Eversource 2013 Annual Report Download - page 90

78
Regulatory Liabilities: The components of regulatory liabilities are as follows:
NU
As of December 31,
(Millions of Dollars)
2013
2012
Cost of Removal
$
435.1
$
440.8
Regulatory Tracker Mechanisms
151.2
95.1
AFUDC – Transmission
68.1
70.0
Other Regulatory Liabilities
52.9
68.4
Total Regulatory Liabilities
707.3
674.3
Less: Current Portion
204.3
134.1
Total Long-Term Regulatory Liabilities
$
503.0
$
540.2
As of December 31,
2013
2012
NSTAR
NSTAR
(Millions of Dollars)
CL&P
Electric
PSNH
WMECO
CL&P
Electric
PSNH
WMECO
Cost of Removal
$
29.1
$
250.0
$
49.7
$
-
$
44.2
$
240.3
$
51.2
$
-
Regulatory Tracker Mechanisms
95.6
21.9
21.6
21.1
39.1
14.4
20.4
19.0
AFUDC – Transmission
54.7
4.1
-
9.3
56.6
4.1
-
9.3
Other Regulatory Liabilities
8.4
31.1
1.0
3.4
16.5
32.9
3.8
2.4
Total Regulatory Liabilities
187.8
307.1
72.3
33.8
156.4
291.7
75.4
30.7
Less: Current Portion
94.0
54.0
20.6
19.9
32.1
47.5
23.0
21.0
Total Long-Term Regulatory Liabilities
$
93.8
$
253.1
$
51.7
$
13.9
$
124.3
$
244.2
$
52.4
$
9.7
Cost of Removal: NU's Regulated companies currently recover amounts in rates for future costs of removal of plant assets over the
lives of the assets. The estimated cost to remove utility assets from service is recognized as a component of depreciation expense and
the cumulative amounts collected from customers but not yet expended is recognized as a regulatory liability. Expended costs that
exceed amounts collected from customers are recognized as regulatory assets, as they are probable of recovery in future rates.
AFUDC - Transmission: AFUDC was recorded by CL&P and WMECO for their NEEWS projects through May 31, 2011, all of which
was reserved as a regulatory liability to reflect rate base recovery for 100 percent of the CWIP as a result of FERC-approved
transmission incentives. Effective June 1, 2011, FERC approved changes to the ISO-NE Tariff in order to include 100 percent of the
NEEWS CWIP in regional rate base. As a result, CL&P and WMECO no longer record AFUDC on NEEWS CWIP. NSTAR Electric
recorded AFUDC on reliability-related projects over $5 million through December 31, 2013, 50 percent of which was recorded as a
regulatory liability to reflect rate base recovery for 50 percent of the CWIP as a result of FERC-approved transmission incentives.
Other Regulatory Liabilities: Other Regulatory Liabilities primarily includes amounts that are subject to various rate reconciling
mechanisms that, as of each period end date, would result in refunds to customers.
4. PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION
Utility property, plant and equipment is recorded at original cost. Original cost includes materials, labor, construction overhead and
AFUDC for regulated property. The cost of repairs and maintenance, including planned major maintenance activities, is charged to
Operating Expenses as incurred.
The following tables summarize the investments in utility property, plant and equipment by asset category:
NU
As of December 31,
(Millions of Dollars)
2013
2012
Distribution - Electric
$
11,950.2
$
11,438.2
Distribution - Natural Gas
2,425.9
2,274.2
Transmission
6,412.5
5,541.1
Generation
1,152.3
1,146.6
Electric and Natural Gas Utility
21,940.9
20,400.1
Other (1)
508.7
429.3
Property, Plant and Equipment, Gross
22,449.6
20,829.4
Less: Accumulated Depreciation
Electric and Natural Gas Utility
(5,387.0)
(5,065.1)
Other
(196.2)
(171.5)
Total Accumulated Depreciation
(5,583.2)
(5,236.6)
Property, Plant and Equipment, Net
16,866.4
15,592.8
Construction Work in Progress
709.8
1,012.2
Total Property, Plant and Equipment, Net
$
17,576.2
$
16,605.0
(1) These assets represent unregulated property and are primarily comprised of building improvements at RRR, software, hardware
and equipment at NUSCO and telecommunications assets at NSTAR Communications, Inc.