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Peaker CfDs: In 2008, CL&P entered into three CfDs with developers of peaking generation units approved by the PURA (Peaker
CfDs). These units have a total of approximately 500 MW of peaking capacity. As directed by the PURA, CL&P and UI have entered
into a sharing agreement, whereby CL&P is responsible for 80 percent and UI for 20 percent of the net costs or benefits of these CfDs.
The Peaker CfDs pay the developer the difference between capacity, forward reserve and energy market revenues and a cost-of-
service payment stream for 30 years. The ultimate cost or benefit to CL&P under these contracts will depend on the costs of plant
construction and operation and the prices that the projects receive for capacity and other products in the ISO-NE markets. CL&P's
portion of the amounts paid or received under the Peaker CfDs will be recoverable from or refunded to CL&P's customers.
Natural Gas Procurement: NU’s natural gas distribution businesses have long-term contracts for the purchase, transportation and
storage of natural gas in the normal course of business as part of its portfolio of supplies. These contracts extend through 2029.
Coal, Wood and Other: PSNH has entered into various arrangements for the purchase of wood, coal and the transportation services
for fuel supply for its electric generating assets. Also included in the table above is a contract for capacity on the Portland Natural Gas
Transmission System (PNGTS) pipeline that extends through 2019. The costs on this contract are not recoverable from customers.
Transmission Support Commitments: Along with other New England utilities, CL&P, NSTAR Electric, PSNH and WMECO entered into
agreements in 1985 to support transmission and terminal facilities that were built to import electricity from the Hydro-Québec system in
Canada. CL&P, NSTAR Electric, PSNH and WMECO are obligated to pay, over a 30-year period ending in 2020, their proportionate
shares of the annual operation and maintenance expenses and capital costs of those facilities.
The total costs incurred under these agreements in 2012, 2011, and 2010 were as follows:
NU
For the Years Ended December 31,
(Millions of Dollars)
2012
2011
2010
Supply and Stranded Cost
$
216.8
$
156.0
$
196.2
Renewable Energy
48.7
5.1
5.8
Peaker CfDs
59.3
40.2
10.0
Natural Gas Procurement 243.1
191.7
209.5
Coal, Wood and Other
105.2
113.2
171.1
Transmission Support Commitments
24.8
18.1
18.9
For the Years Ended December 31,
2012
2011
2010
NSTAR
NSTAR
NSTAR
(Millions of Dollars)
CL&P
Electric(1)
PSNH
WMECO
CL&P
Electric(1)
PSNH
WMECO
CL&P
Electric(1)
PSNH
WMECO
Supply and
Stranded Cost
$ 158.2
$ 36.3
$
30.5
$ 0.9
$ 114.9
$ 80.9
$
40.8
$ 0.3
$ 151.3
$ 146.3
$
42.6
$ 2.3
Renewable Energy
-
60.2
4.1
-
-
61.8
5.1
-
-
52.7
5.8
-
Peaker CfDs
59.3
-
-
-
40.2
-
-
-
10.0
-
-
-
Coal, Wood and Other
-
-
105.2
-
-
-
113.2
-
-
-
171.1
-
Transmission Support
Commitments
9.6
7.6
5.2
2.0
10.3
8.1
5.6
2.2
10.8
8.5
5.8
2.3
(1) NSTAR Electric amounts are included in NU consolidated from the date of the merger, April 10, 2012 through December 31, 2012.
NSTAR Electric amounts are not included in NU consolidated for the years ended December 31, 2011 and 2010.
C. Deferred Contractual Obligations
CL&P, NSTAR Electric, PSNH and WMECO have decommissioning and plant closure cost obligations to the Yankee Companies,
which have each completed the physical decommissioning of their respective nuclear facilities and are now engaged in the long-term
storage of their spent fuel. The Yankee Companies collect decommissioning and closure costs through wholesale, FERC-approved
rates charged under power purchase agreements with several New England utilities, including CL&P, NSTAR Electric, PSNH and
WMECO. These companies in turn recover these costs from their customers through state regulatory commission-approved retail
rates.
CL&P, NSTAR Electric, PSNH and WMECO's percentage share of the obligations to support the Yankee Companies under FERC-
approved rate tariffs is the same as their respective ownership percentages in the Yankee Companies. For further information on the
ownership percentages, see Note 1J, "Summary of Significant Accounting Policies - Equity Method Investments," to the consolidated
financial statements.
The Yankee Companies are currently collecting amounts that management believes are adequate to recover the remaining
decommissioning and closure cost estimates for the respective plants. Management believes CL&P, NSTAR Electric and WMECO will
recover their shares of these decommissioning and closure obligations from their customers. PSNH has already recovered its share of
these costs from its customers.