8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  February 20, 2008

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

Not Applicable

--------------

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2   -

Financial Information

Item 2.02

Results of Operations and Financial Condition.

On February 20, 2008, Northeast issued a news release announcing its unaudited results of operations for the three and twelve month periods ending December 31, 2007 and related financial information for certain of its subsidiaries for the same periods.  A copy of the news release and related unaudited financial reports are attached as Exhibits 99.1 and 99.2, and are incorporated herein by reference thereto.  The information contained in this report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by Northeast Utilities or any subsidiary thereof under the Securities Act of 1933, as amended, unless specified otherwise.

Section 9 – Financial Statements and Exhibits

Item 9.01 –

 Financial Statements and Exhibits.

(d)

 Exhibits.

Exhibit Number	Description
Exhibit 99.1	News Release issued by Northeast Utilities on February 20, 2008.
Exhibit 99.2	Unaudited Balance Sheets as of December 31, 2007 and 2006; unaudited Consolidated Statements of Income/(Loss) for the years ended December 31, 2007, 2006 and 2005; unaudited Consolidated Statements of Income for the three months ended December 31, 2007 and 2006 and the unaudited Consolidated Statements of Cash Flows for the years ended December 31, 2007, 2006 and 2005.

[SIGNATURE PAGE TO FOLLOW]

SIGNATURE

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.

NORTHEAST UTILITIES

THE CONNECTICUT LIGHT AND POWER COMPANY

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

WESTERN MASSACHUSETTS ELECTRIC COMPANY

(Registrants)

By:  /s/ Shirley M. Payne

Name:  Shirley M. Payne

Title:    Vice President-Accounting and Controller

Date:  February 20, 2008

EX-99

P. O. Box 270

Hartford, CT  06141-0270

107 Selden Street

Berlin, CT  06037

(860)-665-5000

News Release

CONTACT:

Jeffrey R. Kotkin

OFFICE:

(860) 665-5154

NU REPORTS 2007 RESULTS

Consolidated earnings of $246.5 million, or $1.59 per share

2008 consolidated earnings guidance narrowed to $1.65-$1.90 per share

Middletown-Norwalk transmission project ahead of schedule, now forecast for mid-2009 completion

BERLIN, Connecticut, February 20, 2008 — Northeast Utilities (NYSE:  NU) today reported 2007 earnings of $246.5 million, or $1.59 per share, compared with 2006 earnings of $470.6 million, or $3.05 per share.  In the fourth quarter of 2007, NU earned $72.7 million, or $0.47 per share, compared with earnings of $347.0 million, or $2.24 per share, in the fourth quarter of 2006.

Results in 2007 did not include a number of nonrecurring items that affected earnings in 2006, two of which were:

-

A fourth quarter consolidated gain of $314.1 million, or $2.03 per share¹, associated with the sale of NU’s competitive generation business; and

-

A third quarter reduction of income tax expense of $74.0 million, or $0.48 per share¹, associated with the sale of other generating plants formerly owned by The Connecticut Light and Power Company (CL&P), NU’s largest subsidiary.

Excluding the impact of those items, NU’s regulated and parent segments earned $178.2 million, or $1.16 per share¹, in 2006, and $54.9 million, or $0.36 per share¹, in the fourth quarter of 2006.  In 2007, those same segments earned $234.8 million, or $1.51 per share¹, and in the fourth quarter of 2007, those segments earned $69.1 million, or $0.45 per share¹.

“2007 was a very strong year for Northeast Utilities,” said Charles W. Shivery, NU chairman, president and chief executive officer.  “We operated our energy delivery systems and New Hampshire generating plants very reliably and invested a record amount of capital to meet the needs of our customers throughout New England.  We also achieved significant growth in operating earnings and produced a very attractive total return for our shareholders.”  

Shivery attributed NU’s improved operating results in 2007 to higher distribution and transmission revenues.  Higher distribution revenues were due in part to the recognition in rates of the capital costs related to upgrading energy distribution systems and successfully bringing into service two major capital projects – a 1.2 bcf liquefied natural gas (LNG) storage and production facility owned by Yankee Gas and a 50-megawatt renewable power plant owned by Public Service Company of New Hampshire (PSNH). The higher transmission revenues were the result of the company’s increased investment in electric transmission facilities to meet the energy reliability needs of the region’s customers.

“The transmission investments are creating a more reliable New England energy infrastructure and at the same time significantly lowering congestion costs,” Shivery said.

Shivery listed a number of accomplishments in NU’s capital program:

·

Yankee Gas completed the aforementioned $108 million LNG facility in Waterbury, Connecticut on time and on budget in mid-2007.  Natural gas bought in the summer and stored in Waterbury has helped protect Yankee Gas customers from the impact of significantly higher costs of gas on the coldest winter days.

·

CL&P’s $1.05 billion share of the 69-mile, 345-kV Middletown-Norwalk, Connecticut transmission project is currently about 69 percent complete.  Originally due to be in service by the end of 2009, construction is currently ahead of schedule and the company now expects it to be completed in mid-2009.

·

CL&P’s $223 million, 115-kV Glenbrook Cables project between Norwalk and Stamford, Connecticut is currently about 73 percent complete and is expected to be placed in service by the end of 2008.

·

CL&P’s $72 million share of a project to replace undersea transmission cables between Norwalk and Northport, Long Island is now about 71 percent complete and is expected to be placed in service in the second half of 2008.

Additionally, Shivery noted that CL&P’s $335 million Bethel, Connecticut to Norwalk 345-kV transmission project and PSNH’s $74 million, 50-megawatt renewable Northern Wood Power Project, both of which entered service in late 2006, operated well in 2007 to the benefit of customers, shareholders and area communities.  The Bethel-Norwalk project reduced Connecticut congestion costs by approximately $150 million in its first year in service.

Shivery said NU continues to work with ISO-New England to refine the design criteria of its next series of major transmission projects.  They include a significant upgrade of the 115-kV underground cables around Springfield, Massachusetts to address thermal overload and voltage issues.  They also include construction of three new 345-kV transmission lines in Massachusetts and Connecticut as part of a comprehensive series of projects known as the New England East-West Solution (NEEWS) project.  NU currently estimates that the Springfield Underground Cables Project will cost approximately $350 million and the NEEWS projects will cost approximately $1.05 billion.  The company currently expects to update project costs by mid-year 2008.

The company expects to begin work on the 115-kV Springfield Underground Cables Project in 2009 with completion projected in 2011.  It expects to begin work on the NEEWS projects by 2010 with completion projected in 2013.

Transmission results

In 2007, NU’s transmission segment earnings grew to $82.5 million, or $0.53 per share¹, compared with $59.8 million, or $0.39 per share¹, in 2006.  In the fourth quarter of 2007, NU’s transmission segment earned $25.5 million, compared with $16.2 million in the fourth quarter of 2006.  Higher earnings resulted from a significantly higher level of investment, particularly in the aforementioned southwest Connecticut projects.

Distribution and Generation results

NU’s distribution and generation segment earned $146.2 million in 2007, or $0.94 per share¹, compared with $197.5 million, or $1.28 per share¹, in 2006.  Excluding the one-time $74.0 million reduction in CL&P income tax expense, the distribution and generation segment earned $123.5 million, or $0.80 per share¹, in 2006.  Shivery attributed the improved results primarily to increased revenues, driven in part by a 1.5 percent increase in retail electric sales and a 10.3 percent increase in firm natural gas sales, as well as higher distribution rates, and lower storm-related expenses.  In the fourth quarter of 2007, NU’s distribution and generation segment earned $46.1 million, compared with earnings of $47.1 million in the fourth quarter of 2006.

CL&P’s distribution segment earned $17.1 million in the fourth quarter of 2007 and $61.4 million for the full year 2007, compared with earnings of $33.4 million in the fourth quarter of 2006 and $147.6 million for the full year 2006.  The lower full year results in 2007 reflect the absence of the 2006 $74.0 million income tax expense reduction.  The lower fourth quarter results in 2007 were in part due to a $7.7 million after-tax benefit CL&P received in 2006 related to the sale of NU’s competitive generation assets.  Lower fourth quarter 2007 results were also due to the absence of a procurement fee that expired at the end of 2006 and higher operating and interest expenses, partially offset by higher distribution rates and higher sales.

PSNH’s distribution and generation segment earned $12.0 million in the fourth quarter of 2007 and $43.7 million for the full year 2007, compared with $5.8 million in the fourth quarter of 2006 and $27.0 million for the full year 2006.  Improved results were due to a lower effective tax rate, higher distribution rates, and the operation of the renewable Northern Wood Power Project.

WMECO’s distribution segment earned $4.9 million in the fourth quarter of 2007 and $18.5 million for the full year 2007, compared with earnings of $2.4 million in the fourth quarter of 2006 and $11.0 million in the full year 2006.  Improved 2007 results were primarily due to higher distribution revenues.

Yankee Gas earned $12.1 million in the fourth quarter of 2007 and $22.6 million for the full year of 2007, compared with earnings of $5.5 million in the fourth quarter of 2006 and $11.9 million for the full year of 2006.  Yankee Gas benefited from higher firm sales and distribution rates and the completion of the LNG facility.

Competitive businesses

The risk profile of NU’s remaining competitive businesses continues to improve as existing wholesale contracts expire.  NU Enterprises, Inc. (NUEI) earned $3.6 million in the fourth quarter of 2007 and $11.7 million for the full year of 2007, compared with earnings of $285.0 million in the fourth quarter of 2006 and $211.3 million for the full year 2006.  The lower results in 2007 primarily reflect the absence of the gain in 2006 from the sale of NUEI’s competitive generation business.  

NU Parent and other subsidiaries

NU Parent and its service company affiliates lost $2.5 million in the fourth quarter of 2007 and

earned $6.1 million for the full year 2007, compared with a loss of $1.3 million in the fourth quarter of 2006 and earnings of $2.0 million for the full year 2006.  Shivery said the larger fourth quarter 2007 loss primarily reflects higher net interest costs.

2008 earnings guidance

NU today narrowed its previously announced 2008 consolidated earnings range to between $1.65 per share and $1.90 per share.  That range includes projected distribution and generation segment earnings of between $1.05 per share and $1.15 per share¹, transmission earnings of between $0.75 per share and $0.85 per share¹, parent losses of between $0.10 per share and $0.15 per share¹, and breakeven competitive business results.  Shivery said the company lowered distribution and generation segment guidance from the previous $1.10-$1.25 per share¹ range because of a recent ruling by state regulators on a CL&P distribution rate case in which CL&P was authorized a return on equity (ROE) of 9.40 percent.  

Shivery said the company understands the commission’s need to balance the interests of customers and investors during a period of high energy costs, but the company was nevertheless disappointed in the rate case outcome.  NU estimates CL&P’s distribution regulatory ROE will be between 8.0 percent and 8.5 percent during the first full year that rates are effective due to certain necessary operating costs that regulators ruled were not recoverable in distribution rates.  

The higher transmission earnings range is primarily due to work on the Middletown-Norwalk transmission project being ahead of schedule.

NU also today amended its projected five-year compounded annual earnings per share (EPS) growth rate to 8-11 percent using as a base the $1.59 per share NU earned in 2007.  Shivery said NU’s five-year EPS expectations continue to reflect the company’s attractive growth opportunities.  But the company adjusted its growth rate lower because 2007 earnings were higher than it had previously anticipated.  The EPS growth rate noted above assumes that NU meets the $6 billion capital investment projection it previously announced for the 2008-2012 period and that the company is allowed to earn reasonable returns on those investments.

NU has approximately 155 million common shares outstanding.  It operates New England’s largest energy delivery system, serving more than 2 million customers in Connecticut, New Hampshire and Massachusetts.

The following table reconciles 2007 and 2006 fourth-quarter and full-year results:  

		Fourth Quarter	Twelve Months
2006	Reported EPS	$2.24	$3.05
	Gain on Sale of Competitive Generation Business	($2.03)	($2.04)
	Competitive business loss in 2006	$0.15	$0.63
	Regulated and Parent EPS in 2006	$0.36	$1.64
	Impact of reduction in CL&P tax expense	--	($0.48)
	Regulated and Parent EPS in 2006 excluding reduction in CL&P tax expense and impact of generation sale	$0.36	$1.16
	Improved transmission earnings in 2007	$0.06	$0.14
	Improved/(lower) distribution, generation results in 2007, excluding reduction in CL&P tax expense	($0.01)	$0.14
	Improved Parent/Other results in 2007	$0.04	$0.07
	Regulated and Parent EPS in 2007	$0.45	$1.51
	Competitive business results in 2007	$0.02	$0.08
2007	Reported EPS	$0.47	$1.59

Financial results for the fourth quarter and twelve months of 2007 and 2006 are noted below.

Three months ended:

(in millions, except EPS)	December 31, 2007	December 31, 2006	Increase (Decrease)	2007 EPS 1
CL&P Distribution	$17.1	$33.4	($16.3)	$0.11
PSNH Distribution/Generation	$12.0	$5.8	$6.2	$0.08
WMECO Distribution	$4.9	$2.4	$2.5	$0.03
Yankee Gas	$12.1	$5.5	$6.6	$0.08
Total—Distribution/Generation	$46.1	$47.1	($1.0)	$0.30
CL&P Transmission	$19.4	$12.9	$6.5	$0.12
PSNH Transmission	$4.2	$1.6	$2.6	$0.03
WMECO Transmission	$1.9	$1.7	$0.2	$0.01
Total—Transmission	$25.5	$16.2	$9.3	$0.16
Total—Regulated Businesses	$71.6	$63.3	$8.3	$0.46
NU Parent and Other Affiliates	($2.5)	($1.3)	($1.2)	($0.01)
Total—Regulated and Parent	$69.1	$62.0	$7.1	$0.45
Total—Competitive, including $307 million 2006 gain from sale of generation business	$3.6	$285.0	($281.4)	$0.02
Reported Earnings	$72.7	$347.0	($274.3)	$0.47

Twelve months ended:

(in millions, except EPS)	December 31, 2007	December 31, 2006	Increase (Decrease)	2007 EPS1
CL&P Distribution, including $74 million 2006 reduction in CL&P tax expense	$61.4	$147.6	($86.2)	$0.39
PSNH Distribution/Generation	$43.7	$27.0	$16.7	$0.28
WMECO Distribution	$18.5	$11.0	$7.5	$0.12
Yankee Gas	$22.6	$11.9	$10.7	$0.15
Total—Distribution/Generation inc. $74mm 2006 reduction in CL&P tax expense	$146.2	$197.5	($51.3)	$0.94
CL&P Transmission	$66.7	$46.9	$19.8	$0.43
PSNH Transmission	$10.7	$8.3	$2.4	$0.07
WMECO Transmission	$5.1	$4.6	$0.5	$0.03
Total—Transmission	$82.5	$59.8	$22.7	$0.53
Total—Regulated Businesses	$228.7	$257.3	($28.6)	$1.47
NU Parent and Other Affiliates	$6.1	$2.0	$4.1	$0.04
Total—Regulated and Parent	$234.8	$259.3	($24.5)	$1.51
Total Competitive, including $307 million 2006 gain from sale of generation business	$11.7	$211.3	($199.6)	$0.08
Reported Earnings	$246.5	$470.6	($224.1)	$1.59

Retail sales data:

Gwh for three months ended	December 31, 2007	December 31, 2006	Percent Change
CL&P	5,886	5,659	4.0%
PSNH	2,013	1,975	1.9%
WMECO	976	961	1.5%
Total NU	8,871	8,590	3.3%
Gwh for twelve months ended
CL&P	24,032	23,638	1.7%
PSNH	8,132	8,034	1.2%
WMECO	3,996	3,972	0.6%
Total NU	36,142	35,620	1.5%
Yankee Gas firm volumes in mmcf for three months ended	11,391	9,843	15.7%
Yankee Gas firm volumes in mmcf for twelve months ended	38,900	35,276	10.3%

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 Securities Litigation Reform Act of 1995.  In some cases, readers 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 or inactions by local, state and fede ral regulatory bodies; competition and industry restructuring; changes in economic conditions; changes in weather patterns; changes in laws, regulations or regulatory policy; changes in levels or 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; subsequent recognition, derecognition and measurement of tax positions; and other presently unknown or unforeseen factors. Other risk factors are detailed from time to time in our reports to the Securities and Exchange Commission.  Any forward looking statement speaks only as of the date on which such statement is made, and 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.

¹ All per share amounts in this news release are reported on a fully diluted basis.  The only common equity securities that are publicly traded are common shares of NU.  The EPS of each segment does not represent a direct legal interest in the assets and liabilities allocated to any one segment but rather represents a direct interest in NU's assets and liabilities as a whole.  EPS by segment is a non-GAAP (not determined using generally accepted accounting principles) measure that is calculated by dividing the net income or loss of each segment by the average fully diluted NU common shares outstanding for the period.  Management uses this measure to provide segmented earnings guidance and believes that this measurement is useful to investors to evaluate the actual financial performance and contribution of NU’s business segments.  Also, two discreet 2006 events have been highlighted or excluded in expressing earnings and EP S for 2006.  Expressing or excluding these two 2006 events in terms of earnings and EPS is a non-GAAP measure that is being provided to increase comparability of the year-over-year results.  These non-GAAP measures should not be considered as an alternative to NU consolidated net income and EPS determined in accordance with GAAP as an indicator of NU’s operating performance.

#  #  #  #

Note:  NU will webcast an investor presentation on Thursday, February 21, 2008 at 2 p.m. Eastern Standard Time.  The webcast can be accessed through NU’s website at www.nu.com.  

EX-99

NORTHEAST UTILITIES AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME/(LOSS)
(Unaudited)
For the Years Ended December 31,	2007	2006	2005
	(Thousands of Dollars, except share information)
Operating Revenues	$     5,822,226	$     6,877,687	$     7,346,226
Operating Expenses:
Operation -
Fuel, purchased and net interchange power	3,350,673	4,630,798	5,528,600
Other	961,129	1,113,032	1,003,776
Restructuring and impairment charges	156	8,502	36,103
Maintenance	211,589	193,706	178,225
Depreciation	265,297	240,559	224,815
Amortization	40,674	16,292	202,949
Amortization of rate reduction bonds	201,039	188,247	176,356
Taxes other than income taxes	252,188	250,580	247,555
Total operating expenses	5,282,745	6,641,716	7,598,379
Operating Income/(Loss)	539,481	235,971	(252,153)
Interest Expense:
Interest on long-term debt	162,841	141,579	131,870
Interest on rate reduction bonds	61,580	74,242	87,439
Other interest	15,824	22,375	19,276
Interest expense, net	240,245	238,196	238,585
Other Income, Net	61,639	64,394	54,532
Income/(Loss) from Continuing Operations Before
Income Tax Expense/(Benefit)	360,875	62,169	(436,206)
Income Tax Expense/(Benefit)	109,420	(76,326)	(184,862)
Income/(Loss) from Continuing Operations Before
Preferred Dividends of Subsidiary	251,455	138,495	(251,344)
Preferred Dividends of Subsidiary	5,559	5,559	5,559
Income/(Loss) from Continuing Operations	245,896	132,936	(256,903)
Discontinued Operations:
Income from Discontinued Operations	435	31,321	11,720
Gains/(Losses) from Sale/Disposition of Discontinued Operations	2,054	504,314	(1,123)
Income Tax Expense	1,902	197,993	6,177
Income from Discontinued Operations	587	337,642	4,420
Income/(Loss) Before Cumulative Effect of Accounting Change, Net of Tax Benefit	246,483	470,578	(252,483)
Cumulative Effect of Accounting Change, Net of Tax Benefit of $689	-	-	(1,005)
Net Income/(Loss)	$        246,483	$        470,578	$      (253,488)
Basic Earnings/(Loss) Per Common Share:
Income/(Loss) from Continuing Operations	$              1.59	$              0.86	$            (1.95)
Income from Discontinued Operations	-	2.20	0.03
Cumulative Effect of Accounting Change, Net of Tax Benefit	-	-	(0.01)
Basic Earnings/(Loss) Per Common Share	$              1.59	$              3.06	$            (1.93)
Fully Diluted Earnings/(Loss) Per Common Share:
Income/(Loss) from Continuing Operations	$              1.59	$              0.86	$            (1.95)
Income from Discontinued Operations	-	2.19	0.03
Cumulative Effect of Accounting Change, Net of Tax Benefit	-	-	(0.01)
Fully Diluted Earnings/(Loss) Per Common Share	$              1.59	$              3.05	$            (1.93)
Basic Common Shares Outstanding (weighted average)	154,759,727	153,767,527	131,638,953
Fully Diluted Common Shares Outstanding (weighted average)	155,304,361	154,146,669	131,638,953

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
(Unaudited)
For the Three Months Ended December 31,	2007	2006
	(Thousands of Dollars, except share information)
Operating Revenues	$                  1,275,959	$               1,483,435
Operating Expenses:
Operation -
Fuel, purchased and net interchange power	594,151	932,203
Other	280,635	297,457
Restructuring and impairment charges	-	(2,130)
Maintenance	51,908	50,221
Depreciation	76,330	60,837
Amortization	20,879	(32,463)
Amortization of rate reduction bonds	49,723	46,411
Taxes other than income taxes	58,753	57,534
Total operating expenses	1,132,379	1,410,070
Operating Income	143,580	73,365
Interest Expense:
Interest on long-term debt	44,688	36,310
Interest on rate reduction bonds	14,280	17,182
Other interest	652	4,133
Interest expense, net	59,620	57,625
Other Income, Net	24,963	25,948
Income from Continuing Operations Before
Income Tax Expense	108,923	41,688
Income Tax Expense	34,238	6,755
Income from Continuing Operations Before
Preferred Dividends of Subsidiary	74,685	34,933
Preferred Dividends of Subsidiary	1,390	1,390
Income from Continuing Operations	73,295	33,543
Discontinued Operations:
Income/(Loss) from Discontinued Operations	171	(16,688)
Gains from Sale/Disposition of Discontinued Operations	127	510,736
Income Tax Expense	881	180,598
(Loss)/Income from Discontinued Operations	(583)	313,450
Net Income	$                       72,712	$                  346,993
Basic Earnings Per Common Share:
Income from Continuing Operations	$                           0.47	$                        0.22
Income from Discontinued Operations	-	2.03
Basic Earnings Per Common Share	$                           0.47	$                        2.25
Fully Diluted Earnings Per Common Share:
Income from Continuing Operations	$                           0.47	$                        0.21
Income from Discontinued Operations	-	2.03
Fully Diluted Earnings Per Common Share	$                           0.47	$                        2.24
Basic Common Shares Outstanding (weighted average)	155,028,315	154,115,281
Fully Diluted Common Shares Outstanding (weighted average)	155,591,553	154,667,384

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)	2007	2006
ASSETS
Current Assets:
Cash and cash equivalents	$               15,104	$             481,911
Special deposits	18,871	48,524
Investments in securitizable assets	308,182	375,655
Receivables, less provision for uncollectible
accounts of $25,529 in 2007 and $22,369 in 2006	401,283	361,201
Unbilled revenues	101,860	88,170
Taxes receivable	13,850	-
Fuel, materials and supplies	210,850	173,882
Marketable securities - current	70,816	67,546
Derivative assets - current	105,517	88,699
Prepayments and other	39,923	45,305
Assets held for sale	-	158
	1,286,256	1,731,051
Property, Plant and Equipment:
Electric utility	7,594,606	7,129,526
Gas utility	977,290	858,961
Other	310,535	299,389
	8,882,431	8,287,876
Less: Accumulated depreciation: $2,483,570 for electric
and gas utility and $178,193 for other in 2007;
$2,440,544 for electric and gas utility and
$174,562 for other in 2006	2,661,763	2,615,106
	6,220,668	5,672,770
Construction work in progress	1,009,277	569,416
	7,229,945	6,242,186
Deferred Debits and Other Assets:
Regulatory assets	2,057,083	2,449,132
Goodwill	287,591	287,591
Prepaid pension	202,512	21,647
Marketable securities - long-term	53,281	50,843
Derivative assets - long-term	298,001	271,755
Other	167,153	249,031
	3,065,621	3,329,999
Total Assets	$        11,581,822	$        11,303,236

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)	2007	2006
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes payable to banks	$                     79,000	$                              -
Long-term debt - current portion	154,286	4,877
Accounts payable	598,546	569,940
Accrued taxes	-	364,659
Accrued interest	56,592	53,782
Derivative liabilities - current	71,601	125,781
Other	246,125	244,734
Liabilities of assets held for sale	-	62
	1,206,150	1,363,835
Rate Reduction Bonds	917,436	1,177,158
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes	1,067,490	1,099,433
Accumulated deferred investment tax credits	28,845	32,427
Deferred contractual obligations	222,908	271,528
Regulatory liabilities	851,780	809,324
Derivative liabilities - long-term	208,461	148,557
Accrued postretirement benefits	181,507	203,320
Other	383,611	322,840
	2,944,602	2,887,429
Capitalization:
Long-Term Debt	3,483,599	2,960,435
Preferred Stock of Subsidiary - Non-Redeemable	116,200	116,200
Common Shareholders' Equity:
Common shares, $5 par value - authorized
225,000,000 shares; 175,924,694 shares issued
and 155,079,770 shares outstanding in 2007 and
175,420,239 shares issued and 154,233,141 shares
outstanding in 2006	879,623	877,101
Capital surplus, paid in	1,465,946	1,449,586
Deferred contribution plan - employee stock
ownership plan	(26,352)	(34,766)
Retained earnings	946,792	862,660
Accumulated other comprehensive income	9,359	4,498
Treasury stock, 19,705,545 shares in 2007
and 19,684,249 shares in 2006	(361,533)	(360,900)
Common Shareholders' Equity	2,913,835	2,798,179
Total Capitalization	6,513,634	5,874,814
Total Liabilities and Capitalization	$              11,581,822	$              11,303,236

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,	2007	2006	2005
	(Thousands of Dollars)
Operating Activities:
Net income/(loss)	$               246,483	$               470,578	$              (253,488)
Adjustments to reconcile to net cash flows
provided by operating activities:
Pre-tax (gains)/losses from sale/disposition of discontinued operations	(2,054)	(504,314)	1,123
Restructuring and impairment charges	(2,304)	(2,282)	67,181
Bad debt expense	29,140	29,366	27,528
Depreciation	265,297	243,822	237,463
Deferred income taxes	6,933	(204,212)	(202,789)
Amortization	40,674	16,292	202,949
Amortization of rate reduction bonds	201,039	188,247	176,356
Amortization of recoverable energy costs	11,715	15,609	39,914
Pension expense, net of capitalized portion	18,143	38,677	42,662
Wholesale contract buyout payments	-	-	(186,531)
Regulatory overrecoveries/(refunds)	37,010	(96,560)	(65,236)
Derivative assets and liabilities	(43,808)	(98,685)	443,351
Deferred contractual obligations	(41,950)	(90,671)	(89,464)
Other non-cash adjustments	(6,766)	22,675	45,112
Other sources of cash	-	10,655	5,528
Other uses of cash	(21,088)	(10,134)	-
Changes in current assets and liabilities:
Receivables and unbilled revenues, net	(65,381)	605,366	(208,519)
Fuel, materials and supplies	(33,727)	16,718	(17,848)
Investments in securitizable assets	33,531	(158,651)	(113,410)
Other current assets	3,878	58,350	46,462
Accounts payable	(49,554)	(399,386)	131,043
Counterparty deposits and margin special deposits	29,505	26,469	(86,229)
Taxes (receivable)/accrued	(392,611)	271,477	156,630
Other current liabilities	(15,670)	(42,332)	41,416
Net cash flows provided by operating activities	248,435	407,074	441,204
Investing Activities:
Investments in property and plant	(1,114,824)	(872,181)	(775,355)
Net proceeds from sales of competitive businesses	-	1,053,099	31,456
Cash payments related to the sale of competitive businesses	(16,648)	(32,359)	-
Proceeds from sales of investment securities	254,832	193,459	137,099
Purchases of investment securities	(261,777)	(193,917)	(142,260)
Rate reduction bond escrow and other deposits	63,722	(50,686)	45,955
Other investing activities	7,229	19,649	3,560
Net cash flows (used in)/provided by investing activities	(1,067,466)	117,064	(699,545)
Financing Activities:
Issuance of common shares	9,056	9,494	450,827
Issuance of long-term debt	655,000	250,000	350,355
Retirements of rate reduction bonds	(259,722)	(173,344)	(195,988)
Increase/(decrease) in short-term debt	79,000	(32,000)	(148,000)
Retirements of long-term debt	(4,877)	(28,843)	(98,056)
Cash dividends on common shares	(120,988)	(112,745)	(87,554)
Other financing activities	(5,245)	(571)	(14,450)
Net cash flows provided by/(used in) financing activities	352,224	(88,009)	257,134
Net (decrease)/increase in cash and cash equivalents	(466,807)	436,129	(1,207)
Cash and cash equivalents - beginning of year	481,911	45,782	46,989
Cash and cash equivalents - end of year	$                 15,104	$               481,911	$                 45,782

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.