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50
Operating Revenues
For the Years Ended December 31,
(Millions of Dollars)
2009
2008
Increase/
(Decrease) Percent
Electric Distribution $ 4,358.4 $ 4,716.1 $ (357.7) (7.6) %
Natural Gas Distribution 449.6 577.4 (127.8) (22.1)
Total Distribution 4,808.0 5,293.5 (485.5) (9.2)
Transmission 577.9 424.8 153.1 36.0
Total Regulated Companies 5,385.9 5,718.3 (332.4) (5.8)
Competitive Businesses 81.3 114.1 (32.8) (28.7)
Other and Eliminations (27.8) (32.3) 4.5 13.9
NU $ 5,439.4 $ 5,800.1 $ (360.7) (6.2) %
A summary of our retail electric sales and firm natural gas sales were as follows:
For the Years Ended December 31,
2009 2008
Increase/
(Decrease) Percent
Retail Electric Sales in GWh 33,645 34,883 (1,238) (3.5) %
Firm Natural Gas Sales in Million Cubic Feet 42,450 39,717 2,733 6.9 %
Operating Revenues decreased in 2009, as compared to 2008, due primarily to lower distribution segment revenues ($485 million) as a
result of the recovery of a lower level of electric and natural gas distribution fuel and other expenses passed through to customers
through regulatory tracking mechanisms.
Electric distribution revenues decreased due primarily to a decrease in the portion of electric distribution revenues that does not impact
earnings ($395 million), partially offset by an increase in the component of revenues that impacts earnings ($37 million). The portion of
electric distribution revenues that impacts earnings increased $37 million due primarily to higher CL&P and PSNH retail rates, partially
offset by lower retail electric sales. Retail electric sales for the Regulated companies decreased 3.5 percent. Natural gas distribution
revenues decreased $128 million due primarily to decreased recovery of fuel costs primarily as a result of lower prices, partially offset
by higher sales volumes. Firm natural gas sales increased 6.9 percent in 2009 compared with 2008.
The $395 million decrease in electric distribution revenues that does not impact earnings consists of the portions of distribution
revenues that are included in regulatory commission approved tracking mechanisms that recover certain incurred costs ($356 million)
and revenues that are eliminated in consolidation of the Regulated companies ($39 million). The distribution revenue tracking
components decreased $356 million due primarily to lower recovery of generation service and related congestion charges ($331 million)
and lower CL&P wholesale revenues as a result of decreased market revenue related to sales of IPP purchased generation output
($163 million), partially offset by higher retail transmission revenues ($104 million) mainly as a result of the higher 2009 retail rates.
The tracking mechanisms allow for rates to be changed periodically with overcollections refunded to customers or undercollections
recovered from customers in future periods.
Transmission segment revenues increased due primarily to a higher transmission investment base as a result of the completion of our
southwest Connecticut projects in 2008 and higher overall expenses. Competitive businesses' revenues decreased $33 million due
primarily to lower Boulos revenues as a result of less work on transmission projects and a lower level of work in other areas.
Fuel, Purchased and Net Interchange Power
Fuel, Purchased and Net Interchange Power decreased in 2009, as compared to 2008, due primarily to the following:
(Millions of Dollars)
2009
Increase/(Decrease)
as compared to 2008
Lower GSC supply costs and other purchased power costs,
partially offset by an increase in deferred fuel costs at CL&P
$ (154.7)
Lower prices on purchased natural gas at Yankee Gas (132.6)
An increased level of ES customer migration to third party
electric suppliers and lower retail sales, partially offset by
higher forward energy market prices at PSNH
(37.8)
Lower basic/default service supply costs at WMECO (45.2)
Increased competitive businesses' expenses due primarily to
lower Select Energy mark-to-market gains
3.7
$ (366.6)