2016 Q2 Form 10-Q Financial Statement

#000007274116000098 Filed on August 05, 2016

View on sec.gov

Income Statement

Concept 2016 Q2 2015 Q2
Revenue $1.767B $1.817B
YoY Change -2.75% 8.32%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $167.8M $163.7M
YoY Change 2.52% 7.53%
% of Gross Profit
Operating Expenses $1.344B $1.405B
YoY Change -4.36% 1.55%
Operating Profit $423.4M $412.0M
YoY Change 2.77% 40.14%
Interest Expense $100.5M $92.26M
YoY Change 8.92% -0.26%
% of Operating Profit 23.73% 22.39%
Other Income/Expense, Net $8.038M $12.90M
YoY Change -37.69% 133.42%
Pretax Income $331.0M $332.7M
YoY Change -0.51% 60.69%
Income Tax $125.4M $123.3M
% Of Pretax Income 37.9% 37.06%
Net Earnings $205.5M $209.4M
YoY Change -1.86% 62.07%
Net Earnings / Revenue 11.63% 11.52%
Basic Earnings Per Share $0.64 $0.65
Diluted Earnings Per Share $0.64 $0.65
COMMON SHARES
Basic Shares Outstanding 317.8M shares 317.6M shares
Diluted Shares Outstanding 318.5M shares 318.6M shares

Balance Sheet

Concept 2016 Q2 2015 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $39.00M $161.0M
YoY Change -75.78% 7.33%
Cash & Equivalents $39.00M $36.00M
Short-Term Investments $125.0M
Other Short-Term Assets $1.174B $62.88M
YoY Change 1766.93% -92.41%
Inventory $293.0M $290.0M
Prepaid Expenses
Receivables $806.0M $903.6M
Other Receivables $104.0M $117.0M
Total Short-Term Assets $2.415B $2.450B
YoY Change -1.43% 18.47%
LONG-TERM ASSETS
Property, Plant & Equipment $20.45B $19.08B
YoY Change 7.18% 6.12%
Goodwill $3.519B
YoY Change
Intangibles
YoY Change
Long-Term Investments $519.0M $498.0M
YoY Change 4.22% -3.11%
Other Assets $3.981B $316.8M
YoY Change 1156.56% -91.46%
Total Long-Term Assets $28.47B $8.351B
YoY Change 240.9% -67.53%
TOTAL ASSETS
Total Short-Term Assets $2.415B $2.450B
Total Long-Term Assets $28.47B $8.351B
Total Assets $30.88B $29.88B
YoY Change 3.36% 7.52%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $766.0M $599.0M
YoY Change 27.88% 6.58%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $767.0M $954.0M
YoY Change -19.6% 5.41%
Long-Term Debt Due $179.0M $278.9M
YoY Change -35.82% -29.58%
Total Short-Term Liabilities $2.304B $2.839B
YoY Change -18.85% 1.28%
LONG-TERM LIABILITIES
Long-Term Debt $9.436B $8.690B
YoY Change 8.59% 6.66%
Other Long-Term Liabilities $875.3M $876.0M
YoY Change -0.08% -67.08%
Total Long-Term Liabilities $8.478B $8.011B
YoY Change 5.83% -25.88%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.304B $2.839B
Total Long-Term Liabilities $8.478B $8.011B
Total Liabilities $10.78B $19.54B
YoY Change -44.82% 9.27%
SHAREHOLDERS EQUITY
Retained Earnings $2.963B $2.644B
YoY Change 12.04%
Common Stock $1.669B $1.669B
YoY Change 0.01%
Preferred Stock
YoY Change
Treasury Stock (at cost) -$310.0M -$310.0M
YoY Change 0.0%
Treasury Stock Shares 16.67M shares 16.67M shares
Shareholders Equity $10.51B $10.19B
YoY Change
Total Liabilities & Shareholders Equity $30.88B $29.88B
YoY Change 3.36% 7.52%

Cashflow Statement

Concept 2016 Q2 2015 Q2
OPERATING ACTIVITIES
Net Income $205.5M $209.4M
YoY Change -1.86% 62.07%
Depreciation, Depletion And Amortization $167.8M $163.7M
YoY Change 2.52% 7.53%
Cash From Operating Activities $478.4M $373.8M
YoY Change 27.98% -7.22%
INVESTING ACTIVITIES
Capital Expenditures -$437.7M -$377.8M
YoY Change 15.85% 0.67%
Acquisitions
YoY Change
Other Investing Activities -$4.600M $26.50M
YoY Change -117.36% 419.61%
Cash From Investing Activities -$442.2M -$351.3M
YoY Change 25.88% -5.11%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -48.50M -57.00M
YoY Change -14.91% -34.93%
NET CHANGE
Cash From Operating Activities 478.4M 373.8M
Cash From Investing Activities -442.2M -351.3M
Cash From Financing Activities -48.50M -57.00M
Net Change In Cash -12.30M -34.50M
YoY Change -64.35% -37.16%
FREE CASH FLOW
Cash From Operating Activities $478.4M $373.8M
Capital Expenditures -$437.7M -$377.8M
Free Cash Flow $916.1M $751.6M
YoY Change 21.89% -3.42%

Facts In Submission

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es Description Of Consolidation Of Yankee Companies
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Eversource consolidates CYAPC and YAEC because CL&P's, NSTAR Electric's, PSNH's and WMECO's combined ownership interest in each of these entities is greater than 50 percent. Intercompany transactions between CL&P, NSTAR Electric, PSNH and WMECO and the CYAPC and YAEC companies have been eliminated in consolidation of the Eversource financial statements. Access Northeast is a natural gas pipeline and storage project (the "Project") being developed jointly by Eversource, Spectra Energy Corp and National Grid. Access Northeast will enhance the Algonquin and Maritimes & Northeast pipeline systems using existing routes. Eversource and Spectra Energy Corp each own a 40 percent interest in the Project, with the remaining 20 percent interest owned by National Grid. The total projected cost for both the pipeline and the LNG storage is expected to be approximately $3 billion, to be funded in proportion to ownership interest (approximately $1.2 billion by Eversource), with anticipated in-service dates commencing in November 2018. Eversource’s cumulative equity investment in the Project as of June 30, 2016 of $20.7 million is presented in Other Long-Term Assets.
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CY2016Q2 es Public Utilities Property Plant And Equipment Electric And Natural Gas Utility Total
PublicUtilitiesPropertyPlantAndEquipmentElectricAndNaturalGasUtilityTotal
25359900000 USD
CY2016Q2 us-gaap Public Utilities Property Plant And Equipment Other Property Plant And Equipment
PublicUtilitiesPropertyPlantAndEquipmentOtherPropertyPlantAndEquipment
583500000 USD
CY2016Q2 us-gaap Public Utilities Property Plant And Equipment Plant In Service
PublicUtilitiesPropertyPlantAndEquipmentPlantInService
25943400000 USD
CY2016Q2 es Electric And Natural Gas Utility Accumulated Depreciation
ElectricAndNaturalGasUtilityAccumulatedDepreciation
6342900000 USD
CY2016Q2 es Other Accumulated Depreciation
OtherAccumulatedDepreciation
274500000 USD
CY2016Q2 us-gaap Public Utilities Property Plant And Equipment Accumulated Depreciation
PublicUtilitiesPropertyPlantAndEquipmentAccumulatedDepreciation
6617400000 USD
CY2016Q2 es Property Plant And Equipment Net Excluding Construction Work In Progress
PropertyPlantAndEquipmentNetExcludingConstructionWorkInProgress
19326000000 USD
CY2016Q2 us-gaap Public Utilities Property Plant And Equipment Construction Work In Progress
PublicUtilitiesPropertyPlantAndEquipmentConstructionWorkInProgress
1122500000 USD
CY2015Q4 us-gaap Public Utilities Property Plant And Equipment Distribution
PublicUtilitiesPropertyPlantAndEquipmentDistribution
13054800000 USD
CY2015Q4 es Public Utilities Property Plant And Equipment Distribution Natural Gas
PublicUtilitiesPropertyPlantAndEquipmentDistributionNaturalGas
2727200000 USD
CY2015Q4 us-gaap Public Utilities Property Plant And Equipment Transmission
PublicUtilitiesPropertyPlantAndEquipmentTransmission
7691900000 USD
CY2015Q4 us-gaap Public Utilities Property Plant And Equipment Generation Or Processing
PublicUtilitiesPropertyPlantAndEquipmentGenerationOrProcessing
1194100000 USD
CY2015Q4 es Public Utilities Property Plant And Equipment Electric And Natural Gas Utility Total
PublicUtilitiesPropertyPlantAndEquipmentElectricAndNaturalGasUtilityTotal
24668000000 USD
CY2015Q4 us-gaap Public Utilities Property Plant And Equipment Other Property Plant And Equipment
PublicUtilitiesPropertyPlantAndEquipmentOtherPropertyPlantAndEquipment
558600000 USD
CY2015Q4 us-gaap Public Utilities Property Plant And Equipment Plant In Service
PublicUtilitiesPropertyPlantAndEquipmentPlantInService
25226600000 USD
CY2015Q4 es Electric And Natural Gas Utility Accumulated Depreciation
ElectricAndNaturalGasUtilityAccumulatedDepreciation
6141100000 USD
CY2015Q4 es Other Accumulated Depreciation
OtherAccumulatedDepreciation
255600000 USD
CY2015Q4 us-gaap Public Utilities Property Plant And Equipment Accumulated Depreciation
PublicUtilitiesPropertyPlantAndEquipmentAccumulatedDepreciation
6396700000 USD
CY2015Q4 es Property Plant And Equipment Net Excluding Construction Work In Progress
PropertyPlantAndEquipmentNetExcludingConstructionWorkInProgress
18829900000 USD
CY2015Q4 us-gaap Public Utilities Property Plant And Equipment Construction Work In Progress
PublicUtilitiesPropertyPlantAndEquipmentConstructionWorkInProgress
1062500000 USD
us-gaap Description Of Derivative Activity Volume
DescriptionOfDerivativeActivityVolume
Commodity Supply and Price Risk Management: As required by regulation, CL&P, along with UI, has capacity-related contracts with generation facilities. CL&P has a sharing agreement with UI, with 80 percent of the costs or benefits of each contract borne by or allocated to CL&P and 20 percent borne by or allocated to UI. The combined capacity of these contracts is 787 MW. The capacity contracts extend through 2026 and obligate both CL&P and UI to make or receive payments on a monthly basis to or from the generation facilities based on the difference between a set capacity price and the capacity market price received in the ISO-NE capacity markets. In addition, CL&P has a contract to purchase 0.1 million MWh of energy per year through 2020. NSTAR Electric has a renewable energy contract to purchase 0.1 million MWh of energy per year through 2018 and a capacity-related contract to purchase up to 35 MW per year through 2019. As of June 30, 2016 and December 31, 2015, Eversource had NYMEX financial contracts for natural gas futures in order to reduce variability associated with the purchase price of approximately 7.1 million and 9.1 million MMBtu of natural gas, respectively.
es Derivative Instruments Gain Loss Recognized In Regulatory Asset Liability
DerivativeInstrumentsGainLossRecognizedInRegulatoryAssetLiability
-74400000 USD
es Derivative Instruments Gain Loss Recognized In Regulatory Asset Liability
DerivativeInstrumentsGainLossRecognizedInRegulatoryAssetLiability
-50100000 USD
CY2016Q2 es Derivative Instruments Gain Loss Recognized In Regulatory Asset Liability
DerivativeInstrumentsGainLossRecognizedInRegulatoryAssetLiability
-42900000 USD
CY2015Q2 es Derivative Instruments Gain Loss Recognized In Regulatory Asset Liability
DerivativeInstrumentsGainLossRecognizedInRegulatoryAssetLiability
-36600000 USD
es Fairvalueinputsexitpricepremium
Fairvalueinputsexitpricepremium
Exit price premiums of 4 percent through 21 percent are also applied on these contracts and reflect the uncertainty and illiquidity premiums that would be required based on the most recent market activity available for similar type contracts
CY2016Q2 us-gaap Available For Sale Securities Debt Maturities After One Through Five Years Amortized Cost
AvailableForSaleSecuritiesDebtMaturitiesAfterOneThroughFiveYearsAmortizedCost
61600000 USD
CY2015Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value
FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue
406800000 USD
CY2015Q2 es Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Liability Gain Loss Included In Reg Asset Liability
FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetLiabilityGainLossIncludedInRegAssetLiability
-37100000 USD
CY2016Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value
FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue
387700000 USD
CY2016Q2 es Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Liability Gain Loss Included In Reg Asset Liability
FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetLiabilityGainLossIncludedInRegAssetLiability
-46600000 USD
CY2016Q2 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Settlements
FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilitySettlements
21700000 USD
CY2015Q2 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Settlements
FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilitySettlements
21500000 USD
CY2015Q4 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value
FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue
380900000 USD
CY2014Q4 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value
FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue
415400000 USD
es Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Liability Gain Loss Included In Reg Asset Liability
FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetLiabilityGainLossIncludedInRegAssetLiability
-76600000 USD
es Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Liability Gain Loss Included In Reg Asset Liability
FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetLiabilityGainLossIncludedInRegAssetLiability
-49200000 USD
us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Settlements
FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilitySettlements
44900000 USD
us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Settlements
FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilitySettlements
42200000 USD
CY2016Q2 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value
FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue
412600000 USD
CY2016Q2 us-gaap Trading Securities Equity
TradingSecuritiesEquity
10600000 USD
CY2015Q4 us-gaap Trading Securities Equity
TradingSecuritiesEquity
14200000 USD
CY2016Q2 us-gaap Increase Decrease In Trading Securities
IncreaseDecreaseInTradingSecurities
200000 USD
CY2015Q2 us-gaap Increase Decrease In Trading Securities
IncreaseDecreaseInTradingSecurities
500000 USD
CY2016Q2 us-gaap Marketable Securities Restricted Noncurrent
MarketableSecuritiesRestrictedNoncurrent
439500000 USD
CY2015Q4 us-gaap Marketable Securities Restricted Noncurrent
MarketableSecuritiesRestrictedNoncurrent
436900000 USD
us-gaap Increase Decrease In Trading Securities
IncreaseDecreaseInTradingSecurities
500000 USD
us-gaap Increase Decrease In Trading Securities
IncreaseDecreaseInTradingSecurities
2100000 USD
CY2016Q2 us-gaap Available For Sale Securities Debt Maturities Within One Year Amortized Cost
AvailableForSaleSecuritiesDebtMaturitiesWithinOneYearAmortizedCost
27200000 USD
CY2016Q2 us-gaap Available For Sale Securities Debt Maturities After Five Through Ten Years Amortized Cost
AvailableForSaleSecuritiesDebtMaturitiesAfterFiveThroughTenYearsAmortizedCost
45400000 USD
CY2016Q2 us-gaap Available For Sale Securities Debt Maturities After Ten Years Amortized Cost
AvailableForSaleSecuritiesDebtMaturitiesAfterTenYearsAmortizedCost
126800000 USD
CY2016Q2 us-gaap Available For Sale Securities Debt Maturities Within One Year Fair Value
AvailableForSaleSecuritiesDebtMaturitiesWithinOneYearFairValue
27200000 USD
CY2016Q2 us-gaap Available For Sale Securities Debt Maturities After One Through Five Years Fair Value
AvailableForSaleSecuritiesDebtMaturitiesAfterOneThroughFiveYearsFairValue
62400000 USD
CY2016Q2 us-gaap Available For Sale Securities Debt Maturities After Five Through Ten Years Fair Value
AvailableForSaleSecuritiesDebtMaturitiesAfterFiveThroughTenYearsFairValue
47200000 USD
CY2016Q2 us-gaap Available For Sale Securities Debt Maturities After Ten Years Fair Value
AvailableForSaleSecuritiesDebtMaturitiesAfterTenYearsFairValue
132600000 USD
CY2016Q2 us-gaap Available For Sale Securities Debt Securities
AvailableForSaleSecuritiesDebtSecurities
269400000 USD
CY2015Q4 us-gaap Accrual For Environmental Loss Contingencies
AccrualForEnvironmentalLossContingencies
51100000 USD
CY2016Q2 us-gaap Investments Fair Value Disclosure
InvestmentsFairValueDisclosure
544000000 USD
CY2016Q2 us-gaap Available For Sale Debt Securities Amortized Cost Basis
AvailableForSaleDebtSecuritiesAmortizedCostBasis
261000000 USD
CY2015Q4 us-gaap Investments Fair Value Disclosure
InvestmentsFairValueDisclosure
545700000 USD
us-gaap Line Of Credit Facility Description
LineOfCreditFacilityDescription
Commercial Paper Programs and Credit Agreements: Eversource parent has a $1.45 billion commercial paper program allowing Eversource parent to issue commercial paper as a form of short-term debt. As of June 30, 2016 and December 31, 2015, Eversource parent had $438 million and approximately $1.1 billion, respectively, in short-term borrowings outstanding under the Eversource parent commercial paper program, leaving $1.0 billion and $351.5 million of available borrowing capacity as of June 30, 2016 and December 31, 2015, respectively. The weighted-average interest rate on these borrowings as of June 30, 2016 and December 31, 2015 was 0.66 percent and 0.72 percent, respectively. As of June 30, 2016, there were intercompany loans from Eversource parent of $93 million to CL&P, $120.9 million to PSNH and $53.7 million to WMECO. As of December 31, 2015, there were intercompany loans from Eversource parent of $277.4 million to CL&P, $231.3 million to PSNH and $143.4 million to WMECO. Eversource parent, CL&P, PSNH, WMECO, NSTAR Gas and Yankee Gas are parties to a five-year $1.45 billion revolving credit facility, which terminates on September 4, 2020. The revolving credit facility serves to backstop Eversource parent's $1.45 billion commercial paper program. NSTAR Electric has a $450 million commercial paper program allowing NSTAR Electric to issue commercial paper as a form of short-term debt. As of June 30, 2016 and December 31, 2015, NSTAR Electric had $329 million and $62.5 million, respectively, in short-term borrowings outstanding under its commercial paper program, leaving $121 million and $387.5 million of available borrowing capacity as of June 30, 2016 and December 31, 2015, respectively. The weighted-average interest rate on these borrowings as of June 30, 2016 and December 31, 2015 was 0.44 percent and 0.40 percent, respectively. NSTAR Electric is a party to a five-year $450 million revolving credit facility, which terminates on September 4, 2020. The revolving credit facility serves to backstop NSTAR Electric's $450 million commercial paper program.
us-gaap Long Term Debt Description
LongTermDebtDescription
Long-Term Debt Issuances: Long-Term Debt Issuances: In March 2016, Eversource parent issued $250 million of 2.50 percent Series I Senior Notes due to mature in 2021 and $250 million of 3.35 percent Series J Senior Notes due to mature in 2026. The proceeds, net of issuance costs, were used to repay short-term borrowings under the Eversource parent commercial paper program. In May 2016, NSTAR Electric issued $250 million of 2.70 percent debentures, due to mature in 2026. The proceeds, net of issuance costs, were used to repay short-term borrowings under the NSTAR Electric commercial paper program and fund capital expenditures and working capital. In June 2016, WMECO issued $50 million of 2.75 percent Series H Senior Notes, due to mature in 2026. The proceeds, net of issuance costs, were used to repay short-term borrowings. Long-Term Debt Repayments: In May 2016, NSTAR Electric repaid at maturity $200 million variable rate debentures, using short-term borrowings.
CY2015Q2 es Amount That Represents Deferred Regulatory Assets
AmountThatRepresentsDeferredRegulatoryAssets
800000 USD
es Amount That Represents Deferred Regulatory Assets
AmountThatRepresentsDeferredRegulatoryAssets
1600000 USD
CY2015 es Environmental Site Quantity
EnvironmentalSiteQuantity
64 pure
CY2016Q2 us-gaap Accrual For Environmental Loss Contingencies
AccrualForEnvironmentalLossContingencies
59500000 USD
es Environmental Site Quantity
EnvironmentalSiteQuantity
63 pure
us-gaap Loss Contingency Managements Assessment And Process
LossContingencyManagementsAssessmentAndProcess
C.        Spent Nuclear Fuel Litigation - Yankee Companies The Yankee Companies have filed separate complaints against the DOE in the Court of Federal Claims seeking monetary damages resulting from the DOE's failure to provide for a permanent facility to store spent nuclear fuel pursuant to the terms of the 1983 spent fuel and high level waste disposal contracts between the Yankee Companies and the DOE. The court had previously awarded the Yankee Companies damages for Phase I and Phase II of litigation resulting from the DOE's failure to meet its contractual obligations. Phase I covered damages incurred in the years 1998 through 2002 and Phase II covered damages incurred in the years 2001 through 2008 for CYAPC and YAEC and from 2002 through 2008 for MYAPC. DOE Phase III Damages - In August 2013, the Yankee Companies each filed subsequent lawsuits against the DOE seeking recovery of actual damages incurred in the years 2009 through 2012. The DOE Phase III trial concluded on July 1, 2015, followed by a post-trial briefing that concluded on October 14, 2015. On March 25, 2016, the court issued its decision, awarding CYAPC, YAEC and MYAPC damages of $32.6 million, $19.6 million and $24.6 million, respectively. In total, the Yankee Companies were awarded $76.8 million of the $77.9 million in damages sought by the Yankee Companies in Phase III. The decision became final on July 18, 2016. Management cannot predict the timing or amount of any customer refunds. At this time, the proceeds are primarily expected to be used by the Yankee Companies to fund remaining fuel storage obligations, and management does not expect any significant amounts to be refunded to Eversource utilities (CL&P, NSTAR Electric, PSNH and WMECO). The utilities would then ultimately refund any amounts received to utility customers. D.        FERC ROE Complaints FERC ROE Complaints I, II and III: Three separate complaints have been filed at FERC by combinations of New England state attorneys general, state regulatory commissions, consumer advocates, consumer groups, municipal parties and other parties (collectively the "Complainants"). In these three separate complaints, the Complainants challenged the NETOs' base ROE of 11.14 percent that had been utilized since 2006 and sought an order to reduce it prospectively from the date of the final FERC order and for the 15-month complaint refund periods stipulated in the separate complaints. In 2014, the FERC ordered a 10.57 percent base ROE for the first complaint refund period and prospectively from October 16, 2014, and that a utility's total or maximum ROE shall not exceed the top of the new zone of reasonableness, which was set at 11.74 percent. In late 2014, the NETOs made a compliance filing, and the Company began issuing refunds to customers from the first complaint period. The Company has refunded all amounts associated with the first complaint period. As a result of developments in this matter, the Company recorded reserves across the complaint periods at its electric subsidiaries in the first half of 2015 and recognized a pre-tax charge to earnings (excluding interest) of $20 million, of which $12.5 million was recorded at CL&P, $2.4 million at NSTAR Electric, $1 million at PSNH, and $4.1 million at WMECO. The pre-tax charge was recorded as a regulatory liability and as a reduction to Operating Revenues. The NETOs and Complainants have filed appeals for the first complaint to the D.C. Circuit Court of Appeals. A court decision is expected in late 2016. For the second and third complaints, the state parties, municipal utilities and FERC trial staff each believe that the base ROE should be reduced to an amount lower than 10.57 percent. The NETOs believe that the Complainants' positions are without merit. On March 22, 2016, the FERC ALJ issued an initial decision on the second and third FERC ROE complaints. For the second complaint period, the FERC ALJ recommended a zone of reasonableness of 7.12 percent to 10.42 percent and a base ROE of 9.59 percent. For the third complaint period, the FERC ALJ recommended a zone of reasonableness of 7.04 percent to 12.19 percent and a base ROE of 10.90 percent. The FERC ALJ also affirmed that the maximum ROE for transmission incentive projects should be the top of the zone of reasonableness. The NETOs filed briefs on April 21, 2016, in which the NETOs identified corrections and requested changes that should be made to the FERC ALJ’s recommendations. A final FERC order is expected in late 2016 or early 2017. The Company believes that the range of potential loss for the second complaint period (the 15-month period beginning December 27, 2012) is from a base ROE of 10.57 percent to a base ROE of 9.59 percent. As the FERC ALJ initial decision on the third complaint recommended a base ROE of 10.90 percent, the Company concluded there is currently no range of potential loss for that complaint period. Given the differences between the recommended base ROEs in the FERC ALJ’s initial decision on the second and third complaints, as well as other factors, the Company is unable to predict the outcome of the final FERC order on these complaints. The Company does not believe any base ROE outcome within the 10.57 percent to 9.59 percent range is more likely than the base ROEs used to record the current revenues and reserves, and therefore the Company believes that the current reserves for the second complaint period are appropriate at this time. The impact of a 10 basis point change to the existing base ROE of 10.57 percent would affect Eversource's after-tax earnings by approximately $3 million for each of the 15-month second and third complaint periods.  If the Company adjusted its reserves based on the recommendations in the FERC ALJ initial decision (for both the base ROE and maximum ROE for transmission incentive projects) for the second and third complaints, then it would result in an after-tax increase of approximately $34 million and an after-tax decrease of approximately $8 million, respectively, to the existing reserves. FERC ROE Complaint IV: On April 29, 2016, a fourth complaint was filed with the FERC by certain municipal utilities claiming the current base ROE of 10.57 percent and the incentive cap of 11.74 percent are unjust and unreasonable. The NETOs answered on June 3, 2016 and requested that FERC dismiss the complaint. At this time FERC has not taken any action with respect to this complaint; therefore the Company is unable to predict the outcome of this complaint. E.        PSNH Generation Restructuring On June 10, 2015, Eversource and PSNH entered into the 2015 Public Service Company of New Hampshire Restructuring and Rate Stabilization Agreement (the Agreement) with the New Hampshire Office of Energy and Planning, certain members of the NHPUC staff, the Office of Consumer Advocate, two State Senators, and several other parties. The Agreement was filed with the NHPUC on the same day. Under the terms of the Agreement, PSNH agreed to divest its generation assets upon NHPUC approval. The Agreement is designed to provide a resolution of issues pertaining to PSNH's generation assets in pending regulatory proceedings before the NHPUC. The Agreement provided for the Clean Air Project prudence proceeding to be resolved and all remaining Clean Air Project costs to be included in rates effective January 1, 2016. As part of the Agreement, PSNH agreed to forego recovery of $25 million of the deferred equity return related to the Clean Air Project. In addition, PSNH will not seek a general distribution rate increase effective before July 1, 2017 and will contribute $5 million to create a clean energy fund, which will not be recoverable from its customers. In 2015, PSNH recorded the $5 million contribution as a long-term liability and an increase to Operations and Maintenance expense on the statements of income. On July 1, 2016, the NHPUC approved the Agreement in an order that, among other things, instructs PSNH to begin the process to divest its generation assets. The NHPUC is in the process of selecting an auction adviser to assist with the divestiture. Upon completion of the divestiture process, all remaining stranded costs will be recovered via bonds that will be secured by a non-bypassable charge or through recoveries in rates billed to PSNH's customers. If the NHPUC approves the sale of the plants, the Company expects the plants will be sold prior to the end of 2017. The sales price of the generating assets could be less than the carrying value, but the Company believes that full recovery of PSNH's generation assets is probable through a combination of cash flows during the remaining operating period, sales proceeds upon divestiture, and recovery of stranded costs in future rates. F.        Eversource and NSTAR Electric Boston Harbor Civil Action On July 15, 2016, the United States Army Corps of Engineers filed a civil action in the United States District Court for the District of Massachusetts under provisions of the Rivers and Harbors Act of 1899 and the Clean Water Act against NSTAR Electric, Harbor Electric Energy Company, a wholly-owned subsidiary of NSTAR Electric (“HEEC”), and the Massachusetts Water Resources Authority (together with NSTAR Electric and HEEC, the “Defendants”). The action alleges that the Defendants failed to comply with certain permitting requirements relating to the placement of the HEEC-owned electric distribution cable beneath Boston Harbor. The action seeks an order to force HEEC to comply with cable depth requirements in the U.S. Army Corps of Engineers' permit or alternatively to remove the electric distribution cable and cease unauthorized work in U.S. waterways. The action also seeks civil penalties and other costs. Management believes it has valid defenses to the claims and intends to defend it vigorously; concurrently, NSTAR Electric and HEEC are seeking to work collaboratively with all parties for a mutually beneficial resolution. At this time, management is unable to predict the outcome of this action or the impact on Eversource's and NSTAR Electric’s financial position, results of operations, or cash flows.
us-gaap Other Comprehensive Income Loss Before Reclassifications Net Of Tax
OtherComprehensiveIncomeLossBeforeReclassificationsNetOfTax
-1500000 USD
us-gaap Other Comprehensive Income Loss Before Reclassifications Net Of Tax
OtherComprehensiveIncomeLossBeforeReclassificationsNetOfTax
-1300000 USD
us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodNetOfTax
-2700000 USD
us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodNetOfTax
-3500000 USD
CY2014Q4 us-gaap Accumulated Other Comprehensive Income Loss Net Of Tax
AccumulatedOtherComprehensiveIncomeLossNetOfTax
-74000000 USD
CY2015Q2 us-gaap Accumulated Other Comprehensive Income Loss Net Of Tax
AccumulatedOtherComprehensiveIncomeLossNetOfTax
-72000000 USD
CY2016Q2 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
5
CY2015Q4 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
333862615 shares
CY2016Q2 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
333878402 shares
CY2016Q2 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
380000000 shares
CY2016Q2 us-gaap Treasury Stock Shares
TreasuryStockShares
16671366 shares
CY2015Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
16671366 shares
CY2015Q4 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
5
CY2015Q4 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
380000000 shares
CY2016Q2 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
317207036 shares
CY2015Q4 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
317191249 shares
CY2016Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
691204 shares
CY2015Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
946402 shares
CY2016Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
317785495 shares
CY2016Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
318476699 shares
CY2015Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
317613166 shares
CY2015Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
318559568 shares
CY2016Q2 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
0.64
CY2015Q2 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
0.65
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
317651319 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
827557 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
318478876 shares
us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
1.41
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
317352004 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
1173374 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
318525378 shares
us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
1.45
dei Entity Registrant Name
EntityRegistrantName
Eversource Energy
dei Document Type
DocumentType
10-Q
dei Document Period End Date
DocumentPeriodEndDate
2016-06-30
dei Entity Central Index Key
EntityCentralIndexKey
0000072741
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Entity Voluntary Filers
EntityVoluntaryFilers
No
dei Entity Well Known Seasoned Issuer
EntityWellKnownSeasonedIssuer
Yes
CY2016Q2 dei Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
317207036 shares
CY2016Q2 dei Entity Public Float
EntityPublicFloat
18939770997 USD
dei Entity Filer Category
EntityFilerCategory
Large Accelerated Filer
dei Entity Current Reporting Status
EntityCurrentReportingStatus
Yes

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