SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event report) January 23, 2001
Commission File Number 1-5324
NORTHEAST UTILITIES
(Exact name of registrant as specified in its charter)
MASSACHUSETTS 1-5324 04-2147929
State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File No.) Identification No.)
174 BRUSH HILL AVENUE, WEST SPRINGFIELD, MASSACHUSETTS
01090-0010
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code)
(413) 785-5871
(Former name or former address, if changed since last report)
Not Applicable
ITEM 5. OTHER EVENTS
On January 23, 2001, Northeast Utilities issued the following earnings news
release for the three and twelve months ended December 31, 2000:
"Northeast Utilities Reports Fourth Quarter and Full Year Results
HARTFORD, Connecticut, January 23, 2001-Strong increases in unregulated
energy sales and lower nonfuel operating costs drove a significant
improvement in Northeast Utilities (NU) operating results in 2000, the
company reported today.
Increases in unregulated energy sales pushed total NU revenues to a
record $5.90 billion in 2000, up 32 percent from $4.47 billion in 1999. The
growth in unregulated revenues more than offset a 5 percent retail rate
decrease on January 1, 2000 for customers of The Connecticut Light and Power
Company (CL&P) and a 5 percent rate cut on October 1, 2000 for Public Service
Company of New Hampshire (PSNH) retail customers.
NU reported year-end 2000 earnings before extraordinary items of $220.1
million, or $1.55 per share on a fully diluted basis, compared with earnings
of $34.2 million, or 26 cents per share, in 1999. In the fourth quarter of
2000, NU earned $67.8 million before extraordinary items, or $0.47 per share
on a fully diluted basis, compared with a loss of $15.7 million, or $0.12 per
share, in the same period of 1999.
Earnings in both years included a number of nonrecurring items. On an
operating basis, NU earned $221.4 million, or $1.56 per share on a fully
diluted basis, in 2000, compared with a profit of $117.3 million, or 89 cents
per share, in 1999. In the fourth quarter of 2000, NU recorded operating
earnings of $67.8 million, or $0.47 per share on a fully diluted basis,
compared with fourth-quarter operating earnings of $47.0 million, or $0.35
per share, in 1999.
Because of extraordinary charges, NU reported a net loss for the year.
Fourth-quarter 2000 results included an after-tax write-off by PSNH of $225
million of stranded costs under an industry restructuring settlement with the
state of New Hampshire. When combined with other effects from restructuring,
PSNH's net write-off totaled $214.2 million, or $1.51 per share. PSNH is an
operating subsidiary of NU. Its restructuring plan was upheld by the New
Hampshire Supreme Court on January 16, 2001.
In addition to these extraordinary items, 2000 results reflect two
significant one-time items recognized earlier in the year. They include
charges of $11.7 million for the settlement of certain nuclear-related issues
and a one-time after-tax gain of $10.4 million related to the investment in
NEON Communications Inc., of Mode 1 Communications, Inc., another NU
subsidiary.
Write-offs in 1999 related to the settlement of nuclear issues, industry
restructuring, and NU's pending merger with Consolidated Edison, Inc. totaled
$83.1 million, or $0.63 per share, of which $62.7 million, or $0.47 per
share, was recognized in the fourth quarter of 1999.
Including all of the extraordinary and other nonrecurring effects, NU
lost $13.8 million, or $0.10 per share on a fully diluted basis, in 2000,
compared with earnings of $34.2 million, or $0.26 per share, in 1999. In the
fourth quarter of 2000, NU lost $166.1 million, or $1.15 per share on a fully
diluted basis, compared with a loss of $15.7 million, or $0.12 per share, in
the same period of 1999. Michael G. Morris, NU's Chairman, President and
Chief Executive Officer, said that NU currently projects standalone 2001
earnings of between $1.40 per share and $1.60 per share.
Morris attributed the improved operating results to excellent
performance at the Millstone nuclear station in 2000, effective cost control,
and dramatically improved performance at NU's unregulated businesses.
Millstone 3 operated at virtually a 100 percent capacity factor in 2000 and
has been on line for 575 consecutive days. Millstone 2 operated at an 82
percent capacity factor in 2000. Millstone Station's strong performance
helped NU lower its non-fuel operation and maintenance costs to $1.11 billion
in 2000 from $1.20 billion in 1999.
Morris said he was quite pleased with the performance of NU's
unregulated energy businesses. Those operations earned $28.5 million in 2000
on revenues of $2.0 billion, compared with a loss of $37.0 million in 1999 on
revenues of $648.9 million in 1999. In the fourth quarter of 2000, NU's
unregulated energy businesses earned $13.6 million, compared with a loss of
$8.0 million in the fourth quarter of 1999.
Morris attributed the improved performance at NU's unregulated
businesses to better balancing the company's supply and purchase obligations,
due in part to the purchase of 1,289 megawatts of hydroelectric and pumped
storage generation by the unregulated businesses in March 2000.
Morris said fourth-quarter 2000 operating results were also helped by
much lower temperatures than during the same period of 1999. Retail
kilowatt-hour electric sales were up 5.9 percent in the fourth quarter of
2000, 3.2 percent on a weather-adjusted basis, compared with the same period
of 1999. Annual electric sales were up 0.8 percent in 2000, 1.9 percent on a
weather-adjusted basis, compared with 1999. On the strength of a strong
start to the heating season, Yankee Energy System, Inc., which merged with NU
on March 1, 2000, earned $6 million in the fourth quarter of 2000.
Morris said NU booked no additional costs in the fourth quarter of 2000
in connection with its proposed merger with Consolidated Edison. NU
currently hopes to complete its merger with Consolidated Edison late in the
first quarter or early in the second quarter of 2001. Should the process of
closing the merger advance over the next several weeks, NU would likely
record additional merger-related charges in the fourth quarter of 2000.
NU operates New England's largest energy delivery system with
approximately 1.77 million electric customers in Connecticut, New Hampshire
and Massachusetts and 185,000 natural gas customers in Connecticut, and is
one of the largest competitive energy suppliers in New England. NU has
approximately 144 million shares outstanding.
This press release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, which are
statements of future expectations and not facts. Actual results or
developments might differ materially from those included in the forward-
looking statements because of factors such as competition and industry
restructuring, changes in economic conditions, changes in historical weather
patterns, changes in laws, regulations or regulatory policies, developments
in legal or public policy doctrines, technological developments and other
presently unknown or unforeseen factors. Other risk factors are detailed from
time to time in NU's reports to the Securities and Exchange Commission."
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NORTHEAST UTILITIES
(registrant)
/s/Randy A. Shoop
Assistant Treasurer - Finance
Date: January 24, 2001