Exhibit 99.5
Unaudited NSTAR Electric Company Pro Forma Condensed Consolidated Financial Statements
The unaudited pro forma condensed consolidated financial statements present the impact on the financial position and results of operations of the newly structured NSTAR Electric Company (NSTAR Electric). Effective January 1, 2007, NSTAR, the parent company of Boston Edison Company (Boston Edison), completed the transfer of the assets, (consisting primarily of the utility distribution facilities, properties and other assets, and franchise rights), and liabilities, of its wholly-owned electric subsidiaries, Commonwealth Electric Company (ComElectric), Cambridge Electric Light Company (Cambridge Electric) and Canal Electric Company (Canal Electric) ("the acquired companies") to Boston Edison. The transfer of net assets was structured as a merger of ComElectric, Cambridge Electric and Canal Electric into Boston Edison. In connection with the merger, Boston Edison issued an aggregate of 25 shares of its Common Shares, par value of $1.00 per shar e, to NSTAR in exchange for the net assets of the acquired companies. The exchange rate was determined and allocated based on the percentage of common equity of ComElectric, Cambridge Electric and Canal Electric. The transfer of net assets was made pursuant to NSTAR's Rate Settlement Agreement of December 30, 2005 and was approved by the Massachusetts Department of Telecommunications and Energy (MDTE) and the Federal Energy Regulatory Commission (FERC). In connection with the transaction, Boston Edison changed its corporate name to NSTAR Electric Company, also effective January 1, 2007.
Included are the pro forma condensed consolidated balance sheets as of September 30, 2006 and December 31, 2005 and the pro forma condensed consolidated statements of income for the nine months ended September 30, 2006 and 2005 and for the years ended December 31, 2005, 2004, and 2003. These financial statements have been prepared based on certain pro forma adjustments, which represent the elimination of intercompany transactions between these entities, to the historical consolidated financial statements set forth in the NSTAR Electric (f.k.a. Boston Edison) Annual Report on Form 10-K for the years ended December 31, 2005, 2004, and 2003, and the Quarterly Report on Form 10-Q for the nine months ended September 30, 2006 and 2005, as filed with the Securities and Exchange Commission, and the audited financial statements of ComElectric and Cambridge Electric for the years ended December 31, 2005, 2004, and 2003 and the unaudited financial statements for the nine m onths ended September 30, 2006 and 2005. The very limited operations of Canal Electric support certain transmission requirements of ComElectric and Cambridge Electric; as such, all costs incurred by Canal Electric are billed to both ComElectric and Cambridge Electric, and, therefore, all revenues recorded by Canal Electric are eliminated in consolidation.
The unaudited pro forma condensed consolidated balance sheets as of September 30, 2006 and December 31, 2005 have been prepared as if the merger had occurred on December 31, 2005. The unaudited pro forma condensed statements of income for the nine months ended September 30, 2006 and 2005 and for the years ended December 31, 2005, 2004, and 2003 have been prepared as if the merger had occurred on January 1, 2003. Since this is a transaction between entities under common control and ownership, the pro forma financial statements are combined on an "as if" pooling basis. Accordingly, the historic cost of the acquired assets and liabilities are carried forward.
The unaudited pro forma condensed consolidated financial statements may not be indicative of the results that actually would have occurred if the companies were merged during the periods presented.
1
NSTAR Electric Company | |||||||||||||||||||
Unaudited Pro Forma Condensed Consolidated Balance Sheet | |||||||||||||||||||
September 30, 2006 | |||||||||||||||||||
(in thousands) | NSTAR Electric Co. (f.k.a. Boston Edison) |
| ComElectric |
| Cambridge Electric |
| Canal Electric |
| Pro Forma Adjustments (Note 2) |
| NSTAR Electric Pro Forma | ||||||||
Assets |
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| ||||||||||||||
|
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| ||
Net utility plant | $ | 2,673,657 |
| $ | 602,632 |
| $ | 161,631 |
| $ | 6,620 |
| $ | (6,620 | ) | $ | 3,437,920 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Equity investments and other |
| 13,137 |
|
| 2,109 |
|
| 2,667 |
|
| 1,261 |
|
| - |
|
| 19,174 | ||
|
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|
|
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|
|
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Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| Cash and cash equivalents |
| 6,979 |
|
| 1,839 |
|
| 503 |
|
| 21 |
|
| - |
|
| 9,342 | |
| Accounts receivable and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| accrued unbilled revenues |
| 279,673 |
|
| 59,953 |
|
| 23,377 |
|
| 65,336 |
|
| (69,307 | ) |
| 359,032 | |
| Regulatory assets |
| 253,270 |
|
| 84,903 |
|
| 40,696 |
|
| - |
|
| - |
|
| 378,869 | |
| Inventory |
| 14,385 |
|
| 7,337 |
|
| 2,496 |
|
| - |
|
| - |
|
| 24,218 | |
| Other current assets |
| 4,282 |
|
| 93 |
|
| 2,078 |
|
| 294 |
|
| (289 | ) |
| 6,458 | |
|
| Total current assets |
| 558,589 |
|
| 154,125 |
|
| 69,150 |
|
| 65,651 |
|
| (69,596 | ) |
| 777,919 |
|
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Deferred debits: |
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|
|
|
|
|
|
|
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|
|
|
| ||
| Regulatory assets |
| 1,324,507 |
|
| 549,049 |
|
| 61,717 |
|
| - |
|
| - |
|
| 1,935,273 | |
| Prepaid pension |
| 328,134 |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 328,134 | |
| Other |
| 19,976 |
|
| 76,514 |
|
| 12,372 |
|
| - |
|
| (67,231 | ) |
| 41,631 | |
|
| Total deferred debits |
| 1,672,617 |
|
| 625,563 |
|
| 74,089 |
|
| - |
|
| (67,231 | ) |
| 2,305,038 |
|
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|
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|
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|
|
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|
|
|
|
|
|
Refundable income taxes |
| 81,994 |
|
| 22,996 |
|
| 8,933 |
|
| - |
|
| - |
|
| 113,923 | ||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
| Total assets | $ | 4,999,994 |
| $ | 1,407,425 |
| $ | 316,470 |
| $ | 73,532 |
| $ | (143,447 | ) | $ | 6,653,974 |
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
2
NSTAR Electric Company | ||||||||||||||||||||
Unaudited Pro Forma Condensed Consolidated Balance Sheet | ||||||||||||||||||||
September 30, 2006 | ||||||||||||||||||||
(in thousands) | NSTAR Electric Co. (f.k.a. Boston Edison) |
| ComElectric |
| Cambridge Electric |
| Canal Electric |
| Pro Forma Adjustments (Note 2) |
| NSTAR Electric Pro Forma | |||||||||
Capitalization and Liabilities |
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| |||||||||||||||
Common equity: |
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| |||
| Common stock | $ | - |
| $ | 51,099 |
| $ | 8,665 |
| $ | 8,863 |
| $ | (68,627 | ) | $ | - | ||
| Premium on common stock |
| 597,843 |
|
| 212,310 |
|
| 69,132 |
|
| 44,701 |
|
| 68,627 |
|
| 992,613 | ||
| Retained earnings |
| 661,414 |
|
| 105,076 |
|
| 34,647 |
|
| 10,766 |
|
| - |
|
| 811,903 | ||
|
| Total common equity |
| 1,259,257 |
|
| 368,485 |
|
| 112,444 |
|
| 64,330 |
|
| - |
|
| 1,804,516 | |
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|
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|
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| |
Cumulative preferred stock |
| 43,000 |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 43,000 | |||
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| |
Long-term debt: |
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|
|
| |||
| Long-term debt |
| 1,047,049 |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 1,047,049 | ||
| Transition property securitization |
| 354,675 |
|
| 282,543 |
|
| - |
|
| - |
|
| - |
|
| 637,218 | ||
|
| Total long-term debt |
| 1,401,724 |
|
| 282,543 |
|
| - |
|
| - |
|
| - |
|
| 1,684,267 | |
| Total capitalization |
| 2,703,981 |
|
| 651,028 |
|
| 112,444 |
|
| 64,330 |
|
| - |
|
| 3,531,783 | ||
|
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| |
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Transition property securitization |
| 85,080 |
|
| 41,618 |
|
| - |
|
| - |
|
| - |
|
| 126,698 | ||
| Long-term debt |
| 1,100 |
|
| 79,173 |
|
| 20,000 |
|
| - |
|
| - |
|
| 100,273 | ||
| Notes payable |
| 71,500 |
|
| 5,500 |
|
| 16,800 |
|
| - |
|
| - |
|
| 93,800 | ||
| Accounts payable |
| 141,676 |
|
| 32,483 |
|
| 12,295 |
|
| - |
|
| - |
|
| 186,454 | ||
| Payable to affiliates |
| 10,009 |
|
| 45,325 |
|
| 13,300 |
|
| 606 |
|
| (69,240 | ) |
| - | ||
| Income taxes |
| 153,628 |
|
| 9,544 |
|
| 14,087 |
|
| 1,795 |
|
| - |
|
| 179,054 | ||
| Other |
| 181,119 |
|
| 49,449 |
|
| 26,318 |
|
| 752 |
|
| (872 | ) |
| 256,766 | ||
|
| Total current liabilities |
| 644,112 |
|
| 263,092 |
|
| 102,800 |
|
| 3,153 |
|
| (70,112 | ) |
| 943,045 | |
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| |
Deferred credits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Accumulated deferred income taxes and ITC | 915,532 |
|
| 260,010 |
|
| 50,062 |
|
| (55 | ) |
| - |
|
| 1,225,549 | |||
| Power contracts |
| 408,828 |
|
| 147,779 |
|
| 33,981 |
|
| - |
|
| - |
|
| 590,588 | ||
| Payable to affiliates |
| 127,441 |
|
| - |
|
| - |
|
| - |
|
| (67,231 | ) |
| 60,210 | ||
| Other |
| 200,100 |
|
| 85,516 |
|
| 17,183 |
|
| 6,104 |
|
| (6,104 | ) |
| 302,799 | ||
|
| Total deferred credits |
| 1,651,901 |
|
| 493,305 |
|
| 101,226 |
|
| 6,049 |
|
| (73,335 | ) |
| 2,179,146 | |
Commitments and contingencies |
|
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|
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|
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|
|
|
|
| |
| Total capitalization and liabilities | $ | 4,999,994 |
| $ | 1,407,425 |
| $ | 316,470 |
| $ | 73,532 |
| $ | (143,447 | ) | $ | 6,653,974 |
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
3
NSTAR Electric Company | |||||||||||||||||||
Unaudited Pro Forma Condensed Consolidated Balance Sheet | |||||||||||||||||||
December 31, 2005 | |||||||||||||||||||
(in thousands) | NSTAR Electric Co. (f.k.a. Boston Edison) |
| ComElectric |
| Cambridge Electric |
| Canal Electric |
| Pro Forma Adjustments (Note 2) |
| NSTAR Electric Pro Forma | ||||||||
Assets |
|
|
|
|
| ||||||||||||||
|
|
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|
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|
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|
Net utility plant | $ | 2,536,284 |
| $ | 574,337 |
| $ | 155,491 |
| $ | 7,008 |
| $ | (7,008 | ) | $ | 3,266,112 | ||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity investments and other |
| 14,035 |
|
| 2,082 |
|
| 3,305 |
|
| 1,300 |
|
| - |
|
| 20,722 | ||
|
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|
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|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| Cash and cash equivalents |
| 10,148 |
|
| 2,173 |
|
| 478 |
|
| 21 |
|
| - |
|
| 12,820 | |
| Accounts receivable and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| accrued unbilled revenues |
| 191,582 |
|
| 54,526 |
|
| 17,171 |
|
| 62,518 |
|
| (64,098 | ) |
| 261,699 | |
| Regulatory assets |
| 260,943 |
|
| 107,334 |
|
| 35,552 |
|
| - |
|
| - |
|
| 403,829 | |
| Inventory |
| 17,246 |
|
| 7,483 |
|
| 1,265 |
|
| - |
|
| - |
|
| 25,994 | |
| Income taxes |
| 5,254 |
|
| 31,409 |
|
| - |
|
| - |
|
| - |
|
| 36,663 | |
| Other current assets |
| 2,956 |
|
| 88 |
|
| 4,089 |
|
| 357 |
|
| (74 | ) |
| 7,416 | |
|
| Total current assets |
| 488,129 |
|
| 203,013 |
|
| 58,555 |
|
| 62,896 |
|
| (64,172 | ) |
| 748,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred debits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| Regulatory assets |
| 1,494,148 |
|
| 581,260 |
|
| 86,984 |
|
| - |
|
| - |
|
| 2,162,392 | |
| Prepaid pension |
| 346,889 |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 346,889 | |
| Other |
| 12,136 |
|
| 77,483 |
|
| 12,467 |
|
| - |
|
| (67,231 | ) |
| 34,855 | |
|
| Total deferred debits |
| 1,853,173 |
|
| 658,743 |
|
| 99,451 |
|
| - |
|
| (67,231 | ) |
| 2,544,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets | $ | 4,891,621 |
| $ | 1,438,175 |
| $ | 316,802 |
| $ | 71,204 |
| $ | (138,411 | ) | $ | 6,579,391 |
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
4
NSTAR Electric Company | ||||||||||||||||||||
Unaudited Pro Forma Condensed Consolidated Balance Sheet | ||||||||||||||||||||
December 31, 2005 | ||||||||||||||||||||
(in thousands) | NSTAR Electric Co. (f.k.a. Boston Edison) |
| ComElectric |
| Cambridge Electric |
| Canal Electric |
| Pro Forma Adjustments (Note 2) |
| NSTAR Electric Pro Forma | |||||||||
Capitalization and Liabilities |
|
|
|
|
| |||||||||||||||
Common equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Common stock | $ | - |
| $ | 51,099 |
| $ | 8,665 |
| $ | 8,863 |
| $ | (68,627 | ) | $ | - | ||
| Premium on common stock |
| 597,843 |
|
| 212,310 |
|
| 54,132 |
|
| 44,701 |
|
| 68,627 |
|
| 977,613 | ||
| Retained earnings |
| 603,449 |
|
| 92,216 |
|
| 26,966 |
|
| 9,317 |
|
| - |
|
| 731,948 | ||
|
| Total common equity |
| 1,201,292 |
|
| 355,625 |
|
| 89,763 |
|
| 62,881 |
|
| - |
|
| 1,709,561 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Cumulative preferred stock |
| 43,000 |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 43,000 | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Long-term debt: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Long-term debt |
| 850,378 |
|
| 77,744 |
|
| 5,000 |
|
| - |
|
| - |
|
| 933,122 | ||
| Transition property securitization |
| 455,424 |
|
| 332,542 |
|
| - |
|
| - |
|
| - |
|
| 787,966 | ||
|
| Total long-term debt |
| 1,305,802 |
|
| 410,286 |
|
| 5,000 |
|
| - |
|
| - |
|
| 1,721,088 | |
| Total capitalization |
| 2,550,094 |
|
| 765,911 |
|
| 94,763 |
|
| 62,881 |
|
| - |
|
| 3,473,649 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Transition property securitization |
| 62,692 |
|
| 31,990 |
|
| - |
|
| - |
|
| - |
|
| 94,682 | ||
| Long-term debt |
| 688 |
|
| 2,481 |
|
| 20,000 |
|
| - |
|
| - |
|
| 23,169 | ||
| Notes payable |
| 197,000 |
|
| - |
|
| 35,900 |
|
| - |
|
| - |
|
| 232,900 | ||
| Accounts payable |
| 159,786 |
|
| 28,384 |
|
| 13,178 |
|
| - |
|
| - |
|
| 201,348 | ||
| Payable to affiliates |
| 21,664 |
|
| 47,559 |
|
| 14,900 |
|
| 191 |
|
| (64,099 | ) |
| 20,215 | ||
| Income taxes |
| 16,813 |
|
| - |
|
| - |
|
| 1,073 |
|
| - |
|
| 17,886 | ||
| Other |
| 177,853 |
|
| 48,410 |
|
| 23,886 |
|
| 625 |
|
| (590 | ) |
| 250,184 | ||
|
| Total current liabilities |
| 636,496 |
|
| 158,824 |
|
| 107,864 |
|
| 1,889 |
|
| (64,689 | ) |
| 840,384 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Deferred credits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Accumulated deferred income taxes and ITC | 908,450 |
|
| 267,914 |
|
| 52,510 |
|
| (49 | ) |
| - |
|
| 1,228,825 | |||
| Power contracts |
| 475,797 |
|
| 161,783 |
|
| 43,672 |
|
| - |
|
| - |
|
| 681,252 | ||
| Payable to affiliates |
| 127,441 |
|
| - |
|
| - |
|
| - |
|
| (67,231 | ) |
| 60,210 | ||
| Other |
| 193,343 |
|
| 83,743 |
|
| 17,993 |
|
| 6,483 |
|
| (6,491 | ) |
| 295,071 | ||
|
| Total deferred credits |
| 1,705,031 |
|
| 513,440 |
|
| 114,175 |
|
| 6,434 |
|
| (73,722 | ) |
| 2,265,358 | |
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Total capitalization and liabilities | $ | 4,891,621 |
| $ | 1,438,175 |
| $ | 316,802 |
| $ | 71,204 |
| $ | (138,411 | ) | $ | 6,579,391 |
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
5
NSTAR Electric Company | |||||||||||||||||||||
Unaudited Pro Forma Condensed Consolidated Statement of Income | |||||||||||||||||||||
Nine Months Ended September 30, 2006 | |||||||||||||||||||||
| NSTAR Electric Co. (f.k.a. Boston Edison) |
| ComElectric |
| Cambridge Electric |
| Canal Electric |
| Pro Forma Adjustments (Note 2) |
| NSTAR Electric Pro Forma |
| |||||||||
(in thousands) |
|
|
|
|
|
| |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating revenues | $ | 1,757,060 |
| $ | 390,569 |
| $ | 150,195 |
| $ | 1,836 |
| $ | (6,582 | ) | $ | 2,293,078 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Purchased power |
| 1,051,547 |
|
| 191,077 |
|
| 113,280 |
|
| - |
|
| (5,266 | ) |
| 1,350,638 |
| ||
| Operations and maintenance |
| 170,737 |
|
| 56,067 |
|
| 9,937 |
|
| 1,843 |
|
| (1,316 | ) |
| 237,268 |
| ||
| Depreciation and amortization |
| 170,463 |
|
| 65,741 |
|
| 5,960 |
|
| - |
|
| - |
|
| 242,164 |
| ||
| Demand side management and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| renewable energy programs |
| 35,472 |
|
| 9,810 |
|
| 4,004 |
|
| - |
|
| - |
|
| 49,286 |
| ||
| Property and other taxes |
| 59,522 |
|
| 5,984 |
|
| 1,931 |
|
| 14 |
|
| - |
|
| 67,451 |
| ||
| Income taxes |
| 79,045 |
|
| 17,183 |
|
| 4,816 |
|
| 860 |
|
| - |
|
| 101,904 |
| ||
| Total operating expenses |
| 1,566,786 |
|
| 345,862 |
|
| 139,928 |
|
| 2,717 |
|
| (6,582 | ) |
| 2,048,711 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Operating income (loss) |
| 190,274 |
|
| 44,707 |
|
| 10,267 |
|
| (881 | ) |
| - |
|
| 244,367 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Other income (deductions), net |
| 4,792 |
|
| 832 |
|
| (163 | ) |
| 2,589 |
|
| (809 | ) |
| 7,241 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Long-term debt |
| 43,966 |
|
| 5,888 |
|
| 1,453 |
|
| - |
|
| - |
|
| 51,307 |
| ||
| Transition property securitization |
| 21,972 |
|
| 11,119 |
|
| - |
|
| - |
|
| - |
|
| 33,091 |
| ||
| Short-term and other |
| 5,353 |
|
| (105 | ) |
| 1,202 |
|
| 259 |
|
| (809 | ) |
| 5,900 |
| ||
| Allowance for borrowed funds used |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| during construction (AFUDC) |
| (4,660 | ) |
| (223 | ) |
| (232 | ) |
| - |
|
| - |
|
| (5,115 | ) | ||
| Total interest charges |
| 66,631 |
|
| 16,679 |
|
| 2,423 |
|
| 259 |
|
| (809 | ) |
| 85,183 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net income | $ | 128,435 |
| $ | 28,860 |
| $ | 7,681 |
| $ | 1,449 |
| $ | - |
| $ | 166,425 |
|
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
6
NSTAR Electric Company | |||||||||||||||||||||
Unaudited Pro Forma Condensed Consolidated Statement of Income | |||||||||||||||||||||
Nine Months Ended September 30, 2005 | |||||||||||||||||||||
| NSTAR Electric Co. (f.k.a. Boston Edison) |
| ComElectric |
| Cambridge Electric |
| Canal Electric |
| Pro Forma Adjustments (Note 2) |
| NSTAR Electric Pro Forma |
| |||||||||
(in thousands) |
|
|
|
|
|
| |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating revenues | $ | 1,480,976 |
| $ | 387,356 |
| $ | 117,020 |
| $ | 1,806 |
| $ | (6,352 | ) | $ | 1,980,806 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Purchased power |
| 803,883 |
|
| 181,200 |
|
| 83,612 |
|
| - |
|
| (5,268 | ) |
| 1,063,427 |
| ||
| Operations and maintenance |
| 183,472 |
|
| 58,775 |
|
| 10,947 |
|
| 1,807 |
|
| (1,084 | ) |
| 253,917 |
| ||
| Depreciation and amortization |
| 155,848 |
|
| 55,249 |
|
| 5,270 |
|
| - |
|
| - |
|
| 216,367 |
| ||
| Demand side management and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| renewable energy programs |
| 35,440 |
|
| 10,010 |
|
| 3,932 |
|
| - |
|
| - |
|
| 49,382 |
| ||
| Property and other taxes |
| 58,927 |
|
| 5,866 |
|
| 1,712 |
|
| - |
|
| - |
|
| 66,505 |
| ||
| Income taxes |
| 73,058 |
|
| 23,721 |
|
| 3,907 |
|
| (393 | ) |
| - |
|
| 100,293 |
| ||
| Total operating expenses |
| 1,310,628 |
|
| 334,821 |
|
| 109,380 |
|
| 1,414 |
|
| (6,352 | ) |
| 1,749,891 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Operating income |
| 170,348 |
|
| 52,535 |
|
| 7,640 |
|
| 392 |
|
| - |
|
| 230,915 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Other income, net |
| 2,346 |
|
| 752 |
|
| 45 |
|
| 1,651 |
|
| (951 | ) |
| 3,843 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Long-term debt |
| 40,520 |
|
| 6,982 |
|
| 1,488 |
|
| - |
|
| - |
|
| 48,990 |
| ||
| Transition property securitization |
| 24,416 |
|
| 9,446 |
|
| - |
|
| - |
|
| - |
|
| 33,862 |
| ||
| Short-term and other |
| 931 |
|
| 457 |
|
| 698 |
|
| - |
|
| (951 | ) |
| 1,135 |
| ||
| Allowance for borrowed funds used |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| during construction (AFUDC) |
| (1,821 | ) |
| (182 | ) |
| (346 | ) |
| - |
|
| - |
|
| (2,349 | ) | ||
| Total interest charges |
| 64,046 |
|
| 16,703 |
|
| 1,840 |
|
| - |
|
| (951 | ) |
| 81,638 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net income | $ | 108,648 |
| $ | 36,584 |
| $ | 5,845 |
| $ | 2,043 |
| $ | - |
| $ | 153,120 |
|
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
7
NSTAR Electric Company | |||||||||||||||||||||
Unaudited Pro Forma Condensed Consolidated Statement of Income | |||||||||||||||||||||
Year Ended December 31, 2005 | |||||||||||||||||||||
| NSTAR Electric Co. (f.k.a. Boston Edison) |
| ComElectric |
| Cambridge Electric |
| Canal Electric |
| Pro Forma Adjustments (Note 2) |
| NSTAR Electric Pro Forma |
| |||||||||
(in thousands) |
|
|
|
|
|
| |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating revenues | $ | 1,913,053 |
| $ | 496,244 |
| $ | 152,460 |
| $ | 2,472 |
| $ | (8,476 | ) | $ | 2,555,753 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Purchased power |
| 1,037,911 |
|
| 229,878 |
|
| 110,142 |
|
| - |
|
| (7,086 | ) |
| 1,370,845 |
| ||
| Operations and maintenance |
| 240,317 |
|
| 81,890 |
|
| 14,891 |
|
| 2,473 |
|
| (1,390 | ) |
| 338,181 |
| ||
| Depreciation and amortization |
| 214,740 |
|
| 77,727 |
|
| 7,274 |
|
| - |
|
| - |
|
| 299,741 |
| ||
| Demand side management and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| renewable energy programs |
| 46,431 |
|
| 13,039 |
|
| 5,146 |
|
| - |
|
| - |
|
| 64,616 |
| ||
| Property and other taxes |
| 76,729 |
|
| 7,683 |
|
| 2,285 |
|
| 24 |
|
| - |
|
| 86,721 |
| ||
| Income taxes |
| 83,578 |
|
| 24,165 |
|
| 4,212 |
|
| (115 | ) |
| - |
|
| 111,840 |
| ||
| Total operating expenses |
| 1,699,706 |
|
| 434,382 |
|
| 143,950 |
|
| 2,382 |
|
| (8,476 | ) |
| 2,271,944 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Operating income |
| 213,347 |
|
| 61,862 |
|
| 8,510 |
|
| 90 |
|
| - |
|
| 283,809 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Other income, net |
| 3,097 |
|
| 1,016 |
|
| 28 |
|
| 2,348 |
|
| (1,213 | ) |
| 5,276 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Long-term debt |
| 53,291 |
|
| 8,992 |
|
| 1,983 |
|
| - |
|
| - |
|
| 64,266 |
| ||
| Transition property securitization |
| 32,338 |
|
| 13,356 |
|
| - |
|
| - |
|
| - |
|
| 45,694 |
| ||
| Short-term and other |
| 2,132 |
|
| 1,634 |
|
| 433 |
|
| (62 | ) |
| (1,213 | ) |
| 2,924 |
| ||
| Allowance for borrowed funds used |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| during construction (AFUDC) |
| (2,565 | ) |
| (276 | ) |
| (549 | ) |
| - |
|
| - |
|
| (3,390 | ) | ||
| Total interest charges |
| 85,196 |
|
| 23,706 |
|
| 1,867 |
|
| (62 | ) |
| (1,213 | ) |
| 109,494 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net income | $ | 131,248 |
| $ | 39,172 |
| $ | 6,671 |
| $ | 2,500 |
| $ | - |
| $ | 179,591 |
|
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
8
NSTAR Electric Company | |||||||||||||||||||||
Unaudited Pro Forma Condensed Consolidated Statement of Income | |||||||||||||||||||||
Year Ended December 31, 2004 | |||||||||||||||||||||
| NSTAR Electric Co. (f.k.a. Boston Edison) |
| ComElectric |
| Cambridge Electric |
| Canal Electric |
| Pro Forma Adjustments (Note 2) |
| NSTAR Electric Pro Forma |
| |||||||||
(in thousands) |
|
|
|
|
|
| |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating revenues | $ | 1,705,793 |
| $ | 510,177 |
| $ | 151,373 |
| $ | 7,465 |
| $ | (13,505 | ) | $ | 2,361,303 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Purchased power |
| 882,755 |
|
| 322,696 |
|
| 109,179 |
|
| - |
|
| (12,161 | ) |
| 1,302,469 |
| ||
| Operations and maintenance |
| 221,439 |
|
| 77,848 |
|
| 12,679 |
|
| 2,514 |
|
| (1,344 | ) |
| 313,136 |
| ||
| Depreciation and amortization |
| 175,990 |
|
| 29,866 |
|
| 6,269 |
|
| - |
|
| - |
|
| 212,125 |
| ||
| Demand side management and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| renewable energy programs |
| 45,212 |
|
| 12,602 |
|
| 4,918 |
|
| - |
|
| - |
|
| 62,732 |
| ||
| Property and other taxes |
| 76,787 |
|
| 8,137 |
|
| 2,102 |
|
| - |
|
| - |
|
| 87,026 |
| ||
| Income taxes |
| 88,531 |
|
| 20,124 |
|
| 5,615 |
|
| (1,109 | ) |
| - |
|
| 113,161 |
| ||
| Total operating expenses |
| 1,490,714 |
|
| 471,273 |
|
| 140,762 |
|
| 1,405 |
|
| (13,505 | ) |
| 2,090,649 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Operating income |
| 215,079 |
|
| 38,904 |
|
| 10,611 |
|
| 6,060 |
|
| - |
|
| 270,654 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Other income, net |
| 2,271 |
|
| 530 |
|
| 363 |
|
| 486 |
|
| (462 | ) |
| 3,188 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Long-term debt |
| 50,123 |
|
| 10,912 |
|
| 1,985 |
|
| - |
|
| - |
|
| 63,020 |
| ||
| Transition property securitization |
| 28,150 |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 28,150 |
| ||
| Short-term and other |
| 5,565 |
|
| (2,813 | ) |
| 151 |
|
| - |
|
| (462 | ) |
| 2,441 |
| ||
| Allowance for borrowed funds used |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| during construction (AFUDC) |
| (618 | ) |
| (213 | ) |
| (104 | ) |
| - |
|
| - |
|
| (935 | ) | ||
| Total interest charges |
| 83,220 |
|
| 7,886 |
|
| 2,032 |
|
| - |
|
| (462 | ) |
| 92,676 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net income | $ | 134,130 |
| $ | 31,548 |
| $ | 8,942 |
| $ | 6,546 |
| $ | - |
| $ | 181,166 |
|
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
9
NSTAR Electric Company | |||||||||||||||||||||
Unaudited Pro Forma Condensed Consolidated Statement of Income | |||||||||||||||||||||
Year Ended December 31, 2003 | |||||||||||||||||||||
| NSTAR Electric Co. (f.k.a. Boston Edison) |
| ComElectric |
| Cambridge Electric |
| Canal Electric |
| Pro Forma Adjustments (Note 2) |
| NSTAR Electric Pro Forma |
| |||||||||
(in thousands) |
|
|
|
|
|
| |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating revenues | $ | 1,699,184 |
| $ | 492,854 |
| $ | 158,906 |
| $ | 2,920 |
| $ | (25,665 | ) | $ | 2,328,199 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Purchased power |
| 874,441 |
|
| 304,383 |
|
| 110,993 |
|
| - |
|
| (24,295 | ) |
| 1,265,522 |
| ||
| Operations and maintenance |
| 224,869 |
|
| 82,580 |
|
| 12,497 |
|
| 3,208 |
|
| (1,370 | ) |
| 321,784 |
| ||
| Depreciation and amortization |
| 170,924 |
|
| 26,392 |
|
| 5,583 |
|
| - |
|
| - |
|
| 202,899 |
| ||
| Demand side management and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| renewable energy programs |
| 45,512 |
|
| 12,522 |
|
| 4,334 |
|
| - |
|
| - |
|
| 62,368 |
| ||
| Property and other taxes |
| 72,174 |
|
| 7,787 |
|
| 1,966 |
|
| - |
|
| - |
|
| 81,927 |
| ||
| Income taxes |
| 89,957 |
|
| 21,197 |
|
| 8,513 |
|
| 344 |
|
| - |
|
| 120,011 |
| ||
| Total operating expenses |
| 1,477,877 |
|
| 454,861 |
|
| 143,886 |
|
| 3,552 |
|
| (25,665 | ) |
| 2,054,511 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Operating income (loss) |
| 221,307 |
|
| 37,993 |
|
| 15,020 |
|
| (632 | ) |
| - |
|
| 273,688 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Other income (deductions), net |
| 1,573 |
|
| 227 |
|
| (675 | ) |
| 1,293 |
|
| (440 | ) |
| 1,978 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Long-term debt |
| 52,684 |
|
| 9,978 |
|
| 1,984 |
|
| - |
|
| - |
|
| 64,646 |
| ||
| Transition property securitization |
| 32,715 |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 32,715 |
| ||
| Short-term and other |
| 7,775 |
|
| (2,612 | ) |
| (30 | ) |
| (101 | ) |
| (440 | ) |
| 4,592 |
| ||
| Allowance for borrowed funds used |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| during construction (AFUDC) |
| (1,212 | ) |
| (262 | ) |
| (75 | ) |
| - |
|
| - |
|
| (1,549 | ) | ||
| Total interest charges |
| 91,962 |
|
| 7,104 |
|
| 1,879 |
|
| (101 | ) |
| (440 | ) |
| 100,404 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net income | $ | 130,918 |
| $ | 31,116 |
| $ | 12,466 |
| $ | 762 |
| $ | - |
| $ | 175,262 |
|
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
10
Notes to Unaudited NSTAR Electric Company Pro Forma Condensed Consolidated Financial Statements
Note 1. Basis of Presentation
Effective January 1, 2007, NSTAR, the parent company of Boston Edison, completed the transfer of the assets, (consisting primarily of the utility distribution facilities, properties and other assets, and franchise rights), and liabilities, of its wholly-owned electric subsidiaries, ComElectric, Cambridge Electric and Canal Electric to Boston Edison. The transfer of net assets was structured as a merger of ComElectric, Cambridge Electric and Canal Electric into Boston Edison. In connection with the merger, Boston Edison issued an aggregate of 25 shares of its Common Shares, par value of $1.00 per share, to NSTAR in exchange for the net assets of acquired companies. The exchange rate was determined and allocated based on the percentage of common equity of ComElectric, Cambridge Electric and Canal Electric. The transfer of net assets was made pursuant to NSTAR's Rate Settlement Agreement of December 30, 2005 and was approved by the MDTE and the FE RC. In connection with the transaction, Boston Edison changed its corporate name to NSTAR Electric Company, also effective January 1, 2007.
The historical financial information is derived from historical consolidated financial statements of the individual entities. The pro forma adjustments have been prepared as if the merger was completed on December 31, 2005 for the balance sheet and on January 1, 2003 for the statements of income. Since this is a transaction between entities under common control and ownership, the pro forma financial statements are combined on an "as if" pooling basis. Accordingly, the historic cost of the acquired assets and liabilities are carried forward.
Note 2. Pro Forma Adjustments
On the balance sheets, the pro forma adjustments reflect the elimination of intercompany amounts due to and from these affiliates and include adjustments to effect the merger. The pro forma adjustments include a reclassification of common stock of the acquired entities to Premium on common stock. On the statements of income, the pro forma adjustments reflect the elimination of intercompany transactions between the entities.
11