Eversource 2010 Annual Report Download - page 87

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L. Equity Method Investments
Regional Nuclear Companies: As of December 31, 2010, CL&P, PSNH and WMECO owned common stock in three regional nuclear
generation companies (Yankee Companies). Each of the Yankee Companies owned a single nuclear generating facility that has been
decommissioned. Ownership interests in the Yankee Companies as of December 31, 2010, which are accounted for on the equity
method, are as follows:
(Percent) CYAPC YAEC MYAPC
CL&P 34.5 24.5 12.0
PSNH 5.0 7.0 5.0
WMECO 9.5 7.0 3.0
Total NU 49.0 % 38.5 % 20.0 %
The total carrying values of ownership interests in CYAPC, YAEC and MYAPC, which are included in Other Long-Term Assets on the
accompanying consolidated balance sheets and in the Regulated companies - Electric distribution reportable segment, are as follows:
(Millions of Dollars) 2010 2009
CL&P $ 1.3 $ 1.6
PSNH 0.3 0.4
WMECO 0.4 0.5
Total NU $ 2.0 $ 2.5
Regional Transmission Companies: NU parent has a 22.7 percent equity ownership interest in two companies that transmit electricity
imported from the Hydro-Québec system in Canada. NU parent's investment, which is included in Other-Long Term Assets on the
accompanying consolidated balance sheets, totaled $5.6 million and $6.2 million as of December 31, 2010 and 2009, respectively.
Dividends received from the Yankee Companies and the regional transmission companies investments were recorded as a reduction to
NU's, including CL&P, PSNH and WMECO, investment and were as follows:
For the Years Ended December 31,
(Millions of Dollars) 2010 2009 2008
NU $ 1.5 $ 3.8 $ 1.0
CL&P 0.4 1.5 -
PSNH 0.1 0.2 -
WMECO 0.1 0.4 -
Net earnings related to these equity investments are included in Other Income, Net on the accompanying consolidated statements of
income. For further information, see Note 1P, "Summary of Significant Accounting Policies - Other Income, Net," to the consolidated
financial statements.
The application of the equity method is considered the appropriate method to account for the Yankee Companies and the regional
transmission companies investments because NU's ownership interests are between 20 and 50 percent of the voting stock and NU has
the ability to exercise significant influence over the investees' operating and financial policies.
For further information on the Yankee Companies, see Note 12D, "Commitments and Contingencies - Deferred Contractual
Obligations," to the consolidated financial statements.
M. Revenues
Regulated Companies: The Regulated companies' retail revenues are based on rates approved by the state regulatory commissions.
In general, rates can only be changed through formal proceedings with the state regulatory commissions. The Regulated companies
also utilize regulatory commission-approved tracking mechanisms to recover certain costs as incurred. The tracking mechanisms allow
for rates to be changed periodically, with overcollections refunded to customers or undercollections collected from customers in future
periods.
The Regulated companies record monthly, day ahead and real time energy purchases and sales net in accordance with applicable
accounting guidance. Revenues and expenses associated with derivative instruments to purchase and sell energy in the day ahead
and real time markets are recorded on a net basis in Operating Revenues or Fuel, Purchased and Net Interchange Power on the
consolidated statements of income.
Regulated Companies' Unbilled Revenues: Unbilled revenues represent an estimate of electricity or natural gas delivered to customers
for which the customers have not yet been billed. Unbilled revenues are included in Operating Revenues on the consolidated
statements of income and are assets on the consolidated balance sheets that are reclassified to accounts receivable in the following
month as customers are billed. Such estimates are subject to adjustment when actual meter readings become available, when
changes in estimating methodology occur and under other circumstances.