Western Massachusetts Electric 8-K Results of Operations and Financial Condition

NORTHEAST UTILITIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
		June 30,		December 31,
(Thousands of Dollars)		2010		2009
ASSETS
Current Assets:
Cash and Cash Equivalents	$	88,775	$	26,952
Receivables, Net		495,640		512,770
Unbilled Revenues		178,838		229,326
Fuel, Materials and Supplies		226,200		277,085
Marketable Securities		72,684		66,236
Derivative Assets		28,887		31,785
Prepayments and Other Current Assets		121,835		123,700
Total Current Assets		1,212,859		1,267,854
Property, Plant and Equipment, Net		9,142,320		8,839,965
Deferred Debits and Other Assets:
Regulatory Assets		3,183,982		3,244,931
Goodwill		287,591		287,591
Marketable Securities		47,995		54,905
Derivative Assets		160,380		189,751
Other Long-Term Assets		194,596		172,682
Total Deferred Debits and Other Assets		3,874,544		3,949,860
Total Assets	$	14,229,723	$	14,057,679

The data contained in this report is preliminary and is unaudited.  This report is being submitted for the sole purpose of providing information to present shareholders about Northeast Utilities and Subsidiaries and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities.

NORTHEAST UTILITIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
		June 30,		December 31,
(Thousands of Dollars)		2010		2009
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes Payable to Banks	$	157,313	$	100,313
Long-Term Debt - Current Portion		66,286		66,286
Accounts Payable		390,046		457,582
Accrued Taxes		55,071		50,246
Accrued Interest		87,784		83,763
Derivative Liabilities		41,176		37,617
Other Current Liabilities		167,948		183,605
Total Current Liabilities		965,624		979,412
Rate Reduction Bonds		313,835		442,436
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes		1,456,537		1,380,143
Accumulated Deferred Investment Tax Credits		20,666		22,145
Regulatory Liabilities		444,957		485,706
Derivative Liabilities		1,009,849		955,646
Accrued Pension		799,762		781,431
Other Long-Term Liabilities		806,393		823,723
Total Deferred Credits and Other Liabilities		4,538,164		4,448,794
Capitalization:
Long-Term Debt		4,635,851		4,492,935
Noncontrolling Interest in Consolidated Subsidiary:
Preferred Stock Not Subject to Mandatory Redemption		116,200		116,200
Equity:
Common Shareholders' Equity:
Common Shares		978,429		977,276
Capital Surplus, Paid In		1,767,904		1,762,097
Deferred Contribution Plan		-		(2,944)
Retained Earnings		1,313,848		1,246,543
Accumulated Other Comprehensive Loss		(41,805)		(43,467)
Treasury Stock		(359,392)		(361,603)
Common Shareholders' Equity		3,658,984		3,577,902
Noncontrolling Interest		1,065		-
Total Equity		3,660,049		3,577,902
Total Capitalization		8,412,100		8,187,037
Total Liabilities and Capitalization	$	14,229,723	$	14,057,679
The data contained in this report is preliminary and is unaudited.  This report is being submitted for the sole purpose of providing information to present shareholders about Northeast Utilities and Subsidiaries and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities.

NORTHEAST UTILITIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
	Three Months Ended June 30,				Six Months Ended June 30,
(Thousands of Dollars, Except Share Information)	2010		2009		2010		2009
Operating Revenues	$	1,111,426	$	1,224,431	$	2,450,845	$	2,817,914
Operating Expenses:
Fuel, Purchased and Net Interchange Power		442,230		583,599		1,045,578		1,422,519
Other Operating Expenses		206,664		234,821		454,937		482,266
Maintenance		66,817		56,367		112,454		105,203
Depreciation		79,075		77,768		157,731		154,751
Amortization of Regulatory Assets/(Liabilities), Net		8,893		(13,039)		566		8,652
Amortization of Rate Reduction Bonds		54,997		51,305		114,567		107,202
Taxes Other Than Income Taxes		74,406		54,424		160,005		140,853
Total Operating Expenses		933,082		1,045,245		2,045,838		2,421,446
Operating Income		178,344		179,186		405,007		396,468
Interest Expense:
Interest on Long-Term Debt		58,522		56,774		115,791		112,458
Interest on Rate Reduction Bonds		5,633		9,607		12,324		20,232
Other Interest		3,042		(1,423)		6,343		3,245
Interest Expense		67,197		64,958		134,458		135,935
Other Income, Net		1,552		12,409		9,608		16,591
Income Before Income Tax Expense		112,699		126,637		280,157		277,124
Income Tax Expense		39,351		42,394		119,209		93,817
Net Income		73,348		84,243		160,948		183,307
Net Income Attributable to Noncontrolling Interests		1,402		1,389		2,792		2,779
Net Income Attributable to Controlling Interests	$	71,946	$	82,854	$	158,156	$	180,528
Basic and Fully Diluted Earnings Per Common Share	$	0.41	$	0.47	$	0.90	$	1.07
Dividends Declared Per Common Share	$	0.26	$	0.24	$	0.51	$	0.48
Weighted Average Common Shares Outstanding:
Basic		176,571,189		175,175,936		176,460,476		168,758,206
Fully Diluted		176,736,532		175,675,388		176,637,003		169,300,277
The data contained in this report is preliminary and is unaudited.  This report is being submitted for the sole purpose of providing information to present shareholders about Northeast Utilities and Subsidiaries and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities.

NORTHEAST UTILITIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
		Six Months Ended June 30,
(Thousands of Dollars)		2010		2009
Operating Activities:
Net Income	$	160,948	$	183,307
Adjustments to Reconcile Net Income to Net Cash Flows
Provided by Operating Activities:
Bad Debt Expense		17,176		17,986
Depreciation		157,731		154,751
Deferred Income Taxes		37,850		73,202
Pension and PBOP Expense, Net of PBOP Contributions		25,529		13,052
Regulatory Overrecoveries, Net		21,569		20,732
Amortization of Regulatory Assets/(Liabilities), Net		566		8,652
Amortization of Rate Reduction Bonds		114,567		107,202
Allowance for Equity Funds Used During Construction		(6,934)		(3,366)
Derivative Assets and Liabilities		(5,640)		(19,243)
Other		(22,773)		1,164
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net		34,703		158,175
Fuel, Materials and Supplies		52,024		35,582
Taxes Receivable/(Accrued)		(3,856)		(8,244)
Other Current Assets		14,682		7,139
Accounts Payable		(53,480)		(211,445)
Other Current Liabilities		(10,883)		(30,309)
Net Cash Flows Provided by Operating Activities		533,779		508,337
Investing Activities:
Investments in Property and Plant		(442,404)		(420,894)
Proceeds from Sales of Marketable Securities		95,452		147,702
Purchases of Marketable Securities		(96,546)		(149,482)
Other Investing Activities		(4,369)		2,939
Net Cash Flows Used in Investing Activities		(447,867)		(419,735)
Financing Activities:
Issuance of Common Shares		-		387,411
Cash Dividends on Common Shares		(90,194)		(78,921)
Cash Dividends on Preferred Stock		(2,779)		(2,779)
Increase/(Decrease) in Short-Term Debt		57,000		(124,908)
Issuance of Long-Term Debt		145,000		312,000
Retirements of Long-Term Debt		(4,286)		(54,286)
Retirements of Rate Reduction Bonds		(128,600)		(120,326)
Financing Fees		(1,482)		(15,456)
Other Financing Activities		1,252		(5)
Net Cash Flows (Used in)/Provided by Financing Activities		(24,089)		302,730
Net Increase in Cash and Cash Equivalents		61,823		391,332
Cash and Cash Equivalents - Beginning of Period		26,952		89,816
Cash and Cash Equivalents - End of Period	$	88,775	$	481,148
The data contained in this report is preliminary and is unaudited.  This report is being submitted for the sole purpose of providing information to present shareholders about Northeast Utilities and Subsidiaries and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities.