Form U -13 - 60
Mutual and Subsidiary Service Companies
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1993 and Ending December 31, 1993
TO THE
U. S. SECURITIES AND EXCHANGE COMMISSION
OF
NORTHEAST NUCLEAR ENERGY COMPANY
A Subsidiary Service Company
Date of Incorporation - November 14, 1950
State of Soverign 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 W. Noyes, 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
(Paragraph 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, (Paragraph 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.
LISTINGS 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 Property 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 VII 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 Liabilities 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 Nonassociated 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 XVII 35
Description of Reports or Statements
- - ------------------------------------
Organization Chart 36
Methods of Allocation 37
Annual Statement of Compensation for
Use of Capital Billed 38
Signature Page 39
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY 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
------- --------------------------------------------------------- ------------- -----------
1993 1992
(Thousands of Dollars)
<S> <C> <C>
SERVICE COMPANY PROPERTY
------------------------
101 Service company property (Schedule II) 15,596 15,430
107 Construction work in progress (Schedule II) 11,803 801
----------- -----------
Total Property 27,399 16,231
----------- -----------
108 Less accumulated provision for depreciation and
amortization of service company property (Schedule III) 6,700 6,074
----------- -----------
Net Service Company Property 20,699 10,157
----------- -----------
INVESTMENTS
-----------
123 Investments in associate companies (Schedule IV) - -
124 Other investments (Schedule IV) - -
----------- -----------
Total Investments - -
----------- -----------
CURRENT AND ACCRUED ASSETS
--------------------------
131 Cash 6 18
134 Special deposits - -
135 Working funds 8 8
136 Temporary cash investments (Schedule IV) - -
141 Notes receivable - -
143 Accounts receivable 1,396 4,748
144 Accumulated provision of uncollectible accounts - -
146 Accounts receivable from associate companies (Schedule V) 44,887 55,809
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies 72,439 65,384
163 Stores expense undistributed (Schedule VII) 136 365
165 Prepayments 4,326 4,485
174 Miscellaneous current and accrued assets (Schedule VIII) - -
----------- -----------
Total Current and Accrued Assets 123,198 130,817
----------- -----------
DEFERRED DEBITS
---------------
181 Unamortized debt expense 88 8
184 Clearing accounts 4 9
186 Miscellaneous deferred debits (Schedule IX) 4,133 5,534
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes 2,827 -
----------- -----------
Total Deferred Debits 7,052 5,551
----------- -----------
TOTAL ASSETS AND OTHER DEBITS 150,949 146,525
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY 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
------- --------------------------------------------------------- ------------- -----------
1993 1992
(Thousands of Dollars)
<S> <C> <C>
PROPRIETARY CAPITAL
-------------------
201 Common stock issued (Schedule XI) 15 15
211 Miscellaneous paid-in-capital (Schedule XI) 15,350 15,350
215 Appropriated retained earnings (Schedule XI) - -
216 Unappropriated retained earnings (Schedule XI) 1,004 1,036
----------- -----------
Total Proprietary Capital 16,369 16,401
----------- -----------
LONG-TERM DEBT
--------------
223 Advances from associate companies (Schedule XII) - -
224 Other long-term debt (Schedule XII) 25,000 -
225 Unamortized premium on long-term debt - -
226 Unamortized discount on long-term debt-debit - -
----------- -----------
Total Long-Term Debt 25,000 -
----------- -----------
CURRENT AND ACCRUED LIABILITIES
-------------------------------
231 Notes payable - -
232 Accounts payable 25,333 28,476
233 Notes payable to associate companies (Schedule XIII) 7,500 16,000
234 Accounts payable to associate companies (Schedule XIII) 4,324 13,171
236 Taxes accrued 5,191 5,741
237 Interest accrued - 106
238 Dividends declared - -
241 Tax collections payable 392 505
242 Miscellaneous current and accrued - -
liabilities (Schedule XIII) 52,678 50,657
----------- -----------
Total Current and Accrued Liabilities 95,418 114,656
----------- -----------
DEFERRED CREDITS
----------------
253 Other deferred credits 13,359 6,519
255 Accumulated deferred investment tax credits 803 870
----------- -----------
Total Deferred Credits 14,162 7,389
----------- -----------
282 ACCUMULATED DEFERRED INCOME TAXES - 8,079
--------------------------------- ----------- -----------
TOTAL LIABILITES AND PROPRIETARY CAPITOL 150,949 146,525
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
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)
SERVICE COMPANY PROPERTY
------------------------
Account
-------
<S> <C> <C> <C> <C> <C>
301 ORGANIZATION
303 MISCELLANEOUS INTANGIBLE PLANT
304 LAND AND LAND RIGHTS
305 STRUCTURES AND IMPROVEMENTS
306 LEASEHOLD IMPROVEMENTS
307 EQUIPMENT (2)
308 OFFICE FURNITURE AND EQUIPMENT
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT
310 AIRCRAFT AND AIRPORT EQUIPMENT
311 OTHER SERVICE COMPANY
PROPERTY (3)
321 STRUCTURES AND IMPROVEMENTS 11,099 11,099
322 REACTOR PLANT EQUIPMENT
324 ACCESSORY ELECTRIC EQUIPMENT 27 27
325 MISCELLANEOUS POWER PLANT
EQUIPMENT 3,130 166 3,296
391 OFFICE FURNITURE AND EQUIPMENT 1,174 1,174
---------- --------- ----------- ---------- ----------
SUB-TOTAL 15,430 166 15,596
---------- --------- ----------- ---------- ----------
107 CONSTRUCTION WORK IN
PROGRESS (4) 801 11,002 11,803
---------- --------- ----------- ---------- ----------
TOTAL 16,231 11,168 0 0 27,399
========== ========= =========== ========== ==========
-------------------------------------------------------------------------------------------
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
NONE
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)
NONE
- - -----------------------------------------------------------------------------
(3) DESCRIBE OTHER SERVICE COMPANY PROPERTY:
- - -----------------------------------------------------------------------------
(4) DESCRIBE CONSTRUCTION WORK IN PROGRESS:
This account includes simulator upgrade, tools and general plant items.
</TABLE>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
------------------------------------------
- - -----------------------------------------------------------------------------
ADDITIONS OTHER
BALANCE AT CHARGED CHANGES BALANCE
BEGINNING TO RETIRE- ADD AT CLOSE
DESCRIPTION OF YEAR ACCT 403 MENTS (DEDUCT)1/ OF YEAR
- - -----------------------------------------------------------------------------
(Thousands of Dollars)
Account
- - -------
301 ORGANIZATION
303 MISCELLANEOUS
INTANGIBLE PLANT
304 LAND AND LAND RIGHTS
305 STRUCTURES AND
IMPROVEMENTS
306 LEASEHOLD IMPROVEMENTS
307 EQUIPMENT
308 OFFICE FURNITURE AND
FIXTURES
309 AUTOMOBILES, OTHER
VEHICLES AND RELATED
GARAGE EQUIPMENT
310 AIRCRAFT & AIRPORT
EQUIPMENT
311 OTHER SERVICE COMPANY
PROPERTY
321 STRUCTURES &
IMPROVEMENTS 3,322 345 0 392 4,059
322 REACTOR PLANT
EQUIPMENT
324 ACCESSORY ELECTRIC
EQUIPMENT 8 1 1 10
325 MISCELLANEOUS POWER
PLANT EQUIPMENT 2,228 133 (353) 2,008
391 OFFICE FURNITURE
& FIXTURES 516 28 79 623
---------- --------- -------- --------- -------
TOTAL 6,074 507 0 119 6,700
========== ========== ======== ========= =======
- - -----------------------------------------------------------------------------
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
Depreciation charged to clearing account. The transfers shown are
to bring account level accumulated depreciation balances into line
with the plant account balances.
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
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)
ACCOUNT 123 - INVESTMENT IN ASSOCIATE COMPANIES
NONE
ACCOUNT 124 - OTHER INVESTMENTS
NONE
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
NONE
----------- ----------
TOTAL - -
=========== ==========
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
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)
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM
ASSOCIATE COMPANIES
Northeast Utilities System Money Pool 5,500 13,500
The Connecticut Light and Power Company 40,006 25,246
Western Massachusetts Electric Company 9,381 5,921
Northeast Utilities Service Company 322 0
Northeast Utilities 600 350
Public Service Company of New Hampshire 0 (130)
---------- -----------
TOTAL 55,809 44,887
========== ===========
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
See page 10A for details.
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
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.
- - -----------------------------------------------------------------------------
DESCRIPTION TOTAL PAYMENTS
- - -----------------------------------------------------------------------------
(Thousands of Dollars)
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
Northeast Utilities 1,650
The Connecticut Light and Power Company 16,767
Western Massachusetts Electric Company 3,894
Northeast Utilities Service Company 2,002
---------
TOTAL 24,313
=========
Convenience payments result primarily from the following items:
Engineering Services 721
Nuclear Fuel 17,669
Computer Equipment & Supplies 210
Federal Income Taxes 1,650
Assessment for Decontamination & Decommissioning Fund 3,345
Miscellaneous (224 items) 718
---------
TOTAL 24,313
=========
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
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)
ACCOUNT 152 - FUEL STOCK EXPENSES
UNDISTRIBUTED
NONE
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
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)
ACCOUNT 163 - STORES EXPENSE
UNDISTRIBUTED
Beginning Balance as of
January 1, 1993 365
-----------
Activity for the year:
Stores expense undistributed 2,069 3,135 5,204
The above stores expenses
are billed back to each of
the companies listed below:
The Connecticut Light &
Power Company (1,559) (2,339) (3,898)
Western Massachusetts
Electric Company (372) (558) (930)
Public Service Company of
New Hampshire (20) (31) (51)
Nonassociate Companies (see
page 22 for list of the
companies) (222) (332) (554)
---------- ------------ -----------
Stores expense distributed (2,173) (3,260) (5,433)
---------- ------------ -----------
Net Activity for year (104) (125) (229)
========== ============ ===========
Ending Balance as of
December 31, 1993 136
===========
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
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)
ACCOUNT 174 - MISCELLANEOUS CURRENT AND ACCRUED ASSETS
NONE
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
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)
ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS
Financial system development costs 5,388 3,938
Employee performance payments 39 21
Connecticut sales tax under protest 93 99
Connecticut diesel tax 21 21
External Audit - Millstone Unit No. 3 - 61
Other deferred debits
(3 items in 1993 and 4 items in 1992) (7) (7)
--------- ---------
TOTAL 5,534 4,133
========= =========
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
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)
ACCOUNT 188 - RESEARCH, DEVELOPMENT OR
DEMONSTRATION EXPENDITURES
Services billed from Northeast Utilities Service
Company (an associate company) 0
Miscellaneous (0 items) 0
The above expenses are billed back to each of the
associated companies listed below:
The Connecticut Light and Power Company 0
Western Massachusetts Electric Company 0
Nonassociate Companies (see page 22 for list
of the companies) 0
--------
TOTAL 0
========
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
SCHEDULE XI
PROPRIETARY CAPITAL
- - -----------------------------------------------------------------------------
NUMBER OF PAR OR STATED OUTSTANDING CLOSE OF PERIOD
ACCOUNT CLASS SHARES VALUE ---------------------------
NUMBER OF STOCK AUTHORIZED PER SHARE NO. OF SHARES TOTAL AMOUNT
- - -----------------------------------------------------------------------------
(Thousands
of Dollars)
201 COMMON STOCK
ISSUED 60,000 10.00 1,500 15
- - -----------------------------------------------------------------------------
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 15,350
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS -
---------
TOTAL 15,350
=========
- - -----------------------------------------------------------------------------
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 companies 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
- - -----------------------------------------------------------------------------
(Thousands of Dollars)
ACCOUNT 216-UNAPPROPRIATED
RETAINED EARNINGS 1,036 2,116 2,148 1,004
-------- -------- -------- --------
TOTAL 1,036 2,116 2,148 1,004
======== ======== ======== ========
The net income is all compensation for use of capital.
The dividends are paid as follows:
Rate Percentage Amount of
Per Share Dividend Date Declared Date Paid
---------------------- ----------- ------------- ---------
358.00 537,000 03/08/93 03/31/93
358.00 537,000 06/14/93 06/01/93
358.00 537,000 09/20/93 09/30/93
358.00 537,000 12/13/93 12/31/93
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
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.
- - ------------------------------------------------------------------------------------------------------
TERMS OF OBLIG. DATE BALANCE AT BALANCE AT
CLASS & SERIES OF INTEREST AMOUNT BEGINNING ADD- CLOSE
NAME OF CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR ITIONS DEDUCTIONS(1)OF YEAR
- - ------------------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C>
ACCOUNT 223-ADVANCES
FROM ASSOCIATE COMPANIES: NONE
================================================================
ACCOUNT 224-OTHER
LONG-TERM DEBT:
Prudential Insurance Senior Unsecured 8/2019 7.17% 25,000 0 25,000 0 25,000
Company of America Note
---------------------------------------------------------------
TOTAL OTHER LONG-TERM DEBT 25,000 0 25,000 0 25,000
===============================================================
(1) GIVE AN EXPLANATION OF DEDUCTIONS:
</TABLE>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
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)
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES
Northeast Utilities System Money Pool 16,000 7,500
----------- ----------
TOTAL 16,000 7,500
=========== ==========
- - -----------------------------------------------------------------------------
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
The Connecticut Light and Power Company 953 777
Western Massachusetts Electric Company 25 11
Northeast Utilities Service Company 11,532 3,121
Northeast Utilities 661 415
----------- ----------
TOTAL 13,171 4,324
=========== ==========
- - -----------------------------------------------------------------------------
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES
Millstone 3 Funding Liability 39,833 38,343
Pension Cost 9,420 10,520
Performance Reward Program 490 1,362
Payroll Accrual 883 2,175
Payroll Deductions 17 (2)
Audit Expense 13 12
Severance Payment 0 243
Executive Incentive Compensation 0 26
Other (1 item in 1993 and 3 items in 1992) 1 (1)
----------- ----------
TOTAL 50,657 52,678
=========== ==========
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
-------------------------------------------------
For the Year Ended December 31, 1993
-----------------------
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 Nuclear Energy Company (NNECO 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), and North Atlantic Energy Corporation
(NAEC) are four of the operating subsidiaries of the Northeast Utilities
system (the system) and are wholly owned by NU. NNECO acts as agent in
operating the two nuclear generating facilities (Millstone 1 and 2) that are
wholly owned by CL&P and WMECO. The cost of the two nuclear units is
recorded on the books of the affiliated utility companies in their
proportionate ownership shares. In addition, the company acts as agent in
operating a third nuclear generating unit, Millstone 3, for CL&P, PSNH,
WMECO, and other nonaffiliated utilities. The cost of Millstone 3 is
recorded on the books of CL&P, PSNH, WMECO, and the nonaffiliated utilities
based upon their proportionate ownership shares.
Other wholly owned subsidiaries of NU provide substantial support services to
the system. Northeast Utilities Service Company (NUSCO) supplies centralized
accounting, administrative, data processing, engineering, financial, legal,
operational, planning, purchasing, and other services to the system
companies.
All transactions among affiliated companies are on a recovery of cost basis
which may include amounts representing a return on equity, and are subject to
approval of various federal and state regulatory agencies.
ACCOUNTING CHANGES
Postretirement Benefits Other Than Pensions: The company has adopted the
provisions of Statement of Financial Accounting Standards No. 106,
"Employer's Accounting for Postretirement Benefits Other Than Pensions (SFAS
106), effective January 1, 1993. For information on this change, see Note 6,
"Postretirement Benefits Other Than Pensions."
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),
and it and its subsidiaries, including the company, are subject to the
provisions of the 1935 Act.
REVENUES
The company provides services to the affiliated utility companies on the
basis of recovery of cost plus return on capital, as defined under the terms
of agreements, which have been approved by various federal and state
regulatory commissions having jurisdiction over operations of the company and
the affiliated utility companies.
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. Except for major facilities,
depreciation factors are applied to the average plant-in-service during the
period. Major facilities are depreciated from the time they are placed in
service. When plant is retired from service, the original cost of plant,
including costs of removal, less salvage, is charged to the accumulated
provision for depreciation. The depreciation rates for the several classes
of utility plant-in-service are equivalent to a composite rate of 4.3 percent
in 1993 and 5.3 percent in 1992.
2. LEASES
The company has entered into lease agreements with two unaffiliated third
parties for the use of nuclear control room simulators (simulators) for
Millstone 1 and 2, and CL&P's and WMECO's share of the Millstone 3 simulator.
In addition, the company's affiliates have entered into lease agreements for
the use of data processing equipment, office equipment, vehicles and office
space. NNECO is billed for its proportionate share of these leases through
the intercompany billing system. The provisions of these lease agreements
generally provide for renewal options. For the purposes of this report, all
leases are accounted for as operating leases. At December 31, 1993, assuming
those leases which would have been classified as capital leases were
capitalized at the beginning of the lease terms, assets would have increased
by approximately $23.6 million, current liabilities would have increased by
approximately $2.0 million, and long-term obligations would have increased by
approximately $21.6 million. There is no effect on NNECO's results of
operations.
During 1993 NNECO charged approximately $4,819,000 in capital lease rental
payments and $6,960,000 in operating lease rental payments to operating
expense. Interest included in capital lease rental payments was
approximately $2,510,000.
Future minimum rental payments, excluding executory costs such as property
taxes, state use taxes, insurance and maintenance, under long-term
noncancelable leases as of December 31, 1993, are approximately:
Capital Operating
Year Leases Leases
---- ------- ---------
(Thousands of Dollars)
1994. . . . . . . . . . . . . . . . . . . $ 4,366 $ 600
1995. . . . . . . . . . . . . . . . . . . 4,366 600
1996. . . . . . . . . . . . . . . . . . . 4,366 227
1997. . . . . . . . . . . . . . . . . . . 4,195 178
1998. . . . . . . . . . . . . . . . . . . 4,137 106
After 1998. . . . . . . . . . . . . . . . 9,657 142
------- ------
Future minimum lease payments . . . . . . 31,087 $1,853
Less amount representing interest . . . . 9,485 ======
Present value of future minimum -------
lease payments. . . . . . . . . . . . . $21,602
=======
3. SHORT-TERM DEBT
The system companies have various credit lines totaling $485 million. NU,
CL&P, WMECO, Holyoke Water Power Company (HWP), NNECO, and The Rocky River
Realty Company (RRR) have established a revolving credit facility with a
group of 17 banks. Under this facility, the participating companies may
borrow up to an aggregate of $360 million. Individual borrowing limits are
$175 million for NU, $360 million for CL&P, $75 million for WMECO, $8 million
for HWP, $60 million for NNECO, and $15 million for RRR. The system
companies may borrow funds on a short-term revolving basis using either
fixed-rate loans or standby loans. Fixed rates are set using competitive
bidding. Standby-loan rates are based upon several alternative variable
rates. The system companies are obligated to pay a facility fee of
.20 percent of each bank's total commitment under the three-year portion of
the facility, representing 75 percent of the total facility, plus
.135 percent of each bank's total commitment under the 364-day portion of the
facility, representing 25 percent of the total facility. At December 31,
1993, there were $22.5 million of borrowings under the facility, of which
NNECO had no outstanding borrowings.
The Pool provides a more efficient use of the cash resources of the system,
and reduces outside short-term borrowings. NUSCO 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. Investing and borrowing subsidiaries receive or pay interest
based on the average daily Federal Funds rate. Funds may be withdrawn from
or repaid to the Pool at any time without prior notice. However, borrowings
based on loans from NU parent bear interest at NU parent's cost and must be
repaid based upon the terms of NU parent's original borrowing.
Maturities of NNECO's short-term debt borrowings are for periods of three
months or less.
The amount of short-term borrowings that may be incurred by the company is
subject to periodic approval by the SEC under the 1935 Act. Under this
restriction, as of January 1, 1993, the company was authorized to incur
short-term borrowings up to a maximum of $65 million.
4. LONG-TERM DEBT
Detail of long-term debt outstanding is:
December 31,
----------------
1993 1992
----------------------------------------------------------------------
(Thousands of Dollars)
7.17% Senior Notes, due 2019 $25,000 $ -
Less: Amounts due within one year - -
------- --------
Long-Term Debt, net $25,000 -
======= ========
5. PENSION BENEFITS
The company participates in a uniform noncontributory-defined benefit
retirement plan covering all regular system employees (the Plan). Benefits
are based on years of service and employees' highest eligible compensation
during five consecutive years of employment. NNECO's direct-allocated
portion of the system's pension cost, part of which was charged to plant,
approximated $1.1 million in 1993 and $1.8 million in 1992.
Currently, the company funds annually an amount at least equal to that which
will satisfy the requirements of the Employee Retirement Income Security Act
and the Internal Revenue Code. Pension costs are determined using
market-related values of pension assets. Pension assets are invested
primarily in domestic and international equity securities and bonds.
The components of the Plan's net pension cost for the system (excluding PSNH
and North Atlantic Energy Service Corporation in 1992) are:
- - ---------------------------------------------------------------------------
For the Years Ended December 31, 1993 1992
- - ---------------------------------------------------------------------------
(Thousands of Dollars)
Service cost. . . . . . . . . . . . . . . . . $ 59,068 $27,480
Interest cost . . . . . . . . . . . . . . . . 81,456 69,746
Return on plan assets . . . . . . . . . . . . (176,798) (77,232)
Net amortization. . . . . . . . . . . . . . . 65,447 (16,266)
-------- -------
Net pension cost. . . . . . . . . . . . . $ 29,173 $ 3,728
======== =======
For calculating pension cost, the following assumptions were used:
- - ---------------------------------------------------------------------------
For the Years Ended December 31, 1993 1992
- - ---------------------------------------------------------------------------
Discount rate . . . . . . . . . . . . . . . . 8.00% 8.50%
Expected long-term rate of return . . . . . . 8.50 9.00
Compensation/progression rate . . . . . . . . 5.00 6.75
The following table represents the Plan's funded status reconciled to the NU
Consolidated Balance Sheets:
- - ---------------------------------------------------------------------------
At December 31, 1993 1992
- - ---------------------------------------------------------------------------
(Thousands of Dollars)
Accumulated benefit obligation, including
$817,421,000 of vested benefits at
December 31, 1993 and $719,608,000 at
December 31, 1992 . . . . . . . . . . . . . $ 898,788 $ 764,432
========= =========
Projected benefit obligation. . . . . . . . . 1,141,271 1,055,295
Less: Market value of plan assets. . . . . . 1,340,249 1,226,468
--------- ---------
Market value in excess of projected
benefit obligation. . . . . . . . . . . . . . 198,978 171,173
Unrecognized transition amount. . . . . . . . (16,735) (18,277)
Unrecognized prior service costs. . . . . . . 10,287 8,658
Unrecognized net gain . . . . . . . . . . . . (275,043) (214,894)
--------- ---------
Accrued pension liability . . . . . . . . . . $ (82,513) $ (53,340)
========= =========
The following actuarial assumptions were used in calculating the Plan's
year-end funded status:
- - ---------------------------------------------------------------------------
At December 31, 1993 1992
- - ---------------------------------------------------------------------------
Discount rate . . . . . . . . . . . . . . . . 7.75% 8.00
Compensation/progression rate . . . . . . . . 4.75 5.00
The discount rate for 1993 was determined by analyzing the interest rates, as
of December 31, 1993 of long-term, high-quality corporate debt securities
having a duration comparable to the 13.8-year duration of the plan.
During 1993, NU's work force was reduced by approximately 7 percent through a
work force reduction program that involved an early retirement program
and involuntary terminations. NNECO's direct cost of the program, which
approximated $243,000, included severance and other benefits.
6. POSTRETIREMENT BENEFITS OTHER THAN PENSIONS
The company provides 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 leaving the company
who are otherwise eligible to retire and have met specified service
requirements. Through December 31, 1992, the company recognized the cost of
these benefits as they were paid. In December 1990, the FASB issued SFAS
106. This new standard requires that the expected cost of postretirement
benefits, primarily health and life insurance benefits, must be charged to
expense during the years that eligible employees render service. Effective
January 1, 1993, the company adopted SFAS 106 on a prospective basis. Total
health care and life insurance cost, part of which were deferred or charged
to plant, approximated $1.5 million in 1993 and $87,000 in 1992.
On January 1, 1993, the accumulated postretirement benefit obligation (APBO)
represented the company's prior-service obligation upon the adoption of SFAS
106. As allowed by SFAS 106, the company is amortizing its APBO of
approximately $6.9 million over a 20-year period. For current employees and
certain retirees, the total SFAS 106 benefit is limited to two times the 1993
health care costs. The SFAS 106 obligation has been calculated based on this
assumption.
During 1993, the company began funding SFAS 106 postretirement costs through
external trusts. The company is funding annually amounts equal to the SFAS
106 costs for the year which also are tax-deductible under the Internal
Revenue Code. The trust assets are invested primarily in equity securities
and bonds.
The following table represents the plan's funded status reconciled to the
Balance Sheet at December 31, 1993:
(Thousands of Dollars)
Accumulated postretirement
benefit obligation of:
Retirees. . . . . . . . . . . . . . . . $(2,712)
Fully eligible active employees . . . . (31)
Active employees not eligible
to retire . . . . . . . . . . . . . . . (3,698)
-------
Total accumulated postretirement
benefit obligation . . . . . . . . . . (6,441)
Less: Market value of plan assets. . . 1,433
-------
Accumulated postretirement benefit
obligation in excess of plan assets . (5,008)
Unrecognized transition amount. . . . . 5,268
Unrecognized net gain . . . . . . . . . (64)
-------
Prepaid postretirement benefit
cost . . . . . . . . . . . . . . . . . $ 196
=======
The components of health care and life insurance costs for the year ended
December 31, 1993 are:
(Thousands of Dollars)
Service cost. . . . . . . . . . . . . . $ 611
Interest cost . . . . . . . . . . . . . 555
Return on plan assets . . . . . . . . . (34)
Net amortization. . . . . . . . . . . . 323
-------
Net health care and life insurance
costs. . . . . . . . . . . . . . . . . $ 1,455
=======
For measurement purposes, an 11.1-percent annual rate of increase in the per
capita cost of covered health care benefits was assumed for 1993; the rate
was assumed to decrease to 5.4 percent for 2002. The effect of increasing
the assumed health care cost trend rates by one percentage point in each year
would increase the accumulated postretirement benefit obligation as of
December 31, 1993 by $418,000 and the aggregate of the service and interest
cost components of net periodic postretirement benefit cost for the year then
ended by $65,000.
The weighted-average discount rate used in determining the accumulated
postretirement benefit obligation was 7.75 percent. The discount rate for
1993 was determined by analyzing the interest rates, as of December 31, 1993,
of the long-term, high-quality corporate debt securities having a duration
comparable to that of the plan. The trust holding the plan assets is subject
to federal income taxes at a 35-percent tax rate. The expected long-term
rate of return on plan assets after estimated taxes was 5.00 percent for
health assets and 8.50 percent for life assets.
7. COMMITMENTS AND CONTINGENCIES
CONSTRUCTION PROGRAM
The construction program is subject to periodic review and revision. Actual
construction expenditures may vary from such estimates due to factors such as
revised estimates, inflation, revised regulations, delays, the availability
and cost of capital, and actions by regulatory bodies. The company currently
forecasts construction program expenditures of $13.6 million for the years
1994-1998, including $12.5 million for 1994.
8. FAIR VALUE OF FINANCIAL INSTRUMENTS
The following methods and assumptions were used to estimate the fair value of
each of the following financial instruments:
Cash and special deposits: The carrying amount approximates fair value.
Long-term debt: The fair value of NNECO's fixed-rate security is based upon
the quoted market price for the issue or similar issues. At December 31,
1993, the fair value of NNECO's fixed-rate security was $25 million.
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
FOR THE YEAR ENDED DECEMBER 31, 1993
SCHEDULE XV
COMPARATIVE INCOME STATEMENT
- - -----------------------------------------------------------------------------
ACCOUNT DESCRIPTION 1993 1992
- - -----------------------------------------------------------------------------
(Thousands of Dollars)
INCOME
------
457 Services rendered to associate companies 317,417 329,068
458 Services rendered to nonassociate companies 54,433 38,357
421 Miscellaneous income or loss 275 535
--------- ---------
Total Income 372,125 367,960
--------- ---------
EXPENSE
-------
Nuclear Power Expenses
517 Operation Supervision and Engineering 61,586 55,804
519 Coolants and Water 7,771 6,328
520 Steam Expenses 24,838 25,992
523 Electric Expenses 5,862 5,226
524 Miscellaneous Nuclear Power Expenses 76,466 87,088
525 Rents 6,060 5,992
528 Maintenance Supervision and Engineering 19,317 17,121
529 Maintenance of Structures 13,055 11,678
530 Maintenance of Reactor Plant Equipment 46,396 46,785
531 Maintenance of Electric Plant 30,451 38,018
532 Maintenance of Miscellaneous Nuclear Plant 1,813 1,305
Transmission Expenses
560 Operation Supervision and Engineering 0 17
562 Station Expenses 1,927 2,175
566 Miscellaneous Transmission Expenses 0 329
568 Maintenance Supervision and Engineering 0 0
569 Maintenance of Structures 0 0
570 Maintenance of Station Equipment 515 464
Administrative and General Expenses
920 Salaries and wages 10,189 10,717
921 Office supplies and expenses 4,741 4,846
922 Administrative expense transferred-credit 0 0
923 Outside services employed 3,880 3,556
924 Property insurance 9,681 9,279
925 Injuries and damages 1,868 1,686
926 Employee pensions and benefits 19,935 12,972
928 Regulatory commission expense 35 45
930.1General advertising expenses 0 0
930.2Miscellaneous general expenses 616 641
931 Rents 4,284 4,224
932 Maintenance of structures and equipment 1,284 986
All other expenses
403 Depreciation and amortization expense 507 544
408 Taxes other than income taxes 13,758 7,830
409 Income taxes 2,881 2,955
410 Provision for deferred income taxes 1,338 12
411 Provision for deferred income taxes-credit (3,011) (1,663)
411.5 Investment tax credit (68) (59)
426.1 Donations 42 112
426.5 Other deductions 1,375 1,048
427 Interest on long-term debt (100) 1,252
430 Interest on debt to associate companies 322 160
431 Other interest expense 395 371
--------- --------
Total Expense 370,009 365,836
--------- --------
Net Income 2,116 2,124
========= ========
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
- - ----------------------------------------------------------------------------
DIRECT INDIRECT COMPENSATION TOTAL
COSTS COSTS FOR USE AMOUNT
NAME OF NONASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED
- - -----------------------------------------------------------------------------
(Thousands of Dollars)
457-1 457-2 457-3
--------------------------------------------
The Connecticut Light and
Power Company 251,359 2,106 253,465
Western Massachusetts
Electric Company 58,663 494 59,157
Public Service Company
of New Hampshire 4,785 10 4,795
---------- ---------- ----------- ----------
TOTAL 314,807 0 2,610 317,417
========== ========== =========== ==========
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
- - -----------------------------------------------------------------------------
DIRECT INDIRECT COMPENSATION EXCESS TOTAL
NAME OF NON- COSTS COSTS FOR USE TOTAL OR AMOUNT
ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL COSTS DEFICIENCY BILLED
- - -----------------------------------------------------------------------------
(Thousands of Dollars)
458-1 458-2 458-3 458-4
-------------------------------------------------------
Connecticut Yankee
Atomic Power
Company 322 322 322
Central Maine Power
Company 4,203 8 4,211 4,211
Central Vermont
Public Service 2,921 6 2,927 2,927
Montaup Electric
Company 6,736 13 6,749 6,749
New England Power Co. 20,590 41 20,631 20,631
United Illuminating
Company 6,188 12 6,200 6,200
Fitchburg Gas &
Electric Co. 367 1 368 368
Chicopee Municipal
Electric 2,304 5 2,309 2,309
Massachusetts
Municipal
Wholesale 8,174 16 8,190 8,190
Lyndonville Electric
Department 83 0 83 83
Connecticut Municipal
Electric Coop 1,841 4 1,845 1,845
Vermont Electric Gen
& Trans. 597 1 598 598
------- -------- --------- -------- --------- --------
TOTAL 54,326 0 107 54,433 0 54,433
======= ======== ========= ======== ========= ========
INSTRUCTIONS: Provide a brief description of the services rendered to each
nonassociate company:
The Company acts as agent in operating Millstone Unit 3 for the nonassociate
companies.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
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>
Nuclear Power Expenses
517 OPERATION SUPERVISION
AND ENGINEERING 53,957 0 53,957 7,629 0 7,629
519 COOLANTS AND WATER 6,842 0 6,842 929 0 929
520 STEAM EXPENSES 21,562 0 21,562 3,276 0 3,276
523 ELECTRIC EXPENSES 5,086 0 5,086 776 0 776
524 MISCELLANEOUS NUCLEAR
POWER EXPENSES 68,255 0 68,255 8,211 0 8,211
525 RENTS 5,925 0 5,925 (200) 0 (200)
528 MAINTENANCE SUPERVISION
AND ENGINEERING 16,864 0 16,864 2,453 0 2,453
529 MAINTENANCE OF STRUCTURES 10,969 0 10,969 2,086 0 2,086
530 MAINTENANCE OF REACTOR
PLANT EQUIPMENT 35,054 0 35,054 11,342 0 11,342
531 MAINTENANCE OF ELECTRIC PLANT 23,902 0 23,902 6,549 0 6,549
532 MAINTENANCE OF MISCELLANEOUS
NUCLEAR PLANT 1,613 0 1,613 200 0 200
Transmission Expenses
560 OPERATION SUPERVISION
AND ENGINEERING 0 0 0 0 0 0
562 STATION EXPENSES 157 0 157 1,770 0 1,770
566 MISCELLANEOUS TRANSMISSION
EXPENSES 0 0 0 0 0 0
568 MAINTENANCE SUPERVISION AND
ENGINEERING 0 0 0 0 0 0
569 MAINTENANCE OF STRUCTURES 0 0 0 0 0 0
570 MAINTENANCE OF STATION
EQUIPMENT 409 0 409 106 0 106
Administrative and General
Expenses
920 SALARIES AND WAGES 8,734 0 8,734 1,455 0 1,455
921 OFFICE SUPPLIES AND EXPENSES 4,075 0 4,075 666 0 666
922 ADMINISTRATIVE EXPENSE
TRANSFERRED-CREDIT 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 3,445 0 3,445 435 0 435
924 PROPERTY INSURANCE 8,551 0 8,551 1,130 0 1,130
925 INJURIES AND DAMAGES 1,601 0 1,601 267 0 267
926 EMPLOYEE PENSIONS AND BENEFITS 17,447 0 17,447 2,488 0 2,488
928 REGULATORY COMMISSION EXPENSE 31 0 31 4 0 4
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 537 0 537 79 0 79
931 RENTS 3,622 0 3,622 662 0 662
932 MAINTENANCE OF STRUCTURES
AND EQUIPMENT 1,130 0 1,130 154 0 154
All other expenses
403 DEPRECIATION AND AMORTIZATION
EXPENSES 373 0 373 134 0 134
408 TAXES OTHER THAN INCOME TAXES 12,124 0 12,124 1,634 0 1,634
409 INCOME TAXES 2,881 0 2,881 0 0 0
410 PROVISION FOR DEFERRED INCOME
TAXES 1,338 0 1,338 0 0 0
411 PROVISION FOR DEFERRED INCOME
TAXES-CREDIT (3,011) 0 (3,011) 0 0 0
411.5 INVESTMENT TAX CREDIT (68) 0 (68) 0 0 0
426.1 DONATIONS 37 0 37 5 0 5
426.5 OTHER DEDUCTIONS 1,289 0 1,289 86 0 86
427 INTEREST ON LONG-TERM DEBTS 0 0 0 0 0 0
430 INTEREST ON DEBT TO ASSOCIATE
COMPANIES 0 0 0 0 0 0
431 OTHER INTEREST EXPENSE 353 0 353 (1) 0 (1)
- - ---------------------------------------------------------------------------------------------------
SUBTOTAL EXPENSES = 315,084 0 315,084 54,325 0 54,325
COMPENSATION FOR USE OF CAPITAL =
427 INTEREST ON LONG-TERM DEBTS (100) 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 322 0
431 OTHER INTEREST EXPENSE 43 0
525 RENTS 228 107
----------- ---------
TOTAL EXPENSES = 315,577 54,432
421 MISCELLANEOUS INCOME - CREDIT (276) 0 (276) 1 0 1
NET INCOME 2,116
- - ---------------------------------------------------------------------------------------------------
TOTAL COST OF SERVICE = 314,808 0 317,417 54,326 0 54,433
===================================================================================================
INSTRUCTION: Total cost of service will equal for associate and nonassociate companies the total
amount billed under their separate analysis of billing schedules.
</TABLE>
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------
TOTAL CHARGES FOR SERVICE
- - -----------------------------------------------------------------------------
ACCOUNT DIRECT INDIRECT
NUMBER DESCRIPTION OF ITEMS COST COST TOTAL
- - -----------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C>
Nuclear Power Expenses
517 OPERATION SUPERVISION
AND ENGINEERING 61,586 0 61,586
519 COOLANTS AND WATER 7,771 0 7,771
520 STEAM EXPENSES 24,838 0 24,838
523 ELECTRIC EXPENSES 5,862 0 5,862
524 MISCELLANEOUS NUCLEAR POWER
EXPENSES 76,466 0 76,466
525 RENTS 5,725 0 5,725
528 MAINTENANCE SUPERVISION AND
ENGINEERING 19,317 0 19,317
529 MAINTENANCE OF STRUCTURES 13,055 0 13,055
530 MAINTENANCE OF REACTOR PLANT
EQUIPMENT 46,396 0 46,396
531 MAINTENANCE OF ELECTRIC PLANT 30,451 0 30,451
532 MAINTENANCE OF MISCELLANEOUS
NUCLEAR PLANT 1,813 0 1,813
Transmission Expenses
560 OPERATION SUPERVISION AND
ENGINEERING 0 0 0
562 STATION EXPENSES 1,927 0 1,927
566 MISCELLANEOUS TRANSMISSION
EXPENSES 0 0 0
568 MAINTENANCE SUPERVISION AND
ENGINEERING 0 0 0
569 MAINTENANCE OF STRUCTURES 0 0 0
570 MAINTENANCE OF STATION EQUIPMENT 515 0 515
Administrative and General Expenses
920 SALARIES AND WAGES 10,189 0 10,189
921 OFFICE SUPPLIES AND EXPENSES 4,741 0 4,741
922 ADMINISTRATIVE EXPENSE
TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 3,880 0 3,880
924 PROPERTY INSURANCE 9,681 0 9,681
925 INJURIES AND DAMAGES 1,868 0 1,868
926 EMPLOYEE PENSIONS AND BENEFITS 19,935 0 19,935
928 REGULATORY COMMISSION EXPENSE 35 0 35
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 616 0 616
931 RENTS 4,284 0 4,284
932 MAINTENANCE OF STRUCTURES AND
EQUIPMENT 1,284 0 1,284
All other expenses
403 DEPRECIATION AND AMORTIZATION
EXPENSES 507 0 507
408 TAXES OTHER THAN INCOME TAXES 13,758 0 13,758
409 INCOME TAXES 2,881 0 2,881
410 PROVISION FOR DEFERRED
INCOME TAXES 1,338 0 1,338
411 PROVISION FOR DEFERRED
INCOME TAXES-CREDIT (3,011) 0 (3,011)
411.5 INVESTMENT TAX CREDIT (68) 0 (68)
426.1 DONATIONS 42 0 42
426.5 OTHER DEDUCTIONS 1,375 0 1,375
427 INTEREST ON LONG-TERM DEBTS 0 0 0
430 INTEREST ON DEBT TO ASSOCIATE
COMPANIES 0 0 0
431 OTHER INTEREST EXPENSE 352 0 352
- - ------------------------------------------------------------------------
SUBTOTAL EXPENSES = 369,409 0 369,409
COMPENSATION FOR USE OF CAPITAL=
427 INTEREST ON LONG-TERM DEBTS (100)
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 322
431 OTHER INTEREST EXPENSE 43
525 RENTS 335
-----------
TOTAL EXPENSES = 370,009
421 MISCELLANEOUS INCOME - CREDIT (275) 0 (275)
NET INCOME 2,116
- - ---------------------------------------------------------------------------
TOTAL COST OF SERVICE = 369,134 0 371,850
===========================================================================
INSTRUCTION: Total cost of service will equal for associate and
nonassociate companies the total amount billed under their
separate analysis of billing schedules.
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
- - ------------------------------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
---------------------------------------
ACCOUNT TOTAL MILLSTONE MILLSTONE MILLSTONE
NUMBER DESCRIPTION OF ITEMS AMOUNT OVERHEAD UNIT #1 UNIT #2 UNIT #3
- - ------------------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C>
Nuclear Power Expenses
517 OPERATION SUPERVISION
AND ENGINEERING 61,586 0 18,750 19,048 23,788
519 COOLANTS AND WATER 7,771 0 2,109 2,756 2,906
520 STEAM EXPENSES 24,838 0 7,840 6,755 10,243
523 ELECTRIC EXPENSES 5,862 0 1,787 1,651 2,424
524 MISCELLANEOUS NUCLEAR
POWER EXPENSES 76,466 0 27,086 23,282 26,098
525 RENTS 6,060 335 2,379 2,651 695
528 MAINTENANCE SUPERVISION
AND ENGINEERING 19,317 0 5,827 5,830 7,660
529 MAINTENANCE OF
STRUCTURES 13,055 0 3,321 3,418 6,316
530 MAINTENANCE OF REACTOR
PLANT EQUIPMENT 46,396 0 4,315 6,617 35,464
531 MAINTENANCE OF ELECTRIC
PLANT 30,451 0 4,844 5,129 20,478
532 MAINTENANCE OF
MISCELLANEOUS NUCLEAR
PLANT 1,813 0 612 575 626
Transmission Expenses
560 OPERATION SUPERVISION
AND ENGINEERING 0 0 0 0 0
562 STATION EXPENSES 1,927 0 0 0 1,927
566 MISCELLANEOUS
TRANSMISSION EXPENSES 0 0 0 0 0
568 MAINTENANCE SUPERVISION
AND ENGINEERING 0 0 0 0 0
569 MAINTENANCE OF
STRUCTURES 0 0 0 0 0
570 MAINTENANCE OF STATION
EQUIPMENT 515 0 98 87 330
Administrative and General
Expenses
920 SALARIES AND WAGES 10,189 0 2,754 2,908 4,527
921 OFFICE SUPPLIES AND
EXPENSES 4,741 0 1,328 1,338 2,075
922 ADMINISTRATIVE EXPENSE
TRANSFERRED-CREDIT 0 0 0 0 0
923 OUTSIDE SERVICES
EMPLOYED 3,880 0 1,240 1,280 1,360
924 PROPERTY INSURANCE 9,681 0 2,703 3,040 3,938
925 INJURIES AND DAMAGES 1,868 0 487 545 836
926 EMPLOYEE PENSIONS AND
BENEFITS 19,935 0 5,872 6,282 7,781
928 REGULATORY COMMISSION
EXPENSE 35 0 12 12 11
930.1 GENERAL ADVERTISING
EXPENSES 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL
EXPENSES 616 0 182 187 247
931 RENTS 4,284 0 1,079 1,134 2,071
932 MAINTENANCE OF
STRUCTURES & EQUIPMENT 1,284 0 399 402 483
All other expenses
403 DEPRECIATION AND
AMORTIZATION EXPENSES 507 0 186 108 213
408 TAXES OTHER THAN
INCOME TAXES 13,758 0 4,320 4,376 5,062
409 INCOME TAXES 2,881 0 1,441 1,440 0
410 PROVISION FOR DEFERRED
INCOME TAXES 1,338 0 669 669 0
411 PROVISION FOR DEFERRED
INCOME TAXES-CREDIT (3,011) 0 (1,505) (1,506) 0
411.5 INVESTMENT TAX CREDIT (68) 0 (34) (34) 0
426.1 DONATIONS 42 0 13 14 15
426.5 OTHER DEDUCTIONS 1,375 0 553 553 269
427 INTEREST ON LONG-TERM
DEBTS (100) (100) 0 0 0
430 INTEREST ON DEBT TO
ASSOCIATE COMPANIES 322 322 0 0 0
431 OTHER INTEREST EXPENSE 395 43 178 177 (3)
-------------------------------------------------------------
TOTAL EXPENSES = 370,009 600 100,845 100,724 167,840
=============================================================
INSTRUCTIONS: Indicate each department or service function. (See Instruction 01-3
General Structure of Accounting System: Uniform System of Accounts)
</TABLE>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
SCHEDULE XVII
-------------
KEYS FOR SERVICE FUNCTIONS
--------------------------
KEYS SERVICE FUNCTION
---- ----------------
The individual generating units for which NNECO provides
service are listed separately on Page 24.
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
DEPARTMENTAL ANALYSIS OF SALARIES
---------------------------------
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)
MILLSTONE UNIT #1 16,927 0 16,927 0 310
MILLSTONE UNIT #2 17,220 0 17,220 0 259
MILLSTONE UNIT #3 25,838 0 17,575 8,263 379
--------------------------------------- ---------
59,985 0 51,722 8,263 948
======================================= =========
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
OUTSIDE SERVICES EMPLOYED
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 25,000, 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)
LEGAL SERVICES
--------------
DAY BERRY & HOWARD NA 50
JOSEPH GALLO NA 59
NEWMAN & HOLTZINGER PC NA 302
DAVIS WRIGHT TREMAINE NA 56
WINSTON & STRAWN NA 1,053
-----------
TOTAL LEGAL SERVICES 1,520
===========
SECURITY SERVICES
-----------------
BURNS INTERNATIONAL SECURITY SERVICES NA 9,717
-----------
TOTAL SECURITY SERVICES 9,717
===========
ENGINEERING SERVICES
--------------------
ABB POWER SYSTEMS ENERGY SERVICES INC NA 1,047
A R JOSEPH ASSOCIATES NA 31
BARTLETT NUCLEAR INCORPORATED NA 1,652
CATARACT INCORPORATED NA 1,355
CDI CORPORATION NORTHEAST NA 61
COMBUSTION ENGINEERING NA 404
HMM ASSOCIATES INCORPORATED NA 165
INSTITUTE OF NUCLEAR POWER OPERATIONS NA 102
LIBERTY TECHNICAL SERVICES, INC NA 1,206
LIBERTY TECHNOLOGY CENTER NA 79
MARINER ENGINEERING INCORPORATED NA 389
NES INC NA 236
NEW ENGLAND MECHANICAL SERVICES INC NA 84
NUCLEAR SUPPORT SERVICES INC NA 151
NUCON ENGINEERING ASSOCIATES NA 245
NPS ENERGY SERVICES INCORPORATED NA 253
NRT TECHNICAL INCORPORATED NA 59
NUKAMM ENGINEERING NA 47
PERFORMANCE CONTRACTING INCORPORATED NA 36
PERFORMANCE ASSOCIATES INCORPORATED NA 330
QUADREX ENVIRONMENTAL COMPANY NA 224
SCIENTIFIC ECOLOGY GROUP INCORPORATED NA 192
SOFTAIDE SERVICES NA 46
SONALYSTS INCORPORATED NA 494
STONE & WEBSTER ENGINEERING CORPORATION NA 1,370
TELEDYNE BROWN ENGINEERING NA 31
TMA NORCAL NA 102
VECTRA TECHNOLOGIES INC NA 110
WESTINGHOUSE ELECTRIC CORPORATION NA 549
WESTINGHOUSE RADOLOGICAL SERVICES NA 118
-----------
TOTAL ENGINEERING SERVICES 11,168
===========
OTHER SERVICES
- - --------------
AT&T NA 118
BLC CORPORATION NA 44
BLACKBURN JANITORIAL NA 60
CANBERRA INDUSTRIES INC NA 94
CHEM NUCLEAR SYSTEMS INCORPORATED NA 3,568
DIVING SERVICES INCORPORATED NA 91
EASTERN DESIGN COMPANY INCORPORATED NA 50
DIGITAL EQUIPMENT CORPORTION NA 793
GENERAL ELECTRIC COMPANY NA 42
HAY MANAGEMENT CONSULTANTS NA 394
HEALTH RESOURCES NA 701
C N FLAGG POWER INCORPORATED NA 27
INTERLEAF INCORPORATED NA 130
KELLY SERVICES INC NA 109
MANPOWER INCORPORATED NA 1,064
MICHAEL TOOMEY NA 159
SHORELINE EYE GROUP PC NA 27
H KREVIT & COMPANY INCORPORATED NA 35
JAY A GRAVES MD NA 54
OLSTEN NA 209
NATIONAL FIRE AND MEDICAL SERVICES INC NA 3,574
RLE SOFTWARE ENGINEERING INCORPORATED NA 54
PERFECTION FENCE COMPANY INC NA 30
P & I CONSULTING CO OP LTD NA 156
PROTO POWER CORPORATION NA 211
SMITHKLINE BEECHAM LABORATORIES NA 90
SOFTWARE SENSE INC NA 40
SOUTHEASTERN PULMONARY ASSOCIATES NA 40
TOWERS PERRIN NA 35
SOUTHERN NEW ENGLAND TELEPHONE COMPANY NA 582
COMPUTER HORIZONS CORPORATION NA 40
VOLIAN ENTERPRISES INC NA 65
YANKEE ATOMIC ELECTRIC COMPANY NA 34
MISCELLANEOUS (305 PAYEES) NA 795
-----------
TOTAL OTHER SERVICES 13,515
===========
NORTHEAST UTILIITES SERVICE COMPANY A 8,590
(Supplies centralized accounting, ===========
administrative, data processing,
engineering, financial, legal,
operational, planning, purchasing
and other services.)
GRAND TOTAL 44,510
===========
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
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 1,604
Supplemental Retirement and Savings Plan 2,913
Post Retirement Medical Benefit - FAS 106 3,125
Early Retirement Program 1,234
Group Life, Long-term Disability, Hospital
and Medical Insurance Expenses 10,272
Educational Activities 116
Consulting Expenses 123
Employee Relocation Expenses 29
Cafeteria Expenses 42
System Newspaper 19
Other Employee Benefits Expenses 458
---------
TOTAL 19,935
=========
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
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 NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
MISCELLANEOUS GENERAL EXPENSES
ACCOUNT 930.2
INSTRUCTIONS: Provide a listing of the amount included in Account 930.2,
"Miscellaneous General Expenses," classifying such expense
according to their nature. Payments and expenses permitted by
Sections 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
-------------------------------------------------------------------------
(Thousands of Dollars)
Industry association dues -
Recruitment expenses 21
Services billed from Northeast Utilities Service
Company (an associate company) 597
Other miscellaneous expenses (6 items) (2)
---------
TOTAL 616
=========
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
MISCELLANEOUS GENERAL EXPENSES
RENTS
INSTRUCTIONS: Provide a listing of the amount included in Account 931,
"Rents", classifying such expense 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 1,311
Computer/office equipment 528
Vehicles 259
Simulator 4,467
Services billed from Northeast Utilities Service
Company (an associate company) 5,432
---------
TOTAL 11,997
=========
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
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 267
Massachusetts Unemployment 110
Massachusetts Universal Health Tax 1
Local property 909
Connecticut Sales Tax 4,568
---------
Sub-Total 5,855
---------
(2) U.S. Government Taxes:
Federal Insurance Contribution Act 5,951
Medicare Tax 1,634
Federal Unemployment 108
Federal Excise 210
---------
Sub-Total 7,903
---------
TOTAL 13,758
=========
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
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)
Salvation Army Charitable contribution 5
United Way of Southeastern
Connecticut 4
Services billed from
Northeast Utilities
Service Company
(an associate company) 23
Miscellaneous (50 payees) 10
----------
TOTAL 42
==========
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
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)
Executive incentive
compensation plan Various Officers 22
Services billed from Northeast
Utilities Service Company
(an associate company) 1,191
Civil Penalties Treasurer of the
United States 100
United States Nuclear
Regulatory Commission 62
--------
TOTAL 1,375
========
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1993
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 19H.
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
ORGANIZATION CHART (AS OF DECEMBER 31, 1993)
Executive Vice-President - Nuclear
- Vice President - Millstone Station
- Nuclear Director (Unit #1)
- Nuclear Director (Unit #2)
- Nuclear Director (Unit #3)
NORTHEAST NUCLEAR ENERGY COMPANY
--------------------------------
METHODS OF ALLOCATION
---------------------
For the year ended December 31, 1993
------------------------------------
The costs associated with the three Millstone units are billed either
directly or are allocated on the basis of one third to each unit. If
Millstone Unit 3 is not part of the allocation, then the allocated costs to
Millstone 1 and 2 are on the basis of one-half to each of the two units.
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
The following annual statement was supplied to each associate company in
support of the amount of compensation for use of capital billed during 1993:
In accordance with Instruction 01-12 of the Securities and Exchange
Commission's Uniform System of Accounts for Mutual Service Companies and
Subsidiary Service Companies, Northeast Nuclear Energy Company submits the
following information on the billing of interest on borrowed funds and a
return on equity capital to associated companies for the year 1993:
(A) Amount of compensation for use of capital billed to (See Note)
(B) The basis for billing of interest and return on equity capital to the
associated companies is based on the percentage ownership of the
individual units.
NOTE: For the associate companies and amounts, see "Analysis of
Billing - Associate Companies" on page 21.
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY 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 NUCLEAR ENERGY COMPANY
(Name of Reporting Company)
By: /s/ John W. Noyes
-----------------------------
(Signature of Signing Officer)
Date: April 27, 1994 John W. Noyes - Vice President and Controller
---------------------------------------------
(Printed Name and Title of Signing Officer)
