Eversource 1999 Annual Report Download - page 9

Our regulated businesses experienced a momentous year. Deregulation agree-
ments in three New England states transformed the competitive landscape,
sharply reduced rates for electricity consumers, and presented our operating
companies with new challenges. Foremost among these is to concentrate on
efficiently, reliably and safely delivering electricity to homes and businesses. As the
foundation of the Northeast Utilities system, our core transmission and distribution
companies, in their newly defined role, will be able to help our competitive businesses grow sub-
stantially in emerging markets.
Two of the three companies – The Connecticut Light and Power Company (CL&P) and
Western Massachusetts Electric Company (WMECO) – have already sold their non-nuclear
generating assets and are operating solely in the transmission, distribution and customer service
businesses. Public Service Company of New Hampshire (PSNH) awaits final regulatory and
legislative approvals before going forward with the sale of its generating assets.
In 1999, NU system companies’ economic and community partnerships with state and pri-
vate business development groups led to the recruitment and expansion of 138 businesses that
will add 8.3 million square feet of business space and more than 8,100 new jobs in our Connecticut,
Massachusetts and New Hampshire service areas.
Our regulated portfolio of companies began to expand its market reach with the announce-
ment that Yankee Energy System, Inc. (YES) of Meriden, Connecticut, agreed to merge with NU.
The Yankee merger strengthens NU in significant ways. YES subsidiary Yankee Gas is the largest
natural gas distributor in Connecticut and has one of the most modern gas distribution systems
in the region.
In a year of dramatic change, the Yankee merger restores one of our former subsidiaries to
the NU family, ten years after Yankee was divested. Its return is especially noteworthy at a time
when our company presses forward with its vision of being the leading provider of energy products
and services in the Northeast. Yankee and our three other regulated operating companies are
responding to the challenge with vigor and purpose.
CL&P – FINDING NEW FOCUS
In 1999, CL&P completed the $460 million sale of 2,235 megawatts (MW) of fossil-fueled gen-
eration in Connecticut to NRG Energy, Inc. of Minneapolis. About 280 positions were affected,
with no loss of jobs, as all CL&P employees were offered positions with the new owner.
CL&P sold its fossil fuel and hydroelectric generation assets as part of its restructuring plan
filed with the state Department of Public Utility Control (DPUC) in compliance with legislation
enacted in 1998. Proceeds from the sale helped CL&P achieve the state-mandated 10 percent
generation rate reduction by January 1, 2000, in accordance with the state’s restructuring legislation.
The DPUC also ruled that beginning in January 2000, NU’s unregulated subsidiary, Select Energy,
would be licensed to supply 50 percent of CL&P’s standard offer electric service to its customers.
In July, the DPUC issued its final decision in CL&P’s stranded cost proceeding. CL&P had
requested recovery of $4.4 billion in stranded costs. The decision approved up to $3.5 billion. It
also provided for the possible recovery of a significant portion of the remaining amount in the future
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REGULATED BUSINESSES
CL&P stands ready to meet the
challenges of the new energy market-
place, and its commitment to a
high level of customer satisfaction
is on the line around the clock
every day. Courteous and knowl-
edgeable personnel demonstrate
CL&P’s focus on customer service
and satisfaction on each customer
call. Pictured at left are Customer
Service staff from our Wethersfield
Call Center: (foreground from left)
Emma Williams, Linda Stewart;
(background from left) Luz Herrera,
Joseph Morrissey, Sabrina
Caldarella, William Collins and
Nancy Mayer.