Eversource 2012 Annual Report Download - page 38

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Natural Gas Distribution System
As of December 31, 2012, Yankee Gas owned 28 active gate stations, 203 district regulator stations, and 3,265 miles of natural gas
main pipeline. Yankee Gas also owns a 1.2 Bcf LNG facility in Waterbury, Connecticut.
As of December 31, 2012, NSTAR Gas owned 21 active gate stations, 145 district regulator stations, and 3,185 miles of natural gas
main pipeline. NSTAR Gas and Hopkinton own a satellite vaporization plant and above ground cryogenic storage tanks. In addition,
Hopkinton owns a liquefaction and vaporization plant. Combined, the tanks have an aggregate storage capacity equivalent to 3.5 Bcf of
natural gas.
Franchises
CL&P. Subject to the power of alteration, amendment or repeal by the General Assembly of Connecticut and subject to certain
approvals, permits and consents of public authority and others prescribed by statute, CL&P has, subject to certain exceptions not
deemed material, valid franchises free from burdensome restrictions to provide electric transmission and distribution services in the
respective areas in which it is now supplying such service.
In addition to the right to provide electric transmission and distribution services as set forth above, the franchises of CL&P include,
among others, limited rights and powers, as set forth under Connecticut law and the special acts of the General Assembly constituting
its charter, to manufacture, generate, purchase and/or sell electricity at retail, including to provide Standard Service, Supplier of Last
Resort service and backup service, to sell electricity at wholesale and to erect and maintain certain facilities on public highways and
grounds, all subject to such consents and approvals of public authority and others as may be required by law. The franchises of CL&P
include the power of eminent domain. Connecticut law prohibits an electric distribution company from owning or operating generation
assets. However, under "An Act Concerning Energy Independence," enacted in 2005, CL&P is permitted to own up to 200 MW of
peaking facilities if the PURA determines that such facilities will be more cost effective than other options for mitigating FMCC and
Locational Installed Capacity (LICAP) costs. In addition, under "An Act Concerning Electricity and Energy Efficiency," enacted in 2007,
an electric distribution company, such as CL&P, is permitted to purchase an existing electric generating plant located in Connecticut
that is offered for sale, subject to prior approval from the PURA and a determination by the PURA that such purchase is in the public
interest. Finally, Connecticut law also allows CL&P to submit a proposal to the DEEP to build, own or operate one or more generation
facilities up to 10 MWs using Class 1 renewable energy.
NSTAR ELECTRIC AND NSTAR GAS. Through their charters, which are unlimited in time, NSTAR Electric and NSTAR Gas have the
right to engage in the business of delivering and selling electricity and natural gas within their respective service territories, and have
powers incidental thereto and are entitled to all the rights and privileges of and subject to the duties imposed upon electric and natural
gas companies under Massachusetts laws. The locations in public ways for electric transmission and distribution lines and gas
distribution pipelines are obtained from municipal and other state authorities who, in granting these locations, act as agents for the
state. In some cases the actions of these authorities are subject to appeal to the DPU. The rights to these locations are not limited in
time and are subject to the action of these authorities and the legislature. Under Massachusetts law, with the exception of municipal-
owned utilities, no other entity may provide electric or gas delivery service to retail customers within NSTAR’s service territory without
the written consent of NSTAR Electric and/or NSTAR Gas. This consent must be filed with the DPU and the municipality so affected.
The Massachusetts restructuring legislation defines service territories as those territories actually served on July 1, 1997 and following
municipal boundaries to the extent possible. The restructuring legislation further provides that until terminated by law or otherwise,
distribution companies shall have the exclusive obligation to serve all retail customers within their service territories and no other person
shall provide distribution service within such service territories without the written consent of such distribution companies. Pursuant to
the Massachusetts restructuring legislation, the DPU (then, the Department of Telecommunications and Energy) was required to define
service territories for each distribution company, including NSTAR Electric. The DPU subsequently determined that there were
advantages to the exclusivity of service territories and issued a report to the Massachusetts Legislature recommending against, in this
regard, any changes to the restructuring legislation.
PSNH. The NHPUC, pursuant to statutory requirements, has issued orders granting PSNH exclusive franchises to distribute electricity
in the respective areas in which it is now supplying such service.
In addition to the right to distribute electricity as set forth above, the franchises of PSNH include, among others, rights and powers to
manufacture, generate, purchase, and transmit electricity, to sell electricity at wholesale to other utility companies and municipalities
and to erect and maintain certain facilities on certain public highways and grounds, all subject to such consents and approvals of public
authority and others as may be required by law. PSNH’s status as a public utility gives it the ability to petition the NHPUC for the right
to exercise eminent domain for its transmission and distribution services in appropriate circumstances.
PSNH is also subject to certain regulatory oversight by the Maine Public Utilities Commission and the Vermont Public Service Board.
WMECO. WMECO is authorized by its charter to conduct its electric business in the territories served by it, and has locations in the
public highways for transmission and distribution lines. Such locations are granted pursuant to the laws of Massachusetts by the
Department of Public Works of Massachusetts or local municipal authorities and are of unlimited duration, but the rights thereby granted
are not vested. Such locations are for specific lines only and for extensions of lines in public highways. Further similar locations must
be obtained from the Department of Public Works of Massachusetts or the local municipal authorities. In addition, WMECO has been