INCOME TAXES

3 Months Ended

Mar. 31, 2013

Notes To Consolidated Financial Statements [Abstract]

Income Tax Disclosure [Text Block]

8.INCOME TAXES

Tax Positions: InMarch 2013, NU received a Final Determination from the Connecticut Department of Revenue Services (DRS) Appellate Division that concluded its audit of NU's Connecticut income tax returns for the years 2005 through 2008, bringing closure to, and effective settlement of, issues concerning the deductibility of expenses and credits through 2008. The DRS Determination resulted in total NU and CL&P after-tax benefits of $13.6 million and $6.9 million, respectively, recorded in the first quarter of 2013 that included a reduction in NU and CL&P pre-tax interest expense of $8.7 million and $4 million, or $5.2 million and $2.4 million after-tax, respectively. Further, the income tax expense impact resulted in a tax benefit to NU and CL&P of $8.4 million and $4.5 million after-tax, respectively. Management estimates that resolution of this audit decreases NU's and CL&P's unrecognized tax benefits by approximately $49.8 million and $39.4 million, respectively, that was largely offset by NU's and CL&P's valuation allowance and other tax impacts of $44.9 million and $36.5 million, respectively.

NU currently has open tax years. It is reasonably possible that at least one of these open tax years could be resolved within the next twelve months. Management estimates that the potential resolutions could result in a $1 million to $2 million decrease, net of any related valuation allowance,in unrecognized tax benefits for NU.