BERLIN, Conn., Feb. 19 /PRNewswire-FirstCall/ -- Northeast Utilities today reported 2006 earnings of $470.6 million, or $3.06 per share, compared with losses of $253.5 million, or $1.93 per share, in 2005. NU also reported fourth quarter 2006 earnings of $347.0 million, or $2.25 per share, compared with a loss of $13.6 million, or $0.10 per share, in the same quarter of 2005.
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Charles W. Shivery, NU chairman, president, and chief executive officer, attributed the significant improvement to the company's strong execution of its strategic plan to exit its competitive energy businesses and focus exclusively on its regulated businesses. In the fourth quarter of 2006, NU realized a gain of $314.1 million, or $2.03 per share, from the November 1, 2006 sale of its competitive generating facilities. In 2005, NU's competitive businesses recorded losses of $398.2 million, or $3.03 per share, primarily as a result of marking to market various out-of-the-money wholesale energy contracts.
"We are rapidly implementing the strategic plan we announced in November of 2005. We are making significant investments in the energy delivery infrastructure New England needs," Shivery said. "These investments are critical to the region's reliability and to help it deal with some of the highest energy prices in the nation. We are encouraged by the support we continue to receive from our policymakers to make these investments and we are pleased that we have been able to accomplish them on time and on or below budget."
Shivery said NU's regulated capital expenditures totaled $925 million in 2006, compared with $793 million in 2005. In 2007, NU's regulated capital expenditures are expected to total approximately $1.2 billion as NU continues to build the infrastructure needed to meet the increasing demands for energy in New England. In terms of capital projects, Shivery said NU achieved a number of milestones in 2006:
- The Connecticut Light and Power Company's (CL&P) 21-mile Bethel-
Norwalk, 345-kV transmission line was placed in service on October 12,
2006, approximately two months ahead of schedule and $10 million below
its $350 million budget.
- Public Service Company of New Hampshire's (PSNH) Northern Wood Power
Project, the conversion of a 50-mW coal-fired boiler at Schiller
Station in Portsmouth, New Hampshire to a renewable energy unit that
burns wood chips, began commercial operation on December 1, 2006 and
was completed below its $75 million budget.
- Construction of CL&P's share of the 69-mile Middletown-Norwalk 345-kV
transmission line began in mid-2006, about six months ahead of its
planned start date. It is expected to be completed in 2009 at a cost
to CL&P of approximately $1.05 billion. The project is currently about
16 percent complete.
- Construction began in October 2006 of CL&P's 9-mile, 115-kV Glenbrook
underground transmission project between Norwalk and Stamford,
Connecticut. Completion is expected in 2008 at a cost of approximately
$183 million. The project is currently about 20 percent complete.
- Yankee Gas Service Company's 1.2 bcf, $108 million liquefied natural
gas storage facility in Waterbury, Connecticut, which is expected to
improve reliability and lower overall customer costs, is approximately
90 percent complete and expected to be available for the 2007-2008
heating season.
Also:
- Western Massachusetts Electric Company's (WMECO) two-year distribution
rate settlement was approved by Massachusetts regulators in December
2006 and implemented January 1, 2007.
2007 Earnings Guidance
NU today affirmed its 2007 consolidated earnings guidance of between $1.30 per share and $1.55 per share. NU projects earnings from its electric and natural gas distribution and regulated electric generation of between $0.80 per share and $0.90 per share in 2007. NU projects transmission earnings of between $0.50 per share and $0.60 per share in 2007 and parent company earnings of between $0.00 and $0.05 per share. NU also projects approximately breakeven results at its remaining competitive businesses in 2007, excluding the impact of marking to market its decreasing level of wholesale electricity commitments.
2006 Results
Shivery said NU's improved results in 2006 were due primarily to the impact of executing the company's strategic plan, including the sale of its competitive generation and achieving higher transmission earnings on a larger transmission investment base. Additionally, as previously announced, CL&P recorded income of $74 million, or $0.48 per share, in the third quarter of 2006 as a result of a reduction of income tax expense related to a private letter ruling (PLR) CL&P received earlier this year from the Internal Revenue Service. Comparisons with previous year's results also benefited from the absence of charges NU recorded in 2005 as a result of the company's decision to divest its wholesale marketing and energy services businesses.
Excluding the impact of the generation sale and the PLR, NU's regulated businesses and parent company and affiliates earned $54.9 million, or $0.36 per share, in the fourth quarter of 2006, compared with $40.5 million, or $0.29 per share, in the fourth quarter of 2005. For the full year, excluding such items, those businesses earned $178.2 million, or $1.16 per share, in 2006, compared with $144.7 million, or $1.10 per share, in 2005. NU had earlier projected 2006 earnings for those business segments, excluding the PLR, of between $1.09 per share and $1.22 per share.
Regulated Business Results
The transmission segments of NU's three electric companies earned $16.2 million in the fourth quarter of 2006 and $59.8 million in full-year 2006, compared with $10.6 million in the fourth quarter of 2005 and $41.1 million in full-year 2005. Increased full-year earnings were primarily a result of a higher level of investment, particularly in Connecticut.
NU's regulated electric and natural gas distribution and electric generation earnings were $47.1 million in the fourth quarter of 2006 and $197.5 million for the full year of 2006, compared with $38.5 million in the fourth quarter of 2005 and $122.3 million in the full year of 2005.
CL&P's distribution business earned $33.4 million in the fourth quarter of 2006 and $147.6 million for the full year of 2006, compared with $19.1 million in the fourth quarter of 2005 and $60.0 million in the full year of 2005. Fourth quarter 2006 results include recognition of an after-tax $7.7 million deferred gain related to the sale of NU's competitive generation assets. That gain is eliminated in consolidated NU results. Fourth quarter CL&P 2005 results included $8.5 million in after-tax termination and employee benefit curtailment charges. Absent the impact of the aforementioned reduction in income tax expense from the PLR and the deferred gain, CL&P's distribution business would have earned $65.9 million in 2006. Higher distribution rates in 2006 and a lower effective tax rate were partially offset by lower sales, higher storm-related expenses, and higher interest costs, compared with 2005.
PSNH's distribution and generation business earned $5.8 million in the fourth quarter of 2006 and $27.0 million for full-year 2006, compared with $9.9 million in the fourth quarter of 2005 and $33.9 million for full-year 2005. The lower results were due primarily to a higher effective tax rate. PSNH's unitary state corporate income tax is impacted by the profitability of the NU system in its entirety. Therefore, PSNH's state income taxes were higher in 2006 due to the competitive business divestiture gains recorded in 2006 by NU, and PSNH's state income taxes were lower in 2005 due to the significant losses recorded that year by NU's competitive businesses.
WMECO's distribution business earned $2.4 million in the fourth quarter of 2006 and $11.0 million in full-year 2006, compared with $2.5 million in the fourth quarter of 2005 and $11.1 million in full-year 2005.
Yankee Gas earned $5.5 million in the fourth quarter of 2006 and earned $11.9 million for the full-year 2006, compared with earnings of $7.0 million in the fourth quarter of 2005 and $17.3 million for full-year 2005. Yankee Gas earnings were lower due primarily to an 11.2 percent decline in firm sales in 2006, compared with 2005, largely the result of milder weather in 2006.
Shivery said 2006 regulated electric sales declined as a result of lower use per customer. He said the lower use was due to a combination of milder summer and winter weather in 2006, compared with 2005, and customer reaction to higher energy prices.
Overall, retail electric sales were down 4.0 percent in 2006, compared with 2005, with residential sales off 5.6 percent, commercial sales off 2.3 percent, and industrial sales down 4.5 percent. On a weather-adjusted basis, retail electric sales were down 1.6 percent in 2006, compared with 2005. In the fourth quarter of 2006, retail electric sales were down 5.5 percent from the same period of 2005 and 3.1 percent on a weather-adjusted basis.
Competitive Business Results
NU's competitive energy businesses earned $211.3 million, or $1.37 per share, in 2006, compared with a loss of $398.2 million, or $3.03 a share in 2005. In the fourth quarter of 2006, the competitive energy businesses earned $285 million, or $1.85 per share, compared with a loss of $54.1 million, or $0.39 per share, in the fourth quarter of 2005. The improvement in 2006 was largely due to the generation sale and the absences of mark-to-market and other charges recorded in 2005. Shivery said the success of the competitive generation sale helped allow the competitive businesses to make a $25 million pre-tax contribution in the fourth quarter of 2006 to the NU Foundation, which supports charitable organizations in Connecticut, New Hampshire and Massachusetts. Fourth quarter 2006 competitive business results reflect the effect of that contribution.
Parent and Other
NU Parent and other affiliates earned $2.0 million in 2006, compared with a loss of $18.7 million in 2005. The improved results were due primarily to interest earned by NU Parent on cash raised through the sale of 23 million additional shares in December 2005 and the sale of the competitive generation, as well as the absence in 2006 of certain write-offs recorded in 2005.
The following table reconciles 2006 and 2005 fourth-quarter and full year results:
Fourth Quarter Twelve Months
2005 Reported EPS ($0.10) ($1.93)
Competitive business loss in 2005 $0.39 $3.03
Regulated and Parent EPS in 2005 $0.29 $1.10
Higher transmission earnings in 2006,
net of dilution $0.02 $0.08
Higher regulated distribution and
generation earnings in 2006, net of
dilution and including third quarter
$0.48/share tax-related gain $0.03 $0.35
Lower Parent costs in 2006,
net of dilution $0.02 $0.11
Regulated and Parent EPS in 2006 $0.36 $1.64
Competitive business earnings in 2006,
excluding gain from sale of generation ($0.14) ($0.62)
Gain for Sale of Competitive Generation
Business $2.03 $2.04
2006 Reported Basic EPS $2.25 $3.06
2006 Reported Diluted EPS $2.24 $3.05
Financial results for the fourth quarter and full year of 2006 and 2005 for NU's regulated and competitive businesses are noted below:
Three months ended:
(in millions)
December December Increase
31, 2006 31, 2005 (Decrease)
CL&P Distribution $33.4 $19.1 $14.3
PSNH Distribution/Generation $5.8 $9.9 ($4.1)
WMECO Distribution $2.4 $2.5 ($0.1)
Yankee Gas $5.5 $7.0 ($1.5)
Total-Distribution/ Regulated Generation $47.1 $38.5 $8.6
CL&P Transmission $12.9 $7.9 $5.0
PSNH Transmission $1.6 $2.0 ($0.4)
WMECO Transmission $1.7 $0.7 $1.0
Total-Transmission $16.2 $10.6 $5.6
Total-Regulated Businesses $63.3 $49.1 $14.2
NU Parent and Other Affiliates ($8.4) ($8.6) $0.2
Total-Regulated and Parent $54.9 $40.5 $14.4
Total-Competitive Energy, ex. gain ($22.0) ($54.1) $32.1
Gain from sale of Competitive
Generation Business-NU Enterprises $307.0 --- $307.0
Gain from sale of Competitive
Generation Business-Parent/Other $7.1 --- $7.1
Reported Earnings $347.0 ($13.6) $360.6
12 months ended:
(in millions) December December Increase
31, 2006 31, 2005 (Decrease)
CL&P Distribution $147.6 $60.0 $87.6
PSNH Distribution/Generation $27.0 $33.9 ($6.9)
WMECO Distribution $11.0 $11.1 ($0.1)
Yankee Gas $11.9 $17.3 ($5.4)
Total-Distribution/ Regulated Generation $197.5 $122.3 $75.2
CL&P Transmission $46.9 $29.3 $17.6
PSNH Transmission $8.3 $7.8 $0.5
WMECO Transmission $4.6 $4.0 $0.6
Total-Transmission $59.8 $41.1 $18.7
Total-Regulated Businesses $257.3 $163.4 $93.9
NU Parent and Other Affiliates ($5.1) ($18.7) $13.6
Total-Regulated and Parent $252.2 $144.7 $107.5
Total Competitive Energy, ex. gain ($95.7) ($398.2) $302.5
Gain from sale of Competitive
Generation Business-NU Enterprises $307.0 --- $307.0
Gain from sale of Competitive
Generation Business-Parent/Other $7.1 --- $7.1
Reported Earnings $470.6 ($253.5) $724.1
During 2006, NU had approximately 153.8 million average common shares outstanding and 154.1 million average common shares diluted. It operates New England's largest energy delivery system, serving more than 2 million customers in Connecticut, New Hampshire and Massachusetts.
This news release includes statements concerning NU's expectations, plans, objectives, future financial performance and other statements that are not historical facts. These statements are "forward looking statements" within the meaning of the Private Litigation Reform Act of 1995. In some cases, you can identify these forward looking statements by words such as "estimate", "expect", "anticipate", "intend", "plan", "believe", "forecast", "should", "could", and similar expressions. Forward looking statements involve risks and uncertainties that may cause actual results or outcomes to differ materially from those included in the forward looking statements. Factors that may cause actual results to differ materially from those included in the forward looking statements include, but are not limited to, actions by state and federal regulatory bodies, competition and industry restructuring, changes in economic conditions, changes in weather patterns, changes in laws, regulations or regulatory policy, changes in levels and timing of capital expenditures, developments in legal or public policy doctrines, technological developments, changes in accounting standards and financial reporting regulations, fluctuations in the value of our remaining competitive electricity positions, actions of rating agencies, and other presently unknown or unforeseen factors. Other risk factors are detailed from time to time in our reports to the SEC. We undertake no obligation to update the information contained in any forward looking statements to reflect developments or circumstances occurring after the statement is made.
Note: NU will webcast an investor call Tuesday, February 20, 2007, at 4 p.m. Eastern Standard Time. The call can be accessed through NU's website at http://www.nu.com/.
NORTHEAST UTILITIES AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
At December 31,
(Thousands of Dollars) 2006 2005
ASSETS
Current Assets:
Cash and cash equivalents $481,911 $45,782
Special deposits 48,524 103,789
Investments in securitizable assets 375,655 252,801
Receivables, less provision for
uncollectible accounts of $22,369 in 2006
and $24,444 in 2005 361,201 901,516
Unbilled revenues 88,170 175,853
Fuel, materials and supplies 173,882 206,557
Marketable securities - current 67,546 56,012
Derivative assets - current 88,699 403,507
Prepayments and other 45,305 128,042
Assets held for sale 158 101,784
1,731,051 2,375,643
Property, Plant and Equipment:
Electric utility 7,129,526 6,378,838
Gas utility 858,961 825,872
Competitive energy 17,864 908,776
Other 281,525 254,659
8,287,876 8,368,145
Less: Accumulated depreciation:
$2,443,203 for electric and
gas utility and $171,903 for
competitive energy and other
in 2006; $2,304,966 for
electric and gas utility and
$246,356 for competitive energy
and other in 2005 2,615,106 2,551,322
5,672,770 5,816,823
Construction work in progress 569,416 600,407
6,242,186 6,417,230
Deferred Debits and Other Assets:
Regulatory assets 2,449,132 2,483,851
Goodwill 287,591 287,591
Prepaid pension 21,647 298,545
Marketable securities - long-term 50,843 56,527
Derivative assets - long-term 271,755 425,049
Other 249,031 223,439
3,329,999 3,775,002
Total Assets $11,303,236 $12,567,875
The data contained in this report is preliminary and is unaudited. This
report is being submitted for the sole purpose of providing information to
present shareholders about Northeast Utilities and Subsidiaries and is not
a representation, prospectus, or intended for use in connection with any
purchase or sale of securities.
NORTHEAST UTILITIES AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
At December 31,
(Thousands of Dollars) 2006 2005
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes payable to banks $- $32,000
Long-term debt - current portion 4,877 22,673
Accounts payable 569,940 972,368
Accrued taxes 364,659 95,210
Accrued interest 53,782 47,742
Derivative liabilities - current 125,781 402,530
Counterparty deposits 148 28,944
Other 244,586 272,252
Liabilities of assets held for sale 62 101,511
1,363,835 1,975,230
Rate Reduction Bonds 1,177,158 1,350,502
Deferred Credits and Other
Liabilities:
Accumulated deferred income taxes 1,099,433 1,306,340
Accumulated deferred investment tax
credits 32,427 95,444
Deferred contractual obligations 271,528 358,174
Regulatory liabilities 809,324 1,273,501
Derivative liabilities - long-term 148,557 272,995
Accrued postretirement benefits 203,320 16,506
Other 322,840 346,451
2,887,429 3,669,411
Capitalization:
Long-Term Debt 2,960,435 3,027,288
Preferred Stock of Subsidiary -
Non-Redeemable 116,200 116,200
Common Shareholders' Equity:
Common shares, $5 par value -
authorized 225,000,000 shares;
175,420,239 shares issued and
154,233,141 shares outstanding
in 2006 and 174,897,704 shares
issued and 153,225,892 shares
outstanding in 2005 877,101 874,489
Capital surplus, paid in 1,449,586 1,437,561
Deferred contribution plan -
employee stock ownership
plan (34,766) (46,884)
Retained earnings 862,660 504,301
Accumulated other comprehensive
income 4,498 19,987
Treasury stock, 19,684,249 shares
in 2006 and 19,645,511 shares in 2005 (360,900) (360,210)
Common Shareholders' Equity 2,798,179 2,429,244
Total Capitalization 5,874,814 5,572,732
Total Liabilities and Capitalization $11,303,236 $12,567,875
The data contained in this report is preliminary and is unaudited. This
report is being submitted for the sole purpose of providing information to
present shareholders about Northeast Utilities and Subsidiaries and is not
a representation, prospectus, or intended for use in connection with any
purchase or sale of securities.
NORTHEAST UTILITIES AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME/(LOSS)
(Unaudited)
For the Three Months Ended December 31, 2006 2005
(Thousands of Dollars,
except share information)
Operating Revenues $1,483,156 $1,878,224
Operating Expenses:
Operation -
Fuel, purchased and net
interchange power 930,914 1,346,749
Other 302,872 270,113
Restructuring and impairment
charges - 15,682
Maintenance 50,436 41,545
Depreciation 60,875 57,327
Amortization (32,463) 75,928
Amortization of rate reduction
bonds 46,411 43,327
Taxes other than income taxes 57,534 59,506
Total operating expenses 1,416,579 1,910,177
Operating Income/(Loss) 66,577 (31,953)
Interest Expense:
Interest on long-term debt 39,054 34,886
Interest on rate reduction bonds 17,182 20,664
Other interest 4,112 4,577
Interest expense, net 60,348 60,127
Other Income, Net 28,692 22,242
Income/(Loss) from Continuing
Operations Before
Income Tax Expense/(Benefit) 34,921 (69,838)
Income Tax Expense/(Benefit) 3,658 (56,067)
Income/(Loss) from Continuing
Operations Before
Preferred Dividends of Subsidiary 31,263 (13,771)
Preferred Dividends of Subsidiary 1,390 1,390
Income/(Loss) from Continuing
Operations 29,873 (15,161)
Discontinued Operations:
(Loss)/Income from Discontinued
Operations Before Income Taxes (9,921) 3,957
Gain/(Loss) from Sale of
Discontinued Operations 510,736 (1,123)
Income Tax Expense (183,695) (241)
Income from Discontinued Operations 317,120 2,593
Income/(Loss) Before Cumulative
Effect of Accounting Change, Net of
Tax Benefit 346,993 (12,568)
Cumulative effect of accounting
change, net of tax benefit of $689 - (1,005)
Net Income/(Loss) $346,993 $(13,573)
Basic Earnings/(Loss) Per Common
Share:
Income/(Loss) from Continuing
Operations $0.19 $(0.08)
Income/(Loss) from Discontinued
Operations 2.06 (0.01)
Cumulative Effect of Accounting
Change, Net of Tax Benefit - (0.01)
Basic Earnings/(Loss) Per Common
Share $2.25 $(0.10)
Fully Diluted Earnings/(Loss) Per
Common Share:
Income/(Loss) from Continuing
Operations $0.19 $(0.08)
Income/(Loss) from Discontinued
Operations 2.05 (0.01)
Cumulative Effect of Accounting
Change, Net of Tax Benefit - (0.01)
Fully Diluted Earnings/(Loss) Per
Common Share $2.24 $(0.10)
Basic Common Shares Outstanding
(weighted average) 154,115,281 137,799,257
Fully Diluted Common Shares
Outstanding (weighted average) 154,667,384 137,799,257
The data contained in this report is preliminary and is unaudited. This
report is being submitted for the sole purpose of providing information to
present shareholders about Northeast Utilities and Subsidiaries and is not
a representation, prospectus, or intended for use in connection with any
purchase or sale of securities.
NORTHEAST UTILITIES AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME/(LOSS)
(Unaudited)
For the Years Ended December 31, 2006 2005 2004
(Thousands of Dollars,
except share information)
Operating Revenues $6,884,388 $7,397,743 $6,542,038
Operating Expenses:
Operation -
Fuel, purchased and net
interchange power 4,630,798 5,528,600 4,401,175
Other 1,129,557 1,058,620 938,791
Restructuring and impairment
charges 10,300 44,143 -
Maintenance 193,975 178,521 163,626
Depreciation 240,715 225,278 215,063
Amortization 16,292 202,949 138,271
Amortization of rate reduction
bonds 188,247 176,356 164,915
Taxes other than income taxes 250,580 247,555 230,793
Total operating expenses 6,660,464 7,662,022 6,252,634
Operating Income/(Loss) 223,924 (264,279) 289,404
Interest Expense:
Interest on long-term debt 151,686 131,870 107,365
Interest on rate reduction bonds 74,242 87,439 98,899
Other interest 22,217 19,755 8,762
Interest expense, net 248,145 239,064 215,026
Other Income, Net 74,501 54,530 22,722
Income/(Loss) from Continuing
Operations Before
Income Tax (Benefit)/Expense 50,280 (448,813) 97,100
Income Tax (Benefit)/Expense (81,429) (187,796) 21,765
Income/(Loss) from Continuing
Operations Before
Preferred Dividends of Subsidiary 131,709 (261,017) 75,335
Preferred Dividends of Subsidiary 5,559 5,559 5,559
Income/(Loss) from Continuing
Operations 126,150 (266,576) 69,776
Discontinued Operations:
Income from Discontinued
Operations Before Income Taxes 44,871 24,327 76,803
Gain/(Loss) from Sale of
Discontinued Operations 502,653 (1,123) -
Income Tax Expense (203,096) (9,111) (29,991)
Income from Discontinued Operations 344,428 14,093 46,812
Income/(Loss) Before Cumulative
Effect of Accounting Change, Net
of Tax Benefit 470,578 (252,483) 116,588
Cumulative effect of accounting
change, net of tax benefit of $689 - (1,005) -
Net Income/(Loss) $470,578 $(253,488) $116,588
Basic Earnings/(Loss) Per Common
Share:
Income/(Loss) from Continuing
Operations $0.82 $(2.03) $0.54
Income from Discontinued Operations 2.24 0.11 0.37
Cumulative Effect of Accounting
Change, Net of Tax Benefit - (0.01) -
Basic Earnings/(Loss) Per Common
Share $3.06 $(1.93) $0.91
Fully Diluted Earnings/(Loss) Per
Common Share:
Income/(Loss) from Continuing
Operations $0.82 $(2.03) $0.54
Income from Discontinued Operations 2.23 0.11 0.37
Cumulative Effect of Accounting
Change, Net of Tax Benefit - (0.01) -
Fully Diluted Earnings/(Loss) Per
Common Share $3.05 $(1.93) $0.91
Basic Common Shares Outstanding
(weighted average) 153,767,527 131,638,953 128,245,860
Fully Diluted Common Shares
Outstanding (weighted average) 154,146,669 131,638,953 128,396,076
The data contained in this report is preliminary and is unaudited. This
report is being submitted for the sole purpose of providing information to
present shareholders about Northeast Utilities and Subsidiaries and is not
a representation, prospectus, or intended for use in connection with any
purchase or sale of securities.
NORTHEAST UTILITIES AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Years Ended December 31, 2006 2005 2004
(Thousands of Dollars)
Operating Activities:
Net income/(loss) $470,578 $(253,488) $116,588
Adjustments to reconcile to net
cash flows provided by
operating activities:
Pre-tax (gain)/loss on sale of
discontinued operations (502,653) 1,123 -
Restructuring and impairment
charges (2,282) 67,181 -
Bad debt expense 29,366 27,528 19,062
Depreciation 243,822 237,463 226,906
Deferred income taxes (204,212) (202,789) 111,710
Amortization 16,292 202,949 138,271
Amortization of rate reduction
bonds 188,247 176,356 164,915
Amortization/(deferral) of
recoverable energy costs 15,609 39,914 (22,751)
Pension expense 38,677 42,662 10,636
Wholesale contract buyout payments - (186,531) -
Regulatory refunds (96,560) (65,236) (150,119)
Derivative assets and liabilities (98,685) 443,351 85,592
Deferred contractual obligations (90,671) (89,464) (56,161)
Other non-cash adjustments 22,675 45,112 (30,053)
Other sources of cash 10,655 5,528 24,545
Other uses of cash (10,134) - (10,189)
Changes in current assets and
liabilities:
Receivables and unbilled
revenues, net 605,366 (208,519) (103,983)
Fuel, materials and supplies 16,718 (17,848) (31,104)
Investments in securitizable
assets (158,651) (113,410) 27,074
Other current assets 58,350 46,462 (9,387)
Accounts payable (399,386) 131,043 124,437
Counterparty deposits and margin
special deposits 26,469 (86,229) (18,107)
Accrued taxes/(taxes receivable) 271,477 156,630 (112,300)
Other current liabilities (43,993) 41,416 (44,935)
Net cash flows provided by operating
activities 407,074 441,204 460,647
Investing Activities:
Investments in property and plant:
Electric, gas and other utility
plant (847,404) (752,124) (653,948)
Competitive energy assets (24,777) (23,231) (17,527)
Cash flows used for investments in
property and plant (872,181) (775,355) (671,475)
Net proceeds from sales of
competitive businesses 1,053,099 31,456 -
Cash payments for sales of
competitive businesses (32,359) - -
Proceeds from sales of investment
securities 193,459 137,099 106,217
Purchases of investment securities (193,917) (142,260) (171,511)
Restricted cash - LMP costs - - 93,630
Rate reduction bond escrow (47,071) (6,421) 3,874
Other investing activities 16,034 55,936 3,847
Net cash flows provided by/(used in)
investing activities 117,064 (699,545) (635,418)
Financing Activities:
Issuance of common shares 9,494 450,827 10,937
Issuance of long-term debt 250,000 350,355 512,762
Retirement of rate reduction bonds (173,344) (195,988) (183,470)
(Decrease)/increase in short-term
debt (32,000) (148,000) 75,000
Reacquisitions and retirements of
long-term debt (28,843) (98,056) (155,532)
Cash dividends on common shares (112,745) (87,554) (80,177)
Other financing activities (571) (14,450) (1,132)
Net cash flows (used in)/provided by
financing activities (88,009) 257,134 178,388
Net increase/(decrease) in cash and
cash equivalents 436,129 (1,207) 3,617
Cash and cash equivalents - beginning
of year 45,782 46,989 43,372
Cash and cash equivalents - end of
year $481,911 $45,782 $46,989
The data contained in this report is preliminary and is unaudited. This
report is being submitted for the sole purpose of providing information to
present shareholders about Northeast Utilities and Subsidiaries and is not
a representation, prospectus, or intended for use in connection with any
purchase or sale of securities.
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