Eversource 2012 Annual Report Download - page 67

54
RESULTS OF OPERATIONS – NORTHEAST UTILITIES AND SUBSIDIARIES
The following table provides the amounts and variances in operating revenues and expense line items for the consolidated statements
of income for NU included in this Annual Report on Form 10-K for the years ended December 31, 2012, 2011, and 2010. The year
ended December 31, 2012 amounts include the operations of NSTAR from the date of the merger, April 10, 2012, through
December 31, 2012:
Comparison of 2012 to 2011:
Operating Revenues and Expenses
For the Years Ended December 31,
(Millions of Dollars)
2012
(a)
2011
Increase/
Percent
(Decrease)
Operating Revenues
$
6,273.8
$
4,465.7
$
1,808.1
40.5
%
Operating Expenses:
Purchased Power, Fuel and Transmission
2,084.4
1,657.9
426.5
25.7
Operations and Maintenance
1,583.1
1,095.4
487.7
44.5
Depreciation
519.0
302.2
216.8
71.7
Amortization of Regulatory Assets, Net
79.8
91.1
(11.3)
(12.4)
Amortization of Rate Reduction Bonds
142.0
69.9
72.1
(b)
Energy Efficiency Programs
313.1
131.4
181.7
(b)
Taxes Other Than Income Taxes
434.2
323.6
110.6
34.2
Total Operating Expenses
5,155.6
3,671.5
1,484.1
40.4
Operating Income
$
1,118.2
$
794.2
$
324.0
40.8
%
(a)
The 2012 results include the operations of NSTAR from the date of the merger, April 10, 2012, through December 31, 2012.
(b)
Percent greater than 100 percent not shown as it is not meaningful.
Operating Revenues
For the Years Ended December 31,
(Millions of Dollars)
2012 (a)
2011
Increase
Percent
Electric Distribution
$
4,716.5
$
3,343.1
$
1,373.4
41.1
%
Natural Gas Distribution
572.9
430.8
142.1
33.0
Total Distribution 5,289.4
3,773.9
1,515.5
40.2
Transmission
861.5
635.4
226.1
35.6
Total Regulated Companies
6,150.9
4,409.3
1,741.6
39.5
Other and Eliminations
122.9
56.4
66.5
(b)
Total Operating Revenues
$
6,273.8
$
4,465.7
$
1,808.1
40.5
%
(a) The 2012 results include the operations of NSTAR from the date of the merger, April 10, 2012, through December 31, 2012.
(b) Percent greater than 100 percent not shown as it is not meaningful.
A summary of our retail electric sales and firm natural gas sales were as follows:
For the Years Ended December 31,
2012 (a)
2011
Increase
Percent
Retail Electric Sales in GWh
49,718
33,812
15,906
47.0
%
Firm Natural Gas Sales in Million Cubic Feet 69,894
46,880
23,014
49.1
%
(a) Includes the retail electric and firm natural gas sales of NSTAR from the date of the merger, April 10, 2012, through
December 31, 2012.
Our Operating Revenues increased in 2012, as compared to 2011, due primarily to the addition of NSTAR, which included electric
distribution revenues of approximately $1.7 billion, transmission revenues of approximately $50 million, natural gas revenues of
approximately $200 million and other revenues of approximately $15 million, and the consolidation of CYAPC and YAEC revenues of
approximately $40 million. Excluding the impact of NSTAR's operations and the consolidation of CYAPC and YAEC, our Operating
Revenues decreased due to the following:
 Lower electric distribution segment revenues related to the portions that are included in regulatory commission approved
tracking mechanisms that recover certain incurred costs and do not impact earnings. The tracking mechanisms allow for rates
to be changed periodically with overcollections refunded to customers or undercollections recovered from customers in future
periods. The tracked electric distribution revenues decreased due primarily to lower energy and supply-related costs ($241.8
million), lower CL&P CTA revenues ($46.3 million), lower wholesale revenues ($44.4 million), lower retail transmission
revenues ($17.8 million), partially offset by higher CL&P FMCC delivery-related revenues ($82.4 million), higher SCRC
revenues at PSNH ($34.2 million) and higher CL&P retail SBC revenues ($22.5 million).