8-KOther Events

EVERSOURCE ENERGY 8-K Report, Corporate Update (Mar 27, 2012)

Filed March 27, 2012For Securities:ES

Summary

This Form 8-K filing by Northeast Utilities (NU) on March 27, 2012, announces a significant development in its proposed merger with NSTAR. The Connecticut Public Utility Regulatory Authority (PURA) issued a Draft Decision on March 26, 2012, approving the merger subject to specific conditions. PURA found the merger to be in the public interest, citing NU's suitability and ability to provide safe, adequate, and reliable service. The Draft Decision also approved a settlement agreement with various Connecticut parties, which includes substantial benefits for CL&P customers, such as a $25 million rate credit and a rate freeze until December 2014. Additional provisions of the settlement focus on energy efficiency programs, microgrid development, charitable commitments, storm response, and system resiliency investments. This development is a crucial step towards consummating the merger, with final decisions from PURA and the Massachusetts DPU expected soon, potentially leading to the merger's completion by mid-April 2012.

Key Highlights

  • 1Connecticut PURA issued a Draft Decision approving the Northeast Utilities (NU) and NSTAR merger, subject to specific conditions.
  • 2PURA found the merger to be in the public interest, citing NU's financial, technological, and managerial suitability.
  • 3A settlement agreement was approved, including a $25 million rate credit for CL&P customers and a rate freeze until December 1, 2014.
  • 4The settlement also mandates $15 million for energy efficiency programs and investments in microgrid infrastructure.
  • 5Other settlement terms include improved storm response, a lineman apprenticeship program, and $300 million for system resiliency.
  • 6Final decisions from PURA (expected April 2, 2012) and Massachusetts DPU (expected April 4, 2012) are pending.
  • 7Northeast Utilities expects the merger to be consummated by April 16, 2012, if all approvals are received.

Frequently Asked Questions

The main event is the issuance of a Draft Decision by the Connecticut Public Utility Regulatory Authority (PURA) approving the proposed merger between Northeast Utilities (NU) and NSTAR, subject to certain conditions and the terms of a settlement agreement.

The settlement agreement provides a $25 million rate credit for CL&P customers and freezes CL&P rates until December 1, 2014. It also includes $15 million for energy efficiency programs and significant investments in system resiliency.

Northeast Utilities expects the merger to be consummated by April 16, 2012, provided that acceptable final decisions are issued by both the Connecticut PURA (expected April 2, 2012) and the Massachusetts DPU (expected April 4, 2012).

Yes, in addition to the Connecticut PURA, Northeast Utilities and NSTAR are awaiting approval from the Massachusetts Department of Public Utilities (DPU).