Eversource 2015 Annual Report Download - page 22

10
Transmission Projects
During 2015, we were involved in the planning, development and construction of a series of electric transmission projects, including the NEEWS
family of projects; the Greater Hartford Central Connecticut (GHCC) solutions; and Greater Boston Reliability Solutions, which are a series of new
transmission projects over the next five years that will enhance system reliability and improve capacity. We were involved in the planning and
development of Northern Pass, which is our planned HVDC transmission line from the Québec-New Hampshire border to Franklin, New Hampshire
and an associated alternating current radial transmission line between Franklin and Deerfield, New Hampshire; and the Clean Energy Connect
Project, which is a planned transmission, wind and hydro generation project that we intend to develop with experienced renewable generation
companies. For further information, see “Business Development and Capital Expenditures – Electric Transmission Business” in the accompanying
Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Transmission Rate Base
Under our FERC-approved tariff, and with the exception of transmission projects that received specific FERC approval to include CWIP in rate base,
transmission projects generally enter rate base after they are placed in commercial operation. At the end of 2015, our estimated transmission rate
base was approximately $5.2 billion, including approximately $2.4 billion at CL&P, $1.4 billion at NSTAR Electric, $548 million at PSNH, and
$625 million at WMECO.
NATURAL GAS DISTRIBUTION SEGMENT
NSTAR Gas distributes natural gas to approximately 286,000 customers in 51 communities in central and eastern Massachusetts covering 1,067
square miles, and Yankee Gas distributes natural gas to approximately 226,000 customers in 71 cities and towns in Connecticut covering 2,187
square miles. Total throughput (sales and transportation) in 2015 was approximately 71.7 Bcf for NSTAR Gas and 57.8 Bcf for Yankee Gas. Our
natural gas businesses provide firm natural gas sales service to retail customers who require a continuous natural gas supply throughout the year, such
as residential customers who rely on natural gas for heating, hot water and cooking needs, and commercial and industrial customers who choose to
purchase natural gas from Eversource Energy’s natural gas distribution companies. A portion of the storage of natural gas supply for NSTAR Gas
during the winter heating season is provided by Hopkinton LNG Corp., an indirect, wholly-owned subsidiary of Eversource Energy. NSTAR Gas
has access to Hopkinton LNG Corp. facilities in Hopkinton, Massachusetts consisting of a LNG liquefaction and vaporization plant and three above-
ground cryogenic storage tanks having an aggregate capacity of 3.0 Bcf of liquefied natural gas. NSTAR Gas also has access to Hopkinton LNG
Corp. facilities in Acushnet, Massachusetts that include additional storage capacity of 0.5 Bcf and additional vaporization capacity.
Yankee Gas owns a 1.2 Bcf LNG facility in Waterbury, Connecticut, which is used primarily to assist Yankee Gas in meeting its supplier-of-last-
resort obligations and also enables it to provide economic supply and make economic refill of natural gas typically during periods of low demand.
NSTAR Gas and Yankee Gas generate revenues primarily through the sale and/or transportation of natural gas. Predominantly all residential
customers in the NSTAR Gas service territory buy gas supply and delivery from NSTAR Gas while all customers may choose their natural gas
suppliers. Retail natural gas service in Connecticut is partially unbundled: residential customers in Yankee Gas’ service territory buy natural gas
supply and delivery only from Yankee Gas while commercial and industrial customers may choose their natural gas suppliers. NSTAR Gas offers
firm transportation service to all customers who purchase natural gas from sources other than NSTAR Gas while Yankee Gas offers firm
transportation service to its commercial and industrial customers who purchase natural gas from sources other than Yankee Gas. In addition, both
natural gas distribution companies offer interruptible transportation and interruptible natural gas sales service to those high volume commercial and
industrial customers, generally during the colder months, that have the capability to switch from natural gas to an alternative fuel on short notice, for
whom NSTAR Gas and Yankee Gas can interrupt service during peak demand periods or at any other time to maintain distribution system integrity.
The following table shows the sources of the 2015 total Eversource Energy natural gas franchise retail revenues based on categories of customers:
(Thousands of Dollars, except percentages) 2015
% of Total
Residential
$
497,873 54
Commercial 327,439 36
Industrial 93,378 10
Total Retail Natural Gas Revenues
$
918,690 100%
A summary of our firm natural gas sales volumes in million cubic feet and percentage changes for 2015, as compared to 2014, is as follows:
Percentage
2015 2014 Change
Residential 38,455 38,969 (1.3)%
Commercial 43,006 42,977 0.1 %
Industrial 21,538 22,245 (3.2)%
Total 102,999 104,191 (1.1)%
Total, Net of Special Contracts
(1)
98,458 99,500 (1.0)%
(1)
Special contracts are unique to the customers who take service under such an arrangement and generally specify the amount of distribution
revenue to be paid to Yankee Gas regardless of the customers’ usage.
Our firm natural gas sales volumes are subject to many of the same influences as our retail electric sales volumes. In addition, they have benefited
from customer growth in both of our natural gas distribution companies. In 2015, consolidated firm natural gas sales volumes were lower, as