Eversource 2010 Annual Report Download - page 65

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48
Fuel, Purchased and Net Interchange Power
Fuel, Purchased and Net Interchange Power decreased in 2010, as compared to 2009, due primarily to the following:
(Millions of Dollars)
2010
Increase/(Decrease)
as compared to 2009
Lower GSC supply costs, deferred fuel costs and other
purchased power costs at CL&P
$ (437.4)
An increased level of ES customer migration to third party
electric suppliers, partially offset by higher retail sales at
PSNH
(157.4)
Lower basic/default service supply costs at WMECO (34.9)
Lower prices on purchased natural gas, partially offset by a
lower net underrecovery in 2010 at Yankee Gas
(19.7)
Increased competitive businesses' expenses due primarily to
lower Select Energy mark-to-market gains
5.4
$ (644.0)
Other Operating Expenses
Other Operating Expenses decreased in 2010, as compared to 2009, due primarily to:
• Lower distribution and transmission segment expenses of $66 million were due primarily to lower costs that are recovered through
distribution tracking mechanisms that have no earnings impact ($65 million), such as retail transmission, RMR and customer
service expenses, and lower uncollectibles expense at Yankee Gas ($16 million), partially offset by higher electric distribution and
natural gas expenses ($22 million and $3 million, respectively), including higher pension costs and storm restoration costs, and
higher transmission segment expenses ($4 million). In addition, amounts that eliminate in consolidation primarily related to service
company charges decreased by $45 million.
• Higher NU parent and other companies expenses of $22 million due primarily to costs incurred in 2010 related to NU's proposed
merger with NSTAR and higher pension and environmental costs.
Maintenance
Maintenance decreased in 2010, as compared to 2009, due primarily to the allowed regulatory deferral of approximately $32 million as
a result of the June 30, 2010 CL&P rate case decision, of which $29.5 million was recognized as a deferral in maintenance expense,
lower boiler and maintenance costs at PSNH’s generation business ($12 million), offset by higher distribution segment overhead line
expenses ($13 million), higher distribution segment vegetation management costs ($2 million) and higher transmission segment routine
station maintenance expenses ($2 million).
Depreciation
Depreciation decreased in 2010, as compared to 2009, due primarily to a lower depreciation rate being used at CL&P as a result of the
distribution rate case decision that was effective July 1, 2010, partially offset by higher utility plant balances resulting from completed
construction projects placed into service in 2010.
Amortization of Regulatory Assets, Net
Amortization of Regulatory Assets, Net increased in 2010, as compared to 2009, due primarily to a higher recovery of CTA costs at
CL&P ($39 million), higher PSNH amortization on the ES deferral and TCAM ($42 million and $11 million, respectively), and previously
deferred unrecovered stranded generation costs at WMECO ($11 million), partially offset by the impact of the 2010 Healthcare Act
related to the deferral of lost tax benefits that we believe are probable of recovery in future electric and natural gas distribution rates
($26 million).
Taxes Other Than Income Taxes
(Millions of Dollars)
2010
Increase/(Decrease)
as compared to 2009
Connecticut Gross Earnings Tax $ 8.9
Property Taxes 12.5
Use Taxes 10.4
Other 0.7
$ 32.5
The increase in Taxes Other Than Income Taxes was due primarily to an increase in property taxes as a result of an increase in
Property, Plant and Equipment related to our capital programs. The Connecticut Gross Earnings Tax increased primarily as a result of
an increase in the transmission segment revenues and an increase in distribution segment revenues primarily related to retail
transmission and higher transition cost recoveries in 2010, as compared to 2009. The increase in use taxes was due primarily to the
absence in 2010 of a Connecticut state use tax refund.