March 26, 1999
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Attention: Filing Desk
Stop 1-4
Washington, DC 20549-1004
RE: The Connecticut Light and Power Company
Western Massachusetts Electric Company
Northeast Nuclear Energy Company
File No. 70-6907
Gentlemen:
Enclosed for filing on behalf of The Connecticut Light and Power Company (CL&P),
Western Massachusetts Electric Company (WMECO), and Northeast Nuclear Energy
Company (NNECO) is a Certificate As To Partial Consummation Of Transaction
under Rule 24 of the Public Utility Holding Company Act of 1935 with respect
to the calculation of the composite return on equity NNECO will use in 1999 for
purposes of billing CL&P and WMECO under the Amended and Restated Millstone
Plant Agreement.
Very truly yours,
/s/ John J. Roman
John J. Roman
Vice President and Controller
Enclosures
UNITED STATES OF AMERICA
before the
SECURITIES AND EXCHANGE COMMISSION
- ----------------------------------------------
)
In the Matter of )
)
THE CONNECTICUT LIGHT AND POWER COMPANY )
NORTHEAST NUCLEAR ENERGY COMPANY )
Berlin, Connecticut )
) CERTIFICATE AS TO
WESTERN MASSACHUSETTS ELECTRIC COMPANY ) PARTIAL CONSUMMATION
West Springfield, Massachusetts ) OF TRANSACTION
)
)
File No. 70-6907 )
)
(Public Utility Holding Company Act )
of 1935) )
)
- ----------------------------------------------
Pursuant to the Public Utility Holding Company Act of 1935 and Rule
24(a) thereunder, The Connecticut Light and Power Company (CL&P), Western
Massachusetts Electric Company (WMECO) and Northeast Nuclear Energy Company
(NNECO), referred to collectively herein as the Companies, hereby submit this
certification in accordance with the terms and conditions of and for the
purposes represented by the Application-Declaration (the Application) filed
by the Companies in this proceeding, and of the order dated December 6, 1983
of the Commission with respect thereto (the Order).
In accordance with the terms of the Application and Order, the Companies
hereby submit Exhibit 1, Computation of NNECO's 1999 Equity Return.
Dated: March 26, 1999
THE CONNECTICUT LIGHT AND POWER COMPANY
WESTERN MASSACHUSETTS ELECTRIC COMPANY
NORTHEAST NUCLEAR ENERGY COMPANY
By
/s/ John J. Roman
John J. Roman
Their Vice President and Controller
Exhibit 1
COMPUTATION OF NNECO'S 1999 EQUITY RETURN
Effective January 1, 1999 the composite return on equity (ROE)that NNECO will
use in its billing to CL&P and WMECO for the calendar year 1999 is as follows:
Composite
ROE* Ownership ROE
CL&P 10.3% x 81% = 8.34%
WMECO 12.0% x 19% = 2.28%
------
TOTAL 10.62%
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*These ROE rates are the ROEs authorized by the respective retail rate
regulators in the rate decisions most recently decided. Abstracts from those
decisions are attached hereto as Exhibit 1-a (CL&P)and Exhibit 1-b (WMECO).
Exhibit 1-a
Docket No. 98-01-02 Phase 2
Given the significant decline in interest costs over the last 12 months,
the Department has made a reasonable adjustment of 40 basis points from the
allowed return on equity of 10.7% set in Docket No. 97-05-12.
The Department approved capitalization, below, is based on Schedule D-1.0,
Revised. An allowed return on equity of 10.3% enables the Company to earn an
overall return on rate base of 8.05%.
Exhibit 1-b
D.P.U. 91-290
or rate design (id., p. 1).
The Company and the Attorney General agree that for purposes of
calculating the Allowance for Funds Used During Construction and inter-
and intra-class cost allocations in this case, a rate of return on common
equity of 12.00 percent shall be used (id., para. 2.3).
The Attorney General and WMECO stipulate that if the merger with Public
Service of New Hampshire is completed, the Company will serve on the Department
and the Attorney General all reports of direct and allocated administrative
and general, operations and maintenance, and Northeast Utility Service Company
charges billed to each of the Northeast Utility subsidiaries, when those
reports are filed with the Connecticut Department of Public Utility Control.
Pursuant to the stipulation, the Company will also serve on the Attorney
General and the Department all orders by the Connecticut Department of Public
Utility Control regarding the ratemaking adjustments to reflect the system-wide
apportionment of off-system capacity sales. In addition, the Attorney General
and WMECO agree to notify the Department and Attorney General in advance of any
proposed changes to the sharing agreement or the capacity transfer agreements
that govern certain power transactions among the Northeast Utility system
companies (i.d., para. 2.6).
