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LONG-TERM DEBT

12 Months Ended

Dec. 31, 2013

Notes To Consolidated Financial Statements [Abstract]

9. LONG-TERM DEBT

Details of long-term debt outstanding are as follows:


CL&P		As of December 31,
(Millions of Dollars)		2013		2012
First Mortgage Bonds:
	7.875% 1994 Series D due 2024	$	139.8	$	139.8
	4.800% 2004 Series A due 2014		150.0		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⁽¹⁾		400.0		-
Total First Mortgage Bonds			2,319.8		1,919.8
Pollution Control Notes:
	4.375% Fixed Rate Tax Exempt due 2028		120.5		120.5
	1.25% Fixed Rate Tax Exempt due 2028⁽²⁾		-		125.0
	1.55% Fixed Rate Tax Exempt due 2031⁽²⁾		62.0		62.0
Total Pollution Control Notes			182.5		307.5
Total First Mortgage Bonds and Pollution Control Notes			2,502.3		2,227.3
Fees and Interest due for Spent Nuclear Fuel Disposal Costs			244.4		244.3
CL&P Commercial Paper and Revolver Borrowings⁽¹⁾			-		394.8
Less Amounts due Within One Year			(150.0)		(125.0)
Unamortized Premiums and Discounts, Net			(5.5)		(3.6)
CL&P Long-Term Debt		$	2,591.2	$	2,737.8

NSTAR Electric		As of December 31,
(Millions of Dollars)		2013		2012
Debentures:
	4.875% due 2014	$	300.0	$	300.0
	5.75% due 2036		200.0		200.0
	5.625% due 2017		400.0		400.0
	5.50% due 2040		300.0		300.0
	2.375% due 2022		400.0		400.0
	Variable Rate due 2016⁽³⁾		200.0		-
Total Debentures			1,800.0		1,600.0
Bonds:
	7.375% Tax Exempt Sewage Facility Revenue Bonds, due 2015		6.4		8.0
Less Amounts due Within One Year			(301.7)		(1.7)
Unamortized Premiums and Discounts, Net			(5.3)		(5.4)
NSTAR Electric Long-Term Debt		$	1,499.4	$	1,600.9

PSNH		As of December 31,
(Millions of Dollars)		2013		2012
First Mortgage Bonds:
	5.25% 2004 Series L due 2014	$	50.0	$	50.0
	5.60% 2005 Series M due 2035		50.0		50.0
	6.15% 2007 Series N due 2017		70.0		70.0
	6.00% 2008 Series O due 2018		110.0		110.0
	4.50% 2009 Series P due 2019		150.0		150.0
	4.05% 2011 Series Q due 2021		122.0		122.0
	3.20% 2011 Series R due 2021		160.0		160.0
	3.50% 2013 Series S due 2023⁽⁴⁾		250.0		-
Total First Mortgage Bonds			962.0		712.0
Pollution Control Revenue Bonds:
	4.75% - 5.45% Tax Exempt Series B and C due 2021⁽⁴⁾		-		198.2
	Adjustable Rate Series A due 2021		89.3		89.3
Total Pollution Control Revenue Bonds			89.3		287.5
Less Amounts due Within One Year			(50.0)		-
Unamortized Premiums and Discounts, Net			(2.3)		(1.6)
PSNH Long-Term Debt		$	999.0	$	997.9


WMECO		As of December 31,
(Millions of Dollars)		2013		2012
Other Notes:
	5.00% Senior Notes Series A, due 2013⁽⁵⁾	$	-	$	55.0
	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⁽⁵⁾		80.0		-
Total Other Notes			565.0		540.0
Fees and Interest due for Spent Nuclear Fuel Disposal Costs			57.3		57.3
Less Amounts due Within One Year⁽⁵⁾			-		(55.0)
Unamortized Premiums and Discounts, Net			7.1		8.0
WMECO Long-Term Debt		$	629.4	$	550.3

OTHER		As of December 31,
(Millions of Dollars)		2013			2012
Yankee Gas - First Mortgage Bonds:
	8.48% Series B due 2022	$	20.0	$	20.0
	4.80% Series G due 2014⁽⁶⁾		75.0		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
Total First Mortgage Bonds			345.0		345.0
Unamortized Premium			0.7		0.8
Yankee Gas Long-Term Debt			345.7		345.8

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:
	5.65% Senior Notes Series C due 2013 (NU Parent)⁽⁷⁾		-		250.0
	Variable Rate Senior Notes Series D due 2013 (NU Parent)⁽⁷⁾		-		300.0
	1.45% Senior Notes Series E due 2018 (NU Parent)⁽⁷⁾		300.0		-
	2.80% Senior Notes Series F due 2023 (NU Parent)⁽⁷⁾		450.0		-
	4.50% Debentures due 2019 (NU Parent)		350.0		350.0
	NU Commercial Paper Borrowings⁽⁶⁾		25.0		-
	Spent Nuclear Fuel Obligation (CYAPC)		179.4		179.3
Total Other Long-Term Debt			1,304.4		1,079.3
Fair Value Adjustment⁽⁸⁾			230.7		259.9
Less Amounts due Within One Year			-		(550.0)
Less Fair Value Adjustment - Current Portion⁽⁸⁾			(31.7)		(31.7)
Unamortized Premiums and Discounts, Net			(1.3)		-
Total NU Long-Term Debt		$	7,776.8	$	7,200.2

On January 15, 2013, CL&P issued $400 million of 2.50 percent Series A First and Refunding Mortgage Bonds with a maturity date of January 15, 2023. The proceeds, net of issuance costs, were used to pay short-term borrowings outstanding under the CL&P credit agreement of $89 million and the NU commercial paper program of $305.8 million. As a result and in accordance with applicable accounting guidance, these amounts were classified as Long-Term Debt on the balance sheet as of December 31, 2012.
In April 2012, CL&P remarketed $62 million of tax-exempt PCRBs for a three-year period. The PCRBs, which mature on May 1, 2031, carry a coupon rate of 1.55 percent during the current three-year fixed rate period and are subject to mandatory tender for purchase on April 1, 2015. On September 3, 2013, CL&P redeemed at par $125 million of 1.25 percent Series B 2011 PCRBs, which were subject to mandatory tender for purchase, using short-term debt.
On May 17, 2013, NSTAR Electric issued $200 million of three-year floating rate debentures due in May 2016. The proceeds, net of issuance costs, were used to repay commercial paper borrowings and for general corporate purposes. The debentures have a coupon rate reset quarterly based on 3-month LIBOR plus a credit spread of 0.24 percent. The interest rate as of December 31, 2013 was 0.478 percent.
On May 1, 2013, PSNH redeemed at par approximately $109 million of the 2001 Series C PCRBs that were due to mature in 2021 using short-term debt. On November 14, 2013, PSNH issued $250 million of 3.50 percent Series S First Mortgage Bonds due in 2023. On December 23, 2013, PSNH redeemed approximately $89 million of the Series B PCRBs that were due to mature in 2021. The proceeds of the Series S issuance were used to repay the short term debt used to redeem the $109 million 2001 Series C PCRBs and to redeem the $89 million Series B PCRBs and pay the associated call premium. The remaining proceeds of the offering were used to refinance short-term debt.
On September 1, 2013, WMECO repaid at maturity the $55 million Series A Senior Notes using short-term debt. On November 15, 2013, WMECO issued $80 million of 3.88 percent Series G Senior Notes due in 2023. The proceeds, net of issuance costs, were used to pay short-term borrowings and for other working capital purposes.
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 Series G $75 million First Mortgage Bonds that matured on January 1, 2014 and to pay $25 million in short-term borrowings. As a result and in accordance with applicable accounting guidance, these amounts were classified as Long-Term Debt on NU's balance sheet as of December 31, 2013.
On May 13, 2013, NU parent issued $750 million of Senior Notes, consisting of $300 million of 1.45 percent Series E Senior Notes due to mature in 2018 and $450 million of 2.80 percent Series F Senior Notes due to mature in 2023. The proceeds, net of issuance costs, were used to repay the NU parent $250 million Series C Senior Notes at a coupon rate of 5.65 percent that matured on June 1, 2013 and the NU parent $300 million floating rate Series D Senior Notes that matured on September 20, 2013. The remaining net proceeds were used to repay commercial paper program borrowings and for working capital purposes.
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 2014 through 2018 and thereafter are shown below. These amounts exclude fees and interest due for spent nuclear fuel disposal costs, net unamortized premiums and discounts, and other fair value adjustments as of December 31, 2013:

(Millions of Dollars)	NU		CL&P		NSTAR Electric		PSNH		WMECO
2014	$	576.7	$	150.0	$	301.7	$	50.0	$	-
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		-
Thereafter		5,031.6		1,640.3		900.0		821.3		515.0
Total	$	7,580.0	$	2,502.3	$	1,806.4	$	1,051.3	$	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 is subject to mandatory tender for purchase on April 1, 2015, 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. The interest rate as of December 31, 2013 was 0.088 percent.

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 applicable to all of Yankee Gas' outstanding first mortgage bond series. The cross-default provisions on Yankee Gas' Series B Bonds would be triggered if Yankee Gas were to default on a payment due on indebtedness in excess of $2 million. The cross-default provisions on all other series of Yankee Gas' first mortgage bonds would be triggered if Yankee Gas were to default in a payment due on indebtedness in excess of $10 million. No other debt issuances contain cross-default provisions as of December 31, 2013.

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 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 December 31, 2013. Fees 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 $350.3 million and $350 million ($177.9 million and $177.8 million for CL&P and $41.7 million and $41.7 million for WMECO) as of December 31, 2013 and 2012, 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 6, "Marketable Securities," to the financial statements.