Eversource 2014 Annual Report Download - page 27

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Because none of NU's other subsidiaries, CL&P, NSTAR Electric or WMECO, currently owns any generating assets (other than WMECO's solar
photovoltaic facilities that do not emit CO2), none of them is required to acquire CO2allowances. However, the CO2allowance costs borne by the
generating facilities that are utilized by wholesale energy suppliers to satisfy energy supply requirements to CL&P, NSTAR Electric and WMECO
will likely be included in the overall wholesale rates charged, which costs are then recoverable from customers.
FERC Hydroelectric Project Licensing
Federal Power Act licenses may be issued for hydroelectric projects for terms of 30 to 50 years as determined by the FERC. Upon the expiration of
an existing license, (i) the FERC may issue a new license to the existing licensee, (ii) the United States may take over the project, or (iii) the FERC
may issue a new license to a new licensee, upon payment to the existing licensee of the lesser of the fair value or the net investment in the project,
plus severance damages, less certain amounts earned by the licensee in excess of a reasonable rate of return.
PSNH owns nine hydroelectric generating stations with a current claimed capability representing winter rates of approximately 71 MW, eight of
which are licensed by the FERC under long-term licenses that expire on varying dates from 2017 through 2047. PSNH and its hydroelectric projects
are subject to conditions set forth in such licenses, the Federal Power Act and related FERC regulations, including provisions related to the
condemnation of a project upon payment of just compensation, amortization of project investment from excess project earnings, possible takeover of
a project after expiration of its license upon payment of net investment and severance damages and other matters. PSNH is currently in the early
stages of relicensing its 6.5 MW Eastman Falls Hydro Station, the license for which expires in 2017.
EMPLOYEES
As of December 31, 2014, NU employed a total of 8,248 employees, excluding temporary employees, of which 1,548 were employed by CL&P,
1,717 were employed by NSTAR Electric 1,048 were employed by PSNH, and 310 were employed by WMECO. Approximately 51 percent of our
employees are members of the International Brotherhood of Electrical Workers, the Utility Workers Union of America or The United Steelworkers,
and are covered by 13 collective bargaining agreements.
INTERNET INFORMATION
Our website address is www.eversource.com. We make available through our website a link to the SEC's EDGAR website
(http://www.sec.gov/edgar/searchedgar/companysearch.html), at which site NU's, CL&P's, NSTAR Electric's, PSNH's and WMECO's Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to those reports may be reviewed.
Information contained on the Company's website or that can be accessed through the website is not incorporated into and does not constitute a part of
this Annual Report on Form 10-K. Printed copies of these reports may be obtained free of charge by writing to our Investor Relations Department at
Northeast Utilities, 107 Selden Street, Berlin, CT 06037.
Item 1A. Risk Factors
In addition to the matters set forth under "Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995" included immediately
prior to Item 1,  above, we are subject to a variety of significant risks. Our susceptibility to certain risks, including those discussed in detail
below, could exacerbate other risks. These risk factors should be considered carefully in evaluating our risk profile.
Cyber breaches, acts of war or terrorism, or grid disturbances could negatively impact our business.
Cyber breaches, acts of war or terrorism, physical attacks or grid disturbances resulting from internal or external sources could target our generation,
transmission and distribution facilities or our information technology systems. Such actions could impair our ability to manage these facilities,
operate our systems effectively, or properly manage our data, networks and programs, resulting in loss of service to customers.
Because our generation and transmission facilities are part of an interconnected regional grid, we face the risk of blackout due to a disruption on a
neighboring interconnected system.
Any such cyber breaches, acts of war or terrorism, physical attacks or grid disturbances could result in a significant decrease in revenues, significant
expense to repair system damage or security breaches, and liability claims, which could have a material adverse impact on our financial position,
results of operations or cash flows.
The unauthorized access to and the misappropriation of confidential and proprietary customer, employee, financial or system operating
information could adversely affect our business operations and adversely impact our reputation.
In the regular course of business we maintain sensitive customer, employee, financial and system operating information and are required by various
federal and state laws to safeguard this information. Cyber intrusions, security breaches, theft or loss of this information by cyber crime or otherwise
could lead to the release of critical operating information or confidential customer or employee information, which could adversely affect our
business operations or adversely impact our reputation, and could result in significant costs, fines and litigation. We maintain adequate privacy
protection liability insurance to cover damages and defense costs arising from unauthorized disclosure of, or failure to protect, private information as
well as costs for notification to, or for credit card monitoring of, customers, employees and other persons in the event of a breach of private
information. This insurance covers amounts paid to avert, prevent or stop a network attack or the disclosure of personal information, and costs of a
qualified forensics firm to determine the cause, source and extent of a network attack or to investigate, examine and analyze our network to find the
cause, source and extent of a data breach. While we have implemented measures designed to prevent cyber-attacks and mitigate their effects should