Eversource 2009 Annual Report Download - page 158

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FS-73
The refund to CL&P, PSNH and WMECO of any damages that may be recovered from the DOE will be realized through the Yankee
Companies' FERC-approved rate settlement agreements, subject to final determination of the FERC. CL&P, PSNH and WMECO
cannot at this time determine the timing or amount of any ultimate recovery the Yankee Companies may obtain from the DOE on this
matter. However, NU believes that any net settlement proceeds it receives would be incorporated into FERC-approved recoveries,
which would be passed on to its customers, through reduced charges.
E. Guarantees and Indemnifications (All Companies)
NU parent provides credit assurances on behalf of its subsidiaries, including CL&P, PSNH, and WMECO, 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 sale of SESI. As of December 31, 2009, the aggregate fair value amount recorded for these guarantees and
indemnifications totaled $0.3 million (with $0.2 million included in Current liabilities - other and $0.1 million included in Deferred Credits
and Other Liabilities - Other on the accompanying consolidated balance sheets).
In addition, NU parent provided guarantees and various indemnifications on behalf of external parties as a result of the sales of NU
Enterprises' former retail marketing business and competitive generation business. As of December 31, 2009, these included
indemnifications for compliance with tax and environmental laws, and various claims for which the maximum exposure was not specified
in the sale agreements.
The following table summarizes the NU, including CL&P, PSNH, and WMECO, maximum exposure as of December 31, 2009, in
accordance with guidance on guarantor's accounting and disclosure requirements for guarantees, including indirect guarantees of
indebtedness of others, and expiration dates:
Company Description
Maximum
Exposure
(in millions)
Expiration
Date(s)
On behalf of external parties:
Ameresco Select, Inc. 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)
$0.9 2017-2018
Surety bonds covering certain projects $0.4 Through project
completion
On behalf of subsidiaries:
CL&P Surety bonds $2.5 January -
September
2010 (4)
PSNH Surety bonds $4.0 January -
November 2010 (4)
Letters of credit $39.0 March - October
2010
WMECO Surety bonds $3.7 May - June
2010 (4)
Other subsidiaries Surety bonds $3.3 April - May
2010 (4)
Rocky River Realty Company Lease payments for real estate $11.4 2024
NUSCO Lease payments for fleet of vehicles $6.7 January 2010 - 2014
Lease payments for real estate $2.2 2019