Rating Agency Meetings New York March 19, 2007

Rating Agency MeetingsNew YorkMarch 19, 2007

Energy / Growth / Leadership

2

Agenda For Today

2006 implementation of strategic plan

2006 financial performance

Transmission business

Distribution and PSNH generation business

Rate cases

Financial forecast

3

2006 Strategic Plan Implementation

4

We Have Transformed Ourselves Into A Focused Regulated Utility

Northeast UtilitiesNortheast Utilities

Electric Transmission

Electric Transmission

ElectricDistribution

ElectricDistribution

CompetitiveCompetitive

RegulatedGeneration

RegulatedGenerationGas

Distribution

GasDistribution

RegulatedRegulated

WholesaleWholesale

RetailRetail

ServicesServices

GenerationGeneration

Year End 2005 Today

Northeast UtilitiesNortheast Utilities

CL&P

WMECO

PSNH

Yankee Gas

D

D

D

T

T

T

G

5

Chairman, President & CEO

Charles W. Shivery

Senior Vice President and CFO

David R. McHaleExec. Vice President

Cheryl W. Grise’

Exec. Vice President, Operations - NULeon J. Olivier

Senior Vice President & General CounselGregory B. Butler

Vice President – Human Resources

Jean M. LaVecchia

Competitive BusinessesWilliam J. Quinlan

President & Chief Operating Officer - CL&P/Yankee GasRaymond P. Necci

President & ChiefOperating Officer -

PSNHGary A. Long

President & Chief Operating Officer -

WMECORodney O. Powell

Vice President,Utility Group Services

Michael F. Ahern

Vice President,Customer ServicesPaul E. Ramsey

Vice President,Transmission Projects

James A. Muntz

Vice President,Transmission

Strategy & OperationsDavid H. Boguslawski

New Organizational Structure

6

2006 Highlights: Competitive Businesses Divestiture

2006 Accomplishments Remaining Activities

Generation

Sold all generation on 11/1/06 for $1.34 billion

$320 million of 8.81% debt assumed by new owners

None

Retail Sold to Hess on 6/1/06 Net payments to Hess of about $40

million - $25 million in 2006

Remaining payment of $15 million to Hess due by the end of 2007

WholesaleServed approximately half of 15 million mwh of remaining obligations

About half of remaining 7.5 million mwh will be served in 2007

Remaining obligations roll off through 2013

Services

Sold or winding down all businesses except E. S. Boulos

About $85 million of debt refinanced by new owners

Operate E. S. Boulos until sale (about $40 million of annual revenues, modestly profitable)

Complete 8 remaining construction projects not assumed by new owners by mid-year 2007

Telecom Sold remaining shares in Globix None

7

Remaining Commitments In The Wholesale Businesses

PJM Wholesale: 5 sales contracts, 4 of which expire in May 2007

NYMPA Wholesale: 1 sales contract which expires in 2013 Early years hedged

Wholesale contracts marked at 12/31/06 at negative $126.5 million

New England: In-the-money generation entitlement contract expires 12/31/12 Estimated positive value at 12/31/06 of about $100 million

Negative impact on cash flow expected to be $40 million in 2007 and $27 million in 2008, down from $100 million in 2006

8

Strategic Plan – Regulated Businesses

2006 Goal 2006 Results

Complete Bethel-Norwalk Done

Complete Northern Wood Done

Begin remaining SW CT projects Done

File/settle PSNH, WMECO, Yankee Gas cases Done

Develop CL&P rate case strategy In process

Complete FERC ROE case Done

Merge CL&P, Yankee Gas management Done

Better align organization to support 100% In process regulated companies

9

Enterprise Risk Management – Status Update

Board of Trustees

Chief ExecutiveOfficer

Chief FinancialOfficer

DirectorCorporate

ERM

Risk & CapitalCommittee

Utility Group Risk Controller

Corporate Shared ServicesRisk Controller

TransmissionRisk Controller

Senior RiskAnalyst

Executive VicePresident

Operations

Chair

ERM Organization Structure

• Enterprise Risk Management is in its second year of implementation as a corporate oversight function

• Corporate level Enterprise Risk Management Group works directly with the businesses and corporate functions

• Accountability for risk remains with the businesses

• Regular reports to the Board of Trustees on strategic and operational risks

• Fully functioning Risk and Capital Committee which integrates risk with capital expenditure decisions

• Responsible for establishment and oversight of ERM policies and procedures

• Executive management membership

• ERM principles integrated into strategic planning and budgeting processes with strategic and operating plans “risk rated”

10

2006 Results

11

$122.3

$41.1

$197.5

$59.8

$2.0 -$398.2

-$18.7

$211.3

($400.0)

($350.0)

($300.0)

($250.0)

($200.0)

($150.0)

($100.0)

($50.0)

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

2005

2006

2006 Earnings

Distribution and Regulated Generation

Transmission Parent/Other

$115.8

$81.7*

*$74 million from PLR and $7.7 million from competitive generation sale

In M

illio

ns

Competitive

12

$60.0

$33.9

$17.3

$147.6

$27.0

$11.0 $11.9$11.1

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

$180.0

$200.0

2005

2006

Distribution/Regulated Generation Results

CL&P PSNH WMECO

$65.9

*$74 million from PLR and $7.7 million from competitive generation sale

In M

illio

ns

Yankee Gas

$81.7*

13

Cash Sources And Uses In 2006

$1,341$250

$407

Sale of Competitive Businesses (inc. NGC debt)

Debt Issuance

Cash From Operations

$61.0

$872.0

$220.0

$436.0

$320.0 $113.0

Cap Ex

Common Dividends

NGC Debt Reduction

Increase In Cash & Equivalents

RRB Retirements & Escrow

Debt Retirement

Major Sources Major Uses(in millions)

14

Improved Balance Sheet

$3,440

$116

$2,032

Total Debt (excluding RRBs) Preferred Stock Common Equity

$2,965

$116

$2,798

Total Debt Preferred Stock Common Equity

9/30/05 12/31/06

(in millions)

36.4%61.5%

2.1%

47.6% 50.4%

2.0%

15

Liquidity Today (In Millions)

Cash Internal BorrowingsBorrowings On

$1 Billion of

External Facilities

NU $443 0

CL&P ($243) $20 in LOCs

PSNH ($26) $20 in LOCs

WMECO ($65) 0

Yankee Gas ($50) 0

NUEI/Select Energy ($26) $7in LOCs

Other, Net $79

Surplus cash invested externally

$112 $47 in LOCs

16

Share Price Up 43% In 2006 Enhances Access To Capital

$16.0$17.0$18.0$19.0$20.0$21.0$22.0$23.0$24.0$25.0$26.0$27.0$28.0$29.0$30.0$31.0

11/1 12/27 2/22 4/18 6/12 8/4 9/28 11/21 1/19 3/15

November 2005 – March 15, 2007

Share Price Chart

$425 million equity issuance

17

Transmission Business

18

Transmission: A Very Successful 2006

Earnings up 45% Bethel-Norwalk completed ahead of schedule, below budget Other SW Connecticut projects commenced Several other projects completed successfully (Killingly

substation 10% below budget) Favorable FERC decisions on generic transmission incentives,

New England ROE Strong initial results from NERC readiness audit Initial planning under way on New England East West Solution

(NEEWS)

19

Growing Transmission Business

(in $ millions) 2004 2005 2006

Revenues $140.7 $167.5 $216.0

D&A (21.6) (24.0) (29.8)

Other operating (70.6) (80.7) (93.6)

Operating income 48.5 62.8 92.6

Interest, net (12.0) (14.4) (22.0)

Income tax expense (8.9) (12.5) (16.4)

Other income, net 1.9 6.6 6.8

Preferred dividends (1.3) (1.4) (1.2)

Net income 28.2 41.1 59.8

20

The Next Five Years: Transmission Capital Expenditures

$0.00

$100.00

$200.00

$300.00

$400.00

$500.00

$600.00

$700.00

$800.00

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Other

NEEWS

Major CT

Historic Forecast$

Mill

ions

Up To $2.5 Billion

• The New England East-West Solution (NEEWS) family of projects is growing in scope and definition.

• Over the next three years, a high level of capital spending is associated with projects that have already received siting approval.

$1,062 Million $1.1 Billion of major

CT projects in 2007-2011 forecast period; $1.65 billion

in total

NEEWS family of projects estimated

at $710 million during the 2007-

2011 forecast period

21

Projected Transmission Year End Rate Base

$840

$2,117 $2,218$2,461

$140

$175

$276

$282$335

$325

$75

$80

$132

$173$208

$239

$1,512$1,173

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2006 2007 2008 2009 2010 2011

CL&P PSNH WMECO

Transmission Rate Base2006-2011

CAGR of 23%

$ M

illio

ns

*Reflects FERC approved 50% CWIP for southwest CT projects

* **

22

Four Major SW Connecticut Projects – A $1.65 Billion Investment

SWCT improvements have been a top priority in each of ISO-NE’s last four regional transmission expansion plans. Our four major

projects there total about $1.65 billion in investment.

50% of CT Load

Bethel-Norwalk 345 kV Underground& Overhead$350 Million

21 miles 345kV (56% underground)


Completed October 2006 at a cost of $340 million Middletown-Norwalk 345 kV

Underground & Overhead$1,047 Million (NU Share)Glenbrook Cables

115 kV underground$183 Million

9 miles 115kV underground

Projected in-service date: 2008

Under contract – construction under way, 20% complete

Long Island Cable138 kV cross sound$72 Million (NU share)

11 miles 138kV submarine cable

Joint project with LIPA


Under contract – cable being manufactured



Joint project with United Illuminating


Construction under way, 16% complete

COMPLETE

COMPLETE

23

LUDLOW MILBURY

CARD

NORTHBLOOMFIELD

Rhode Island

Connecticut

Springfield

Interstate

FROSTBRIDGE

AGAWAM WEST FARNUM

KENT COUNTY

LAKE ROAD

We Have Selected The Preferred Routes For NEEWS

The four components, identified to date, are:

A Rhode Island Reliability Component

A CT East-West Reliability Component

A Springfield Reliability Component

An Interstate Reliability Component

Total Planning Grade Estimate (NU share):

$1.1 - $1.4 Billion

Total Planning Grade Estimate (NU share):

$1.1 - $1.4 Billion

Post-NEEWS Import Capability into CT is expected to grow to

3600 MW

Post-NEEWS Import Capability into CT is expected to grow to

3600 MW

24

Rate Case Status: Transmission

NU’s FERC-approved transmission tariffs fully track all transmission costs

We have forward-looking rates, adjusted every six months, with an annual true-up provision to ensure timely recovery of transmission investment

FERC decision on New England transmission ROE issued on October 31, 2006

Base ROE set at 10.2% for the period 2/1/2005 through 10/31/2006 and 10.9% beyond that

Incentive adders include: 50 basis points for joining an RTO 100 basis points for new transmission identified by ISO-NE within its regional

system planning process November 30th request for rehearing by New England transmission

owners – apparent 30 basis point error in base ROE Other parties seeking to reduce incentive ROEs

25

Transmission - Retail

CL&P

Legislatively mandated tracker reset semi-annually

WMECO

Regulatory tracker reset annually

PSNH

Regulatory tracker included in rate case settlement Effective 7/1/06

Impact on rates beginning 7/1/07

Will reset annually beginning 1/1/08

26

Distribution and Generation

27

Projected Distribution, Regulated Generation Capital Expenditures

$210$270 $261 $266 $270 $279

$110

$123 $134 $111 $128$148

$30

$34 $33$31

$31$31

$90

$62 $42$41

$41$41

$0

$100

$200

$300

$400

$500

$600

2006 2007 2008 2009 2010 2011

CL&P PSNH WMECO Yankee Gas

$ M

illio

ns

28

Projected Distribution And Regulated Generation Year End Rate Base

$1,765 $1,964 $2,084 $2,221 $2,358 $2,464

$868$969

$1,085$1,151

$1,220$1,289

$340$367

$388$406

$422$436

$493

$646$655

$656$668

$678

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

2006 2007 2008 2009 2010 2011

CL&P PSNH WMECO Yankee Gas

Projected Distribution & Generation Rate Base

CAGR of 7%

$ M

illio

ns

29

Current Major Distribution/Regulated Generation Projects Mostly Complete

Yankee Gas’s 1.2 Bcf liquid natural gas production facility in Waterbury, CT

$108 million cost About 90 percent complete Scheduled to be in service for 2007-

2008 heating season Will enhance reliability, help insulate

customers from price volatility

Conversion of PSNH’s 50 MW Schiller unit in Portsmouth, NH from coal to wood

$74 million cost Commenced operation in December Enhances fuel diversity, reduces sulfur,

NOx, mercury emissions

30

CL&P Retail Rate Case To Be Filed This Summer

Expect to under-earn ROE significantly in 2007 due to lack of sales growth, higher costs, modest rate increase

Growing capital needs in distribution business to maintain reliability

Regulators generally support reliability initiatives

Working on strategies to blunt impact of rate case

31

CL&P Has Significant Cost Components Which Are Tracked And Reconciled

For Timely Recovery

Power supplies bid on a staggered schedule

GSC set to reflect costs

Congestion costs passed through FMCC

Transmission projects helping to contain them

Transmission charge reset semi-annually

Legislative mandate

Majority of stranded costs recovered, except for RRBs which mature in 2010, decommissioning of Yankee nuclear units, and Independent Power Producer contracts

32

Recovery Of Generation And Reliability Costs In 2007 By Rate Component

Cost CL&P PSNH WMECO

Energy GSC ES DS

Capacity GSC ES DS

Congestion & losses BFMCC ES DS

Other Charges (a):

Black Start NBFMCC TCAM TT

VAR support - energy NBFMCC ES TT

VAR support - capital NBFMCC TCAM TT

Load Response NBFMCC ES TT

SCR NBFMCC TCAM TT

RMR NBFMCC TCAM TT

SW CT Energy Res. NBFMCC N/A N/A

ISO S-1 (S&D) NBFMCC TCAM TT

ISO S-2 (E) NBFMCC ES TC

ISO S-3 (R) N/A ES N/A

EIA NBFMCC N/A N/A

D&D Amortization NBFMCC N/A N/A

Misc. NEPOOL expense NBFMCC ES TTNotes:(a) Definitions of “other charges” are provided in the glossary on pages 48 - 51

BFMCC – Bypassable Federally Mandated Congestion ChargeDS – Default Service Recovery MechanismES – Energy Service ChargeGSC – Generation Service ChargeNBFMCC – Nonbypassable Federally Mandated Congestion ChargeTC – Transition ChargeTT – Transmission TrackerTCAM – Transmission Cost Adjustment Mechanism

33

CL&P Costs Being Recovered In A Timely Manner

Estimated Average Rate /kwh 1/1/07

Frequency of Rate Change

Costs Being Recovered

Cost Basis

Distribution 2.786 Rate proceeding Core distribution costs Projected

Transmission 0.717 January & JulyRetail transmission costs

Actual & projected

CTA 1.042 January Stranded costs Actual & projected

C&LM 0.222 LegislationConservation and load management

N/A

SBC - January Public policy costs Actual & projected

Renewable 0.074 LegislationFunding of state renewables program

N/A

FMCC - Delivery 0.871 January & JulyFERC costs associated with standard market design

Actual & projected

Subtotal – Delivery 5.712

GSC 11.276 January & July Supplier energy costs Actual & projected

FMCC - Generation 0.800 January & July Supplier energy costs Actual & projected

Subtotal - Energy 12.076

Total 17.788

¢

Notes:C&LM – Conservation and Loan ManagementCTA – Competitive Transition AssessmentFMCC – Federally Mandated Congestion ChargeGSC – Generation Services ChargeSBC – System Benefits Charge

34

Peak Load Growing Much Faster Than Overall Consumption

0.9

1.0

1.1

1.2

1.3

1.4

1.5

1990

199119

92199

3199

4199

5199

6199

7199

819

99200

0200

1200

2200

3200

4200

5200

620

07200

820

09201

0201

1

Residential Use Per Customer Summer Peak

0.9

1.0

1.1

1.2

1.3

1.4

1.5

1.6

Residential Use Per Customer Summer Peak

CL&P Residential Use Per Customer and Summer Peak

Weather Normalized

PSNH Residential Use Per Customer and Summer Peak

Weather Normalized

Residential customer growth remains steady, at roughly the rate of housing growth

Residential use per customer has flattened in response to price induced conservation

Growth in peak demand outpaces growth in use per customers, as comfort during extreme weather appears to outweigh cost

Load factors continue to fall as peak loads riseLoad factors continue to fall as peak loads rise

35

2.51 2.99

0.380.61

9.138.59

1.300.300.30

3.37

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

Stranded Cost Recovery Charge

System Benefits Charge

Consumption Tax

Energy

Transmission

Distribution

PSNH Bills Much Lower Despite July T&D Rate Increase

January 2006 Total 15.75 cents/kwh

July 2007 Total 13.85 cents/kwh

0.06 0.06

36

PSNH Distribution Rate Case Settlement

Joint settlement with NHPUC staff, Consumer Advocate filed 2/26/07

Proposed effective date of 7/1/07 Key elements

9.67% ROE, 7.55% overall cost of capital Transmission tracker to be reset annually $37.7 million estimated annualized increase ($26.45 million for

distribution; $11.24 million for transmission) in addition to $24.5 million increase effective 7/1/06

Incremental increase includes: $8.76 million, 12-month increase to recoup revenues not collected

between 7/1/06 and 6/30/07 $9.2 million related to storm costs to be recovered over three years

Generation ROE of 9.62% unaffected

37

Additional Factors Lowering PSNH Costs

Project 2006 Payments 2006 MWH Purchases Cents/kwh Expiration

Bethlehem $21.1 million 123,499 $0.1709 12/18/06

Bridgewater $32.4 million 130,794 $0.2479 8/05/07

Hemphill $12.8 million 96,656 $0.1322 10/26/06

Tamworth $23.2 million 169,781 $0.1367 3/31/08

$89.5 million 520,730 $0.1719

@ $80/mwh replacement energy cost, annual energy cost savings when all rate orders end will be about $46 million = rate cut of 0.56 cents/kwh

RRBs: PSNH RRB-2 matures 2/1/08, annual savings - $10 million

IPP Contracts Expiring:

38

PSNH Costs Being Recovered In A Timely Manner




Cost Basis

Distribution 2.990 Rate proceeding Core distribution costs Known & measurable

Transmission 0.610 January Retail transmission costs

Actual & projected

SCRC 1.300 January Stranded costs Actual & projected

SBC 0.300 LegislativeC&LM programs and energy assistance costs

N/A

Consumption Tax 0.060 LegislativePass through to New Hampshire

N/A


Energy Service 8.590 January & JulyPSNH generation and purchased power costs

Actual & projected

Total 13.850

¢

Notes:C&LM – Conservation and Loan ManagementSCRC – Stranded Cost Recovery ChargeSBC – System Benefits Charge

39

Yankee Gas Rate Case Highlights

Net increase of $37 million (8.4%) Base rate increase of $68 million Lower pipeline, commodity charges due to LNG facility of $26.5 million Savings from expected property tax abatement of $4 million

Expected effective date of July 1, 2007 Most recent increase January 1, 2005

$68 million base rate increase driven by: Improved returns ($17.5 million)* Higher rate base ($14 million)* Amortization of deferred hardship and environmental remediation costs ($11

million) Higher O&M ($11 million, including $3 million for LNG facility electricity)* Higher depreciation over July 1, 2005 – June 30, 2006 test year ($9 million)* Higher property and other taxed ($6 million)*

*Partially related to LNG facility – Overall total related to LNG facility about $20 million

40

Current Yankee Gas Rate Case Schedule

December 29

2006 2007

March 6

March 13

April 19

May 15

May 28

June 27

July 1

Evidentiary hearings

start

Briefs due

Consumer Counsel

testimony due

Final decision

Increase expected to be effective

Rate case filed

Draft decision

Statutory deadline for

decision

41

Yankee Gas Rate Base and Cap Ex

$543 $555 $559 $573 $586$497

$92$95$97$100$103

$0

$100

$200

$300

$400

$500

$600

$700

2006 2007 2008 2009 2010 2011

Other LNG

$42.1 $41.2 $41.2 $41.3$49.5$41.0

$48.9

$13.0

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$90.0

$100.0

2006 2007 2008 2009 2010 2011

Other LNG

$ M

illio

ns

$ M

illio

ns

Projected Distribution Capital ExpendituresProjected Year-End Rate Base

42

WMECO Rate Settlement

Approved by DTE

Rates effective January 1, 2007

$1 million distribution increase, plus pension, other trackers, higher energy costs resulted in 17.8% increase

$3 million distribution increase to be effective January 1, 2008

Expect distribution ROE to remain in 9-10% range through 2008

Next rate case to be filed around 7/1/08

43

WMECO Costs Being Recovered In A Timely Manner




Cost Basis

Distribution 2.756 Rate proceeding Core distribution costs Known & Measurable

RAAC 0.147 JanuaryDiscounts for low income customers

Actual

PPAM 0.261 JanuaryPension and PBOP costs

Actual & projected

Default Service True-Up 0.172 JanuaryAnnual true-up of Default Service

Actual

Subtotal – Distribution 3.336

Transmission 1.062 JanuaryRetail transmission costs

Actual & projected

Transition Charge 0.858 January Stranded costs Actual & projected

C&LM 0.250 LegislationConservation and load management programs

N/A

Renewable 0.050Legislation Funding of state

renewables programN/A


Default Service 11.383 Varies (a)Supplier energy costs, DS adder, and uncollectibles

Projected

Total 16.939

¢

Notes:C&LM – Conservation and Loan ManagementPPAM – Pension/PBOP Adjustment MechanismRAAC – Residential Assistance Adjustment Clause(a) Rate changes every six months except for large commercial and industrial, which changes every three months

44

Financial Forecast

45

Changes In Forecast Assumptions From 2006

Sale of generation for projected $900 million

Issuance of additional equity in 2008 and 2010

FFO in 2006-2010 of $2.4 billion after $220 million of tax payments on generation sale

Net income of $1.22 billion from 2006-2010

Capex of $4.34 billion from 2006-2010

Sale of generation for actual $1.34 billion

No additional equity

FFO in 2007-2011 of $2.9 billion after $428 million of tax payments on generation sale

Net income of $1.65 billion from 2007-2011

Capex of $4.79 billion from 2007-2011

• Higher distribution at CL&P

• Higher distribution, generation at PSNH

• Higher transmission at WMECO

• Lower at Yankee

2006 2007

46

2010 Balance Sheet

$4,646

$116

$3,252


$5,083

$116

$3,540


2006 Forecast 2007 Forecast

58.0%40.6%

1.4%

58.2%40.5%

1.3%

47

NU’s Transformation Producing Solid Results, Prospects

Strategic plan elements announced one year ago are on or ahead of schedule

Financial flexibility is significantly improved Financial performance consistent with projections Transmission business is growing rapidly to meet customer

needs Distribution results expected to improve as reasonable rate case

outcomes are implemented Additional infrastructure needs being identified

48

Glossary

Black Start Charges billed by ISO and paid to generators to maintain the capability to restart without an outside supply of electricity.

D&D Decontamination and decommissioning expense paid to the federal government for the clean-up of nuclear fuel processing sites.

EIA Costs associated with the implementation of measures in support of Connecticut’s Energy Independence Act.

ISO S-1 ISO administrative and general expense relating to scheduling and dispatch charges.

49

Glossary

ISO S-2 ISO administrative and general expense relating to energy administration.

ISO S-3 ISO administrative and general expense relating to reliability administration.

Load Response Charges billed by ISO and paid to load response program participants for reducing their peak electricity demand.

Misc. NEPOOL Misc. NEPOOL expense includes other charges billed by the ISO such as Generation Information System costs, credit insurance charges, and allocations of participants late payments.

50

Glossary

RMR [Reliability Fixed charges per the cost of service Must Run] agreements approved by FERC for generating units in

constrained areas to ensure NEPOOL system reliability and stability, net of any revenues derived when the units are running.

SCR [Special Charges billed by ISO to pay generators thatConstrained run out of merit for transmission voltage Resource] reliability purposes.

SW CT Charges billed by ISO and paid to supply Energy resources and demand responses for improvingResources reliability in Southwest CT.

51

Glossary

VAR Support Charges billed by ISO and paid to generators for system voltage stability. Broken into two components as follows:

• CC [Capacity Cost]

Reimbursement of fixed capital cost incurred by a generator to provide VAR support.

• LOC [Lost Opportunity Cost]

Collects the generator’s lost opportunity in the energy market if directed by ISO to back down output to provide VAR support.

Documents

Rating Agency Meetings New York March 19, 2007