Restructuring Roundtable June 12, 2009 Dave Boguslawski Vice President – Transmission Strategy & Operations Northeast Utilities

2 Federal Legislative Focus  Address climate change  Reduce dependence on foreign oil  Stimulate economic recovery in the near term  Invest in key infrastructure for the future FEDERAL PRIORITIES FEDERAL ACTIONS  American Recovery and Reinvestment Act (Stimulus Bill)  Proposed Bills (Reid, Bingaman, Waxman/Markey) Federal Renewable Portfolio Standards (RPS) Transmission  A possible “sea change” in the works involving: Transmission Planning Transmission Siting Transmission Cost-Allocation

3 PLANNING: Two New Approaches Being Considered TOP-DOWN: A single planning authority develops plans for each Interconnection 1 BOTTOM-UP: The regions work collaboratively, starting with their regional plans, to develop a Super-Region Plan or a “National” Plan 2

4 SITING: All Proposals would create a Larger Federal Role  Federal siting for all high voltage lines  Federal siting transmission for renewable energy  Strengthen current federal backstop siting authority

5 COST-ALLOCATION: Proposals would Spread Cost over Broad Areas  Areas defined by FERC either by a predetermined approach or on a project-specific basis  An interconnection-wide tax, and  A national transmission tax,

6 CONCLUSION: Common Interests, Coordinated Actions New England States Have Common Interests Success Requires Coordinated Actions  Show that we can develop regional solutions that align with national energy policy.  Build on the New England Governors' Conference proposal for connecting renewable resources.  Demonstrate that we promptly complete planned projects.  Seek federal funding and other incentives to help renewable project economics.  Keep the costs to the customer in mind by doing the best projects first.  Promote regional planning  Maintain state siting authority  Develop regional renewable generation in a cost-effective manner  Meet state RPS targets and RGGI requirements  Minimize national subsidies to other regions

7 North-South Interface Over 80% of New England’s Load is South of the North-South Interface N H H H Quebec Hydro Quebec plans to develop a portfolio of hydroelectric projects totaling 4,500 MW and integrate 4,000 MW of planned wind power by Newfoundland & Labrador Exploring development of large Hydro facilities New Brunswick Exploring development of 1 or 2 nuclear units Eastern Canadian Development H N W Hydro Nuclear Wind B Biomass General Movement Of Power H W W W B W W H H H Major Transmission System Additions Are Required to Import Power From Northern New England & Canadian Low Carbon Resources

8 Accessing Canadian Resources: Partnership With NSTAR, H-Q Announced in December > Signed Memoranda of Understanding with NSTAR, Hydro Quebec in 2008 to develop project on an exclusive basis ›1200+ MW HVDC line between HQ’s hydroelectric system and New Hampshire ›Power purchase agreement to supply low-carbon energy to New England load > FERC issued declaratory order on May 22 endorsing concept of joint PPA/transmission arrangement ›HVDC line would be participant-funded ›US portion of HVDC line would be owned by NU and NSTAR > Anticipate filing PPA terms with State regulators in 2009 ›Intend to offer PPA broadly to New England load through an open process