SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
January 22, 2002
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Commission File Number 1-5324
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NORTHEAST UTILITIES
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(Exact name of registrant as specified in its charter)
MASSACHUSETTS 04-2147929
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(State or other jurisdiction of I.R.S. Employer incorporation
organization) or Identification No.)
174 BRUSH HILL AVENUE, WEST SPRINGFIELD,
MASSACHUSETTS 01090-0010
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(Address of principal executive (Zip Code)
offices)
(413) 785-5871
(Registrant's telephone number, including area code)
Not Applicable
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(Former name or former address, if changed since last
report)
Item 5. OTHER EVENTS
On January 22, 2002, Northeast Utilities issued the
following earnings news release for the three and twelve
months ended December 31, 2001.
News
From The Northeast Utilities System
CONTACT: Jeffrey R. Kotkin
Office: (860) 665-5154
NU reports year-end results
HARTFORD, Connecticut, January 22, 2002-Northeast Utilities
(NU) today reported fourth-quarter 2001 earnings of $50.0
million, or $0.38 per share on a fully diluted basis, compared
with a loss of $180.9 million, or $1.26 per share on a fully
diluted basis, in the fourth quarter of 2000.
For the full year of 2001, NU earned $243.5 million, or $1.79 per
share fully diluted, compared with a loss of $28.6 million, or
$0.20 per share fully diluted, in 2000.
Results from both years include a number of significant
nonrecurring items. In 2001, NU recorded an after-tax gain
of $115.6 million, or $0.85 per share, associated with the
sale of the Millstone nuclear generating station to Dominion
Resources, Inc. In 2001, NU also recorded an after-tax mark-
to-market charge of $35.4 million, or $0.26 per share,
associated with the repurchase of 10.1 million NU shares and
a separate charge of $22.4 million, or $0.17 per share,
associated with the adoption of Statement of Financial
Accounting Standards No. 133, "Accounting for Derivative
Instruments and Hedging Activities," as amended. Excluding
those nonrecurring items, NU earned $185.7 million, or $1.37
per share, in 2001.
In 2000, NU recorded extraordinary charges totaling $233.9
million, or $1.65 per share, primarily associated with
industry restructuring in New Hampshire. Excluding those
charges, NU earned $53.0 million, or $0.37 per share, in the
fourth quarter of 2000 and $205.3 million, or $1.45 per
share, during the full year of 2000.
Michael G. Morris, NU chairman, president and chief
executive officer, said NU successfully attained a number of
its long-term goals in 2001. They included the sale of
Millstone Station, the issuance of approximately $2.1
billion of securitization bonds on behalf of its three
regulated electric companies, and the implementation of
industry restructuring in New Hampshire. In large part
because of those steps, NU system debt securities received
multiple rounds of credit upgrades in 2001, ending the year
at their highest levels in decades.
"As a result of several years of hard work, the NU System is
financially strong and stable and ready to embark upon a new
period of growth to the benefit of customers and investors,"
Morris said.
Morris said NU's earnings per share benefited from a lower
share count in 2001 as NU used the proceeds from
restructuring and the Millstone sale to repurchase
approximately 10 percent of its outstanding common shares. NU had
approximately 130 million outstanding shares at the end of
2001 and has repurchased more than 360,000 additional shares
thus far in January 2002.
Offsetting the lower share count, however, were lower
earnings at NU's regulated electric companies. Primarily as
a result of the loss of wholesale revenue from Millstone,
earnings for common shares at The Connecticut Light and
Power Company fell to $104.2 million in 2001 from $140.7
million in 2000. As a result of industry restructuring and
an 11 percent retail rate decrease on May 1, 2001, combined
earnings for common at Public Service Company of New
Hampshire and North Atlantic Energy Corporation totaled
$84.7 million in 2001, compared with $96.1 million in 2000,
excluding the 2000 restructuring charge.
Morris said NU's competitive energy businesses earned $5.3
million in the fourth quarter of 2001, compared with a loss
of $1.3 million in the fourth quarter of 2000, excluding
nonrecurring charges. For the year, NU's competitive energy
businesses earned $5.0 million on revenues of approximately
$3.0 billion, compared with a profit of $13.6 million on
revenues of approximately $1.9 billion in 2000.
Morris said NU continues to project 2002 earnings of between
$1.40 per share and $1.65 per share, not including significant
nonrecurring charges. The primary variable determining where NU
performs within that range will be the performance of its competitive
energy businesses, he said.
NU operates New England's largest electric utility system
with approximately 1.8 million electric customers in
Connecticut, New Hampshire and Massachusetts and 189,000
natural gas distribution customers in Connecticut. NU is
also one of New England's largest energy marketers.
This press release includes forward-looking statements
within the meaning of the Private Securities Litigation
Reform Act of 1995, 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 NU's reports to
the Securities and Exchange Commission.
SIGNATURE
Pursuant to the requirements of the Securities and
Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned
hereunto duly authorized.
NORTHEAST UTILITIES
(registrant)
By: /S/ Randy A. Shoop
Name: Randy A. Shoop
Title: Assistant
Treasurer - Finance
Date: January 23, 2002