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86
and the NU commercial paper program of $305.8 million. As a result and in accordance with applicable accounting guidance, these
amounts were classified as Long-Term Debt on the balance sheet as of December 31, 2012.
Intercompany loans from NU to CL&P, PSNH and WMECO are eliminated in consolidation in NU's balance sheets.
Under the credit facilities, NU and its subsidiaries must comply with certain financial and non-financial covenants, including a
consolidated debt to total capitalization ratio. As of December 31, 2013 and 2012, NU and its subsidiaries were in compliance with
these covenants. If NU or its subsidiaries were not in compliance with these covenants, an event of default would occur requiring all
outstanding borrowings by such borrower to be repaid and additional borrowings by such borrower would not be permitted under its
respective credit facility.
Working Capital: Each of NU, CL&P, NSTAR Electric, PSNH and WMECO use its available capital resources to fund its respective
construction expenditures, meet debt requirements, pay operating costs, including storm-related costs, pay dividends and fund other
corporate obligations, such as pension contributions. The current growth in NU’s transmission construction expenditures utilizes a
significant amount of cash for projects that have a long-term return on investment and recovery period. In addition, NU’s Regulated
companies recover its electric and natural gas distribution construction expenditures as the related project costs are depreciated over
the life of the assets. This impacts the timing of the revenue stream designed to fully recover the total investment plus a return on the
equity portion of the cost and related financing costs. These factors have resulted in current liabilities exceeding current assets by
approximately $1.2 billion, $398 million and $339 million at NU, CL&P and NSTAR Electric, respectively, as of December 31, 2013.
As of December 31, 2013, $501.7 million of NU's obligations classified as current liabilities relates to long-term debt that will be paid in
the next 12 months, consisting of $150 million for CL&P, $301.7 million for NSTAR Electric and $50 million for PSNH. In addition, $31.7
million relates to the amortization of the purchase accounting fair value adjustment that will be amortized in the next twelve months.
NU, with its strong credit ratings, has several options available in the financial markets to repay or refinance these maturities with the
issuance of new long-term debt. NU, CL&P, NSTAR Electric, PSNH and WMECO will reduce their short-term borrowings with cash
received from operating cash flows or with the issuance of new long-term debt, determined considering capital requirements and
maintenance of NU's credit rating and profile. Management expects the future operating cash flows of NU, CL&P, NSTAR Electric,
PSNH and WMECO, along with the access to financial markets, will be sufficient to meet any future operating requirements and capital
investment forecasted opportunities.
9. LONG-TERM DEBT
Details of long-term debt outstanding are as follows:
CL&P
As of December 31,
(Millions of Dollars)
2013
2012
First Mortgage Bonds:
7.875% 1994 Series D due 2024
$
139.8
$
139.8
4.800% 2004 Series A due 2014
150.0
150.0
5.750% 2004 Series B due 2034
130.0
130.0
5.000% 2005 Series A due 2015
100.0
100.0
5.625% 2005 Series B due 2035
100.0
100.0
6.350% 2006 Series A due 2036
250.0
250.0
5.375% 2007 Series A due 2017
150.0
150.0
5.750% 2007 Series B due 2037
150.0
150.0
5.750% 2007 Series C due 2017
100.0
100.0
6.375% 2007 Series D due 2037
100.0
100.0
5.650% 2008 Series A due 2018
300.0
300.0
5.500% 2009 Series A due 2019
250.0
250.0
2.500% 2013 Series A due 2023(1)
400.0
-
Total First Mortgage Bonds
2,319.8
1,919.8
Pollution Control Notes:
4.375% Fixed Rate Tax Exempt due 2028
120.5
120.5
1.25% Fixed Rate Tax Exempt due 2028(2)
-
125.0
1.55% Fixed Rate Tax Exempt due 2031(2)
62.0
62.0
Total Pollution Control Notes
182.5
307.5
Total First Mortgage Bonds and Pollution Control Notes
2,502.3
2,227.3
Fees and Interest due for Spent Nuclear Fuel Disposal Costs
244.4
244.3
CL&P Commercial Paper and Revolver Borrowings(1)
-
394.8
Less Amounts due Within One Year
(150.0)
(125.0)
Unamortized Premiums and Discounts, Net
(5.5)
(3.6)
CL&P Long-Term Debt
$
2,591.2
$
2,737.8