REGULATORY ACCOUNTING

9 Months Ended

Sep. 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 September 30, 2013		As of December 31, 2012
(Millions of Dollars)	NU		NU
Benefit Costs	$	2,256.0	$	2,452.1
Regulatory Assets Offsetting Derivative Liabilities		770.3		885.6
Goodwill		531.1		537.6
Storm Restoration Costs		621.0		547.7
Income Taxes, Net		587.5		516.2
Securitized Assets		37.4		232.6
Contractual Obligations		170.9		217.6
Buy Out Agreements for Power Contracts		76.0		92.9
Regulatory Tracker Deferrals		163.3		190.1
Asset Retirement Obligations		93.0		88.8
Other Regulatory Assets		50.1		76.2
Total Regulatory Assets		5,356.6		5,837.4
Less: Current Portion		474.2		705.0
Total Long-Term Regulatory Assets	$	4,882.4	$	5,132.4

		As of September 30, 2013								As of December 31, 2012
				NSTAR								NSTAR
(Millions of Dollars)		CL&P		Electric		PSNH		WMECO		CL&P		Electric		PSNH		WMECO
Benefit Costs		$	509.3	$	824.3	$	199.6	$	103.8	$	563.2	$	781.2	$	223.7	$	116.0
Regulatory Assets Offsetting
	Derivative Liabilities		755.3		11.6		0.3		-		866.2		14.9		-		3.0
Goodwill			-		455.9		-		-		-		461.5		-		-
Storm Restoration Costs			439.4		114.0		27.9		39.7		413.9		55.8		34.5		43.5
Income Taxes, Net			385.3		84.8		36.5		42.1		367.5		47.1		36.2		31.0
Securitized Assets			-		37.4		-		-		-		205.1		19.7		7.8
Contractual Obligations			20.0		6.4		-		4.6		64.0		22.8		-		14.9
Buy Out Agreements for Power Contracts			-		70.1		5.9		-		-		85.9		7.0		-
Regulatory Tracker Deferrals			-		83.6		52.5		21.5		12.2		71.4		49.3		31.9
Asset Retirement Obligations			31.1		30.7		14.7		3.7		29.4		29.4		14.2		3.5
Other Regulatory Assets			28.7		9.2		31.7		17.2		27.9		16.9		29.4		12.6
Total Regulatory Assets			2,169.1		1,728.0		369.1		232.6		2,344.3		1,792.0		414.0		264.2
Less: Current Portion			147.1		189.8		67.7		37.9		185.9		347.1		62.9		42.4
Total Long-Term Regulatory Assets		$	2,022.0	$	1,538.2	$	301.4	$	194.7	$	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, Storm Sandy and the February 2013 blizzard. For PSNH, costs incurred associated with these storms are recorded in Other Long-Term Assets. The storm restoration cost regulatory asset balance at PSNH primarily reflects costs incurred for storms in 2008 and 2010, which are currently being recovered in rates. Management believes the storm restoration costs meet the criteria for specific cost recovery in Connecticut, Massachusetts and New Hampshire and as a result, are probable of recovery. Each operating company is seeking recovery of these deferred storm restoration costs through its applicable regulatory recovery process.

Regulatory Costs in Other Long-Term Assets: The Regulated companies had $95.1 million ($3.4 million for CL&P, $31.3 million for NSTAR Electric, $37.3 million for PSNH, and $7.9 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 September 30, 2013 and December 31, 2012, respectively, which were included in Other Long-Term Assets on the balance sheets. These amounts represent incurred costs for which specific recovery has not yet been approved 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 September 30, 2013		As of December 31, 2012
(Millions of Dollars)	NU		NU
Cost of Removal	$	434.3	$	440.8
Regulatory Tracker Deferrals		168.6		95.1
AFUDC - Transmission		68.3		70.0
Other Regulatory Liabilities		73.9		68.4
Total Regulatory Liabilities		745.1		674.3
Less: Current Portion		224.4		134.1
Total Long-Term Regulatory Liabilities	$	520.7	$	540.2

	As of September 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	$	31.2	$	247.2	$	49.8	$	-	$	44.2	$	240.3	$	51.2	$	-
Regulatory Tracker Deferrals		73.2		51.0		10.7		22.1		39.1		14.4		20.4		19.0
AFUDC - Transmission		55.0		4.0		-		9.3		56.6		4.1		-		9.3
Other Regulatory Liabilities		30.6		31.3		15.8		2.9		16.5		32.9		3.8		2.4
Total Regulatory Liabilities		190.0		333.5		76.3		34.3		156.4		291.7		75.4		30.7
Less: Current Portion		82.0		82.5		23.4		22.4		32.1		47.5		23.0		21.0
Total Long-Term Regulatory Liabilities	$	108.0	$	251.0	$	52.9	$	11.9	$	124.3	$	244.2	$	52.4	$	9.7