Form U -13 - 60
Mutual and Subsidiary Service Companies
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1996 and Ending December 31, 1996
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 J. Roman, 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
(Section 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, (Section 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.
LISTING 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 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 VIII 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 LIABILTIES 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 NONASSOCIATE 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 XVIII 35
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
--------------------------------------------
Page
Description of Reports or Statements No.
- ------------------------------------ -----
ORGANIZATION CHART 36
METHODS OF ALLOCATION 37
ANNUAL STATEMENT OF COMPENSATION FOR
USE OF CAPITAL BILLED 38
ELECTRIC POWER BROKERING AND MARKETING ACTIVITIES 38A
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
- ----------------------------------------------------------------------------------------
1996 1995
(Thousands of Dollars)
<S> <C> <C>
SERVICE COMPANY PROPERTY
------------------------
101 Service company property (Schedule II) $96,229 $95,672
107 Construction work in progress (Schedule II) 3,843 6,571
----------- -----------
Total Property 100,072 102,243
----------- -----------
108 Less accumulated provision for depreciation and
amortization of service company property (Schedule III) 54,841 62,933
----------- -----------
Net Service Company Property 45,231 39,310
----------- -----------
INVESTMENTS
-----------
123 Investments in associate companies (Schedule IV) - -
124 Other investments (Schedule IV) 4,815 4,630
----------- -----------
Total Investments 4,815 4,630
----------- -----------
CURRENT AND ACCRUED ASSETS
--------------------------
131 Cash 32,688 7,446
134 Special deposits - -
135 Working funds 470 471
136 Temporary cash investments (Schedule IV) 154,237 7,831
141 Notes receivable - -
143 Accounts receivable 35,251 28,805
144 Accumulated provision of uncollectible accounts - -
146 Accounts receivable from associate companies (Schedule V) 167,866 94,551
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies 71 129
163 Stores expense undistributed (Schedule VII) - -
165 Prepayments 1,828 1,051
174 Miscellaneous current and accrued assets (Schedule VIII) - -
----------- -----------
Total Current and Accrued Assets 392,411 140,284
----------- -----------
DEFERRED DEBITS
---------------
181 Unamortized debt expense - -
184 Clearing accounts 842 172
186 Miscellaneous deferred debits (Schedule IX) 14,733 6,440
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes 16,309 14,913
----------- -----------
Total Deferred Debits 31,884 21,525
----------- -----------
TOTAL ASSETS AND OTHER DEBITS $474,341 $205,749
=========== ===========
</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
- ----------------------------------------------------------------------------------------
1996 1995
(Thousands of Dollars)
<S> <C> <C>
PROPRIETARY CAPITAL
-------------------
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 123,957 49,618
233 Notes payable to associate companies (Schedule XIII) 216,275 65,275
234 Accounts payable to associate companies (Schedule XIII) 33,179 14,016
236 Taxes accrued 15,583 7,619
237 Interest accrued 2 163
238 Dividends declared - -
241 Tax collections payable (376) (585)
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 47,519 42,985
----------- -----------
Total Current and Accrued Liabilities 436,139 179,091
----------- -----------
DEFERRED CREDITS
----------------
253 Other deferred credits 38,201 26,657
255 Accumulated deferred investment tax credits - -
----------- -----------
Total Deferred Credits 38,201 26,657
----------- -----------
282 ACCUMULATED DEFERRED INCOME TAXES - -
--------------------------------- ----------- -----------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $474,341 $205,749
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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 $838 $1,059 $1,897
304 LAND AND LAND RIGHTS
305 STRUCTURES AND IMPROVEMENTS
306 LEASEHOLD IMPROVEMENTS 2,812 4 2,816
307 EQUIPMENT (2) 74,616 15,072 16,490 73,198
308 OFFICE FURNITURE AND EQUIPMENT 15,803 855 (3) 16,661
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT 2 2
310 AIRCRAFT AND AIRPORT EQUIPMENT
311 OTHER SERVICE COMPANY
PROPERTY (3) 1,601 54 1,655
---------- --------- ----------- ---------- ----------
SUB-TOTAL 95,672 17,044 16,487 0 96,229
---------- --------- ----------- ---------- ----------
107 CONSTRUCTION WORK IN
PROGRESS (4) 6,571 (2,728) 3,843
---------- --------- ----------- ---------- ----------
TOTAL $102,243 $14,316 $16,487 $0 $100,072
========== ========= =========== ========== ==========
- -------------------------------------------------------------------------------------------
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
NONE
</TABLE>
<TABLE>
<CAPTION>
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)
<S> <C> <C>
307NA Automatic Data Processing Equipment $14,133 $47,102
307NB Construction Equipment 3 209
307NC Other Communication Equipment 834 21,842
307NL Research and Laboratory Equipment 93 3,865
307NM Microwave Equipment 9 168
307NP Printing and Stationery Equipment - 12
----------- ----------
TOTAL $15,072 $73,198
=========== ==========
- -------------------------------------------------------------------------------------------
(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>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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 $490 $134 $624
304 LAND AND LAND RIGHTS
305 STRUCTURES AND IMPROVEMENTS
306 LEASEHOLD IMPROVEMENTS 2,689 5 2,694
307 EQUIPMENT 44,901 7,887 16,494 (1) 36,293
308 OFFICE FURNITURE AND FIXTURES 14,110 250 (3) 14,363
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT 2 2
310 AIRCRAFT AND AIRPORT EQUIPMENT
311 OTHER SERVICE COMPANY
PROPERTY 741 124 865
---------- --------- ----------- ---------- ----------
TOTAL $62,933 $8,400 $16,491 ($1) $54,841
========== ========= =========== ========== ==========
- --------------------------------------------------------------------------------------------
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
NONE
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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 949 949
RABBI Trust Investment (Supplemental Executive
Retirement Savings Plan) 3,681 3,866
---------- ----------
Total - ACCOUNT 124 4,630 4,815
---------- ----------
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
AT&T Commercial Paper, due January 5, 1996 7,831 0
CDC Commercial Paper, due January 2, 1997 0 19,993
Duke Power Commercial Paper, due January 2, 1997 0 3,998
Halifax Commercial Paper, due January 2, 1997 0 24,913
J.P Morgan Commercial Paper, due January 2, 1997 0 5,482
Merrill Lynch Commercial Paper, due January 2, 1997 0 24,991
General Electric Commercial Paper, due January 3, 1997 0 16,924
John Hancock Commercial Paper, due January 3, 1997 0 10,627
Gannett Commercial Paper, due January 6, 1997 0 24,912
PHH Commercial Paper, due January 6, 1997 0 7,464
IBM Commercial Paper, due January 16, 1997 0 14,933
---------- ----------
Total - ACCOUNT 136 7,831 154,237
---------- ----------
GRAND TOTAL $12,461 $159,052
========== ==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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 $1,039 $598
The Connecticut Light and Power Company 7,999 47,972
The Rocky River Realty Company 224 0
Holyoke Water Power Company 557 1,084
Holyoke Power and Electric Company (6) (5)
Western Massachusetts Electric Company 3,020 11,964
Public Service Company of New Hampshire 6,469 13,681
North Atlantic Energy Corporation 36 35
North Atlantic Service Energy Corporation 1,773 1,588
The Quinnehtuk Company 4 4
Northeast Nuclear Energy Company 7,725 17,534
Charter Oak Energy Incorporated 67 65
COE (UK) Corporation 3 0
COE Development Corporation 246 169
Mode 1 Communications, Inc. 0 584
NUS Energy Partners, Inc. 0 282
HEC Inc. 120 36
---------- -----------
29,276 95,591
---------- -----------
NOTES RECEIVABLE (MONEY POOL) FROM ASSOCIATE COMPANIES
- -------------------------------------------------------
The Connecticut Light and Power Company 10,250 0
North Atlantic Energy Corporation 8,000 2,500
The Rocky River Realty Company 16,500 16,900
The Quinnehtuk Company 4,800 5,000
Western Massachusetts Electric Company 24,050 47,400
HEC Inc. 1,675 475
---------- -----------
65,275 72,275
---------- -----------
TOTAL $94,551 $167,866
========== ===========
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
See page 10A for details
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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)
<S> <C>
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
Northeast Utilities $5,437
The Connecticut Light and Power Company 200,414
Holyoke Water Power Company 3,306
Western Massachusetts Electric Company 43,760
Public Service Company of New Hampshire 89,381
North Atlantic Energy Corporation 419
North Atlantic Service Energy Corporation 7,154
Northeast Nuclear Energy Company 31,845
Charter Oak Energy Incorporated 177
COE Development Corporation 1,256
COE (UK) Corporation 14
COE Argentina II Corporation 27
NUSCO Energy Partners, Inc. 1
Mode 1 Communication, Inc. 271
The Quinnehtuk Company 15
The Rocky River Realty Company 190
HEC Inc. 47
-----------
TOTAL $383,714
===========
Convenience payments result primarily from the following items:
Net Power Exchange $146,415
Employee Pensions and Benefits 110,570
U.S. Department of Energy Fees 5,591
Electric Power Research Institute Fees 5,018
Legal Services 7,727
Nuclear Insurance 3,689
Non-Nuclear Insurance 7,516
Engineering Services 9,463
Communication Expenses 10,389
Payroll Deductions to Credit Unions 30,733
Temporary Personnel Services 1,659
Tree Trimming 3,272
Conservation Consulting 1,261
Storm Emergency 1,118
Overhead Line Construction 1,330
Computers 1,371
Rabbi Trust Investment, Supplemental Executive Retirement Savings Plan 3,300
Fuel Purchases 5,523
Miscellaneous (1402 items) 27,769
-----------
TOTAL $383,714
===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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)
<S> <C> <C> <C>
ACCOUNT 152 - FUEL STOCK EXPENSES
UNDISTRIBUTED $499 $79 $578
The above fuel stock expenses are billed
back to each of the associated companies
listed below:
The Connecticut Light and Power Company (231) (34) (265)
Public Service Company of New Hampshire (191) (36) (227)
Western Massachusetts Electric Company (16) (3) (19)
Holyoke Water Power Company (61) (6) (67)
------- ------- -------
TOTAL $0 $0 $0
======= ======= =======
- --------------------------------------------------------------------------------------
SUMMARY: Fuel functions performed by the Service Company consist mainly of the
acquisition of fossil fuels.
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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)
<S> <C> <C> <C>
ACCOUNT 163 - STORES EXPENSE
UNDISTRIBUTED $1,976 $694 $2,670
The above stores expenses are billed back
to each of the companies listed below:
The Connecticut Light and Power Company (810) (33) (843)
Public Service Company of New Hampshire (228) (14) (242)
Western Massachusetts Electric Company (109) (5) (114)
Holyoke Water Power Company (38) (1) (39)
Northeast Nuclear Energy Company (681) (526) (1,207)
Connecticut Yankee Atomic Power Company -
(nonassociate company) (110) (115) (225)
------- ------- -------
TOTAL $0 $0 $0
======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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)
<S> <C> <C>
ACCOUNT 174 - MISCELLANEOUS CURRENT AND ACCRUED ASSETS $- $-
----------- ----------
TOTAL $- $-
=========== ==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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)
<S> <C> <C>
ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS
Unfunded supplemental executive retirement plan $3,319 $10,607
Agents account clearing 1,301 1,948
Employees performance payments 169 181
Receivable from VEBA trust for retiree's medical/life claims 0 954
Deposit for transmission services 0 954
Deposit for U.S. Behavioral Health 0 75
MIMS External Development Costs 1,579 0
Miscellaneous (7 items at beginning and 9 items at end of year) 72 14
----------- ----------
TOTAL $6,440 $14,733
=========== ==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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)
<S> <C>
ACCOUNT 188 - RESEARCH, DEVELOPMENT OR
DEMONSTRATION EXPENDITURES
Electric Trauma Research $90
EPRI Research Dues 1,854
Spent Fuel Engineering Support 30
Heat Pump Water Heater Research 50
Electric Vehicle Research 80
Miscellaneous, Various Co-funding projects, etc.(15 items) 170
The above expenses are billed back to each of the
associated companies listed below:
The Connecticut Light and Power Company (1,560)
Public Service Company of New Hampshire (340)
Western Massachusetts Electric Company (294)
Holyoke Water Power Company (46)
Northeast Nuclear Energy Company (25)
Northeast Atlantic Energy Service Company (1)
Connecticut Yankee Atomic Power Company -
(nonassociate company) (8)
-------
TOTAL $0
=======
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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 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>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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.
- -------------------------------------------------------------------------------------------------------
BALANCE BALANCE
TERMS OF OBLIG. DATE AT AT
CLASS & SERIES OF INTEREST AMOUNT BEGINNING DEDUCTIONS CLOSE
NAME OF CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR ADDITIONS (1) OF YEAR
- -------------------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C>
ACCOUNT 223-ADVANCES FROM
ASSOCIATE $- $- $- $- $-
COMPANIES:
ACCOUNT 224-OTHER
LONG-TERM
DEBT: - - - - -
----- ----- ----- ----- -----
$- $- $- $- $-
===== ===== ===== ===== =====
(1) GIVE AN EXPLANATION OF DEDUCTIONS:
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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)
<S> <C> <C>
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES
Northeast Utilities $9,675 $5,475
The Connecticut Light and Power Company 0 109,500
Public Service Company of New Hampshire 19,100 18,250
North Atlantic Energy Corporation 2,500 0
Northeast Nuclear Energy Company 27,000 75,000
Holyoke Water Power Company 7,000 8,500
----------- ----------
TOTAL $65,275 $216,725
=========== ==========
- ---------------------------------------------------------------------------------------
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
Northeast Utilities $250 $250
The Connecticut Light and Power Company 451 245
The Rocky River Realty Company 962 1,610
Public Service Company of New Hampshire 11,197 26,341
Western Massachusetts Electric Company 161 2,335
Northeast Nuclear Energy Company 880 1,767
North Atlantic Energy Service Company 109 364
Holyoke Water Power Company 6 267
----------- ----------
TOTAL $14,016 $33,179
=========== ==========
- ---------------------------------------------------------------------------------------
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES
Pension Cost $26,241 $28,625
Performance Reward Program 10,377 11,834
Payroll Accrual 4,915 6,089
Payroll Deductions 849 956
Early Retirement Program 588 0
Interest on Connecticut Sales Tax Settlement 15 15
----------- ----------
TOTAL $42,985 $47,519
=========== ==========
</TABLE>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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.
The Connecticut Light and Power Company (CL&P), Public Service Company of
New Hampshire (PSNH), Western Massachusetts Electric Company (WMECO),
Holyoke Water Power Company (HWP), and North Atlantic Energy Corporation
(NAEC) are the operating subsidiaries of the Northeast Utilities system
(the system) and are wholly owned by NU.
PUBLIC UTILITY REGULATION
NU is registered with the Securities and Exchange Commission (SEC) as a
holding company under the Public Utility Holding Company Act of 1935 (the
1935 Act), and it and its subsidiaries, including NUSCO, are subject to the
provisions of the 1935 Act.
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. 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 8.5 percent in 1996 and 6.0 percent in
1995. 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.
2. LEASES
NUSCO has entered into lease agreements for the use of data processing,
office equipment, vehicles, and office space. The provisions of these
lease agreements generally provide for renewal options. At December 31,
1996, NUSCO's capital lease obligations were immaterial.
Rental payments charged to operating expenses for 1996 and 1995 amounted to
approximately $613,000 and $936,000, respectively, for capital leases and
$18,862,000 and $17,822,000, respectively, for operating leases.
Interest included in capital lease rental payments for 1996 and 1995 was
approximately $53,000 and $84,600, respectively.
Future minimum rental payments, under long-term noncancelable leases as of
December 31, 1996, excluding executory costs such as property taxes, state
use taxes, insurance, and maintenance are approximately:
Period Operating Leases
(Thousands of Dollars)
1997......................... $ 13,700
1998......................... 7,800
1999......................... 6,100
2000......................... 5,800
2001......................... 5,700
After 2001................... 61,000
--------
Future minimum lease payments
$100,100
========
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. 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. Investing and borrowing
subsidiaries receive or pay interest based on the average daily Federal
Funds rate.
4. PENSION BENEFITS
The company participates in a uniform noncontributory-defined benefit
retirement plan covering all regular system employees (the plan). Benefits
are based on years of service and employees' highest eligible compensation
during 60 consecutive months of employment. The company's direct portion
of the system's pension cost approximated $0.9 million in 1996 and $0.7
million in 1995.
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.
For the Years Ended December 31, 1996 1995
(Thousands of Dollars)
Service cost..................................... $10,159 $10,658
Interest cost.................................... 24,602 22,879
Return on plan assets............................ (60,474) (80,726)
Net amortization................................. 26,629 47,870
Net periodic pension cost........................ $ 916 $ 681
For calculating pension cost, the following assumptions were used:
For the Years Ended December 31, 1996 1995
Discount rate.................................... 7.50% 8.25%
Expected long-term rate of return................ 8.75 8.50
Compensation/progression rate.................... 4.75 5.00
The following table represents the plan's funded status reconciled to the
Balance Sheets:
At December 31, 1996 1995
(Thousands of Dollars)
Accumulated benefit obligation at December 31, 1996
and 1995, includes $234,968,000 and $226,181,000,
respectively, of vested benefits .............. $260,444 $248,712
Projected benefit obligation (PBO)............... 342,345 330,552
Market value of plan assets...................... 432,211 390,877
Market value in excess of PBO.................... 89,866 60,325
Unrecognized transition amount................... (5,923) (6,530)
Unrecognized prior service costs................. 8,092 177
Unrecognized net gain............................ (120,660) (80,213)
Accrued pension liability........................ $(28,625) $(26,241)
The following actuarial assumptions were used in calculating the plan's
year-end funded status:
At December 31, 1995 1994
Discount rate.................................... 7.75% 7.50%
Compensation/progression rate.................... 4.75 4.75
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 for retired
employees (referred to as of Statement of Financial Accounting Standards
106 benefits (SFAS 106 benefits)). These benefits are available for
employees leaving the system who have met specified service requirements.
Total SFAS 106 benefits, part of which was deferred or charged to plant,
approximated $7.5 million in 1996 and $7.9 million in 1995.
On January 1, 1993, the accumulated postretirement benefit obligation
(APBO) represented the system's transition obligation upon the adoption of
SFAS 106. As allowed by SFAS 106, the company is amortizing its transition
obligation of approximately $52 million over a 20-year period. For current
employees and certain retirees, the total SFAS 106 benefit is limited to
two times the 1993 per retiree 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 components of SFAS 106 benefit costs are:
For the Years Ended December 31, 1996 1995
(Thousands of Dollars)
Service cost..................................... $2,083 $1,822
Interest cost.................................... 4,559 4,639
Return on plan assets............................ (2,401) (2,760)
Amortization of transition obligation............ 2,533 2,533
Other amortization, net.......................... 732 1,710
Net health care and life insurance costs......... $7,506 $7,944
For calculating SFAS 106 benefit costs, the following assumptions were
used:
For the Years Ended December 31, 1996 1995
Discount rate.................................... 7.50% 8.00%
Long-term rate of return -
Health assets, net of tax...................... 5.25 5.00
Life assets.................................... 8.75 8.50
The following table represents the plan's funded status reconciled to the
Balance Sheets:
At December 31, 1996 1995
(Thousands of Dollars)
APBO:
Retirees....................................... $40,460 $43,157
Fully eligible active employees................ 80 74
Active employees not eligible to retire........ 21,117 20,810
Total APBO....................................... 61,657 64,041
Less: Market value of plan assets............... 23,687 17,796
APBO in excess of plan assets.................... (37,970) (46,245)
Unrecognized transition amount................... 40,528 43,061
Unrecognized net loss (gain)..................... (2,558) 3,184
Prepaid (accrued) postretirement benefit costs... $ 0 $ 0
The following actuarial assumptions were used in calculating the plan's
year-end funded status:
At December 31, 1996 1995
Discount rate.................................... 7.75% 7.50%
Health care cost trend rate (a).................. 7.23 8.40
(a) The annual growth in per capita cost of covered health care benefits
was assumed to decrease to 4.9 percent by 2001.
The effect of increasing the assumed health care cost trend rates by one
percentage point in each year would increase the APBO as of December 31,
1995 by approximately $2.9 million and the aggregate of the service and
interest cost components of net periodic postretirement benefit cost for
the year then ended by $283,000. The trust holding the plan assets is
subject to federal income taxes at a 35 percent tax rate.
6. COMMITMENTS AND CONTINGENCIES
CONSTRUCTION PROGRAM
The construction program is subject to periodic review and revision.
NUSCO currently forecasts construction expenditures of approximately $77.3
million for the years 1997-2001, including approximately $30.3 million for
1997.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
FOR THE YEAR ENDED DECEMBER 31, 1996
SCHEDULE XV
COMPARATIVE INCOME STATEMENT
- --------------------------------------------------------------------------------------
ACCOUNT DESCRIPTION 1996 1995
- --------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
INCOME
------
457 Services rendered to associate companies $332,979 $285,696
458 Services rendered to nonassociate companies 48,566 43,422
421 Miscellaneous income or loss 151 132
------------ -----------
Total Income 381,696 329,250
------------ -----------
EXPENSE
-------
920 Salaries and wages 168,130 156,140
921 Office supplies and expenses 43,843 38,923
922 Administrative expense transferred-credit - -
923 Outside services employed 76,008 50,718
924 Property insurance 49 58
925 Injuries and damages 910 577
926 Employee pensions and benefits 29,811 29,336
928 Regulatory commission expense 74 37
930.1 General advertising expenses - -
930.2 Miscellaneous general expenses 7,274 5,701
931 Rents 26,946 25,637
932 Maintenance of structures and equipment 586 1,890
403 Depreciation and amortization expense 8,400 5,251
408 Taxes other than income taxes 13,140 11,169
409 Income taxes 4,670 (259)
410 Provision for deferred income taxes 7,252 1,216
411 Provision for deferred income taxes-credit (8,647) (957)
411.5 Investment tax credit - -
426.1 Donations 542 524
426.5 Other deductions 2,701 3,307
427 Interest on long-term debt - -
430 Interest on debt to associate companies - -
431 Other interest expense 7 (18)
------------ -----------
Total Expense 381,696 329,250
------------ -----------
Net Income or (Loss) $0 $0
============ ===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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
---------------------------------------------
<S> <C> <C> <C> <C>
Northeast Utilities $2,936 $137 $- $3,073
The Connecticut Light and
Power Company 137,443 13,603 - 151,046
Public Service Company of New
Hampshire 35,549 2,913 - 38,462
North Atlantic Energy
Corporation 111 8 - 119
Western Massachusetts
Electric Company 29,382 2,838 - 32,220
Holyoke Water Power Company 2,995 360 - 3,355
Holyoke Power and Electric
Company 7 1 - 8
Northeast Nuclear Energy Company 82,918 7,870 - 90,788
North Atlantic Energy Service
Corporation 10,354 389 - 10,743
The Quinnehtuk Company 31 4 - 35
The Rocky River Realty Company 214 5 - 219
Properties Inc. 1 - - 1
Charter Oak Energy Incorporated 600 34 - 634
COE Development Corporation 1,349 174 - 1,523
COE (UK) Corporation 12 1 - 13
COE Tejona Corp. 2 - - 2
COE Argentina II Corp. 15 1 - 16
Mode 1 Communications, Inc. 283 54 - 337
NUSCO Energy Partners, Inc. 272 10 - 282
HEC Inc. 99 4 - 103
---------- ---------- ----------- ----------
TOTAL $304,573 $28,406 $- $332,979
========== ========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
- -------------------------------------------------------------------------------------------------
DIRECT INDIRECT COMPENSATION EXCESS TOTAL
COSTS COSTS FOR USE TOTAL OR AMOUNT
NAME OF NONASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL COSTS DEFICIENCY BILLED
- -------------------------------------------------------------------------------------------------
(Thousands of Dollars)
458-1 458-2 458-3 458-4
------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Connecticut Yankee Atomic
Power Company (1) $ 24,466 $ 2,482 $ - $ 26,948 $ - $ 26,948
Connecticut Valley Electric
Exchange (1) 4,482 66 - 4,548 4,548
New England Power Exchange (1) 9,032 52 - 9,084 9,084
New England Power Planning
Committee (1) 4,497 91 - 4,588 4,588
New England Power Pool (1) 3,207 7 - 3,214 3,214
------------------------------------------------------------
45,684 2,698 - 48,382 - 48,382
------------------------------------------------------------
Other miscellaneous revenues: (2)
Southern New England Telephone Co. 160 - - 160 160
Other (32 companies) 24 - - 24 24
------------------------------------------------------------
184 - - 184 - 184
------------------------------------------------------------
TOTAL $ 45,868 $ 2,698 $ - $ 48,566 $ - $ 48,566
============================================================
</TABLE>
INSTRUCTIONS: Provide a brief description of the services rendered to each
nonassociate company:
(1) Northeast Utilities Service Company supplies centralized accounting,
administrative, data processing, engineering, financial, legal, operational,
planning, purchasing and/or other services.
(2) The services provided were primarily training services and rental of
video services.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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 144,666 2,126 146,792 21,058 280 21,338
921 OFFICE SUPPLIES AND EXPENSES 28,399 10,056 38,455 4,534 854 5,388
922 ADMINISTRATIVE EXPENSE TRANSFERRED-
CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 65,733 421 66,154 9,803 51 9,854
924 PROPERTY INSURANCE 0 45 45 0 4 4
925 INJURIES AND DAMAGES 834 0 834 76 0 76
926 EMPLOYEE PENSIONS AND BENEFITS 26,051 0 26,051 3,760 0 3,760
928 REGULATORY COMMISSION EXPENSE 68 0 68 6 0 6
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 6,108 830 6,938 221 115 336
931 RENTS 14,915 7,214 22,129 4,152 665 4,817
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 215 167 382 180 24 204
403 DEPRECIATION AND AMORTIZATION EXPENSE 0 7,682 7,682 0 718 718
408 TAXES OTHER THAN INCOME TAXES 11,418 0 11,418 1,722 0 1,722
409 INCOME TAXES 4,396 0 4,396 274 0 274
410 PROVISION FOR DEFERRED INCOME TAXES 7,252 0 7,252 0 0 0
411 PROVISION FOR DEFERRED INCOME TAXES -
CREDIT (8,647) 0 (8,647) 0 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0 0 0 0
426.1 DONATIONS 536 0 536 6 0 6
426.5 OTHER DEDUCTIONS 2,615 10 2,625 75 1 76
427 INTEREST ON LONG-TERM DEBT 0 0 0 0 0 0
431 OTHER INTEREST EXPENSE 6 0 6 1 0 1
------------------------------------------------------
SUBTOTAL EXPENSES = 304,565 28,551 333,116 45,868 2,712 48,580
COMPENSATION FOR USE OF EQUITY CAPITAL=
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES= 0 0
431 OTHER INTEREST EXPENSE= 0 0
---------- -----------
TOTAL EXPENSES = 333,116 48,580
421 MISCELLANEOUS INCOME - CREDIT 8 (145) (137) 0 (14) (14)
------------------------------------------------------
TOTAL COST OF SERVICE = 304,573 28,406 332,979 45,868 2,698 48,566
======================================================
</TABLE>
INSTRUCTION: Total cost of service will
equal for associate and nonassociate
companies the total amount billed under
their separate analysis of billing
schedules.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
TOTAL CHARGES FOR SERVICE
--------------------------------
ACCOUNT DIRECT INDIRECT
NUMBER DESCRIPTION OF ITEMS COST COST TOTAL
- ----------------------------------------------- --------------------------------
(Thousands of Dollars)
<S> <C> <C> <C>
920 SALARIES AND WAGES 165,724 2,406 168,130
921 OFFICE SUPPLIES AND EXPENSES 32,933 10,910 43,843
922 ADMINISTRATIVE EXPENSE TRANSFERRED-
CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 75,536 472 76,008
924 PROPERTY INSURANCE 0 49 49
925 INJURIES AND DAMAGES 910 0 910
926 EMPLOYEE PENSIONS AND BENEFITS 29,811 0 29,811
928 REGULATORY COMMISSION EXPENSE 74 0 74
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 6,329 945 7,274
931 RENTS 19,067 7,879 26,946
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 395 191 586
403 DEPRECIATION AND AMORTIZATION EXPENSE 0 8,400 8,400
408 TAXES OTHER THAN INCOME TAXES 13,140 0 13,140
409 INCOME TAXES 4,670 0 4,670
410 PROVISION FOR DEFERRED INCOME TAXES 7,252 0 7,252
411 PROVISION FOR DEFERRED INCOME TAXES -
CREDIT (8,647) 0 (8,647)
411.5 INVESTMENT TAX CREDIT 0 0 0
426.1 DONATIONS 542 0 542
426.5 OTHER DEDUCTIONS 2,690 11 2,701
427 INTEREST ON LONG-TERM DEBT 0 0 0
431 OTHER INTEREST EXPENSE 7 0 7
---------------------------------
SUBTOTAL EXPENSES = 350,433 31,263 381,696
COMPENSATION FOR USE OF EQUITY CAPITAL=
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES= 0
431 OTHER INTEREST EXPENSE= 0
-----------
TOTAL EXPENSES = 381,696
421 MISCELLANEOUS INCOME - CREDIT 8 (159) (151)
---------------------------------
TOTAL COST OF SERVICE = 350,441 31,104 381,545
=================================
</TABLE>
INSTRUCTION: Total cost of service will
equal for associate and nonassociate
companies the total amount billed under
their separate analysis of billing
schedules.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
- ----------------------------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
ACCOUNT TOTAL --------------------------------
NUMBER DESCRIPTION OF ITEMS AMOUNT OVERHEAD (1) (2) (3) (4)
- ----------------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES 168,130 2,406 694 33,808 1,448 5,621
921 OFFICE SUPPLIES AND EXPENSES 43,843 10,910 83 7,367 625 1,456
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 76,008 472 51 25,229 11 289
924 PROPERTY INSURANCE 49 49 0 0 0 0
925 INJURIES AND DAMAGES 910 0 0 0 0 0
926 EMPLOYEE PENSIONS AND BENEFITS 29,811 0 0 2,669 0 21
928 REGULATORY COMMISSION EXPENSE 74 0 0 0 0 1
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 7,274 945 0 721 0 73
931 RENTS 26,946 7,879 0 550 0 50
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 586 191 0 13 0 1
403 DEPRECIATION AND AMORTIZATION EXPENSE 8,400 8,400 0 0 0 0
408 TAXES OTHER THAN INCOME TAXES 13,140 0 0 0 0 0
409 INCOME TAXES 4,670 0 0 0 0 0
410 PROVISION FOR DEFERRED INCOME TAXES 7,252 0 0 0 0 0
411 PROVISION FOR DEFERRED INCOME TAXES - CREDIT (8,647) 0 0 0 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0 0 0 0
426.1 DONATIONS 542 0 0 5 0 0
426.5 OTHER DEDUCTIONS 2,701 11 0 (1) 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 7 0 0 0 0 0
------------------------------------------------
TOTAL EXPENSES = 381,696 31,263 828 70,361 2,084 7,512
================================================
</TABLE>
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.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
- ----------------------------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
ACCOUNT ------------------------------------------------
NUMBER DESCRIPTION OF ITEMS (5) (6) (7) (8) (9) (10)
- ----------------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES 8,811 3,352 6,275 2,322 14,494 14,582
921 OFFICE SUPPLIES AND EXPENSES 130 786 498 101 2,924 2,350
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 79 332 3,057 348 664 637
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 3,049 0 0 1 1
928 REGULATORY COMMISSION EXPENSE 0 0 0 0 0 4
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES (7) 373 27 47 3 0
931 RENTS 0 0 2 0 0 1,427
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 0 0 0 0 0 6
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 1 0 0 0 0 0
426.5 OTHER DEDUCTIONS 0 0 0 0 114 1
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 = 9,014 7,892 9,859 2,818 18,200 19,008
================================================
</TABLE>
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.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
- ----------------------------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
ACCOUNT ------------------------------------------------
NUMBER DESCRIPTION OF ITEMS (11) (12) (13) (14) (15) (16)
- ----------------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES 7,848 16,659 7,148 1,929 13,095 5,163
921 OFFICE SUPPLIES AND EXPENSES 4,904 2,845 42 237 5,192 719
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 10,724 6,880 573 1,122 15,543 316
924 PROPERTY INSURANCE 0 0 0 0 0 0
925 INJURIES AND DAMAGES 0 24 0 0 0 0
926 EMPLOYEE PENSIONS AND BENEFITS 0 0 0 120 0 0
928 REGULATORY COMMISSION EXPENSE 5 0 0 0 0 0
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 2,303 27 521 774 912 217
931 RENTS 91 33 0 149 14,488 259
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 3 1 0 0 0 28
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 90 442 0 0 0 0
426.5 OTHER DEDUCTIONS 109 579 366 954 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 = 26,077 27,490 8,650 5,285 49,230 6,702
================================================
</TABLE>
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.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
- ----------------------------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
ACCOUNT ------------------------------------------------
NUMBER DESCRIPTION OF ITEMS (17) (18) (19) (20) (21) (22)
- ----------------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES 3,950 1,730 579 3,302 5,016 7,895
921 OFFICE SUPPLIES AND EXPENSES 1,006 60 135 546 420 1,061
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 1,923 285 83 882 646 3,649
924 PROPERTY INSURANCE 0 0 0 0 0 0
925 INJURIES AND DAMAGES 0 0 0 844 47 (5)
926 EMPLOYEE PENSIONS AND BENEFITS 22,384 0 0 59 39 0
928 REGULATORY COMMISSION EXPENSE 0 0 0 64 0 0
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 255 2 18 4 61 (2)
931 RENTS 0 0 0 0 38 1,980
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 0 0 0 0 180 163
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 0 0 0 0 4 0
426.5 OTHER DEDUCTIONS 0 0 528 20 20 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 = 29,518 2,077 1,343 5,721 6,471 14,741
================================================
</TABLE>
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.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
- ------------------------------------------------------------
ACCOUNT --------
NUMBER DESCRIPTION OF ITEMS (23)
- ------------------------------------------------------------
<S> <C>
920 SALARIES AND WAGES 3
921 OFFICE SUPPLIES AND EXPENSES (554)
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0
923 OUTSIDE SERVICES EMPLOYED 2,213
924 PROPERTY INSURANCE 0
925 INJURIES AND DAMAGES 0
926 EMPLOYEE PENSIONS AND BENEFITS 1,468
928 REGULATORY COMMISSION EXPENSE 0
930.1 GENERAL ADVERTISING EXPENSES 0
930.2 MISCELLANEOUS GENERAL EXPENSES 0
931 RENTS 0
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 0
403 DEPRECIATION AND AMORTIZATION EXPENSE 0
408 TAXES OTHER THAN INCOME TAXES 13,140
409 INCOME TAXES 4,670
410 PROVISION FOR DEFERRED INCOME TAXES 7,252
411 PROVISION FOR DEFERRED INCOME TAXES - CREDIT (8,647)
411.5 INVESTMENT TAX CREDIT 0
426.1 DONATIONS 0
426.5 OTHER DEDUCTIONS 0
427 INTEREST ON LONG-TERM DEBT 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0
431 OTHER INTEREST EXPENSE 7
--------
TOTAL EXPENSES = 19,552
========
</TABLE>
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, 1996
SCHEDULE XVII
-------------
KEYS FOR SERVICE FUNCTIONS
--------------------------
KEYS SERVICE FUNCTION
---- ----------------
(1) Chairman, President and Chief Executive Officer
(2) President - Nuclear Group
(3) Executive V.P. and Chief Financial Officer
(4) V.P. Fossil and Hydro Engineering and Operations
(5) V.P. and Controller
(6) V.P. and Treasurer
(7) V.P. - Wholesale Marketing
(8) V.P. - Business Strategy
(9) President - Retail Business Group
(10) V.P. - Transmission and Distribution
(11) V.P. - Retail Marketing
(12) Director - Customer Service
(13) Senior V.P. and Chief Administrative Officer
(14) V.P. - Corporate Communication
(15) V.P. and Chief Information Officer
(16) V.P. - Purchasing and General Services
(17) V.P. - Human Resources
(18) Director - Internal Audit and Security
(19) Senior V.P. - Governmental Affairs
(20) V.P. - Secretary and General Counsel
(21) V.P. - Corporate and Environmental Affairs
(22) New England Power Pool
(23) Corporate Expenses - unallocated
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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)
<S> <C> <C> <C> <C> <C>
Chairman, President and Chief
Executive Officer $694 $41 $614 $39 3
President- Nuclear Group 33,808 230 26,073 7,505 438
Executive V.P. and Chief
Financial Officer 1,448 12 1,409 27 17
V.P. Fossil and Hydro Engineering
and Operations 5,621 37 5,575 9 68
V.P. and Controller 8,811 69 8,295 447 160
V.P. and Treasurer 3,352 51 3,111 190 70
V.P. - Wholesale Marketing 6,275 41 6,224 10 81
V.P. - Business Strategy 2,322 15 2,231 76 32
President - Retail Business Group 14,494 103 14,377 14 30
V.P. - Transmission and Distribution 14,582 96 12,246 2,240 230
V.P. - Retail Marketing 7,848 611 7,231 6 274
Director - Customer Service 16,659 108 16,539 12 354
Senior V.P. and Chief Administrative
Officer 7,148 46 6,722 380 3
V.P. - Corporate Communication (1) 1,935 13 1,785 137 39
V.P. and Chief Information Officer (2) 13,276 102 12,193 981 325
V.P. Purchasing and General
Services (3) 7,306 49 6,756 501 145
V.P. - Human Resources (4) 3,999 26 3,656 317 65
Director - Internal Audit and Security 1,730 21 1,544 165 34
Senior V.P.- Governmental Affairs 579 4 531 44 7
V.P., Secretary and
General Counsel (5) 3,329 221 2,915 193 49
V.P. - Corporate and Environmental
Affairs 5,016 33 4,747 236 78
New England Power Pool 7,895 51 35 7,809 125
Corporate Expenses - unallocated 3 0 3 0 0
-------------------------------------- ---------
$168,130 $1,980 $144,812 $21,338 2,627
====================================== =========
(1) Total amount includes $6,000 of payroll overhead.
(2) Total amount includes $181,000 of payroll overhead.
(3) Total amount includes $2,143,000 of payroll overhead.
(4) Total amount includes $49,000 of payroll overhead.
(5) Total amount includes $27,000 of payroll overhead.
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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 $100,000, 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)
<S> <C>
AUDITING SERVICES
- -----------------
ARTHUR ANDERSEN LLP NA $118
KPMG PEAT MARWICK NA 185
-----------
TOTAL AUDITING SERVICES 303
===========
ADVERTISING SERVICES
- --------------------
MINTZ & HOKE INC NA 459
BSA ADVERTISING INC NA 126
BARRY BLAU & PARTNERS INC NA 1,594
MISCELLANEOUS (9 PAYEES) NA 123
-----------
TOTAL ADVERTISING SERVICES 2,302
===========
COLLECTION SERVICES
- -------------------
FINANCIAL COLLECTION AGENCIES NA 125
CREDIT BUREAU COLLECTIONS NA 156
MISCELLANEOUS (10 PAYEES) NA 237
-----------
TOTAL COLLECTION SERVICES 518
===========
COMPUTER SERVICES
- -----------------
ADVANCED COMPUTING TECHNIQUES NA 231
AMERIDATA NA 188
DIGITAL EQUIPMENT CORP NA 408
GARTNER GROUP INC NA 222
IBM NA 770
LENCO COMPUTER CONSULTING NA 153
LIUSKI INTERNATIONAL INC NA 266
PRIDE TECHNOLOGIES INC NA 257
TRIMCO ENTERPRISE LTD NA 745
MISCELLANEOUS (29 PAYEES) NA 756
-----------
TOTAL COMPUTER SERVICES 3,996
===========
ENGINEERING SERVICES
- --------------------
ALTRAN CORP NA 107
APPLIED ENERGY GROUP INC NA 247
CATARACT INC NA 391
CLEMENS J HELTEMES JR NA 112
CONTINENTAL SERVICES GROUP INC NA 263
DUKE ENGINEERING & SERVICES NA 187
ELECTRIC POWER RESEARCH INST NA 459
ERIN ENGINEERING & RESEARCH NA 309
FRANK A SCALIA PHD NA 191
GENERAL ELECTRIC NA 109
GENERAL PHYSICS CORP NA 101
HOLTEC INTERNATIONAL NA 782
ISLAND SOFTWARE TECHNOLOGY NA 167
MDM ENGINEERING CORP NA 310
NES INC NA 344
NOVELL INC NA 114
NUCON NA 1,649
OLAV & CO NA 224
PREMIER DATA SERVICES INC NA 216
PRISM CONSULTING INC NA 591
PROTO POWER CORP NA 108
RAYTHEON QUALITY PROGRAMS DIV NA 404
SPEC/NRT SERVICES NA 685
STONE & WEBSTER ENGINEERING NA 161
WESTINGHOUSE ELECTRIC CORP NA 383
YANKEE ATOMIC ELECTRIC CO NA 1,529
MISCELLANEOUS (38 PAYEES) NA 888
-----------
TOTAL ENGINEERING SERVICES 11,031
===========
LEGAL SERVICES
- --------------
CARMODY & TORRANCE DR NA 336
CONSERVATION LAW FOUNDATION NA 200
DAY BERRY & HOWARD NA 1,586
HOWREY & SIMON NA 135
SHAW PITTMAN POTTS NA 290
STEPTOE & JOHNSON NA 167
MISCELLANEOUS (22 PAYEES) NA 382
-----------
TOTAL LEGAL SERVICES 3,096
===========
PRINTING SERVICES
- -----------------
ALLIED PRINTING SERVICES INC NA 381
THE WAVERLY PRINTING CO NA 149
MISCELLANEOUS (2 PAYEES) NA 51
-----------
TOTAL PRINTING SERVICES 581
===========
TEMPORARY EMPLOYMENT SERVICES
- ------------------------------
MANPOWER INC NA 1,802
MISCELLANEOUS (2 PAYEES) NA 92
-----------
TOTAL TEMPORARY EMPLOYMENT SERVICES 1,894
===========
OTHER SERVICES
- --------------
A E D NA 145
A R JOSEPH ASSOCIATES NA 213
ANDERSEN CONSULTING NA 366
APEX DATA SERVICES INC NA 182
BURSON MARSTELLER NA 794
C W COSTELLO & ASSOCIATES INC NA 2,212
CAMBRIDGE ENERGY RESEARCH NA 200
CEGELEC ESCA CORP NA 118
CISCO SYSTEMS INC NA 104
CITY OF HOLYOKE NA 233
CITY OF NORWALK NA 560
COMMONWEALTH RELOCATION SVCS NA 165
CONTRACT SOLUTIONS NA 718
CT HOUSING INVESTMENT FUND NA 2,377
DATA DIMENSIONS INC NA 142
DATA MAIL INC NA 170
DEVELOPMENT DIMENSIONS INT NA 232
DIBENEDETTO ASSOCIATES INC NA 131
DOW JONES & COMPANY INC NA 120
ECONOMIC RESOURCES GROUP INC NA 278
ENERGY RESEARCH GROUP INC NA 221
EQUIFAX NATIONAL DECISION SYSTEM NA 117
ERNST & YOUNG LLP NA 876
ESCA CORP NA 128
ETP INC NA 209
FAIRFIELD SONN ASSOC NA 106
FIRST DATA CORP NA 539
FLEXIBLE RESOURCES NA 133
FPI INTERNATIONAL NA 125
GEORGE W DAVIS NA 112
HAY MANAGEMENT CONSULTANTS NA 610
HEALTH RESOURCES NA 158
HEC INC A 214
JANUS MANAGEMENT ASSOCIATES NA 623
KENNY KINDLER HUNT & HOWE INC NA 222
LEE HECHT HARRISON INC NA 109
M & R EXPRESS INC NA 151
MICON INC NA 588
NATIONAL TRUST FOR NA 157
NORTEL COMMUNICATION SYSTEMS NA 698
NORTH ATLANTIC ENERGY SERVICE COMPANY A 1,404
NORTHEAST POWER COORDINATING COUNCIL NA 194
NUCLEAR SAFETY REVIEW CONCEPTS NA 184
OPTICOM INC NA 229
OPTIMUM TRAINING CENTERS LTD NA 330
OUTPUT TECHNOLOGIES INC NA 359
PARAMOUNT SYSTEMS INC NA 431
PASPERCO NA 133
PILOT SOFTWARE INC NA 1,122
PORTER MCGEE PUBLIC RELATIONS NA 104
PRO FITNESS NA 354
PUTNAM HAYES & BARTLETT INC NA 715
RLW ANALYTICAL INC NA 860
ROCKWELL INTERNATIONAL NA 134
S LEVY INC NA 142
SOFTAIDE SERVICES NA 163
SPEC CONSULTANTS INC NA 568
SUN TECHNICAL SERVICES INC NA 124
SYBASE INC NA 144
TECHNICAL AID CORP NA 838
THE FORUM CORP NA 256
THE INDUS GROUP INC NA 7,049
THE NICHOLAS GROUP PC NA 214
THE WINN CO NA 200
THIRO LTD NA 746
TOWERS PERRIN NA 133
WINDHAM AVIATION INC NA 355
XENERGY INC NA 122
MISCELLANEOUS (1,113 PAYEES) NA 19,124
-----------
TOTAL OTHER SERVICES 52,287
-----------
$76,008
===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
OUTSIDE SERVICES EMPLOYED
VENDOR NAME DESCRIPTION OF SERVICES RENDERED
- ----------------------------------------------------------------------------------------------------
<S> <C>
Auditing Services
- -----------------
Arthur Anderson, LLP Provide Auditing Services to NU Companies
KPMG Peat Marwick Professional Services in Conjunction with Evaluation of NEPOOL
Advertising Services
- --------------------
Mintz & Hoke, Inc. Furnish Advertising and Public Relations Services
BSA Advertising, Inc. Furnish Advertising Services as Requested by Employment Department
Barry Blau & Partners, Inc. Furnish Integrated Direct Marketing Services to Support NUSCO Sales
& Marketing Initiatives, Including PSNH Pilot Program
Collection Services
- -------------------
Financial Collection Agencies Furnish Collection Services for the Eastern Region
Credit Bureau Collection Furnish Collection Services for the Western Mass Region and the
Hartford Area
Computer Services
- -----------------
Advanced Computing Techniques Technical Support for NUTIMS program and I96 Desktop Team
Ameridata Furnish Contractor Support for Network Services
Digital Equipment Corp. Maintenance for Memorex/Telex Printers, I96 and Lotus Notes Project
Support
Gartner Group, Inc. Data Center Services
IBM Consulting Services for Development of an IT Strategy; Disaster
Recovery Services
Lenco Computer Consulting Design and Programming Support Services of NUCHRIS COLT Project
Liuski International, Inc. Furnish Computer Parts and Upgrades
Pride Technologies, Inc. Provide PC Equipment and Technical Support and Maintenance
Trimco Enterprise, Ltd. EDMS Investigation-Design and Install Hardware & Software
Engineering Services
- --------------------
Altran Corp. Address Implementation of E/C Program Objectives; Support
Preparation of a Systems Lay-Up Manual
Applied Energy Group, Inc. Impact Analysis of the Spectrum Single Family Electric Heat Program
Cataract, Inc. Professional Services to Provide Support to the Millstone
Operational Standards Department; Licensing Review Services
Clemins J. Heltemes, Jr. Provide Assistance to Nuclear Management for Resolution of Nuclear
Safety Issues
Continental Services Group Inc Support the MIMS Project for Nuclear Production Materials
Duke Engineering & Services Fire Protection Licensing Basis Development Program - Cost
Beneficial Licensing Action
Electric Power Research Inst. Establish Predictive Maintenance Program for Millstone Station
Erin Engineering & Research Provide Support for Maintenance Rule 10CFR50.65 Implementation
Frank A. Scalia, PhD Services in Conjunction with the Millstone Nuclear Data and
Canberra Computer Based Gamma Counting Systems
General Electric Provide Paper and Physical Maps for the EDI Transactions to be
Processed by the INDUS/MIMS Application; EDU Express System Pilot
General Physics Corp. Independent Assessment of the Restart Activities for the CT Nuclear
Units
Holtec International Engineering Related to the Repacking of the MP1 Spent Fuel Pool;
MP1 SFP Feasibility Study
Island Software Technology MIMS Project Support
MDM Engineering Corp. Provide Support for Millstone 1 and CY PM Optimization Project
NES, Inc. Develop a MEPL Bases Document and BOM, a Non-QA Bill of Materials
for Millstone Units 1,2 & 3 and CY
Novell, Inc. Novell Master License Agreement
NUCON Furnish Services for NUSCO Retiree Skill Bank
Olav & Co. MIMS Project Support - Data Conversion Effort
Premier Data Services, Inc. Services to Support the INDUS Passport Infrastructure Project
Prism Consulting, Inc. Assist Millstone in Improving Management Coordination &
Implementation of Standards & Policies
Proto Power Corp. Engineering Services to Support the Inter Unit Transfer Projects
Raytheon Quality Programs Div. On-Site Services to Support the SSA Effort
SPEC/NRT Services QA/QC Inspection Services for Millstone Nuclear Power Stations 1,2,
&3, and CY
Stone & Webster Engineering Support MP3 Design Engineering, NSSS Department, Assistance with
FERC Transmission Tariff
Westinghouse Electric Corp. Provide Engineering Services to Support the OPDT/OTDT Margin
Recovery Program
Yankee Atomic Electric Co. QA & Administration of Access Authorization and Fitness for Duty
Programs; Audit and Assessment Support Services
Legal Services
- --------------
Carmody & Torrance Provide Legal Services on an as Requested Basis
Conservation Law Foundation Collaborative Effort - Legal Services
Day, Berry & Howard Provide Legal Services on an as Requested Basis
Howrey & Simon Furnish Consulting Services for NEPOOL Center
Shaw Pittman Potts Provide Legal Services on an as Requested Basis
Steptoe & Johnson Provide Legal Services on an as Requested Basis
Printing Services
- -----------------
Allied Printing Services, Inc. Printing Consumer News and Special Bill Inserts
The Waverly Printing Co. Printing Services as Directed by Corporate Communications
Department; Newsletter
Temporary Employment Services
- -----------------------------
Manpower Temporary Labor Services: AITTS Training
Other Services
- --------------
AED Project Management Support for the Start-up of the Condition-Based
Maintenance Department
AR Joseph Associates Consulting and Training Services
Anderson Consulting Consulting Services for the MIMS/DMS Interface
Apex Data Services, Inc. Conversion of Monthly Update Documents
Burson Marsteller Consulting Communication Services
C.W. Costello & Assoc., Inc. On-Site Computer Programming Services
Cambridge Energy Research Services Related to Energy Conversion Business Model and Creation
of Operational Framework; Services Related to Energy Markets and
Industry Restructure
Cegelec ESCA Corp. Furnish Software for Oasis Program
Cisco Systems, Inc. Equipment Maintenance (CISCO Router)
City of Holyoke Provide Police Officers for Traffic Duty
City of Norwalk Incentive - Norwalk Schools Distressed Cities
Commonwealth Relocation Svcs. Provide a Home Sales Assistance Program for Qualified Employees
Contract Solutions Licensing Services for Millstone Unit 3
CT Housing Investment Fund Support the Admin. and Oversight of the Wrap Unit to Provide
Low-Income Weatherization Services
Data Dimensions, Inc. Consulting Services in Support of the Millennium Project
Data Mail, Inc. Mailing Services for Community Relations Department
Development Dimensions Unit Training and Assessment Activities - Nuclear and Information
Technology Reengineering Selection Process
DiBenedetto Associates, Inc. QA Services for the 50.54(F) Oversight Effort (NUSCO Nuclear
Quality Performance Department)
Dow Jones & Company, Inc. Dow Jones News Retrieval Information Services
Economic Resources Group, Inc. Formulate Strategy/Policy for NU's Regulatory Proceedings in CT, NH
and MA
Energy Research Group, Inc. Consulting Services to Support Market Management Department
Equifax National Decision Analytical Services to Verify Customer Database, Provide
System Firmographics and Demographics Data
Ernst & Young LLP Consulting Services for Implementing the Transition of the IT
Organization; Reengineering and Implementation Services
ESCA Corp. Software Maintenance; Software Protocol Work
ETP, Inc. EAP Services for Employees and Dependents; Supervisory Training
Services
Fairfield Sonn Assoc. Assist Customer Center Implementation Team in the Performance
Management Area; Organizational Needs for Market Pricing and Policy
First Data Corp. Automated Electronic Payment Agent Management Services to CL&P and
WMECO
Flexible Resources Recruitment and Selection of Marketing Personnel; Develop
Curriculum for Marketing Training
FPI International Culture Index Determination for Each NU Nuclear Facility
George W. Davis Support Board of Trustees by Serving as a Member of the Nuclear
Committee Advisory Team
Hay Management Consultants Consulting Services in Connection with Special Board Request
Executive Compensation
Health Resources Nursing and EMT Services for Berlin Health Unit
HEC, Inc. Create a Pilot Sales and Marketing Program in the Government and
Municipal Sector of Market Management; Conduct Energy Analysis
Surveys
Management; Conduct Energy Analysis Surveys
Janus Management Consulting Services in Connection with Watchlist Matters
Kenny Kindler Hunt & Howe Inc. Executive Search Services
Lee Hecht Harrison, Inc. Career Transition Services
M & R Express, Inc. Daily Courier Service
Micon, Inc. Services to Support NUSCO's New Customer Information and
Billing/Order System
National Trust for Consulting Services for the 1996-97 Sponsorship of Main St. Program
Historic Preservation in CT
Nortel Communication Systems Maintenance of NTI PBX's; Customer Service Support
North Atlantic Energy Serv. Co. Nuclear support services
Northeast Power Coordinating NPCC Dues
Council
Nuclear Safety Review Concepts Services Related to the Millstone Station Nuclear Safety Assessment
Board
Opticom, Inc. Install Telcom Equipment
Optimum Training Centers, Ltd. Provide WIN95/Notes Trainers and Desktop Specialists; PC Training
Output Technologies, Inc. Microfiche Services
Paramount Systems, Inc. MIMS, NUTIMS and Millennium Project Support
Pasperco Services to Support MIMS Project
Pilot Software, Inc. Computer Consulting Services to Support MIDSS and TACS Projects
Porter McGee Public Relations Miscellaneous Projects in Connection with the Corporate
Communications Division
Pro Fitness Management Services of the Wellaware Health Initiatives Program;
Fitness Facility Services
Putnam Hayes & Bartlett, Inc. Market Power Analysis
RLW Analytical, Inc. Services to Determine Net Energy and Demand Impacts of 1994 Energy
Action Program; Impact Evaluation of NUSCO's Multifamily Program
Rockwell International ACD System for Customer Service Inquiry Center and Berlin Credit
and Collection Center (Telephone System)
S. Levy, Inc. Technical Services Relative to FSAR and Other Work at Millstone
Softaide Services Design and Programming Services to Support the NUCHRIS Project
Spec Consultants, Inc. QA/QC Inspection Services for Millstone Units 1,2 &3, and CY
Sun Technical Services, Inc. Contracted Instruction Services (Corrective Maintenance)
Sybase, Inc. Data Base Consulting Services; Software Support
Technical Aid Corp. Furnish Professional and Clerical Personnel to Support Marketing
and Conservation Programs
The Forum Group Sales Training to the Wholesale Marketing Department, Managers &
Account Executives
The Indus Group Move Baseline Changes From/To the Indus Development System; MIMS
Data Conversion
The Nicholas Group, P.C. Services to Determine Impacts of Energy Action Program, Energy
Conscious Construction Program
The Winn Co. Consulting, Media Training and Video Production
Thiro Ltd. Storm Restoration Assistance
Towers Perrin Benefits Consulting Services for Benefits Department
Windham Aviation, Inc. Air Charter Service
Xenergy, Inc. Comparison Group Reliability Study - Background and Workplan
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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)
<S> <C>
Pension Plan $3,757
Supplemental Retirement and Savings Plan 6,401
Group Life, Long-term Disability, Hospital
and Medical Insurance Expenses 10,531
Post retirement medical benefit - FAS 106 7,522
Early retirement program 1,468
Other Employee Benefits Expenses 132
---------
TOTAL $29,811
=========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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)
<S> <C>
-
---------
TOTAL $ -
=========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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)
<S> <C>
Closing fees - revolving credit facility $ 2,236
Economic development 1,431
Information technology 1,016
Shareholder reports and meetings 674
Security guard service 372
Employee development expenses 367
Communication expense 153
Recruitment expenses 128
Credit monitoring fees 106
New York Stock Exchange - annual listing fee 67
Trustee registration & transfer agent fee & expense 51
Other miscellaneous expenses (62 items) 673
------------
TOTAL $ 7,274
============
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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)
<S> <C>
Buildings/office space $9,023
Computer/Office equipment 17,554
Vehicles 369
---------
TOTAL $26,946
=========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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)
<S> <C>
(1) Other Than U.S. Government Taxes:
Connecticut Unemployment $1,063
Massachusetts Unemployment 69
Local property 578
Other 12
---------
Sub-Total 1,722
---------
(2) U.S. Government Taxes:
Federal Insurance Contribution Act 8,807
Medicare Tax 2,401
Federal Unemployment 203
Federal Excise 7
---------
Sub-Total 11,418
---------
TOTAL $13,140
=========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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)
<S> <S> <C>
BARKER SPECIALTY CHARITABLE CONTRIBUTION $10
BAY PATH COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 3
C W RESOURCES INC CHARITABLE CONTRIBUTION 5
CAMBRIDGE REPORTS RES INTL CHARITABLE CONTRIBUTION 63
CANTEEN INTERSTATE UNITED CORP CHARITABLE CONTRIBUTION 3
CAPITAL COMMUNITY TECH COLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 5
CENTRAL CT STATE UNIVERSITY CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 4
CITIZENS FOR CONNECTICUTS CHARITABLE CONTRIBUTION 3
CONNECTICUT PRIDE CHARITABLE CONTRIBUTION 5
HARTFORD DOWNTOWN COUNCIL CHARITABLE CONTRIBUTION 50
HARTFORD GRADUATE CENTER CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 8
JEWEL PRODUCTIONS LTD CHARITABLE CONTRIBUTION 25
MASS INSTITUTE OF TECHNOLOGY CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 24
MARTIN FOTO & ART CHARITABLE CONTRIBUTION 4
MOUNT HOLYOKE COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 3
NAUGATUCK VALLEY COMMUNITY CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 7
NORWALK COMMUNITY TECHNICAL CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 5
RENSSELAER POLYTECHNIC INST CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 15
SPRINGFIELD COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 3
ST JOSEPH COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 15
THE E R HITCHCOCK COMPANY INC CHARITABLE CONTRIBUTION 10
TRINITY COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 5
UNIVERSITY OF CONNECTICUT FOUNDATION CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 8
UNIVERSITY OF CONNECTICUT CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 88
UNIVERSITY OF HARTFORD CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 23
UNIVERSITY OF MASSACHUSETTS CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 16
WESLEYAN UNIVERSITY CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 7
YMCA CHARITABLE CONTRIBUTION 6
MISCELLANEOUS (213 PAYEES) CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 119
-----------
TOTAL $542
===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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)
<S> <S> <C>
Executive incentive
compensation plan Various NUSCO Officers $737
Government relation
expenditures Carmody & Torrance 42
Updike Kelly & Spellacy, PC 96
Miscellaneous (74 items) 80
Communication services Allied Printing Services, Inc. 107
Burson Marsteller 213
Concord Monitor 25
Fosters Daily Democrat 32
Lynn Wood 471
Star Media of New Hampshire 30
Telegraph 39
The Union Leader Corp. 48
WFSB Productions 28
WMUR TV Inc. 145
Miscellaneous (45 items) 218
Contributions University of New Hampshire 91
Miscellaneous (130 items) 104
Other Miscellaneous (12 items) 195
--------
TOTAL $2,701
========
</TABLE>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
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 19D.
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
ORGANIZATION CHART (AS OF DECEMBER 31, 1996)
Chairman, President and Chief Executive Officer
- President - Nuclear Group
- President - Retail Business Group
- Vice President - Transmission and Distribution
- Vice President - Retail Marketing
- Director - Customer Service
- Executive Vice President and Chief Financial Officer
- Vice President - Fossil and Hydro Engineering and Operations
- Vice President and Controller
- Vice President and Treasurer
- Vice President - Wholesale Marketing
- Vice President - Business Strategy
- Senior Vice President and Chief Administrative Officer
- Vice President - Corporate Communiations
- Vice President & Chief Information Officer
- Vice President - Purchasing and General Services
- Vice President - Human Resources
- Director - Internal Audit and Security
- Senior Vice President - Governmental Affairs
- Vice President - Secretary and General Counsel
- Vice President - Corporate and Environmental Affairs
NORTHEAST UTILITIES SERVICE COMPANY
-----------------------------------
METHODS OF ALLOCATION
---------------------
For the year ended December 31, 1996
------------------------------------
1) Cogeneration Units
2) Conservation and Load Management Programs and Expenditures
3) Peak Load
4) Fuel Purchased
5) Gross Plant Assets
6) Invoices Processed
7) Materials and Supplies
8) Megawatt Hour Sales
9) Direct Charged Costs
10) Payroll
11) Operating Revenues
12) Union Employees
13) Vehicle Lease Costs
14) Customers
15) Vehicles
16) Nuclear Units
17) Borrowing Limits
18) Employees
20) KWH Load Under Contract
21) Number of Customer Inquiries
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 1996:
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 1996:
(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 1996 there was no
interest billed to Associated Companies.
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1996
Report Relating to Electric Power Brokering and Marketing Activities
Filed pursuant to Rule 24 under the Public Utility Holding
Company Act of 1935 (HCAR. No. 26359; File No. 70-8641)
(Thousands
of Dollars)
ACTIVITY
- --------
BROKERING:
Revenues $ 0
========
Expenses:
Payroll 7
Employee expenses 1
--------
8
========
MARKETING:
Revenues: 313
========
Expenses:
Purchased power 232
Payroll 1
--------
$ 233
========
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)
By: /s/ John J. Roman
(Signature of Signing Officer)
John J. Roman - Vice President and Controller
(Printed Name and Title of Signing Officer)
Date: April 25, 1997
<TABLE> <S> <C>
<ARTICLE>OPUR2
<CIK>0000205716
<NAME>NORTHEAST UTILITIES SERVICE COMPANY
<MULTIPLIER>1,000
<S> <C> <C>
<PERIOD-TYPE> YEAR YEAR
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1995
<PERIOD-END> DEC-31-1996 DEC-31-1995
<BOOK-VALUE> PER-BOOK PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 45,231 39,310
<TOTAL-INVESTMENTS> 4,815 4,630
<TOTAL-CURRENT-ASSETS> 392,411 140,284
<TOTAL-DEFERRED-DEBITS> 31,884 21,525
<OTHER-ASSETS-AND-DEBITS> 0 0
<TOTAL-ASSETS-AND-DEBITS> 474,341 205,749
<TOTAL-PROPRIETARY-CAPITAL> 1 1
<TOTAL-LONG-TERM-DEBT> 0 0
<NOTES-PAYABLE> 0 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 216,275 65,275
<OTHER-CURR-AND-ACCRUED-LIAB> 219,864 113,816
<TOTAL-DEFERRED-CREDITS> 38,201 26,657
<DEFERRED-INCOME-TAX> 0 0
<TOT-LIABIL-AND-PROPRIET-CAP> 474,341 205,749
<SERVICES-ASSOCIATE-COMPANIES> 332,979 285,696
<SERVICES-NON-ASSOCIATE-COMP> 48,566 43,422
<MISC-INCOME-OR-LOSS> 151 132
<TOTAL-INCOME> 381,696 329,250
<SALARIES-AND-WAGES> 168,130 156,140
<EMPLOYEE-PENSION-AND-BENEFIT> 29,811 29,336
<OTHER-EXPENSES> 183,755 143,774
<TOTAL-EXPENSES> 381,696 329,250
<NET-INCOME> 0 0
<TOTAL-EXPENSES-DIRECT-COST> 350,433 304,174
<TOTAL-EXPENSES-INDIRECT-COST> 31,263 25,076
<TOT-EXP-DIRECT-AND-INDIRECT> 381,696 329,250
<PERSONNEL-END-OF-YEAR> 2,627 2,569
</TABLE>
