Form U -13 - 60
Mutual and Subsidiary Service Companies
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1998 and Ending December 31, 1998
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
(S210.3-0.1(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, (S210.3-0.1(c)).
7. MAJOR AMENDMENTS OR CORRECTIONS
Any company desiring to amend or correct a major omission or error in a
report after it has been filed with the Commission shall submit an amended
report including only those pages, schedules, and entries that are to be
amended or corrected. A cover letter shall be submitted requesting the
Commission to incorporate the amended report changes and shall be signed by
a duly authorized officer of the company.
8. DEFINITIONS
Definitions contained in Instruction 01-8 to the Uniform System of Accounts
for Mutual Service Companies and Subsidiary Service Companies, Public Utility
Holding Company Act of 1935, as amended February 2, 1979 shall be applicable
to words or terms used specifically within this Form U-13-60.
9. ORGANIZATION CHART
The service company shall submit with each annual report a copy of its
current organization chart.
10. METHODS OF ALLOCATION
The service company shall submit with each annual report a listing of the
currently effective methods of allocation being used by the service company
and on file with the Securities and Exchange Commission pursuant to the
Public Utility Holding Company Act of 1935.
11. ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
The service company shall submit with each annual report a copy of the annual
statement supplied to each associate company in support of the amount of
compensation for use in capital billed during the calendar year.
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
---------------------------------------------
Schedule or Page
Description of Schedules and Accounts Acct. No. No.
- ------------------------------------- ------------------- -----
COMPARATIVE BALANCE SHEET Schedule I 4-5
SERVICE COMPANY PROPERTY Schedule II 6-7
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY Schedule III 8
INVESTMENTS Schedule IV 9
ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES Schedule V 10
FUEL STOCK EXPENSES UNDISTRIBUTED Schedule VI 11
STORES EXPENSE UNDISTRIBUTED Schedule VII 12
MISCELLANEOUS CURRENT AND ACCRUED ASSETS Schedule VIII 13
MISCELLANEOUS DEFERRED DEBITS Schedule IX 14
RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES Schedule X 15
PROPRIETARY CAPITAL Schedule XI 16
LONG-TERM DEBT Schedule XII 17
CURRENT AND ACCRUED LIABILTIES Schedule XIII 18
NOTES TO FINANCIAL STATEMENTS Schedule XIV 19
COMPARATIVE INCOME STATEMENT Schedule XV 20
ANALYSIS OF BILLING - ASSOCIATE COMPANIES Account 457 21
ANALYSIS OF BILLING - NONASSOCIATE COMPANIES Account 458 22
ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE
AND NONASSOCIATE COMPANIES Schedule XVI 23
SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE
FUNCTION Schedule XVII 24-25
DEPARTMENTAL ANALYSIS OF SALARIES Account 920 26
OUTSIDE SERVICES EMPLOYED Account 923 27
EMPLOYEE PENSIONS AND BENEFITS Account 926 28
GENERAL ADVERTISING EXPENSES Account 930.1 29
MISCELLANEOUS GENERAL EXPENSES Account 930.2 30
RENTS Account 931 31
TAXES OTHER THAN INCOME TAXES Account 408 32
DONATIONS Account 426.1 33
OTHER DEDUCTIONS Account 426.5 34
NOTES TO STATEMENT OF INCOME Schedule XVIII 35
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
--------------------------------------------
Page
Description of Reports or Statements No.
- ------------------------------------ -----
ORGANIZATION CHART 36
METHODS OF ALLOCATION 37
ANNUAL STATEMENT OF COMPENSATION FOR
USE OF CAPITAL BILLED 38
ELECTRIC POWER BROKERING AND MARKETING ACTIVITIES 38A
SIGNATURE PAGE 39
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the current and prior year.
- ----------------------------------------------------------------------------------------
ACCOUNT ASSETS AND OTHER DEBITS AS OF DECEMBER 31
- ----------------------------------------------------------------------------------------
1998 1997
(Thousands of Dollars)
<S> <C> <C>
SERVICE COMPANY PROPERTY
------------------------
101 Service company property (Schedule II) $93,857 $84,317
107 Construction work in progress (Schedule II) 5,871 7,788
----------- -----------
Total Property 99,728 92,105
----------- -----------
108 Less accumulated provision for depreciation and
amortization of service company property (Schedule III) 63,290 51,650
----------- -----------
Net Service Company Property 36,438 40,455
----------- -----------
INVESTMENTS
-----------
123 Investments in associate companies (Schedule IV) - -
124 Other investments (Schedule IV) 4,859 4,155
----------- -----------
Total Investments 4,859 4,155
----------- -----------
CURRENT AND ACCRUED ASSETS
--------------------------
131 Cash 10,363 9,030
134 Special deposits 22 -
135 Working funds 470 470
136 Temporary cash investments (Schedule IV) 53,500 34,700
141 Notes receivable - -
143 Accounts receivable 75,855 42,017
144 Accumulated provision of uncollectible accounts - -
146 Accounts receivable from associate companies (Schedule V) 58,543 193,151
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies 639 34
163 Stores expense undistributed (Schedule VII) - -
165 Prepayments 2,607 2,574
174 Miscellaneous current and accrued assets (Schedule VIII) - -
----------- -----------
Total Current and Accrued Assets 201,999 281,976
----------- -----------
DEFERRED DEBITS
---------------
181 Unamortized debt expense - -
184 Clearing accounts 18 704
186 Miscellaneous deferred debits (Schedule IX) 37,833 36,308
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes 15,366 17,644
----------- -----------
Total Deferred Debits 53,217 54,656
----------- -----------
TOTAL ASSETS AND OTHER DEBITS $296,513 $381,242
=========== ===========
</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
- ----------------------------------------------------------------------------------------
1998 1997
(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 78,739 82,544
233 Notes payable to associate companies (Schedule XIII) 107,350 141,950
234 Accounts payable to associate companies (Schedule XIII) 5,124 33,894
236 Taxes accrued 3,987 14,487
237 Interest accrued 2 13
238 Dividends declared - -
241 Tax collections payable (470) (625)
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 31,357 42,760
----------- -----------
Total Current and Accrued Liabilities 226,089 315,023
----------- -----------
DEFERRED CREDITS
----------------
253 Other deferred credits 70,423 66,218
255 Accumulated deferred investment tax credits - -
----------- -----------
Total Deferred Credits 70,423 66,218
----------- -----------
282 ACCUMULATED DEFERRED INCOME TAXES - -
--------------------------------- ----------- -----------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $296,513 $381,242
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1998
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 $2,035 $2,456 $0 ($98) $4,393
304 LAND AND LAND RIGHTS
305 STRUCTURES AND IMPROVEMENTS
306 LEASEHOLD IMPROVEMENTS 1,019 1,019
307 EQUIPMENT (2) 62,959 7,123 (974) (1,039) 70,017
308 OFFICE FURNITURE AND EQUIPMENT 16,719 2 16,721
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT 5 5
310 AIRCRAFT AND AIRPORT EQUIPMENT
311 OTHER SERVICE COMPANY
PROPERTY (3) 1,580 (122) 1,702
---------- --------- ----------- ---------- ----------
SUB-TOTAL 84,317 9,581 (1,096) (1,137) 93,857
---------- --------- ----------- ---------- ----------
107 CONSTRUCTION WORK IN
PROGRESS (4) 7,788 (1,917) 5,871
---------- --------- ----------- ---------- ----------
TOTAL $92,105 $7,664 ($1,096) ($1,137) $99,728
========== ========= =========== ========== ==========
- -------------------------------------------------------------------------------------------
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
Transfer of service company property to the Operating Companies.
</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 $2,282 $39,172
307NB Construction Equipment 63 322
307NC Other Communication Equipment 4,620 26,340
307NL Research and Laboratory Equipment 75 3,912
307NM Microwave Equipment 5 182
307NP Printing and Stationery Equipment 78 89
----------- ----------
TOTAL $7,123 $70,017
=========== ==========
- -------------------------------------------------------------------------------------------
(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, 1998
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 $976 $102 984 $2,062
304 LAND AND LAND RIGHTS
305 STRUCTURES AND IMPROVEMENTS
306 LEASEHOLD IMPROVEMENTS 905 5 910
307 EQUIPMENT 34,318 10,102 (974) (1,181) 44,213
308 OFFICE FURNITURE AND FIXTURES 14,759 327 38 15,124
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT 2 2 4
310 AIRCRAFT AND AIRPORT EQUIPMENT
311 OTHER SERVICE COMPANY
PROPERTY 690 140 (122) 25 977
---------- --------- ----------- ---------- ----------
TOTAL $51,650 $10,676 ($1,096) ($132) $63,290
========== ========= =========== ========== ==========
- --------------------------------------------------------------------------------------------
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
NONE
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1998
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) 4,155 4,859
---------- ----------
Total - ACCOUNT 124 4,155 4,859
---------- ----------
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
Fidelity Money Market Fund, due January 4, 1999 0 12,850
Provident Money Market Fund, due January 4, 1999 0 16,200
Goldman Sachs Money Market Fund, due January 4, 1999 0 24,450
Fidelity Money Market Fund, due January 2, 1998 3,913 0
Merrill Lynch Money Market Fund, due January 2, 1998 3,556 0
Provident Money Market Fund, due January 2, 1998 18,181 0
Goldman Sachs Money Market Fund, due January 2, 1998 9,050 0
---------- ----------
Total - ACCOUNT 136 34,700 53,500
---------- ----------
GRAND TOTAL $38,855 $58,359
========== ==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1998
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 $217 $1,882
The Connecticut Light and Power Company 46,606 (13,917)
The Rocky River Realty Company 81 390
Holyoke Water Power Company 817 632
Holyoke Power and Electric Company (10) (621)
Western Massachusetts Electric Company 10,931 2,821
Public Service Company of New Hampshire 5,862 3,501
Properties, Inc. 1 0
North Atlantic Energy Corporation 36 (41)
North Atlantic Service Energy Corporation 2,022 1,767
The Quinnehtuk Company 3 40
Northeast Nuclear Energy Company 20,639 750
Charter Oak Energy Incorporated (182) 9
COE Tejona Corporation 13 0
COE Development Corporation 54 0
COE Ave Fenix Corporation 0 21
Mode 1 Communications, Inc. 151 3
Select Energy, Inc. (1,367) 7,400
HEC Inc. 27 56
---------- -----------
85,901 4,693
---------- -----------
NOTES RECEIVABLE (MONEY POOL) FROM ASSOCIATE COMPANIES
- -------------------------------------------------------
The Connecticut Light and Power Company 61,300 0
North Atlantic Energy Corporation 9,950 0
The Rocky River Realty Company 15,700 16,050
The Quinnehtuk Company 5,350 5,900
Western Massachusetts Electric Company 14,350 30,900
HEC Inc. 600 1,000
---------- -----------
107,250 53,850
---------- -----------
TOTAL $193,151 $58,543
========== ===========
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, 1998
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 $3,335
The Connecticut Light and Power Company 127,961
Holyoke Water Power Company 303
Holyoke Power and Electric Company (7,672)
Western Massachusetts Electric Company 52,256
Public Service Company of New Hampshire 87,115
Properties, Inc. 3
North Atlantic Energy Corporation (573)
North Atlantic Service Energy Corporation 7,981
Northeast Nuclear Energy Company 46,891
Charter Oak Energy Incorporated 271
COE Development Corporation 17
COE Argentina II Corporation (11)
COE Tejona Corporation 1
COE Fenix Corporation 4
Select Energy, Inc. 9,852
Mode 1 Communication, Inc. 36
The Quinnehtuk Company 296
The Rocky River Realty Company 902
HEC Inc. 40
-----------
TOTAL $329,008
===========
Convenience payments result primarily from the following items:
Net Power Exchange $39,819
Employee Pensions and Benefits 95,348
U.S. Department of Energy Fees 3,656
Electric Power Research Institute Fees 1,227
Legal Services 22,312
Nuclear Insurance 1,567
Non-Nuclear Insurance 15,878
Engineering Services 8,633
Communication Expenses 1,620
Payroll Deductions to Credit Unions 30,413
Temporary Personnel Services 4,009
Tree Trimming 3,788
Conservation Consulting 7,257
Storm Emergency 7,447
Overhead Line Construction 3,262
Computers Services 1,016
Fleet leasing 5,015
Fuel Purchases 49,268
Environmental Insurance Settlement (14,000)
Postage-customer billing 5,759
Financing Fees 1,250
Low Income Weatherization Services 1,429
Installation of LED Traffic Signals 2,514
DPUC Assessment 1,384
Miscellaneous (1,013 items) 29,137
-----------
TOTAL $329,008
===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1998
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 $465 $14 $479
The above fuel stock expenses are billed
back to each of the associated companies
listed below:
The Connecticut Light and Power Company (234) (4) (238)
Public Service Company of New Hampshire (158) (8) (166)
Western Massachusetts Electric Company (7) 0 (7)
Holyoke Water Power Company (66) (2) (68)
------- ------- -------
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, 1998
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 $1,877 $33 $1,910
The above stores expenses are billed back
to each of the companies listed below:
The Connecticut Light and Power Company (963) (28) (991)
Public Service Company of New Hampshire (212) (8) (220)
Western Massachusetts Electric Company (127) (4) (131)
Holyoke Water Power Company (31) 0 (31)
Northeast Nuclear Energy Company (477) 1 (476)
North Atlantic Energy Service Corporation (4) 0 (4)
Select Energy, Inc. (1) 0 (1)
Connecticut Yankee Atomic Power Company -
(nonassociate company) (62) 6 (56)
------- ------- -------
TOTAL $0 $0 $0
======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1998
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, 1998
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 $23,985 $22,677
Unfunded supplemental executive retirement plan 10,607 10,607
Unearned Stock Compensation 0 390
Agents account clearing 713 1,027
Employees performance payments 106 101
Receivable from VEBA trust for retiree's medical/life claims 109 2,038
Deposit for transmission services 720 720
Miscellaneous (15 items at beginning and 25 items at end of year) 68 273
----------- ----------
TOTAL $36,308 $37,833
=========== ==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1998
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 1,317
Wind Research 123
Solar Power Research 34
New Hampshire Wind Assessment 40
Landfill Gas Energy Systems 13
Fuel Cell Development 8
Advanced Energy Systems PV 8
Miscellaneous, Various Co-funding project cost, etc. 172
The above expenses are billed back to each of the
associated companies listed below:
The Connecticut Light and Power Company (1,055)
Public Service Company of New Hampshire (110)
Western Massachusetts Electric Company (233)
Holyoke Water Power Company (6)
Northeast Atlantic Energy Service Company (311)
-------
TOTAL $0
=======
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1998
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, 1998
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, 1998
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 $34,200 $34,400
The Connecticut Light and Power Company 0 6,600
North Atlantic Energy Corporation 0 30,350
Northeast Nuclear Energy Company 98,600 25,900
Holyoke Water Power Company 9,150 10,100
----------- ----------
TOTAL $141,950 $107,350
=========== ==========
- ---------------------------------------------------------------------------------------
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
Northeast Utilities $381 $400
The Connecticut Light and Power Company 841 (1,460)
The Rocky River Realty Company 392 587
Public Service Company of New Hampshire 29,031 3,039
Western Massachusetts Electric Company 2,307 2,031
Northeast Nuclear Energy Company 918 540
North Atlantic Energy Service Company 10 5
HEC Inc. 14 0
Holyoke Water Power Company 0 (18)
----------- ----------
TOTAL $33,894 $5,124
=========== ==========
- ---------------------------------------------------------------------------------------
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES
Pension Cost $24,746 $12,356
Performance Reward Program 14,608 16,195
Payroll Accrual 1,361 1,986
Payroll Deductions 772 1,189
Early Retirement Program 1,258 (384)
Interest on Connecticut Sales Tax Settlement 15 15
----------- ----------
TOTAL $42,760 $31,357
=========== ==========
</TABLE>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1998
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), is a wholly
owned subsidiary of Northeast Utilities (NU). The Connecticut Light and
Power Company (CL&P), Public Service Company of New Hampshire (PSNH),
Western Massachusetts Electric Company (WMECO), Holyoke Water Power Company
(HWP), and North Atlantic Energy Corporation (NAEC) are the operating
subsidiaries of the Northeast Utilities system (NU system) and are wholly
owned by NU. NUSCO provides centralized accounting, administrative,
data processing, engineering, financial, legal, operational, planning,
purchasing, and other services to the NU system companies.
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, as approved by the appropriate
regulatory agency.
Depreciation rates are applied to the average plant-in-service during the
period. 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. The depreciation rates for the several classes
of plant-in-service are equivalent to a composite rate of 12.6 percent in
1998 and 11.5 percent in 1997.
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 ptions. At December
31, 1998, NUSCO's capital lease obligations were immaterial.
Rental payments charged to operating expenses for 1998 and 1997 amounted
to approximately $19,000 and $348,000, respectively, for capital leases
and $13,057,000 and $18,542,000, respectively, for operating leases.
Interest included in capital lease rental payments for 1998 was
approximately $14,000. Interest included in capital lease rental payments
for 1998 was immaterial.
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, 1998 are approximately:
Period Operating Leases
(Thousands of Dollars)
1999 $ 5,600
2000 4,900
2001 4,500
2002 3,100
2003 1,200
After 2003 8,300
Future minimum lease payments $27,600
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,
1998 and 1997, NUSCO has recorded long-term prepaid rent of approximately
$22.7 million and $24.0 million, respectively. 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 NU 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. Borrowings based on loans from NU parent, however, bear
interest at NU parent's cost and must be repaid based upon the terms of
NU parent's original borrowing.
4. PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS
The NU system subsidiaries, including NUSCO, participate in a uniform
noncontributory defined benefit retirement plan covering all regular NU
system employees. Benefits are based on years of service and the employees'
highest eligible compensation during 60 consecutive months of employment.
NUSCO's direct portion of the NU system's pension credit approximated $12.4
million in 1998 and $3.9 million in 1997.
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.
The NU system subsidiaries, including NUSCO, also provide certain health
care benefits, primarily medical and dental, and life insurance benefits
through a benefit plan to retired employees. These benefits are available
for employees retiring from the NU system who have met specific service
requirements. For current employees and certain retirees, the total benefit
is limited to two times the 1993 per-retiree heath care cost. These costs
are charged to expense over the future estimated worklife of the employee.
NUSCO is funding postretirement costs through external trusts. NUSCO is
funding, on an annual basis, amounts that are tax-deductible under the
Internal Revenue Code.
Pension and trust assets are invested primarily in domestic and
international equity securities and bonds.
The following table represents the plans' beginning benefit obligation
balance reconciled to the ending benefit obligation balance, beginning
fair value of plan assets balance reconciled to the ending fair value
of plan assets balance and the respective funds' funded status reconciled
to the Balance Sheets:
The components of net cost are:
At December 31,
Pension Benefits Postretirement Benefits
1998 1997 1998 1997
(Thousands of Dollars)
Change in benefit obligation
Benefit obligation at beginning
of year $(375,065) $(342,345) $(57,729) $(61,657)
Service cost (9,787) (10,729) (1,638) (1,657)
Interest cost (24,009) (26,358) (3,986) (4,118)
Transfers 24,151 (6,136) - -
Actuarial (loss)/gain (1,660) (7,588) 353 5,169
Benefits paid 18,946 17,759 4,575 4,534
Curtailments and settlements - 332 - -
Benefit obligation at end of year $(367,424) $(375,065) $(58,425) $(57,729)
Change in plan assets
Fair value of plan assets at
beginning of year $509,898 $432,211 $ 29,441 $ 23,687
Actual return on plan assets 68,418 89,310 4,078 4,815
Employer contribution - - 5,118 5,473
Benefits paid (18,946) (17,759) (4,575) (4,534)
Transfers (24,801) 6,136 - -
Fair value of plan assets at end
of year $534,569 $509,898 $ 34,062 $ 29,441
Funded status at December 31 $167,145 $134,833 $(24,363) $(28,288)
Unrecognized transition amount (4,711) (5,317) 35,462 37,995
Unrecognized prior service cost 7,032 7,562 - -
Unrecognized net gain (181,822) (161,824) (11,099) (9,707)
Accrued benefit cost $(12,356) $ (24,746) $ - $ -
The following actuarial assumptions were used in calculating the plans'
year-end funded status:
At December 31,
Pension Benefits Postretirement Benefits
1998 1997 1998 1997
Discount rate 7.00% 7.25% 7.00% 7.25%
Compensation/progression rate 4.25% 4.25% 4.25% 4.25%
Health care cost trend rate (a) N/A N/A 5.22% 5.76%
(a) The annual growth in per capita cost of covered health care benefits
was assumed to decrease to 4.40 percent by 2001.
The components of net periodic benefit cost are:
For the Years Ended December 31,
Pension Benefits Postretirement Benefits
1998 1997 1998 1997
(Thousands of Dollars)
Service cost $ 9,787 $ 10,729 $ 1,638 $ 1,657
Interest cost 24,009 26,358 3,986 4,118
Expected return on plan assets (38,873) (35,796) (2,265) (1,797)
Amortization of unrecognized
transition (asset)/obligation (606) (606) 2,533 2,533
Amortization of prior service cost 530 530 - -
Amortization of actuarial gain (7,237) (4,777) - -
Other amortization, net - - (774) (1,038)
Curtailments and settlements - (332) - -
Net periodic benefit (credit)/cost $(12,390) $ (3,894) $ 5,118 $ 5,473
For calculating pension and postretirement benefit costs, the following
assumptions were used:
For the Years Ended December 31,
Pension Benefits Postretirement Benefits
1998 1997 1998 1997
Discount rate 7.25% 7.75% 7.25% 7.75%
Expected long-term rate of return 9.50% 9.25% - -
Compensation/ progression rate 4.25% 4.75% 4.25% 4.75%
Long-term rate of return-
Health assets, net of tax N/A N/A 7.75% 7.50%
Life assets N/A N/A 9.50% 9.25%
Assumed health care cost trend rates have a significant effect on the amounts
reported for the health care plans. The effect of changing the assumed
health care cost trend rate by one percentage point in each year would have
the following effects:
One Percentage One Percentage
(Thousands of Dollars) Point Increase Point Decrease
Effect on total service and
interest cost components $ 230 $ (250)
Effect on postretirement
benefit obligation 2,656 (2,803)
The trust holding the health plan assets is subject to federal income taxes at
a 39.6 percent tax rate.
5. COMMITMENTS AND CONTINGENCIES
Construction Program
The construction program is subject to periodic review and revision by
management. NUSCO currently forecasts construction expenditures of
approximately $85.3 million for the years 1999-2003, including approximately
$16.0 million for 1999.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
FOR THE YEAR ENDED DECEMBER 31, 1998
SCHEDULE XV
COMPARATIVE INCOME STATEMENT
- --------------------------------------------------------------------------------------
ACCOUNT DESCRIPTION 1998 1997
- --------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
INCOME
------
457 Services rendered to associate companies $282,964 $333,249
458 Services rendered to nonassociate companies 10,344 33,135
421 Miscellaneous income or loss 579 314
------------ -----------
Total Income 293,887 366,698
------------ -----------
EXPENSE
-------
920 Salaries and wages 152,988 169,225
921 Office supplies and expenses 36,104 44,404
922 Administrative expense transferred-credit - -
923 Outside services employed 34,347 75,015
924 Property insurance 1 30
925 Injuries and damages 1,134 845
926 Employee pensions and benefits 13,124 22,322
928 Regulatory commission expense 209 235
930.1 General advertising expenses - -
930.2 Miscellaneous general expenses 2,996 2,017
931 Rents 16,424 22,851
932 Maintenance of structures and equipment 1,464 1,515
403 Depreciation and amortization expense 10,676 12,212
408 Taxes other than income taxes 12,582 12,436
409 Income taxes (2,453) 856
410 Provision for deferred income taxes 7,709 3,587
411 Provision for deferred income taxes-credit (5,431) (4,853)
411.5 Investment tax credit - -
426.1 Donations 302 327
426.5 Other deductions 11,711 3,669
427 Interest on long-term debt - -
430 Interest on debt to associate companies - -
431 Other interest expense - 5
------------ -----------
Total Expense 293,887 366,698
------------ -----------
Net Income or (Loss) $0 $0
============ ===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1998
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 $5,731 $215 $- $5,946
The Connecticut Light and
Power Company 104,700 13,089 - 117,789
Public Service Company of New
Hampshire 27,709 3,037 - 30,746
North Atlantic Energy
Corporation 247 4 - 251
Western Massachusetts
Electric Company 26,693 2,944 - 29,637
Holyoke Water Power Company 2,129 268 - 2,397
Holyoke Power and Electric
Company 12 1 - 13
Northeast Nuclear Energy Company 64,826 7,855 - 72,681
North Atlantic Energy Service
Corporation 6,934 786 - 7,720
The Quinnehtuk Company 44 9 - 53
The Rocky River Realty Company 462 6 - 468
Properties Inc. 1 - - 1
Charter Oak Energy Incorporated 1,110 48 - 1,158
COE Avenue Fenix Corporation 19 1 - 20
COE Development Corporation (10) 3 - (7)
COE Tejona Corp. 47 6 - 53
Mode 1 Communications, Inc. 148 16 - 164
Select Energy, Inc. 11,766 2,060 - 13,826
HEC Inc. 47 1 - 48
---------- ---------- ----------- ----------
TOTAL $252,615 $30,349 $- $282,964
========== ========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1998
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) $ 4,456 $ 787 $ - $ 5,243 $ - $ 5,243
Connecticut Valley Electric
Exchange (1) 3,814 45 - 3,859 3,859
New England Power Exchange (1) 964 2 - 966 966
New England Power Planning
Committee (1) 185 - - 185 185
New England Power Pool (1) 13 1 - 14 14
Yankee Gas Services Company (1) (1) (1) - (2) (2)
---------------------------------------------------------
9,431 834 - 10,265 - 10,265
---------------------------------------------------------
Other miscellaneous revenues: (2)
Southern New England Telephone Co. 41 - - 41 41
Miscellenous (15 companies) 38 - - 38 38
---------------------------------------------------------
79 - - 79 - 79
---------------------------------------------------------
TOTAL $ 9,510 $ 834 $ - $10,344 $ - $10,344
=========================================================
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>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1998
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
- -----------------------------------------------------------------------------------------------------
ASSOCIATE COMPANY CHARGES NONASSOCIATE COMPANY CHARGES
------------------------- ----------------------------
ACCOUNT DIRECT INDIRECT DIRECT INDIRECT
NUMBER DESCRIPTION OF ITEMS COST COST TOTAL COST COST TOTAL
- ------------------------------------------------------------------------ ----------------------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES 146,395 2,420 148,815 4,101 72 4,173
921 OFFICE SUPPLIES AND EXPENSES 27,247 7,547 34,794 1,102 208 1,310
922 ADMINISTRATIVE EXPENSE TRANSFERRED-
CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 31,427 2,037 33,464 828 55 883
924 PROPERTY INSURANCE 0 1 1 0 0 0
925 INJURIES AND DAMAGES 1,114 0 1,114 20 0 20
926 EMPLOYEE PENSIONS AND BENEFITS 12,757 0 12,757 367 0 367
928 REGULATORY COMMISSION EXPENSE 209 0 209 0 0 0
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 2,756 241 2,997 2 (3) (1)
931 RENTS 6,218 7,970 14,188 2,017 219 2,236
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 992 428 1,420 30 14 44
403 DEPRECIATION AND AMORTIZATION EXPENSE 0 10,389 10,389 0 287 287
408 TAXES OTHER THAN INCOME TAXES 12,132 0 12,132 450 0 450
409 INCOME TAXES (2,461) 0 (2,461) 8 0 8
410 PROVISION FOR DEFERRED INCOME TAXES 7,709 0 7,709 0 0 0
411 PROVISION FOR DEFERRED INCOME TAXES -
CREDIT (5,431) 0 (5,431) 0 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0 0 0 0
426.1 DONATIONS 302 0 302 0 0 0
426.5 OTHER DEDUCTIONS 11,125 3 11,128 583 0 583
427 INTEREST ON LONG-TERM DEBT 0 0 0 0 0 0
431 OTHER INTEREST EXPENSE 0 0 0 0 0 0
------------------------------------------------------
SUBTOTAL EXPENSES = 252,491 31,036 283,527 9,508 852 10,360
COMPENSATION FOR USE OF EQUITY CAPITAL=
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES= 0 0
431 OTHER INTEREST EXPENSE= 0 0
---------- -----------
TOTAL EXPENSES = 283,527 10,360
421 MISCELLANEOUS INCOME - CREDIT 124 (687) (563) 2 (18) (16)
------------------------------------------------------
TOTAL COST OF SERVICE = 252,615 30,349 282,964 9,510 834 10,344
======================================================
</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 150,496 2,492 152,988
921 OFFICE SUPPLIES AND EXPENSES 28,349 7,755 36,104
922 ADMINISTRATIVE EXPENSE TRANSFERRED-
CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 32,255 2,092 34,347
924 PROPERTY INSURANCE 0 1 1
925 INJURIES AND DAMAGES 1,134 0 1,134
926 EMPLOYEE PENSIONS AND BENEFITS 13,124 0 13,124
928 REGULATORY COMMISSION EXPENSE 209 0 209
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 2,758 238 2,996
931 RENTS 8,235 8,189 16,424
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 1,022 442 1,464
403 DEPRECIATION AND AMORTIZATION EXPENSE 0 10,676 10,676
408 TAXES OTHER THAN INCOME TAXES 12,582 0 12,582
409 INCOME TAXES (2,453) 0 (2,453)
410 PROVISION FOR DEFERRED INCOME TAXES 7,709 0 7,709
411 PROVISION FOR DEFERRED INCOME TAXES -
CREDIT (5,431) 0 (5,431)
411.5 INVESTMENT TAX CREDIT 0 0 0
426.1 DONATIONS 302 0 302
426.5 OTHER DEDUCTIONS 11,708 3 11,711
427 INTEREST ON LONG-TERM DEBT 0 0 0
431 OTHER INTEREST EXPENSE 0 0 0
---------------------------------
SUBTOTAL EXPENSES = 261,999 31,888 293,887
COMPENSATION FOR USE OF EQUITY CAPITAL=
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES= 0
431 OTHER INTEREST EXPENSE= 0
-----------
TOTAL EXPENSES = 293,887
421 MISCELLANEOUS INCOME - CREDIT 126 (705) (579)
---------------------------------
TOTAL COST OF SERVICE = 262,125 31,183 293,308
=================================
</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, 1998
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 152,988 2,492 867 29,314 3,214 687
921 OFFICE SUPPLIES AND EXPENSES 36,104 7,755 198 4,186 325 78
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 34,347 2,092 451 3,407 249 580
924 PROPERTY INSURANCE 1 1 0 0 0 0
925 INJURIES AND DAMAGES 1,134 0 0 0 0 0
926 EMPLOYEE PENSIONS AND BENEFITS 13,124 0 1,308 1,137 5 0
928 REGULATORY COMMISSION EXPENSE 209 0 0 0 0 0
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 2,996 238 3 (138) (76) 3
931 RENTS 16,424 8,189 0 151 0 0
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 1,464 442 0 6 0 0
403 DEPRECIATION AND AMORTIZATION EXPENSE 10,676 10,676 0 0 0 0
408 TAXES OTHER THAN INCOME TAXES 12,582 0 0 0 0 0
409 INCOME TAXES (2,453) 0 0 0 0 0
410 PROVISION FOR DEFERRED INCOME TAXES 7,709 0 0 0 0 0
411 PROVISION FOR DEFERRED INCOME TAXES - CREDIT (5,431) 0 0 0 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0 0 0 0
426.1 DONATIONS 302 0 0 0 0 0
426.5 OTHER DEDUCTIONS 11,711 3 2,353 580 2,666 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 = 293,887 31,888 5,180 38,643 6,383 1,348
================================================
</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, 1998
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 9,045 6,579 3,886 10,188 4,930 2,770
921 OFFICE SUPPLIES AND EXPENSES 644 132 391 891 1,580 251
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 1,192 280 316 (3,550) 277 28
924 PROPERTY INSURANCE 0 0 0 0 0 0
925 INJURIES AND DAMAGES 0 6 0 0 0 0
926 EMPLOYEE PENSIONS AND BENEFITS 0 1 (10,309) 0 6 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 48 (57) 224 724 2 494
931 RENTS 0 0 0 24 4 0
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 0 0 0 0 9 0
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 0 0
426.5 OTHER DEDUCTIONS 0 0 0 0 0 894
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 = 10,929 6,941 (5,492) 8,277 6,808 4,437
================================================
</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, 1998
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 19,331 11,669 3,402 2,993 14,825 6,609
921 OFFICE SUPPLIES AND EXPENSES 851 4,425 1,357 10 9,471 1,017
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 2,724 6,767 3,399 133 9,192 2,096
924 PROPERTY INSURANCE 0 0 0 0 0 0
925 INJURIES AND DAMAGES 0 31 0 0 0 0
926 EMPLOYEE PENSIONS AND BENEFITS 4 2 0 0 5 20,735
928 REGULATORY COMMISSION EXPENSE 5 0 0 0 0 0
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 182 (8) 482 22 287 121
931 RENTS 615 68 1 0 5,817 324
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 6 0 0 0 710 0
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 0 296 0 0 0 0
426.5 OTHER DEDUCTIONS 0 103 26 591 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 = 23,718 23,353 8,667 3,749 40,307 30,902
================================================
</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, 1998
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
- ----------------------------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
ACCOUNT ------------------------------------------------
NUMBER DESCRIPTION OF ITEMS (17) (18) (19) (20) (21) (22)
- ----------------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES 3,542 1,915 3,592 4,954 669 2,209
921 OFFICE SUPPLIES AND EXPENSES 227 94 1,201 498 168 98
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 978 113 922 1,573 1 966
924 PROPERTY INSURANCE 0 0 0 0 0 0
925 INJURIES AND DAMAGES 2 0 1,087 17 0 0
926 EMPLOYEE PENSIONS AND BENEFITS 0 0 126 14 0 90
928 REGULATORY COMMISSION EXPENSE 0 0 204 0 0 0
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 24 0 0 (144) 22 543
931 RENTS (3) 0 0 0 15 49
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 0 0 0 291 0 0
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 6 0 0
426.5 OTHER DEDUCTIONS 0 0 0 0 1,239 3,256
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 = 4,770 2,122 7,132 7,209 2,114 7,211
================================================
</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, 1998
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
- ----------------------------------------------------------------------------
ACCOUNT ------------------------
NUMBER DESCRIPTION OF ITEMS (23) (24) (25)
- ----------------------------------------------------------------------------
<S> <C> <C> <C>
920 SALARIES AND WAGES 3,296 10 0
921 OFFICE SUPPLIES AND EXPENSES 296 (40) 0
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 144 17 0
924 PROPERTY INSURANCE 0 0 0
925 INJURIES AND DAMAGES 0 (9) (0)
926 EMPLOYEE PENSIONS AND BENEFITS 0 0 0
928 REGULATORY COMMISSION EXPENSE 0 0 0
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 0 0 0
931 RENTS 0 1,170 0
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 0 0 0
403 DEPRECIATION AND AMORTIZATION EXPENSE 0 0 0
408 TAXES OTHER THAN INCOME TAXES 0 0 12,582
409 INCOME TAXES 0 0 (2,453)
410 PROVISION FOR DEFERRED INCOME TAXES 0 0 7,709
411 PROVISION FOR DEFERRED INCOME TAXES - CREDIT 0 0 (5,431)
411.5 INVESTMENT TAX CREDIT 0 0 0
426.1 DONATIONS 0 0 0
426.5 OTHER DEDUCTIONS 0 0 0
427 INTEREST ON LONG-TERM DEBT 0 0 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0 0 0
431 OTHER INTEREST EXPENSE 0 0 0
------------------------
TOTAL EXPENSES = 3,736 1,148 12,407
========================
</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, 1998
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) Senior V.P.-Strategy & Development
(5) V.P. - Wholesale Marketing
(6) V.P. and Controller
(7) V.P. and Treasurer
(8) V.P. - Energy Services
(9) V.P. Fossil and Hydro
(10) President - Retail Business Group
(11) V.P. - Energy Delivery
(12) Director - Customer Service
(13) Director - Customer Support
(14) V.P. - Administration
(15) V.P. and Chief Information Officer
(16) V.P. - Human Resources & General Services
(17) Director - Purchasing and Contracts
(18) Director - Internal Audit and Security
(19) Senior V.P.,Secretary and General Counsel
(20) V.P. - Environmental Safety & Ethics
(21) V.P. - Governmental Affairs
(22) V.P. - Corporate Communication
(23) V.P. - Rates, Regulatory Affairs & Compliance
(24) New England Power Pool
(25) Corporate Expenses - unallocated
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1998
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 $867 $55 $796 $16 3
President- Nuclear Group 29,314 0 28,724 590 367
Executive V.P. and Chief
Financial Officer 3,214 66 3,128 20 17
Senior V.P.-Strategy & Development 687 77 610 0 10
V.P. - Wholesale Marketing 9,045 205 8,836 4 96
V.P. and Controller (1) 6,581 12 6,397 172 135
V.P. and Treasurer 3,886 46 3,758 82 81
V.P. - Energy Services (2) 10,194 0 10,189 5 103
V.P. - Fossil and Hydro 4,930 202 4,717 11 74
President - Retail Business Group (3) 2,773 5 2,765 3 22
V.P. - Energy Delivery (4) 19,374 0 17,324 2,050 262
Director - Customer Service (5) 11,691 0 11,687 4 187
Director - Customer Support 3,402 0 3,401 1 47
V.P. - Administration 2,993 57 2,932 4 3
V.P. and Chief Information Officer (6) 15,342 152 14,567 623 438
V.P. - Human Resources and General
Services (7) 8,508 15 8,323 170 146
Director - Purchasing and Contracts 3,542 0 3,383 159 57
Director - Internal Audit and Security 1,915 4 1,862 49 34
Senior V.P., Secretary and
General Counsel 3,592 369 3,189 34 54
V.P.- Environmental Safety & Ethics 4,954 25 4,838 91 80
V.P.- Governmental Affairs 669 0 658 11 8
V.P. - Corporate Communication 2,209 54 2,082 73 42
V.P. - Rates, Regulatory Affairs &
Compliance 3,296 0 3,295 1 50
New England Power Pool 10 0 10 0 0
-------------------------------------- ---------
$152,988 $1,344 $147,471 $4,173 2,316
====================================== =========
(1) Total amount includes $2,000 of payroll overhead.
(2) Total amount includes $6,000 of payroll overhead.
(3) Total amount includes $3,000 of payroll overhead.
(4) Total amount includes $43,000 of payroll overhead.
(5) Total amount includes $22,000 of payroll overhead.
(6) Total amount includes $517,000 of payroll overhead.
(7) Total amount includes $1,899,000 of payroll overhead.
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1998
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> <C>
AUDITING SERVICES
- -----------------
ARTHUR ANDERSON NA $55
-----------
TOTAL AUDITING SERVICES 55
===========
ADVERTISING SERVICES
- --------------------
BSA ADVERTISING INC NA 158
MISCELLANEOUS (6 PAYEES) NA 43
-----------
TOTAL ADVERTISING SERVICES 201
===========
COLLECTION SERVICES
- -------------------
CREDIT BUREAU COLLECTIONS NA 122
FINANCIAL COLLECTION AGENCIES NA 160
MISCELLANEOUS (9 PAYEES) NA 234
-----------
TOTAL COLLECTION SERVICES 516
===========
COMPUTER SERVICES
- -----------------
COMPLETE BUSINESS SOLUTIONS NA 1,966
DUN & BRADSTREET NA 140
IBM NA 1,546
PITNEY BOWES INC NA 122
PRIDE TECHNOLOGIES INC NA 229
MISCELLANEOUS (39 PAYEES) NA 698
-----------
TOTAL COMPUTER SERVICES 4,701
===========
ENGINEERING SERVICES
- --------------------
C W COSTELLO & ASSOCIATES INC NA 222
CATARACT INC NA 137
COMPLETE BUSINESS SOLUTIONS NA 144
DIGITAL EQUIPMENT CORP NA 109
H & P INC NA 171
HIGH TECH CONSULTANTS NA 227
INTANDEM TECHNOLOGY INC NA 114
INTEGRATED DOCUMENT MANAGEMENT NA 163
INVESTCONSULT INC NA 194
KEANE INC NA 104
MARTIN-SIGMON CONSULTING NA 176
MEGAN CORP NA 139
PREMIER DATA SERVICES INC NA 216
RESOURCE MANAGEMENT INT INC NA 116
TECHNICAL AID CORP NA 348
W D ASSOCIATES INC NA 103
WILTEL COMMUNICATIONS SYSTEMS NA 442
YANKEE ATOMIC ELECTRIC CO NA 297
MISCELLANEOUS (104 PAYEES) NA 1,424
-----------
TOTAL ENGINEERING SERVICES 4,846
===========
LEGAL SERVICES
- --------------
DAY BERRY & HOWARD NA 802
MISCELLANEOUS (22 PAYEES) NA 190
-----------
TOTAL LEGAL SERVICES 992
===========
PRINTING SERVICES
- -----------------
ALLIED PRINTING SERVICES INC NA 403
MISCELLANEOUS (2 PAYEES) NA 85
-----------
TOTAL PRINTING SERVICES 488
===========
TEMPORARY EMPLOYMENT SERVICES
- ------------------------------
MANPOWER INC NA 1,690
NUCON ENGINEERING ASSOC INC NA 1,527
-----------
TOTAL TEMPORARY EMPLOYMENT SERVICES 3,217
===========
OTHER SERVICES
- --------------
ADDISON DESIGN CO NA 107
ADEPT INC NA 1,331
ADM ASSOCIATES INC NA 179
AIR DENVER INC NA 123
ANDERSEN CONSULTING NA 116
ATLANTIC TELECOM INC NA 129
BERNARD M FOX NA 443
C W COSTELLO & ASSOCIATES INC NA 1,894
CAMBRIDGE ENERGY RESEARCH NA 183
CATARACT INC NA 308
CONTINENTAL SERVICES GROUP INC NA 207
COOPERS & LYBRAND NA 276
CREDIT CENTER INC NA 130
CT HOUSING INVESTMENT FUND NA 1,616
DATA MAIL INC NA 199
DELOITTE & TOUCHE NA 547
ENTOR CORP NA 135
EQUIFAX CREDIT INFOR SERVICES NA 173
ETP INC NA 112
FIRST DATA CORP NA 169
HEWITT ASSOCIATES NA 174
M & I DATA SERVICES NA 162
MARTINEZ & ASSOCIATES NA 103
MEGAN CORP NA 162
METACORP STRATAGIES, INC NA 121
METCALF & EDDY NA 144
MICROAGE INFOSYSTEMS SERVICE NA 103
MILLETTE ASSOCIATES NA 143
NANCY J KIRBY NA 169
OPTIMUM STAFFING WORKSTIES INC NA 175
PARAMOUNT SYSTEMS INC NA 408
PRO FITNESS NA 639
RLW ANALYTICAL INC NA 865
ROTHSCHILD INC NA 249
RUMLA, INC NA 172
SECORE NA 104
SG BARR DEVLIN & ASSOCIATES NA 164
SIMSTAR INTERNATIONAL NA 129
SPECTRUM ASSOC NA 247
STAYWELL HEALTH MANAGEMENT NA 133
TECHNICAL AID CORP NA 128
TESSERACT CORP NA 122
THE INDUS GROUP INC NA 1,588
THE WINN COMPANY NA 160
TOWERS PERRIN NA 357
UNICCO SECURITY SERVICES NA 553
UNIVERSITY OF CONNECTICUT NA 135
US DELIVERY NEW ENGLAND NA 123
W D ASSOCIATES INC NA 241
WHITESTONE ASSOC NA 140
WILTEL COMMUNICATION SYSTEMS NA 310
XCALIBER CONSULTING GROUP NA 158
MISCELLANEOUS (707 PAYEES) NA 2,373
-----------
TOTAL OTHER SERVICES 19,331
-----------
$34,347
===========
For the Year Ended December 31, 1998
OUTSIDE SERVICES EMPLOYED
VENDOR NAME DESCRIPTION OF SERVICES RENDERED
- --------------------------------------------------------------------------------------------------------
AUDITING SERVICES
- -----------------
ARTHUR ANDERSON Provide audit services to NU Companies
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
- -----------------
COMPLETE BUSINESS SOLUTIONS Consulting Services for Y2K issue relating to Millstone
DUNN & BRADSTREET Annual Software License and Support; Reporting
IBM Maintenance and on-site repairs of equipment for Connecticut
locations
PITNEY BOWES INC Maintenance and on-site repairs
PRIDE TECHNOLOGIES INC Provide technicians services for I96 Pathfinder Phase;
Desktop Maintenance
ENGINEERING SERVICES
- --------------------
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
COMPLETE BUSINESS SOLUTIONS Provide consultant services for support of SYBASE DBA Activities
DIGITAL EQUIPMENT CORP Provide consulting services for Wethersfield location
H & P INC Furnish assessment services relative to Nuclear Oversight
HIGH TECH CONSULTANTS Support for DB2 Administration
INTERGRATED DOCUMENT MANAGEMENT Provide EDMS consulting support for Northeast Utilities
INTANDEM TECHNOLOGY INC Provide ADABAS database support
INVESTCONSULT INC Provide consulting services to support Human Resource Dept. at
Millstone
KEANE INC Provide software support and services for RMG Marketing
Information System
MARTIN-SIGMON CONSULTING Provide consulting services relative to Nuclear Oversight
MEGAN CORP Provide analysis, development and implementation of training for
OTB 2
PREMIER DATA SERVICES INC Services to Support the INDUS Passport Infrastructure Project
RESOURCE MANAGEMENT INT INC Furnish professional personnel to support marketing and conservation
programs and evaluations
TECHNICAL AID CORP Furnish professional and clerical personnel to support Marketing
and Conservation Programs
W D ASSOCIATES INC Provide consulting services for development of an adminstrative
manual for the station administrative group at Millstone
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
- --------------
DAY BERRY & HOWARD Provide Legal Services on an as Requested Basis
PRINTING SERVICES
- -----------------
ALLIED PRINTING SERVICES INC Printing Consumer News and Special Bill Inserts
TEMPORARY EMPLOYMENT SERVICES
- ------------------------------
MANPOWER INC Temporary Labor Services
NUCON ENGINEERING ASSOC INC Furnish Services for NUSCO Retiree Skill Bank
OTHER SERVICES
- --------------
ADDISON DESIGN CO Furnish Labor and Materials to Design Northeast Utilities
Environmental Report
ADEPT INC Provide services for EDS Project and TCIAS2
AIR DENVER INC Provided chartered flights for NU employees to and from Puerto Rico
during disaster relief program
ANDERSEN CONSULTING Provide Tax work services for NU and subs
ATLANTIC TELECOM INC Provide Labor and Material for Voice and Data communication
connection services
BERNARD M FOX Provide consulting services as requested by Board of Trustees
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
CATARACT INC Furnish services to provide procedure writing for NDS
CONTINENTAL SERVICES GROUP INC To provide MIMS field support and testing
COOPERS & LYBRAND LLP Provide consulting services for NU Strategic Environmental Project
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 consulting services to assist NUSCO in its selection of an
integrated Energy Transaction and Risk Management System
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
FIRST DATA CORP Automated Electronic Payment Agent Management Services to CL&P and
WMECO
HEWITT ASSOCIATES Consulting services for ESCO Compensation & Benefits Study;
RBG Exempt Compensation Study; Actuarial services for NUSCO Benefits
M & I DATA SERVICES Provide consulting services to support third pary billing
MARTINEZ & ASSOCIATES Provide consulting services to support computer programming
MEGAN CORP Provide training and instruction for contractors; support licensing
programs at MP2 Operator Training Department
METACORP STRATAGIES, INC Furnish services to support Joint Investigation System
METCALF & EDDY Provide environmental site evaluations for WMECO
MICROAGE INFOSYSTEMS SERVICE Furnish services to support Desktop maintenance effort and PC
development
MILLETTE ASSOCIATES Provide onsite physician services to NU
NANCY J KIRBY Provide services for various training and assessment assignments
OPTIMUM STAFFING WORKSITES INC Furnish professional nursing and EMT services at Berlin Health Unit
PARAMOUNT SYSTEMS INC MIMS, NUTIMS and Millennium Project Support
PRO FITNESS Furnish consulting services to develop the Health Enhancement Program
RLW ANALYTICAL INC Services to Determine Net Energy and Demand Impacts of Energy
Action Program; Impact Evaluation of NUSCO's Multifamily Program
ROTHSCHILD INC Provide consulting services to support Regulatory Filings with the
State of New Hampshire
RUMLA, INC Furnish consulting services to support WMECO's Standard Offer and
Default Energy Services required as part of the Restructuring Effort
SECORE Furnish services to support Millennium Project
SG BARR DVLIN & ASSOCIATES Furnish consulting services to support the current and future needs
of merger and acquistion projects for NU
SIMSTAR INTERNATIONAL Furnish computer software services
SPECTRUM ASSOC Furnish services to perform Customer Center Telephone Survey
STAYWELL HEALTH MANAGEMENT Provide services to support Wellaware Program
TECHNICAL AID CORP Furnish Professional and Clerical Personnel to Support Marketing
and Conservation Programs
TESSERACT CORP Furnish services to support software maintenance
THE INDUS GROUP INC Provide support to LAN and workstations; Passport application
development and Code Generation workbench support
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
UNIVERSITY OF CONNECTICUT Furnish services to assist in the development of software to project
future energy prices
US DELIVERY NEW ENGLAND Furnish courier services
W D ASSOCIATES INC Provide consulting services for development of an adminstrative
manual for the station administrative group at Millstone
WHITESTONE ASSOC Provide financial advisory services
WILTEL COMMUNICATION SYSTEMS Provide maintenance of telephone system at Merrimack and Berlin
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, 1998
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 ($9,709)
Supplemental Retirement and Savings Plan 6,607
Group Life, Long-term Disability, Hospital
and Medical Insurance Expenses 10,770
Post retirement medical benefit - FAS 106 5,118
Other Employee Benefits Expenses 338
---------
TOTAL $13,124
=========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1998
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, 1998
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>
Economic development 1,204
Information technology $ 519
Membership Dues 492
Shareholder reports and meetings 353
Northeast Power Coordinating Council 179
Closing fees - revolving credit facility 89
New York Stock Exchange - annual listing fee 75
Other miscellaneous expenses (103 items) 85
------------
TOTAL $ 2,996
============
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1998
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 $6,932
Computer/Office equipment 9,203
Vehicles 289
---------
TOTAL $16,424
=========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1998
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 $976
Massachusetts Unemployment 6
Local property 1,087
Connecticut Corporation Business Tax (363)
Connecticut Sales Tax 55
Other 8
---------
Sub-Total 1,769
---------
(2) U.S. Government Taxes:
Federal Insurance Contribution Act 8,334
Medicare Tax 2,335
Federal Unemployment 144
---------
Sub-Total 10,813
---------
TOTAL $12,582
=========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1998
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 $47
AMERICAN LITHOGRAPHY CORP CHARITABLE CONTRIBUTION 16
CAMBRIDGE REPORTS RES INTL CHARITABLE CONTRIBUTION 15
RENSSELAER POLYTECHNIC INSTITUTE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 15
ST JOSEPH COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 15
UNIVERSITY OF MASSACHUSETTS CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 13
UNITED WAY CHARITABLE CONTRIBUTION 10
BUSHNELL MEMORIAL CHARITABLE CONTRIBUTION 9
EDUCATIONAL PUBLISHING GROUP CHARITABLE CONTRIBUTION 9
THE E R HITCHCOCK COMPANY INC CHARITABLE CONTRIBUTION 8
SCIENCE CENTER OF CONNECTICUT CHARITABLE CONTRIBUTION 7
NAUGATUCK VALLEY COMMUNITY CHARITABLE CONTRIBUTION 7
BARKER SPECIALITY CHARITABLE CONTRIBUTION 5
HOW 2 DESIGN CHARITABLE CONTRIBUTION 5
CAPITAL COMMUNITY TECHNICAL COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 5
FRANKLIN PIERCE COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 5
NORWALK COMMUNITY TECHNICAL CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 5
SEA RESEARCH FOUNDATION INC CHARITABLE CONTRIBUTION 5
WESLEYAN UNIVERSITY CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 5
MARTIN FOTO & ART CHARITABLE CONTRIBUTION 5
WVIT CHANNEL 30 CHARITABLE CONTRIBUTION 5
BENTLEY COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 4
BRYANT COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 4
CENTRAL CONNECTICUT STATE UNIVERSITY CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 4
URBAN LEAGUE OF GREATER CHARITABLE CONTRIBUTION 4
DEC RESEARCH CHARITABLE CONTRIBUTION 3
MOUNT HOLYOKE COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 3
SPRINGFIELD TECHNICAL CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 3
UNIVERSITY OF HARTFORD CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 3
MISCELLANEOUS (52 PAYEES) CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 58
-----------
TOTAL $302
===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1998
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 $7,243
Government relation
expenditures Black Kelly Scruggs & Healey 139
Gaffney, Bennett and Associates, Inc. 106
Issues Management Group 139
Updike Kelly & Spellacy, PC 117
Tyler Cooper & Alcorn 107
Miscellaneous (87 items) 321
Communication services Cronin & Company 3,237
Edison Electric Institute 162
Miscellaneous (27 items) 5
Contributions Miscellaneous (74 items) 132
Other Miscellaneous (2 items) 3
--------
TOTAL $11,711
========
</TABLE>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1998
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 19E.
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
ORGANIZATION CHART (AS OF DECEMBER 31, 1998)
Chairman, President and Chief Executive Officer
- President and Chief Executive Officer - Nuclear Group
- President - Retail Business Group
- Vice President - Energy Delivery
- Director - Customer Service
- Director - Customer Support
- Executive Vice President and Chief Financial Officer
- Senior Vice President - Strategy and Development
- Vice President - Wholesale Marketing
- Vice President and Treasurer
- Vice President and Controller
- Vice President - Energy Services
- Vice President - Fossil and Hydro
- Senior Vice President, Secretary and General Counsel
- Vice President - Environmental Safety and Ethics
- Vice President - Administration
- Vice President and Chief Information Officer
- Vice President - Human Resources and General Services
- Director - Purchasing and Contracts
- Director - Internal Audit and Security
- Vice President - Governmental Affairs
- Vice President - Corporate Communications
- Vice President - Rates, Regulatory Affairs and Compliance
NORTHEAST UTILITIES SERVICE COMPANY
-----------------------------------
METHODS OF ALLOCATION
---------------------
For the year ended December 31, 1998
------------------------------------
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
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 1998, 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, 1998
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: $ 20,811
=========
Expenses:
Purchased power 12,000
Purchased capacity 2,733
Transmission 238
Payroll 51
---------
$ 15,022
=========
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, 1999
<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-31-1998 DEC-31-1997
<PERIOD-END> DEC-31-1998 DEC-31-1997
<BOOK-VALUE> PER-BOOK PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 36,438 40,455
<TOTAL-INVESTMENTS> 4,859 4,155
<TOTAL-CURRENT-ASSETS> 201,999 281,976
<TOTAL-DEFERRED-DEBITS> 53,217 54,656
<OTHER-ASSETS-AND-DEBITS> 0 0
<TOTAL-ASSETS-AND-DEBITS> 296,513 381,242
<TOTAL-PROPRIETARY-CAPITAL> 1 1
<TOTAL-LONG-TERM-DEBT> 0 0
<NOTES-PAYABLE> 0 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 107,350 141,950
<OTHER-CURR-AND-ACCRUED-LIAB> 118,739 173,073
<TOTAL-DEFERRED-CREDITS> 70,423 66,218
<DEFERRED-INCOME-TAX> 0 0
<TOT-LIABIL-AND-PROPRIET-CAP> 296,513 381,242
<SERVICES-ASSOCIATE-COMPANIES> 282,964 333,249
<SERVICES-NON-ASSOCIATE-COMP> 10,344 33,135
<MISC-INCOME-OR-LOSS> 579 314
<TOTAL-INCOME> 293,887 366,698
<SALARIES-AND-WAGES> 152,988 169,225
<EMPLOYEE-PENSION-AND-BENEFIT> 13,124 22,322
<OTHER-EXPENSES> 127,775 175,151
<TOTAL-EXPENSES> 293,887 366,698
<NET-INCOME> 0 0
<TOTAL-EXPENSES-DIRECT-COST> 261,999 332,380
<TOTAL-EXPENSES-INDIRECT-COST> 31,888 34,318
<TOT-EXP-DIRECT-AND-INDIRECT> 293,887 366,698
<PERSONNEL-END-OF-YEAR> 2,316 2,479
</TABLE>
