Eversource 2010 Annual Report Download - page 51

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March 1, 2011, which equates to $1.10 per share dividend on an annualized basis. This increase represented an approximately 7.3
percent increase over the previous dividend rate.
Assuming completion of our proposed merger with NSTAR and subject to the conditions in the merger agreement, our first quarterly
dividend per common share declared after the completion of the proposed merger will be increased to an amount that is equivalent,
after adjusting for the exchange ratio, to NSTAR's last quarterly dividend paid prior to the closing. Based on the last quarterly dividend
paid by NSTAR of $0.425 per share, and assuming there are no changes to such dividend prior to the closing of the merger, that would
result in NU’s quarterly dividend being increased by approximately 18 percent to approximately $0.325 per share, or approximately
$1.30 per share on an annualized basis.
Our ability to pay common dividends is subject to approval by our Board of Trustees and our future earnings and cash flow
requirements and may be limited by state statute, the leverage restrictions in our revolving credit agreement and the ability of our
subsidiaries to pay common dividends to NU parent. The Federal Power Act limits the payment of dividends by CL&P, PSNH and
WMECO to their respective retained earnings balances unless a higher amount is approved by FERC; PSNH is required to reserve an
additional amount of retained earnings under its FERC hydroelectric license conditions. In addition, relevant state statutes may impose
additional limitations on the payment of dividends by the Regulated companies. CL&P, PSNH, WMECO and Yankee Gas also are
parties to a revolving credit agreement that imposes leverage restrictions. We do not expect the restrictions to prevent NU from
meeting its obligations under the merger agreement.
In general, the Regulated companies pay approximately 60 percent of their earnings to NU parent in the form of common dividends. In
2010, CL&P, PSNH, WMECO, and Yankee Gas paid $217.7 million, $50.6 million, $14.9 million, and $18.8 million, respectively, in
common dividends to NU parent. In 2010, NU parent made equity contributions to CL&P, PSNH and WMECO of $2.5 million, $159
million and $102.5 million, respectively.
Cash capital expenditures included on the accompanying consolidated statements of cash flows and described in this "Liquidity" section
do not include amounts incurred on capital projects but not yet paid, cost of removal, AFUDC related to equity funds, and the
capitalized portions of pension and PBOP expense or income. A summary of our cash capital expenditures by company for the years
ended December 31, 2010, 2009 and 2008 is as follows:
For the Years Ended December 31,
(Millions of Dollars) 2010 2009 2008
CL&P $ 380.3 $ 435.7 $ 849.5
PSNH 296.3 266.4 238.9
WMECO 115.2 105.4 78.3
Yankee Gas 82.5 54.8 58.3
NPT 7.5 - -
Other 72.7 45.8 30.4
Total $ 954.5 $ 908.1 $ 1,255.4
The increase in our cash capital expenditures was the result of higher distribution segment capital expenditures of $66.3 million,
particularly at PSNH and Yankee Gas, and an increase in Other of $26.9 million primarily related to technology and facility projects at
NUSCO, one of our corporate service companies. These increases were offset by a $46.8 million decrease in transmission segment
capital expenditures primarily by CL&P.
Business Development and Capital Expenditures
Consolidated: Our consolidated capital expenditures, including amounts incurred but not paid, cost of removal, AFUDC, and the
capitalized portions of pension and PBOP expense or income (all of which are non-cash factors), totaled $1 billion in 2010, $969.2
million in 2009 and $1.3 billion in 2008. These amounts included $68.7 million in 2010, $52.7 million in 2009 and $33.2 million in 2008
related to our corporate service companies, NUSCO and RRR.
Regulated Companies: Capital expenditures for the Regulated companies totaled $967 million ($412.6 million for CL&P, $310 million
for PSNH, and $138.4 million for WMECO) in 2010.
Transmission Segment: Transmission segment capital expenditures decreased by $30.9 million in 2010, as compared with 2009, due
primarily to reductions in expenditures at CL&P and PSNH, partially offset by increases at WMECO and capital expenditures incurred
by NPT for the Northern Pass project. A summary of transmission segment capital expenditures by company in 2010, 2009 and 2008
is as follows:
For the Years Ended December 31,
(Millions of Dollars) 2010 2009 2008
CL&P $ 107.2 $ 163.0 $ 586.3
PSNH 49.1 59.4 81.9
WMECO 95.2 67.7 46.1
NPT 9.4 1.7 -
Total $ 260.9 $ 291.8 $ 714.3