Form U -13 - 60
Mutual and Subsidiary Service Companies
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1999 and Ending December 31, 1999
TO THE
U. S. SECURITIES AND EXCHANGE COMMISSION
OF
NORTHEAST UTILITIES SERVICE COMPANY
A Subsidiary Service Company
Date of Incorporation - September 3, 1965
State of Sovereign Power under which Incorporated or
Organized - Connecticut
Location of Principal Executive Offices of Reporting
Company - Selden Street, Berlin, CT 06037
Name, title, and address of officer to whom correspondence
concerning this report should be addressed:
John J. Roman, Vice President and Controller,
P.O. Box 270, Hartford, CT 06141-0270
Name of Principal Holding Company Whose Subsidiaries
are served by Reporting Company
NORTHEAST UTILITIES
INSTRUCTIONS FOR USE ON FORM U-13-60
1. TIME OF FILING
Rule 94 provides that on or before the first day of May in each calendar year,
each mutual service company and each subsidiary service company as to which the
Commission shall have made a favorable finding pursuant to Rule 88, and every
service company whose application for approval or declaration pursuant to
Rule 88 is pending shall file with the Commission an annual report on Form
U-13-60 and in accordance with the instructions for that form.
2. NUMBER OF COPIES
Each annual report shall be filed in duplicate. The company should prepare and
retain at least one extra copy for itself in case correspondence with reference
to the report becomes necessary.
3. PERIOD COVERED BY REPORT
The first report filed by any company shall cover the period from the date the
Uniform System of Accounts was required to be made effective as to that company
under Rules 82 and 93 to the end of that calendar year. Subsequent reports
should cover a calendar year.
4. REPORT FORMAT
Reports shall be submitted on the forms prepared by the Commission. If the
space provided on any sheet of such form is inadequate, additional sheets may
be inserted of the same size as a sheet of the form or folded to such size.
5. MONEY AMOUNTS DISPLAYED
All money amounts required to be shown in financial statements may be
expressed in whole dollars, in thousands of dollars or in hundred thousands
of dollars, as appropriate, and subject to provisions of Regulation S-X
(Section 210.3-0.1(b)).
6. DEFICITS DISPLAYED
Deficits and other like entries shall be indicated by the use of either
brackets or a parenthesis with corresponding reference in footnotes.
(Regulation S-X, (Section 210.3-0.1(c)).
7. MAJOR AMENDMENTS OR CORRECTIONS
Any company desiring to amend or correct a major omission or error in a report
after it has been filed with the Commission shall submit an amended report
including only those pages, schedules, and entries that are to be amended or
corrected. A cover letter shall be submitted requesting the Commission to
incorporate the amended report changes and shall be signed by a duly authorized
officer of the company.
8. DEFINITIONS
Definitions contained in Instruction 01-8 to the Uniform System of Accounts
for Mutual Service Companies and Subsidiary Service Companies, Public Utility
Holding Company Act of 1935, as amended February 2, 1979 shall be applicable
to words or terms used specifically within this Form U-13-60.
9. ORGANIZATION CHART
The service company shall submit with each annual report a copy of its current
organization chart.
10. METHODS OF ALLOCATION
The service company shall submit with each annual report a listing of the
currently effective methods of allocation being used by the service company
and on file with the Securities and Exchange Commission pursuant to the
Public Utility Holding Company Act of 1935.
11. ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
The service company shall submit with each annual report a copy of the annual
statement supplied to each associate company in support of the amount of
compensation for use in capital billed during the calendar year.
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
---------------------------------------------
Schedule or Page
Description of Schedules and Accounts Acct. No. No.
- ------------------------------------- ----------- ----
COMPARATIVE BALANCE SHEET Schedule I 4-5
SERVICE COMPANY PROPERTY Schedule II 6-7
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY Schedule III 8
INVESTMENTS Schedule IV 9
ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES Schedule V 10
FUEL STOCK EXPENSES UNDISTRIBUTED Schedule VI 11
STORES EXPENSE UNDISTRIBUTED Schedule VII 12
MISCELLANEOUS CURRENT AND ACCRUED ASSETS Schedule VIII 13
MISCELLANEOUS DEFERRED DEBITS Schedule IX 14
RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES Schedule X 15
PROPRIETARY CAPITAL Schedule XI 16
LONG-TERM DEBT Schedule XII 17
CURRENT AND ACCRUED LIABILTIES Schedule XIII 18
NOTES TO FINANCIAL STATEMENTS Schedule XIV 19
COMPARATIVE INCOME STATEMENT Schedule XV 20
ANALYSIS OF BILLING - ASSOCIATE COMPANIES Account 457 21
ANALYSIS OF BILLING - NONASSOCIATE COMPANIES Account 458 22
ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE
AND NONASSOCIATE COMPANIES Schedule XVI 23
SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE
FUNCTION Schedule XVII 24-25
DEPARTMENTAL ANALYSIS OF SALARIES Account 920 26
OUTSIDE SERVICES EMPLOYED Account 923 27
EMPLOYEE PENSIONS AND BENEFITS Account 926 28
GENERAL ADVERTISING EXPENSES Account 930.1 29
MISCELLANEOUS GENERAL EXPENSES Account 930.2 30
RENTS Account 931 31
TAXES OTHER THAN INCOME TAXES Account 408 32
DONATIONS Account 426.1 33
OTHER DEDUCTIONS Account 426.5 34
NOTES TO STATEMENT OF INCOME Schedule XVIII 35
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
--------------------------------------------
Page
Description of Reports or Statements No.
- ------------------------------------ ----
ORGANIZATION CHART 36
METHODS OF ALLOCATION 37
ANNUAL STATEMENT OF COMPENSATION FOR
USE OF CAPITAL BILLED 38
ELECTRIC POWER BROKERING AND MARKETING ACTIVITIES 38A
SIGNATURE PAGE 39
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the current and prior year.
- ----------------------------------------------------------------------------------------
ACCOUNT ASSETS AND OTHER DEBITS AS OF DECEMBER 31
- ----------------------------------------------------------------------------------------
1999 1998
(Thousands of Dollars)
<S> <C> <C>
SERVICE COMPANY PROPERTY
------------------------
101 Service company property (Schedule II) $107,395 $ 93,857
107 Construction work in progress (Schedule II) 4,889 5,871
----------- -----------
Total Property 112,284 99,728
----------- -----------
108 Less accumulated provision for depreciation and
amortization of service company property (Schedule III) 73,532 63,290
----------- -----------
Net Service Company Property 38,752 36,438
----------- -----------
INVESTMENTS
-----------
123 Investments in associate companies (Schedule IV) - -
124 Other investments (Schedule IV) 5,173 4,859
----------- -----------
Total Investments 5,173 4,859
----------- -----------
CURRENT AND ACCRUED ASSETS
--------------------------
131 Cash 11,972 10,363
134 Special deposits 3,644 22
135 Working funds 490 470
136 Temporary cash investments (Schedule IV) 51,000 53,500
141 Notes receivable - -
143 Accounts receivable 59,458 75,855
144 Accumulated provision of uncollectible accounts - -
146 Accounts receivable from associate companies (Schedule V) 86,407 58,543
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies 158 639
163 Stores expense undistributed (Schedule VII) - -
165 Prepayments 2,160 2,607
174 Miscellaneous current and accrued assets (Schedule VIII) - -
----------- -----------
Total Current and Accrued Assets 215,289 201,999
----------- -----------
DEFERRED DEBITS
---------------
181 Unamortized debt expense - -
184 Clearing accounts 75 18
186 Miscellaneous deferred debits (Schedule IX) 35,772 37,833
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes 7,984 15,366
----------- -----------
Total Deferred Debits 43,831 53,217
----------- -----------
TOTAL ASSETS AND OTHER DEBITS $303,045 $296,513
=========== ===========
</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
- ----------------------------------------------------------------------------------------
1999 1998
(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 56,700 78,739
233 Notes payable to associate companies (Schedule XIII) 109,200 107,350
234 Accounts payable to associate companies (Schedule XIII) 48,221 5,124
236 Taxes accrued (1,023) 3,987
237 Interest accrued - 2
238 Dividends declared - -
241 Tax collections payable (443) (470)
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 17,374 31,357
----------- -----------
Total Current and Accrued Liabilities 230,029 226,089
----------- -----------
DEFERRED CREDITS
----------------
253 Other deferred credits 73,015 70,423
255 Accumulated deferred investment tax credits - -
----------- -----------
Total Deferred Credits 73,015 70,423
----------- -----------
282 ACCUMULATED DEFERRED INCOME TAXES - -
--------------------------------- ----------- -----------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $303,045 $296,513
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1999
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 $ 4,393 $ 2,720 $ 7,113
304 LAND AND LAND RIGHTS
305 STRUCTURES AND IMPROVEMENTS
306 LEASEHOLD IMPROVEMENTS 1,019 1,019
307 EQUIPMENT (2) 70,017 10,444 ($19) 80,480
308 OFFICE FURNITURE AND EQUIPMENT 16,721 172 19 16,874
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT 5 9 14
310 AIRCRAFT AND AIRPORT EQUIPMENT
311 OTHER SERVICE COMPANY
PROPERTY (3) 1,702 341 148 1,895
---------- --------- ----------- ---------- ----------
SUB-TOTAL 93,857 13,686 148 0 107,395
---------- --------- ----------- ---------- ----------
107 CONSTRUCTION WORK IN
PROGRESS (4) 5,871 (982) 4,889
---------- --------- ----------- ---------- ----------
TOTAL $99,728 $12,704 $148 $0 $112,284
========== ========= =========== ========== ==========
- -------------------------------------------------------------------------------------------
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
</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 $ 3,573 $42,806
307NB Construction Equipment (33) 306
307NC Other Communication Equipment 5,948 32,290
307NL Research and Laboratory Equipment 937 4,866
307NM Microwave Equipment 10 192
307NP Printing and Stationery Equipment 9 20
----------- ----------
TOTAL $10,444 $80,480
=========== ==========
- -------------------------------------------------------------------------------------------
(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, 1999
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 $ 2,062 $ 879 $ 2,941
304 LAND AND LAND RIGHTS
305 STRUCTURES AND IMPROVEMENTS
306 LEASEHOLD IMPROVEMENTS 910 4 914
307 EQUIPMENT 44,213 9,108 53,321
308 OFFICE FURNITURE AND FIXTURES 15,124 272 15,396
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT 4 4
310 AIRCRAFT AND AIRPORT EQUIPMENT
311 OTHER SERVICE COMPANY
PROPERTY 977 127 $148 956
---------- --------- ----------- ---------- ----------
TOTAL $63,290 $10,390 $148 $0 $73,532
========== ========= =========== ========== ==========
- --------------------------------------------------------------------------------------------
(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, 1999
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) 4,859 5,173
---------- ----------
Total - ACCOUNT 124 4,859 5,173
---------- ----------
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
Fidelity Money Market Fund, due January 3, 2000 - 39,775
Provident Money Market Fund, due January 3, 2000 - 4,675
Goldman Sachs Money Market Fund, due January 3, 2000 - 6,550
Fidelity Money Market Fund, due January 4, 1999 12,850 -
Provident Money Market Fund, due January 4, 1999 16,200 -
Goldman Sachs Money Market Fund, due January 4, 1999 24,450 -
---------- ----------
Total - ACCOUNT 136 53,500 51,000
---------- ----------
GRAND TOTAL $58,359 $56,173
========== ==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1999
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable from each
associate company. Where the service company has provided accommodation or
convenience payments for associate companies, a separate listing of total
payments for each associate company by subaccount should be provided.
- ------------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- ------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
- ---------------------------------------------
Northeast Utilities $ 1,882 $ 1,170
The Connecticut Light and Power Company (13,917) 23,752
The Rocky River Realty Company 390 438
Holyoke Water Power Company 632 635
Holyoke Power and Electric Company (621) 0
Western Massachusetts Electric Company 2,821 5,200
Public Service Company of New Hampshire 3,501 12,406
North Atlantic Energy Corporation (41) (105)
North Atlantic Service Energy Corporation 1,767 2,288
The Quinnehtuk Company 40 23
Northeast Nuclear Energy Company 750 11,674
Charter Oak Energy, Inc. 9 3
COE Ave Fenix Corporation 21 11
Mode 1 Communications, Inc. 3 39
NU Enterprises, Inc. 0 29
Northeast Generation Company 0 492
Northeast Generation Services Company 0 1,407
Select Energy, Inc. 7,400 44,284
Select Portland Pipeline, Inc. 0 1
HEC Inc. 56 168
------ --------
4,693 103,915
------ --------
NOTES RECEIVABLE (MONEY POOL) FROM ASSOCIATE COMPANIES
- -------------------------------------------------------
The Connecticut Light and Power Company 0 11,700
Northeast Nuclear Energy Company 0 5,500
The Rocky River Realty Company 16,050 23,600
The Quinnehtuk Company 5,900 3,600
Western Massachusetts Electric Company 30,900 9,400
Northeast Generation Services Company 0 900
HEC Inc. 1,000 3,500
------- --------
53,850 58,200
------- --------
ADVANCES FROM ASSOCIATE COMPANIES
- -------------------------------------------------------
The Connecticut Light and Power Company 0 (64,335)
Holyoke Water Power Company 0 (25)
Public Service Company of New Hampshire 0 751
Western Massachusetts Electric Company 0 (12,099)
------- --------
0 (75,708)
------- --------
$58,543 $ 86,407
======= ========
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, 1999
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES (CONTINUED)
INSTRUCTIONS: Complete the following schedule listing accounts receivable from each
associate company. Where the service company has provided accommodation or
convenience payments for associate companies, a separate listing of total
payments for each associate company by subaccount should be provided.
- ------------------------------------------------------------------------------------------
TOTAL
PAYMENTS
- ------------------------------------------------------------------------------------------
(Thousands
of Dollars)
<S> <C>
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
Northeast Utilities $ 5,763
The Connecticut Light and Power Company 90,539
Holyoke Water Power Company (2,074)
Holyoke Power and Electric Company (20,317)
Western Massachusetts Electric Company 43,664
Public Service Company of New Hampshire 84,797
Properties, Inc. 1
North Atlantic Energy Corporation 319
North Atlantic Service Energy Corporation 8,721
Northeast Nuclear Energy Company 49,427
Charter Oak Energy Incorporated 41
NU Enterprises, Inc. 14
Northeast Generation Company 6,125
Northeast Generation Services Company (1,978)
Select Energy, Inc. 554,928
Select Energy Portland Pipeline, Inc. 9,553
Mode 1 Communication, Inc. 35
The Quinnehtuk Company 45
The Rocky River Realty Company (6,071)
HEC Inc. 238
---------
TOTAL $ 823,770
=========
Convenience payments result primarily from the following items:
Net Power Exchange $ 27,688
Employee Pensions and Benefits 94,422
U.S. Department of Energy Fees 2,982
Legal Services 19,388
Nuclear Insurance 1,257
Non-Nuclear Insurance 17,253
Engineering Services 10,242
Communication Expenses 1,432
Payroll Deductions to Credit Unions 30,274
Temporary Personnel Services 3,007
Tree Trimming 26,829
Conservation Consulting 5,652
Computers Services 4,857
Fleet leasing 5,680
Fuel Purchases 518,731
Legal Settlement 3,352
Postage-customer billing 5,754
Financing Fees 9,513
Installation of LED Traffic Signals 1,074
DPUC Assessment 1,146
Miscellaneous (1,033 items) 33,237
--------
TOTAL $823,770
========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1999
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 $626 $44 $670
The above fuel stock expenses are billed
back to each of the associated companies
listed below:
The Connecticut Light and Power Company (334) (20) (354)
Public Service Company of New Hampshire (199) (20) (219)
Western Massachusetts Electric Company (13) (1) (14)
Holyoke Water Power Company (80) (3) (83)
------- ------- -------
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, 1999
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 $1,653 $105 $1,758
The above stores expenses are billed back
to each of the companies listed below:
The Connecticut Light and Power Company (875) (49) (924)
Public Service Company of New Hampshire (300) (15) (315)
Western Massachusetts Electric Company (153) (18) (171)
Holyoke Water Power Company (67) (3) (70)
Northeast Nuclear Energy Company (227) (17) (244)
North Atlantic Energy Service Corporation (22) (2) (24)
Select Energy, Inc. (9) (1) (10)
------- ------- -------
TOTAL $ 0 $ 0 $ 0
======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1999
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, 1999
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 $22,677 $21,369
Unfunded supplemental executive retirement plan 10,607 10,607
Unearned Stock Compensation 390 1,519
Agents account clearing 1,027 1,407
Employees performance payments 101 160
Receivable from VEBA trust for retiree's medical/life claims 2,038 4
Deposit for transmission services 720 720
Miscellaneous (25 items at beginning and 10 items at end of year) 273 (14)
------- -------
TOTAL $37,833 $35,772
======= =======
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1999
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
Wind Research $ 140
PV Energy Services 26
New Hampshire Wind Assessment 50
Fuel Forecasting 30
Fuel Cell Development Cancellation Refund (100)
Custom Designed Power Electronic Conversion and Control System 92
Groton Fuel Cell 7
Miscellaneous, Various Co-funding Project Cost, Etc. 290
The above expenses are billed back to each of the
associated companies listed below:
The Connecticut Light and Power Company (246)
Public Service Company of New Hampshire (73)
Western Massachusetts Electric Company (38)
Holyoke Water Power Company (5)
Northeast Atlantic Energy Service Company (43)
Northeast Nuclear Energy Company (110)
HEC Inc. (8)
Select Energy, Inc. (12)
-----
TOTAL $ 0
=====
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1999
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, 1999
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, 1999
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 $ 34,400 $ 15,300
The Connecticut Light and Power Company 6,600 0
North Atlantic Energy Corporation 30,350 56,400
Northeast Nuclear Energy Company 25,900 0
Holyoke Water Power Company 10,100 15,500
NU Enterprises, Inc. 0 100
Select Energy, Inc. 0 18,900
Mode 1 Communications, Inc. 0 3,000
-------- --------
TOTAL $107,350 $109,200
======== ========
- ---------------------------------------------------------------------------------------
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
Northeast Utilities $ 400 $ 555
The Connecticut Light and Power Company (1,460) 839
The Rocky River Realty Company 587 6,359
Public Service Company of New Hampshire 3,039 2,732
Western Massachusetts Electric Company 2,031 2,256
Northeast Nuclear Energy Company 540 32,781
North Atlantic Energy Service Company 5 2
Holyoke Power & Electric Company 0 2,581
Holyoke Water Power Company (18) 7
Select Energy, Inc. 0 109
-------- --------
TOTAL $ 5,124 $ 48,221
======== ========
- ---------------------------------------------------------------------------------------
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES
Pension Cost $ 12,356 ($2,965)
Performance Reward Program 16,195 14,079
Payroll Accrual 1,986 3,585
Payroll Deductions 1,189 2,865
Early Retirement Program (384) (205)
Interest on Connecticut Sales Tax Settlement 15 15
-------- --------
TOTAL $ 31,357 $ 17,374
======== ========
</TABLE>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1999
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
companies comprising 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 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
9.6 percent in 1999 and 12.6 percent in 1998.
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, 1999 and 1998, NUSCO's capital lease obligations and rental
payments, including interest, charged to operating expenses were
immaterial.
Operating lease rental payments charged to expense in 1999 and 1998 were
$6.2 million and $13.1 million, respectively.
Future minimum rental payments, excluding executory costs such as property
taxes, state use taxes, insurance, and maintenance, under long-term
noncancelable operating leases, as of December 31, 1999 are:
Period Millions of Dollars
------ -------------------
2000 $10.7
2001 10.1
2002 9.9
2003 9.7
2004 9.6
After 2004 20.7
-----
Future minimum lease payments $70.7
=====
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,
1999 and 1998, NUSCO has recorded long-term prepaid rent of approximately
$21.4 million and $22.7 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 NU 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 companies, including NUSCO, participate in a uniform
noncontributory defined benefit retirement plan covering substantially 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
was $16.7 million in 1999 and $12.4 million in 1998.
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 (the Code). The NU system companies,
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. The NU system
companies, including NUSCO, fund postretirement costs through external
trusts with amounts that have been rate-recovered and which also are tax
deductible under the Code.
Pension and trust assets are invested primarily in domestic and
international equity securities and bonds.
The following table represents information on the plans' beginning benefit
obligation, fair value of plan assets and the respective plans' funded
status.
The components of net cost are:
-------------------------------------------------------------------------
At December 31,
-------------------------------------------------------------------------
Pension Postretirement
Benefits Benefits
1999 1998 1999 1998
-------------------------------------------------------------------------
(Millions of Dollars)
Change in benefit obligation
Benefit obligation at beginning
of year........................ $(367.4) $(375.1) $(58.4) $(57.7)
Service cost..................... (10.2) (9.8) (1.7) (1.6)
Interest cost.................... (25.2) (24.0) (4.1) (4.0)
Plan amendment................... (17.3) - - -
Transfers........................ 10.8 24.2 - -
Actuarial (loss)/gain............ 34.5 (1.6) 1.8 0.3
Benefits paid.................... 19.5 18.9 5.0 4.6
Curtailments and settlements..... (1.3) - - -
-------------------------------------------------------------------------
Benefit obligation at
end of year.................... $(356.6) $(367.4) $(57.4) $(58.4)
-------------------------------------------------------------------------
Change in plan assets
Fair value of plan assets at
beginning of year.............. $ 534.5 $ 509.9 $ 34.1 $ 29.5
Actual return on plan assets..... 53.0 68.4 4.3 4.1
Employer contribution............ - - 5.0 5.1
Benefits paid.................... (19.5) (18.9) (5.0) (4.6)
Transfers........................ 10.8 (24.8) - -
-------------------------------------------------------------------------
Fair value of plan assets
at end of year.................. $ 578.8 $ 534.6 $ 38.4 $ 34.1
-------------------------------------------------------------------------
Funded status at December 31..... $ 222.2 $ 167.1 $(19.0) $(24.4)
Unrecognized transition amount... (4.1) (4.7) 32.9 35.5
Unrecognized prior service cost.. 22.6 7.0 - -
Unrecognized net gain............ (237.7) (181.8) (13.9) (11.1)
-------------------------------------------------------------------------
Prepaid/(accrued) benefit cost... $ 3.0 $ (12.4) $ - $ -
-------------------------------------------------------------------------
The following actuarial assumptions were used in calculating the plans'
year-end funded status:
-------------------------------------------------------------------------
At December 31,
-------------------------------------------------------------------------
Pension Postretirement
Benefits Benefits
1999 1998 1999 1998
-------------------------------------------------------------------------
Discount rate.................... 7.75% 7.00% 7.75% 7.00%
Compensation/progression rate.... 4.75% 4.25% 4.75% 4.25%
Health care cost trend rate (a).. N/A N/A 5.57% 5.22%
-------------------------------------------------------------------------
(a) The annual growth in per capita cost of covered health care benefits
was assumed to decrease to 4.90 percent by 2001.
The components of net periodic benefit cost are:
-------------------------------------------------------------------------
For the Years Ended December 31,
-------------------------------------------------------------------------
Pension Postretirement
Benefits Benefits
1999 1998 1999 1998
-------------------------------------------------------------------------
(Millions of Dollars)
Service cost..................... $ 10.2 $ 9.8 $ 1.7 $ 1.6
Interest cost.................... 25.2 24.0 4.1 4.0
Expected return on plan assets... (43.7) (38.9) (1.8) (2.3)
Amortization of unrecognized
transition (asset)/obligation.. (0.6) (0.6) 2.5 2.5
Amortization of prior
service cost................... 1.8 0.5 - -
Amortization of actuarial gain... (9.6) (7.2) - -
Other amortization, net.......... - - (1.0) (0.7)
Curtailments and settlements..... - - - -
-------------------------------------------------------------------------
Net periodic benefit
(credit)/cost.................. $(16.7) $(12.4) $ 5.5 $ 5.1
-------------------------------------------------------------------------
For calculating pension and postretirement benefit costs, the following
assumptions were used:
------------------------------------------------------------------------
For the Years Ended December 31,
------------------------------------------------------------------------
Pension Postretirement
Benefits Benefits
1999 1998 1999 1998
------------------------------------------------------------------------
Discount rate.................... 7.00% 7.25% 7.00% 7.25%
Expected long-term rate
of return...................... 9.50% 9.50% - -
Compensation/progression rate.... 4.25% 4.25% 4.25% 4.25%
Long-term rate of return-
Health assets, net of tax........ N/A N/A 7.50% 7.75%
Life assets...................... N/A N/A 9.50% 9.50%
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
(Millions of Dollars Point Increase Point Decrease
-------------------------------------------------------------------------
Effect on total service and
interest cost components....... $0.2 $(0.2)
Effect on postretirement
benefit obligation............. $2.6 $(2.7)
The trust holding the health plan assets is subject to federal income
taxes.
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 $49.5 million for the years 2000-2004, including
approximately $10.9 million for 2000.
6. MERGER AGREEMENT WITH CONSOLIDATED EDISON, INC.
On October 13, 1999, NU and Consolidated Edison, Inc. (Con Edison)
announced that they have agreed to a merger to combine the two companies.
The shareholders of NU will receive $25 per share in a combination of
cash and Con Edison common stock.
NU shareholders also have the right to receive an additional $1 per share
if a definitive agreement to sell its interests (other than that now held
by PSNH) in Millstone 2 and 3 is entered into and recommended by the
Utility Operations and Management Unit of the Connecticut Department of
Public Utility Control on or prior to the later of December 31, 2000, or
the closing of the merger. Further, the value of the amount of cash or
common stock to be received by NU shareholders is subject to increase by
an amount of $0.0034 per share per day for each day that the transaction
does not close after August 5, 2000.
Upon completion of the merger, NU will become a wholly owned subsidiary
of Con Edison. The purchase is subject to the approval of the shareholders
of both companies and several regulatory agencies. The companies
anticipate that these regulatory procedures can be completed by July 2000.
7. MERGER AGREEMENT WITH YANKEE ENERGY SYSTEM, INC.
In June 1999, NU and the Yankee Energy System, Inc. (Yankee) announced
an agreement to merge. On October 12, 1999, Yankee shareholders approved
the proposed merger with NU. On December 20, 1999, the Connecticut
Department of Public Utility Control (DPUC) issued its final decision
approving the merger. In January 2000, the Securities and Exchange
Commission granted final approval of the merger. On March 1, 2000, the
merger was consummated and Yankee became a wholly owned subsidiary of NU.
Yankee is the parent company of the Yankee Gas Service Company, the largest
natural gas distribution company in Connecticut. NU paid $45 per share or
$478 million in cash and stock for all Yankee shares. In addition, NU
assumed $164 million of Yankee's outstanding long-term debt and all of its
short-term debt which totaled $70 million in closing.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
FOR THE YEAR ENDED DECEMBER 31, 1999
SCHEDULE XV
COMPARATIVE INCOME STATEMENT
- --------------------------------------------------------------------------------------
ACCOUNT DESCRIPTION 1999 1998
- --------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
INCOME
------
457 Services rendered to associate companies $261,838 $282,964
458 Services rendered to nonassociate companies 6,759 10,344
421 Miscellaneous income or loss 136 579
447 Sales for resale 50,176 20,811 (1)
------------ -----------
Total Income 318,909 314,698
------------ -----------
EXPENSE
-------
920 Salaries and wages 154,166 152,988
921 Office supplies and expenses 42,641 56,915 (1)
922 Administrative expense transferred-credit - -
923 Outside services employed 45,288 34,347
924 Property insurance 16 1
925 Injuries and damages 577 1,134
926 Employee pensions and benefits 14,493 13,124
928 Regulatory commission expense 6,365 209
930.1 General advertising expenses - -
930.2 Miscellaneous general expenses 4,888 2,996
931 Rents 21,017 16,424
932 Maintenance of structures and equipment 522 1,464
403 Depreciation and amortization expense 10,390 10,676
408 Taxes other than income taxes 12,728 12,582
409 Income taxes (7,007) (2,453)
410 Provision for deferred income taxes 12,112 7,709
411 Provision for deferred income taxes-credit (6,495) (5,431)
411.5 Investment tax credit - -
426.1 Donations 422 302
426.5 Other deductions 6,774 11,711
427 Interest on long-term debt - -
430 Interest on debt to associate companies - -
431 Other interest expense 12 -
------------ -----------
Total Expense 318,909 314,698
------------ -----------
Net Income or (Loss) $ 0 $ 0
============ ===========
(1) Restatement of revenues that were included in account number 921 in 1998.
</TABLE>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1999
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
- ------------------------------------------------------------------------------
DIRECT INDIRECT COMPENSATION TOTAL
COSTS COSTS FOR USE AMOUNT
NAME OF ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED
- ------------------------------------------------------------------------------
(Thousands of Dollars)
457-1 457-2 457-3
---------------------------------------------
Northeast Utilities $ 2,661 $ 414 $- $ 3,075
The Connecticut Light and
Power Company 97,782 16,604 - 114,386
Public Service Company of New
Hampshire 16,635 3,667 - 20,302
North Atlantic Energy
Corporation 402 7 - 409
Western Massachusetts
Electric Company 19,653 3,299 - 22,952
Holyoke Water Power Company 2,403 441 - 2,844
Holyoke Power and Electric
Company 14 - - 14
Northeast Nuclear Energy Company 43,321 5,351 - 48,672
North Atlantic Energy Service
Corporation 7,587 639 - 8,226
The Quinnehtuk Company 64 12 - 76
The Rocky River Realty Company 1,489 25 - 1,514
Properties Inc. 1 - - 1
Charter Oak Energy Incorporated 67 11 - 78
COE Avenue Fenix Corporation 97 8 - 105
NU Enterprises, Inc. 240 7 - 247
Northeast Generation Company 1,003 219 - 1,222
Northeast Generation Services
Company 5,035 731 - 5,766
Mode 1 Communications, Inc. 153 23 - 176
Select Energy, Inc. 27,523 3,901 - 31,424
HEC Inc. 341 8 - 349
-------- ------- ----- --------
TOTAL $226,471 $35,367 $- $261,838
======== ======= ===== ========
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1999
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 (3) $1,303 $ 13 $ - $1,316 $ - $1,316
Connecticut Valley Electric
Exchange (1) 3,956 83 - 4,039 4,039
New England Power Exchange (1) 1,183 - - 1,183 1,183
New England Power Planning
Committee (1) 141 1 - 142 142
New England Power Pool (1) 23 4 - 27 27
---------------------------------------------------------
6,606 101 - 6,707 - 6,707
---------------------------------------------------------
Other miscellaneous revenues: (2)
Pratt & Whitney 21 - - 21 21
Miscellenous (11 companies) 31 - - 31 31
---------------------------------------------------------
52 - - 52 - 52
---------------------------------------------------------
TOTAL $6,658 $101 $ - $6,759 $ - $6,759
=========================================================
</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.
(3) Northeast Utilities Service Company supplies payroll, benefits
administration, environmental, and IT services.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1999
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 $148,847 $ 3,059 $151,906 $2,235 $25 $2,260
921 OFFICE SUPPLIES AND EXPENSES 31,847 8,933 40,780 1,838 23 1,861
922 ADMINISTRATIVE EXPENSE TRANSFERRED-
CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 42,155 2,712 44,867 415 6 421
924 PROPERTY INSURANCE 0 16 16 0 0 0
925 INJURIES AND DAMAGES 575 0 575 2 0 2
926 EMPLOYEE PENSIONS AND BENEFITS 14,312 0 14,312 181 0 181
928 REGULATORY COMMISSION EXPENSE 6,365 0 6,365 0 0 0
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 3,888 981 4,869 19 0 19
931 RENTS 9,963 9,232 19,195 1,806 16 1,822
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 135 384 519 0 3 3
403 DEPRECIATION AND AMORTIZATION EXPENSE 0 10,362 10,362 0 28 28
408 TAXES OTHER THAN INCOME TAXES 12,566 0 12,566 162 0 162
409 INCOME TAXES (7,007) 0 (7,007) 0 0 0
410 PROVISION FOR DEFERRED INCOME TAXES 12,112 0 12,112 0 0 0
411 PROVISION FOR DEFERRED INCOME TAXES -
CREDIT (6,495) 0 (6,495) 0 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0 0 0 0
426.1 DONATIONS 422 0 422 0 0 0
426.5 OTHER DEDUCTIONS 6,772 2 6,774 0 0 0
427 INTEREST ON LONG-TERM DEBT 0 0 0 0 0 0
431 OTHER INTEREST EXPENSE 12 0 12 0 0 0
---------------------------------------------------------
SUBTOTAL EXPENSES = 276,469 35,681 312,150 6,658 101 6,759
COMPENSATION FOR USE OF EQUITY CAPITAL =
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0 0
431 OTHER INTEREST EXPENSE= 0 0
---------- -----------
TOTAL EXPENSES = 312,150 6,759
421 MISCELLANEOUS INCOME - CREDIT 178 (314) (136) 0 0 0
447 SALES FOR RESALE - CREDIT (50,176) 0 (50,176) 0 0 0
---------------------------------------------------------
TOTAL COST OF SERVICE = $226,471 $35,367 $261,838 $6,658 $101 $6,759
=========================================================
</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 $151,082 $ 3,084 $154,166
921 OFFICE SUPPLIES AND EXPENSES 33,685 8,956 42,641
922 ADMINISTRATIVE EXPENSE TRANSFERRED-
CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 42,570 2,718 45,288
924 PROPERTY INSURANCE 0 16 16
925 INJURIES AND DAMAGES 577 0 577
926 EMPLOYEE PENSIONS AND BENEFITS 14,493 0 14,493
928 REGULATORY COMMISSION EXPENSE 6,365 0 6,365
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 3,907 981 4,888
931 RENTS 11,769 9,248 21,017
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 135 387 522
403 DEPRECIATION AND AMORTIZATION EXPENSE 0 10,390 10,390
408 TAXES OTHER THAN INCOME TAXES 12,728 0 12,728
409 INCOME TAXES (7,007) 0 (7,007)
410 PROVISION FOR DEFERRED INCOME TAXES 12,112 0 12,112
411 PROVISION FOR DEFERRED INCOME TAXES -
CREDIT (6,495) 0 (6,495)
411.5 INVESTMENT TAX CREDIT 0 0 0
426.1 DONATIONS 422 0 422
426.5 OTHER DEDUCTIONS 6,772 2 6,774
427 INTEREST ON LONG-TERM DEBT 0 0 0
431 OTHER INTEREST EXPENSE 12 0 12
---------------------------------
SUBTOTAL EXPENSES = 283,127 35,782 318,909
COMPENSATION FOR USE OF EQUITY CAPITAL=
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES= 0
431 OTHER INTEREST EXPENSE= 0
-----------
TOTAL EXPENSES = 318,909
421 MISCELLANEOUS INCOME - CREDIT 178 (314) (136)
447 SALES FOR RESALE - CREDIT (50,176) 0 (50,176)
---------------------------------
TOTAL COST OF SERVICE = $233,129 $35,468 $268,597
=================================
</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, 1999
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 154,166 $ 3,084 $ 905 $ 1,136 $12,839 $8,191
921 OFFICE SUPPLIES AND EXPENSES 42,641 8,956 40 150 1,185 1,408
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 45,288 2,718 215 612 4,239 103
924 PROPERTY INSURANCE 16 16 0 0 0 0
925 INJURIES AND DAMAGES 577 0 0 0 0 0
926 EMPLOYEE PENSIONS AND BENEFITS 14,493 0 2,605 (14,236) 20 0
928 REGULATORY COMMISSION EXPENSE 6,365 0 0 0 0 0
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 4,888 981 0 28 346 3
931 RENTS 21,017 9,248 3 0 5 3
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 522 387 0 0 0 0
403 DEPRECIATION AND AMORTIZATION EXPENSE 10,390 10,390 0 0 0 0
408 TAXES OTHER THAN INCOME TAXES 12,728 0 0 0 0 0
409 INCOME TAXES (7,007) 0 0 0 0 0
410 PROVISION FOR DEFERRED INCOME TAXES 12,112 0 0 0 0 0
411 PROVISION FOR DEFERRED INCOME TAXES - CREDIT (6,495) 0 0 0 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0 0 0 0
426.1 DONATIONS 422 0 0 0 0 0
426.5 OTHER DEDUCTIONS 6,774 2 36 0 0 8
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 12 0 0 0 0 0
--------------------------------------------------------
TOTAL EXPENSES = $318,909 $35,782 $3,804 $(12,310) $18,634 $9,716
========================================================
</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, 1999
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 $ 885 $8,684 $4,093 $1,881 $20,624 $11,592
921 OFFICE SUPPLIES AND EXPENSES 88 156 166 126 1,906 524
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 342 478 303 243 3,124 4,043
924 PROPERTY INSURANCE 0 0 0 0 0 0
925 INJURIES AND DAMAGES 0 0 0 0 0 5
926 EMPLOYEE PENSIONS AND BENEFITS 0 0 (5) 0 13 0
928 REGULATORY COMMISSION EXPENSE 0 0 0 0 3 0
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 10 18 21 41 712 263
931 RENTS 1 0 0 24 902 282
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 0 0 0 0 20 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 1 1 0
426.5 OTHER DEDUCTIONS 0 0 0 6 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 = $1,326 $9,336 $4,578 $2,322 $27,305 $16,709
=====================================================
</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, 1999
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 $4,839 $6,542 $16,938 $ 8,985 $3,305 $1,775
921 OFFICE SUPPLIES AND EXPENSES 1,552 11 5,547 15,006 37 54
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 4,362 1 6,233 10,522 920 116
924 PROPERTY INSURANCE 0 0 0 0 0 0
925 INJURIES AND DAMAGES 27 0 0 0 0 0
926 EMPLOYEE PENSIONS AND BENEFITS 1 0 4 25,409 0 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 230 4 841 300 0 0
931 RENTS 78 0 8,575 304 0 3
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 0 0 13 0 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 394 0 0 1 0 0
426.5 OTHER DEDUCTIONS 161 0 0 0 0 0
427 INTEREST ON LONG-TERM DEBT 0 0 0 0 0 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0 0 0 0 0 0
431 OTHER INTEREST EXPENSE 0 0 0 0 0 0
-------------------------------------------------------
TOTAL EXPENSES = $11,644 $6,558 $38,151 $60,527 $4,262 $1,948
=======================================================
</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, 1999
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 $4,940 $5,604 $ 685 $2,602 $ 3,703 $20,330
921 OFFICE SUPPLIES AND EXPENSES 114 221 112 82 169 5,026
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 1,791 1,053 49 895 224 2,702
924 PROPERTY INSURANCE 0 0 0 0 0 0
925 INJURIES AND DAMAGES 539 3 0 0 0 3
926 EMPLOYEE PENSIONS AND BENEFITS 12 14 0 60 1 595
928 REGULATORY COMMISSION EXPENSE 257 0 0 0 6,105 0
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 70 311 36 488 87 98
931 RENTS 0 3 51 78 0 135
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 0 88 0 0 0 14
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 25 0 0 0 0
426.5 OTHER DEDUCTIONS 0 140 3,437 2,984 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 = $7,723 $7,462 $4,370 $7,189 $10,289 $28,903
========================================================
</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, 1999
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
- ----------------------------------------------------------------------
ACCOUNT ------------------
NUMBER DESCRIPTION OF ITEMS (23) (24)
- ----------------------------------------------------------------------
[S] [C] [C]
920 SALARIES AND WAGES $ 4 $ 0
921 OFFICE SUPPLIES AND EXPENSES 5 0
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0
923 OUTSIDE SERVICES EMPLOYED 0 0
924 PROPERTY INSURANCE 0 0
925 INJURIES AND DAMAGES 0 0
926 EMPLOYEE PENSIONS AND BENEFITS 0 0
928 REGULATORY COMMISSION EXPENSE 0 0
930.1 GENERAL ADVERTISING EXPENSES 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 0 0
931 RENTS 1,322 0
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 0 0
403 DEPRECIATION AND AMORTIZATION EXPENSE 0 0
408 TAXES OTHER THAN INCOME TAXES 0 12,728
409 INCOME TAXES 0 (7,007)
410 PROVISION FOR DEFERRED INCOME TAXES 0 12,112
411 PROVISION FOR DEFERRED INCOME TAXES - CREDIT 0 (6,495)
411.5 INVESTMENT TAX CREDIT 0 0
426.1 DONATIONS 0 0
426.5 OTHER DEDUCTIONS 0 0
427 INTEREST ON LONG-TERM DEBT 0 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0 0
431 OTHER INTEREST EXPENSE 0 12
-----------------
TOTAL EXPENSES = $1,331 $11,350
=================
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, 1999
SCHEDULE XVII
-------------
KEYS FOR SERVICE FUNCTIONS
--------------------------
KEYS SERVICE FUNCTION
---- ----------------
(1) Chairman, President and Chief Executive Officer
(2) Executive V.P. and Chief Financial Officer
(3) Power Marketing group
(4) Energy Services group
(5) Senior V.P.-Strategy & Development
(6) V.P. and Controller
(7) V.P. and Treasurer
(8) Retail Business group
(9) Energy Delivery group
(10) Customer Service group
(11) Customer Support group
(12) V.P. - Administration
(13) V.P. and Chief Information Officer
(14) V.P. - Human Resources and Organizational Development
(15) Director - Purchasing and Contracts
(16) Director - Internal Audit and Security
(17) Senior V.P.,Secretary and General Counsel
(18) V.P. - Environmental Safety & Ethics
(19) V.P. - Governmental Affairs
(20) V.P. - Corporate Communication
(21) V.P. - Rates, Regulatory Affairs & Compliance
(22) Generation group
(23) New England Power Pool
(24) Corporate Expenses - unallocated
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1999
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 $ 905 $ 118 $ 787 $ 0 3
Executive V.P. and Chief
Financial Officer 1,136 321 815 0 10
Power Marketing group 12,839 46 12,792 1 114
Energy Services group 8,191 0 8,191 0 98
Senior V.P.-Strategy & Development 885 162 723 0 11
V.P. and Controller 8,684 79 8,498 107 139
V.P. and Treasurer 4,093 174 3,916 3 73
Retail Business group 1,881 8 1,873 0 23
Energy Delivery group 20,624 25 18,681 1,918 252
Customer Service group 11,592 57 11,534 1 192
Customer Support group 4,839 9 4,830 0 70
V.P. - Administration 6,542 150 6,392 0 3
V.P. and Chief Information Officer (1) 18,646 107 18,515 24 477
V.P. - Human Resources and Organizational
Development (2) 10,300 89 10,177 34 142
Director - Purchasing and Contracts 3,305 12 3,290 3 48
Director - Internal Audit and Security 1,775 43 1,708 24 27
Senior V.P., Secretary and
General Counsel 4,940 581 4,330 29 66
V.P.- Environmental Safety & Ethics (3) 5,665 14 5,634 17 82
V.P.- Governmental Affairs 685 15 670 0 8
V.P. - Corporate Communication 2,602 35 2,567 0 40
V.P. - Rates, Regulatory Affairs &
Compliance 3,703 9 3,694 0 59
Generation group 20,330 90 20,141 99 245
New England Power Pool 4 0 4 0 0
-------------------------------------- ---------
$154,166 $2,144 $149,762 $2,260 2,182
====================================== =========
(1) Total amount includes $1,708,000 of payroll overhead.
(2) Total amount includes $1,315,000 of payroll overhead.
(3) Total amount includes $61,000 of payroll overhead.
</TABLE>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1999
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)
AUDITING SERVICES
- -----------------
ARTHUR ANDERSEN NA $ 24
-------
TOTAL AUDITING SERVICES $ 24
=======
ADVERTISING SERVICES
- --------------------
ENERGY FEDERATION INC NA $ 151
MARK MAGRANN ASSOCIATES NA 572
MISCELLANEOUS (10 PAYEES) NA 155
-------
TOTAL ADVERTISING SERVICES $ 878
=======
COLLECTION SERVICES
- -------------------
CREDIT BUREAU COLLECTIONS NA $ 134
CREDIT CENTER INC NA 213
NCO FINANCIAL SYSTEM INC NA 107
MISCELLANEOUS (7 PAYEES) NA 129
-------
TOTAL COLLECTION SERVICES $ 583
=======
COMPUTER SERVICES
- -----------------
ARTHUR D LITTLE INC NA $ 403
CISCO SYSTEMS INC NA 303
COMPLETE BUSINESS SOLUTIONS NA 2,248
CONTROL SOFTWARE INC NA 159
IBM NA 1,776
INDUS INTERNATIONAL INC NA 1,255
J P ASSOCIATES INC NA 140
MICROAGE NA 226
SOFTMART INC NA 218
SUN MICROSYSTEMS INC NA 217
UNIPOWER SYSTEMS NA 184
MISCELLANEOUS (61 PAYEES) NA 1,115
-------
TOTAL COMPUTER SERVICES $ 8,244
=======
ENGINEERING SERVICES
- --------------------
CATARACT INC NA $ 311
COMPLETE BUSINESS SOLUTIONS NA 632
CONTINENTAL SERVICES GROUP INC NA 185
EURO SYSTEMS INTERNATIONAL NA 125
HIGH TECH CONSULTANTS NA 177
INTANDEM TECHNOLOGY INC NA 100
PARAMOUNT SYSTEMS INC NA 347
PREMIER DATA SERVICES INC NA 242
PRICE WATERHOUSE COOPERS LLP NA 237
MICROAGE NA 173
SERTEX CORP NA 205
TECHNICAL AID CORP NA 274
WILLIAMS COMMUNICATIONS NA 155
WILTEL COMMUNICATION SYSTEMS NA 153
WOODS ELECTRICAL COMPANY INC NA 373
MISCELLANEOUS (56 PAYEES) NA 822
-------
TOTAL ENGINEERING SERVICES $ 4,511
=======
LEGAL SERVICES
- --------------
CARMODY & TORRANCE NA $ 237
DAY BERRY & HOWARD NA 205
LEBOEUF LAMB GREENE & MACRAE NA 174
MORGAN LEWIS & BOCKIUS LLP NA 407
MISCELLANEOUS (42 PAYEES) NA 430
-------
TOTAL LEGAL SERVICES $ 1,453
=======
PRINTING SERVICES
- -----------------
ALLIED PRINTING SERVICES INC NA $ 397
MISCELLANEOUS (2 PAYEES) NA 36
-------
TOTAL PRINTING SERVICES $ 433
=======
TEMPORARY EMPLOYMENT SERVICES
- ------------------------------
MANPOWER INC NA $ 887
NUCON ENGINEERING ASSOC INC NA 1,294
OPTIMUM STAFFING WORKSITES INC NA 214
MISCELLANEOUS (2 PAYEES) NA 83
-------
TOTAL TEMPORARY EMPLOYMENT SERVICES $ 2,478
=======
OTHER SERVICES
- --------------
ADEPT INC NA $ 648
ADM ASSOCIATES INC NA 162
ALLEGRO DEVELOPMENT CORP NA 1,436
ARGENBRIGHT SECURITY INC NA 373
ATLANTIC TELECOM INC NA 182
BERNARD M FOX NA 186
CAMBRIDGE ENERGY RESEARCH NA 114
CAMBRIDGE REPORTS NA 231
CT HOUSING INVESTMENT FUND NA 1,330
DELOITTE & TOUCHE NA 801
ENERGY FEDERATION INC NA 272
EQUIFAX CREDIT INFO SERVICES NA 209
ESCA CORP NA 134
ETP INC NA 210
EUREST DINING SERVICES NA 163
EXECUTIVE JET MANAGEMENT NA 114
GOULD COMMUNICATIONS GROUP INC NA 139
HAY GROUP INC NA 264
HEWITT ASSOCIATES NA 381
LATHAM MANAGEMENT SERVICES NA 162
MCMANUS & MILES NA 288
METCALF & EDDY NA 1,028
MILLETTE ASSOCIATES NA 173
MORGAN STANLEY & COMPANY INC NA 182
NANCY J KIRBY NA 119
OPINION DYNAMICS CORP NA 186
PARAMOUNT SYSTEMS INC NA 117
PRO FITNESS NA 605
PRT GROUP INC NA 164
RLW ANALYTICAL INC NA 745
ROCKWELL ELECTRONIC COMMERCE NA 181
RONALD CHEVALIER NA 118
RUMLA, INC NA 103
SOFTAIDE SERVICES NA 148
SPECTRUM ASSOC NA 120
TASC INC NA 212
TECHNICAL AID CORP NA 246
THE WINN COMPANY NA 217
TOWERS PERRIN NA 385
UMS GROUP INC NA 578
WILLIAMS COMMUNICATIONS NA 117
MISCELLANEOUS (666 PAYEES) NA 13,141
-------
TOTAL OTHER SERVICES $26,684
-------
$45,288
=======
<TABLE>
<CAPTION> For the Year Ended December 31, 1999
OUTSIDE SERVICES EMPLOYED
VENDOR NAME DESCRIPTION OF SERVICES RENDERED
- --------------------------------------------------------------------------------------------------------
<S> <C>
AUDITING SERVICES
- -----------------
ARTHUR ANDERSEN Provide audit services to NU Companies
ADVERTISING SERVICES
- --------------------
ENERGY FEDERATION INC Provide the creative design, project management services and printing
of Fall/Winter Smartliving catalogs
MARK MAGRANN ASSOCIATES Provide marketing services to HVAC manufacturers, distributors,
dealers and contractors for Northeast Utilities
COLLECTION SERVICES
- -------------------
CREDIT BUREAU COLLECTIONS Furnish Collection Services for the Western Mass Region and the
Hartford Area
CREDIT CENTER INC Furnish collection services for early placement of final bills
NCO FINANCIAL SYSTEM INC Furnish Collection Services for the Eastern Region
COMPUTER SERVICES
- -----------------
ARTHUR D LITTLE INC Provide consulting services to perform an assessment of the Northeast
Utilities System Y2K program and contingency plan
CISCO SYSTEMS INC Provide annual LAN maintenance services
COMPLETE BUSINESS SOLUTIONS Consulting Services for Y2K issue relating to Millstone
CONTROL SOFTWARE INC Provide data conversion, training and support services needed to
upgrade Fleet Management software
IBM Furnish integrated services including both hardware and software for
Asset Management system
INDUS INTERNATIONAL INC Provide support services for Passport software application
J P ASSOCIATES INC Provide Windows 95 training and support
MICROAGE Furnish services to support Desktop maintenance effort and PC
development
SOFTMART INC Provide software support services
SUN MICROSYSTEMS INC Provide software support services
UNIPOWER SYSTEMS Furnish computer design services to develop a preliminary PEP process
for NUSCO
ENGINEERING SERVICES
- --------------------
CATARACT INC Provide support for Millstone Operational Standards Report
COMPLETE BUSINESS SOLUTIONS Provide consultant services for support of SYBASE DBA Activities
CONTINENTAL SERVICES GROUP INC Provide consultant services for support of MIMS Business/IT
EURO SYSTEMS INTERNATIONAL Provide consulting services to perform Information Modelar Liaison
activities for IT Wholesale Marketing Team
HIGH TECH CONSULTANTS Support for DB2 Administration
INTANDEM TECHNOLOGY INC Provide ADABAS database support
PARAMOUNT SYSTEMS INC Provide consulting services for Wholesale Marketing IT ISO
development project
PREMIER DATA SERVICES INC Services to Support the INDUS Passport Infrastructure Project
PRICE WATERHOUSE COOPERS LLP Provide consulting services for NU Strategic Environmental Project
MICROAGE Provide technical support for corporate adds, moves, and changes
SERTEX CORP Perform Fiber cable Installation on distribution poles
TECHNICAL AID CORP Furnish professional and clerical personnel to support Marketing
and Conservation Programs
WILLIAMS COMMUNICATIONS Furnish resident technicians to complete Customer Service Requests
at NU System locations
WILTEL COMMUNICATION SYSTEMS Furnish resident technicians to complete Customer Service Requests
at NU System locations
WOODS ELECTRICAL COMPANY INC Provide services for conduit installations at various schools in
Hartford in conjunction with Hartford Helpnet Project.
LEGAL SERVICES
- --------------
CARMODY & TORRANCE Provide Legal Services on an as Requested Basis
DAY BERRY & HOWARD Provide Legal Services on an as Requested Basis
LEBOEUF LAMB GREENE & MACRAE Provide Legal Services on an as Requested Basis
MORGAN LEWIS & BOCKIUS LLP 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
OPTIMUM STAFFING WORKSITES INC Furnish professional nursing and EMT services at Berlin Health Unit
OTHER SERVICES
- --------------
ADEPT INC Provide consulting services to support Y2K contingency planning
ADM ASSOCIATES INC Furnish services to conduct Customer Service Evaluations
ALLEGRO DEVELOPMENT CORP Provide software, licenses and implementation services for Allegro
software modules
ARGENBRIGHT SECURITY INC Provide Uniformed Security Guard Service
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
CAMBRIDGE ENERGY RESEARCH Furnish consulting services as required by NU's New Business and
Product Development Department
CAMBRIDGE REPORTS Provide services to conduct quarterly Customer Satisfaction Surveys
CT HOUSING INVESTMENT FUND Support the Administration and Oversight of the Wrap Unit to Provide
Low-Income Weatherization Services
DELOITTE & TOUCHE Furnish consulting services to assist NUSCO in its implementation of
an integrated Energy Transaction and Risk Management System
ENERGY FEDERATION INC Furnish Fulfillment services for the Smartliving Program
EQUIFAX CREDIT INFO SERVICES Analytical Services to Verify Customer Database, Provide
Firmographics and Demographics Data
ESCA CORP Furnish software maintenance services
ETP INC Provide Employee Assistance Program to employees in CT, MA and NH
EUREST DINING SERVICES Furnish Food Service to Wethersfield, Berlin, Waterbury, Hartford and
Brush Hill cafeterias
EXECUTIVE JET MANAGEMENT Provide Aircraft Management services for Company's Cessna Aircraft
GOULD COMMUNICATIONS GROUP INC Provide consulting services for creation of Online Survey Recruitment
and Incentives
HAY GROUP INC Furnish consulting services to assist in implementation of Broad-
banding compensation program
HEWITT ASSOCIATES Furnish consulting and actuarial services related to company Pension
Plans
LATHAM MANAGEMENT SERVICES Provide professional services for Conservation Planning
MCMANUS & MILES Provide financial consulting services to assist in restructuring
non-utility generation purchase contracts
METCALF & EDDY Provide environmental site evaluations for CL&P
MILLETTE ASSOCIATES Provide onsite physician services to NU
MORGAN STANLEY & COMPANY INC Furnish consulting services for Merger and Acquisition projects
NANCY J KIRBY Provide services for various training and assessment assignments
OPINION DYNAMICS CORP Conducted an impact and process evaluation of the Smartliving Program
PARAMOUNT SYSTEMS INC MIMS, NUTIMS and Millennium Project Support
PRO FITNESS Furnish consulting services to develop the Health Enhancement Program
PRT GROUP INC Provide contractor services
RLW ANALYTICAL INC Furnish services to conduct a New Construction Evaluation
ROCKWELL ELECTRONIC COMMERCE Provide maintenance services to Berlin, Wethersfield, Brush Hill and
PSNH Customer Service Centers
RONALD CHEVALIER Provide consulting services regarding Divesture and Acquistion of
Generation Facilities
RUMLA, INC Furnish consulting services to support WMECO's Standard Offer and
Default Energy Services required as part of the Restructuring Effort
SOFTAIDE SERVICES Furnish consulting and programming support to Benefits Department for
automation of Billing Process
SPECTRUM ASSOC Furnish services to perform Customer Center Telephone Survey
TASC INC Provide Long Range Weather Forcasting services
TECHNICAL AID CORP Furnish Professional and Clerical Personnel to Support Marketing
and Conservation Programs
THE WINN COMPANY Furnish consulting services for Nuclear Communications services
TOWERS PERRIN Furnish consulting services for Benefits Department
UMS GROUP INC Provide professional services to run PACE Program
WILLIAMS COMMUNICATIONS Provide NORTEL maintenance services at Merrimack Station
</TABLE>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1999
EMPLOYEE PENSIONS AND BENEFITS
ACCOUNT 926
INSTRUCTIONS: Provide a listing of each pension plan and benefit
program provided by the service company. Such
listing should be limited to $25,000.
- ------------------------------------------------------------------------
DESCRIPTION AMOUNT
- ------------------------------------------------------------------------
(Thousands of Dollars)
Pension Plan ($14,351)
Supplemental Retirement and Savings Plan 7,355
Group Life, Long-term Disability, Hospital
and Medical Insurance Expenses 14,981
Post Retirement Medical Benefit - FAS 106 5,013
Early Retirement Program 1,279
Other Employee Benefits Expenses 216
---------
TOTAL $14,493
=========
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1999
GENERAL ADVERTISING EXPENSES
ACCOUNT 930.1
INSTRUCTIONS: Provide a listing of the amount included in Account 930.1,
"General Advertising Expenses," classifying the items
according to the nature of the advertising and as
defined in the account definition. If a particular class
includes an amount in excess of $3,000 applicable to a
single payee, show separately the name of the payee and
the aggregate amount applicable thereto.
- ------------------------------------------------------------------------------
DESCRIPTION NAME OF PAYEE AMOUNT
- ------------------------------------------------------------------------------
(Thousands of Dollars)
---------
TOTAL $ -
=========
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1999
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 $3,383
Shareholder reports and meetings 413
Employee Development 278
Other miscellaneous expenses (121 items) 814
------
TOTAL $4,888
======
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1999
RENTS
ACCOUNT 931
INSTRUCTIONS: Provide a listing of the amount included in Account 931,
"Rents," classifying such expenses by major groupings of
property, as defined in the account definition of the
Uniform System of Accounts.
- ------------------------------------------------------------------------
TYPE OF PROPERTY AMOUNT
- ------------------------------------------------------------------------
(Thousands of Dollars)
Buildings/office space $ 6,763
Computer/Office equipment 13,939
Vehicles 315
-------
TOTAL $21,017
=======
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1999
TAXES OTHER THAN INCOME TAXES
ACCOUNT 408
INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other Than
Income Taxes." Separate the analysis into two groups:
(1)Other than U.S. Government taxes, and (2) U.S.
Government taxes. Specify each of the various kinds of
taxes and show the amounts thereof. Provide a subtotal
for each class of tax.
- ------------------------------------------------------------------------
KIND OF TAX AMOUNT
- ------------------------------------------------------------------------
(Thousands of Dollars)
(1) Other Than U.S. Government Taxes:
Connecticut Unemployment $ 410
Massachusetts Unemployment 9
Local property 1,174
Connecticut Corporation Business Tax 356
Connecticut Sales Tax 59
Other 9
-------
Sub-Total 2,017
-------
(2) U.S. Government Taxes:
Federal Insurance Contribution Act 8,279
Medicare Tax 2,318
Federal Unemployment 137
Federal Excise (23)
-------
Sub-Total 10,711
-------
TOTAL $12,728
=======
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1999
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 $ 45
HIV ACTION INITIATIVE CHARITABLE CONTRIBUTION 22
CONNECTICUT MILLINNIUM GALA CHARITABLE CONTRIBUTION 19
AMERICAN LITHOGRAPHY CORP CHARITABLE CONTRIBUTION 18
CAMBRIDGE REPORTS RES INTL CHARITABLE CONTRIBUTION 16
FRANKLIN PIERCE COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 15
UNITED WAY CHARITABLE CONTRIBUTION 15
HOW 2 DESIGN CHARITABLE CONTRIBUTION 13
CENTER CITY CHURCHES INC CHARITABLE CONTRIBUTION 12
BARKER SPECIALITY CHARITABLE CONTRIBUTION 12
CT BUSINESS & INDUSTRY ASSOCIATION CHARITABLE CONTRIBUTION 11
ARROW BUS CO CHARITABLE CONTRIBUTION 11
RENSSELAER POLYTECHNIC INSTITUTE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 10
ST. JOSEPH COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 10
SUMMER MUSIC INC CHARITABLE CONTRIBUTION 10
THE FAMILY EDUCATION COMPANY CHARITABLE CONTRIBUTION 9
MARTIN FOTO & ART CHARITABLE CONTRIBUTION 8
NAUGATUCK VALLEY COMMUNITY TECH COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 6
THE CONFERENCE BOARD INC CHARITABLE CONTRIBUTION 6
MASHANTUCKET PEQUOT TRIBE CHARITABLE CONTRIBUTION 6
CAPITAL COMMUNITY TECH COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 5
CENTRAL CONNECTICUT STATE UNIVERSITY CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 5
MYSTIC AQUARIUM INSTITUTE FOR EXPLORATION CHARITABLE CONTRIBUTION 5
NORWALK COMMUNITY TECHNICAL COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 5
SCIENCE CENTER OF CONNECTICUT CHARITABLE CONTRIBUTION 5
UNIVERSITY OF MASSACHUSETTS CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 5
WESLEYAN DEVELOPMENT OFFICE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 5
MERRIAM WEBSTER INC CHARITABLE CONTRIBUTION 5
BRYANT COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 4
LOAVES & FISHES MINISTRIES CHARITABLE CONTRIBUTION 4
NU FOUNDATION, INC. CHARITABLE CONTRIBUTION 4
THE HARTY PRESS INC CHARITABLE CONTRIBUTION 4
BOYS & GIRLS CLUBS OF HARTFORD CHARITABLE CONTRIBUTION 4
SPRINGFIELD COMMUNITY TECHNICAL COLLEGE CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 3
THE NEW ENGLAND COUNCIL CHARITABLE CONTRIBUTION 3
GE CAPITAL TECHNOLOGY CHARITABLE CONTRIBUTION 3
THE REVITALIZATION CORPS CHARITABLE CONTRIBUTION 3
MISCELLANEOUS (127 PAYEES) CHARITABLE CONTRIBUTION AND EDUCATIONAL GRANT 76
----
TOTAL $422
====
</TABLE>
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1999
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 $2,512
Government relation
expenditures Bond & Company 175
Gaffney, Bennett and Associates, Inc. 127
Levy & Droney, PC 126
Issues Management 125
Updike Kelly & Spellacy, PC 123
Avallone Dibella & Associates 106
Miscellaneous (55 items) 210
Communication services Cronin & Company 2,915
Miscellaneous (22 items) 61
Contributions Miscellaneous (112 items) 294
------
TOTAL $6,774
======
ANNUAL REPORT OF NORTHEAST UTILITIES SERVICE COMPANY
For the Year Ended December 31, 1999
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, 1999)
Chairman, President and Chief Executive Officer
- Executive Vice President and Chief Financial Officer
- Senior Vice President - Strategy and Development
- Vice President and Treasurer
- Vice President and Controller
- 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 - Human Resources and Organizational Development
- 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, 1999
------------------------------------
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) 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 1999, 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, 1999
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: $ 50,176
--------
Expenses:
Purchased power 45,034
Purchased capacity 133
Transmission 63
Other 312
--------
$ 45,542
========
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 20, 2000
---------------------
<TABLE> <S> <C>
<ARTICLE>OPUR2
<CIK>0000205716
<NAME>NORTHEAST UTILITIES SERVICE COMPANY
<MULTIPLIER>1,000
<PERIOD-TYPE> YEAR YEAR
<FISCAL-YEAR-END> DEC-31-1999 DEC-31-1998
<PERIOD-END> DEC-31-1999 DEC-31-1998
<BOOK-VALUE> PER-BOOK PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 38,752 36,438
<TOTAL-INVESTMENTS> 5,173 4,859
<TOTAL-CURRENT-ASSETS> 215,289 201,999
<TOTAL-DEFERRED-DEBITS> 43,831 53,217
<OTHER-ASSETS-AND-DEBITS> 0 0
<TOTAL-ASSETS-AND-DEBITS> 303,045 296,513
<TOTAL-PROPRIETARY-CAPITAL> 1 1
<TOTAL-LONG-TERM-DEBT> 0 0
<NOTES-PAYABLE> 0 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 109,200 107,350
<OTHER-CURR-AND-ACCRUED-LIAB> 120,829 118,739
<TOTAL-DEFERRED-CREDITS> 73,015 70,423
<DEFERRED-INCOME-TAX> 0 0
<TOT-LIABIL-AND-PROPRIET-CAP> 303,045 296,513
<SERVICES-ASSOCIATE-COMPANIES> 261,838 282,964
<SERVICES-NON-ASSOCIATE-COMP> 6,759 10,344
<MISC-INCOME-OR-LOSS> 136 579
<TOTAL-INCOME> 318,909 314,698
<SALARIES-AND-WAGES> 154,166 152,988
<EMPLOYEE-PENSION-AND-BENEFIT> 14,493 13,124
<OTHER-EXPENSES> 150,250 148,586
<TOTAL-EXPENSES> 318,909 314,698
<NET-INCOME> 0 0
<TOTAL-EXPENSES-DIRECT-COST> 283,127 282,810
<TOTAL-EXPENSES-INDIRECT-COST> 35,782 31,888
<TOT-EXP-DIRECT-AND-INDIRECT> 318,909 314,698
<PERSONNEL-END-OF-YEAR> 2,182 2,316
</TABLE>
