8-KMaterial AgreementsExhibits & Filings

EVERSOURCE ENERGY 8-K Report, Material Agreement (Mar 13, 2012)

Filed March 13, 2012For Securities:ES

Summary

This 8-K filing from Northeast Utilities (NU) on March 13, 2012, primarily announces a significant milestone in the proposed merger with NSTAR. Specifically, NU and NSTAR have entered into a comprehensive merger-related agreement with the Attorney General of Connecticut and the Connecticut Office of Consumer Counsel. This agreement addresses customer and environmental benefits and is crucial for allowing the merger to proceed. The terms include customer rate credits, a freeze on base distribution rates, and commitments to advancing Connecticut's energy goals, alongside maintaining certain business functions in the state for seven years. The filing also notes that this agreement, along with previously announced settlements in Massachusetts, is now subject to regulatory approval in both states. Approval from the Connecticut Public Utility Regulatory Authority (PURA) is expected on April 2, 2012, and from the Massachusetts Department of Public Utilities (DPU) on April 4, 2012. If approvals are received by these dates, the companies anticipate the merger could be consummated by April 16, 2012.

Key Highlights

  • 1Northeast Utilities (NU) and NSTAR have reached a comprehensive merger-related agreement with the Connecticut Attorney General and the Connecticut Office of Consumer Counsel.
  • 2The agreement is designed to provide substantial customer and environmental benefits, paving the way for the NU-NSTAR merger to proceed.
  • 3Key terms include customer rate credits, a freeze on base distribution rates in Connecticut, and commitments to support Connecticut's energy goals.
  • 4NU has committed to maintaining specific business functions and offices in Connecticut for seven years post-merger.
  • 5The agreement also includes commitments from NU's subsidiary, The Connecticut Light and Power Company, regarding distribution system resiliency and storm restoration cost recovery.
  • 6The agreement is subject to approval by the Connecticut Public Utility Regulatory Authority (PURA), with a decision expected by April 2, 2012.
  • 7The companies anticipate merger consummation by April 16, 2012, if regulatory approvals from both Connecticut (PURA) and Massachusetts (DPU) are obtained as scheduled.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce a material definitive agreement entered into by Northeast Utilities (NU) and NSTAR with the Connecticut Attorney General and the Connecticut Office of Consumer Counsel. This agreement is a critical step towards finalizing their previously announced merger.

The agreement includes several benefits for Connecticut customers, such as a rate credit, a freeze on base distribution rates, and a commitment to advancing Connecticut's energy goals. Additionally, NU's subsidiary, The Connecticut Light and Power Company, has agreed to increase spending on distribution system resiliency and cost recovery for storm restoration.

The agreement with Connecticut regulators, along with existing settlements in Massachusetts, now requires approval from the Connecticut Public Utility Regulatory Authority (PURA) and the Massachusetts Department of Public Utilities (DPU). PURA's decision is expected by April 2, 2012, and DPU's by April 4, 2012. If approvals are granted on schedule, the companies anticipate the merger could be completed by April 16, 2012.

Yes, as part of the agreement, NU has committed to maintaining certain business functions and offices within Connecticut for a period of seven years following the closing of the merger.