FILE NO.: 70-8062
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________
POST-EFFECTIVE AMENDMENT NO. 9
TO THE
FORM U-1
APPLICATION AND DECLARATION
UNDER THE
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
___________________________________
NORTHEAST UTILITIES
174 Brush Hill Avenue
West Springfield, Massachusetts 01089
CHARTER OAK ENERGY, INC.
COE DEVELOPMENT CORPORATION
107 Selden Street
Berlin, CT 06037-1616
(Name of company filing this statement
address of principal executive offices)
NORTHEAST UTILITIES
(Name of top registered holding
Company parent of each applicant or declarant)
Jeffrey C. Miller, Esq.
Assistant General Counsel
NORTHEAST UTILITIES SERVICE COMPANY
P.O. Box 270
Hartford, Connecticut 06141-0270
(Name and address of agent for services)
The Commission is requested to mail copies of
all orders, notices and communications to:
William S. Lamb, Esq. Jeffrey C. Miller, Esq.
LeBoeuf, Lamb, Greene & MacRae Assistant General Counsel
125 W. 55th Street NORTHEAST UTILITIES SERVICE COMPANY
New York, New York 10019-4513 P.O. Box 270
Hartford, Connecticut 06141-0270
Northeast Utilities ("NU"), West Springfield, Massachusetts, a
registered holding company, and its wholly owned subsidiaries, Charter Oak
Energy, Inc. ("Charter Oak") and COE Development Corporation ("COE
Development"), both located in Berlin, Connecticut, (collectively the
"Applicants") hereby file this post-effective amendment to their
Application and Declaration on Form U-1 (HCAR. 25726; December 30, 1992;
File No. 70-8062), previously amended on January 24, 1994 (HCAR 25977; File
No. 70-8062). The Applicants are filing this post-effective amendment in
order to request authority to issue guarantees and assume the liabilities
of subsidiary companies in connection with the financing of development
activities and in connection with contingent liabilities subsequent to
operation for certain exempt wholesale generator ("EWG") and foreign
utility company ("FUCO") projects.
In the order that was issued to the Applicants on January 24,
1994 (HCAR 25977; File No. 70-8062) (the "January 1994 Order") following
the filing of Post-Effective Amendment No. 6 to their Application and
Declaration on Form U-1, the Applicants were granted authority to engage in
preliminary development and financing activities, including the issuance of
guarantees and assumption of liabilities of subsidiary companies, in
amounts up to $100 million through December 31, 1994 as long as such
activities are carried out in accordance with the terms of the Public
Utility Holding Company Act of 1935 (the "Act") and the rules promulgated
thereunder. In the January 1994 Order, the Commission reserved
jurisdiction over the issue for which authority is being requested in this
amendment as well as an additional issue for which authority is not being
requested in this amendment.
In order to request authority for the Applicants to issue guarantees
and assume liabilities in connection with development activities and in
connection with contingent liabilities subsequent to commencement of
operation only for projects in which the Applicants can acquire an interest
without prior Commission approval ("Exempt Projects")<F1>
____________________
<F1> For purposes of this Amendment, the term Exempt Projects
shall include FUCOs only to the extent that Commission
approval for the acquisition or financing of any such entity
by the Applicants is not required under the Act and
applicable rules and regulations thereunder as then in
effect.
under the Energy Policy Act of 1992 ("EPA"), the Applicants hereby amend
and restate paragraph C of Item 1 of Post-Effective Amendment No. 6 as
follows:
Item 1. Description of Proposed Transaction
C. Request for Expansion of Authority for Activities Relating
to Preliminary Development, Development and Operation
Pursuant to the January 1994 Order, the Applicants received
authority to expand the scope of their permissible preliminary development
activities to permit them to issue guarantees and assume the liabilities of
subsidiary companies.<F2>
____________________
<F2> Such guarantees and assumptions of liabilities may include
bid bonds, earnest money, reimbursement obligations to
parties providing letters of credit, performance bonds
and material and payment bonds.
In accordance with the terms of this order, any guarantees and
assumptions of liability made for projects requiring prior Commission
approval ("Non-Exempt Projects") will be limited to preliminary development
activities and will not include guarantees relating to construction
financing or permanent financing. The total value of such guarantees and
assumptions of liability outstanding at any time will not exceed $20
million. The term of any such guarantee or assumption of liability will
not exceed five years. Until such time as there is no possibility of a
claim against Charter Oak or Northeast, the full contingent amount of any
guarantees or assumptions of liabilities will be counted as part of the
authorized development activities limit authorized in the January 1994
Order.
Similarly, in connection with Exempt Projects, the full
contingent amount of guarantees and assumptions of liability made for
preliminary development activities for EWGs and FUCOs will be counted as
part of the development activities limit authorized in the January 1994
Order.
The Applicants hereby seek authority under Rule 53 of the Act, as
promulgated in the EPA, to issue guarantees and assume the liabilities of
subsidiary companies for development activities, including construction and
permanent financing, and for contingent liabilities subsequent to operation
with regard to Exempt Projects. Charter Oak has found that on occasion
such guarantees and assumptions of liability may provide them with
opportunities to participate in private power opportunities on a favorable
basis without expending funds.
Again, until such time as there is no possibility of a claim
against Charter Oak or NU, the full contingent amount of any of the
guarantees and assumptions of liability, the authority for which is being
requested hereunder, will be counted as part of the $100 million investment
activities limit authorized in the January 1994 Order.
Furthermore, Charter Oak Energy, Inc. hereby agrees to file with
the Commission, on or before May 1 of each year, an annual report of its
activities for the preceding calendar year using, where applicable, the
Form U-13-60 reporting format as defined in Rule 94.
Item 5 Procedure
On March 18, 1994, the Commission issued and published the
requisite notice under Rule 23 with respect to the filing of this request
for authority and no intervention occurred within the specified period.
Consequently, we hereby request that the Commission enter not later than
September 9, 1994 an appropriate order granting and permitting this
Amendment to become effective.
Applicants respectfully request that appropriate and timely
action be taken by the Commission in this matter. Applicants hereby waive
any recommended decision by a hearing officer or by any other responsible
officer of the Commission and waive the 30-day waiting period between
issuance of the Commission's order and the date on which it is to become
effective, since it is desired that the Commission's order, when issued,
become effective forthwith, Applicants hereby consent to the Office of
Public Utility Regulation within the Division of Investment Management
assisting in the preparation of the Commission's decision and/or order
unless the Office opposes the transactions covered by this Amendment.
SIGNATURE
Pursuant to the requirements of the Public Utility Holding
Company Act of 1935, the undersigned companies have duly caused this
Amendment to be signed on their behalf by the undersigned thereunto duly
authorized.
NORTHEAST UTILITIES
CHARTER OAK ENERGY, INC.
COE DEVELOPMENT CORPORATION
By: /s/
_______________________________
William S. Lamb
LeBoeuf, Lamb, Greene & MacRae,
A Partnership Including
Professional Corporations
125 W. 55th Street
New York, NY 10019-4513
Attorney for Northeast Utilities, Charter Oak
Energy, Inc. and COE Development Corporation
Date: August 31, 1994
