8-KOther Events

EVERSOURCE ENERGY 8-K Report (Feb 7, 2002)

Filed February 7, 2002For Securities:ES

Summary

This 8-K filing by Northeast Utilities, dated February 7, 2002, reports on a significant financial transaction completed by its subsidiary, Public Service Company of New Hampshire (PSNH). Specifically, on January 30, 2002, PSNH Funding LLC 2, a subsidiary of PSNH, successfully closed the public sale of $50,000,000 in Rate Reduction Bonds (RRBs). The primary purpose of this bond issuance was to generate funds that would be used by PSNH to repay debt. This debt was originally incurred to finance the buy-out of a purchased power obligation with an independent power supplier. The proceeds from the RRBs were applied to the purchase of certain RRB property from PSNH, demonstrating a structured approach to managing and reducing specific financial liabilities.

Key Highlights

  • 1PSNH Funding LLC 2, a subsidiary of Public Service Company of New Hampshire (PSNH), issued $50 million in Rate Reduction Bonds (RRBs).
  • 2The bond sale closed on January 30, 2002, with proceeds applied to the purchase of RRB property from PSNH.
  • 3The net proceeds from the bond sale will be used by PSNH to repay debt.
  • 4The debt being repaid was incurred to buy out a purchased power obligation with an independent power supplier.
  • 5This transaction is structured to manage specific financial obligations and potentially reduce costs associated with purchased power.
  • 6The filing includes various supporting agreements as exhibits, such as the Underwriting Agreement, Limited Liability Company Agreement, and Indenture for the RRBs.

Frequently Asked Questions

The main financial event is the successful closing of a $50 million Rate Reduction Bond (RRB) issuance by PSNH Funding LLC 2, a subsidiary of Public Service Company of New Hampshire (PSNH), on January 30, 2002.

The proceeds from the RRBs will be used by PSNH to repay debt that was incurred to buy out a purchased power obligation with an independent power supplier.

Rate Reduction Bonds are typically used by utility companies to finance specific liabilities, such as purchased power obligations, with the goal of potentially reducing costs and smoothing out rate impacts for customers over time. This transaction allows PSNH to retire debt related to a specific past obligation.

The filing references several key documents as exhibits, including the Underwriting Agreement, the Limited Liability Company Agreement for PSNH Funding LLC 2, and the Indenture governing the Rate Reduction Bonds, along with related purchase and servicing agreements.