File No. 70-8769
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
POST EFFECTIVE AMENDMENT NO. 5
TO
FORM U-1
APPLICATION-DECLARATION WITH RESPECT TO
THE ACQUISITION OF A SUBSIDIARY IN CONNECTION WITH
THE PROVISION OF POWER MARKETING AND OTHER SERVICES
UNDER
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
EASTERN UTILITIES ASSOCIATES
P.O. Box 2333, Boston, Massachusetts 02107
(Name of company 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, MA 02109
Item 1 is hereby amended and restated as follows:
ITEM 1. DESCRIPTION OF THE PROPOSED TRANSACTION.
Introduction.
(a) Pursuant to an order issued by the Securities and Exchange
Commission (the "Commission") in this proceeding on March 14, 1996 (Release
No. 35-26493), the applicant, Eastern Utilities Associates ("EUA"), a
Massachusetts business trust and a registered holding company under the
Public Utility Holding Company Act of 1935 (the "Act") was authorized to
acquire a new subsidiary, EUA Energy Services, Inc. ("Energy Services")
which has a 30% ownership interest in Duke/Louis Dreyfus Energy Services
(New England) LLC ("D/LD"), a limited liability company formed to provide
energy services to customers in Connecticut, Maine, Massachusetts, New
Hampshire, Rhode Island and Vermont (the "Territory"). The remaining
interest in D/LD is owned by Duke/Louis Dreyfus LLC, a Nevada limited
liability company.
(b) D/LD's business includes buying, selling and brokering electric
power and fuel. D/LD's initial plans were to conduct its power marketing
activities in wholesale energy markets within the Territory. D/LD intends
to sell energy to wholesale and retail customers to the extent permitted
without becoming an "electric utility company" or "gas utility company"
within the meaning of the definition of such terms in Sections 2(a)(3) and
(4) of the Act. In its initial application, EUA requested that the
Commission reserve jurisdiction over possible future retail sales of
electricity and fuel, including gas, by D/LD. In an order dated May 23,
1996 (Release No. 35-26519) D/LD was authorized to participate in the pilot
programs in Massachusetts and New Hampshire retail electric markets. EUA
stated in its original application that various initiatives with respect to
competition in retail fuel markets, including gas, were also moving rapidly
and that D/LD may be in a position to pursue opportunities in the retail
fuel markets within the Territory. D/LD now has the opportunity to
participate in the retail gas markets in the Territory by virtue of the
fact that various gas utility companies are instituting, or have
instituted, programs designed to provide certain of their customers with a
choice in gas suppliers.
Programs.
(c) Gas companies in Massachusetts, Maine, New Hampshire and Rhode
Island have filed proposals, and are currently instituting programs, to
unbundle gas services. The immediate method of unbundling such services is
taking the form of contracting with commercial and industrial customers to
provide transportation services, leaving such customers free to contract
with other suppliers of gas (Boston Gas Company, Mass. D.P.U. Docket #96-
50; Essex County Gas Company, Mass. D.P.U. Docket #96-70; Fall River Gas
Company, Mass. D.P.U. Docket #96-60; Northern Utilities, Inc., Maine P.U.
Docket #95-481; EnergyNorth Natural Gas, Inc., New Hampshire P.U. Docket
#DE 95-121;) (Footnote 1). Most of those gas companies are offering firm
transportation services, although The Providence Gas Company (Rhode Island
P.U.C. Docket #23-44) is offering interruptible transportation services to
its customers with telemetering equipment. Although there is some movement
towards phasing in the unbundling of gas services to residential customers
in the future (Boston Gas Company; Essex County Gas Company), only Bay
State Gas Company of Massachusetts is promising to file this year a
proposal for a residential unbundling pilot program.
(d) EUA hereby requests that the Commission authorize D/LD to buy,
sell and broker gas to the customers participating in the proposed and
instituted gas transportation programs described above and any similar
programs that are subsequently authorized in New England. EUA believes
that the same reasons that the Commission used in its decision regarding
electric retail activity by D/LD apply to gas retail activity. The
proposed activity by D/LD is necessary or appropriate in the public
interest or for the protection of investors or consumers and not
detrimental to the proper functioning of the integrated system of EUA
because (a) such activity will be in New England and (b) such activity may
promote greater competition and thus further the public interest.
(e) Furthermore, in light of the recent unbundling legislation passed
in Rhode Island and for the same reasons stated above, EUA also requests
that the Commission authorize D/LD to buy, sell and broker electricity to
customers participating in any existing and future programs authorized in
New England.
(f) Finally, EUA also requests that the Commission authorize D/LD to
buy, sell and broker fuel to parties other than electric power
producers.
(g) As required by rule 54, all applicable conditions contained in
rule 53(a) are, and assuming the consummation of the proposed transactions,
will be, satisfied and none of the conditions contained in rule 53(b) exist
or will exist as a result of the proposed transactions, making rule 53(c)
inapplicable.
Footnote 1:
Connecticut long-distance carriers will be offering similar proposals.
SIGNATURE
Pursuant to the requirements of the Public Utility Holding Company Act
of 1935, the undersigned Applicants have duly caused this statement to be
signed on their behalf by the undersigned duly authorized individuals.
EASTERN UTILITIES ASSOCIATES
By: /s/ Clifford J. Hebert, Jr.
Clifford J. Hebert, Jr.
Treasurer
Dated October 1, 1996
