<PAGE>
FORM U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
For the Period
Beginning January 1, 1995 and Ending December 31, 1995
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>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
<CAPTION>
Schedule or Page
Description of Schedules and Accounts Account No. Number
<S> <C> <C>
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 28-32
Employee pensions and benefits Account 926 33
General advertising expenses Account 930.1 34
Miscellaneous general expenses Account 930.2 35
Rents Account 931 36
Taxes other than income taxes Account 408 37
Donations Account 426.1 38
Other deductions Account 426.5 39
Notes to statement of income Schedule XVIII 40
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Page
Description of Reports or Statements Number
ORGANIZATION CHART 41
METHODS OF ALLOCATION 42
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED 43
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
</TABLE>
<PAGE>
<TABLE>
For the Year Ended December 31, 1995
(In Thousands)
SCHEDULE I
COMPARATIVE BALANCE SHEET
Give balance sheet of Company as of December 31 of the current and prior year
<CAPTION>
Account Assets and Other Debits As of December 31
Current Prior
<S> <C> <C> <C>
SERVICE COMPANY PROPERTY
101 Service company property (Schedule II) $18,175 $29,103
107 Construction work in progress (Schedule II)
-------- --------
Total Property 18,175 29,103
-------- --------
108 Less accumulated provision for depreciation
and amortization of service
company property (Schedule III) 138 138
-------- --------
Net Service Company Property 18,037 28,965
-------- --------
INVESTMENTS
123 Investments in associate companies (Schedule IV)
124 &
128 Other Investments (Schedule IV) 45,215 15,093
-------- --------
Total Investments 45,215 15,093
-------- --------
CURRENT AND ACCRUED ASSETS
131 Cash 12 347
134 Special deposits 121 107
135 Working funds 72 89
136 Temporary cash investments (Schedule IV) 1,100 0
141 Notes receivable from associate companies
(Money Pool)
143 Accounts receivable 2,842 2,963
144 Accumulated provision of uncollectible accounts
146 Accounts receivable from associate companies
(Schedule V) 11,308 31,995
152 Fuel stock expenses undistributed (Schedule VI)
154 Materials and supplies 3 7
163 Stores expense undistributed (Schedule VII)
165 Prepayments 10,489 6,384
174 Miscellaneous current and accrued assets
(Schedule VIII)
------- -------
Total Current and Accrued Assets 25,947 41,892
------- -------
DEFERRED DEBITS
181 Unamortized debt expense
184 Clearing accounts
186 Miscellaneous deferred debits (Schedule IX) 3,033 2,479
188 Research, development, or demonstration
expenditures (Schedule X)
190 Accumulated deferred income taxes 5,496 4,348
------- -------
Total Deferred Debits 8,529 6,827
------- -------
TOTAL ASSETS AND OTHER DEBITS $97,728 $92,777
======= =======
</TABLE>
<PAGE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(In Thousands)
SCHEDULE I
COMPARATIVE BALANCE SHEET
<CAPTION>
Account Liabilities and Proprietary Capital As of December 31
Current Prior
<S> <C> <C> <C>
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI)
211 Miscellaneous paid-in-capital (Schedule XI) $16,350 $ 1,350
215 Appropriated retained earnings (Schedule XI)
216 Unappropriated retained earnings (Schedule XI) 165 158
------- -------
Total Proprietary Capital $16,515 $ 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 10,215 15,318
233 Notes payable to associate companies
(Schedule XIII) - 4,950
234 Accounts payable to associate companies
(Schedule XIII) 148 971
236 Taxes accrued 524 944
237 Interest accrued 19 16
238 Dividends declared
241 Tax collections payable 1,272 273
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 13,784 15,672
------- --------
Total Current and Accrued Liabilities 25,962 38,144
------- --------
DEFERRED CREDITS
253 Other deferred credits 55,251 53,099
255 Accumulated deferred investment tax credits - 26
------- --------
Total Deferred Credits 55,251 53,125
------- --------
282 ACCUMULATED DEFERRED INCOME TAXES
------- --------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $97,728 $92,777
======= ========
</TABLE>
<PAGE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(In Thousands)
SCHEDULE II
SERVICE COMPANY PROPERTY
<CAPTION>
BALANCE AT RETIREMENTS BALANCE
BEGINNING OR OTHER (1) AT CLOSE
DESCRIPTION OF YEAR ADDITIONS SALES CHANGES OF YEAR
<S> <C> <C> <C> <C> <C>
Account
301 Organization
303 Miscellaneous
Intangible
Plant
304 Land and Land
Rights
305 Structures and
Improvements
306 Leasehold
Improvements
307 Equipment (2) $29,062 $(10,928) $18,134
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 $29,103 $(10,928) $18,175
-------- -------- ---- ----- --------
107 Construction
Work in
Progress (4)
--------- -------- ---- ----- --------
TOTAL $29,103 $(10,928) $18,175
========= ======== ==== ===== ========
</TABLE>
<PAGE>
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(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 $(10,928) (A) $18,037
-------- -------
TOTAL $(10,928) $18,134
======== =======
(3) DESCRIBE OTHER SERVICE COMPANY PROPERTY:
None
(4) DESCRIBE CONSTRUCTION WORK IN PROGRESS:
None
(A) Primarily reflects amortization of capital lease.
<PAGE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(In Thousands)
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
<CAPTION>
ADDITIONS OTHER
BALANCE AT CHARGED CHANGES BALANCE
BEGINNING TO RETIRE- ADD AT CLOSE
DESCRIPTION OF YEAR ACCT 403 MENTS (DEDUCT)(1) OF YEAR
<S> <C> <C> <C> <C> <C>
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
</TABLE>
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(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/Deferred
Compensation Plan Trust Fund $10,000 $37,784
General American Life Insurance Company -
Net Cash Surrender Value 3,134 3,853
Confederation Life Insurance Company -
Net Cash Surrender Value 1,623 2,073
Aurora National Life Insurance Company -
Net Cash Surrender Value 272 1,344
Metropolitan Life Insurance Company -
Net Cash Surrender Value - 190
Pacific Mutual Life Insurance Company -
Deferred Compensation - Life Insurance
Investments & Net Cash Surrender Value 64 (29)
------- -------
TOTAL $15,093 $45,215
======= =======
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS $ 0 $ 1,100
See Notes to Financial Statements
on page 19.
------- -------
TOTAL $ 0 $ 1,100
======= =======
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(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 $ 196 $ 699
Massachusetts Electric Company 10,085 4,283
New England Hydro-Trans. Electric Co., Inc. 395 43
New England Hydro Transmission Corp. 148 6
New England Power Company 15,745 4,192
New England Electric Transmission Corp. 104 14
Yankee Atomic Electric Company 42 77
Granite State Electric Company 660 242
Narragansett Energy Resources Company 8 (10)
The Narragansett Electric Company 4,177 1,731
New England Energy Incorporated 233 34
New England Energy Resources, Inc. 202 (3)
------- -------
TOTAL $31,995 $11,308
======= =======
TOTAL
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS
PAYMENTS:
New England Electric System $ 2
Massachusetts Electric Company 411
New England Hydro-Trans. Electric Co., Inc. 4
New England Hydro Transmission Corp. -
New England Power Company 2,501
New England Electric Transmission Corp. 1
Yankee Atomic Electric Company 163
Granite State Electric Company 18
Narragansett Energy Resources Company -
The Narragansett Electric Company 595
New England Energy Incorporated 4
New England Energy Resources, Inc. -
------
TOTAL PAYMENTS $3,699
======
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(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, 1995
(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, 1995
(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>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(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.
<CAPTION>
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
<S> <C> <C>
ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS
Unbilled Computer Information Systems Costs $1,213 $ 678
Unbilled Microwave Improvements 624 1,913
Unbilled Building Leasehold Improvements - 610
Deferred Radio Expenses 377 -
Employee House Purchased 100 -
Deferred Renovation Expenses 357 -
Unbilled Shared Microwave System Expenses (53) (102)
Unbilled Dispatching Expenses (REMVEC) (77) (118)
Unbilled Heavy Equipment Expenses 50 42
Unbilled Overheads (123) -
Miscellaneous Expenses (7 items) 11 10
------ ------
TOTAL $2,479 $3,033
====== ======
</TABLE>
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(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>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
SCHEDULE XI
PROPRIETARY CAPITAL
<CAPTION>
OUTSTANDING
NUMBER OF PAR OR STATED CLOSE OF PERIOD
ACCOUNT SHARES VALUE NO. OF TOTAL
NUMBER CLASS OF STOCK AUTHORIZED PER SHARE SHARES AMOUNT
<S> <C> <C> <C> <C> <C>
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
Capital contributions from New England
Electric System, the holding company,
authorized on:
December 21, 1979 (SEC Release Number 35-21354) $ 1,350,000
December 29, 1995 15,000,000
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS None
----------
TOTAL $16,350,000
==========
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 $165,492 (A) $157,959 (B) $165,492
-------- -------- -------- --------
TOTAL $157,959 $165,492 $157,959 $165,492
======== ======== ======== ========
(A) Return on equity of 11.25% as authorized by SEC File #70-6353 amendment
No. 11 dated August 18, 1995.
(B) DATE DATE NO. OF TOTAL
DECLARED PAID SHARES DIVIDEND
2/22/95 4/03/95 3 $157,959
</TABLE>
<PAGE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(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, 1995
(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 $ 440 $ 52
New England Power Company 437 57
Granite State Electric Company 2 1
The Narragansett Electric Company 86 30
New England Electric Transmission Corp. - 8
New England Hydro Transmission Electric
Co., Inc. 4 -
New England Electric System 2 -
------- ------
TOTAL $ 971 $ 148
======= ======
ACCOUNT 242 - MISCELLANEOUS CURRENT AND
ACCRUED LIABILITIES
Accrued Pension Costs $(2,337) $ -
Accrued Severance Costs 17 -
Group Insurance 21 29
NEES Goals 2,896 2,991
Commuter Use of Company Vehicles (19) -
Workman's Compensation Insurance 265 -
Postemployment Benefits 3,466 3,387
Property Under Capital Lease 11,658 6,943
Healthcare Costs (295) (57)
Municipal Taxes - (117)
Accrued Benefit Costs - 608
--------- ----------
TOTAL $ 15,672 $ 13,784
========= ==========
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
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, 1995 the detail of this pool was as follows:
Investments in the Pool:
New England Electric System $ 3,600,000
New England Hydro-Trans. Electric Co., Inc. 950,000
New England Hydro Transmission Corp. 150,000
New England Energy Incorporated 1,100,000
Narragansett Energy Resources Company 400,000
New England Power Service Company 1,100,000 $7,300,000
----------- ==========
Borrowings from the Pool:
Massachusetts Electric Company $ 1,000,000
Granite State Electric Company 3,550,000
New England Power Company 1,025,000
The Narragansett Electric Company 1,000,000
New England Electric Transmission Corp. 725,000 $7,300,000
----------- ==========
<PAGE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(In Thousands)
SCHEDULE XV
STATEMENT OF INCOME
<CAPTION>
ACCOUNT DESCRIPTION CURRENT PRIOR
YEAR YEAR
<S> <C> <C> <C>
INCOME
457 Services rendered to associate companies $217,144 $220,618
458 Services rendered to nonassociate companies 2,177 2,432
421 Miscellaneous income or loss
------- -------
TOTAL INCOME 219,321 223,050
------- -------
EXPENSE
920 Salaries and wages 93,280 89,269
921 Office supplies and expenses 39,234 53,199
922 Administrative expense transferred - credit
923 Outside services employed 10,830 4,397
924 Property insurance 116 9
925 Injuries and damages 1,129 2,606
926 Employee pensions and benefits 37,131 37,287
928 Regulatory commission expense 77 166
930.1 General advertising expenses
930.2 Miscellaneous general expenses 102 67
931 Rents 27,512 24,784
932 Maintenance of structures and equipment 2,144 3,046
403 Depreciation and amortization expense
408 Taxes other than income taxes 7,980 7,645
409 Income taxes 162 (2,104)
410 Provision for deferred income taxes 813 1,960
411 Provision for deferred income taxes - credit (1,960) (417)
411.5 Investment tax credit (26) (39)
426.1 Donations 221 180
426.5 Other deductions
427 Interest on long-term debt
430 Interest on debt to associate companies (902) (416)
431 Other interest expense 1,313 1,253
------- -------
TOTAL EXPENSE 219,156 222,892
------- -------
NET INCOME OR (LOSS) $ 165 $ 158
======= =======
</TABLE>
<PAGE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(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 $ 2,020 $ 286 $ 1 $ 2,307
Massachusetts Electric Company 57,400 10,444 46 67,890
New England Hydro-Transmission
Electric Co., Inc. 1,525 222 1 1,748
New England Hydro Transmission Corp. 500 64 564
New England Power Company 84,589 23,209 84 107,882
New England Electric Transmission
Corp. 420 65 485
Yankee Atomic Electric Company 85 55 140
Granite State Electric Company 3,594 858 4 4,456
Narragansett Energy Resources Company 73 35 108
The Narragansett Electric Company 24,346 4,791 22 29,159
New England Energy Incorporated 1,030 102 1 1,133
New England Energy Resources, Inc. 953 318 1 1,272
-------- ------- ---- --------
TOTAL $176,535 $40,449 $160 $217,144
======== ======= ==== ========
<PAGE>
</TABLE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(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) REMVEC Billings $2,031 $(31) 5 $2,005 0 $2,005
2) Martin Marietta 156 (1) - 155 0 155
3) Central Maine Power Company 17 - - 17 0 17
----- ---- --- ----- --- ----
TOTAL $2,204 $(32) $ 5 $2,177 0 $2,177
===== ==== === ===== === =====
INSTRUCTION: Provide a brief description of the services rendered to each nonassociated company:
1) Centralized Eastern N.E. Dispatching System
2) Testing of HVDC Transmission/Cost Reduction
3) Storm Restoration Services
</TABLE>
<PAGE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(In Thousands)
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE ASSOCIATE AND NONASSOCIATE COMPANIES
<CAPTION>
ASSOCIATE COMPANY CHARGESNONASSOCIATE COMPANY CHARGESTOTAL CHARGES FOR SERVICE
------------------------------------------------------------------------------
DIRECT INDIRECT DIRECT INDIRECT DIRECTINDIRECT
COST COST TOTAL COST COST TOTAL COST COST TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
920 Salaries and Wages $ 81,490 $11,750 $ 93,240 $ 40 $ 40 $ 81,530 $11,750$ 93,280
921 Office Supplies and Expenses 26,988 10,194 37,182 2,052 2,052 29,040 10,194 39,234
922 Administrative Expense
Transferred-Credit
923 Outside Services Employed 9,937 781 10,718 112 112 10,049 781 10,830
924 Property Insurance 116 116 116 116
925 Injuries and Damages 986 143 1,129 986 143 1,129
926 Employee Pensions and Benefits 32,453 4,678 37,131 32,453 4,678 37,131
928 Regulatory Commission Expense 72 5 77 72 5 77
930.1 General Advertising Expenses
930.2 Miscellaneous General Expenses 102 102 102 102
931 Rents 16,313 11,199 27,512 16,313 11,199 27,512
932 Maintenance of Structures and
Equipment 2,144 2,144 2,144 2,144
403 Depreciation and Amortization
Expense
408 Taxes Other Than Income Taxes 6,974 1,006 7,980 6,974 1,006 7,980
409 Income Taxes 157 157 $ 5 5 162 162
410 Provision for Deferred Income
Taxes 787 787 26 26 813 813
411 Provision for Deferred Income
Taxes-Credit (1,898) (1,898) (62) (62) (1,960) (1,960)
411.5 Investment Tax Credit (25) (25) (1) (1) (26) (26)
426.1 Donations 21 200 221 21 200 221
426.5 Other Deductions
427 Interest on Long-Term Debt
431 Other Interest Expense 1,301 12 1,313 1,301 12 1,313
-------- ------- ------- ------ ---- ------ -------- ------- -------
TOTAL EXPENSES $176,535 $41,351 217,886 $2,204 $(32) 2,172 $178,739 $41,319 220,058
======== ======= ======= ====== ==== ====== ======== ======= =======
Compensation for use of
Equity Capital 160 5 165
------- ------ -------
430 Interest on Debt to
Associate Companies (902) - (902)
-------- ------ --------
TOTAL COST OF SERVICE $217,144 $2,177 $219,321
======== ====== ========
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, 1995
(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 $ 93,280 $3,406 $410 $2,350 $10,124 $1,500
921 Office supplies and expenses 39,234 672 62 1,095 3,298 1,024
922 Administrative expense transferred - credit
923 Outside services employed 10,830 124 20 1,861
924 Property insurance 116
925 Injuries and damages 1,129
926 Employee pensions and benefits 37,131 3 22 156 49
928 Regulatory commission expense 77
930.1 General advertising expenses
930.2 Miscellaneous general expense 102 14
931 Rents 27,512 311 536 210
932 Maintenance of structures and equipment 2,144
403 Depreciation and amortization expense
408 Taxes other than income taxes 7,980
409 Income taxes 162 162
410 Provision for deferred income taxes 813 813
411 Provision for deferred income taxes - credit (1,960) (1,960)
411.5 Investment tax credit (26) (26)
426.1 Donations 221
426.5 Other deductions
427 Interest on long-term debt
430 Interest on debt to associate companies (902)
431 Other interest expense 1,313 21
-------- ------- ------- ---- ------ ------- ------
TOTAL EXPENSES $219,156 $ (1,011) $ 4,223 $475 $3,798 $15,989 $2,783
======== ======= ======= ==== ====== ======= ======
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, 1995
(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 $1,462 $209 $ 3,919 $10,484 $4,550 $1,151 $947 $27,811 $ 1,834 $ 814 $ 6,367
921 174 110 2,363 13,891 4,322 86 82 4,619 1,106 76 115
922
923 128 1,276 6,058 278 2 68 122 18 18 80
924 116
925 560 58 429
926 5 1 36,091 282 37 11 4 180 59 11 77
928 38 1 1
930.1
930.2 42 2 25
931 1,792 20,030 58 4 2,184 1 838
932 2,144
403
408 7,980
409
410
411
411.5
426.1 155 66
426.5
427
430 (902)
431 (394) 1 22 1,663
------ ---- ------- ------- ------ ------ ------ ------- ------- ------ -------
$1,641 $448 $47,948 $50,745 $9,247 $1,288 $1,163 $34,917 $ 3,611 $ 919 $16,285
====== ==== ======= ======= ====== ====== ====== ======= ======= ====== =======
</TABLE>
<PAGE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(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 $1,134 $ 695 $4,163 $5,980 $3,970
921 45 30 264 4,831 969
922
923 7 75 21 168 506
924
925 31 51
926 3 12 10 30 88
928 2 35
930.1
930.2 19
931 15 1,511 22
932
403
408
409
410
411
411.5
426.1
426.5
427
430
431
------ ------ ------ ------- ------ ------ ------ ----- ----- ------ ------
$1,189 $ 812 $4,473 $12,553 $5,660
====== ====== ====== ======= ====== ====== ====== ===== ===== ====== ======
</TABLE>
<PAGE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(In Thousands)
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
<CAPTION>
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
<S> <C> <C> <C> <C> <C>
01 Management $ 3,406 $139 $ 3,267 16
02 Research &
Development 410 410 6
03 Customer Service 2,350 2,350 51
04 Engineering 10,124 10,095 $ 29 154
05 REMVEC 1,500 1,500 19
06 Purchase Material
Management 1,462 1,462 36
07 Labor Relations 209 209 3
08 Human Resources 3,919 272 3,647 44
09 Information Services 10,484 10,484 182
10 Demand Side Management 4,550 4 4,546 72
11 Rates 1,151 1,151 17
12 Environmental 947 947 13
13 Construction 27,811 27,800 11 481
14 Treasury/Financial 1,834 59 1,775 31
15 Financial Forecasting 814 814 14
16 Corporate Accounting 6,367 17 6,350 151
17 Fuel Procurement 1,134 1,134 18
18 Internal Audit 695 695 12
19 Planning & Power
Supply 4,163 4,163 57
20 Transmission
Distribution
Supervision 5,980 5,980 99
21 Corporate Legal 3,970 111 3,859 52
------- ---- ------- ---- ------
TOTAL $93,280 $602 $92,638 $ 40 $1,528
======= ==== ======= ==== ======
</TABLE>
<PAGE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(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.
<CAPTION>
RELATIONSHIP
"A"- ASSOCIATE
FROM WHOM PURCHASED ADDRESS "NA"- NON ASSOCIATE AMOUNT
<S> <C> <C> <C>
AUDITING SERVICES
Coopers & Lybrand 1 Post Office Square NA $ 143
Boston, MA 02109
------
LEGAL SERVICES
Skadden, Arps, Slate, 919 Third Avenue NA 60
Meagher & Flom New York, NY 10022-9931
Swidler & Berlin 3000 K Street NW NA 294
Washington, DC 20007
Covington & Burlington 1201 Pennsylvania Ave NA 71
Washington, DC 20044
Glenn Dawson 101 Tremont Street NA 126
Boston, MA 02108
Keller & Heckman 1001 G Street NW NA 29
Suite 500 West
Washington, DC 20001
Nineteen Vendors NA 29
(Each Under $25,000) ----
TOTAL LEGAL SERVICES 609
----
OTHER SERVICES
The Ayco Corporation One Wall Street NA 52
Albany, NY 12205
Reliance Systems 40 Washington Street NA 393
Wellesley Hills, MA 02181
Paul L. Joskow 7 Chilton Street NA 30
Brookline, MA 02146
Bailey Research
Assoc., Inc. 292 Madison Avenue NA 104
New York, NY 10017
</TABLE>
<PAGE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(In Thousands)
OUTSIDE SERVICES EMPLOYED - CONTINUED
ACCOUNT 923
<CAPTION>
RELATIONSHIP
"A"- ASSOCIATE
FROM WHOM PURCHASED ADDRESS "NA"- NON ASSOCIATE AMOUNT
<S> <C> <C> <C>
Mercer Management P.O. Box 3800-28 NA 164
Boston, MA 02241
New Boston Systems 146 Bowdoin Street NA 1,012
Boston, MA 02108
William Mercer, Inc. P.O. Box 6010 NA 96
Boston, MA 02212
Chapman Associates P.O. Box 915 NA 127
Consulting Engineers Northfield, MA 01360
Command Systems, Inc. One Corporate Center NA 309
15th Floor
Hartford, CT 06103
Price Waterhouse 160 Federal Street NA 337
Boston, MA 02110
Stone & Webster
Management One Penn Plaza NA 110
Consultants 250 W 34th Street
New York, NY 10119-1265
Towers, Perrin, Forster P.O. Box 8500, S-6110 NA 320
and Crosby Philadelphia, PA 19178
Fuessler Group, Inc. 324 Shawmut Avenue NA 181
Boston, MA 02118
International Business P.O. Box 7247-0298 BO-WBW NA 562
Philadelphia, PA 19170-0298
Pentagram Design, Inc. 212 Fifth Avenue NA 54
New York, NY 10010
Baradat & Chamberlin 1800 Harrison Street NA 70
Oakland, CA 94612
Blackstone Group 360 North Michigan Avenue NA 34
Chicago, IL 60601
Cambridge Reports
Research 955 Massachusetts Avenue NA 136
International Cambridge, MA 02139
Combined
Properties, Inc. 25 Riverview Business NA 38
300 Commercial Park
Malden, MA 02148
</TABLE>
<PAGE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(In Thousands)
OUTSIDE SERVICES EMPLOYED - CONTINUED
ACCOUNT 923
<CAPTION>
RELATIONSHIP
"A"- ASSOCIATE
FROM WHOM PURCHASED ADDRESS "NA"- NON ASSOCIATE AMOUNT
<S> <C> <C> <C>
Communications
Strategies 33 Spruce Road NA 54
North Reading, MA 01864
Corey & Company 9 Golen Street NA 80
Watertown, MA 02172
Employee Communications
Services 16 Tech Drive NA 55
Natick, MA 01760-1029
Daniel Engel 135 Martens Boulevard NA 29
San Rafael, CA 94901-0005
GE Information Services P.O. Box 640611 NA 40
Pittsburgh, PA 15264-0611
Lee Hecht Harrison 4310 Prudential Tower NA 124
Boston, MA 02199
Russell Minkwitz 6 Old Meadow Lane NA 123
Canton, MA 02021
NDT Engineering P.O. Box 128 NA 31
Westborough, MA 01581
Parsons Main, Inc. Prudential Center NA 41
Boston, MA 02199
Pendleton Productivity
Center Pendleton Square NA 49
386 West Main Street
Northborough, MA 01532-2128
Power Technologies P.O. Box 160 NA 63
Franklin Park, NJ 08823
RHR International P.O. Box 95122 NA 56
Chicago, IL 60694-5122
Standish Partners 105 Chestnut Street NA 26
Needham, MA 02192
</TABLE>
<PAGE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(In Thousands)
OUTSIDE SERVICES EMPLOYED - CONTINUED
ACCOUNT 923
<CAPTION>
RELATIONSHIP
"A"- ASSOCIATE
FROM WHOM PURCHASED ADDRESS "NA"- NON ASSOCIATE AMOUNT
<S> <C> <C> <C>
Triad Employment Services 131 Middlesex Turnpike NA 1,293
Burlington, MA 01803
Adept, Inc. P.O. Box 11512 NA 65
Boston, MA 02211
Alpine Computer
Systems, Inc. 125 Jeffrey Avenue NA 69
Holliston, MA 01746
Business Softworks
Associates, Inc. 51 Fearing Drive NA 114
Westwood, MA 02090
Camelot Contractors Ltd. 172 Route 101 Unit 9 NA 83
Bedford, NH 03110
Data Based
Development Systems 71 Shepard Drive NA 58
Manchester, CT 06040
Database Systems 179 Putnam Avenue NA 59
Cambridge, MA 02139-2946
Digital Financial
Services 1400 Computer Drive NA 348
Westboro, MA 01581
J A T Computer
Consulting, Inc. 1124 Route 202 South NA 63
Suite A2
Raritan, NJ
Maxima Consulting, Inc. 27 Water Street NA 142
Wakefield, MA 01880
Palmer and Associates 400 Pinnacle Way NA 140
Suite 430
Norcross, GA 30071
Pratt Partners 303 Congress Street NA 46
Suite 600
Boston, MA 02110
</TABLE>
<PAGE>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(In Thousands)
<CAPTION>
OUTSIDE SERVICES EMPLOYED - CONTINUED
ACCOUNT 923
RELATIONSHIP
"A"- ASSOCIATE
FROM WHOM PURCHASED ADDRESS "NA"- NON ASSOCIATE AMOUNT
<S> <C> <C> <C>
Technology Consulting, Inc. 1800 Meidinger Tower NA 84
Louisville, KY 40202
Walker Interactive Systems 303 Second Street NA 2,253
San Francisco, CA 94107
Eighty-five Vendors NA 361
(Each Under $25,000)
------
TOTAL OTHER SERVICES 10,078
------
GRAND TOTAL $10,830
======
</TABLE>
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(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 $16,776
Postretirement Benefits Other than Pensions 11,090
Postemployment Benefits (79)
Group Insurance Premiums 1,018
Executive Life Insurance (1,681)
Medical Insurance Premiums 5,258
Employee Publications 182
Employee Health Program 472
Employee Educational Aid 453
Employee Thrift Plan 2,521
Employee Occupational Health Service 186
Employee Benefits Administration 361
Employee Severance Costs 560
Miscellaneous (Each Under $25,000) 14
-------
TOTAL $37,131
=======
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(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, 1995
(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 $102
----
TOTAL $102
====
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(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 $ 2,507
Microwave and Telemetering Equipment 1,253
Computers 6,077
Transportation Equipment 1,457
Capital Lease - Computer Information Systems 13,851
Office and Other Equipment 2,367
------
TOTAL $27,512
======
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(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 $1,288
Municipal & Fuel- Motor Vehicle Excise 52
Use - Purchases 270
------
SUBTOTAL 1,610
------
2) U.S. GOVERNMENT TAXES
Federal Unemployment 100
Federal Insurance Contribution Act - Company 6,275
Miscellaneous (5)
------
SUBTOTAL 6,370
------
TOTAL $7,980
======
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(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
United Way Matching Gifts Program 78
St. John's Seminary Matching Gifts Program 5
Pine Street Inn Human Services Agency 4
Massachusetts Institute of
Technology Matching Gifts Program 6
Shriners Hospital Matching Gifts Program 3
Central Catholic High
School Matching Gifts Program 3
Miscellaneous (426 Items) Matching Gifts Program
(Each Vendor Under $3,000) for colleges, universities,
and other charitable
organizations 113
-----
TOTAL $221
=====
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
(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, 1995
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, 1995
<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, 1995
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>
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
As authorized by Commission's File No. 70-6353 and amendment No. 11 dated
August 18, 1995, New England Power Service Company included in its service
charge to customers for the year 1995 the amount of $165,492.00. The
following is a schedule indicating a breakdown of this billing:
<CAPTION>
Associated Non-Associated
Companies Companies Total
------------ ---------------- ---------
<S> <C> <C> <C>
Total Compensation $160,242 $ 5,250 $165,492
Excess of Revenues Billed
Over Costs Incurred to
Non-Associated Companies - - -
------- ------- ------
Compensation for Use of
Equity Capital Billed $160,242 $ 5,250 $165,492
======= ====== ======
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
(December 21, 1979) $ 1,350,000
Common Shares 75
-----------
$ 1,350,075
-----------
Amount of Equity return
January - December @ 11.25% $151,883
-----------
Capital Contribution from NEES
(December 29, 1995) $15,000,000
-----------
Amount of Equity Return
December 29 - 31 @ 11.25% $13,609
-----------
Total Amount of Equity Return $ 165,492
===========
</TABLE>
<PAGE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1995
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-31-1995
<PERIOD-END> DEC-31-1995
<PERIOD-TYPE> 12-MOS
<BOOK-VALUE> PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 18,037
<TOTAL-INVESTMENTS> 45,215
<TOTAL-CURRENT-ASSETS> 25,947
<TOTAL-DEFERRED-DEBITS> 8,529
<OTHER-ASSETS-AND-DEBITS> 0
<TOTAL-ASSETS-AND-DEBITS> 97,728
<TOTAL-PROPRIETARY-CAPITAL> 16,515
<TOTAL-LONG-TERM-DEBT> 0
<NOTES-PAYABLE> 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 0
<OTHER-CURR-AND-ACCRUED-LIAB> 25,962
<TOTAL-DEFERRED-CREDITS> 55,251
<DEFERRED-INCOME-TAX> 0
<TOTAL-LIABIL-AND-PROPRIET-CAP> 97,728
<SERVICES-ASSOCIATE-COMPANIES> 217,144
<SERVICES-NON-ASSOCIATE-COMP> 2,177
<MISC-INCOME-OR-LOSS> 0
<TOTAL-INCOME> 219,321
<SALARIES-AND-WAGES> 93,280
<EMPLOYEE-PENSION-AND-BENEFIT> 37,131
<OTHER-EXPENSES> 88,745
<TOTAL-EXPENSES> 219,156
<NET-INCOME> 165
<TOTAL-EXPENSES-DIRECT-COST> 178,739
<TOTAL-EXPENSES-INDIRECT-COST> 41,319
<TOTAL-EXP-DIRECT-AND-INDIRECT> 220,058
<PERSONNEL-END-OF-YEAR> 1,528
