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VYNPC: CL&P, PSNH, and WMECO have commitments to buy approximately 9.5 percent, 4 percent, and 2.5 percent (16 percent in
the aggregate for NU), respectively, of the Vermont Yankee Nuclear Power Corporation (VYNPC) plant's output through March 2012 at
a range of fixed prices. CL&P, PSNH, and WMECO's total cost of purchases under contracts with VYNPC amounted to $16 million,
$6.7 million, and $4.2 million, respectively, in 2010, $17.5 million, $7.3 million, and $4.6 million, respectively, in 2009, and $15.7 million,
$6.6 million, and $4.2 million, respectively, in 2008 ($26.9 million in 2010, $29.4 million in 2009 and $26.5 million in 2008 in the
aggregate for NU).
Supply/Stranded Cost Contracts/Obligations: CL&P and PSNH have various IPP contracts or purchase obligations for electricity,
including payment obligations resulting from the buydown of electricity purchase contracts. Excluding renewable and CfD contracts,
which are discussed below, such contracts extend through 2024 for CL&P. At PSNH such contracts extend through 2023. The total
cost of purchases and obligations under these contracts/obligations amounted to $196.2 million, ($151.3 million for CL&P, $42.6 million
for PSNH, and $2.3 million for WMECO) in 2010, $205.3 million, ($173.1 million for CL&P, $29.8 million for PSNH, and $2.4 million for
WMECO) in 2009, and $237.6 million ($200.5 million for CL&P, $34.6 million for PSNH, and $2.5 million for WMECO) in 2008.
In addition, CL&P and UI have entered into four CfDs for a total of approximately 787 MW of capacity with three generation projects
being built or modified and one demand response project. The capacity CfDs extend through 2026 and obligate the utilities to pay the
difference between a set price and the value that the projects receive in the ISO-NE markets. The contracts have terms of up to 15
years beginning in 2009 and are subject to a sharing agreement with UI, whereby UI will share 20 percent of the costs and benefits of
these contracts. CL&P's portion of the costs and benefits of these contracts will be paid by or refunded to CL&P's customers. The
information in the table above includes 100 percent of the payments projected as of December 31, 2010 under the contracts entered
into by CL&P and 80 percent of the payments projected under the contracts entered into by UI. The amounts of these payments are
subject to changes in capacity and forward reserve prices that the projects receive in the ISO-NE capacity markets. On February 7,
2010, an explosion occurred at the construction site of Kleen Energy Systems, LLC's 620 MW generation project with which CL&P has
a CfD. This event could delay or change CL&P's estimated payments under the CfD contract.
These amounts do not include contractual commitments related to CL&P's standard or last resort service or WMECO's default service,
both of which represent contractual commitments that are conditional upon CL&P and WMECO customers' use of energy, and PSNH's
short-term power supply management.
Renewable Energy Contracts: CL&P has entered into various agreements to purchase energy, capacity and renewable energy credits
from renewable energy facilities. Amounts payable under these contracts are subject to a sharing agreement with UI, whereby UI will
share approximately 20 percent of the costs and benefits of these contracts. In addition, UI has entered into contracts that are subject
to this cost sharing agreement under which CL&P will share in approximately 80 percent of the costs and benefits of the contract. The
information in the table above includes 100 percent of the payments projected under the contracts entered into by CL&P and 80 percent
of the payments projected under the contracts entered into by UI. CL&P's portion of the costs and benefits of these contracts will be
paid by or refunded to CL&P's customers.
Peaker CfDs: In 2008, CL&P entered into three CfDs with developers of peaking generation units approved by the DPUC (Peaker
CfDs). These units will have a total of approximately 500 MW of peaking capacity. As directed by the DPUC, CL&P and UI have
entered into a sharing agreement, whereby CL&P is responsible for 80 percent and UI for 20 percent of the net costs or benefits of
these CfDs. The Peaker CfDs pay the developer the difference between capacity, forward reserve and energy market revenues and a
cost-of-service payment stream for 30 years. The information in the table above includes 100 percent of the estimated payments
projected under the contracts, before reimbursement from UI under the sharing agreement. The ultimate cost or benefit to CL&P under
these contracts will depend on the costs of plant construction and operation and the prices that the projects receive for capacity and
other products in the ISO-NE markets. CL&P's portion of the amounts paid or received under the Peaker CfDs will be recoverable from
or refunded to CL&P's customers.
Natural Gas Procurement Contracts: Yankee Gas has entered into long-term contracts for the purchase of natural gas in the normal
course of business as part of its portfolio of supplies. These contracts extend through 2022. The total cost of Yankee Gas'
procurement portfolio, including these contracts, amounted to $209.5 million in 2010, $236.3 million in 2009 and $352.5 million in 2008.
Wood, Coal and Transportation Contracts: PSNH has entered into various arrangements for the purchase of wood, coal and the
transportation services for fuel supply for its electric generating assets. PSNH's fuel and natural gas costs, excluding emissions
allowances, amounted to approximately $168.3 million in 2010, $156.7 million in 2009 and $165.4 million in 2008.
PNGTS Pipeline Commitments: PSNH has a contract for capacity on the Portland Natural Gas Transmission System (PNGTS) pipeline
that extends through 2018. The cost under this contract amounted to $2.8 million in 2010, $1.6 million in 2009 and $1.5 million in 2008.
These costs are not recovered from PSNH's retail customers.
Transmission Support Commitments: Along with other New England utilities, CL&P, PSNH and WMECO entered into agreements in
1985 to support transmission and terminal facilities that were built to import electricity from the Hydro-Québec system in Canada.
CL&P, PSNH and WMECO are obligated to pay, over a 30-year period ending in 2020, their proportionate shares of the annual
operation and maintenance expenses and capital costs of those facilities. CL&P, PSNH and WMECO's total cost of these agreements
amounted to $10.8 million, $5.8 million and $2.3 million, respectively, in 2010, $10.7 million, $5.7 million and $2.2 million, respectively,
in 2009, and $10.5 million, $5.6 million and $2.2 million, respectively, in 2008 ($18.9 million in 2010, $18.6 million in 2009 and $18.3
million in 2008 in the aggregate for NU).