Eversource 2010 Annual Report Download - page 64

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RESULTS OF OPERATIONS – NORTHEAST UTILITIES AND SUBSIDIARIES
The following table provides the amounts and variances in operating revenues and expense line items for the consolidated statements
of income for NU included in this Annual Report on Form 10-K for the years ended December 31, 2010, 2009 and 2008:
Comparison of 2010 to 2009:
Revenues and Expenses
For the Years Ended December 31,
(Millions of Dollars) 2010 2009
Increase/
(Decrease) Percent
Operating Revenues $ 4,898.2 $ 5,439.4 $ (541.2) (9.9) %
Operating Expenses:
Fuel, Purchased and Net Interchange Power 1,985.6 2,629.6 (644.0) (24.5)
Other Operating Expenses 958.4 1,001.2 (42.8) (4.3)
Maintenance 210.3 234.2 (23.9) (10.2)
Depreciation 300.7 309.6 (8.9) (2.9)
Amortization of Regulatory Assets, Net 95.7 13.3 82.4 (a)
Amortization of Rate Reduction Bonds 232.9 217.9 15.0 6.9
Taxes Other Than Income Taxes 314.7 282.2 32.5 11.5
Total Operating Expenses 4,098.3 4,688.0 (589.7) (12.6)
Operating Income $ 799.9 $ 751.4 $ 48.5 6.5 %
(a) Percent greater than 100 percent not shown as it is not meaningful.
Operating Revenues
For the Years Ended December 31,
(Millions of Dollars)
2010 2009
Increase/
(Decrease) Percent
Electric Distribution $ 3,802.0 $ 4,358.4 $ (556.4) (12.8) %
Natural Gas Distribution 434.3 449.6 (15.3) (3.4)
Total Distribution 4,236.3 4,808.0 (571.7) (11.9)
Transmission 625.6 577.9 47.7 8.3
Total Regulated Companies 4,861.9 5,385.9 (524.0) (9.7)
Competitive Businesses 80.3 81.3 (1.0) (1.2)
Other and Eliminations (44.0) (27.8) (16.2) (58.3)
NU $ 4,898.2 $ 5,439.4 $ (541.2) (9.9) %
A summary of our retail electric sales and firm natural gas sales were as follows:
For the Years Ended December 31,
2010 2009
Increase/
(Decrease) Percent
Retail Electric Sales in GWh 34,230 33,645 585 1.7 %
Firm Natural Gas Sales in Million Cubic Feet 43,251 42,450 801 1.9 %
Our Operating Revenues decreased in 2010, as compared to 2009, due primarily to:
• Lower electric distribution revenues related to the portions that are included in regulatory commission approved tracking
mechanisms that recover certain incurred costs and do not impact earnings. The tracked electric distribution revenues decreased
due primarily to lower generation service and related congestion charges ($574 million) and lower CL&P delivery-related FMCC
($39 million), partially offset by higher retail transmission revenues ($66 million) and higher transition cost recoveries ($48 million).
The tracking mechanisms allow for rates to be changed periodically with overcollections refunded to customers or undercollections
recovered from customers in future periods. In addition, Regulated companies revenues that eliminate in consolidation decreased
by $92 million.
• The portion of electric distribution revenues that impacts earnings increased $40 million due primarily to a 1.7 percent increase in
retail electric sales due to warmer than normal summer weather and PSNH's rate changes that were effective July 1, 2010. A
decrease in natural gas revenues was due primarily to lower cost of fuel, as fuel costs are fully recovered in revenues from sales to
our customers, offset by an increase in sales volume. Firm natural gas sales increased 1.9 percent in 2010 compared to 2009.
• Improved transmission segment revenues resulting from a higher level of investment in this segment and the return of higher
overall expenses, which are tracked and result in a related increase in revenues. The increase in expenses is directly related to
the increase in transmission plant, including costs associated with higher property taxes, depreciation and operation and
maintenance expenses.