XML 123 R7.htm IDEA: XBRL DOCUMENT v2.4.0.8
REGULATORY ACCOUNTING
 6 Months Ended
Jun. 30, 2013
Notes To Consolidated Financial Statements [Abstract]  
Public Utilities Disclosure [Text Block]

2.       REGULATORY ACCOUNTING

 

The rates charged to the customers of NU's Regulated companies are designed to collect each company's costs to provide service, including a return on investment. Therefore, the accounting policies of the Regulated companies reflect the application of accounting guidance for entities with rate-regulated operations and reflect the effects of the rate-making process.

 

Management believes it is probable that each of the Regulated companies will recover their respective investments in long-lived assets, including regulatory assets. If management were to determine that it could no longer apply the accounting guidance applicable to rate-regulated enterprises to any of the Regulated companies' operations, or that management could not conclude it is probable that costs would be recovered from customers in future rates, the costs would be charged to net income in the period in which the determination is made.

 

Regulatory Assets: The components of regulatory assets are as follows:

 As of June 30, 2013 As of December 31, 2012
(Millions of Dollars)NU NU
Benefit Costs$ 2,256.7 $ 2,452.1
Regulatory Assets Offsetting Derivative Liabilities  793.3   885.6
Goodwill   527.5   537.6
Storm Restoration Costs  636.3   547.7
Income Taxes, Net  529.8   516.2
Securitized Assets  97.1   232.6
Contractual Obligations  126.4   217.6
Buy Out Agreements for Power Contracts   81.7   92.9
Regulatory Tracker Deferrals  194.5   190.1
Asset Retirement Obligations   91.5   88.8
Other Regulatory Assets  59.5   76.2
Total Regulatory Assets  5,394.3   5,837.4
Less: Current Portion  577.0   705.0
Total Long-Term Regulatory Assets$ 4,817.3 $ 5,132.4

  As of June 30, 2013 As of December 31, 2012
     NSTAR          NSTAR      
(Millions of Dollars)CL&P Electric PSNH WMECO CL&P Electric PSNH WMECO
Benefit Costs$ 525.6 $ 783.7 $ 205.9 $ 107.1 $ 563.2 $ 781.2 $ 223.7 $ 116.0
Regulatory Assets Offsetting                        
 Derivative Liabilities  775.8   13.1   1.5   0.7   866.2   14.9   -   3.0
Goodwill  -   452.9   -   -   -   461.5   -   -
Storm Restoration Costs  445.7   119.1   30.1   41.4   413.9   55.8   34.5   43.5
Income Taxes, Net  379.8   46.2   36.6   31.4   367.5   47.1   36.2   31.0
Securitized Assets  -   97.1   -   -   -   205.1   19.7   7.8
Contractual Obligations  20.1   6.7   -   4.8   64.0   22.8   -   14.9
Buy Out Agreements for Power Contracts   -   75.5   6.2   -   -   85.9   7.0   -
Regulatory Tracker Deferrals  21.5   100.8   44.0   26.4   12.2   71.4   49.3   31.9
Asset Retirement Obligations   30.5   30.2   14.5   3.6   29.4   29.4   14.2   3.5
Other Regulatory Assets  29.8   7.4   28.4   21.8   27.9   16.9   29.4   12.6
Total Regulatory Assets  2,228.8   1,732.7   367.2   237.2   2,344.3   1,792.0   414.0   264.2
Less: Current Portion  173.5   270.8   55.8   45.0   185.9   347.1   62.9   42.4
Total Long-Term Regulatory Assets$ 2,055.3 $ 1,461.9 $ 311.4 $ 192.2 $ 2,158.4 $ 1,444.9 $ 351.1 $ 221.8

Storm Restoration Costs: The storm restoration cost deferrals relate to costs incurred at CL&P, NSTAR Electric, PSNH and WMECO that each company expects to collect from customers. The storm restoration cost regulatory asset balance at CL&P, NSTAR Electric and WMECO primarily reflects costs incurred for Tropical Storm Irene, the October 2011 snowstorm, Hurricane Sandy and the February 2013 blizzard. For PSNH, costs incurred associated with these storms are recorded in Other Long-Term Assets. Management believes the storm restoration costs meet the criteria for specific cost recovery in Connecticut, New Hampshire and Massachusetts and, as a result, are probable of recovery. Each operating company will seek recovery of these deferred storm restoration costs through its applicable regulatory recovery process.

 

Regulatory Costs in Other Long-Term Assets: The Regulated companies had $81.8 million ($3.7 million for CL&P, $27.3 million for NSTAR Electric, $37.4 million for PSNH, and $7.4 million for WMECO) and $69.9 million ($3.9 million for CL&P, $25.4 million for NSTAR Electric, $35.7 million for PSNH, and $1.4 million for WMECO) of additional regulatory costs as of June 30, 2013 and December 31, 2012, respectively, which were included in Other Long-Term Assets on the balance sheets. These amounts represent incurred costs that have not yet been approved for recovery by the applicable regulatory agency. Management believes it is probable that these costs will ultimately be approved and recovered from customers.

 

Regulatory Liabilities: The components of regulatory liabilities are as follows:

 As of June 30, 2013 As of December 31, 2012
(Millions of Dollars)NU NU
Cost of Removal$ 437.1 $ 440.8
Regulatory Tracker Deferrals  164.9   95.1
AFUDC - Transmission  68.5   70.0
Other Regulatory Liabilities  57.6   68.4
Total Regulatory Liabilities  728.1   674.3
Less: Current Portion  216.4   134.1
Total Long-Term Regulatory Liabilities$ 511.7 $ 540.2

  As of June 30, 2013 As of December 31, 2012
    NSTAR       NSTAR    
(Millions of Dollars)CL&P Electric PSNH WMECO CL&P Electric PSNH WMECO
Cost of Removal$ 34.7 $ 246.0 $ 50.3 $ - $ 44.2 $ 240.3 $ 51.2 $ -
Regulatory Tracker Deferrals  66.0   42.9   17.6   19.2   39.1   14.4   20.4   19.0
AFUDC - Transmission  55.2   4.0   -   9.3   56.6   4.1   -   9.3
Other Regulatory Liabilities  8.0   31.4   5.0   2.5   16.5   32.9   3.8   2.4
Total Regulatory Liabilities  163.9   324.3   72.9   31.0   156.4   291.7   75.4   30.7
Less: Current Portion  64.0   74.4   21.9   19.9   32.1   47.5   23.0   21.0
Total Long-Term Regulatory Liabilities$ 99.9 $ 249.9 $ 51.0 $ 11.1 $ 124.3 $ 244.2 $ 52.4 $ 9.7