Eversource 2010 Annual Report Download - page 31

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Licensed operating hydroelectric projects are not generally subject to decommissioning during the license term in the absence of a
specific license provision that expressly permits the FERC to order decommissioning during the license term. However, the FERC has
taken the position that under appropriate circumstances it may order decommissioning of hydroelectric projects at relicensing or may
require the establishment of decommissioning trust funds as a condition of relicensing. The FERC may also require project
decommissioning during a license term if a hydroelectric project is abandoned, the project license is surrendered or the license is
revoked. PSNH is not presently encountering any of these challenges.
EMPLOYEES
As of December 31, 2010, we employed a total of 6,182 employees, excluding temporary employees, of which 1,847 were employed by
CL&P, 1,240 by PSNH, 354 by WMECO, 429 by Yankee Gas and 2,307 were employed by NUSCO. Approximately 2,212 employees
of CL&P, PSNH, WMECO, NUSCO and Yankee Gas are members of the International Brotherhood of Electrical Workers and The
United Steelworkers and are covered by 11 union agreements.
INTERNET INFORMATION
Our website address is www.nu.com. We make available through our website a link to the SEC's EDGAR website
(http://www.sec.gov/edgar/searchedgar/companysearch.html), at which site NU's, CL&P's, WMECO's and PSNH's Annual Reports on
Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to those reports may be reviewed.
Printed copies of these reports may be obtained free of charge by writing to our Investor Relations Department at Northeast Utilities, 56
Prospect Street, Hartford, CT 06103.
Item 1A. Risk Factors
In addition to the matters set forth under "Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995" included
directly prior to Item 1, Business, above, we are subject to a variety of significant risks. Our susceptibility to certain risks, including
those discussed in detail below, could exacerbate other risks. These risk factors should be considered carefully in evaluating our risk
profile.
The actions of regulators can significantly affect our earnings, liquidity and business activities.
The rates that our Regulated companies charge their respective retail and wholesale customers are determined by their state utility
commissions and by FERC. These commissions also regulate the companies’ accounting, operations, the issuance of certain
securities and certain other matters. FERC also regulates their transmission of electric energy, the sale of electric energy at wholesale,
accounting, issuance of certain securities and certain other matters. The commissions’ policies and regulatory actions could have a
material impact on the Regulated companies’ financial position, results of operations and cash flows.
Our transmission, distribution and generation systems may not operate as expected, and could require unplanned
expenditures, which could adversely affect our financial position, results of operations and cash flows.
Our ability to properly operate of our transmission, distribution and generation systems is critical to the financial performance of our
business. Our transmission, distribution and generation businesses face several operational risks, including the breakdown or failure of
or damage to equipment or processes (especially due to age); labor disputes; disruptions in the delivery of electricity, including impacts
on us or our customers; increased capital expenditure requirements, including those due to environmental regulation; information
security risk, such as a breach of our systems on which sensitive utility customer data and account information are stored; catastrophic
events such as fires, explosions, or other similar occurrences; and other unanticipated operations and maintenance expenses and
liabilities. The failure of our transmission, distributions and generation systems to operate as planned may result in increased capital
investments, reduced earnings or unplanned increases in operation and maintenance costs. At PSNH, outages at generating stations
may be deemed imprudent by state regulators resulting in disallowance of replacement power costs. Such costs that are not
recoverable from our customers would have an adverse effect on our financial position, results of operations and cash flows.
Limits on our access to and increases in the cost of capital may adversely impact our ability to execute our business plan.
We use short-term debt and the long-term capital markets as a significant source of liquidity and funding for capital requirements not
obtained from our operating cash flow. If access to these sources of liquidity becomes constrained, our ability to implement our
business strategy could be adversely affected. In addition, higher interest rates would increase our cost of borrowing, which could
adversely impact our results of operations. A downgrade of our credit ratings or events beyond our control, such as a disruption in
global capital and credit markets, could increase our cost of borrowing and cost of capital or restrict our ability to access the capital
markets and negatively affect our ability to maintain and to expand our businesses.
Our counterparties may not meet their obligations to us.
We are exposed to the risk that counterparties to various arrangements who owe us money, or have contracted to supply us with
energy, coal, or other commodities or services, or who work with us as strategic partners, including on significant capital projects, will
not be able to perform their obligations or, with respect to our credit facilities, fail to honor their commitments. Should any of these
counterparties fail to perform their obligations, we might be forced to replace the underlying commitment at higher market prices and/or