Eversource 2014 Annual Report Download - page 106

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 –In 1998, the Yankee Companies filed separate complaints against the DOE in the Court of Federal Claims seeking
monetary damages resulting from the DOE's failure to begin accepting spent nuclear fuel for disposal by January 31, 1998 pursuant to the terms of
the 1983 spent fuel and high level waste disposal contracts between the Yankee Companies and the DOE (DOE Phase I Damages). Phase I covered
damages for the period 1998 through 2002. Following multiple appeals and cross-appeals, in December 2012, the judgment awarding CYAPC $39.6
million, YAEC $38.3 million and MYAPC $81.7 million became final.
In January 2013, the proceeds from the DOE Phase I Damages Claim were received by the Yankee Companies and transferred to each Yankee
Company's respective decommissioning trust. As a result of NU's consolidation of CYAPC and YAEC, the financial statements reflected an increase
of $77.9 million in marketable securities for CYAPC and YAEC's Phase I Damage awards that were invested in the nuclear decommissioning trusts
in 2013.
In June 2013, FERC approved CYAPC, YAEC and MYAPC to reduce rates in their wholesale power contracts through the application of the DOE
proceeds for the benefit of customers. Changes to the terms of the wholesale power contracts became effective on July 1, 2013. In accordance with
the FERC order, CL&P, NSTAR Electric, PSNH and WMECO began receiving the benefit of the DOE proceeds, and the benefits have been passed
on to customers.
On September 17, 2014, in accordance with the MYAPC refund plan, MYAPC returned a portion of the DOE Phase I Damages proceeds to the
member companies, including CL&P, NSTAR Electric, PSNH, and WMECO, in the amount of $3.2 million, $1.1 million, $1.4 million and $0.8
million, respectively. These amounts reduced receivables at CL&P, NSTAR Electric, PSNH and WMECO.
 -In December 2007, the Yankee Companies each filed subsequent lawsuits against the DOE seeking recovery of actual
damages incurred related to the alleged failure of the DOE to provide for a permanent facility to store spent nuclear fuel generated in years 2001
through 2008 for CYAPC and YAEC and from 2002 through 2008 for MYAPC (DOE Phase II Damages). In November 2013, the court issued a
final judgment awarding CYAPC $126.3 million, YAEC $73.3 million, and MYAPC $35.8 million. On January 14, 2014, the Yankee Companies
received a letter from the U.S. Department of Justice stating that the DOE will not appeal the court's final judgment.
In March and April 2014, CYAPC, YAEC and MYAPC received payment of $126.3 million, $73.3 million and $35.8 million, respectively, of the
DOE Phase II Damages proceeds and made the required informational filing with FERC in accordance with the process and methodology outlined in
the 2013 FERC order. The Yankee Companies returned the DOE Phase II Damages proceeds to the member companies, including CL&P, NSTAR
Electric, PSNH, and WMECO, for the benefit of their respective customers, on June 1, 2014.
As of December 31, 2014, CL&P's refund obligation to customers of $65.4 million was recorded as an offset to the deferred storm restoration costs
regulatory asset, as directed by PURA. NSTAR Electric's, PSNH's and WMECO's refund obligation to customers of $29.1 million, $13.1 million
and $18.1 million, respectively, was recorded as a regulatory liability in each company's respective regulatory tracker mechanisms. Refunds to
customers for these DOE proceeds began in the third quarter of 2014. For further information, see Note 2, "Regulatory Accounting," to the financial
statements.
–In August 2013, the Yankee Companies each filed subsequent lawsuits against the DOE seeking recovery of actual
damages incurred in the years 2009 through 2012. The presiding judge issued a Pre-Trial Scheduling Order on September 3, 2014 that set the case
for trial from June 30 to July 2, 2015.
D. Guarantees and Indemnifications
NU parent provides credit assurances on behalf of its subsidiaries, including CL&P, NSTAR Electric, PSNH and WMECO, in the form of guarantees
in the normal course of business.
NU provided guarantees and various indemnifications on behalf of external parties as a result of the sales of former subsidiaries of NU Enterprises
and the termination of an unregulated business, with maximum exposures either not specified or not material.
NU also issued a guaranty under which, beginning at the time the Northern Pass Transmission line goes into commercial operation, NU will
guarantee the financial obligations of NPT under the TSA in an amount not to exceed $25 million. NU's obligations under the guaranty expire upon
the full, final and indefeasible payment of the guaranteed obligations.
Management does not anticipate a material impact to Net Income as a result of these various guarantees and indemnifications.
The following table summarizes NU's guarantees of its subsidiaries, including CL&P, NSTAR Electric, PSNH and WMECO, as of December 31,
2014:
Maximum Exposure
Subsidiary Description (in millions) Expiration Dates
Various Surety Bonds
(1)
$60.0 2015 -2016
NUSCO and Rocky River Realty Company
Lease Payments for Vehicles and Real Estate $14.4 2019 and 2024
(1) Surety bond expiration dates reflect termination dates, the majority of which will be renewed or extended. Certain surety bonds contain credit
ratings triggers that would require NU parent to post collateral in the event that the unsecured debt credit ratings of NU are downgraded.