Eversource 2014 Annual Report Download - page 79

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The depreciation rates for the various classes of utility property, plant and equipment aggregate to composite rates as follows:
 2014 2013 2012
NU
3.0 %2.8 %2.5 %
CL&P 2.7 2.5 2.5
NSTAR Electric
3.0 2.9 2.8
PSNH 3.0 3.0 3.0
WMECO 3.3 2.9 3.3
The following table summarizes average useful lives of depreciable assets:
Average Depreciable Life
 NU CL&P NSTAR Electric PSNHWMECO
Distribution 34.9 37.5 32.3 32.3 30.9
Transmission 42.5 39.8 44.0 43.7 49.9
Generation 31.9 - - 32.1 25.0
Other 14.2 - - - -
4. DERIVATIVE INSTRUMENTS
The Regulated companies purchase and procure energy and energy-related products, which are subject to price volatility, for their customers. The
costs associated with supplying energy to customers are recoverable through customer rates. The Regulated companies manage the risks associated
with the price volatility of energy and energy-related products through the use of derivative and nonderivative contracts.
Many of the derivative contracts meet the definition of, and are designated as, normal and qualify for accrual accounting under the applicable
accounting guidance. The costs and benefits of derivative contracts that meet the definition of normal are recognized in Operating Expenses or
Operating Revenues on the statements of income, as applicable, as electricity or natural gas is delivered.
Derivative contracts that are not designated as normal are recorded at fair value as current or long-term Derivative Assets or Derivative Liabilities on
the balance sheets. For the Regulated companies, regulatory assets or regulatory liabilities are recorded to offset the fair values of derivatives, as
contract settlements are recovered from, or refunded to, customers in their respective energy supply rates. For NU's unregulated wholesale marketing
contracts that expired on December 31, 2013, changes in fair values of derivatives were included in Net Income.
The gross fair values of derivative assets and liabilities with the same counterparty are offset and reported as net Derivative Assets or Derivative
Liabilities, with current and long-term portions, on the balance sheets. The following table presents the gross fair values of contracts categorized by
risk type and the net amount recorded as current or long-term derivative asset or liability:
As of December 31,
2014 2013
Commodity Supply Net Amount Commodity Supply Net Amount
and Price Risk Recorded as and Price Risk Recorded as
 Management Netting
(1)
a Derivative Management Netting
(1)
a Derivative
Current Derivative Assets:
Level 2:
NU
$ - $ - $ - $ 1.9 $ (0.3) $ 1.6
Level 3:
NU
16.2 (6.6) 9.6 18.4 (9.8) 8.6
CL&P 16.1 (6.6) 9.5 17.1 (9.8) 7.3
NSTAR Electric
0.1 - 0.1 1.2 -1.2
Long-Term Derivative Assets:
Level 2:
NU
$ - $ - $ - $ 0.2 $ - $ 0.2
Level 3:
NU
93.5 (19.2) 74.3 116.2 (42.2) 74.0
CL&P 93.5 (19.2) 74.3 113.6 (42.2) 71.4
Current Derivative Liabilities:
Level 2:
NU
$ (9.8) $ - $ (9.8) $ - $ - $ -
Level 3:
NU
(90.0) -(90.0) (93.7) -(93.7)
CL&P (88.5) -(88.5) (92.2) -(92.2)
NSTA
R Electric (1.5) - (1.5) (1.5) - (1.5)
Level 2:
NU
$ (0.3) $ - $ (0.3) $ - $ - $ -
Level 3:
NU
(409.3) - (409.3) (624.1) - (624.1)
CL&P (406.2) - (406.2) (617.1) - (617.1)
NSTAR Electric
(3.1) - (3.1) (7.0) - (7.0)
(1) Amounts represent derivative assets and liabilities that NU elected to record net on the balance sheets. These amounts are subject to master
netting agreements or similar agreements for which the right of offset exists.