Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1993 and Ending December 31, 1993
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
EUA Service Corporation
(Exact Name of Reporting Company)
A Subsidiary SERVICE COMPANY
("Mutual" or "Subsidiary")
Date of Incorporation January 1, 1971.
If not Incorporated, Date of Organization _______________.
State or Sovereign Power under which Incorporated or Organized Massachusetts
Location of Principal Executive Offices of Reporting Company:
1 Liberty Square, Boston, Massachusetts 02107
Name, title, and address of officer to whom correspondence concerning this
report should be addressed:
Richard M. Burns Vice President & Comptroller 1 Liberty Sq. Boston MA 02107
(Name) (Title) (Address)
Name of Principal Holding Company Whose Subsidiaries are served by Reporting
Company:
Eastern Utilities Associates
Total Number of Pages 41
SEC 19216 (6-82)
INSTRUCTIONS FOR USE OF 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 210.3-01(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, 210.3(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 of capital billed during the calendar year.
*NEW PAGE*
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Schedule orPage
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 PROPERTY 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 LIABILITIES 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 - NON-ASSOCIATE COMPANIES Account 458 22
ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE AND
NON-ASSOCIATE COMPANIES Schedule XVI 23
SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE
FUNCTION Schedule XVII24-27
DEPARTMENTAL ANALYSIS OF SALARIES Account 920 28
OUTSIDE SERVICES EMPLOYED Account 92329-29A
EMPLOYEE PENSIONS AND BENEFITS Account 926 30
GENERAL ADVERTISING EXPENSES Account 930.1 31
MISCELLANEOUS GENERAL EXPENSES Account 930.2 32
RENTS Account 931 33
TAXES OTHER THAN INCOME Account 408 34
DONATIONS Account 426.1 35
OTHER DEDUCTIONS Account 426.5 36
NOTES TO STATEMENT OF INCOME Schedule XVIII 37
*NEW PAGE*
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Page
Description of Reports or Statements No.
ORGANIZATION CHART 38
METHODS OF ALLOCATION 39
ANNUAL STATEMENT OF COMPENSATION FOR
USE OF CAPITAL BILLED 40
SIGNATURE CLAUSE 41
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the current and prior year.
<CAPTION>
ACCOUNT ASSETS AND OTHER DEBITS AS OF DECEMBER 31, 1993
CURRENT PRIOR
<S> <C> <C>
! ! !
SERVICE COMPANY PROPERTY ! ! !
! ! !
101 Service company property (Schedule II) ! 30,657,575 ! 30,300,974 !
101.1 Property under capital leases - Net ! 1,498,410 ! 2,467,564 !
Schedule XIV (B) ! ! !
107 Construction work in progress (Schedule II) ! 171,026 ! 159,202 !
Total Property ! 32,327,011 ! 32,927,740 !
! ! !
111 & Less accumulated provision for depreciation ! ! !
108 and amortization of service company ! ! !
property (Schedule III) ! 10,077,760 ! 8,745,521 !
Net Service Company Property ! 22,249,251 ! 24,182,219 !
! ! !
INVESTMENTS ! ! !
! ! !
123 Investments in associate companies ! ! !
(Schedule IV) ! ! !
124 Other Investments (Schedule IV) ! ! !
Total Investments ! - 0 - ! - 0 - !
! ! !
CURRENT AND ACCRUED ASSETS ! ! !
! ! !
131 Cash ! 130,698 ! 109,283 !
134 Special deposits ! 925 ! 925 !
135 Working funds ! 13,597 ! 10,815 !
136 Temporary cash investments (Schedule IV) ! ! 1,005,000 !
141 Notes receivable ! ! !
143 Accounts receivable ! 575,368 ! 249,128 !
144 Accumulated provision of uncollectible ! ! !
accounts ! ! !
146 Accounts receivable from associate ! ! !
companies (Schedule V) ! 6,249,060 ! 3,079,070 !
152 Fuel stock expenses undistributed ! ! !
(Schedule VI) ! ! !
154 Materials and supplies ! 48,946 ! 67,369 !
163 Stores expense undistributed (Schedule VII) ! ! 1,866 !
165 Prepayments ! 215,335 ! 519,959 !
174 Misc Current and Accrued Assets (Schedule VIII) ! ! !
Total Current and Accrued Assets ! 7,233,929 ! 5,043,415 !
! ! !
DEFERRED DEBITS ! ! !
! ! !
181 Unamortized debt expense ! 165,907 ! 202,949 !
182 Other regulatory assets ! 148,563 ! !
184 Clearing accounts ! ! !
186 Miscellaneous deferred debits (Schedule IX) ! 537,893 ! 1,537,447 !
188 Research, development, or demonstration ! ! !
expenditures (Schedule X) ! ! !
190 Accumulated deferred income taxes ! 1,596,407 ! 1,561,320 !
Total Deferred Debits ! 2,448,770 ! 3,301,716 !
TOTAL ASSETS AND OTHER DEBITS ! 31,931,950 ! 32,527,350 !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
SCHEDULE I - COMPARATIVE BALANCE SHEET
<CAPTION>
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31, 1993
CURRENT PRIOR
! ! !
PROPRIETARY CAPITAL ! ! !
! ! !
<S> <C> <C>
201 Common stock issued (Schedule XI) ! 1,000 ! 1,000 !
211 Miscellaneous paid-in-capital (Schedule XI) ! 5,000,000 ! 5,000,000 !
215 Appropriated retained earnings (Schedule XI) ! ! !
216 Unappropriated retained earnings ! ! !
(Schedule XI) ! (85,897)! (479,250)!
Total Proprietary Capital ! 4,915,103 ! 4,521,750 !
! ! !
LONG-TERM DEBT ! ! !
! ! !
223 Advances from associate companies ! ! !
(Schedule XII) ! ! !
2240.1 Other long-term debt (Schedule XII) ! 14,500,000 ! 16,700,000 !
225 Unamortized premium on long-term debt ! ! !
226 Unamortized discount on long-term ! ! !
debt-debit ! ! !
Total Long-Term Debt ! 14,500,000 ! 16,700,000 !
! ! !
227 Obligations under capital leases - non ! ! !
current ! 281,844 ! 1,231,945 !
! ! !
CURRENT AND ACCRUED LIABILITIES ! ! !
! ! !
2240.2 Current Materities - Long-Term Debt ! 1,100,000 ! 1,100,000 !
231 Notes payable ! ! !
232 Accounts payable ! 1,627,076 ! 1,697,132 !
233 Notes payable to associate companies ! ! !
(Schedule XIII) ! ! !
234 Accounts payable to associate companies ! ! !
(Schedule XIII) ! 58,660 ! 225,655 !
236 Taxes accrued ! 7,482 ! 28,821 !
237 Interest accrued ! 803,468 ! 922,120 !
238 Dividends declared ! ! !
241 Tax collections payable ! 224 ! 298,704 !
242 Miscellaneous current and accrued ! ! !
liabilities (Schedule XIII) ! 67,874 ! 2,672,823 !
243 Obligations under capital leases - current ! 1,216,566 ! 1,235,619 !
Total Current and Accrued Liabilities ! 4,881,350 ! 8,180,874 !
! ! !
DEFERRED CREDITS ! ! !
! ! !
253 Other deferred credits ! 5,709,570 ! 61,632 !
255 Accumulated deferred investment tax credits ! ! !
Total Deferred Credits ! 5,709,570 ! 61,632 !
! ! !
282 ACCUMULATED DEFERRED INCOME TAXES ! 1,644,083 ! 1,831,149 !
! ! !
TOTAL LIABILITIES & PROPRIETARY CAPITAL ! 31,931,950 ! 32,527,350 !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
SCHEDULE II - SERVICE COMPANY PROPERTY
<CAPTION>
! BALANCE AT ! !RETIREMENTS! ! BALANCE !
! BEGINNING ! ! OR !OTHER1/! AT CLOSE !
DESCRIPTION ! OF YEAR !ADDITIONS ! SALES !CHANGES! OF YEAR !
! ! ! ! ! !
<S> <C> <C> <C> <C> <C>
SERVICE COMPANY PROPERTY ! ! ! ! ! !
! ! ! ! ! !
Account ! ! ! ! ! !
! ! ! ! ! !
301 ORGANIZATION ! 9,040 ! ! ! ! 9,040 !
! ! ! ! ! !
303 MISCELLANEOUS ! ! ! ! ! !
INTANGIBLE PLANT ! 1,985,072 ! 201,352 ! ! ! 2,186,424 !
! ! ! ! ! !
304 LAND & LAND RIGHTS ! 717,080 ! ! ! ! 717,080 !
! ! ! ! ! !
305 STRUCTURES AND ! ! ! ! ! !
IMPROVEMENTS ! 16,320,569 ! 2,927 ! 1,020 ! ! 16,322,476 !
! ! ! ! ! !
306 LEASEHOLD ! 542,449 ! ! ! ! 542,449 !
IMPROVEMENTS ! ! ! ! ! !
! ! ! ! ! !
307 EQUIPMENT 2/ ! 7,265,935 ! 110,741 ! ! ! 7,376,676 !
! ! ! ! ! !
308 OFFICE FURNITURE ! ! ! ! ! !
AND EQUIPMENT ! 3,455,437 ! 69,103 ! 21,110 ! ! 3,503,430 !
! ! ! ! ! !
309 AUTOMOBILES, ! ! ! ! ! !
OTHER VEHICLES ! ! ! ! ! !
AND RELATED ! ! ! ! ! !
GARAGE EQUIPMENT ! 5,392 ! ! 5,392 ! ! !
! ! ! ! ! !
310 AIRCRAFT & AIRPORT ! ! ! ! ! !
EQUIPMENT ! ! ! ! ! !
! ! ! ! ! !
311 OTHER SERVICE ! ! ! ! ! !
COMPANY ! ! ! ! ! !
PROPERTY 3/ ! ! ! ! ! !
! ! ! ! ! !
SUB-TOTAL ! 30,300,974 ! 384,123 ! 27,522 ! ! 30,657,575 !
! ! ! ! ! !
107 CONSTRUCTION ! ! ! ! ! !
WORK IN ! ! ! ! ! !
PROGRESS 4/ ! 159,202 ! 11,824 ! ! ! 171,026 !
! ! ! ! ! !
TOTAL ! 30,460,176 ! 395,947 ! 27,522 ! ! 30,828,601 !
___________________________________________________________________________________
<FN>
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
</TABLE>
*NEW PAGE*
<TABLE>
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:
<CAPTION>
! ! BALANCE !
! NET ! AT CLOSE !
SUBACCOUNT DESCRIPTION ! ADDITIONS ! OF YEAR !
! ! !
<S> <C> <C>
110 Cellular Phone Equipment ! ! 2,731 !
131 Word Processing Equipment ! ! 16,572 !
133 Data Processing Equipment ! 3,137 ! 1,146,415 !
240 Office Services Equipment ! ! 450 !
310 Employee Communication/Visual Aids Equipment ! ! 71,013 !
364 Purchasing/Material Management Equipment ! ! 100,313 !
372 Energy Management Equipment ! ! 26,201 !
417 Treasury Department Equipment ! ! 20,117 !
422 Rate and Revenue Research Equipment ! ! 49,554 !
427 Accounting Systems Equipment ! ! 1,736 !
441 Customer & Consumer Service Equipment ! ! 360,986 !
452 West Bridgewater Building Equipment ! ! 47,023 !
565 Meter Testing Equipment ! 1,658 ! 70,726 !
570 Engineering Equipment ! ! 147,794 !
581 Substation/Communication Equipment ! 105,946 ! 356,122 !
000 Microwave Equipment ! ! 4,958,923 !
! ! !
TOTAL ! 110,741 ! 7,376,676 !
_________________________________________________________________________________
3/ DESCRIBE OTHER SERVICE COMPANY PROPERTY:
NONE
_________________________________________________________________________________
4/ DESCRIBE CONSTRUCTION WORK IN PROGRESS:
Misc. Building Improvements 3,311
Office Furniture & Equipment 39,086
Office Equipment For System Operations 88,074
Workstation Hardware & Software 35,304
Expansion of E-Mail System 5,251
Total 171,026
_______
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
<CAPTION>
! ! ADDITIONS! ! OTHER ! !
!BALANCE AT!CHARGED TO! ! CHANGES ! BALANCE !
!BEGINNING ! ACCOUNTS ! ! ADD ! AT CLOSE !
DESCRIPTION ! OF YEAR ! 403 & 405!RETIREMENTS!(DEDUCT)1/! OF YEAR !
! ! ! ! ! !
<S> <C> <C> <C> <C> <C>
Account ! ! ! ! ! !
! ! ! ! ! !
301 ORGANIZATION ! ! ! ! ! !
! ! ! ! ! !
303 MISCELLANEOUS ! ! ! ! ! !
INTANGIBLE PLANT !1,141,785 ! 392,277 ! ! !1,534,062 !
! ! ! ! ! !
304 LAND AND LAND RIGHTS ! ! ! ! ! !
! ! ! ! ! !
305 STRUCTURES AND ! ! ! ! ! !
IMPROVEMENTS !2,033,640 ! 407,644 ! 1,020 ! !2,440,264 !
! ! ! ! ! !
306 LEASEHOLD ! ! ! ! ! !
IMPROVEMENTS ! 540,945 ! 1,503 ! ! ! 542,448 !
! ! ! ! ! !
307 EQUIPMENT !3,483,711 ! 389,935 ! ! !3,873,646 !
! ! ! ! ! !
308 OFFICE FURNITURE ! ! ! ! ! !
AND FIXTURES !1,539,439 ! 153,368 ! 21,110 ! 14,142 !1,685,839 !
! ! ! ! ! !
309 AUTOMOBILES, OTHER ! ! ! ! ! !
VEHICLES AND RELATED ! ! ! ! ! !
GARAGE EQUIPMENT ! 6,001 ! (608)! 5,392 ! 1,500 ! 1,501 !
! ! ! ! ! !
310 AIRCRAFT AND AIRPORT ! ! ! ! ! !
EQUIPMENT ! ! ! ! ! !
! ! ! ! ! !
311 OTHER SERVICE ! ! ! ! ! !
COMPANY PROPERTY ! ! ! ! ! !
! ! ! ! ! !
!8,745,521 !1,344,119 ! 27,522 ! 15,642 !10,077,760!
__________________________________________________________________________________
<FN>
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
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.
<CAPTION>
__________________________________________________________________________________
! BALANCE AT ! BALANCE !
! BEGINNING ! AT CLOSE !
D E S C R I P T I O N ! OF YEAR ! OF YEAR !
! ! !
<S> <C> <C>
ACCOUNT 123 - INVESTMENT IN ASSOCIATE COMPANIES ! ! !
! ! !
NONE ! ! !
! ! !
ACCOUNT 124 - OTHER INVESTMENTS ! ! !
! ! !
NONE ! ! !
! ! !
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS ! ! !
! ! !
Shawmut Bank, N.A. ! 1,005,000 ! -0- !
! ! !
TOTAL ! 1,005,000 ! -0- !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
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.
<CAPTION>
__________________________________________________________________________________
! BALANCE AT ! BALANCE !
! BEGINNING ! AT CLOSE !
D E S C R I P T I O N ! OF YEAR ! OF YEAR !
! ! !
<S> <C> <C>
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ! ! !
ASSOCIATE COMPANIES ! ! !
! ! !
Blackstone Valley Electric Co. ! 659,135 ! 1,310,102 !
Eastern Utilities Associates ! 201,110 ! 117,444 !
Montaup Electric Company ! 356,779 ! 1,103,687 !
Eastern Edison Company ! 1,140,446 ! 2,331,818 !
EUA Cogenex Corporation ! 154,344 ! 715,691 !
EUA Energy Investment Corporation ! 4,912 ! 52,817 !
EUA Ocean State Corporation ! 20,749 ! 23,162 !
Newport Electric Corporation ! 319,266 ! 563,287 !
Great Bay Power Corporation(A) ! 222,329 ! - 0 - !
EUA NOVA ! - 0 - ! 31,052 !
! ! !
! ! !
TOTAL ACCOUNTS RECEIVABLE ! 3,079,070 ! 6,249,060 !
! TOTAL !
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS: ! PAYMENTS !
! !
Analysis by Company: ! !
! !
Blackstone Valley Electric Company ! 1,303,211 !
Eastern Utilities Associates ! 114,818 !
Montaup Electric Company ! 1,025,266 !
Eastern Edison Company ! 3,278,060 !
Great Bay Power Corporation(A) ! 5,563 !
EUA Cogenex Corporation ! 433,185 !
EUA Energy Investment Corporation ! 431 !
EUA Ocean State Corporation ! 23,223 !
Newport Electric Corporation ! 470,167 !
EUA NOVA ! 9,438 !
! !
TOTAL PAYMENTS ! 6,663,362 !
<FN>
Convenience payments paid by the Service Corporation on behalf of associated companies
were primarily for equipment leasing, postage, commitment fees, advertising, outside
services and insurance plans.
(A) Effective February 5, 1993, Great Bay Power Corporation (f.k.a. EUA Power
Corporation) is no longer an associated company of the EUA System, as a result of a
settlement agreement reached between EUA, EUA Power Corporation, and the Bondholders
Committtee representing the holders of EUA Power's secured notes.
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
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.
<CAPTION>
__________________________________________________________________________________
D E S C R I P T I O N ! LABOR ! EXPENSES ! TOTAL !
! ! ! !
<S> <C> <C> <C>
ACCOUNT 152 - FUEL STOCK EXPENSES ! ! ! !
UNDISTRIBUTED ! ! ! !
! ! ! !
NONE ! ! ! !
! ! ! !
TOTAL ! - 0 - ! - 0 - ! - 0 - !
__________________________________________________________________________________
SUMMARY:
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
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.
<CAPTION>
__________________________________________________________________________________
D E S C R I P T I O N ! LABOR ! EXPENSES ! TOTAL !
! ! ! !
<S> <C> <C> <C>
ACCOUNT 163 - STORES EXPENSE UNDISTRIBUTED ! ! ! !
! ! ! !
Stores expense incurred during year ! ! ! !
distributed as follows: ! 34 ! 14,685 ! 14,719 !
! ! ! !
! ! ! !
Blackstone Valley Electric ! (6)! (2,486)! (2,492)!
Montaup Electric Company ! (11)! (4,671)! (4,682)!
Eastern Edison Company ! (12)! (5,479)! (5,491)!
Newport Electric Corporation ! (5)! (2,049)! (2,054)!
! ! ! !
! ! ! !
TOTAL ! - 0 - ! - 0 - ! - 0 - !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
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.
<CAPTION>
__________________________________________________________________________________
! BALANCE AT ! BALANCE !
! BEGINNING ! AT CLOSE !
D E S C R I P T I O N ! OF YEAR ! OF YEAR !
<S> <C> <C>
! ! !
ACCOUNT 174 - MISCELLANEOUS CURRENT AND ! ! !
ACCRUED ASSETS ! ! !
! ! !
NONE ! ! !
! ! !
! ! !
TOTAL ! -0- ! - 0 - !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS
INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000
may be grouped by class showing the number of items in each class.
<CAPTION>
__________________________________________________________________________________
! BALANCE AT ! BALANCE !
! BEGINNING ! AT CLOSE !
D E S C R I P T I O N ! OF YEAR ! OF YEAR !
<S> <C> <C>
! ! !
ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS ! ! !
! ! !
SCADA II ! (20,348)! -0- !
MFT Assessment ! 1,223,110 ! 532,710 !
Long Term FAS96 ! 234,729 ! -0- !
Federal Income and Deferred Tax Adjustment ! 98,435 ! -0- !
Miscellaneous Deferred Debits (9) ! 1,521 ! 5,183 !
! ! !
TOTAL ! 1,537,447 ! 537,893 !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
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.
<CAPTION>
__________________________________________________________________________________
D E S C R I P T I O N ! AMOUNT !
! !
<S> <C>
ACCOUNT 188 - RESEARCH, DEVELOPMENT, OR DEMONSTRATION ! !
EXPENDITURES ! !
! !
NONE ! !
! !
TOTAL ! - 0 - !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
SCHEDULE XI - PROPRIETARY CAPITAL
<CAPTION>
! NUMBER OF ! PAR OR STATED ! !
! SHARES ! VALUE ! OUTSTANDING CLOSE OF PERIOD !
ACCOUNT NUMBER CLASS OF STOCK ! AUTHORIZED ! PER SHARE ! NO. OF SHARES ! TOTAL AMOUNT !
<S> <C> <C> <C> <C>
201 COMMON STOCK ISSUED ! 5,000 ! $10.00 ! 100 ! $1,000 !
INSTRUCTIONS: Classify amounts in each account with brief explanation, disclosing the general nature of
transactions which give rise to the reported amounts.
</TABLE>
<TABLE>
<CAPTION>
DISCRIPTION ! AMOUNT !
<S> <C>
ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL ! $5,000,000 !
! !
ACCOUNT 215 - APPROPRIATED RETAINED EARINGS ! !
! !
(1) See Schedule XIV Notes to Financial Statements, Page 19.! !
TOTAL! $5,000,000 !
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 non-associates per the
General Instructions of the Uniform System of Accounts. For dividends paid during the year in cash
or otherwise, provide rate percentage, amount of dividend, date declared and date paid.
</TABLE>
<TABLE>
<CAPTION>
! BALANCE AT ! NET INCOME ! ! BALANCE AT !
! BEGINNING ! OR ! DIVIDENDS! CLOSE !
DESCRIPTION ! OF YEAR ! (LOSS) ! PAID ! OF YEAR !
<S> <C> <C> <C> <C>
ACCOUNT 216 - UNAPPROPRIATED RETAINED EARNINGS ! (479,250)! 393,353 ! -0- ! (85,897) !
! ! ! ! !
TOTAL ! (479,250)! 393,353 ! -0- ! (85,897) !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
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 the obligation, date of maturity, interest rate, and the
amount authorized and outstanding.
<CAPTION>
!TERMS OF OBLIG! DATE ! ! ! BALANCE AT! ! ! BALANCE AT !
! CLASS&SERIES ! OF ! INTEREST! AMOUNT ! BEGINNING! ! 1/ ! CLOSE !
NAME OF CREDITOR !OF OBLIGATION ! MATURITY! RATE ! AUTHORIZED ! OF YEAR ! ADDITIONS !DEDUCTIONS! OF YEAR !
<S> <C> <C> <C> <C> <C> <C> <C> <C> !
ACCOUNT 223 - ! ! ! ! ! ! ! ! !
ADVANCES ! ! ! ! ! ! ! ! !
FROM ! ! ! ! ! ! ! ! !
ASSOCIATE ! ! ! ! ! ! ! ! !
COMPANIES ! ! ! ! ! ! ! ! !
! ! ! ! ! ! ! ! !
! ! ! ! ! ! ! ! !
ACCOUNT 224 - ! ! ! ! ! ! ! ! !
OTHER LONG - ! Senior ! ! ! ! ! ! ! !
TERM DEBT: ! Secured Note! 2008 ! 10.2% ! 20,000,000!16,700,000 ! !2,200,000 ! 14,500,000 !
(2) ! ! ! ! ! ! ! ! !
TOTAL ! ! ! ! 20,000,000!16,700,000 ! !2,200,000 ! 14,500,000 !
1/ GIVE AN EXPLANATION OF DEDUCTIONS:
(1) Current maturities - Long-term debt due within one year.
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
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.
<CAPTION>
__________________________________________________________________________________
! BALANCE AT ! BALANCE !
! BEGINNING ! AT CLOSE !
D E S C R I P T I O N ! OF YEAR ! OF YEAR !
! ! !
<S> <C> <C>
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES ! ! !
! ! !
NONE ! ! !
! ! !
TOTAL ! - 0 - ! - 0 - !
! ! !
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE ! ! !
COMPANIES ! ! !
! ! !
Blackstone Valley Electric Co. ! 53,981 ! 42,428 !
Montaup Electric Co. ! 15,823 ! 114 !
Eastern Edison Company ! 36,549 ! 5,562 !
Eastern Utilities Associates ! 98,387 ! 1,627 !
Great Bay Power Corporation ! 3,798 ! -0- !
EUA Energy Investment Corp. ! 243 ! -0- !
EUA Ocean State Corporation ! 4,004 ! -0- !
Newport Electric Corporation ! 12,870 ! 8,929 !
! ! !
TOTAL ! 225,655 ! 58,660 !
! ! !
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ! ! !
ACCRUED LIABILITIES ! ! !
! ! !
Insurance Reserve ! -0- ! 50,000 !
RI Sales Tax ! -0- ! 15,000 !
Pension Liability ! 2,654,210 ! -0- !
Commitment Fees Accrued ! 3,488 ! 2,749 !
D & B On Line CPR System ! 15,000 ! -0- !
Miscellaneous ! 125 ! 125 !
TOTAL ! 2,672,823 ! 67,874 !
</TABLE>
*NEW PAGE*
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS
A. Summary of Significant Accounting Policies
General
EUA Service Corporation (the "Company") is a wholly-owned subsidiary of
Eastern Utilities Associates (EUA) and is subject to the jurisdiction of
the Securities and Exchange Commission (SEC) under the Public Utility
Holding Company Act of 1935 (the "Act"); its accounts are maintained
under the system of accounts prescribed by the Act.
Income and Expenses
The Company provides administrative, data processing, engineering,
financial and certain other services, at cost, to the associated
companies in the EUA System. The costs of the services are determined on
a direct-charge basis to the extent practicable. Indirect costs are
prorated based upon departmental allocation factors developed and
reviewed by the Company's department supervisors and by associated
companies' management. Operating revenues in the accompanying statements
of income include the Company's billings to its affiliates for its
operating costs. In accordance with an order of the SEC, the Company is
permitted to bill a return on its total equity capitalization, calculated
on the basis of a formula prescribed by the SEC.
In 1992 the company commenced allocating to its affiliated companies the
profits generated from performance of services to non-affiliated
companies and other miscellaneous revenues. These profits were allocated
as a reduction in the level of equity return billed to affiliated
companies, in accordance with the SEC Uniform System of Accounts general
instruction. In addition, profits from non-affiliates and miscellaneous
revenues for the years 1989 through 1991 were allocated to affiliated
companies in 1992. This change resulted in a reduction in equity return
permitted to be billed of $267,336 for 1989 through 1991 and $84,679 for
1992. However, because the change is immaterial in relation to the total
affiliated billings the prior years adjustment had been reflected in the
1992 billings to affiliates. In 1993 $116,964 of non-affiliated profits
was utilized to reduce the level of equity return billed to affiliated
companies.
Utility Plant and Depreciation
Real property and equipment are reported at its original cost.
Depreciation is computed using the straight-line method based on
estimated useful lives of various classes of equipment. Provisions for
depreciation were equivalent to a composite rate of approximately 4.2% in
1993 and 3.6% in 1992 based on the average depreciable property balances
at the beginning and end of each year. Equipment and real property
leased under capital leases are amortized over the lives of the respective
leases.
*NEW PAGE*
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
Reclassifications
Certain prior period amounts on the financial statements have been
reclassified to conform with current presentation.
Cash and Temporary Cash Investments
The Company considers all highly liquid investments purchased with a
maturity of three months or less when acquired to be cash equivalents.
Federal Income Taxes
In accordance with the EUA System's tax allocation agreement, the general
policy of the Company with respect to accounting for federal income taxes
is to reflect in income the estimated amount of taxes currently payable,
as determined from the consolidated tax return on an allocated basis and
to provide for deferred taxes on certain items subject to temporary
differences. Also, pursuant to that policy, the tax liability
attributable to the Company's return from affiliates on its total equity
capitalization is billed to and recorded as liabilities on the books of
its affiliates rather than as a liability of the company. See Note B for
details of major deferred tax items.
Capitalized Interest
In 1992 capitalized equity and debt interest components represent the
estimated cost of equity and borrowed funds used to finance the Company's
development of the Supervisory Control and Data Acquisition (SCADA II)
computer system, which are ultimately recoverable from the regulated
affiliates. The equity portion of $45,253 is included in Other income
and was allocated to affiliated companies as a reduction in compensation
for use of capital. The interest portion of $321,242 was allocated to
affiliated companies as a reduction in interest expense.
B. Income Taxes:
Components of income tax expense for the years 1993 and 1992 are as
follows:
(in thousands)
1993 1992
Federal:
Current $(85) $ 5
Deferred (44) 78
(129) 83
State:
Current 99 37
Total income tax (credit) expense $(30) $120
_____ ____
*NEW PAGE*
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
Total income tax expense was different from the amounts computed by
applying federal income tax statutory rates to book income subject to
tax, for the following reasons:
(in thousands)
1993 1992
Federal income tax computed at statutory rates $127 $145
Increases (decreases) in tax from:
Prior period tax adjustments (38) 35
Tax liabilities assumed by affiliates (156) (69)
State taxes, net of federal income
tax benefit 64 25
Other (27) (16)
Total income tax expense $(30) $120
____ ____
The provisions for deferred income taxes resulting from temporary
differences is comprised of the following:
(in thousands)
1993 1992
Excess tax depreciation $ 70 $ (97)
Accrued vacation (177) 31
Net operating loss carryforward - 144
IRS Audit interest 22 -
Other 41 -
Total $(44) $ 78
_____ ____
The Company adopted FASB Statement No. 109, "Accounting for Income Taxes"
(FAS109) effective as of January 1, 1993. FAS109 superseded FASB
Statement No. 96 (FAS96) which required recognition of deferred income
taxes for temporary differences that are reported in different years for
financial reporting and tax purposes using the liability method. Under
the liability method, deferred tax liabilities or assets are computed
using the tax rates that will be in effect when temporary differences
reverse. The adoption of FAS109 had no impact on the results of
operations for 1993. At December 31, 1993 total deferred tax assets for
which no valuation allowance was deemed necessary were $1.7 million and
total deferred tax liabilities were $1.8 million. Total deferred tax
assets and liabilities are comprised as follows:
*NEW PAGE*
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
(in thousands)
Deferred Tax Deferred Tax
Assets Liabilities
Plant related differences $ $1,732
Alternative minimum tax 66
Bad debts 1,596
Other 42 20
Total $ 1,704 $1,752
______ ______
The Company has approximately $66,000 of alternative minimum tax credits
which can be utilized to reduce the consolidated regular tax liability
and have no expiration.
C. Long-Term Debt:
The Company's 10.2% Senior Secured Notes due 2008 are collateralized
primarily by a mortgage on the Company's operations building located in
West Bridgewater, Massachusetts.
Under the agreement securing the Notes, the Company is required at all
times, to maintain its common equity balance at the greater of $1,500,000
or $3,000,000 less the amount of any write-down or write-off, as required
by generally accepted accounting principles, net of tax. At December 31,
1993 and 1992 the Company was in compliance with this provision.
The aggregate amount of the Company's cash sinking fund requirement for
long-term debt for five years following 1993 is $1,100,000 for each of
the years 1994 through 1998.
EUA has entered into equity maintenance agreements in connection with the
issuance of the Company's notes.
D. Capital Leases:
The Company conducts the major portion of its operations as a service
corporation in the electric utility industry using certain leased data
processing and office equipment.
*NEW PAGE*
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
The following is an analysis of the leased property under capital leases
as of December 31,
1993 1992
Equipment $ 5,395,732 $ 5,350,111
Less accumulated amortization (3,897,322) (2,882,547)
Net leased equipment $ 1,498,410 $ 2,467,564
___________ __________
The Company reclassifed the 1992 financial statements to reflect its
obligations under an equipment lease agreement as an operating rather
than a capital lease. The result was the removal of equipment and the
related capital lease obligation of $4,543,851 at December 31, 1992 from
its balance sheet. There was no effect on the net worth of December 31,
1992 and the results of operation for the year then ended.
The following is a schedule of approximate future minimum lease payment
commitments for capital and noncancelable leases as of December 31, 1993:
Capital Operating
Years ending December 31: Leases Leases
1994 $1,285,036 $1,651,570
1995 177,414 1,278,551
1996 71,856 1,278,551
1997 35,752 1,278,551
1998 11,876 1,206,934
After 1998 0 1,322,775
Total future minimum lease payments 1,581,934 $8,016,932
Less interest 83,524
Present value of net minimum lease
payments $1,498,410
__________
Total rent expense for operating leases was approximately $1,404,197 and
$618,905 for 1993 and 1992, respectively.
*NEW PAGE*
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
E. Related-Party Transactions:
The Company generates a majority of its revenues from the billing of
services rendered to its affiliates within the EUA System. An analysis
of services billed to affiliated companies for the years ended December
31, 1993 and 1992, is as follows:
(in thousands)
1993 1992
Eastern Edison Company $16,975 $15,217
Blackstone Valley Electric Company 9,335 8,400
Montaup Electric Company 10,443 7,979
Newport Electric Corporation 4,642 4,001
Great Bay Power Corporation 28 420
EUA Cogenex Corporation 965 568
Eastern Utilities Associates 318 341
EUA Ocean State Corporation 141 176
EUA Energy Investment Corporation 97 11
$42,944 $37,113
_______ _______
Effective February 5, 1993, Great Bay Power Corporation (f.k.a., EUA
Power Corporation) is no longer an affiliated company of the EUA System,
as a result of a settlement agreement reached between EUA Power
Corporation and the Bondholders Committee representing the holders of EUA
Power's secured notes.
F. Pensions:
The Company participates with other EUA System companies in a defined
benefit pension plan covering substantially all of their employees. Plan
benefits are based on years of service and average compensation over the
four years prior to retirement or in the case of the supplemental
retirement plan for certain officers of the EUA System, benefits are
based on compensation at retirement date. It is the EUA System's policy
to fund the regular plan on a current basis in amounts determined to meet
the funding standards established by the Employee Retirement Income
Security Act of 1974.
*NEW PAGE*
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
The Company's net periodic pension cost amounted to $1,325,006 for 1993
and $943,615 for 1992.
1993 1992
Service cost - benefits earned during
the period $ 918,438 $ 835,792
Plus (less):
Interest cost on projected
benefit obligation 2,289,547 2,009,008
Actual return on assets (3,308,314) (1,456,263)
Net amortization and deferrals 1,425,335 (444,922)
Total pension cost $1,325,006 $ 943,615
__________ __________
The weighted average discount rate and rate of increase in future
compensation levels used in determining the actuarial present value of
accumulated benefit obligations in 1993 and 1992 was 8.75%. The expected
long-term rate of return of plan assets was 10% in both years.
The funded status of the plans cannot be presented separately for the
Company as it participates in the plan with other subsidiaries of EUA.
The assumptions used to determine pension costs changed effective January
1, 1994 to 7.25%, 4.75% and 9.50% for the discount rate, compensation
increase rate and expected long-term return on assets, respectively.
These rates were used to calculate the plans funded status at December
31, 1993.
All benefits provided under the supplemental plan are unfunded and any
payments to plan participants are made by EUA. As of December 31, 1993
approximately $2.1 million was included in other deferred credits for
this plan. For the years ended December 31, 1993, and 1992 expenses
related to the supplemental plan were $2.3 million and $0.2 million
respectively. The company bills out these costs to its affiliates as
part of its operating costs and therefore the supplemental plan does not
have a significant impact on the company's results of operations.
*NEW PAGE*
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
G. Post-Retirement Benefits:
Retired employees are entitled to participate in health care and life
insurance benefit plans. Health care benefits are subject to deductibles
and other limitations. Health care and life insurance benefits are
partially funded by the company for all qualified employees.
The Company adopted FAS106, "Accounting for Post-Retirement Benefits
Other Than Pensions," as of January 1, 1993. This standard established
accounting and reporting standards for such post-retirement benefits as
health care and life insurance. FAS106 further requires the accrual of
the cost of such benefits during an employee's years of service and the
recognition of the actuarially determined total post-retirement benefit
obligations (Transition Obligation) earned by existing employees and
retirees. EUA elected to recognize the Transition Obligation over a
period of 20 years, as permitted by FAS106. The resultant annual
obligation, net of capitalized amounts, was approximately $2.0 million in
1993.
The total cost of post-retirement benefits other than pensions for 1993
includes the following components (in thousands):
1993
Service cost $ 431
Interest cost 1,047
Actual return on plan assets (41)
Amortization of transition obligation 584
Other amortization and deferrals-net 22
Total post-retirement benefit cost $2,043
______
Assumptions:
Discount rate 8.75%
Health care cost trend rate - near-term 13.00%
- long term 6.25%
Salary increase rate 6.00%
Rate of return on plan assets - non union 5.50%
*NEW PAGE*
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
1993
Reconciliation of funded status:
Accumulated post retirement benefit obligation (APBO):
Retirees $ (3,567)
Active employees fully eligible for benefits (2,712)
Other active employees (7,877)
Total (14,156)
Fair value of assets, primarily notes & bonds 2,186
Unrecognized transition obligation 11,093
Unrecognized prior service cost -
Unrecognized net loss (gain) 1,219
Prepaid post retirement benefit cost $ 342
______
The assumptions used to determine post retirement benefit costs were
changed effective January 1, 1994 to 7.25%, 13.0% and 5.0% for the
discount rate, near-term health care cost trend and long term health care
cost trend, respectively. These assumptions were used to calculate the
funded status of post-retirement benefits at December 31, 1993.
Increasing the assumed health care cost trend rate by 1% each year would
increase the total post-retirement benefit cost for 1993 by approximately
$212,000 and increase the total accumulated post-retirement benefit
obligation by approximately $2.5 million.
Prior to 1993 the EUA System followed the "pay-as-you-go" methodology for
accounting for post-retirement benefits other than pensions. The costs
of the benefits which amounted to $236,000 for the Company in 1992 were
charged to expense.
The Company has also established an irrevocable external Voluntary
Employee Benefit Association Trust Fund as required by regulatory
decisions. Contributions to the fund commenced in March 1993 and totaled
$2,385,000 during 1993.
H. Post Employment Benefits:
In November 1992 the FASB issued Statement No. 112 "Employers' Accounting
for Post Employment Benefits". The Company is required to adopt this
standard no later than January 1, 1994. The Company will bill these
costs to its affiliates as part of its operating costs. Therefore, the
adoption of FAS 112 is not expected to have a significant impact on the
Company's results of operations.
*NEW PAGE*
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
I. Lines of Credit:
The EUA System companies, which includes the Company, maintain short-term
lines of credit with various banks aggregating approximately $140
million. At December 31, 1993 unused short-term lines of credit amounted
to $103 million. However, these credit lines were also available to
other EUA System companies under joint credit line arrangements. In
accordance with informal agreements with the various banks, commitment
fees are required to maintain the lines of credit.
J. Fair Value of Financial Instruments:
The following methods and assumptions were used to estimate the fair
value of each class of financial instruments for which it is practicable
to estimate:
Cash and Temporary Cash Investments: The carrying amount approximates
fair value because of the short-term maturity of those instruments.
Long-term Debt: The fair value of the Company's long-term debt were
based on quoted market prices for such securities at December 31, 1993.
The estimated fair value of the company's financial instruments at
December 31, 1993 are as follows:
Carrying Fair
Amount Value
Cash and Temporary Cash Investments $ 145 $ 145
Long-Term Debt 15,600 17,979
*NEW PAGE*
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
K. Commitments and Contingencies:
The Company has been assessed, and has paid, approximately $1,200,000 in
additional taxes and interest by the Massachusetts Department of Revenue
(DOR) in connection with an audit of the Company's state tax returns for
the years 1984 through 1986. The assessment was attributable to a
computation of income by the DOR on services rendered to affiliated
companies over and above what it actually charged the companies for the
services. The Company disagrees with the DOR's position and has filed
for an abatement of the full amount of the assessment. Accordingly,
these amounts have not been charged to expense.
On February 23, 1993, the Company was notified by the DOR that the
addition of imputed income by the DOR was incorrect with respect to
taxable year 1984 and has received an abatement of the additional tax
assessed for that year. In the same notification, the DOR has taken the
position that the Applications for Abatement related to taxable years
1985 and 1986 were not timely filed and therefore the issue of
incorrectly imputed income cannot be considered. The Company disagreed
with the DOR position and filed an appeal with the Appellate tax board on
May 5, 1993. This matter will most likely come to trial in late 1994 or
early 1995 and the outcome is uncertain at this time.
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
SCHEDULE XV
STATEMENT OF INCOME
<CAPTION>
__________________________________________________________________________________
ACCOUNT D E S C R I P T I O N ! CURRENT YEAR ! PRIOR YEAR !
! ! !
INCOME ! ! !
<S> <C> <C>
! ! !
457 Services rendered to associate companies ! 42,915,665 ! 37,113,191 !
458 Services rendered to nonassociate companies ! 624,732 ! 516,023 !
419.1 Capitalized Interest - Equity ! ! 45,253 !
421 Miscellaneous income ! 11,701 ! 11,520 !
! ! !
Total Income ! 43,552,098 ! 37,685,987 !
! ! !
EXPENSE ! ! !
! ! !
920 Salaries and wages ! 22,116,042 ! 21,179,698 !
921 Office supplies and expenses ! 1,546,076 ! 1,530,617 !
922 Administrative expense transferred - credit ! ! (8,715)!
923 Outside services employed ! 1,275,343 ! 1,128,183 !
924 Property insurance ! 52,519 ! 51,468 !
925 Injuries and damages ! 502,118 ! 624,603 !
926 Employee pensions and benefits ! 8,343,171 ! 4,143,190 !
928 Regulatory commission expense ! ! !
930.1 General advertising expenses ! ! !
930.2 Miscellaneous general expenses ! 713,288 ! 460,858 !
931 Rents ! 2,686,384 ! 2,628,035 !
935 Maintenance of structures and equipment ! 924,337 ! 855,928 !
403 Depreciation and amortization expense ! 1,344,119 ! 1,108,961 !
408 Taxes other than income taxes ! 2,009,051 ! 1,897,071 !
409 Income taxes ! 14,335 ! 42,264 !
410 Provision for deferred income taxes ! (44,342)! 77,545 !
411 Provision for deferred income taxes - credit! ! !
419.0 Other interest income ! (692)! (1,694)!
421.0 Misc. non-operating income billed ! (114)! !
426.3 Penalties ! 1,516 ! 150 !
426.5 Other deductions ! ! !
427 Interest on long-term debt ! 1,591,200 ! 1,815,600 !
428 Amort. debt discount and expense ! 37,043 ! 40,290 !
431 Other interest expense - ! 47,351 ! 127,409 !
432 Capitalized Interest- Borrowed Funds ! ! (321,242)!
! ! !
Total Expense ! 43,158,745 ! 37,380,219 !
! ! !
! ! !
! ! !
! ! !
! ! !
! ! !
! ! !
Net Income ! 393,353 ! 305,768 !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
<CAPTION>
___________________________________________________________________________________
! DIRECT ! INDIRECT !COMPENSATION! TOTAL !
! COSTS ! COSTS ! FOR USE ! AMOUNT !
NAME OF ASSOCIATE COMPANY ! CHARGED ! CHARGED ! OF CAPITAL ! BILLED !
! ! ! ! !
! 457-1 ! 457-2 ! 457-3 ! !
<S> <C> <C> <C> <C>
! ! ! ! !
Blackstone Valley Electric Co.! 7,860,629 ! 1,374,850 ! 99,141 ! 9,334,620 !
! ! ! ! !
Eastern Utilities Associates ! 279,511 ! 36,657 ! 1,937 ! 318,105 !
! ! ! ! !
Montaup Electric Company ! 9,207,717 ! 1,133,752 ! 101,024 ! 10,442,493 !
! ! ! ! !
Eastern Edison Company ! 14,173,539 ! 2,616,137 ! 185,597 ! 16,975,273 !
! ! ! ! !
EUA Cogenex Corporation ! 821,076 ! 129,635 ! 7,660 ! 958,371 !
! ! ! ! !
EUA Energy Investment Corp. ! 97,160 ! - 0 - ! - 0 - ! 97,160 !
! ! ! ! !
EUA Ocean State Corporation ! 123,182 ! 16,427 ! 1,487 ! 141,096 !
! ! ! ! !
EUA NOVA Division ! 6,549 ! - 0 - ! - 0 - ! 6,549 !
! ! ! ! !
Newport Electric Corporation ! 3,965,934 ! 626,548 ! 49,516 ! 4,641,998 !
! ! ! ! !
! ! ! ! !
TOTAL ! 36,535,297 ! 5,934,006 ! 446,362 ! 42,915,665 !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
ANALYSIS OF BILLING
NON-ASSOCIATE COMPANIES
ACCOUNT 458
<CAPTION>
! DIRECT ! INDIRECT ! COMPENSATION ! ! EXCESS ! TOTAL !
! COST ! COST ! FOR USE ! TOTAL ! OR ! AMOUNT !
NAME OF NON-ASSOCIATE COMPANY ! CHARGED ! CHARGED ! OF CAPITAL ! COST !DEFICIENCY ! BILLED !
! ! ! ! ! ! !
! 458-1 ! 458-2 ! 458-3 ! ! 458-4 ! !
<S> <C> <C> <C> <C> <C> <C>
Taunton Municipal Lighting - Data Link ! 4,097 ! ! ! 4,097 ! 673 ! 4,770 !
Taunton Municipal Lighting - G.L. ! 5,249 ! 2,183 ! ! 7,432 ! 12,268 ! 19,700 !
Taunton Municipal Lighting - Cust. Acct. ! 69,773 ! 12,227 ! ! 82,000 ! 149,160 ! 231,160 !
Taunton Municipal Lighting - A/P ! 8,271 ! 3,396 ! ! 11,667 ! 26,423 ! 38,090 !
Great Bay Power ! 136,860 ! 57,629 ! 4,190 ! 198,679 ! ! 198,679 !
West Center Street Realty - Land ! 20,197 ! ! ! 20,197 ! 10,373 ! 30,570 !
Ocean State Power - NEPOOL Activities ! 30,661 ! (109) ! ! 30,552 ! ! 30,552 !
Ocean State Power - Data Link ! 14,004 ! ! ! 14,004 ! 14,968 ! 28,972 !
Middleboro - SCADA Software ! 1,482 ! ! ! 1,482 ! 2,628 ! 4,110 !
Pascoag - SCADA Services ! 16,639 ! ! ! 16,639 ! 4,490 ! 21,129 !
North Attleboro - Meter Testing ! 266 ! 128 ! ! 394 ! 906 ! 1,300 !
General Non-Affiliated Activity ! 296,200 ! 422 ! ! 296,622 ! (296,622)! 0 !
North Attleboro - Mobile Trans. Study ! 9,801 ! 65 ! ! 9,866 ! 5,834 ! 15,700 !
! ! ! ! ! ! !
TOTAL ! 613,500 ! 75,941 ! 4,190 ! 693,631 ! (68,899)! 624,732 !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NON-ASSOCIATION COMPANIES
<CAPTION>
! ASSOCIATE COMPANY CHARGES ! NON-ASSOCIATE CO. CHARGES !
! DIRECT !INDIRECT ! !DIRECT !INDIRECT ! !
DESCRIPTION OF ITEMS ! COST ! COST ! TOTAL ! COST ! COST ! TOTAL !
<S> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES !21,392,552 ! 579,684 !21,972,236 ! 132,413 ! 11,393 ! 143,806 !
921 OFFICE SUPPLIES AND EXPENSES ! 943,357 ! 584,533 ! 1,527,890 ! 8,527 ! 9,659 ! 18,186 !
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT ! 0 ! ! 0 ! ! ! !
923 OUTSIDE SERVICES EMPLOYED ! 945,373 ! 254,045 ! 1,199,418 ! 71,025 ! 4,900 ! 75,925 !
924 PROPERTY INSURANCE ! 52,345 ! ! 52,345 ! (51)! 225 ! 174 !
925 INJURIES AND DAMAGES ! 491,458 ! 8,294 ! 499,752 ! 2,366 ! ! 2,366 !
926 EMPLOYEE PENSIONS AND BENEFITS ! 8,111,240 ! 194,676 ! 8,305,916 ! 37,018 ! 237 ! 37,255 !
928 REGULATORY COMMISSION EXPENSE ! 0 ! 0 ! 0 ! ! ! !
930.1 GENERAL ADVERTISING EXPENSE ! 0 ! 0 ! 0 ! ! ! !
!
930.2 MISC. GENERAL EXPENSE ! 547,549 ! 4,313 ! 551,862 ! 154,474 ! 6,952 ! 161,426 !
!
931 RENTS ! 1,670,178 ! 970,676 ! 2,640,854 ! 26,549 ! 18,981 ! 45,530 !
935 MAINTENANCE ! 727,718 ! 186,496 ! 914,214 ! 9,909 ! 214 ! 10,123 !
403 DEPRECIATION EXPENSE ! 0 ! 1,176,378 ! 1,176,378 ! 144 ! 8,207 ! 8,171 !
405 AMORTIZATION ! ! 0 ! 0 ! 159,570 ! ! 159,570 !
408 TAXES OTHER THAN INCOME TAXES ! 1,653,527 ! 342,467 ! 1,995,994 ! 11,841 ! 1,216 ! 13,057 !
409 INCOME TAXES ! 0 ! 31,075 ! 31,075 ! (16,740)! ! (16,740)!
410 PROVISION FOR DEFERRED INCOME TAXES ! 0 ! (44,764)! (44,764)! ! 422 ! 422 !
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT! 0 ! 0 ! 0 ! ! ! !
411.5 INVESTMENT TAX CREDIT ! 0 ! 0 ! 0 ! ! ! !
419.0 OTHER INTEREST INCOME ! 0 ! (692)! (692)! ! ! !
421.0 MISCELLANEOUS, NON-OPERATING INCOME BILLED! ! (114)! (114)! ! ! !
426.3 PENALTIES ! 0 ! 1,516 ! 1,516 ! ! ! !
426.5 OTHER DEDUCTIONS ! 0 ! 0 ! 0 ! ! ! !
427 INTEREST ON LONG-TERM DEBT ! ! 1,561,639 ! 1,561,639 ! 16,328 ! 13,233 ! 29,561 !
428 AMORT. DEBT DISCOUNT AND EXPENSE ! ! 36,871 ! 36,871 ! 117 ! 55 ! 172 !
431 OTHER INTEREST EXPENSE ! ! 46,913 ! 46,913 ! 10 ! 428 ! 438 !
! ! ! ! ! ! !
INSTRUCTION: Total cost of service will equal ! ! ! ! ! ! !
for associate and non-associate companies the ! ! ! ! ! ! !
total amount billed under their separate ! ! ! ! ! ! !
analysis of billing schedules. ! ! ! ! ! ! !
! ! ! ! ! ! !
TOTAL EXPENSES = !36,535,297 ! 5,934,006 !42,469,303 ! 613,500 ! 75,942 ! 689,442 !
COMPENSATION FOR USE OF EQUITY CAPITAL = ! ! 446,362 ! 446,362 ! ! 4,190 ! 4,190 !
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES = ! ! ! ! ! ! !
TOTAL COST OF SERVICE = !36,535,297 ! 6,380,368 !42,915,665 ! 613,500 ! 80,132 ! 693,632 !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NON-ASSOCIATION COMPANIES
<CAPTION>
! TOTAL CHARGES FOR SERVICES !
! DIRECT ! INDIRECT ! TOTAL !
DESCRIPTION OF ITEMS ! COST ! COST ! !
<S> <C> <C> <C>
920 SALARIES AND WAGES ! 21,524,965 ! 591,077 !22,116,042 !
921 OFFICE SUPPLIES AND EXPENSES ! 951,884 ! 594,192 ! 1,546,076 !
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT ! ! ! 0 !
923 OUTSIDE SERVICES EMPLOYED ! 1,016,398 ! 258,945 ! 1,275,343 !
924 PROPERTY INSURANCE ! 52,294 ! 225 ! 52,519 !
925 INJURIES AND DAMAGES ! 493,824 ! 8,294 ! 502,118 !
926 EMPLOYEE PENSIONS AND BENEFITS ! 8,148,258 ! 194,913 ! 8,343,171 !
928 REGULATORY COMMISSION EXPENSE ! 0 ! 0 ! 0 !
930.1 GENERAL ADVERTISING EXPENSE ! 0 ! 0 ! 0 !
930.2 MISC. GENERAL EXPENSE ! 702,023 ! 11,265 ! 713,288 !
931 RENTS ! 1,696,727 ! 989,657 ! 2,686,384 !
935 MAINTENANCE ! 737,627 ! 186,710 ! 924,337 !
403 DEPRECIATION EXPENSE ! 144 ! 1,184,405 ! 1,184,549 !
405 AMORTIZATION ! 159,570 ! 0 ! 159,570 !
408 TAXES OTHER THAN INCOME TAXES ! 1,665,368 ! 343,683 ! 2,009,051 !
409 INCOME TAXES ! (16,740)! 31,075 ! 14,335 !
410 PROVISION FOR DEFERRED INCOME TAXES ! ! (44,342)! (44,342) !
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT ! 0 ! 0 ! 0 !
411.5 INVESTMENT TAX CREDIT ! 0 ! 0 ! 0 !
419.0 OTHER INTEREST INCOME ! ! (692)! (692) !
421.0 MISCELLANEOUS, NON-OPERATING INCOME BILLED ! ! (114)! (114) !
426.3 PENALTIES ! ! 1,516 ! 1,516 !
426.5 OTHER DEDUCTIONS ! 0 ! 0 ! 0 !
427 INTEREST ON LONG-TERM DEBT ! 16,328 ! 1,574,872 ! 1,591,200 !
428 AMORT. DEBT DISCOUNT AND EXPENSE ! 117 ! 36,926 ! 37,043 !
431 OTHER INTEREST EXPENSE ! 10 ! 47,341 ! 47,351 !
! ! ! !
INSTRUCTION: Total cost of service will equal ! ! ! !
for associate and non-associate companies the ! ! ! !
total amount billed under their separate ! ! ! !
analysis of billing schedules. ! ! ! !
! ! ! !
TOTAL EXPENSES = ! 37,148,797 ! 6,009,948 !43,158,745 !
COMPENSATION FOR USE OF EQUITY CAPITAL = ! ! 450,552 ! 450,552 !
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES = ! ! ! !
TOTAL COST OF SERVICE = ! 37,148,797 ! 6,460,500 !43,609,297 !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
SCHEDULE XVI
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
! ! !DEPARTMENT OR SERVICE FUNCTION !
! TOTAL ! ! ! ! ! ! !
DESCRIPTION OF ITEMS ! AMOUNT !OVERHEAD! 105 ! 110-111 ! 115 ! 130's ! 210 !
! ! ! ! ! ! ! !
<S> <C> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES !22,116,042 ! ! 271,595 ! 783,524 ! 281,230 !3,013,220 ! 143,728 !
921 OFFICE SUPPLIES AND EXPENSES ! 1,546,076 ! ! 5,813 ! 20,835 ! 4,377 ! 107,497 ! 5,361 !
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT ! 0 ! ! ! ! ! ! !
923 OUTSIDE SERVICES EMPLOYED ! 1,275,343 ! ! ! ! 23,363 ! 47,047 ! 9,314 !
924 PROPERTY INSURANCE ! 52,519 ! ! ! ! ! ! !
925 INJURIES AND DAMAGES ! 502,118 ! ! ! 17 ! ! 20 ! !
926 EMPLOYEE PENSIONS AND BENEFITS ! 8,343,171 ! ! ! ! ! ! 21,418 !
928 REGULATORY COMMISSION EXPENSE ! 0 ! ! ! ! ! ! !
930.1 GENERAL ADVERTISING EXPENSE ! 0 ! ! ! ! ! ! !
930.2 MISC. GENERAL EXPENSE ! 713,288 ! ! 610 ! 1,216 ! 5,656 ! 20,142 ! 3,206 !
931 RENTS ! 2,686,384 ! ! ! 16,305 ! !1,536,305 ! !
935 MAINTENANCE ! 924,337 ! ! 3,452 ! 3,376 ! 295 ! 574,195 ! !
403 DEPRECIATION ! 1,184,549 ! ! 955 ! 4,758 ! 12,715 ! 166,826 ! 955 !
405 AMORTIZATION ! 159,570 ! ! ! ! ! ! !
408 TAXES OTHER THAN INCOME TAXES ! 2,009,051 ! ! 26,868 ! 20,691 ! 22,682 ! 255,571 ! 6,564 !
409 INCOME TAXES ! 14,335 ! ! ! ! ! ! !
410 PROVISION FOR DEFERRED INCOME TAXES ! (44,342)! ! ! ! ! ! !
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT! 0 ! ! ! ! ! ! !
411.5 INVESTMENT TAX CREDIT ! 0 ! ! ! ! ! ! !
419.0 OTHER INTEREST INCOME ! (692)! ! ! ! ! ! !
421.0 MISC. NON-OPERATING INCOME BILLED ! (114)! ! ! ! ! ! !
426.3 PENALTIES ! 1,516 ! ! ! ! ! ! !
426.5 OTHER DEDUCTIONS ! 0 ! ! ! ! ! ! !
427 INTEREST ON LONG-TERM DEBT ! 1,591,200 ! ! ! 4,310 ! 25,138 ! 270,469 ! !
428 AMORT. OF DEBT DISCOUNT AND EXPENSE ! 37,043 ! ! ! 100 ! 594 ! 6,358 ! !
431 OTHER INTEREST EXPENSE ! 47,351 ! ! 96 ! 289 ! 575 ! 6,083 ! 97 !
432 CAPITALIZED INTEREST ! 0 ! ! ! ! ! ! !
! ! ! ! ! ! ! !
INSTRUCTION: Indicate each department or ! ! ! ! ! ! ! !
service function. (See instruction 01-3 General! ! ! ! ! ! ! !
Structure of Accounting System: Uniform System ! ! ! ! ! ! ! !
of Accounts.) ! ! ! ! ! ! ! !
! ! ! ! ! ! ! !
TOTAL EXPENSES = !43,158,745 ! ! 309,389 ! 855,421 ! 376,625 !6,003,733 ! 190,643 !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
SCHEDULE XVI
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
! ! !D E P A R T M E N T O R S E R V I C E F U N C T I O N !
! ! ! ! ! ! ! !
DESCRIPTION OF ITEMS ! 215-220 ! 230, 235 ! 240 ! 260's ! 270 ! 280 ! 305, 310 !
<S> <C> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES ! 497,073 ! 118,454 ! 19,606 !1,898,411 ! 266,760 ! 413,016 ! 237,669 !
921 OFFICE SUPPLIES AND EXPENSES ! 18,403 ! 7,800 ! 25,434 ! 44,743 ! 5,144 ! 11,059 ! 21,495 !
922 ADMIN. EXPENSE TRANSFERRED-CREDIT ! ! ! ! ! ! ! !
923 OUTSIDE SERVICES EMPLOYED ! 54,468 ! 2,783 ! 1,818 ! 33,116 ! ! ! 91,642 !
924 PROPERTY INSURANCE ! ! 52,519 ! ! ! ! ! !
925 INJURIES AND DAMAGES ! (2) ! 502,100 ! ! (17) ! ! (12) ! !
926 EMPLOYEE PENSIONS AND BENEFITS !8,254,147 ! ! ! ! ! ! !
928 REGULATORY COMMISSION EXPENSE ! ! ! ! ! ! ! !
930.1 GENERAL ADVERTISING EXPENSE ! ! ! ! ! ! ! !
930.2 MISC. GENERAL EXPENSE ! 74,840 ! 3,230 ! 4,313 ! 19,208 ! 3,895 ! 45 ! 4,545 !
931 RENTS ! 4,008 ! ! 439,776 ! 13,829 ! ! 4,724 ! 3,837 !
935 MAINTENANCE ! ! ! 293 ! 42,446 ! ! 112 ! 1,011 !
403 DEPRECIATION ! 26,552 ! 7,282 ! 955 ! 78,971 ! 11,031 ! 15,067 ! 5,657 !
405 AMORTIZATION ! ! ! ! ! ! ! !
408 TAXES OTHER THAN INCOME TAXES ! 39,820 ! 9,663 ! 1,602 ! 152,340 ! 22,119 ! 29,927 ! 17,070 !
409 INCOME TAXES ! ! ! ! ! ! ! !
410 PROVISION FOR DEFERRED INCOME TAXES ! ! ! ! ! ! ! !
411 PROVISION FOR DEF. INC. TAXES-CREDIT ! ! ! ! ! ! ! !
411.5 INVESTMENT TAX CREDIT ! ! ! ! ! ! ! !
419.0 OTHER INTEREST INCOME ! ! ! ! ! ! ! !
421.0 MISC. NON-OPERATING INCOME BILLED ! ! ! ! ! ! ! !
426.3 PENALTIES ! ! ! ! ! ! ! !
426.5 OTHER DEDUCTIONS ! ! ! ! ! ! ! !
427 INTEREST ON LONG-TERM DEBT ! 49,217 ! 8,621 ! ! 149,781 ! 21,552 ! 28,757 ! 17,961 !
428 AMORT. OF DEBT DISCOUNT AND EXPENSE ! 1,114 ! 200 ! ! 3,426 ! 500 ! 623 ! 406 !
431 OTHER INTEREST EXPENSE ! 1,084 ! 193 ! 97 ! 3,396 ! 483 ! 637 ! 394 !
432 CAPITALIZED INTEREST ! ! ! ! ! ! ! !
! ! ! ! ! ! ! !
INSTRUCTION: Indicate each department or ! ! ! ! ! ! ! !
service function. (See instruction 01-3 ! ! ! ! ! ! ! !
General Structure of Accounting System: ! ! ! ! ! ! ! !
Uniform System of Accounts.) ! ! ! ! ! ! ! !
! ! ! ! ! ! ! !
TOTAL EXPENSES = !9,020,724 ! 712,845 ! 493,894 !2,439,650 ! 331,484 ! 503,955 ! 397,687 !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
SCHEDULE XVI
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
! ! !D E P A R T M E N T O R S E R V I C E F U N C T I O N !
! ! ! ! ! ! ! !
DESCRIPTION OF ITEMS ! 315-325 ! 360's ! 372 ! 410-418 ! 420-423 ! 426-433 ! 440's !
<S> <C> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES ! 221,502 ! 792,287 ! 1,371,913 !1,138,333 ! 966,037 ! 2,624,462 ! 2,343,292 !
921 OFFICE SUPPLIES AND EXPENSES ! 18,238 ! 27,974 ! 16,659 ! 69,259 ! 55,233 ! 68,593 ! 336,847 !
922 ADMIN. EXPENSE TRANSFERRED-CREDIT ! ! ! ! ! ! ! !
923 OUTSIDE SERVICES EMPLOYED ! 3,253 ! ! 13,144 ! 524,893 ! 2,893 ! 135,427 ! 7,280 !
924 PROPERTY INSURANCE ! ! ! ! ! ! ! !
925 INJURIES AND DAMAGES ! ! ! ! 12 ! (31)! 31 ! !
926 EMPLOYEE PENSIONS AND BENEFITS ! 27,445 ! ! ! ! ! 94 ! !
928 REGULATORY COMMISSION EXPENSE ! ! ! ! ! ! ! !
930.1 GENERAL ADVERTISING EXPENSE ! ! ! ! ! ! ! !
930.2 MISC. GENERAL EXPENSE ! 3,820 ! 6,313 ! 3,956 ! 332,262 ! 7,513 ! 197,414 ! 949 !
931 RENTS ! 1,990 ! 429 ! 2,523 ! 15,615 ! 6,904 ! 453,535 ! 43,951 !
935 MAINTENANCE ! 100 ! 1,823 ! ! 2,669 ! 5,747 ! 11,480 ! 31,697 !
403 DEPRECIATION ! 19,548 ! 47,111 ! 24,257 ! 15,492 ! 45,384 ! 142,600 ! 147,252 !
405 AMORTIZATION ! ! ! ! ! ! 159,570 ! !
408 TAXES OTHER THAN INCOME TAXES ! 19,141 ! 65,748 ! 110,900 ! 65,399 ! 78,827 ! 233,540 ! 209,021 !
409 INCOME TAXES ! ! ! ! ! ! 14,335 ! !
410 PROVISION FOR DEFERRED INCOME TAXES ! ! ! ! ! ! (44,342) ! !
411 PROV. FOR DEF. INCOME TAXES-CREDIT ! ! ! ! ! ! ! !
411.5 INVESTMENT TAX CREDIT ! ! ! ! ! ! ! !
419.0 OTHER INTEREST INCOME ! ! ! ! ! ! (692) ! !
421.0 MISC. NON-OPERATING INCOME BILLED ! ! ! ! ! ! (114) ! !
426.3 PENALTIES ! ! ! ! ! ! 1,516 ! !
426.5 OTHER DEDUCTIONS ! ! ! ! ! ! ! !
427 INTEREST ON LONG-TERM DEBT ! 24,418 ! 80,094 ! ! ! 78,652 ! 242,812 ! 305,679 !
428 AMORT. OF DEBT DISCOUNT AND EXPENSE ! 588 ! 1,886 ! ! ! 1,874 ! 5,681 ! 7,098 !
431 OTHER INTEREST EXPENSE ! 565 ! 1,814 ! 2,427 ! 1,432 ! 1,767 ! 10,163 ! 6,854 !
432 CAPITALIZED INTEREST ! ! ! ! ! ! ! !
! ! ! ! ! ! ! !
INSTRUCTION: Indicate each department or ! ! ! ! ! ! ! !
service function. (See instruction 01-3 ! ! ! ! ! ! ! !
General Structure of Accounting System: ! ! ! ! ! ! ! !
Uniform System of Accounts.) ! ! ! ! ! ! ! !
! ! ! ! ! ! ! !
TOTAL EXPENSES = ! 340,608 ! 1,025,479 ! 1,545,779 !2,165,366 ! 1,250,800 ! 4,256,105 ! 3,439,920 !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
SCHEDULE XVI
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
! ! !D E P A R T M E N T O R S E R V I C E F U N C T I O N !
! ! ! ! ! ! ! !
DESCRIPTION OF ITEMS ! 450's ! 460 ! 560 ! 565 ! 570's ! 581-585 ! 586 !
! ! ! ! ! ! ! !
<S> <C> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES ! 575,081 ! 146,333 ! 278,414 ! 81,704 ! 1,918,878 ! 1,312,392 ! 401,128 !
921 OFFICE SUPPLIES AND EXPENSES ! 559,121 ! 4,522 ! 9,665 ! 24,461 ! 31,686 ! 38,948 ! 10,909 !
922 ADMIN. EXPENSE TRANSFERRED-CREDIT ! ! ! ! ! ! ! !
923 OUTSIDE SERVICES EMPLOYED ! 252,227 ! ! ! 15,653 ! ! 57,022 ! !
924 PROPERTY INSURANCE ! ! ! ! ! ! ! !
925 INJURIES AND DAMAGES ! ! ! ! ! ! ! !
926 EMPLOYEE PENSIONS AND BENEFITS ! 40,067 ! ! ! ! ! ! !
928 REGULATORY COMMISSION EXPENSE ! ! ! ! ! ! ! !
930.1 GENERAL ADVERTISING EXPENSE ! ! ! ! ! ! ! !
930.2 MISC. GENERAL EXPENSE ! ! ! 191 ! ! 6,918 ! 7,109 ! 5,937 !
931 RENTS ! 93,184 ! ! 8,093 ! 9,356 ! 6,219 ! 21,642 ! 4,159 !
935 MAINTENANCE ! 186,203 ! 305 ! 4,286 ! ! 7,453 ! 46,337 ! 1,057 !
403 DEPRECIATION ! 61,815 ! 4,819 ! 2,299 ! 1,953 ! 87,331 ! 228,894 ! 24,070 !
405 AMORTIZATION ! ! ! ! ! ! ! !
408 TAXES OTHER THAN INCOME TAXES ! 295,958 ! 10,272 ! 15,462 ! 6,694 ! 152,187 ! 108,288 ! 32,697 !
409 INCOME TAXES ! ! ! ! ! ! ! !
410 PROVISION FOR DEFERRED INCOME TAXES ! ! ! ! ! ! ! !
411 PROV. FOR DEF. INCOME TAXES-CREDIT ! ! ! ! ! ! ! !
411.5 INVESTMENT TAX CREDIT ! ! ! ! ! ! ! !
419.0 OTHER INTEREST INCOME ! ! ! ! ! ! ! !
421.0 MISC. NON-OPERATING INCOME BILLED ! ! ! ! ! ! ! !
426.3 PENALTIES ! ! ! ! ! ! ! !
426.5 OTHER DEDUCTIONS ! ! ! ! ! ! ! !
427 INTEREST ON LONG-TERM DEBT ! 76,866 ! 8,621 ! ! ! 149,399 ! 17,597 ! 31,256 !
428 AMORT. OF DEBT DISCOUNT AND EXPENSE ! 1,729 ! 200 ! ! ! 3,554 ! 403 ! 709 !
431 OTHER INTEREST EXPENSE ! 1,725 ! 193 ! 290 ! 193 ! 3,368 ! 2,468 ! 668 !
432 CAPITALIZED INTEREST ! ! ! ! ! ! ! !
! ! ! ! ! ! ! !
INSTRUCTION: Indicate each department or ! ! ! ! ! ! ! !
service function. (See instruction 01-3 ! ! ! ! ! ! ! !
General Structure of Accounting System: ! ! ! ! ! ! ! !
Uniform System of Accounts) ! ! ! ! ! ! ! !
! ! ! ! ! ! ! !
TOTAL EXPENSES = !2,143,976 ! 175,265 ! 318,700 ! 140,014 ! 2,366,993 ! 1,841,100 ! 512,590 !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
____________________________________________________________________________________
! DEPARTMENTAL SALARY EXPENSE ! NUMBER !
NAME OF DEPARTMENT ! ! INCLUDED IN AMOUNTS BILLED TO !PERSONNEL!
Indicate each department or ! TOTAL !PARENT ! OTHER ! NON ! END OF !
service function ! AMOUNT !COMPANY! ASSOCIATES !ASSOCIATES! YEAR !
! ! ! ! ! !
<S> <C> <C> <C> <C> <C>
105 Executive Admin. & ! ! ! ! ! !
& Support ! 271,595 ! ! 271,595 ! ! 1 !
110-111 Executive Admin. & ! ! ! ! ! !
& Support ! 783,524 ! 12,555! 770,512 ! 457 ! 3 !
115 Internal Audit ! 281,230 ! 2,884! 278,346 ! ! 6 !
130's Information Systems ! 3,013,220 ! 15,476! 2,978,490 ! 19,254 ! 62 !
210 Admin. Support - ! ! ! ! ! !
Corporate ! 143,728 ! 6,824! 136,904 ! ! 1 !
215-220 Human Resources/ ! ! ! ! ! !
Emp. Benefits ! 497,073 ! 5,578! 491,495 ! ! 12 !
230 Safety and ! ! ! ! ! !
Occupational ! ! ! ! ! !
Health ! 118,454 ! 964! 117,490 ! ! 2 !
240 Office Services - ! ! ! ! ! !
Boston ! 19,606 ! 106! 19,500 ! ! 1 !
260's Corporate Planning ! ! ! ! ! !
/C&LM/PWR Mgmt. ! 1,898,411 ! ! 1,874,954 ! 23,457 ! 35 !
270 Rate Research ! 266,760 ! ! 266,760 ! ! 5 !
280 Strategic Studies ! 413,016 ! ! 412,862 ! 154 ! 7 !
305,310 Executive Admin. & ! ! ! ! ! !
Support/Corp.Comm.! 237,669 ! 3,103! 234,566 ! ! 5 !
315-325 Corporate___________! ! ! ! ! !
Communications ! 221,502 ! 1,971! 219,531 ! ! 5 !
360's Matls. Mgmt./Stores/! ! ! ! ! !
Purchasing ! 792,287 ! ! 792,287 ! ! 18 !
372_ System Operations ! 1,371,913 ! ! 1,371,913 ! ! 26 !
410-417 Financial/Treasury ! ! ! ! ! !
Services ! 1,138,333 ! 17,278! 1,105,711 ! 15,344 ! 15 !
420-423 Rate Admin/Load ! ! ! ! ! !
Research ! 966,037 ! 639! 963,051 ! 2,347 ! 18 !
426-433 Comptroller/Acctng. ! 2,624,462 ! 54,753! 2,495,334 ! 74,375 ! 58 !
440's Customer Service ! 2,343,292 ! ! 2,343,122 ! 170 ! 70 !
450's Bldg&Facilities-WB ! 575,081 ! 2,811! 569,902 ! 2,368 ! 17 !
460 Rates & Service ! ! ! ! ! !
Admin. ! 146,333 ! ! 146,333 ! ! 2 !
560 Eng & Oper Admin ! ! ! ! ! !
& Support ! 278,414 ! ! 278,414 ! ! 3 !
565 Central Meter Test ! 81,704 ! ! 81,513 ! 191 ! 2 !
570's Engineering ! 1,918,878 ! ! 1,914,577 ! 4,301 ! 34 !
581-585 S&C/Substation/ ! ! ! ! ! !
Radio/Microwave/ ! ! ! ! ! !
Stds. ! 1,312,392 ! ! 1,311,003 ! 1,389 ! 25 !
586 Environmental Eng. ! 401,128 ! ! 401,128 ! ! 9 !
TOTAL ! 22,116,042 !124,942! 21,847,293 ! 143,807 ! 442 !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
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 $25,000, 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.
<CAPTION>
___________________________________________________________________________________
! ! RELATIONSHIP ! !
! !"A"-ASSOCIATE ! !
! ! "NA"-NON ! !
FROM WHOM PURCHASED ! ADDRESS ! ASSOCIATE ! !
Outside Services - Legal ! ! ! !
! ! ! !
McDermott, Will and Emery ! 75 State Street ! NA !439,018!
<S> <S> <S> <C>
! Boston, MA 02109 ! ! !
Various (4) ! ! NA ! 8,140!
! ! !447,158!
! ! ! !
Outside Services - Accounting! ! ! !
! ! ! !
Coopers and Lybrand ! One International Place ! NA ! 66,646!
! Boston, MA 02107 ! ! !
! ! ! !
! ! ! !
Outside Services - E.D.P. ! ! ! !
! ! ! !
Computer Associates ! P.O. Box 7247 ! NA ! 34,734!
International ! Philadelphia, PA 19170 ! ! !
! ! ! !
Cyborg Systems, Inc. ! P.O. Box 41876 ! NA ! 31,300!
! Chicago, IL 60641 ! ! !
! ! ! !
Various (7) ! ! NA ! 24,781!
! ! ! 90,815!
! ! ! !
Outside Services - Building ! ! ! !
and Maintenance ! ! ! !
! ! ! !
CCU Commercial Services ! 19 Norfolk Avenue ! NA ! 76,450!
! South Easton, MA 02375 ! ! !
! ! ! !
First Security Services ! P.O. Box 4757 ! NA !118,890!
! Boston, MA 02212 ! ! !
! ! ! !
Various (19) ! ! NA ! 52,658!
! ! !247,998!
! ! ! !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
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 $25,000, 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.
<CAPTION>
_____________________________________________________________________________________
! ! RELATIONSHIP ! !
! !"A"-ASSOCIATE ! !
! ! "NA"-NON ! !
FROM WHOM PURCHASED ! ADDRESS ! ASSOCIATE ! !
<S> <S> <S> <C>
! ! ! !
Outside Services - Other ! ! ! !
! ! ! !
Norfolk Data, Inc. ! 1200 Turnpike Street ! NA ! 29,051!
! Canton, MA 02021 ! ! !
! ! ! !
Cambridge Reports, Inc. ! 675 Massachusetts Avenue ! NA ! 86,480!
! Cambridge, MA 02139 ! ! !
! ! ! !
J. Flanaghan and Co. ! 26 Colonial Avenue ! NA ! 42,000!
! Waltham, MA 02154 ! ! !
! ! ! !
DRI McGraw-Hill ! P.O. Box 50210 ! NA ! 26,272!
! Woburn, MA 01815 ! ! !
! ! ! !
! ! ! !
CFS Compensation Consultants ! 19 Pequot Road ! NA ! 35,522!
! Marblehead, MA 01945 ! ! !
! ! ! !
Media Concepts Corporation ! 25 North Main Street ! NA ! 40,260!
! Assonet, MA 02702-1136 ! ! !
! ! ! !
Various (33) ! ! NA ! 163,141!
! ! ! 422,726!
! ! ! !
Total Outside Services ! ! ! !
Employed ! ! !1,275,343!
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
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.
<CAPTION>
__________________________________________________________________________________
D E S C R I P T I O N ! AMOUNT !
! !
<S> <C>
Dental Plan (9260-02) ! 145,150 !
! !
Employee Education Reimbursement (9260-03) ! 62,357 !
! !
Employee Publications (9260-04) ! 27,051 !
! !
Life Insurance (9260-12 to 9260-19) ! 224,056 !
! !
Group Health including FAS 106 (9260-10/9260-22 to 9260-39) !3,809,991 !
! !
Company Match/Employee Savings Plan (9260-40 to 9260-43) ! 449,982 !
! !
Pension Plan (9260-51 to 9260-58) !3,448,256 !
! !
Miscellaneous (Recreations, Clubs, Service Recognition, ! 176,328 !
Employee Exams) ! !
! !
! !
TOTAL !8,343,171 !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
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.
<CAPTION>
__________________________________________________________________________________
D E S C R I P T I O N !NAME OF PAYEE! AMOUNT !
! ! !
<S> <C> <C>
ACCOUNT 930.1 - GENERAL ADVERTISING EXPENSE ! ! !
! ! !
NONE ! ! !
! ! !
TOTAL ! ! - 0 - !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
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. 441 (b)(2)
shall be separately classified.
<CAPTION>
__________________________________________________________________________________
D E S C R I P T I O N ! AMOUNT !
<S> <C> !
Industry Association Dues ! 10,441 !
! !
SEC Filing Fees ! !
! !
Corporate and Fiscal Expenses ! 16,669 !
! !
Transfer Agent Fees and Expenses ! 129,000 !
! !
Employee Training and Seminars ! 162,180 !
! !
Printing and Distribution of Quarterly and Annual Reports ! 155,731 !
! !
Miscellaneous Including Write Off of EUA Power Receivable ! 239,267 !
$189,557 ! !
! !
TOTAL ! 713,288 !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
RENTS
ACCOUNT 931
INSTRUCTIONS: Provide a listing of the amount included in Account 931,
"Rents", classifying such expenses by major groupings of
property, as defined in the account definition of the
Uniform System of Accounts.
<CAPTION>
__________________________________________________________________________________
T Y P E O F P R O P E R T Y ! AMOUNT!
! !
<S> <C>
Building Rents: ! !
Boston MA, Office Facility ! 369,899 !
! !
Brockton MA, Office Facility ! 17,844 !
! !
Lincoln RI, Office Facility ! 473,646 !
! !
Total Building Rents ! 861,389 !
! !
Data Processing and Other Equipment Rents ! 1,824,995 !
! !
! !
TOTAL ! 2,686,384 !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
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.
<CAPTION>
__________________________________________________________________________________
K I N D O F T A X ! AMOUNT !
! !
<S> <C>
Other Than U.S. Government Tax: ! !
! !
Massachusetts Unemployment Tax ! 161,997 !
! !
Rhode Island Unemployment Tax ! 16,793 !
! !
Job Development Tax (Massachusetts and Rhode Island) ! 5,141 !
! !
Property Tax ! 248,346 !
! !
Health Insurance Tax - Massachusetts ! 6,946 !
! !
Miscellaneous ! 47,535 !
! 486,758 !
! !
U.S. Government Tax: ! !
! !
FICA !1,499,455 !
! !
Federal Unemployment Tax ! 22,838 !
!1,522,293 !
! !
! !
TOTAL !2,009,051 !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
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.
<CAPTION>
__________________________________________________________________________________
NAME OF RECIPIENT ! PURPOSE OF DONATION ! AMOUNT !
! ! !
<S> <C> <C>
ACCOUNT 426.1 - DONATIONS ! ! !
! ! !
NONE ! ! !
! ! !
! ! !
TOTAL ! - 0 - !
</TABLE>
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
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.
<CAPTION>
__________________________________________________________________________________
DESCRIPTION ! NAME OF PAYEE ! AMOUNT!
! ! !
ACCOUNT 426.5 - Other Deductions ! ! !
! ! !
<S> <C> <C>
NONE ! ! !
TOTAL ! - 0 - !
*NEW PAGE*
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
SCHEDULE XVIII
NOTES TO STATEMENT OF INCOME
INSTRUCTIONS: The space below is provided for important notes regarding the
statement of income or any account thereof. Furnish
particulars as to any significant increase 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 page 19.
*NEW PAGE*
ANNUAL REPORT OF EUA Service Corporation
ORGANIZATION CHART
ANNUAL REPORT OF EUA Service Corporation
ORGANIZATION CHART
CHAIRMAN & CEO
!
!
!
! ! ! !
! ! ! !
! ! ! !
! ! ! !
SPECIAL PROJECTS ! INTERNAL AUDIT TREASURER
DIRECTOR ! MANAGER
!
!
!
!
!
! !
! !
! !
EXECUTIVE VICE-PRESIDENT PRESIDENT & C.O.O.
Engineering - Director Executive Vice President
Purchasing, Mat. Mgmt. Customer Service - Director
& Stores - Director Bldg. & Facilities - General Manager
System Operations - Super. Information Services - Director
Resource Management - Dir. Corp. Communications - Vice President
Substation & Communication - Rates - Director
Superintendent Vice-President & Comptroller
Vice-President & Secretary
Employee Benefits - Manager
Human Resources - Manager
Safety/Occ. Health - Manager
Insurance - Manager
*NEW PAGE*
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
METHODS OF ALLOCATION
All costs which are not directly charged to associated companies are
allocated based on departmental allocation factors outlined in the attached
schedule. This schedule includes a description of the basis as well as the
1993 percentages used in billing indirect costs to each associated company.
The allocation bases are reviewed annually and the corresponding percentages
are updated annually. Exhibit B enclosed.
*NEW PAGE*
</TABLE>
<TABLE>
<CAPTION> EXHIBIT B
EUA SERVICE CORPORATION - INTERCOMPANY BILLING - RESPONSIBILITY CENTER ALLOCATION FACTORS 1993
DEPT. RESPONSIBILITY CENTER BASIS TOTAL BVE EUA MECO
<S> <C> <C> <C> <C>
105 Executive Admin. & Support Avg. of Engineering,Purchasing,260,264,265,267 100.00% 17.30% 0.00% 36.77%
110 Executive Admin. & Support Average of Employees, Total Costs, Customers,
Revenues (Net of Interco. Transactions)
and Gross Utility Plant 100.00% 25.23% 1.25% 12.67%
111 Admin. & Support - W.Bridg. Average of R/Cs-131,310-325,441, & 460 100.00% 25.00% 1.25% 13.01%
115 Internal Audit Average of Total Assets and Customers 100.00% 20.75% 1.25% 21.56%
131 Systems and Data Processing Computer Utilization Report 100.00% 23.44% 1.25% 16.50%
Also includes R/C :
132-D.P. Info. Systems
133-D.P. Operations
134-Tech. Support
210 Corporate Average of Employees & Total Service Billings 100.00% 23.05% 1.25% 20.51%
Also includes R/C : (with nominal amount allocated to Cogenex, EUA,
235-Division Insurance and Ocean State)
220 Employee Benefits Average of Employees & Total Service Billings 100.00% 22.55% 1.25% 20.06%
Also includes R/C :
215-Human Resources
217-Train. & Development
240-Office Services Bosto Allocated to departs. located in Boston based on
number of employees. Billed to operating Co's
on departmental factors.
230 Safety and Occupational Healt Average of Employees & Total Billings 100.00% 22.55% 1.25% 20.06%
260 Corp. Planning Exec. & Suppor KWH SALES 100.00% 11.63% 0.00% 60.10%
264 Power Management Purchase Power and Net Power Generated 100.00% 0.00% 0.00% 95.75%
265 Resource Planning Avg of Cons. & Load, Econ. & Load Forcasting and 100.00% 2.91% 0.00% 87.90%
266 Cons. & Load Mgmt. 100 % Montaup 100.00% 0.00% 0.00% 100.00%
267 Economic & Load Forecasting KWH Sales 100.00% 11.63% 0.00% 60.10%
268 System Planning Purchase Power and Net Power Generated 100.00% 0.00% 0.00% 95.75%
280 Strategic Studies Gross Revenues 100.00% 14.64% 0.00% 38.40%
310 Corp. Comm. - Admin. & Suppor Average of Employees,Total Service Billings and
Customers 100.00% 25.49% 1.25% 10.00%
Also includes R/C :
305-Corp. Comm. Exec.
315 Advertising Number of Customers (Excluding Non-Core) 100.00% 28.79% 0.00% 0.00%
320 Employee Communications Number of Employees & Total Service Billings 100.00% 22.55% 1.25% 20.06%
325 Community Relations Number of Customers with a nominal amount to MECO 100.00% 27.36% 0.00% 5.00%
362 Purchasing Purchase Orders Processed (Excluding Non-Core) 100.00% 17.09% 0.00% 35.69%
Also includes R/C :
361-Purch.& Matl. Mgtmt
363 Materials Management Materials and Supplies Inventory Balance 100.00% 16.93% 0.00% 31.81%
Also includes R/C :
364-System Stores
372 System Operations SCADA Utilization 100.00% 23.00% 0.00% 31.00%
410 Financial Admin. and Support Average of Employees, Customers, Revenues
Also includes RC 418 Legal (Net of Intercompany Transactions) and Gross
Utility Plant Inc. CWIP 100.00% 24.41% 1.25% 12.04%
414 Shareholders Services Direct Costs - S.E.C Method 100.00% 20.57% 1.25% 30.99%
415 Investor Relations Direct Costs - S.E.C Method 100.00% 20.57% 1.25% 30.99%
</TABLE>
*NEW PAGE*
<TABLE>
<CAPTION> EXHIBIT B
EUA SERVICE CORPORATION - INTERCOMPANY BILLING - RESPONSIBILITY CENTER ALLOCATION FACTORS 1993
EUA EUA
DEPT. RESPONSIBILITY CENTER BASIS EUAPC EECO COGENEX OCEAN ST NEWPORT
<S> <C> <C> <C> <C> <C>
105 Executive Admin. & Support Avg. of Engineering,Purchasing,260,264,265,267 0.00% 36.74% 0.00% 0.00% 9.19%
110 Executive Admin. & Support Average of Employees, Total Costs, Customers,
Revenues (Net of Interco. Transactions)
and Gross Utility Plant 0.00% 47.01% 1.75% 0.50% 11.59%
111 Admin. & Support - W.Bridg. Average of R/Cs-131,310-325,441, & 460 0.00% 48.55% 1.05% 0.21% 10.94%
115 Internal Audit Average of Total Assets and Customers 0.00% 42.46% 4.80% 0.50% 8.68%
131 Systems and Data Processing Computer Utilization Report 0.00% 46.00% 1.75% 0.50% 10.56%
Also includes R/C :
132-D.P. Info. Systems
133-D.P. Operations
134-Tech. Support
210 Corporate Average of Employees & Total Service Billings 0.00% 41.69% 1.75% 0.50% 11.25%
Also includes R/C : (with nominal amount allocated to Cogenex, EUA,
235-Division Insurance and Ocean State)
220 Employee Benefits Average of Employees & Total Service Billings 0.00% 40.77% 3.87% 0.50% 11.00%
Also includes R/C :
215-Human Resources
217-Train. & Development
240-Office Services Bosto Allocated to departs. located in Boston based on
number of employees. Billed to operating Co's
on departmental factors.
230 Safety and Occupational Healt Average of Employees & Total Billings 0.00% 40.77% 3.87% 0.50% 11.00%
260 Corp. Planning Exec. & Suppor KWH SALES 0.00% 23.10% 0.00% 0.00% 5.16%
264 Power Management Purchase Power and Net Power Generated 0.00% 0.00% 0.00% 0.00% 4.25%
265 Resource Planning Avg of Cons. & Load, Econ. & Load Forcasting and 0.00% 5.78% 0.00% 0.00% 3.42%
266 Cons. & Load Mgmt. 100 % Montaup 0.00% 0.00% 0.00% 0.00% 0.00%
267 Economic & Load Forecasting KWH Sales 0.00% 23.10% 0.00% 0.00% 5.16%
268 System Planning Purchase Power and Net Power Generated 0.00% 0.00% 0.00% 0.00% 4.25%
280 Strategic Studies Gross Revenues 0.00% 26.70% 12.00% 2.00% 6.26%
310 Corp. Comm. - Admin. & Suppor Average of Employees,Total Service Billings and
Customers 0.00% 50.15% 1.75% 0.50% 10.86%
Also includes R/C :
305-Corp. Comm. Exec.
315 Advertising Number of Customers (Excluding Non-Core) 0.00% 60.33% 0.00% 0.00% 10.88%
320 Employee Communications Number of Employees & Total Service Billings 0.00% 40.77% 3.87% 0.50% 11.00%
325 Community Relations Number of Customers with a nominal amount to MECO 0.00% 57.31% 0.00% 0.00% 10.33%
362 Purchasing Purchase Orders Processed (Excluding Non-Core) 0.00% 35.11% 0.00% 0.00% 12.11%
Also includes R/C :
361-Purch.& Matl. Mgtmt
363 Materials Management Materials and Supplies Inventory Balance 0.00% 37.31% 0.00% 0.00% 13.95%
Also includes R/C :
364-System Stores
372 System Operations SCADA Utilization 0.00% 46.00% 0.00% 0.00% 0.00%
410 Financial Admin. and Support Average of Employees, Customers, Revenues
Also includes RC 418 Legal (Net of Intercompany Transactions) and Gross
Utility Plant Inc. CWIP 0.00% 45.62% 5.04% 0.50% 11.14%
414 Shareholders Services Direct Costs - S.E.C Method 0.00% 31.05% 1.75% 0.54% 13.85%
415 Investor Relations Direct Costs - S.E.C Method 0.00% 31.05% 1.75% 0.54% 13.85%
</TABLE>
*NEW PAGE*
<TABLE>
<CAPTION>
EXHIBIT B
EUA SERVICE CORPORATION - INTERCOMPANY BILLING - RESPONSIBILITY CENTER ALLOCATION FACTORS 1993
DEPT. RESPONSIBILITY CENTER BASIS TOTAL BVE EUA MECO
<S> <C> <C> <C> <C>
416 Treasury and Administration Average of Revenues (Net of Intercompany
Also includes R/C : Transactions and Total Assets) 100.00% 19.00% 0.00% 28.52%
417-Treasury
270 Rate Design Number Of Rate Schedules and Net KWH Sales 100.00% 28.87% 0.00% 17.54%
420 Revenue Requirements Gross Revenues less Fuel Costs & Pur. Power 100.00% 16.68% 0.00% 51.68%
421 Rate Administration & Support Average of Depts. 270, 420, 422 & 423 100.00% 19.85% 0.00% 40.13%
422 Load Research Wtd. Avg. of Load Research Meters and Rate Schs. 100.00% 16.67% 0.00% 50.00%
423 Rate Administration Fuel, Pur. Power, RISE, Mass Save and C&LM Costs 100.00% 17.18% 0.00% 41.32%
426 Comptroller Average of Revenues (Net of Intercompany
Transactions), Total Assets and Number of Empl.
Also includes R/C : and Total Service Billing 100.00% 20.16% 1.25% 25.16%
427-Acctg. Systems
428-Serv. Rpting. & Sp.
Proj.
429-Admin. & Support WBW
432-Wholesale & Retail
433 Plant Accounting Gross Utility Plant in Serv. (excl. Jointly Owned)
100.00% 24.75% 0.00% 19.45%
441 Customer Accounting * Number of Customers 100.00% 28.79% 0.00% 0.00%
* Also includes R/C :
442-Customer Service
443-Customer Records
444-Cust. Assist & Info.
451 Building and Facilities Allocated to departments located in W. Bridgewate 100.00% 23.01% 1.25% 21.72%
Also includes R/C : based on square feet of area occupied. Billed
452-WBW Facility O&M to operating companies based on departmental
453-Gen. Office Services allocation factors.
454-Security
460 Rates and Service - Admin. Average of Depts. 270, 420, 422 & 423 100.00% 19.86% 0.00% 40.13%
560 Eng. & Oper. Admin. & Support Avg. of T & D Lines, Cust., Grs. Util. Plt. and KWH
Sales (Net of Interco.Trans.) (Excl.Non-Core) 100.00% 23.16% 0.00% 14.53%
565 Central Meter Testing Number of Meters 100.00% 30.34% 0.00% 0.00%
571 Engineering Average of Gross Utility Plant, T & D Lines and KWH
Also includes R/C : sales (Net of Intercompany Transactions) 100.00% 21.27% 0.00% 19.37%
572-Elect. Engineering
574-Mech. & Civil Engin.
575-Engin. Services
576-Engin. Develop. Applic.
581 S & C Admin. & Support Average of Responsibility Centers 582,583,and 584 100.00% 31.78% 0.00% 25.58%
582 Substation No. of 115KV and 345KV Line Terminals & Transform 100.00% 47.90% 0.00% 15.50%
583 Radio/Microwave Number of Radios 100.00% 27.60% 0.00% 10.00%
584 Electronics SCADA Utilization Including Newport 100.00% 22.00% 0.00% 30.00%
585 Standards Average of Gross Utility Plant, T & D Lines and KWH
Also includes R/C : sales (Net of Intercompany Trans.) Nominal Amt 100.00% 25.06% 0.00% 5.00%
573-Division Engin.
586 Environmental Engineering Gross Utility Plant (Less Jointly-Owned) 100.00% 25.19% 0.00% 19.80%
</TABLE>
*NEW PAGE*
<TABLE>
<CAPTION>
EXHIBIT B
EUA SERVICE CORPORATION - INTERCOMPANY BILLING - RESPONSIBILITY CENTER ALLOCATION FACTORS 1993
EUA EUA
DEPT. RESPONSIBILITY CENTER BASIS EUAPC EECO COGENEX OCEAN ST NEWPORT
<S> <C> <C> <C> <C> <C>
416 Treasury and Administration Average of Revenues (Net of Intercompany
Also includes R/C : Transactions and Total Assets) 0.00% 35.24% 7.86% 0.50% 8.88%
417-Treasury
270 Rate Design Number Of Rate Schedules and Net KWH Sales 0.00% 34.09% 0.00% 0.00% 19.50%
420 Revenue Requirements Gross Revenues less Fuel Costs & Pur. Power 0.00% 25.04% 0.00% 0.00% 6.60%
421 Rate Administration & Support Average of Depts. 270, 420, 422 & 423 0.00% 27.42% 0.00% 0.00% 12.59%
422 Load Research Wtd. Avg. of Load Research Meters and Rate Schs. 0.00% 16.67% 0.00% 0.00% 16.66%
423 Rate Administration Fuel, Pur. Power, RISE, Mass Save and C&LM Costs 0.00% 33.90% 0.00% 0.00% 7.60%
426 Comptroller Average of Revenues (Net of Intercompany
Transactions), Total Assets and Number of Empl.
Also includes R/C : and Total Service Billing 0.00% 37.02% 6.32% 0.50% 9.59%
427-Acctg. Systems
428-Serv. Rpting. & Sp.
Proj.
429-Admin. & Support WBW
432-Wholesale & Retail
433 Plant Accounting Gross Utility Plant in Serv. (excl. Jointly Owned)
0.00% 40.64% 1.75% 0.00% 13.41%
441 Customer Accounting * Number of Customers 0.00% 60.33% 0.00% 0.00% 10.88%
* Also includes R/C :
442-Customer Service
443-Customer Records
444-Cust. Assist & Info.
451 Building and Facilities Allocated to departments located in W. Bridgewate 0.00% 41.13% 1.75% 0.50% 10.64%
Also includes R/C : based on square feet of area occupied. Billed
452-WBW Facility O&M to operating companies based on departmental
453-Gen. Office Services allocation factors.
454-Security
460 Rates and Service - Admin. Average of Depts. 270, 420, 422 & 423 0.00% 27.42% 0.00% 0.00% 12.59%
560 Eng. & Oper. Admin. & Support Avg. of T & D Lines, Cust., Grs. Util. Plt. and KWH
Sales (Net of Interco.Trans.) (Excl.Non-Core) 0.00% 52.01% 0.00% 0.00% 10.30%
565 Central Meter Testing Number of Meters 0.00% 69.66% 0.00% 0.00% 0.00%
571 Engineering Average of Gross Utility Plant, T & D Lines and KWH
Also includes R/C : sales (Net of Intercompany Transactions) 0.00% 49.24% 0.00% 0.00% 10.11%
572-Elect. Engineering
574-Mech. & Civil Engin.
575-Engin. Services
576-Engin. Develop. Applic.
581 S & C Admin. & Support Average of Responsibility Centers 582,583,and 584 0.00% 34.07% 0.00% 0.00% 8.57%
582 Substation No. of 115KV and 345KV Line Terminals & Transform 0.00% 28.80% 0.00% 0.00% 7.80%
583 Radio/Microwave Number of Radios 0.00% 49.10% 0.00% 0.00% 13.30%
584 Electronics SCADA Utilization Including Newport 0.00% 45.00% 0.00% 0.00% 3.00%
585 Standards Average of Gross Utility Plant, T & D Lines and KWH
Also includes R/C : sales (Net of Intercompany Trans.) Nominal Amt 0.00% 58.02% 0.00% 0.00% 11.91%
573-Division Engin.
586 Environmental Engineering Gross Utility Plant (Less Jointly-Owned) 0.00% 41.36% 0.00% 0.00% 13.65%
</TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
On April 1, 1987, Eastern Utilities Associates was authorized to make
a $5,000,000 Capital Contribution to EUA Service Corporation in accordance
with Post-Effective Amendment No. 5 to U-13-1 under the Public Utility
Holding Company Act of 1935.
Amendment No. 5 permits EUA Service Corporation to bill on a monthly
basis a return on the Service Company's Total Equity Capitalization. EUA
Service Corporation is allowed to bill compensation for use of capital based
on the weighted average return on common equity granted to the operating
subsidiaries of Eastern Utilities Associates by the Massachusetts Department
of Public Utilities, the Federal Energy Regulatory Commission and the
Department of Public Utilities and Carriers Public Utilities Commission of
Rhode Island.
The following is a summary of the Compensation For Use of Capital
billed effective January 1, 1993:
Blackstone Valley Electric Company $ 99,141
Montaup Electric Company 101,024
EUA Power Corporation 4,190
Eastern Edison Company 185,597
Eastern Utilities Associates 1,937
EUA Cogenex Corporation 7,660
EUA Ocean State Corporation 1,487
Newport Electric Corporation 49,516
$450,552
________
*NEW PAGE*
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1993
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.
EUA Service Corporation
(Name of Reporting Company)
By: /s/ Richard M. Burns
(Signature of Signing Officer)
Richard M. Burns, Vice President & Comptroller
(Printed Name and Title of Signing Officer)
Date: April 29, 1994
*NEW PAGE*
Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1993 and Ending December 31, 1993
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
EUA Service Corporation
(Exact Name of Reporting Company)
A Subsidiary SERVICE COMPANY
("Mutual" or "Subsidiary")
*NEW PAGE*
