UNITED STATES OF AMERICA
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. 70-8507) )
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 supplemental order authorizing preliminary development
activities and financing related to such activities and to acquisitions of
interests in exempt wholesale generators ("EWGs") and foreign utility
companies ("FUCOs") by Charter Oak (HCAR. No. 26134, September 30, 1994, File
No. 70-8062 and HCAR. No. 26213, December 30, 1994, File No. 70-8507).
(1) BALANCE SHEET AS OF MARCH 31, 1995:
Attached as Exhibit A.
(2) INCOME STATEMENT FOR THE QUARTER ENDED MARCH 31, 1995:
Attached as Exhibit B.
(3) GENERAL DESCRIPTION OF THE ACTIVITIES OF CHARTER OAK FOR THE QUARTER
ENDED MARCH 31, 1995, AND OF THE PROJECTS IN WHICH CHARTER OAK OR ITS
SUBSIDIARIES HAVE AN INTEREST:
During the first quarter of 1995, pursuant to the permission granted by
the Commission in the September 30, 1994 (HCAR. No. 26134) and December 30, 1994
(HCAR. No. 26213) orders, Charter Oak, through its wholly-owned subsidiary COE
Development Corporation ("COE Development"), has participated in preliminary
development activities for EWGs and FUCOs. These activities have been performed
by COE Development both on its own and with unaffiliated third parties.
On December 30, 1994 the Commission authorized NU to make investments in
Charter Oak, and Charter Oak to make investments in COE Development, in the
amount of up to $200 million, through December 31, 1996, for preliminary
development activities and for acquisitions of interests in EWGs and FUCOs.
This authorization includes preliminary development of domestic projects as well
as investments in EWGs and FUCOs.
COE Development is engaged in constructing a 114 MW natural gas-fired
project (Central Termica San Miguel de Tucuman, S.A., "CTSMT") located in the
Republic of Argentina and plans to begin construction of a 20 MW wind project
in Costa Rica in the spring of 1995.
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 is 2.176 MW.
It produces 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 by Charter Oak on the close of
business on September 30, 1993 by acquiring interests in two non-utility
subsidiary companies, COE (UK) Corp. and COE (GENCOE) Corp.
At this time, none of the other projects Charter Oak is currently pursuing
are sufficiently defined to move beyond the preliminary development stage and
therefore are not contained in this report.
(4) THE AMOUNTS OF RECOURSE AND NON-RECOURSE DEBT SECURITIES ISSUED TO THIRD
PARTIES BY INTERMEDIATE COMPANIES:
N.A.
(5) REGULATORY STATUS OF FACILITIES ELIGIBLE FOR EXEMPTION AS A PUBLIC UTILITY
UNDER THE ACT.
On March 3, 1995, the Argentinian company ("CTSMT") filed a Form U-57
notifying the Commission of foreign utility company status.
(6) INFORMATION ON INTERCOMPANY SERVICE TRANSACTIONS INVOLVING AFFILIATED
INTERMEDIATE COMPANIES, EWGS AND FUCOs FOR THE QUARTER ENDING MARCH 31,
1995.
Attached as Exhibit C.
The aggregate amount of all guarantees issued by or for Charter Oak or any
of its subsidiary companies for the quarter ending March 31, 1995 is
approximately $60,000.
SIGNATURE
Pursuant to the requirements of the Public Utility Holding Company Act
of 1935, the undersigned company 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
Principal
Charter Oak Energy, Inc.
P.O. Box 270
Hartford, CT 06141-0270
May 25, 1995
CHARTER OAK ENERGY, INC. AND SUBSIDIARIES Exhibit A
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
---------------------------------------
March 31,
---------------------------
1995 1994
------------ ------------
(Thousands of Dollars)
ASSETS
- ------
Utility Plant, at original cost:
Electric $ 52 $ 52
Less: Accumulated provision for
depreciation 46 43
------------ ------------
Total net utility plant 6 9
------------ ------------
Other Investments, at cost 15,419 6,634
------------ ------------
Current Assets:
Cash 479 1,565
Taxes receivable - 1,950
------------ ------------
479 3,515
------------ ------------
Deferred Charges:
Accumulated deferred income taxes 690 399
Deferred development costs 2,641 3,587
Other 795 573
------------ ------------
4,126 4,559
------------ ------------
Total Assets $ 20,030 $ 14,717
============ ============
CAPITALIZATION AND LIABILITIES
- ------------------------------
Capitalization:
Common stock $ - $ -
Capital surplus, paid in 31,367 22,958
Retained earnings (12,859) (8,780)
------------ ------------
Total capitalization 18,508 14,178
------------ ------------
Minority interest in common equity
of subsidiaries 60 27
------------ ------------
Current Liabilities:
Accounts payable 555 259
Accounts payable to affiliated companies 374 165
Taxes accrued 375 62
Other 158 26
------------ ------------
1,462 512
------------ ------------
Total Capitalization and Liabilities $ 20,030 $ 14,717
============ ============
EXHIBIT B
CHARTER OAK ENERGY, INC. AND SUBSIDIARIES
-----------------------------------------
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
---------------------------------------------
Three Months Ended
March 31,
---------------------------
1995 1994
------------ ------------
(Thousands of Dollars)
Operating Revenues $ - $ -
------------ ------------
Operating Expenses:
Operation and maintenance 1,254 1,638
Depreciation 165 232
Federal and state income taxes (634) (759)
Taxes other than income taxes 5 6
------------ ------------
Total operating expenses 790 1,117
------------ ------------
Operating Loss (790) (1,117)
------------ ------------
Other Income:
Investment income 417 23
Other, net 5 27
------------ ------------
Total other income 422 50
------------ ------------
Loss before interest charges (368) (1,067)
------------ ------------
Interest Charges 2 1
------------ ------------
Net Loss $ (370) $ (1,068)
============ ============
Charter Oak Energy and Subsidiaries Exhibit C
Detail of Intercompany Services
First Quarter Ending March 31, 1995
Charter Oak Energy
<TABLE>
<CAPTION>
NON-
Service Provided By-- Type of Services Provided-- PAYROLL PAYROLL TOTAL
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
Charter Oak staff 151,741 73,957 225,698
NUSCO Accounting and financial services 15,482 25 15,507
Legal services 4,041 3,887 7,928
Miscellaneous 1,738 393 2,131
---------------------------
Total NUSCO Services 173,002 78,262 251,264
---------------------------
Total Services Provided 173,002 78,262 251,264
===========================
COE Development Corp
NON-
Service Provided By-- Type of Services Provided-- PAYROLL PAYROLL TOTAL
- -------------------------------------------------------------------------------------
Charter Oak staff 198,544 131,460 330,004
NUSCO Engineering services 38,021 4,273 42,294
Accounting and financial services 1,228 0 1,228
Miscellaneous 369 447 816
---------------------------
Total NUSCO Services 238,162 136,180 374,342
CL&P Engineering services 2,329 874 3,203
---------------------------
Total CL&P Services 2,329 874 3,203
WMECO Engineering services 625 22 647
---------------------------
Total WMECO Services 625 22 647
---------------------------
Total Services Provided 241,116 137,076 378,192
---------------------------
COE (UK) Corp.
NON-
Service Provided By-- Type of Services Provided-- PAYROLL PAYROLL TOTAL
- -------------------------------------------------------------------------------------
Charter Oak staff 5,342 1,791 7,133
NUSCO Accounting and financial services 745 37 782
---------------------------
Total NUSCO Services 6,087 1,828 7,915
---------------------------
Total Services Provided 6,087 1,828 7,915
---------------------------
</TABLE>
