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NORTHEAST UTILITIES
THE CONNECTICUT LIGHT AND POWER COMPANY
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
WESTERN MASSACHUSETTS ELECTRIC COMPANY
PART I
Item 1. Business
NU, headquartered in Hartford, Connecticut, is a public utility holding company subject to regulation by the Federal Energy Regulatory
Commission (FERC) under the Public Utility Holding Company Act of 2005. We are engaged primarily in the energy delivery business
through the following wholly-owned utility subsidiaries:
● The Connecticut Light and Power Company (CL&P), a regulated electric utility which serves residential, commercial and
industrial customers in parts of Connecticut;
● Public Service Company of New Hampshire (PSNH), a regulated electric utility which serves residential, commercial and
industrial customers in parts of New Hampshire and continues to own generation assets used to serve customers;
● Western Massachusetts Electric Company (WMECO), a regulated electric utility which serves residential, commercial and
industrial customers in parts of western Massachusetts; and
● Yankee Gas Services Company (Yankee Gas), a regulated gas utility which serves residential, commercial and industrial
customers in parts of Connecticut.
We sometimes refer to CL&P, PSNH, WMECO and Yankee Gas collectively in this Annual Report on Form 10-K as the "regulated
companies."
NU also owns certain unregulated businesses through its wholly-owned subsidiary, NU Enterprises, Inc. (NU Enterprises). We have
exited most of these businesses. As of December 31, 2009, NU Enterprises’ remaining business consisted of (i) Select Energy Inc.’s
few remaining energy wholesale marketing contracts, and (ii) NU Enterprises’ remaining electrical contracting business.
Although NU, CL&P, PSNH and WMECO each report their financial results separately, we also include information in this report on a
segment, or line-of-business basis. The regulated companies include three business segments: the electric distribution segment (which
includes PSNH’s regulated generation activities), the natural gas distribution segment, and the electric transmission segment. The
regulated companies’ segment of our business represented approximately 98 percent of our total earnings of $330 million for 2009, with
electric distribution (including PSNH’s generation activities) representing approximately 41.9 percent, electric transmission representing
approximately 49.8 percent, and natural gas distribution representing approximately 6.4 percent. The remaining two percent of our
2009 earnings come from our competitive businesses, which are being wound down. See "Overview - Competitive Businesses" in Item
7, Management's Discussion and Analysis of Financial Condition and Results of Operations, in this Annual Report on Form 10-K.
For information regarding each of NU’s segments, see Note 17, "Segment Information," to the Consolidated Financial Statements in this
Annual Report on Form 10-K.
REGULATED ELECTRIC DISTRIBUTION
General
NU’s distribution segment is made up of the distribution businesses of CL&P, PSNH and WMECO, which are primarily engaged in the
distribution of electricity in Connecticut, New Hampshire and western Massachusetts, respectively, plus PSNH’s regulated electric
generation business. The following table shows the sources of 2009 electric franchise retail revenues for NU’s electric distribution
companies, collectively, based on categories of customers:
Sources of Revenue
Total Operating
Companies
Residential 58%
Commercial 34%
Industrial 7%
Other 1%
Total 100%