File No. 69-244
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 nonutility subsidiary
operating as an equity holder in an entity formed to
purchase and market natural gas. CNE Development also
brokers the sale of energy products, principally
natural gas.
(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 is a nonutility
subsidiary that provides energy products and services to
commercial and industrial customers.
(iv) CNE Venture-Tech, Inc. 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, Inc. is a nonutility subsidiary that invests in
ventures that offer technologically advanced energy-related
products and operates a service bureau.
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, 1999 Southern had
2,183 miles of main and 124,842 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 subleases a
liquefied natural gas plant in Milford to its nonutility affiliate,
CNE Energy, who, in turn, subleases the plant to Total Peaking
Services, LLC, a wholly-owned affiliate of CNE Energy. 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 1999, Southern sold 23,705,771 Mcf of natural
or manufactured gas at retail, earning revenues of $204,441,929. All
of said sales were made in the state of Connecticut.
(b) None
(c) During the calendar year 1999, Southern made the following sales of
natural or manufactured gas outside Connecticut or at the Connecticut
border:
State Revenues Mcf
----- -------- ---
Louisiana $ 88,340 53,942
Massachusetts 13,189 19,823
Mississippi 259,039 158,404
New Jersey 318,534 107,137
New York 9,443 3,228
Texas 88,986 54,680
---------- ---------
$777,531 397,214
(d) Southern accepts in Connecticut offers to sell gas for
delivery in Connecticut. The total amount of purchases in
calendar year 1999 from out-of-state marketers was 8,588,955
Mcf. The commodity cost of said purchases was $13,404,452.
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 1999
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 7th day of February, 2000.
CONNECTICUT ENERGY CORPORATION
------------------------------
(Name of Claimant)
By /s/ Carol A. Forest
-----------------------------------------
Carol A. Forest, Vice President, Finance,
Chief Financial Officer, Treasurer
and Assistant Secretary
(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:
Carol A. Forest, Vice President, Finance, Chief Financial Officer,
Treasurer and Assistant Secretary
- --------------------------------------------------------------------------------
(Name) (Title)
Connecticut Energy Corporation,
855 Main Street, Bridgeport, Connecticut 06604
- --------------------------------------------------------------------------------
(Address)
<TABLE>
CONSOLIDATING INCOME STATEMENT
DECEMBER 31, 1999
(UNAUDITED)
<CAPTION>
EXHIBIT A
CNE
THE CNE ENERGY
SOUTHERN VENTURE- CNE SERVICES ADJUSTMENTS/
CONNECTICUT TECH, DEVELOPMENT GROUP, CEC ELIMINATIONS TOTAL
ACCOUNT DESCRIPTION GAS COMPANY INC. CORPORATION INC. HOLDING DEBIT CREDIT CEC
_______________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $228,828,815 $1,734,238 $2,493,273 $5,668,058 $3,091,855 $235,632,529
PURCHASED GAS 103,568,794 1,379,582 $ 968,335 103,980,041
_______________________________________________________________________________________________________________________________
GROSS MARGIN 125,260,021 1,734,238 2,493,273 4,288,476 3,091,855 968,335 131,652,488
OPERATING EXPENSES
OPERATIONS <F1> 48,592,274 1,022,966 181,341 949,397 $ 5,217,098 2,097,626 53,865,450
MAINTENANCE 3,759,257 3,759,257
DEPRECIATION/AMORTIZATION 17,099,286 498,254 990 731,241 18,329,771
TAXES OTHER THAN INCOME 15,692,004 18,247 8,620 44,952 53,108 30,894 15,786,037
STATE TAXES - CURRENT (164,887) 14,282 204,386 (364,170) (256,742) (567,131)
STATE TAXES - DEFERRED (22,000) (22,000)
FEDERAL INCOME TAXES - CURRENT 6,218,882 52,395 769,007 191,561 (1,038,931) 6,192,914
FEDERAL INCOME TAXES - DEFERRED 1,446,248 (51,500) 307,503 1,702,251
_______________________________________________________________________________________________________________________________
TOTAL OPERATING EXPENSES 92,643,064 1,606,144 1,164,344 1,479,481 4,282,036 2,128,520 99,046,549
OPERATING INCOME 32,616,957 128,094 1,328,929 2,808,995 (4,282,036) 3,091,855 3,096,855 32,605,939
ALLOWANCE FOR FUNDS DURING
CONSTRUCTION/EQUITY EARNINGS 113,151 (55,655) 76,425 (1,592,500) (1,458,579)
OTHER INCOME, NET (57) 10,471 17,180 140,420 178,551 346,565 0
OTHER INCOME - MISC., NET (1,066,004) (279,693) 149,333 (1,196,364)
LEASED LAND INCOME 149,333 149,333 0
_______________________________________________________________________________________________________________________________
TOTAL INCOME 31,813,380 82,910 1,422,534 1,077,222 (4,103,485) 3,587,753 3,246,188 29,950,996
INCOME DEDUCTIONS
INTEREST ON LONG-TERM DEBT &
AMORTIZATION 12,035,065 745,259 12,780,324
OTHER INTEREST, NET 609,663 75,568 235,368 346,565 574,034
MISCELLANEOUS INCOME DEDUCTIONS 219,073 219,073
_______________________________________________________________________________________________________________________________
TOTAL INCOME DEDUCTIONS 12,863,801 820,827 235,368 346,565 13,573,431
NET INCOME TO COMMON $18,949,579 $ 82,910 $1,422,534 $ 256,395 $(4,338,853) $3,587,753 $3,592,753 $16,377,565
=========== ========== ========== ========== =========== ========== ========== ===========
<FN>
<F1> Operations expense includes merger-related expenses of $4,337,248. The tax benefit associated with these expenses was
$601,313 and is reflected in the provisions for state and federal income taxes.
</FN>
</TABLE>
<TABLE>
CONNECTICUT ENERGY CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1999
(UNAUDITED)
<CAPTION>
EXHIBIT A
CNE
THE CNE ENERGY
SOUTHERN VENTURE- CNE SERVICES ADJUSTMENTS/
CONNECTICUT TECH, DEVELOPMENT GROUP, CEC ELIMINATIONS TOTAL
ACCOUNT DESCRIPTION GAS COMPANY INC. CORPORATION INC. HOLDING DEBIT CREDIT CEC
_________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
UTILITY PLANT
INTANGIBLES $ 140,692 $ 140,692
PRODUCTION 2,366,097 2,366,097
STORAGE 3,131,772 3,131,772
DISTRIBUTION 386,923,099 386,923,099
GENERAL 31,062,188 31,062,188
____________________________________________________________________________________________________________________________
SUBTOTAL 423,623,848 423,623,848
CONSTRUCTION WORK IN
PROGRESS 3,259,331 3,259,331
NONUTILITY PROPERTY 6,047,695 $ 7,760,332 $ 4,070 $ 253,860 14,065,957
____________________________________________________________________________________________________________________________
TOTAL PP&E 432,930,874 7,760,332 4,070 253,860 440,949,136
LESS: ACCUMULATED
DEPRECIATION 150,735,260 404,474 1,465 84,242 151,225,441
____________________________________________________________________________________________________________________________
NET PP&E 282,195,614 7,355,858 2,605 169,618 289,723,695
CURRENT ASSETS
CASH 1,043,743 226,832 540,845 3,873,780 $ 753,493 6,438,693
ACCOUNTS RECEIVABLE:
TRADE 41,633,698 1,489,971 43,123,669
OTHER 2,696,282 199,866 256,455 607 3,153,210
INTERCOMPANY 1,827,384 454,643 19,566 578,731 7,498,283 $ 3 $ 10,378,610 0
____________________________________________________________________________________________________________________________
SUBTOTAL 46,157,364 654,509 276,021 2,068,702 7,498,890 3 10,378,610 46,276,879
LESS: BAD DEBT ALLOWANCE 2,254,520 2,254,520
____________________________________________________________________________________________________________________________
NET ACCOUNTS RECEIVABLE 43,902,844 654,509 276,021 2,068,702 7,498,890 3 10,378,610 44,022,359
UNBILLED REVENUES 6,348,398 6,348,398
UNRECOVERED PURCHASED
GAS COSTS 11,451,227 11,451,227
FUEL STOCK 6,238,075 3,366,868 9,604,943
PREPAID EXPENSES 2,029,274 105,634 319,933 2,454,841
____________________________________________________________________________________________________________________________
TOTAL CURRENT ASSETS 71,013,561 986,975 816,866 9,629,283 8,252,383 3 10,378,610 80,320,461
OTHER ASSETS
INVESTMENT IN SUBSIDIARIES
AND OTHER ASSETS 0 3,281,086 220,181 4,976,318 134,483,652 134,483,652 8,477,585
UNAMORTIZED DEBT EXPENSE 10,390,930 10,390,930
OTHER DEFERRED DEBITS 102,183,916 46,676 484 12,194,183 333,332 376,209 115,134,800
____________________________________________________________________________________________________________________________
TOTAL OTHER ASSETS 112,574,846 3,327,762 220,665 17,170,501 134,816,984 376,209 134,483,652 134,003,315
TOTAL ASSETS $465,784,021 $11,670,595 $1,040,136 $26,969,402 $143,069,367 $376,212 $144,862,262 $504,047,471
============ =========== ========== =========== ============ ======== ============ ============
</TABLE>
<TABLE>
CONNECTICUT ENERGY CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1999
(UNAUDITED)
<CAPTION>
EXHIBIT A
CNE
THE CNE ENERGY
SOUTHERN VENTURE- CNE SERVICES ADJUSTMENTS/
CONNECTICUT TECH, DEVELOPMENT GROUP CEC ELIMINATIONS TOTAL
ACCOUNT DESCRIPTION GAS COMPANY INC. CORPORATION INC. HOLDING DEBIT CREDIT CEC
________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CAPITALIZATION
COMMON STOCK $ 18,760,951 $ 1,000 $ 1,000 $ 1,000 $ 10,374,483 $ 18,763,951 $ 10,374,483
CAPITAL STOCK EXPENSE (636,182) (4,442,074) (5,078,256)
CAPITAL IN EXCESS OF PAR
VALUE 95,023,812 7,550,000 100,000 8,559,000 136,538,562 119,541,029 128,230,345
RETAINED EARNINGS 57,917,143 (81,170) 889,654 2,819,010 (12,584,539) $3,821,328 52,781,426
RETAINED EARNINGS - MINIMUM
PENSION LIABILITY 219,611 (219,611)
_____________________________________________________________________________________________________________________________
SUBTOTAL 171,065,724 7,469,830 990,654 11,379,010 129,886,432 138,524,591 3,821,328 186,088,387
LONG-TERM DEBT 139,000,000 8,665,967 147,665,967
_____________________________________________________________________________________________________________________________
TOTAL CAPITALIZATION 310,065,724 7,469,830 990,654 20,044,977 129,886,432 138,524,591 3,821,328 333,754,354
CURRENT LIABILITIES
SHORT-TERM BORROWINGS 27,400,000 12,700,000 40,100,000
CURRENT PORTION OF
LONG-TERM DEBT 1,584,811 1,584,811
ACCOUNTS PAYABLE 15,431,386 24,378 1,916 28,272 458,354 15,027,598
REFUNDS DUE CUSTOMERS 449,954 449,954
FEDERAL CORPORATE TAXES 2,958,461 (560) 8,584 117,315 (74,377) 3,009,423
STATE CORPORATE TAXES 475,615 28,469 2,781 66,829 51,609 625,303
OTHER ACCRUED TAXES 3,567,152 4,092 3,571,244
ACCOUNTS PAYABLE-
INTERCOMPANY 501,964 4,133,179 36,201 4,911,734 337,178 10,378,610 458,354 0
INTEREST PAYABLE 2,523,954 80,464 2,604,418
OTHER ACCRUED LIABILITIES 11,947,018 11,207 168,525 3 12,126,753
CUSTOMERS' DEPOSITS 1,495,702 1,495,702
_____________________________________________________________________________________________________________________________
TOTAL CURRENT LIABILITIES 66,751,206 4,200,765 49,482 6,789,425 13,182,935 10,836,964 458,357 80,595,206
OTHER LIABILITIES
DEFERRED FEDERAL INCOME
TAXES 75,580,366 109,000 146,408 75,542,958
DEFERRED STATE INCOME
TAXES 26,000 26,000
DEFERRED INVESTMENT TAX
CREDITS 2,318,636 2,318,636
OTHER 11,068,089 742,228 11,810,317
_____________________________________________________________________________________________________________________________
TOTAL OTHER LIABILITIES 88,967,091 135,000 146,408 742,228 89,697,911
TOTAL CAPITALIZATION
& LIABILITIES $465,784,021 $11,670,595 $1,040,136 $26,969,402 $143,069,367 $149,507,963 $5,021,913 $504,047,471
============ =========== ========== =========== ============ ============ ========== ============
</TABLE>
<TABLE>
CONNECTICUT ENERGY CORPORATION
CONSOLIDATING STATEMENT OF CHANGES IN RETAINED EARNINGS
(UNAUDITED)
<CAPTION>
EXHIBIT A
CNE
THE CNE ENERGY
SOUTHERN VENTURE- CNE SERVICES CONNECTICUT
CONNECTICUT TECH, DEVELOPMENT GROUP, ENERGY ADJUSTMENTS/
GAS COMPANY INC. CORPORATION INC. CORPORATION ELIMINATIONS CONSOLIDATED
______________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C>
BALANCE - DECEMBER 31, 1998 $52,883,506 $(164,080) $ 167,120 $2,562,615 $ (8,964,663) $3,348,464 $49,832,962
ADD: NET INCOME 18,949,579 82,910 1,422,534 256,395 (4,338,853) 5,000 16,377,565
LESS: COMMON STOCK DIVIDENDS 13,915,942 700,000 (718,977) 13,896,965
ADJUSTMENT FOR MINIMUM
PENSION LIABILITY 253,253 253,253
REVERSAL OF PRIOR PERIOD
CONSOLIDATING ACCRUAL (5,000) (5,000)
_____________________________________________________________________________________________________________________________
BALANCE - DECEMBER 31, 1999 $57,917,143 $ (81,170) $ 889,654 $2,819,010 $(12,584,539) $3,601,717 $52,561,815
=========== ========= ========== ========== ============ ========== ===========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> OPUR3
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENT OF INCOME AND BALANCE SHEET OF CONNECTICUT ENERGY
CORPORATION AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> DEC-31-1999
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 504,047
<TOTAL-OPERATING-REVENUES> 235,633
<NET-INCOME> 16,378
</TABLE>
