LEASES

Eversource, including CL&P, NSTAR Electric, PSNH and WMECO, has entered into lease agreements, some of which are capital leases, for the use of data processing and office equipment, vehicles, service centers, and office space. In addition, CL&P, NSTAR Electric, PSNH and WMECO incur costs associated with leases entered into by other Eversource subsidiaries, which include Eversource Service and Rocky River Realty Company, and are included below in their respective operating lease rental expenses and future minimum rental payments. These intercompany lease amounts are eliminated on an Eversource consolidated basis. The provisions of the Eversource, CL&P, NSTAR Electric, PSNH, and WMECO lease agreements generally contain renewal options. Certain lease agreements contain payments impacted by the commercial paper rate plus a credit spread or the consumer price index.

Operating lease rental payments charged to expense are as follows:



(Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		WMECO
2016	$	12.1	$	12.5	$	9.3	$	2.9	$	2.1
2015	12.1		12.5		9.6		2.8		2.2
2014	14.3		6.0		7.8		1.5		1.2

Future minimum rental payments, excluding executory costs, such as property taxes, state use taxes, insurance, and maintenance, under long-term noncancelable leases, as of December 31, 2016 are as follows:



Operating Leases (Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH		WMECO
2017	$	14.1	$	2.0	$	9.0	$	0.9	$	0.5
2018	10.6		1.3		7.0		0.6		0.3
2019	8.7		1.0		5.8		0.5		0.3
2020	7.0		0.7		4.8		0.4		0.2
2021	6.0		0.6		4.2		0.3		0.2
Thereafter	10.4		1.4		6.7		0.8		0.4
Future minimum lease payments	$	56.8	$	7.0	$	37.5	$	3.5	$	1.9



Capital Leases (Millions of Dollars)	Eversource		CL&P		NSTAR Electric		PSNH
2017	$	2.3	$	1.9	$	0.2	$	0.2
2018	2.3		2.0		0.2		0.1
2019	2.2		2.0		0.2		—
2020	2.2		2.0		0.2		—
2021	1.7		1.4		0.3		—
Thereafter	1.1		—		1.1		—
Future minimum lease payments	11.8		9.3		2.2		0.3
Less amount representing interest	2.9		2.5		0.4		—
Present value of future minimum lease payments	$	8.9	$	6.8	$	1.8	$	0.3

CL&P entered into certain contracts for the purchase of energy that qualify as leases. These contracts do not have minimum lease payments and therefore are not included in the tables above. However, such contracts have been included in the contractual obligations table in Note 11B, "Commitments and Contingencies - Long-Term Contractual Arrangements," to the financial statements.