Eversource 2010 Annual Report Download - page 30

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believe is, based upon currently available information, our estimated environmental investigation and/or remediation costs for waste
disposal sites for which we expect to bear legal liability. We continue to evaluate the environmental impact of our former disposal
practices. Under federal and state law, government agencies and private parties can attempt to impose liability on us for these
practices. At December 31, 2010, the liability recorded by us for our reasonably estimable and probable environmental remediation
costs for known sites needing investigation and/or remediation, exclusive of recoveries from insurance or from third parties, was
approximately $37.1 million, representing 58 sites. These costs could be significantly higher if remediation becomes necessary or
when additional information as to the extent of contamination becomes available.
The most significant liabilities currently relate to future clean up costs at former MGP facilities. These facilities were owned and
operated by our predecessor companies from the mid-1800's to mid-1900's. By-products from the manufacture of gas using coal
resulted in fuel oils, hydrocarbons, coal tar, purifier wastes, metals and other waste products that may pose risks to human health and
the environment. We, through our subsidiaries, currently have partial or full ownership responsibilities at 28 former MGP sites.
HWP, a wholly-owned subsidiary of NU, is continuing to evaluate additional potential remediation requirements at a river site in
Massachusetts containing tar deposits associated with an MGP site that HWP sold to HG&E, a municipal electric utility, in 1902.
HWP is at least partially responsible for this site and has already conducted substantial investigative and remediation activities. HWP's
share of the remediation costs related to this site is not recoverable from customers.
Electric and Magnetic Fields
For more than twenty years, published reports have discussed the possibility of adverse health effects from EMF associated with
electric transmission and distribution facilities and appliances and wiring in buildings and homes. Although weak health risk
associations reported in some epidemiology studies remain unexplained, most researchers, as well as numerous scientific review
panels, considering all significant EMF epidemiology and laboratory studies, have concluded that the available body of scientific
information does not support the conclusion that EMF affects human health.
We have closely monitored research and government policy developments for many years and will continue to do so. In accordance
with recommendations of various regulatory bodies and public health organizations, we reduce EMF associated with new transmission
lines by the use of designs that can be implemented without additional cost or at a modest cost. We do not believe that other capital
expenditures are appropriate to minimize unsubstantiated risks.
Global Climate Change and Greenhouse Gas Emission Issues
Global climate change and greenhouse gas emission issues have received an increased focus from state governments and the federal
government, particularly in recent years. The EPA has initiated a rulemaking addressing greenhouse gas emissions and, on
December 7, 2009, issued a finding that concluded that greenhouse gas emissions are "air pollution" and endanger public health and
welfare and should be regulated. The largest source of greenhouse gas emissions in the U.S. is the electricity generating sector. The
EPA has mandated GHG emission reporting beginning in 2012 for 2011 emissions for certain aspects of our business including
stationary combustion, volume of gas supplied to large customers and fugitive emissions of SF-6 gas and methane.
We are continually evaluating the risks presented by climate change concerns and issues. Such concerns could potentially lead to
additional rules and regulations that impact how we operate our business, both in terms of the generating facilities we own and operate
as well as general utility operations. (See "Air Quality Requirements" in this section for information concerning RGGI) These could
include federal "cap and trade" laws, or regulations requiring additional capital expenditures at our generating facilities. In addition,
such rules or regulations could potentially impact the prices we pay for goods and services provided by companies directly affected by
such rules or regulations. We would expect that any costs of these rules and regulations would be recovered from customers, but such
costs could impact energy use by our customers.
Global climate change could potentially impact weather patterns such as increasing the frequency and severity of storms or altering
temperatures. These changes could affect our facilities and infrastructure and could also impact energy usage by our customers.
FERC Hydroelectric Project Licensing
Federal Power Act licenses may be issued for hydroelectric projects for terms of 30 to 50 years as determined by the FERC. Upon the
expiration of an existing license, (i) the FERC may issue a new license to the existing licensee, or (ii) the United States may take over
the project or (iii) the FERC may issue a new license to a new licensee, upon payment to the existing licensee of the lesser of the fair
value or the net investment in the project, plus severance damages, less certain amounts earned by the licensee in excess of a
reasonable rate of return.
PSNH owns nine hydroelectric generating stations with a current claimed capability representing winter rates of approximately 71 MW,
eight of which are licensed by the FERC under long-term licenses that expire on varying dates from 2017 through 2047. PSNH and its
hydroelectric projects are subject to conditions set forth in such licenses, the Federal Power Act and related FERC regulations,
including provisions related to the condemnation of a project upon payment of just compensation, amortization of project investment
from excess project earnings, possible takeover of a project after expiration of its license upon payment of net investment and
severance damages and other matters.