8-KOther Events

EVERSOURCE ENERGY 8-K Report, Corporate Update (Jan 5, 2012)

Filed January 5, 2012For Securities:ES

Summary

This Form 8-K filing by Northeast Utilities (NU) on January 5, 2012, reports a significant development regarding its proposed merger with NSTAR. The Connecticut Public Utilities Regulatory Authority (PURA) issued a draft decision on January 4, 2012, reversing its earlier stance and now requiring NU and NSTAR to seek PURA approval for the merger under Connecticut law. This changes the regulatory landscape from what was previously understood. Investors should note that this draft decision introduces a new hurdle for the merger's completion. The company is actively engaging with PURA, with written exceptions due by January 9, 2012, and oral arguments scheduled for January 12, 2012. PURA's final decision on jurisdiction is expected by January 18, 2012. Meanwhile, the merger is still awaiting approval from the Massachusetts Department of Public Utilities. This regulatory uncertainty in Connecticut could impact the timeline and ultimate success of the merger.

Key Highlights

  • 1PURA issued a draft decision on January 4, 2012, requiring NU and NSTAR to seek approval for their merger.
  • 2This decision reverses PURA's prior declaratory ruling that it lacked jurisdiction over the merger.
  • 3The draft decision mandates approval under Connecticut law prior to the merger's completion.
  • 4Written exceptions and briefs are due to PURA by January 9, 2012.
  • 5Oral arguments are scheduled for January 12, 2012.
  • 6PURA expects to issue its final decision on jurisdiction by January 18, 2012.
  • 7Approval from the Massachusetts Department of Public Utilities is still pending.

Frequently Asked Questions

The main event is the Connecticut Public Utilities Regulatory Authority (PURA) issuing a draft decision on January 4, 2012, stating that Northeast Utilities (NU) and NSTAR must seek PURA approval for their pending merger, reversing a previous ruling where PURA stated it did not have jurisdiction.

The PURA draft decision introduces a new regulatory approval requirement that could potentially delay the merger's completion. The company is actively responding to the draft, with key dates for submissions and oral arguments in January 2012, and a final decision expected by January 18, 2012. The ultimate impact on the timeline depends on PURA's final ruling and the subsequent approval process.

Yes, in addition to the developing situation with PURA in Connecticut, NU and NSTAR are still awaiting approval of the merger from the Massachusetts Department of Public Utilities.

NU and NSTAR must submit written exceptions and/or briefs to PURA by January 9, 2012. Oral arguments have been scheduled for January 12, 2012, and PURA is expected to issue its final decision on jurisdiction by January 18, 2012.