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113
13. LEASES
Various NU subsidiaries, including CL&P, PSNH and WMECO, have entered into lease agreements, some of which are capital leases,
for the use of data processing and office equipment, vehicles, and office space. In addition, CL&P, PSNH and WMECO incur costs
associated with leases entered into by NUSCO and RRR. These costs are included below in CL&P, PSNH and WMECO's operating
lease payments charged to expense and amounts capitalized as well as future operating lease payments from 2011 through 2015 and
thereafter. These amounts are eliminated on an NU consolidated basis. The provisions of these lease agreements generally contain
renewal options. Certain lease agreements contain contingent lease payments. The contingent lease payments are based on various
factors, such as the commercial paper rate plus a credit spread or the consumer price index.
For the years ended December 31, 2010, 2009, and 2008, rental payments made on capital leases, interest included in capital lease
payments, and capital lease asset amortization were as follows:
(Millions of Rental Payments Interest Asset Amortization
Dollars) NU CL&P PSNH NU CL&P PSNH NU CL&P PSNH
2010 $ 2.5 $ 1.9 $ 0.5 $ 1.8 $ 1.5 $ 0.3 $ 0.7 $ 0.4 $ 0.2
2009 2.6 1.9 0.5 1.9 1.6 0.3 0.6 0.3 0.2
2008 2.5 2.1 0.4 1.8 1.7 0.1 0.7 0.4 0.3
There was a de minimis amount of capital leases held by WMECO in 2010, 2009, and 2008.
For the years ended December 31, 2010, 2009 and 2008, operating lease rental payments charged to expense and the capitalized
portion of operating lease payments were as follows:
Expensed Capitalized
(Millions of Dollars) NU CL&P PSNH WMECO NU CL&P PSNH WMECO
2010 $ 11.9 $ 10.0 $ 2.2 $ 2.6 $ 4.8 $ 3.8 $ 0.1 $ 0.1
2009 18.1 12.8 3.9 3.4 9.7 6.1 1.5 1.1
2008 19.1 12.7 4.1 3.8 10.8 6.8 1.8 1.3
Future minimum rental payments excluding executory costs, such as property taxes, state use taxes, insurance, and maintenance,
under long-term noncancelable leases, as of December 31, 2010 are as follows:
Capital Leases
(Millions of Dollars) NU CL&P PSNH
2011 $ 2.5 $ 1.9 $ 0.5
2012 2.6 2.0 0.5
2013 2.4 2.0 0.4
2014 2.0 1.8 0.2
2015 2.0 1.8 0.2
Thereafter 11.4 11.3 0.1
Future minimum lease payments 22.9 20.8 1.9
Less amount representing interest 10.7 10.2 0.5
Present value of future minimum lease payments $ 12.2 $ 10.6 $ 1.4
Operating Leases
(Millions of Dollars) NU CL&P PSNH WMECO
2011 $ 7.9 $ 7.2 $ 2.0 $ 3.0
2012 7.0 6.8 1.8 2.9
2013 6.8 6.7 1.7 2.8
2014 4.9 6.5 1.7 1.3
2015 4.5 6.5 1.7 0.9
Thereafter 19.1 23.0 5.3 2.6
Future minimum lease payments $ 50.2 $ 56.7 $ 14.2 $ 13.5
In November 2008, the lessor of CL&P, PSNH, WMECO and Yankee Gas' vehicle/equipment master lease agreements notified the
companies that it was electing to terminate the lease agreements as permitted under the termination clause of the agreements. The
remaining payments under the agreements were made in 2009 for PSNH and WMECO and January 2011 for CL&P and Yankee Gas.
CL&P entered into certain contracts for the purchase of energy that qualify as leases. These contracts do not have minimum lease
payments and therefore are not included in the tables above. See Note 12C, "Commitments and Contingencies - Long-Term
Contractual Arrangements," to the consolidated financial statements for further information regarding these contracts.