Eversource 2010 Annual Report Download - page 5

To Our Shareholders:
Appropriately, we capped a year of achievement with
the next step in the evolution of NU. On October 18,
2010, we announced plans to merge with the Boston-
area electric and gas utility, NSTAR. This transaction is
a natural fit of two companies with adjacent geographic
footprints and similar strategic goals. It will create a
premier regional energy company serving nearly
3.5 million customers in three states. Once the merger
is complete, we will provide electricity and natural gas
to over half of the energy customers in New England.
Simply put, this combination provides a better platform
for us to deliver on our promise for future growth
than we would have been able to achieve on a stand-
alone basis. Our shareholders and NSTAR shareholders
overwhelmingly approved the merger on March 4, and
we expect to secure the necessary approvals to complete
this transaction in the second half of 2011.
Solid financial results
For our shareholders, we delivered improved financial
performance for the year with our continued control
over costs, strong operating results in all of our
segments, and by strategically deploying capital for
transmission and distribution investments.
In 2010, we delivered earnings per share of $2.19,
compared with $1.91 per share in 2009. Company
earnings totaled $387.9 million in 2010, compared
with $330.0 million in 2009.
In an economic environment that saw many companies
cut dividends, we increased our dividend at a faster pace
than the utility industry average. We raised our dividend
in early 2010 from an annualized rate of $0.95 per
share to $1.025 per share. In the first quarter of 2011,
we raised the dividend again to an annualized rate of
$1.10 per share. This was the eleventh consecutive year
we increased our dividend. Our total shareholder return
during 2010 was 28.3 percent, including our dividend.
In fact, our total return was the highest of all similar
companies in the Edison Electric Institute’s Index of
Shareholder-Owned Electric Utilities for five years
ended September 30, 2010.
Operational excellence
Within our operations, employees of NU and its
companies in Connecticut, Massachusetts and New
Hampshire kept the lights on and the gas flowing by
delivering excellent performance in 2010. We delivered
greater certainty for our customers and shareholders
by successfully completing multiple-year rate cases for
The Connecticut Light and Power Company (CL&P),
Public Service Company of New Hampshire (PSNH) and
Western Massachusetts Electric Company (WMECo).
And we delivered on our promise of value for Yankee
Gas Services Company (Yankee Gas) customers with
a capital plan that has reduced supply constraints and
enhanced safety and reliability.
We invested $1 billion to further upgrade, strengthen
and modernize our energy distribution and transmission
systems. Over the next five years, we expect to invest
an additional $6.6 billion in New England’s energy
infrastructure.
In 2010, we completed or advanced several major
infrastructure projects on time, on budget and safely,
once again demonstrating a level of operational
excellence and responsibility that sets us apart.
will create a premier regional energy company serving
nearly 3.5 million customers in three states
our proposed merger with NSTAR
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