Eversource 2010 Annual Report Download - page 57

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$6.5 million, which includes the remaining uncollected portions from previous filings. On November 10, 2010, the DPUC issued a final
decision accepting CL&P's calculations of GSC, bypassable FMCC and nonbypassable FMCC revenues and expenses for the period
July 1, 2009 through December 31, 2009. On August 5, 2010, CL&P filed with the DPUC its semi-annual FMCC filing for the period
January 1, 2010 through June 30, 2010. The filing identified a total net underrecovery of $7 million for the period, which includes the
remaining uncollected portions from previous filings. On January 6, 2011, the DPUC issued a decision accepting CL&P's calculations
of GSC, bypassable FMCC and nonbypassable FMCC revenues and expenses for the period January 1, 2010 through June 30, 2010.
On February 4, 2011, CL&P filed with the DPUC its semi-annual filing, which reconciled actual FMCC revenues and charges and GSC
revenues and expenses, for the period July 1, 2010 through December 31, 2010, and also included the previously filed revenues and
expenses for the January 1, 2010 through June 30, 2010 period. The filing identified a total net overrecovery of $0.3 million, which
includes the remaining uncollected portions from previous filings. We do not expect the outcome of the DPUC's review of this filing to
have a material adverse impact on CL&P's financial position, results of operations or cash flows.
Procurement Fee Rate Proceedings: In prior years, CL&P submitted to the DPUC its proposed methodology to calculate the variable
incentive portion of its transition service procurement fee, which was effective for the years 2004, 2005 and 2006, and requested
approval of the pre-tax $5.8 million 2004 incentive fee. CL&P has not recorded amounts related to the 2005 and 2006 procurement fee
in earnings. CL&P recovered the $5.8 million pre-tax amount, which was recorded in 2005 earnings, through a CTA reconciliation
process. On January 15, 2009, the DPUC issued a final decision in this docket reversing its December 2005 draft decision and stated
that CL&P was not eligible for the procurement incentive compensation for 2004. A $5.8 million pre-tax charge (approximately $3.5
million net of tax) was recorded in the 2008 earnings of CL&P, and an obligation to refund the $5.8 million to customers was established
as of December 31, 2008. CL&P filed an appeal of this decision on February 26, 2009. On February 4, 2010, the Connecticut Superior
Court reversed the DPUC decision. The Court remanded the case back to the DPUC for the correction of several specific errors. On
February 22, 2010, the DPUC appealed the Connecticut Superior Court’s February 4, 2010 decision to the Connecticut Appellate Court,
which then transferred the appeal to the Connecticut Supreme Court. A decision is expected from the Connecticut Supreme Court in
late 2011 or early 2012.
Connecticut - Yankee Gas
Distribution Rates: On January 7, 2011, Yankee Gas filed an application with the DPUC to increase its distribution rates by $32.8
million, or 7.3 percent, to be effective July 1, 2011, and by an additional $13 million, or 2.8 percent, to be effective July 1, 2012. Among
other items, Yankee Gas requested to maintain its current authorized regulatory ROE of 10.1 percent, that $57.6 million of costs
associated with the WWL Project be placed into rates, and a substantial increase in capital funding to replace bare steel and cast iron
pipe throughout its natural gas distribution system. A final decision is expected in June 2011.
New Hampshire:
Distribution Rates: On June 28, 2010, the NHPUC approved a joint settlement agreement of PSNH’s permanent distribution rate case,
effective July 1, 2010, reached in April 2010 among PSNH, the NHPUC staff and the Office of Consumer Advocate. Under the
agreement, the settling parties agreed to a net annualized distribution rate increase of $45.5 million, effective July 1, 2010, and
annualized distribution rate adjustments projected to be a decrease of $2.9 million and increases of $9.5 million and $11.1 million on
July 1 of each of the three subsequent years. The $45.5 million increase was in addition to the $25.6 million temporary increase that
became effective August 1, 2009 and includes $13.7 million to reconcile the difference between the temporary rates and the permanent
rates back to August 1, 2009. The projected decrease of $2.9 million on July 1, 2011 reflects primarily the end of the one year recovery
of the $13.7 million reconciliation on that date. PSNH also agreed not to file a new distribution rate request prior to July 1, 2015.
During the term of the settlement, PSNH’s ability to propose changes to its permanent distribution rate level will be limited to situations
where its 12-month distribution ROE falls below 7 percent for two consecutive quarters or certain specified external events occur, as
described in the settlement. If PSNH's 12-month distribution ROE rolling average is greater than 10 percent, anything over the 10
percent level will be allocated 75 percent to customers and 25 percent to PSNH. The settlement also provided that the authorized
regulatory ROE on distribution only plant will continue at the previously allowed level of 9.67 percent.
ES and SCRC Filings: On June 11, 2010, PSNH petitioned the NHPUC to change the 2010 ES and SCRC rates. On June 28, 2010,
the NHPUC issued orders approving ES and SCRC rates of 8.78 cents per KWh and 1.20 cents per KWh, respectively, effective July 1,
2010. On September 21, 2010, PSNH filed petitions with the NHPUC requesting changes in both its ES and SCRC annual rates for the
period January 1, 2011 through December 31, 2011. On December 16, 2010, PSNH submitted final proposed ES and SCRC rates of
8.67 cents per KWh and 1.17 cents per KWh, respectively. On December 29, 2010, the NHPUC issued orders approving the ES and
SCRC rate petitions as filed.
TCAM Filing: On June 3, 2010, PSNH filed a petition with the NHPUC requesting reconciliation of the TCAM revenues and costs for
2009, and recovery of forecasted retail transmission costs for the period July 1, 2010 through June 30, 2011. On June 11, 2010, PSNH
petitioned the NHPUC for a TCAM rate of 1.501 cents per KWh. On June 28, 2010, the NHPUC issued an order approving the TCAM
rate as filed.
ES and SCRC Reconciliation: On an annual basis, PSNH files with the NHPUC an ES/SCRC cost reconciliation filing for the preceding
year. On April 30, 2010, PSNH filed its 2009 ES/SCRC reconciliation with the NHPUC, whose evaluation includes a prudence review of
PSNH's generation and power purchase activities. As of December 31, 2009 PSNH had an ES regulatory asset and an SCRC
regulatory asset of $4.4 million and $3.9 million, respectively, which is being recovered from customers in the 2010 ES/SCRC rate
period.