Exhibit 99
SLIDE 1
EEI Fall Financial Conference
Orlando, Florida
October 27, 2003
NU LOGO Northeast
Utilities System
SLIDE 2
This presentation contains forward-looking statements, which are
statements of future expectations and not facts. Actual results
or developments might differ materially from those included in
these forward-looking statements because of factors such as
competition and industry restructuring, changes in economic
conditions, changes in weather patterns, changes in laws,
regulations or regulatory policies, developments in legal or
public policy doctrines, technological developments, volatility
in electric and natural gas commodity markets, and other
presently unknown or unforeseen factors. Other risk factors are
detailed from time to time in the company's SEC reports.
SLIDE 3
Topics To Discuss
- NU today - strategy overview
- Regulated business growth
- Competitive business outlook
- Financial liquidity and performance
SLIDE 4
Strategy - How the Puzzle Fits Together
Regulated Businesses Competitive Businesses
- - Continue to implement best
practices among four regulated - Achieve targeted returns
operating companies on investments by
maintaining gross margins
- - Build needed transmission
facilities to remedy critical
SW Connecticut supply situation
- - Expand CT natural gas infrastructure - Manage risks effectively
- - Timely recovery of purchased - Build service business
energy costs and SMD costs
- - Important restructuring
legislation passed in Connecticut
- Maintain strong balance sheet
SLIDE 5
2003 Improvements Were Driven by Competitive Business Results
(Through September 30)
Bar graph chart comparing YTD 2002 and YTD 2003 Competitive
Results (Shown as Earnings in Millions)
YTD 2002 YTD 2003
CL&P $58.2 $59.0
PSNH $46.4 $34.5
Yankee Gas $ 6.1 $ 3.4
WMECO $26.9 $13.9
NUEI Merchant Energy $(39.9) $22.3
NUEI Services $ 1.8 $ 2.1
SLIDE 6
2003 Earnings Range Tightened At Upper End
Bar chart showing Earnings Per Share for the Periods through
9/30/02, 9/30/03 and Projected Year-End 2003
Projected
9/30/02 9/30/03 Year-End 2003*
$0.74 $0.99 $1.20 - $1.30
*Excluding any impact regarding LMP cost issue at Select
Energy
SLIDE 7
Significant Exposure Exists For Select in 2003 with CL&P LMP Costs
Bar graph showing Select's share of CL&P LMP costs, in millions, broken
up into line losses and congestion costs, actual for the period
3/1/03 - 9/30/03 and estimated for the period 3/1/03 - 12/31/03
3/1/03 to 9/30/03 3/1/03 to 12/31/03
Actual - Select Share Estimated - Select Share
Line Line
Losses Congestion Losses Congestion
$48.1 $23.3 $63.0 $27.0
SLIDE 8
2004 Earnings Guidance
Earnings Per Share
Regulated Businesses $1.08 - $1.20
Competitive Businesses $0.22 - $0.30
Parent Expense ($0.10)
Consolidated NU $1.20 - $1.40
SLIDE 9
Regulated Company Focus:
Enhance Service By Modernizing
Infrastructure
- - Extend 345,000-volt system into SW Connecticut
- - Continue to modernize the distribution system to accommodate
advances in technology and customer demands
- - Build out Connecticut natural gas delivery system
SLIDE 10
Chronically Congested Areas of the Northeast
Map of Northeastern United States
Below Average Pricing
10% of Connecticut
Maine
New Hampshire
3/4 of New York State
Rhode Island
Average Pricing
1/4 New York State (adjoining NJ, CT, MA and SW VT excluding
New York City)
Most of Pennsylvania
Portion of Virginia
Massachusetts
80% of Connecticut
Above Average Pricing
Vermont
SE New York (closest to Fairfield County, CT and including New York
City and the boroughs)
New Jersey
Southeast Pennsylvania (adjoining NJ, SE NY, Eastern VA, Maryland and
Delaware)
Maryland
Delaware
Boston area
10% of Connecticut
SLIDE 11
New England Markets Require Additional Transmission Infrastructure
NU is Involved in Addressing
4 of 5 Critical Interfaces
Map of New England States with arrows showing critical interfaces
from:
1. SW border of Maine with arrow pointing Southwest into New
Hampshire
2. Southern Border of New Hampshire with arrow pointing into
NE Massachusetts
3. SE Massachusetts around Boston and Cape Cod with arrow
pointing North out of Rhode Island
4. Western Border of Rhode Island with arrow pointing west to
Connecticut
5. Connecticut with arrow pointing to Southwest portion of
Connecticut
SLIDE 12
Transmission Business: Major Capital Projects
Chart with timeline from 2001 - 2008 breaking down cost for Bethel to
Norwalk and Middletown to Norwalk projects
Bethel to Norwalk*
6/2001 - 11/2003 Siting Process
11/2003 - 10/2005 Construction
Total Cost for Siting Process and Construction for period - $200M
7/03-- Siting Council Decision
9/03-- Siting Council Revised Decision
11/03-- Appeal Filing Period Ends
11/03-- Substation Construction Start
04/04--Underground Cable Start
01/05-- Overhead Line Start
11/05-- Project In Service
Middletown to Norwalk
10/2002 - End of 2004 Siting Process
1/2005 - 11/2007 Construction
Total Cost for Siting Process and Construction for period - $496M**
05/03-- Municipal Consultation
10/03-- File Siting Council Application
11/04-- Siting Council Decision
1/05-- Substation Construction Start
03/05-- Overhead Line/Underground Cable Start
12/07-- Project In Service
Capital Program (both projects)
2001 $ 26M
2002 $ 55M
2003 $133M
2004 $270M
2005 $240M
2006 $200M
2007 $200M
2008 $200M
*The City of Norwalk has filed an appeal
** NU's 80% share
SLIDE 13
Key Federal Issues
- - PUHCA repeal
- - Transmission siting
- - Blackout implications
SLIDE 14
Litigation Update
ConEd Litigation
- - U.S. District Court in NY issued positive decision on summary
judgment motions in March
- - Motions in limine were filed in spring
- - Side issues related to state court lawsuit by individual former
shareholder and Brody case
NRG - CL&P contract status
- - On August 15, FERC issued final decision ordering NRG-PMI to serve
CL&P contract through 12/31/03
- - NRG-PMI appeals pending in Second Circuit and D.C. Circuit
courts
SLIDE 15
Regulated Businesses
SLIDE 16
Operating Company Organization
Illustration - Map of Connecticut showing CL&P service area
CL&P
Customers: 1,165K
Residential 1,057K
Commercial 104K
Industrial 4K
Revenues: $2.5B
4,400 Square Miles
Illustration - Map of New Hampshire showing PSNH service area
PSNH
Customers: 455K
Residential 388K
Commercial 64K
Industrial 3K
Revenues: $1.0B
5,445 Square Miles
Illustration - Map of Connecticut showing Yankee Gas service area
Yankee Gas
Customers: 192K
Residential 168K
Commercial 22K
Industrial 2K
Revenues: $293M
1,995 Square Miles
Illustration - Map of Massachusetts showing WMECO service area
WMECO
Customers: 204K
Residential 184K
Commercial 19K
Industrial 1K
Revenues: $369M
1,490 Square Miles
SLIDE 17
Utility Group Financial Indicators
Bar graph showing Cumulative Net Income (In Millions)
1ST Qtr. $ 57.4
2nd Qtr. $ 72.7
3rd Qtr. $110.8
Key Performance Indicators
------------September YTD------------------
Better/
Worse
than
Financial Results Targets target
Electric Sales (GWH) 27,231 26,125 Better
Gas Sales (MMCF) 33,078 36,029 Worse
Retail Electric Rev. ($M) 2,744.7 2,571.9 Better
(Sept. YTD)
Gas Revenues ($M) 255.1 205.7 Better
(Sept. YTD)
O&M ($M) 555.2 557.6 Better
Capital ($M) 379.3 406.3 Worse
SLIDE 18
Utility Group Reliability
Indicators
We're beating our YTD Reliability (SAIDI) target by 21 minutes. Capital
improvements and fewer weather events have contributed to this positive
YTD performance.
Graph of Cumulative SAIDI for calendar year, by month showing actual
performance beating goal on a monthly basis
Our Gas Leak Response Rate performance continues to be better than
target for both normal and after hours. We're beating our
Customer Contact Survey goal by 1.0%. Our safety OSHA Incident
Rate is better than target, however, we missed our Preventable
Motor Vehicle Accidents (PMVAs) year-to-date target.
Key Performance Indicators
------------September YTD------------------
Better/
Worse
than
Operational Results Targets target
SAIDI (Minutes) 79.42 100.75 Better
Gas Leak Response Rate 99.6% 94.5% Better
(Normal)
Gas Leak Response Rate 99.7% 96.5% Better
(After Hrs.)
Customer Contact Survey 81.6% 80.6% Better
Safety - OSHA Rate 2.63 4.05 Worse
Safety - PMVAs 87 82 Worse
SLIDE 19
Distribution Systems Require Increased Investment
(Illustration presented as bar graph)
Distribution Rate Base
Electric and Gas (Shown in Millions of $)
2004 Est. $2606.5
2005 Est. $2886.3
2006 Est. $3231.6
2007 Est. $3532.9
2008 Est. $3739.5
SLIDE 20
CL&P Legislative Status
- - Public Act 03-135 signed by Governor Rowland on June 25, 2003
- - Standard Offer becomes Transitional Standard Offer (TSO) and
is extended through 2006, must file TSO case with DPUC
- - Raises base rate cap up to 11.1% for 2004 and beyond
- - Must file rate case with DPUC
- - Procurement fee of 0.5/mill for securing TSO plus additional
0.25/mill incentive can be earned
- - Flow through of all energy-related and `federally mandated' costs:
- LMP
- Energy
- Reliability Must Run (RMR)
- Locational ICAP
SLIDE 21
Key Regulatory Items for CL&P
- - Energy adjustment clause continues to recover 2003 LMP
costs, subject to refund as determined by FERC
- - TSO filing to increase rates 11.1% made July 1
- - Initial hearings complete - August 1 rate case was filed
- Four-year rate plan
- Increases of 6% ($133.5 million) in 2004; 1% annually
in 2005-2007 (included within 11% TSO increase)
- Recovers rising distribution expenditures
- Final decision due December 15, 2003
- - TSO RFP released on September 19, 2003; bids due this morning
SLIDE 22
PSNH Recent Restructuring History
5/2/01: PSNH implements industry restructuring
5/22/01: NH legislation modifies restructuring statute; PSNH
must hold generating plants until 2/04
9/12/02: NHPUC approves Seabrook sale to FPL.
Seabrook sale ends power purchase, decommissioning
obligations
12/31/02: NHPUC approved recovery of all but $17,000 of PSNH's
request to recover about $200M of deferred fuel and
purchased power costs
2/1/03: 2% rate increase due to energy rate adjustment
4/23/03: Legislation signed requiring PSNH to retain its
generation until at least 4/30/06
SLIDE 23
PSNH Update - Current Items
5/30/03: PSNH bought out 14 small QF hydro rate orders for $20
million; net savings of $5 million
8/28/03: PSNH proposed $70 million conversion of Schiller unit
to burn wood chips. NHPUC decision due this fall
9/12/03: PSNH applied to NHPUC to raise its transition service
energy rate
Year End: PSNH will close on CVEC acquisition
- Already approved by NHPUC and FERC
Year End: PSNH will file rate case
2/1/04: New energy supply rate to be effective; new delivery
rates due to take effect, subject to later adjustment
- Surplus generation, lack of congestion mean LMP
minor issue
SLIDE 24
WMECO Update
- - Rebidding default and standard offer service
- - WMECO standard offer RFP was issued 9/29/03; final bids were
received on 10/22/03
- - Final bids for default service due 11/4/03
- - Annual reconciliation filing now before DTE
- - No rate case until at least 2005
- - Lack of transmission congestion means LMP is minor issue
SLIDE 25
Yankee Update
- - 4.4 mile Meriden Gas Turbine pipeline to connect 505 MW
combined cycle NRG unit to Tennessee, Algonquin pipeline
- DPUC, Connecticut Siting Council approved project
- Construction halted in October 2002 when NRG canceled
project and defaulted
- Yankee pulled $16 million Letter of Credit
- - Connection to NEGASCO in Rhode Island
- 20-year term
- DPUC and FERC approval sought
- Projected in-service date of 3Q 2004
- - LNG facility now before DPUC
- Local approvals obtained
- $60 million project
- Three years to build
- Likely filing of rate case in second half of 2004
SLIDE 26
Transforming the Utility Group
- - Healthy regulated businesses with needed rising capital
investments in energy delivery systems
- - Realize the internal synergies of four operating companies
while maintaining distinct external identities
- - Run each company as a profit center
- - Develop "best of best" mentality
SLIDE 27
Competitive Business
SLIDE 28
(Organizational Chart)
NU Enterprises Organization
Select Northeast Select Northeast
Energy Generation Energy Generation
Company Services Services
- - Wholesale
- - Retail
MERCHANT ENERGY ENERGY/GENERATION SERVICES
SLIDE 29
NU Enterprises Businesses
(Chart showing types of businesses served)
The NU Enterprises' Competitive Businesses
Participate Across the Energy Value Chain
Inside End use
Grid Wholesale the Customer
Fuel Generation Supply T&D Fence
Generation
Merchant Energy X X X X
Business
Northeast X X X
Generation
Services Company
Select Energy X X
Services, Inc.
Note - End use customers do not include residential market
segment
SLIDE 30
NU Enterprises
2003 3rd Quarter
(Net income in millions) Q3 2003 Q3 2002 YTD 2003 YTD 2002
Retail $2.4 ($ 8.1) ($1.6) ($26.3)
Wholesale $4.5 ($ 2.4) $23.9 ($13.6)
Total Merchant Energy $6.9 ($10.5) $22.3 ($39.9)
Energy/Generation $0.2 $ 1.7 $ 2.1 $ 1.8
Services
Total NU Enterprises* $6.9 ($ 9.0) $24.0 ($38.7)
* Includes NU Enterprises Parent Costs
SLIDE 31
NU Enterprises
2003Year-End Projection
2003 Y/E 2002 Y/E
(Net income in millions) Projection Actual
Retail ($4) - ($2) ($28)
Wholesale $27 - $30 ($25)
Total Merchant Energy $23 - $28 ($53)
Energy/Generation $2 - $4 $0
Services
Total NU Enterprises* $25 - $32 ($53)
* Includes NY Enterprises Parent Costs
SLIDE 32
What Has Created 2003 Success?
NU Enterprises' 2003 success has been driven in large part by
changes in the way in which we do business
- - Improved portfolio management
- - Resized retail organization
- - Improved realized retail margins
- - Refocused trading as a wholesale support function
significantly reducing risk
Other factors include:
- - Normal rainfall levels impacting hydroelectric output
- - Improved results from generation assets
SLIDE 33
2004 Net Income Preview
Total Projected
2004 Net Income $28-$38 Million
Pie Chart Showing Projected Net Income for 2004
Merchant Energy $24 - $31 million
Energy/Generation Services $ 4 - $ 7 million
SLIDE 34
What Is Needed for 2004 Success?
NU Enterprises' 2004 success will be driven by:
- - Achieve targeted wholesale and retail origination
- - Successful portfolio management
- - Achieve targeted growth in services business
SLIDE 35
Calendar of Bids
in Wholesale Market
Total Load
Region Company Service Start Date Term (MW)
New England MECo Default 11/1/03 3 mos. to
1 yr. 900
NSTAR SO & DS 1/1/04 3 to 14
mos. 1,600
UI TSO 1/1/04 1 to
3 yrs. 1,200
CL&P TSO 1/1/04 1 to 3
yrs. 5,000
WMECO SO & DS 1/1/04 3 to 14
mos. 710
MECO Ind. Default 2/1/04 3 mos. 280
Maine SO 3/1/04 6 mos. 520
NSTAR Ind. Default 4/1/04 3 mos. 450
WMECO Ind. Default 4/1/04 3 mos. 50
PJM NJ IOUs BGS 6/1/04 1 to 3
yrs. 10,400
MD IOUs Full Req. 7/1/04 1 to 3
yrs. 5,500
Total Available 26,610
SLIDE 36
NGC Update
- - Power plants are operating reliably
- - Rainfall has benefited conventional hydroelectric
- - Revenue stream sufficient to cover bonds
- - New tolling arrangement with Select Energy to be negotiated
for post-2005
SLIDE 37
Financial Update
SLIDE 38
NU Forecasting Significant
Regulated Capital Investment
Program
[Bar chart illustrating Forecasted Regulated Capital Investment
Program]
Shown in $ Millions - Excluding AFUDC
2004 2005 2006 2007 2008
Regulated
Electric $668 $607 $530 $490 $507
Regulated
Natural Gas $ 70 $ 60 $ 77 $ 43 $ 40
NGC $ 11 $ 6 $ 8 $ 5 $ 2
Other $ 26 $ 20 $ 21 $ 19 $ 21
TOTAL $775 $693 $636 $557 $570
SLIDE 39
2004-2008: How We Expect to Fund
$3.2B in CapEx and $0.5B in
Dividends
Pie Chart showing sources of funding for capital expenditures
(shown in $Millions)
Earnings and Other Internal Sources $1,370
Depreciation $1,390
Debt $ 840
Cash $ 140
SLIDE 40
Strong Current Capitalization
Ratios Provide Solid Foundation for
Growth
(In Millions)
- ---------------------------9/30/93------------------------------------
Common Preferred Debt RRBs
NU
Consolidated $2,254 45.3% $116 2.3% $2,605 52.4% $1,773
CL&P $ 724 43.4% $116 6.9% $ 830 49.7% $1,154
PSNH $ 345 42.8% $ 0 0% $ 461 57.2% $ 484
WMECO $ 154 44.9% $ 0 0% $ 189 55.1% $ 135
Yankee Gas $ 217* 47.5% $ 0 0% $ 240 52.5% $ 0
NGC $ 445 52.5% $ 0 0% $ 403 47.5% $ 0
*Excludes equity associated with goodwill.
SLIDE 41
Current Credit Ratings Reflect
Financial Strength
Moody's S&P Fitch
Investment Grade A2/A CL&P Bonds
A3/A- CL&P Issuer CL&P Bonds CL&P Bonds
CL&P
Unsecured
WMECO Issuer
WMECO
Unsecured
PSNH Bonds
Baa1/ NU Issuer NU Corporate CL&P Unsecured
BBB+ Credit
NU Notes CL&P Corporate WMECO Unsecured
PSNH Issuer WMECO Corporate
Credit
Yankee WMECO Unsecured
Issuer
PSNH Corporate
Credit
PSNH Bonds
Yankee Corporate
Credit
Baa2/ CL&P NU Notes NU Notes
BBB Preferred
NGC Bonds CL&P Unsecured WMECO Unsecured
PSNH Bonds
NGC Bonds(2005)
Baa3/ CL&P Preferred NGC Bonds(2026)
BBB- NGC Bonds
Below Investment None None None
Grade
SLIDE 42
Liquidity Supported by Minimal Debt
Maturities and Sinking Funds also
Modest: None at CL&P, PSNH,
WMECO*
Bar chart illustrating amount of liquidity supported by minimal
debt maturities, and sinking funds
(Shown in Millions of Dollars)
2004 2005 2006 2007 2008
NGC $32 $38 $ 4 $ 5
NU $24 $26 $21 $150
Other $ 7 $ 6 $ 6 $ 5 $ 4
Yankee $ 1 $21 $ 1 $ 1 $ 1
*Excludes Rate Reduction Bond maturities;
the System has no sinking fund preferred stock
SLIDE 43
Status of Credit Facilities
Facility Accessed
($millions) ($millions)
Parent/Competitive Revolver/LOCs $350 $116
Regulated Revolver $300 $ 10
CL&P Accounts Receivable $100 $ 25
Cash $138
Total (as of October 14, 2003) $888 $151
SLIDE 44
Cash Flows Support Common Dividend Increases
[Bar chart illustrating common dividend levels for the period
from 1995 - 2003]
Dividends/share
1995 $1.76
1996 $1.38
1997 $0.25
1998 $0.00
1999 $0.10
2000 $0.40
2001 $0.45
2002 $0.525
2003 $0.575
SLIDE 45
Key Earnings Issue: Pension Credits
Bar chart illustration
(In $Millions)
1996 ($1)
1997 $ 13
1998 $ 44
1999 $ 53
2000 $ 89
2001 $100
2002 $ 73
2003 (Estimated) $ 32
2004 (Estimated) ($14)
2005 (Estimated) ($40)
Note: Amounts are Pre-Tax. 70% of credit is expensed; 30% is capitalized
SLIDE 46
Corporate Governance Status
- - Board Implementation
- New Committee Charters
- Senior Financial Officers Code of Ethics
- All non-management members "Independent"
- Two financial experts on Audit Committee
- - Sarbanes-Oxley
- Plans in place to be fully compliant by required date
- Internal controls assessment process ongoing
SLIDE 47
Summary
- - Earnings for 2003 are expected to be at higher end of
earlier projections
- - 2004 earnings projections established
- - Plans for transmission build-out progressing
- - New Connecticut legislation signed and regulatory
implementation under way
- - Recovery of competitive businesses on track
- - Financial profile remains strong
- - Q&A