8-KOther Events

EVERSOURCE ENERGY 8-K Report, Corporate Update (Dec 18, 2008)

Filed December 18, 2008For Securities:ES

Summary

This Form 8-K filing by Northeast Utilities (NU), now Eversource Energy, reports on a joint petition filed with the Federal Energy Regulatory Commission (FERC) on December 12, 2008. Northeast Utilities Service Company and NSTAR Electric Company submitted this petition seeking a declaratory order to facilitate a bilateral transmission services agreement with H.Q. Energy Services (U.S.) Inc. (HQUS), a subsidiary of Hydro-Québec. The core of the petition is to secure FERC approval for selling 1,200 megawatts of firm electric transmission service over a new, participant-funded transmission line connecting New England with the Hydro-Québec system. This would enable HQUS to deliver firm electric power into New England for a minimum of twenty years, offering a competitive source of low-carbon power and expanding the region's transmission infrastructure without increasing regional rates.

Key Highlights

  • 1Northeast Utilities (NU) and NSTAR Electric Company jointly petitioned FERC on December 12, 2008, for a declaratory order.
  • 2The petition aims to enable a transmission services agreement with Hydro-Québec's US subsidiary (HQUS).
  • 3The agreement would involve selling 1,200 MW of firm transmission service over a new tie line connecting New England and Hydro-Québec.
  • 4This new transmission service would facilitate HQUS selling firm electric power into New England for at least 20 years.
  • 5The project is presented as a competitive source of low-carbon power and an expansion of New England's transmission system.
  • 6The transmission line is planned to be participant-funded, with HQUS reimbursing NU and NSTAR Electric for total project costs over 20 years, including an investment return.
  • 7NU anticipates its share of construction costs to be approximately $525 million, with construction potentially occurring between 2011 and 2014.

Frequently Asked Questions

The primary purpose is to obtain a declaratory order from FERC that would allow Northeast Utilities (NU) and NSTAR Electric Company to enter into a bilateral transmission services agreement with H.Q. Energy Services (U.S.) Inc. (HQUS). This agreement would facilitate the sale of 1,200 megawatts of firm electric transmission service.

The project is expected to provide a competitive source of low-carbon power for New England and expand the region's transmission system without increasing regional transmission rates. It also involves discussions for a long-term power purchase agreement to bring low-carbon power to benefit New England customers.

An NU subsidiary and NSTAR Electric will finance and own the transmission line. However, Hydro-Québec (HQ) will reimburse these companies for the total costs of the project, including an investment return, over a 20-year period.

NU's initial estimate for its portion of the construction funding is approximately $525 million. The total cost will be reimbursed by HQUS.