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Previous: NORSTAN INC, 8-K, 1996-06-19 |
Next: PARKER HANNIFIN CORP, 8-K, 1996-06-19 |
FILE NO. 70-
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM U-1
APPLICATION/DECLARATION WITH RESPECT TO (1) PROPOSED REVOLVING CREDIT
FACILITY FOR NORTHEAST UTILITIES ("NU"), THE CONNECTICUT LIGHT AND POWER
COMPANY ("CL&P") AND WESTERN MASSACHUSETTS ELECTRIC COMPANY ("WMECO")
AND (2) INCREASES AND EXTENSIONS OF SHORT-TERM BORROWING LIMITS OF NU,
CL&P, WMECO, PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE,
HOLYOKE WATER POWER COMPANY AND NORTH ATLANTIC
ENERGY CORPORATION
UNDER
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
Northeast Utilities The Connecticut Light
Western Massachusetts Electric Company and Power Company
174 Brush Hill Avenue 107 Selden Street
West Springfield, MA 01090-0010 Berlin, CT 06037
Holyoke Water Power Company Public Service Company of New Hampshire
Canal Street North Atlantic Energy Corporation
Holyoke, MA 01040 1000 Elm Street
Manchester, NH 03015
(Name of companies filing this statement and addresses of principal
executive offices)
NORTHEAST UTILITIES
(Name of top registered holding company)
Robert P. Wax, Esq.
Vice President, Secretary and General Counsel
Northeast Utilities Service Company
107 Selden Street
Berlin, CT 06037
(Name and address of agent for service)
The Commission is requested to mail signed copies of all orders, notices and
communications to
<TABLE>
<S> <S> <S>
Jeffrey C. Miller, Esq. David R. McHale Richard C. MacKenzie, Esq.
Assistant General Counsel Assistant Treasurer - Finance Day, Berry & Howard
Northeast Utilities Service Company Northeast Utilities Service Company CityPlace I
107 Selden Street 107 Selden Street Hartford, CT 06103-3499
Berlin, CT 06037 Berlin, CT 06037
</TABLE>
<PAGE>
ITEM 1
DESCRIPTION OF PROPOSED TRANSACTIONS
Introduction
1. Northeast Utilities ("NU"), a public utility holding company
registered under the Public Utility Holding Company Act of 1935, as amended
(the "Act"), and The Connecticut Light & Power Company ("CL&P"), Western
Massachusetts Electric Company ("WMECO"), Public Service Company of New
Hampshire ("PSNH"), Holyoke Water Power Company ("HWP") and North Atlantic
Energy Corporation ("NAEC"), each of which is a wholly-owned subsidiary of NU
(each of NU, CL&P, WMECO, PSNH, HWP and NAEC are sometimes herein called an
"Applicant," and collectively all such companies are herein called
"Applicants") submit this application/declaration (the "Application") pursuant
to Sections 6(a), 7, 9(a), 10 and 12 of the Act and Rules 43 and 45 thereunder
with respect to (a) certain transactions related to the issuance of notes by
NU, CL&P and WMECO to evidence borrowings under a new revolving credit facility
(the "Facility") aggregating up to $450 million and (b) an increase and
extension to December 31, 2000 of the respective short-term borrowing limits of
the Applicants.
The Facility
2. NU, CL&P and WMECO (sometimes, in the context of the Facility,
called individually a "Borrower" and collectively "Borrowers") seek
authorization to enter into a revolving credit agreement pursuant to which the
Borrowers will be permitted to borrow from time to time, for a period of no
more than 270 days, from one or more commercial banks or other lending
institutions (the "Lenders") up to $450 million in the aggregate through a
period ending three years after the closing date of the agreement. Each
Borrower will have its own maximum borrowing limit under the Facility as
follows: NU ($200 million), CL&P ($375 million) and WMECO ($150 million).
Except in the circumstances described below, the Facility will replace
the existing revolving credit facilities approved by the Commission in File No.
70-8052, Northeast Utilities et al , HCAR No. 35-25683 (November 23, 1992) and
HCAR No. 35-26405 (November 9, 1995). The existing revolving credit facilities
are documented by separate agreements between NU, CL&P, WMECO, HWP, Northeast
Nuclear Energy Company ("NNECO") and Rocky River Realty Company ("RR") and
various banks. The Applicants believe that one or more of those banks may wish
to continue to lend to such borrowers under its existing agreements rather than
become lenders under the Facility. In that event, any such bank would not be a
lender under the Facility unless and until its existing revolving credit
agreements are terminated.
3. The Facility will be used to repay outstanding borrowings and
for working capital and other corporate purposes, and will serve as a back-up
line of credit for NU's, CL&P's and WMECO's commercial paper programs and as a
source of funds for NU to borrow and "on-lend" to certain of its subsidiaries
through the NU system money pool, as described below (the "Money Pool"). A
primary reason for the Facility, which increases the maximum availability under
the existing revolving credit facilities by $107.5 million, is to ensure that
NU, CL&P and WMECO will have access to adequate cash resources, at a reasonable
cost, if the current nuclear plant outages in the NU system extend beyond April
1997.
4. The Borrowers will pay interest on any borrowings under the
Facility at a rate determined, at their election, by reference to the base rate
of certain reference banks, the federal funds rate, or the London interbank
offering rate ("LIBOR") for the applicable one, two, three or six-month
interest period chosen by the Borrower (the "LIBOR rate"), in each case plus a
margin. The amount of the margin will depend on the lower of Standard & Poor's
or Moody's rating of the Borrower's long-term senior debt. In no event, will
the margin exceed 1% above the base rate, 1 1/2 % above the federal funds rate,
or 2% above the LIBOR rate, unless the loan is in default. The Borrowers may
also borrow at interest rates determined by a competitive bid auction among the
Lenders. If a Borrower so elects, the competitive bid auction agent will
notify all of the Lenders of a requested loan amount, the date the loan will
begin, and the maturity, which may be from 30 to 270 days, and request that
each of those Lenders provide a quote for such a loan. The Borrower may then
choose to accept or reject any quotes it receives. The Borrowers will also pay
the Lenders an annual facility fee based on each Lender's pro-rata share
of the total loan commitment amount, whether the commitment is used or unused.
The amount of the fee paid by each Borrower will depend on the Standard &
Poor's and Moody's ratings of such Borrower, but will not exceed .75%. The
administrative agent under the Facility will be a commercial bank, initially
Citibank, N.A., which will be paid an agency fee of not more than $50,000 per
annum. The revolving credit agreement, the form of which will be filed by
amendment as Exhibit B.1 hereto, will include other terms and conditions,
including financial covenants and fees, that are customary in revolving credit
agreements. A summary of the preliminary principal terms and conditions is set
forth in Exhibit B.2 hereto. The final terms will be set forth in the credit
agreement to be filed as Exhibit B.1 hereto.
5. Loans under the Facility will be unsecured, will be evidenced by
promissory notes and will be used as described in paragraph 3. However, if a
Borrower in the future incurs any secured indebtedness or secures any
outstanding indebtedness which is now unsecured, such Borrower must cause the
Facility to be secured equally and ratably with such other indebtedness.
Short-Term Borrowing Limits
6. NU, CL&P and WMECO also seek authorization to increase their
short-term borrowing limits as set forth below and to extend them until
December 31, 2000. The maximum aggregate short-term borrowing limit of each of
the Applicants was authorized by the Commission in File No. 70-8479, Northeast
Utilities et al, HCAR No. 35-26207 (December 28, 1994). The present maximum
borrowing limit is $150 million for NU, $325 million for CL&P, and $60 million
for WMECO. Because the borrowing needs of NU, CL&P and WMECO during the
remainder of 1996 and over the following four years may exceed the above
authorized limits, NU, CL&P and WMECO seek to increase their short-term maximum
borrowing limits to $200 million, $375 million and $150 million, respectively.
As is currently authorized by the Commission, short-term borrowings will be in
the form of short-term notes ("Short-Term Notes") issued to bank and non-bank
lending institutions through formal and informal credit lines, commercial paper
("Commercial Paper"), open account advances by NU to certain of its
subsidiaries and continued use of the Money Pool.
7. PSNH seeks authorization to extend until December 31, 2000 its
present short-term borrowing authorization of $225 million to the extent not
otherwise authorized by an order of the New Hampshire Public Utilities
Commission ("NHPUC") sufficient to trigger the exemptive provisions of Rule 52
under the Act. The present maximum borrowing limit for PSNH was authorized by
the NHPUC in an Order Nisi dated February 28, 1996 in connection with its
approval of the PSNH revolving credit facility referred to in paragraph 29 (the
"PSNH Facility"). This NHPUC authorization expires on May 14, 1997. PSNH did
not seek Commission approval of its present borrowing limit by virtue of the
exemption provided by Section 6(b) of the Act and Rule 52 thereunder. PSNH
undertakes to obtain any other short-term debt authorization required under New
Hampshire law as and when necessary.
8. HWP and NAEC seek authorization to extend until December 31,
2000 their present short-term borrowing authorization of $5 million and $50
million, respectively. HWP and NAEC will not be a party to the new Facility,
but instead will meet their short-term borrowing needs through the Money Pool
as described in paragraphs 13 through 19 below.
9. NNECO, The Quinnehtuk Company ("Quinnehtuk"), RR and HEC Inc.
("HEC") (collectively the "Non-Applicant Companies") are wholly owned
subsidiaries of NU and not applicants herein by virtue of the exemption
provided by Rule 52 under the Act.
10. The short-term borrowing authorization of each Applicant (other
than PSNH) expires on December 31, 1996. The short-term borrowing
authorization of PSNH obtained from the NHPUC expires on May 14, 1997 as set
forth in paragraph 7 above. The Applicants seek the Commission's authorization
to permit short-term borrowing up to the maximum limits set forth in paragraph
11 until December 31, 2000. Although the Applicants might have waited until
later in 1996 to extend their short-term borrowing authorization, the
Applicants determined that it would be less costly and more efficient to
combine the increase and extension of borrowing limits in a single application
at this time.
Current and Projected Levels of Short-Term Debt
11. The following table sets forth: (i) the outstanding short-term
debt of each Applicant as of May 31, 1996; (ii) the highest level of short-term
debt outstanding for each Applicant during the period June 1, 1995 to June 1,
1996; and (iii) the maximum aggregate amount of all short-term debt proposed to
be outstanding at any one time at or prior to December 31, 2000:
<TABLE>
<CAPTION>
OUTSTANDING SHORT-TERM DEBT
(Thousands of Dollars)
<S> <C> <C> <C> <C>
Proposed Maximum
Actual Highest Level Effective Date Current Limit
5/31/96 6/1/95-6/1/96 12/31/2000{1}
NU $ 53,275 $112,625 $200,000 $150,000
CL&P (94,000) 186,900 375,000 325,000
WMECO 800 40,000 150,000{2} 60,000
PSNH 46,650 67,650 225,000 225,000
HWP (8,750) (4,500) 5,000 5,000
NAEC (41,500) 19,000 50,000 50,000
</TABLE>
(1) Includes, but not limited to, contingencies associated with such
uncertainties as (a) short-term debt level variances during a
given month, (b) the possibility that CL&P and WMECO may be
required to incur costs in the event the Niantic Bay Fuel Trust
is not available for funding fuel for the nuclear units, (c) the
retirement by WMECO of certain Dutch Auction Rate Transferrable
Securities ("DARTS") and (d) potential additional funding needs
by NU for Charter Oak Energy, Inc. ("Charter Oak") and future
telecommunications and other diversification projects.
(2) See paragraph 28 regarding the limitations on short-term debt
imposed by WMECO's preferred stock.
12. Subject to the applicable maximum limits, the Applicants intend
to renew and extend current short-term borrowings as they mature, to refund
such short-term borrowings with other similar short-term borrowings, to repay
such short-term borrowings or to increase the amount of their short-term
borrowings from time to time. As described in more detail in paragraphs 30
through 33 below, the proceeds of such borrowings will be used to meet part of
the capital and operating requirements of the respective Applicants.
Money Pool
13. The Applicants propose to continue using the Money Pool, which
is administered on their behalf by Northeast Utilities Service Company
("NUSCO") under the direction of an officer in the NUSCO Treasury Organization.
The Money Pool currently consists principally of surplus funds that may be
available from day to day to the Applicants, including NU. The funds
available to the Money Pool will be loaned on a short-term basis to those
Applicants, other than NU, and to the Non-Applicant Companies, that have a need
for short-term funds, subject to certain limitations described therein. If no
such short-term needs match the amount of funds that are available for the
period such funds are available, the funds in the Money Pool will be
invested directly or indirectly through investment funds in:
(a) obligations issued or guaranteed by the United States of
America;
(b) obligations issued or guaranteed by any entity controlled,
sponsored by, or supervised by and acting as an instrumentality
of the United States of America pursuant to authority granted by
the Congress of the United States, including but not limited to
the obligations of the Government National Mortgage Association
(GNMA), Student Loan Marketing Association (SLMA), Federal Home
Loan Mortgage Corporation (FHLMC) and Federal National Mortgage
Association (FNMA);
(c) obligations issued or guaranteed by any state or political
subdivision thereof, provided that such obligations are rated
for investment purposes at not less than "A" by Moody's
Investors Service, Inc. ("Moody's") or by the Standard & Poor's
Rating Group ("S&P");
(d) certificates of deposit issued or banker's acceptances drawn on
and accepted by commercial banks which are members of the
Federal Deposit Insurance Corporation and which have a combined
capital, surplus and undistributed profits of at least
$100,000,000;
(e) commercial paper rated not less than "P-1" by Moody's or not
less than "A-1" by S&P;
(f) repurchase agreements with any commercial or investment bank
secured by obligations issued or guaranteed by the United States
of America or an instrumentality thereof provided collateral is
held by a third party; and
(g) such other instruments as are permitted by Rule 40(a)(1) under
the Act and approved by the Massachusetts Department of Public
Utilities (the "DPU") pursuant to Massachusetts General Laws
Chapter 164, Section 17A and the regulations thereunder.
14. In addition to surplus funds, funds borrowed by NU through the
issuance of the Short-Term Notes, by selling commercial paper or by borrowing
under the Facility described in paragraphs 2 to 5 above are a source of funds
for making open account advances to certain of its subsidiaries through the
Money Pool. NU requests that its authority for such borrowings be extended
through December 31, 2000. The potential recipients of such open account
advances will be PSNH, NAEC, HWP, NNECO, Quinnehtuk, RR and HEC.{1} Such
arrangements have in the past resulted in a reduction in borrowing costs to the
recipients because NU has access to funds at lower interest rates than the
subsidiaries listed above and/or because the transaction costs of arranging
several small financings to meet the needs of the smaller subsidiaries are
higher than the costs of arranging one larger financing by NU. The amounts to
be borrowed by NU for the purpose of making open account advances and to be
borrowed through the Money Pool by the Applicants and Non-Applicant Companies
will also be subject to the short-term limits on the aggregate amount
outstanding for which approval is sought in this filing.
15. NAEC and HEC will be entitled to borrow through the Money Pool
only if and to the extent that funds in the Money Pool attributable to
contributions of surplus funds from or borrowings by NU are available for such
borrowings. PSNH will not be entitled to borrow funds through the Money Pool
that are attributable to contributions from WMECO unless and until the
DPU has issued an order authorizing WMECO to lend funds to PSNH through the
Money Pool. PSNH's participation in the Money Pool is only expected to be used
as a back-up to the PSNH Facility referred to in paragraphs 7 and 29. Since
the PSNH Facility requires PSNH to borrow a minimum of $10 million for each
contract borrowing and $5 million for each competitive borrowing, PSNH's
participation in the Money Pool permits it to borrow smaller amounts
through the Money Pool and thereby better match its requirements and its cash
resources.
16. The Applicants request that the Commission reserve jurisdiction
over any PSNH borrowings of Money Pool funds attributable to contributions
thereto by WMECO until such time as the DPU has issued an order authorizing
such borrowings. Without such an order, WMECO may not lend money to PSNH
through the Money Pool. In the event that such an order is received from the
DPU, the Applicants will file a post-effective amendment hereto seeking the
necessary Commission approval.
17. Money Pool transactions will be designed to match, on a daily
basis, the available cash and short-term borrowing requirements of the
Applicants, thereby minimizing the need for short-term borrowings to be made by
the Applicants (other than NU) from external sources. To this end, it is
anticipated that the short-term borrowing requirements of the Applicants (other
than NU) will be met, in the first instance, with the proceeds of borrowings
available through the Money Pool, and thereafter, to the extent necessary, with
the proceeds of external short-term borrowings, as described below. Those
participants in the Money Pool without access to the commercial paper market
will have priority as borrowers from the Money Pool, and only PSNH, NAEC, HWP,
NNECO, Quinnehtuk, RR and HEC will be eligible to borrow through the Money
Pool from the proceeds of external borrowings by NU. If at any time there are
funds remaining in the Money Pool after satisfaction of the borrowing needs of
the borrowers, NUSCO, as agent for the Money Pool, will invest those funds as
described in paragraph 13 and allocate the earnings on any such investments
among the Money Pool participants, providing such excess funds on a pro rata
basis according to the amount of the funds so provided.
18. All borrowings from and contributions to the Money Pool,
including the open account advances, will be documented and will be evidenced
on the books of each participant that is borrowing from or contributing surplus
funds to the Money Pool. Any participant contributing funds to the Money Pool
may withdraw those funds at any time without notice to satisfy its daily need
for funds. Except for loans from the proceeds of external borrowings by
NU, all loans will be payable on demand, may be prepaid by any borrowing
participant at any time without premium or penalty and will bear interest for
both the borrower and lender, payable monthly, equal to the daily Federal Funds
Effective Rate as quoted by the Federal Reserve Bank of New York. Loans from
the proceeds of external borrowings by NU will bear interest at the same rate
paid by NU on its borrowings, and no such loans may be prepaid unless NU is
made whole for any additional costs that may be incurred because of such
prepayment. NU will be fully reimbursed for all costs that it incurs in
relation to loans made to the other participants.
19. The Applicants believe that the cost of the proposed borrowings
through the Money Pool will generally be more favorable to the borrowing
Applicants than the comparable cost of external short-term borrowings, and that
the yield to the Applicants contributing available funds to the Money Pool will
generally be higher than the typical yield on short-term investments. However,
if on any given day the funds available through the Money Pool are insufficient
to satisfy the short-term borrowing requirements of an Applicant, such
Applicant may effect short-term borrowings through lending institutions and/or
through the sale of commercial paper, if appropriate, as described below.
Short-Term Notes
20. NU, CL&P, WMECO and PSNH propose to issue Short-Term Notes
pursuant to both formal and informal lines of credit with lending institutions.
Short-Term Notes will be issued both on a transactional basis, with a separate
note evidencing each loan, and on a so-called "grid note" basis, as described
below.
21. Each Short-Term Note issued on a transactional basis will be
dated the date of issue, will have a maximum term of 270 days, and will bear
interest at a fixed or floating rate as described below. Such Short-Term Notes
will be issued no later than December 31, 2000, and will (except as described
below) be subject to prepayment at any time at the borrower's option.
Exhibits A.1(a) through A.1(d) are typical forms of Short-Term Notes proposed
to be used by NU, CL&P, WMECO and PSNH, respectively. From time to time, an
Applicant may use a different form of Short-Term Note containing customary
terms to evidence its borrowings, if necessary, to satisfy the needs of a
particular lender.
22. Short-Term Notes issued on a grid note basis will be issued by
an Applicant to a particular lending institution at or prior to the first
borrowing under the grid note from that lender by the Applicant. Each
repayment and reborrowing subsequent to the first borrowing will be recorded on
a schedule to the note without the necessity of issuing additional notes. Also
recorded on a schedule to the note at the time of a borrowing will be the date
of the borrowing, the maturity (which may not exceed 270 days from the date of
the borrowing), the number of days the borrowing is outstanding, the interest
rate or method of determining the interest rate, the amount of interest due,
and the date of payment. Except as described below, borrowings on a grid note
basis will be subject to prepayment at any time at the borrower's option.
Exhibits A.2(a) through A.2(d) are proposed forms of grid notes for NU, CL&P,
WMECO and PSNH. Also Exhibit A.3 is a sample form (with attachments) of an
informal credit facility with a lending institution. The Applicants anticipate
that the grid notes and informal credit facility with lending institutions that
are actually used may vary from the forms submitted to reflect customary terms
or particular lending practices and policies of different lending institutions
but will be similar in substance to the exhibits referenced above.
23. The interest rate on all Short-Term Notes will be determined on
the basis of competitive quotations from several lending institutions, and will
either be at a fixed interest rate or at a floating interest rate determined
with reference to an agreed-upon index (such as a lending institution's base
rate, the LIBOR rate, certificate of deposit rates, money market rates or
commercial paper rates). The interest rate in any case will not exceed two
percentage points above the Federal Funds Effective Rate. The Applicants will
select the lending institution(s) from which to make a particular short-term
borrowing and determine whether to borrow at a fixed or a floating rate on the
basis of the lowest expected effective interest cost for borrowings of
comparable sizes and maturities.
24. Borrowings bearing floating interest rates will generally be
subject to prepayment at the borrower's option. The Applicants believe that
many lending institutions lending funds at fixed interest rates are engaged in
"matched funding," i.e., such lenders acquire for comparable maturities the
funds that are lent to their borrowers. Because the lenders would remain
obligated under their own borrowings from others if the Applicants were to
prepay their borrowings in advance of their scheduled maturities, many lending
institutions lending funds at fixed interest rates stipulate that such
borrowings may not be prepaid or may be prepaid only with a premium that will
make the lender whole for any losses (including lost profits) it may incur.
Accordingly, in order to realize the benefits of fixed interest rates when a
fixed-rate borrowing is evaluated to be the lowest cost borrowing available,
the Applicants may from time to time agree with individual lenders that such
borrowings may not be prepaid or may only be prepaid if the lender is made
whole for its losses.
25. NU, CL&P, WMECO and PSNH request authority to secure both formal
and informal credit lines with a number of lending institutions. Formal credit
lines may be subject to compensating balance and/or fee requirements and will
therefore be used only when an Applicant determines that such a credit line
offers advantages as compared with other available credit options.
Compensating balance requirements will not exceed 5% of the committed credit
line amount, and fees will not exceed 30 basis points per annum. Each
Applicant participating in a credit line would be able to draw funds to the
exclusion of the other Applicants. The Applicants may change their credit
lines and may obtain additional lines over time. The continued availability of
such credit lines is subject to the continuing review of the lending
institutions.
Commercial Paper
26. NU, CL&P and WMECO request authority to continue to sell
Commercial Paper publicly. Such Commercial Paper will be issued through The
Depository Trust Company in the form of book entry notes in denominations of
not less than $50,000, of varying maturities, with no maturity more than 270
days after the date of issue. The Commercial Paper will not be repayable prior
to maturity. The Commercial Paper will be sold through a placement agent or
agents in a co-managed commercial paper program pursuant to a placement agent
agreement at either the discount rate per annum or the interest rate per annum
prevailing at the date of issuance for commercial paper of comparable quality
and of the particular maturity sold by public utility issuers thereof. No
Commercial Paper will be issued unless the issuing Applicant believes that
the effective interest cost to the Applicant will be equal to or less than the
effective interest rate at which the Applicant could issue Short-Term Notes in
an amount at least equal to the principal amount of such Commercial Paper. The
placement agent or agents will receive a commission for the sale of the
Commercial Paper of not more than 1/8 of 1% per annum, on a discounted basis.
NU will publicly issue and sell commercial paper without registration thereof
in reliance upon the exemption set forth in Section 4(2) of the 1933 Act and
Regulation D thereunder. CL&P and WMECO will publicly issue and sell
Commercial Paper without registration thereof in reliance upon the exemption
set forth in Section 3(a)(3) of the Securities Act of 1933 (the "1933 Act").
Exhibit A.4 (a) is an example of the placement agent agreement for Commercial
Paper issued by NU, and Exhibit A.4(b) is an example of the placement agent
agreement for Commercial Paper issued by CL&P and WMECO.
Proposed Limits on Short-Term Debt
27. The aggregate amount of short-term debt that will be outstanding
at any one time, whether evidenced by Short-Term Notes issued to lending
institutions or by Commercial Paper or through borrowings from the Money Pool
pursuant to the authority requested in this Application or through borrowings
through revolving credit facilities described in paragraphs 2 through 5 and
paragraph 29, for which Commission authorization is being sought will not
exceed $200 million in the case of NU, $375 million in the case of CL&P, $150
million in the case of WMECO, $225 million in the case of PSNH (unless the
NHPUC were to issue an order authorizing a higher limit, triggering Rule 52),
$5 million in the case of HWP and $50 million in the case of NAEC.
28. The aggregate amount of short-term debt that can be incurred by
CL&P and WMECO is further restricted by the provisions of their respective
preferred stocks. CL&P and WMECO each have authorization from the holders of
their respective preferred stocks (through March 31, 2004 in the case of CL&P
and through February 10, 2004 in the case of WMECO) to issue securities
representing unsecured indebtedness up to a maximum of 20% of their respective
capitalizations. Based on their respective capitalizations as of March 31,
1996, CL&P is limited to approximately $512 million of unsecured indebtedness
through short-term debt and WMECO is limited to approximately $135 million.
See Exhibits J.1 and J.2, respectively. As a consequence of its preferred
stock limitation, therefore, WMECO would not now be able to have short-term
debt outstanding up to the $150 million maximum limit for which authorization
is requested in this Application. However, to the extent its preferred stock
provisions may eventually permit, WMECO wishes to have the flexibility to
borrow up to $150 million during the period for which short-term borrowing
authorization is sought in this Application.
Revolving Credit Facilities
29. If authorized by the Commission as requested by this
Application, NU, CL&P and WMECO will be parties to the three-year credit
Facility. HWP, NNECO and RR will not be parties to the Facility, although NU
may borrow for these companies, as well as for NAEC, Quinnehtuk and HEC,
through the Money Pool. As described in paragraph 2, until the existing
revolving credit facilities are terminated, NU, CL&P, WMECO, HWP, NNECO and RR
may also be able to borrow under such facilities to the extent a bank wishes to
continue lend thereunder. In addition, PSNH is a party to a $225 million
multi-bank revolving credit facility (the PSNH facility referred to in
paragraph 7) of which $125 million expires on May 14, 1999 and $100 million
expires on May 14, 1997.
Use of Proceeds
30. NU expects to use the new funds derived from short-term
borrowings authorized by the Commission pursuant to this Application (i) to
make loans or open account advances, as needed, to its subsidiary companies,
(ii) to supply funds as needed to its subsidiary companies as heretofore or
hereafter authorized by the Commission, (iii) to meet short-term cash needs
which may arise due to payment timing differences, and (iv) to meet other
corporate needs. Exhibits H.1 (a), H.1(b) and H.1(c) set forth the Cash
Receipts and Disbursements projections for NU, HWP, NAEC, NNECO, Quinnehtuk, RR
and HEC for 1996, 1997 and 1998, respectively. The projections take into
account additional contingencies such as (i) short-term debt level variances
during a given month, (ii) potential additional funding required by Charter Oak
and other future telecommunication or diversification projects and (iii) an
estimated $30 million contingency to refinance the $225 million NAEC bank term
loan.
31. As previously described, NU may borrow for HWP and NAEC as
authorized by the Commission pursuant to this Application. In addition,
surplus funds may be borrowed by HWP and NAEC from the Money Pool to the extent
available, although, in the case of NAEC, only to the extent of funds available
from NU. NAEC and HWP will apply borrowed funds to operation and maintenance
expenses and to meet cash needs which may arise due to timing differences.
Exhibits H.5 and H.6 set forth the Cash Receipts and Disbursements projections
for HWP and NAEC, with contingencies for short-term debt level variances during
a given month.
32. The funds to be derived by CL&P and WMECO from short-term
borrowings authorized by the Commission pursuant to this Application will be
applied, together with other funds available to those Applicants, to provide
working capital and for general corporate purposes. Exhibits H.2 and H.3 set
forth the Cash Receipts and Disbursements projections for CL&P and WMECO. The
projections are based on assumptions considerably more conservative than
present planning assumptions, since they assume Connecticut Yankee and
Millstone Units 1 and 2 will be out of service until April 30, 1997 (vs.
present planning assumptions of late 1996 in the case of Millstone Unit 2 and
early 1997 in the case of Millstone Unit 1, with Connecticut Yankee operating)
and Millstone Unit 3 will be out of service until December 31, 1997 (vs.
present planning assumptions of August 1996). Replacement power costs are
currently estimated to be approximately $27 million per month. The projections
take into account additional contingencies such as (i) short-term debt level
variances during a given month, (ii) the possibility that CL&P and WMECO may be
required to incur nuclear costs in the event the Niantic Bay Fuel Trust is not
available for funding nuclear fuel, and (iii) the retirement of the WMECO
Darts. The short-term debt level estimates have been reduced by potential
future bond financings and an assumption that CL&P and WMECO will not fund in
1996 or 1997 the costs associated with the disposal of spent fuel which have
been included in the forecast.
33. As described in Exhibit D.3, the $225 million PSNH Credit
Facility was established to (i) provide financing for the retirement of PSNH's
$172.5 Million Series A First Mortgage Bond issue which matured on May 15,
1996, (ii) finance possible wood-fired small power producer buyouts and (iii)
fund normal working capital requirements. Exhibit H.4 sets forth the Cash
Receipts and Disbursements projections for PSNH.
34. Except as otherwise described herein and unless otherwise
authorized by the Commission, any short-term borrowings of the Applicants
outstanding at December 31, 2000 will either (i) be repaid from internal cash
resources or from the proceeds of long-term debt or equity financing or (ii)
remain outstanding if the Commission authorizes the Applicants to continue such
short-term borrowings after December 31, 2000. Except as described herein, no
associate company or affiliate of the Applicants or any affiliate of any such
associate company has any material interest, directly or indirectly, in the
proposed transactions.
35. Except in accordance with the Act, neither NU nor any subsidiary
thereof (a) has acquired an ownership interest in an exempt wholesale generator
("EWG") or a foreign utility company ("FUCO") as defined in Sections 32 and 33
of the Act, or (b) now is or as a consequence of the transactions proposed
herein will become a party to, or has or will as a consequence of the
transactions proposed herein have a right under, a service, sales, or
construction contract with an exempt wholesale generator or a foreign utility
company. None of the proceeds from the transactions proposed herein will be
used by the Applicants to acquire any securities of, or any interest in, an
exempt wholesale generator or a foreign utility company.
The NU system is in compliance with Rule 53(a), (b) and (c), as
demonstrated by the following determinations:
(i) NU's aggregate investment in EWGs and FUCOs (i.e. amounts
invested in or committed to be invested in EWGs and FUCOs, for which
there is recourse to NU) does not exceed 50 percent of the NU system's
consolidated retained earnings as reported for the four most recent
quarterly periods on NU's Form 10-K and 10-Qs. At March 31,
1996, the ratio of such investment ($39 million) to such consolidated
retained earnings ($1.0 billion) was 4 percent.
(ii) Encoe Partners, Central Termica San Miguel de Tucuman, S.A., Ave
Fenix and Plantas Eolicas, S.A. (N.U.'s only EWGs or FUCOs at this
time) (collectively, "EWGs/FUCOs") maintain books and records and
prepare financial statements in accordance with Rule 53(a)(2).
Furthermore, NU has undertaken to provide the Commission access to such
books and records and financial statements, as it may request.
(iii) No employees of the NU system's public utility companies have
rendered services to the EWGs/FUCOs.
(iv) NU has submitted (a) a copy of each Form U-1 and Rule 24
certificates that have been filed with the Commission under Rule 53 and
(b) a copy of Item 9 of Form U5S and Exhibits G and H thereof to each
state regulator having jurisdiction over the retail rates of
the NU system public utility companies.
(v) Neither NU nor any NU subsidiary has been subject of a
bankruptcy or similar proceeding unless a plan of reorganization has
been confirmed in such proceeding. In addition, NU's average
consolidated retained earnings for the four most recent quarterly
periods has not decreased by 10 percent or more from the average for
the previous four quarterly periods.
(vi) In the previous fiscal year, NU's operating losses attributable
to its investment in the EWGs/FUCOs did not exceed 5 percent of NU's
consolidated retained earnings.
ITEM 2
FEES, COMMISSIONS AND EXPENSES
36. The fees, commissions and expenses paid or incurred, or to be
paid or incurred, directly or indirectly, by the Applicants in connection with
the proposed transactions are set forth in Exhibit K hereto (to be filed by
amendment).
37. None of such fees, commissions or expenses will be paid to any
associate company or affiliate of the Applicants except for financial and other
services to be performed at cost by NUSCO, an affiliated service company.
ITEM 3
APPLICABLE STATUTORY PROVISIONS
38. The Applicants believe that Sections 6(a), 7 and 12 of the Act
and Rule 45 thereunder are applicable to the transactions contemplated by the
Facility described in this Application. Section 12(b) of the Act and Rules 45
and 52 thereunder are applicable to the proposed open account advances to be
made by NU to certain of its subsidiaries, as described above. However, since
the receipt by the subsidiaries and the making by NU of open account
advances will not involve the issuance of any security by a subsidiary of NU,
the Applicants do not consider Sections 6 and 9 of the Act to be applicable to
the proposed open account advances. Sections 6 and 7 of the Act are applicable
to the issue and sale by the Applicants of the Short-Term Notes and Commercial
Paper as herein proposed.
39. Borrowings from the Money Pool are subject to the requirements
of Sections 6, 7, 9(a), 10 and 12 of the Act and Rules 43, 45 and 52
thereunder. Loans to the Money Pool are subject to the requirements of
Sections 9(a), 10 and 12 of the Act, but are exempted from Rule 45 (a) pursuant
to paragraph (b)(1) of Rule 45. Investments of funds in the Money Pool are
subject to Sections 9(a), 10 and 12 of the Act.
40. Within 45 days after the end of each calendar quarter, the
Applicants will file certificates of partial consummation describing their
borrowings through the Money Pool and the issue and sale of Short-Term Notes
and Commercial Paper during that quarter pursuant to the authority requested
herein. Such certificates will show the names of the borrowers, the dates and
amounts of all new borrowings, the names of the lenders, the maximum amount of
notes outstanding to lending institutions, the Money Pool and commercial paper
purchasers at any one time, and the total amount of notes outstanding to
lending institutions, the Money Pool and commercial paper purchasers at the end
of the quarter. In addition, the certificates will include the following
information with respect to the issue and sale of Commercial Paper:
(a) the interest cost for each note issued as Commercial Paper as
compared with the commercial bank prime rate in effect at the
date of issue of such Commercial Paper; and
(b) the dollar saving of each issue and the total dollar saving on
the aggregate notes covered by such certificate computed in each
case on the basis of the difference between the interest cost on
the Commercial Paper and the commercial bank prime rate for bank
loans in effect at the date of issue of the Commercial Paper.
ITEM 4
REGULATORY APPROVALS
41. The approval of the DPU is required pursuant to C.164, Section
17A of the Massachusetts General Laws for the participation of WMECO in the
Money Pool. The DPU granted such approval on October 29, 1986. As explained
in paragraph 15 above, the approval of the DPU will be required under
Massachusetts General Laws C.164, Section 17A before PSNH can borrow Money Pool
funds attributable to contributions by WMECO. WMECO has not yet requested that
authorization. Until that authorization is granted, PSNH may not borrow
through the Money Pool from funds attributable to WMECO.
42. The NHPUC approved the PSNH Facility and PSNH's short-term debt
limit of $225 million in respect thereof in an order dated February 28, 1996.
The NHPUC approved PSNH's and NAEC's participation in the Money Pool in an
order dated March 19, 1992.
43. No other state commission has jurisdiction with respect to any
aspect of the proposed transaction and, assuming the Commission authorizes and
approves all aspects of such transactions (including the accounting therefor),
no Federal commission other than the Securities and Exchange Commission has
jurisdiction with respect to any aspect thereof.
ITEM 5
PROCEDURE
44. The Applicants respectfully request the Commission's approval,
pursuant to this Application, of all transactions described herein, whether
under the sections of the Act and rules thereunder enumerated in Item 1 or
otherwise. The 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 the 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. The Applicants
consent that the Office of Public Utility Regulation within the Division of
Investment Management may assist in the preparation of the Commission's
decision and/or order unless the Office opposes the transactions covered by
this Application. It is requested that the Commission issue an order
authorizing the transactions proposed herein at the earliest practicable date
but in any event not later than July 27, 1996. It is further requested
that (i) there not be a recommended decision by an Administrative Law Judge or
other responsible officer of the Commission, (ii) the Office of Public Utility
Regulation be permitted to assist in the preparation of the Commission's
decision, and (iii) the Commission's order become effective forthwith upon
issuance.
**FOOTNOTES**
{1} As mentioned above in paragraph 9, NNECO, Quinnehtuk, RR and HEC are
not seeking Commission approval of their borrowings through the Money
Pool by virtue of the exemption provided by Rule 52 under the Act.
<PAGE>
ITEM 6
EXHIBITS AND FINANCIAL STATEMENTS
(a) Exhibits
Asterisked (*) items are to be filed by subsequent amendment.
A.1(a) Current form of Short-Term Note -- NU.
(See Exhibit No. A.1(a) in File No. 70-8479).
A.1(b) Current form of Short-Term Note -- CL&P.
(See Exhibit No. A.1(b) in File No. 70-8479).
A.1(c) Current form of Short-Term Note -- WMECO.
(See Exhibit No. A.1(c) in File No. 70-8479).
A.1(d) Current form of Short-Term Note -- PSNH.
(See Exhibit No. A.1(d) in File No. 70-8479).
A.2(a) Current form of Grid Note -- NU.
(See Exhibit No. A.2(a) in File No. 70-8479).
A.2(b) Current form of Grid Note -- CL&P.
(See Exhibit No. A.2(b) in File No. 70-8479).
A.2(c) Current form of Grid Note -- WMECO.
(See Exhibit No. A.2(c) in File No. 70-8479).
A.2(d) Current form of Grid Note -- PSNH.
(See Exhibit No. A.2(d) in File No. 70-8479).
A.3 Example of an informal credit facility with a lending
institution.
(See Exhibit No. A.3 in File No. 70-8479).
A.4(a) Example of Commercial Paper placement agent agreement --
NU.
(See Exhibit No. A.4(a) in File No. 70-8479).
A.4(b) Example of Commercial Paper placement agent agreement --
CL&P and WMECO. (See Exhibit No. A.4(b) in File No. 70-
8479).
A.5 Terms of the NU System Money Pool.
*B.1 Form of Credit Agreement.
B.2 Preliminary Terms and Conditions of Facility.
C. Not Applicable.
D.1 Application to the Massachusetts Department of Public
Utilities (See File No. 70-7111).
D.2 Certified copy of Order of the Massachusetts Department
of Public Utilities (See File No. 70-7111).
D.3 Application to the New Hampshire Public Utilities
Commission for approval of the PSNH Facility.
D.4 Order of the New Hampshire Public Utilities Commission
approving the PSNH Facility.
D.5 Application to the New Hampshire Public Utilities
Commission for approval of participation by PSNH and
NAEC in the Money Pool (See Exhibit No. I-C-2 in File
No. 70-7695).
D.6 Order of the New Hampshire Public Utilities Commission
approving participation by PSNH and NAEC in the Money
Pool (See Exhibit No. I-C-3 in File No. 70-7695).
E. Not Applicable.
*F. Opinion of Counsel.
G. Financial Data Schedules.
H.1(a) Cash Receipts and Disbursements -- NU, NAEC, HWP,
RR and Quinnehtuk, HEC, and NNECO (1996).
H.1(b) Cash Receipts and Disbursements -- NU, NAEC, HWP,
RR and Quinnehtuk, HEC, and NNECO (1997).
H.1(c) Cash Receipts and Disbursements -- NU, NAEC, HWP,
RR and Quinnehtuk, HEC, and NNECO (1998).
H.2 Cash Receipts and Disbursements -- CL&P.
H.3 Cash Receipts and Disbursements -- WMECO.
H.4 Cash Receipts and Disbursements -- PSNH.
H.5 Cash Receipts and Disbursements -- HWP.
H.6 Cash Receipts and Disbursements -- NAEC.
I. Proposed Form of Notice.
J.1 20% Unsecured Debt Test - CL&P.
J.2 20% Unsecured Debt Test - WMECO.
*K. Schedule of Fees, Commissions and Expenses.
(b) Financial Statements
1. Northeast Utilities (parent company only)
1.1 Balance Sheet, per books and pro forma, as of March 31,
1996.
1.2 Statement of Income, per books and pro forma, for 12
months ended March 31, 1996 and capital structure, per
books and pro forma, as of March 31, 1996.
2. The Connecticut Light and Power Company
2.1 Balance Sheet, per books and pro forma, as of March 31,
1996.
2.2 Statement of Income, per books and pro forma, for 12
months ended March 31, 1996 and capital structure, per
books and pro forma, as of March 31, 1996.
3. Western Massachusetts Electric Company
3.1 Balance Sheet, per books and pro forma, as of March 31,
1996.
3.2 Statement of Income, per books and pro forma, for 12
months ended March 31, 1996 and capital structure, per
books and pro forma, as of March 31, 1996.
4. Public Service Company of New Hampshire
4.1 Balance Sheet, per books and pro forma as of March 31,
1996.
4.2 Statement of Income per books and pro forma, for 12
months ended March 31, 1996 and capital structure, per
books and pro forma, as of March 31, 1996.
5. Holyoke Water Power Company
5.1 Balance Sheet, per books and pro forma as of March 31,
1996.
5.2 Statement of Income per books and pro forma, for 12
months ended March 31, 1996 and capital structure, per
books and pro forma, as of March 31, 1996.
6. North Atlantic Energy Corporation
6.1 Balance Sheet, per books and pro forma as of March 31,
1996.
6.2 Statement of Income per books and pro forma, for 12
months ended March 31, 1996 and capital structure, per
books and pro forma, as of March 31, 1996.
7. Northeast Utilities and Subsidiaries (consolidated)
7.1 Consolidated Balance Sheet, per books and pro forma, as
of March 31, 1996.
7.2 Consolidated Statement of Income, per books and pro
forma, for 12 months ended March 31, 1996 and capital
structure, per books and pro forma, as of March 31,
1996.
ITEM 7
INFORMATION AS TO ENVIRONMENTAL EFFECTS
(a) The financial transactions described herein do not involve a
major Federal action significantly affecting the quality of the human
environment.
(b) No.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Public Utility Holding Company Act
of 1935, as amended, the undersigned have duly caused this Application to be
signed on behalf of each of them by the undersigned thereunto duly authorized.
Date: June 19, 1996
NORTHEAST UTILITIES
THE CONNECTICUT LIGHT & POWER COMPANY
WESTERN MASSACHUSETTS ELECTRIC COMPANY
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
HOLYOKE WATER POWER COMPANY
NORTH ATLANTIC ENERGY CORPORATION
By: /s/David R. McHale
David R. McHale
Assistant Treasurer
File No. ______
INDEX TO EXHIBITS AND FINANCIAL STATEMENTS
FILED WITH FORM U-1
of
NORTHEAST UTILITIES, THE CONNECTICUT LIGHT AND POWER COMPANY, WESTERN
MASSACHUSETTS ELECTRIC COMPANY, PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE,
HOLYOKE WATER POWER COMPANY AND NORTH ATLANTIC ENERGY CORPORATION
(a) Exhibits
A.5 Terms of the NU System Money Pool.
B.2 Preliminary Terms and Conditions of the Facility.
D.3 Application to the New Hampshire Public Utilities Commission for
approval of the PSNH Facility.
D.4 Order of the New Hampshire Public Utilities Commission approving
the PSNH Facility.
G. Financial Data Schedules.
H.1(a) Cash Receipts and Disbursements -- NU, NAEC, HWP, RR and
Quinnehtuk, HEC, and NNECO (1996).
H.1(b) Cash Receipts and Disbursements -- NU, NAEC, HWP, RR and
Quinnehtuk, HEC, and NNECO (1997).
H.1(c) Cash Receipts and Disbursements -- NU, NAEC, HWP, RR and
Quinnehtuk, HEC, and NNECO (1998).
H.2 Cash Receipts and Disbursements -- CL&P.
H.3 Cash Receipts and Disbursements -- WMECO.
H.4 Cash Receipts and Disbursements -- PSNH.
H.5 Cash Receipts and Disbursements -- HWP.
H.6 Cash Receipts and Disbursements -- NAEC.
I. Proposed Form of Notice.
J.1 20% Unsecured Debt Test - CL&P.
J.2 20% Unsecured Debt Test - WMECO.
(b) Financial Statements
1. Northeast Utilities (parent company only)
1.1 Balance Sheet, per books and pro forma, as of March 31,
1996.
1.2 Statement of Income, per books and pro forma, for 12
months ended March 31, 1996 and capital structure, per
books and pro forma, as of March 31, 1996.
2. The Connecticut Light and Power Company
2.1 Balance Sheet, per books and pro forma, as of March 31,
1996.
2.2 Statement of Income, per books and pro forma, for 12
months ended March 31, 1996 and capital structure, per
books and pro forma, as of March 31, 1996.
3. Western Massachusetts Electric Company
3.1 Balance Sheet, per books and pro forma, as of March 31,
1996.
3.2 Statement of Income, per books and pro forma, for 12
months ended March 31, 1996 and capital structure, per
books and pro forma, as of March 31, 1996.
4. Public Service Company of New Hampshire
4.1 Balance Sheet, per books and pro forma as of March 31,
1996.
4.2 Statement of Income per books and pro forma, for 12
months ended March 31, 1996 and capital structure, per
books and pro forma, as of March 31, 1996.
5. Holyoke Water Power Company
5.1 Balance Sheet, per books and pro forma as of March 31,
1996.
5.2 Statement of Income per books and pro forma, for 12
months ended March 31, 1996 and capital structure, per
books and pro forma, as of March 31, 1996.
6. North Atlantic Energy Corporation
6.1 Balance Sheet, per books and pro forma as of March 31,
1996.
6.2 Statement of Income per books and pro forma, for 12
months ended March 31, 1996 and capital structure, per
books and pro forma, as of March 31, 1996.
7. Northeast Utilities and Subsidiaries (consolidated)
7.1 Consolidated Balance Sheet, per books and pro forma, as
of March 31, 1996.
7.2 Consolidated Statement of Income, per books and pro
forma, for 12 months ended March 31, 1996 and capital
structure, per books and pro forma, as of March 31,
1996.
<PAGE>
EXHIBIT A.5
PROPOSED TERMS OF THE NU MONEY POOL
(Revised June, 1996)
GENERAL
1. The members of the Money Pool (the Pool) are Northeast Utilities
(NU), The Connecticut Light and Power Company (CL&P), Western Massachusetts
Electric Company (WMECO), Northeast Nuclear Energy Company (NNECO), Holyoke
Water Power Company (HWP), The Rocky River Realty Company (RRR), The Quinnehtuk
Company (Quinnehtuk), Public Service Company of New Hampshire (PSNH), North
Atlantic Energy Corporation (North Atlantic) and HEC Inc. (HEC).
2. The Pool will be administered by Northeast Utilities Service
Company (Agent).
3. Each member will determine each day, on the basis of cash flow
projections, the amount of surplus funds it has available for contribution to
the Pool (Surplus Funds). In addition to its own Surplus Funds, NU may borrow
funds from third party lenders (Excess Funds) in order to make these Excess
Funds available to meet the borrowing needs of NNECO, HWP, RRR, Quinnehtuk,
PSNH, North Atlantic and HEC.
CONTRIBUTIONS TO THE POOL
4. Each member will contribute its surplus funds to the Pool. NU
will contribute any Excess Funds to the Pool.
5. Each member will receive as interest with respect to its Surplus
Funds that fraction of the total interest received by the Pool equal to the
ratio of the Surplus Funds the member has contributed, times the period in
which such Surplus Funds were available, to the total Surplus Funds in the
Pool, times the period in which all Surplus Funds were in the Pool. NU will
receive the same interest with respect to its Excess Funds that it pays for its
Excess Funds. Such interest will be computed on a daily basis and settled once
per month.
6. Each member may withdraw any of its Surplus Funds at any time
without notice. NU may withdraw its Excess Funds at any time without notice.
BORROWINGS FROM THE POOL
7. NU shall not be entitled to borrow from the Pool.
8. North Atlantic and HEC shall be entitled to borrow only to the
extent that Excess Funds, or Surplus Funds that are attributable to
contributions from NU, are available for such borrowings. PSNH shall not be
entitled to borrow Surplus Funds that are attributable to contributions from
WMECO until the Massachusetts Department of Public Utilities has issued an
order authorizing WMECO to lend funds to PSNH through the Pool.
9. All short-term borrowing needs of members other than NU, which
shall not be entitled to borrow from the Pool and PSNH, HEC and North Atlantic,
which may borrow only subject to the conditions set forth in paragraph 8, will
be met by Surplus Funds in the Pool to the extent such funds are available.
NNECO, HWP, RRR, Quinnehtuk, PSNH, North Atlantic and HEC may meet their short-
term borrowing needs through Excess Funds made available from NU.
10. Loans will be made first to borrowers that cannot access the
commercial paper market.
11. Members borrowing Surplus Funds will pay interest at a rate
equal to the daily composite Federal funds rate. The rate to be used for
weekends and holidays will be the prior business day's rate. Members borrowing
Excess Funds will pay interest at the same rate that NU pays for those Excess
Funds.
12. Loans made by the Pool will be open account advances for periods
of less than 12 months, although the Agent may receive upon demand a promissory
note evidencing the transaction.
13. All loans made by the Pool from Surplus Funds are payable on
demand by the Agent.
14. All loans made by the Pool from Surplus Funds may be prepaid by
the borrower without penalty. No loans from Excess Funds shall be prepaid
prior to the maturity of the NU borrowing that resulted in the Excess Funds,
unless the prepayment can be made without NU incurring additional costs or
unless the prepayment is accompanied by payment of any additional costs
incurred by NU as a result of such prepayment.
15. If there are more Surplus Funds in the Pool than are necessary
to meet the borrowing needs of the members, the Agent will use the Surplus
Funds to meet the NU system's compensating balance requirements or invest them
on behalf of the Pool directly, or indirectly through an investment fund, in
any of the following instruments:
(a) obligations issued or guaranteed by the United States of
America;
(b) obligations issued or guaranteed by any entity
controlled, sponsored by, or supervised by and acting as
an instrumentality of the United States of America
pursuant to authority granted by the Congress of the
United States, including but not limited to the
obligations of the Government National Mortgage
Association (GNMA), Student Loan Marketing Association
(SLMA), Federal Home Loan Mortgage Corporation
(FHLMC) and Federal National Mortgage Association
(FNMA);
(c) obligations issued or guaranteed by any state or
political subdivision thereof, provided that such
obligations are rated for investment purposes at
not less than "A" by Moody's Investors Service, Inc.
("Moody's") or by the Standard & Poor's Rating Group
("S&P");
(d) certificates of deposit issued or banker's acceptances
drawn on and accepted by commercial banks which are
members of the Federal Deposit Insurance Corporation and
which have a combined capital, surplus and undistributed
profits of at least $100,000,000;
(e) commercial paper rated not less than "P-1" by Moody's or
not less than "A-1" by S&P;
(f) repurchase agreements with any commercial or investment
bank secured by obligations issued or guaranteed by the
United States of America or an instrumentality thereof
provided collateral is held by a third party; and
(g) such other instruments as are permitted by Rule 40(a)(1)
under the Act and approved by the Massachusetts
Department of Public Utilities (the "DPU") pursuant to
Massachusetts General Laws Chapter 164, Section 17A and
the regulations thereunder.
TERMINATION
16. Any member may terminate its participation in the Pool at any
time without notice.
<PAGE>
EXHIBIT B.2
[INDICATIVE TERMS FOR DISCUSSION ONLY. THE SUMMARY THAT FOLLOWS IS SUBJECT TO
CREDIT APPROVAL AND DOES NOT CONSTITUTE AN OFFER OR COMMITMENT]
NORTHEAST UTILITIES
THE CONNECTICUT LIGHT AND POWER COMPANY
WESTERN MASSACHUSETTS ELECTRIC COMPANY
SUMMARY OF PRINCIPAL TERMS AND CONDITIONS
[$450,000,000] THREE-YEAR REVOLVING CREDIT FACILITY
BORROWERS: Northeast Utilities ("NU"), The Connecticut Light
and Power Company ("CL&P") and Western
Massachusetts Electric Company ("WMECO";
collectively with NU and CL&P, the "BORROWERS";
individually, a "BORROWER").
As used in this Summary of Terms, a "Principal
Subsidiary" of a Borrower means a direct or indirect
Subsidiary which represents a material portion of
such Borrower's consolidated assets or such
Borrower's consolidated net income (or loss), it
being understood that CL&P, WMECO, Public Service
Company of New Hampshire ("PSNH") and
North Atlantic Energy Corporation ("NAEC") shall in
all events be considered Principal Subsidiaries of
NU, but no other Principal Subsidiaries of any other
Borrower presently exist.
FACILITY: Three-Year Revolving Credit Facility (the
"FACILITY") in an amount not to exceed
[$450,000,000] (the "TOTAL COMMITMENT").
Within the limits of the Total Commitment: (i) up to
[$200,000,000] will be available for direct
borrowing by NU; (ii) up to [$375,000,000] will be
available for direct borrowing by CL&P; and (iii) up
to [$150,000,000] will be available for direct
borrowing by WMECO (each of the foregoing being
referred to as a "BORROWER SUBLIMIT"). Subject to
the limit of the Total Commitment, the
Borrower Sublimits may be increased from time to
time with the approval of all of the Lenders.
PURPOSE: For general corporate purposes and to replace the
Borrowers' existing three-year and 364-day revolving
credit facilities dated as of December 1, 1992 with
individual banks (the "EXISTING
FACILITIES").
ARRANGER: Citicorp Securities, Inc.
AGENT: Citibank, N.A. ("CITIBANK") will act as
Administrative Agent and Documentation Agent for the
Facility (collectively, the "AGENT").
LENDERS: Citibank and other financial institutions acceptable
to the Agent and the Borrowers. The Facility will
be syndicated by the Arranger with the active
support and assistance of the Borrowers and
Northeast Utilities Service Company.
CLOSING DATE: August 15, 1996, or such other date as may be agreed
upon by the Borrowers and the Agent.
COMMITMENT
TERMINATION AND
FINAL MATURITY Third anniversary of the Closing Date.
DATE:
SECURITY: The Facility will be unsecured.
PRICING: Based on the Applicable Rating Level for each
Borrower as set forth for such Borrower on the
Pricing Supplement attached hereto as Exhibit A.
APPLICABLE
RATING LEVELS: The Applicable Rating Levels used to determine fees
and interest rate margins for each Borrower will be
determined on the basis of the ratings of Standard &
Poor's Rating Group ("S&P") and
Moody's Investors Service, Inc. ("MOODY'S")
applicable from time to time to such Borrower's
Reference Securities. In the event of a split
rating, the lower rating shall control. The Applicable
Rating Level shall be redetermined upon any change
in the S&P rating or the Moody's rating, as the case
may be.
In the case of NU, the "REFERENCE SECURITIES" shall
be NU's long-term senior debt securities not
entitled to external credit support. In the case of
CL&P and WMECO, the Reference Securities shall be their
respective First Mortgage Bonds not entitled to
external credit support.
At the Borrowers' option:
INTEREST RATE
OPTIONS: (i) Eurodollar Rate Advances for interest periods of
1, 2, 3 or 6 months;
(ii) Base Rate Advances;
(iii) Competitive Bid Advances.
The Eurodollar Rate is a periodic fixed rate equal
to LIBOR plus the Applicable Margin for Eurodollar Rate
Advances. LIBOR is the average rate per annum
(rounded upward to the nearest 1/16 of 1%) at which
deposits in U.S. dollars are offered by the
Reference Banks to prime banks in the London
interbank market at 11:00 A.M. (London time) two
business days before the first day of the Interest
Period and in amounts approximately equal to the
Reference Banks' pro rata share of the contemplated
Eurodollar Rate Advances for a given Interest Period
and with a maturity equal to such Interest Period.
Citibank and one or more other Lenders
reasonably satisfactory to the Borrowers will act as
Reference Banks under the Facility.
The Base Rate is a fluctuating rate per annum equal
at all times to the highest of (i) Citibank's
publicly announced "base" rate, (ii) 1/2 of 1% percent
per annum above the latest three-week moving average of
secondary market morning offering rates in the
United States for three-month certificates of
deposit of major U.S. money market banks, adjusted to
the nearest 1/16 of 1%, and (iii) a rate equal to 1/2 of
1% per annum above the weighted average of the rates
on overnight Federal funds transactions with members
of the Federal Reserve System arranged
by Federal funds brokers, plus, in each case, the
Applicable Margin for Base Rate Advances.
APPLICABLE Determined for each Borrower on the basis of such
MARGIN: Borrower's Applicable Rating Level as set forth on
the Pricing Supplement attached hereto as Exhibit A.
If any amount of principal is not paid when due, the
Applicable Margin shall increase by 200 basis points
per annum, and if such Advance is a
Eurodollar Rate Advance, it will convert to a Base
Rate Advance at the end of the Interest Period then
in effect for such Eurodollar Rate Advance.
The interest rate (including margin) for each
Competitive Bid Advance will be determined by the
auction relating to such Competitive Bid Advance.
All other amounts not paid when due shall bear
interest at the Base Rate plus 200 basis points.
FACILITY FEE: Payable by the Borrowers on the Lenders' commitments
(whether used or unused), quarterly in
arrears and on the Commitment Termination Date,
based on the Borrowers' respective Applicable Rating
Levels, as set forth on the Pricing
Supplement attached hereto as Exhibit A. The
Facility Fee will be deemed to be allocated among
the Borrowers pro rata in accordance with their
respective Borrower Sublimits, although all of the
Borrowers will remain jointly and severally liable
for the payment of the Facility Fee. The Facility
Fee shall be calculated on the basis of actual number of
days elapsed in a year of 360 days. [NB: ALLOCATION
AMONG BORROWERS NEEDS MORE THOUGHT; WHAT'S HERE
WORKS IF THE FACILITY IS UNDRAWN, BUT,
BECAUSE OF THE DIFFERENTIAL FEE RATES, DOES NOT
RESULT IN THE RIGHT TOTAL RETURNS ON DRAWN
OUTSTANDINGS.]
INTEREST Interest on LIBOR Advances and Competitive Bid
PAYMENTS: Advances will be paid at the end of each Interest
Period for such Advances, but at least quarterly.
Interest on Base Rate Advances will be paid
quarterly in arrears. Interest to be computed on a
365/366-day basis for Base Rate Advances and a 360-
day basis for Eurodollar Rate Advances.
AVAILABILITY: From the Closing Date and prior to the
Commitment Termination Date, the Borrowers may,
subject to the terms of the Facility, borrow, repay
and reborrow.
BORROWINGS: Borrowings shall be in minimum principal amounts of
$10,000,000 and integral multiples of $1,000,000 in
excess thereof. All Advances (other than
Competitive Bid Advances) shall be made by the
Lenders ratably in proportion to their respective
Commitments. Borrowings will be available on same
day notice for Base Rate Advances and three business
days notice for Eurodollar Rate Advances.
COMPETITIVE BID
OPTION: Each Borrower may request the Agent to solicit
competitive bids from the Lenders and one or more
Designated Bidders (individually a "BIDDER" and
collectively the "BIDDERS") for Advances for
requested maturities of 30 days or more. Each
Bidder may bid at its discretion. The Borrower's
notice requesting such bids will be given to the
Agent at least one business day prior to the
proposed Advance date for fixed rate bids and at
least four business days prior to the proposed
Advance date for LIBOR based bids, and will specify
the proposed date of Advance, amount and maturity
date of the proposed Advance, interest
payment schedule, the interest rate basis to be used
by the Bidders in bidding, and such other terms as
the Borrower may specify. The Agent will advise the
Bidders of the terms of the Borrower's notice, and
such Bidders as elect may submit bids, which the
Agent shall provide to the Borrower.
The Borrower may accept one or more bids, PROVIDED
THAT the aggregate outstanding Advances of all
Lenders on the date of, and giving effect to, any
Competitive Bid Advances shall not exceed the
aggregate Commitments at such time. Bids will be
accepted in order of the lowest to the highest rates
("BID RATES"). The Borrower may not accept bids in
excess of the requested bid amount for any maturity.
If two or more Bidders bid at the same
Bid Rate the amount to be borrowed at such Bid Rate
will be allocated among such Bidders in proportion
to the amount which each Bidder bid at
such Bid Rate.
Each Borrowing under the Competitive Bid Option
shall be in an amount of not less than $10,000,000
and integral multiples of $1,000,000 in excess
thereof. While any such Borrowing is outstanding,
it will be deemed usage of the Facility for the
purposes of availability and the Commitment of each
Lender (whether or not a Bidder) shall be reduced
and deemed used for all purposes by its pro rata
share (based on its respective Commitment) of an
amount equal to the outstanding amount of such
Borrowing. However, each Lender's Advance made
under the Competitive Bid Option shall not reduce
such Lender's obligation to lend its pro rata share
of the remaining undrawn Commitment.
COMPETITIVE BID
ADMINISTRATIVE As agreed between the Agent and the Borrower.
FEE:
ANNUAL AGENCY As agreed between the Agent and the Borrower.
FEE:
REPAYMENT: The Borrower shall repay (i) each Advance (other
than a Competitive Bid Advance) no later than on the
Commitment Termination Date and (ii) each
Competitive Bid Advance at the maturity date
specified in the Borrower's notice requesting such
Competitive Bid Advance (which maturity date shall
occur on or prior to the Commitment
Termination Date).
OPTIONAL
PREPAYMENT: Advances (other than Competitive Bid Advances) may
be prepaid without penalty, with notice not later
than 11:00 A.M. for Base Rate Advances and with one
day's notice for Eurodollar Rate
Advances, in minimum amounts of $10,000,000 and
increments of $1,000,000 in excess thereof. The
Borrower will bear all costs related to the
prepayment of a Eurodollar Rate Advance prior to the
last day of its interest period. Competitive Bid
Advances may not be prepaid.
FACILITY
DOCUMENTATION: The Commitments will be subject to preparation,
execution and delivery of mutually acceptable loan
documentation which will contain conditions
precedent, representations and warranties,
covenants, events of default and other provisions
customary for facilities of this nature, including,
but not limited to, those noted below.
Conditions Precedent
to Effectiveness: Customary for facilities of this type, and
including, in any event:
- Finalized and fully-executed definitive
Credit Agreement and notes satisfactory
to the Agent and the Lenders.
- Certified copies of the resolutions of the
Board of Directors of each Borrower
authorizing the execution, delivery and
performance of the Credit Agreement and
the related notes.
- A certificate of incumbency signed by the
Secretary or an Assistant Secretary of
each Borrower certifying the names and
true signatures of the officers of such
Borrower authorized to sign the loan
documents and the other documents to be
delivered by it.
- Certified copies of the orders of the
Securities and Exchange Commission
("SEC") and any other necessary govern
mental approval, order, etc., authorizing
each Borrower's execution and delivery
of the Credit Agreement for each Facility,
the issuance of the related notes and all
borrowings, all of which shall be in full
force and effect and not subject to appeal
or rehearing.
- Opinions of counsel for the Borrowers
acceptable to the Agent, as to such
matters as the Lenders may reasonably
request, and the opinion of Agent's
counsel, as to such matters as the Agent
may reasonably request.
- Copies of consolidated financial statements
of each Borrower, as at and for the periods
ended December 31, 1995 and March 31, 1996.
CONDITIONS PRECEDENT
TO NEW MONEY AND
COMPETITIVE BID
ADVANCES: The obligation of the Lenders to make new
money Advances or Competitive Bid Advances
shall be subject to the further conditions
precedent that on the date of any such Advances
(as certified by the relevant Borrower in the
relevant Borrowing notice):
- The representations and warranties of
such Borrower shall be true and correct on
and as of the date of such Advances as
though made on and as of such date.
- No event shall have occurred and be
continuing, or would result from such
Advances, that constitutes an Event of
Default or would constitute an Event of
Default but for the requirement that notice
be given or time elapse, or both.
CONDITIONS PRECEDENT
TO ROLLOVER ADVANCES
(OTHER THAN
COMPETITIVE BID
ADVANCES): The obligation of the Lenders to make any other
Advances shall be subject to the further
conditions precedent that on the date of such
Advances (as certified by the relevant Borrower
in the relevant Borrowing notice):
- The representations and warranties of
such Borrower (other than with respect to
material adverse change and material
adverse litigation) shall be true and
correct on and as of the date of such
Advances as though made on and as of
such date.
- No event shall have occurred and be
continuing, or would result from such
Advances, that constitutes an Event of
Default.
REPRESENTATIONS
AND WARRANTIES: Each Borrower will make representations and
warranties customary for facilities of this type
and substantially similar to those contained in the
Existing Facilities, including but not limited to:
- Due organization, existence and
qualification to do business of such Borrower
and its Principal Subsidiaries;
- Due authorization, execution, delivery
and enforceability of all loan documents;
- Execution, delivery and performance of
the loan documents will not contravene such
Borrower's charter documents, or any law or legal
restriction, or any contractual obligation of such
Borrower or any of its Principal Subsidiaries;
- No existing violation by such Borrower and its
Principal Subsidiaries of laws, rules, regulations,
injunctions or decrees that could have a material
adverse effect, except as disclosed in such
Borrower's Annual Report on Form 10-K for the year
ended December 31, 1995, its Quarterly
Report on Form 10-Q for the quarter
ended March 31, 1996 and any Current
Report on Form 8-K delivered to the
Lenders reasonably in advance of the
Closing Date (the "DISCLOSURE
DOCUMENTS");
- All governmental approvals obtained;
- Accuracy of financial statements and no
material adverse change since March 31,
1996;
- No litigation or other proceedings
pending or overtly threatened affecting
the Existing Facilities or the Facility, and,
except as disclosed in the Disclosure
Documents, no such litigation or
proceedings affecting such Borrower or any of
its Principal Subsidiaries as to which there
is a reasonable possibility of an adverse
determination and which, if adversely determined,
would materially and adversely affect the
financial condition, results of operations,
properties or prospects of the Borrower as a whole;
- Certain ERISA matters;
- Such Borrower (or a Principal Subsidiary) has
good title to the electric generating plants
named in Item 2 of the Borrowers' Annual Report
on Form 10-K for the year ended December 31, 1995;
- All common stock of CL&P, WMECO, PSNH and NAEC
is held by NU free and clear of any liens;
- Tax returns filed and taxes paid by such Borrower
and its Principal Subsidiaries;
- No misleading information supplied to Agent or
Lenders;
- Proceeds of Advances to be used for general corporate
purposes, including to backstop commercial paper and
to provide liquidity to the NU System Money Pool;
and
- Compliance with Federal Reserve Regulation U.
FINANCIAL
COVENANTS: COMMON EQUITY: Each of the Borrowers will be
required to maintain at all times a ratio of
Common Equity to Total Capitalization as
follows:
<TABLE>
<CAPTION>
1996 1997 1998
<S> <C> <C> <C>
NU (CONSOL.) 0.30:1.00 0.31:1.00 0.32:1.00
CL&P 0.31:1.00 0.32:1.00 0.33:1.00
WMECO 0.30:1.00 0.31:1.00 0.31:1.00
</TABLE>
For which purpose:
"COMMON EQUITY" of any Borrower shall mean
for any period, an amount equal to the sum of the
aggregate of the par value of, or stated capital
represented by, the outstanding common shares
of such Borrower and its subsidiaries and the
surplus, paid-in, earned and other, if any, of such
Borrower and its subsidiaries as determined on a
consolidated basis in accordance with generally
accepted accounting principles; and
"TOTAL CAPITALIZATION" of any Borrower shall
mean the sum of the Common Equity, Preferred
Stock and all long-term and short-term Debt of
such Borrower and its consolidated subsidiaries
(including the current portion thereof); and
"DEBT" of any Person shall mean, without
duplication, (i) indebtedness of such Person for
borrowed money, including but not limited
to obligations of such Person evidenced by bonds,
debentures, notes or other similar instruments,
(ii) obligations of such Person to pay the deferred
purchase price of property or services (excluding
any obligation of such Person to the United States
Department of Energy or its successor with
respect to disposition of spent nuclear fuel
burned prior to April 3, 1983), (iii) obligations of
such Person as lessee under leases which shall
have been or should be, in accordance with
generally accepted accounting principles,
recorded as capital leases, (iv) obligations under
direct or indirect guaranties in respect of, and
obligations (contingent or otherwise) to purchase
or otherwise acquire, or otherwise to assure a
creditor against loss in respect of, indebtedness
or obligations of others of the kinds referred to in
clauses (i) through (iv), above, and (v) liabilities
in respect of unfunded vested benefits under
ERISA Plans.
INTEREST COVERAGE: Each of the Borrowers will be
required to maintain for each fiscal quarter in each
fiscal year a ratio of Operating Income to Interest
Expense as follows:
<TABLE>
<CAPTION>
1996 1997 1998
<S> <C> <C> <C>
NU (CONSOL.) 1.50:1.00 2.50:1.00 3.50:1.00
CL&P --- 3.50:1.00 4.50:1.00
WMECO --- 1.50:1.00 3.00:1.00
</TABLE>
For which purpose:
"OPERATING INCOME" of any Borrower shall mean, for any period, such
Borrower's consolidated operating income for such period, adjusted
as follows:
(i) INCREASED by the amount of income taxes paid by such Borrower
and its consolidated subsidiaries during such period, if and
to the extent deducted in the computation of such Borrower's
consolidated operating income for such period; and
(ii) INCREASED by the amount of any depreciation and amortization
deducted in the computation of such Borrower's consolidated
operating income for such period; and
(iii) DECREASED by the amount of any capital expenditures paid by such
Borrower or its consolidated subsidiaries to the extent not
deducted in the computation of such Borrower's consolidated
operating income for such period; and
"INTEREST EXPENSE" of any Borrower shall mean for any period,
the aggregate amount of any interest on consolidated Debt of
such Borrower and its Subsidiaries (including long-term and
short-term Debt).
HOLDING COMPANY DEBT: NU shall not create, incur or suffer to exist any
Debt, other than (i) Debt arising under the Facility and (ii) other Debt
not to exceed $300,000,000 at any one time outstanding.
OTHER AFFIRMATIVE AND
NEGATIVE COVENANTS: Customary for facilities of this type and substantially
similar to those contained in the Existing Facilities,
including but not limited to:
- Payment of taxes by each Borrower and its Principal Subsidiaries;
- Maintenance by each Borrower and its Principal Subsidiaries of
appropriate insurance;
- Preservation of existence of each Borrower and its Principal
Subsidiaries;
- Compliance in all material respects by each Borrower and its
Principal Subsidiaries with all applicable laws;
- Inspection of books, etc. of each Borrower and its Principal
Subsidiaries;
- Maintain and cause Principal Subsidiaries to maintain books
in accordance with GAAP; not change its accounting
policies or reporting practices other than as required by the
FASB or other accounting authorities;
- Conduct and cause each Principal Subsidiary to conduct its
primary business in substantially the manner conducted on
the Closing Date; without limiting the foregoing, no Borrower,
nor any subsidiary, shall sell, transfer or otherwise dispose of
(by lease or otherwise) any portion of its generation, transmission
or distribution assets in excess of 10% of the net utility plant
assets of such Borrower or subsidiary during the term of the
Facility;
- Maintenance of properties by each Borrower and its Principal
Subsidiaries;
- Obtain all governmental approvals except those the absence of which
would not have a material adverse effect;
- Maintain S&P and Moody's Ratings in respect of the Reference
Securities;
- In the case of NU, not create, assume or permit any Lien on the
stock of any of its Principal Subsidiaries;
- In the case of CL&P and WMECO, not create, assume or permit any
Lien on the stock of any of their respective Principal
Subsidiaries (if any) or create, assume or permit any other
Lien except for:
- liens existing on the Closing Date and their extensions,
renewals or replacements in each case to the extent of
the indebtedness secured thereby as of the Closing Date;
- liens created under their existing indentures;
- liens securing debt of subsidiaries owed to such Borrower
or to other subsidiaries of the same Borrower;
- purchase money liens and liens existing on property
(including subsidiary stock) at the time acquired;
- liens resulting from legal proceedings being contested in
good faith, so long as reserved in accordance with (and to
the extent required by) GAAP;
- liens created in favor of the other contracting party
in connection with advance payments and progress payments;
- liens in favor of any state or the United States;
- liens arising under capital leases, conditional sales
and similar agreements, including leases of nuclear fuel
from the Niantic Bay Fuel Trust;
- with respect to financings of pollution control equipment,
liens on funds, accounts and similar intangibles created or
arising under the relevant indenture and pledges of the
related loan agreement with the relevant issuing authority;
- the lien on the Millstone I nuclear unit created by the
Open End Mortgages and Trust Agreements, dated as of
October 1, 1986 made by CL&P and WMECO, respectively,
in favor of State Street Bank and Trust Company, as
successor trustee, to the extent of the indebtedness
secured thereby as of the Closing Date and, in the case
of any future indebtedness to be secured thereby, subject
to the limitations on incurrence of additional indebtedness
secured by such lien set forth elsewhere in this
Summary of Terms;
- liens on accounts receivable and power contracts resulting
from financing transactions;
- any other liens incurred in the normal course of business
other than to secure indebtedness; and
- extensions, replacements and renewals of the foregoing,
subject to certain limitations;
- In the case of NU, not merge with or into any other person or
entity, or acquire all or substantially all of the assets or stock
of any person or entity (whether directly or indirectly) for a
purchase price (including liabilities assumed) in excess of
$50,000,000 and then only if no Default or Event of Default shall
have occurred or be continuing; PROVIDED, that the foregoing
shall not apply to (i) acquisitions or other investments made
by or through NU's Charter Oak Energy subsidiary so long as the
aggregate amount of all such acquisitions and investments,
whether presently existing or to be made in the future, does
not exceed $200,000,000 and (ii) acquisitions made through
CL&P or WMECO in accordance with the next paragraph;
- In the case of CL&P and WMECO, not merge with or into any
other person or entity, or acquire all or substantially all of the
assets or stock of any person or entity, or sell, transfer or
otherwise dispose of (by lease or otherwise) all or any
substantial part of its assets, except for the following (and
then only if no Default or Event of Default shall have occurred
or be continuing and all regulatory approvals have been obtained):
- mergers, acquisitions or dispositions of or by any wholly-owned
subsidiary with, from or to another wholly-owned subsidiary;
- mergers or consolidations with or into another Borrower or
another wholly-owned subsidiary of NU;
- mergers or consolidations with or into another person, or
purchases of stock in or assets of another person, in each case
in connection with the exercise of "step-in" rights under pre-
existing contracts or pursuant to regulatory action and then
only subject to additional conditions similar to those contained
in the Existing Facilities;
- the purchase of a joint venture interest in a mutual insurance
company providing nuclear liability or nuclear property
replacement power insurance;
- sales of accounts receivable on reasonable commercial terms
(including a commercially reasonable discount) to obtain
short term funding;
Without limiting the generality of the foregoing, a sale, transfer
or disposition of 10% of the consolidated assets of a Borrower
(whether in one or a series of transactions) shall be deemed to
constitute a disposition of a "substantial part" of such
Borrower's assets;
- Cause or permit to cause any ERISA plan to terminate which would result
in a liability in excess of $1 million.
- If after the date of the Facility, any Borrower shall incur any secured
indebtedness or shall secure any outstanding indebtedness that is
presently unsecured in each case whether by the issuance of such
Borrower's first mortgage bonds or otherwise, such Borrower shall
cause the Facility to be secured equally and ratably with such other
indebtedness. The foregoing shall not apply to:
- collateral additions and substitutions made in the ordinary
course and in accordance with any Borrower's existing mortgage
indentures, or the existing terms of the Niantic Bay Fuel Trust;
- the issuance by either CL&P or WMECO of first mortgage bonds
to obtain funds for operations or investment or to replace
maturing first mortgage bonds (but no other indebtedness);
provided that:
- all such first mortgage bonds shall be sold in one or more
public offerings to investors (and not in privately negotiated
transactions with banks, insurance companies or similar
institutions) for cash in any amount, not less than the
fair market value of such first mortgage bonds at the time
of such issuance (less normal underwriting discounts and
commissions);
- all such first mortgage bonds shall mature after the initial
Termination Date of the Facility; and
- all such first mortgage bonds shall bear interest at a fixed
rate to maturity or otherwise not be subject to repricing
prior to the initial Termination Date of the Facility;
- issuances by CL&P or WMECO of first mortgage bonds to secure
presently outstanding floating rate pollution control bonds (but
not any letter of credit in respect thereof) upon conversion of
such bonds to a fixed rate mode, either to stated maturity or
for a period of years first expiring after the initial
Termination Date of the Facility; and
- obligations of a Borrower incurred after the Closing Date in
respect of tax-exempt pollution control and similar bonds
(whether as a result of the issuance of such bonds after the
Closing Date or the replacement after the Closing Date of a
retiring letter of credit bank) if the security therefor
consists only of the lien on the Millstone I nuclear unit
created by the Open End Mortgages and Trust Agreements,
dated as of October 1, 1986 made by CL&P and WMECO,
respectively, in favor of State Street Bank and Trust Company,
as successor trustee.
REPORTING
REQUIREMENTS:
Customary for facilities of this type and substantially
similar to those included in the Existing Facilities, including
but not limited to:
- Annual and quarterly financial statements;
- Annual and quarterly no-default certificates;
- Notices of certain ERISA events;
- Notices of material litigation;
- Notice of any change in each Borrower's short-term borrowing
limit as established by the SEC.
EVENTS OF DEFAULT:
The Events of Default under the Facility will be customary
for facilities of this type and substantially similar to those
included in the Existing Facilities, including but not limited to:
- Failure to pay principal when due or to pay interest or other
amounts within two days of the day when due;
- Misrepresentation;
- Failure to maintain existence, breach of financial covenants, breach
of negative covenants relating to mergers and sales of assets,
failure to notify of default;
- Breach of any other covenant not remedied within 30 days of notice
thereof from the Agent or any Lender;
- Cross-default to indebtedness in excess of $10,000,000 of a
Borrower or any of its Principal Subsidiaries;
- Bankruptcy and similar events affecting a Borrower or its
Principal Subsidiaries;
- Adverse judgment in excess of $10,000,000 against a Borrower
or its Principal Subsidiaries;
- NU shall cease to own all of the issued and outstanding common
stock of its Principal Subsidiaries, free and clear of any Lien;
- Change of control events as follows: (A) any Person or "group"
(within the meaning of Section 13(d) or 14(d) of the Securities
Exchange Act of 1934, as amended) shall either (1) acquire beneficial
ownership of more than 50% of any outstanding class of common stock of
NU having ordinary voting power in the election of directors of NU or
(2) obtain the power (whether or not exercised) to elect a majority of
NU's directors or (B) the Board of Directors of NU shall not consist of
a majority of Continuing Directors. "CONTINUING DIRECTORS" shall mean
the directors of NU on the Closing Date and each other director of NU,
if such other director's nomination for election to the Board of
Directors of NU is recommended by a majority of the then Continuing
Directors.
REMEDIES: Upon the occurrence and continuance of an Event of
Default, the Lenders will be able to exercise customary
remedies against any or all of the Borrowers, including
terminating the Lender's Commitments to such Borrowers
and accelerating the maturity of all amounts outstanding
under the Facility to such Borrowers.
ASSIGNMENTS AND
PARTICIPATIONS: The Lenders may assign their interests by novation or
otherwise in the loans and commitments under the
Facility with the prior approval of the Borrowers (which
will not be unreasonably withheld; no approval will be
required for assignments to affiliates of Lenders). The
Lenders may sell participation interests in the loans
and commitments under the Facility without the prior
approval of the Borrowers, provided that the Lenders
shall not afford any voting rights to participants
except with respect to changes proposed to interest
rates or amounts, principal amounts, fees, maturity and
material collateral releases. The parties to any
assignment shall pay to the Agent a processing and
recordation fee of $3,000.
COST AND YIELD
PROTECTION: The Facility documentation will include customary
provisions with respect to prepayments and breakage,
capital adequacy and capital requirements, increased
costs, illegality, change in circumstances, reserves,
withholding taxes and the like.
OTHER: The Facility documentation will include:
- provisions for indemnification of the Agent and Lenders and their
respective affiliates, officers, directors, employees, agents and
advisors for any liabilities and expenses arising out of the Facility
or the use of proceeds;
- normal agency provisions.
MAJORITY LENDERS: Lenders holding 66 2/3% of the Commitments, or if the
Commitments have been terminated or in the case of a
decision to exercise remedies on default, Lenders
holding 66 2/3% of the outstanding Advances.
The consent of all the Lenders will be required to
increase the size of the Facility, to extend the
maturity, to decrease interest rates or fees and for
similar changes to fundamental economic terms.
GOVERNING LAW: The Facility documentation will be governed by and
construed in accordance with the laws of the State of
New York; all parties to agree to waiver of jury trial.
COUNSEL TO THE AGENT: King & Spalding.
EXPENSES: The Borrower shall reimburse Citicorp Securities and
Citibank for all reasonable out-of-pocket expenses
(including fees and expenses of counsel to the Agent)
incurred by them in the negotiation, syndication and
execution of the Facility. Such expenses shall be
reimbursed by the Borrower upon presentation of a
statement of account, regardless of whether the
transaction contemplated is actually completed or the
Facility documents are signed.All other terms and
conditions of the Facility shall be subject to further
discussion and mutual agreement.
THE ABOVE TERMS DO NOT CONSTITUTE AN OFFER OR COMMITMENT AND ARE SUBJECT TO
NEGOTIATION, CREDIT APPROVAL AND SATISFACTORY DOCUMENTATION.
<PAGE>
EXHIBIT A of EXHIBIT B.2
PRICING SUPPLEMENT
The Applicable Rating Levels, Applicable Margins and Facility Fees for each
Borrower shall be determined as follows:
<TABLE>
<CAPTION>
APPLICABLE RATING
LEVEL
<S> <C> <C> <C>
NU CL&P WMECO
Level I BBB+ and Baa1 BBB+ and Baa1 BBB+ and Baa1
Level II BBB and Baa2 BBB and Baa2 BBB and Baa2
Level III BBB- and Baa3 BBB- and Baa3 BBB- and Baa3
Level IV BB+ and Ba1 BB+ and Ba1 BB+ and Ba1
Level V BB and Ba2 or lower BB and Ba2 or lower BB and Ba2 or lower
</TABLE>
<TABLE>
<CAPTION>
APPLICABLE MARGIN
APPLICABLE ` NU CL&P AND WMECO
RATING LEVEL
EURODOLLAR RATE BASE RATE EURODOLLAR RATE BASE RATE
ADVANCES ADVANCES ADVANCES ADVANCES
<S> <C> <C> <C> <C>
Level I 35.0 0 35.0 0
Level II 37.5 0 37.5 0
Level III 50.0 0 50.0 0
Level IV 87.5 100.0 87.5 100.0
Level V 100.0 100.0 100.0 100.0
</TABLE>
<TABLE>
<CAPTION>
FACILITY FEE
APPLICABLE RATING LEVEL NU CL&P AND WMECO
<S> <C> <C>
Level I 17.5 15
Level II 20.0 17.5
Level III 25.0 20.0
Level IV 50.0 37.5
Level V 62.5 50.0
</TABLE>
<PAGE>
EXHIBIT D.3
February 14, 1996
Dr. Sarah P. Voll, Ph.D.
Executive Director and Secretary
State of New Hampshire
Public Utilities Commission
8 Old Suncook Road, Building No. 1
Concord, New Hampshire 03101-7319
RE: Public Service Company of New Hampshire
Petition for Waiver of Short Term Debt Limit
of Puc. 312.01 and for Approval to Mortgage
Property Pursuant to RSA 369:2 to Secure Short Term Debt
Dear Dr. Voll,
Enclosed please find an original and eight copies of Public Service
Company of New Hampshire's "Petition for Waiver of Short Term Debt Limit of
Puc. 312.01 and for Approval to Mortgage Property to Secure Short Term Debt" in
connection with the amendment, restatement and extension of PSNH's existing
Revolving Credit Agreement. Also enclosed is an original and eight copies of
the supporting testimony of David R. McHale, with attachments. Copies of this
material have also been provided to the Office of the Consumer Advocate.
As discussed in the Petition, PSNH proposes to amend, restate and
extend the existing Revolving Credit Agreement to (i) convert the borrowings
under the Revolving Credit Agreement from long term to short term by amending
the maturity of any borrowing under the agreement such that borrowings can not
exceed 270 days, (ii) increase the aggregate principal amount available to PSNH
from $125 million to $225 million for a one year period by adding to
the three year $125 million Revolving Credit Agreement an additional $100
million 364 day revolving credit facility which will expire on May 14, 1997,
(iii) extend the maturity of the resulting $125 million short term Revolving
Credit Agreement for three years until May 14, 1999 and (iv) continuing the
existing Collateral Agency Agreement and second PSNH Mortgage as security for
short term borrowings under the Amended and Restated Revolving Credit
Agreement.
PSNH plans to utilize the short term credit facility resulting from the
amendment, restatement and extension of the existing Revolving Credit Agreement
in connection with the retirement of the $172.5 million Series A First Mortgage
Bonds maturing on May 15, 1996, to meet the requirements of potential
wood-fired small power producer buyouts and to fund normal working capital
requirements. To ensure availability of funds for the bond retirement, the
closing of the proposed transaction is scheduled for April 30, 1996. To allow
time for the now thirty day rehearing period of RSA 541:3 to expire prior to
closing, PSNH respectfully requests that the Commission notice this matter and
adopt a schedule which would result in the issuance of a final Commission Order
no later than March 29, 1996.
Furthermore, as the proposed terms and conditions of amended, restated
and extended Revolving Credit Facility are not expected to be substantially
different from the terms and conditions of the existing Revolving Credit
Facility, approved by the Commission in DR 89-244, Order No. 19,889, and the
Second Series D Letter of Credit and Reimbursement Agreement dated as of May 1,
1995, approved by the Commission in DF 95-072, Order No. 21,585, and
existing second PSNH mortgage and associated Collateral Agency Agreement,
approved by the Commission DR 89-244, Order No. 19,889, will remain in place,
PSNH submits that no investigation or hearing in this matter is required.
Accordingly, PSNH requests that the Commission consider issuing the requested
approval pursuant to an Order NISI. PSNH proposes that the Commission issue an
Order NISI on or before February 26, 1996, for publication on February 28,
1996, with interested parties filing written statements or comments or
requesting an opportunity to be heard by March 8, 1996, and unless otherwise
ordered, the Order would be effective March 18, 1996. This proposed schedule
would allow time for hearing, if necessary, and the expiration of the rehearing
period noted above prior to the currently scheduled April 30, 1996 closing
date.
If you have any questions or require any additional information
regarding this filing, please let either me or Jane Seidl know. Thank you for
your prompt attention to this matter.
Very truly yours,
February 14, 1996 By: /s/_____________________________
Catherine E. Shively
Senior Counsel
Public Service Company of New Hampshire
1000 Elm Street P.O. Box 330
Manchester, New Hampshire 03105
(603) 634-2326
cc: Michael W. Holmes, Esq.
Office of the Consumer Advocate (with enclosures)
<PAGE>
THE STATE OF NEW HAMPSHIRE
BEFORE THE NEW HAMPSHIRE PUBLIC UTILITIES COMMISSION
Docket No. DF 96-048
PETITION OF PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
FOR WAIVER OF SHORT TERM DEBT LIMIT OF PUC. 312 AND
FOR APPROVAL TO MORTGAGE PROPERTY PURSUANT TO
RSA 396:2 TO SECURE SHORT TERM DEBT
NOW COMES Public Service Company of New Hampshire and petitions the New
Hampshire Public Utilities Commission (the "Commission" or "NHPUC") for (i) a
specific order of the Commission pursuant to RSA 369:7, waiving Puc. 312.01
pursuant to Puc. 201.05, authorizing until May 14, 1997 a short-term debt limit
of $225 million, which is in excess of ten percent (10%) of net assets less
depreciation and (ii) authorization pursuant to RSA 369:2 to continue the
existing PSNH Mortgage as security for short term debt pursuant to the terms
and conditions of the proposed Revolving Credit Agreement. These approvals are
requested in connection with the amendment, restatement and extension of PSNH's
existing $125 million Revolving Credit Agreement and associated second mortgage
(the "PSNH Mortgage"). In support of this petition PSNH says:
1. On July 20, 1990, in Docket No. DR 89-244, the NHPUC issued its
Order No. 19,889, which among other things, approved the reorganization of PSNH
and PSNH's acquisition by Northeast Utilities. In connection with its approval
of the PSNH reorganization and acquisition by Northeast Utilities, the
Commission approved the borrowing of up to $200 million from time to time by
PSNH from a group of banks under a revolving credit facility and the
granting of a second mortgage on substantially all of PSNH's present and future
New Hampshire property to secure both the revolving credit facility and a $487
million term credit facility. DR 89-244, Report and Order No. 19,889, pp.
187-189 (1990).
2. In connection with its reorganization, PSNH entered into a
Revolving Credit Agreement dated May 1, 1991 among PSNH, the banks named
therein and Bankers Trust Company, Chemical Bank and Citibank N.A., as
co-agents and Chemical Bank as administrative agent. PSNH also entered into a
Collateral Agency Agreement and PSNH Mortgage securing borrowings under the
Revolving Credit Agreement and Term Credit Agreement. Pursuant to the
terms and conditions of the Revolving Credit Agreement, the credit line was
reduced from $200 million to $125 million on June 5, 1992, the date of the
merger between PSNH and Northeast Utilities. The Commission approved extension
of the Revolving Credit Agreement from May 14, 1994 to May 14, 1996 in Docket
No. DF 94-039. DR 94-039, Order No. 21,180 (1994).
3. PSNH proposes to amend, restate and extend the existing
Revolving Credit Agreement to (i) convert the borrowings under the Revolving
Credit Agreement from long term to short term by amending the maturity of any
borrowing under the agreement such that borrowings can not exceed 270 days,
(ii) increase the aggregate principal amount available to PSNH from $125
million to $225 million for a one year period by adding to the three year $125
million Revolving Credit Agreement an additional $100 million 364 day revolving
credit facility which will expire on May 14, 1997, (iii) extend the maturity of
the existing $125 million Revolving Credit Agreement for three years until May
14, 1999 and (iv) continuing the existing Collateral Agency Agreement and PSNH
Mortgage as security for short term borrowings under the Amended and Restated
Revolving Credit Agreement.
4. The proposed $225 million, secured short term facility has been
designed to provide flexibility in connection with the retirement of the $172.5
million Series A First Mortgage Bonds which will mature on May 15, 1996, to
meet the requirements of potential wood-fired small power producer buyouts and
to fund normal working capital requirements. The $125 million three year and
$100 million one year structure of the facility has been designed to
reflect the bridge of short term cash needs of the company associated with
these anticipated financings.
5. PSNH is currently in negotiations with the banks with respect to
the terms and conditions of the amended Revolving Credit Agreement. The
covenants are not expected to be materially different than those included in
the current Revolving Credit Agreement and will be compatible with those
negotiated in the Second Series D Letter of Credit and Reimbursement
Agreement approved by the Commission in Docket No. DR 95-072, Order. No.
21,585. Additional information regarding the terms, conditions and covenants
anticipated in the Revolving Credit Agreement is included in the supporting
testimony of David R. McHale, Attachment C. The proposed form of the amended,
restated and extended Revolving Credit Agreement will be filed with the
Commission when it is available. The current Collateral Agency Agreement and
the PSNH Mortgage will remain in place without significant amendment
or modification, except that Chemical Bank will be substituted as the
Collateral Agent in place of the current agent, Bankers Trust Company.
6. Pursuant to RSA 369:7, PSNH requests a specific order of the
Commission waiving Puc. 312.01, pursuant to Puc. 201.05, authorizing for a one
year period a short-term debt limit of $225 million, which is approximately $25
million in excess of ten percent (10%) of PSNH's net assets less depreciation.
Under Puc. 201.05, the Commission may waive the requirements of Puc. 312.01 if
it finds that the waiver is in the public interest and that existing
peculiarities or unusual circumstance warrant the departure from the rule.
Waiver of the requirement is in the public interest since it is for a limited
one year period ending on May 14, 1997 only and the resulting increase in short
term debt permits PSNH to utilize the most economic alternative to (i) meeting
the maturity of the $172.5 Series A First Mortgage Bond, (ii) meet the
requirements of potential wood-fired small power producer buyouts and (iii)
fund normal working capital requirements.
7. PSNH also seeks authorization pursuant to RSA 369:2 to continue
the existing PSNH Mortgage and associated Collateral Agency Agreement as
security for short term debt pursuant to the terms and conditions of the
proposed amended, restated and extended Revolving Credit Agreement.
8. Pursuant to RSA 369:3, estimated expenses of the proposed
Revolving Credit Facility are set forth in the supporting testimony of
David R. McHale, Attachment D.
WHEREFORE, PSNH respectfully requests that Commission:
a. Issue a specific order of the Commission pursuant to RSA 369:7,
waiving Puc. 312.01, pursuant to Puc. 201.05, and authorizing a
short-term debt limit of $225 million for PSNH for the period
May 14, 1996 to May 14, 1997, finding that waiver of Puc 312.01
is in the public interest since the resulting increase in short
term debt permits PSNH to utilize the most economic alternative
to meet the maturity of the $172.5 million Series A First
Mortgage Bond, (ii) meet the requirements of potential future
financings and (iii) fund normal working capital requirements.
b. Determine under RSA 369:2 that the continuation of the existing
Collateral Agency Agreement and second PSNH Mortgage granted by
PSNH on substantially all of its present and future New
Hampshire property, to secure payment of short term debt under
the terms and conditions of the proposed amended, restated and
extended Revolving Credit Agreement is consistent with
the public good and is approved; and
c. Grant such other or further relief and make such other or
further findings or orders as shall be just and reasonable.
Respectfully submitted,
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
February 14, 1996 By: /s/_________________________________
Jane P. Seidl
Senior Counsel
Northeast Utilities Service Company
107 Selden Street
Berlin, Connecticut 06037
(203) 665-5051
By: /s/________________________________
Catherine E. Shively
Senior Counsel
Public Service Company of New Hampshire
1000 Elm Street P.O. Box 330
Manchester, New Hampshire 03101
(603) 634-2326
<PAGE>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
APPLICATION WITH RESPECT TO WAIVER OF SHORT-TERM DEBT LIMIT
OF PUC.312.01 AND FOR APPROVAL TO MORTGAGE PROPERTY PURSUANT TO
RSA 369:2 TO SECURE SHORT-TERM DEBT
TESTIMONY OF DAVID R. MCHALE
Q. Would you please state your name, business address and position of
employment?
A. My name is David R. McHale. My business address is Selden Street,
Berlin, Connecticut. I am Assistant Treasurer-Finance of Public
Service Company of New Hampshire ("PSNH"), Northeast Utilities ("NU"),
Northeast Utilities Service Company ("NUSCO") and other NU
subsidiaries, including The Connecticut Light and Power Company and
Western Massachusetts Electric Company.
Q. Would you please describe your duties as Assistant Treasurer-Finance?
A. I am responsible for the capital requirements of NU and the system's
subsidiaries, including PSNH. I have been employed by NU for 14 years
and have experience prior to my current position, as Manager-Project
and Short-term Finance, Manager-Investor Relations, and various analyst
positions in Corporate Financial Forecasting and Marketing.
Q. Are you familiar with the description of the proposed financing set
forth in the application in this proceeding?
A. Yes.
Q. Would you please describe the petition which is the subject of this
proceeding?
A. Yes. This is a petition requesting an order of the Commission pursuant
to RSA 369:7, waiving Puc. 312.01 pursuant to Puc. 201.05 authorizing a
short-term debt limit in excess of ten percent (10%) of net assets and
authorizing the mortgaging of property in connection with the issuance
of short-term debt pursuant to RSA 369:2 in connection with the
amendment and extension of PSNH's existing $125 million Revolving
Credit Agreement. PSNH proposes to amend and extend the existing
Revolving Credit Agreement to (i) convert the $125 million of
borrowings under the Revolving Credit Agreement from long-term to
short-term by amending the maturity of any borrowing under the
agreement, such that borrowings cannot exceed 270 days, (ii) extend the
maturity of the resulting $125 million short-term Revolving Credit
Agreement for three years, (iii) increase the aggregate principal
amount available to PSNH from $125 million to $225 million by adding to
the three year $125 million Revolving Credit Agreement an additional
$100 million 364-day revolving credit facility, and (iv) continue the
existing Collateral Agency Agreement and PSNH Mortgage as security for
short-term borrowings under the Amended and Restated Revolving Credit
Agreement.
Q. Please explain the circumstances underlying the extension and amendment
of the Revolving Credit Agreement.
A. On July 20, 1990, in Docket No. DR 89-244, the New Hampshire Public
Utilities Commission issued Order No. 19,889 which, among other things,
approved the reorganization of PSNH and PSNH's acquisition by Northeast
Utilities. In connection with its approval of the PSNH reorganization
and acquisition by Northeast Utilities, the Commission approved the
borrowing of up to $200 million from time to time by PSNH from a group
of banks under a revolving credit facility and the granting of a second
mortgage on substantially all of PSNH's present and future New
Hampshire property to secure both the revolving credit facility and a
$487 million term credit facility. DR 89-244, Report and Order No.
19,889, pp. 187-189 (1990).
In connection with its reorganization, PSNH entered into a Revolving
Credit Agreement dated May 1, 1991 among PSNH, the banks named therein
and Bankers Trust Company, Chemical Bank and Citibank, N.A., as
co-agents, and Chemical Bank, as administrative agent. PSNH also
entered into a Collateral Agency Agreement and PSNH Mortgage securing
borrowings under the Revolving Credit Agreement and Term Credit
Agreement. Pursuant to the terms and conditions of the Revolving
Credit Agreement, the credit line was reduced from $200 million to
$125 million on the merger date, June 5, 1992. The Commission
approved the extension of the Revolving Credit Agreement and associated
second mortgage from May 14, 1994 to May 14, 1996 in
Docket No. DF 94-039. DR 94-039, Order No. 21,180 (1994).
Q. Why is PSNH seeking a specific order of the Commission pursuant to RSA
369:7, waiving Puc. 312.01 pursuant to Puc. 201.05 and authorizing a
short-term debt limit in excess of ten percent (10%) of net assets?
A. A calculation of PSNH's short-term debt limit based on unaudited
financial statements as of December 31, 1995 has been included herein
as Attachment A. The resulting calculation, as defined under Rule
312.01, would limit PSNH's short-term debt borrowings to $199,879,887.
Since the short-term debt limit calculated in accordance with Puc.
312.01 is below the proposed $225 million revolving credit facility
amount, PSNH requests a specific Commission order approving a $225
million short-term debt limit for PSNH.
Q. Please describe why PSNH is proposing to increase its size of the
Revolving Credit Agreement to $225 million?
A. The proposed $225 million credit facility has been designed to (i)
provide financing for the retirement of PSNH's $172.5 million Series A
First Mortgage Bond issue which will mature on May 15, 1996, (ii) meet
the requirements of potential future wood-fired small power buyouts and
(iii) fund normal working capital requirements. A two year cash flow
statement for PSNH, including assumptions which support the increase in
size of the facility., has been provided in Attachment B.
Q. Please describe how PSNH's short-term debt forecast, as presented in
Attachment B, warrants a $225 million Revolving Credit Agreement and
corresponding increase in the Company's short-term debt limit.
A. During 1996, two distinct events could, independent of each other,
increase PSNH's short-term debt requirements. The first event, which
is certain, is the maturity of the $172.5 million Series A First
Mortgage Bonds on May 15, 1996. PSNH anticipates meeting this maturity
through drawings under the proposed $225 million credit facility
which, according to company estimates, would be paid down over the
following months, thereby eliminating the need for a long-term debt
issue. Although PSNH estimates that cash on hand will approach $92
million at the time of the bond maturity, prudent cash management would
dictate contingency planning and the assumption that no cash would
be available on the date of the bond maturity. In this conservative
case, PSNH would be able to utilize the full amount of the revolving
credit facility and still meet normal working capital requirements with
a short-term debt limit of $225 million; a lower limit may jeopardize
PSNH's liquidity position. Within a year's time, as short-term debt
levels approach normal levels, PSNH would have the option to cancel the
364-day component of the revolving credit line.
A second event which could increase PSNH's short-term debt requirement
is the potential financing of several non-utility generator wood-fired
small power producer buyouts. The forecast in Attachment B assumes
that a financing of approximately $130 million will occur in July 1996.
This event would increase PSNH's short-term debt needs to $207 million
in that month. Although short-term debt levels would rise if this
financing were to occur, the forecast assumes repayment of amounts
drawn on the revolving credit line over the next twelve months, thereby
potentially eliminating the need for a long-term bond issuance.
Q. What "existing peculiarity or unusual circumstances" justifies a waiver
of the short-term debt limits established by Puc 312.01 and why is the
waiver in the public interest?
A. PSNH is seeking authority to increase its short-term debt limit to the
estimated amount required to (i) fund the retirement of $172.5 million
Series A First Mortgage Bond maturity on May 15, 1996, (ii) fund
approximately $130 million of potential wood fired small power producer
buyouts, and (iii) meet normal working capital requirements.
Current cash flow projections indicate that internally generated funds
will be sufficient to pay down anticipated short-term debt to the
short-term debt limits established by Puc. 312.01 over the next twelve
months. A one year increase in PSNH's short-term debt limit is
preferable to the issuance of long-term debt under these circumstances.
Waiver of the requirement is in the public interest since the increase
in the short-term debt limit is for one year only and the resulting
increase will permit PSNH to potentially avoid unnecessary issuance
of long-term debt and utilize the most economic financing alternative
for (i) meeting the retirement of the $172.5 million Series A First
Mortgage Bonds maturing on May 15, 1996, (ii) meeting the requirements
of potential future wood-fired small power producer buyouts, and
(iii) funding normal working capital requirements.
Q. Could there be a series of incidents which trigger the need to issue a
long-term bond?
A. Yes. If the maturity of the $172.5 million Series A First Mortgage
Bond and the financing of the non-utility generator wood-fired small
power producer buyouts occur within a narrow time frame of each other,
and lower cash flows than forecast materialize, it could be feasible
that PSNH would be in a situation which would warrant the need to
issue a long-term bond. Under those conditions PSNH would petition the
Commission for approval to issue a First Mortgage Bond.
Q. Would you please describe the terms and conditions of the proposed
financing?
A. PSNH is currently in negotiations with certain banks with respect to
the terms and conditions applicable to the Amended and Restated
Revolving Credit Agreement. Attachment C sets forth general terms,
conditions, and covenants which may be included as part of the proposed
facility, subject to final negotiation.
The covenants will not be materially different than those included in
the current Revolving Credit Agreement. To ensure consistency among
the PSNH credit facilities, however, the covenants will be revised
to be compatible with those negotiated in connection with the Second
Series D Letter of Credit and Reimbursement Agreement dated as of
May 1, 1995 and approved by the Commission in DF 95-072,
Order No. 21,585 (1995).
Under the Amended and Restated Revolving Credit Agreement, two
financial ratios will be utilized to measure PSNH's performance:
a leverage test and an interest coverage ratio. PSNH will be required
to maintain a common equity to total capitalization ratio of .285 to
1.00 through June 30, 1997 and .300 to 1.00 from July 1, 1997 through
the termination date of the credit facility. Based on the unaudited
financial statements as of December 31, 1995, PSNH's ratio of common
equity to total capitalization was .364. PSNH will also be required to
maintain a ratio of operating income to interest expense of 1.75
to 1.00 through June 30, 1997 and 2.00 to 1.00 through the
termination date of the facility. Based on unaudited financial
statements as of December 31, 1995, PSNH's ratio of operating income
to interest expense was 2.74.
Q. Will the current administrative agent or mix of lending banks change
for the proposed financing?
A. Chemical Bank will remain administrative agent for the Amended and
Restated Revolving Credit Agreement. Due to the increase in the size
of the facility to $225 million, the current mix and lending
commitments of the 19 participating banks will change. There will be
no co-agents for the Amended and Restated Revolving Credit Agreement,
but rather co-managers who will support the facility through a larger
lending commitment.
Q. How will the rate of interest be determined on any borrowing?
A. Under the proposed terms of the Amended and Restated Revolving Credit
Agreement, advances will bear interest, at PSNH's option, on one or
more of the following four bases: (i) Eurodollar rate, (ii) alternative
base rate, (iii) certificate of deposit rate, or (iv) competitive
auction facility advances. A summary of the borrowing options and
their applicable margins has been included in the terms and conditions
summarized in Attachment C.
Q. What fees or expenses are expected to be incurred by PSNH in connection
with the proposed transaction?
A. Consistent with the current Revolving Credit Agreement, it is expected
that PSNH will pay the following fees in connection with the proposed
transaction, (i) one-time upfront and arrangement fees, (ii) annual
administrative and collateral agent fees, and (iii) quarterly
commitment or facility fees. In connection with the proposed amendment
and extension of the Revolving Credit Agreement, it is estimated total
fees for the facility will be $1,642,500 over the maximum proposed
three year facility term. A detailed calculation and summary of fees
and expenses has been included herein as Attachment D.
Q. Will PSNH's obligations under the amended Revolving Credit Agreement
continue to be secured?
A. Yes. PSNH's obligations under the Amended and Restated Revolving
Credit Agreement will continue to be secured by the original second
mortgage on PSNH's present and future New Hampshire property (the "PSNH
Mortgage") and associated Collateral Agency Agreement which were
approved by the Commission in DR 89-244, Order No. 19,889. Minor
amendments to the mortgage to reflect the proposed transaction may be
necessary, but no significant substantive amendments are proposed.
Chemical Bank will be substituted as the Collateral Agent and Mortgagee
in place of the current agent, Bankers Trust Company.
Q. How will Commission approval of this facility affect PSNH short-term
borrowing from the NU Money Pool or other available sources?
A. PSNH will continue to have the ability to borrow on a short-term basis
from the NU Money Pool under the same terms and conditions as
previously presented to the Commission. PSNH, however, cannot plan on
the availability of Money Pool funds in the amounts required over the
next three years, as such amounts may or may not be available. If both
Money Pool and Revolving Credit Facility funds were available and
appropriate to meet a particular short-term need, PSNH would borrow
from the least expensive source. PSNH's combined borrowing from the
proposed Revolving Credit Facility, the Money Pool or any other
available source of short-term debt will not exceed the $225 million
short-term debt limit proposed in this proceeding.
Q. What obligation will the banks have to roll-over the short-term
borrowings during the three year term of the $125 million facility?
A. Provided no Event of Default or Unmatured Default as defined in the
Amended and Restated Revolving Credit Agreement has occurred, the banks
will be obligated to make advances to PSNH upon request, up to the $125
million limit of the facility.
Q. Have you provided financial statements of the Company?
A. Yes. Financial results for the quarterly period ended September
30,1995 (Form 10-Q) are enclosed. Also provided are unaudited
financial results for PSNH as of December 31, 1995.
Q. Have you prepared exhibits which demonstrate the effect of borrowing
under the Amended and Restated Revolving Credit Agreement?
A. Yes. The statements included as part of Attachment E show the proforma
effects of full borrowing under the proposed amended revolving credit
facility and assume $172.5 million of the proceeds will be used to
retire the Series A First Mortgage Bonds on May 15, 1996 and the
balance to cash to be used for future working capital requirements.
Q. What regulatory body has jurisdiction over the Amended and Restated
Revolving Credit Agreement?
A. New Hampshire Public Utilities Commission approval of the proposed
transaction is required due to (i) the requirement that PSNH obtain a
specific order of the Commission pursuant to RSA 369:7, waiving Puc.
312.01 pursuant to Puc. 201.05 and authorizing a short-term debt limit
in excess of ten percent (10%) of net assets less depreciation, and
(ii) the continuation of the PSNH Mortgage as security for short-term
borrowings.
Q. What regulatory approvals must be obtained before the Company will be
able to carry out the proposed transaction?
A. No regulatory approval, other than the approvals of the New Hampshire
Public Utilities Commission described above, is required in connection
with the proposed short-term transaction. The approval of the
Securities and Exchange Commission ("SEC") under the Public Utility
Holding Company Act of 1935 ("1935 Act") is no longer required to be
obtained by utility subsidiaries of registered holding companies for
financings which are approved by state regulators such as the
Commission, pursuant to SEC Rule 52 issued under the 1935 Act.
Q. When does PSNH need a Commission Order in this docket?
A. PSNH respectfully requests that the Commission issue an Order in this
docket that is effective no later than March 29, 1996. PSNH plans to
close the proposed transaction by April 30, 1996. If a final
Commission Order is issued by March 29, 1996, this will allow
for expiration of the thirty day rehearing period of RSA 541:3 prior to
the closing date.
Q. Mr. McHale, in your opinion, are the proposed terms and conditions of
the Amended and Restated Revolving Credit Agreement subject to this
petition consistent with the public good?
A. Yes. The proposed terms and conditions of the Amended and Restated
Revolving Credit Agreement provide PSNH with the most economic
alternative to (i) meeting the maturity of the Series A First Mortgage
Bonds, (ii) meeting the requirements of potential future wood-fired
small power producer buyouts, and (iii) funding normal working capital
requirements.
Q. Does this conclude your testimony?
A. Yes, it does.
<PAGE>
ATTACHMENT A
PSNH SHORT-TERM DEBT CEILING
AS OF DECEMBER 31, 1995
PER UNAUDITED YEAR-END FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S> <C>
Net Utility Plant $1,613,906,000
Less Seabrook Power Contract 910,837,128
Total Net Utility Plant 703,068,872
Total Other Property/Investments 22,500,000
Total Current & Accrued Assets 199,474,000
Total Deferred Debits (Regulatory Assets) 1,073,756,000
Total Assets & Other Debits 1,998,798,872
10% Ceiling x .10
PSNH Short-term Debt Limit $ 199,879,887
NOTE : The above short-term debt limit has been calculated in accordance withPuc. 312.01.
</TABLE>
<PAGE>
ATTACHMENT B
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
CASHFLOW STATEMENT ASSUMPTIONS
1996/1997 FORECAST
- Reflects the 1995 year-end actual balances.
- Reflects the sales forecast dated 8/25/95.
The average five-year growth rate is 1.4%.
1996 1997
GWH's 7,085 7,225
- Base revenue reflects the final 5.5% increases on 6/1/96.
- FPPAC is in existence through year-end 1996.
- Reflects CERA May 1995 projection of fuel costs for oil and the May
1995 J.D. Energy forecast for coal.
x
- Seabrook is assumed to operate at an 86% capacity factor between
refueling outages.
- Capital expenditures and non-fuel O&M reflect the 1996 Business Plan
Base Case and are summarized as follows:
1996 1997
Capital (millions) 52 38
a) O&M (millions) 182 168
b)
c)
- Estimated regular tax NOL carry forward as of 12/31/95 is 572 million.
These NOL's can only be used to offset taxable income of PSNH and may not
be used to offset taxable income of any other members of the NU affiliated
group.
x
x
x
x
x
- The forecast assumes a contingency for financing non-utility generator
buyouts (woodburners) for the amounts indicated below:
x
1996 1997
Bridgewater 52.00 -
a) Hemphill 6.58 6.58
Whitefield 7.95 7.95
Bio Energy 35.00 1.95
Pinetree 30.00 -
Total 131.53 16.48
<TABLE>
<CAPTION>
ATTACHMENT B
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
CASH FLOW STATEMENT
1996 FORECAST (WITH AND W/O CONTINGENCY FOR WOODBURNERS)
<C> <C> <C> <C> <C> <C> <C> <C> <C>
JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT
(1)BEGINNING CASH BALANCE 19,445 34,795 60,455 77,231 91,946 0 0 0 500
(2)Total Cash Receipts 76,775 81,031 78,847 74,745 73,068 70,666 68,404 69,793 70,273
(3)Total Cash Disbursements 57,941 51,100 57,391 55,935 78,135 68,146 49,216 45,978 54,771
(4)CASH GENERATION 18,834 29,931 21,456 18,810 (5,067) 2,520 19,188 23,815 15,502
BEFORE CONSTRUCTION (2-3)
(5)Construction Expenditures 3,484 4,271 4,680 4,095 3,989 4,052 3,984 3,944 3,952
(6)CASH BEFORE MATURITY (1+4-5) 34,795 60,455 77,231 91,946 82,890 (1,532) 15,204 19,871 12,050
(7)Total Bond Maturity 0 0 0 0 (172,500) 0 0 0 0
(8)CASH AFTER MATURITY (6+7) 34,795 60,455 77,231 91,946 (89,610) (1,532) 15,204 19,871 12,050
(9)Debt Borrowed 0 0 0 0 89,610 1,532 0 0 0
(10Debt Repaid 0 0 0 0 0 0 (15,204) (19,371) (11,550)
(11NET FINANCINGS (9+10) 0 0 0 0 89,610 1,532 (15,204) (19,371) (11,550)
(12ENDING CASH BALANCE (8+11) 34,795 60,455 77,231 91,946 0 0 0 500 500
(13SHORT-TERM DEBT (11 YTD) 0 0 0 0 89,610 91,142 75,938 56,567 45,017
(14CONTINGENCY FOR FINANCING
NON-UTILITY GENERATOR
BUYOUTS (WOODBURNERS) 0 0 0 0 0 0 131,530 0 0
(15SHORT-TERM DEBT PLUS
CONTINGENCY (13+14 YTD) 0 0 0 0 89,610 91,142 207,468 188,097 176,547
</TABLE>
<TABLE>
<C> <C> <C> <C>
FULL
OCT NOV DEC YEAR
(1)BEGINNING CASH BALANCE 500 500 0 19,445
(2)Total Cash Receipts 71,352 73,206 76,884 663,602
(3)Total Cash Disbursements 51,539 78,549 62,975 518,613
(4)CASH GENERATION 19,813 (5,343) 13,909 144,989
BEFORE CONSTRUCTION (2-3)
(5)Construction Expenditures 3,948 3,932 4,073 36,451
(6)CASH BEFORE MATURITY (1+4-5) 16,365 (8,775) 9,836 127,983
(7)Total Bond Maturity 0 0 0 (172,500)
(8)CASH AFTER MATURITY (6+7) 16,365 (8,775) 9,836 (44,517)
(9)Debt Borrowed 0 8,775 0 91,142
(10Debt Repaid (15,865) 0 (9,336) (46,125)
(11NET FINANCINGS (9+10) (15,865) 8,775 (9,336) 45,017
(12ENDING CASH BALANCE (8+11) 500 0 500 500
(13SHORT-TERM DEBT (11 YTD) 29,152 37,927 28,591 28,591
(14CONTINGENCY FOR FINANCING
NON-UTILITY GENERATOR
BUYOUTS (WOODBURNERS) 0 0 0 131,530
(15SHORT-TERM DEBT PLUS
CONTINGENCY (13+14 YTD) 160,682 169,457 160,121 160,121
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<C> <C> <C> <C> <C> <C> <C> <C> <C>
ATTACHMENT B
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
CASH FLOW STATEMENT
1997 FORECAST (WITHOUT CONTINGENCY FOR WOODBURNERS)
<C> <C> <C> <C> <C> <C> <C> <C> <C>
JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT
(1)BEGINNING CASH BALANCE 500 500 34,232 64,296 85,853 66,997 68,686 92,258 115,645
(2)Total Cash Receipts 84,568 88,398 86,867 82,730 80,713 77,281 74,222 74,939 76,110
(3)Total Cash Disbursements 51,799 50,467 53,690 58,060 71,456 72,479 47,537 48,439 57,082
(4)CASH GENERATION 32,769 37,931 33,177 24,670 9,257 4,802 26,685 26,500 19,028
BEFORE CONSTRUCTION (2-3)
(5)Construction Expenditures 5,264 3,113 3,113 3,113 3,113 3,113 3,113 3,113 3,113
(6)CASH BEFORE RETIREMENT (1+4-5) 28,005 35,318 64,296 85,853 91,997 68,686 92,258 115,645 131,560
(7)Cash Retirements-Preferred Sto 0 0 0 0 (25,000) 0 0 0 0
(8)CASH AFTER RETIREMENT (6+7) 28,005 35,318 64,296 85,853 66,997 68,686 92,258 115,645 131,560
S/T Debt (12/31/96 Bal w/o woo 28,591
(9)Debt Borrowed 0 0 0 0 0 0 0 0 0
(10Debt Repaid (27,505) (1,086) 0 0 0 0 0 0 0
(11NET FINANCINGS (9+10) (27,505) (1,086) 0 0 0 0 0 0 0
(12ENDING CASH BALANCE (8+11) 500 34,232 64,296 85,853 66,997 68,686 92,258 115,645 131,560
(13SHORT-TERM DEBT (11 YTD) 1,086 0 0 0 0 0 0 0 0
</TABLE>
<TABLE>
<C> <C> <C> <C>
FULL
OCT NOV DEC YEAR
(1)BEGINNING CASH BALANCE 131,560 155,383 150,896 500
(2)Total Cash Receipts 77,080 79,178 84,150 725,828
(3)Total Cash Disbursements 50,144 80,552 67,278 511,009
(4)CASH GENERATION 26,936 (1,374) 16,872 214,819
BEFORE CONSTRUCTION (2-3)
(5)Construction Expenditures 3,113 3,113 3,113 30,168
(6)CASH BEFORE RETIREMENT (1+4-5) 155,383 150,896 164,655 185,151
(7)Cash Retirements-Preferred Sto 0 0 0 (25,000)
(8)CASH AFTER RETIREMENT (6+7) 155,383 150,896 164,655 160,151
S/T Debt (12/31/96 Bal w/o woods)
(9)Debt Borrowed 0 0 0 0
(10Debt Repaid 0 0 0 (28,591)
(11NET FINANCINGS (9+10) 0 0 0 (28,591)
(12ENDING CASH BALANCE (8+11) 155,383 150,896 164,655 131,560
(13SHORT-TERM DEBT (11 YTD) 0 0 0 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ATTACHMENT B
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
CASH FLOW STATEMENT
1997 FORECAST (WITH CONTINGENCY FOR WOODBURNERS)
<C> <C> <C> <C> <C> <C> <C> <C> <C>
JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT
(1BEGINNING CASH BALANCE 500 500 500 500 500 0 500 500 500
(2Total Cash Receipts 84,568 88,398 86,867 82,730 80,713 77,281 74,222 74,939 76,110
(3Total Cash Disbursements 51,799 50,467 53,690 58,060 71,456 72,479 47,537 48,439 57,082
(4CASH GENERATION 32,769 37,931 33,177 24,670 9,257 4,802 26,685 26,500 19,028
BEFORE CONSTRUCTION (2-3)
(5Construction Expenditures 5,264 3,113 3,113 3,113 3,113 3,113 3,113 3,113 3,113
(6CASH BEFORE RETIREMENT (1+4-5) 28,005 35,318 30,564 22,057 6,644 1,689 24,072 23,887 16,415
(7Cash Retirements-Preferred Stoc 0 0 0 0 (25,000) 0 0 0 0
(8CASH AFTER RETIREMENT (6+7) 28,005 35,318 30,564 22,057 (18,356) 1,689 24,072 23,887 16,415
S/T Debt (12/31/96 Bal w woods) 160,121
(9Debt Borrowed 0 0 0 0 18,356 0 0 0 0
(1Debt Repaid (27,505) (34,818) (30,064) (21,557) 0 (1,189) (7,092) (23,387) (15,915)
(1NET FINANCINGS (9+10) (27,505) (34,818) (30,064) (21,557) 18,356 (1,189) (7,092) (23,387) (15,915)
(1ENDING CASH BALANCE (8+11) 500 500 500 500 0 500 500 500 500
(1SHORT-TERM DEBT (11 YTD) 132,616 97,798 67,734 46,177 64,533 63,344 56,252 32,865 16,950
(1CONTINGENCY FOR FINANCING
NON-UTILITY GENERATOR
BUYOUTS (WOODBURNERS) 0 0 0 0 0 0 16,480 0 0
</TABLE>
<TABLE>
<C> <C> <C> <C>
FULL
OCT NOV DEC YEAR
(1BEGINNING CASH BALANCE 500 7,373 2,886 500
(2Total Cash Receipts 77,080 79,178 84,150 725,828
(3Total Cash Disbursements 50,144 80,552 67,278 511,009
(4CASH GENERATION 26,936 (1,374) 16,872 214,819
BEFORE CONSTRUCTION (2-3)
(5Construction Expenditures 3,113 3,113 3,113 30,168
(6CASH BEFORE RETIREMENT (1+4-5) 24,323 2,886 16,645 185,151
(7Cash Retirements-Preferred Stoc 0 0 0 (25,000)
(8CASH AFTER RETIREMENT (6+7) 24,323 2,886 16,645 160,151
S/T Debt (12/31/96 Bal w woods)
(9Debt Borrowed 0 0 0 18,356
(1Debt Repaid (16,950) 0 0 (161,527)
(1NET FINANCINGS (9+10) (16,950) 0 0 (143,171)
(1ENDING CASH BALANCE (8+11) 7,373 2,886 16,645 16,645
(1SHORT-TERM DEBT (11 YTD) 0 0 0 0
(1CONTINGENCY FOR FINANCING
NON-UTILITY GENERATOR
BUYOUTS (WOODBURNERS) 0 0 0 16,480
</TABLE>
<PAGE>
ATTACHMENT C
PSNH REVOLVING CREDIT AGREEMENT
Preliminary Terms and Conditions
February 1996
BORROWER Public Service Company of New Hampshire (the "Obligor"), a public
utility and corporation duly organized and validly existing under
the laws of the State of New Hampshire.
PROPOSED FACILITY $125 million 3 year secured revolving credit facility
$100 million 364-day secured revolving credit
facility
MATURITY OF Borrowings under the agreement are short-term with a maximum
BORROWINGS maturity of 270 days. Subject to satisfaction of certain
conditions, PSNH may reborrow for successive periods
through the termination date.
PURPOSE Borrowings under the Revolving Credit Agreement will be used
support the repayment at maturity of $172.5 million First
Mortgage Bonds which will mature on May 15, 1996, and meet
the requirements of potential future wood-fired small power
producer buyouts, and fund routine working capital
requirements,
LEAD MANAGER/ Chemical Securities Inc.
ARRANGER
ADMINISTRATIVE Chemical Bank
AGENT
CO-AGENTS The current facility lists Bankers Trust Company, Chemical
Bank, and Citibank, N.A. as co-agents. The new facility
will have no co-agents, but rather co-managers who will
support the facility through a larger lending commitment and
thus receive a greater up front fee. The co-managers are to
be determined in consultation with the Obligor.
CLOSING DATE The Obligor is targeting a Closing Date no later than
of April 30, 1996.
SECURITY Second Mortgage lien on physical and other assets of the
Obligor as consistent with the current Collateral Agency
Agreement among Bankers Trust Company as collateral agent
and Chemical Bank as revolving agent.
COLLATERAL Chemical Bank shall be substituted as the collateral agent
AGENT in place of the current agent, Bankers Trust Company.
NON-FINANCIAL As consistent with Article 7.01, Affirmative Covenants and
COVENANTS Article 7.02, Negative Covenants in the Public Service
Company of New Hampshire's Second Series D Letter of Credit
and Reimbursement Agreement dated May 1, 1995.
FINANCIAL Leverage Test
COVENANTS
The Facilities will require the Obligor to maintain a
ratio of Common Equity to Total Capitalization as
follows :
Closing Date through and 0.285 : 1.00
including 6/30/97
7/1/97 through and 0.300 : 1.00
including the Termination Date
INTEREST COVERAGE RATIO
The Facilities will require the Obligor to maintain a ratio of Operating
Income to Interest Expense as follows :
Closing Date through and 1.75 : 1.00
including 6/30/97
7/1/97 through and 2.00 : 1.00
including the Termination Date
BORROWING As consistent with the current facility. Advances will bear
OPTIONS interest at the following borrowing options :
(i) EURODOLLAR RATE ADVANCES - advances will be made equal to
the average of the co-agents' London Interbank Offered Rates
plus a margin based on the pricing grid below. Ratings will be
based on the lower of S&P and Moody's Secured Debt Rating on the
Obligors outstanding First Mortgage Bonds. Borrowings under the
Eurodollar Rate option may have maturities of 1,2,3 or 6 months.
364 DAY FACILITY
Drawn: 80.0 BP
3 YEAR TERM FACILITY
BBB-/Baa3 BB+/Ba1 BB/Ba2 BB-/Ba3
or better or below
Drawn: 55.0 bp 75.0 bp 87.5 bp 125.0 bp
(ii) ALTERNATIVE BASE RATE ADVANCES - advances will be made
equal to the greater of Chemical Bank's prime lending rate or
the Federal Funds Rate in effect plus a margin of 50 basis points.
(iii) CD RATE ADVANCES - advances will be made equal to the
average of the co-agents' certificate of deposit rates plus a
margin of 87.5 basis points.
(iv) COMPETITIVE AUCTION FACILITY (CAF) ADVANCES - advances
will be made based on a rate bid by some or all of the
participating banks in a competitive bid procedure.
COMMITMENT Payable on the unused portion of the lenders' commitments, quarterly
FEE in arrears and on the commitment termination date. Fees
will be based on the lower of S&P and Moody's secured debt
rating on PSNH outstanding First Mortgage Bonds according to
the grid on page 13.
364 DAY FACILITY
Undrawn: 20.0 bp
3 YEAR TERM FACILITY
BBB-/Baa3 BB+/Ba1 BB/Ba2 BB-/Ba3
or better or below
Undrawn: 20.0 bp 25.0 bp 37.5 bp 50.0 bp
<PAGE>
ATTACHMENT D
REVOLVING CREDIT AGREEMENT
ESTIMATED FEES
(i) One Time Fees paid at Closing :
Upfront Fee (15.0 b.p. x $225,000,000) $ 337,500
Arrangement Fee 100,000
(ii) Annual Fees :
Administrative Fee ($10,000 x 3 yrs.) 30,000
Collateral Agent Fee ($12,500 x 3 ys.) 37,500
(iii) Quarterly Commitment or Facility Fees : **
364 Day Facility (20.0 b.p. per annum x $100,000,000) 200,000
3 Year Facility (25.0 b.p. per annum x $125,000,000 x 3 yrs.) 937,500
TOTAL FEES PAID OVER THE LIFE OF THE FACILITY $ 1,642,500
** A commitment or facility fee will be payable on the unused portion of the
Lenders' commitment. Fees will be based on the lower of S&P and Moody's
secured debt rating on PSNH outstanding First Mortgage Bonds according to
the grid in attachment C. PSNH's current bond rating is BB+/Ba1.
<PAGE>
<TABLE>
<CAPTION>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE ATTACHMENT E
BALANCE SHEET (unaudited)
As of December 31, 1995
(Thousands of Dollars)
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOKS ADJUSTMENTS TRANSACTION
ASSETS ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
UTILITY PLANT, AT ORIGINAL COST:
ELECTRIC $2,109,590 $2,109,590
OTHER 0 0
------------- ------------ ------------
TOTAL 2,109,590 2,109,590
LESS: ACCUMULATED PROVISION FOR 0
DEPRECIATION 513,244 513,244
------------- ------------ ------------
1,596,346 1,596,346
CONSTRUCTION WORK IN PROGRESS 15,975 15,975
NUCLEAR FUEL, NET 1,585 1,585
------------- ------------ ------------
TOTAL NET UTILITY PLANT : 1,613,906 1,613,906
------------- ------------ ------------
OTHER PROPERTY AND INVESTMENTS:
OTHER PROPERTY 0 0
INVESTMENTS IN REGIONAL NUCLEAR GENERATING
COMPANIES AND SUBSIDIARIES, AT EQUITY 19,300 19,300
NUCLEAR DECOMMISSIONING TRUSTS, AT MARKET 2,437 2,437
OTHER, AT COST 763 763
------------- ------------ ------------
TOTAL OTHER PROPERTY AND INVESTMENTS : 22,500 22,500
------------- ------------ ------------
CURRENT ASSETS:
CASH AND SPECIAL DEPOSITS 456 52,500 (a) 52,956
NOTES RECEIVABLE FROM AFFILIATED CO'S 19,100 19,100
RECEIVABLES,LESS PROVISION FOR UNCOLLECTED ACCTS. 91,535 91,535
ACCOUNTS RECEIVABLE FROM AFFILIATED COMPANIES 1,486 1,486
ACCRUED UTILITY REVENUES 33,984 33,984
MATERIAL AND SUPPLIES, AT AVERAGE COST 41,717 41,717
PREPAYMENTS AND OTHER 11,196 11,196
------------- ------------ ------------
TOTAL CURRENT ASSETS : 199,474 52,500 251,974
------------- ------------ ------------
DEFERRED CHARGES:
REGULARORY ASSETS 1,022,911 1,022,911
DEFERRED RECEIVABLE FROM AFFILIATED COMPANY 33,284 33,284
UNAMORTIZED DEBT EXPENSE 14,165 14,165
OTHER 3,396 3,396
------------- ------------ ------------
TOTAL DEFERRED CHARGES : 1,073,756 0 1,073,756
------------- ------------ ------------
TOTAL ASSETS : 2,909,636 $52,500 2,962,136
============= ============ ============
<PAGE>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE ATTACHMENT E
BALANCE SHEET (unaudited)
As of December 31, 1995
(Thousands of Dollars)
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOKS ADJUSTMENTS TRANSACTION
------------- ------------ ------------
CAPITALIZATION AND LIABILITIES
<S> <C> <C> <C> <C> <C>
CAPITALIZATION:
COMMON STOCK $1 $1
CAPITAL SURPLUS, PAID IN 422,385 422,385
RETAINED EARNINGS 143,039 (6,914) 136,125
------------- ------------ ------------
TOTAL COMMON STOCKHOLDER'S EQUITY : 565,425 (6,914) 558,511
CUMULATIVE PREFERRED STOCK NOT SUBJECT TO
MANDATORY REDEMPTION 0 0
CUMULATIVE PREFERRED STOCK SUBJECT TO
MANDATORY REDEMPTION 125,000 125,000
LONG-TERM DEBT 686,485 686,485
------------- ------------ ------------
TOTAL CAPITALIZATION : 1,376,910 (6,914) 1,369,996
------------- ------------ ------------
OBLIGATIONS UNDER SEABROOK POWER CONTRACT AND 0
OTHER CAPITAL LEASES 874,292 874,292
------------- ------------ ------------
CURRENT LIABILITIES:
NOTES PAYABLE TO BANKS 0 225,000 (a) 225,000
LONG-TERM DEBT - CURRENT PORTION 172,500 (172,500)(a) 0
OBLIGATIONS UNDER SEABROOK POWER CONTRACT AND
OTHER CAPITAL LEASES-CURRENT PORTION 40,996 40,996
ACCOUNTS PAYABLE 65,668 65,668
ACCRUED TAXES 798 (4,524)(c) (3,726)
ACCRUED INTEREST 9,648 11,438 (b) 21,086
ACCRUED PENSION BENEFITS 38,606 38,606
OTHER 19,077 19,077
------------- ------------ ------------
TOTAL CURRENT LIABILITIES : 347,293 59,414 406,707
------------- ------------ ------------
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME TAXES 229,057 229,057
ACCUMULATED DEFERRED INVESTMENT TAX CREDITS 5,060 5,060
DEFERRED CONTRACT OBLIGATION-YAEC 18,814 18,814
DEFERRED REVENUE FROM AFFILIATED COMPANY 33,284 33,284
OTHER 24,926 24,926
------------- ------------ ------------
TOTAL DEFERRED CREDITS : 311,141 0 311,141
------------- ------------ ------------
OPERATING RESERVES 0 0 0
------------- ------------ ------------
TOTAL CAPITALIZATION AND LIABILITIES : 2,909,636 $52,500 2,962,136
============= ============ ============
<PAGE>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
INCOME STATEMENT (unaudited) ATTACHMENT E
As of December 31, 1995
(Thousands of Dollars)
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOKS ADJUSTMENTS TRANSACTION
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES : $979,590 $0 $979,590
------------- ------------ ------------
OPERATING EXPENSES:
OPERATION -
FUEL 0 0
PURCHASED AND INTERCHANGE POWER, NET 257,008 257,008
OTHER 313,390 313,390
MAINTENANCE 42,244 42,244
DEPRECIATION 44,337 44,337
AMORTIZATION/DEFERRAL OF 0
REGULATORY ASSETS, NET 55,547 55,547
FEDERAL AND STATE INCOME TAXES 69,758 (4,524)(c) 65,234
TAXES OTHER THAN INCOME TAXES 41,786 41,786
------------- ------------ ------------
TOTAL OPERATING EXPENSES : 824,070 (4,524) 819,546
------------- ------------ ------------
OPERATING INCOME 155,520 4,524 160,044
------------- ------------ ------------
OTHER INCOME:
AFUDC-OTHER FUNDS 0 0
DEFERRED NUCLEAR PLANT RETURN - OTHER FUNDS 0 0
EQUITY IN EARNINGS OF REGIONAL NUCLEAR
GENERATING COMPANIES 1,645 1,645
OTHER, NET 3,329 3,329
INCOME TAXES - CREDIT (829) (829)
------------- ------------ ------------
OTHER INCOME, NET 4,145 0 4,145
------------- ------------ ------------
INCOME BEFORE INTEREST CHARGES 159,665 4,524 164,189
------------- ------------ ------------
INTEREST CHARGES:
INTEREST ON LONG-TERM DEBT 76,320 76,320
OTHER INTEREST 90 11,438 (b) 11,528
ALLOWANCE FOR BORROWED FUNDS USED DURING 0
CONSTRUCTION 0 0
DEFERRED NUCLEAR PLANTS RETURN - BORROWED FUNDS,
NET OF INCOME TAXES 0 0
AMORT OF DEBT DISCOUNT, PREMIUM & EXPENSE, NET 0 0
------------- ------------ ------------
INTEREST CHARGES, NET 76,410 11,438 87,848
------------- ------------ ------------
INCOME BEFORE PREFERRED DIVIDENDS $83,255 ($6,914) $76,341
PREFERRED STOCK DIVIDENDS 0 0 0
------------- ------------ ------------
EARNINGS AVAILABLE FOR COMMON STOCK $83,255 (6,914) $76,341
------------- ------------ ------------
<PAGE>
ATTACHMENT E
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
CAPITAL STRUCTURE (unaudited)
As of December 31, 1995
(Thousands of Dollars)
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOKS % ADJUSTMENT TRANSACTION %
--------------------- ------------ --------------------
<S> <C> <C> <C> <C> <C>
CAPITAL STRUCTURE :
LONG-TERM DEBT, NET $686,485 $686,485
- CURRENT PORTION 172,500 (172,500) 0
TOTAL LONG-TERM DEBT 858,985 55.44% (172,500) 686,485 50.11%
PREF. STOCK SUBJECT TO MANDATORY REDEMPTION 125,000 125,000
- CURRENT PORTION 0 0
TOTAL PREFERRED MANDATORY REDEMPTION 125,000 125,000
PREF. STOCK NOT SUBJECT TO MANDATORY REDEMP. 0 0
TOTAL PREFERRED STOCK 125,000 8.07% 0 125,000 9.12%
COMMON STOCK 1 1
CAPITAL SURPLUS 422,385 422,385
RETAINED EARNINGS 143,039 (6,914) 136,125
COMMON STOCK EQUITY 565,425 36.49% (6,914) 558,511 40.77%
------------- -------------------- --------------------
TOTAL CAPITALIZATION : $1,549,410 100% ($179,414) 1,369,996 100%
============= ==================== ============ =======
<PAGE>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE ATTACHMENT E
EXPLANATION OF PRO FORMA ADJUSTMENTS
(Thousands of Dollars)
DEBIT CREDIT
<S> <C> <C>
(a) CASH 52,500
L/T DEBT-CURRENT PORTION 172,500
NOTES PAYABLE TO BANKS 225,000
225,000 225,000
To record the additional proposed borrowing up to the entire $225 million available to the company and record
its use to pay off the PSNH Series A $172.5 million First Mortgage Bond and the balance to cash to be used
for future working capital requirements.
DEBIT CREDIT
<S> <C> <C>
(b) OTHER INTEREST EXPENSE 11,438
ACCRUED INTEREST 11,438
11,438 11,438
To record the interest expense on the additional proposed borrowing at LIBOR (90 day rate as of 1/29/96),
plus a margin of 75 basis points.
(Interest Expense on $225 million borrowing) $225,000 x 6.25%= 14,063
(Interest Income on cash) $52,500 x 5.00%= 2,625
Net Interest Expense 11,438
DEBIT CREDIT
<S> <C> <C>
(c) ACCRUED TAXES 4,524
FED. & STATE INC. TAX EXP. 4,524
4,524 4,524
To record the reduction in Federal and State income taxes due to the higher interest expenses.
Effective tax rate for PSNH is 39.55.
$11,438 x 39.55% = 4,524
</TABLE>
<PAGE>
<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to _______
Commission File Number 1-6392
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
(Exact name of registrant as specified in its charter)
NEW HAMPSHIRE 02-018150
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
1000 ELM STREET, MANCHESTER, NEW HAMPSHIRE 03105
(Address of principal executive offices) (Zip Code)
(603) 669-4000
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No ___
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Class Outstanding at October 31, 1995
Common Shares, $10.00 par value 1,000 shares
<PAGE>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
TABLE OF CONTENTS
Page No.
Part I. Financial Information
Item 1. Financial Statements
Balance Sheets - September 30, 1995 and
December 31, 1994 2
Statements of Income - Three and Nine
Months Ended September 30, 1995 and 1994 4
Statements of Cash Flows - Nine Months
Ended September 30, 1995 and 1994 5
Notes to Financial Statements 6
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 8
Part II. Other Information
Item 1. Legal Proceedings 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 13
Signatures 14
<PAGE>
PART I. FINANCIAL INFORMATION
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
ASSETS (Thousands of Dollars)
<S> <C> <C> <C>
- ------
Utility Plant, at original cost:
Electric $2,072,021 $2,038,625
Less: Accumulated provision for depreciation 503,300 474,129
1,568,721 1,564,496
Construction work in progress 27,816 17,781
Nuclear fuel, net 1,782 2,248
Total net utility plant 1,598,319 1,584,525
Other Property and Investments:
Nuclear decommissioning trusts, at market 2,286 1,815
Investments in regional nuclear generating
companies and subsidiary company, at equity 19,405 19,551
Other, at cost 638 394
22,329 21,760
Current Assets:
Cash and special deposits 610 322
Notes 105,500 35,000
Receivables, net 80,305 76,173
Accounts receivable from affiliated companies 958 3,779
Accrued utility revenues 27,554 36,547
Fuel, materials, and supplies, at average cost 44,454 37,453
Prepayments and other 20,892 20,829
280,273 210,103
Deferred Charges:
Regulatory assets:
Unamortized acquisition costs 611,426 678,974
Income taxes, net 76,412 66,466
Unrecovered contract obligation--Yankee Atomic
Electric Company 26,392 28,572
Recoverable energy costs 214,552 194,994
Other 2,428 2,499
Unamortized debt expense 15,012 17,064
Deferred receivable from affiliated company 33,284 33,284
Other 2,726 7,726
982,232 1,029,579
Total Assets $2,883,153 $2,845,967
</TABLE>
See accompanying notes to financial statements.
<PAGE>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
CAPITALIZATION AND LIABILITIES (Thousands of Dollars)
<S> <C> <C> <C>
- ------------------------------
Capitalization:
Common stock--$1 par value.
Authorized and outstanding 1,000 shares $1 $1
Capital surplus, paid in 422,231 421,784
Retained earnings 148,006 125,034
570,238 546,819
Total common stockholder's equity
Preferred stock subject to mandatory redemption 125,000 125,000
Long-term debt 686,485 905,985
Total capitalization 1,381,723 1,577,804
Obligations Under Seabrook Power Contract
and Other Capital Leases 856,401 849,776
Current Liabilities:
Long-tem debt-current portion 243,000 94,000
Obligations under capital leases-current
portion 43,448 38,191
Accounts payable 34,456 45,984
Accounts payable to affiliated companies 15,878 17,309
Accrued taxes 19,578 4,304
Accrued interest 23,686 10,496
Accrued pension benefits 38,022 36,269
Other 28,727 20,350
446,795 266,903
Deferred Credits:
Accumulated deferred income taxes 107,296 62,080
Accumulated deferred investment tax credits 5,198 5,614
Deferred contract obligation--Yankee Atomic
Electric Company 26,392 28,572
Deferred revenue from affiliated company 33,284 33,284
Other 26,064 21,934
198,234 151,484
Commitments and Contingencies (Note 3)
Total Capitalization and Liabilities $2,883,153 $2,845,967
</TABLE>
See accompanying notes to financial statements.
<PAGE>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
(Thousand of Dollars)
<S> <C> <C> <C> <C>
Operating Revenues $249,626 $227,976 $734,812 $688,130
Operating Expenses:
Operation --
Fuel, purchased and net interchange power. 64,613 53,090 202,922 162,655
Other 80,737 76,149 226,269 228,081
Maintenance 8,722 10,640 29,595 34,549
Depreciation 11,837 9,820 32,883 28,992
Amortization of regulatory assets, net 13,212 13,176 41,323 41,503
Federal and state income taxes 20,470 16,507 57,291 48,045
Taxes other than income taxes 10,380 9,881 31,536 29,763
Total operating expenses 209,971 189,263 621,819 573,588
Operating Income 39,655 38,713 112,993 114,542
Other Income:
Equity in earnings of regional nuclear
generating companies and subsidiary company 453 399 1,228 1,127
Other, net 1,664 (907) 1,711 125
Income taxes--credit 416 635 1,158 (1,137)
Other income, net 2,533 127 4,097 115
Income before interest charges 42,188 38,840 117,090 114,657
Interest Charges:
Interest on long-term debt 18,994 19,474 58,367 56,783
Other interest (1) 104 (187) 333
Interest charges, net 18,993 19,578 58,180 57,116
Net Income $23,195 $19,262 $58,910 $57,541
</TABLE>
See accompanying notes to financial statement.
<PAGE>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
1995 1994
(Thousand of Dollars)
<S> <C> <C>
Operating Activities:
Net Income $58,910 $57,541
Adjustments to reconcile to net cash
from operating activities:
Depreciation 32,883 28,992
Deferred income taxes and investment tax credits, net 52,946 48,707
Recoverable energy costs, net of amortization (903) (39,333)
Amortization of acquisition costs 41,323 41,503
Other sources of cash 20,229 2,662
Other uses of cash - (7,457)
Changes in working capital:
Receivables and accrued utility revenues 7,682 10,275
Fuel, materials, and supplies (7,001) (1,176)
Accounts payable (12,959) (5,763)
Accrued taxes 15,274 18,898
Other working capital (excludes cash) 4,602 6,111
Net cash flows from operating activities 212,986 160,960
Financing Activities:
Net decrease in short-term debt - (2,500)
Reacquisitions and retirements of long-term debt (70,500) (70,500)
Cash dividends on prefered stock (9,938) (9,937)
Cash dividends on common stock (26,000) -
Net cash flows used for financing activities (106,438) (82,937)
Investment Activities:
Investment in plant:
Electric utility plant (35,113) (21,252)
Nuclear fuel 186) (362)
Net cash flows used for investments in plant (35,299) (21,614)
NU System Money Pool (70,500) (61,750)
Other investment activities, net (461) (87)
Net cash flows used for investments (106,260) (83,451)
Net Increase (Decrease) in Cash For The Period 288 (5,428)
Cash and special deposits - beginning of period 322 5,995
Cash and special deposits - end of period $610 $567
</TABLE>
See accompanying notes to financial statement.
<PAGE>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. General
The accompanying unaudited financial statements should be read in conjunction
with the Annual Report of Public Service Company of New Hampshire (the company
or PSNH), a wholly owned subsidiary of Northeast Utilities (NU), on Form 10-K
for the year ended December 31, 1994 (1994 Form 10-K). In the opinion of the
company, the accompanying financial statements contain all adjustments
necessary to present fairly the financial position as of September 30, 1995,
the results of operations for the three and nine months ended September 30,
1995 and 1994, and the statements of cash flows for the nine months ended
September 30, 1995 and 1994. The results of operations for the three and nine
months ended September 30, 1995 and 1994 are not necessarily indicative of the
results expected for a full year.
Certain reclassifications of prior period data have been made to conform with
the current period presentation.
2. Accounting for Long-Lived Assets
The company's accounting policies and the accompanying financial statements
conform to generally accepted accounting principles applicable to
rate-regulated enterprises and reflect the effects of the ratemaking process in
accordance with Statement of Financial Accounting Standards No. 71, "Accounting
for Certain Types of Regulation" (SFAS 71). If any portion of the company's
operations was no longer subject to the provisions of SFAS 71, as a result of a
change in the cost-of-service based regulatory structure or the effects of
competition, the company would be required to write off related regulatory
assets and liabilities. The company would also be required to determine any
impairment to other assets and write down these assets to their fair value.
Statement of Financial Accounting Standards No. 121, "Accounting for
the Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Of"
(SFAS 121), issued in March 1995 and effective January 1, 1996, establishes
accounting standards for the impairment of long-lived assets. SFAS 121
requires that regulatory assets that are no longer probable of recovery through
future revenues be charged to earnings. Based upon the current regulatory
environment in the company's operating service area, it is not expected that
the adoption of SFAS 121 would have a material impact on the company's
financial position or results of operations. This conclusion may change in the
future as competitive factors influence wholesale and retail pricing in the
electric utility industry, or if the cost-of-service based regulatory
structure were to change.
3. Commitments and Contingencies
Construction Program: For information regarding PSNH's construction
program, see the Notes to Financial Statements in PSNH's 1994 Form 10-K.
PSNH Rate Agreement: For information regarding the PSNH rate agreement, see
the Notes to Financial Statements in PSNH's June 30, 1995 Form 10-Q and 1994
Form 10-K.
Environmental Matters: For information regarding environmental matters, see
the Notes to Financial Statements in PSNH's March 31, 1995 Form 10-Q and 1994
Form 10-K.
Nuclear Insurance Contingencies: For information regarding nuclear insurance
contingencies, see the Notes to Financial Statements in PSNH's 1994 Form 10-K.
Purchased Power Arrangements: For information regarding purchased power
arrangements, see the Notes to Financial Statements in PSNH'S 1994 Form 10-K.
Hydro-Quebec: For information regarding Hydro-Quebec, see the Notes to
Financial Statements in PSNH's 1994 Form 10-K.
<PAGE>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
Management's Discussion and Analysis of Financial
Condition and Results of Operations
This section contains management's assessment of PSNH's (the company)
financial condition and the principal factors having an impact on the
results of operations. The company is a wholly-owned subsidiary of Northeast
Utilities (NU). This discussion should be read in conjunction with the
company's financial statements, footnotes, and Part II, Other Information, of
this report and Management's Discussion and Analysis in the 1994 Form 10-K and
the First and Second Quarter 1995 Form 10-Qs.
FINANCIAL CONDITION
Overview
Net income increased to approximately $23 million for the three months
ended September 30, 1995 from approximately $19 million for the same
period in 1994. Net income increased to approximately $59 million for
the nine months ended September 30, 1995 from approximately $58 million
for the same period in 1994. Net Income for the three-month period increased
primarily due to higher revenues from regulatory decisions and higher retail
kilowatt-hour sales. Retail kilowatt-hour sales for the quarter were up 1.9
percent from 1994 as a result of hotter summer weather.
Workforce Reductions
In July 1995, NU announced a program aimed at reducing the nuclear
organization's total workforce by approximately 250 employees. The NU
system-wide estimated pre-tax cost of the early retirement that was charged to
expense in the third quarter was approximately $7 million. This estimate was
based on 121 eligible employees accepting the early retirement. The balance of
the workforce reduction will be achieved through attrition and layoffs. The
estimated cost of the early retirements and layoffs to the NU system could be
in the range of $2 million to $3 million.
Regulatory Matters
On September 15, 1995, PSNH filed with the New Hampshire Public Utilities
Commission (NHPUC) a request for a reduced Fuel and Purchased Power Adjustment
Clause (FPPAC) rate to take effect on December 1, 1995 and continue through May
31, 1996. If approved, the effective rate would reduce PSNH's overall rate
level by about one percent. A final decision is expected by the end of
November.
The costs associated with purchases by PSNH from certain nonutility generators
(NUGs) over the level assumed in rates are deferred and recovered over ten-year
periods through the FPPAC. At September 30, 1995, the unrecovered deferrals
were approximately $189 million. PSNH has reached tentative agreements with
the six remaining wood-fired NUGs. These agreements call for substantial
upfront and continuing payments, and are subject to the approval of the NHPUC.
If the NHPUC's proposal for a retail wheeling pilot is not revised to provide
for full recovery of stranded investments, management will need to reevaluate
whether to proceed with the NUG buy-out agreements.
Nuclear Performance
The Seabrook nuclear power plant operated at a capacity factor of 92.8
percent for the nine months ended September 30, 1995, as compared to
48.5 percent for the same period in 1994. The lower 1994 capacity factor was
primarily the result of a 23-day shutdown for an unplanned outage that began in
January and a 114-day refueling and maintenance outage that began in April.
Seabrook began a 50-day refueling and maintenance outage in November 1995.
Liquidity And Capital Resources
Cash provided from operations increased approximately $52 million for
the first nine months of 1995, as compared with the same period in 1994,
primarily due to higher fuel recoveries. Cash flows used for financing
activities increased approximately $24 million in 1995 primarily due to the
payment of common stock dividends in 1995. Cash used for investments increased
approximately $23 million for the first nine months of 1995 primarily due to an
increase in construction expenditures in 1995 and higher investment in the NU
system money pool.
PSNH's construction program expenditures amounted to approximately $35
million for the first nine months of 1995, as compared to approximately
$21 million for the same period in 1994. The increase is primarily due
to the costs associated with the installation of the pollution control
system at Merrimack Station.
On October 18, 1995, Moody's Investors Service lowered its ratings of
PSNH and North Atlantic Energy Corporation (NAEC) securities, bringing the
rating for PSNH's First Mortgage Bonds below investment grade. Standard and
Poor's had previously downgraded PSNH and NAEC securities below investment
grade. With both of the major nationally recognized securities rating
organizations that rate PSNH and NAEC securities rating them below investment
grade, PSNH's and NAEC's borrowing costs have been adversely affected and the
future availability and cost of funds for those companies could be adversely
affected.
<PAGE>
Results of Operations
Comparison of the Third Quarter 1995 with the Third Quarter of 1994
- -------------------------------------------------------------------
The components of the change in operating revenues are as follows:
<TABLE>
<CAPTION>
Changes in Operating Revenues Increase/Decrease
(Millions of Dollars)
<S> <C>
Regulatory decisions $ 5
Fuel, purchased power, and 17
FPPAC cost recoveries
Retail Sales Volume 2
Other (2)
Total revenue change $ 22
</TABLE>
Revenues related to regulatory decisions increased primarily because of
the June 1995 retail rate increase. Fuel, purchased power, and FPPAC
cost recoveries increased primarily due to an increase in base fuel recoveries
and higher sales to other utilities. Retail kilowatt-hour sales increased 1.9
percent for the quarter from 1994 levels as a result of hotter summer weather.
Fuel, purchased and net interchange power expense increased approximately $12
million in the third quarter of 1995 primarily due to the timing in the
recognition of fuel expenses under the FPPAC.
Other operation and maintenance expense increased approximately $3 million in
the third quarter of 1995 primarily due to the higher costs under the Seabrook
Power Contract.
Federal and state income taxes increased approximately $4 million in
the third quarter of 1995 primarily due to higher book taxable income.
<PAGE>
Comparison of the First Nine Months of 1995 with the First Nine Months
- ----------------------------------------------------------------------
of 1994
- -------
The components of the change in operating revenues are as follows:
<TABLE>
<CAPTION>
Increase/Decrease
Changes in Operating Revenues (Millions of Dollars)
<S> <C>
Regulatory decisions $ 15
Fuel, purchased power, and 42
FPPAC cost recoveries
Retail Sales Volume (3)
Wholesale revenues (4)
Other (3)
Total revenue change $ 47
</TABLE>
Revenues related to regulatory decisions increased primarily because of
the June 1994 and 1995 retail rate increases. Fuel, purchased power,
and FPPAC cost recoveries increased primarily due to higher sales to
other utilities and higher base fuel recoveries.
Fuel, purchased and net interchange power expense increased approximately $40
million in the first nine months of 1995 primarily due to the timing in the
recognition of fuel expenses under the FPPAC.
Other operation and maintenance expenses decreased approximately $7 million in
the first nine months of 1995 primarily due to lower capacity charges under the
Seabrook Power Contract and lower storm costs in 1995.
Federal and state income taxes increased approximately $11 million in
the first nine months of 1995 primarily due to higher book taxable income and
lower tax benefits associated with the Seabrook intercompany loss.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
1. On or about November 1, 1995, the New Hampshire Office of Consumer
Advocate (OCA) and the Campaign for Ratepayers Rights filed suit in Superior
Court against the NHPUC seeking a declaratory ruling that special contracts
entered into by and between PSNH and certain retail customers are prohibited by
the 1989 rate agreement between PSNH and the State of New Hampshire (Rate
Agreement). The petition is based on an alleged inconsistency between the New
Hampshire statute that allows special contracts agreed to by a utility and a
customer when deemed appropriate by the NHPUC and the legislation accepting the
Rate Agreement wherein PSNH received protection against NHPUC actions fixing
rates other than in the manner agreed upon in the Rate Agreement. The
court petition alleges that the special contracts also constitute a breach of
the Rate Agreement by PSNH, thereby stopping PSNH from claiming benefits under
the Rate Agreement. The New Hampshire Attorney General will represent the
NHPUC in this action. While PSNH believes this proceeding should be dismissed
on procedural grounds, it cannot predict the outcome of this proceeding or its
ultimate effect on PSNH or NAEC at this time.
Item 5. Other Information
1. On October 9, 1995, the NHPUC issued preliminary guidelines for an
Electric Retail Competition Pilot Program (Program). The Program is
proposed to be a three-year retail wheeling experiment under which a
randomly selected group of retail users will be free to purchase up to
60 MW of power from other suppliers besides their franchised local utility, of
which 44 MW of the prospective loss is allocated to PSNH. This amount of power
equals three percent of PSNH's peak load. If the program were implemented as
proposed, participants would be responsible for arranging their own electricity
supply and would be free to negotiate the terms for such supply with any
potential supplier. Under the proposed guidelines, utilities would not be
allowed to charge exit or re-entry fees to customers who go off and on their
systems, but recovery of stranded costs resulting from the Program would be
split equally between utility investors and participating customers.
Finalization of the guidelines is expected in December 1995, subject to
further comments and hearings.
For additional information on this matter, see "Other Information" in
PSNH's 1995 Form 10-Q for the quarter ended June 30, 1995.
2. On September 1, 1995, PSNH filed a petition with the New Hampshire
Supreme Court, which was accepted on November 2, 1995, appealing the
NHPUC's decision in the proceeding involving Freedom Electric Power Company,
now known as Freedom Energy Company, LLC (Freedom), that PSNH's franchise was
not exclusive as a matter of law.
For additional information on this matter, see "Other Information" in
PSNH's 1995 Form 10-Q for the quarter ended June 30, 1995.
3. New Hampshire's Limited Electrical Energy Producers Act (LEEPA)
purportedly allows a qualifying generator of not greater than 5 MW capacity to
sell its output to up to three retail customers. LEEPA also provides that the
local franchised utility could be ordered to wheel the energy to these retail
customers. On October 3, 1995, the NHPUC issued an order stating that the
LEEPA retail wheeling provision was not pre-empted by federal law and that it
had authority to order such retail wheeling service if it was found to be in
the public good. PSNH and Connecticut Valley Electric Company filed motions
for rehearing of this order with the NHPUC on November 2, 1995.
4. On October 4, 1995, the U.S. Court of Appeals for the District of
Columbia Circuit granted a motion to intervene filed by Northeast Utilities
Service Company, Connecticut Yankee Atomic Power Company and North Atlantic
Energy Service Company as party petitioners in the lawsuit brought by other
nuclear utilities seeking a judicial declaration that the Nuclear Waste Policy
Act of 1982, as amended, unconditionally binds the U.S. Department of Energy to
begin acceptance of spent nuclear fuel and high-level radioactive waste
beginning on January 31, 1998.
For additional information on this matter, see "Item 1. Business - Electric
Operations - Nuclear Generation - High-Level Radioactive Waste" in PSNH's 1994
Form 10-K.
5. On October 12, 1995, the NRC issued an order halting major dismantling or
decommissioning activities at the Yankee Rowe Nuclear Plant (Yankee Rowe) until
after completion of an adjudicatory hearing process. The NRC intends to issue
a Notice of Opportunity for a hearing on the NRC staff-approved Yankee Rowe
decommissioning plan and, if a hearing is requested, order an expedited
hearing. The NRC's action was taken in response to a recent federal appeals
court decision finding that the NRC should have offered a hearing opportunity
prior to authorizing Yankee's Component Removal Program in 1993.
For additional information on this matter, see "Other Information" in
PSNH's 1995 Form 10-Q for the quarter ended June 30, 1995.
Item 6. Exhibits and Reports on Form 8-K
(a) Listing of Exhibits:
Exhibit
Number Description
27 Financial Data Schedule
(b) Reports on Form 8-K:
No reports on Form 8-K have been filed during this reporting
period.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
---------------------------------------
Registrant
Date November 13, 1995 By /s/ Bernard M. Fox
Bernard M. Fox
Chairman, Chief Executive
Officer, and Director
Date November 13, 1995 By /s/ John W. Noyes
John W. Noyes
Vice President and
Controller
<PAGE>
March 18, 1996
Sarah P. Voll, Ph.D.
Executive Director and Secretary
New Hampshire Public Utilities Commission
Eight Old Suncook Road, Building One
Concord, NH 03301-7319
Re: Petition for Waiver of Short Term Debt Limit of Puc.
312.01 and for Approval to Mortgage Property Pursuant
to R.S.A. 369:2 to Secure Short Term Debt Docket No. DF-048
Dear Dr. Voll:
Public Service Company of New Hampshire ("PSNH") hereby submits for
filing an original and eight copies of PSNH's proposed draft forms of a $125
Million Three-Year Amended and Restated Revolving Credit Agreement (the "$125
Million Credit Agreement") and a $100 Million 364-Day Revolving Credit
Agreement (the "$100 Million Credit Agreement"; together with the $125 Million
Revolving Credit Agreement, the "Agreements") which, taken together, constitute
the revolving credit agreement which is proposed to be amended and restated
in this docket. While the original Petition in this docket contemplated one
amended and restated revolving credit agreement, PSNH was able to negotiate
more favorable financing terms by agreeing to document the 364-day, $100
million principal amount portion of the $225 million credit facility in a
second, closely-related agreement. The banks are able to offer PSNH better
pricing on the $100 million portion of the facility as less capital needs to be
committed under bank capital regulations when the 364-day portion is separately
documented. Functionally, however, the two agreements are closely linked and
differ materially only in term and principal amount.
The enclosed draft credit agreements contain several modifications to
the terms and conditions set forth in the petition. PSNH's Petition sought
authority to borrow up to $125 million for a three-year term; Section 2.04 of
the enclosed draft of the $125 Million Credit Agreement provides for successive
one- year extensions upon the request of PSNH and with the consent of the
banks. In the event that PSNH determines that it is desirable to seek to so
extend the term of the $125 Million Credit Agreement, PSNH will submit a
petition to the Commission requesting such authority prior to the termination
of the original three-year term. Although there is no similar extension
provision in the $100 Million Credit Agreement, it is possible that PSNH
may similarly seek authority from the Commission to extend the term of that
portion of the revolving credit facility, subject to future financial analysis
and negotiations with the lenders.
The Petition provides in Attachments C and D that a commitment fee will
be payable to the lenders based only on the unused portion of each lender's
commitment; however, this fee will actually be based on each lender's aggregate
commitment, whether used or unused, as reflected in Section 2.02 of the
agreements. (This adjustment does not alter the calculation of estimated
fees presented in Attachment D, however.) Moreover, the certificate of deposit
interest rate option has been eliminated. Lastly, subject to further
negotiation, the Agreements may also provide (as does the existing credit
agreement) that a default, termination or modification of the Rate Agreement
among Northeast Utilities Service Company, the Governor and Attorney General
of the State of New Hampshire adopted by PSNH as of July 10, 1990, as amended,
would constitute an event of default.
If you have any questions or require any additional information
regarding this filing, please do not hesitate to contact me or Catherine
Shively (603-634-2326). Thank you for your expeditious handling of this
matter.
Very truly yours,
Jane P. Seidl
Senior Counsel
Northeast Utilities Service
Company
P.O. Box 270
Hartford, CT 06141-0270
(860-665-5051)
Enclosures
cc: Service List
<PAGE>
EXHIBIT D.4
DF 96-048
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
PETITION FOR WAIVER OF SHORT TERM DEBT LIMIT OF PUC. 312.01
AND FOR APPROVAL TO MORTGAGE PROPERTY PURSUANT TO RSA 369:2
TO SECURE SHORT TERM DEBT
ORDER NISI GRANTING PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
WAIVER OF SHORT TERM DEBT LIMIT OF PUC. 312.01 AND
FOR APPROVAL TO MORTGAGE PROPERTY PURSUANT TO
RSA 396:2 TO SECURE SHORT TERM DEBT
O R D E R N O. 22,030
February 28, 1996
On February 14, 1996 Public Service Company of New Hampshire (PSNH or
the Company) filed with the New Hampshire Public Utilities Commission (the
"Commission" or "NHPUC") requesting an order from this Commission pursuant to
RSA 369:7, waving Puc. 312.01 pursuant to Puc. 201.05, authorizing a short-term
debt limit of $225 million, which is in excess of ten percent (10%) of net
assets less depreciation. PSNH also is requesting authorization pursuant to
RSA 369:2 to continue the second PSNH Mortgage as security for short-term debt
pursuant to the terms and conditions of the proposed Amended and Restated
Revolving Credit Agreement. These approvals are requested in connection with
the amendment, restatement and extension of PSNH's existing $125 million
Revolving Credit Agreement dated as of May 1, 1991, as amended ("Revolving
Credit Agreement"; as amended and restated, the "Amended and Restated Revolving
Credit Agreement") and associated second mortgage.
The Commission approved the extension of the Revolving Credit Agreement
from May 14, 1994 to May 14, 1996 in Docket No. DF 94-039, Order No. 21,180
(1994).
PSNH Proposes to amend, restate and extend the Revolving Credit
Agreement to:
(i) convert the borrowing under the Revolving Credit
Agreement from long-term to short-term by amending the maturity of any
borrowing under the agreement such that the borrowing cannot exceed 270 days,
(ii) extend the maturity of the existing $125 million
Revolving Credit Agreement for three years, until May 14, 1999,
(iii) increase the aggregate principal amount available to
PSNH from $125 million to $225 million for a one year period by adding to the
three year $125 million Revolving Credit Agreement an additional $100 million
364-day revolving credit facility, which will expire on May 14, 1997, and
(iv) continue the existing Collateral Agency Agreement and
PSNH Mortgage as security for short-term borrowing under the Amended and
Restated Revolving Credit Agreement.
The Company's proposed $225 million secured short-term facility
has been designed to provide flexibility to:
(i) retire the $172.5 million Series A First Mortgage
Bonds which will mature on May 15, 1996,
(ii) meet the requirements of renegotiated wood-fired
small power producer rate orders, and
(iii) fund normal working capital requirements.
The $125 million three year and $100 million one year structure of the
facility has been designed to meet the financing requirements of the Company
during this period.
PSNH states that it is currently engaged in negotiations with certain
banks with respect to the terms and conditions of the Amended and Restated
Revolving Credit Agreement. The covenants are not expected to be materially
different than those included in the current Revolving Credit Agreement and
will be compatible with those currently in effect. Additional information,
attached to the petition as Attachment C, to Mr. McHale's testimony provides
information regarding the terms, conditions and covenants anticipated in the
Amended and Restated Revolving Credit Agreement. The Company states that the
final form of the Amended and Restated Revolving Credit Agreement will be filed
with the Commission when it is available. The current Collateral Agency
Agreement and the PSNH Mortgage will remain in place without significant
amendment or modification, except that Chemical Bank will be substituted as the
Collateral Agent in place of the current agent, Banker's Trust Company.
Pursuant to RSA 369:7, PSNH is requesting an order from this Commission
waiving Puc. 312.01, pursuant to Puc. 201.05, authorizing a short-term debt
limit of $225 million, which is approximately $25 million in excess of ten
percent (10%) of PSNH's net assets. Under Puc. 201.05, the Commission may
waive the requirements of Puc. 312.01 if it finds that the waiver is
in the public interest and that existing peculiarities or unusual circumstance
warrant a departure from the rule. PSNH states that this waiver of the
requirement is in the public interest since it is for a one year period only
and the resulting increase in short-term debt will permit PSNH to utilize the
most economic alternative for:
(i) meeting the maturity of the $172.50 million Series A First
Mortgage Bonds,
(ii) meeting the requirement of renegotiated wood-fired small power
producer rate orders, and
(iii) funding normal working capital requirements.
Finally, PSNH also seeks authorization pursuant to RSA 369:2 to
continue the existing PSNH Mortgage and associated Collateral Agency Agreement
as security for short-term debt pursuant to the terms and conditions of the
proposed Amended and Restated Revolving Credit Agreement.
Pursuant to RSA 369:3, estimated expenses of the proposed Amended and
Restated Revolving Credit Facility are set forth in Attachment D.
COMMISSION ANALYSIS
We have reviewed the petition and supporting testimony or Mr. McHale.
As explained by Mr. McHale, PSNH must request a waiver of the 10% Short-Term
Debt limit as shown in Attachment A to his testimony. PSNH does not have net
assets which would allow it to stay under the 10% short term debt ceiling. As
shown on Attachment A of the filing the Company has net Assets of
$1,999,798,872 as of December 31, 1995 which would allow for a short term
debt ceiling of $199,879,887.
We find that the use of this financing will provide the flexibility to
refinance PSNH's 87/8 First Mortgage Bonds with a lower interest rate debt
instrument, with the purported ability to repay the borrowing under the
refinancing of the bonds with internally generated cash by approximately
February of 1997.
The funding of the renegotiated wood-fired small power producer rate
orders with this financing as either a bridge financing until long term debt
can favorably be arranged or by repaying the financing for the renegotiated
rate orders from internally generated cash by late 1997, as shown in Attachment
B to Mr. McHale's testimony, is in the public good.
BASED UPON THE FOREGOING, IT IS HEREBY
ORDERED, that the Commission pursuant to RSA 369:7, waives Puc. 312.01,
pursuant to Puc. 201.05; and it is
FURTHER ORDERED, that the short-term debt limit for PSNH of $225
million shall be in effect for the period May 14, 1996 to May 14, 1997; and it
is
FURTHER ORDERED, that the Revolving Credit Agreement in the amount of
$125 Million is extended from May 14, 1996 to May 14, 1999; and it is
FURTHER ORDERED, that the Commission finds waiving of Puc. 312.01 is in
the public interest since the resulting increase in short-term debt permits
PSNH to utilize the most economic alternative to (i) meet the maturity of the
$172.5 million Series A First Mortgage Bonds, (ii) meet the requirements of
renegotiated wood-fired small power producer rate orders, and (iii) fund normal
working capital requirements; and it is
FURTHER ORDERED, that PSNH may continue it's existing Collateral Agency
Agreement and Second PSNH Mortgage granted by PSNH on substantially all of its
present and future New Hampshire property, to secure payment of short-term debt
under the terms and conditions of the proposed Amended and Restated Revolving
Credit Agreement; and it is
FURTHER ORDERED, that on January 1 and July 1 of each year, the Company
shall file with this Commission a detailed statement, duly sworn by its
Treasurer, showing the disposition of the proceeds of said securities, until
the entire proceeds shall have been fully accounted for; and it is
FURTHER ORDERED, that pursuant to N.H. Admin. Rules, Puc. 1601.05, the
Petitioner shall cause a copy of this Order Nisi to be published once in a
newspaper of general circulation in the area it serves, such publication to be
no later than March 6, 1996 and to be documented by affidavit filed with this
office on or before March 13, 1996; and it is
FURTHER ORDERED, that all persons interested in responding to this
petition be notified that they may submit their comments or file a written
request for a hearing on this matter before the Commission no later than March
13, 1996; and it is
FURTHER ORDERED, that any party interested in responding to such
comments or request for hearing shall do so no later than March 20, 1996; and
it is
FURTHER ORDERED, that this Order Nisi shall be effective March 27,
1996, unless the Commission provides otherwise in a supplemental order issued
prior to the effective date.
By order of the Public Utilities Commission of New Hampshire this
twenty-eighth day of February, 1996.
____________________ ____________________ ____________________
Douglas L. Patch Bruce B. Ellsworth Susan S. Geiger
Chairman Commissioner Commissioner
Attested by:
_____________________________
Claire D. DiCicco
Assistant Secretary
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT G
CONNECTICUT LIGHT AND POWER COMPANY
FINANCIAL DATA SCHEDULE
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
PRO FORMA
GIVING EFFECT
ITEM TO PROPOSED
# DESCRIPTION PER BOOK TRANSACTION
<S> <C> <C> <C>
1 Total Net Utility Plant 3,929,136 3,929,136
2 Other Property and Investments 317,614 317,614
3 Total Current Assets 504,753 879,753
4 Total Deferred Charges 1,182,489 1,182,489
5 Balancing amount for Total Assets 0 0
6 Total Assets 5,933,992 6,308,992
7 Common Stock 122,229 122,229
8 Capital Surplus, Paid In 638,401 638,401
9 Retained Earnings 754,263 741,188
10 Total Common Stockholders Equity 1,514,893 1,501,818
11 Preferred Stock Subject to Mandatory Rede 155,000 155,000
12 Preferred Stock Not Subject to Mandatory 116,200 116,200
13 Long Term Debt, Net 1,814,832 1,814,832
14 Short Term Notes 0 375,000
15 Notes Payable 0 0
16 Commercial Paper 0 0
17 Long Term Debt-Current Portion 9,372 9,372
18 Preferred Stock-Current Portion 0 0
19 Obligations Under Capital Leases 101,736 101,736
20 Obligations Under Capital Leases-Current 60,011 60,011
21 Balancing amount of Capitalization and Li 2,161,948 2,175,023
22 Total Capitalization and Liabilities 5,933,992 6,308,992
23 Gross Operating Revenue 2,445,229 2,445,229
24 Federal and State Income Taxes Expense 164,551 155,088
25 Other Operating Expenses 1,992,867 1,992,867
26 Total Operating Expenses 2,157,418 2,147,955
27 Operating Income (Loss) 287,811 297,274
28 Other Income (Loss), Net 11,272 11,272
29 Income Before Interest Charges 299,083 308,546
30 Total Interest Charges 126,892 149,430
31 Net Income 172,191 159,116
32 Preferred Stock Dividends 15,559 15,559
33 Earnings Available For Common Stock 156,632 143,557
34 Common Stock Dividends 184,566 184,566
35 Total Annual Interest Charges on All Bond 123,186 123,186
36 Cash Flow From Operations 0 0
37 Earnings Per Share-Primary 0.00 0.00
38 Earnings Per Share-Fully Diluted 0.00 0.00
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT G
HOLYOKE WATER POWER COMPANY
FINANCIAL DATA SCHEDULE
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
PRO FORMA
GIVING EFFECT
ITEM TO PROPOSED
# DESCRIPTION PER BOOK TRANSACTION
<S> <C> <C> <C>
FINANCIAL DATA SCHEDULE
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
GIVING EFFECT
ITEM TO PROPOSED
# DESCRIPTION PER BOOK TRANSACTION
<S> <C> <C> <C>
1 Total Net Utility Plant 56,985 56,985
2 Other Property and Investments 3,357 3,357
3 Total Current Assets 19,736 24,736
4 Total Deferred Charges 3,800 3,800
5 Balancing amount for Total Assets 0 0
6 Total Assets 83,878 88,878
7 Common Stock 2,400 2,400
8 Capital Surplus, Paid In 6,000 6,000
9 Retained Earnings 12,869 12,692
10 Total Common Stockholders Equity 21,269 21,092
11 Preferred Stock Subject to Mandatory Rede 0 0
12 Preferred Stock Not Subject to Mandatory 0 0
13 Long Term Debt, Net 38,300 38,300
14 Short Term Notes 0 5,000
15 Notes Payable 0 0
16 Commercial Paper 0 0
17 Long Term Debt-Current Portion 0 0
18 Preferred Stock-Current Portion 0 0
19 Obligations Under Capital Leases 0 0
20 Obligations Under Capital Leases-Current 0 0
21 Balancing amount of Capitalization and Li 24,309 24,486
22 Total Capitalization and Liabilities 83,878 88,878
23 Gross Operating Revenue 34,031 34,031
24 Federal and State Income Taxes Expense (1,267) (1,391)
25 Other Operating Expenses 33,866 33,866
26 Total Operating Expenses 32,599 32,475
27 Operating Income (Loss) 1,432 1,556
28 Other Income (Loss), Net 461 461
29 Income Before Interest Charges 1,893 2,017
30 Total Interest Charges 1,611 1,912
31 Net Income 282 105
32 Preferred Stock Dividends 0 0
33 Earnings Available For Common Stock 282 105
34 Common Stock Dividends 0 0
35 Total Annual Interest Charges on All Bond 1,678 1,678
36 Cash Flow From Operations 0 0
37 Earnings Per Share-Primary 0.00 0.00
38 Earnings Per Share-Fully Diluted 0.00 0.00
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT G
NORTH ATLANTIC ENERGY CORPORATION
FINANCIAL DATA SCHEDULE
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
PRO FORMA
GIVING EFFECT
ITEM TO PROPOSED
# DESCRIPTION PER BOOK TRANSACTION
<S> <C> <C> <C>
1 Total Net Utility Plant 699,626 699,626
2 Other Property and Investments 16,343 16,343
3 Total Current Assets 53,096 103,096
4 Total Deferred Charges 251,542 251,542
5 Balancing amount for Total Assets 0 0
6 Total Assets 1,020,607 1,070,607
7 Common Stock 1 1
8 Capital Surplus, Paid In 160,999 160,999
9 Retained Earnings 61,367 59,550
10 Total Common Stockholders Equity 222,367 220,550
11 Preferred Stock Subject to Mandatory Rede 0 0
12 Preferred Stock Not Subject to Mandatory 0 0
13 Long Term Debt, Net 540,000 540,000
14 Short Term Notes 0 50,000
15 Notes Payable 0 0
16 Commercial Paper 0 0
17 Long Term Debt-Current Portion 20,000 20,000
18 Preferred Stock-Current Portion 0 0
19 Obligations Under Capital Leases 0 0
20 Obligations Under Capital Leases-Current 0 0
21 Balancing amount of Capitalization and Li 238,240 240,057
22 Total Capitalization and Liabilities 1,020,607 1,070,607
23 Gross Operating Revenue 159,862 159,862
24 Federal and State Income Taxes Expense 10,706 9,518
25 Other Operating Expenses 96,661 96,661
26 Total Operating Expenses 107,367 106,179
27 Operating Income (Loss) 52,495 53,683
28 Other Income (Loss), Net 12,579 12,579
29 Income Before Interest Charges 65,074 66,262
30 Total Interest Charges 40,944 43,949
31 Net Income 24,130 22,313
32 Preferred Stock Dividends 0 0
33 Earnings Available For Common Stock 24,130 22,313
34 Common Stock Dividends 23,500 23,500
35 Total Annual Interest Charges on All Bond 60,122 60,122
36 Cash Flow From Operations 0 0
37 Earnings Per Share-Primary 0.00 0.00
38 Earnings Per Share-Fully Diluted 0.00 0.00
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT G
NORTHEAST UTILITIES AND SUBSIDIARIES
FINANCIAL DATA SCHEDULE
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
PRO FORMA
GIVING EFFECT
ITEM TO PROPOSED
# DESCRIPTION PER BOOK TRANSACTION
<S> <C> <C> <C>
GIVING EFFECT
1 Total Net Utility Plant 6,351,132 6,351,132
2 Other Property and Investments 523,757 523,757
3 Total Current Assets 973,372 1,883,372
4 Total Deferred Charges 2,649,048 2,649,048
5 Balancing amount for Total Assets 0 0
6 Total Assets 10,497,309 11,407,309
7 Common Stock 680,259 680,259
8 Capital Surplus, Paid In 944,965 944,965
9 Retained Earnings 1,016,660 983,845
10 Total Common Stockholders Equity 2,448,047 2,415,232
11 Preferred Stock Subject to Mandatory Rede 301,000 301,000
12 Preferred Stock Not Subject to Mandatory 169,700 169,700
13 Long Term Debt, Net 3,701,066 3,701,066
14 Short Term Notes 40,000 950,000
15 Notes Payable 0 0
16 Commercial Paper 0 0
17 Long Term Debt-Current Portion 218,225 218,225
18 Preferred Stock-Current Portion 1,500 1,500
19 Obligations Under Capital Leases 138,398 138,398
20 Obligations Under Capital Leases-Current 78,407 78,407
21 Balancing amount of Capitalization and Li 3,400,966 3,433,781
22 Total Capitalization and Liabilities 10,497,309 11,407,309
23 Gross Operating Revenue 3,834,057 3,834,057
24 Federal and State Income Taxes Expense 251,433 229,557
25 Other Operating Expenses 3,024,602 3,024,602
26 Total Operating Expenses 3,276,035 3,254,159
27 Operating Income (Loss) 558,022 579,898
28 Other Income (Loss), Net 31,585 31,585
29 Income Before Interest Charges 589,607 611,483
30 Total Interest Charges 294,273 348,964
31 Net Income 295,334 262,519
32 Preferred Stock Dividends 33,682 33,682
33 Earnings Available For Common Stock 261,652 228,837
34 Common Stock Dividends 222,766 222,766
35 Total Annual Interest Charges on All Bond 308,082 308,082
36 Cash Flow From Operations 0 0
37 Earnings Per Share-Primary 2.07 1.81
38 Earnings Per Share-Fully Diluted 2.07 1.81
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT G
NORTHEAST UTILITIES (PARENT COMPANY)
FINANCIAL DATA SCHEDULE
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
PRO FORMA
GIVING EFFECT
ITEM TO PROPOSED
# DESCRIPTION PER BOOK TRANSACTION
<S> <C> <C> <C>
1 Total Net Utility Plant 0 0
2 Other Property and Investments 2,722,053 2,695,489
3 Total Current Assets 1,702 161,702
4 Total Deferred Charges 7,238 7,238
5 Balancing amount for Total Assets 0 0
6 Total Assets 2,730,993 2,864,429
7 Common Stock 680,259 680,259
8 Capital Surplus, Paid In 944,965 944,965
9 Retained Earnings 1,016,660 983,845
10 Total Common Stockholders Equity 2,448,047 2,415,232
11 Preferred Stock Subject to Mandatory Rede 0 0
12 Preferred Stock Not Subject to Mandatory 0 0
13 Long Term Debt, Net 204,000 204,000
14 Short Term Notes 40,000 200,000
15 Notes Payable 0 0
16 Commercial Paper 0 0
17 Long Term Debt-Current Portion 14,000 14,000
18 Preferred Stock-Current Portion 0 0
19 Obligations Under Capital Leases 0 0
20 Obligations Under Capital Leases-Current 0 0
21 Balancing amount of Capitalization and Li 24,946 31,196
22 Total Capitalization and Liabilities 2,730,993 2,864,429
23 Gross Operating Revenue 0 0
24 Federal and State Income Taxes Expense (8,471) (11,837)
25 Other Operating Expenses 12,287 12,287
26 Total Operating Expenses 3,816 450
27 Operating Income (Loss) (3,816) (450)
28 Other Income (Loss), Net 290,267 263,703
29 Income Before Interest Charges 286,451 263,252
30 Total Interest Charges 24,799 34,415
31 Net Income 261,652 228,837
32 Preferred Stock Dividends 0 0
33 Earnings Available For Common Stock 261,652 228,837
34 Common Stock Dividends 222,766 222,766
35 Total Annual Interest Charges on All Bond 19,435 19,435
36 Cash Flow From Operations 0 0
37 Earnings Per Share-Primary 2.07 1.81
38 Earnings Per Share-Fully Diluted 2.07 1.81
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT G
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
FINANCIAL DATA SCHEDULE
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
PRO FORMA
GIVING EFFECT
ITEM TO PROPOSED
# DESCRIPTION PER BOOK TRANSACTION
<S> <C> <C> <C>
1 Total Net Utility Plant 1,609,923 1,609,923
2 Other Property and Investments 22,896 22,896
3 Total Current Assets 260,206 485,206
4 Total Deferred Charges 1,061,903 1,061,903
5 Balancing amount for Total Assets 0 0
6 Total Assets 2,954,928 3,179,928
7 Common Stock 1 1
8 Capital Surplus, Paid In 422,549 422,549
9 Retained Earnings 168,272 160,098
10 Total Common Stockholders Equity 590,822 582,648
11 Preferred Stock Subject to Mandatory Rede 125,000 125,000
12 Preferred Stock Not Subject to Mandatory 0 0
13 Long Term Debt, Net 686,485 686,485
14 Short Term Notes 0 225,000
15 Notes Payable 0 0
16 Commercial Paper 0 0
17 Long Term Debt-Current Portion 172,500 172,500
18 Preferred Stock-Current Portion 0 0
19 Obligations Under Capital Leases 873,361 873,361
20 Obligations Under Capital Leases-Current 40,557 40,557
21 Balancing amount of Capitalization and Li 466,203 474,377
22 Total Capitalization and Liabilities 2,954,928 3,179,928
23 Gross Operating Revenue 997,174 997,174
24 Federal and State Income Taxes Expense 72,264 66,916
25 Other Operating Expenses 766,471 766,471
26 Total Operating Expenses 838,735 833,387
27 Operating Income (Loss) 158,439 163,787
28 Other Income (Loss), Net 5,448 5,448
29 Income Before Interest Charges 163,887 169,235
30 Total Interest Charges 73,910 87,433
31 Net Income 89,977 81,803
32 Preferred Stock Dividends 13,250 13,250
33 Earnings Available For Common Stock 76,727 68,553
34 Common Stock Dividends 52,000 52,000
35 Total Annual Interest Charges on All Bond 73,630 73,630
36 Cash Flow From Operations 0 0
37 Earnings Per Share-Primary 0.00 0.00
38 Earnings Per Share-Fully Diluted 0.00 0.00
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT G
WESTERN MASSACHUSETTS ELECTRIC COMPANY
FINANCIAL DATA SCHEDULE
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
PRO FORMA
GIVING EFFECT
ITEM TO PROPOSED
# DESCRIPTION PER BOOK TRANSACTION
<S> <C> <C> <C>
1 Total Net Utility Plant 815,721 815,721
2 Other Property and Investments 90,833 90,833
3 Total Current Assets 70,463 207,413
4 Total Deferred Charges 152,013 152,013
5 Balancing amount for Total Assets 0 0
6 Total Assets 1,129,030 1,265,980
7 Common Stock 26,812 26,812
8 Capital Surplus, Paid In 150,255 150,255
9 Retained Earnings 113,194 108,192
10 Total Common Stockholders Equity 290,261 285,259
11 Preferred Stock Subject to Mandatory Rede 21,000 21,000
12 Preferred Stock Not Subject to Mandatory 53,500 53,500
13 Long Term Debt, Net 347,956 347,956
14 Short Term Notes 13,050 150,000
15 Notes Payable 0 0
16 Commercial Paper 0 0
17 Long Term Debt-Current Portion 0 0
18 Preferred Stock-Current Portion 1,500 1,500
19 Obligations Under Capital Leases 19,328 19,328
20 Obligations Under Capital Leases-Current 14,250 14,250
21 Balancing amount of Capitalization and Li 368,185 373,187
22 Total Capitalization and Liabilities 1,129,030 1,265,980
23 Gross Operating Revenue 428,547 428,547
24 Federal and State Income Taxes Expense 14,355 11,127
25 Other Operating Expenses 355,523 355,523
26 Total Operating Expenses 369,878 366,650
27 Operating Income (Loss) 58,669 61,897
28 Other Income (Loss), Net 2,859 2,859
29 Income Before Interest Charges 61,528 64,756
30 Total Interest Charges 26,362 34,593
31 Net Income 35,166 30,164
32 Preferred Stock Dividends 4,873 4,873
33 Earnings Available For Common Stock 30,293 25,291
34 Common Stock Dividends 31,680 31,680
35 Total Annual Interest Charges on All Bond 25,860 25,860
36 Cash Flow From Operations 0 0
37 Earnings Per Share-Primary 0.00 0.00
38 Earnings Per Share-Fully Diluted 0.00 0.00
</TABLE>
<TABLE>
<CAPTION>
NORTHEAST UTILITIES PARENT CO. EXHIBIT H.1a
PROJECTED MONTH ENDING SHORT-TERM DEBT LEVEL
(THOUSANDS OF DOLLARS)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1996 1996 1996 1996 1996 1996 1996 1996 1996 1996 1996 1996
NU PARENT :
ENDING SHORT-TERM DEB(a) 52,621 53,094 25,912 37,491 75,205 44,601 61,610 61,171 39,203 55,265 54,457 56,408
CONTINGENCIES: (b) 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
(c) 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
(d) 26,000 26,000 26,000 26,000 26,000 26,000 26,000 26,000 26,000 26,000 26,000 26,000
-----------------------------------------------------------------------------------------------------------
123,621 124,094 96,912 108,491 146,205 115,601 132,610 132,171 110,203 126,265 125,457 127,408
NAEC :
ENDING SHORT-TERM DEB(a) (9,209) (16,930) (15,513) (28,530) (36,891) (1,203) (10,548) (19,794) (23,935) (32,796) (42,080) (27,707)
CONTINGENCIES: (b) 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
(e) 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000
-----------------------------------------------------------------------------------------------------------
30,791 23,070 24,487 11,470 3,109 38,797 29,452 20,206 16,065 7,204 (2,080) 12,293
HWP :
ENDING SHORT-TERM DEB(a) (6,349) (6,558) (6,609) (6,606) (6,714) (6,682) (6,963) (7,204) (6,891) (6,557) (6,753) (5,890)
CONTINGENCIES: (f) 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000
-----------------------------------------------------------------------------------------------------------
4,651 4,442 4,391 4,394 4,286 4,318 4,037 3,796 4,109 4,443 4,247 5,110
RR & QUINN :
ENDING SHORT-TERM DEB(a) 21,351 21,236 21,346 21,195 21,149 21,654 21,868 21,861 21,782 21,768 21,706 21,478
CONTINGENCIES: (b) 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
-----------------------------------------------------------------------------------------------------------
24,351 24,236 24,346 24,195 24,149 24,654 24,868 24,861 24,782 24,768 24,706 24,478
HEC INC. :
ENDING SHORT-TERM DEB(a) 297 241 180 169 113 102 46 (10) (162) (218) (274) (285)
CONTINGENCIES: (b) 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
-----------------------------------------------------------------------------------------------------------
3,297 3,241 3,180 3,169 3,113 3,102 3,046 2,990 2,838 2,782 2,726 2,715
NNECO :
ENDING SHORT-TERM DEB(a) (27,518) (27,438) (27,544) (27,677) (28,133) (27,917) (28,379) (28,283) (28,067) (28,535) (29,001) (28,763)
CONTINGENCIES: (b) 29,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000
-----------------------------------------------------------------------------------------------------------
1,482 1,562 1,456 1,323 867 1,083 621 717 933 465 (1) 237
TOTAL NU PARENT :
ENDING SHORT-TERM DEB(a) 31,193 23,645 (2,228) (3,958) 24,729 30,555 37,634 27,741 1,930 8,927 (1,945) 15,241
CONTINGENCIES: (b) 157,000 157,000 157,000 157,000 157,000 157,000 157,000 157,000 157,000 157,000 157,000 157,000
-----------------------------------------------------------------------------------------------------------
188,193 180,645 154,772 153,042 181,729 187,555 194,634 184,741 158,930 165,927 155,055 172,241
(a) Short-term debt levels based on the Company's Receipt and Disbursements Forecast (attached).
(b) Contingency based on an estimate of average monthly variances of actual high and low cash balances between June 1995-June 1996.
(c) Contingency assumes additional investments by Charter Oak Energy not contained in the forecast, estimated to be $25 million.
(d) Contingency assumes additional investments in telecommunication or other diversification projects not contained in the
forecast, estimated to be $26 million.
(e) Includes an estimated $30 million contingency to refinance the NAEC bank term loan.
(f) HWP has been in cash over the past year, however a contingency of $11 million was assumed to arrive at HWP's current and
proposed short-term debt limit of $5 million.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
### NUPARENT 1996
1Thursday, May 2, 1996 5:20:41 pm
NORTHEAST UTILITIES PARENT CO.
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
BEGINNING CASH BALANCE 11490 4879 4406 4906 () 500 439
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ESOP RECEIPTS 1400 1409 1417 1425 1433 1442 1450 1458 1467
OTHER REVENUE
INTEREST INCOME 38 19 17 17
DIVIDENDS RECEIVED 75582 75581 75581
OTHER RECEIPTS (1) (1) (1) (1) (1) (1) (1) (1) (1)
PAYMENTS FROM ASSOC. COS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 1437 1427 77015 1441 1432 77022 1449 1457 77047
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES
FEDERAL INCOME TAX (5790) (2310) (3237)
STATE INCOME TAX
O&M LABOR 457 584 549 577 636 501 253 156 159
O&M NON-LABOR 1766 1066 1364 1282 1348 1485 1170 590 365
INTEREST ON SHORT-TERM DEBT 249 249 249 133 162 325 195 266 266
INTEREST ON LONG-TERM DEBT 2430 7121 2179
PREFERRED DIVIDEND
COMMON DIVIDEND 5577 39242 16818 39294 16840 39346
MISC DISBURSEMENTS
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 8048 1899 43833 13020 2146 46417 18458 1013 39079
CASH GENERATION BEFORE CONST (6611) (472) 33182 (11579) (714) 30604 (17009) 444 37968
CONST EXP - LABOR
CONST EXP - NON-LABOR
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES
INTERNAL CASH BEFORE FINANCINGS 4879 4406 37588 (6673) (714) 30604 (16509) 444 38407
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTHEAST UTILITIES PARENT CO.
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 500 () 500 11490
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ESOP RECEIPTS 1475 1484 1492 17352
OTHER REVENUE
INTEREST INCOME 91
DIVIDENDS RECEIVED 75581 302325
OTHER RECEIPTS (1) (1) (1) (12)
PAYMENTS FROM ASSOC. COS
__ ________ ________ ________ _____
TOTAL RECEIPTS 1474 1483 77072 319756
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES
FEDERAL INCOME TAX (3282) (14619)
STATE INCOME TAX
O&M LABOR 130 128 127 4258
O&M NON-LABOR 372 303 298 11410
INTEREST ON SHORT-TERM DEBT 172 239 238 2743
INTEREST ON LONG-TERM DEBT 7121 18852
PREFERRED DIVIDEND
COMMON DIVIDEND 16863 50657 224636
MISC DISBURSEMENTS
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 17536 670 55160 247281
CASH GENERATION BEFORE CONST (16062) 813 21912 72475
CONST EXP - LABOR
CONST EXP - NON-LABOR
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES
INTERNAL CASH BEFORE FINANCINGS (15562) 813 22412 83965
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:41 pm
NORTHEAST UTILITIES PARENT CO.
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE (5)
CAPITAL CONTR TO SUBS (37000) (16000)
CASH RETIREMENTS-LTD (6000)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (6000) (37000) (5) (16000)
CASH BEFORE AUTOMATIC FINANCINGS 4879 4406 31588 (6673) (37714) 30604 (16509) 439 22407
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED 6673 37714 16509
SHORT-TERM DEBT REPAID (26682) (30104) (21907)
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS (26682) 6673 37714 (30104) 16509 (21907)
ENDING CASH BALANCE 4879 4406 4906 () 500 439 500
ENDING BALANCES:
---------------
CASH () 500 () 500 439 500
TEMP CASH INVESTMENTS 4879 4406 4406
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 4879 4406 4906 () 500 439 500
SHORT TERM DEBT 57500 57500 30818 37491 75205 45101 61610 61610 39703
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD (52621) (53094) (25912) (37491) (75205) (44601) (61610) (61171) (39203)
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTHEAST UTILITIES PARENT CO.
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE (5) (10)
CAPITAL CONTR TO SUBS (15863) (68863)
CASH RETIREMENTS-LTD (8000) (14000)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING (5) (23863) (82873)
CASH BEFORE AUTOMATIC FINANCINGS (15562) 808 (1451) 1092
SHORT-TERM DEBT BORROWED 15562 1451 77908
SHORT-TERM DEBT REPAID (308) (79001)
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS 15562 (308) 1451 (1092)
ENDING CASH BALANCE 500 () 0
ENDING BALANCES:
---------------
CASH () 500
TEMP CASH INVESTMENTS
__ ________ ________ ________ _____
TOTAL CASH BALANCE () 500
SHORT TERM DEBT 55265 54957 56408 56408
__ ________ ________ ________ _____
NET CASH + TCI - STD (55265) (54457) (56408) (56408)
</TABLE>
<TABLE>
<CAPTION>
#### NAEC 1996
1Thursday, May 2, 1996 5:20:16 pm
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
BEGINNING CASH BALANCE 11585 9209 16930 15513 28530 36891 1203 10548 19794
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED (360)
OTHER REVENUE
INTEREST INCOME 10 34 64 61 109 142 5 39 75
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS FROM ASSOC. COS 13313 12535 12521 13090 13002 13895 13972 13969 14086
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 12963 12569 12585 13151 13111 14037 13977 14008 14161
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL 265 294 313 256 313 304 265 313 304
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 142 143 128 1466 117 5524 118 116 89
FEDERAL INCOME TAX (5765) (5206) (4169)
STATE INCOME TAX 160
O&M LABOR 1078 1080 1005 1016 1136 1024 1044 1082 1001
O&M NON-LABOR 5039 2516 2520 2346 2370 2650 2390 2436 2524
INTEREST ON SHORT-TERM DEBT 35
INTEREST ON LONG-TERM DEBT 3562 19113 3955
PREFERRED DIVIDEND
COMMON DIVIDEND 5500 5500 5500
MISC DISBURSEMENTS 63 63 63 63 63 64 64 64 64
NUCLEAR DECOMMISSIONING 285 285 285 285 285 285 285 285 285
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 6914 4388 13542 (326) 4291 29264 4173 4302 9560
CASH GENERATION BEFORE CONST 6049 8181 (957) 13477 8820 (15228) 9804 9706 4601
CONST EXP - LABOR 43 43 43 43 43 43 43 43 43
CONST EXP - NON-LABOR 383 417 417 417 417 417 417 417 417
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 426 460 460 460 460 460 460 460 460
INTERNAL CASH BEFORE FINANCINGS 17209 16930 15513 28530 36891 21203 10548 19794 23935
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 23935 32796 42080 11585
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED (360)
OTHER REVENUE
INTEREST INCOME 91 126 162 918
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS FROM ASSOC. COS 13720 13783 13828 161714
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 13811 13909 13990 162272
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL 681 304 313 3925
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 79 88 4368 12377
FEDERAL INCOME TAX (4199) (19339)
STATE INCOME TAX 32 192
O&M LABOR 1039 994 1005 12505
O&M NON-LABOR 2337 2423 2320 31872
INTEREST ON SHORT-TERM DEBT 35
INTEREST ON LONG-TERM DEBT 18209 44838
PREFERRED DIVIDEND
COMMON DIVIDEND 5500 22000
MISC DISBURSEMENTS 64 64 64 764
NUCLEAR DECOMMISSIONING 285 285 285 3420
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 4491 4166 27903 112669
CASH GENERATION BEFORE CONST 9320 9743 (13913) 49603
CONST EXP - LABOR 43 43 43 510
CONST EXP - NON-LABOR 417 417 417 4971
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 460 460 460 5481
INTERNAL CASH BEFORE FINANCINGS 32796 42080 27707 55707
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:16 pm
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (20000)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (20000)
CASH BEFORE AUTOMATIC FINANCINGS 17209 16930 15513 28530 36891 1203 10548 19794 23935
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID (8000)
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS (8000)
ENDING CASH BALANCE 9209 16930 15513 28530 36891 1203 10548 19794 23935
ENDING BALANCES:
---------------
CASH 500 500 500 500 500 500 500
TEMP CASH INVESTMENTS 8709 16430 15513 28030 36391 1203 10048 19294 23435
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 9209 16930 15513 28530 36891 1203 10548 19794 23935
SHORT TERM DEBT
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD 9209 16930 15513 28530 36891 1203 10548 19794 23935
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (20000)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING (20000)
CASH BEFORE AUTOMATIC FINANCINGS 32796 42080 27707 35707
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID (8000)
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS (8000)
ENDING CASH BALANCE 32796 42080 27707 27707
ENDING BALANCES:
---------------
CASH 500 500
TEMP CASH INVESTMENTS 32296 41580 27707 27707
__ ________ ________ ________ _____
TOTAL CASH BALANCE 32796 42080 27707 27707
SHORT TERM DEBT
__ ________ ________ ________ _____
NET CASH + TCI - STD 32796 42080 27707 27707
</TABLE>
<TABLE>
<CAPTION>
#### HOLY 1996
1Thursday, May 2, 1996 5:20:06 pm
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
BEGINNING CASH BALANCE 7055 6349 6558 6609 6606 6714 6682 6963 7204
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL 544 590 538 569 585 519 605 544 505
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE 191 60 60 60 60 60 60 60 60
INTEREST INCOME 27 25 25 25 25 25 25 25 26
DIVIDENDS RECEIVED
OTHER RECEIPTS
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 762 674 622 653 669 603 689 629 591
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL 2436 1744 1740 1692 1724 1564 1502 1775 1742
NUCLEAR FUEL
PURCHASED POWER (15) (15) (15) (10) (10) (15) (15) (15) (8)
INTERCOMPANY BILLINGS - NUGT (2903) (2751) (2717) (2878) (2676) (2541) (2879) (2888) (2484)
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 476 60 59 479 47 53 476 45 42
FEDERAL INCOME TAX 32 47 32
STATE INCOME TAX 18 18 22
O&M LABOR 306 313 304 338 331 310 327 352 307
O&M NON-LABOR 833 715 731 710 790 771 722 763 822
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 90 174 243 50 130 203 50 130 203
PREFERRED DIVIDEND
COMMON DIVIDEND
MISC DISBURSEMENTS (6) (6) (6) (6) (6) (6) (6) (6) (6)
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 12 12 12 12 12 12 12 12 12
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 1229 246 352 437 341 416 189 168 684
CASH GENERATION BEFORE CONST (466) 428 271 216 328 188 500 461 (93)
CONST EXP - LABOR 20 20 20 20 20 20 20 20 20
CONST EXP - NON-LABOR 219 199 199 199 199 199 199 199 199
INV NOT INCLUDED IN CONST
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 239 220 220 220 220 220 220 220 220
INTERNAL CASH BEFORE FINANCINGS 6349 6558 6609 6606 6714 6682 6963 7204 6891
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 6891 6557 6753 7055
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL 547 540 526 6612
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE 60 60 60 847
INTEREST INCOME 26 26 26 305
DIVIDENDS RECEIVED
OTHER RECEIPTS
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 633 625 611 7764
CASH DISBURSEMENTS:
FOSSIL FUEL 1457 1834 1951 21161
NUCLEAR FUEL
PURCHASED POWER (8) (11) (11) (149)
INTERCOMPANY BILLINGS - NUGT (2353) (3061) (2060) (32192)
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 491 35 21 2284
FEDERAL INCOME TAX 82 194
STATE INCOME TAX 18 75
O&M LABOR 388 372 165 3813
O&M NON-LABOR 716 904 867 9346
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 50 130 203 1656
PREFERRED DIVIDEND
COMMON DIVIDEND
MISC DISBURSEMENTS (6) (6) (6) (72)
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 12 12 12 146
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 747 210 1244 6263
CASH GENERATION BEFORE CONST (114) 415 (632) 1501
CONST EXP - LABOR 20 20 31 255
CONST EXP - NON-LABOR 199 199 199 2412
INV NOT INCLUDED IN CONST
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 220 220 231 2667
INTERNAL CASH BEFORE FINANCINGS 6557 6753 5890 5890
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:06 pm
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING
CASH BEFORE AUTOMATIC FINANCINGS 6349 6558 6609 6606 6714 6682 6963 7204 6891
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 6349 6558 6609 6606 6714 6682 6963 7204 6891
ENDING BALANCES:
---------------
CASH 209 260 256 365 333 500 500 187
TEMP CASH INVESTMENTS 6349 6349 6349 6349 6349 6349 6463 6704 6704
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 6349 6558 6609 6606 6714 6682 6963 7204 6891
SHORT TERM DEBT
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD 6349 6558 6609 6606 6714 6682 6963 7204 6891
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING
CASH BEFORE AUTOMATIC FINANCINGS 6557 6753 5890 5890
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 6557 6753 5890 5890
ENDING BALANCES:
---------------
CASH 196
TEMP CASH INVESTMENTS 6557 6557 5890 5890
__ ________ ________ ________ _____
TOTAL CASH BALANCE 6557 6753 5890 5890
SHORT TERM DEBT
__ ________ ________ ________ _____
NET CASH + TCI - STD 6557 6753 5890 5890
</TABLE>
<TABLE>
<CAPTION>
#### RRQ 1996
1Thursday, May 2, 1996 5:20:20 pm
ROCKY RIVER & QUINNEHTUK
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
BEGINNING CASH BALANCE 125 115 5 156 202 6
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL 895 891 890 889 887 885 884 890 889
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE
INTEREST INCOME
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS RECEIVED _ ASSOC. COS
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 895 891 890 889 887 885 884 890 889
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 190 191 191 191 190 190 199 198 198
FEDERAL INCOME TAX 319 (70) (70) (70)
STATE INCOME TAX (48) 0 0 0
O&M LABOR 15 15 15 15 15 15 15 15 15
O&M NON-LABOR 45 36 35 36 35 34 34 35 35
INSURANCE
INTEREST ON SHORT-TERM DEBT 92 92 92 92 92 92 94 95 95
INTEREST ON LONG-TERM DEBT 593 314 289 289 288 311 560 308 285
PREFERRED DIVIDEND
COMMON DIVIDEND
MISC DISBURSEMENTS 5 5 5 5 5 5 5 5 5
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DIBURSEMENTS 940 653 899 558 625 578 907 656 563
CASH GENERATION BEFORE CONST (45) 238 (9) 331 262 307 (22) 234 326
CONST EXP - LABOR () () 8 13 (1) 9 9 14 14
CONST EXP - NON-LABOR 38 () () 74 124 (13) 87 87 137
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 38 () 7 87 122 (4) 95 101 150
INTERNAL CASH BEFORE FINANCINGS 42 238 98 249 295 514 (118) 134 182
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
ROCKY RIVER & QUINNEHTUK
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 86 100 162 125
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL 888 887 886 10,664
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE
INTEREST INCOME
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS RECEIVED _ ASSOC. COS
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 888 887 886 10,664
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 198 197 197 2,330
FEDERAL INCOME TAX (70) 40
STATE INCOME TAX 0 (48)
O&M LABOR 15 15 15 180
O&M NON-LABOR 34 35 34 429
INSURANCE
INTEREST ON SHORT-TERM DEBT 95 95 95 1,120
INTEREST ON LONG-TERM DEBT 285 284 283 4,090
PREFERRED DIVIDEND
COMMON DIVIDEND
MISC DISBURSEMENTS 5 5 5 60
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ _____
TOTAL OPERATING DIBURSEMENTS 631 631 560 8,202
CASH GENERATION BEFORE CONST 257 257 326 2,462
CONST EXP - LABOR 10 0 1 76
CONST EXP - NON-LABOR 137 99 0 768
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 147 99 1 844
INTERNAL CASH BEFORE FINANCINGS 196 258 486 1,743
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:20 pm
ROCKY RIVER & QUINNEHTUK
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (93) (123) (93) (93) (93) (816) (96) (127) (96)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (93) (123) (93) (93) (93) (816) (96) (127) (96)
CASH BEFORE AUTOMATIC FINANCINGS (51) 115 5 156 202 (303) (214) 6 86
AUTOMATIC FINANINGS
SHORT-TERM DEBT BORROWED 51 303 214
SHORT-TERM DEBT REPAID
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS 51 303 214
ENDING CASH BALANCE () 115 5 156 202 () () 6 86
ENDING BALANCES:
---------------
CASH 115 5 156 202 6 86
TEMP CASH INVESTMENTS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 115 5 156 202 6 86
SHORT TERM DEBT 21,351 21,351 21,351 21,351 21,351 21,654 21,868 21,868 21,868
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD (21,351) (21,236) (21,346) (21,195) (21,149) (21,654) (21,868) (21,861) (21,782) (
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
ROCKY RIVER & QUINNEHTUK
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (96) (96) (96) (1,920)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
__ ________ ________ ________ _____
NET PLANNED FINANCING (96) (96) (96) (1,920)
CASH BEFORE AUTOMATIC FINANCINGS 100 162 390 (178)
SHORT-TERM DEBT BORROWED 568
SHORT-TERM DEBT REPAID
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS 568
ENDING CASH BALANCE 100 162 390 390
ENDING BALANCES:
---------------
CASH 100 162 390 390
TEMP CASH INVESTMENTS
__ ________ ________ ________ _____
TOTAL CASH BALANCE 100 162 390 390
SHORT TERM DEBT 21,868 21,868 21,868 21,868
__ ________ ________ ________ _____
NET CASH + TCI - STD ( 21,768) (21,706) (21,478) (21,478)
</TABLE>
<TABLE>
<CAPTION>
### HEC 1996
1Thursday, May 2, 1996 5:20:37 pm
HEC
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
BEGINNING CASH BALANCE 1,322 400 400 400 400 400 400 400 400
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE
INTEREST INCOME 10 10 10 10 10 10 10 10 10
DIVIDENDS RECEIVED
OTHER RECEIPTS 1,305 1,305 1,305 1,305 1,305 1,305 1,305 1,305 1,305
PAYMENTS RECEIVED _ ASSOC. COS
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 1,315 1,315 1,315 1,315 1,315 1,315 1,315 1,315 1,315
CASH DISBURSEMENTS
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES
FEDERAL INCOME TAX 35 35 (106)
STATE INCOME TAX (5) 11 11 11
O&M LABOR
O&M NON-LABOR 1,231 1,231 1,231 1,231 1,231 1,231 1,231 1,231 1,231
INSURANCE
INTEREST ON SHORT-TERM DEBT 8 8 8 8 8 8 8 8 8
INTEREST ON LONG-TERM DEBT
PREFERRED DIVIDEND
COMMON DIVIDEND
MISC DISBURSEMENTS 20 20 20 20 20 20 20 20 20
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SBK II SETTLEMENT
COST OF REMOVAL
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DIBURSEMENTS 1,259 1,259 1,254 1,304 1,259 1,304 1,259 1,259 1,163
CASH GENERATION BEFORE CONST 56 56 61 11 56 11 56 56 152
CONST EXP - LABOR
CONST EXP - NON-LABOR
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES
INTERNAL CASH BEFORE FINANCINGS 1,378 456 461 411 456 411 456 456 552
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
HEC
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 400 400 400 1,322
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE
INTEREST INCOME 10 10 10 121
DIVIDENDS RECEIVED
OTHER RECEIPTS 1,305 1,305 1,305 15,660
PAYMENTS RECEIVED _ ASSOC. COS
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 1,315 1,315 1,315 15,781
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES
FEDERAL INCOME TAX 35 (3)
STATE INCOME TAX 11 38
O&M LABOR
O&M NON-LABOR 1,231 1,231 1,231 14,772
INSURANCE
INTEREST ON SHORT-TERM DEBT 8 8 8 101
INTEREST ON LONG-TERM DEBT
PREFERRED DIVIDEND
COMMON DIVIDEND
MISC DISBURSEMENTS 20 20 20 235
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SBK II SETTLEMENT
COST OF REMOVAL
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ _____
TOTAL OPERATING DIBURSEMENTS 1,259 1,259 1,304 15,143
CASH GENERATION BEFORE CONST 56 56 11 638
CONST EXP - LABOR
CONST EXP - NON-LABOR
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES
INTERNAL CASH BEFORE FINANCINGS 456 456 411 1,960
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:37 pm
HEC
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING
CASH BEFORE AUTOMATIC FINANCINGS 1,378 456 461 411 456 411 456 456 552
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID (978) (56) (61) (11) (56) (11) (56) (56) (152)
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS (978) (56) (61) (11) (56) (11) (56) (56) (152)
ENDING CASH BALANCE 400 400 400 400 400 400 400 400 400
ENDING BALANCES:
---------------
CASH 400 400 400 400 400 400 400 400 400
TEMP CASH INVESTMENTS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 400 400 400 400 400 400 400 400 400
SHORT TERM DEBT 697 641 580 569 513 502 446 390 238
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD (297) (241) (180) (169) (113) (102) (46) 10 162
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
HEC
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
__ ________ ________ ________ _____
NET PLANNED FINANCING
CASH BEFORE AUTOMATIC FINANCINGS 456 456 411 1,960
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID (56) (56) (11) (1,560)
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS (56) (56) (11) (1,560)
ENDING CASH BALANCE 400 400 400 400
ENDING BALANCES:
---------------
CASH 400 400 400 400
TEMP CASH INVESTMENTS
__ ________ ________ ________ _____
TOTAL CASH BALANCE 400 400 400 400
SHORT TERM DEBT 182 126 115 115
__ ________ ________ ________ _____
NET CASH + TCI - STD 218 274 285 285
</TABLE>
<TABLE>
<CAPTION>
### NNEC 1996
1Thursday, May 2, 1996 5:20:28 pm
NORTHEAST NUCLEAR ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
BEGINNING CASH BALANCE 27,005 27,518 27,438 27,544 27,677 28,133 27,917 28,379 28,283
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL 32,424 27,307 24,712 28,111 29,763 26,896 27,006 28,221 27,779
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE
INTEREST INCOME 105 105 105 105 106 108 108 109 109
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS RECEIVED _ ASSOC. COS
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 32,529 27,412 24,817 28,216 29,869 27,003 27,114 28,330 27,888
CASH DISBURSEMENTS
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 519 1,772 1,174 1,184 947 951 1,087 1,441 933
FEDERAL INCOME TAX 1 240 240 244
STATE INCOME TAX 86 86 87
O&M LABOR 8,038 6,568 7,463 8,762 7,624 7,405 7,889 8,179 7,007
O&M NON-LABOR 23,084 18,755 15,326 17,415 20,445 17,790 17,277 18,409 19,083
INSURANCE
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 147 146 146 146 146 146 146 145
PREFERRED DIVIDEND
COMMON DIVIDEND 350 350 350
MISC DISBURSEMENTS 319 219 219 219 219 220 222 222 223
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DIBURSEMENTS 31,960 27,462 24,681 28,052 29,382 27,189 26,621 28,396 28,073
CASH GENERATION BEFORE CONST 569 (50) 136 164 487 (185) 492 (65) (185)
CONST EXP - LABOR 0 () 0 0 0 0 0 0 0
CONST EXP - NON-LABOR 26 0 () 0 0 0 0 0 0
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 26 0 () 0 0 0 0 0 0
INTERNAL CASH BEFORE FINANCINGS 27,548 27,468 27,574 27,707 28,164 27,948 28,409 28,313 28,097
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTHEAST NUCLEAR ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 28,067 28,535 29,001 27,005
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL 26,300 28,230 28,619 335,368
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE
INTEREST INCOME 109 109 111 1,290
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS RECEIVED _ ASSOC. COS
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 26,409 28,340 28,730 336,657
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 870 756 714 12,348
FEDERAL INCOME TAX 247 972
STATE INCOME TAX 88 348
O&M LABOR 8,322 7,300 10,113 94,671
O&M NON-LABOR 16,349 19,419 17,034 220,387
INSURANCE
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 145 145 145 1,603
PREFERRED DIVIDEND
COMMON DIVIDEND 350 1,400
MISC DISBURSEMENTS 223 223 223 2,752
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ _____
TOTAL OPERATING DIBURSEMENTS 25,909 27,843 28,914 334,481
CASH GENERATION BEFORE CONST 499 497 (184) 2,176
CONST EXP - LABOR 0 0 23 24
CONST EXP - NON-LABOR 0 0 0 29
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 0 0 24 53
INTERNAL CASH BEFORE FINANCINGS 28,566 29,032 28,794 29,128
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:28 pm
NORTHEAST NUCLEAR ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (30) (30) (30) (30) (30) (30) (30) (30) (30)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (30) (30) (30) (30) (30) (30) (30) (30) (30)
CASH BEFORE AUTOMATIC FINANCINGS 27,518 27,438 27,544 27,677 28,133 27,917 28,379 28,283 28,067
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 27,518 27,438 27,544 27,677 28,133 27,917 28,379 28,283 28,067
ENDING BALANCES:
---------------
CASH 500 420 500 500 500 284 500 404 188
TEMP CASH INVESTMENTS 27,018 27,018 27,044 27,177 27,633 27,633 27,879 27,879 27,879
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 27,518 27,438 27,544 27,677 28,133 27,917 28,379 28,283 28,067
SHORT TERM DEBT
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD 27,518 27,438 27,544 27,677 28,133 27,917 28,379 28,283 28,067
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTHEAST NUCLEAR ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (30) (30) (30) (365)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
__ ________ ________ ________ _____
NET PLANNED FINANCING (30) (30) (30) (365)
CASH BEFORE AUTOMATIC FINANCINGS 28,535 29,001 28,763 28,763
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 28,535 29,001 28,763 28,763
ENDING BALANCES:
---------------
CASH 500 500 262 262
TEMP CASH INVESTMENTS 28,035 28,501 28,501 28,501
__ ________ ________ ________ _____
TOTAL CASH BALANCE 28,535 29,001 28,763 28,763
SHORT TERM DEBT
__ ________ ________ ________ _____
NET CASH + TCI - STD 28,535 29,001 28,763 28,763
</TABLE>
<TABLE>
<CAPTION>
#### NUP 1997
NORTHEAST UTILITIES PARENT CO. EXHIBIT H.1b
PROJECTED MONTH ENDING SHORT-TERM DEBT LEVEL
(THOUSANDS OF DOLLARS)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1997 1997 1997 1997 1997 1997 1997 1997 1997 1997 1997 1997
NU PARENT :
ENDING SHORT-TERM DEB(a) 61,109 60,067 44,066 57,403 56,358 54,411 71,573 70,523 40,494 57,581 56,427 58,950
CONTINGENCIES: (b) 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
(c) 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
(d) 26,000 26,000 26,000 26,000 26,000 26,000 26,000 26,000 26,000 26,000 26,000 26,000
-----------------------------------------------------------------------------------------------------------
132,109 131,067 115,066 128,403 127,358 125,411 142,573 141,523 111,494 128,581 127,427 129,950
NAEC :
ENDING SHORT-TERM DEB(a) (36,384) (44,874) (37,120) (36,923) (45,470) (7,098) (15,973) (23,800) (22,237) (30,972) (40,603) (29,368)
CONTINGENCIES: (b) 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
(e) 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000
-----------------------------------------------------------------------------------------------------------
3,616 (4,874) 2,880 3,077 (5,470) 32,902 24,027 16,200 17,763 9,028 (603) 10,632
HWP :
ENDING SHORT-TERM DEB(a) (5,676) (6,950) (6,955) (6,751) (7,330) (6,568) (6,637) (6,752) (6,337) (6,203) (4,709) (5,393)
CONTINGENCIES: (f) 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000
-----------------------------------------------------------------------------------------------------------
5,324 4,050 4,045 4,249 3,670 4,432 4,363 4,248 4,663 4,797 6,291 5,607
RR & QUINN :
ENDING SHORT-TERM DEB(a) 21,610 21,514 21,375 21,230 21,081 21,744 21,875 21,788 21,652 21,511 21,371 21,237
CONTINGENCIES: (b) 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
-----------------------------------------------------------------------------------------------------------
24,610 24,514 24,375 24,230 24,081 24,744 24,875 24,788 24,652 24,511 24,371 24,237
HEC INC. :
ENDING SHORT-TERM DEB(a) (352) (419) (482) (489) (556) (563) (630) (698) (705) (772) (839) (846)
CONTINGENCIES: (b) 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
-----------------------------------------------------------------------------------------------------------
2,648 2,581 2,518 2,511 2,444 2,437 2,370 2,302 2,295 2,228 2,161 2,154
NNECO :
ENDING SHORT-TERM DEB(a) (29,007) (28,913) (28,829) (28,921) (29,387) (28,971) (29,444) (29,307) (28,894) (29,375) (29,850) (29,438)
CONTINGENCIES: (b) 29,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000
-----------------------------------------------------------------------------------------------------------
(7) 87 171 79 (387) 29 (444) (307) 106 (375) (850) (438)
TOTAL NU PARENT :
ENDING SHORT-TERM DEB(a) 11,300 425 (7,945) 5,549 (5,304) 32,955 40,764 31,754 3,973 11,770 1,797 15,142
CONTINGENCIES: (b) 157,000 157,000 157,000 157,000 157,000 157,000 157,000 157,000 157,000 157,000 157,000 157,000
-----------------------------------------------------------------------------------------------------------
168,300 157,425 149,055 162,549 151,696 189,955 197,764 188,754 160,973 168,770 158,797 172,142
(a) Short-term debt levels based on the Company's Receipt and Disbursements Forecast (attached).
(b) Contingency based on an estimate of average monthly variances of actual high and low cash balances between June 1995-June 1996.
(c) Contingency assumes additional investments by Charter Oak Energy not contained in the forecast, estimated to be $25 million.
(d) Contingency assumes additional investments in telecommunication or other diversification projects not contained in the
forecast, estimated to be $26 million.
(e) Includes an estimated $30 million contingency to refinance the NAEC bank term loan.
(f) HWP has been in cash over the past year, however a contingency of $11 million was assumed to arrive at HWP's current and
proposed short-term debt limit of $5 million.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
### NUPARENT 1997
1Thursday, May 2, 1996 5:20:41 pm
NORTHEAST UTILITIES PARENT CO.
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
BEGINNING CASH BALANCE 500 500 500 500 500
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ESOP RECEIPTS 1547 1556 1565 1575 1584 1593 1603 1612 1622
OTHER REVENUE
INTEREST INCOME
DIVIDENDS RECEIVED 70969 70973 70980
OTHER RECEIPTS (1) (1) (1) (1) (1) (1) (1) (1) (1)
PAYMENTS FROM ASSOC. COS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 1546 1555 72533 1574 1583 72565 1602 1611 72601
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES
FEDERAL INCOME TAX (3873) (469) (7828)
STATE INCOME TAX
O&M LABOR 72 74 680 90 75 648 74 71 645
O&M NON-LABOR 297 168 172 1587 209 174 1513 172 165
INTEREST ON SHORT-TERM DEBT 250 271 269 198 254 252 243 317 315
INTEREST ON LONG-TERM DEBT 2179 6778 1927
PREFERRED DIVIDEND
COMMON DIVIDEND 5629 39456 16910 39513 16934 39571
MISC DISBURSEMENTS
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 6247 513 42755 14911 538 46897 18765 560 34796
CASH GENERATION BEFORE CONST (4701) 1042 29778 (13337) 1045 25668 (17163) 1051 37805
CONST EXP - LABOR
CONST EXP - NON-LABOR
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES
INTERNAL CASH BEFORE FINANCINGS (4701) 1042 30278 (12837) 1045 26168 (16663) 1051 38305
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTHEAST UTILITIES PARENT CO.
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 500 500
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ESOP RECEIPTS 1631 1641 1650 19179
OTHER REVENUE
INTEREST INCOME
DIVIDENDS RECEIVED 70999 283921
OTHER RECEIPTS (1) (1) (1) (12)
PAYMENTS FROM ASSOC. COS
__ ________ ________ ________ _____
TOTAL RECEIPTS 1630 1640 72648 303088
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES
FEDERAL INCOME TAX (1398) (13568)
STATE INCOME TAX
O&M LABOR 69 69 648 3214
O&M NON-LABOR 1506 162 161 6289
INTEREST ON SHORT-TERM DEBT 182 255 252 3059
INTEREST ON LONG-TERM DEBT 6778 17663
PREFERRED DIVIDEND
COMMON DIVIDEND 16959 50953 225923
MISC DISBURSEMENTS
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 18716 486 57394 242578
CASH GENERATION BEFORE CONST (17086) 1154 15254 60510
CONST EXP - LABOR
CONST EXP - NON-LABOR
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES
INTERNAL CASH BEFORE FINANCINGS (16586) 1154 15754 60510
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:41 pm
NORTHEAST UTILITIES PARENT CO.
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS (7777) (7777) (7777)
CASH RETIREMENTS-LTD (6000)
CASH RETIREMENTS-COMMON STK (15944)
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (13777) (23721) (7777)
CASH BEFORE AUTOMATIC FINANCINGS (4701) 1042 16501 (12837) 1045 2447 (16663) 1051 30528
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED 4701 12837 16663
SHORT-TERM DEBT REPAID (542) (16001) (545) (1947) (551) (30028)
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS 4701 (542) (16001) 12837 (545) (1947) 16663 (551) (30028)
ENDING CASH BALANCE 500 500 500 500 500 500
ENDING BALANCES:
---------------
CASH 500 500 500 500 500 500
TEMP CASH INVESTMENTS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 500 500 500 500 500 500
SHORT TERM DEBT 61109 60567 44566 57403 56858 54911 71573 71023 40994
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD (61109) (60067) (44066) (57403) (56358) (54411) (71573) (70523) (40494)
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTHEAST UTILITIES PARENT CO.
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS (7777) (31108)
CASH RETIREMENTS-LTD (10000) (16000)
CASH RETIREMENTS-COMMON STK (15944)
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING (17777) (63052)
CASH BEFORE AUTOMATIC FINANCINGS (16586) 1154 (2023) (2542)
SHORT-TERM DEBT BORROWED 16586 2023 52810
SHORT-TERM DEBT REPAID (654) (50268)
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS 16586 (654) 2023 2542
ENDING CASH BALANCE 500 () ()
ENDING BALANCES:
---------------
CASH 500
TEMP CASH INVESTMENTS
__ ________ ________ ________ _____
TOTAL CASH BALANCE 500
SHORT TERM DEBT 57581 56927 58950 58950
__ ________ ________ ________ _____
NET CASH + TCI - STD (57581) (56427) (58950) (58950)
</TABLE>
<TABLE>
<CAPTION>
#### NAEC 1997
1Thursday, May 2, 1996 5:20:16 pm
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
BEGINNING CASH BALANCE 27707 36384 44874 37120 36923 45470 7098 15973 23800
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED 592 633 435 592 224 249 2458 2323 113
OTHER REVENUE
INTEREST INCOME 111 143 177 148 147 180 28 62 93
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS FROM ASSOC. COS 14196 12535 12521 13090 13002 13895 13972 13969 14086
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 14899 13311 13133 13830 13373 14324 16458 16354 14292
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL 1844 285 4698 11536 313 304 1844 313 730
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 149 150 146 1468 112 5666 270 273 130
FEDERAL INCOME TAX 621 (3367) (2894) (2828)
STATE INCOME TAX 82
O&M LABOR 1049 1048 1049 1052 1056 1055 2116 2112 1048
O&M NON-LABOR 2344 2447 2446 2447 2454 2465 2461 4938 4927
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 3955 18209 3955
PREFERRED DIVIDEND
COMMON DIVIDEND 7000 7000 7000
MISC DISBURSEMENTS 66 66 66 66 66 66 66 67 67
NUCLEAR DECOMMISSIONING 297 297 297 297 297 297 297 297 297
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 5755 4300 20365 13506 4305 32174 7061 8006 15333
CASH GENERATION BEFORE CONST 9143 9011 (7232) 324 9069 (17851) 9397 8348 (1041)
CONST EXP - LABOR 48 48 48 48 48 48 48 48 48
CONST EXP - NON-LABOR 418 473 473 473 473 473 473 473 473
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 466 521 521 521 521 521 521 521 521
INTERNAL CASH BEFORE FINANCINGS 36384 44874 37120 36923 45470 27098 15973 23800 22237
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 22237 30972 40603 27707
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED (165) 457 5700 13611
OTHER REVENUE
INTEREST INCOME 89 122 160 1460
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS FROM ASSOC. COS 13720 13783 13828 162597
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 13644 14362 19688 177668
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL 411 231 313 22822
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 112 110 4556 13142
FEDERAL INCOME TAX (3462) (11930)
STATE INCOME TAX 82
O&M LABOR 1049 1049 1049 14731
O&M NON-LABOR 2446 2447 2448 34271
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 17304 43422
PREFERRED DIVIDEND
COMMON DIVIDEND 7000 28000
MISC DISBURSEMENTS 67 67 890 1619
NUCLEAR DECOMMISSIONING 297 297 297 3564
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 4388 4208 30401 149804
CASH GENERATION BEFORE CONST 9256 10153 (10713) 27864
CONST EXP - LABOR 48 48 48 579
CONST EXP - NON-LABOR 473 473 473 5624
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 521 521 521 6203
INTERNAL CASH BEFORE FINANCINGS 30972 40603 29368 49368
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:16 pm
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (20000)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (20000)
CASH BEFORE AUTOMATIC FINANCINGS 36384 44874 37120 36923 45470 7098 15973 23800 22237
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 36384 44874 37120 36923 45470 7098 15973 23800 22237
ENDING BALANCES:
---------------
CASH 500 500 500 500 500
TEMP CASH INVESTMENTS 35884 44374 37120 36923 44970 7098 15473 23300 22237
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 36384 44874 37120 36923 45470 7098 15973 23800 22237
SHORT TERM DEBT
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD 36384 44874 37120 36923 45470 7098 15973 23800 22237
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (20000)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING (20000)
CASH BEFORE AUTOMATIC FINANCINGS 30972 40603 29368 29368
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 30972 40603 29368 29368
ENDING BALANCES:
---------------
CASH 500 500
TEMP CASH INVESTMENTS 30472 40103 29368 29368
__ ________ ________ ________ _____
TOTAL CASH BALANCE 30972 40603 29368 29368
SHORT TERM DEBT
__ ________ ________ ________ _____
NET CASH + TCI - STD 30972 40603 29368 29368
</TABLE>
<TABLE>
<CAPTION>
#### HOLY 1997
1Thursday, May 2, 1996 5:20:06 pm
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
BEGINNING CASH BALANCE 5890 5676 6950 6955 6751 7330 6568 6637 6752
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL 543 600 547 579 595 528 615 554 514
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED 24 47 59 62 63 64 65 64 64
OTHER REVENUE 60 60 60 60 60 60 60 60 60
INTEREST INCOME 24 23 26 26 26 27 26 26 26
DIVIDENDS RECEIVED
OTHER RECEIPTS
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 650 730 692 727 744 679 766 705 664
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL 2375 705 1746 1806 1935 1983 1813 2010 1856
NUCLEAR FUEL
PURCHASED POWER (11) (10) (11) (7) (7) (11) (11) (11) (9)
INTERCOMPANY BILLINGS - NUGT (3110) (2843) (2936) (3025) (3536) (2918) (3128) (3097) (2859)
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 496 61 60 502 49 55 500 47 43
FEDERAL INCOME TAX 123 61 38
STATE INCOME TAX 33 17 20
O&M LABOR 335 319 343 334 500 346 352 373 372
O&M NON-LABOR 385 782 743 801 780 1166 808 822 871
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 50 132 207 51 133 208 51 133 208
PREFERRED DIVIDEND
COMMON DIVIDEND 221 221 225
MISC DISBURSEMENTS (5) (5) (5) (5) (5) (5) (5) (5) (5)
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 12 12 12 12 12 12 12 12 12
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 527 (849) 381 626 (140) 1135 392 285 774
CASH GENERATION BEFORE CONST 123 1579 310 102 884 (456) 374 420 (109)
CONST EXP - LABOR 28 28 28 28 28 28 28 28 28
CONST EXP - NON-LABOR 308 277 277 277 277 277 277 277 277
INV NOT INCLUDED IN CONST
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 337 305 305 305 305 305 305 305 305
INTERNAL CASH BEFORE FINANCINGS 5676 6950 6955 6751 7330 6568 6637 6752 6337
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 6337 6203 4709 5890
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL 556 549 535 6715
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED 64 64 64 702
OTHER REVENUE 60 60 60 724
INTEREST INCOME 25 25 19 298
DIVIDENDS RECEIVED
OTHER RECEIPTS
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 706 698 678 8440
CASH DISBURSEMENTS:
FOSSIL FUEL 1611 2612 1133 21585
NUCLEAR FUEL
PURCHASED POWER (8) (11) (12) (118)
INTERCOMPANY BILLINGS - NUGT (2861) (2057) (3188) (35558)
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 514 36 22 2385
FEDERAL INCOME TAX 68 289
STATE INCOME TAX 27 97
O&M LABOR 352 346 373 4346
O&M NON-LABOR 868 820 808 9655
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 51 133 208 1566
PREFERRED DIVIDEND
COMMON DIVIDEND 242 909
MISC DISBURSEMENTS (5) (5) (5) (62)
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 12 12 12 146
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 535 1887 (311) 5242
CASH GENERATION BEFORE CONST 171 (1189) 989 3198
CONST EXP - LABOR 28 28 28 339
CONST EXP - NON-LABOR 277 277 277 3356
INV NOT INCLUDED IN CONST
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 305 305 305 3695
INTERNAL CASH BEFORE FINANCINGS 6203 4709 5393 5393
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:06 pm
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING
CASH BEFORE AUTOMATIC FINANCINGS 5676 6950 6955 6751 7330 6568 6637 6752 6337
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 5676 6950 6955 6751 7330 6568 6637 6752 6337
ENDING BALANCES:
---------------
CASH 500 500 296 500 69 183
TEMP CASH INVESTMENTS 5676 6450 6455 6455 6830 6568 6568 6568 6337
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 5676 6950 6955 6751 7330 6568 6637 6752 6337
SHORT TERM DEBT
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD 5676 6950 6955 6751 7330 6568 6637 6752 6337
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING
CASH BEFORE AUTOMATIC FINANCINGS 6203 4709 5393 5393
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 6203 4709 5393 5393
ENDING BALANCES:
---------------
CASH 500 500
TEMP CASH INVESTMENTS 6203 4709 4893 4893
__ ________ ________ ________ _____
TOTAL CASH BALANCE 6203 4709 5393 5393
SHORT TERM DEBT
__ ________ ________ ________ _____
NET CASH + TCI - STD 6203 4709 5393 5393
</TABLE>
<TABLE>
<CAPTION>
#### RRQ 1997
1Thursday, May 2, 1996 5:20:20 pm
ROCKY RIVER & QUINNEHTUK
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
BEGINNING CASH BALANCE 390 258 354 493 500 500 88
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL 894 906 906 906 902 900 898 927 927
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE
INTEREST INCOME
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS RECEIVED _ ASSOC. COS
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 894 906 906 906 902 900 898 927 927
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 198 200 200 200 199 198 230 230 230
FEDERAL INCOME TAX 11 3 3 3
STATE INCOME TAX 0 2 2 2
O&M LABOR 20 20 21 20 20 20 20 20 20
O&M NON-LABOR 36 46 46 48 46 46 46 46 48
INSURANCE
INTEREST ON SHORT-TERM DEBT 97 97 97 97 96 96 96 97 97
INTEREST ON LONG-TERM DEBT 556 303 281 280 279 304 521 297 276
PREFERRED DIVIDEND
COMMON DIVIDEND
MISC DISBURSEMENTS 5 5 5 5 5 5 5 5 5
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DIBURSEMENTS 911 671 660 655 646 674 918 696 680
CASH GENERATION BEFORE CONST (17) 235 246 252 256 226 (21) 231 247
CONST EXP - LABOR 1 1 1 1 1 1 1 1 1
CONST EXP - NON-LABOR 13 5 5 5 5 5 5 5 5
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 14 5 5 5 5 5 5 5 5
INTERNAL CASH BEFORE FINANCINGS 360 488 595 739 751 721 (26) 226 329
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
ROCKY RIVER & QUINNEHTUK
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 224 364 500 390
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL 924 923 923 10,937
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE
INTEREST INCOME
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS RECEIVED _ ASSOC. COS
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 924 923 923 10,937
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 229 229 231 2,573
FEDERAL INCOME TAX 3 22
STATE INCOME TAX 2 7
O&M LABOR 20 20 21 240
O&M NON-LABOR 46 46 46 547
INSURANCE
INTEREST ON SHORT-TERM DEBT 97 97 97 1,161
INTEREST ON LONG-TERM DEBT 276 275 274 3,923
PREFERRED DIVIDEND
COMMON DIVIDEND
MISC DISBURSEMENTS 5 5 5 60
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ _____
TOTAL OPERATING DIBURSEMENTS 673 672 679 8,534
CASH GENERATION BEFORE CONST 251 251 244 2,403
CONST EXP - LABOR 1 1 1 6
CONST EXP - NON-LABOR 5 5 5 68
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 5 5 5 74
INTERNAL CASH BEFORE FINANCINGS 469 610 739 2,719
</TABLE>
<TABLE>
<CAPTION>
#### RRQ 1997
1Thursday, May 2, 1996 5:20:20 pm
ROCKY RIVER & QUINNEHTUK
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (102) (134) (102) (102) (102) (884) (105) (138) (105)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (102) (134) (102) (102) (102) (884) (105) (138) (105)
CASH BEFORE AUTOMATIC FINANCINGS 258 354 493 638 649 (163) (131) 88 224
AUTOMATIC FINANINGS
SHORT-TERM DEBT BORROWED 163 131
SHORT-TERM DEBT REPAID (138) (149)
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS (138) (149) 163 131
ENDING CASH BALANCE 258 354 493 500 500 () () 88 224
ENDING BALANCES:
---------------
CASH 258 354 493 500 500 88 224
TEMP CASH INVESTMENTS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 258 354 493 500 500 88 224
SHORT TERM DEBT 21,868 21,868 21,868 21,730 21,581 21,744 21,875 21,875 21,875
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD (21,610) (21,514) (21,375) (21,230) (21,081) (21,744) (21,875) (21,788) (21,652) (
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
ROCKY RIVER & QUINNEHTUK
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (105) (105) (105) (2,088)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
__ ________ ________ ________ _____
NET PLANNED FINANCING (105) (105) (105) (2,088)
CASH BEFORE AUTOMATIC FINANCINGS 364 505 634 631
SHORT-TERM DEBT BORROWED 295
SHORT-TERM DEBT REPAID (5) (134) (425)
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS (5) (134) (131)
ENDING CASH BALANCE 364 500 500 500
ENDING BALANCES:
---------------
CASH 364 500 500 500
TEMP CASH INVESTMENTS
__ ________ ________ ________ _____
TOTAL CASH BALANCE 364 500 500 500
SHORT TERM DEBT 21,875 21,871 21,737 21,737
__ ________ ________ ________ _____
NET CASH + TCI - STD ( 21,511) (21,371) (21,237) (21,237)
</TABLE>
<TABLE>
<CAPTION>
### HEC 1997
1Thursday, May 2, 1996 5:20:37 pm
HEC
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
BEGINNING CASH BALANCE 400 400 419 482 489 556 563 630 698
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE
INTEREST INCOME 2 2 2 2 2 2 2 2 2
DIVIDENDS RECEIVED
OTHER RECEIPTS 1,255 1,255 1,255 1,255 1,255 1,255 1,255 1,255 1,255
PAYMENTS RECEIVED _ ASSOC. COS
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 1,257 1,257 1,257 1,257 1,257 1,257 1,257 1,257 1,257
CASH DISBURSEMENTS
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES
FEDERAL INCOME TAX 0 46 46 46
STATE INCOME TAX 5 14 14 14
O&M LABOR
O&M NON-LABOR 1,166 1,166 1,166 1,166 1,166 1,166 1,166 1,166 1,166
INSURANCE
INTEREST ON SHORT-TERM DEBT 3 3 3 3 3 3 3 3 3
INTEREST ON LONG-TERM DEBT
PREFERRED DIVIDEND
COMMON DIVIDEND
MISC DISBURSEMENTS 21 21 21 21 21 21 21 21 21
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SBK II SETTLEMENT
COST OF REMOVAL
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DIBURSEMENTS 1,189 1,189 1,194 1,250 1,189 1,250 1,189 1,189 1,250
CASH GENERATION BEFORE CONST 67 67 62 7 67 7 67 67 7
CONST EXP - LABOR
CONST EXP - NON-LABOR
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES
INTERNAL CASH BEFORE FINANCINGS 467 467 482 489 556 563 630 698 705
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
HEC
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 705 772 839 400
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE
INTEREST INCOME 2 2 2 20
DIVIDENDS RECEIVED
OTHER RECEIPTS 1,255 1,255 1,255 15,060
PAYMENTS RECEIVED _ ASSOC. COS
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 1,257 1,257 1,257 15,080
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES
FEDERAL INCOME TAX 46 184
STATE INCOME TAX 14 60
O&M LABOR
O&M NON-LABOR 1,166 1,166 1,166 13,992
INSURANCE
INTEREST ON SHORT-TERM DEBT 3 3 3 32
INTEREST ON LONG-TERM DEBT
PREFERRED DIVIDEND
COMMON DIVIDEND
MISC DISBURSEMENTS 21 21 21 250
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SBK II SETTLEMENT
COST OF REMOVAL
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ _____
TOTAL OPERATING DIBURSEMENTS 1,189 1,189 1,250 14,519
CASH GENERATION BEFORE CONST 67 67 7 561
CONST EXP - LABOR
CONST EXP - NON-LABOR
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES
INTERNAL CASH BEFORE FINANCINGS 772 839 846 961
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:37 pm
HEC
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING
CASH BEFORE AUTOMATIC FINANCINGS 467 467 482 489 556 563 630 698 705
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID (67) (48)
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS (67) (48)
ENDING CASH BALANCE 400 419 482 489 556 563 630 698 705
ENDING BALANCES:
---------------
CASH 400 400 400 400 400 400 400 400 400
TEMP CASH INVESTMENTS 19 82 89 156 163 230 298 305
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 400 419 482 489 556 563 630 698 705
SHORT TERM DEBT 48
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD 352 419 482 489 556 563 630 698 705
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
HEC
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
__ ________ ________ ________ _____
NET PLANNED FINANCING
CASH BEFORE AUTOMATIC FINANCINGS 772 839 846 961
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID (115)
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS (115)
ENDING CASH BALANCE 772 839 846 846
ENDING BALANCES:
---------------
CASH 400 400 400 400
TEMP CASH INVESTMENTS 372 439 446 446
__ ________ ________ ________ _____
TOTAL CASH BALANCE 772 839 846 846
SHORT TERM DEBT
__ ________ ________ ________ _____
NET CASH + TCI - STD 772 839 846 846
</TABLE>
<TABLE>
<CAPTION>
### NNEC 1997
1Thursday, May 2, 1996 5:20:28 pm
NORTHEAST NUCLEAR ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
BEGINNING CASH BALANCE 28,763 29,007 28,913 28,829 28,921 29,387 28,971 29,444 29,307
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL 32,617 28,818 34,135 44,130 47,780 44,397 33,879 28,045 27,923
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE
INTEREST INCOME 114 114 114 114 114 115 115 116 116
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS RECEIVED _ ASSOC. COS
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 32,731 28,932 34,249 44,244 47,894 44,513 33,994 28,160 28,038
CASH DISBURSEMENTS
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 436 1,778 1,164 1,202 972 979 1,121 1,520 961
FEDERAL INCOME TAX 8 292 291 293
STATE INCOME TAX 40 88 88 89
O&M LABOR 7,820 8,592 12,159 13,791 13,868 10,296 7,969 7,773 8,052
O&M NON-LABOR 23,597 18,247 20,048 28,371 32,179 32,360 24,023 18,594 18,138
INSURANCE
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 145 144 144 144 144 144 143 143 143
PREFERRED DIVIDEND
COMMON DIVIDEND 504 508 510
MISC DISBURSEMENTS 228 231 231 231 231 231 232 232 233
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DIBURSEMENTS 32,226 28,993 34,299 44,119 47,394 44,895 33,489 28,263 28,418
CASH GENERATION BEFORE CONST 505 (60) (50) 125 500 (383) 505 (103) (380)
CONST EXP - LABOR 0 0 0 0 0 0 0 0 0
CONST EXP - NON-LABOR 228 0 0 0 0 0 0 0 0
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 228 0 0 0 0 0 0 0 0
INTERNAL CASH BEFORE FINANCINGS 29,040 28,946 28,862 28,954 29,420 29,005 29,477 29,340 28,927
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTHEAST NUCLEAR ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 28,894 29,375 29,850 28,763
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL 28,447 31,986 37,384 419,541
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE
INTEREST INCOME 115 115 117 1,378
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS RECEIVED _ ASSOC. COS
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 28,562 32,102 37,502 420,920
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 897 779 736 12,546
FEDERAL INCOME TAX 292 1,175
STATE INCOME TAX 89 394
O&M LABOR 7,988 11,800 8,345 118,453
O&M NON-LABOR 18,787 18,639 27,532 280,515
INSURANCE
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 143 143 142 1,723
PREFERRED DIVIDEND
COMMON DIVIDEND 512 2,034
MISC DISBURSEMENTS 233 232 232 2,776
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ _____
TOTAL OPERATING DIBURSEMENTS 28,048 31,593 37,880 419,616
CASH GENERATION BEFORE CONST 514 509 (379) 1,303
CONST EXP - LABOR 0 0 0 0
CONST EXP - NON-LABOR 0 0 0 231
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 0 0 0 231
INTERNAL CASH BEFORE FINANCINGS 29,408 29,884 29,471 29,836
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:28 pm
NORTHEAST NUCLEAR ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (33) (33) (33) (33) (33) (33) (33) (33) (33)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (33) (33) (33) (33) (33) (33) (33) (33) (33)
CASH BEFORE AUTOMATIC FINANCINGS 29,007 28,913 28,829 28,921 29,387 28,971 29,444 29,307 28,894
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 29,007 28,913 28,829 28,921 29,387 28,971 29,444 29,307 28,894
ENDING BALANCES:
---------------
CASH 500 406 323 414 500 84 500 364
TEMP CASH INVESTMENTS 28,507 28,507 28,507 28,507 28,887 28,887 28,944 28,944 28,894
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 29,007 28,913 28,829 28,921 29,387 28,971 29,444 29,307 28,894
SHORT TERM DEBT
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD 29,007 28,913 28,829 28,921 29,387 28,971 29,444 29,307 28,894
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTHEAST NUCLEAR ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (33) (33) (33) (397)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
__ ________ ________ ________ _____
NET PLANNED FINANCING (33) (33) (33) (397)
CASH BEFORE AUTOMATIC FINANCINGS 29,375 29,850 29,438 29,438
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 29,375 29,850 29,438 29,438
ENDING BALANCES:
---------------
CASH 481 500 88 88
TEMP CASH INVESTMENTS 28,894 29,350 29,350 29,350
__ ________ ________ ________ _____
TOTAL CASH BALANCE 29,375 29,850 29,438 29,438
SHORT TERM DEBT
__ ________ ________ ________ _____
NET CASH + TCI - STD 29,375 29,850 29,438 29,438
</TABLE>
### NUPARENT 1998
<TABLE>
<CAPTION>
NORTHEAST UTILITIES PARENT CO. EXHIBIT H.1c
PROJECTED MONTH ENDING SHORT-TERM DEBT LEVEL
(THOUSANDS OF DOLLARS)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998
NU PARENT :
ENDING SHORT-TERM DEB(a) 64,927 64,324 43,389 55,890 55,214 32,139 48,375 47,634 13,759 29,907 29,050 29,456
CONTINGENCIES: (b) 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
(c) 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
(d) 26,000 26,000 26,000 26,000 26,000 26,000 26,000 26,000 26,000 26,000 26,000 26,000
-----------------------------------------------------------------------------------------------------------
135,927 135,324 114,389 126,890 126,214 103,139 119,375 118,634 84,759 100,907 100,050 100,456
NAEC :
ENDING SHORT-TERM DEB(a) (47,938) (64,501) (67,697) (78,779) (95,266) (57,819) (75,262) (92,794) (94,525)(111,583)(128,822)(113,508)
CONTINGENCIES: (b) 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
(e) 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000
-----------------------------------------------------------------------------------------------------------
(7,938) (24,501) (27,697) (38,779) (55,266) (17,819) (35,262) (52,794) (54,525) (71,583) (88,822) (73,508)
HWP :
ENDING SHORT-TERM DEB(a) (4,603) (6,472) (6,565) (6,114) (6,003) (5,811) (6,106) (6,445) (6,189) (4,356) (5,476) (5,704)
CONTINGENCIES: (f) 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000
-----------------------------------------------------------------------------------------------------------
6,397 4,528 4,435 4,886 4,997 5,189 4,894 4,555 4,811 6,644 5,524 5,296
RR & QUINN :
ENDING SHORT-TERM DEB(a) 21,343 21,262 21,129 21,008 20,874 21,625 21,715 21,643 21,532 21,407 21,283 21,173
CONTINGENCIES: (b) 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
-----------------------------------------------------------------------------------------------------------
24,343 24,262 24,129 24,008 23,874 24,625 24,715 24,643 24,532 24,407 24,283 24,173
HEC INC. :
ENDING SHORT-TERM DEB(a) (913) (980) (1,041) (1,048) (1,115) (1,123) (1,190) (1,257) (1,264) (1,331) (1,398) (1,405)
CONTINGENCIES: (b) 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
-----------------------------------------------------------------------------------------------------------
2,087 2,020 1,959 1,952 1,885 1,877 1,810 1,743 1,736 1,669 1,602 1,595
NNECO :
ENDING SHORT-TERM DEB(a) (29,919) (29,780) (29,702) (29,797) (30,269) (29,850) (30,328) (30,165) (29,744) (30,226) (30,702) (30,284)
CONTINGENCIES: (b) 29,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000
-----------------------------------------------------------------------------------------------------------
(919) (780) (702) (797) (1,269) (850) (1,328) (1,165) (744) (1,226) (1,702) (1,284)
TOTAL NU PARENT :
ENDING SHORT-TERM DEB(a) 2,897 (16,147) (40,487) (38,840) (56,565) (40,839) (42,796) (61,384) (96,431) (96,182)(116,065)(100,272)
CONTINGENCIES: (b) 157,000 157,000 157,000 157,000 157,000 157,000 157,000 157,000 157,000 157,000 157,000 157,000
-----------------------------------------------------------------------------------------------------------
159,897 140,853 116,513 118,160 100,435 116,161 114,204 95,616 60,569 60,818 40,935 56,728
</TABLE>
<TABLE>
<S> <C>
(a) Short-term debt levels based on the Company's Receipt and Disbursements Forecast (attached).
(b) Contingency based on an estimate of average monthly variances of actual high and low cash balances between June 1995-June 1996.
(c) Contingency assumes additional investments by Charter Oak Energy not contained in the forecast, estimated to be $25 million.
(d) Contingency assumes additional investments in telecommunication or other diversification projects not contained in the
forecast, estimated to be $26 million.
(e) Includes an estimated $30 million contingency to refinance the NAEC bank term loan.
(f) HWP has been in cash over the past year, however a contingency of $11 million was assumed to arrive at HWP's current and
proposed short-term debt limit of $5 million.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
### NUPARENT 1998
1Thursday, May 2, 1996 5:20:41 pm
NORTHEAST UTILITIES PARENT CO.
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
BEGINNING CASH BALANCE 500 500 500 500 500
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ESOP RECEIPTS 1710 1720 1731 1741 1752 1762 1773 1784 1795
OTHER REVENUE
INTEREST INCOME
DIVIDENDS RECEIVED 71490 71499 71500
OTHER RECEIPTS (1) (1) (1) (1) (1) (1) (1) (1) (1)
PAYMENTS FROM ASSOC. COS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 1709 1719 73220 1740 1751 73260 1772 1783 73294
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES
FEDERAL INCOME TAX (3791) (546) (6667)
STATE INCOME TAX
O&M LABOR 247 247 247 247 247 247 247 247 247
O&M NON-LABOR 1511 576 576 576 576 576 576 576 576
INTEREST ON SHORT-TERM DEBT 266 293 293 198 252 252 147 218 217
INTEREST ON LONG-TERM DEBT 1927 6349 1676
PREFERRED DIVIDEND
COMMON DIVIDEND 5661 39692 17011 39756 17038 39820
MISC DISBURSEMENTS
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 7686 1116 42735 14241 1075 46634 18009 1041 35869
CASH GENERATION BEFORE CONST (5977) 603 30485 (12501) 676 26626 (16237) 742 37425
CONST EXP - LABOR
CONST EXP - NON-LABOR
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES
INTERNAL CASH BEFORE FINANCINGS (5977) 603 30985 (12001) 676 27126 (15737) 742 37925
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTHEAST UTILITIES PARENT CO.
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 500 500
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ESOP RECEIPTS 1806 1817 1828 21219
OTHER REVENUE
INTEREST INCOME
DIVIDENDS RECEIVED 71501 285990
OTHER RECEIPTS (1) (1) (1) (12)
PAYMENTS FROM ASSOC. COS
__ ________ ________ ________ _____
TOTAL RECEIPTS 1805 1816 73328 307197
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES
FEDERAL INCOME TAX 597 (10408)
STATE INCOME TAX
O&M LABOR 247 247 247 2965
O&M NON-LABOR 576 576 576 7846
INTEREST ON SHORT-TERM DEBT 64 135 133 2471
INTEREST ON LONG-TERM DEBT 6349 16302
PREFERRED DIVIDEND
COMMON DIVIDEND 17066 51282 227327
MISC DISBURSEMENTS
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 17953 958 59185 246503
CASH GENERATION BEFORE CONST (16148) 858 14144 60694
CONST EXP - LABOR
CONST EXP - NON-LABOR
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES
INTERNAL CASH BEFORE FINANCINGS (15648) 858 14644 60694
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:41 pm
NORTHEAST UTILITIES PARENT CO.
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS (3550) (3550) (3550)
CASH RETIREMENTS-LTD (6000)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (9550) (3550) (3550)
CASH BEFORE AUTOMATIC FINANCINGS (5977) 603 21435 (12001) 676 23576 (15737) 742 34375
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED 5977 12001 15737
SHORT-TERM DEBT REPAID (103) (20935) (176) (23076) (242) (33875)
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS 5977 (103) (20935) 12001 (176) (23076) 15737 (242) (33875)
ENDING CASH BALANCE 500 500 500 500 500 500
ENDING BALANCES:
---------------
CASH 500 500 500 500 500 500
TEMP CASH INVESTMENTS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 500 500 500 500 500 500
SHORT TERM DEBT 64927 64824 43889 55890 55714 32639 48375 48134 14259
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD (64927) (64324) (43389) (55890) (55214) (32139) (48375) (47634) (13759)
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTHEAST UTILITIES PARENT CO.
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS (3550) (14200)
CASH RETIREMENTS-LTD (11000) (17000)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING (14550) (31200)
CASH BEFORE AUTOMATIC FINANCINGS (15648) 858 94 29494
SHORT-TERM DEBT BORROWED 15648 49363
SHORT-TERM DEBT REPAID (358) (78763)
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS 15648 (358) (29400)
ENDING CASH BALANCE 500 94 94
ENDING BALANCES:
---------------
CASH 500 94 94
TEMP CASH INVESTMENTS
__ ________ ________ ________ _____
TOTAL CASH BALANCE 500 94 94
SHORT TERM DEBT 29907 29550 29550 29550
__ ________ ________ ________ _____
NET CASH + TCI - STD (29907) (29050) (29456) (29456)
</TABLE>
<TABLE>
<CAPTION>
#### NAEC 1998
1Thursday, May 2, 1996 5:20:16 pm
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
BEGINNING CASH BALANCE 29368 47938 64501 67697 78779 95266 57819 75262 92794
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED 9984 9798 9591 9496 9151 9037 9157 9242 9225
OTHER REVENUE
INTEREST INCOME 119 193 260 273 318 385 235 304 375
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS FROM ASSOC. COS 14196 12535 12521 13090 13002 13895 13972 13969 14086
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 24299 22526 22372 22859 22471 23317 23364 23515 23686
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL 278 304 332 268 332 322 278 332 322
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 144 143 162 1484 135 5843 126 134 125
FEDERAL INCOME TAX 2241 3642 3912 4042
STATE INCOME TAX (31) 867 867 995
O&M LABOR 1132 1132 1132 1132 1132 1132 1132 1132 1132
O&M NON-LABOR 2447 2642 2642 2642 2642 2642 2642 2642 2642
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 3955 17304 3955
PREFERRED DIVIDEND
COMMON DIVIDEND 7000 7000 7000
MISC DISBURSEMENTS 890 890 891 891 891 891 891 891 891
NUCLEAR DECOMMISSIONING 308 308 308 308 308 308 308 308 308
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 5206 5426 18639 11240 5447 40227 5384 5446 21419
CASH GENERATION BEFORE CONST 19093 17100 3733 11619 17024 (16910) 17980 18069 2268
CONST EXP - LABOR 50 50 50 50 50 50 50 50 50
CONST EXP - NON-LABOR 473 487 487 487 487 487 487 487 487
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 523 537 537 537 537 537 537 537 537
INTERNAL CASH BEFORE FINANCINGS 47938 64501 67697 78779 95266 77819 75262 92794 94525
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 94525 111583 128822 29368
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED 9082 8945 10209 112917
OTHER REVENUE
INTEREST INCOME 382 452 522 3820
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS FROM ASSOC. COS 13720 13783 13828 162597
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 23184 23180 24559 279334
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL 501 322 332 3923
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 108 102 4729 13236
FEDERAL INCOME TAX 4825 18662
STATE INCOME TAX 1071 3769
O&M LABOR 1132 1132 1132 13585
O&M NON-LABOR 2641 2641 2641 31505
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 16399 41612
PREFERRED DIVIDEND
COMMON DIVIDEND 7000 28000
MISC DISBURSEMENTS 892 892 892 10693
NUCLEAR DECOMMISSIONING 308 308 308 3696
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 5588 5404 39336 168763
CASH GENERATION BEFORE CONST 17596 17776 (14777) 110571
CONST EXP - LABOR 50 50 50 596
CONST EXP - NON-LABOR 487 487 487 5836
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 537 537 537 6432
INTERNAL CASH BEFORE FINANCINGS 111583 128822 113508 133508
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:16 pm
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (20000)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (20000)
CASH BEFORE AUTOMATIC FINANCINGS 47938 64501 67697 78779 95266 57819 75262 92794 94525
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 47938 64501 67697 78779 95266 57819 75262 92794 94525
ENDING BALANCES:
---------------
CASH 500 500 500 500 500 500 500 500
TEMP CASH INVESTMENTS 47438 64001 67197 78279 94766 57819 74762 92294 94025
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 47938 64501 67697 78779 95266 57819 75262 92794 94525
SHORT TERM DEBT
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD 47938 64501 67697 78779 95266 57819 75262 92794 94525
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (20000)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING (20000)
CASH BEFORE AUTOMATIC FINANCINGS 111583 128822 113508 113508
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 111583 128822 113508 113508
ENDING BALANCES:
---------------
CASH 500 500
TEMP CASH INVESTMENTS 111083 128322 113508 113508
__ ________ ________ ________ _____
TOTAL CASH BALANCE 111583 128822 113508 113508
SHORT TERM DEBT
__ ________ ________ ________ _____
NET CASH + TCI - STD 111583 128822 113508 113508
</TABLE>
<TABLE>
<CAPTION>
#### HOLY 1998
1Thursday, May 2, 1996 5:20:06 pm
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
BEGINNING CASH BALANCE 5393 4603 6472 6565 6114 6003 5811 6106 6445
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL 552 610 556 589 605 537 625 563 523
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED 58 52 50 49 48 48 48 48 48
OTHER REVENUE 60 64 64 64 64 64 64 64 64
INTEREST INCOME 20 19 24 25 25 24 24 24 24
DIVIDENDS RECEIVED
OTHER RECEIPTS
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 691 745 694 726 742 674 761 698 659
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL 2736 372 1830 1905 2176 1641 1689 1951 1926
NUCLEAR FUEL
PURCHASED POWER (12) (11) (11) (8) (8) (11) (11) (11) (9)
INTERCOMPANY BILLINGS - NUGT (3381) (3164) (3230) (3007) (2984) (3005) (3270) (3247) (3240)
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 520 62 62 526 50 57 523 48 45
FEDERAL INCOME TAX 13 178 192 201
STATE INCOME TAX 48 48 48
O&M LABOR 397 397 397 397 397 397 397 397 397
O&M NON-LABOR 870 926 926 926 926 926 926 926 926
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 51 134 210 52 135 211 52 135 211
PREFERRED DIVIDEND
COMMON DIVIDEND 242 250 250
MISC DISBURSEMENTS (5) (5) (5) (5) (5) (5) (4) (4) (4)
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 12 12 12 12 12 12 12 12 12
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 1189 (1276) 448 1025 700 713 313 207 762
CASH GENERATION BEFORE CONST (499) 2021 246 (298) 41 (39) 448 491 (103)
CONST EXP - LABOR 14 14 14 14 14 14 14 14 14
CONST EXP - NON-LABOR 277 138 138 138 138 138 138 138 138
INV NOT INCLUDED IN CONST
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 291 153 153 153 153 153 153 153 153
INTERNAL CASH BEFORE FINANCINGS 4603 6472 6565 6114 6003 5811 6106 6445 6189
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 6189 4356 5476 5393
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL 566 558 544 6828
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED 48 48 48 592
OTHER REVENUE 64 64 64 762
INTEREST INCOME 24 18 20 270
DIVIDENDS RECEIVED
OTHER RECEIPTS
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 702 687 676 8452
CASH DISBURSEMENTS:
FOSSIL FUEL 1927 650 1622 20425
NUCLEAR FUEL
PURCHASED POWER (8) (12) (12) (125)
INTERCOMPANY BILLINGS - NUGT (1459) (2726) (3309) (36021)
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 540 37 22 2493
FEDERAL INCOME TAX 134 718
STATE INCOME TAX 46 190
O&M LABOR 397 397 397 4763
O&M NON-LABOR 926 926 926 11057
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 52 135 211 1588
PREFERRED DIVIDEND
COMMON DIVIDEND 250 992
MISC DISBURSEMENTS (4) (4) (4) (54)
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 12 12 12 146
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 2382 (585) 295 6172
CASH GENERATION BEFORE CONST (1681) 1272 381 2280
CONST EXP - LABOR 14 14 14 169
CONST EXP - NON-LABOR 138 138 138 1799
INV NOT INCLUDED IN CONST
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 153 153 153 1969
INTERNAL CASH BEFORE FINANCINGS 4356 5476 5704 5704
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:06 pm
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING
CASH BEFORE AUTOMATIC FINANCINGS 4603 6472 6565 6114 6003 5811 6106 6445 6189
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 4603 6472 6565 6114 6003 5811 6106 6445 6189
ENDING BALANCES:
---------------
CASH 500 500 49 295 500 244
TEMP CASH INVESTMENTS 4603 5972 6065 6065 6003 5811 5811 5945 5945
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 4603 6472 6565 6114 6003 5811 6106 6445 6189
SHORT TERM DEBT
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD 4603 6472 6565 6114 6003 5811 6106 6445 6189
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING
CASH BEFORE AUTOMATIC FINANCINGS 4356 5476 5704 5704
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 4356 5476 5704 5704
ENDING BALANCES:
---------------
CASH 500 500 500
TEMP CASH INVESTMENTS 4356 4976 5204 5204
__ ________ ________ ________ _____
TOTAL CASH BALANCE 4356 5476 5704 5704
SHORT TERM DEBT
__ ________ ________ ________ _____
NET CASH + TCI - STD 4356 5476 5704 5704
</TABLE>
<TABLE>
<CAPTION>
#### RRQ 1998
1Thursday, May 2, 1996 5:20:20 pm
ROCKY RIVER & QUINNEHTUK
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
BEGINNING CASH BALANCE 500 394 475 500 500 500 72
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL 927 926 925 924 922 920 917 921 921
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE
INTEREST INCOME
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS RECEIVED _ ASSOC. COS
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 927 926 925 924 922 920 917 921 921
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 228 230 230 230 230 230 237 236 237
FEDERAL INCOME TAX 11 11 11
STATE INCOME TAX 1 3 3 3
O&M LABOR 21 21 21 21 21 21 21 21 21
O&M NON-LABOR 48 48 48 48 48 48 48 48 48
INSURANCE
INTEREST ON SHORT-TERM DEBT 98 98 98 98 97 97 98 98 98
INTEREST ON LONG-TERM DEBT 516 292 272 271 270 297 478 285 267
PREFERRED DIVIDEND
COMMON DIVIDEND
MISC DISBURSEMENTS 5 5 5 5 5 5 5 5 5
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DIBURSEMENTS 917 694 675 687 671 711 887 694 689
CASH GENERATION BEFORE CONST 10 232 250 237 251 209 30 227 231
CONST EXP - LABOR 1 1 1 1 1 1 1 1 1
CONST EXP - NON-LABOR 5 5 5 5 5 5 5 5 5
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 5 5 5 5 5 5 5 5 5
INTERNAL CASH BEFORE FINANCINGS 505 620 720 731 745 704 25 222 298
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
ROCKY RIVER & QUINNEHTUK
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 183 308 432 500
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL 919 918 917 11,058
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE
INTEREST INCOME
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS RECEIVED _ ASSOC. COS
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 919 918 917 11,058
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 236 236 237 2,798
FEDERAL INCOME TAX 11 45
STATE INCOME TAX 3 13
O&M LABOR 21 21 21 248
O&M NON-LABOR 48 48 48 580
INSURANCE
INTEREST ON SHORT-TERM DEBT 98 98 98 1,174
INTEREST ON LONG-TERM DEBT 266 265 264 3,743
PREFERRED DIVIDEND
COMMON DIVIDEND
MISC DISBURSEMENTS 5 5 5 60
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ _____
TOTAL OPERATING DIBURSEMENTS 674 673 687 8,660
CASH GENERATION BEFORE CONST 245 245 230 2,398
CONST EXP - LABOR 1 1 1 6
CONST EXP - NON-LABOR 5 5 5 60
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 5 5 5 66
INTERNAL CASH BEFORE FINANCINGS 422 547 657 2,832
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:20 pm
ROCKY RIVER & QUINNEHTUK
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (111) (146) (111) (111) (111) (955) (115) (150) (115)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (111) (146) (111) (111) (111) (955) (115) (150) (115)
CASH BEFORE AUTOMATIC FINANCINGS 394 475 609 620 634 (251) (90) 72 183
AUTOMATIC FINANINGS
SHORT-TERM DEBT BORROWED 251 90
SHORT-TERM DEBT REPAID (109) (120) (134)
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS (109) (120) (134) 251 90
ENDING CASH BALANCE 394 475 500 500 500 () () 72 183
ENDING BALANCES:
---------------
CASH 394 475 500 500 500 72 183
TEMP CASH INVESTMENTS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 394 475 500 500 500 72 183
SHORT TERM DEBT 21,737 21,737 21,629 21,508 21,374 21,625 21,715 21,715 21,715
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD (21,343) (21,262) (21,129) (21,008) (20,874) (21,625) (21,715) (21,643) (21,532) (
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
ROCKY RIVER & QUINNEHTUK
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (115) (115) (115) (2,269)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
__ ________ ________ ________ _____
NET PLANNED FINANCING (115) (115) (115) (2,269)
CASH BEFORE AUTOMATIC FINANCINGS 308 432 542 564
SHORT-TERM DEBT BORROWED 341
SHORT-TERM DEBT REPAID (42) (405)
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS (42) (64)
ENDING CASH BALANCE 308 432 500 500
ENDING BALANCES:
---------------
CASH 308 432 500 500
TEMP CASH INVESTMENTS
__ ________ ________ ________ _____
TOTAL CASH BALANCE 308 432 500 500
SHORT TERM DEBT 21,715 21,715 21,673 21,673
__ ________ ________ ________ _____
NET CASH + TCI - STD ( 21,407) (21,283) (21,173) (21,173)
</TABLE>
<TABLE>
<CAPTION>
### HEC 1998
1Thursday, May 2, 1996 5:20:37 pm
HEC
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
BEGINNING CASH BALANCE 846 913 980 1,041 1,048 1,115 1,123 1,190 1,257
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE
INTEREST INCOME 2 2 2 2 2 2 2 2 2
DIVIDENDS RECEIVED
OTHER RECEIPTS 1,325 1,325 1,325 1,325 1,325 1,325 1,325 1,325 1,325
PAYMENTS RECEIVED _ ASSOC. COS
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 1,327 1,327 1,327 1,327 1,327 1,327 1,327 1,327 1,327
CASH DISBURSEMENTS
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES
FEDERAL INCOME TAX 47 47 47
STATE INCOME TAX 6 13 13 13
O&M LABOR
O&M NON-LABOR 1,234 1,234 1,234 1,234 1,234 1,234 1,234 1,234 1,234
INSURANCE
INTEREST ON SHORT-TERM DEBT 4 4 4 4 4 4 4 4 4
INTEREST ON LONG-TERM DEBT
PREFERRED DIVIDEND
COMMON DIVIDEND
MISC DISBURSEMENTS 22 22 22 22 22 22 22 22 22
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SBK II SETTLEMENT
COST OF REMOVAL
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DIBURSEMENTS 1,260 1,260 1,266 1,320 1,260 1,320 1,260 1,260 1,320
CASH GENERATION BEFORE CONST 67 67 61 7 67 7 67 67 7
CONST EXP - LABOR
CONST EXP - NON-LABOR
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES
INTERNAL CASH BEFORE FINANCINGS 913 980 1,041 1,048 1,115 1,123 1,190 1,257 1,264
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
HEC
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 1,264 1,331 1,398 846
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE
INTEREST INCOME 2 2 2 20
DIVIDENDS RECEIVED
OTHER RECEIPTS 1,325 1,325 1,325 15,900
PAYMENTS RECEIVED _ ASSOC. COS
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 1,327 1,327 1,327 15,920
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES
FEDERAL INCOME TAX 47 189
STATE INCOME TAX 13 57
O&M LABOR
O&M NON-LABOR 1,234 1,234 1,234 14,808
INSURANCE
INTEREST ON SHORT-TERM DEBT 4 4 4 47
INTEREST ON LONG-TERM DEBT
PREFERRED DIVIDEND
COMMON DIVIDEND
MISC DISBURSEMENTS 22 22 22 260
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SBK II SETTLEMENT
COST OF REMOVAL
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ _____
TOTAL OPERATING DIBURSEMENTS 1,260 1,260 1,320 15,361
CASH GENERATION BEFORE CONST 67 67 7 559
CONST EXP - LABOR
CONST EXP - NON-LABOR
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES
INTERNAL CASH BEFORE FINANCINGS 1,331 1,398 1,405 1,405
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:37 pm
HEC
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING
CASH BEFORE AUTOMATIC FINANCINGS 913 980 1,041 1,048 1,115 1,123 1,190 1,257 1,264
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 913 980 1,041 1,048 1,115 1,123 1,190 1,257 1,264
ENDING BALANCES:
---------------
CASH 400 400 400 400 400 400 400 400 400
TEMP CASH INVESTMENTS 513 580 641 648 715 723 790 857 864
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 913 980 1,041 1,048 1,115 1,123 1,190 1,257 1,264
SHORT TERM DEBT
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD 913 980 1,041 1,048 1,115 1,123 1,190 1,257 1,264
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
HEC
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
__ ________ ________ ________ _____
NET PLANNED FINANCING
CASH BEFORE AUTOMATIC FINANCINGS 1,331 1,398 1,405 1,405
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 1,331 1,398 1,405 1,405
ENDING BALANCES:
---------------
CASH 400 400 400 400
TEMP CASH INVESTMENTS 931 998 1,005 1,005
__ ________ ________ ________ _____
TOTAL CASH BALANCE 1,331 1,398 1,405 1,405
SHORT TERM DEBT
__ ________ ________ ________ _____
NET CASH + TCI - STD 1,331 1,398 1,405 1,405
</TABLE>
<TABLE>
<CAPTION>
### NNEC 1998
1Thursday, May 2, 1996 5:20:28 pm
NORTHEAST NUCLEAR ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
BEGINNING CASH BALANCE 29,438 29,919 29,780 29,702 29,797 30,269 29,850 30,328 30,165
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL 28,919 29,444 29,388 29,424 29,178 29,187 29,336 29,115 29,172
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE
INTEREST INCOME 119 120 120 120 120 121 121 121 121
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS RECEIVED _ ASSOC. COS
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 29,038 29,564 29,508 29,544 29,298 29,308 29,457 29,236 29,294
CASH DISBURSEMENTS
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 449 1,882 1,212 1,245 1,005 1,011 1,157 1,577 993
FEDERAL INCOME TAX 0 302 300 303
STATE INCOME TAX 40 81 81 81
O&M LABOR 8,221 8,221 8,221 8,221 8,221 8,221 8,221 8,221 8,221
O&M NON-LABOR 19,471 19,181 19,181 19,181 19,181 19,181 19,181 19,181 19,181
INSURANCE
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 142 142 142 142 141 141 141 141 141
PREFERRED DIVIDEND
COMMON DIVIDEND 513 515 516
MISC DISBURSEMENTS 238 240 241 241 241 241 242 242 242
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DIBURSEMENTS 28,521 29,667 29,549 29,412 28,789 29,691 28,942 29,362 29,678
CASH GENERATION BEFORE CONST 517 (103) (41) 132 509 (383) 515 (126) (384)
CONST EXP - LABOR 0 0 0 0 0 0 0 0 0
CONST EXP - NON-LABOR 0 1 1 1 1 1 1 1 1
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 0 1 1 1 1 1 1 1 1
INTERNAL CASH BEFORE FINANCINGS 29,955 29,815 29,737 29,832 30,305 29,885 30,363 30,201 29,780
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTHEAST NUCLEAR ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 29,744 30,226 30,702 29,438
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL 29,108 28,981 28,939 350,192
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE
INTEREST INCOME 121 121 123 1,447
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS RECEIVED _ ASSOC. COS
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 29,229 29,102 29,062 351,640
FOSSIL FUEL
NUCLEAR FUEL
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 926 805 760 13,022
FEDERAL INCOME TAX 301 1,206
STATE INCOME TAX 81 365
O&M LABOR 8,221 8,221 8,221 98,647
O&M NON-LABOR 19,181 19,181 19,181 230,467
INSURANCE
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 140 140 140 1,693
PREFERRED DIVIDEND
COMMON DIVIDEND 517 2,061
MISC DISBURSEMENTS 242 242 242 2,894
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ _____
TOTAL OPERATING DIBURSEMENTS 28,711 28,589 29,444 350,355
CASH GENERATION BEFORE CONST 518 513 (382) 1,285
CONST EXP - LABOR 0 0 0 1
CONST EXP - NON-LABOR 1 1 1 11
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 1 1 1 12
INTERNAL CASH BEFORE FINANCINGS 30,262 30,738 30,320 30,711
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:28 pm
NORTHEAST NUCLEAR ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (36) (36) (36) (36) (36) (36) (36) (36) (36)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (36) (36) (36) (36) (36) (36) (36) (36) (36)
CASH BEFORE AUTOMATIC FINANCINGS 29,919 29,780 29,702 29,797 30,269 29,850 30,328 30,165 29,744
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 29,919 29,780 29,702 29,797 30,269 29,850 30,328 30,165 29,744
ENDING BALANCES:
---------------
CASH 500 360 283 378 500 80 500 338
TEMP CASH INVESTMENTS 29,419 29,419 29,419 29,419 29,769 29,769 29,828 29,828 29,744
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 29,919 29,780 29,702 29,797 30,269 29,850 30,328 30,165 29,744
SHORT TERM DEBT
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD 29,919 29,780 29,702 29,797 30,269 29,850 30,328 30,165 29,744
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTHEAST NUCLEAR ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (36) (36) (36) (427)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
__ ________ ________ ________ _____
NET PLANNED FINANCING (36) (36) (36) (427)
CASH BEFORE AUTOMATIC FINANCINGS 30,226 30,702 30,284 30,284
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 30,226 30,702 30,284 30,284
ENDING BALANCES:
---------------
CASH 482 500 82 82
TEMP CASH INVESTMENTS 29,744 30,202 30,202 30,202
__ ________ ________ ________ _____
TOTAL CASH BALANCE 30,226 30,702 30,284 30,284
SHORT TERM DEBT
__ ________ ________ ________ _____
NET CASH + TCI - STD 30,226 30,702 30,284 30,284
</TABLE>
<TABLE>
<CAPTION>
CONNECTICUT LIGHT & POWER EXHIBIT H.2
PROJECTED MONTH ENDING SHORT-TERM DEBT LEVEL
(THOUSANDS OF DOLLARS)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1996 1996 1996 1996 1996 1996 1996 1996 1996 1996 1996 1996
ENDING SHORT-TERM DEBT 60,871 (4,230) (36,505) 25,077 (76,717) (34,512) (3,224) (15,829) (937) 25,934 (3,763) 26,942
CONTINGENCIES:
(b) 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000
(c) 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000
(d) (160,000)(160,000)(160,000)(160,000)(160,000)(160,000)(160,000)
------------------------------------------------------------------------------------------------------------
305,871 240,770 208,495 270,077 168,283 50,488 81,776 69,171 84,063 110,934 81,237 111,942
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1997 1997 1997 1997 1997 1997 1997 1997 1997 1997 1997 1997
ENDING SHORT-TERM DEBT 53,592 32,505 21,843 273,854 246,544 278,220 286,168 253,949 249,152 235,779 171,824 244,325
CONTINGENCIES:
(b) 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000
(c) 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000
(d) (160,000)(160,000)(160,000)(160,000)(160,000)(160,000)(160,000)(160,000)(160,000)(160,000)(160,000)(160,000)
------------------------------------------------------------------------------------------------------------
138,592 117,505 106,843 358,854 331,544 363,220 371,168 338,949 334,152 320,779 256,824 329,325
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998
ENDING SHORT-TERM DEBT 417,119 377,580 349,285 392,847 329,965 368,666 372,978 328,423 351,372 341,992 278,709 319,100
CONTINGENCIES:
(b) 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000
(c) 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000
(d) (160,000)(160,000)(160,000)(160,000)(160,000)(160,000)(160,000)(160,000)(160,000)(160,000)(160,000)(160,000)
(e) (166,364)(166,364)(166,364)(166,364)(166,364)(166,364)(166,364)(166,364)(166,364)(166,364)(166,364)(166,364)
------------------------------------------------------------------------------------------------------------
335,755 296,216 267,921 311,483 248,601 287,302 291,614 247,059 270,008 260,628 197,345 237,736
</TABLE>
<TABLE>
<S> <C>
(a) Short-term debt levels based on the Company's Receipt and Disbursements Forecast (attached).
(b) Contingency based on an estimate of average monthly variances of actual
high and low cash balances between June 1995-June 1996,
calculated to be approximately $85 million.
(c) Contingency based on an assumption that the NBFT may not be available and CL&P will have to fund the nuclear units, estimated
to be 80% of $200 million or $160 million.
(d) Contingency based on the assumption that CL&P will issue a bond for $160 million in the month of June 1996.
(e) Contingency based on the assumption that CL&P will not fund the costs associated with the disposal of spent fuel which have
been included in the forecast [line (a)].
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
#### CLP 1996
CONNECTICUT LIGHT & POWER
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
BEGINNING CASH BALANCE 337 4230 36505 76717 34512 3224 15829
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL 97732 98912 94559 86268 77192 72801 78501 83392 79377
COMMERCIAL 69827 70401 69897 68355 67506 69310 73992 76879 74628
INDUSTRIAL 28489 25384 26272 26614 26769 26323 27726 28127 27132
OTHER RETAIL 3098 3019 3190 2844 2852 3098 2938 2979 3173
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE 8739 9770 9804 9814 9817 8069 8072 8072 8072
INTEREST INCOME 15 140 297 135 13 60
DIVIDENDS RECEIVED 160 1240 204 160 1240 204 160 1240
OTHER RECEIPTS 542 542 542 542 542 542 542 542 542
PAYMENTS FROM ASSOC. COS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 208427 208188 205517 194781 184837 181681 192109 200163 194223
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL 16472 15064 5241 4772 23525 25513 25829 34813 32355
NUCLEAR FUEL 13752 1081 1155 15365 1033 1136 14221 1175 1136
PURCHASED POWER 27237 25688 25516 26147 26357 26387 26161 26224 27661
INTERCOMPANY BILLINGS - NUGT 5137 5566 5312 5393 4825 4992 5134 5348 4860
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 42934 13911 2209 36570 2354 3302 47988 18570 2048
FEDERAL INCOME TAX 57978 14551 1552
STATE INCOME TAX 2108 18392 4982 2788
O&M LABOR 15499 14194 15159 18882 20021 19840 21941 20910 19474
O&M NON-LABOR 56769 39260 36217 38467 47155 49817 48873 53780 51375
INTEREST ON SHORT-TERM DEBT 224 263 108
INTEREST ON LONG-TERM DEBT 15507 10332 1897 14930 2151 12554 16177 10496 2105
PREFERRED DIVIDEND 1435 847 1524 1435 847 1524 1435 847 1524
COMMON DIVIDEND 59814 33814 46814
MISC DISBURSEMENTS 687 688 688 689 689 690 690 691 691
NUCLEAR DECOMMISSIONING 2645 2645 2645 3312 3312 3312 3312 3312 3312
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 1225 1225 1225 1225 1225 1225 1225 1225 1225
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 199524 130763 160710 243555 133603 203640 212987 177390 198923
CASH GENERATION BEFORE CONST 8903 77425 44807 (48775) 51234 (21959) (20878) 22773 (4700)
CONST EXP - LABOR 1139 1155 1198 1050 1010 965 941 939 978
CONST EXP - NON-LABOR 17222 11170 11333 11758 10304 9909 9469 9229 9214
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 18361 12325 12531 12808 11314 10874 10410 10169 10192
INTERNAL CASH BEFORE FINANCINGS (9121) 65100 36505 (25077) 39920 43884 3224 15829 937
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
CONNECTICUT LIGHT & POWER
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 937 3763 337
CASH RECEIPTS:
RESIDENTIAL 73901 76528 85681 1004845
COMMERCIAL 71097 68766 66973 847630
INDUSTRIAL 28602 26997 25368 323802
OTHER RETAIL 3196 3466 3268 37120
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE 8072 8072 8072 104446
INTEREST INCOME 4 13 676
DIVIDENDS RECEIVED 204 1603 6415
OTHER RECEIPTS 542 542 542 6500
PAYMENTS FROM ASSOC. COS
__ ________ ________ ________ _____
TOTAL RECEIPTS 185617 184370 191520 2331432
CASH DISBURSEMENTS:
FOSSIL FUEL 24591 26321 32256 266753
NUCLEAR FUEL 18944 1136 1175 71310
PURCHASED POWER 27672 29436 29709 324196
INTERCOMPANY BILLINGS - NUGT 5066 5511 5693 62836
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 34483 1690 1454 207513
FEDERAL INCOME TAX 1344 75426
STATE INCOME TAX 555 28825
O&M LABOR 21334 19076 24700 231029
O&M NON-LABOR 48023 52364 47098 569199
INTEREST ON SHORT-TERM DEBT 112 708
INTEREST ON LONG-TERM DEBT 15137 2359 12339 115985
PREFERRED DIVIDEND 1435 847 1524 15221
COMMON DIVIDEND 46814 187256
MISC DISBURSEMENTS 692 692 693 8280
NUCLEAR DECOMMISSIONING 3312 3312 3312 37743
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 1225 1225 1225 14700
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 201913 144081 209890 2216980
CASH GENERATION BEFORE CONST (16296) 40289 (18370) 114452
CONST EXP - LABOR 980 977 2747 14080
CONST EXP - NON-LABOR 9594 9615 9587 128404
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 10574 10592 12335 142484
INTERNAL CASH BEFORE FINANCINGS (25934) 29697 (26942) (27695)
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
CONNECTICUT LIGHT & POWER
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT 62500
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (9372)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE (625)
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING 61875 (9372)
CASH BEFORE AUTOMATIC FINANCINGS (9121) 65100 36505 (25077) 101795 34512 3224 15829 937
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED 9121 25077
SHORT-TERM DEBT REPAID (60871) (25077)
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS 9121 (60871) 25077 (25077)
ENDING CASH BALANCE 0 4230 36505 () 76717 34512 3224 15829 937
ENDING BALANCES:
---------------
CASH 500 500 500 500
TEMP CASH INVESTMENTS 3730 36005 76217 34512 3224 15329 937
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 4230 36505 76717 34512 3224 15829 937
SHORT TERM DEBT 60871 25077
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD (60871) 4230 36505 (25077) 76717 34512 3224 15829 937
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
CONNECTICUT LIGHT & POWER
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT 62500
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (9372)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE (625)
__ ________ ________ ________ _____
NET PLANNED FINANCING 52503
CASH BEFORE AUTOMATIC FINANCINGS (25934) 29697 (26942) 24808
SHORT-TERM DEBT BORROWED 25934 26942 87074
SHORT-TERM DEBT REPAID (25934) (111882)
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS 25934 (25934) 26942 (24808)
ENDING CASH BALANCE () 3763 () ()
ENDING BALANCES:
---------------
CASH 500
TEMP CASH INVESTMENTS 3263
__ ________ ________ ________ _____
TOTAL CASH BALANCE 3763
SHORT TERM DEBT 25934 26942 26942
__ ________ ________ ________ _____
NET CASH + TCI - STD (25934) 3763 (26942) (26942)
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
#### CLP 1997
CONNECTICUT LIGHT & POWER
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
BEGINNING CASH BALANCE 500 500 500 500
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL 96411 95729 91244 83728 75596 71883 78202 83424 79746
COMMERCIAL 68079 67904 67830 66697 66632 69135 74281 77509 75770
INDUSTRIAL 24403 23919 25125 24683 25347 26600 26518 27638 26815
OTHER RETAIL 3062 2851 3134 2826 2755 3054 2957 3024 3160
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE 8072 8733 8733 8733 8733 8733 8733 8733 8733
INTEREST INCOME
DIVIDENDS RECEIVED 167 1443 204 167 1443 204 167 1443
OTHER RECEIPTS 542 542 542 542 542 542 542 542 542
PAYMENTS FROM ASSOC. COS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 200568 199845 198051 187412 179772 181389 191436 201037 196209
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL 34227 31048 19814 19201 21090 14861 15148 26346 14687
NUCLEAR FUEL 15399 1059 1136 14333 795 882 11215 1060 1125
PURCHASED POWER 29957 26576 26638 27319 28445 27750 28291 31250 27683
INTERCOMPANY BILLINGS - NUGT 4815 5216 5220 5261 5429 4844 4347 4863 5009
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 11772 17608 2635 35003 1825 2707 46105 19089 1670
FEDERAL INCOME TAX 22581 10745 15084
STATE INCOME TAX 186 7025 3402 7147
O&M LABOR 19396 18001 21819 21580 17802 16158 15734 14584 16054
O&M NON-LABOR 60306 47948 44696 53600 53046 44231 40392 39404 36723
INTEREST ON SHORT-TERM DEBT 119 238 146 99 1214 1095 1233 1269 1128
INTEREST ON LONG-TERM DEBT 16177 10532 2138 15171 2399 12620 15913 10536 2138
PREFERRED DIVIDEND 1435 847 1524 1435 847 1524 1435 847 1524
COMMON DIVIDEND 41869 41869 41869
MISC DISBURSEMENTS 710 711 711 712 712 713 713 714 715
NUCLEAR DECOMMISSIONING 3411 3411 3411 3411 3411 3411 3411 3411 3411
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 1225 1225 1225 1225 1225 1225 1225 1225 1225
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 198949 164418 173168 227957 138240 188037 185163 154596 177190
CASH GENERATION BEFORE CONST 1619 35428 24883 (40545) 41532 (6648) 6273 46440 19019
CONST EXP - LABOR 1315 1315 1315 1315 1315 1315 1315 1315 1315
CONST EXP - NON-LABOR 26954 12906 12906 12906 12906 12906 12906 12906 12906
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 28269 14221 14221 14221 14221 14221 14221 14221 14221
INTERNAL CASH BEFORE FINANCINGS (26650) 21206 11162 (54266) 27311 (20369) (7948) 32219 5298
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
CONNECTICUT LIGHT & POWER
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 500 500 500
CASH RECEIPTS:
RESIDENTIAL 74431 77324 86759 994478
COMMERCIAL 72483 70187 68394 844900
INDUSTRIAL 28832 27130 25453 312464
OTHER RETAIL 3223 3518 3223 36787
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE 8733 8733 8733 104135
INTEREST INCOME
DIVIDENDS RECEIVED 204 1813 7255
OTHER RECEIPTS 542 542 542 6500
PAYMENTS FROM ASSOC. COS
__ ________ ________ ________ _____
TOTAL RECEIPTS 188448 187433 194917 2306518
CASH DISBURSEMENTS:
FOSSIL FUEL 5608 8625 19286 229941
NUCLEAR FUEL 17218 886 900 66007
PURCHASED POWER 27116 25960 26335 333319
INTERCOMPANY BILLINGS - NUGT 5392 4168 9046 63610
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 33564 1372 1339 174689
FEDERAL INCOME TAX 51679 100089
STATE INCOME TAX 15800 33560
O&M LABOR 16263 17962 22327 217678
O&M NON-LABOR 40149 40639 44605 545739
INTEREST ON SHORT-TERM DEBT 1107 1048 764 9460
INTEREST ON LONG-TERM DEBT 7651 2399 12373 110046
PREFERRED DIVIDEND 1435 847 1524 15221
COMMON DIVIDEND 41869 167475
MISC DISBURSEMENTS 715 716 716 8558
NUCLEAR DECOMMISSIONING 3411 3411 3411 40932
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 1225 1225 1225 14700
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 160855 109256 253197 2131025
CASH GENERATION BEFORE CONST 27594 78177 (58280) 175493
CONST EXP - LABOR 1315 1315 1315 15786
CONST EXP - NON-LABOR 12906 12906 12906 168920
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 14221 14221 14221 184706
INTERNAL CASH BEFORE FINANCINGS 13872 64456 (72001) (9212)
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
CONNECTICUT LIGHT & POWER
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (119) (197245) (10807)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (119) (197245) (10807)
CASH BEFORE AUTOMATIC FINANCINGS (26650) 21087 11162 (251511) 27311 (31176) (7948) 32219 5298
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED 26650 251511 31176 7948
SHORT-TERM DEBT REPAID (20587) (10662) (26811) (31719) (4798)
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS 26650 (20587) (10662) 251511 (26811) 31176 7948 (31719) (4798)
ENDING CASH BALANCE () 500 500 () 500 () () 500 500
ENDING BALANCES:
---------------
CASH 500 500 500 500 500
TEMP CASH INVESTMENTS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 500 500 500 500 500
SHORT TERM DEBT 53592 33005 22343 273854 247044 278220 286168 254449 249652
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD (53592) (32505) (21843) (273854) (246544) (278220) (286168) (253949) (249152) (
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
CONNECTICUT LIGHT & POWER
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (208171)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING (208171)
CASH BEFORE AUTOMATIC FINANCINGS 13872 64456 (72001) (217383)
SHORT-TERM DEBT BORROWED 72001 389287
SHORT-TERM DEBT REPAID (13372) (63956) (171904)
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS (13372) (63956) 72001 217383
ENDING CASH BALANCE 500 500 () ()
ENDING BALANCES:
---------------
CASH 500 500
TEMP CASH INVESTMENTS
__ ________ ________ ________ _____
TOTAL CASH BALANCE 500 500
SHORT TERM DEBT 236279 172324 244325 244325
__ ________ ________ ________ _____
NET CASH + TCI - STD 235779) (171824) (244325) (244325)
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
#### CLP 1998
CONNECTICUT LIGHT & POWER
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
BEGINNING CASH BALANCE 500 500 500 500
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL 96534 96321 93254 86943 79049 73746 79150 85307 82329
COMMERCIAL 68728 68888 69797 69643 70082 71389 75716 79711 78709
INDUSTRIAL 24181 24148 25648 25540 26423 27249 26823 28249 27497
OTHER RETAIL 3448 3328 3668 3268 3176 3485 3298 3414 3635
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE 8733 8970 8970 8970 8970 8970 8970 8970 8970
INTEREST INCOME
DIVIDENDS RECEIVED 171 1545 204 171 1545 204 171 1545
OTHER RECEIPTS 542 542 542 542 542 542 542 542 542
PAYMENTS FROM ASSOC. COS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 202165 202368 203423 195110 188412 186926 194703 206364 203227
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL 20092 20324 7820 8215 3638 8431 10403 18079 15575
NUCLEAR FUEL 13608 1059 1173 15213 1173 1135 15208 1173 1135
PURCHASED POWER 27028 26324 26670 27308 27171 26900 26764 26408 27009
INTERCOMPANY BILLINGS - NUGT 5316 5773 5605 6060 5685 5680 5566 5670 5572
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 12198 18067 2333 34720 1886 2794 46378 19392 1725
FEDERAL INCOME TAX 3470 47229 37223 38014
STATE INCOME TAX 4853 12930 10240 10412
O&M LABOR 17493 16233 16232 17493 16232 16233 17492 16232 16232
O&M NON-LABOR 54738 43440 40503 40497 46380 40502 40498 43439 40502
INTEREST ON SHORT-TERM DEBT 1104 1884 1708 1580 1774 1493 1665 1685 1486
INTEREST ON LONG-TERM DEBT 15913 10554 2155 7667 2418 12389 15280 10556 2155
PREFERRED DIVIDEND 1435 847 1524 1435 847 1524 1435 847 1524
COMMON DIVIDEND 42758 42758 42758
MISC DISBURSEMENTS 738 739 739 740 741 741 742 742 743
NUCLEAR DECOMMISSIONING 3623 3623 3623 3623 3623 3623 3623 3623 3623
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 1225 1225 1225 1225 1225 1225 1225 1225 1225
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 174511 150091 162392 225935 112793 212890 186279 149072 209690
CASH GENERATION BEFORE CONST 27654 52276 41032 (30825) 75619 (25964) 8425 57292 (6463)
CONST EXP - LABOR 1178 1178 1178 1178 1178 1178 1178 1178 1178
CONST EXP - NON-LABOR 12906 11559 11559 11559 11559 11559 11559 11559 11559
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 14084 12737 12737 12737 12737 12737 12737 12737 12737
INTERNAL CASH BEFORE FINANCINGS 13570 39539 28795 (43062) 62882 (38201) (4312) 44555 (18700)
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
CONNECTICUT LIGHT & POWER
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 500 500
CASH RECEIPTS:
RESIDENTIAL 76512 79012 88971 1017127
COMMERCIAL 74946 72098 70303 870011
INDUSTRIAL 29497 27591 25840 318688
OTHER RETAIL 3654 3998 3680 42053
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE 8970 8970 8970 107402
INTEREST INCOME
DIVIDENDS RECEIVED 204 1920 7680
OTHER RECEIPTS 542 542 542 6500
PAYMENTS FROM ASSOC. COS
__ ________ ________ ________ _____
TOTAL RECEIPTS 194324 192211 200226 2369460
CASH DISBURSEMENTS:
FOSSIL FUEL 13268 9601 13890 149337
NUCLEAR FUEL 18735 1141 1180 71933
PURCHASED POWER 27882 28263 28435 326162
INTERCOMPANY BILLINGS - NUGT 4221 5693 6625 67465
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 33831 1417 1386 176126
FEDERAL INCOME TAX 44105 170040
STATE INCOME TAX 12069 50505
O&M LABOR 17492 16232 16233 199830
O&M NON-LABOR 40496 43439 40501 514935
INTEREST ON SHORT-TERM DEBT 1587 1547 1261 18772
INTEREST ON LONG-TERM DEBT 7667 2418 12389 101563
PREFERRED DIVIDEND 1435 847 1456 15153
COMMON DIVIDEND 42758 171034
MISC DISBURSEMENTS 744 744 745 8899
NUCLEAR DECOMMISSIONING 3623 3623 3623 43476
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 1225 1225 1225 14700
ADVANCE PAYMENTS TO EUA
PAYMENTS TO ASSOC. COS
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 172207 116191 227881 2099930
CASH GENERATION BEFORE CONST 22118 76020 (27655) 269530
CONST EXP - LABOR 1178 1178 1178 14138
CONST EXP - NON-LABOR 11559 11559 11559 140053
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 12737 12737 12737 154191
INTERNAL CASH BEFORE FINANCINGS 9381 63783 (39892) 115339
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
CONNECTICUT LIGHT & POWER
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (20000)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK (3750)
CASH RETIREMENTS-PRIOR SPENT F (166364)
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (186364) (3750)
CASH BEFORE AUTOMATIC FINANCINGS (172794) 39539 28795 (43062) 62882 (38201) (4312) 44555 (22450)
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED 172794 43062 38201 4312 22450
SHORT-TERM DEBT REPAID (39039) (28295) (62382) (44055)
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS 172794 (39039) (28295) 43062 (62382) 38201 4312 (44055) 22450
ENDING CASH BALANCE () 500 500 () 500 () () 500 ()
ENDING BALANCES:
---------------
CASH 500 500 500 500
TEMP CASH INVESTMENTS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 500 500 500 500
SHORT TERM DEBT 417119 378080 349785 392847 330465 368666 372978 328923 351372
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD (417119) (377580) (349285) (392847) (329965) (368666) (372978) (328423) (351372) (
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
CONNECTICUT LIGHT & POWER
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (20000)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK (3750)
CASH RETIREMENTS-PRIOR SPENT F ( (166364)
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING ( (190114)
CASH BEFORE AUTOMATIC FINANCINGS ( 9381 63783 (39892) (74775)
SHORT-TERM DEBT BORROWED 39892 320710
SHORT-TERM DEBT REPAID (8881) (63283) (245935)
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS (8881) (63283) 39892 74775
ENDING CASH BALANCE 500 500 () ()
ENDING BALANCES:
---------------
CASH 500 500
TEMP CASH INVESTMENTS
__ ________ ________ ________ _____
TOTAL CASH BALANCE 500 500
SHORT TERM DEBT 342492 279209 319100 319100
__ ________ ________ ________ _____
NET CASH + TCI - STD ( 341992) (278709) (319100) (319100)
</TABLE>
<TABLE>
<CAPTION>
WESTERN MASSACHUSETTS ELECTRIC COMPANY EXHIBIT H.3
PROJECTED MONTH ENDING SHORT-TERM DEBT LEVEL
(THOUSANDS OF DOLLARS)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1996 1996 1996 1996 1996 1996 1996 1996 1996 1996 1996 1996
ENDING SHORT-TERM DEBT 23,840 12,858 11,243 21,018 18,179 27,270 28,669 28,375 36,690 44,022 41,820 49,732
CONTINGENCIES:
(b) 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000
(c) 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000
(d) 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000
(e) (50,000) (50,000) (50,000) (50,000)
-----------------------------------------------------------------------------------------------------------
126,840 115,858 114,243 124,018 121,179 130,270 131,669 131,375 89,690 97,022 94,820 102,732
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1997 1997 1997 1997 1997 1997 1997 1997 1997 1997 1997 1997
ENDING SHORT-TERM DEBT 57,429 56,106 75,195 84,820 82,780 86,869 81,543 73,451 74,840 73,717 63,834 78,313
CONTINGENCIES:
(b) 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000
(c) 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000
(d) 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000
(e) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000)
------------------------------------------------------------------------------------------------------------
110,429 109,106 128,195 137,820 135,780 139,869 134,543 126,451 127,840 126,717 116,834 131,313
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998
ENDING SHORT-TERM DEBT 119,891 115,053 125,096 133,001 124,401 132,124 128,481 121,318 127,384 128,741 119,926 128,368
CONTINGENCIES:
(b) 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000
(c) 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000
(d) 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000
(e) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000)
(f) (39,024) (39,024) (39,024) (39,024) (39,024) (39,024) (39,024) (39,024) (39,024) (39,024) (39,024) (39,024)
-----------------------------------------------------------------------------------------------------------
133,867 129,029 139,072 146,977 138,377 146,100 142,457 135,294 141,360 142,717 133,902 142,344
</TABLE>
<TABLE>
<S> <C>
(a) Short-term debt levels based on the Company's Receipt and Disbursement Forecast (attached).
(b) Contingency based on an estimate of average monthly variances of actual high and low cash balances between June 1995-June 1996,
calculated to be approximately $30 million.
(c) Contingency based on an assumption that the NBFT may not be available and WMECO will have to fund the nuclear units, estimated
to be 20% of $200 million or $40 million.
(d) Assumes a contingency for refinancing WMECO Dutch Auction Rate Transferrable Securities of $33 million.
(e) Contingency based on the assumption that WMECO will issue a bond for $50 million in the month of September 1996.
(f) Contingency based on the assumption that WMECO may not fund the costs associated with the disposal of spent fuel which have
been included in the forecast [line (a)].
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
#### WMECO 1996
WESTERN MASSACHUSETTS ELECTRIC COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
BEGINNING CASH BALANCE 202 210 500 500 500 294
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL 15888 15992 15048 13396 12204 11593 12104 12345 11956
COMMERCIAL 11078 10942 10625 9994 10014 10389 11128 11380 11174
INDUSTRIAL 6517 6361 6396 6156 6451 6442 6833 6652 6929
OTHER RETAIL 500 413 443 381 322 317 354 346 402
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE 2059 1111 1030 1007 1000 996 990 990 990
INTEREST INCOME
DIVIDENDS RECEIVED 42 342 51 42 342 51 42 342
OTHER RECEIPTS 58 58 58 58 58 58 58 58 58
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 36101 34919 33941 31043 30092 30138 31518 31813 31850
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL 142 1171 523 454 4464 4340 4956 6087 5835
NUCLEAR FUEL 3125 240 257 3486 229 253 3229 261 253
PURCHASED POWER 6076 5630 5589 5717 5636 5658 5623 5624 5961
INTERCOMPANY BILLINGS - NUGT (2234) (2815) (2594) (2515) (2149) (2451) (2255) (2459) (2376)
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 478 2784 451 5578 473 538 432 2832 422
FEDERAL INCOME TAX 9994 459 (2176)
STATE INCOME TAX 317 1880 178
O&M LABOR 3377 3142 3286 4163 4267 4265 4411 4632 4509
O&M NON-LABOR 16914 8409 7860 8197 10244 10486 10481 10822 11340
INTEREST ON SHORT-TERM DEBT 104 104 58 51 91 81 118 124 124
INTEREST ON LONG-TERM DEBT 2489 179 4123 179 179 3473 2242 179 4120
PREFERRED DIVIDEND 386 456 276 386 703 662 427 276
COMMON DIVIDEND 8891 8891 8891
MISC DISBURSEMENTS 111 111 111 111 111 111 111 111 111
NUCLEAR DECOMMISSIONING 427 427 527 527 527 527 527 527 527
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 250 250 250 250 250 250 250 250 250
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 31644 20088 29925 38458 25024 37058 30786 29418 38066
CASH GENERATION BEFORE CONST 4457 14831 4017 (7415) 5068 (6920) 732 2395 (6215)
CONST EXP - LABOR 217 222 220 207 201 197 194 194 197
CONST EXP - NON-LABOR 4232 2127 2182 2154 2028 1973 1937 1906 1903
INV NOT INCLUDED IN CONST
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 4449 2349 2402 2361 2229 2170 2131 2100 2100
INTERNAL CASH BEFORE FINANCINGS 210 12692 2115 (9275) 2839 (8591) (1400) 294 (8021)
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
WESTERN MASSACHUSETTS ELECTRIC COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 500 202
CASH RECEIPTS:
RESIDENTIAL 11439 11909 13032 156906
COMMERCIAL 10737 10494 10059 128014
INDUSTRIAL 6813 6573 6029 78152
OTHER RETAIL 483 521 517 4999
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE 990 992 992 13144
INTEREST INCOME
DIVIDENDS RECEIVED 51 434 1739
OTHER RECEIPTS 58 58 58 700
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 30571 30547 31121 383655
CASH DISBURSEMENTS:
FOSSIL FUEL 5434 4333 6045 43783
NUCLEAR FUEL 4316 253 261 16162
PURCHASED POWER 5960 6480 6582 70537
INTERCOMPANY BILLINGS - NUGT (2713) (2450) (3633) (30644)
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 5647 352 201 20188
FEDERAL INCOME TAX (2837) 5439
STATE INCOME TAX 2376
O&M LABOR 4463 4310 5653 50476
O&M NON-LABOR 11051 10944 10588 127335
INTEREST ON SHORT-TERM DEBT 159 190 183 1386
INTEREST ON LONG-TERM DEBT 179 179 3473 20996
PREFERRED DIVIDEND 386 703 4662
COMMON DIVIDEND 8891 35565
MISC DISBURSEMENTS 111 111 111 1330
NUCLEAR DECOMMISSIONING 527 527 527 6124
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 250 250 250 3000
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 35770 26183 36295 378715
CASH GENERATION BEFORE CONST (5199) 4364 (5174) 4940
CONST EXP - LABOR 197 232 464 2742
CONST EXP - NON-LABOR 1936 1930 2274 26581
INV NOT INCLUDED IN CONST
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 2133 2162 2738 29323
INTERNAL CASH BEFORE FINANCINGS (7331) 2202 (7412) (24182)
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:02 pm
WESTERN MASSACHUSETTS ELECTRIC COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK (1500)
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (1500)
CASH BEFORE AUTOMATIC FINANCINGS 210 11192 2115 (9275) 2839 (8591) (1400) 294 (8021)
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED 9275 8591 1400 8021
SHORT-TERM DEBT REPAID (10692) (1615) (2339)
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS (10692) (1615) 9275 (2339) 8591 1400 8021
ENDING CASH BALANCE 210 500 500 () 500 () () 294 ()
ENDING BALANCES:
---------------
CASH 210 500 500 500 294
TEMP CASH INVESTMENTS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 210 500 500 500 294
SHORT TERM DEBT 24050 13358 11743 21018 18679 27270 28669 28669 36690
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD (23840) (12858) (11243) (21018) (18179) (27270) (28669) (28375) (36690)
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
WESTERN MASSACHUSETTS ELECTRIC COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK (1500)
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING (1500)
CASH BEFORE AUTOMATIC FINANCINGS (7331) 2202 (7412) (25682)
SHORT-TERM DEBT BORROWED 7331 7412 42030
SHORT-TERM DEBT REPAID (1702) (16348)
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS 7331 (1702) 7412 25682
ENDING CASH BALANCE () 500 () ()
ENDING BALANCES:
---------------
CASH 500
TEMP CASH INVESTMENTS
__ ________ ________ ________ _____
TOTAL CASH BALANCE 500
SHORT TERM DEBT 44022 42320 49732 49732
__ ________ ________ ________ _____
NET CASH + TCI - STD (44022) (41820) (49732) (49732)
</TABLE>
<TABLE>
<CAPTION>
#### WMECO 1997
1Thursday, May 2, 1996 5:20:02 pm
WESTERN MASSACHUSETTS ELECTRIC COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
BEGINNING CASH BALANCE 500 () () 500 () 500 500
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL 15077 15139 14590 13271 12144 11700 12442 12801 12258
COMMERCIAL 10422 10418 10497 10102 10141 10739 11756 12152 11746
INDUSTRIAL 5861 5754 6006 5839 6290 6795 6967 7022 7269
OTHER RETAIL 459 368 423 369 308 315 358 341 396
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE 1214 1467 1576 1609 1617 1623 1632 1632 1632
INTEREST INCOME
DIVIDENDS RECEIVED 44 397 51 44 397 51 44 397
OTHER RECEIPTS 58 58 58 58 58 58 58 58 58
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 33091 33249 33548 31300 30603 31627 33264 34049 33756
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL 4999 4907 3897 3529 3319 691 933 1887 955
NUCLEAR FUEL 3493 235 252 3249 172 195 2532 235 252
PURCHASED POWER 6641 5705 5739 5890 6173 6019 6121 6800 5969
INTERCOMPANY BILLINGS - NUGT (1704) (2373) (2285) (2237) (1893) (1926) (1219) (1767) (2150)
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 595 2947 555 5732 372 424 344 2795 339
FEDERAL INCOME TAX 2958 1554 2095
STATE INCOME TAX (1110) 560 300 843
O&M LABOR 3832 3842 4561 4343 3691 3294 2941 2895 3123
O&M NON-LABOR 13802 9558 9581 11259 10749 9230 8248 7425 7318
INTEREST ON SHORT-TERM DEBT 220 255 251 333 376 369 385 364 328
INTEREST ON LONG-TERM DEBT 2242 184 4125 184 184 3478 2246 184 3702
PREFERRED DIVIDEND 662 427 283 386 682 669 399 283
COMMON DIVIDEND 7350 7350 7350
MISC DISBURSEMENTS 114 114 114 114 114 114 114 115 115
NUCLEAR DECOMMISSIONING 750 750 750 750 750 750 750 750 750
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 250 250 250 250 250 250 250 250 250
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 35896 26802 34313 37300 24939 32092 24314 22333 31521
CASH GENERATION BEFORE CONST (2805) 6446 (765) (6000) 5664 (465) 8950 11716 2235
CONST EXP - LABOR 335 335 335 335 335 335 335 335 335
CONST EXP - NON-LABOR 4556 3289 3289 3289 3289 3289 3289 3289 3289
INV NOT INCLUDED IN CONST
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 4892 3624 3624 3624 3624 3624 3624 3624 3624
INTERNAL CASH BEFORE FINANCINGS (7697) 2822 (3889) (9624) 2040 (3589) 5326 8592 (889)
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
WESTERN MASSACHUSETTS ELECTRIC COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 500 500
CASH RECEIPTS:
RESIDENTIAL 11558 11955 12941 155876
COMMERCIAL 11064 10699 10129 129864
INDUSTRIAL 6836 6563 6009 77212
OTHER RETAIL 465 499 501 4802
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE 1632 1633 1633 18898
INTEREST INCOME
DIVIDENDS RECEIVED 51 492 1968
OTHER RECEIPTS 58 58 58 700
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 31663 31406 31763 389318
CASH DISBURSEMENTS:
FOSSIL FUEL 934 325 2058 28435
NUCLEAR FUEL 3945 198 199 14958
PURCHASED POWER 5845 5599 5673 72173
INTERCOMPANY BILLINGS - NUGT (2531) (2111) (5857) (28052)
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 5850 279 170 20401
FEDERAL INCOME TAX 10587 17194
STATE INCOME TAX 1924 2516
O&M LABOR 3008 3721 6393 45646
O&M NON-LABOR 7848 7580 9244 111843
INTEREST ON SHORT-TERM DEBT 332 329 285 3827
INTEREST ON LONG-TERM DEBT 184 184 3478 20373
PREFERRED DIVIDEND 386 682 4860
COMMON DIVIDEND 7350 29399
MISC DISBURSEMENTS 115 115 115 1374
NUCLEAR DECOMMISSIONING 750 750 750 9000
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 250 250 250 3000
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 26916 17900 42617 356945
CASH GENERATION BEFORE CONST 4747 13506 (10855) 32373
CONST EXP - LABOR 335 335 335 4023
CONST EXP - NON-LABOR 3289 3289 3289 40732
INV NOT INCLUDED IN CONST
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 3624 3624 3624 44755
INTERNAL CASH BEFORE FINANCINGS 1124 10383 (13979) (12381)
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:02 pm
WESTERN MASSACHUSETTS ELECTRIC COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (14700)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK (1500)
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (1500) (14700)
CASH BEFORE AUTOMATIC FINANCINGS (7697) 1322 (18589) (9624) 2040 (3589) 5326 8592 (889)
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED 7697 18589 9624 3589 889
SHORT-TERM DEBT REPAID (822) (1540) (4826) (8092)
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS 7697 (822) 18589 9624 (1540) 3589 (4826) (8092) 889
ENDING CASH BALANCE 0 500 () () 500 () 500 500 0
ENDING BALANCES:
---------------
CASH 500 () () 500 () 500 500
TEMP CASH INVESTMENTS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 500 () () 500 () 500 500
SHORT TERM DEBT 57429 56606 75195 84820 83280 86869 82043 73951 74840
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD (57429) (56106) (75195) (84820) (82780) (86869) (81543) (73451) (74840)
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
WESTERN MASSACHUSETTS ELECTRIC COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (14700)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK (1500)
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING (16200)
CASH BEFORE AUTOMATIC FINANCINGS 1124 10383 (13979) (28581)
SHORT-TERM DEBT BORROWED 13979 54367
SHORT-TERM DEBT REPAID (624) (9883) (25786)
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS (624) (9883) 13979 28581
ENDING CASH BALANCE 500 500 () ()
ENDING BALANCES:
---------------
CASH 500 500 () ()
TEMP CASH INVESTMENTS
__ ________ ________ ________ _____
TOTAL CASH BALANCE 500 500 () ()
SHORT TERM DEBT 74217 64334 78313 78313
__ ________ ________ ________ _____
NET CASH + TCI - STD (73717) (63834) (78313) (78313)
</TABLE>
<TABLE>
<CAPTION>
#### WMECO 1998
1Thursday, May 2, 1996 5:20:02 pm
WESTERN MASSACHUSETTS ELECTRIC COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
BEGINNING CASH BALANCE () () 500 () () 500 () 500 500
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL 14599 14683 14411 13369 12344 11574 12011 12435 12171
COMMERCIAL 10096 10008 10249 10057 10182 10465 11176 11621 11511
INDUSTRIAL 5559 5389 5763 5776 6265 6633 6516 6641 6926
OTHER RETAIL 456 371 433 391 326 310 346 347 415
WHOLESALE
ADDITIONAL REQUIRED (122) (230) (286) (291) (289) (289) (305) (315) (312)
OTHER REVENUE 1700 1795 1828 1837 1840 1842 1844 1844 1844
INTEREST INCOME
DIVIDENDS RECEIVED 45 425 51 45 425 51 45 425
OTHER RECEIPTS 58 58 58 58 58 58 58 58 58
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 32346 32120 32881 31248 30771 31018 31697 32677 33038
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL 481 1913 764 710 363 311 690 1445 1137
NUCLEAR FUEL 3102 235 261 3450 261 252 3448 261 252
PURCHASED POWER 5828 5663 5757 5889 5861 5814 5781 5689 5828
INTERCOMPANY BILLINGS - NUGT (1935) (2609) (2375) (3052) (2701) (2675) (2295) (2424) (2332)
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 488 2896 474 5938 384 438 355 2847 350
FEDERAL INCOME TAX 7207 5958 5054
STATE INCOME TAX 219 1317 1092 1095
O&M LABOR 3407 3407 3407 3407 3407 3407 3407 3407 3407
O&M NON-LABOR 15484 8514 8515 8513 8514 8514 8513 8514 8514
INTEREST ON SHORT-TERM DEBT 354 542 522 565 601 564 597 583 550
INTEREST ON LONG-TERM DEBT 2246 186 3704 186 186 3480 2249 186 3374
PREFERRED DIVIDEND 669 399 289 386 659 675 370 289
COMMON DIVIDEND 6950 6950 6950
MISC DISBURSEMENTS 118 118 118 118 118 118 118 118 118
NUCLEAR DECOMMISSIONING 800 800 800 800 800 800 800 800 800
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 250 250 250 250 250 250 250 250 250
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 31291 22314 29655 35685 18703 35273 24586 22046 35636
CASH GENERATION BEFORE CONST 1055 9806 3226 (4437) 12068 (4255) 7111 10631 (2598)
CONST EXP - LABOR 321 321 321 321 321 321 321 321 321
CONST EXP - NON-LABOR 3289 3147 3147 3147 3147 3147 3147 3147 3147
INV NOT INCLUDED IN CONST
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 3609 3468 3468 3468 3468 3468 3468 3468 3468
INTERNAL CASH BEFORE FINANCINGS (2555) 6338 258 (7905) 8600 (7223) 3643 7663 (5566)
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
WESTERN MASSACHUSETTS ELECTRIC COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE () () 500 ()
CASH RECEIPTS:
RESIDENTIAL 11563 11946 13120 154226
COMMERCIAL 10968 10621 10240 127194
INDUSTRIAL 6794 6508 5984 74754
OTHER RETAIL 482 512 525 4915
WHOLESALE
ADDITIONAL REQUIRED (302) (301) (304) (3348)
OTHER REVENUE 1844 1845 1845 21908
INTEREST INCOME
DIVIDENDS RECEIVED 51 521 2084
OTHER RECEIPTS 58 58 58 700
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 31458 31189 31989 382433
CASH DISBURSEMENTS:
FOSSIL FUEL 1349 679 1633 11474
NUCLEAR FUEL 4267 254 262 16305
PURCHASED POWER 6019 6137 6205 70471
INTERCOMPANY BILLINGS - NUGT (2763) (2966) (3316) (31444)
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 6240 288 176 20873
FEDERAL INCOME TAX 6717 24937
STATE INCOME TAX 1224 4948
O&M LABOR 3407 3407 3406 40882
O&M NON-LABOR 8513 8514 8514 109137
INTEREST ON SHORT-TERM DEBT 575 581 544 6577
INTEREST ON LONG-TERM DEBT 186 186 3480 19649
PREFERRED DIVIDEND 386 659 4781
COMMON DIVIDEND 6950 27799
MISC DISBURSEMENTS 118 118 118 1418
NUCLEAR DECOMMISSIONING 800 800 800 9600
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 250 250 250 3000
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 29348 18906 36964 340406
CASH GENERATION BEFORE CONST 2111 12283 (4974) 42027
CONST EXP - LABOR 321 321 321 3850
CONST EXP - NON-LABOR 3147 3147 3147 37909
INV NOT INCLUDED IN CONST
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 3468 3468 3468 41758
INTERNAL CASH BEFORE FINANCINGS (1357) 8815 (7942) 268
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:02 pm
WESTERN MASSACHUSETTS ELECTRIC COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (9800)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK (1500)
CASH RETIREMENTS-PRIOR SPENT F (39024)
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (39024) (1500) (9800)
CASH BEFORE AUTOMATIC FINANCINGS (41578) 4838 (9542) (7905) 8600 (7223) 3643 7663 (5566)
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED 41578 9542 7905 7223 5566
SHORT-TERM DEBT REPAID (4338) (8100) (3143) (7163)
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS 41578 (4338) 9542 7905 (8100) 7223 (3143) (7163) 5566
ENDING CASH BALANCE () 500 () () 500 () 500 500 ()
ENDING BALANCES:
---------------
CASH () 500 () () 500 () 500 500 ()
TEMP CASH INVESTMENTS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE () 500 () () 500 () 500 500 ()
SHORT TERM DEBT 119891 115553 125096 133001 124901 132124 128981 121818 127384
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD (119891) (115053) (125096) (133001) (124401) (132124) (128481) (121318) (127384) (
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
WESTERN MASSACHUSETTS ELECTRIC COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (9800)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK (1500)
CASH RETIREMENTS-PRIOR SPENT F (39024)
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING (50324)
CASH BEFORE AUTOMATIC FINANCINGS (1357) 8815 (7942) (50055)
SHORT-TERM DEBT BORROWED 1357 7942 81114
SHORT-TERM DEBT REPAID (8315) (31059)
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS 1357 (8315) 7942 50055
ENDING CASH BALANCE () 500 () ()
ENDING BALANCES:
---------------
CASH () 500 () ()
TEMP CASH INVESTMENTS
__ ________ ________ ________ _____
TOTAL CASH BALANCE () 500 () ()
SHORT TERM DEBT 128741 120426 128368 128368
__ ________ ________ ________ _____
NET CASH + TCI - STD ( 128741) (119926) (128368) (128368)
</TABLE>
<TABLE>
<CAPTION>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE EXHIBIT H.4
PROJECTED MONTH ENDING SHORT-TERM DEBT LEVEL
(THOUSANDS OF DOLLARS)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1996 1996 1996 1996 1996 1996 1996 1996 1996 1996 1996 1996
ENDING SHORT-TERM DEBT (36,095) (61,760) (89,364)(108,026) 73,467 91,837 204,265 184,380 176,717 156,955 166,216 157,667
CONTINGENCIES:
(b) 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
-----------------------------------------------------------------------------------------------------------
(16,095) (41,760) (69,364) (88,026) 93,467 111,837 224,265 204,380 196,717 176,955 186,216 177,667
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1997 1997 1997 1997 1997 1997 1997 1997 1997 1997 1997 1997
ENDING SHORT-TERM DEBT 130,635 99,141 76,012 53,249 76,025 80,217 72,538 52,931 43,421 19,215 27,760 17,121
CONTINGENCIES:
(b) 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
-----------------------------------------------------------------------------------------------------------
150,635 119,141 96,012 73,249 96,025 100,217 92,538 72,931 63,421 39,215 47,760 37,121
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998
ENDING SHORT-TERM DEBT (8,430) (30,632) (42,740) (60,651) 137,856 145,676 145,353 132,570 130,716 114,561 119,461 116,204
CONTINGENCIES:
(b) 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
-----------------------------------------------------------------------------------------------------------
11,570 (10,632) (22,740) (40,651) 157,856 165,676 165,353 152,570 150,716 134,561 139,461 136,204
</TABLE>
<TABLE>
<S> <C>
(a) Short-term debt levels based on the Company's Receipt and Disbursement Forecast (attached).
(b) Contingency based on an estimate of average monthy variances of actual high and low cash balances between June 1995-June 1996.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
#### PSNH 1996
1Thursday, May 2, 1996 5:20:11 pm
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
BEGINNING CASH BALANCE 19445 36095 61760 89364 108026 500
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL 32341 32856 31710 28879 26577 24237 23353 23592 23714
COMMERCIAL 24331 25115 24370 22895 22586 22273 22349 22856 23008
INDUSTRIAL 12335 13133 12543 12807 14038 15300 14470 15157 15271
OTHER RETAIL 515 508 493 533 560 552 524 479 509
WHOLESALE 4975 5719 5951 5796 5499 4818 4366 4343 4293
ADDITIONAL REQUIRED
OTHER REVENUE 2804 3019 3019 3019 3019 3019 3019 3019 3019
INTEREST INCOME 74 139 239 347 419
DIVIDENDS RECEIVED 67 180 85 67 180 85 67 180
OTHER RECEIPTS (601) 481 348 433 367 288 238 280 278
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 76775 81036 78853 74792 73131 70666 68404 69793 70273
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL 9336 5973 5052 3671 2890 3109 2300 2835 3256
NUCLEAR FUEL 1080 1060 1056
PURCHASED POWER 6123 5697 5143 5730 5331 5179 4891 5072 6336
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO 15463 12535 12521 13090 13002 13895 13972 13969 14086
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 1194 491 565 2589 3166 12612 996 599 2296
FEDERAL INCOME TAX (468) (468) (697)
STATE INCOME TAX 1866 640
O&M LABOR 3771 3711 4354 3978 4486 3820 3821 4249 4787
O&M NON-LABOR 10972 9756 9616 11117 10239 11424 9870 9873 10871
INTEREST ON SHORT-TERM DEBT 318 397 883 800
INTEREST ON LONG-TERM DEBT 350 1253 399 399 26893 399 399 1816 399
PREFERRED DIVIDEND 3312 3312 3312
COMMON DIVIDEND 26000 13000
MISC DISBURSEMENTS 291 288 289 290 291 292 293 294 294
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT 167 167 167 167 167 167 167 167 167
SPP SETTLEMENT 7744 7767 8312 8396 8207 7448 138537 2745 2912
COST OF REMOVAL 150 150 150 150 150 150 150 150 150
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 56641 51100 46568 52036 78135 84984 176849 45964 58657
CASH GENERATION BEFORE CONST 20133 29937 32284 22757 (5004) (14318) (108445) 23829 11616
CONST EXP - LABOR 391 438 380 368 375 369 365 366 365
CONST EXP - NON-LABOR 3093 3832 4300 3727 3613 3683 3619 3578 3587
INV NOT INCLUDED IN CONST
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 3484 4271 4680 4095 3989 4052 3984 3944 3952
INTERNAL CASH BEFORE FINANCINGS 36095 61761 89364 108026 99033 (18370) (112429) 19885 8163
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 500 500 19445
CASH RECEIPTS:
RESIDENTIAL 24633 26353 29875 328119
COMMERCIAL 23371 23641 24307 281100
INDUSTRIAL 15074 15157 14164 169449
OTHER RETAIL 566 572 542 6352
WHOLESALE 4227 4197 4368 58552
ADDITIONAL REQUIRED
OTHER REVENUE 3019 3019 3019 36010
INTEREST INCOME 1218
DIVIDENDS RECEIVED 85 332 1328
OTHER RECEIPTS 378 268 278 3036
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 71352 73206 76884 885164
CASH DISBURSEMENTS:
FOSSIL FUEL 3374 3761 3685 49242
NUCLEAR FUEL 1001 4197
PURCHASED POWER 6394 5580 6199 67675
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO 13720 13783 13828 163864
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 485 10125 7298 42416
FEDERAL INCOME TAX (468) (2102)
STATE INCOME TAX 2506
O&M LABOR 4855 3937 4686 50455
O&M NON-LABOR 12128 12286 10145 128298
INTEREST ON SHORT-TERM DEBT 766 681 719 4564
INTEREST ON LONG-TERM DEBT 399 20525 399 53632
PREFERRED DIVIDEND 3312 13250
COMMON DIVIDEND 13000 52000
MISC DISBURSEMENTS 295 296 297 3510
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT 167 167 167 2000
SPP SETTLEMENT 3908 3932 4156 204064
COST OF REMOVAL 150 150 150 1800
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 47642 78535 64261 841372
CASH GENERATION BEFORE CONST 23710 (5329) 12623 43792
CONST EXP - LABOR 364 364 507 4651
CONST EXP - NON-LABOR 3584 3569 3566 43752
INV NOT INCLUDED IN CONST
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 3948 3932 4073 48403
INTERNAL CASH BEFORE FINANCINGS 20262 (8761) 8549 14834
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:11 pm
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (1) (172500)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (1) (172500)
CASH BEFORE AUTOMATIC FINANCINGS 36095 61760 89364 108026 (73467) (18370) (112429) 19885 8163
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED 73467 18370 112429
SHORT-TERM DEBT REPAID (19385) (7663)
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS 73467 18370 112429 (19385) (7663)
ENDING CASH BALANCE 36095 61760 89364 108026 0 0 () 500 500
ENDING BALANCES:
---------------
CASH 500 500 500 500 500 500
TEMP CASH INVESTMENTS 35595 61260 88864 107526
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 36095 61760 89364 108026 500 500
SHORT TERM DEBT 73467 91837 204265 184880 177217
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD 36095 61760 89364 108026 (73467) (91837) (204265) (184380) (176717) (
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (172501)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING (172501)
CASH BEFORE AUTOMATIC FINANCINGS 20262 (8761) 8549 (157667)
SHORT-TERM DEBT BORROWED 8761 213027
SHORT-TERM DEBT REPAID (19762) (8049) (54860)
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS (19762) 8761 (8049) 158167
ENDING CASH BALANCE 500 0 500 500
ENDING BALANCES:
---------------
CASH 500 500 500
TEMP CASH INVESTMENTS
__ ________ ________ ________ _____
TOTAL CASH BALANCE 500 500 500
SHORT TERM DEBT 157455 166216 158167 158167
__ ________ ________ ________ _____
NET CASH + TCI - STD 156955) (166216) (157667) (157667)
</TABLE>
<TABLE>
<CAPTION>
#### PSNH 1997
1Thursday, May 2, 1996 5:20:11 pm
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
BEGINNING CASH BALANCE 500 500 500 500 500 500 500
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL 34721 34791 33184 30093 27818 25246 23964 23984 24034
COMMERCIAL 26545 27002 26202 24687 24283 23445 23097 23508 23712
INDUSTRIAL 12906 13546 13200 13850 14716 15447 14728 15039 15819
OTHER RETAIL 534 531 521 521 578 565 536 524 525
WHOLESALE 4808 5683 6143 6098 5918 5198 4695 4664 4620
ADDITIONAL REQUIRED
OTHER REVENUE 3019 3192 3192 3192 3192 3192 3192 3192 3192
INTEREST INCOME
DIVIDENDS RECEIVED 70 209 85 70 209 85 70 209
OTHER RECEIPTS 253 253 253 253 253 253 253 253 253
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 82785 85068 82904 78778 76827 73554 70549 71233 72365
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL 4537 6798 5620 4633 3644 3832 3374 3554 3436
NUCLEAR FUEL 859 1049 809
PURCHASED POWER 6463 6258 5781 6355 6118 4671 2343 3127 3769
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO 14196 13127 13154 13525 13594 14119 14221 16427 16409
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 1242 497 577 2729 3261 13059 1027 618 2344
FEDERAL INCOME TAX 70 (18) (18) (18)
STATE INCOME TAX (915) 3105 1510
O&M LABOR 3529 3463 4067 4174 4512 4136 3488 3635 3526
O&M NON-LABOR 12032 9332 9178 10587 10794 11582 10706 9194 9536
INTEREST ON SHORT-TERM DEBT 701 581 442 339 238 337 356 324 237
INTEREST ON LONG-TERM DEBT 399 1838 409 409 20571 409 409 1862 409
PREFERRED DIVIDEND 3312 3312 2650
COMMON DIVIDEND 13000 13000 13000
MISC DISBURSEMENTS 302 302 303 303 304 304 305 305 306
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT 167 167 167 167 167 167 167 167 167
SPP SETTLEMENT 5913 4635 4659 5394 4825 7373 22402 6501 6470
COST OF REMOVAL 150 150 150 150 150 150 150 150 150
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 50490 50460 56661 52901 71490 74632 59756 48513 59742
CASH GENERATION BEFORE CONST 32295 34608 26243 25877 5337 (1078) 10792 22720 12623
CONST EXP - LABOR 288 288 288 288 288 288 288 288 288
CONST EXP - NON-LABOR 4976 2825 2825 2825 2825 2825 2825 2825 2825
INV NOT INCLUDED IN CONST
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 5264 3113 3113 3113 3113 3113 3113 3113 3113
INTERNAL CASH BEFORE FINANCINGS 27532 31994 23629 23263 2724 (4192) 7679 20107 10010
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 500 500 500
CASH RECEIPTS:
RESIDENTIAL 24932 26652 30093 339509
COMMERCIAL 24093 24394 25115 296081
INDUSTRIAL 15587 15638 14899 175374
OTHER RETAIL 561 571 539 6504
WHOLESALE 4545 4508 4710 61589
ADDITIONAL REQUIRED
OTHER REVENUE 3192 3192 3192 38132
INTEREST INCOME
DIVIDENDS RECEIVED 85 364 1456
OTHER RECEIPTS 253 253 1076 3859
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 73248 75207 79987 922505
CASH DISBURSEMENTS:
FOSSIL FUEL 5541 9134 5145 59248
NUCLEAR FUEL 1016 3733
PURCHASED POWER 4066 3215 3185 55351
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO 13833 13618 14285 170508
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 500 10429 7532 43815
FEDERAL INCOME TAX (18) 0
STATE INCOME TAX 910 4610
O&M LABOR 3572 3421 4036 45560
O&M NON-LABOR 9283 9389 9037 120649
INTEREST ON SHORT-TERM DEBT 195 87 123 3960
INTEREST ON LONG-TERM DEBT 409 20571 409 48106
PREFERRED DIVIDEND 2650 11925
COMMON DIVIDEND 13000 52000
MISC DISBURSEMENTS 306 307 307 3652
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT 167 167 167 2000
SPP SETTLEMENT 6891 7502 7966 90531
COST OF REMOVAL 150 150 150 1800
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 45928 80639 66235 717448
CASH GENERATION BEFORE CONST 27320 (5432) 13752 205057
CONST EXP - LABOR 288 288 288 3456
CONST EXP - NON-LABOR 2825 2825 2825 36055
INV NOT INCLUDED IN CONST
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 3113 3113 3113 39511
INTERNAL CASH BEFORE FINANCINGS 24706 (8045) 10639 166046
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:11 pm
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK (25000)
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (25000)
CASH BEFORE AUTOMATIC FINANCINGS 27532 31994 23629 23263 (22276) (4192) 7679 20107 10010
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED 22276 4192
SHORT-TERM DEBT REPAID (27032) (31494) (23129) (22763) (7179) (19607) (9510)
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS (27032) (31494) (23129) (22763) 22276 4192 (7179) (19607) (9510)
ENDING CASH BALANCE 500 500 500 500 0 0 500 500 500
ENDING BALANCES:
---------------
CASH 500 500 500 500 500 500 500
TEMP CASH INVESTMENTS
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 500 500 500 500 500 500 500
SHORT TERM DEBT 131135 99641 76512 53749 76025 80217 73038 53431 43921
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD (130635) (99141) (76012) (53249) (76025) (80217) (72538) (52931) (43421)
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK (25000)
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING (25000)
CASH BEFORE AUTOMATIC FINANCINGS 24706 (8045) 10639 141046
SHORT-TERM DEBT BORROWED 8045 34513
SHORT-TERM DEBT REPAID (24206) (10139) (175059)
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS (24206) 8045 (10139) (140546)
ENDING CASH BALANCE 500 () 500 500
ENDING BALANCES:
---------------
CASH 500 500 500
TEMP CASH INVESTMENTS
__ ________ ________ ________ _____
TOTAL CASH BALANCE 500 500 500
SHORT TERM DEBT 19715 27760 17621 17621
__ ________ ________ ________ _____
NET CASH + TCI - STD ( (19215) (27760) (17121) (17121)
</TABLE>
<TABLE>
<CAPTION>
#### PSNH 1998
1Thursday, May 2, 1996 5:20:11 pm
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
BEGINNING CASH BALANCE 500 8430 30632 42740 60651 () 323 500
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL 34645 34751 33916 31225 28728 25731 24214 23804 23943
COMMERCIAL 27421 27963 27538 26170 25737 24760 24202 24085 24331
INDUSTRIAL 12951 13552 13493 14327 15168 15712 14823 14894 15760
OTHER RETAIL 515 513 513 520 577 559 498 478 497
WHOLESALE 5200 6249 6813 6769 6610 5791 5225 5188 5141
ADDITIONAL REQUIRED
OTHER REVENUE 3192 2878 2878 2878 2878 2878 2878 2878 2878
INTEREST INCOME 32 123 172 245
DIVIDENDS RECEIVED 72 224 85 72 224 85 72 224
OTHER RECEIPTS 1075 1075 1075 1075 1075 1075 1075 1075 1075
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 84999 87087 86572 83221 81089 76730 72999 72475 73850
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL 4946 7323 6167 5482 4595 4289 2978 3228 3813
NUCLEAR FUEL 1110 1067 1029
PURCHASED POWER 3481 3726 3993 4273 4126 3396 2919 3270 3623
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO 19896 22519 22319 22681 22498 23046 23009 23126 23328
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 1238 514 597 2806 3360 13449 1060 637 2355
FEDERAL INCOME TAX
STATE INCOME TAX 1146 1674 573
O&M LABOR 4075 4075 4075 4075 4117 4117 4117 4117 4117
O&M NON-LABOR 10466 10557 10557 10557 10557 10656 10656 10656 10656
INTEREST ON SHORT-TERM DEBT 80 623 658 658 601
INTEREST ON LONG-TERM DEBT 409 1876 414 414 20603 414 414 1894 414
PREFERRED DIVIDEND 2650 2650 1987
COMMON DIVIDEND 13000 13000 13000
MISC DISBURSEMENTS 315 315 316 316 317 317 318 318 319
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT 167 167 167 167 167
SPP SETTLEMENT 10012 8015 8566 8650 8459 7523 22371 6653 6622
COST OF REMOVAL 150 150 150 150 150 150 150 150 150
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 56345 61887 71468 62313 81600 81553 69679 56696 68999
CASH GENERATION BEFORE CONST 28654 25199 15105 20908 (511) (4823) 3320 15780 4851
CONST EXP - LABOR 277 277 277 277 277 277 277 277 277
CONST EXP - NON-LABOR 2825 2720 2720 2720 2720 2720 2720 2720 2720
INV NOT INCLUDED IN CONST
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 3103 2997 2997 2997 2997 2997 2997 2997 2997
INTERNAL CASH BEFORE FINANCINGS 26051 30632 42740 60651 57144 (7820) 323 13106 2354
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 500 500 500
CASH RECEIPTS:
RESIDENTIAL 24915 27111 30667 343651
COMMERCIAL 24832 25611 26440 309090
INDUSTRIAL 15584 15914 15264 177442
OTHER RETAIL 566 588 547 6371
WHOLESALE 5058 5014 5246 68305
ADDITIONAL REQUIRED
OTHER REVENUE 2878 2878 2878 34850
INTEREST INCOME 571
DIVIDENDS RECEIVED 85 381 1524
OTHER RECEIPTS 1075 1075 1075 12900
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 74993 78191 82498 954705
CASH DISBURSEMENTS:
FOSSIL FUEL 4032 4064 4246 55163
NUCLEAR FUEL 1037 4243
PURCHASED POWER 4019 4210 4169 45205
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO 22945 22865 22773 271005
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 516 10743 7742 45018
FEDERAL INCOME TAX
STATE INCOME TAX 3393
O&M LABOR 4117 4117 4117 49241
O&M NON-LABOR 10656 10656 10656 127287
INTEREST ON SHORT-TERM DEBT 593 520 540 4271
INTEREST ON LONG-TERM DEBT 414 12809 414 40491
PREFERRED DIVIDEND 1987 9275
COMMON DIVIDEND 13000 52000
MISC DISBURSEMENTS 320 320 321 3812
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT 833
SPP SETTLEMENT 7042 7653 8116 109682
COST OF REMOVAL 150 150 150 1800
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 55841 80094 76244 822720
CASH GENERATION BEFORE CONST 19151 (1903) 6254 131985
CONST EXP - LABOR 277 277 277 3326
CONST EXP - NON-LABOR 2720 2720 2720 32741
INV NOT INCLUDED IN CONST
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 2997 2997 2997 36067
INTERNAL CASH BEFORE FINANCINGS 16654 (4400) 3257 96417
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:11 pm
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (170000)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK (25000)
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (195000)
CASH BEFORE AUTOMATIC FINANCINGS 26051 30632 42740 60651 (137856) (7820) 323 13106 2354
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED 137856 7820
SHORT-TERM DEBT REPAID (17621) (12606) (1854)
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS (17621) 137856 7820 (12606) (1854)
ENDING CASH BALANCE 8430 30632 42740 60651 0 0 323 500 500
ENDING BALANCES:
---------------
CASH 500 500 500 500 () 323 500 500
TEMP CASH INVESTMENTS 7930 30132 42240 60151
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 8430 30632 42740 60651 () 323 500 500
SHORT TERM DEBT 137856 145676 145676 133070 131216
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD 8430 30632 42740 60651 (137856) (145676) (145353) (132570) (130716) (
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (170000)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK (25000)
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING (195000)
CASH BEFORE AUTOMATIC FINANCINGS 16654 (4400) 3257 (98583)
SHORT-TERM DEBT BORROWED 4400 150076
SHORT-TERM DEBT REPAID (16154) (2757) (50993)
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS (16154) 4400 (2757) 99083
ENDING CASH BALANCE 500 0 500 500
ENDING BALANCES:
---------------
CASH 500 500 500
TEMP CASH INVESTMENTS
__ ________ ________ ________ _____
TOTAL CASH BALANCE 500 500 500
SHORT TERM DEBT 115061 119461 116704 116704
__ ________ ________ ________ _____
NET CASH + TCI - STD 114561) (119461) (116204) (116204)
</TABLE>
<TABLE>
<CAPTION>
HOLYOKE WATER POWER COMPANY EXHIBIT H.5
PROJECTED MONTH ENDING SHORT-TERM DEBT LEVEL
(THOUSANDS OF DOLLARS)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1996 1996 1996 1996 1996 1996 1996 1996 1996 1996 1996 1996
ENDING SHORT-TERM DEBT (6,349) (6,558) (6,609) (6,606) (6,714) (6,682) (6,963) (7,204) (6,891) (6,557) (6,753) (5,890)
CONTINGENCIES:
(b) 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000
------------------------------------------------------------------------------------------------------------
4,651 4,442 4,391 4,394 4,286 4,318 4,037 3,796 4,109 4,443 4,247 5,110
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1997 1997 1997 1997 1997 1997 1997 1997 1997 1997 1997 1997
ENDING SHORT-TERM DEBT (5,676) (6,950) (6,955) (6,751) (7,330) (6,568) (6,637) (6,752) (6,337) (6,203) (4,709) (5,393)
CONTINGENCIES:
(b) 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000
------------------------------------------------------------------------------------------------------------
5,324 4,050 4,045 4,249 3,670 4,432 4,363 4,248 4,663 4,797 6,291 5,607
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998
ENDING SHORT-TERM DEBT (4,603) (6,472) (6,565) (6,114) (6,003) (5,811) (6,106) (6,445) (6,189) (4,356) (5,476) (5,704)
CONTINGENCIES:
(b) 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000
------------------------------------------------------------------------------------------------------------
6,397 4,528 4,435 4,886 4,997 5,189 4,894 4,555 4,811 6,644 5,524 5,296
</TABLE>
<TABLE>
<S> <C>
(a) Short-term debt levels based on the Company's Receipt and Disbursement Forecast (attached).
(b) HWP has maintained a cash position over the past year, however a contingency of $11 million was assumed to arrive at HWP's
short-term debt limit of $5 million.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
#### HOLY 1996
1Thursday, May 2, 1996 5:20:06 pm
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
BEGINNING CASH BALANCE 7055 6349 6558 6609 6606 6714 6682 6963 7204
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL 544 590 538 569 585 519 605 544 505
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE 191 60 60 60 60 60 60 60 60
INTEREST INCOME 27 25 25 25 25 25 25 25 26
DIVIDENDS RECEIVED
OTHER RECEIPTS
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 762 674 622 653 669 603 689 629 591
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL 2436 1744 1740 1692 1724 1564 1502 1775 1742
NUCLEAR FUEL
PURCHASED POWER (15) (15) (15) (10) (10) (15) (15) (15) (8)
INTERCOMPANY BILLINGS - NUGT (2903) (2751) (2717) (2878) (2676) (2541) (2879) (2888) (2484)
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 476 60 59 479 47 53 476 45 42
FEDERAL INCOME TAX 32 47 32
STATE INCOME TAX 18 18 22
O&M LABOR 306 313 304 338 331 310 327 352 307
O&M NON-LABOR 833 715 731 710 790 771 722 763 822
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 90 174 243 50 130 203 50 130 203
PREFERRED DIVIDEND
COMMON DIVIDEND
MISC DISBURSEMENTS (6) (6) (6) (6) (6) (6) (6) (6) (6)
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 12 12 12 12 12 12 12 12 12
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 1229 246 352 437 341 416 189 168 684
CASH GENERATION BEFORE CONST (466) 428 271 216 328 188 500 461 (93)
CONST EXP - LABOR 20 20 20 20 20 20 20 20 20
CONST EXP - NON-LABOR 219 199 199 199 199 199 199 199 199
INV NOT INCLUDED IN CONST
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 239 220 220 220 220 220 220 220 220
INTERNAL CASH BEFORE FINANCINGS 6349 6558 6609 6606 6714 6682 6963 7204 6891
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 6891 6557 6753 7055
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL 547 540 526 6612
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED
OTHER REVENUE 60 60 60 847
INTEREST INCOME 26 26 26 305
DIVIDENDS RECEIVED
OTHER RECEIPTS
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 633 625 611 7764
CASH DISBURSEMENTS:
FOSSIL FUEL 1457 1834 1951 21161
NUCLEAR FUEL
PURCHASED POWER (8) (11) (11) (149)
INTERCOMPANY BILLINGS - NUGT (2353) (3061) (2060) (32192)
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 491 35 21 2284
FEDERAL INCOME TAX 82 194
STATE INCOME TAX 18 75
O&M LABOR 388 372 165 3813
O&M NON-LABOR 716 904 867 9346
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 50 130 203 1656
PREFERRED DIVIDEND
COMMON DIVIDEND
MISC DISBURSEMENTS (6) (6) (6) (72)
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 12 12 12 146
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 747 210 1244 6263
CASH GENERATION BEFORE CONST (114) 415 (632) 1501
CONST EXP - LABOR 20 20 31 255
CONST EXP - NON-LABOR 199 199 199 2412
INV NOT INCLUDED IN CONST
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 220 220 231 2667
INTERNAL CASH BEFORE FINANCINGS 6557 6753 5890 5890
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:06 pm
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING
CASH BEFORE AUTOMATIC FINANCINGS 6349 6558 6609 6606 6714 6682 6963 7204 6891
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 6349 6558 6609 6606 6714 6682 6963 7204 6891
ENDING BALANCES:
---------------
CASH 209 260 256 365 333 500 500 187
TEMP CASH INVESTMENTS 6349 6349 6349 6349 6349 6349 6463 6704 6704
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 6349 6558 6609 6606 6714 6682 6963 7204 6891
SHORT TERM DEBT
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD 6349 6558 6609 6606 6714 6682 6963 7204 6891
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING
CASH BEFORE AUTOMATIC FINANCINGS 6557 6753 5890 5890
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 6557 6753 5890 5890
ENDING BALANCES:
---------------
CASH 196
TEMP CASH INVESTMENTS 6557 6557 5890 5890
__ ________ ________ ________ _____
TOTAL CASH BALANCE 6557 6753 5890 5890
SHORT TERM DEBT
__ ________ ________ ________ _____
NET CASH + TCI - STD 6557 6753 5890 5890
</TABLE>
<TABLE>
<CAPTION>
#### HOLY 1997
1Thursday, May 2, 1996 5:20:06 pm
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
BEGINNING CASH BALANCE 5890 5676 6950 6955 6751 7330 6568 6637 6752
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL 543 600 547 579 595 528 615 554 514
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED 24 47 59 62 63 64 65 64 64
OTHER REVENUE 60 60 60 60 60 60 60 60 60
INTEREST INCOME 24 23 26 26 26 27 26 26 26
DIVIDENDS RECEIVED
OTHER RECEIPTS
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 650 730 692 727 744 679 766 705 664
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL 2375 705 1746 1806 1935 1983 1813 2010 1856
NUCLEAR FUEL
PURCHASED POWER (11) (10) (11) (7) (7) (11) (11) (11) (9)
INTERCOMPANY BILLINGS - NUGT (3110) (2843) (2936) (3025) (3536) (2918) (3128) (3097) (2859)
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 496 61 60 502 49 55 500 47 43
FEDERAL INCOME TAX 123 61 38
STATE INCOME TAX 33 17 20
O&M LABOR 335 319 343 334 500 346 352 373 372
O&M NON-LABOR 385 782 743 801 780 1166 808 822 871
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 50 132 207 51 133 208 51 133 208
PREFERRED DIVIDEND
COMMON DIVIDEND 221 221 225
MISC DISBURSEMENTS (5) (5) (5) (5) (5) (5) (5) (5) (5)
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 12 12 12 12 12 12 12 12 12
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 527 (849) 381 626 (140) 1135 392 285 774
CASH GENERATION BEFORE CONST 123 1579 310 102 884 (456) 374 420 (109)
CONST EXP - LABOR 28 28 28 28 28 28 28 28 28
CONST EXP - NON-LABOR 308 277 277 277 277 277 277 277 277
INV NOT INCLUDED IN CONST
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 337 305 305 305 305 305 305 305 305
INTERNAL CASH BEFORE FINANCINGS 5676 6950 6955 6751 7330 6568 6637 6752 6337
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 6337 6203 4709 5890
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL 556 549 535 6715
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED 64 64 64 702
OTHER REVENUE 60 60 60 724
INTEREST INCOME 25 25 19 298
DIVIDENDS RECEIVED
OTHER RECEIPTS
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 706 698 678 8440
CASH DISBURSEMENTS:
FOSSIL FUEL 1611 2612 1133 21585
NUCLEAR FUEL
PURCHASED POWER (8) (11) (12) (118)
INTERCOMPANY BILLINGS - NUGT (2861) (2057) (3188) (35558)
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 514 36 22 2385
FEDERAL INCOME TAX 68 289
STATE INCOME TAX 27 97
O&M LABOR 352 346 373 4346
O&M NON-LABOR 868 820 808 9655
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 51 133 208 1566
PREFERRED DIVIDEND
COMMON DIVIDEND 242 909
MISC DISBURSEMENTS (5) (5) (5) (62)
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 12 12 12 146
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 535 1887 (311) 5242
CASH GENERATION BEFORE CONST 171 (1189) 989 3198
CONST EXP - LABOR 28 28 28 339
CONST EXP - NON-LABOR 277 277 277 3356
INV NOT INCLUDED IN CONST
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 305 305 305 3695
INTERNAL CASH BEFORE FINANCINGS 6203 4709 5393 5393
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:06 pm
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING
CASH BEFORE AUTOMATIC FINANCINGS 5676 6950 6955 6751 7330 6568 6637 6752 6337
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 5676 6950 6955 6751 7330 6568 6637 6752 6337
ENDING BALANCES:
---------------
CASH 500 500 296 500 69 183
TEMP CASH INVESTMENTS 5676 6450 6455 6455 6830 6568 6568 6568 6337
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 5676 6950 6955 6751 7330 6568 6637 6752 6337
SHORT TERM DEBT
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD 5676 6950 6955 6751 7330 6568 6637 6752 6337
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING
CASH BEFORE AUTOMATIC FINANCINGS 6203 4709 5393 5393
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 6203 4709 5393 5393
ENDING BALANCES:
---------------
CASH 500 500
TEMP CASH INVESTMENTS 6203 4709 4893 4893
__ ________ ________ ________ _____
TOTAL CASH BALANCE 6203 4709 5393 5393
SHORT TERM DEBT
__ ________ ________ ________ _____
NET CASH + TCI - STD 6203 4709 5393 5393
</TABLE>
<TABLE>
<CAPTION>
#### HOLY 1998
1Thursday, May 2, 1996 5:20:06 pm
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
BEGINNING CASH BALANCE 5393 4603 6472 6565 6114 6003 5811 6106 6445
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL 552 610 556 589 605 537 625 563 523
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED 58 52 50 49 48 48 48 48 48
OTHER REVENUE 60 64 64 64 64 64 64 64 64
INTEREST INCOME 20 19 24 25 25 24 24 24 24
DIVIDENDS RECEIVED
OTHER RECEIPTS
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 691 745 694 726 742 674 761 698 659
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL 2736 372 1830 1905 2176 1641 1689 1951 1926
NUCLEAR FUEL
PURCHASED POWER (12) (11) (11) (8) (8) (11) (11) (11) (9)
INTERCOMPANY BILLINGS - NUGT (3381) (3164) (3230) (3007) (2984) (3005) (3270) (3247) (3240)
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 520 62 62 526 50 57 523 48 45
FEDERAL INCOME TAX 13 178 192 201
STATE INCOME TAX 48 48 48
O&M LABOR 397 397 397 397 397 397 397 397 397
O&M NON-LABOR 870 926 926 926 926 926 926 926 926
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 51 134 210 52 135 211 52 135 211
PREFERRED DIVIDEND
COMMON DIVIDEND 242 250 250
MISC DISBURSEMENTS (5) (5) (5) (5) (5) (5) (4) (4) (4)
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 12 12 12 12 12 12 12 12 12
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 1189 (1276) 448 1025 700 713 313 207 762
CASH GENERATION BEFORE CONST (499) 2021 246 (298) 41 (39) 448 491 (103)
CONST EXP - LABOR 14 14 14 14 14 14 14 14 14
CONST EXP - NON-LABOR 277 138 138 138 138 138 138 138 138
INV NOT INCLUDED IN CONST
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 291 153 153 153 153 153 153 153 153
INTERNAL CASH BEFORE FINANCINGS 4603 6472 6565 6114 6003 5811 6106 6445 6189
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 6189 4356 5476 5393
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL 566 558 544 6828
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED 48 48 48 592
OTHER REVENUE 64 64 64 762
INTEREST INCOME 24 18 20 270
DIVIDENDS RECEIVED
OTHER RECEIPTS
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 702 687 676 8452
CASH DISBURSEMENTS:
FOSSIL FUEL 1927 650 1622 20425
NUCLEAR FUEL
PURCHASED POWER (8) (12) (12) (125)
INTERCOMPANY BILLINGS - NUGT (1459) (2726) (3309) (36021)
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 540 37 22 2493
FEDERAL INCOME TAX 134 718
STATE INCOME TAX 46 190
O&M LABOR 397 397 397 4763
O&M NON-LABOR 926 926 926 11057
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 52 135 211 1588
PREFERRED DIVIDEND
COMMON DIVIDEND 250 992
MISC DISBURSEMENTS (4) (4) (4) (54)
NUCLEAR DECOMMISSIONING
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL 12 12 12 146
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 2382 (585) 295 6172
CASH GENERATION BEFORE CONST (1681) 1272 381 2280
CONST EXP - LABOR 14 14 14 169
CONST EXP - NON-LABOR 138 138 138 1799
INV NOT INCLUDED IN CONST
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 153 153 153 1969
INTERNAL CASH BEFORE FINANCINGS 4356 5476 5704 5704
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:06 pm
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING
CASH BEFORE AUTOMATIC FINANCINGS 4603 6472 6565 6114 6003 5811 6106 6445 6189
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 4603 6472 6565 6114 6003 5811 6106 6445 6189
ENDING BALANCES:
---------------
CASH 500 500 49 295 500 244
TEMP CASH INVESTMENTS 4603 5972 6065 6065 6003 5811 5811 5945 5945
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 4603 6472 6565 6114 6003 5811 6106 6445 6189
SHORT TERM DEBT
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD 4603 6472 6565 6114 6003 5811 6106 6445 6189
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
HOLYOKE WATER POWER COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING
CASH BEFORE AUTOMATIC FINANCINGS 4356 5476 5704 5704
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 4356 5476 5704 5704
ENDING BALANCES:
---------------
CASH 500 500 500
TEMP CASH INVESTMENTS 4356 4976 5204 5204
__ ________ ________ ________ _____
TOTAL CASH BALANCE 4356 5476 5704 5704
SHORT TERM DEBT
__ ________ ________ ________ _____
NET CASH + TCI - STD 4356 5476 5704 5704
</TABLE>
<TABLE>
<CAPTION>
NORTH ATLANTIC ENERGY COMPANY EXHIBIT H.6
PROJECTED MONTH ENDING SHORT-TERM DEBT LEVEL
(THOUSANDS OF DOLLARS)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1996 1996 1996 1996 1996 1996 1996 1996 1996 1996 1996 1996
ENDING SHORT-TERM DEBT (9,209) (16,930) (15,513) (28,530) (36,891) (1,203) (10,548) (19,794) (23,935) (32,796) (42,080) (27,707)
CONTINGENCIES:
(b) 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
(c) 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000
------------------------------------------------------------------------------------------------------------
30,791 23,070 24,487 11,470 3,109 38,797 29,452 20,206 16,065 7,204 (2,080) 12,293
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1997 1997 1997 1997 1997 1997 1997 1997 1997 1997 1997 1997
ENDING SHORT-TERM DEBT (36,384) (44,874) (37,120) (36,923) (45,470) (7,098) (15,973) (23,800) (22,237) (30,972) (40,603) (29,368)
CONTINGENCIES:
(b) 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
(c) 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000
------------------------------------------------------------------------------------------------------------
3,616 (4,874) 2,880 3,077 (5,470) 32,902 24,027 16,200 17,763 9,028 (603) 10,632
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998
ENDING SHORT-TERM DEBT (47,938) (64,501) (67,697) (78,779) (95,266) (57,819) (75,262) (92,794) (94,525)(111,583)(128,822)(113,508)
CONTINGENCIES:
(b) 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
(c) 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000
------------------------------------------------------------------------------------------------------------
(7,938) (24,501) (27,697) (38,779) (55,266) (17,819) (35,262) (52,794) (54,525) (71,583) (88,822) (73,508)
</TABLE>
<TABLE>
<S> <C>
(a) Short-term debt levels based on the Company's Receipt and Disbursements Forecast (attached).
(b) Contingeny based on an estimate of average monthly variances of actual high and low cash balances between June 1995-June 1996,
calculated to be approximately $10 million.
(c) Includes an estimated $30 million contingency to refinance the $225 million, five-year NAEC bank term loan.
</TABLE>
<TABLE>
<CAPTION>
#### NAEC 1996
1Thursday, May 2, 1996 5:20:16 pm
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
BEGINNING CASH BALANCE 11585 9209 16930 15513 28530 36891 1203 10548 19794
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED (360)
OTHER REVENUE
INTEREST INCOME 10 34 64 61 109 142 5 39 75
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS FROM ASSOC. COS 13313 12535 12521 13090 13002 13895 13972 13969 14086
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 12963 12569 12585 13151 13111 14037 13977 14008 14161
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL 265 294 313 256 313 304 265 313 304
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 142 143 128 1466 117 5524 118 116 89
FEDERAL INCOME TAX (5765) (5206) (4169)
STATE INCOME TAX 160
O&M LABOR 1078 1080 1005 1016 1136 1024 1044 1082 1001
O&M NON-LABOR 5039 2516 2520 2346 2370 2650 2390 2436 2524
INTEREST ON SHORT-TERM DEBT 35
INTEREST ON LONG-TERM DEBT 3562 19113 3955
PREFERRED DIVIDEND
COMMON DIVIDEND 5500 5500 5500
MISC DISBURSEMENTS 63 63 63 63 63 64 64 64 64
NUCLEAR DECOMMISSIONING 285 285 285 285 285 285 285 285 285
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 6914 4388 13542 (326) 4291 29264 4173 4302 9560
CASH GENERATION BEFORE CONST 6049 8181 (957) 13477 8820 (15228) 9804 9706 4601
CONST EXP - LABOR 43 43 43 43 43 43 43 43 43
CONST EXP - NON-LABOR 383 417 417 417 417 417 417 417 417
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 426 460 460 460 460 460 460 460 460
INTERNAL CASH BEFORE FINANCINGS 17209 16930 15513 28530 36891 21203 10548 19794 23935
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 23935 32796 42080 11585
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED (360)
OTHER REVENUE
INTEREST INCOME 91 126 162 918
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS FROM ASSOC. COS 13720 13783 13828 161714
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 13811 13909 13990 162272
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL 681 304 313 3925
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 79 88 4368 12377
FEDERAL INCOME TAX (4199) (19339)
STATE INCOME TAX 32 192
O&M LABOR 1039 994 1005 12505
O&M NON-LABOR 2337 2423 2320 31872
INTEREST ON SHORT-TERM DEBT 35
INTEREST ON LONG-TERM DEBT 18209 44838
PREFERRED DIVIDEND
COMMON DIVIDEND 5500 22000
MISC DISBURSEMENTS 64 64 64 764
NUCLEAR DECOMMISSIONING 285 285 285 3420
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 4491 4166 27903 112669
CASH GENERATION BEFORE CONST 9320 9743 (13913) 49603
CONST EXP - LABOR 43 43 43 510
CONST EXP - NON-LABOR 417 417 417 4971
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 460 460 460 5481
INTERNAL CASH BEFORE FINANCINGS 32796 42080 27707 55707
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:16 pm
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1996 1996 1996 1996 1996 1996 1996 1996 1996
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (20000)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (20000)
CASH BEFORE AUTOMATIC FINANCINGS 17209 16930 15513 28530 36891 1203 10548 19794 23935
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID (8000)
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS (8000)
ENDING CASH BALANCE 9209 16930 15513 28530 36891 1203 10548 19794 23935
ENDING BALANCES:
---------------
CASH 500 500 500 500 500 500 500
TEMP CASH INVESTMENTS 8709 16430 15513 28030 36391 1203 10048 19294 23435
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 9209 16930 15513 28530 36891 1203 10548 19794 23935
SHORT TERM DEBT
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD 9209 16930 15513 28530 36891 1203 10548 19794 23935
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1996 1996 1996 1996
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (20000)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING (20000)
CASH BEFORE AUTOMATIC FINANCINGS 32796 42080 27707 35707
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID (8000)
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS (8000)
ENDING CASH BALANCE 32796 42080 27707 27707
ENDING BALANCES:
---------------
CASH 500 500
TEMP CASH INVESTMENTS 32296 41580 27707 27707
__ ________ ________ ________ _____
TOTAL CASH BALANCE 32796 42080 27707 27707
SHORT TERM DEBT
__ ________ ________ ________ _____
NET CASH + TCI - STD 32796 42080 27707 27707
</TABLE>
<TABLE>
<CAPTION>
#### NAEC 1997
1Thursday, May 2, 1996 5:20:16 pm
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
BEGINNING CASH BALANCE 27707 36384 44874 37120 36923 45470 7098 15973 23800
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED 592 633 435 592 224 249 2458 2323 113
OTHER REVENUE
INTEREST INCOME 111 143 177 148 147 180 28 62 93
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS FROM ASSOC. COS 14196 12535 12521 13090 13002 13895 13972 13969 14086
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 14899 13311 13133 13830 13373 14324 16458 16354 14292
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL 1844 285 4698 11536 313 304 1844 313 730
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 149 150 146 1468 112 5666 270 273 130
FEDERAL INCOME TAX 621 (3367) (2894) (2828)
STATE INCOME TAX 82
O&M LABOR 1049 1048 1049 1052 1056 1055 2116 2112 1048
O&M NON-LABOR 2344 2447 2446 2447 2454 2465 2461 4938 4927
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 3955 18209 3955
PREFERRED DIVIDEND
COMMON DIVIDEND 7000 7000 7000
MISC DISBURSEMENTS 66 66 66 66 66 66 66 67 67
NUCLEAR DECOMMISSIONING 297 297 297 297 297 297 297 297 297
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 5755 4300 20365 13506 4305 32174 7061 8006 15333
CASH GENERATION BEFORE CONST 9143 9011 (7232) 324 9069 (17851) 9397 8348 (1041)
CONST EXP - LABOR 48 48 48 48 48 48 48 48 48
CONST EXP - NON-LABOR 418 473 473 473 473 473 473 473 473
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 466 521 521 521 521 521 521 521 521
INTERNAL CASH BEFORE FINANCINGS 36384 44874 37120 36923 45470 27098 15973 23800 22237
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 22237 30972 40603 27707
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED (165) 457 5700 13611
OTHER REVENUE
INTEREST INCOME 89 122 160 1460
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS FROM ASSOC. COS 13720 13783 13828 162597
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 13644 14362 19688 177668
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL 411 231 313 22822
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 112 110 4556 13142
FEDERAL INCOME TAX (3462) (11930)
STATE INCOME TAX 82
O&M LABOR 1049 1049 1049 14731
O&M NON-LABOR 2446 2447 2448 34271
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 17304 43422
PREFERRED DIVIDEND
COMMON DIVIDEND 7000 28000
MISC DISBURSEMENTS 67 67 890 1619
NUCLEAR DECOMMISSIONING 297 297 297 3564
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 4388 4208 30401 149804
CASH GENERATION BEFORE CONST 9256 10153 (10713) 27864
CONST EXP - LABOR 48 48 48 579
CONST EXP - NON-LABOR 473 473 473 5624
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 521 521 521 6203
INTERNAL CASH BEFORE FINANCINGS 30972 40603 29368 49368
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:16 pm
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1997 1997 1997 1997 1997 1997 1997 1997 1997
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (20000)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (20000)
CASH BEFORE AUTOMATIC FINANCINGS 36384 44874 37120 36923 45470 7098 15973 23800 22237
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 36384 44874 37120 36923 45470 7098 15973 23800 22237
ENDING BALANCES:
---------------
CASH 500 500 500 500 500
TEMP CASH INVESTMENTS 35884 44374 37120 36923 44970 7098 15473 23300 22237
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 36384 44874 37120 36923 45470 7098 15973 23800 22237
SHORT TERM DEBT
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD 36384 44874 37120 36923 45470 7098 15973 23800 22237
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1997 1997 1997 1997
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (20000)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING (20000)
CASH BEFORE AUTOMATIC FINANCINGS 30972 40603 29368 29368
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 30972 40603 29368 29368
ENDING BALANCES:
---------------
CASH 500 500
TEMP CASH INVESTMENTS 30472 40103 29368 29368
__ ________ ________ ________ _____
TOTAL CASH BALANCE 30972 40603 29368 29368
SHORT TERM DEBT
__ ________ ________ ________ _____
NET CASH + TCI - STD 30972 40603 29368 29368
</TABLE>
<TABLE>
<CAPTION>
#### NAEC 1998
1Thursday, May 2, 1996 5:20:16 pm
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
BEGINNING CASH BALANCE 29368 47938 64501 67697 78779 95266 57819 75262 92794
CASH RECEIPTS
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED 9984 9798 9591 9496 9151 9037 9157 9242 9225
OTHER REVENUE
INTEREST INCOME 119 193 260 273 318 385 235 304 375
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS FROM ASSOC. COS 14196 12535 12521 13090 13002 13895 13972 13969 14086
RESERVES FROM SWAP
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL RECEIPTS 24299 22526 22372 22859 22471 23317 23364 23515 23686
CASH DISBURSEMENTS
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL 278 304 332 268 332 322 278 332 322
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 144 143 162 1484 135 5843 126 134 125
FEDERAL INCOME TAX 2241 3642 3912 4042
STATE INCOME TAX (31) 867 867 995
O&M LABOR 1132 1132 1132 1132 1132 1132 1132 1132 1132
O&M NON-LABOR 2447 2642 2642 2642 2642 2642 2642 2642 2642
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 3955 17304 3955
PREFERRED DIVIDEND
COMMON DIVIDEND 7000 7000 7000
MISC DISBURSEMENTS 890 890 891 891 891 891 891 891 891
NUCLEAR DECOMMISSIONING 308 308 308 308 308 308 308 308 308
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL OPERATING DISBURSEMENT 5206 5426 18639 11240 5447 40227 5384 5446 21419
CASH GENERATION BEFORE CONST 19093 17100 3733 11619 17024 (16910) 17980 18069 2268
CONST EXP - LABOR 50 50 50 50 50 50 50 50 50
CONST EXP - NON-LABOR 473 487 487 487 487 487 487 487 487
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CONSTR EXPENDITURES 523 537 537 537 537 537 537 537 537
INTERNAL CASH BEFORE FINANCINGS 47938 64501 67697 78779 95266 77819 75262 92794 94525
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
BEGINNING CASH BALANCE 94525 111583 128822 29368
CASH RECEIPTS:
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
OTHER RETAIL
WHOLESALE
ADDITIONAL REQUIRED 9082 8945 10209 112917
OTHER REVENUE
INTEREST INCOME 382 452 522 3820
DIVIDENDS RECEIVED
OTHER RECEIPTS
PAYMENTS FROM ASSOC. COS 13720 13783 13828 162597
RESERVES FROM SWAP
__ ________ ________ ________ _____
TOTAL RECEIPTS 23184 23180 24559 279334
CASH DISBURSEMENTS:
FOSSIL FUEL
NUCLEAR FUEL 501 322 332 3923
PURCHASED POWER
INTERCOMPANY BILLINGS - NUGT
INTERCOMPANY BILLINGS - NAECO
INTERCOMPANY BILLINGS - IRREG
OTHER TAXES 108 102 4729 13236
FEDERAL INCOME TAX 4825 18662
STATE INCOME TAX 1071 3769
O&M LABOR 1132 1132 1132 13585
O&M NON-LABOR 2641 2641 2641 31505
INTEREST ON SHORT-TERM DEBT
INTEREST ON LONG-TERM DEBT 16399 41612
PREFERRED DIVIDEND
COMMON DIVIDEND 7000 28000
MISC DISBURSEMENTS 892 892 892 10693
NUCLEAR DECOMMISSIONING 308 308 308 3696
MMWEC SETTLEMENT
SPP SETTLEMENT
COST OF REMOVAL
__ ________ ________ ________ _____
TOTAL OPERATING DISBURSEMENT 5588 5404 39336 168763
CASH GENERATION BEFORE CONST 17596 17776 (14777) 110571
CONST EXP - LABOR 50 50 50 596
CONST EXP - NON-LABOR 487 487 487 5836
INV NOT INCLUDED IN CONSTR
__ ________ ________ ________ _____
TOTAL CONSTR EXPENDITURES 537 537 537 6432
INTERNAL CASH BEFORE FINANCINGS 111583 128822 113508 133508
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996 5:20:16 pm
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Jan Feb Mar Apr May Jun Jul Aug Sep
1998 1998 1998 1998 1998 1998 1998 1998 1998
PLANNED FINANCINGS
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (20000)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET PLANNED FINANCING (20000)
CASH BEFORE AUTOMATIC FINANCINGS 47938 64501 67697 78779 95266 57819 75262 92794 94525
AUTOMATIC FINANCINGS
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 47938 64501 67697 78779 95266 57819 75262 92794 94525
ENDING BALANCES:
---------------
CASH 500 500 500 500 500 500 500 500
TEMP CASH INVESTMENTS 47438 64001 67197 78279 94766 57819 74762 92294 94025
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
TOTAL CASH BALANCE 47938 64501 67697 78779 95266 57819 75262 92794 94525
SHORT TERM DEBT
__ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ _________
NET CASH + TCI - STD 47938 64501 67697 78779 95266 57819 75262 92794 94525
</TABLE>
<TABLE>
<CAPTION>
1Thursday, May 2, 1996
NORTH ATLANTIC ENERGY COMPANY
RECEIPTS AND DISBURSEMENTS
REVISED 1996 FORECAST - CASE 2 - NEGATIVE SCENARIO
Oct Nov Dec Year
1998 1998 1998 1998
<S> <C> <C> <C> <C>
FIRST MORTGAGE BONDS
OTHER LONG-TERM DEBT
PREFERRED STOCK
COMMON STOCK ISSUE
CAPITAL CONTR TO SUBS
CASH RETIREMENTS-LTD (20000)
CASH RETIREMENTS-COMMON STK
CASH RETIREMENTS-PFD STK
CASH RETIREMENTS-PRIOR SPENT F
FINANCING EXPENSE
__ ________ ________ ________ _____
NET PLANNED FINANCING (20000)
CASH BEFORE AUTOMATIC FINANCINGS 111583 128822 113508 113508
SHORT-TERM DEBT BORROWED
SHORT-TERM DEBT REPAID
__ ________ ________ ________ _____
NET AUTOMATIC FINANCINGS
ENDING CASH BALANCE 111583 128822 113508 113508
ENDING BALANCES:
---------------
CASH 500 500
TEMP CASH INVESTMENTS 111083 128322 113508 113508
__ ________ ________ ________ _____
TOTAL CASH BALANCE 111583 128822 113508 113508
SHORT TERM DEBT
__ ________ ________ ________ _____
NET CASH + TCI - STD 111583 128822 113508 113508
</TABLE>
<PAGE>
EXHIBIT I
PROPOSED FORM OF NOTICE
(Release No. 35-_____; 70-_____)
APPLICATION WITH RESPECT TO (1) PROPOSED REVOLVING CREDIT FACILITY FOR
NORTHEAST UTILITIES ("NU"), THE CONNECTICUT LIGHT AND POWER COMPANY ("CL&P")
AND WESTERN MASSACHUSETTS ELECTRIC COMPANY ("WMECO") AND (2) INCREASES AND
EXTENSIONS OF SHORT-TERM BORROWING LIMITS OF NU, CL&P, WMECO, PUBLIC SERVICE
COMPANY OF NEW HAMPSHIRE, HOLYOKE WATER POWER COMPANY AND NORTH ATLANTIC
ENERGY CORPORATION
UNDER
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
_________________, 1996
Northeast Utilities ("NU"), a public utility holding company registered
under the Public Utility Holding Company Act of 1935, as amended (the "Act"),
and The Connecticut Light & Power Company ("CL&P"), Western Massachusetts
Electric Company ("WMECO"), Public Service Company of New Hampshire ("PSNH"),
Holyoke Water Power Company ("HWP") and North Atlantic Energy Corporation
("NAEC"), each of which is a wholly-owned subsidiary of NU (the "Applicants"),
have filed an application/declaration (the "Application") with this Commission
pursuant to Sections 6(a), 7, 9(a), 10 and 12 of the Act and Rules 43 and 45
thereunder. NU and WMECO are located at 174 Brush Hill Avenue, West
Springfield, Massachusetts 01090-0010, CL&P is located at 107 Selden Street,
Berlin, Connecticut 06037, PSNH and NAEC are located at 1000 Elm Street,
Manchester, NH 03105 and HWP is located at Canal Street, Holyoke, MA 01040.
Authorization is requested at this time for the Applicants to enter into
a revolving credit facility (the "Facility") aggregating up to $450 million
with certain lending institutions and for the borrowers to issue notes in
connection therewith. Each of the Applicants will have its own maximum
borrowing limit under the Facility as follows: NU ($200 million), CL&P ($375
million) and WMECO ($150 million). The Facility will be used to repay
outstanding borrowings and for working capital and other corporate purposes.
The Facility will be unsecured unless, subject to some exceptions, an
Applicant incurs any secured indebtedness or secures any outstanding
indebtedness which is now unsecured in which event such Applicant must cause
the Facility to be secured equally and ratably with such other indebtedness.
Although the Applicants state that they expect most banks wanting to continue
to lend to the Applicants will do so under the new Facility, it is possible
that one or more of the banks which lend to the Applicants and other
NU subsidiaries under the existing revolving credit agreements may want
to continue their present lending arrangements.
The Applicants will pay interest on any borrowings under the facility at
a rate determined, at their election, by reference to the base rate of certain
reference banks, the federal funds rate, or the London interbank offering
rate ("LIBOR"), in each case plus a margin which will depend on the lower
of the Standard & Poor's or Moody's rating of the borrowing Applicant's
long-term senior debt. In no event will the margin exceed 1% above the
base rate, 1 1/2 % above the federal fund rate, or 2% above LIBOR, unless
the Loan is in default. The Borrowers will pay an annual facility fee based
on each lender's pro-rata share of the commitment, whether used or unused.
The amount of the fee will depend on the credit rating of the borrowing
applicant but will not exceed .75%
In addition, the Applicants request an increase and extension to
December 31, 2000 of their maximum short-term borrowing limit authorization,
as previously approved by the Commission. These increases and extensions
will enable the Applicants to meet their working capital and other
corporate needs.
By order of the Commission dated December 28, 1994 (HCA Rel. No. 26207)
(the "December 1994 Order"), the Commission authorized, through December 31,
1996: (i) NU to make open account advances to its subsidiary companies; (ii)
the continuation of the Northeast Utilities System Money Pool (the "Money
Pool"); (iii) the issuance of short-term notes pursuant to lines of credit by
NU, WMECO, CL&P, PSNH and HWP; and (iv) the issuance and sale of commercial
paper by NU, CL&P and WMECO. The funds from those short-term borrowings
were to be utilized by NU's subsidiary companies for operational, maintenance
and construction expenses and to meet certain cash needs. The December 1994
Order limited the aggregate amount of all short-term borrowing, whether through
the issuance of short-term notes, commercial paper, open account advances,
borrowing from the Money Pool, or through existing revolving credit agreements,
to the following maximum amounts: NU, $150 million; WMECO, $60 million; CL&P,
$325 million; PSNH, $175 million; NAEC, $50 million and HWP, $5 million.
The Applicants now propose: (1) to make short-term borrowings from time
to time after the date of the Commission's authorization pursuant to the
Application through December 31, 2000, evidenced (i) in the case of NU, CL&P,
WMECO and PSNH by short-term notes ("Short-Term Notes") issued to lending
institutions through formal and informal credit lines, and (ii) in the case of
NU, WMECO and CL&P, by commercial paper ("Commercial Paper"); (2) the
continued use, through December 31, 2000, of the Money Pool to assist in
meeting the short-term borrowing needs of the Applicants and certain other
NU subsidiaries; (3) in the case of all Applicants by borrowing under the
existing revolving credit agreements until those agreements are terminated;
and (4) that NU make open account advances, through December 31, 2000, to PSNH,
Northeast Nuclear Energy Company ("NNECO"), NAEC, The Quinnehtuk Company
("Quinnehtuk"), Rocky River Realty Company ("RR") and HEC, Inc. ("HEC").
The aggregate amount of all short-term borrowings through December 31,
2000, whether through the issuance of Short-Term Notes, Commercial Paper or
borrowings from the Money Pool or revolving credit facilities or pursuant to
open account advances, will not exceed $200 million for NU, $375 million for
CL&P, $150 million for WMECO, $225 million for PSNH, $5 million for HWP, and
$50 million for NAEC.
Each of the Applicants, except for HWP and NAEC, proposes to issue
Short-Term Notes. Short-Term Notes will be issued both on a transactional
basis ("Transactional Notes"), with a separate note evidencing each loan, and
on a "grid-note" basis ("Grid Notes"). Each Transactional Note will be dated
the date of issue, will have a maximum term of 270 days, and will bear interest
at a fixed or floating rate, as described below. Transactional Notes will be
issued no later than December 31, 2000, and will, with certain exceptions as
described below, be subject to prepayment at any time at the borrower's option.
Grid Notes will be issued to a particular lending institution at or
prior to the first borrowing under the Grid Note from that lender. Each
repayment and reborrowing subsequent to the first borrowing will be recorded on
a schedule to the note without the necessity of issuing additional notes. Also
recorded on a schedule to the Grid Note at the time of a borrowing will be
the date of the borrowing, the maturity (which may not exceed 270 days from the
date of the borrowing), the number of days the borrowing is outstanding, the
interest rate or method of determining the interest rate, the amount of
interest due, and the date of the payment. Except as described below,
borrowings on a Grid Note basis will be subject to prepayment at any time at
the borrower's option.
The interest rate on all Short-Term Notes will be determined on the
basis of competitive quotations from several lending institutions, and will
either be at a fixed interest rate or a floating interest rate determined with
reference to an agreed-upon index (such as a lending institution's prime rate,
LIBOR, certificate of deposit rates, money market rates or commercial paper
rates). The interest rate in any case will not exceed two percentage points
above the Federal Funds Effective Rate. The Applicants will select the lending
institution(s) from which to make a particular short-term borrowing and
determine whether to borrow at a fixed or a floating rate on the basis of the
lowest expected effective interest cost for borrowings of comparable sizes and
maturities.
Borrowings bearing floating interest rates will generally be subject to
prepayment at the borrower's option. In order to realize the benefits of fixed
interest rates when a fixed-rate borrowing is evaluated to be the lowest cost
borrowing available, the Applicants may from time to time agree with individual
lenders that such borrowings may not be prepaid or may only be prepaid if the
lender is made whole for its losses (including lost profits) as a result of the
prepayment.
The Applicants (other than HWP and NAEC) propose to secure both formal
and informal credit lines with a number of lending institutions. Formal credit
lines may be subject to compensating balance and/or fee requirements and will
therefore be used only when an Applicant determines that such a credit line
offers advantages as compared with other available credit options.
Compensating balance requirements will not exceed 5% of the committed credit
line amount, and fees will not exceed 0.30% per annum. Each Applicant
participating in a credit line would be able to draw funds to the exclusion of
the other Applicants. The Applicants may change their credit lines and may
obtain additional lines over time. The continued availability of such credit
lines is subject to the continuing review of the lending institutions.
CL&P, WMECO and NU propose to continue to sell Commercial Paper
publicly. Such Commercial Paper will be issued through The Depository Trust
Company in the form of book entry notes in denominations of not less than
$50,000, of varying maturities, with no maturity more than 270 days after the
date of issue. The Commercial Paper will not be repayable prior to maturity.
The Commercial Paper will be sold through a placement agent or agents in a co-
managed commercial paper program at either the discount rate per annum or the
interest rate per annum prevailing at the date of issuance for commercial paper
of comparable quality and of the particular maturity sold by public utility
issuers thereof. No Commercial Paper will be issued unless the issuing
Applicant believes that the effective interest cost to the Applicant will be
equal to or less than the effective interest rate at which the Applicant could
issue Short-Term Notes in an amount at least equal to the principal amount of
such Commercial Paper. The placement agent or agents will receive a commission
for the sale of the Commercial Paper of not more than 1/8 of 1% per annum on a
discounted basis. CL&P and WMECO will publicly issue and sell Commercial Paper
without registration thereof in reliance upon the exemption set forth in
Section 3(a)(3) of the Securities Act of 1933 (the "1933 Act"). NU will
publicly issue and sell commercial paper without registration thereof in
reliance upon the exemption set forth in Section 4(2) of the 1933 Act and
Regulation D thereunder.
The Applicants also propose the continued use, through December 31,
2000, of the Money Pool, which is composed of available funds loaned by the
participating subsidiaries and borrowed by those subsidiaries to assist in
meeting their respective short-term borrowing needs. Another potential
component of the Money Pool is funds borrowed by NU through the issuance
of Short-Term Notes, by selling Commercial Paper or by borrowing through the
Facility (or existing revolving credit agreements if all are not terminated
when the new Facility becomes effective) for the purpose of making open account
advances through loans through the Money Pool. NU requests that its authority
for such borrowings be extended through December 31, 2000. The amounts to be
borrowed by NU for the purpose of making open account advances and to be
borrowed through the Money Pool by the recipients set forth above will also be
subject to the short-term limits on aggregate amount outstanding for which
approval is sought in this filing.
All borrowings from and contributions to the Money Pool, including the
open account advances, will be documented and will be evidenced on the books of
each Applicant that is borrowing from or contributing surplus funds to the
Money Pool. Except for loans from the proceeds of external borrowings by NU,
all loans made under the Money Pool will bear interest for both the borrower
and lender, payable monthly, equal to the daily Federal Funds Effective
Rate as quoted by the Federal Reserve Bank of New York. Loans from the
proceeds of external borrowings by NU will bear interest at the same rate paid
by NU on the borrowings, and no such loans may be prepaid (unless NU is made
whole for any additional costs that may be incurred because of such
prepayment). To the extent that there are any excess funds available in the
Money Pool, such funds will be invested with the earnings allocated on a pro
rata basis.
The Applicants state that they intend to request the Commission's
approval, pursuant to the Application, of all transactions described therein,
whether under the enumerated sections of the Act and the rules thereunder or
otherwise. The Applicants also state that NNECO, Quinnehtuk, RR and HEC are
exempt from the Act by virtue of Rule 52 thereunder.
The Application and any amendments thereto are available for public
inspection through the Commission's Office of Public Reference. Any interested
persons wishing to comment or request a hearing on the Application should
submit their views in writing by ________, 1996, to the Secretary, Securities
and Exchange Commission, Washington, D.C. 20549, and serve a copy on the
Applicants at the addresses specified above. Proof of service (by affidavit
or, in the case of an attorney at law, by certificate) should be filed with the
request. Any request for hearing shall identify specifically the issues of
fact or law that are disputed. A person who so requests will be notified of
any hearing, if ordered, and will receive a copy of any notice or order issued
in this matter. After said date, the Application, as field or as it may be
further amended, may be granted.
For the Commission, by the Division of Investment Management, pursuant
to delegated authority.
__________________________
Secretary
<TABLE>
<CAPTION>
EXHIBIT J.1
THE CONNECTICUT LIGHT AND POWER COMPANY
20% UNSECURED DEBT CALCULATION TEST
31-Mar-96
-($000)-
<S> <C>
ACTUAL
Common Equity $1,514,893
Preferred Stock: Non-Redeemable 116,200
Redeemable 155,000
Total First Mortgage Bonds 1,297,245
Total Other Secured Long-Term Debt 315,500
Unamortized Debt Discount and Premium (7,164)
3,391,674
X 20% Unsecured Debt Limit 678,335
Less Unsecured Debt:
Seabrook Pollution Control Bonds 46,400
CRRA Financing 20,179
Other - Montville /Hopmeadow 103
MIPS 100,000
Money Pool 0
Commercial Paper 0
Bank Borrowings 0
166,682
Additional Available Unsecured Debt 511,653
Add Back Short-Term Debt
Outstanding on 3/31/96 0
Total Available Short-Term Debt $511,653
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT J.2
WESTERN MASSACHUSETTS ELECTRIC COMPANY
20% UNSECURED DEBT CALCULATION TEST
31-Mar-96
-($000)-
ACTUAL
<S> <C>
Common Equity $290,261
Preferred Stock - Non Redeemable 53,500
- Redeemable 21,000
Total First Mortgage Bonds 259,500
Total Other Secured Long-Term Debt 53,800
Unamortized Debt Discount and Premium (987)
677,074
X 20% Unsecured Debt Limit 135,415
Less Unsecured Debt:
Money Pool 13,050
Bank Borrowings 0
13,050
Additional Available Unsecured Debt 122,365
Add Back Short-Term Debt
Outstanding on 3/31/96 13,050
Total Available Short-Term Debt $135,415
</TABLE>
NORTHEAST UTILITIES (PARENT)
BALANCE SHEET
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 1.1 PAGE 1 OF 2
<TABLE>
<CAPTION>
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOK ADJUSTMENTS* TRANSACTION
<S> <C> <C> <C>
ASSETS
OTHER PROPERTY AND INVESTMENTS:
INVESTMENTS IN SUBSIDIARY COMPANIES,
AT EQUITY $2,698,522 ($26,564)(d) $2,671,958
INVESTMENTS IN TRANSMISSION
COMPANIES, AT EQUITY 23,262 23,262
OTHER, AT COST 269 269
------------------------------------------------
TOTAL OTHER PROPERTY & INVESTMENTS 2,722,053 (26,564) 2,695,489
CURRENT ASSETS:
CASH AND SPECIAL DEPOSITS 20 160,000 (a) 160,020
NOTES RECEIVABLE FROM AFFILIATED CO'S 925 925
NOTES AND ACCOUNTS RECEIVABLES 0 0
ACCOUNTS RECEIVABLE FROM AFFILIATES 660 660
PREPAYMENTS 97 97
------------------------------------------------
TOTAL CURRENT ASSETS 1,702 160,000 161,702
------------------------------------------------
DEFERRED CHARGES:
ACCUMULATED DEFERRED INCOME TAXES 6,873 6,873
UNAMORTIZED DEBT EXPENSE 0 0
OTHER 365 365
------------------------------------------------
TOTAL DEFERRED CHARGES 7,238 0 7,238
------------------------------------------------
TOTAL ASSETS $2,730,993 $133,436 $2,864,429
*EXPLANATION AT FINANCIAL STATEMENT 1.2 PAGE 3 OF 3
</TABLE>
NORTHEAST UTILITIES (PARENT)
BALANCE SHEET
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 1.1 PAGE 2 OF 2
<TABLE>
<CAPTION>
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOK ADJUSTMENTS* TRANSACTION
CAPITALIZATION AND LIABILITIES
<S> <C> <C> <C>
CAPITALIZATION:
COMMON SHARES $680,259 $680,259
CAPITAL SURPLUS, PAID IN 944,965 944,965
DEFERRED BENEFIT PLAN - ESOP (193,837) (193,837)
RETAINED EARNINGS 1,016,660 (32,815) 983,845
------------------------------------------------
TOTAL COMMON STOCKHOLDER'S EQUITY 2,448,047 (32,815) 2,415,232
LONG-TERM DEBT, NET 204,000 204,000
------------------------------------------------
TOTAL CAPITALIZATION 2,652,047 (32,815) 2,619,232
200
CURRENT LIABILITIES:
NOTES PAYABLE TO BANK 40,000 160,000 (a) 200,000
ACCOUNTS PAYABLE 14,954 14,954
ACCOUNTS PAYABLE TO AFFILIATED CO'S 192 192
CURRENT PORTION OF LONG-TERM DEBT 14,000 14,000
ACCRUED TAXES 4,148 (3,366)(c) 782
ACCRUED INTEREST 5,133 9,616 (b) 14,749
OTHER 6 6
-------------------------- -------------------
TOTAL CURRENT LIABILITIES 78,433 166,250 244,683
DEFERRED CREDITS:
OTHER 513 513
------------------------------------------------
TOTAL DEFERRED CREDITS 513 0 513
------------------------------------------------
TOTAL CAPITALIZATION AND
LIABILITIES $2,730,993 $133,436 $2,864,429
*EXPLANATION AT FINANCIAL STATEMENT 1.2 PAGE 3 OF 3
</TABLE>
NORTHEAST UTILITIES (PARENT)
INCOME STATEMENT
FOR 12 MONTHS ENDED MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 1.2 PAGE 1 OF 3
<TABLE>
<CAPTION>
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOK ADJUSTMENTS* TRANSACTION
<S> <C> <C> <C>
OPERATING REVENUE $0 $0 $0
------------------------------------------------
OPERATING EXPENSES:
OPERATION EXPENSE 12,257 12,257
FEDERAL AND STATE INCOME TAXES (8,471) (3,366)(c) (11,837)
TAXES OTHER THAN INCOME TAXES 30 30
------------------------------------------------
TOTAL OPERATING EXPENSES 3,816 (3,366) 450
------------------------------------------------
OPERATING INCOME (3,816) 3,366 (450)
------------------------------------------------
OTHER INCOME:
EQUITY IN EARNINGS OF SUBSIDIARIES 286,332 (26,564)(d) 259,768
EQUITY IN EARNINGS OF TRANSMISSION
COMPANIES 3,693 3,693
OTHER, NET 242 242
------------------------------------------------
OTHER INCOME, NET 290,267 (26,564) 263,703
------------------------------------------------
INCOME BEFORE INTEREST CHARGES 286,451 (23,199) 263,252
------------------------------------------------
INTEREST CHARGES:
INTEREST ON LONG-TERM DEBT 19,435 19,435
OTHER INTEREST 5,364 9,616 (b) 14,980
------------------------------------------------
TOTAL INTEREST CHARGES 24,799 9,616 34,415
------------------------------------------------
NET INCOME 261,652 (32,815) 228,837
------------------------------------------------
EARNINGS FOR COMMON SHARES 261,652 (32,815) 228,837
EARNINGS PER COMMON SHARE 2.07 1.81
COMMON SHARES OUTSTANDING (AVERAGE) 126,704,283 126,704,283
*EXPLANATION AT FINANCIAL STATEMENT 1.2 PAGE 3 OF 3
</TABLE>
NORTHEAST UTILITIES (PARENT)
CAPITAL STRUCTURE AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 1.2 PAGE 2 OF 3
<TABLE>
<CAPTION>
PER BOOK
ADJUSTED TO
PRO FORMA REFLECT
% PER BOOK ADJUSTMENT PRO FORMA %
<S> <C> <C> <C> <C> <C>
DEBT:
LONG-TERM DEBT, NET $218,000 $218,000
------------------------------------------------
TOTAL DEBT 8.2% 218,000 0 218,000 8.3%
COMMON EQUITY:
COMMON SHARES 680,259 680,259
CAPITAL SURPLUS, PAID IN 944,965 944,965
DEFERRED BENEFIT PLAN - ESOP (193,837) (193,837)
RETAINED EARNINGS 1,016,660 (32,815) 983,845
------------------------------------------------
TOTAL COMMON STOCKHOLDER'S EQUITY 91.8% 2,448,047 (32,815) 2,415,232 91.7%
------------------------------------------------
TOTAL CAPITAL 100.0% $2,666,047 (32,815) $2,633,232 100.0%
</TABLE>
NORTHEAST UTILITIES (PARENT)
EXPLANATION OF ADJUSTMENTS
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 1.2 PAGE 3 OF 3
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
DEBIT CREDIT
(a) CASH $160,000
NOTES PAYABLE $160,000
To record the additional proposed borrowing up to the entire $200 million available to the company.
(b) OTHER INTEREST EXPENSE 9,616
ACCRUED INTEREST 9,616
To record the interest expense on the additional proposed borrowing at LIBOR as of 6/10/96 [5.46%] + 0.55%:
$160,000 x 6.01% = 9,616
(c) ACCRUED TAXES 3,366
FEDERAL AND STATE INCOME TAX EXPENSE 3,366
To record the reduction in Federal and State income taxes due to the higher interest and fee expenses:
$9,616 x 35.00% = 3,366
(d) EQUITY IN EARNINGS OF SUBSIDIARIES 26,564
INVESTMENT IN SUBSIDIARY COMPANIES 26,564
Consolidating entry to reflect the changes in all the subsidiaries short-term debt levels on NU parent books.
NOTE 1 : The LIBOR rate and tax rate reflected above represent the current rates in effect as of the filing date.
NOTE 2 : Proforma financials reflect company borrowings at the proposed SEC limit and the associated interest expense
without reflecting equity or interest earnings of such borrowings.
</TABLE>
CONNECTICUT LIGHT AND POWER COMPANY
BALANCE SHEET
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 2.1 PAGE 1 OF 2
<TABLE>
<CAPTION>
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOK ADJUSTMENTS* TRANSACTION
<S> <C> <C> <C>
ASSETS
UTILITY PLANT, AT ORIGINAL COST:
ELECTRIC $6,191,374 $6,191,374
LESS: ACCUMULATED PROVISION FOR
DEPRECIATION 2,472,181 2,472,181
------------------------------------------
3,719,193 0 3,719,193
CONSTRUCTION WORK IN PROGRESS 78,620 78,620
NUCLEAR FUEL, NET 131,323 131,323
------------------------------------------------
TOTAL NET UTILITY PLANT 3,929,136 0 3,929,136
------------------------------------------------
OTHER PROPERTY AND INVESTMENTS:
NUCLEAR DECOMMISSIONING TRUST, AT MARKET 245,796 245,796
INVESTMENTS IN REGIONAL NUCLEAR
GENERATING COMPANIES, AT EQUITY 54,843 54,843
OTHER, AT COST 16,975 16,975
------------------------------------------------
317,614 0 317,614
------------------------------------------------
CURRENT ASSETS:
CASH AND SPECIAL DEPOSITS 169 375,000 (a) 375,169
RECEIVABLES, NET 251,082 251,082
RECEIVABLES FROM AFFILIATED COMPANIES 15,374 15,374
ACCRUED UTILITY REVENUES 74,170 74,170
FUEL, MATERIAL AND SUPPLIES, AT
AVERAGE COST 68,150 68,150
NET-CURRENT RECOVERABLE ENERGY COSTS 41,431 41,431
PREPAYMENTS AND OTHER 54,377 54,377
------------------------------------------------
TOTAL CURRENT ASSETS 504,753 375,000 879,753
------------------------------------------------
DEFERRED CHARGES:
REGULATORY ASSET-INCOME TAXES, NET 863,521 863,521
UNAMORTIZED DEBT EXPENSE 14,737 14,737
RECOVERABLE ENERGY COSTS, NET 6,075 6,075
DEFERRED CONSERVATION AND LOAD-
MANAGEMENT COSTS 100,200 100,200
DEFERRED DOE ASSESSMENT 0
DEFERRED COSTS - NUCLEAR PLANTS 3,878 3,878
COGENERATION COSTS 100,952 100,952
UNRECOVERED CONTRACT OBLIGATION-YAEC 52,180 52,180
OTHER 40,946 40,946
------------------------------------------------
TOTAL DEFERRED CHARGES 1,182,489 0 1,182,489
------------------------------------------------
TOTAL ASSETS $5,933,992 $375,000 $6,308,992
</TABLE>
* EXPLANATION AT FINANCIAL STATEMENT 2.2 PAGE 3 OF 3
CONNECTICUT LIGHT AND POWER COMPANY
BALANCE SHEET
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 2.1 PAGE 2 OF 2
<TABLE>
<CAPTION>
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOK ADJUSTMENTS* TRANSACTION
CAPITALIZATION AND LIABILITIES
<S> <C> <C> <C>
CAPITALIZATION:
COMMON SHARES $122,229 $122,229
CAPITAL SURPLUS, PAID IN 638,401 638,401
RETAINED EARNINGS 754,263 (13,075) 741,188
------------------------------------------------
TOTAL COMMON STOCKHOLDER'S EQUITY 1,514,893 (13,075) 1,501,818
PREFERRED STOCK NOT SUBJECT TO
MANDATORY REDEMPTION 116,200 116,200
PREFERRED STOCK SUBJECT TO MANDATORY
REDEMPTION 155,000 155,000
LONG-TERM DEBT, NET 1,814,832 1,814,832
------------------------------------------------
TOTAL CAPITALIZATION 3,600,925 (13,075) 3,587,850
OBLIGATIONS UNDER CAPITAL LEASES 101,736 101,736
MINORITY INTEREST IN CONSOLIDATED SUB 100,000 100,000
CURRENT LIABILITIES:
NOTES PAYABLE TO BANKS 0 375,000 (a) 375,000
NOTES PAYABLE TO AFFILIATED COMPANY 0 0
COMMERCIAL PAPER 0 0
LONG-TERM DEBT AND PREFERRED STOCK -
CURRENT PORTION 9,372 9,372
OBLIGATIONS UNDER CAPITAL LEASES -
CURRENT PORTION 60,011 60,011
ACCOUNTS PAYABLE 84,298 84,298
ACCOUNTS PAYABLE TO AFFILIATED
COMPANIES 28,376 28,376
ACCRUED TAXES 85,586 (9,463)(c) 76,123
ACCRUED INTEREST 31,058 22,538 (b) 53,596
OTHER 49,571 49,571
-------------------------- -------------------
TOTAL CURRENT LIABILITIES 348,272 388,075 736,347
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME TAXES 1,468,183 1,468,183
ACCUMULATED DEFERRED INVESTMENT
TAX CREDITS 140,605 140,605
DEFERRED CONTRACT OBLIGATION-YAEC 52,180 52,180
DEFERRED DOE OBLIGATION 0 0
OTHER 122,091 122,091
------------------------------------------------
TOTAL DEFERRED CREDITS 1,783,059 0 1,783,059
------------------------------------------------
TOTAL CAPITALIZATION AND
LIABILITIES $5,933,992 $375,000 $6,308,992
</TABLE>
* EXPLANATION AT FINANCIAL STATEMENT 2.2 PAGE 3 OF 3
CONNECTICUT LIGHT AND POWER COMPANY
INCOME STATEMENT
FOR 12 MONTHS ENDED MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 2.2 PAGE 1 OF 3
<TABLE>
<CAPTION>
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOK ADJUSTMENTS* TRANSACTION
<S> <C> <C> <C>
OPERATING REVENUE $2,445,229 $0 $2,445,229
------------------------------------------------
OPERATING EXPENSES:
OPERATION -
FUEL PURCHASED AND INTERCHANGE
POWER 672,060 672,060
OTHER 658,982 658,982
MAINTENANCE 199,892 199,892
DEPRECIATION 244,474 244,474
AMORTIZATION/DEFERRALS OF REGULATORY
ASSETS, NET 42,361 42,361
FEDERAL AND STATE INCOME TAXES 164,551 (9,463)(c) 155,088
TAXES OTHER THAN INCOME TAXES 175,098 175,098
------------------------------------------------
TOTAL OPERATING EXPENSES 2,157,418 (9,463) 2,147,955
------------------------------------------------
OPERATING INCOME: 287,811 9,463 297,274
------------------------------------------------
OTHER INCOME:
ALLOWANCE FOR OTHER FUNDS USED
DURING CONSTRUCTION 0 0
DEFERRED NUCLEAR PLANTS RETURN-OTHER
FUNDS 3,910 3,910
EQUITY IN EARNINGS OF REGIONAL NUCLEAR
GENERATING COMPANIES 7,308 7,308
WRITE OFF OF PLANT COSTS 0 0
OTHER, NET 5,601 5,601
INCOME TAXES - CREDIT (5,547) (5,547)
------------------------------------------------
OTHER INCOME, NET 11,272 0 11,272
------------------------------------------------
INCOME BEFORE INTEREST CHARGES 299,083 9,463 308,546
------------------------------------------------
INTEREST CHARGES:
INTEREST ON LONG-TERM DEBT 123,186 123,186
OTHER INTEREST 5,005 22,538 (b) 27,543
DEFERRED NUCLEAR PLANTS RETURN -
BORROWED FUNDS, NET OF INCOME TAX (1,299) (1,299)
------------------------------------------------
TOTAL INTEREST CHARGES 126,892 22,538 149,430
------------------------------------------------
NET INCOME 172,191 (13,075) 159,116
</TABLE>
* EXPLANATION AT FINANCIAL STATEMENT 2.2 PAGE 3 OF 3
CONNECTICUT LIGHT AND POWER COMPANY
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 2.2 PAGE 2 OF 3
<TABLE>
<CAPTION>
PER BOOK
ADJUSTED TO
PRO FORMA REFLECT
% PER BOOK ADJUSTMENT PRO FORMA %
<S> <C> <C> <C> <C> <C>
DEBT:
LONG-TERM DEBT, NET 50.5%$1,824,204 0 $1,824,204 50.7%
PREFERRED STOCK:
NOT SUBJECT TO REDEMPTION 116,200 116,200
SUBJECT TO REDEMPTION 155,000 155,000
------------------------------------------------
TOTAL PREFERRED STOCK 7.5% 271,200 0 271,200 7.5%
COMMON EQUITY:
COMMON SHARES 122,229 122,229
CAPITAL SURPLUS, PAID IN 638,401 638,401
RETAINED EARNINGS 754,263 (13,075) 741,188
------------------------------------------------
TOTAL COMMON STOCKHOLDER'S EQUITY 42.0% 1,514,893 (13,075) 1,501,818 41.7%
------------------------------------------------
TOTAL CAPITAL 100.0%$3,610,297 (13,075) $3,597,222 100.0%
</TABLE>
CONNECTICUT LIGHT AND POWER COMPANY
EXPLANATION OF ADJUSTMENTS
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 2.2 PAGE 3 OF 3
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
DEBIT CREDIT
(a) CASH $375,000
NOTES PAYABLE $375,000
To record the additional proposed borrowing up to the entire $375 million available to the company.
(b) OTHER INTEREST EXPENSE 22,538
ACCRUED INTEREST 22,538
To record the interest expense on the additional proposed borrowing at LIBOR as of 6/10/96 [5.46%] + 0.55%:
$375,000 x 6.01% = 22,538
(c) ACCRUED TAXES 9,463
FEDERAL AND STATE INCOME TAX EXPENSE 9,463
To record the reduction in Federal and State income taxes due to the higher interest and fee expenses:
$22,538 x 41.99% = 9,463
NOTE 1 : The LIBOR rate and tax rate reflected above represent the current rates in effect as of the filing date.
NOTE 2 : Proforma financials reflect company borrowings at the proposed SEC limit and the associated interest expense
without reflecting equity or interest earnings of such borrowings.
</TABLE>
WESTERN MASSACHUSETTS ELECTRIC COMPANY
BALANCE SHEET
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 3.1 PAGE 1 OF 2
<TABLE>
<CAPTION>
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOK ADJUSTMENTS* TRANSACTION
<S> <C> <C> <C>
ASSETS
UTILITY PLANT, AT ORIGINAL COST:
ELECTRIC $1,242,737 $1,242,737
LESS: ACCUMULATED PROVISION FOR
DEPRECIATION 472,017 472,017
------------------------------------------
770,720 0 770,720
CONSTRUCTION WORK IN PROGRESS 14,961 14,961
NUCLEAR FUEL, NET 30,040 30,040
------------------------------------------------
TOTAL NET UTILITY PLANT 815,721 0 815,721
------------------------------------------------
OTHER PROPERTY AND INVESTMENTS:
NUCLEAR DECOMMISSIONING TRUST, AT MARKET 71,662 71,662
INVESTMENTS IN REGIONAL NUCLEAR
GENERATING COMPANIES, AT EQUITY 14,881 14,881
OTHER, AT COST 4,290 4,290
------------------------------------------------
90,833 0 90,833
------------------------------------------------
CURRENT ASSETS:
CASH AND SPECIAL DEPOSITS 97 136,950 (a) 137,047
RECEIVABLES, NET 41,295 41,295
RECEIVABLES FROM AFFILIATED COMPANIES 1,018 1,018
ACCRUED UTILITY REVENUES 11,844 11,844
FUEL, MATERIAL AND SUPPLIES, AT
AVERAGE COST 5,234 5,234
PREPAYMENTS AND OTHER 10,975 10,975
------------------------------------------------
TOTAL CURRENT ASSETS 70,463 136,950 207,413
------------------------------------------------
DEFERRED CHARGES:
UNAMORTIZED DEBT EXPENSE 1,449 1,449
INCOME TAXES, NET 87,829 87,829
DEFERRED DOE ASSESSMENT 0
RECOVERABLE ENERGY COSTS 10,919 10,919
AMORTIZABLE PROPERTY INVESTMENT - 0
UNRECOVERED CONTRACT OBLIGATION-YAEC 14,908 14,908
OTHER 36,908 36,908
------------------------------------------------
TOTAL DEFERRED CHARGES 152,013 0 152,013
------------------------------------------------
TOTAL ASSETS $1,129,030 $136,950 $1,265,980
* EXPLANATION AT FINANCIAL STATEMENT 3.2 PAGE 3 OF 3
</TABLE>
WESTERN MASSACHUSETTS ELECTRIC COMPANY
BALANCE SHEET
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 3.1 PAGE 2 OF 2
<TABLE>
<CAPTION>
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOK ADJUSTMENTS* TRANSACTION
CAPITALIZATION AND LIABILITIES
<S> <C> <C> <C>
CAPITALIZATION:
COMMON SHARES $26,812 $26,812
CAPITAL SURPLUS, PAID IN 150,255 150,255
RETAINED EARNINGS 113,194 (5,002) 108,192
------------------------------------------------
TOTAL COMMON STOCKHOLDER'S EQUITY 290,261 (5,002) 285,259
PREFERRED STOCK NOT SUBJECT TO
MANDATORY REDEMPTION 53,500 53,500
PREFERRED STOCK SUBJECT TO MANDATORY
REDEMPTION 21,000 21,000
LONG-TERM DEBT, NET 347,956 347,956
------------------------------------------------
TOTAL CAPITALIZATION 712,717 (5,002) 707,715
OBLIGATIONS UNDER CAPITAL LEASES 19,328 19,328
NOTES PAYABLE TO AFFILIATED COMPANIES 13,050 13,050
NOTES PAYABLE TO BANKS 0 136,950 (a) 136,950
LONG-TERM DEBT AND PREFERRED STOCK -
CURRENT PORTION 1,500 1,500
OBLIGATIONS UNDER CAPITAL LEASES -
CURRENT PORTION 14,250 14,250
ACCOUNTS PAYABLE 10,667 10,667
ACCOUNTS PAYABLE TO AFFILIATED
COMPANIES 7,925 7,925
ACCRUED TAXES 10,561 (3,228)(c) 7,333
ACCRUED INTEREST 4,239 8,231 (b) 12,470
REFUNDABLE CONSERVATION COSTS - NET 0 0
OTHER 17,571 17,571
------------------------------------------------
TOTAL CURRENT LIABILITIES 79,763 141,952 221,715
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME TAXES 256,522 256,522
ACCUMULATED DEFERRED INVESTMENT
TAX CREDITS 25,935 25,935
DEFERRED CONTRACT OBLIGATION-YAEC 14,908 14,908
DEFERRED DOE OBLIGATION 0 0
OTHER 19,857 19,857
------------------------------------------------
TOTAL DEFERRED CREDITS 317,222 0 317,222
------------------------------------------------
TOTAL CAPITALIZATION AND
LIABILITIES $1,129,030 $136,950 $1,265,980
* EXPLANATION AT FINANCIAL STATEMENT 3.2 PAGE 3 OF 3
</TABLE>
WESTERN MASSACHUSETTS ELECTRIC COMPANY
INCOME STATEMENT
FOR 12 MONTHS ENDED MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 3.2 PAGE 1 OF 3
<TABLE>
<CAPTION>
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOK ADJUSTMENTS* TRANSACTION
<S> <C> <C> <C>
OPERATING REVENUE $428,547 $0 $428,547
------------------------------------------------
OPERATING EXPENSES:
OPERATION -
FUEL PURCHASED AND INTERCHANGE
POWER 94,890 94,890
OTHER 148,374 148,374
MAINTENANCE 39,293 39,293
DEPRECIATION 38,130 38,130
AMORTIZATION/DEFERRALS OF REGULATORY
ASSETS, NET 15,692 15,692
FEDERAL AND STATE INCOME TAXES 14,355 (3,228)(c) 11,127
TAXES OTHER THAN INCOME TAXES 19,144 19,144
------------------------------------------------
TOTAL OPERATING EXPENSES 369,878 (3,228) 366,650
------------------------------------------------
OPERATING INCOME: 58,669 3,228 61,897
------------------------------------------------
OTHER INCOME:
DEFERRED NUCLEAR PLANTS RETURN-OTHER
FUNDS 0 0
EQUITY IN EARNINGS OF REGIONAL NUCLEAR
GENERATING COMPANIES 1,989 1,989
OTHER, NET 585 585
INCOME TAXES - CREDIT 285 285
------------------------------------------------
OTHER INCOME, NET 2,859 0 2,859
------------------------------------------------
INCOME BEFORE INTEREST CHARGES 61,528 3,228 64,756
------------------------------------------------
INTEREST CHARGES:
INTEREST ON LONG-TERM DEBT 25,860 25,860
OTHER INTEREST 502 8,231 (b) 8,733
DEFERRED NUCLEAR PLANTS RETURN -
BORROWED FUNDS, NET OF INCOME TAX 0 0
------------------------------------------------
TOTAL INTEREST CHARGES 26,362 8,231 34,593
------------------------------------------------
NET INCOME 35,166 (5,002) 30,164
* EXPLANATION AT FINANCIAL STATEMENT 3.2 PAGE 3 OF 3
</TABLE>
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 3.2 PAGE 2 OF 3
<TABLE>
<CAPTION>
PER BOOK
ADJUSTED TO
PRO FORMA REFLECT
% PER BOOK ADJUSTMENT PRO FORMA %
<S> <C> <C> <C> <C> <C>
DEBT:
LONG-TERM DEBT, NET 48.7% $347,956 0 $347,956 49.1%
PREFERRED STOCK:
NOT SUBJECT TO REDEMPTION 53,500 53,500
SUBJECT TO REDEMPTION 22,500 22,500
------------------------------------------------
TOTAL PREFERRED STOCK 10.6% 76,000 0 76,000 10.7%
COMMON EQUITY:
COMMON SHARES 26,812 26,812
CAPITAL SURPLUS, PAID IN 150,255 150,255
RETAINED EARNINGS 113,194 (5,002) 108,192
------------------------------------------------
TOTAL COMMON STOCKHOLDER'S EQUITY 40.7% 290,261 (5,002) 285,259 40.2%
------------------------------------------------
TOTAL CAPITAL 100.0% $714,217 (5,002) $709,215 100.0%
</TABLE>
WESTERN MASSACHUSETTS ELECTRIC COMPANY
EXPLANATION OF ADJUSTMENTS
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 3.2 PAGE 3 OF 3
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
$136,950 x 6.01% = 8,231
DEBIT CREDIT
(a) CASH $136,950
NOTES PAYABLE $136,950
To record the additional proposed borrowing up to the entire $150 million available to the company.
(b) OTHER INTEREST EXPENSE 8,231
ACCRUED INTEREST 8,231
To record the interest expense on the additional proposed borrowing at LIBOR as of 6/10/96 [5.46%] + 0.55%:
$136,950 x 6.01% = 8,231
(c) ACCRUED TAXES 3,228
FEDERAL AND STATE INCOME TAX EXPENSE 3,228
To record the reduction in Federal and State income taxes due to the higher interest and fee expenses:
$8,231 x 39.23% = 3,228
NOTE 1 : The LIBOR rate and tax rate reflected above represent the current rates in effect as of the filing date.
NOTE 2 : Proforma financials reflect company borrowings at the proposed SEC limit and the associated interest expense
without reflecting equity or interest earnings of such borrowings.
</TABLE>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
BALANCE SHEET
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 4.1 PAGE 1 OF 2
<TABLE>
<CAPTION>
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOK ADJUSTMENTS* TRANSACTION
<S> <C> <C> <C>
ASSETS
UTILITY PLANT, AT ORIGINAL COST:
ELECTRIC $2,117,510 $2,117,510
LESS: ACCUMULATED PROVISION FOR
DEPRECIATION 524,128 524,128
-------------------------------------------
1,593,382 0 1,593,382
CONSTRUCTION WORK IN PROGRESS 15,189 15,189
NUCLEAR FUEL, NET 1,352 1,352
---------------------------------------------------
TOTAL NET UTILITY PLANT 1,609,923 0 1,609,923
OTHER PROPERTY AND INVESTMENTS:
NUCLEAR DECOMMISSIONING TRUST, AT MARKET 2,584 2,584
INVESTMENTS IN REGIONAL NUCLEAR
GENERATING AND SUBSIDIARY COMPANIES,
AT EQUITY 19,200 19,200
OTHER, AT COST 1,112 1,112
---------------------------------------------------
TOTAL OTHER PROP. & INVEST. 22,896 0 22,896
CURRENT ASSETS:
CASH AND SPECIAL DEPOSITS 222 225,000 (a) 225,222
RECEIVABLES, NET 93,649 93,649
ACCOUNTS RECEIVABLE FROM AFFILIATES 1,214 1,214
NOTES RECEIVABLE FROM AFFILIATED COS. 86,850 86,850
ACCRUED UTILITY REVENUES 29,443 29,443
FUEL, MATERIAL AND SUPPLIES, AT
AVERAGE COST 43,553 43,553
ENERGY ADJUSTMENT CLAUSE - CURRENT 0 0
PREPAYMENTS AND OTHER 5,275 5,275
---------------------------------------------------
TOTAL CURRENT ASSETS 260,206 225,000 485,206
DEFERRED CHARGES:
UNAMORTIZED ACQUISITION COSTS 566,394 566,394
UNRECOVERED CONTRACT OBLIGATIONS-YAEC 14,908 14,908
UNAMORTIZED DEBT EXPENSE 13,308 13,308
REGULATORY ASSET - INCOME TAXES NET 200,905 200,905
ENERGY ADJUSTMENT CLAUSE 226,133 226,133
DEFERRED RECEIVABLE FROM ASSOCIATED
COMPANY 33,284 33,284
OTHER 6,971 6,971
---------------------------------------------------
TOTAL DEFERRED CHARGES 1,061,903 0 1,061,903
---------------------------------------------------
TOTAL ASSETS $2,954,928 $225,000 $3,179,928
</TABLE>
* EXPLANATION AT FINANCIAL STATEMENT 4.2 PAGE 3 OF 3
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
BALANCE SHEET
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 4.1 PAGE 2 OF 2
<TABLE>
<CAPTION>
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOK ADJUSTMENTS* TRANSACTION
CAPITALIZATION AND LIABILITIES
<S> <C> <C> <C>
CAPITALIZATION:
COMMON SHARES $1 $1
CAPITAL SURPLUS, PAID IN 422,549 422,549
RETAINED EARNINGS 168,272 (8,174) 160,098
---------------------------------------------------
TOTAL COMMON STOCKHOLDER EQUITY 590,822 (8,174) 582,648
PREFERRED STOCK SUBJECT TO MANDATORY
REDEMPTION 125,000 125,000
LONG-TERM DEBT 686,485 686,485
---------------------------------------------------
TOTAL CAPITALIZATION 1,402,307 (8,174) 1,394,133
OBLIGATIONS UNDER CAPITAL LEASES 873,361 873,361
CURRENT LIABILITIES:
NOTES PAYABLE TO BANK 0 225,000 (a) 225,000
LONG-TERM DEBT CURRENT PORTION 172,500 172,500
OBLIGATIONS UNDER CAPITAL LEASES -
CURRENT PORTION 40,557 40,557
ACCOUNTS PAYABLE 24,381 24,381
ACCOUNTS PAYABLE TO AFFILIATED COMPANIES 18,855 18,855
ACCRUED TAXES 2,567 (5,348)(c) (2,781)
ACCRUED INTEREST 23,737 13,523 (b) 37,260
ACCRUED PENSION BENEFITS 39,506 39,506
OTHER 23,754 23,754
--------------------------- ---------------------
TOTAL CURRENT LIABILITIES 345,857 233,174 579,031
DEFERRED CREDITS:
DEFERRED CONTRACT OBLIGATION-YAEC 14,908 14,908
ACCUMULATED DEFERRED INVESTMENT
TAX CREDITS 4,923 4,923
ACCUMULATED DEFERRED INCOME TAXES 255,461 255,461
DEFERRED REVENUE FROM AFFILIATED CO. 33,284 33,284
OTHER 24,827 24,827
---------------------------------------------------
TOTAL DEFERRED CREDITS 333,403 0 333,403
---------------------------------------------------
TOTAL CAPITALIZATION AND
LIABILITIES $2,954,928 $225,000 $3,179,928
</TABLE>
* EXPLANATION AT FINANCIAL STATEMENT 4.2 PAGE 3 OF 3
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
INCOME STATEMENT
FOR 12 MONTHS ENDED MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 4.2 PAGE 1 OF 3
<TABLE>
<CAPTION>
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOK ADJUSTMENTS * TRANSACTION
<S> <C> <C> <C>
OPERATING REVENUE $997,174 $0 $997,174
---------------------------------------------------
OPERATING EXPENSES:
OPERATIONS -
FUEL, PURCHASED AND NET INTERCHANGE
POWER 263,105 263,105
OTHER 317,359 317,359
MAINTENANCE 41,836 41,836
DEPRECIATION 45,098 45,098
AMORTIZATION OF REGULATORY ASSET 55,712 55,712
FEDERAL AND STATE INCOME TAXES 72,264 (5,348)(c) 66,916
TAXES OTHER THAN INCOME TAXES 43,361 43,361
---------------------------------------------------
TOTAL OPERATING EXPENSES 838,735 (5,348) 833,387
---------------------------------------------------
OPERATING INCOME: 158,439 5,348 163,787
---------------------------------------------------
OTHER INCOME:
EQUITY IN EARNINGS OF REGIONAL NUCLEAR
GENERATING COMPANIES AND SUBSIDIARY
COMPANY 1,895 1,895
OTHER, NET 5,162 5,162
INCOME TAXES - CREDIT (1,609) (1,609)
---------------------------------------------------
OTHER INCOME, NET 5,448 0 5,448
---------------------------------------------------
INCOME BEFORE INTEREST CHARGES 163,887 5,348 169,235
---------------------------------------------------
INTEREST CHARGES:
INTEREST ON LONG-TERM DEBT 73,630 73,630
OTHER INTEREST 280 13,523 (b) 13,803
---------------------------------------------------
TOTAL INTEREST CHARGES 73,910 13,523 87,433
---------------------------------------------------
NET INCOME 89,977 (8,174) 81,803
</TABLE>
* EXPLANATION AT FINANCIAL STATEMENT 4.2 PAGE 3 OF 3
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
CAPITAL STRUCTURE AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 4.2 PAGE 2 OF 3
<TABLE>
<CAPTION>
PER BOOK
ADJUSTED TO
PRO FORMA REFLECT
% PER BOOK ADJUSTMENT PRO FORMA %
<S> <C> <C> <C> <C> <C>
DEBT:
LONG-TERM DEBT $686,485 $686,485
LONG-TERM DEBT CURRENT PORTION 172,500 172,500
---------------------------------------------------
TOTAL DEBT 54.5% 858,985 0 858,985 54.8%
PREFERRED STOCK:
PREFERRED STOCK SUBJECT TO MANDATORY
REDEMPTION 7.9% 125,000 0 125,000 8.0%
COMMON EQUITY:
COMMON SHARES 1 1
CAPITAL SURPLUS, PAID IN 422,549 422,549
RETAINED EARNINGS 168,272 (8,174) 160,098
---------------------------------------------------
TOTAL COMMON STOCKHOLDER EQUITY 37.5% 590,822 (8,174) 582,648 37.2%
TOTAL CAPITAL 100.0% $1,574,807 (8,174) $1,566,633 100.0%
</TABLE>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
EXPLANATION OF ADJUSTMENTS
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 4.2 PAGE 3 OF 3
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
$225,000 x 6.01% = 13,523
DEBIT CREDIT
(a) CASH $225,000
NOTES PAYABLE $225,000
To record the additional proposed borrowing up to the entire $225 million available to the company.
(b) OTHER INTEREST EXPENSE 13,523
ACCRUED INTEREST 13,523
To record the interest expense on the additional proposed borrowing at LIBOR as of 6/10/96 [5.46%] + 0.55%:
$225,000 x 6.01% = 13,523
(c) ACCRUED TAXES 5,348
FEDERAL AND STATE INCOME TAX EXPENSE 5,348
To record the reduction in Federal and State income taxes due to the higher interest and fee expenses:
$13,523 x 39.55% = 5,348
NOTE 1 : The LIBOR rate and tax rate reflected above represent the current rates in effect as of the filing date.
NOTE 2 : Proforma financials reflect company borrowings at the proposed SEC limit and the associated interest expense
without reflecting equity or interest earnings of such borrowings.
</TABLE>
HOLYOKE WATER POWER COMPANY
CONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 5.1 PAGE 1 OF 2
<TABLE>
<CAPTION>
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOK ADJUSTMENTS* TRANSACTION
<S> <C> <C> <C>
ASSETS
UTILITY PLANT, AT ORIGINAL COST:
ELECTRIC $95,465 $95,465
LESS: ACCUMULATED PROVISION FOR
DEPRECIATION 40,100 40,100
------------------------------------------
55,365 0 55,365
CONSTRUCTION WORK IN PROGRESS 1,620 1,620
------------------------------------------------
TOTAL NET UTILITY PLANT 56,985 0 56,985
------------------------------------------------
OTHER PROPERTY AND INVESTMENTS:
NONUTILITY PROPERTY, AT EQUITY 3,355 3,355
OTHER INVESTMENTS, AT COST 2 2
------------------------------------------------
3,357 0 3,357
------------------------------------------------
CURRENT ASSETS:
CASH 153 5,000 (a) 5,153
NOTES RECEIVABLE FROM AFFILIATES 10,000 10,000
ACCOUNTS RECEIVABLE 4,374 4,374
ACCOUNTS RECEIVABLE FROM AFFILIATES 58 58
FUEL, MATERIAL AND SUPPLIES, AT
AVERAGE COST 4,976 4,976
PREPAYMENTS AND OTHER 175 175
------------------------------------------------
TOTAL CURRENT ASSETS 19,736 5,000 24,736
------------------------------------------------
DEFERRED CHARGES:
UNAMORTIZED DEBT EXPENSE 986 986
DEFERRED CHARGES -- SFAS 109 2,489 2,489
OTHER 325 325
------------------------------------------------
TOTAL DEFERRED CHARGES 3,800 0 3,800
------------------------------------------------
TOTAL ASSETS $83,878 $5,000 $88,878
</TABLE>
* EXPLANATION AT FINANCIAL STATEMENT 5.2 PAGE 3 OF 3
HOLYOKE WATER POWER COMPANY
CONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 5.1 PAGE 2 OF 2
<TABLE>
<CAPTION>
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOK ADJUSTMENTS* TRANSACTION
CAPITALIZATION AND LIABILITIES
<S> <C> <C> <C>
CAPITALIZATION:
COMMON SHARES $2,400 $2,400
CAPITAL SURPLUS, PAID IN 6,000 6,000
RETAINED EARNINGS 12,869 (177) 12,692
------------------------------------------------
TOTAL COMMON STOCKHOLDER'S EQUITY 21,269 (177) 21,092
LONG-TERM DEBT, NET 38,300 38,300
------------------------------------------------
TOTAL CAPITALIZATION 59,569 (177) 59,392
CURRENT LIABILITIES:
ACCOUNTS PAYABLE 2,364 2,364
ACCOUNTS PAYABLE TO AFFILIATES 482 482
NOTES PAYABLE 0 5,000 (a) 5,000
ACCRUED TAXES 1,757 (124)(c) 1,633
ACCRUED INTEREST 179 301 (b) 480
OTHER 1,233 1,233
-------------------------- -------------------
TOTAL CURRENT LIABILITIES 6,015 5,177 11,192
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME TAXES 12,392 12,392
ACCUMULATED DEFERRED INVESTMENT
TAX CREDITS 2,902 2,902
OTHER 3,000 3,000
------------------------------------------------
TOTAL DEFERRED CREDITS 18,294 0 18,294
------------------------------------------------
TOTAL CAPITALIZATION AND
LIABILITIES $83,878 $5,000 $88,878
</TABLE>
* EXPLANATION AT FINANCIAL STATEMENT 5.2 PAGE 3 OF 3
HOLYOKE WATER POWER COMPANY
CONSOLIDATED INCOME STATEMENT
FOR 12 MONTHS ENDED MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 5.2 PAGE 1 OF 3
<TABLE>
<CAPTION>
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOK ADJUSTMENTS* TRANSACTION
<S> <C> <C> <C>
OPERATING REVENUE $34,031 $0 $34,031
------------------------------------------------
OPERATING EXPENSES:
OPERATION -
FUEL PURCHASED AND INTERCHANGE
POWER 16,789 16,789
OTHER 9,703 9,703
MAINTENANCE 3,260 3,260
DEPRECIATION 1,954 1,954
FEDERAL AND STATE INCOME TAXES (1,267) (124)(c) (1,391)
TAXES OTHER THAN INCOME TAXES 2,160 2,160
------------------------------------------------
TOTAL OPERATING EXPENSES 32,599 (124) 32,475
------------------------------------------------
OPERATING INCOME: 1,432 124 1,556
------------------------------------------------
OTHER INCOME:
OTHER, NET 541 541
INCOME TAXES - CREDIT (80) (80)
------------------------------------------------
OTHER INCOME, NET 461 0 461
------------------------------------------------
INCOME BEFORE INTEREST CHARGES 1,893 124 2,017
------------------------------------------------
INTEREST CHARGES:
INTEREST ON LONG-TERM DEBT 1,678 1,678
OTHER INTEREST (67) 301 (b) 234
------------------------------------------------
TOTAL INTEREST CHARGES 1,611 301 1,912
------------------------------------------------
NET INCOME 282 (177) 105
</TABLE>
* EXPLANATION AT FINANCIAL STATEMENT 5.2 PAGE 3 OF 3
HOLYOKE WATER POWER COMPANY
CAPITAL STRUCTURE AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 5.2 PAGE 2 OF 3
<TABLE>
<CAPTION>
PER BOOK
ADJUSTED TO
PRO FORMA REFLECT
% PER BOOK ADJUSTMENT PRO FORMA %
<S> <C> <C> <C> <C> <C>
DEBT:
LONG-TERM DEBT, NET 64.3% $38,300 0 $38,300 64.5%
------------------------------------------------
COMMON EQUITY:
COMMON SHARES $2,400 2,400
CAPITAL SURPLUS, PAID IN 6,000 6,000
RETAINED EARNINGS 12,869 (177) 12,692
------------------------------------------------
TOTAL COMMON STOCKHOLDER'S EQUITY 35.7% 21,269 (177) 21,092 35.5%
------------------------------------------------
TOTAL CAPITAL 100.0% $59,569 (177) $59,392 100.0%
</TABLE>
HOLYOKE WATER POWER COMPANY
EXPLANATION OF ADJUSTMENTS
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 5.2 PAGE 3 OF 3
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
$5,000 x 6.01% = 301
DEBIT CREDIT
(a) CASH $5,000
NOTES PAYABLE $5,000
To record the additional proposed borrowing up to the entire $5 million available to the company.
(b) OTHER INTEREST EXPENSE 301
ACCRUED INTEREST 301
To record the interest expense on the additional proposed borrowing at LIBOR as of 6/10/96 [5.46%] + 0.55%:
$5,000 x 6.01% = 301
(c) ACCRUED TAXES 124
FEDERAL AND STATE INCOME TAX EXPENSE 124
To record the reduction in Federal and State income taxes due to the higher interest and fee expenses:
$301 x 41.18% = 124
NOTE 1 : The LIBOR rate and tax rate reflected above represent the current rates in effect as of the filing date.
NOTE 2 : Proforma financials reflect company borrowings at the proposed SEC limit and the associated interest expense
without reflecting equity or interest earnings of such borrowings.
</TABLE>
NORTH ATLANTIC ENERGY CORPORATION
BALANCE SHEET
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 6.1 PAGE 1 OF 2
<TABLE>
<CAPTION>
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOK ADJUSTMENTS* TRANSACTION
<S> <C> <C> <C>
ASSETS
UTILITY PLANT, AT ORIGINAL COST:
ELECTRIC $774,474 $774,474
LESS: ACCUMULATED PROVISION FOR
DEPRECIATION 104,804 104,804
------------------------------------------
669,670 0 669,670
CONSTRUCTION WORK IN PROGRESS 4,619 4,619
NUCLEAR FUEL, NET 25,337 25,337
------------------------------------------------
TOTAL NET UTILITY PLANT 699,626 0 699,626
OTHER PROPERTY AND INVESTMENTS:
NUCLEAR DECOMMISSIONING TRUST, AT MARKET 16,343 16,343
------------------------------------------------
TOTAL OTHER PROP. & INVEST. 16,343 0 16,343
CURRENT ASSETS:
CASH AND SPECIAL DEPOSITS 4,018 50,000 (a) 54,018
RECEIVABLES FROM AFFILIATED COMPANIES 24,309 24,309
NOTES RECEIVABLE FROM AFFILIATES 6,500 6,500
TAXES RECEIVABLE 3,608 3,608
FUEL, MATERIALS, AND SUPPLIES, AT
AVERAGE COST 12,610 12,610
PREPAYMENTS AND OTHER 2,051 2,051
------------------------------------------------
TOTAL CURRENT ASSETS 53,096 50,000 103,096
DEFERRED CHARGES:
UNAMORTIZED DEBT EXPENSE 5,381 5,381
DEFERRED COST - SEABROOK 170,008 170,008
REGULATORY ASSET - INCOME TAXES 43,231 43,231
DEFERRED DOE ASSESSMENT 30,264 30,264
OTHER DEFERRED DEBITS 2,658 2,658
------------------------------------------------
TOTAL DEFERRED CHARGES 251,542 0 251,542
------------------------------------------------
TOTAL ASSETS $1,020,607 $50,000 $1,070,607
</TABLE>
*EXPLANATION AT FINANCIAL STATEMENT 6.2 PAGE 3 OF 3
NORTH ATLANTIC ENERGY CORPORATION
BALANCE SHEET
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 6.1 PAGE 2 OF 2
<TABLE>
<CAPTION>
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOK ADJUSTMENTS* TRANSACTION
CAPITALIZATION AND LIABILITIES
<S> <C> <C> <C>
CAPITALIZATION:
COMMON SHARES $1 $1
CAPITAL SURPLUS, PAID IN 160,999 160,999
RETAINED EARNINGS 61,367 (1,817) 59,550
------------------------------------------------
TOTAL COMMON STOCKHOLDER EQUITY 222,367 (1,817) 220,550
LONG-TERM DEBT 540,000 540,000
------------------------------------------------
TOTAL CAPITALIZATION 762,367 (1,817) 760,550
CURRENT LIABILITIES:
NOTES PAYABLE TO AFFILIATED COMPANY 0 50,000 (a) 50,000
ACCOUNTS PAYABLE 4,808 4,808
LONG TERM DEBT CURRENT PORTION 20,000 20,000
ACCRUED TAXES 0 (1,188)(c) (1,188)
OTHER 1,118 1,118
ACCRUED INTEREST 10,987 3,005 (b) 13,992
-------------------------- -------------------
TOTAL CURRENT LIABILITIES 36,913 51,817 88,730
DEFERRED CREDITS:
DEFERRED CONTRACT OBLIGATIONS TO
ASSOCIATED COMPANY 33,284 33,284
ACCUMULATED DEFERRED INCOME TAXES 185,836 185,836
DEFERRED SEABROOK TAX SETTLEMENT 0 0
OTHER 2,207 2,207
------------------------------------------------
TOTAL DEFERRED CREDITS 221,327 0 221,327
------------------------------------------------
TOTAL CAPITALIZATION AND
LIABILITIES $1,020,607 $50,000 $1,070,607
</TABLE>
*EXPLANATION AT FINANCIAL STATEMENT 6.2 PAGE 3 OF 3
NORTH ATLANTIC ENERGY CORPORATION
INCOME STATEMENT
FOR 12 MONTHS ENDED MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 6.2 PAGE 1 OF 3
<TABLE>
<CAPTION>
PRO FORMA
GIVING EFFECT
PRO FORMA * TO PROPOSED
PER BOOK ADJUSTMENTS TRANSACTION
<S> <C> <C> <C>
OPERATING REVENUE $159,862 $0 $159,862
------------------------------------------------
OPERATING EXPENSES:
OPERATIONS -
FUEL 12,088 12,088
OTHER 36,880 36,880
MAINTENANCE 12,453 12,453
DEPRECIATION 23,572 23,572
FEDERAL AND STATE INCOME TAXES 10,706 (1,188)(c) 9,518
TAXES OTHER THAN INCOME TAXES 11,668 11,668
------------------------------------------------
TOTAL OPERATING EXPENSES 107,367 (1,188) 106,179
------------------------------------------------
OPERATING INCOME: 52,495 1,188 53,683
------------------------------------------------
OTHER INCOME:
DEFERRED SEABROOK RETURN 8,602 8,602
OTHER, NET 1,326 1,326
INCOME TAXES - CREDIT 2,651 2,651
------------------------------------------------
OTHER INCOME, NET 12,579 0 12,579
INCOME BEFORE INTEREST CHARGES 65,074 1,188 66,262
------------------------------------------------
INTEREST CHARGES:
INTEREST ON LONG-TERM DEBT 60,122 60,122
OTHER INTEREST (506) 3,005 (b) 2,499
DEFERRED SEABROOK RETURN - BORROWED
FUNDS (18,672) (18,672)
------------------------------------------------
TOTAL INTEREST CHARGES, NET 40,944 3,005 43,949
NET INCOME 24,130 (1,817) 22,313
</TABLE>
* EXPLANATION AT FINANCIAL STATEMENT 6.2 PAGE 3 OF 3
NORTH ATLANTIC ENERGY CORPORATION
CAPITAL STRUCTURE ON MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 6.2 PAGE 2 OF 3
<TABLE>
<CAPTION>
PER BOOK
ADJUSTED TO
PRO FORMA REFLECT
% PER BOOK ADJUSTMENT PRO FORMA %
<S> <C> <C> <C> <C> <C>
LONG-TERM DEBT 71.6% $560,000 $560,000 71.7%
COMMON SHARES 1 1
CAPITAL SURPLUS, PAID IN 160,999 160,999
RETAINED EARNINGS 61,367 (1,817) 59,550
------------------------------------------------
TOTAL COMMON STOCKHOLDER EQUITY 28.4% 222,367 (1,817) 220,550 28.3%
------------------------------------------------
100.0% $782,367 (1,817) $780,550 100.0%
</TABLE>
NORTH ATLANTIC ENERGY CORPORATION
EXPLANATION OF ADJUSTMENTS
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 6.2 PAGE 3 OF 3
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
DEBIT CREDIT
(a) CASH $50,000
NOTES PAYABLE $50,000
To record the additional proposed borrowing up to the entire $50 million available to the company.
(b) OTHER INTEREST EXPENSE 3,005
ACCRUED INTEREST 3,005
To record the interest expense on the additional proposed borrowing at LIBOR as of 6/10/96 [5.46%] + 0.55%:
$50,000 x 6.01% = 3,005
(c) ACCRUED TAXES 1,188
FEDERAL AND STATE INCOME TAX EXPENSE 1,188
To record the reduction in Federal and State income taxes due to the higher interest and fee expenses:
$1,188 x 39.55% = 1,188
NOTE 1 : The LIBOR rate and tax rate reflected above represent the current rates in effect as of the filing date.
NOTE 2 : Proforma financials reflect company borrowings at the proposed SEC limit and the associated interest expense
without reflecting equity or interest earnings of such borrowings.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 7.1 PAGE 1 OF 2
<TABLE>
<CAPTION>
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOK ADJUSTMENTS* TRANSACTION
<S> <C> <C> <C>
ASSETS
UTILITY PLANT, AT ORIGINAL COST:
ELECTRIC & OTHER $9,710,597 $9,710,597
LESS: ACCUMULATED PROVISION FOR
DEPRECIATION 3,713,481 3,713,481
------------------------------------------
5,997,116 0 5,997,116
CONSTRUCTION WORK IN PROGRESS 165,965 165,965
NUCLEAR FUEL, NET 188,051 188,051
------------------------------------------------
TOTAL NET UTILITY PLANT 6,351,132 0 6,351,132
------------------------------------------------
OTHER PROPERTY AND INVESTMENTS:
NUCLEAR DECOMMISSIONING TRUST, AT MARKET 336,163 336,163
INVESTMENTS IN REGIONAL NUCLEAR
GENERATING COMPANIES, AT EQUITY 82,355 82,355
INVESTMENTS IN TRANSMISSION COMPANIES,
AT EQUITY 23,262 23,262
OTHER, AT COST 81,977 81,977
------------------------------------------------
523,757 0 523,757
------------------------------------------------
CURRENT ASSETS:
CASH AND SPECIAL DEPOSITS 130,034 910,000 (a) 1,040,034
RECEIVABLES, NET 451,365 451,365
RECEIVABLES FROM AFFILIATED COMPANIES 0 0
ACCRUED UTILITY REVENUES 115,457 115,457
FUEL, MATERIAL AND SUPPLIES, AT
AVERAGE COST 201,649 201,649
RECOVERABLE ENERGY COSTS, NET-CURRENT POSITION 36,113 36,113
PREPAYMENTS AND OTHER 38,754 38,754
------------------------------------------------
TOTAL CURRENT ASSETS 973,372 910,000 1,883,372
------------------------------------------------
DEFERRED CHARGES:
REGULATORY ASSET-INCOME TAXES, NET 1,184,304 1,184,304
UNAMORTIZED ACQUISITION COSTS - PSNH 566,394 566,394
UNAMORTIZED DEBT EXPENSE 36,232 36,232
RECOVERABLE ENERGY COSTS, NET 245,427 245,427
DEFERRED CONSERVATION AND LOAD-
MANAGEMENT COSTS 100,200 100,200
COGENERATION COSTS - CLP 100,952 100,952
DEFERRED COSTS - NUCLEAR PLANTS 173,886 173,886
AMORTIZABLE PROPERTY INVESTMENT - 0 0
UNRECOVERED CONTRACT OBLIGATION-YAEC 81,996 81,996
OTHER 159,657 159,657
------------------------------------------------
TOTAL DEFERRED CHARGES 2,649,048 0 2,649,048
------------------------------------------------
TOTAL ASSETS $10,497,309 $910,000 $11,407,309
</TABLE>
* EXPLANATION AT FINANCIAL STATEMENT 7.2 PAGE 3 OF 3
NORTHEAST UTILITIES AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 7.1 PAGE 2 OF 2
<TABLE>
<CAPTION>
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOK ADJUSTMENTS* TRANSACTION
CAPITALIZATION AND LIABILITIES
<S> i <C> <C> <C>
CAPITALIZATION:
COMMON SHARES $680,259 $680,259
CAPITAL SURPLUS, PAID IN 944,965 944,965
DEFERRED BENEFIT PLAN-EMPLOYEE STOCK
OWNERSHIP PLAN (193,837) (193,837)
RETAINED EARNINGS 1,016,660 (32,815) 983,845
------------------------------------------------
TOTAL COMMON STOCKHOLDER'S EQUITY 2,448,047 (32,815) 2,415,232
PREFERRED STOCK NOT SUBJECT TO
MANDATORY REDEMPTION 169,700 169,700
PREFERRED STOCK SUBJECT TO MANDATORY
REDEMPTION 301,000 301,000
LONG-TERM DEBT, NET 3,701,066 3,701,066
------------------------------------------------
TOTAL CAPITALIZATION 6,619,813 (32,815) 6,586,998
OBLIGATIONS UNDER CAPITAL LEASES 138,398 138,398
MINORITY INTEREST IN CONSOLIDATED SUB 99,931 99,931
CURRENT LIABILITIES:
NOTES PAYABLE TO BANKS 40,000 910,000 (a) 950,000
COMMERCIAL PAPER 0 0
LONG-TERM DEBT AND PREFERRED STOCK -
CURRENT PORTION 219,725 219,725
OBLIGATIONS UNDER CAPITAL LEASES -
CURRENT PORTION 78,407 78,407
ACCOUNTS PAYABLE 249,369 249,369
ACCOUNTS PAYABLE TO AFFILIATED
COMPANIES 0 0
ACCRUED TAXES 112,985 (21,876)(c) 91,109
ACCRUED INTEREST 76,038 54,691 (b) 130,729
ACCRUED PENSION BENEFITS 91,630 91,630
OTHER 116,022 116,022
-------------------------- -------------------
TOTAL CURRENT LIABILITIES 984,176 942,815 1,926,991
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME TAXES 2,147,566 2,147,566
ACCUMULATED DEFERRED INVESTMENT
TAX CREDITS 175,654 175,654
DEFERRED CONTRACT OBLIGATION-YAEC 81,996 81,996
DEFERRED DOE OBLIGATION 0 0
OTHER 249,775 249,775
------------------------------------------------
TOTAL DEFERRED CREDITS 2,654,991 0 2,654,991
------------------------------------------------
TOTAL CAPITALIZATION AND
LIABILITIES $10,497,309 $910,000 $11,407,309
</TABLE>
* EXPLANATION AT FINANCIAL STATEMENT 7.2 PAGE 3 OF 3
NORTHEAST UTILITIES AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
FOR 12 MONTHS ENDED MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 7.2 PAGE 1 OF 3
<TABLE>
<CAPTION>
PRO FORMA
GIVING EFFECT
PRO FORMA TO PROPOSED
PER BOOK ADJUSTMENTS* TRANSACTION
<S> <C> <C> <C>
OPERATING REVENUE $3,834,057 $0 $3,834,057
------------------------------------------------
OPERATING EXPENSES:
OPERATION -
FUEL PURCHASED AND INTERCHANGE
POWER 983,339 983,339
OTHER 1,018,666 1,018,666
MAINTENANCE 297,247 297,247
DEPRECIATION 357,484 357,484
AMORTIZATION/DEFERRALS OF REGULATORY
ASSETS, NET 112,853 112,853
FEDERAL AND STATE INCOME TAXES 251,433 (21,876)(c) 229,557
TAXES OTHER THAN INCOME TAXES 255,013 255,013
------------------------------------------------
TOTAL OPERATING EXPENSES 3,276,035 (21,876) 3,254,159
------------------------------------------------
OPERATING INCOME: 558,022 21,876 579,898
------------------------------------------------
OTHER INCOME:
ALLOWANCE FOR OTHER FUNDS USED
DURING CONSTRUCTION 0 0
DEFERRED NUCLEAR PLANTS RETURN-OTHER
FUNDS 12,567 12,567
EQUITY IN EARNINGS OF REGIONAL NUCLEAR
GENERATING COMPANIES 14,527 14,527
WRITE OFF OF PLANT COSTS 0 0
OTHER, NET 8,791 8,791
INCOME TAXES - CREDIT (4,300) (4,300)
------------------------------------------------
OTHER INCOME, NET 31,585 0 31,585
------------------------------------------------
INCOME BEFORE INTEREST CHARGES 589,607 21,876 611,483
------------------------------------------------
INTEREST CHARGES:
INTEREST ON LONG-TERM DEBT 308,082 308,082
OTHER INTEREST 6,209 54,691 (b) 60,900
ALLOWANCE FOR BORROWED FUNDS USED
DURING CONSTRUCTION 0 0
DEFERRED NUCLEAR PLANTS RETURN -
BORROWED FUNDS, NET OF INCOME TAX (20,018) (20,018)
------------------------------------------------
TOTAL INTEREST CHARGES 294,273 54,691 348,964
------------------------------------------------
INCOME BEFORE PREFERRED DIVIDENDS 295,334 (32,815) 262,519
PREFERRED DIVIDENDS OF SUBSIDIARIES 33,682 33,682
------------------------------------------------
NET INCOME 261,652 (32,815) 228,837
EARNINGS FOR COMMON SHARE 261,652 (32,815) 228,837
EARNINGS PER COMMON SHARE 2.07 1.81
COMMON SHARES OUTSTANDING (AVERAGE) 126,704,283 126,704,283
</TABLE>
* EXPLANATION AT FINANCIAL STATEMENT 7.2 PAGE 3 OF 3
NORTHEAST UTILITIES AND SUBSIDIARIES
CAPITAL STRUCTURE AS OF MARCH 31, 1996
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 7.2 PAGE 2 OF 3
<TABLE>
<CAPTION>
PER BOOK
ADJUSTED TO
PRO FORMA REFLECT
% PER BOOK ADJUSTMENT PRO FORMA %
<S> <C> <C> <C> <C> <C>
DEBT:
LONG-TERM DEBT 57.3%$3,919,291 0 $3,919,291 57.6%
PREFERRED STOCK:
NOT SUBJECT TO REDEMPTION 171,200 171,200
SUBJECT TO REDEMPTION 301,000 301,000
------------------------------------------------
TOTAL PREFERRED STOCK 6.9% 472,200 0 472,200 6.9%
COMMON EQUITY:
COMMON SHARES 680,259 680,259
CAPITAL SURPLUS, PAID IN 944,965 944,965
DEFERRED BENEFIT PLAN-EMPLOYEE STOCK
OWNERSHIP PLAN (193,837) (193,837)
RETAINED EARNINGS 1,016,660 (32,815) 983,845
------------------------------------------------
TOTAL COMMON STOCKHOLDER'S EQUITY 35.8% 2,448,047 (32,815) 2,415,232 35.5%
------------------------------------------------
TOTAL CAPITAL 100.0%$6,839,538 (32,815) $6,806,723 100.0%
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
EXPLANATION OF ADJUSTMENTS
(THOUSANDS OF DOLLARS)
FINANCIAL STATEMENT 7.2 PAGE 3 OF 3
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
DEBIT CREDIT
(a) CASH $910,000
NOTES PAYABLE $910,000
To record the additional proposed borrowing up to an aggregate amount of $950 million that will be available to all
applicants seeking authorization to borrow outside the NU system. The consolidated amount being requested
excludes NAEC and HWP which will only be able to borrow internally through the Money Pool.
NU (Parent) $200,000
CL&P 375,000
WMECO 150,000
PSNH 225,000
-------------------
SUM 950,000
(less currently
outstanding 40,000
-------------------
$910,000
(b) OTHER INTEREST EXPENSE 54,691
ACCRUED INTEREST 54,691
To record the interest expense on the additional proposed borrowing at LIBOR as of 6/10/96 [5.46%]+ 0.55%:
$910,000 x 6.01% = 54,691
(c) ACCRUED TAXES 21,876
FEDERAL AND STATE INCOME TAX EXPENSE 21,876
To record the reduction in Federal and State income taxes due to the higher interest and fee expenses:
$54,691 x 40.00% = 21,876
NOTE 1 : The LIBOR rate and tax rate reflected above represent the current rates in effect as of the filing date.
NOTE 2 : Proforma financials reflect company borrowings at the proposed SEC limit and the associated interest expense
without reflecting equity or interest earnings of such borrowings.
</TABLE>
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