<PAGE>
February 23, 1994
VIA EDGAR
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Charter Oak Energy, Inc. Quarterly Report Relating to Charter Oak
Energy's Activities (File No. 70-8062)
Gentlemen:
Filed herewith pursuant to EDGAR, please find on behalf of Charter Oak
Energy, Inc., a Connecticut corporation ("Charter Oak"), and its
subsidiaries, enclosed for filing pursuant to Rule 24(a) under the Public
Utilities Holding Company Act of 1935, the quarterly report required to be
filed by Charter Oak relating to its activities and the activities of its
subsidiaries (HCAR. No. 25726; File No. 70-8062).
Please direct questions or comments regarding the enclosed filing to
the undersigned.
Very truly yours,
/s/ Eugene G. Vertefeuille
--------------------------
Eugene G. Vertefeuille
Enclosure
cc: Mr. Robert P. Wason
UNITED STATES
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 order reauthorizing and expanding the activities
of Charter Oak (HCAR. No. 25726; File No. 70-8062; December 30, 1992).
(1) BALANCE SHEET AS OF DECEMBER 31, 1993:
Attached as Exhibit A.
(2) INCOME STATEMENT FOR THE QUARTER ENDED DECEMBER 31, 1993:
Attached as Exhibit B.
(3) GENERAL DESCRIPTION OF THE ACTIVITIES OF CHARTER OAK FOR THE QUARTER
ENDED DECEMBER 31, 1993, AND OF THE PROJECTS IN WHICH CHARTER OAK OR
ITS SUBSIDIARIES HAVE AN INTEREST.
During the fourth quarter of 1993, pursuant to the permission
granted by the Commission in the December 30, 1992 order (HCAR. No. 25726),
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 and other independent power projects. 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. At
this time, none of these proposed facilities are sufficiently defined to
move beyond the preliminary development stage.
During the fourth quarter of 1993, Charter Oak and COE Development
spent $92,000 on administrative activities and $1,975,000 on preliminary
development activities respectively. For the twelve months ended December
31, 1993, Charter Oak and COE Development have spent $489,000 on
administrative activities and $6,719,000 on preliminary development
activities respectively. This includes preliminary development of domestic
projects as well as exploration of the potential for development of private
power projects abroad.
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 has a design capacity of 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 on the close of business on
September 30, 1993 by Charter Oak acquiring interests in two non-utility
subsidiary companies, COE (UK) Corp. and COE (GENCOE) Corp. Reference is
made to the October 8, 1993 Rule 24 Certificate in File No. 70-8084 for
further information concerning this transaction.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Public Utility Holding Company
Act of 1935, the undersigned 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
By: --------------------------
Eugene G. Vertefeuille
Principal
Charter Oak Energy, Inc.
34 Hopmeadow St.
P.O. Box 576
Simsbury, CT 06070-0576
February 24, 1994
<PAGE>5
EXHIBIT A
CHARTER OAK ENERGY, INC. AND SUBSIDIARIES
-----------------------------------------
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
---------------------------------------
<TABLE>
<CAPTION>
December 31,
---------------------------
1993 1992
------------ ------------
(Thousands of Dollars)
<S> <C> <C>
ASSETS
- ------
Utility Plant, at original cost:
Electric $ 52 $ 49
Less: Accumulated provision for
depreciation 43 34
------------ ------------
9 15
Construction work in progress 7 5
------------ ------------
Total net utility plant 16 20
------------ ------------
Other Investments, at cost 6,913 2,329
------------ ------------
Current Assets:
Cash 1,703 2,825
Taxes receivable 829 846
Receivables from affiliated companies 2,515 1,613
------------ ------------
5,047 5,284
------------ ------------
Deferred Charges:
Accumulated deferred income taxes 399 399
Other 5,122 2,725
------------ ------------
5,521 3,124
------------ ------------
Total Assets $ 17,497 $ 10,757
============ ============
CAPITALIZATION AND LIABILITIES
- ------------------------------
Capitalization:
Common stock $ - $ -
Capital surplus, paid in 22,958 14,300
Retained earnings (7,712) (4,614)
------------ ------------
Total capitalization 15,246 9,686
------------ ------------
Minority interest in common equity
of subsidiaries 41 -
------------ ------------
Current Liabilities:
Accounts payable 964 883
Accounts payable to affiliated companies 94 155
Taxes accrued 1,126 25
Other 26 8
------------ ------------
2,210 1,071
------------ ------------
Total Capitalization and Liabilities $ 17,497 $ 10,757
============ ============
</TABLE>
<PAGE>6
EXHIBIT B
CHARTER OAK ENERGY, INC. AND SUBSIDIARIES
-----------------------------------------
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
---------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
December 31,
---------------------------
1993 1992
------------ ------------
(Thousands of Dollars)
<S> <C> <C>
Operating Revenues $ - $ -
------------ ------------
Operating Expenses:
Operation and maintenance 2,707 2,971
Depreciation 93 2
Federal and state income taxes (1,023) (1,380)
Taxes other than income taxes 4 4
------------ ------------
Total operating expenses 1,781 1,597
------------ ------------
Operating Loss (1,781) (1,597)
------------ ------------
Other Income 602 249
------------ ------------
Loss before interest charges (1,179) (1,348)
------------ ------------
Interest Charges 1 1
------------ ------------
Net Loss $ (1,180) $ (1,349)
============ ============
</TABLE>
