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82
As of December 31,
2012
2011
NSTAR
NSTAR
(Millions of Dollars)
CL&P
Electric
PSNH
WMECO
CL&P
Electric (1)
PSNH
WMECO
Cost of Removal
$
44.2
$
240.3
$
51.2
$
-
$
63.8
$
235.8
$
53.2
$
7.2
Regulatory Tracker Deferrals
39.1
14.4
20.4
13.7
94.4
11.7
17.3
21.3
AFUDC Transmission Incentive
56.6
4.1
-
9.3
57.7
4.3
-
9.3
Spent Nuclear Fuel Costs and
Contractual Obligations
15.4
-
-
-
15.4
-
-
-
Wholesale Transmission Overcollections
-
-
-
5.3
4.5
-
2.6
9.5
Other Regulatory Liabilities
1.1
32.9
3.8
2.4
11.8
29.7
5.8
2.4
Total Regulatory Liabilities
$
156.4
$
291.7
$
75.4
$
30.7
$
247.6
$
281.5
$
78.9
$
49.7
Less: Current Portion
$
32.1
$
47.5
$
23.0
$
21.0
$
108.3
$
41.6
$
24.5
$
33.1
Total Long-Term Regulatory Liabilities
$
124.3
$
244.2
$
52.4
$
9.7
$
139.3
$
239.9
$
54.4
$
16.6
(1) NSTAR Electric amounts are not included in NU consolidated as of December 31, 2011.
Cost of Removal: NU's Regulated companies currently recover amounts in rates for future costs of removal of plant assets over the
lives of the assets. The estimated cost to remove utility assets from service is recognized as a component of depreciation expense and
the cumulative amounts collected from customers but not yet expended is recognized as a regulatory liability. Expended costs that
exceed amounts collected from customers are recognized as regulatory assets, as they are probable of recovery in future rates.
AFUDC Transmission Incentive: AFUDC was recorded on 100 percent of CL&P and WMECO's CWIP for their NEEWS projects
through May 31, 2011, all of which was reserved as a regulatory liability to reflect rate base recovery for 100 percent of the CWIP as a
result of FERC-approved transmission incentives. Effective June 1, 2011, FERC approved changes to the ISO-NE Tariff in order to
include 100 percent of the NEEWS CWIP in regional rate base. As a result, CL&P and WMECO no longer record AFUDC on NEEWS
CWIP. NSTAR Electric recorded AFUDC on reliability-related projects over $5 million through December 31, 2012, 50 percent of which
was reserved as a regulatory liability to reflect rate base recovery for 50 percent of the CWIP as a result of FERC-approved
transmission incentives.
Spent Nuclear Fuel Costs and Contractual Obligations: CL&P and WMECO currently recover amounts in rates for costs of disposal of
spent nuclear fuel and high-level radioactive waste for the period prior to the sale of their ownership shares in the Millstone nuclear
power stations. Collections in excess of these costs are recorded as regulatory liabilities. CL&P has also established a regulatory
liability for the overrecovery of its proportionate share of the remaining costs, including decommissioning, of the MYAPC nuclear facility.
Wholesale Transmission Overcollections: CL&P, NSTAR Electric, PSNH and WMECO's transmission rates recover total transmission
revenue requirements, recovering all regional and local revenue requirements for providing transmission service. These rates provide
for annual reconciliations to actual costs and the difference between billed and actual costs is deferred. Regulatory liabilities are
recorded for collections in excess of costs. Regulatory assets are recorded for costs in excess of collections, as they are probable of
recovery in future rates.
Other Regulatory Liabilities: Other Regulatory Liabilities primarily includes amounts that are subject to various rate reconciling
mechanisms that, as of each period end date, would result in refunds to customers.