Eversource Energy (ES) 8-K Nu Reports on Third Quarter 2006 Results, Capital Expenditures, 2007 Earnings Guidance, Competitive Generation Sale

EEI Financial Conference

NOVEMBER 6, 2006

Energy /

Growth /

Leadership

Exhibit 99.3

2

Safe Harbor Provisions

This presentation contains statements concerning NU’s expectations, plans, objectives, future financial

performance and other statements that are not historical facts.

These statements are “forward-looking

statements”

within the meaning of the Private Securities Litigation Reform Act of 1995.  In some cases, a

listener can identify these forward-looking statements by words such as “estimate”, “expect”, “anticipate”,

“intend”, “plan”, “believe”, “forecast”, “should”, “could”, and similar expressions.  Forward-looking

statements involve risks and uncertainties that may cause actual

results or outcomes to differ materially

from those included in the forward-looking statements.  Factors that may cause actual results to differ

materially from those included in the forward-looking statements include, but are not limited to, actions by

state and federal regulatory bodies; competition and industry restructuring; changes in economic

conditions; changes in weather patterns; changes in laws, regulations or regulatory policy; expiration or

initiation of significant energy supply contracts; changes in levels of capital expenditures; developments in

legal or public policy doctrines; technological developments; volatility in electric and natural gas

commodity markets; effectiveness of our risk management policies

and procedures; changes in accounting

standards and financial reporting regulations; fluctuations in the value of electricity positions; the

methods, timing and results of the disposition of competitive businesses; actions of rating agencies;

terrorist attacks on domestic energy facilities; and other presently unknown or unforeseen factors. Other

risk factors are detailed from time to time in our reports to the Securities and Exchange Commission.  We

undertake no obligation to update the information contained in any forward-looking statements to reflect

developments or circumstances occurring after the statement is made.

3

Agenda

2006 results and guidance

Strategic transformation

2007 guidance

2007-2011 capital expenditures and rate base projections

Distribution, PSNH regulated generation businesses

Transmission business

4

2006 EPS Results and Guidance

$1.70

$0.00

$1.33

$0.37

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

Regulated/Distribution

Generation

Transmission

Parent

Total

Regulated/Parent

$0.70

$1.28

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

Q3

YTD

$1.23

$0.34

$1.57

Regulated/Parent Results*

Regulated/Parent Guidance*

*Results include third quarter $0.48/share benefit from CL&P private letter ruling

Consolidated 2006 earnings guidance unchanged

5

Strategic Progress –

Last Year’s Decision

Divest all competitive businesses

Focus on regulated utility infrastructure capital expenditure

programs.

Announced November 7, 2005

6

Strategic Progress -

Divestitures

Northeast Utilities

Electric

Distribution

Competitive

Regulated

Electric

Transmission

Regulated

Generation

Gas

Distribution

Retail

Sold 6/1/06

Wholesale

New England

Contracts

Divested

12/31/05

Services

5 of 6 Sold

Generation

Sold 11/1/06

We are nearly complete transforming ourselves into a 100% regulated utility

7

Strategic Progress:  Investing In Regulated Businesses

Transmission

Bethel-Norwalk 100% complete

Middletown-Norwalk 9% complete

Glenbrook Cables under

construction

Long Island Cable under

construction

Distribution/Generation

Northern Wood in final testing

Waterbury LNG 85% complete

$654

$766

$880

2004

2005

2006 Est.

Regulated Capital Expenditures

(in $ millions)

Status of Major Projects

8

Benefits Of Transformation

Simplified our business model and strategy

Reduced our business risk and improved financial flexibility

Capitalized on increasing valuation of generation

Enhanced our earnings visibility

Increased our focus on regulated infrastructure capital

investment to meet customers needs

Each reason provided a year ago has been validated

We have:

9

The Next Five Years

$1,217

$1,142

$890

$797

$896

2007

2008

2009

2010

2011

Projected Capital Expenditures

$890*

$926*

$773*

$778*

*November 2005 projections

10

Rate Base Composition

2005 Rate Base Composition 

2011E Rate Base Composition 

2005 Rate Base:  $3.3 billion

2011E Rate Base:  $7.9 billion

Rate Base: 

$605 million

(Actual 2005)

’06-’11 Capex: 

$2.9 billion

Rate Base: 

$2.25 billion

(Actual 2005)

’06-’11 Capex: 

$2.5 billion

Rate Base: 

$463 million

(Actual 2005)

’06-’11 Capex: 

$0.3 billion

Electricity

Transmission

Electricity

Distribution & Generation

Gas LDC

Transmission to comprise much larger share of total rate base

18%

14%

68%

Transmission

Gas

Dist. & Reg. Generation

38%

9%

53%

Transmission

Gas

Dist. & Reg. Generation

11

$1.30 -

$1.55/share in 2007

Compound annual EPS growth rate of 10-14% from year-end

2006

Dividend policy, earnings growth create attractive total

shareholder return

Guidance for 2007 and Beyond

12

NU’s Presence In New England

Largest transmission owning IOU in New England

Majority of the ISO identified transmission need is in the NU

franchise

National leader in transmission technology

One of the largest landowners in New England

Largest electric distribution utility in New England

NU will continue to provide leadership in developing region’s energy policy

13

Additional Opportunities Not In This Forecast

Transmission

Regulated generation

New technologies

14

Financial

15

Year-To-Date Results

$83.8

($344.1)

($239.9)

$150.4

$43.6

($73.7)

$123.6

($10.1)

$30.5

$3.3

($400.0)

($300.0)

($200.0)

($100.0)

$0.0

$100.0

$200.0

Distribution/

Regulated

Generation

Transmission

Parent

Competitive

Total

$76.4

2005

2006

$83.8

($344.1)

($239.9)

$150.4

$43.6

($73.7)

$123.6

($10.1)

$30.5

$3.3

($400.0)

($300.0)

($200.0)

($100.0)

$0.0

$100.0

$200.0

2005

16

Third Quarter Regulated Results

$16.9

$3.7

$26.9

$84.4

$5.8

$2.8

$87.7

$10.5

($4.2)

($5.3)

($10.0)

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$90.0

$100.0

CL&P

PSNH

WMECO

Yankee

Total

$9.2

$1.1

$15.2

$2.1

$0.9

$11.8

$1.5

$18.2

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0

$20.0

CL&P

PSNH

WMECO

Total

Regulated Distribution

And Generation

Transmission

Results higher due to transmission, lower CL&P tax expense

$10.4

$13.7

2005

2006

17

2006-2007 EPS Projections

Distribution/Regulated Generation

$0.75 -

$0.85

$0.80 -

$0.90

Transmission

$0.34 -

$0.37

$0.50 -

$0.60

Parent/Other Affiliates

Breakeven

$0.00 -

$0.05

Competitive

N/A

Breakeven

Total

$1.09 -

$1.22

$1.30 -

$1.55

*2006 results exclude $0.48 effect of CL&P Private Letter Ruling

and exclude competitive results

2006 EPS*

2007 EPS

18

2007 and 2008 Earnings Drivers

Distribution

Regulated

Generation

Transmission

Parent

Competitive

Business Drivers

•

Rate base growth

•

Electric and gas retail sales

up about 1%

•

Operating costs

Regulatory Drivers

•

WMECO rate settlement

•

PSNH, Yankee Gas rate

case outcomes

•

CL&P 1/1/07 $7 million rate

increase

•

CL&P rate case outcome

(2008 only)

•

Progress on major and

routine projects

•

Impact of last week’s

New England ROE

order

•

Management of

wholesale supply and

capacity purchase

contracts through exit

•

Interest from cash on

generation sale

offsetting interest costs

•

NU corporate service

companies

19

2007-2011:  Capital Expenditures and Depreciation

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Five-year 2007-2011 capital spending of $4.9 billion,

compared with last year’s 2006-2010 $4.3 billion plan

Distribution Capex From 11/05 Forecast

Transmission Capex From 11/05 Forecast

Distribution Capex From 11/06 Forecast

Transmission Capex From 11/06 Forecast

2006 Est.

2007 Est.

2010 Est.

2011 Est.

2008 Est.

2009 Est.

$880*

$779*

$875*

$1,199*

$1,124*

$880*

N/A

$864

$890

$926

$778

$773

*Excludes approximately $18 million per year at corporate service companies

20

Projected Combined Rate Base

$1,072

$1,776

$2,337

$2,531

$2,726

$2,995

$3,465

$3,979

$4,249

$4,474

$4,711

$4,909

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

2006 Est.

2007 Est.

2008 Est.

2009 Est.

2010 Est.

2011 Est.

Electric Transmission

Regulated Distribution and Generation

Target Utility Capitalization Structure = 45% equity, 55% debt

Recently FERC Authorized Transmission ROE = 11.4%-12.4%

Projected PUC Authorized Cost of Capital Distribution ROE = 9% -10%

$5,755

$7,005

$6,586

$7,437

Regulated

Rate Base

2006-2011

CAGR of 12%

$4,531

$7,904

Supports EPS CAGR of 10-14%

Projected

Distribution &

Generation

Rate Base

CAGR of 7%

Transmission

Rate Base

2006-2011

CAGR of 23%

21

Projected

Uses

Financing The Growth:  2007

Projected

Sources

•

Cash from generation sale:  $1 billion

•

Regulated company long-term debt

issuances:  $600-$700 million

•

Cash from operations:  $500-$600

million

•

Capital expenditures:  $1.2 billion

•

Taxes on generation sale:  $450-$500

million

•

Short-term debt reduction: $300-$400

million

•

Dividends:  $125 million

Cash from generation sale helps to comfortably fund requirements

22

Financing The Growth:  2007-2011

$2.5 Billion

Cash from

Operations

$3 Billion

New Issuances,

and Cash from

Generation Sale

$5.5 Billion

Projected Capital Expenditures

and Dividends

NU will meet its cash needs almost exclusively from

internal sources and debt financings

23

Capitalization at September 30, 2006 ($ millions)

NU’s leverage comfortably within its targets

1.9%

$2,957

$304

$320

$2,473

$116

Long-Term Debt

Common Equity

NGC Debt

Short-Term Debt

Preferred Stock

5.2%

47.9%

40.1%

4.9%

1.9%

24

Distribution and

Generation

25

Key Issues For Next Fourteen Months

Successful distribution rate cases

Addressing reliability challenges resulting from strong peak load

growth, aging equipment

Managing the business in a modest sales growth environment

Bringing major projects into commercial operation

2007 will be a pivotal year for distribution businesses

26

CL&P Rate Case

Distribution only

Transmission, federally mandated charges, supply costs tracked

through other charges

To be filed around 7/1/07

New rates to be implemented by 1/1/08

Need to improve ROE level

Distribution capital spending will be an important item

CL&P distribution earnings will lag until 2008 rate relief

27

Peak Load Growing Much Faster Than Overall Consumption

0.9

1.0

1.1

1.2

1.3

1.4

1.5

Residential Use Per Customer

Summer Peak

0.9

1.0

1.1

1.2

1.3

1.4

1.5

1.6

Residential Use Per Customer

Summer Peak

CL&P Residential Use Per Customer

and Summer Peak

Weather Normalized

PSNH Residential Use Per Customer

and Summer Peak

Weather Normalized

Residential customer growth remains steady, at roughly the rate of housing growth

Residential use per customer has flattened in response to price induced conservation

Growth in peak demand outpaces growth in use per customers, as comfort during extreme weather

appears to outweigh cost

Load factors continue to fall as peak loads rise

28

WMECO Rate Case

Filed joint settlement with AG and other parties on October 19

$1 million distribution increase on 1/1/07; $3 million distribution

increase on 1/1/08

New trackers for pension, other post-retirement benefits, and

certain uncollectibles and capital investment

Annual transmission tracker already in place

9-10 percent ROE achievable

WMECO rate settlement a fair resolution

29

PSNH Rate Case

Filed in May 2006 for $49 million annualized permanent rate

increase

Interim $24.5 million temporary rate increase effective 7/1/06

Overall bill declined 15 percent due to lower stranded cost recovery,

and energy service charges

If fully litigated, final decision retroactive to 7/1/06

Settlement discussions in late 2006/early 2007

Hearings will commence in March if settlement not reached

Transmission tracker sought

Increased transmission costs represent $11 million of requested

increase

PSNH distribution request modest compared with recent overall rate reduction

30

Average Electric Rates

Other includes C&LM, CTA, Stranded Costs, Consumption Tax, SBC, DSM, Transition and Renewables.

Average Rates as of 8/1/06 for CL&P, 10/1/2006 for WMECO and 7/1/06 for PSNH

PSNH rates now lowest in New England

Total = 16.11

Total = 14.49

Total = 13.27

1.34

1.91

0.72

0.48

2.75

2.90

2.70

9.47

10.36

8.18

1.83

0.80

0.43

0

2

4

6

8

10

12

14

16

18

CL&P

WMECO

PSNH

Other

Transmission

Distribution

Energy

FMCC

31

Yankee Rate Case

To be filed around 1/1/07 and effective around 7/1/07

Reflecting LNG facility in base rates key item

Annual cost likely to be offset by lower commodity, pipeline capacity

charges

Additional rate relief needed to improve Yankee returns, account

for sales decline

Capital expenditures will decline sharply after LNG completed

Yankee financial performance expected to improve beginning with third quarter 2007

32

Major Projects

Yankee Gas’s 1.2 Bcf liquid natural gas

production facility in Waterbury, CT

$108 million cost

About 85 percent complete

Scheduled to be in service for 2007-

2008 heating season

Will enhance reliability, help insulate

customers from price volatility

Conversion of PSNH’s 50 MW Schiller

unit in Portsmouth, NH from coal to wood

$75 million cost

In final testing

Commercial operation by January

Enhances fuel diversity, reduces sulfur,

NOx, mercury emissions

33

Future Regulated Generation Opportunities

Under Way:

•

Legislation to install scrubber at Merrimack

approved in spring 2006

•

Projected completion:  Mid-2013

•

Estimated cost:  $250 million

The Future:

•

Connecticut legislature may review generation

legislation in 2007

•

New Hampshire likely to look at additional

biomass opportunities

Potential new generation not reflected in long-term growth forecasts

34

Transmission

35

About Northeast Utilities Transmission…

2,995

322

245

2,428

Projected

12/31/11

Rate Base

($ Millions)

1,072

191

3,258

Total NU

134

52

1,003

PSNH

76

36

489

WMECO

862

103

1,766

CL&P

Projected

12/31/06

Rate Base

($ Millions)

Transmission

Substations

Transmission

Circuit Miles

Operating

Company

Comparative Ranking of NU (miles)

•

Largest in New England

•

4th

largest in 11 northeast states

•

Nearly 2.4 million retail customers

•

Over 140 miles of new transmission planned

36

2006 Transmission Highlights

Our transmission system operated well over the summer

Peak load grew by more than 4% in New England in 2006

Peak load grew by 14% (3,000 MW) in New England since 2003

We have maintained excellent safety and environmental records

Project construction remains on-time and on-budget

Capital spending on target for $454.5 million in 2006

2006 plant-in-service projected to be $390 million --

$10 million greater than budget

We have completed and energized the $340 million Bethel-Norwalk project as of

October 12, $10 million under budget

Completion of projects will result in significant cost savings for customers

We are well-prepared for the implementation of the Energy Policy Act’s new

reliability standards

37

NU’s Transmission Revenue Requirements are 100% FERC Regulated

NU’s FERC-approved transmission tariffs fully track all

transmission costs

We have forward-looking rates, adjusted every six months, with an

annual true-up provision to ensure timely recovery of transmission

investment

FERC ROE decision issued October 31, 2006

38

Four Major SW Connecticut Projects –

A $1.65 Billion Investment

SWCT improvements have been a top priority in each of

ISO-NE’s last four regional transmission expansion plans. Our four major

projects there total about $1.65 billion in investment.

50% of CT

Load

Bethel-Norwalk

345 kV Underground

& Overhead

$350 Million

21 miles 345kV               

(56% underground)

10 miles 115kV            

(100% underground)

Completed October

2006 at a cost of $340

million

Middletown-Norwalk 345 kV

Underground & Overhead

$1,047 Million (NU Share)

Glenbrook Cables

115 kV underground

$183 Million

9 miles 115kV underground

Projected in-service date:  2008

Under contract –

construction under way

Long Island Cable

138 kV cross sound

$72 Million (NU share)

11 miles 138kV submarine cable

Joint project with LIPA

Projected in-service date:  2008

Under contract –

cable being built

69 miles 345kV  (35% underground)

57 miles 115kV  (1% underground)

Joint project with United Illuminating

Construction under way, 9%

complete; projected in-service date

2009

39

Under Construction

ISO-NE Approved

Future Regional

System Plan

Projects

Legend

Complete

Manchester-Hopewell

Oxford Substation

Fitzwilliam Substation

Barbour Hill Substation

Frost Bridge Corridor

Gosling Road Substation

Berkshire Solution

Springfield Solution

Southern New England Transmission Reinforcement (SNETR)

Deerfield Autotransformer

Windsor Substation

Southeast CT Solution

Weare Substation

Madbury Capacitor

Scobie Substation

Tioga

Woodland Capacitor

Pleasant Capacitor

Haddam Autotransformer

Bethel -

Norwalk

Glenbrook Statcom

Shunock Substation

Glenbrook Cables

White

Mountain

Upgrade

Northeastern Connecticut

Middletown -

Norwalk

Long Island Replacement Cable (LIRC)

Plumtree -

Triangle

Norwalk Harbor Substation Controls

Scobie –

Hudson Line

Timber Swamp

NU is a Major Part of New England’s

Transmission Infrastructure Upgrade

55%

NU

14%

NGRID

12%

Vermont

9%

NST

6%

UI

3% Bangor Hydro

1% Central Maine Power

Source: ISO-NE’s 2005

Regional System Plan

40

The Next Five Years:  Transmission Capital Expenditures

$0.00

$100.00

$200.00

$300.00

$400.00

$500.00

$600.00

$700.00

$800.00

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Other

SNETR

Major CT

Historic

Forecast

Up To $2.4 Billion

•

The Southern New England Transmission Reinforcement family of projects

is growing in scope and definition.

•

Over the next three years, a high level of capital spending is associated with

projects that have already received siting approval.

$1,062 Million

$1.1 Billion of major

CT projects in

2007-2011 forecast

period; $1.65 billion

in total

SNETR family of

projects estimated

at $710 million

during the 2007-

2011 forecast

period

41

Southern New England Transmission Reinforcement Projects

Are the Next Major Undertaking

Planning

Construction

Siting

2005

2005

2006

2007

2008

2009

2009

2010

2010

2011

2011

2012

2012

2013

2013

The SNETR

projects solve four area problems:

1.

Interstate transfer capability

2.

Connecticut East-West transfer capability

3.

Springfield Reliability

4.

New England East-West transfer capability

2006 Activities:

•

Complete planning studies

•

Analyze routing options

2007 Activities:

•

Finalize siting plans and file

applications in Connecticut and

Massachusetts

•

ISO-NE technical approval

1

4

3

2

42

Looking Beyond the Five-Year Horizon

The Southern New England Transmission Reinforcement family of

projects will be our next major undertaking

ISO-NE’s Regional System Plan has identified longer-term projects

within our franchise

ISO-NE is planning beyond the 30 GW grid to a 50 GW grid

Providing added transfer capacity between Maine and New Hampshire

Strengthening ties and transfer capability between southern New

Hampshire and  Massachusetts

FERC/NERC mandatory reliability standards may create new

projects

Serving future load growth and meeting redundancy requirements

Emerging technologies including smart grid investment

Replacement of aging equipment will be increasingly important

ISO-NE is evaluating stronger interconnections with Canada

43

NU’s Transformation Producing Solid Results, Prospects

Strategic plan elements announced one year ago are on or

ahead of schedule

Financial flexibility is significantly improved

Transmission business is growing rapidly to meet customer

needs

Distribution results expected to improve with reasonable rate

case outcomes

NU has a leadership role in meeting New England’s energy

challenges

44

Questions and Answers

Appendix

46

Projected Transmission Year-End Rate Base

$862

$2,073

$2,180

$2,428

$134

$172

$273

$279

$332

$322

$76

$84

$137

$179

$214

$245

$1,927

$1,520

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2006

2007

2008

2009

2010

2011

CL&P

PSNH

WMECO

Transmission

Rate Base

2006-2011

CAGR of 23%

47

Projected Distribution and Regulated Generation Year-End Rate Base

$1,790

$1,991

$2,116

$2,254

$2,393

$2,499

$837

$953

$1,073

$1,135

$1,207

$1,275

$341

$365

$384

$408

$424

$438

$497

$670

$676

$677

$687

$697

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

2006

2007

2008

2009

2010

2011

CL&P

PSNH

WMECO

Yankee Gas

Projected

Distribution &

Generation

Rate Base

CAGR of 7%

48

Projected Distribution Capital Expenditures

$206

$271

$260

$266

$270

$279

$105

$128

$134

$112

$128

$148

$28

$34

$32

$31

$31

$31

$86

$62

$42

$41

$41

$41

$0

$100

$200

$300

$400

$500

$600

2006

2007

2008

2009

2010

2011

CL&P

PSNH

WMECO

Yankee Gas

49

Projected Transmission Capital Expenditures

$420

$600

$517

$343

$231

$333

$87

$85

$37

$35

$6

$54

$45

$43

$42

$25

$17

$10

$0

$100

$200

$300

$400

$500

$600

$700

$800

2006

2007

2008

2009

2010

2011

CL&P

PSNH

WMECO

50

2007-2011:  Capital Expenditures and Depreciation

$766

$880

$1,217

$1,142

$890

$797

$896

$320

$309

$303

$290

$265

$234

$215

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

2005

Actual

2006 Est.

2007 Est.

2008 Est.

2009 Est.

2010 Est.

2011 Est.

Regulated Capex  (Incl. AFUDC)              

Depreciation

Significant capital spending in 2007-2008

*Includes approximately $18 million per year at corporate service companies