SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
In the matter of )
)
EASTERN UTILITIES ASSOCIATES )
Boston, Massachusetts )
)
EUA COGENEX CORPORATION ) Certificate of
Lowell, Massachusetts ) Notification
) Pursuant to
) Rule 24
(70-7287) )
)
(Public Utility Holding Company Act of 1935) )
Enclosed herewith for filing by Eastern Utilities Associates and
its wholly-owned subsidiary, EUA Cogenex Corporation, in accordance
with the Order of the Securities and Exchange Commission entered in
the above matter on February 15, 1995 (Release No. 35-26232) and
pursuant to Rule 24 under the Public Utility Holding Company Act of 1935,
are the consolidated and consolidating balance sheet, income statement,
and statement of cash flows of EUA Cogenex for the quarter ended September 30,
1995 and such other information required to be filed by said order.
EASTERN UTILITIES ASSOCIATES
By: /s/ Clifford J. Hebert, Jr.
Clifford J. Hebert, Jr.
Treasurer
EUA COGENEX CORPORATION
By: /s/ Basil G. Pallone
Basil G. Pallone
Vice President
February 15, 1996
<TABLE>
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEETS
SEPTEMBER 30, 1995
ASSETS
<CAPTION>
EUA EUA EUA EUA EUA EUA EUA EUA
Cogenex Cogenex Nova Day NEM Cogenex Citizens Highland
Consol. Elim. Corp. (Division) (Division) Inc Canada Corp. Corp.
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Utility Plant & Oth. Inv.
Util plant in service $ $ $ $ $ $ $ $ $
Less acc prov for deprec
and amortization
Net util. plant in svc
Constr. wip (Notes H&J)
Net utility plant
Non-utility property 69,755,937 54,953,250 1,339,696 1,853,672 8,697,105 855,256 2,056,958
Less acc prov for deprec 22,603,143 18,469,320 787,020 713,525 2,313,233 14,016 306,029
Net non-utility property 47,152,794 36,483,930 552,676 1,140,147 6,383,872 841,240 1,750,929
Inv. in subs. (at equity) 46,877,892 16,371,829 63,249,721
Excess of carrying val.
of invest in subs.
Notes receivable 30,126,601 30,126,601
Leases receivable 6,970,724 6,331,333 639,391
Other 18,650,225 15,625,671 (186,000) 333,340 69,315 2,807,899
Tot Util Plant & Oth Inv 149,778,236 16,371,829 151,817,256 366,676 1,140,147 6,717,212 910,555 5,198,219
Current Assets:
Cash & temp cash inv 500,074 193,989 71,346 (63,448) 4,598 38,176 (1,774) 257,187
Notes receivable 19,235,729 6,912,617 21,460,802 97,688 51,890 4,482,143 55,823
Leases receivable 1,429,986 1,429,986
Accounts rec. - Net:
Customers 11,993,429 4,764,530 3,900,192 1,918,414 524,040 570,176 316,077
Accrued unbilled rev.
Others 6,091,841 5,440,703 81,890 636,569 (18,033) 9,837 (59,125)
Acc. rec. - ass. co. (1,318) 2,837,736 1,863,651 827,549 144,567 100 127 424
Mats. & suppl. (at av. cost):
Fuel
Plant mats & op supp 3,133,006 51,841 2,367,618 596,909 116,638
Other current assets 2,032,316 1,893,430 50,605 45,320 26,088 229 16,644
Total Current Assets 44,415,063 9,750,353 37,098,932 7,396,888 3,330,221 510,605 4,546,507 578,595 703,668
Deferred Debits:
Unamortized debt expense
Unrec. reg. plant costs
Other deferred debits 3,388,232 1,944,700 (12,476) 2,317 1,381,613 49,196 22,882
Total Def. Debits 3,388,232 1,944,700 (12,476) 2,317 1,381,613 49,196 22,882
Total Assets $197,581,531 $26,122,182 $190,860,888 $7,751,088 $4,472,685 $8,609,430 $4,546,507 $1,538,346 $5,924,769
</TABLE>
() Denotes Contra
Notes: See Note A
<TABLE>
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEETS
SEPTEMBER 30, 1995
LIABILITIES
<CAPTION>
EUA EUA EUA EUA EUA EUA EUA EUA
Cogenex Cogenex Nova Day NEM Cogenex Citizens Highland
Consol. Elimin. Corp. (Division) (Division) Inc Canada Corp. Corp.
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Capitalization:
Common equity $52,348,133 $16,371,829 $49,079,732 $2,345,549 $1,011,553 $11,762,448 $75,247 ($15,603) $4,461,036
Non-redeemable preferred
stock of subsidiaries
Red. pref. stock of
subsidiaries - net 75 75
Pref. stock red. cost
Partnerships' capital
Long-term debt - net 114,137,230 114,100,000 37,230
Total Capitalization 166,485,438 16,371,829 163,179,732 2,345,549 1,011,553 11,762,448 75,247 (15,528) 4,498,266
Current Liabilities:
Pref. stock sink. fund req.
LTD due within one year 5,900,000 5,900,000
Notes payable 12,307,125 6,912,617 7,242,000 3,164,846 2,087,073 4,471,260 973,322 1,281,241
Accounts payable 7,524,309 4,340,091 433,512 901,798 463,796 1,385,112
Accounts payable-ass. co. 382,045 1,564,389 1,340,442 443,192 117,952 65,721 32,334 (53,207)
Customer deposits (8,391) (8,391)
Taxes accrued 70,397 2,788 58,736 1,005 436 7,432
Interest accrued 1,772,913 1,273,347 1,772,913 1,129,482 143,865
Dividends declared
Other current liabilitie 7,475,404 7,325,327 25,543 723 83,986 39,825
Total Curr Liabilities 35,423,802 9,750,353 27,923,561 5,246,920 3,252,416 65,721 4,471,260 1,553,874 2,660,403
Deferred Credits:
Unamort. investment credit
Other deferred credits 2,409,201 1,372,069 158,619 208,716 669,797
Total Deferred Credits 2,409,201 1,372,069 158,619 208,716 669,797
Accumulated deferred taxes (6,736,910) (1,614,474) (3,888,536) (1,233,900)
Commit. & conting. (Note J)
Tot. Liab. & Cap. $197,581,531 $26,122,182 $190,860,888 $7,751,088 $4,472,685 $8,609,430 $4,546,507 $1,538,346 $5,924,769
</TABLE>
()Denotes Contra
Notes: See Note A
<TABLE>
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING INCOME STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
<CAPTION>
EUA EUA EUA EUA EUA EUA EUA EUA
Cogenex Cogenex Nova Day NEM Cogenex Citizens Highland
Consolidated Elimin. Corporation (Division) (Division) Inc Canada Corp. Corp.
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Operating Revenues $49,487,167 $28,281,453 $11,337,091 $5,017,081 $2,534,498 $ $1,033,028 $1,284,016
Operating Expenses:
Operation $38,806,849 20,812,259 11,078,571 4,843,469 17,970 1,006 1,007,973 1,045,601
Maintenance 583,053 567,206 12,192 1,868 989 798
Deprec. & amort. 5,545,931 4,730,896 142,189 50,476 522,412 17,026 82,932
Taxes - Other than income 589,287 206,934 208,258 148,969 311 19,675 5,140
- Income (credit) 451,501 (66,418) 467,086 (8,838) 59,671
- Deferred 209,557 82,212 127,345
Total Operating Exp. 46,186,178 26,333,089 11,441,210 5,042,914 1,136,992 1,006 1,036,825 1,194,142
Operating Income 3,300,989 1,948,364 (104,119) (25,833) 1,397,506 (1,006) (3,797) 89,874
Other Income and Deductions:
Interest and dividend inc. 7,508,285 21,353 7,339,992 8,172 723 164,322 16,429
Equ. in earnings of jointly-
owned companies (7,680,177) 1,553,121 (6,127,056)
Allowance for other funds
used during construction
Oth. (deductions) inc.-net (2,120,513) (2,195,983) 78,667 (3,079) (118)
Total Other Income (2,292,405) 1,574,474 (983,047) 86,839 723 164,322 (3,079) 16,311
Income (Loss) Before Int. 1,008,584 1,574,474 965,317 (17,280) (25,833) 1,398,229 163,316 (6,876) 106,185
Interest Charges:
Interest on long-term debt 7,649,253 7,649,253
Amort. of debt exp. & prem. 113,752 113,752
Other interest exp. (princ.
short-term notes) 2,154,202 21,353 1,570,941 420,562 66,637 88,905 10,115 18,395
All. for borrowed funds used
during constr.-(credit) (767,017) (757,335) (1,288) (8,394)
Total Interest Charges 9,150,190 21,353 8,576,611 420,562 66,637 88,905 8,827 10,001
Net Inc. (Loss) before
preferred return (8,141,606) 1,553,121 (7,611,294) (437,842) (92,470) 1,398,229 74,411 (15,703) 96,184
Preferred Return Requirement
Net Income (Loss) $8,141,606) $1,553,121 ($7,611,294) ($437,842) ($92,470) $1,398,229 $74,411 ($15,703) $96,184
()Denotes Contra
Notes: See Note A
</TABLE>
<TABLE>
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
<CAPTION>
EUA EUA EUA EUA EUA EUA EUA EUA
Cogenex Cogenex Nova Day NEM Cogenex Citizens Highland
Consolidated Elimin. Corp. (Division) (Division) Inc Canada Corp. Corp.
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES:
Net Income (Loss) ($8,141,606) $1,553,121 ($7,611,295) ($437,842) ($92,469) $1,398,229 $74,411 ($15,703) $96,184
Adj to Rec Net Inc (Loss)
to Net Cash Prov by Op Act:
Depreciation and amort. 5,784,934 4,906,665 142,188 50,476 585,646 17,027 82,932
Deferred taxes (6,836,338) (6,963,683) 127,345
Gains on sales of inv in
proj. paid for with
notes leases rec. (4,973,760) 18,053 (4,955,707)
Non-cash csts of
energy savings proj 1,651,622 1,651,622
Pension liability 254,403 191,496 62,907
Amort. of def revs (181,737) (181,737)
Loss on disp of cog. proj 171,270
Coll. & sales of project
notes and leases rec. 15,822,687 15,822,687
Equity earnings 7,680,177 (1,553,121) 6,127,056
Other - net 819,475 793,138 31,539 5,670 (63,519) 70,985 (18,338)
Net Changes to Working Cap.:
Accounts receivable 3,790,031 (1,856,244) 2,751,993 914,760 (1,081,908) 186,459 (580,141) (257,376)
Materials and supplies 570,094 (67,565) 228,448 675,344 (284,625) (116,638)
Accounts payable 1,455,304 1,399,582 1,351,148 (920,568) 533,191 63,080 496,130 1,331,905
Accrued taxes (55,751) (42,468) (22,156) 1,005 436 7,432
Accrued interest (879,721) 484,480 (880,661) 421,584 63,836
Other - net (1,451,114) (680) (1,399,626) (92,719) (40,299) (26,088) 83,757 23,181
Net Cash Prov. from
(Used in) Op. Act. 15,479,970 (22,374) 12,142,083 775,037 (845,123) 2,115,503 48,323 72,491 1,149,282
CASH FLOW FROM INV. ACT.:
Exp for inv in
en svg projects (29,398,534) 2,566,716 (18,411,645) (154,688) (91,180) (3,182) (4,950,000) (1,047,687) (2,173,436)
Coll. on notes &
leases receivables 1,487,434 1,005,160 2,312 12,105 467,857
Proc from sale of
Cogen operations 11,500,650 11,500,650
Investments in subs. 10,961,315 (1,965,688) 8,995,627
Net Cash Provided from
(Used in) Inv. Act. (5,449,135) 601,028 3,089,792 (152,376) (79,075) (3,182) (4,482,143) (1,047,687) (2,173,436)
CASH FLOW FROM FIN. ACT.:
Issuances:
Common shares/capital contr. 936 736 100 100
Long-term debt
Redemptions:
Long-term debt
Prem. on reacqu. and fin exp.
Dividends declared (2,400,000) (2,400,000)
Net inc. (dec) in std (19,203,739) 1,820,408 (24,238,000) (571,154) 700,000 4,471,260 973,322 1,281,241
Cap. cont. from EUA 8,059,000 8,059,000
Net Cash Provided from
(Used in) Fin. Act. (11,144,739) (578,656) (16,179,000) (571,154) 700,000 (2,400,000) 4,471,996 973,422 1,281,341
NET (DEC) INC IN CASH (1,113,906) (947,125) 51,507 (224,198) (287,679) 38,176 (1,774) 257,187
Cash & temp. cash inv.
at beginning of year 1,613,981 1,141,115 19,839 160,750 292,277
Cash & temp. cash inv.
at end of year $500,075 $193,990 $71,346 ($63,448) $4,598 $38,176 ($1,774) $257,187
Cash paid during the year for:
Interest $9,980,884 $9,936,845 $39,717 $4,322
Income Taxes $657,296 $657,296
Conv. of inv. in energy svngs proj. to
notes and leases rec. $12,514,072 $12,514,072
</TABLE>
( ) Denotes contra
Notes: See Note A
Note A:
In September 1995, EUA announced that EUA Cogenex was discontinuing its
cogeneration operations effective as of July 1, 1995 because they had not
performed up to expectations. The total net investment of EUA Cogenex's
cogeneration portfolio was $29.2 million at July 1, 1995. Cogenex has sold a
majority of its operating cogeneration portfolio to Ridgewood Electric Power
Trust III. The decision to discontinue these underperforming cogeneration
operations and the subsequent sale of a majority of the operating cogeneration
portfolio resulted in a one-time after-tax charge of approximately $10.5
million, in the quarter ended September 30, 1995.
EUA Cogenex, through its EUA WestCoast L.P. (West Coast), had under
development a cogeneration facility of approximately 1.5 MW. As of July 1, 1995,
WestCoast's investment in the project was approximately $5.8 million. The
cogeneration facility experienced numerous start-up delays and cost overruns.
The host of the facility has taken the position that the energy services
agreement between WestCoast and itself is terminated due to, among other things,
failure to complete the project. WestCoast disagrees with the host's right to
terminate, but has decided not to contest the host's purported termination.
EUA Cogenex intends to vigorously prosecute its claims against the contractors
and surety and defend itself against any cross-complaints. EUA Cogenex cannot
predict the ultimate resolution of this matter. As a result of EUA Cogenex's
decision to discontinue cogeneration operations effective as of July 1, 1995,
EUA Cogenex has recorded a reserve for its total investment in this project
which is included in the one-time after-tax charge to earnings of approximately
$10.5 million.
Business Line Project Equipment
in Service Revenues
as of 9/30/95 as of 9/30/95
Demand Side Mgmt./Energy Mgmt. Ser $45,092,866 $32,141,289
Manufacturing and Fabrication $16,354,172
Consulting $991,706
TOTAL $45,092,866 $49,487,167
Geographic Location Project Equipment
in Service Revenues
as of 9/30/95 as of 9/30/95
New England / New York Region $24,352,104 $36,283,619
U.S. excluding New England $20,740,762 $13,203,548
and New York
Canada $0 $0
All areas of the world excluding
U.S. and Canada
TOTAL $45,092,866 $49,487,167
<TABLE> <S> <C>
<ARTICLE> OPUR1
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 0
<OTHER-PROPERTY-AND-INVEST> 149779
<TOTAL-CURRENT-ASSETS> 44415
<TOTAL-DEFERRED-CHARGES> 3388
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 197582
<COMMON> 0
<CAPITAL-SURPLUS-PAID-IN> 43541
<RETAINED-EARNINGS> 8807
<TOTAL-COMMON-STOCKHOLDERS-EQ> 52348
0
0
<LONG-TERM-DEBT-NET> 114137
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 12307
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 5900
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 12890
<TOT-CAPITALIZATION-AND-LIAB> 197582
<GROSS-OPERATING-REVENUE> 49487
<INCOME-TAX-EXPENSE> 699
<OTHER-OPERATING-EXPENSES> 45487
<TOTAL-OPERATING-EXPENSES> 46186
<OPERATING-INCOME-LOSS> 3301
<OTHER-INCOME-NET> (2293)
<INCOME-BEFORE-INTEREST-EXPEN> 1008
<TOTAL-INTEREST-EXPENSE> 9150
<NET-INCOME> (8142)
0
<EARNINGS-AVAILABLE-FOR-COMM> (8142)
<COMMON-STOCK-DIVIDENDS> 0
<TOTAL-INTEREST-ON-BONDS> 7649
<CASH-FLOW-OPERATIONS> 15480
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
