Exhibit 99.2
Northeast Utilities and Subsidiaries
------------------------------------
Consolidated Balance Sheets
---------------------------
<Table>
<Caption>
June 30, December 31,
2004 2003
------------ -----------
(Thousands of Dollars)
ASSETS
- ------
Current Assets:
Cash and cash equivalents $ 75,265 $ 37,196
Unrestricted cash from counterparties 104,976 46,496
Restricted cash - LMP costs 123,887 93,630
Special deposits 28,147 79,120
Investments in securitizable assets 190,388 166,465
Receivables, net 648,659 704,893
Unbilled revenues 102,597 125,881
Fuel, materials and supplies, at average cost 154,459 154,076
Derivative assets 365,991 249,117
69,106 63,780
----------- -----------
Prepayments and other 1,863,475 1,720,654
----------- -----------
Property, Plant and Equipment:
Electric utility 5,702,856 5,465,854
Gas utility 763,605 743,990
Competitive energy 902,871 885,953
Other 238,402 221,986
----------- -----------
7,607,734 7,317,783
Less: Accumulated depreciation 2,320,807 2,244,263
----------- -----------
5,286,927 5,073,520
Construction work in progress 354,823 356,396
----------- -----------
5,641,750 5,429,916
----------- -----------
Deferred Debits and Other Assets:
Regulatory assets 2,854,344 2,974,022
Goodwill 319,986 319,986
Purchased intangible assets, net 21,153 22,956
Prepaid pension 358,250 360,706
Other 454,831 428,567
------------ -----------
4,008,564 4,106,237
------------ -----------
Total Assets $11,513,789 $11,256,807
=========== ===========
</Table>
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 Northeast Utilities and Subsidiaries 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
---------------------------
<Table>
<Caption>
June 30, December 31,
2004 2003
------------ -----------
(Thousands of Dollars)
LIABILITIES AND CAPITALIZATION
- ------------------------------
Current Liabilities:
Notes payable to banks $ 5,807 $ 105,000
Long-term debt - current portion 89,114 64,936
Accounts payable 903,122 768,783
Accrued taxes 27,148 51,598
Accrued interest 43,310 41,653
Derivative liabilities 163,050 112,612
Counterparty deposits 104,976 46,496
Other 214,378 203,080
----------- -----------
1,550,905 1,394,158
----------- -----------
Rate Reduction Bonds 1,639,344 1,729,960
----------- -----------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes 1,346,602 1,287,354
Accumulated deferred investment tax credits 101,000 102,652
Deferred contractual obligations 436,837 469,218
Regulatory liabilities 1,239,698 1,164,288
Other 248,818 247,526
----------- -----------
3,372,955 3,271,038
----------- -----------
Capitalization:
Long-Term Debt 2,510,927 2,481,331
----------- -----------
Preferred Stock of Subsidiaries - Non-Redeemable 116,200 116,200
----------- -----------
Common Shareholders' Equity:
Common shares, $5 par value - authorized
225,000,000 shares; 150,578,806 shares issued
and 128,098,320 shares outstanding in 2004 and
150,398,403 shares issued and 127,695,999 shares
outstanding in 2003 752,894 751,992
Capital surplus, paid in 1,110,135 1,108,924
Deferred contribution plan - employee stock
ownership plan (67,274) (73,694)
Retained earnings 840,082 808,932
Accumulated other comprehensive income 46,645 25,991
Treasury stock, 19,573,433 shares in 2004
and 19,518,023 shares in 2003 (359,024) (358,025)
----------- -----------
Common Shareholders' Equity 2,323,458 2,264,120
----------- -----------
Total Capitalization 4,950,585 4,861,651
----------- -----------
Total Liabilities and Capitalization $11,513,789 $11,256,807
=========== ===========
</Table>
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 Northeast Utilities and Subsidiaries 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
---------------------------------
<Table>
<Caption>
Three Months Ended
June 30,
----------------------------
2004 2003
----------- -------------
(Thousands of Dollars,
Except Share Information)
Operating Revenues $ 1,524,666 $ 1,330,038
----------- -----------
Operating Expenses:
Operation -
Fuel, purchased and net interchange power 914,200 767,002
Other 270,737 230,708
Maintenance 67,673 68,280
Depreciation 55,561 50,692
Amortization 28,087 22,890
Amortization of rate reduction bonds 38,294 35,303
Taxes other than income taxes 55,695 51,460
Gain on sale of utility plant - -
----------- -----------
Total operating expenses 1,430,247 1,226,335
----------- -----------
Operating Income 94,419 103,703
Interest Expense:
Interest on long-term debt 33,998 28,546
Interest on rate reduction bonds 25,043 27,364
Other interest 4,097 3,617
----------- -----------
Interest expense, net 63,138 59,527
----------- -----------
Other Income, Net 2,862 754
----------- -----------
Income Before Income Tax Expense 34,143 44,930
Income Tax Expense 9,871 16,672
----------- -----------
Income Before Preferred Dividends of Subsidiaries 24,272 28,258
Preferred Dividends of Subsidiaries 1,389 1,389
----------- -----------
Income Before Cumulative Effect of Accounting Change 22,883 26,869
Cumulative effect of accounting change,
net of tax benefit of $2,553 - -
----------- -----------
Net Income $ 22,883 $ 26,869
=========== ===========
Fully Diluted Earnings Per Common Share:
Income Before Cumulative Effect of Accounting Change $ 0.18 $ 0.21
Cumulative effect of accounting change,
net of tax benefit - -
----------- -----------
Fully Diluted Earnings Per Common Share $ 0.18 $ 0.21
=========== ===========
Fully Diluted Common Shares Outstanding (average) 128,182,645 126,860,208
=========== ===========
</Table>
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 Northeast Utilities and Subsidiaries and is not
a representation, prospectus, or intended for use in connection
with any purchase or sale of securities.
<Table>
<Caption>
Six Months Ended
June 30,
----------------------------
2004 2003
----------- -------------
(Thousands of Dollars,
Except Share Information)
Operating Revenues $ 3,362,953 $ 2,914,221
----------- -----------
Operating Expenses:
Operation -
Fuel, purchased and net interchange power 2,091,511 1,732,605
Other 497,262 419,418
Maintenance 124,884 114,172
Depreciation 110,134 100,165
Amortization 57,378 83,303
Amortization of rate reduction bonds 81,293 74,503
Taxes other than income taxes 133,284 125,434
Gain on sale of utility plant - -
----------- -----------
Total operating expenses 3,095,746 2,649,600
----------- -----------
Operating Income 267,207 264,621
Interest Expense:
Interest on long-term debt 66,736 61,486
Interest on rate reduction bonds 50,738 55,225
Other interest 8,444 6,361
----------- -----------
Interest expense, net 125,918 123,072
----------- -----------
Other Income, Net 4,549 1,330
----------- -----------
Income Before Income Tax Expense 145,838 142,879
Income Tax Expense 52,734 53,027
----------- -----------
Income Before Preferred Dividends of Subsidiaries 93,104 89,852
Preferred Dividends of Subsidiaries 2,779 2,779
----------- -----------
Income Before Cumulative Effect of Accounting Change 90,325 87,073
Cumulative effect of accounting change,
net of tax benefit of $2,553 - -
----------- -----------
Net Income $ 90,325 $ 87,073
=========== ===========
Fully Diluted Earnings Per Common Share:
Income Before Cumulative Effect of Accounting Change $ 0.71 $ 0.69
Cumulative effect of accounting change,
net of tax benefit - -
----------- -----------
Fully Diluted Earnings Per Common Share $ 0.71 $ 0.69
=========== ===========
Fully Diluted Common Shares Outstanding (average) 128,121,751 126,982,903
=========== ===========
</Table>
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 Northeast Utilities and Subsidiaries and is not
a representation, prospectus, or intended for use in connection
with any purchase or sale of securities.
<Table>
<Caption>
Twelve Months Ended
June 30,
----------------------------
2004 2003
----------- -------------
(Thousands of Dollars,
Except Share Information)
Operating Revenues $ 6,517,889 $ 5,707,787
----------- -----------
Operating Expenses:
Operation -
Fuel, purchased and net interchange power 4,094,060 3,409,996
Other 973,543 773,813
Maintenance 242,742 251,899
Depreciation 214,357 200,000
Amortization 165,880 374,438
Amortization of rate reduction bonds 159,961 142,455
Taxes other than income taxes 240,523 223,494
Gain on sale of utility plant - (187,113)
----------- -----------
Total operating expenses 6,091,066 5,188,982
----------- -----------
Operating Income 426,823 518,805
Interest Expense:
Interest on long-term debt 131,509 128,593
Interest on rate reduction bonds 103,873 112,228
Other interest 13,822 16,866
----------- -----------
Interest expense, net 249,204 257,687
----------- -----------
Other Income, Net 2,783 57,502
----------- -----------
Income Before Income Tax Expense 180,402 318,620
Income Tax Expense 50,438 121,378
----------- -----------
Income Before Preferred Dividends of Subsidiaries 129,964 197,242
Preferred Dividends of Subsidiaries 5,559 5,559
----------- -----------
Income Before Cumulative Effect of Accounting Change 124,405 191,683
Cumulative effect of accounting change,
net of tax benefit of $2,553 (4,741) -
----------- -----------
Net Income $ 119,664 $ 191,683
=========== ===========
Fully Diluted Earnings Per Common Share:
Income Before Cumulative Effect of Accounting Change $ 0.98 $ 1.50
Cumulative effect of accounting change,
net of tax benefit (0.04) -
----------- -----------
Fully Diluted Earnings Per Common Share $ 0.94 $ 1.50
=========== ===========
Fully Diluted Common Shares Outstanding (average) 127,824,381 127,910,798
=========== ===========
</Table>
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 Northeast Utilities and Subsidiaries 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 Cash Flows
-------------------------------------
<Table>
<Caption>
Six Months Ended
June 30,
-----------------------
2004 2003
---- ----
(Thousands of Dollars)
Operating Activities:
Income before preferred dividends of subsidiaries $ 93,104 $ 89,852
Adjustments to reconcile to net cash flows
provided by operating activities:
Depreciation 110,134 100,165
Deferred income taxes and investment tax credits, net 34,478 (10,383)
Amortization 57,378 83,303
Amortization of rate reduction bonds 81,293 74,503
Amortization/(deferral) of recoverable energy costs 24,193 (9,441)
Increase/(decrease) in prepaid pension 2,456 (15,606)
Regulatory overrecoveries 8,753 49,183
Other sources of cash 19,270 15,256
Other uses of cash (66,519) (70,895)
Changes in current assets and liabilities:
Restricted cash - LMP costs (30,257) -
Unrestricted cash from counterparties (58,480) (20,458)
Receivables and unbilled revenues, net 79,518 173,596
Fuel, materials and supplies 51 (4,208)
Investments in securitizable assets (23,923) 32,376
Other current assets (23,720) (63,608)
Accounts payable 134,339 (123,235)
Accrued taxes (24,450) (109,987)
Other current liabilities 90,428 21,244
---------- ----------
Net cash flows provided by operating activities 508,046 211,657
---------- ----------
Investing Activities:
Investments in plant:
Electric, gas and other utility plant (300,248) (226,515)
Competitive energy assets (11,329) (7,534)
---------- ----------
Cash flows used for investments in plant (311,577) (234,049)
Buyout/buydown of IPP contracts - (20,437)
Other investment activities 11,450 12,084
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Net cash flows used in investing activities (300,127) (242,402)
---------- ----------
Financing Activities:
Issuance of common shares 2,786 7,463
Repurchase of common shares - (23,209)
Issuance of long-term debt 82,438 194,851
Retirement of rate reduction bonds (90,616) (82,314)
(Decrease)/increase in short-term debt (99,193) 7,000
Reacquisitions and retirements of long-term debt (23,621) (28,688)
Cash dividends on preferred stock of subsidiaries (2,779) (2,779)
Cash dividends on common shares (38,379) (34,886)
Other financing activities (486) (4,343)
---------- ----------
Net cash flows (used in)/provided by financing activities (169,850) 33,095
---------- ----------
Net increase in cash and cash equivalents 38,069 2,350
Cash and cash equivalents - beginning of period 37,196 54,678
---------- ----------
Cash and cash equivalents - end of period $ 75,265 $ 57,028
========== ==========
</Table>
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 Northeast Utilities and Subsidiaries and is not a
representation, prospectus, or intended for use in connection with any
purchase or sale of securities.