1. Moody’s Investor
March 11, 2004

2. Safe Harbor Provisions
This presentation contains statements that may be considered forward looking statements, such as management’s expectations of future earnings, cash position, sources of funds, coverage ratios, market conditions, customer growth, regulatory action, and the anticipated completion of various projects. These statements speak of the Company’s plans, goals, beliefs, or expectations, refer to estimates or use similar terms. Actual results could differ materially. All forward looking statements included in this presentation are based upon information presently available, and the Company assumes no obligation to update any forward looking statements.

3. What is Northeast Utilities Today? (2003 Revenues)
Regulated Companies Unregulated Companies
An electricity delivery company…
The Connecticut Light and Power Company ($2.7 billion)
Western Massachusetts Electric Company ($390 million)
A natural gas delivery company…
Yankee Gas Services Company ($360 million)
An integrated electric company…
Public Service Company of New Hampshire ($890 million)
A competitive energy marketer…
Select Energy, Inc. ($2.15 billion)
A competitive electricity producer…
Northeast Generation Company ($144 million)
A supplier of energy services…
Northeast Generation Services ($102 million)
Select Energy Services ($150 million)

4. A Closer Look At The Regulated Businesses
CL&P
Customers: 1,169K
Residential 1,058K
Commercial 105K
Industrial 6K
Revenues: $2.7B
Employees: 2,300
4,400 Square Miles
PSNH
Customers: 454K
Residential 388K
Commercial 63K
Industrial 3K
Revenues: $890M
Employees: 1,240
5,445 Square Miles
Yankee Gas
Customers: 192K
Residential 168K
Commercial 22K
Industrial 2K
Revenues: $360M
Employees: 430
1,995 Square Miles
WMECO
Customers: 205K
Residential 185K
Commercial 19K
Industrial 1K
Revenues: $390M
Employees: 410
1,490 Square Miles

5. ENERGY/GENERATION SERVICES
NU Enterprises Organization
MERCHANT ENERGY
ENERGY/GENERATION SERVICES

6. Enterprise Value = $5.1 billion
EQUITY
DEBT
Total Debt: $2.7 billion
CL&P: $921 million
PSNH: $466 million
NU Parent: $479 million (minus $250 million cash)
NGC: $389 million
Yankee Gas: $244 million
WMECO: $199 million
Market Cap: $2.4 billion
NYSE: NU
Share Count: 128 million
Share Price: $19/share
Annualized
Dividend: $0.60/share
CL&P: $116 million perpetual preferred

7. Update on NU’s 2003 Financial Results
EPS
2002
2003
2002
2003
Reported EPS
EPS Excluding
Significant Items

8. 2003 Driven by Improved Competitive Business Results
Earnings in Millions
CL&P*
PSNH/
NAEC
Yankee
Gas
WMECO
NUEI
Merchant
Energy*
NUEI
Services
* Excluding SMD charge

9. 2003 Year-End Capitalization Ratios
Target 55% NU
Consol.
CL&P
PSNH
WMECO
Yankee
Gas
NGC

10. NU System Issues Debt in Six Primary Companies
NU Parent
$479 million unsecured notes
Northeast Generation Co.
$69 million amortizing bonds due 2005
$320 million amortizing bonds due 2026
Yankee Gas Services
$230 million bonds all privately placed

11. NU System Issues Debt in Six Primary Companies
CL&P
$198 million taxable bonds
$424 million tax-exempt debt
$116 million perpetual preferred
PSNH
$407 million tax-exempt bonds
WMECO
$54 million tax-exempt notes
$55 million taxable notes

12. NU Parent Business Profile (Baa1/BBB/BBB)
Business Strategy:
Invest equity in regulated subsidiary infrastructure
Support competitive energy subsidiaries efforts to solidify place as one of the Northeast’s leading energy marketers
Fund above-average dividend growth – current payout ratio about 50 percent
Current liquidity:
$200 million of cash invested in subsidiaries, money markets
$350 million credit line shared with competitive businesses $127 million drawn in cash and letters of credit

13. CL&P Business Profile (A2/A-/A-)
Business Strategy:
Rebuild aging distribution infrastructure ($900 million investment in approved by regulators)
Invest heavily in new transmission facilities to remove Connecticut bottlenecks ($700 million alone for two new lines into southwest Connecticut)
Prevented by current statute from reacquiring generation
Current Liquidity:
$253 million in borrowings from an internal “Money Pool” and accounts receivable facility
Nothing borrowed on the unutilized share of the $300 million revolving credit facility
Application for $250 million of debt securities to be filed this quarter; first new debt since 1997

14. 2003 Was Marked By Important Legislation, Regulation
Public Act signed into law June 25
Transitional standard offer took effect January 1, 2004
Rate cap raised 11.1% for 2004 and beyond
Procurement fee of 0.5/mill began January 1
Additional 0.25 mill incentive can be earned
Could produce $12-$18 million/year of additional revenue
Flow through of all energy related and “federally mandated” costs
Rate decision effective January 1, 2004
Distribution rates set for four years
Transmission rates increased $28 million
Distribution ROE of 9.85%
Endorsement of $900 distribution capital program

15. NU Forecasting Significant Regulated Capital Investment Program
$ Millions - Excluding AFUDC
Actual
Actual
Est.
Est.
Est.
Est.
Est.

16. CL&P Transmission Business: $1 Billion Investment Forecasted
2001
2002
2003
2004
2005
2006
2007
2008
Phase I
(Bethel
to Norwalk)
$200 M
Phase II
(Middletown
to Norwalk)
$496 M *
Siting Process
Construction
Capital Program
$15 M $36 M $66 M $225 M $190 M $160 M $160 M $160 M
* CL&P’s 80% share

17. PSNH Business Profile (A3/BBB+/BBB+)
Business Strategy:
Expand T&D system to meet growing economy
Selectively invest in existing regulated generation
Current Liquidity:
$48 million borrowed from NU Money Pool and from regulated company credit line
Application for $50 million first mortgage bond issue will be filed with regulators this quarter; first new debt since 1991

18. PSNH Update – Current Items
May 2003: PSNH bought out 14 small QF hydro rate orders for $20 million; net savings of $5 million
August 2003: PSNH proposed $70 million conversion of Schiller unit to burn wood (waste)
NHPUC decision somewhat disappointing; changes sought
December 2004: PSNH closed on Connecticut Valley Electric Co. acquisition
$9 million for assets (11,000 customer accounts); $21 million to buy down power contract
December 2004: PSNH filed rate case requesting 2.6% ($21 million) increase
Hearings in early August
Decision will be retroactive to February 2004
February 2004: Energy supply rate rose to 5.36 cents/kwh from 4.6 – cents
Based on estimated costs of owned generation and market purchases of power

19. WMECO Business Profile (A3/BBB+/BBB+)
Business Strategy:
Meet infrastructure needs of modestly growing service territory
Address regulatory items that arise in 2005 at end of transition period
Current Liquidity:
$50 million borrowed from Money Pool and on credit line
Application before state regulators to refinance $48 million legacy nuclear fuel obligation; issued $50 million of senior notes in 2003 to reduce short-term debt

20. Yankee Gas Business Profile (Baa1/BBB+)
Business Strategy:
Expand availability of natural gas in Connecticut
Invest in selected projects to expand system
Develop regulatory strategy to improve return on equity
Current Liquidity:
$4 million borrowed from NU Money Pool
Short-term debt reduced by $75 million private placement of 4.8% bonds in January 2004

21. Distribution Systems Require Increased Investment
$ Millions
Distribution Rate Base
(Electric and Gas)

22. NU Consolidated Summary
Earnings Per Share Projected
Regulated Businesses $1.05 $ $1.20
Competitive Businesses $0.25 $ $0.30
Parent Expense ($0.06) ($0.10)
Consolidated NU $1.24 $ $1.40
*Excludes SMD cost, accounting charge

23. 2004 Competitive Business Net Income Preview by Business Line
Total Projected
2004 Net Income $28-$38 Million
$4 - $7 million
$24 - $31 million
Merchant Energy
Energy/Generation Services

24. What Created Recovery of Competitive Businesses?
Improved portfolio management
Resized retail organization
Improved realized retail margins
Refocused trading as a wholesale support function significantly reducing risk
Improved rainfall levels impacting hydroelectric output
Improved results from generation assets

25. Summary 2004 earnings projection consistent within street consensus
Street range of $1.25 to $1.30
Plans for transmission buildout progressing
Recovery of competitive businesses on track
Financial and credit profile strong and remains a priority
Financings required to buildout regulated companies