UNITED STATES OF AMERICA
before the
SECURITIES AND EXCHANGE COMMISSION
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
In the matter of
HEC Inc. Report for Period
24 Prime Parkway July 1, 1994 to
Natick, MA 01760 September 30, 1994
Pursuant to Rule 24
File No. 70-8076
This report is filed under Rule 24 of the Public Utility Holding Company Act
of 1935 by HEC Inc.(HEC), a wholly owned subsidiary of Northeast Utilities, a
registered holding company. Pursuant to HCAR No. 35-25900 (the "Order"), HEC
is authorized to provide energy management and demand side management
services primarily to customers located in New England and New York (the
"Region") and to provide limited services outside of the Region. The Order
also authorizes HEC to provide consulting services. HEC is required to report
quarterly on services provided during the previous quarter. Accordingly,
this report includes the following information:
1. A summary balance sheet and an income statement (unaudited) for the
three-month period ended September 30, 1994. See Exhibit A.
2. A narrative description of HEC's energy management, demand side
management services, and consulting activities undertaken during the quarter
and the type of customers for which services were rendered in the Region and
outside the Region. See Exhibit B.
3. A summary of the revenues in the Region and outside of the Region
through HEC's provision of energy management services, demand side management
services, and consulting activities. See Exhibit C.
As requested by order of this Commission pursuant to the Public Utility
Holding Company Act of 1935, HEC has duly caused this report to be signed on
the thirteenth day of October 1994.
HEC Inc.
By:/s/Linda A. Jensen
Vice President - Finance
EXHIBIT A
HEC INC.
BALANCE SHEET - SEPTEMBER 30, 1994
ASSETS
CURRENT ASSETS: 1994
---------
Cash and cash equivalents $463,107
Contract receivables, current,
less allowance for uncollectibles of $228,000 4,433,127
Other current assets 183,801
----------
Total current assets 5,080,035
----------
PROPERTY AND EQUIPMENT 3,625,394
Less accumulated depreciation and amortization 1,211,057
----------
Net property and equipment 2,414,337
----------
OTHER ASSETS:
Contract receivables, noncurrent,
less allowance for uncollectibles of $7,000 98,500
Other assets 28,412
----------
Total other assets 126,912
----------
TOTAL ASSETS $7,621,284
===========
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES:
Accounts Payable 1,562,825
Accrued Expenses 364,129
Accrued Income Taxes (188,949)
Short-Term Borrowing NU Moneypool 2,075,000
----------
Total current liabilities 3,813,005
----------
OTHER LIABILITIES:
Deferred income tax liability 357,336
Other 138,260
----------
Total other liabilities 495,597
----------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDER'S EQUITY
Common stock, $1 par value.
Authorized and issued 100 shares 100
Additional paid-in-capital 4,315,737
Accumulated Deficit (1,003,154)
-----------
Total stockholder's equity 3,312,683
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $7,621,284
===========
HEC INC.
STATEMENT OF OPERATION
FOR THE QUARTER ENDED SEPTEMBER 30, 1994
REVENUES $5,513,122
COST OF REVENUES 4,865,519
----------
Gross profit 647,603
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 596,072
----------
Operating income 51,531
----------
INTEREST INCOME (EXPENSE)
Interest income 43,138
Interest expense (24,729)
----------
18,409
----------
Income before income tax expense 69,940
INCOME TAX EXPENSE 36,565
Net Income (Loss) $33,375
==========
EXHIBIT B
HEC INC.
REPORT FOR JULY 1 - SEPTEMBER 30, 1994
NARRATIVE DESCRIPTION OF SERVICES
Energy Management Services
HEC provided energy management services for approximately fifty-two clients
within the Region and nineteen clients outside of the Region. Services
included energy audits (the identification of energy and other resource cost
reduction opportunities); design of energy conservation measures including
energy efficient lighting, energy efficient motors, energy management
systems, heating, ventilating and air conditioning equipment retrofits,
variable speed drives; the management of and direct installation of energy
conservation equipment of the same type designed; assistance in identifying
and arranging third-party financing for project installations; training of
client personnel in the operation of installed equipment; system
commissioning and reporting of program results. The majority of these
services were performed in New York, Connecticut and Massachusetts in
schools, hospitals and other municipal facilities under utility-sponsored
programs. Energy management services outside of the region were also
provided primarily to schools and hospitals.
Demand Side Management Services
HEC provided demand side management services for three clients within the
Region and two clients outside of the Region. Services provided within the
Region consisted primarily of monitoring and/or evaluating the demand side
management programs and installations of non-affiliated New England
utilities. Outside of the Region, HEC assisted a West Coast and a Midwest
utility in the evaluation of demand side management installations.
Consulting Activities
HEC consulting activities within the Region consisted primarily of design and
specification of energy consuming equipment for six clients including
schools, a hospital and commercial facilities and technical and general
administrative advice to one client which provides energy services. Outside
of the Region, HEC provided design services for two architectural firms,
general energy consulting for municipal facilities, a hospital and an
insurance company, and design services for a university.
EXHIBIT C
HEC INC.
REPORT FOR JULY 1 - SEPTEMBER 30, 1994
SUMMARY OF REVENUES
TYPE OF SERVICE WITHIN THE REGION OUTSIDE THE REGION TOTAL
============================================================================
Energy Mgmt. Services $4,287,740 $975,553 $5,263,293
Demand Side Management 69,306 53,616 122,922
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Subtotal 4,357,046 1,029,169 5,386,215
- ----------------------------------------------------------------------------
Consulting 83,898 43,010 126,908
============================================================================
TOTAL REVENUES $5,513,122
============================================================================
