File No. 70-8825
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
POST-EFFECTIVE
AMENDMENT NO. 2
TO FORM U-1
APPLICATION/DECLARATION WITH RESPECT TO DIVERSIFICATION
ACTIVITIES UNDER THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
NORTHEAST UTILITIES PUBLIC SERVICE COMPANY OF
WESTERN MASSACHUSETTS ELECTRIC COMPANY NEW HAMPSHIRE
THE QUINNEHTUK COMPANY NORTH ATLANTIC ENERGY
174 Brush Hill Avenue CORPORATION
West Springfield, MA 01090 1000 Elm Street
Manchester, NH 03105
NORTHEAST UTILITIES SERVICE COMPANY NORTH ATLANTIC ENERGY
THE CONNECTICUT LIGHT AND POWER COMPANY SERVICE CORPORATION
NORTHEAST NUCLEAR ENERGY COMPANY Route 1, Lafayette Road
THE ROCKY RIVER REALTY COMPANY Seabrook, NH 03874
107 Selden Street
Berlin, CT 06037
(Name of company or companies filing this statement
and addresses of principal executive offices)
NORTHEAST UTILITIES
(Name of top registered holding company parent of each
applicant or declarant)
Robert P. Wax, Esq.
Vice President, Secretary and General Counsel
Northeast Utilities
P. O. Box 270
Hartford, CT 06141-0270
(Name and address of agent for service)
The Commission is requested to mail signed copies of all orders,
notices and communications to:
Jeffrey C. Miller, Esq. John T. Muro
Assistant General Counsel Vice President - Retail Marketing
Northeast Utilities Service Company Northeast Utilities Service Company
107 Selden Street 107 Selden Street
Berlin, CT 06037 Berlin, CT 06037
The Application/Declaration in File No. 70-8825, as heretofore amended, is
hereby amended by replacing Section 5 of Item 1. Description of Proposed
Transaction with the following:
"Pursuant to an order (the "Order") issued by the Commission on August
13, 1996 in this proceeding (Holding Company Act Rel. No. 35-26554), the
Applicants were authorized to engage in certain activities defined as the
"Pilot Program Activities" and the "Wholesale Marketing Activities", and the
Commission reserved jurisdiction over the remaining "Diversification
Activities" described in the Application/Declaration, as amended. Applicants
now respectfully request that the Commission release jurisdiction over the
following Diversification Activities (the "Marketing Activities"), to the
extent not already released:
"A. the brokering, marketing, transportation, transmission,
distribution, storage and sale of energy (including but not limited to
electricity, natural or manufactured gas, oil, coal, refined petroleum,
refined petroleum products, and natural gas liquids) at wholesale and
retail (including participation in pilot or other retail competition
activities in the United States), including the ownership, operation,
installation, sale, leasing or renting, operation and servicing of fuel
procurement, transportation, handling and storage facilities, scrubbers,
and resource recovery and waste treatment facilities; and
"B. the development, brokering and marketing of paper products such
as futures, hedges, load aggregations, fuel tolling, fuel conversions, and
other instruments expected to be required in a competitive energy
marketplace, including risk-reduction measures to limit potential losses
from Diversification Activities and risks to the NU System, its customers
and shareholders, including hedging techniques, in accordance with system
policy, and contractual arrangements with suppliers and customers;
"provided, however, that no Applicant or NEWCO will engage in retail sales
of electricity or natural gas in any state unless authorized or permitted
to make such sales under applicable state laws, regulations or orders; and
"provided, further, that no Applicant or NEWCO will sell electricity to the
Operating Companies absent appropriate FERC approvals; and
"provided, further, that no Applicant (other than the Operating Companies)
or NEWCO will acquire any assets if, as a result of the transaction, it
would become a "public utility company" within the meaning of the Act; and
"provided, further, that no Applicant or NEWCO will engage in speculative
hedging in connection with Diversification Activities and the Applicants
and NEWCOs will limit any hedging activities to no more than the total
amount of energy commodities that the Applicants and NEWCOs are or are
expected to deal in which are or will be subject to market price
fluctuations; and
"provided, further, that Applicants request the Commission to reserve
jurisdiction over any Marketing Activities to be performed outside the
United States, as well as over all Diversification Activities other than the
Marketing Activities, the Pilot Program Activities, and the Wholesale
Marketing Activities, pending completion of the record in this matter.
"The Applicants and NEWCOs will seek to hedge the risks associated
with the purchase, sale, or trade of energy commodities through a
combination of physical assets, balanced physical purchases and sales,
purchases and sales on futures markets, or other derivative risk management
tools. The Operating Companies undertake that they will not seek recovery
through higher rates to retail franchise customers to compensate for any
possible losses that may be sustained on investments in NEWCOs or
Diversification Activities, or for any inadequate returns on such
investments.
"Applicants and any affected NEWCO shall file quarterly certificates of
notification, to be filed no later than forty-five (45) days after the end of
each calendar quarter, and within one hundred and twenty (120) days after the
end of each year, concerning the Marketing Activities, which certificates of
notification shall contain, inter alia, the following information: (i) a
description of the Marketing Activities undertaken during the quarter with a
copy of any applicable state regulatory approval of said program and/or the
applicable energy tariff, (ii) a statement indicating as a percentage of
total revenues for the period, the amount of revenues attributable to energy
sales, and (iii) an income statement and balance sheet."
SIGNATURES
Pursuant to the requirements of the Public Utility Holding Company Act
of 1935, the undersigned companies have duly caused this amendment to be
signed on their behalf by the undersigned thereunto duly authorized.
NORTHEAST UTILITIES
NORTHEAST UTILITIES SERVICE COMPANY
NORTHEAST NUCLEAR ENERGY COMPANY
THE ROCKY RIVER REALTY COMPANY
THE QUINNEHTUK COMPANY
NORTH ATLANTIC ENERGY SERVICE CORPORATION
NORTH ATLANTIC ENERGY CORPORATION
THE CONNECTICUT LIGHT AND POWER COMPANY
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
WESTERN MASSACHUSETTS ELECTRIC COMPANY
By:/s/ Richard M. Early
Their Attorney
Dated: October 9, 1996
