Eversource 2010 Annual Report Download - page 68

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51
Other Operating Expenses
Other Operating Expenses decreased in 2009, as compared to 2008, due primarily to lower NU parent and other companies' expenses
($49 million) and lower competitive businesses' expenses ($39 million), partially offset by higher distribution and transmission segment
expenses ($68 million).
NU parent and other companies' expenses were lower by $49 million in 2009 due primarily to the absence of the $49.5 million payment
resulting from the settlement of litigation made in 2008 ($29.8 million after-tax). Competitive businesses' expenses were lower by $39
million due primarily to lower Boulos expenses as a result of a lower level of work.
Higher distribution and transmission segment expenses of $68 million were due primarily to higher electric distribution segment
expenses ($49 million), higher expenses at Yankee Gas ($18 million), and higher transmission segment expenses ($15 million),
partially offset by lower costs that are recovered through distribution tracking mechanisms and have no earnings impact ($8 million),
and all other operating costs ($6 million). The higher operations expenses impacting earnings include higher uncollectible and pension
expenses.
Maintenance
Maintenance decreased in 2009, as compared to 2008, due primarily to lower distribution segment expenses ($21 million), partially
offset by higher transmission line expenses ($1 million). Distribution segment expenses were lower due primarily to lower repair and
maintenance of distribution lines ($15 million), including lower storm-related expenses, lower equipment maintenance expenses ($4
million), and lower PSNH generation expenses ($3 million), partially offset by higher vegetation management expenses ($5 million).
Depreciation
Depreciation increased in 2009, as compared to 2008, due primarily to higher transmission segment ($23 million) and distribution
segment ($11 million) plant balances resulting from completed construction projects placed into service.
Amortization of Regulatory Assets, Net
Amortization of Regulatory Assets, Net decreased $173 million in 2009, as compared to 2008, for the distribution segment due primarily
to lower amortization at CL&P resulting from a lower recovery of stranded costs ($131 million) as a result of lower retail CTA revenues
and higher transition costs, partially offset by higher amortization of the SBC balance ($15 million). The decreases for PSNH and
WMECO are $39 million and $15 million, respectively.
Taxes Other Than Income Taxes
Taxes Other Than Income Taxes increased in 2009, as compared to 2008, due primarily to higher property taxes ($18 million) as a
result of higher plant balances and increased municipal tax rates and higher payroll related taxes, partially offset by the resolution of
various routine tax issues primarily surrounding sales and use tax amounts ($8 million).
Interest Expense
For the Years Ended December 31,
(Millions of Dollars) 2009 2008
Increase/
(Decrease) Percent
Interest on Long-Term Debt $ 224.7 $ 193.9 $ 30.8 15.9 %
Interest on RRBs 36.5 50.2 (13.7) (27.3)
Other Interest 12.4 25.0 (12.6) (50.4)
$ 273.6 $ 269.1 $ 4.5 1.7 %
Interest Expense increased in 2009, as compared to 2008, due primarily to higher Interest on Long-Term Debt resulting from the
issuance of new long-term debt in 2008 and 2009, partially offset by lower Interest on RRBs resulting from lower principal balances
outstanding, and lower Other Interest mostly related to the resolution of various routine tax issues.
Other Income, Net
For the Years Ended December 31,
(Millions of Dollars) 2009
2008
Increase/
(Decrease) Percent
Other Income, Net $ 37.8 $ 50.4 $ (12.6) (25.0) %
Other Income, Net decreased in 2009, as compared to 2008, due primarily to lower AFUDC equity income ($20 million) as a result of
lower eligible CWIP balances, the absence of interest income related to the federal tax settlement in 2008 ($10 million), and lower
CL&P EIA incentives ($6 million), partially offset by higher investment income due primarily to improved results from NU's supplemental
benefit trust and the absence of other-than-temporary impairments recorded in 2008 ($24 million).