8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549-1004

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 5, 2007

Commission File Number	Registrant; State of Incorporation Address; and Telephone Number	I.R.S. Employer Identification No.
1-5324	NORTHEAST UTILITIES	04-2147929
	(a Massachusetts voluntary association)
	One Federal Street, Building 111-4
	Springfield, Massachusetts 01105
	Telephone: (413) 785-5871
0-00404	THE CONNECTICUT LIGHT AND POWER COMPANY	06-0303850
	(a Connecticut corporation)
	107 Selden Street
	Berlin, Connecticut 06037-1616
	Telephone: (860) 665-5000
1-6392	PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE	02-0181050
	(a New Hampshire corporation)
	Energy Park
	780 North Commercial Street
	Manchester, New Hampshire 03101-1134
	Telephone: (603) 669-4000
0-7624	WESTERN MASSACHUSETTS ELECTRIC COMPANY	04-1961130
	(a Massachusetts corporation)
	One Federal Street, Building 111-4
	Springfield, Massachusetts 01105
	Telephone: (413) 785-5871

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 - Financial Information

Item 2.02 Results of Operations and Financial Condition.

On November 5, 2007, Northeast Utilities (“NU” or the “company”) issued a news release announcing its unaudited results of operations for the third quarter and year to date 2007 and related financial information for certain of its subsidiaries for the same period. In addition, the company provided updated consolidated earnings guidance for 2007, consolidated earnings guidance for 2008 and new capital investment projections. A copy of the news release and related financial reports are attached as Exhibits 99.1 and 99.2, respectively, and are incorporated herein by reference thereto.

The information contained in this Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by Northeast Utilities, The Connecticut Light and Power Company, Public Service Company of New Hampshire or Western Massachusetts Electric Company under the Securities Act of 1933, as amended, unless specified otherwise.

Section 7 - Regulation FD

Item 7.01 Regulation FD Disclosure

On November 5, 2007, NU is giving a slideshow presentation to financial analysts at the Edison Electric Institute Financial Conference in Orlando, Florida, which is being simultaneously webcast to the public. The slides are attached hereto as Exhibit 99.3, incorporated in this Item 7 by reference thereto, and are furnished pursuant to Regulation FD.

The information contained in this Item 7.01, including Exhibit 99.3, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by Northeast Utilities, The Connecticut Light and Power Company, Public Service Company of New Hampshire or Western Massachusetts Electric Company under the Securities Act of 1933, as amended, unless specified otherwise.

Section 9 – Financial Statements and Exhibits

Item 9.01 – Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number	Description
Exhibit 99.1	News Release issued by Northeast Utilities on November 5, 2007.
Exhibit 99.2	Financial Report for the three and nine month periods at and ending September 30, 2007 and September 30, 2006.
Exhibit 99.3	Northeast Utilities slide presentation before the Edison Electric Institute Financial Conference dated November 5, 2007.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.

NORTHEAST UTILITIES THE CONNECTICUT LIGHT AND POWER COMPANY PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE WESTERN MASSACHUSETTS ELECTRIC COMPANY (Registrants)
By:	/s/ Shirley M. Payne
Name:	Shirley M. Payne
Title:	Vice President-Accounting and Controller

Date: November 5, 2007

EX-99.1

Exhibit 99.1

P. O. Box 270 Hartford, CT 06141-0270 107 Selden Street Berlin, CT 06037 (860)-665-5000

News Release

CONTACT:	Jeffrey R. Kotkin
OFFICE:	(860) 665-5154

NU REPORTS THIRD QUARTER RESULTS, UPDATES EARNINGS GUIDANCE, CAPITAL INVESTMENT PROJECTIONS

$6 billion, five-year capital program to upgrade New England energy infrastructure announced

2007 consolidated earnings range raised to $1.45-$1.60 per share

2008 consolidated earnings guidance of $1.65-$1.95 per share announced

BERLIN, Connecticut, November 5, 2007 — Northeast Utilities (NU: NYSE) today reported earnings for the third quarter of 2007 and provided an updated capital expenditure forecast from 2007 through 2012. NU also raised 2007 earnings guidance and initiated 2008 consolidated earnings guidance of between $1.65 per share and $1.95 per share.

NU earned $50.2 million, or $0.32 per share, in the third quarter of 2007, compared with $37.5 million¹, or $0.23 per share¹, in the third quarter of 2006, excluding the impact of a one-time, $74 million reduction in income taxes in 2006 related to the sale of generating plants formerly owned by The Connecticut Light and Power Company (CL&P), NU’s largest subsidiary. Including that one-time tax reduction, NU earned $111.5 million, or $0.72 per share, in the third quarter of 2006.

NU earned $173.8 million, or $1.12 per share, in the first nine months of 2007, compared with $49.6 million,¹ or $0.32 per share,¹ in the first nine months of 2006, excluding the one-time, $74 million tax reduction. Including the tax reduction, NU earned $123.6 million, or $0.80 per share, in the first nine months of 2006. Nine-month 2006 results include losses of $73.7 million at NU’s competitive energy businesses, primarily related to charges at NU’s former retail energy marketing business, which was sold in June 2006.

Charles W. Shivery, NU’s chairman, president and chief executive officer, also attributed NU’s improved operating results over the first nine months of 2007 to the impact of rate settlements for three of NU’s four distribution utilities; higher regulated sales; and growth in the company’s transmission segment, where the company is investing heavily to meet the regional energy needs of customers.

“Our focus on our regulated utilities continues to provide significant benefits to customers in the form of a more reliable New England energy infrastructure and lower congestion costs, and to investors in the form of more predictable earnings and dividend growth,” Shivery said.

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2007 and 2008 earnings guidance

NU today raised its 2007 earnings range to $1.45-$1.60 per share from $1.30-$1.55 per share. NU expects its distribution and generation segment to earn between $0.85 per share and $0.95 per share in 2007 and its transmission segment to earn between $0.50 per share and $0.55 per share. NU also expects earnings of approximately $0.05 per share at its parent company and service company affiliates and approximately $0.05 per share at its remaining competitive operations, excluding the effect of marking to market its remaining wholesale obligations. In the first nine months of 2007, marking those obligations to market resulted in a $2.8 million after-tax charge.

NU also today projected a 2008 consolidated earnings range of between $1.65 per share and $1.95 per share. That range includes projected distribution and generation earnings of between $1.10 per share and $1.25 per share, transmission earnings of between $0.70 per share and $0.80 per share, parent and other company losses of between $0.10 per share and $0.15 per share, and breakeven competitive business results, excluding the effect of marking to market its remaining wholesale energy obligations. Shivery said 2008 distribution results will be impacted by the outcome of the ongoing CL&P rate case in which a decision from state regulators is now scheduled for late next month.

Shivery said NU’s 2008 earnings guidance is consistent with NU’s previously estimated compounded five-year annual earnings per share growth rate of between 10 percent and 14 percent, with significantly higher growth projected for 2008 than in the later years. This growth rate assumes that the company meets the capital investment and rate base projections noted below and that it receives appropriate regulatory approvals and allowed returns and timely rate treatment for those investments.

Capital investment projections

Also today, NU released new five-year capital expenditure projections for the period of 2008 through 2012. During that period, NU expects to invest approximately $6 billion in New England’s energy infrastructure, including $3 billion in its high-voltage electric transmission system, $2.5 billion in its electric and natural gas distribution system, and approximately $350 million on upgrades to the generation owned by Public Service Company of New Hampshire (PSNH). Those expenditures are projected to increase NU’s overall regulated rate base from approximately $5.4 billion at the end of 2007 to approximately $9.4 billion at the end of 2012.

“Regional energy planners continue to identify and we continue to construct transmission projects necessary to meet the reliability needs of the New England region and provide for the more efficient use of the region’s generation,” Shivery said. “For example, our $335 million, Bethel-Norwalk 345-kv transmission project has not only improved reliability in southwest Connecticut, it has also reduced congestion costs by more than $130 million since it entered service in October 2006.”

2007 Results—Transmission

NU’s transmission segment earned $20.0 million in the third quarter of 2007 and $57.0 million in the first nine months of 2007, compared with $18.2 million in the third quarter of 2006 and $43.6 million in the first nine months of 2006. The increase in third quarter net income in 2007, compared with the same period of 2006, reflects a higher level of investment in NU’s transmission facilities, partially offset by a $2 million charge related to a Federal Energy Regulatory Commission (FERC) order concerning allowed transmission returns during a 15-month period ended in September 2006.

Shivery provided the following update on NU’s major southwest Connecticut transmission projects:

• CL&P’s $1.05 billion share of a 69-mile 345-kV transmission line between Norwalk and Middletown, Connecticut, is approximately 52 percent complete. Although this project is scheduled to be complete by

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the end of 2009, construction is ahead of schedule and CL&P continues to review the remaining work to determine whether it can be completed by an earlier date.

• CL&P’s nine-mile, $223 million, 115-kV Glenbrook underground transmission project between Norwalk and Stamford, Connecticut, is approximately 54 percent complete and expected to be in service by the end of 2008.

• CL&P’s $72 million share of a replacement undersea cable between Norwalk and Northport, Long Island, is approximately 56 percent complete and expected to be in service in the second half of 2008.

NU’s capital spending totaled $842.1 million in the first nine months of 2007, including $490.0 million on transmission. NU expects to invest nearly $1.3 billion in New England’s energy infrastructure in 2007, including approximately $750 million in transmission.

Distribution and Generation

NU’s distribution and generation segment earned $28.5 million in the third quarter of 2007 and $100.1 million in the first nine months of 2007. In the third quarter of 2006, the distribution and generation segment earned $13.7 million¹, excluding the one-time reduction in tax expense related to the treatment of excess deferred income taxes and unamortized tax credits related to CL&P’s former generating plants, and $87.7 million including it. For the first nine months of 2006, the distribution and generation segment earned $76.4 million,¹ excluding the reduction in tax expense and $150.4 million including it.

CL&P’s distribution segment earned $16.7 million in the third quarter of 2007 and $44.3 million in the first nine months of 2007, compared with earnings of $10.4 million¹ in the third quarter and $40.2 million¹ in the first nine months of 2006, excluding the one-time reduction in tax expense. Excluding the impact of the tax expense reduction, CL&P third-quarter distribution earnings increased $6.3 million in the third quarter of 2007, compared with the same period of 2006, reflecting lower storm and heat-related operating costs and a $7 million annualized rate increase, partially offset by the expiration of the procurement fee at the end of 2006 and higher interest expense. Including the reduction in tax expense, CL&P’s distribution segment earned $84.4 million in the third quarter of 2006 and $114.2 million in the first nine months of 2006.

PSNH’s distribution and generation segment earned $11.0 million in the third quarter of 2007 and $31.7 million in the first nine months of 2007, compared with earnings of $5.8 million in the third quarter of 2006 and $21.2 million in the first nine months of 2006. Results in 2007 have benefited from the conclusion of PSNH’s distribution rate case, with new rates becoming effective July 1, 2007, partially offset by higher operating expense.

Western Massachusetts Electric Company’s (WMECO) distribution segment earned $4.2 million in the third quarter of 2007 and $13.6 million in the first nine months of 2007, compared with earnings of $2.8 million in the third quarter of 2006 and $8.6 million in the first three quarters of 2006. Improved 2007 results were due to the impact of WMECO’s distribution rate settlement that took effect January 1, 2007.

Yankee Gas Services Company lost $3.4 million in the third quarter of 2007 and earned $10.5 million in the first nine months of 2007, compared with a loss of $5.3 million in the third quarter of 2006 and a profit of $6.4 million in the first nine months of 2006. The improved year-to-date results were largely due to an 8.2 percent increase in firm sales resulting primarily from a colder heating season in 2007, compared with 2006, and a rate settlement that was effective July 1, 2007, partially offset by higher operating and interest expense.

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Competitive businesses

NU Enterprises, Inc. (NUEI), the holding company for NU’s competitive businesses, whose remaining contracts continue to expire or be closed out, earned $0.7 million in the third quarter of 2007 and earned $8.1 million in the first nine months of 2007, including the aforementioned $2.8 million charge, compared with earnings of $3.2 million in the third quarter of 2006 and losses of $73.7 million in the first nine months of 2006.

Parent and other NU subsidiaries

NU Parent and its service company affiliates earned $1.0 million in the third quarter of 2007 and $8.6 million in the first nine months of 2007, compared with earnings of $2.4 million in the third quarter of 2006 and $3.3 million in the first nine months of 2006. Improved year-to-date results were due primarily to interest earned on cash the parent received from the November 2006 sale of NU’s competitive generation some of which NU continued to hold through the first nine months of 2007.

NU has approximately 155 million common shares outstanding. It operates New England’s largest energy delivery system, serving more than 2 million customers in Connecticut, New Hampshire and Massachusetts.

The following table reconciles 2007 and 2006 third-quarter and first nine-month results:

		Third Quarter			First Nine Months
2006	Reported EPS	$	0.72		$	0.80
	Competitive business gain/loss in 2006		($0.02	)	$	0.48
	Regulated and Parent EPS in 2006	$	0.70		$	1.28
	Impact of reduction in CL&P tax expense		($0.48	)		($0.48	)
	Regulated and Parent EPS in 2006 ex. reduction in CL&P tax expense	$	0.22		$	0.80
	Improved transmission earnings in 2007	$	0.01		$	0.09
	Improved distribution, generation results in 2007, ex. CL&P tax reduction	$	0.09		$	0.15
	Improved Parent/Other results in 2007	$	0.00		$	0.03
	Regulated and Parent EPS in 2007	$	0.32		$	1.07
	Competitive business results in 2007	$	0.00		$	0.05
2007	Reported EPS	$	0.32		$	1.12

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Financial results for the third quarter and first nine months of 2007 and 2006 are noted below.

Three months ended:

(in millions, except EPS)	September 30, 2007			September 30, 2006			Increase (Decrease)			2007 EPS (2)
CL&P Distribution ex. 2006 reduction in CL&P tax expense	$	16.7		$	10.4	1	$	6.3	1	$	0.11
PSNH Distribution/Generation	$	11.0		$	5.8		$	5.2		$	0.07
WMECO Distribution	$	4.2		$	2.8		$	1.4		$	0.02
Yankee Gas		($3.4	)		($5.3	)	$	1.9			($0.02	)
Total—Distribution/Generation ex. 2006 reduction in CL&P tax expense	$	28.5		$	13.7	1	$	14.8	1	$	0.18
CL&P Transmission	$	16.9		$	15.2		$	1.7		$	0.11
PSNH Transmission	$	2.0		$	2.1		($	0.1	)	$	0.01
WMECO Transmission	$	1.1		$	0.9		$	0.2		$	0.01
Total—Transmission	$	20.0		$	18.2		$	1.8		$	0.13
Total—Regulated Businesses ex. 2006 reduction in CL&P tax expense	$	48.5		$	31.9	1	$	16.6	1	$	0.31
NU Parent and Other Affiliates	$	1.0		$	2.4			($1.4	)	$	0.01
Total—Regulated and Parent ex. reduction in CL&P tax expense	$	49.5		$	34.3	1	$	15.2	1	$	0.32
Reduction in CL&P tax expense		—		$	74.0			($74.0	)		—
Total—Competitive	$	0.7		$	3.2			($2.5	)	$	0.00
Reported Earnings	$	50.2		$	111.5			($61.3	)	$	0.32

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Nine months ended:

(in millions, except EPS)	September 30, 2007		September 30, 2006			Increase (Decrease)			2007 EPS (2)
CL&P Distribution ex. 2006 reduction in CL&P tax expense	$	44.3	$	40.2	1	$	4.1	1	$	0.29
PSNH Distribution/Generation	$	31.7	$	21.2		$	10.5		$	0.20
WMECO Distribution	$	13.6	$	8.6		$	5.0		$	0.09
Yankee Gas	$	10.5	$	6.4		$	4.1		$	0.07
Total—Distribution/Generation ex. 2006 reduction in CL&P tax expense	$	100.1	$	76.4	1	$	23.7	1	$	0.65
CL&P Transmission	$	47.3	$	34.0		$	13.3		$	0.31
PSNH Transmission	$	6.5	$	6.7			($0.2)		$	0.04
WMECO Transmission	$	3.2	$	2.9		$	0.3		$	0.02
Total—Transmission	$	57.0	$	43.6		$	13.4		$	0.37
Total—Regulated Businesses ex. 2006 reduction in CL&P tax expense	$	157.1	$	120.0	1	$	37.1	1	$	1.02
NU Parent and Other Affiliates	$	8.6	$	3.3		$	5.3		$	0.05
Total—Regulated and Parent ex. 2006 reduction in CL&P tax expense	$	165.7	$	123.3	1	$	42.4	1	$	1.07
Reduction in CL&P tax expense		—	$	74.0			($74.0)			—
Total Competitive	$	8.1		($73.7)		$	81.8		$	0.05
Reported Earnings	$	173.8	$	123.6		$	50.2		$	1.12

Retail sales data

Gwh for three months ended	September 30, 2007	September 30, 2006	Percent Change
CL&P	6,387	6,435	(0.7	%)
PSNH	2,135	2,139	(0.2	%)
WMECO	1,043	1,053	(1.0	%)
Total NU	9,560	9,622	(0.6	%)
Gwh for nine months ended
CL&P	18,145	17,979	0.9	%
PSNH	6,119	6,059	1.0	%
WMECO	3,020	3,011	0.3	%
Total NU	27,271	27,029	0.9	%
Yankee Gas firm volumes in mmcf for three months ended	4,590	4,781	(4.0	%)
Yankee Gas firm volumes in mmcf for nine months ended	27,508	25,434	8.2	%

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This news release includes statements concerning NU’s expectations, plans, objectives, future financial performance and other statements that are not historical facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, readers can identify these forward-looking statements by words such as “estimate”, “expect”, “anticipate”, “intend”, “plan”, “believe”, “forecast”, “should”, “could”, and similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results or outcomes to differ materially from those included in the forward-looking statements. Factors that may cause actual results to differ materially from those included in the forward-looking statements include, but are not limited to, actions or inactions by local, state and federal regulatory bodies; competition and industry restructuring; changes in economic conditions; changes in weather patterns; changes in laws, regulations or regulatory policy; changes in levels or timing of capital expenditures; developments in legal or public policy doctrines; technological developments; changes in accounting standards and financial reporting regulations; fluctuations in the value of our remaining competitive electricity positions; actions of rating agencies; subsequent recognition, derecognition and measurement of tax positions; and other presently unknown or unforeseen factors. Other risk factors are detailed from time to time in our reports to the Securities and Exchange Commission. Any forward looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update the information contained in any forward-looking statements to reflect developments or circumstances occurring after the statement is made.

(1) These results exclude the impact of the one-time $74 million reduction to CL&P tax expense in 2006. These non-GAAP results are provided to more fully explain and compare the 2006 results.

(2) The only common equity securities that are publicly traded are common shares of NU. The EPS of each segment does not represent a direct legal interest in the assets and liabilities allocated to any one segment but rather represents a direct interest in NU’s assets and liabilities as a whole. EPS by segment is a non-GAAP measure that is calculated by dividing the net income or loss of each segment by the average fully diluted NU common shares outstanding for the period. Management uses this measure to provide segmented earnings guidance and believes that this measurement is useful to investors to evaluate the actual financial performance and contribution of NU’s business segments. This non-GAAP measure should not be considered as an alternative to NU consolidated EPS determined in accordance with GAAP as an indicator of NU’s operating performance.

#  #  #  #

Note: NU will webcast an investor presentation today at 7:30 a.m. Eastern Standard Time. The webcast can be accessed through NU’s website at www.nu.com.

EX-99.2

Exhibit 99.2

NORTHEAST UTILITIES AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	September 30, 2007		December 31, 2006
	(Thousands of Dollars)
ASSETS
Current Assets:
Cash and cash equivalents	$	207,653	$	481,911
Special deposits		31,919		48,524
Investments in securitizable assets		339,309		375,655
Receivables, less provision for uncollectible accounts of $18,924 in 2007 and $22,369 in 2006		326,900		361,201
Unbilled revenues		70,515		88,170
Fuel, materials and supplies		231,163		173,882
Marketable securities—current		67,781		67,546
Derivative assets—current		93,118		88,857
Prepayments and other		47,273		45,305
		1,415,631		1,731,051
Property, Plant and Equipment:
Electric utility		7,312,198		7,129,526
Gas utility		968,235		858,961
Other		307,835		299,389
		8,588,268		8,287,876
Less: Accumulated depreciation: $2,466,190 for electric and gas utility and $176,395 for other in 2007; $2,440,544 for electric and gas utility and $174,562 for other in 2006		2,642,585		2,615,106
		5,945,683		5,672,770
Construction work in progress		931,358		569,416
		6,877,041		6,242,186
Deferred Debits and Other Assets:
Regulatory assets		2,101,115		2,449,132
Goodwill		287,591		287,591
Prepaid pension		108,988		21,647
Marketable securities—long-term		56,733		50,843
Derivative assets—long-term		264,723		271,755
Other		227,162		249,031
		3,046,312		3,329,999
Total Assets	$	11,338,984	$	11,303,236

The data contained in this report is preliminary and is unaudited. This report is being submitted for the sole purpose of providing information to present shareholders about Northeast Utilities and Subsidiaries and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities.

NORTHEAST UTILITIES AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	September 30, 2007			December 31, 2006
	(Thousands of Dollars)
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Long-term debt - current portion	$	154,286		$	4,877
Accounts payable		506,990			569,940
Accrued taxes		21,150			364,659
Accrued interest		73,709			53,782
Derivative liabilities - current		90,921			125,843
Other		201,400			244,734
		1,048,456			1,363,835
Rate Reduction Bonds		1,015,232			1,177,158
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes		1,029,796			1,099,433
Accumulated deferred investment tax credits		29,740			32,427
Deferred contractual obligations		238,768			271,528
Regulatory liabilities		857,048			809,324
Derivative liabilities—long-term		104,619			148,557
Accrued postretirement benefits		172,423			203,320
Other		379,156			322,840
		2,811,550			2,887,429
Capitalization:
Long-Term Debt		3,473,523			2,960,435
Preferred Stock of Subsidiary - Non-Redeemable		116,200			116,200
Common Shareholders’ Equity:
Common shares, $5 par value - authorized
225,000,000 shares; 175,920,879 shares issued and 154,983,295 shares outstanding in 2007 and 175,420,239 shares issued and 154,233,141 shares outstanding in 2006		879,604			877,101
Capital surplus, paid in		1,463,520			1,449,586
Deferred contribution plan—employee stock ownership plan		(28,501	)		(34,766	)
Retained earnings		914,622			862,660
Accumulated other comprehensive income		6,305			4,498
Treasury stock, 19,705,353 shares in 2007 and 19,684,249 shares in 2006		(361,527	)		(360,900	)
Common Shareholders’ Equity		2,874,023			2,798,179
Total Capitalization		6,463,746			5,874,814
Total Liabilities and Capitalization	$	11,338,984		$	11,303,236

The data contained in this report is preliminary and is unaudited. This report is being submitted for the sole purpose of providing information to present shareholders about Northeast Utilities and Subsidiaries and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities.

NORTHEAST UTILITIES AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2007			2006			2007		2006
	(Thousands of Dollars, except share information)
Operating Revenues	$	1,451,080		$	1,592,784		$	4,547,426	$	5,401,233
Operating Expenses:
Operation -
Fuel, purchased and net interchange power		881,234			1,046,184			2,756,522		3,699,885
Other		195,237			248,956			679,015		827,278
Restructuring and impairment charges		—			1,287			193		9,712
Maintenance		53,858			55,918			159,703		143,539
Depreciation		64,522			61,355			191,393		179,840
Amortization		17,007			(8,639	)		19,795		48,755
Amortization of rate reduction bonds		52,403			49,161			151,316		141,836
Taxes other than income taxes		63,485			62,179			193,435		193,046
Total operating expenses		1,327,746			1,516,401			4,151,372		5,243,891
Operating Income		123,334			76,383			396,054		157,342
Interest Expense:
Interest on long-term debt		41,706			37,448			118,153		105,269
Interest on rate reduction bonds		15,111			18,197			47,300		57,060
Other interest		4,907			4,479			15,061		18,105
Interest expense, net		61,724			60,124			180,514		180,434
Other Income, Net		10,734			12,081			36,676		38,451
Income from Continuing Operations Before Income Tax Expense/(Benefit)		72,344			28,340			252,216		15,359
Income Tax Expense/(Benefit)		20,778			(75,702	)		75,442		(85,087	)
Income from Continuing Operations Before Preferred Dividends of Subsidiary		51,566			104,042			176,774		100,446
Preferred Dividends of Subsidiary		1,390			1,390			4,169		4,169
Income from Continuing Operations		50,176			102,652			172,605		96,277
Discontinued Operations:
Income from Discontinued Operations		—			15,945			—		54,792
(Losses)/Gains from Sale/Disposition of Discontinued Operations		(90	)		(1,605	)		1,927		(8,083	)
Income Tax (Benefit)/Expense		(38	)		5,543			761		19,401
(Loss)/Income from Discontinued Operations		(52	)		8,797			1,166		27,308
Net Income	$	50,124		$	111,449		$	173,771	$	123,585
Basic and Fully Diluted Earnings Per Common Share:
Income from Continuing Operations	$	0.32		$	0.67		$	1.12	$	0.63
Income from Discontinued Operations		—			0.05			—		0.17
Basic and Fully Diluted Earnings Per Common Share	$	0.32		$	0.72		$	1.12	$	0.80
Basic Common Shares Outstanding (weighted average)		154,930,930			153,883,480			154,672,270		153,651,610
Fully Diluted Common Shares Outstanding (weighted average)		155,420,239			154,320,675			155,210,704		154,036,770

The data contained in this report is preliminary and is unaudited. This report is being submitted for the sole purpose of providing information to present shareholders about Northeast Utilities and Subsidiaries and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities.

NORTHEAST UTILITIES AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine Months Ended September 30,
	2007			2006
	(Thousands of Dollars)
Operating Activities:
Net income	$	173,771		$	123,585
Adjustments to reconcile to net cash flows provided by operating activities:
Bad debt expense		19,983			25,665
Depreciation		191,393			182,752
Deferred income taxes		(41,144	)		130,432
Amortization		19,795			48,755
Amortization of rate reduction bonds		151,316			141,836
Amortization of recoverable energy costs		1,494			6,481
Pension expense, net of capitalized portion		13,776			20,626
Regulatory overrecoveries/(refunds)		95,766			(150,541	)
Derivative assets and liabilities		(31,641	)		(78,422	)
Deferred contractual obligations		(32,760	)		(72,255	)
Other non-cash adjustments		(2,561	)		940
Other sources of cash		—			9,375
Other uses of cash		(33,101	)		(17,398	)
Changes in current assets and liabilities:
Receivables and unbilled revenues, net		43,511			658,768
Fuel, materials and supplies		(57,281	)		14,831
Investments in securitizable assets		18,137			(20,284	)
Other current assets		(6,483	)		23,533
Accounts payable		(91,473	)		(461,183	)
Counterparty deposits and margin special deposits		20,858			38,842
Taxes receivable and accrued taxes		(350,529	)		(245,009	)
Other current liabilities		(34,676	)		(1,063	)
Net cash flows provided by operating activities		68,151			380,266
Investing Activities:
Investments in property and plant		(750,231	)		(600,302	)
Cash payments related to the sale of competitive businesses		(1,908	)		(19,429	)
Proceeds from sales of investment securities		196,083			127,010
Purchases of investment securities		(199,964	)		(123,319	)
Rate reduction bond escrow		3,372			(54,357	)
Other investing activities		7,968			3,874
Net cash flows used in investing activities		(744,680	)		(666,523	)
Financing Activities:
Issuance of common shares		8,988			6,310
Issuance of long-term debt		655,000			250,000
Retirement of rate reduction bonds		(161,926	)		(117,947	)
Increase in short-term debt		—			246,000
Reacquisitions and retirements of long-term debt		(4,877	)		(11,053	)
Cash dividends on common shares		(89,745	)		(83,560	)
Other financing activities		(5,169	)		1,180
Net cash flows provided by financing activities		402,271			290,930
Net (decrease)/increase in cash and cash equivalents		(274,258	)		4,673
Cash and cash equivalents - beginning of period		481,911			45,782
Cash and cash equivalents - end of period	$	207,653		$	50,455

The data contained in this report is preliminary and is unaudited. This report is being submitted for the sole purpose of providing information to present shareholders about Northeast Utilities and Subsidiaries and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities.

EX-99.3

EEI Financial Conference

NOVEMBER 5, 2007

Exhibit 99.3

2

Safe Harbor Provisions

This presentation contains statements concerning NU’s expectations, plans, objectives, future financial

performance and other statements that are not historical facts.

These statements are “forward-looking

statements”

within the meaning of the Private Securities Litigation Reform Act of 1995.  In some cases, a

listener can identify these forward-looking statements by words such as “estimate”, “expect”, “anticipate”,

“intend”, “plan”, “believe”, “forecast”, “should”, “could”, and similar expressions.  Forward-looking

statements involve risks and uncertainties that may cause actual

results or outcomes to differ materially

from those included in the forward-looking statements.  Factors that may cause actual results to differ

materially from those included in the forward-looking statements include, but are not limited to, actions or

inactions by local, state and federal regulatory bodies; competition and industry restructuring; changes in

economic conditions; changes in weather patterns; changes in laws, regulations or regulatory policy;

changes in levels or timing of capital expenditures; developments in legal or public policy doctrines;

technological developments; changes in accounting standards and financial reporting regulations;

fluctuations in the value of our remaining competitive electricity positions; actions of rating agencies;

subsequent recognition, derecognition and measurement of tax positions; and other presently unknown or

unforeseen factors. Other risk factors are detailed from time to

time in our reports to the Securities and

Exchange Commission.  Any forward looking statement speaks only as of the date on which such

statement is made, and we undertake no obligation to update the information contained in any forward-

looking statements to reflect developments or circumstances occurring after the statement is made.

3

Overview

2007:  Strong, successful year

2008:  Another strong growth year projected

2008-2012:  Continued attractive investment opportunities

identified and quantified

Long-term outlook:  Opportunities for NU as significant changes

sweep across the industry

4

Key Initiatives for 2008-2012

Continue to successfully execute

Effectively deploy the capital in the 5 year plan

Manage the regulatory business model to earn on the capital

Develop and deliver solutions for the region’s energy challenges

5

Next Initiatives:  Dealing With New England’s Emerging

Energy Challenges

Regional

Challenges

Create

Opportunities

Increasing

Peak Load

High Fuel

Prices

Regional

Greenhouse

Gas Initiative

(RGGI)

Requirements

Increasing

Renewable Portfolio

Standards

(RPS)

Increased

Energy

Efficiency

6

New England States Are Increasing Their

Renewable Portfolio Expectations

CT:  27% by 2020

VT:  2005-2012             

Load growth to be met with

renewables and capped at

10%.  (Voluntary goal)

ME:  30% by 2000,

additional 10% new

resources by 2017. 

Total is 40%.

NH:  23.8% by 2025

RI:  16% by 2019

MA:  4% in 2009;

potential for 1%

annual increments

from 2010 to 2014

7

0%

5%

10%

15%

20%

25%

Year

RPS Requirements - %

Existing Renewables - %

Beyond 2010, A Growing Gap In Meeting New England Renewable

Portfolio Standards (RPS) Is Projected

17,269 GWh

2020

Decrease in percentage of

existing renewables is due to

growth in New England energy

requirements

2020

8

New England’s Renewable Challenge

The gap between existing and required renewables widens

significantly over time

We believe

The gap cannot be filled with existing or planned generation

New England will need to look elsewhere to meet the region’s

renewable energy needs

Renewables are only one part of the regional energy challenge

9

Meeting the RGGI Requirements Will Be Challenging

Under Any Load Growth Scenario

1.3% energy growth

0% energy growth

RGGI Cap

New England CO2 Emissions

40

45

50

55

60

65

70

75

80

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Year

New England RGGI CO2 Cap

Projected CO2 Emissions

10

Northern New England and Eastern Canada Will

Become Valuable Sources to Meet New England’s Needs

H

N

W

Hydro

Nuclear

Wind

B

Biomass

General Movement

Of Power

New England’s Most Attractive

Renewable Energy Locations

W

W

W

W

W

B

B

B

B

N

H

H

H

Quebec

Hydro Quebec plans

$20 Billion investment

in Hydro and

export transmission

Newfoundland

& Labrador

Exploring development

of large Hydro facilities

New Brunswick

Exploring development

of 1 or 2 nuclear units

W

Eastern Canadian Development

11

Addressing New England’s Challenge

New England needs

Resources assembled to 

meet the opportunities

Partnerships among key

stakeholders

An expanded dialogue to

identify a portfolio of solutions

Results

NU

Organized an internal team to

define the issues and develop 

solutions

Reaching out to regional

stakeholders

Meeting with leaders in New

England and Canada to begin

discussing possible solutions

Will put solutions on the table

12

Regulated Investment Strategy

13

The Execution Of Our Strategy Has Been Successful, Resulting

In Favorable Outcomes For Investors And Customers

Strong operations are the linchpin of our overall strategy

Our capital investment plan is on track and providing investors with

continued growth

Customers are benefiting from increased reliability, cost savings and

lower power plant emissions

14

Current and Future Investments Produce Customer Benefits

Through Nearly $6 Billion Investment Plan

Generation

Existing New Hampshire generation will require an ongoing level of capital investment

totaling around $100 million

Installation of a scrubber at our PSNH Merrimack station is projected to cost about $250

million, with $215 million included in this forecast period

While not included in this forecast, potential exists for peaking units in Connecticut and

New Hampshire and additional renewable resources in New Hampshire

Distribution

Reliability spending to meet peak demand growth and improve infrastructure totals    

$2.5 billion

Deployment of Advanced Metering Infrastructure (AMI) represents an additional

investment opportunity that is not included in this forecast

Transmission

Southwest

Connecticut

and

other

New

England

projects

continue

to

make

excellent

progress

and

are

expected

to

add

nearly

$2.1

billion

to

plant-in-service

over

the

forecast

period

The New England East-West Solution (NEEWS) family of projects, Springfield 115-kV

Cables will advance into the siting phase and are currently projected to cost at least $1.4

billion

Future projects in northern New England and Canada represent additional investment

opportunities not included in this forecast

15

Transmission, Distribution and Regulated Generation

Projects Provide Savings for Customers

Transmission projects provide benefits in the form of increased

reliability and reduced congestion and capacity market costs

Bethel-Norwalk has reduced Connecticut congestion costs by more than 

$130 million since October 2006

Middletown-Norwalk is expected to provide $20 -

$30 million in avoided costs

NEEWS projects are expected to provide additional savings of at least $200

million per year in reduced congestion and capacity costs

Distribution and generation projects provide benefits in the form of

increased reliability and reduced energy costs for customers

Yankee Gas LNG facility is complete and will lower costs to customers by 

$25 million a year

Northern Wood Power Project is dispatching power below market and 100%

of our renewable energy certificates are sold for 2007

New Hampshire-owned utility generation has resulted in the lowest energy

costs for customers in New England –

7.83 cents per kWh –

33% lower than

current market

16

Regulated Generation Investments --

Merrimack Scrubber

Reduces sulfur emissions by 98%

Reduces mercury emissions by 85%

Avoids $15-20 million annually in sulfur credit purchases

Impact on Merrimack production costs of no more than 0.6 cents/kWh, preserving

PSNH’s low-cost generation fleet

Investment recovered through PSNH generation rates

Merrimack Scrubber

Required by New Hampshire

statute for mercury emissions

reductions

Current estimate: $250 million

Engineering, Procurement &

Construction (EPC) contract

secured with Washington

Group International in fall 2007

Construction start: 2009

Project completion: 2013

17

Distribution Infrastructure Investments

2008 –

2012 investment

Invest $2.5 billion in distribution

capital spending

CL&P:  $1.5 billion

PSNH: $525 million

WMECO: $175 million

Yankee Gas: $300 million

Peak Load Growth & New Business Support -

44%

Basic Business Requirements -

31%

Plant Relocations

Equipment Failures

Information Technology

Other Capital

Aging Infrastructure -

25%

Regulatory Commitments

Reliability/Obsolescence

Facility Upgrades

18

Transmission Capital Program and Rate Base Continue to Grow

2006

2007

2008

2009

2010

2011

2012

Fall 2005 EEI

Conference

Fall 2007 EEI

Conference

Fall 2006 EEI

Conference

Five-Year Capital Program --

$2.3 Billion

Five-Year Capital Program --

$3.0 Billion

Five-Year Capital Program --

$2.4 Billion

Annual Plant-in-

Service: $ Millions

$391

$277

$724

$883

$341

$396

$617

(Actual)

(Projected)

3,944

1,046

Total NU

459

134

PSNH

621

71

WMECO

2,864

841

CL&P

Projected

12/31/12

Rate Base

($ Millions)

Actual

12/31/06

Rate Base

($ Millions)

Operating

Company

19

2008-2012 Transmission Capital Expenditures

Increase By Over 20% From Previous Five-Year Program

$0

$100

$200

$300

$400

$500

$600

$700

$800

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Major Southwest CT

NEEWS

Springfield 115-kV Cables

Other

Historic

Forecast

Up To $3.0 Billion

$1,816 Million

$560 million of

major SWCT

projects in 2008-

2012 forecast

period; $1.68 billion

in total

NEEWS projects

estimated at        

$1 billion during the

2008-2012 forecast

period

$1.1 billion of

additional

forecasted projects

Successful

completion of

SWCT projects

NEEWS projects

ramping up

Springfield 115-kV

Cables projects

estimated at $350

million during the

2008-2012 forecast

period

Springfield 115-kV

Cables project

ramping up

20

Four Major Southwest Connecticut Transmission Projects –

A $1.68 Billion Investment, About 2/3 Complete

Bethel-Norwalk

345-kV underground

& overhead

$350 Million

21 miles 345-kV               

(56% underground)

10 miles 115-kV            

(100% underground)

Completed October

2006 at a cost of $335

million

Middletown-Norwalk 345-kV

underground & overhead

$1,047 Million (NU share)

Glenbrook Cables

115-kV underground

$223 Million

9 miles 115-kV underground

Projected in-service date:    

End of 2008

Under contract –

construction under way, 54%

complete at 11/05/07

Long Island Cable

138-kV cross-sound

$72 Million (NU share)

11 miles 138-kV submarine

cable

Joint project with LIPA

Projected in-service date: 

Second half of 2008

56% complete at 11/05/07

69 miles 345-kV  (35% underground)

57 miles 115-kV  (1% underground)

Joint project with United Illuminating

Projected in-service date: End 2009

52% complete at 11/05/07

50% of CT

Load

21

NEEWS and Springfield 115-kV Cables Projects Will Better

Connect Eastern, Western New England by 2013

Springfield 115-kV

Cables Project

SPRINGFIELD

HARTFORD

345-kV Substation

Generation Station

345-kV ROW

115-kV ROW

Greater Springfield

Reliability Project

Central Connecticut

Reliability Project

Interstate

Reliability Project

22

Springfield 115-kV Cables & NEEWS Project Schedules

2013

Late 2012/2013

Late 2012/2013

2011

In-service

2010/Early 2011

2010

2010

2009

Construction

targeted to start

on staggered

basis

2010

Late 2009/Early

2010

Late 2009/Early

2010

Early 2009

Siting completed

2010 -2012

2009 -2012

2009 -2012

2008 -

2010

Procurement

contracts

Late 2008

Mid 2008

Mid 2008

Late 2007/Early 2008

State siting

application filed

Late 2008

Mid 2008

Mid 2008

Late 2007/Early 2008

ISO technical

applications

approval

Central CT

Reliability

(345-kV)

Interstate

Reliability

(345-kV)

Greater

Springfield

Reliability      

(115-kV/345-kV)

Springfield 115-kV

Cables

NEEWS

23

Other Forecast Projects Total $1.1 Billion

$1.1 Billion

CL&P

115-kV Reliability Program

30.0

Fiber Optic Communications

20.0

310/368 Line Split

29.0

Eastern Connecticut Reliability

190.5

Barbour Hill Autotransformer

10.7

Aging Equipment & NERC

Compliance Upgrades (24% in

RSP)

91.4

Numerous Projects Addressing

Maintenance, Reliability &

Load Growth (55% in RSP)

202.9

Total CL&P Other Projects

574.5

$'s Millions

WMECO

115-kV Reliability Program

15.0

Fiber Optic Communications

10.0

Ludlow Transformer Repl.

12.0

Berkshire 2nd Autotransformer

9.9

Aging Equipment & NERC

Compliance Upgrades (100%

in RSP)

64.5

Numerous Projects Addressing

Maintenance, Reliability &

Load Growth (46% in RSP)

23.5

Total WMECO Other Projects

134.9

$'s Millions

PSNH

115-kV Reliability Program

25.0

Fiber Optic Communications

15.0

Scobie 3rd Autotransformer

12.4

White Mountain Region Upgrades

14.9

Monadnock Region Upgrades

26.6

Nashua Area Solution

14.0

Deerfield & Gosling Autos

52.7

Aging Equipment & NERC

Compliance Upgrades (64% in

RSP)

163.8

Numerous Projects Addressing

Maintenance, Reliability &

Load Growth (42% in RSP)

76.9

Total PSNH Other Projects

401.3

$'s Millions

24

Future Resources Aligned with Our Strategic Business Plans

Construction Expertise –

experienced, proven firms, track record with NU

Burns & McDonnell (Transmission, including NEEWS)

Washington Group International (Merrimack Scrubber)

Material –

negotiating to lock in key components

Transformers, 115-kV underground cable and steel poles

Labor –

aligning resources with project needs

25

Established Worldwide Access to Key Suppliers

GC Cable from Prysmian in Finland

GC DFR from

Qualitrol in

Ireland

GC Breakers & Switches

from ABB Power in U.S.

GC Scada Cabinet from

GE Harris in Canada

M-N Steel Poles from

Thomas & Betts in U.S.

M-N Overhead Ground

Wire from Intral in Canada

M-N 345-kV Breakers from

HICO in South Korea

M-N Autotransformers &

Transformers from Areva in

Brazil

M-N Shunt Reactors from Siemens in Germany

M-N GIS from Mitsubishi

in Japan

M-N 115-kV Cable from Prysmian in Italy

M-N 345-kV Cable

from Silec in

France

B-N Underground

Cables from VISCAS

in Japan

26

Regulated Investment Strategy In Summary

Strong execution of our business plan

Transmission CapEx program up by over 20% and on schedule

Resources aligned with our strategic business plans

Infrastructure upgrades providing reliability improvements and

savings for customers

27

Financial

28

Overview

NU raising 2007 earnings guidance

2008 guidance is consistent with our growth plan

Our new $6 billion, five-year capital program reflects significantly

increased transmission investment needs

Rate base growth and ROE improvement support underlying 

10-14% five-year EPS growth rate

Capital program very financeable

Remain focused on total shareholder return equation

29

$18.2

$3.2

$28.5

$20.0

$1.0

$0.7

$50.2

$37.5*

$13.7*

$2.4

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

3Q 2006

3Q 2007

Third Quarter Results

Distribution and 

Generation

Transmission

Parent/Other

Competitive

Total

*Excludes one-time $74 million benefit to CL&P from 2006 tax reduction

108.0%

9.9%

33.9%

30

2007 Results Through September 30

Distribution and 

Generation

Transmission

Parent/Other

Competitive

Total

31.0%

30.7%

$43.6

($73.7)

$100.1

$57.0

$8.6

$8.1

$173.8

$3.3

$49.6*

$76.4*

($100.0)

($80.0)

($60.0)

($40.0)

($20.0)

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

$180.0

9 Mos. 2006

9 Mos. 2007

*Excludes one-time $74 million benefit to CL&P from 2006 tax reduction

31

$21.2

$6.4

$44.3

$31.7

$13.6

$10.5

$40.2*

$8.6

$0.0

$15.0

$30.0

$45.0

$60.0

9 Mos. 2006

9 Mos. 2007

Distribution and Generation Through September 30

CL&P

PSNH

WMECO

Yankee Gas

10.2%

49.5%

58.1%

64.1%

*Excludes one-time $74 million benefit to CL&P from 2006 tax reduction

32

Transmission Earnings Tracking Rate Base Investment

$945

$1,240

$455

$605

$1,030

$43.6

$59.8

$41.1

$28.2

$57.0

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

2004

2005

2006

2006

2007

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

Year End Rate Base

Net Income

Nine Months

33

2007 –

2008 EPS Guidance

$1.65 -

$1.95

Breakeven**

($0.15) -

($0.10)

$0.70 -

$0.80

$1.10 -

$1.25

2008

Projected

$1.45 -

$1.60

$1.30 -

$1.55

$1.16*

NU Consolidated

$0.05**

Breakeven**

N/A

Competitive

$0.05

$0.00 -

$0.05

$0.02

NU Parent/Other

$0.50 -

$0.55

$0.50 -

$0.60

$0.39

Transmission

$0.85 -

$0.95

$0.80 -

$0.90

$0.75*

Distribution/Generation

2007 Current

2007 Original

2006 Actual

*Excludes one-time benefits to

CL&P from 2006 tax reduction and impact of generation sales

**Excludes mark-to-market impact on remaining wholesale positions

34

Drivers Of Earnings Growth

Increased transmission

investment

PSNH rate settlement

Yankee rate settlement

WMECO rate

settlement

Interest income on cash

from generation sale

Increased transmission

investment

CL&P rate case

Rate settlements

Managing costs

Offset by

Decreasing cash

position at NU Parent

2007

2008

35

Trailing 12-Month Distribution Regulatory ROEs

7.5%

6.4%

5.9%

9.6%

9.0%

9.4%

9.9%

6.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

CL&P

PSNH

WMECO

Yankee Gas

2006

12 Months Ended 9/30/07

9 –

10% Long-term Expectation

36

Completed Distribution Rate Cases

Sharing

outside 8-12%

$1 million plus

trackers

$3 million

1/1/07

1/1/08

Settled and

approved

WMECO

10.1%

$22.1 million

net

7/1/07

Settled and

approved

Yankee Gas

9.67%

$46.6 million

$3 million

7/1/07

1/1/08

Settled and

approved

PSNH

Authorized

ROE

Increases

Effective

Dates

Status

Company

37

CL&P Distribution Rate Case

January 1, 2008

Requested Effective Date

July 30, 2007

December 13, 2007

December 27, 2007

Rate Case Filed

Draft decision

Final decision

Double to $25 million/year to support shorter clearing cycle

Tree Trimming

$290 million/year

Distribution Capex

Guaranteed revenue/customer

No weather normalization

Decoupling

45% equity (per rating agency)

Capital Structure

11%

ROE

$189 million in 2008

$22 million in 2009

Rate Increase

CL&P Rate Proposals

38

2007-2012:  New Capital Expenditure Forecast

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Five-year 2008-2012 capital spending of $6.0 billion,

compared with last year’s 2007-2011 $4.9 billion plan;

2007-2011 period up by $950 million

Distribution Capex From 11/06 Forecast

Transmission Capex From 11/06 Forecast

Distribution Capex From 11/07 Forecast

Transmission Capex From 11/07 Forecast

2007 Est.*

2010 Est.*

2011 Est.*

2008 Est.*

2009 Est.*

2012 Est.*

*

Includes capex of approximately $18 million per year for 11/06 forecast and $20 million per year for 11/07 forecast

at corporate service companies on behalf of operating companies

39

Elements of 2008-2012 Capex Projections

$560 million to complete SW

CT transmission projects

$1.3 billion for NEEWS,

Springfield projects

$1.1 billion for smaller

transmission projects

$290 million/year for CL&P

distribution

Higher PSNH, Yankee Gas

distribution capex per rate

settlements

$215 million for Merrimack

scrubber

$25 million for AMI

New CL&P generation

New PSNH generation

Widespread AMI

implementation

New transmission

opportunities

What’s In

What’s Not

2013 Spending

Needed For Completion

NEEWS:    $100 million

Scrubber:  $35 million

40

Projected Combined Year-End Rate Base

$1,046

$1,469

$2,132

$2,752

$3,045

$3,489

$3,944

$3,429

$3,881

$4,321

$4,638

$4,910

$5,170

$5,431

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

2006

Actual

2007 Est.

2008 Est.

2009 Est.

2010 Est.

2011 Est.

2012 Est.

Electric Transmission

Distribution and Generation

Target Utility Capitalization Structure = 45% equity, 55% debt

Blended Transmission ROE 11.75% in 2007 rising to 12.1% in 2012

Projected Cost of Capital Distribution ROE = 9% -

10%

$5,350

$7,390

$6,453

$7,955

Rate Base

2008-2012

CAGR of 12%

$4,475

$8,659

Supports EPS CAGR of 10-14%

Projected

Distribution &

Generation

Rate Base

CAGR of 7%

Transmission

Rate Base

CAGR of 22%

$9,375

41

Rate Base Composition

2006 Rate Base Composition

2012E Rate Base Composition 

$4.5 billion

$9.4 billion

Rate Base: 

$1.05 billion

(Actual 2006)

’07-’12 Capex: 

$3.8 billion

Rate Base: 

$2.9 billion

(Actual 2006)

’07-’12 Capex: 

$3.0 billion

Rate Base: 

$0.5 billion

(Actual 2006)

’07-’12 Capex: 

$0.4 billion

Electricity

Transmission

Electricity

Distribution & Generation

Gas LDC

Transmission becomes much larger share of total rate base

23%

11%

66%

Transmission

Gas

Dist. & Generation

42%

9%

49%

Transmission

Gas

Dist. & Generation

42

Transmission Becomes a Much Larger Share of Earnings

36.3%

21.2%

18.1%

25.2%

32.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

2003

2004

2005

2006*

2007

YTD

2008

2009

2010

2011

2012

*Excludes benefit to CL&P from 2006 tax reduction

43

Ability To Finance Growth

$3,628

$116

$2,874

Total Debt

Preferred Stock

Common Equity

9/30/07

Strong balance sheet

Strong cash and liquidity position

Strong access to capital

$655 million 2007 financing program

complete

Approximately $350 million of NU parent

cash

Nearly $1 billion unused bank, accounts

receivable lines

Conservative dividend payout

Solid credit ratings at parent, subsidiaries

Successful debt financings

Modest equity requirements

1.8%

43.4%

54.8%

44

Funding The Capital Program and Dividends 2008 -

2012

$2.8

$3.6

$0.35

$6.75 Billion

Existing cash

•

Cash remaining from 2006

NUEI generation sale

Net new financings

•

$2.3 billion of new debt, A/R

•

$0.5 billion of new Parent

common equity/hybrids

Internally generated cash net of

RRB retirements

•

Approximately $550 million in 2008

rising to $800-$850 million by 2012

45

Key Financial Considerations

Commitment to investment grade ratings

Strong balance sheet

55% leverage target at utility subsidiaries

60% consolidated leverage target

Improve cash flow during construction cycle

Maintain financial flexibility to allow additional investment opportunities

Use of NU equity to support accretive capital expenditures and projects

Continued focus on an attractive total shareholder return emphasizing

both EPS and dividend growth

46

Questions and Answers

47

Appendix

48

2006-2012:  Capital Expenditures and Depreciation

$946

$1,276

$1,069

$987

$1,247

$1,372

$1,311

$362

$340

$329

$338

$298

$285

$241

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2006

Actual

2007 Est.

2008 Est.

2009 Est.

2010 Est.

2011 Est.

2012 Est.

Total Capex (incl. cost of removal and AFUDC)

Depreciation

Significant capital spending through 2012

*

Capex includes approximately $20 million per year at corporate service companies on behalf of operating companies

49

$658

$538

$311

$155

$420

$530

$77

$108

$58

$55

$108

$72

$19

$50

$137

$222

$135

$104

$0

$100

$200

$300

$400

$500

$600

$700

$800

2007

2008

2009

2010

2011

2012

CL&P

PSNH

WMECO

Projected Transmission Capital Expenditures

$754

$432

$663

$706

$506

$696

50

$279

$334

$291

$289

$298

$298

$125

$167

$144

$153

$172

$252

$34

$35

$40

$34

$34

$34

$65

$57

$61

$60

$62

$68

$0

$100

$200

$300

$400

$500

$600

$700

2007

2008

2009

2010

2011

2012

CL&P

PSNH*

WMECO

Yankee Gas

*PSNH Generation = $36 million in 2007; $63 million in 2008; $44

million in 2009;

$51 million in 2010; $66 million in 2011; and $142 million in 2012

Projected Distribution and Generation Capital Expenditures

$503

$536

$593

$566

$536

$652

51

Projected Distribution and Generation

Year-End Rate Base

$1,918

$2,128

$2,305

$2,459

$2,594

$2,711

$925

$1,085

$1,176

$1,248

$1,322

$1,404

$372

$394

$424

$449

$475

$504

$666

$714

$733

$754

$779

$812

$0

$1,000

$2,000

$3,000

$4,000

$5,000

2007

2008

2009

2010

2011

2012

CL&P

PSNH

WMECO

Yankee Gas

Projected

Distribution &

Generation

Rate Base

CAGR of 7%

$3,881

$4,321

$4,638

$4,910

$5,170

$5,431

52

Projected Transmission Year-End Rate Base*

$1,221

$2,239

$2,553

$2,864

$168

$296

$307

$368

$372

$459

$80

$114

$242

$438

$564

$1,722

$2,203

$621

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

2007

2008

2009

2010

2011

2012

CL&P

PSNH

WMECO

Transmission

Rate Base

CAGR of 22%

$1,469

$2,132

$2,752

$3,045

$3,489

$3,944

*100% CWIP assumed for Springfield 115-kV Cables, NEEWS projects

53

Numerous Firms Support NU Transmission’s

Capital Program 

Poles $75M

PennSummitt Tubular LLC

Sabre Tubular Structures

TransAmerican Power Products

Thomas & Betts

Valmont

Substations  $300M

ABB

Areva

BTW

Crompton Greaves / Pauwels Group

General Electric

HICO

Mitsubishi

Siemens

Cables & Wire $375M

ABB

Alcan

LS Cable

Nehring

Nexans

Okonite

Pirelli/Prysmian

Silec/General Cable/Sagem

Southwire

Sural USA

Viscas/Fujikura

Engineering Firms $90M

American Electrical Test

Black & Veatch Corporation

Burns & McDonnell Engineering

Commonwealth Associates, Inc.

Engineering & Environmental

Consulting, LLC

L. E. Myers Co. (an MYR Group

company)

Power Engineers, Inc.

Sargent & Lundy, LLC

TRC Companies, Inc.

Construction $1.3B

Bond Brothers

E. S. Boulos (an NU company)

Hawkeye

Henkels & McCoy

KemsCo Equipment Co.

Mass. Electric Construction Co.  

(A Kiewit company)

McPhee

MJ Electric (Quanta)

New River Electrical Corp.

PAR Electrical Contractors, Inc.

(Quanta)

S. M. Electric Co.

Thiro USA

W. A. Chester