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, 1995 to
Natick, MA 01760 June 30, 1995
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, 1995. 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 twenty-fifth day of July 1995.
HEC Inc.
By:/s/Linda A. Jensen
Vice President - Finance
EXHIBIT A
HEC INC.
BALANCE SHEET - JUNE 30, 1995
ASSETS
CURRENT ASSETS: 1995
---------
Cash and cash equivalents $226,645
Contract receivables, current,
less allowance for uncollectibles of $227,000 5,088,252
Other current assets 197,226
----------
Total current assets 5,512,122
----------
PROPERTY AND EQUIPMENT 3,740,371
Less accumulated depreciation and amortization 1,511,936
----------
Net property and equipment 2,228,435
----------
OTHER ASSETS 66,692
TOTAL ASSETS $7,807,250
===========
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES:
Accounts Payable 2,330,284
Accrued Expenses 221,172
Accrued Income Taxes (90,431)
Short-Term Borrowing NU Moneypool 1,575,000
----------
Total current liabilities 4,036,025
----------
OTHER LIABILITIES:
Deferred income tax liability 401,271
Other 151,697
----------
Total other liabilities 552,968
----------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDER'S EQUITY
Common stock, $1 par value.
Authorized and issued 100 shares 100
Additional paid-in-capital 4,065,737
Foreign Currency Exchange (328)
Accumulated Deficit (847,252)
-----------
Total stockholder's equity 3,218,257
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $7,807,250
===========
HEC INC.
STATEMENT OF OPERATION
FOR THE QUARTER ENDED JUNE 30, 1995
REVENUES $6,290,436
COST OF REVENUES 5,416,523
----------
Gross profit 873,913
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 712,957
----------
Operating income 160,956
----------
INTEREST INCOME (EXPENSE)
Interest income 36,657
Interest expense (28,477)
----------
5,180
----------
Income before income tax expense 166,136
INCOME TAX EXPENSE 75,788
Net Income (Loss) $90,348
==========
EXHIBIT B
HEC INC.
REPORT FOR APRIL 1 - JUNE 30, 1995
NARRATIVE DESCRIPTION OF SERVICES
Energy Management Services
HEC provided energy management services for approximately thirty-two clients
within the Region and fifteen 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 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 nine clients including
schools, one hospital and two commercial facilities and technical and general
administrative advice to one client which provides energy services. Outside
of the Region, HEC provided design services for one architectural firm,
general energy consulting for municipal facilities, two hospitals and a
library and design services for a university.
EXHIBIT C
HEC INC.
REPORT FOR APRIL 1 - JUNE 30, 1995
SUMMARY OF REVENUES
TYPE OF SERVICE WITHIN THE REGION OUTSIDE THE REGION TOTAL
============================================================================
Energy Mgmt. Services $5,599,037 $450,502 $6,049,539
Demand Side Management 66,260 271 66,531
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Subtotal 5,665,297 450,773 6,116,070
- ----------------------------------------------------------------------------
Consulting 124,855 49,511 174,366
============================================================================
TOTAL REVENUES $6,290,436
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