Eversource 2012 Annual Report Download - page 109

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(10) As of December 31, 2012, amount relates to the purchase price adjustment required to record the NSTAR long-term debt
issuances at fair value on the date of the merger. As of December 31, 2011, amount related to a fixed to floating interest rate
swap on the $263 million NU parent note that matured on April 1, 2012. The change in fair value of the interest component of
the debt was recorded as an adjustment to Current Portion - Long Term Debt as of December 31, 2011 with an equal and
offsetting adjustment to Current Derivative Assets.
Long-term debt maturities and cash sinking fund requirements on debt outstanding as of December 31, 2012 for the years 2013
through 2017 and thereafter, are shown below. These amounts exclude fees and interest due for spent nuclear fuel disposal costs, net
unamortized premiums and discounts, and other fair value adjustments as of December 31, 2012:
(Millions of Dollars)
NU
CL&P
NSTAR Electric
PSNH
WMECO
2013
$
731.7
$
125.0
$
1.7
$
-
$
55.0
2014
576.6
150.0
301.7
50.0
-
2015
216.7
162.0
4.7
-
50.0
2016
-
-
-
-
-
2017 745.0
250.0
400.0
70.0
-
Thereafter
4,559.8
1,540.3
899.9
879.5
435.0
Total
$
6,829.8
$
2,227.3
$
1,608.0
$
999.5
$
540.0
The utility plant of CL&P, PSNH, Yankee Gas and NSTAR Gas is subject to the lien of each company's respective first mortgage bond
indenture. NSTAR Electric, WMECO, NU Parent and NSTAR LLC debt is unsecured.
The PSNH Series A and Series C tax-exempt bonds are currently callable at 100 percent and 101 percent of par, respectively. The
PSNH Series B tax-exempt bond will become callable in June 2013. CL&P’s $125 million and $62 million tax-exempt PCRBs, which
are subject to mandatory tender for purchase on September 3, 2013 and April 1, 2015, respectively, cannot be redeemed prior to their
respective tender dates. CL&P’s $120.5 million tax-exempt PCRBs will be subject to redemption at par on or after September 1, 2021.
All other long-term debt securities are subject to make-whole provisions.
As of December 31, 2012, CL&P had $307.5 million of tax-exempt PCRBs outstanding. CL&P’s obligation to repay each series of
PCRBs is secured by first mortgage bonds. Each such series of first mortgage bonds contains similar terms and provisions as the
applicable series of PCRBs. If CL&P failed to meet its obligations under the PCRBs, then these first mortgage bonds would become
outstanding.
As of December 31, 2012, PSNH had $287.5 million in PCRBs outstanding. PSNH's obligation to repay each series of PCRBs is
secured by first mortgage bonds and bond insurance. Each such series of first mortgage bonds contains similar terms and provisions
as the applicable series of PCRBs. If PSNH failed to meet its obligations under the PCRBs, then these first mortgage bonds would
become outstanding. The 2001 Series A PCRBs, in the aggregate principal amount of $89.3 million, bears interest at a rate that is
periodically set pursuant to auctions. PSNH is not obligated to purchase these PCRBs, which mature in 2021, from the remarketing
agent. The weighted average effective interest rate on PSNH's Series A variable-rate PCRBs was 0.20 percent in 2012 and 0.21
percent in 2011.
NU's, including CL&P, NSTAR Electric, PSNH and WMECO, long-term debt agreements provide that NU and certain of its subsidiaries
must comply with certain covenants as are customarily included in such agreements, including a minimum equity requirement for
NSTAR Gas. Under the minimum equity requirement, the outstanding long-term debt of NSTAR Gas must not exceed equity. NU and
these subsidiaries were in compliance with these covenants as of December 31, 2012 and 2011.
Yankee Gas has certain long-term debt agreements that contain cross-default provisions applicable to all of Yankee Gas’ outstanding
first mortgage bond series. The cross-default provisions on Yankee Gas’ Series B Bonds would be triggered if Yankee Gas were to
default on a payment due on indebtedness in excess of $2 million. The cross-default provisions on all other series of Yankee Gas’ first
mortgage bonds would be triggered if Yankee Gas were to default in a payment due on indebtedness in excess of $10 million. No
other debt issuances contain cross-default provisions as of December 31, 2012.
Spent Nuclear Fuel Obligation: Under the Nuclear Waste Policy Act of 1982, CL&P and WMECO must pay the DOE for the costs of
disposal of spent nuclear fuel and high-level radioactive waste for the period prior to the sale of their ownership shares in the Millstone
nuclear power stations.
The DOE is responsible for the selection and development of repositories for, and the disposal of, spent nuclear fuel and high-level
radioactive waste. For nuclear fuel used to generate electricity prior to April 7, 1983 (Prior Period Spent Nuclear Fuel) for CL&P and
WMECO, an accrual has been recorded for the full liability, and payment must be made by CL&P and WMECO to the DOE prior to the
first delivery of spent fuel to the DOE. After the sale of Millstone, CL&P and WMECO remained responsible for their share of the
disposal costs associated with the Prior Period Spent Nuclear Fuel. Until such payment to the DOE is made, the outstanding liability
will continue to accrue interest at the 3-month Treasury bill yield rate. In addition, as a result of consolidating CYAPC, NU has
consolidated $179.3 million in additional spent nuclear fuel obligations, including interest, as of December 31, 2012. Fees due to the
DOE for the disposal of CL&P's and WMECO's Prior Period Spent Nuclear Fuel and CYAPC's and YAEC's spent nuclear fuel obligation
include accumulated interest costs of $350 million and $219.3 million for NU ($177.8 million and $177.6 million for CL&P and $41.7
million and $41.7 million for WMECO) as of December 31, 2012 and 2011, respectively.