Eversource 2009 Annual Report Download - page 29

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Yankee Gas
As of December 31, 2009, Yankee Gas owned 28 active gate stations, approximately 200 district regulator stations and 3,200 miles of
gas main pipelines. Yankee Gas also owns a 1.2 Bcf LNG facility in Waterbury, Connecticut as well as a propane facility in Kensington,
Connecticut.
Franchises
CL&P. Subject to the power of alteration, amendment or repeal by the General Assembly of Connecticut and subject to certain
approvals, permits and consents of public authority and others prescribed by statute, CL&P has, subject to certain exceptions not
deemed material, valid franchises free from burdensome restrictions to provide electric transmission and distribution services in the
respective areas in which it is now supplying such service.
In addition to the right to provide electric transmission and distribution services as set forth above, the franchises of CL&P include,
among others, limited rights and powers, as set forth in Title 16 of the Connecticut General Statutes and the special acts of the General
Assembly constituting its charter, to manufacture, generate, purchase and/or sell electricity at retail, including to provide Standard
Service, Supplier of Last Resort service and backup service, to sell electricity at wholesale and to erect and maintain certain facilities on
public highways and grounds, all subject to such consents and approvals of public authority and others as may be required by law. The
franchises of CL&P include the power of eminent domain. Title 16 of the Connecticut General Statutes was amended by Public Act 03-
135, "An Act Concerning Revisions to the Electric Restructuring Legislation," to prohibit an electric distribution company from owning or
operating generation assets. However, Public Act 05-01, "An Act Concerning Energy Independence," allows CL&P to own up to 200
MW of peaking facilities if the DPUC determines that such facilities will be more cost effective than other options for mitigating FMCCs
and LICAP costs. In addition, Section 83 of Public Act 07-242, "An Act Concerning Electricity and Energy Efficiency" states that if an
existing electric generating plant located in Connecticut is offered for sale, then an electric distribution company, such as CL&P, would
be eligible to purchase the generation plant upon obtaining prior approval from the DPUC and a determination by the DPUC that such
purchase is in the public interest.
PSNH. The NHPUC, pursuant to statutory requirements, has issued orders granting PSNH exclusive franchises to distribute electricity
in the respective areas in which it is now supplying such service.
In addition to the right to distribute electricity as set forth above, the franchises of PSNH include, among others, rights and powers to
manufacture, generate, purchase, and transmit electricity, to sell electricity at wholesale to other utility companies and municipalities
and to erect and maintain certain facilities on certain public highways and grounds, all subject to such consents and approvals of public
authority and others as may be required by law. The distribution and transmission franchises of PSNH include the power of eminent
domain.
WMECO. WMECO is authorized by its charter to conduct its electric business in the territories served by it, and has locations in the
public highways for transmission and distribution lines. Such locations are granted pursuant to the laws of Massachusetts by the
Department of Public Works of Massachusetts or local municipal authorities and are of unlimited duration, but the rights thereby granted
are not vested. Such locations are for specific lines only and for extensions of lines in public highways. Further similar locations must
be obtained from the Department of Public Works of Massachusetts or the local municipal authorities. In addition, WMECO has been
granted easements for its lines in the Massachusetts Turnpike by the Massachusetts Turnpike Authority and pursuant to state laws, has
the power of eminent domain.
The Massachusetts restructuring legislation defines service territories as those territories actually served on July 1, 1997 and following
municipal boundaries to the extent possible. The restructuring legislation further provides that until terminated by law or otherwise,
distribution companies shall have the exclusive obligation to serve all retail customers within their service territories and no other person
shall provide distribution service within such service territories without the written consent of such distribution companies. Pursuant to
the Massachusetts restructuring legislation, the DPU (then, the Department of Telecommunications and Energy) was required to define
service territories for each distribution company, including WMECO. The DPU subsequently determined that there were advantages to
the exclusivity of service territories and issued a report to the Massachusetts Legislature recommending against, in this regard, any
changes to the restructuring legislation.
Yankee Gas. Yankee Gas, directly and from its predecessors in interest, holds valid franchises to sell gas in the areas in which Yankee
Gas supplies gas service. Generally, Yankee Gas holds franchises to serve customers in areas designated by those franchises as well
as in most other areas throughout Connecticut so long as those areas are not occupied and served by another gas utility under a valid
franchise of its own or are not subject to an exclusive franchise of another gas utility. Yankee Gas’ franchises are perpetual but remain
subject to the power of alteration, amendment or repeal by the General Assembly of the State of Connecticut, the power of revocation
by the DPUC and certain approvals, permits and consents of public authorities and others prescribed by statute. Generally, Yankee
Gas’ franchises include, among other rights and powers, the right and power to manufacture, generate, purchase, transmit and
distribute gas and to erect and maintain certain facilities on public highways and grounds, and the right of eminent domain, all subject to
such consents and approvals of public authorities and others as may be required by law.