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 reported) November 25, 2003
-------------------
Commission Registrant; State of Incorporation I.R.S. Employer
File Number Address and Telephone Number Identification No.
1-5324 NORTHEAST UTILITIES 04-2147929
(a Massachusetts voluntary association)
174 Brush Hill Avenue
West Springfield, Massachusetts 01090-0010
Telephone (413) 785-5871
0-11419 THE CONNECTICUT LIGHT AND POWER COMPANY 06-0303850
(a Connecticut corporation)
107 Selden Street
Berlin, Connecticut 06037-1616
Telephone (860) 665-5000
1-6392 PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE 02-0181050
(a New Hampshire corporation)
780 North Commercial Street
Manchester, New Hampshire 03101-1134
Telephone (603) 669-4000
0-7624 WESTERN MASSACHUSETTS ELECTRIC COMPANY 04-1961130
(a Massachusetts corporation)
174 Brush Hill Avenue
West Springfield, Massachusetts 01090-0010
Telephone (413) 785-5871
Not Applicable
---------------------
(Former name or former address, if changed since last report)
Item 5. Other Events and Regulation FD Disclosure
As part of its transition to self performance of
decommissioning, management of Connecticut Yankee Atomic Power
Company (CYAPC) has prepared a draft updated estimate of the cost
of decommissioning the Connecticut Yankee nuclear unit. The new
draft estimate reflects primarily the impacts of the termination
of the turnkey decommissioning contractor, Bechtel Power
Corporation, in July 2003 for default and the fact that CYAPC is
now self-performing completion of the decommissioning project.
The draft estimate includes an increase of approximately $270
million over the estimate reported in November 2002. CYAPC had
terminated its decommissioning contract with Bechtel in July 2003
due to Bechtel's history of incomplete and untimely performance
and refusal to perform remaining decommissioning work. In June,
2003, Bechtel filed a complaint against CYAPC in Connecticut
Superior Court asserting a number of claims, including wrongful
termination. In August, 2003, CYAPC filed a counterclaim,
including counts for breach of contract, negligent
misrepresentation and breach of duty of good faith and fair
dealing. Bechtel has departed the site and the decommissioning
responsibility has been transitioned to CYAPC, which has
recommenced the decommissioning process.
The estimate which was previously updated and reported in
November 2002 included an increase of approximately $140 million
as compared to the cost estimate that had been approved as part
of the April 2000 rate case settlement with the Federal Energy
Regulatory Commission (FERC). The 2002 updated estimate stemmed
primarily from additional security costs as well as the corollary
economic impacts of increased insurance costs and other factors.
The total current draft updated cost estimate of approximately
$820 million represents an aggregate increase of approximately
$410 million over the 2000 FERC rate case settlement. The 2003
draft cost estimate has not been finalized and is undergoing
review. CYAPC is required to update its decommissioning cost
estimate through a filing with the FERC by no later than July 1,
2004.
Northeast Utilities' (NU) electric operating subsidiaries
collectively own 49% of CYAPC, and their aggregate share of the
estimated increased cost would be approximately $132.3 million.
Their respective shares of the estimated increased costs would be
as follows: The Connecticut Light and Power Company ("CL&P")
($93.2 million), Public Service Company of New Hampshire ("PSNH")
($13.5 million) and Western Massachusetts Electric Company
("WMECO") ($25.7 million).
CYAPC is seeking recovery of additional decommissioning
costs and other damages from Bechtel and, if necessary, its
surety. In pursuing this recovery through pending litigation,
CYAPC is also exploring options to structure an appropriate rate
application to be filed in due course with the FERC, with any
resulting adjustments being charged to its sponsors including
CL&P, PSNH and WMECO. The timing, amount and outcome of these
filings cannot be predicted at this time. CL&P, PSNH and WMECO
would expect in turn to seek recovery of their respective shares
of any allowed increases from ratepayers through appropriate
state and federal rate proceedings.
For further information concerning CYAPC and its
decommissioning estimates, see "Item 1. Business - Nuclear
Generation" in NU's 2002 Annual Report on Form 10-K and "Nuclear
Decommissioning and Plant Closure Costs" in NU's Notes to its
2002 Financial Statements and Part II, Item 1(3) Legal
Proceedings, in NU's Quarterly Report on Form 10Q for the period
ending September 30, 2003.
SIGNATURE PAGE TO FOLLOW
SIGNATURE
Pursuant to the requirements of the Securities and Exchange
Act of 1934, the Registrants have duly caused this report to be
signed on their behalf by the undersigned hereunto duly
authorized.
NORTHEAST UTILITIES
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
WESTERN MASSACHUSETTS ELECTRIC COMPANY
(Registrants)
By: /s/ Randy A. Shoop
Name: Randy A. Shoop
Title: Assistant Treasurer - Finance
THE CONNECTICUT LIGHT AND POWER COMPANY
(Registrant)
By: /s/ Randy A. Shoop
Name: Randy A. Shoop
Title: Treasurer
Date: November 25, 2003