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					WALL STREET UTILITY GROUP




              Northeast Utilities
               March 26, 2002
    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 the forward-looking statements because of factors
    such as competition and industry restructuring, changes in
    economic conditions, changes in historical weather patterns,
    changes in laws, regulations or regulatory policies,
    developments in legal or public policy doctrines,
    technological developments and other presently unknown or
    unforeseen factors. Other risk factors are detailed from time to
    time in the company’s SEC reports.




2
    Principal Topics For Today


     Status of growth initiatives

     Key regulatory and judicial proceedings

     Competitive businesses

     2001 in review and 2002 forecast




3
    Initiative 1: Resolve Critical Transmission
    Constraints in Southwest Connecticut

       Surplus Generation           • The SW-CT area is a
       Adequate Generation            reliability concern as
       Marginal Conditions            well as a congestion
                                      point.
       Deficient
                                    • FERC has identified
                                      SW-CT and Boston as
                                      significant congestion
                                      areas as well as the NY
                                      Central East interface




4
    What Has NU Proposed?
                                    • Expanding the 345 kV
                                      transmission system into
                                      SW-CT
                                      • Phase 1, Bethel to
                                        Norwalk, 2004 ($120mm)*
                                      • Phase 2, Norwalk to
                                        Middletown, 2006 ($400mm)
                                    • Replacing the CT - Long
                                      Island Cable (2003) ($80mm)*
                                    • Building a new DC Cable
                                      to Long Island (2004)



    * Now under regulatory review
5
        Initiative 2: Significantly Enlarge Yankee Gas
        Asset Base
                                                     Yankee Gas Asset Base
                    $700                                                                   $645         $659
                                                                              $583
                    $600
                                                                $498
    Millions of $




                    $500                $406         $434
                           $382
                    $400
                    $300
                    $200                                               $125
                                                         $103                        $78          $73
                    $100          $22          $48                                                             $49

                      $0
                            2000        2001          2002      2003          2004         2005         2006
                                                      Est.       Est.          Est.          Est.        Est.
                           Total Net Utility Plant           Annual Net Investment in Plant
6
    Initiative 3: Convert Competitive Energy
    Revenue Growth Into Profits
    Revenues in
     $ Millions

    $4,000

                                                         $3,900
    $3,000
                                            $3,000
    $2,000


    $1,000                         $1,900


                    $37    $649
        $0
                  1998    1999    2000      2001     2002 (Est.)
7
    Key State Regulatory Items

      DPUC considering opening docket on low
      CL&P Standard Offer Rate
      DPUC also reviewing use of Millstone
      proceeds
      NHPUC reviewing recovery of purchased
      power deferrals
      Seabrook sale dockets would begin this
      summer, assuming successful bid process
      No rate cases until second half of 2003
8
    Con Ed Litigation Proceeding in NY Federal
    Court

      Discovery mostly complete
      Motions this spring
      Trial may start in summer
      NU seeking lost premium and other costs
      Con Ed seeking relief of its merger obligation
        Claim for 82 percent of $1.57 billion of synergy
        savings is not supportable

9
     Overview of Competitive Businesses

       Continued expansion of retail/wholesale
       electric business
       Enhancement of talent (trading, accounting,
       billing)
       Profitable energy services businesses with
       significant expansion
       CL&P Standard Offer Rate under review
       Niche acquisitions (Niagara Mohawk Energy
       Marketing, E.S. Boulos)
       Potential acquisition of generation
10
     Wholesale Electricity Remains NU’s Largest
     Source of Competitive Revenue
           2002 Estimated Revenues = $3.9 Billion
                  $200M       $200M
          $200M
     $200M


                                  $3,100 Million




         Wholesale Electric   Wholesale Gas        Retail Gas
11       Retail Electric      Services
     Wholesale Electric Customers Cover the
     Northeast                     Central Maine &
                                                           Bangor Hydro standard
                                                           offer: $90 million revenue
     Over 30 municipal systems in                          3/02 through 2/03
     New York, New England;
                      VT
     $900 million revenue                           ME     NStar default service:
     beginning 01/00 with longest                          $85 million revenue 1/02
     contracts through 2011               VT               through 12/02 (customer
                                                           since 1998 with over $900
                                            NH
                                    NY                     million total revenue to date)
                                            MA
                                          CT
                                               RI         National Grid USA default
                                                          service: $250 million
                                     NJ                   revenue 6/01 through
                                                          10/02
       PSE&G, Jersey Central,
       Atlantic City Elec.                CL&P Standard Offer
       $475 million revenue               $450 - $500 million
       8/02 through 7/03                  annually through 12/31/03
12
     Other Competitive Businesses
     Retail Electric:      9,000 customers
                           325 MW of load

     Retail Natural Gas:   5,300 customers

     Owned Generation: 1,110 MW of pumped storage (NGC)
                       158 MW of conventional hydro (NGC)
                       147 MW of coal (HWP)
                       21 MW of ICU (NGC)

     Energy Services:      Generation management
                           Generation and high voltage construction
                             and maintenance
                           Commercial/industrial energy and process
                             upgrades
                           Performance contracting (government &
                             private sector)
13
     2001 Year in Review: Earnings For Common
     $300.0
                 $243.5
     $250.0
                          $185.7

     $200.0
                                   $104.2
     $150.0
                                            $93.8



                                                     $84.7

                                                             $69.1
     $100.0




                                                                                         $25.8

                                                                                                 $26.3
                                                                              $15.8
                                                                      $14.6




                                                                                                         ($17.0)
      $50.0




                                                                                                                   $5.0
       $0.0

     ($50.0)
                 NU                CL&P             PSNH/            WMECO             Yankee Competitive
               Consol.                              NAEC                               Energy Businesses
                                                    Reported                          Operating
14
     2002 Outlook
     Range remains $1.40 to $1.65 per share, as
     announced in October
       - Principal variable is outcome of the CL&P Standard
         Offer docket

     Positives Since October         Negatives Since October
     • Lower interest rates        • Extraordinarily warm weather
     • Multiple credit rating      • Extremely dry winter
       upgrades                      curtailing conventional hydro
                                     production
     • Expected pension credit
       revised upward by           • Yankee Gas rate cut of
       $3 million                    $4 million

15
     NU’s Conservative Recapitalization Has
     Boosted Ratings and Financial Flexibility

        Ratings As Of 1/1/01                Ratings Today

         Moody’s/S&P/Fitch                Moody’s/S&P/Fitch


     NU Notes       Ba1/BB+/BB-       NU Notes*        Baa1/BBB/BBB

     CL&P Bonds     Baa3/BBB-/BBB-    CL&P Bonds       A2/A-/A-

     PSNH Bonds     Ba1/BBB-/BB       PSNH Bonds       A3/BBB+/BBB

     WMECO Notes Ba1/BB+/BB+          WMECO Notes A3/BBB+BBB+

     NGC Bonds      N/A               NGC Bonds        Baa2/BBB-/BBB
                                                       (BBB- long-term)

     *Refinancing of $263 million of notes under way
16
      NU Will Continue Increasing Its Investment in
      Plant
                         Investment in Plant, Excluding Nuclear Fuel
                  $700
                  $600
                                                                            $111
                  $500
                                                                             $25
                  $400                                                      $103
     $ Millions




                  $300                                                      $110
                                                             $444
                  $200                             $353
                                        $279                                $244
                  $100    $217

                    $0
                          1998      1999          2000       2001      2002 Est.
                         CL&P    PSNH     Yankee Energy   WMECO     Other   Total
17
     Dividend Increases and Share Repurchases
     Remain a Focus

       Annual dividend growth targeted at 10 percent
         Pay out up to 50 percent of regulated subsidiary
         earnings
       10 percent of shares repurchased in 2001
       Another 850,000 shares repurchased in 2002
       Board authorization to buy back another
       9.8 million shares by 6/30/03
       Parent liquidity may be recharged by year-end
       by Seabrook sale
18
     Summary

      Healthy regulated businesses with rising
      capital investments in T&D
      Growing unregulated businesses that need a
      better bottom line
      High degree of financial flexibility and liquidity
      Rising dividend and ongoing share
      repurchases
      Balanced growth initiatives

19

				
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