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57
Comparison of 2011 to 2010:
Operating Revenues and Expenses
For the Years Ended December 31,
Increase/
(Millions of Dollars)
2011
2010
(Decrease)
Percent
Operating Revenues
$
4,465.7
$
4,898.2
$
(432.5)
(8.8)
%
Operating Expenses:
Purchased Power, Fuel and Transmission
1,657.9
2,034.5
(376.6)
(18.5)
Operations and Maintenance
1,095.4
1,001.4
94.0
9.4
Depreciation
302.2
300.7
1.5
0.5
Amortization of Regulatory Assets, Net
91.1
90.1
1.0
1.1
Amortization of Rate Reduction Bonds
69.9
232.9
(163.0)
(70.0)
Energy Efficiency Programs
131.4
124.0
7.4
6.0
Taxes Other Than Income Taxes
323.6
314.7
8.9
2.8
Total Operating Expenses
3,671.5
4,098.3
(426.8)
(10.4)
Operating Income
$
794.2
$
799.9
$
(5.7)
(0.7)
%
Operating Revenues
For the Years Ended December 31,
Increase/
(Millions of Dollars)
2011
2010
(Decrease)
Percent
Electric Distribution
$
3,343.1
$
3,802.0
$
(458.9)
(12.1)
%
Natural Gas Distribution
430.8
434.3
(3.5)
(0.8)
Total Distribution
3,773.9
4,236.3
(462.4)
(10.9)
Transmission
635.4
625.6
9.8
1.6
Total Regulated Companies
4,409.3
4,861.9
(452.6)
(9.3)
Other and Eliminations
56.4
36.3
20.1
55.4
NU
$
4,465.7
$
4,898.2
$
(432.5)
(8.8)
%
A summary of our retail electric sales and firm natural gas sales were as follows:
For the Years Ended December 31,
Increase/
2011
2010
(Decrease)
Percent
Retail Electric Sales in GWh
33,812
34,230
(418)
(1.2)
%
Firm Natural Gas Sales in Million Cubic Feet (1)
46,880
43,406
3,474
8.0
%
(1) The 2010 sales volumes for commercial customers have been adjusted to conform to current year presentation.
Our Operating Revenues decreased in 2011, as compared to 2010, due primarily to:
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 ($365.3 million), lower
CTA revenues and stranded cost recoveries ($175.3 million), lower wholesale revenues ($85.2 million) and lower retail other
revenues ($37.9 million), partially offset by higher CL&P FMCC delivery-related revenues ($28.6 million), higher retail transmission
revenues ($12.2 million) and higher other tracked revenues ($28.7 million).
Partially offset by:
The portion of electric distribution segment revenues that impacts earnings increased $135.5 million due primarily to the rate case
decisions that were effective during 2011.
Improved transmission segment revenues resulting from a higher level of investment in transmission infrastructure and the
recovery of higher overall expenses, which are tracked and result in a related increase in revenues. The increase in expenses is
directly related to the increase in transmission plant, including costs associated with higher property taxes, depreciation and
operation and maintenance expenses. These were partially offset by a refund to transmission wholesale customers, compared to
a recovery from those customers in 2010. The transmission rates provide for an annual reconciliation and recovery or refund of
projected costs to actual costs. The difference between projected costs and actual costs are recovered from, or refunded to,
customers each year.