Eversource 2015 Annual Report Download - page 56

Download and view the complete annual report

Please find page 56 of the 2015 Eversource annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 136

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136

44
RESULTS OF OPERATIONS – EVERSOURCE ENERGY AND SUBSIDIARIES
The following provides the amounts and variances in operating revenues and expense line items in the statements of income for Eversource for the
years ended December 31, 2015, 2014, and 2013 included in this Annual Report on Form 10-K.
Comparison of 2015 to 2014:
For the Years Ended December 31,
Increase/
(Millions of Dollars) 2015 2014 (Decrease) Percent
Operating Revenues
$
7,954.8 $
7,741.9 $
212.9 2.7 %
Operating Expenses:
Purchased Power, Fuel and Transmission 3,086.9 3,021.6 65.3 2.2
Operations and Maintenance 1,329.3 1,427.6 (98.3) (6.9)
Depreciation 665.9 614.7 51.2 8.3
Amortization of Regulatory Assets, Net 22.3 10.7 11.6 (a)
Energy Efficiency Programs 495.7 473.1 22.6 4.8
Taxes Other Than Income Taxes 590.5 561.4 29.1 5.2
Total Operating Expenses 6,190.6 6,109.1 81.5 1.3
Operating Income 1,764.2 1,632.8 131.4 8.0
Interest Expense 372.4 362.1 10.3 2.8
Other Income, Net 34.2 24.6 9.6 39.0
Income Before Income Tax Expense 1,426.0 1,295.3 130.7 10.1
Income Tax Expense 540.0 468.3 71.7 15.3
Net Income
886.0 827.0 59.0 7.1
Net Income Attributable to Noncontrolling Interests
7.5 7.5 - -
Net Income Attributable to Common Shareholders
$
878.5 $
819.5 $
59.0 7.2 %
(a) Percent greater than 100 percent not shown as it is not meaningful.
Operating Revenues
For the Years Ended December 31,
Increase /
(Millions of Dollars) 2015
2014 (Decrease) Percent
Electric Distribution
$
5,903.6 $
5,663.4 $
240.2 4.2 %
Natural Gas Distribution
995.5 1,007.3 (11.8) (1.2)
Electric Transmission 1,069.1 1,018.2 50.9 5.0
Other and Eliminations (13.4) 53.0 (66.4) (a)
Total Operating Revenues $
7,954.8 $
7,741.9 $
212.9 2.7 %
(a) Percent greater than 100 percent not shown as it is not meaningful.
A summary of our retail electric sales volumes and firm natural gas sales volumes were as follows:
For the Years Ended December 31,
Increase/
2015 2014 (Decrease) Percent
Electric Sales Volumes in GWh:
Traditional 28,982 28,811 171 0.6 %
Decoupled 25,634 25,631 3 -
Total Electric Sales Volumes in GWh 54,616 54,442 174 0.3 %
Firm Natural Gas Sales Volumes in Million Cubic Feet 102,999 104,191 (1,192) (1.1)%
Operating Revenues, which primarily consist of base electric and natural gas distribution revenues and tracked revenues further described below,
increased by $212.9 million in the aggregate in 2015 compared to 2014.
Base electric and natural gas distribution revenues: Base electric distribution segment revenues increased $150.9 million due primarily to CL&P’s
base distribution rate increase, effective December 1, 2014 ($136.3 million) and higher retail sales volumes driven by weather impacts at our non-
decoupled operating companies (traditional). In addition, Operating Revenues increased $19.9 million at CL&P due to the PURA-approved
settlement agreement regarding ADIT, $11 million for the Comprehensive Settlement Agreement associated with the recovery of LBR related to
2009 through 2011 energy efficiency programs at NSTAR Electric, and $20.7 million increase of 2015 LBR recognition at NSTAR Electric
compared to 2014 LBR amounts. The $19.9 million represents CL&P’s revenue requirement from the settlement agreement’s rate increase through
December 31, 2015, and is being collected from customers in rates over a 24-month period beginning December 1, 2015. The impact of colder
winter weather experienced in the first quarter of 2015 and warmer weather in the third quarter of 2015, partially offset by milder winter weather in
the fourth quarter of 2015, all as compared to the same periods in 2014, were the primary drivers of the increase in 2015 retail electric sales volumes
of 0.6 percent and base electric distribution revenues at NSTAR Electric and PSNH.
For CL&P (effective December 1, 2014) and WMECO, fluctuations in retail electric sales volumes do not impact earnings due to their respective
regulatory commission approved revenue decoupling mechanisms. The revenue decoupling mechanisms permit recovery of a base amount of
distribution revenues and break the relationship between sales volumes and revenues recognized. Revenue decoupling mechanisms result in the