Eversource 2009 Annual Report Download - page 30

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Item 3. Legal Proceedings
1. Yankee Companies v. U.S. Department of Energy
Yankee Atomic Electric Company (YAEC), Maine Yankee Atomic Power Company (MYAPC), and Connecticut Yankee Atomic Power
Company (CYAPC) (the Yankee Companies) commenced litigation in 1998 against the United States Department of Energy (DOE)
charging that the federal government breached contracts it entered into with each company in 1983 under the Nuclear Waste Policy Act
of 1982 to begin removing spent nuclear fuel from the respective nuclear plants no later than January 31, 1998 in return for payments
by each company into the Nuclear Waste Fund. The funds for those payments were collected from regional electric customers. The
Yankee Companies initially claimed damages for incremental spent nuclear fuel storage, security, construction and other costs through
2010.
In 2006, the Court of Federal Claims held that the DOE was liable for damages to CYAPC for $34.2 million through 2001, YAEC for
$32.9 million through 2001 and MYAPC for $75.8 million through 2002. In December 2006, the DOE appealed the decision and the
Yankee Companies filed cross-appeals. The Court of Appeals disagreed with the trial court’s method of calculation of the amount of the
DOE’s liability, among other things, and vacated the decision of the Court of Federal Claims and remanded the case to make new
findings consistent with its decision. The application of any damages which are ultimately recovered to benefit customers is established
in the Yankee Companies' FERC-approved rate settlement agreements, although implementation will be subject to the final
determination of the FERC.
In December 2007, the Yankee Companies filed a second round of lawsuits against the DOE seeking recovery of actual damages
incurred in the years following 2001 and 2002.
2. Connecticut MGP Cost Recovery
In September 2006, CL&P and Yankee Gas (the NU Companies) filed a complaint against UGI Utilities, Inc. (UGI) in the U.S. District
Court for the District of Connecticut seeking past and future remediation costs related to historic manufactured gas plant (MGP)
operations on thirteen sites currently or formerly owned by the NU Companies (Yankee Gas is responsible for ten of the sites, CL&P for
two of the sites, and both companies share responsibility for one site) in a number of different locations throughout the State of
Connecticut. The NU Companies allege that UGI controlled operations of the plants at various times throughout the period 1883 to
1941, when UGI was forced to divest its interests. Investigations and remediation expenditures at the sites to date total over $20
million, and projected potential remediation costs for all sites, based on litigation modeling assumptions, could total as much as $232
million. A trial was held in April 2009.
On May 22, 2009, the court granted judgment in favor of the NU Companies with respect to the Waterbury-North site, and granted
judgment in favor of UGI with respect to the remaining sites. On June 19, 2009, the NU Companies filed a Notice of Appeal with
respect to the court’s decision. Any recovery resulting from the case (following the appeal) would flow back to the NU Companies’
customers, and the NU companies would continue to seek recovery as appropriate of remediation and other associated costs with
regard to the sites for which no recovery from UGI will be forthcoming.
3. Other Legal Proceedings
For further discussion of legal proceedings see the following sections of Item 1, Business – "Regulated Electric Distribution," "-
Regulated Gas Operations," and "- Regulated Electric Transmission" for information about various state regulatory and rate
proceedings, civil lawsuits related thereto, and information about proceedings relating to power, transmission and pricing issues; "-
Nuclear Decommissioning" for information related to high-level nuclear waste; and "- Other Regulatory and Environmental Matters" for
information about proceedings involving surface water and air quality requirements, toxic substances and hazardous waste, EMF,
licensing of hydroelectric projects, and other matters. In addition, see Item 1A, Risk Factors, for general information about several
significant risks.
EXECUTIVE OFFICERS OF THE REGISTRANT
The following table sets forth the executive officers of NU as of February 25, 2010. All of the Company’s officers serve terms of one
year and until their successors are elected and qualified:
Name Age Title
Jay S. Buth* 40 Vice President – Accounting and Controller.
Gregory B. Butler 52 Senior Vice President and General Counsel.
Jean M. LaVecchia** 58 Vice President - Human Resources of Northeast Utilities Service Company
(NUSCO), a subsidiary of NU.
David R. McHale 49 Executive Vice President and Chief Financial Officer of NU.
Leon J. Olivier 61 Executive Vice President and Chief Operating Officer of NU.
James B. Robb** 49 Senior Vice President, Enterprise Planning and Development of NUSCO.
Charles W. Shivery 64 Chairman of the Board, President and Chief Executive Officer of NU.
* Mr. Buth was elected Vice President – Accounting and Controller, effective June 9, 2009.
** Deemed executive officer of NU pursuant to Rule 3b-7 under the Securities Exchange Act of 1934.