Eversource 2014 Annual Report Download - page 108

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In 2010, NSTAR Electric filed an appeal of the DPU's order with the SJC. NSTAR Electric's position was that it had fully removed the collection of
energy-related bad debt costs from its distribution rates effective January 1, 2006. Therefore, no further adjustment to distribution rates was
warranted. In 2012, the SJC vacated the DPU order and remanded the matter to the DPU for further review.
As of December 31, 2014, NSTAR Electric has a total deferred regulatory asset of approximately $33 million of costs associated with energy-related
bad debt.
On January 7, 2015, the DPU issued an order on remand stating that NSTAR Electric had, in fact, removed energy-related bad debt costs from
distribution rates effective January 1, 2006. The DPU order approved NSTAR Electric's 2005 and 2006 reconciliation filings and ordered NSTAR
Electric and the Massachusetts Attorney General to collaborate on the submission of a proposal for the reconciliation of energy-related bad debt costs
for the open years of 2007 through 2014 by April 7, 2015. Management expects to present a proposal to the Attorney General in the first quarter of
2015 with a decision from the DPU later in 2015.
H. Litigation and Legal Proceedings
NU, including CL&P, NSTAR Electric, PSNH and WMECO, are involved in legal, tax and regulatory proceedings regarding matters arising in the
ordinary course of business, which involve management's assessment to determine the probability of whether a loss will occur and, if probable, its
best estimate of probable loss. The Company records and discloses losses when these losses are probable and reasonably estimable, and discloses
matters when losses are probable but not estimable or when losses are reasonably possible. Legal costs related to the defense of loss contingencies
are expensed as incurred.
12. LEASES
NU, including CL&P, NSTAR Electric, PSNH and WMECO, has entered into lease agreements, some of which are capital leases, for the use of data
processing and office equipment, vehicles, service centers, and office space. In addition, CL&P, NSTAR Electric, PSNH and WMECO incur costs
associated with leases entered into by NUSCO and Rocky River Realty Company, which are included below in their respective operating lease rental
expenses and future minimum rental payments. These intercompany lease amounts are eliminated on an NU consolidated basis. The provisions of
the NU, CL&P, NSTAR Electric, PSNH, and WMECO lease agreements generally contain renewal options. Certain lease agreements contain
payments impacted by the commercial paper rate plus a credit spread or the consumer price index.
Operating lease rental payments charged to expense are as follows:
NSTAR
 NU
(1)
CL&P Electric PSNH WMECO
2014 $14.3 $6.0 $7.8 $1.5 $1.2
2013 16.3 8.1 6.7 1.7 2.9
2012 14.8 8.2 6.2 2.5 3.0
(1) NSTAR amounts were included in NU beginning April 10, 2012.
Future minimum rental payments, excluding executory costs, such as property taxes, state use taxes, insurance, and maintenance, under long-term
noncancelable leases, as of December 31, 2014are as follows:
Operating Leases NSTAR
 NU CL&P Electric PSNH WMECO
2015 $20.1 $4.3 $10.0 $1.1 $1.2
2016 17.6 3.8 8.8 1.0 1.0
2017 14.6 2.6 7.7 0.8 0.8
2018 10.5 1.5 5.8 0.6 0.6
2019 8.6 1.1 4.7 0.5 0.6
Thereafter 22.5 4.0 10.4 1.5 2.5
Future minimum lease payments $93.9 $17.3 $47.4 $5.5 $6.7
Capital Leases
 NU CL&P PSNH
2015 $2.4 $2.0 $0.4
2016 2.2 1.9 0.3
2017 2.1 2.0 0.1
2018 2.1 2.0 0.1
2019 2.0 2.0 -
Thereafter 3.5 3.5 -
Future minimum lease payments 14.3 13.4 0.9
Less amount representing interest 4.9 5.0 -
Present value of future minimum lease payments $9.4 $8.4 $0.9
CL&P entered into certain contracts for the purchase of energy that qualify as leases. These contracts do not have minimum lease payments and
therefore are not included in the tables above. However, such contracts have been included in the contractual obligations table in Note 11B,
"Commitments and Contingencies -Long-Term Contractual Arrangements," to the financial statements.