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83
4. PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION
Utility property, plant and equipment is recorded at original cost. Original cost includes materials, labor, construction overhead and
AFUDC for regulated property. The cost of repairs and maintenance, including planned major maintenance activities, is charged to
Operating Expenses as incurred.
The following tables summarize the NU, CL&P, NSTAR Electric, PSNH and WMECO investments in utility property, plant and
equipment by asset category:
NU
As of December 31,
(Millions of Dollars)
2012
2011
Distribution – Electric
$
11,438.2
$
6,540.4
Distribution - Natural Gas
2,274.2
1,247.6
Transmission
5,541.1
3,541.9
Generation
1,146.6
1,096.0
Electric and Natural Gas Utility
20,400.1
12,425.9
Other (1)
429.3
305.1
Property, Plant and Equipment, Gross
20,829.4
12,731.0
Less: Accumulated Depreciation
Electric and Natural Gas Utility
(5,065.1)
(3,035.5)
Other
(171.5)
(120.2)
Total Accumulated Depreciation
(5,236.6)
(3,155.7)
Property, Plant and Equipment, Net
15,592.8
9,575.3
Construction Work in Progress
1,012.2
827.8
Total Property, Plant and Equipment, Net
$
16,605.0
$
10,403.1
(1) These assets represent unregulated property and are primarily comprised of building improvements at RRR and software and
equipment at NUSCO as of December 31, 2012 and 2011, and telecommunications equipment at NSTAR Communications, Inc. as
of December 31, 2012.
As of December 31,
2012
2011
NSTAR
NSTAR
(Millions of Dollars)
CL&P
Electric
PSNH
WMECO
CL&P
Electric(1)
PSNH
WMECO
Distribution
$
4,691.3
$
4,539.9
$
1,520.1
$
724.2
$
4,419.6
$
4,334.4
$
1,451.6
$
704.3
Transmission
2,796.1
1,529.7
599.2
583.7
2,689.1
1,386.9
546.4
297.4
Generation
-
-
1,125.5
21.1
-
-
1,074.8
21.2
Property, Plant and
Equipment, Gross
7,487.4
6,069.6
3,244.8
1,329.0
7,108.7
5,721.3
3,072.8
1,022.9
Less: Accumulated Depreciation
(1,698.1)
(1,540.1)
(954.0)
(252.1)
(1,596.7)
(1,436.0)
(893.6)
(240.5)
Property, Plant and Equipment, Net 5,789.3
4,529.5
2,290.8
1,076.9
5,512.0
4,285.3
2,179.2
782.4
Construction Work in Progress
363.7
205.8
61.7
213.6
315.4
162.0
77.5
295.4
Total Property, Plant and
Equipment, Net
$ 6,153.0
$ 4,735.3
$ 2,352.5
$ 1,290.5
$ 5,827.4
$ 4,447.3
$
2,256.7
$ 1,077.8
(1) NSTAR Electric amounts are not included in NU consolidated as of December 31, 2011.
Depreciation of utility assets is calculated on a straight-line basis using composite rates based on the estimated remaining useful lives
of the various classes of property (estimated useful life for PSNH distribution). The composite rates are subject to approval by the
appropriate state regulatory agency. The composite rates include a cost of removal component, which is collected from customers
during the life of the property and is recognized as a regulatory liability. Depreciation rates are applied to property from the time it is
placed in service.
Upon retirement from service, the cost of the utility asset is charged to the accumulated provision for depreciation. The actual incurred
removal costs are applied against the related regulatory liability.
The depreciation rates for the various classes of utility property, plant and equipment aggregate to composite rates as follows:
(Percent)
2012
2011
2010
NU
2.5
2.6
2.7
CL&P 2.5 2.4 2.7
NSTAR Electric
2.8
3.0
3.0
PSNH
3.0
2.9
2.8
WMECO
3.3
2.9
2.8