File No. 70-8283
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
POST-EFFECTIVE AMENDMENT NO. 2 TO
FORM U-1
APPLICATION-DECLARATION WITH RESPECT TO
PARTICIPATION BY EUA ENERGY INVESTMENT CORPORATION
IN A JOINT VENTURE TO COMMERCIALIZE
AN ENERGY RELATED COMPUTER SOFTWARE AND HARDWARE SYSTEM
UNDER
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
EUA ENERGY INVESTMENT CORPORATION ("EEIC")
P.O. Box 2333, Boston, Massachusetts 02107
(Name of companies filing this statement
and address of principal executive office)
EASTERN UTILITIES ASSOCIATES
(Name of top registered holding company
parent of applicant or declarant)
CLIFFORD J. HEBERT, JR., TREASURER
EASTERN UTILITIES ASSOCIATES
P.O. Box 2333, Boston, Massachusetts 02107
(Name and address of agent for service)
The Commission is requested to mail signed copies
of all orders, notices and communications to:
ARTHUR I. ANDERSON, P.C.
McDermott, Will & Emery
75 State Street
Boston, Massachusetts 02109
This Post-Effective Amendment No. 2 to the Application-
Declaration on Form U-1 dated October 6, 1993, as previously
amended by Amendment No. 1 dated October 20, 1993, Amendment
No. 2 dated November 5, 1993, Amendment No. 3 dated December 8,
1993, Amendment No. 4 dated January 19, 1994, Amendment No. 5
dated January 21, 1994 and Post-Effective Amendment No. 1 dated
December 21, 1994, hereby amends said Application-Declaration as
follows.
1. Paragraph H of Part III of Item 1 is hereby amended and
restated in its entirety to read as follows:
H. Request for Authority for Additional Financing of the
Joint Venture and Grounds for Request. By order dated
January 24, 1994 (Release No. 35-25976; hereinafter, the
"Order"), EEIC was authorized, among other things, to provide
$1.85 million of initial funding, up to $1 million of additional
capital contributions and up to $2 million of open account
advances and/or loans to TransCapacity L.P. for the research,
development and commercialization of an energy-related computer
software and hardware system for the collection, compilation and
distribution of an information database composed of information
regarding natural gas pipeline capacity and capacity rights. As
of December 31, 1994, EEIC had provided TransCapacity L.P. with
$2,275,000 in funding for its working capital, leaving EEIC with
unexercised authorization to contribute an additional $725,000 to
TransCapacity L.P. For the reasons set forth below, EEIC hereby
requests Commission authorization to make further capital
contributions to TransCapacity L.P. (in addition to the
authorized $725,000) through December 31, 1996 in an aggregate
amount of up to $2 million. EEIC anticipates that it will not
require additional working capital for the purpose of enabling
TransCapacity, L.P. to bring the System on-line.
The partners of TransCapacity L.P. project that
TransCapacity L.P. will require up to $2 million of additional
funding from EEIC for working capital purposes due to unavoidable
delays in achieving TransCapacity L.P.'s target date for full
operation of its EBB system. Exhibit G-3, for which confidential
treatment has been requested, shows the details of
TransCapacity's working capital requirements. At the time the
Order was issued, TransCapacity L.P. and the Applicant expected
to commence on-line operation of the EBB system by June 1, 1994;
however, the EBB system did not commence full operation until
October 1994 for the following reasons:
(i) The work involved in creating a capacity rights
database, and building the software and hardware
required to update the database to interact with gas
pipeline EBB's, was more difficult and time consuming
than originally anticipated; and
(ii) The deadline of June 1, 1994 for implementation of
Federal Energy Regulatory Commission (the "FERC") Order
636 regarding the EBB information standards to be
achieved by the pipelines was not feasible because only
a few pipelines were in compliance on that date.
Accordingly, the FERC granted the pipelines an
extension to comply with its Order 636, and the EBB
information did not become publicly available until
after TransCapacity L.P.'s target date. As at year end
1994, only 12 pipelines out of 51 were verified by
TransCapacity L.P. to be in compliance with the FERC's
EBB standards. These 12 pipelines represent
approximately 40 percent of the total on-line capacity
in the natural gas industry (see attached Exhibit G-2).
Because commencement of the on-line operation of the EBB system
was delayed, TransCapacity L.P. postponed its scheduled date for
achieving sufficient customer service levels to meet its
operating cash requirements. Although these delays force
TransCapacity L.P. to seek additional funding from the Applicant,
the partners of TransCapacity L.P. and the Applicant believe that
the long-term profitability of the EBB system will not be
adversely affected. The partners of TransCapacity L.P.
anticipate that TransCapacity L.P. will be in a position to
distribute excess cash to the Applicant commencing with the first
quarter of fiscal year 1996.
3. The following Exhibits and Financial Statements are to be
added to Item 6: (* Denotes Filed Herewith)
*Exhibit G-2 Gas Pipelines in Compliance
with FERC EBB Standards.
*Exhibit G-3 TransCapacity L.P.
1995 Financial Forecast
(confidential treatment
requested.)
SIGNATURE
Pursuant to the requirements of the Public Utility Holding
Company Act of 1935, the undersigned Applicant has duly caused
this statement to be signed on its behalf by the undersigned duly
authorized individual.
EUA ENERGY INVESTMENT CORPORATION
By: /s/ Clifford J. Hebert, Jr.
Clifford J. Hebert, Jr.
Treasurer
Date: January 27, 1995
Exhibit G-2
GAS PIPELINES IN COMPLIANCE WITH FERC EBB STANDARDS
In Production
1 Algonquin Gas Transmission
2 ANR Pipeline
3 Colorado Interstate Gas
4 Natural Gas Pipeline
5 Panhandle Eastern Pipeline
6 Southern Natural
7 Tennessee Gas Pipeline
8 Texas Gas Transmission
9 Texas Eastern Transmission
10 Transcontinental
11 Transwestern
12 Trunkline Gas Company
Testing
1 CNG Transmission
2 East Tennessee
3 Kern River
4 Midwestern
5 Northern Natural
EXHIBIT G-3
TRANCAPACITY L.P. 1995 FINANCIAL FORECAST
**CONFIDENTIAL TREATMENT REQUESTED**
