Eversource 2015 Annual Report Download - page 75

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M. Allowance for Funds Used During Construction
AFUDC represents the cost of borrowed and equity funds used to finance construction and is included in the cost of the Regulated companies’ utility
plant on the balance sheet. The portion of AFUDC attributable to borrowed funds is recorded as a reduction of Other Interest Expense, and the
AFUDC related to equity funds is recorded as Other Income, Net on the statements of income. AFUDC costs are recovered from customers over the
service life of the related plant in the form of increased revenue collected as a result of higher depreciation expense.
The Regulated companies’ average AFUDC rate is based on a FERC-prescribed formula using the cost of a company’s short-term financings and
capitalization (preferred stock, long-term debt and common equity), as appropriate. The average rate is applied to average eligible CWIP amounts to
calculate AFUDC.
AFUDC costs and the weighted-average AFUDC rates were as follows:
Eversource For the Years Ended December 31,
(Millions of Dollars, except percentages)
2015 2014 2013
Borrowed Funds $ 7.2 $ 5.8 $ 4.1
Equity Funds 18.8 13.7 7.1
Total AFUDC $ 26.0 $ 19.5 $ 11.2
Average AFUDC Rate
3.9%
3.4%
2.7%
For the Years Ended December 31,
2015 2014 2013
(Millions of Dollars,
NSTAR NSTAR NSTAR
except percentages)
CL&P Electric PSNH WMECO CL&P Electric PSNH WMECO CL&P Electric PSNH WMECO
Borrowed Funds $ 2.6 $ 2.0 $ 1.0 $ 1.0 $ 1.9 $ 2.0 $ 0.6 $ 0.9 $ 2.2 $ 0.5 $ 0.5 $ 0.5
Equity Funds 5.2 4.3 1.2 1.7 2.9 3.8 0.6 1.7 2.9 - 0.2 1.0
Total AFUDC $ 7.8 $ 6.3 $ 2.2 $ 2.7 $ 4.8 $ 5.8 $ 1.2 $ 2.6 $ 5.1 $ 0.5 $ 0.7 $ 1.5
Average AFUDC Rate 5.5%
3.2%
1.8% 4.4% 3.4% 2.5% 1.8% 5.6% 3.7% 0.5% 1.1%
6.1%
N. Other Income, Net
Items included within Other Income, Net on the statements of income primarily consist of investment income/(loss), interest income, AFUDC related
to equity funds, and equity in earnings of equity method investees. Investment income/(loss) primarily relates to debt and equity securities held in
trust. For further information, see Note 5, “Marketable Securities,” to the financial statements. For further information on AFUDC related to equity
funds, see Note 1M, “Summary of Significant Accounting Policies – Allowance for Funds Used During Construction,” to the financial statements.
O. Other Taxes
Gross receipts taxes levied by the state of Connecticut are collected by CL&P and Yankee Gas from their respective customers. These gross receipts
taxes are shown separately with collections in Operating Revenues and with payments in Taxes Other Than Income Taxes on the statements of
income as follows:
For the Years Ended December 31,
(Millions of Dollars)
2015 2014 2013
Eversource $ 147.2 $ 148.2 $ 144.1
CL&P 128.5 127.9 128.2
As agents for state and local governments, Eversource’s companies that serve customers in Connecticut and Massachusetts collect certain sales taxes
that are recorded on a net basis with no impact on the statements of income.
P. Supplemental Cash Flow Information
Eversource As of and For the Years Ended December 31,
(Millions of Dollars) 2015
2014 2013
Cash Paid During the Year for:
Interest, Net of Amounts Capitalized $ 365.9 $ 349.6 $ 343.3
Income Taxes 10.3 334.2 50.0
Non
-Cash Investing Activities:
Plant Additions Included in Accounts Payable (As of) 216.6 181.9 193.1
As of and For the Years Ended December 31,
2015 2014 2013
NSTAR NSTAR NSTAR
(Millions of Dollars)
CL&P Electric PSNH WMECO CL&P Electric PSNH WMECO CL&P Electric PSNH WMECO
Cash Paid/(Received) During the Year for:
Interest, Net of Amounts Capitalized $ 144.4 $ 75.7 $ 42.3 $ 26.7 $ 144.1 $ 75.3 $ 41.1 $ 25.9 $ 131.6 $ 75.8 $ 43.3 $ 25.8
Income Taxes 55.2 (19.8) 14.4 14.7 135.4 217.1 2.3 25.1 55.0 163.4 (30.1) (69.0)
Non
-Cash Investing Activities:
Plant Additions Included in
Accounts Payable (As of) 76.0 23.5 46.5 27.0 63.5 34.6 39.3 14.2 51.4 57.0 34.9 19.5