File No. 70-8825
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
POST-AMENDMENT NO. 1
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 as follows:
1. By adding the following section at the end of Item 1. Description of
Proposed Transaction:
"5. Release of Jurisdiction over Marketing, Brokering and Certain
Related Activities.
"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;
"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;
"C. to the extent incidental and reasonably necessary to the
commercialization, realization or day to day conduct of the above activities,
engage in the performance and sale of services (including but not limited to
construction, consulting, maintenance/repair, diagnostics/preventative care,
sales/representation, marketing/distribution, contract operation, facilities
licensing/permitting assistance, safety inspection, fuel procurement,
delivery, management and sale, transportation and fleet vehicle management,
environmental licensing, testing and remediation, credit and collections
management, including billing services, and personnel training and
development services) and the development, licensing and sale of intellectual
property (e.g., software, training, data, patents);
"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, 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."
2. By adding the following sentence to Item 2. Fees, Commissions and
Expenses: "No additional expenses are expected to be incurred in connection
with this Post-Effective Amendment No. 1."
3. By adding the following paragraph at the end of Item 5. Procedure:
"The Applicants respectfully request that the Commission enter as soon
as possible, but no later than October 18, 1996 an appropriate order
releasing jurisdiction over the Marketing Activities and granting and
permitting this Application/Declaration to become effective with respect to
the Marketing Activities."
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 4, 1996
