UNITED STATES OF AMERICA
before the
SECURITIES AND EXCHANGE COMMISSION
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
In the matter of
HEC Inc. Report for Period
24 Prime Parkway April 1, 1996 to
Natick, MA 01760 June 30, 1996
Pursuant to Rule 24
File Nos. 70-8076 and 70-8086
This report is filed under Rule 24 of the Public Utility Holding Company Act
of 1935 by HEC Inc.(HEC), a wholly owned subsidiary of Northeast Utilities, a
registered holding company. Pursuant to HCAR Nos. 35-26108 and 35-26335 (the
"Orders"), HEC is authorized to provide energy management services, demand
side management services and consulting services. HEC is required to report
quarterly on services provided during the previous quarter. Accordingly,
this report includes the following information:
1. A summary balance sheet and an income statement (unaudited) for the
three-month period ended June 30, 1996. See Exhibit A.
2. A narrative description of HEC's activities undertaken during the
quarter and the type of customers for which services were rendered. Exhibit
B.
As requested by order of this Commission pursuant to the Public Utility
Holding Company Act of 1935, HEC has duly caused this report to be signed on
the 14th day of August 1996.
HEC Inc.
By:/s/Linda A. Jensen
Vice President - Finance
EXHIBIT A
HEC INC.
BALANCE SHEET - June 30, 1996
ASSETS
CURRENT ASSETS: 1996
-----------
Cash and cash equivalents $1,044,129
Contract receivables, current,
less allowance for uncollectibles of $298,000 4,271,183
Unbilled contracts receivable 1,237,476
Other current assets 276,364
-----------
Total current assets 6,829,152
-----------
PROPERTY AND EQUIPMENT 3,880,918
Less accumulated
depreciation and amortization 1,919,818
-----------
Net property and equipment 1,961,100
-----------
OTHER ASSETS 96,560
TOTAL ASSETS $ 8,886,812
===========
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES:
Accounts Payable $2,592,312
Accrued Expenses 1,159,967
Accured Income Taxes 44,031
Short-Term Borrowing NU Moneypool 725,000
-----------
Total current liabilities 4,521,310
-----------
OTHER LIABILITIES:
Deferred income tax liability 387,504
Other 366,691
-----------
Total other liabilities 754,195
-----------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDER'S EQUITY
Common stock, $1 par value.
Authorized and issued 100 shares 100
Additional paid-in-capital 4,000,000
Foreign Currency Exchange (261)
Accumulated Deficit (388,532)
-----------
Total stockholder's equity 3,611,307
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 8,886,812
============
HEC INC.
STATEMENT OF OPERATION
FOR THE QUARTER ENDED JUNE 30, 1996
REVENUES $9,810,807
COST OF REVENUES 8,860,709
----------
Gross profit 950,098
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 826,437
----------
Operating income 123,661
----------
INTEREST INCOME (EXPENSE)
Interest income 72,081
Interest expense (13,541)
----------
58,540
----------
Income before income tax expense 182,201
INCOME TAX EXPENSE 72,821
Net Income (Loss) $109,380
==========
EXHIBIT B
HEC INC.
REPORT FOR APRIL 1 - JUNE 30, 1996
NARRATIVE DESCRIPTION OF SERVICES
Energy Management Services
HEC provided the following services to clients in the period: energy audits
(the identification of energy and other resource cost reduction
opportunities); design of energy conservation measures including energy
efficient lighting, energy efficient motors, energy management systems,
heating, ventilating and air conditioning equipment retrofits, variable speed
drives; the management of and direct installation of energy conservation
equipment of the same type designed; assistance in identifying and arranging
third-party financing for project installations; training of client personnel
in the operation of installed equipment; system commissioning and reporting
of program results. The majority of these services were performed for
schools, hospitals and other municipal facilities under utility-sponsored
programs. Other services provided consisted primarily of evaluation of
various heating and/or air conditioning equipment configurations for
customers or utilities and monitoring and/or evaluating the demand side
management program installations of non-affiliated utilities.
HEC consulting activities consisted primarily of design and specification of
energy consuming equipment for clients including schools, hospitals and
commercial facilities.
