Eversource 2001 Annual Report Download - page 9

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7
Financial Strength and
Flexibility
earnings power in the regulated side of the company.
Our unregulated businesses will continue to be
our earnings growth engine and opportunistic invest-
ments will be the underpinnings of increased revenue
and earnings. Our goal is to recognize $3.8 billion in
sales revenue in 2002; the challenge in later years is
to achieve an average 15 percent rate of return.
Enhancing profitability in 2002 will include
expanding deeper into our 11 state target market as
we take a deliberate approach to conservative energy
marketing activities, acquiring generation as sound
opportunities present themselves and further
developing our energy service and energy marketing
businesses.
Credit ratings are an element of NU’s financial scorecard. To vice chairman
and chief financial officer John H. Forsgren,they are the key indicator of
financial strength. “NU is nearly an A rated company, a remarkable accom-
plishment for us as credit rating agencies recognize our financially stable
and profitable status.” In his sixth year with NU, Forsgren views 2002 as a
dynamic year of investment, growth and increased earnings power.
Financial Performance is the key measure of NU’s
success in executing its strategy. An A rated company
is recognized world-wide as financially strong and
stable. NU received multiple rounds of upgrades in a
year that saw most utilities’ ratings trend lower. NU
system ratings are higher than they’ve ever been.
CL&P is already A rated and NU is close; a source of
pride for our employees and shareholders and a sign
of strength and stability to investors.
Our theme is reinvestment. It will be rapid, aggres-
sive and consistent. Our near-term transition period
will be dynamic. We will invest as rapidly as we can in
the regulated companies to rebuild our equity invest-
ment in their operations. By doing so, we restore
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