File No. 70-9839
UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Application of Northeast Utilities, ) CERTIFICATE PURSUANT TO RULE 24
The Connecticut Light and Power Company, ) UNDER THE PUBLIC UTILITY HOLDING
Western Massachusetts Electric Company, ) COMPANY ACT OF 1935
on Form U-1 )
Pursuant to the requirements of Rules 42, 43, 44, 46(a)and 54 under the
Public Utility Holding Company Act of 1935, Northeast Utilities ("NU"), a
registered holding company, Western Massachusetts Electric Company ("WMECO"),
an electric utility subsidiary of NU and The Connecticut Light and Power
Company ("CL&P"), an electric utility subsidiary of NU, hereby files this
quarterly report as required by the Securities and Exchange Commission's order
authorizing the repurchase of common stock out of capital or unearned surplus
from parent. (HCAR No. 35-27529, May 16, 2002, File No. 70-9839) ("Order").
For the quarter ended December 31, 2002, the following information is
reported pursuant to the Order.
1) A total capitalization calculation to include a breakdown of the common
stock equity account and by percentage for each equity and debt category
for the period ending for each Applicant that indicates the amount of
dividends paid to NU and/or the amount of stock repurchased from NU during
the quarter; total capitalization is to include all short-term debt and
current maturities.
The Connecticut Light and Power Company (CL&P)
--------------------------------------------------------------------------
As of December 31, 2002
--------------------------------------------------------------------------
(Thousands of
Dollars) %
------------- -----
Common shareholders' equity:
Common shares $ 60,352 2.1%
Capital surplus, paid in 326,936 11.3
Retained earnings 308,554 10.7
---------- -----
Total common shareholders' equity 695,842 24.1
Preferred stock 116,200 4.0
Long-term and short-term debt 827,866 28.7
Rate reduction bonds 1,245,728 43.2
$2,885,636 100.0%
========== =====
A common dividend of $15,054,506.74 was declared on November 20, 2002,
and was paid to NU on December 2, 2002. 776,789 shares of common stock
were repurchased for $49,994,140.04 on December 3, 2002.
Western Massachusetts Electric Company (WMECO)
--------------------------------------------------------------------------
As of December 31, 2002
--------------------------------------------------------------------------
(Thousands of
Dollars) %
------------- -----
Common shareholders' equity:
Common shares $ 10,866 2.2%
Capital surplus, paid in 69,618 14.1
Retained earnings 77,476 15.6
-------- -----
Total common shareholders' equity 157,960 31.9
Long-term and short-term debt 194,891 39.3
Rate reduction bonds 142,742 28.8
-------- -----
$495,593 100.0%
======== =====
A common dividend of $4,003,154.13 was declared on December 19, 2002,
and was paid to NU on December 30, 2002.
2) The current senior debt ratings of CL&P and WMECO, including a
representation that such ratings are at or above investment grade.
As of December 31, 2002, the senior debt ratings issued by
Standard and Poor's Corporation and Moody's of CL&P and WMECO are
each BBB+ and A3, respectively, which are investment grade ratings.
3) The Utilities' cash-on-hand both during the quarter and as of
the end of each quarter and a representation as to whether
internal cash funds available during the quarter were sufficient
to fund each company's normal business operations or had to be
supplemented with borrowings from working capital facilities.
CL&P and WMECO represent that during the quarter ended December 31,
2002, internal cash funds available during the quarter, confirmed with
financing activities set forth below, were sufficient to fund each
company's normal business operations.
Internal cash funds available during the quarter were supplemented with
external borrowings for WMECO.
Cash Net cash flows Net cash flows Net cash flows
beginning provided by provided by (used in) Cash end
of period operating investing financing of period
10/1/2002 activities activities activities 12/31/2002
--------- -------------- -------------- -------------- ----------
(Thousands of Dollars)
CL&P $7,827 $83,165 $ 1,853 $(92,686) $159
WMECO 1 7,255 47,114 (54,247) 123
SIGNATURE
Pursuant to the requirements of the Public Utility Holding Company Act
of 1935, the undersigned companies have duly caused this certificate to be
signed on their behalf by the undersigned thereunto duly authorized.
NORTHEAST UTILITIES
THE CONNECTICUT LIGHT AND POWER COMPANY
WESTERN MASSACHUSETTS ELECTRIC COMPANY
/s/ John P. Stack
------------------------------------------
John P. Stack
Vice President - Accounting and Controller
Northeast Utilities
P.O. Box 270
Hartford, CT 06141-0270
February 27, 2003