RNS Rate – Effective June 1, 2014

RNS Rate – Effective June 1, 2014

PTO AC - Rates Working Group – PresentationNEPOOL Reliability Committee / Transmission Committee – Summer MeetingAugust 11 – 12, 2014

Presentation OverviewPresentation Overview

General Rate Overview

● ISO-NE OATT Requirements

● Summary of RNS Rate Change

● Annual Transmission Revenue Requirements

● Regional Forecast Summary

● Annual True-up Summary

Detailed Company Discussions

● PTO Forecast / True-up Detail

Appendix

● Historical RNS Rate Information

● PTF Investment History

● RNS ATRR Reconciliation

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● Schedule 9 – Rate Design● Attachment F – Formula Rate

○ Updated Annually○ Effective June 1○ Reflects:

● Previous calendar year data, plus

● Forecasted revenue requirements, plus

● Annual true-up & associated interest

● PTO AC Annual Informational Filingo Draft Filing posted on ISO-NE’s website on 6/13/14

o Final Filing was submitted to FERC and posted on ISO-NE’s Website on 7/31/14

o Supplemental filing for any subsequent corrections

ISO-NE OATT RequirementsISO-NE OATT Requirements

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($ / kW-year)

$ 85.32$ 7.89($ 0.20)($ 3.21)$ 89.80

RNS Rate at 6/1/13(a)

2014 Forecast True-ups (b)

Load ImpactRNS Rate at 6/1/14

$ 4.48

The primary driver of the 6/1/14 RNS Rate increase is the 2014 forecast.

(a) RNS Rate effective 6/1/13 was revised in October 2013 in a Supplemental Filing(b) 6/1/13 Estimated Rate vs. 2013 Actual of $0.76 + 2013 True-up of ($0.96) = ($0.20)

Summary of RNS Rate ChangeSummary of RNS Rate Change

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Note: The RNS rate above reflects the impact of transmission projects and does not reflect rate reductions associated with 1) Congestion Charges, 2) Daily Reliability Payments and 3) Reliability Must Run Agreements.

(A) (B) (C) (D) = (C) - (B) (E)

PTOATRR

06/01/2013ATRR

06/01/2014

ATRRChange

Incr./(Decr.)

RNS Rate Change

Incr./(Decr.)1 CMP 220.6$ 251.6$ 31.0$ 1.11$ 2 CTMEEC 8.2 9.3 1.1 0.03$ 3 EMERA 47.7 51.3 3.6 0.09$ 4 NGRID 298.3 346.5 48.2 1.79$ 5 NHT 14.1 19.1 5.0 0.21$ 6 NU 681.2 668.4 (12.8) (1.78)$ 7 NSTAR 174.3 240.5 66.2 2.87$ 8 UI 130.6 116.2 (14.4) (0.91)$ 9 VT Transco 123.4 150.5 27.1 1.09$ 10 All Other PTOs 24.1 24.3 0.2 (0.02)$ 11 Total Impact 1,722.5$ 1,877.7$ 155.2$ 4.48$ 12 Average 12CP RNS Load (kW) 20,189,256 20,910,580 721,324

(Columns (B), (C) and (D) in Millions of $)

Annual Transmission Revenue Annual Transmission Revenue Requirements (“ATRR”Requirements (“ATRR”))

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(A) (B) (C) (D)=(C)/Ln 12

PTO

2014 Projected PTF Adds (Including

CWIP)Forecasted

Transmission RR

6/1/14 RNS Rate Impact

($/kW-year)1 CMP $ 127.8 $ 22.0 $ 1.05 2 CTMEEC 0.1 - - 3 EMERA 6.1 0.9 0.04 4 NGRID 364.9 54.7 2.62 5 NHT 1.9 0.4 0.02 6 NU 383.3 59.7 2.85 7 NSTAR 89.9 12.5 0.60 8 UI 15.0 2.9 0.14 9 VT Transco 28.0 5.2 0.25 10 All Other PTOs 5.4 0.7 0.04 11 Total Impact $ 1,022.4 $ 159.0 $ 7.61 12 20,910,580

(Columns (B) and (C) in Millions of $)

2013 Average 12CP RNS Load (kW)

June 1, 2014 RNS RatesJune 1, 2014 RNS RatesRegional Forecast SummaryRegional Forecast Summary

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June 1, 2014 RNS RatesJune 1, 2014 RNS RatesAnnual True-up SummaryAnnual True-up Summary

(A) (B) (C) (D) = (C)-(B) (E) (F) (G)=(F)/Ln 12

PTO

RNS RR‘12 Test Year+‘13 Forecast

(As Billed) 2013 Actual RR

Difference(over)/Under

collection

Intereston

Difference

AnnualTrue-up

AndAssociated

Interest

6/1/14 RNSRate Impact($/kW-year)

1 CMP $ 222.8 $ 226.1 $ 3.3 $ 0.1 $ 3.4 $ 0.16 2 CTMEEC 8.1 8.0 (0.1) - (0.1) - 3 EMERA 51.6 51.0 (0.6) - (0.6) (0.03)4 NGRID 307.3 299.7 (7.6) (0.3) (7.9) (0.38)5 NHT 13.2 19.4 6.2 0.2 6.4 0.31 6 NU 686.7 648.3 (38.4) (1.3) (39.7) (1.90)7 NSTAR 198.6 213.1 14.5 0.5 15.0 0.72 8 UI 126.4 120.0 (6.4) (0.2) (6.6) (0.32)9 VT Transco 127.2 136.1 8.9 0.3 9.2 0.44 10 All Other PTOs 18.7 20.2 1.5 0.1 1.6 0.07 11 Total Impact $ 1,760.6 $ 1,741.9 $ (18.7) $ (0.6) $ (19.3) $ (0.93)12 20,910,580

(Columns (B) through (F) in Millions of $)

2013 Average 12CP RNS Load (kW)

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Detailed Company Discussions

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PTO Representatives to discuss the PTO Representatives to discuss the Forecast and Annual True-upForecast and Annual True-up

Company Representative

CMP: Holley CopelandCTMEEC: Patricia MeekEmera Maine: Andrew McNeallyNGRID: Theresa Guleksen & Jack MartinNHT: Steve GarwoodNU: Allen ScarfoneUI: Alex BoutsioulisVT Transco: Frank Ettori & Hantz Presume

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(A) (B) (C) (D) (E) = (C)*(D) (F) (G) = (E)/ (F)

Project Name RSP ID

EstimatedPTF PlantIn-Service

Annual Carrying Charge

Forecasted PTF Revenue

Requirement2013 12CPRNS Load


1 MPRP PTF various $ 278,209 16.04% $ 44,637 2 MPRP PTF - FCWIP various (176,131) 15.19% (26,755)3 MPRP Total various 102,078

4Lakewood new 115 KV Substation

various 9,496 16.04% 1,523

5Mid-cycle pole replacement

various 3,705 16.04% 594

6OPGW for 115KV Transmission Lines

various 5,586 16.04% 896

7Chester SVC Control Upgrades

various 4,015 16.04% 644

8Other Transmission projects

2,900 16.04% 467

9 Total $ 127,780 $ 22,006 20,910.580 1.05$

(Columns (C ), (E) and (F) in Thousands)

Central Maine Power CompanyCentral Maine Power Company2014 Forecasted PTF Revenue Requirements2014 Forecasted PTF Revenue Requirements

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(A) (B) (C) (D) (E) = (C)*(D) (F) (G) = (E)/ (F)

Project Name RSP ID






1 Fitch Substation various $ 97 8.00% $ 8 2 Total $ 97 $ 8 20,910.580 0.0004$


CTMEECCTMEEC2014 Forecasted PTF Revenue Requirements2014 Forecasted PTF Revenue Requirements

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(A) (B) (C) (D) (E) = (C)*(D) (F) (G) = (E)/ (F)

Project Name RSP ID






1 Downeast Reliability Project 143 $ 482 15.12% $ 73 2 Rebel Hill Switching Station 1031 250 15.12% 38 3 Line 51&93 1154 39 15.12% 6 4 SVC Control Upgrade 1506 4,200 15.12% 635 5 Line 66 (RHS) TBD 1,100 15.12% 166 6 Total $ 6,071 $ 918 20,910.580 0.04$


Emera Maine Electric CompanyEmera Maine Electric Company2014 Forecasted PTF Revenue Requirements2014 Forecasted PTF Revenue Requirements

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(A) (B) (C) (D) (E) = (C)*(D) (F) (G) = (E)/ (F)

Project Name RSP ID






1 Auburn Area Study887 / 919 /

921 $ 91,688 15.46% $ 14,172

2 Central/WesternMA Various 41,707 15.46% 6,447

3 Comerford Substation 674 35,668 15.46% 5,513

4 Salem Harbor Retirement1257 / 1258 /

1259 25,730 15.46% 3,977

5 Line Maintenance Various 19,993 15.46% 3,090

6 NEEWS Various 10,636 15.46% 1,644

7 A-127/B-128 1187 9,645 15.46% 1,491

8 Circuit Breaker Replacements Not listed 7,909 15.46% 1,222

9 Merrimack Valley/ North Shore Various 6,508 15.46% 1,006

10 East Main St Substation 1504 3,290 15.46% 509

11 Other Various 2,341 15.46% 362

12 Highland Park Substation 1510 1,938 15.46% 300

13 Relay Maintenance Not listed 1,839 15.46% 284

14 Conductor Clearance Not listed 1,610 15.46% 249

15 Northern NH Solution 1263 906 15.46% 140

16 Shun Pike Substation Not listed 653 15.46% 101

17 Bellows Falls Substation 680 410 15.46% 63

18 Mt Support Substation 1503 29 15.46% 4

19 Worcester Area Reinforcements 673 / 676 25 15.46% 4

20 Movement in NEEWS CWIP Not listed 102,336 13.82% 14,139

21 Total $ 364,861 $ 54,717 20,910.580 2.62$


National GridNational Grid2014 Forecasted PTF Revenue Requirements2014 Forecasted PTF Revenue Requirements

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(A) (B) (C) (D) (E) = (C)*(D) (F) (G) = (E)/ (F)

Project Name RSP ID






1Protective Relay Upgrade System Phase II NA $ 714 19.70% $ 141

2 369 Line Structural TTR6 NA 497 19.70% 98

3Battery Monitoring System 1-Battery 3-Relay Room NA 258 19.70% 51

4Battery Monitoring System 2-Battery 4-Relay Room NA 180 19.70% 35

5100A Hi-Pot Recepticles in PA Switchyard NA 88 19.70% 17

6 SF6 Leak Repair NA 66 19.70% 13 7 Capital Tools NA 60 19.70% 12 8 Fixed Asset Solutions Project NA 52 19.70% 10

9Compliance System Development Costs NA 13 19.70% 3

10 FERC Module Costs NA 10 19.70% 2 11 Total $ 1,938 $ 382 20,910.580 0.02$


New Hampshire TransmissionNew Hampshire Transmission2014 Forecasted PTF Revenue Requirements2014 Forecasted PTF Revenue Requirements

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(A) (B) (C) (D) (E) = (C)*(D) (F) (G) = (E)/ (F)

Project Name RSP ID






The Connecticut Light & Power Company

1 Line 1990 Structure Replacement 1229 $ 38,947 15.92% $ 6,201

2 Stamford Area Reliability - Underground Cable 1228 37,117 15.92% 5,909

3 Replace Montvill 18X & 19X Transformers N/A 13,779 15.92% 2,194

4 Haddam Neck 345kV Shunt Reactor Project 1400 8,209 15.92% 1,307

5 NEEWS CWIP N/A 75,235 13.98% 10,518

6 NEEWS Projects - CT Various (489) 15.92% (78)

7 Newtown 115kV Tie Breaker 1534 2,170 15.92% 345

8 South Meadow SS Bulk Power System Upgrades 85 808 15.92% 129

9 Other PTF Reliability Projects N/A 83,740 15.92% 13,331

10 Sub-Total CL&P $ 259,516 $ 39,856 20,910.580 1.90$

Public Service Company of New Hampshire

11 Southern Region Reliability Projects Various $ 18,559 17.54% $ 3,255

12 Western Region Reliability Projects Various 11,815 17.54% 2,072

13 Littleton Second Autotransformer Project Various 8,883 17.54% 1,558

14 Central Region Reliability Projects Various 8,334 17.54% 1,462

15 Seacoast Region Reliability Projects Various 6,973 17.54% 1,223


17 Sub-Total PSNH $ 71,287 $ 12,504 20,910.580 0.60$

Western Massachusetts Electric Company

18 Structure Replacement Projects N/A $ 20,412 13.82% $ 2,821

19 NEEWS - Greater Springfield Project Various 2,923 13.82% 404

20 NEEWS CWIP N/A (6,710) 12.80% (859)

21 Pittsfield-Greenfield Area Solution Various 6,853 13.82% 947

22 Agawam BPS 1092 2,867 13.82% 396

23 NGRID Switching Station Tie 1217 2,824 13.82% 390


25 Sub-Total WMECO $ 52,451 $ 7,317 20,910.580 0.35$

26 Total CL&P, PSNH and WMECO $ 383,254 $ 59,677 20,910.580 2.85$


Northeast UtilitiesNortheast Utilities2014 Forecasted PTF Revenue Requirements2014 Forecasted PTF Revenue Requirements

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(A) (B) (C) (D) (E) = (C)*(D) (F) (G) = (E)/ (F)

Project Name RSP ID






NSTAR Electric Company

1Overhead Infrastructure Replacements

N/A $ 42,316 13.91% $ 5,887

2 Boston Network Solutions Various 13,860 13.91% 1,928

3Land Purchase for New Substation - Hyde Park

N/A 11,000 13.91% 1,530

4 SEMA Various 9,240 13.91% 1,285

5Underground Infrastructure Replacements

N/A 8,966 13.91% 1,247

6New Control Houses at K Street, Mystic and Brighton

N/A 2,289 13.91% 318

7 Greater Boston Study Projects 1339 330 13.91% 46

8Bulk Power System Upgrades in Millbury/Bridgewater

N/A 315 13.91% 44

9 Breakers, Disconnects & CCVT's 1394 289 13.91% 40

10Bulk Power System Upgrades in Watham

1065 209 13.91% 29

11 Additional PTF Reliability Projects N/A 1,087 13.91% 151 12 Total NSTAR $ 89,901 $ 12,505 20,910.580 0.60$

13 Total CL&P, PSNH and WMECO $383,254 $ 59,677 2.85$ 14 Total NU $473,155 $ 72,182 3.45$


Northeast Utilities (Continued)Northeast Utilities (Continued)2014 Forecasted PTF Revenue Requirements2014 Forecasted PTF Revenue Requirements

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(A) (B)

Increase / (Decrease) in

PTF RR


RNS Rate ($/kW-year)

1 Actual vs. Forecasted Plant $ (3.0) $ (0.15)2 Actual vs. Forecasted CWIP (1.3) (0.06)3 Change in Cost of Capital (0.1) - 4 Change in Carrying Charge Factor (34.2) (1.64)5 Other (a) 0.2 0.01 6 Interest Income / (Expense) (1.3) (0.06)7 Total 2013 Annual True-up (sum of lines 1 to 6) $ (39.7) $ (1.90)

(PTF RR in Millions of $)

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Northeast UtilitiesNortheast Utilities2013 True-up Analysis2013 True-up Analysis

(a) Includes support revenues/expenses, TOUT revenues, taxes and fees and rental revenues.

(A) (B)


PTF RR


RNS Rate ($/kW-year)

1 Actual vs. Forecasted Plant $ 17.1 $ 0.83 2 Actual vs. Forecasted CWIP - - 3 Change in Cost of Capital - - 4 Change in Carrying Charge Factor 0.2 0.01 5 Other (a) (2.8) (0.14)6 Interest Income / (Expense) 0.5 0.02 7 Total 2013 Annual True-up (sum of lines 1 to 6) $ 15.0 $ 0.72

(PTF RR in Millions of $)

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NSTARNSTAR2013 True-up Analysis2013 True-up Analysis

(a) Includes support revenues/expenses, TOUT revenues, taxes and fees and rental revenues.

(A) (B) (C) (D) (E) = (C)*(D) (F) (G) = (E)/ (F)

Project Name RSP ID






1Pequonnock Disconnect Switch and Bus Upgrade 1348 $ 6,000 19.17% $ 1,150

2 Mill River Fault Duty Mitigation NA 2,400 19.17% 460

3Ash Creek and June Street OCB Replacement NA 2,300 19.17% 441

4 FAC-008 Mitigation NA 1,500 19.17% 288 5 Other Projects <$750k NA 2,800 19.17% 537 6 Total $ 15,000 $ 2,876 20,910.580 0.14$


The United Illuminating CompanyThe United Illuminating Company2014 Forecasted PTF Revenue Requirements2014 Forecasted PTF Revenue Requirements

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(A) (B) (C) (D) (E) = (C)*(D) (F) (G) = (E)/ (F)

Project Name RSP ID






1Line Structure Project (pole replacement program) N/A $ 28,000 18.61% $ 5,210

2 Total $ 28,000 $ 5,210 20,910.580 0.25$


VT Transco LLCVT Transco LLC2014 Forecasted PTF Revenue Requirements2014 Forecasted PTF Revenue Requirements

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Questions ?Questions ?

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Appendix- Appendix- Historical RNS Rate Historical RNS Rate

InformationInformation

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RNS Rates RNS Rates ($/kW-year)($/kW-year)June 1, 1997 – June 1, 2014June 1, 1997 – June 1, 2014

Pre-97 Post-96 Total06/01/05 13.31 5.57 18.8806/01/06 13.38 12.93 26.3106/01/07 12.94 14.96 27.9006/01/08 14.21 29.64 43.8506/01/09 14.29 45.66 59.9506/01/10 15.26 49.57 64.8306/01/11 13.28 50.59 63.8706/01/12 14.54 60.71 75.2506/01/13 16.26 69.06 85.3206/01/14 16.46 73.34 89.80

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RNS Rates RNS Rates June 1, 1997 – June 1, 2014June 1, 1997 – June 1, 2014

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Note: The RNS rates above reflect the impact of transmission projects and do not reflect rate reductions associated with 1) Congestion Charges, 2) Daily Reliability Payments and 3) Reliability Must Run Agreements.

Calendar Year

Ending: Total CMP CTMEECEmera Maine NGRID NHT NU NSTAR UI

VT Transco

12/31/04 2,344.2 152.6 - 20.2 592.5 24.0 779.6 534.8 131.8 108.7

12/31/05 2,562.8 158.9 - 25.9 633.5 24.2 900.1 553.4 132.8 133.9

12/31/06 3,075.9 162.6 - 26.1 695.8 24.5 1,170.7 686.9 135.6 173.6

12/31/07 3,759.2 179.4 - 168.2 816.2 24.4 1,374.8 823.3 136.5 236.4

12/31/08 5,761.0 245.8 - 170.1 855.0 25.0 2,633.5 971.0 461.7 398.9

12/31/09 6,237.6 287.9 - 173.7 977.8 50.3 2,777.4 1,074.6 459.3 436.6

12/31/10 6,666.6 307.5 - 206.7 1,063.9 54.1 2,828.3 1,122.7 467.6 615.8

12/31/11 7,037.5 353.9 51.3 235.3 1,153.7 54.4 2,902.6 1,177.1 481.5 627.7

12/31/12 8,053.8 619.0 51.3 311.9 1,239.1 57.4 3,324.3 1,237.9 553.5 659.4

12/31/13 9,501.1 948.5 51.3 338.2 1,352.6 60.8 3,893.5 1,530.6 611.7 713.9

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PTF Investment HistoryPTF Investment History(In Millions of $)(In Millions of $)

PTF Investment HistoryPTF Investment History(In Millions of $)(In Millions of $)

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1 Total RNS ATRR @ 6/1/13 $ 1,722.5

2 Less: 2013 Forecast 209.6

3 Less: True Up to 2012 Actual (39.6)

4 Sub-total (2012 Test Year Actual) (Line 1-2-3) 1,552.5

5 Update to 2013 Test Year Data 185.5

6 2014 Forecast 159.0

7 2013 True Up (18.7)

8 Interest on 2013 True Up (0.6)

9 Total RNS ATRR @ 6/1/14 (Line 4+5+6+7+8) $ 1,877.7

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RNS ATRR ReconciliationRNS ATRR Reconciliation(In Millions of $)(In Millions of $)

RNS Rate – Effective June 1, 2014

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