8-KOther Events

EVERSOURCE ENERGY 8-K Report, Corporate Update (May 14, 2008)

Filed May 14, 2008For Securities:ES

Summary

Eversource Energy, through its subsidiaries Northeast Utilities (NU), The Connecticut Light and Power Company (CL&P), and Western Massachusetts Electric Company (WMECO), announced updated plans for its New England East West Solution (NEEWS) transmission upgrade projects. These projects aim to enhance east-west power transfer capabilities across New England, address critical reliability issues in specific regions like Springfield, MA, and Rhode Island, and alleviate interstate transmission constraints. The total estimated investment for NU's portion of these projects has increased to approximately $1.49 billion, up from $1.4 billion, with completion targeted for the end of 2013. The company expects to undertake construction of some NEEWS components jointly with National Grid. The NEEWS initiative comprises three major projects: the Greater Springfield Reliability Project, the Interstate Reliability Project, and the Central Connecticut Reliability Project, alongside several smaller reliability expenditures. The Greater Springfield Reliability Project is the largest component, with an estimated cost of $715 million, and involves significant upgrades including a new 345 kV transmission line and substation work. Regulatory filings for these projects are anticipated to commence in the latter half of 2008, with siting approvals expected in 2009-2010, and construction slated to begin by the end of 2010.

Key Highlights

  • 1Eversource Energy (via NU, CL&P, WMECO) is proceeding with the New England East West Solution (NEEWS) transmission upgrade projects.
  • 2The estimated investment for NU's portion of NEEWS has increased to $1.49 billion, a slight rise from the previous $1.4 billion estimate.
  • 3Project completion is currently projected for the end of 2013.
  • 4Key objectives include improving east-west transmission capacity, enhancing reliability in Massachusetts and Rhode Island, and relieving interstate constraints.
  • 5The NEEWS initiative includes three major projects: Greater Springfield Reliability Project ($715 million), Interstate Reliability Project (~$250 million), and Central Connecticut Reliability Project (~$315 million).
  • 6Regulatory applications for major projects are expected in late 2008 and 2009, with construction to commence by the end of 2010.
  • 7There is a potential for cost increases beyond the current estimates due to regulatory requirements or the need for underground construction.

Frequently Asked Questions

NEEWS is a series of transmission upgrade projects planned by Northeast Utilities (NU) and its subsidiaries to enhance the east-west power transfer capabilities across New England. The projects aim to address reliability challenges, particularly in and around Springfield, Massachusetts, and within Rhode Island, and to alleviate constraints on interstate transmission lines.

The total estimated investment for NU's portion of the NEEWS projects has been updated to approximately $1.49 billion. This includes the three major projects and other smaller reliability expenditures.

The completion of all NEEWS projects is currently projected for the end of 2013.

The NEEWS projects consist of three major initiatives: the Greater Springfield Reliability Project (estimated at $715 million), the Interstate Reliability Project (estimated at $250 million), and the Central Connecticut Reliability Project (estimated at $315 million), along with approximately $210 million in other reliability-related expenditures.

Yes, the filing notes that regulatory reviews may necessitate changes in project configurations to address local concerns, which could increase construction costs beyond the current $1.49 billion estimate. Specifically, if 345 kV lines need to be built underground, this would significantly raise total costs.