Form U -13 - 60
Mutual and Subsidiary Service Companies
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1996 and Ending December 31, 1996
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
- ------- --------------------------------------------------------- ------------ ---------
1996 1995
SERVICE COMPANY PROPERTY (Thousands of Dollars)
------------------------
<S> <C> <C>
101 Service company property (Schedule II) $ 38,117 $ 37,880
107 Construction work in progress (Schedule II) 1,556 1,623
---------- ---------
Total Property 39,673 39,503
---------- ---------
108 Less accumulated provision for depreciation and
amortization of service company property (Schedule III) 11,202 9,541
---------- ---------
Net Service Company Property 28,471 29,962
---------- ---------
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 2 5
136 Temporary cash investments (Schedule IV) - -
141 Notes receivable - -
143 Accounts receivable 9,694 6,910
144 Accumulated provision of uncollectible accounts - -
146 Accounts receivable from associate companies (Schedule V) 111,590 70,795
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies 61,117 66,401
163 Stores expense undistributed (Schedule VII) 18 54
165 Prepayments 5,557 5,399
174 Miscellaneous current and accrued assets (Schedule VIII) - -
---------- ---------
Total Current and Accrued Assets 187,978 149,564
---------- ---------
DEFERRED DEBITS
---------------
181 Unamortized debt expense 152 159
184 Clearing accounts 608 4
186 Miscellaneous deferred debits (Schedule IX) 5,756 2,286
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes 15,197 10,943
---------- ---------
Total Deferred Debits 21,713 13,392
---------- ---------
TOTAL ASSETS AND OTHER DEBITS $ 238,162 $ 192,918
========== =========
</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
- ------- --------------------------------------------------------- ------------ ---------
1996 1995
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) 867 933
---------- ---------
Total Proprietary Capital 16,232 16,298
---------- ---------
LONG-TERM DEBT
--------------
223 Advances from associate companies (Schedule XII) - -
224 Other long-term debt (Schedule XII) 24,182 24,573
225 Unamortized premium on long-term debt - -
226 Unamortized discount on long-term debt-debit - -
---------- ---------
Total Long-Term Debt 24,182 24,573
---------- ---------
CURRENT AND ACCRUED LIABILITIES
-------------------------------
231 Notes payable - -
232 Accounts payable 71,954 48,105
233 Notes payable to associate companies (Schedule XIII) - -
234 Accounts payable to associate companies (Schedule XIII) 18,784 9,260
236 Taxes accrued 7,257 4,546
237 Interest accrued - 152
238 Dividends declared 500 -
241 Tax collections payable 672 228
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 81,745 68,624
---------- ---------
Total Current and Accrued Liabilities 180,912 130,915
---------- ---------
DEFERRED CREDITS
----------------
253 Other deferred credits 15,595 19,825
255 Accumulated deferred investment tax credits 1,241 1,307
---------- ---------
Total Deferred Credits 16,836 21,132
---------- ---------
282 ACCUMULATED DEFERRED INCOME TAXES - -
--------------------------------- ---------- ---------
TOTAL LIABILITES AND PROPRIETARY CAPITAL $ 238,162 $ 192,918
========== =========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
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 $32,861 $5 $32,866
322 REACTOR PLANT EQUIPMENT
324 ACCESSORY ELECTRIC EQUIPMENT 27 27
325 MISCELLANEOUS POWER PLANT
EQUIPMENT 3,818 227 4,045
391 OFFICE FURNITURE AND EQUIPMENT 1,174 5 1,179
---------- --------- ----------- ---------- ----------
SUB-TOTAL 37,880 237 38,117
---------- --------- ----------- ---------- ----------
107 CONSTRUCTION WORK IN
PROGRESS (4) 1,623 (67) 1,556
---------- --------- ----------- ---------- ----------
TOTAL $39,503 $170 $0 $0 $39,673
========== ========= =========== ========== ==========
- -------------------------------------------------------------------------------------------
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
NONE
</TABLE>
<TABLE>
<CAPTION>
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)
<S> <C>
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, 1996
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)
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
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 6,369 1,398 (23) 7,744
322 REACTOR PLANT EQUIPMENT
324 ACCESSORY ELECTRIC EQUIPMENT 12 1 13
325 MISCELLANEOUS POWER PLANT
EQUIPMENT 2,472 194 62 2,728
391 OFFICE FURNITURE AND FIXTURES 688 28 1 717
---------- --------- ----------- ---------- ---------
TOTAL $9,541 $1,621 $0 $40 $11,202
========== ========= =========== ========== =========
- ------------------------------------------------------------------------------------------
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
Depreciation charged to clearing account $65
Removal costs charged to reserve (25)
----------
$40
==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
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, 1996
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 $27,000 $75,000
The Connecticut Light and Power Company 34,628 28,344
Western Massachusetts Electric Company 8,106 6,686
Northeast Utilities Service Company 879 1,768
North Atlantic Energy Service Corporation 174 -
Northeast Utilities 2 -
Public Service Company of New Hampshire 6 (208)
---------- ------------
TOTAL $70,795 $111,590
========== ============
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, 1996
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:
The Connecticut Light and Power Company $244
Western Massachusetts Electric Company 36
Public Service Company of New Hampshire 5
North Atlantic Energy Service Corporation 5
Northeast Utilities Service Company 8,948
-----------
TOTAL $9,238
===========
Convenience payments result primarily from the following items:
Engineering Services $3,381
Consulting Services 1,765
Computer Equipment & Supplies 463
Temporary Personnel Services 392
Miscellaneous (179 items) 3,237
-----------
TOTAL $9,238
===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
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, 1996
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, 1996 $54
----------
Activity for the year:
Stores expense undistributed $3,190 $4,424 7,614
The above stores expenses are billed back
to each of the companies listed below:
The Connecticut Light & Power Company (2,296) (3,184) (5,480)
Western Massachusetts Electric Company (537) (745) (1,282)
Public Service Company of New Hampshire (30) (42) (72)
Nonassociate Companies (see page 22
for list of the companies) (342) (474) (816)
--------- ---------- ----------
Stores expense distributed (3,205) (4,445) (7,650)
--------- ---------- ----------
Net Activity for year ($15) ($21) (36)
========= ========== ----------
Ending Balance as of December 31, 1996 $18
==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
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)
<S> <C> <C>
ACCOUNT 174 - MISCELLANEOUS CURRENT AND ACCRUED ASSETS
NONE
----------- ----------
TOTAL
=========== ==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
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 $1,983 $3,090
RABBI Trust funding - 952
Contractual retainage - 800
Unissued non-inventory stock materials - 629
Connecticut sales tax under protest 99 99
Employee performance payments 81 92
External audit - Millstone Unit No. 3 58 53
Services billed to North Atlantic
Energy Service Corporation 82 -
Other deferred debits
(5 items in 1996 and 4 items in 1995) (17) 41
----------- ----------
TOTAL $2,286 $5,756
=========== ==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
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
EPRI Assessment $53
Services billed from Northeast Utilities Service
Company (an associate company) 23
The above expenses are billed back to each of the
associated companies listed below:
The Connecticut Light and Power Company (16)
Western Massachusetts Electric Company (4)
Public Service Company of New Hampshire (4)
Nonassociate Companies (see page 22 for list
of the companies) (52)
-------------
TOTAL $0
=============
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
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
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
(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 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 $933 $1,932 $1,998 $867
--------- --------- --------- ---------
TOTAL $933 $1,932 $1,998 $867
========= ========= ========= =========
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
---------------------- ------------ ------------- ---------
$333.00 $499,500 03/11/96 03/29/96
$333.00 $499,500 06/10/96 06/28/96
$333.00 $499,500 09/16/96 09/30/96
$333.00 $499,500 12/09/96 01/15/97
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
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 $24,573 $0 $391 $24,182
-------------------------------------------------
TOTAL OTHER LONG-TERM DEBT $25,000 $24,573 $0 $391 $24,182
=================================================
(1) GIVE AN EXPLANATION OF DEDUCTIONS:
Principal payment
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
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> <C> <C>
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES
----------- ----------
TOTAL $ - $ -
=========== ==========
- ------------------------------------------------------------------------------------------
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
The Connecticut Light and Power Company $1,185 $756
Western Massachusetts Electric Company 39 41
Northeast Utilities Service Company 7,724 17,534
Northeast Utilities 93 95
Public Service Company of New Hampshire 203 203
North Atlantic Energy Service Corporation 16 155
----------- ----------
TOTAL $9,260 $18,784
=========== ==========
- ------------------------------------------------------------------------------------------
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES
Millstone 3 Funding Liability $38,271 $47,996
Pension Cost 23,209 30,452
Performance Reward Program 3,813 544
Payroll Accrual 2,195 2,756
Severance Accrual 1,100 -
Miscellaneous (2 items) 36 (3)
----------- ----------
TOTAL $68,624 $81,745
=========== ==========
</TABLE>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
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 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.
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 1996
and 1995.
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, 1996, 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 $14.2 million, current
liabilities would have increased by approximately $2.8 million, and long-
term obligations would have increased by approximately $11.4 million.
There is no effect on NNECO's results of operations.
Rental payments charged to operating expenses for 1996 and 1995 amounted to
approximately $4.8, respectively, for capital lease rental payments and
$6.8 million and $6.2 million, respectively, for operating lease rental
payments.
Interest included in capital lease rental payments for 1996 and 1995 was
approximately $1.8 million and $2.0 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, 1996, are approximately:
Period Capital Leases Operating Leases
(Thousands of Dollars)
1997......................... $ 4,200 $400
1998......................... 4,100 300
1999......................... 4,100 200
2000......................... 3,900 70
2001......................... 1,700 40
After 2001................... - 70
Future minimum lease payments 18,000 $1,080
Less amount representing interest 3,800
Present value of future minimum
lease payments............. $14,200
3. SHORT-TERM DEBT
NNECO, NU, CL&P, WMECO, HWP, and The Rocky River Realty Company (RRR) have
various revolving credit lines through separate bilateral credit
agreements. Under this facility, four banks maintain commitments to the
respective system companies totaling $56.25 million. NU, CL&P, and WMECO
may borrow up to the aggregate of $56.25 million, whereas HWP, NNECO, and
RRR may borrow up to their short-term debt limit of $5 million, $50
million, and $22 million, respectively. Under the terms of the agreement,
the system companies may borrow funds on a short-term revolving basis under
the agreement, using either fixed-rate loans or standby loans. Fixed rates
are set using competitive bidding. Standby loans are based upon several
alternative variable rates. Under the terms of the agreement, the system
companies are obligated to pay a facility fee of .15 percent per annum of
each bank's total commitment. These commitments will expire December 3,
1998. At December 31, 1996 and 1995, NNECO had no borrowings outstanding
under the facility.
Under the terms of its credit agreements, NU Parent may borrow and then
lend the funds to NNECO through 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 of other member
companies, including 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. Investing and borrowing
subsidiaries receive and pay interest based on the average daily Federal
Funds rate. Borrowings based on loans from NU Parent, however, bear
interest at NU Parent's cost and must be repaid based upon the terms of NU
Parent's original borrowing. At December 31, 1996 and 1995, NNECO had no
borrowings outstanding under the Pool.
The amount of short-term borrowings that may be incurred by NNECO is
subject to periodic approval by the SEC under the 1935 Act. Under the SEC
restrictions, NNECO was authorized to incur short-term borrowings up to the
maximum of $50 million.
4. LONG-TERM DEBT
Detail of long-term debt outstanding is:
December 31, 1996 1995
(Thousands of Dollars)
7.17% Senior Notes, due 2019............... $24,182 $24,573
Less: Amounts due within one year......... 398 365
Long-term debt, net........................ $23,784 $24,208
Cash sinking-fund requirements on debt outstanding at December 31, 1996 for
the years 1997 through 2001 are approximately $398,000 for 1997, $427,000
for 1998, $460,000 for 1999, $489,000 for 2000, and $531,000 for 2001.
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
$7.2 million in 1996 and $8.1 million in 1995.
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, 1996 1995
(Thousands of Dollars)
Service cost................................. $ 5,882 $ 8,558
Interest cost................................ 7,486 5,711
Return on plan assets........................ (12,461) (15,790)
Net amortization............................. 6,335 9,668
Net pension cost............................. $ 7,242 $ 8,147
For calculating pension cost, the following assumptions were used:
For the Years Ended December 31, 1996 1995
Discount rate................................ 7.50% 8.25%
Expected long-term rate of return............ 8.75 8.50
Compensation/progression rate................ 4.75 5.00
The following table represents the plan's funded status reconciled to the
Balance Sheets:
At December 31, 1996 1995
(Thousands of Dollars)
Accumulated benefit obligation at December 31, 1996
and 1995, including vested benefits of $49,379,000
and $40,605,000, respectively.............. $ 63,645 $ 52,721
Projected benefit obligation (PBO)........... 107,001 93,968
Market value of plan assets.................. 89,828 77,731
PBO in excess of market value of plan assets. (17,173) (16,237)
Unrecognized transition amount............... (1,729) (1,874)
Unrecognized prior service costs............. 4,062 295
Unrecognized net gain........................ (15,612) (5,393)
Accrued pension liability.................... $(30,452) $(23,209)
The following actuarial assumptions were used in calculating the plan's
year-end funded status:
At December 31, 1996 1995
Discount rate................................ 7.75% 7.50%
Compensation/progression rate.............. 4.75 4.75
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 106 (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 $2.1 million in 1996 and $2.0 million in 1995.
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, 1996 1995
(Thousands of Dollars)
Service cost..................................... $1,009 $ 936
Interest cost.................................... 1,204 986
Return on plan assets............................ (762) (842)
Amortization of unrecognized transition obligation 277 277
Other amortization, net.......................... 330 595
Net health care and life insurance costs......... $2,058 $1,952
The following actuarial assumptions were used in calculating SFAS 106
benefit costs:
At December 31, 1996 1995
Discount rate.................................... 7.50% 8.00%
Long-term rate of return - health assets, net of tax 5.25 5.00
Long-term rate of return - life assets........... 8.75 8.50
The following table represents the plan's funded status reconciled to the
Balance Sheets:
At December 31, 1996 1995
(Thousands of Dollars)
APBO:
Retirees....................................... $ 7,500 $ 3,815
Fully eligible active employees................ - 27
Active employees not eligible to retire........ 8,889 10,246
Total APBO....................................... 16,389 14,088
Market value of plan assets...................... 7,881 5,530
APBO in excess of plan assets.................... (8,508) (8,558)
Unrecognized transition amount................... 4,436 4,713
Unrecognized net loss (gain)..................... 4,072 3,845
Postretirement benefit obligation................ $ 0 $ 0
The following actuarial assumptions were used in calculating the plan's
year-end funded status:
At December 31, 1996 1995
Discount rate.................................... 7.75% 7.50%
Health care cost trend rate (a).................. 7.23 8.40
(a) The annual growth in per capita cost of covered health care benefits
was assumed to decrease to 4.9 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, 1996 by $701,000 and the aggregate of
the service and interest cost components of net periodic postretirement
benefit cost for the year then ended by $102,000. The trust holding the
plan assets is subject to federal income taxes at a 35-percent tax rate.
7. NUCLEAR PERFORMANCE
The three Millstone units are managed by NNECO. Millstone 1, 2, and 3 have
been out of service since November 4, 1995, February 21, 1996, and March
30, 1996, respectively, and are on the Nuclear Regulatory Commission's
(NRC) Watch List. The company has restructured its nuclear organization
and is currently implementing comprehensive plans to restart the units.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
FOR THE YEAR ENDED DECEMBER 31, 1996
SCHEDULE XV
COMPARATIVE INCOME STATEMENT
- ---------------------------------------------------------------------------------------
ACCOUNT DESCRIPTION 1996 1995
- ---------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
INCOME
------
457 Services rendered to associate companies $409,581 $368,726
458 Services rendered to nonassociate companies 62,279 48,890
421 Miscellaneous income or loss 2,505 1,394
------------ -----------
Total Income 474,365 419,010
------------ -----------
EXPENSE
-------
Nuclear Power Expenses
517 Operation Supervision and Engineering 57,959 50,492
519 Coolants and Water 3,931 5,697
520 Steam Expenses 27,385 32,450
523 Electric Expenses 11,729 17,191
524 Miscellaneous Nuclear Power Expenses 61,290 67,566
525 Rents 5,690 5,633
528 Maintenance Supervision and Engineering 41,362 20,443
529 Maintenance of Structures 9,429 21,131
530 Maintenance of Reactor Plant Equipment 106,061 88,434
531 Maintenance of Electric Plant 61,703 29,663
532 Maintenance of Miscellaneous Nuclear Plant 1,553 790
Transmission Expenses
560 Operation Supervision and Engineering 0 0
562 Station Expenses 1,752 1,926
566 Miscellaneous Transmission Expenses 0 0
568 Maintenance Supervision and Engineering 0 0
569 Maintenance of Structures 0 0
570 Maintenance of Station Equipment 31 567
Administrative and General Expenses
920 Salaries and wages 11,536 11,094
921 Office supplies and expenses 6,044 4,966
922 Administrative expense transferred-credit 0 0
923 Outside services employed 11,876 3,894
924 Property insurance 3,142 5,280
925 Injuries and damages 3,164 3,335
926 Employee pensions and benefits 23,571 25,142
928 Regulatory commission expense 30 23
930.1 General advertising expenses 0 0
930.2 Miscellaneous general expenses 1,699 672
931 Rents 3,573 3,648
932 Maintenance of structures and equipment 257 418
All other expenses
403 Depreciation and amortization expense 1,621 1,580
408 Taxes other than income taxes 10,716 10,144
409 Income taxes 6,882 7,768
410 Provision for deferred income taxes 1,218 718
411 Provision for deferred income taxes-credit (5,478) (7,040)
411.5 Investment tax credit (66) (66)
426.1 Donations 19 53
426.5 Other deductions 490 936
427 Interest on long-term debt 1,788 1,808
430 Interest on debt to associate companies 0 2
431 Other interest expense 476 741
------------ -----------
Total Expense 472,433 417,099
------------ -----------
Net Income $1,932 $1,911
============ ===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
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 $323,968 $3,627 $327,595
Western Massachusetts
Electric Company 75,652 849 76,501
Public Service Company
of New Hampshire 5,453 32 5,485
---------- ---------- ------------ -----------
TOTAL $405,073 $0 $4,508 $409,581
========== ========== ============ ===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
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> <C>
Connecticut Yankee Atomic
Power Company $ 429 $ $ 0 $ 429 $ $ 429
Central Maine Power Company 4,790 28 4,818 4,818
Central Vermont Public Service 3,322 19 3,341 3,341
Montaup Electric Co. 7,674 44 7,718 7,718
New England Power Co. 23,473 135 23,608 23,608
United Illuminating Company 7,056 40 7,096 7,096
Fitchburg Gas & Electric Co. 417 2 419 419
Chicopee Municipal Electric 2,616 15 2,631 2,631
Massachusetts Municipal
Wholesale 9,285 53 9,338 9,338
Lyndonville Electric Department 94 1 95 95
Connecticut Municipal Electric
Coop 2,094 12 2,106 2,106
Vermont Electric Gen & Trans. 676 4 680 680
------------------------------------------------------------
$61,926 $ 0 $ 353 $ 62,279 $ 0 $62,279
============================================================
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>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
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 52,839 0 52,839
519 COOLANTS AND WATER 3,443 0 3,443
520 STEAM EXPENSES 24,571 0 24,571
523 ELECTRIC EXPENSES 10,702 0 10,702
524 MISCELLANEOUS NUCLEAR POWER EXPENSES 54,119 0 54,119
525 RENTS 4,573 0 4,573
528 MAINTENANCE SUPERVISION AND ENGINEERING 35,812 0 35,812
529 MAINTENANCE OF STRUCTURES 7,892 0 7,892
530 MAINTENANCE OF REACTOR PLANT EQUIPMENT 92,150 0 92,150
531 MAINTENANCE OF ELECTRIC PLANT 48,434 0 48,434
532 MAINTENANCE OF MISCELLANEOUS NUCLEAR PLANT 1,382 0 1,382
Transmission Expenses
560 OPERATION SUPERVISION AND ENGINEERING 0 0 0
562 STATION EXPENSES 144 0 144
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 27 0 27
Administrative and General Expenses
920 SALARIES AND WAGES 10,170 0 10,170
921 OFFICE SUPPLIES AND EXPENSES 5,371 0 5,371
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 10,728 0 10,728
924 PROPERTY INSURANCE 2,402 0 2,402
925 INJURIES AND DAMAGES 2,737 0 2,737
926 EMPLOYEE PENSIONS AND BENEFITS 20,807 0 20,807
928 REGULATORY COMMISSION EXPENSE 28 0 28
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 1,560 0 1,560
931 RENTS 3,151 0 3,151
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 226 0 226
All other expenses 0
403 DEPRECIATION AND AMORTIZATION EXPENSES 1,402 0 1,402
408 TAXES OTHER THAN INCOME TAXES 9,381 0 9,381
409 INCOME TAXES 6,787 0 6,787
410 PROVISION FOR DEFERRED INCOME TAXES 1,218 0 1,218
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT (5,478) 0 (5,478)
411.5 INVESTMENT TAX CREDIT (66) 0 (66)
426.1 DONATIONS 17 0 17
426.5 OTHER DEDUCTIONS 447 0 447
427 INTEREST ON LONG-TERM DEBTS 0 0 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0 0 0
431 OTHER INTEREST EXPENSE 440 0 440
-------------------------
SUBTOTAL EXPENSES = 407,416 0 407,416
COMPENSATION FOR USE OF CAPITAL=
427 INTEREST ON LONG-TERM DEBTS 1,788
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0
431 OTHER INTEREST EXPENSE 36
525 RENTS 752
---------
TOTAL EXPENSES = 409,992
421 MISCELLANEOUS INCOME - CREDIT (2,343) 0 (2,343)
NET INCOME 1,932
-------------------------
TOTAL COST OF SERVICE = 405,073 0 409,581
==========================
</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, 1996
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 5,120 0 5,120
519 COOLANTS AND WATER 488 0 488
520 STEAM EXPENSES 2,814 0 2,814
523 ELECTRIC EXPENSES 1,027 0 1,027
524 MISCELLANEOUS NUCLEAR POWER EXPENSES 7,171 0 7,171
525 RENTS 12 0 12
528 MAINTENANCE SUPERVISION AND ENGINEERING 5,550 0 5,550
529 MAINTENANCE OF STRUCTURES 1,537 0 1,537
530 MAINTENANCE OF REACTOR PLANT EQUIPMENT 13,911 0 13,911
531 MAINTENANCE OF ELECTRIC PLANT 13,269 0 13,269
532 MAINTENANCE OF MISCELLANEOUS NUCLEAR PLANT 171 0 171
Transmission Expenses
560 OPERATION SUPERVISION AND ENGINEERING 0 0 0
562 STATION EXPENSES 1,608 0 1,608
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 4 0 4
Administrative and General Expenses
920 SALARIES AND WAGES 1,366 0 1,366
921 OFFICE SUPPLIES AND EXPENSES 673 0 673
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 1,148 0 1,148
924 PROPERTY INSURANCE 740 0 740
925 INJURIES AND DAMAGES 427 0 427
926 EMPLOYEE PENSIONS AND BENEFITS 2,764 0 2,764
928 REGULATORY COMMISSION EXPENSE 2 0 2
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 139 0 139
931 RENTS 422 0 422
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 31 0 31
All other expenses 0
403 DEPRECIATION AND AMORTIZATION EXPENSES 219 0 219
408 TAXES OTHER THAN INCOME TAXES 1,335 0 1,335
409 INCOME TAXES 95 0 95
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 2 0 2
426.5 OTHER DEDUCTIONS 43 0 43
427 INTEREST ON LONG-TERM DEBTS 0 0 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0 0 0
431 OTHER INTEREST EXPENSE 0 0 0
----------------------------
SUBTOTAL EXPENSES = 62,088 0 62,088
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 353
-------------
TOTAL EXPENSES = 62,441
421 MISCELLANEOUS INCOME - CREDIT (162) 0 (162)
NET INCOME 0
-----------------------------
TOTAL COST OF SERVICE = 61,926 0 62,279
==============================
</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, 1996
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 57,959 0 57,959
519 COOLANTS AND WATER 3,931 0 3,931
520 STEAM EXPENSES 27,385 0 27,385
523 ELECTRIC EXPENSES 11,729 0 11,729
524 MISCELLANEOUS NUCLEAR POWER EXPENSES 61,290 0 61,290
525 RENTS 4,585 0 4,585
528 MAINTENANCE SUPERVISION AND ENGINEERING 41,362 0 41,362
529 MAINTENANCE OF STRUCTURES 9,429 0 9,429
530 MAINTENANCE OF REACTOR PLANT EQUIPMENT 106,061 0 106,061
531 MAINTENANCE OF ELECTRIC PLANT 61,703 0 61,703
532 MAINTENANCE OF MISCELLANEOUS NUCLEAR PLANT 1,553 0 1,553
Transmission Expenses
560 OPERATION SUPERVISION AND ENGINEERING 0 0 0
562 STATION EXPENSES 1,752 0 1,752
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 31 0 31
Administrative and General Expenses
920 SALARIES AND WAGES 11,536 0 11,536
921 OFFICE SUPPLIES AND EXPENSES 6,044 0 6,044
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 11,876 0 11,876
924 PROPERTY INSURANCE 3,142 0 3,142
925 INJURIES AND DAMAGES 3,164 0 3,164
926 EMPLOYEE PENSIONS AND BENEFITS 23,571 0 23,571
928 REGULATORY COMMISSION EXPENSE 30 0 30
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 1,699 0 1,699
931 RENTS 3,573 0 3,573
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 257 0 257
All other expenses
403 DEPRECIATION AND AMORTIZATION EXPENSES 1,621 0 1,621
408 TAXES OTHER THAN INCOME TAXES 10,716 0 10,716
409 INCOME TAXES 6,882 0 6,882
410 PROVISION FOR DEFERRED INCOME TAXES 1,218 0 1,218
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT (5,478) 0 (5,478)
411.5 INVESTMENT TAX CREDIT (66) 0 (66)
426.1 DONATIONS 19 0 19
426.5 OTHER DEDUCTIONS 490 0 490
427 INTEREST ON LONG-TERM DEBTS 0 0 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0 0 0
431 OTHER INTEREST EXPENSE 440 0 440
------------------------------
SUBTOTAL EXPENSES = 469,504 0 469,504
COMPENSATION FOR USE OF CAPITAL=
427 INTEREST ON LONG-TERM DEBTS 1,788
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0
431 OTHER INTEREST EXPENSE 36
525 RENTS 1,105
----------
TOTAL EXPENSES = 472,433
421 MISCELLANEOUS INCOME - CREDIT (2,505) 0 (2,505)
NET INCOME 1,932
------------------------------
TOTAL COST OF SERVICE = 466,999 0 471,860
==============================
</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 57,959 0
519 COOLANTS AND WATER 3,931 0
520 STEAM EXPENSES 27,385 0
523 ELECTRIC EXPENSES 11,729 0
524 MISCELLANEOUS NUCLEAR POWER EXPENSES 61,290 0
525 RENTS 5,690 1,105
528 MAINTENANCE SUPERVISION AND ENGINEERING 41,362 0
529 MAINTENANCE OF STRUCTURES 9,429 0
530 MAINTENANCE OF REACTOR PLANT EQUIPMENT 106,061 0
531 MAINTENANCE OF ELECTRIC PLANT 61,703 0
532 MAINTENANCE OF MISCELLANEOUS NUCLEAR PLANT 1,553 0
Transmission Expenses
560 OPERATION SUPERVISION AND ENGINEERING 0 0
562 STATION EXPENSES 1,752 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 31 0
Administrative and General Expenses
920 SALARIES AND WAGES 11,536 0
921 OFFICE SUPPLIES AND EXPENSES 6,044 0
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0
923 OUTSIDE SERVICES EMPLOYED 11,876 0
924 PROPERTY INSURANCE 3,142 0
925 INJURIES AND DAMAGES 3,164 0
926 EMPLOYEE PENSIONS AND BENEFITS 23,571 0
928 REGULATORY COMMISSION EXPENSE 30 0
930.1 GENERAL ADVERTISING EXPENSES 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 1,699 0
931 RENTS 3,573 0
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 257 0
All other expenses
403 DEPRECIATION AND AMORTIZATION EXPENSES 1,621 0
408 TAXES OTHER THAN INCOME TAXES 10,716 0
409 INCOME TAXES 6,882 0
410 PROVISION FOR DEFERRED INCOME TAXES 1,218 0
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT (5,478) 0
411.5 INVESTMENT TAX CREDIT (66) 0
426.1 DONATIONS 19 0
426.5 OTHER DEDUCTIONS 490 0
427 INTEREST ON LONG-TERM DEBTS 1,788 1,788
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0 0
431 OTHER INTEREST EXPENSE 476 36
----------------------
TOTAL EXPENSES = 472,433 2,929
======================
</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 25,435 16,515 16,009
519 COOLANTS AND WATER 1,069 1,336 1,526
520 STEAM EXPENSES 8,305 10,282 8,798
523 ELECTRIC EXPENSES 4,185 4,331 3,213
524 MISCELLANEOUS NUCLEAR POWER EXPENSES 19,188 20,752 21,350
525 RENTS 1,536 1,680 1,369
528 MAINTENANCE SUPERVISION AND ENGINEERING 8,321 15,690 17,351
529 MAINTENANCE OF STRUCTURES 1,891 2,733 4,805
530 MAINTENANCE OF REACTOR PLANT EQUIPMENT 36,224 26,338 43,499
531 MAINTENANCE OF ELECTRIC PLANT 5,793 14,418 41,492
532 MAINTENANCE OF MISCELLANEOUS NUCLEAR PLANT 541 478 534
Transmission Expenses
560 OPERATION SUPERVISION AND ENGINEERING 0 0 0
562 STATION EXPENSES 0 0 1,752
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 11 9 11
Administrative and General Expenses
920 SALARIES AND WAGES 3,686 3,652 4,198
921 OFFICE SUPPLIES AND EXPENSES 1,985 1,962 2,097
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 3,748 2,826 5,302
924 PROPERTY INSURANCE 295 430 2,417
925 INJURIES AND DAMAGES 871 959 1,334
926 EMPLOYEE PENSIONS AND BENEFITS 7,419 7,531 8,621
928 REGULATORY COMMISSION EXPENSE 14 9 7
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 664 686 349
931 RENTS 1,121 1,132 1,320
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 79 82 96
All other expenses
403 DEPRECIATION AND AMORTIZATION EXPENSES 669 496 456
408 TAXES OTHER THAN INCOME TAXES 3,215 3,358 4,143
409 INCOME TAXES 3,305 3,281 296
410 PROVISION FOR DEFERRED INCOME TAXES 609 609 0
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT (2,739) (2,739) 0
411.5 INVESTMENT TAX CREDIT (33) (33) 0
426.1 DONATIONS 6 6 7
426.5 OTHER DEDUCTIONS 160 161 169
427 INTEREST ON LONG-TERM DEBTS 0 0 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0 0 0
431 OTHER INTEREST EXPENSE 220 220 0
------------------------------------
TOTAL EXPENSES = 137,793 139,190 192,521
====================================
</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, 1996
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, 1996
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 $25,307 $0 $25,307 $0 374
MILLSTONE UNIT #2 26,557 0 26,557 0 387
MILLSTONE UNIT #3 34,453 0 23,435 11,018 513
---------------------------------------- ---------
$86,317 $0 $75,299 $11,018 1,274
======================================== =========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
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 $100,000, 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>
ENGINEERING SERVICES
- --------------------
CATARACT INC NA $3,202
GENERAL ELECTRIC NA 1,525
NUCON NA 1,058
MARINER ENGINEERING INC NA 912
RAYTHEON QUALITY PROGRAMS DIV NA 843
CONTRACT SOLUTIONS NA 703
STONE & WEBSTER ENGINEERING NA 658
YANKEE ATOMIC ELECTRIC CO NA 365
AMERICAN SCIENTIFIC INC NA 240
ABB COMBUSTION ENGINEERING NA 220
DUKE ENGINEERING & SERVICES NA 215
ALTRAN CORP NA 145
GENERAL PHYSICS CORP NA 135
MDM ENGINEERING CORP NA 130
ONSITE NA 129
FRAMATOME TECHNOLOGIES ESP NA 105
STONE & WEBSTER CONST CO INC NA 103
MISCELLANEOUS (18 PAYEES) NA 504
-----------
TOTAL ENGINEERING SERVICES $11,192
===========
LEGAL SERVICES
- --------------
MORGAN LEWIS & BOCKIUS LLP NA $2,064
WINSTON & STRAWN NA 715
DAY BERRY & HOWARD NA 419
UPDIKE KELLY & SPELLACY NA 166
MISCELLANEOUS (3 PAYEES) NA 124
-----------
TOTAL LEGAL SERVICES $3,488
===========
SECURITY SERVICES
- -----------------
BURNS INTERNATIONAL SECURITY SERVICES NA $8,551
C & G VIDEO SYSTEMS INC NA 125
MISCELLANEOUS (1 PAYEE) NA 1
-----------
TOTAL SECURITY SERVICES $8,677
===========
TELECOMMUNICATION SERVICES
- --------------------------
SNET NA $294
AT&T NA 243
MISCELLANEOUS (5 PAYEES) NA 13
-----------
TOTAL TELECOMMUNICATION SERVICES $550
===========
TEMPORARY EMPLOYMENT SERVICES
- -----------------------------
MANPOWER INC NA $576
INST OF NUCLEAR POWER OPERATORS NA 146
-----------
TOTAL CONSULTING SERVICES $722
===========
WASTE DISPOSAL SERVICES
- -----------------------
CHEM NUCLEAR SYSTEMS INC NA $861
SCIENTIFIC ECOLOGY GROUP INC NA 377
PM REFUSE REMOVAL SERVICE INC NA 149
-----------
TOTAL WASTE DISPOSAL SERVICES $1,387
===========
WATER TREATMENT SERVICES
- ------------------------
ECOLOCHEM NA $1,010
-----------
TOTAL WATER TREATMENT SERVICES $1,010
===========
OTHER SERVICES
- --------------
BURSON MARSTELLER NA $1,897
JANUS MANAGEMENT ASSOCIATES NA 120
THERMO NUTECH NA 120
ADEPT, INC NA 113
MISCELLANEOUS (355 PAYEES) NA 3,293
-----------
TOTAL OTHER SERVICES $5,543
===========
NORTHEAST UTILIITES SERVICE COMPANY
(Supplies centralized accounting,
administrative, data processing,
engineering, financial, legal,
operational, planning, purchasing
and other services) A $12,486
===========
GRAND TOTAL $45,055
===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
OUTSIDE SERVICES EMPLOYED FOR PAYEES GREATER THAN $100,000
PAYEE NAME DESCRIPTION OF SERVICES RENDERED
- ----------------------------------------------------------------------------------------------------
<S> <S>
Engineering Services
- --------------------
Cataract Inc Provide Millstone Technical Support In Design Basis Resolution And
Other Work Required For Startup.
General Electric Furnish Low Voltage Switchgear And Transformers
NUCON Audit Performance Of QA Activities Associated With NUPOC Facilities
and Engineering Services
Mariner Engineering Inc Provide Knowledgeable Staff Assistant To Support Millstone Instrument
& Control
Raytheon Quality Programs Div Provide Services To Support Mp3 Fsar [Design] Review Effort
Contract Solutions Provide Services To Support The Restart Activities Assessment
Stone & Webster Engineering Provide Engineering Services
Yankee Atomic Electric Co Furnish Engineering Services As Required To Support The Independent
Assessment Team
American Scientific Inc Furnish The Engineering Services To Support The 50.54(F) Response And
Restart
ABB Combustion Engineering Provide Engineering Services
Duke Engineering & Services Furnish Engineering Services As Required To Provide Small Bore Piping
Qualifications For Millstone Unit 1
Altran Corp Provide Engineering Services To Assist With: Motor Operated Valves,
Erosion/Corrosion
General Physics Corp Provide Consulting Services To Support Independent Assessment For
Restart Activities For The Nuclear Units
Mdm Engineering Corp Furnish Engineering Services For A Revision To The Emergency
Operating Procedure Setpoint Calculation
Onsite Furnish Engineering Support For The 10 Cfr 50.54 (F) Configuration
Management Reviews At Millstone
Framatome Technologies Esp Furnish The Engineering Services Of Task Coordinators For Planning
and Outage Management
Stone & Webster Const Co Inc Provide Labor And Supervision For NUSOER 92-02 Non-Crd Support
Modification
Legal Services
- --------------
Morgan Lewis & Bockius Llp Furnish Legal Services On An As Requested Basis
Winston & Strawn Furnish Legal Services On An As Requested Basis
Day Berry & Howard Furnish Legal Services On An As Requested Basis
Updike Kelly & Spellacy Furnish Legal Services On An As Requested Basis
Security Services
- -----------------
Burns Intl Security Services Furnish Security Services And Equipment For Baseline Security Support
C & G Video Systems Inc Provide Close Circuit T.V. Camera And Monitoring Support As Needed
Telecommunication Services
- --------------------------
SNET Provide Telephone Services
AT&T Provide Telephone Services
Temporary Employment Services
- -----------------------------
Manpower Inc Furnish Temporary Labor Services
Inst of Nuclear Power Oper Provide The Services Of Employees Loaned To Member Companies
Waste Disposal Services
- -----------------------
Chem Nuclear Systems Inc Provide Radioactive Material Transportation Services And Equipment
Scientific Ecology Group Inc Furnish Super Compaction, Incineration And/Or Other Volume Reduction
Services
PM Refuse Removal Service Inc Furnish Rubbish/Recyclable Services At Millstone
Water Treatment Services
- -------------------------
Ecolochem Provide Water Treatment Purification Services
Other Services
- ---------------
Burson Marsteller Provide Consulting Services For Capacity Communication And Other
Nuclear Issues
Janus Management Associates Furnish Consulting Services In Connection With Watch List Matters
Thermo Nutech Furnish Waste Stream Analysis With Periodic Sampling/Support Current
10cfr, Part 61 Compliance Program
Adept Inc Provide Programming Support/Services
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANUY
For the Year Ended December 31, 1996
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)
<S> <C>
Pension Plan $8,105
Supplemental Retirement and Savings Plan 3,220
Post Retirement Medical Benefit - FAS 106 3,638
Early Retirement Program 213
Group Life, Long-term Disability, Hospital
and Medical Insurance Expenses 8,313
System Newspaper 50
Other Employee Benefits Expenses 32
---------
TOTAL $23,571
=========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
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)
<S> <C>
---------
TOTAL $ -
=========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
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)
<S> <C>
Services billed from Northeast Utilities Service $1,693
Company (an associate company)
Other miscellaneous expenses 6
---------
TOTAL $1,699
=========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
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)
<S> <C>
Buildings/office space $99
Computer/office equipment 119
Vehicles 870
Simulator 5,490
Services billed from Northeast Utilities Service
Company (an associate company) 5,301
---------
TOTAL $11,879
=========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
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)
<S> <C>
(1) Other Than U.S. Government Taxes:
Connecticut Unemployment $602
Massachusetts Unemployment 16
Massachusetts Universal Health Tax 1
Local property 1,148
Connecticut Sales Tax 5
Connecticut Hazardous Waste Transportation Tax 1
---------
Sub-Total 1,773
---------
(2) U.S. Government Taxes:
Federal Insurance Contribution Act 6,720
Medicare Tax 1,835
Federal Unemployment 145
Federal Excise 243
---------
Sub-Total 8,943
---------
TOTAL 10,716
=========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
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>
Services billed from Northeast Utilities $16
Service Company (an associate company)
Miscellaneous (28 payees) 3
----------
TOTAL $19
==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
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)
<S> <C>
Executive incentive
compensation plan Various Officers $27
Services billed from Northeast
Utilities Service Company
(an associate company) 362
Civil Penalties
United States Nuclear
Regulatory Commission 100
Miscellaneous (2 items) 1
--------
TOTAL $490
========
</TABLE>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1996
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, 1996)
President and Chief Executive Officer - Nuclear
- Senior Vice President and Chief Nuclear Officer - Millstone Station
- Unit Officer (Millstone Unit #1)
- Unit Officer (Millstone Unit #2)
- Unit Officer (Millstone Unit #3)
NORTHEAST NUCLEAR ENERGY COMPANY
--------------------------------
METHODS OF ALLOCATION
---------------------
For the year ended December 31, 1996
------------------------------------
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 1996:
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 1996:
(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 Comapnies" 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 25, 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-31-1996 DEC-31-1995
<PERIOD-END> DEC-31-1996 DEC-31-1995
<BOOK-VALUE> PER-BOOK PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 28,471 29,962
<TOTAL-INVESTMENTS> 0 0
<TOTAL-CURRENT-ASSETS> 187,978 149,564
<TOTAL-DEFERRED-DEBITS> 21,713 13,392
<OTHER-ASSETS-AND-DEBITS> 0 0
<TOTAL-ASSETS-AND-DEBITS> 238,162 192,918
<TOTAL-PROPRIETARY-CAPITAL> 16,232 16,298
<TOTAL-LONG-TERM-DEBT> 24,182 24,573
<NOTES-PAYABLE> 0 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 0 0
<OTHER-CURR-AND-ACCRUED-LIAB> 180,912 130,915
<TOTAL-DEFERRED-CREDITS> 16,836 21,132
<DEFERRED-INCOME-TAX> 0 0
<TOT-LIABIL-AND-PROPRIET-CAP> 238,162 192,918
<SERVICES-ASSOCIATE-COMPANIES> 409,581 368,726
<SERVICES-NON-ASSOCIATE-COMP> 62,279 48,890
<MISC-INCOME-OR-LOSS> 2,505 1,394
<TOTAL-INCOME> 474,365 419,010
<SALARIES-AND-WAGES> 86,317 88,037
<EMPLOYEE-PENSION-AND-BENEFIT> 23,571 25,142
<OTHER-EXPENSES> 362,545 303,920
<TOTAL-EXPENSES> 472,433 417,099
<NET-INCOME> 1,932 1,911
<TOTAL-EXPENSES-DIRECT-COST> 469,504 414,102
<TOTAL-EXPENSES-INDIRECT-COST> 0 0
<TOT-EXP-DIRECT-AND-INDIRECT> 469,504 414,102
<PERSONNEL-END-OF-YEAR> 1,274 1,316
</TABLE>
