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PROPERTY, PLANT AND ACCUMULATED DEPRECIATION
 12 Months Ended
Dec. 31, 2015
Notes To Consolidated Financial Statements [Abstract]  
Property Plant And Equipment Disclosure [Text Block]

3.       PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION

 

Utility property, plant and equipment is recorded at original cost. Original cost includes materials, labor, construction overhead and AFUDC for regulated property. The cost of repairs and maintenance, including planned major maintenance activities, is charged to Operating Expenses as incurred.

 

The following tables summarize the investments in utility property, plant and equipment by asset category:

 

EversourceAs of December 31,
(Millions of Dollars)2015 2014
Distribution - Electric$ 13,054.8 $ 12,495.2
Distribution - Natural Gas  2,727.2   2,595.4
Transmission - Electric  7,691.9   6,930.7
Generation  1,194.1   1,170.9
Electric and Natural Gas Utility  24,668.0   23,192.2
Other (1)  558.6   551.3
Property, Plant and Equipment, Gross  25,226.6   23,743.5
Less: Accumulated Depreciation     
 Electric and Natural Gas Utility   (6,141.1)   (5,777.8)
 Other  (255.6)   (231.8)
Total Accumulated Depreciation  (6,396.7)   (6,009.6)
Property, Plant and Equipment, Net  18,829.9   17,733.9
Construction Work in Progress  1,062.5   913.1
Total Property, Plant and Equipment, Net$ 19,892.4 $ 18,647.0

(1)       These assets are primarily comprised of building improvements, computer software, hardware and equipment at Eversource Service.

 As of December 31,
 2015 2014
    NSTAR          NSTAR      
(Millions of Dollars)CL&P Electric PSNH WMECO CL&P Electric PSNH WMECO
Distribution$ 5,377.2 $ 5,100.5 $ 1,804.8 $ 812.3 $ 5,158.8 $ 4,895.5 $ 1,696.7 $ 784.2
Transmission  3,618.0   2,131.3   928.2   964.9   3,274.0   1,928.5   789.7   891.0
Generation  -   -   1,158.1   36.0   -   -   1,136.5   34.4
Property, Plant and Equipment, Gross  8,995.2   7,231.8   3,891.1   1,813.2   8,432.8   6,824.0   3,622.9   1,709.6
Less: Accumulated Depreciation  (2,041.9)   (1,886.8)   (1,171.0)   (307.0)   (1,928.0)   (1,761.4)   (1,090.0)   (297.4)
Property, Plant and Equipment, Net  6,953.3   5,345.0   2,720.1   1,506.2   6,504.8   5,062.6   2,532.9   1,412.2
Construction Work in Progress  203.5   310.5   135.3   69.1   304.9   272.8   102.9   49.1
Total Property, Plant and Equipment, Net $ 7,156.8 $ 5,655.5 $ 2,855.4 $ 1,575.3 $ 6,809.7 $ 5,335.4 $ 2,635.8 $ 1,461.3

As of December 31, 2015, PSNH had $1.2 billion in gross generation utility plant assets and related Accumulated Depreciation of $522.4 million. These generation assets are the subject of a divestiture agreement entered into on June 10, 2015 between Eversource, PSNH and key New Hampshire officials whereby, among other resolutions, PSNH has agreed to divest these generation assets upon NHPUC approval. Upon completion of the divestiture process, remaining costs not recovered by the sale of these assets (stranded costs) will be recovered via bonds that will be secured by a non-bypassable charge or other recovery mechanisms in rates billed to PSNH's customers. See Note 11H, “Commitments and Contingencies – PSNH Generation Restructuring,” for further information.

 

Depreciation of utility assets is calculated on a straight-line basis using composite rates based on the estimated remaining useful lives of the various classes of property (estimated useful life for PSNH distribution). The composite rates, which are subject to approval by the appropriate state regulatory agency, include a cost of removal component (other than PSNH Generation), which is collected from customers over the lives of the plant assets and is recognized as a regulatory liability. Depreciation rates are applied to property from the time it is placed in service.

 

Upon retirement from service, the cost of the utility asset is charged to the accumulated provision for depreciation. The actual incurred removal costs are applied against the related regulatory liability.

 

The depreciation rates for the various classes of utility property, plant and equipment aggregate to composite rates as follows:

(Percent) 2015  2014  2013 
Eversource  2.9%  3.0%  2.8%
CL&P  2.7%  2.7%  2.5%
NSTAR Electric  3.0%  3.0%  2.9%
PSNH  3.2%  3.0%  3.0%
WMECO  2.7%  3.3%  2.9%

The following table summarizes average remaining useful lives of depreciable assets:
                
  As of December 31, 2015
(Years)Eversource CL&P NSTAR Electric PSNH WMECO
Distribution  34.8   37.3   31.9   31.3   30.5
Transmission  41.6   38.7   43.8   41.6   50.0
Generation  30.7   -   -   30.9   25.0
Other  14.1   -   -   -   -