Form U -13 - 60
Mutual and Subsidiary Service Companies
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1995 and Ending December 31, 1995
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 Sovereign Power under which Incorporated or
Organized - Connecticut
Location of Principal Executive Offices of Reporting
Company - Selden Street, Berlin, CT 06037
Name, title, and address of officer to whom correspondence
concerning this report should be addressed:
John J. Roman, Vice President and Controller,
P.O. Box 270, Hartford, CT 06141-0270
Name of Principal Holding Company Whose Subsidiaries
are served by Reporting Company
NORTHEAST UTILITIES
INSTRUCTIONS FOR USE ON FORM U-13-60
1. TIME OF FILING
Rule 94 provides that on or before the first day of May in each calendar
year, each mutual service company and each subsidiary service company as to
which the Commission shall have made a favorable finding pursuant to Rule 88,
and every service company whose application for approval or declaration
pursuant to Rule 88 is pending shall file with the Commission an annual
report on Form U-13-60 and in accordance with the instructions for that form.
2. NUMBER OF COPIES
Each annual report shall be filed in duplicate. The company should prepare
and retain at least one extra copy for itself in case correspondence with
reference to the report becomes necessary.
3. PERIOD COVERED BY REPORT
The first report filed by any company shall cover the period from the date
the Uniform System of Accounts was required to be made effective as to that
company under Rules 82 and 93 to the end of that calendar year. Subsequent
reports should cover a calendar year.
4. REPORT FORMAT
Reports shall be submitted on the forms prepared by the Commission. If the
space provided on any sheet of such form is inadequate, additional sheets may
be inserted of the same size as a sheet of the form or folded to such size.
5. MONEY AMOUNTS DISPLAYED
All money amounts required to be shown in financial statements may be
expressed in whole dollars, in thousands of dollars or in hundred thousands
of dollars, as appropriate, and subject to provisions of Regulation S-X
(Section 210.3-0.1(b)).
6. DEFICITS DISPLAYED
Deficits and other like entries shall be indicated by the use of either
brackets or a parenthesis with corresponding reference in footnotes.
(Regulation S-X, (Section 210.3-0.1(c)).
7. MAJOR AMENDMENTS OR CORRECTIONS
Any company desiring to amend or correct a major omission or error in a
report after it has been filed with the Commission shall submit an amended
report including only those pages, schedules, and entries that are to be
amended or corrected. A cover letter shall be submitted requesting the
Commission to incorporate the amended report changes and shall be signed by a
duly authorized officer of the company.
8. DEFINITIONS
Definitions contained in Instruction 01-8 to the Uniform System of Accounts
for Mutual Service Companies and Subsidiary Service Companies, Public Utility
Holding Company Act of 1935, as amended February 2, 1979 shall be applicable
to words or terms used specifically within this Form U-13-60.
9. ORGANIZATION CHART
The service company shall submit with each annual report a copy of its
current organization chart.
10. METHODS OF ALLOCATION
The service company shall submit with each annual report a listing of the
currently effective methods of allocation being used by the service company
and on file with the Securities and Exchange Commission pursuant to the
Public Utility Holding Company Act of 1935.
11. ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
The service company shall submit with each annual report a copy of the annual
statement supplied to each associate company in support of the amount of
compensation for use in capital billed during the calendar year.
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
---------------------------------------------
Schedule or Page
Description of Schedules and Accounts Acct. No. No.
- ------------------------------------- ------------------- -----
COMPARATIVE BALANCE SHEET Schedule I 4-5
SERVICE COMPANY PROPERTY Schedule II 6-7
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY Schedule III 8
INVESTMENTS Schedule IV 9
ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES Schedule V 10
FUEL STOCK EXPENSES UNDISTRIBUTED Schedule VI 11
STORES EXPENSE UNDISTRIBUTED Schedule VII 12
MISCELLANEOUS CURRENT AND ACCRUED ASSETS Schedule VIII 13
MISCELLANEOUS DEFERRED DEBITS Schedule IX 14
RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES Schedule X 15
PROPRIETARY CAPITAL Schedule XI 16
LONG-TERM DEBT Schedule XII 17
CURRENT AND ACCRUED LIABILTIES Schedule XIII 18
NOTES TO FINANCIAL STATEMENTS Schedule XIV 19
COMPARATIVE INCOME STATEMENT Schedule XV 20
ANALYSIS OF BILLING - ASSOCIATE COMPANIES Account 457 21
ANALYSIS OF BILLING - NONASSOCIATE COMPANIES Account 458 22
ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE
AND NONASSOCIATE COMPANIES Schedule XVI 23
SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE
FUNCTION Schedule XVII 24-25
DEPARTMENTAL ANALYSIS OF SALARIES 26
OUTSIDE SERVICES EMPLOYED 27
EMPLOYEE PENSIONS AND BENEFITS Account 926 28
GENERAL ADVERTISING EXPENSES Account 930.1 29
MISCELLANEOUS GENERAL EXPENSES Account 930.2 30
RENTS 31
TAXES OTHER THAN INCOME TAXES Account 408 32
DONATIONS Account 426.1 33
OTHER DEDUCTIONS Account 426.5 34
NOTES TO STATEMENT OF INCOME Schedule XVIII 35
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
--------------------------------------------
Page
Description of Reports or Statements No.
- ------------------------------------ -----
ORGANIZATION CHART 36
METHODS OF ALLOCATION 37
ANNUAL STATEMENT OF COMPENSATION FOR
USE OF CAPITAL BILLED 38
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
------- --------------------------------------------------------- ------------- -----------
1995 1994
SERVICE COMPANY PROPERTY (Thousands of Dollars)
------------------------
<S> <C> <C>
101 Service company property (Schedule II) $ 37,880 $ 37,359
107 Construction work in progress (Schedule II) 1,623 1,553
----------- -----------
Total Property 39,503 38,912
----------- -----------
108 Less accumulated provision for depreciation and
amortization of service company property (Schedule III) 9,541 7,848
----------- -----------
Net Service Company Property 29,962 31,064
----------- -----------
INVESTMENTS
-----------
123 Investments in associate companies (Schedule IV) - -
124 Other investments (Schedule IV) - -
----------- -----------
Total Investments - -
----------- -----------
CURRENT AND ACCRUED ASSETS
--------------------------
131 Cash - -
134 Special deposits - -
135 Working funds 5 5
136 Temporary cash investments (Schedule IV) - -
141 Notes receivable - -
143 Accounts receivable 6,910 16,391
144 Accumulated provision of uncollectible accounts - -
146 Accounts receivable from associate companies (Schedule V) 70,795 74,628
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies 66,401 67,486
163 Stores expense undistributed (Schedule VII) 54 1
165 Prepayments 5,399 5,765
174 Miscellaneous current and accrued assets (Schedule VIII) - -
----------- -----------
Total Current and Accrued Assets 149,564 164,276
----------- -----------
DEFERRED DEBITS
---------------
181 Unamortized debt expense 159 169
184 Clearing accounts 4 3
186 Miscellaneous deferred debits (Schedule IX) 2,286 2,718
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes 10,943 2,424
----------- -----------
Total Deferred Debits 13,392 5,314
----------- -----------
TOTAL ASSETS AND OTHER DEBITS $ 192,918 $ 200,654
=========== ===========
</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
- ------- --------------------------------------------------------- ------------- -----------
1995 1994
PROPRIETARY CAPITAL (Thousands of Dollars)
-------------------
<S> <C> <C>
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) 933 996
----------- -----------
Total Proprietary Capital 16,298 16,361
----------- -----------
LONG-TERM DEBT
--------------
223 Advances from associate companies (Schedule XII) - -
224 Other long-term debt (Schedule XII) 24,573 24,891
225 Unamortized premium on long-term debt - -
226 Unamortized discount on long-term debt-debit - -
----------- -----------
Total Long-Term Debt 24,573 24,891
----------- -----------
CURRENT AND ACCRUED LIABILITIES
-------------------------------
231 Notes payable - -
232 Accounts payable 48,105 49,246
233 Notes payable to associate companies (Schedule XIII) - 6,000
234 Accounts payable to associate companies (Schedule XIII) 9,260 3,507
236 Taxes accrued 4,546 2,957
237 Interest accrued 152 -
238 Dividends declared - -
241 Tax collections payable 228 354
242 Miscellaneous current and accrued - -
liabilities (Schedule XIII) 68,624 81,901
----------- -----------
Total Current and Accrued Liabilities 130,915 143,965
----------- -----------
DEFERRED CREDITS
----------------
253 Other deferred credits 19,825 14,065
255 Accumulated deferred investment tax credits 1,307 1,372
----------- -----------
Total Deferred Credits 21,132 15,437
----------- -----------
282 ACCUMULATED DEFERRED INCOME TAXES - -
--------------------------------- ----------- -----------
TOTAL LIABILITES AND PROPRIETARY CAPITAL 192,918 200,654
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
SCHEDULE II - SERVICE COMPANY PROPERTY
- -------------------------------------------------------------------------------------------
BALANCE AT RETIREMENTS BALANCE
BEGINNING OR OTHER AT CLOSE
DESCRIPTION OF YEAR ADDITIONS SALES CHANGES(1) OF YEAR
- -------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C>
SERVICE COMPANY PROPERTY
- ------------------------
Account
- -------
301 ORGANIZATION
303 MISCELLANEOUS INTANGIBLE PLANT
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 $32,686 $175 $32,861
322 REACTOR PLANT EQUIPMENT
324 ACCESSORY ELECTRIC EQUIPMENT 27 27
325 MISCELLANEOUS POWER PLANT
EQUIPMENT 3,472 346 3,818
391 OFFICE FURNITURE AND EQUIPMENT 1,174 1,174
---------- --------- ----------- ---------- ----------
SUB-TOTAL 37,359 521 37,880
---------- --------- ----------- ---------- ----------
107 CONSTRUCTION WORK IN
PROGRESS (4) 1,553 70 1,623
---------- --------- ----------- ---------- ----------
TOTAL $38,912 $591 $0 $0 $39,503
========== ========= =========== ========== ==========
- -------------------------------------------------------------------------------------------
(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>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
------------------------------------------
- -------------------------------------------------------------------------------------------
ADDITIONS OTHER
BALANCE AT CHARGED CHANGES BALANCE
BEGINNING TO ADD AT CLOSE
DESCRIPTION OF YEAR ACCT 403 RETIREMENTS (DEDUCT)1/ OF YEAR
- -------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C>
Account
- -------
301 ORGANIZATION
303 MISCELLANEOUS INTANGIBLE PLANT
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 AND AIRPORT EQUIPMENT
311 OTHER SERVICE COMPANY
PROPERTY
321 STRUCTURES AND IMPROVEMENTS 4,960 1,353 56 6,369
322 REACTOR PLANT EQUIPMENT
324 ACCESSORY ELECTRIC EQUIPMENT 11 1 12
325 MISCELLANEOUS POWER PLANT
EQUIPMENT 2,226 194 52 2,472
391 OFFICE FURNITURE AND FIXTURES 651 28 9 688
---------- --------- ----------- ---------- ----------
TOTAL $7,848 $1,576 $0 $117 $9,541
========== ========= =========== ========== ==========
- -------------------------------------------------------------------------------------------
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
Depreciation charged to clearing account 65
Removal costs charged to reserve 52
----------
</TABLE> $117
==========
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
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
- ---------------------------------------------------------------------------------------
<S> <C> <C>
ACCOUNT 123 - INVESTMENT IN ASSOCIATE COMPANIES
NONE
ACCOUNT 124 - OTHER INVESTMENTS
NONE
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
NONE
----------- ----------
TOTAL $- $-
=========== ==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable from each
associate company. Where the service company has provided accommodation or
convenience payments for associate companies, a separate listing of total
payments for each associate company by subaccount should be provided.
- -------------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- -------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
Northeast Utilities System Money Pool $40,250 $27,000
The Connecticut Light and Power Company 25,338 34,628
Western Massachusetts Electric Company 5,944 8,106
Northeast Utilities Service Company 3,096 879
Northeast Atlantic Energy Corporation - 174
Northeast Utilities - 2
Public Service Company of New Hampshire - 6
---------- ------------
TOTAL $74,628 $70,795
========== ============
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
See page 10A for details.
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
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.
- -------------------------------------------------------------------------------------------
TOTAL
DESCRIPTION PAYMENTS
- -------------------------------------------------------------------------------------------
(Thousands
of Dollars)
<S> <C>
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
Northeast Utilities 22
The Connecticut Light and Power Company $99
Western Massachusetts Electric Company (28)
Northeast Utilities Service Company 2,749
------------
TOTAL $2,842
============
Convenience payments result primarily from the following items:
Computer Equipment & Supplies $682
Engineering Services 241
Temporary Personnel Services 168
Fuel Inventory (260)
Miscellaneous (180 items) 2,011
------------
TOTAL $2,842
============
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
SCHEDULE VI - FUEL STOCK EXPENSES UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to fuel
stock expenses during the year and indicate amount attributable to each
associate company. Under the section headed "Summary" listed below, give
an overall report of the fuel functions performed by the service
company.
- --------------------------------------------------------------------------------------
DESCRIPTION LABOR EXPENSES TOTAL
- --------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C>
ACCOUNT 152 - FUEL STOCK EXPENSES
UNDISTRIBUTED $ - $ - $ -
========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to stores
expense during the year and indicate amount attributable to each
associate company.
- -------------------------------------------------------------------------------------
DESCRIPTION LABOR EXPENSES TOTAL
- -------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C>
ACCOUNT 163 - STORES EXPENSE
UNDISTRIBUTED
Beginning Balance as of January 1, 1995 $1
----------
Activity for the year:
Stores expense undistributed $2,705 $5,067 7,772
The above stores expenses are billed back
to each of the companies listed below:
The Connecticut Light & Power Company (1,924) (3,605) (5,529)
Western Massachusetts Electric Company (450) (843) (1,293)
Public Service Company of New Hampshire (26) (48) (74)
Nonassociate Companies (see page 22
for list of the companies) (287) (536) (823)
--------- ---------- ----------
Stores expense distributed (2,687) (5,032) (7,719)
--------- ---------- ----------
Net Activity for year $18 $35 53
========= ========== ----------
Ending Balance as of December 31, 1995 $54
==========
</TABLE>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
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
----------- ----------
TOTAL
=========== ==========
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
SCHEDULE IX
MISCELLANEOUS DEFERRED DEBITS
INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000 may be
grouped, showing the number of items in each group.
- -----------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- -----------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS
Financial system development costs $2,501 $1,983
Connecticut sales tax under protest 99 99
Services billed to Northeast Atlantic
Energy Service Corporation - 82
Employee performance payments 56 81
External Audit - Millstone Unit No. 3 62 58
Other deferred debits
(4 items in 1995 and 1994) - (17)
----------- ----------
TOTAL $2,718 $2,286
=========== ==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
SCHEDULE X
RESEARCH, DEVELOPMENT, OR DEMONSTRATION EXPENDITURES
INSTRUCTIONS: Provide a description of each material research, development, or
demonstration project which incurred costs by the service corporation
during the year.
- ------------------------------------------------------------------------------------
DESCRIPTION AMOUNT
- ------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C>
ACCOUNT 188 - RESEARCH, DEVELOPMENT OR
DEMONSTRATION EXPENDITURES
Steam Generator Strategic Management Program $74
EPRI Assessment - Outside Owners 58
Millstone Mass Transport Data 30
Nuclear Core Shroud Cracking Inspection 29
Nuclear Data Retrieval 20
Services billed from Northeast Utilities Service
Company (an associate company) 216
The above expenses are billed back to each of the
associated companies listed below:
The Connecticut Light and Power Company (249)
Western Massachusetts Electric Company (58)
Public Service Company of New Hampshire (11)
Nonassociate Companies (see page 22 for list
of the companies) (109)
-------------
TOTAL $0
=============
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
SCHEDULE XI
PROPRIETARY CAPITAL
- ------------------------------------------------------------------------------------------
NUMBER OF PAR OR STATED OUTSTANDING CLOSE OF PERIOD
ACCOUNT SHARES VALUE ---------------------------
NUMBER CLASS OF STOCK AUTHORIZED PER SHARE NO. OF SHARES TOTAL AMOUNT
- ------------------------------------------------------------------------------------------
(Thousands
of Dollars)
<S> <C> <C> <C> <C>
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 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 $996 $1,911 $1,974 $933
--------- --------- --------- ---------
TOTAL $996 $1,911 $1,974 $933
========= ========= ========= =========
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
---------------------- ------------ ------------- ---------
$329.00 $493,500 03/13/95 03/31/95
$329.00 $493,500 06/12/95 06/30/95
$329.00 $493,500 09/18/95 09/29/95
$329.00 $493,500 12/11/95 12/29/95
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
SCHEDULE XII
LONG-TERM DEBT
INSTRUCTIONS:Advances from associate companies should be reported separately for advances on notes,
and advances on open account. Names of associate companies from which advances were
received shall be shown under the class and series of obligation column. For Account
224 -- Other long-term debt provide the name of creditor company or organization,
terms of obligation, date of maturity, interest rate, and the amount authorized and
outstanding.
- ------------------------------------------------------------------------------------------------------
BALANCE BALANCE
TERMS OF OBLIG. DATE AT AT
CLASS & SERIES OF INTEREST AMOUNT BEGINNING DEDUCTIONS CLOSE
NAME OF CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR ADDITIONS (1) OF YEAR
- ------------------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C>
ACCOUNT 223-ADVANCES FROM
ASSOCIATE
COMPANIES: NONE
===============================================
ACCOUNT 224-OTHER
LONG-TERM
DEBT:
Prudential Insurance Senior
Company of America Unsecured Note 8/2019 7.17% $25,000 $24,891 $0 $318 $24,573
-----------------------------------------------
TOTAL OTHER LONG-TERM DEBT $25,000 $24,891 $0 $318 $24,573
===============================================
</TABLE>
(1) GIVE AN EXPLANATION OF DEDUCTIONS:
Principal payment
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES
INSTRUCTIONS: Provide balance of notes and accounts payable to each associate company.
Give description and amount of miscellaneous current and accrued
liabilities. Items less than $10,000 may be grouped, showing the number of
items in each group.
- ------------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- ------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <S> <S>
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES
Northeast Utilities System Money Pool $6,000 $ -
----------- ----------
TOTAL $6,000 $ -
=========== ==========
- ------------------------------------------------------------------------------------------
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
The Connecticut Light and Power Company $2,314 $1,185
Western Massachusetts Electric Company 42 39
Northeast Utilities Service Company 848 7,724
Northeast Utilities 100 93
Public Service Company of New Hampshire 203 203
Northeast Atlantic Energy Service Corporation - 16
----------- ----------
TOTAL $3,507 $9,260
=========== ==========
- ------------------------------------------------------------------------------------------
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES
Millstone 3 Funding Liability $61,427 $38,271
Pension Cost 15,063 23,209
Performance Reward Program 3,313 3,813
Payroll Accrual 2,075 2,195
Payroll Deductions 12 19
Audit Expense 11 17
Severance Payment - 1,100
Other (no items in 1995 and 1994) - -
TOTAL ----------- ----------
$81,901 $68,624
=========== ==========
</TABLE>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
--------------------------------
For the Year Ended December 31, 1995
-----------------
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), Holyoke Water Power Company, and
North Atlantic Energy Corporation are the operating subsidiaries 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.
PUBLIC UTILITY REGULATION
NU is registered with the Securities and Exchange Commission (SEC) 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, as approved by the
appropriate regulatory agency. 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 4.5 percent in 1995
and 3.9 percent in 1994.
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, 1995, 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 $16.9 million, current
liabilities would have increased by approximately $2.7 million, and long-
term obligations would have increased by approximately $14.2 million.
There is no effect on NNECO's results of operations.
Rental payments charged to operating expenses for 1995 and 1994 amounted to
approximately $4.8 million, respectively, in capital lease rental payments
and $6.2 million and $5.7 million, respectively, in operating lease rental
payments.
Interest included in capital lease rental payments for 1995 and 1994 was
approximately $2.0 million and $2.3 million, respectively.
Future minimum rental payments, excluding executory costs such as property
taxes, state use taxes, insurance and maintenance, under long-term
noncancelable leases as of December 31, 1995, are approximately:
Period Capital Leases Operating Leases
------ --------------- ----------------
(Thousands of Dollars)
1996...................$ 4,366 $326
1997................... 4,195 263
1998................... 4,137 176
1999................... 4,137 97
2000................... 3,828 53
After 2000............. 1,693 84
------- -----
Future minimum
lease payments 22,356 $999
====
Less amount
representing interest 5,417
-------
Present value of future
minimum lease payments $16,939
=======
3. SHORT-TERM DEBT
The system companies have various credit lines totaling $468 million. NU,
CL&P, WMECO, HWP, NNECO, and The Rocky River Realty Company (RRR) have
established a revolving credit facility with a group of 15 banks. Under
this facility, the participating companies may borrow up to an aggregate of
$343 million. Individual borrowing limits as of January 1, 1996 were $150
million for NU, $325 million for CL&P, $60 million for WMECO, $5 million
for HWP, $50 million for NNECO, and $22 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 0.15
percent per annum of each bank's total commitment under the three-year
portion of the facility, representing 75 percent of the total facility,
plus 0.10 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, 1995, there was $43.0 million of borrowings under the
facility, of which NNECO had no outstanding borrowings.
Certain subsidiaries of NU, including NNECO, are members of the Northeast
Utilities System Money Pool (Pool). 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 borrowed by NU parent. NU Parent may lend to the Pool but
may not borrow. Funds may be withdrawn from or repaid to the Pool at any
time without prior notice. 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 borrowings. Investing and borrowing
subsidiaries receive or pay interest based on the average daily Federal
Funds rate. At December 31, 1995 and 1994, NNECO had $0.0 million and $6
million, respectively, in borrowings from the Pool. The interest rate on
borrowings from the Pool at December 31, 1995 and 1994 was 4.9 percent.
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, 1995, the company was authorized to incur
short-term borrowings up to a maximum of $50 million.
4. LONG-TERM DEBT
Detail of long-term debt outstanding is:
December 31, 1995 1994
---------------------------------------------------------------
(Thousands of Dollars)
7.17% Senior Notes, due 2019....... $24,573 $24,891
Less: Amounts due within one year. 365 344
------- -------
Long-term debt, net................ $24,208 $24,547
======= =======
Cash sinking-fund requirements on debt outstanding at December 31, 1995 for
the years 1996 through 2000 are approximately $365,000 for 1996, $398,000
for 1997, $427,000 for 1998, $460,000 for 1999, and $489,000 for 2000.
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 portion of the
system's pension cost, part of which was charged to plant, approximated
$8.1 million in 1995 and $4.5 million in 1994.
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 net pension cost for NNECO are:
At December 31, 1995 1994
----------------------------------------------------------------------
(Thousands of Dollars)
Service cost........................ $ 8,558 $ 4,843
Interest cost....................... 5,711 4,990
Return on plan assets............... (15,790) 109
Net amortization.................... 9,668 (5,399)
--------- ---------
Net pension cost.................... $ 8,147 $ 4,543
======== ========
For calculating pension cost, the following assumptions were used:
For the Years Ended December 31, 1995 1994
-------------------------------------------------------------------
Discount rate....................... 8.25% 7.75%
Expected long-term rate of return... 8.50 8.50
Compensation/progression rate....... 5.00 4.75
The following table represents the plan's funded status reconciled to the
Balance Sheets:
At December 31, 1995 1994
----------------------------------------------------------------------
(Thousands of Dollars)
Accumulated benefit obligation at
December 31, 1995 and 1994, including
vested benefits of $40,605,000 and
$27,233,000, respectively..... $ 52,721 $ 36,846
======== ========
Projected benefit obligation (PBO).. 93,968 69,192
Market value of plan assets......... 77,731 62,207
-------- --------
PBO in excess of market value of plan assets (16,237) (6,985)
Unrecognized transition amount...... (1,874) (2,020)
Unrecognized prior service costs.... 295 315
Unrecognized net gain............... (5,393) (6,373)
-------- -------
Accrued pension liability........... $(23,209)$(15,063)
======== ========
The following actuarial assumptions were used in calculating the plan's
year-end funded status:
At December 31, 1995 1994
----------------------------------------------------------------------
Discount rate....................... 7.50% 8.25%
Compensation/progression rate...... 4.75 5.00
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 (referred to as Statement of Accounting Standards (SFAS 106)
benefits). These benefits are available for employees leaving the system
who have met specified service requirements. Total health care and life
insurance cost, part of which was deferred or charged to utility plant,
approximated $2.0 million in 1995 and $2.1 million in 1994.
On January 1, 1993, the accumulated postretirement benefit obligation
(APBO) represented the system's transition obligation upon the adoption of
SFAS 106. As allowed by SFAS 106, the company is amortizing its transition
obligation of approximately $52 million over a 20-year period. For current
employees and certain retirees, the total SFAS 106 benefit is limited to
two times the 1993 per retiree health care costs. The SFAS 106 obligation
has been calculated based on this assumption.
The company funds 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 components of SFAS 106 benefit costs are:
At December 31, 1995 1994
----------------------------------------------------------------------
(Thousands of Dollars)
Service cost............................ $936 $982
Interest cost........................... 986 937
Return on plan assets................... (842) 38
Amortization of unrecognized
transition obligation.................. 277 277
Other amortization, net................. 595 (135)
------ ------
Net health care and life insurance costs $1,952 $2,099
====== ======
The following actuarial assumptions were used in calculating SFAS 106
benefit costs:
At December 31, 1995 1994
-----------------------------------------------------------------
Discount rate........................... 8.00% 7.75%
Long-term rate of return - health assets,
net of tax........................ 5.00 5.00
Long-term rate of return - life assets.. 8.50 8.50
The following table represents the plan's funded status reconciled to the
Balance Sheets:
At December 31, 1995 1994
----------------------------------------------------------------------
(Thousands of Dollars)
APBO:
Retirees.............................. $ 3,815 $ 3,068
Fully eligible active employees....... 27 66
Active employees not eligible to retire 10,246 8,592
------ -------
Total APBO.............................. 14,088 11,726
Market value of plan assets............. 5,530 3,052
------- -------
APBO in excess of plan assets........... (8,558) (8,674)
Unrecognized transition amount.......... 4,713 4,990
Unrecognized net loss (gain)............ 3,845 3,684
------- -------
Postretirement benefit obligation....... $ 0 $ 0
======= =======
The following actuarial assumptions were used in calculating the plan's
year-end funded status:
At December 31, 1995 1994
----------------------------------------------------------------------
Discount rate........................... 7.50% 8.00%
Health care cost trend rate (a)......... 8.40 10.20
(a)The annual growth in per capita cost of covered health care benefits
was assumed to decrease to 5.4 percent by 2001.
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, 1995 by $588,000 and the aggregate of
the service and interest cost components of net periodic postretirement
benefit cost for the year then ended by $88,000. The trust holding the
plan assets is subject to federal income taxes at a 35-percent tax rate.
7. 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, 1995 and 1994, the fair value of NNECO's fixed-rate security was $24.9
million.
8. NUCLEAR PERFORMANCE
On January 31, 1996, the NRC announced that the three Millstone nuclear
power plants, operated by NNECO, had been placed on its "watch list"
because of long-standing performance concerns. The NRC cited a number of
operational problems that have arisen since 1990 at the Millstone plants.
The NRC recognized that there are significant current variations in the
performance of the three Millstone units. The performance concerns cited by
the NRC, combined with NU's failure to maintain previous performance
improvements, have resulted in the NRC requiring close monitoring of units
operated by NU and the implementation of a corrective action program.
On March 7, 1996 NUSCO received a letter from the NRC concerning the
Connecticut Yankee Atomic Power Company (CY, a nuclear power plant
managed by NU) and the Millstone Point 2 and 3 units. The NRC is
requesting reports by April 6, 1996, on actions taken to date and NU's
plans and schedule to ensure that future operation of CY and the
Millstone Point 3 unit will conform to NRC regulations, the units'
respective operating licenses, and the Updated Final Safety Analysis
Reports (collectively, the "Applicable Requirements").
The Millstone 1 unit's outage has been extended to the second quarter of
1996 to complete repairs and to respond to the NRC's request for
information. On February 21, 1996, the Millstone 2 unit was shut down as a
result of an engineering evaluation. It is anticipated that the necessary
work to respond to the NRC's letter for both Millstone 1 and 2 will not be
completed until August of 1996. Management cannot predict at this time how
long the NRC's review will take or what additional actions, if any, the NRC
will take with respect to the restart of Millstone 1 and 2, following the
company's response.
On March 30, 1996, the Millstone 3 unit was shut down by the company
following an engineering evaluation. On April 4, 1996, the NRC issued a
letter indicating that it had identified programmatic issues and design
deficiencies at Millstone 3 unit that were similar in nature to those
previously identified at the Millstone 1 and 2 units, and, was seeking
information regarding the plans and schedule for ensuring that the future
operation of the unit would be conducted in accordance with the Applicable
Requirements. As the Millstone 3 unit was constructed under more stringent
licensing requirements, it is anticipated that the preparation of the
response to the NRC's request for information for Millstone 3 should not be
as difficult or time consuming as that for the earlier vintage Millstone 1
and 2 units. Management cannot, at this time, predict the duration of the
process for preparing the necessary response, the NRC's reaction to the
response or the expected date that Millstone 3 will return to service.
Any costs associated with the NRC's actions will be borne by the plant's
owners. These costs cannot accurately be estimated at this time.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
FOR THE YEAR ENDED DECEMBER 31, 1995
SCHEDULE XV
COMPARATIVE INCOME STATEMENT
- ---------------------------------------------------------------------------------------
ACCOUNT DESCRIPTION 1995 1994
- ---------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
INCOME
------
457 Services rendered to associate companies $368,726 $343,945
458 Services rendered to nonassociate companies 48,890 40,075
421 Miscellaneous income or loss 1,394 419
------------ -----------
Total Income 419,010 384,439
------------ -----------
EXPENSE
-------
Nuclear Power Expenses
517 Operation Supervision and Engineering 50,492 52,343
519 Coolants and Water 5,697 5,126
520 Steam Expenses 32,450 27,991
523 Electric Expenses 17,191 14,047
524 Miscellaneous Nuclear Power Expenses 67,566 68,166
525 Rents 5,633 5,040
528 Maintenance Supervision and Engineering 20,443 20,013
529 Maintenance of Structures 21,131 16,604
530 Maintenance of Reactor Plant Equipment 88,434 67,885
531 Maintenance of Electric Plant 29,663 30,250
532 Maintenance of Miscellaneous Nuclear Plant 790 785
Transmission Expenses
560 Operation Supervision and Engineering 0 0
562 Station Expenses 1,926 1,957
566 Miscellaneous Transmission Expenses 0 0
568 Maintenance Supervision and Engineering 0 0
569 Maintenance of Structures 0 0
570 Maintenance of Station Equipment 567 636
Administrative and General Expenses
920 Salaries and wages 11,094 9,450
921 Office supplies and expenses 4,966 4,723
922 Administrative expense transferred-credit 0 0
923 Outside services employed 3,894 2,720
924 Property insurance 5,280 10,011
925 Injuries and damages 3,335 2,170
926 Employee pensions and benefits 25,142 21,392
928 Regulatory commission expense 23 0
930.1 General advertising expenses 0 0
930.2 Miscellaneous general expenses 672 440
931 Rents 3,648 3,743
932 Maintenance of structures and equipment 418 501
All other expenses
403 Depreciation and amortization expense 1,580 1,087
408 Taxes other than income taxes 10,144 9,273
409 Income taxes 7,768 3,708
410 Provision for deferred income taxes 718 1,960
411 Provision for deferred income taxes-credit (7,040) (3,592)
411.5 Investment tax credit (66) (66)
426.1 Donations 53 54
426.5 Other deductions 936 2,128
427 Interest on long-term debt 1,808 1,326
430 Interest on debt to associate companies 2 380
431 Other interest expense 741 270
------------ -----------
Total Expense 417,099 382,521
------------ -----------
Net Income $1,911 $1,918
============ ===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
- --------------------------------------------------------------------------------
DIRECT INDIRECT COMPENSATION TOTAL
COSTS COSTS FOR USE AMOUNT
NAME OF ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED
- --------------------------------------------------------------------------------
(Thousands of Dollars)
457-1 457-2 457-3
-----------------------------------------------
<S> <C> <C> <C> <C>
The Connecticut Light and
Power Company $291,746 $3,655 $295,401
Western Massachusetts
Electric Company 68,174 855 69,029
Public Service Company
of New Hampshire 4,263 33 4,296
---------- ---------- ------------ -----------
TOTAL $364,183 $0 $4,543 $368,726
========== ========== ===========- ===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
- -------------------------------------------------------------------------------------------
DIRECT INDIRECT COMPENSATION EXCESS TOTAL
COSTS COSTS FOR USE TOTAL OR AMOUNT
NAME OF NONASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL COSTS DEFICIENCY BILLED
- -------------------------------------------------------------------------------------------
(Thousands of Dollars)
458-1 458-2 458-3 458-4
-----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Connecticut Yankee Atomic
Power Company $ 456 $ $ 0 $ 456 $ $ 456
Central Maine Power Company 3,742 28 3,770 3,770
Central Vermont Public Service 2,595 20 2,615 2,615
Montaup Electric Co. 5,989 46 6,035 6,035
New England Power Co. 18,362 139 18,501 18,501
United Illuminating Company 5,512 42 5,554 5,554
Fitchburg Gas & Electric Co. 326 3 329 329
Chicopee Municipal Electric 2,030 15 2,045 2,045
Massachusetts Municipal
Wholesale 7,273 55 7,328 7,328
Lyndonville Electric Department 73 1 74 74
Connecticut Municipal Electric
Coop 1,638 12 1,650 1,650
Vermont Electric Gen & Trans. 529 4 533 533
-----------------------------------------------------------
$48,525 $ 0 $ 365 $ 48,890 $ 0 $48,890
===========================================================
</TABLE>
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, 1995
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
- ---------------------------------------------------------------------------
ASSOCIATE COMPANY CHARGES
-------------------------
ACCOUNT DIRECT INDIRECT
NUMBER DESCRIPTION OF ITEMS COST COST TOTAL
- --------------------------------------------------------------------------
<S> <C> <C><C>
Nuclear Power Expenses
517 OPERATION SUPERVISION AND ENGINEERING 44,058 0 44,058
519 COOLANTS AND WATER 5,019 0 5,019
520 STEAM EXPENSES 29,519 0 29,519
523 ELECTRIC EXPENSES 15,843 0 15,843
524 MISCELLANEOUS NUCLEAR POWER EXPENSES 59,763 0 59,763
525 RENTS 4,488 0 4,488
528 MAINTENANCE SUPERVISION AND ENGINEERING 17,996 0 17,996
529 MAINTENANCE OF STRUCTURES 18,554 0 18,554
530 MAINTENANCE OF REACTOR PLANT EQUIPMENT 78,926 0 78,926
531 MAINTENANCE OF ELECTRIC PLANT 25,637 0 25,637
532 MAINTENANCE OF MISCELLANEOUS NUCLEAR PLANT 702 0 702
Transmission Expenses
560 OPERATION SUPERVISION AND ENGINEERING 0 0 0
562 STATION EXPENSES 157 0 157
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 496 0 496
Administrative and General Expenses
920 SALARIES AND WAGES 9,762 0 9,762
921 OFFICE SUPPLIES AND EXPENSES 4,390 0 4,390
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 3,451 0 3,451
924 PROPERTY INSURANCE 4,204 0 4,204
925 INJURIES AND DAMAGES 2,891 0 2,891
926 EMPLOYEE PENSIONS AND BENEFITS 22,257 0 22,257
928 REGULATORY COMMISSION EXPENSE 21 0 21
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 591 0 591
931 RENTS 3,221 0 3,221
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 370 0 370
All other expenses 0
403 DEPRECIATION AND AMORTIZATION EXPENSES 1,368 0 1,368
408 TAXES OTHER THAN INCOME TAXES 8,915 0 8,915
409 INCOME TAXES 7,768 0 7,768
410 PROVISION FOR DEFERRED INCOME TAXES 718 0 718
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT (7,040) 0 (7,040)
411.5 INVESTMENT TAX CREDIT (66) 0 (66)
426.1 DONATIONS 47 0 47
426.5 OTHER DEDUCTIONS 838 0 838
427 INTEREST ON LONG-TERM DEBTS 0 0 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0 0 0
431 OTHER INTEREST EXPENSE 702 0 702
-------------------------
SUBTOTAL EXPENSES = 365,566 0 365,566
COMPENSATION FOR USE OF CAPITAL=
427 INTEREST ON LONG-TERM DEBTS 1,808
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 2
431 OTHER INTEREST EXPENSE 43
525 RENTS 778
---------
TOTAL EXPENSES = 368,197
421 MISCELLANEOUS INCOME - CREDIT (1,382) 0 (1,382)
NET INCOME 1,911
-------------------------
TOTAL COST OF SERVICE = 364,184 0 368,726
==========================
</TABLE>
INSTRUCTION: Total cost of service will
equal for associate and nonassociate
companies the total amount billed under
their separate analysis of billing
schedules.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
- -------------------------------------------------------------------------------
NONASSOCIATE COMPANY CHARGES
-----------------------------
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 6,434 0 6,434
519 COOLANTS AND WATER 678 0 678
520 STEAM EXPENSES 2,931 0 2,931
523 ELECTRIC EXPENSES 1,348 0 1,348
524 MISCELLANEOUS NUCLEAR POWER EXPENSES 7,803 0 7,803
525 RENTS 1 0 1
528 MAINTENANCE SUPERVISION AND ENGINEERING 2,447 0 2,447
529 MAINTENANCE OF STRUCTURES 2,577 0 2,577
530 MAINTENANCE OF REACTOR PLANT EQUIPMENT 9,508 0 9,508
531 MAINTENANCE OF ELECTRIC PLANT 4,026 0 4,026
532 MAINTENANCE OF MISCELLANEOUS NUCLEAR PLANT 88 0 88
Transmission Expenses
560 OPERATION SUPERVISION AND ENGINEERING 0 0 0
562 STATION EXPENSES 1,769 0 1,769
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 71 0 71
Administrative and General Expenses
920 SALARIES AND WAGES 1,332 0 1,332
921 OFFICE SUPPLIES AND EXPENSES 576 0 576
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 443 0 443
924 PROPERTY INSURANCE 1,076 0 1,076
925 INJURIES AND DAMAGES 444 0 444
926 EMPLOYEE PENSIONS AND BENEFITS 2,885 0 2,885
928 REGULATORY COMMISSION EXPENSE 2 0 2
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 81 0 81
931 RENTS 427 0 427
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 48 0 48
All other expenses 0
403 DEPRECIATION AND AMORTIZATION EXPENSES 212 0 212
408 TAXES OTHER THAN INCOME TAXES 1,229 0 1,229
409 INCOME TAXES 0 0 0
410 PROVISION FOR DEFERRED INCOME TAXES 0 0 0
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT 0 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0
426.1 DONATIONS 6 0 6
426.5 OTHER DEDUCTIONS 98 0 98
427 INTEREST ON LONG-TERM DEBTS 0 0 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0 0 0
431 OTHER INTEREST EXPENSE (4) 0 (4)
----------------------------
SUBTOTAL EXPENSES = 48,536 0 48,536
COMPENSATION FOR USE OF CAPITAL=
427 INTEREST ON LONG-TERM DEBTS 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0
431 OTHER INTEREST EXPENSE 0
525 RENTS 366
-------------
TOTAL EXPENSES = 48,902
421 MISCELLANEOUS INCOME - CREDIT (12) 0 (12)
NET INCOME 0
----------------------------
TOTAL COST OF SERVICE = 48,524 0 48,890
==============================
</TABLE>
INSTRUCTION: Total cost of service will
equal for associate and nonassociate
companies the total amount billed under
their separate analysis of billing
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
- -------------------------------------------------------------------------------
TOTAL CHARGES FOR SERVICE
------------------------------
ACCOUNT DIRECT INDIRECT
NUMBER DESCRIPTION OF ITEMS COST COST TOTAL
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Nuclear Power Expenses
517 OPERATION SUPERVISION AND ENGINEERING 50,492 0 50,492
519 COOLANTS AND WATER 5,697 0 5,697
520 STEAM EXPENSES 32,450 0 32,450
523 ELECTRIC EXPENSES 17,191 0 17,191
524 MISCELLANEOUS NUCLEAR POWER EXPENSES 67,566 0 67,566
525 RENTS 4,489 0 4,489
528 MAINTENANCE SUPERVISION AND ENGINEERING 20,443 0 20,443
529 MAINTENANCE OF STRUCTURES 21,131 0 21,131
530 MAINTENANCE OF REACTOR PLANT EQUIPMENT 88,434 0 88,434
531 MAINTENANCE OF ELECTRIC PLANT 29,663 0 29,663
532 MAINTENANCE OF MISCELLANEOUS NUCLEAR PLANT 790 0 790
Transmission Expenses
560 OPERATION SUPERVISION AND ENGINEERING 0 0 0
562 STATION EXPENSES 1,926 0 1,926
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 567 0 567
Administrative and General Expenses
920 SALARIES AND WAGES 11,094 0 11,094
921 OFFICE SUPPLIES AND EXPENSES 4,966 0 4,966
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 3,894 0 3,894
924 PROPERTY INSURANCE 5,280 0 5,280
925 INJURIES AND DAMAGES 3,335 0 3,335
926 EMPLOYEE PENSIONS AND BENEFITS 25,142 0 25,142
928 REGULATORY COMMISSION EXPENSE 23 0 23
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 672 0 672
931 RENTS 3,648 0 3,648
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 418 0 418
All other expenses
403 DEPRECIATION AND AMORTIZATION EXPENSES 1,580 0 1,580
408 TAXES OTHER THAN INCOME TAXES 10,144 0 10,144
409 INCOME TAXES 7,768 0 7,768
410 PROVISION FOR DEFERRED INCOME TAXES 718 0 718
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT (7,040) 0 (7,040)
411.5 INVESTMENT TAX CREDIT (66) 0 (66)
426.1 DONATIONS 53 0 53
426.5 OTHER DEDUCTIONS 936 0 936
427 INTEREST ON LONG-TERM DEBTS 0 0 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0 0 0
431 OTHER INTEREST EXPENSE 698 0 698
------------------------------
SUBTOTAL EXPENSES = 414,102 0 414,102
COMPENSATION FOR USE OF CAPITAL=
427 INTEREST ON LONG-TERM DEBTS 1,808
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 2
431 OTHER INTEREST EXPENSE 43
525 RENTS 1,144
----------
TOTAL EXPENSES = 417,099
421 MISCELLANEOUS INCOME - CREDIT (1,394) 0 (1,394)
NET INCOME 1,911
------------------------------
TOTAL COST OF SERVICE = 412,708 0 417,616
==============================
</TABLE>
INSTRUCTION: Total cost of service will
equal for associate and nonassociate
companies the total amount billed under
their separate analysis of billing
schedules.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
- -------------------------------------------------------------------------
ACCOUNT TOTAL
NUMBER DESCRIPTION OF ITEMS AMOUNT OVERHEAD
- -------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
Nuclear Power Expenses
517 OPERATION SUPERVISION AND ENGINEERING $50,492 $0
519 COOLANTS AND WATER 5,697 0
520 STEAM EXPENSES 32,450 0
523 ELECTRIC EXPENSES 17,191 0
524 MISCELLANEOUS NUCLEAR POWER EXPENSES 67,566 0
525 RENTS 5,633 1,144
528 MAINTENANCE SUPERVISION AND ENGINEERING 20,443 0
529 MAINTENANCE OF STRUCTURES 21,131 0
530 MAINTENANCE OF REACTOR PLANT EQUIPMENT 88,434 0
531 MAINTENANCE OF ELECTRIC PLANT 29,663 0
532 MAINTENANCE OF MISCELLANEOUS NUCLEAR PLANT 790 0
Transmission Expenses
560 OPERATION SUPERVISION AND ENGINEERING 0 0
562 STATION EXPENSES 1,926 0
566 MISCELLANEOUS TRANSMISSION EXPENSES 0 0
568 MAINTENANCE SUPERVISION AND ENGINEERING 0 0
569 MAINTENANCE OF STRUCTURES 0 0
570 MAINTENANCE OF STATION EQUIPMENT 567 0
Administrative and General Expenses
920 SALARIES AND WAGES 11,094 0
921 OFFICE SUPPLIES AND EXPENSES 4,966 0
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0
923 OUTSIDE SERVICES EMPLOYED 3,894 0
924 PROPERTY INSURANCE 5,280 0
925 INJURIES AND DAMAGES 3,335 0
926 EMPLOYEE PENSIONS AND BENEFITS 25,142 0
928 REGULATORY COMMISSION EXPENSE 23 0
930.1 GENERAL ADVERTISING EXPENSES 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 672 0
931 RENTS 3,648 0
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 418 0
All other expenses
403 DEPRECIATION AND AMORTIZATION EXPENSES 1,580 0
408 TAXES OTHER THAN INCOME TAXES 10,144 0
409 INCOME TAXES 7,768 0
410 PROVISION FOR DEFERRED INCOME TAXES 718 0
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT (7,040) 0
411.5 INVESTMENT TAX CREDIT (66) 0
426.1 DONATIONS 53 0
426.5 OTHER DEDUCTIONS 936 0
427 INTEREST ON LONG-TERM DEBTS 1,808 1,808
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 2 2
431 OTHER INTEREST EXPENSE 741 43
------------------------
TOTAL EXPENSES = $417,099 $ 2,997
========================
</TABLE>
INSTRUCTIONS: Indicate each department or
service function. (See Instruction 01-3
General Structure of Accounting System:
Uniform System of Accounts)
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
- -------------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
------------------------------------
ACCOUNT MILLSTONE MILLSTONE MILLSTONE
NUMBER DESCRIPTION OF ITEMS UNIT #1 UNIT #2 UNIT #3
- -------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C>
Nuclear Power Expenses
517 OPERATION SUPERVISION AND ENGINEERING $14,943 $15,441 $20,108
519 COOLANTS AND WATER 1,563 2,014 2,120
520 STEAM EXPENSES 12,949 10,338 9,163
523 ELECTRIC EXPENSES 7,597 5,380 4,214
524 MISCELLANEOUS NUCLEAR POWER EXPENSES 20,435 23,790 23,341
525 RENTS 1,505 1,648 1,336
528 MAINTENANCE SUPERVISION AND ENGINEERING 5,459 7,333 7,651
529 MAINTENANCE OF STRUCTURES 6,699 6,375 8,057
530 MAINTENANCE OF REACTOR PLANT EQUIPMENT 28,565 30,140 29,729
531 MAINTENANCE OF ELECTRIC PLANT 7,637 9,438 12,588
532 MAINTENANCE OF MISCELLANEOUS NUCLEAR PLANT 262 252 276
Transmission Expenses
560 OPERATION SUPERVISION AND ENGINEERING 0 0 0
562 STATION EXPENSES 0 0 1,926
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 217 129 221
Administrative and General Expenses
920 SALARIES AND WAGES 3,591 3,395 4,108
921 OFFICE SUPPLIES AND EXPENSES 1,587 1,583 1,796
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 1,354 1,155 1,385
924 PROPERTY INSURANCE 653 1,251 3,376
925 INJURIES AND DAMAGES 904 1,043 1,388
926 EMPLOYEE PENSIONS AND BENEFITS 7,889 8,242 9,011
928 REGULATORY COMMISSION EXPENSE 9 7 7
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 208 211 253
931 RENTS 1,158 1,153 1,337
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 133 134 151
All other expenses
403 DEPRECIATION AND AMORTIZATION EXPENSES 627 490 463
408 TAXES OTHER THAN INCOME TAXES 3,078 3,162 3,904
409 INCOME TAXES 3,884 3,884 0
410 PROVISION FOR DEFERRED INCOME TAXES 359 359 0
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT (3,520) (3,520) 0
411.5 INVESTMENT TAX CREDIT (33) (33) 0
426.1 DONATIONS 17 17 19
426.5 OTHER DEDUCTIONS 289 340 307
427 INTEREST ON LONG-TERM DEBTS 0 0 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0 0 0
431 OTHER INTEREST EXPENSE 354 355 (11)
------------------------------------
TOTAL EXPENSES = $130,372 $135,506 $148,224
====================================
</TABLE>
INSTRUCTIONS: Indicate each department or
service function. (See Instruction 01-3
General Structure of Accounting System:
Uniform System of Accounts)
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
SCHEDULE XVII
-------------
KEYS FOR SERVICE FUNCTIONS
--------------------------
KEYS SERVICE FUNCTION
---- ----------------
The individual generating units for which NNECO provides
service are listed separately on Page 24.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
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)
<S> <C> <C> <C> <C> <C>
MILLSTONE UNIT #1 $26,772 $0 $26,772 $0 400
MILLSTONE UNIT #2 27,879 0 27,879 0 406
MILLSTONE UNIT #3 33,386 0 22,709 10,677 510
----------------------------------------- ---------
$88,037 $0 $77,360 $10,677 1,316
========================================= =========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
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 ADDRESS ASSOCIATE AMOUNT
- ----------------------------------------------------------------------------------------
(Thousands
of Dollars)
<S> <C>
LEGAL SERVICES
- --------------
CARMODY & TORRANCE DR NA 34
DAY BERRY & HOWARD NA 43
FINK AND HIGHMARK NA 28
WINSTON & STRAWN NA 352
-----------
TOTAL LEGAL SERVICES 457
===========
SECURITY SERVICES
- -----------------
BURNS INTERNATIONAL SECURITY SERVICES NA 8,483
-----------
TOTAL SECURITY SERVICES 8,483
===========
ENGINEERING SERVICES
- --------------------
A R JOSEPH ASSOCIATES NA 257
ABB POWER SYSTEMS ENERGY SERVICES INC NA 1,822
B & W NUCLEAR SERVICE COMPANY NA 46
BARTLETT NUCLEAR INCORPORATED NA 256
C & G ELECTRIC NA 46
CATARACT INCORPORATED NA 1,574
COMBUSTION ENGINEERING NA 35
EBASCO SERVICES INCORPORATED NA 38
EUCON NA 107
GENERAL ELECTRIC COMPANY NA 3,717
GENERAL PHYSICS CORPORATION NA 37
HURST CONSULTING INCORPORATED NA 116
INTERSTATE NUCLEAR SERVICES CORP NA 90
KALSI ENGINEERING INCORPORATED NA 62
MARINER ENGINEERING INCORPORATED NA 1,100
NE TECHNOLOGY INCORPORATED NA 35
NES INC NA 371
NUCLEAR CONTAINMENT SYSTEMS INC NA 61
NUCLEAR ENERGY SERVICES NA 25
NUCLEAR SUPPORT SERVICES INCORPORATED NA 76
NUCLEAR UTILITIES SERVICES COMPANY NA 36
NUCON ENGINEERING ASSOC NA 437
QES INCORPORATED NA 175
RAYTHEON ENGINEERS & CONSTRUCTORS INC NA 310
RLE SOFTWARE ENGINEERING INCORPORATED NA 50
SONALYSTS INCORPORATED NA 117
STONE & WEBSTER ENGINEERING CORPORATION NA 2,752
TELEDYNE BROWN ENGINEERING SERVICES NA 65
WESTINGHOUSE ELECTRIC CORPORATION NA 654
-----------
TOTAL ENGINEERING SERVICES 14,467
===========
OTHER SERVICES
- --------------
A COPY INCORPORATED NA 35
AED INC NA 154
ARTHUR BUILDING SYSTEMS INC NA 69
AT&T NA 235
BLACKBURN JANITORIAL LLC NA 93
BLOOMS INCORPORATED NA 156
C & G VIDEO SYSTEMS INCORPORATED NA 29
CANBERRA INDUSTRIES INCORPORATED NA 67
CANTEEN INTERSTATE UNITED CORPORATION NA 78
CENTER FOR PROFESSIONAL COMPUTER NA 40
CHEM NUCLEAR SYSTEMS INCORPORATED NA 933
COLT INDUSTRIES NA 26
CORE CORPORATION NA 377
DIGITAL EQUIPMENT CORPORATION NA 152
EASTMAN KODAK COMPANY NA 142
ECOLOCHEM NA 893
ETP INCORPORATED NA 30
FRANK A SCALIA PHD NA 252
HALLIBURTON NUS CORPORATION NA 52
HARTFORD STEAM BOILER INSPECTION AND NA 129
HEALTH RESOURCES NA 152
INGERSOLL RAND COMPANY NA 26
INSTITUTE OF NUCLEAR POWER OPERATIONS NA 58
INTERLEAF INC NA 58
JAY A GRAVES MD NA 70
K RAN DESIGN INC NA 51
KELLY SERVICES INCORPORATED NA 136
MANAGEMENT SOLUTIONS & RESOURCES NA 208
MANPOWER INCORPORATED NA 1,051
MICHAEL TOOMEY NA 41
MORGAN LEWIS & BROCKIUS LLP NA 147
NEW ENGLAND MECHANICAL SERVICES INC NA 164
NORTH ATLANTIC ENERGY SERVICE CORP AGENT A 192
OLSTEN STAFFING SERVICES INC NA 44
OTIS ELEVATOR COMPANY NA 88
P & I CONSULTING LTD NA 53
PART TIME RESOURCES INCORPORATED NA 25
PERFORMANCE ASSOCIATES INCORPORATED NA 41
PERFORMANCE CONTRACTING INCORPORATED NA 161
PM REFUSE REMOVAL SERVICE INCORPORATED NA 110
PROTO POWER CORPORATION NA 644
PROUDFOOT REPORTS INCORPORATED NA 52
ROBERT H SCHAFFER & ASSOCIATES NA 29
RUST UTILITY SERVICES INC NA 516
SCIENTIFIC ECOLOGY GROUP INCORPORATED NA 295
SMITHKLINE BEECHAM LABORATORIES NA 98
SNET NA 298
SOUTHEASTERN PULMONARY ASSOCIATES NA 44
TECHNICAL AID CORPORATION NA 43
TECHNOLOGY RESEARCH CORPORATION NA 50
THOMAS YOUNG ASSOCIATES INCORPORATED NA 50
TJE INCORPORATED NA 157
TMA NORCAL NA 46
VECTRA TECHNOLOGIES INCORPORATED NA 194
WILLIAM C HUNTER ENT INCORPORATED NA 154
XEROX CORPORATION NA 158
YANKEE ATOMIC ELECTRIC COMPANY NA 487
MISCELLANEOUS (365 PAYEES) 3,213
-----------
TOTAL OTHER SERVICES 13,346
===========
NORTHEAST UTILIITES SERVICE COMPANY A 4,999
(Supplies centralized accounting, ===========
administrative, data processing,
engineering, financial, legal,
operational, planning, purchasing
and other services.)
GRAND TOTAL 41,752
===========
</TABLE>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANUY
For the Year Ended December 31, 1995
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 $4,429
Supplemental Retirement and Savings Plan 3,205
Post Retirement Medical Benefit - FAS 106 3,809
Early Retirement Program 5,158
Group Life, Long-term Disability, Hospital
and Medical Insurance Expenses 8,698
Educational Activities 147
System Newspaper 38
Other Employee Benefits Expenses (342)
---------
TOTAL $25,142
=========
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
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, 1995
MISCELLANEOUS GENERAL EXPENSES
ACCOUNT 930.2
INSTRUCTIONS: Provide a listing of the amount included in Account 930.2,
"Miscellaneous General Expenses," classifying such expenses
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)
Services billed from Northeast Utilities Service $654
Company (an associate company)
Recruitment expenses 16
Industry association dues 2
---------
TOTAL $672
=========
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
RENTS
INSTRUCTIONS: Provide a listing of the amount included in Account 931,
"Rents," classifying such expenses by major groupings of
property, as defined in the account definition of the
Uniform System of Accounts.
- ---------------------------------------------------------------------------
TYPE OF PROPERTY AMOUNT
- ---------------------------------------------------------------------------
(Thousands of Dollars)
Buildings/office space $1,147
Computer/office equipment 219
Vehicles 503
Simulator 4,386
Services billed from Northeast Utilities Service
Company (an associate company) 5,109
---------
TOTAL $11,364
=========
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
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 $434
Massachusetts Unemployment 14
Massachusetts Universal Health Tax 1
Local property 1,026
Connecticut Sales Tax 4
---------
Sub-Total 1,479
---------
(2) U.S. Government Taxes:
Federal Insurance Contribution Act 6,260
Medicare Tax 1,821
Federal Unemployment 115
Federal Excise 469
---------
Sub-Total 8,665
---------
TOTAL 10,144
=========
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
DONATIONS
ACCOUNT 426.1
INSTRUCTIONS: Provide a listing of the amount included in Account 426.1, "Donations,"
classifying such expenses by its purpose. The aggregate number and amount
of all items of less than $3,000 may be shown in lieu of details.
- -----------------------------------------------------------------------------------------
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
- -----------------------------------------------------------------------------------------
(Thousands
of Dollars)
<S> <C>
Salvation Army Charitable contribution 5
Lawrence and Memorial Hospital Charitable contribution 3
Services billed from Northeast Utilities 28
Service Company (an associate company)
Miscellaneous (53 payees) 17
----------
TOTAL 53
==========
</TABLE>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
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 $101
Services billed from Northeast Utilities Service
Company (an associate company) 779
Civil Penalties Treasurer of the United States 50
Miscellaneous (4 items) 6
--------
TOTAL $936
========
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1995
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 19F.
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
ORGANIZATION CHART (AS OF DECEMBER 31, 1995)
Executive Vice President - Nuclear
- Senior 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, 1995
------------------------------------
The costs associated with the three Millstone units are billed
directly or allocated using one of three methods. The allocation
methods are as follows:
1. One-third to each unit;
2. Number of employees;
3. Net capacity of 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 1995:
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 1995:
(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 J. Roman
-----------------------------------
(Signature of Signing Officer)
John J. Roman - Vice President and Controller
---------------------------------------------
(Printed Name and Title of Signing Officer)
Date: April 26, 1996
--------------------
<TABLE> <S> <C>
<ARTICLE>OPUR2
<CIK>0000310418
<NAME>NORTHEAST NUCLEAR ENERGY COMPANY
<MULTIPLIER>1,000
<S> <C> <C>
<PERIOD-TYPE> YEAR YEAR
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1994
<PERIOD-END> DEC-31-1995 DEC-31-1994
<BOOK-VALUE> PER-BOOK PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 29,962 31,064
<TOTAL-INVESTMENTS> 0 0
<TOTAL-CURRENT-ASSETS> 149,564 164,276
<TOTAL-DEFERRED-DEBITS> 13,392 5,314
<OTHER-ASSETS-AND-DEBITS> 0 0
<TOTAL-ASSETS-AND-DEBITS> 192,918 200,654
<TOTAL-PROPRIETARY-CAPITAL> 16,298 16,361
<TOTAL-LONG-TERM-DEBT> 24,573 24,891
<NOTES-PAYABLE> 0 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 0 6,000
<OTHER-CURR-AND-ACCRUED-LIAB> 130,915 137,965
<TOTAL-DEFERRED-CREDITS> 21,132 15,437
<DEFERRED-INCOME-TAX> 0 0
<TOT-LIABIL-AND-PROPRIET-CAP> 192,918 200,654
<SERVICES-ASSOCIATE-COMPANIES> 368,726 343,945
<SERVICES-NON-ASSOCIATE-COMP> 48,890 40,075
<MISC-INCOME-OR-LOSS> 1,394 419
<TOTAL-INCOME> 419,010 384,439
<SALARIES-AND-WAGES> 88,037 83,354
<EMPLOYEE-PENSION-AND-BENEFIT> 25,142 21,392
<OTHER-EXPENSES> 303,920 277,775
<TOTAL-EXPENSES> 417,099 382,521
<NET-INCOME> 1,911 1,918
<TOTAL-EXPENSES-DIRECT-COST> 414,102 380,212
<TOTAL-EXPENSES-INDIRECT-COST> 0 0
<TOT-EXP-DIRECT-AND-INDIRECT> 414,102 380,212
<PERSONNEL-END-OF-YEAR> 1,316 1,299
</TABLE>
