Western Massachusetts Electric 8-K Nu Reports on Third Quarter 2006 Results, Capital Expenditures, 2007 Earnings Guidance, Competitive Generation Sale

Exhibit 99.2

NORTHEAST UTILITIES AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30, 2006		December 31, 2005
	(Thousands of Dollars)
ASSETS
Current Assets:
Cash and cash equivalents	$	50,455	$	45,782
Special deposits		34,413		103,789
Investments in securitizable assets		273,085		252,801
Receivables, less provision for uncollectible accounts of $21,033 in 2006 and $24,444 in 2005		331,836		901,516
Unbilled revenues		62,984		175,853
Taxes receivable		152,047		—
Fuel, materials and supplies		175,886		206,557
Marketable securities - current		62,193		56,012
Derivative assets - current		104,567		403,507
Prepayments and other		81,009		129,242
Assets held for sale		861,901		101,784
		2,190,376		2,376,843
Property, Plant and Equipment:
Electric utility		6,929,584		6,378,838
Gas utility		853,718		825,872
Competitive energy		18,609		908,776
Other		277,621		254,659
		8,079,532		8,368,145
Less: Accumulated depreciation		2,600,329		2,551,322
		5,479,203		5,816,823
Construction work in progress		567,081		600,407
		6,046,284		6,417,230
Deferred Debits and Other Assets:
Regulatory assets		2,100,555		2,483,851
Goodwill		287,591		287,591
Prepaid pension		265,076		298,545
Marketable securities - long-term		51,556		56,527
Derivative assets - long-term		274,263		425,049
Other		276,838		223,439
		3,255,879		3,775,002
Total Assets	$	11,492,539	$	12,569,075

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

	September 30, 2006			December 31, 2005
	(Thousands of Dollars)
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes payable to banks	$	278,000		$	32,000
Long-term debt - current portion		26,309			22,673
Accounts payable		511,614			972,368
Accrued taxes		2,248			95,210
Accrued interest		62,309			47,742
Derivative liabilities - current		126,479			402,530
Counterparty deposits		220			28,944
Other		259,501			272,252
Liabilities of assets held for sale		349,055			101,511
		1,615,735			1,975,230
Rate Reduction Bonds		1,232,555			1,350,502
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes		1,489,425			1,306,340
Accumulated deferred investment tax credits		33,346			95,444
Deferred contractual obligations		289,944			358,174
Regulatory liabilities		773,466			1,273,501
Derivative liabilities - long-term		153,158			272,995
Other		358,959			364,157
		3,098,298			3,670,611
Capitalization:
Long-Term Debt		2,956,551			3,027,288
Preferred Stock of Subsidiary - Non-Redeemable		116,200			116,200
Common Shareholders’ Equity:
Common shares, $5 par value - authorized
225,000,000 shares; 175,250,911 shares issued and 153,968,400 shares outstanding in 2006 and 174,897,704 shares issued and 153,225,892 shares outstanding in 2005		876,255			874,489
Capital surplus, paid in		1,444,695			1,437,561
Deferred contribution plan - employee stock ownership plan		(37,073	)		(46,884	)
Retained earnings		544,700			504,301
Accumulated other comprehensive income		5,463			19,987
Treasury stock, 19,680,010 shares in 2006 and 19,645,511 shares in 2005		(360,840	)		(360,210	)
Common Shareholders’ Equity		2,473,200			2,429,244
Total Capitalization		5,545,951			5,572,732
Total Liabilities and Capitalization	$	11,492,539		$	12,569,075

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/(LOSS)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2006			2005			2006			2005
	(Thousands of Dollars, except share information)
Operating Revenues	$	1,594,096		$	1,754,942		$	5,402,545		$	5,519,519
Operating Expenses:
Operation -
Fuel, purchased and net interchange power		1,052,277			1,173,080			3,686,287			3,822,167
Other		248,154			268,350			823,626			785,839
Wholesale contract market changes, net		(4,781	)		101,218			14,910			359,684
Restructuring and impairment charges		1,287			4,807			9,712			28,461
Maintenance		55,918			50,454			143,539			136,976
Depreciation		61,290			56,035			179,645			166,293
Amortization		(8,639	)		79,902			48,755			127,021
Amortization of rate reduction bonds		49,161			46,123			141,836			133,029
Taxes other than income taxes		62,179			60,645			193,046			188,049
Total operating expenses		1,516,846			1,840,614			5,241,356			5,747,519
Operating Income/(Loss)		77,250			(85,672	)		161,189			(228,000	)
Interest Expense:
Interest on long-term debt		40,105			33,928			112,632			96,984
Interest on rate reduction bonds		18,197			21,502			57,060			66,775
Other interest		4,479			3,864			18,105			15,178
Interest expense, net		62,781			59,294			187,797			178,937
Other Income, Net		13,871			11,768			41,967			27,962
Income/(Loss) from Continuing Operations Before
Income Tax Benefit		28,340			(133,198	)		15,359			(378,975	)
Income Tax Benefit		(75,702	)		(34,856	)		(85,087	)		(131,729	)
Income/(Loss) from Continuing Operations Before
Preferred Dividends of Subsidiary		104,042			(98,342	)		100,446			(247,246	)
Preferred Dividends of Subsidiary		1,390			1,390			4,169			4,169
Income/(Loss) from Continuing Operations		102,652			(99,732	)		96,277			(251,415	)
Discontinued Operations:
Income from Discontinued Operations,
Before Income Taxes		15,945			8,906			54,792			20,370
Loss from Sale of Discontinued Operations		(1,605	)		—			(8,083	)		—
Income Tax Expense		5,543			3,666			19,401			8,870
Income from Discontinued Operations		8,797			5,240			27,308			11,500
Net Income/(Loss)	$	111,449		$	(94,492	)	$	123,585		$	(239,915	)
Basic and Fully Diluted Earnings/(Loss) Per Common Share:
Income/(Loss) from Continuing Operations	$	0.67		$	(0.77	)	$	0.63		$	(1.94	)
Income from Discontinued Operations		0.05			0.04			0.17			0.09
Basic and Fully Diluted Earnings/(Loss) Per Common Share	$	0.72		$	(0.73	)	$	0.80		$	(1.85	)
Basic Common Shares Outstanding (average)		153,883,480			129,957,408			153,651,610			129,585,519
Fully Diluted Common Shares Outstanding (average)		154,320,675			129,957,408			154,036,770			129,585,519

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)

	Nine Months Ended September 30,
	2006			2005
	(Thousands of Dollars)
Operating Activities:
Net income/(loss)	$	123,585		$	(239,915	)
Adjustments to reconcile to net cash flows provided by operating activities:
Wholesale contract market changes, net		2,089			359,684
Restructuring and impairment charges		9,202			53,194
Bad debt expense		25,665			21,758
Depreciation		182,752			175,443
Deferred income taxes		130,432			(122,012	)
Amortization		48,755			127,021
Amortization of rate reduction bonds		141,836			133,029
Amortization of recoverable energy costs		6,481			22,158
Pension expense		20,626			24,699
Wholesale contract buyout payments		—			(145,231	)
Regulatory refunds		(150,541	)		(91,796	)
Derivative assets and liabilities		(80,511	)		4,466
Deferred contractual obligations		(72,255	)		(67,065	)
Other non-cash adjustments		940			52,303
Other sources of cash		9,375			—
Other uses of cash		(17,398	)		(4,136	)
Changes in current assets and liabilities:
Receivables and unbilled revenues, net		658,768			(1,137	)
Fuel, materials and supplies		14,831			(33,979	)
Investments in securitizable assets		(20,284	)		(81,551	)
Other current assets		23,533			48,984
Accounts payable		(461,183	)		50,800
Counterparty deposits and margin special deposits		38,842			33,761
(Taxes receivable)/accrued taxes		(245,009	)		32,332
Other current liabilities		(10,265	)		(54	)
Net cash flows provided by operating activities		380,266			352,756
Investing Activities:
Investments in property and plant:
Electric, gas and other utility plant		(583,083	)		(508,116	)
Competitive energy assets		(17,219	)		(13,421	)
Cash flows used for investments in property and plant		(600,302	)		(521,537	)
Net proceeds from sale of property		903			24,649
Cash payments for sales of competitive businesses		(19,429	)		—
Proceeds from sales of investment securities		127,010			96,471
Purchases of investment securities		(123,319	)		(108,944	)
Rate reduction bond escrow		(54,357	)		(8,069	)
Other investing activities		2,971			15,291
Net cash flows used in investing activities		(666,523	)		(502,139	)
Financing Activities:
Issuance of common shares		6,310			8,161
Issuance of long-term debt		250,000			300,000
Retirement of rate reduction bonds		(117,947	)		(147,347	)
Increase in short-term debt		246,000			128,000
Reacquisitions and retirements of long-term debt		(11,053	)		(52,061	)
Cash dividends on common shares		(83,560	)		(64,785	)
Other financing activities		1,180			16,620
Net cash flows provided by financing activities		290,930			188,588
Net increase in cash and cash equivalents		4,673			39,205
Cash and cash equivalents - beginning of period		45,782			46,989
Cash and cash equivalents - end of period	$	50,455		$	86,194

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.