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 January 1, 1996 to
Natick, MA 01760 March 31, 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 March 31, 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
twenty-third day of April 1996.
HEC Inc.
By:/s/Linda A. Jensen
Vice President - Finance
EXHIBIT A
HEC INC.
BALANCE SHEET - March 31, 1996
ASSETS
CURRENT ASSETS: 1996
-----------
Cash and cash equivalents $1,131,867
Contract receivables, current,
less allowance for uncollectibles of $298,000 5,222,080
Other current assets 227,777
-----------
Total current assets 6,581,724
-----------
PROPERTY AND EQUIPMENT 3,840,825
Less accumulated
depreciation and amortization 1,815,563
-----------
Net property and equipment 2,025,262
-----------
OTHER ASSETS 97,019
TOTAL ASSETS $ 8,704,005
===========
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES:
Accounts Payable $3,110,122
Accrued Expenses 284,109
Accured Income Taxes 294,370
Short-Term Borrowing NU Moneypool 925,000
-----------
Total current liabilities 4,613,601
-----------
OTHER LIABILITIES:
Deferred income tax liability 278,666
Other 310,112
-----------
Total other liabilities 588,778
-----------
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 (563)
Accumulated Deficit (497,911)
-----------
Total stockholder's equity 3,501,626
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 8,704,005
============
HEC INC.
STATEMENT OF OPERATION
FOR THE QUARTER ENDED MARCH 31, 1996
REVENUES $8,760,462
COST OF REVENUES 7,694,360
----------
Gross profit 1,066,102
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 876,177
----------
Operating income 189,925
----------
INTEREST INCOME (EXPENSE)
Interest income 45,711
Interest expense (23,372)
----------
22,339
----------
Income before income tax expense 212,264
INCOME TAX EXPENSE 96,880
Net Income (Loss) $115,384
==========
EXHIBIT B
HEC INC.
REPORT FOR JANUARY 1 - MARCH 31, 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.
