June 12, 1998
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20459-1004
Gentlemen:
Pursuant to the requirements of the Public Utility Holding Company Act of 1935
submitted herewith is the Annual Report on Form U5S/A (Amendment 1) for the year
ended December 31, 1997 for the Northeast Utilities system.
Very truly yours,
/s/ Wayne S. Chapman
Wayne S. Chapman
COMMISSION FILE NUMBER: 30-246
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
FORM U5S/A
ANNUAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 1997
(AMENDMENT NO. 1)
FILED PURSUANT TO THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 BY
NORTHEAST UTILITIES
174 BRUSH HILL AVENUE, WEST SPRINGFIELD, MASSACHUSETTS 01090-0010
(CORPORATE ADDRESS)
SELDEN STREET, BERLIN, CONNECTICUT 06037-1616
(PRINCIPAL HEADQUARTERS)
NORTHEAST UTILITIES
FORM U5S/A ANNUAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 1997
TABLE OF CONTENTS
ITEM PAGE
9. Wholesale Generators and Foreign Utility Companies 2
10. Financial Statements and Exhibits
Securities and Exchange Commission Inquiry 3
Exhibit I - Audited 1997 Financial Reports of
Plantas Eolicas S.A. a Foreign Utility Company 4-7
Signature F-1
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES
Part I.
1(a) Identification of Company:
1. Company: Plantas Eolicas S.A.
2. Location: 29th Street, 3rd and 5th Avenues
San Jose, Costa Rica
3. Business address: Same
4. Description: A Costa Rican company whose sole purpose is
to own and operate a 20-MW wind facility
located in the Republic of Costa Rica which
began commercial operation in June 1996.
5. System company that
holds interest: COE Tejona Corporation, a
Connecticut corporation.
6. EWG or FUCO: FUCO
(b) Capital investment in company by NU, direct or indirect:
1. Type: Capital Contribution
2. Amount: $17.1 million
3. Debt: None
4. Other financial obligations with recourse to NU or another system
company: None
5. Guarantees by NU: $20,000
Transfer of assets to an affiliated EWG or FUCO:
1. Market value: None
2. Book value: None
3. Sale price: None
(c) State the ratio of debt to common equity and earnings as of December
31, 1997:
1. Ratio of debt to common equity: 0.00
2. Earnings/(Loss) for the period ended 12/31/97:
$(163,530) U.S. Dollars
(d) Services, Sales, or Construction Contracts: None
Item 10: Financial Statements and Exhibits
Securities and Exchange Commission (SEC) Inquiry
The SEC inquired into the Northeast Utilities (NU) system's accounting for
nuclear compliance costs. These costs are the unavoidable incremental costs
associated with the current nuclear outages required to be incurred prior to
restart of the units in accordance with correspondence received from the NRC
early in 1996. The SEC's view is that these unavoidable costs associated with
nuclear outages and procedures to be implemented at nuclear power plants in
response to regulatory requirements required prior to restart of the units
should be expensed as incurred. During 1996 and 1997, NU and its wholly owned
subsidiaries, The Connecticut Light and Power Company (CL&P), Public Service
Company of New Hampshire (PSNH) and Western Massachusetts Electric Company
(WMECO), reserved for these unavoidable incremental costs that they expected to
incur to meet NRC standards. The SEC advised NU, CL&P, PSNH and WMECO to
reflect these costs as they are incurred. While NU and its independent
auditors, Arthur Andersen LLP, believed the accounting was required by, and was
in accordance with, generally accepted accounting principles, the company has
agreed to adjust its accounting for nuclear compliance costs and amend its 1996
and 1997 Form 10-K filings. This amendment on Form U5S/A incorporates by
reference Items 8 and 14 of the 1997 Form 10-K/As of NU, CL&P, PSNH and WMECO
which reflect the change in accounting.
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS
EXHIBIT I.
PLANTAS EOLICAS, S.A.
(San Jose, Costa Rica)
Balance Sheet
December 31, 1997
(In U.S. Dollars)
1997
Assets
Property, windplant and equipment, net 12,039,329
Transmission line construction, at cost -
Deferred income taxes 122,636
Other assets 1,549
12,163,514
Current assets:
Cash and cash equivalents 370,366
Accounts receivable 542,579
Prepaid expenses 6,384
Deferred income taxes 102,679
Total current assets 1,022,008
Total assets 13,185,522
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 126,967
Accrued expenses 217,654
Total current liabilities 344,621
Stockholders' equity:
Common stock, authorized and issued 30 shares
of 1,000 Costa Rican colones, par value each 161
Additional paid-in capital 15,141,326
Accumulated deficit:
Incurred during development stage -
Balance at beginning of year (2,137,056)
Net operating losses (163,530)
Total accumulated deficit (2,300,586)
Stockholders' equity, net 12,840,901
Total liabilities and stockholders' equity 13,185,522
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS
EXHIBIT I.
PLANTAS EOLICAS, S.A.
Statement of Operations
Year Ended December 31, 1997
(In U.S. Dollars)
1997
Income-sales of electric power to ICE 5,084,449
Cost of electric energy generation:
Depreciation 841,184
Operations and maintenance 2,234,592
Other 95,817
Total cost of generation of electric energy 3,171,593
Gross profit (loss) 1,912,856
General and administrative expenses 404,951
Earnings (loss) from operations 1,507,905
Other expenses, net:
Interest 6,285
Miscellaneous, net 198,049
Loss on foreign currency remeasurement 64,002
Total other expenses 268,336
Earnings (loss) before extraordinary item
and deferred income taxes 1,239,569
Extraordinary item - donation of transmission line (1,628,414)
Net loss before deferred income taxes (388,845)
Deferred income taxes 225,315
Net loss (163,530)
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS
EXHIBIT I.
PLANTAS EOLICAS, S.A.
Statement of Cash Flows
Year Ended December 31, 1997
(In U.S. Dollars)
1997
Sources (uses) of cash:
Preoperating activities:
Organization and preoperating expenses -
Operating activities:
Net loss (163,530)
Adjustment to reconcile net loss to
net cash provided by operating activities:
Depreciation 862,063
Provision for contingencies 184,396
Donation of transmission line 1,628,414
Deferred income taxes (225,315)
Loss on foreign currency remeasurement 64,002
Cash provided by operating activities 2,350,030
Net changes in assets and liabilities:
Accounts receivable (181,488)
Prepaid expenses (5,834)
Accounts payable 59,580
Accrued expenses 26,706
Net cash provided by (used for)
preoperating and operating activities 2,248,994
Cash flows from investing activities:
Additions to windplant and transmission
line construction (146,349)
Additions to property, equipment and vehicles -
Other assets (1,276)
Net cash used for investing activities (147,625)
Cash flows from financing activities:
Proceeds from common stock issue -
Proceeds from additional paid-in capital -
Repayment of additional paid-in capital (1,750,000)
Net cash provided by (used for)
financing activities (1,750,000)
Effect of exchange rate changes on cash (99,230)
Net increase in cash and cash equivalents 252,139
Cash at beginning of period 118,227
Cash and cash equivalents at end of period 370,366
ITEM 10. FINANCIAL STAATEMENTS AND EXHINITS
EXHIBIT I.
PLANTAS EOLICAS, S.A.
Statement of Changes in Stockholder's Equity
Year Ended December 31, 1997
(In U.S. Dollars)
<TABLE>
<CAPTION>
Accumulated Deficit
Incurred
Additional During Net Total
Common Paid-In Development Operating Accumulated Stockholders'
Stock Capital Stage Losses Deficit Equity, Net
<S> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1996 161 16,891,326 (2,036,785) (100,271) (2,137,056) (14,754,431)
Repayment of additional paid-in capital
to Parent Company - (1,750,000) - - - (1,750,000)
Net loss for year - - - (163,530) (163,530) (163,530)
Balance at December 31, 1997 161 15,141,326 (2,036,785) (263,801) (2,300,586) 12,840,901
</TABLE>
SIGNATURE
Northeast Utilities, a registered holding company, has duly caused this report
to be signed on its behalf by the undersigned thereunto duly authorized,
pursuant to the requirements of the Public Utility Holding Company Act of 1935.
NORTHEAST UTILITIES
By: /s/ John J. Roman
John J. Roman
Vice President and Controller
June 10, 1998
