Eversource 2012 Annual Report Download - page 31

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during the 2012 through 2014 compliance period. PSNH expects to satisfy its remaining RGGI requirements by purchasing CO2
allowances at auction or in the secondary market. The cost of complying with RGGI requirements is recoverable from PSNH customers.
Current legislation provides a portion of the RGGI auction proceeds in excess of $1 per allowance will be refunded to customers.
Because none of NU’s other subsidiaries, CL&P, NSTAR Electric or WMECO, currently owns any generating assets (other than two
solar photovoltaic facilities owned by WMECO, which do not emit CO2), none of them is required to acquire CO2 allowances. However,
the CO2 allowance costs borne by the generating facilities that are utilized by wholesale suppliers to satisfy energy supply requirements
to CL&P, NSTAR Electric and WMECO will likely be included in the overall wholesale rates charged, which costs are then recoverable
from customers.
Federal greenhouse gas legislation has stalled under the current administration. Recently, climate change law has been discussed as
an initiative that will be moved forward in the current Congress. However, even without legislation, we can expect additional regulations
from the EPA that could impact NU.
FERC Hydroelectric Project Licensing
Federal Power Act licenses may be issued for hydroelectric projects for terms of 30 to 50 years as determined by the FERC. Upon the
expiration of an existing license, (i) the FERC may issue a new license to the existing licensee, (ii) the United States may take over the
project, or (iii) the FERC may issue a new license to a new licensee, upon payment to the existing licensee of the lesser of the fair value
or the net investment in the project, plus severance damages, less certain amounts earned by the licensee in excess of a reasonable
rate of return.
PSNH owns nine hydroelectric generating stations with a current claimed capability representing winter rates of approximately 71 MW,
eight of which are licensed by the FERC under long-term licenses that expire on varying dates from 2017 through 2047. PSNH and its
hydroelectric projects are subject to conditions set forth in such licenses, the Federal Power Act and related FERC regulations,
including provisions related to the condemnation of a project upon payment of just compensation, amortization of project investment
from excess project earnings, possible takeover of a project after expiration of its license upon payment of net investment and
severance damages and other matters. PSNH is currently involved with the early stages of relicensing at its Eastman Falls Hydro
Station, which is comprised of two units, totaling 6.5 MW.
Licensed operating hydroelectric projects are not generally subject to decommissioning during the license term in the absence of a
specific license provision that expressly permits the FERC to order decommissioning during the license term. However, the FERC has
taken the position that under appropriate circumstances it may order decommissioning of hydroelectric projects at relicensing or may
require the establishment of decommissioning trust funds as a condition of relicensing. The FERC may also require project
decommissioning during a license term if a hydroelectric project is abandoned, the project license is surrendered or the license is
revoked. PSNH is not presently encountering any of these challenges.
EMPLOYEES
As of December 31, 2012, we employed a total of approximately 8,842 employees, excluding temporary employees, of which 1,787
were employed by CL&P, 1,204 were employed by PSNH, 348 were employed by WMECO, and 1,619 employees employed by
NSTAR Electric & Gas Corporation provided services to NSTAR Electric. Approximately 47.8 percent of our employees are members
of the International Brotherhood of Electrical Workers, the Utility Workers Union of America or The United Steelworkers, and are
covered by 13 collective bargaining agreements.
INTERNET INFORMATION
Our website address is www.nu.com. We make available through our website a link to the SEC's EDGAR website
(http://www.sec.gov/edgar/searchedgar/companysearch.html), at which site NU's, CL&P's, NSTAR Electric’s, PSNH's and WMECO's
Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to those reports
may be reviewed. Printed copies of these reports may be obtained free of charge by writing to our Investor Relations Department at
Northeast Utilities, 56 Prospect Street, Hartford, CT 06103.