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 January 1, 1994 to
Natick, MA 01760 March 31, 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 March 31, 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 eleventh day of May 1994.
HEC Inc.
By: Linda A. Jensen
Vice President - Finance
EXHIBIT A
HEC INC.
BALANCE SHEET - MARCH 31, 1994
ASSETS
CURRENT ASSETS: 1994
----------
Cash and cash equivalents $ 875,161
Contract receivables, current, less allowance
for uncollectibles of $640,000 2,769,165
Other current assets 217,386
----------
Total current assets 3,861,712
----------
PROPERTY AND EQUIPMENT 3,560,531
Less accumulated depreciation and amortization 1,014,647
----------
Net property and equipment 2,545,884
----------
OTHER ASSETS:
Contract receivables, noncurrent, less allowance
for uncollectibles of $48,000 1,155,000
Other assets 98,488
----------
Total other assets 1,253,488
----------
TOTAL ASSETS $7,661,084
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LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES:
Accounts Payable 1,171,203
Accrued Expenses 247,258
Accrued Income Taxes (12,829)
Short-Term Borrowing NU Moneypool 2,775,000
---------
Total current liabilities 4,180,632
---------
OTHER LIABILITIES:
Deferred income tax liability 160,444
Other 132,080
----------
Total other liabilities 292,524
----------
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 (1,127,909)
---------
Total stockholder's equity 3,187,928
---------
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $7,661,084
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HEC INC
STATEMENT OF OPERATION
FOR THE QUARTER ENDED MARCH 31, 1994
REVENUES $ 4,402,902
COST OF REVENUES 3,621,869
---------
Gross profit 781,033
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 672,467
-------
Operating income 108,566
-------
INTEREST INCOME (EXPENSE)
Interest income 37,160
Interest expense (24,294)
------
12,866
------
Income before income tax expense 121,432
INCOME TAX EXPENSE 48,648
------
Net Income (Loss) $72,784
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EXHIBIT B
HEC INC.
REPORT FOR JANUARY 1 - MARCH 31, 1994
NARRATIVE DESCRIPTION OF SERVICES
Energy Management Services
HEC provided energy management services for approximately twenty-five clients
within the Region and eighteen 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 two clients within the
Region and five 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 a non-affiliated New England
utility. Outside of the Region, HEC assisted two midwest utilities in the
design of demand side management programs and one West Coast utility in the
evaluation of demand side management installations. HEC also provided
services as a subcontractor in the evaluation of utility demand side
management programs.
Consulting Activities
HEC consulting activities within the Region consisted primarily of design and
specification of energy consuming equipment for six clients including
schools, hospitals, a bank and a sports facility and technical and general
administrative advice to two clients which provide energy services. Outside
of the Region, HEC provided design services to four school and hospital
clients.
EXHIBIT C
HEC INC.
REPORT FOR JANUARY 1 - MARCH 31, 1994
SUMMARY OF REVENUES
TYPE OF SERVICE WITHIN THE REGION OUTSIDE THE REGION TOTAL
Energy Management $3,578,754 $518,078 $4,096,832
Services
Demand Side Management 48,443 194,218 242,662
Subtotal 3,627,197 712,296 4,339,494
Consulting 44,005 19,404 63,409
TOTAL REVENUES $4,402,902
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