PSNH GENERATION ASSET SALE

3 Months Ended

Mar. 31, 2017

Regulated Operations [Abstract]

PSNH GENERATION ASSET SALE

PSNH GENERATION ASSET SALE

On June 10, 2015, Eversource and PSNH entered into the 2015 Public Service Company of New Hampshire Restructuring and Rate Stabilization Agreement (the "Agreement") with the New Hampshire Office of Energy and Planning, certain members of the NHPUC staff, the Office of Consumer Advocate, two State Senators, and several other parties.  Under the terms of the Agreement, PSNH agreed to divest its generation assets, subject to NHPUC approval.  The Agreement provided for a resolution of issues pertaining to PSNH's generation assets in pending regulatory proceedings before the NHPUC.  The Agreement provided for the Clean Air Project prudence proceeding to be resolved and all remaining Clean Air Project costs to be included in rates effective January 1, 2016.  As part of the Agreement, PSNH agreed to forego recovery of $25 million of the equity return related to the Clean Air Project.  In addition, PSNH will not seek a general distribution rate increase effective before July 1, 2017 and will contribute $5 million to create a clean energy fund, which will not be recoverable from its customers.  

On July 1, 2016, the NHPUC approved the Agreement in an order that, among other things, instructs PSNH to begin the process of divesting its generation assets.  The NHPUC selected an auction adviser to assist with the divestiture, and the final plan and auction process were approved by the NHPUC in November 2016.  An intervening appeal alleging that the auction process and schedule were unreasonable was rejected by the New Hampshire Supreme Court in February 2017. In late March 2017, the formal divestiture process began. We continue to believe the assets will be sold by the end of 2017.

The sales price of the generation assets could be less than the carrying value, but the Company believes that full recovery of PSNH's generation assets is probable through a combination of cash flows during the remaining operating period, sales proceeds upon divestiture, and recovery of stranded costs via bonds that will be secured by a non-bypassable charge or through recoveries in future rates billed to PSNH's customers.

As of March 31, 2017, PSNH's generation assets were as follows:

(Millions of Dollars)
Gross Plant	$	1,192.6
Accumulated Depreciation	(564.1		)
Net Plant	628.5
Fuel	98.3
Materials and Supplies	48.5
Emission Allowances	19.7
Total Generation Assets	$	795.0

As of March 31, 2017, current and long-term liabilities associated with PSNH's generation assets included Accounts Payable of $30.1 million, Other Current Liabilities of $21.7 million, AROs of $20.3 million, and Accrued Pension, SERP and PBOP of $23.7 million.