Exhibit 99.2
Northeast Utilities and Subsidiaries
------------------------------------
Consolidated Balance Sheets
---------------------------
<Table>
<Caption>
September 30, December 31,
2004 2003
------------- -------------
(Thousands of Dollars)
ASSETS
- ------
Current Assets:
Cash and cash equivalents $ 97,852 $ 36,721
Restricted cash - LMP costs - 93,630
Special deposits 101,688 86,636
Investments in securitizable assets 212,521 166,465
Receivables, net 656,384 704,893
Unbilled revenues 99,408 125,881
Fuel, materials and supplies, at average cost 202,760 154,076
Derivative assets 368,470 249,117
Prepayments and other 80,838 63,780
----------- -----------
1,819,921 1,681,199
----------- -----------
Property, Plant and Equipment:
Electric utility 5,792,149 5,465,854
Gas utility 776,391 743,990
Competitive energy 911,940 885,953
Other 239,663 221,986
----------- -----------
7,720,143 7,317,783
Less: Accumulated depreciation 2,357,086 2,244,263
----------- -----------
5,363,057 5,073,520
Construction work in progress 376,428 356,396
----------- -----------
5,739,485 5,429,916
----------- -----------
Deferred Debits and Other Assets:
Regulatory assets 2,802,912 2,974,022
Goodwill 319,986 319,986
Purchased intangible assets, net 20,251 22,956
Prepaid pension 356,540 360,706
Prior spent nuclear fuel trust 49,110 -
Other 448,043 428,567
------------ -----------
3,996,842 4,106,237
------------ -----------
Total Assets $11,556,248 $11,217,352
=========== ===========
</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>
September 30, December 31,
2004 2003
------------- ------------
(Thousands of Dollars)
LIABILITIES AND CAPITALIZATION
- ------------------------------
Current Liabilities:
Notes payable to banks $ 1,043 $ 105,000
Long-term debt - current portion 88,963 64,936
Accounts payable 704,559 729,328
Accrued taxes 17,907 51,598
Accrued interest 58,560 41,653
Derivative liabilities 212,805 112,612
Counterparty deposits 67,356 46,496
Other 207,878 203,080
----------- -----------
1,359,071 1,354,703
----------- -----------
Rate Reduction Bonds 1,591,944 1,729,960
----------- -----------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes 1,401,756 1,287,354
Accumulated deferred investment tax credits 100,062 102,652
Deferred contractual obligations 423,236 469,218
Regulatory liabilities 1,163,773 1,164,288
Other 244,692 247,526
----------- -----------
3,333,519 3,271,038
----------- -----------
Capitalization:
Long-Term Debt 2,839,694 2,481,331
----------- -----------
Preferred Stock of Subsidiary - Non-Redeemable 116,200 116,200
----------- -----------
Common Shareholders' Equity:
Common shares, $5 par value - authorized
225,000,000 shares; 150,683,698 shares issued
and 128,349,411 shares outstanding in 2004 and
150,398,403 shares issued and 127,695,999 shares
outstanding in 2003 753,418 751,992
Capital surplus, paid in 1,111,152 1,108,924
Deferred contribution plan - employee stock
ownership plan (63,831) (73,694)
Retained earnings 879,153 808,932
Accumulated other comprehensive (loss)/income (5,012) 25,991
Treasury stock, 19,575,940 shares in 2004
and 19,518,023 shares in 2003 (359,060) (358,025)
----------- -----------
Common Shareholders' Equity 2,315,820 2,264,120
----------- -----------
Total Capitalization 5,271,714 4,861,651
----------- -----------
Total Liabilities and Capitalization $11,556,248 $11,217,352
=========== ===========
</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
September 30,
----------------------------
2004 2003
----------- -------------
(Thousands of Dollars,
Except Share Information)
Operating Revenues $ 1,667,985 $ 1,640,117
----------- -----------
Operating Expenses:
Operation -
Fuel, purchased and net interchange power 1,031,540 1,033,663
Other 257,563 222,268
Maintenance 69,194 55,687
Depreciation 57,232 50,879
Amortization 42,679 56,407
Amortization of rate reduction bonds 43,286 40,729
Taxes other than income taxes 55,360 53,169
Gain on sale of utility plant - -
----------- -----------
Total operating expenses 1,556,854 1,512,802
----------- -----------
Operating Income 111,131 127,315
Interest Expense:
Interest on long-term debt 34,940 32,010
Interest on rate reduction bonds 24,446 26,863
Other interest 4,086 4,474
----------- -----------
Interest expense, net 63,472 63,347
----------- -----------
Other Income, Net 8,168 4,678
----------- -----------
Income Before Income Tax Expense 55,827 68,646
Income Tax Expense 15,320 23,277
----------- -----------
Income Before Preferred Dividends of Subsidiary 40,507 45,369
Preferred Dividends of Subsidiary 1,390 1,390
----------- -----------
Income Before Cumulative Effect of Accounting Change 39,117 43,979
Cumulative effect of accounting change,
net of tax benefit of $2,553 - (4,741)
----------- -----------
Net Income $ 39,117 $ 39,238
=========== ===========
Fully Diluted Earnings Per Common Share:
Income Before Cumulative Effect of Accounting Change $ 0.30 $ 0.35
Cumulative effect of accounting change,
net of tax benefit - (0.04)
----------- -----------
Fully Diluted Earnings Per Common Share $ 0.30 $ 0.31
=========== ===========
Fully Diluted Common Shares Outstanding (average) 128,442,701 127,303,973
=========== ===========
</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>
Nine Months Ended
September 30,
----------------------------
2004 2003
----------- -------------
(Thousands of Dollars,
Except Share Information)
Operating Revenues $ 5,030,938 $ 4,554,338
----------- -----------
Operating Expenses:
Operation -
Fuel, purchased and net interchange power 3,123,051 2,766,268
Other 754,825 641,686
Maintenance 194,078 169,859
Depreciation 167,366 151,044
Amortization 100,057 139,710
Amortization of rate reduction bonds 124,579 115,232
Taxes other than income taxes 188,644 178,603
Gain on sale of utility plant - -
----------- -----------
Total operating expenses 4,652,600 4,162,402
----------- -----------
Operating Income 378,338 391,936
Interest Expense:
Interest on long-term debt 101,676 93,496
Interest on rate reduction bonds 75,184 82,088
Other interest 12,530 10,835
----------- -----------
Interest expense, net 189,390 186,419
----------- -----------
Other Income, Net 12,717 6,008
----------- -----------
Income Before Income Tax Expense 201,665 211,525
Income Tax Expense 68,054 76,304
----------- -----------
Income Before Preferred Dividends of Subsidiary 133,611 135,221
Preferred Dividends of Subsidiary 4,169 4,169
----------- -----------
Income Before Cumulative Effect of Accounting Change 129,442 131,052
Cumulative effect of accounting change,
net of tax benefit of $2,553 - (4,741)
----------- -----------
Net Income $ 129,442 $ 126,311
=========== ===========
Fully Diluted Earnings Per Common Share:
Income Before Cumulative Effect of Accounting Change $ 1.01 $ 1.03
Cumulative effect of accounting change,
net of tax benefit - (0.04)
----------- -----------
Fully Diluted Earnings Per Common Share $ 1.01 $ 0.99
=========== ===========
Fully Diluted Common Shares Outstanding (average) 128,231,267 127,086,414
=========== ===========
</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
Septembr 30,
----------------------------
2004 2003
----------- -------------
(Thousands of Dollars,
Except Share Information)
Operating Revenues $ 6,545,757 $ 5,958,539
----------- -----------
Operating Expenses:
Operation -
Fuel, purchased and net interchange power 4,091,937 3,617,177
Other 1,008,839 812,634
Maintenance 256,249 239,315
Depreciation 220,711 199,933
Amortization 152,152 369,522
Amortization of rate reduction bonds 162,518 147,805
Taxes other than income taxes 242,712 229,078
Gain on sale of utility plant - (187,113)
----------- -----------
Total operating expenses 6,135,118 5,428,351
----------- -----------
Operating Income 410,639 530,188
Interest Expense:
Interest on long-term debt 134,439 126,467
Interest on rate reduction bonds 101,455 110,340
Other interest 13,435 16,515
----------- -----------
Interest expense, net 249,329 253,322
----------- -----------
Other Income, Net 6,273 30,121
----------- -----------
Income Before Income Tax Expense 167,583 306,987
Income Tax Expense 42,482 114,341
----------- -----------
Income Before Preferred Dividends of Subsidiary 125,101 192,646
Preferred Dividends of Subsidiary 5,559 5,559
----------- -----------
Income Before Cumulative Effect of Accounting Change 119,542 187,087
Cumulative effect of accounting change,
net of tax benefit of $2,553 - (4,741)
----------- -----------
Net Income $ 119,542 $ 182,346
=========== ===========
Fully Diluted Earnings Per Common Share:
Income Before Cumulative Effect of Accounting Change $ 0.93 $ 1.47
Cumulative effect of accounting change,
net of tax benefit - (0.04)
----------- -----------
Fully Diluted Earnings Per Common Share $ 0.93 $ 1.43
=========== ===========
Fully Diluted Common Shares Outstanding (average) 128,104,660 127,359,186
=========== ===========
</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>
Nine Months Ended
September 30,
----------------------------
2004 2003
----------- -------------
(Thousands of Dollars)
Operating Activities:
Income before preferred dividends of subsidiaries $ 133,611 $ 135,221
Adjustments to reconcile to net cash flows
provided by operating activities:
Depreciation 167,366 151,044
Deferred income taxes and investment tax credits, net 65,133 (55,734)
Amortization 100,057 139,710
Amortization of rate reduction bonds 124,579 115,232
Deferral of recoverable energy costs (13,147) (5,480)
Decrease/(increase) in prepaid pension 4,166 (23,778)
Cumulative effect of accounting change - (4,741)
Regulatory (refunds)/overrecoveries (95,912) 115,846
Other sources of cash 114,312 14,911
Other uses of cash (62,648) (116,431)
Changes in current assets and liabilities:
Restricted cash - LMP costs 93,630 (45,760)
Receivables and unbilled revenues, net 74,982 160,789
Fuel, materials and supplies (48,684) (40,548)
Investments in securitizable assets (46,056) (36,684)
Other current assets (96,206) (5,703)
Accounts payable (24,769) 10,805
Accrued taxes (33,691) (72,851)
Other current liabilities 75,943 24,906
---------- ---------
Net cash flows provided by operating activities 532,666 460,754
---------- ---------
Investing Activities:
Investments in plant:
Electric, gas and other utility plant (450,277) (369,660)
Competitive energy assets (13,954) (12,221)
---------- ---------1
Cash flows used for investments in plant (464,231) (381,881)
Buyout/buydown of IPP contracts - (20,437)
Investment in prior spent nuclear fuel trust (49,110) -
Other investment activities (32,843) 6,582
---------- ---------
Net cash flows used in investing activities (546,184) (395,736)
---------- ---------
Financing Activities:
Issuance of common shares 4,470 9,940
Repurchase of common shares - (23,209)
Issuance of long-term debt 463,113 250,384
Retirement of rate reduction bonds (138,016) (126,374)
Decrease in short-term debt (103,957) (16,000)
Reacquisitions and retirements of long-term debt (86,628) (33,607)
Cash dividends on preferred stock of subsidiaries (4,169) (4,169)
Cash dividends on common shares (59,221) (53,959)
Other financing activities (943) (4,564)
---------- ---------
Net cash flows provided by/(used in) financing activities 74,649 (1,558)
---------- ---------
Net increase in cash and cash equivalents 61,131 63,460
Cash and cash equivalents - beginning of period 36,721 54,678
---------- ---------
Cash and cash equivalents - end of period $ 97,852 $ 118,138
========== =========
</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.