NORTHEAST UTILITIES AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

March 31,

December 31,

(Thousands of Dollars)

2014 

2013 

ASSETS

Current Assets:

Cash and Cash Equivalents

$

 89,150 

$

 43,364 

Receivables, Net

 980,033 

 765,391 

Unbilled Revenues

 202,867 

 224,982 

Fuel, Materials and Supplies

 228,192 

 303,233 

Regulatory Assets

 573,028 

 535,791 

Prepayments and Other Current Assets

 292,539 

 214,288 

Total Current Assets

 2,365,809 

 2,087,049 

Property, Plant and Equipment, Net

 17,713,027 

 17,576,186 

Deferred Debits and Other Assets:

Regulatory Assets

 3,486,645 

 3,758,694 

Goodwill

 3,519,401 

 3,519,401 

Marketable Securities

 507,931 

 488,515 

Other Long-Term Assets

 504,057 

 365,692 

Total Deferred Debits and Other Assets

 8,018,034 

 8,132,302 

Total Assets

$

 28,096,870 

$

 27,795,537 

The data contained in this report is preliminary and is unaudited.  This report is being submitted for the sole purpose of providing information to present shareholders about Northeast Utilities and Subsidiaries and is not a representation, prospectus or intended for use in connection with any purchase or sale of securities.

NORTHEAST UTILITIES AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

For the Three Months Ended March 31,

(Thousands of Dollars, Except Share Information)

2014 

2013 

Operating Revenues

$

 2,290,590 

$

 1,995,023 

Operating Expenses:

Purchased Power, Fuel and Transmission

 978,150 

 747,809 

Operations and Maintenance

 351,688 

 346,092 

Depreciation

 150,807 

 154,977 

Amortization of Regulatory Assets, Net

 57,898 

 54,049 

Amortization of Rate Reduction Bonds

 - 

 34,499 

Energy Efficiency Programs

 138,825 

 105,771 

Taxes Other Than Income Taxes

 145,533 

 132,881 

Total Operating Expenses

 1,822,901 

 1,576,078 

Operating Income

 467,689 

 418,945 

Interest Expense:

Interest on Long-Term Debt

 87,377 

 85,906 

Other Interest

 2,598 

 (9,651)

Interest Expense

 89,975 

 76,255 

Other Income, Net

 1,667 

 7,765 

Income Before Income Tax Expense

 379,381 

 350,455 

Income Tax Expense

 141,545 

 120,487 

Net Income

 237,836 

 229,968 

Net Income Attributable to Noncontrolling Interests

 1,879 

 1,879 

Net Income Attributable to Controlling Interest

$

 235,957 

$

 228,089 

Basic Earnings Per Common Share

$

 0.75 

$

 0.72 

Diluted Earnings Per Common Share

$

 0.74 

$

 0.72 

Dividends Declared Per Common Share

$

 0.39 

$

 0.37 

Weighted Average Common Shares Outstanding:

Basic

 315,534,512 

 315,129,782 

Diluted

 316,892,119 

 316,002,538 

The data contained in this report is preliminary and is unaudited.  This report is being submitted for the sole purpose of providing information to present shareholders about Northeast Utilities and Subsidiaries and is not a representation, prospectus or intended for use in connection with any purchase or sale of securities.

NORTHEAST UTILITIES AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the Three Months Ended March 31,

(Thousands of Dollars)

2014 

2013 

Operating Activities:

Net Income

$

 237,836 

$

 229,968 

Adjustments to Reconcile Net Income to Net Cash Flows

Provided by Operating Activities:

 Depreciation

 150,807 

 154,977 

 Deferred Income Taxes

 137,417 

 168,938 

 Pension, SERP and PBOP Expense

 24,995 

 53,102 

 Pension and PBOP Contributions

 (6,622)

 (47,048)

 Regulatory Overrecoveries, Net

 872 

 39,218 

 Amortization of Regulatory Assets, Net

 57,898 

 54,049 

 Amortization of Rate Reduction Bonds

 - 

 34,499 

 Proceeds from DOE Damages Claim

 163,300 

 77,936 

 Deferred DOE Proceeds

 (163,300)

 - 

 Other

 (7,574)

 (51,106)

Changes in Current Assets and Liabilities:

 Receivables and Unbilled Revenues, Net

 (182,221)

 (129,431)

 Fuel, Materials and Supplies

 75,041 

 28,487 

 Taxes Receivable/Accrued, Net

 (59,840)

 (21,295)

 Accounts Payable

 53,905 

 (86,916)

 Other Current Assets and Liabilities, Net

 11,282 

 (32,235)

Net Cash Flows Provided by Operating Activities

 493,796 

 473,143 

Investing Activities:

Investments in Property, Plant and Equipment

 (348,691)

 (388,950)

Proceeds from Sales of Marketable Securities

 128,505 

 98,070 

Purchases of Marketable Securities

 (132,605)

 (184,030)

Other Investing Activities

 1,637 

 27,997 

Net Cash Flows Used in Investing Activities

 (351,154)

 (446,913)

Financing Activities:

Cash Dividends on Common Shares

 (118,460)

 (116,431)

Cash Dividends on Preferred Stock

 (1,879)

 (1,879)

Decrease in Short-Term Debt

 (299,500)

 (228,000)

Issuance of Long-Term Debt

 400,000 

 400,000 

Retirements of Long-Term Debt

 (75,000)

 - 

Retirements of Rate Reduction Bonds

 - 

 (62,529)

Other Financing Activities

 (2,017)

 (2,322)

Net Cash Flows Used in Financing Activities

 (96,856)

 (11,161)

Net Increase in Cash and Cash Equivalents

 45,786 

 15,069 

Cash and Cash Equivalents - Beginning of Period

 43,364 

 45,748 

Cash and Cash Equivalents - End of Period

$

 89,150 

$

 60,817 

The data contained in this report is preliminary and is unaudited.  This report is being submitted for the sole purpose of providing information to present shareholders about Northeast Utilities and Subsidiaries and is not a representation, prospectus or intended for use in connection with any purchase or sale of securities.