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ES · Eversource Energy

37 filings

10-K

ES 10-K Annual Reports

Eversource Energy - 37 annual reports

Filing record · 2016–202610-K1110-Q338-K126

2025
Eversource Energy Annual Report, Year Ended Dec 31, 2025
Eversource Energy (ES) reported a significant rebound in financial performance for 2025, with net income attributable to common shareholders reaching $1.69 billion, or $4.56 per diluted share, a substantial increase from $811.7 million, or $2.27 per diluted share, in 2024. Excluding specific charges related to offshore wind investments and the pending sale of its water business, the company's non-GAAP earnings were $1.77 billion, or $4.76 per share, compared to $1.63 billion, or $4.57 per share, in the prior year. This improvement was driven by higher revenues across its electric distribution, electric transmission, and natural gas distribution segments, largely due to rate increases and investments in infrastructure. Looking ahead, Eversource projects 2026 non-GAAP earnings per share to be between $4.80 and $4.95, with a long-term EPS growth rate target of 5-7% through 2030. The company also reported robust operating cash flows and managed its liquidity effectively, issuing significant amounts of new long-term debt while repaying existing obligations. Capital expenditures are projected to be substantial, totaling $26.51 billion from 2026 through 2030, primarily focused on electric and natural gas distribution and transmission infrastructure upgrades, signaling a continued commitment to modernization and reliability.
Feb 17, 2026
2024
Eversource Energy Annual Report, Year Ended Dec 31, 2024
Eversource Energy's 2024 Form 10-K highlights a significant shift from a net loss in 2023 to a net income in 2024, primarily driven by the divestiture of its offshore wind investments and the planned sale of its water utility business, Aquarion. Excluding these significant one-time items, the company's non-GAAP earnings per share saw an increase to $4.57 in 2024 from $4.34 in 2023, indicating underlying operational growth. Eversource projects continued earnings growth for 2025 and maintains a long-term EPS growth target of 5-7% through 2029. The company plans substantial capital expenditures of $24.17 billion from 2025-2029, focusing heavily on electric distribution ($10.22 billion), electric transmission ($6.81 billion), and natural gas distribution ($6.00 billion), signaling a commitment to infrastructure improvements and modernization. The sale of Aquarion for approximately $2.4 billion is expected to close in late 2025 and will be used to reduce parent company debt, potentially improving the balance sheet and financial flexibility.
Feb 14, 2025
2023
Eversource Energy Annual Report, Year Ended Dec 31, 2023
Eversource Energy (ES) reported a net loss of $442.2 million ($1.26 per share) for the year ended December 31, 2023. This was primarily driven by a significant $1.95 billion after-tax impairment charge related to its offshore wind investments. Excluding these impairments and other charges, the company's non-GAAP earnings were $1.52 billion ($4.34 per share), an increase from $1.42 billion ($4.09 per share) in 2022, reflecting strong performance in its regulated utility businesses. The company anticipates continued growth, projecting 2024 non-GAAP earnings between $4.50 and $4.67 per share, with a long-term EPS growth rate of 5-7% for its regulated utilities through 2028. Financially, capital expenditures were substantial at $4.34 billion in 2023, supporting ongoing infrastructure investments across its electric distribution, transmission, natural gas, and water segments. The company also announced strategic initiatives, including the execution of an agreement to sell its 50% interests in the South Fork Wind and Revolution Wind projects for approximately $1.1 billion and an exploratory assessment to potentially monetize its water distribution business. These moves aim to strengthen the company's financial position and focus on its core regulated operations.
Feb 14, 2024
2022
Eversource Energy Annual Report, Year Ended Dec 31, 2022
Eversource Energy (ES) reported strong financial performance for the year ended December 31, 2022, with GAAP earnings per share of $4.05 and non-GAAP earnings per share of $4.09. The company's regulated utility businesses, spanning electric distribution, transmission, and natural gas distribution, showed solid growth driven by rate increases, capital investments in infrastructure, and the absence of significant one-time charges that impacted the prior year. Looking ahead, Eversource provided guidance for 2023 non-GAAP earnings per share between $4.25 and $4.43, projecting a long-term EPS growth rate of 5-7%. Capital expenditure plans remain robust, with approximately $21.5 billion projected from 2023 through 2027, focused on modernizing and strengthening its regulated energy and water delivery systems. A significant strategic development is the ongoing review of the company's offshore wind investment portfolio, with potential alternatives being explored that could lead to the sale of all or part of its interest in the partnership with Ørsted.
Feb 15, 2023
2021
Eversource Energy Annual Report, Year Ended Dec 31, 2021
Eversource Energy's 2021 10-K filing reveals a stable year for its regulated utility operations, with net income attributable to common shareholders reaching $1.22 billion, a slight increase from $1.21 billion in 2020. The company continues to invest heavily in infrastructure upgrades and clean energy initiatives. The filing highlights significant capital expenditure projections for 2022-2026, totaling $18.14 billion, primarily allocated to electric and natural gas distribution and transmission segments. Notably, the company is advancing its offshore wind projects, with South Fork Wind receiving final federal approval and entering the construction phase. Regulatory matters, particularly concerning CL&P's storm cost recovery and a settlement agreement, are detailed, impacting earnings by $0.25 per share in 2021. Management expects continued earnings per share growth in the upper half of the 5-7% range through 2026.
Feb 17, 2022
2020
Eversource Energy Annual Report, Year Ended Dec 31, 2020
Eversource Energy's 2020 10-K filing highlights a year of robust operational performance and strategic growth, marked by the significant acquisition of Columbia Gas of Massachusetts' natural gas distribution business for $1.1 billion. This acquisition bolstered the company's natural gas segment, contributing positively to its overall financial results. The company demonstrated strong earnings, with a notable increase in diluted earnings per share to $3.55 compared to $2.81 in 2019, excluding acquisition-related costs. Eversource Energy also maintained a stable financial position, supported by consistent operating cash flows and access to capital markets, enabling significant capital expenditures of $2.94 billion in 2020, primarily directed towards electric and natural gas distribution and transmission infrastructure. The report emphasizes Eversource Energy's commitment to reliability, safety, and customer service across its electric, natural gas, and water utility operations. Despite challenges posed by the COVID-19 pandemic, the company effectively managed its operations, including implementing safety measures and providing customer assistance programs, with regulatory mechanisms in place to recover incremental costs. The filing also outlines significant investments in future growth areas, such as offshore wind projects, underscoring a forward-looking strategy. Overall, Eversource Energy's 2020 performance indicates a company well-positioned for continued growth, with a diversified utility portfolio, a strong regulatory environment supporting cost recovery, and strategic investments in renewable energy and infrastructure upgrades.
Feb 17, 2021
2019
Eversource Energy Annual Report, Year Ended Dec 31, 2019
Eversource Energy's (ES) 2019 Form 10-K highlights a robust operational year characterized by steady revenue growth and significant capital expenditures aimed at enhancing its energy and water infrastructure. The company reported net income attributable to common shareholders of $909.1 million ($2.81 per diluted share) for 2019, a decrease from $1.03 billion ($3.25 per diluted share) in 2018, primarily due to a substantial after-tax impairment charge of $204.4 million related to the Northern Pass Transmission (NPT) project. Excluding this charge, adjusted net income was $1.11 billion ($3.45 per diluted share). Strategically, Eversource is making significant investments in its regulated utility segments, projecting $14.19 billion in capital expenditures from 2020-2024, with a focus on electric and natural gas distribution. The company also continues to expand its clean energy portfolio, notably through its joint venture in offshore wind projects with Ørsted, and has announced a significant acquisition of Columbia Gas of Massachusetts for $1.1 billion. These strategic moves, coupled with ongoing operational improvements and a commitment to shareholder returns through increased dividends, position Eversource for continued stability and growth within the regulated utility sector.
Feb 27, 2020
2018
Eversource Energy Annual Report, Year Ended Dec 31, 2018
Eversource Energy's (ES) 2018 10-K filing reveals a strong year characterized by increased revenues and net income, driven by growth in its electric transmission and natural gas distribution segments. The company reported a net income of $1.03 billion, or $3.25 per share, a notable increase from the previous year. This performance was bolstered by consistent investments in infrastructure, particularly in electric transmission, which saw earnings rise significantly. The company is strategically positioning itself for future growth in renewable energy, evidenced by its significant partnership in offshore wind projects. However, the filing also highlights certain risks, including the potential impact of regulatory changes, the ongoing FERC ROE complaints, and the challenges faced by the Northern Pass transmission project. Despite these headwinds, Eversource continues to prioritize capital expenditures on its core regulated businesses and has projected robust earnings for 2019, indicating a positive outlook for investors focused on stability and regulated utility growth.
Feb 26, 2019
2017
Eversource Energy Annual Report, Year Ended Dec 31, 2017
Eversource Energy (ES) reported strong financial results for the fiscal year ended December 31, 2017. The company experienced growth in earnings per share, driven by its electric transmission segment's increased rate base and favorable regulatory outcomes in its electric distribution segment, including rate increases approved for CL&P and NSTAR Electric. Significant strategic moves during the year included the acquisition of Aquarion Water Company, expanding Eversource's utility service offerings. The company also continued its focus on capital expenditures for transmission and distribution infrastructure modernization and expansion. While facing challenges such as mild weather impacting sales volumes in the electric distribution segment, Eversource demonstrated resilience through its decoupled revenue mechanisms and prudent cost management. The company projects continued earnings growth for 2018, supported by its robust capital investment plan and strategic diversification.
Feb 26, 2018
2016
Eversource Energy Annual Report, Year Ended Dec 31, 2016
Eversource Energy (ES) reported solid financial results for the fiscal year ended December 31, 2016, with net income attributable to common shareholders of $942.3 million, or $2.96 per diluted share, up from $878.5 million, or $2.76 per diluted share, in 2015. This growth was driven by strong performance in the electric transmission segment, which benefited from increased investments, and a modest increase in the natural gas distribution segment, aided by rate increases and efficiency programs. The company highlighted continued investment in its infrastructure, with projected capital expenditures of approximately $9.6 billion from 2017 through 2020 across its electric and natural gas distribution and transmission segments. These investments are aimed at enhancing reliability and capacity. Eversource also emphasized its commitment to shareholder returns, announcing a 6.7% increase in its quarterly common share dividend for 2017, reflecting its confidence in its financial stability and growth prospects. Key strategic developments include the proposed merger of NSTAR Electric and WMECO, expected to streamline operations, and ongoing investments in renewable energy projects like Bay State Wind. Despite regulatory challenges, such as FERC ROE complaints impacting transmission rates, Eversource remains focused on operational efficiency and strategic growth, positioning it for continued performance in the regulated utility sector.
Feb 23, 2017
2015
Eversource Energy Annual Report, Year Ended Dec 31, 2015
Eversource Energy's 2015 10-K reports a year of steady growth in earnings and rate base, led by its regulated electric and gas utilities in Connecticut, Massachusetts and New Hampshire. GAAP net income attributable to common shareholders was $878.5 million, or $2.76 per diluted share, up from $819.5 million, or $2.58, in 2014. Excluding integration costs, non-GAAP EPS was $2.81, up about 6%. Regulated companies contributed $884.8 million of non-GAAP earnings, with electric distribution ($1.59 per share) and electric transmission ($0.96) as the largest drivers. Revenue rose 2.7% to $7.95 billion, and operating income rose 8.0% to $1.76 billion, supported by base rate increases at CL&P and higher transmission revenue requirements. The balance sheet and capital plan are central to the investment case. Eversource projects about $9.2 billion of capital expenditures from 2016 through 2019, of which about $3.9 billion is electric transmission, including the Northern Pass HVDC line, which has an estimated cost of $1.6 billion. Management also highlights the Access Northeast gas pipeline (roughly $3 billion, with Eversource owning 40%). The company issued about $1.23 billion of long-term debt in 2015, and its credit ratings improved, with S&P upgrading the parent to A. Operating cash flow fell to $1.42 billion from $1.64 billion, mainly because of a roughly $302 million DOE spent-fuel payment and timing effects. Management guided 2016 EPS to $2.90 to $3.05 and raised the quarterly dividend 6.6% to $0.445. Key risks include FERC base ROE complaints, which could reduce transmission earnings; the pending New Hampshire generation divestiture, which requires NHPUC approval; regulatory outcomes for rate cases and tracked cost recovery; and about $3.5 billion of goodwill, which passed its 2015 impairment test. Goodwill, rate-regulated asset recovery, and the ROE outcome are the main items investors should monitor.
Feb 26, 2016
2014
Eversource Energy Annual Report, Year Ended Dec 31, 2014
Eversource Energy (formerly Northeast Utilities) reported solid financial performance in its 2014 10-K filing. The company experienced revenue growth driven by increased electric and natural gas sales volumes, partly due to colder weather in early 2014. Key drivers of revenue included residential customers (53% of electric revenue) and commercial customers (40% of electric revenue). The company's strategic investments in transmission infrastructure contributed to a revenue increase in that segment. Management highlighted effective cost management, with operations and maintenance expenses decreasing primarily due to lower labor and employee-related costs, including pension costs, and reduced storm restoration expenses. The company also noted significant progress in its integration activities post-merger with NSTAR, including rebranding to Eversource Energy in February 2015. Capital expenditures were substantial, with projections of $8.4 billion from 2015-2018 focused on electric and natural gas distribution and transmission segments. The company maintains strong credit ratings and healthy liquidity, with sufficient access to capital markets to fund its operations and capital expenditures.
Feb 25, 2015
2013
Eversource Energy Annual Report, Year Ended Dec 31, 2013
Eversource Energy (ES), formerly Northeast Utilities (NU), reported strong financial performance for the year ended December 31, 2013. The company successfully integrated its merger with NSTAR, which closed in April 2012, leading to significant revenue and earnings growth. Net income attributable to controlling interest reached $786 million, or $2.49 per share, a substantial increase from the prior year. This growth was driven by improved performance across all segments, particularly electric distribution and transmission, benefiting from colder weather patterns and increased investments in infrastructure. The company also projected robust capital expenditures of $7.6 billion from 2014-2017, primarily focused on electric and natural gas distribution and electric transmission upgrades, indicating a commitment to future growth and reliability.
Feb 25, 2014
2012
Eversource Energy Annual Report, Year Ended Dec 31, 2012
Eversource Energy (ES), formerly Northeast Utilities, reported its fiscal year 2012 results, highlighting the significant impact of its merger with NSTAR, which closed on April 10, 2012. The company's financial performance was boosted by the inclusion of NSTAR's operations, contributing positively to earnings and operating revenues. Despite facing challenges such as warmer-than-normal weather impacting electric sales and increased pension and healthcare costs, Eversource Energy demonstrated resilience, with improved earnings driven by merger synergies and higher transmission segment earnings due to infrastructure investments. The company is actively investing in its infrastructure, projecting approximately $5 billion in capital expenditures from 2013 through 2015, with a substantial portion allocated to electric and natural gas distribution and electric transmission segments. Eversource Energy also addressed significant storm restoration costs related to Tropical Storm Irene, the October 2011 snowstorm, and Hurricane Sandy, which were deferred for future regulatory recovery. Regulatory proceedings, particularly concerning transmission return on equity (ROE) at FERC and storm cost recovery in various states, remain key areas to monitor for potential impacts on future earnings and financial position.
Feb 28, 2013
2011
Eversource Energy Annual Report, Year Ended Dec 31, 2011
Northeast Utilities (NU), operating as Eversource Energy (ES), filed its 2011 10-K Annual Report detailing its financial performance and strategic initiatives. The company reported net income attributable to controlling interests of $394.7 million, or $2.22 per share, a slight increase from the previous year. Key drivers for the improved results included favorable electric distribution rate case decisions and higher investments in transmission infrastructure. However, the report highlights significant storm-related restoration costs totaling $354.1 million, most of which is deferred for future recovery from customers, though $30 million was expensed by CL&P as a storm fund reserve. The most significant strategic development is the pending merger with NSTAR, which was extended to April 16, 2012, and awaited regulatory approvals from PURA and the DPU. The company's capital expenditures in 2011 were approximately $1.2 billion, primarily focused on maintaining and expanding its regulated electric transmission, distribution, and natural gas systems, with substantial investments planned for major transmission projects like NEEWS and Northern Pass.
Feb 24, 2012
2010
Eversource Energy Annual Report, Year Ended Dec 31, 2010
Eversource Energy (formerly Northeast Utilities) reported solid financial performance for the year ended December 31, 2010. The company's earnings saw a significant improvement compared to the previous year, driven by favorable rate case decisions for its Connecticut Light and Power (CL&P) and Public Service Company of New Hampshire (PSNH) subsidiaries, warmer weather boosting retail electric sales, and one-time benefits from tax settlements. These positive factors were partially offset by increased pension and storm-related expenses, as well as costs associated with the proposed merger with NSTAR. A key development for investors is the pending merger with NSTAR, announced in October 2010 and structured as a merger of equals. This combination is expected to create a larger, more integrated energy delivery company serving nearly 3.5 million customers across Connecticut, Massachusetts, and New Hampshire. Management anticipates closing the merger in the second half of 2011, subject to shareholder and regulatory approvals. The merger is expected to enhance EPS growth and is a significant strategic focus for the company.
Feb 25, 2011
2009
Eversource Energy Annual Report, Year Ended Dec 31, 2009
Eversource Energy (ES), formerly Northeast Utilities (NU), reported net income attributable to controlling interest of $330.0 million ($1.91 per diluted share) for the year ended December 31, 2009. This represents an increase from 2008, primarily driven by improved earnings from regulated distribution and transmission segments, largely due to cost management efforts, distribution rate increases, and higher transmission investments. The company is heavily focused on its regulated utility operations, with approximately 98% of its earnings derived from these segments. Looking ahead, NU projects 2010 earnings per share between $1.80 and $2.00 and anticipates a compound average annual EPS growth rate of 6% to 9% from 2010 to 2014. A significant capital expenditure program of approximately $6.4 billion is planned from 2010 through 2014, focusing on critical infrastructure upgrades and projects like the New England East-West Solutions (NEEWS) and the Merrimack Clean Air Project. The company is managing regulatory developments, with rate case filings expected to influence future earnings, and remains focused on maintaining regulatory compliance and financial flexibility amidst prevailing economic conditions.
Feb 26, 2010
2008
Eversource Energy Annual Report, Year Ended Dec 31, 2008
Northeast Utilities (NU) closed 2008 with net income of $260.8 million, or $1.67 per fully diluted share, up from $246.5 million ($1.59) in 2007. Results included an after-tax $29.8 million ($0.19 per share) charge to settle the Con Edison merger litigation; excluding it, earnings were $290.6 million ($1.86 per share). The regulated companies (CL&P, PSNH, WMECO and Yankee Gas) generated about 99.5% of earnings, with the transmission segment ($138.3 million) now rivaling the distribution segment ($150.8 million). Growth is driven by a roughly $1.3 billion annual capital program, with transmission rate base projected to rise from about $2.4 billion to about $5.0 billion by 2013, and total regulated capital investment of up to about $7 billion over 2009-2013. The filing also highlights meaningful near-term headwinds. Management guides 2009 EPS to $1.80-$2.00, reflecting lower weather-normalized electric sales (about 1% decline), higher pension and uncollectible expense, and an expected equity issuance of $250-$300 million in mid-2009. Pension assets fell about $900 million in 2008 to $1.56 billion (76% funded), which will require an estimated $150 million contribution in 2010. NU also cut its dividend payout policy: the February 2009 quarterly dividend rose to $0.2375 per share, a target payout of about 50% of earnings. Balance sheet risk is mainly financing-related: total debt of about $4.8 billion, Baa2/BBB-/BBB senior unsecured ratings with stable outlooks, and a credit facility whose available capacity was reduced by the Lehman Brothers Commercial Bank default. Large project risk is concentrated in the New England East-West Solutions (NEEWS) program, with an estimated $1.49 billion NU share through 2013, and the proposed 1,200 MW Hydro-Quebec transmission line (roughly $525 million NU share). Regulatory exposure also includes PSNH's $457 million Merrimack scrubber project, now under New Hampshire Supreme Court appeal, and the December 2008 ice storm (about $100 million of system damage, with $62.7 million charged to a PSNH storm reserve).
Feb 27, 2009
2007
Eversource Energy Annual Report, Year Ended Dec 31, 2007
Northeast Utilities (NU) reported 2007 net income of $246.5 million, or $1.59 per fully diluted share, down from $470.6 million ($3.05 per share) in 2006. The decline is largely attributable to non-recurring 2006 items: an after-tax $314 million gain on the sale of the competitive generation business and a $74 million income tax reduction at CL&P from an IRS Private Letter Ruling. Excluding these, earnings reflect a stronger regulated business, with the regulated companies earning $228.7 million ($1.47 per share), up from roughly $1.28 per share in 2006 distribution and generation plus transmission combined at a higher level, and NU Enterprises contributing only $11.7 million as its remaining wholesale contracts are wound down. The company is now essentially a pure-play regulated utility holding company operating CL&P, PSNH, WMECO and Yankee Gas, with transmission earnings growing rapidly (about $82.5 million in 2007 versus $59.8 million in 2006) on roughly $1 billion of investment since 2005 in southwest Connecticut projects. Management guides to 2008 EPS of $1.65 to $1.90 and projects 8 to 11 percent compounded annual EPS growth through 2012 on a base of $1.59, supported by about $6 billion of regulated capital expenditures over 2008-2012 and a transmission rate base expected to grow from about $1.5 billion to roughly $3.9 billion. Key risks include a below-expectation CL&P distribution rate decision (9.4% authorized ROE versus an 11% request), ongoing Con Edison merger litigation with a trial set for March 2008, regulatory uncertainty around decoupling and Connecticut energy policy, rising capital costs, and potential collateral calls tied to a ratings downgrade. Liquidity is adequate with $15.1 million of cash at year-end after roughly $400 million of deferred 2006-sale-related taxes were paid in 2007.
Feb 29, 2008
2006
Eversource Energy Annual Report, Year Ended Dec 31, 2006
Northeast Utilities (NU), headquartered in Berlin, Connecticut, filed its combined 2006 Form 10-K on March 1, 2007 covering NU and its regulated subsidiaries CL&P, PSNH and WMECO. The headline story is a sharp earnings recovery: NU earned $470.6 million, or $3.05 per diluted share, in 2006 versus a $253.5 million loss ($1.93 per share) in 2005, driven mainly by the exit from its competitive energy businesses (NU Enterprises). The $1.34 billion sale of the competitive generation business to Energy Capital Partners in November 2006 produced an after-tax gain of roughly $314 million, and a $74 million income tax reduction at CL&P from an IRS private letter ruling also boosted results. Excluding these one-time items, the regulated Utility Group earned about $123.5 million, or $0.80 per share, versus $0.93 in 2005, reflecting higher operating costs, lower sales and a weak PSNH and Yankee Gas return. The investment story is now a regulated growth story. NU is a pure-play regulated utility serving about 1.9 million electric customers and 200,000 gas customers, and management projects 2007 EPS of $1.30 to $1.55 and compound annual EPS growth of 10% to 14% from 2006 (excluding the PLR benefit) through 2011. That growth rests on a roughly $2.5 billion transmission capital program for 2007-2011, with transmission rate base expected to grow from about $1.1 billion to $3.0 billion, earning a 12.4% FERC ROE on most new regional projects. Total Utility Group capital spending is projected at about $4.9 billion over 2007-2011. Key risks investors should weigh include a sharply weaker liquidity position: NU expects roughly $350 million of 2007 tax payments tied to the generation sale, plus approximately $1.2 billion of capex, so it expects to borrow on its credit facilities and see cash fall significantly by year-end. Ratings are investment grade but near the floor (Baa2/BBB-/BBB), and regulatory outcomes are material, including a pending PSNH rate settlement, a Yankee Gas rate request, uncertainty around FERC rehearing on transmission ROEs, and a $250 million PSNH scrubber commitment. Litigation includes a pending $1 billion-scale merger dispute with Consolidated Edison, where NU's claims and Con Edison's damage claim of at least $314 million remain unresolved.
Mar 1, 2007
2005
Eversource Energy Annual Report, Year Ended Dec 31, 2005
Northeast Utilities (NU), the parent of Connecticut Light & Power (CL&P), Public Service Co. of New Hampshire (PSNH), and Western Massachusetts Electric (WMECO) plus Yankee Gas, reported a 2005 net loss of $253.5 million, or $1.93 per share, versus earnings of $116.6 million ($0.91) in 2004. The loss was driven almost entirely by NU Enterprises, the competitive energy unit, which lost $398.2 million after $278.9 million of after-tax mark-to-market charges on wholesale contracts and $43.7 million of restructuring and impairment charges. Management decided in 2005 to exit all competitive businesses (wholesale and retail marketing, generation, and energy services) by the end of 2006, with proceeds earmarked for debt reduction and funding the regulated utilities. The regulated Utility Group remained profitable, earning $163.4 million ($1.24 per share) in 2005, up from $155.6 million. Results were supported by higher transmission earnings and distribution rate increases, partly offset by employee termination and pension curtailment charges. Management guided 2006 combined Utility Group and parent earnings of $1.09 to $1.22 per share and projects roughly $4.3 billion of regulated capital investment from 2006 through 2010, with 8% to 10% annual EPS growth targeted beginning in 2007. Liquidity was supported by a December 2005 common equity issuance of 23 million shares raising about $425 million net. Key risks for investors include the remaining wholesale contract exposures through 2013, collateral calls of roughly $407 million if NU were downgraded to sub-investment grade, sharply higher Connecticut retail rates (a 17.5% TSO increase in 2006 plus 4.9% more in April), pending FERC decisions on transmission ROE and CYAPC decommissioning costs, and the proposed Forward Capacity Market, which could cost CL&P about $470 million over the transition period.
Mar 10, 2006
2004
Eversource Energy Annual Report, Year Ended Dec 31, 2004
Northeast Utilities (NU), the parent of Connecticut Light & Power (CL&P), Public Service Co. of New Hampshire (PSNH) and Western Massachusetts Electric (WMECO), reported 2004 net income of $116.6 million, or $0.91 per diluted share, essentially flat versus $116.4 million in 2003. Results were held back by a $48.3 million after-tax mark-to-market loss on natural gas hedges tied to wholesale electricity positions, plus $8.8 million of after-tax investment write-downs. The Utility Group, which holds the regulated distribution, transmission and gas businesses, earned $155.6 million ($1.21 per share), up $23.1 million on higher retail rates. NU Enterprises, the competitive unit, lost $15.1 million. The most important development for investors is the March 9, 2005 decision to exit the wholesale marketing business at Select Energy and to explore divesting the energy services businesses. A charge is expected in Q1 2005, but its size is not yet known. The company also disclosed that its internal controls over financial reporting were ineffective at year-end 2004 because of a material weakness in accounting for those natural gas contracts. Deloitte issued an adverse opinion on internal controls, and NU restated its June and September 2004 quarterly results. The Utility Group faces a heavy capital program: about $3.7 billion over 2005-2009, with NU expecting to fund roughly half from operating cash flow and to need several hundred million dollars of common equity, possibly from a share sale as early as 2006. Rating outlooks were lowered in 2004 and Moody's downgraded several NU entities in February 2005. Key open items include the FERC transmission ROE hearings, the CYAPC decommissioning cost dispute, the Con Edison merger litigation and the CL&P transmission projects. Guidance calls for Utility Group EPS of $1.22 to $1.30 in 2005, with no consolidated NU Enterprises guidance.
Mar 17, 2005
2003
Eversource Energy Annual Report, Year Ended Dec 31, 2003
Northeast Utilities (NU), the parent of CL&P, PSNH, WMECO and Yankee Gas, closed 2003 with earnings of $116.4 million, or $0.91 per diluted share, down from $152.1 million ($1.18) in 2002. Results were dragged down by a roughly $36.9 million after-tax (about $0.29 per share) settlement loss tied to the March 2003 Standard Market Design (SMD) dispute between CL&P and its standard offer suppliers, and by a $4.7 million after-tax accounting charge from consolidating R.M. Services under FIN 46. Excluding these items, net income would have been about $158 million, or $1.24 per share. Lower pension income, which fell roughly $41.6 million pre-tax, was a further drag on the regulated utilities. The outlook for 2004 is mixed. Management guides to $1.20 to $1.40 per share of consolidated earnings, with NU Enterprises (Select Energy and the generation and services businesses) projected at $0.22 to $0.30 per share. Cash flow will weaken significantly in 2004, mainly because CL&P must pay roughly $83 million to suppliers under the SMD settlement and refund previously overcollected stranded costs of about $262 million over four years. Capital spending is set to rise to about $738 million, with CL&P's transmission build-out (345-kV lines to Norwalk and Middletown) a major driver. These needs point to new external financing, including up to $250 million of CL&P first mortgage bonds. The balance sheet remains serviceable. NU's total system debt, excluding rate reduction bonds, rose to $2.7 billion, and the company had $83.7 million of cash at year end. Common equity was 46% of capitalization excluding rate reduction bonds. Key risks include pending regulatory decisions (the PSNH delivery rate case, the FERC transmission rate case, and the SMD settlement approval), the financial health of counterparties after the NRG bankruptcy, the Con Edison merger litigation (NU claims damages above $1 billion), and rising Yankee Company decommissioning costs, including $167.7 million of NU's share tied to the Bechtel contract termination.
Mar 12, 2004
2002
Eversource Energy Annual Report, Year Ended Dec 31, 2002
Northeast Utilities (NU), parent of CL&P, PSNH, WMECO and Yankee Gas, reported 2002 earnings of $152.1 million, or $1.18 per diluted share, down from $243.5 million ($1.79) in 2001. The decline was driven by the absence of 2001's Millstone sale gain and by a loss of $54.1 million at its competitive energy subsidiaries, led by Select Energy. The regulated utilities earned $1.72 per share in aggregate in 2002, and most of the earnings decline is attributed to that segment's lower base, not just competitive losses. The company completed the four-year divestiture of its generation fleet with the November 2002 sale of its Seabrook interests for roughly $384 million in total cash proceeds. For 2003, NU guides to earnings of $1.10 to $1.30 per share. The guidance reflects the loss of Seabrook-related earnings, a sharp drop in projected pension income (from $73.4 million pre-tax to about $31 million), and expected improvement at the competitive businesses. Management expects Select Energy's wholesale business to be profitable, its retail business to break even, and trading to be modestly profitable, though these forecasts depend on new business wins and favorable river conditions. Investors should weigh several risks. Standard Market Design began on March 1, 2003, shifting congestion costs onto Connecticut customers, with CL&P potentially bearing about 80% of costs of $50 million to $300 million region-wide. NRG Power Marketing, a supplier to CL&P's standard offer load, is in financial distress, and its parent NRG is in default. Con Edison merger litigation seeks damages in the hundreds of millions, and NU continues to repurchase shares while carrying about $2.4 billion of system debt excluding rate reduction bonds.
Mar 21, 2003
2001
Eversource Energy Annual Report, Year Ended Dec 31, 2001
Northeast Utilities (NU), parent of CL&P, PSNH, WMECO and Northeast Generation Company, reported 2001 net income of $243.5 million, or $1.79 per fully diluted share, versus a $28.6 million loss ($0.20 per share) in 2000. The headline improvement is driven largely by non-recurring items: a $115.6 million after-tax gain on the sale of the Millstone nuclear units to Dominion Nuclear Connecticut (about $1.2 billion in proceeds), partly offset by a $22.4 million after-tax SFAS 133 adoption charge and a $35.4 million mark-to-market loss on share repurchase contracts. Excluding these items, NU earned about $185.7 million, or $1.37 per share, compared with $1.45 per share in 2000 excluding the extraordinary charge. Management guided 2002 EPS to $1.40 to $1.65, excluding significant nonrecurring items, and expects regulated earnings to be relatively stable absent major adverse events, while noting pension income will fall from about $101 million to about $73 million. The balance sheet and financing picture improved sharply. Securitization through rate reduction bonds and certificates (about $2.1 billion issued across CL&P, PSNH and WMECO) allowed NU to retire roughly $1.3 billion of debt and preferred stock, cutting system debt to about $2.7 billion from $3.8 billion. The NU capitalization ratio moved to 54.3% debt and 43.3% common equity, and senior debt ratings were upgraded to the highest levels in decades. NU also repurchased about 14.3 million shares in 2001 and authorized up to 15 million more through July 2003, which lifted EPS but consumed substantial cash. Key risks remain. Select Energy, the competitive marketing arm with about $3 billion of 2001 revenue, is obligated to supply 50% of CL&P's standard offer load at below-market prices through 2003, and management says this may hurt earnings unless Connecticut regulators raise the rate. NU also faces a pending lawsuit against Consolidated Edison over the terminated merger (both sides seek over $1 billion), NEON Communications debt-restructuring exposure on a $15 million note plus equity, and Millstone and ICAP-related litigation. In a notable governance item, Arthur Andersen was replaced by Deloitte & Touche as auditor on March 15, 2002.
Mar 22, 2002
2000
Eversource Energy Annual Report, Year Ended Dec 31, 2000
Northeast Utilities (NU) filed its 2000 annual Form 10-K on March 16, 2001 (combined with CL&P, PSNH, WMECO and NAEC) during a period of major uncertainty. NU reported a 2000 net loss of $28.6 million, or $0.20 per diluted share, but earnings before extraordinary items were $205.3 million ($1.45 per share), compared with $34.2 million ($0.26) in 1999. The loss was driven by $233.9 million in after-tax extraordinary charges, mainly a roughly $225 million write-off of PSNH stranded costs under the New Hampshire Settlement Agreement and the discontinuation of SFAS No. 71 for generation assets. Revenues hit a record $5.9 billion, up 31%, largely from the Select Energy competitive energy business, which generated $1.9 billion in revenue. The central investor issue is the failed merger with Consolidated Edison. Con Edison refused to close on the agreed terms on March 5, 2001, NU treated this as a breach, and both companies filed dueling lawsuits in the Southern District of New York (NU seeking damages above $1 billion). NU states it cannot predict the outcome. The merger would have paid approximately $26.84 per share under stated assumptions, so the outcome is a key valuation driver. Management guided 2001 earnings of $1.40 to $1.60 per share, excluding significant nonrecurring items. Balance sheet and restructuring activity is significant. Management expects the Millstone nuclear sale to Dominion (about $1.3 billion, closing as early as end of March 2001) and securitization of stranded costs to return more than $5 billion of cash to the regulated companies between 1999 and 2002, used to reduce debt and return equity to the parent. Investment-grade ratings were restored by Moody's and S&P in January 2001. Risks remain, including the Select Energy standard offer contract exposure through 2003, an ISO FERC capacity-price reduction that cut Q4 2000 earnings by $0.10 per share, Millstone-related litigation, and pending New Hampshire and Connecticut regulatory proceedings.
Mar 28, 2001
1999
Eversource Energy Annual Report, Year Ended Dec 31, 1999
Northeast Utilities (NU), the parent of CL&P, PSNH, WMECO and NAEC, closed 1999 with a return to profitability: net income of $34.2 million, or $0.26 per share, versus a loss of $146.8 million ($1.12 per share) in 1998. Excluding significant one-time items, management says NU earned $0.89 per share, and 1999 included $83 million ($0.63 per share) of after-tax write-offs. Revenues passed $4 billion for the first time, reaching $4.47 billion (up 18.7%), driven largely by Select Energy's wholesale and retail electricity marketing, and by 3.8% growth in regulated retail sales. The return to service of Millstone 2 and 3 cut replacement power costs by $215 million, which was the main driver of the improved operating performance. Operating income rose to $344.5 million from $224.7 million. The company's outlook depends on several pending events. The largest is the agreed merger with Consolidated Edison, under which Con Edison will pay about $25 per NU share in cash and stock, plus a possible $1 per share if the Millstone 2 and 3 divestiture condition is met. The deal is targeted to close around July 2000 and is subject to shareholder and multi-agency regulatory approvals. Investors should also note that NU closed its Yankee Energy acquisition on March 1, 2000, adding a natural gas distribution business. Restructuring is far from complete: the New Hampshire settlement with PSNH, which would require a $225 million after-tax write-off, is still awaiting NHPUC approval. The Connecticut nuclear divestiture auction and planned securitizations are also still pending. Several risks stand out. Select Energy lost $38.8 million in 1999 on $554.9 million of revenue, and its profitability depends on balancing supply and sales commitments. The financial statements of PSNH and NAEC carry going-concern explanatory paragraphs from Arthur Andersen, tied to the New Hampshire restructuring. Litigation also remains open, including a Millstone 3 minority owner claim of roughly $300 million in damages and shareholder class actions related to the Con Edison merger. The company's equity ratio and debt covenants are the other items to monitor.
Mar 27, 2000
1998
Eversource Energy Annual Report, Year Ended Dec 31, 1998
Northeast Utilities (NU), parent of CL&P, PSNH, WMECO and NAEC, reported a 1998 net loss of $146.8 million, or $1.12 per share, compared with a $130.0 million loss ($1.01 per share) in 1997. The loss was driven by a $143.2 million write-off of CL&P's Millstone 1 investment and accelerated amortization of regulatory assets ordered by Connecticut regulators in the February 1999 CL&P rate decision. Operating revenues fell 2% to $3.77 billion, while nonfuel O&M declined and Millstone 3 returned to service, improving operating trends. The company suspended its common dividend in March 1997 and paid none in 1998, and total System debt fell to $3.87 billion from $4.15 billion. The investment case rests on the outcome of restructuring. Connecticut law permits stranded-cost recovery but requires divestiture of generation assets, and CL&P's rate order cut revenue requirements by about $232 million (9.68%) and capped its return on equity at 10.3%. In New Hampshire, PSNH's stranded-cost recovery remains in federal litigation, with a trial expected in mid-to-late 1999, and the auditors include going-concern explanatory paragraphs for PSNH and NAEC. Covenant waivers and amendments were needed at CL&P, WMECO and NU in March 1999 to avoid defaults, and the NU revolving credit lines expire in 1999. NU's exposure is substantial: roughly $2.9 billion of nuclear investment, about $2.3 billion of regulatory assets, and above-market purchase-power obligations exceeding $1 billion in net present value. Key open items include Millstone 2's planned spring 1999 restart, the sale of non-nuclear generation (about $47 million for WMECO's 290 MW), possible securitization of stranded costs, and the potential write-off of CYAPC regulatory assets. Management expects these matters to determine whether earnings and financial flexibility recover.
Mar 23, 1999
1997-A
Eversource Energy Annual Report (Amendment), Year Ended Dec 31, 1997
This amended 10-K/A (Amendment No. 1) for fiscal 1997, filed by Northeast Utilities (NU) and its subsidiaries CL&P, PSNH and WMECO, restates the 1996 and 1997 results to expense nuclear compliance costs (unavoidable incremental costs of Millstone outages) as incurred, following an SEC inquiry. The restatement does not change the cash economics of the outages, but it reflects that these costs were previously reserved rather than expensed. Restated NU 1997 net loss is $129.96 million, or $(1.01) per share, versus a 1996 profit of $0.30 per share and 1995 earnings of $2.24. Common dividends were suspended in March 1997, and 1997 dividends paid were $0.25 per share. The dominant driver of the poor results is the ongoing shutdown of all three Millstone nuclear units (out of service since 1995-1996). Replacement power costs averaged about $28 million per month in 1997, and NU's nonfuel O&M at Millstone rose to roughly $556 million from $340 million. Management hopes for restarts of Millstone 3 in spring 1998 and Millstone 2 three to four months later, but restart timing depends on NRC approval. Regulatory overhang is also significant: PSNH faces a temporary restraining order against a New Hampshire restructuring order that would trigger a write-off of over $400 million, and NHPUC and DPUC actions could remove Millstone units from rates. Credit ratings are below investment grade at all NU system companies, and covenant headroom under the $313.75 million credit agreement is tight. Restated NU common equity fell to $2.17 billion, or $16.67 book value per share, from $18.02. For investors, the central questions are liquidity through the Millstone outage, the outcome of restructuring in New Hampshire and Massachusetts, and whether the Connecticut DPUC will keep Millstone units in rate base. The filing itself is an accounting amendment, so its value lies in the restated figures and risk disclosures rather than new operating news.
Jun 12, 1998
1996-A
Eversource Energy Annual Report (Amendment), Year Ended Dec 31, 1996
This filing is not a standard annual report but Amendment No. 1 (Form 10-K/A) to the fiscal 1996 Form 10-K, submitted June 11, 1998 jointly by Northeast Utilities (NU, ticker ES in the request), The Connecticut Light and Power Company (CL&P), Public Service Company of New Hampshire (PSNH), and Western Massachusetts Electric Company (WMECO). Its purpose is to restate accounting for nuclear compliance costs after an SEC inquiry dated March 25, 1998. The SEC's position is that unavoidable incremental costs of current nuclear outages, and procedures required before reactor restart under NRC requirements, should be expensed as incurred rather than reserved in advance. NU and its auditor Arthur Andersen LLP had believed the prior accounting complied with GAAP, but the company agreed to adjust its accounting and amend its 1996 and 1997 Form 10-K filings. For investors, the key point is that this amendment does not contain new financial statements in the document itself. Items 6, 7, 8 and 14 (selected financial data, MD&A, financial statements, and exhibits) are incorporated by reference from the amended 1997 Form 10-K/As, which reflect the restated accounting. The restatement changes the timing of expense recognition for nuclear outage costs, shifting them from prior reserve-based accruals toward expensing as incurred, which can affect reported earnings in the periods involved. The excerpt provided does not quantify the dollar impact, so investors should consult the referenced 1997 amended filings for the specific effects on earnings, reserves, and balance sheet figures. The filing also provides useful context on the capital structure and market profile of the registrants. As of May 29, 1998, 136,886,368 NU common shares were outstanding, with a non-affiliate market value of approximately $2.18 billion at a closing price of $15.94 per share. NU holds all common stock of CL&P, PSNH and WMECO. CL&P has multiple preferred stock series listed on the NYSE, including 9.3% Cumulative Monthly Income Preferred Securities issued through CL&P Capital, L.P. The main investor concern arising from this filing is the regulatory and accounting scrutiny of nuclear operations and the resulting earnings restatement, which may signal governance and reporting-quality risk.
Jun 12, 1998
1997
Eversource Energy Annual Report, Year Ended Dec 31, 1997
Northeast Utilities (NU), the parent of Connecticut Light and Power (CL&P), Public Service Company of New Hampshire (PSNH), Western Massachusetts Electric (WMECO) and North Atlantic Energy Corp. (NAEC), reported a 1997 net loss of $135.7 million, or $(1.05) per share, versus earnings of $0.01 per share in 1996 and $2.24 in 1995. The loss was driven primarily by the prolonged shutdown of the Millstone nuclear units, which have been offline since late 1995 and early 1996. Replacement power costs and nonfuel O&M at Millstone were far higher than in 1996, and the company expensed these costs as incurred. Dividends on common stock were suspended in March 1997, and the company's credit ratings were cut below investment grade by Moody's and S&P in late 1997 and early 1998. The balance sheet and liquidity position are under heavy strain. Management says the System's exposure to strandable costs and above-market purchased power obligations exceeds shareholders' equity. Several subsidiaries face restrictive borrowing covenants, and the company says it must constrain 1998 spending to stay in compliance. A federal court temporary restraining order is currently blocking a New Hampshire restructuring order that would have forced PSNH to write off more than $400 million of regulatory assets, and the filing warns that a write-off could trigger defaults and possibly Chapter 11 filings at PSNH and NAEC. Massachusetts enacted restructuring legislation in November 1997 requiring a 10% rate cut on March 1, 1998, and Connecticut restructuring is pending. The near-term outlook depends heavily on the restart of Millstone 3 (targeted for early spring 1998) and Millstone 2 (three to four months later), NRC approval for each restart, the outcome of the New Hampshire litigation and settlement talks, and Connecticut and Massachusetts restructuring decisions. Management expects Millstone-related expenses to fall in 1998 if the restart schedules hold, but the filing acknowledges no assurance that financial covenants will be met. Note that this is a combined filing covering five registrants, and the 1998 information reflects management's forecasts at the time of filing.
Mar 19, 1998
1996
Eversource Energy Annual Report, Year Ended Dec 31, 1996
Northeast Utilities (NU) and its operating subsidiaries (CL&P, PSNH, WMECO, NAEC) reported a near-breakeven 1996 with earnings of just $0.01 per share, down from $2.24 in 1995, as the prolonged shutdown of the three Millstone nuclear units (out of service since late 1995 and early 1996) drove roughly $480 million in costs, including about $260 million of replacement power and $403 million of Millstone-related non-fuel O&M. Total System debt stood at $4.15 billion, NU's common equity ratio was 34.6%, and several borrowing covenants were breached or only waived, forcing NU to obtain a limited waiver and to pledge CL&P and WMECO first mortgage bonds as collateral. Management expects only a break-even result in 1997 while the units remain offline, and the Board is being urged to consider suspending the common dividend, which had already been cut from $0.44 to $0.25 per quarter in 1996. The most urgent risk, however, is the February 28, 1997 New Hampshire Public Utilities Commission restructuring order. It would force PSNH to write off more than $400 million after tax by discontinuing SFAS 71 accounting, and would trigger lender acceleration rights over roughly $686 million of PSNH debt and $515 million of NAEC debt. A federal temporary restraining order issued March 10, 1997 currently stays the most damaging elements, but if it is not extended, PSNH and NAEC could be forced toward Chapter 11, and both auditors included going-concern paragraphs for those two entities. Credit ratings were downgraded in March 1997, and the Connecticut and Massachusetts restructuring proposals add further uncertainty about stranded-cost recovery, which the company estimates at about $3.6 billion of nuclear investment and $2.2 billion of regulatory assets. For investors, the filing describes a company whose equity value depends heavily on three near-term events: the timing of Millstone restarts (management targets one unit in Q3 1997 and the others in Q4 1997 and Q1 1998, with no assurance), the outcome of the federal court proceedings on New Hampshire restructuring, and the ability to refinance or waive covenants on the New Credit Agreement. The filing also discloses substantial ongoing legal exposure, including shareholder class actions, derivative suits, NRC enforcement matters, and a criminal investigation in which NU has been told it is a target.
Mar 25, 1997
1995-A
Eversource Energy Annual Report (Amendment), Year Ended Dec 31, 1995
This Form 10-K for fiscal year 1995 is a combined annual report for Northeast Utilities (NU) and four of its subsidiaries: The Connecticut Light and Power Company (CL&P), Public Service Company of New Hampshire (PSNH), Western Massachusetts Electric Company (WMECO), and North Atlantic Energy Corporation (NAEC). The excerpt provided contains only the cover page, registrant information, securities registrations, and the list of incorporated documents. It does not include the business description, financial statements, or MD&A, which are incorporated by reference from the 1995 Annual Reports to Shareholders. As a result, this excerpt does not allow an assessment of earnings, revenues, capital structure, or operating performance. The cover page does establish key structural facts for investors. NU is a Massachusetts voluntary association with 127,603,306 common shares outstanding as of February 29, 1996. The aggregate market value of shares held by nonaffiliates was approximately $2.97 billion, based on a closing price of $23 1/4 per share. NU wholly owns the common stock of its four operating subsidiaries, including CL&P, PSNH, WMECO, and NAEC, which means the equity investor's exposure runs entirely through this holding structure. The registration statement also shows a diverse set of senior securities outstanding at the subsidiary level. These include multiple series of CL&P preferred stock issued in $50 par value, a PSNH 10.60% preferred series, WMECO preferred and Class A preferred series, and a 9.3% monthly income preferred security issued through CL&P Capital, L.P. NU common share warrants exercisable at $24 per share are also registered. Investors seeking financial performance details should consult the incorporated 1995 annual reports, which were not included in this excerpt.
Mar 14, 1996
1995
Eversource Energy Annual Report, Year Ended Dec 31, 1995
Northeast Utilities (NU), parent of Connecticut Light & Power (CL&P), Public Service Co. of New Hampshire (PSNH), Western Massachusetts Electric (WMECO) and North Atlantic Energy Corp. (NAEC), reports a 1995 10-K that combines modest earnings with significant structural and regulatory risk. Earnings per share were $2.24 in 1995, down from $2.30 in 1994, on revenues of $3.75 billion and net income of $282 million. The decline reflected higher operating expenses, lower wholesale revenues and higher fuel and purchased-power costs, partly offset by rate increases and lower income taxes. Retail kWh sales fell 0.1%, and the company expects flat sales in 1996. Regulatory assets of about $2.0 billion are a central concern, since recovery depends on rate negotiations that begin as current rate agreements expire in 1996 and 1997. The bigger investor issues are competition and credit quality. Management sees strandable-cost exposure from high-cost nuclear investment and above-market purchased power, and the industry is moving toward retail wheeling in New England and New Hampshire. Moody's and S&P have both rated PSNH's first mortgage bonds below investment grade, and NAEC's securities were never investment grade, which raises future borrowing costs. Millstone Station was placed on the NRC's 'watch list' on January 31, 1996, and Millstone 2 was shut down again on February 21, 1996, adding replacement-power costs of roughly $8.5 to $9 million per month. The dividend was held at $0.44 per quarter, and the board chose not to raise it given regulatory uncertainty and nuclear performance. On balance, the filing describes a utility with a strong cash-coverage position on its dividend (about 4:1) and a deliberate plan to reduce regulatory assets, but with near-term earnings pressure, nuclear operating risk, a leveraged PSNH balance sheet, and unresolved restructuring outcomes. Investors should weigh the dividend's coverage against these uncertainties.
Mar 14, 1996
1994
Eversource Energy Annual Report, Year Ended Dec 31, 1994
Northeast Utilities (NU), parent of The Connecticut Light and Power Company (CL&P), Public Service Company of New Hampshire (PSNH), Western Massachusetts Electric Company (WMECO), and North Atlantic Energy Corporation (NAEC), reported a stronger 1994 driven by retail sales growth and cost controls. Earnings per common share rose to $2.30 from $2.02 in 1993 (the 1993 figure included a one-time $0.42 property-tax accounting benefit), and net income was $286.9 million. Retail kilowatt-hour sales grew 2.9%, the strongest increase in six years, on the New England economic recovery. NU's 1994 wholesale revenues fell to about $331 million from $383 million as major contracts expired, and management expects further declines in 1995 before stabilization in 1996-1997. The balance sheet is improving but remains burdened by nuclear and regulatory exposures. Total debt fell to $4.54 billion from $4.88 billion a year earlier, and NU's common equity ratio was 33.4%, above the 27% covenant threshold. Key risks include Millstone 2's extended outage and NRC criticism, a 1994 nuclear capacity factor of 67.5%, PSNH's dependence on a rate agreement and negotiations with wood-fired NUGs, and decommissioning liabilities of roughly $1.2 billion for the Millstone and Seabrook units. Regulatory uncertainty is also rising, with Connecticut, New Hampshire and Massachusetts all studying electric industry restructuring and retail wheeling. For investors, the 1994 results and deleveraging are constructive, but the outlook is clouded by the expected wholesale revenue decline, the Millstone 2 outage, and the possibility of restructuring. The dividend was held at $1.76 per share annually ($0.44 quarterly), with a $0.44 dividend declared in January 1995. This filing is a combined annual report covering the four registrants.
Mar 27, 1995
1993-A
Eversource Energy Annual Report (Amendment), Year Ended Dec 31, 1993
This filing is Amendment No. 1 (Form 10-K/A) to the combined 1993 annual report of Northeast Utilities (NU) and its subsidiaries: The Connecticut Light and Power Company (CL&P), Public Service Company of New Hampshire (PSNH), Western Massachusetts Electric Company (WMECO), and North Atlantic Energy Corporation (NAEC). Per its own cover statement, the sole purpose of the amendment is to make format adjustments to Exhibits 13.1 through 13.5; it states that no substantive changes to the material in the original 10-K filed March 25, 1994 are included. The substantive content is therefore the 1993 financial information contained in those exhibits. For NU, 1993 earnings per common share were $2.02, unchanged from 1992, but this figure includes a one-time $0.42 per share cumulative-effect gain from a change in Connecticut property tax accounting. Excluding that gain, EPS before the accounting change was $1.60, down from $2.02, reflecting the PSNH acquisition's one-time 1992 benefit, a $0.14 per share employee-reduction charge, and a $0.12 per share disallowance in CL&P's rate case. Operating revenues rose to $3.63 billion (from $3.22 billion), largely due to a full year of PSNH consolidation. Management expects retail sales growth of 1 to 2 percent in 1994, and flagged competitive and wholesale pricing pressure in the Northeast. Key regulatory items include CL&P's multiyear rate plan (ROE cut to roughly 11.5 to 11.7 percent), a Connecticut GUAC disallowance of $7.9 million, and pending Millstone prudence reviews with about $66 million and $26 million in exposure. Balance sheet and financing points include total assets of $10.67 billion, long-term debt of about $4.0 billion net of current portions, $1.5 billion of debt and preferred maturities scheduled for 1994 through 1998, and a dividend payout of 87 percent of 1993 earnings. The company intends to lower that payout ratio through improved earnings.
Mar 31, 1994
1993
Eversource Energy Annual Report, Year Ended Dec 31, 1993
Northeast Utilities (NU), the parent of a five-company New England utility system that includes The Connecticut Light and Power Company (CL&P), Public Service Company of New Hampshire (PSNH), Western Massachusetts Electric Company (WMECO), and North Atlantic Energy Corporation (NAEC), serves about 30 percent of New England's electric needs. For 1993, NU reported earnings of $2.02 per share, unchanged from 1992, but earnings before a one-time accounting benefit were $1.60 per share, reflecting one-time charges for a workforce reduction of about 7 percent, a CL&P rate-case disallowance, and the full-year effect of the PSNH acquisition completed in June 1992. Net income was $249.95 million, and the dividend of $1.76 per share consumed about 87 percent of earnings, a payout ratio management says it needs to lower through improved 1994 earnings. The balance sheet is heavily shaped by the 1992 PSNH acquisition. Deferred charges reached $2.9 billion, including a $769.5 million PSNH regulatory asset and $1.2 billion of SFAS 109 tax-related regulatory assets. NU's common equity ratio was 30.9 percent at year-end, above the 27 percent threshold in credit agreements, while CL&P's common equity ratio was 39.1 percent, against a 36 percent DPUC review trigger. PSNH's equity ratio of 28.2 percent sits above its covenant floors, but PSNH's cash flow remains constrained by its rate agreement and its dependence on the Seabrook Power Contract. Long-term debt maturities and sinking-fund requirements total about $1.37 billion for 1994 through 1998, and the company has pursued aggressive refinancings of high-cost debt. Key risks for investors include the nuclear fleet's performance and related prudence reviews (roughly $66 million and $26 million in contested exposure at CL&P), uncertain Connecticut retail wheeling and rate-regulation outcomes, competitive pressure in wholesale markets, a regional economy with flat 1993 retail sales, and PSNH's exposure to Seabrook costs. Management expects modest sales growth in 1994 and cites reorganization and reengineering as the path to improved earnings.
Mar 25, 1994