NSTAR (NYSE: NST) today reported adjusted earnings of $275.9 million, or $2.65 per common share, for the year 2011 and $269.5 million, or $2.56 per share in 2010, an increase of 3.5%. These earnings exclude merger-related costs of $6.4 million, or $0.06 per share, and $6 million, or $0.05 per share, in 2011 and 2010, respectively, and 2010 also excludes non-recurring items as described in the tables enclosed with this report. Higher transmission revenues were a significant factor in this earnings increase. GAAP earnings were $269.4 million, or $2.59 per share, for the year 2011, compared to $352.9 million, or $3.35 per share reported for the same period in 2010.
Chairman, President and Chief Executive Officer Thomas J. May said, “This past year was one for the record books as two unprecedented storms battered our region within a nine-week period. NSTAR employees safely completed an extraordinary amount of restoration work, bringing our customers’ power back faster than any other major utility in the region. We are proud of the very high service quality we provide our customers. Recent J.D. Power Customer Satisfaction results ranked our gas company number one and our electric company ranking was among the best in the Northeast region. Customers have certainly noticed our strong commitment to service reliability with these very favorable survey results.”
“During the year, we secured several approvals required to complete our merger with Northeast Utilities. We are awaiting merger approval from the Massachusetts Department of Public Utilities. On January 18
, the Connecticut Public Utility Regulatory Authority (PURA) reversed its earlier decisions in which it had determined that it did not have jurisdiction over the transaction. On January 19
, we filed our merger approval application with PURA. A day later, PURA accepted the application and issued a procedural schedule that includes a final decision date of April 2
. We will work very diligently with PURA to meet the deadlines established in the schedule to ensure a timely completion of the proceeding. The transaction is expected to generate significant benefits to customers as evidenced by the $784 million in anticipated net cost savings,” said May.
The company also reported adjusted earnings for the fourth quarter of $55.2 million, or $0.53 per share, for the fourth quarter of 2011 and $51.3 million, or $0.49 per share in 2010, an increase of $0.04. These earnings exclude merger-related costs of $0.8 million, or $0.01 per share, and $6 million, or $0.05 per share, in the fourth quarter of 2011 and 2010, respectively. In addition, the fourth quarter of 2010 excludes a positive true-up adjustment to the gain from the sale of the district energy business. GAAP earnings were $54.3 million, or $0.52 per common share, for the fourth quarter of 2011, compared to $46.7 million, or $0.45 per share reported for the same period in 2010.