Eversource 2014 Annual Report Download - page 31

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Market performance or changes in assumptions require us to make significant contributions to our pension and other postretirement benefit
plans.
We provide a defined benefit pension plan and other postretirement benefits for a substantial number of employees, former employees and retirees.
Our future pension obligations, costs and liabilities are highly dependent on a variety of factors beyond our control. These factors include estimated
investment returns, interest rates, discount rates, health care cost trends, benefit changes, salary increases and the demographics of plan participants.
If our assumptions prove to be inaccurate, our future costs could increase significantly. In 2014, NU made contributions to the Pension Plans totaling
$171.6 million. We expect to make contributions in 2015 totaling $155 million. In addition, various factors, including underperformance of plan
investments and changes in law or regulation, could increase the amount of contributions required to fund our pension plan in the future. Additional
large funding requirements, when combined with the financing requirements of our construction program, could impact the timing and amount of
future equity and debt financings and negatively affect our financial position, results of operations or cash flows.
Costs of compliance with environmental regulations, including climate change legislation, may increase and have an adverse effect on our
business and results of operations.
Our subsidiaries'operations are subject to extensive federal, state and local environmental statutes, rules and regulations that govern, among other
things, air emissions, water discharges and the management of hazardous and solid waste. Compliance with these requirements requires us to incur
significant costs relating to environmental monitoring, installation of pollution control equipment, emission fees, maintenance and upgrading of
facilities, remediation and permitting. The costs of compliance with existing legal requirements or legal requirements not yet adopted may increase
in the future. An increase in such costs, unless promptly recovered, could have an adverse impact on our business and our financial position, results
of operations or cash flows.
In addition, global climate change issues have received an increased focus from federal and state governments, including EPA's proposed draft
carbon pollution emission guidelines for existing utility generating units, which could potentially lead to additional rules and regulations that impact
how we operate our business, both in terms of the power plants we own and operate as well as general utility operations. Although we would expect
that any costs of these rules and regulations would be recovered from customers, their impact on energy use by customers and the ultimate impact on
our business would be dependent upon the specific rules and regulations adopted and cannot be determined at this time. The impact of these
additional costs to customers could lead to a further reduction in energy consumption resulting in a decline in electricity and gas sales in our service
territories, which would have an adverse impact on our business and financial position, results of operations or cash flows.
Any failure by us to comply with environmental laws and regulations, even if due to factors beyond our control, or reinterpretations of existing
requirements, could also increase costs. Existing environmental laws and regulations may be revised or new laws and regulations seeking to protect
the environment may be adopted or become applicable to us. Revised or additional laws could result in significant additional expense and operating
restrictions on our facilities or increased compliance costs, which may not be fully recoverable in distribution company rates. The cost impact of any
such laws, rules or regulations would be dependent upon the specific requirements adopted and cannot be determined at this time. For further
information, see Item 1,  -, included in this Annual Report on Form 10-K.
As a holding company with no revenue-generating operations, NU parent's liquidity is dependent on dividends from its subsidiaries,
primarily the Regulated companies, its commercial paper program, and its ability to access the long-term debt and equity capital markets.
NU parent is a holding company and as such, has no revenue-generating operations of its own. Its ability to meet its debt service obligations and to
pay dividends on its common shares is largely dependent on the ability of its subsidiaries to pay dividends to or repay borrowings from NU parent,
and/or NU parent's ability to access its commercial paper program or the long-term debt and equity capital markets. Prior to funding NU parent, the
Regulated companies have financial obligations that must be satisfied, including among others, their operating expenses, debt service, preferred
dividends (in the case of CL&P and NSTAR Electric), and obligations to trade creditors. Additionally, the Regulated companies could retain their
free cash flow to fund their capital expenditures in lieu of receiving equity contributions from NU parent. Should the Regulated companies not be
able to pay dividends or repay funds due to NU parent, or if NU parent cannot access its commercial paper programs or the long-term debt and equity
capital markets, NU parent's ability to pay interest, dividends and its own debt obligations would be restricted.
Item 1B. Unresolved Staff Comments
We do not have any unresolved SEC staff comments.