March 21, 2001
NORTHEAST UTILITIES AND SUBSIDIARIES
------------------------------------
FINANCIAL REPORT
----------------
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------------- ---------------------------
2000 2000
(Restated) 1999 (Restated) 1999
------------ ------------- ------------- -------------
(Thousands of Dollars, except share information)
Operating Revenues............................. $ 1,497,379 $ 1,148,736 $ 5,876,620 $ 4,471,251
============= ============= ============= =============
(Loss)/Earnings for common shares:
Before extraordinary loss, net of taxes..... $ 52,959 $ (15,674) $ 205,295 $ 34,216
Extraordinary (loss), net of tax benefits
of $169,562............................... (233,881) - (233,881) -
------------- ------------- ------------- -------------
Total Net (Loss)/Income.................... $ (180,922) $ (15,674) $ (28,586) $ 34,216
============= ============= ============= =============
Fully Diluted (Loss)/Earnings Per Common Share:
Before extraordinary loss, net of taxes...... $ 0.36 $ (0.12) $ 1.45 $ 0.26
Extraordinary (loss), net of taxes........... (1.62) - (1.65) -
------------- ------------- ------------- -------------
Total Fully Diluted (Loss)/Earnings $ (1.26) $ (0.12) $ (0.20) $ 0.26
Per Common Share........................... ============= ============= ============= =============
Common Shares Outstanding (fully diluted)...... 144,109,003 131,706,611 141,967,216 132,031,573
============= ============= ============= =============
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 the Northeast Utilities System
and is not a representation, prospectus, or intended for use in connection with any purchase or sale
of securities.
NORTHEAST UTILITIES AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------------- ---------------------------
2000 2000
(Restated) 1999 (Restated) 1999
------------- ------------- ------------- -------------
(Thousands of Dollars, except share information)
Operating Revenues............................. $ 1,497,379 $ 1,148,736 $ 5,876,620 $ 4,471,251
------------- ------------- ------------- -------------
Operating Expenses:
Operation -
Fuel, purchased and net interchange power.... 817,911 437,025 3,321,226 1,898,314
Other........................................ 222,125 280,004 850,192 855,917
Maintenance................................... 74,547 67,223 255,884 340,419
Depreciation.................................. 62,307 57,598 239,798 302,305
Amortization of regulatory assets, net........ 87,679 378,514 276,139 596,437
Federal and state income taxes................ 58,579 68,927 230,031 180,883
Taxes other than income taxes................. 59,730 59,254 238,587 261,353
Gain on sale of utility plant................. - (287,672) - (308,914)
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Total operating expenses............... 1,382,878 1,060,873 5,411,857 4,126,714
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Operating Income............................... 114,501 87,863 464,763 344,537
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Other Income/(Loss):
Equity in earnings of regional nuclear
generating and transmission companies..... 6,846 (853) 14,586 5,034
Nuclear related costs........................ 1,437 (50,010) (17,907) (71,066)
Other, net................................... (12,633) (23,111) (1,689) (30,855)
Minority interest in loss of subsidiary...... (2,325) (2,325) (9,300) (9,300)
Income taxes................................. 23,322 43,277 68,306 82,272
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Other income/(loss), net............... 16,647 (33,022) 53,996 (23,915)
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Income before interest charges......... 131,148 54,841 518,759 320,622
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Interest Charges:
Interest on long-term debt................... 44,560 62,525 200,697 258,093
Other interest............................... 30,890 2,780 98,605 5,558
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Interest charges, net.................. 75,450 65,305 299,302 263,651
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Income after interest charges.......... 55,698 (10,464) 219,457 56,971
Preferred Dividends of Subsidiaries............ 2,739 5,210 14,162 22,755
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Income/(loss) before extraordinary loss,
net of taxes........................... $ 52,959 $ (15,674) $ 205,295 $ 34,216
Extraordinary (loss), net of tax benefits
of $169,562............................. (233,881) - (233,881) -
------------- ------------- ------------- -------------
Net (Loss)/Income.............................. $ (180,922) $ (15,674) $ (28,586) $ 34,216
============= ============= ============= =============
Fully Diluted (Loss)/Earnings Per Common Share:
Before extraordinary loss, net of taxes...... $ 0.36 $ (0.12) $ 1.45 $ 0.26
Extraordinary (loss), net of taxes........... (1.62) - (1.65) -
------------- ------------- ------------- -------------
Total Fully Diluted (Loss)/Earnings
Per Common Share........................... $ (1.26) $ (0.12) $ (0.20) $ 0.26
============= ============= ============= =============
Common Shares Outstanding (fully diluted)...... 144,109,003 131,706,611 141,967,216 132,031,573
============= ============= ============= =============
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 the Northeast Utilities System
and is not a representation, prospectus, or intended for use in connection with any purchase or sale
of securities.
Note: The ratio of earnings to fixed charges at December 31, 2000, is 2.21x.
NORTHEAST UTILITIES AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31,
-----------------------------
2000
(Restated) 1999
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(Thousands of Dollars)
ASSETS
- ------
Utility Plant, at cost:
Electric................................................ $ 9,370,176 $ 9,185,272
Gas and other........................................... 861,727 226,002
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10,231,903 9,411,274
Less: Accumulated provision for depreciation......... 7,041,279 6,088,310
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3,190,624 3,322,964
Unamortized PSNH acquisition costs...................... - 324,437
Construction work in progress........................... 228,330 177,504
Nuclear fuel, net....................................... 128,261 122,529
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Total net utility plant.............................. 3,547,215 3,947,434
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Other Property and Investments:
Nuclear decommissioning trusts, at market............... 740,058 711,910
Investments in regional nuclear generating
companies, at equity................................... 62,477 81,503
Other, at cost.......................................... 137,291 94,768
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939,826 888,181
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Current Assets:
Cash and cash equivalents............................... 200,017 255,154
Investments in securitizable assets..................... 98,146 107,620
Receivables, net........................................ 472,863 310,190
Unbilled revenues....................................... 121,090 75,728
Fuel, materials and supplies, at average cost........... 163,711 171,496
Recoverable energy costs, net - current portion......... - 73,721
Prepayments and other................................... 94,528 76,702
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1,150,355 1,070,611
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Deferred Charges:
Regulatory assets:
Recoverable nuclear costs............................. 2,565,798 2,210,767
Income taxes, net..................................... 636,295 636,563
Deferred costs - nuclear plants....................... 29,000 111,588
Unrecovered contractual obligations................... 255,809 349,189
Recoverable energy costs, net......................... 332,490 228,166
Other................................................. 91,409 106,166
Unamortized debt expense................................ 33,475 39,192
Goodwill and other purchased intangible assets.......... 324,389 23,542
Prepaid pensions........................................ 139,546 669
Other .................................................. 171,542 75,984
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4,579,753 3,781,826
------------ ------------
Total Assets.............................................. $ 10,217,149 $ 9,688,052
============ ============
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
the Northeast Utilities System and is not a representation, prospectus, or intended for
use in connection with any purchase or sale of securities.
NORTHEAST UTILITIES AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31,
-----------------------------
2000
(Restated) 1999
------------- -------------
(Thousands of Dollars)
CAPITALIZATION AND LIABILITIES
- ------------------------------
Capitalization:
Common shareholders' equity:
Common shares*, $5 par value - authorized
225,000,000 shares; 148,781,861 shares issued and
143,820,405 shares outstanding in 2000 and
137,393,829 shares issued and 131,870,284 shares
outstanding in 1999.................................. $ 693,345 $ 636,405
Capital surplus, paid in.............................. 927,059 776,290
Temporary equity from stock forward................... 215,000 215,000
Deferred contribution plan - employee stock
ownership plan...................................... (114,463) (127,725)
Retained earnings..................................... 495,873 581,817
Accumulated other comprehensive income................ 1,769 1,524
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Total common shareholders' equity.............. 2,218,583 2,083,311
Preferred stock not subject to mandatory redemption..... 136,200 136,200
Preferred stock subject to mandatory redemption......... 15,000 121,289
Long-term debt.......................................... 2,029,593 2,372,341
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Total capitalization........................... 4,399,376 4,713,141
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Minority Interest in Consolidated Subsidiary.............. 100,000 100,000
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Obligations Under Capital Leases.......................... 47,234 62,824
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Current Liabilities:
Notes payable to banks.................................. 1,309,977 278,000
Long-term debt and preferred stock - current portion.... 340,041 503,315
Obligations under capital leases - current portion...... 112,645 118,469
Accounts payable........................................ 538,983 347,321
Accrued taxes........................................... 54,088 158,684
Accrued interest........................................ 41,131 37,904
Other................................................... 144,931 126,768
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2,541,796 1,570,461
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Deferred Credits and Other Long-term Liabilities:
Accumulated deferred income taxes....................... 1,585,494 1,688,114
Accumulated deferred investment tax credits............. 153,155 140,407
Decommissioning obligation - Millstone 1................ 692,560 702,351
Deferred contractual obligations........................ 244,608 358,387
Other................................................... 452,926 352,367
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3,128,743 3,241,626
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Total Capitalization and Liabilities...................... $ 10,217,149 $ 9,688,052
============= =============
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
the Northeast Utilities System and is not a representation, prospectus, or intended for
use in connection with any purchase or sale of securities.
*Book value per share at December 31, 2000, is $15.43.