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109
mechanism to recover environmental costs from its customers, and changes in WMECO's environmental reserves impact WMECO's
Net Income.
B. Spent Nuclear Fuel Disposal Costs (CL&P, WMECO)
Under the Nuclear Waste Policy Act of 1982, CL&P and WMECO must pay the DOE for the costs of disposal of spent nuclear fuel and
high-level radioactive waste for the period prior to the sale of their ownership shares in the Millstone nuclear power stations.
The DOE is responsible for the selection and development of repositories for, and the disposal of, spent nuclear fuel and high-level
radioactive waste. For nuclear fuel used to generate electricity prior to April 7, 1983 (Prior Period Spent Nuclear Fuel) for CL&P and
WMECO, an accrual has been recorded for the full liability, and payment must be made by CL&P and WMECO to the DOE prior to the
first delivery of spent fuel to the DOE. After the sale of Millstone, CL&P and WMECO remained responsible for their share of the
disposal costs associated with the Prior Period Spent Nuclear Fuel. Until such payment to the DOE is made, the outstanding liability
will continue to accrue interest at the 3-month treasury bill yield rate. Fees due to the DOE for the disposal of Prior Period Spent
Nuclear Fuel as of December 31, 2010 and 2009 are included in Long-Term Debt and were $301 million and $300.6 million ($243.8
million and $243.5 million for CL&P and $57.2 million and $57.1 million for WMECO), respectively, including accumulated interest costs
of $218.9 million and $218.5 million ($177.3 million and $177 million for CL&P and $41.6 million and $41.5 million for WMECO),
respectively.
In 2004, WMECO established a trust that holds marketable securities to fund amounts due to the DOE for the disposal of WMECO's
Prior Period Spent Nuclear Fuel. For further information on this trust, see Note 5, "Marketable Securities," to the consolidated financial
statements.
C. Long-Term Contractual Arrangements
Estimated Future Annual Costs: The estimated future annual costs of significant long-term contractual arrangements as of
December 31, 2010 are as follows:
NU
(Millions of Dollars) 2011 2012 2013 2014 2015 Thereafter Totals
VYNPC $ 30.2 $ 7.6 $ 0.2 $ - $ - $ - $ 38.0
Supply/Stranded Cost Contracts/Obligations 243.2 289.3 280.5 265.9 196.4 858.2 2,133.5
Renewable Energy Contracts 16.6 87.4 112.0 142.0 147.8 2,044.7 2,550.5
Peaker CfDs 27.7 54.0 60.6 63.6 62.9 297.4 566.2
Natural Gas Procurement Contracts 61.4 55.5 31.3 29.3 25.3 90.6 293.4
Wood, Coal and Transportation Contracts 118.5 116.9 10.1 - - - 245.5
PNGTS Pipeline Commitments 3.1 3.1 3.1 3.1 3.1 9.8 25.3
Transmission Support Commitments 20.6 20.4 20.3 19.8 20.7 103.4 205.2
Yankee Companies Billings 27.4 28.4 28.1 26.8 22.4 - 133.1
Select Energy Purchase Agreements 43.0 42.8 48.7 - - - 134.5
Clean Air Project Commitments 49.5 14.0 2.0 - - - 65.5
Totals $ 641.2 $ 719.4 $ 596.9 $ 550.5 $ 478.6 $ 3,404.1 $ 6,390.7
CL&P
(Millions of Dollars) 2011 2012 2013 2014 2015 Thereafter Totals
VYNPC $ 17.9 $ 4.5 $ 0.1 $ - $ - $ - $ 22.5
Supply/Stranded Cost Contracts/Obligations 191.4 238.1 233.0 216.1 159.5 728.2 1,766.3
Renewable Energy Contracts 16.6 87.4 112.0 142.0 147.8 2,044.7 2,550.5
Peaker CfDs 27.7 54.0 60.6 63.6 62.9 297.4 566.2
Transmission Support Commitments 11.8 11.6 11.6 11.3 11.8 59.2 117.3
Yankee Companies Billings 18.8 19.5 19.2 18.5 15.7 - 91.7
Totals $ 284.2 $ 415.1 $ 436.5 $ 451.5 $ 397.7 $ 3,129.5 $ 5,114.5
PSNH
(Millions of Dollars) 2011 2012 2013 2014 2015 Thereafter Totals
VYNPC $ 7.5 $ 1.9 $ 0.1 $ - $ - $ - $ 9.5
Supply/Stranded Cost Contracts/Obligations 51.8 51.2 47.5 49.8 36.9 130.0 367.2
Wood, Coal and Transportation Contracts 118.5 116.9 10.1 - - - 245.5
PNGTS Pipeline Commitments 3.1 3.1 3.1 3.1 3.1 9.8 25.3
Transmission Support Commitments 6.3 6.4 6.3 6.1 6.4 31.8 63.3
Yankee Companies Billings 3.4 3.6 3.6 3.2 2.3 - 16.1
Clean Air Project Commitments 49.5 14.0 2.0 - - - 65.5
Totals $ 240.1 $ 197.1 $ 72.7 $ 62.2 $ 48.7 $ 171.6 $ 792.4
WMECO
(Millions of Dollars) 2011 2012 2013 2014 2015 Thereafter Totals
VYNPC $ 4.7 $ 1.2 $ - $ - $ - $ - $ 5.9
Transmission Support Commitments 2.5 2.4 2.4 2.4 2.5 12.4 24.6
Yankee Companies Billings 5.2 5.3 5.3 5.1 4.4 - 25.3
Totals $ 12.4 $ 8.9 $ 7.7 $ 7.5 $ 6.9 $ 12.4 $ 55.8