UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Application of Northeast )
) CERTIFICATE PURSUANT TO
Utilities, Charter Oak Energy ) RULE 24 UNDER THE PUBLIC
) UTILITY HOLDING COMPANY ACT
Inc. and COE Development ) OF 1935
)
Corp. on Form U-1 )
)
(File No. 70-8062) )
Pursuant to the requirements of Rule 24 under the Public Utility Holding
Company Act of 1935, Charter Oak Energy, Inc. ("Charter Oak"), a wholly-owned
subsidiary of Northeast Utilities ("NU"), a registered holding company,
hereby files this quarterly report as required by the Securities and Exchange
Commission's supplemental order authorizing preliminary development
activities and financing related to such activities and to acquisitions of
interests in exempt wholesale generators ("EWGs") and foreign utility
companies ("FUCOs") by Charter Oak (HCAR. No. 25977, January 24, 1994, File
No. 70-8062; HCAR. No. 26116, September 2, 1994, File No. 70-8062; and HCAR. No.
26134, September 30, 1994, File No. 70-8062).
(1) BALANCE SHEET AS OF SEPTEMBER 30, 1994:
See Attached.
(2) INCOME STATEMENT FOR THE QUARTER ENDED SEPTEMBER 30, 1994:
See Attached.
(3) GENERAL DESCRIPTION OF THE ACTIVITIES OF CHARTER OAK FOR THE QUARTER
ENDED SEPTEMBER 30, 1994, AND OF THE PROJECTS IN WHICH CHARTER OAK OR ITS
SUBSIDIARIES HAVE AN INTEREST.
During the third quarter of 1994, pursuant to the permission granted by
the Commission in the December 30, 1992 (HCAR. No. 25726), January 24
(HCAR. No. 25977), September 2, 1994 (HCAR. No. 26116), and September 30, 1994
(HCAR. No. 26134) orders, Charter Oak, through its wholly-owned subsidiary
COE Development Corporation ("COE Development"), has participated in
preliminary development activities for potential qualifying cogeneration and
small power production facilities (collectively, "QFs"), independent power
projects ("IPPs"), EWGs, and FUCOs. These activities have been performed by
COE Development both on its own and with unaffiliated third parties. The
relationships between COE Development and such unaffiliated third parties
have been in the form of cost-sharing contractual arrangements and have not
involved the formation of corporations, partnerships, joint ventures or other
business entities.
On January 24, 1994, September 2, 1994, and September 30, 1994 the
Commission authorized NU to make investments in Charter Oak, and Charter Oak to
make investments in COE Development, in the amount of up to $100 million,
through December 30, 1994, for preliminary development activities and for
acquisitions of interests in QFs, EWGs, FUCOs, and IPPs. This authorization
includes preliminary development of domestic projects as well as investments in
EWGs and FUCOs.
COE Development is engaged in development activities associated with an
114 MW natural gas-fired project located in the Republic of Argentina.
Charter Oak, through its wholly-owned subsidiary Charter Oak (Paris),
Inc., pursuant to the permission granted by the Commission (HCAR. No. 24893),
has an approximately 10% beneficial equity ownership interest in a 213 MW
gas-fired operational qualifying cogeneration facility in Paris, Texas.
On September 24, 1993, NU was granted permission (HCAR. No. 70-8084) to
invest up to $7 million in Charter Oak for the purchase of an interest in two
non-utility subsidiaries to own an interest in a foreign utility company,
Encoe Partners. Encoe Partners is a general partnership formed for the sole
purpose of building, owning and operating a power generating facility in the
United Kingdom ("Power Plant") and acquiring a one-third interest in certain
rights and obligations under a power contract. The Power Plant is 2.176 MW
and will produce power by harnessing the pressure in the natural gas pipeline
feeding the 1,875 MW Teesside Project in Teesside, Wilton, Cleveland,
England. This transaction was completed by Charter Oak on the close of
business on September 30, 1993 by acquiring interests in two non-utility
subsidiary companies, COE (UK) Corp. and COE (GENCOE) Corp.
At this time, none of the other projects Charter Oak is currently pursuing
are sufficiently defined enough to move beyond the preliminary development
stage and therefore are not contained in this report.
SIGNATURE
Pursuant to the requirements of the Public Utility Holding Company Act
of 1935, the undersigned company has duly caused this Certificate to be
signed on its behalf by the undersigned thereunto duly authorized.
Charter Oak Energy, Inc.
/s/ Eugene G. Vertefeuille
Principal
Charter Oak Energy, Inc.
34 Hopmeadow Street
P.O. Box 576
Simsbury, CT 06070-0576
November 30, 1994
CHARTER OAK ENERGY, INC. AND SUBSIDIARIES
-----------------------------------------
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
---------------------------------------
September 30,
---------------------------
1994 1993
------------ ------------
(Thousands of Dollars)
ASSETS
- ------
Utility Plant, at original cost:
Electric $ 52 $ 52
Less: Accumulated provision for
depreciation 44 42
------------ ------------
Total net utility plant 8 10
------------ ------------
Other Investments, at cost 6,267 7,416
------------ ------------
Current Assets:
Cash 6,329 2,171
Receivables from affiliated companies 1 2,038
------------ ------------
6,330 4,209
------------ ------------
Deferred Charges:
Accumulated deferred income taxes 529 399
Deferred development costs 2,447 2,954
Other 858 1,059
------------ ------------
3,834 4,412
------------ ------------
Total Assets $ 16,439 $ 16,047
============ ============
CAPITALIZATION AND LIABILITIES
- ------------------------------
Capitalization:
Common stock $ - $ -
Capital surplus, paid in 25,236 22,050
Retained earnings (9,875) (6,532)
------------ ------------
Total capitalization 15,361 15,518
------------ ------------
Minority interest in common equity
of subsidiaries 48 129
------------ ------------
Current Liabilities:
Accounts payable 1 -
Accounts payable to affiliated companies 132 118
Taxes accrued 836 256
Other 61 26
------------ ------------
1,030 400
------------ ------------
Total Capitalization and Liabilities $ 16,439 $ 16,047
============ ============
CHARTER OAK ENERGY, INC. AND SUBSIDIARIES
-----------------------------------------
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
---------------------------------------------
Three Months Ended
September 30,
---------------------------
1994 1993
------------ ------------
(Thousands of Dollars)
Operating Revenues $ - $ -
------------ ------------
Operating Expenses:
Operation and maintenance 1,788 1,503
Depreciation 162 2
Federal and state income taxes (859) (565)
Taxes other than income taxes 7 5
------------ ------------
Total operating expenses 1,098 945
------------ ------------
Operating Loss (1,098) (945)
------------ ------------
Other Income:
Investment income 323 264
Other, net 17 9
------------ ------------
Total other income 340 273
------------ ------------
Loss before interest charges (758) (672)
------------ ------------
Interest Charges 2 1
------------ ------------
Loss before minority interest in earnings (760) (673)
in subsidary
Minority interest in earnings in subsidary (8) -
------------ ------------
Net Loss $ (752) $ (673)
============ ============
