Form U -13 - 60
Mutual and Subsidiary Service Companies
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1999 and Ending December 31, 1999
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 Account 920 26
OUTSIDE SERVICES EMPLOYED Account 923 27
EMPLOYEE PENSIONS AND BENEFITS Account 926 28
GENERAL ADVERTISING EXPENSES Account 930.1 29
MISCELLANEOUS GENERAL EXPENSES Account 930.2 30
RENTS Account 931 31
TAXES OTHER THAN INCOME TAXES Account 408 32
DONATIONS Account 426.1 33
OTHER DEDUCTIONS Account 426.5 34
NOTES TO STATEMENT OF INCOME Schedule 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
------- --------------------------------------------------------- ------------ ---------
1999 1998
SERVICE COMPANY PROPERTY (Thousands of Dollars)
------------------------
<S> <C> <C>
101 Service company property (Schedule II) $ 37,555 $ 39,152
107 Construction work in progress (Schedule II) 555 6,199
-------- --------
Total Property 38,110 45,351
-------- --------
108 Less accumulated provision for depreciation and
amortization of service company property (Schedule III) 15,182 14,527
-------- --------
Net Service Company Property 22,928 30,824
-------- --------
INVESTMENTS
-----------
123 Investments in associate companies (Schedule IV) - -
124 Other investments (Schedule IV) - -
-------- --------
Total Investments - -
-------- --------
CURRENT AND ACCRUED ASSETS
--------------------------
131 Cash - 776
134 Special deposits - -
135 Working funds - 2
136 Temporary cash investments (Schedule IV) - -
141 Notes receivable 1 -
143 Accounts receivable 5,028 4,388
144 Accumulated provision of uncollectible accounts - -
146 Accounts receivable from associate companies (Schedule V) 74,176 71,688
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies 73,805 68,787
163 Stores expense undistributed (Schedule VII) (6) (6)
165 Prepayments 1,983 1,675
174 Miscellaneous current and accrued assets (Schedule VIII) - -
-------- --------
Total Current and Accrued Assets 154,987 147,310
-------- --------
DEFERRED DEBITS
---------------
181 Unamortized debt expense 27 87
184 Clearing accounts 160 198
186 Miscellaneous deferred debits (Schedule IX) 23,212 10,318
188 Research, development, or demonstration
expenditures (Schedule X) - -
189 Unamortized loss on reacquired debt - -
190 Accumulated deferred income taxes 37,941 24,503
-------- --------
Total Deferred Debits 61,340 35,106
-------- --------
TOTAL ASSETS AND OTHER DEBITS $239,255 $213,240
======== ========
</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
------- --------------------------------------------------------- ------------ ---------
1999 1998
PROPRIETARY CAPITAL (Thousands of Dollars)
-------------------
<S> <C> <C>
201 Common stock issued (Schedule XI) $ 15 $ 15
211 Miscellaneous paid-in-capital (Schedule XI) 15,229 15,229
215 Appropriated retained earnings (Schedule XI) - -
216 Unappropriated retained earnings (Schedule XI) 675 923
-------- -------
Total Proprietary Capital 15,919 16,167
-------- -------
LONG-TERM DEBT
--------------
223 Advances from associate companies (Schedule XII) - -
224 Other long-term debt (Schedule XII) 6,011 12,022
225 Unamortized premium on long-term debt - -
226 Unamortized discount on long-term debt-debit - -
-------- -------
Total Long-Term Debt 6,011 12,022
-------- -------
CURRENT AND ACCRUED LIABILITIES
-------------------------------
231 Notes payable - -
232 Accounts payable 51,716 48,667
233 Notes payable to associate companies (Schedule XIII) 5,500 -
234 Accounts payable to associate companies (Schedule XIII) 12,801 2,089
236 Taxes accrued 10,442 11,534
237 Interest accrued - -
238 Dividends declared - -
241 Tax collections payable (5) 975
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 110,536 103,345
-------- --------
Total Current and Accrued Liabilities 190,990 166,610
-------- --------
DEFERRED CREDITS
----------------
253 Other deferred credits 25,290 17,330
255 Accumulated deferred investment tax credits 1,045 1,111
-------- --------
Total Deferred Credits 26,335 18,441
-------- --------
282 ACCUMULATED DEFERRED INCOME TAXES - -
--------------------------------- -------- --------
TOTAL LIABILITES AND PROPRIETARY CAPITAL $239,255 $213,240
======== ========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
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 $33,282 $ 50 $ 7 $33,325
322 REACTOR PLANT EQUIPMENT
324 ACCESSORY ELECTRIC EQUIPMENT 27 27
325 MISCELLANEOUS POWER PLANT
EQUIPMENT 4,575 1,640 2,935
391 OFFICE FURNITURE AND EQUIPMENT 1,268 1,268
---------- --------- ----------- ---------- ----------
SUB-TOTAL 39,152 50 1,647 0 37,555
---------- --------- ----------- ---------- ----------
107 CONSTRUCTION WORK IN
PROGRESS (4) 6,199 (5,644) 555
---------- --------- ----------- ---------- ----------
TOTAL $45,351 ($5,594) $1,647 $0 $38,110
========== ========= =========== ========== ==========
- -------------------------------------------------------------------------------------------
(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, 1999
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 $10,562 $1,416 $ 0 $ 0 $11,978
322 REACTOR PLANT EQUIPMENT 0 0 0 0 0
324 ACCESSORY ELECTRIC EQUIPMENT 14 0 0 0 14
325 MISCELLANEOUS POWER PLANT
EQUIPMENT 3,182 332 1,647 511 2,378
391 OFFICE FURNITURE AND FIXTURES 769 43 0 0 812
---------- --------- ----------- ---------- ----------
TOTAL $14,527 $1,791 $1,647 $511 $15,182
========== ========= =========== ========== ==========
- -------------------------------------------------------------------------------------------
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
Depreciation charged to clearing account $ 74
Removal costs charged to reserve 437
----------
$511
==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
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, 1999
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 $25,900 $ -
Northeast Utilities (Parent) - 3
Northeast Generation Services Company - 2
The Connecticut Light and Power Company 36,559 33,490
Western Massachusetts Electric Company 8,572 7,856
Northeast Utilities Service Company 540 32,781
North Atlantic Energy Service Corporation 92 18
Public Service Company of New Hampshire 25 26
------- -------
TOTAL $71,688 $74,176
======= =======
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
See page 10A for details.
</TABLE>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
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)
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
The Connecticut Light and Power Company $ 8,589
Western Massachusetts Electric Company 2,001
Public Service Company of New Hampshire 4
North Atlantic Energy Service Corporation 275
Northeast Generation Services Company 1
Northeast Utilities Service Company 845
-------
TOTAL $11,715
=======
Convenience payments result primarily from the following items:
Engineering Services $ 209
Consulting Services 287
Nuclear Fuel 5,516
Temporary Personnel Services 195
Donations 1,650
Legal Settlement 3,358
Miscellaneous (126 items) 500
-------
TOTAL $11,715
=======
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
SCHEDULE VI - FUEL STOCK EXPENSES UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect
to fuel stock expenses during the year and indicate amount
attributable to each associate company. Under the section
headed "Summary" listed below, give an overall report of the
fuel functions performed by the service company.
- -------------------------------------------------------------------------------
DESCRIPTION LABOR EXPENSES TOTAL
- -------------------------------------------------------------------------------
(Thousands of Dollars)
ACCOUNT 152 - FUEL STOCK EXPENSES
UNDISTRIBUTED $ - $ - $ -
======== ======== ========
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
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, 1999 ($6)
----------
Activity for the year:
Stores expense undistributed $3,230 $3,660 6,890
The above stores expenses are billed back
to each of the companies listed below:
The Connecticut Light & Power Company (2,314) (2,622) (4,936)
Western Massachusetts Electric Company (541) (613) (1,154)
Public Service Company of New Hampshire (31) (35) (66)
Nonassociate Companies (see page 22
for list of the companies) (344) (390) (734)
--------- ---------- ----------
Stores expense distributed (3,230) (3,660) (6,890)
--------- ---------- ----------
Net Activity for year $ 0 $ 0 0
========= ========== ----------
Ending Balance as of December 31, 1999 ($6)
==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
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, 1999
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
Long term receivable from Rocky River
Realty Company (associated company) $ 6,236 $ 5,896
Contractual retainage 634 -
Financial system development costs 1,032 -
RABBI Trust funding 952 952
Connecticut sales tax under protest 99 72
Employee performance payments - 131
External audit - Millstone Unit No. 3 53 -
Unfunded supplemental executive retirement plan 1,061 987
Decommissioning costs - Millstone Unit No. 1 231 14,099
Restricted stock - unearned compensation 11 11
Costs billed to Pilgrim Station for
transfer of spare station transformer - 869
Stores expense clearing - 203
Other deferred debits
(4 items in 1999 and 3 items in 1998) 9 (8)
------- -------
TOTAL $10,318 $23,212
======= =======
</TABLE>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
SCHEDULE X
RESEARCH, DEVELOPMENT, OR DEMONSTRATION EXPENDITURES
INSTRUCTIONS: Provide a description of each material research, development,
or demonstration project which incurred costs by the service
corporation during the year.
- -------------------------------------------------------------------------------
DESCRIPTION AMOUNT
- -------------------------------------------------------------------------------
(Thousands of Dollars)
ACCOUNT 188 - RESEARCH, DEVELOPMENT OR
DEMONSTRATION EXPENDITURES
EPRI Research Dues $1,075
Services Billed from Northeast Utilities
Service Company (Associated Company) 42
EPRI - CE RPS/PPS Obsolescense and Maintainability 16
Miscellaneous Projects 6
The above expenses are billed back to each of the
associated companies listed below:
The Connecticut Light and Power Company (794)
Western Massachusetts Electric Company (185)
Public Service Company of New Hampshire (13)
Nonassociate Companies (see page 22 for list
of the companies) (147)
------
TOTAL $ 0
======
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
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 $15,229
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS -
---------
TOTAL $15,229
=========
- ------------------------------------------------------------------------------------------
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 $923 $1,752 $2,000 $675
--------- --------- --------- ---------
TOTAL $923 $1,752 $2,000 $675
========= ========= ========= =========
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
---------------------- ------------ ------------- ---------
$1,333.33 $1,999,995 11/12/99 11/17/99
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
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 5/2000 7.67% $25,000 $12,022 $0 $6,011 $6,011
-----------------------------------------------
TOTAL OTHER LONG-TERM DEBT $25,000 $12,022 $0 $6,011 $6,011
===============================================
</TABLE>
(1) GIVE AN EXPLANATION OF DEDUCTIONS:
Principal payment.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
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
Northeast Utilities System Money Pool $ - $ 5,500
-------- --------
TOTAL $ - $ 5,500
======== ========
- ------------------------------------------------------------------------------------------
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
The Connecticut Light and Power Company $ 1,092 ($350)
Western Massachusetts Electric Company 47 75
Northeast Utilities Service Company 750 11,674
Northeast Utilities 195 249
Public Service Company of New Hampshire - 2
North Atlantic Energy Service Corporation 5 5
Northeast Generation Services Company - 1,146
-------- --------
TOTAL $ 2,089 $ 12,801
======== ========
- ------------------------------------------------------------------------------------------
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES
Millstone 3 Funding Liability $ 51,304 $ 27,249
Pension Cost 42,075 68,070
Employee Stock Option Plan Accrual - 1,008
Performance Reward Program 6,310 11,893
Payroll Accrual 3,819 3,119
Severance Accrual (158) (817)
Miscellaneous (7 items) (5) 14
-------- --------
TOTAL $103,345 $110,536
======== ========
</TABLE>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
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 companies comprising
the Northeast Utilities system (NU system) and are wholly owned by NU.
NNECO acts as agent for the NU system companies and other New England
utilities in operating the Millstone nuclear units. Millstone 1 and 2
are wholly owned by CL&P and WMECO. Millstone 3 is owned by CL&P, PSNH,
WMECO, and other nonaffiliated utilities. The costs of the nuclear units
are recorded on the books of CL&P, PSNH, WMECO, and the nonaffiliated
utilities in their proportionate ownership shares.
Other wholly owned subsidiaries of NU provide support services for the
NU system companies and, in some cases, for other New England utilities.
Northeast Utilities Service Company (NUSCO) provides centralized
accounting, administrative, data processing, engineering, financial,
legal, operational, planning, purchasing, and other services to the NU
system companies. North Atlantic Energy Service Corporation has
operational responsibility of the Seabrook nuclear power plant.
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 as a holding
company under the Public Utility Holding Company Act of 1935 (the 1935
Act). NU and its subsidiaries, including NNECO, 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 rates 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 5 percent in 1999 and 4.6 percent in 1998.
2. LEASES
The company has entered into lease agreements with two unaffiliated third
parties for the use of nuclear control room simulators for Millstone 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.
Capital lease rental payments charged to operating expenses amounted to
$6.6 million in 1999 and $4.8 million in 1998 and 1997. Operating lease
rental payments charged to operating expenses amounted to $1.2 million
in 1999, $5.1 million in 1998 and $6.1 million in 1997.
Interest included in capital lease rental payments for 1999, 1998, and
1997 was $0.7 million, $1.2 million, and $1.6 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, 1999, are approximately:
Period Capital Leases Operating Leases
------ -------------- ----------------
(Thousands of Dollars)
2000 $3,400 $147
2001 900 59
2002 - 32
2003 - 18
2004 - 11
After 2004 - 14
------ ----
Future minimum lease payments 4,300 $281
Less amount representing interest 1,400
------
Present value of future minimum
lease payments $2,900
======
3. SHORT-TERM DEBT
Certain subsidiaries of NU, including NNECO, are members of the NU System
Money Pool (Pool). The Pool provides a more efficient use of the cash
resources of the NU 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, 1999 and 1998, NNECO
had $5.5 million and no borrowings, respectively, outstanding from the
Pool. The interest rate on borrowings from the Pool at December 31, 1999,
was 4.88 percent.
4. LONG-TERM DEBT
Detail of long-term debt outstanding is:
---------------------------------------------------------------------
December 31, 1999 1998
---------------------------------------------------------------------
(Millions of Dollars)
7.67% Senior Notes, due 2000................. $6.0 $12.0
Less: Amounts due within one year........... 6.0 6.0
---- -----
Long-term debt, net.......................... $ 0 $ 6.0
==== =====
Cash sinking-fund requirements on debt outstanding at December 31, 1999
are $6.0 million for 2000. There are no cash sinking-fund requirements
after 2000.
5. PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS
The NU system subsidiaries, including NNECO, participate in a uniform
noncontributory defined benefit retirement plan covering all regular NU
system employees. Benefits are based on years of service and the
employees' highest eligible compensation during 60 consecutive months of
employment. NNECO's direct portion of the NU system's pension cost, part
of which was charged to utility plant, was $10.9 million in 1999 and $6.2
million in 1998.
Currently, NNECO 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 (the Code).
The NU system subsidiaries, including NNECO, also provide certain health
care benefits, primarily medical and dental, and life insurance benefits
through a benefit plan to retired employees. These benefits are available
for employees retiring from the NU system who have met specified service
requirements. For current employees and certain retirees, the total
benefit is limited to two times the 1993 per-retiree health care cost.
These costs are charged to expense over the future estimated worklife of
the employee. The NU system companies, including NNECO, fund
postretirement costs through external trusts with amounts that have been
rate-recovered and which also are tax deductible under the Code.
Pension and trust assets are invested primarily in domestic and
international equity securities and bonds.
The following table represents information on the plans' beginning benefit
obligation, fair value of plan assets and respective plans' funded status.
The components of net cost are:
---------------------------------------------------------------------------
At December 31,
---------------------------------------------------------------------------
Pension Postretirement
Benefits Benefits
1999 1998 1999 1998
---------------------------------------------------------------------------
(Millions of Dollars)
Change in benefit obligation
Benefit obligation at beginning
of year........................ $(140.0) $(111.4) $(19.3) $(15.2)
Service cost..................... (10.1) (7.2) (1.5) (1.0)
Interest cost.................... (11.8) (8.6) (1.6) (1.3)
Transfers........................ (13.2) (5.4) - -
Plan amendment................... (7.4) - - -
Actuarial (loss)/gain............ 4.6 (10.2) (1.2) (2.8)
Benefits paid.................... 3.0 2.8 1.2 1.0
Curtailments and settlements..... (15.1) - - -
---------------------------------------------------------------------------
Benefit obligation at
end of year.................... $(190.0) $(140.0) $(22.4) $(19.3)
---------------------------------------------------------------------------
Change in plan assets
Fair value of plan assets at
beginning of year.............. $ 121.0 $ 103.9 $ 11.9 $ 10.0
Actual return on plan assets.... 47.3 14.5 1.5 1.3
Employer contribution............ - - 2.3 1.6
Benefits paid.................... (3.0) (2.8) (1.2) (1.0)
Transfers........................ (13.1) 5.4 - -
---------------------------------------------------------------------------
Fair value of plan assets at
end of year.................... 152.2 $ 121.0 $ 14.5 $ 11.9
---------------------------------------------------------------------------
Funded status at December 31..... (37.8) $ (19.0) (7.9) $ (7.3)
Unrecognized transition amount... (1.3) (1.4) 3.6 3.9
Unrecognized prior service cost.. 10.1 3.5 - -
Unrecognized net gain............ (39.1) (25.2) 4.3 3.4
---------------------------------------------------------------------------
Accrued benefit cost............. $ (68.1) $ (42.1) $ - $ -
---------------------------------------------------------------------------
The following actuarial assumptions were used in calculating the plans'
year-end funded status:
---------------------------------------------------------------------------
At December 31,
---------------------------------------------------------------------------
Pension Postretirement
Benefits Benefits
1999 1998 1999 1998
---------------------------------------------------------------------------
Discount rate.................... 7.75% 7.00% 7.75% 7.00%
Compensation/progression rate.... 4.75% 4.25% 4.75% 4.25%
Health care cost trend rate (a).. N/A N/A 5.57% 5.22%
---------------------------------------------------------------------------
(a) The annual growth in per capita cost of covered health care benefits
was assumed to decrease to 4.90 percent by 2001.
The components of net periodic benefit cost are:
---------------------------------------------------------------------------
For the Years Ended December 31,
---------------------------------------------------------------------------
Pension Postretirement
Benefits Benefits
1999 1998 1999 1998
---------------------------------------------------------------------------
(Millions of Dollars)
Service cost..................... $ 10.1 $ 7.2 $ 1.5 $ 1.0
Interest cost.................... 11.8 8.6 1.6 1.3
Expected return on plan assets... (11.4) (8.8) (0.9) (0.7)
Amortization of unrecognized
transition (asset)/obligation.. (0.2) (0.2) 0.3 0.2
Amortization of prior
service cost................... 0.8 0.2 - -
Amortization of actuarial gain... (0.2) (0.8) - -
Other amortization, net.......... - - (0.2) (0.2)
---------------------------------------------------------------------------
Net periodic benefit cost........ $ 10.9 $ 6.2 $ 2.3 $ 1.6
---------------------------------------------------------------------------
For calculating pension and postretirement benefit costs, the following
assumptions were used:
---------------------------------------------------------------------------
For the Years Ended December 31,
---------------------------------------------------------------------------
Pension Postretirement
Benefits Benefits
1999 1998 1999 1998
---------------------------------------------------------------------------
Discount rate.................... 7.00% 7.25% 7.00% 7.25%
Expected long-term rate
of return...................... 9.50% 9.50 N/A N/A
Compensation/progression rate.... 4.25% 4.25% 4.25% 4.25%
Long-term rate of return-
Health assets, net of tax........ N/A N/A 7.50% 7.75%
Life assets...................... N/A N/A 9.50% 9.50%
---------------------------------------------------------------------------
Assumed health care cost trend rates have a significant effect on the
amounts reported for the health care plans. The effect of changing the
assumed health care cost trend rate by one percentage point in each year
would have the following effects:
---------------------------------------------------------------------------
One Percentage One Percentage
(Millions of Dollars) Point Increase Point Decrease
---------------------------------------------------------------------------
Effect on total service and
interest cost components....... $0.1 $(0.1)
Effect on postretirement
benefit obligation.............. $0.8 $(0.9)
The trust holding the health plan assets is subject to federal income
taxes.
6. NUCLEAR GENERATION ASSETS
Millstone 3 received the appropriate Nuclear Regulatory Commission (NRC)
approvals and resumed operation in July 1998. Millstone 2 received similar
NRC approvals and resumed operation in May 1999. Millstone 1 is currently
in decommissioning status.
An auction of the NU system's ownership interests in the Millstone units
is expected in 2000 with a closing in 2001. Based on regulatory decisions
received in 1999, management expects to recover all of its remaining
nuclear stranded costs from retail customers.
7. MERGER AGREEMENT WITH CONSOLIDATED EDISON, INC.
On October 13, 1999, NU and Consolidated Edison, Inc. (Con Edison)
announced that they have agreed to a merger to combine the two companies.
The shareholders of NU will receive $25 per share in combination of cash
and Con Edison common stock.
NU shareholders also have the right to receive an additional $1 per share
if a definitive agreement to sell its interests (other than that now held
by PSNH) in Millstone 2 and 3 is entered into and recommended by the
Utility and Management Unit of the Connecticut Department of Public Utility
Control on or prior to the later of December 31, 2000, or the closing of
the merger. Further, the value of the amount of cash or common stock to be
received by NU shareholders is subject to increase by an amount of $0.0034
per share per day for each day that the transaction does not close after
August 5, 2000.
Upon completion of the merger, NU will become a wholly owned subsidiary
of Con Edison. The purchase is subject to the approval of the shareholders
of both companies and several regulatory agencies. The companies
anticipate that these regulatory procedures can be completed by July 2000.
8. MERGER AGREEMENT WITH YANKEE ENERGY SYSTEM, INC.
In June 1999, NU and the Yankee Energy System, Inc. (Yankee) announced an
agreement to merge. On October 12, 1999, Yankee shareholders approved the
proposed merger with NU. On December 20, 1999, the Connecticut Department
of Public Utility Control (DPUC) issued its final decision approving the
merger. In January 2000, the Securities and Exchange Commission granted
final approval of the merger. On March 1, 2000, the merger was consummated
and Yankee became a wholly owned subsidiary of NU. Yankee is the parent
company of the Yankee Gas Service Company, the largest natural gas
distribution company in Connecticut. NU paid $45 per share or $478 million
in cash and stock for all Yankee shares. In addition, NU assumed $164
million of Yankee's outstanding long-term debt and all of its short-term
debt which totaled $70 million in closing.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
FOR THE YEAR ENDED DECEMBER 31, 1999
SCHEDULE XV
COMPARATIVE INCOME STATEMENT
- ---------------------------------------------------------------------------------------
ACCOUNT DESCRIPTION 1999 1998
- ---------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
INCOME
------
457 Services rendered to associate companies $403,527 $470,221
458 Services rendered to nonassociate companies 67,461 61,445
421 Miscellaneous income or loss 1,567 2,848
-------- --------
Total Income 472,555 534,514
-------- --------
EXPENSE
-------
Nuclear Power Expenses
517 Operation Supervision and Engineering 72,106 94,451
519 Coolants and Water 5,304 4,743
520 Steam Expenses 33,160 27,362
523 Electric Expenses 10,196 10,540
524 Miscellaneous Nuclear Power Expenses 66,980 78,377
525 Rents 5,469 5,725
528 Maintenance Supervision and Engineering 51,102 69,036
529 Maintenance of Structures 18,432 14,332
530 Maintenance of Reactor Plant Equipment 54,784 88,581
531 Maintenance of Electric Plant 40,791 51,885
532 Maintenance of Miscellaneous Nuclear Plant 567 500
Transmission Expenses
560 Operation Supervision and Engineering 1 0
562 Station Expenses 1,367 1,468
566 Miscellaneous Transmission Expenses 0 0
568 Maintenance Supervision and Engineering 0 0
569 Maintenance of Structures 0 0
570 Maintenance of Station Equipment 0 0
Administrative and General Expenses
920 Salaries and wages 15,751 12,469
921 Office supplies and expenses 4,115 6,969
922 Administrative expense transferred-credit
923 Outside services employed 16,544 16,469
924 Property insurance (1,406) 1,098
925 Injuries and damages 5,225 4,462
926 Employee pensions and benefits 44,348 20,758
928 Regulatory commission expense 163 15
930.1 General advertising expenses 0 0
930.2 Miscellaneous general expenses 946 398
931 Rents 3,728 3,002
932 Maintenance of structures and equipment 553 601
All other expenses
403 Depreciation and amortization expense 1,791 1,768
408 Taxes other than income taxes 12,739 12,860
409 Income taxes 14,423 1,798
410 Provision for deferred income taxes 688 1,467
411 Provision for deferred income taxes-credit (14,304) (5,509)
411.5 Investment tax credit (65) (65)
426.1 Donations 94 32
426.5 Other deductions 2,146 4,195
427 Interest on long-term debt 1,360 1,907
430 Interest on debt to associate companies 652 14
431 Other interest expense 1,053 747
-------- --------
Total Expense 470,803 532,455
-------- --------
Net Income $ 1,752 $ 2,059
======== ========
</TABLE>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
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
----------------------------------------------
The Connecticut Light and
Power Company $318,725 $3,600 $322,325
Western Massachusetts
Electric Company 74,376 843 75,219
Public Service Company
of New Hampshire 5,953 30 5,983
-------- ------- ------ --------
TOTAL $399,054 $ 0 $4,473 $403,527
======== ======= ====== ========
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
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 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Central Maine Power Company 5,230 26 5,256 5,256
Central Vermont Public Service 3,623 18 3,641 3,641
Montaup Electric Co. 8,376 42 8,418 8,418
New England Power Co. 25,632 127 25,759 25,759
United Illuminating Company 7,694 37 7,731 7,731
Fitchburg Gas & Electric Co. 455 2 457 457
Chicopee Municipal Electric 2,854 14 2,868 2,868
Massachusetts Municipal
Wholesale 10,125 50 10,175 10,175
Lyndonville Electric Department 103 1 104 104
Connecticut Municipal Electric
Coop 2,284 11 2,295 2,295
Vermont Electric Gen & Trans. 753 4 757 757
-------------------------------------------------------------
$67,129 $ 0 $332 $67,461 $ 0 $67,461
=============================================================
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>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
- ----------------------------------------------------------------------------
ASSOCIATE COMPANY CHARGES
--------------------------
ACCOUNT DIRECT INDIRECT
NUMBER DESCRIPTION OF ITEMS COST COST TOTAL
- ---------------------------------------------------------------------------
Nuclear Power Expenses
517 OPERATION SUPERVISION AND ENGINEERING $ 62,414 $0 $ 62,414
519 COOLANTS AND WATER 4,514 0 4,514
520 STEAM EXPENSES 27,979 0 27,979
523 ELECTRIC EXPENSES 8,778 0 8,778
524 MISCELLANEOUS NUCLEAR POWER EXPENSES 58,214 0 58,214
525 RENTS 4,397 0 4,397
528 MAINTENANCE SUPERVISION AND ENGINEERING 41,995 0 41,995
529 MAINTENANCE OF STRUCTURES 16,249 0 16,249
530 MAINTENANCE OF REACTOR PLANT EQUIPMENT 45,569 0 45,569
531 MAINTENANCE OF ELECTRIC PLANT 34,284 0 34,284
532 MAINTENANCE OF MISCELLANEOUS NUCLEAR PLANT 527 0 527
Transmission Expenses
560 OPERATION SUPERVISION AND ENGINEERING 1 0 1
562 STATION EXPENSES 112 0 112
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 0 0 0
Administrative and General Expenses
920 SALARIES AND WAGES 13,716 0 13,716
921 OFFICE SUPPLIES AND EXPENSES 3,595 0 3,595
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 15,232 0 15,232
924 PROPERTY INSURANCE (1,389) 0 (1,389)
925 INJURIES AND DAMAGES 4,528 0 4,528
926 EMPLOYEE PENSIONS AND BENEFITS 38,541 0 38,541
928 REGULATORY COMMISSION EXPENSE 146 0 146
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 830 0 830
931 RENTS 3,208 0 3,208
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 481 0 481
All other expenses 0
403 DEPRECIATION AND AMORTIZATION EXPENSES 1,681 0 1,681
408 TAXES OTHER THAN INCOME TAXES 11,140 0 11,140
409 INCOME TAXES 14,452 0 14,452
410 PROVISION FOR DEFERRED INCOME TAXES 688 0 688
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT (14,304) 0 (14,304)
411.5 INVESTMENT TAX CREDIT (65) 0 (65)
426.1 DONATIONS 85 0 85
426.5 OTHER DEDUCTIONS 1,885 0 1,885
427 INTEREST ON LONG-TERM DEBTS 0 0 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0 0 0
431 OTHER INTEREST EXPENSE 1,053 0 1,053
--------------------------
SUBTOTAL EXPENSES = 400,536 0 400,536
COMPENSATION FOR USE OF CAPITAL=
427 INTEREST ON LONG-TERM DEBTS 1,360
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 652
431 OTHER INTEREST EXPENSE 0
525 RENTS 708
---------
TOTAL EXPENSES = 403,256
421 MISCELLANEOUS INCOME - CREDIT (1,481) 0 (1,481)
NET INCOME 1,752
--------------------------
TOTAL COST OF SERVICE = $399,055 $0 $403,527
==========================
INSTRUCTION: Total cost of service will equal for associate and nonassociate
companies the total amount billed under their separate analysis
of billing schedules.
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
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)
Nuclear Power Expenses
517 OPERATION SUPERVISION AND ENGINEERING $ 9,692 $0 $ 9,692
519 COOLANTS AND WATER 790 0 790
520 STEAM EXPENSES 5,181 0 5,181
523 ELECTRIC EXPENSES 1,418 0 1,418
524 MISCELLANEOUS NUCLEAR POWER EXPENSES 8,766 0 8,766
525 RENTS 31 0 31
528 MAINTENANCE SUPERVISION AND ENGINEERING 9,107 0 9,107
529 MAINTENANCE OF STRUCTURES 2,183 0 2,183
530 MAINTENANCE OF REACTOR PLANT EQUIPMENT 9,215 0 9,215
531 MAINTENANCE OF ELECTRIC PLANT 6,507 0 6,507
532 MAINTENANCE OF MISCELLANEOUS NUCLEAR PLANT 40 0 40
Transmission Expenses
560 OPERATION SUPERVISION AND ENGINEERING 0 0 0
562 STATION EXPENSES 1,255 0 1,255
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 0 0 0
Administrative and General Expenses
920 SALARIES AND WAGES 2,035 0 2,035
921 OFFICE SUPPLIES AND EXPENSES 520 0 520
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 1,312 0 1,312
924 PROPERTY INSURANCE (17) 0 (17)
925 INJURIES AND DAMAGES 697 0 697
926 EMPLOYEE PENSIONS AND BENEFITS 5,807 0 5,807
928 REGULATORY COMMISSION EXPENSE 17 0 17
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 116 0 116
931 RENTS 520 0 520
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 72 0 72
All other expenses 0
403 DEPRECIATION AND AMORTIZATION EXPENSES 110 0 110
408 TAXES OTHER THAN INCOME TAXES 1,599 0 1,599
409 INCOME TAXES (29) 0 (29)
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 9 0 9
426.5 OTHER DEDUCTIONS 261 0 261
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 = 67,214 0 67,214
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 333
---------
TOTAL EXPENSES = 67,547
421 MISCELLANEOUS INCOME - CREDIT (86) 0 (86)
NET INCOME 0
---------------------------
TOTAL COST OF SERVICE = $67,128 $0 $67,461
===========================
INSTRUCTION: Total cost of service will equal for associate and nonassociate
companies the total amount billed under their separate analysis
of billing schedules.
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
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
- -------------------------------------------------------------------------------
Nuclear Power Expenses
517 OPERATION SUPERVISION AND ENGINEERING $ 72,106 $0 $ 72,106
519 COOLANTS AND WATER 5,304 0 5,304
520 STEAM EXPENSES 33,160 0 33,160
523 ELECTRIC EXPENSES 10,196 0 10,196
524 MISCELLANEOUS NUCLEAR POWER EXPENSES 66,980 0 66,980
525 RENTS 4,428 0 4,428
528 MAINTENANCE SUPERVISION AND ENGINEERING 51,102 0 51,102
529 MAINTENANCE OF STRUCTURES 18,432 0 18,432
530 MAINTENANCE OF REACTOR PLANT EQUIPMENT 54,784 0 54,784
531 MAINTENANCE OF ELECTRIC PLANT 40,791 0 40,791
532 MAINTENANCE OF MISCELLANEOUS NUCLEAR PLANT 567 0 567
Transmission Expenses
560 OPERATION SUPERVISION AND ENGINEERING 1 0 1
562 STATION EXPENSES 1,367 0 1,367
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 0 0 0
Administrative and General Expenses
920 SALARIES AND WAGES 15,751 0 15,751
921 OFFICE SUPPLIES AND EXPENSES 4,115 0 4,115
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 16,544 0 16,544
924 PROPERTY INSURANCE (1,406) 0 (1,406)
925 INJURIES AND DAMAGES 5,225 0 5,225
926 EMPLOYEE PENSIONS AND BENEFITS 44,348 0 44,348
928 REGULATORY COMMISSION EXPENSE 163 0 163
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 946 0 946
931 RENTS 3,728 0 3,728
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 553 0 553
All other expenses
403 DEPRECIATION AND AMORTIZATION EXPENSES 1,791 0 1,791
408 TAXES OTHER THAN INCOME TAXES 12,739 0 12,739
409 INCOME TAXES 14,423 0 14,423
410 PROVISION FOR DEFERRED INCOME TAXES 688 0 688
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT (14,304) 0 (14,304)
411.5 INVESTMENT TAX CREDIT (65) 0 (65)
426.1 DONATIONS 94 0 94
426.5 OTHER DEDUCTIONS 2,146 0 2,146
427 INTEREST ON LONG-TERM DEBTS 0 0 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0 0 0
431 OTHER INTEREST EXPENSE 1,053 0 1,053
------------------------------
SUBTOTAL EXPENSES = 467,750 0 467,750
COMPENSATION FOR USE OF CAPITAL=
427 INTEREST ON LONG-TERM DEBTS 1,360
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 652
431 OTHER INTEREST EXPENSE 0
525 RENTS 1,041
----------
TOTAL EXPENSES = 470,803
421 MISCELLANEOUS INCOME - CREDIT (1,567) 0 (1,567)
NET INCOME 1,752
-----------------------------
TOTAL COST OF SERVICE = $466,183 $0 $470,988
=============================
INSTRUCTION: Total cost of service will equal for associate and nonassociate
companies the total amount billed under their separate analysis
of billing schedules.
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
- ----------------------------------------------------------------------------
ACCOUNT TOTAL
NUMBER DESCRIPTION OF ITEMS AMOUNT OVERHEAD
- ----------------------------------------------------------------------------
(Thousands of Dollars)
Nuclear Power Expenses
517 OPERATION SUPERVISION AND ENGINEERING $ 72,106 $ 0
519 COOLANTS AND WATER 5,304 0
520 STEAM EXPENSES 33,160 0
523 ELECTRIC EXPENSES 10,196 0
524 MISCELLANEOUS NUCLEAR POWER EXPENSES 66,980 0
525 RENTS 5,469 1,041
528 MAINTENANCE SUPERVISION AND ENGINEERING 51,102 0
529 MAINTENANCE OF STRUCTURES 18,432 0
530 MAINTENANCE OF REACTOR PLANT EQUIPMENT 54,784 0
531 MAINTENANCE OF ELECTRIC PLANT 40,791 0
532 MAINTENANCE OF MISCELLANEOUS NUCLEAR PLANT 567 0
Transmission Expenses
560 OPERATION SUPERVISION AND ENGINEERING 1 0
562 STATION EXPENSES 1,367 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 0 0
Administrative and General Expenses
920 SALARIES AND WAGES 15,751 0
921 OFFICE SUPPLIES AND EXPENSES 4,115 0
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0
923 OUTSIDE SERVICES EMPLOYED 16,544 0
924 PROPERTY INSURANCE (1,406) 0
925 INJURIES AND DAMAGES 5,225 0
926 EMPLOYEE PENSIONS AND BENEFITS 44,348 0
928 REGULATORY COMMISSION EXPENSE 163 0
930.1 GENERAL ADVERTISING EXPENSES 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 946 0
931 RENTS 3,728 0
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 553 0
All other expenses
403 DEPRECIATION AND AMORTIZATION EXPENSES 1,791 0
408 TAXES OTHER THAN INCOME TAXES 12,739 0
409 INCOME TAXES 14,423 0
410 PROVISION FOR DEFERRED INCOME TAXES 688 0
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT (14,304) 0
411.5 INVESTMENT TAX CREDIT (65) 0
426.1 DONATIONS 94 0
426.5 OTHER DEDUCTIONS 2,146 0
427 INTEREST ON LONG-TERM DEBTS 1,360 1,360
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 652 652
431 OTHER INTEREST EXPENSE 1,053 0
----------------------
TOTAL EXPENSES = 470,803 3,053
======================
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, 1999
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 $ 9,047 $ 32,772 $ 30,287
519 COOLANTS AND WATER 597 2,238 2,469
520 STEAM EXPENSES 4,628 12,331 16,201
523 ELECTRIC EXPENSES 1,676 4,085 4,435
524 MISCELLANEOUS NUCLEAR POWER EXPENSES 11,897 28,889 26,194
525 RENTS 1,093 1,873 1,462
528 MAINTENANCE SUPERVISION AND ENGINEERING 2,558 20,085 28,459
529 MAINTENANCE OF STRUCTURES 1,127 10,479 6,826
530 MAINTENANCE OF REACTOR PLANT EQUIPMENT 4,056 21,915 28,813
531 MAINTENANCE OF ELECTRIC PLANT 1,947 18,497 20,347
532 MAINTENANCE OF MISCELLANEOUS NUCLEAR PLANT 168 275 124
Transmission Expenses
560 OPERATION SUPERVISION AND ENGINEERING 1 0 0
562 STATION EXPENSES 0 0 1,367
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 0 0 0
Administrative and General Expenses
920 SALARIES AND WAGES 3,460 5,648 6,643
921 OFFICE SUPPLIES AND EXPENSES 918 1,538 1,659
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 2,051 3,516 10,977
924 PROPERTY INSURANCE (978) (373) (55)
925 INJURIES AND DAMAGES 902 2,143 2,180
926 EMPLOYEE PENSIONS AND BENEFITS 8,683 17,507 18,158
928 REGULATORY COMMISSION EXPENSE 33 70 60
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 206 355 385
931 RENTS 734 1,367 1,627
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 130 198 225
All other expenses
403 DEPRECIATION AND AMORTIZATION EXPENSES 773 530 488
408 TAXES OTHER THAN INCOME TAXES 3,539 4,201 4,999
409 INCOME TAXES 7,277 7,236 (90)
410 PROVISION FOR DEFERRED INCOME TAXES 344 344 0
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT (7,152) (7,152) 0
411.5 INVESTMENT TAX CREDIT (32) (33) 0
426.1 DONATIONS 28 38 28
426.5 OTHER DEDUCTIONS 543 787 816
427 INTEREST ON LONG-TERM DEBTS 0 0 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0 0 0
431 OTHER INTEREST EXPENSE 526 526 1
------------------------------------
TOTAL EXPENSES = $60,780 $191,885 $215,085
====================================
</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, 1999
SCHEDULE XVII
-------------
KEYS FOR SERVICE FUNCTIONS
--------------------------
KEYS SERVICE FUNCTION
---- ----------------
The individual unit for which NNECO provides
service is listed separately on Page 24.
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
DEPARTMENTAL ANALYSIS OF SALARIES
---------------------------------
DEPARTMENTAL SALARY EXPENSE
NAME OF DEPARTMENT INCLUDED IN AMOUNTS BILLED TO NUMBER OF
- ------------------ --------------------------------------- PERSONNEL
Indicate each dept. TOTAL PARENT OTHER NON END
or service function. AMOUNT COMPANY ASSOCIATES ASSOCIATES OF YEAR
- -------------------- --------------------------------------- ---------
(Thousands of Dollars)
MILLSTONE UNIT #1 $22,062 $0 $ 22,062 $ 0 234
MILLSTONE UNIT #2 57,617 0 57,617 0 676
MILLSTONE UNIT #3 61,137 0 41,575 19,562 941
--------------------------------------- ---------
$140,816 $0 $121,254 $19,562 1,851
======================================= =========
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
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
- --------------------
ABB CE NA $ 1,038
BARTLETT NUCLEAR INC NA 511
BLUE RIDGE TECHNOLOGIES INC NA 153
CATARACT INC NA 1,870
CONTINGENCY MANAGEMENT ASSOC NA 1,727
DUKE ENG & SERVICES INC NA 649
ENTOR CORP NA 277
JANUS MANAGEMENT ASSOCIATES NA 229
LITTLE HARBOR CONSULTANTS INC NA 120
ONSITE NA 1,059
PARSONS POWER GROUP INC NA 380
PECO NUCLEAR NA 159
RCM TECHNOLOGIES INC NA 161
SECORE L L C NA 208
STONE & WEBSTER ENGINEERING NA 467
TATHAM PROCESS ENGINEERING NA 155
TEKTON RESOURCES NA 943
TELEDYNE ENGINEERING SERVICES NA 151
VIRGINIA POWER NA 1,209
W D ASSOCIATES INC NA 157
MISCELLANEOUS (13 PAYEES) NA 118
-------
TOTAL ENGINEERING SERVICES $11,741
=======
LEGAL SERVICES
- --------------
ADAMS NASH & HASKELL INC NA $ 157
DAY BERRY & HOWARD NA 408
HAGLER BAILLY CONSULTING NA 308
KILLIAN & GEPHART NA 116
MORGAN LEWIS & BOCKIUS LLP NA 3,726
PRENTICE H MARSHALL NA 110
RALPH G BIRD NA 353
THE NIELSON WURSTER GROUP NA 399
UPDIKE KELLY & SPELLACY NA 797
WINSTON & STRAWN NA 110
MISCELLANEOUS (1 PAYEE) NA 40
-------
TOTAL LEGAL SERVICES $ 6,524
=======
SECURITY SERVICES
- -----------------
BURNS INTL SECURITY SERVICES NA $ 7,088
MISCELLANEOUS (1 PAYEE) NA 10
-------
TOTAL SECURITY SERVICES $ 7,098
=======
TELECOMMUNICATION SERVICES
- --------------------------
SNET NA $ 545
MISCELLANEOUS (2 PAYEES) NA 31
-------
TOTAL TELECOMMUNICATION SERVICES $ 576
=======
TEMPORARY EMPLOYMENT SERVICES
- -----------------------------
MANPOWER, INC. NA $ 228
NEW ENGLAND MECH SVC INC NA 259
NUCON NA 959
-------
TOTAL TEMPORARY EMPLOYMENT SERVICES $ 1,446
=======
WATER TREATMENT SERVICES
- ------------------------
ECOLOCHEM NA $ 979
-------
TOTAL WATER TREATMENT SERVICES $ 979
=======
COMPUTERS SERVICES
- ------------------
INTERGRAPH CORP NA $ 192
SCIENTECH INC NA 767
SMS SYSTEMS MAINTENANCE SERV NA 227
MISCELLANEOUS (1 PAYEE) NA 18
-------
TOTAL COMPUTER SERVICES $ 1,204
=======
OTHER SERVICES
- --------------
DDI CUSTOMER SERVICE INC NA $ 134
EXECUTIVE CONSULTING INC NA 488
HORACE COFER ASSOCIATES INC NA 268
MEGAN CORP NA 316
NILSSON & ASSOCIATES NA 916
PRICEWATERHOUSECOOPERS LLP NA 404
THAMES RECORDS MANAGEMENT INC NA 177
THE PACIFIC INSTITUTE NA 278
VPA CORPORATION NA 137
MISCELLANEOUS (301 PAYEES) NA 3,856
-------
TOTAL OTHER SERVICES $ 6,974
=======
NORTHEAST UTILIITES SERVICE COMPANY
(Supplies centralized accounting,
administrative, data processing,
engineering, financial, legal,
operational, planning, purchasing
and other services) A $ 5,249
=======
GRAND TOTAL $41,791
=======
</TABLE>
<TABLE>
<CAPTION> ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
OUTSIDE SERVICES EMPLOYED FOR PAYEES GREATER THAN $100,000
PAYEE NAME DESCRIPTION OF SERVICES RENDERED
- ----------------------------------------------------------------------------------------------------
<S> <C>
ENGINEERING SERVICES
- --------------------
ABB CE COMBUSTION ENGINEERING RELATED SERVICES
BARTLETT NUCLEAR INC PROVIDE HEALTH PHYSICS AND DECONTAMINATION SERVICES
BLUE RIDGE TECHNOLOGIES INC CONSULTING SERVICES TO PROVIDE MILLSTONE ACCREDITATION ASSISTANCE
CATARACT INC ENGINEERING TECHNICAL SUPPORT SERVICES
CONTINGENCY MANAGEMENT ASSOC FURNISH FIRE PROTECTION SERVICES - MILLSTONE FACILITY
DUKE ENG & SERVICES INC ENGINEERING SUPPORT FOR THE MILLSTONE DESIGN ENGINEERING GROUP
ENTOR CORP ENGINEERING TECHNICAL SUPPORT SERVICES
JANUS MANAGEMENT ASSOCIATES FURNISH CONSULTING SERVICES IN CONNECTION WITH ARBITRATION ISSUES
LITTLE HARBOR CONSULTANTS INC INDEPENDENT THIRD PARTY OVERSIGHT OF EMPLOYEE SAFETY CONCERNS PROGRAM
AT MILLSTONE
ONSITE ENGINEERING SERVICES RELATED TO OPERATION AND MAINTENANCE
PARSONS POWER GROUP INC CONSULTING SERVICES TO PROVIDE AN INDEPENDENT CORRECTIVE ACTION
VERIFICATION PROGRAM (ICAVP)
PECO NUCLEAR MANAGEMENT AND ENGINEERING CONSULTING SERVICES AT MILLSTONE
ACTIVITIES
RCM TECHNOLOGIES INC ENGINEERING CONSULTING SERVICES AT MILLSTONE
SECORE L L C PROVIDE SCHEDULING SERVICES TO MILLSTONE
STONE & WEBSTER ENGINEERING ENGINEERING TECHNICAL SUPPORT SERVICES
TATHAM PROCESS ENGINEERING ENGINEERING SERVICES RELATED TO CONTINUOUS PROCESS IMPROVEMENT
TEKTON RESOURCES ENGINEERING TECHNICAL SUPPORT SERVICES
TELEDYNE ENGINEERING SERVICES ENGINEERING TECHNICAL SUPPORT SERVICES
VIRGINIA POWER MANAGEMENT AND ENGINEERING CONSULTING SERVICES AT MILLSTONE
W D ASSOCIATES INC OPERATIONS, PROCESS, REGULATORY LICENSING & ENGINEERING CONSULTING
SERVICES FOR MILLSTONE RESTART EFFORTS
LEGAL SERVICES
- --------------
ADAMS NASH & HASKELL INC FURNISH LEGAL SERVICES ON AN AS REQUESTED BASIS
DAY BERRY & HOWARD FURNISH LEGAL SERVICES ON AN AS REQUESTED BASIS
HAGLER BAILLY CONSULTING LEGAL AND CONSULTING SERVICES TO SUPPORT CALCULATION OF STRANDED COSTS
KILLIAN & GEPHART FURNISH LEGAL SERVICES ON AN AS REQUESTED BASIS
MORGAN LEWIS & BOCKIUS LLP FURNISH LEGAL SERVICES ON AN AS REQUESTED BASIS
PRENTICE H MARSHALL PROVIDE ARBITRATION SERVICES
RALPH G BIRD CONSULTING SERVICES TO SUPPORT LEGAL PROCEEDINGS FOR MILLSTONE OUTAGES
THE NIELSON WURSTER GROUP FURNISH LEGAL SERVICES ON AN AS REQUESTED BASIS
UPDIKE KELLY & SPELLACY FURNISH LEGAL SERVICES ON AN AS REQUESTED BASIS
WINSTON & STRAWN FURNISH LEGAL SERVICES ON AN AS REQUESTED BASIS
SECURITY SERVICES
- -----------------
BURNS INTL SECURITY SERVICES FURNISH SECURITY SERVICES AND EQUIPMENT FOR BASELINE SECURITY SUPPORT
TELECOMMUNICATION SERVICES
- --------------------------
SNET PROVIDE TELEPHONE SERVICES
TEMPORARY EMPLOYMENT SERVICES
- -----------------------------
MANPOWER, INC. FURNISH TEMPORARY LABOR SERVICES
NEW ENGLAND MECH SVC INC FURNISH TEMPORARY LABOR SERVICES
NUCON FURNISH TEMPORARY LABOR SERVICES
WATER TREATMENT SERVICES
- -------------------------
ECOLOCHEM PROVIDE WATER TREATMENT PURIFICATION SERVICES
COMPUTER SERVICES
- -----------------
INTERGRAPH CORP PROVIDE COMPUTER EQUIPMENT AND SUPPLIES
SCIENTECH INC CONSULTING SERVICES; DATA INTERFACE AND OTHER SOFTWARE WORK
SMS SYSTEMS MAINTENANCE SERV PROVIDE COMPUTER HARDWARE MAINTENANCE
OTHER SERVICES
- ---------------
DDI CUSTOMER SERVICE INC PROVIDE CONSULTING SERVICES FOR LEADERSHIP ASSESSMENTS
EXECUTIVE CONSULTING INC PROVIDE CONSULTING SERVICES FOR TRAINING
HORACE COFER ASSOCIATES INC PROVIDE CONSULTING SERVICES FOR TRAINING
MEGAN CORP PROVIDE CONSULTING SERVICES FOR MILLSTONE
NILSSON & ASSOCIATES PROVIDE CONSULTING SERVICES FOR MILLSTONE
PRICE WATERHOUSE COOPERS LLP PROVIDE CONSULTING SERVICES FOR NORTHEAST UTILITIES' STRATEGIC
ENVIRONMENTAL PLAN
THAMES RECORDS MANAGEMENT INC PROVIDE RECORD MANAGEMENT SERVICES
THE PACIFIC INSTITUTE PROVIDE CONSULTING SERVICES FOR MILLSTONE
VPA CORPORATION PROVIDE CONSULTING SERVICES FOR MILLSTONE
</TABLE>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
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 $ 9,244
Supplemental Retirement and Savings Plan 4,222
Post Retirement Medical Benefit - FAS 106 2,902
Early Retirement Program 16,080
Group Life, Long-term Disability, Hospital
and Medical Insurance Expenses 11,803
Other Employee Benefits Expenses 97
-------
TOTAL $44,348
=======
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
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, 1999
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 $896
Company (an associate company)
Research and development 50
Other miscellaneous expenses -
----
TOTAL $946
====
\
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
RENTS
INSTRUCTIONS: Provide a listing of the amount included in "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 $ 91
Computer/office equipment 535
Vehicles 1,587
Simulator 5,035
Services billed from Northeast Utilities Service
Company (an associate company) 3,551
-------
TOTAL $10,799
=======
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
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 $ 374
Connecticut Insurance Premium Excise Tax 15
Massachusetts Unemployment 1
New Hampshire Business Enterprise Tax 1
Local property 1,254
Connecticut Sales Tax 45
Connecticut Corporate Business Tax 127
Connecticut Transportation Tax of Hazardous Waste 2
-------
Sub-Total 1,819
-------
(2) U.S. Government Taxes:
Federal Insurance Contribution Act 8,681
Medicare Tax 2,359
Federal Excise (245)
Federal Unemployment 125
-------
Sub-Total 10,920
-------
TOTAL $12,739
=======
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
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)
Services billed from Northeast Utilities $20
Service Company (an associate company)
OpSail New London 2000 10
Salvation Army 6
Southeastern Connecticut
Enterprise Region 4
Submarine Force Library and
Museum Association, Inc. 12
Summer Music at Harkness 2000 25
Miscellaneous (9 payees) 17
---
TOTAL $94
===
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
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
- ---------------------------------------------------------------------------
Executive incentive
compensation plan Various Officers $1,192
Services billed from Northeast
Utilities Service Company
(an associate company) 829
Civil Penalties United States Nuclear
Regulatory Commission 88
Communication services Miscellaneous (29 payees) 37
------
TOTAL $2,146
======
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For the Year Ended December 31, 1999
SCHEDULE XVIII
NOTES TO STATEMENTS OF INCOME
INSTRUCTIONS: The space below is provided for important notes regarding the
financial statements 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 19E.
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
ORGANIZATION CHART (AS OF DECEMBER 31, 1999)
President and Chief Executive Officer - Nuclear
- Senior Vice President and Chief Nuclear Officer - Millstone Station
- Millstone Unit #1
- Millstone Unit #2
- Millstone Unit #3
NORTHEAST NUCLEAR ENERGY COMPANY
--------------------------------
METHODS OF ALLOCATION
---------------------
For the year ended December 31, 1999
------------------------------------
During 1999, Millstone Unit 1 was being decommissioned. However, the costs
associated with the three Millstone units were 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 either Millstone Unit 1 or Millstone Unit 3 was not part of the allocation,
then the costs to the remaining two units would be billed directly or allocated
using one of the following three methods:
1. One-half to each unit;
2. Number of employees;
3. Net capacity of each unit.
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 1999:
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 1999:
(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:
-----------------------------------
(Signature of Signing Officer)
John J. Roman - Vice President and Controller
---------------------------------------------
(Printed Name and Title of Signing Officer)
Date: April 20, 2000
--------------------
<TABLE> <S> <C>
<ARTICLE>OPUR2
<CIK>0000310418
<NAME>NORTHEAST NUCLEAR ENERGY COMPANY
<MULTIPLIER>1,000
<PERIOD-TYPE> YEAR YEAR
<FISCAL-YEAR-END> DEC-31-1999 DEC-31-1998
<PERIOD-END> DEC-31-1999 DEC-31-1998
<BOOK-VALUE> PER-BOOK PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 22,928 30,824
<TOTAL-INVESTMENTS> 0 0
<TOTAL-CURRENT-ASSETS> 154,987 147,310
<TOTAL-DEFERRED-DEBITS> 61,340 35,106
<OTHER-ASSETS-AND-DEBITS> 0 0
<TOTAL-ASSETS-AND-DEBITS> 239,255 213,240
<TOTAL-PROPRIETARY-CAPITAL> 15,919 16,167
<TOTAL-LONG-TERM-DEBT> 6,011 12,022
<NOTES-PAYABLE> 0 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 0 0
<OTHER-CURR-AND-ACCRUED-LIAB> 190,990 166,610
<TOTAL-DEFERRED-CREDITS> 26,335 18,441
<DEFERRED-INCOME-TAX> 0 0
<TOT-LIABIL-AND-PROPRIET-CAP> 239,255 213,240
<SERVICES-ASSOCIATE-COMPANIES> 403,527 470,221
<SERVICES-NON-ASSOCIATE-COMP> 67,461 61,445
<MISC-INCOME-OR-LOSS> 1,567 2,848
<TOTAL-INCOME> 472,555 534,514
<SALARIES-AND-WAGES> 140,816 121,771
<EMPLOYEE-PENSION-AND-BENEFIT> 44,348 20,758
<OTHER-EXPENSES> 285,639 389,926
<TOTAL-EXPENSES> 470,803 532,455
<NET-INCOME> 1,752 2,059
<TOTAL-EXPENSES-DIRECT-COST> 467,750 529,309
<TOTAL-EXPENSES-INDIRECT-COST> 0 0
<TOT-EXP-DIRECT-AND-INDIRECT> 467,750 529,309
<PERSONNEL-END-OF-YEAR> 1,851 1,618
</TABLE>
