Exhibit 99.2
NORTHEAST UTILITIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| September 30, 2008 | December 31, 2007 | |||||
| (Thousands of Dollars) | ||||||
ASSETS | ||||||
Current Assets: | ||||||
Cash and cash equivalents | $ | 82,818 | $ | 15,104 | ||
Investments in securitizable assets | — | 308,182 | ||||
Receivables, less provision for uncollectible accounts of $44,423 in 2008 and $25,529 in 2007 | 623,834 | 401,283 | ||||
Unbilled revenues | 193,685 | 101,860 | ||||
Taxes receivable | 1,102 | 13,850 | ||||
Fuel, materials and supplies | 270,375 | 210,850 | ||||
Marketable securities - current | 80,623 | 70,816 | ||||
Derivative assets - current | 44,054 | 105,517 | ||||
Prepayments and other | 77,756 | 58,794 | ||||
| 1,374,247 | 1,286,256 | |||||
Property, Plant and Equipment: | ||||||
Electric utility | 8,378,452 | 7,594,606 | ||||
Gas utility | 1,011,311 | 977,290 | ||||
Other | 288,890 | 310,535 | ||||
| 9,678,653 | 8,882,431 | |||||
Less: Accumulated depreciation: $2,591,645 for electric and gas utility and $158,751 for other in 2008; $2,483,570 for electric and gas utility and $178,193 for other in 2007 | 2,750,396 | 2,661,763 | ||||
| 6,928,257 | 6,220,668 | |||||
Construction work in progress | 1,012,770 | 1,009,277 | ||||
| 7,941,027 | 7,229,945 | |||||
Deferred Debits and Other Assets: | ||||||
Regulatory assets | 2,372,197 | 2,057,083 | ||||
Goodwill | 287,591 | 287,591 | ||||
Prepaid pension | 222,484 | 202,512 | ||||
Marketable securities - long-term | 35,020 | 53,281 | ||||
Derivative assets - long-term | 266,346 | 298,001 | ||||
Other | 164,821 | 167,153 | ||||
| 3,348,459 | 3,065,621 | |||||
Total Assets | $ | 12,663,733 | $ | 11,581,822 | ||
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)
| September 30, 2008 | December 31, 2007 | |||||||
| (Thousands of Dollars) | ||||||||
LIABILITIES AND CAPITALIZATION | ||||||||
Current Liabilities: | ||||||||
Notes payable to banks | $ | 442,187 | $ | 79,000 | ||||
Long-term debt - current portion | 116,286 | 154,286 | ||||||
Accounts payable | 463,966 | 598,546 | ||||||
Accrued interest | 77,062 | 56,592 | ||||||
Derivative liabilities - current | 64,175 | 71,601 | ||||||
Other | 172,226 | 246,125 | ||||||
| 1,335,902 | 1,206,150 | |||||||
Rate Reduction Bonds | 743,345 | 917,436 | ||||||
Deferred Credits and Other Liabilities: | ||||||||
Accumulated deferred income taxes | 1,175,988 | 1,067,490 | ||||||
Accumulated deferred investment tax credits | 26,239 | 28,845 | ||||||
Deferred contractual obligations | 197,304 | 222,908 | ||||||
Regulatory liabilities | 645,235 | 851,780 | ||||||
Derivative liabilities - long-term | 785,908 | 208,461 | ||||||
Accrued postretirement benefits | 162,910 | 181,507 | ||||||
Other | 427,289 | 383,611 | ||||||
| 3,420,873 | 2,944,602 | |||||||
Capitalization: | ||||||||
Long-Term Debt | 4,031,432 | 3,483,599 | ||||||
Preferred Stock of Subsidiary - Non-Redeemable | 116,200 | 116,200 | ||||||
Common Shareholders’ Equity: | ||||||||
Common shares, $5 par value - authorized 225,000,000 shares; 176,179,925 shares issued and 155,661,854 shares outstanding in 2008 and 175,924,694 shares issued and 155,079,770 shares outstanding in 2007 | 880,899 | 879,623 | ||||||
Capital surplus, paid in | 1,472,550 | 1,465,946 | ||||||
Deferred contribution plan - employee stock ownership plan | (18,726 | ) | (26,352 | ) | ||||
Retained earnings | 1,039,984 | 946,792 | ||||||
Accumulated other comprehensive income | 2,877 | 9,359 | ||||||
Treasury stock, 19,708,136 shares in 2008 and 19,705,545 shares in 2007 | (361,603 | ) | (361,533 | ) | ||||
Common Shareholders’ Equity | 3,015,981 | 2,913,835 | ||||||
Total Capitalization | 7,163,613 | 6,513,634 | ||||||
Total Liabilities and Capitalization | $ | 12,663,733 | $ | 11,581,822 | ||||
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 September 30, | Nine Months Ended September 30, | ||||||||||||
| 2008 | 2007 | 2008 | 2007 | ||||||||||
| (Thousands of Dollars, except share information) | |||||||||||||
Operating Revenues | $ | 1,506,897 | $ | 1,450,977 | $ | 4,352,209 | $ | 4,546,267 | |||||
Operating Expenses: | |||||||||||||
Operation - | |||||||||||||
Fuel, purchased and net interchange power | 801,050 | 881,234 | 2,286,066 | 2,756,522 | |||||||||
Other | 232,222 | 195,112 | 755,306 | 678,224 | |||||||||
Maintenance | 71,287 | 53,854 | 198,892 | 159,681 | |||||||||
Depreciation | 69,717 | 64,522 | 205,792 | 191,393 | |||||||||
Amortization of regulatory assets, net | 61,386 | 17,007 | 132,186 | 19,795 | |||||||||
Amortization of rate reduction bonds | 53,132 | 52,403 | 154,366 | 151,316 | |||||||||
Taxes other than income taxes | 69,026 | 63,485 | 200,133 | 193,435 | |||||||||
Total operating expenses | 1,357,820 | 1,327,617 | 3,932,741 | 4,150,366 | |||||||||
Operating Income | 149,077 | 123,360 | 419,468 | 395,901 | |||||||||
Interest Expense: | |||||||||||||
Interest on long-term debt | 53,111 | 41,706 | 142,333 | 118,153 | |||||||||
Interest on rate reduction bonds | 12,207 | 15,111 | 38,910 | 47,300 | |||||||||
Other interest | 5,579 | 4,949 | 18,355 | 15,172 | |||||||||
Interest expense, net | 70,897 | 61,766 | 199,598 | 180,625 | |||||||||
Other Income, Net | 17,682 | 10,734 | 41,610 | 36,676 | |||||||||
Income from Continuing Operations Before Income Tax Expense | 95,862 | 72,328 | 261,480 | 251,952 | |||||||||
Income Tax Expense | 21,783 | 20,756 | 68,381 | 75,182 | |||||||||
Income from Continuing Operations Before Preferred Dividends of Subsidiary | 74,079 | 51,572 | 193,099 | 176,770 | |||||||||
Preferred Dividends of Subsidiary | 1,390 | 1,390 | 4,169 | 4,169 | |||||||||
Income from Continuing Operations | 72,689 | 50,182 | 188,930 | 172,601 | |||||||||
Discontinued Operations: | |||||||||||||
Income from Discontinued Operations | — | 16 | — | 264 | |||||||||
(Losses)/Gains from Sale/Disposition of Discontinued Operations | — | (90 | ) | — | 1,927 | ||||||||
Income Tax (Benefit)/Expense | — | (16 | ) | — | 1,021 | ||||||||
(Loss)/Income from Discontinued Operations | — | (58 | ) | — | 1,170 | ||||||||
Net Income | $ | 72,689 | $ | 50,124 | $ | 188,930 | $ | 173,771 | |||||
Basic Earnings Per Common Share: | |||||||||||||
Income from Continuing Operations | $ | 0.47 | $ | 0.32 | $ | 1.22 | $ | 1.12 | |||||
Income from Discontinued Operations | — | — | — | — | |||||||||
Basic Earnings Per Common Share | $ | 0.47 | $ | 0.32 | $ | 1.22 | $ | 1.12 | |||||
Fully Diluted Earnings Per Common Share: | |||||||||||||
Income from Continuing Operations | $ | 0.47 | $ | 0.32 | $ | 1.21 | $ | 1.11 | |||||
Income from Discontinued Operations | — | — | — | 0.01 | |||||||||
Fully Diluted Earnings Per Common Share | $ | 0.47 | $ | 0.32 | $ | 1.21 | $ | 1.12 | |||||
Basic Common Shares Outstanding (weighted average) | 155,607,201 | 154,930,930 | 155,456,606 | 154,672,270 | |||||||||
Fully Diluted Common Shares Outstanding (weighted average) | 156,097,641 | 155,420,239 | 155,904,871 | 155,210,704 | |||||||||
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, | ||||||||
| 2008 | 2007 | |||||||
| (Thousands of Dollars) | ||||||||
Operating Activities: | ||||||||
Net income | $ | 188,930 | $ | 173,771 | ||||
Adjustments to reconcile to net cash flows provided by operating activities: | ||||||||
Bad debt expense | 21,341 | 19,983 | ||||||
Depreciation | 205,792 | 191,393 | ||||||
Deferred income taxes | 31,125 | (41,144 | ) | |||||
Pension expense, net of capitalized portion | 5,956 | 13,776 | ||||||
(Deferral)/amortization of recoverable energy costs | (5,898 | ) | 1,494 | |||||
Amortization of rate reduction bonds | 154,366 | 151,316 | ||||||
Amortization of regulatory assets, net | 132,186 | 19,795 | ||||||
Regulatory (refunds and underrecoveries)/overrecoveries | (97,888 | ) | 95,766 | |||||
Derivative assets and liabilities | (32,369 | ) | (31,641 | ) | ||||
Deferred contractual obligations | (25,604 | ) | (32,760 | ) | ||||
Other non-cash adjustments | (19,532 | ) | (2,561 | ) | ||||
Other sources of cash | 2,907 | — | ||||||
Other uses of cash | (28,315 | ) | (33,101 | ) | ||||
Changes in current assets and liabilities: | ||||||||
Receivables and unbilled revenues, net | (10,356 | ) | 43,511 | |||||
Fuel, materials and supplies | (59,554 | ) | (57,281 | ) | ||||
Investments in securitizable assets | (25,787 | ) | 18,137 | |||||
Other current assets | (26,189 | ) | (6,483 | ) | ||||
Accounts payable | (58,594 | ) | (91,473 | ) | ||||
Counterparty deposits and margin special deposits | 7,965 | 20,858 | ||||||
Taxes receivable/accrued | 64,425 | (350,529 | ) | |||||
Other current liabilities | (2,801 | ) | (34,676 | ) | ||||
Net cash flows provided by operating activities | 422,106 | 68,151 | ||||||
Investing Activities: | ||||||||
Investments in property and plant | (951,831 | ) | (750,231 | ) | ||||
Proceeds from sales of investment securities | 195,445 | 196,083 | ||||||
Purchases of investment securities | (197,453 | ) | (199,964 | ) | ||||
Rate reduction bond escrow and other deposits | 465 | 8,436 | ||||||
Other investing activities | 2,765 | 996 | ||||||
Net cash flows used in investing activities | (950,609 | ) | (744,680 | ) | ||||
Financing Activities: | ||||||||
Issuance of common shares | 5,002 | 8,988 | ||||||
Issuance of long-term debt | 660,000 | 655,000 | ||||||
Retirements of rate reduction bonds | (174,091 | ) | (161,926 | ) | ||||
Increase in short-term debt | 363,187 | — | ||||||
Retirements of long-term debt | (154,286 | ) | (4,877 | ) | ||||
Cash dividends on common shares | (95,824 | ) | (89,745 | ) | ||||
Other financing activities | (7,771 | ) | (5,169 | ) | ||||
Net cash flows provided by financing activities | 596,217 | 402,271 | ||||||
Net increase/(decrease) in cash and cash equivalents | 67,714 | (274,258 | ) | |||||
Cash and cash equivalents - beginning of period | 15,104 | 481,911 | ||||||
Cash and cash equivalents - end of period | $ | 82,818 | $ | 207,653 | ||||
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.