Eversource 2012 Annual Report Download - page 134

121
I. Litigation and Legal Proceedings
NU, including CL&P, NSTAR Electric, PSNH and WMECO, are involved in legal, tax and regulatory proceedings regarding matters
arising in the ordinary course of business, which involve management's assessment to determine the probability of whether a loss will
occur and, if probable, its best estimate of probable loss. The Company records and discloses losses when these losses are probable
and reasonably estimable, discloses matters when losses are probable but not estimable or reasonably possible, and expenses legal
costs related to the defense of loss contingencies as incurred.
13. LEASES
NU, including CL&P, NSTAR Electric, PSNH and WMECO, has entered into lease agreements, some of which are capital leases, for
the use of data processing and office equipment, vehicles and office space. In addition, CL&P, PSNH and WMECO incur costs
associated with leases entered into by NUSCO and RRR, which are included below in their respective operating lease rental expenses
and future minimum rental payments. These intercompany lease amounts are eliminated on an NU consolidated basis. The provisions
of the NU, CL&P, NSTAR Electric, PSNH, and WMECO lease agreements generally contain renewal options. Certain lease
agreements contain payments impacted by the commercial paper rate plus a credit spread or the consumer price index.
Operating lease rental payments charged to expense were as follows:
NSTAR
(Millions of Dollars)
NU
CL&P
Electric (1)
PSNH
WMECO
2012
$
14.8
$
8.2
$
6.2
$
2.5
$
3.0
2011
8.4
8.3
19.8
2.1
2.8
2010
11.9
10.0
19.2
2.2
2.8
(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.
Future minimum rental payments to external third parties excluding executory costs, such as property taxes, state use taxes, insurance,
and maintenance, under long-term noncancelable leases, as of December 31, 2012 are as follows:
Capital Leases
(Millions of Dollars)
NU
CL&P
PSNH
2013 $ 2.8
$ 2.2
$ 0.5
2014
2.2
2.0
0.2
2015
2.2
2.0
0.2
2016
2.0
1.9
0.1
2017
2.0
2.0
-
Thereafter
7.5
7.3
-
Future minimum lease payments
18.7
17.4
1.0
Less amount representing interest
7.6
7.4
0.1
Present value of future minimum lease payments
$
11.1
$
10.0
$
0.9
Operating Leases
(Millions of Dollars)
NU
CL&P
NSTAR Electric
PSNH
WMECO
2013
$
22.4
$
4.3
$
10.9
$
1.3
$
2.7
2014
16.6
3.7
8.2
1.0
1.1
2015
14.1
3.1
7.4
0.8
0.6
2016
11.2
2.3
6.1
0.6
0.3
2017 8.6
1.2
5.1
0.5
0.2
Thereafter
23.3
6.4
10.3
1.8
1.2
Future minimum lease payments $ 96.2
$ 21.0
$ 48.0
$ 6.0
$ 6.1
CL&P entered into certain contracts for the purchase of energy that qualify as leases. These contracts do not have minimum lease
payments and therefore are not included in the tables above. However, such contracts have been included in the contractual
obligations table in Note 12B, "Commitments and Contingencies - Long-Term Contractual Arrangements," to the consolidated financial
statements.