Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1994 and Ending December 31, 1994
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.
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Schedule or Page
Description of Schedules and Accounts Acct. No. No.
COMPARATIVE BALANCE SHEET Schedule I 4-5
SERVICE COMPANY PROPERTY Schedule II 6-7
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY Schedule III 8
INVESTMENTS Schedule IV 9
ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES Schedule V 10
FUEL STOCK EXPENSE 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 XVII 24-27
DEPARTMENTAL ANALYSIS OF SALARIES Account 920 28
OUTSIDE SERVICES EMPLOYED Account 923 29-29A
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
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
<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,
1994
CURRENT PRIOR
SERVICE COMPANY PROPERTY
<S> <C> <C> <C> <C>
101 Service company property (Schedule II) 30,218,908 30,657,575
101.1 Property under capital leases - Net 606,160 1,498,410
Page 19C Footnote D
107 Construction work in progress (Schedule II) 106,964 171,026
Total Property 30,932,032 32,327,011
111 & Less accumulated provision for depreciation
108 and amortization of service company
property (Schedule III) 10,661,087 10,077,760
Net Service Company Property 20,270,945 22,249,251
INVESTMENTS
123 Investments in associate companies
(Schedule IV)
124 Other Investments (Schedule IV)
Total Investments 0 0
CURRENT AND ACCRUED ASSETS
131 Cash (340,481) 130,698
134 Special deposits 925 925
135 Working funds 11,598 13,597
136 Temporary cash investments (Schedule IV) 2,940,000 0
141 Notes receivable
143 Accounts receivable 2,013,977 575,368
144 Accumulated provision of uncollectible accounts
146 Accounts receivable from associate
companies (Schedule V) 6,334,439 6,249,060
152 Fuel stock expenses undistributed (Schedule VI)
154 Materials and supplies 57,643 48,946
163 Stores expense undistributed (Schedule VII) 4,518 0
165 Prepayments 236,142 215,335
171 Interest Receivable 1,919 0
174 Misc Current and Accrued Assets (Schedule VIII) 0 0
Total Current and Accrued Assets 11,260,680 7,233,929
DEFERRED DEBITS
181 Unamortized debt expense 143,192 165,907
182 Other regulatory assets 169,244 148,563
184 Clearing accounts
186 Miscellaneous deferred debits (Schedule IX) 549,889 537,893
188 Research, development, or demonstration
expenditures (Schedule X)
190 Accumulated deferred income taxes 427,765 1,596,407
Total Deferred Debits 1,290,090 2,448,770
TOTAL ASSETS AND OTHER DEBITS 32,821,715 31,931,950
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA SERVICE CORPORATION
SCHEDULE I - COMPARATIVE BALANCE SHEET
<CAPTION>
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF
DECEMBER 31, 1994
CURRENT PRIOR
PROPRIETARY CAPITAL
<S> <C> <C> <C> <C>
201 Common stock issued (Schedule XI) 1,000 1,000
211 Miscellaneous paid-in-capital (Schedule XI) 4,500,000 5,000,000
215 Appropriated retained earnings (Schedule XI)
216 Unappropriated retained earnings (Schedule XI) 335,717 (85,897)
Total Proprietary Capital 4,836,717 4,915,103
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII)
2240.1 Other long-term debt (Schedule XII) 13,400,000 14,500,000
225 Unamortized premium on long-term debt
226 Unamortized discount on long-term debt-debit
Total Long-Term Debt 13,400,000 14,500,000
227 Obligations under capital leases - non current 313,760 281,844
0 0
CURRENT AND ACCRUED LIABILITIES
2240.2 Current Maturities - Long-Term Debt 1,100,000 1,100,000
231 Notes payable
232 Accounts payable 2,470,314 1,627,076
233 Notes payable to associate companies
(Schedule XIII)
234 Accounts payable to associate companies
(Schedule XIII) 64,472 58,660
236 Taxes accrued 4,417 7,482
237 Interest accrued 747,368 803,468
238 Dividends declared
241 Tax collections payable 1,150 224
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 89,569 67,874
243 Obligations under capital leases - current 292,400 1,216,566
Total Current and Accrued Liabilities 4,769,690 4,881,350
DEFERRED CREDITS
253 Other deferred credits 7,768,582 5,709,570
254 Regulatory liabilities 11,336
255 Accumulated deferred investment tax credits
Total Deferred Credits 7,779,918 5,709,570
282 ACCUMULATED DEFERRED INCOME TAXES 1,721,630 1,644,083
TOTAL LIABILITIES & PROPRIETARY CAPITAL 32,821,715 31,931,950
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA SERVICE CORPORATION
For the Year Ended December 31, 1994
SCHEDULE II - SERVICE COMPANY PROPERTY
<CAPTION>
BALANCE AT RETIREMENTS BALANCE
BEGINNING OR OTHER (1)/ AT CLOSE
DESCRIPTION OF YEAR ADDITIONS SALES CHANGES OF YEAR
<S> <C> <C> <C> <C> <C> <C>
SERVICE COMPANY PROPERTY
Account
301 ORGANIZATION 9,040 9,040
303 MISCELLANEOUS
INTANGIBLE PLANT 2,186,424 135,682 798,224 (41,635) 1,482,247
304 LAND & LAND RIGHTS 717,080 717,080
305 STRUCTURES AND
IMPROVEMENTS 16,322,476 6,919 7,440 16,321,955
306 LEASEHOLD 542,449 542,449
IMPROVEMENTS
307 EQUIPMENT (2)/ 7,376,676 139,703 2,900 41,635 7,555,114
308 OFFICE FURNITURE
AND EQUIPMENT 3,503,430 88,193 600 3,591,023
309 AUTOMOBILES,
OTHER VEHICLES
AND RELATED
GARAGE EQUIPMENT
310 AIRCRAFT & AIRPORT
EQUIPMENT
311 OTHER SERVICE
COMPANY
PROPERTY (3)/
SUB-TOTAL 30,657,575 370,497 809,164 30,218,908
107 CONSTRUCTION
WORK IN
PROGRESS (4)/ 171,026 64,062 106,964
TOTAL 30,828,601 370,497 873,226 30,325,872
(1)/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
</TABLE>
<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> <C>
110 Cellular Phone Equipment 2,731
131 Word Processing Equipment 16,572
133 Data Processing Equipment 41,635 1,188,050
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 15,775 376,761
452 West Bridgewater Building Equipment 398 47,421
565 Meter Testing Equipment 2,286 73,012
570 Engineering Equipment 29,351 177,145
581 Substation/Communication Equipment 67,993 424,115
000 Microwave Equipment 21,000 4,979,923
TOTAL 178,438 7,555,114
(3)/ DESCRIBE OTHER SERVICE COMPANY PROPERTY:
NONE
(4)/ DESCRIBE CONSTRUCTION WORK IN PROGRESS:
Mainframe Terminal Replacement 92,274
Upgrade CAE hardware and software 14,690
--------
TOTAL 106,964
========
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
<CAPTION>
ADDITONS 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> <C>
Account
301 ORGANIZATION
303 MISCELLANEOUS
INTANGIBLE PLANT 1,534,062 445,039 798,224 1,180,877
304 LAND AND LAND RIGHTS
305 STRUCTURES AND
IMPROVEMENTS 2,440,264 407,632 7,440 (3,858) 2,836,598
306 LEASEHOLD
IMPROVEMENTS 542,448 542,448
307 EQUIPMENT 3,873,646 404,023 2,900 4,274,769
308 OFFICE FURNITURE
AND FIXTURES 1,685,839 140,556 600 600 1,826,395
309 AUTOMOBILES, OTHER
VEHICLES AND RELATED
GARAGE EQUIPMENT 1,501 (1,501) 0
310 AIRCRAFT AND AIRPORT
EQUIPMENT
311 OTHER SERVICE
COMPANY PROPERTY
10,077,760 1,397,250 809,164 (4,759) 10,661,087
(1)/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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> <C>
ACCOUNT 123 - INVESTMENT IN ASSOCIATE COMPANIES
NONE
ACCOUNT 124 - OTHER INVESTMENTS
NONE
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
Shawmut Bank, N.A. 0 2,940,000
TOTAL 0 2,940,000
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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 accomodation 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> <C>
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM
ASSOCIATE COMPANIES
Blackstone Valley Electric Co. 1,310,102 854,621
Eastern Utilities Associates 117,444 46,225
Montaup Electric Company 1,103,687 1,639,632
Eastern Edison Company 2,331,818 2,962,836
EUA Cogenex Corporation (Including Divisio 746,743 393,712
EUA Energy Investment Corporation 52,817 122,146
EUA Ocean State Corporation 23,162 22,451
Newport Electric Corporation 563,287 292,816
TOTAL ACCOUNTS RECEIVABLE 6,249,060 6,334,439
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
TOTAL
Analysis by Company: PAYMENTS
Blackstone Valley Electric Co. 1,165,063
Eastern Utilities Associates 31,582
Montaup Electric Company 1,108,844
Eastern Edison Company 3,055,565
EUA Cogenex Corporation (Including Divisions) 459,914
EUA Energy Investment Corporation 30,037
EUA Ocean State Corporation 13,794
Newport Electric Corporation 509,970
TOTAL PAYMENTS 6,374,769
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.
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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> <C>
ACCOUNT 152 - FUEL STOCK EXPENSES
UNDISTRIBUTED 0 0 0
NONE
TOTAL 0 0 0
SUMMARY:
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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> <C>
ACCOUNT 163 - STORES EXPENSE UNDISTRIBUTED
Stores expense incurred during year
distributed as follows: 0 16,299 16,299
Blackstone Valley Electric (1,978) (1,978)
Montaup Electric Company (3,970) (3,970)
Eastern Edison Company (4,058) (4,058)
Newport Electric Corporation (1,775) (1,775)
TOTAL 0 4,518 4,518
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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> <C>
ACCOUNT 174 - MISCELLANEOUS CURRENT AND
ACCRUED ASSETS 0 0
NONE
TOTAL 0 0
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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> <C>
ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS
Computer Graphics System 0 5,238
MFT Assessment 532,710 541,797
Miscellaneous Deferred Debits (2) 5,183 2,854
TOTAL 537,893 549,889
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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> <C>
ACCOUNT 188 - RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES 0
NONE
TOTAL 0
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
SCHEDULE XI - PROPRIETARY CAPITAL
<CAPTION>
NUMBER OF PAR OR STATED OUTSTANDING CLOSE OF
PERIOD
ACCOUNT SHARES VALUE NO. OF TOTAL
NUMBER CLASS OF STOCK AUTHORIZED PER SHARE SHARES
AMOUNT
<S> <C> <C> <C> <C> <C>
COMMON
201 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>
DESCRIPTION AMOUNT
<S> <C> <C> <C> <C> <C>
ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL $4,500,000
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS
(1) See Schedule XIV Notes to Financial Statements, Page 19 C.
TOTAL $4,500,000
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
BALANCE AT NET INCOME AT
BEGINNING OR DIVIDENDS CLOSE
DESCRIPTION OF YEAR (LOSS) PAID OF YEAR
<S> <C> <C> <C> <C> <C>
ACCOUNT 216 - UNAPPROPRIATED
RETAINED EARNINGS (85,897) 421,614 0 335,717
TOTAL (85,897) 421,614 0 335,717
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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>
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> <C> <C>
ACCOUNT 223 -
ADVANCES
FROM
ASSOCIATE
COMPANIES 0 0 0 0 0 0 0
ACCOUNT 224 -
OTHER LONG- Senior
TERM DEBT Secured Note 2,008 10.20% 20,000,000 14,500,000 0
1,100,000 13,400,000
TOTAL 2,008 10.20% 20,000,000 14,500,000 0 1,100,000 13,400,000
1/ GIVE AN EXPLANATION OF DEDUCTIONS:
(1) Current maturities - Long-term debt due within one year.
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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> <C>
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES
NONE
TOTAL 0 0
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
Blackstone Valley Electric Co. 42,428 43,229
Montaup Electric Co. 114 2,257
Eastern Edison Company 5,562 7,350
Eastern Utilities Associates 1,627 0
Cogenex 0 3,176
Newport Electric Corporation 8,929 8,460
TOTAL 58,660 64,472
ACCOUNT 242 - MISCELLANEOUS CURRENT AND
ACCRUED LIABILITIES
Insurance Reserve 50,000 65,069
RI Sales Tax 15,000 0
Commitment Fees Accrued 2,749 3,803
Flexible Spending 0 20,572
Miscellaneous 125 125
TOTAL 67,874 89,569
</TABLE>
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. For 1994 there were no non-affiliated profits, thus the
equity return billed to affiliated companies was not adjusted. 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 3.6% in
1994 and 3.5% in 1993 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.
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.
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
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.
B. Income Taxes:
Components of income taxes (credit) for the years 1994 and 1993 are as
follows:
(in thousands)
1994 1993
Federal:
Current $(1,196) $(85)
Deferred 992 (44)
(204) (129)
State:
Current 99 99
Deferred 64
Total income tax (credit) $( 41) $(30)
______ _____
Total income taxes (credit) 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)
1994 1993
Federal income tax computed at statutory rates $ 133 $127
Increases (decreases) in tax from:
Prior period tax adjustments 63 (38)
Non-taxable return from affiliates (204) (156)
Depreciation differences 4 -
State taxes, net of federal income
tax benefit (34) 64
Other (3) (27)
Total income tax credit $( 41) $(30)
____ _____
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
The Company adopted FASB Statement No. 109, "Accounting for Income Taxes"
(FAS109) effective as of January 1, 1993, 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, 1994 and 1993 no
valuation allowance was deemed necessary for total deferred tax assets.
Total deferred tax assets and liabilities for 1994 and 1993 are comprised
as follows:
(in thousands)
Deferred Tax Deferred Tax
Assets Liabilities
1994 1993 1994 1993
Plant related differences $ $ $1,650 $1,732
Alternative minimum tax 65 66
Bad debts 1,596
State net operating loss
carry forward 305
Computer licensing agreement 136
Other 29 42 179 19
Total $ 535 $1,704 $1,829 $1,751
_____ ______ ______ ______
The Company has approximately $65,000 of alternative minimum tax credits
which can be utilized to reduce the consolidated regular tax liability
and have no expiration. The Company also has approximately $305,000 in
state net operating loss carryforwards which it expects to utilize within
the five year period.
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,
1994 and 1993 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 1994 is $1,100,000 for each of
the years 1995 through 1999.
EUA has entered into equity maintenance agreements in connection with the
issuance of the Company's notes.
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
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.
The following is an analysis of the leased property under capital leases
as of December 31,
1994 1993
Equipment $4,866,012 $ 5,395,732
Less accumulated amortization (4,259,852) (3,897,322)
Net leased equipment $ 606,160 $ 1,498,410
___________ __________
The following is a schedule of approximate future minimum lease payment
commitments for capital and noncancelable leases as of December 31, 1994:
Capital Operating
Years ending December 31: Leases Leases
1995 $ 320,187 $1,278,551
1996 207,244 1,278,551
1997 74,566 1,278,551
1998 27,999 1,206,934
1999 15,224 992,082
After 1999 10,303 330 693
Total future minimum lease payments 655,523 $6,365,362
Less interest 49,363
Present value of net minimum lease
payments $ 606,160
__________
Total rent expense for operating leases was $1,702,860 and $1,404,197
for 1994 and 1993, respectively.
E. Capital Stock:
There were no changes in the number of authorized shares during the years
ended December 31, 1994 and 1993. During 1994 the Company paid $500,000
to its parent company, EUA, as a return of capital.
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
F. 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, 1994 and 1993, is as follows:
(in thousands)
1994 1993
Eastern Edison Company $16,606 $16,975
Blackstone Valley Electric Company 9,524 9,335
Montaup Electric Company 10,759 10,443
Newport Electric Corporation 4,938 4,642
Great Bay Power Corporation 28
EUA Cogenex Corporation 1,291 965
Eastern Utilities Associates 257 318
EUA Ocean State Corporation 167 141
EUA Energy Investment Corporation 248 97
$43,790 $42,944
_______ _______
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.
G. Pensions:
The Company participates with other EUA System companies in a
non-contributory defined benefit pension plan covering substantially all
of their employees. Regular 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.
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
The Company's net periodic pension cost amounted to $1,664,226 for 1994
and $1,325,006 for 1993.
1994 1993
Service cost - benefits earned during
the period $1,180,230 $ 918,438
Plus (less):
Interest cost on projected
benefit obligation 2,422,236 2,289,547
Actual return on assets 281,397 (3,308,314)
Net amortization and deferrals (2,219,637) 1,425,335
Total pension cost $1,664,226 $1,325,006
__________ __________
The weighted average discount rate and rate of increase in future
compensation levels used in determining the actuarial present value of
accumulated benefit obligations were 7.25% in 1994 and 8.75% in 1993 and
4.75% in 1994 and 6.00% in 1993 respectively. The expected long-term
rate of return on plan assets in 1994 and 1993 was 9.50% and 10%
respectively.
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 discount rate used to determine pension costs changed effective
January 1, 1995 to 8.25% and was used to calculate the plans funded
status at December 31, 1994.
All benefits provided under the supplemental plan are unfunded and any
payments to plan participants are made by EUA. As of December 31, 1994
approximately $2.3 million was included in other deferred credits for
this plan. For the years ended December 31, 1994, and 1993 expenses
related to the supplemental plan were $500,000 and $2.3 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.
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
H. 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 $1.9 million
and $2.0 million in 1994 and 1993 respectively.
The total cost of post-retirement benefits other than pensions for 1994
and 1993 includes the following components (in thousands):
1994 1993
Service cost $ 517 $ 431
Interest cost 1,017 1,047
Actual return on plan assets (69) (41)
Amortization of transition obligation 583 584
Other amortization and deferrals-net (51) 22
Total post-retirement benefit cost $1,997 $2,043
_______ ______
Assumptions:
Discount rate 7.25% 8.75%
Health care cost trend rate-near-term 13.00% 13.00%
-long term 5.00% 6.25%
Salary increase rate 4.75% 6.00%
Rate of return on plan assets - non union 5.50% 5.50%
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
1994 1993
Reconciliation of funded status:
Accumulated post retirement benefit obligation
(APBO):
Retirees $ (3,447) $ (3,567)
Active employees fully eligible for benefits (1,967) (2,712)
Other active employees (7,207) (7,877)
Total (12,621) (14,156)
Fair value of assets, primarily notes & bonds 3,902 2,186
Unrecognized transition obligation 10,509 11,093
Unrecognized net (gain) loss (1,541) 1,219
Prepaid post retirement benefit cost $ 249 $ 342
________ ______
The discount rate used to determine post retirement benefit costs was
changed effective January 1, 1995 to 8.25% and was used to calculate the
funded status of post-retirement benefits at December 31, 1994.
Increasing the assumed health care cost trend rate by 1% each year would
increase the total post-retirement benefit cost for 1994 by approximately
$311,000 and increase the total accumulated post-retirement benefit
obligation by approximately $2.1 million.
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
$1,904,004 and $2,385,000 during 1994 and 1993 respectively.
I. Post Employment Benefits:
In November 1992 the FASB issued Statement No. 112 "Employers' Accounting
for Post Employment Benefits" for fiscal years beginning after December
15, 1993. The impact of this is immaterial to the Company's results of
operation and therefore no liability has been recorded.
J. Lines of Credit:
The EUA System companies, which includes the Company, maintain short-term
lines of credit with various banks aggregating approximately $150
million. At December 31, 1994 unused short-term lines of credit amounted
to $118 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.
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
K. 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 securities of similar investment grade
and general character.
The estimated fair value of the company's financial instruments at
December 31, 1994 are as follows:
Carrying Fair
Amount Value
Cash and Temporary Cash Investments $ 2,612 $ 2,612
Long-Term Debt 14,500 15,189
L. 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, 1994, 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 1995 and the
outcome is uncertain at this time.
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
M. Deferred Debits:
The components of deferred debits at December 31, 1994 and 1993 are
detailed as follows (in thousands):
1994 1993
Regulatory Assets:
Deferred SFAS 109 costs $ 169 $ 149
Other deferred charges and assets:
MFT Assessment 542 533
Unamortized debt expense 143 166
Other 8 4
Total other deferred charges and assets 693 703
$ 862 $ 852
_____ _____
As a regulated industry, utilities are subject to certain accounting
rules that are not applicable to other industries. These accounting
rules allow regulated companies, in appropriate circumstances, to
establish regulatory assets and liabilities, which defer the current
financial impact of certain costs that are expected to be recovered in
future rates. The effects of competition or change in regulation could
ultimately cause the Company, as a result of its affiliation with
regulated companies within the EUA System, to no longer follow these
accounting rules. In such an event, any regulatory assets and
liabilities would have to be fully expensed at that time. We do not
expect this situation to occur in the near future.
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
SCHEDULE XV
STATEMENT OF INCOME
<CAPTION>
CURRENT PRIOR
ACCOUNT D E S C R I P T I O N YEAR YEAR
INCOME
<S> <C> <C> <C>
457 Services rendered to associate companies 43,790,029 42,915,665
458 Services rendered to nonassociate companies 643,327 624,732
419.1 Capitalized Interest - Equity 0
421.1 Miscellaneous income 4,610 11,701
Total Income 44,437,966 43,552,098
EXPENSE
920 Salaries and wages 23,096,035 22,116,042
921 Office supplies and expenses 1,604,000 1,546,076
922 Administrative expense transferred - credit
923 Outside services employed 2,453,975 1,275,343
924 Property insurance 53,825 52,519
925 Injuries and damages 521,076 502,118
926 Employee pension and benefits 6,941,267 8,343,171
928 Regulatory commission expense
930.1 General advertising expenses
930.2 Miscellaneous general expenses 658,796 713,288
931 Rents 2,758,233 2,686,384
935 Maintenance of structure and equipment 1,028,154 924,337
403 Depreciation and amortization expense 1,397,249 1,344,119
408 Taxes other than income taxes 2,057,259 2,009,051
409 Income taxes (1,096,849) 14,335
410 Provision for deferred income taxes 1,055,207 (44,342)
411 Provision for deferred income taxes - credit
419.0 Other interest income (2,847) (692)
421.0 Misc. non-operating income billed (36,657) (114)
426.3 Penalties 815 1,516
426.5 Other deductions 4,200
427 Interest on long-term debt 1,479,000 1,591,200
428 Amort. debt discount and expense 22,714 37,043
431 Other interest expense 20,900 47,351
Total Expense 44,016,352 43,158,745
Net Income 421,614 393,353
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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. 8,212,934 1,184,289 126,390 9,523,613
Eastern Utilities Associates 223,250 31,337 2,052 256,639
Montaup Electric Company 9,555,480 1,065,638 137,726 10,758,844
Eastern Edison Company 14,091,865 2,277,800 236,251 16,605,916
EUA Cogenex Corporation (Includ 1,108,246 170,328 12,354 1,290,928
EUA Energy Investment Corp. 244,938 2,122 1,138 248,198
EUA Ocean State Corporation 143,348 22,625 1,510 167,483
Newport Electric Corporation 4,321,475 552,634 64,299 4,938,408
Total 37,901,536 5,306,773 581,720 43,790,029
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
ANALYSIS OF BILLING
NON-ASSOCIATE COMPANIES
ACCOUNT 458
<CAPTION>
DIRECT INDIRECT COMPENSATION EXCESS
TOTAL
NAME OF COST COST FOR USE TOTAL OR
AMOUNT
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> <C> <C>
Taunton Municipal Lighting - Data Link 4,680 0 0 4,680 782 5,462
Taunton Municipal Lighting - G. L. 5,473 3,108 0 8,581 8,419 17,000
Taunton Municipal Lighting - Cust. Acct. 72,185 49,272 0 121,457 118,303 239,760
Taunton Municipal Lighting - A/P 6,943 10,002 0 16,945 22,595 39,540
Great Bay Power 99,588 16,983 0 116,571 0 116,571
West Center Street Realty - Land 18,600 0 0 18,600 14,160 32,760
Ocean State Power - NEPOOL Activities 25,521 5,510 0 31,031 0 31,031
Ocean State Power - Data Link 20,400 0 0 20,400 15,795 36,195
Middleboro - SCADA Software 1,980 0 0 1,980 2,770 4,750
Pascoag - SCADA Services 3,598 0 0 3,598 970 4,568
North Attleboro - Meter Testing (149) (71) 0 (220) 0 (220)
General Non-Affiliated Activity 360,996 (119) 0 360,877 (360,877) 0
Interconnect (Halifax & E. B'Water) 16,422 1,086 0 17,508 12,367 29,875
Transcapacity 70,414 11,974 0 82,388 0 82,388
Transcapacity Rental Space 3,647 0 0 3,647 0 3,647
TOTAL 710,298 97,745 0 808,043 (164,716) 643,327
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NON-ASSOCIATION COMPANIES
<CAPTION>
ASSOCIATE COMPANY CHARGES
DIRECT INDIRECT
DESCRIPTION OF ITEMS COST COST TOTAL
<S> <C> <C> <C> <C>
920 SALARIES AND WAGES 22,287,072 633,007 22,920,079
921 OFFICE SUPPLIES AND EXPENSES 999,265 581,032 1,580,297
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 1,994,283 396,916 2,391,199
924 PROPERTY INSURANCE 53,767 0 53,767
925 INJURIES AND DAMAGES 518,817 1,777 520,594
926 EMPLOYEE PENSIONS AND BENEFITS 6,690,901 199,491 6,890,392
928 REGULATORY COMMISSION EXPENSE 0 0 0
930.1 GENERAL ADVERTISING EXPENSE 0 0 0
930.2 MISC. GENERAL EXPENSE 585,282 2,524 587,806
931 RENTS 1,923,755 834,478 2,758,233
935 MAINTENANCE 856,345 161,248 1,017,593
403 DEPRECIATION 0 844,230 844,230
405 AMORTIZATION 0 0 0
408 TAXES OTHER THAN INCOME TAXES 1,992,049 48,603 2,040,652
409 INCOME TAXES 0 245,751 245,751
410 PROVISION FOR DEFERRED INCOME TAXES 0 (100,407) (100,407)
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT 0 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0
419.0 OTHER INTEREST INCOME 0 (2,847) (2,847)
421.0 MISC. NON-OPERATING INCOME BILLED 0 (36,660) (36,660)
426.3 PENALTIES 0 815 815
426.5 OTHER DEDUCTIONS 0 4,200 4,200
427 INTEREST ON LONG-TERM DEBT 0 1,449,437 1,449,437
428 AMORT. OF DEBT DISCOUNT AND EXPENSE 0 22,411 22,411
431 OTHER INTEREST EXPENSE 0 20,767 20,767
432 CAPITALIZED INTEREST
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 = 37,901,536 5,306,773 43,208,309
COMPENSATION FOR USE OF EQUITY CAPITAL= 581,720 581,720
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES=
TOTAL COST OF SERVICE= 37,901,536 5,888,493 43,790,029
</TABLE>
<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>
NON-ASSOCIATE CO. CHARGES
DIRECT INDIRECT
DESCRIPTION OF ITEMS COST COST TOTAL
<S> <C> <C> <C> <C>
920 SALARIES AND WAGES 175,956 0 175,956
921 OFFICE SUPPLIES AND EXPENSES 9,743 13,960 23,703
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 40,334 22,442 62,776
924 PROPERTY INSURANCE 58 0 58
925 INJURIES AND DAMAGES 482 0 482
926 EMPLOYEE PENSIONS AND BENEFITS 37,534 13,341 50,875
928 REGULATORY COMMISSION EXPENSE 0 0 0
930.1 GENERAL ADVERTISING EXPENSE 0 0 0
930.2 MISC. GENERAL EXPENSE 40,559 30,431 70,990
931 RENTS 0 0 0
935 MAINTENANCE 10,121 440 10,561
403 DEPRECIATION 516 4,640 5,156
405 AMORTIZATION 547,864 0 547,864
408 TAXES OTHER THAN INCOME TAXES 14,934 1,674 16,608
409 INCOME TAXES (1,342,600) 0 (1,342,600)
410 PROVISION FOR DEFERRED INCOME TAXES 1,155,733 (119) 1,155,614
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT 0 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0
419.0 OTHER INTEREST INCOME 0 0 0
421.0 MISC. NON-OPERATING INCOME BILLED 0 0 0
426.3 PENALTIES 0 0 0
426.5 OTHER DEDUCTIONS 0 0 0
427 INTEREST ON LONG-TERM DEBT 18,947 10,616 29,563
428 AMORT. OF DEBT DISCOUNT AND EXPENSE 148 155 303
431 OTHER INTEREST EXPENSE (31) 165 134
432 CAPITALIZED INTEREST 0
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 = 710,298 97,745 808,043
COMPENSATION FOR USE OF EQUITY CAPITAL= 0 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES= 0
TOTAL COST OF SERVICE= 710,298 97,745 808,043
</TABLE>
<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
DESCRIPTION OF ITEMS COST COST TOTAL
<S> <C> <C> <C> <C>
920 SALARIES AND WAGES 22,463,028 633,007 23,096,035
921 OFFICE SUPPLIES AND EXPENSES 1,009,008 594,992 1,604,000
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 2,034,617 419,358 2,453,975
924 PROPERTY INSURANCE 53,825 0 53,825
925 INJURIES AND DAMAGES 519,299 1,777 521,076
926 EMPLOYEE PENSIONS AND BENEFITS 6,728,435 212,832 6,941,267
928 REGULATORY COMMISSION EXPENSE 0 0 0
930.1 GENERAL ADVERTISING EXPENSE 0 0 0
930.2 MISC. GENERAL EXPENSE 625,841 32,955 658,796
931 RENTS 1,923,755 834,478 2,758,233
935 MAINTENANCE 866,466 161,688 1,028,154
403 DEPRECIATION 516 848,870 849,386
405 AMORTIZATION 547,864 0 547,864
408 TAXES OTHER THAN INCOME TAXES 2,006,983 50,277 2,057,260
409 INCOME TAXES (1,342,600) 245,751 (1,096,849)
410 PROVISION FOR DEFERRED INCOME TAXES 1,155,733 (100,526) 1,055,207
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT 0 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0
419.0 OTHER INTEREST INCOME 0 (2,847) (2,847)
421.0 MISC. NON-OPERATING INCOME BILLED 0 (36,660) (36,660)
426.3 PENALTIES 0 815 815
426.5 OTHER DEDUCTIONS 0 4,200 4,200
427 INTEREST ON LONG-TERM DEBT 18,947 1,460,053 1,479,000
428 AMORT. OF DEBT DISCOUNT AND EXPENSE 148 22,566 22,714
431 OTHER INTEREST EXPENSE (31) 20,932 20,901
432 CAPITALIZED INTEREST 0 0 0
0
INSTRUCTION: Total cost of service will equal 0
for associate and non-associate companies the 0
total amount billed under their separate 0
analysis of billing schedules. 0
0
TOTAL EXPENSES = 38,611,834 5,404,518 44,016,352
COMPENSATION FOR USE OF EQUITY CAPITAL= 0 581,720 581,720
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES= 0 0 0
TOTAL COST OF SERVICE= 38,611,834 5,986,238 44,598,072
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
SCHEDULE XVI
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
TOTAL DEPARTMENT OR SERVICE
FUNCTION
DESCRIPTION OF ITEMS AMOUNT OVERHEAD 105 110-111 115 130'S
<S> <C> <C> <C> <C> <C> <C> <C>
920 Salaries and Wages 23,096,035 269,812 748,125 294,506 3,227,098
921 Office Supplies and Expenses 1,604,000 6,139 33,588 7,057 108,473
922 Administrative Expense Transferred - Credit 0 0 0 0 0
923 Outside Services Employed 2,453,975 0 0 1,982 227,928
924 Property Insurance 53,825 0 0 0 0
925 Injuries and Damages 521,076 0 0 0 (1)
926 Employee Pension and Benefits 6,941,267 0 0 0 (14)
928 Regulatory Commission Expense 0 0 0 0 0
930.1 General Advertising Expense 0 0 0 0 0
930.2 Misc. General Expense 658,796 0 0 5,996 56,973
931 Rents 2,758,233 126 15,849 0 1,712,733
935 Maintenance 1,028,154 5,014 5,724 639 604,494
403 Depreciation 849,386 266 2,560 8,409 117,243
405 Amortization 547,864 0 0 0 0
408 Taxes Other Than Income Taxes 2,057,260 31,913 28,964 23,410 257,389
409 Income Taxes (1,096,849 0 0 0 0
410 Provision for Deferred Income Taxes 1,055,207 0 0 0 0
411 Provision for Deferred Income Taxes-Credit 0 0 0 0 0
411.5 Investment Tax Credit 0 0 0 0 0
419.0 Other Interest Income (2,847) 0 0 0 0
421.0 Misc Non-Operating Income Billed (36,660) 0 0 (19,937) 0
426.3 Penalties 815 0 0 0 0
426.5 Other Deductions 4,200 0 0 0 0
427 Interest on Long-Term Debt 1,479,000 0 4,017 24,103 241,688
428 Amort. of Debt Discount and Expense 22,714 0 62 370 3,771
431 Other Interest Expense 20,901 45 134 268 2,701
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 = 44,016,352 313,315 839,023 346,803 6,560,476
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
SCHEDULE XVI
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
DEPARTMENT OR SERVICE
FUNCTION
DESCRIPTION OF ITEMS 210 215-220 230, 235 240 260'S 280
<S> <C> <C> <C> <C> <C> <C> <C>
920 Salaries and Wages 143,202 554,513 122,828 57,448 2,018,351 450,074
921 Office Supplies and Expenses 5,835 37,377 35,015 19,308 34,156 20,278
922 Administrative Expense Transferred - Credit 0 0 0 0 0 0
923 Outside Services Employed 19,549 17,420 23,506 2,141 258,416 908
924 Property Insurance 0 0 53,825 0 0 0
925 Injuries and Damages 0 0 521,093 0 0 0
926 Employee Pension and Benefits 19,401 6,875,382 (55) 0 0 0
928 Regulatory Commission Expense 0 0 0 0 0 0
930.1 General Advertising Expense 0 0 0 0 0 0
930.2 Misc. General Expense 4,705 91,633 1,887 2,524 12,635 1,879
931 Rents 1,792 4,163 0 314,431 16,346 6,750
935 Maintenance 51 0 0 248 58,349 961
403 Depreciation 266 19,844 2,487 503 54,569 12,768
405 Amortization 0 0 0 0 0 0
408 Taxes Other Than Income Taxes 7,007 44,123 9,440 4,795 157,359 33,168
409 Income Taxes 0 0 0 0 0 0
410 Provision for Deferred Income Taxes 0 0 0 0 0 0
411 Provision for Deferred Income Taxes-Credit 0 0 0 0 0 0
411.5 Investment Tax Credit 0 0 0 0 0 0
419.0 Other Interest Income 0 0 0 0 0 0
421.0 Misc Non-Operating Income Billed 0 0 0 0 0 0
426.3 Penalties 0 0 0 0 0 0
426.5 Other Deductions 0 0 0 0 0 0
427 Interest on Long-Term Debt 0 48,207 4,689 0 143,615 28,121
428 Amort. of Debt Discount and Expense 0 740 67 0 2,182 432
431 Other Interest Expense 48 535 49 89 1,590 312
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 = 201,856 7,693,937 774,831 401,487 2,757,568 555,651
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
SCHEDULE XVI
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
DEPARTMENT OR SERVICE
FUNCTION
DESCRIPTION OF ITEMS 305,310 315-325 360'S 372 410-418 420-424
<S> <C> <C> <C> <C> <C> <C> <C>
920 Salaries and Wages 303,469 187,381 788,496 1,306,641 1,143,243 1,406,884
921 Office Supplies and Expenses 19,097 24,710 26,718 13,569 80,616 34,382
922 Administrative Expense Transferred - Credit 0 0 0 0 0 0
923 Outside Services Employed 86,220 4,986 0 94,755 1,123,917 2,506
924 Property Insurance 0 0 0 0 0 0
925 Injuries and Damages 0 0 0 0 0 0
926 Employee Pension and Benefits 0 21,347 0 0 0 0
928 Regulatory Commission Expense 0 0 0 0 0 0
930.1 General Advertising Expense 0 0 0 0 0 0
930.2 Misc. General Expense 1,784 2,327 9,424 5,338 406,481 20,771
931 Rents 7,811 323 6,952 1,980 16,354 14,867
935 Maintenance 1,136 0 1,045 57 3,453 34,504
403 Depreciation 9,596 8,412 28,320 6,228 3,334 37,211
405 Amortization 0 0 0 0 0 0
408 Taxes Other Than Income Taxes 22,276 15,911 64,111 107,138 68,848 110,827
409 Income Taxes 0 0 0 0 0 0
410 Provision for Deferred Income Taxes 0 0 0 0 0 0
411 Provision for Deferred Income Taxes-Credit 0 0 0 0 0 0
411.5 Investment Tax Credit 0 0 0 0 0 0
419.0 Other Interest Income 0 0 0 0 0 0
421.0 Misc Non-Operating Income Billed 0 0 0 0 0 0
426.3 Penalties 0 0 0 0 0 0
426.5 Other Deductions 0 0 0 0 4,200 0
427 Interest on Long-Term Debt 20,086 17,740 68,293 0 0 97,416
428 Amort. of Debt Discount and Expense 308 291 1,049 0 0 1,520
431 Other Interest Expense 223 201 758 1,045 669 1,087
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 = 472,006 283,629 995,166 1,536,751 2,851,115 1,761,975
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
SCHEDULE XVI
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
DEPARTMENT OR SERVICE
FUNCTION
DESCRIPTION OF ITEMS 426-433 440'S 450'S 560 565 570's
<S> <C> <C> <C> <C> <C> <C> <C>
920 Salaries and Wages 2,702,146 2,277,493 599,863 98,661 85,668 2,122,444
921 Office Supplies and Expenses 70,488 27,004 561,705 7,288 22,161 38,705
922 Administrative Expense Transferred - Credit 0 0 0 0 0 0
923 Outside Services Employed 155,027 0 394,776 22 8,403 8
924 Property Insurance 0 0 0 0 0 0
925 Injuries and Damages 1 0 (17) 0 0 0
926 Employee Pension and Benefits 13 0 25,193 0 0 0
928 Regulatory Commission Expense 0 0 0 0 0 0
930.1 General Advertising Expense 0 0 0 0 0 0
930.2 Misc. General Expense 7,453 828 0 0 0 10,862
931 Rents 449,754 29,763 93,276 12,142 8,969 5,968
935 Maintenance 12,030 33,379 161,000 3,358 0 7,087
403 Depreciation 96,392 87,776 52,043 275 485 63,174
405 Amortization 547,864 0 0 0 0 0
408 Taxes Other Than Income Taxes 215,231 184,083 307,975 9,972 7,115 164,260
409 Income Taxes (1,096,849 0 0 0 0 0
410 Provision for Deferred Income Taxes 1,055,207 0 0 0 0 0
411 Provision for Deferred Income Taxes-Credit 0 0 0 0 0 0
411.5 Investment Tax Credit 0 0 0 0 0 0
419.0 Other Interest Income (2,847) 0 0 0 0 0
421.0 Misc Non-Operating Income Billed (16,723) 0 0 0 0 0
426.3 Penalties 815 0 0 0 0 0
426.5 Other Deductions 0 0 0 0 0 0
427 Interest on Long-Term Debt 222,293 261,120 72,310 0 0 146,965
428 Amort. of Debt Discount and Expense 3,407 4,011 1,110 0 0 2,207
431 Other Interest Expense 3,833 2,900 802 54 89 1,621
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 = 4,425,535 2,908,357 2,270,036 131,772 132,890 2,563,301
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
SCHEDULE XVI
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
DESCRIPTION OF ITEMS 581-585 586, 587 588 633
<S> <C> <C> <C> <C> <C>
920 Salaries and Wages 1,360,809 530,535 138,771 157,574
921 Office Supplies and Expenses 41,785 57,008 265,723 5,815
922 Administrative Expense Transferred - Credit 0 0 0 0
923 Outside Services Employed 7,674 10,075 13,756 0
924 Property Insurance 0 0 0 0
925 Injuries and Damages 0 0 0 0
926 Employee Pension and Benefits 0 0 0 0
928 Regulatory Commission Expense 0 0 0 0
930.1 General Advertising Expense 0 0 0 0
930.2 Misc. General Expense 8,457 6,336 503 0
931 Rents 32,119 3,745 2,020 0
935 Maintenance 56,113 3,630 35,080 802
403 Depreciation 191,708 32,196 6,661 6,660
405 Amortization 0 0 0 0
408 Taxes Other Than Income Taxes 113,469 44,148 11,380 12,948
409 Income Taxes 0 0 0 0
410 Provision for Deferred Income Taxes 0 0 0 0
411 Provision for Deferred Income Taxes-Credit 0 0 0 0
411.5 Investment Tax Credit 0 0 0 0
419.0 Other Interest Income 0 0 0 0
421.0 Misc Non-Operating Income Billed 0 0 0 0
426.3 Penalties 0 0 0 0
426.5 Other Deductions 0 0 0 0
427 Interest on Long-Term Debt 15,399 38,834 12,052 12,052
428 Amort. of Debt Discount and Expense 242 575 185 185
431 Other Interest Expense 1,154 426 134 134
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 = 1,828,929 727,508 486,265 196,170
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
<CAPTION>
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> <C>
105 Executive Admin. &
Support 269,812 269,812 1
110-111 Executive Admin. &
Support 748,125 8,946 739,104 75 3
115 Internal Audit 294,506 1,865 292,641 6
130's Information Systems 3,227,098 5,327 3,178,561 43,210 58
210 Admin. Support -
Corporate 143,202 5,757 137,445 1
215-220 Human Resources/
Emp. Benefits 554,513 5,193 549,320 12
230 Safety and
Occupational
Health 122,828 617 122,211 2
240 Office Services -
Boston 57,448 57,448 2
260's Corporate Planning
/C&LM/PWR Mgmt. 2,018,351 1,997,811 20,540 36
280 Strategic Studies 450,074 432,188 17,886 7
305, 31 Executive Admin &
Support/Corp.
Comm. 303,469 2,726 296,860 3,883 5
315-325 Corporate
Communications 187,381 805 186,576 4
360's Matls. Mgmt/Stores/
Purchasing 788,496 788,496 17
372 System Operations 1,306,641 1,306,641 23
410-417 Financial/Treasury
Services 1,143,243 17,946 1,098,064 27,233 15
420-424 Rate Admin/Load
Research 1,406,884 1,406,884 24
426-433 Comptroller/Acctng. 2,702,146 37,738 2,616,693 47,715 57
440's Customer Service 2,277,493 26 2,277,290 177 65
450's Bldg & Facilities-WB 599,863 597,700 2,163 18
560 Eng. & Oper Admin
& Support 98,661 98,661 1
565 Central Meter Test 85,668 85,668 2
570's Engineering 2,122,444 2,111,590 10,854 37
581-585 S & C / Substation /
Radio/ Microwave
Stds. 1,360,809 1,360,809 26
586-587 Environmental Eng. 530,535 530,535 10
588 Telecommunications 138,771 176 136,375 2,220 3
633 Admin. & Support 157,574 157,574 3
TOTAL 23,096,035 87,122 22,832,957 175,956 438
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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 - Legal
McDermott, Will and Emery 75 State Street NA 194,148
Boston, MA 02109
Various (5) NA 28,329
---------
222,477
---------
Outside Services - Accounting
Coopers and Lybrand One International Place NA 56,601
---------
Boston, MA 02107
Outside Services - E.D.P.
Energy Management 3715 Northside Parkway NA 968,549
Associates Bldg. 100, Suite 800
Atlanta, Georgia 30327
Cyborg Systems, Inc. P.O. Box 41876 NA 33,500
Chicago, IL 60641
SYBASE 77 South Bedford Street NA 118,743
Burlington, MA. 01803
Intelligent Document 490 Boston Post Road NA 92,752
Processing Inc. Chiswick Park
Sudbury, MA. 01776
Gateway 2000 610 Gateway Drive NA 40,955
P.O. Box 2000
North Sioux City, S.D.
57049-2000
Various (22) NA 101,002
---------
1,355,501
---------
Outside Services - Building
and Maintenance
CCU Commercial Services 19 Norfolk Avenue NA 76,240
South Easton, MA 02375
First Security Services P.O. Box 4757 NA 117,469
Boston, MA 02212
Various (26) NA 78,980
---------
272,689
---------
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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 32,512
Canton, MA 02021
Cambridge Reports, Inc. 675 Massachusetts Avenue NA 77,980
Cambridge, MA 02139
J. Flanagan and Co. 26 Colonial Avenue NA 42,000
Waltham, MA 02154
DRI McGraw-Hill P.O. Box 50210 NA 27,983
Woburn, MA 01815
Milbank, Tweed, Hadley & 1 Chase Manhattan Plaza NA 46,662
& McCloy New York, N.Y. 10005-1413
Media Concepts Corporation 25 North Main Street NA 39,375
Assonet, MA 02702-1136
Newport Electric Corp. 12 Turner Road A 113,401
Middletown, R.I. 02840-0011
Montaup 750 West Center Street A 25,939
P.O. Box 543
West Bridgewater, MA. 02379
Various (47) NA 140,855
---------
546,707
---------
Total Outside Services Employed 2,453,975
=========
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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) 155,659
Employee Education Reimbursement (9260-03) 75,918
Employee Publications (9260-04) 20,795
Life Insurance (9260-12 to 9260-19) 106,560
Group Health including FAS 106 (9260-10/9260-22 TO 9260-39) 3,772,103
Company Match/Employee Savings Plan (9260-40 to 9260-43) 506,839
Pension Plan (9260-51 to 9260-58) 2,128,511
Miscellaneous (Service Recognition, Employee Exams 174,882
and Employee related programs)
TOTAL 6,941,267
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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 0
TOTAL 0
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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. P441 (b)(2)] shall
be separately classified.
<CAPTION>
D E S C R I P T I O N AMOUNT
<S> <C>
Industry Association Dues 10,047
SEC Filing Fees 875
Corporate and Fiscal Expenses Including Investor Relation 137,117
Transfer Agent Fees and Expenses 109,380
Employee Training and Seminars 230,287
Printing and Distribution of Quarterly and Annual Reports 129,971
Miscellaneous 41,119
TOTAL 658,796
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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 299,325
Brockton MA, Office Facility 14,926
Lincoln RI, Office Facility 426,771
Total Building Rents 741,022
Data Processing and Other Equipment Rents 2,017,211
TOTAL 2,758,233
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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:
Massachuetts Unemployment Tax 142,989
Rhode Island Unemployment Tax 16,740
Job Development Tax (Rhode Island) 1,168
Property Tax 258,321
Health Insurance Tax - Massacusetts 6,641
Miscellaneous 26,060
451,919
U.S. Government Tax:
FICA 1,577,258
Federal Unemployment Tax 28,083
1,605,341
2,057,260
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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 0
0
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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
<S> <C> <C>
ACCOUNT 426.5 - Other Deductions
Public Affairs Jim Flanagan & Company 4,200
TOTAL 4,200
</TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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 renedered 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.
ANNUAL REPORT OF EUA Service Corporation
ORGANIZATION CHART
CHAIRMAN & CEO
@
@
@----------------------------------
@ @
@ @
-------------------------- @
@ @ @
@ @ @
EXECUTIVE PRESIDENT @
V.P. & C.O.O. @
- ------------------------ ------------------ ------------------
Engineering Executive V.P. @ @ @
Purchasing, Mat. Mgmt Customer Service @ @ @
& Stores Bldg. & Facilities @ @ @
System Operations Information Services @ @ @
Resource Management Corp. Communications @ TREASURER @
Substation & Communication Rates @ @
Comptroller @ @
Secretary @ @
Employee Benefits SPECIAL INTERNAL
Human Resources PROJECTS AUDIT
Safety/Occ. Health
Insurance
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
METHODS OF ALLOCATION
---------------------
Average Number of Employees
Total Costs Billed 12 Months Ended
Number of Customers
Revenues - Net of Inter-Company
Gross Utility Plant Including CWIP
Total Assets
Number of Vehicles
Gross Utility Plant Excluding CWIP
Power Generated
KWH Sales
Number of Rate Schedules
Gross Revenues
Purchase Orders Processed
M & S Inventory Balance
Transmission & Distribution Lines
KWH Sales Net of Inter-Company
Gross Revenues Less Fuel & Purchased Power
Meters Tested
Substations Maintained
SCADA Utilization
Gross Transmission Plant
Number of Radios
Construction Work in Progress
Computer Utilization
Direct Costs
Number of Telephone Calls
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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, 1994:
<S> <C> <C>
Blackstone Valley Electric Company $126,390
Montaup Electric Company 137,726
EUA Energy 1,138
Eastern Edison Company 236,251
Eastern Utilities Associates 2,052
EUA Cogenex Corporation 12,354
EUA Ocean State Corporation 1,510
Newport Electric Corporation 64,299
TOTAL $581,720
</TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1994
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 27, 1995
<TABLE> <S> <C>
<ARTICLE> OPUR2
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<BOOK-VALUE> PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 20271
<TOTAL-INVESTMENTS> 0
<TOTAL-CURRENT-ASSETS> 11261
<TOTAL-DEFERRED-DEBITS> 1290
<OTHER-ASSETS-AND-DEBITS> 0
<TOTAL-ASSETS-AND-DEBITS> 32822
<TOTAL-PROPRIETARY-CAPITAL> 4837
<TOTAL-LONG-TERM-DEBT> 13400
<NOTES-PAYABLE> 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 0
<OTHER-CURR-AND-ACCRUED-LIAB> 4770
<TOTAL-DEFERRED-CREDITS> 7780
<DEFERRED-INCOME-TAX> 1722
<TOT-LIABIL-AND-PROPRIET-CAP> 32822
<SERVICES-ASSOCIATE-COMPANIES> 43790
<SERVICES-NON-ASSOCIATE-COMP> 643
<MISC-INCOME-OR-LOSS> 5
<TOTAL-INCOME> 44438
<SALARIES-AND-WAGES> 23096
<EMPLOYEE-PENSION-AND-BENEFIT> 6941
<OTHER-EXPENSES> 13979
<TOTAL-EXPENSES> 44016
<NET-INCOME> 421
<TOTAL-EXPENSES-DIRECT-COST> 38612
<TOTAL-EXPENSES-INDIRECT-COST> 5404
<TOT-EXP-DIRECT-AND-INDIRECT> 44016
<PERSONNEL-END-OF-YEAR> 437
</TABLE>
