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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q/A
Amendment No. 1
[X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
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| For the Quarterly Period Ended June 30, 2012 |
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[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
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| For the transition period from ____________ to ____________ |
Commission | Registrant; State of Incorporation; | I.R.S. Employer |
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1-5324 | NORTHEAST UTILITIES | 04-2147929 |
0-00404 | THE CONNECTICUT LIGHT AND POWER COMPANY | 06-0303850 |
1-02301 | NSTAR ELECTRIC COMPANY | 04-1278810 |
1-6392 | PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE | 02-0181050 |
0-7624 | WESTERN MASSACHUSETTS ELECTRIC COMPANY | 04-1961130 |
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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 |
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| ü |
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Indicate by check mark whether the registrants have 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 during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
| Yes | No |
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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 |
| Non-accelerated |
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Northeast Utilities | ü |
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The Connecticut Light and Power Company |
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NSTAR Electric Company |
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Public Service Company of New Hampshire |
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Western Massachusetts Electric Company |
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Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act):
| Yes | No |
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Northeast Utilities |
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The Connecticut Light and Power Company |
| ü |
NSTAR Electric Company |
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Public Service Company of New Hampshire |
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Western Massachusetts Electric Company |
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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 July 31, 2012 |
Northeast Utilities | 313,804,466 shares |
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The Connecticut Light and Power Company | 6,035,205 shares |
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NSTAR Electric Company Common Stock, $1.00 par value | 100 shares |
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Public Service Company of New Hampshire | 301 shares |
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Western Massachusetts Electric Company | 434,653 shares |
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Northeast Utilities, directly or indirectly, holds all of the 6,035,205 shares, 100 shares, 301 shares, and 434,653 shares of the outstanding common stock of The Connecticut Light and Power Company, NSTAR Electric Company, Public Service Company of New Hampshire and Western Massachusetts Electric Company, respectively.
FORM 10-Q/A EXPLANATORY NOTE
This Amendment No. 1 on Form 10−Q/A (this Amendment) amends the Quarterly Report on Form 10-Q of Northeast Utilities (NU), The Connecticut Light and Power Company (CL&P), NSTAR Electric Company (NSTAR Electric), Public Service Company of New Hampshire (PSNH), and Western Massachusetts Electric Company (WMECO) for the quarterly period ended June 30, 2012, originally filed with the Securities and Exchange Commission on August 7, 2012 (the Form 10-Q). The sole purpose of this Amendment is to furnish the eXtensible Business Reporting Language (XBRL) information in Exhibit 101 in accordance with Rule 405 of Regulation S-T. Exhibit 101 provides the consolidated financial statements and related notes from the Form 10-Q formatted in XBRL, which did not properly merge in the original XBRL transmission.
No other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred after the original filing date and does not modify or update in any way disclosures made in the original Form 10-Q.
Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
1
ITEM 6.
EXHIBITS
Exhibit No.
Description
Listing of Exhibits (NU, CL&P, NSTAR Electric, PSNH and WMECO)
*10.1
Northeast Utilities System's Third and Restated Tax Allocation Agreement dated as of April 10, 2012
Listing of Exhibits (NU)
*12
Ratio of Earnings to Fixed Charges
*31
Certification of Thomas J. May, President and Chief Executive Officer of Northeast Utilities, required by Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated August 7, 2012
*31.1
Certification of James J. Judge, Executive Vice President and Chief Financial Officer of Northeast Utilities, required by Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated August 7, 2012
*32
Certification of Thomas J. May, President and Chief Executive Officer of Northeast Utilities and James J. Judge, Executive Vice President and Chief Financial Officer of Northeast Utilities, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated August 7, 2012
**101.INS
XBRL Instance Document
**101.SCH
XBRL Taxonomy Extension Schema
**101.CAL
XBRL Taxonomy Extension Calculation
**101.DEF
XBRL Taxonomy Extension Definition
**101.LAB
XBRL Taxonomy Extension Labels
**101.PRE
XBRL Taxonomy Extension Presentation
Listing of Exhibits (CL&P)
*12
Ratio of Earnings to Fixed Charges
*31
Certification of Leon J. Olivier, Chief Executive Officer of The Connecticut Light and Power Company, required by Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated August 7, 2012
*31.1
Certification of James J. Judge, Executive Vice President and Chief Financial Officer of The Connecticut Light and Power Company, required by Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated August 7, 2012
*32
Certification of Leon J. Olivier, Chief Executive Officer of The Connecticut Light and Power Company and James J. Judge, Executive Vice President and Chief Financial Officer of The Connecticut Light and Power Company, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated August 7, 2012
Listing of Exhibits (NSTAR Electric)
*12
Ratio of Earnings to Fixed Charges
*31
Certification of Leon J. Olivier, Chief Executive Officer of NSTAR Electric Company, required by Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated August 7, 2012
*31.1
Certification of James J. Judge, Executive Vice President and Chief Financial Officer of NSTAR Electric Company, required by Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated August 7, 2012
*32
Certification of Leon J. Olivier, Chief Executive Officer of NSTAR Electric Company and James J. Judge, Executive Vice President and Chief Financial Officer of NSTAR Electric Company, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated August 7, 2012
2
Listing of Exhibits (PSNH)
*12
Ratio of Earnings to Fixed Charges
*31
Certification of Leon J. Olivier, Chief Executive Officer of Public Service Company of New Hampshire, required by Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated August 7, 2012
*31.1
Certification of James J. Judge, Executive Vice President and Chief Financial Officer of Public Service Company of New Hampshire, required by Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated August 7, 2012
*32
Certification of Leon J. Olivier, Chief Executive Officer of Public Service Company of New Hampshire and James J. Judge, Executive Vice President and Chief Financial Officer of Public Service Company of New Hampshire, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated August 7, 2012
Listing of Exhibits (WMECO)
*12
Ratio of Earnings to Fixed Charges
*31
Certification of Leon J. Olivier, Chief Executive Officer of Western Massachusetts Electric Company, required by Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated August 7, 2012
*31.1
Certification of James J. Judge, Executive Vice President and Chief Financial Officer of Western Massachusetts Electric Company, required by Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated August 7, 2012
*32
Certification of Leon J. Olivier, Chief Executive Officer of Western Massachusetts Electric Company and James J. Judge, Executive Vice President and Chief Financial Officer of Western Massachusetts Electric Company, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated August 7, 2012
* Previously filed with the Quarterly Report on Form 10-Q of Northeast Utilities, The Connecticut Light and Power Company, NSTAR Electric Company, Public Service Company of New Hampshire, and Western Massachusetts Electric Company for the quarterly period ended June 30, 2012, originally filed with the Securities and Exchange Commission on August 7, 2012.
** Filed herewith.
3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| NORTHEAST UTILITIES |
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Date: August 8, 2012 |
| By | /s/ Jay S. Buth |
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| Jay S. Buth |
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| Vice President, Controller and |
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| Chief Accounting Officer |
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| (Principal Accounting Officer) |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| THE CONNECTICUT LIGHT AND POWER COMPANY |
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Date: August 8, 2012 |
| By | /s/ Jay S. Buth |
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| Jay S. Buth |
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| Vice President, Controller and |
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| Chief Accounting Officer |
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| (Principal Accounting Officer) |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| NSTAR ELECTRIC COMPANY |
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Date: August 8, 2012 |
| By | /s/ Jay S. Buth |
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| Jay S. Buth |
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| Vice President, Controller and |
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| Chief Accounting Officer |
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| (Principal Accounting Officer) |
4
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE |
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Date: August 8, 2012 |
| By | /s/ Jay S. Buth |
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| Jay S. Buth |
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| Vice President, Controller and |
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| Chief Accounting Officer |
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| (Principal Accounting Officer) |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| WESTERN MASSACHUSETTS ELECTRIC COMPANY |
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Date: August 8, 2012 |
| By | /s/ Jay S. Buth |
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| Jay S. Buth |
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| Vice President, Controller and |
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| Chief Accounting Officer |
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Notes To Consolidated Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value By Balance Sheet Grouping Text Block |
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Other Taxes (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2012
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Jun. 30, 2011
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Jun. 30, 2012
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Jun. 30, 2011
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Excise And Sales Taxes | $ 30.5 | $ 32.0 | $ 65.5 | $ 70.7 |
The Connecticut Light And Power Company [Member]
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Excise And Sales Taxes | $ 27.7 | $ 28.8 | $ 57.1 | $ 60.2 |
SEGMENT INFORMATION (Details) (USD $)
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3 Months Ended | 6 Months Ended | |||
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Jun. 30, 2012
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Jun. 30, 2011
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Jun. 30, 2012
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Dec. 31, 2011
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Segment Reporting Information [Line Items] | |||||
Operating Revenues | $ 1,628,684,000 | $ 1,047,481,000 | $ 2,728,307,000 | $ 2,282,732,000 | |
Depreciation And Amortization | (210,800,000) | (107,700,000) | (315,400,000) | (232,400,000) | |
Operating Expenses | (1,258,400,000) | (761,700,000) | (2,039,000,000) | (1,644,800,000) | |
Operating Income | 159,515,000 | 178,134,000 | 373,908,000 | 405,491,000 | |
Total Interest Expense | (89,047,000) | (62,234,000) | (155,495,000) | (120,783,000) | |
Other Income/(Loss), Net | 1,806,000 | 7,334,000 | 10,580,000 | 17,647,000 | |
Income Tax Expense | (26,055,000) | (44,515,000) | (82,019,000) | (108,052,000) | |
Net Income | 46,219,000 | 78,719,000 | 146,974,000 | 194,303,000 | |
Net Income Attributable to Noncontrolling Interests | (1,880,000) | (1,441,000) | (3,373,000) | (2,870,000) | |
Net Income Attributable to Controlling Interests | 44,339,000 | 77,278,000 | 143,601,000 | 191,433,000 | |
Total Assets | 27,506,300,000 | 27,506,300,000 | 15,647,066,000 | ||
Investments in Property, Plant and Equipment | 690,376,000 | 468,526,000 | |||
The Connecticut Light And Power Company [Member]
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Segment Reporting Information [Line Items] | |||||
Operating Revenues | 562,141,000 | 608,013,000 | 1,154,106,000 | 1,281,695,000 | |
Operating Income | 40,381,000 | 114,799,000 | 152,245,000 | 240,782,000 | |
Total Interest Expense | (33,771,000) | (34,298,000) | (67,278,000) | (64,050,000) | |
Other Income/(Loss), Net | 447,000 | 2,058,000 | 5,747,000 | 6,663,000 | |
Income Tax Expense | (124,000) | (29,924,000) | (29,796,000) | (66,423,000) | |
Net Income | 6,933,000 | 52,635,000 | 60,918,000 | 116,972,000 | |
Total Assets | 8,835,371,000 | 8,835,371,000 | 8,791,396,000 | ||
Investments in Property, Plant and Equipment | 220,712,000 | 201,966,000 | |||
Public Service Company Of New Hampshire [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 255,105,000 | 240,191,000 | 498,102,000 | 509,661,000 | |
Operating Income | 47,046,000 | 37,939,000 | 92,432,000 | 84,874,000 | |
Total Interest Expense | (12,785,000) | (10,401,000) | (25,597,000) | (20,857,000) | |
Other Income/(Loss), Net | 549,000 | 4,361,000 | 2,590,000 | 8,820,000 | |
Income Tax Expense | (13,578,000) | (10,234,000) | (26,931,000) | (23,708,000) | |
Net Income | 21,232,000 | 21,665,000 | 42,494,000 | 49,129,000 | |
Total Assets | 3,036,797,000 | 3,036,797,000 | 3,116,541,000 | ||
Investments in Property, Plant and Equipment | 120,792,000 | 111,459,000 | |||
Western Massachusetts Electric Company [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 106,836,000 | 98,390,000 | 220,861,000 | 205,074,000 | |
Operating Income | 25,056,000 | 18,477,000 | 53,716,000 | 39,529,000 | |
Total Interest Expense | (6,869,000) | (5,460,000) | (13,264,000) | (11,034,000) | |
Other Income/(Loss), Net | 188,000 | 242,000 | 1,280,000 | 981,000 | |
Income Tax Expense | (7,237,000) | (5,088,000) | (16,408,000) | (11,339,000) | |
Net Income | 11,138,000 | 8,171,000 | 25,324,000 | 18,137,000 | |
Total Assets | 1,633,513,000 | 1,633,513,000 | 1,502,893,000 | ||
Investments in Property, Plant and Equipment | 152,687,000 | 76,898,000 | |||
Electric Distribution Member
|
|||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 1,229,900,000 | 794,400,000 | 2,016,000,000 | 1,686,000,000 | |
Depreciation And Amortization | (153,300,000) | (76,500,000) | (225,400,000) | (167,500,000) | |
Operating Expenses | (1,004,800,000) | (633,200,000) | (1,627,000,000) | (1,326,300,000) | |
Operating Income | 71,800,000 | 84,700,000 | 163,600,000 | 192,200,000 | |
Total Interest Expense | (44,800,000) | (31,000,000) | (77,900,000) | (60,600,000) | |
Interest Income | 1,000,000 | 600,000 | 2,100,000 | 1,900,000 | |
Other Income/(Loss), Net | (200,000) | 2,800,000 | 4,200,000 | 6,600,000 | |
Income Tax Expense | (6,900,000) | (17,200,000) | (28,300,000) | (43,600,000) | |
Net Income | 20,900,000 | 39,900,000 | 63,700,000 | 96,500,000 | |
Net Income Attributable to Noncontrolling Interests | (1,200,000) | (800,000) | (2,000,000) | (1,700,000) | |
Net Income Attributable to Controlling Interests | 19,700,000 | 39,100,000 | 61,700,000 | 94,800,000 | |
Total Assets | 15,161,300,000 | 15,161,300,000 | 9,653,100,000 | ||
Investments in Property, Plant and Equipment | 305,700,000 | 251,100,000 | |||
Electric Distribution Member | The Connecticut Light And Power Company [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 442,200,000 | 489,900,000 | 916,900,000 | 1,039,800,000 | |
Net Income | (27,200,000) | 19,800,000 | (5,500,000) | 49,200,000 | |
Total Assets | 6,137,500,000 | 6,137,500,000 | 6,161,000,000 | ||
Electric Distribution Member | Public Service Company Of New Hampshire [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 229,400,000 | 219,100,000 | 448,900,000 | 467,000,000 | |
Net Income | 14,700,000 | 16,000,000 | 29,900,000 | 37,500,000 | |
Total Assets | 2,451,500,000 | 2,451,500,000 | 2,551,300,000 | ||
Electric Distribution Member | Western Massachusetts Electric Company [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 81,600,000 | 85,400,000 | 173,600,000 | 179,300,000 | |
Net Income | 1,400,000 | 4,000,000 | 7,500,000 | 9,700,000 | |
Total Assets | 943,300,000 | 943,300,000 | 942,600,000 | ||
Natural Gas Distribution [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 133,500,000 | 78,400,000 | 272,500,000 | 258,600,000 | |
Depreciation And Amortization | (12,400,000) | (6,300,000) | (20,100,000) | (13,100,000) | |
Operating Expenses | (115,800,000) | (65,700,000) | (218,000,000) | (199,200,000) | |
Operating Income | 5,300,000 | 6,400,000 | 34,400,000 | 46,300,000 | |
Total Interest Expense | (8,800,000) | (5,200,000) | (14,300,000) | (10,400,000) | |
Interest Income | 0 | 0 | 0 | 0 | |
Other Income/(Loss), Net | 100,000 | 400,000 | 100,000 | 800,000 | |
Income Tax Expense | 1,300,000 | (400,000) | (7,600,000) | (13,000,000) | |
Net Income | (2,100,000) | 1,200,000 | 12,600,000 | 23,700,000 | |
Net Income Attributable to Noncontrolling Interests | 0 | 0 | 0 | 0 | |
Net Income Attributable to Controlling Interests | (2,100,000) | 1,200,000 | 12,600,000 | 23,700,000 | |
Total Assets | 2,432,700,000 | 2,432,700,000 | 1,511,300,000 | ||
Investments in Property, Plant and Equipment | 59,700,000 | 45,400,000 | |||
Transmission [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 228,700,000 | 152,100,000 | 391,600,000 | 310,300,000 | |
Depreciation And Amortization | (28,600,000) | (21,400,000) | (49,800,000) | (44,800,000) | |
Operating Expenses | (65,500,000) | (44,200,000) | (113,200,000) | (92,500,000) | |
Operating Income | 134,600,000 | 86,500,000 | 228,600,000 | 173,000,000 | |
Total Interest Expense | (26,200,000) | (19,100,000) | (45,800,000) | (35,400,000) | |
Interest Income | 100,000 | 100,000 | 300,000 | 300,000 | |
Other Income/(Loss), Net | 700,000 | 3,300,000 | 3,900,000 | 8,100,000 | |
Income Tax Expense | (44,800,000) | (28,000,000) | (75,600,000) | (57,900,000) | |
Net Income | 64,400,000 | 42,800,000 | 111,400,000 | 88,100,000 | |
Net Income Attributable to Noncontrolling Interests | (700,000) | (600,000) | (1,400,000) | (1,200,000) | |
Net Income Attributable to Controlling Interests | 63,700,000 | 42,200,000 | 110,000,000 | 86,900,000 | |
Total Assets | 5,327,700,000 | 5,327,700,000 | 3,792,900,000 | ||
Investments in Property, Plant and Equipment | 297,200,000 | 146,000,000 | |||
Transmission [Member] | The Connecticut Light And Power Company [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 119,900,000 | 118,100,000 | 237,200,000 | 241,900,000 | |
Net Income | 34,100,000 | 32,800,000 | 66,400,000 | 67,800,000 | |
Total Assets | 2,697,900,000 | 2,697,900,000 | 2,630,400,000 | ||
Transmission [Member] | Public Service Company Of New Hampshire [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 25,700,000 | 21,100,000 | 49,200,000 | 42,700,000 | |
Net Income | 6,500,000 | 5,700,000 | 12,600,000 | 11,600,000 | |
Total Assets | 585,300,000 | 585,300,000 | 565,200,000 | ||
Transmission [Member] | Western Massachusetts Electric Company [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 25,200,000 | 13,000,000 | 47,300,000 | 25,800,000 | |
Net Income | 9,700,000 | 4,200,000 | 17,800,000 | 8,400,000 | |
Total Assets | 690,200,000 | 690,200,000 | 560,300,000 | ||
Other Segment [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 230,200,000 | 130,800,000 | 363,400,000 | 261,200,000 | |
Depreciation And Amortization | (17,700,000) | (3,900,000) | (21,600,000) | (8,300,000) | |
Operating Expenses | (263,000,000) | (126,800,000) | (397,800,000) | (261,700,000) | |
Operating Income | (50,500,000) | 100,000 | (56,000,000) | (8,800,000) | |
Total Interest Expense | (11,100,000) | (8,500,000) | (20,400,000) | (17,100,000) | |
Interest Income | 1,400,000 | 1,500,000 | 2,600,000 | 2,700,000 | |
Other Income/(Loss), Net | 117,900,000 | 85,400,000 | 240,500,000 | 234,900,000 | |
Income Tax Expense | 25,000,000 | 2,000,000 | 31,000,000 | 7,800,000 | |
Net Income | 82,700,000 | 80,500,000 | 197,700,000 | 219,500,000 | |
Net Income Attributable to Noncontrolling Interests | 0 | 0 | 0 | 0 | |
Net Income Attributable to Controlling Interests | 82,700,000 | 80,500,000 | 197,700,000 | 219,500,000 | |
Total Assets | 20,614,100,000 | 20,614,100,000 | 6,618,000,000 | ||
Investments in Property, Plant and Equipment | 27,800,000 | 26,000,000 | |||
Eliminations Segment [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | (193,600,000) | (108,200,000) | (315,200,000) | (233,400,000) | |
Depreciation And Amortization | 1,200,000 | 400,000 | 1,500,000 | 1,300,000 | |
Operating Expenses | 190,700,000 | 108,200,000 | 317,000,000 | 234,900,000 | |
Operating Income | (1,700,000) | 400,000 | 3,300,000 | 2,800,000 | |
Total Interest Expense | 1,900,000 | 1,600,000 | 2,900,000 | 2,700,000 | |
Interest Income | (1,400,000) | (1,500,000) | (2,700,000) | (2,800,000) | |
Other Income/(Loss), Net | (117,800,000) | (85,300,000) | (240,400,000) | (234,800,000) | |
Income Tax Expense | (700,000) | (900,000) | (1,500,000) | (1,400,000) | |
Net Income | (119,700,000) | (85,700,000) | (238,400,000) | (233,500,000) | |
Net Income Attributable to Noncontrolling Interests | 0 | 0 | 0 | 0 | |
Net Income Attributable to Controlling Interests | (119,700,000) | (85,700,000) | (238,400,000) | (233,500,000) | |
Total Assets | (16,029,500,000) | (16,029,500,000) | (5,928,200,000) | ||
Investments in Property, Plant and Equipment | 0 | 0 | |||
Total [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Interest Income | 1,100,000 | 700,000 | 2,300,000 | 2,100,000 | |
Other Income/(Loss), Net | $ 700,000 | $ 6,600,000 | $ 8,300,000 | $ 15,600,000 |
Provision for Uncollectible Accounts (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Accounts Notes And Loans Receivable Line Items | ||
Allowance For Doubtful Accounts Receivable Current | $ 93.1 | $ 34.9 |
The Connecticut Light And Power Company [Member]
|
||
Accounts Notes And Loans Receivable Line Items | ||
Allowance For Doubtful Accounts Receivable Current | 11.8 | 14.8 |
Public Service Company Of New Hampshire [Member]
|
||
Accounts Notes And Loans Receivable Line Items | ||
Allowance For Doubtful Accounts Receivable Current | 7.9 | 7.2 |
Western Massachusetts Electric Company [Member]
|
||
Accounts Notes And Loans Receivable Line Items | ||
Allowance For Doubtful Accounts Receivable Current | 3.7 | 4.6 |
NSTAR Electric Company [Member]
|
||
Accounts Notes And Loans Receivable Line Items | ||
Allowance For Doubtful Accounts Receivable Current | $ 44.7 | $ 27.1 |
MARKETABLE SECURITIES (Tables)
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Jun. 30, 2012
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Notes To Consolidated Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Available For Sale Securities Reconciliation [Table TextBlock] |
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Investments Classified by Contractual Maturity Date [Table Text Block] |
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Fair Value Heirarchy [Table Text Block] |
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SUBSEQUENT EVENTS (Details)
|
6 Months Ended |
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Jun. 30, 2012
|
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Subsequent Event [Line Items] | |
Subsequent Event, Description | On July 25, 2012, NU, NSTAR LLC, NSTAR Gas, CL&P, PSNH, WMECO, and Yankee Gas jointly entered into a five-year $1.15 billion revolving credit facility. The new facility replaced (1) the NSTAR LLC revolving credit facility of $175 million that served to backstop a commercial paper program utilized by NSTAR LLC and was scheduled to expire on December 31, 2012, (2) the NSTAR Gas revolving credit facility of $75 million that expired on June 8, 2012, and (3) the CL&P, PSNH, WMECO, and Yankee Gas joint three-year $400 million and NU parent three-year $500 million unsecured revolving credit facilities that were scheduled to expire on September 24, 2013. The new facility expires on July 25, 2017. Management expects the new facility to be used primarily to backstop the $1.15 billion commercial paper program at NU, which commenced July 25, 2012. On July 25, 2012, NSTAR Electric entered into a five-year $450 million revolving credit facility. This new facility serves to backstop NSTAR Electric’s existing $450 million commercial paper program. This new facility replaced a prior $450 million NSTAR Electric revolving credit facility that was scheduled to expire on December 31, 2012. |
Presentation (Tables)
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Notes To Consolidated Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ScheduleOfReclassificationAdjustments |
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EARNINGS PER SHARE (Tables)
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Jun. 30, 2012
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Notes To Consolidated Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Earnings Per Share Basic And Diluted [Table Text Block] |
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Long-Term Contractual Arrangements (Tables)
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Jun. 30, 2012
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Notes To Consolidated Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Table Text Block] |
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DERIVATIVE INSTURMENTS (Details) (USD $)
|
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
Dec. 31, 2011
|
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Derivative Instrument Detail Abstract | |||||
Derivative Liabilities - Current | $ (113,188,000) | $ (113,188,000) | $ (107,558,000) | ||
Derivative Liabilities, Noncurrent | (946,621,000) | (946,621,000) | (959,876,000) | ||
Derivative Assets Noncurrent | 93,616,000 | 93,616,000 | 98,357,000 | ||
Current Derivative Assets Consolidated | 12,800,000 | 12,800,000 | 11,000,000 | ||
Other Derivatives Not Designated As Hedging Instruments At Fair Value Net Total Abstract | |||||
Description of Derivative Activity Volume | NU also has NYMEX future contracts in order to reduce variability associated with the purchase price of approximately 6.2 million MMBtu of natural gas. | ||||
Effect Of Fair Value Hedges On Results Of Operations [Abstract] | |||||
Interest Realized In Earnings On Fair Value Hedge | 2,700,000 | 2,500,000 | 5,400,000 | ||
Cash Flow Hedges Derivative Instruments At Fair Value Net [Abstract] | |||||
Cash Flow Hedge Gain Loss Reclassified To Interest Expense Net | 700,000 | 100,000 | 1,600,000 | 200,000 | |
Description Of Cash Flow Hedge Activity | In 2011, PSNH and WMECO settled interest rate swaps associated with $280 million and $50 million, respectively, of long-term debt issuances and as a result PSNH and WMECO recorded pre-tax reductions of $18.2 million and $6.9 million, respectively, to AOCI that are being amortized over the remaining lives of the associated debt. | ||||
Derivative Credit Risk Related Contingent Features Abstract | |||||
Derivative Net Liability Position Aggregate Fair Value | (21,100,000) | (21,100,000) | (23,500,000) | ||
Collateral Already Posted Aggregate Fair Value | 4,300,000 | 4,300,000 | 4,100,000 | ||
Additional Collateral Aggregate Fair Value | 17,300,000 | 17,300,000 | 19,900,000 | ||
Minimum [Member]
|
|||||
Fairvalueinputsquantitativeinformationabstract [Abstract] | |||||
FairValueInputsDiscountForLackOfMarketability | 10.00% | ||||
Fair Value inputs, Capacity Prices | 1.4 | 1.4 | |||
Fair Value Inpts, Energy Prices | 41 | 41 | |||
Fair Value Inputs, Renewable Energy Credit Prices | 25 | 25 | |||
Fair Value Inputs, Forward Reserve | 0.5 | 0.5 | |||
Maximum [Member]
|
|||||
Fairvalueinputsquantitativeinformationabstract [Abstract] | |||||
FairValueInputsDiscountForLackOfMarketability | 32.00% | ||||
Fair Value inputs, Capacity Prices | 10.18 | 10.18 | |||
Fair Value Inpts, Energy Prices | 78 | 78 | |||
Fair Value Inputs, Renewable Energy Credit Prices | 84 | 84 | |||
Fair Value Inputs, Forward Reserve | 0.5 | 0.5 | |||
The Connecticut Light And Power Company [Member]
|
|||||
Derivative Instrument Detail Abstract | |||||
Derivative Liabilities - Current | (97,704,000) | (97,704,000) | (95,881,000) | ||
Derivative Liabilities, Noncurrent | (910,115,000) | (910,115,000) | (935,849,000) | ||
Derivative Assets Noncurrent | 91,146,000 | 91,146,000 | 93,755,000 | ||
The Connecticut Light And Power Company [Member] | Minimum [Member]
|
|||||
Fairvalueinputsquantitativeinformationabstract [Abstract] | |||||
Fair Value inputs, Capacity Prices | 1.4 | 1.4 | |||
Fair Value Inpts, Energy Prices | 47 | 47 | |||
Fair Value Inputs, Forward Reserve | 0.5 | 0.5 | |||
The Connecticut Light And Power Company [Member] | Maximum [Member]
|
|||||
Fairvalueinputsquantitativeinformationabstract [Abstract] | |||||
Fair Value inputs, Capacity Prices | 9.51 | 9.51 | |||
Fair Value Inpts, Energy Prices | 52 | 52 | |||
Fair Value Inputs, Forward Reserve | 0.5 | 0.5 | |||
Western Massachusetts Electric Company [Member] | Minimum [Member]
|
|||||
Fairvalueinputsquantitativeinformationabstract [Abstract] | |||||
Fair Value inputs, Capacity Prices | 1.4 | 1.4 | |||
Fair Value Inpts, Energy Prices | 41 | 41 | |||
Fair Value Inputs, Renewable Energy Credit Prices | 25 | 25 | |||
Western Massachusetts Electric Company [Member] | Maximum [Member]
|
|||||
Fairvalueinputsquantitativeinformationabstract [Abstract] | |||||
Fair Value inputs, Capacity Prices | 10.18 | 10.18 | |||
Fair Value Inpts, Energy Prices | 78 | 78 | |||
Fair Value Inputs, Renewable Energy Credit Prices | 84 | 84 | |||
NSTAR Electric Company [Member] | Minimum [Member]
|
|||||
Fairvalueinputsquantitativeinformationabstract [Abstract] | |||||
Fair Value inputs, Capacity Prices | 1.4 | 1.4 | |||
Fair Value Inputs, Renewable Energy Credit Prices | 25 | 25 | |||
NSTAR Electric Company [Member] | Maximum [Member]
|
|||||
Fairvalueinputsquantitativeinformationabstract [Abstract] | |||||
Fair Value inputs, Capacity Prices | 10.18 | 10.18 | |||
Fair Value Inputs, Renewable Energy Credit Prices | 60 | 60 | |||
Fair Value Inputs Level 2 [Member] | Public Service Company Of New Hampshire [Member]
|
|||||
Derivative Instrument Detail Abstract | |||||
Derivative Assets - Current | 1,000,000 | 1,000,000 | |||
Fair Value Inputs Level 2 [Member] | Subsidiaries [Member]
|
|||||
Derivative Instrument Detail Abstract | |||||
Derivative Liabilities - Current | (13,900,000) | (13,900,000) | |||
Derivative Liabilities, Noncurrent | (8,800,000) | (8,800,000) | |||
Derivative Assets Noncurrent | 400,000 | 400,000 | |||
Fair Value Inputs Level 3 [Member] | The Connecticut Light And Power Company [Member]
|
|||||
Derivative Instrument Detail Abstract | |||||
Derivative Assets - Current | 6,000,000 | 6,000,000 | 6,300,000 | ||
Derivative Liabilities - Current | (97,700,000) | (97,700,000) | (95,900,000) | ||
Derivative Liabilities, Noncurrent | (910,100,000) | (910,100,000) | (935,800,000) | ||
Derivative Assets Noncurrent | 91,100,000 | 91,100,000 | 93,800,000 | ||
Fair Value Inputs Level 3 [Member] | Western Massachusetts Electric Company [Member]
|
|||||
Derivative Instrument Detail Abstract | |||||
Derivative Liabilities - Current | (900,000) | (900,000) | (100,000) | ||
Derivative Liabilities, Noncurrent | (12,600,000) | (12,600,000) | (7,200,000) | ||
Fair Value Inputs Level 3 [Member] | Subsidiaries [Member]
|
|||||
Derivative Instrument Detail Abstract | |||||
Derivative Assets - Current | 5,800,000 | 5,800,000 | 4,700,000 | ||
Derivative Liabilities - Current | (11,600,000) | ||||
Derivative Liabilities, Noncurrent | (16,900,000) | ||||
Derivative Assets Noncurrent | 2,100,000 | 2,100,000 | 4,600,000 | ||
Fair Value Inputs Level 3 [Member] | NSTAR Electric Company [Member]
|
|||||
Derivative Instrument Detail Abstract | |||||
Derivative Liabilities - Current | (700,000) | (700,000) | |||
Derivative Liabilities, Noncurrent | (15,100,000) | (15,100,000) | |||
Netting And Collateral [Member]
|
|||||
Derivative Instrument Detail Abstract | |||||
Derivative Assets - Current | (12,100,000) | (12,100,000) | (11,600,000) | ||
Derivative Liabilities - Current | 4,600,000 | 4,600,000 | 4,500,000 | ||
Derivative Liabilities, Noncurrent | 0 | 0 | 400,000 | ||
Derivative Assets Noncurrent | (76,200,000) | (76,200,000) | (80,400,000) | ||
Netting And Collateral [Member] | Fair Value Inputs Level 2 [Member] | Subsidiaries [Member]
|
|||||
Derivative Instrument Detail Abstract | |||||
Derivative Liabilities - Current | 4,600,000 | 4,600,000 | |||
Derivative Assets Noncurrent | (100,000) | (100,000) | |||
Netting And Collateral [Member] | Fair Value Inputs Level 3 [Member] | The Connecticut Light And Power Company [Member]
|
|||||
Derivative Instrument Detail Abstract | |||||
Derivative Assets - Current | (12,100,000) | (12,100,000) | (11,600,000) | ||
Derivative Assets Noncurrent | (76,100,000) | (76,100,000) | (80,400,000) | ||
Netting And Collateral [Member] | Fair Value Inputs Level 3 [Member] | Subsidiaries [Member]
|
|||||
Derivative Instrument Detail Abstract | |||||
Derivative Liabilities - Current | 4,500,000 | ||||
Derivative Liabilities, Noncurrent | 400,000 | ||||
Derivative Assets Noncurrent | 0 | 0 | |||
Designated As Hedging Instrument [Member] | Fair Value Inputs Level 2 [Member]
|
|||||
Derivative Instrument Detail Abstract | |||||
Derivative Assets - Current | 2,300,000 | ||||
Commodity [Member]
|
|||||
Derivative Instrument Detail Abstract | |||||
Derivative Assets - Current | 24,900,000 | 24,900,000 | 22,600,000 | ||
Derivative Liabilities - Current | (117,800,000) | (117,800,000) | (112,100,000) | ||
Derivative Liabilities, Noncurrent | (946,600,000) | (946,600,000) | (960,300,000) | ||
Derivative Assets Noncurrent | 169,800,000 | 169,800,000 | 178,800,000 | ||
Other Derivatives Not Designated As Hedging Instruments At Fair Value Net Total Abstract | |||||
Description of Derivative Activity Volume | As of June 30, 2012 and December 31, 2011, NU had approximately 37 thousand MWh and 123 thousand MWh, respectively, of supply volumes remaining in its unregulated wholesale portfolio when expected sales are compared with supply contracts. Commodity supply and price risk management: As required by regulation, CL&P has capacity-related contracts with generation facilities. These contracts and similar UI contracts have an expected capacity of 787 MW. CL&P has a sharing agreement with UI, with 80 percent of each contract allocated to CL&P and 20 percent allocated to UI. The capacity contracts have terms up to 15 years and obligate the utilities to make or receive payments on a monthly basis to or from the generation facilities based on the difference between a set capacity price and the forward capacity market price received in the ISO-NE capacity markets. In addition, CL&P has a contract to purchase 0.1 million MWh of energy per year through 2020. NSTAR Electric has a renewable energy contract to purchase approximately 60 thousand MWh of energy per year through 2017. NSTAR Electric also has a capacity related contract for approximately 25 MW to 35 MW that extends through 2019. WMECO has a renewable energy contract to purchase 0.1 million MWh of energy per year through 2027 with a facility that is expected to achieve commercial operation by December 2012. | ||||
Derivative Instruments Not Designated As Hedging Instruments Gain Loss Net Abstract | |||||
Derivative Instruments Gain Loss Recognized In Income Net | (200,000) | 500,000 | (1,000,000) | 800,000 | |
Derivative Instruments Gain Loss Recognized In Regulatory Asset Liability | (40,800,000) | (14,700,000) | (33,500,000) | (45,200,000) | |
Commodity [Member] | Fair Value Inputs Level 2 [Member] | Public Service Company Of New Hampshire [Member]
|
|||||
Derivative Instrument Detail Abstract | |||||
Derivative Assets - Current | 1,000,000 | 1,000,000 | |||
Commodity [Member] | Fair Value Inputs Level 2 [Member] | Subsidiaries [Member]
|
|||||
Derivative Instrument Detail Abstract | |||||
Derivative Liabilities - Current | (18,500,000) | (18,500,000) | |||
Derivative Liabilities, Noncurrent | (8,800,000) | (8,800,000) | |||
Derivative Assets Noncurrent | 500,000 | 500,000 | |||
Commodity [Member] | Fair Value Inputs Level 3 [Member] | The Connecticut Light And Power Company [Member]
|
|||||
Derivative Instrument Detail Abstract | |||||
Derivative Assets - Current | 18,100,000 | 18,100,000 | 17,900,000 | ||
Derivative Liabilities - Current | (97,700,000) | (97,700,000) | (95,900,000) | ||
Derivative Liabilities, Noncurrent | (910,100,000) | (910,100,000) | (935,800,000) | ||
Derivative Assets Noncurrent | 167,200,000 | 167,200,000 | 174,200,000 | ||
Commodity [Member] | Fair Value Inputs Level 3 [Member] | Western Massachusetts Electric Company [Member]
|
|||||
Derivative Instrument Detail Abstract | |||||
Derivative Liabilities - Current | (900,000) | (900,000) | (100,000) | ||
Derivative Liabilities, Noncurrent | (12,600,000) | (12,600,000) | (7,200,000) | ||
Commodity [Member] | Fair Value Inputs Level 3 [Member] | Subsidiaries [Member]
|
|||||
Derivative Instrument Detail Abstract | |||||
Derivative Assets - Current | 5,800,000 | 5,800,000 | 4,700,000 | ||
Derivative Liabilities - Current | (16,100,000) | ||||
Derivative Liabilities, Noncurrent | (17,300,000) | ||||
Derivative Assets Noncurrent | 2,100,000 | 2,100,000 | 4,600,000 | ||
Commodity [Member] | Fair Value Inputs Level 3 [Member] | NSTAR Electric Company [Member]
|
|||||
Derivative Instrument Detail Abstract | |||||
Derivative Liabilities - Current | (700,000) | (700,000) | |||
Derivative Liabilities, Noncurrent | $ (15,100,000) | $ (15,100,000) | $ (3,400,000) |
Guarantees and Indemnifications (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2012
|
---|---|
Guarantee Of Financial Obligations Of Npt [Member]
|
|
Guarantee Obligations [Line Items] | |
Guarantee Obligations Maximum Exposure | $ 25.0 |
Various Subsidiary Surety Bonds Expiring Between 2012 And 2013 [Member]
|
|
Guarantee Obligations [Line Items] | |
Guarantee Obligations Maximum Exposure | 35.0 |
Guarantee Of Letters Of Credit [Member]
|
|
Guarantee Obligations [Line Items] | |
Guarantee Obligations Maximum Exposure | 19.5 |
Guarantee Of Rocky River Reality And Nusco Lease Payments For Real Estate And Vehicles Expiring 2019 Through 2024 [Member]
|
|
Guarantee Obligations [Line Items] | |
Guarantee Obligations Maximum Exposure | 21.9 |
Guarantee Of Nuei Surety Bonds Insurance Bonds And Performance Guarantees [Member]
|
|
Guarantee Obligations [Line Items] | |
Guarantee Obligations Maximum Exposure | 109.4 |
Guarantee Of Ngs Performance Expiring In 2020 [Member]
|
|
Guarantee Obligations [Line Items] | |
Guarantee Obligations Maximum Exposure | 14.0 |
Guarantee Of Ngs Insurance Bond [Member]
|
|
Guarantee Obligations [Line Items] | |
Guarantee Obligations Maximum Exposure | 1.2 |
Guarantee Of Es Boulos Surety Bonds Expiring Upon Project Completion [Member]
|
|
Guarantee Obligations [Line Items] | |
Guarantee Obligations Maximum Exposure | 48.8 |
Guarantee Of Select Energy Wholesale Purchase Contracts [Member]
|
|
Guarantee Obligations [Line Items] | |
Guarantee Obligations Maximum Exposure | 45.4 |
Guarantee of NE Hydro Companies' Long-Term Debt [Member]
|
|
Guarantee Obligations [Line Items] | |
Guarantee Obligations Maximum Exposure | $ 6.6 |
Other Income, Net (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Component Of Other Income Nonoperating [Line Items] | ||||
Other Income/(Loss), Net | $ 1,806 | $ 7,334 | $ 10,580 | $ 17,647 |
The Connecticut Light And Power Company [Member]
|
||||
Component Of Other Income Nonoperating [Line Items] | ||||
Other Income/(Loss), Net | 447 | 2,058 | 5,747 | 6,663 |
Public Service Company Of New Hampshire [Member]
|
||||
Component Of Other Income Nonoperating [Line Items] | ||||
Other Income/(Loss), Net | 549 | 4,361 | 2,590 | 8,820 |
Western Massachusetts Electric Company [Member]
|
||||
Component Of Other Income Nonoperating [Line Items] | ||||
Other Income/(Loss), Net | $ 188 | $ 242 | $ 1,280 | $ 981 |
DERIVATIVE INSTRUMENTS
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Notes To Consolidated Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 5. DERIVATIVE INSTRUMENTS
The Regulated companies purchase and procure energy and energy-related products for their customers, which are subject to price volatility. The costs associated with supplying energy to customers are recoverable through customer rates. The Company manages the risks associated with the price volatility of energy and energy-related products through the use of derivative contracts, many of which meet the definition of and are designated as "normal purchases or normal sales," (normal), and the use of nonderivative contracts.
Derivative contracts that are not recorded as normal under the applicable accounting guidance are recorded at fair value as current or long-term derivative assets or liabilities. For the Regulated companies, regulatory assets or liabilities are recorded for the changes in fair values of derivatives, as these contracts are part of current regulated operating costs, or have an allowed recovery mechanism, and management believes that these costs will continue to be recovered from or refunded to customers in cost-of-service, regulated rates. Changes in fair values of NU's remaining unregulated wholesale marketing contracts are included in Net Income. The costs and benefits of derivative contracts that meet the definition of normal are recognized in Operating Expenses or Operating Revenues on the accompanying unaudited condensed consolidated statements of income, as applicable, as electricity or natural gas is delivered.
CL&P, NSTAR Electric and WMECO mitigate the risks associated with the price volatility of energy and energy-related products through the use of SS, LRS, and basic service contracts, which fix the price of electricity purchased for customers and are accounted for as normal. CL&P has entered into derivatives, including FTR contracts, to manage the risk of congestion costs associated with its SS and LRS contracts. As required by regulation, CL&P has also entered into derivative and nonderivative contracts for the purchase of energy and energy-related products and contracts related to capacity. NSTAR Electric and WMECO have contracts to purchase renewable energy that are derivatives. NSTAR Electric also has a capacity related contract. While the risks managed by these contracts relate to capacity prices, regional congestion costs, and the development of renewable energy that are not specific to CL&P, NSTAR Electric and WMECO, electric distribution companies are required to enter into these contracts. NU also has NYMEX future contracts in order to reduce variability associated with the purchase price of approximately 6.2 million MMBtu of natural gas.
The costs or benefits from all of these derivative contracts are recoverable from or refundable to customers, and, therefore changes in fair value are recorded as Regulatory Assets or Regulatory Liabilities on the accompanying unaudited condensed consolidated balance sheets.
NU, through Select Energy, has one remaining fixed price forward sales contract to serve electrical load that is part of its remaining unregulated wholesale energy marketing portfolio. NU mitigates the price risk associated with this contract through the use of forward purchase contracts. The contracts are accounted for at fair value, and changes in their fair values are recorded in Purchased Power, Fuel and Transmission on the accompanying unaudited condensed consolidated statements of income.
The gross fair values of derivative assets and liabilities with the same counterparty are offset and reported as net Derivative Assets or Derivative Liabilities, with current and long-term portions, in the accompanying unaudited condensed consolidated balance sheets. Cash collateral posted or collected under master netting agreements is recorded as an offset to the derivative asset or liability. The following tables present the gross fair values of contracts, including capacity contracts required by regulation, and the net amounts recorded as current or long-term derivative liability or asset, by primary underlying risk exposure or purpose:
(1) Amounts represent cash collateral posted under master netting agreements and the netting of derivative assets and liabilities. See "Credit Risk" below for discussion of cash collateral posted under master netting agreements.
(2) Current derivative assets are included in Prepayments and Other Current Assets on the accompanying unaudited condensed consolidated balance sheets. NSTAR Electric and WMECO derivative liabilities are included in Other Current Liabilities and Other Long-Term Liabilities on their accompanying unaudited condensed consolidated balance sheets. The NSTAR Electric amounts are not included in NU consolidated as of December 31, 2011.
(3) In addition to the amounts reflected in the table, as of December 31, 2011, NU had $2.3 million of hedging instruments that were classified as Level 2 in the fair value hierarchy, which related to a fair value hedge that expired on April 2, 2012 and was included in Prepayments and Other Current Assets on the accompanying unaudited condensed consolidated balance sheet.
(4) As of December 31, 2011, NSTAR Electric had $3.4 million of derivative liabilities classified as Level 3 within the fair value hierarchy and included in Other Long-Term Liabilities on the accompanying NSTAR Electric unaudited condensed consolidated balance sheet. These amounts are not included in NU consolidated as of December 31, 2011.
For further information on the fair value of derivative contracts, see Note 1E, "Summary of Significant Accounting Policies - Fair Value Measurements."
Derivatives not designated as hedges Commodity supply and price risk management: As required by regulation, CL&P has capacity-related contracts with generation facilities. These contracts and similar UI contracts have an expected capacity of 787 MW. CL&P has a sharing agreement with UI, with 80 percent of each contract allocated to CL&P and 20 percent allocated to UI. The capacity contracts have terms up to 15 years and obligate the utilities to make or receive payments on a monthly basis to or from the generation facilities based on the difference between a set capacity price and the forward capacity market price received in the ISO-NE capacity markets. In addition, CL&P has a contract to purchase 0.1 million MWh of energy per year through 2020.
NSTAR Electric has a renewable energy contract to purchase approximately 60 thousand MWh of energy per year through 2017. NSTAR Electric also has a capacity related contract for approximately 25 MW to 35 MW that extends through 2019.
WMECO has a renewable energy contract to purchase 0.1 million MWh of energy per year through 2027 with a facility that is expected to achieve commercial operation by December 2012.
As of June 30, 2012 and December 31, 2011, NU had approximately 37 thousand MWh and 123 thousand MWh, respectively, of supply volumes remaining in its unregulated wholesale portfolio when expected sales are compared with supply contracts.
The following table presents the realized and unrealized gains/(losses) associated with NU's derivative contracts not designated as hedges (See Level 3 tables below for CL&P, NSTAR Electric and WMECO gains and losses on derivative contracts):
Hedging instruments Fair Value Hedge: NU parent had a fixed to floating interest rate swap on its $263 million, fixed rate senior note that matured on April 1, 2012. This interest rate swap qualified and was designated as a fair value hedge. Prior to the settlement of the swap on April 2, 2012, $2.5 million of interest benefit was recorded in net income in the first quarter of 2012. For the three and six months ended June 30, 2011, $2.7 million and $5.4 million of interest benefit was recorded in net income, respectively.
Cash Flow Hedges: In 2011, PSNH and WMECO settled interest rate swaps associated with $280 million and $50 million, respectively, of long-term debt issuances and as a result PSNH and WMECO recorded pre-tax reductions of $18.2 million and $6.9 million, respectively, to AOCI that are being amortized over the remaining lives of the associated debt. NU reclassified $0.7 million and $1.6 million of losses from AOCI into interest expense for the three and six months ended June 30, 2012, respectively. These amounts were $0.1 million and $0.2 million for the three and six months ended June 30, 2011, respectively. Credit Risk Certain of NU's contracts contain credit risk contingent features. These features require NU to maintain investment grade credit ratings from the major rating agencies and to post cash or standby LOCs as collateral for contracts in a net liability position over specified credit limits. The following summarizes the fair value of derivative contracts that were in a liability position and subject to credit risk contingent features, the fair value of cash collateral, and the additional collateral in the form of LOCs that would be required to be posted by NU if the unsecured debt credit ratings of NU parent were downgraded to below investment grade as of June 30, 2012 and December 31, 2011:
Fair Value Measurements of Derivative Instruments Valuation of Derivative Instruments: Derivative contracts classified as Level 2 in the fair value hierarchy relate to the financial contracts for natural gas futures and the remaining unregulated wholesale marketing sourcing contracts to purchase energy for periods in which prices are quoted in an active market. Prices are obtained from broker quotes and are based on actual market activity. The contracts are valued using the mid-point of the bid-ask spread. Valuations of these contracts also incorporate discount rates using the yield curve approach.
The fair value of derivative contracts classified as Level 3 utilize significant unobservable inputs. The fair value is modeled using income techniques, such as discounted cash flow approaches adjusted for assumptions relating to exit price. Significant observable inputs for valuations of these contracts include energy and energy-related product prices in future years for which quoted prices in an active market exist. Fair value measurements categorized in Level 3 of the fair value hierarchy are prepared by individuals with expertise in valuation techniques, pricing of energy and energy-related products, and accounting requirements. The future power and capacity prices for periods that are not quoted in an active market or established at auction are based on available market data and are escalated based on estimates of inflation to address the full time period of the contract.
Valuations of derivative contracts using discounted cash flow methodology include assumptions regarding the timing and likelihood of scheduled payments and also reflect non-performance risk, including credit, using the default probability approach based on the counterparty's credit rating for assets and the company's credit rating for liabilities. Valuations incorporate estimates of premiums or discounts that would be required by a market participant to arrive at an exit price, using historical market transactions adjusted for the terms of the contract.
The following is a summary of NU's, including CL&P's, NSTAR Electric's and WMECO's, Level 3 derivative contracts and the range of the significant unobservable inputs utilized in the valuations over the duration of the contracts
Exit price premiums of 10 percent through 32 percent are also applied on these contracts.
Significant increases or decreases in future power or capacity prices in isolation would decrease or increase, respectively, the fair value of the derivative liability. Any increases in the risk premiums would increase the fair value of the derivative liabilities. Changes in these fair values are recorded as a regulatory asset or liability and would not impact net income.
Valuations using significant unobservable inputs: The following tables present changes for the three and six months ended June 30, 2012 and 2011 in the Level 3 category of derivative assets and derivative liabilities measured at fair value on a recurring basis. The derivative assets and liabilities are presented on a net basis. The fair value as of January 1, 2012 reflects a reclassification of remaining unregulated wholesale marketing sourcing contracts that had previously been presented as a portfolio along with the unregulated wholesale marketing sales contract as Level 3 under the highest and best use valuation premise. These contracts are now classified within Level 2 of the fair value hierarchy.
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