northheast utillities 2008_Financial_Review

David R. McHaleSenior Vice President and Chief Financial OfficerTelephone: (860) 665-5601

Randy A. ShoopVice President and TreasurerTelephone: (860) 665-3258

Jeffrey R. KotkinVice President, Investor RelationsTelephone: (860) 665-5154Fax: (860) 665-3847E-mail: [email protected]

Patricia C. CosgelAssistant TreasurerTelephone: (860) 665-5058

Aaron J. CullenManager – Corporate FinanceTelephone: (860) 665-5784

Barbara F. NiemanInvestor Communications SpecialistTelephone: (860) 665-3249E-mail: [email protected]

Inquiries relating to this documentshould be directed to:Investor RelationsNortheast UtilitiesP. O. Box 270Hartford, CT 06141-0270

www.nu.com

This document presents historical

information pertaining to Northeast

Utilities and subsidiaries frequently

requested by security analysts and

members of the financial community.

Some of the the data contained herein

are estimates that may be subject to

significant change and are qualified in

their entirety by reference to the 10-Ks,

10-Qs and 8-Ks filed by NU and its sub-

sidiaries. Data are provided for general

information purposes only and are not

intended for use in the solicitation of

offers to buy any securities of the NU

system companies.

FinancialReview 2008F

inan

cial

Rev

iew

2008

HP10081.2M

Charles W. ShiveryChairman of the Board, Presidentand Chief Executive Officer

David R. McHaleSenior Vice Presidentand Chief Financial Officer

Leon J. OlivierExecutive Vice Presidentand Chief Operating Officer

These materials provide updated

operating and financial information on

Northeast Utilities (NU) consolidated

and each of the largest operating

subsidiaries of the NU System.

The tables and charts, which are

updated through June 30, 2008,

supplement the 2007 NU System

annual reports.

On the cover:

NU’s Bethel-Norwalk 345-kV

Project strengthens the

reliability of the power grid

in New England.

2007 2006 2005 2004 2003

��

Regulated Sales-kWh (millions)Residential 15,051 14,652 15,518 14,866 14,824Commercial 15,103 14,886 15,234 14,710 14,471Industrial 5,635 5,750 6,023 6,274 6,223Streetlighting and Railroads 353 332 348 348 348

Subtotal - Retail 36,142 35,620 37,123 36,198 35,866Wholesale 3,855 8,777 4,856 5,787 6,813

Total 39,997 44,397 41,979 41,985 42,679

Revenues (thousands)Residential $2,558,547 $2,409,414 $2,080,395 $1,707,434 $1,669,199Commercial 1,735,923 1,977,444 1,727,278 1,429,608 1,411,881Industrial 412,381 589,742 577,834 513,999 514,076Streetlighting and Railroads 45,880 52,853 47,769 41,976 44,977Competitive - 583,829 1,212,176 857,355 660,145

Subtotal - Retail $4,752,731 $5,613,282 $5,645,452 $4,550,372 $4,300,278Gas 514,185 453,894 503,303 407,812 361,470Wholesale 418,667 408,798 1,055,902 2,066,857 2,089,568

Total Electric and Gas $5,685,583 $6,475,974 $7,204,657 $7,025,041 $6,751,316Other and Eliminations 136,643 401,713 141,569 (544,357) (854,242)

Total $5,822,226 $6,877,687 $7,346,226 $6,480,684 $5,897,074

2007 2006 2005 2004 2003

��

Sales-kWh (millions)Residential 10,336 10,053 10,760 10,305 10,359Commercial 10,128 9,995 10,307 9,922 9,829Industrial 3,264 3,306 3,501 3,623 3,630Streetlighting and Railroads 304 284 298 298 298

Subtotal - Retail 24,032 23,638 24,866 24,148 24,116Wholesale 3,563 3,749 4,179 5,375 5,885

Total 27,595 27,387 29,045 29,523 30,001

Revenues (thousands)Residential $1,854,404 $1,709,700 $1,440,142 $1,155,492 $1,151,707Commercial 1,182,196 1,405,281 1,170,038 939,579 960,678Industrial 208,087 380,479 327,598 275,730 290,526Streetlighting and Railroads 35,370 42,099 37,054 31,897 35,358

Subtotal - Retail $3,280,057 $3,537,559 $2,974,832 $2,402,698 $2,438,269Wholesale 347,514 318,958 344,650 295,833 322,955Miscellaneous 54,246 123,294 146,938 134,393 (56,700)

Total $3,681,817 $3,979,811 $3,466,420 $2,832,924 $2,704,524

1.

Sales and Revenues

OPERATIONS i n f o r m a t i o n

2007 2006 2005 2004 2003

��

Sales-kWh (millions)Residential 1,539 1,511 1,596 1,546 1,521Commercial 1,589 1,574 1,616 1,583 1,567Industrial 842 862 910 935 909Streetlighting and Railroads 25 25 25 25 26

Subtotal - Retail 3,995 3,972 4,147 4,089 4,023Wholesale 178 189 176 169 255

Total 4,173 4,161 4,323 4,258 4,278

Revenues (thousands)Residential $246,526 $232,197 $190,023 $167,275 $165,871Commercial 140,531 132,336 133,356 128,425 133,122Industrial 48,036 43,131 59,937 62,347 63,990Streetlighting and Railroads 4,492 5,025 5,030 4,782 4,817

Subtotal - Retail $439,585 $412,689 $388,346 $362,829 $367,800Wholesale 20,131 17,421 19,064 8,646 14,347Miscellaneous 5,029 1,399 1,983 7,754 9,031

Total $464,745 $431,509 $409,393 $379,229 $391,178

2007 2006 2005 2004 2003

�� !��

Sales-kWh (millions)Residential 3,176 3,087 3,162 3,015 2,944Commercial 3,403 3,342 3,342 3,235 3,100Industrial 1,528 1,582 1,612 1,716 1,684

Streetlighting and Railroads 24 23 24 25 23

Subtotal - Retail 8,131 8,034 8,140 7,991 7,751 Wholesale 105 985 501 242 674

Total 8,236 9,019 8,641 8,233 8,425

Revenues (thousands)Residential $457,616 $467,517 $450,230 $384,667 $351,622Commercial 413,196 439,828 423,884 361,603 318,081Industrial 156,258 166,132 190,299 175,921 159,560Streetlighting and Railroads 6,018 5,729 5,685 5,297 4,801

Subtotal - Retail $1,033,088 $1,079,206 $1,070,098 $927,488 $834,064Wholesale 25,030 52,255 34,688 19,712 38,622Miscellaneous 24,954 9,439 23,641 21,549 15,500

Total $1,083,072 $1,140,900 $1,128,427 $968,749 $888,186

2.

Sales and Revenues

(Thousands of Dollars, except Share Information and Percentages)12 Months Ended

June 30, 2008 2007 2006 2005 2004

Operating Revenues $5,572,248 $5,822,226 $6,877,687 $7,346,226 $6,480,684

Operating Income/(Loss) $537,331 $539,481 $235,971 $(252,153) $290,498

Net Income-Transmission $113,189 $82,475 $59,822 $41,101 $28,221Net Income-Dist./Gen. 153,913 146,171 197,464 122,298 127,334Net Income-NU Enterprises 8,409 11,732 211,282 (398,155) (15,078)Net Income-Other (36,434) 6,105 2,010 (18,732) (23,889)Net Income/(Loss) - Total $239,077 $246,483 $470,578 $(253,488) $116,588

Common Share Data: Basic Earnings/(Loss) Per Share $1.54 $1.59 $3.06 $(1.93) $0.91 Book Value Per Share (end of period) $18.90 $18.79 $18.14 $15.85 $17.80 Average Shares Outstanding 155,180,462 154,759,727 153,767,527 131,638,953 128,245,860 Dividends Per Share $0.80 $0.78 $0.73 $0.68 $0.63 Market Price - High $32.83 $33.53 $28.81 $21.79 $20.10 - Low $24.01 $26.93 $19.24 $17.61 $17.30 - End $25.53 $31.31 $28.16 $19.69 $18.85

Capitalization, end of period (includes current maturities)

Long-Term Debt $4,144,574 57.6 % $3,637,885 54.6 % $2,965,312 50.4 % $3,049,961 54.5 % $2,880,733 54.4 % Preferred Stock 116,200 1.6 116,200 1.7 116,200 2.0 116,200 2.1 116,200 2.2 Common Equity 2,939,456 40.8 2,913,835 43.7 2,798,179 47.6 2,429,244 43.4 2,296,711 43.4 Total Capitalization $7,200,230 100.0 % $6,667,920 100.0 % $5,879,691 100.0 % $5,595,405 100.0 % $5,293,644 100.0 %

Short-Term Debt $87,000 $79,000 -$ $32,000 $180,000

Rate Reduction Bonds $802,259 $917,436 $1,177,158 $1,350,502 $1,546,490

Moody's/Standard & Poor's/Fitch Securities Ratings

NU Sr. Unsecured Notes Baa2/BBB-/BBB Baa2/BBB-/BBB Baa2/BBB-/BBB Baa2/BBB-/BBB Baa1/BBB/BBB

3.

Northeast Utilities Consolidated

HISTORICAL FINANCIAL i n f o r m a t i o n

First Second Third Fourth Year-EndQuarter Quarter Quarter Quarter Outstanding Shares

2008 $0.2000 $0.2000 $0.2125 $0.2125 N/A2007 $0.1875 $0.1875 $0.2000 $0.2000 155,079,7702006 $0.1750 $0.1750 $0.1875 $0.1875 154,233,1412005 $0.1625 $0.1625 $0.1750 $0.1750 153,225,8922004 $0.1500 $0.1500 $0.1625 $0.1625 129,034,4422003 $0.1375 $0.1375 $0.1500 $0.1500 127,695,9992002 $0.1250 $0.1250 $0.1375 $0.1375 127,562,0312001 $0.1000 $0.1000 $0.1250 $0.1250 130,132,1362000 $0.1000 $0.1000 $0.1000 $0.1000 143,820,4051999 No dividend No dividend No dividend $0.1000 131,870,284

NU Quarterly Dividends Per Share

(Thousands of Dollars, except Percentages)12 Months Ended

June 30, 2008 2007 2006 2005 2004

Operating Revenues $3,475,126 $3,681,817 $3,979,811 $3,466,420 $2,832,924

Operating Income $321,076 $284,542 $236,070 $202,049 $215,624

Net Income-Transmission $93,840 $68,241 $48,100 $30,712 $19,766Net Income-Distribution 71,267 65,323 151,907 64,133 68,250Net Income-Total $165,107 $133,564 $200,007 $94,845 $88,016

Capitalization, end of period

Long-Term Debt $2,330,694 53.2 % $2,028,546 50.9 % $1,519,440 52.7 % $1,258,883 51.8 % $1,052,891 52.9 % Preferred Stock 116,200 2.7 116,200 2.9 116,200 4.0 116,200 4.8 116,200 5.8 Common Equity 1,932,257 44.1 1,842,251 46.2 1,251,029 43.3 1,055,517 43.4 822,292 41.3 Total Capitalization $4,379,151 100.0 % $3,986,997 100.0 % $2,886,669 100.0 % $2,430,600 100.0 % $1,991,383 100.0 %

Short-Term Debt $52,325 $38,825 $258,925 $26,825 $105,025

Rate Reduction Bonds $464,746 $548,686 $743,899 $856,479 $995,233


Bond A3/BBB+/A- A3/BBB+/A- A3/BBB+/A- A3/BBB+/A- A2/A-/A- Unsecured Debt Baa1/BBB-/BBB+ Baa1/BBB-/BBB+ Baa1/BBB-/BBB+ Baa1/BBB-/BBB+ A3/BBB/BBB+ Preferred Stock Baa3/BB+/BBB Baa3/BB+/BBB Baa3/BB+/BBB Baa3/BB+/BBB Baa2/BBB-/BBB

The Connecticut Light and Power Company

4.

Utility PlantAs of December 31, 2007 As of December 31, 2006

Accumulated Accumulated Depreciation Depreciation

Utility and Net Utility and NetDescription Plant Amortization Utility Plant Plant Amortization Utility Plant

Transmission Plant $1,339,756 $368,318 $971,438 $1,098,900 $326,553 $772,347Distribution Plant 3,559,319 911,379 2,647,940 3,458,300 933,973 2,524,327

Total Utility Plant $4,899,075 $1,279,697 $3,619,378 $4,557,200 $1,260,526 $3,296,674

Rate Base

End of Period End of Period End of Period End of Period12/31/07 12/31/06 12/31/05 12/31/04

Distribution Rate Base $1,894,000 $1,792,000 $1,393,000 $1,212,000

Transmission Rate Base (a) $1,257,300 $841,100 $424,100 $297,600

Capital Expenditures

12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended12/31/07 12/31/06 12/31/05 12/31/04

Distribution Capital Expenditures $283,258 $210,271 $254,626 $254,800

Transmission Capital Expenditures $660,590 $415,574 $215,308 $132,747

(a) Includes 50% CWIP on southwest CT projects beginning 2/1/06.


5.

C O N N E C T I C U T

NEWMILFORD

SHER

MAN

WASHINGTON

KENT

SHARON

SALISBURY

NORTHCANAAN

CANAAN

CORNWALL GOSHEN

NORFOLK

WARRENLITCHFIELD

COLEBROOK

WINSTED

TORRINGTON

MORRIS

HARWINTON

NEWHARTFORD

BARK-HAMSTED

HART-LAND

GRANBY

CANTON

SIMSBURY

BRIDGE-WATER

ROXBURYWOODBURY

BETHLEHEMWATERTOWN

THOM-ASTON

PLYMOUTH

WOLCOTT

BRISTOL PLAIN-VILLE

SOUTHINGTON

NEWBRITAIN

MIDDLETOWN

BERLIN

MERIDENMIDDLE-

FIELD

CROMWELL

ROCKYHILL

NEW-INGTON

FARMINGTON

AVON

BURLINGTON

WESTHARTFORD

BLOOM-FIELD

WETHERS-FIELD

EASTHARTFORDHART-

FORD

SUFFIELD

EASTGRANBY WINDSOR

LOCKS

BEACONFALLS

WOOD-BRIDGE

SEYMOUR

NORTHHAVEN

HAMDEN

NORTHBRANFORD

ANSONIA

REDDINGRIDGEFIELD

DANBURY

BETHEL

NEWTOWN

MONROE

NEWFAIRFIELD

BROOK-FIELD

SOUTHBURY

GREENWICH

STAMFORD

NEWCANAAN

DARIEN

NORWALK

WILTON

WESTON

FAIRFIELD

BRIDGE-PORT

EASTON TRUMBULL

STRAT-FORD

SHELTON

MIDDLE-BURY

WATERBURY

NAUGATUCKWALLINGFORD

CHESHIRE

PROSPECT

OXFORD

MILFORD

ORANGE

NEW HAVEN

WEST-HAVEN

EAST

HAVE

N

BETHANY

BRANFORD

DURHAM

WESTPORT

DERBYMADISON

GUILFORD

EASTHADDAM

COLCHESTER

MARL-BOROUGH

HEBRON

CLINTONWEST-BROOK

OLDSAYBROOK

KILLING-WORTH

CHESTER

DEEPRIVER ESSEX

HADDAM

PORTLAND

LYME

OLDLYME

ANDOVER

SALEM

LEDYARD

EASTLYME

WATERFORDGROTON

LEBANON

PRESTON

COLUMBIAGLASTONBURY

EASTHAMPTON

MONTVILLE

STONINGTON

NORTHSTONINGTON

VOLU

NTOW

N

NORWICH

GRISWOLD

LISB

ON

STER

LING

SCOT-LAND

CANTERBURY

WINDHAMPLAINFIELD

FRANKLIN

BOZRAH

SPRAGUE

BOLTONMANCHESTER

SOMERS

ELLINGTON

VERNON

TOLLAND

COVENTRY

STAFFORD UNIONWOODSTOCK

WILLINGTON ASHFORD

EASTFORD

POMFRET

KILLINGLY

MANSFIELD CHAPLINBROOKLYN

HAMPTON

THOMPSON

PUTNAM

ENFIELD

WINDSOR

SOUTHWINDSOR

EASTWINDSOR

CONNECTICUT

The Connecticut Light and Power

Company (CL&P), Connecticut’s

largest electric utility, provides service

in 149 cities and towns across the state

to approximately 1.2 million customers.

This figure includes 1.1 million

residential customers, 103,000

commercial customers, and 6,300

industrial customers.

Raymond P. NecciPresident and Chief Operating Officer


(Thousands of Dollars, except Percentages)12 Months Ended

June 30, 2008 2007 2006 2005 2004

Operating Revenues $1,121,547 $1,083,072 $1,140,900 $1,128,427 $968,749


Net Income-Transmission $14,986 $10,720 $8,331 $7,881 $6,754Net Income- Distribution/Generation 44,616 43,714 26,992 33,858 39,887Net Income-Total $59,602 $54,434 $35,323 $41,739 $46,641


Long-Term Debt $686,753 54.0 % $576,997 51.8 % $507,099 52.0 % $507,086 52.8 % $457,190 53.4 % Common Equity 584,147 46.0 537,867 48.2 467,562 48.0 452,504 47.2 399,699 46.6 Total Capitalization $1,270,900 100.0 % $1,114,864 100.0 % $974,661 100.0 % $959,590 100.0 % $856,889 100.0 %

Short-Term Debt -$ $21,300 $36,500 $15,900 $30,400



Bond Baa1/BBB+/BBB+ Baa1/BBB+/BBB+ Baa1/BBB/BBB+ A3/BBB/BBB+ A3/BBB+/BBB+

Public Service Company of New Hampshire

6.

Utility Plant As of December 31, 2007 As of December 31, 2006Accumulated Accumulated Depreciation Depreciation


Transmission Plant $290,980 $88,773 $202,207 $244,674 $76,779 $167,895Distribution Plant 1,128,729 316,985 811,744 1,077,035 330,968 746,067Generation Plant 590,511 332,159 258,352 577,231 316,017 261,214

Total Utility Plant $2,010,220 $737,917 $1,272,303 $1,898,940 $723,764 $1,175,176

Rate Base


Distribution & Generation Rate Base $908,000 $838,000 $736,000 $712,000

Transmission Rate Base $171,300 $134,400 $114,900 $97,300



Distribution & Generation Capital Expenditures $123,649 $109,596 $143,664 $120,627



7.

NEWHAMPSHIRE

DIXVILLE

STEWARTSTOWN

COLEBROOK

COLUMBIAERVING'S

LOCATION

STRA

WENTWORTH'SLOCATION

ERROLMILLSFIELD

CLARKSVILLE

SECONDCOLLEGEGRANT

GILMANTON& ATKINSON

ACADEMY GRANT

ODELL

DIX'SGRANT

DUMMER

STARK

WATERVILLE ALBANY

HALE'SLOCATION

BARTLETT

HADLEY'SPURCHASE

CHATHAM

JACKSON

LINCOLN

LIVERMORE

STFORESTREG'N

THORNTON

FRANCONIA

WOODSTOCK CONWAY

TAMWORTH

CAMPTON

ELLSWORTH

RUMNEY

EASTON

BETHLEHEMCRAWFORD'S

PURCHASE

BENTON

HAVERHILL

LANDAFF

PIERMONT

WARREN

WENTWORTH

OXFORD

LYME

DORCHESTER

BERLINLANCASTER

GORHAMRANDOLPHJEFFERSON

WHITEFIELDDALTON

MONROE

BATH

LYMANLISBON SUGAR

HILL

LITTLETON

SANDWICH

EATON

SHELBURNE

BEAN'SPURCHASE

SUCCESSKILKENNY

MEREDITHNEW

HAMPTON

PLYMOUTHHOLDERNESS

ASHLAND

ALEXANDRIA

GRAFTON

ORANGE

ENFIELD

LEBANON

CANAAN

GROTON

HANOVER

DANBURY

BRISTOL

BRIDGEWA

GILMANTON

TIL

ANDOVER

NEW LONDON

CORNISH

CROYDON

SUTTON

FRANKLIN

GILFORDPLAINFIELD

SUNAPEE

SPRINGFIELD

HILL

WINDSOR

ANTRIM

STODDARD

LEMSTER

WASHINGTON

BRADFORD

WARNER

HENNIKER

HOPKINTON

WEAREDEE INGDUMBARTON

SALISBURY

WEBSTERNEWBURY

NEWPORT

UNITYGOSHEN

CONCORD CHICESTER

ALLENSTOWN

PEMBROKE

EPSOM

LOUDON

CANTERBURY

BOSCA

HILLSBOROUGH

BARNSTEADARMINGTON

ALTON

BROOKFIELD

CHARLES-TOWN

MARLOW

ACWORTH

GILSUM

SULLIVNELSON

ALSTEAD

LANGDON

WALPOLE

SURRY BENN-INGTON

NORTHFIELD

CANDIA

LACONIA

ATKINSON

NEWTON

TON INGTON

LITCH-FIELD

MERRIMACK

H U D S O N

LONDON-DERRY

NASHUA

HOLLIS

WINDHAM

VILLE

HEMP-STEADDERRY

AMHERST

BEDFORDDAN-

PELHAM

KINGSTON

EASTKINGS- KENS-

SALEM

BRENTWOODFREMONT

CHESTEREXETER NORTH

GREEN-LAND

NEWFIELDSEPPINGRAYMOND

AUBURNMANCHESTER HAMPTON

RYE

MOUTH

THAM

HAMPTON

PORTS-

PLAIS-TOW

HAMPTON

SEA-BROOK

SANDOWN

SOUTH

NEWMARKE

DURHAM

FRANCES-TOWN

PETER-BOROUGH

HANCOCK

DUBLIN

HARRISVILLE

MARLBOROUGH

ROXBURY

SWANZEY

KEENEWESTMORELAND

CHESTERFIELD BOROUGH

RICHMOND

TROY

FITZWILLIAM

JAFFNEY

RINDGE

WINCHESTER

IPSWICHVILLE

SHARON

MASON

HINSDALE

AN

GREENFIELD

L

GREEN-

YNDE-

NEW

TEMPLEWILTON

BROOK-LINE

MILFORD

MOUNTVERNON

NEW BOSTON

BOW

HOOKSETT

GOFFSTOWN

MADBURY

BARRINGTONNORTHWOOD

LEENOTTINGHAMDEERFIELD

ROCHESTERSTRAPITTSFIELD

WEN

NEW-INGTON

HAMPTONFALLS

STRA

TFORD

DOVER

DURHAM MIL

F

SOMERS-WORTH

ROLLINS-FORD

TONWILMOT

SANBORNTONGRANTHAM

NEWTON

WOLFEBORO WAKE-FIELD

MIDDLETON

LIVERMORE

HART'SLOCA

TER

TONBOROGH

OSSIPEE

FREEDOM

EFFINGHAM

TION

TUFTON-BORO

MOUL

MILAN

CAMBRIDGE

NORTH-UMBERLAND

CARROLL

TFORD

THOMPSON& MESERVE'S

PURCHASE

MARTIN'SLOCATIONGREEN'SGRANT

BEAN'SGRANTTEA

LOW & BURBANK'SGRANT

CUTT'SGRANT

SARGENT'SPURCHASE

T

MADISON

CLAREMONT

Public Service Company of New

Hampshire (PSNH), New

Hampshire’s largest electric

utility, provides service in

211 towns and cities throughout

the state to approximately 492,000

customers. This figure includes

418,000 residential customers,

71,000 commercial customers, and

3,400 industrial customers.

Gary A. LongPresident and Chief Operating Officer


8.

Western Massachusetts Electric Company(Thousands of Dollars, except Percentages)

12 Months Ended June 30, 2008 2007 2006 2005 2004

Operating Revenues $442,798 $464,745 $431,509 $409,393 $379,229


Net Income-Transmission $6,158 $5,109 $4,636 $3,945 $3,014

Net Income-Distribution 15,508 18,495 11,008 11,140 9,359Net Income-Total $21,666 $23,604 $15,644 $15,085 $12,373


Long-Term Debt $305,038 53.8 % $303,872 55.5 % $261,777 54.5 % $259,487 59.1 % $207,684 55.8 % Common Equity 262,269 46.2 243,250 44.5 218,966 45.5 179,336 40.9 164,472 44.2 Total Capitalization $567,307 100.0 % $547,122 100.0 % $480,743 100.0 % $438,823 100.0 % $372,156 100.0 %

Short-Term Debt $3,300 $14,900 $30,800 $14,900 $40,900



Unsecured Debt Baa2/BBB/BBB+ Baa2/BBB/BBB+ Baa2/BBB/BBB+ Baa2/BBB/BBB+ A3/BBB+/BBB+



Transmission Plant $132,446 $52,973 $79,473 $123,100 $46,674 $76,426Distribution Plant 596,266 152,770 443,496 580,600 154,425 426,175

Total Utility Plant $728,712 $205,743 $522,969 $703,700 $201,099 $502,601

Rate Base


Distribution Rate Base $363,000 $278,000 $239,000 N/A

Transmission Rate Base $74,500 $70,600 $65,800 $53,600



Distribution Capital Expenditures $34,006 $29,998 $32,448 $32,089



9.

MASSACHUSETTS

MOUNT

WAS

HING

TON

EGREMONT

SANDISFIELD

TOLLAND

ALFO

RD

STOC

KBRI

DGE

MONTEREY

TYRINGHAM

OTIS

GRANVILLE

RUSSELL

BLANDFORD

BECKET

WASHINGTON

E

MIDDLEFIELDLENOX

RICHMOND

NEW MARLBORO

SHEFFIELD

WES

TST

OCKB

RIDG

E

MONTGOMERY

GREAT BARRINGTON

CHESTER

PITTSFIELD

HINSDALE

DALT

ON

PERUWORTHINGTON

CUMMINGTON

CONWAY

WHATELYGOSHEN

WILLIAMSBURG

NORTHAMPTON

EASTHAMPTON

WES

THAM

PTON

SOUTHAMPTON

DEERFIELD

CHESTERFIELD

HUNT

INGT

ON

HANC

OCK

LANESBORO

WILLIAMSTOWN

CHESHIRE

ADAMS

NORTH ADAMS

CLARKSBURG MONROE

FLORIDA

WINDSOR

HAWLEY

CHARLEMONT

ROWE HEATH

BUCKLAND

ASHFIELD

COLRAIN

SHELBURNESAVOYNEW

ASHFORD

PLAINFIELD

WESTFIELD

LEYDEN

BERNARDSTON

AMHERSTHADLEY

HATFIELD

HOLY

OKE

SOUTHAMPTON SOUT

HHA

DLEY

CHICOPEE

GRANBY

GILLNORTHFIELD

MONTAGUE

LEVERETT

GREENFIE

LDSU

NDER

LAND

PELHAM

LUDLOW

BELCHERTOWN

PALMER

NEW SALEM

ORANGE

SHUTESBURY

WENDELL

ERVING

WARWICK

SOUTHWICK AG LONG-MEADOW

SPRINGFIELD

EASTLONG-MEADOW HAMPDEN

MONSON

WESTSPRING-

FIELDWILBRAHAMSPRINGFIELD

WARELEE

AWAM

Western Massachusetts Electric

Company (WMECO), western

Massachusetts’ largest electric

utility, provides service in

59 communities throughout the

western part of the state to

approximately 206,000 customers.

This figure includes 188,000


commercial customers, and


Rodney O. PowellPresident and Chief Operating Officer




Total Utility Plant $977,545 $277,424 $700,121 $858,961 $271,498 $587,463

Rate Base


Total Rate Base $602,000 $483,000 $462,000 $438,000



Total Capital Expenditures $63,737 $89,911 $78,549 $62,151

12 Months Ended

June 30, 2008 2007 2006 2005 2004

Gas Sales-Firm and Non-firm (mcf-millions) Residential 13,133 13,742 11,743 13,634 13,528 Commercial 15,112 15,080 13,237 14,949 14,733 Industrial 21,525 21,008 20,271 19,243 19,039 Other - - - - -

Total 49,770 49,830 45,251 47,826 47,300

Gas Revenues Residential $246,402 $238,489 $212,097 $237,308 $200,295 Commercial 156,391 148,145 127,830 141,144 115,975 Industrial 129,591 117,321 104,669 106,365 81,276 Other 11,994 7,736 6,971 14,812 5,570 Total Gas $544,378 $511,691 $451,567 $499,629 $403,116 Miscellaneous 2,594 2,494 2,327 3,674 4,696 Total $546,972 $514,185 $453,894 $503,303 $407,812

Operating Revenues $546,972 $514,185 $453,894 $503,303 $407,812 Operating Income $61,741 $52,329 $30,182 $39,549 $34,107 Net Income $26,286 $22,603 $11,872 $17,290 $14,085

Capitalization (includes current maturities) Long-Term Debt $307,343 $311,327 $269,987 $273,622 $242,865 Total Common Equity (a) 617,972 598,576 542,310 503,412 517,752

Total Capitalization $925,315 $909,903 $812,297 $777,034 $760,617

Short-Term Debt $32,500 $63,300 $80,000 $74,000 $59,600

(a) Includes equity associated with acquisition premium, which was approximately $287.6 million in all periods shown.

(Thousands of Dollars, except Gas Sales)

Yankee Gas Services Company

10.


11.

YANKEE GAS

NEWMILFORD

SHERMAN

WASHINGTON

KENT

SHARON

SALISBURY

NORTHCANAAN

CANAAN

CORNWALL GOSHEN

NORFOLK

WARRENLITCHFIELD

COLEBROOK

WINSTED

TORRINGTON

MORRIS

HARWINTON

NEWHARTFORD

BARK-HAMSTED

HART-LAND

GRANBY

CANTON

SIMSBURY

BRIDGE-WATER

ROXBURYWOODBURY

BETHLEHEMWATERTOWN

THOM-ASTON

PLYMOUTH

WOLCOTT

BRISTOL PLAIN-VILLE

SOUTHINGTON

NEWBRITAIN

MIDDLETOWN

BERLIN

MERIDENMIDDLE-

FIELD

CROMWELL

ROCKYHILL

NEW-INGTON

FARMINGTON

AVON

BURLINGTON

WESTHARTFORD

BLOOM-FIELD

WETHERS-FIELD

EASTHARTFORDHART-

FORD

SUFFIELD

EASTGRANBY WINDSOR

LOCKS

BEACONFALLS

WOOD-BRIDGE

SEYMOUR

NORTHHAVEN

HAMDEN

NORTHBRANFORD

ANSONIA

REDDINGRIDGEFIELD

DANBURY

BETHEL

NEWTOWN

MONROE

NEWFAIRFIELD

BROOK-FIELD

SOUTHBURY

GREENWICH

STAMFORD

NEWCANAAN

DARIEN

NORWALK

WILTON

WESTON

FAIRFIELD

BRIDGE-PORT

EASTON TRUMBULL

STRAT-FORD

SHELTON

MIDDLE-BURY

WATERBURY

NAUGATUCK

WALLINGFORD

CHESHIRE

PROSPECT

OXFORD

MILFORD

ORANGE

NEW HAVEN

WEST-HAVEN

EAST

HAVE

N

BETHANY

BRANFORD

DURHAM

WESTPORT

DERBYMADISON

GUILFORD

EASTHADDAM

COLCHESTER

MARL-BOROUGH

HEBRON

CLINTONWEST-BROOK

OLDSAYBROOK

KILLING-WORTH

CHESTER

DEEPRIVER ESSEX

HADDAM

PORTLAND

LYME

OLDLYME

ANDOVER

SALEM

LEDYARD

EASTLYME

WATERFORDGROTON

LEBANON

PRESTON

COLUMBIAGLASTONBURY

EASTHAMPTON

MONTVILLE

STONINGTON

NORTHSTONINGTON

VOLU

NTOW

N

NORWICH

GRISWOLD

LISB

ON

STER

LING

SCOT-LAND

CANTERBURY

PLAINFIELD

FRANKLIN

BOZRAH

SPRAGUE

BOLTONMANCHESTER

SOMERS

ELLINGTON

VERNON

TOLLAND

COVENTRY

STAFFORD UNIONWOODSTOCK

WILLINGTON ASHFORD

EASTFORD

POMFRET

KILLINGLY

MANSFIELD CHAPLINBROOKLYN

HAMPTON

THOMPSON

PUTNAM

ENFIELD

WINDSOR

SOUTHWINDSOR

EASTWINDSOR

WINDHAM

Yankee Gas Services Company

is the largest natural gas

distribution company in

Connecticut, and provides

service in 71 towns

throughout the state to

approximately 204,000 customers.

This figure includes 180,000


commercial customers, and



Raymond P. NecciPresident and Chief Operating Officer

��

Principal Amount First GeneralAmount Outstanding at Date Call Call

Issue Issued June 30, 2008 Issued Maturity Date (a) Price (b)

1994 Series D 7.875% $140,000,000 $139,845,000 10/12/94 10/01/24 No Call N/A2004 Series A 4.800% 150,000,000 150,000,000 09/15/04 09/15/14 Callable Make-Whole2004 Series B 5.750% 130,000,000 130,000,000 09/15/04 09/15/34 Callable Make-Whole2005 Series A 5.000% 100,000,000 100,000,000 04/07/05 04/01/15 Callable Make-Whole2005 Series B 5.625% 100,000,000 100,000,000 04/07/05 04/01/35 Callable Make-Whole2006 Series A 6.350% 250,000,000 250,000,000 06/07/06 06/01/36 Callable Make-Whole2007 Series A 5.375% 150,000,000 150,000,000 03/27/07 03/01/17 Callable Make-Whole2007 Series B 5.750% 150,000,000 150,000,000 03/27/07 03/01/37 Callable Make-Whole2007 Series C 5.750% 100,000,000 100,000,000 09/17/07 09/01/17 Callable Make-Whole2007 Series D 6.375% 100,000,000 100,000,000 09/17/07 09/01/37 Callable Make-Whole2008 Series A 5.650% 300,000,000 300,000,000 05/27/08 05/01/18 Callable Make-WholeSubtotal $1,669,845,000Less: Due Within One Year - Total $1,669,845,000

��



Seabrook Pollution Control Bonds 1986 Series 5.90% $15,400,000 $15,400,000 12/23/86 11/01/16 11/01/05 101.00Seabrook Pollution Control Bonds 1988 Series A 5.90% 10,000,000 10,000,000 10/27/88 08/01/18 10/01/08 102.00Seabrook Pollution Control Bonds 1992 Series A 5.85% 21,000,000 21,000,000 12/17/92 12/01/22 10/01/08 102.00Pollution Control Revenue Bonds 1993 Series A 5.85% 245,500,000 245,500,000 9/22/93 09/01/28 10/01/08 102.00Pollution Control Revenue Bonds 1993 Series B 5.95% 70,000,000 70,000,000 9/22/93 09/01/28 10/01/08 102.00Pollution Control Revenue Bonds 1996 A Series (variable rate) (c) 62,000,000 62,000,000 5/21/96 05/01/31 10/01/08 100.00Fees and Interest Due for Spent Nuclear Fuel Disposal Costs 241,432,829Subtotal $665,332,829Less: Due Within One Year - Unamortized Premiums and Discounts, Net (4,484,231)Total Long-Term Debt (not including current maturities) $2,330,693,598

(a) A First Call Date refers to the initial date at which CL&P has the right to redeem all or part of a Series at its option, at a premium to par or subject to a make-whole redemption. Please refer to a prospectus for additional details.(b) As of June 30, 2008, or at the First Call Date.(c) On October 1, 2008, the bonds were subject to mandatory tender and as of that time were held by the company in a flexible interest rate mode.


12.

FUNDING i n f o r m a t i o n

��

AmountAmount Par Outstanding at Date Call

Issue Issued Value June 30, 2008 Issued Price

Not Subject to Mandatory Redemption

3.90% Series $8,000,000 $50 par $8,000,000 09/13/49 $50.504.50% Series 5,200,000 $50 par 5,200,000 05/01/56 50.75 4.96% Series 5,000,000 $50 par 5,000,000 10/29/58 50.50 4.50% Series 8,000,000 $50 par 8,000,000 03/01/63 50.50 5.28% Series 10,000,000 $50 par 10,000,000 04/20/67 51.43 6.56% Series 10,000,000 $50 par 10,000,000 02/08/68 51.44 $1.90 Series 8,195,600 $50 stated value 8,195,600 04/24/47 52.50 $2.00 Series 16,804,400 $50 stated value 16,804,400 04/30/47 54.00 $2.20 Series 10,000,000 $50 stated value 10,000,000 04/20/49 52.50 $2.04 Series 5,000,000 $50 par 5,000,000 11/22/49 52.00 $2.06 Series E 10,000,000 $50 par 10,000,000 06/17/54 51.00 $2.09 Series F 5,000,000 $50 par 5,000,000 11/15/55 51.00 $3.24 Series G 15,000,000 $50 par 15,000,000 01/24/68 51.84 Total Preferred Stock $116,200,000

Western Massachusetts Electric Company� ��



Pollution Control Revenue Bonds 1993 A Series 5.85% $53,800,000 $53,800,000 09/22/93 09/01/28 10/01/08 102.00Senior Series A Notes 5.00% 55,000,000 55,000,000 09/30/03 09/01/13 Callable Make-WholeSenior Series B Notes 5.90% 50,000,000 50,000,000 09/23/04 09/15/34 Callable Make-WholeSenior Series C Notes 5.24% 50,000,000 50,000,000 08/11/05 08/01/15 Callable Make-WholeSenior Series D Notes 6.70% 40,000,000 40,000,000 08/17/07 08/15/37 Callable Make-WholeFees and Interest Due for Spent Nuclear Fuel Disposal Costs 56,755,963Subtotal $305,555,963Less: Due Within One Year - Unamortized Premiums and Discounts, Net (518,175)Total Long-Term Debt (not including current maturities) $305,037,788

(a) A First Call Date refers to the initial date at which WMECO has the right to redeem all or part of a Series at its option, at a premium to par or subject to a make-whole redemption. Please refer to a prospectus for additional details.(b) As of the First Call Date.


13.

��



2004 Series L 5.25% $50,000,000 $50,000,000 07/22/04 07/15/14 Callable Make-Whole2005 Series M 5.60% 50,000,000 50,000,000 10/05/05 10/05/35 Callable Make-Whole2007 Series N 6.15% 70,000,000 70,000,000 09/24/07 09/01/17 Callable Make-Whole2008 Series O 6.00% 110,000,000 110,000,000 05/27/08 05/01/18 Callable Make-WholeSubtotal $280,000,000Less: Due Within One Year - Total $280,000,000

��

Principal Amount First General Amount Outstanding at Date Call Call


Pollution Control Revenue BondsSeries A Variable Rate $89,250,000 $89,250,000 12/19/01 05/01/21 Callable 100.00Series B 4.75% 89,250,000 89,250,000 12/19/01 05/01/21 06/21/13 102.00Series C 5.45% 108,985,000 108,985,000 12/19/01 05/01/21 05/01/12 101.00Series D 6.00% 75,000,000 75,000,000 12/17/92 05/01/21 05/01/08 102.00Series E 6.00% 44,800,000 44,800,000 12/15/93 05/01/21 05/01/08 102.00Subtotal $407,285,000Less: Due Within One Year - Unamortized Premiums and Discounts, Net (532,299) Total Long-Term Debt (not including current maturities) $686,752,701

(a) A First Call Date refers to the initial date at which PSNH has the right to redeem all or part of a Series at its option, at a premium to par or subject to a make-whole redemption. Please refer to a prospectus for additional details.(b) As of June 30, 2008, or at the First Call Date.

14.

FUNDING i n f o r m a t i o n


15.

y p��


Issue Issued June 30, 2008 Issued Maturity Date (a) Price

NU ParentSenior Series A, 7.25% $263,000,000 $263,000,000 04/04/02 04/01/12 Callable Make-WholeChange in Fair Value (b) 1,840,208Senior Series C, 5.65% 250,000,000 250,000,000 06/05/08 06/01/13 Callable Make-WholeSubtotal $514,840,208Less: Due Within One Year - Unamortized Premiums and Discounts, Net (93,417) Total Long-Term Debt $514,746,791

Yankee Gas Services CompanyRevolver loan - variable rate $45,000,000 $45,000,000 06/29/07 12/17/09 N/A N/ASeries B, 8.48% 20,000,000 20,000,000 04/01/92 03/01/22 Callable Make-WholeSeries E, 7.19% 30,000,000 17,142,858 04/01/97 04/01/12 Callable Make-WholeSeries F, 6.20% 50,000,000 50,000,000 01/25/99 04/01/09 Callable Make-WholeSeries G, 4.80% 75,000,000 75,000,000 01/30/04 01/01/14 Callable Make-WholeSeries H, 5.26% 50,000,000 50,000,000 11/15/04 11/01/19 Callable Make-WholeSeries I, 5.35% 50,000,000 50,000,000 07/21/05 07/15/35 Callable Make-WholePurchase Price Adjustment Due To Merger 199,547Subtotal $307,342,405Less: Due Within One Year 54,285,714Total Long-Term Debt $253,056,691

(a) A First Call Date refers to the initial date at which the company has the right to redeem all or part of a Series at its option, at a premium to par or subject to a make-whole redemption. Please refer to a prospectus for additional details.(b) Change in fair value represents the change in fair value of the NU Parent 7.25% Senior Series A Notes and related fixed to floating interest rate swap entered into to swap the related interest payments. The change in fair value was recorded as an adjustment to long-term debt with an equal adjustment to derivative assets.

Other System Companies

CL&P A-5, 6.21%Date as of 12/31 Principal Balance

2008 378,195,3432009 195,586,9752010 0

PSNH A-3, 6.48%Date as of 12/31 Principal Balance

2008 235,139,1222009 188,113,3192010 138,246,7342011 85,367,7582012 29,294,4152013 0

WMECO A-1, 6.53%Date as of 12/31 Principal Balance

2008 73,176,3522009 58,735,3052010 43,325,0132011 26,891,8562012 9,351,8122013 0



Western Massachusetts Electric Company

16.

Expected Rate Reduction Bond Amortization Schedules

David R. McHaleSenior Vice President and Chief Financial OfficerTelephone: (860) 665-5601

Randy A. ShoopVice President and TreasurerTelephone: (860) 665-3258

Jeffrey R. KotkinVice President, Investor RelationsTelephone: (860) 665-5154Fax: (860) 665-3847E-mail: [email protected]

Patricia C. CosgelAssistant TreasurerTelephone: (860) 665-5058

Aaron J. CullenManager – Corporate FinanceTelephone: (860) 665-5784

Barbara F. NiemanInvestor Communications SpecialistTelephone: (860) 665-3249E-mail: [email protected]

Inquiries relating to this documentshould be directed to:Investor RelationsNortheast UtilitiesP. O. Box 270Hartford, CT 06141-0270

www.nu.com

This document presents historical

information pertaining to Northeast

Utilities and subsidiaries frequently

requested by security analysts and

members of the financial community.

Some of the the data contained herein

are estimates that may be subject to

significant change and are qualified in

their entirety by reference to the 10-Ks,

10-Qs and 8-Ks filed by NU and its sub-

sidiaries. Data are provided for general

information purposes only and are not

intended for use in the solicitation of

offers to buy any securities of the NU

system companies.

FinancialReview 2008

Fin

anci

alR

evie

w20

08

HP10081.2M

northheast utillities 2008_Financial_Review

Economy & Finance

operating revenues

revenues thousands

net incomeloss total

subtotal retail23

subtotal retail35

total electric

saleskwh millions1

saleskwh millions3