Form U -13 - 60
Mutual and Subsidiary Service Companies
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1997 and Ending December 31, 1997
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
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
- ----------------------------------------------------------------------------------------
1997 1996
(Thousands of Dollars)
<S> <C> <C>
SERVICE COMPANY PROPERTY
------------------------
101 Service company property (Schedule II) $84,317 $96,229
107 Construction work in progress (Schedule II) 7,788 3,843
----------- -----------
Total Property 92,105 100,072
----------- -----------
108 Less accumulated provision for depreciation and
amortization of service company property (Schedule III) 51,650 54,841
----------- -----------
Net Service Company Property 40,455 45,231
----------- -----------
INVESTMENTS
-----------
123 Investments in associate companies (Schedule IV) - -
124 Other investments (Schedule IV) 4,155 4,815
----------- -----------
Total Investments 4,155 4,815
----------- -----------
CURRENT AND ACCRUED ASSETS
--------------------------
131 Cash 9,030 32,688
134 Special deposits - -
135 Working funds 470 470
136 Temporary cash investments (Schedule IV) 34,700 154,237
141 Notes receivable - -
143 Accounts receivable 42,017 35,251
144 Accumulated provision of uncollectible accounts - -
146 Accounts receivable from associate companies (Schedule V) 193,151 167,866
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies 34 71
163 Stores expense undistributed (Schedule VII) - -
165 Prepayments 2,574 1,828
174 Miscellaneous current and accrued assets (Schedule VIII) - -
----------- -----------
Total Current and Accrued Assets 281,976 392,411
----------- -----------
DEFERRED DEBITS
---------------
181 Unamortized debt expense - -
184 Clearing accounts 704 842
186 Miscellaneous deferred debits (Schedule IX) 36,308 14,733
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes 17,644 16,309
----------- -----------
Total Deferred Debits 54,656 31,884
----------- -----------
TOTAL ASSETS AND OTHER DEBITS $381,242 $474,341
=========== ===========
</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
- ----------------------------------------------------------------------------------------
1997 1996
(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 82,544 123,957
233 Notes payable to associate companies (Schedule XIII) 141,950 216,275
234 Accounts payable to associate companies (Schedule XIII) 33,894 33,179
236 Taxes accrued 14,487 15,583
237 Interest accrued 13 2
238 Dividends declared - -
241 Tax collections payable (625) (376)
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 42,760 47,519
----------- -----------
Total Current and Accrued Liabilities 315,023 436,139
----------- -----------
DEFERRED CREDITS
----------------
253 Other deferred credits 66,218 38,201
255 Accumulated deferred investment tax credits - -
----------- -----------
Total Deferred Credits 66,218 38,201
----------- -----------
282 ACCUMULATED DEFERRED INCOME TAXES - -
--------------------------------- ----------- -----------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $381,242 $474,341
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1997
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 $1,897 $138 $2,035
304 LAND AND LAND RIGHTS
305 STRUCTURES AND IMPROVEMENTS
306 LEASEHOLD IMPROVEMENTS 2,816 (3) 1,794 1,019
307 EQUIPMENT (2) 73,198 3,116 13,355 62,959
308 OFFICE FURNITURE AND EQUIPMENT 16,661 13 (40) 5 16,719
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT 2 3 5
310 AIRCRAFT AND AIRPORT EQUIPMENT
311 OTHER SERVICE COMPANY
PROPERTY (3) 1,655 (24) 275 $224 1,580
---------- --------- ----------- ---------- ----------
SUB-TOTAL 96,229 3,243 15,384 229 84,317
---------- --------- ----------- ---------- ----------
107 CONSTRUCTION WORK IN
PROGRESS (4) 3,843 4,129 (184) 7,788
---------- --------- ----------- ---------- ----------
TOTAL $100,072 $7,372 $15,384 $45 $92,105
========== ========= =========== ========== ==========
- -------------------------------------------------------------------------------------------
(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 $2,834 $36,683
307NB Construction Equipment 51 260
307NC Other Communication Equipment 250 21,990
307NL Research and Laboratory Equipment (27) 3,838
307NM Microwave Equipment 8 176
307NP Printing and Stationery Equipment 0 12
----------- ----------
TOTAL $3,116 $62,959
=========== ==========
- -------------------------------------------------------------------------------------------
(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, 1997
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 $624 $352 $976
304 LAND AND LAND RIGHTS
305 STRUCTURES AND IMPROVEMENTS
306 LEASEHOLD IMPROVEMENTS 2,694 5 1,794 905
307 EQUIPMENT 36,293 11,399 13,374 34,318
308 OFFICE FURNITURE AND FIXTURES 14,363 356 (40) 14,759
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT 2 2
310 AIRCRAFT AND AIRPORT EQUIPMENT
311 OTHER SERVICE COMPANY
PROPERTY 865 100 275 690
---------- --------- ----------- ---------- ----------
TOTAL $54,841 $12,212 $15,403 $0 $51,650
========== ========= =========== ========== ==========
- -------------------------------------------------------------------------------------------
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
NONE
</TABLE
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1997
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:
RABBI Trust Investment (Supplemental Executive
Retirement Savings Plan) 3,866 4,155
Cash Surrender Value of Company Owned Life Insurance 949 0
---------- ----------
Total - ACCOUNT 124 4,815 4,155
---------- ----------
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
Fidelity Money Market Fund, due January 2, 1998 0 3,913
Merrill Lynch Money Market Fund, due January 2, 1998 0 3,556
Provident Money Market Fund, due January 2, 1998 0 18,181
Goldman Sachs Money Market Fund, due January 2, 1998 0 9,050
CDC Commercial Paper, due January 2, 1997 19,993 0
Duke Power Commercial Paper, due January 2, 1997 3,998 0
Halifax Commercial Paper, due January 2, 1997 24,913 0
J.P Morgan Commercial Paper, due January 2, 1997 5,482 0
Merrill Lynch Commercial Paper, due January 2, 1997 24,991 0
General Electric Commercial Paper, due January 3, 1997 16,924 0
John Hancock Commercial Paper, due January 3, 1997 10,627 0
Gannett Commercial Paper, due January 6, 1997 24,912 0
PHH Commercial Paper, due January 6, 1997 7,464 0
IBM Commercial Paper, due January 16, 1997 14,933 0
---------- ----------
Total - ACCOUNT 136 154,237 34,700
---------- ----------
GRAND TOTAL $159,052 $38,855
========== ==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1997
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 $598 $217
The Connecticut Light and Power Company 47,972 46,606
The Rocky River Realty Company 0 81
Holyoke Water Power Company 1,084 817
Holyoke Power and Electric Company (5) (10)
Western Massachusetts Electric Company 11,964 10,931
Public Service Company of New Hampshire 13,681 5,862
Properties, Inc. 0 1
North Atlantic Energy Corporation 35 36
North Atlantic Service Energy Corporation 1,588 2,022
The Quinnehtuk Company 4 3
Northeast Nuclear Energy Company 17,534 20,639
Charter Oak Energy Incorporated 65 (182)
COE Tejona Corporation 0 13
COE Development Corporation 169 54
Mode 1 Communications, Inc. 584 151
Select Energy, Inc. 282 (1,367)
HEC Inc. 36 27
---------- -----------
95,591 85,901
---------- -----------
NOTES RECEIVABLE (MONEY POOL) FROM ASSOCIATE COMPANIES
- -------------------------------------------------------
The Connecticut Light and Power Company 0 61,300
North Atlantic Energy Corporation 2,500 9,950
The Rocky River Realty Company 16,900 15,700
The Quinnehtuk Company 5,000 5,350
Western Massachusetts Electric Company 47,400 14,350
HEC Inc. 475 600
---------- -----------
72,275 107,250
---------- -----------
TOTAL $167,866 $193,151
========== ===========
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, 1997
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 $2,517
The Connecticut Light and Power Company 210,709
Holyoke Water Power Company 2,762
Holyoke Power and Electric Company (89)
Western Massachusetts Electric Company 39,351
Public Service Company of New Hampshire 62,870
Properties, Inc. 4
North Atlantic Energy Corporation 580
North Atlantic Service Energy Corporation 7,744
Northeast Nuclear Energy Company 52,699
Charter Oak Energy Incorporated 180
COE Development Corporation 393
COE (UK) Corporation 4
COE Argentina II Corporation 12
COE Tejona Corporation 55
COE Fenix Corporation 6
Select Energy, Inc. 5,058
Mode 1 Communication, Inc. 657
The Quinnehtuk Company 10
The Rocky River Realty Company 196
HEC Inc. 20
-----------
TOTAL $385,738
===========
Convenience payments result primarily from the following items:
Net Power Exchange $116,179
Employee Pensions and Benefits 86,922
U.S. Department of Energy Fees 3,598
Electric Power Research Institute Fees 1,712
Legal Services 15,797
Nuclear Insurance 3,943
Non-Nuclear Insurance 15,739
Engineering Services 6,714
Communication Expenses 2,425
Payroll Deductions to Credit Unions 29,788
Temporary Personnel Services 8,207
Tree Trimming 4,790
Conservation Consulting 9,027
Storm Emergency, net of insurance recovery (9,215)
Overhead Line Construction 13,125
Computers Services 1,751
Fleet leasing 1,220
Fuel Purchases 19,025
Rental of chiller equipment for gas turbine 1,970
Postage-customer billing 5,504
Repurchase of Rocky River Realty Company's Series B notes 23,879
Miscellaneous (1242 items) 23,638
-----------
TOTAL $385,738
===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1997
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 $498 $54 $552
The above fuel stock expenses are billed
back to each of the associated companies
listed below:
The Connecticut Light and Power Company (253) (32) (285)
Public Service Company of New Hampshire (167) (18) (185)
Western Massachusetts Electric Company (14) (2) (16)
Holyoke Water Power Company (64) (2) (66)
------- ------- -------
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, 1997
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 $1,564 $235 $1,799
The above stores expenses are billed back
to each of the companies listed below:
The Connecticut Light and Power Company (815) (178) (993)
Public Service Company of New Hampshire (205) (15) (220)
Western Massachusetts Electric Company (107) (20) (127)
Holyoke Water Power Company (37) (10) (47)
Northeast Nuclear Energy Company (357) (3) (360)
North Atlantic Energy Service Corporation (10) (5) (15)
Select Energy, Inc. (2) (1) (3)
Connecticut Yankee Atomic Power Company -
(nonassociate company) (31) (3) (34)
------- ------- -------
TOTAL $0 $0 $0
======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1997
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, 1997
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
Prepaid rent - Rocky River Realty Company $0 $23,985
Unfunded supplemental executive retirement plan 10,607 10,607
Agents account clearing 1,948 713
Employees performance payments 181 106
Receivable from VEBA trust for retiree's medical/life claims 954 109
Deposit for transmission services 954 720
Miscellaneous (10 items at beginning and 15 items at end of year) 89 68
----------- ----------
TOTAL $14,733 $36,308
=========== ==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1997
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
EPRI Research Dues $1,488
Wind Research 62
Solar Power Research 41
Pathophysiology Of Electrical Injuries 40
Heat Pump Water Heater Research 31
Miscellaneous, Various Co-funding projects, etc.(9 items) 172
The above expenses are billed back to each of the
associated companies listed below:
The Connecticut Light and Power Company (1,082)
Public Service Company of New Hampshire (189)
Western Massachusetts Electric Company (231)
Holyoke Water Power Company (7)
Northeast Atlantic Energy Service Company (225)
Connecticut Yankee Atomic Power Company -
(nonassociate company) (100)
-------
TOTAL $0
=======
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1997
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, 1997
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, 1997
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 $5,475 $34,200
The Connecticut Light and Power Company 109,500 0
Public Service Company of New Hampshire 18,250 0
Northeast Nuclear Energy Company 75,000 98,600
Holyoke Water Power Company 8,500 9,150
----------- ----------
TOTAL $216,725 $141,950
=========== ==========
- ---------------------------------------------------------------------------------------
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
Northeast Utilities $250 $381
The Connecticut Light and Power Company 245 841
The Rocky River Realty Company 1,610 392
Public Service Company of New Hampshire 26,341 29,031
Western Massachusetts Electric Company 2,335 2,307
Northeast Nuclear Energy Company 1,767 918
North Atlantic Energy Service Company 364 10
HEC Inc. 0 14
Holyoke Water Power Company 267 0
----------- ----------
TOTAL $33,179 $33,894
=========== ==========
- ---------------------------------------------------------------------------------------
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES
Pension Cost $28,625 $24,746
Performance Reward Program 11,834 14,608
Payroll Accrual 6,089 1,361
Payroll Deductions 956 772
Early Retirement Program 0 1,258
Interest on Connecticut Sales Tax Settlement 15 15
----------- ----------
TOTAL $47,519 $42,760
=========== ==========
</TABLE>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1997
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 companies of
the Northeast Utilities system (NU system).
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 NU system and are wholly owned
by NU.
Other wholly owned subsidiaries of NU provide support services for the NU
system companies and, in some cases, for other New England utilities.
Northeast Nuclear Energy Company acts as agent for the NU system companies
and other New England utilities in operating the Millstone nuclear
generating facilities. North Atlantic Energy Service Corporation has
operational responsibility for the Seabrook nuclear plant.
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). NU 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 rates 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 11.5 percent in 1997 and 8.5 percent in
1996. 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
GENERAL
NUSCO has entered into lease agreements for the use of data processing
equipment, office equipment, vehicles and office space. The provisions of
these lease agreements generally provide for renewal options. At December
31, 1997, NUSCO's capital lease obligations were immaterial.
Rental payments charged to operating expenses for 1997 and 1996 amounted to
approximately $348,000 and $613,000, respectively, for capital leases and
$18,542,000 and $18,862,000, respectively, for operating leases.
Interest included in capital lease rental payments for 1997 and 1996 was
approximately $14,000 and $53,000, respectively.
Future minimum rental payments, excluding executory costs such as property
taxes, state use taxes, insurance and maintenance under long-term
noncancelable leases, as of December 31, 1997 are approximately:
Period Operating Leases
(Thousands of Dollars)
1998......................... $ 5,200
1999......................... 4,100
2000......................... 3,500
2001......................... 3,400
2002......................... 3,300
After 2002................... 21,900
Future minimum lease payments $41,400
ROCKY RIVER REALTY COMPANY
Rocky River Realty Company (RRR) provides real estate support services,
including the leasing of properties and facilities used by NU system
companies. During 1997, RRR repurchased certain notes that were secured
by real estate leases between RRR as lessor and NUSCO as lessee. The
repayment of these rates triggered the acceleration of rent paid by NUSCO
to RRR. These amounts were subsequently billed by NUSCO to the applicable
NU operating subsidiaries in their proportionate amounts. At December 31,
1997, NUSCO has recorded long-term prepaid rent of approximately $24
million. The asset is being amortized on a straight line basis and will be
fully amortized in 2017.
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. Investing and borrowing subsidiaries receive or
pay interest based on the average daily Federal Funds rate. However,
borrowings based on loans from NU parent bear interest at NU parent's cost
and must be repaid based upon the terms of NU parent's original borrowing.
4. PENSION BENEFITS
The NU system subsidiaries participate in a uniform noncontributory defined
benefit retirement plan covering all regular NU system employees.
Benefits are based on years of service and employees' highest eligible
compensation during 60 consecutive months of employment. NUSCO's direct
portion of the NU system's pension (credit)/cost approximated $(3.9)
million in 1997 and $2.4 million in 1996. Pension (credit)/cost for 1997
and 1996 included approximately $(332) thousand and $1.5 million,
respectively, related to workforce reduction programs.
Currently, NUSCO funds annually an amount at least equal to that which will
satisfy the requirements of the Employee Retirement Income Security Act
and the Internal Revenue Code. Pension costs are determined using market-
related values of pension assets. Pension assets are invested primarily in
domestic and international equity securities and bonds.
The components of net pension (credit)/cost for NUSCO are:
For the Years Ended December 31, 1997 1996
(Thousands of Dollars)
Service cost..................................... $10,397 $11,627
Interest cost.................................... 26,358 24,602
Return on plan assets............................ (89,310) (60,474)
Net amortization................................. 48,661 26,629
Net periodic pension (credit)/cost............... $(3,894) $ 2,384
For calculating pension cost, the following assumptions were used:
For the Years Ended December 31, 1997 1996
Discount rate.................................... 7.75% 7.50%
Expected long-term rate of return................ 9.25 8.75
Compensation/progression rate.................... 4.75 4.75
The following table represents the plan's funded status reconciled to the
Balance Sheets:
At December 31, 1997 1996
(Thousands of Dollars)
Accumulated benefit obligation at
December 31, 1997 and 1996, includes
$(259,171,000) and $(234,968,000)
respectively, of vested benefits .............. $(288,628) $(260,444)
Projected benefit obligation (PBO)............... $(375,065) $(342,345)
Market value of plan assets...................... 509,898 432,211
Market value in excess of PBO.................... 134,833 89,866
Unrecognized transition amount................... (5,317) (5,923)
Unrecognized prior service costs................. 7,562 8,092
Unrecognized net gain............................ (161,824) (120,660)
Accrued pension liability........................ $ (24,746) $(28,625)
The following actuarial assumptions were used in calculating the plan's
year-end funded status:
At December 31, 1997 1996
Discount rate.................................... 7.25% 7.75%
Compensation/progression rate.................... 4.25 4.75
5. POSTRETIREMENT BENEFITS OTHER THAN PENSIONS
The NU system subsidiaries provide 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 retiring from the NU system who have met specified service
requirements. 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.
NUSCO's direct portion of SFAS 106 costs approximated $5.5 million in 1997
and $7.5 million in 1996.
During 1997 and 1996, NUSCO funded SFAS 106 postretirement costs through
external trusts. NUSCO is funding, on annual basis, 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, 1997 1996
(Thousands of Dollars)
Service cost..................................... $1,657 $2,083
Interest cost.................................... 4,118 4,559
Return on plan assets............................ (4,888) (2,401)
Amortization of transition obligation............ 2,533 2,533
Other amortization, net.......................... 2,053 732
Net health care and life insurance costs......... $5,473 $7,506
For calculating SFAS 106 benefit costs, the following assumptions were
used:
For the Years Ended December 31, 1997 1996
Discount rate.................................... 7.75% 7.50%
Long-term rate of return -
Health assets, net of tax...................... 6.00 5.25
Life assets.................................... 9.25 8.75
The following table represents the plan's funded status reconciled to the
Balance Sheets:
At December 31, 1997 1996
(Thousands of Dollars)
Accumulated Postretirement Benefit
Obligation (APBO):
Retirees....................................... $(37,810) $(40,460)
Fully eligible active employees................ (169) (80)
Active employees not eligible to retire........ (19,750) (21,117)
Total APBO....................................... (57,729) (61,657)
Less: Market value of plan assets............... 29,441 23,687
APBO in excess of plan assets.................... (28,288) (37,970)
Unrecognized transition amount................... 37,995 40,528
Unrecognized net gain............................ (9,707) (2,558)
Accrued postretirement benefit costs............. $ 0 $ 0
The following actuarial assumptions were used in calculating the plan's
year-end funded status:
At December 31, 1997 1996
Discount rate.................................... 7.25% 7.75%
Health care cost trend rate (a).................. 5.76 7.23
(a) The annual growth in per capita cost of covered health care benefits
was assumed to decrease to 4.4 percent by 2001.
The effect of increasing the assumed health care cost trend rate by one
percentage point in each year would increase the APBO as of December 31,
1997 by approximately $2.8 million and the aggregate of the service and
interest cost components of net periodic postretirement benefit cost for
the year then ended by $253 thousand. The trust holding the health plan
assets is subject to federal income taxes at a 39.6 percent tax rate.
6. COMMITMENTS AND CONTINGENCIES
CONSTRUCTION PROGRAM
The construction program is subject to periodic review and revision by
management. NUSCO currently forecasts construction expenditures of
approximately $83.4 million for the years 1998-2002, including
approximately $17.0 million for 1998.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
FOR THE YEAR ENDED DECEMBER 31, 1997
SCHEDULE XV
COMPARATIVE INCOME STATEMENT
- --------------------------------------------------------------------------------------
ACCOUNT DESCRIPTION 1997 1996
- --------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
INCOME
------
457 Services rendered to associate companies $333,249 $332,979
458 Services rendered to nonassociate companies 33,135 48,566
421 Miscellaneous income or loss 314 151
------------ -----------
Total Income 366,698 381,696
------------ -----------
EXPENSE
-------
920 Salaries and wages 169,225 168,130
921 Office supplies and expenses 44,404 43,843
922 Administrative expense transferred-credit - -
923 Outside services employed 75,015 76,008
924 Property insurance 30 49
925 Injuries and damages 845 910
926 Employee pensions and benefits 22,322 29,811
928 Regulatory commission expense 235 74
930.1 General advertising expenses - -
930.2 Miscellaneous general expenses 2,017 7,274
931 Rents 22,851 26,946
932 Maintenance of structures and equipment 1,515 586
403 Depreciation and amortization expense 12,212 8,400
408 Taxes other than income taxes 12,436 13,140
409 Income taxes 856 4,670
410 Provision for deferred income taxes 3,587 7,252
411 Provision for deferred income taxes-credit (4,853) (8,647)
411.5 Investment tax credit - -
426.1 Donations 327 542
426.5 Other deductions 3,669 2,701
427 Interest on long-term debt - -
430 Interest on debt to associate companies - -
431 Other interest expense 5 7
------------ -----------
Total Expense 366,698 381,696
------------ -----------
Net Income or (Loss) $0 $0
============ ===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1997
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 $4,479 $110 $- $4,589
The Connecticut Light and
Power Company 124,395 14,816 - 139,211
Public Service Company of New
Hampshire 30,580 3,437 - 34,017
North Atlantic Energy
Corporation 79 6 - 85
Western Massachusetts
Electric Company 27,175 3,013 - 30,188
Holyoke Water Power Company 2,432 324 - 2,756
Holyoke Power and Electric
Company 8 1 - 9
Northeast Nuclear Energy Company 85,159 8,099 - 93,258
North Atlantic Energy Service
Corporation 10,703 674 - 11,377
The Quinnehtuk Company 22 3 - 25
The Rocky River Realty Company 624 6 - 630
Properties Inc. 1 - - 1
Charter Oak Energy Incorporated 3,619 113 - 3,732
COE Avenue Fenix Corporation 31 5 - 36
COE Development Corporation 546 93 - 639
COE (UK) Corporation 4 1 - 5
COE Tejona Corp. 130 21 - 151
COE Argentina II Corp. 22 4 - 26
Mode 1 Communications, Inc. 443 48 - 491
Select Energy, Inc. 11,038 866 - 11,904
HEC Inc. 113 6 - 119
---------- ---------- ----------- ----------
TOTAL $301,603 $31,646 $- $333,249
========== ========== =========== ==========
</TABLE
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1997
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) $ 12,226 $ 2,161 $ - $ 14,387 $ - $ 14,387
Connecticut Valley Electric
Exchange (1) 4,202 34 - 4,236 4,236
New England Power Exchange (1) 5,557 56 - 5,613 5,613
New England Power Planning
Committee (1) 2,415 84 - 2,499 2,499
New England Power Pool (1) 6,230 13 - 6,243 6,243
Yankee Gas Services Company (1) 2 - - 2 2
------------------------------------------------------------
30,632 2,348 - 32,980 - 32,980
------------------------------------------------------------
Other miscellaneous revenues: (2)
Southern New England Telephone Co. 134 - - 134 134
Miscellenous (83 companies) 21 - - 21 21
------------------------------------------------------------
155 - - 155 - 155
------------------------------------------------------------
TOTAL $ 30,787 $ 2,348 $ - $ 33,135 $ - $ 33,135
============================================================
</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, 1997
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 155,676 2,209 157,885 11,134 206 11,340
921 OFFICE SUPPLIES AND EXPENSES 33,460 7,562 41,022 2,840 542 3,382
922 ADMINISTRATIVE EXPENSE TRANSFERRED-
CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 63,268 2,369 65,637 9,204 174 9,378
924 PROPERTY INSURANCE 0 28 28 0 2 2
925 INJURIES AND DAMAGES 758 0 758 87 0 87
926 EMPLOYEE PENSIONS AND BENEFITS 19,841 0 19,841 2,481 0 2,481
928 REGULATORY COMMISSION EXPENSE 232 0 232 3 0 3
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 1,626 182 1,808 198 11 209
931 RENTS 11,515 7,659 19,174 3,130 547 3,677
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 746 556 1,302 164 49 213
403 DEPRECIATION AND AMORTIZATION EXPENSE 0 11,370 11,370 0 842 842
408 TAXES OTHER THAN INCOME TAXES 11,098 0 11,098 1,338 0 1,338
409 INCOME TAXES 766 0 766 90 0 90
410 PROVISION FOR DEFERRED INCOME TAXES 3,587 0 3,587 0 0 0
411 PROVISION FOR DEFERRED INCOME TAXES -
CREDIT (4,853) 0 (4,853)
411.5 INVESTMENT TAX CREDIT 0 0 0 0 0 0
426.1 DONATIONS 327 0 327 0 0 0
426.5 OTHER DEDUCTIONS 3,540 9 3,549 119 1 120
427 INTEREST ON LONG-TERM DEBT 0 0 0 0 0 0
431 OTHER INTEREST EXPENSE 5 0 5 0 0 0
------------------------------------------------------
SUBTOTAL EXPENSES = 301,592 31,944 333,536 30,788 2,374 33,162
COMPENSATION FOR USE OF EQUITY CAPITAL=
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES= 0 0
431 OTHER INTEREST EXPENSE= 0 0
---------- -----------
TOTAL EXPENSES = 333,536 33,162
421 MISCELLANEOUS INCOME - CREDIT 11 (298) (287) (1) (26) (27)
------------------------------------------------------
TOTAL COST OF SERVICE = 301,603 31,646 333,249 30,787 2,348 33,135
======================================================
</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 166,810 2,415 169,225
921 OFFICE SUPPLIES AND EXPENSES 36,300 8,104 44,404
922 ADMINISTRATIVE EXPENSE TRANSFERRED-
CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 72,472 2,543 75,015
924 PROPERTY INSURANCE 0 30 30
925 INJURIES AND DAMAGES 845 0 845
926 EMPLOYEE PENSIONS AND BENEFITS 22,322 0 22,322
928 REGULATORY COMMISSION EXPENSE 235 0 235
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 1,824 193 2,017
931 RENTS 14,645 8,206 22,851
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 910 605 1,515
403 DEPRECIATION AND AMORTIZATION EXPENSE 0 12,212 12,212
408 TAXES OTHER THAN INCOME TAXES 12,436 0 12,436
409 INCOME TAXES 856 0 856
410 PROVISION FOR DEFERRED INCOME TAXES 3,587 0 3,587
411 PROVISION FOR DEFERRED INCOME TAXES -
CREDIT (4,853) 0 (4,853)
411.5 INVESTMENT TAX CREDIT 0 0 0
426.1 DONATIONS 327 0 327
426.5 OTHER DEDUCTIONS 3,659 10 3,669
427 INTEREST ON LONG-TERM DEBT 0 0 0
431 OTHER INTEREST EXPENSE 5 0 5
---------------------------------
SUBTOTAL EXPENSES = 332,380 34,318 366,698
COMPENSATION FOR USE OF EQUITY CAPITAL=
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES= 0
431 OTHER INTEREST EXPENSE= 0
-----------
TOTAL EXPENSES = 366,698
421 MISCELLANEOUS INCOME - CREDIT 10 (324) (314)
---------------------------------
TOTAL COST OF SERVICE = 332,390 33,994 366,384
=================================
</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, 1997
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 169,225 2,415 808 29,227 3,647 4,758
921 OFFICE SUPPLIES AND EXPENSES 44,404 8,104 1,464 6,028 693 1,658
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 75,015 2,543 273 21,098 4 266
924 PROPERTY INSURANCE 30 30 0 0 0 0
925 INJURIES AND DAMAGES 845 0 0 0 0 0
926 EMPLOYEE PENSIONS AND BENEFITS 22,322 0 113 2,382 0 16
928 REGULATORY COMMISSION EXPENSE 235 0 0 0 0 0
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 2,017 193 0 167 0 4
931 RENTS 22,851 8,206 0 294 0 38
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 1,515 605 0 11 0 42
403 DEPRECIATION AND AMORTIZATION EXPENSE 12,212 12,212 0 0 0 0
408 TAXES OTHER THAN INCOME TAXES 12,436 0 0 0 0 0
409 INCOME TAXES 856 0 0 0 0 0
410 PROVISION FOR DEFERRED INCOME TAXES 3,587 0 0 0 0 0
411 PROVISION FOR DEFERRED INCOME TAXES - CREDIT (4,853) 0 0 0 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0 0 0 0
426.1 DONATIONS 327 0 0 15 0 5
426.5 OTHER DEDUCTIONS 3,669 10 0 68 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 5 0 0 0 0 0
------------------------------------------------
TOTAL EXPENSES = 366,698 34,318 2,658 59,290 4,344 6,787
================================================
</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, 1997
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 8,319 3,710 7,646 2,332 10,230 14,976
921 OFFICE SUPPLIES AND EXPENSES 236 572 918 124 841 1,839
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 240 407 2,802 3,468 2,134 1,319
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 (1,227) 120 0 0 8
928 REGULATORY COMMISSION EXPENSE 0 0 0 0 0 7
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES (160) 218 16 18 2 162
931 RENTS 0 0 1 0 34 996
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 0 0 0 0 10 13
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 1 2
426.5 OTHER DEDUCTIONS 0 0 0 0 191 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 = 8,635 3,680 11,503 5,942 13,443 19,322
================================================
</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, 1997
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 19,366 15,763 6,081 2,206 13,428 4,914
921 OFFICE SUPPLIES AND EXPENSES 3,343 3,188 11 299 11,765 279
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 10,359 6,245 1,017 1,456 6,219 2,832
924 PROPERTY INSURANCE 0 0 0 0 0 0
925 INJURIES AND DAMAGES 0 28 0 0 0 0
926 EMPLOYEE PENSIONS AND BENEFITS 1 4 0 22 1 0
928 REGULATORY COMMISSION EXPENSE 0 0 0 0 0 0
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 112 (5) 125 417 319 13
931 RENTS (49) 6 0 116 11,149 299
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 2 0 0 0 406 4
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 0 294 0 0 0 0
426.5 OTHER DEDUCTIONS 149 605 0 1,525 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 = 33,283 26,128 7,234 6,041 43,287 8,341
================================================
</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, 1997
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 4,482 1,739 4,707 695 3,289 4,487
921 OFFICE SUPPLIES AND EXPENSES 1,100 33 773 194 657 285
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 2,195 (49) 1,324 41 2,240 6,582
924 PROPERTY INSURANCE 0 0 0 0 0 0
925 INJURIES AND DAMAGES 0 0 58 0 737 22
926 EMPLOYEE PENSIONS AND BENEFITS 20,719 0 16 0 147 0
928 REGULATORY COMMISSION EXPENSE 0 0 0 0 228 0
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 250 0 54 109 5 (2)
931 RENTS 0 0 0 0 0 1,761
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 0 0 275 0 0 147
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 8 2 0 0
426.5 OTHER DEDUCTIONS 0 0 0 1,121 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 = 28,746 1,723 7,215 2,162 7,303 13,282
================================================
</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, 1997
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
- ------------------------------------------------------------
ACCOUNT --------
NUMBER DESCRIPTION OF ITEMS (23)
- ------------------------------------------------------------
<S> <C>
920 SALARIES AND WAGES 0
921 OFFICE SUPPLIES AND EXPENSES 0
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0
923 OUTSIDE SERVICES EMPLOYED 0
924 PROPERTY INSURANCE 0
925 INJURIES AND DAMAGES 0
926 EMPLOYEE PENSIONS AND BENEFITS 0
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 12,436
409 INCOME TAXES 856
410 PROVISION FOR DEFERRED INCOME TAXES 3,587
411 PROVISION FOR DEFERRED INCOME TAXES - CREDIT (4,853)
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 5
--------
TOTAL EXPENSES = 12,031
========
</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, 1997
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. - Energy Delivery
(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) V.P. - Environmental, Health and Safety
(20) V.P. - Governmental Affairs
(21) V.P.,Secretary and General Counsel
(22) New England Power Pool
(23) Corporate Expenses - unallocated
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1997
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 $808 $60 $714 $34 3
President- Nuclear Group 29,227 0 27,047 2,180 366
Executive V.P. and Chief
Financial Officer 3,647 4 3,632 11 6
V.P. Fossil and Hydro Engineering
and Operations 4,758 0 4,753 5 52
V.P. and Controller (1) 8,323 11 7,924 388 160
V.P. and Treasurer 3,710 21 3,498 191 77
V.P. - Wholesale Marketing 7,646 0 7,639 7 92
V.P. - Business Strategy 2,332 88 2,231 13 30
President - Retail Business Group 10,230 14 10,214 2 24
V.P. - Energy Delivery 14,976 0 13,072 1,904 248
V.P. - Retail Marketing 19,366 122 19,244 0 274
Director - Customer Service 15,763 0 15,763 0 379
Senior V.P. and Chief Administrative
Officer 6,081 0 5,879 202 2
V.P. - Corporate Communication 2,206 1 1,933 272 39
V.P. and Chief Information Officer (2) 13,824 2 13,053 769 368
V.P. Purchasing and General
Services (3) 6,883 9 6,623 251 127
V.P. - Human Resources (4) 4,487 0 4,247 240 71
Director - Internal Audit and Security 1,739 3 1,640 96 34
V.P.- Environmental, Health and Safety 4,707 0 4,496 211 70
V.P.- Governmental Affairs 695 0 662 33 7
V.P., Secretary and
General Counsel (5) 3,330 294 2,907 129 50
New England Power Pool 4,487 0 85 4,402 0
-------------------------------------- ---------
$169,225 $629 $157,256 $11,340 2,479
====================================== =========
(1) Total amount includes $4,000 of payroll overhead.
(2) Total amount includes $396,000 of payroll overhead.
(3) Total amount includes $1,969,000 of payroll overhead.
(4) Total amount includes $5,000 of payroll overhead.
(5) Total amount includes $41,000 of payroll overhead.
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1997
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
- -----------------
KPMG PEAT MARWICK NA $212
MISCELLANEOUS (1 PAYEE) NA 35
-----------
TOTAL AUDITING SERVICES 247
===========
ADVERTISING SERVICES
- --------------------
BSA ADVERTISING INC NA 127
MISCELLANEOUS (20 PAYEES) NA 76
-----------
TOTAL ADVERTISING SERVICES 203
===========
COLLECTION SERVICES
- -------------------
CREDIT BUREAU COLLECTIONS NA 133
FINANCIAL COLLECTION AGENCIES NA 108
MISCELLANEOUS (11 PAYEES) NA 198
-----------
TOTAL COLLECTION SERVICES 439
===========
COMPUTER SERVICES
- -----------------
ADVANCED COMPUTING TECHNIQUES NA 137
DUN & BRADSTREET NA 278
EDP CONTRACT SERVICES NA 113
IBM NA 439
PITNEY BOWES INC NA 122
PRIDE TECHNOLOGIES INC NA 709
MISCELLANEOUS (40 PAYEES) NA 685
-----------
TOTAL COMPUTER SERVICES 2,483
===========
ENGINEERING SERVICES
- --------------------
ABB POWER T&D COMPANY INC NA 101
ADEPT INC NA 144
ALTRIS SOFTWARE INC NA 108
BCP TECHNICAL SERVICES INC NA 249
C W COSTELLO & ASSOCIATES INC NA 1,249
CATARACT INC NA 207
CONTINENTAL SERVICES GROUP INC NA 230
DIGITAL EQUIPMENT CORP NA 180
DUKE ENG & SERVICES INC NA 203
FPI INTERNATIONAL NA 503
HIGH TECH CONSULTANTS NA 182
INTEGRATED SYSTEMS RESOURCES NA 226
KEANE INC NA 165
MDM ENGINEERING CORP NA 387
OAK RIDGE INSTITUTE NA 212
PARAMOUNT SYSTEMS INC NA 287
PILOT SOFTWARE INC NA 183
PREMIER DATA SERVICES INC NA 194
SOFTAIDE SERVICES NA 161
SONALYSTS INC NA 162
STONE & WEBSTER CONST CO INC NA 122
TECHNICAL AID CORP NA 570
VPA CORPORATION NA 355
WILTEL COMMUNICATION SYSTEMS NA 408
YANKEE ATOMIC ELECTRIC CO NA 1,836
MISCELLANEOUS (139 PAYEES) NA 2,116
-----------
TOTAL ENGINEERING SERVICES 10,740
===========
LEGAL SERVICES
- --------------
BALLARD SPAHR ANDREWS & INGERSOLL NA 209
CARMODY & TORRANCE DR NA 228
CONSERVATION LAW FOUNDATION NA 100
DAY BERRY & HOWARD NA 2,792
HOWREY & SIMON NA 242
POLINSKY SANTOS & BOREA LLC NA 100
STEPTOE & JOHNSON NA 178
MISCELLANEOUS (22 PAYEES) NA 229
-----------
TOTAL LEGAL SERVICES 4,078
===========
PRINTING SERVICES
- -----------------
ALLIED PRINTING SERVICES INC NA 327
THE WAVERLY PRINTING CO NA 123
MISCELLANEOUS (4 PAYEES) NA 18
-----------
TOTAL PRINTING SERVICES 468
===========
TEMPORARY EMPLOYMENT SERVICES
- ------------------------------
MANPOWER INC NA 3,995
NUCON ENGINEERING ASSOC INC NA 2,479
-----------
TOTAL TEMPORARY EMPLOYMENT SERVICES 6,474
===========
OTHER SERVICES
- --------------
ADEPT INC NA 490
ADVANCED INTEG MANAG SERV INC NA 114
ANDERSEN CONSULTING NA 1,420
ARTHUR ANDERSEN LLP NA 185
BARRY BLAU & PARTNERS INC NA 795
BCP TECHNICAL SERVICES INC NA 555
BERNARD M FOX NA 216
BLANCHARD TRAINING & DEV NA 102
BURSON MARSTELLER NA 234
C W COSTELLO & ASSOCIATES INC NA 2,745
CAMBRIDGE ENERGY RESEARCH NA 245
CAMBRIDGE REPORTS RES INTL NA 226
CEGELEC ESCA CORP NA 164
CITY OF HOLYOKE NA 179
COMMONWEALTH RELOCATION SVCS NA 149
CONTRACT SOLUTIONS NA 466
COOPERS & LYBRAND LLP NA 430
CPCE INC NA 435
CREDIT CENTER INC NA 185
CT HOUSING INVESTMENT FUND NA 2,235
DATA MAIL INC NA 165
DELOITTE & TOUCHE NA 1,867
DEVELOPMENT DIMENSIONS INT NA 382
DIGITAL EQUIPMENT CORP NA 352
ENTOR CORP NA 533
EQUIFAX CREDIT INFOR SERVICES NA 164
ETP INC NA 342
EUREST DINING SERVICES NA 132
EXITECH CORP NA 170
FIRST DATA CORP NA 384
FLEXIBLE RESOURCES NA 140
FPI INTERNATIONAL NA 381
GARTNER GROUP INC NA 281
GENERAL ELECTRIC COMPANY NA 146
GHR CONSULTING SERVICES INC NA 115
H & P INC NA 273
HEC INC A 609
HEIDRICK & STRUGGLES INC NA 1,015
HEWITT ASSOCIATES NA 307
HORACE COFER ASSOCIATES INC NA 405
ICF KAISER ENGINEERS INC NA 121
INDECK MAINE ENERGY LLC NA 256
INFOTEC CONSULTING & SERV INC NA 139
INTEGRATED SYSTEMS RESOURCES NA 131
JW HOLMES & CO NA 201
LAWSON SOFTWARE NA 106
LENCO COMPUTER CONSULTING NA 173
LESLIE C JAMES PH D NA 102
LITTLE HARBOR CONSULTANTS INC NA 134
LIUSKI INTERNATIONAL INC NA 119
LOWELL COGENERATION CO LP NA 278
MARTINEZ & ASSOCIATES NA 105
MARTIN-SIGMON CONSULTING NA 114
MEGAN CORP NA 493
MICON INC NA 257
MILLETTE ASSOCIATES PC NA 157
MORGAN STANLEY & COMPANY INC NA 216
NANCY J KIRBY NA 216
OPTICOM INC NA 131
OPTIMUM HOME CARE OF CT NA 186
OPTIMUM TRAINING CENTERS LTD NA 407
OUTPUT TECHNOLOGIES INC NA 390
PARAMOUNT SYSTEMS INC NA 429
PAUL M BLANCH NA 167
PRO FITNESS NA 577
PUTNAM HAYES & BARTLETT INC NA 849
RAYTHEON QUALITY PROGRAMS DIV NA 120
RLW ANALYTICAL INC NA 621
ROCKWELL INTERNATIONAL NA 239
SCOTT MADDEN & ASSOCIATES INC NA 661
SIMSTAR INTERNATIONAL NA 145
SONALYSTS INC NA 116
SPEC CONSULTANTS INC NA 294
SPECTRUM ASSOC NA 169
SUN TECHNICAL SERVICES INC NA 257
TECHNICAL AID CORP NA 207
THAMES RECORDS MANAGEMENT INC NA 151
THE BOSTON CONSULTING GROUP NA 2,242
THE INDUS GROUP INC NA 6,194
THE NICHOLAS GROUP PC NA 139
THE WINN COMPANY NA 159
TOWERS PERRIN NA 169
UNICCO SECURITY SERVICES NA 520
W D ASSOCIATES INC NA 420
WILTEL COMMUNICATION SYSTEMS NA 241
WORCESTER ENERGY CO INC NA 220
XCALIBER CONSULTING GROUP NA 250
MISCELLANEOUS (873 PAYEES) NA 10,162
-----------
TOTAL OTHER SERVICES 49,883
-----------
$75,015
===========
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1997
OUTSIDE SERVICES EMPLOYED
VENDOR NAME DESCRIPTION OF SERVICES RENDERED
- --------------------------------------------------------------------------------------------------------
AUDITING SERVICES
- -----------------
KPMG PEAT MARWICK Professional Services in Conjunction with Evaluation of NEPOOL
ADVERTISING SERVICES
- --------------------
BSA ADVERTISING INC Furnish Advertising Services as Requested by Employment Department
COLLECTION SERVICES
- -------------------
CREDIT BUREAU COLLECTIONS Furnish Collection Services for the Western Mass Region and the
Hartford Area
FINANCIAL COLLECTION AGENCIES Furnish Collection Services for the Eastern Region
COMPUTER SERVICES
- -----------------
ADVANCED COMPUTING TECHNIQUES Technical Support for NUTIMS program and I96 Desktop Team
DUNN & BRADSTREET Annual Software License and Support; Reporting
EDP CONTRACT SERVICES Provide consulting services
IBM Consulting Services for Development of an IT Strategy; Disaster
Recovery Services
PITNEY BOWES INC Maintenance and on-site repairs
PRIDE TECHNOLOGIES INC Provide technicians services for I96 Pathfinder Phase;
Desktop Maintenance
ENGINEERING SERVICES
- --------------------
ABB POWER T&D COMPANY INC Lease/purchase of Windowcouger Program with Pace Module
ADEPT INC Provide programming support of TCIAS2
ALTRIS SOFTWARE INC Provide consulting services for EDMS infrastructure
support needs
BCP TECHNICAL SERVICES INC Provide staffing and consulting services for NNECO Nuclear
Oversight Organization at Millstone
C W COSTELLO & ASSOCIATES INC Provide on-site programming services and training for
Wholesale Marketing Information Tracking System
CATARACT INC Provide support for Millstone Operational Standards Report
CONTINENTAL SERVICES GROUP INC Support the MIMS Project for Nuclear Production Materials
DIGITAL EQUIPMENT CORP Provide consulting services for Wethersfield location
DUKE ENG & SERVICES INC Provide professional services to Nuclear Oversight Group for
recovery of the Millstone units
FPI INTERNATIONAL Provide consulting services for Root Cause Analysis at
Millstone Station
HIGH TECH CONSULTANTS Support for DB2 Administration
INTEGRATED SYSTEMS RESOURCES Provide consultant services for support of SYBASE DBA Activities,
backup and recovery analysis; UNIX programming for Enterprise
Management.
KEANE INC Provide software support and services for RMG Marketing
Information System
MDM ENGINEERING CORP Provide services for Regulatory Affairs Department and provide
support for Millstone 1 and CY PM Optimization Project
OAK RIDGE INSTITUTE Provide consulting services and assistance in establishing a
Public Education Program for Decontamination & Decommissioning
of Nuclear Power Plants
PARAMOUNT SYSTEMS INC Provide assistance to I96 Team in rewriting VAX system applications
to Lotus Notes format
PILOT SOFTWARE INC Provide consulting services to support MIDDS and TACS project
PREMIER DATA SERVICES INC Services to Support the INDUS Passport Infrastructure Project
SOFTAIDE SERVICES Provide computer programming services for TESSERACT
SONALYSTS INC Furnish engineering assistance to assist with Operating Experience
Evaluations
STONE & WEBSTER CONST CO INC Labor and supervision for Letdown Support Mods
TECHNICAL AID CORP Furnish professional and clerical personnel to support Marketing
and Conservation Programs
VPA CORPORATION Provide consulting services as requested in support of Special
Projects Department at Millstone Station
WILTEL COMMUNICATION SYSTEMS Furnish resident technicians to complete Customer Service Requests
at NU System locations
YANKEE ATOMIC ELECTRIC CO QA & Administration of Access Authorization and Fitness for Duty
Programs; Audit and Assessment Support Services
LEGAL SERVICES
- --------------
BALLARD SPAHR ANDREWS & INGERSOLL Provide Legal Services for separation of NEPOOL from NU
CARMODY & TORRANCE DR 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
POLINSKY SANTOS & BOREA LLC 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 INC Temporary Labor Services
NUCON ENGINEERING ASSOC INC Furnish Services for NUSCO Retiree Skill Bank
OTHER SERVICES
- --------------
ADEPT INC Provide services for EDS Project and TCIAS2
ADVANCED INTEG MANAG SERV INC Provide Training and Technical Support for Licensed
Reactor Operators
ANDERSEN CONSULTING Provide Consulting Services for NEPOOL and ISO Transition
Projects
ARTHUR ANDERSEN LLP Provide Consulting Services for Restructuring of Electric
Utility Industry
BARRY BLAU & PARTNERS INC Furnish Services to Assist in Developing Marketing Communications
Programs
BCP TECHNICAL SERVICES INC Provide staff augmentation to support NNECO Nuclear Oversight
Organization at Millstone Station
BERNARD M FOX Provide consulting services as requested by Board of Trustees
BLANCHARD TRAINING & DEV Provide Leadership Training for Supervisors; Materials for Team
Working Training
BURSON MARSTELLER Consulting Communication Services
C W COSTELLO & ASSOCIATES INC On-Site Computer Programming Services
CAMBRIDGE ENERGY RESEARCH Furnish consulting services as required by NU's New Business and
Product Development Department
CAMBRIDGE REPORTS RES INTL Provide services to conduct Quarterly Customer Satisfaction Surveys
and furnish Public Opinion Surveys and Strategic Communications
CEGELEC ESCA CORP Furnish Software for Oasis Program
CITY OF HOLYOKE Provide Police Officers for Traffic Duty
COMMONWEALTH RELOCATION SVCS Provide a Home Sales Assistance Program for Qualified Employees
CONTRACT SOLUTIONS Provide Mechanical Engineering Services for Millstone 3
COOPERS & LYBRAND LLP Provide consulting services for NU Strategic Environmental Project
CPCE INC Furnish contractor services for WIN95/Notes
CREDIT CENTER INC Furnish collection services for early placement of final bills
CT HOUSING INVESTMENT FUND Support the Administration and Oversight of the Wrap Unit to Provide
Low-Income Weatherization Services
DATA MAIL INC Mailing Services for Community Relations Department
DELOITTE & TOUCHE Furnish services to develop IT Application & Software Architecture
and Risk Management Policies & Procedures for Wholesale Marketing
Department
DEVELOPMENT DIMENSIONS INT Training and Assessment Activities - Nuclear and Information
Technology Reengineering Selection Process
DIGITAL EQUIPMENT CORP Provide support for I96 Project; printer maintenance
ENTOR CORP Provide instruction services for MP3 Operator Training
EQUIFAX CREDIT INFOR SERVICES Analytical Services to Verify Customer Database, Provide
Firmographics and Demographics Data
ETP INC EAP Services for Employees and Dependents; Supervisory Training
Services
EUREST DINING SERVICES Furnish Food Service to Wethersfield, Berlin, Waterbury, Hartford
and Brush Hill cafeterias; Furnish meals to RBG Training Center
Students
EXITECH CORP Provide Nuclear Consulting Services and Simulator Training
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 Provide consulting services for Root Cause Analysis at Millstone
Station as assigned by the Quality Assurance Department
GARTNER GROUP INC Provide research and consulting services for IT
GENERAL ELECTRIC COMPANY Supply MAPS V9.0 software (Multi-Area Production Simulation)
GHR CONSULTING SERVICES INC Furnish Construction Managing Services for completion of energy
efficient measures at Meriden Water Treatment Facility
H & P INC Furnish Assessment Services relative to Nuclear Safety and Oversight
and Nuclear Quality Performance
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
HEIDRICK & STRUGGLES INC Provide executive search services
HEWITT ASSOCIATES Consulting services for ESCO Compensation & Benefits Study;
RBG Exempt Compensation Study; Actuarial services for NUSCO Benefits
HORACE COFER ASSOCIATES INC Provide Training Services for Millstone Units
ICF KAISER ENGINEERS INC Provide software development services for C-Relm (Customer Relm)
INDECK MAINE ENERGY LLC Readiness Fees / NEPEX
INFOTEC CONSULTING & SERV INC Provide consulting services as a Migration Manager
INTEGRATED SYSTEMS RESOURCES Provide consulting services
JW HOLMES & CO Provide training services on the MP2 Materials Upgrade Project
LAWSON SOFTWARE Provide software for Human Resource Department
LENCO COMPUTER CONSULTING Provide consulting services for Year 2000 Program
LESLIE C JAMES PH D Provide consulting services in support of Organizational Development
and Succession Planning Activities at Millstone Station
LITTLE HARBOR CONSULTANTS INC Provide consulting services as Independent Third Party Oversight
of the Employee Safety Concerns Program at Millstone Station
LIUSKI INTERNATIONAL INC Provide computer supplies
LOWELL COGENERATION CO LP Costs associated with Lowell Plant Preparation
MARTINEZ & ASSOCIATES Provide consulting services
MARTIN-SIGMON CONSULTING Provide consulting services to support Independent Assessment of
Nuclear Oversight at Millstone Station
MEGAN CORP Provide training and instruction for contractors; support licensing
programs at MP2 Operator Training Department
MICON INC Services to Support NUSCO's New Customer Information and
Billing/Order System
MILLETTE ASSOCIATES PC Provide Physician Services to Northeast Utilities
MORGAN STANLEY & COMPANY INC Provide consulting services
NANCY J KIRBY Provide services for various training and assessment assignments
OPTICOM INC Install Telcom Equipment
OPTIMUM HOME CARE OF CT Furnish Professional Nursing and EMT Services to Berlin Health Unit
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
PAUL M BLANCH Provide consulting services for Nuclear Oversight at Millstone
PRO FITNESS Furnish consulting services to develop the Health Enhancement Program
PUTNAM HAYES & BARTLETT INC Market Power Analysis
RAYTHEON QUALITY PROGRAMS DIV Provide engineering services for Millstone Units & Connecticut Yankee
RLW ANALYTICAL INC Services to Determine Net Energy and Demand Impacts of 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)
SCOTT MADDEN & ASSOCIATES INC Furnish management consulting services for Strategic Planning Project
SIMSTAR INTERNATIONAL Furnish computer software services
SONALYSTS INC Furnish services to assist Millstone Nuclear Training Department
in Corrective and Recovery Actions
SPEC CONSULTANTS INC QA/QC Inspection Services for Millstone Units 1,2 &3, and CY
SPECTRUM ASSOC Furnish services to perform Customer Center Telephone Survey
SUN TECHNICAL SERVICES INC Contracted Instruction Services (Corrective Maintenance)
TECHNICAL AID CORP Furnish Professional and Clerical Personnel to Support Marketing
and Conservation Programs
THAMES RECORDS MANAGEMENT INC Provide microfilming services
THE BOSTON CONSULTING GROUP Furnish consulting services as requested by management
THE INDUS GROUP INC Move Baseline Changes From/To the Indus Development System; MIMS
Data Conversion
THE NICHOLAS GROUP PC Services to Determine Impacts of Energy Action Program, Energy
Conscious Construction Program
THE WINN COMPANY Consulting, Media Training and Video Production
TOWERS PERRIN Furnish consulting services for Benefits Department
UNICCO SECURITY SERVICES Provide Uniformed Security Guard Service
W D ASSOCIATES INC Provide consulting services to assist in maintenance of Millstone
Unit 1 Emergency Operating Procedures
WILTEL COMMUNICATION SYSTEMS Provide maintenance of telephone system at Merrimack and Berlin
WORCESTER ENERGY CO INC Provides services for Initial Reactivation and Project Manager
XCALIBER CONSULTING GROUP Provide services and support for Leadership Training Program for
Millstone Unit 3 Management Team
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1997
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 ($52)
Supplemental Retirement and Savings Plan 6,820
Group Life, Long-term Disability, Hospital
and Medical Insurance Expenses 10,091
Post retirement medical benefit - FAS 106 5,470
Other Employee Benefits Expenses (7)
---------
TOTAL $22,322
=========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1997
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, 1997
MISCELLANEOUS GENERAL EXPENSES
ACCOUNT 930.2
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>
Information technology $ 449
Shareholder reports and meetings 396
Employee development expenses 279
Closing fees - revolving credit facility 231
Northeast Power Coordinating Council 147
New York Stock Exchange - annual listing fee 69
Credit monitoring fees 67
Economic development 49
Other miscellaneous expenses (76 items) 330
------------
TOTAL $ 2,017
============
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1997
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 $8,525
Computer/Office equipment 14,058
Vehicles 268
---------
TOTAL $22,851
=========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1997
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 $935
Massachusetts Unemployment 61
Local property 817
Connecticut Corporation Business Tax (681)
Other (5)
---------
Sub-Total 1,127
---------
(2) U.S. Government Taxes:
Federal Insurance Contribution Act 8,722
Medicare Tax 2,467
Federal Unemployment 120
---------
Sub-Total 11,309
---------
TOTAL $12,436
=========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1997
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> <C>
UNIVERSITY OF CONNECTICUT CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT $120
CAMBRIDGE REPORTS RES INTL CHARITABLE CONTRIBUTION 35
MA INSTITUTE OF TECHNOLOGY CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 24
ST JOSEPH COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 15
CITIZENS FOR CONNECTICUTS CHARITABLE CONTRIBUTION 10
SCIENCE CENTER OF CONNECTICUT CHARITABLE CONTRIBUTION 9
THE E R HITCHCOCK COMPANY INC CHARITABLE CONTRIBUTION 8
GREENFIELD COMMUNITY COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 5
TRINITY COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 5
WESLEYAN UNIVERSITY CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 5
NATIONAL CONSUMER LAW CENTER CHARITABLE CONTRIBUTION 5
UNIVERSITY OF MASSACHUSETTS CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 5
SEA RESEARCH FOUNDATION INC CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 5
PRIDE TECHNOLOGIES INC CHARITABLE CONTRIBUTION 4
HOW 2 DESIGN CHARITABLE CONTRIBUTION 4
CHAMBER OF COMMERCE CHARITABLE CONTRIBUTION 4
MISCELLANEOUS (105 PAYEES) CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 64
-----------
TOTAL $327
===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1997
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> <C>
Executive incentive
compensation plan Various NUSCO Officers $1,521
Government relation
expenditures Black Kelly Scruggs & Healey 181
Gaffney, Bennett and Associates, Inc. 115
Issues Management Group 125
Updike Kelly & Spellacy, PC 119
Miscellaneous (27 items) 62
Communication services Allied Printing Services, Inc. 58
Cronin & Company 1,037
Miscellaneous (26 items) 618
Contributions Miscellaneous (89 items) 219
Accruals/(surrenders), net
for life insurance of
officers and employees where
the company is the
beneficiary (398)
Other Miscellaneous (2 items) 12
--------
TOTAL $3,669
========
</TABLE>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1997
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, 1997)
Chairman, President and Chief Executive Officer
- President - Nuclear Group
- President - Retail Business Group
- Vice President - Energy Delivery
- 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 - Environmental Health & Safety
- Vice President - Corporate Communications
- Vice President & Chief Information Officer
- Vice President - Purchasing and General Services
- Vice President - Human Resources
- Director - Internal Audit and Security
- Vice President - Governmental Affairs
- Vice President - Secretary and General Counsel
NORTHEAST UTILITIES SERVICE COMPANY
-----------------------------------
METHODS OF ALLOCATION
---------------------
For the year ended December 31, 1997
------------------------------------
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
19) Shareholder Equity
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
During 1997, there was no compensation for use of capital billed to
the associated companies.
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1997
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 $ 0
=========
MARKETING:
Revenues: $ 26,138
=========
Expenses:
Purchased power 23,850
Payroll 13
---------
$ 23,863
=========
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 23, 1998
--------------------
<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-31-1997 DEC-31-1996
<PERIOD-END> DEC-31-1997 DEC-31-1996
<BOOK-VALUE> PER-BOOK PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 40,455 45,231
<TOTAL-INVESTMENTS> 4,155 4,815
<TOTAL-CURRENT-ASSETS> 281,976 392,411
<TOTAL-DEFERRED-DEBITS> 54,656 31,884
<OTHER-ASSETS-AND-DEBITS> 0 0
<TOTAL-ASSETS-AND-DEBITS> 381,242 474,341
<TOTAL-PROPRIETARY-CAPITAL> 1 1
<TOTAL-LONG-TERM-DEBT> 0 0
<NOTES-PAYABLE> 0 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 141,950 216,275
<OTHER-CURR-AND-ACCRUED-LIAB> 173,073 219,864
<TOTAL-DEFERRED-CREDITS> 66,218 38,201
<DEFERRED-INCOME-TAX> 0 0
<TOT-LIABIL-AND-PROPRIET-CAP> 381,242 474,341
<SERVICES-ASSOCIATE-COMPANIES> 333,249 332,979
<SERVICES-NON-ASSOCIATE-COMP> 33,135 48,566
<MISC-INCOME-OR-LOSS> 314 151
<TOTAL-INCOME> 366,698 381,696
<SALARIES-AND-WAGES> 169,225 168,130
<EMPLOYEE-PENSION-AND-BENEFIT> 22,322 29,811
<OTHER-EXPENSES> 175,151 183,755
<TOTAL-EXPENSES> 366,698 381,696
<NET-INCOME> 0 0
<TOTAL-EXPENSES-DIRECT-COST> 332,380 350,433
<TOTAL-EXPENSES-INDIRECT-COST> 34,318 31,263
<TOT-EXP-DIRECT-AND-INDIRECT> 366,698 381,696
<PERSONNEL-END-OF-YEAR> 2,479 2,627
</TABLE>
