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DIVIDEND RESTRICTIONS
12 Months Ended
Dec. 31, 2012
Notes To Consolidated Financial Statements [Abstract]  
Schedule of Dividend Payment Restrictions [Table Text Block]

16.       DIVIDEND RESTRICTIONS

 

NU parent's ability to pay dividends may be affected by certain state statutes, the ability of its subsidiaries to pay common dividends and the leverage restriction tied to its consolidated total debt to total capitalization ratio requirement in its revolving credit agreement.

 

CL&P, NSTAR Electric, PSNH and WMECO are subject to Section 305 of the Federal Power Act that makes it unlawful for a public utility to make or pay a dividend from any funds "properly included in its capital account." Management believes that this Federal Power Act restriction, as applied to CL&P, NSTAR Electric, PSNH and WMECO, would not be construed or applied by the FERC to prohibit the payment of dividends for lawful and legitimate business purposes from retained earnings. In addition, certain state statutes may impose additional limitations on such companies and on Yankee Gas and NSTAR Gas. Such state law restrictions do not restrict payment of dividends from retained earnings or net income. CL&P, NSTAR Electric, PSNH, WMECO, Yankee Gas and NSTAR Gas also have revolving credit agreements that impose leverage restrictions including consolidated total debt to total capitalization ratio requirements. The Retained Earnings balances subject to these leverage restrictions are $1.803 billion for NU, $839.6 million for CL&P, $1.210 billion for NSTAR Electric, $395.1 million for PSNH and $160.6 million for WMECO as of December 31, 2012. PSNH is further required to reserve an additional amount under its FERC hydroelectric license conditions. As of December 31, 2012, approximately $12.3 million of PSNH's Retained Earnings is subject to restriction under its FERC hydroelectric license conditions. As of December 31, 2012, NU, CL&P, NSTAR Electric, PSNH, WMECO, Yankee Gas and NSTAR Gas were in compliance with all such provisions of its credit agreements that may restrict the payment of dividends