Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1995 and Ending December 31, 1995
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)
*NEW PAGE*
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, 1995
CURRENT PRIOR
SERVICE COMPANY PROPERTY
<S> <C> <C> <C> <C>
101 Service company property (Schedule II) 30,410,487 30,218,908
101.1 Property under capital leases - Net 1,107,222 606,160
[Page 19C Footnote D]
107 Construction work in progress (Schedule II) 1,425,389 106,964
Total Property 32,943,098 30,932,032
111 & Less accumulated provision for depreciation
108 and amortization of service company
property (Schedule III) 11,551,876 10,661,087
Net Service Company Property 21,391,222 20,270,945
INVESTMENTS
123 Investments in associate companies
(Schedule IV)
124 Other Investments (Schedule IV)
Total Investments 0 0
CURRENT AND ACCRUED ASSETS
131 Cash 1,769 (340,481)
134 Special deposits 40,925 925
135 Working funds 11,605 11,598
136 Temporary cash investments (Schedule IV) 200,000 2,940,000
141 Notes receivable 0 0
143 Accounts receivable 567,345 2,013,977
144 Accumulated provision of uncollectible accounts 0 0
146 Accounts receivable from associate
companies (Schedule V) 8,696,603 6,334,439
152 Fuel stock expenses undistributed (Schedule VI) 0 0
154 Materials and supplies 54,559 57,643
163 Stores expense undistributed (Schedule VII) 2,461 4,518
165 Prepayments 499,590 236,142
171 Interest Receivable 109 1,919
174 Misc Current and Accrued Assets (Schedule VIII) 0 0
Total Current and Accrued Assets 10,074,966 11,260,680
DEFERRED DEBITS
181 Unamortized debt expense 112,118 143,192
182.3 Other regulatory assets 202,598 169,244
184 Clearing accounts 0 0
186 Miscellaneous deferred debits (Schedule IX) 1,637,358 549,889
188 Research, development, or demonstration
expenditures (Schedule X) 0 0
190 Accumulated deferred income taxes 319,492 427,765
Total Deferred Debits 2,271,566 1,290,090
TOTAL ASSETS AND OTHER DEBITS 33,737,754 32,821,715
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA SERVICE CORPORATION
SCHEDULE I - COMPARATIVE BALANCE SHEET
<CAPTION>
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31, 1995
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) 3,500,000 4,500,000
215 Appropriated retained earnings (Schedule XI)
216 Unappropriated retained earnings (Schedule XI) 356,832 335,717
Total Proprietary Capital 3,857,832 4,836,717
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII)
2240.1 Other long-term debt (Schedule XII) 11,200,000 13,400,000
225 Unamortized premium on long-term debt
226 Unamortized discount on long-term debt-debit
Total Long-Term Debt 11,200,000 13,400,000
227 Obligations under capital leases - non current 547,956 313,760
CURRENT AND ACCRUED LIABILITIES
2240.2 Current Maturities - Long-Term Debt 1,100,000 1,100,000
231 Notes payable
232 Accounts payable 1,802,317 2,470,314
233 Notes payable to associate companies
(Schedule XIII)
234 Accounts payable to associate companies
(Schedule XIII) 178,806 64,472
236 Taxes accrued 10,149 4,417
237 Interest accrued 635,168 747,368
238 Dividends declared
241 Tax collections payable 4,160 1,150
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 82,283 89,569
243 Obligations under capital leases - current 559,266 292,400
Total Current and Accrued Liabilities 4,372,149 4,769,690
DEFERRED CREDITS
253 Other deferred credits 12,006,932 7,768,582
254 Regulatory liabilities 17,400 11,336
255 Accumulated deferred investment tax credits
Total Deferred Credits 12,024,332 7,779,918
282 & 283 ACCUMULATED DEFERRED INCOME TAXES 1,735,485 1,721,630
TOTAL LIABILITIES & PROPRIETARY CAPITAL 33,737,754 32,821,715
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA SERVICE CORPORATION
For the Year Ended December 31, 1995
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 0 0 0 9,040
303 MISCELLANEOUS
INTANGIBLE PLANT 1,482,247 0 0 0 1,482,247
304 LAND & LAND RIGHTS 717,080 0 0 0 717,080
305 STRUCTURES AND
IMPROVEMENTS 16,321,955 31,766 0 0 16,353,721
306 LEASEHOLD 542,449 0 0 0 542,449
IMPROVEMENTS
307 EQUIPMENT(2)/ 7,555,114 363,975 158,000 0 7,761,089
308 OFFICE FURNITURE
AND EQUIPMENT 3,591,023 0 46,162 0 3,544,861
309 AUTOMOBILES,
OTHER VEHICLES
AND RELATED
GARAGE EQUIPMENT 0 0 0 0 0
310 AIRCRAFT & AIRPORT
EQUIPMENT 0 0 0 0 0
311 OTHER SERVICE
COMPANY
PROPERTY(3)/ 0 0 0 0 0
SUB-TOTAL 30,218,908 395,741 204,162 30,410,487
107 CONSTRUCTION
WORK IN
PROGRESS(4)/ 106,964 1,318,425 0 0 1,425,389
TOTAL 30,325,872 1,714,166 204,162 31,835,876
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
(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:
</TABLE>
<TABLE>
SCHEDULE II - CONTINUED
<CAPTION>
BALANCE
NET AT CLOSE
SUBACCOUNT DESCRIPTION ADDITIONS OF YEAR
<S> <C> <C> <C> <C>
110 Cellular Phone Equipment 2,731
131 Word Processing Equipment 16,572
133 Data Processing Equipment 179,898 1,367,948
240 Office Services Equipment 450
310 Employee Communication/Visual Aids Equipment 71,013
364 Purchasing/Material Management Equipment 10,886 111,199
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 (158,000) 218,761
452 West Bridgewater Building Equipment 47,421
565 Meter Testing Equipment 8,723 81,735
574 Engineering Equipment 2,073 179,218
582/5 Substation/Communication Equipment 162,395 586,510
000 Microwave Equipment 4,979,923
TOTAL 205,975 7,761,089
(3)/ DESCRIBE OTHER SERVICE COMPANY PROPERTY:
NONE
(4)/ DESCRIBE CONSTRUCTION WORK IN PROGRESS:
Building Renovations - West Bridgewater 90,574
Furniture and Equipment - West Bridgewater 65,756
Construction of Addition to West Bridgewater Building 1,109,010
Upgrade CAE hardware and software 160,049
-----------
TOTAL 1,425,389
===========
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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> <C>
Account
301 ORGANIZATION 0 0 0 0
303 MISCELLANEOUS
INTANGIBLE PLANT 1,180,877 89,100 0 0 1,269,977
304 LAND AND LAND RIGHTS 0 0 0 0
305 STRUCTURES AND
IMPROVEMENTS 2,836,598 402,760 0 (57,168) 3,182,190
306 LEASEHOLD
IMPROVEMENTS 542,448 0 0 0 542,448
307 EQUIPMENT 4,274,769 479,036 158,000 0 4,595,805
308 OFFICE FURNITURE
AND FIXTURES 1,826,395 181,223 46,162 0 1,961,456
309 AUTOMOBILES, OTHER
VEHICLES AND RELATED
GARAGE EQUIPMENT 0 0 0 0 0
310 AIRCRAFT AND AIRPORT
EQUIPMENT 0 0 0 0 0
311 OTHER SERVICE
COMPANY PROPERTY 0 0 0 0 0
10,661,087 1,152,119 204,162 (57,168) 11,551,876
(1)/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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. 2,940,000 200,000
TOTAL 2,940,000 200,000
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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> <C>
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM
ASSOCIATE COMPANIES
Blackstone Valley Electric Co. 854,621 572,389
Eastern Utilities Associates 46,225 3,503,881
Montaup Electric Company 1,639,632 1,134,728
Eastern Edison Company 2,962,836 2,220,375
EUA Cogenex Corporation (Including Divisions) 393,712 449,655
EUA Energy Investment Corporation 122,146 42,682
EUA Ocean State Corporation 22,451 23,826
Newport Electric Corporation 292,816 744,534
EUA Transcapacity 0 4,533
TOTAL ACCOUNTS RECEIVABLE 6,334,439 8,696,603
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
TOTAL
Analysis by Company: PAYMENTS
Blackstone Valley Electric Co. 1,298,353
Eastern Utilities Associates 51,164
Montaup Electric Company 1,026,584
Eastern Edison Company 3,176,483
EUA Cogenex Corporation (Including Divisions) 469,490
EUA Energy Investment Corporation 993
EUA Ocean State Corporation 7,936
Newport Electric Corporation 493,905
EUA Transcapacity 1,813
TOTAL PAYMENTS 6,526,721
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, 1995
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, 1995
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 35,718 35,718
Blackstone Valley Electric 0 (5,185) (5,185)
Montaup Electric Company 0 (12,518) (12,518)
Eastern Edison Company 0 (10,772) (10,772)
Newport Electric Corporation 0 (4,782) (4,782)
TOTAL 0 2,461 2,461
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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, 1995
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 5,238 14,825
MFT Assessment 541,797 577,047
Grantor Trust Assets 0 1,031,000
Retrospective Insurance Adjustment 0 12,443
Miscellaneous Deferred Debits (4) 2,854 2,043
TOTAL 549,889 1,637,358
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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, 1995
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 $3,500,000
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS
(1) See Schedule XIV Notes to Financial Statements, Page 19C.
TOTAL $3,500,000
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 335,717 404,115 383,000 356,832
TOTAL 335,717 404,115 383,000 356,832
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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 13,400,000 0 2,200,000 11,200,000
TOTAL 2,008 10.20% 20,000,000 13,400,000 0 2,200,000 11,200,000
1/ GIVE AN EXPLANATION OF DEDUCTIONS:
(1) Current maturities - Long-term debt due within one year 1,100,000 and Optional Sinking fund payment $1,100,000.
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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. 43,229 89,114
Montaup Electric Co. 2,257 3,310
Eastern Edison Company 7,350 12,650
Eastern Utilities Associates 0 0
Cogenex 3,176 24,440
Newport Electric Corporation 8,460 49,292
TOTAL 64,472 178,806
ACCOUNT 242 - MISCELLANEOUS CURRENT AND
ACCRUED LIABILITIES
Insurance Reserve 65,069 61,113
Commitment Fees Accrued 3,803 2,365
Flexible Spending 20,572 18,805
Miscellaneous 125 0
TOTAL 89,569 82,283
</TABLE>
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS
A. Nature of Operations and 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. The Company provides
administrative, data processing, engineering, financial and certain other
services, at cost, to the associated companies in the EUA System.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Income and Expenses
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 1995 $202,471 of non-affiliated profits was utilized to
reduce the level of equity return billed to affiliated companies. For
1994 there were no non-affiliated profits, thus the equity return billed
to affiliated companies was not adjusted.
Voluntary Retirement Incentive (VRI) Offer
In March 1995, EUA announced a corporate reorganization. As part of the
reorganization, a VRI was offered to twenty eight professionals of the
Company. Twenty two of those eligible for the program accepted the
incentive and retired effective June 1, 1995. This incentive program
resulted in a one-time $2.3 million pre-tax charge to second quarter 1995
expenses of the Company. The Company billed out this one-time charge to
its affiliates as part of its operating costs resulting in no financial
impact on the Company's results of operations. The estimated payback
period is approximately 18 months.
*NEW PAGE*
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
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 3.3% in
1995 and 3.6% in 1994 based on the average depreciable property balances
at the beginning and end of each year. Equipment and vehicles leased
under capital leases are amortized over the lives of the respective
leases.
Deferred Debits
The components of deferred debits at December 31, 1995 and 1994 are
detailed as follows (in thousands):
1995 1994
Regulatory Assets:
Deferred SFAS 109 costs (Note B) $ 203 $ 169
Other deferred charges and assets:
MFT Assessment (Note L) 577 542
Unamortized debt expense 112 143
Grantor Trust Assets 1,031
Other 29 8
----- ----
Total other deferred charges and assets 1,749 693
----- ----
$1,952 $ 862
===== ====
Capitalized Interest
Capitalized equity and debt interest components represent the estimated
cost of borrowed and equity funds used to finance the Company's addition
to its existing office facility. The equity portion of $4,446 is
included in Other income and was allocated to affiliated companies. The
interest portion of $14,396 was allocated to affiliated companies as a
reduction in interest expense.
Cash and Temporary Cash Investments
The Company considers all highly liquid or temporary cash investments
purchased with a maturity of three months or less when acquired to be
cash equivalents.
*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 presentations.
New Accounting Standard
In March 1995, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standard No. 121, "Accounting for the Impairment
of Long-Lived Assets and for Long-Lived Assets to be Disposed Of" (FAS
121), effective for fiscal year 1996. FAS 121 requires all regulatory
assets, assets which were established as a result of high probability of
recovery in a regulated environment, to continue to meet that high
probability of recovery at each balance sheet date. Based on the current
regulatory framework, management does not expect that adoption of this
standard will have a material effect on the Company's financial position
or results of operation. However, this assumption may change in the
future as changes are made in the current regulatory framework or as
competitive factors influence wholesale and retail pricing in the
electric utility industry.
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.
*NEW PAGE*
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
B. Income Taxes:
Components of income tax expense (credit) for the years 1995 and 1994 are
as follows:
(in thousands)
1995 1994
Federal:
Current $ (1) $(1,196)
Deferred 36 992
---- -------
35 (204)
State:
Current 8 99
Deferred 59 64
---- -------
Total income tax expense (credit) $ 102 $(41)
==== =======
Total income tax expense (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)
1995 1994
Federal income tax computed at statutory rates $ 177 $133
Increases (decreases) in tax from:
Prior period tax adjustments (29) 63
Non-taxable return from affiliates (106) (204)
Depreciation differences 4 4
State taxes, net of federal income
tax benefit 67 (34)
Other (11) (3)
----- -----
Total income tax expense (credit) $ 102 $(41)
===== =====
*NEW PAGE*
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. At December 31, 1995 and 1994 no
valuation allowance was deemed necessary for total deferred tax assets.
Total deferred tax assets and liabilities for 1995 and 1994 are comprised
as follows:
(in thousands)
Deferred Tax Deferred Tax
Assets Liabilities
1995 1994 1995 1994
Plant related differences $ $ $1,608 $1,650
Alternative minimum tax 65
State net operating loss
carry forward 246 305
Computer licensing agreement 80 136
Other 31 29 165 179
----- ------ ------ ------
Total $ 357 $ 535 $1,773 $1,829
===== ====== ====== ======
The Company has approximately $246,000 in state net operating loss carry
forwards which it expects to utilize within the five year period
according to state regulations.
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 $1,500,000 or greater.
The aggregate amount of the Company's cash sinking fund requirement for
long-term debt for five years following 1995 is $1,100,000 for each of
the years 1996 through 2000.
EUA has entered into equity maintenance agreements in connection with the
issuance of the Company's notes.
*NEW PAGE*
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 equipment, office equipment and vehicles.
The following is an analysis of the leased property under capital leases
as of December 31,
1995 1994
Equipment 2,446,501 $ 4,866,012
Less accumulated amortization (1,339,279) (4,259,852)
----------- -----------
Net leased equipment $ 1,107,222 $ 606,160
=========== ===========
The following is a schedule of approximate future minimum lease payment
commitments for capital and noncancelable leases as of December 31, 1995:
Capital Operating
Years ending December 31: Leases Leases
1996 $ 628,353 $1,278,551
1997 411,078 1,278,551
1998 84,144 1,206,934
1999 66,824 992,082
2000 31,834 330,693
After 2000 1,805
--------- ---------
Total future minimum lease payments 1,224,038 $5,086,811
=========
Less interest 116,816
---------
Present value of net minimum lease
payments $1,107,222
=========
Total rent expense for operating leases was $1,668,639 and $1,702,860
for 1995 and 1994, respectively.
*NEW PAGE*
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
E. Capital Stock:
There were no changes in the number of authorized shares during the years
ended December 31, 1995 and 1994. During 1995 the Company paid
$1,000,000 to its parent company, EUA, as a return of capital.
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, 1995 and 1994, is as follows:
(in thousands)
1995 1994
Eastern Edison Company $18,741 $16,606
Blackstone Valley Electric Company 10,448 9,524
Montaup Electric Company 10,522 10,759
Newport Electric Corporation 5,249 4,938
EUA Cogenex Corporation 1,269 1,291
Eastern Utilities Associates 232 257
EUA Ocean State Corporation 191 167
EUA Energy Investment Corporation 415 248
------- -------
$47,067 $43,790
======= =======
G. Pensions:
The Company participates with other EUA System companies in a
non-contributory defined benefit pension plan covering substantially all
of their employees. Retirememt plan benefits are based on years of
service and average compensation over the four years prior to
retirement. It is the EUA System's policy to fund the retirement 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, including amounts related to the
1995 voluntary retirement incentive offer, amounted to $2,356,826 for
1995 and $1,664,226 for 1994 including the following components:
1995 1994
Service cost - benefits earned during
the period $1,005,627 $1,180,230
Plus (less):
Interest cost on projected
benefit obligation 2,568,673 2,422,236
Actual return on assets (6,747,876) 281,397
Net amortization and deferrals 4,608,628 (2,219,637)
Voluntary Retirement Incentive 921,774
---------- ----------
Total pension cost $2,356,826 $1,664,226
========== ==========
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 8.25% in 1995 and 7.25% in 1994 and
4.75% in 1995 and 1994, respectively. The expected long-term rate of
return of plan assets in 1995 and 1994 was 9.50%.
The discount rate used to determine pension costs changed effective
January 1, 1996 to 7.25% and was used to calculate the plans funded
status at December 31, 1995. 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 voluntary retirement incentive offer also resulted in approximately
$582,000 of non-qualified pension benefits which were expensed and
billed to affiliates in 1995. At December 31, 1995 approximately
$562,000 is included in other liabilities for these unfunded benefits.
*NEW PAGE*
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
EUA also maintains non-qualified supplemental retirement plans for
certain officers of the EUA System (Supplemental Plans). Benefits
provided under the Supplemental Plans are based primarily on compensation
at retirement date. EUA maintains life insurance on the participants of
the Supplemental Plans to fund in whole, or in part, its future
liabilities under the Supplemental Plans. For the years ending December
31, 1995 and 1994 expenses related to the supplemental plan were
approximately $1.3 million and $0.5 million respectively. The company
bills out these costs to its affiliates as part of its operating costs
and therefore the Supplemental Plans do not have a significant impact on
the company's results of operations.
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 in
1995 and 1994.
*NEW PAGE*
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
The total cost of post-retirement benefits other than pensions for 1995
and 1994 includes the following components (in thousands):
1995 1994
Service cost $ 338 $ 517
Interest cost 875 1,017
Actual return on plan assets (312) (69)
Amortization of transition obligation 540 583
Other amortization and deferrals-net (18) (51)
Voluntary retirement incentive 432
------ ------
Total post-retirement benefit cost $1,855 $1,997
====== ======
Assumptions:
Discount rate 8.25% 7.25%
Health care cost trend rate-near-term 11.00% 13.00%
Health care cost trend rate-long-term 5.00% 5.00%
Salary increase rate 4.75% 4.75%
Rate of return on plan assets - non union 5.50% 5.50%
1995 1994
Reconciliation of funded status:
Accumulated post retirement benefit obligation
(APBO):
Retirees $ (4,466) $ (3,447)
Active employees fully eligible for benefits (2,013) (1,967)
Other active employees (6,823) (7,207)
--------- ---------
Total $(13,302) (12,621)
Fair value of assets, primarily notes & bonds 5,375 3,902
Unrecognized transition obligation 9,175 10,509
Unrecognized net (gain) loss (1,356) (1,541)
--------- ---------
Prepaid post retirement benefit cost $( 108) $ 249
========= =========
The discount rate used to determine post retirement benefit costs was
changed effective January 1, 1996 to 7.25% and was used to calculate the
funded status of post-retirement benefits at December 31, 1995.
Increasing the assumed health care cost trend rate by 1% each year would
increase the total post-retirement benefit cost for 1995 by approximately
$ 0.2 million and increase the total accumulated post-retirement benefit
obligation by approximately $ 1.9 million.
*NEW PAGE*
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
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
$1,498,209 and $1,904,004 during 1995 and 1994 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, 1994. 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, 1995 unused short-term lines of credit amounted
to $111 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. The company had no
short-term borrowings outstanding at year end.
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, 1995 are as follows:
Carrying Fair
Amount Value
Cash and Temporary Cash Investments $ 254 $ 254
Long-Term Debt 12,300 13,884
*NEW PAGE*
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
L. Commitments and Contingencies:
The Company has been assessed, and paid in 1988 and 1989, 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 the Company received approximately $709,000 in 1993
representing 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's position and
filed an appeal with the Appellate tax board on May 5, 1993. On June 7,
1995 a motion to dismiss filed by the Massachusetts Commissioner of
Revenue was denied. This matter will most likely come to trial in 1996
and the outcome is uncertain at this time.
*NEW PAGE*
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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 47,066,951 43,790,029
458 Services rendered to nonassociate companies 521,404 643,327
421.1 Miscellaneous income 4,200 4,610
47,592,555 44,437,966
Total Income
EXPENSE
920 Salaries and wages 26,256,280 23,096,035
921 Office supplies and expenses 1,763,066 1,604,000
922 Administrative expense transferred - credit 370 0
923 Outside services employed 1,223,084 2,453,975
924 Property insurance 37,121 53,825
925 Injuries and damages 440,004 521,076
926 Employee pension and benefits 9,364,369 6,941,267
928 Regulatory commission expense 0 0
930.1 General advertising expenses 0 0
930.2 Miscellaneous general expenses 552,665 658,796
931 Rents 1,683,351 2,758,233
935 Maintenance of structure and equipment 994,123 1,028,154
403 Depreciation and amortization expense 1,152,119 1,397,250
408 Taxes other than income taxes 2,354,107 2,057,260
409 Income taxes 7,354 (1,096,849)
410 Provision for deferred income taxes 94,839 1,055,207
411 Provision for deferred income taxes - credit 0 0
419.0 Other interest income (3,447) (2,847)
419.1 Capitalized Interest - Equity (4,446) 0
421.0 Misc. non-operating income billed (16,030) (36,660)
426.3 Penalties 3,261 815
426.5 Other deductions 30 4,200
427 Interest on long-term debt 1,254,600 1,479,000
428 Amort. debt discount and expense 31,056 22,714
431 Other interest expense 14,960 20,901
432 Capitalized Interest - Borrowed (14,396) 0
Total Expense 47,188,440 44,016,352
Net Income 404,115 421,614
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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. 9,186,995 1,193,102 67,583 10,447,680
Eastern Utilities Associates 199,928 31,138 759 231,825
Montaup Electric Company 9,435,953 1,021,668 64,134 10,521,755
Eastern Edison Company 16,373,705 2,239,273 128,967 18,741,945
EUA Cogenex Corporation (Includes Divisions) 1,090,235 172,438 6,378 1,269,051
EUA Energy Investment Corp. 399,323 15,356 570 415,249
EUA Ocean State Corporation 166,655 23,321 640 190,616
Newport Electric Corporation 4,648,117 567,652 33,060 5,248,829
Total 41,500,911 5,263,948 302,091 47,066,950
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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 4,680 782 5,462
Taunton Municipal Lighting - Cust. Acct. 77,400 30,287 107,687 132,073 239,760
Taunton Municipal Lighting - A/P 2,600 932 3,532 6,353 9,885
Great Bay Power 906 1,344 2,250 0 2,250
West Center Street Realty - Land 19,004 0 19,004 13,756 32,760
Ocean State Power - NEPOOL Activities 26,490 3,383 29,873 0 29,873
Ocean State Power - Data Link 20,400 0 20,400 15,795 36,195
Middleboro - SCADA Software 1,980 0 1,980 2,770 4,750
Pascoag - SCADA Services 3,598 0 3,598 971 4,569
North Attleboro - Meter Testing 0 0 0 0 0
General Non-Affiliated Activity 72,718 0 72,718 (72,718) 0
Interconnect (Halifax & E. B'Water) (2,916) 0 (2,916) (1,959) (4,875)
Transcapacity 144,031 13,098 157,129 0 157,129
Transcapacity Rental Space 3,646 0 3,646 0 3,646
TOTAL 374,537 49,044 423,581 97,823 521,404
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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 25,334,565 781,708 26,116,273
921 OFFICE SUPPLIES AND EXPENSES 1,154,581 577,587 1,732,168
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 370 0 370
923 OUTSIDE SERVICES EMPLOYED 935,814 243,680 1,179,494
924 PROPERTY INSURANCE 37,063 0 37,063
925 INJURIES AND DAMAGES 440,009 (1) 440,008
926 EMPLOYEE PENSIONS AND BENEFITS 9,102,032 224,895 9,326,927
928 REGULATORY COMMISSION EXPENSE 0 0 0
930.1 GENERAL ADVERTISING EXPENSE 0 0 0
930.2 MISC. GENERAL EXPENSE 550,457 2,208 552,665
931 RENTS 833,089 807,353 1,640,442
935 MAINTENANCE 834,737 149,915 984,652
403 DEPRECIATION 0 1,145,872 1,145,872
405 AMORTIZATION 0 0 0
408 TAXES OTHER THAN INCOME TAXES 2,278,194 62,087 2,340,281
409 INCOME TAXES 0 48,832 48,832
410 PROVISION FOR DEFERRED INCOME TAXES 0 (19,357) (19,357)
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT 0 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0
419.0 OTHER INTEREST INCOME 0 (3,447) (3,447)
421.0 MISC. NON-OPERATING INCOME BILLED 0 (16,030) (16,030)
426.3 PENALTIES 0 3,261 3,261
426.5 OTHER DEDUCTIONS 0 30 30
427 INTEREST ON LONG-TERM DEBT 0 1,228,557 1,228,557
428 AMORT. OF DEBT DISCOUNT AND EXPENSE 0 30,752 30,752
431 OTHER INTEREST EXPENSE 0 14,888 14,888
432 CAPITALIZED INTEREST 0 (14,396) (14,396)
4191. AFUDC 0 (4,446) (4,446)
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 = 41,500,911 5,263,948 46,764,859
COMPENSATION FOR USE OF EQUITY CAPITAL= 302,091 302,091
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES=
TOTAL COST OF SERVICE= 41,500,911 5,566,039 47,066,950
</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 140,007 0 140,007
921 OFFICE SUPPLIES AND EXPENSES 19,859 11,039 30,898
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 38,794 4,796 43,590
924 PROPERTY INSURANCE 58 0 58
925 INJURIES AND DAMAGES (4) 0 (4)
926 EMPLOYEE PENSIONS AND BENEFITS 37,442 0 37,442
928 REGULATORY COMMISSION EXPENSE 0 0 0
930.1 GENERAL ADVERTISING EXPENSE 0 0 0
930.2 MISC. GENERAL EXPENSE 0 0 0
931 RENTS 24,164 18,745 42,909
935 MAINTENANCE 8,947 524 9,471
403 DEPRECIATION 436 5,811 6,247
405 AMORTIZATION 0 0 0
408 TAXES OTHER THAN INCOME TAXES 13,147 679 13,826
409 INCOME TAXES (41,478) 0 (41,478)
410 PROVISION FOR DEFERRED INCOME TAXES 114,196 0 114,196
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 18,822 7,221 26,043
428 AMORT. OF DEBT DISCOUNT AND EXPENSE 148 156 304
431 OTHER INTEREST EXPENSE (1) 73 72
432 CAPITALIZED INTEREST 0 0 0
4191. AFUDC 0 0 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 = 374,537 49,044 423,581
COMPENSATION FOR USE OF EQUITY CAPITAL= 0 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES= 0
TOTAL COST OF SERVICE= 374,537 49,044 423,581
</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 25,474,572 781,708 26,256,280
921 OFFICE SUPPLIES AND EXPENSES 1,174,440 588,626 1,763,066
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 370 0 370
923 OUTSIDE SERVICES EMPLOYED 974,608 248,476 1,223,084
924 PROPERTY INSURANCE 37,121 0 37,121
925 INJURIES AND DAMAGES 440,005 (1) 440,004
926 EMPLOYEE PENSIONS AND BENEFITS 9,139,474 224,895 9,364,369
928 REGULATORY COMMISSION EXPENSE 0 0 0
930.1 GENERAL ADVERTISING EXPENSE 0 0 0
930.2 MISC. GENERAL EXPENSE 550,457 2,208 552,665
931 RENTS 857,253 826,098 1,683,351
935 MAINTENANCE 843,684 150,439 994,123
403 DEPRECIATION 436 1,151,683 1,152,119
405 AMORTIZATION 0 0 0
408 TAXES OTHER THAN INCOME TAXES 2,291,341 62,766 2,354,107
409 INCOME TAXES (41,478) 48,832 7,354
410 PROVISION FOR DEFERRED INCOME TAXES 114,196 (19,357) 94,839
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT 0 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0
419.0 OTHER INTEREST INCOME 0 (3,447) (3,447)
421.0 MISC. NON-OPERATING INCOME BILLED 0 (16,030) (16,030)
426.3 PENALTIES 0 3,261 3,261
426.5 OTHER DEDUCTIONS 0 30 30
427 INTEREST ON LONG-TERM DEBT 18,822 1,235,778 1,254,600
428 AMORT. OF DEBT DISCOUNT AND EXPENSE 148 30,908 31,056
431 OTHER INTEREST EXPENSE (1) 14,961 14,960
432 CAPITALIZED INTEREST 0 (14,396) (14,396)
419.1 AFUDC 0 (4,446) (4,446)
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 = 41,875,448 5,312,992 47,188,440
COMPENSATION FOR USE OF EQUITY CAPITAL= 0 302,091 302,091
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES= 0 0 0
TOTAL COST OF SERVICE= 41,875,448 5,615,083 47,490,531
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
SCHEDULE XVI
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
TOTAL DEPARTMENT OR SERVICE FUNCTION
DESCRIPTION OF ITEMS AMOUNT OVERHEAD 105 110-111 115 120'S
<S> <C> <C> <C> <C> <C> <C> <C>
920 Salaries and Wages 26,256,280 112,943 742,028 273,511 567,161
921 Office Supplies and Expenses 1,763,066 1,078 25,716 9,586 18,307
922 Adm. Expense Transferred-Credit 370 0 0 0 0
923 Outside Services Employed 1,223,084 0 0 722 0
924 Property Insurance 37,121 0 0 0 0
925 Injuries and Damages 440,004 0 0 0 0
926 Employee Pension and Benefits 9,364,369 0 0 0 0
928 Regulatory Commission Expense 0 0 0 0 0
930.1 General Advertising Expense 0 0 0 0 0
930.2 Misc. General Expense 552,665 0 10 8,302 1,366
931 Rents 1,683,351 0 6,416 0 891
935 Maintenance 994,123 1,967 358 0 0
403 Depreciation 1,152,119 884 4,554 12,036 2,066
405 Amortization 0 0 0 0 0
408 Taxes Other Than Income Taxes 2,354,107 29,138 30,521 22,645 39,262
409 Income Taxes 7,354 0 0 0 0
410 Provision for Def. Income Taxes 94,839 0 0 0 0
411 Prov. for Def. Income Taxes-Credit 0 0 0 0 0
411.5 Investment Tax Credit (3,447) 0 0 0 0
419.0 Other Interest Income (4,446) 0 0 0 0
421.0 Misc Non-Operating Income Billed (16,030) (250) 0 (14,641) 0
426.3 Penalties 3,261 0 0 0 0
426.5 Other Deductions 30 0 0 0 0
427 Interest on Long-Term Debt 1,254,600 0 4,693 16,297 24,605
428 Amort. of Debt Discount and Exp 31,056 0 94 478 183
431 Other Interest Expense 14,960 8 117 157 248
432 Capitalized Interest (14,396) 0 0 0 0
INSTRUCTION: Indicate each department or
service function. (See instruction 01-3 General
Structure of Accounting System: Uniform System
of Accounts.)
TOTAL EXPENSES = 47,188,440 145,768 814,507 329,093 654,089
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
SCHEDULE XVI
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
DESCRIPTION OF ITEMS 130'S 210 215-220 230, 235 240 260'S
<S> <C> <C> <C> <C> <C> <C> <C>
920 Salaries and Wages 2,938,756 137,530 737,412 286,265 58,444 1,929,545
921 Office Supplies and Expenses 119,033 4,555 64,466 20,181 20,091 53,614
922 Adm. Expense Transferred-Credit 0 0 0 0 0 0
923 Outside Services Employed 131,813 8,813 22,317 24,339 1,312 44,485
924 Property Insurance 0 0 0 37,121 0 0
925 Injuries and Damages (4) 0 0 440,693 0 0
926 Employee Pension and Benefits (119) 19,564 9,315,129 485 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 66,153 221 110,698 5,740 2,208 9,526
931 Rents 632,552 744 1,044 1,677 304,481 12,233
935 Maintenance 646,584 0 33 520 0 41,070
403 Depreciation 149,381 883 27,903 7,480 1,756 77,011
405 Amortization 0 0 0 0 0 0
408 Taxes Other Than Income Taxes 252,024 6,999 71,833 22,102 4,970 153,771
409 Income Taxes 0 0 0 0 0 0
410 Provision for Deferred Income Taxes 0 0 0 0 0 0
411 Prov. for Def. 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 172,025 0 49,817 14,264 0 101,958
428 Amort. of Debt Discount and Exp 4,734 0 1,085 225 0 2,843
431 Other Interest Expense 1,738 31 517 146 62 1,026
432 Capitalized Interest 0 0 0 0 0 0
INSTRUCTION: Indicate each department or
service function. (See instruction 01-3 General
Structure of Accounting System: Uniform System
of Accounts.)
TOTAL EXPENSES = 5,114,670 179,340 10,402,254 861,238 393,324 2,427,082
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
SCHEDULE XVI
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
DESCRIPTION OF ITEMS 270'S 280 305,310 315-325 360'S 372
<S> <C> <C> <C> <C> <C> <C> <C>
920 Salaries and Wages 482,951 462,913 327,115 182,026 887,232 1,322,612
921 Office Supplies and Expenses 29,299 48,250 22,006 11,221 28,664 20,483
922 Adm. Expense Transferred-Credit 0 0 0 0 0 0
923 Outside Services Employed 0 0 59,885 0 0 60,396
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 0 128 17,459 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 1,287 0 1,614 1,135 7,215 3,455
931 Rents 8,136 4,939 9,355 0 14,190 1,045
935 Maintenance 0 123 45 0 3,837 0
403 Depreciation 1,938 16,735 12,997 10,154 40,229 19,845
405 Amortization 0 0 0 0 0 0
408 Taxes Other Than Income Taxes 34,393 34,461 26,854 15,289 72,715 114,979
409 Income Taxes 0 0 0 0 0 0
410 Provision for Deferred Income Taxes 0 0 0 0 0 0
411 Provision for Def. 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 25,065 21,461 18,582 12,036 53,746 0
428 Amort. of Debt Discount and Exp 187 577 436 328 1,412 0
431 Other Interest Expense 242 216 188 121 542 687
432 Capitalized Interest 0 0 0 0 0 0
INSTRUCTION: Indicate each department or
service function. (See instruction 01-3 General
Structure of Accounting System: Uniform System
of Accounts.)
TOTAL EXPENSES = 583,498 589,675 479,205 249,769 1,109,782 1,543,502
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
SCHEDULE XVI
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
DESCRIPTION OF ITEMS 410-418 420-424 426-433 440'S 450'S 525
<S> <C> <C> <C> <C> <C> <C> <C>
920 Salaries and Wages 1,112,300 1,390,583 2,594,045 2,371,485 850,230 36,288
921 Office Supplies and Expenses 62,969 46,446 74,904 62,477 562,586 353
922 Adm. Expense Transferred-Credit 0 0 0 0 0 0
923 Outside Services Employed 394,832 30,486 141,208 38,135 242,367 0
924 Property Insurance 0 0 0 0 0 0
925 Injuries and Damages 0 0 0 0 (1) 0
926 Employee Pension and Benefits 0 0 0 0 29,673 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 272,467 14,900 6,712 3,064 0 0
931 Rents 11,243 33,396 429,141 37,152 96,827 566
935 Maintenance 7,907 40,463 0 17,083 150,073 16
403 Depreciation 12,961 51,181 131,957 132,579 61,851 130
405 Amortization 0 0 0 0 0 0
408 Taxes Other Than Income Taxes 68,586 110,919 212,508 198,571 318,396 2,771
409 Income Taxes 0 0 7,354 0 0 0
410 Provision for Deferred Income Taxes 0 0 94,839 0 0 0
411 Provision for Def. Income Taxes-Credit 0 0 0 0 0 0
411.5 Investment Tax Credit 0 0 (3,447) 0 0 0
419.0 Other Interest Income 0 0 0 0 (4,446) 0
421.0 Misc Non-Operating Income Billed 0 0 (39) 0 0 0
426.3 Penalties 0 0 3,261 0 0 0
426.5 Other Deductions 0 0 0 0 0 0
427 Interest on Long-Term Debt 0 71,270 155,325 203,031 63,589 0
428 Amort. of Debt Discount and Exp 0 1,959 4,435 5,381 1,545 0
431 Other Interest Expense 443 723 1,810 1,969 632 17
432 Capitalized Interest 0 0 0 0 (14,396) 0
INSTRUCTION: Indicate each department or
service function. (See instruction 01-3 General
Structure of Accounting System: Uniform System
of Accounts.)
TOTAL EXPENSES = 1,943,708 1,792,326 3,854,013 3,070,927 2,358,926 40,141
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
SCHEDULE XVI
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
DESCRIPTION OF ITEMS 560 565 570'S 581-585 586, 587
<S> <C> <C> <C> <C> <C> <C>
920 Salaries and Wages 169,339 88,220 2,819,391 1,286,607 597,208
921 Office Supplies and Expenses 4,916 19,236 63,633 38,103 48,700
922 Adm. Expense Transferred-Credit 0 0 0 0 0
923 Outside Services Employed 0 3,765 0 5,111 7,409
924 Property Insurance 0 0 0 0 0
925 Injuries and Damages 0 0 (681) (3) 0
926 Employee Pension and Benefits 0 0 (17,904) (46) 0
928 Regulatory Commission Expense 0 0 0 0 0
930.1 General Advertising Expense 0 0 0 0 0
930.2 Misc. General Expense 0 0 16,340 11,189 6,885
931 Rents 9,959 0 10,398 36,952 4,470
935 Maintenance 2,084 0 3,887 68,197 4,299
403 Depreciation 1,002 1,756 93,271 242,083 24,669
405 Amortization 0 0 0 0 0
408 Taxes Other Than Income Taxes 11,022 7,794 223,619 112,276 48,981
409 Income Taxes 0 0 0 0 0
410 Provision for Deferred Income Taxes 0 0 0 0 0
411 Provision for Def. Income Taxes-Credit 0 0 0 0 0
411.5 Investment Tax Credit 0 0 0 0 0
419.0 Other Interest Income 0 0 0 0 0
421.0 Misc Non-Operating Income Billed 0 0 0 0 0
426.3 Penalties 0 0 0 0 0
426.5 Other Deductions 0 0 0 0 0
427 Interest on Long-Term Debt 0 0 151,379 5,757 32,728
428 Amort. of Debt Discount and Exp 0 0 3,253 281 839
431 Other Interest Expense 48 62 1,502 766 319
432 Capitalized Interest 0 0 0 0 0
INSTRUCTION: Indicate each department or
service function. (See instruction 01-3 General
Structure of Accounting System: Uniform System
of Accounts.)
TOTAL EXPENSES = 198,370 319,203 3,368,088 1,807,273 776,507
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
SCHEDULE XVI
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
DESCRIPTION OF ITEMS 588 600'S
<S> <C> <C> <C>
920 Salaries and Wages 152,062 1,340,078
921 Office Supplies and Expenses 241,772 40,421
922 Adm. Expense Transferred-Credit 0 370
923 Outside Services Employed 2,977 2,712
924 Property Insurance 0 0
925 Injuries and Damages 0 0
926 Employee Pension and Benefits 0 0
928 Regulatory Commission Expense 0 0
930.1 General Advertising Expense 0 0
930.2 Misc. General Expense 0 2,178
931 Rents 2,513 13,031
935 Maintenance 0 5,577
403 Depreciation 6,527 6,300
405 Amortization 0 0
408 Taxes Other Than Income Taxes 12,136 94,572
409 Income Taxes 0 0
410 Provision for Deferred Income Taxes 0 0
411 Provision for Def. Income Taxes-Credit 0 0
411.5 Investment Tax Credit 0 0
419.0 Other Interest Income 0 0
421.0 Misc Non-Operating Income Billed 0 (1,100)
426.3 Penalties 0 0
426.5 Other Deductions 0 30
427 Interest on Long-Term Debt 9,197 47,775
428 Amort. of Debt Discount and Exp 247 534
431 Other Interest Expense 93 530
432 Capitalized Interest 0 0
INSTRUCTION: Indicate each department or
service function. (See instruction 01-3 General
Structure of Accounting System: Uniform System
of Accounts.)
TOTAL EXPENSES = 427,524 1,553,008
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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 112,943 0 112,943 0 0
110-111 Executive Admin. &
Support 742,028 9,700 732,328 0 4
115 Internal Audit 273,511 1,926 271,585 0 5
120's Consumer Service 567,161 0 567,161 0 14
130's Information Systems 2,938,756 7,135 2,909,034 22,587 54
210 Admin. Support -
Corporate 137,530 2,974 134,556 0 1
215-220 Human Resources/
Emp. Benefits 737,412 4,281 729,163 3,968 19
230 .2 Safety and
Occupational
Health 286,265 1,524 284,741 0 7
240 Office Services -
Boston 58,444 0 58,444 0 2
260's Corporate Planning
/C&LM/PWR Mgmt. 1,929,545 0 1,912,631 16,914 32
270's Marketing Services 482,951 0 482,951 0 16
280 Strategic Studies 462,913 0 378,319 84,594 7
305, 31 Executive Admin &
Support/Corp.
Comm. 327,115 2,859 321,667 2,589 7
315-325 Corporate
Communications 182,026 338 181,629 59 4
360's Matls. Mgmt/Stores/
Purchasing 887,232 0 887,232 0 18
372 System Operations 1,322,612 0 1,322,612 0 21
410-418 Financial/Treasury
Services 1,112,300 14,687 1,097,387 226 14
420-424 Rate Admin/Load
Research 1,390,583 0 1,390,583 0 22
426-433 Comptroller/Acctng. 2,594,045 30,724 2,558,032 5,289 51
440's Customer Service 2,371,485 5 2,371,480 0 76
450's Bldg & Facilities-WB 850,230 0 847,271 2,959 25
525 Transmission Lines 36,288 0 36,288 0 1
560 Eng. & Oper Admin
& Support 169,339 0 169,339 0 2
565 Central Meter Test 88,220 0 88,220 0 2
570's Engineering 2,819,391 0 2,819,391 0 62
581-585 S & C / Substation /
Radio/ Microwave
Stds. 1,286,607 0 1,286,607 0 23
586-587 Environmental Eng. 597,208 0 596,569 639 12
588 Telecommunications 152,062 124 151,755 183 3
600's Admin. & Support 1,340,078 0 1,340,078 0 33
TOTAL 26,256,280 76,277 26,039,996 140,007 537
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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 236,082
Boston, MA 02109
Various (2) NA 6,687
---------
242,769
---------
Outside Services - Accounting
Coopers and Lybrand One International Place NA 58,560
Boston, MA 02107
Various (2) NA 55
---------
58,615
---------
Outside Services - E.D.P.
---------
Various (18) NA 97,959
---------
Outside Services - Building
and Maintenance
Contract Cleaning Collaborative 41 Columbian Street NA 73,699
Weymouth, MA 02190
First Security Services One Harborside Drive NA 118,558
Boston, MA 02128
Various (24) NA 52,890
---------
245,147
---------
Outside Services - Engineering
---------
Various (2) NA 3,968
---------
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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 34,519
Canton, MA 02021
Cambridge Reports, Inc. 955 Massachusetts Avenue NA 51,480
Cambridge, MA 02139
J. Flanagan and Co. 26 Colonial Avenue NA 45,000
Waltham, MA 02154
DRI McGraw-Hill 24 Hartwell Ave. NA 28,997
Lexington, MA 02173
Newport Electric Corp. 12 Turner Road A 50,999
Middletown, R.I. 02840-0011
Media Concepts Corporation 25 North Main Street NA 109,372
Assonet, MA 02702-1136
Twenty First Century 760 Northlawn Drive, Suite 200 NA 30,135
Columbus, OH 43214
AUC Management Consultants 6800 Riverside Drive NA 27,520
Vancouver, WA 98664
Various (69) NA 196,604
---------
574,626
---------
Total Outside Services Employed 1,223,084
=========
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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) 171,024
Employee Education Reimbursement (9260-03) 63,626
Employee Publications (9260-04) 16,793
Life Insurance (9260-12 to 9260-19) 234,119
Group Health including FAS 106 (9260-10/9260-22 TO 9260-39) 3,877,003
Company Match/Employee Savings Plan (9260-40 to 9260-43) 583,360
Pension Plan (9260-51 to 9260-58) 4,263,478
Miscellaneous (Service Recognition, Employee Exams 154,966
and Employee related programs)
TOTAL 9,364,369
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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, 1995
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 8,998
SEC Filing Fees 2,875
Corporate and Fiscal Expenses Including Investor Relations 93,915
Transfer Agent Fees and Expenses 100,826
Employee Training and Seminars 262,737
Printing and Distribution of Quarterly and Annual Reports 48,516
Miscellaneous 34,798
TOTAL 552,665
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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 287,360
Brockton MA, Office Facility 14,835
Lincoln RI, Office Facility 407,849
Total Building Rents 710,044
Data Processing and Other Equipment Rents 973,307
TOTAL 1,683,351
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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 153,769
Rhode Island Unemployment Tax 26,239
Job Development Tax (Rhode Island) 1,831
Property Tax 250,043
Health Insurance Tax - Massachusetts 8,255
Miscellaneous 23,159
463,296
U.S. Government Tax:
FICA 1,858,841
Federal Unemployment Tax 31,970
1,890,811
2,354,107
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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, 1995
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 Thorny Lea Golf Club 30
TOTAL 30
</TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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.
<TABLE>
ANNUAL REPORT OF EUA SERVICE CORPORATION
ORGANIZATION CHART
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C><C> <C>
Chief Executive Officer
|
|
|________________________________________________________________________
| |
| ________|______
Chief Operating Officer | | |
| | | |
| | | |
| | Treasurer |
____________________________________|__________________________________________________________ | Corporate |
| | | | | Secretary |
| | | | | | |
| | | | | | |
Executive V.P. Executive V.P | | Special | Audit
Administration Operations | | Projects |
| | | | |
__________|_______________ _________|___________ | | |
| | | | | | |
Senior V.P. | V.P. V.P. V.P. V.P. |
Marketing | Technical Services Field Operations Power Supply Comptroller |
| | | | | | |
| | | | | | |
| | | | | | |
Rates Info Systems Systems Operations Trans. & Distribution Planning Accounting Treasury
Consumer Services Purchasing Engineering Fleet Garage Power Mgt. Reporting Financial Serv.
Marketing Services Cust. Info. Services Substation & Control Safety Load Forecast General Model
Legislative Affairs Human Resources Facilities Mgt. Material Mgt. Somerset Budget Invest. Relations
Corporate Communications NEPool
J.O. Units
</TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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, 1995
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, 1995:
<S> <C> <C>
Blackstone Valley Electric Company $67,583
Montaup Electric Company 64,134
EUA Energy Investment Corporation 570
Eastern Edison Company 128,967
Eastern Utilities Associates 759
EUA Cogenex Corporation 6,378
EUA Ocean State Corporation 640
Newport Electric Corporation 33,060
TOTAL 302,091
</TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1995
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/ Robert G. Powderly
(Signature of Signing Officer)
Robert G. Powderly, Executive Vice President
(Printed Name and Title of Signing Officer)
Date: April 29, 1996
<TABLE> <S> <C>
<ARTICLE> OPUR2
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<BOOK-VALUE> PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 21391
<TOTAL-INVESTMENTS> 0
<TOTAL-CURRENT-ASSETS> 10075
<TOTAL-DEFERRED-DEBITS> 2272
<OTHER-ASSETS-AND-DEBITS> 0
<TOTAL-ASSETS-AND-DEBITS> 33738
<TOTAL-PROPRIETARY-CAPITAL> 3858
<TOTAL-LONG-TERM-DEBT> 11200
<NOTES-PAYABLE> 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 0
<OTHER-CURR-AND-ACCRUED-LIAB> 4920
<TOTAL-DEFERRED-CREDITS> 12025
<DEFERRED-INCOME-TAX> 1735
<TOT-LIABIL-AND-PROPRIET-CAP> 33738
<SERVICES-ASSOCIATE-COMPANIES> 47067
<SERVICES-NON-ASSOCIATE-COMP> 521
<MISC-INCOME-OR-LOSS> 4
<TOTAL-INCOME> 47592
<SALARIES-AND-WAGES> 26256
<EMPLOYEE-PENSION-AND-BENEFIT> 9364
<OTHER-EXPENSES> 11568
<TOTAL-EXPENSES> 47188
<NET-INCOME> 404
<TOTAL-EXPENSES-DIRECT-COST> 41875
<TOTAL-EXPENSES-INDIRECT-COST> 5313
<TOT-EXP-DIRECT-AND-INDIRECT> 47188
<PERSONNEL-END-OF-YEAR> 537
</TABLE>
