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 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 is a nonregulated subsidiary that was formed in
December 1994 and is 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 that was formed in October 1996. CNE Venture-Tech
focuses on investing in technology companies and participating
in ventures with technology partners serving the utility
industry.
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, 1997, Southern had 2,138 miles of main and
123,516 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 1997, Southern sold 31,984,600 MCF
of natural or manufactured gas at retail.
(b) None
(c) During the calendar year 1997, Southern sold 5,520,823 MCF
of natural or manufactured gas outside Connecticut or at the
Connecticut border.
(d) During the calendar year 1997, Southern purchased 30,842,507
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 1997,
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, 1998.
CONNECTICUT ENERGY CORPORATION
------------------------------
(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/ Samuel W. Bowlby
- -----------------------------------------
Samuel W. Bowlby, Vice President, General
Counsel and Secretary
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
- ------------------------------------------------------------------------------
(Address)
<TABLE>
CONSOLIDATING INCOME STATEMENT
DECEMBER 31, 1997
(UNAUDITED)
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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 $253,642,597 $253,642,597
PURCHASED GAS 134,838,815 134,838,815
__________________________________________________________________________________________________________________________________
GROSS MARGIN 118,803,782 118,803,782
OPERATING EXPENSES
OPERATIONS 45,697,940 $ 90,410 $ 42,809 $ 582,857 46,414,016
MAINTENANCE 3,601,519 3,601,519
DEPRECIATION/AMORTIZATION 15,993,591 2,742 $106,944 16,103,277
TAXES OTHER THAN INCOME 13,311,555 45,324 13,356,879
STATE TAXES - CURRENT 1,732,261 120 14,810 64,990 17,129 1,829,310
FEDERAL INCOME TAXES - CURRENT 6,386,902 (43,425) 46,456 145,639 50,425 6,585,997
FEDERAL INCOME TAXES - DEFERRED 1,664,211 1,664,211
__________________________________________________________________________________________________________________________________
TOTAL OPERATING EXPENSES 88,387,979 49,847 104,075 362,897 650,411 89,555,209
OPERATING INCOME 30,415,803 (49,847) (104,075) (362,897) (650,411) 29,248,573
ALLOWANCE FOR FUNDS DURING
CONSTRUCTION/EQUITY EARNINGS 144,000 (29,416) 210,865 81,582 407,031
OTHER INCOME, NET 522,781 815,154 266,681 $285,419 $ 16,822 1,336,019
LEASED LAND INCOME 16,822 16,822 0
__________________________________________________________________________________________________________________________________
TOTAL INCOME 31,099,406 (79,263) 106,790 533,839 (383,730) 302,241 16,822 30,991,623
INCOME DEDUCTIONS
INTEREST ON LONG-TERM DEBT &
AMORTIZATION 12,306,587 12,306,587
OTHER INTEREST, NET 1,580,020 285,419 1,294,601
MISCELLANEOUS INCOME DEDUCTIONS 191,656 191,656
__________________________________________________________________________________________________________________________________
TOTAL INCOME DEDUCTIONS 14,078,263 285,419 13,792,844
NET INCOME TO COMMON $ 17,021,143 $(79,263) $106,790 $533,839 $(383,730) $302,241 $302,241 $ 17,198,779
============ ======== ======== ======== ========= ======== ======== ============
</TABLE>
<TABLE>
CONNECTICUT ENERGY CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
(UNAUDITED)
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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 2,271,513 2,271,513
STORAGE 7,403,087 7,403,087
DISTRIBUTION 361,777,939 361,777,939
GENERAL 28,735,517 28,735,517
________________________________________________________________________________________________________________________________
SUBTOTAL 400,328,748 400,328,748
CONSTRUCTION WORK IN
PROGRESS 4,624,292 4,624,292
NONUTILITY PROPERTY 2,734,070 $1,195,084 $ 107,044 4,036,198
________________________________________________________________________________________________________________________________
TOTAL PP&E 407,687,110 1,195,084 107,044 408,989,238
LESS: ACCUMULATED
DEPRECIATION 134,360,883 49 35,412 134,396,344
________________________________________________________________________________________________________________________________
NET PP&E 273,326,227 1,195,035 71,632 274,592,894
CURRENT ASSETS
CASH 1,010,481 107,230 $147,128 634,968 $ 5,233,373 7,133,180
ACCOUNTS RECEIVABLE:
TRADE 48,618,900 63,213 48,682,113
OTHER 1,615,768 178,196 13,686 1,807,650
INTERCOMPANY 109,193 1,483 4,631 119,187 2,274 $ 236,768 0
________________________________________________________________________________________________________________________________
SUBTOTAL 50,343,861 1,483 4,631 360,596 15,960 236,768 50,489,763
LESS: BAD DEBT ALLOWANCE 2,940,065 2,940,065
________________________________________________________________________________________________________________________________
NET ACCOUNTS RECEIVABLE 47,403,796 1,483 4,631 360,596 15,960 236,768 47,549,698
UNBILLED REVENUES 7,690,880 7,690,880
UNRECOVERED PURCHASED
GAS COSTS 8,266,258 8,266,258
FUEL STOCK 13,931,405 13,931,405
PREPAID EXPENSES 1,527,524 4,740 1,532,264
________________________________________________________________________________________________________________________________
TOTAL CURRENT ASSETS 79,830,344 108,713 151,759 1,000,304 5,249,333 236,768 86,103,685
OTHER ASSETS
INVESTMENT IN SUBSIDIARIES
AND OTHER ASSETS 1,003,469 104,904 1,350,083 122,623,652 122,623,652 2,458,456
UNAMORTIZED DEBT EXPENSE 5,978,944 5,978,944
OTHER DEFERRED DEBITS 82,798,624 51,181 484 841,663 640,530 $84,597 84,417,079
________________________________________________________________________________________________________________________________
TOTAL OTHER ASSETS 88,777,568 1,054,650 105,388 2,191,746 123,264,182 84,597 122,623,652 92,854,479
TOTAL ASSETS $441,934,139 $2,358,398 $257,147 $3,263,682 $128,513,515 $84,597 $122,860,420 $453,551,058
============ ========== ======== ========== ============ ======= ============ ============
</TABLE>
<TABLE>
CONNECTICUT ENERGY CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
(UNAUDITED)
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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 $ 1,000 $ 10,227,063 $ 18,763,951 $ 10,227,063
CAPITAL STOCK EXPENSE (636,182) (4,282,180) (4,918,362)
CAPITAL IN EXCESS OF PAR
VALUE 95,023,812 1,750,000 100,000 2,499,000 131,790,973 107,681,029 123,482,756
UNEARNED COMPENSATION (1,261,281) (1,261,281)
RETAINED EARNINGS 49,082,001 (80,771) 82,368 256,909 (8,068,229) $3,821,328 45,093,606
MINIMUM PENSION LIABILITY 427,469 (427,469)
_______________________________________________________________________________________________________________________________
SUBTOTAL 162,230,582 1,670,229 183,368 2,756,909 128,406,346 126,872,449 3,821,328 172,196,313
LONG-TERM DEBT 134,073,000 134,073,000
_______________________________________________________________________________________________________________________________
TOTAL CAPITALIZATION 296,303,582 1,670,229 183,368 2,756,909 128,406,346 126,872,449 3,821,328 306,269,313
CURRENT LIABILITIES
SHORT-TERM BORROWINGS 25,900,000 25,900,000
CURRENT PORTION OF
LONG-TERM DEBT 4,654,500 4,654,500
ACCOUNTS PAYABLE 15,455,584 652,888 276 16,108,748
REFUNDS DUE CUSTOMERS 3,455,732 3,455,732
FEDERAL CORPORATE TAXES 6,042,852 (41,972) 50,921 252,447 38,363 6,342,611
STATE CORPORATE TAXES 1,239,165 14,976 74,886 12,736 1,341,763
PROPERTY TAXES 0
OTHER ACCRUED TAXES 3,607,181 67,601 3,674,782
ACCOUNTS PAYABLE-
INTERCOMPANY 9,652 7,882 179,164 40,070 236,768 0
INTEREST PAYABLE 2,802,722 2,802,722
OTHER ACCRUED LIABILITIES 4,346,329 16,000 4,362,329
CUSTOMERS' DEPOSITS 1,878,165 1,878,165
_______________________________________________________________________________________________________________________________
TOTAL CURRENT LIABILITIES 69,382,230 688,169 73,779 506,773 107,169 236,768 70,521,352
OTHER LIABILITIES
DEFERRED FEDERAL INCOME
TAXES 65,600,915 284,980 65,315,935
DEFERRED INVESTMENT TAX
CREDITS 2,903,300 2,903,300
OTHER 7,744,112 797,046 8,541,158
_______________________________________________________________________________________________________________________________
TOTAL OTHER LIABILITIES 76,248,327 284,980 797,046 76,760,393
TOTAL CAPITALIZATION
& LIABILITIES $441,934,139 $2,358,398 $257,147 $3,263,682 $128,513,515 $127,394,197 $4,618,374 $453,551,058
============ ========== ======== ========== ============ ============ ========== ============
</TABLE>
<TABLE>
CONNECTICUT ENERGY CORPORATION
CONSOLIDATING STATEMENT OF CHANGES IN RETAINED EARNINGS
(UNAUDITED)
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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, 1996 $44,555,658 $ (1,508) $(24,422) $(276,930) $(7,771,688) $3,821,328 $40,302,438
ADD: NET INCOME 17,021,143 (79,263) 106,790 533,839 (383,730) 17,198,779
LESS: COMMON STOCK DIVIDENDS 12,494,800 (87,189) 12,407,611
_________________________________________________________________________________________________________________________
BALANCE - DECEMBER 31, 1997 $49,082,001 $(80,771) $ 82,368 $ 256,909 $(8,068,229) $3,821,328 $45,093,606
=========== ======== ======== ========= =========== ========== ===========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> OPUR3
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 453,551
<TOTAL-OPERATING-REVENUES> 253,643
<NET-INCOME> 17,199
</TABLE>
