Eversource 2008 Annual Report Download - page 85

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84
The NU Enterprises segment is comprised of the following: 1) Select Energy (wholesale
contracts), 2) Boulos, 3) NGS, 4)NGS Mechanical, 5) SECI, and 6) NU Enterprises
parent.
Other in the segment tables primarily consists of 1) the results of NU parent, which
includes other income related to the equity in earnings of NU parent’s subsidiaries and
interest income from the NU Money Pool, which are both eliminated in consolidation,
and interest income and expense related to the cash and debt of NU parent,
respectively, 2) the revenues and expenses of NU’s service companies, most of which
are eliminated in consolidation, and 3) the results of other subsidiaries, which are
comprised of RRR and the Quinnehtuk Company (real estate subsidiaries), Mode 1
Communications, Inc. and the results of the non-energy-related subsidiaries of Yankee
(Yankee Energy Services Company, Yankee Energy Financial Services Company, and
NorConn Properties, Inc.).
Eective on January 1, 2007, financial information for the remaining operations of
HWP that were not exited as part of the sale of the competitive generation business
was included as part of the Other reportable segment as these operations were no
longer considered part of NU Enterprises subsequent to the sale. Accordingly, HWP’s
remaining operations have been presented as part of the Other reportable segment for
the years ended December 31, 2008 and 2007.
As a result of the sale of NU Enterprises’ retail marketing and competitive generation
businesses, the financial information used by management was reduced to the
remaining wholesale contracts, the operations of the remaining energy services
businesses and NU Enterprises parent. As a result of exiting these businesses in
2006, the operations of NU Enterprises have been aggregated and presented as one
reportable segment for the years ended December 31, 2008, 2007 and 2006.
NU’s consolidated statements of income for the years ended December 31, 2007 and
2006 present the operations for NGC, including certain components of NGS, Mt. Tom,
SESI, a portion of the former Woods Electrical and SECI as discontinued operations.
For further information and information regarding the exit from these businesses, see
Note 14, “Restructuring and Impairment Charges and Discontinued Operations,” to the
consolidated financial statements.
Intercompany Transactions: Total Select Energy revenues from CL&P represented
approximately $6.1 million of total NU Enterprises’ revenues for the year ended
December 31, 2006. Total CL&P purchases from Select Energy related to nontraditional
standard oer contracts are eliminated in consolidation. There were no such
transactions in 2008 or 2007.
Select Energy purchases from NGC and Mt. Tom represented $160.7 million through
November 1, 2006, at which time NU completed the sale of its 100 percent ownership in
NGC stock and Mt. Tom.
Customer Concentrations: Select Energy provided basic generation service in the New
Jersey market through 2007. In 2006 and 2005, Select Energy also provided service
in the Maryland market. Select Energy billings related to these contracts represented
$116.1 million and $404.4 million for the years ended December 31, 2007 and 2006,
respectively, of total NU Enterprises’ billings. No other individual customer represented
in excess of 10 percent of NU Enterprises’ billings for the years ended December 31,
2008, 2007 and 2006. As these contracts expire, billings under a long-term contract
with NYMPA will likely exceed 10 percent of NU Enterprises’ billings in future periods.
Select Energy reported the settlement of all derivative contracts of the wholesale
marketing business, including full requirements sales contracts and intercompany
revenues, in fuel, purchased and net interchange power. This net presentation is a result
of applying mark-to-market accounting to those contracts due to the decision to exit
the wholesale marketing business.
Regulated companies revenues from the sale of electricity and natural gas primarily are
derived from residential, commercial and industrial customers and are not dependent
on any single customer.