8-KOther Events

EVERSOURCE ENERGY 8-K Report (Jan 22, 2004)

Filed January 22, 2004For Securities:ES

Summary

Eversource Energy (operating as Northeast Utilities and The Connecticut Light and Power Company) announced an update regarding a settlement agreement concerning incremental locational marginal pricing (LMP) costs incurred during 2003. The company, through its affiliate CL&P, reached an agreement in principle with its standard offer suppliers, including Select Energy, Inc., to resolve responsibility for these costs. While the definitive settlement agreement was due to be filed with the Federal Energy Regulatory Commission (FERC) by January 22, 2004, there has been a delay due to finalization of certain details, though the company anticipates resolution. In anticipation of this settlement, Northeast Utilities expects to record a pre-tax reserve of approximately $36 million (after-tax, or $0.28 per share) in its fourth quarter 2003 financial results. This development is important for investors to monitor as it represents a material financial impact and resolution of a potential ongoing cost dispute. Further details can be found in prior SEC filings, including a Form 8-K from December 22, 2003, and the company's September 30, 2003, 10-Q filing.

Key Highlights

  • 1Agreement in principle reached to settle responsibility for incremental locational marginal pricing (LMP) costs incurred in 2003.
  • 2The settlement involves The Connecticut Light and Power Company (CL&P), an affiliate of Northeast Utilities (NU), and its standard offer suppliers, including Select Energy, Inc.
  • 3A delay in filing the definitive settlement agreement with FERC has occurred due to outstanding details, but NU anticipates resolution.
  • 4Northeast Utilities plans to record a reserve of approximately $36 million (after-tax) in its fourth quarter 2003 financial results in anticipation of the settlement.
  • 5The after-tax impact of the reserve is estimated to be $0.28 per share.
  • 6Investors are directed to prior SEC filings (December 22, 2003, 8-K and September 30, 2003, 10-Q) for additional context on this matter.

Frequently Asked Questions

This 8-K filing reports an update on a settlement agreement in principle reached by The Connecticut Light and Power Company (CL&P), an affiliate of Northeast Utilities (NU), regarding responsibility for certain incremental locational marginal pricing (LMP) costs incurred during 2003.

Northeast Utilities anticipates recording a reserve of approximately $36 million after tax, which equates to about $0.28 per share, in its fourth quarter 2003 financial results in anticipation of the settlement's finalization.

The definitive settlement agreement filing with the Federal Energy Regulatory Commission (FERC) has been delayed because certain details of the agreement have not yet been finalized. However, Northeast Utilities believes these issues will be resolved.

Investors can find further information in Northeast Utilities' and CL&P's Current Report on Form 8-K dated December 22, 2003, and in Note 4 (Commitments and Contingencies) of the Consolidated Financial Statements within their Quarterly Report on Form 10-Q for the period ended September 30, 2003.