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Northeast Utilities 10-Q 2011
March 2011 Form 10-Q

 ________________________________________________________________________________

[march2011form10qedgar002.gif]


UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q


[X]

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE     
SECURITIES EXCHANGE ACT OF 1934

 

 

 

For the Quarterly Period Ended March 31, 2011     

 

OR     

[  ]

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE     
SECURITIES EXCHANGE ACT OF 1934

 

 

 

For the transition period from ____________ to ____________


Commission
File Number

Registrant; State of Incorporation;
Address; and Telephone Number

I.R.S. Employer
Identification No.

 

 

 

1-5324

NORTHEAST UTILITIES
(a Massachusetts voluntary association)
One Federal Street
Building 111-4
Springfield, Massachusetts 01105
Telephone:  (413) 785-5871

04-2147929

 

 

 

0-00404

THE CONNECTICUT LIGHT AND POWER COMPANY
(a Connecticut corporation)
107 Selden Street
Berlin, Connecticut 06037-1616
Telephone:  (860) 665-5000

06-0303850

 

 

 

1-6392

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
(a New Hampshire corporation)
Energy Park
780 North Commercial Street
Manchester, New Hampshire 03101-1134
Telephone:  (603) 669-4000

02-0181050

 

 

 

0-7624

WESTERN MASSACHUSETTS ELECTRIC COMPANY
(a Massachusetts corporation)
One Federal Street
Building 111-4
Springfield, Massachusetts 01105
Telephone:  (413) 785-5871

04-1961130

______________________________________________________________________________



Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days:


 

Yes

No

 

 

 

 

ü

 


Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  


 

Yes

No

 

 

 

 

ü

 


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.  See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act (check one):


 

Large
Accelerated Filer

 

Accelerated
Filer

 

Non-accelerated
Filer

 

 

 

 

 

 

Northeast Utilities

ü

 

 

 

 

The Connecticut Light and Power Company

 

 

 

 

ü

Public Service Company of New Hampshire

 

 

 

 

ü

Western Massachusetts Electric Company

 

 

 

 

ü


Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act):


 

Yes

No

 

 

 

Northeast Utilities

 

ü

The Connecticut Light and Power Company

 

ü

Public Service Company of New Hampshire

 

ü

Western Massachusetts Electric Company

 

ü


Indicate the number of shares outstanding of each of the issuers' classes of common stock, as of the latest practicable date:


Company - Class of Stock

Outstanding as of April 30, 2011

Northeast Utilities
Common shares, $5.00 par value

176,776,656 shares

 

 

The Connecticut Light and Power Company
Common stock, $10.00 par value

6,035,205 shares

 

 

Public Service Company of New Hampshire
Common stock, $1.00 par value

301 shares

 

 

Western Massachusetts Electric Company
Common stock, $25.00 par value

434,653 shares


Northeast Utilities holds all of the 6,035,205 shares, 301 shares, and 434,653 shares of the outstanding common stock of The Connecticut Light and Power Company, Public Service Company of New Hampshire and Western Massachusetts Electric Company, respectively.  


Public Service Company of New Hampshire and Western Massachusetts Electric Company each meet the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q, and each is therefore filing this Form 10-Q with the reduced disclosure format specified in General Instruction H(2) of Form 10-Q.









GLOSSARY OF TERMS

The following is a glossary of abbreviations or acronyms that are found in this report.  

 

 

CURRENT OR FORMER NU COMPANIES, SEGMENTS OR INVESTMENTS:

 

 

Boulos

E.S. Boulos Company

CL&P

The Connecticut Light and Power Company

HWP

HWP Company, formerly the Holyoke Water Power Company

NGS

Northeast Generation Services Company and subsidiaries

NPT

Northern Pass Transmission LLC, a jointly owned limited liability company, held by NU Transmission Ventures, Inc. and NSTAR Transmission Ventures, Inc. on a 75 percent and 25 percent basis, respectively

NU or the Company

Northeast Utilities and subsidiaries

NU Enterprises

NU Enterprises, Inc., the parent company of Select Energy, NGS, NGS Mechanical, Inc., Select Energy Contracting, Inc. and Boulos  

NUSCO

Northeast Utilities Service Company

NU parent and other companies

NU parent and other companies is comprised of NU parent, NUSCO and other subsidiaries, including HWP, RRR (a real estate subsidiary), and the non-energy-related subsidiaries of Yankee (Yankee Energy Services Company, and Yankee Energy Financial Services Company)

PSNH

Public Service Company of New Hampshire

Regulated companies

NU's Regulated companies, comprised of the electric distribution and transmission segments of CL&P, PSNH and WMECO, the generation activities of PSNH and WMECO, Yankee Gas, a natural gas local distribution company, and NPT

RRR

The Rocky River Realty Company

Select Energy

Select Energy, Inc.

WMECO

Western Massachusetts Electric Company

Yankee

Yankee Energy System, Inc.

Yankee Gas

Yankee Gas Services Company

 

 

REGULATORS:

 

 

 

DOE

U.S. Department of Energy

EPA

U.S. Environmental Protection Agency

DPU

Massachusetts Department of Public Utilities

DPUC

Connecticut Department of Public Utility Control

FERC

Federal Energy Regulatory Commission

MA DEP 

Massachusetts Department of Environmental Protection 

NHPUC

New Hampshire Public Utilities Commission

SEC

Securities and Exchange Commission


OTHER: 

 

 

 

2010 Form 10-K

The Northeast Utilities and subsidiaries combined 2010 Annual Report on Form 10-K as filed with the SEC

2010 Healthcare Act

Patient Protection and Affordable Care Act

2010 Tax Act

Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act

AFUDC 

Allowance For Funds Used During Construction 

AMI

Advanced metering infrastructure

ARO 

Asset Retirement Obligation 

C&LM 

Conservation and Load Management 

CSC

Connecticut Siting Council

CTA 

Competitive Transition Assessment 

CWIP

Construction work in progress

EIA

Energy Independence Act

EPS

Earnings Per Share

ERISA

Employee Retirement Income Security Act of 1974

ES 

Default Energy Service 

ESOP 

Employee Stock Ownership Plan 

ESPP

Employee Stock Purchase Plan

FASB 

Financial Accounting Standards Board 

Fitch

Fitch Ratings

FMCC 

Federally Mandated Congestion Charge 

FTR 

Financial Transmission Rights 

GAAP 

Accounting principles generally accepted in the United States of America 

GHG

Greenhouse Gas

GSC 

Generation Service Charge 

GSRP

Greater Springfield Reliability Project

GWh 

Giga-watt Hours 

HG&E 

Holyoke Gas and Electric, a municipal department of the town of Holyoke, MA

HQ

Hydro-Québec, a corporation wholly-owned by the Québec government, including its divisions that produce, transmit and distribute electricity in Québec, Canada

HVDC

High voltage direct current

Hydro Renewable Energy

H.Q. Hydro Renewable Energy, Inc., a wholly-owned subsidiary of Hydro-Québec

IPP 

Independent Power Producers 

ISO-NE 

ISO New England, Inc., the New England Independent System Operator  

KV 

Kilovolt 

KWh 

Kilowatt-Hours 

LNG

Liquefied natural gas

LOC 

Letter of Credit 

LRS

Last resort service

MGP 

Manufactured Gas Plant 

Money Pool 

Northeast Utilities Money Pool 

Moody's

Moody's Investors Services, Inc.

MW 

Megawatt 

MWh 

Megawatt-Hours 

NEEWS 

New England East-West Solution

Northern Pass

The high voltage direct current transmission line project from Canada into New Hampshire

NU supplemental benefit trust 

The NU Trust Under Supplemental Executive Retirement Plan 

PBO

Projected Benefit Obligation

PBOP 

Postretirement Benefits Other Than Pension 

PBOP Plan

Postretirement Benefits Other Than Pension Plan that provides certain retiree health care benefits, primarily medical and dental, and life insurance benefits

PCRBs 

Pollution Control Revenue Bonds 

Pension Plan

Single uniform noncontributory defined benefit retirement plan

PPA

Pension Protection Act

RECs

Renewable Energy Certificates

Regulatory ROE 

The average cost of capital method for calculating the return on equity related to the distribution and generation business segments excluding the wholesale transmission segment

ROE 

Return on Equity 

RRB 

Rate Reduction Bond or Rate Reduction Certificate

RSUs 

Restricted share units 

S&P

Standard & Poor's Financial Services LLC

SBC 

Systems Benefits Charge 

SCRC 

Stranded Cost Recovery Charge 

SERP 

Supplemental Executive Retirement Plan 

SS

Standard service

TCAM 

Transmission Cost Adjustment Mechanism 

TSA

Transmission Service Agreement

UI 

The United Illuminating Company 

VIE 

Variable interest entity 

WWL Project

The construction of a 16-mile gas pipeline between Waterbury and Wallingford, Connecticut and the increase of vaporization output of Yankee Gas' LNG plant

Yankee Companies

Connecticut Yankee Atomic Power Company, Yankee Atomic Electric Company and Maine Yankee Atomic Power Company




ii




NORTHEAST UTILITIES AND SUBSIDIARIES
THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
WESTERN MASSACHUSETTS ELECTRIC COMPANY AND SUBSIDIARY

TABLE OF CONTENTS



 

Page

 

 

PART I - FINANCIAL INFORMATION

 

 

ITEM 1 - Unaudited Condensed Consolidated Financial Statements for the Following Companies:

 

 

 

Northeast Utilities and Subsidiaries

 

 

Condensed Consolidated Balance Sheets (Unaudited) - March 31, 2011 and December 31, 2010

1

 

Condensed Consolidated Statements of Income (Unaudited) - Three Months Ended March 31, 2011 and 2010

3

 

Condensed Consolidated Statements of Cash Flows (Unaudited) - Three Months Ended March 31, 2011 and 2010

4

 

The Connecticut Light and Power Company and Subsidiaries

 

 

Condensed Consolidated Balance Sheets (Unaudited) - March 31, 2011 and December 31, 2010

5

 

Condensed Consolidated Statements of Income (Unaudited) - Three Months Ended March 31, 2011 and 2010

7

 

Condensed Consolidated Statements of Cash Flows (Unaudited) - Three Months Ended March 31, 2011 and 2010

8

 

Public Service Company of New Hampshire and Subsidiaries

 

 

Condensed Consolidated Balance Sheets (Unaudited) - March 31, 2011 and December 31, 2010

9

 

Condensed Consolidated Statements of Income (Unaudited) - Three Months Ended March 31, 2011 and 2010

11

 

Condensed Consolidated Statements of Cash Flows (Unaudited) - Three Months Ended March 31, 2011 and 2010

12

 

Western Massachusetts Electric Company and Subsidiary

 

 

Condensed Consolidated Balance Sheets (Unaudited) - March 31, 2011 and December 31, 2010

13

 

Condensed Consolidated Statements of Income (Unaudited) - Three Months Ended March 31, 2011 and 2010

15

 

Condensed Consolidated Statements of Cash Flows (Unaudited) - Three Months Ended March 31, 2011 and 2010

16

 

Combined Notes to Condensed Consolidated Financial Statements (Unaudited - all companies)

17

 

Report of Independent Registered Public Accounting Firm

39




iii





 

Page

 

 

ITEM 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations for the following companies:

 

 

Northeast Utilities and Subsidiaries

40

 

The Connecticut Light and Power Company and Subsidiaries

56

 

Public Service Company of New Hampshire and Subsidiaries

59

 

Western Massachusetts Electric Company and Subsidiary

61

 

ITEM 3 - Quantitative and Qualitative Disclosures About Market Risk

63

 

 

ITEM 4 - Controls and Procedures

63

 

PART II - OTHER INFORMATION

 

ITEM 1 - Legal Proceedings

64

 

ITEM 1A - Risk Factors

64

 

ITEM 2 - Unregistered Sales of Equity Securities and Use of Proceeds

64

 

 

ITEM 6 - Exhibits

65

 

SIGNATURES

67

 





iv




This Page Intentionally Left Blank









NORTHEAST UTILITIES AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

(Thousands of Dollars)

 

2011

 

 

2010

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

   Cash and Cash Equivalents

$

15,359

 

$

23,395

   Receivables, Net

 

540,127

 

 

523,644

   Unbilled Revenues

 

166,505

 

 

208,834

   Taxes Receivable

 

86,695

 

 

89,638

   Fuel, Materials and Supplies

 

202,561

 

 

244,043

   Regulatory Assets

 

221,029

 

 

238,699

   Marketable Securities

 

79,337

 

 

78,306

   Prepayments and Other Current Assets

 

95,352

 

 

100,441

Total Current Assets

 

1,406,965

 

 

1,507,000

 

 

 

 

 

 

Property, Plant and Equipment, Net

 

9,716,414

 

 

9,567,726

 

 

 

 

 

 

Deferred Debits and Other Assets:

 

 

 

 

 

   Regulatory Assets

 

2,683,788

 

 

2,756,580

   Goodwill

 

287,591

 

 

287,591

   Marketable Securities

 

52,854

 

 

51,201

   Derivative Assets

 

88,554

 

 

123,242

   Other Long-Term Assets

 

182,366

 

 

179,261

Total Deferred Debits and Other Assets

 

3,295,153

 

 

3,397,875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

14,418,532

 

$

14,472,601

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.




1






NORTHEAST UTILITIES AND SUBSIDIARIES

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

(Thousands of Dollars)

 

2011

 

 

2010

 

 

 

 

 

 

LIABILITIES AND CAPITALIZATION

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

   Notes Payable to Banks

$

189,000 

 

$

267,000 

   Long-Term Debt - Current Portion

 

66,286 

 

 

66,286 

   Accounts Payable

 

352,606 

 

 

417,285 

   Obligations to Third Party Suppliers

 

76,509 

 

 

74,659 

   Accrued Taxes

 

116,226 

 

 

107,067 

   Accrued Interest

 

76,852 

 

 

74,740 

   Regulatory Liabilities

 

114,216 

 

 

99,403 

   Derivative Liabilities

 

84,836 

 

 

71,501 

   Other Current Liabilities

 

130,656 

 

 

167,206 

Total Current Liabilities

 

1,207,187 

 

 

1,345,147 

 

 

 

 

 

 

Rate Reduction Bonds

 

164,704 

 

 

181,572 

 

 

 

 

 

 

Deferred Credits and Other Liabilities:

 

 

 

 

 

   Accumulated Deferred Income Taxes

 

1,709,012 

 

 

1,636,750 

   Regulatory Liabilities

 

313,256 

 

 

339,655 

   Derivative Liabilities

 

885,680 

 

 

909,668 

   Accrued Pension

 

810,265 

 

 

802,195 

   Other Long-Term Liabilities

 

694,672 

 

 

695,915 

Total Deferred Credits and Other Liabilities

 

4,412,885 

 

 

4,384,183 

 

 

 

 

 

 

Capitalization:

 

 

 

 

 

   Long-Term Debt

 

4,630,724 

 

 

4,632,866 

 

 

 

 

 

 

   Noncontrolling Interest in Consolidated Subsidiary:

 

 

 

 

 

     Preferred Stock Not Subject to Mandatory Redemption

 

116,200 

 

 

116,200 

 

 

 

 

 

 

   Equity:

 

 

 

 

 

     Common Shareholders' Equity:

 

 

 

 

 

       Common Shares

 

979,876 

 

 

978,909 

       Capital Surplus, Paid In

 

1,781,419 

 

 

1,777,592 

       Retained Earnings

 

1,518,099 

 

 

1,452,777 

       Accumulated Other Comprehensive Loss

 

(41,267)

 

 

(43,370)

       Treasury Stock

 

(352,792)

 

 

(354,732)

     Common Shareholders' Equity

 

3,885,335 

 

 

3,811,176 

     Noncontrolling Interests

 

1,497 

 

 

1,457 

   Total Equity

 

3,886,832 

 

 

3,812,633 

Total Capitalization

 

8,633,756 

 

 

8,561,699 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Capitalization

$

14,418,532 

 

$

14,472,601 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 




2






NORTHEAST UTILITIES AND SUBSIDIARIES

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

(Thousands of Dollars, Except Share Information)

 

2011

 

 

2010

 

 

 

 

 

 

Operating Revenues

$

1,235,251 

 

$

1,339,420 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

   Fuel, Purchased and Net Interchange Power

 

474,109 

 

 

603,349 

   Other Operating Expenses

 

251,978 

 

 

248,273 

   Maintenance

 

67,764 

 

 

45,637 

   Depreciation

 

73,951 

 

 

78,656 

   Amortization of Regulatory Assets/(Liabilities), Net

 

34,407 

 

 

(8,327)

   Amortization of Rate Reduction Bonds

 

17,282 

 

 

59,570 

   Taxes Other Than Income Taxes

 

88,403 

 

 

85,599 

      Total Operating Expenses

 

1,007,894 

 

 

1,112,757 

Operating Income

 

227,357 

 

 

226,663 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

   Interest on Long-Term Debt

 

57,399 

 

 

57,270 

   Interest on Rate Reduction Bonds

 

2,578 

 

 

6,690 

   Other Interest

 

(1,428)

 

 

3,302 

      Interest Expense

 

58,549 

 

 

67,262 

Other Income, Net

 

10,313 

 

 

8,057 

Income Before Income Tax Expense

 

179,121 

 

 

167,458 

Income Tax Expense

 

63,537 

 

 

79,857 

Net Income

 

115,584 

 

 

87,601 

Net Income Attributable to Noncontrolling Interests

 

1,429 

 

 

1,390 

Net Income Attributable to Controlling Interests

$

114,155 

 

$

86,211 

 

 

 

 

 

 

Basic and Diluted Earnings Per Common Share

$

0.64 

 

$

0.49 

 

 

 

 

 

 

Dividends Declared Per Common Share

$

0.28 

 

$

0.26 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding:

 

 

 

 

 

   Basic

 

177,188,207 

 

 

176,349,762 

   Diluted

 

177,480,996 

 

 

176,537,472 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 




3






NORTHEAST UTILITIES AND SUBSIDIARIES

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

(Thousands of Dollars)

 

2011

 

 

2010

 

 

 

 

 

 

Operating Activities:

 

 

 

 

 

   Net Income

$

115,584 

 

$

87,601 

   Adjustments to Reconcile Net Income to Net Cash Flows

 

 

 

 

 

     Provided by Operating Activities:

 

 

 

 

 

      Bad Debt Expense

 

4,947 

 

 

9,556 

      Depreciation

 

73,951 

 

 

78,656 

      Deferred Income Taxes

 

52,429 

 

 

33,248 

      Pension and PBOP Expense, Net of PBOP Contributions

 

28,231 

 

 

23,331 

      Regulatory Overrecoveries, Net

 

44,420 

 

 

6,066 

      Amortization of Regulatory Assets/(Liabilities), Net

 

34,407 

 

 

(8,327)

      Amortization of Rate Reduction Bonds

 

17,282 

 

 

59,570 

      Derivative Assets and Liabilities

 

(3,651)

 

 

(2,594)

      Other

 

(1,776)

 

 

(41,434)

   Changes in Current Assets and Liabilities:

 

 

 

 

 

      Receivables and Unbilled Revenues, Net

 

8,199 

 

 

(7,258)

      Fuel, Materials and Supplies

 

42,990 

 

 

48,431 

      Taxes Receivable/Accrued

 

18,312 

 

 

4,639 

      Accounts Payable

 

(29,278)

 

 

(46,188)

      Other Current Assets and Liabilities

 

(33,281)

 

 

(19,594)

Net Cash Flows Provided by Operating Activities

 

372,766 

 

 

225,703 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

Investments in Property, Plant and Equipment

 

(236,689)

 

 

(202,487)

Proceeds from Sales of Marketable Securities

 

38,646 

 

 

21,331 

Purchases of Marketable Securities

 

(39,230)

 

 

(21,825)

Other Investing Activities

 

328 

 

 

(478)

Net Cash Flows Used in Investing Activities

 

(236,945)

 

 

(203,459)

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

Cash Dividends on Common Shares

 

(48,588)

 

 

(45,088)

Cash Dividends on Preferred Stock

 

(1,390)

 

 

(1,390)

Decrease in Short-Term Debt

 

(78,000)

 

 

Issuance of Long-Term Debt

 

 

 

95,000 

Retirements of Rate Reduction Bonds

 

(16,868)

 

 

(66,569)

Other Financing Activities

 

989 

 

 

(1,137)

Net Cash Flows Used in Financing Activities

 

(143,857)

 

 

(19,184)

Net (Decrease)/Increase in Cash and Cash Equivalents

 

(8,036)

 

 

3,060 

Cash and Cash Equivalents - Beginning of Period

 

23,395 

 

 

26,952 

Cash and Cash Equivalents - End of Period

$

15,359 

 

$

30,012 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.




4






THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

(Thousands of Dollars)

 

2011

 

 

2010

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

   Cash

$

3,812

 

$

9,762

   Receivables, Net

 

318,905

 

 

317,530

   Accounts Receivable from Affiliated Companies

 

825

 

 

822

   Unbilled Revenues

 

90,141

 

 

116,392

   Taxes Receivable

 

3,288

 

 

48,360

   Regulatory Assets

 

156,523

 

 

157,530

   Materials and Supplies

 

65,224

 

 

63,811

   Prepayments and Other Current Assets

 

38,027

 

 

27,466

Total Current Assets

 

676,745

 

 

741,673

 

 

 

 

 

 

Property, Plant and Equipment, Net

 

5,644,846

 

 

5,586,504

 

 

 

 

 

 

Deferred Debits and Other Assets:

 

 

 

 

 

   Regulatory Assets

 

1,684,849

 

 

1,721,416

   Derivative Assets

 

81,085

 

 

115,870

   Other Long-Term Assets

 

98,971

 

 

89,729

Total Deferred Debits and Other Assets

 

1,864,905

 

 

1,927,015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

8,186,496

 

$

8,255,192

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 




5






THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES  

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

(Thousands of Dollars)

 

2011

 

 

2010

 

 

 

 

 

 

LIABILITIES AND CAPITALIZATION

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

   Notes Payable to Banks

$

10,000 

 

$

   Notes Payable to Affiliated Companies

 

25,175 

 

 

6,225 

   Long-Term Debt - Current Portion

 

62,000 

 

 

62,000 

   Accounts Payable

 

172,154 

 

 

204,868 

   Accounts Payable to Affiliated Companies

 

53,133 

 

 

53,207 

   Obligations to Third Party Suppliers

 

69,685 

 

 

68,692 

   Accrued Taxes

 

100,989 

 

 

92,061 

   Accrued Interest

 

33,982 

 

 

42,548 

   Regulatory Liabilities

 

72,301

 

 

75,716 

   Derivative Liabilities

 

63,272 

 

 

46,781 

   Other Current Liabilities

 

50,764 

 

 

46,209 

Total Current Liabilities

 

713,455 

 

 

698,307 

 

 

 

 

 

 

Deferred Credits and Other Liabilities:

 

 

 

 

 

   Accumulated Deferred Income Taxes

 

1,106,275 

 

 

1,068,344 

   Regulatory Liabilities

 

179,208

 

 

206,394 

   Derivative Liabilities

 

862,070 

 

 

883,091 

   Accrued Pension

 

41,093 

 

 

42,486 

   Other Long-Term Liabilities

 

317,544 

 

 

321,793 

Total Deferred Credits and Other Liabilities

 

2,506,190 

 

 

2,522,108 

 

 

 

 

 

 

Capitalization:

 

 

 

 

 

   Long-Term Debt

 

2,521,295 

 

 

2,521,102 

 

 

 

 

 

 

   Preferred Stock Not Subject to Mandatory Redemption

 

116,200 

 

 

116,200 

 

 

 

 

 

 

   Common Stockholder's Equity:

 

 

 

 

 

     Common Stock

 

60,352 

 

 

60,352 

     Capital Surplus, Paid In

 

1,605,604 

 

 

1,605,275 

     Retained Earnings

 

666,002 

 

 

734,561 

     Accumulated Other Comprehensive Loss

 

(2,602)

 

 

(2,713)

   Common Stockholder's Equity

 

2,329,356 

 

 

2,397,475 

Total Capitalization

 

4,966,851 

 

 

5,034,777 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Capitalization

$

8,186,496 

 

$

8,255,192 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 




6






THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

(Thousands of Dollars)

 

2011

 

 

2010

 

 

 

 

 

 

Operating Revenues

$

673,682 

 

$

794,980

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

   Fuel, Purchased and Net Interchange Power

 

255,369 

 

 

362,820

   Other Operating Expenses

 

134,262 

 

 

134,813

   Maintenance

 

40,782 

 

 

21,838

   Depreciation

 

39,475 

 

 

47,525

   Amortization of Regulatory Assets, Net

 

19,343 

 

 

1,671

   Amortization of Rate Reduction Bonds

 

 

 

43,283

   Taxes Other Than Income Taxes

 

58,468 

 

 

57,531

      Total Operating Expenses

 

547,699 

 

 

669,481

Operating Income

 

125,983 

 

 

125,499

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

   Interest on Long-Term Debt

 

33,328 

 

 

33,632

   Interest on Rate Reduction Bonds

 

 

 

3,032

   Other Interest

 

(3,575)

 

 

1,863

      Interest Expense

 

29,753 

 

 

38,527

Other Income, Net

 

4,606 

 

 

4,933

Income Before Income Tax Expense

 

100,836 

 

 

91,905

Income Tax Expense

 

36,499 

 

 

43,493

Net Income

$

64,337 

 

$

48,412

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 




7






THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

(Thousands of Dollars)

 

2011

 

 

2010

 

 

 

 

 

 

Operating Activities:

 

 

 

 

 

   Net Income

$

64,337 

 

$

48,412 

   Adjustments to Reconcile Net Income to Net Cash Flows

 

 

 

 

 

     Provided by Operating Activities:

 

 

 

 

 

      Bad Debt Expense

 

679 

 

 

2,832 

      Depreciation

 

39,475 

 

 

47,525 

      Deferred Income Taxes

 

28,592 

 

 

18,956 

      Pension and PBOP Expense, Net of PBOP Contributions

 

6,075 

 

 

3,602 

      Regulatory Overrecoveries/(Underrecoveries), Net

 

22,972 

 

 

(230)

      Amortization of Regulatory Assets, Net

 

19,343 

 

 

1,671 

      Amortization of Rate Reduction Bonds

 

 

 

43,283 

      Other

 

(20,129)

 

 

(21,431)

   Changes in Current Assets and Liabilities:

 

 

 

 

 

      Receivables and Unbilled Revenues, Net

 

16,187 

 

 

8,773 

      Materials and Supplies

 

(1,412)

 

 

2,706 

      Taxes Receivable/Accrued

 

57,078 

 

 

340 

      Accounts Payable

 

(14,135)

 

 

(25,350)

      Other Current Assets and Liabilities

 

(14,099)

 

 

(7,250)

Net Cash Flows Provided by Operating Activities

 

204,963 

 

 

123,839 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

Investments in Property, Plant and Equipment

 

(106,829)

 

 

(97,725)

Decrease in NU Money Pool Lending

 

 

 

63,100 

Other Investing Activities

 

(45)

 

 

2,275 

Net Cash Flows Used in Investing Activities

 

(106,874)

 

 

(32,350)

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

Cash Dividends on Common Stock

 

(131,507)

 

 

(35,849)

Cash Dividends on Preferred Stock

 

(1,390)

 

 

(1,390)

Increase in Short-Term Debt

 

10,000 

 

 

Increase in NU Money Pool Borrowings

 

18,950 

 

 

Retirements of Rate Reduction Bonds

 

 

 

(50,686)

Other Financing Activities

 

(92)

 

 

(82)

Net Cash Flows Used in Financing Activities

 

(104,039)

 

 

(88,007)

Net (Decrease)/Increase in Cash

 

(5,950)

 

 

3,482 

Cash - Beginning of Period

 

9,762 

 

 

45 

Cash - End of Period

$

3,812 

 

$

3,527 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.




8






PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

(Thousands of Dollars)

 

2011

 

 

2010

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

   Cash

$

3,348

 

$

2,559

   Receivables, Net

 

93,281

 

 

105,070

   Accounts Receivable from Affiliated Companies

 

898

 

 

858

   Notes Receivable from Affiliated Companies

 

16,100

 

 

-

   Unbilled Revenues

 

43,005

 

 

48,691

   Taxes Receivable

 

2,056

 

 

12,564

   Fuel, Materials and Supplies

 

101,540

 

 

116,074

   Regulatory Assets

 

28,594

 

 

39,215

   Prepayments and Other Current Assets

 

19,118

 

 

20,098

Total Current Assets

 

307,940

 

 

345,129

 

 

 

 

 

 

Property, Plant and Equipment, Net

 

2,088,560

 

 

2,053,281

 

 

 

 

 

 

Deferred Debits and Other Assets:

 

 

 

 

 

   Regulatory Assets

 

376,982

 

 

395,203

   Other Long-Term Assets

 

82,901

 

 

85,508

Total Deferred Debits and Other Assets

 

459,883

 

 

480,711

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

2,856,383

 

$

2,879,121

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 




9






PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES  

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

(Thousands of Dollars)

 

2011

 

 

2010

 

 

 

 

 

 

LIABILITIES AND CAPITALIZATION

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

   Notes Payable to Banks

$

20,000

 

$

30,000 

   Notes Payable to Affiliated Companies

 

-

 

 

47,900 

   Accounts Payable

 

53,986

 

 

85,324 

   Accounts Payable to Affiliated Companies

 

39,439

 

 

20,007 

   Accrued Interest

 

16,055

 

 

10,231 

   Regulatory Liabilities

 

13,666

 

 

8,365 

   Derivative Liabilities

 

9,835

 

 

12,834 

   Other Current Liabilities

 

39,810

 

 

36,726 

Total Current Liabilities

 

192,791

 

 

251,387 

 

 

 

 

 

 

Rate Reduction Bonds

 

125,549

 

 

138,247 

 

 

 

 

 

 

Deferred Credits and Other Liabilities:

 

 

 

 

 

   Accumulated Deferred Income Taxes

 

325,977

 

 

314,996 

   Regulatory Liabilities

 

57,881

 

 

58,631 

   Accrued Pension

 

264,550

 

 

261,096 

   Other Long-Term Liabilities

 

92,961

 

 

91,952 

Total Deferred Credits and Other Liabilities

 

741,369

 

 

726,675 

 

 

 

 

 

 

Capitalization:

 

 

 

 

 

   Long-Term Debt

 

836,392

 

 

836,365 

 

 

 

 

 

 

   Common Stockholder's Equity:

 

 

 

 

 

     Common Stock

 

-

 

 

     Capital Surplus, Paid In

 

599,729

 

 

579,577 

     Retained Earnings

 

360,228

 

 

347,471 

     Accumulated Other Comprehensive Income/(Loss)

 

325

 

 

(601)

   Common Stockholder's Equity

 

960,282

 

 

926,447 

Total Capitalization

 

1,796,674

 

 

1,762,812 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Capitalization

$

2,856,383

 

$

2,879,121 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 




10






PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

(Thousands of Dollars)

 

2011

 

 

2010

 

 

 

 

 

 

Operating Revenues

$

269,470 

 

$

258,568 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

   Fuel, Purchased and Net Interchange Power

 

87,132 

 

 

103,771 

   Other Operating Expenses

 

56,422 

 

 

63,125 

   Maintenance

 

18,704 

 

 

16,002 

   Depreciation

 

17,907 

 

 

15,968 

   Amortization of Regulatory Assets/(Liabilities), Net

 

15,567 

 

 

(5,694)

   Amortization of Rate Reduction Bonds

 

13,135 

 

 

12,391 

   Taxes Other Than Income Taxes

 

13,667 

 

 

13,079 

      Total Operating Expenses

 

222,534 

 

 

218,642 

Operating Income

 

46,936 

 

 

39,926 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

   Interest on Long-Term Debt

 

8,624 

 

 

9,512 

   Interest on Rate Reduction Bonds

 

1,893 

 

 

2,721 

   Other Interest

 

(60)

 

 

179 

      Interest Expense

 

10,457 

 

 

12,412 

Other Income, Net

 

4,459 

 

 

2,412 

Income Before Income Tax Expense

 

40,938 

 

 

29,926 

Income Tax Expense

 

13,474 

 

 

14,116 

Net Income

$

27,464 

 

$

15,810 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 




11






PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

(Thousands of Dollars)

 

2011

 

 

2010

 

 

 

 

 

 

Operating Activities:

 

 

 

 

 

   Net Income

$

27,464 

 

$

15,810 

   Adjustments to Reconcile Net Income to Net Cash Flows

 

 

 

 

 

     Provided by Operating Activities:

 

 

 

 

 

      Bad Debt Expense

 

1,850 

 

 

2,496 

      Depreciation

 

17,907 

 

 

15,968 

      Deferred Income Taxes

 

3,672 

 

 

8,474 

      Pension and PBOP Expense, Net of PBOP Contributions

 

5,854 

 

 

6,911 

      Regulatory Underrecoveries, Net

 

(1,271)

 

 

(2,073)

      Amortization of Regulatory Assets/(Liabilities), Net

 

15,567 

 

 

(5,694)

      Amortization of Rate Reduction Bonds

 

13,135 

 

 

12,391 

      Other

 

4,140 

 

 

(15,719)

   Changes in Current Assets and Liabilities:

 

 

 

 

 

      Receivables and Unbilled Revenues, Net

 

10,077 

 

 

378 

      Fuel, Materials and Supplies

 

16,043 

 

 

14,971 

      Taxes Receivable/Accrued

 

18,971 

 

 

6,275 

      Accounts Payable

 

(2,160)

 

 

(1,599)

      Other Current Assets and Liabilities

 

8,361 

 

 

14,085 

Net Cash Flows Provided by Operating Activities

 

139,610 

 

 

72,674 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

Investments in Property, Plant and Equipment

 

(57,718)

 

 

(54,139)

Increase in NU Money Pool Lending

 

(16,100)

 

 

Other Investing Activities

 

369 

 

 

(2,760)

Net Cash Flows Used in Investing Activities

 

(73,449)

 

 

(56,899)

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

Cash Dividends on Common Stock

 

(14,707)

 

 

(12,645)

Decrease in Short-Term Debt

 

(10,000)

 

 

Decrease in NU Money Pool Borrowings

 

(47,900)

 

 

(14,300)

Capital Contributions from NU Parent

 

20,000 

 

 

23,456 

Retirements of Rate Reduction Bonds

 

(12,697)

 

 

(11,962)

Other Financing Activities

 

(68)

 

 

(51)

Net Cash Flows Used in Financing Activities

 

(65,372)

 

 

(15,502)

Net Increase in Cash

 

789 

 

 

273 

Cash - Beginning of Period

 

2,559 

 

 

1,974 

Cash - End of Period

$

3,348 

 

$

2,247 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.




12






WESTERN MASSACHUSETTS ELECTRIC COMPANY AND SUBSIDIARY 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

(Thousands of Dollars)

 

2011

 

 

2010

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

   Cash

$

354

 

$

1

   Receivables, Net

 

41,287

 

 

37,585

   Accounts Receivable from Affiliated Companies

 

1,009

 

 

505

   Unbilled Revenues

 

15,285

 

 

16,578

   Taxes Receivable

 

5

 

 

7,346

   Materials and Supplies

 

3,717

 

 

3,664

   Regulatory Assets

 

19,934

 

 

19,531

   Marketable Securities

 

31,931

 

 

33,194

   Prepayments and Other Current Assets

 

1,901

 

 

1,968

Total Current Assets

 

115,423

 

 

120,372

 

 

 

 

 

 

Property, Plant and Equipment, Net

 

850,611

 

 

817,146

 

 

 

 

 

 

Deferred Debits and Other Assets:

 

 

 

 

 

   Regulatory Assets

 

195,319

 

 

207,584

   Marketable Securities

 

25,173

 

 

23,860

   Other Long-Term Assets

 

29,924

 

 

30,597

Total Deferred Debits and Other Assets

 

250,416

 

 

262,041

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

1,216,450

 

$

1,199,559

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.  




13






WESTERN MASSACHUSETTS ELECTRIC COMPANY AND SUBSIDIARY 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

(Thousands of Dollars)

 

2011

 

 

2010

 

 

 

 

 

 

LIABILITIES AND CAPITALIZATION

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

   Notes Payable to Banks

$

10,000

 

$

   Notes Payable to Affiliated Companies

 

23,400

 

 

20,400 

   Accounts Payable

 

45,748

 

 

48,344 

   Accounts Payable to Affiliated Companies

 

9,097

 

 

7,848 

   Accrued Interest

 

2,006

 

 

6,787 

   Regulatory Liabilities

 

10,514

 

 

7,959 

   Accumulated Deferred Income Taxes

 

5,324

 

 

5,902 

   Other Current Liabilities

 

12,411

 

 

9,842 

Total Current Liabilities

 

118,500

 

 

107,082 

 

 

 

 

 

 

Rate Reduction Bonds

 

39,155

 

 

43,325 

 

 

 

 

 

 

Deferred Credits and Other Liabilities:

 

 

 

 

 

   Accumulated Deferred Income Taxes

 

223,210

 

 

218,063 

   Regulatory Liabilities

 

17,265

 

 

15,048 

   Other Long-Term Liabilities

 

56,761

 

 

58,169 

Total Deferred Credits and Other Liabilities

 

297,236

 

 

291,280 

 

 

 

 

 

 

Capitalization:

 

 

 

 

 

   Long-Term Debt

 

400,329

 

 

400,288 

 

 

 

 

 

 

   Common Stockholder's Equity:

 

 

 

 

 

     Common Stock

 

10,866

 

 

10,866 

     Capital Surplus, Paid In

 

248,101

 

 

248,044 

     Retained Earnings

 

102,147

 

 

98,757 

     Accumulated Other Comprehensive Income/(Loss)

 

116

 

 

(83)

   Common Stockholder's Equity

 

361,230

 

 

357,584 

Total Capitalization

 

761,559

 

 

757,872 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Capitalization

$

1,216,450

 

$

1,199,559 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 




14






WESTERN MASSACHUSETTS ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

(Thousands of Dollars)

 

2011

 

 

2010

 

 

 

 

 

 

Operating Revenues

$

106,684 

 

$

100,207 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

   Fuel, Purchased and Net Interchange Power

 

40,204 

 

 

43,632 

   Other Operating Expenses

 

26,230 

 

 

23,226 

   Maintenance

 

4,771 

 

 

4,542 

   Depreciation

 

6,338 

 

 

5,953 

   Amortization of Regulatory Liabilities, Net

 

(600)

 

 

(1,570)

   Amortization of Rate Reduction Bonds

 

4,146 

 

 

3,895 

   Taxes Other Than Income Taxes

 

4,543 

 

 

4,084 

      Total Operating Expenses

 

85,632 

 

 

83,762 

Operating Income

 

21,052 

 

 

16,445 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

   Interest on Long-Term Debt

 

4,754 

 

 

3,881 

   Interest on Rate Reduction Bonds

 

684 

 

 

937 

   Other Interest

 

136 

 

 

126 

      Interest Expense

 

5,574 

 

 

4,944 

Other Income, Net

 

739 

 

 

604 

Income Before Income Tax Expense

 

16,217 

 

 

12,105 

Income Tax Expense

 

6,251 

 

 

6,446 

Net Income

$

9,966 

 

$

5,659 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 




15






WESTERN MASSACHUSETTS ELECTRIC COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

(Thousands of Dollars)

 

2011

 

 

2010

 

 

 

 

 

 

Operating Activities:

 

 

 

 

 

   Net Income

$

9,966 

 

$

5,659 

   Adjustments to Reconcile Net Income to Net Cash Flows

 

 

 

 

 

     Provided by Operating Activities:

 

 

 

 

 

      Bad Debt Expense

 

1,337 

 

 

1,567 

      Depreciation

 

6,338 

 

 

5,953 

      Deferred Income Taxes

 

4,507 

 

 

2,935 

      Pension and PBOP Expense, Net of PBOP Contributions

 

1,096 

 

 

565 

      Regulatory Overrecoveries/(Underrecoveries), Net

 

7,620 

 

 

(2,748)

      Amortization of Regulatory Liabilities, Net

 

(600)

 

 

(1,570)

      Amortization of Rate Reduction Bonds

 

4,146 

 

 

3,895 

      Other

 

(1,370)

 

 

(465)

   Changes in Current Assets and Liabilities:

 

 

 

 

 

      Receivables and Unbilled Revenues, Net

 

(2,384)

 

 

(1,768)

      Materials and Supplies

 

(53)

 

 

(1,049)

      Taxes Receivable/Accrued

 

10,019 

 

 

(129)

      Accounts Payable

 

(4,584)

 

 

(75)

      Other Current Assets and Liabilities

 

(4,466)

 

 

(4,019)

Net Cash Flows Provided by Operating Activities

 

31,572 

 

 

8,751 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

Investments in Property, Plant and Equipment

 

(33,037)

 

 

(19,111)

Proceeds from Sales of Marketable Securities

 

32,414 

 

 

11,086 

Purchases of Marketable Securities

 

(32,510)

 

 

(11,175)

Increase in NU Money Pool Lending

 

 

 

(5,700)

Other Investing Activities

 

(333)

 

 

(123)

Net Cash Flows Used in Investing Activities

 

(33,466)

 

 

(25,023)

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

Cash Dividends on Common Stock

 

(6,576)

 

 

(3,721)

Increase in Short-Term Debt

 

10,000 

 

 

Issuance of Long-Term Debt

 

 

 

95,000 

Increase/(Decrease) in NU Money Pool Borrowings

 

3,000 

 

 

(136,100)

Retirements of Rate Reduction Bonds

 

(4,170)

 

 

(3,921)

Capital Contributions from NU Parent

 

 

 

66,143 

Other Financing Activities

 

(7)

 

 

(1,129)

Net Cash Flows Provided by Financing Activities