<PAGE 1>
File No. 69-122
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
Form U-3A-2
STATEMENT BY HOLDING COMPANY CLAIMING EXEMPTION
UNDER RULE U-3A-2 FROM THE PROVISIONS OF THE
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
For the fiscal year ended December 31, 1994
COMMONWEALTH ENERGY SYSTEM
hereby files with the Securities and Exchange Commission, pursuant to Rule 2,
its statement claiming exemption as a holding company from the provisions of
the Public Utility Holding Company Act of 1935, and submits the following
information:
1. Name, State of organization, location and nature of business of claimant
and every subsidiary thereof.
Claimant
Commonwealth Energy System (the System), a Massachusetts Trust, organized
in the Commonwealth of Massachusetts is located in Cambridge,
Massachusetts. The System owns investments in the following electric and
gas utilities and other subsidiaries all of which are organized in the
Commonwealth of Massachusetts:
Name of Company Location
Electric Utilities
Cambridge Electric Light Company Cambridge, Massachusetts
Canal Electric Company Sandwich, Massachusetts
Commonwealth Electric Company New Bedford, Plymouth,
Martha's Vineyard and
the geographic area
comprising Cape Cod,
Massachusetts
Gas Utility
Commonwealth Gas Company Cambridge, Framingham, New
Bedford, Plymouth, South-
boro, Somerville and
Worcester, Massachusetts
Other Subsidiaries
COM/Energy Acushnet Realty Cambridge, Massachusetts
(Organized as a Trust;
leases land to Hopkinton
LNG Corp.)
COM/Energy Cambridge Realty Cambridge, Massachusetts
(Organized as a Trust to
hold various properties)
COM/Energy Freetown Realty Cambridge, Massachusetts
(Organized as a Trust
to develop a parcel of
land)
<PAGE 2>
COMMONWEALTH ENERGY SYSTEM
Other Subsidiaries (Continued)
Name of Company Location
COM/Energy Research Park Realty Cambridge, Massachusetts
(Organized as a Trust to
develop a research complex)
COM/Energy Services Company Cambridge, Massachusetts
(Service company)
COM/Energy Steam Company Cambridge, Massachusetts
(Sells steam for heating
and industrial production)
Darvel Realty Trust Cambridge, Massachusetts
(Owns, develops and operates
real estate)
Hopkinton LNG Corp. Cambridge, Massachusetts
(Operates an LNG facility
with Commonwealth Gas Company
being its primary customer)
All of the previously listed subsidiaries are wholly-owned.
2. A brief description of the properties of claimant and each of its
subsidiary public utility companies is included in Exhibit C attached
hereto.
3. Reference is made to Exhibit D attached hereto for a description of sales
and purchases of electricity and gas.
This statement consists of pages numbered 1, 2 and 3 inclusive, together
with the following exhibits:
Exhibit A - Financial Statements (Should be read in conjunction
with the Annual Report on Form 10-K filed with the
Securities and Exchange Commission.)
Exhibit B - Financial Data Schedule
Exhibit C - Description of Properties
Exhibit D - Sales and Purchases of Electricity and Gas
<PAGE 3>
COMMONWEALTH ENERGY SYSTEM
SIGNATURES
The above-named claimant has caused this statement to be duly
executed on its behalf by its authorized officer on this 28th day of February,
1995.
COMMONWEALTH ENERGY SYSTEM
By JOHN A. WHALEN
John A. Whalen,
Comptroller
SEAL
Attest
RICHARD J. MORRISON
Richard J. Morrison,
Assistant Secretary
Name, title and address of officer to whom notices and
correspondence concerning this statement should be addressed:
John A. Whalen Comptroller
(Name) (Title)
One Main Street, Cambridge, Massachusetts 02142-9150
(Address)
<PAGE 4>
INDEX TO
EXHIBIT A
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
INDEX TO FINANCIAL STATEMENTS
Exhibit Description
A - 1 Consolidating Statement of Income for the
Twelve Months Ended December 31, 1994 Pages 1 - 5
A - 2 Eliminations and Reclassifications to
Consolidating Statement of Income for
the Twelve Months Ended December 31, 1994
Summary Pages 1 - 3
Detail Pages 4 - 8
A - 3 Consolidating Statement of Retained
Earnings for the Twelve Months Ended
December 31, 1994 Pages 1 - 3
A - 4 Consolidating Balance Sheet -
December 31, 1994
Assets Pages 1 - 5
Capitalization and Liabilities Pages 6 - 10
Note to Consolidating Balance Sheet Page 11
A - 5 Eliminations and Reclassifications to
Consolidating Balance Sheet -
December 31, 1994
Summary Pages 1 - 2
Detail Pages 3 - 5
<PAGE 5>
EXHIBIT A-1
PAGE 1 of 5
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1994
(Dollars in Thousands)
Eliminations
and Reclass-
Consolidated ifications Total
OPERATING REVENUES:
Electric $639 127 $125 469 $ 764 596
Gas 323 568 2 158 325 726
Steam 13 760 - 13 760
Other 2 107 45 583 47 690
978 562 173 210 1 151 772
OPERATING EXPENSES:
Fuel used in electric and steam
production, principally oil 90 414 389 90 803
Electricity purchased for resale 269 418 118 743 388 161
Cost of gas sold 177 150 11 619 188 769
Other operation 213 370 42 546 255 916
Maintenance 36 522 - 36 522
Depreciation 44 188 - 44 188
Taxes -
Local property 17 467 - 17 467
Federal and state income -
Current 15 960 - 15 960
Deferred 14 846 - 14 846
Investment tax credits, net (1 470) - (1 470)
Payroll and other 8 087 - 8 087
885 952 173 297 1 059 249
OPERATING INCOME (LOSS) 92 610 (87) 92 523
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries - 52 735 52 735
Interest - subsidiaries - 848 848
Other, net (168) 671 503
(168) 54 254 54 086
TOTAL INCOME 92 442 54 167 146 609
INTEREST CHARGES:
Long-term debt 39 442 - 39 442
Intercompany advances - 1 423 1 423
Other interest charges 4 475 9 4 484
Allowance for borrowed funds used
during construction (443) - (443)
43 474 1 432 44 906
NET INCOME (LOSS) $ 48 968 $ 52 735 $ 101 703
<PAGE 6>
EXHIBIT A-1
PAGE 2 of 5
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1994
(Dollars in Thousands)
Cambridge
Commonwealth Electric
Energy Subsidiaries Light
System Combined Company
OPERATING REVENUES:
Electric $ - $ 764 596 $128 260
Gas - 325 726 -
Steam - 13 760 -
Other - 47 690 -
- 1 151 772 128 260
OPERATING EXPENSES:
Fuel used in electric and steam
production, principally oil - 90 803 3 020
Electricity purchased for resale - 388 161 72 638
Cost of gas sold - 188 769 -
Other operation 1 266 254 650 28 710
Maintenance - 36 522 2 799
Depreciation - 44 188 4 030
Taxes -
Local property - 17 467 2 968
Federal and state income -
Current (1 657) 17 617 2 440
Deferred (346) 15 192 917
Investment tax credits, net - (1 470) (95)
Payroll and other 19 8 068 770
(718) 1 059 967 118 197
OPERATING INCOME (LOSS) 718 91 805 10 063
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries 52 735 - -
Interest - subsidiaries 848 - -
Other, net 48 455 254
53 631 455 254
TOTAL INCOME 54 349 92 260 10 317
INTEREST CHARGES:
Long-term debt 4 235 35 207 3 788
Intercompany advances - 1 423 40
Other interest charges 1 146 3 338 301
Allowance for borrowed funds used
during construction - (443) (54)
5 381 39 525 4 075
NET INCOME (LOSS) $ 48 968 $ 52 735 $ 6 242
<PAGE 7>
EXHIBIT A-1
PAGE 3 of 5
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1994
(Dollars in Thousands)
COM/ COM/ COM/
Canal Energy Energy Energy
Electric Acushnet Cambridge Freetown
Company Realty Realty Realty
OPERATING REVENUES:
Electric $198 386 $ - $ - $ -
Gas - - - -
Steam - - - -
Other - 160 (5) -
198 386 160 (5) -
OPERATING EXPENSES:
Fuel used in electric and steam
production, principally oil 81 864 - - -
Electricity purchased for resale 27 627 - - -
Cost of gas sold - - - -
Other operation 28 154 29 19 273
Maintenance 11 526 - - -
Depreciation 13 539 - - -
Taxes -
Local property 2 793 25 4 210
Federal and state income -
Current 7 459 43 (9) (116)
Deferred 1 815 - - (42)
Investment tax credits, net (702) - - -
Payroll and other 729 - - -
174 804 97 14 325
OPERATING INCOME (LOSS) 23 582 63 (19) (325)
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries - - - -
Interest - subsidiaries - - - -
Other, net 319 3 2 5
319 3 2 5
TOTAL INCOME 23 901 66 (17) (320)
INTEREST CHARGES:
Long-term debt 8 283 - - -
Intercompany advances 949 - - 15
Other interest charges 597 - - -
Allowance for borrowed funds used
during construction (86) - - -
9 743 - - 15
NET INCOME (LOSS) $ 14 158 $ 66 $ (17) $ (335)
<PAGE 8>
EXHIBIT A-1
PAGE 4 of 5
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1994
(Dollars in Thousands)
COM/ COM/ Common-
COM/Energy Energy Energy wealth
Research Services Steam Electric
Park Realty Company Company Company
OPERATING REVENUES:
Electric $ - $ - $ - $437 950
Gas - - - -
Steam - - 13 760 -
Other 834 35 457 - -
834 35 457 13 760 437 950
OPERATING EXPENSES:
Fuel used in electric and steam
production, principally oil - - 6 183 (264)
Electricity purchased for resale - - - 287 896
Cost of gas sold - - - -
Other operation 145 34 315 3 643 75 315
Maintenance - - 335 10 053
Depreciation - - 263 15 619
Taxes -
Local property 218 - 64 5 275
Federal and state income -
Current 230 755 1 248 1 435
Deferred (41) (760) 27 8 671
Investment tax credits, net - - (5) (436)
Payroll and other - 1 067 35 2 735
552 35 377 11 793 406 299
OPERATING INCOME (LOSS) 282 80 1 967 31 651
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries - - - -
Interest - subsidiaries - - - -
Other, net 20 - 51 (968)
20 - 51 (968)
TOTAL INCOME 302 80 2 018 30 683
INTEREST CHARGES:
Long-term debt - - - 14 183
Intercompany advances - - 8 11
Other interest charges 6 31 34 692
Allowance for borrowed funds used
during construction - - - (276)
6 31 42 14 610
NET INCOME (LOSS) $ 296 $ 49 $ 1 976 $ 16 073
<PAGE 9>
EXHIBIT A-1
PAGE 5 of 5
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1994
(Dollars in Thousands)
Common-
wealth Darvel Hopkinton
Gas Realty LNG
Company Trust Corp.
OPERATING REVENUES:
Electric $ - $ - $ -
Gas 325 726 - -
Steam - - -
Other - 1 118 10 126
325 726 1 118 10 126
OPERATING EXPENSES:
Fuel used in electric and steam
production, principally oil - - -
Electricity purchased for resale - - -
Cost of gas sold 188 769 - -
Other operation 75 874 1 159 7 014
Maintenance 11 809 - -
Depreciation 9 559 - 1 178
Taxes -
Local property 5 336 - 574
Federal and state income -
Current 4 305 (445) 272
Deferred 3 883 617 105
Investment tax credits, net (205) - (27)
Payroll and other 2 715 - 17
302 045 1 331 9 133
OPERATING INCOME (LOSS) 23 681 (213) 993
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries - - -
Interest - subsidiaries - - -
Other, net 421 324 24
421 324 24
TOTAL INCOME 24 102 111 1 017
INTEREST CHARGES:
Long-term debt 8 488 - 465
Intercompany advances 400 - -
Other interest charges 1 673 - 4
Allowance for borrowed funds used
during construction (27) - -
10 534 - 469
NET INCOME (LOSS) $ 13 568 $ 111 $ 548
<PAGE 10>
EXHIBIT A-2
PAGE 1 of 8
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
SUMMARY OF ELIMINATIONS AND RECLASSIFICATIONS
TO
CONSOLIDATING STATEMENT OF INCOME
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1994
(Dollars in Thousands)
ENTRY NUMBER (See Pages 4-8 for detail)
TOTAL 1 2 3 4 5
STATEMENT OF INCOME CAPTION
OPERATING REVENUES:
Electric $125 469 $47 307 $31 288 $ 2 031 $43 239 $ -
Gas 2 158 - - - - 2 158
Other 45 583 - - - - -
OPERATING EXPENSES:
Fuel used in electric
and steam production 389 - - - - 665
Electricity purchased
for resale 118 743 45 906 27 827 2 031 42 979 -
Cost of gas sold 11 619 - - - - 1 493
Other operation 42 546 1 401 3 461 - 260 -
OTHER INCOME:
Equity in earnings of
subsidiaries 52 735 - - - - -
Interest - subsidiaries 848 - - - - -
Other, net 671 - - - - -
INTEREST CHARGES:
Intercompany advances 1 423 - - - - -
Other interest charges 9 - - - - -
NET INCOME $ 52 735
<PAGE 11>
EXHIBIT A-2
PAGE 2 of 8
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
SUMMARY OF ELIMINATIONS AND RECLASSIFICATIONS
TO
CONSOLIDATING STATEMENT OF INCOME
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1994
(Dollars in Thousands)
ENTRY NUMBER (See Pages 4-8 for detail)
6 7 8 9 10 11
STATEMENT OF INCOME CAPTION
OPERATING REVENUES:
Electric $1 543 $ - $ - $ - $ - $ 61
Gas - - - - - -
Other - 35 457 - - - -
OPERATING EXPENSES:
Fuel used in electric
and steam production - - - - - -
Electricity purchased
for resale - - - - - -
Cost of gas sold - - - - - -
Other operation 1 543 35 457 - - - 61
OTHER INCOME:
Equity in earnings of
subsidiaries - - 52 735 - - -
Interest - subsidiaries - - - 848 - -
Other, net - - - - 575 -
INTEREST CHARGES:
Intercompany advances - - - 848 575 -
Other interest charges - - - - - -
NET INCOME $52 735
<PAGE 12>
EXHIBIT A-2
PAGE 3 of 8
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
SUMMARY OF ELIMINATIONS AND RECLASSIFICATIONS
TO
CONSOLIDATING STATEMENT OF INCOME
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1994
(Dollars in Thousands)
ENTRY NUMBER (See Pages 4-8 for detail)
12 13 14 15
STATEMENT OF INCOME CAPTION
OPERATING REVENUES:
Electric $ - $ - $ - $ -
Gas - - - -
Other - - - 10 126
OPERATING EXPENSES:
Fuel used in electric
and steam production (276) - - -
Electricity purchased
for resale - - - -
Cost of gas sold - - - 10 126
Other operation 276 87 - -
OTHER INCOME:
Equity in earnings of
subsidiaries - - - -
Interest - subsidiaries - - - -
Other, net - 87 9 -
INTEREST CHARGES:
Intercompany advances - - - -
Other interest charges - - 9 -
NET INCOME
<PAGE 13>
EXHIBIT A-2
PAGE 4 of 8
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
ELIMINATIONS AND RECLASSIFICATIONS
TO
CONSOLIDATING STATEMENT OF INCOME
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1994
(Dollars in Thousands)
No. 1
OPERATING REVENUES:
Electric $47 307
OPERATING EXPENSES:
Electricity purchased for resale $45 906
Other operation 1 401
To eliminate intercompany sales of electricity as follows:
OPERATING EXPENSES
OPERATING Electricity
REVENUES Purchased Other
Electric for Resale Operation
Canal Electric Company $45 906 $ - $ -
Cambridge Electric Light Company - 11 650 -
Commonwealth Electric Company - 34 256 -
Commonwealth Electric Company 1 401 - -
Canal Electric Company - - 1 261
Commonwealth Gas Company - - 140
$47 307 $45 906 $ 1 401
No. 2
OPERATING REVENUES:
Electric $31 288
OPERATING EXPENSES:
Electricity purchased for resale $27 827
Other operation 3 461
To eliminate electricity purchased from third parties by Canal
Electric Company, acting as agent for Commonwealth Electric
Company and Cambridge Electric Light Company, including related
transmission costs.
No. 3
OPERATING REVENUES:
Electric $ 2 031
OPERATING EXPENSES:
Electricity purchased for resale $ 2 031
To eliminate intercompany charges relating to the abandonment of
Seabrook 2 billed by Canal Electric Company to Commonwealth
Electric Company and Cambridge Electric Light Company.
<PAGE 14>
EXHIBIT A-2
PAGE 5 of 8
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
ELIMINATIONS AND RECLASSIFICATIONS
TO
CONSOLIDATING STATEMENT OF INCOME
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1994
(Dollars in Thousands)
No. 4
OPERATING REVENUES:
Electric $43 239
OPERATING EXPENSES:
Electricity purchased for resale $42 979
Other operation 260
To eliminate intercompany sales of electricity, including transmission costs,
by Canal Electric Company to Commonwealth Electric Company
($34,617,000) and Cambridge Electric Light Company ($8,622,000)
from the Seabrook nuclear power plant.
No. 5
OPERATING REVENUES:
Gas $ 2 158
OPERATING EXPENSES:
Fuel used in electric and steam production $ 665
Cost of gas sold 1 493
To eliminate intercompany sales of gas and end-user transportation
charges by Commonwealth Gas Company to Cambridge Electric
Light Company.
No. 6
OPERATING REVENUES:
Electric $ 1 543
OPERATING EXPENSES:
Other operation $ 1 543
To eliminate intercompany rents billed by Commonwealth Electric
Company to Cambridge Electric Light Company and Canal
Electric Company.
No. 7
OPERATING REVENUES:
Other $35 457
OPERATING EXPENSES:
Other operation $35 457
To eliminate intercompany billing by COM/Energy Services Company
to the other subsidiaries.
<PAGE 15>
EXHIBIT A-2
PAGE 6 of 8
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
ELIMINATIONS AND RECLASSIFICATIONS
TO
CONSOLIDATING STATEMENT OF INCOME
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1994
(Dollars in Thousands)
No. 8
OTHER INCOME:
Equity in earnings of subsidiaries $52 735
RETAINED EARNINGS $52 735
To eliminate Commonwealth Energy System's equity in 1994
earnings (losses) of subsidiaries as follows:
Cambridge Electric Light Company $ 6 242
Canal Electric Company 14 158
COM/Energy Acushnet Realty 66
COM/Energy Cambridge Realty (17)
COM/Energy Freetown Realty (335)
COM/Energy Research Park Realty 296
COM/Energy Services Company 49
COM/Energy Steam Company 1 976
Commonwealth Electric Company 16 073
Commonwealth Gas Company 13 568
Darvel Realty Trust 111
Hopkinton LNG Corp. 548
$52 735
No. 9
OTHER INCOME:
Interest - subsidiaries $ 848
INTEREST CHARGES:
Intercompany advances $ 848
To eliminate interest income of Commonwealth Energy System
from subsidiaries as follows:
Cambridge Electric Light Company $ 20
Canal Electric Company 678
COM/Energy Freetown Realty 15
Commonwealth Electric Company 5
Commonwealth Gas Company 122
COM/Energy Steam Company 8
$ 848
<PAGE 16>
EXHIBIT A-2
PAGE 7 of 8
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
ELIMINATIONS AND RECLASSIFICATIONS
TO
CONSOLIDATING STATEMENT OF INCOME
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1994
(Dollars in Thousands)
No. 10
OTHER INCOME:
Other, net $ 575
INTEREST CHARGES:
Intercompany advances $ 575
To eliminate intercompany interest income and expense as follows:
Income Expense
Cambridge Electric Light Company $ 18 $ 20
Canal Electric Company - 271
COM/Energy Acushnet Realty 4 -
COM/Energy Cambridge Realty 2 -
Darvel Realty Trust 318 -
COM/Energy Research Park Realty 20 -
COM/Energy Steam Company 19 -
Hopkinton LNG Corp. 25 -
Commonwealth Electric Company 167 6
Commonwealth Gas Company 2 278
$ 575 $ 575
No. 11
OPERATING REVENUES:
Electric $ 61
OPERATING EXPENSES:
Other operation 61
To eliminate intercompany billing of fixed charges on a transformer
by Canal Electric Company to Commonwealth Electric Company.
No. 12
OPERATING EXPENSES:
Fuel used in electric and steam production $ 276
OPERATING EXPENSES:
Other operation $ 276
To eliminate intercompany billing for operating expenses from
Cambridge Electric Light Company to COM/Energy Steam Company.
<PAGE 17>
EXHIBIT A-2
PAGE 8 of 8
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
ELIMINATIONS AND RECLASSIFICATIONS
TO
CONSOLIDATING STATEMENT OF INCOME
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1994
(Dollars in Thousands)
No. 13
OTHER INCOME:
Other, net $ 87
OPERATING EXPENSES:
Other operation $ 87
To eliminate intercompany rent billed by Cambridge Electric Light
Company to COM/Energy Steam Company.
No. 14
INTEREST INCOME:
Other, net $ 9
INTEREST CHARGES:
Other interest charges $ 9
To reclassify interest income and expense on contested income tax
issues.
No. 15
OPERATING REVENUES:
Other $10 126
OPERATING EXPENSES:
Cost of Gas Sold $10 126
To eliminate intercompany billing by Hopkinton LNG Corp. to Commonwealth
Gas Company.
<PAGE 18>
EXHIBIT A-3
PAGE 1 of 5
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1994
(Dollars in Thousands)
Eliminations
and Reclass-
Consolidated ifications Total
Balance at December 31, 1993 $201 233 $ 60 069 $261 302
Add-
Net income for the year 48 968 52 735 101 703
250 201 112 804 363 005
Deduct-
Cash dividends-
System-
Common shares 31 305 - 31 305
Preferred shares 1 170 - 1 170
Subsidiaries-
Common stock - 49 671 49 671
32 475 49 671 82 146
Balance at December 31, 1994 $217 726 $ 63 133 $280 859
<PAGE 19>
EXHIBIT A-3
PAGE 2 of 5
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1994
(Dollars in Thousands)
Cambridge
Commonwealth Electric
Energy Subsidiaries Light
System Combined Company
Balance at December 31, 1993 $201 233 $ 60 069 $ 7 056
Add-
Net income for the year 48 968 52 735 6 242
250 201 112 804 13 298
Deduct-
Cash dividends-
System-
Common shares 31 305 - -
Preferred shares 1 170 - -
Subsidiaries-
Common stock - 49 671 6 132
32 475 49 671 6 132
Balance at December 31, 1994 $217 726 $ 63 133 $ 7 166
<PAGE 20>
EXHIBIT A-3
PAGE 3 of 5
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1994
(Dollars in Thousands)
Canal COM/Energy COM/Energy COM/Energy
Electric Acushnet Cambridge Freetown
Company Realty Realty Realty
Balance at December 31, 1993 $ 48 151 $ 233 $ 49 $(19 832)
Add-
Net income for the year 14 158 66 (17) (335)
62 309 299 32 (20 167)
Deduct-
Cash dividends-
System-
Common shares - - - -
Preferred shares - - - -
Subsidiaries-
Common stock 10 662 100 - -
10 662 100 - -
Balance at December 31, 1994 $ 51 647 $ 199 $ 32 $(20 167)
<PAGE 21>
EXHIBIT A-3
PAGE 4 of 5
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1994
(Dollars in Thousands)
Common-
COM/Energy COM/Energy COM/Energy wealth
Research Services Steam Electric
Park Realty Company Company Company
Balance at December 31, 1993 $ 695 $ 12 $ 771 $15 118
Add-
Net income for the year 296 49 1 976 16 073
991 61 2 747 31 191
Deduct-
Cash dividends-
System-
Common shares - - - -
Preferred shares - - - -
Subsidiaries-
Common stock 455 49 1 187 15 841
455 49 1 187 15 841
Balance at December 31, 1994 $ 536 $ 12 $ 1 560 $15 350
<PAGE 22>
EXHIBIT A-3
PAGE 5 of 5
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1994
(Dollars in Thousands)
Common-
wealth Darvel Hopkinton
Gas Realty LNG
Company Trust Corp.
Balance at December 31, 1993 $ 7 840 $ (543) $ 519
Add-
Net income for the year 13 568 111 548
21 408 (432) 1 067
Deduct-
Cash dividends-
System-
Common shares - - -
Preferred shares - - -
Subsidiaries-
Common stock 14 571 - 674
14 571 - 674
Balance at December 31, 1994 $ 6 837 $ (432) $ 393
<PAGE 23>
EXHIBIT A-4
PAGE 1 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1994
(Dollars in Thousands)
Eliminations
and Reclass-
Consolidated ifications Total
PROPERTY, PLANT AND EQUIPMENT,
at original cost:
Electric $1 061 259 $ - $1 061 259
Gas 338 830 - 338 830
Other 60 349 286 60 635
Leased property, net 15 729 - 15 729
1 476 167 286 1 476 453
Less: Accumulated depreciation
and amortization 461 310 - 461 310
Net Property, Plant and Equipment 1 014 857 286 1 015 143
INVESTMENTS:
Equity in common stock and earnings
of subsidiary companies - 427 904 427 904
Advances to associate companies - 21 785 21 785
Equity in corporate joint ventures-
Nuclear electric power companies
(2.5% to 4.5%) 9 818 - 9 818
Other, at cost 3 830 - 3 830
13 648 449 689 463 337
CURRENT ASSETS:
Cash 7 722 - 7 722
Accounts receivable:
Affiliated companies - 18 056 18 056
Other 100 112 - 100 112
Reserve for uncollectible accounts (7 955) - (7 955)
Unbilled revenues 33 161 - 33 161
Inventories, at average cost-
Materials and supplies 7 736 - 7 736
Natural gas 24 161 - 24 161
Electric production fuel oil 1 689 - 1 689
Prepaid property taxes 8 806 - 8 806
Prepaid income taxes - 1 590 1 590
Other 5 858 43 5 901
Total Current Assets 181 290 19 689 200 979
DEFERRED CHARGES 134 921 7 394 142 315
TOTAL $1 344 716 $ 477 058 $1 821 774
<PAGE 24>
EXHIBIT A-4
PAGE 2 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1994
(Dollars in Thousands)
Cambridge
Commonwealth Electric
Energy Subsidiaries Light
System Combined Company
PROPERTY, PLANT AND EQUIPMENT,
at original cost:
Electric $ - $1 061 259 $ 145 658
Gas - 338 830 -
Other - 60 635 6 738
Leased property, net - 15 729 -
- 1 476 453 152 396
Less: Accumulated depreciation
and amortization - 461 310 55 618
Net Property, Plant and Equipment - 1 015 143 96 778
INVESTMENTS:
Equity in common stock and earnings
of subsidiary companies 427 904 - -
Advances to associate companies 13 360 8 425 -
Equity in corporate joint ventures-
Nuclear electric power companies
(2.5% to 4.5%) - 9 818 9 164
Other, at cost - 3 830 5
441 264 22 073 9 169
CURRENT ASSETS:
Cash 366 7 356 376
Accounts receivable:
Affiliated companies 290 17 766 917
Other - 100 112 10 306
Reserve for uncollectible accounts - (7 955) (471)
Unbilled revenues - 33 161 3 088
Inventories, at average cost-
Materials and supplies - 7 736 577
Natural gas - 24 161 -
Electric production fuel oil - 1 689 804
Prepaid property taxes - 8 806 1 702
Prepaid income taxes 291 1 299 -
Other 30 5 871 730
Total Current Assets 977 200 002 18 029
DEFERRED CHARGES 271 142 044 13 733
TOTAL $ 442 512 $1 379 262 $ 137 709
<PAGE 25>
EXHIBIT A-4
PAGE 3 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1994
(Dollars in Thousands)
COM/ COM/ COM/
Canal Energy Energy Energy
Electric Acushnet Cambridge Freetown
Company Realty Realty Realty
PROPERTY, PLANT AND EQUIPMENT,
at original cost:
Electric $416 028 $ - $ - $ -
Gas - - - -
Other 9 423 11 2 980
Leased property, net 13 844 - - -
429 881 423 11 2 980
Less: Accumulated depreciation
and amortization 150 337 - - -
Net Property, Plant and Equipment 279 544 423 11 2 980
INVESTMENTS:
Equity in common stock and earnings
of subsidiary companies - - - -
Advances to associate companies - 50 35 -
Equity in corporate joint ventures-
Nuclear electric power companies
(2.5% to 4.5%) - - - -
Other, at cost 3 802 - - -
3 802 50 35 -
CURRENT ASSETS:
Cash 12 11 11 10
Accounts receivable:
Affiliated companies 7 935 - - -
Other 9 100 27 - -
Reserve for uncollectible accounts - - - -
Unbilled revenues - - - -
Inventories, at average cost-
Materials and supplies 1 408 - - -
Natural gas - - - -
Electric production fuel oil 736 - - -
Prepaid property taxes 932 13 2 111
Prepaid income taxes 132 - - -
Other 1 277 - 2 12
Total Current Assets 21 532 51 15 133
DEFERRED CHARGES 25 070 23 - 3 882
TOTAL $329 948 $ 547 $ 61 $ 6 995
<PAGE 26>
EXHIBIT A-4
PAGE 4 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1994
(Dollars in Thousands)
COM/ COM/ COM/ Common-
Energy Energy Energy wealth
Research Services Steam Electric
Park Realty Company Company Company
PROPERTY, PLANT AND EQUIPMENT,
at original cost:
Electric $ - $ - $ - $499 573
Gas - - - -
Other 384 251 6 926 1 809
Leased property, net - 1 885 - -
384 2 136 6 926 501 382
Less: Accumulated depreciation
and amortization 124 251 3 801 143 877
Net Property, Plant and Equipment 260 1 885 3 125 357 505
INVESTMENTS:
Equity in common stock and earnings
of subsidiary companies - - - -
Advances to associate companies 415 - - -
Equity in corporate joint ventures-
Nuclear electric power companies
(2.5% to 4.5%) - - - 654
Other, at cost - - - 14
415 - - 668
CURRENT ASSETS:
Cash 6 126 9 1 637
Accounts receivable:
Affiliated companies - 3 639 - 3 713
Other 17 320 2 016 40 703
Reserve for uncollectible accounts - - - (2 841)
Unbilled revenues - - 282 8 899
Inventories, at average cost-
Materials and supplies - - 6 4 152
Natural gas - - - -
Electric production fuel oil - - - 149
Prepaid property taxes 95 - 38 2 739
Prepaid income taxes - - - -
Other 5 588 38 1 731
Total Current Assets 123 4 673 2 389 60 882
DEFERRED CHARGES 381 4 568 65 57 831
TOTAL $ 1 179 $ 11 126 $ 5 579 $476 886
<PAGE 27>
EXHIBIT A-4
PAGE 5 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1994
(Dollars in Thousands)
Common-
wealth Darvel Hopkinton
Gas Realty LNG
Company Trust Corp.
PROPERTY, PLANT AND EQUIPMENT,
at original cost:
Electric $ - $ - $ -
Gas 338 830 - -
Other 1 365 1 778 37 961
Leased property, net - - -
340 195 1 778 37 961
Less: Accumulated depreciation
and amortization 85 162 - 22 140
Net Property, Plant and Equipment 255 033 1 778 15 821
INVESTMENTS:
Equity in common stock and earnings
of subsidiary companies - - -
Advances to associate companies - 7 480 445
Equity in corporate joint ventures-
Nuclear electric power companies
(2.5% to 4.5%) - - -
Other, at cost 9 - -
9 7 480 445
CURRENT ASSETS:
Cash 4 862 7 289
Accounts receivable:
Affiliated companies 462 - 1 100
Other 35 717 1 826 80
Reserve for uncollectible accounts (2 827) (1 816) -
Unbilled revenues 20 892 - -
Inventories, at average cost-
Materials and supplies 1 593 - -
Natural gas 24 161 - -
Electric production fuel oil - - -
Prepaid property taxes 2 861 - 313
Prepaid income taxes 619 379 169
Other 1 076 37 375
Total Current Assets 89 416 433 2 326
DEFERRED CHARGES 36 347 107 37
TOTAL $380 805 $ 9 798 $ 18 629
<PAGE 28>
EXHIBIT A-4
PAGE 6 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - CAPITALIZATION AND LIABILITIES
DECEMBER 31, 1994
(Dollars in Thousands)
Eliminations
and Reclass-
Consolidated ifications Total
CAPITALIZATION:
Common Shares - Commonwealth Energy
System $4 par value, 10,525,897
shares outstanding (230,820 shares
issued during 1994) $ 42 103 $ - $ 42 103
Subsidiaries - 200 594 200 594
Amounts paid in excess of par value 103 168 164 575 267 743
Retained earnings 217 726 63 133 280 859
Total Common Share Equity 362 997 428 302 791 299
Redeemable Preferred Shares, $100 par
value, less current sinking fund
requirements:
Series A, 4.80%, 28,800 shares
authorized and outstanding 2 760 - 2 760
Series B, 8.10%, 43,200 shares
authorized and outstanding 4 160 - 4 160
Series C, 7 3/4%, 82,800 shares
authorized and outstanding 7 740 - 7 740
Long-Term Debt, including premiums,
less current sinking fund require-
ments and maturities 418 307 - 418 307
Total Capitalization 795 964 428 302 1 224 266
Capital Lease Obligations-Non Current 14 098 - 14 098
CURRENT LIABILITIES:
Interim Financing -
Notes payable to banks 44 850 - 44 850
Advances from affiliates - 21 785 21 785
Maturing long-term debt 25 000 - 25 000
Total Interim Financing 69 850 21 785 91 635
Other Current Liabilities -
Current sinking fund requirements 6 793 - 6 793
Accounts payable -
Affiliates - 18 056 18 056
Other 117 953 - 117 953
Dividends declared 7 894 - 7 894
Customers' deposits 4 190 - 4 190
Accrued taxes -
Income 7 654 1 590 9 244
Local property and other 10 293 - 10 293
Accrued interest 7 251 43 7 294
Capital lease obligations 1 631 - 1 631
Other 17 538 - 17 538
Total Other Current Liabilities 181 197 19 689 200 886
Total Current Liabilities 251 047 41 474 292 521
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes 160 944 7 282 168 226
Unamortized investment tax credits 29 304 - 29 304
Other 93 359 - 93 359
Total Deferred Credits and Reserves 283 607 7 282 290 889
TOTAL $1 344 716 $ 477 058 $1 821 774
<PAGE 29>
EXHIBIT A-4
PAGE 7 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - CAPITALIZATION AND LIABILITIES
DECEMBER 31, 1994
(Dollars in Thousands)
Cambridge
Commonwealth Electric
Energy Subsidiaries Light
System Combined Company
CAPITALIZATION:
Common Shares - Commonwealth Energy
System $4 par value, 10,525 897
shares outstanding (230,820 shares
issued during 1994) $ 42 103 $ - $ -
Subsidiaries - 200 594 8 665
Amounts paid in excess of par value 103 168 164 575 27 953
Retained earnings 217 726 63 133 7 166
Total Common Share Equity 362 997 428 302 43 784
Redeemable Preferred Shares, $100 par
value, less current sinking fund
requirements:
Series A, 4.80%, 28,800 shares
authorized and outstanding 2 760 - -
Series B, 8.10%, 43,200 shares
authorized and outstanding 4 160 - -
Series C, 7 3/4%, 82,800 shares
authorized and outstanding 7 740 - -
Long-Term Debt, including premiums,
less current sinking fund require-
ments and maturities 30 000 388 307 42 027
Total Capitalization 407 657 816 609 85 811
Capital Lease Obligations-Non Current - 14 098 -
CURRENT LIABILITIES:
Interim Financing -
Notes payable to banks - 44 850 2 175
Advances from affiliates - 21 785 550
Maturing long-term debt 25 000 - -
Total Interim Financing 25 000 66 635 2 725
Other Current Liabilities -
Current sinking fund requirements 820 5 973 160
Accounts payable -
Affiliates 128 17 928 4 212
Other 493 117 460 8 359
Dividends declared 7 894 - -
Customers' deposits - 4 190 453
Accrued taxes -
Income - 9 244 667
Local property and other - 10 293 1 711
Accrued interest 35 7 259 994
Capital lease obligations - 1 631 -
Other 23 17 515 1 425
Total Other Current Liabilities 9 393 191 493 17 981
Total Current Liabilities 34 393 258 128 20 706
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes - 168 226 12 639
Unamortized investment tax credits - 29 304 2 035
Other 462 92 897 16 518
Total Deferred Credits and Reserves 462 290 427 31 192
TOTAL $ 442 512 $1 379 262 $ 137 709
<PAGE 30>
EXHIBIT A-4
PAGE 8 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - CAPITALIZATION AND LIABILITIES
DECEMBER 31, 1994
(Dollars in Thousands)
COM/ COM/ COM/
Canal Energy Energy Energy
Electric Acushnet Cambridge Freetown
Company Realty Realty Realty
CAPITALIZATION:
Common Shares - Commonwealth Energy
System $4 par value, 10,525,897
shares outstanding (230,820 shares
issued during 1994) $ - $ - $ - $ -
Subsidiaries 38 080 325 25 26 000
Amounts paid in excess of par value 8 321 - - -
Retained earnings 51 647 199 32 (20 167)
Total Common Share Equity 98 048 524 57 5 833
Redeemable Preferred Shares, $100 par
value, less current sinking fund
requirements:
Series A, 4.80%, 28,800 shares
authorized and outstanding - - - -
Series B, 8.10%, 43,200 shares
authorized and outstanding - - - -
Series C, 7 3/4%, 82,800 shares
authorized and outstanding - - - -
Long-Term Debt, including premiums,
less current sinking fund require-
ments and maturities 87 713 - - -
Total Capitalization 185 761 524 57 5 833
Capital Lease Obligations-Non Current 13 258 - - -
CURRENT LIABILITIES:
Interim Financing -
Notes payable to banks 11 325 - - -
Advances from affiliates 9 350 - - 360
Maturing long-term debt - - - -
Total Interim Financing 20 675 - - 360
Other Current Liabilities -
Current sinking fund requirements 1 110 - - -
Accounts payable -
Affiliates 1 932 5 1 194
Other 14 857 - - -
Dividends declared - - - -
Customers' deposits - - - -
Accrued taxes -
Income 71 4 - 130
Local property and other 977 13 3 111
Accrued interest 1 503 - - -
Capital lease obligations 586 - - -
Other 2 617 - - 367
Total Other Current Liabilities 23 653 22 4 802
Total Current Liabilities 44 328 22 4 1 162
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes 68 732 1 - -
Unamortized investment tax credits 12 658 - - -
Other 5 211 - - -
Total Deferred Credits and Reserves 86 601 1 - -
TOTAL $329 948 $ 547 $ 61 $ 6 995
<PAGE 31>
EXHIBIT A-4
PAGE 9 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - CAPITALIZATION AND LIABILITIES
DECEMBER 31, 1994
(Dollars in Thousands)
COM/ COM/ COM/ Common-
Energy Energy Energy wealth
Research Services Steam Electric
Park Realty Company Company Company
CAPITALIZATION:
Common Shares - Commonwealth Energy
System $4 par value, 10,525,897
shares outstanding (230,820 shares
issued during 1994) $ - $ - $ - $ -
Subsidiaries 350 325 2 550 51 099
Amounts paid in excess of par value - - - 97 112
Retained earnings 536 12 1 560 15 350
Total Common Share Equity 886 337 4 110 163 561
Redeemable Preferred Shares, $100 par
value, less current sinking fund
requirements:
Series A, 4.80%, 28,800 shares
authorized and outstanding - - - -
Series B, 8.10%, 43,200 shares
authorized and outstanding - - - -
Series C, 7 3/4%, 82,800 shares
authorized and outstanding - - - -
Long-Term Debt, including premiums,
less current sinking fund require-
ments and maturities - - - 157 817
Total Capitalization 886 337 4 110 321 378
Capital Lease Obligations-Non Current - 840 - -
CURRENT LIABILITIES:
Interim Financing -
Notes payable to banks - - - 6 400
Advances from affiliates - - 105 200
Maturing long-term debt - - - -
Total Interim Financing - - 105 6 600
Other Current Liabilities -
Current sinking fund requirements - - - 1 053
Accounts payable -
Affiliates 3 219 855 7 716
Other - 372 72 31 911
Dividends declared - - - -
Customers' deposits - - - 2 304
Accrued taxes -
Income 33 142 148 8 049
Local property and other 95 8 38 3 721
Accrued interest - - - 3 966
Capital lease obligations - 1 045 - -
Other 6 473 4 7 421
Total Other Current Liabilities 137 2 259 1 117 66 141
Total Current Liabilities 137 2 259 1 222 72 741
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes 61 - 30 42 074
Unamortized investment tax credits - - 43 7 994
Other 95 7 690 174 32 699
Total Deferred Credits and Reserves 156 7 690 247 82 767
TOTAL $ 1 179 $ 11 126 $ 5 579 $476 886
<PAGE 32>
EXHIBIT A-4
PAGE 10 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - CAPITALIZATION AND LIABILITIES
DECEMBER 31, 1994
(Dollars in Thousands)
Common-
wealth Darvel Hopkinton
Gas Realty LNG
Company Trust Corp.
CAPITALIZATION:
Common Shares - Commonwealth Energy
System $4 par value, 10,525,897
shares outstanding (230,820 shares
issued during 1994) $ - $ - $ -
Subsidiaries 71 425 1 700 50
Amounts paid in excess of par value 27 739 - 3 450
Retained earnings 6 837 (432) 393
Total Common Share Equity 106 001 1 268 3 893
Redeemable Preferred Shares, $100 par
value, less current sinking fund
requirements:
Series A, 4.80%, 28,800 shares
authorized and outstanding - - -
Series B, 8.10%, 43,200 shares
authorized and outstanding - - -
Series C, 7 3/4%, 82,800 shares
authorized and outstanding - - -
Long-Term Debt, including premiums,
less current sinking fund require-
ments and maturities 91 750 - 9 000
Total Capitalization 197 751 1 268 12 893
Capital Lease Obligations-Non Current - - -
CURRENT LIABILITIES:
Interim Financing -
Notes payable to banks 24 950 - -
Advances from affiliates 11 220 - -
Maturing long-term debt - - -
Total Interim Financing 36 170 - -
Other Current Liabilities -
Current sinking fund requirements 3 650 - -
Accounts payable -
Affiliates 2 669 19 103
Other 61 046 - 843
Dividends declared - - -
Customers' deposits 1 433 - -
Accrued taxes -
Income - - -
Local property and other 3 317 - 299
Accrued interest 749 - 47
Capital lease obligations - - -
Other 4 746 12 444
Total Other Current Liabilities 77 610 31 1 736
Total Current Liabilities 113 780 31 1 736
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes 32 699 8 499 3 491
Unamortized investment tax credits 6 065 - 509
Other 30 510 - -
Total Deferred Credits and Reserves 69 274 8 499 4 000
TOTAL $380 805 $ 9 798 $ 18 629
<PAGE 33>
EXHIBIT A-4
PAGE 11 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
NOTE TO CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1994
(Dollars in Thousands)
Consolidated long-term debt, including Less Current
premiums, at December 31, 1994 is Sinking Fund
summarized as follows: Requirements
Amount and Current
Bonds, Mortgages and Similar Debt - Outstanding Maturities Net
Commonwealth Energy System -
6-Year 10.39% Senior Notes, Due 6/28/95 $ 10 000
8-Year 10.48% Senior Notes, Due 6/28/97 10 000
9-Year 10.45% Senior Notes, Due 6/28/98 10 000
10-Year 10.58% Senior Notes, Due 6/28/99 10 000
Term Loan, 4.7%, Due 11/22/95 15 000
55 000 $25 000 $30 000
Cambridge Electric Light Company -
30-Year 6 1/4% Notes, Series C, Due 6/1/97 4 383
30-Year 7 3/4% Notes, Series D, Due 6/1/02 2 804
7-Year 9.97% Notes, Series F, Due 4/1/96 20 000
7-Year 8.04% Notes, Series G, Due 3/1/99 10 000
15-Year 8.7% Notes, Series H, Due 3/1/07 5 000
42 187 160 42 027
Canal Electric Company -
First Mortgage Bonds, Series A,
7%, Due 10/1/96 4 561
First and General Mortgage Bonds:
Series B, 8.85%, Due 9/1/06 35 007
Series E, 7 3/8%, Due 12/1/20 9 957
Series F, 9 7/8%, Due 12/1/20 39 298
88 823 1 110 87 713
Commonwealth Gas Company -
First Mortgage Bonds:
Series H, 8.99%, Due 10/1/96 10 000
Series I, 8.99%, Due 12/1/01 25 400
Series J, 9.95%, Due 12/1/20 25 000
Series D, 7.11%, Due 12/30/33 35 000
95 400 3 650 91 750
Commonwealth Electric Company -
Notes:
15-Year, 9.50%, Due 12/1/04 15 000
18-Year, 9.55%, Due 12/1/07 10 000
25-Year, 9.53%, Due 12/1/14 10 000
30-Year, 9.60%, Due 12/1/19 10 000
10-Year, 7.43%, Due 1/1/03 15 000
15-Year, 7.70%, Due 1/1/08 10 000
20-Year, 7.98%, Due 1/1/13 25 000
30-Year, 8.47%, Due 1/1/23 15 000
Term Loans:
15-Year 9.30%, Due 1/1/02 29 922
25-Year 9.37%, Due 1/1/12 18 948
158 870 1 053 157 817
Hopkinton LNG Corp. -
5-Year Term Loan, variable rate,
6.75% at 12/31/94, Due 12/29/98 9 000 - 9 000
$449 280 $30 973 $418 307
<PAGE 34>
EXHIBIT A-5
PAGE 1 of 5
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
SUMMARY OF ELIMINATIONS AND RECLASSIFICATIONS
TO
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1994
(Dollars in Thousands)
ENTRY NUMBER
(See Pages 3, 4, and 5)
ASSETS Total 1 2
PROPERTY, PLANT AND EQUIPMENT:
Other $ 286 $ - $ -
INVESTMENTS:
Equity in common stock and earnings of
subsidiary companies 427 904 427 904 -
Advances to associate companies 21 785 - 21 785
449 689 427 904 21 785
CURRENT ASSETS:
Accounts receivable -
affiliated companies 18 056 - 18 056
Prepaid income taxes 1 590 - -
Other 43 - -
19 689 - 18 056
DEFERRED CHARGES 7 394 - -
$477 058 $427 904 $ 39 841
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common Shares -
Subsidiaries $200 594 $200 594 $ -
Amounts paid in excess of par value 164 575 164 575 -
Retained earnings 63 133 62 735 -
Total Common Share Equity 428 302 427 904 -
CURRENT LIABILITIES:
Interim Financing -
Notes payable to parent 21 785 - 21 785
Other Current Liabilities -
Accounts payable - affiliated companies 18 056 - 18 056
Accrued taxes - income 1 590 - -
Accrued interest 43 - -
19 689 - 18 056
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes 7 282 - -
$477 058 $427 904 $ 39 841
<PAGE 35>
EXHIBIT A-5
PAGE 2 of 5
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
SUMMARY OF ELIMINATIONS AND RECLASSIFICATIONS
TO
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1994
(Dollars in Thousands)
ENTRY NUMBER
(See Pages 3, 4, and 5)
ASSETS 3 4 5
PROPERTY, PLANT AND EQUIPMENT:
Other $ 286 $ - $ -
INVESTMENTS:
Equity in common stock and earnings of
subsidiary companies - - -
Advances to associate companies - - -
- - -
CURRENT ASSETS:
Accounts receivable -
affiliated companies - - -
Prepaid income taxes - 1 590 -
Other - - 43
- 1 590 43
DEFERRED CHARGES - 7 394 -
$ 286 $ 8 984 $ 43
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common Shares -
Subsidiaries $ - $ - $ -
Amounts paid in excess of par value - - -
Retained earnings 398 - -
Total Common Share Equity 398 - -
CURRENT LIABILITIES:
Interim Financing -
Notes payable to parent - - -
Other Current Liabilities -
Accounts payable - affiliated companies - - -
Accrued taxes - income - 1 590 -
Accrued interest - - 43
- 1 590 43
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes (112) 7 394 -
$ 286 $ 8 984 $ 43
<PAGE 36>
EXHIBIT A-5
PAGE 3 of 5
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
ELIMINATIONS AND RECLASSIFICATIONS
TO
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1994
(Dollars in Thousands)
No. 1
Common shares - subsidiaries $200 594
Amounts paid in excess of par value 164 575
Retained Earnings 62 735
INVESTMENTS - Equity in common stock and earnings
of subsidiaries $427 904
To eliminate Parent company investment in common stock and
earnings of subsidiary companies. Income of subsidiaries
recorded on equity accounting basis on Parent company
statements.
Common
Shares Amounts Paid System's
Par in Excess of Retained Equity in
Value Par Value Earnings Subsidiaries
Cambridge Electric Light Company $ 8 665 $ 27 953 $ 7 166 $ 43 784
Canal Electric Company 38 080 8 321 51 647 98 048
COM/Energy Acushnet Realty 325 - 199 524
COM/Energy Cambridge Realty 25 - 32 57
COM/Energy Freetown Realty 26 000 - (20 167) 5 833
COM/Energy Research Park Realty 350 - 536 886
COM/Energy Services Company 325 - 12 337
COM/Energy Steam Company 2 550 - 1 560 4 110
Commonwealth Electric Company 51 099 97 112 15 350 163 561
Commonwealth Gas Company 71 425 27 739 6 837 106 001
Darvel Realty Trust 1 700 - (830) 870
Hopkinton LNG Corp. 50 3 450 393 3 893
$200 594 $164 575 $ 62 735 $427 904
No. 2
Advances from affiliates $21 785
Accounts payable - Affiliates 18 056
INVESTMENTS - Advances to affiliates $21 785
Accounts receivable - Affiliates 18 056
To eliminate intercompany accounts as follows:
<PAGE 37>
EXHIBIT A-5
PAGE 4 of 5
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
ELIMINATIONS AND RECLASSIFICATIONS
TO
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1994
(Dollars in Thousands)
Investments- Accounts Advances Accounts
Advances to Receivable- from Payable-
Affiliates Affiliates Affiliates Affiliates
Cambridge Electric Light Company $ - $ 917 $ 550 $ 4 212
Canal Electric Company - 7 935 9 350 1 932
COM/Energy Acushnet Realty 50 - - 5
COM/Energy Freetown Realty - - 360 194
COM/Energy Cambridge Realty 35 - - 1
COM/Energy Research Park Realty 415 - - 3
COM/Energy Services Company - 3 639 - 219
COM/Energy Steam Company - - 105 855
Commonwealth Electric Company - 3 713 200 7 716
Commonwealth Energy System 13 360 290 - 128
Commonwealth Gas Company - 462 11 220 2 669
Darvel Realty Trust 7 480 - - 19
Hopkinton LNG Corp. 445 1 100 - 103
$21 785 $18 056 $21 785 $18 056
No. 3
Retained earnings $ 398
PROPERTY, PLANT AND EQUIPMENT:
Other $ 286
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes 112
To eliminate intercompany interest capitalized by Darvel
Realty Trust.
No. 4
CURRENT LIABILITIES:
Accrued income taxes $1 590
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes 7 394
CURRENT ASSETS:
Prepaid income taxes $1 590
DEFERRED CHARGES 7 394
To reclassify income taxes.
<PAGE 38>
EXHIBIT A-5
PAGE 5 of 5
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
ELIMINATIONS AND RECLASSIFICATIONS
TO
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1994
(Dollars in Thousands)
No. 5
CURRENT LIABILITIES:
Accrued interest $ 43
CURRENT ASSETS:
Other $ 43
To eliminate intercompany interest receivable and
payable on money pool transactions as follows:
Receivable Payable
Cambridge Electric Light Company $ - $ 2
Darvel Realty Trust 37 -
Commonwealth Gas Company - 41
Hopkinton LNG Corp. 3 -
COM/Energy Steam Company 1 -
COM/Energy Research Park Realty 2 -
$43 $43
<PAGE 39>
EXHIBIT C
PAGE 1 of 2
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
DESCRIPTION OF PROPERTIES - ITEM 2 OF FORM U-3A-2
DECEMBER 31, 1994
ELECTRIC Generating Stations
Rated KW
Company and Generating Station Locations Type Capacity (a)
Cambridge Electric Light Company
Kendall Square, Cambridge, Massachusetts Steam 67 450
Kendall Square, Cambridge, Massachusetts Jets 46 640
Blackstone Street, Cambridge, Massachusetts Steam 15 000
129 090
Canal Electric Company (d)
Sandwich, Massachusetts Steam 542 500
Sandwich, Massachusetts Steam 529 620(b)
1 072 120
Commonwealth Electric Company (c)
Oak Bluffs, Massachusetts Internal
Comb. 8 250
West Tisbury, Massachusetts Internal
Comb. 5 500
13 750
(a) Manufacturer's maximum name plate rating of generating units as
reported in Schedule 1, F.E.R.C. Power System Statement Form No. 12.
(b) Represents the entire capacity of Canal Unit No. 2 in which Canal
Electric Company and Montaup Electric Company each own an undivided
one-half joint-ownership interest. Canal is operator of the unit.
(c) Commonwealth Electric Company is a joint-owner, together with several
other New England utility companies, of the Wyman Unit #4 which is
located in Yarmouth, Maine. The Company has a 1.4325% interest in this
oil-fired 600,000 KW steam type unit, with an entitlement of
approximately 9 MW of power. The unit is 60% owned by Central Maine
Power Company.
(d) Canal Electric Company is a joint-owner, together with several other
New England utility companies, of the Seabrook 1 nuclear power plant
which is located in Seabrook, New Hampshire. The Company has a 3.52%
interest in this 1,150,000 KW unit, with an entitlement of
approximately 40 MW of power.
Notes: (1) Neither the System nor any of the "Other Subsidiaries" shown on
the cover of this report own any properties for the generation,
transmission or distribution of electricity or gas.
(2) None of the subsidiary companies owns any transmission lines or
pipelines which deliver or receive electric energy or gas at the
borders of The Commonwealth of Massachusetts with the exception of
a 20% undivided joint interest in a transmission line from the
Massachusetts border to a point in the Boston Edison Company
system in the vicinity of West Medway, Massachusetts and a 3.8%
interest in the Hydro-Quebec Phase II transmission facilities from
Monroe, New Hampshire to West Medway, Massachusetts.
<PAGE 40>
EXHIBIT C
PAGE 2 of 2
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
DESCRIPTION OF PROPERTIES - ITEM 2 OF FORM U-3A-2
DECEMBER 31, 1994
(3) In addition to the above generating stations, in order to provide
service to customers, each electric company maintains
substations, transmission and distribution lines. The gas
company maintains high and low pressure gas mains for
distribution of natural gas to customers. All of such property,
plant and equipment of each of the companies except as noted in
item (c) and (d) above is located within franchise areas located
in The Commonwealth of Massachusetts.
<PAGE 41>
EXHIBIT D
PAGE 1 of 2
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
SALES AND PURCHASES OF ELECTRICITY AND GAS - ITEM 3 OF FORM U-3A-2
FOR THE YEAR ENDED DECEMBER 31, 1994
Sales at Retail or Wholesale
Electricity Gas
(KWH) (MMBTU-1000 BTU)
Cambridge Electric Light Company 1 626 923 053
Canal Electric Company 4 337 684 913
Commonwealth Gas Company 48 187 804.2
Commonwealth Electric Company 4 492 859 452
Total 10 457 467 418 48 187 804.2
Elimination (detailed below) 2 032 472 672 833 545.3
Consolidated 8 424 994 746 47 354 258.9
Detail of Intercompany Sales
Commonwealth Electric Company Sales -
To: Canal Electric Company 14 329 500
Commonwealth Gas Company 1 270 834
15 599 834
Commonwealth Gas Company Sales -
To: Cambridge Electric Light Company 833 545.3
Canal Electric Company Sales -
To: Cambridge Electric Light Company 476 473 636
Commonwealth Electric Company 1 540 399 202
2 016 872 838
Total Elimination 2 032 472 672 833 545.3
Distributed at Retail Outside State
Electricity Gas
(KWH) (MMBTU-1000 BTU)
Cambridge Electric Light Company None None
Canal Electric Company None None
Commonwealth Gas Company None None
Commonwealth Electric Company None None
Sales at Wholesale Outside
State or at State Line
Electricity Gas
(KWH) (MMBTU-1000 BTU)
Cambridge Electric Light Company None None
Canal Electric Company None None
Commonwealth Gas Company None None
Commonwealth Electric Company None None
<PAGE 42>
EXHIBIT D
PAGE 2 of 2
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
SALES AND PURCHASES OF ELECTRICITY AND GAS - ITEM 3 OF FORM U-3A-2
FOR THE YEAR ENDED DECEMBER 31, 1994
Purchases Outside State
or at State Line
Electricity Gas
(KWH) (MMBTU-1000 BTU)
Cambridge Electric Light Company 506 030 278 None
Canal Electric Company 477 443 564 None
Commonwealth Gas Company None None
Commonwealth Electric Company 225 000 None
Total 983 698 842
Elimination -
Consolidated 983 698 842 (A)
(A) Excluding power interchanged in the New England Power Pool (Pool) of
(453,497,000) KWH. Power is supplied to the Pool by companies in the six-
state New England region. No determination is made as to the state of
origin of the power which is distributed.
<TABLE> <S> <C>
<ARTICLE> OPUR3
<LEGEND>
This schedule contains summary financial information extracted from the balance sheet and
statement of income contained in Form U-3A-2 of Commonwealth Energy System for the fiscal year
ended December 31, 1994 and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000071304
<NAME> COMMONWEALTH ENERGY SYSTEM
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 1,344,716
<TOTAL-OPERATING-REVENUES> 978,562
<NET-INCOME> 48,968
</TABLE>
