Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1996 and Ending December 31, 1996
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
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, 1996
CURRENT PRIOR
SERVICE COMPANY PROPERTY
<S> <C> <C> <C>
101 Service company property (Schedule II) 32,924,212 30,410,487
101.1 Property under capital leases - Net 2,049,104 1,107,222
[Page 19C Footnote D]
107 Construction work in progress (Schedule II) 133,826 1,425,389
Total Property 35,107,142 32,943,098
111 & Less accumulated provision for depreciation
108 and amortization of service company
property (Schedule III) 12,719,559 11,551,876
Net Service Company Property 22,387,583 21,391,222
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 1,769
134 Special deposits 40,925 40,925
135 Working funds 19,826 11,605
136 Temporary cash investments (Schedule IV) 4,025,000 200,000
141 Notes receivable 0 0
143 Accounts receivable 699,882 567,345
144 Accumulated provision of uncollectible accounts 0 0
146 Accounts receivable from associate
companies (Schedule V) 4,738,260 8,696,603
152 Fuel stock expenses undistributed (Schedule VI) 0 0
154 Materials and supplies 50,823 54,559
163 Stores expense undistributed (Schedule VII) 1,678 2,461
165 Prepayments 585,853 499,590
171 Interest Receivable 601 109
174 Misc Current and Accrued Assets (Schedule VIII) 0 0
Total Current and Accrued Assets 10,164,617 10,074,966
DEFERRED DEBITS
181 Unamortized debt expense 84,396 112,118
182.3 Other regulatory assets 180,699 202,598
184 Clearing accounts 0 0
186 Miscellaneous deferred debits (Schedule IX) 818,291 1,637,358
188 Research, development, or demonstration
expenditures (Schedule X) 0 0
190 Accumulated deferred income taxes 208,286 319,492
Total Deferred Debits 1,291,672 2,271,566
TOTAL ASSETS AND OTHER DEBITS 33,843,872 33,737,754
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA SERVICE CORPORATION
SCHEDULE I - COMPARATIVE BALANCE SHEET
<CAPTION>
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31, 1996
CURRENT PRIOR
PROPRIETARY CAPITAL
<S> <C> <C> <C>
201 Common stock issued (Schedule XI) 1,000 1,000
211 Miscellaneous paid-in-capital (Schedule XI) 2,500,000 3,500,000
215 Appropriated retained earnings (Schedule XI)
216 Unappropriated retained earnings (Schedule XI) 719,835 356,832
Total Proprietary Capital 3,220,835 3,857,832
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII)
2240.1 Other long-term debt (Schedule XII) 9,000,000 11,200,000
225 Unamortized premium on long-term debt
226 Unamortized discount on long-term debt-debit
Total Long-Term Debt 9,000,000 11,200,000
227 Obligations under capital leases - non current 1,188,957 547,956
CURRENT AND ACCRUED LIABILITIES
2240.2 Current Maturities - Long-Term Debt 1,100,000 1,100,000
231 Notes payable
232 Accounts payable 883,757 1,802,317
233 Notes payable to associate companies
(Schedule XIII)
234 Accounts payable to associate companies
(Schedule XIII) 529,267 178,806
236 Taxes accrued 5,687 10,149
237 Interest accrued 522,968 635,168
238 Dividends declared
241 Tax collections payable 1,659 4,160
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 68,708 82,283
243 Obligations under capital leases - current 860,147 559,266
Total Current and Accrued Liabilities 3,972,193 4,372,149
DEFERRED CREDITS
253 Other deferred credits 14,746,052 12,006,932
254 Regulatory liabilities 13,128 17,400
255 Accumulated deferred investment tax credits
Total Deferred Credits 14,759,180 12,024,332
282 & 283 ACCUMULATED DEFERRED INCOME TAXES 1,702,707 1,735,485
TOTAL LIABILITIES & PROPRIETARY CAPITAL 33,843,872 33,737,754
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA SERVICE CORPORATION
For the Year Ended December 31, 1996
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 1,482,247 216,976 0 0 1,699,223
304 LAND & LAND RIGHTS 717,080 0 0 0 717,080
305 STRUCTURES AND
IMPROVEMENTS 16,353,721 1,701,316 25,000 0 18,030,037
306 LEASEHOLD 542,449 0 0 0 542,449
IMPROVEMENTS
307 EQUIPMENT 2/ 7,761,089 95,974 0 0 7,857,063
308 OFFICE FURNITURE
AND EQUIPMENT 3,544,861 524,459 0 0 4,069,320
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 30,410,487 2,538,725 25,000 32,924,212
107 CONSTRUCTION
WORK IN
PROGRESS 4/ 1,425,389 0 0 1,291,563 133,826
TOTAL 31,835,876 2,538,725 25,000 (1,291,563) 33,058,038
</TABLE>
BALANCE
NET AT CLOSE
SUBACCOUNT DESCRIPTION ADDITIONS OF YEAR
110 Cellular Phone Equipment 0 2,731
131 Word Processing Equipment 0 16,572
133 Data Processing Equipment 0 1,367,948
120 Consumer Service Equipment 5,522 5,522
240 Office Services Equipment 0 450
310 Employee Communication/Visual Aids Equipment 0 71,013
325 Community Relations Equipment 2,441 2,441
364 Purchasing/Material Management Equipment 0 111,199
372 Energy Management Equipment 0 26,201
417 Treasury Department Equipment 0 20,117
422 Rate and Revenue Research Equipment 0 49,554
427 Accounting Systems Equipment 0 1,736
441 Customer & Consumer Service Equipment 0 218,761
452 West Bridgewater Building Equipment 9,590 57,011
565 Meter Testing Equipment 1,753 83,488
572 Electrical Systems Equipment 53,809 53,809
574 Engineering Equipment 0 179,218
582/5 Substation/Communication Equipment 0 586,510
583 Radio/Microwave Equipment 17,061 17,061
610 Transmission & Distribution Equipment 798 798
650 URD Line Equipment 5,000 5,000
000 Microwave Equipment 0 4,979,923
TOTAL 95,974 7,857,063
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
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:
3/ DESCRIBE OTHER SERVICE COMPANY PROPERTY:
NONE
3/ DESCRIBE CONSTRUCTION WORK IN PROGRESS:
CSS Regulation Upgrade 103,563
Overhead Line Training Facility 28,963
Office Furniture & Equipment 1,330
-----------
TOTAL 133,856
===========
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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 1,269,977 110,797 0 0 1,380,774
304 LAND AND LAND RIGHTS 0 0 0 0
305 STRUCTURES AND
IMPROVEMENTS 3,182,190 430,422 25,000 (24,557) 3,563,055
306 LEASEHOLD
IMPROVEMENTS 542,448 0 0 0 542,448
307 EQUIPMENT 4,595,805 483,382 0 0 5,079,187
308 OFFICE FURNITURE
AND FIXTURES 1,961,456 192,639 0 0 2,154,095
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
11,551,876 1,217,240 25,000 (24,557) 12,719,559
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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. 200,000 4,025,000
TOTAL 200,000 4,025,000
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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. 572,389 747,369
Eastern Utilities Associates 3,503,880 34,094
Montaup Electric Company 1,134,728 828,490
Eastern Edison Company 2,220,375 2,469,220
EUA Cogenex Corporation (Incl. Divisions) 449,655 171,120
EUA Energy Investment Corporation 42,682 22,683
EUA Ocean State Corporation 42,682 19,346
Newport Electric Corporation 744,534 427,375
EUA Transcapacity 4,533 8,554
EUA Bioten 0 9,879
EUA Energy Services 0 130
TOTAL ACCOUNTS RECEIVABLE 8,715,458 4,738,260
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
TOTAL
Analysis by Company: PAYMENTS
Blackstone Valley Electric Co. 1,821,024
Eastern Utilities Associates 95,820
Montaup Electric Company 1,228,362
Eastern Edison Company 4,721,517
EUA Cogenex Corporation (Including Divisions) 366,920
EUA Energy Investment Corporation 18,794
EUA Ocean State Corporation 5,392
Newport Electric Corporation 657,208
EUA Transcapacity 174
TOTAL PAYMENTS 8,915,211
</TABLE>
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>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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, 1996
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 23,531 23,531
Blackstone Valley Electric 0 (3,560) (3,560)
Montaup Electric Company 0 (8,132) (8,132)
Eastern Edison Company 0 (6,790) (6,790)
Newport Electric Corporation 0 (3,371) (3,371)
TOTAL 0 1,678 1,678
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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, 1996
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 14,825 12,557
MFT Assessment 577,047 590,128
Grantor Trust Assets 1,031,000 0
Retrospective Insurance Adjustment 12,443 0
Post -Retirement Benefits Other Than Pensions 0 208,362
Miscellaneous Deferred Debits (4) 2,043 7,243
TOTAL 1,637,358 818,290
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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, 1996
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 $2,500,000
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS
(1) See Schedule XIV Notes to Financial Statements, Page 19C.
TOTAL $2,500,000
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 356,832 363,003 0 719,835
TOTAL 356,832 363,003 0 719,835
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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 11,200,000 0 2,200,000 9,000,000
TOTAL 2,008 10.20% 20,000,000 11,200,000 0 2,200,000 9,000,000
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, 1996
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. 89,114 63,535
Montaup Electric Co. 3,310 1,102
Eastern Edison Company 12,650 381,749
Eastern Utilities Associates 0 959
Cogenex 24,440 76,220
Newport Electric Corporation 49,292 5,702
TOTAL 178,806 529,267
ACCOUNT 242 - MISCELLANEOUS CURRENT AND
ACCRUED LIABILITIES
Insurance Reserve 61,113 39,305
Commitment Fees Accrued 2,365 2,103
Flexible Spending 18,805 27,300
Miscellaneous 0 0
TOTAL 82,283 68,708
</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 non-affiliated companies
and 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.
The company allocates to its affiliated companies the profits generated from
performance of services to non-affiliated companies and other miscellaneous
revenues. These profits are 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 1996 there were no non-affiliated
profits, thus the equity return billed to affiliated companies was not
adjusted. In 1995 $202,471 of non-affiliated profits was utilized to reduce the
level of equity return billed to affiliated companies.
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.
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 4.0% in 1996 and 1995 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.
Depreciation expense related to real property and equipment totaled $1,217,240
and $1,152,119 for 1996 and 1995 respectively. Amortization expense for
equipment and vehicles under capital leases totaled $844,031 and $534,864 for
1996 and 1995 respectively.
Deferred Debits
The components of deferred debits at December 31, 1996 and 1995 are detailed as
follows (in thousands):
1996 1995
Regulatory Assets:
Deferred SFAS 109 costs (Note B) $ 181 $ 203
Other deferred charges and assets:
MFT Assessment (Note L) 590 577
Unamortized debt expense 84 112
Q Grantor Trust Assets 1,031
SFAS 106 208
Other 20 29
Total other deferred charges and assets 902 1,749
$1,083 $1,952
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 $877 is included in Other
income and was allocated to affiliated companies. The interest portion of
$2,569 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.
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
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.
Income Taxes
In accordance with the EUA System's tax allocation agreement, the general
policy of the Company with respect to accounting for federal and state 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.
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
B. Income Taxes:
Components of income tax expense (credit) for the years 1996 and 1995 are as
follows:
(in thousands)
1996 1995
Federal:
Current $ 220 $ (1)
Deferred 37 36
257 35
State:
Current 11 8
Deferred 59 59
Total income
tax expense $ 327 $ 102
Total income tax expense was different from the amounts computed by applying
federal income tax statutory rates to book income subject to tax, for the
following reasons:
(in thousands)
1996 1995
Federal income tax computed at statutory rates $ 242 $177
Increases (decreases) in tax from:
Prior period tax adjustments (29)
Non-taxable return from affiliates (106)
Depreciation differences 4 4
State taxes, net of federal income
tax benefit 70 67
Other 11 (11)
Total income tax expense $ 327 $ 102
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 requires 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, 1996 and 1995 no valuation allowance was deemed necessary for
total deferred tax assets. Total deferred tax assets and liabilities for 1996
and 1995 are comprised as follows:
(in thousands)
Deferred Tax Deferred Tax
Assets Liabilities
1996 1995 1996 1995
Plant related differences $1,522 $1,608
Alternative minimum tax
State net operating loss
carry forward $186 $246
Computer licensing agreement 80
Other 24 31 183 165
Total $210 $357 $1,705 $1,773
The Company has approximately $2.0 million 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 1996 is $1,100,000 for each of the years
1997 through 2001.
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 equipment, office equipment and vehicles.
The following is an analysis of the leased property under capital leases as of
December 31,
(in thousands)
1996 1995
Equipment $3,764 $2,446
Less accumulated amortization (1,715) (1,339)
Net leased equipment $2,049 $1,107
The following is a schedule of approximate future minimum lease payment
commitments for capital and noncancelable leases as of December 31, 1996:
(in thousands)
Capital Operating
Years ending December 31: Leases Leases
1997 $ 987 $1,367
1998 624 1,296
1999 396 1,081
2000 256 418
2001 29 7
After 2001 4
Total future minimum lease payments $2,296 $4,169
Less interest 247
Present value of net minimum lease
payments $2,049
Total rent expense for operating leases (in thousands) was $1,625 and $1,669
for 1996 and 1995, respectively.
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, 1996 and 1995. During 1996 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, 1996 and 1995,
is as follows:
(in thousands)
1996 1995
Eastern Edison Company $23,031 $18,741
Blackstone Valley Electric Company 11,923 10,448
Montaup Electric Company 7,855 10,522
Newport Electric Corporation 6,195 5,249
EUA Cogenex Corporation 1,146 1,269
Eastern Utilities Associates 243 232
EUA Ocean State Corporation 182 191
EUA Energy Investment Corporation 355 415
EUA Energy Services Incorporated 6
EUA Transcapacity 5
EUA Bioten 10
$50,951 $47,067
G. Pensions:
The Company participates with other EUA System companies in a non-contributory
defined benefit pension plan covering substantially all of their employees.
Retirement 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.
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
The Company's total pension expense (including amounts related to the 1995
voluntary retirement incentive offer) amounted to $2,209,531 for 1996 and
$2,356,826 for 1995 including the following components:
(in thousands)
1996 1995
Service cost - benefits earned during
the period $1,626 $1,006
Plus (less):
Interest cost on projected
benefit obligation 3,644 2,569
Actual (return) on assets (4,142) (6,748)
Net amortization and deferrals 1,082 4,608
Voluntary Retirement Incentive 922
Total pension expense $2,210 $2,357
The discount rate and rate of increase in future compensation levels used in
determining pension obligations were 7.25% in 1996 and 8.25% in 1995 and 4.25%
in 1996 and 4.75% in 1995, respectively. The expected long-term rate of return
on plan assets in 1996 and 1995 was 9.50%.
The discount rate used to determine pension obligations, changed effective
January 1, 1997 to 7.5% and was used to calculate the plan's funded status at
December 31, 1996. The funded status of the plan cannot be presented
separately for the Company as it participates in the plan with other
subsidiaries of EUA.
The one-time voluntary retirement incentive offer also resulted in
approximately $582,000 of non-qualified pension benefits which were expensed
and billed to affiliates in 1995. The balance, which is included in other
liabilities for these unfunded benefits, amounted to approximately $518,000 and
$562,000 for 1996 and 1995 respectively.
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. As of December 31, 1996, approximately $4.0 million is included
as a liability in other deferred credits for these plans. For the years
ending December 31, 1996 and 1995 the Company's portion of expenses related
to the supplemental plan were approximately $1.1 million and $1.3 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.
The Company also provides a defined contribution 401(k) savings plan for
substantially all employees. The Company's matching percentage of employees'
voluntary contribution to the plan, amounted to $667,264 and $577,607 in 1996
and 1995 respectively. The company bills out these costs to its affiliates
and therefore the savings plan does not have a significant impact on the
company's result 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. The Company 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
$1.7 million and $1.9 million in 1996 and 1995 respectively.
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
The total cost of post-retirement benefits other than pensions (including
amounts related to the 1995 voluntary retirement incentive offer) for 1996 and
1995 includes the following components:
(in thousands)
1996 1995
Service cost $ 513 $ 338
Interest cost 1,163 875
Actual return on plan assets 3 (312)
Amortization of transition obligation 540 540
Other amortization and deferrals-net (544) (18)
Voluntary retirement incentive 432
Total post-retirement benefit cost $1,675 $1,855
Assumptions:
Discount rate 7.25% 8.25%
Health care cost trend rate-near-term 9.00% 11.00%
Health care cost trend rate-long-term 5.00% 5.00%
Salary increase rate 4.25% 4.75%
Rate of return on plan assets - non union 7.50% 5.50%
(in thousands)
Reconciliation of funded status:
1996 1995
Accumulated post retirement benefit obligation
(APBO):
Retirees $ (5,360) $ (4,466)
Active employees fully eligible for benefits (2,003) (2,013)
Other active employees (9,079) (6,823)
Total $(16,442) $(13,302)
Fair value of assets, primarily notes & bonds 7,004 5,375
Unrecognized transition obligation 8,635 9,175
Unrecognized net loss (gain) 1,058 (1,356)
Prepaid (accrued) post
retirement benefit cost $ 255 $ (108)
The discount rate used to determine post retirement benefit obligations changed
January 1, 1997 to 7.5% and was used to calculate the funded status of post-
retirement benefits at December 31, 1996.
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
Increasing the assumed health care cost trend rate by 1% each year would
increase the total post-retirement benefit cost for 1996 by approximately $ 0.3
million and increase the total accumulated post-retirement benefit obligation
by approximately $2.5 million.
The Company has also established an irrevocable external Voluntary Employee
Benefit Association Trust Fund for non-union retirees. Contributions to the
fund commenced in March 1993 and totaled $2,038,670 and $1,498,209 during 1996
and 1995 respectively.
I. Lines of Credit:
The EUA System companies, which includes the Company, maintain short-term lines
of credit with various banks aggregating approximately $140 million. At
December 31, 1996 unused short-term lines of credit amounted to $89 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.
J. Fair Value of Financial Instruments:
The following methods and assumptions were used to estimate the fair value of
each class of financial instruments for which it is practicable to estimate:
Cash and Temporary Cash Investments: The carrying amount approximates fair
value because of the short-term maturity of those instruments.
Long-term Debt: The fair value of the Company's long-term debt were based on
quoted market prices for securities of similar investment grade and general
character.
The estimated fair value of the company's financial instruments at December 31,
1996 are as follows (in thousands):
Carrying Fair
Amount Value
Cash and Temporary Cash Investments $ 4,088 $ 4,088
Long-Term Debt 10,100 10,585
EUA SERVICE CORPORATION
NOTES TO FINANCIAL STATEMENTS, Continued
K. Commitments and Contingencies:
The Company was assessed by the Massachusetts Department of Revenue (DOR)
approximately $750,000 in additional taxes and interest in connection with an
audit of the Company's state tax returns for the years 1985 and 1986. The
Company paid the assessment and interest in March 1989. 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.
In February of 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 an abatement of the additional tax assessed for that year.
In the same notification, the DOR took 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, 1996 a motion to dismiss filed
by the Massachusetts Commissioner of Revenue was denied.
In March 1997 the Company and the Commissioner reached a settlement agreement
whereby the Commissioner abated the assessments for the years 1985 and 1986 in
full and refunded to the Company the $750,000 paid plus interest accumulated
through the refund date. In exchange the company withdrew its appeal of the
Commissioner's refusal to abate the assessments on file with the Appellate Tax
Board.
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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 50,951,471 47,066,951
458 Services rendered to nonassociate companies 881,739 521,404
421.1 Miscellaneous income 4,200 4,200
Total Income 51,837,410 47,592,555
EXPENSE
920 Salaries and wages 29,921,364 26,256,280
921 Office supplies and expenses 2,219,557 1,763,066
922 Administrative expense transferred - credit 0 370
923 Outside services employed 1,478,097 1,223,084
924 Property insurance 40,434 37,121
925 Injuries and damages 235,044 440,004
926 Employee pension and benefits 8,814,519 9,364,369
930.1 General advertising expenses 508 0
930.2 Miscellaneous general expenses 573,251 552,665
931 Rents 1,839,726 1,683,351
935 Maintenance of structure and equipment 1,030,344 994,123
403 Depreciation and amortization expense 1,217,240 1,152,119
408 Taxes other than income taxes 2,542,812 2,354,107
409 Income taxes 230,954 7,354
410 Provision for deferred income taxes 96,054 94,839
419.0 Other interest income (11,155) (3,447)
419.1 AFUDC - Equity (876) (4,446)
421.0 Misc. non-operating income billed (3,203) (16,030)
426.1 Donations 1,000 0
426.3 Penalties 347 3,261
426.5 Other deductions 178,074 30
427 Interest on long-term debt 1,030,175 1,254,600
428 Amort. debt discount and expense 27,697 31,056
431 Other interest expense 15,012 14,960
432 AFUDC- Debt (2,568) (14,396)
Total Expenses Billed 51,474,407 47,188,440
Total Expenses 51,474,407 47,188,440
Net Income 363,003 404,115
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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. 10,489,725 1,352,248 80,812 11,922,785
Eastern Utilities Associates 212,044 30,282 453 242,779
Montaup Electric Company 6,969,091 810,601 75,472 7,855,164
Eastern Edison Company 20,241,275 2,628,967 160,462 23,030,704
EUA Cogenex Corp. (Inc. Divisions) 978,922 159,784 7,422 1,146,128
EUA Energy Investment Corp. 334,065 18,991 1,748 354,804
EUA Ocean State Corporation 160,737 20,320 1,328 182,385
Newport Electric Corporation 5,500,174 639,059 55,962 6,195,195
EUA Energy Services Incorporated 6,293 0 0 6,293
EUA Transcapacity Corporation 5,354 0 0 5,354
EUA Bioten Corporation 9,880 0 0 9,880
Total 44,907,560 5,660,252 383,659 50,951,471
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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 - Cust. Acct. 25,484 8,929 34,413 65,687 100,100
Transcapacity 29,857 1,444 31,301 0 31,301
Bioten Partnership - Construction 146,943 7,330 154,273 0 154,273
Tank Farm #4 - Bid Proposal 3,363 150 3,513 (80) 3,433
Tank Farm #4 - Design & Engineering 133,253 211 133,464 (17,716) 115,748
Portsmouth Boat - Design & Engineering 6,183 16 6,199 602 6,801
Bioten Partnership - Marketing 65,453 3,303 68,756 0 68,756
Bioten Partnership - General Support 110,041 4,555 114,596 0 114,596
Cumberland School - Bid Proposal 776 42 818 (818) 0
Cumberland School - Construction 15,891 25 15,916 6,252 22,168
Main St. Pawtucket Street Light - Bid Proposal 1,731 112 1,843 (1,843) 0
Anchorage Housing Navy - Bid Proposal 300 21 321 0 321
Anchorage Housing Navy - Construction 16,288 0 16,288 0 16,288
MCI Bridgewater - Construction 11,006 35 11,041 (2,759) 8,282
Communications Tower Rentals 19,840 1,744 21,584 (21,584) 0
West Center Street Realty - Land 18,321 0 18,321 14,439 32,760
Taunton Municipal Lighting - Data Link 4,681 0 4,681 780 5,461
Ocean State Power - NEPOOL Activities 11,718 1,800 13,518 0 13,518
Ocean State Power - Data Link 24,547 0 24,547 11,649 36,196
Middleboro - SCADA Software 2,933 0 2,933 1,816 4,749
Pascoag - SCADA Services 3,598 0 3,598 971 4,569
Duke Louis Dreyfus 128,994 13,006 142,000 419 142,419
General Non-Affiliated Activity 82,671 0 82,671 (82,671) 0
TOTAL 863,872 42,723 0 906,595 (24,856) 881,739
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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 28,639,482 935,704 29,575,186
921 OFFICE SUPPLIES AND EXPENSES 1,514,713 621,662 2,136,375
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 1,102,888 329,904 1,432,792
924 PROPERTY INSURANCE 40,434 0 40,434
925 INJURIES AND DAMAGES 234,713 276 234,989
926 EMPLOYEE PENSIONS AND BENEFITS 8,456,496 271,076 8,727,572
928 REGULATORY COMMISSION EXPENSE 0 0 0
930.1 GENERAL ADVERTISING EXPENSE 508 0 508
930.2 MISC. GENERAL EXPENSE 571,109 2,142 573,251
931 RENTS 1,020,280 799,411 1,819,691
935 MAINTENANCE 880,317 145,300 1,025,617
403 DEPRECIATION 0 1,209,347 1,209,347
405 AMORTIZATION 0 0 0
408 TAXES OTHER THAN INCOME TAXES 2,446,620 70,191 2,516,811
409 INCOME TAXES 0 263,375 263,375
410 PROVISION FOR DEFERRED INCOME TAXES 0 (18,413) (18,413)
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT 0 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0
419.0 OTHER INTEREST INCOME 0 (11,155) (11,155)
421.0 MISC. NON-OPERATING INCOME BILLED 0 (3,203) (3,203)
426.1 DONATIONS 0 1,000 1,000
426.3 PENALTIES 0 347 347
426.5 OTHER DEDUCTIONS 0 200 200
427 INTEREST ON LONG-TERM DEBT 0 1,004,144 1,004,144
428 AMORT. OF DEBT DISCOUNT AND EXPENSE 0 27,462 27,462
431 OTHER INTEREST EXPENSE 0 14,926 14,926
432 AFUDC - DEBT 0 (2,568) (2,568)
4191. AFUDC - EQUITY 0 (876) (876)
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 = 44,907,560 5,660,252 50,567,812
COMPENSATION FOR USE OF EQUITY CAPITAL= 383,659 383,659
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES=
TOTAL COST OF SERVICE= 44,907,560 6,043,911 50,951,471
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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 346,178 0 346,178
921 OFFICE SUPPLIES AND EXPENSES 72,816 10,366 83,182
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 40,416 4,889 45,305
924 PROPERTY INSURANCE 0 0 0
925 INJURIES AND DAMAGES 55 0 55
926 EMPLOYEE PENSIONS AND BENEFITS 86,947 0 86,947
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 10,944 9,091 20,035
935 MAINTENANCE 4,050 677 4,727
403 DEPRECIATION 0 7,893 7,893
405 AMORTIZATION 0 0 0
408 TAXES OTHER THAN INCOME TAXES 24,948 1,053 26,001
409 INCOME TAXES (32,421) 0 (32,421)
410 PROVISION FOR DEFERRED INCOME TAXES 114,467 0 114,467
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
426.1 DONATIONS 0 0
426.3 PENALTIES 0 0 0
426.5 OTHER DEDUCTIONS 177,874 0 177,874
427 INTEREST ON LONG-TERM DEBT 17,469 8,562 26,031
428 AMORT. OF DEBT DISCOUNT AND EXPENSE 129 106 235
431 OTHER INTEREST EXPENSE 0 86 86
432 AFUDC - DEBT 0 0 0
4191. AFUDC -EQUITY 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 = 863,872 42,723 906,595
COMPENSATION FOR USE OF EQUITY CAPITAL=
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES=
TOTAL COST OF SERVICE= 863,872 42,723 906,595
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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 28,985,660 935,704 29,921,364
921 OFFICE SUPPLIES AND EXPENSES 1,587,529 632,028 2,219,557
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CREDIT 0 0 0
923 OUTSIDE SERVICES EMPLOYED 1,143,304 334,793 1,478,097
924 PROPERTY INSURANCE 40,434 0 40,434
925 INJURIES AND DAMAGES 234,768 276 235,044
926 EMPLOYEE PENSIONS AND BENEFITS 8,543,443 271,076 8,814,519
928 REGULATORY COMMISSION EXPENSE 0 0 0
930.1 GENERAL ADVERTISING EXPENSE 508 0 508
930.2 MISC. GENERAL EXPENSE 571,109 2,142 573,251
931 RENTS 1,031,224 808,502 1,839,726
935 MAINTENANCE 884,367 145,977 1,030,344
403 DEPRECIATION 0 1,217,240 1,217,240
405 AMORTIZATION 0 0 0
408 TAXES OTHER THAN INCOME TAXES 2,471,568 71,244 2,542,812
409 INCOME TAXES (32,421) 263,375 230,954
410 PROVISION FOR DEFERRED INCOME TAXES 114,467 (18,413) 96,054
411 PROVISION FOR DEFERRED INCOME TAXES-CREDIT 0 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0
419.0 OTHER INTEREST INCOME 0 (11,155) (11,155)
421.0 MISC. NON-OPERATING INCOME BILLED 0 (3,203) (3,203)
426.1 DONATIONS 0 1,000
426.3 PENALTIES 0 347 347
426.5 OTHER DEDUCTIONS 177,874 200 178,074
427 INTEREST ON LONG-TERM DEBT 17,469 1,012,706 1,030,175
428 AMORT. OF DEBT DISCOUNT AND EXPENSE 129 27,568 27,697
431 OTHER INTEREST EXPENSE 0 15,012 15,012
432 AFUDC- DEBT 0 (2,568) (2,568)
419.1 AFUDC- EQUITY 0 (876) (876)
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 = 45,771,432 5,702,975 51,474,407
COMPENSATION FOR USE OF EQUITY CAPITAL= 383,659 383,659
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES= 0 0
TOTAL COST OF SERVICE= 45,771,432 6,086,634 51,858,066
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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 29,921,364 132,217 636,607 238,911 891,646
921 Office Supplies and Expenses 2,219,557 14,734 27,308 10,329 43,245
922 Administrative Expense Transfer 0 0 0 0 0
923 Outside Services Employed 1,478,097 20,027 0 1,202 2,490
924 Property Insurance 40,434 0 0 0 0
925 Injuries and Damages 235,044 (1) 0 0 0
926 Employee Pension and Benefits 8,814,519 (158) 0 0 0
928 Regulatory Commission Expense 0 0 0 0 0
930.1 General Advertising Expense 508 0 0 0 0
930.2 Misc. General Expense 573,251 115 0 4,057 2,084
931 Rents 1,839,726 3,982 8,599 0 7,054
935 Maintenance 1,030,344 718 3,949 351 1,552
403 Depreciation 1,217,240 2,281 4,137 9,034 28,558
405 Amortization 0 0 0 0 0
408 Taxes Other Than Income Taxes 2,542,812 9,436 37,819 18,670 69,285
409 Income Taxes 230,954 0 0 0 0
410 Provision for Deferred Income Taxes 96,054 0 0 0 0
411 Provision for Def Income Taxes-Credit 0 0 0 0 0
419.0 Other Interest Income (11,155) 0 0 0 0
419.1 AFUDC - Equity Funds (876) 0 0 0 0
421.0 Misc Non-Operating Income (3,203) 0 0 (3,203) 0
426.1 Donations 1,000 0 0 0 0
426.3 Penalties 347 0 0 0 0
426.5 Other Deductions 178,074 0 0 0 200
427 Interest on Long-Term Debt 1,030,175 0 2,118 10,054 31,773
428 Amort. of Debt Discount and Exp 27,697 0 56 279 849
431 Other Interest Expense 15,012 16 52 82 261
432 AFUDC- Debt (2,568) 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 = 51,474,407 183,367 720,645 289,766 1,078,997
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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 2,822,223 126,175 831,245 408,837 59,360 1,770,534
921 Office Supplies and Expenses 164,119 1,707 79,069 29,472 23,346 75,322
922 Administrative Expense Transfer 0 0 0 0 0 0
923 Outside Services Employed 81,811 7,194 127,524 14,446 321 38,601
924 Property Insurance 0 0 0 40,434 0 0
925 Injuries and Damages 0 0 0 235,155 0 0
926 Employee Pension and Benefits 0 67,119 8,701,468 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 29,157 0 98,912 6,628 2,142 13,409
931 Rents 708,630 691 4,958 11,941 323,344 10,304
935 Maintenance 591,224 0 0 2,908 0 46,517
403 Depreciation 116,472 1,822 32,394 12,762 1,798 51,099
405 Amortization 0 0 0 0 0 0
408 Taxes Other Than Income Taxes 237,543 6,902 66,286 33,226 5,036 139,475
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
419.0 Other Interest Income 0 0 0 0 0 0
419.1 AFUDC - Equity Funds 0 0 0 0 0 0
421.0 Misc Non-Operating Income 0 0 0 0 0 0
426.1 Donations 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 112,980 0 37,775 16,412 0 60,015
428 Amort. of Debt Discount and Exp 3,046 0 1,016 408 0 1,672
431 Other Interest Expense 929 17 310 135 35 533
432 AFUDC - Debt
INSTRUCTION: Indicate each department or
service function. (See instruction 01-3 General
Structure of Accounting System: Uniform System
of Accounts.)
TOTAL EXPENSES = 4,868,134 211,627 9,980,957 812,764 415,382 2,207,481
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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 866,405 558,069 214,247 304,193 874,255 1,241,363
921 Office Supplies and Expenses 62,269 99,868 22,314 13,227 27,764 22,128
922 Administrative Expense Transfer 0 0 0 0 0 0
923 Outside Services Employed 73,809 0 64,004 0 2,967 14,621
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 0 10,205 0 0
928 Regulatory Commission Expense 0 0 0 0 0 0
930.1 General Advertising Expense 508 0 0 0 0 0
930.2 Misc. General Expense 40,664 698 40 1,673 2,614 2,553
931 Rents 33,080 3,285 7,180 0 13,941 1,551
935 Maintenance 0 10,616 90 0 1,550 0
403 Depreciation 26,505 13,903 13,538 7,766 32,559 18,969
405 Amortization 0 0 0 0 0 0
408 Taxes Other Than Income Taxes 69,359 40,955 17,159 25,448 70,968 105,186
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
419.0 Other Interest Income 0 0 0 0 0 0
419.1 AFUDC - Equity Funds 0 0 0 0 0 0
421.0 Misc Non-Operating Income 0 0 0 0 0 0
426.1 Donations 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 33,542 17,122 8,997 13,953 38,128 0
428 Amort. of Debt Discount and Exp 903 454 353 267 1,019 0
431 Other Interest Expense 276 141 74 115 313 366
432 AFUDC-Debt 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 = 1,207,320 745,111 347,996 376,847 1,066,078 1,406,737
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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 1,043,988 1,336,554 2,461,756 3,277,833 1,099,279 63,757
921 Office Supplies and Expenses 58,917 77,868 67,168 57,915 613,377 1,848
922 Administrative Expense Transfer 0 0 0 0 0 0
923 Outside Services Employed 474,205 2,903 169,290 286 333,815 0
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 (94) 0 0 40,717 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 296,838 10,675 7,637 2,184 45 0
931 Rents 3,704 61,100 362,074 (17,878) 136,737 2,963
935 Maintenance 42,517 47,358 22,937 0 145,772 705
403 Depreciation 12,619 39,976 90,587 138,149 48,943 918
405 Amortization 0 0 0 0 0 0
408 Taxes Other Than Income Taxes 69,832 105,037 209,266 275,199 247,610 5,518
409 Income Taxes 0 0 230,954 0 0 0
410 Provision for Deferred Income Taxes 0 0 96,054 0 0 0
411 Provision for Def Income Taxes-Credit 0 0 0 0 0 0
419.0 Other Interest Income 0 0 (11,155) 0 0 0
419.1 AFUDC - Equity Funds 0 0 0 0 (876) 0
421.0 Misc Non-Operating Income 0 0 0 0 0 0
426.1 Donations 1,000 0 0 0 0 0
426.3 Penalties 0 0 347 0 0 0
426.5 Other Deductions 0 0 0 0 0 0
427 Interest on Long-Term Debt 0 46,587 102,561 183,916 55,950 0
428 Amort. of Debt Discount and Exp 0 1,245 2,769 4,840 1,437 0
431 Other Interest Expense 247 383 6,080 1,512 460 17
432 AFUDC-Debt 0 0 0 0 (2,568) 0
INSTRUCTION: Indicate each department or
service function. (See instruction 01-3 General
Structure of Accounting System: Uniform System
of Accounts.)
TOTAL EXPENSES = 2,003,867 1,729,592 3,818,325 3,923,956 2,720,698 75,726
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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 174,835 92,410 3,933,024 1,213,086 718,866
921 Office Supplies and Expenses 9,256 16,191 112,008 41,675 49,357
922 Administrative Expense Transfer 0 0 0 0 0
923 Outside Services Employed 63 1,627 8,025 2,430 32,861
924 Property Insurance 0 0 0 0 0
925 Injuries and Damages 0 0 (110) 0 0
926 Employee Pension and Benefits 0 0 (4,709) (29) 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 1,565 601 17,362 13,061 14,421
931 Rents 180 558 45,599 42,170 9,966
935 Maintenance 730 0 24,118 53,891 4,846
403 Depreciation 4,639 1,798 121,573 315,550 16,029
405 Amortization 0 0 0 0 0
408 Taxes Other Than Income Taxes 10,275 8,085 303,667 105,874 58,004
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
419.0 Other Interest Income 0 0 0 0 0
419.1 AFUDC - Equity Funds 0 0 0 0 0
421.0 Misc Non-Operating Income 0 0 0 0 0
426.1 Donations 0 0 0 0 0
426.3 Penalties 0 0 0 0 0
426.5 Other Deductions 0 0 177,874 0 0
427 Interest on Long-Term Debt 0 0 151,902 0 26,823
428 Amort. of Debt Discount and Exp 0 0 3,597 0 690
431 Other Interest Expense 31 35 1,246 402 220
432 AFUDC-Debt 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 = 201,574 121,305 4,895,176 1,788,110 932,083
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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 140,537 2,389,152
921 Office Supplies and Expenses 297,187 100,569
922 Administrative Expense Transfer 0 0
923 Outside Services Employed 3,575 0
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 4,116
931 Rents 3,935 50,078
935 Maintenance 0 27,995
403 Depreciation 5,987 46,875
405 Amortization 0 0
408 Taxes Other Than Income Taxes 11,131 180,561
409 Income Taxes 0 0
410 Provision for Deferred Income Taxes 0 0
411 Provision for Def Income Taxes-Credit 0 0
419.0 Other Interest Income 0 0
419.1 AFUDC - Equity Funds 0 0
421.0 Misc Non-Operating Income 0 0
426.1 Donations 0 0
426.3 Penalties 0 0
426.5 Other Deductions 0 0
427 Interest on Long-Term Debt 5,825 73,742
428 Amort. of Debt Discount and Exp 166 2,631
431 Other Interest Expense 48 676
432 AFUDC-Debt 0 0
INSTRUCTION: Indicate each department or
service function. (See instruction 01-3 General
Structure of Accounting System: Uniform System
of Accounts.)
TOTAL EXPENSES = 468,391 2,876,395
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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 132,217 9,560 81,772 40,885 1
110-111 Executive Admin. &
Support 636,607 0 636,607 0 3
115 Internal Audit 238,911 1,584 237,327 0 5
120's Consumer Service 891,646 0 891,646 0 15
130's Information Systems 2,822,223 6,940 2,810,892 4,391 53
210 Admin. Support -
Corporate 126,175 1,163 125,012 0 1
215-220 Human Resources/
Emp. Benefits 831,245 3,692 827,336 217 17
230 .2 Safety and
Occupational
Health 408,837 3,728 405,109 0 8
240 Office Services -
Boston 59,360 0 59,360 0 2
260's Corporate Planning
/C&LM/PWR Mgmt. 1,770,534 0 1,730,338 40,196 29
270's Marketing Services 866,405 0 843,735 22,670 16
280 Strategic Studies 558,069 0 345,130 212,939 8
305, 31 Executive Admin &
Support/Corp.
Comm. 214,247 2,012 212,235 0 4
315-325 Corporate
Communications 304,193 274 303,919 0 7
360's Matls. Mgmt/Stores/
Purchasing 874,255 0 874,255 0 18
372 System Operations 1,241,363 0 1,241,363 0 21
410-418 Financial/Treasury
Services 1,043,988 9,161 1,033,604 1,223 15
420-424 Rate Admin/Load
Research 1,336,554 0 1,336,554 0 22
426-433 Comptroller/Acctng. 2,461,756 28,016 2,431,743 1,997 50
440's Customer Service 3,277,833 4 3,277,829 0 87
450's Bldg & Facilities-WB 1,099,279 2,119 1,091,567 5,593 27
525 Transmission Lines 63,757 0 63,757 0 1
560 Eng. & Oper Admin
& Support 174,835 0 174,835 0 3
565 Central Meter Test 92,410 0 92,410 0 2
570's Engineering 3,933,024 0 3,917,250 15,774 74
581-585 S & C / Substation /
Radio/ Microwave
Stds. 1,213,086 0 1,213,086 0 23
586-587 Environmental Eng. 718,866 0 718,573 293 13
588 Telecommunications 140,537 72 140,465 0 2
600's Admin. & Support 2,389,152 0 2,389,152 0 41
TOTAL 29,921,364 68,325 29,506,861 346,178 568
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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 $100,000, 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 DESCRIPTION ASSOCIATE
<S> <S> <S> <C>
Outside Services - Legal
McDermott, Will and Emery Legal Services NA 352,113
Various (8) NA 6,188
---------
358,301
---------
Outside Services - Accounting
Various (2) NA 66,808
---------
Outside Services - E.D.P.
Various (11) NA 54,182
---------
Outside Services - Building
and Maintenance
First Security Services Security Services NA 118,403
Various (19) NA 177,970
---------
296,373
---------
Outside Services - Engineering
Various (2) NA 1,105
---------
Outside Services - Other
Eastern Edison Company Arborist Services A 107,785
Various (86) NA 593,543
---------
701,328
---------
Total Outside Services Employed 1,478,097
=========
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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) 199,170
Employee Education Reimbursement (9260-03) 60,661
Employee Publications (9260-04) 10,205
Long Term Disability (9260-08) 83,209
Life Insurance (9260-12 to 9260-19) 230,780
Group Health including FAS 106 (9260-10/9260-22 TO 9260-39) 4,061,503
Company Match/Employee Savings Plan (9260-40 to 9260-43) 728,937
Pension Plan (9260-51 to 9260-58) 3,300,138
Miscellaneous (Service Recognition, Employee Exams 139,916
and Employee related programs)
TOTAL 8,814,519
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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
Miscellaneous 508
TOTAL 508
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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 30,592
SEC Filing Fees 7,333
Corporate and Fiscal Expenses Including Investor Relations 103,153
Transfer Agent Fees and Expenses 103,854
Employee Training and Seminars 229,622
Printing and Distribution of Quarterly and Annual Reports 50,135
Miscellaneous 48,562
TOTAL 573,251
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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 310,826
Brockton MA, Office Facility 14,511
Lincoln RI, Office Facility 343,672
Total Building Rents 669,009
Data Processing and Other Equipment Rents 1,170,717
TOTAL 1,839,726
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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 162,742
Rhode Island Unemployment Tax 23,220
Job Development Tax (Rhode Island) 1,620
Property Tax 157,437
Health Insurance Tax - Massachusetts 8,752
Miscellaneous 50,356
404,127
U.S. Government Tax:
FICA 2,105,798
Federal Unemployment Tax 32,887
2,138,685
2,542,812
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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
Various (1) 1,000
1,000
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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 American Lung Association o 100
Public Affairs U.S. Chamber of Commerce 100
Non-Affiliate Construction Billing Tank Farm #4 129,727
Non-Affiliate Construction Billing Portsmouth Boat 5,920
Non-Affiliate Construction Billing Cumberland School 15,433
Non-Affiliate Construction Billing Anchorage Housing 16,288
Non-Affiliate Construction Billing MCI Bridgewater 10,506
TOTAL 178,074
</TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C><C>
Chief Executive Officer
|
|
|________________________________________________________________________
| | |
_______|_____
Chief Operating Officer | | |
| | | |
| | | |
| | V.P. |
____________________________________|__________________________________________________________ | Finance |
| | | | | | |
| | | | | | |
| | | | | | |
Executive V.P. Executive V.P | | Special |Internal
Administration Operations | | Projects| Audit
| | | | |
| _______|__________ V.P. V.P. Treasury
| | | Power Supply Comptroller Financial
| | V.P. | | Serv.
| | Field | | Modeling
| | Operations | | Invest.
| | | | |
| | | | Accounting
| Engineering Trans. & Transmission Reporting
| Facilities Mgt. Distribution Services Budget
| Fleet & Garage Power Mgt.
_______ |________________________________________ Safety Somerset Sta.
| | | | Material Mgt. Power Resources
Senior V.P. V.P. Info V.P. System Operations
Marketing Industry Systems Human Substation &
| Restructuring Purchasing Resources Communications
| Cust. Info. Services
|
|
Rates
Consumer Services
Marketing Services
Corporate Communications
</TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
METHODS OF ALLOCATION
- --------- ---------
All costs which are not directly charged to associated companies are allocated
based on departmental allocation factors. Below is a description of the basis
used in billing indirect costs to each associated company. These allocation
bases are reviewed annually.
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 and System Transactions
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
System Support Labor Efforts
Direct Costs
Number of Telephone Calls
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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, 1996:
<S> <C> <C>
Blackstone Valley Electric Company $80,812
Montaup Electric Company 75,472
EUA Energy Investment Corporation 1,748
Eastern Edison Company 160,462
Eastern Utilities Associates 453
EUA Cogenex Corporation 7,422
EUA Ocean State Corporation 1,328
Newport Electric Corporation 55,962
TOTAL 383,659
</TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1996
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, Comptroller
(Printed Name and Title of Signing Officer)
Date: April 30, 1997
<TABLE> <S> <C>
<ARTICLE> OPUR2
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<BOOK-VALUE> PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 22387
<TOTAL-INVESTMENTS> 0
<TOTAL-CURRENT-ASSETS> 10165
<TOTAL-DEFERRED-DEBITS> 1292
<OTHER-ASSETS-AND-DEBITS> 0
<TOTAL-ASSETS-AND-DEBITS> 33844
<TOTAL-PROPRIETARY-CAPITAL> 3221
<TOTAL-LONG-TERM-DEBT> 10189
<NOTES-PAYABLE> 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 0
<OTHER-CURR-AND-ACCRUED-LIAB> 3972
<TOTAL-DEFERRED-CREDITS> 14759
<DEFERRED-INCOME-TAX> 1703
<TOT-LIABIL-AND-PROPRIET-CAP> 33738
<SERVICES-ASSOCIATE-COMPANIES> 50951
<SERVICES-NON-ASSOCIATE-COMP> 882
<MISC-INCOME-OR-LOSS> 4
<TOTAL-INCOME> 51837
<SALARIES-AND-WAGES> 29921
<EMPLOYEE-PENSION-AND-BENEFIT> 8815
<OTHER-EXPENSES> 12738
<TOTAL-EXPENSES> 51474
<NET-INCOME> 363
<TOTAL-EXPENSES-DIRECT-COST> 45771
<TOTAL-EXPENSES-INDIRECT-COST> 5703
<TOT-EXP-DIRECT-AND-INDIRECT> 51474
<PERSONNEL-END-OF-YEAR> 564
</TABLE>
