Eversource Energy (formerly Northeast Utilities) uses Yankee ingenuity, power, and gas to keep customers happy. The largest utility in New England, Eversource operates six electric and gas utilities in Connecticut, Massachusetts, and New Hampshire and serves more than 3.6 million electric and gas customers. It has 3,870 miles of power transmission lines, 52,022 miles electric distribution lines and 6,400 miles of gas distribution lines. Subsidiaries include Connecticut Light and Power, Public Service Company of New Hampshire, and Western Massachusetts Electric. Eversource's Yankee Gas supplies natural gas to 218,000 customers in 71 cities and towns in Connecticut.
The company operates six electric and gas utilities in Connecticut, Massachusetts, and New Hampshire.
Electric utility Connecticut Light and Power Company serves residential, commercial, and industrial customers in parts of Connecticut.
NSTAR Electric serves electric utility residential, commercial, and industrial customers in parts of Massachusetts.
Eversource's electric infrastructure includes about 580 transmission and distribution electric substations. Its underground lines include 12,785 miles of electric distribution, and 677 miles of electric transmission.
Public Service Company of New Hampshire is a regulated electric utility that serves residential, commercial, and industrial customers in parts of New Hampshire and owns generation assets used to serve customers. Sister power utility Western Massachusetts Electric Company serves residential, commercial and industrial customers in parts of western Massachusetts and owns solar generating assets. NSTAR Gas Company is a regulated natural gas utility that serves residential, commercial and industrial customers in parts of Massachusetts.
Gas utility Yankee Gas Services Company serves residential, commercial, and industrial customers in parts of Connecticut. Yankee Gas also owns a 1.2 billion-cu.-ft. LNG facility in Waterbury, Connecticut, which is used primarily to assist it in meeting its supplier-of-last-resort obligations.
Eversource's other subsidiaries include Northeast Utilities Service Company and Hopkinton LNG Corp. NSTAR Gas and Hopkinton own a satellite vaporization plant and above ground cryogenic storage tanks. In addition, Hopkinton owns a liquefaction and vaporization plant.
Sales and Marketing
Residential customers accounted for about 42% of Eversource's total revenues in 2013; commercial customers, 33%.
Eversource's revenues increased by 16% in 2013 due primarily to the addition of NSTAR's operations. During the first quarter of 2013, the former operating subsidiaries of NSTAR contributed $800 million of operating revenues. Eversource also benefited from an increase in transmission revenues, resulting from the recovery of higher transmission expenses and continuing investments in transmission infrastructure; higher retail electric sales (driven by colder winter weather); an increase in firm natural gas distribution revenues (also driven by the colder weather) as well as residential customer growth, and a rise in natural gas conversions.
Net income increased by 49% in 2013 due to higher revenues and the amortization of Rate Reduction Bonds, partially offset by the addition of NSTAR Electric’s amortization.
Eversource reported a $502.3 million improvement in cash flow from operations in 2013, due primarily to the addition of NSTAR, a decrease in storm restoration costs, and the absence in 2013 of customer bill credits and merger-related costs paid in 2012, partially offset by an increase in Pension Plan cash contributions.
Mergers and Acquisitions
Greatly expanding its operations, in 2012 Eversource bought regional rival NSTAR (with 1.1 million power and 300,000 gas customers) for $4.2 billion.
The 2012 acquisition of NSTAR boosted the financial resources of Eversource to pay for planned transmission projects aimed at bringing cleaner power from northern New England and Canada to population centers in southern New England. The "merger of equals" (NSTAR and Eversource) created a major energy player in the US Northeast which serves more than half the total utility customers in New England. NSTAR shareholders hold about 44% of the expanded company.
Eversource projects to make capital expenditures of about $8 billion from 2014 through 2017, out of which it plans to invest $3.5 billion in its electric and natural gas distribution segments and $3.7 billion in its electric transmission segment.