Eversource 2014 Annual Report Download - page 45

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rating and profile. Management expects the future operating cash flows of NU, CL&P, NSTAR Electric, PSNH and WMECO, along with the access
to financial markets, will be sufficient to meet any future operating requirements and capital investment forecasted opportunities.
Cash flows provided by operating activities totaled $1.64 billion in 2014, compared with $1.66 billion in 2013 and $1.16 billion in 2012. The 2014
operating cash flows were favorably impacted by approximately $132 million in DOE Damages proceeds resulting from the spent nuclear fuel
litigation received by CL&P, NSTAR Electric, PSNH and WMECO from the Yankee Companies, the absence of 2013 cash disbursements for major
storm restoration costs, the decrease of approximately $130 million in Pension and PBOP Plan cash contributions and changes in the timing of
working capital items. These favorable impacts were more than offset by higher income tax payments in 2014 and the unfavorable cash flow impact
resulting from lower recoveries from customers in 2014, as compared to 2013, relating to regulatory cost recovery tracking mechanisms. For further
information on the spent nuclear fuel litigation, see Note 11C, "Commitments and Contingencies –Contractual Obligations –Yankee Companies," in
this combined Annual Report on Form 10-K. The improved operating cash flows in 2013, as compared to 2012, were due primarily to the addition of
NSTAR, a decrease in cash disbursements for storm restoration, and the absence in 2013 of cash disbursements related to customer bill credits and
merger-related payments made in 2012. Partially offsetting these favorable cash flow impacts was an increase in Pension Plan cash contributions,
increases in fuel inventories, and changes in traditional working capital amounts due primarily to the timing of accounts receivable and accounts
payable.
A summary of our corporate credit ratings and outlooks by Moody's, S&P and Fitch is as follows:
Moody's S&P Fitch
Current Outlook Current Outlook Current Outlook
NU Parent Baa1 Stable A-Positive BBB+ Stable
CL&P Baa1 Stable A-Positive BBB+ Stable
NSTAR Electric A2 Stable A-Positive A Stable
PSNH Baa1 Stable A-Positive BBB+ Stable
WMECO A3 Stable A-Positive BBB+ Stable
A summary of the current credit ratings and outlooks by Moody's, S&P and Fitch for senior unsecured debt of NU parent, NSTAR Electric, and
WMECO and senior secured debt of CL&P and PSNH is as follows:
Moody's S&P Fitch
Current Outlook Current Outlook CurrentOutlook
NU Parent Baa1 Stable BBB+ Positive BBB+ Stable
CL&P A2 Stable A Positive A Stable
NSTAR Electric A2 Stable A-Positive A+ Stable
PSNH A2 Stable A Positive A Stable
WMECO A3 Stable A-Positive A-Stable
On January 31, 2014, Moody's upgraded corporate credit and securities ratings of NU, CL&P and PSNH by one level and WMECO by two levels.
On April 7, 2014, Fitch affirmed the corporate credit ratings and outlook of NU, CL&P, NSTAR Electric, PSNH, WMECO and NSTAR Gas. On
April 25, 2014, S&P affirmed the corporate credit ratings and revised the outlooks to positive from stable of NU, CL&P, NSTAR Electric, PSNH,
WMECO, Yankee Gas and NSTAR Gas.
In 2014, we had cash dividends on common shares of $475.2 million, compared with $462.7 million in 2013. On December 31, 2014, we paid a
common dividend of $0.3925 per share, which was approved by our Board of Trustees on December 3, 2014, to shareholders of record as of
December 15, 2014. On February 3, 2015, our Board of Trustees approved a common dividend payment of $0.4175 per share, payable on March 31,
2015 to shareholders of record as of March 2, 2015. The dividend represented an increase of 6.4 percent over the dividend paid in December 2014.
In 2014, CL&P, NSTAR Electric, PSNH, and WMECO paid $171.2 million, $253 million, $66 million, and $60 million, respectively, in common
dividends to NU parent.
Investments in Property, Plant and Equipment on the statements of cash flows do not include amounts incurred on capital projects but not yet paid,
cost of removal, AFUDC related to equity funds, and the capitalized portions of pension expense. In 2014, investments for NU, CL&P, NSTAR
Electric, PSNH, and WMECO were $1.6 billion, $515.7 million, $465 million, $256.2 million, and $116.2 million, respectively.
Business Development and Capital Expenditures
Our consolidated capital expenditures, including amounts incurred but not paid, cost of removal, AFUDC, and the capitalized portions
of pension expense (all of which are non-cash factors), totaled $1.7 billion in 2014, $1.6 billion in 2013, and $1.5 billion in 2012. These amounts
included $58.3 million in 2014, $44.7 million in 2013, and $43.1 million in 2012, related to information technology and facilities upgrades and
enhancements, primarily at NUSCO and The Rocky River Realty Company.
 On September 16, 2014, NU and Spectra Energy Corp announced Access Northeast, a natural gas pipeline expansion project.
Access Northeast will enhance the Algonquin and Maritimes pipeline systems using existing routes and is expected to be capable of delivering
approximately one billion cubic feet of natural gas per day to New England. NU and Spectra Energy Corp will have equal ownership interest in the
project with the option of additional investors joining in the future. On February 18, 2015, NU, Spectra Energy Corp and National Grid announced
the addition of National Grid as a co-developer in the project for a total ownership interest of 20 percent, with NU and Spectra Energy Corp each