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81
As of December 31, 2009
Derivatives Not Designated as Hedges
(Millions of Dollars)
Commodity
and Capacity
Contracts
Required by
Regulation
Commodity
Sales
Contract and
Related Price
and Supply
Risk
Management
Other
Commodity
Price and
Supply Risk
Management
Hedging
Instruments-
Interest
Rate Risk
Management
Collateral
and Netting
Net Amount
Recorded as
Derivative
Asset/(Liability)
Current Derivative Assets:
Level 2:
NU Parent $ - $ - $ - $ 6.7 $ - $ 6.7
Level 3:
CL&P 20.1 - 4.5 - - 24.6
PSNH
(3)
- - 0.4 - - 0.4
Other - - 0.1 - - 0.1
Total Current Derivative Assets $ 20.1 $ - $ 5.0 $ 6.7 $ - $ 31.8
Long-Term Derivative Assets:
Level 2:
NU Parent $ - $ - $ - $ 6.5 $ - $ 6.5
Level 3:
CL&P
(1)
259.0 - - - (75.8) 183.2
Total Long-Term Derivative Assets $ 259.0 $ - $ - $ 6.5 $ (75.8) $ 189.7
Current Derivative Liabilities:
Level 2:
PSNH $ - $ - $ (18.8) $ - $ - $ (18.8)
Level 3:
NU Enterprises
(2)
- (13.0) - - 4.3 (8.7)
CL&P
(4)
(10.3) - - - 0.5 (9.8)
Other - - (0.4) - - (0.4)
Total Current Derivative Liabilities $ (10.3) $ (13.0) $ (19.2) $ - $ 4.8 $ (37.7)
Long-Term Derivative Liabilities:
Level 2:
PSNH $ - $ - $ (7.6) $ - $ - $ (7.6)
Level 3:
NU Enterprises
(1)
- (41.1) - - 6.7 (34.4)
CL&P (913.3) - - - - (913.3)
Other - - (0.3) - - (0.3)
Total Long-Term Derivative Liabilities $ (913.3) $ (41.1) $ (7.9) $ - $ 6.7 $ (955.6)
(1) Amounts in Collateral and Netting represent derivative contracts that are netted against the fair value of the gross derivative
asset/liability.
(2) Collateral and Netting amounts as of December 31, 2010 for NU Enterprises current derivative liabilities represent cash collateral
posted that is under master netting agreements. As of December 31, 2009, Collateral and Netting included derivative assets of
$2.2 million that are netted against the fair value of derivative liabilities and cash collateral of $2.1 million posted under master
netting agreements.
(3) On PSNH's accompanying consolidated balance sheet, the current portion of the net derivative asset is shown in Prepayments and
Other Current Assets.
(4) Collateral and Netting amounts represent cash posted under master netting agreements.
The business activities of the Company that resulted in the recognition of derivative assets also create exposure to various
counterparties. As of December 31, 2010, NU's and CL&P's derivative assets are exposed to counterparty credit risk. Of these
amounts, $95.5 million ($83.6 million for CL&P) is contracted with investment grade entities and the remainder is contracted with
multiple other counterparties.
For further information on the fair value of derivative contracts, see Note 1J, "Summary of Significant Accounting Policies - Derivative
Accounting," Note 1I, "Summary of Significant Accounting Policies - Fair Value Measurements."
The following provides additional information about the derivatives included in the tables above, including volumes and cash flow
information.