Eversource 2010 Annual Report Download - page 49

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Liquidity
Consolidated: Cash and cash equivalents totaled $23.4 million as of December 31, 2010, compared with $27 million as of
December 31, 2009.
NU subsidiaries issued a total of $145 million in long-term debt in 2010. On March 8, 2010, WMECO issued $95 million of senior
unsecured notes due March 1, 2020 carrying a coupon rate of 5.1 percent. On April 22, 2010, Yankee Gas issued $50 million of first
mortgage bonds through a private placement with a maturity date of April 1, 2020 carrying a coupon rate of 4.87 percent. The proceeds
from these financings were used to repay short-term borrowings incurred in the ordinary course of business and to fund ongoing capital
investment programs.
On April 1, 2010, CL&P remarketed $62 million of tax-exempt PCRBs that were subject to a mandatory tender on April 1, 2010. The
PCRBs, which mature on May 1, 2031, carry a coupon rate of 1.4 percent for a one-year period and are subject to a mandatory tender
for purchase on April 1, 2011, at which time CL&P expects to remarket them.
On November 1, 2010, the DPUC approved CL&P's application requesting authority to issue up to $900 million in long-term debt
through 2014. Proceeds will be used to refinance CL&P's short-term debt previously incurred in the ordinary course of business, to
finance capital expenditures, to provide working capital and to pay issuance costs.
On November 10, 2010, the DPUC approved Yankee Gas’ application to issue up to $300 million in long-term debt through 2014.
Proceeds will be used to refinance Yankee Gas’ short-term debt previously incurred in the ordinary course of business, to refinance its
Series G first mortgage bonds due in 2014, to finance capital expenditures, to provide working capital and to pay issuance costs.
On November 12, 2010, PSNH filed an application with the NHPUC requesting authority to issue securities for the purpose of
refinancing certain series of PCRBs totaling $209 million. A public hearing for this application was held February 4, 2011 and a
decision is pending.
On December 17, 2010, the NHPUC authorized PSNH to issue up to $160 million of long-term debt through 2011. Proceeds will be
used to refinance PSNH's short-term debt previously incurred in the ordinary course of business, to finance capital expenditures, to
provide working capital and to pay issuance costs.
On January 28, 2011, the DPU authorized WMECO to issue up to $330 million in long-term debt through December 31, 2012 to be
used to refinance WMECO’s short-term debt previously incurred in the ordinary course of business, to finance capital expenditures, to
provide working capital and to pay issuance costs.
On September 24, 2010, CL&P, PSNH, WMECO, and Yankee Gas jointly entered into a three-year $400 million unsecured revolving
credit facility, which expires on September 24, 2013. This facility replaced a five-year $400 million credit facility on similar terms and
conditions that was scheduled to expire on November 6, 2010. CL&P and PSNH are each able to draw up to $300 million under this
facility, and WMECO and Yankee Gas are each able to draw up to $200 million, subject to the $400 million maximum aggregate
borrowing limit. This total commitment may be increased to $500 million at the request of the borrowers, subject to lender approval.
Under this facility, each company can borrow either on a short-term or a long-term basis, subject to regulatory approval. As of
December 31, 2010, PSNH had $30 million of short-term borrowings outstanding under this facility, leaving $370 million of aggregate
borrowing capacity available. The weighted-average interest rate on these short-term borrowings as of December 31, 2010 was 2.05
percent, which is based on a variable rate plus an applicable margin based on PSNH's credit ratings.
On September 24, 2010, NU parent entered into a three-year $500 million unsecured revolving credit facility, which expires on
September 24, 2013. This facility replaced a five-year $500 million credit facility on similar terms and conditions that was scheduled to
expire on November 6, 2010. Like the previous facility, the new revolving credit facility allows NU parent to borrow up to $500 million at
any one time on a short-term or long-term basis and allows for the issuance of LOCs up to $500 million in the aggregate (net of the
amount of borrowings then outstanding) on behalf of NU or any of its subsidiaries for periods up to 364 days. This total commitment
may be increased to $600 million at the request of NU parent, subject to lender approval. As of December 31, 2010, NU parent had
$32.1 million of LOCs issued primarily for the benefit of PSNH and $237 million of short-term borrowings outstanding, leaving $230.9
million of borrowing capacity available. The weighted-average interest rate on these short-term borrowings as of December 31, 2010
was 2.85 percent, which is based on a variable rate plus an applicable margin based on NU parent's credit ratings.
Our credit facilities and indentures require that NU parent and certain of its subsidiaries, including CL&P, PSNH and WMECO, comply
with certain financial and non-financial covenants as are customarily included in such agreements, including a consolidated debt to total
capitalization ratio. As of December 31, 2010, all such companies were in compliance with these covenants. Refer to Note 8, "Short-
Term Debt," and Note 9, "Long-Term Debt," to our consolidated financial statements included in this Annual Report on Form 10-K for
further discussion of material terms and conditions of these agreements.
In 2011, in addition to remarketing the CL&P $62 million PCRBs, we expect to issue approximately $260 million of long-term debt
comprised of $160 million by PSNH and $100 million by WMECO in the second half of 2011. We have annual sinking fund
requirements of $4.3 million continuing in 2011 through 2012, the mandatory tender of $62 million of tax-exempt PCRBs by CL&P on
April 1, 2011, at which time CL&P expects to remarket the bonds in the ordinary course, and no debt maturities until April 1, 2012. In
light of the 2010 Tax Act and the related cash flow benefits, we are currently reevaluating the timing of our previously planned NU