Eversource 2010 Annual Report Download - page 53

36
maintain the lines for CTMEEC. The transaction does not include the transfer of land or equipment not related to electric transmission
service. The transaction will not impact our five-year capital plan and is already reflected in CL&P’s transmission rate base forecasts.
Distribution Segment: Distribution segment capital expenditures increased by $81.4 million in 2010, as compared with 2009, due to
expenditures related primarily to the PSNH Clean Air Project, the WMECO solar generation project, and the Yankee Gas WWL Project.
A summary of distribution segment capital expenditures by company for 2010, 2009 and 2008 is as follows:
For the Years Ended December 31,
(Millions of Dollars) 2010 2009 2008
CL&P:
Basic business $ 126.2 $ 104.6 $ 114.7
Aging infrastructure 104.0 104.1 95.4
Load growth 75.2 74.3 86.5
Total CL&P 305.4 283.0 296.6
PSNH:
Basic business 41.2 55.5 41.6
Aging infrastructure 19.5 17.8 19.6
Load growth 23.1 25.5 37.0
Total PSNH 83.8 98.8 98.2
WMECO:
Basic business 17.5 21.5 18.1
Aging infrastructure 10.5 12.2 12.9
Load growth 5.1 4.0 6.8
Total WMECO 33.1 37.7 37.8
Totals - Electric Distribution (excluding Generation) 422.3 419.5 432.6
Yankee Gas 94.6 59.6 44.0
Other 2.0 0.6 0.5
Total Distribution 518.9 479.7 477.1
PSNH Generation:
Clean air project 149.7 119.3 24.8
Other 27.4 25.7 49.2
Total PSNH Generation 177.1 145.0 74.0
WMECO Generation 10.1 - -
Total Distribution Segment $ 706.1 $ 624.7 $ 551.1
For the electric distribution business, basic business includes the relocation of plant, the purchase of meters, tools, vehicles, and
information technology. Aging infrastructure relates to the planned replacement of overhead lines, plant substations, transformer
replacements, and underground cable replacement. Load growth includes requests for new business and capacity additions on
distribution lines and substation overloads. For the natural gas business, basic business includes the relocation of conflicting natural
gas facilities due to municipal and state road work and the purchase of meters, tools, and information technology. Aging infrastructure
relates to the planned replacement of natural gas facilities. Load growth includes requests for new natural gas service, new service
mains and new distributed generation service.
PSNH's Clean Air Project is a wet scrubber project under construction at its Merrimack coal station, the cost of which will be recovered
through PSNH's ES rates under New Hampshire law. Construction costs are running below their previously announced cost of $457
million and the project is expected to be completed in mid-2012, about a year ahead of schedule. We currently expect the project to
cost approximately $430 million, including capitalized interest and equity returns. Since inception of the project, PSNH has capitalized
$296.5 million associated with this project, of which $149.7 million was capitalized in 2010. Construction of the project was
approximately 80 percent complete as of December 31, 2010.
On August 12, 2009, the DPU approved a stipulation agreement between WMECO and the Massachusetts Attorney General
concerning WMECO's proposal, under the Massachusetts Green Communities Act, to install 6 MW of solar energy generation in its
service territory at an estimated cost of $41 million by the end of 2012. In October 2010, WMECO completed construction of a 1.8 MW
solar generation facility on a site in Pittsfield, Massachusetts. The full cost of this project was approximately $9.4 million, all of which
WMECO has capitalized as of December 31, 2010. On January 17, 2011, WMECO announced its plans to develop a second project
on a site in Springfield, Massachusetts. WMECO believes this site is capable of accommodating a 4.2 MW solar generation facility.
The major permitting and procurement activities for this project are underway and, assuming their favorable and timely completion,
WMECO would expect to begin construction during the second quarter of 2011.
In April 2010, Yankee Gas commenced construction of its WWL Project, a 16-mile natural gas pipeline between Waterbury and
Wallingford, Connecticut and the increase of vaporization output of its LNG plant. The project is now expected to cost $57.6 million,
down from our previously announced cost of approximately $63 million. Construction during 2010, which cost $26.6 million, included
the completion of Phase I, a seven-mile segment of pipeline connecting the Cheshire and Wallingford distribution systems, and four
miles of Phase II. The remainder of the Phase II pipeline construction (approximately five miles) and the expansion of the vaporization
capacity of the LNG facility are expected to be completed by the fourth quarter of 2011. Construction of the project was 46 percent
complete as of December 31, 2010 and is currently on schedule.