PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS

6 Months Ended

Jun. 30, 2011

Notes To Consolidated Financial Statements [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

7.       PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS

NUSCO sponsors a Pension Plan, which is subject to the provisions of ERISA, as amended by the PPA of 2006. The Pension Plan covers nonbargaining unit employees (and bargaining unit employees, as negotiated) of NU, including CL&P, PSNH, and WMECO, hired before 2006 (or as negotiated, for bargaining unit employees). In addition, NU maintains a SERP, which provides benefits to eligible participants who are officers of NU. This plan provides benefits that would have been provided to these employees under the Pension Plan if certain Internal Revenue Code limitations were not imposed. On behalf of NU's retirees, NUSCO also sponsors plans that provide certain retiree health care benefits, primarily medical and dental, and life insurance benefits through a PBOP Plan.

The components of net periodic benefit expense, the portion of pension amounts capitalized related to employees working on capital projects, and intercompany allocations not included in the net periodic benefit expense amounts for the Pension Plan (including the SERP) and PBOP Plan are as follows:

		For the Three Months Ended June 30, 2011
		Pension								PBOP
(Millions of Dollars)		NU		CL&P		PSNH		WMECO		NU		CL&P		PSNH		WMECO
Service Cost		$	14.0	$	4.9	$	2.7	$	1.0	$	2.1	$	0.7	$	0.5	$	0.2
Interest Cost			38.3		13.0		6.1		2.7		6.5		2.5		1.2		0.5
Expected Return on Plan Assets			(42.2)		(19.1)		(4.7)		(4.4)		(5.4)		(2.1)		(1.1)		(0.5)
Actuarial Loss			21.1		8.2		2.6		1.7		5.0		1.9		0.9		0.3
Prior Service Cost			2.4		1.0		0.5		0.2		-		-		-		-
Net Transition Obligation Cost			-		-		-		-		2.9		1.5		0.6		0.3
Total - Net Periodic Expense		$	33.6	$	8.0	$	7.2	$	1.2	$	11.1	$	4.5	$	2.1	$	0.8
Related Intercompany
	Allocations		N/A	$	8.7	$	1.9	$	1.6		N/A	$	2.0	$	0.5	$	0.9
Amount Capitalized		$	8.0	$	4.4	$	2.0	$	0.7	$	-	$	-	$	-	$	-

		For the Three Months Ended June 30, 2010
		Pension								PBOP
(Millions of Dollars)		NU		CL&P		PSNH		WMECO		NU		CL&P		PSNH		WMECO
Service Cost		$	12.4	$	4.3	$	2.4	$	0.8	$	2.0	$	0.7	$	0.4	$	0.2
Interest Cost			38.3		13.0		6.1		2.6		6.7		2.6		1.3		0.6
Expected Return on Plan Assets			(45.7)		(21.4)		(3.6)		(4.8)		(5.5)		(2.2)		(1.1)		(0.5)
Actuarial Loss			13.8		5.4		1.8		1.1		4.4		1.6		0.7		0.2
Prior Service Cost			2.5		1.0		0.4		0.3		-		-		-		-
Net Transition Obligation Cost			-		-		-		-		2.9		1.5		0.7		0.3
Total - Net Periodic Expense		$	21.3	$	2.3	$	7.1	$	-	$	10.5	$	4.2	$	2.0	$	0.8
Related Intercompany
	Allocations		N/A	$	6.5	$	1.5	$	1.2		N/A	$	2.1	$	0.5	$	0.4
Amount Capitalized		$	4.4	$	1.8	$	2.1	$	0.1	$	-	$	-	$	-	$	-

		For the Six Months Ended June 30, 2011
		Pension								PBOP
(Millions of Dollars)		NU		CL&P		PSNH		WMECO		NU		CL&P		PSNH		WMECO
Service Cost		$	27.7	$	9.7	$	5.3	$	2.0	$	4.5	$	1.4	$	1.0	$	0.3
Interest Cost			76.5		26.1		12.3		5.4		12.9		5.0		2.4		1.1
Expected Return on Plan Assets			(85.3)		(38.3)		(10.0)		(8.8)		(10.8)		(4.3)		(2.2)		(1.0)
Actuarial Loss			42.1		16.6		5.2		3.4		9.5		3.6		1.6		0.6
Prior Service Cost/(Credit)			4.8		2.0		1.0		0.4		(0.1)		-		-		-
Net Transition Obligation Cost			-		-		-		-		5.8		3.1		1.2		0.6
Total - Net Periodic Expense		$	65.8	$	16.1	$	13.8	$	2.4	$	21.8	$	8.8	$	4.0	$	1.6
Related Intercompany
	Allocations		N/A	$	16.5	$	3.8	$	3.0		N/A	$	4.1	$	1.0	$	1.7
Amount Capitalized		$	15.7	$	8.9	$	3.9	$	1.4	$	-	$	-	$	-	$	-

		For the Six Months Ended June 30, 2010
		Pension								PBOP
(Millions of Dollars)		NU		CL&P		PSNH		WMECO		NU		CL&P		PSNH		WMECO
Service Cost		$	25.5	$	8.8	$	4.9	$	1.7	$	4.3	$	1.3	$	0.9	$	0.3
Interest Cost			76.3		26.0		12.1		5.3		13.4		5.2		2.5		1.1
Expected Return on Plan Assets			(91.3)		(42.9)		(7.2)		(9.7)		(10.8)		(4.3)		(2.1)		(1.0)
Actuarial Loss			26.8		10.6		3.6		2.2		8.3		3.2		1.4		0.5
Prior Service Cost/(Credit)			4.9		2.0		0.7		0.4		(0.1)		-		-		-
Net Transition Obligation Cost			-		-		-		-		5.7		3.1		1.2		0.6
Total - Net Periodic
	Expense/(Income)	$	42.2	$	4.5	$	14.1	$	(0.1)	$	20.8	$	8.5	$	3.9	$	1.5
Related Intercompany
	Allocations		N/A	$	12.6	$	3.0	$	2.3		N/A	$	4.0	$	1.0	$	0.7
Amount Capitalized		$	8.8	$	3.5	$	4.1	$	0.3	$	-	$	-	$	-	$	-

Contributions: Currently NU's policy is to annually fund the Pension Plan in an amount at least equal to an amount that will satisfy the requirements of ERISA, as amended by the PPA of 2006, and the Internal Revenue Code. Due to an underfunded balance as of January 1, 2010, NU is required to make an additional contribution to the Pension Plan of approximately $145 million in 2011,approximately $19 million of which was made in the second quarter of 2011 ($15 million of which was contributed by PSNH). The required contributionis being made in installments,which began in April 2011, to meet the current minimum funding requirements established by the PPA of 2006. Additional contributions totalling $390 million are expected to be made from 2012 through 2015, subject to a variety of factors, including the performance of existing plan assets, valuation of the plan's liabilities and changes in long-term discount rates.