Eversource 2014 Annual Report Download - page 105

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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.
 Renewable energy contracts include non-cancellable commitments under contracts of CL&P, NSTAR Electric, PSNH, and
WMECO for the purchase of energy and capacity from renewable energy facilities. Such contracts extend through 2035 for CL&P, 2030 for NSTAR
Electric, 2033 for PSNH and 2030 for WMECO.
The contractual obligations table does not include long-term commitments signed by CL&P, NSTAR Electric and WMECO, as required by the
PURA and DPU, for the purchase of renewable energy and related products that are contingent on the future construction of energy facilities.
In 2008, CL&P entered into three CfDs with developers of peaking generation units approved by the PURA (Peaker CfDs). These
units have a total of approximately 500 MW of peaking capacity. As directed by the PURA, CL&P and UI have entered into a sharing agreement,
whereby CL&P is responsible for 80 percent and UI for 20 percent of the net costs or benefits of these CfDs. The Peaker CfDs pay the generation
facility owner the difference between capacity, forward reserve and energy market revenues and a cost-of-service payment stream for 30 years. The
ultimate cost or benefit to CL&P under these contracts will depend on the costs of plant operation and the prices that the projects receive for capacity
and other products in the ISO-NE markets. CL&P's portion of the amounts paid or received under the Peaker CfDs will be recoverable from or
refunded to CL&P's customers.
 NU's natural gas distribution businesses have long-term contracts for the purchase, transportation and storage of natural
gas in the normal course of business as part of its portfolio of supplies. These contracts extend through 2029.
 PSNH has entered into various arrangements for the purchase of coal, wood and the transportation services for fuel supply
for its electric generating assets. Also included in the table above is a contract for capacity on the Portland Natural Gas Transmission System
(PNGTS) pipeline that extends through 2018. The costs on this contract of $11.4 million are not recoverable from customers.
 Along with other New England utilities, CL&P, NSTAR Electric, PSNH and WMECO entered into
agreements in 1985 to support transmission and terminal facilities that were built to import electricity from the Hydro-Québec system in Canada.
CL&P, NSTAR Electric, PSNH and WMECO are obligated to pay, over a 30-year period ending in 2020, their proportionate shares of the annual
operation and maintenance expenses and capital costs of those facilities.
The total costs incurred under these agreements were as follows:
NU For the Years Ended December 31,
 2014 2013 2012
(1)
Supply and Stranded Cost $99.2 $141.0 $216.8
Renewable Energy 114.4 91.3 48.7
Peaker CfDs 18.1 51.9 59.3
Natural Gas Procurement
482.5 349.8 243.1
Coal, Wood and Other 120.5 112.6 105.2
Transmission Support Commitments 25.0 24.9 24.8
For the Years Ended December 31,
2014 2013 2012
NSTAR NSTAR NSTAR
 CL&P Electric PSNH WMECO CL&P Electric PSNH WMECO CL&P Electric PSNH WMECO
Supply and Stranded Cost $63.0 $7.0 $26.0 $3.2 $77.6 $32.4 $29.0 $2.0 $158.2 $36.3 $30.5 $0.9
Renewable Energy 0.7 87.4 26.3 - - 84.9 6.4 - - 60.2 4.1 -
Peaker CfDs 18.1 - - - 51.9 - - - 59.3 - - -
Coal, Wood and Other - - 120.5 - - - 112.6 - - - 105.2 -
Transmission Support
Commitments 9.9 7.7 5.3 2.1 9.8 7.7 5.3 2.1 9.6 7.6 5.2 2.0
(1) NSTAR amounts were included in NU beginning April 10, 2012.
C. Contractual Obligations - Yankee Companies
CL&P, NSTAR Electric, PSNH and WMECO have decommissioning and plant closure cost obligations to the Yankee Companies, which have each
completed the physical decommissioning of their respective nuclear facilities and are now engaged in the long-term storage of their spent fuel. The
Yankee Companies collect decommissioning and closure costs through wholesale, FERC-approved rates charged under power purchase agreements
with several New England utilities, including CL&P, NSTAR Electric, PSNH and WMECO. These companies in turn recover these costs from their
customers through state regulatory commission-approved retail rates.
CL&P, NSTAR Electric, PSNH and WMECO's percentage share of the obligations to support the Yankee Companies under FERC-approved rate
tariffs is the same as their respective ownership percentages in the Yankee Companies. For further information on the ownership percentages, see
Note 1J, "Summary of Significant Accounting Policies -Equity Method Investments," to the financial statements.
The Yankee Companies have collected or are currently collecting amounts that management believes are adequate to recover the remaining
decommissioning and closure cost estimates for the respective plants. Management believes CL&P, NSTAR Electric and WMECO will recover their
shares of these decommissioning and closure obligations from their customers. PSNH has already recovered its share of these costs from its
customers.