Eversource 2008 Annual Report Download - page 53

CONSOLIDATED STATEMENTS OF CAPITALIZATION
At December 31,
(Thousands of Dollars) 2008 2007
Common Shareholders’ Equity $ 3,020,312 $ 2,913,835
Preferred Stock:
CL&P Preferred Stock Not Subject to Mandatory Redemption -
$50 par value - authorized 9,000,000 shares in 2008 and 2007;
2,324,000 shares outstanding in 2008 and 2007;
Dividend rates of $1.90 to $3.28;
Current redemption prices of $50.50 to $54.00 116,200 116,200
Long-Term Debt:
First Mortgage Bonds:
Final Maturity Interest Rates
2009-2012 6.20% to 7.19% 67,143 71,429
2014-2018 4.80% to 6.90% 1,205,000 695,000
2019-2024 5.26% to 8.48% 209,845 209,845
2026-2037 5.35% to 6.375% 830,000 830,000
Total First Mortgage Bonds 2,311,988 1,806,274
Other Long-Term Debt:
Pollution Control Notes:
2016-2018 5.90% 25,400 25,400
2021-2022 Variable Rate and 4.75% to 6.00% 428,285 428,285
2028 5.85% to 5.95% 369,300 369,300
2031 3.35% and Variable Rate in 2008; 3.35% in 2007 62,000 62,000
Other:
2008-2009 Variable Rate and 3.30% - 195,000
2012-2015 5.00% to 7.25% 618,000 368,000
2034-2037 5.90% to 6.70% 90,000 90,000
Total Pollution Control Notes and Other 1,592,985 1,537,985
Total First Mortgage Bonds, Pollution Control Notes and Other 3,904,973 3,344,259
Fees and interest due for spent nuclear fuel disposal costs 298,555 294,305
Change in fair value resulting from interest rate hedge instrument 20,828 4,172
Unamortized premium and discount, net (4,908 ) (4,851 )
Reacquisition of Pollution Control Notes (62,000 ) -
Total Long-Term Debt 4,157,448 3,637,885
Less: Amounts due within one year 54,286 154,286
Long-Term Debt 4,103,162 3,483,599
Total Capitalization $ 7,239,674 $ 6,513,634
The accompanying notes are an integral part of these consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies
A. About Northeast Utilities
Consolidated: Northeast Utilities (NU or the company) is the parent company of
the regulated companies and NU Enterprises, Inc. (NU Enterprises), as described
below. NU was formed on July 1, 1966 when The Connecticut Light and Power
Company (CL&P), Western Massachusetts Electric Company (WMECO) and The
Hartford Electric Light Company aliated under the common ownership of the NU
system. In 1967, Holyoke Water Power Company (HWP) joined the aliation. In
1992, Public Service Company of New Hampshire (PSNH) became a subsidiary of
NU parent. On March 1, 2000, gas became an integral part of NU’s Connecticut
operations when NU’s merger with Yankee Energy System, Inc. (Yankee) and its
principal subsidiary, Yankee Gas Services Company (Yankee Gas), was completed.
Until February8, 2006, NU was registered with the Securities and Exchange
Commission (SEC) as a holding company under the Public Utility Holding Company
Act of 1935 (PUHCA). On February 8, 2006, PUHCA was repealed. NU is now
registered with the Federal Energy Regulatory Commission (FERC) as a public
utility holding company under the PUHCA of 2005. Arrangements among the
regulated electric companies, NU Enterprises and other NU companies, outside
agencies and other utilities covering interconnections, interchange of electric power
and sales of utility property are subject to regulation by the FERC. The regulated
companies are subject to further regulation for rates, accounting and other matters
by the FERC and/or applicable state regulatory commissions.
Regulated Companies: CL&P, PSNH and WMECO furnish franchised retail electric
service in Connecticut, New Hampshire and Massachusetts, respectively. Yankee
Gas owns and operates Connecticut’s largest natural gas distribution system.
CL&P, PSNH and WMECO’s results include the operations of its distribution and
transmission segments. PSNH’s distribution results include the operations of
its generation business. Yankee Gas’ results include the operations of its gas
distribution segment.
NU Enterprises: NU Enterprises is the parent company of Select Energy, Inc. (Select
Energy), E. S. Boulos Company (Boulos), Northeast Generation Services Company
(NGS), NGS Mechanical, Inc. and Select Energy Contracting, Inc. (SECI), which are
collectively referred to as NU Enterprises. For information regarding NU’s exit from
certain of these businesses, see Note14, “Restructuring and Impairment Charges
and Discontinued Operations,” to the consolidated financial statements.
B. Presentation
The consolidated financial statements of NU include the accounts of all its
subsidiaries. Intercompany transactions have been eliminated in consolidation.
The preparation of consolidated financial statements in conformity with accounting
principles generally accepted in the United States of America requires management
to make estimates and assumptions that aect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date of the consolidated
financial statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could dier from those estimates.
Certain reclassifications of prior period data included in the accompanying
consolidated financial statements have been made to conform with the current
year’s presentation.
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