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 April 1, 1994 to
Natick, MA 01760 June 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 June 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
nineteenth day of July 1994.
HEC Inc.
By /s/Linda A. Jensen
Vice President - Finance
EXHIBIT A
HEC INC.
BALANCE SHEET - JUNE 30, 1994
ASSETS
CURRENT ASSETS: 1994
---------
Cash and cash equivalents $918,329
Contract receivables, current,
less allowance for uncollectibles of $207,000 3,619,004
Other current assets 207,703
----------
Total current assets 4,745,035
----------
PROPERTY AND EQUIPMENT 3,601,664
Less accumulated depreciation and amortization 1,112,852
----------
Net property and equipment 2,488,812
----------
OTHER ASSETS:
Contract receivables, noncurrent,
less allowance for uncollectibles of $7,000 107,320
Other assets 33,654
----------
Total other assets 140,974
----------
TOTAL ASSETS $7,374,821
==========
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES:
Accounts Payable 979,192
Accrued Expenses 273,370
Accrued Income Taxes (175,584)
Short-Term Borrowing NU Moneypool 2,525,000
----------
Total current liabilities 3,601,978
----------
OTHER LIABILITIES:
Deferred income tax liability 360,434
Other 135,170
----------
Total other liabilities 495,604
----------
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 (1,038,598)
----------
Total stockholder's equity 3,277,239
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $7,374,821
===========
HEC INC.
STATEMENT OF OPERATION
FOR THE QUARTER ENDED JUNE 30, 1994
REVENUES $5,202,657
COST OF REVENUES 4,374,219
----------
Gross profit 828,438
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 706,662
----------
Operating income 121,776
----------
INTEREST INCOME (EXPENSE)
Interest income 53,581
Interest expense (26,964)
----------
26,617
----------
Income before income tax expense 148,393
INCOME TAX EXPENSE 59,080
Net Income (Loss) $89,313
==========
EXHIBIT B
HEC INC.
REPORT FOR APRIL 1 - JUNE 30, 1994
NARRATIVE DESCRIPTION OF SERVICES
Energy Management Services
HEC provided energy management services for approximately forty-one clients
within the Region and twenty-four 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 nine clients within the Region
and six 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 nine 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 general energy consulting on schools and hospitals for utilities and
design services for a university.
EXHIBIT C
HEC INC.
REPORT FOR APRIL 1 - JUNE 30, 1994
SUMMARY OF REVENUES
TYPE OF SERVICE WITHIN THE REGION OUTSIDE THE REGION TOTAL
============================================================================
Energy Mgmt. Services $4,372,422 $578,803 $4,964,333
Demand Side Management 60,484 154,888 215,372
- ----------------------------------------------------------------------------
Subtotal 4,432,906 733,691 5,166,597
- ----------------------------------------------------------------------------
Consulting 18,692 17,368 34,060
============================================================================
TOTAL REVENUES $5,202,657
============================================================================
