Eversource 1999 Annual Report Download - page 30

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Retail revenues decreased by $199 million in 1998 due to retail
rate reductions for CL&P, PSNH and WMECO and the accounting
impact of Millstone 2 and 3 being removed from CL&P’s rate
base. Wholesale revenues decreased by $32 million primarily
as a result of the terminated contract with the Connecticut Municipal
Electric Energy Cooperative (CMEEC). Other revenues decreased
$50 million due to lower billings to outside companies for reim-
bursable costs and price differences among customer classes.
These decreases were partially offset by higher fuel recoveries
and higher retail sales volumes. Fuel recoveries increased by
$166 million primarily due to higher fuel revenues from PSNH
as a result of a higher fuel and purchased-power adjustment
clause rate. Retail kilowatt-hour sales were 1.9 percent higher
and contributed $48 million to nonfuel revenues in 1998 pri-
marily as a result of economic growth in all three states.
OPERATING REVENUES
Total revenues increased by $704 million or 19 percent in 1999
due to higher revenues from the competitive companies ($552
million), higher regulated wholesale revenue ($107 million)
and higher regulated retail revenue ($45 million). The competitive
companies’ increase is due to higher revenues from Select Energy
($526 million) and HEC Inc. (HEC) ($26 million). Select Energy’s
revenues were higher in 1999 as a result of new contracts for
energy sales. The regulated wholesale revenue increase is pri-
marily due to higher energy sales and related capacity and
transmission revenues. The regulated retail increase is primarily
due to higher retail sales ($99 million) and the impact of
Millstone 2 and 3 being returned to CL&P’s rate base ($13 million).
These retail increases were partially offset by retail rate reductions
for CL&P and WMECO ($55 and $12 million, respectively).
Regulated retail kilowatt-hour sales increased by 3.8 percent.
RESULTS OF OPERATIONS
The components of significant income statement variances for the past two years are provided in the table below.
28
Income Statement Variances 1999 over/(under) 1998 1998 over/(under) 1997
(Millions of Dollars) Amount Percent Amount Percent
Operating Revenues $ 704 19% $ (67) (2)%
Operating Expenses:
Fuel, purchased and net interchange power 428 29 (8) (1)
Other operation 52 7 (116) (13)
Maintenance (58) (15) (103) (20)
Depreciation (31) (9) (22) (6)
Amortization of regulatory assets, net 393 (a) 79 64
Federal and state income taxes 93 (a) 4(a)
Taxes other than income taxes 9 4 (2) (1)
Gain on sale of utility plant (309) — — —
Total operating expenses 584 16 (101) (3)
Operating income 120 53 34 18
Equity in earnings of regional nuclear
generating and transmission companies (7) (59) (1) (9)
Nuclear unrecoverable costs 72 50 (143) —
Other income/(loss), net (19) (a) 19 61
Interest charges, net (5) (2) (3) (1)
Preferred dividends of subsidiaries (4) (14) (4) (13)
Net income/(loss) 181 (a) (17) (13)
(a) Percentage greater than 100.