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29
• We project to make capital expenditures of approximately $9.2 billion from 2016 through 2019. Of the $9.2 billion, we expect to invest
approximately $4.9 billion in our electric and natural gas distribution segments and $3.9 billion in our electric transmission segment. In
addition, we project to invest approximately $0.4 billion in information technology and facilities upgrades and enhancements. These
projections do not include capital investments related to Access Northeast or Clean Energy Connect.
Strategic, Legislative, Regulatory, Policy and Other Items:
• On December 18, 2015, the New Hampshire Site Evaluation Committee (NH SEC) accepted NPT’s application as complete allowing the
formal siting process to move forward. The project is expected to be operational in the first half of 2019. On January 28, 2016, NPT bid
into the three-state Clean Energy RFP process.
• The Clean Energy Connect Project is a planned transmission, wind and hydro generation project that we plan to co-develop with
experienced renewable generation companies. On January 28, 2016, the Clean Energy Connect project was bid into the three-state Clean
Energy RFP process. Our investment, should the Clean Energy Connect Project be selected in the RFP process, is currently estimated to be
at least $400 million and will consist of the Massachusetts portion of a new 25-mile, 345 kV transmission line with a 600 MW capacity.
• On January 28, 2016, the DPU approved NSTAR Electric’s, WMECO’s, and NSTAR Gas’ three-year electric and natural gas energy
efficiency plan, which was jointly developed with other Massachusetts electric distribution companies (EDCs) and natural gas distribution
companies. On December 31, 2015, DEEP approved CL&P’s and Yankee Gas’ three-year electric and natural gas C&LM plan, which was
jointly developed with other Connecticut EDCs and natural gas distribution companies. These electric and natural gas energy efficiency
and C&LM plans include the ability to earn performance incentives as well as recover LBR for NSTAR Electric until it is operating under
a decoupled rate structure.
• On January 7, 2015, the DPU issued an order concluding that NSTAR Electric had removed energy-related bad debt costs from base
distribution rates effective January 1, 2006. As a result of the DPU order, in the first quarter of 2015 NSTAR Electric increased its
regulatory assets and reduced its operations and maintenance expense by $24.2 million for energy-related bad debt costs through 2014,
resulting in after-tax earnings of $14.5 million. NSTAR Electric filed for recovery of the energy-related bad debt costs regulatory asset
from customers and on November 20, 2015, the DPU approved NSTAR Electric’s proposed rate increase to recover these costs over a 12-
month period, beginning January 1, 2016.
Overview
Consolidated: A summary of our earnings by business, which also reconciles the non-GAAP financial measures of consolidated non-GAAP earnings
and EPS, as well as EPS by business, to the most directly comparable GAAP measures of consolidated Net Income Attributable to Common
Shareholders and diluted EPS, is as follows:
For the Years Ended December 31,
2015 2014 2013
(Millions of Dollars, Except Per Share Amounts) Amount Per Share Amount Per Share Amount Per Share
Net Income Attributable to Common Shareholders (GAAP)
$
878.5 $
2.76 $
819.5
$ 2.58 $
786.0
$
2.49
Regulated Companies $
884.8 $
2.78 $
830.1
$ 2.61 $
774.9
$
2.45
Eversource Parent and Other Companies 9.5 0.03 11.5
0.04 24.9
0.08
Non
-GAAP Earnings 894.3 2.81 841.6
2.65 799.8
2.53
Integration Costs (after-tax) (15.8) (0.05)
(22.1)
(0.07) (13.8)
(0.04)
Net Income Attributable to Commo
n Shareholders (GAAP) $
878.5 $
2.76 $
819.5
$ 2.58 $
786.0
$
2.49
The 2015 and 2014 integration costs are associated with our branding efforts and severance costs.
Regulated Companies: Our Regulated companies consist of the electric distribution, electric transmission, and natural gas distribution segments.
Generation activities of PSNH and WMECO are included in our electric distribution segment. A summary of our segment earnings and EPS is as
follows:
For the Years Ended December 31,
2015 2014 2013
(Millions of Dollars, Except Per Share Amounts) Amount Per Share Amount Per Share Amount Per Share
Electric Distribution $
507.9 $
1.59 $
462.4
$ 1.45 $
427.0
$
1.35
Electric Transmission 304.5 0.96 295.4
0.93 287.0
0.91
Natural Gas Distribution
72.4 0.23 72.3
0.23 60.9
0.19
Non
-GAAP Earnings 884.8 2.78 830.1
2.61 774.9
2.45
Integration Costs (after-tax) (0.8) - -
- -
-
Net Income
- Regulated Companies $
884.0 $
2.78 $
830.1
$ 2.61 $
774.9
$
2.45
The 2015 Regulated companies’ integration costs include severance in connection with cost saving initiatives.