Eversource 2015 Annual Report Download - page 45

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Credit Ratings: On April 23, 2015, S&P upgraded the corporate credit ratings by one level and changed the outlooks to stable from positive of
Eversource
parent, CL&P, NSTAR Electric, PSNH, WMECO, Yankee Gas and NSTAR Gas. On May 19, 2015, Moody’s changed the outlooks of
PSNH and WMECO to positive from stable and affirmed their corporate credit ratings. On June 2, 2015, Fitch changed the outlooks to positive from
stable of CL&P, PSNH and WMECO and affirmed its corporate credit ratings of Eversource
parent, CL&P, NSTAR Electric, PSNH, WMECO and
NSTAR Gas.
A summary of our corporate credit ratings and outlooks by Moody’s, S&P and Fitch is as follows:
Moody’s S&P Fitch
Current Outlook Current Outlook Current Outlook
Eversource Parent Baa1 Stable A Stable BBB+ Stable
CL&P Baa1 Stable A Stable BBB+ Positive
NSTAR Electric A2 Stable A Stable A Stable
PSNH Baa1 Positive A Stable BBB+ Positive
WMECO A3 Positive A Stable BBB+ Positive
A summary of the current credit ratings and outlooks by Moody’s, S&P and Fitch for senior unsecured debt of Eversource parent, NSTAR Electric,
and WMECO and senior secured debt of CL&P and PSNH is as follows:
Moody’s S&P Fitch
Current Outlook Current Outlook Current Outlook
Eversource Parent Baa1 Stable A- Stable BBB+ Stable
CL&P A2 Stable A+ Stable A Positive
NSTAR Electric A2 Stable A Stable A+ Stable
PSNH A2 Positive A+ Stable A Positive
WMECO A3 Positive A Stable A- Positive
Business Development and Capital Expenditures
Our consolidated capital expenditures, including amounts incurred but not paid, cost of removal, AFUDC, and the capitalized portions of pension
expense (all of which are non-cash factors), totaled $1.9 billion in 2015, $1.7 billion in 2014, and $1.6 billion in 2013. These amounts included $102
million in 2015, $58.3 million in 2014, and $44.7 million in 2013 related to information technology and facilities upgrades and enhancements,
primarily at Eversource Service and The Rocky River Realty Company.
Natural Gas Transmission Business:
Access Northeast: Access Northeast is a natural gas pipeline and storage project (the “Project”) being developed jointly by Eversource, Spectra
Energy Corp and National Grid. Access Northeast will enhance the Algonquin and Maritimes & Northeast pipeline systems using existing routes and
will include two new LNG storage tanks and liquefaction and vaporization facilities in Acushnet, Massachusetts that will be connected to the
Algonquin gas pipeline. The Project is expected to be capable of delivering approximately 900 million cubic feet of additional natural gas per day to
New England on peak demand days. Eversource and Spectra Energy Corp each own a 40 percent interest in the Project, with the remaining 20
percent interest owned by National Grid. The total projected cost for both the pipeline and the LNG storage is expected to be approximately $3
billion with anticipated in-service dates commencing in November 2018. The Project is subject to FERC and other federal and state regulatory
approvals. On November 17, 2015, the FERC accepted the Project’s request to initiate the pre-filing review process. Upon completion of the pre-
filing review, a certificate application will be filed with the FERC. In late 2015, the Project bid into the New England Natural Gas Pipeline Capacity
RFP conducted by certain EDCs in Massachusetts and Rhode Island, including NSTAR Electric and WMECO in Massachusetts, and in December
2015 and January 2016, those Massachusetts EDCs filed with the DPU seeking approval of the contracts for pipeline and storage capacity with the
Project. We expect the Rhode Island EDC to file its selected contracts with the Rhode Island regulatory agencies in the first half of 2016. In
February 2016, PSNH filed for approval with the NHPUC, its proposed contract for natural gas pipeline capacity and storage with the Project.
For
further information on the RFP process, see “Regulatory Developments and Rate Matters – General – New England Natural Gas Pipeline Capacity”
in this Management’s Discussion and Analysis of Financial Conditions and Results of Operations.
Electric Transmission Business: Our consolidated electric transmission business capital expenditures increased by $106 million in 2015, as
compared to 2014. A summary of electric transmission capital expenditures by company is as follows:
For the Years Ended December 31,
(Millions of Dollars)
2015 2014 2013
CL&P $ 252.9 $ 259.2 $ 211.9
NSTAR Electric
238.2 223.8 220.8
PSNH 161.2 120.8 99.7
WMECO 116.0 68.5
87.2
NPT
38.3 28.3 39.9
Total Electric Transmission Segment $
806.6 $ 700.6 $ 659.5