XML 130 R14.htm IDEA: XBRL DOCUMENT

LONG-TERM DEBT

12 Months Ended

Dec. 31, 2014

Notes To Consolidated Financial Statements [Abstract]

8. LONG-TERM DEBT

Details of long-term debt outstanding are as follows:

CL&P		As of December 31,
(Millions of Dollars)		2014		2013
First Mortgage Bonds:
	7.875% 1994 Series D due 2024	$	139.8	$	139.8
	4.800% 2004 Series A due 2014 ⁽¹⁾		-		150.0
	5.750% 2004 Series B due 2034		130.0		130.0
	5.000% 2005 Series A due 2015		100.0		100.0
	5.625% 2005 Series B due 2035		100.0		100.0
	6.350% 2006 Series A due 2036		250.0		250.0
	5.375% 2007 Series A due 2017		150.0		150.0
	5.750% 2007 Series B due 2037		150.0		150.0
	5.750% 2007 Series C due 2017		100.0		100.0
	6.375% 2007 Series D due 2037		100.0		100.0
	5.650% 2008 Series A due 2018		300.0		300.0
	5.500% 2009 Series A due 2019		250.0		250.0
	2.500% 2013 Series A due 2023		400.0		400.0
	4.300% 2014 Series A due 2044 ⁽²⁾		250.0		-
Total First Mortgage Bonds			2,419.8		2,319.8
Pollution Control Revenue Bonds:
	4.375% Fixed Rate Tax Exempt due 2028		120.5		120.5
	1.550% Fixed Rate Tax Exempt due 2031 ⁽³⁾		62.0		62.0
Total Pollution Control Revenue Bonds			182.5		182.5
Spent Nuclear Fuel Obligation			244.5		244.4
Less Amounts due Within One Year			(162.0)		(150.0)
Unamortized Premiums and Discounts, Net			(4.8)		(5.5)
CL&P Long-Term Debt		$	2,680.0	$	2,591.2

NSTAR Electric		As of December 31,
(Millions of Dollars)		2014		2013
Debentures:
	4.875% due 2014 ⁽⁴⁾	$	-	$	300.0
	5.750% due 2036		200.0		200.0
	5.625% due 2017		400.0		400.0
	5.500% due 2040		300.0		300.0
	2.375% due 2022		400.0		400.0
	Variable Rate due 2016 ⁽⁵⁾		200.0		200.0
	4.400% due 2044 ⁽⁴⁾		300.0		-
Total Debentures			1,800.0		1,800.0
Bonds:
	7.375% Tax Exempt Sewage Facility Revenue Bonds, due 2015		4.7		6.4
Total Bonds			4.7		6.4
Less Amounts due Within One Year			(4.7)		(301.7)
Unamortized Premiums and Discounts, Net			(7.3)		(5.3)
NSTAR Electric Long-Term Debt		$	1,792.7	$	1,499.4

PSNH		As of December 31,
(Millions of Dollars)		2014		2013
First Mortgage Bonds:
	5.25% Series L due 2014 ⁽⁶⁾	$	-	$	50.0
	5.60% Series M due 2035		50.0		50.0
	6.15% Series N due 2017		70.0		70.0
	6.00% Series O due 2018		110.0		110.0
	4.50% Series P due 2019		150.0		150.0
	4.05% Series Q due 2021		122.0		122.0
	3.20% Series R due 2021		160.0		160.0
	3.50% Series S due 2023 ⁽⁷⁾		325.0		250.0
Total First Mortgage Bonds			987.0		962.0
Pollution Control Revenue Bonds:
	Adjustable Rate Tax Exempt Series A due 2021		89.3		89.3
Total Pollution Control Revenue Bonds			89.3		89.3
Less Amounts due Within One Year			-		(50.0)
Unamortized Premiums and Discounts, Net			-		(2.3)
PSNH Long-Term Debt		$	1,076.3	$	999.0

WMECO		As of December 31,
(Millions of Dollars)		2014		2013
Notes:
	5.90% Senior Notes Series B, due 2034	$	50.0	$	50.0
	5.24% Senior Notes Series C, due 2015		50.0		50.0
	6.70% Senior Notes Series D, due 2037		40.0		40.0
	5.10% Senior Notes Series E, due 2020		95.0		95.0
	3.50% Senior Notes Series F, due 2021		250.0		250.0
	3.88% Senior Notes Series G, due 2023		80.0		80.0
Total Notes			565.0		565.0
Spent Nuclear Fuel Obligation			57.4		57.3
Less Amounts due Within One Year			(50.0)		-
Unamortized Premiums and Discounts, Net			6.1		7.1
WMECO Long-Term Debt		$	578.5	$	629.4

OTHER		As of December 31,
(Millions of Dollars)		2014			2013
Yankee Gas - First Mortgage Bonds:
	8.48% Series B due 2022	$	20.0	$	20.0
	4.80% Series G due 2014 ⁽⁸⁾		-		75.0
	5.26% Series H due 2019		50.0		50.0
	5.35% Series I due 2035		50.0		50.0
	6.90% Series J due 2018		100.0		100.0
	4.87% Series K due 2020		50.0		50.0
	4.82% Series L due 2044 ⁽⁸⁾		100.0		-
Total First Mortgage Bonds			370.0		345.0
Unamortized Premium			0.6		0.7
Yankee Gas Long-Term Debt			370.6		345.7

NSTAR Gas - First Mortgage Bonds:
	9.95% Series J due 2020		25.0		25.0
	7.11% Series K due 2033		35.0		35.0
	7.04% Series M due 2017		25.0		25.0
	4.46% Series N due 2020		125.0		125.0
NSTAR Gas Long-Term Debt			210.0		210.0

Other - Notes and Debentures:
	1.45% Senior Notes Series E due 2018 (NU Parent)		300.0		300.0
	2.80% Senior Notes Series F due 2023 (NU Parent)		450.0		450.0
	4.50% Debentures due 2019 (NU Parent)		350.0		350.0
	NU Commercial Paper Borrowings^{(8) (9)}		446.3		25.0
	Spent Nuclear Fuel Obligation (CYAPC)		179.4		179.4
Total Other Notes and Debentures			1,725.7		1,304.4
Fair Value Adjustment ⁽¹⁰⁾			202.3		230.7
Less Amounts due Within One Year			-		-
Less Fair Value Adjustment - Current Portion ⁽¹⁰⁾			(28.9)		(31.7)
Unamortized Premiums and Discounts, Net			(1.2)		(1.3)
Total Other Long-Term Debt		$	2,478.5	$	2,057.8

Total NU Long-Term Debt		$	8,606.0	$	7,776.8

On September 15, 2014, CL&P repaid at maturity the $150 million of 4.80 percent 2004 Series A First Mortgage Bonds, using short-term borrowings.
On April 24, 2014, CL&P issued $250 million of 4.30 percent 2014 Series A First Mortgage Bonds, due to mature in 2044. The proceeds, net of issuance costs, were used to repay short-term borrowings.
On February 12, 2015, CL&P notified the trustee that it intends to purchase and cancel the bonds on April 1, 2015, after they have been tendered by the bondholders.
On March 7, 2014, NSTAR Electric issued $300 million of 4.40 percent debentures, due to mature in 2044. The proceeds, net of issuance costs, were used to repay the $300 million of 4.875 percent debentures that matured on April 15, 2014.
As of December 31, 2014 and 2013, the interest rate was 0.4721 percent and 0.478 percent, respectively.
On July 15, 2014, PSNH repaid at maturity the $50 million of 5.25 percent Series L First Mortgage Bonds using short-term borrowings.
On October 14, 2014, PSNH issued $75 million of first mortgage bonds at a yield of 3.144 percent due to mature in 2023. The first mortgage bonds are part of the same series of PSNH's existing 3.50 percent Series S First Mortgage Bonds that were initially issued in November 2013. The proceeds, net of issuance costs, were used to repay short-term borrowings.
On January 2, 2014, Yankee Gas issued $100 million of 4.82 percent Series L First Mortgage Bonds, due to mature in 2044. The proceeds, net of issuance costs, were used to repay the $75 million 4.80 percent Series G First Mortgage Bonds that matured on January 1, 2014 and to pay $25 million in short-term borrowings. As the debt issuance refinanced short-term debt, these amounts were classified as Long-Term Debt on NU's balance sheet as of December 31, 2013.
On January 15, 2015, NU parent issued $150 million of 1.60 percent Series G Senior Notes due to mature in 2018 and $300 million of 3.15 percent Series H Notes, due to mature in 2025. The proceeds, net of issuance costs, were used to repay short-term borrowings outstanding under the NU commercial paper program. As the debt issuances refinanced short-term debt, the short-term debt was classified as Long-Term Debt as of December 31, 2014.
Amount relates to the purchase price adjustment required to record the NSTAR long-term debt at fair value on the date of the merger.

Long-term debt maturities, mandatory tender payments and cash sinking fund requirements on debt outstanding for the years 2015 through 2019 and thereafter are shown below. These amounts exclude the spent nuclear fuel obligation, net unamortized premiums and discounts, and other fair value adjustments as of December 31, 2014:

(Millions of Dollars)	NU		CL&P		NSTAR Electric		PSNH		WMECO
2015	$	216.7	$	162.0	$	4.7	$	-	$	50.0
2016		200.0		-		200.0		-		-
2017		745.0		250.0		400.0		70.0		-
2018		810.0		300.0		-		110.0		-
2019		800.0		250.0		-		150.0		-
Thereafter		4,956.6		1,640.3		1,200.0		746.3		515.0
Total	$	7,728.3	$	2,602.3	$	1,804.7	$	1,076.3	$	565.0

The utility plant of CL&P, PSNH, Yankee Gas and NSTAR Gas is subject to the lien of each company's respective first mortgage bond indenture. The NSTAR Electric, WMECO and NU parent debt is unsecured.

CL&P's obligation to repay each series of PCRBs is secured by first mortgage bonds. Each such series of first mortgage bonds contains similar terms and provisions as the applicable series of PCRBs. If CL&P fails to meet its obligations under the first mortgage bonds, then the holder of the first mortgage bonds (the issuer of the PCRBs) would have rights under the first mortgage bonds. CL&P's $62 million tax-exempt PCRBs, which are subject to mandatory tender for purchase on April 1, 2015 and carry a coupon rate of 1.55 percent during the current three-year fixed rate period, cannot be redeemed prior to its tender date. CL&P's $120.5 million tax-exempt PCRBs will be subject to redemption at par on or after September 1, 2021. All other long-term debt securities are subject to make-whole provisions.

PSNH's obligation to repay the PCRBs is secured by first mortgage bonds and bond insurance. The first mortgage bonds contain similar terms and provisions as the PCRBs. If PSNH fails to meet its obligations under the first mortgage bonds, then the holder of the first mortgage bonds (the issuer of the PCRBs) would have rights under the first mortgage bonds. The PSNH Series A tax-exempt PCRBs are currently callable at 100 percent of par. The PCRBs bear interest at a rate that is periodically set pursuant to auctions. PSNH is not obligated to purchase these PCRBs, which mature in 2021, from the remarketing agent. As of December 31, 2014 and 2013, the interest rate was 0.175 percent and 0.088 percent, respectively.

The long-term debt agreements provide that NU and certain of its subsidiaries must comply with certain covenants as are customarily included in such agreements, including a minimum equity requirement for NSTAR Gas. Under the minimum equity requirement, the outstanding long-term debt of NSTAR Gas must not exceed equity.

Yankee Gas has certain long-term debt agreements that contain cross-default provisions. No other debt issuances contain cross-default provisions as of December 31, 2014.

On August 27, 2014, PURA approved CL&P's request to extend the authorization period for issuance of up to $366.4 million in long-term debt from December 31, 2014 to December 31, 2015.

On October 3, 2014, FERC granted authorization to allow NPT to issue short-term and long-term debt securities in an aggregate amount not to exceed $500 million outstanding at any one time, effective December 31, 2014 through December 31, 2016.

On November 26, 2014, PURA approved Yankee Gas' request to extend the authorization period for issuance of up to $200 million in long-term debt from December 31, 2014 to December 31, 2015.

On January 12, 2015, NSTAR Gas filed an application with the DPU requesting authorization to issue up to $100 million in long-term debt for the period ending December 31, 2015.

Spent Nuclear Fuel Obligation: Under the Nuclear Waste Policy Act of 1982, CL&P and WMECO must pay the DOE for the costs of disposal of spent nuclear fuel and high-level radioactive waste for the period prior to the sale of their ownership shares in the Millstone nuclear power stations. The Millstone Nuclear Generating station was made up of Millstone 1, Millstone 2, and Millstone 3 and all three units were sold in March 2001.

The DOE is responsible for the selection and development of repositories for, and the disposal of, spent nuclear fuel and high-level radioactive waste. For nuclear fuel used to generate electricity prior to April 7, 1983 (Prior Period Spent Nuclear Fuel) for CL&P and WMECO, an accrual has been recorded for the full liability, and payment must be made by CL&P and WMECO to the DOE prior to the first delivery of spent fuel to the DOE. After the sale of Millstone, CL&P and WMECO remained responsible for their share of the disposal costs associated with the Prior Period Spent Nuclear Fuel. Until such payment to the DOE is made, the outstanding liability will continue to accrue interest at the 3-month Treasury bill yield rate. In addition, as a result of consolidating CYAPC, NU has consolidated $179.4 million in additional spent nuclear fuel obligations, including interest, as of both December 31, 2014 and 2013. The obligation due to the DOE for the disposal of CL&P's and WMECO's Prior Period Spent Nuclear Fuel and CYAPC's spent nuclear fuel obligation include accumulated interest costs of $350.4 million and $350.3 million ($178 million and $177.9 million for CL&P and $41.8 million and $41.7 million for WMECO) as of December 31, 2014 and 2013, respectively.

WMECO and CYAPC maintain trusts to fund amounts due to the DOE for the disposal of spent nuclear fuel. For further information on these trusts, see Note 5, "Marketable Securities," to the financial statements.