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LONG-TERM DEBT

12 Months Ended

Dec. 31, 2012

Notes To Consolidated Financial Statements [Abstract]

9. LONG-TERM DEBT

Details of long-term debt outstanding for NU, including CL&P, NSTAR Electric, PSNH and WMECO are as follows:


CL&P		As of December 31,
(Millions of Dollars)		2012		2011
First Mortgage Bonds:
	7.875% 1994 Series D due 2024	$	139.8	$	139.8
	4.800% 2004 Series A due 2014		150.0		150.0
	5.750% 2004 Series B due 2034		130.0		130.0
	5.000% 2005 Series A due 2015		100.0		100.0
	5.625% 2005 Series B due 2035		100.0		100.0
	6.350% 2006 Series A due 2036		250.0		250.0
	5.375% 2007 Series A due 2017		150.0		150.0
	5.750% 2007 Series B due 2037		150.0		150.0
	5.750% 2007 Series C due 2017		100.0		100.0
	6.375% 2007 Series D due 2037		100.0		100.0
	5.650% 2008 Series A due 2018		300.0		300.0
	5.500% 2009 Series A due 2019		250.0		250.0
Total First Mortgage Bonds			1,919.8		1,919.8
Pollution Control Notes:
	5.85%-5.95% Fixed Rate Tax Exempt due 2016-2028⁽¹⁾		-		116.4
	4.375% Fixed Rate Tax Exempt due 2028		120.5		120.5
	1.25% Fixed Rate Tax Exempt due 2028⁽²⁾		125.0		125.0
	1.55% Fixed Rate Tax Exempt due 2031⁽³⁾		62.0		62.0
Total Pollution Control Notes			307.5		423.9
Total First Mortgage Bonds and Pollution Control Notes			2,227.3		2,343.7
Fees and Interest due for Spent Nuclear Fuel Disposal Costs			244.3		244.1
CL&P Commercial Paper and Revolver Borrowings⁽⁴⁾			394.8		-
Less Amounts due Within One Year⁽²⁾			(125.0)		(62.0)
Unamortized Premiums and Discounts, Net			(3.6)		(4.0)
CL&P Long-Term Debt		$	2,737.8	$	2,521.8

NSTAR Electric		As of December 31,
(Millions of Dollars)		2012		2011⁽⁵⁾
Debentures:
	4.875% due 2012⁽⁶⁾	$	-	$	400.0
	4.875% due 2014		300.0		300.0
	2.375% due 2022⁽⁶⁾		400.0		-
	5.625% due 2017		400.0		400.0
	5.75% due 2036		200.0		200.0
	5.50% due 2040		300.0		300.0
Total Debentures			1,600.0		1,600.0
Bonds:
	7.375% Tax Exempt Sewage Facility Revenue Bonds, due 2015		8.0		8.7
Less Amounts due Within One Year			(1.7)		(400.7)
Unamortized Premiums and Discounts, Net			(5.4)		(4.7)
NSTAR Electric Long-Term Debt		$	1,600.9	$	1,203.3

PSNH		As of December 31,
(Millions of Dollars)		2012		2011
First Mortgage Bonds:
	5.25% 2004 Series L due 2014	$	50.0	$	50.0
	5.60% 2005 Series M due 2035		50.0		50.0
	6.15% 2007 Series N due 2017		70.0		70.0
	6.00% 2008 Series O due 2018		110.0		110.0
	4.50% 2009 Series P due 2019		150.0		150.0
	4.05% 2011 Series Q due 2021		122.0		122.0
	3.20% 2011 Series R due 2021		160.0		160.0
Total First Mortgage Bonds			712.0		712.0
Pollution Control Revenue Bonds:
	4.75% - 5.45% Tax Exempt Series B and C due 2021		198.2		198.2
	Adjustable Rate Series A due 2021		89.3		89.3
Total Pollution Control Revenue Bonds			287.5		287.5
Unamortized Premiums and Discounts, Net			(1.6)		(1.8)
PSNH Long-Term Debt		$	997.9	$	997.7


WMECO		As of December 31,
(Millions of Dollars)		2012		2011
Pollution Control Revenue Bonds and Other Notes:
	5.85% Tax Exempt PCRBs 1993 Series A, due 2028⁽⁷⁾	$	-	$	53.8
	5.00% Senior Notes Series A, due 2013		55.0		55.0
	5.90% Senior Notes Series B, due 2034		50.0		50.0
	5.24% Senior Notes Series C, due 2015		50.0		50.0
	6.70% Senior Notes Series D, due 2037		40.0		40.0
	5.10% Senior Notes Series E, due 2020		95.0		95.0
	3.50% Senior Notes Series F, due 2021⁽⁸⁾		250.0		100.0
Total Pollution Control Revenue Bonds and Other Notes			540.0		443.8
Fees and Interest due for Spent Nuclear Fuel Disposal Costs			57.3		57.3
Less Amounts due Within One Year			(55.0)		-
Unamortized Premiums and Discounts, Net			8.0		(1.6)
WMECO Long-Term Debt		$	550.3	$	499.5

OTHER		As of December 31,
(Millions of Dollars)		2012			2011
Yankee Gas - First Mortgage Bonds:
	7.19% Series E due 2012	$	-	$	4.3
	8.48% Series B due 2022		20.0		20.0
	4.80% Series G due 2014		75.0		75.0
	5.26% Series H due 2019		50.0		50.0
	5.35% Series I due 2035		50.0		50.0
	6.90% Series J due 2018		100.0		100.0
	4.87% Series K due 2020		50.0		50.0
Total First Mortgage Bonds			345.0		349.3
Less Amounts due Within One Year			-		(4.3)
Unamortized Premium			0.8		0.9
Yankee Gas Long-Term Debt			345.8		345.9

NSTAR Gas - First Mortgage Bonds:
	9.95% Series J due 2020		25.0		N/A
	7.11% Series K due 2033		35.0		N/A
	7.04% Series M due 2017		25.0		N/A
	4.46% Series N due 2020		125.0		N/A
NSTAR Gas Long-Term Debt			210.0		N/A

Other - Notes and Debentures:
	7.25% Senior Notes Series A due 2012 (NU Parent)⁽⁹⁾		-		263.0
	5.65% Senior Notes Series C due 2013 (NU Parent)		250.0		250.0
	Variable Rate Senior Notes Series D due 2013 (NU Parent)⁽⁹⁾		300.0		-
	4.50% Debentures due 2019 (NSTAR LLC)		350.0		N/A
	Spent Nuclear Fuel Obligation (CYAPC)		179.3		N/A
Total Other Long-Term Debt			1,079.3		513.0
Fair Value Adjustment⁽¹⁰⁾			259.9		2.3
Less Amounts due Within One Year			(550.0)		(263.0)
Less: Fair Value Adjustment - Current Portion⁽¹⁰⁾			(31.7)		(2.3)
Total NU Long-Term Debt		$	7,200.2	$	4,614.9

On October 1, 2012, CL&P redeemed at par four different series of tax-exempt PCRBs totaling $116.4 million. The PCRBs had maturity dates ranging from 2016 through 2028 and coupon rates of 5.85 percent through 5.95 percent.
The $125 million of tax-exempt PCRBs were issued with an initial fixed rate term period ending on September 2, 2013, and are subject to mandatory tender for purchase on September 3, 2013, at which time CL&P expects to remarket the PCRBs.
On April 2, 2012, CL&P remarketed $62 million of tax-exempt PCRBs for a three-year period. The PCRBs, which mature on May 1, 2031, carry a coupon rate of 1.55 percent during the current three-year fixed rate period and are subject to mandatory tender for purchase on April 1, 2015.
On January 15, 2013, CL&P issued $400 million of 2.5 percent Series A First and Refunding Mortgage Bonds with a maturity date of January 15, 2023. The proceeds, net of issuance expenses, were used to repay the amounts outstanding under the CL&P revolver and the NU commercial paper program. As a result, these amounts have been classified as Long-Term Debt as of December 31, 2012.
NSTAR Electric amounts are not included in NU consolidated as of December 31, 2011.
On October 15, 2012, NSTAR Electric issued at a discount $400 million of 2.375 percent Debentures at a yield of 2.406 percent that will mature on October 15, 2022. The proceeds, net of issuance costs, were used to pay $400 million of 4.875 percent Debentures that matured on October 15, 2012.
On October 1, 2012, WMECO redeemed at par $53.8 million of tax-exempt PCRBs. The PCRBs had a maturity date of 2028 and a coupon of 5.85 percent.
On October 4, 2012, WMECO issued at a premium $150 million of senior unsecured notes at a yield of 2.673 percent that will mature on September 15, 2021. The senior notes are part of the same series of WMECO's existing 3.5 percent coupon Series F Senior Notes that were initially issued in September 2011. As a result, the aggregate principal amount of WMECO's outstanding Series F Senior Notes totaled $250 million.
On March 22, 2012, NU parent issued $300 million of floating rate Series D Senior Notes with a maturity date of September 20, 2013. The notes have a coupon rate based on the three-month LIBOR rate plus a credit spread of 0.75 percent and will reset quarterly. The notes had an interest rate of 1.059 percent as of December 31, 2012. The proceeds, net of issuance expenses, were used to repay at maturity the NU parent $263 million Series A Senior Notes that matured on April 1, 2012, to repay short-term borrowings outstanding under the NU parent Credit Agreement and for other general corporate purposes.
As of December 31, 2012, amount relates to the purchase price adjustment required to record the NSTAR long-term debt issuances at fair value on the date of the merger. As of December 31, 2011, amount related to a fixed to floating interest rate swap on the $263 million NU parent note that matured on April 1, 2012. The change in fair value of the interest component of the debt was recorded as an adjustment to Current Portion - Long Term Debt as of December 31, 2011 with an equal and offsetting adjustment to Current Derivative Assets.

Long-term debt maturities and cash sinking fund requirements on debt outstanding as of December 31, 2012 for the years 2013 through 2017 and thereafter, are shown below. These amounts exclude fees and interest due for spent nuclear fuel disposal costs, net unamortized premiums and discounts, and other fair value adjustments as of December 31, 2012:

(Millions of Dollars)	NU		CL&P		NSTAR Electric		PSNH		WMECO
2013	$	731.7	$	125.0	$	1.7	$	-	$	55.0
2014		576.6		150.0		301.7		50.0		-
2015		216.7		162.0		4.7		-		50.0
2016		-		-		-		-		-
2017		745.0		250.0		400.0		70.0		-
Thereafter		4,559.8		1,540.3		899.9		879.5		435.0
Total	$	6,829.8	$	2,227.3	$	1,608.0	$	999.5	$	540.0

The utility plant of CL&P, PSNH, Yankee Gas and NSTAR Gas is subject to the lien of each company's respective first mortgage bond indenture. NSTAR Electric, WMECO, NU Parent and NSTAR LLC debt is unsecured.

The PSNH Series A and Series C tax-exempt bonds are currently callable at 100 percent and 101 percent of par, respectively. The PSNH Series B tax-exempt bond will become callable in June 2013. CL&P's $125 million and $62 million tax-exempt PCRBs, which are subject to mandatory tender for purchase on September 3, 2013 and April 1, 2015, respectively, cannot be redeemed prior to their respective tender dates. CL&P's $120.5 million tax-exempt PCRBs will be subject to redemption at par on or after September 1, 2021. All other long-term debt securities are subject to make-whole provisions.

As of December 31, 2012, CL&P had $307.5 million of tax-exempt PCRBs outstanding. CL&P's obligation to repay each series of PCRBs is secured by first mortgage bonds. Each such series of first mortgage bonds contains similar terms and provisions as the applicable series of PCRBs. If CL&P failed to meet its obligations under the PCRBs, then these first mortgage bonds would become outstanding.

As of December 31, 2012, PSNH had $287.5 million in PCRBs outstanding. PSNH's obligation to repay each series of PCRBs is secured by first mortgage bonds and bond insurance. Each such series of first mortgage bonds contains similar terms and provisions as the applicable series of PCRBs. If PSNH failed to meet its obligations under the PCRBs, then these first mortgage bonds would become outstanding. The 2001 Series A PCRBs, in the aggregate principal amount of $89.3 million, bears interest at a rate that is periodically set pursuant to auctions. PSNH is not obligated to purchase these PCRBs, which mature in 2021, from the remarketing agent. The weighted average effective interest rate on PSNH's Series A variable-rate PCRBs was 0.20 percent in 2012 and 0.21 percent in 2011.

NU's, including CL&P, NSTAR Electric, PSNH and WMECO, long-term debt agreements provide that NU and certain of its subsidiaries must comply with certain covenants as are customarily included in such agreements, including a minimum equity requirement for NSTAR Gas. Under the minimum equity requirement, the outstanding long-term debt of NSTAR Gas must not exceed equity. NU and these subsidiaries were in compliance with these covenants as of December 31, 2012 and 2011.

Yankee Gas has certain long-term debt agreements that contain cross-default provisions applicable to all of Yankee Gas' outstanding first mortgage bond series. The cross-default provisions on Yankee Gas' Series B Bonds would be triggered if Yankee Gas were to default on a payment due on indebtedness in excess of $2 million. The cross-default provisions on all other series of Yankee Gas' first mortgage bonds would be triggered if Yankee Gas were to default in a payment due on indebtedness in excess of $10 million. No other debt issuances contain cross-default provisions as of December 31, 2012.

Spent Nuclear Fuel Obligation: Under the Nuclear Waste Policy Act of 1982, CL&P and WMECO must pay the DOE for the costs of disposal of spent nuclear fuel and high-level radioactive waste for the period prior to the sale of their ownership shares in the Millstone nuclear power stations.

The DOE is responsible for the selection and development of repositories for, and the disposal of, spent nuclear fuel and high-level radioactive waste. For nuclear fuel used to generate electricity prior to April 7, 1983 (Prior Period Spent Nuclear Fuel) for CL&P and WMECO, an accrual has been recorded for the full liability, and payment must be made by CL&P and WMECO to the DOE prior to the first delivery of spent fuel to the DOE. After the sale of Millstone, CL&P and WMECO remained responsible for their share of the disposal costs associated with the Prior Period Spent Nuclear Fuel. Until such payment to the DOE is made, the outstanding liability will continue to accrue interest at the 3-month Treasury bill yield rate. In addition, as a result of consolidating CYAPC, NU has consolidated $179.3 million in additional spent nuclear fuel obligations, including interest, as of December 31, 2012. Fees due to the DOE for the disposal of CL&P's and WMECO's Prior Period Spent Nuclear Fuel and CYAPC's and YAEC's spent nuclear fuel obligation include accumulated interest costs of $350 million and $219.3 million for NU ($177.8 million and $177.6 million for CL&P and $41.7 million and $41.7 million for WMECO) as of December 31, 2012 and 2011, respectively.

For further information, see Note 1B, “Summary of Significant Accounting Policies – Basis of Presentation,” to the consolidated financial statements.

WMECO maintains a trust that holds marketable securities to fund amounts due to the DOE for the disposal of WMECO's Prior Period Spent Nuclear Fuel. CYAPC also maintain trusts to fund amounts due to the DOE for the disposal of spent nuclear fuel. For further information on these trusts, see Note 6, "Marketable Securities," to the consolidated financial statements.