rns rate – effective june 1, 2013

RNS Rate – Effective June 1, 2013

PTO AC - Rates Working Group – PresentationNEPOOL Reliability Committee / Transmission Committee – Summer MeetingJuly 22 – 23, 2013

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

● RNS Rate History

● PTF Investment History

● RNS ATRR Reconciliation

Slide

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10 – 20

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25 – 26

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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 6/14/13

o Final Filing will be submitted to FERC and posted on ISO-NE’s Website on 7/31/13

o Supplemental filing for any subsequent corrections

ISO-NE OATT RequirementsISO-NE OATT Requirements

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($ / kW-year)

$ 75.25$ 11.08$ 0.66($ 0.04)$86.95

RNS Rate at 6/1/12 2013 Forecast True-ups (a)

Load ImpactRNS Rate at 6/1/13

$ 11.70

The primary driver of the 6/1/13 RNS Rate increase is the 2013 forecast.

(a) 2012 annual true-up ($0.92) + variance between 2011 and 2012 true-ups $1.58 = $0.66

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)=(D)/Ln 12, Col. (C)

PTOATRR

06/01/2012ATRR

06/01/2013

ATRRChange

Incr./(Decr.)

RNS Rate Change

Incr./(Decr.)1 BHE 47.8$ 47.7$ (0.1)$ -$ 2 CMP 147.2 220.6 73.4 3.63 3 CTMEEC 7.2 8.2 1.0 0.05 4 NGRID 273.5 307.1 33.6 1.66 5 NHT 10.2 14.1 3.9 0.19 6 NU 601.4 681.2 79.8 3.94 7 NSTAR 172.9 200.9 28.0 1.38 8 UI 114.4 130.6 16.2 0.80 9 VT Transco 127.2 123.4 (3.8) (0.19) 10 All Other PTOs 16.7 21.6 4.9 $0.2411 Total Impact 1,518.5$ 1,755.4$ 236.9$ 11.70$ 12 Average 12CP RNS Load (kW) 20,178,343 20,189,256 10,913

(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

2013 Projected PTF Adds (Including

CWIP)Forecasted

Transmission RR

6/1/13 RNS Rate Impact

($/kW-year)1 BHE $ 29.1 $ 4.4 $ 0.22 2 CMP 278.5 42.5 2.11 3 CTMEEC 2.6 0.2 0.01 4 NGRID 435.6 67.2 3.33 5 NHT 4.1 0.8 0.04 6 NU 314.2 58.7 2.91 7 NSTAR 171.3 23.8 1.18 8 UI 61.7 12.4 0.61 9 VT Transco 57.6 10.0 0.49 10 All Other PTOs 24.0 3.7 0.18 11 Total Impact $ 1,378.7 $ 223.7 $ 11.08 12 20,189,256

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

2012 Average 12CP RNS Load (kW)

June 1, 2013 RNS RatesJune 1, 2013 RNS RatesRegional Forecast SummaryRegional Forecast Summary

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June 1, 2013 RNS RatesJune 1, 2013 RNS RatesAnnual True-up SummaryAnnual True-up Summary

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

PTO

RNS RR‘11 Test Year+‘12 Forecast

(As Billed)

2012 Actual RR‘11 Test Year+ ‘12 Forecast

Difference(over)/Under

collection

Intereston

Difference

AnnualTrue-up

AndAssociated

Interest

6/1/13 RNSRate Impact($/kW-year)

1 BHE $ 50.8 $ 47.1 $ (3.7) $ (0.1) $ (3.8) $ (0.19)2 CMP 182.5 180.3 (2.2) (0.1) (2.3) (0.11)3 CTMEEC 8.1 8.1 - - - - 4 NGRID 262.8 251.5 (11.3) (0.4) (11.7) (0.58)5 NHT 11.6 12.4 0.8 0.1 0.9 0.04 6 NU 633.3 628.0 (5.3) (0.2) (5.5) (0.27)7 NSTAR 172.5 174.8 2.3 0.1 2.4 0.12 8 UI 110.1 114.1 4.0 0.1 4.1 0.21 9 VT Transco 121.0 117.3 (3.7) (0.1) (3.8) (0.19)10 All Other PTOs 11.2 12.2 1.0 - 1.0 0.05 11 Total Impact $ 1,563.9 $ 1,545.8 $ (18.1) $ (0.6) $ (18.7) $ (0.92)12 20,189,256

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

2012 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

BHE: Roshan RanshingeCMP: Marc GuerretteCTMEEC/CMEEC: Thomas SolinskyNGRID: 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 Requirement

2012 12CPRNS Load


1K-396 Series Breaker--Orrington

1197 $ 1,761 15.28% $ 269

2 Rebel Hill Switching Station 1031 9,300 15.28% 1,421

3Line 66 (Renamed Line 51 & 93)

1154 17,500 15.28% 2,673

4 Epping Cap Bank 1155 500 15.28% 76 5 Total $ 29,061 $ 4,439 20,189.256 $ 0.22

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

Bangor Hydro Electric CompanyBangor Hydro Electric Company2013 Forecasted PTF Revenue Requirements2013 Forecasted PTF Revenue Requirements

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

Project Name RSP ID



Forecasted PTF Revenue

Requirement2012 12CPRNS Load


1 MPRP - PTF Various $ 334,406 15.34% $ 51,283

2 MPRP PTF - FCWIP Various (91,136) 15.53% (14,156)

3 MPRP Total 243,270 37,127

4 NERC N/A 28,219 15.34% 4,327

5 Other N/A 7,024 15.34% 1,077

6 Total $ 278,513 $ 42,531 20,189.256 $ 2.11


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Central Maine Power CompanyCentral Maine Power Company2013 Forecasted PTF Revenue Requirements2013 Forecasted PTF Revenue Requirements

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

Project Name RSP ID






1 TTD Fitch Substation 1243 $ 2,604 9.07% $ 236

2 Total $ 2,604 $ 236 20,189.256 $ 0.01


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CTMEECCTMEEC2013 Forecasted PTF Revenue Requirements2013 Forecasted PTF Revenue Requirements

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

Company Project Name RSP ID




2012 12CPRNS Load


1 NEP/NECO NEEWS Various $ 239,669 15.43267% $ 36,987 2 NEP/MECO Auburn Area Study Various 92,768 15.43267% 14,317 3 NEP Salem Harbor Retirement Various 24,767 15.43267% 3,822 4 NEP Central/WesternMA Various 23,001 15.43267% 3,550 5 NEP A-127/B-128 1187 19,019 15.43267% 2,935 6 NEP Merrimack Valley/ North Shore Various 8,189 15.43267% 1,264 7 NEP Bellows Falls 680 8,008 15.43267% 1,236 8 NEP/NECO Line Maintenance Various 7,644 15.43267% 1,180 9 NEP/NECO Relay and Metering Not listed 4,377 15.43267% 675 10 NEP/NECO Circuit Breaker Replacements Not listed 3,794 15.43267% 586 11 NEP Lower SEMA 1118 2,935 15.43267% 453 12 NEP Hoosac Wind Various 996 15.43267% 154 13 NEP/NECO OTHER Various 927 15.43267% 143 14 NEP Conductor Clearance Not listed 369 15.43267% 57 15 NECO Shun Pike Substation Not listed 362 15.43267% 56 16 NEP Movement in NEEWS CWIP Various (1,248) 13.99419% (175)17 Total 435,577 67,239 $ 20,189.256 $ 3.33


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National GridNational Grid2013 Forecasted PTF Revenue Requirements2013 Forecasted PTF Revenue Requirements

(A) (B)

Increase / (Decrease) in

PTF RR

Increase / (Decrease) in

RNS Rate ($/kW-year)

1 Actual vs. Forecasted Plant $ (2.19) $ (0.11)2 Actual vs. Forecasted CWIP $ 0.63 $ 0.03 3 Change in Cost of Capital $ (0.01) $ (0.00)4 Change in Carrying Charge Factor $ (2.52) $ (0.12)5 Other (a) $ (7.18) $ (0.36)6 Interest Income / (Expense) $ (0.38) $ (0.02)7 Total 2012 Annual True-up (sum of lines 1 to 6) $ (11.65) $ (0.58)

(PTF RR in Millions of $)

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National GridNational Grid2012 True-up Analysis2012 True-up Analysis

(a) Includes Integrated Facilities charge, 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






1Replace Terminal Yard Equip (363/369/394 coupling capacitors and wave traps)

N/A $ 2,614 20.28% $ 530

2 Replace NHT High Pot Test Set N/A 825 20.28% $ 167

3Microwave to Fiber Network Installation NHT to PSNH

N/A 447 20.28% $ 91

4Repair Bridge Covering GIS BUS Work Trench in Protected Area

N/A 203 20.28% $ 41

5 ROHE Monitoring System on GIS N/A 35 20.28% $ 7 6 Total $ 4,123 $ 836 20,189.256 $ 0.04


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New Hampshire TransmissionNew Hampshire Transmission2013 Forecasted PTF Revenue Requirements2013 Forecasted PTF Revenue Requirements

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

Project Name RSP ID






The Connecticut Light & Power Company

1 NEEWS Projects - CT Various $ 124,760 16.71% $ 20,847

2 NEEWS CWIP N/A (105,191) 14.17% (14,906)3 115 KV Hollow Core Insulator Projects N/A 31,108 16.71% 5,198 4 345 KV & 115KV NERC Facility Ratings Projects N/A 27,077 16.71% 4,525 5 Relay Replacements N/A 14,792 16.71% 2,472 6 South Meadow Bulk Power Substation Upgrades 85 12,207 16.71% 2,040 7 South Norwalk Electric Works 115KV Tie 1498 9,619 16.71% 1,607 8 Safety & Obsolete Equipment Replacement Projects N/A 6,990 16.71% 1,168 9 Replace Torrington 8A-1X Auto Transformer N/A 6,886 16.71% 1,151 10 Northeast Simsbury Transmission Upgrades 1230 6,830 16.71% 1,141 11 Separate Lines 348, 310, 371 & 383 1218 6,504 16.71% 1,087 12 OPGW Projects N/A 6,458 16.71% 1,079 13 Break Fix, Tools & Other Annuals N/A 5,453 16.71% 911 14 SCADA Upgrades & Expansion N/A 3,517 16.71% 588 15 Digital Fault Recorder Expansion for Capacitor Banks N/A 2,366 16.71% 395 16 Transformer Load Tap Changers and Oil Filtration Systems N/A 1,640 16.71% 274 17 1990 Line Structure Replacement 1229 1,488 16.71% 249 18 Norwalk - Install Temperature Monitoring UG N/A 1,457 16.71% 243 19 Line 1416 Loop into Third Taxing District SS - Tie 1497 1,295 16.71% 216 20 1813 & 1238 Line Lightning Protection N/A 1,088 16.71% 182 21 Additional PTF Reliability Projects N/A 3,706 16.71% 619 22 Sub-Total CL&P $ 170,050 $ 31,087 20,189.256 $ 1.54


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Northeast UtilitiesNortheast Utilities2013 Forecasted PTF Revenue Requirements2013 Forecasted PTF Revenue Requirements

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

Project Name RSP ID






Public Service Company of New Hampshire

1 Maine Power Reliability Project Various 22,754 18.62% 4,237

2 Central Region Reliability Projects Various 15,271 18.62% 2,843 3 Southern Region Reliability Projects Various 9,011 18.62% 1,678 4 Western Region Reliability Projects Various 7,746 18.62% 1,442

5 OPGW Projects N/A 3,851 18.62% 717

6 Break Fix, Tools & Other Annuals N/A 3,275 18.62% 610 7 Relay Replacements N/A 2,198 18.62% 409 8 Deerfield 2nd Auto Transformer Various 1,973 18.62% 367

9 Reeds Ferry Circuit Breaker Addition N/A 992 18.62% 185

10 Safety & Obsolete Equipment Replacement Projects N/A 927 18.62% 173 11 Seacoast Region Reliability Projects Various 510 18.62% 95 12 115KV NERC Alert Projects N/A 472 18.62% 88 13 Additional PTF Reliability Projects N/A 1,290 18.62% 240 14 Sub-Total PSNH 70,270 13,084 20,189.256 $ 0.65

Western Massachusetts Electric Company15 NEEWS Projects - MA Various 217,416 15.07% 32,765 16 NEEWS CWIP Various (168,340) 13.09% (22,036)17 OPGW Projects N/A 8,555 15.07% 1,289 18 Chicopee Electric Light Project N/A 4,438 15.07% 669 19 115 KV Hollow Core Insulator Projects N/A 4,055 15.07% 611 20 312 Line Structure Replacement (115KV) 1268 3,028 15.07% 456 21 SCADA Upgrades &Expansion N/A 1,845 15.07% 278 22 Relay Replacements N/A 1,028 15.07% 155 23 Safety & Obsolete Equipment Replacement Projects N/A 668 15.07% 101 24 Break Fix, Tools & Other Annuals N/A 524 15.07% 79 25 Additional PTF Reliability Projects N/A 706 15.07% 106 26 Sub-Total WMECO 73,923 14,473 20,189.256 $ 0.72

27 Sub-Total CL&P 170,050 31,087 $ 1.54

28 Total CL&P, PSNH and WMECO 314,243 58,644 20,189.256 2.91


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Northeast Utilities (Continued)Northeast Utilities (Continued)2013 Forecasted PTF Revenue Requirements2013 Forecasted PTF Revenue Requirements

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

Project Name RSP ID






NSTAR Electric Company1 SEMA Various $ 100,000 13.88% $ 13,880 2 Infrastructure Replacement N/A 22,418 13.88% 3,112 3 Boston Network Solution Various 19,436 13.88% 2,698 4 UG Infrastructure N/A 7,108 13.88% 987 5 Reliability Upgrades Various 5,781 13.88% 802 6 Breakers/Disc/CCVTs Various 4,993 13.88% 693 7 BPS and Security N/A 4,506 13.88% 625 8 Trapelo Road 842 4,099 13.88% 569 9 Brook Street 1345 1,912 13.88% 265 10 Transformers and Relays N/A 1,004 13.88% 139 11 Total NSTAR $ 171,257 $ 23,770 20,189.256 $ 1.18

12 Total CL&P, PSNH and WMECO $ 314,243 $ 58,644 $ 2.91 13 Total NU $ 485,500 $ 82,414 20,189.256 $ 4.09


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Northeast Utilities (Continued)Northeast Utilities (Continued)2013 Forecasted PTF Revenue Requirements2013 Forecasted PTF Revenue Requirements

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

Project Name RSP ID






1Reconfiguration of 115kV (8300) line from Mill River to Quinnipiac

1246 $ 17,400 20.03% $ 3,486

2New England East-West Solution (NEEWS)

Various 18,700 20.03% 3,746

3East Shore 115kV Oil Circuit Breaker & Disconnect Replacements

974 14,700 20.03% 2,945

4North Haven 115kV Capacitor Bank TRV Mitigation Project

1193 4,400 20.03% 881

5East Shore 115/13.8 kV Substation Capacity Upgrade

1292 3,200 20.03% 641

6Hawthorne 115kV OCB Switch Replacement

N/A 1,200 20.03% 241

7 Other N/A 2,075 20.03% 416 8 Total $ 61,675 $ 12,356 20,189.256 $ 0.61


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The United Illuminating CompanyThe United Illuminating Company2013 Forecasted PTF Revenue Requirements2013 Forecasted PTF Revenue Requirements

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

Project Name RSP ID




2012 12CPRNS Load


1 Ascutney Substation 1169 $ 18,900 17.29% $ 3,268

2 Bennington Substation 1170 14,800 17.29% 2,559

3 Reactor Additions 1172 8,500 17.29% 1,470

4 Line Structure Project N/A 7,000 17.29% 1,210

5 K-41 Line Project N/A 4,400 17.29% 761

6 Other (Close out Costs) N/A 4,000 17.29% 692 7 Total $ 57,600 $ 9,960 20,189.256 $ 0.49


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VT Transco LLCVT Transco LLC2013 Forecasted PTF Revenue Requirements2013 Forecasted PTF Revenue Requirements

Questions ?Questions ?

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Appendix- Appendix- Historical Rate InformationHistorical Rate Information

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RNS Rates RNS Rates ($/kW-year)($/kW-year)June 1, 1997 – June 1, 2013June 1, 1997 – June 1, 2013

Pre-97 Post-96 Total06/01/97 14.25 - 14.2506/01/98 15.01 0.56 15.5706/01/99 14.56 0.80 15.3606/01/00 13.80 1.08 14.8806/01/01 13.13 1.73 14.8606/01/02 12.62 2.52 15.1406/01/03 12.18 3.42 15.6006/01/04 12.48 4.33 16.8106/01/05 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 15.93 71.02 86.95

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RNS Rates RNS Rates June 1, 1997 – June 1, 2013June 1, 1997 – June 1, 2013

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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 BHE CMP CTMEEC NGRID NHT NU NSTAR UI VT Transco

12/31/96 1,569.8 4.1 110.3 - 372.9 - 535.9 368.4 117.0 61.2

12/31/97 1,702.8 6.2 117.5 - 383.2 - 616.9 397.9 119.3 61.8

12/31/98 1,723.4 6.3 120.1 - 396.4 - 617.1 401.5 119.9 62.0

12/31/99 1,759.1 16.9 119.4 - 413.6 - 629.4 396.9 120.1 62.8

12/31/00 1,866.8 18.6 138.5 - 470.5 - 630.1 425.8 121.2 62.1

12/31/01 1,977.9 19.3 145.5 - 516.7 - 644.8 447.7 121.9 82.0

12/31/02 2,072.9 19.3 150.7 - 537.8 - 652.2 499.4 124.2 89.3

12/31/03 2,217.2 19.7 151.3 - 568.2 24.0 699.8 531.0 125.6 97.6

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

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

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

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

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

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

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

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

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

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PTF InvestmentPTF Investment(In Millions of $)(In Millions of $)

PTF InvestmentPTF Investment(In Millions of $)(In Millions of $)

26

1 Total RNS ATRR @ 6/1/12 $ 1,518.5

2 Less: 2012 Forecast 202.9

3 Less: True Up to 2011 Actual (50.3)

4 Sub-total (2011 Test Year Actual) (Line 1-2-3) 1,365.9

5 Update to 2012 Test Year Data 184.5

6 2013 Forecast 223.7

7 2012 True Up (18.1)

8 Interest on 2012 True Up (0.6)

9 Total RNS ATRR @ 6/1/13 (Line 4+5+6+7+8) $ 1,755.4

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

rns rate – effective june 1, 2013

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