<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, 1996
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 27th day of February,
1997.
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 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, 1996 Pages 1 - 5
A - 2 Eliminations and Reclassifications to
Consolidating Statement of Income for
the Twelve Months Ended December 31, 1996
Summary Pages 1 - 3
Detail Pages 4 - 8
A - 3 Consolidating Statement of Retained
Earnings for the Twelve Months Ended
December 31, 1996 Pages 1 - 5
A - 4 Consolidating Balance Sheet -
December 31, 1996
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, 1996
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, 1996
(Dollars in Thousands)
Eliminations
and Reclass-
Consolidated ifications Total
OPERATING REVENUES:
Electric $ 649 678 $108 757 $ 758 435
Gas 341 867 621 342 488
Steam 17 242 - 17 242
Other 2 118 46 514 48 632
1 010 905 155 892 1 166 797
OPERATING EXPENSES:
Fuel used in electric and steam
production, principally oil 91 690 307 91 997
Electricity purchased for resale 265 019 102 157 367 176
Cost of gas sold 187 530 10 135 197 665
Other operation 215 319 43 371 258 690
Maintenance 40 913 - 40 913
Depreciation 51 782 - 51 782
Taxes -
Local property 18 049 - 18 049
Federal and state income -
Current 33 869 - 33 869
Deferred 3 515 - 3 515
Investment tax credits, net (1 285) - (1 285)
Payroll and other 7 839 - 7 839
914 240 155 970 1 070 210
OPERATING INCOME (LOSS) 96 665 (78) 96 587
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries - 60 396 60 396
Interest - subsidiaries - 1 909 1 909
Other, net 4 878 699 5 577
4 878 63 004 67 882
TOTAL INCOME 101 543 62 926 164 469
INTEREST CHARGES:
Long-term debt 35 586 - 35 586
Intercompany advances - 2 493 2 493
Other interest charges 7 039 37 7 076
Allowance for borrowed funds used
during construction (257) - (257)
42 368 2 530 44 898
NET INCOME (LOSS) $ 59 175 $ 60 396 $ 119 571
<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, 1996
(Dollars in Thousands)
Cambridge
Commonwealth Electric
Energy Subsidiaries Light
System Combined Company
OPERATING REVENUES:
Electric $ - $ 758 435 $119 105
Gas - 342 488 -
Steam - 17 242 -
Other - 48 632 -
- 1 166 797 119 105
OPERATING EXPENSES:
Fuel used in electric and steam
production, principally oil - 91 997 3 427
Electricity purchased for resale - 367 176 68 673
Cost of gas sold - 197 665 -
Other operation 1 112 257 578 26 934
Maintenance - 40 913 3 064
Depreciation - 51 782 4 254
Taxes -
Local property - 18 049 3 041
Federal and state income -
Current (819) 34 688 3 404
Deferred (450) 3 965 (628)
Investment tax credits, net - (1 285) (93)
Payroll and other 27 7 812 822
(130) 1 070 340 112 898
OPERATING INCOME (LOSS) 130 96 457 6 207
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries 60 396 - -
Interest - subsidiaries 1 909 - -
Other, net (2) 5 579 2 242
62 303 5 579 2 242
TOTAL INCOME 62 433 102 036 8 449
INTEREST CHARGES:
Long-term debt 3 175 32 411 2 238
Intercompany advances - 2 493 473
Other interest charges 83 6 993 684
Allowance for borrowed funds used
during construction - (257) (66)
3 258 41 640 3 329
NET INCOME (LOSS) $ 59 175 $ 60 396 $ 5 120
<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, 1996
(Dollars in Thousands)
COM/ COM/ COM/
Canal Energy Energy Energy
Electric Acushnet Cambridge Freetown
Company Realty Realty Realty
OPERATING REVENUES:
Electric $185 550 $ - $ - $ -
Gas - - - -
Steam - - - -
Other - 185 - -
185 550 185 - -
OPERATING EXPENSES:
Fuel used in electric and steam
production, principally oil 79 121 - - -
Electricity purchased for resale 8 476 - - -
Cost of gas sold - - - -
Other operation 29 992 24 8 240
Maintenance 11 768 - - -
Depreciation 18 682 - - -
Taxes -
Local property 2 603 28 1 126
Federal and state income -
Current 11 210 79 (2) 48
Deferred (963) - - (70)
Investment tax credits, net (527) - - -
Payroll and other 726 - - -
161 088 131 7 344
OPERATING INCOME (LOSS) 24 462 54 (7) (344)
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries - - - -
Interest - subsidiaries - - - -
Other, net 2 393 65 2 -
2 393 65 2 -
TOTAL INCOME 26 855 119 (5) (344)
INTEREST CHARGES:
Long-term debt 8 017 - - -
Intercompany advances 1 015 - - 102
Other interest charges 1 322 - - -
Allowance for borrowed funds used
during construction (73) - - -
10 281 - - 102
NET INCOME (LOSS) $ 16 574 $ 119 $ (5) $ (446)
<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, 1996
(Dollars in Thousands)
COM/ COM/ Common-
COM/Energy Energy Energy wealth
Research Services Steam Electric
Park Realty Company Company Company
OPERATING REVENUES:
Electric $ - $ - $ - $453 780
Gas - - - -
Steam - - 17 242 -
Other 1 006 36 390 - -
1 006 36 390 17 242 453 780
OPERATING EXPENSES:
Fuel used in electric and steam
production, principally oil - - 9 313 136
Electricity purchased for resale - - - 290 027
Cost of gas sold - - - -
Other operation 74 35 243 4 449 76 295
Maintenance - - 403 12 849
Depreciation - - 292 17 041
Taxes -
Local property 206 - 85 5 485
Federal and state income -
Current 385 (726) 1 011 12 815
Deferred (91) 606 12 569
Investment tax credits, net - - (3) (433)
Payroll and other - 1 166 49 2 645
574 36 289 15 611 417 429
OPERATING INCOME (LOSS) 432 101 1 631 36 351
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries - - - -
Interest - subsidiaries - - - -
Other, net 29 (128) 7 (477)
29 (128) 7 (477)
TOTAL INCOME 461 (27) 1 638 35 874
INTEREST CHARGES:
Long-term debt - - - 13 968
Intercompany advances - - 55 675
Other interest charges - - - 1 724
Allowance for borrowed funds used
during construction - - - (98)
- - 55 16 269
NET INCOME (LOSS) $ 461 $ (27) $ 1 583 $ 19 605
<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, 1996
(Dollars in Thousands)
Common-
wealth Darvel Hopkinton
Gas Realty LNG
Company Trust Corp.
OPERATING REVENUES:
Electric $ - $ - $ -
Gas 342 488 - -
Steam - - -
Other - 927 10 124
342 488 927 10 124
OPERATING EXPENSES:
Fuel used in electric and steam
production, principally oil - - -
Electricity purchased for resale - - -
Cost of gas sold 197 665 - -
Other operation 76 621 1 075 6 623
Maintenance 12 829 - -
Depreciation 10 061 - 1 452
Taxes -
Local property 5 943 - 531
Federal and state income -
Current 6 235 (316) 545
Deferred 4 249 473 (192)
Investment tax credits, net (202) - (27)
Payroll and other 2 385 - 19
315 786 1 232 8 951
OPERATING INCOME (LOSS) 26 702 (305) 1 173
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries - - -
Interest - subsidiaries - - -
Other, net 935 507 4
935 507 4
TOTAL INCOME 27 637 202 1 177
INTEREST CHARGES:
Long-term debt 7 604 - 584
Intercompany advances 129 - 44
Other interest charges 3 135 127 1
Allowance for borrowed funds used
during construction (20) - -
10 848 127 629
NET INCOME (LOSS) $ 16 789 $ 75 $ 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, 1996
(Dollars in Thousands)
ENTRY NUMBER (See Pages 4-8 for detail)
TOTAL 1 2 3 4 5
STATEMENT OF INCOME CAPTION
OPERATING REVENUES:
Electric $108 757 $53 488 $11 882 $ 2 029 $39 780 $ -
Gas 621 - - - - 621
Other 46 514 - - - - -
OPERATING EXPENSES:
Fuel used in electric
and steam production 307 - - - - 610
Electricity purchased
for resale 102 157 52 035 8 567 2 029 39 526 -
Cost of gas sold 10 135 - - - - 11
Other operation 43 371 1 453 3 315 - 254 -
OTHER INCOME:
Equity in earnings of
subsidiaries 60 396 - - - - -
Interest - subsidiaries 1 909 - - - - -
Other, net 699 - - - - -
INTEREST CHARGES:
Intercompany advances 2 493 - - - - -
Other interest charges 37 - - - - -
NET INCOME $ 60 396
<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, 1996
(Dollars in Thousands)
ENTRY NUMBER (See Pages 4-8 for detail)
6 7 8 9 10 11
STATEMENT OF INCOME CAPTION
OPERATING REVENUES:
Electric $1 522 $ - $ - $ - $ - $ 56
Gas - - - - - -
Other - 36 390 - - - -
OPERATING EXPENSES:
Fuel used in electric
and steam production - - - - - -
Electricity purchased
for resale - - - - - -
Cost of gas sold - - - - - -
Other operation 1 522 36 390 - - - 56
OTHER INCOME:
Equity in earnings of
subsidiaries - - 60 396 - - -
Interest - subsidiaries - - - 1 909 - -
Other, net - - - - 584 -
INTEREST CHARGES:
Intercompany advances - - - 1 909 584 -
Other interest charges - - - - - -
NET INCOME $60 396
<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, 1996
(Dollars in Thousands)
ENTRY NUMBER (See Pages 4-8 for detail)
12 13 14 15
STATEMENT OF INCOME CAPTION
OPERATING REVENUES:
Electric $ - $ - $ - $ -
Gas - - - -
Other - - - 10 124
OPERATING EXPENSES:
Fuel used in electric
and steam production (303) - - -
Electricity purchased
for resale - - - -
Cost of gas sold - - - 10 124
Other operation 303 78 - -
OTHER INCOME:
Equity in earnings of
subsidiaries - - - -
Interest - subsidiaries - - - -
Other, net - 78 37 -
INTEREST CHARGES:
Intercompany advances - - - -
Other interest charges - - 37 -
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, 1996
(Dollars in Thousands)
No. 1
OPERATING REVENUES:
Electric $53 488
OPERATING EXPENSES:
Electricity purchased for resale $52 035
Other operation 1 453
To eliminate intercompany sales of electricity as follows:
OPERATING EXPENSES
OPERATING Electricity
REVENUES Purchased Other
Electric for Resale Operation
Canal Electric Company $52 035 $ - $ -
Cambridge Electric Light Company - 11 302 -
Commonwealth Electric Company - 40 733 -
Commonwealth Electric Company 1 453 - -
Canal Electric Company - - 1 314
Commonwealth Gas Company - - 139
$53 488 $52 035 $ 1 453
No. 2
OPERATING REVENUES:
Electric $11 882
OPERATING EXPENSES:
Electricity purchased for resale $8 567
Other operation 3 315
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 $ 2 029
OPERATING EXPENSES:
Electricity purchased for resale $ 2 029
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, 1996
(Dollars in Thousands)
No. 4
OPERATING REVENUES:
Electric $39 780
OPERATING EXPENSES:
Electricity purchased for resale $39 526
Other operation 254
To eliminate intercompany sales of electricity, including transmission costs,
by Canal Electric Company to Commonwealth Electric Company
($31,848,000) and Cambridge Electric Light Company ($7,932,000)
from the Seabrook nuclear power plant.
No. 5
OPERATING REVENUES:
Gas $ 621
OPERATING EXPENSES:
Fuel used in electric and steam production $ 610
Cost of gas sold 11
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 $ 1 522
OPERATING EXPENSES:
Other operation $ 1 522
To eliminate intercompany rents billed by Commonwealth Electric
Company to Cambridge Electric Light Company and Canal
Electric Company.
No. 7
OPERATING REVENUES:
Other $36 390
OPERATING EXPENSES:
Other operation $36 390
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, 1996
(Dollars in Thousands)
No. 8
OTHER INCOME:
Equity in earnings of subsidiaries $60 396
RETAINED EARNINGS $60 396
To eliminate Commonwealth Energy System's equity in 1996
earnings (losses) of subsidiaries as follows:
Cambridge Electric Light Company $ 5 120
Canal Electric Company 16 574
COM/Energy Acushnet Realty 119
COM/Energy Cambridge Realty (5)
COM/Energy Freetown Realty (446)
COM/Energy Research Park Realty 461
COM/Energy Services Company (27)
COM/Energy Steam Company 1 583
Commonwealth Electric Company 19 605
Commonwealth Gas Company 16 789
Darvel Realty Trust 75
Hopkinton LNG Corp. 548
$60 396
No. 9
OTHER INCOME:
Interest - subsidiaries $ 1 909
INTEREST CHARGES:
Intercompany advances $ 1 909
To eliminate interest income of Commonwealth Energy System
from subsidiaries as follows:
Cambridge Electric Light Company $ 364
Canal Electric Company 752
COM/Energy Freetown Realty 102
Commonwealth Electric Company 487
Commonwealth Gas Company 105
Hopkinton LNG Corp. 44
COM/Energy Steam Company 55
$1 909
<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, 1996
(Dollars in Thousands)
No. 10
OTHER INCOME:
Other, net $ 584
INTEREST CHARGES:
Intercompany advances $ 584
To eliminate intercompany interest income and expense as follows:
Income Expense
Cambridge Electric Light Company $ - $ 109
Canal Electric Company - 263
COM/Energy Acushnet Realty 2 -
COM/Energy Cambridge Realty 2 -
Darvel Realty Trust 364 -
COM/Energy Research Park Realty 30 -
COM/Energy Steam Company 7 -
Hopkinton LNG Corp. 1 -
Commonwealth Electric Company - 188
Commonwealth Gas Company 178 24
$ 584 $ 584
No. 11
OPERATING REVENUES:
Electric $ 56
OPERATING EXPENSES:
Other operation $ 56
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 $ 303
OPERATING EXPENSES:
Other operation $ 303
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, 1996
(Dollars in Thousands)
No. 13
OTHER INCOME:
Other, net $ 78
OPERATING EXPENSES:
Other operation $ 78
To eliminate intercompany rent billed by Cambridge Electric Light
Company to COM/Energy Steam Company.
No. 14
INTEREST INCOME:
Other, net $ 37
INTEREST CHARGES:
Other interest charges $ 37
To reclassify interest income and expense related to contested income tax
issues.
No. 15
OPERATING REVENUES:
Other $10 124
OPERATING EXPENSES:
Cost of Gas Sold $10 124
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, 1996
(Dollars in Thousands)
Eliminations
and Reclass-
Consolidated ifications Total
Balance at December 31, 1995 $235 980 $ 72 120 $308 100
Add-
Net income for the year 59 175 60 396 119 571
295 155 132 516 427 671
Deduct-
Cash dividends-
System-
Common shares 33 155 - 33 155
Preferred shares 1 050 - 1 050
Subsidiaries-
Common stock - 51 867 51 867
34 205 51 867 86 072
Balance at December 31, 1996 $260 950 $ 80 649 $341 599
<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, 1996
(Dollars in Thousands)
Cambridge
Commonwealth Electric
Energy Subsidiaries Light
System Combined Company
Balance at December 31, 1995 $235 980 $ 72 120 $ 7 561
Add-
Net income for the year 59 175 60 396 5 120
295 155 132 516 12 681
Deduct-
Cash dividends-
System-
Common shares 33 155 - -
Preferred shares 1 050 - -
Subsidiaries-
Common stock - 51 867 3 448
34 205 51 867 3 448
Balance at December 31, 1996 $260 950 $ 80 649 $ 9 233
<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, 1996
(Dollars in Thousands)
Canal COM/Energy COM/Energy COM/Energy
Electric Acushnet Cambridge Freetown
Company Realty Realty Realty
Balance at December 31, 1995 $ 52 070 $ 250 $ 23 $(20 523)
Add-
Net income for the year 16 574 119 (5) (446)
68 644 369 18 (20 969)
Deduct-
Cash dividends-
System-
Common shares - - - -
Preferred shares - - - -
Subsidiaries-
Common stock 16 024 - - -
16 024 - - -
Balance at December 31, 1996 $ 52 620 $ 369 $ 18 $(20 969)
<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, 1996
(Dollars in Thousands)
Common-
COM/Energy COM/Energy COM/Energy wealth
Research Services Steam Electric
Park Realty Company Company Company
Balance at December 31, 1995 $ 389 $ 12 $ 989 $20 708
Add-
Net income for the year 461 (27) 1 583 19 605
850 (15) 2 572 40 313
Deduct-
Cash dividends-
System-
Common shares - - - -
Preferred shares - - - -
Subsidiaries-
Common stock 323 48 1 928 12 979
323 48 1 928 12 979
Balance at December 31, 1996 $ 527 $ (63) $ 644 $27 334
<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, 1996
(Dollars in Thousands)
Common-
wealth Darvel Hopkinton
Gas Realty LNG
Company Trust Corp.
Balance at December 31, 1995 $ 10 495 $ (247) $ 393
Add-
Net income for the year 16 789 75 548
27 284 (172) 941
Deduct-
Cash dividends-
System-
Common shares - - -
Preferred shares - - -
Subsidiaries-
Common stock 16 428 129 560
16 428 129 560
Balance at December 31, 1996 $ 10 856 $ (301) $ 381
<PAGE 23>
EXHIBIT A-4
PAGE 1 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1996
(Dollars in Thousands)
Eliminations
and Reclass-
Consolidated ifications Total
PROPERTY, PLANT AND EQUIPMENT,
at original cost:
Electric $1 143 069 $ - $1 143 069
Gas 358 239 - 358 239
Other 66 406 286 66 692
Leased property, net 13 877 - 13 877
1 581 591 286 1 581 877
Less: Accumulated depreciation
and amortization 535 964 - 535 964
Net Property, Plant and Equipment 1 045 627 286 1 045 913
INVESTMENTS:
Equity in common stock and earnings
of subsidiary companies - 445 420 445 420
Advances to associate companies - 30 260 30 260
Equity in corporate joint ventures-
Nuclear electric power companies
(2.5% to 4.5%) 10 046 - 10 046
Other, at cost 3 349 - 3 349
13 395 475 680 489 075
CURRENT ASSETS:
Cash 1 495 - 1 495
Accounts receivable:
Affiliated companies - 20 763 20 763
Other 125 332 - 125 332
Reserve for uncollectible accounts (8 324) - (8 324)
Unbilled revenues 31 698 - 31 698
Inventories, at average cost-
Materials and supplies 6 220 - 6 220
Natural gas 23 084 - 23 084
Electric production fuel oil 2 221 - 2 221
Prepaid property taxes 9 079 - 9 079
Prepaid income taxes - 7 851 7 851
Other 5 686 35 5 721
Total Current Assets 196 491 28 649 225 140
DEFERRED CHARGES 173 442 7 145 180 587
TOTAL $1 428 955 $ 511 760 $1 940 715
<PAGE 24>
EXHIBIT A-4
PAGE 2 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1996
(Dollars in Thousands)
Cambridge
Commonwealth Electric
Energy Subsidiaries Light
System Combined Company
PROPERTY, PLANT AND EQUIPMENT,
at original cost:
Electric $ - $1 143 069 $ 154 185
Gas - 358 239 -
Other - 66 692 7 692
Leased property, net - 13 877 -
- 1 581 877 161 877
Less: Accumulated depreciation
and amortization - 535 964 61 499
Net Property, Plant and Equipment - 1 045 913 100 378
INVESTMENTS:
Equity in common stock and earnings
of subsidiary companies 445 420 - -
Advances to associate companies 22 495 7 865 -
Equity in corporate joint ventures-
Nuclear electric power companies
(2.5% to 4.5%) - 10 046 9 403
Other, at cost - 3 349 5
467 915 21 260 9 408
CURRENT ASSETS:
Cash 303 1 192 143
Accounts receivable:
Affiliated companies 176 20 587 1 452
Other 5 125 327 11 767
Reserve for uncollectible accounts - (8 324) (482)
Unbilled revenues - 31 698 2 751
Inventories, at average cost-
Materials and supplies - 6 220 468
Natural gas - 23 084 -
Electric production fuel oil - 2 221 1 101
Prepaid property taxes - 9 079 1 704
Prepaid income taxes - 7 851 968
Other 30 5 691 454
Total Current Assets 514 224 626 20 326
DEFERRED CHARGES 602 179 985 45 039
TOTAL $ 469 031 $1 471 684 $ 175 151
<PAGE 25>
EXHIBIT A-4
PAGE 3 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1996
(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 $454 080 $ - $ - $ -
Gas - - - -
Other 9 553 3 2 932
Leased property, net 12 454 - - -
466 543 553 3 2 932
Less: Accumulated depreciation
and amortization 179 307 - - -
Net Property, Plant and Equipment 287 236 553 3 2 932
INVESTMENTS:
Equity in common stock and earnings
of subsidiary companies - - - -
Advances to associate companies - 30 35 -
Equity in corporate joint ventures-
Nuclear electric power companies
(2.5% to 4.5%) - - - -
Other, at cost 3 321 - - -
3 321 30 35 -
CURRENT ASSETS:
Cash 12 5 3 1
Accounts receivable:
Affiliated companies 10 294 124 - -
Other 12 390 25 - -
Reserve for uncollectible accounts - - - -
Unbilled revenues 675 - - -
Inventories, at average cost-
Materials and supplies 1 296 - - -
Natural gas - - - -
Electric production fuel oil 979 - - -
Prepaid property taxes 795 13 1 63
Prepaid income taxes 64 - - -
Other 1 116 - - 12
Total Current Assets 27 621 167 4 76
DEFERRED CHARGES 25 345 1 2 3 884
TOTAL $343 523 $ 751 $ 44 $ 6 892
<PAGE 26>
EXHIBIT A-4
PAGE 4 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1996
(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 $ - $ - $ - $534 804
Gas - - - -
Other 384 251 7 800 2 515
Leased property, net - 1 423 - -
384 1 674 7 800 537 319
Less: Accumulated depreciation
and amortization 125 251 4 292 163 397
Net Property, Plant and Equipment 259 1 423 3 508 373 922
INVESTMENTS:
Equity in common stock and earnings
of subsidiary companies - - - -
Advances to associate companies 360 - - -
Equity in corporate joint ventures-
Nuclear electric power companies
(2.5% to 4.5%) - - - 643
Other, at cost - - - 14
360 - - 657
CURRENT ASSETS:
Cash 15 106 112 358
Accounts receivable:
Affiliated companies 17 4 434 - 2 662
Other 57 547 2 882 44 436
Reserve for uncollectible accounts - - - (1 792)
Unbilled revenues - - 646 6 741
Inventories, at average cost-
Materials and supplies - - 6 2 830
Natural gas - - - -
Electric production fuel oil - - - 141
Prepaid property taxes 95 - 46 3 024
Prepaid income taxes - 903 234 -
Other 3 1 057 25 1 609
Total Current Assets 187 7 047 3 951 60 009
DEFERRED CHARGES 416 5 111 5 71 411
TOTAL $ 1 222 $ 13 581 $ 7 464 $505 999
<PAGE 27>
EXHIBIT A-4
PAGE 5 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1996
(Dollars in Thousands)
Common-
wealth Darvel Hopkinton
Gas Realty LNG
Company Trust Corp.
PROPERTY, PLANT AND EQUIPMENT,
at original cost:
Electric $ - $ - $ -
Gas 358 239 - -
Other 1 380 1 777 41 396
Leased property, net - - -
359 619 1 777 41 396
Less: Accumulated depreciation
and amortization 102 278 - 24 815
Net Property, Plant and Equipment 257 341 1 777 16 581
INVESTMENTS:
Equity in common stock and earnings
of subsidiary companies - - -
Advances to associate companies - 7 340 -
Equity in corporate joint ventures-
Nuclear electric power companies
(2.5% to 4.5%) - - -
Other, at cost 9 - -
9 7 340 -
CURRENT ASSETS:
Cash 421 9 7
Accounts receivable:
Affiliated companies 242 - 1 362
Other 49 825 3 334 64
Reserve for uncollectible accounts (2 738) (3 312) -
Unbilled revenues 20 885 - -
Inventories, at average cost-
Materials and supplies 1 620 - -
Natural gas 23 084 - -
Electric production fuel oil - - -
Prepaid property taxes 3 061 - 277
Prepaid income taxes 5 619 15 48
Other 981 135 299
Total Current Assets 103 000 181 2 057
DEFERRED CHARGES 28 580 107 84
TOTAL $388 930 $ 9 405 $ 18 722
<PAGE 28>
EXHIBIT A-4
PAGE 6 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - CAPITALIZATION AND LIABILITIES
DECEMBER 31, 1996
(Dollars in Thousands)
Eliminations
and Reclass-
Consolidated ifications Total
CAPITALIZATION:
Common Shares - Commonwealth Energy
System $2 par value, 21,529,676
shares outstanding (704 shares
issued during 1996) $ 43 059 $ - $ 43 059
Subsidiaries - 200 594 200 594
Amounts paid in excess of par value 111 685 164 575 276 260
Retained earnings 260 950 80 649 341 599
Total Common Share Equity 415 694 445 818 861 512
Redeemable Preferred Shares, $100 par
value, less current sinking fund
requirements:
Series A, 4.80%, 26,400 shares
authorized and outstanding 2 520 - 2 520
Series B, 8.10%, 40,000 shares
authorized and outstanding 3 840 - 3 840
Series C, 7.75%, 72,000 shares
authorized and outstanding 6 660 - 6 660
Long-Term Debt, including premiums,
less current sinking fund require-
ments and maturities 355 305 - 355 305
Total Capitalization 784 019 445 818 1 229 837
Capital Lease Obligations-Non Current 12 346 - 12 346
CURRENT LIABILITIES:
Interim Financing -
Notes payable to banks 118 475 - 118 475
Advances from affiliates - 30 260 30 260
Maturing long-term debt 14 260 - 14 260
Total Interim Financing 132 735 30 260 162 995
Other Current Liabilities -
Current sinking fund requirements 8 473 - 8 473
Accounts payable -
Affiliates - 20 763 20 763
Other 90 269 - 90 269
Dividends declared 8 289 - 8 289
Customers' deposits 3 358 - 3 358
Accrued taxes -
Income 7 910 7 851 15 761
Local property and other 9 060 - 9 060
Accrued interest 6 267 35 6 302
Capital lease obligations 1 531 - 1 531
Other 34 390 - 34 390
Total Other Current Liabilities 169 547 28 649 198 196
Total Current Liabilities 302 282 58 909 361 191
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes 174 877 7 033 181 910
Unamortized investment tax credits 26 618 - 26 618
Other 128 813 - 128 813
Total Deferred Credits and Reserves 330 308 7 033 337 341
TOTAL $1 428 955 $ 511 760 $1 940 715
<PAGE 29>
EXHIBIT A-4
PAGE 7 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - CAPITALIZATION AND LIABILITIES
DECEMBER 31, 1996
(Dollars in Thousands)
Cambridge
Commonwealth Electric
Energy Subsidiaries Light
System Combined Company
CAPITALIZATION:
Common Shares - Commonwealth Energy
System $2 par value, 21,529,676
shares outstanding (704 shares
issued during 1996) $ 43 059 $ - $ -
Subsidiaries - 200 594 8 665
Amounts paid in excess of par value 111 685 164 575 27 953
Retained earnings 260 950 80 649 9 233
Total Common Share Equity 415 694 445 818 45 851
Redeemable Preferred Shares, $100 par
value, less current sinking fund
requirements:
Series A, 4.80%, 26,400 shares
authorized and outstanding 2 520 - -
Series B, 8.10%, 40,000 shares
authorized and outstanding 3 840 - -
Series C, 7.75%, 72,000 shares
authorized and outstanding 6 660 - -
Long-Term Debt, including premiums,
less current sinking fund require-
ments and maturities 20 000 335 305 17 503
Total Capitalization 448 714 781 123 63 354
Capital Lease Obligations-Non Current - 12 346 -
CURRENT LIABILITIES:
Interim Financing -
Notes payable to banks - 118 475 18 725
Advances from affiliates - 30 260 5 065
Maturing long-term debt 10 000 4 260 4 260
Total Interim Financing 10 000 152 995 28 050
Other Current Liabilities -
Current sinking fund requirements 820 7 653 100
Accounts payable -
Affiliates 40 20 723 4 429
Other 303 89 966 8 216
Dividends declared 8 289 - -
Customers' deposits - 3 358 -
Accrued taxes -
Income 63 15 698 -
Local property and other - 9 060 1 705
Accrued interest 26 6 276 475
Capital lease obligations - 1 531 -
Other 101 34 289 3 738
Total Other Current Liabilities 9 642 188 554 18 663
Total Current Liabilities 19 642 341 549 46 713
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes - 181 910 14 355
Unamortized investment tax credits - 26 618 1 849
Other 675 128 138 48 880
Total Deferred Credits and Reserves 675 336 666 65 084
TOTAL $ 469 031 $1 471 684 $ 175 151
<PAGE 30>
EXHIBIT A-4
PAGE 8 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - CAPITALIZATION AND LIABILITIES
DECEMBER 31, 1996
(Dollars in Thousands)
COM/ COM/ COM/
Canal Energy Energy Energy
Electric Acushnet Cambridge Freetown
Company Realty Realty Realty
CAPITALIZATION:
Common Shares - Commonwealth Energy
System $2 par value, 21,529,676
shares outstanding (704 shares
issued during 1996) $ - $ - $ - $ -
Subsidiaries 38 080 325 25 26 000
Amounts paid in excess of par value 8 321 - - -
Retained earnings 52 620 369 18 (20 969)
Total Common Share Equity 99 021 694 43 5 031
Redeemable Preferred Shares, $100 par
value, less current sinking fund
requirements:
Series A, 4.80%, 26,400 shares
authorized and outstanding - - - -
Series B, 8.10%, 40,000 shares
authorized and outstanding - - - -
Series C, 7.75%, 72,000 shares
authorized and outstanding - - - -
Long-Term Debt, including premiums,
less current sinking fund require-
ments and maturities 83 618 - - -
Total Capitalization 182 639 694 43 5 031
Capital Lease Obligations-Non Current 11 878 - - -
CURRENT LIABILITIES:
Interim Financing -
Notes payable to banks 26 550 - - -
Advances from affiliates 7 250 - - 1 305
Maturing long-term debt - - - -
Total Interim Financing 33 800 - - 1 305
Other Current Liabilities -
Current sinking fund requirements 350 - - -
Accounts payable -
Affiliates 1 347 1 - 31
Other 18 123 - - -
Dividends declared - - - -
Customers' deposits - - - -
Accrued taxes -
Income - 38 - 141
Local property and other 795 13 1 67
Accrued interest 1 424 - - -
Capital lease obligations 576 - - -
Other 2 562 - - 317
Total Other Current Liabilities 25 177 52 1 556
Total Current Liabilities 58 977 52 1 1 861
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes 71 550 5 - -
Unamortized investment tax credits 11 493 - - -
Other 6 986 - - -
Total Deferred Credits and Reserves 90 029 5 - -
TOTAL $343 523 $ 751 $ 44 $ 6 892
<PAGE 31>
EXHIBIT A-4
PAGE 9 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - CAPITALIZATION AND LIABILITIES
DECEMBER 31, 1996
(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 $2 par value, 21,529,676
shares outstanding (704 shares
issued during 1996) $ - $ - $ - $ -
Subsidiaries 350 325 2 550 51 099
Amounts paid in excess of par value - - - 97 112
Retained earnings 527 (63) 644 27 334
Total Common Share Equity 877 262 3 194 175 545
Redeemable Preferred Shares, $100 par
value, less current sinking fund
requirements:
Series A, 4.80%, 26,400 shares
authorized and outstanding - - - -
Series B, 8.10%, 40,000 shares
authorized and outstanding - - - -
Series C, 7.75%, 72,000 shares
authorized and outstanding - - - -
Long-Term Debt, including premiums,
less current sinking fund require-
ments and maturities - - - 150 734
Total Capitalization 877 262 3 194 326 279
Capital Lease Obligations-Non Current - 468 - -
CURRENT LIABILITIES:
Interim Financing -
Notes payable to banks - - - 15 000
Advances from affiliates - - 2 155 3 070
Maturing long-term debt - - - -
Total Interim Financing - - 2 155 18 070
Other Current Liabilities -
Current sinking fund requirements - - - 3 553
Accounts payable -
Affiliates 3 36 1 482 10 213
Other - 1 924 354 28 137
Dividends declared - - - -
Customers' deposits - - - 1 927
Accrued taxes -
Income 57 - - 15 462
Local property and other 76 2 46 3 025
Accrued interest - - - 3 894
Capital lease obligations - 955 - -
Other - 478 19 10 453
Total Other Current Liabilities 136 3 395 1 901 76 664
Total Current Liabilities 136 3 395 4 056 94 734
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes - - 43 47 716
Unamortized investment tax credits - - 34 7 126
Other 209 9 456 137 30 144
Total Deferred Credits and Reserves 209 9 456 214 84 986
TOTAL $ 1 222 $ 13 581 $ 7 464 $505 999
<PAGE 32>
EXHIBIT A-4
PAGE 10 of 11
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET - CAPITALIZATION AND LIABILITIES
DECEMBER 31, 1996
(Dollars in Thousands)
Common-
wealth Darvel Hopkinton
Gas Realty LNG
Company Trust Corp.
CAPITALIZATION:
Common Shares - Commonwealth Energy
System $2 par value, 21,529,676
shares outstanding (704 shares
issued during 1996) $ - $ - $ -
Subsidiaries 71 425 1 700 50
Amounts paid in excess of par value 27 739 - 3 450
Retained earnings 10 856 (301) 381
Total Common Share Equity 110 020 1 399 3 881
Redeemable Preferred Shares, $100 par
value, less current sinking fund
requirements:
Series A, 4.80%, 26,400 shares
authorized and outstanding - - -
Series B, 8.10%, 40,000 shares
authorized and outstanding - - -
Series C, 7.75%, 72,000 shares
authorized and outstanding - - -
Long-Term Debt, including premiums,
less current sinking fund require-
ments and maturities 74 450 - 9 000
Total Capitalization 184 470 1 399 12 881
Capital Lease Obligations-Non Current - - -
CURRENT LIABILITIES:
Interim Financing -
Notes payable to banks 58 200 - -
Advances from affiliates 10 400 - 1 015
Maturing long-term debt - - -
Total Interim Financing 68 600 - 1 015
Other Current Liabilities -
Current sinking fund requirements 3 650 - -
Accounts payable -
Affiliates 3 081 20 80
Other 32 904 - 308
Dividends declared - - -
Customers' deposits 952 - -
Accrued taxes -
Income - - -
Local property and other 3 060 - 270
Accrued interest 458 - 25
Capital lease obligations - - -
Other 16 681 137 383
Total Other Current Liabilities 60 786 157 1 066
Total Current Liabilities 129 386 157 2 081
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes 37 088 7 849 3 304
Unamortized investment tax credits 5 660 - 456
Other 32 326 - -
Total Deferred Credits and Reserves 75 074 7 849 3 760
TOTAL $388 930 $ 9 405 $ 18 722
<PAGE 33>
EXHIBIT A-4
PAGE 5 of 5
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
NOTE TO CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1996
(Dollars in Thousands)
Consolidated long-term debt, including Less Current
premiums, at December 31, 1996 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 $10 000 $20 000
Cambridge Electric Light Company -
30-Year 6 1/4% Notes, Series C, Due 6/1/97 4 261
30-Year 7 3/4% Notes, Series D, Due 6/1/02 2 602
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
21 863 4 360 17 503
Canal Electric Company -
First and General Mortgage Bonds:
Series B, 8.85%, Due 9/1/06 34 656
Series E, 7 3/8%, Due 12/1/20 9 960
Series F, 9 7/8%, Due 12/1/20 39 352
83 968 350 83 618
Commonwealth Gas Company -
First Mortgage Bonds:
Series I, 8.99%, Due 12/1/01 18 100
Series J, 9.95%, Due 12/1/20 25 000
Series K, 7.11%, Due 12/30/33 35 000
78 100 3 650 74 450
Commonwealth Electric Company -
Notes:
15-Year, 9.50%, Due 12/1/04 12 500
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 29 945
25-Year 9.37%, Due 1/1/12 16 842
154 287 3 553 150 734
Hopkinton LNG Corp. -
5-Year Term Loan, variable rate,
6.125% at 12/31/96, Due 12/29/98 9 000 - 9 000
$377 218 $21 913 $355 305
<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, 1996
(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 445 420 445 420 -
Advances to associate companies 30 260 - 30 260
475 680 445 420 30 260
CURRENT ASSETS:
Accounts receivable -
affiliated companies 20 763 - 20 763
Prepaid income taxes 7 851 - -
Other 35 - -
28 649 - 20 763
DEFERRED CHARGES 7 145 - -
$511 760 $445 420 $ 51 023
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common Shares -
Subsidiaries $200 594 $200 594 $ -
Amounts paid in excess of par value 164 575 164 575 -
Retained earnings 80 649 80 251 -
Total Common Share Equity 445 818 445 420 -
CURRENT LIABILITIES:
Interim Financing -
Advances from associate companies 30 260 - 30 260
Other Current Liabilities -
Accounts payable - affiliated companies 20 763 - 20 763
Accrued taxes - income 7 851 - -
Accrued interest 35 - -
28 649 - 20 763
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes 7 033 - -
$511 760 $445 420 $ 51 023
<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, 1996
(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 - 7 851 -
Other - - 35
- 7 851 35
DEFERRED CHARGES - 7 145 -
$ 286 $14 996 $ 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 -
Advances from associate companies - - -
Other Current Liabilities -
Accounts payable - affiliated companies - - -
Accrued taxes - income - 7 851 -
Accrued interest - - 35
- 7 851 35
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes (112) 7 145 -
$ 286 $14 996 $ 35
<PAGE 36>
EXHIBIT A-5
PAGE 3 of 5
COMMONWEALTH ENERGY SYSTEM AND SUBSIDIARY COMPANIES
ELIMINATIONS AND RECLASSIFICATIONS
TO
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1996
(Dollars in Thousands)
No. 1
Common shares - subsidiaries $200 594
Amounts paid in excess of par value 164 575
Retained Earnings 80 251
INVESTMENTS - Equity in common stock and earnings
of subsidiaries $445 420
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 $ 9 233 $ 45 851
Canal Electric Company 38 080 8 321 52 620 99 021
COM/Energy Acushnet Realty 325 - 369 694
COM/Energy Cambridge Realty 25 - 18 43
COM/Energy Freetown Realty 26 000 - (20 969) 5 031
COM/Energy Research Park Realty 350 - 527 877
COM/Energy Services Company 325 - (63) 262
COM/Energy Steam Company 2 550 - 644 3 194
Commonwealth Electric Company 51 099 97 112 27 334 175 545
Commonwealth Gas Company 71 425 27 739 10 856 110 020
Darvel Realty Trust 1 700 - (699) 1 001
Hopkinton LNG Corp. 50 3 450 381 3 881
$200 594 $164 575 $ 80 251 $445 420
No. 2
Advances from affiliates $30 260
Accounts payable - Affiliates 20 763
INVESTMENTS - Advances to affiliates $30 260
Accounts receivable - Affiliates 20 763
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, 1996
(Dollars in Thousands)
Investments- Accounts Advances Accounts
Advances to Receivable- from Payable-
Affiliates Affiliates Affiliates Affiliates
Cambridge Electric Light Company $ - $ 1 452 $ 5 065 $ 4 429
Canal Electric Company - 10 294 7 250 1 347
COM/Energy Acushnet Realty 30 124 - 1
COM/Energy Freetown Realty - - 1 305 31
COM/Energy Cambridge Realty 35 17 - -
COM/Energy Research Park Realty 360 - - 3
COM/Energy Services Company - 4 434 - 36
COM/Energy Steam Company - - 2 155 1 482
Commonwealth Electric Company - 2 662 3 070 10 213
Commonwealth Energy System 22 495 176 - 40
Commonwealth Gas Company - 242 10 400 3 081
Darvel Realty Trust 7 340 - - 20
Hopkinton LNG Corp. - 1 362 1 015 80
$30 260 $20 763 $30 260 $20 763
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 $7 851
DEFERRED CREDITS AND RESERVES:
Accumulated deferred income taxes 7 145
CURRENT ASSETS:
Prepaid income taxes $7 851
DEFERRED CHARGES 7 145
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, 1996
(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 $ - $11
Darvel Realty Trust 33 -
Commonwealth Gas Company - 18
Commonwealth Electric Company - 4
Cambridge Electric Light Company - 2
COM/Energy Research Park Realty 2 -
$35 $35
<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, 1996
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, 1996
(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, 1996
Sales at Retail or Wholesale
Electricity Gas
(KWH) (MMBTU-1000 BTU)
Cambridge Electric Light Company 1 477 088 316
Canal Electric Company 3 174 277 840
Commonwealth Gas Company 46 365 488
Commonwealth Electric Company 4 287 787 413
Total 8 939 153 569 46 365 488
Elimination (detailed below) 1 534 525 501 2 991
Consolidated 7 404 628 068 46 362 497
Detail of Intercompany Sales
Commonwealth Electric Company Sales -
To: Canal Electric Company 15 005 000
Commonwealth Gas Company 1 261 268
16 266 268
Commonwealth Gas Company Sales -
To: Cambridge Electric Light Company 2 991
Canal Electric Company Sales -
To: Cambridge Electric Light Company 342 729 596
Commonwealth Electric Company 1 175 529 637
1 518 259 233
Total Elimination 1 534 525 501 2 991
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, 1996
Purchases Outside State
or at State Line
Electricity Gas
(KWH) (MMBTU-1000 BTU)
Cambridge Electric Light Company 391 679 122 None
Canal Electric Company 269 888 000 None
Commonwealth Gas Company None None
Commonwealth Electric Company None None
Total 661 567 122
Elimination -
Consolidated 661 567 122 (A)
(A) Excluding power interchanged in the New England Power Pool (Pool) of
(75,689,309) 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, 1996 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-31-1996
<PERIOD-END> DEC-31-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 1,428,955
<TOTAL-OPERATING-REVENUES> 1,010,905
<NET-INCOME> 59,175
</TABLE>
