<PAGE>
FORM U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
For the Period
Beginning January 1, 1993 and Ending December 31, 1993
To The
U.S. SECURITIES AND EXCHANGE COMMISSION
Of
NEW ENGLAND POWER SERVICE COMPANY
A Subsidiary Service Company
Date of Incorporation: September 5, 1935
State or Sovereign Power under which Incorporated or Organized:
The Commonwealth of Massachusetts
Location of Principal Executive Offices of Reporting Company:
25 Research Drive
Westborough, MA 01582
Name, title, and address of officer to whom correspondence concerning this
report should be addressed:
H. W. McDowell, Controller
25 Research Drive
Westborough, MA 01582
Name of Principal Holding Company Whose Subsidiaries are served by
Reporting Company:
New England Electric System
SEC 1926 (6-82)
<PAGE>
INSTRUCTIONS FOR USE OF FORM U-13-60
1. Time of Filing Rule 94 provides that on or before the first day of
May in each calendar year, each mutual service company and each subsidiary
service company as to which the Commission shall have made a favorable
finding pursuant to Rule 88, and every service company whose application
for approval or declaration pursuant to Rule 88 is pending shall file with
the Commission an annual report on Form U-13-60 and in accordance with the
Instructions for that form.
2. Number of Copies Each annual report shall be filed in duplicate.
The company should prepare and retain at least one extra copy for itself in
case correspondence with reference to the report become necessary.
3. Period Covered by Report The first report filed by any company
shall cover the period from the date the Uniform System of Accounts was
required to be made effective as to that company under Rules 82 and 93 to
the end of that calendar year. Subsequent reports should cover a calendar
year.
4. Report Format Reports shall be submitted on the forms prepared by
the Commission. If the space provided on any sheet of such form is
inadequate, additional sheets may be inserted of the same size as a sheet
of the form or folded to such size.
5. Money Amounts Displayed All money amounts required to be shown in
financial statements may be expressed in whole dollars, in thousands of
dollars or in hundred thousands of dollars, as appropriate and subject to
provisions of Regulation S-X (Section 210.3-01(b)).
6. Deficits Displayed Deficits and other like entries shall be
indicated by the use of either brackets or a parenthesis with corresponding
reference in footnotes. (Regulation S-X, Section 210.3-01(c))
7. Major Amendments or Corrections Any company desiring to amend or
correct a major omission or error in a report after it has been filed with
the Commission shall submit an amended report including only those pages,
schedules, and entries that are to be amended or corrected. A cover letter
shall be submitted requesting the Commission to incorporate the amended
report changes and shall be signed by a duly authorized officer of the
company.
8. Definitions Definitions contained in Instruction 01-8 to the
Uniform System of Accounts for Mutual Service Companies and Subsidiary
Service Companies, Public Utility Holding Company Act of 1935, as amended
February 2, 1979 shall be applicable to words or terms used specifically
within this Form U-13-60.
9. Organization Chart The service company shall submit with each
annual report a copy of its current organization chart.
10. Methods of Allocation The service company shall submit with each
annual report a listing of the currently effective methods of allocation
being used by the service company and on file with the Securities and
Exchange Commission pursuant to the Public Utility Holding Company Act of
1935.
11. Annual Statement of Compensation for Use of Capital Billed The
service company shall submit with each annual report a copy of the annual
statement supplied to each associate company in support of the amount of
compensation for use of capital billed during the calendar year.
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Schedule or Page
Description of Schedules and Accounts Account No. Number
COMPARATIVE BALANCE SHEET Schedule I 4-5
Service company property Schedule II 6-7
Accumulated provision for depreciation and
amortization of service company property Schedule III 8
Investments Schedule IV 9
Accounts receivable from associate companies Schedule V 10
Fuel stock expenses undistributed Schedule VI 11
Stores expense undistributed Schedule VII 12
Miscellaneous current and accrued assets Schedule VIII 13
Miscellaneous deferred debits Schedule IX 14
Research, development, or demonstration
expenditures Schedule X 15
Proprietary capital Schedule XI 16
Long-term debt Schedule XII 17
Current and accrued liabilities Schedule XIII 18
Notes to financial statements Schedule XIV 19
COMPARATIVE INCOME STATEMENT Schedule XV 20
Analysis of billing - associate companies Account 457 21
Analysis of billing - nonassociate companies Account 458 22
Analysis of charges for service - associate
and nonassociate companies Schedule XVI 23
Schedule of expense by department or service
function Schedule XVII 24-26
Departmental analysis of salaries Account 920 27
Outside services employed Account 923 28-30
Employee pensions and benefits Account 926 31
General advertising expenses Account 930.1 32
Miscellaneous general expenses Account 930.2 33
Rents Account 931 34
Taxes other than income taxes Account 408 35
Donations Account 426.1 36
Other deductions Account 426.5 37
Notes to statement of income Schedule XVIII 38
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Page
Description of Reports or Statements Number
ORGANIZATION CHART 39
METHODS OF ALLOCATION 40
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED 41
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
SCHEDULE I
COMPARATIVE BALANCE SHEET
Give balance sheet of Company
as of December 31 of the current and prior year
Account Assets and Other Debits As of December 31
Current Prior
SERVICE COMPANY PROPERTY
101 Service company property (Schedule II) $27,229 $19,646
107 Construction work in progress (Schedule II)
------- -------
Total Property 27,229 19,646
------- -------
108 Less accumulated provision for depreciation
and amortization of service company
property property (Schedule III) 138 138
------- -------
Net Service Company Property 27,091 19,508
------- -------
INVESTMENTS
123 Investments in associate companies (Schedule IV)
124 Other Investments (Schedule IV) 4,102 3,620
------- -------
Total Investments 4,102 3,620
------- -------
CURRENT AND ACCRUED ASSETS
131 Cash 57 116
134 Special deposits 107 196
135 Working funds 73 72
136 Temporary cash investments (Schedule IV) 12,475 5,000
141 Notes receivable from associate companies
(Money Pool)
143 Accounts receivable 218 6,799
144 Accumulated provision of uncollectible accounts
146 Accounts receivable from associate
companies (Schedule V) 18,423 12,263
152 Fuel stock expenses undistributed (Schedule VI)
154 Materials and supplies 26 11
163 Stores expense undistributed (Schedule VII)
165 Prepayments 9,798 11,466
174 Miscellaneous current and accrued assets
(Schedule VIII)
------- -------
Total Current and Accrued Assets 41,177 35,923
------- -------
DEFERRED DEBITS
181 Unamortized debt expense
184 Clearing accounts
186 Miscellaneous deferred debits (Schedule IX) 3,817 26
188 Research, development, or demonstration
expenditures (Schedule X)
190 Accumulated deferred income taxes 5,891 2,126
------- -------
Total Deferred Debits 9,708 2,152
------- -------
TOTAL ASSETS AND OTHER DEBITS $82,078 $61,203
======= =======
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
SCHEDULE I
COMPARATIVE BALANCE SHEET
Account Liabilities and Proprietary Capital As of December 31
Current Prior
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI)
211 Miscellaneous paid-in-capital (Schedule XI) $ 1,350 $ 1,350
215 Appropriated retained earnings (Schedule XI)
216 Unappropriated retained earnings (Schedule XI) 158 162
------- -------
Total Proprietary Capital 1,508 1,512
------- -------
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII)
224 Other long-term debt (Schedule XII)
225 Unamortized premium on long-term debt
226 Unamortized discount on long-term debt - debit
------- -------
Total Long-Term Debt
------- -------
CURRENT AND ACCRUED LIABILITIES
231 Notes payable
232 Accounts payable 9,920 8,130
233 Notes payable to associate companies
(Schedule XIII)
234 Accounts payable to associate companies
(Schedule XIII) 273 137
236 Taxes accrued 139
237 Interest accrued
238 Dividends declared
241 Tax collections payable 98 27
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 18,162 5,441
------- -------
Total Current and Accrued Liabilities 28,592 13,735
------- -------
DEFERRED CREDITS
253 Other deferred credits 51,913 45,830
255 Accumulated deferred investment tax credits 65 126
------- -------
Total Deferred Credits 51,978 45,956
------- -------
282 ACCUMULATED DEFERRED INCOME TAXES
------- -------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $82,078 $61,203
======= =======
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
SCHEDULE II
SERVICE COMPANY PROPERTY
BALANCE AT RETIREMENTS BALANCE
BEGINNING OR OTHER (1) AT CLOSE
DESCRIPTION OF YEAR ADDITIONS SALES CHANGES OF YEAR
Account
301 Organization
303 Miscellaneous
Intangible
Plant
304 Land and Land
Rights
305 Structures and
Improvements
306 Leasehold
Improvements
307 Equipment (2) $19,605 $7,583 $27,188
308 Office
Furniture and
Equipment 37 37
309 Automobiles,
Other Vehicles
and Related
Garage
Equipment 4 4
310 Aircraft and
Airport
Equipment
311 Other Service
Company
Property (3)
------ ------ --- ----- -------
SUB-TOTAL 19,646 7,583 27,229
------ ------ --- ----- -------
107 Construction
Work in
Progress (4)
------ ----- --- ----- -------
TOTAL $19,646 $7,583 $27,229
====== ===== === ===== =======
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
SCHEDULE II - CONTINUED
(2) Subaccounts are required for each class of equipment owned. The
service company shall provide a listing by subaccount of equipment
additions during the year and the balance at the close of the year:
BALANCE
AT CLOSE
SUBACCOUNT DESCRIPTION ADDITIONS OF YEAR
Engineering Tools and Equipment None $ 11
Relay, Laboratory Testing Equipment None 25
Construction Equipment None 61
Capitalized lease for computer
information system $7,583 27,091
------- -------
TOTAL $7,583 $27,188
======= =======
(3) DESCRIBE OTHER SERVICE COMPANY PROPERTY:
None
(4) DESCRIBE CONSTRUCTION WORK IN PROGRESS:
None
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1992
(In Thousands)
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
ADDITIONS OTHER
BALANCE AT CHARGED CHANGES BALANCE
BEGINNING TO RETIRE- ADD AT CLOSE
DESCRIPTION OF YEAR ACCT 403 MENTS (DEDUCT)(1) OF YEAR
Account
301 Organization
303 Miscellaneous
Intangible
Plant
304 Land and Land
Rights
305 Structures and
Improvements
306 Leasehold
Improvements
307 Equipment $ 97 $ 97
308 Office
Furniture and
Equipment 37 37
309 Automobiles,
Other Vehicles
and Related
Garage
Equipment 4 4
310 Aircraft and
Airport
Equipment
311 Other Service
Company
Property
---- --- --- --- ----
TOTAL $138 $138
==== === === === ====
22) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
None
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
SCHEDULE IV
INVESTMENTS
INSTRUCTIONS: Complete the following schedule concerning investments.
Under Account 124 "Other Investments," state each investment
separately, with description, including, the name of issuing
company, number of shares or principal amount, etc.
Under Account 136, "Temporary Cash Investments," list each
investment separately.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
ACCOUNT 123 - INVESTMENT IN ASSOCIATE COMPANIES None None
------ ------
TOTAL None None
====== ======
ACCOUNT 124 - OTHER INVESTMENTS
General American Life Insurance Company - $2,013 $2,656
Net Cash Surrender Value
Confederation Life Insurance Company - 631 1,066
Net Cash Surrender Value
Pacific Mutual Life Insurance Company 976 380
Deferred Compensation - Life Insurance
Investments & Net Cash Surrender Value
------ ------
TOTAL $3,620 $4,102
====== ======
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS $5,000 $12,475
See Notes to Financial Statements
on page 19.
------ -------
TOTAL $5,000 $12,475
====== =======
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
SCHEDULE V
ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts
receivable from each associate company. Where the
service company has provided accommodation or convenience
payments for associate companies, a separate listing of
total payments for each associate company by subaccount
should be provided.
BALANCE AT BALANCE AT
BEGINNING CLOSE
OF YEAR OF YEAR
DESCRIPTION
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM
ASSOCIATE COMPANIES
New England Electric System $ (219) $ 141
Massachusetts Electric Company 4,103 6,612
New England Hydro-Trans. Electric Co., Inc. 188 176
New England Hydro Transmission Corp. 40 48
New England Power Company 5,687 7,993
New England Electric Transmission Corp. 32 41
Yankee Atomic Electric Company 118 140
Vermont Yankee Nuclear Power Corporation 128 3
Granite State Electric Company 309 462
Narragansett Energy Resources Company 7 2
The Narragansett Electric Company 1,748 2,693
New England Energy Incorporated 122 98
New England Energy Resources, Inc. - 14
------- -------
TOTAL $12,263 $18,423
======= =======
TOTAL
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS: PAYMENTS
New England Electric System $ 31
Massachusetts Electric Company 1,338
New England Hydro-Trans. Electric Co., Inc. 1
New England Hydro Transmission Corp. 3
New England Power Company 452
New England Electric Transmission Corp. 1
Yankee Atomic Electric Company 73
Granite State Electric Company 43
Narragansett Energy Resources Company -
The Narragansett Electric Company (21)
New England Energy Incorporated 2
------
TOTAL PAYMENTS $1,923
======
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
SCHEDULE VI
FUEL STOCK EXPENSES UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with
respect to fuel stock expenses during the year and
indicate amount attributable to each associate company.
Under the section headed "Summary" listed below give an
overall report of the fuel functions performed by the
service company.
DESCRIPTION LABOR EXPENSES TOTAL
ACCOUNT 152 - FUEL STOCK EXPENSES
UNDISTRIBUTED None None None
---- ---- ----
TOTAL None None None
==== ==== ====
SUMMARY:
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
SCHEDULE VII
STORES EXPENSE UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect
to stores expense during the year and indicate amount
attributable to each associate company.
DESCRIPTION LABOR EXPENSES TOTAL
ACCOUNT 163 - STORES EXPENSE
UNDISTRIBUTED None None None
---- ---- ----
TOTAL None None None
==== ==== ====
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
SCHEDULE VIII
MISCELLANEOUS CURRENT AND ACCRUED ASSETS
INSTRUCTIONS: Provide detail of items in this account. Items less than
$10,000 may be grouped, showing the number of items in each
group.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
ACCOUNT 174 - MISCELLANEOUS CURRENT AND
ACCRUED ASSETS None None
---- ----
TOTAL None None
==== ====
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
SCHEDULE IX
MISCELLANEOUS DEFERRED DEBITS
INSTRUCTIONS: Provide detail of items in this account. Items less than
$10,000 may be grouped by class, showing the number of items
in each class.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS
Unbilled Computer Information Systems Costs $ - $3,694
Unbilled Shared Microwave System Expenses (10) (35)
Unbilled Dispatching Expenses (REMVEC) (156) (128)
Unbilled Transportation Expenses (74) (6)
Unbilled Heavy Equipment Expenses 43 (35)
Unbilled Overheads 54 20
Unbilled Associated Company Costs 107 238
Unbilled RI Alarm Costs (8) (1)
Unbilled Providence Radio Replacement - 23
Unbilled Sayles Hill Tower Replacement - 8
Unbilled Salem Harbor Radio Additions 22 23
Unbilled Brayton Pt Microwave Improvements Costs (1) (1)
Miscellaneous Expenses (8 items) 49 17
----- ------
TOTAL $ 26 $3,817
===== ======
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
SCHEDULE X
RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
INSTRUCTIONS: Provide a description of each material research,
development, or demonstration project which incurred costs
by the service corporation during the year.
DESCRIPTION AMOUNT
ACCOUNT 188 - RESEARCH, DEVELOPMENT, OR
DEMONSTRATION EXPENDITURES None
----
TOTAL None
====
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE XI
PROPRIETARY CAPITAL
OUTSTANDING
NUMBER OF PAR OR STATED CLOSE OF PERIOD
ACCOUNT SHARES VALUE NO. OF TOTAL
NUMBER CLASS OF STOCK AUTHORIZED PER SHARE SHARES AMOUNT
201 COMMON STOCK ISSUED 4,000 $25 3 $75
INSTRUCTIONS: Classify amounts in each account with a brief explanation,
disclosing the general nature of transactions which give rise
to the reported amounts.
DESCRIPTION AMOUNT
ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL $1,350,000
Capital contribution from New England
Electric System,the holding company,
as authorized by SEC Release Number
35-21354 dated December 21, 1979.
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS None
----------
TOTAL $1,350,000
==========
INSTRUCTIONS: Give particulars concerning net income or (loss) during the
year, distinguishing between compensation for the use of
capital owed or net loss remaining from servicing
non-associates per the General Instructions of the Uniform
Systems of Accounts. For dividends paid during the year in
cash or otherwise, provide rate percentage, amount of
dividend, date declared and date paid.
BALANCE AT NET INCOME BALANCE AT
BEGINNING OR DIVIDENDS CLOSE
DESCRIPTION OF YEAR (LOSS) PAID OF YEAR
ACCOUNT 216 -
UNAPPROPRIATED
RETAINED EARNINGS $162,009 $157,959 (A) $162,009 (B) $157,959
-------- -------- -------- --------
TOTAL $162,009 $157,959 $162,009 $157,959
======== ======== ======== ========
(A) Return on equity of 11.7% as authorized by SEC File #70-6353 amendment
No. 9 dated July 27, 1992.
(B) DATE DATE NO. OF TOTAL
DECLARED PAID SHARES DIVIDEND
2/17/93 4/01/93 3 $162,009
<PAGE>
<TABLE> ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
SCHEDULE XII
LONG-TERM DEBT
INSTRUCTIONS: Advances from associate companies should be reported separately for advances on notes, and
advances on open account. Names of associate companies from which advances were received
shall be shown under the class and series of obligation column. For Account 224 - Other
long-term debt provide the name of creditor company or organization, terms of the obligation,
date of maturity, interest rate, and the amount authorized and outstanding.
<CAPTION>
TERMS OF OBLIG DATE BALANCE AT BALANCE AT
NAME OF CLASS & SERIES OF INTEREST AMOUNT BEGINNING DEDUCTIONS CLOSE
CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR ADDITIONS (1) OF YEAR
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ACCOUNT 223 -
ADVANCES FROM
ASSOCIATE
COMPANIES: None None
ACCOUNT 224 -
OTHER LONG-TERM
DEBT: None None
---- ---- ---- ---- ----
TOTAL None None
==== ==== ==== ==== ====
(1) Give an explanation of deductions:
None
</TABLE>
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
SCHEDULE XIII
CURRENT AND ACCRUED LIABILITIES
INSTRUCTIONS: Provide balance of notes and accounts payable to each
associate company. Give description and amount of
miscellaneous current and accrued liabilities. Items
less than $10,000 may be grouped, showing the number of
items in each group.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE
COMPANIES $ $
See Notes to Financial Statements
on Page 19.
------ -------
TOTAL $ $
====== =======
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE
COMPANIES
Massachusetts Electric Company $ 87 $ 162
New England Power Company 39 94
Granite State Electric Company 2 2
The Narragansett Electric Company 9 13
New England Electric System - 2
------- ------
TOTAL $ 137 $ 273
====== =======
ACCOUNT 242 - MISCELLANEOUS CURRENT AND
ACCRUED LIABILITIES
Accrued Pension Costs $(2,084) $5,303
Accrued Severance Costs - 371
Group Insurance 111 41
NEES Goals 2,828 3,575
Commuter Use of Company Vehicles (11) (18)
Workman's Compensation Insurance 40 94
Municipal Taxes 15 -
Property Under Capital Lease 4,542 8,701
Healthcare Costs - 103
Other - (8)
------- ------
TOTAL $ 5,441 $18,162
====== =======
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes regarding
the financial statements or any account thereof. Furnish
particulars as to any significant contingent assets or
liabilities existing at the end of the year. Notes relating
to financial statements shown elsewhere in this report may
be indicated here by reference.
During 1981, certain subsidiaries of New England Electric System
established a money pool to more effectively utilize cash resources of
subsidiaries and to reduce outside short-term borrowings. The SEC
authorized the establishment of the money pool in Release No. 35-21987. In
1983, the terms were amended in Release No. 35-22900 to allow New England
Electric System to invest in the money pool. In 1986, the terms were again
amended in Release No. 35-24232 to allow New England Energy Incorporated
and NEES Energy, Incorporated to invest in the money pool and New England
Electric Transmission Corporation to invest in and borrow from the money
pool. In 1988, the terms were again amended in Release No. 35-24733 to
allow New England Hydro-Transmission Electric Company Incorporated and New
England Hydro-Transmission Corporation to invest in the money pool. In
1992, the terms were again amended in Release No. 35-25483 to remove NEES
Energy, Incorporated from participation in the money pool, to allow New
England Hydro-Transmission Electric Company and New England Hydro-
Transmission Corporation to borrow from the money pool, to allow New
England Hydro Finance Company, Incorporated and Narragansett Energy
Resources Company to invest in the money pool and to divide the borrowing
members of the money pool into Group I and Group II, consisting of wholly
owned subsidiaries and non-wholly owned subsidiaries, respectively, with
different borrowing priorities.
Short-term borrowing needs of subsidiaries are met first with available
funds of other subsidiaries. Borrowing companies pay interest at a rate
designed to approximate the cost of outside short-term borrowings.
Companies who invest in the pool share the interest earned on a basis
proportionate to their average monthly investment in the money pool. Funds
may be withdrawn from or repaid to the pool at any time without prior
notice.
New England Power Service Company was designated to administer the pool
as agent for the member companies. The Company has classified pool
transactions of the member companies on a net basis in the current and
prior year balance sheets.
At December 31, 1993 the detail of this pool was as follows:
Investments in the Pool:
New England Electric System $ 1,900,000
New England Hydro-Trans. Electric Co., Inc. 13,550,000
New England Hydro Transmission Corp. 2,300,000
New England Energy Incorporated 1,975,000
New England Power Service Company 12,475,000
Narragansett Energy Resources Company 5,100,000 $37,300,000
----------- ===========
Borrowings from the Pool:
Massachusetts Electric Company $8,350,000
New England Electric Transmission 600,000
Granite State Electric Company 300,000
The Narragansett Electric Company 19,725,000
New England Power Company 8,325,000 $37,300,000
----------- ===========
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
SCHEDULE XV
STATEMENT OF INCOME
ACCOUNT DESCRIPTION CURRENT PRIOR
YEAR YEAR
INCOME
457 Services rendered to associate companies $198,268 $164,939
458 Services rendered to nonassociate companies 2,913 3,452
421 Miscellaneous income or loss
-------- --------
TOTAL INCOME 201,181 168,391
-------- --------
EXPENSE
920 Salaries and wages 89,002 95,406
921 Office supplies and expenses 30,312 25,318
922 Administrative expense transferred - credit
923 Outside services employed 4,097 1,863
924 Property insurance 92 109
925 Injuries and damages 2,397 3,014
926 Employee pensions and benefits 43,998 21,122
928 Regulatory commission expense 91 194
930.1 General advertising expenses
930.2 Miscellaneous general expenses 4 3
931 Rents 18,434 10,394
932 Maintenance of structures and equipment 3,403 2,358
403 Depreciation and amortization expense
408 Taxes other than income taxes 7,658 7,969
409 Income taxes 3,760 (6,302)
410 Provision for deferred income taxes 1,015 7,183
411 Provision for deferred income taxes - credit (4,780) (1,259)
411.5 Investment tax credit (61) (101)
426.1 Donations 156 99
426.5 Other deductions
427 Interest on long-term debt
430 Interest on debt to associate companies (159) (49)
431 Other interest expense 1,604 908
-------- --------
TOTAL EXPENSE 201,023 168,229
-------- --------
NET INCOME OR (LOSS) $ 158 $ 162
======== ========
<PAGE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
<CAPTION>
DIRECT INDIRECT COMPENSATION TOTAL
COSTS COSTS FOR USE AMOUNT
NAME OF ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED
457-1 457-2 457-3
<S> <C> <C> <C> <C>
New England Electric System $ 1,807 $ 170 $ 2 $ 1,979
Massachusetts Electric Company 52,422 9,050 42 61,514
New England Hydro-Transmission
Electric Co., Inc. 1,755 251 1 2,007
New England Hydro Transmission Corp. 377 61 438
New England Power Company 77,495 18,715 82 96,292
New England Electric Transmission
Corp. 478 43 521
Yankee Atomic Electric Company 534 56 590
Vermont Yankee Nuclear Power Corp. 6 2 8
Granite State Electric Company 3,124 545 3 3,672
Narragansett Energy Resources Company 47 10 57
The Narragansett Electric Company 25,348 4,763 22 30,133
New England Energy Incorporated 908 117 1 1,026
New England Energy Resources, Inc. 26 5 31
-------- ------- ---- --------
TOTAL $164,327 $33,788 $153 $198,268
======== ======= ==== ========
</TABLE>
<PAGE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
<CAPTION>
DIRECT INDIRECT COMPENSATION EXCESS TOTAL
COST COST FOR USE TOTAL OR AMOUNT
NAME OF NONASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL COST DEFICIENCY BILLED
458-1 458-2 458-3 458-4
<S> <C> <C> <C> <C> <C> <C>
1) Mass Water Resource Authority $ 11 $ 4 $ 15 $5 $ 20
2) REMVEC Billings 2,837 2,837 2,837
3) Enron Milford 32 8 40 40
4) Refuse Energy Systems 5 2 7 7
5) New Hampshire Yankee (1) (1)
(1)
6) NH Electric Cooperative 2 2 2
7) Peabody Municipal Lighting Plant 1 1 1
8) N Attleboro Municipal Lighting Plant 1 1 1
9) Pontook Hydroelectric 1 1 2 2
10) Hudson Light and Power 2 1 3 3
11) Algonquin Gas Transm. Co. 1 1 1
------ ---- -- ------ --- ------
TOTAL $2,891 $ 17 $2,908 $ 5 $2,913
====== ==== == ====== === ======
INSTRUCTION: Provide a brief description of the services rendered to each nonassociated company:
1) Meter installation 9) Meter replacement
2) Centralized Eastern N.E. Dispatching System 10) Meter testing/programming
3) Meter installation/testing 11) Construct access road
4) Meter installation
5) Electrical equipment maintenance, instrumentation and
control work, mechanical work and siren pole removal
6) Meter installation
7) Meter testing
8) Energize meter
</TABLE>
<PAGE>
<TABLE> ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE ASSOCIATE AND NONASSOCIATE COMPANIES
<CAPTION>
ASSOCIATE COMPANY CHARGES NONASSOCIATE COMPANY CHARGES TOTAL CHARGES FOR SERVICE
------------------------- ---------------------------- -------------------------
DIRECT INDIRECT DIRECT INDIRECT DIRECT INDIRECT
COST COST TOTAL COST COST TOTAL COST COST TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
920 Salaries and Wages $ 75,117 $13,861 $ 88,978 $ 24 $ 24 $ 75,141 $13,861 $ 89,002
921 Office Supplies and Expenses 25,914 1,531 27,445 2,855 $12 2,867 28,769 1,543 30,312
922 Administrative Expense
Transferred - Credit
923 Outside Services Employed 3,711 386 4,097 3,711 386 4,097
924 Property Insurance 3 89 92 3 89 92
925 Injuries and Damages 213 2,183 2,396 1 1 213 2,184 2,397
926 Employee Pensions and Benefits 37,118 6,869 43,987 9 2 11 37,127 6,871 43,998
928 Regulatory Commission Expense 87 4 91 87 4 91
930.1 General Advertising Expenses
930.2 Miscellaneous General Expenses 4 4 4 4
931 Rents 14,826 3,607 18,433 1 1 14,826 3,608 18,434
932 Maintenance of Structures
and Equipment 187 3,216 3,403 187 3,216 3,403
403 Depreciation and Amortization
Expense
408 Taxes Other Than Income Taxes 6,462 1,192 7,654 3 1 4 6,465 1,193 7,658
409 Income Taxes 3,755 3,755 5 5 3,760 3,760
410 Provision for Deferred Income
Taxes 1,014 1,014 1 1 1,015 1,015
411 Provision for Deferred Income
Taxes - Credit (4,774) (4,774) (6) (6) (4,780) (4,780)
411.5 Investment Tax Credit (61) (61) (61) (61)
426.1 Donations 2 154 156 2 154 156
426.5 Other Deductions
427 Interest on Long-Term Debt
431 Other Interest Expense 687 917 1,604 687 917 1,604
-------- ------- -------- ------ ---- ------ -------- ------- --------
TOTAL EXPENSES $164,327 $33,947 198,274 $2,891 $17 2,908 $167,218 $33,964 201,182
======== ======= -------- ====== ==== ------ ======== ======= --------
Compensation for use of
Equity Capital 153 5 158
-------- ------ --------
430 Interest on Debt to
Associate Companies (159) - (159)
-------- ------ --------
TOTAL COST OF SERVICE $198,268 $2,913 $201,181
======== ====== ========
INSTRUCTION: Total cost of service will equal for associate and nonassociate companies the total amount billed under
their separate analysis of billing schedules.
</TABLE>
<PAGE>
<TABLE> ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
TOTAL
DESCRIPTION OF ITEMS AMOUNT OVERHEAD 01 02 03 04 05
------ -------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
920 Salaries and wages $ 89,002 $4,705 $434 $445 $10,547 $1,578
921 Office supplies and expenses 30,312 1,453 160 578 2,475 780
922 Administrative expense transferred - credit
923 Outside services employed 4,097 137 47 4
924 Property insurance 92
925 Injuries and damages 2,397 127 1
926 Employee pensions and benefits 43,998 (21) 37
928 Regulatory commission expense 91 1
930.1 General advertising expenses
930.2 Miscellaneous general expense 4
931 Rents 18,434 10 (988) 1,548
932 Maintenance of structures and equipment 3,403 179 2 1
403 Depreciation and amortization expense
408 Taxes other than income taxes 7,658
409 Income taxes 3,760 $3,760
410 Provision for deferred income taxes 1,015 1,015
411 Provision for deferred income taxes - credit (4,780) (4,780)
411.5 Investment tax credit (61) (61)
426.1 Donations 156 (1)
426.5 Other deductions
427 Interest on long-term debt
430 Interest on debt to associate companies (159)
431 Other interest expense 1,604
-------- ------- ------ ---- ------ ------- ------
TOTAL EXPENSES $201,023 $ (66) $6,410 $641 $1,203 $12,078 $3,907
======== ======= ====== ==== ====== ======= ======
INSTRUCTION: Indicate each department or service function. (see Instruction 01-3 General Structure of
Accounting System: Uniform System of Accounts)
</TABLE>
<PAGE>
<TABLE> ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
SCHEDULE XVII - CONTINUED
<CAPTION>
ACCOUNT
NUMBER 06 07 08 09 10 11 12 13 14 15 16
- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
920 $1,883 $190 $ 2,853 $12,683 $3,375 $775 $844 $28,778 $ 1,704 $ 871 $ 9,075
921 831 59 1,850 12,046 1,547 93 138 4,176 385 177 1,780
922
923 7 111 1,438 1,642 14 3 118 26
924 92
925 37 80 2,180
926 4 35,571 26 28 2 20 6,850 10 1,440
928 28 3 3 7
930.1
930.2 3 1
931 1 8 16,229 6 643 3 2
932 144 9 2,171 301 86 451
403
408 60 1 7,597
409
410
411
411.5
426.1 113 44
426.5
427
430
(159)
431 11 1,593
------ ---- ------- ------- ------ ---- ------ ------- ------- ------ -------
$2,870 $360 $41,845 $44,797 $4,970 $898 $1,025 $34,179 $11,320 $1,058 $21,849
====== ==== ======= ======= ====== ==== ====== ======= ======= ====== =======
</TABLE>
<PAGE>
<TABLE> ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
SCHEDULE XVII - CONTINUED
<CAPTION>
ACCOUNT
NUMBER 17 18 19 20 21
- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
920 $1,012 $ 472 $1,132 $2,398 $3,248
921 185 30 222 923 424
922
923 89 9 452
924
925 1 (29)
926 3 4 24
928 1 48
930.1
930.2
931 970 2
932 54 5
403
408
409
410
411
411.5
426.1
426.5
427
430
431
------ ------ ------ ------ ------ ------ ---- ------ ------ ------ ------
$1,197 $ 645 $1,367 $4,301 $4,169
====== ====== ====== ====== ====== ====== ==== ====== ====== ====== ======
</TABLE>
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
DEPARTMENTAL SALARY EXPENSE
NAME OF DEPARTMENT INCLUDED IN AMOUNTS BILLED TO NUMBER
------------------------------- PERSONNEL
Indicate each dept. or TOTAL PARENT OTHER NON END OF
service function AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR
01 Management $ 4,705 $410 $ 4,295 $ 47
02 Research &
Development 434 3 431 6
03 Customer Service 445 445 14
04 Engineering 10,547 3 10,542 2 160
05 REMVEC 1,578 1,578 24
06 Purchase Material
Management 1,883 19 1,864 41
07 Labor Relations 190 190 3
08 Human Resources 2,853 9 2,844 32
09 Information Services 12,683 5 12,662 16 191
10 Demand Side Management 3,375 10 3,365 60
11 Rates 775 2 773 13
12 Environmental 844 6 838 13
13 Construction 28,778 5 28,768 5 484
14 Treasury/Financial 1,704 45 1,659 21
15 Financial Forecasting 871 871 13
16 Corporate Accounting 9,075 36 9,039 186
17 Fuel Procurement 1,012 1,012 16
18 Internal Audit 472 472 12
19 Planning & Power
Supply 1,132 8 1,124 18
20 Transmission
Distribution
Supervision 2,398 2,397 1 125
21 Corporate Legal 3,248 68 3,180 47
------- ---- ------- ---- -----
TOTAL $89,002 $629 $88,349 $ 24 1,526
======= ==== ======= ==== =====
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed.
If the aggregate amounts paid to any one payee and included
within one subaccount is less than $25,000, only the aggregate
number and amount of all such payments included within the
subaccount need be shown. Provide a subtotal for each type of
service.
RELATIONSHIP
"A"- ASSOCIATE
FROM WHOM PURCHASED ADDRESS "NA"- NON ASSOCIATE AMOUNT
AUDITING SERVICES
Coopers & Lybrand 1 Post Office Square NA $ 141
Boston, MA 02109
------
LEGAL SERVICES
Downs, Rachlin & Martin 100 Dorset Street NA 61
Burlington, VT 05401-6293
Joyce & Joyce 22 Beacon Street NA 45
Boston, MA 02108
Bowditch & Dewey 311 Main Street NA 46
Worcester, MA 01608
Swidler & Berlin 300 K Street NW NA 109
Worcester, MA 01608
Palmer & Dodge One Beacon Street NA 45
Boston, MA 02108
Glenn Dawson 101 Tremont Street NA 75
Boston, MA 02108
Miller & Chevalier 655 Fifteenth Street NW NA 52
Metropolitan Square
Washington, DC 20005
Thirteen Vendors NA 69
(Each Under $25,000) ------
TOTAL LEGAL SERVICES 502
------
OTHER SERVICES
The Ayco Corporation One Wall Street NA 68
Albany, NY 12205
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
OUTSIDE SERVICES EMPLOYED - CONTINUED
ACCOUNT 923
RELATIONSHIP
"A"- ASSOCIATE
FROM WHOM PURCHASED ADDRESS "NA"- NON ASSOCIATE AMOUNT
Reliance Systems 40 Washington Street NA 76
Wellesley Hills, MA 02181
Paul L. Joskow 7 Chilton Street NA 30
Brookline, MA 02146
George Sasdi 24 Hawthorne Avenue NA 47
Newton, MA 02166
MSB Energy Associates 7507 Hubbard Avenue NA 65
Suite 200
Middleton, WI 53562
Texas Instruments P.O. Box 10013 NA 1,116
Atlanta, GA 30384
Mercer Management P.O. Box 3800-28 NA 587
Boston, MA 02241
New Boston Systems 146 Bowdoin Street NA 75
Boston, MA 02108
William Mercer, Inc. P.O. Box 6010 NA 95
Boston, MA 02212
Joseph Chaisson Rd #1, Box 285 NA 31
Allen Point Road
South Harpswell, ME 04079
Lee Hecht Harrison 4310 Prudential Tower NA 520
Boston, MA 02199
Geraghty & Miller, Inc. P.O. Box 19263 NA 66
Newark, NJ 07195
Cambridge Reporting 955 Mass Avenue NA 34
Cambridge, MA 02139
Clean Air Capitol Market 1250 24th Street NW NA 56
Suite 300
Washington, DC 20037
Command Systems, Inc. One Corporate Center NA 89
15th Floor
Hartford, CT 06103
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
OUTSIDE SERVICES EMPLOYED - CONTINUED
ACCOUNT 923
RELATIONSHIP
"A"- ASSOCIATE
FROM WHOM PURCHASED ADDRESS "NA"- NON ASSOCIATE AMOUNT
Towers, Perrin, Forster P.O. Box 8500, S-6110 NA $ 120
and Crosby Philadelphia, PA 19178
Keane, Inc. P.O. Box 4201 NA 191
Boston, MA 02211
Thirty-seven Vendors NA 188
(Each Under $25,000)
------
TOTAL OTHER SERVICES 3,454
------
GRAND TOTAL $4,097
======
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
EMPLOYEE PENSIONS AND BENEFITS
ACCOUNT 926
INSTRUCTIONS: Provide a listing of each pension plan and benefit program
provided by the service company. Such listing should be
limited to $25,000.
DESCRIPTION AMOUNT
Pensions $ 9,385
Early Retirement Program 11,343
Postretirement Benefits Other than Pensions 13,205
Group Insurance Premiums 628
Executive Life Insurance (1,252)
Medical Insurance Premiums 6,521
Employee Publications 241
Employee Health Program 250
Employee Educational Aid 216
Employee Thrift Plan 2,381
Employee Occupational Health Service 215
Employee Benefits Administration 579
Cafeteria 214
Miscellaneous (Each Under $25,000) 72
-------
TOTAL $43,998
=======
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
GENERAL ADVERTISING EXPENSES
ACCOUNT 930.1
INSTRUCTIONS: Provide a listing of the amount included in Account 930.1,
"General Advertising Expenses", classifying the items according
to the nature of the advertising and as defined in the account
definition. If a particular class includes an amount in excess
of $3,000 applicable to a single payee, show separately the
name of the payee and the aggregate amount applicable thereto.
DESCRIPTION NAME OF PAYEE AMOUNT
None
----
TOTAL None
====
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
MISCELLANEOUS GENERAL EXPENSES
ACCOUNT 930.2
INSTRUCTIONS: Provide a listing of the amount included in Account 930.2,
"Miscellaneous General Expenses", classifying such expenses
according to their nature. Payments and expenses permitted by
Sections 321(b)(2) of the Federal Election Campaign Act,
as amended by Public Law 94-283 in 1976 (2 U.S.C. Section
441(b)(2)) shall be separately classified.
DESCRIPTION AMOUNT
Membership Dues - Company $ 4
---
TOTAL $ 4
===
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
RENTS
ACCOUNT 931
INSTRUCTIONS: Provide a listing of the amount included in Account 931,
"Rents", classifying such expenses by major groupings of
property, as defined in the account definition of the Uniform
System of Accounts.
TYPE OF PROPERTY AMOUNT
Building Rents $ 1,645
Office Equipment 870
Microwave and Telemetering Equipment 704
Computers 7,233
Word Processing Equipment 33
Transportation Equipment 966
Capital Lease - Computer Information Systems 6,983
-------
TOTAL $18,434
=======
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
TAXES OTHER THAN INCOME TAXES
ACCOUNT 408
INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other Than Income
Taxes". Separate the analysis into two groups: (1) other than
U.S. Government taxes, and (2) U.S. Government taxes. Specify
each of the various kinds of taxes and show the amounts
thereof. Provide a subtotal for each class of tax.
KIND OF TAX AMOUNT
1) OTHER THAN U.S. GOVERNMENT TAXES
State Unemployment $1,405
Municipal - Motor Vehicle Excise 47
Use & Fuel - Motor Vehicle Excise 8
------
SUBTOTAL 1,460
------
2) U.S. GOVERNMENT TAXES
Federal Unemployment 74
Federal Insurance Contribution Act - Company 6,119
Miscellaneous 5
------
SUBTOTAL 6,198
------
TOTAL $7,658
======
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
DONATIONS
ACCOUNT 426.1
INSTRUCTIONS: Provide a listing of the amount included in Account 426.1,
"Donations", classifying such expenses by its purpose. The
aggregate number and amount of all items of less than $3,000
may be shown in lieu of details.
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
W.G.B.H. Matching Gifts Program $ 9
Worcester Polytechnic
Institute Matching Gifts Program 5
United Way Matching Gifts Program 35
Woods Hole Oceanographic
Institute Matching Gifts Program 6
St. John's Seminary Matching Gifts Program 5
Miscellaneous (406 Items) Matching Gifts Program
(Each Vendor Under $3,000) for colleges, universities,
and other charitable
organizations 96
----
TOTAL $156
====
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
(In Thousands)
OTHER DEDUCTIONS
ACCOUNT 426.5
INSTRUCTIONS: Provide a listing of the amount included in Account
426.5, "Other Deductions", classifying such expenses
according to their nature.
DESCRIPTION NAME OF PAYEE AMOUNT
None
----
TOTAL None
====
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
SCHEDULE XVIII
NOTES TO STATEMENT OF INCOME
INSTRUCTIONS: The space below is provided for important notes regarding
the statement of income or any account thereof. Furnish
particulars as to any significant increase in services
rendered or expenses incurred during the year. Notes
relating to financial statements shown elsewhere in this
report may be indicated here by reference.
No Significant Notes
<PAGE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
ORGANIZATION CHART
For the Year Ended December 31, 1993
<CAPTION>
Chairman NEES
! (01)
!
President & Chief Executive
Officer NEES
! (01)
!
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
! ! ! !
Vice Sr. Vice Sr. Vice Vice
President President President President
NEES Finance - NEES NEES NEES
President - NEPSCo
! (01) ! (01) ! (01) ! (01)
! ! ! !
-Customer Service -Human Resources -Environmental -Research &
! (03) ! (08) ! (12) Development
! ! ! ! (02)
-Engineering -Information Services -Corporate Legal !
! (04) ! (09) ! (21) -Engineering
! ! ! (04)
-Purchase Material -Rates !
Management ! (11) -REMVEC
! (06) ! ! (05)
! -Treasury/Financial !
-Demand Side ! (14) -Labor Relations
Management ! ! (07)
! (10) -Financial Forecasting !
! ! (15) -Environmental
-Transmission ! ! (12)
Distribution -Corporate Accounting !
Supervision ! (16) -Construction
(20) ! ! (13)
-Internal Audit !
(18) -Fuel Procurement
! (17)
!
-Planning &
Power Supply
(19)
The numbers that appear with Department are a cross reference to Page 27.
</TABLE>
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
METHODS OF ALLOCATION
Inventory, less fuel
Microwave air line circuit miles
Number of employees
Number of customers
Number of meters in service
Adjusted gross revenue
Number of purchase orders
Archive space occupied
Number of budget reports
Budgeted transmission/distribution
operation and maintenance expenditures
Budgeted transmission/distribution
capital expenditures
Number of aerial devices
Average of number of purchase orders issued,
number of checks processed and inventory balances
Total billings to associated companies for
services rendered (excluding convenience
payments)
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
As authorized by Commission's File No. 70-6353 and amendment No. 9
dated July 27, 1992, New England Power Service Company included in its
service charge to customers for the year 1993 the amount of $157,959.00.
The following is a schedule indicating a breakdown of this billing:
Associated Non-Associated
Companies Companies Total
---------- -------------- -------
Total Compensation $157,894 $ 65 $157,959
Excess of Revenues Billed
Over Costs Incurred to
Non-Associated Companies (5,106) 5,106 0
-------- ------ --------
Compensation for Use of
Equity Capital Billed $152,788 $5,171 $157,959
======== ====== ========
The Company is authorized by this order and amendment thereto to use a rate
of return on Common Equity of New England Power Company as authorized in FERC
proceedings. The calculation of the authorized amount is as follows:
Common Equity:
Capital Contribution from NEES $1,350,000
Common Shares 75
----------
$1,350,075
==========
Amount of Equity return
January - December @ 11.7% $ 157,959
==========
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1993
SIGNATURE CLAUSE
Pursuant to the requirements of the Public Utility Holding Company
Act of 1935 and the rules and regulations of the Securities and
Exchange Commission issued thereunder, the undersigned company has
duly caused this report to be signed on its behalf by the
undersigned officer thereunto duly authorized.
New England Power Service Company
---------------------------------
(Name of Reporting Company)
s/ H. W. McDowell
By:
-------------------------------
(Signature of Signing Officer)
H. W. McDowell, Controller
-------------------------------------------
(Printed Name and Title of Signing Officer)
