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 17, 2009

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 17, 2009, Northeast Utilities issued a news release announcing its unaudited results of operations for the three and twelve month periods ending December 31, 2008 and related financial information for certain of its subsidiaries as of and 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 17, 2009.
Exhibit 99.2	Unaudited Consolidated Balance Sheets as of December 31, 2008 and 2007; unaudited Consolidated Statements of Income for the years ended December 31, 2008, 2007 and 2006; unaudited Consolidated Statements of Income for the three months ended December 31, 2008 and 2007 and unaudited Consolidated Statements of Cash Flows for the years ended December 31, 2008, 2007 and 2006.

[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 17, 2009

EX-99

Exhibit 99.1

 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 STRONG 2008 OPERATIONAL, FINANCIAL RESULTS

--- Final SW Connecticut Transmission Work Completed Ahead of Schedule, Below Budget

--- 2008 Earnings of $1.67/Share; $1.86/Share¹, Excluding Charge

--- 2009 EPS Guidance of $1.80-$2.00 Reaffirmed

BERLIN, Connecticut, February 17, 2009 — Northeast Utilities (NU: NYSE) today reported strong operational and financial results for 2008, a year when it completed several major transmission projects, commenced a number of initiatives to increase the New England region’s access to cleaner energy, and improved both earnings and cash flow.

NU earned $260.8 million, or $1.67 per share, in 2008, compared with 2007 earnings of $246.5 million, or $1.59 per share.  Results for 2008 include a first-quarter charge of $29.8 million, or $0.19 per share, associated with the settlement of litigation.  Absent that charge, NU earned $290.6 million, or $1.86 per share¹, in 2008.  In the fourth quarter of 2008, NU earned $71.9 million, or $0.46 per share, compared with earnings of $72.7 million, or $0.47 per share, in the fourth quarter of 2007.

“In addition to these strong full-year financial results, we successfully accomplished a number of our key operational and strategic objectives in 2008,”said Charles W. Shivery, NU’s chairman, president and chief executive officer.  “In December, we completed our $1.6 billion upgrade of the transmission system in southwest Connecticut ahead of schedule and $80 million below budget.  We are proud of the work we have accomplished to help the region meet its long-term energy goals of increasing reliability, while also providing improved access to lower cost, as well as more efficient and lower carbon electricity sources.”

Shivery said NU continues to develop a number of proposals to help New England meet its energy and environmental goals.  For example:

·

In December 2008, NU and NSTAR filed an application for a declaratory order with the Federal Energy Regulatory Commission, taking the first step toward building a high-voltage direct current line in New Hampshire to access significant new sources of low-carbon power generated by Hydro-Quebec;

·

In February 2009, Western Massachusetts Electric Company (WMECO) filed an application with Massachusetts regulators seeking to install at least 6 megawatts of solar generation under the state’s new Green Communities Act; and

·

Currently, The Connecticut Light and Power Company (CL&P) is signing up 3,000 of its customers for a pilot Advanced Metering Infrastructure program it will run in Connecticut this summer.

“These programs are very supportive of both federal and state energy policies to increase energy efficiency and reduce the environmental impact of electricity generation,” Shivery said.  “As these programs develop, they will provide long-term benefits to our customers and communities, while continuing to provide competitive returns to investors.”

Transmission results

Shivery attributed NU’s improved operating results in 2008 primarily to growth in the company’s transmission segment, where the company has invested heavily in recent years to improve the reliability of the region’s energy grid.  NU’s transmission segment earned $34.7 million in the fourth quarter of 2008 and $138.3 million for the full year of 2008, compared with earnings of $25.5 million in the fourth quarter of 2007 and $82.5 million for the full year 2007.  

Distribution and Generation results

NU’s distribution and generation segments earned $36.0 million in the fourth quarter of 2008 and $150.8 million for the full year of 2008, compared with earnings of $46.1 million in the fourth quarter of 2007 and $146.2 million for the full year of 2007.

CL&P’s distribution segment earned $12.8 million in the fourth quarter of 2008, including a $3.5 million after-tax regulatory charge, and $70 million for the full year 2008.  This compares to earnings of $17.1 million in the fourth quarter of 2007 and $61.4 million for the full year 2007.  Improved full-year results were due primarily to tariff changes that took effect February 1, 2008, partially offset by higher operation and interest expense and the $3.5 million charge referenced above.  The fourth-quarter charge related to a Connecticut Department of Public Utility Control decision in January 2009 denying CL&P a procurement incentive for electricity it purchased for CL&P customers in 2004.  The final decision reversed a draft decision issued more than three years ago.

Public Service Company of New Hampshire’s (PSNH) distribution and generation segment earned $9.1 million in the fourth quarter of 2008 and $41.4 million for the full year of 2008, compared with earnings of $12 million in the fourth quarter of 2007 and $43.7 million for the full year 2007.  Shivery attributed the weaker fourth quarter results primarily to higher depreciation and interest expense and a 6.8 percent decrease in retail sales compared with the fourth quarter of 2007.  

Shivery said an ice storm that struck New Hampshire and Massachusetts the night of December 11, 2008, had a modest negative impact on PSNH’s fourth quarter results.  That storm resulted in power outages that affected approximately 320,000 of PSNH’s 490,000 customers.  The cost of the storm to PSNH is expected to total approximately $85 million.  PSNH expects to recover its costs associated with the storm.

WMECO’s distribution segment earned $2.2 million in the fourth quarter of 2008 and $12.3 million for the full year 2008, compared with earnings of $4.9 million in the fourth quarter of 2007 and $18.5 million for the full year 2007.  Shivery said lower WMECO results in both the fourth quarter and for the full year were due primarily to a 4.2 percent decline in full-year sales, higher uncollectible expense and higher interest expense.  WMECO incurred $14 million of costs associated with the December 11 ice storm.  WMECO expects to recover its costs associated with the storm.

Overall, NU’s electric sales were down 3.5 percent for the full year 2008, compared with 2007, and were off 2.6 percent on a weather-adjusted basis.  Residential sales were down 3.6 percent, commercial sales were off 1.4 percent, and industrial sales were down 8.6 percent.  The decline in industrial sales was due primarily to weaker economic conditions and a state and utility supported program to encourage the installation of distributed generation in Connecticut.

Yankee Gas Services Company earned $11.9 million in the fourth quarter of 2008 and $27.1 million for the full year 2008, compared with earnings of $12.1 million in the fourth quarter of 2007 and $22.6 million for the full year 2007.  Improved full-year 2008 results were primarily due to the impact of new rates that were effective in July 2007 and a 2.1 percent increase in firm sales in 2008.

Competitive business results

NU Enterprises, Inc. (NUEI), the holding company for NU’s competitive businesses, earned

$4.3 million in the fourth quarter of 2008 and $13.1 million for the full year 2008, compared with $3.6 million in the fourth quarter of 2007 and $11.7 million for the full year 2007.  The improved results were primarily due to favorable mark-to-market results and improved margins on remaining wholesale marketing contracts.

NU Parent and other company results

NU parent and other companies had net expenses of $3.1 million in the fourth quarter of 2008 and $11.6 million for the full year 2008, excluding the first quarter litigation charge, compared with net expenses of $2.5 million in the fourth quarter of 2007 and net income of $6.1 million for the full year 2007.  Lower results primarily reflect the absence of interest earned on NU parent’s higher cash balances in 2007, which were the result of the sale of the company’s competitive generation facilities in late 2006.

2009 earnings guidance

NU reaffirmed its 2009 consolidated earnings guidance of between $1.80 per share and $2.00 per share.  That guidance includes estimates of between $1.00 per share and $1.10¹ per share for its distribution and generation segment, between $0.85 per share and $0.90¹ per share for its transmission segment, between $0.00 and $0.05¹ per share for its remaining competitive businesses, and net expenses of approximately $0.05¹ per share for NU parent and other companies.

The following table reconciles 2008 and 2007 fourth-quarter and full-year results:  

		Fourth Quarter1	Full Year1
2007	Reported EPS	$0.47	$1.59
	Improved transmission earnings in 2008	$0.06	$0.36
	Lower/improved distribution, generation results in 2008	($0.07)	$0.02
	Lower Parent/Other results in 2008, excluding litigation settlement impact	($0.01)	($0.11)
	Improved competitive business results in 2008	$0.01	$0.00
	Consolidated results, excluding litigation settlement impact	$0.46	$1.86
	Impact of litigation settlement	---	($0.19)
2008	Reported EPS	$0.46	$1.67

Financial results for the fourth quarter and full-year 2008 and 2007 are noted below.

Three months ended:

(in millions, except EPS)	December 31, 2008	December 31, 2007	Increase   (Decrease)	2008 EPS1
CL&P Distribution	$12.8	$17.1	($4.3)	$0.08
PSNH Distribution/Generation	$9.1	$12.0	($2.9)	$0.06
WMECO Distribution	$2.2	$4.9	($2.7)	$0.01
Yankee Gas	$11.9	$12.1	($0.2)	$0.08
Total—Distribution/Generation	$36.0	$46.1	($10.1)	$0.23
CL&P Transmission	$29.1	$19.4	$9.7	$0.19
PSNH Transmission	$4.3	$4.2	$0.1	$0.02
WMECO Transmission	$1.3	$1.9	($0.6)	$0.01
Total—Transmission	$34.7	$25.5	$9.2	$0.22
NU Parent and Other Companies	($3.1)	($2.5)	($0.6)	($0.02)
Competitive	$4.3	$3.6	$0.7	$0.03
Reported Earnings	$71.9	$72.7	($0.8)	$0.46

12 months ended:

(in millions, except EPS)	December 31, 20081	December 31, 20071	Increase   (Decrease)	2008 EPS1
CL&P Distribution	$70.0	$61.4	$8.6	$0.45
PSNH Distribution/Generation	$41.4	$43.7	($2.3)	$0.26
WMECO Distribution	$12.3	$18.5	($6.2)	$0.08
Yankee Gas	$27.1	$22.6	$4.5	$0.17
Total—Distribution/Generation	$150.8	$146.2	$4.6	$0.96
CL&P Transmission	$115.6	$66.7	$48.9	$0.74
PSNH Transmission	$16.7	$10.7	$6.0	$0.11
WMECO Transmission	$6.0	$5.1	$0.9	$0.04
Total—Transmission	$138.3	$82.5	$55.8	$0.89
NU Parent and Other Companies, excluding litigation charge	($11.6)	$6.1	($17.7)	($0.07)
Competitive	$13.1	$11.7	$1.4	$0.08
Total before litigation settlement impact	$290.6	$246.5	$44.1	$1.86
Litigation charge	($29.8)	---	($29.8)	($0.19)
Reported Earnings	$260.8	$246.5	$14.3	$1.67

Retail sales data:

Gwh for three months ended	December 31,         2008	December 31,           2007	% Change    Actual	% Change Weather Norm.
CL&P	5,644	5,886	(4.1%)	(3.6%)
PSNH	1,875	2,013	(6.8%)	(6.8%)
WMECO	926	976	(5.1%)	(4.9%)
Total NU	8,441	8,871	(4.9%)	(4.5%)
Gwh for 12 months ended
CL&P	23,145	24,032	(3.7%)	(2.8%)
PSNH	7,926	8,132	(2.5%)	(1.6%)
WMECO	3,829	3,996	(4.2%)	(3.5%)
Total NU	34,883	36,142	(3.5%)	(2.6%)
Yankee Gas firm volumes in mmcf for three months ended	12,218	11,391	7.3%	4.7%
Yankee Gas firm volumes in mmcf for 12 months ended	39,717	38,900	2.1%	3.4%

NU has approximately 156 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.

This news release includes statements concerning NU’s expectations, plans, objectives, goals, strategies, assumptions of future events, future financial performance or growth or 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 through the use of words or phrases such as “estimate”, “expect”, “anticipate”, “intend”, “plan”, “project,” “believe”, “forecast”, “should”, “could”, and other 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 m ay 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 federal regulatory bodies; changes in business and economic conditions, including their impact on interest rates, bad debt expense and demand for our products and services; changes in weather patterns; changes in laws, regulations or regulatory policy; changes in levels or timing of capital expenditures; disruptions of the capital markets or events that make our access to necessary capital more difficult or costly; developments in legal or public policy doctrines; technological developments; changes in accounting standards and financial reporting regulations; fluctuations in the value of our remaining competitive electricity positions; actions of rating agencies; and other presently unknown or unforeseen factors. Other risk factors are detailed from time to time in our reports to the Securities and Exchange Commission.  Any forward-l ooking 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 earnings and EPS of each segment do not represent a direct legal interest in the assets and liabilities allocated to any one segment but rather represent 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 actual and projected earnings by segment and believes that this measurement is useful to investors to evaluate the actual and projected financial performance and contribution of NU’s business segments.  This release also references our 2008 earnings and EPS excluding a significant charge associated with a litigation settlement payment made to Consolidated Edison, Inc., which are non-GAAP measures.  Due to the nature and significance of the litigation charge, management believes that this non-GAAP presentation is more representative of our performance and provides additional and useful information to investors in analyzing historical and future performance.  These non-GAAP measures should not be considered alternatives to NU consolidated net income and EPS determined in accordance with GAAP as an indicator of NU’s operating performance.

# # # #

Note:  NU will webcast a discussion concerning its 2008 results tomorrow, February 18, at 2 p.m. Eastern Standard Time.  The webcast can be accessed through NU’s website at www.nu.com.

EX-99

Exhibit 99.2

NORTHEAST UTILITIES AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
	At December 31,
(Thousands of Dollars)	2008	2007
ASSETS
Current Assets:
Cash and cash equivalents	$                89,816	$                15,104
Investments in securitizable assets	-	308,182
Receivables, less provision for uncollectible
accounts of $43,275 in 2008 and $25,529 in 2007	698,755	401,283
Unbilled revenues	218,440	101,860
Taxes receivable	-	13,850
Fuel, materials and supplies	300,049	210,850
Marketable securities - current	78,452	70,816
Derivative assets - current	31,373	105,517
Prepayments and other	88,679	58,794
	1,505,564	1,286,256
Property, Plant and Equipment:
Electric utility	9,219,351	7,594,606
Gas utility	1,043,687	977,290
Other	290,156	310,535
	10,553,194	8,882,431
Less: Accumulated depreciation: $2,610,479 for electric
and gas utility and $159,639 for other in 2008;
$2,483,570 for electric and gas utility and
$178,193 for other in 2007	2,770,118	2,661,763
	7,783,076	6,220,668
Construction work in progress	424,800	1,009,277
	8,207,876	7,229,945
Deferred Debits and Other Assets:
Regulatory assets	3,502,606	2,057,083
Goodwill	287,591	287,591
Prepaid pension	-	202,512
Marketable securities - long-term	30,757	53,281
Derivative assets - long-term	241,814	298,001
Other	212,272	167,153
	4,275,040	3,065,621
Total Assets	$         13,988,480	$         11,581,822
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)	2008	2007
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes payable to banks	$           618,897	$             79,000
Long-term debt - current portion	54,286	154,286
Accounts payable	678,614	598,546
Accrued taxes	12,527	-
Accrued interest	69,818	56,592
Derivative liabilities - current	100,919	71,601
Other	168,401	246,125
	1,703,462	1,206,150
Rate Reduction Bonds	686,511	917,436
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes	1,223,461	1,067,490
Accumulated deferred investment tax credits	25,371	28,845
Deferred contractual obligations	193,016	222,908
Regulatory liabilities	592,540	851,780
Derivative liabilities - long-term	912,426	208,461
Accrued pension	740,930	-
Accrued postretirement benefits	240,371	181,507
Other	430,718	383,611
	4,358,833	2,944,602
Capitalization:
Long-Term Debt	4,103,162	3,483,599
Preferred Stock of Subsidiary - Non-Redeemable	116,200	116,200
Common Shareholders' Equity:
Common shares, $5 par value - authorized
225,000,000 shares; 176,212,275 shares issued
and 155,834,361 shares outstanding in 2008 and
175,924,694 shares issued and 155,079,770 shares
outstanding in 2007	881,061	879,623
Capital surplus, paid in	1,475,006	1,465,946
Deferred contribution plan - - employee stock ownership plan	(15,481)	(26,352)
Retained earnings	1,078,594	946,792
Accumulated other comprehensive (loss)/income	(37,265)	9,359
Treasury stock, 19,708,136 shares in 2008 and 19,705,545 shares in 2007	(361,603)	(361,533)
Common Shareholders' Equity	3,020,312	2,913,835
Total Capitalization	7,239,674	6,513,634
Total Liabilities and Capitalization	$      13,988,480	$      11,581,822
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 Years Ended December 31,
(Thousands of Dollars, except share information)	2008	2007	2006
Operating Revenues	$              5,800,095	$              5,822,226	$              6,877,687
Operating Expenses:
Operation - -
Fuel, purchased and net interchange power	2,996,180	3,350,673	4,630,798
Other	1,021,704	961,285	1,121,534
Maintenance	254,038	211,589	193,706
Depreciation	278,588	265,297	240,559
Amortization of regulatory assets, net	186,396	40,674	16,292
Amortization of rate reduction bonds	204,859	201,039	188,247
Taxes other than income taxes	267,565	252,188	250,580
Total operating expenses	5,209,330	5,282,745	6,641,716
Operating Income	590,765	539,481	235,971
Interest Expense:
Interest on long-term debt	193,883	162,841	141,579
Interest on rate reduction bonds	50,231	61,580	74,242
Other interest	25,031	15,824	22,375
Interest expense, net	269,145	240,245	238,196
Other Income, Net	50,428	61,639	64,394
Income from Continuing Operations Before
Income Tax Expense/(Benefit)	372,048	360,875	62,169
Income Tax Expense/(Benefit)	105,661	109,420	(76,326)
Income from Continuing Operations Before
Preferred Dividends of Subsidiary	266,387	251,455	138,495
Preferred Dividends of Subsidiary	5,559	5,559	5,559
Income from Continuing Operations	260,828	245,896	132,936
Discontinued Operations:
Income from Discontinued Operations	-	435	31,321
Gains from Sale/Disposition of Discontinued Operations	-	2,054	504,314
Income Tax Expense	-	1,902	197,993
Income from Discontinued Operations	-	587	337,642
Net Income	$                 260,828	$                 246,483	$                 470,578
Basic Earnings Per Common Share:
Income from Continuing Operations	$                       1.68	$                       1.59	$                       0.86
Income from Discontinued Operations	-	-	2.20
Basic Earnings Per Common Share	$                       1.68	$                       1.59	$                       3.06
Fully Diluted Earnings Per Common Share:
Income from Continuing Operations	$                       1.67	$                       1.59	$                       0.86
Income from Discontinued Operations	-	-	2.19
Fully Diluted Earnings Per Common Share	$                       1.67	$                       1.59	$                       3.05
Basic Common Shares Outstanding (weighted average)	155,531,846	154,759,727	153,767,527
Fully Diluted Common Shares Outstanding (weighted average)	155,999,240	155,304,361	154,146,669
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,
(Thousands of Dollars, except share information)	2008	2007
Operating Revenues	$             1,447,886	$          1,275,959
Operating Expenses:
Operation -
Fuel, purchased and net interchange power	710,114	594,151
Other	266,398	280,635
Maintenance	55,146	51,908
Depreciation	72,796	76,330
Amortization of regulatory assets, net	54,210	20,879
Amortization of rate reduction bonds	50,493	49,723
Taxes other than income taxes	67,432	58,753
Total operating expenses	1,276,589	1,132,379
Operating Income	171,297	143,580
Interest Expense:
Interest on long-term debt	51,550	44,688
Interest on rate reduction bonds	11,321	14,280
Other interest	6,676	652
Interest expense, net	69,547	59,620
Other Income, Net	8,818	24,963
Income from Continuing Operations Before
Income Tax Expense	110,568	108,923
Income Tax Expense	37,280	34,238
Income from Continuing Operations Before
Preferred Dividends of Subsidiary	73,288	74,685
Preferred Dividends of Subsidiary	1,390	1,390
Income from Continuing Operations	71,898	73,295
Discontinued Operations:
Income from Discontinued Operations	-	171
Gains from Sale/Disposition of Discontinued Operations	-	127
Income Tax Expense	-	881
Loss from Discontinued Operations	-	(583)
Net Income	$                  71,898	$                72,712
Basic and Fully Diluted Earnings Per Common Share:
Income from Continuing Operations	$                      0.46	$                    0.47
Income from Discontinued Operations	-	-
Basic and Fully Diluted Earnings Per Common Share	$                      0.46	$                    0.47
Basic Common Shares Outstanding (weighted average)	155,757,560	155,028,315
Fully Diluted Common Shares Outstanding (weighted average)	156,282,835	155,591,553
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,
(Thousands of Dollars)		2008		2007		2006
Operating Activities:
Net income	$	260,828	$	246,483	$	470,578
Adjustments to reconcile to net cash flows
provided by operating activities:
Pre-tax gains from sale/disposition of discontinued operations		-		(2,054)		(504,314)
Bad debt expense		28,573		29,140		29,366
Depreciation		278,588		265,297		243,822
Deferred income taxes		86,810		6,933		(204,212)
Amortization of investment tax credits		(3,474)		(3,583)		(3,673)
Pension and PBOP expense and contributions, net of capitalized portion		(3,839)		10,865		38,994
Stock-based compensation expense		13,518		13,855		14,718
Allowance for equity funds used during construction		(29,028)		(17,417)		(13,573)
Impairment of marketable securities		17,399		2,539		-
(Deferral)/amortization of recoverable energy costs		(10,590)		11,715		15,609
Amortization of rate reduction bonds		204,859		201,039		188,247
Amortization of regulatory assets, net		186,396		40,674		16,292
Regulatory (refunds and underrecoveries)/overrecoveries		(174,662)		37,010		(96,560)
Derivative assets and liabilities		(37,052)		(43,808)		(90,867)
Deferred contractual obligations		(32,326)		(41,950)		(90,671)
(Increase)/decrease in other deferred debits		(16,873)		(5,026)		2,837
Increase/(decrease) in other deferred credits		4,735		(8,784)		(10,451)
Other adjustments		(5,738)		(4,464)		22,921
Changes in current assets and liabilities:
Receivables and unbilled revenues, net		(141,879)		(65,381)		605,366
Fuel, materials and supplies		(74,531)		(33,727)		16,718
Investments in securitizable assets		(25,787)		33,531		(158,651)
Other current assets		(4,677)		3,878		58,350
Accounts payable		72,791		(49,554)		(399,386)
Counterparty deposits and margin special deposits		(7,474)		29,505		26,469
Taxes receivable/accrued		63,251		(392,611)		271,477
Other current liabilities		(400)		(15,670)		(42,332)
Net cash flows provided by operating activities		649,418		248,435		407,074
Investing Activities:
Investments in property and plant		(1,255,407)		(1,114,824)		(872,181)
Net proceeds from sales of competitive businesses		-		-		1,053,099
Cash payments related to the sale of competitive businesses		-		(16,648)		(32,359)
Proceeds from sales of marketable securities		259,361		254,832		193,459
Purchases of marketable securities		(262,357)		(261,777)		(193,917)
Rate reduction bond escrow and other deposits		1,686		63,722		(50,686)
Other investing activities		3,360		7,229		19,649
Net cash flows (used in)/provided by investing activities		(1,253,357)		(1,067,466)		117,064
Financing Activities:
Issuance of common shares related to share-based compensation		5,524		9,056		9,494
Cash dividends on common shares		(129,077)		(120,988)		(112,745)
Increase/(decrease) in short-term debt		539,897		79,000		(32,000)
Issuance of long-term debt		760,000		655,000		250,000
Reacquisition and retirements of long-term debt		(261,286)		(4,877)		(28,843)
Retirements of rate reduction bonds		(230,925)		(259,722)		(173,344)
Other financing activities		(5,482)		(5,245)		(571)
Net cash flows provided by/(used in) financing activities		678,651		352,224		(88,009)
Net increase/(decrease) in cash and cash equivalents		74,712		(466,807)		436,129
Cash and cash equivalents - beginning of year		15,104		481,911		45,782
Cash and cash equivalents - end of year	$	89,816	$	15,104	$	481,911
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.