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107
the Company. As of December 31, 2013, a liability of $1 million ($0.4 million for CL&P, and $0.3 million for PSNH) accrued on these
sites represents management's best estimate of its potential remediation costs with respect to these superfund sites.
Environmental Rate Recovery: PSNH, NSTAR Gas and Yankee Gas have rate recovery mechanisms for MGP related environmental
costs. CL&P recovers a certain level of environmental costs currently in rates but does not have an environmental cost recovery
tracking mechanism. Accordingly, changes in CL&P's environmental reserves impact CL&P's Net Income. WMECO does not have a
separate regulatory mechanism to recover environmental costs from its customers, and changes in WMECO's environmental reserves
impact WMECO's Net Income.
B. Long-Term Contractual Arrangements
Estimated Future Annual Costs: The estimated future annual costs of significant long-term contractual arrangements as of
December 31, 2013 are as follows:
NU
(Millions of Dollars)
2014
2015
2016
2017
2018
Thereafter
Total
Supply and Stranded Cost
$
224.2
$
205.2
$
177.7
$
119.9
$
110.4
$
309.3
$
1,146.7
Renewable Energy
194.5
203.8
214.1
211.9
177.3
1,885.7
2,887.3
Peaker CfDs
49.1
46.9
44.3
36.2
28.6
24.7
229.8
Natural Gas Procurement
134.4
117.6
76.5
37.7
24.2
103.9
494.3
Coal, Wood and Other
75.3
15.2
5.0
5.0
5.0
16.8
122.3
Transmission Support Commitments
27.9
26.9
20.5
18.0
22.6
45.2
161.1
Total
$
705.4
$
615.6
$
538.1
$
428.7
$
368.1
$
2,385.6
$
5,041.5
CL&P
(Millions of Dollars)
2014
2015
2016
2017
2018
Thereafter
Total
Supply and Stranded Cost
$
145.6
$
141.1
$
143.7
$
96.2
$
87.1
$
257.6
$
871.3
Renewable Energy
48.9
49.9
50.3
50.8
51.4
560.2
811.5
Peaker CfDs
49.1
46.9
44.3
36.2
28.6
24.7
229.8
Transmission Support Commitments
11.0
10.6
8.1
7.1
8.9
17.8
63.5
Yankee Billings
1.5
1.4
0.8
0.8
0.8
12.3
17.6
Total
$
256.1
$
249.9
$
247.2
$
191.1
$
176.8
$
872.6
$
1,993.7
NSTAR Electric
(Millions of Dollars)
2014
2015
2016
2017
2018
Thereafter
Total
Supply and Stranded Cost
$
36.2
$
36.1
$
15.8
$
5.6
$
5.5
$
36.8
$
136.0
Renewable Energy
87.1
86.3
85.8
81.9
45.4
207.4
593.9
Transmission Support Commitments
8.7
8.4
6.4
5.6
7.0
14.1
50.2
Yankee Billings
0.7
0.5
0.3
0.3
0.3
4.2
6.3
Total
$
132.7
$
131.3
$
108.3
$
93.4
$
58.2
$
262.5
$
786.4
PSNH
(Millions of Dollars)
2014
2015
2016
2017
2018
Thereafter
Total
Supply and Stranded Cost
$
42.4
$
28.0
$
18.2
$
18.1
$
17.8
$
14.9
$
139.4
Renewable Energy
56.8
57.7
67.9
69.0
70.1
995.2
1,316.7
Coal, Wood and Other
75.3
15.2
5.0
5.0
5.0
16.8
122.3
Transmission Support Commitments
5.9
5.7
4.3
3.8
4.8
9.6
34.1
Yankee Billings
0.3
0.3
0.3
0.3
0.3
4.9
6.4
Total
$
180.7
$
106.9
$
95.7
$
96.2
$
98.0
$
1,041.4
$
1,618.9
WMECO
(Millions of Dollars)
2014
2015
2016
2017
2018
Thereafter
Total
Renewable Energy
$
1.7
$
9.9
$
10.1
$
10.2
$
10.4
$
122.9
$
165.2
Transmission Support Commitments
2.3
2.2
1.7
1.5
1.9
3.7
13.3
Yankee Billings
0.4
0.4
0.2
0.2
0.2
3.1
4.5
Total
$
4.4
$
12.5
$
12.0
$
11.9
$
12.5
$
129.7
$
183.0
Supply and Stranded Cost: CL&P, NSTAR Electric and PSNH have various IPP contracts or purchase obligations for electricity,
including payment obligations resulting from the buydown of electricity purchase contracts. Such contracts extend through 2024 for
CL&P, 2030 for NSTAR Electric and 2023 for PSNH.
In addition, CL&P and UI have entered into four CfDs for a total of approximately 787 MW of capacity consisting of three generation
projects and one demand response project. The capacity CfDs extend through 2026 and obligate the utilities to make or receive
payments on a monthly basis to or from the generation facilities based on the difference between a set capacity price and the forward
capacity market prices received by the generation facilities in the ISO-NE capacity markets. The contracts have terms of up to 15 years
beginning in 2009 and are subject to a sharing agreement with UI, whereby UI will share 20 percent of the costs and benefits of these
contracts. CL&P's portion of the costs and benefits of these contracts will be paid by or refunded to CL&P's customers.
The contractual obligations table does not include CL&P's SS or LRS, or NSTAR Electric’s or WMECO’s default service contracts, the
amounts of which vary with customers' energy needs. The contractual obligations table also does not include PSNH's short-term power
supply management.