The Connecticut Light and Power Company
P.O. Box 270
Hartford, CT 06141-0270
Julie Cammarata, CMEEC
Al Lara, CL&P
After Hours Phone:
CTMEEC to Invest in CL&P Transmission Projects
NORWICH and BERLIN, Conn., December 17, 2010
– In support of broader participation in regional transmission planning, today the Connecticut Light & Power Company (CL&P), a Northeast Utilities company [NYSE: NU], and the Connecticut Transmission Municipal Electric Energy Cooperative (CTMEEC) filed a joint application seeking state regulatory approval of the transfer of a segment of high voltage transmission lines built by CL&P in the town of Wallingford.
The filing with the Connecticut Department of Public Utility Control is the culmination of efforts begun when the seven municipally owned electric departments that comprise the Connecticut Municipal Electric Energy Cooperative formed CTMEEC and began negotiating with CL&P for transmission ownership within its service area.
“This transaction illustrates the municipal utilities’ commitment to supporting improved reliability through transmission infrastructure. CL&P and CTMEEC worked collaboratively on this innovative transaction which achieves the long sought goal of electric transmission ownership by Connecticut’s municipally owned electric utilities,” said Maurice Scully, chief executive officer of CMEEC.
“This is another important step in promoting broader participation and investment in transmission reliability for the mutual benefit of all electric customers, regardless of their service provider,” said James A. Muntz, senior vice president – Transmission for CL&P.
CTMEEC is a publically owned entity formed last year by the cities of Groton and Norwich, the Borough of Jewett City, the Second (South Norwalk) and Third (East Norwalk) Taxing Districts of the City of Norwalk, and the Town of Wallingford, each acting through its municipally owned electric utility and the Bozrah Light and Power Company.
The proposed transaction involves 345-kV and 115-kV transmission lines and supporting structures constructed by CL&P as part of the 69-mile Middletown to Norwalk transmission project and which are located primarily within the retail service area of the Town of Wallingford Electric Division. CL&P will continue to operate and maintain the lines for CTMEEC. The transaction does not include the transfer of land or equipment not related to electric transmission service.
The purchase price will be based on the net book value of the assets at the time of the closing of the sale, plus any additional closing adjustments. This segment of lines is projected to have a value of $42.3 million at the anticipated time of closing in May of 2011. The sale is not expected to have an adverse effect on competition or rates.
In addition to today’s DPUC filing, CL&P and CMEEC will seek required approvals from the Federal Energy Regulatory Commission. The transaction is conditional on the receipt of state and federal regulatory approvals and is subject to termination and other rights as more fully described in the agreement. This transaction is already reflected in the transmission rate base forecasts published in Northeast Utilities’ third quarter 2010 10Q filing.
The Connecticut Municipal Electric Energy Cooperative (“CMEEC”) is a publicly directed joint action supply agency formed by the state’s municipal electric utilities in 1976 under authority of the state’s General Statutes. CMEEC is owned by the municipal utilities in the cities of
, the Borough of Jewett City, and the Second (South Norwalk) and Third (East Norwalk) Taxing Districts of the City of Norwalk, Connecticut. CMEEC also provides all the power required by other utilities participating in CMEEC including the
Town of Wallingford Department of Public Utilities
Bozrah Light and Power Company
, and the Mohegan Tribal Utility Authority.
The Connecticut Light and Power Company (CL&P) has been part of everyday life in Connecticut for more than 100 years, providing safe and reliable electric service to homes, neighborhoods and businesses. With 1.2 million customers in 149 cities and towns, CL&P is improving the environments you live in, by offering programs in energy conservation, economic development and environmental stewardship. CL&P is a Northeast Utilities company (NYSE: NU). For more information, please visit
www.cl-p.com and follow us on Twitter @CTLightandPower.
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