Eversource 2015 Annual Report Download - page 108

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96
I. Litigation and Legal Proceedings
Eversource, including CL&P, NSTAR Electric, PSNH and WMECO, are involved in legal, tax and regulatory proceedings regarding matters arising
in the ordinary course of business, which involve management’s assessment to determine the probability of whether a loss will occur and, if probable,
its best estimate of probable loss. The Company records and discloses losses when these losses are probable and reasonably estimable, and discloses
matters when losses are probable but not estimable or when losses are reasonably possible. Legal costs related to the defense of loss contingencies
are expensed as incurred.
12. LEASES
Eversource, including CL&P, NSTAR Electric, PSNH and WMECO, has entered into lease agreements, some of which are capital leases, for the use
of data processing and office equipment, vehicles, service centers, and office space. In addition, CL&P, NSTAR Electric, PSNH and WMECO incur
costs associated with leases entered into by Eversource Service and Rocky River Realty Company, which are included below in their respective
operating lease rental expenses and future minimum rental payments. These intercompany lease amounts are eliminated on an Eversource
consolidated basis. The provisions of the Eversource, CL&P, NSTAR Electric, PSNH, and WMECO lease agreements generally contain renewal
options. Certain lease agreements contain payments impacted by the commercial paper rate plus a credit spread or the consumer price index.
Operating lease rental payments charged to expense are as follows:
NSTAR
(Millions of Dollars) Eversource
CL&P Electric PSNH WMECO
2015
$
12.1 $
12.5 $
9.6 $
2.8 $
2.2
2014 14.3 6.0 7.8 1.5 1.2
2013 16.3 8.1 6.7 1.7 2.9
The 2015 rental payments above for CL&P, NSTAR Electric, PSNH, and WMECO include an intercompany rate of return, property tax and
operational expense component paid to Rocky River Realty Company.
Future minimum rental payments, excluding executory costs, such as property taxes, state use taxes, insurance, and maintenance, under long-term
noncancelable leases, as of December 31, 2015 are as follows:
Operating Leases
NSTAR
(Millions of Dollars) Eversource
CL&P
Electric
PSNH
WMECO
2016
$
16.4 $
2.9 $
9.7 $
0.8 $
0.8
2017 13.8 2.0 8.5 0.7 0.7
2018 10.4 1.3 6.5 0.5 0.6
2019 8.5 1.0 5.3 0.4 0.5
2020 6.8 0.7 4.3 0.3 0.5
Thereafter 15.4 1.7 9.0 0.7 1.8
Future minimum lease payments $
71.3 $
9.6 $
43.3 $
3.4 $
4.9
Capital Leases
(Millions of Dollars) Eversource
CL&P
PSNH
2016
$
2.2 $
1.9 $
0.3
2017 2.1 1.9 0.2
2018 2.1 2.0 0.1
2019 2.0
2.0
-
2020 2.0 2.0 -
Thereafter 1.4 1.4 -
Future minimum lease payments 11.8 11.2 0.6
Less amount representing interest 3.6 3.6 -
Present value of future minimum lease payments $
8.2 $
7.6 $
0.6
CL&P entered into certain contracts for the purchase of energy that qualify as leases. These contracts do not have minimum lease payments and
therefore are not included in the tables above. However, such contracts have been included in the contractual obligations table in Note 11B,
“Commitments and Contingencies - Long-Term Contractual Arrangements,” to the financial statements.