EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2012

Notes To Consolidated Financial Statements [Abstract]

Earnings Per Share [Text Block]

14.       EARNINGS PER SHARE (NU)

Basic EPS is computed based upon the monthly weighted average number of common shares outstanding during each period. Diluted EPS is computed on the basis of the monthly weighted average number of common shares outstanding plus the potential dilutive effect if certain securities are converted into common shares. For the three and six months ended June 30, 2012, there were 17,065 and 8,533, respectively, share awards excluded from the computation as these awards were antidilutive. There were no antidilutive share awards outstanding for the three and six months ended June 30, 2011.

The following table sets forth the components of basic and diluted EPS:
		For the Three Months Ended				For the Six Months Ended
(Millions of Dollars, except share information)		June 30, 2012		June 30, 2011		June 30, 2012		June 30, 2011
Net Income Attributable to Controlling Interest		$	44.3	$	77.3	$	143.6	$	191.4
Weighted Average Common Shares Outstanding:
	Basic		301,047,753		177,347,374		239,551,735		177,267,791
	Dilutive Effect		769,131		279,618		575,434		286,204
	Diluted		301,816,884		177,626,992		240,127,169		177,553,995
Basic and Diluted EPS		$	0.15	$	0.44	$	0.60	$	1.08

On April 10, 2012, NU issued approximately 136 million common shares as a result of the merger with NSTAR, which are reflected in weighted average common shares outstanding as of June 30, 2012.

RSUs and performance shares are included in basic weighted average common shares outstanding as of the date that all necessary vesting conditions have been satisfied. The dilutive effect of unvested RSUs and performance shares is calculated using the treasury stock method. Assumed proceeds of the units under the treasury stock method consist of the remaining compensation cost to be recognized and a theoretical tax benefit. The theoretical tax benefit is calculated as the tax impact of the intrinsic value of the units (the difference between the market value of the average units outstanding for the period, using the average market price during the period, and the grant date market value).

The dilutive effect of stock options to purchase common shares is also calculated using the treasury stock method. Assumed proceeds for stock options consist of cash proceeds that would be received upon exercise, and a theoretical tax benefit. The theoretical tax benefit is calculated as the tax impact of the intrinsic value of the stock options (the difference between the market value of the average stock options outstanding for the period, using the average market price during the period, and the exercise price).