10-KPeriod: FY2007

EVERSOURCE ENERGY Annual Report, Year Ended Dec 31, 2007

Filed February 29, 2008For Securities:ES

Summary

Eversource Energy (ES), operating as Northeast Utilities (NU) in 2008, is a utility holding company with significant regulated electric and gas distribution operations across Connecticut, New Hampshire, and western Massachusetts. The company's primary business segments are electric distribution, electric transmission, and natural gas distribution, with regulated operations accounting for over 92% of earnings in 2007. NU has been actively exiting its unregulated competitive energy businesses. The company is focused on maintaining and upgrading its infrastructure, with substantial capital expenditure plans for transmission and distribution systems, driven by aging assets and projected load growth. Regulatory approvals for rate increases and capital investments are critical to financial performance, with ongoing engagements with state regulatory commissions in Connecticut (DPUC), New Hampshire (NHPUC), and Massachusetts (DPU).

Key Highlights

  • 1Eversource Energy (as Northeast Utilities) is primarily a regulated utility holding company, deriving the vast majority of its earnings from electric and gas distribution and transmission services across New England.
  • 2The company is actively divesting its remaining unregulated competitive energy businesses to focus solely on its regulated utility operations.
  • 3Significant capital investment is planned for infrastructure upgrades and expansion, particularly in transmission, to address aging assets and anticipated demand.
  • 4Regulatory approvals from state commissions in Connecticut, New Hampshire, and Massachusetts are crucial for rate recovery and capital investment projects.
  • 5PSNH, a subsidiary, owns approximately 1,200 MW of electric generation assets, including a recently converted wood-burning unit.
  • 6Yankee Gas completed construction of a significant liquefied natural gas (LNG) facility in Connecticut in 2007 to support its gas distribution business.
  • 7The company is managing market risks related to interest rates and credit, while its regulated businesses have lower credit risk profiles.

Frequently Asked Questions

Eversource Energy, operating as Northeast Utilities (NU) in 2008, primarily operates through three regulated segments: electric distribution, electric transmission, and natural gas distribution. The company also has been in the process of exiting its unregulated competitive energy businesses.

The company has been in the process of exiting most of its unregulated competitive energy businesses since 2005 and as of the filing date, these businesses consisted of minimal remaining wholesale marketing contracts and energy services operations.

The company anticipates funding its capital expenditure programs through a combination of bank borrowings, the issuance of long-term debt at the subsidiary level, and debt and equity financing at the NU Parent level.

The company's operations are overseen by federal and state regulatory agencies. Key state agencies include the Connecticut Department of Public Utility Control (DPUC) for CL&P and Yankee Gas, the New Hampshire Public Utilities Commission (NHPUC) for PSNH, and the Massachusetts Department of Public Utilities (DPU) for WMECO. The Federal Energy Regulatory Commission (FERC) also has oversight for wholesale transmission rates and other federal matters.