ASSET RETIREMENT OBLIGATIONS

12 Months Ended

Dec. 31, 2011

Notes To Consolidated Financial Statements [Abstract]

Asset Retirement Obligation Disclosure [Text Block]

6.       ASSET RETIREMENT OBLIGATIONS

In accordance with accounting guidance for conditional AROs, NU, including CL&P, PSNH and WMECO, recognizes a liability for the fair value of an ARO on the obligation date if the liability's fair value can be reasonably estimated and is conditional on a future event. Settlement dates and future costs are reasonably estimated when sufficient information becomes available. Management has identified various categories of AROs, primarily certain assets containing asbestos and hazardous contamination and has performed fair value calculations, reflecting expected probabilities for settlement scenarios.

The fair value of an ARO is recorded as a liability in Other Long-Term Liabilities with an offset included in Property, Plant and Equipment, Net on the accompanying consolidated balance sheets. As the Regulated companies are rate-regulated on a cost-of-service basis, these companies apply regulatory accounting guidance and the costs associated with the Regulated companies' AROs are included in Other Regulatory Assets as of December 31, 2011 and 2010. The ARO assets are depreciated, and the ARO liabilities are accreted over the estimated life of the obligation with corresponding credits recorded as accumulated depreciation and ARO liabilities, respectively. Both the depreciation and accretion were recorded as increases to Regulatory Assets on the accompanying consolidated balance sheets as of December 31, 2011and 2010.For further information, see Note 2, "Regulatory Accounting," to the consolidated financial statements.

A reconciliation of the beginning and ending carrying amounts of Regulated companies' ARO liabilities are as follows:
NU	As of December 31,
(Millions of Dollars)	2011		2010
Balance as of Beginning of Year	$	53.3	$	50.6
Liabilities Incurred During the Year		2.1		0.2
Liabilities Settled During the Year		(0.8)		(1.2)
Accretion		3.5		3.3
Revisions in Estimated Cash Flows		(1.9)		0.4
Balance as of End of Year	$	56.2	$	53.3
	As of December 31,
	2011						2010
(Millions of Dollars)	CL&P		PSNH		WMECO		CL&P		PSNH		WMECO
Balance as of Beginning of Year	$	29.3	$	17.6	$	3.6	$	28.6	$	16.4	$	3.3
Liabilities Incurred During the Year		1.7		0.2		0.2		0.1		-		0.1
Liabilities Settled During the Year		(0.8)		-		-		(1.2)		-		-
Accretion		2.0		1.1		0.2		1.8		1.1		0.2
Revisions in Estimated Cash Flows		-		(1.9)		-		-		0.1		-
Balance as of End of Year	$	32.2	$	17.0	$	4.0	$	29.3	$	17.6	$	3.6