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37
Strategic Initiatives: We continue to evaluate a number of development projects that will benefit our customers, some of which are
detailed below.
Over the past three years, we have participated in discussions with other utilities, policymakers, and prospective developers of
renewable energy projects in the New England region regarding a framework whereby renewable power projects built in rural areas of
northern New England could be connected to the electric load centers of New England. We believe there are significant opportunities
for developers to build wind and biomass projects in northern New England that could help the region meet its renewable portfolio
standards. We believe that a collaborative approach among project developers and transmission owners is necessary to be able to
construct needed projects and bring their electrical output into the market. We have not yet included any capital expenditures
associated with potential projects in our five-year capital program and these discussions are continuing.
On March 31, 2010, CL&P filed with the DPUC an AMI and dynamic pricing plan that included a cost benefit analysis. CL&P concluded
that a full deployment of AMI meters accompanied by dynamic pricing options for all CL&P customers would be cost beneficial under a
set of reasonable assumptions, identified as the "base case scenario." Under the base case scenario, capital expenditures associated
with the installation of the meters are estimated at $296 million, which are included in the Company's five-year capital program. Under
CL&P's proposal, installation of meters is proposed to begin in late 2012 and continue through 2016. The DPUC procedural review
began in late October 2010 and is scheduled to end in April 2011.
On October 16, 2009, WMECO filed its proposal for a dynamic pricing smart meter pilot program with the DPU. On July 27, 2010, the
DPU approved a settlement agreement between WMECO, the Attorney General and other stakeholders to postpone implementation of
a dynamic pricing smart meter pilot program until results of smart meter pilots conducted by three other Massachusetts utilities are
gathered and WMECO's meter data management system is operational. WMECO does not expect it will conduct a pilot program prior
to 2012.
Projected Capital Expenditures and Rate Base Estimates: Excluding the impacts of the proposed merger with NSTAR, a summary of
the projected capital expenditures for the Regulated companies' electric transmission segment and their distribution segment (including
generation) by company for 2011 through 2015, including our corporate service companies' capital expenditures on behalf of the
Regulated companies, is as follows:
Year
(Millions of Dollars) 2011 2012 2013 2014 2015
2011-2015
Total
CL&P transmission $ 137 $ 194 $ 169 $ 229 $ 280 $ 1,009
PSNH transmission 59 75 58 45 56 293
WMECO transmission 229 260 161 75 7 732
NPT 19 23 241 298 241 822
Subtotal transmission $ 444 $ 552 $ 629 $ 647 $ 584 $ 2,856
CL&P distribution:
Basic business $ 135 $ 146 $ 137 $ 218 $ 276 $ 912
Aging infrastructure 131 108 116 116 118 589
Load growth 71 66 65 78 75 355
Total CL&P distribution 337 320 318 412 469 1,856
PSNH distribution:
Basic business 49 48 48 51 52 248
Aging infrastructure 26 28 40 41 35 170
Load growth 38 41 39 40 45 203
Total PSNH distribution 113 117 127 132 132 621
WMECO distribution:
Basic business 15 16 16 17 17 81
Aging infrastructure 15 13 13 14 14 69
Load growth 6 10 10 9 9 44
Total WMECO distribution 36 39 39 40 40 194
Subtotal electric distribution $ 486 $ 476 $ 484 $ 584 $ 641 $ 2,671
PSNH generation:
Clean air project $ 77 $ 34 $ 22 $ - $ - $ 133
Other 35 18 30 29 29 141
Total PSNH generation 112 52 52 29 29 274
WMECO generation 22 9 5 5 5 46
Subtotal generation $ 134 $ 61 $ 57 $ 34 $ 34 $ 320
Yankee Gas distribution:
Basic business $ 37 $ 31 $ 30 $ 31 $ 33 $ 162
Aging infrastructure 30 48 50 51 52 231
Load growth 16 20 46 47 35 164
WWL project 30 - - - - 30
Total Yankee Gas distribution $ 113 $ 99 $ 126 $ 129 $ 120 $ 587
Corporate service companies $ 32 $ 28 $ 35 $ 34 $ 28 $ 157
Total $ 1,209 $ 1,216 $ 1,331 $ 1,428 $ 1,407 $ 6,591