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) December 17, 2003
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Commission
File Registrant; State of Incorporation I.R.S. Employer
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
Not Applicable
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(Former name or former address, if changed since last report)
ITEM 5. OTHER EVENTS.
On December 17, 2003, the Connecticut Department of Public Utility
Control ("DPUC") issued a Final Decision ("Decision") in The Connecticut
Light and Power Company's ("CL&P") four-year rate increase application
("Application") that had been filed on August 1, 2003 pursuant to the
requirements of Connecticut Public Act No. 03-135.
The Application sought to increase CL&P's distribution rate by
$133.6 million beginning January 1, 2004, with additional annual
increases through December 31, 2007, for an aggregate $204.7 million
increase by the end of the four year period. This filing addressed (a)
CL&P's increased costs of service, particularly pension and health
costs, (b) a planned $ 1.0 billion capital program for distribution
improvements through the end of 2007, and (c) the costs of recruiting
and training new electric craft workers. Over the four years, the
proposed rate increases would produce incremental revenues projected
at $675.6 million. The Application also sought a $17 million increase
in CL&P's transmission rates in 2004 and either (a) a mechanism to
track changes in transmission costs incurred under Federal Energy
Regulatory Commission-approved rate tariffs, or (b) annual fixed
adjustments in 2005-2007.
The Decision allows CL&P to increase its distribution rates by
$28.1 million in 2004, $25.1 million in 2005, $11.9 million in 2006
and $7.0 million in 2007, for a total increase of $72.1 million to its
distribution rate by the end of the four-year period. Over the four
years, the Decision would produce $218.5 million of incremental
revenues. The Decision mitigates the rate impact to customers by
allowing CL&P to apply in each year $30 million of Generation Service
Charge over recoveries which CL&P had previously collected. With such
offsets included, the Decision produces $98.5 million of incremental
revenues. The Decision also allowed approximately $900 million of the
requested $1.0 billion capital program.
The Decision also approved an increase to CL&P's transmission rate
for 2004 in the amount of $28.4 million, which includes the requested
increase plus certain additional costs which the DPUC deemed to be
recoverable in the transmission rate rather than in the distribution
rate. The Decision declined to adopt CL&P's proposed tracking
mechanism or to set transmission rates beyond 2004, and thus requires
CL&P to request rate relief for any increase in such rates after 2004.
The Decision also approved a return on equity ("ROE") of 9.85%
(versus the currently allowed 10.3%) and maintained an earnings sharing
mechanism, under which 50% of earnings above the allowed ROE are shared
with ratepayers.
CL&P is continuing to review the Decision.
For further information about this matter, see Northeast Utilities'
and CL&P's Quarterly Report on Form 10-Q for the period ending September
30, 2003, Management's Discussion and Analysis-Financial
Condition-Utility Group Business Development and Capital
Expenditures-Connecticut-CL&P.
[SIGNATURE PAGE TO FOLLOW]
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.
THE CONNECTICUT LIGHT AND POWER COMPANY
(Registrant)
By: /s/ Randy A. Shoop
Name: Randy A. Shoop
Title: Treasurer
Date: December 22, 2003