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<PAGE>
File No. 1-15995
United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM U-3A-2
Statement by Holding Company Claiming Exemption Under Rule U-3A-2
from the Provisions of the Public Utility Holding Company Act of 1935
To Be Filed Annually Prior to March 1
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
UIL HOLDINGS CORPORATION
hereby files with the Securities and Exchange Commission, pursuant to Rule 2,
its statement claiming exemption as a holding company from the provisions of the
Public Utility Holding Company Act of 1935, and submits the following
information:
1. NAME, STATE OF ORGANIZATION, LOCATION AND NATURE OF BUSINESS OF CLAIMANT AND
EVERY SUBSIDIARY THEREOF, OTHER THAN ANY EXEMPT WHOLESALE GENERATOR (EWG) OR
FOREIGN UTILITY COMPANY IN WHICH CLAIMANT DIRECTLY OR INDIRECTLY HOLDS AN
INTEREST.
UIL Holdings Corporation ("UIL Holdings") was incorporated under the
laws of the State of Connecticut and is a holding company organized to acquire
and hold the securities of other corporations. On July 20, 2000, UIL Holdings,
its wholly-owned subsidiary, United Mergings, Inc. ("United Mergings") and The
United Illuminating Company ("UI") completed a statutory merger and share
exchange (the "Merger and Share Exchange"), pursuant to which UI was merged with
and into United Mergings and the outstanding common stock, no par value, of UI
was exchanged on a share-for-share basis for shares of UIL Holdings common
stock, no par value. As a result of the Merger and Share Exchange, UI became,
and is now, a wholly-owned subsidiary of UIL Holdings.
UI was incorporated under the laws of the State of Connecticut and is a
wholly-owned subsidiary of UIL Holdings. UI is an operating electric public
utility engaged in the production, purchase, transmission, distribution and sale
of electricity for residential, commercial and industrial purposes in a service
area of about 335 square miles in the southwestern part of the State of
Connecticut.
Following the Merger and Share Exchange, UI transferred its stock
in United Resources, Inc. to UIL Holdings.
The information contained in this statement is furnished taking into
account the Merger and Share Exchange and the transfer of UI's stock in United
Resources, Inc. to UIL Holdings.
<PAGE>
United Resources, Inc. ("URI") was incorporated under the laws of the
State of Connecticut and is a wholly-owned subsidiary of UIL Holdings. URI
serves as the parent corporation for several unregulated businesses, each of
which is incorporated separately in Connecticut.
A. American Payment Systems, Inc. ("APS") was incorporated under the laws
of the State of Connecticut and is a wholly-owned subsidiary of URI. APS manages
a national network of agents for the processing of bill payments made by
customers of UI and other utilities.
B. Xcelecom, Inc. ("Xcelecom") was incorporated under the laws of
the State of Connecticut and is a wholly-owned subsidiary of URI. Xcelecom
serves as the parent company for several corporations that are engaged in
electrical contracting, fiber optic cabling and computer system installation
businesses.
1. Precision Power, Inc. ("Precision Power") was incorporated under
the laws of the State of Connecticut and is a wholly-owned subsidiary of
Xcelecom. Precision Power provides power-related equipment and services to
the owners of commercial buildings, government buildings and industrial
facilities in Connecticut.
2. Allan Electric Co., Inc. ("Allan Electric") was incorporated
under the laws of the State of New Jersey and is a wholly-owned subsidiary of
Xcelecom. Allan Electric operates an electrical contracting business and is
engaged (among other things) in the business of fiber optic cabling in New
Jersey.
3. The DataStore Incorporated ("Datastore") was organized under the
laws of the State of New Jersey and is a wholly-owned subsidiary of Xcelecom.
DataStore provides and installs computer systems for businesses in New Jersey
and Pennsylvania.
4. Orlando Diefenderfer Electrical Contractors, Inc. ("Orlando") was
organized under the laws of the Commonwealth of Pennsylvania and is a
wholly-owned subsidiary of Xcelecom. Orlando operates an electrical
contracting business and is engaged (among other things) in the business of
fiber optic cabling in Pennsylvania.
5. Thermal Energies, Inc. ("TEI") was incorporated under the laws of
the State of Connecticut and is a wholly-owned subsidiary of Xcelecom. TEI
owns and operates heating and cooling energy centers in commercial and
institutional buildings, and is participating in the development of district
heating and cooling facilities in the downtown New Haven, Connecticut, area,
including the energy center for an office tower and participation as a 52%
partner in the energy center for a city hall and office tower complex.
6. Precision Constructors, Inc. ("Precision Constructors") was
incorporated under the laws of the State of Connecticut, as a wholly-owned
subsidiary of Xcelecom, to operate an electrical contracting business in
Connecticut.
2
<PAGE>
C. United Capital Investments, Inc. ("UCI") was incorporated under the
laws of the State of Connecticut and is a wholly-owned subsidiary of URI. UCI
participates in unregulated non-utility business ventures that complement UI's
electric transmission and distribution business.
D. United Bridgeport Energy, Inc. ("UBE") was incorporated under the
laws of the State of Connecticut and is a wholly-owned subsidiary of URI. UBE is
participating in the ownership of an Exempt Wholesale Generator ("EWG") merchant
wholesale electric generating facility located in Bridgeport, Connecticut.
2. A BRIEF DESCRIPTION OF THE PROPERTIES OF CLAIMANT AND EACH OF ITS
SUBSIDIARY PUBLIC UTILITY COMPANIES USED FOR THE GENERATION, TRANSMISSION, AND
DISTRIBUTION OF ELECTRIC ENERGY FOR SALE, OR FOR THE PRODUCTION, TRANSMISSION,
AND DISTRIBUTION OF NATURAL OR MANUFACTURED GAS, INDICATING THE LOCATION OF
PRINCIPAL GENERATING PLANTS, TRANSMISSION LINES, PRODUCING FIELDS, GAS
MANUFACTURING PLANTS, AND ELECTRIC AND GAS DISTRIBUTION FACILITIES, INCLUDING
ALL SUCH PROPERTIES WHICH ARE OUTSIDE THE STATE IN WHICH CLAIMANT AND ITS
SUBSIDIARIES ARE ORGANIZED AND ALL TRANSMISSION OR PIPELINES WHICH DELIVER OR
RECEIVE ELECTRIC ENERGY OR GAS AT THE BORDERS OF SUCH STATE.
UIL Holdings does not directly own any property used for the
generation, transmission and distribution of electric energy for sale, or for
the production, transmission and distribution of natural or manufactured gas.
UI owns and operates an electric transmission system consisting of 102
circuit miles of overhead lines and approximately 17 circuit miles of
underground lines, all operated at 345 KV or 115 KV and located within or
immediately adjacent to the territory served by UI in the southwestern part of
the State of Connecticut. The transmission lines interconnect electric
generating stations and are part of the New England transmission grid through
connections with the transmission lines of The Connecticut Light and Power
Company. A major portion of UI's transmission lines is constructed on a railroad
right of way of the Connecticut Department of Transportation pursuant to a
Transmission Line Agreement that expired in May 2000 but is being extended.
UI owns and operates 25 bulk electric supply substations with a
capacity of 1,756,300 KVA and 32 distribution substations with a capacity of
153,520 KVA. UI owns and operates 3,170 pole-line miles of overhead distribution
lines and 130 conduit-bank miles of underground distribution lines. All of these
facilities are located within the State of Connecticut.
UI, as of December 31, 1999, owned or had ownership interest in the
following generating stations:
<TABLE>
<CAPTION>
GENERATING SOURCE LOCATION MAX CLAIMED CAPABILITY, MW UI ENTITLEMENT SHARE MW
----------------- -------- -------------------------- -------------- --------
CAPABILITY, MW (%)
--------------
<S> <C> <C> <C> <C>
UI OPERATED:
English Station 7 New Haven, CT 34.06 100 34.06
English Station 8 New Haven, CT 38.49 100 38.49
</TABLE>
3
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
OPERATED BY OTHER
UTILITIES:
Millstone Unit 3 Waterford, CT 1154.56 3.685 42.55
Seabrook Unit 1 Seabrook, NH 1161.00 17.50 203.18
</TABLE>
English Station 7 and 8 were placed on deactivated reserve status, effective
January 1, 1992. On March 2, 2000, UI agreed to sell English station to
Quinnipiac Energy, LLC, a privately-owned independent power producer. It is
anticipated that this transaction will be consummated in the near future. Absent
this sale, it is likely that English Station will be demolished and removed.
In April 1998, Connecticut enacted a massive and complex statute
(the "Restructuring Act") to restructure the State's regulated electric
utility industry. On October 1, 1998, in its "unbundling plan" filing with
the Connecticut Department of Public Utility Control (the "DPUC") under the
Restructuring Act, and in other regulatory dockets, UI stated that it plans
to divest its nuclear generation ownership interests in Millstone Unit 3 and
Seabrook Unit 1 by the end of 2003, in accordance with the Restructuring Act.
In April, 2000, the DPUC approved UI's plan for divesting its ownership
interest in Millstone Unit 3 by participation with other owners in an auction
process conducted by J.P. Morgan & Co. This process concluded on August 7,
2000 with the announcement that Dominion Resources, Inc. will purchase the
ownership interests of UI and others in Millstone Unit 3. It is currently
estimated that obtaining requisite regulatory approvals of the auction
results and consummating the sale may require an additional eight months. The
divestiture process for Seabrook Unit 1 has not yet been determined.
The electric generating stations, UI's general offices, operating
headquarters and service centers, and the electric distribution and electric
transmission facilities owned by UI, are all located in Connecticut, except
as otherwise noted.
In August 1990, UI sold to and leased back from an owner trust
established for the benefit of an institutional investor a portion of its 17.5%
ownership interest in Seabrook Unit 1. This portion of the unit is subject to
the lien of the first mortgage granted by the owner trustee.
3. THE FOLLOWING INFORMATION FOR THE LAST CALENDAR YEAR WITH RESPECT TO
CLAIMANT AND EACH OF ITS SUBSIDIARY PUBLIC UTILITY COMPANIES:
(a) Number of kwh. of electric energy sold (at retail or
wholesale), and Mcf. of natural or manufactured gas distributed at retail.
<TABLE>
<CAPTION>
ELECTRICITY GAS
<S> <C> <C>
UIL Holdings None None
UI 6,661,916,000 None
</TABLE>
(b) Number of kwh. of electric energy and Mcf. of natural or
manufactured gas distributed at retail outside the State in which each such
company is organized.
<TABLE>
<CAPTION>
ELECTRICITY GAS
<S> <C> <C>
UIL Holdings None None
UI None None
</TABLE>
4
<PAGE>
(c) Number of kwh. of electric energy and Mcf. of natural or
manufactured gas sold at wholesale outside the State in which each such company
is organized, or at the State line.
<TABLE>
<CAPTION>
ELECTRICITY GAS
<S> <C> <C>
UIL Holdings None None
UI 929,493,000 None
</TABLE>
(d) Number of kwh. of electric energy and Mcf. of natural or
manufactured gas purchased outside the State in which each such company is
organized or at the State line.
<TABLE>
<CAPTION>
ELECTRICITY GAS
<S> <C> <C>
UIL Holdings None None
UI 857,279,000 None
</TABLE>
4. THE FOLLOWING INFORMATION FOR THE REPORTING PERIOD WITH RESPECT TO
CLAIMANT AND EACH INTEREST IT HOLDS DIRECTLY OR INDIRECTLY IN AN EWG OR A
FOREIGN UTILITY COMPANY, STATING MONETARY AMOUNTS IN UNITED STATES DOLLARS:
(a) Name, location, business address and description of the
facilities used by the EWG or foreign utility company for the generation,
transmission and distribution of electric energy for sale or for the
distribution at retail of natural or manufactured gas.
Bridgeport Energy LLC, 10 Atlantic Street, Bridgeport,
Connecticut 06604. This facility is a 520 MW combined-cycle generator.
(b) Name of each system company that holds an interest in such EWG
or foreign utility company; and description of the interest held.
United Bridgeport Energy, Inc. ("UBE"), a wholly-owned
subsidiary of URI, holds a 33.33% ownership interest in Bridgeport Energy LLC,
the owner and operator of the facility.
(c) Type and amount of capital invested, directly or indirectly,
by the holding company claiming exemption; any direct or indirect guarantee of
the security of the EWG or foreign utility company by the holding company
claiming exemption; and any debt or other financial obligation for which there
is recourse, directly or indirectly, to the holding company claiming exemption
or another system company, other than the EWG or foreign utility company.
The capital invested by UBE in the EWG is approximately
$78,252,000, of which approximately $54,783,000 is debt and approximately
$23,469,000 is equity. Neither UIL Holdings nor any direct or indirect
subsidiary of UIL Holdings has signed any direct or indirect guarantee of any
security of the EWG. There is no direct or indirect recourse to UIL Holdings or
any other system company for any financial obligation of the EWG.
5
<PAGE>
(d) Capitalization and earnings of the EWG or foreign utility
company during the reporting period.
The capitalization of the EWG on December 31, 1999 was
approximately $208,605,548; the earnings of the EWG during the fiscal period
ending December 31, 1999 were approximately $8,150,000.
(e) Identify any service, sales or construction contract(s)
between the EWG or foreign utility company and a system company, and describe
the services to be rendered or goods sold and fees or revenues under such
agreement(s).
The EWG has entered into a Substation Maintenance Agreement
with Precision Power, Inc. ("PPI"), a wholly-owned indirect subsidiary of URI,
pursuant to which PPI will provide maintenance services to the EWG in exchange
for approximately $40,000 per year.
6
<PAGE>
The above-named claimant has caused this statement to be duly executed
on its behalf by its authorized officer on this 10th day of August, 2000.
UIL HOLDINGS CORPORATION
By: /s/ Robert L. Fiscus
-------------------------------------------
Robert L. Fiscus
Vice Chairman of the Board of Directors and
Chief Financial Officer
(Corporate seal)
Attest:
/s/ Robert L. Fiscus
------------------------------
Robert L. Fiscus
Secretary
Name, title and address of officer to whom
notices and correspondences concerning
this statement should be addressed:
Robert L. Fiscus
Vice Chairman of the Board of Directors,
Chief Financial Officer, Treasurer and Secretary
157 Church Street
New Haven, Connecticut 06510
7
<PAGE>
EXHIBIT A
See attached consolidating statement of income and surplus of the claimant and
its subsidiary companies for the last calendar year, together with a
consolidating balance sheet of claimant and its subsidiary companies as of the
close of such calendar year.
8
<PAGE>
THE UNITED ILLUMINATING COMPANY
CONSOLIDATING STATEMENT OF INCOME
For the Year Ended December 31, 1999
Thousands of Dollars
<TABLE>
<CAPTION>
The United Precision Power Thermal Energies
Illuminating Company Inc. Inc.
---------------------------------------- ----------------
<S> <C> <C> <C>
Operating Revenues $679,975
----------------- --------------- ----------------
Operating Expenses
Operation
Fuel and energy 159,403
Capacity purchased 33,873
Other 148,060
Maintenance 37,987
Depreciation 57,351
Amortization of cancelled nuclear project, deferred return and
regulatory tax asset 36,393
Income taxes 66,564
Other taxes 47,140
----------------- --------------- ----------------
Total 586,771 0 0
----------------- --------------- ----------------
Operating Income 93,204 0 0
----------------- --------------- ----------------
Other Income and (Deductions)
Allowance for equity funds used during construction 575
Other-net 3,338 (5,023) (513)
Non-operating income taxes 3,143 2,035 208
----------------- --------------- ----------------
Total 7,056 (2,988) (305)
----------------- --------------- ----------------
Income (Loss) Before Interest Charges 100,260 (2,988) (305)
----------------- --------------- ----------------
Interest Charges
Interest on long-term debt 42,104
Interest on Seabrook obligation bonds owned by the company (6,844)
Dividend requirement of mandatorily redeemable securities 4,861
Other interest 4,927
Allowance for borrowed funds used during construction (1,660)
----------------- --------------- ----------------
43,388 0 0
Amortization of debt expense and redemption premiums 2,392
----------------- --------------- ----------------
Net Interest Charges 45,780 0 0
----------------- --------------- ----------------
Net Income (Loss) 54,480 (2,988) (305)
Discount on preferred stock redemptions 53
Dividends on preferred stock 66
----------------- --------------- ----------------
Income (Loss) Applicable to Common Stock $ 54,361 $(2,988) $(305)
================= =============== ================
</TABLE>
<TABLE>
<CAPTION>
United Resources United Bridgeport
Inc. Energy Inc.
------------------ --------------
<S> <C> <C>
Operating Revenues
------------------ --------------
Operating Expenses
Operation
Fuel and energy
Capacity purchased
Other
Maintenance
Depreciation
Amortization of cancelled nuclear project, deferred return and
regulatory tax asset
Income taxes
Other taxes
------------------ --------------
Total 0 0
------------------ --------------
Operating Income 0 0
------------------ --------------
Other Income and (Deductions)
Allowance for equity funds used during construction
Other-net (4,554) 2,969
Non-operating income taxes 1,845 (1,203)
------------------ --------------
Total (2,709) 1,766
------------------ --------------
Income (Loss) Before Interest Charges (2,709) 1,766
------------------ --------------
Interest Charges
Interest on long-term debt
Interest on Seabrook obligation bonds owned by the company
Dividend requirement of mandatorily redeemable securities
Other interest
Allowance for borrowed funds used during construction
------------------ --------------
0 0
Amortization of debt expense and redemption premiums
------------------ --------------
Net Interest Charges 0 0
------------------ --------------
Net Income (Loss) (2,709) 1,766
Discount on preferred stock redemptions
Dividends on preferred stock
------------------ --------------
Income (Loss) Applicable to Common Stock $ (2,709) $1,766
================== ==============
</TABLE>
<TABLE>
<CAPTION>
American Payment United Capital
Systems, Inc. Funding Partnership
--------------- -------------------
<C> <C>
<S>
Operating Revenues --------------- -------------------
Operating Expenses
Operation
Fuel and energy
Capacity purchased
Other
Maintenance
Depreciation
Amortization of cancelled nuclear project, deferred return and
regulatory tax asset
Income taxes
Other taxes --------------- -------------------
0 0
Total --------------- -------------------
0 0
Operating Income --------------- -------------------
Other Income and (Deductions)
Allowance for equity funds used during construction
Other-net 2,613 4,861
Non-operating income taxes (1,066)
--------------- -------------------
Total 1,547 4,861
--------------- -------------------
Income (Loss) Before Interest Charges 1,547 4,861
--------------- -------------------
Interest Charges
Interest on long-term debt
Interest on Seabrook obligation bonds owned by the company 4,813
Dividend requirement of mandatorily redeemable securities
Other interest
Allowance for borrowed funds used during construction --------------- -------------------
0 4,813
Amortization of debt expense and redemption premiums --------------- -------------------
0 4,813
Net Interest Charges --------------- -------------------
Net Income (Loss) 1,547 48
Discount on preferred stock redemptions
Dividends on preferred stock --------------- -------------------
$1,547 $48
Income (Loss) Applicable to Common Stock =============== ===================
</TABLE>
<TABLE>
<CAPTION>
Allan
Electric Co. Inc. Consolidating Consolidated
------------------- --------------- ------------------
<S> <C> <C> <C>
Operating Revenues $ 679,975
------------------- --------------- ------------------
Operating Expenses
Operation
Fuel and energy 159,403
Capacity purchased 33,873
Other (351) 147,709
Maintenance 37,987
Depreciation 57,351
Amortization of cancelled nuclear project, deferred return and
regulatory tax asset 36,393
Income taxes 66,564
Other taxes 47,140
------------------- --------------- ------------------
Total 0 (351) 586,420
------------------- --------------- ------------------
Operating Income 0 351 93,555
------------------- --------------- ------------------
Other Income and (Deductions)
Allowance for equity funds used during construction 575
Other-net 731 (5,260) (838)
Non-operating income taxes (298) 4,664
------------------- --------------- ------------------
Total 433 (5,260) 4,401
------------------- --------------- ------------------
Income (Loss) Before Interest Charges 433 (4,909) 97,956
------------------- --------------- ------------------
Interest Charges
Interest on long-term debt 42,104
Interest on Seabrook obligation bonds owned by the company (6,844)
Dividend requirement of mandatorily redeemable securities (4,861) 4,813
Other interest 4,927
Allowance for borrowed funds used during construction (1,660)
------------------- --------------- ------------------
0 (4,861) 43,340
Amortization of debt expense and redemption premiums 2,392
------------------- --------------- ------------------
Net Interest Charges 0 (4,861) 45,732
------------------- --------------- ------------------
Net Income (Loss) 433 (48) 52,224
Discount on preferred stock redemptions 53
Dividends on preferred stock 66
------------------- --------------- ------------------
Income (Loss) Applicable to Common Stock $ 433 $ (48) $ 52,105
=================== =============== ==================
</TABLE>
<PAGE>
THE UNITED ILLUMINATING COMPANY
CONSOLIDATING BALANCE SHEET
December 31, 1999
Thousands of Dollars
ASSETS
<TABLE>
<CAPTION>
The United Precision Power
Illuminating Company Inc.
-------------------------- ---------------------
<S> <C> <C>
Utility Plant at Original Cost
In service $1,007,065
Less, accumulated provision for depreciation 537,270
-------------------------- ---------------------
469,795 0
Construction work in progress 25,708
Nuclear fuel 21,101
-------------------------- ---------------------
Net Utility Plant 516,604 0
-------------------------- ---------------------
Other Property and Investments
Investment in generation facility
Nuclear decommissioning trust fund assets 28,255
Other 39,237 9,168
-------------------------- ---------------------
67,493 9,168
Current Assets
Unrestricted cash and temporary cash investments 34,969 796
Restricted cash 2,339
Accounts receivable
Customers, less allowance for doubtful
accounts of $1,800 56,057
Other, less allowance for doubtful
accounts of $508 124,722 3,505
Accrued utility revenues 25,019
Fuel, materials and supplies, at average cost 9,126
Prepayments 2,780 27
Other 402
-------------------------- ---------------------
Total 255,012 4,729
-------------------------- ---------------------
Deferred Charges
Unamortized debt issuance expenses 8,688
Other 1,163 23
-------------------------- ---------------------
Total 9,851 23
-------------------------- ---------------------
Regulatory Assets
Nuclear plant investments-above market 518,268
Income taxes due principally to book-tax
differences 166,965
Long-term purchase power contracts - above market 144,406
Connecticut Yankee 37,013
Displaced worker protection costs 5,746
Unamortized redemption costs 22,314
Unamortized cancelled nuclear project 8,780
Uranium enrichment decommissioning costs 1,040
Other 5,453
-------------------------- ---------------------
Total 909,985 0
-------------------------- ---------------------
$1,758,945 $13,920
========================== =====================
</TABLE>
<TABLE>
<CAPTION>
Thermal Energies United Resources United Bridgeport
Inc. Inc. Energy Inc.
---------------------- ---------------------- -----------------
<S> <C> <C> <C>
Utility Plant at Original Cost
In service
Less, accumulated provision for depreciation
---------------------- ---------------------- -----------------
0 0 0
Construction work in progress
Nuclear fuel
---------------------- ---------------------- -----------------
Net Utility Plant 0 0 0
---------------------- ---------------------- -----------------
Other Property and Investments
Investment in generation facility 83,494
Nuclear decommissioning trust fund assets
Other 1,103 120,681 10,500
---------------------- ---------------------- -----------------
1,103 120,681 93,994
Current Assets
Unrestricted cash and temporary cash investments 194 468 5
Restricted cash
Accounts receivable
Customers, less allowance for doubtful
accounts of $1,800
Other, less allowance for doubtful
accounts of $508 216 5,230
Accrued utility revenues
Fuel, materials and supplies, at average cost
Prepayments 4
Other
---------------------- ---------------------- -----------------
Total 414 5,698 5
---------------------- ---------------------- -----------------
Deferred Charges
Unamortized debt issuance expenses
Other 12 100
---------------------- ---------------------- -----------------
Total 12 100 0
---------------------- ---------------------- -----------------
Regulatory Assets
Nuclear plant investments-above market
Income taxes due principally to book-tax
differences
Long-term purchase power contracts - above market
Connecticut Yankee
Displaced worker protection costs
Unamortized redemption costs
Unamortized cancelled nuclear project
Uranium enrichment decommissioning costs
Other
---------------------- ---------------------- -----------------
Total 0 0 0
---------------------- ---------------------- -----------------
$1,530 $126,479 $93,999
====================== ====================== =================
</TABLE>
<TABLE>
<CAPTION>
American Payment United Capital Allan
Systems, Inc. Funding Partnership Electric Co. Inc.
------------------ ------------------- --------------------
<S> <C> <C> <C>
Utility Plant at Original Cost
In service
Less, accumulated provision for depreciation
------------------ ------------------- --------------------
0 0 0
Construction work in progress
Nuclear fuel
------------------ ------------------- --------------------
Net Utility Plant 0 0 0
------------------ ------------------- --------------------
Other Property and Investments
Investment in generation facility
Nuclear decommissioning trust fund assets
Other 4,668 543
------------------ ------------------- --------------------
4,668 - 543
Current Assets
Unrestricted cash and temporary cash investments 1,986 681
Restricted cash 26,884
Accounts receivable
Customers, less allowance for doubtful
accounts of $1,800
Other, less allowance for doubtful
accounts of $508 36,147 50,506 7,157
Accrued utility revenues
Fuel, materials and supplies, at average cost 132
Prepayments 238 7
Other 4,399
------------------ ------------------- --------------------
Total 65,255 50,506 12,376
------------------ ------------------- --------------------
Deferred Charges
Unamortized debt issuance expenses
Other (35) 4,837
------------------ ------------------- --------------------
Total (35) 0 4,837
------------------ ------------------- --------------------
Regulatory Assets
Nuclear plant investments-above market
Income taxes due principally to book-tax
differences
Long-term purchase power contracts - above market
Connecticut Yankee
Displaced worker protection costs
Unamortized redemption costs
Unamortized cancelled nuclear project
Uranium enrichment decommissioning costs
Other
------------------ ------------------- --------------------
Total 0 0 0
------------------ ------------------- --------------------
$69,888 $50,506 $17,757
================== =================== ====================
</TABLE>
<TABLE>
<CAPTION>
Consolidating Consolidated
------------------- -------------------
<S> <C> <C>
Utility Plant at Original Cost
In service $1,007,065
Less, accumulated provision for depreciation (4,861) 532,409
------------------- -------------------
4,861 474,656
Construction work in progress $25,708
Nuclear fuel 21,101
------------------- -------------------
Net Utility Plant 4,861 521,465
------------------- -------------------
Other Property and Investments
Investment in generation facility 83,494
Nuclear decommissioning trust fund assets 28,255
Other (165,803) 20,098
------------------- -------------------
(165,803) 131,847
Current Assets
Unrestricted cash and temporary cash investments 39,099
Restricted cash 29,223
Accounts receivable
Customers, less allowance for doubtful
accounts of $1,800 56,057
Other, less allowance for doubtful
accounts of $508 (173,871) 53,612
Accrued utility revenues 25,019
Fuel, materials and supplies, at average cost 9,259
Prepayments 3,056
Other 4,801
------------------- -------------------
Total (173,871) 220,126
------------------- -------------------
Deferred Charges
Unamortized debt issuance expenses 8,688
Other 6,099
------------------- -------------------
Total 0 14,787
------------------- -------------------
Regulatory Assets
Nuclear plant investments-above market 518,268
Income taxes due principally to book-tax
differences 166,965
Long-term purchase power contracts - above market 144,406
Connecticut Yankee 37,013
Displaced worker protection costs 5,746
Unamortized redemption costs 22,314
Unamortized cancelled nuclear project 8,780
Uranium enrichment decommissioning costs 1,040
Other 5,453
------------------- -------------------
Total 0 909,985
------------------- -------------------
$(334,813) $1,798,210
=================== ===================
</TABLE>
<PAGE>
THE UNITED ILLUMINATING COMPANY
CONSOLIDATING BALANCE SHEET
December 31, 1999
Thousands of Dollars
CAPITALIZATION AND LIABILITIES
<TABLE>
<CAPTION>
The United Precision Power
Illuminating Company Inc.
-------------------------- ---------------------
<S> <C> <C>
Capitalization
Common stock equity
Common stock $292,006 $ 1
Paid-in capital 2,253 15,528
Capital stock expense (2,170)
Unearned employee stock ownership plan equity (9,261)
Retained earnings 197,000 (6,005)
-------------------------- ---------------------
479,828 9,524
Preferred stock
Company-obligated mandatorily redeemable
securities of subsidiary holding solely parent debentures
Long-term debt
Long-term debt 656,147
Investment in Seabrook obligation bonds (87,413)
-------------------------- ---------------------
Net long-term debt 568,734 0
Total 1,048,562 9,524
-------------------------- ---------------------
Noncurrent Liabilities
Purchase power contract obligation 144,406
Connecticut Yankee contract obligation 27,056
Pensions accrued 19,026
Nuclear decommissioning obligation 28,255
Obligations under capital leases 16,131
Other 10,394
-------------------------- ---------------------
Total 245,268 0
-------------------------- ---------------------
Current Liabilities
Current portion of long-term debt 25,000
Notes payable 17,000
Accounts payable 51,935 1,156
Accounts payable-APS customers
Dividends payable 10,125
Taxes accrued 2,382 56
Interest accrued 8,433
Obligations under capital leases 375
Other accrued liabilities 26,591 3,185
-------------------------- ---------------------
Total 141,842 4,396
-------------------------- ---------------------
Customers' Advances for Construction 1,867
-------------------------- ---------------------
Regulatory Liabilities
Accumulated deferred investment tax credits 15,157
Deferred gains on sale of property 15,901
Customer refund 18,381
Other 8,182
-------------------------- ---------------------
Total 57,621 0
-------------------------- ---------------------
Deferred Income Taxes
263,784
Commitments and Contingencies
-------------------------- ---------------------
$1,758,945 $13,920
========================== =====================
</TABLE>
<TABLE>
<CAPTION>
Thermal Energies United Resources
Inc. Inc.
---------------------- ----------------------
<S> <C> <C>
Capitalization
Common stock equity
Common stock $ 1 $ 1
Paid-in capital 1,702 31,321
Capital stock expense
Unearned employee stock ownership plan equity
Retained earnings (1,153) (9,016)
---------------------- ----------------------
549 22,306
Preferred stock
Company-obligated mandatorily redeemable
securities of subsidiary holding solely parent debentures
Long-term debt
Long-term debt
Investment in Seabrook obligation bonds
---------------------- ----------------------
Net long-term debt 0 0
Total 549 22,306
---------------------- ----------------------
Noncurrent Liabilities
Purchase power contract obligation
Connecticut Yankee contract obligation
Pensions accrued
Nuclear decommissioning obligation
Obligations under capital leases
Other
---------------------- ----------------------
Total 0 0
---------------------- ----------------------
Current Liabilities
Current portion of long-term debt
Notes payable 72
Accounts payable 101,105
Accounts payable-APS customers
Dividends payable
Taxes accrued 2 4
Interest accrued
Obligations under capital leases
Other accrued liabilities 906 2,626
---------------------- ----------------------
Total 980 103,734
---------------------- ----------------------
Customers' Advances for Construction
---------------------- ----------------------
Regulatory Liabilities
Accumulated deferred investment tax credits
Deferred gains on sale of property
Customer refund
Other
---------------------- ----------------------
Total 0 0
---------------------- ----------------------
Deferred Income Taxes
439
Commitments and Contingencies
---------------------- ----------------------
$1,530 $126,479
====================== ======================
</TABLE>
<TABLE>
<CAPTION>
United Bridgeport American Payment United Capital
Energy Inc. Systems, Inc. Funding Partnership
----------------- ------------------ -------------------
<C> <C> <C>
<S>
Capitalization
Common stock equity $ 1 $ 1 $ 0
Common stock 80,528 17,056 506
Paid-in capital
Capital stock expense
Unearned employee stock ownership plan equity 1,766 (7,555)
Retained earnings ----------------- ------------------ -------------------
82,295 9,502 506
Preferred stock
Company-obligated mandatorily redeemable 50,000
securities of subsidiary holding solely parent debentures
Long-term debt
Long-term debt
Investment in Seabrook obligation bonds ----------------- ------------------ -------------------
0 0 0
Net long-term debt
82,295 9,502 50,506
Total ----------------- ------------------ -------------------
Noncurrent Liabilities
Purchase power contract obligation
Connecticut Yankee contract obligation
Pensions accrued
Nuclear decommissioning obligation
Obligations under capital leases
Other ----------------- ------------------ -------------------
0 0 0
Total ----------------- ------------------ -------------------
Current Liabilities
Current portion of long-term debt
Notes payable 11,703 1,079
Accounts payable 56,220
Accounts payable-APS customers
Dividends payable 93
Taxes accrued
Interest accrued
Obligations under capital leases 2,994
Other accrued liabilities ----------------- ------------------ -------------------
11,703 60,386 0
Total ----------------- ------------------ -------------------
Customers' Advances for Construction ----------------- ------------------ -------------------
Regulatory Liabilities
Accumulated deferred investment tax credits
Deferred gains on sale of property
Customer refund
Other ----------------- ------------------ -------------------
0 0 0
Total ----------------- ------------------ -------------------
Deferred Income Taxes
Commitments and Contingencies
----------------- ------------------ -------------------
$93,999 $69,888 $50,506
================= ================== ===================
</TABLE>
<TABLE>
<CAPTION>
Allan
Electric Co. Inc. Consolidating Consolidated
-------------------- ------------------- -------------------
<S> <C> <C> <C>
Capitalization
Common stock equity
Common stock $ 100 (105) $292,006
Paid-in capital 8,557 (155,198) $ 2,253
Capital stock expense $ (2,170)
Unearned employee stock ownership plan equity $ (9,261)
Retained earnings 433 175,470
-------------------- ------------------- -------------------
9,090 (155,303) 458,298
Preferred stock
Company-obligated mandatorily redeemable
securities of subsidiary holding solely parent debentures 50,000
Long-term debt
Long-term debt (50,506) 605,641
Investment in Seabrook obligation bonds (87,413)
-------------------- ------------------- -------------------
Net long-term debt 0 (50,506) 518,228,409
Total 9,090 (205,809) 1,026,526
-------------------- ------------------- -------------------
Noncurrent Liabilities
Purchase power contract obligation 144,406
Connecticut Yankee contract obligation 27,056
Pensions accrued 19,026
Nuclear decommissioning obligation 28,255
Obligations under capital leases 16,131
Other 10,394
-------------------- ------------------- -------------------
Total 0 0 245,268
-------------------- ------------------- -------------------
Current Liabilities
Current portion of long-term debt 25,000
Notes payable 59 17,131
Accounts payable (117,909) 49,069
Accounts payable-APS customers 56,220
Dividends payable 10,125
Taxes accrued 34 2,570
Interest accrued 8,433
Obligations under capital leases 375
Other accrued liabilities 8,575 (5,456) 39,421
-------------------- ------------------- -------------------
Total 8,667 (123,365) 208,344
-------------------- ------------------- -------------------
Customers' Advances for Construction 1,867
-------------------- ------------------- -------------------
Regulatory Liabilities
Accumulated deferred investment tax credits 15,157
Deferred gains on sale of property 15,901
Customer refund 18,381
Other (5,639) 2,543
-------------------- ------------------- -------------------
Total 0 (5,639) 51,982
-------------------- ------------------- -------------------
Deferred Income Taxes
264,223
Commitments and Contingencies
-------------------- ------------------- -------------------
$17,758 (334,813) $ 1,798,210
==================== =================== ===================
</TABLE>
<PAGE>
THE UNITED ILLUMINATING COMPANY
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1999
Thousands of Dollars
<TABLE>
<CAPTION>
The United Precision Power Thermal Energies United Resources
Illuminating Company Inc. Inc. Inc.
--------------------------------------- ---------------- --------------------
<S> <C> <C> <C> <C>
Balance, January 1 $183,121 $(3,017) $(848) $(6,307)
Net income 54,480 (2,988) (305) (2,709)
Adjustments associated with repurchase
of preferred stock (65)
------------------ ----------------- ---------------- --------------------
Total 237,536 (6,005) (1,153) (9,016)
------------------ ----------------- ---------------- --------------------
Deduct Cash Dividends Declared
Preferred stock 66
Common stock 40,470
------------------ ----------------- ---------------- --------------------
Total 40,536 0 0 0
------------------ ----------------- ---------------- --------------------
Balance, December 31 $197,000 $(6,005) $(1,153) $(9,016)
================== ================= ================ ====================
</TABLE>
<TABLE>
<CAPTION>
United Bridgeport American Payment United Capital Allan
Energy Inc. Systems Inc. Funding Partnership Electric Co. Inc.
----------------- ------------------ ------------------- -----------------
<S> <C> <C> <C> <C>
Balance, January 1 $ 0 $(9,102) $0 $ 0
Net income 1,766 1,547 433
Adjustments associated with repurchase
of preferred stock
----------------- ------------------ ----------------- ----------------
Total 1,766 (7,555) 0 433
----------------- ------------------ ----------------- ----------------
Deduct Cash Dividends Declared
Preferred stock
Common stock
----------------- ------------------ ----------------- ----------------
Total 0 0 0 0
----------------- ------------------ ----------------- ----------------
Balance, December 31 $1,766 $(7,555) $0 $433
================= ================== ================= ================
</TABLE>
<TABLE>
<CAPTION>
Consolidating Consolidated
------------ --------------------
<S> <C> <C>
Balance, January 1 $ 163,847
Net income 52,224
Adjustments associated with repurchase
of preferred stock (65)
------------ --------------------
Total 0 216,006
------------ --------------------
Deduct Cash Dividends Declared
Preferred stock 66
Common stock 40,470
------------ --------------------
Total 0 40,536
------------ --------------------
Balance, December 31 $0 $175,470
============ ====================
</TABLE>
<PAGE>
EXHIBIT B
FINANCIAL DATA SCHEDULE
DECEMBER 31, 1999
1 Total Assets: $1,798,210,000
2 Total Operating Revenues: $679,975,000
3 Net Income: $52,224,000
9
<PAGE>
EXHIBIT C
An organizational chart showing the relationship of each EWG or foreign
utility company to associate companies in the holding company system.
<TABLE>
<CAPTION>
<S> <C> <C>
----------------------------------------
UIL Holdings Corporation
----------------------------------------
100%
----------------------------------------
United Resources, Inc.
----------------------------------------
100%
---------------------------------------- --------------------------------------
United Bridgeport Energy, Inc. Unrelated Persons
Inc.
---------------------------------------- --------------------------------------
33% 67%
--------------------------------------
Bridgeport Energy LLC
(EWG)
--------------------------------------
</TABLE>
10
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