Eversource 2015 Annual Report Download - page 47

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Distribution Business: A summary of distribution capital expenditures by company is as follows:
For the Years Ended December 31,
(Millions of Dollars) 2015 2014 2013
CL&P:
Basic Business $ 141.1 $ 120.2 $ 60.9
Aging Infrastructure 151.0 118.0 160.7
Load Growth 42.2 66.3 76.9
Total CL&P 334.3 304.5 298.5
NSTAR Electric:
Basic Business 108.7 99.0 98.5
Aging Infrastructure 103.1 104.2 110.6
Load Growth 51.9 43.1 53.6
Total NSTAR Electric 263.7 246.3 262.7
PSNH:
Basic Business 59.2 62.1 22.7
Aging Infrastructure 57.3 45.3 50.5
Load Growth 25.5 27.1 29.3
Total PSNH 142.0 134.5 102.5
WMECO:
Basic Business 18.2 19.0 7.9
Aging Infrastructure 18.5 16.1 24.6
Load Growth 6.6 6.1 9.2
Total WMECO 43.3 41.2 41.7
Total - Electric Distribution (excluding Generation) 783.3 726.5 705.4
Other Distribution - - 0.7
PSNH Generation 33.3 13.1 9.7
WMECO Generation - 7.6 4.5
Natural Gas
212.6 193.7 175.2
Total Electric and Natural Gas Distribution Segment $ 1,029.2 $ 940.9 $ 895.5
For the electric distribution business, basic business includes the purchase of meters, tools, vehicles, information technology, transformer
replacements, equipment facilities, and the relocation of plant. Aging infrastructure relates to reliability and the replacement of overhead lines, plant
substations, underground cable replacement, and equipment failures. Load growth includes requests for new business and capacity additions on
distribution lines and substation additions and expansions.
Natural Gas Distribution Business Expansion and Enhancement: In 2013, in accordance with Connecticut law and regulations, PURA approved a
comprehensive joint natural gas infrastructure expansion plan (expansion plan) filed by Yankee Gas and other Connecticut natural gas distribution
companies. The expansion plan described how Yankee Gas expects to add approximately 82,000 new natural gas heating customers over a 10-year
period. Yankee Gas estimated that its portion of the plan would cost approximately $700 million over 10 years. In January 2015, the PURA
approved a joint settlement agreement proposed by Yankee Gas and other Connecticut natural gas distribution companies and regulatory agencies
that clarified the procedures and oversight criteria applicable to the expansion plan. On March 20, 2015, Yankee Gas filed its initial System
Expansion (SE) Rate reconciliation for 2014. The proposed SE rate was approved by the PURA for implementation as of April 1, 2015, pending
final PURA approval following a contested hearing.
In October 2014, pursuant to new legislation, NSTAR Gas filed the Gas System Enhancement Program (GSEP) with the DPU. NSTAR Gas’
program accelerates the replacement of certain natural gas distribution facilities in the system to within 25 years. The GSEP includes a new tariff
effective January 1, 2016 that provides NSTAR Gas an opportunity to collect the costs for the program on an annual basis through a newly designed
reconciling factor. On April 30, 2015, the DPU approved the GSEP. We expect capital expenditures of approximately $255 million for the period
2016 through 2019 for the GSEP.