Eversource 2015 Annual Report Download - page 88

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million of 4.35 percent Series O First Mortgage Bonds due to mature in 2045. The proceeds of all debt issuances, net of issuance costs, were used to
repay short-term borrowings and fund capital expenditures and working capital.
Long-Term Debt Repayments: On April 1, 2015, CL&P repaid at maturity the $100 million 5.00 percent 2005 Series A First and Refunding
Mortgage Bonds and also redeemed the $62 million 1996A Series 1.55 percent PCRBs that were subject to mandatory tender using short-term
borrowings. On August 3, 2015, WMECO repaid at maturity the $50 million 5.24 percent Series C Senior Notes, using short-term borrowings.
Long-Term Debt Issuance Authorizations: On November 25, 2015, PURA approved Yankee Gas’ request to extend the authorization period for
issuance of up to $125 million in long-term debt from December 31, 2015 to December 31, 2016. On December 4, 2015, the DPU authorized
WMECO to issue up to $100 million in long-term debt for the period through December 31, 2016. On December 4, 2015, the DPU approved
NSTAR Electric’s request to extend the authorization period for issuance of up to $250 million in long-term debt from December 31, 2015 to
December 31, 2016.
Long-Term Debt Provisions: The utility plant of CL&P, PSNH, Yankee Gas and NSTAR Gas is subject to the lien of each company’s respective
first mortgage bond indenture. The Eversource parent, NSTAR Electric and WMECO debt is unsecured. Additionally, the long-term debt
agreements provide that Eversource and certain of its subsidiaries must comply with certain covenants as are customarily included in such
agreements, including a minimum equity requirement for NSTAR Gas. Under the minimum equity requirement, the outstanding long-term debt of
NSTAR Gas must not exceed equity.
CL&P’s obligation to repay the PCRBs is secured by first mortgage bonds. The first mortgage bonds contain similar terms and provisions as the
applicable series of PCRBs. If CL&P fails to meet its obligations under the first mortgage bonds, then the holder of the first mortgage bonds (the
issuer of the PCRBs) would have rights under the first mortgage bonds. CL&P’s $120.5 million tax-exempt PCRBs will be subject to redemption at
par on or after September 1, 2021. All other long-term debt securities are subject to make-whole provisions.
PSNH’s obligation to repay the PCRBs is secured by first mortgage bonds and bond insurance. The first mortgage bonds contain similar terms and
provisions as the PCRBs. If PSNH fails to meet its obligations under the first mortgage bonds, then the holder of the first mortgage bonds (the issuer
of the PCRBs) would have rights under the first mortgage bonds. The PSNH Series A tax-exempt PCRBs are currently callable at 100 percent of par.
The PCRBs bear interest at a rate that is periodically set pursuant to auctions. PSNH is not obligated to purchase these PCRBs, which mature in
2021, from the remarketing agent.
Yankee Gas has certain long-term debt agreements that contain cross-default provisions. No other debt issuances contain cross-default provisions as
of December 31, 2015.
Pre-1983 Spent Nuclear Fuel Obligation: Under the Nuclear Waste Policy Act of 1982, CL&P and WMECO were obligated to pay the DOE for the
costs of disposal of pre-1983 spent nuclear fuel and high-level radioactive waste for the period prior to the sale of their ownership shares in the
Millstone nuclear power stations, which were sold in March 2001. The DOE is responsible for the selection and development of repositories for, and
the disposal of, spent nuclear fuel and high-level radioactive waste. After the sale of the Millstone nuclear power stations in March 2001, CL&P and
WMECO remained responsible for their share of the disposal costs for nuclear fuel used to generate electricity prior to April 7, 1983 (pre-1983 Spent
Nuclear Fuel) and recorded an accrual for the full liability thereof to the DOE. This liability accrued interest costs at the 3-month Treasury bill yield
rate. As of December 31, 2014, CL&P and WMECO’s pre-1983 Spent Nuclear Fuel obligation was $244.5 million and $57.4 million, respectively,
which included accumulated interest costs of $178 million for CL&P and $41.8 million for WMECO.
In late 2015, CL&P and WMECO made payments of $244.6 million and $57.4 million, respectively, to fully satisfy their pre-1983 Spent Nuclear
Fuel obligations to the DOE, which included accumulated interest of $178 million and $41.8 million, respectively. CL&P issued debt to fund its
payment while WMECO liquidated its spent nuclear fuel trust.
In addition, as a result of consolidating CYAPC, Eversource has consolidated $179.5 million and $179.4 million, respectively, in additional pre-1983
spent nuclear fuel obligations to the DOE, which include accumulated interest costs of $130.7 million and $130.6 million as of December 31, 2015
and 2014, respectively. CYAPC maintains a trust to fund amounts due to the DOE for the disposal of pre-1983 spent nuclear fuel. For further
information, see Note 5, “Marketable Securities,” to the financial statements.
Long-Term Debt Maturities: Long-term debt maturities on debt outstanding for the years 2016 through 2020 and thereafter are shown below. These
amounts exclude the CYAPC pre-1983 spent nuclear fuel obligation, net unamortized premiums, discounts and debt issuance costs, and other fair
value adjustments as of December 31, 2015:
(Millions of Dollars)
Eversource CL&P NSTAR Electric PSNH WMECO
2016 $ 200.0 $ - $ 200.0 $ - $ -
2017 745.0 250.0 400.0 70.0 -
2018 960.0 300.0 - 110.0 -
2019 800.0 250.0 - 150.0 -
2020 295.0 - - - 95.0
Thereafter 5,736.6 1,990.3 1,450.0 746.3 420.0
Total $ 8,736.6 $ 2,790.3 $ 2,050.0 $ 1,076.3 $ 515.0