8-KOther Events

EVERSOURCE ENERGY 8-K Report (Mar 22, 2002)

Filed March 22, 2002For Securities:ES

Summary

Northeast Utilities (the Company) filed an 8-K on March 22, 2002, to report a significant change in its independent auditor. Effective March 15, 2002, the Board of Trustees, upon recommendation from its Audit Committee, decided not to re-engage Arthur Andersen LLP as its independent public accountants for the upcoming audit of the year-ending December 31, 2002 financial statements. This decision follows the Company's exploration of proposals from other accounting firms. Concurrently, the Company has appointed Deloitte & Touche as its new independent auditors for the fiscal year ending December 31, 2002. This appointment will be presented to shareholders for a nonbinding ratification at the upcoming Annual Meeting of Stockholders on May 14, 2002. The filing clarifies that there were no disagreements with Arthur Andersen on accounting principles or disclosures, and no prior consultations with Deloitte & Touche regarding accounting matters.

Key Highlights

  • 1Northeast Utilities is changing its independent auditor, moving from Arthur Andersen LLP to Deloitte & Touche.
  • 2The decision to change auditors was made by the Board of Trustees based on an Audit Committee recommendation.
  • 3The change is effective March 15, 2002, with Deloitte & Touche engaged for the audit of the year ending December 31, 2002.
  • 4The company sought proposals from other independent accountants before making the change.
  • 5There were no disagreements with Arthur Andersen regarding accounting principles, financial statement disclosures, or auditing procedures.
  • 6Arthur Andersen's reports for 2000 and 1999 were unqualified.
  • 7The appointment of Deloitte & Touche will be subject to a nonbinding shareholder ratification at the May 14, 2002 annual meeting.

Frequently Asked Questions

Northeast Utilities changed its independent auditor as part of a decision to seek proposals from other accounting firms for the upcoming audit. The decision not to re-engage Arthur Andersen LLP was made by the Board of Trustees based on a recommendation from its Audit Committee.

No, the filing explicitly states there were no disagreements with Arthur Andersen on any matter of accounting principle or practice, financial statement disclosure, or auditing scope or procedure. Arthur Andersen's past audit reports for 2000 and 1999 were unqualified.

Deloitte & Touche has been appointed as the new independent auditors. Their appointment will be submitted to shareholders for a nonbinding ratification at the Company's Annual Meeting of Stockholders on May 14, 2002.

According to the filing, Northeast Utilities did not consult with Deloitte & Touche regarding the application of accounting principles to specific transactions or the type of audit opinion prior to their appointment as independent auditors.