8-K/AOther Events

EVERSOURCE ENERGY 8-K/A Report (Nov 27, 2002)

Filed November 27, 2002For Securities:ES

Summary

This amended Form 8-K filing by Northeast Utilities (NU) and its subsidiaries addresses revised estimates for the decommissioning costs of three nuclear power units: Connecticut Yankee, Yankee Rowe, and Maine Yankee. These units have been permanently shut down and are undergoing decommissioning. Management has prepared new estimates which indicate an increase in total decommissioning costs by approximately $320 million ($150 million for Connecticut Yankee, $190 million for Yankee Rowe, and $40 million for Maine Yankee) compared to previous estimates. These prior estimates were already factored into approved rates by the Federal Energy Regulatory Commission (FERC). The primary drivers for these increased cost estimates are higher projected expenses related to spent fuel storage, security, and liability/property insurance. NU's operating subsidiaries hold significant ownership stakes in the entities responsible for these plants: Connecticut Light and Power Company (CL&P) has a share of the increase amounting to $103 million, Public Service Company of New Hampshire (PSNH) is responsible for $23 million, and Western Massachusetts Electric Company (WMECO) for $29 million. These subsidiaries are expected to seek recovery of these increased costs from their respective ratepayers through future rate applications with state and federal regulatory bodies, including the FERC.

Key Highlights

  • 1Revised decommissioning cost estimates for Connecticut Yankee, Yankee Rowe, and Maine Yankee nuclear units show a total increase of approximately $320 million.
  • 2Northeast Utilities' (NU) operating subsidiaries' share of the increased decommissioning costs amounts to approximately $155 million ($103M for CL&P, $23M for PSNH, $29M for WMECO).
  • 3The primary reasons for cost increases are higher projected expenses for spent fuel storage, security, and insurance.
  • 4Existing rates approved by FERC reflected prior, lower decommissioning cost estimates.
  • 5NU's subsidiaries plan to seek recovery of their increased cost shares from ratepayers via future rate applications.
  • 6The timing, amount, and outcome of these future rate filings are currently unpredictable.

Frequently Asked Questions

This filing is an amendment to a previous report to provide updated and increased cost estimates for the decommissioning of three permanently shut-down nuclear units (Connecticut Yankee, Yankee Rowe, and Maine Yankee). These revised estimates are higher than previously projected.

The total estimated decommissioning costs have increased by approximately $320 million across the three plants. This increase is primarily due to higher projected expenses for spent fuel storage, security, and liability/property insurance.

Northeast Utilities' electric operating subsidiaries, Connecticut Light and Power Company (CL&P), Public Service Company of New Hampshire (PSNH), and Western Massachusetts Electric Company (WMECO), collectively bear a share of these increased costs. Their combined responsibility is approximately $155 million.

The subsidiaries of Northeast Utilities intend to seek recovery of their respective shares of these increased decommissioning costs from their ratepayers through future rate applications filed with regulatory bodies like the FERC. However, the timing, amount, and ultimate outcome of these rate filings are uncertain.