Eversource 2014 Annual Report Download - page 33

21
addition, Hopkinton owns a liquefaction and vaporization plant with above ground storage tanks in Hopkinton, MA. Combined, the two plants'tanks
have an aggregate storage capacity equivalent to 3.5 Bcf of natural gas that is provided to NSTAR Gas under contract.
Franchises
CL&P Subject to the power of alteration, amendment or repeal by the General Assembly of Connecticut and subject to certain approvals, permits
and consents of public authority and others prescribed by statute, CL&P has, subject to certain exceptions not deemed material, valid franchises free
from burdensome restrictions to provide electric transmission and distribution services in the respective areas in which it is now supplying such
service.
In addition to the right to provide electric transmission and distribution services as set forth above, the franchises of CL&P include, among others,
limited rights and powers, as set forth under Connecticut law and the special acts of the General Assembly constituting its charter, to manufacture,
generate, purchase and/or sell electricity at retail, including to provide Standard Service, Supplier of Last Resort service and backup service, to sell
electricity at wholesale and to erect and maintain certain facilities on public highways and grounds, all subject to such consents and approvals of
public authority and others as may be required by law. The franchises of CL&P include the power of eminent domain. Connecticut law prohibits an
electric distribution company from owning or operating generation assets. However, under "An Act Concerning Energy Independence," enacted in
2005, CL&P is permitted to own up to 200 MW of peaking facilities if the PURA determines that such facilities will be more cost effective than
other options for mitigating FMCC and Locational Installed Capacity (LICAP) costs. In addition, under "An Act Concerning Electricity and Energy
Efficiency," enacted in 2007, an electric distribution company, such as CL&P, is permitted to purchase an existing electric generating plant located in
Connecticut that is offered for sale, subject to prior approval from the PURA and a determination by the PURA that such purchase is in the public
interest. Finally, Connecticut law also allows CL&P to submit a proposal to the DEEP to build, own or operate one or more generation facilities up
to 10 MWs using Class I renewable energy.
NSTAR Electric and NSTAR Gas Through their charters, which are unlimited in time, NSTAR Electric and NSTAR Gas have the right to engage
in the business of delivering and selling electricity and natural gas within their respective service territories, and have powers incidental thereto and
are entitled to all the rights and privileges of and subject to the duties imposed upon electric and natural gas companies under Massachusetts laws.
The locations in public ways for electric transmission and distribution lines and natural gas distribution pipelines are obtained from municipal and
other state authorities who, in granting these locations, act as agents for the state. In some cases the actions of these authorities are subject to appeal
to the DPU. The rights to these locations are not limited in time and are subject to the action of these authorities and the legislature. Under
Massachusetts law, with the exception of municipal-owned utilities, no other entity may provide electric or natural gas delivery service to retail
customers within NSTAR's service territory without the written consent of NSTAR Electric and/or NSTAR Gas. This consent must be filed with the
DPU and the municipality so affected.
The Massachusetts restructuring legislation defines service territories as those territories actually served on July 1, 1997 and following municipal
boundaries to the extent possible. The restructuring legislation further provides that until terminated by law or otherwise, distribution companies
shall have the exclusive obligation to serve all retail customers within their service territories and no other person shall provide distribution service
within such service territories without the written consent of such distribution companies. Pursuant to the Massachusetts restructuring legislation, the
DPU (then, the Department of Telecommunications and Energy) was required to define service territories for each distribution company, including
NSTAR Electric. The DPU subsequently determined that there were advantages to the exclusivity of service territories and issued a report to the
Massachusetts Legislature recommending against, in this regard, any changes to the restructuring legislation.
PSNH The NHPUC, pursuant to statutory requirements, has issued orders granting PSNH exclusive franchises to distribute electricity in the
respective areas in which it is now supplying such service.
In addition to the right to distribute electricity as set forth above, the franchises of PSNH include, among others, rights and powers to manufacture,
generate, purchase, and transmit electricity, to sell electricity at wholesale to other utility companies and municipalities and to erect and maintain
certain facilities on certain public highways and grounds, all subject to such consents and approvals of public authority and others as may be required
by law. PSNH's status as a public utility gives it the ability to petition the NHPUC for the right to exercise eminent domain for its transmission and
distribution services in appropriate circumstances.
PSNH is also subject to certain regulatory oversight by the Maine Public Utilities Commission and the Vermont Public Service Board.
WMECO WMECO is authorized by its charter to conduct its electric business in the territories served by it, and has locations in the public
highways for transmission and distribution lines. Such locations are granted pursuant to the laws of Massachusetts by the Department of Public
Works of Massachusetts or local municipal authorities and are of unlimited duration, but the rights thereby granted are not vested. Such locations are
for specific lines only and for extensions of lines in public highways. Further similar locations must be obtained from the Department of Public
Works of Massachusetts or the local municipal authorities. In addition, WMECO has been granted easements for its lines in the Massachusetts
Turnpike by the Massachusetts Turnpike Authority and pursuant to state laws, has the power of eminent domain.
The Massachusetts restructuring legislation applicable to NSTAR Electric (described above) is also applicable to WMECO.
Yankee Gas Yankee Gas holds valid franchises to sell natural gas in the areas in which Yankee Gas supplies natural gas service, which it acquired
either directly or from its predecessors in interest. Generally, Yankee Gas holds franchises to serve customers in areas designated by those franchises
as well as in most other areas throughout Connecticut so long as those areas are not occupied and served by another natural gas utility under a valid
franchise of its own or are not subject to an exclusive franchise of another natural gas utility. Yankee Gas'franchises are perpetual but remain subject
to the power of alteration, amendment or repeal by the General Assembly of the State of Connecticut, the power of revocation by the PURA and
certain approvals, permits and consents of public authorities and others prescribed by statute. Generally, Yankee Gas'franchises include, among