Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1999 and Ending December 31, 1999
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:
Augustine Camara Assistant Comptroller 750 West Center Street,
West Bridgewater, Ma. 02379
(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
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
<CAPTION>
Give balance sheet of the Company as of December 31 of the current and prior year.
ACCOUNT ASSETS AND OTHER DEBITS AS OF DECEMBER 31, 1999
CURRENT PRIOR
SERVICE COMPANY PROPERTY
<S> <C> <C> <C>
101 Service company property (Schedule II) 32,064,148 33,690,659
101.1 Property under capital leases - Net 819,708 949,444
[Page 19C Footnote D]
107 Construction work in progress (Schedule II) 43,907 0
Total Property 32,927,763 34,640,103
111 & Less accumulated provision for depreciation
108 and amortization of service company
property (Schedule III) 14,373,908 14,735,782
Net Service Company Property 18,553,855 19,904,321
INVESTMENTS
123 Investments in associate companies
(Schedule IV)
124 Other Investments (Schedule IV)
Total Investments 0 0
CURRENT AND ACCRUED ASSETS
131 Cash (401,400) (634,623)
134 Special deposits 20,925 40,925
135 Working funds 12,559 15,825
136 Temporary cash investments (Schedule IV) 1,130,000 3,000,000
141 Notes receivable
143 Accounts receivable 239,536 804,898
144 Accumulated provision of uncollectible accounts
146 Accounts receivable from associate
companies (Schedule V) 15,904,551 12,427,469
152 Fuel stock expenses undistributed (Schedule VI)
154 Materials and supplies 52,521 52,180
163 Stores expense undist. (Sch. VII) 2,178 3,624
165 Prepayments 139,486 167,458
171 Interest Receivable 0 0
174 Misc Current and Accrued Assets (Schedule VIII)
Total Current and Accrued Assets 17,100,356 15,877,756
DEFERRED DEBITS
181 Unamortized debt expense 30,997 42,395
182.3 Other regulatory assets 0 24,055
184 Clearing accounts
186 Miscellaneous deferred debits (Schedule IX) 3,745,018 416,156
188 Research, development, or demonstration
expenditures (Schedule X)
190 Accumulated deferred income taxes 0 5,892
Total Deferred Debits 3,776,015 488,498
TOTAL ASSETS AND OTHER DEBITS 39,430,226 36,270,575
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA SERVICE CORPORATION
SCHEDULE I - COMPARATIVE BALANCE SHEET
<CAPTION>
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31, 1999
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) 2,000,000 2,100,000
215 Appropriated retained earnings (Schedule XI)
216 Unappropriated retained earnings (Schedule XI) 657,003 456,189
Total Proprietary Capital 2,658,003 2,557,189
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII)
2240.1 Other long-term debt (Schedule XII) 4,000,000 5,100,000
225 Unamortized premium on long-term debt
226 Unamortized discount on long-term debt-debit
Total Long-Term Debt 4,000,000 5,100,000
227 Obligations under capital leases - non current 287,198 398,645
CURRENT AND ACCRUED LIABILITIES
2240.2 Current Maturities - Long-Term Debt 1,100,000 1,100,000
231 Notes payable
232 Accounts payable 385,824 438,383
233 Notes payable to associate companies
(Schedule XIII)
234 Accounts payable to associate companies
(Schedule XIII) 246,393 336,545
236 Taxes accrued 228,963 7,254
237 Interest accrued 260,100 316,200
238 Dividends declared
241 Tax collections payable 1,460 7,500
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 2,096,911 1,566,480
243 Obligations under capital leases - current 532,510 550,799
Total Current and Accrued Liabilities 4,852,161 4,323,161
DEFERRED CREDITS
253 Other deferred credits 26,420,936 22,599,657
254 Regulatory liabilities 0 3,812
255 Accumulated deferred investment tax credits
Total Deferred Credits 26,420,936 22,603,469
282 & 283 ACCUMULATED DEFERRED INCOME TAXES 1,211,928 1,288,111
TOTAL LIABILITIES & PROPRIETARY CAPITAL 39,430,226 36,270,575
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA SERVICE CORPORATION
For the Year Ended December 31, 1999
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>
SERVICE COMPANY PROPERTY
Account
301 ORGANIZATION 9,040 9,040
303 MISCELLANEOUS
INTANGIBLE PLANT 1,699,223 2,666 1,166,923 534,966
304 LAND & LAND RIGHTS 717,080 717,080
305 STRUCTURES AND
IMPROVEMENTS 18,183,289 5,907 2,000 (42,947) 18,144,249
306 LEASEHOLD 542,449 542,449 0
IMPROVEMENTS
307 EQUIPMENT (2)/ 8,444,505 114,470 2,000 42,947 8,599,922
308 OFFICE FURNITURE
AND EQUIPMENT 4,095,073 2,568 38,750 4,058,891
309 AUTOMOBILES,
OTHER VEHICLES
AND RELATED
GARAGE EQUIPMENT
310 AIRCRAFT & AIRPORT
EQUIPMENT
311 OTHER SERVICE
COMPANY
PROPERTY (3)/
SUB-TOTAL 33,690,659 125,611 1,752,122 0 32,064,148
107 CONSTRUCTION
WORK IN
PROGRESS (4)/ 43,907 43,907
TOTAL 33,690,659 169,518 1,752,122 0 32,108,055
(1)/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
</TABLE>
<TABLE>
SCHEDULE II - CONTINUED
(2)/ SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE
COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT ADDITIONS
DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR:
<CAPTION>
BALANCE
NET AT CLOSE
SUBACCOUNT DESCRIPTION ADDITIONS OF YEAR
<S> <C> <C> <C> <C>
110 Cellular Phone Equipment 2,731
131 Word Processing Equipment 16,572
133 Data Processing Equipment 1,351,994
120 Consumer Service Equipment 5,522
215 Human Resources Equipment 960
230 Occupational Health & Safety Equipment 40,403
240 Office Services Equipment 973
310 Employee Communication/Visual Aids Equipment 71,013
325 Community Relations Equipment 2,441
364 Purchasing/Material Management Equipment 111,199
372 Energy Management Equipment 20,450 46,651
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 218,761
452 West Bridgewater Building Equipment 60,362
525 Transmission 14,206 27,019
565 Meter Testing Equipment 34,225 133,788
572 Electrical Systems Equipment 83,283
573 Distribution Engineering Equipment 10,934
574 Engineering Equipment 179,218
582 Substation 6,622 11,578
584 Electronics 1,276
587 Vegetation Management Equipment 7,689
581/588 Substation/Communication Equipment 812,721
583 Radio/Microwave Equipment 36,967 88,416
610 Transmission & Distribution Equipment 798
617 OPS Training Facility Equipment 42,947 50,648
620 Line Equipment 2,048
650 URD Line Equipment 12,286
000 Telephone System Upgrade 714,908
000 Microwave Equipment (A) 4,462,323
TOTAL 155,417 8,599,922
(3)/ DESCRIBE OTHER SERVICE COMPANY PROPERTY:
NONE
(4)/ DESCRIBE CONSTRUCTION WORK IN PROGRESS:
Building Renovations 28,677
Office Furniture & Equipment 15,230
43,907
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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
303 MISCELLANEOUS
INTANGIBLE PLANT 1,632,792 43,662 1,166,923 509,531
304 LAND AND LAND RIGHTS
305 STRUCTURES AND
IMPROVEMENTS 4,468,700 454,636 2,000 4,921,336
306 LEASEHOLD
IMPROVEMENTS 542,448 542,448 0
307 EQUIPMENT 5,560,533 663,027 2,000 18 6,221,578
308 OFFICE FURNITURE
AND FIXTURES 2,531,309 206,295 38,751 22,610 2,721,463
309 AUTOMOBILES, OTHER
VEHICLES AND RELATED
GARAGE EQUIPMENT
310 AIRCRAFT AND AIRPORT
EQUIPMENT
311 OTHER SERVICE
COMPANY PROPERTY
14,735,782 1,367,620 1,752,122 22,628 14,373,908
(1)/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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. 3,000,000 1,130,000
TOTAL 3,000,000 1,130,000
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
<CAPTION>
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.
BALANCE AT BALANCE
BEGINNING AT CLOSE
D E S C R I P T I O N OF YEAR OF YEAR
<S> <C> <C> <C>
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM
ASSOCIATE COMPANIES
Blackstone Valley Electric Co. 1,287,170 1,487,046
Eastern Utilities Associates 94,753 2,303,075
Montaup Electric Company 1,714,836 489,994
Eastern Edison Company 6,881,856 8,945,218
EUA Cogenex Corporation (Including Division 175,112 75,969
EUA Energy Investment Corporation 74,350 493,049
EUA Ocean State Corporation 15,054 16,854
Newport Electric Corporation 1,970,000 2,077,834
EUA Transcapacity 12,529 0
EUA Bioten 179,824 0
EUA Energy Services 2,923 0
EUA Compression Services 2,996 0
EUA Telecommunication 554 0
RENOVA 15,512 15,512
TOTAL ACCOUNTS RECEIVABLE 12,427,469 15,904,551
</TABLE>
<TABLE>
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
<CAPTION>
TOTAL
Analysis by Company: PAYMENTS
<S> <C>
Blackstone Valley Electric Co. 1,968,435
Eastern Utilities Associates 3,272,713
Montaup Electric Company 984,577
Eastern Edison Company 5,247,489
EUA Cogenex Corporation (Including Divisions) 258,862
EUA Energy Investment Corporation 5,632
EUA Ocean State Corporation (168)
Newport Electric Corporation 990,311
EUA Transcapacity 7,487
EUA Energy Services 0
EUA Telecommunication (364)
EUA Bioten 800
TOTAL PAYMENTS 12,735,774
</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.
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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.
D E S C R I P T I O N LABOR EXPENSES TOTAL
ACCOUNT 152 - FUEL STOCK EXPENSES
UNDISTRIBUTED
NONE
TOTAL 0 0 0
SUMMARY:
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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.
D E S C R I P T I O N LABOR EXPENSES TOTAL
ACCOUNT 163 - STORES EXPENSE UNDISTRIBUTED
Stores expense incurred during year
distributed as follows: 21,618 21,618
Blackstone Valley Electric (4,419) (4,419)
Montaup Electric Company (797) (797)
Eastern Edison Company (10,604) (10,604)
Newport Electric Corporation (3,620) (3,620)
TOTAL 0 2,178 2,178
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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.
BALANCE AT BALANCE
BEGINNING AT CLOSE
D E S C R I P T I O N OF YEAR OF YEAR
ACCOUNT 174 - MISCELLANEOUS CURRENT AND
ACCRUED ASSETS
NONE
TOTAL 0 0
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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 BALANCE AT
BEGINNING CLOSE OF
D E S C R I P T I O N OF YEAR OF YEAR
<S> <C> <C>
ACCOUNT 186 -MISCELLANEOUS DEFERRED DEBITS
Post -Retirement Benefits Other Than Pensions Pre- Funding 385,796 385,796
Miscellaneous Deferred Debits (2) 9,435 88
Lawson General Ledger System-Pending Reimbursement / Bankers Leasing 20,925 0
Merger Costs 0 3,252,951
Severance Payments 0 106,183
TOTAL 416,156 3,745,018
</TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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.
D E S C R I P T I O N AMOUNT
ACCOUNT 188 - RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES
NONE
TOTAL 0
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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
COMMON
<S> <C> <C> <C> <C> <C>
201 STOCK ISSUED 5,000 $10.00 100 $1,000
</TABLE>
<TABLE>
INSTRUCTIONS: Classify amounts in each account with brief explanation, disclosing the
general nature of transactions which give rise to the reported amounts.
DESCRIPTION AMOUNT
ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL $2,000,000
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS
(1) See Schedule XIV Notes to Financial Statements, Page 19C.
TOTAL $2,000,000
<CAPTION>
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.
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 456,189 250,814 50,000 657,003
TOTAL 456,189 250,814 50,000 657,003
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
SCHEDULE XII - LONG-TERM DEBT
<CAPTION>
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.
DATE BALANCE AT BALANCE AT
CLASS & SERIES OF INTEREST AMOUNT BEGINNING 1/ CLOSE
NAME OF CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR ADDITIONS DEDUCTIONS OF YEAR
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ACCOUNT 223 -
ADVANCES
FROM
ASSOCIATE
COMPANIES
ACCOUNT 224 -
OTHER LONG- Senior
TERM DEBT Secured Note 2,008 10.20% 20,000,000 5,100,000 1,100,000 4,000,000
TOTAL 2,008 10.20% 20,000,000 5,100,000 0 1,100,000 4,000,000
1/ GIVE AN EXPLANATION OF DEDUCTIONS:
(1) Current maturities - Long-term debt due within one year $1,100,000.
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES
<CAPTION>
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.
BALANCE AT BALANCE
BEGINNING AT CLOSE
D E S C R I P T I O N OF YEAR OF YEAR
<S> <C> <C>
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES
NONE
TOTAL 0 0
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
Blackstone Valley Electric Co. 69,553 75,459
Montaup Electric Co. 623 0
Eastern Edison Company 66,727 34,374
Eastern Utilities Associates 197,682 134,802
Cogenex
Newport Electric Corporation 1,960 1,758
TOTAL 336,545 246,393
ACCOUNT 242 - MISCELLANEOUS CURRENT AND
ACCRUED LIABILITIES
Insurance Reserve 62,101 82,469
Commitment Fees Accrued (1,360) 1,000
Flexible Spending 35,347 41,955
Teaming up for Performance 1,470,392 1,615,226
PBOP FAS 106 0 356,261
TOTAL 1,566,480 2,096,911
</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 plus a
prescribed return allowed by the SE C, 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 borrowed capital, 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 bill ed to affiliated companies, in accordance with the
SEC Uniform System of Accounts general instruction. In 1999, the equity return
billed to affiliated companies was reduced by $3,000 to allocate profits
generated from services to non-affiliated companies.
Merger Update
On February 1, 1999, Eastern Utilities Associates (EUA) and New England
Electric System (NEES) announced a merger agreement under which NEES will
acquire all outstanding shares of EUA for $31 per share in cash. The merger
agreement, which is subject to the approval of various regulatory agencies,
valued EUA's equity at approximately $634 million, which represents a 23%
premium above the price of EUA shares on December 4, 1998, the last trading
day before other regional merger announcements affected EUA's share price.
EUA shareholders will continue to receive dividends at the current level, as
declared by the Board of Trustees, until the closing of the merger.
The closing of the merger is expected to occur by April 2000. The
merger agreement contains an upward price adjustment if the merger does not
close within six months from May 17, 1999, the date EUA shareholders approved
the merger plan. Therefore, beginning November 17, 1999, NEES will pay an
additional $0.003 per day per share for EUA's outstanding common stock until
the merger closes, up to a maximum price of $31.495 per share. If, as
expected, the merger closes by March 31, 2000, t he price paid for EUA shares
would be $31.405 per share.
On July 19, 1999, a Voluntary Early Retirement Program (VERP) was
offered to certain of EUA's and NEES's employees who have completed at least
ten years of service and will be at least fifty-five years of age by December
31, 2000. The VERP allows an eligible employee to retire and receive enhanced
pension benefits. The VERP offer was accepted by 82% of eligible employees.
An eligible employee may only retire after the merger closes under the VERP.
On October 12, 1999, details of a Severance Plan were distributed. The
Severance Plan will provide benefits and provisions for eligible non-union
employees who are involuntarily terminated due to the merger. At the same
time, the Company also offered a Limited Hardship Early Decision Severance Plan
(LHEDO) to designated non-union employees who choose to terminate their
employment with EUA rather than be considered for a position in the merged
company. Under the LHEDO, employees will receive an additional eight weeks of
severance pay for accepting the offer. Forty-three percent of the eligible
employees have accepted the LHEDO. Because the VERP and LHEDO are contingent
on the completion of the merger, which is subject to regulatory approvals, a
liability for expenses related to the VERP and LHEDO has not yet been recorded.
Utility Plant and Depreciation
Real property and equipment are reported at original cost.
Depreciation is computed using the straight line method based on estimated
useful lives of various classes of equipment. Provisions for depreciation were
equivalent to a composite rate of approximately 4.2% in 1999 and 3.9% in 1998
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
$l,367,615 and $1,283,717 for 1999 and 1998, respectively. Amortization
expense for equipment and vehicles under capital leases totaled $719,410 and
$763,462 for 1999 and 1998, respectively.
Other Assets
The components of other assets at December 31, 1999 and 1998 are
detailed as follows:
(in thousands)
1999 1998
Regulatory Assets:
Deferred SFAS 109 costs (Note B) $ 0 $ 24
Other deferred charges and assets:
Merger Cost $ 3,253
Unamortized debt expense 31 42
SFAS 106 (Note H) 386 386
Other 106 31
Total other deferred charges and assets 3,776 459
$3,776 $ 483
The merger costs listed above will become part of the acquisition costs of
the new company.
Cash and Temporary Cash Investments
The Company considers all highly liquid or temporary cash investments
with a maturity of three months or less when purchased to be cash equivalents.
New Accounting Standards
In June 1998, the Financial Accounting Standards Board (FASB) issued
SFAS 133, (Accounting for Derivative Instruments and Hedging Activities), which
is effective for fiscal years beginning after June 15, 1999. In June 1999, the
FASB issued SFAS 137, (Accounting for Derivative Instruments and Hedging
Activities - Deferral of the Effective Date), which amends SFAS 133 to be
effective for all fiscal quarters of all fiscal years beginning after June 15,
2000 (that is, January 1, 2001 for companies with calendar-year fiscal year
ends). SFAS 133 requires the recognition of all derivative instruments as
either assets or liabilities in the statement of financial position and the
measurement of those instruments at fair value. The Company does not expect
SFAS 133 to have a material impact on its financial position or results of
operation.
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.
B. Income Taxes:
Components of income tax expense (benefit) for the years 1999 and 1998
are as follows:
(in thousands)
1999 1998
Federal:
Current $200 $214
Deferred (56) (44)
144 170
State:
Current 55 11
Deferred 6 70
Total income tax expense $205 $251
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)
1999 1998
Federal income tax computed at statutory rates $159 $179
Increases (decreases) in tax from:
Prior period tax adjustments 5 (2)
Depreciation differences 4 4
State taxes, net of federal income
tax benefit 42 52
Other (5) 18
Total income tax expense $205 $251
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.
Total deferred tax assets and liabilities for 1999 and 1998 are comprised as
follows:
(in thousands)
Deferred Tax Deferred Tax
Assets Liabilities
1999 1998 1999 1998
Plant related differences $ 0 $ 4 $1,140 $1,252
State net operating loss
carry forward 0 6
Other 72 40
Total $ 0 $ 10 $1,212 $1,292
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 1999 is $1,100,000 for each of the
years 1999 through 2003 and $700,000 for 2004.
EUA has entered into equity maintenance agreements in connection with
the issuance of the Company's notes.
D. Capital Leases:
The Company conducts the major portion of its operations as a service
corporation in the electric utility industry using certain leased data
processing equipment, office equipment and vehicles.
The following is an analysis of the leased property under capital
leases as of December 31:
(in thousands)
1999 1998
Equipment $2,552 $2,530
Less accumulated amortization (1,732) (1,580)
Net leased equipment $ 820 $ 950
The following is a schedule of approximate future minimum lease payment
commitments for capital and noncancelable operating leases as of December 31,
1999:
(in thousands)
Capital Operating
Years ending December 31: Leases Leases
2000 $ 572 $ 635
2001 200 550
2002 39 328
2003 33 292
After 2003 9 293
Total future minimum lease payments $ 883 $ 2,098
Less interest (63)
Present value of net minimum lease
payments $ 820
Total rent expense for operating leases was approximately $1,949,000
and $1,754,000 for 1999 and 1998, respectively.
E. Capital Stock:
There were no changes in the number of authorized shares during the
years ended December 31, 1999 and 1998. During 1999 the Company paid $100,000
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, 1999
and 1998 is as follows:
(in thousands)
1999 1998
Eastern Edison Company $29,516 $25,654
Blackstone Valley Electric Company 15,412 13,253
Montaup Electric Company 5,382 7,632
Newport Electric Corporation 7,661 6,766
EUA Cogenex Corporation 676 677
Eastern Utilities Associates 358 240
EUA Ocean State Corporation 199 156
EUA Energy Investment Corporation 182 335
EUA Energy Services Incorporated 9 26
EUA Transcapacity 9 18
EUA Bioten 271 138
EUA Telecommunications 6 60
EUA Compression Services Incorporated 1 3
$59,682 $54,958
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 t he 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.
The Company's total pension expense amounted to $2,470,343 for 1999 and
$2,238,316 for 1998:
(in thousands)
1999 1998
Service cost - benefits earned during
the period $ 2,016 $ 1,748
Plus (less):
Interest cost on projected
benefit obligation 4,765 4,299
Expected (return) on assets (4,267) (3,817)
Net amortization and deferrals (44) 8
Total pension expense $2,470 $2,238
The projected benefit obligation, fair value of assets and funded
status of the Retirement Plan cannot be presented separately for the Company as
they participate in the Retirement Plan with other subsidiaries of EUA.
The discount rate and rate of increase in future compensation levels
used to determine pension obligations, were 6.75% in 1999 and 7.25% in 1998 and
4.25% in 1999 and in 1998, respectively. The expected long-term rate of return
on plan asset s in 1999 and 1998 was 9.50%. The discount rate used to
determine pension obligations, effective January 1, 2000 was changed from
6.75% to 7.75% and was used to calculate the plan's funded status at December
31, 1999.
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 certain participants of the
Supplemental Plans to fund in whole, or in part, its future liabilities under
the Supplemental Plans. As of December 31, 1999, approximately $7.4 million
is included as a liability in other deferred credits for these plans. The
liability for previously recognized unfunded voluntary retirement incentive is
$2,018,466 and $1,855,501 for 1999 and 1998, respectively. For the years
ending December 31, 1999 and 1998 the Company's portion of expenses related
to the supplemental plan were approximately $2.0 million and $0.8 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 $895,895 and
$737,491 in 1999 and 1998, 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 total cost of post-retirement benefits other than pensions for 1999
and 1998 includes the following components:
(in thousands)
1999 1998
Service cost $ 672 $ 523
Interest cost 1,582 1,336
Expected return on plan assets (877) (715)
Amortization of transition obligation 540 540
Other amortization and deferrals-net (85) (225)
Total post-retirement benefit cost $1,832 $1,459
Assumptions:
Discount rate 6.75% 7.25%
Health care cost trend rate-near-term 6.00% 6.00%
Health care cost trend rate-long-term 5.00% 5.00%
Compensation increase rate 4.25% 4.25%
Long-term return on assets - non union 7.50% 7.50%
(in thousands)
Reconciliation of Accumulated Post-Retirement 1999 1998
Benefit Obligation
Beginning of Year Benefit Obligation (January 1) $20,768 $18,577
Service Cost 673 522
Interest Cost 1,583 1,336
Participant Contributions 52 53
Actuarial Loss (Gain) (1,374) 903
Disbursements (1,304) (623)
End of Year Benefit Obligation (December 31) $20,398 $20,768
(in thousands)
Reconciliation of Fair Value Assets 1999 1998
Beginning of Year Fair Value of Assets (January 1) $ 11,700 $ 9,531
Actual return on plan assets 1,924 1,411
Company contributions 1,156 1,328
Participant contributions 52 53
Disbursements (1,304) (623)
End of Year Fair Value of Assets (December 31) $ 13,528 $11,700
(in thousands)
Reconciliation of funded status: 1999 1998
Accumulated post retirement benefit obligation
(APBO):
Retirees $(5,696) (6,859)
Active employees fully eligible for benefits (4,299) (3,214)
Other active employees (10,403) (10,695)
Total (20,398) (20,768)
Plan assets at fair value, primarily notes & bonds 13,529 11,700
Unrecognized transition obligation 7,016 7,556
Unrecognized net loss (gain) (278) 2,057
Prepaid (accrued) post retirement benefit cost $ (131) $ 545
Effect of 1% change in Assumed Health Care Cost Trend Rate
(in thousands)
One Percentage Point
Increase Decrease
(in thousands)
Effect on 1999 service and interest
cost components of net-periodic cost $ 378 $ (296)
Effect on 1999 accumulated post-retirement
benefit obligation $ 2,647 $(2,149)
The discount rate used to determine post retirement benefit obligations
effective January 1, 2000 was changed from 6.75% to 7.75% and was used to
calculate the funded status of post-retirement benefits at December 31, 1999.
The Company has also established an irrevocable external Voluntary
Employees' Beneficiary Association Trust Fund for non-union retirees.
Contributions to the fund commenced in March 1993 and totaled $1,156,243 and
$1,328,336 during 1999 and 1998, respectively.
I. Lines of Credit:
EUA System companies, which includes the Company, maintain short-term
lines of credit with various banks totaling $90 million for an aggregate amount
available of $225 million. As of December 31, 1999, various financial
institutions have committed up to $135 million under the revolving credit
facility. The Company had no short-term borrowings outstanding at December 31,
1999 and 1998.
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,
1999 are as follows (in thousands):
Carrying Fair
Amount Value
Cash and Temporary Cash Investments $ 762 $ 762
Long-Term Debt $5,100 $5,250
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
SCHEDULE XV
STATEMENT OF INCOME
<CAPTION>
CURRENT PRIOR
ACCOUNT D E S C R I P T I O N YEAR YEAR
<S> <C> <C> <C>
INCOME
457 Services rendered to associate companies 59,682,054 54,958,053
458 Services rendered to nonassociate companies 452,206 458,720
Total Income 60,134,260 55,416,773
EXPENSE
920 Salaries and wages 34,753,771 32,050,458
921 Office supplies and expenses 2,355,511 2,411,054
923 Outside services employed 3,158,326 2,155,926
924 Property insurance 30,028 29,568
925 Injuries and damages 285,859 245,188
926 Employee pension and benefits 10,770,193 9,578,559
930.1 General advertising expenses 1,441 9,736
930.2 Miscellaneous general expenses 617,626 910,056
931 Rents 1,933,774 1,795,896
935 Maintenance of structure and equipment 1,173,729 1,181,433
403 Depreciation and amortization expense 1,367,615 1,283,718
408 Taxes other than income taxes 2,767,187 2,677,837
409 Income taxes 254,933 225,232
410 Provision for deferred income taxes (50,048) 25,564
419.0 Other interest income (6,816) (3,220)
421.0 Misc. non-operating income billed (68,292) (77,421)
426.1 Donations 1,000 1,575
427 Interest on long-term debt 520,200 632,400
428 Amort. debt discount and expense 11,398 17,618
431 Other interest expense 6,010 3,753
Total Expenses Billed 59,883,445 55,154,930
Total Expenses 59,883,445 55,154,930
Net Income 250,815 261,843
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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
<S> <C> <C> <C> <C>
457-1 457-2 457-3
Blackstone Valley Electric Co. 13,950,991 1,402,390 58,813 15,412,194
Eastern Utilities Associates 329,992 27,686 567 358,245
Montaup Electric Company 5,047,459 327,437 7,235 5,382,131
Eastern Edison Company 26,624,481 2,774,433 117,191 29,516,105
EUA Cogenex Corporation (Includes Divisions) 591,067 83,590 1,135 675,792
EUA Energy Investment Corp. 159,594 20,764 1,280 181,638
EUA Ocean State Corporation 175,600 23,426 514 199,540
Newport Electric Corporation 6,966,045 662,861 31,917 7,660,823
EUA Energy Services Incorporated 6,787 1,066 1,385 9,238
EUA Transcapacity Corporation 8,927 8,927
EUA Bioten Corporation 270,613 270,613
EUA Telecommunication 5,052 532 5,584
EUA Compression Services 1,224 1,224
Total 54,137,832 5,324,185 220,037 59,682,054
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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>
Environmental Service 4,000 202 4,202 1,628 5,830
Somerset Power - Scada 19,185 19,185 12,372 31,557
Transcapacity 4,494 804 5,298 5,298
EMI Dighton Generation 6,626 6,626 3,281 9,907
Hydro #2 Station 1,665 1,665 648 2,313
New England Electric Service Support 233,759 35,652 269,411 269,411
Bioten General Support 408 408 408
Browning-Ferris 7,070 7,070 3,380 10,450
Pascoag C&LM 202 4 206 78 284
Reliability & Tracking 5,411 440 5,851 8,228 14,079
Braintree Scada Service 5,853 5,853 565 6,418
OSP RTU Testing 355 42 397 287 684
West Center Street Realty - Land 19,668 19,668 13,092 32,760
TMLP Data Link 4,843 4,843 1,483 6,326
OSP 1 & 2 Data Link 31,344 31,344 13,652 44,996
Middleboro - SCADA Software 3,902 3,902 2,194 6,096
Pascoag Scada Service 3,907 3,907 1,447 5,354
General Non-Affiliated Activity 31,559 31,559 (31,557) 2
OSP Nepool 0 33 33 33
384,251 37,177 0 421,428 30,778 452,206
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NON-ASSOCIATION COMPANIES
ASSOCIATE COMPANY CHARGES NON-ASSOCIATE CO. CHARGES
DIRECT INDIRECT DIRECT INDIRECT
DESCRIPTION OF ITEMS COST COST TOTAL COST COST TOTAL
<S> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES 33,430,928 1,149,991 34,580,919 172,852 172,852
921 OFFICE SUPPLIES AND EXPENSES 1,759,648 564,257 2,323,905 21,101 10,505 31,606
923 OUTSIDE SERVICES EMPLOYED 2,620,130 462,214 3,082,344 75,457 525 75,982
924 PROPERTY INSURANCE 30,028 0 30,028 0
925 INJURIES AND DAMAGES 279,335 6,313 285,648 211 211
926 EMPLOYEE PENSIONS AND BENEFITS 10,398,954 319,525 10,718,479 51,714 51,714
930.1 GENERAL ADVERTISING EXPENSE 1,441 0 1,441 0
930.2 MISC. GENERAL EXPENSE 614,066 3,560 617,626 0
931 RENTS 1,239,743 674,157 1,913,900 19,874 19,874
935 MAINTENANCE 1,003,446 169,587 1,173,033 696 696
403 DEPRECIATION 84,934 1,279,545 1,364,479 3,136 3,136
408 TAXES OTHER THAN INCOME TAXES 2,675,179 78,264 2,753,443 13,733 11 13,744
409 INCOME TAXES 0 229,266 229,266 25,667 25,667
410 PROVISION FOR DEFERRED INCOME TAXES 0 (55,940) (55,940) 5,892 5,892
419.0 OTHER INTEREST INCOME 0 (6,816) (6,816) 0
421.0 MISC. NON-OPERATING INCOME BILLED 0 (68,292) (68,292) 0
426.1 DONATIONS-DEDUCTIBLE 0 1,000 1,000 0
427 INTEREST ON LONG-TERM DEBT 0 500,338 500,338 17,494 2,368 19,862
428 AMORT. OF DEBT DISCOUNT AND EXPENSE 0 11,249 11,249 129 20 149
431 OTHER INTEREST EXPENSE 0 5,967 5,967 43 43
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 = 54,137,832 5,324,185 59,462,017 384,250 37,178 421,428
COMPENSATION FOR USE OF EQUITY CAPITAL= 220,038 220,038 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES=
TOTAL COST OF SERVICE= 54,137,832 5,544,223 59,682,055 384,250 37,178 421,428
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
<CAPTION>
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NON-ASSOCIATION COMPANIES
(Continued)
TOTAL CHARGES FOR SERVICES
DIRECT INDIRECT
DESCRIPTION OF ITEMS COST COST TOTAL
<S> <C> <C> <C> <C>
920 SALARIES AND WAGES 33,603,780 1,149,991 34,753,771
921 OFFICE SUPPLIES AND EXPENSES 1,780,749 574,762 2,355,511
923 OUTSIDE SERVICES EMPLOYED 2,695,587 462,739 3,158,326
924 PROPERTY INSURANCE 30,028 0 30,028
925 INJURIES AND DAMAGES 279,546 6,313 285,859
926 EMPLOYEE PENSIONS AND BENEFITS 10,450,668 319,525 10,770,193
930.1 GENERAL ADVERTISING EXPENSE 1,441 0 1,441
930.2 MISC. GENERAL EXPENSE 614,066 3,560 617,626
931 RENTS 1,239,743 694,031 1,933,774
935 MAINTENANCE 1,003,446 170,283 1,173,729
403 DEPRECIATION 84,934 1,282,681 1,367,615
408 TAXES OTHER THAN INCOME TAXES 2,688,912 78,275 2,767,187
409 INCOME TAXES 25,667 229,266 254,933
410 PROVISION FOR DEFERRED INCOME TAXES 5,892 (55,940) (50,048)
419.0 OTHER INTEREST INCOME 0 (6,816) (6,816)
421.0 MISC. NON-OPERATING INCOME BILLED 0 (68,292) (68,292)
426.1 DONATIONS-DEDUCTIBLE 0 1,000 1,000
427 INTEREST ON LONG-TERM DEBT 17,494 502,706 520,200
428 AMORT. OF DEBT DISCOUNT AND EXPENSE 129 11,269 11,398
431 OTHER INTEREST EXPENSE 0 6,010 6,010
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 = 54,522,082 5,361,363 59,883,445
COMPENSATION FOR USE OF EQUITY CAPITAL= 0 220,038 220,038
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES=
TOTAL COST OF SERVICE= 54,522,082 5,581,401 60,103,483
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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>
920 Salaries and Wages 34,753,771 283,969 1,238,084 214,935 1,282,578
921 Office Supplies and Expenses 2,355,511 10,382 33,268 7,411 80,603
923 Outside Services Employed 3,158,326 3,244 6,000
924 Property Insurance 30,028
925 Injuries and Damages 285,859
926 Employee Pension and Benefits 10,770,193 956
930.1 General Advertising Expense 1,441
930.2 Misc. General Expense 617,626 3,761 150 2,404 7,937
931 Rents 1,933,774 2,809 5,241 10,203 11,890
935 Maintenance 1,173,729 991 3,420 158 1,983
403 Depreciation 1,367,615 2,343 4,029 6,349 40,224
408 Taxes Other Than Income Taxes 2,767,187 13,819 60,241 15,417 100,032
409 Income Taxes 254,933
410 Provision for Deferred Income Taxes (50,048)
419.0 Other Interest Income (6,816)
421.0 Misc Non-Operating Income (68,292) (5,373)
426.1 Donations 1,000
427 Interest on Long-Term Debt 520,200 967 2,811 2,898 23,176
428 Amort. of Debt Discount and Expense 11,398 21 61 63 515
431 Other Interest Expense 6,010 11 29 33 261
INSTRUCTION: Indicate each department or
service function. (See instruction 01-3 General
Structure of Accounting System: Uniform System
of Accounts.)
TOTAL EXPENSES = 59,883,445 319,073 1,351,534 260,498 1,549,199
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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
<S> <C> <C> <C> <C> <C>
920 Salaries and Wages 3,066,291 222,828 948,738 367,341 40,937
921 Office Supplies and Expenses 193,738 17,122 68,886 24,689 23,034
922 Administrative Expense Transferred - Credit
923 Outside Services Employed 743,698 495,912 1,584 2,575
924 Property Insurance 30,028
925 Injuries and Damages (2,665) 282,076
926 Employee Pension and Benefits 10,714,229
928 Regulatory Commission Expense
930.1 General Advertising Expense
930.2 Misc. General Expense 12,543 197,396 6,131 2,310
931 Rents 543,603 14,352 6,930 285,838
935 Maintenance 581,093 1,983 2,750
403 Depreciation 103,352 2,343 38,453 55,092 843
405 Amortization
408 Taxes Other Than Income Taxes 229,480 9,165 68,472 27,423 3,165
409 Income Taxes
410 Provision for Deferred Income Taxes
411 Provision for Deferred Income Taxes-Credit
419.0 Other Interest Income (13) (1,182)
419.1 AFUDC - Equity Funds
421.0 Misc Non-Operating Income (600)
426.1 Donations
426.3 Penalties
426.5 Other Deductions
427 Interest on Long-Term Debt 42,313 967 16,022 5,796 967
428 Amort. of Debt Discount and Expense 945 21 337 125 21
431 Other Interest Expense 479 11 181 66 11
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 = 5,514,257 252,457 12,562,978 808,082 362,451
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
SCHEDULE XVI
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
DESCRIPTION OF ITEMS 260'S 270'S 280 305,310
<S> <C> <C> <C> <C>
920 Salaries and Wages 2,229,841 863,529 446,046 288,354
921 Office Supplies and Expenses 93,245 57,637 59,680 33,010
922 Administrative Expense Transferred - Credit
923 Outside Services Employed 33,070 20,187 141,957
924 Property Insurance
925 Injuries and Damages
926 Employee Pension and Benefits 673
928 Regulatory Commission Expense
930.1 General Advertising Expense 1,441
930.2 Misc. General Expense 14,689 32,839 4,277
931 Rents 13,950 16,970 4,067
935 Maintenance 45,319
403 Depreciation 50,147 26,583 11,197 8,627
405 Amortization
408 Taxes Other Than Income Taxes 157,903 64,156 30,712 22,248
409 Income Taxes
410 Provision for Deferred Income Taxes
411 Provision for Deferred Income Taxes-Credit
419.0 Other Interest Income
419.1 AFUDC - Equity Funds
421.0 Misc Non-Operating Income (275)
426.1 Donations
426.3 Penalties
426.5 Other Deductions
427 Interest on Long-Term Debt 29,136 13,523 5,140 4,830
428 Amort. of Debt Discount and Expense 642 292 120 104
431 Other Interest Expense 331 154 56 55
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 = 2,667,998 1,097,311 552,951 508,202
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
<CAPTION>
SCHEDULE XVI
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
DEPARTMENT OR SERVICE FUNCTION
DESCRIPTION OF ITEMS 315-325 360'S 372 410-418 420-424 426-433 440'S
<S> <C> <C> <C> <C> <C> <C> <C>
920 Salaries and Wages 715,624 1,576,469 1,795,269 1,477,763 2,535,712 3,365,451
921 Office Supplies and Expenses 37,707 18,432 77,255 30,780 96,864 53,374
922 Administrative Expense Transferred - Credit
923 Outside Services Employed 1,335 13,918 840,895 30,202 241,354 51,796
924 Property Insurance
925 Injuries and Damages 308
926 Employee Pension and Benefits 213
928 Regulatory Commission Expense
930.1 General Advertising Expense
930.2 Misc. General Expense 7,904 2,952 248,304 11,320 8,082 12,099
931 Rents 5,337 10,237 61,607 378,241 118,206
935 Maintenance 6,015 54,709 143,626 22,054 1,800
403 Depreciation 22,920 20,421 11,896 37,371 81,781 142,159
405 Amortization
408 Taxes Other Than Income Taxes 33 55,087 119,719 96,738 103,541 186,505 260,416
409 Income Taxes 254,933
410 Provision for Deferred Income Taxes (50,048)
411 Provision for Deferred Income Taxes-Credit
419.0 Other Interest Income (5,621)
419.1 AFUDC - Equity Funds
421.0 Misc Non-Operating Income (62,044)
426.1 Donations 1,000
426.3 Penalties
426.5 Other Deductions
427 Interest on Long-Term Debt 12,558 23,184 12,459 18,749 42,341 83,536
428 Amort. of Debt Discount and Expense 271 501 285 414 929 1,840
431 Other Interest Expense 143 318 138 213 551 945
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 = 33 864,901 1,775,914 3,149,185 1,915,586 3,731,847 4,091,930
</TABLE>
U-13-60 ADDITION
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
SCHEDULE XVI
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
DESCRIPTION OF ITEMS 450'S 525 560 565
<S> <C> <C> <C> <C>
920 Salaries and Wages 1,423,698 519,108 331,057 67,724
921 Office Supplies and Expenses 555,068 14,082 6,485 27,207
922 Administrative Expense Transferred - Credit
923 Outside Services Employed 474,443 4,456 14,997
924 Property Insurance
925 Injuries and Damages 5,317
926 Employee Pension and Benefits 54,122
928 Regulatory Commission Expense
930.1 General Advertising Expense
930.2 Misc. General Expense 1,250 245
931 Rents 188,325 10,566 1,810 1,870
935 Maintenance 167,827 991
403 Depreciation 56,214 6,792 4,641 1,686
405 Amortization
408 Taxes Other Than Income Taxes 376,338 40,242 15,018 5,352
409 Income Taxes
410 Provision for Deferred Income Taxes
411 Provision for Deferred Income Taxes-Credit
419.0 Other Interest Income
419.1 AFUDC - Equity Funds
421.0 Misc Non-Operating Income
426.1 Donations
426.3 Penalties
426.5 Other Deductions
427 Interest on Long-Term Debt 27,994 7,965 1,932 1,605
428 Amort. of Debt Discount and Expense 619 169 42 39
431 Other Interest Expense 315 90 22 17
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 = 3,331,530 604,461 361,007 120,742
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
SCHEDULE XVI
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
DESCRIPTION OF ITEMS 570'S 581-585 586, 587 588 600'S
<S> <C> <C> <C> <C> <C>
920 Salaries and Wages 4,039,951 1,518,450 607,649 145,463 3,140,912
921 Office Supplies and Expenses 168,627 51,223 119,157 236,247 160,298
922 Administrative Expense Transferred - Credit
923 Outside Services Employed 3,963 29,056 3,684
924 Property Insurance
925 Injuries and Damages 525 298
926 Employee Pension and Benefits
928 Regulatory Commission Expense
930.1 General Advertising Expense
930.2 Misc. General Expense 10,517 13,509 3,650 7,011 6,346
931 Rents 98,452 72,906 14,448 9,895 46,021
935 Maintenance 45,339 72,157 6,034 28 15,452
403 Depreciation 125,562 423,091 18,071 2,576 62,852
405 Amortization
408 Taxes Other Than Income Taxes 303,578 121,447 45,169 11,274 224,497
409 Income Taxes
410 Provision for Deferred Income Taxes
411 Provision for Deferred Income Taxes-Credit
419.0 Other Interest Income
419.1 AFUDC - Equity Funds
421.0 Misc Non-Operating Income
426.1 Donations
426.3 Penalties
426.5 Other Deductions
427 Interest on Long-Term Debt 65,608 24,143 8,853 2,898 37,829
428 Amort. of Debt Discount and Expense 1,405 536 203 62 816
431 Other Interest Expense 745 272 100 33 430
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 = 4,860,309 2,301,697 852,688 419,171 3,695,453
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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>
105 Executive Admin. &
Support 283,969 283,969 1
110-111 Executive Admin. &
Support 1,238,084 12,475 1,225,609 2
115 Internal Audit 214,935 1,167 213,768 3
120's Consumer Service 1,282,578 1,275,372 7,206 23
130's Information Systems 3,066,291 2,555 3,033,274 30,462 42
210 Admin. Support -
Corporate 222,828 1,346 221,482 1
215-220 Human Resources/
Emp. Benefits 948,738 2,982 945,756 16
230,235 Safety and
Occupational
Health 367,341 1,006 366,335 6
240 Office Services -
Boston 40,937 40,937 1
260's Corporate Planning
/C&LM/PWR Mgmt. 2,229,841 2,229,755 86 30
270's Marketing Services 863,529 863,529 14
280 Strategic Studies 446,046 442,337 3,709 4
305, 310 Executive Admin &
Support/Corp.
Comm. 288,354 1,692 286,033 629 5
315-325 Corporate
Communications 0 0 0
360's Matls. Mgmt/Stores/
Purchasing 715,624 32 700,713 14,879 13
372 System Operations 1,576,469 1,576,469 24
410-418 Financial/Treasury
Services 1,795,269 16,756 1,761,998 16,515 11
420-424 Rate Admin/Load
Research 1,477,763 1,472,716 5,047 19
426-433 Comptroller/Acctng. 2,535,712 36,243 2,496,131 3,338 44
440's Customer Service 3,365,451 2 3,356,900 8,549 85
450's Bldg & Facilities-WB 1,423,698 3,714 1,419,984 28
525 Transmission Lines 519,108 519,108 8
560 Eng. & Oper Admin
& Support 331,057 1,313 329,744 2
565 Central Meter Test 67,724 67,724 1
570's Engineering 4,039,951 3,993,762 46,189 68
581-585 S & C / Substation /
Radio/ Microwave
Stds. 1,518,450 67,828 1,417,435 33,187 24
586-587 Environmental Eng. 607,649 604,593 3,056 9
588 Telecommunications 145,463 145,463 3
600's Admin. & Support 3,140,912 141 3,140,771 0 39
TOTAL 34,753,771 149,252 34,431,667 172,852 526
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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> <C> <C> <C>
Outside Services - Legal
McDermott, Will and Emery Legal Services NA 455,741
Various (9) NA 5,063
460,804
Outside Services - Accounting
Eastern Utilities Accounting Services A 46,223
Various (2) NA 90,119
136,342
Outside Services - Y2K Consulting
McDermott Will & Emery Legal Services NA 215,388
SEEC, Inc Technical Training NA 124,609
Various (11) NA 478,202
818,199
Outside Services - Info. Systems
Various (13) NA 80,906
Outside Services - Building
and Maintenance
First Security Services Security Services NA 149,257
Various (28) NA 213,459
362,716
Outside Services - Other
Eastern Edison Company Arborist/Tech.Trainers/Prop.Maint. A 486,540
Blackstone Valley Tech.Trainers/Prop.Maint. A 113,659
Higher Ground Associates Employee Services NA 127,544
Media Concepts Printing Services NA 105,982
Various (47) NA 465,635
1,299,359
Total Outside Services Employed 3,158,326
</TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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.
D E S C R I P T I O N AMOUNT
Dental Plan (9260-02) 226,646
Employee Education Reimbursement (9260-03) 61,700
Employee Publications (9260-04) 673
Long Term Disability (9260-08) 0
Life Insurance (9260-12 to 9260-19) 343,667
Group Health including FAS 106 (9260-10/9260-22 TO 9260-39) 4,011,807
Company Match/Employee Savings Plan (9260-40 to 9260-43) 896,548
Pension Plan (9260-51 to 9260-58) 4,851,990
Miscellaneous (Service Recognition, Employee Exams 377,162
and Employee related programs)
TOTAL 10,770,193
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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.
D E S C R I P T I O N NAME OF PAYEE AMOUNT
ACCOUNT 930.1 - GENERAL ADVERTISING EXPENSE
Miscellaneous 1,441
TOTAL 1,441
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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.
D E S C R I P T I O N AMOUNT
Industry Association Dues 35,628
Corporate and Fiscal Expenses Including Investor Relations 127,234
Transfer Agent Fees and Expenses 94,155
Employee Training and Seminars 320,656
Miscellaneous 39,954
TOTAL 617,627
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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.
T Y P E O F P R O P E R T Y AMOUNT
Building Rents:
Boston MA, Office Facility 269,705
Brockton MA, Office Facility 8,430
Lincoln RI, Office Facility 204,125
Total Building Rents 482,260
Data Processing and Other Equipment Rents 1,451,514
TOTAL 1,933,774
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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.
K I N D O F T A X AMOUNT
Other Than U.S. Government Tax:
Massachusetts Unemployment Tax 69,869
Rhode Island Unemployment Tax 16,684
Tennesee State tax 189
Job Development Tax (Rhode Island) 1,854
Job Development Tax (Massachusetts) 3,955
Property Tax 270,506
Health Insurance Tax - Massachusetts 8,167
Miscellaneous 29,858
401,082
U.S. Government Tax:
FICA 2,334,513
Federal Unemployment Tax 31,592
2,366,105
2,767,187
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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.
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
ACCOUNT 426.1 - DONATIONS
Various (1) 1,000
TOTAL 1,000
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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.
DESCRIPTION NAME OF PAYEE AMOUNT
ACCOUNT 426.5 - Other Deductions 0
TOTAL 0
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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.
DESCRIPTION NAME OF PAYEE AMOUNT
ACCOUNT 426.5 - Other Deductions 0
TOTAL 0
<TABLE>
ANNUAL REPORT OF EUA SERVICE CORPORATION
<CAPTION>
ORGANIZATION CHART
<S> <C><C> <C> <C> <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
| Pres. Retail | | | |
| _______|__________ V.P. | Assistant Treasury
| | | Power Supply | Comptroller Financial
| | V.P. | | | Serv.
| | Field | Assistant | Modeling
| | Operations | Comptroller | Invest.
| | | | | Relations
| | | | Accounting
| Engineering Trans. & Transmission Reporting
| Facilities Mgt. Distribution Services Budget
| Fleet & Power Supply
_______ |______________________________________________ Garage Somerset Sta.
| | | | | Material Mgt. Support Services
V.P. V.P. Director-Info. Director- V.P. System Operations
Technical Rates Services Customer Human Substation &
Services | Director- Services Resources Communications
| | | | |
| Rate Design Information | |
| Load Research Services Customer Safety/Risk Mgmt.
| Rev. Req. & Admin Small Systems Informa- Corporate Benefits
| Tech. Support tion Employee Services
Consv. & Load Mgmt. Services Customer H. R. Services
Consumer Services Purchasing Services Media Relations
Marketing Services Tech. Operations Employee Communications
Business Services
</TABLE>
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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
ANNUAL REPORT OF EUA Service Corporation
For the Year Ended December 31, 1999
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
Telecommunications and Energy, 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, 1999:
Blackstone Valley Electric Company $58,813
Montaup Electric Company 7,235
EUA Energy Investment Corporation 1,280
Eastern Edison Company 117,191
Eastern Utilities Associates 567
EUA Cogenex Corporation 1,135
EUA Ocean State Corporation 514
Newport Electric Corporation 31,917
EUA Energy Services Incorporated 1,385
$220,037
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/ Augustine Camara
(Signature of Signing Officer)
Augustine Camara, Assistant Comptroller
(Printed Name and Title of Signing Officer)
Date: April 17, 2000
<TABLE> <S> <C>
<ARTICLE> OPUR2
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> DEC-31-2000
<BOOK-VALUE> PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 18554
<TOTAL-INVESTMENTS> 0
<TOTAL-CURRENT-ASSETS> 17100
<TOTAL-DEFERRED-DEBITS> 3776
<OTHER-ASSETS-AND-DEBITS> 0
<TOTAL-ASSETS-AND-DEBITS> 39430
<TOTAL-PROPRIETARY-CAPITAL> 2658
<TOTAL-LONG-TERM-DEBT> 4287
<NOTES-PAYABLE> 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 0
<OTHER-CURR-AND-ACCRUED-LIAB> 4852
<TOTAL-DEFERRED-CREDITS> 26421
<DEFERRED-INCOME-TAX> 1212
<TOT-LIABIL-AND-PROPRIET-CAP> 39430
<SERVICES-ASSOCIATE-COMPANIES> 59682
<SERVICES-NON-ASSOCIATE-COMP> 452
<MISC-INCOME-OR-LOSS> 0
<TOTAL-INCOME> 60134
<SALARIES-AND-WAGES> 34754
<EMPLOYEE-PENSION-AND-BENEFIT> 10770
<OTHER-EXPENSES> 14359
<TOTAL-EXPENSES> 59883
<NET-INCOME> 251
<TOTAL-EXPENSES-DIRECT-COST> 54522
<TOTAL-EXPENSES-INDIRECT-COST> 5361
<TOT-EXP-DIRECT-AND-INDIRECT> 59883
<PERSONNEL-END-OF-YEAR> 526
</TABLE>
