Eversource 2015 Annual Report Download - page 27

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all significant EMF epidemiology and laboratory studies, have concluded that the available body of scientific information does not support the
conclusion that EMF affects human health.
In accordance with recommendations of various regulatory bodies and public health organizations, we reduce EMF associated with new transmission
lines by the use of designs that can be implemented without additional cost or at a modest cost. We do not believe that other capital expenditures are
appropriate to minimize unsubstantiated risks.
Global Climate Change and Greenhouse Gas Emission Issues
Global climate change and greenhouse gas emission issues have received an increased focus from state governments and the federal government.
The EPA initiated a rulemaking addressing greenhouse gas emissions and, on December 7, 2009, issued a finding that concluded that greenhouse gas
emissions are “air pollution” that endangers public health and welfare and should be regulated. The largest source of greenhouse gas emissions in the
U.S. is the electricity generating sector. The EPA has mandated greenhouse gas emission reporting beginning in 2011 for emissions for certain
aspects of our business including stationary combustion, volume of gas supplied to large customers and fugitive emissions of SF
6
gas and methane.
We are continually evaluating the regulatory risks and regulatory uncertainty presented by climate change concerns. Such concerns could potentially
lead to additional rules and regulations that impact how we operate our business, both in terms of the generating facilities we own and operate as well
as general utility operations. These could include federal “cap and trade” laws, carbon taxes, fuel and energy taxes, or regulations requiring
additional capital expenditures at our generating facilities. We expect that any costs of these rules and regulations would be recovered from
customers.
Connecticut, New Hampshire and Massachusetts are each members of the Regional Greenhouse Gas Initiative (RGGI), a cooperative effort by nine
northeastern and mid-Atlantic states, to develop a regional program for stabilizing and reducing CO
2
emissions from coal- and oil-fired electric
generating plants. Because CO
2
allowances issued by any participating state are usable across all nine RGGI state programs, the individual state CO
2
trading programs, in the aggregate, form one regional compliance market for CO
2
emissions. The third three-year control period took effect on
January 1, 2015 and extends through December 31, 2017. In this control period, each regulated power plant must hold CO
2
allowances equal to 50
percent of its emissions during each of the first two years of the three-year period, and hold CO
2
allowances equal to 100 percent of its remaining
emissions for the three-year control period at the end of the period.
PSNH anticipates that its generating units will emit between one million and three million tons of CO
2
per year, depending on the capacity factor and
the utilization of the respective generation plant, excluding emissions from the operation of PSNH’s Northern Wood Power Project, which emissions
are an offset. PSNH satisfied its RGGI requirements by purchasing CO
2
allowances at auction. The cost of complying with RGGI requirements is
recoverable from PSNH customers. Current legislation provides that the portion of the RGGI auction proceeds in excess of $1 per allowance will be
refunded to customers.
Because none of Eversource Energy’s other subsidiaries, CL&P, NSTAR Electric or WMECO, currently owns any generating assets (other than
WMECO’s solar photovoltaic facilities that do not emit CO
2
), none of them is required to acquire CO
2
allowances. However, the CO
2
allowance
costs borne by the generating facilities that are utilized by wholesale energy suppliers to satisfy energy supply requirements to CL&P, NSTAR
Electric and WMECO are likely to be included in the overall wholesale rates charged, which costs are then recoverable from customers.
FERC Hydroelectric Project Licensing
Federal Power Act licenses may be issued for hydroelectric projects for terms of 30 to 50 years as determined by the FERC. Upon the expiration of
an existing license, (i) the FERC may issue a new license to the existing licensee, (ii) the United States may take over the project, or (iii) the FERC
may issue a new license to a new licensee, upon payment to the existing licensee of the lesser of the fair value or the net investment in the project,
plus severance damages, less certain amounts earned by the licensee in excess of a reasonable rate of return.
PSNH currently owns nine hydroelectric generating stations with a current claimed capability representing winter rates of approximately 71 MW,
eight of which are licensed by the FERC under long-term licenses that expire on varying dates from 2017 through 2047. PSNH and its hydroelectric
projects are subject to conditions set forth in such licenses, the Federal Power Act and related FERC regulations, including provisions related to the
condemnation of a project upon payment of just compensation, amortization of project investment from excess project earnings, possible takeover of
a project after expiration of its license upon payment of net investment and severance damages and other matters. PSNH is currently completing the
relicensing application for its 6.5 MW Eastman Falls Hydro Station, the license for which expires in 2017.
EMPLOYEES
As of December 31, 2015, Eversource Energy employed a total of 7,943 employees, excluding temporary employees, of which 1,037 were employed
by CL&P, 1,240 were employed by NSTAR Electric, 694 were employed by PSNH, and 291 were employed by WMECO. Approximately 50
percent of our employees are members of the International Brotherhood of Electrical Workers, the Utility Workers Union of America or The United
Steelworkers, and are covered by 14 collective bargaining agreements.
INTERNET INFORMATION
Our website address is www.eversource.com. We make available through our website a link to the SEC’s EDGAR website
(http://www.sec.gov/edgar/searchedgar/companysearch.html), at which site Eversource Energy’s, CL&P’s, NSTAR Electric’s, PSNH’s and
WMECO’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to those reports
may be reviewed. Information contained on the Company’s website or that can be accessed through the website is not incorporated into and does not