<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, 1995
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>
<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>
<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 1st day of March,
1996.
COMMONWEALTH ENERGY SYSTEM
By JAMES D. RAPPOLI
James D. Rappoli,
Financial Vice
President and
Treasurer
SEAL
Attest
MICHAEL P. SULLIVAN
Michael P. Sullivan,
Vice President,
Secretary and
General Counsel
Name, title and address of officer to whom notices and
correspondence concerning this statement should be addressed:
James D. Rappoli Financial Vice President
(Name) and Treasurer
(Title)
One Main Street, Cambridge, Massachusetts 02142-9150
(Address)
<PAGE>
<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, 1995 Pages 1 - 2
A - 2 Eliminations and Reclassifications to
Consolidating Statement of Income for
the Twelve Months Ended December 31, 1995
Summary Pages 1 - 3
Detail Pages 4 - 8
A - 3 Consolidating Statement of Retained
Earnings for the Twelve Months Ended
December 31, 1995 Pages 1 - 2
A - 4 Consolidating Balance Sheet -
December 31, 1995
Assets Pages 1 - 2
Capitalization and Liabilities Pages 3 - 4
Note to Consolidating Balance Sheet Page 5
A - 5 Eliminations and Reclassifications to
Consolidating Balance Sheet -
December 31, 1995
Summary Pages 1 - 2
Detail Pages 3 - 5
<PAGE>
<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, 1995
(Dollars in Thousands)
Eliminations
and Reclass-
Consolidated ifications Total
OPERATING REVENUES:
Electric $607 047 $ 97 866 $ 704 933
Gas 306 953 1 969 308 922
Steam 15 402 - 15 402
Other 1 953 45 547 47 500
931 355 145 402 1 076 757
OPERATING EXPENSES:
Fuel used in electric and steam
production, principally oil 57 820 1 445 59 265
Electricity purchased for resale 274 795 90 448 365 243
Cost of gas sold 158 835 10 277 169 112
Other operation 206 280 43 306 249 586
Maintenance 38 414 - 38 414
Depreciation 48 170 - 48 170
Taxes -
Local property 17 573 - 17 573
Federal and state income -
Current 20 025 - 20 025
Deferred 5 950 - 5 950
Investment tax credits, net (1 401) - (1 401)
Payroll and other 8 284 - 8 284
834 745 145 476 980 221
OPERATING INCOME (LOSS) 96 610 (74) 96 536
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries - 53 784 53 784
Interest - subsidiaries - 1 876 1 876
Other, net (606) 1 661 1 055
(606) 57 321 56 715
TOTAL INCOME 96 004 57 247 153 251
INTEREST CHARGES:
Long-term debt 38 581 - 38 581
Intercompany advances - 3 182 3 182
Other interest charges 6 884 281 7 165
Allowance for borrowed funds used
during construction (857) - (857)
44 608 3 463 48 071
NET INCOME (LOSS) $ 51 396 $ 53 784 $ 105 180
<PAGE>
<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, 1995
(Dollars in Thousands)
Cambridge
Commonwealth Electric
Energy Subsidiaries Light
System Combined Company
OPERATING REVENUES:
Electric $ - $ 704 933 $123 354
Gas - 308 922 -
Steam - 15 402 -
Other - 47 500 -
- 1 076 757 123 354
OPERATING EXPENSES:
Fuel used in electric and steam
production, principally oil - 59 265 2 895
Electricity purchased for resale - 365 243 69 415
Cost of gas sold - 169 112 -
Other operation 1 173 248 413 27 478
Maintenance - 38 414 3 404
Depreciation - 48 170 4 127
Taxes -
Local property - 17 573 3 017
Federal and state income -
Current (1 131) 21 156 1 752
Deferred (149) 6 099 1 067
Investment tax credits, net - (1 401) (94)
Payroll and other (19) 8 303 835
(126) 980 347 113 896
OPERATING INCOME (LOSS) 126 96 410 9 458
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries 53 784 - -
Interest - subsidiaries 1 876 - -
Other, net 13 1 042 258
55 673 1 042 258
TOTAL INCOME 55 799 97 452 9 716
INTEREST CHARGES:
Long-term debt 3 700 34 881 3 776
Intercompany advances - 3 182 286
Other interest charges 703 6 462 352
Allowance for borrowed funds used
during construction - (857) (136)
4 403 43 668 4 278
NET INCOME (LOSS) $ 51 396 $ 53 784 $ 5 438
<PAGE>
<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, 1995
(Dollars in Thousands)
COM/ COM/ COM/
Canal Energy Energy Energy
Electric Acushnet Cambridge Freetown
Company Realty Realty Realty
OPERATING REVENUES:
Electric $146 954 $ - $ - $ -
Gas - - - -
Steam - - - -
Other - 157 - -
146 954 157 - -
OPERATING EXPENSES:
Fuel used in electric and steam
production, principally oil 48 707 - - -
Electricity purchased for resale 14 999 - - -
Cost of gas sold - - - -
Other operation 26 576 27 14 398
Maintenance 12 456 - - -
Depreciation 16 473 - - -
Taxes -
Local property 2 777 26 2 80
Federal and state income -
Current 4 486 40 (3) (402)
Deferred (3 239) 3 (2) 214
Investment tax credits, net (638) - - -
Payroll and other 733 - - -
123 330 96 11 290
OPERATING INCOME (LOSS) 23 624 61 (11) (290)
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries - - - -
Interest - subsidiaries - - - -
Other, net 261 6 2 -
261 6 2 -
TOTAL INCOME 23 885 67 (9) (290)
INTEREST CHARGES:
Long-term debt 8 229 - - -
Intercompany advances 1 210 - - 66
Other interest charges 668 - - -
Allowance for borrowed funds used
during construction (354) - - -
9 753 - - 66
NET INCOME (LOSS) $ 14 132 $ 67 $ (9) $ (356)
<PAGE>
<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, 1995
(Dollars in Thousands)
COM/ COM/ Common-
COM/Energy Energy Energy wealth
Research Services Steam Electric
Park Realty Company Company Company
OPERATING REVENUES:
Electric $ - $ - $ - $434 625
Gas - - - -
Steam - - 15 402 -
Other 892 35 559 - -
892 35 559 15 402 434 625
OPERATING EXPENSES:
Fuel used in electric and steam
production, principally oil - - 7 362 301
Electricity purchased for resale - - - 280 829
Cost of gas sold - - - -
Other operation 314 34 471 3 812 74 194
Maintenance - - 408 10 569
Depreciation - - 282 16 377
Taxes -
Local property 222 - 78 5 137
Federal and state income -
Current 124 295 1 321 (2 075)
Deferred 30 (365) 20 13 551
Investment tax credits, net - - (4) (435)
Payroll and other - 1 104 42 2 750
690 35 505 13 321 401 198
OPERATING INCOME (LOSS) 202 54 2 081 33 427
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries - - - -
Interest - subsidiaries - - - -
Other, net 37 - 28 (1 323)
37 - 28 (1 323)
TOTAL INCOME 239 54 2 109 32 104
INTEREST CHARGES:
Long-term debt - - - 14 081
Intercompany advances - - 11 1 495
Other interest charges - 5 5 1 671
Allowance for borrowed funds used
during construction - - - (312)
- 5 16 16 935
NET INCOME (LOSS) $ 239 $ 49 $ 2 093 $ 15 169
<PAGE>
<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, 1995
(Dollars in Thousands)
Common-
wealth Darvel Hopkinton
Gas Realty LNG
Company Trust Corp.
OPERATING REVENUES:
Electric $ - $ - $ -
Gas 308 922 - -
Steam - - -
Other - 904 9 988
308 922 904 9 988
OPERATING EXPENSES:
Fuel used in electric and steam
production, principally oil - - -
Electricity purchased for resale - - -
Cost of gas sold 169 112 - -
Other operation 73 350 913 6 866
Maintenance 11 577 - -
Depreciation 9 656 - 1 255
Taxes -
Local property 5 798 - 436
Federal and state income -
Current 13 898 1 293 427
Deferred (4 026) (1 123) (31)
Investment tax credits, net (203) - (27)
Payroll and other 2 818 3 18
281 980 1 086 8 944
OPERATING INCOME (LOSS) 26 942 (182) 1 044
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries - - -
Interest - subsidiaries - - -
Other, net 1 233 407 133
1 233 407 133
TOTAL INCOME 28 175 225 1 177
INTEREST CHARGES:
Long-term debt 8 174 - 621
Intercompany advances 106 - 8
Other interest charges 3 721 40 -
Allowance for borrowed funds used
during construction (55) - -
11 946 40 629
NET INCOME (LOSS) $ 16 229 $ 185 $ 548
<PAGE>
<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, 1995
(Dollars in Thousands)
ENTRY NUMBER (See Pages 4-8 for detail)
TOTAL 1 2 3 4 5
STATEMENT OF INCOME CAPTION
OPERATING REVENUES:
Electric $ 97 886 $41 664 $18 694 $ 2 030 $33 878 $ -
Gas 1 969 - - - - 1 969
Other 45 547 - - - - -
OPERATING EXPENSES:
Fuel used in electric
and steam production 1 445 - - - - 1 680
Electricity purchased
for resale 90 448 39 617 15 191 2 030 33 610 -
Cost of gas sold 10 277 - - - - 289
Other operation 43 306 2 047 3 503 - 268 -
OTHER INCOME:
Equity in earnings of
subsidiaries 53 784 - - - - -
Interest - subsidiaries 1 876 - - - - -
Other, net 1 661 - - - - -
INTEREST CHARGES:
Intercompany advances 3 182 - - - - -
Other interest charges 281 - - - - -
NET INCOME $ 53 784
<PAGE>
<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, 1995
(Dollars in Thousands)
ENTRY NUMBER (See Pages 4-8 for detail)
6 7 8 9 10 11
STATEMENT OF INCOME CAPTION
OPERATING REVENUES:
Electric $1 561 $ - $ - $ - $ - $ 59
Gas - - - - - -
Other - 35 559 - - - -
OPERATING EXPENSES:
Fuel used in electric
and steam production - - - - - -
Electricity purchased
for resale - - - - - -
Cost of gas sold - - - - - -
Other operation 1 561 35 559 - - - 59
OTHER INCOME:
Equity in earnings of
subsidiaries - - 53 784 - - -
Interest - subsidiaries - - - 1 876 - -
Other, net - - - - 1 306 -
INTEREST CHARGES:
Intercompany advances - - - 1 876 1 306 -
Other interest charges - - - - - -
NET INCOME $53 784
<PAGE>
<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, 1995
(Dollars in Thousands)
ENTRY NUMBER (See Pages 4-8 for detail)
12 13 14 15
STATEMENT OF INCOME CAPTION
OPERATING REVENUES:
Electric $ - $ - $ - $ -
Gas - - - -
Other - - - 9 988
OPERATING EXPENSES:
Fuel used in electric
and steam production (235) - - -
Electricity purchased
for resale - - - -
Cost of gas sold - - - 9 988
Other operation 235 74 - -
OTHER INCOME:
Equity in earnings of
subsidiaries - - - -
Interest - subsidiaries - - - -
Other, net - 74 281 -
INTEREST CHARGES:
Intercompany advances - - - -
Other interest charges - - 281 -
NET INCOME
<PAGE>
<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, 1995
(Dollars in Thousands)
No. 1
OPERATING REVENUES:
Electric $41 664
OPERATING EXPENSES:
Electricity purchased for resale $39 617
Other operation 2 047
To eliminate intercompany sales of electricity as follows:
OPERATING EXPENSES
OPERATING Electricity
REVENUES Purchased Other
Electric for Resale Operation
Canal Electric Company $39 617 $ - $ -
Cambridge Electric Light Company - 10 148 -
Commonwealth Electric Company - 29 469 -
Commonwealth Electric Company 2 047 - -
Canal Electric Company - - 1 907
Commonwealth Gas Company - - 140
$41 664 $39 617 $ 2 047
No. 2
OPERATING REVENUES:
Electric $18 694
OPERATING EXPENSES:
Electricity purchased for resale $15 191
Other operation 3 503
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 $ 2 030
OPERATING EXPENSES:
Electricity purchased for resale $ 2 030
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>
<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, 1995
(Dollars in Thousands)
No. 4
OPERATING REVENUES:
Electric $33 878
OPERATING EXPENSES:
Electricity purchased for resale $33 610
Other operation 268
To eliminate intercompany sales of electricity, including transmission costs,
by Canal Electric Company to Commonwealth Electric Company
($26,905,000) and Cambridge Electric Light Company ($6,973,000)
from the Seabrook nuclear power plant.
No. 5
OPERATING REVENUES:
Gas $ 1 969
OPERATING EXPENSES:
Fuel used in electric and steam production $ 1 680
Cost of gas sold 289
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 $ 1 561
OPERATING EXPENSES:
Other operation $ 1 561
To eliminate intercompany rents billed by Commonwealth Electric
Company to Cambridge Electric Light Company and Canal
Electric Company.
No. 7
OPERATING REVENUES:
Other $35 559
OPERATING EXPENSES:
Other operation $35 559
To eliminate intercompany billing by COM/Energy Services Company
to the other subsidiaries.
<PAGE>
<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, 1995
(Dollars in Thousands)
No. 8
OTHER INCOME:
Equity in earnings of subsidiaries $53 784
RETAINED EARNINGS $53 784
To eliminate Commonwealth Energy System's equity in 1995
earnings (losses) of subsidiaries as follows:
Cambridge Electric Light Company $ 5 438
Canal Electric Company 14 132
COM/Energy Acushnet Realty 67
COM/Energy Cambridge Realty (9)
COM/Energy Freetown Realty (356)
COM/Energy Research Park Realty 239
COM/Energy Services Company 49
COM/Energy Steam Company 2 093
Commonwealth Electric Company 15 169
Commonwealth Gas Company 16 229
Darvel Realty Trust 185
Hopkinton LNG Corp. 548
$53 784
No. 9
OTHER INCOME:
Interest - subsidiaries $ 1 876
INTEREST CHARGES:
Intercompany advances $ 1 876
To eliminate interest income of Commonwealth Energy System
from subsidiaries as follows:
Cambridge Electric Light Company $ 201
Canal Electric Company 616
COM/Energy Freetown Realty 66
Commonwealth Electric Company 915
Commonwealth Gas Company 59
Hopkinton LNG Corp. 8
COM/Energy Steam Company 11
$1 876
<PAGE>
<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, 1995
(Dollars in Thousands)
No. 10
OTHER INCOME:
Other, net $ 1 306
INTEREST CHARGES:
Intercompany advances $ 1 306
To eliminate intercompany interest income and expense as follows:
Income Expense
Cambridge Electric Light Company $ - $ 85
Canal Electric Company - 594
COM/Energy Acushnet Realty 5 -
COM/Energy Cambridge Realty 2 -
Darvel Realty Trust 407 -
COM/Energy Research Park Realty 28 -
COM/Energy Steam Company 28 -
Hopkinton LNG Corp. 44 -
Commonwealth Electric Company - 580
Commonwealth Gas Company 792 47
$ 1 306 $ 1 306
No. 11
OPERATING REVENUES:
Electric $ 59
OPERATING EXPENSES:
Other operation $ 59
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 $ 235
OPERATING EXPENSES:
Other operation $ 235
To eliminate intercompany billing for operating expenses from
Cambridge Electric Light Company to COM/Energy Steam Company.
<PAGE>
<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, 1995
(Dollars in Thousands)
No. 13
OTHER INCOME:
Other, net $ 74
OPERATING EXPENSES:
Other operation $ 74
To eliminate intercompany rent billed by Cambridge Electric Light
Company to COM/Energy Steam Company.
No. 14
INTEREST INCOME:
Other, net $ 281
INTEREST CHARGES:
Other interest charges $ 281
To reclassify interest income and expense related to contested income tax
issues.
No. 15
OPERATING REVENUES:
Other $9 988
OPERATING EXPENSES:
Cost of Gas Sold $9 988
To eliminate intercompany billing by Hopkinton LNG Corp. to Commonwealth
Gas Company.
<PAGE>
<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, 1995
(Dollars in Thousands)
Eliminations
and Reclass-
Consolidated ifications Total
Balance at December 31, 1994 $217 726 $ 63 133 $280 859
Add-
Net income for the year 51 396 53 784 105 180
269 122 116 917 386 039
Deduct-
Cash dividends-
System-
Common shares 32 032 - 32 032
Preferred shares 1 110 - 1 110
Subsidiaries-
Common stock - 44 797 44 797
33 142 44 797 77 939
Balance at December 31, 1995 $235 980 $ 72 120 $308 100
<PAGE>
<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, 1995
(Dollars in Thousands)
Cambridge
Commonwealth Electric
Energy Subsidiaries Light
System Combined Company
Balance at December 31, 1994 $217 726 $ 63 133 $ 7 166
Add-
Net income for the year 51 396 53 784 5 438
269 122 116 917 12 604
Deduct-
Cash dividends-
System-
Common shares 32 032 - -
Preferred shares 1 110 - -
Subsidiaries-
Common stock - 44 797 5 043
33 142 44 797 5 043
Balance at December 31, 1995 $235 980 $ 72 120 $ 7 561
<PAGE>
<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, 1995
(Dollars in Thousands)
Canal COM/Energy COM/Energy COM/Energy
Electric Acushnet Cambridge Freetown
Company Realty Realty Realty
Balance at December 31, 1994 $ 51 647 $ 199 $ 32 $(20 167)
Add-
Net income for the year 14 132 67 (9) (356)
65 779 266 23 (20 523)
Deduct-
Cash dividends-
System-
Common shares - - - -
Preferred shares - - - -
Subsidiaries-
Common stock 13 709 16 - -
13 709 16 - -
Balance at December 31, 1995 $ 52 070 $ 250 $ 23 $(20 523)
<PAGE>
<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, 1995
(Dollars in Thousands)
Common-
COM/Energy COM/Energy COM/Energy wealth
Research Services Steam Electric
Park Realty Company Company Company
Balance at December 31, 1994 $ 536 $ 12 $ 1 560 $15 350
Add-
Net income for the year 239 49 2 093 15 169
775 61 3 653 30 519
Deduct-
Cash dividends-
System-
Common shares - - - -
Preferred shares - - - -
Subsidiaries-
Common stock 386 49 2 664 9 811
386 49 2 664 9 811
Balance at December 31, 1995 $ 389 $ 12 $ 989 $20 708
<PAGE>
<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, 1995
(Dollars in Thousands)
Common-
wealth Darvel Hopkinton
Gas Realty LNG
Company Trust Corp.
Balance at December 31, 1994 $ 6 837 $ (432) $ 393
Add-
Net income for the year 16 229 185 548
23 066 (247) 941
Deduct-
Cash dividends-
System-
Common shares - - -
Preferred shares - - -
Subsidiaries-
Common stock 12 571 - 548
12 571 - 548
Balance at December 31, 1995 $ 10 495 $ (247) $ 393
<PAGE>
<PAGE 23>
EXHIBIT A-4
PAGE 1 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1995
(Dollars in Thousands)
Eliminations
and Reclass-
Consolidated ifications Total
PROPERTY, PLANT AND EQUIPMENT,
at original cost:
Electric $1 114 351 $ - $1 114 351
Gas 347 728 - 347 728
Other 63 821 286 64 107
Leased property, net 14 931 - 14 931
1 540 831 286 1 541 117
Less: Accumulated depreciation
and amortization 497 627 - 497 627
Net Property, Plant and Equipment 1 043 204 286 1 043 490
INVESTMENTS:
Equity in common stock and earnings
of subsidiary companies - 436 891 436 891
Advances to associate companies - 13 890 13 890
Equity in corporate joint ventures-
Nuclear electric power companies
(2.5% to 4.5%) 9 814 - 9 814
Other, at cost 3 400 - 3 400
13 214 450 781 436 995
CURRENT ASSETS:
Cash 4 319 - 4 319
Accounts receivable:
Affiliated companies - 19 488 19 488
Other 113 418 - 113 418
Reserve for uncollectible accounts (8 041) - (8 041)
Unbilled revenues 31 642 - 31 642
Inventories, at average cost-
Materials and supplies 6 516 - 6 516
Natural gas 17 339 - 17 339
Electric production fuel oil 1 683 - 1 683
Prepaid property taxes 9 044 - 9 044
Prepaid income taxes - 1 527 1 527
Other 6 799 35 6 834
Total Current Assets 182 719 21 050 203 769
DEFERRED CHARGES 145 464 7 537 153 001
TOTAL $1 384 601 $ 479 654 $1 864 255
<PAGE>
<PAGE 24>
EXHIBIT A-4
PAGE 2 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1995
(Dollars in Thousands)
Cambridge
Commonwealth Electric
Energy Subsidiaries Light
System Combined Company
PROPERTY, PLANT AND EQUIPMENT,
at original cost:
Electric $ - $1 114 351 $ 151 141
Gas - 347 728 -
Other - 64 107 7 009
Leased property, net - 14 931 -
- 1 541 117 158 150
Less: Accumulated depreciation
and amortization - 497 627 58 839
Net Property, Plant and Equipment - 1 043 490 99 311
INVESTMENTS:
Equity in common stock and earnings
of subsidiary companies 436 891 - -
Advances to associate companies 6 610 7 280 -
Equity in corporate joint ventures-
Nuclear electric power companies
(2.5% to 4.5%) - 9 814 9 224
Other, at cost - 3 400 5
443 501 20 494 9 229
CURRENT ASSETS:
Cash 115 4 204 239
Accounts receivable:
Affiliated companies 61 19 427 2 140
Other 3 113 415 11 024
Reserve for uncollectible accounts - (8 041) (490)
Unbilled revenues - 31 642 1 769
Inventories, at average cost-
Materials and supplies - 6 516 511
Natural gas - 17 339 -
Electric production fuel oil - 1 683 796
Prepaid property taxes - 9 044 1 690
Prepaid income taxes 510 1 017 43
Other 30 6 804 829
Total Current Assets 719 203 050 18 551
DEFERRED CHARGES 322 152 679 9 951
TOTAL $ 444 542 $1 419 713 $ 137 042
<PAGE>
<PAGE 25>
EXHIBIT A-4
PAGE 3 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1995
(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 $442 403 $ - $ - $ -
Gas - - - -
Other 9 423 3 2 932
Leased property, net 13 128 - - -
455 540 423 3 2 932
Less: Accumulated depreciation
and amortization 163 929 - - -
Net Property, Plant and Equipment 291 611 423 3 2 932
INVESTMENTS:
Equity in common stock and earnings
of subsidiary companies - - - -
Advances to associate companies - 120 35 -
Equity in corporate joint ventures-
Nuclear electric power companies
(2.5% to 4.5%) - - - -
Other, at cost 3 372 - - -
3 372 120 35 -
CURRENT ASSETS:
Cash 12 7 7 4
Accounts receivable:
Affiliated companies 9 271 - - -
Other 9 531 26 - -
Reserve for uncollectible accounts - - - -
Unbilled revenues 438 - - -
Inventories, at average cost-
Materials and supplies 1 375 - - -
Natural gas - - - -
Electric production fuel oil 762 - - -
Prepaid property taxes 874 13 2 68
Prepaid income taxes - - - 283
Other 1 622 1 2 12
Total Current Assets 23 885 47 11 367
DEFERRED CHARGES 30 592 23 2 3 668
TOTAL $349 460 $ 613 $ 51 $ 6 967
<PAGE>
<PAGE 26>
EXHIBIT A-4
PAGE 4 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1995
(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 $ - $ - $ - $520 807
Gas - - - -
Other 384 251 7 546 1 819
Leased property, net - 1 803 - -
384 2 054 7 546 522 626
Less: Accumulated depreciation
and amortization 125 251 4 037 154 170
Net Property, Plant and Equipment 259 1 803 3 509 368 456
INVESTMENTS:
Equity in common stock and earnings
of subsidiary companies - - - -
Advances to associate companies 495 - - -
Equity in corporate joint ventures-
Nuclear electric power companies
(2.5% to 4.5%) - - - 590
Other, at cost - - - 14
495 - - 604
CURRENT ASSETS:
Cash 18 126 5 1 430
Accounts receivable:
Affiliated companies - 4 085 - 2 570
Other 20 228 2 747 44 330
Reserve for uncollectible accounts - - - (2 379)
Unbilled revenues - - 791 5 795
Inventories, at average cost-
Materials and supplies - - 6 3 338
Natural gas - - - -
Electric production fuel oil - - - 125
Prepaid property taxes 111 - 39 2 843
Prepaid income taxes 5 - - -
Other 2 873 48 1 799
Total Current Assets 156 5 312 3 636 59 851
DEFERRED CHARGES 381 5 676 73 77 916
TOTAL $ 1 291 $ 12 791 $ 7 218 $506 827
<PAGE>
<PAGE 27>
EXHIBIT A-4
PAGE 5 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1995
(Dollars in Thousands)
Common-
wealth Darvel Hopkinton
Gas Realty LNG
Company Trust Corp.
PROPERTY, PLANT AND EQUIPMENT,
at original cost:
Electric $ - $ - $ -
Gas 347 728 - -
Other 1 294 1 777 40 660
Leased property, net - - -
349 022 1 777 40 660
Less: Accumulated depreciation
and amortization 92 881 - 23 395
Net Property, Plant and Equipment 256 141 1 777 17 265
INVESTMENTS:
Equity in common stock and earnings
of subsidiary companies - - -
Advances to associate companies - 6 630 -
Equity in corporate joint ventures-
Nuclear electric power companies
(2.5% to 4.5%) - - -
Other, at cost 9 - -
9 6 630 -
CURRENT ASSETS:
Cash 2 114 6 236
Accounts receivable:
Affiliated companies 188 - 1 173
Other 43 008 2 500 1
Reserve for uncollectible accounts (2 691) (2 481) -
Unbilled revenues 22 849 - -
Inventories, at average cost-
Materials and supplies 1 286 - -
Natural gas 17 339 - -
Electric production fuel oil - - -
Prepaid property taxes 3 094 - 310
Prepaid income taxes 384 302 -
Other 1 138 32 446
Total Current Assets 88 709 359 2 166
DEFERRED CHARGES 24 256 107 34
TOTAL $369 115 $ 8 873 $ 19 465
<PAGE>
<PAGE 28>
EXHIBIT A-4
PAGE 6 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - CAPITALIZATION AND LIABILITIES
DECEMBER 31, 1995
(Dollars in Thousands)
Eliminations
and Reclass-
Consolidated ifications Total
CAPITALIZATION:
Common Shares - Commonwealth Energy
System $4 par value, 10,764,134
shares outstanding (238,237 shares
issued during 1995) $ 43 056 $ - $ 43 056
Subsidiaries - 200 594 200 594
Amounts paid in excess of par value 111 749 164 575 276 324
Retained earnings 235 980 72 120 308 100
Total Common Share Equity 390 785 437 289 828 074
Redeemable Preferred Shares, $100 par
value, less current sinking fund
requirements:
Series A, 4.80%, 27,600 shares
authorized and outstanding 2 640 - 2 640
Series B, 8.10%, 41,600 shares
authorized and outstanding 4 000 - 4 000
Series C, 7.75%, 77,400 shares
authorized and outstanding 7 200 - 7 200
Long-Term Debt, including premiums,
less current sinking fund require-
ments and maturities 377 181 - 377 181
Total Capitalization 781 806 437 289 1 219 095
Capital Lease Obligations-Non Current 13 291 - 13 291
CURRENT LIABILITIES:
Interim Financing -
Notes payable to banks 55 600 - 55 600
Advances from affiliates - 13 890 13 890
Maturing long-term debt 33 230 - 33 230
Total Interim Financing 88 830 13 890 102 720
Other Current Liabilities -
Current sinking fund requirements 9 103 - 9 103
Accounts payable -
Affiliates - 19 488 19 488
Other 134 908 - 134 908
Dividends declared 8 073 - 8 073
Customers' deposits 3 727 - 3 727
Accrued taxes -
Income 22 007 1 527 23 534
Local property and other 9 580 - 9 580
Accrued interest 8 389 35 8 424
Capital lease obligations 1 640 - 1 640
Other 13 578 - 13 578
Total Other Current Liabilities 211 005 21 050 232 055
Total Current Liabilities 299 835 34 940 334 775
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes 170 182 7 425 177 607
Unamortized investment tax credits 27 903 - 27 903
Other 91 584 - 91 584
Total Deferred Credits and Reserves 289 669 7 425 297 094
TOTAL $1 384 601 $ 479 654 $1 864 255
<PAGE>
<PAGE 29>
EXHIBIT A-4
PAGE 7 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - CAPITALIZATION AND LIABILITIES
DECEMBER 31, 1995
(Dollars in Thousands)
Cambridge
Commonwealth Electric
Energy Subsidiaries Light
System Combined Company
CAPITALIZATION:
Common Shares - Commonwealth Energy
System $4 par value, 10,764,134
shares outstanding (238,237 shares
issued during 1995) $ 43 056 $ - $ -
Subsidiaries - 200 594 8 665
Amounts paid in excess of par value 111 749 164 575 27 953
Retained earnings 235 980 72 120 7 561
Total Common Share Equity 390 785 437 289 44 179
Redeemable Preferred Shares, $100 par
value, less current sinking fund
requirements:
Series A, 4.80%, 27,600 shares
authorized and outstanding 2 640 - -
Series B, 8.10%, 41,600 shares
authorized and outstanding 4 000 - -
Series C, 7.75%, 77,400 shares
authorized and outstanding 7 200 - -
Long-Term Debt, including premiums,
less current sinking fund require-
ments and maturities 30 000 347 181 21 865
Total Capitalization 434 625 784 470 66 044
Capital Lease Obligations-Non Current - 13 291 -
CURRENT LIABILITIES:
Interim Financing -
Notes payable to banks - 55 600 2 675
Advances from affiliates - 13 890 2 425
Maturing long-term debt - 33 230 20 000
Total Interim Financing - 102 720 25 100
Other Current Liabilities -
Current sinking fund requirements 820 8 283 160
Accounts payable -
Affiliates 52 19 436 3 787
Other 324 134 584 8 870
Dividends declared 8 073 - -
Customers' deposits - 3 727 420
Accrued taxes -
Income - 23 534 731
Local property and other - 9 580 1 690
Accrued interest 26 8 398 973
Capital lease obligations - 1 640 -
Other 18 13 560 852
Total Other Current Liabilities 9 313 222 742 17 483
Total Current Liabilities 9 313 325 462 42 583
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes - 177 607 13 882
Unamortized investment tax credits - 27 903 1 941
Other 604 90 980 12 592
Total Deferred Credits and Reserves 604 296 490 28 415
TOTAL $ 444 542 $1 419 713 $ 137 042
<PAGE>
<PAGE 30>
EXHIBIT A-4
PAGE 8 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - CAPITALIZATION AND LIABILITIES
DECEMBER 31, 1995
(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, 10,764,134
shares outstanding (238,237 shares
issued during 1995) $ - $ - $ - $ -
Subsidiaries 38 080 325 25 26 000
Amounts paid in excess of par value 8 321 - - -
Retained earnings 52 070 250 23 (20 523)
Total Common Share Equity 98 471 575 48 5 477
Redeemable Preferred Shares, $100 par
value, less current sinking fund
requirements:
Series A, 4.80%, 27,600 shares
authorized and outstanding - - - -
Series B, 8.10%, 41,600 shares
authorized and outstanding - - - -
Series C, 7.75%, 77,400 shares
authorized and outstanding - - - -
Long-Term Debt, including premiums,
less current sinking fund require-
ments and maturities 83 941 - - -
Total Capitalization 182 412 575 48 5 477
Capital Lease Obligations-Non Current 12 547 - - -
CURRENT LIABILITIES:
Interim Financing -
Notes payable to banks 23 425 - - -
Advances from affiliates 5 865 - - 1 085
Maturing long-term debt 3 230 - - -
Total Interim Financing 32 520 - - 1 085
Other Current Liabilities -
Current sinking fund requirements 920 - - -
Accounts payable -
Affiliates 2 049 2 1 20
Other 19 757 - - -
Dividends declared - - - -
Customers' deposits - - - -
Accrued taxes -
Income 3 159 18 - -
Local property and other 855 13 2 68
Accrued interest 1 516 - - -
Capital lease obligations 581 - - -
Other 2 092 - - 317
Total Other Current Liabilities 30 929 33 3 405
Total Current Liabilities 63 449 33 3 1 490
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes 72 914 5 - -
Unamortized investment tax credits 12 020 - - -
Other 6 118 - - -
Total Deferred Credits and Reserves 91 052 5 - -
TOTAL $349 460 $ 613 $ 51 $ 6 967
<PAGE>
<PAGE 31>
EXHIBIT A-4
PAGE 9 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - CAPITALIZATION AND LIABILITIES
DECEMBER 31, 1995
(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, 10,764,134
shares outstanding (238,237 shares
issued during 1995) $ - $ - $ - $ -
Subsidiaries 350 325 2 550 51 099
Amounts paid in excess of par value - - - 97 112
Retained earnings 389 12 989 20 708
Total Common Share Equity 739 337 3 539 168 919
Redeemable Preferred Shares, $100 par
value, less current sinking fund
requirements:
Series A, 4.80%, 27,600 shares
authorized and outstanding - - - -
Series B, 8.10%, 41,600 shares
authorized and outstanding - - - -
Series C, 7.75%, 77,400 shares
authorized and outstanding - - - -
Long-Term Debt, including premiums,
less current sinking fund require-
ments and maturities - - - 154 275
Total Capitalization 739 337 3 539 323 194
Capital Lease Obligations-Non Current - 744 - -
CURRENT LIABILITIES:
Interim Financing -
Notes payable to banks - - - 17 300
Advances from affiliates - - 500 1 545
Maturing long-term debt - - - -
Total Interim Financing - - 500 18 845
Other Current Liabilities -
Current sinking fund requirements - - - 3 553
Accounts payable -
Affiliates 4 11 2 175 8 987
Other - 1 653 102 32 699
Dividends declared - - - -
Customers' deposits - - - 1 953
Accrued taxes -
Income 16 170 585 18 721
Local property and other 111 3 39 3 068
Accrued interest - - - 3 946
Capital lease obligations - 1 059 - -
Other - 488 21 5 843
Total Other Current Liabilities 131 3 384 2 922 78 770
Total Current Liabilities 131 3 384 3 422 97 615
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes 91 - 64 44 211
Unamortized investment tax credits - - 39 7 559
Other 330 8 326 154 34 248
Total Deferred Credits and Reserves 421 8 326 257 86 018
TOTAL $ 1 291 $ 12 791 $ 7 218 $506 827
<PAGE>
<PAGE 32>
EXHIBIT A-4
PAGE 10 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - CAPITALIZATION AND LIABILITIES
DECEMBER 31, 1995
(Dollars in Thousands)
Common-
wealth Darvel Hopkinton
Gas Realty LNG
Company Trust Corp.
CAPITALIZATION:
Common Shares - Commonwealth Energy
System $4 par value, 10,764,134
shares outstanding (238,237 shares
issued during 1995) $ - $ - $ -
Subsidiaries 71 425 1 700 50
Amounts paid in excess of par value 27 739 - 3 450
Retained earnings 10 495 (247) 393
Total Common Share Equity 109 659 1 453 3 893
Redeemable Preferred Shares, $100 par
value, less current sinking fund
requirements:
Series A, 4.80%, 27,600 shares
authorized and outstanding - - -
Series B, 8.10%, 41,600 shares
authorized and outstanding - - -
Series C, 7.75%, 77,400 shares
authorized and outstanding - - -
Long-Term Debt, including premiums,
less current sinking fund require-
ments and maturities 78 100 - 9 000
Total Capitalization 187 759 1 453 12 893
Capital Lease Obligations-Non Current - - -
CURRENT LIABILITIES:
Interim Financing -
Notes payable to banks 12 200 - -
Advances from affiliates 1 850 - 620
Maturing long-term debt 10 000 - -
Total Interim Financing 24 050 - 620
Other Current Liabilities -
Current sinking fund requirements 3 650 - -
Accounts payable -
Affiliates 2 221 22 157
Other 70 513 - 990
Dividends declared - - -
Customers' deposits 1 354 - -
Accrued taxes -
Income - 11 123
Local property and other 3 435 - 296
Accrued interest 1 938 - 25
Capital lease obligations - - -
Other 3 535 11 401
Total Other Current Liabilities 86 646 44 1 992
Total Current Liabilities 110 696 44 2 612
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes 35 586 7 376 3 478
Unamortized investment tax credits 5 862 - 482
Other 29 212 - -
Total Deferred Credits and Reserves 70 660 7 376 3 960
TOTAL $369 115 $ 8 873 $ 19 465
<PAGE>
<PAGE 33>
EXHIBIT A-4
PAGE 5 of 5
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
NOTE TO CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1995
(Dollars in Thousands)
Consolidated long-term debt, including Less Current
premiums, at December 31, 1995 is Sinking Fund
summarized as follows: Requirements
Amount and Current
Bonds, Mortgages and Similar Debt - Outstanding Maturities Net
Commonwealth Energy System -
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
30 000 $ - $30 000
Cambridge Electric Light Company -
30-Year 6 1/4% Notes, Series C, Due 6/1/97 4 322
30-Year 7 3/4% Notes, Series D, Due 6/1/02 2 703
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
42 025 20 160 21 865
Canal Electric Company -
First Mortgage Bonds, Series A,
7%, Due 10/1/96 3 800
First and General Mortgage Bonds:
Series B, 8.85%, Due 9/1/06 35 007
Series E, 7 3/8%, Due 12/1/20 9 959
Series F, 9 7/8%, Due 12/1/20 39 325
88 091 4 150 83 941
Commonwealth Gas Company -
First Mortgage Bonds:
Series H, 8.99%, Due 10/1/96 10 000
Series I, 8.99%, Due 12/1/01 21 750
Series J, 9.95%, Due 12/1/20 25 000
Series K, 7.11%, Due 12/30/33 35 000
91 750 13 650 78 100
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 29 933
25-Year 9.37%, Due 1/1/12 17 895
157 828 3 553 154 275
Hopkinton LNG Corp. -
5-Year Term Loan, variable rate,
6.5625% at 12/31/95, Due 12/29/98 9 000 - 9 000
$418 694 $41 513 $377 181
<PAGE>
<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, 1995
(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 436 891 436 891 -
Advances to associate companies 13 890 - 13 890
450 781 436 891 13 890
CURRENT ASSETS:
Accounts receivable -
affiliated companies 19 488 - 19 488
Prepaid income taxes 1 527 - -
Other 35 - -
21 050 - 19 488
DEFERRED CHARGES 7 537 - -
$479 654 $436 891 $ 33 378
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common Shares -
Subsidiaries $200 594 $200 594 $ -
Amounts paid in excess of par value 164 575 164 575 -
Retained earnings 72 120 71 722 -
Total Common Share Equity 437 289 436 891 -
CURRENT LIABILITIES:
Interim Financing -
Notes payable to parent 13 890 - 13 890
Other Current Liabilities -
Accounts payable - affiliated companies 19 488 - 19 488
Accrued taxes - income 1 527 - -
Accrued interest 35 - -
21 050 - 19 488
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes 7 425 - -
$479 654 $436 891 $ 33 378
<PAGE>
<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, 1995
(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 - 1 527 -
Other - - 35
- 1 527 35
DEFERRED CHARGES - 7 537 -
$ 286 $ 9 064 $ 35
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 - 1 527 -
Accrued interest - - 35
- 1 527 35
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes (112) 7 537 -
$ 286 $ 9 064 $ 35
<PAGE>
<PAGE 36>
EXHIBIT A-5
PAGE 3 of 5
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
ELIMINATIONS AND RECLASSIFICATIONS
TO
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1995
(Dollars in Thousands)
No. 1
Common shares - subsidiaries $200 594
Amounts paid in excess of par value 164 575
Retained Earnings 71 722
INVESTMENTS - Equity in common stock and earnings
of subsidiaries $436 891
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 $ 7 561 $ 44 179
Canal Electric Company 38 080 8 321 52 070 98 471
COM/Energy Acushnet Realty 325 - 250 575
COM/Energy Cambridge Realty 25 - 23 48
COM/Energy Freetown Realty 26 000 - (20 523) 5 477
COM/Energy Research Park Realty 350 - 389 739
COM/Energy Services Company 325 - 12 337
COM/Energy Steam Company 2 550 - 989 3 539
Commonwealth Electric Company 51 099 97 112 20 708 168 919
Commonwealth Gas Company 71 425 27 739 10 495 109 659
Darvel Realty Trust 1 700 - (645) 1 055
Hopkinton LNG Corp. 50 3 450 393 3 893
$200 594 $164 575 $ 71 722 $436 891
No. 2
Advances from affiliates $13 890
Accounts payable - Affiliates 19 488
INVESTMENTS - Advances to affiliates $13 890
Accounts receivable - Affiliates 19 488
To eliminate intercompany accounts as follows:
<PAGE>
<PAGE 37>
EXHIBIT A-5
PAGE 4 of 5
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
ELIMINATIONS AND RECLASSIFICATIONS
TO
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1995
(Dollars in Thousands)
Investments- Accounts Advances Accounts
Advances to Receivable- from Payable-
Affiliates Affiliates Affiliates Affiliates
Cambridge Electric Light Company $ - $ 2 140 $ 2 425 $ 3 787
Canal Electric Company - 9 271 5 865 2 049
COM/Energy Acushnet Realty 120 - - 2
COM/Energy Freetown Realty - - 1 085 20
COM/Energy Cambridge Realty 35 - - 1
COM/Energy Research Park Realty 495 - - 4
COM/Energy Services Company - 4 085 - 11
COM/Energy Steam Company - - 500 2 175
Commonwealth Electric Company - 2 570 1 545 8 987
Commonwealth Energy System 6 610 61 - 52
Commonwealth Gas Company - 188 1 850 2 221
Darvel Realty Trust 6 630 - - 22
Hopkinton LNG Corp. - 1 173 620 157
$13 890 $19 488 $13 890 $19 488
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 $1 527
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes 7 537
CURRENT ASSETS:
Prepaid income taxes $1 527
DEFERRED CHARGES 7 537
To reclassify income taxes.
<PAGE>
<PAGE 38>
EXHIBIT A-5
PAGE 5 of 5
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
ELIMINATIONS AND RECLASSIFICATIONS
TO
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1995
(Dollars in Thousands)
No. 5
CURRENT LIABILITIES:
Accrued interest $ 35
CURRENT ASSETS:
Other $ 35
To eliminate intercompany interest receivable and
payable on money pool transactions as follows:
Receivable Payable
Canal Electric Company $ - $26
Darvel Realty Trust 32 -
Commonwealth Gas Company - 2
Commonwealth Electric Company - 7
COM/Energy Acushnet Realty 1 -
COM/Energy Research Park Realty 2 -
$35 $35
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<PAGE 39>
EXHIBIT B
PAGE 1 of 1
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
FINANCIAL DATA SCHEDULE
DECEMBER 31, 1995
[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, 1995 and is qualified in
its entirety by reference to such financial statements.
[/LEGEND]
[CIK] 0000071304
[NAME] COMMONWEALTH ENERGY SYSTEM
[MULTIPLIER] 1,000
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] DEC-31-1995
[PERIOD-END] DEC-31-1995
[BOOK-VALUE] PER-BOOK
[TOTAL-ASSETS] 1,384,601
[TOTAL-OPERATING-REVENUES] 931,355
[NET-INCOME] 51,396
</TABLE>
<PAGE>
<PAGE 40>
EXHIBIT C
PAGE 1 of 2
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
DESCRIPTION OF PROPERTIES - ITEM 2 OF FORM U-3A-2
DECEMBER 31, 1995
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>
<PAGE 41>
EXHIBIT C
PAGE 2 of 2
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
DESCRIPTION OF PROPERTIES - ITEM 2 OF FORM U-3A-2
DECEMBER 31, 1995
(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>
<PAGE 42>
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, 1995
Sales at Retail or Wholesale
Electricity Gas
(KWH) (MMBTU-1000 BTU)
Cambridge Electric Light Company 1 476 183 700
Canal Electric Company 2 378 378 802
Commonwealth Gas Company 45 730 718.2
Commonwealth Electric Company 4 195 182 390
Total 8 049 744 892 45 730 718.2
Elimination (detailed below) 1 428 362 243 108 969.4
Consolidated 6 621 382 649 45 621 748.8
Detail of Intercompany Sales
Commonwealth Electric Company Sales -
To: Canal Electric Company 21 783 500
Commonwealth Gas Company 1 273 879
23 057 379
Commonwealth Gas Company Sales -
To: Cambridge Electric Light Company 108 969.4
Canal Electric Company Sales -
To: Cambridge Electric Light Company 283 737 092
Commonwealth Electric Company 1 121 567 772
1 405 304 864
Total Elimination 1 428 362 243 108 969.4
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>
<PAGE 43>
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, 1995
Purchases Outside State
or at State Line
Electricity Gas
(KWH) (MMBTU-1000 BTU)
Cambridge Electric Light Company 258 694 027 None
Canal Electric Company 309 669 785 None
Commonwealth Gas Company None None
Commonwealth Electric Company None None
Total 568 363 812
Elimination -
Consolidated 568 363 812 (A)
(A) Excluding power interchanged in the New England Power Pool (Pool) of
198,256,420 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.
