NORTHEAST UTILITIES - 10-Q Quarterly Report

____________________________________________________________________________________

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the Quarterly Period Ended March 31, 2005
	OR
[ ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the transition period from ____________ to ____________

Commission File Number	Registrant; State of Incorporation; Address; and Telephone Number	I.R.S. Employer Identification No.

1-5324	NORTHEAST UTILITIES (a Massachusetts voluntary association) One Federal Street Building 111-4 Springfield, Massachusetts 01105 Telephone: (413) 785-5871	04-2147929

0-00404	THE CONNECTICUT LIGHT AND POWER COMPANY (a Connecticut corporation) 107 Selden Street Berlin, Connecticut 06037-1616 Telephone: (860) 665-5000	06-0303850

1-6392	PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE (a New Hampshire corporation) Energy Park 780 North Commercial Street Manchester, New Hampshire 03101-1134 Telephone: (603) 669-4000	02-0181050

0-7624	WESTERN MASSACHUSETTS ELECTRIC COMPANY (a Massachusetts corporation) One Federal Street Building 111-4 Springfield, Massachusetts 01105 Telephone: (413) 785-5871	04-1961130

____________________________________________________________________________________

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days:

	Yes	No

	Ö

Indicate by check mark whether the registrant are accelerated filers (as defined in Rule 12b-2 of the Exchange Act):

	Yes	No

Northeast Utilities	Ö
The Connecticut Light and Power Company		Ö
Public Service Company of New Hampshire		Ö
Western Massachusetts Electric Company		Ö

Indicate the number of share outstanding of each of the issuers’ classes of common stock, as of the latest practicable date:

Company – Class of Stock	Outstanding at April 30, 2005
Northeast Utilities Common stock, $5.00 par value	129,399,819 shares

The Connecticut Light and Power Company Common stock, $10.00 par value	6,035,205 shares

Public Service Company of New Hampshire Common stock, $1.00 par value	301 shares

Western Massachusetts Electric Company Common stock, $25.00 par value	434,653 shares

GLOSSARY OF TERMS
The following is a glossary of frequently used abbreviations or acronyms that are found in this report.

NU COMPANIES, SEGMENTS OR INVESTMENTS:

CL&P	The Connecticut Light and Power Company
CRC	CL&P Receivables Corporation
HWP	Holyoke Water Power Company
NGC	Northeast Generation Company
NGS	Northeast Generation Services Company
NU or the company	Northeast Utilities
NU Enterprises	NU’s competitive subsidiaries comprised of HWP, NGC, NGS, Select Energy, SESI, and Woods Network. For further information, see Note 10, "Segment Information," to the condensed consolidated financial statements.
PSNH	Public Service Company of New Hampshire
Select Energy	Select Energy, Inc. (including its wholly owned subsidiary SENY)
SENY	Select Energy New York, Inc.
SESI	Select Energy Services, Inc.
Utility Group	NU’s regulated utilities comprised of CL&P, PSNH, WMECO, and Yankee Gas. For further information, see Note 10, "Segment Information," to the condensed consolidated financial statements.
WMECO	Western Massachusetts Electric Company
Woods Network	Woods Network Services, Inc.
Yankee	Yankee Energy System, Inc.
Yankee Gas	Yankee Gas Services Company

THIRD PARTIES:

Bechtel	Bechtel Power Corporation
CYAPC	Connecticut Yankee Atomic Power Company
Globix	Globix Corporation
NRG	NRG Energy, Inc.

REGULATORS:

CSC	Connecticut Siting Council
DPUC	Connecticut Department of Public Utility Control
DTE	Massachusetts Department of Telecommunications and Energy
FERC	Federal Energy Regulatory Commission
NHPUC	New Hampshire Public Utilities Commission
SEC	Securities and Exchange Commission

OTHER:
AFUDC	Allowance For Funds Used During Construction
CTA	Competitive Transition Assessment
EPS	Earnings Per Share
FASB	Financial Accounting Standards Board
FMCC	Federally Mandated Congestion Costs
GSC	Generation Service Charge
ISO-NE	New England Independent System Operator
kWh	Kilowatt-Hour
kV	Kilovolt

LICAP	Locational Installed Capacity
LMP	Locational Marginal Pricing
LOCs	Letters of Credit
MW	Megawatts
NU 2004 Form 10-K	The Northeast Utilities and Subsidiaries combined 2004 Form 10-K as filed with the SEC
NYMEX	New York Mercantile Exchange
OCC	Connecticut Office of Consumer Counsel
ROE	Return on Equity
RTO	Regional Transmission Organization
SBC	System Benefits Charge
SCRC	Stranded Cost Recovery Charge
SFAS	Statement of Financial Accounting Standards
TS/DS	Transition Energy Service/Default Energy Service
TSO	Transitional Standard Offer

NORTHEAST UTILITIES AND SUBSIDIARIES
THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
WESTERN MASSACHUSETTS ELECTRIC COMPANY AND SUBSIDIARY

TABLE OF CONTENTS

	Page

PART I — FINANCIAL INFORMATION

ITEM 1 — Condensed Consolidated Financial Statements for the Following Companies:

Northeast Utilities and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited) - March 31, 2005 and December 31, 2004	2

Condensed Consolidated Statements of (Loss)/Income (Unaudited) - Three Months Ended March 31, 2005 and 2004	4

Condensed Consolidated Statements of Cash Flows (Unaudited) - Three Months Ended March 31, 2005 and 2004 (Restated)	5

Notes to Condensed Consolidated Financial Statements (unaudited - all companies)	6

Report of Independent Registered Public Accounting Firm	29

The Connecticut Light and Power Company and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited) - March 31, 2005 and December 31, 2004	32

Condensed Consolidated Statements of Income (Unaudited) - Three Months Ended March 31, 2005 and 2004	34

Condensed Consolidated Statements of Cash Flows (Unaudited) - Three Months Ended March 31, 2005 and 2004	35

Public Service Company of New Hampshire and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited) - March 31, 2005 and December 31, 2004	38

Condensed Consolidated Statements of Income (Unaudited) - Three Months Ended March 31, 2005 and 2004	40

Condensed Consolidated Statements of Cash Flows (Unaudited) - Three Months Ended March 31, 2005 and 2004	41

Western Massachusetts Electric Company and Subsidiary

Condensed Consolidated Balance Sheets (Unaudited) - March 31, 2005 and December 31, 2004	44

Condensed Consolidated Statements of Income (Unaudited) - Three Months Ended March 31, 2005 and 2004	46

Condensed Consolidated Statements of Cash Flows (Unaudited) - Three Months Ended March 31, 2005 and 2004	47

ITEM 2 — Management's Discussion and Analysis of Financial Condition and Results of Operations for the Following Companies:

Northeast Utilities and Subsidiaries		48

The Connecticut Light and Power Company and Subsidiaries		68

Public Service Company of New Hampshire and Subsidiaries		71

Western Massachusetts Electric Company and Subsidiary		73

ITEM 3 — Quantitative and Qualitative Disclosures About Market Risk		75

ITEM 4 — Controls and Procedures		77

	Page

PART II — OTHER INFORMATION

ITEM 1 — Legal Proceedings	78

ITEM 2 — Unregistered Sales of Equity Securities and Use of Proceeds	78

ITEM 6 — Exhibits	79

SIGNATURES	82

NORTHEAST UTILITIES AND SUBSIDIARIES

NORTHEAST UTILITIES AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
	March 31,	December 31,
	2005	2004
	(Thousands of Dollars)
ASSETS

Current Assets:
Cash and cash equivalents	$ 74,021	$ 46,989
Special deposits	48,751	82,584
Investments in securitizable assets	189,679	139,391
Receivables, less provision for uncollectible
accounts of $28,754 in 2005 and $25,325 in 2004	833,321	771,257
Unbilled revenues	145,540	144,438
Taxes receivable	21,871	61,420
Fuel, materials and supplies, at average cost	143,239	185,180
Derivative assets - current	390,723	81,567
Prepayments and other	130,984	154,395
	1,978,129	1,667,221

Property, Plant and Equipment:
Electric utility	5,983,995	5,918,539
Gas utility	795,000	786,545
Competitive energy	909,202	918,183
Other	242,864	241,190
	7,931,061	7,864,457
Less: Accumulated depreciation	2,413,986	2,382,927
	5,517,075	5,481,530
Construction work in progress	437,196	382,631
	5,954,271	5,864,161

Deferred Debits and Other Assets:
Regulatory assets	2,668,010	2,745,874
Goodwill	290,791	319,986
Purchased intangible assets, net	2,817	19,361
Prepaid pension	342,550	352,750
Prior spent nuclear fuel trust, at fair value	49,555	49,296
Derivative assets - long-term	377,498	198,769
Other	415,365	438,416
	4,146,586	4,124,452

Total Assets	$ 12,078,986	$ 11,655,834



The accompanying notes are an integral part of these condensed consolidated financial statements.

NORTHEAST UTILITIES AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
	March 31,		December 31,
	2005		2004
	(Thousands of Dollars)
LIABILITIES AND CAPITALIZATION

Current Liabilities:
Notes payable to banks	$ 267,000	$ 180,000
Long-term debt - current portion	84,157	90,759
Accounts payable	873,600	825,247
Accrued taxes	3,655	-
Accrued interest	58,580	49,449
Derivative liabilities - current	371,767	130,275
Counterparty deposits	95,648	57,650
Other	197,892	230,022
	1,952,299	1,563,402

Rate Reduction Bonds	1,496,152	1,546,490

Deferred Credits and Other Liabilities:
Accumulated deferred income taxes	1,348,216	1,434,403
Accumulated deferred investment tax credits	98,203	99,124
Deferred contractual obligations	393,178	413,056
Regulatory liabilities	1,130,671	1,069,842
Derivative liabilities - long-term	325,500	58,737
Other	264,046	267,895
	3,559,814	3,343,057

Capitalization:
Long-Term Debt	2,783,144	2,789,974

Preferred Stock of Subsidiary - Non-Redeemable	116,200	116,200

Common Shareholders' Equity:
Common shares, $5 par value - authorized
225,000,000 shares; 151,463,375 shares issued
and 129,367,389 shares outstanding in 2005 and
151,230,981 shares issued and 129,034,442 shares
outstanding in 2004	757,317	756,155
Capital surplus, paid in	1,118,944	1,116,106
Deferred contribution plan - employee stock ownership plan	(56,916)	(60,547)
Retained earnings	706,619	845,343
Accumulated other comprehensive income/(loss)	5,494	(1,220)
Treasury stock, 19,636,364 shares in 2005
and 19,580,065 shares in 2004	(360,081)	(359,126)
Common Shareholders' Equity	2,171,377	2,296,711
Total Capitalization	5,070,721	5,202,885

Commitments and Contingencies (Note 5)

Total Liabilities and Capitalization	$ 12,078,986	$ 11,655,834




The accompanying notes are an integral part of these condensed consolidated financial statements.

NORTHEAST UTILITIES AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS)/INCOME
(Unaudited)
	Three Months Ended
	March 31,
	2005	2004
	(Thousands of Dollars,
	except share information)


Operating Revenues	$ 2,264,812	$ 1,838,287

Operating Expenses:
Operation -
Fuel, purchased and net interchange power	1,625,701	1,177,312
Other	278,815	241,946
Restructuring and impairment charges	234,449	-
Maintenance	41,703	41,789
Depreciation	57,998	54,573
Amortization	23,093	29,291
Amortization of rate reduction bonds	45,790	42,999
Taxes other than income taxes	77,156	77,589
Total operating expenses	2,384,705	1,665,499
Operating (Loss)/Income	(119,893)	172,788

Interest Expense:
Interest on long-term debt	38,449	32,738
Interest on rate reduction bonds	23,038	25,695
Other interest	4,342	4,347
Interest expense, net	65,829	62,780
Other Income, Net	2,041	1,687
(Loss)/Income Before Income Tax Expense/(Benefit)	(183,681)	111,695
Income Tax (Benefit)/Expense	(67,352)	42,863
(Loss)/Income Before Preferred Dividends of Subsidiary	(116,329)	68,832
Preferred Dividends of Subsidiary	1,390	1,390
Net (Loss)/Income	$ (117,719)	$ 67,442

Basic and Fully Diluted (Loss)/Earnings Per Common Share	$ (0.91)	$ 0.53

Basic Common Shares Outstanding (average)	129,278,505	127,879,766

Fully Diluted Common Shares Outstanding (average)	129,278,505	128,061,086


The accompanying notes are an integral part of these condensed consolidated financial statements.

NORTHEAST UTILITIES AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Three Months Ended
	March 31,
		2004
	2005	(Restated)*
	(Thousands of Dollars)
Operating Activities:
Net (loss)/income	$ (117,719)	$ 67,442
Adjustments to reconcile to net cash flows
provided by operating activities:
Non-cash after-tax restructuring and impairment charges	141,150	-
Bad debt expense	9,029	5,795
Depreciation	57,998	54,573
Deferred income taxes and investment tax credits, net	(16,306)	20,028
Amortization	23,093	29,291
Amortization of rate reduction bonds	45,790	42,999
Amortization of recoverable energy costs	1,094	10,189
Pension expense	8,030	2,659
Regulatory overrecoveries	(26,256)	13,669
Derivative assets	(43,820)	(1,152)
Derivative liabilities	27,344	(20,372)
Other sources of cash	12,988	9,885
Other uses of cash