Form U -13 - 60
Mutual and Subsidiary Service Companies
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1993 and Ending December 31, 1993
TO THE
U. S. SECURITIES AND EXCHANGE COMMISSION
OF
NORTHEAST UTILITIES SERVICE COMPANY
A Subsidiary Service Company
Date of Incorporation - September 3, 1965
State of Sovereign Power under which Incorporated or
Organized - Connecticut
Location of Principal Executive Offices of Reporting
Company - Selden Street, Berlin, CT 06037
Name, title, and address of officer to whom correspondence
concerning this report should be addressed:
John W. Noyes, Vice President and Controller,
P.O. Box 270, Hartford, CT 06141-0270
Name of Principal Holding Company Whose Subsidiaries
are served by Reporting Company
NORTHEAST UTILITIES
INSTRUCTIONS FOR USE ON FORM U-13-60
1. TIME OF FILING
Rule 94 provides that on or before the first day of May in each calendar
year, each mutual service company and each subsidiary service company as to
which the Commission shall have made a favorable finding pursuant to Rule 88,
and every service company whose application for approval or declaration
pursuant to Rule 88 is pending shall file with the Commission an annual
report on Form U-13-60 and in accordance with the instructions for that form.
2. NUMBER OF COPIES
Each annual report shall be filed in duplicate. The company should prepare
and retain at least one extra copy for itself in case correspondence with
reference to the report becomes necessary.
3. PERIOD COVERED BY REPORT
The first report filed by any company shall cover the period from the date
the Uniform System of Accounts was required to be made effective as to that
company under Rules 82 and 93 to the end of that calendar year. Subsequent
reports should cover a calendar year.
4. REPORT FORMAT
Reports shall be submitted on the forms prepared by the Commission. If the
space provided on any sheet of such form is inadequate, additional sheets may
be inserted of the same size as a sheet of the form or folded to such size.
5. MONEY AMOUNTS DISPLAYED
All money amounts required to be shown in financial statements may be
expressed in whole dollars, in thousands of dollars or in hundred thousands
of dollars, as appropriate, and subject to provisions of Regulation S-X
(Paragraph 210.3-0.1(b)).
6. DEFICITS DISPLAYED
Deficits and other like entries shall be indicated by the use of either
brackets or a parenthesis with corresponding reference in footnotes.
(Regulation S-X, (Paragraph 210.3-0.1(c)).
7. MAJOR AMENDMENTS OR CORRECTIONS
Any company desiring to amend or correct a major omission or error in a
report after it has been filed with the Commission shall submit an amended
report including only those pages, schedules, and entries that are to be
amended or corrected. A cover letter shall be submitted requesting the
Commission to incorporate the amended report changes and shall be signed by a
duly authorized officer of the company.
8. DEFINITIONS
Definitions contained in Instruction 01-8 to the Uniform System of Accounts
for Mutual Service Companies and Subsidiary Service Companies, Public Utility
Holding Company Act of 1935, as amended February 2, 1979 shall be applicable
to words or terms used specifically within this Form U-13-60.
9. ORGANIZATION CHART
The service company shall submit with each annual report a copy of its
current organization chart.
10. METHODS OF ALLOCATION
The service company shall submit with each annual report a listing of the
currently effective methods of allocation being used by the service company
and on file with the Securities and Exchange Commission pursuant to the
Public Utility Holding Company Act of 1935.
11. ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
The service company shall submit with each annual report a copy of the annual
statement supplied to each associate company in support of the amount of
compensation for use in capital billed during the calendar year.
LISTINGS OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Schedule or Page
Description of Schedules and Accounts Acct. No. No.
- - ------------------------------------- ------------ ----
Comparative Balance Sheet Schedule I 4-5
Service Company Property Schedule II 6-7
Accumulated Provision for Depreciation and
Amortization of Service Company Property Schedule III 8
Investments Schedule IV 9
Accounts Receivable from Associate Companies Schedule V 10
Fuel Stock Expenses Undistributed Schedule VI 11
Stores Expense Undistributed Schedule VII 12
Miscellaneous Current and Accrued Assets Schedule VII 13
Miscellaneous Deferred Debits Schedule IX 14
Research, Development, or Demonstration
Expenditures Schedule X 15
Proprietary Capital Schedule XI 16
Long Term Debt Schedule XII 17
Current and Accrued Liabilities Schedule XIII 18
Notes to Financial Statements Schedule XIV 19
Comparative Income Statement Schedule XV 20
Analysis of Billing - Associate Companies Account 457 21
Analysis of Billing - Nonassociate Companies Account 458 22
Analysis of Charges for Service - Associate
and Nonassociated Companies Schedule XVI 23
Schedule of Expense by Department or Service
Function Schedule XVII 24-25
Departmental Analysis of Salaries Account 920 26
Outside Services Employed Account 923 27
Employee Pensions and Benefits Account 926 28
General Advertising Expenses Account 930.1 29
Miscellaneous General Expenses Account 930.2 30
Rents Account 931 31
Taxes Other Than Income Taxes Account 408 32
Donations Account 426.1 33
Other Deductions Account 426.5 34
Notes to Statement of Income Schedule XVII 35
Description of Reports or Statements
- - ------------------------------------
Organization Chart 36
Methods of Allocation 37
Annual Statement of Compensation for
Use of Capital Billed 38
Signature Page 39
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the current and prior year.
----------------------------------------------------------------------------------------
ACCOUNT ASSETS AND OTHER DEBITS AS OF DECEMBER 31
----------------------------------------------------------------------------------------
1993 1992
(Thousands of Dollars)
<S> <C> <C>
SERVICE COMPANY PROPERTY
------------------------
101 Service company property (Schedule II) 63,614 59,161
107 Construction work in progress (Schedule II) 11,751 8,096
----------- -----------
Total Property 75,365 67,257
----------- -----------
108 Less accumulated provision for depreciation and
amortization of service company property (Schedule III) 55,024 52,320
----------- -----------
Net Service Company Property 20,341 14,937
----------- -----------
INVESTMENTS
-----------
123 Investments in associate companies (Schedule IV) - -
124 Other investments (Schedule IV) 949 795
----------- -----------
Total Investments 949 795
----------- -----------
CURRENT AND ACCRUED ASSETS
--------------------------
131 Cash 8,281 4,194
134 Special deposits - -
135 Working funds 481 617
136 Temporary cash investments (Schedule IV) - -
141 Notes receivable - -
143 Accounts receivable 20,944 8,301
144 Accumulated provision of uncollectible accounts - -
146 Accounts receivable from associate companies (Schedule V) 44,456 88,613
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies 158 162
163 Stores expense undistributed (Schedule VII) - -
165 Prepayments 1,034 222
174 Miscellaneous current and accrued assets (Schedule VIII) - -
----------- -----------
Total Current and Accrued Assets 75,354 102,109
----------- -----------
DEFERRED DEBITS
---------------
181 Unamortized debt expense - -
184 Clearing accounts (12) 15
186 Miscellaneous deferred debits (Schedule IX) 5,889 423
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes 13,166 8,103
----------- -----------
Total Deferred Debits 19,043 8,541
----------- -----------
TOTAL ASSETS AND OTHER DEBITS 115,687 126,382
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the current and prior year.
----------------------------------------------------------------------------------------
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31
----------------------------------------------------------------------------------------
1993 1992
PROPRIETARY CAPITAL (Thousands of Dollars)
<S> <C> <C>
-------------------
201 Common stock issued (Schedule XI) - -
211 Miscellaneous paid-in-capital (Schedule XI) 1 1
215 Appropriated retained earnings (Schedule XI) - -
216 Unappropriated retained earnings (Schedule XI) - -
----------- -----------
Total Proprietary Capital 1 1
----------- -----------
LONG-TERM DEBT
--------------
223 Advances from associate companies (Schedule XII) - -
224 Other long-term debt (Schedule XII) - -
225 Unamortized premium on long-term debt - -
226 Unamortized discount on long-term debt-debit - -
----------- -----------
Total Long-Term Debt - -
----------- -----------
CURRENT AND ACCRUED LIABILITIES
-------------------------------
231 Notes payable - -
232 Accounts payable 21,457 24,948
233 Notes payable to associate companies (Schedule XIII) 34,875 59,600
234 Accounts payable to associate companies (Schedule XIII) 4,937 2,799
236 Taxes accrued (1,013) 2,718
237 Interest accrued - 56
238 Dividends declared - -
241 Tax collections payable 361 739
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 39,120 28,872
----------- -----------
Total Current and Accrued Liabilities 99,737 119,732
----------- -----------
DEFERRED CREDITS
----------------
253 Other deferred credits 15,949 6,649
255 Accumulated deferred investment tax credits - -
----------- -----------
Total Deferred Credits 15,949 6,649
----------- -----------
282 ACCUMULATED DEFERRED INCOME TAXES - -
--------------------------------- ----------- -----------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 115,687 126,382
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE II - SERVICE COMPANY PROPERTY
-------------------------------------------------------------------------------------------
BALANCE AT RETIREMENTS BALANCE
BEGINNING OR OTHER AT CLOSE
DESCRIPTION OF YEAR ADDITIONS SALES CHANGES/1 OF YEAR
-------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C>
SERVICE COMPANY PROPERTY
------------------------
Account
-------
301 ORGANIZATION
303 MISCELLANEOUS INTANGIBLE PLANT 468 468
304 LAND AND LAND RIGHTS
305 STRUCTURES AND IMPROVEMENTS
306 LEASEHOLD IMPROVEMENTS 2,812 2,812
307 EQUIPMENT /2 41,221 3,815 45,036
308 OFFICE FURNITURE AND EQUIPMENT 14,028 654 46 14,636
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT 3 (1) 2
310 AIRCRAFT AND AIRPORT EQUIPMENT
311 OTHER SERVICE COMPANY
PROPERTY /3 629 33 3 659
---------- --------- ----------- ---------- ----------
SUB-TOTAL 59,161 4,501 49 0 63,613
---------- --------- ----------- ---------- ----------
107 CONSTRUCTION WORK IN
PROGRESS /4 8,096 3,656 11,752
---------- --------- ----------- ---------- ----------
TOTAL 67,257 8,157 49 0 75,365
========== ========= =========== ========== ==========
-------------------------------------------------------------------------
/1PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
NONE
</TABLE>
SCHEDULE II - CONTINUED
-----------------------
/2 SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE
SERVICE COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT
ADDITIONS DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE
YEAR:
--------------------------------------------------------------------------
BALANCE
AT CLOSE
SUBACCOUNT DESCRIPTION ADDITIONS OF YEAR
-------------------------------------------------------------------------
(Thousands of Dollars)
307NA Automatic Data Processing Equipment 1,508 33,717
307NB Construction Equipment 32 110
307NC Other Communication Equipment 1,876 7,436
307NL Research and Laboratory Equipment 351 3,612
307NM Microwave Equipment 48 149
307NP Printing and Stationery Equipment 0 12
----------- ----------
TOTAL 3,815 45,036
=========== ==========
- - -----------------------------------------------------------------------------
/3 DESCRIBE OTHER SERVICE COMPANY PROPERTY:
This account includes audio, visual, cafeteria and training equipment.
- - -----------------------------------------------------------------------------
/4 DESCRIBE CONSTRUCTION WORK IN PROGRESS:
This account includes data processing equipment and other general plant
items.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
------------------------------------------
-------------------------------------------------------------------------------------------
ADDITIONS OTHER
BALANCE AT CHARGED CHANGES BALANCE
BEGINNING TO ADD AT CLOSE
DESCRIPTION OF YEAR ACCT 403 RETIREMENTS (DEDUCT)1/ OF YEAR
-------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C>
Account
-------
301 ORGANIZATION - - - - -
303 MISCELLANEOUS INTANGIBLE PLANT 462 6 - - 468
304 LAND AND LAND RIGHTS - - - - -
305 STRUCTURES AND IMPROVEMENTS - - - - -
306 LEASEHOLD IMPROVEMENTS 2,675 5 - - 2,680
307 EQUIPMENT 34,628 2,765 - - 37,393
308 OFFICE FURNITURE AND FIXTURES 13,927 (2) 46 (21) 13,858
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT 3 - - - 3
310 AIRCRAFT AND AIRPORT EQUIPMENT - - - - -
311 OTHER SERVICE COMPANY
PROPERTY 625 1 3 (1) 622
---------- --------- ----------- ---------- ----------
TOTAL 52,320 2,775 49 (22) 55,024
========== ========= =========== ========== ==========
-------------------------------------------------------------------------------------------
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE IV - INVESTMENTS
INSTRUCTIONS: Complete the following schedule concerning investments.
Under Account 124, "Other Investments," state each investment
separately, with description, including the name of issuing company,
number of shares or principal amount, etc.
Under Account 136, "Temporary Cash Investments," list each investment
separately.
---------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
---------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
ACCOUNT 123 - INVESTMENT IN ASSOCIATE COMPANIES - -
ACCOUNT 124 - OTHER INVESTMENTS:
Cash Surrender Value of Company Owned Life Insurance 795 949
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS - -
----------- ----------
TOTAL 795 949
=========== ==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable from each
associate company. Where the service company has provided accommodation or
convenience payments for associate companies, a separate listing of total
payments for each associate company by subaccount should be provided.
- - ------------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- - ------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
---------------------------------------------
Northeast Utilities 608 2,304
The Connecticut Light and Power Company 12,101 (180)
The Rocky River Realty Company (184) 31
Holyoke Water Power Company 290 359
Holyoke Power and Electric Company (71) 1
Western Massachusetts Electric Company 966 554
Public Service Company of New Hampshire 4,316 2,138
North Atlantic Energy Corporation 17 5
North Atlantic Service Energy Corporation 361 1,129
The Quinnehtuk Company (20) 3
Northeast Nuclear Energy Company 11,532 3,121
Charter Oak Energy Incorporated (853) -
Charter Oak Paris Incorporated (105) 1
COE Development Corporation - 92
HEC Inc. 55 23
---------- -----------
29,013 9,581
---------- -----------
NOTES RECEIVABLE (MONEY POOL) FROM ASSOCIATE COMPANIES
-------------------------------------------------------
The Connecticut Light and Power Company - 1,250
Public Service Company of New Hampshire 8,500 2,500
North Atlantic Energy Corporation 18,500 -
The Rocky River Realty Company 12,500 16,500
The Quinnehtuk Company 4,100 4,250
Northeast Nuclear Energy Company 16,000 7,500
HEC Inc. - 2,875
---------- -----------
59,600 34,875
---------- -----------
TOTAL 88,613 44,456
========== ===========
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
See page 10A for details
</TABLE>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable
from each associate company. Where the service company has
provided accommodation or convenience payments for associate
companies, a separate listing of total payments for each
associate company by subaccount should be provided.
- - -----------------------------------------------------------------------------
TOTAL
PAYMENTS
- - -----------------------------------------------------------------------------
(Thousands
of Dollars)
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
Northeast Utilities 1,767
The Connecticut Light and Power Company 35,295
Holyoke Water Power Company 3,792
Western Massachusetts Electric Company 15,883
Public Service Company of New Hampshire 24,125
North Atlantic Energy Corporation 547
North Atlantic Service Energy Corporation 9,449
Northeast Nuclear Energy Company 22,833
Charter Oak Energy Incorporated (769)
The Quinnehtuk Company 1
The Rocky River Realty Company 234
HEC Inc. (16)
-----------
TOTAL 113,141
===========
Convenience payments result primarily from the following items:
Net Power Exchange (57,494)
Employee Pensions and Benefits 91,610
U.S. Department of Energy Fees 4,698
Electric Power Research Institute Fees 6,643
Legal Services 2,745
Conservation and Load Management 1,028
Non Nuclear Insurance 8,178
Engineering Services 3,869
Communication Expenses 5,271
Computer Equipment & Supplies 1,881
Payroll Deductions to Credit Unions 35,760
Temporary Personnel Services 1,951
Miscellaneous (713 items) 7,001
-----------
TOTAL 113,141
===========
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE VI - FUEL STOCK EXPENSES UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect
to fuel stock expenses during the year and indicate amount
attributable to each associate company. Under the section
headed "Summary" listed below, give an overall report of the
fuel functions performed by the service company.
- - -----------------------------------------------------------------------------
DESCRIPTION LABOR EXPENSES TOTAL
- - -----------------------------------------------------------------------------
(Thousands of Dollars)
ACCOUNT 152 - FUEL STOCK EXPENSES
UNDISTRIBUTED 678 187 865
The above fuel stock expenses are billed
back to each of the associated companies
listed below:
The Connecticut Light and Power Company (223) (65) (288)
Public Service Company of New Hampshire (248) (90) (338)
Western Massachusetts Electric Company (91) (16) (107)
Holyoke Water Power Company (116) (16) (132)
------- ------- -------
TOTAL 0 0 0
======= ======= =======
- - -----------------------------------------------------------------------------
SUMMARY: Fuel functions performed by the Service Company consist mainly of
the acquisition of fossil fuels.
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect
to stores expense during the year and indicate amount
attributable to each associate company.
- - -----------------------------------------------------------------------------
DESCRIPTION LABOR EXPENSES TOTAL
- - -----------------------------------------------------------------------------
(Thousands of Dollars)
ACCOUNT 163 - STORES EXPENSE
UNDISTRIBUTED 2,718 1,974 4,692
The above stores expenses are billed back
to each of the companies listed below:
The Connecticut Light and Power Company (887) (416) (1,303)
Public Service Company of New Hampshire (71) 0 (71)
Western Massachusetts Electric Company (136) (60) (196)
Holyoke Water Power Company (54) (27) (81)
Northeast Nuclear Energy Company (1,173) (1,074) (2,247)
Connecticut Yankee Atomic Power Company -
(nonassociate company) (397) (397) (794)
------- ------- -------
TOTAL 0 0 0
======= ======= =======
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE VIII
MISCELLANEOUS CURRENT AND ACCRUED ASSETS
INSTRUCTIONS: Provide detail of items in this account. Items less than
10,000 may be grouped, showing the number of items in each
group.
- - ----------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- - ----------------------------------------------------------------------------
(Thousands of Dollars)
ACCOUNT 174 - MISCELLANEOUS CURRENT AND
ACCRUED ASSETS - -
----------- ----------
TOTAL - -
=========== ==========
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE IX
MISCELLANEOUS DEFERRED DEBITS
INSTRUCTIONS: Provide detail of items in this account. Items less than
10,000 may be grouped, showing the number of items in each
group.
- - ----------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- - ----------------------------------------------------------------------------
(Thousands of Dollars)
ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS
Unfunded supplemental executive retirement plan - 4,315
Employees performance payments 252 187
Agents account clearing 142 1,109
Deferred receivable from former employees - 256
Deferred annuity 50 50
Miscellaneous (4 items at beginning and
end of year) (21) (28)
----------- ----------
TOTAL 423 5,889
=========== ==========
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE X
RESEARCH, DEVELOPMENT, OR DEMONSTRATION EXPENDITURES
INSTRUCTIONS: Provide a description of each material research,development, or
demonstration project which incurred costs by the service
corporation during the year.
- - --------------------------------------------------------------------------
DESCRIPTION AMOUNT
- - --------------------------------------------------------------------------
(Thousands of Dollars)
ACCOUNT 188 - RESEARCH, DEVELOPMENT OR
DEMONSTRATION EXPENDITURES
General technological, research, development, and
demonstration services 110
Electric vehicles project 49
Enchanced cable data bank 12
Miscellanous (7 items) 13
The above expenses are billed back to each of the
associated companies listed below:
The Connecticut Light and Power Company (103)
Public Service Company of New Hampshire (58)
Western Massachusetts Electric Company (20)
Holyoke Water Power Company (3)
-------
TOTAL 0
=======
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE XI
PROPRIETARY CAPITAL
- - -----------------------------------------------------------------------------
NUMBER OF PAR OR STATED OUTSTANDING CLOSE OF PERIOD
ACCOUNT SHARES VALUE ---------------------------
NUMBER CLASS OF STOCK AUTHORIZED PER SHARE NO. OF SHARES TOTAL AMOUNT
- - -----------------------------------------------------------------------------
201 COMMON STOCK ISSUED 5,000 1.00 1 1.00
- - -----------------------------------------------------------------------------
INSTRUCTIONS: Classify amounts in each account with brief explanation,
disclosing the general nature of transactions which give rise
to the reported amounts.
- - -----------------------------------------------------------------------------
DESCRIPTION AMOUNT
- - -----------------------------------------------------------------------------
(Thousands of Dollars)
ACCOUNT 211 - MISCELLANEOUS PAID-IN-CAPITAL 1
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS -
------
TOTAL 1
======
- - ----------------------------------------------------------------------------
INSTRUCTIONS: Give particulars concerning net income or (loss) during the
year, distinguishing between compensation for the use of
capital owed or net loss remaining from servicing nonassociated
companies per the General Instructions of the Uniform Systems
of Accounts. For dividends paid during the year in cash or
otherwise, provide rate pecentage, amount of dividend, date
declared and date paid.
- - -----------------------------------------------------------------------------
BALANCE AT NET INCOME BALANCE AT
BEGINNING OR DIVIDENDS CLOSE
DESCRIPTION OF YEAR (LOSS) PAID OF YEAR
- - -----------------------------------------------------------------------------
ACCOUNT 216-UNAPPROPRIATED
RETAINED
EARNINGS - - - -
----- ----- ----- -----
TOTAL - - - -
===== ===== ===== =====
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE XII
LONG-TERM DEBT
INSTRUCTIONS: Advances from associate companies should be reported separately for advances on
notes, and advances on open account. Names of associate companies from which advances
were received shall be shown under the class and series of obligation column. For
Account 224 -- Other long-term debt provide the name of creditor company or
organization, terms of obligation, date of maturity, interest rate, and the amount
authorized and outstanding.
- - ------------------------------------------------------------------------------------------------------
TERMS OF OBLIG. DATE BALANCE AT BALANCE AT
CLASS & SERIES OF INTEREST AMOUNT BEGINNING CLOSE
NAME OF CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR ADDITIONS DEDUCTIONS(1) OF YEAR
- - ------------------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C>
ACCOUNT 223-ADVANCES
FROM ASSOCIATE COMPANIES: NONE
ACCOUNT 224-OTHER
LONG-TERM DEBT: NONE
(1) GIVE AN EXPLANATION OF DEDUCTIONS:
</TABLE>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES
INSTRUCTIONS: Provide balance of notes and accounts payable to each associate
company. Give description and amount of miscellaneous current
and accrued liabilities. Items less than 10,000 may be
grouped, showing the number of items in each group.
- - -----------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- - -----------------------------------------------------------------------------
(Thousands of Dollars)
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES
Northeast Utilities 52,600 19,625
Holyoke Water Power Company 1,500 1,750
Northeast Nuclear Energy Company 5,500 13,500
----------- ----------
TOTAL 59,600 34,875
=========== ==========
- - -----------------------------------------------------------------------------
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
Northeast Utilities 474 2,219
The Connecticut Light and Power Company 920 888
The Rocky River Realty Company 932 1,012
Public Service Company of New Hampshire 123 187
Western Massachusetts Electric Company 20 49
Northeast Nuclear Energy Company 322 -
Holyoke Water Power Company 8 17
Charter Oak Energy Incorporated - 565
----------- ----------
TOTAL 2,799 4,937
=========== ==========
- - -----------------------------------------------------------------------------
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES
Pension Cost 17,069 25,822
Performance Reward Program 4,259 4,562
Payroll Accrual 4,774 4,745
Executive Incentive Plan 1,612 2,472
Payroll Deductions 641 725
Early Retirement Program 140 745
Interest on Connecticut Sales Tax Settlement 279 15
Audit Expenses 37 34
Group Life Insurance Premium Payments 60 -
Other (2 items at beginning and end of period) 1 -
----------- ----------
TOTAL 28,872 39,120
=========== ==========
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
-----------------------------------
For the Year Ended December 31, 1993
-----------------------
SCHEDULE XIV
------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
INSTRUCTIONS: The space below is provided for important notes regarding
the financial statements or any account thereof. Furnish
particulars as to any significant contingent assets or
liabilities existing at the end of the year. Notes
relating to financial statements shown elsewhere in this
report may be indicated here by reference.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL
Northeast Utilities Service Company (NUSCO or the company), a wholly owned
subsidiary of Northeast Utilities (NU), supplies centralized accounting,
administrative, data processing, engineering, financial, legal, operational,
planning, purchasing, and other services to the system companies of NU.
DEPRECIATION
The provision for depreciation is calculated using the straight-line method
based on estimated remaining lives of depreciable utility plant-in-service,
adjusted for salvage value and removal costs as approved by the appropriate
regulatory agency. Depreciation factors are applied to the average plant-in-
service during the period. The depreciation rates for the several classes of
plant-in-service are equivalent to a composite rate of 3.6 percent in 1993
and 5.1 percent in 1992. When plant is retired from service, the original
cost of the plant, including costs of removal, less salvage is charged to the
accumulated provision for depreciation.
ACCOUNTING CHANGES
Postretirement Benefits Other Than Pensions: The company has adopted the
provisions of Statement of Financial Accounting Standards No. 106, "Emplo
yer's Accounting for Postretirement Benefits Other Than Pensions" (SFAS 106),
effective January 1, 1993. For information on this change, see Note 5,
"Postretirement Benefits Other Than Pensions."
2. LEASES
NUSCO has entered into lease agreements for the use of data processing,
office equipment, vehicles, and office space. For the purposes of this
report, all leases are accounted for as operating leases. At December 31,
1993, assuming those leases which would have been classified as capital
leases were capitalized at the beginning of the lease terms, assets would
have increased by approximately $3,095,000, current liabilities would have
increased by approximately $1,494,000, and long-term obligations would have
increased by approximately $1,601,000. There is no effect on the company's
results of operations.
Rental payments charged to operating expenses amounted to approximately
$1,327,000 for capital leases and $15,625,000 for operating leases in 1993.
Interest included in capital lease rental payments was approximately $199,500
in 1993.
Future minimum rental payments, under long-term noncancelable leases as of
December 31, 1993, excluding executory costs such as property taxes, state
use taxes, insurance, and maintenance are approximately:
Capital Operating
Period Leases Leases
------ ------ ---------
(Thousands of Dollars)
1994. . . . . . . . . . . . . . . . . . $ 1,672 $ 12,189
1995. . . . . . . . . . . . . . . . . . 1,257 11,992
1996. . . . . . . . . . . . . . . . . . 466 11,573
1997. . . . . . . . . . . . . . . . . . 0 12,189
1998. . . . . . . . . . . . . . . . . . 0 5,796
After 1998. . . . . . . . . . . . . . . 0 79,570
-------- --------
Future minimum lease payments . . . . . 3,395 $133,309
Less amount representing interest . . . 300 ========
--------
Present value of future minimum
lease payments. . . . . . . . . . . . $ 3,095
========
3. SHORT-TERM DEBT
Certain subsidiaries of NU are members of the Northeast Utilities System
Money Pool (Pool). The Pool provides a more efficient use of the cash
resources of the system, and reduces outside short-term borrowings. NUSCO is
not permitted to borrow from the Pool but administers the Pool as agent for
the member companies. Short-term borrowing needs of the member companies are
first met with available funds of other member companies, including funds
borrowed by NU parent. NU parent may lend to the Pool but may not borrow.
Investing and borrowing subsidiaries receive or pay interest based on the
average daily Federal Funds rate. Funds may be withdrawn from or repaid to
the Pool at any time without prior notice. However, borrowings based on
loans from NU parent bear interest at NU parent's cost and must be repaid
based upon the terms of NU parent's original borrowing.
4. PENSION BENEFITS
The company participates in a uniform noncontributory-defined benefit
retirement plan covering all regular system employees. Benefits are based on
years of service and employees' highest eligible compensation during five
consecutive years of employment. The company's direct-allocated portion of
the system's pension cost approximated $8.8 million in 1993 and $4.0 million
in 1992. Pension costs for 1993 include approximately $7.3 million related
to a work force reduction program.
Currently, NUSCO funds annually an amount at least equal to that which will
satisfy the requirements of the Employee Retirement Income Security Act and
the Internal Revenue Code. Pension costs are determined using market-related
values of pension assets. Pension assets are invested primarily in domestic
and international equity securities and bonds.
The components of net pension cost for the system (excluding PSNH and North
Atlantic Energy Service Corporation for 1992) are:
- - ---------------------------------------------------------------------------
For the Years Ended December 31, 1993 1992
- - ---------------------------------------------------------------------------
(Thousands of Dollars)
Service cost. . . . . . . . . . . . . . . $ 59,068 $27,480
Interest cost . . . . . . . . . . . . . . 81,456 69,746
Return on plan assets . . . . . . . . . . (176,798) (77,232)
Net amortization. . . . . . . . . . . . . 65,447 (16,266)
------- -------
Net pension cost. . . . . . . . . . . . . $29,173 $ 3,728
======= =======
For calculating pension cost, the following assumptions were used:
- - ---------------------------------------------------------------------------
For the Years Ended December 31, 1993 1992
- - ---------------------------------------------------------------------------
Discount rate . . . . . . . . . . . . . . 8.00% 8.50%
Expected long-term rate of return . . . . 8.50 9.00
Compensation/progression rate . . . . . . 5.00 6.75
The following table represents the plan's funded status reconciled to NU
Consolidated Balance Sheets:
- - ---------------------------------------------------------------------------
At December 31, 1993 1992
- - ---------------------------------------------------------------------------
(Thousands of Dollars)
Accumulated benefit obligation, including
$817,421,000 of vested benefits at
December 31, 1993 and $719,608,000 of
vested benefits at December 31, 1992. . $ 898,788 $ 764,432
========== ==========
Projected benefit obligation. . . . . . . $1,141,271 $1,055,295
Less: Market value of plan assets. . . . 1,340,249 1,226,468
---------- ----------
Market value in excess of projected
benefit obligation. . . . . . . . . . . 198,978 171,173
Unrecognized transition amount. . . . . . (16,735) (18,277)
Unrecognized prior service costs. . . . . 10,287 8,658
Unrecognized net gain . . . . . . . . . . (275,043) (214,894)
---------- ----------
Accrued pension liability . . . . . . . . $ (82,513) $ (53,340)
========== ==========
The following actuarial assumptions were used in calculating the Plan's
year-end funded status:
- - ---------------------------------------------------------------------------
At December 31, 1993 1992
- - ---------------------------------------------------------------------------
Discount rate . . . . . . . . . . . . . . 7.75% 8.00%
Compensation/progression rate . . . . . . 4.75 5.00
The discount rate for 1993 was determined by analyzing the interest rates, as
of December 31, 1993, of long-term, high-quality corporate debt securities
having a duration comparable to the 13.8-year duration of the plan.
During 1993, NU's work force was reduced by approximately 7 percent through a
work force reduction program and involuntary terminations. The cost of the
program, which approximated $13.6 million to NUSCO, included pension,
severance, and other benefits.
5. POSTRETIREMENT BENEFITS OTHER THAN PENSIONS
The company provides certain health care benefits, primarily medical and
dental, and life insurance benefits through a benefit plan to retired
employees. These benefits are available for employees leaving the system who
are otherwise eligible to retire and have met specified service requirements.
Through December 31, 1992, the company recognized the cost of these benefits
as they were paid. In December 1990, the FASB issued SFAS 106. This new
standard requires that the expected cost of postretirement benefits,
primarily health and life insurance benefits, must be charged to expense
during the years that eligible employees render service. Effective January
1, 1993, the company adopted SFAS 106 on a prospective basis. Total health
care and life insurance cost, part of which was deferred or charged to plant,
approximated $9.6 million in 1993 and $2.5 million in 1992.
On January 1, 1993, the accumulated postretirement benefit obligation (APBO)
represented the system's prior-service obligation upon the adoption of SFAS
106. As allowed by SFAS 106, the company is amortizing its APBO of
approximately $58.9 million over a 20-year period. For current employees and
certain retirees, the total SFAS 106 benefit is limited to two times the 1993
health care costs. The SFAS 106 obligation has been calculated based on this
assumption.
During 1993, the company began funding SFAS 106 postretirement costs through
external trusts. The company is funding annually amounts equal to the SFAS
106 costs for the year which also are tax-deductible under the Internal
Revenue Code. The trust assets are invested primarily in equity securities
and bonds.
The following table represents the plan's funded status reconciled to the
Balance Sheet at December 31, 1993:
(Thousands of Dollars)
Accumulated postretirement benefit obligation of:
Retirees. . . . . . . . . . . . . . . . . . $(36,120)
Fully eligible active employees . . . . . . (84)
Active employees not eligible to retire . . (17,766)
--------
Total accumulated postretirement benefit
obligation. . . . . . . . . . . . . . . . . (53,970)
Less: Market value of plan assets. . . . . . 7,246
--------
Accumulated postretirement benefit
obligation in excess of plan assets . . . . (46,724)
Unrecognized transition amount. . . . . . . . 48,127
Unrecognized net gain . . . . . . . . . . . . (649)
--------
Prepaid postretirement benefit costs. . . . . $ 754
========
The components of health care and life insurance costs for the year ended
December 31, 1993 are:
(Thousands of Dollars)
Service cost. . . . . . . . . . . . . . . . . $ 2,608
Interest cost . . . . . . . . . . . . . . . . 4,467
Return on plan assets . . . . . . . . . . . . (152)
Net amortization. . . . . . . . . . . . . . . 2,660
--------
Net health care and life insurance costs. . . $ 9,583
========
For measurement purposes, an 11.1-percent annual rate of increase in the per
capita cost of covered health care benefits was assumed for 1993; the rate
was assumed to decrease to 5.4 percent for 2002. The effect of increasing
the assumed health care cost trend rates by one percentage point in each year
would increase the accumulated postretirement benefit obligation as of
December 31, 1993 by $3.5 million and the aggregate of the service and
interest cost components of net periodic postretirement benefit cost for the
year then ended by $418,000.
The weighted-average discount rate used in determining the accumulated
postretirement benefit obligation was 7.75 percent. The discount rate for
1993 was determined by analyzing the interest rates, as of December 31, 1993,
of long-term, high-quality corporate debt securities having a duration
comparable to that of the plan. The trust holding the plan assets is subject
to federal income taxes at a 35-percent tax rate. The expected long-term
rate of return on plan assets after estimated taxes was 5.00 percent for
health assets and 8.50 percent for life assets.
6. COMMITMENTS AND CONTINGENCIES
The construction program is subject to periodic review and revision. Actual
construction expenditures may vary from such estimates due to factors such as
revised estimates, inflation, revised regulations, delays, the availability
and cost of capital, and actions by regulatory bodies.
The company currently forecasts construction expenditures of $38.1 million
for the years 1994-1998, including $8.5 million for 1994.
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
FOR THE YEAR ENDED DECEMBER 31, 1993
SCHEDULE XV
COMPARATIVE INCOME STATEMENT
- - -----------------------------------------------------------------------------
ACCOUNT DESCRIPTION 1993 1992
- - -----------------------------------------------------------------------------
(Thousands of Dollars)
INCOME
------
457 Services rendered to associate companies 310,216 279,513
458 Services rendered to nonassociate companies 57,347 57,992
421 Miscellaneous income or loss 8 92
------------ -----------
Total Income 367,571 337,597
------------ -----------
EXPENSE
-------
920 Salaries and wages 179,159 170,049
921 Office supplies and expenses 29,997 35,113
922 Administrative expense transferred-credit - -
923 Outside services employed 64,012 56,267
924 Property insurance 91 76
925 Injuries and damages 683 336
926 Employee pensions and benefits 41,511 25,434
928 Regulatory commission expense 277 (71)
930.1 General advertising expenses - -
930.2 Miscellaneous general expenses 4,416 4,684
931 Rents 24,987 25,427
932 Maintenance of structures and equipment 2,243 3,411
403 Depreciation and amortization expense 2,715 2,839
408 Taxes other than income taxes 13,791 12,313
409 Income taxes 1,000 5,309
410 Provision for deferred income taxes 420 -
411 Provision for deferred income taxes-credit (1,420) (5,309)
411.5 Investment tax credit - -
426.1 Donations 468 429
426.5 Other deductions 3,205 1,531
427 Interest on long-term debt - -
430 Interest on debt to associate companies - -
431 Other interest expense 16 (241)
------------ -----------
Total Expense 367,571 337,597
------------ -----------
Net Income or (Loss) 0 0
============ ===========
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
- - -----------------------------------------------------------------------------
DIRECT INDIRECT COMPENSATION TOTAL
COSTS COSTS FOR USE AMOUNT
NAME OF ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED
- - -----------------------------------------------------------------------------
(Thousands of Dollars)
457-1 457-2 457-3
---------------------------------------------
Northeast Utilities 431 12 - 443
The Connecticut Light and
Power Company 112,239 8,442 - 120,681
Public Service Company of New
Hampshire 20,872 1,557 - 22,429
North Atlantic Energy
Corporation 131 9 - 140
Western Massachusetts
Electric Company 23,423 1,888 - 25,311
Holyoke Water Power Company 3,681 270 - 3,951
Holyoke Power and Electric
Company 10 1 - 11
Northeast Nuclear Energy Company 124,525 8,257 - 132,782
North Atlantic Energy Service
Corporation 1,640 70 - 1,710
The Quinnehtuk Company 33 3 - 36
The Rocky River Realty Company 1,752 33 - 1,785
Properties Inc. 5 - - 5
Charter Oak Energy Incorporated 379 40 - 419
Charter Oak Paris Incorporated - - - -
COE Development Corporation 423 48 - 471
HEC Inc. 38 4 - 42
---------- ---------- ----------- ----------
TOTAL 289,582 20,634 - 310,216
========== ========== =========== ==========
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
- - -----------------------------------------------------------------------------
NAME OF DIRECT INDIRECT COMPENSATION EXCESS TOTAL
NONASSOCIATE COSTS COSTS FOR USE TOTAL OR AMOUNT
COMPANY CHARGED CHARGED OF CAPITAL COSTS DEFICIENCY BILLED
- - ----------------------------------------------------------------------------
(Thousands of Dollars)
458-1 458-2 458-3 458-4
---------------------------------------------------------
Connecticut Yankee
Atomic Power
Company 31,946 2,714 - 34,660 - 34,660
Connecticut Valley
Electric Exchange 6,885 54 - 6,939 - 6,939
New England Power
Exchange 10,239 (168) - 10,071 - 10,071
New England Power
Planning Committee 3,909 (61) - 3,848 - 3,848
New England Power
Pool 1,837 (9) - 1,828 - 1,828
Yankee Gas
Services Company 1 - - 1 - 1
-------- -------- ----------- --------- ------ -------
54,817 2,530 - 57,347 - 57,347
======== ======== =========== ========= ====== =======
INSTRUCTIONS: Provide a brief description of the services rendered to each
nonassociate company:
Northeast Utilities Service Company supplies centralized accounting,
administrative, data processing, engineering, financial, legal, operational,
planning, purchasing and/or other services.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
- - ------------------------------------------------------------------------------------------------------
ASSOCIATE COMPANY CHARGES NONASSOCIATE COMPANY CHARGES
- - ------------------------------------------------------------------------------------------------------
ACCOUNT DIRECT INDIRECT DIRECT INDIRECT
NUMBER DESCRIPTION OF ITEMS COST COST TOTAL COST COST TOTAL
- - ------------------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES 146,382 2,584 148,966 29,761 432 30,193
921 OFFICE SUPPLIES AND EXPENSES 18,908 6,482 25,390 3,643 964 4,607
922 ADMINISTRATIVE EXPENSE
TRANSFERRED-CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 56,655 289 56,944 7,028 40 7,068
924 PROPERTY INSURANCE 52 31 83 4 4 8
925 INJURIES AND DAMAGES 584 0 584 99 0 99
926 EMPLOYEE PENSIONS AND BENEFITS 35,081 0 35,081 6,430 0 6,430
928 REGULATORY COMMISSION EXPENSE 266 0 266 11 0 11
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 3,817 374 4,191 173 52 225
931 RENTS 12,502 6,590 19,092 5,020 875 5,895
932 MAINTENANCE OF STRUCTURES
AND EQUIPMENT 423 1,867 2,290 118 (165) (47)
403 DEPRECIATION AND AMORTIZATION
EXPENSE 0 2,391 2,391 0 324 324
408 TAXES OTHER THAN INCOME TAXES 11,413 0 11,413 2,378 0 2,378
409 INCOME TAXES 1,000 0 1,000 0 0 0
410 PROVISION FOR DEFERRED INCOME
TAXES 420 0 420 0 0 0
411 PROVISION FOR DEFERRED INCOME
TAXES - CREDIT (1,420) 0 (1,420) 0 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0 0 0 0
426.1 DONATIONS 461 0 461 7 0 7
426.5 OTHER DEDUCTIONS 3,031 26 3,057 144 4 148
427 INTEREST ON LONG-TERM DEBT 0 0 0 0 0 0
431 OTHER INTEREST EXPENSE 15 0 15 1 0 1
------------------------------------------------------------
SUBTOTAL EXPENSES = 289,590 20,634 310,224 54,817 2,530 57,347
COMPENSATION FOR USE
OF EQUITY CAPITAL=
430 INTEREST ON DEBT TO
ASSOCIATE COMPANIES= 0 0
431 OTHER INTEREST EXPENSE= 0 0
---------- ----------
TOTAL EXPENSES = 310,224 57,347
421 MISCELLANEOUS INCOME - CREDIT (8) 0 (8) 0 0 0
------------------------------------------------------------
TOTAL COST OF SERVICE = 289,582 20,634 310,216 54,817 2,530 57,347
===========================================================
INSTRUCTION: Total cost of service will equal for associate and nonassociate
companies the total amount billed under their separate analysis
of billing schedules.
</TABLE>
<TABLE>
<CAPTION>
------------------------------------
TOTAL CHARGES FOR SERVICE
------------------------------------
ACCOUNT DIRECT INDIRECT
NUMBER DESCRIPTION OF ITEMS COST COST TOTAL
- - ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
920 SALARIES AND WAGES 176,143 3,016 179,159
921 OFFICE SUPPLIES AND EXPENSES 22,551 7,446 29,997
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 63,683 329 64,012
924 PROPERTY INSURANCE 56 35 91
925 INJURIES AND DAMAGES 683 0 683
926 EMPLOYEE PENSIONS AND BENEFITS 41,511 0 41,511
928 REGULATORY COMMISSION EXPENSE 277 0 277
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 3,990 426 4,416
931 RENTS 17,522 7,465 24,987
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 541 1,702 2,243
403 DEPRECIATION AND AMORTIZATION EXPENSE 0 2,715 2,715
408 TAXES OTHER THAN INCOME TAXES 13,791 0 13,791
409 INCOME TAXES 1,000 0 1,000
410 PROVISION FOR DEFERRED INCOME TAXES 420 0 420
411 PROVISION FOR DEFERRED INCOME TAXES - CREDIT (1,420) 0 (1,420)
411.5 INVESTMENT TAX CREDIT 0 0 0
426.1 DONATIONS 468 0 468
426.5 OTHER DEDUCTIONS 3,175 30 3,205
427 INTEREST ON LONG-TERM DEBT 0 0 0
431 OTHER INTEREST EXPENSE 16 0 16
----------------------------------
SUBTOTAL EXPENSES = 344,407 23,164 367,571
COMPENSATION FOR USE OF EQUITY CAPITAL=
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES= 0
431 OTHER INTEREST EXPENSE= 0
-----------
TOTAL EXPENSES = 367,571
421 MISCELLANEOUS INCOME - CREDIT (8) 0 (8)
----------------------------------
TOTAL COST OF SERVICE = 344,399 23,164 367,563
==================================
</TABLE>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
- - -----------------------------------------------------------------------------
ACCOUNT TOTAL
NUMBER DESCRIPTION OF ITEMS AMOUNT OVERHEAD (1) (2) (3)
- - -----------------------------------------------------------------------------
920 SALARIES AND WAGES 179,159 3,016 1,212 64,008 9,824
921 OFFICE SUPPLIES AND
EXPENSES 29,997 7,446 75 3,052 828
922 ADMINISTRATIVE EXPENSE
TRANSFERRED-CREDIT 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 64,012 329 306 38,989 374
924 PROPERTY INSURANCE 91 35 0 0 0
925 INJURIES AND DAMAGES 683 0 0 0 0
926 EMPLOYEE PENSIONS AND
BENEFITS 41,511 0 1,751 20 2
928 REGULATORY COMMISSION
EXPENSE 277 0 0 22 0
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 4,416 426 0 0 (59)
931 RENTS 24,987 7,465 2 589 32
932 MAINTENANCE OF STRUCTURES
AND EQUIPMENT 2,243 1,702 0 48 3
403 DEPRECIATION AND AMORTIZATION
EXPENSE 2,715 2,715 0 0 0
408 TAXES OTHER THAN INCOME
TAXES 13,791 0 0 0 0
409 INCOME TAXES 1,000 0 0 0 0
410 PROVISION FOR DEFERRED
INCOME TAXES 420 0 0 0 0
411 PROVISION FOR DEFERRED
INCOME TAXES - CREDIT (1,420) 0 0 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0 0 0
426.1 DONATIONS 468 0 0 0 0
426.5 OTHER DEDUCTIONS 3,205 30 101 170 0
427 INTEREST ON LONG-TERM DEBT 0 0 0 0 0
430 INTEREST ON DEBT TO ASSOCIATE
COMPANIES 0 0 0 0 0
431 OTHER INTEREST EXPENSE 16 0 0 0 0
----------------------------------------
TOTAL EXPENSES = 367,571 23,164 3,447 106,898 11,004
========================================
INSTRUCTIONS: Indicate each department or service function.
(See Instruction 01-3 General Structure of Accounting System: Uniform
System of Accounts)
See page 25 for explanation of above service functions.
- - -----------------------------------------------------------------------------
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
- - -----------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
ACCOUNT ------------------------------------------------
NUMBER DESCRIPTION OF ITEMS (4) (5) (6) (7) (8) (9)
-----------------------------------------------
(Thousands of Dollars)
920 SALARIES AND WAGES 845 12,058 4,381 20,202 1,493 5,361
921 OFFICE SUPPLIES AND
EXPENSES 17 461 702 7,550 71 1,188
922 ADMINISTRATIVE EXPENSE
TRANSFERRED-CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES
EMPLOYED 2,203 637 385 3,143 120 1,191
924 PROPERTY INSURANCE 0 0 0 0 0 0
925 INJURIES AND DAMAGES 0 0 0 0 0 0
926 EMPLOYEE PENSIONS
AND BENEFITS 0 0 1,564 0 0 197
928 REGULATORY COMMISSION
EXPENSE 0 0 0 0 0 1
930.1 GENERAL ADVERTISING
EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL
EXPENSES 0 112 256 401 3 0
931 RENTS 0 395 0 11,881 0 242
932 MAINTENANCE OF
STRUCTURES AND
EQUIPMENT 0 1 79 15 0 23
403 DEPRECIATION AND
AMORTIZATION EXPENSE 0 0 0 0 0 0
408 TAXES OTHER THAN INCOME
TAXES 0 0 0 0 0 0
409 INCOME TAXES 0 0 0 0 0 0
410 PROVISION FOR DEFERRED
INCOME TAXES 0 0 0 0 0 0
411 PROVISION FOR DEFERRED
INCOME TAXES - CREDIT 0 0 0 0 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0 0 0 0
426.1 DONATIONS 28 0 0 0 0 0
426.5 OTHER DEDUCTIONS 0 0 0 0 0 0
427 INTEREST ON LONG-TERM
DEBT 0 0 0 0 0 0
430 INTEREST ON DEBT TO
ASSOCIATE COMPANIES 0 0 0 0 0 0
431 OTHER INTEREST EXPENSE 0 0 0 0 0 0
- - -----------------------------------------------------------------------------
TOTAL EXPENSES = 3,093 13,664 7,367 43,192 1,687 8,203
====================================================
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
------------------------------------
ACCOUNT
NUMBER (10) (11) (12) (13) (14) (15) (16) (17) (18)
- - -----------------------------------------------------------------------------
(Thousands of Dollars)
920 5,321 394 19,102 6,288 2,808 1,958 12,861 8,027 0
921 291 308 2,666 850 380 761 1,815 1,536 0
922 0 0 0 0 0 0 0 0 0
923 2,346 164 1,105 4,223 1,264 428 4,740 2,065 0
924 0 0 0 0 56 0 0 0 0
925 190 0 0 30 429 0 0 34 0
926 30,661 0 9 0 0 54 0 0 7,253
928 0 0 31 0 229 0 (6) 0 0
930.1 0 0 0 0 0 0 0 0 0
930.2 493 14 2 204 286 116 2,162 0 0
931 172 0 2,365 3 0 24 0 1,817 0
932 0 0 137 110 0 0 16 109 0
403 0 0 0 0 0 0 0 0 0
408 0 0 0 0 0 0 0 0 13,791
409 0 0 0 0 0 0 0 0 1,000
410 0 0 0 0 0 0 0 0 420
411 0 0 0 0 0 0 0 0 (1,420)
411.5 0 0 0 0 0 0 0 0 0
426.1 2 0 0 438 0 0 0 0 0
426.5 0 1 0 38 0 2,865 0 0 0
427 0 0 0 0 0 0 0 0 0
430 0 0 0 0 0 0 0 0 0
431 0 0 0 0 0 0 0 0 16
- - -----------------------------------------------------------------------------
TOTAL
EXPENSES 39,476 881 25,417 12,184 5,452 6,206 21,588 13,588 21,060
====================================================================
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE XVII
-------------
KEYS FOR SERVICE FUNCTIONS
--------------------------
KEYS SERVICE FUNCTION
---- ----------------
(1) Chairman/President and Chief Executive Officer
(2) Executive V.P. - Nuclear
(3) V.P. Fossil and Hydro Engineering and Operations
(4) Executive V.P. and Chief Financial Officer
(5) V.P. and Controller
(6) V.P. and Treasurer
(7) V.P. - Information Resources
(8) Director - Internal Audit
(9) V.P. - Purchasing and General Services
(10) V.P. - Human Resources
(11) Senior V.P. - Customer Service Operations
(12) V.P. - Transmission and Distribution
(13) Director - Customer Service
(14) V.P. - Secretary and General Counsel
(15) V.P. - Public Affairs
(16) Senior V.P. - Corporate Affairs
(17) New England Power Pool
(18) Corporate Expenses - unallocated
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
DEPARTMENTAL ANALYSIS OF SALARIES
---------------------------------
ACCOUNT 920
DEPARTMENTAL SALARY EXPENSE
NAME OF DEPARTMENT INCLUDED IN AMOUNTS BILLED TO NUMBER OF
- - ------------------ ------------------------------------ PERSONNEL
Indicate each dept. TOTAL PARENT OTHER NON END
or service function. AMOUNT COMPANY ASSOCIATES ASSOCIATES OF YEAR
- - -------------------- -------------------------------------- ---------
(Thousands of Dollars)
Chairman/President and Chief
Executive Officer 1,212 27 1,089 96 5
Executive V.P. - Nuclear 64,008 0 48,480 15,528 689
V.P. Fossil and Hydro
Engineering and Operations 9,824 0 9,551 273 118
Executive V.P. Finance and
Chief Financial Officer 845 1 822 22 10
V.P. and Controller (1) 12,059 8 11,533 518 212
V.P. and Treasurer 4,381 7 4,126 248 84
V.P. Information Resources 20,202 0 19,194 1,008 286
Director Internal Audit 1,493 8 1,340 145 26
V.P. Purchasing and General
Services (2) 8,209 0 7,572 637 167
V.P. Human Resources (3) 5,436 0 5,058 378 91
Senior V.P. Customer Service
Operations 394 0 393 1 3
V.P. Transmission and
Distribution 19,102 0 16,321 2,781 305
Director - Customer Service 6,288 0 6,274 14 131
V.P., Secretary and
General Counsel 2,808 22 2,669 117 47
V.P. Public Affairs (4) 2,010 0 1,773 237 30
Senior V.P. Corporate
Affairs 12,861 16 12,532 313 190
New England Power Pool 8,027 0 150 7,877 128
-------------------------------------- ---------
179,159 89 148,877 30,193 2,522
====================================== =========
(1) Total amount includes 1,000 of payroll overhead.
(2) Total amount includes 2,848,000 of payroll overhead.
(3) Total amount includes 115,000 of payroll overhead.
(4) Total amount includes 52,000 of payroll overhead.
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a breakdown by subaccount of outside services
employed. If the aggregate amounts paid to any one payee and
included within one subaccount is less than 25,000, only the
aggregate number and amount of all such payments included
within the subaccount need be shown. Provide a subtotal for
each type of service.
- - -----------------------------------------------------------------------------
RELATIONSHIP
"A"-ASSOCIATE
"NA"-NON
FROM WHOM PURCHASED ASSOCIATE AMOUNT
- - -----------------------------------------------------------------------------
(Thousands
of Dollars)
- - -----------------------------------------------------------------------------
AUDITING SERVICES
- - -----------------
ARTHUR ANDERSEN & COMPANY NA 101
KPMG PEAT MARWICK NA 216
MISCELLANEOUS ( 1 PAYEE) 3
--------
TOTAL AUDITING SERVICES 320
========
ENGINEERING SERVICES
- - --------------------
ABB ASEA BROWN BOVERI NA 56
ABB CE NUCLEAR POWER NA 41
ABB IMPELL CORPORATION NA 497
ABB POWER SYSTEMS ENERGY SERVICES INC NA 80
APPLIED ENGINEERING ASSOCIATES NA 116
B & W NUCLEAR SERVICE COMPANY NA 628
BABCOCK & WILCOX INDUSTRIES LIMITED NA 45
BARTLETT NUCLEAR INCORPORATED NA 151
BECHTEL POWER CORPORATION NA 377
BVH ENGINEERS INCORPORATED NA 27
COMBUSTION ENGINEERING NA 908
DDL OMNI ENGINEERING NA 26
DEVONRUE LIMITED NA 149
EBASCO SERVICES INCORPORATED NA 2,348
ELECTRIC POWER RESEARCH INSTITUTE NA 808
ERIN ENGINEERING AND RESEARCH INC NA 244
GENERAL ELECTRIC COMPANY NA 266
GENERAL PHYSICS CORP NA 124
KALSI ENGINEERING INCORPORATED NA 37
MARINER ENGINEERING INCORPORATED NA 107
NRT TECHNICAL INCORPORATED NA 1,047
NUCLEAR ENERGY SERVICES NA 2,103
NUCLEAR UTILITIES SERVICES COMPANY NA 464
NUS CORPORATION NA 53
PROTO POWER CORPORATION NA 1,358
QUADREX ENERGY SERVICES CORPORATION NA 112
SIEMENS NUCLEAR POWER CORPORATION NA 54
SOUTHERN ELECTRIC INTERNATIONAL INC NA 64
SPEER CONSULTANTS INCORPORATED NA 465
STONE & WEBSTER ENGINEERING CORP NA 8,385
TAD ENERGY SERVICES NA 305
TECHNICAL AID CORPORATION NA 2,838
TECHNOLOGY RESEARCH CORPORATION NA 932
TELEDYNE BROWN ENGINEERING NA 71
TELEDYNE ENGINEERING SERVICES NA 265
TLG ENGINEERING INCORPORATED NA 28
WESTINGHOUSE ELECTRIC CORP NA 810
YALE UNIVERSITY SCHOOL OF MEDICINE NA 48
---------
TOTAL ENGINEERING SERVICES 26,437
=========
LEGAL SERVICES
- - --------------
CARMODY & TORRANCE NA 743
DAY BERRY & HOWARD NA 257
KING & SPALDING NA 220
NEWMAN & HOLTZINGER, PC NA 124
RATH YOUNG PIGNATELLI & DYER PA NA 129
WINSTON & STRAWN NA 25
MISCELLANEOUS (28 PAYEES) 100
---------
TOTAL LEGAL SERVICES 1,598
=========
INVESTOR RELATIONS SERVICES
- - ---------------------------
MISCELLANEOUS (20 PAYEES) NA 63
==========
OTHER SERVICES
- - --------------
A R JOSEPH ASSOCIATES NA 79
ACCOUNTING FUTURES INCORPORATED NA 95
ACCRA TEMP INCORPORATED NA 31
ADAPTIVE SYSTEMS INC NA 47
ADEPT INCORPORATED NA 435
AEGIS INTERNATIONAL INCORPORATED NA 146
AEROTEK NA 111
AGS INFORMATION SERVICES NA 47
ALDEN RESEARCH LABORATORY NA 127
ALLIED PRINTING SERVICES INCORPORATED NA 195
ALTRAN CORPORATION NA 892
AM COMPUTER PRODUCTS INCORPORATED NA 55
AMERICAN DESIGN COMPANY INCORPORATED NA 51
AMERICAN ELECTRIC POWER SERVICE CORP NA 26
AMERICAN ENTERPRISE INSTITUTE NA 25
AMERICAN MANAGEMENT SYSTEMS INCORPORATED NA 36
AMERICAN VAN & STORAGE SYSTEMS INC NA 32
AMERITECH INFORMATION SYSTEMS NA 124
AMODIO MOVING INCORPORATED NA 142
ANDERSEN CONSULTING NA 492
ANDREA HUNT PHD PC NA 77
APEX DATA SERVICES INCORPORATED NA 507
APPLIED ENERGY GROUP INCORPORATED NA 48
ARTHUR ANDERSEN & COMPANY NA 540
ATLAS CONSULTING GROUP INCORPORATED NA 763
AT&T NA 34
AVIATION SERVICES INCORPORATED NA 192
AVTRON MANUFACTURING INCORPORATED NA 28
BARAKAT & CHAMBERLIN INCORPORATED NA 121
BARRIEAU MOVING & STORAGE NA 43
BELL ATLANTIC BUSINESS SUPPLIES NA 53
BENSINGER DUPONT & ASSOCIATES INC NA 28
BKM FLOORCOVERING INCORPORATED NA 26
BKM TOTAL OFFICE OF SPRINGFIELD NA 43
BUSINESS MANAGEMENT ASSOCIATES NA 27
CANTEEN INTERSTATE UNITED CORPORATION NA 145
CARROLL TRAVEL NA 37
CDI CORPORATION NA 63
CENTURY HILLS 84 MANAGEMENT COMPANY NA 34
CGS TEMPORARY SERVICES NA 78
CHARLES RIVER ASSOCIATES INC NA 73
CHARLES S ONDASH NA 77
CODEX CORPORATION NA 29
COLLABORATIVE TECHNOLOGIES CORPORATION NA 25
COMMAND SYSTEMS INCORPORATED NA 32
COMMONWEALTH RELOCATION SERVICES INC NA 25
COMPUTERLAND CORPORATION NA 81
CONNECTICUT ASSOC FOR HUMAN SERVICES NA 33
CONNECTICUT CABLE CONSTRUCTION NA 34
CONNECTICUT HOUSING INVESTMENT FUND INC NA 1,835
CONSERVATION LAW FOUNDATION NA 200
CORE CORPORATION NA 742
CORPORATE TEMPORARY SERVICES INC NA 70
CREDIT BUREAU COLLECTIONS NA 82
DATA MAIL INCORPORATED NA 259
DDI CUSTOMER SERVICE INCORPORATED NA 40
DEVELOPMENT DIMENSIONS INTERNATIONAL NA 36
DIGITAL EQUIPMENT CORPORATION NA 401
DR ANDREW J HSI PE NA 66
DRI MCGRAW HILL NA 135
DUBOSE ASSOCIATES INCORPORATED NA 115
DUNBAR ARMORED SECURITY INC NA 85
EASTON CONSULTANTS INCORPORATED NA 72
ELECTROTEK CONCEPTS INC NA 26
EMPLOYMENT LEARNING INNOVATIONS INC NA 41
ENERGY MANAGEMENT ASSOCIATES INC NA 38
ENGINEERING SOFTWARE SOLUTIONS INC NA 37
EPRI NA 140
EQE INTERNATIONAL INCORPORATED NA 83
ERNST & YOUNG NA 297
ESCA CORPORATION NA 200
EXCELLENT OFFICE SYSTEMS INCORPORATED NA 37
F J DAHILL CO INC NA 33
F J MURPHY JR NA 42
FEOLE TECHNOLOGIES INC NA 99
FINANCIAL COLLECTION AGENCIES NA 124
FRG CORPORATION NA 151
GABOR KENTON & ASSOCIATES INCORPORATED NA 42
GAIL M HEISER NA 61
GARTNER GROUP INCORPORATED NA 74
GERALD R BROWNE NA 88
GILBANE BUILDING COMPANY NA 599
GILBERT COMMONWEALTH INCORPORATED NA 80
GROVE HILL MEDICAL CENTER NA 98
HALLIBURTON NUS CORP NA 149
HARTFORD GRADUATE CENTER NA 49
HARVARD UNIVERSITY NA 51
HAY MANAGEMENT CONSULTANTS NA 617
HEALTH RESOURCES NA 117
HEAT EXCHANGER SYSTEMS INCORPORATED NA 70
HEC INCORPORATED A 76
HEIDRICK AND STRUGGLES INCORPORATED NA 62
HEMANT Y MARATHE NA 57
HEWLETT PACKARD NA 29
HOFBAUER ASSOCIATES INCORPORATED NA 36
HOLTEC INTERNATIONAL NA 216
HOLYOKE GAS & ELECTRIC DEPARTMENT NA 218
HOLYOKE WATER POWER COMPANY A 79
HSB RELIABILITY TECHNOLOGIES NA 93
INGERSOLL RAND SERVICE DIVISION NA 34
INGRESS CONSULTANT NA 33
INSTITUTE OF NUCLEAR POWER OPERATIONS NA 35
INTEGRATED NUCLEAR DATA EXCHANGE NA 142
INTERGRAPH CORPORATION NA 46
INTERNATIONAL BUSINESS MACHINES CORP NA 562
INVESTCONSULT INCORPORATED NA 99
JACK HOUGH ASSOCIATES INC NA 60
JAMES W SEWALL COMPANY NA 42
JFG ASSOCIATES NA 45
JOBPRO NA 180
K C CHOUNG INCORPORATED NA 107
KELLY SERVICES INCORPORATED NA 765
KEMPER MANAGEMENT SERVICES INC NA 256
KLEENRITE JANITOR SERVICE NA 32
LAWLER MATUSKY & SKELLY ENGINEERS NA 40
LCG CONSULTING NA 28
LEADERSHIP AND LEARNING INCORPORATED NA 101
LIBERTY TECHNOLOGY CENTER NA 98
LIUSKI INTERNATIONAL INCORPORATED NA 40
LRS INCORPORATED NA 59
MACRO CORPORATION NA 32
MANAGEMENT ANALYSIS COMPANY NA 510
MANPOWER INCORPORATED NA 607
MARQUARDT & ROCHE INC NA 168
MARYANNE MURACH NA 60
MASSACHUSETTS INSTITUTE OF TECHNOLOGY NA 50
MCKINSEY & COMPANY INCORPORATED NA 2,049
MEASUREMENT DIMENSIONS INCORPORATED NA 26
MEMOREX TELEX NA 75
MOTION INCORPORATED NA 65
MTW CORPORATION NA 389
NATIONAL EDUCATION TRNG CORP NA 45
NATIONWIDE MOVING & STORAGE COMPANY INC NA 25
NETWORK 1 INCORPORATED NA 27
NEW ENGLAND MECHANICAL SERVICES INC NA 67
NEW ENGLAND POWER COMPANY NA 33
NEW ENGLAND TELEPHONE NA 34
NICHOLAS S CELIA PE NA 37
NMAC NA 27
NORTH ATLANTIC ENERGY SERVICE CORP AGENT NA 27
NUCLEAR LOGISTICS INCORPORATED NA 58
NYNEX MERIDIAN SYSTEMS NA 516
OGDEN ALLIED SECURITY SERVICES NA 94
OPTIONS UNLIMITED NA 71
P & I CONSULTING LTD NA 95
PAS EXPEDITING SERVICES NA 84
PERSONNEL DECISIONS INCORPORATED NA 29
PHILADELPHIA ELECTRIC COMPANY NA 180
PLANERGY INC NA 62
POWER TECHNOLOGIES INCORPORATED NA 93
PREMIER DATA SERVICES INCORPORATED NA 51
PRIORITY EXPRESS INC NA 92
PROJECT SOFTWARE & DEVELOPMENT INC NA 254
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE A 31
PURCELL ASSOCIATES NA 30
QUALITY APPLICATIONS INCORPORATED NA 376
QUALITY SYSTEMS INCORPORATED NA 140
RCG HAGLER BAILLY INCORPORATED NA 182
REICHMAN KARTEN SWORD INCORPORATED NA 55
RESOURCES CONSERVATION INCORPORATED NA 50
RLW ANALYTICS INCORPORATED NA 561
ROGER E KOONTZ NA 52
RUSSELL GIBSON VON DOHLEN INCORPORATED NA 42
SHIPMANS FIRE EQUIPMENT COMPANY INC NA 177
SMITHKLINE BEECHAM LABORATORIES NA 56
SOFTAIDE SERVICES NA 138
SOUTHEASTERN PULMONARY ASSOCIATES NA 34
SOUTHERN NEW ENGLAND TELEPHONE COMPANY NA 62
STEVEN B BUTTNER NA 52
STEVENSON & ASSOCIATES NA 43
SYNERGIC RESOURCES CORPORATION NA 54
SYNETICS CORPORATION NA 107
TESSERACT CORPORATION NA 74
THE BRS GROUP INCORPORATED NA 26
THE FLEMING GROUP NA 358
THE HARTY PRESS INCORPORATED NA 62
THE HAYO CONSULTANTS NA 50
THE HULL PRINTING COMPANY INCORPORATED NA 64
THE KIRBY GROUP NA 29
THE NICHOLAS GROUP NA 77
THE WAVERLY PRINTING COMPANY NA 99
THE WHITEMAN RESOURCE NA 56
THE WINN COMPANY NA 31
TOWERS PERRIN NA 219
TUTHILL ASSOCIATES INC NA 35
UNITED ENERGY SERVICES CORPORATION NA 379
UNITED WAY OF CONNECTICUT NA 50
UNIVERSITY OF CONNECTICUT NA 39
UTILITY MANAGEMENT SERVICES GROUP INC NA 89
WEST PUBLISHING COMPANY NA 29
WFC NA 32
WILLIAM M MERCER NA 55
WOODS ELECTRICAL COMPANY INCORPORATED NA 33
WORK OPPORTUNITY CENTER INC NA 108
XENERGY INC NA 248
YANKEE ATOMIC ELECTRIC COMPANY NA 1,629
MISCELLANEUOS (1,391 PAYEES) NA 5,714
---------
TOTAL OTHER SERVICES 35,594
=========
GRAND TOTAL OUTSIDE SERVICES 64,012
=========
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
EMPLOYEE PENSIONS AND BENEFITS
ACCOUNT 926
INSTRUCTIONS: Provide a listing of each pension plan and benefit
program provided by the service company. Such
listing should be limited to 25,000.
- - ------------------------------------------------------------------------
DESCRIPTION AMOUNT
- - ------------------------------------------------------------------------
(Thousands of Dollars)
Pension Plan 1,632
Supplemental Retirement and Savings Plan 6,015
Group Life, Long-term Disability, Hospital
and Medical Insurance Expenses 18,309
Post retirement medical benefit - FAS 106 6,454
Early retirement program 7,253
Educational Activities 347
Consulting Expenses 390
Employee Relocation Expenses 82
Cafeteria Expenses 194
System Newspaper 54
Other Employee Benefits Expenses 781
-------
TOTAL 41,511
=======
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
GENERAL ADVERTISING EXPENSES
ACCOUNT 930.1
INSTRUCTIONS: Provide a listing of the amount included in Account 930.1,
"General Advertising Expenses," classifying the items according
to the nature of the advertising and as defined in the account
definition. If a particular class includes an amount in excess
of 3,000 applicable to a single payee, show separately the
name of the payee and the aggregate amount applicable thereto.
- - ---------------------------------------------------------------------------
DESCRIPTION NAME OF PAYEE AMOUNT
---------------------------------------------------------------------------
(Thousands of Dollars)
-
---------
TOTAL -
=========
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
MISCELLANEOUS GENERAL EXPENSES
ACCOUNT 930
INSTRUCTIONS: Provide a listing of the amount included in Account 930,
"Miscellaneous General Expenses," classifying such expenses
according to their nature. Payments and expenses permitted
by Section 321(b)(2) of the Federal Election Campaign Act,
as amended by Public Law 94-283 in 1976 (2 U.S.C. Section
441(b)(2)) shall be separately classified.
- - -------------------------------------------------------------------------
DESCRIPTION AMOUNT
- - -------------------------------------------------------------------------
(Thousand of Dollars)
Shareholder reports and meetings 413
Trustee registration & transfer agent fee & expense 117
Security facilities 393
Economic development 1,997
Public and community relations expenses 88
Recruitment expenses 382
Pre-employment medical expenses 32
Low income assistance 116
Employee development expenses 24
New York Stock Exchange - annual listing fee 68
Northeast Power Coordinating Council 206
Other miscellaneous expenses 580
-----------
TOTAL 4,416
===========
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
RENTS
ACCOUNT 931
INSTRUCTIONS: Provide a listing of the amount included in Account 931,
"Rents," classifying such expenses by major groupings of
property, as defined in the account definition of the
Uniform System of Accounts.
- - ----------------------------------------------------------------------
TYPE OF PROPERTY AMOUNT
- - ----------------------------------------------------------------------
(Thousands of Dollars)
Buildings/office space 8,533
Computer/Office equipment 16,171
Vehicles 283
-------
TOTAL 24,987
=======
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
TAXES OTHER THAN INCOME TAXES
ACCOUNT 408
INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other Than
Income Taxes." Separate the analysis into two groups:
(1)Other than U.S. Government taxes, and (2) U.S.
Government taxes. Specify each of the various kinds of
taxes and show the amounts thereof. Provide a subtotal
for each class of tax.
- - -------------------------------------------------------------------------
KIND OF TAX AMOUNT
- - -------------------------------------------------------------------------
(Thousands of Dollars)
(1) Other Than U.S. Government Taxes:
Connecticut Unemployment 442
Connecticut Sales Tax 12
Massachusetts Unemployment 307
Massachusetts Universal Health Tax 3
Local property 679
---------
Sub-Total 1,443
---------
(2) U.S. Government Taxes:
Federal Insurance Contribution Act 9,576
Medicare Tax 2,585
Federal Unemployment 187
---------
Sub-Total 12,348
---------
TOTAL 13,791
=========
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
DONATIONS
ACCOUNT 426.1
INSTRUCTIONS: Provide a listing of the amount included in Account 426.1,
"Donations," classifying such expenses by its purpose. The
aggregate number and amount of all items of less than 3,000
may be shown in lieu of details.
- - ----------------------------------------------------------------------------
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
- - ----------------------------------------------------------------------------
(Thousands
of Dollars)
UNIVERSITY OF CONNECTICUT CHARITABLE CONTRIBUTION AND EDUCATIONAL
GRANT 59
HARTFORD WHALERS CHARITABLE CONTRIBUTION 28
RENSSELAER POLYTECHNIC CHARITABLE CONTRIBUTION AND EDUCATIONAL
INSTITUTE GRANT 30
MASSACHUSETTS INSTITUTE CHARITABLE CONTRIBUTION AND EDUCATIONAL
OF TECHNOLOGY GRANT 25
UNIVERSITY OF HARTFORD CHARITABLE CONTRIBUTION AND EDUCATIONAL
GRANT 23
TEIKYO POST UNIVERSITY CHARITABLE CONTRIBUTION AND EDUCATIONAL
GRANT 20
SAINT JOSEPH COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL
GRANT 18
UNIVERSITY OF CHARITABLE CONTRIBUTION AND
MASSACHUSETTS EDUCATIONAL GRANT 18
MANHATTAN COLLEGE CHARITABLE CONTRIBUTION AND
EDUCATIONAL GRANT 16
CENTRAL CONNECTICUT STATE CHARITABLE CONTRIBUTION AND EDUCATIONAL
UNIVERSITY GRANT 9
HARTFORD GRADUATE CENTER CHARITABLE CONTRIBUTION AND EDUCATIONAL
GRANT 9
NORTHEASTERN UNIVERSITY CHARITABLE CONTRIBUTION AND EDUCATIONAL
GRANT 8
WORCESTER POLYTECH CHARITABLE CONTRIBUTION AND EDUCATIONAL
INSTITUTE GRANT 8
NORTHWESTERN COMMUNITY CHARITABLE CONTRIBUTION AND EDUCATIONAL
COLLEGE GRANT 8
WESLEYAN UNIVERSITY CHARITABLE CONTRIBUTION AND EDUCATIONAL
GRANT 8
NAUGATUCK VALLEY COMMUNITY CHARITABLE CONTRIBUTION AND EDUCATIONAL
GRANT 7
WENTWORTH INSTITUTE CHARITABLE CONTRIBUTION AND EDUCATIONAL
GRANT 6
WESTERN NEW ENGLAND CHARITABLE CONTRIBUTION AND EDUCATIONAL
COLLEGE GRANT 5
URBAN LEAGUE OF GREATER
HARTFORD INC CHARITABLE CONTRIBUTION 5
CAPITAL COMMUNITY CHARITABLE CONTRIBUTION AND EDUCATIONAL
TECHNICAL COLLEGE GRANT 5
PURDUE UNIVERSITY CHARITABLE CONTRIBUTION AND EDUCATIONAL
GRANT 4
HARVARD UNIVERSITY CHARITABLE CONTRIBUTION AND EDUCATIONAL
GRANT 4
CLARKSON UNIVERSITY CHARITABLE CONTRIBUTION AND EDUCATIONAL
GRANT 4
CONNECTICUT COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL
GRANT 4
PENNSYLVANIA STATE CHARITABLE CONTRIBUTION AND EDUCATIONAL
UNIVERSITY GRANT 3
SPRINGFIELD COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL
GRANT 3
MISCELLANEOUS (320 PAYEES) CHARITABLE CONTRIBUTION AND EDUCATIONAL
GRANT 131
---------
TOTAL 468
=========
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
OTHER DEDUCTIONS
ACCOUNT 426.5
INSTRUCTIONS: Provide a listing of the amount included in Account 426.5,
"Other Deductions," classifying such expenses according
to their nature.
- - -----------------------------------------------------------------------------
DESCRIPTION NAME OF PAYEE AMOUNT
- - -----------------------------------------------------------------------------
(Thousands of Dollars)
Executive incentive
compensation plan Various NUSCO Officers 1,714
Legislative services Updike Kelly & Spellacy, PC 106
Promoting public awareness
of energy issues U.S. Council on Energy Awareness 468
Accruals/(surrenders), net for
life insurance of officers and
employees where the company is
the beneficiary 29
Legal settlements Various recipients 670
Miscellaneous (116 items) 218
-----
TOTAL 3,205
=====
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE XVIII
NOTES TO STATEMENTS OF INCOME
INSTRUCTIONS: The space below is provided for important notes regarding the
statement of income or any account thereof. Furnish
particulars as to any significant increases in services
rendered or expenses incurred during the year. Notes relating
to financial statements shown elsewhere in this report may be
indicated here by reference.
See Notes to Financial Statements on pages 19 through 19F.
ANNUAL REPORT OF NORTHEAST UTILTIES SERVICE COMPANY
ORGANIZATION CHART AS OF DECEMBER 31, 1993
President and Chief Executive Officer - Chairman
- Vice President, Fossil & Hydro, Engineering & Operations
- Executive Vice President, Nuclear
- Executive Vice President and Chief Financial Officer
- Vice President, Purchasing & General Services
- Vice President & Controller
- Vice President & Treasurer
- Vice President, Information Resources
- Director, Internal Audit
- Vice President Human Resources
- Senior Vice President, Corporate Affairs
- Vice President, Secretary & General Counsel
- Senior Vice President, Customer Service Operations
- Director, Customer Service
- Vice President, Transmission & Distribution
- Vice President, Public Affairs
NORTHEAST UTILITIES SERVICE COMPANY
-----------------------------------
METHODS OF ALLOCATION
---------------------
For the year ended December 31, 1993
------------------------------------
1) Composite (Operating Revenues, Customers, Employees, Payroll and Assets)
2) Cogeneration Units
3) Conservation and Load Management Programs and Expenditures
4) Peak Load
5) Fuel Purchased
6) Gross Plant Assets
7) Invoices Processed
8) Generation
9) Materials and Supplies
10) Megawatt Sales
11) Direct Charged Costs
12) Payroll
13) Operating Revenues
14) Bulk Sales Energy/Capacity
15) Assets
16) Union Employees
17) Vehicle Lease Costs
18) Customers
19) Vehicles
20) Nuclear Units
21) Borrowing Limits
22) Employees
NOTE: Allocations may include a combination of the above factors.
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
The following annual statement was supplied to each associate company in
support of the amount of compensation for use of capital billed during 1993:
In accordance with Instruction 01-12 of the Securities and
Exchange Commission's Uniform System of Accounts for Mutual
Service Companies and Subsidiary Service Companies, Northeast
Utilities Service Company submits the following information on
the billing of interest on borrowed funds to associated companies
for the year 1993:
(A) Amount of Interest Billed to (See Note)
(B) The basis for billing of interest to the associated
companies is payroll billed to the associated companies
from the service company.
NOTE: For the associate companies and amounts, see "Analysis of Billing -
Associate Companies" on page 21. During 1993 there was no interest
billed to Associated Companies.
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
SIGNATURE CLAUSE
Pursuant to the requirements of the Public Utility Holding Company Act of
1935 and the rules and regulations of the Securities and Exchange Commission
issued thereunder, the undersigned company has duly caused this report to be
signed on its behalf by the undersigned officer thereunto duly authorized.
NORTHEAST UTILITIES SERVICE COMPANY
-----------------------------------
(Name of Reporting Company)
/s/ John W. Noyes
By: -----------------------------------
(Signature of Signing Officer)
John W. Noyes - Vice President and Controller
---------------------------------------------
(Printed Name and Title of Signing Officer)
Date: April 27, 1994
-----------------
