Eversource 2014 Annual Report Download - page 59

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Energy Efficiency Programs, which are tracked costs, increased in 2014, as compared to 2013, due primarily to the expanded energy conservation
programs at CL&P in 2014 as a result of 2013 legislative action, and an increase in energy efficiency costs in accordance with the three-year program
guidelines established by the DPU at NSTAR Electric and WMECO, partially offset by a decrease in the amortization of previously deferred costs at
NSTAR Electric.
Taxes Other Than Income Taxes increased in 2014, as compared to 2013, due primarily to an increase in property taxes as a result of both an
increase in utility plant balances and property tax rates.
Interest Expense increased in 2014, as compared to 2013, due primarily to lower interest income related to a decrease in the recovery of previously
deferred transition costs ($9.9 million), an increase in interest on long-term debt ($4 million) as a result of new debt issuances in 2014 and the
absence in 2014 of the favorable impact from the resolution of a Connecticut state income tax audit in 2013.
Other Income, Net decreased in 2014, as compared to 2013, due primarily to lower unrealized gains on the assets supporting the deferred
compensation plans ($13 million), and the absence in 2014 of an insurance policy claim received in 2013 ($1.5 million), partially offset by higher
AFUDC related to equity funds ($6.6 million), and a net gain on the sale of land ($4.5 million).
Income Tax Expense increased in 2014, as compared to 2013, due primarily to higher pre-tax earnings ($26.1 million), and higher state taxes and
various other impacts ($15.3 million). The higher state taxes include a net reduction in the valuation allowance for state tax positions, which is based
on the most recent available data.
Comparison of 2013 to 2012:
Operating Revenues and Expenses
For the Years Ended December 31,
 2013 2012 (a)
Increase/
Percent(Decrease)
Operating Revenues $7,301.2 $6,273.8 $1,027.4 16.4 %
Operating Expenses:
Purchased Power, Fuel and Transmission 2,483.0 2,084.4 398.6 19.1
Operations and Maintenance 1,515.01,583.1 (68.1) (4.3)
Depreciation 610.8 519.0 91.8 17.7
Amortization of Regulatory Assets, Net 206.3 79.8 126.5 (b)
Amortization of Rate Reduction Bonds 42.6 142.0 (99.4) (70.0)
Energy Efficiency Programs 401.9 313.1 88.8 28.4
Taxes Other Than Income Taxes 512.2 434.2 78.0 18.0
Total Operating Expenses 5,771.8 5,155.6 616.2 12.0
Operating Income $1,529.4 $1,118.2 $411.2 36.8 %
(a) The 2012 results include the operations of NSTAR beginning April 10, 2012.
(b) Percent greater than 100 percent not shown as it is not meaningful.
Operating Revenues
For the Years Ended December 31,
 2013 2012 (a)
Increase/
(Decrease) Percent
Electric Distribution $5,362.3 $4,716.5 $645.8 13.7 %
Natural Gas Distribution
855.8 572.9 282.9 49.4
Total Distribution6,218.1 5,289.4 928.7 17.6
Transmission 978.7 861.5 117.2 13.6
Total Regulated Companies 7,196.8 6,150.9 1,045.9 17.0
Other and Eliminations 104.4 122.9 (18.5) (15.1)
Total Operating Revenues $7,301.2 $6,273.8 $1,027.4 16.4 %
(a) The 2012 results include the operations of NSTAR beginning April 10, 2012.
A summary of our retail electric sales and firm natural gas sales were as follows:
For the Years Ended December 31,
2013 2012 (a) Increase Percent
Retail Electric Sales in GWh 55,331 54,808 523 1.0 %
Firm Natural Gas Sales in Million Cubic Feet 98,258 87,527 10,731 12.3
(a) Results include retail electric sales of NSTAR Electric and the firm natural gas sales of NSTAR Gas from January 1, 2012 through
December 31, 2012 for comparative purposes only.