File No. 69-244
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C.
FORM U-3A-2
Statement by Holding Company Claiming
Exemption Under Rule U-3A-2 from the
Provisions of the Public Utility
Holding Company Act of 1935
To Be Filed Annually Prior to March 1
CONNECTICUT ENERGY CORPORATION
------------------------------
(Name of Company)
hereby files with the Securities and Exchange Commission, pursuant to Rule 2,
its statement claiming exemption as a holding company from the provisions of
the Public Utility Holding Company Act of 1935, and submits the following
information:
1(a) The name, State of organization, location and nature of business
of the claimant and every subsidiary thereof, other than any exempt wholesale
generator ("EWG") or foreign utility company in which the claimant directly
or indirectly holds an interest are as follows:
The name of the claimant is Connecticut Energy Corporation (the
"claimant"). The claimant is incorporated under the laws of the State of
Connecticut. Its principal place of business and executive offices are
located at 855 Main Street, Bridgeport, Connecticut 06604. The claimant is not
an operating company. The business of the claimant consists of investing in,
disposing of, buying, selling and otherwise dealing in the stock, bonds,
securities and properties of the other corporations listed below in 1(b).
1(b) The name, State of organization, location and nature of business
of every subsidiary of the claimant thereof, other than any EWG or foreign
utility company in which the claimant directly or indirectly holds an
interest are as follows:
(i) The Southern Connecticut Gas Company ("Southern"). Southern
is incorporated under the laws of the State of Connecticut
and has its executive offices located at 855 Main Street,
Bridgeport, Connecticut 06604. Southern is principally
engaged in the retail distribution and sale of natural gas
for domestic, commercial and industrial uses in southern
Connecticut, primarily in the New Haven and Bridgeport areas.
Incidental to the sale of gas, Southern sells gas water
heaters and space heaters. Southern is subject to the
jurisdiction of the Connecticut Department of Public Utility
Control as to accounting, rates, charges, certain operating
matters and the issuance of securities other than borrowings
maturing in twelve months or less.
(ii) CNE Development Corporation ("CNE Development"). CNE
Development, formerly known as Connecticut Energy Development
Corporation, is incorporated under the laws of the State of
Connecticut and has its executive offices located at
855 Main Street, Bridgeport, Connecticut 06604. CNE
Development was formed in December 1994 and is participating
as an equity holder in an entity formed to purchase and
market natural gas and may potentially participate in other
nonregulated activities.
(iii) CNE Energy Services Group, Inc. ("CNE Energy"). CNE Energy is
incorporated under the laws of the State of Connecticut and
has its executive offices located at 855 Main Street,
Bridgeport, Connecticut 06604. CNE Energy was formed in
August 1995 and engages in nonregulated activities relating
to the selling, planning, purchasing and management of
various energy services to commercial and industrial end
users.
(iv) CNE Venture-Tech, Inc. ("CNE Venture-Tech") is incorporated
under the laws of the State of Connecticut and has its
executive offices located at 855 Main Street, Bridgeport,
Connecticut 06604. CNE Venture-Tech is a nonregulated
subsidiary which was formed in October 1996 and is expected
to participate or invest in information technology ventures
including, but not limited to, providing related services.
It is anticipated that CNE Venture-Tech will enter into
strategic alliances with other vendors in the information
technology business to provide services to utilities and
other businesses.
2. A brief description of the properties of the claimant and its
subsidiary public utility company is as follows:
(a) The claimant -- The claimant has no properties other than the
common stock of the subsidiaries described above in 1(b).
(b) Southern -- A major portion of Southern's physical assets
consists of gas distribution facilities. As of
December 31, 1996, Southern had 2,114 miles of main and
122,160 service connections. Southern leases its corporate
headquarters building in Bridgeport and leases an operating
facility in Orange. It also owns a propane air facility in
Trumbull and certain properties in Bridgeport and New Haven
that were formerly utilized as operating facilities.
Southern leases an LNG plant in Milford. All of such
assets of Southern are located in the State of Connecticut.
Substantially all of Southern's utility properties and
plant are subject to the lien of the indenture and
supplemental indentures securing its first mortgage bonds.
Southern has no producing field, gas manufacturing plants
or pipelines which receive gas at the Connecticut border.
3. During the last calendar year and to date, only Southern has been
an operating public utility company, and the following information, therefore,
relates to it alone:
(a) During the calendar year 1996, Southern sold 32,981,867 MCF
of natural or manufactured gas at retail.
(b) None
(c) During the calendar year 1996, Southern sold 2,784,368 MCF
of natural or manufactured gas outside Connecticut or at the
Connecticut border.
(d) During the calendar year 1996, Southern purchased 35,376,241
MCF of natural or manufactured gas outside Connecticut or at
the Connecticut border.
4. The following information for the reporting period with respect to
the claimant and each interest it holds directly or indirectly in an EWG or
foreign utility company, stating monetary amounts in United States dollars:
(a) None
(b) None
(c) None
(d) None
(e) None
EXHIBIT A
Attached as Exhibit A is a consolidating statement of income and
surplus of the claimant and its subsidiary companies for calendar year 1996,
together with a consolidating balance sheet of the claimant and its
subsidiary companies as of the close of such calendar year.
EXHIBIT B
Financial Data Schedule
Submitted only in electronic format to the Securities and Exchange
Commission.
EXHIBIT C
An organizational chart showing the relationship of each EWG or
foreign utility company to associate companies in the holding-company system.
Not applicable.
The above-named claimant has caused this statement to be duly
executed on its behalf by its authorized officer on this 26th day of
February, 1997.
CONNECTICUT ENERGY CORPORATION
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(Name of Claimant)
By /s/ Vincent L. Ammann, Jr.
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Vincent L. Ammann, Jr., Vice President
and Chief Accounting Officer
(Corporate Seal)
Attest:
/s/ Carol A. Forest
- -----------------------------------------
Carol A. Forest, Vice President, Finance,
Chief Financial Officer and Treasurer
Name, title and address of officer to whom notices and correspondence
concerning this statement should be addressed:
Vincent L. Ammann, Jr., Vice President and Chief Accounting Officer
- -------------------------------------------------------------------
(Name) (Title)
Connecticut Energy Corporation, 855 Main Street, Bridgeport, Connecticut
- ------------------------------------------------------------------------
06604
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(Address)
<TABLE>
CONSOLIDATING INCOME STATEMENT
DECEMBER 31, 1996
(UNAUDITED)
<CAPTION>
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EXHIBIT A
THE CNE
SOUTHERN CNE CNE ENERGY ADJUSTMENTS/
CONNECTICUT VENTURE-TECH, DEVELOPMENT SERVICES CEC ELIMINATIONS TOTAL
ACCOUNT DESCRIPTION GAS COMPANY INC. CORPORATION GROUP, INC. HOLDING DEBIT CREDIT CEC
___________________________________________________________________________________________________________________________________
OPERATING REVENUES $266,191,760 $266,191,760
PURCHASED GAS 144,444,212 144,444,212
___________________________________________________________________________________________________________________________________
GROSS INCOME 121,747,548 121,747,548
OPERATING EXPENSES
OPERATIONS 48,533,415 $ 1,508 $ 19,287 $ 3,857 $111,665 48,669,732
MAINTENANCE 3,650,803 3,650,803
DEPRECIATION/AMORTIZATION 14,926,074 14,926,074
TAXES OTHER THAN INCOME 17,289,737 17,289,737
STATE TAXES - CURRENT 1,495,610 250 250 4,824 1,500,934
FEDERAL INCOME TAXES - CURRENT 4,399,391 12,992 4,412,383
FEDERAL INCOME TAXES - DEFERRED 1,875,303 1,875,303
___________________________________________________________________________________________________________________________________
TOTAL OPERATING EXPENSES 92,170,333 1,508 19,537 4,107 129,481 92,324,966
OPERATING INCOME 29,577,215 (1,508) (19,537) (4,107) (129,481) 29,422,582
ALLOWANCE FOR FUNDS DURING
CONSTRUCTION/EQUITY EARNINGS 145,632 7,910 (208,721) (55,179)
OTHER INCOME, NET (382,740) (67,959) 153,609 $159,900 $ 15,156 (441,834)
LEASED LAND INCOME 15,156 15,156 0
___________________________________________________________________________________________________________________________________
TOTAL INCOME 29,355,263 (1,508) (11,627) (280,787) 24,128 175,056 15,156 28,925,569
INCOME DEDUCTIONS
INTEREST ON LONG-TERM DEBT &
AMORTIZATION 11,444,462 11,444,462
OTHER INTEREST, NET 1,911,234 159,900 1,751,334
MISCELLANEOUS INCOME DEDUCTIONS 184,690 184,690
___________________________________________________________________________________________________________________________________
TOTAL INCOME DEDUCTIONS 13,540,386 159,900 13,380,486
NET INCOME TO COMMON $ 15,814,877 $(1,508) $(11,627) $(280,787) $ 24,128 $175,056 $175,056 $ 15,545,083
============ ======= ======== ========= ======== ======== ======== ============
</TABLE>
<TABLE>
CONNECTICUT ENERGY CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1996
(UNAUDITED)
<CAPTION>
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EXHIBIT A
THE CNE
SOUTHERN CNE CNE ENERGY ADJUSTMENTS/
CONNECTICUT VENTURE-TECH, DEVELOPMENT SERVICES CEC ELIMINATIONS TOTAL
ACCOUNT DESCRIPTION GAS COMPANY INC. CORPORATION GROUP, INC. HOLDING DEBIT CREDIT CEC
________________________________________________________________________________________________________________________________
ASSETS
UTILITY PLANT
INTANGIBLES $ 140,692 $ 140,692
PRODUCTION 2,110,867 2,110,867
STORAGE 6,892,040 6,892,040
DISTRIBUTION 340,958,766 340,958,766
GENERAL 25,845,169 25,845,169
________________________________________________________________________________________________________________________________
SUBTOTAL 375,947,534 375,947,534
CONSTRUCTION WORK IN
PROGRESS 4,731,933 4,731,933
NONUTILITY PROPERTY 2,752,005 $ 103,592 2,855,597
________________________________________________________________________________________________________________________________
TOTAL PP&E 383,431,472 103,592 383,535,064
LESS: ACCUMULATED
DEPRECIATION 120,964,571 15,118 120,979,689
________________________________________________________________________________________________________________________________
NET PP&E 262,466,901 88,474 262,555,375
CURRENT ASSETS
CASH 786,481 $20,472 186,782 $ 4,801,687 5,795,422
ACCOUNTS RECEIVABLE:
TRADE 47,462,589 47,462,589
OTHER 1,012,157 93,874 178,469 1,284,500
INTERCOMPANY 128,940 347 7,530 $ 136,817 0
________________________________________________________________________________________________________________________________
SUBTOTAL 48,603,686 94,221 185,999 136,817 48,747,089
LESS: BAD DEBT ALLOWANCE 2,641,292 2,641,292
________________________________________________________________________________________________________________________________
NET ACCOUNTS RECEIVABLE 45,962,394 94,221 185,999 136,817 46,105,797
UNBILLED REVENUES 8,720,477 8,720,477
UNRECOVERED PURCHASED
GAS COSTS 7,235,442 7,235,442
FUEL STOCK 15,276,041 15,276,041
PREPAID EXPENSES 1,792,226 1,792,226
________________________________________________________________________________________________________________________________
TOTAL CURRENT ASSETS 79,773,061 20,472 281,003 4,987,686 136,817 84,925,405
OTHER ASSETS
INVESTMENT IN SUBSIDIARIES
AND OTHER ASSETS 57,910 1,831,279 96,648,477 96,648,477 1,889,189
UNAMORTIZED DEBT EXPENSE 6,183,309 6,183,309
OTHER DEFERRED DEBITS 76,827,046 484 106,421 364,142 $62,811 77,360,904
________________________________________________________________________________________________________________________________
TOTAL OTHER ASSETS 83,010,355 58,394 1,937,700 97,012,619 62,811 96,648,477 85,433,402
TOTAL ASSETS $425,250,317 $0 $78,866 $2,307,177 $102,000,305 $62,811 $96,785,294 $432,914,182
============ == ======= ========== ============ ======= =========== ============
</TABLE>
<TABLE>
CONNECTICUT ENERGY CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1996
(UNAUDITED)
<CAPTION>
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EXHIBIT A
THE CNE
SOUTHERN CNE CNE ENERGY ADJUSTMENTS/
CONNECTICUT VENTURE-TECH, DEVELOPMENT SERVICES CEC ELIMINATIONS TOTAL
ACCOUNT DESCRIPTION GAS COMPANY INC. CORPORATION GROUP, INC. HOLDING DEBIT CREDIT CEC
____________________________________________________________________________________________________________________________________
CAPITALIZATION
COMMON STOCK $ 18,760,951 $ 1,000 $ 1,000 $ 9,044,437 $ 18,762,951 $ 9,044,437
CAPITAL STOCK EXPENSE (705,066) (3,286,766) (3,991,832)
CAPITAL IN EXCESS OF PAR
VALUE 70,799,637 100,000 2,499,000 103,963,469 81,706,854 95,655,252
RETAINED EARNINGS 44,555,658 $(1,508) (24,422) (276,930) (7,771,688) $3,821,328 40,302,438
_________________________________________________________________________________________________________________________________
SUBTOTAL 133,411,180 (1,508) 76,578 2,223,070 101,949,452 100,469,805 3,821,328 141,010,295
LONG-TERM DEBT 138,727,500 138,727,500
_________________________________________________________________________________________________________________________________
TOTAL CAPITALIZATION 272,138,680 (1,508) 76,578 2,223,070 101,949,452 100,469,805 3,821,328 279,737,795
CURRENT LIABILITIES
SHORT-TERM BORROWINGS 37,100,000 37,100,000
CURRENT PORTION OF LONG-TERM
DEBT 594,500 594,500
ACCOUNTS PAYABLE 19,506,300 19,506,300
REFUNDS DUE CUSTOMERS 156,593 156,593
FEDERAL CORPORATE TAXES 4,328,935 1,414 4,330,349
STATE CORPORATE TAXES 1,051,828 525 1,052,353
PROPERTY TAXES 4,138,081 4,138,081
OTHER ACCRUED TAXES 3,700,915 3,700,915
ACCOUNTS PAYABLE-INTERCOMPANY 1,508 2,288 84,107 48,914 136,817 0
INTEREST PAYABLE 2,886,467 2,886,467
OTHER ACCRUED LIABILITIES 4,131,234 4,131,234
CUSTOMERS' DEPOSITS 1,955,509 1,955,509
_________________________________________________________________________________________________________________________________
TOTAL CURRENT LIABILITIES 79,550,362 1,508 2,288 84,107 50,853 136,817 79,552,301
OTHER LIABILITIES
DEFERRED FEDERAL INCOME
TAXES 63,186,621 63,186,621
DEFERRED INVESTMENT TAX
CREDITS 3,195,632 3,195,632
OTHER 7,179,022 62,811 7,241,833
_________________________________________________________________________________________________________________________________
TOTAL OTHER LIABILITIES 73,561,275 62,811 73,624,086
TOTAL CAPITALIZATION
& LIABILITIES $425,250,317 $ 0 $78,866 $2,307,177 $102,000,305 $100,606,622 $3,884,139 $432,914,182
============ ====== ======= ========== ============ ============ ========== ============
</TABLE>
<TABLE>
CONNECTICUT ENERGY CORPORATION
CONSOLIDATING STATEMENT OF CHANGES IN RETAINED EARNINGS
(UNAUDITED)
<CAPTION>
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EXHIBIT A
THE CNE
SOUTHERN CNE CNE ENERGY CONNECTICUT
CONNECTICUT VENTURE-TECH, DEVELOPMENT SERVICES ENERGY ADJUSTMENTS/
GAS COMPANY INC. CORPORATION GROUP, INC. CORPORATION ELIMINATIONS CONSOLIDATED
____________________________________________________________________________________________________________________________________
BALANCE - DECEMBER 31, 1995 $40,602,394 $(12,795) $ 3,857 $(7,869,299) $3,821,328 $36,545,485
ADD: NET INCOME 15,814,877 $(1,508) (11,627) (280,787) 24,128 15,545,083
LESS: COMMON STOCK DIVIDENDS 11,861,613 (73,483) 11,788,130
____________________________________________________________________________________________________________________________________
BALANCE - DECEMBER 31, 1996 $44,555,658 $(1,508) $(24,422) $(276,930) $(7,771,688) $3,821,328 $40,302,438
=========== ======= ======== ========= =========== ========== ===========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> OPUR3
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 432,914
<TOTAL-OPERATING-REVENUES> 266,192
<NET-INCOME> 15,545
</TABLE>
