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47
Tothe Board of Trustees and Shareholders of Northeast Utilities:
We have audited the accompanying consolidated balance sheets and
consolidated statements of capitalization of Northeast Utilities and
subsidiaries (a Massachusetts Trust) (the “Company”) as of December 31,
2005 and 2004, and the related consolidated statements of
(loss)/income, comprehensive (loss)/income, shareholders’ equity,
and cash flows for each of the three years in the period ended
December 31, 2005. These financial statements are the responsibility
of the Company’s management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, such consolidated financial statements present fairly,
in all material respects, the financial position of Northeast Utilities
and subsidiaries as of December 31, 2005 and 2004, and the results
of their operations and their cash flows for each of the three years in
the period ended December 31, 2005, in conformity with accounting
principles generally accepted in the United States of America.
As discussed in Notes 2 and 3, the Company recorded significant
charges in the year ended December 31, 2005 in connection with its
decision to exit certain business lines and, as discussed in Note 4,
certain components of the Company’s energy services businesses
arereported as discontinued operations.
We have also audited, in accordance with the standards of the Public
Company Accounting Oversight Board(United States), the effectiveness
of the Company’s internal control over financial reporting as of
December 31, 2005, based on the criteria established in Internal
Control—Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission and our
report dated March 7, 2006 expressed an unqualified opinion on
management’s assessment of the effectiveness of the Company’s
internal control over financial reporting and an unqualified opinion
on the effectiveness of the Company’s internal control over
financial reporting.
Hartford, Connecticut
March 7, 2006