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File No. 70-8921
CERTIFICATE OF NOTIFICATION
(Rule 24)
SECURITIES AND EXCHANGE COMMISSION
BY
NEES ENERGY, INC. and ALLENERGY MARKETING COMPANY, L.L.C.
In accordance with the Order of the Securities and Exchange Commission
dated December 23, 1996, the following is a report for the fourth
quarter of 1996:
1. AllEnergy Marketing Company, L.L.C. (AllEnergy, LLC), a
Massachusetts Limited Liability Corporation was formed on September
18, 1996. The company was formed as a joint venture between NEES
Energy, Inc. and AllEnergy Marketing Company, Inc., each a
Massachusetts corporation.
2. As of December 31, 1996, AllEnergy, LLC employed 22 permanent
personnel. During the fourth quarter there were four individuals
assigned to AllEnergy, LLC on a full-time basis from New England
Power Service Company (NEPSCo). NEPSCo is an affiliated company of
NEES Energy, Inc.
3. Attached in Exhibits A through C are a consolidated balance sheet as
of December 31, 1996, and a consolidated statement of income and cash
flows for the year ended December 31, 1996.
4. On December 23, 1996, AllEnergy, LLC formed a subsidiary, Texas
Liquids, LLC to purchase the majority of the assets and liabilities
of Texas Liquids LTD, Inc. The relevant assets and liabilities of
Texas Liquids LTD, Inc. were purchased on December 23, 1996 for a
purchase price of $2,427,338. Texas Liquids, LLC engages in
purchasing, marketing, selling, and distributing energy commodities
and related products and services.
5. As authorized by the Order, AllEnergy, LLC engaged in energy-related
consulting, engineering, power quality and other similar services for
the period ended December 31, 1996.
Pursuant to the requirements of the Public Utility Holding Company
Act of 1935, the undersigned company has duly caused this certificate of
notification (Commission's File No. 70-8921) to be signed on its behalf
by the undersigned officer thereunto duly authorized.
By:
s/Marcy L. Reed s/John G. Cochrane
______________________ ________________________
Marcy L. Reed John G. Cochrane
Vice President and Treasurer Treasurer
AllEnergy Marketing Company, L.L.C. NEES Energy, Inc.
Date: March 24, 1997 Date: March 25, 1997
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EXHIBIT INDEX
Exhibit No. Description Page
- ----------- ----------- ----
A Consolidated Balance Sheet as of
December 31, 1996 Filed
(Unaudited) herewith
B Consolidated Statement of Income and
Members' Accumulated Deficit Filed
For the Year ended December 31, 1996 herewith
(Unaudited)
C Consolidated Statement of Cash Flows Filed
For the Year Ended December 31, 1996 herewith
(Unaudited)
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Exhibit A
ALLENERGY MARKETING COMPANY, L.L.C.
Consolidated Balance Sheet
As of December 31, 1996
(Unaudited)
ASSETS
- ------
Current Assets
Cash $2,291,347
Accounts receivable (net of reserve
for bad debts of $153,600) 7,059,254
Unbilled revenue 9,513
Inventory 2,315,030
Prepaid expense 124,065
-----------
Total Current Assets 11,799,209
Fixed assets (net of accumulated
depreciation of $49,368) 343,894
Other assets 346,898
-----------
Total Assets $12,490,001
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LIABILITIES AND MEMBERS' EQUITY
- -------------------------------
Current Liabilities
Accounts payable to members $664,061
Accounts payable 6,654,611
Accrued expenses 1,105,749
Other current liabilities 633,044
-----------
Total Current Liabilities 9,057,465
Members' Equity 3,432,536
-----------
Total Liabilities and Members' Equity $12,490,001
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Exhibit B
ALLENERGY MARKETING COMPANY, L.L.C.
Consolidated Statement of Income and Members' Accumulated Deficit
For the Year Ended December 31, 1996
(Unaudited)
Revenues $2,211,948
Operating expenses:
Cost of sales 2,451,244
Selling, general and administrative 1,790,041
Consulting 623,720
Member service charges 460,598
----------
Total operating expenses 5,325,603
----------
Operating income (loss) (3,113,655)
Other income (expense):
Interest income 42,737
Interest income on contribution
receivable from member 26,396
Interest expense on note payable to member (26,396)
Other 3,454
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Total other income (expense) 46,191
----------
Net loss ($3,067,464)
Members' accumulated deficit at beginning
of period -
----------
Members' accumulated deficit at end of period ($3,067,464)
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Exhibit C
ALLENERGY MARKETING COMPANY, L.L.C.
Consolidated Statement of Cash Flows
For the Year Ended December 31, 1996
(Unaudited)
Operating Activities
Net loss ($3,067,464)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation 9,621
Changes in operating assets and liabilities:
Accounts receivable and unbilled revenues, net (341,002)
Inventory (66,622)
Prepaid expenses (109,865)
Accounts payable to members 664,061
Accounts payable and accrued expenses 709,183
Other, net 35,37
----------
Net cash used in operating activities (2,166,714)
Investing Activities
Purchase of fixed assets (334,835)
Acquisition of business, net (1,707,104)
----------
Net cash used in investing activities (2,041,939)
Financing Activities
Proceeds from note payable to member 3,250,000
Repayment of note payable to member (3,250,000)
Members' capital contributions 6,500,000
----------
Net cash provided by financing activities 6,500,000
Net increase in cash and cash equivalents 2,291,347
Cash and cash equivalents at beginning of period -
----------
Cash and cash equivalents at end of period $2,291,347
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Supplemental Information:
Interest paid to member $26,396
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