<PAGE>
FORM U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
For the Period
Beginning January 1, 1994 and Ending December 31, 1994
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 28-31
Employee pensions and benefits Account 926 32
General advertising expenses Account 930.1 33
Miscellaneous general expenses Account 930.2 34
Rents Account 931 35
Taxes other than income taxes Account 408 36
Donations Account 426.1 37
Other deductions Account 426.5 38
Notes to statement of income Schedule XVIII 39
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Page
Description of Reports or Statements Number
ORGANIZATION CHART 40
METHODS OF ALLOCATION 41
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED 42
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(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) $29,103 $27,229
107 Construction work in progress (Schedule II)
----------- -----------
Total Property 29,103 27,229
----------- -----------
108 Less accumulated provision for depreciation
and amortization of service
company property (Schedule III) 138 138
----------- -----------
Net Service Company Property 28,965 27,091
----------- -----------
INVESTMENTS
123 Investments in associate companies (Schedule IV)
124 &
128 Other Investments (Schedule IV) 15,093 4,102
---------- ----------
Total Investments 15,093 4,102
---------- ----------
CURRENT AND ACCRUED ASSETS
131 Cash 347 57
134 Special deposits 107 107
135 Working funds 89 73
136 Temporary cash investments (Schedule IV) 0 12,475
141 Notes receivable from associate companies
(Money Pool)
143 Accounts receivable 2,963 218
144 Accumulated provision of uncollectible accounts
146 Accounts receivable from associate companies
(Schedule V) 31,995 18,423
152 Fuel stock expenses undistributed (Schedule VI)
154 Materials and supplies 7 26
163 Stores expense undistributed (Schedule VII)
165 Prepayments 6,384 9,798
174 Miscellaneous current and accrued assets
(Schedule VIII)
---------- ----------
Total Current and Accrued Assets 41,892 41,177
---------- ----------
DEFERRED DEBITS
181 Unamortized debt expense
184 Clearing accounts
186 Miscellaneous deferred debits (Schedule IX) 2,479 3,817
188 Research, development, or demonstration
expenditures (Schedule X)
190 Accumulated deferred income taxes 4,348 5,891
---------- ----------
Total Deferred Debits 6,827 9,708
---------- ----------
TOTAL ASSETS AND OTHER DEBITS $92,777 $82,078
==== ====
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(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) 158 158
--------- ---------
Total Proprietary Capital 1,508 1,508
--------- ---------
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 15,318 9,920
233 Notes payable to associate companies
(Schedule XIII) 4,950
234 Accounts payable to associate companies
(Schedule XIII) 971 273
236 Taxes accrued 944 139
237 Interest accrued 16
238 Dividends declared
241 Tax collections payable 273 98
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 15,672 18,162
--------- ---------
Total Current and Accrued Liabilities 38,144 28,592
--------- ---------
DEFERRED CREDITS
253 Other deferred credits 53,099 51,913
255 Accumulated deferred investment tax credits 26 65
--------- ---------
Total Deferred Credits 53,125 51,978
--------- ---------
282 ACCUMULATED DEFERRED INCOME TAXES
--------- ---------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $92,777 $82,078
==== ====
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(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) $27,188 $1,874 $29,062
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 27,229 1,874 29,103
-------- -------- ---- ----- ---------
107 Construction
Work in
Progress (4)
--------- -------- ----- -------- ---------
TOTAL $27,229 $1,874 $29,103
==== === == === ====
<PAGE>
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(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 $1,874 28,965
----------- -----------
TOTAL $1,874 $29,062
==== ====
(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, 1994
(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, 1994
(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 & 128 - OTHER INVESTMENTS
Supplemental Retirement Plan Trust Fund $ - $10,000
General American Life Insurance Company - 2,656 3,134
Net Cash Surrender Value
Confederation Life Insurance Company - 1,066 1,623
Net Cash Surrender Value
Aurora National Life Insurance Company
Net Cash Surrender Value - 272
Pacific Mutual Life Insurance Company 380 64
Deferred Compensation - Life Insurance
Investments & Net Cash Surrender Value
-------- ----------
TOTAL $4,102 $15,093
=== ====
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS $12,475 $ 0
See Notes to Financial Statements
on page 19.
---------- -------
TOTAL $12,475 $ 0
==== ===
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(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 $ 141 $ 196
Massachusetts Electric Company 6,612 10,085
New England Hydro-Trans. Electric Co., Inc. 176 395
New England Hydro Transmission Corp. 48 148
New England Power Company 7,993 15,745
New England Electric Transmission Corp. 41 104
Yankee Atomic Electric Company 140 42
Vermont Yankee Nuclear Power Corporation 3 0
Granite State Electric Company 462 660
Narragansett Energy Resources Company 2 8
The Narragansett Electric Company 2,693 4,177
New England Energy Incorporated 98 233
New England Energy Resources, Inc. 14 202
--------- ---------
TOTAL $18,423 $31,995
==== ====
TOTAL
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS: PAYMENTS
New England Electric System $ 21
Massachusetts Electric Company 2,000
New England Hydro-Trans. Electric Co., Inc. 133
New England Hydro Transmission Corp. 9
New England Power Company 1,582
New England Electric Transmission Corp. -
Yankee Atomic Electric Company 65
Granite State Electric Company 80
Narragansett Energy Resources Company -
The Narragansett Electric Company 905
New England Energy Incorporated 18
--------
TOTAL PAYMENTS $4,813
===
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(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, 1994
(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, 1994
(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, 1994
(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 $1,213
Unbilled Microwave Improvements - 624
Deferred Radio Expenses - 377
Employee House Purchased - 100
Deferred Renovation Expenses - 357
Unbilled Shared Microwave System Expenses (35) (53)
Unbilled Dispatching Expenses (REMVEC) (128) (77)
Unbilled Heavy Equipment Expenses (35) 50
Unbilled Overheads 20 (123)
Unbilled Associated Company Costs 238 -
Unbilled Providence Radio Replacement 23 -
Unbilled Salem Harbor Radio Additions 23 -
Miscellaneous Expenses (11 items) 17 11
--------- ---------
TOTAL $3,817 $2,479
==== ====
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(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, 1994
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 $157,959 $157,959 (A) $157,959 (B) $157,959
---------- ---------- ---------- ---------
TOTAL $157,959 $157,959 $157,959 $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
2/28/94 4/01/94 3 $157,959
<PAGE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(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, 1994
(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 $ $ 4,950
See Notes to Financial Statements
on Page 19.
---------- -----------
TOTAL $ $ 4,950
==== ====
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE
COMPANIES
Massachusetts Electric Company $ 162 $ 440
New England Power Company 94 437
Granite State Electric Company 2 2
The Narragansett Electric Company 88 88
New England Hydro Transmission Electric Co., Inc. - 4
New England Electric System 2 2
---------- -----------
TOTAL $ 273 $ 971
==== ====
ACCOUNT 242 - MISCELLANEOUS CURRENT AND
ACCRUED LIABILITIES
Accrued Pension Costs $ 5,303 $ (2,337)
Accrued Severance Costs 371 17
Group Insurance 41 21
NEES Goals 3,575 2,896
Commuter Use of Company Vehicles (18) (19)
Workman's Compensation Insurance 94 265
Postemployment Benefits - 3,466
Property Under Capital Lease 8,701 11,658
Healthcare Costs 103 (295)
Other (8) -
---------- -----------
TOTAL $ 18,162 $ 15,672
==== ====
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
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 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 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 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, 1994 the detail of this pool was as follows:
Investments in the Pool:
New England Electric System $24,800,000
New England Hydro-Trans. Electric Co., Inc. 3,850,000
New England Hydro Transmission Corp. 775,000
New England Electric Transmission 325,000
New England Energy Incorporated 1,350,000
Narragansett Energy Resources Company 1,600,000 $32,700,000
-------------- ======
Borrowings from the Pool:
Massachusetts Electric Company $ 8,650,000
Granite State Electric Company 2,525,000
New England Power Company 16,575,000
New England Power Service Company 4,950,000 $32,700,000
-------------- ======
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(In Thousands)
SCHEDULE XV
STATEMENT OF INCOME
ACCOUNT DESCRIPTION CURRENT PRIOR
YEAR YEAR
INCOME
457 Services rendered to associate companies $220,618 $198,268
458 Services rendered to nonassociate companies 2,432 2,913
421 Miscellaneous income or loss
----------- -----------
TOTAL INCOME 223,050 201,181
----------- -----------
EXPENSE
920 Salaries and wages 89,269 89,002
921 Office supplies and expenses 53,199 30,312
922 Administrative expense transferred - credit
923 Outside services employed 4,397 4,097
924 Property insurance 9 92
925 Injuries and damages 2,606 2,397
926 Employee pensions and benefits 37,287 43,998
928 Regulatory commission expense 166 91
930.1 General advertising expenses
930.2 Miscellaneous general expenses 67 4
931 Rents 24,784 18,434
932 Maintenance of structures and equipment 3,046 3,403
403 Depreciation and amortization expense
408 Taxes other than income taxes 7,645 7,658
409 Income taxes (2,104) (6,302)
410 Provision for deferred income taxes 1,960 1,015
411 Provision for deferred income taxes - credit (417) (4,780)
411.5 Investment tax credit (39) (61)
426.1 Donations 180 156
426.5 Other deductions
427 Interest on long-term debt
430 Interest on debt to associate companies (416) (159)
431 Other interest expense 1,253 1,604
----------- -----------
TOTAL EXPENSE 222,892 201,023
----------- -----------
NET INCOME OR (LOSS) $ 158 $ 158
==== ====
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(In Thousands)
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
DIRECT INDIRECT COMPENSATION TOTAL
COSTS COSTS FOR USE AMOUNT
NAME OF ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED
457-1 457-2 457-3
New England Electric System $ 1,711 $ 184 $ 1 $ 1,896
Massachusetts Electric Company 61,008 10,054 40 71,102
New England Hydro-Transmission
Electric Co., Inc. 1,551 222 1 1,774
New England Hydro Transmission Corp. 461 61 522
New England Power Company 86,642 18,864 76 105,582
New England Electric Transmission
Corp. 467 55 522
Yankee Atomic Electric Company 160 36 196
Vermont Yankee Nuclear Power Corp. (3) (3)
Granite State Electric Company 3,706 679 2 4,387
Narragansett Energy Resources Company 38 8 46
The Narragansett Electric Company 27,133 5,288 20 32,441
New England Energy Incorporated 946 109 1,055
New England Energy Resources, Inc. 869 228 1 1,098
-------- ------- ---- -------
TOTAL $184,689 $35,788 $141 $220,618
===== ==== === =====
<PAGE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(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) General Electric $ 1 $16 $ 17
2) REMVEC Billings $2,444 $(20) $2,424 2,424
3) Aetna Insurance Co. (9) (9) (9)
4) Pontook Hydroelectric 2 2 2
5) Hudson Light and Power (3) (3) (3)
6) Various (4 under 1,000) 1 1 1
-------- ----- ----- -------- ----- --------
TOTAL $2,435 $(20) $ 1 $2,415 $16 $2,432
=== == == === == ===
INSTRUCTION: Provide a brief description of the services rendered to each nonassociated company:
1) High Voltage Direct Current Study
2) Centralized Eastern N.E. Dispatching System
3) Legal Services
4) Meter Replacement
5) Meter Testing
6) Meter Testing/RAPR Repair/Line Inspection
</TABLE>
<PAGE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(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 $ 75,567 $13,701 $ 89,268 $ 1 $ 1 $ 75,568 $13,701 $ 89,269
921 Office Supplies and Expenses 44,288 6,478 50,766 2,433 2,433 46,721 6,478 53,199
922 Administrative Expense
Transferred-Credit
923 Outside Services Employed 3,825 572 4,397 3,825 572 4,397
924 Property Insurance (48) 57 9 (48) 57 9
925 Injuries and Damages 566 2,040 2,606 1 566 2,040 2,606
926 Employee Pensions and Benefits 31,541 5,745 37,286 1 31,542 5,745 37,287
928 Regulatory Commission Expense 154 12 166 154 12 166
930.1 General Advertising Expenses
930.2 Miscellaneous General Expenses 35 32 67 35 32 67
931 Rents 20,414 4,370 24,784 20,414 4,370 24,784
932 Maintenance of Structures and
Equipment 1,405 1,641 3,046 1,405 1,641 3,046
403 Depreciation and Amortization
Expense
408 Taxes Other Than Income Taxes 6,459 1,186 7,645 6,459 1,186 7,645
409 Income Taxes (2,034) (2,034) $(70) (70) (2,104) (2,104)
410 Provision for Deferred Income
Taxes 1,895 1,895 65 65 1,960 1,960
411 Provision for Deferred Income
Taxes-Credit (403) (403) (14) (14) (417) (417)
411.5 Investment Tax Credit (38) (38) (1) (1) (39) (39)
426.1 Donations 7 173 180 7 173 180
426.5 Other Deductions
427 Interest on Long-Term Debt
431 Other Interest Expense 476 777 1,253 476 777 1,253
-------- ------- -------- ------ ---- ------ -------- ------- --------
TOTAL EXPENSES $184,689 $36,204 220,893 $2,435 $(20) 2,415 $187,124 $36,184 223,308
======== ======= ======= ====== ==== ==== ======== ======= =======
Compensation for use of
Equity Capital 141 17 158
-------- ------ --------
430 Interest on Debt to
Associate Companies (416) - (416)
-------- ------ --------
TOTAL COST OF SERVICE $220,618 $2,432 $223,050
==== === ====
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, 1994
(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 $ 89,269 $4,826 $366 $1,433 $8,544 $1,373
921 Office supplies and expenses 53,199 1,686 109 769 4,906 204
922 Administrative expense transferred - credit
923 Outside services employed 4,397 306 (2) 7 216
924 Property insurance 9
925 Injuries and damages 2,606 273
926 Employee pensions and benefits 37,287 39 3 48
928 Regulatory commission expense 166 1
930.1 General advertising expenses
930.2 Miscellaneous general expense 67
931 Rents 24,784 9 56 (585) 1,136
932 Maintenance of structures and equipment 3,046 1
403 Depreciation and amortization expense
408 Taxes other than income taxes 7,645
409 Income taxes (2,104) (2,104)
410 Provision for deferred income taxes 1,960 1,960
411 Provision for deferred income taxes - credit (417) (417)
411.5 Investment tax credit (39) (39)
426.1 Donations 180
426.5 Other deductions
427 Interest on long-term debt
430 Interest on debt to associate companies (416)
431 Other interest expense 1,253
----------- -------- --------- -------- --------- ---------- ---------
TOTAL EXPENSES $222,892 $ (600) $7,410 $473 $2,268 $13,129 $2,714
==== === === === === ==== ===
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, 1994
(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 $1,357 $177 $ 2,364 $10,868 $4,077 $873 $909 $29,181 $ 1,423 $ 703 $ 8,202
921 289 145 856 23,613 3,559 142 146 8,625 590 378 757
922
923 1 107 1,100 1,409 436 10 29 102 9 4 38
924 9
925 54 24 79 2,094 (1)
926 3 1 25,566 47 57 24 (5) 9,182 14 2,309
928 1 69 1 4
930.1
930.2 67
931 1 7 21,308 2 631 2 48
932 1,303 1,624 63
403
408 56 7,589
409
410
411
411.5
426.1 129 1 50
426.5
427
430 (416)
431 12 1,241
-------- ------ ---------- ---------- -------- ---- --------- ---------- ---------- --------- -------
$1,651 $430 $31,379 $58,871 $8,131 $1,118 $1,108 $38,732 $13,389 $1,099 $19,821
=== == ==== ==== === == === ==== ==== === ====
</TABLE>
<PAGE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(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 $988 $ 668 $1,752 $5,773 $3,412
921 164 119 1,239 4,077 826
922
923 58 2 66 499
924
925 48 35
926 18 (44) 25
928 90
930.1
930.2
931 2,168 1
932 55
403
408
409
410
411
411.5
426.1
426.5
427
430
431
--------- --------- --------- --------- ----- ------ ---- ---------- ---------- ---------- ----------
$1,152 $ 845 $3,011 $12,143 $4,888
=== === === === === ==== ==== ==== ==== ==== ====
</TABLE>
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(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 $ 4,826 $358 $ 4,468 $ 38
02 Research &
Development 366 366 7
03 Customer Service 1,433 4 1,429 49
04 Engineering 8,544 8,544 160
05 REMVEC 1,373 1,373 23
06 Purchase Material
Management 1,357 1,357 28
07 Labor Relations 177 177 3
08 Human Resources 2,364 1 2,363 46
09 Information Services 10,868 4 10,864 195
10 Demand Side Management 4,077 4,077 73
11 Rates 873 873 16
12 Environmental 909 909 12
13 Construction 29,181 29,181 570
14 Treasury/Financial 1,423 211 1,212 29
15 Financial Forecasting 703 703 11
16 Corporate Accounting 8,202 23 8,179 163
17 Fuel Procurement 988 988 17
18 Internal Audit 668 668 13
19 Planning & Power
Supply 1,752 1,752 26
20 Transmission
Distribution
Supervision 5,773 5,772 1 95
21 Corporate Legal 3,412 75 3,337 51
------- ---- ------- ---- -----
TOTAL $89,269 $676 $88,592 $ 1 $1,625
==== === ==== == ===
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(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 $ 113
Boston, MA 02109
------
LEGAL SERVICES
Kirkland & Ellis Suite 1200 NA 61
655 Fifteenth Street NW
Washington, DC 20005
Skadden, Arps, Slate, 919 Third Avenue NA 74
Meagher & Flom New York, NY 10022-9931
Bowditch & Dewey 311 Main Street NA 50
Worcester, MA 01608
Swidler & Berlin 300 K Street NW NA 228
Worcester, MA 01608
The Brattle Group 50 Church Street NA 63
Cambridge, MA 02138-3726
Glenn Dawson 101 Tremont Street NA 66
Boston, MA 02108
Keller & Heckman 1001 G Street NW NA 38
Suite 500 West
Washington, DC 20001
Nine Vendors NA 90
(Each Under $25,000) ------
TOTAL LEGAL SERVICES 670
------
OTHER SERVICES
The Ayco Corporation One Wall Street NA 60
Albany, NY 12205
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(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 126
Wellesley Hills, MA 02181
Paul L. Joskow 7 Chilton Street NA 30
Brookline, MA 02146
Bailey Research
Assoc., Inc. 292 Madison Avenue NA 39
New York, NY 10017
Black and Veatch P.O. Box 27258 NA 50
Kansas City, MO 64180-0258
Middleton, WI 53562
Texas Instruments P.O. Box 10013 NA 664
Atlanta, GA 30384
Mercer Management P.O. Box 3800-28 NA 349
Boston, MA 02241
New Boston Systems 146 Bowdoin Street NA 354
Boston, MA 02108
William Mercer, Inc. P.O. Box 6010 NA 297
Boston, MA 02212
Burke Group 22761 Pacific Coast Highway NA 53
Suite 270
Malibou, CA 90265
Chapman Associates P.O. Box 915 NA 34
Consulting Engineers Northfield, MA 01360
Demoor Software and
Consulting 104 Maryland Road NA 33
Tewksbury, MA 01876
Easton Consultants, Inc. One Stamford Plaza NA 48
Stamford, CT 06901
Command Systems, Inc. One Corporate Center NA 147
15th Floor
Hartford, CT 06103
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(In Thousands)
OUTSIDE SERVICES EMPLOYED - CONTINUED
ACCOUNT 923
RELATIONSHIP
"A"- ASSOCIATE
FROM WHOM PURCHASED ADDRESS "NA"- NON ASSOCIATE AMOUNT
Price Waterhouse 160 Federal Street NA 39
Boston, MA 02110
Regional Economic
Research, Inc. 12520 High Bluff Drive NA 58
Suite 220
San Diego, CA 92130-2041
Stone & Webster
Management One Penn Plaza NA 56
Consultants 250 W 34th Street
New York, NY 10119-1265
Tac Temps P.O. Box 4785 NA 114
Boston, MA 02212
United Engineers, Inc. Crossroads Industrial Park NA 48
Holyoke, MA 01040
Towers, Perrin, Forster P.O. Box 8500, S-6110 NA 338
and Crosby Philadelphia, PA 19178
Keane, Inc. P.O. Box 4201 NA 215
Boston, MA 02211
Fuessler Group, Inc. 324 Shawmut Avenue NA 48
Boston, MA 02118
International Business P.O. Box 7247-0298 BO-WBW
Philadelphia, PA 19170-0298 NA 29
Kenda Systems, Inc. P.O. Box 3876 NA 35
Boston, MA 02241-3876
Northbridge Group 950 Winter Street NA 44
Waltham, MA 02154
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(In Thousands)
OUTSIDE SERVICES EMPLOYED - CONTINUED
ACCOUNT 923
RELATIONSHIP
"A"- ASSOCIATE
FROM WHOM PURCHASED ADDRESS "NA"- NON ASSOCIATE AMOUNT
Pentagram Design, Inc. 212 Fifth Avenue NA 41
New York, NY 10010
Sixty-five Vendors NA 265
(Each Under $25,000)
------
TOTAL OTHER SERVICES 3,614
------
GRAND TOTAL $4,397
===
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(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 $ 11,582
Postretirement Benefits Other than Pensions 12,129
Postemployment Benefits 3,476
Group Insurance Premiums 840
Executive Life Insurance (586)
Medical Insurance Premiums 6,187
Employee Publications 334
Employee Health Program 410
Employee Educational Aid 264
Employee Thrift Plan 1,756
Employee Occupational Health Service 135
Employee Benefits Administration 601
Cafeteria 30
Miscellaneous (Each Under $25,000) 129
-----------
TOTAL $37,287
====
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(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, 1994
(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 $67
-----
TOTAL $67
==
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(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 $ 1,986
Office Equipment 888
Microwave and Telemetering Equipment 937
Computers 7,790
Transportation Equipment 1,040
Capital Lease - Computer Information Systems 12,143
------
TOTAL $24,784
====
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(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 $1,304
Municipal - Motor Vehicle Excise 37
Use & Fuel - Motor Vehicle Excise 7
--------
SUBTOTAL 1,348
--------
2) U.S. GOVERNMENT TAXES
Federal Unemployment 91
Federal Insurance Contribution Act - Company 6,186
Miscellaneous 20
--------
SUBTOTAL 6,297
--------
TOTAL $7,645
===
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(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 $ 8
Worcester Polytechnic
Institute Matching Gifts Program 7
United Way Matching Gifts Program 66
Woods Hole Oceanographic
Institute Matching Gifts Program 4
St. John's Seminary Matching Gifts Program 4
Pine Street Inn Human Services Agency 6
College of the Holy Cross Matching Gifts Program 3
Massachusetts Institute of
Technology Matching Gifts Program 3
Miscellaneous (376 Items) Matching Gifts Program
(Each Vendor Under $3,000) for colleges, universities,
and other charitable
organizations 79
--------
TOTAL $180
===
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1994
(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, 1994
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, 1994
<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, 1994
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, 1994
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 1994 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 $156,891 $ 1,068 $157,959
Excess of Revenues Billed
Over Costs Incurred to
Non-Associated Companies (16,440) 16,440 0
------------- ---------- -------------
Compensation for Use of
Equity Capital Billed $140,451 $17,508 $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, 1994
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)
<PAGE>
EXHIBIT INDEX
Exhibit No. Description Page
- ----------- ----------- ----
27 Financial Data Schedule Filed herewith
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> OPUR2
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
BALANCE SHEET AND RELATED STATEMENTS OF INCOME, RETAINED EARNINGS AND
CASH FLOWS OF NEW ENGLAND POWER SERVICE COMPANY, AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<PERIOD-TYPE> 12-MOS
<BOOK-VALUE> PER-BOOK
[TOTAL-NET-UTILITY-PLANT] 0
[OTHER-PROPERTY-AND-INVEST] 44,058
<TOTAL-CURRENT-ASSETS> 41,892
[TOTAL-DEFERRED-CHARGES] 2,479 <F1>
[OTHER-ASSETS] 0
[TOTAL-ASSETS] 92,777
[COMMON] 0
[CAPITAL-SURPLUS-PAID-IN] 1,350
[RETAINED-EARNINGS] 158
[TOTAL-COMMON-STOCKHOLDERS-EQ] 1,508
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[LONG-TERM-DEBT-NET] 0
[SHORT-TERM-NOTES] 0
[LONG-TERM-NOTES-PAYABLE] 0
[COMMERCIAL-PAPER-OBLIGATIONS] 0
[LONG-TERM-DEBT-CURRENT-PORT] 0
[PREFERRED-STOCK-CURRENT] 0
[CAPITAL-LEASE-OBLIGATIONS] 0
[LEASES-CURRENT] 0
[OTHER-ITEMS-CAPITAL-AND-LIAB] 91,269
[TOT-CAPITALIZATION-AND-LIAB] 92,777
[GROSS-OPERATING-REVENUE] 0
[INCOME-TAX-EXPENSE] 0
[OTHER-OPERATING-EXPENSES] 0
[TOTAL-OPERATING-EXPENSES] 0
[OPERATING-INCOME-LOSS] 0
[OTHER-INCOME-NET] 158
[INCOME-BEFORE-INTEREST-EXPEN] 158
[TOTAL-INTEREST-EXPENSE] 0
<NET-INCOME> 158
[PREFERRED-STOCK-DIVIDENDS] 0
[EARNINGS-AVAILABLE-FOR-COMM] 158
<PAGE>
[COMMON-STOCK-DIVIDENDS] 158
[TOTAL-INTEREST-ON-BONDS] 0
[CASH-FLOW-OPERATIONS] (2,011)
[EPS-PRIMARY] 0
[EPS-DILUTED] 0
<FN>
<F1> Total deferred charges includes other assets.
</FN>
