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NU REPORTS ON COMPETITIVE BUSINESS DIVESTITURES, SECOND QUARTER RESULTS, REGULATED COMPANY INVESTMENTS

Significant Progress in Executing Strategic Plan, Exiting Competitive Businesses

Second Quarter Regulated Businesses Earnings Improve

Build-Out of Regulated Assets On or Ahead of Schedule

BERLIN, Connecticut, August 3, 2006—Northeast Utilities (NU-NYSE) today reported on significant progress made in the second quarter in executing the company’s strategic plan and released mid-year 2006 results.

“We are encouraged that we are on or ahead of schedule on our initiatives to divest our competitive businesses and increase our investment in our regulated companies,” said Charles W. Shivery, NU chairman, president, and chief executive officer. “We were also very pleased with the price obtained for our competitive generation assets, which is expected to produce between $500 million and $550 million of cash, after accounting for taxes and the associated debt. We will invest that cash primarily in the energy infrastructure New England needs.”

Shivery provided the following update on NU’s progress on becoming a company fully focused on its regulated businesses and their significant growth opportunities.

A purchase and sale agreement has been signed with Energy Capital Partners, a private equity firm, to sell all 1,442 megawatts of the NU system’s competitive generation for a total of $1.34 billion, including the assumption of $320 million in debt. NU expects this transaction to close by the end of this year and to use the proceeds to invest in its regulated businesses, retire debt, and pay taxes related to the sale.

The sales of the company’s retail marketing business and most of its energy services businesses have been completed.

The Connecticut Light and Power Company’s (CL&P) 21-mile, $350 million, 345-kV transmission project between Bethel, Connecticut and Norwalk, Connecticut is approximately 90 percent complete and expected to be in service by November 2006.

Yankee Gas Service Company’s 1.2 bcf, $108 million liquefied natural gas storage facility is about 65 percent complete and continues to be on schedule for operation during the 2007-2008 heating season.

Public Service Company of New Hampshire’s (PSNH) $75 million conversion of a 50-mW coal-burning unit to burn wood chips is well into testing and is expected to be declared commercial this fall.

Consolidated Second Quarter Results

NU earned $22.2 million, or $0.14 per share, in the second quarter of 2006, compared with a loss of $27.7 million, or $0.21 per share, in the second quarter of 2005. For the six months ended June 30, 2006, NU earned $12.1 million, or $0.08 per share, compared with a loss of $145.4 million, or $1.12 per share, in the same period of 2005.

NU’s four regulated utilities earned $33.5 million, or $0.22 per share, in the second quarter of 2006 and $88.1 million, or $0.58 per share, in the first half of 2006. Those businesses earned $22.0 million, or $0.17 per share, in the second quarter of 2005 and $75.6 million, or $0.58 per share, in the first half of 2005.

NU Parent and other affiliates accounted for $3.0 million of earnings in the second quarter and $0.9 million in the first half of 2006, compared with losses of $2.6 million in the second quarter and $6.5 million in the first half of 2005. Those improved results were due in part to increased investment income on cash raised in December 2005 when NU sold 23 million common shares. Also, second quarter 2006 results reflect a $2 million gain from the sale of NU’s shares in Globix Corporation, a telecommunications firm.

2006 Earnings Guidance

Shivery said CL&P’s third-quarter distribution results will include a gain of $0.48 per share as a result of a one-time $74 million reduction of income tax expense. That reduction is related to the treatment of excess deferred income taxes and unamortized investment tax credits related to generating plants that were sold by regulated utilities as a result of industry restructuring. That issue, which is industry-wide, was recently resolved by the Internal Revenue Service in a private letter ruling.

NU today updated its guidance, in part to account for that gain. NU now projects 2006 combined earnings for its regulated businesses and parent company of between $1.57 per share and $1.70 per share. NU projects earnings at its distribution and regulated generating companies of between $1.23 per share and $1.33 per share, including the reduction in CL&P’s income tax expense, and between $0.75 per share and $0.85 per share excluding it. Previously, NU had projected distribution company earnings of

$0.89 per share and $0.96 per share in 2006. Among other factors, NU’s distribution segments are being negatively affected by less rate relief and lower sales than previously anticipated.

Shivery said NU projects higher transmission business earnings of between $0.34 per share and $0.37 per share, up from the company’s previous estimate of between $0.32 per share and $0.35 per share. The increase is due in part to projects being constructed ahead of schedule. Also, primarily because of higher investment income, NU expects approximately breakeven performance at the parent level, up from a previously projected loss of $0.09 per share to $0.12 per share.

NU does not provide earnings guidance for its competitive businesses, which the company continues to divest. However, Shivery said NU expects to record an after-tax gain of approximately

$300 million, or approximately $1.95 per share, in the fourth quarter of 2006 related to the sale of competitive generation.

Regulated Business Results

The transmission segments of NU’s three electric companies earned $12.7 million in the second quarter of 2006 and $25.4 million in the first half of 2006, compared with $10.3 million in the second quarter of 2005 and $18.7 million in the first half of 2005. The improved results were due primarily to a higher level of investment.

NU’s regulated electric and natural gas distribution and electric generation business earned $20.8 million in the second quarter of 2006 and $62.7 million in the first half of 2006, compared with $11.7 million in the second quarter of 2005 and $56.9 million in the first half of 2005.

CL&P earned $16.1 million in the second quarter of 2006 and $48.6 million in the first half of 2006, compared with $11.0 million in the second quarter of 2005 and $36.2 million in the first half of 2005. Improved earnings resulted from higher transmission earnings due to higher investment levels and from the absence in 2006 of a $4.4 million after-tax charge that CL&P recorded in the second quarter of 2005 related to streetlighting refunds.

PSNH earned $14.9 million in the second quarter of 2006 and $20.0 million in the first half of 2006, compared with $9.0 million in the second quarter of 2005 and $17.8 million in the first half of 2005. The higher results were due primarily to the effects of completing PSNH’s amortization of Part 3 stranded costs in the second quarter of 2006. Some of the tax-related effects will reverse later this year and overall will have no impact on PSNH net income in 2006.

Western Massachusetts Electric Company (WMECO) earned $2.6 million in the second quarter of 2006 and $7.8 million in the first half of 2006, compared with $2.4 million in the second quarter of 2005 and $7.1 million in the first half of 2005. The improved results were due to a $3 million annualized rate increase that took effect at the beginning of 2006.

Yankee Gas lost $0.1 million in the second quarter of 2006 and earned $11.7 million in the first half of 2006, compared with a loss of $0.4 million in the second quarter of 2005 and earnings of $14.5 million in the first half of 2005. Yankee year-to-date earnings were lower due primarily to an 11.5 percent decline in firm sales in the first half of 2006, compared with the same period of 2005. The decline was primarily due to milder weather during the heating season in 2006.

Shivery said regulated electric sales were also slowed by the mild winter and lower use due to apparent customer reaction to higher energy prices. Overall, retail sales are down 3.0 percent through the first six months of 2006, compared with 2005, with residential sales off 5.2 percent, commercial sales off 1.0 percent and industrial sales down 2.2 percent. On a weather-adjusted basis, retail electric sales were down 0.8 percent in the first half of 2006, compared with the first half of 2005.

Shivery said NU’s overall regulated capital investment totaled $399.2 million in the first half of 2006, compared with $331.2 million in the first half of 2005. NU projects total capital investment of approximately $900 million in 2006.

Competitive Business Results

NU’s competitive energy businesses, which the company is divesting, lost $14.3 million in the second quarter of 2006 and $76.9 million in the first half of 2006, compared with losses of $47.1 million in the second quarter of 2006 and $214.5 million in the first half of 2005. The reduced level of losses was due primarily to a much lower impact in 2006 of marking to market wholesale electricity contracts, as well as a lower level of impairments and restructuring charges.

The following table reconciles 2006 and 2005 second-quarter and first-half results.


Commission	Registrant; State of Incorporation	I.R.S. Employer
File Number	Address; and Telephone Number	Identification No.
-----------	-----------------------------------	--------------------

1-5324	NORTHEAST UTILITIES	04-2147929
	---------------------------------------
	(a Massachusetts voluntary association)
	One Federal Street, Building 111-4
	Springfield, Massachusetts 01105
	Telephone: (413) 785-5871

0-00404	THE CONNECTICUT LIGHT AND POWER COMPANY	06-0303850
	---------------------------------------
	(a Connecticut corporation)
	107 Selden Street
	Berlin, Connecticut 06037-1616
	Telephone: (860) 665-5000

1-6392	PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE	02-0181050
	---------------------------------------
	(a New Hampshire corporation)
	Energy Park
	780 North Commercial Street
	Manchester, New Hampshire 03101-1134
	Telephone: (603) 669-4000

0-7624	WESTERN MASSACHUSETTS ELECTRIC COMPANY	04-1961130
	--------------------------------------
	(a Massachusetts corporation)
	One Federal Street, Building 111-4
	Springfield, Massachusetts 01105
	Telephone: (413) 785-5871


Exhibit Number	Description
Exhibit 99.1	News Release issued by Northeast Utilities on August 3, 2006.

Exhibit 99.2	Financial Report for the six month period ending June 30, 2006.


CONTACT:	Jeffrey R. Kotkin
OFFICE:	(860) 665-5154


		Second Quarter	First Half

2005	Reported EPS	($0.21)	($1.12)
	Competitive business loss in 2005	$0.36	$1.65
	Regulated and Parent EPS in 2005	$0.15	$0.53
	Regulated transmission earnings in 2006, net of dilution	---	$0.03
	Regulated distribution and generation earnings in 2006, net of dilution	$0.05	($0.03)
	Lower Parent costs in 2006, net of dilution	$0.04	$0.05
	Regulated and Parent EPS in 2006	$0.24	$0.58
	Competitive business loss in 2006	($0.10)	($0.50)
2006	Reported EPS	$0.14	$0.08


(in millions)	June 30, 2006	June 30, 2005	Increase (Decrease)
CL&P Distribution	$6.4	$4.6	$1.8
PSNH Distribution/Generation	$12.9	$6.6	$6.3
WMECO Distribution	$1.6	$0.9	$0.7
Yankee Gas	($0.1)	($0.4)	$0.3
Total—Distribution/ Regulated Generation	$20.8	$11.7	$9.1
CL&P Transmission	$9.7	$6.4	$3.3
PSNH Transmission	$2.0	$2.4	($0.4)
WMECO Transmission	$1.0	$1.5	($0.5)
Total—Transmission	$12.7	$10.3	$2.4
Total—Regulated Businesses	$33.5	$22.0	$11.5
NU Parent and Other Affiliates	$3.0	($2.6)	$5.6
Total—Regulated and Parent	$36.5	$19.4	$17.1
Total—Competitive Energy	($14.3)	($47.1)	$32.8
Reported Earnings	$22.2	($27.7)	$49.9


NORTHEAST UTILITIES AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
	June 30,	December 31,
	2006	2005
	(Thousands of Dollars)
ASSETS

Current Assets:
Cash and cash equivalents	$ 48,744	$ 45,782
Special deposits	17,804	103,789
Investments in securitizable assets	272,131	252,801
Receivables, less provision for uncollectible
accounts of $25,879 in 2006 and $24,444 in 2005	439,730	901,516
Unbilled revenues	78,916	175,853
Taxes receivable	125,665	-
Fuel, materials and supplies	159,120	206,557
Marketable securities - current	61,769	56,012
Derivative assets - current	168,778	403,507
Prepayments and other	92,861	129,242
Assets held for sale	856,925	101,784
	2,322,443	2,376,843

Property, Plant and Equipment:
Electric utility	6,679,131	6,378,838
Gas utility	842,800	825,872
Competitive energy	21,373	908,776
Other	274,163	254,659
	7,817,467	8,368,145
Less: Accumulated depreciation	2,552,349	2,551,322
	5,265,118	5,816,823
Construction work in progress	621,906	600,407
	5,887,024	6,417,230

Deferred Debits and Other Assets:
Regulatory assets	2,102,778	2,483,851
Goodwill	287,591	287,591
Prepaid pension	274,501	298,545
Marketable securities - long-term	49,632	56,527
Derivative assets - long-term	320,228	425,049
Other	214,755	223,439
	3,249,485	3,775,002










Total Assets	$ 11,458,952	$ 12,569,075



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 CONDENSED CONSOLIDATED STATEMENTS OF INCOME/(LOSS) (Unaudited)

	Three Months Ended June 30,		Six Months Ended June 30,
	2006	2005	2006	2005
	(Thousands of Dollars, except share information)

Operating Revenues	$ 1,670,531	$ 1,531,613	$ 3,817,919	$ 3,764,577

Operating Expenses:
Operation -
Fuel, purchased and net interchange power	1,106,280	979,925	2,643,480	2,649,087
Other	266,701	272,390	575,472	517,489
Wholesale contract market changes, net	12,861	69,574	19,691	258,466
Restructuring and impairment charges	3,282	2,120	8,425	23,654
Maintenance	49,200	50,219	87,621	86,522
Depreciation	59,589	55,124	118,355	110,258
Amortization	(1,078)	24,026	57,394	47,119
Amortization of rate reduction bonds	43,997	41,116	92,675	86,906
Taxes other than income taxes	54,442	53,210	130,867	127,404
Total operating expenses	1,595,274	1,547,704	3,733,980	3,906,905
Operating Income/(Loss)	75,257	(16,091)	83,939	(142,328)

Interest Expense:
Interest on long-term debt	36,716	32,833	72,527	63,056
Interest on rate reduction bonds	18,982	22,235	38,863	45,273
Other interest	7,626	8,230	13,626	11,314
Interest expense, net	63,324	63,298	125,016	119,643
Other Income, Net	12,676	10,288	28,096	16,194
Income/(Loss) from Continuing Operations Before
Income Tax Expense/(Benefit)	24,609	(69,101)	(12,981)	(245,777)
Income Tax Expense/(Benefit)	8,920	(32,104)	(9,385)	(96,873)
Income/(Loss) from Continuing Operations Before
Preferred Dividends of Subsidiary	15,689	(36,997)	(3,596)	(148,904)
Preferred Dividends of Subsidiary	1,389	1,389	2,779	2,779
Income/(Loss) from Continuing Operations	14,300	(38,386)	(6,375)	(151,683)
Discontinued Operations:
Income from Discontinued Operations,
Before Income Taxes	20,364	18,469	38,847	11,464
Loss from Sale of Discontinued Operations	(5,578)	-	(6,478)	-
Income Tax Expense	6,844	7,787	13,858	5,204
Income from Discontinued Operations	7,942	10,682	18,511	6,260
Net Income/(Loss)	$ 22,242	$ (27,704)	$ 12,136	$ (145,423)

Basic and Fully Diluted Earnings/(Loss) Per Common Share:
Income/(Loss) from Continuing Operations	$ 0.09	$ (0.30)	$ (0.04)	$ (1.17)
Income from Discontinued Operations	0.05	0.09	0.12	0.05
Basic and Fully Diluted Earnings/(Loss) Per Common Share	$ 0.14	$ (0.21)	$ 0.08	$ (1.12)

Basic Common Shares Outstanding (average)	153,628,709	129,520,644	153,535,675	129,399,574

Fully Diluted Common Shares Outstanding (average)	153,922,635	129,520,644	153,809,133	129,399,574

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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	Six Months Ended
	June 30,
	2006	2005
	(Thousands of Dollars)
Operating Activities:
Net income/(loss)	$ 12,136	$ (145,423)
Adjustments to reconcile to net cash flows
provided by operating activities:
Wholesale contract market changes, net	19,691	203,572
Restructuring and impairment charges	6,715	47,812
Bad debt expense	21,181	15,229
Depreciation	121,445	116,349
Deferred income taxes	168,525	(92,457)
Amortization	57,394	47,119
Amortization of rate reduction bonds	92,675	86,906
(Deferral)/amortization of recoverable energy costs	(7,616)	31,544
Pension expense	18,454	16,465
Regulatory refunds	(141,968)	(59,929)
Derivative assets and liabilities	(76,793)	13,158
Deferred contractual obligations	(50,282)	(43,407)
Other non-cash adjustments	(20,545)	34,804
Other sources of cash	22,147	4,148
Other uses of cash	(5,548)	(31,530)
Changes in current assets and liabilities:
Receivables and unbilled revenues, net	543,368	85,656
Fuel, materials and supplies	33,108	8,141
Investments in securitizable assets	(19,330)	(108,491)
Other current assets	11,664	(18,522)
Accounts payable	(408,632)	(11,856)
Counterparty deposits and margin special deposits	63,299	80,468
(Taxes receivable)/accrued taxes	(220,875)	25,886
Other current liabilities	(27,066)	(27,243)
Net cash flows provided by operating activities	213,147	278,399

Investing Activities:
Investments in property and plant:
Electric, gas and other utility plant	(370,652)	(327,081)
Competitive energy assets	(10,051)	(4,989)
Cash flows used for investments in property and plant	(380,703)	(332,070)
Net proceeds from sale of property	150	23,792
Cash payment for sale of competitive businesses	(19,429)	-
Proceeds from sales of investment securities	84,695	54,532
Purchases of investment securities	(79,903)	(56,003)
Other investing activities	(1,139)	5,543
Net cash flows used in investing activities	(396,329)	(304,206)

Financing Activities:
Issuance of common shares	4,068	7,565
Issuance of long-term debt	250,000	200,000
Retirement of rate reduction bonds	(103,327)	(96,729)
Increase/(decrease) in short-term debt	99,000	(2,844)
Reacquisitions and retirements of long-term debt	(10,631)	(48,459)
Cash dividends on common shares	(54,025)	(41,629)
Other financing activities	1,059	16,397
Net cash flows provided by financing activities	186,144	34,301
Net increase in cash and cash equivalents	2,962	8,494
Cash and cash equivalents - beginning of period	45,782	46,989
Cash and cash equivalents - end of period	$ 48,744	$ 55,483


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.