Eversource 2010 Annual Report Download - page 94

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Regulatory Liabilities: The components of regulatory liabilities are as follows:
As of December 31,
2010 2009
(Millions of Dollars) NU NU
Cost of Removal $ 194.8 $ 209.2
Regulatory Liabilities Offsetting Derivative Assets 38.1 109.4
Regulatory Tracker Deferrals 95.1 69.5
A
FUDC Transmission Incentive 62.1 51.1
Pension Liability - Yankee Gas Acquisition 12.5 15.0
Other Regulatory Liabilities 36.5 31.5
Totals $ 439.1 $ 485.7
As of December 31,
2010 2009
(Millions of Dollars) CL&P PSNH WMECO CL&P PSNH WMECO
Cost of Removal $ 78.6 $ 57.3 $ 9.5 $ 82.2 $ 60.5 $ 16.6
Regulatory Liabilities Offsetting Derivative Assets 38.1 - - 109.0 0.4 -
Regulatory Tracker Deferrals 79.4 6.6 4.8 56.0 4.4 2.1
A
FUDC Transmission Incentive 56.5 - 5.6 50.4 - 0.7
WMECO Provision For Rate Refunds - - 2.0 - - 2.0
Other Regulatory Liabilities 29.5 3.1 1.1 18.6 4.6 0.3
Totals $ 282.1 $ 67.0 $ 23.0 $ 316.2 $ 69.9 $ 21.7
Cost of Removal: NU's Regulated companies currently recover amounts in rates for future costs of removal of plant assets over the
lives of the assets. These amounts are classified as Regulatory Liabilities on the accompanying consolidated balance sheets. This
liability is included in rate base.
Regulatory Liabilities Offsetting Derivative Assets: The regulatory liabilities offsetting derivative assets relate to the fair value of
contracts used to purchase power and other related contracts that will benefit customers in the future. See Note 4, "Derivative
Instruments," to the consolidated financial statements for further information. This liability is excluded from rate base and is refunded as
the actual settlement occurs over the duration of the contracts.
AFUDC Transmission Incentive: See Note 1O, "Summary of Significant Accounting Policies - Allowance for Funds Used During
Construction," to the consolidated financial statements for further information.
Pension Liability - Yankee Gas Acquisition: When Yankee Gas was acquired by NU, the pension liability was adjusted to fair value with
offsets to the adjustment recorded as a regulatory liability, as approved by the DPUC. The pension liability was approved for
amortization over an approximate 13-year period beginning in 2002 without a return on the liability.
WMECO Provision for Rate Refunds: The provision for rate refunds was established to reserve a refund to customers as a result of
DPU service quality penalty guidelines.
3. PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION
The following tables summarize the NU, CL&P, PSNH, and WMECO investments in utility plant:
As of December 31,
2010 2009
(Millions of Dollars) NU NU
Distribution - Electric $ 6,197.2 $ 5,893.9
Distribution - Natural Gas 1,126.6 1,071.1
Transmission 3,378.0 3,219.2
Generation 697.1 660.1
Electric and Natural Gas Utility 11,398.9 10,844.3
Other
(1)
305.5 265.6
Total Property, Plant and Equipment, Gross 11,704.4 11,109.9
Less: Accumulated Depreciation
Electric and Natural Gas Utility (2,862.3) (2,721.3)
Other (119.9) (120.3)
Total Accumulated Depreciation (2,982.2) (2,841.6)
Property, Plant and Equipment, Net 8,722.2 8,268.3
Construction Work in Progress 845.5 571.7
Total Property, Plant and Equipment, Net $ 9,567.7 $ 8,840.0
(1) These assets are primarily owned by RRR ($166 million and $143.8 million) and NUSCO ($126.6 million and $109 million) as of
December 31, 2010 and 2009, respectively, and are mainly comprised of building improvements at RRR and software and
equipment at NUSCO.