Eversource 1999 Annual Report Download - page 16

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as information technology and customer service. The merger also reduces NU’s susceptibility
to seasonal energy use fluctuations because while natural gas demand peaks during the winter,
electricity consumption peaks during the summer.
In the fiscal year ended September 30, 1999, YES reported earnings of $13.4 million, com-
pared to $10.9 million for the fiscal year ended September 30, 1998. The company achieved
these results even though its regulated utility, Yankee Gas, was substantially affected by warmer
than normal weather in both fiscal years. A large portion of the earnings growth was attributable
to the significant improvement in performance at YES’ unregulated businesses.
Other 1999 highlights include:
•Launching of a state-of-the-art Customer Information System designed to enhance customer
service, improve efficiency, and provide the tools to grow in today’s competitive energy environ-
ment. This system will support Yankee’s order processing, meter reading, billing, payment
processing, credit and collections and accounting functions.
•Introduction of Energy Key Commercial Financing, a unique loan program for energy
efficient plant and equipment upgrades to commercial and industrial businesses located in
southern New England.
•Three awards for safety performance, presented by the American Gas Association, the New
England Gas Association and the Connecticut Business and Industry Association.
•An economic development grant to the Meriden Business & Learning Center, building on
the prior year’s support for this work force development program.
•Its third successive award for Web site (www.yankeegas.com) excellence from the Web
Marketing Association, Inc.
Over the past year, YES conducted an extensive analysis of its customer base, focusing
on current and prospective customers. The company has also reorganized its sales force with a
goal of better knowing and reaching out to its customers. Looking ahead to 2000 and beyond, YES
has established three critical success factors: achieving profitable growth, effectively managing
costs, and exerting a positive influence on legislative and regulatory affairs.
Underpinning these goals will be the continued integration of YES into the NU family.
By reaching its goals, YES will support NU’s vision of being the leading provider of energy
products and services in the Northeast.
NUCLEAR – RECOVERY ACCOMPLISHED
In September, NU announced that the Millstone Station nuclear power plant assets of CL&P,
WMECO and PSNH would be put up for public auction. In November, CL&P filed its divestiture
plan for Millstone Station with the state DPUC. The plan calls for auctioning all three units at
the station as a single package in 2000. After evaluating the role of nuclear generation in our com-
pany’s future, NU’s Trustees decided that none of our subsidiaries will bid for the nuclear assets.
Following a three-year shutdown, Millstone unit 2 resumed full power operation in May.
In 1999, the unit achieved a 90.3 percent capacity factor following restart. Millstone 3 has had
an excellent cycle as well, with a 98.1 percent capacity factor in 1999 following its refueling
outage in May. Millstone 1 is being decommissioned.
In 1999, Millstone was under budget despite the challenges of both the unit 2 restart and
a scheduled unit 3 refueling outage. The station successfully fulfilled the requirements of several
Nuclear Regulatory Commission orders imposed during recovery, and its Operator and Technical
Training programs were reaccredited. Millstone’s Safety Conscious Work Environment has improved
and the station’s Employee Concerns Program is regarded as among the best in the country. In
2000, the station will apply its comprehensive strategic plan to position Millstone on the path to
“best of best” performance in the nuclear industry.