Eversource 2009 Annual Report Download - page 74

65
We have implemented an Enterprise Risk Management (ERM) methodology for identifying the principal risks of the Company. ERM
involves the application of a well-defined, enterprise-wide methodology that enables our Risk and Capital Committee, comprised of our
senior officers, to oversee the identification, management and reporting of the principal risks of the business. However, there can be no
assurances that the ERM process will identify or manage every risk or event that could impact our financial condition or results of
operations. The findings of this process are periodically discussed with our Board of Trustees.
Additional quantitative and qualitative disclosures about market risk are set forth in Part II, Item 7, Management's Discussion and
Analysis of Financial Condition and Results of Operations, included in this Annual Report on Form 10-K.
Item 8. Financial Statements and Supplementary Data
NU, CL&P, PSNH and WMECO. The Consolidated Financial Statements of each of NU, CL&P, PSNH and WMECO, the
accompanying Combined Notes to the Consolidated Financial Statements, the Report of Independent Registered Public Accounting
Firm for each of NU, CL&P, PSNH and WMECO, and the respective Financial Statement Schedules filed as part of this Annual Report
on Form 10-K are listed under Item 15, Exhibits and Financial Statement Schedules and begin on page FS-1 immediately following the
signature pages of this Annual Report on Form 10-K.
Item 8A. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
No events that would be described in response to this item have occurred with respect to NU, CL&P, PSNH or WMECO.
Item 8B. Controls and Procedures
Management, on behalf of NU, CL&P, PSNH and WMECO, is responsible for the preparation, integrity, and fair presentation of the
accompanying Consolidated Financial Statements and other sections of this combined Annual Report on Form 10-K. NU, CL&P, PSNH
and WMECO’s internal controls over financial reporting were audited by Deloitte & Touche LLP.
Management, on behalf of NU, CL&P, PSNH and WMECO, is responsible for establishing and maintaining adequate internal controls
over financial reporting. The internal control framework and processes have been designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. There are inherent limitations of internal controls over financial reporting that could allow material
misstatements due to error or fraud to occur and not be prevented or detected on a timely basis by employees during the normal course
of business. Additionally, internal controls over financial reporting may become inadequate in the future due to changes in the business
environment. Under the supervision and with the participation of the principal executive officers and principal financial officer, an
evaluation of the effectiveness of internal controls over financial reporting was conducted based on criteria established in Internal
Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based
on this evaluation under the framework in COSO, management concluded that internal controls over financial reporting at NU, CL&P,
PSNH and WMECO were effective as of December 31, 2009.
Management, on behalf of NU, CL&P, PSNH and WMECO, undertook a separate evaluation of the design and operation of disclosure
controls and procedures to determine whether they are effective in ensuring that the disclosure of required information is made timely
and in accordance with the Exchange Act and the rules and forms of the SEC. This evaluation was made under management’s
supervision and with management’s participation, including the principal executive officers and principal financial officer, as of the end of
the period covered by this report on Form 10-K. The principal executive officers and principal financial officer have concluded, based
on their review, that the disclosure controls and procedures of NU, CL&P, PSNH and WMECO are effective to ensure that information
required to be disclosed by us in reports filed under the Exchange Act i) is recorded, processed, summarized, and reported within the
time periods specified in SEC rules and forms and ii) is accumulated and communicated to management, including the principal
executive officers and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
There have been no changes in internal controls over financial reporting for NU, CL&P, PSNH and WMECO during the quarter ended
December 31, 2009 that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting.
Item 9. Other Information
No information is required to be disclosed under this item as of December 31, 2009, as this information has been previously disclosed in
applicable reports on Form 8-K during the fourth quarter of 2009.