Eversource 2008 Annual Report Download - page 78

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any net settlement proceeds it receives would be incorporated into FERC-approved
recoveries, which would be passed on to its customers, through reduced charges.
F. Guarantees and Indemnifications
NU provides credit assurances on behalf of subsidiaries in the form of guarantees
and LOCs in the normal course of business. NU has also provided guarantees and
various indemnifications on behalf of external parties as a result of the sales of SESI,
NU Enterprises’ retail marketing business and its competitive generation business. The
following table summarizes NU and its subsidiaries’ maximum exposure at December 31,
2008, in accordance with FIN 45, “Guarantor’s Accounting and Disclosure Requirements
for Guarantees, Including Indirect Guarantees of Indebtedness of Others,” expiration
dates, and fair value of amounts recorded.
77
Maximum Exposure Expiration
Company Description (in millions) Date(s)
On behalf of external parties:
SESI General indemnifications in connection with the sale of SESI
including completeness and accuracy of information provided,
compliance with laws, and various claims Not Specified (1) None
Specific indemnifications in connection with the sale of SESI
for estimated costs to complete or modify specific projects (2) Not Specified (1) Through project
completion
Indemnifications to lenders for payment of shortfalls in the event
of early termination of government contracts (3) $1.3 2017-2018
Surety bonds covering certain projects $10.5 Through project
completion
Hess Corporation (Retail Marketing Business) General indemnifications in connection with the sale including
compliance with laws, completeness and accuracy of information
provided and various claims Not Specified (1) None
Energy Capital Partners
(Competitive Generation Business) General indemnifications in connection with the sale of NGC
and the generating assets of Mt. Tom including compliance with tax
and environmental laws, and various claims Not Specified (1) 2008-2009
On behalf of subsidiaries:
CL&P Surety bonds (4) $3.2 2009-2010
PSNH Surety bonds (4) $3.9 2009-2010
Letters of credit $85.0 2009-2010
WMECO Surety bonds (4) $3.0 2009
HWP Surety bonds (4) $1.0 2009
NAESCO Surety bonds (4) $1.6 2009
RRR Lease payments for real estate $9.2 2024
NUSCO Surety bonds (4) $1.0 2009
Lease payments for fleet of vehicles $8.0 None
Lease payments for real estate $1.8 2019
Boulos Surety bonds covering ongoing projects $34.1 Through project
completion
NGS Performance guarantee and insurance bonds $20.4(5) 2020 (5)
Select Energy Performance guarantees and surety bonds for retail
marketing contracts $3.3(6) None (7)
Performance guarantees for wholesale contracts $17.1(6) 2013
Letters of credit $2.0 2009
Other - CYAPC Surety bonds (4) $0.3 2010
Refer to footnotes on following page.