FILE NO. 70-09541
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDMENT NO. 1
TO
FORM U-1
APPLICATION/DECLARATION UNDER THE
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
WITH RESPECT TO THE PAYMENT OF DIVIDENDS, SHARE REPURCHASES AND SHARE
ISSUANCES IN CONNECTION WITH RESTRUCTURING BY NORTHEAST UTILITIES
AND CERTAIN SUBSIDIARIES
Northeast Utilities
Western Massachusetts Electric Company
174 Brush Hill Avenue
West Springfield, MA 01090
The Connecticut Light and Power Company
NU Enterprises, Inc.
Northeast Generation Company
Northeast Generation Services Company
Select Energy, Inc.
Select Energy Portland
Pipeline, Inc.
107 Selden Street
Berlin, CT 06037
Public Service Company of New Hampshire
North Atlantic Energy Corporation
1000 Elm Street
Manchester, NH 03015
HEC Inc.
Select Energy Contracting, Inc.
24 Prime Parkway
Natick, MA 01760
Reeds Ferry Supply Co., Inc.
605 Front Street
Manchester, NH 03102
HEC Energy Consulting Canada Inc.
242 Simcoe Street
Niagara on the Lake
Ontario, Canada LOS1J0
Holyoke Water Power Company
Holyoke Power and Electric Company
One Canal Street
Holyoke, MA 01040
(Names of companies filing this statement and addresses of principal
executive offices)
NORTHEAST UTILITIES
(Name of top registered holding company)
Cheryl W. Grise
Senior Vice President, Secretary and General Counsel
Northeast Utilities Service Company
107 Selden Street
Berlin, CT 06037
(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.
Assistant General Counsel
Northeast Utilities Service Company
107 Selden Street
Berlin, CT 06037
David R. McHale
Vice President and Treasurer
Northeast Utilities Service Company
107 Selden Street
Berlin, CT 06037
The Application/Declaration in this File is hereby amended by the filing of the
following exhibits:
(a) Exhibits
F. Opinion of Counsel
G. Financial Data Schedules
(b) Financial Statements
1. Northeast Utilities and Subsidiaries (consolidated)
1.1 Balance Sheet, per books and pro forma, as of June 30, 1999.
1.2 Statement of Income, per books and pro forma, for 12 months
ended June 30, 1999 and capital structure, per books and pro
forma, as of June 30, 1999.
2. Northeast Utilities (parent company only).
2.1 Balance Sheet, per books and pro forma, as of June 30, 1999.
2.2 Statement of Income and Surplus, per books and pro forma, for
12 months ended June 30, 1999 and capital structure, per books
and pro forma, as of June 30, 1999.
3. The Connecticut Light and Power Company
3.1 Balance Sheet, per books and pro forma, as of June 30, 1999.
3.2 Statement of Income and Surplus, per books and pro forma, for
12 months ended June 30, 1999 and capital structure, per books
and pro forma, as of June 30, 1999.
4. Public Service Company of New Hampshire
4.1 Balance Sheet, per books and pro forma, as of June 30, 1999.
4.2 Statement of Income and Surplus, per books and pro forma,
for 12 months ended June 30, 1999 and capital structure,
per books and pro forma, as of June 30, 1999.
5. Western Massachusetts Electric Company
5.1 Balance Sheet, per books and pro forma, as of June 30, 1999.
5.2 Statement of Income and Surplus, per books and pro forma, for
12 months ended June 30, 1999 and capital structure, per books
and pro forma, as of June 30, 1999.
6. North Atlantic Energy Corporation
6.1 Balance Sheet, per books and pro forma, as of June 30, 1999.
6.2 Statement of Income and Surplus, per books and pro forma, for
12 months ended June 30, 1999 and capital structure, per books
and pro forma, as of June 30, 1999.
SIGNATURES
Pursuant to the requirements of the Public Utility Holding Company Act of 1935,
as amended, the undersigned companies have duly caused this Amendment to be
signed on their behalf by the undersigned thereunto duly authorized.
NORTHEAST UTILITIES
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
WESTERN MASSACHUSETTS ELECTRIC COMPANY
NORTH ATLANTIC ENERGY CORPORATION
NU ENTERPRISES, INC.
NORTHEAST GENERATION COMPANY
NORTHEAST GENERATION SERVICES COMPANY
SELECT ENERGY, INC.
HOLYOKE WATER POWER COMPANY
HOLYOKE POWER AND ELECTRIC COMPANY
SELECT ENERGY PORTLAND PIPELINE, INC.
By:
/s/ David R. McHale
Vice President and Treasurer
Date: September 15, 1999
HEC INC.
REEDS FERRY SUPPLY CO, INC.
SELECT ENERGY CONTRACTING, INC.
HEC ENERGY CONSULTING CANADA, INC.
By:
/s/ David R. McHale
Assistant Treasurer
Date: September 15, 1999
THE CONNECTICUT LIGHT AND POWER COMPANY
By:
/s/ Randy A. Shoop
Treasurer
Date: September 15, 1999
EXHIBIT F
September 14, 1999
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Northeast Utilities
SEC File Number 70-09541
Ladies and Gentlemen:
I am Assistant General Counsel of Northeast Utilities Service Company
("NUSCO"), a service company affiliate of Northeast Utilities ("NU"). I have
acted as counsel for NU and its subsidiaries who are parties to the
Application/Declaration on Form U-1 in File No. 70-09541 ("Declaration") in
connection with its filing on August 26, 1999 with the Securities and Exchange
Commission ("Commission") (NU and its subsidiaries who are parties to the
Declaration are referred to collectively herein as the "Applicants"). In the
Declaration, the Applicants sought the approval of the Commission for the
proposed transaction described therein ("Proposed Transactions").
Specifically, the Applicants sought Commission approval of (a) the payment of
dividends to, and/or the repurchase of stock from, each subsidiaries'
respective shareholder/parent company out of capital or unearned surplus by
each subsidiary, (b) the payment of dividends to, and/or the repurchase of
shares from, its shareholders out of capital or unearned surplus by NU; (c) the
issuance of additional shares by NU to the extent necessary to fulfill certain
of its obligations under one or more forward stock purchase contracts (the
"Forwards"); and (d) the payment of dividends and/or the repurchase of stock
out of capital or unearned surplus by The Connecticut Light and Power Company
to NU under its Mortgage Indenture dividend covenant (collectively, the
"Proposed Transactions").
In connection with this opinion, I have examined or caused to be examined by
counsel associated with or engaged by me, including counsel who are employed by
NUSCO, originals or copies certified to my satisfaction of such corporate
records of the Applicants, certificates of public officials and of officers
of the Applicants, and agreements, instruments and other documents, as I have
deemed necessary as a basis for the opinions expressed below. In my
examination of such agreements, instruments and documents, I have assumed the
genuineness of all signatures, the authenticity of all agreements, instruments
and documents submitted to me as originals, and the conformity to original
agreements, instruments and documents of all agreements, instruments and
documents submitted to me as certified, conformed or photostatic copies and the
authenticity of the originals of such copies.
The opinions set forth herein are limited to the laws of the Commonwealth of
Massachusetts, the State of Connecticut and the federal laws of the United
States. I am a member of the bar of the State of New York. I am not a member
of the bar of the Commonwealth of Massachusetts nor of the bar of the State of
Connecticut, and do not hold myself out as an expert in the laws of such
Commonwealth and State. In expressing opinions about matters governed by the
laws of the Commonwealth of Massachusetts, I have consulted with counsel who
are employed by NUSCO and are members of the bar of such Commonwealth. In
expressing opinions about matters governed by the laws of the State of
Connecticut, I have consulted with counsel who are employed by NUSCO and are
members of the bar of such State.
I have assumed that the Proposed Transactions are carried out in conformity
with the Securities Act of 1933 and the Securities Exchange Act of 1934, each
as amended, and the requisite authorizations, approvals, consents or exemptions
under the securities laws of the various States and other jurisdictions of the
United States.
Based upon and subject to the foregoing, and assuming that the Proposed
Transactions are carried out in accordance with the Declaration, I am of the
opinion that, when the Commission shall have entered an order forthwith
granting the Declaration:
(a) all State laws applicable to the Proposed Transactions will have been
complied with;
(b) each of the Applicant is validly organized and existing under the laws
of its state of organization;
(c) if, and when, issued pursuant to the Forwards, the common shares of NU
will be validly issued, fully paid and nonassessable, and the holders
thereof will be entitled to the rights and privileges appertaining thereto
set forth in the Declaration of Trust of NU;
(d) the Applicants will legally acquire the shares of their respective stock
being repurchased from their respective shareholder; and
(e) the consummation of the Proposed Transactions will not violate the legal
rights of the holders of any securities issued by NU or any associate
company thereof.
I hereby consent to the filing of this opinion as an exhibit to the Declaration
and in any proceedings before the Commission that may be held in connection
therewith.
Very truly yours,
/s/ Jeffrey C. Miller
Jeffrey C. Miller
Assistant General Counsel
<TABLE> <S> <C>
<ARTICLE> OPUR1
<CIK> 0000072741
<NAME> NU CONSOLIDATED
<MULTIPLIER> 1000
<S> <C> <C>
<FISCAL-YEAR-END> DEC-31-1998 DEC-31-1998
<PERIOD-END> JUN-30-1999 JUN-30-1999
<PERIOD-TYPE> YEAR YEAR
<BOOK-VALUE> PER-BOOK PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 6,110,287 4,300,442
<OTHER-PROPERTY-AND-INVEST> 891,645 891,645
<TOTAL-CURRENT-ASSETS> 1,067,485 2,322,876
<TOTAL-DEFERRED-CHARGES> 2,279,109 3,623,546
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 10,348,526 11,138,509
<COMMON> 686,188 686,188
<CAPITAL-SURPLUS-PAID-IN> 940,448 940,448
<RETAINED-EARNINGS> 579,449 314,759
<TOTAL-COMMON-STOCKHOLDERS-EQ> 2,073,662 1,808,972
141,039 0
136,200 116,200
<LONG-TERM-DEBT-NET> 3,151,013 4,099,866
<SHORT-TERM-NOTES> 258,000 19,375
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 203,232 176,732
0 0
<CAPITAL-LEASE-OBLIGATIONS> 79,628 (613,913)
<LEASES-CURRENT> 120,258 120,258
<OTHER-ITEMS-CAPITAL-AND-LIAB> 4,053,071 5,278,596
<TOT-CAPITALIZATION-AND-LIAB> 10,348,526 11,138,509
<GROSS-OPERATING-REVENUE> 4,015,975 4,843,495
<INCOME-TAX-EXPENSE> 103,491 136,832
<OTHER-OPERATING-EXPENSES> 3,658,411 4,514,952
<TOTAL-OPERATING-EXPENSES> 3,761,902 4,651,784
<OPERATING-INCOME-LOSS> 254,073 191,711
<OTHER-INCOME-NET> (79,846) 19,013
<INCOME-BEFORE-INTEREST-EXPEN> 174,227 210,724
<TOTAL-INTEREST-EXPENSE> 266,444 342,631
<NET-INCOME> (92,217) (356,907)
(24,189) (24,189)
<EARNINGS-AVAILABLE-FOR-COMM> 579,449 314,759
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 267,175 343,362
<CASH-FLOW-OPERATIONS> 0 0
<EPS-BASIC> 0 0
<EPS-DILUTED> 0 0
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
1.1a PRO FORMA BALANCE SHEET--ASSETS
AS OF JUNE 30, 1999
Unaudited
(Thousands of Dollars)
<TABLE>
<CAPTION>
PRO
FORMA
GIVING
PRO FORMA EFFECT TO
PER BOOK ADJUSTMENTS ADJUSTMENTS
<S> <C> <C> <C>
Utility Plant, at cost:
Electric $ 9,608,526 $ (1,899,533)$ 7,708,993
Other 195,832 195,832
----------- ---------- -----------
9,804,358 (1,899,533) 7,904,825
Less: Accum. provision for depreciation 4,376,454 (184,384) 4,192,070
----------- ---------- -----------
5,427,904 (1,715,149) 3,712,755
Unamortized PSNH acquisition costs 338,646 (92,618) 246,028
Construction work in progress 188,881 188,881
Nuclear fuel, net 154,856 (2,078) 152,778
----------- ---------- -----------
Total net utility plant 6,110,287 (1,809,845) 4,300,442
----------- ---------- -----------
Other Property and Investments:
Investment in subsidiary companies 0 0 0
Nuclear decommissioning trusts, at market 667,499 667,499
Investments in regional nuclear generating
companies, at equity 87,330 87,330
Other 136,816 136,816
----------- ---------- -----------
891,645 0 891,645
----------- ---------- -----------
Current Assets:
Cash and cash equivalents 220,318 941,146 1,161,464
Investments in securitizable assets 68,660 92,921 161,581
Receivables, net 342,518 342,518
Accrued utility revenues 75,810 75,810
Taxes receivable 0 293,463 293,463
Receivables from affiliated companies 0 0 0
Fuel, materials, and supplies, at average cost 198,338 (75,554) 122,784
Recoverable energy costs, net--current portion 78,589 78,589
Prepayments and other 83,252 3,415 86,667
----------- ---------- -----------
1,067,485 1,255,391 2,322,876
----------- ---------- -----------
Deferred Charges:
Regulatory assets:
Income taxes, net 701,512 (80,425) 621,087
Millstone 1 528,650 528,650
Deferred costs--nuclear plants 150,192 (118,651) 31,541
Unrecovered contractual obligations 373,467 373,467
Securitizable assets 0
Recoverable energy costs, net 284,955 (31,972) 252,983
Other 116,955 1,557,385 1,674,340
Deferred receivable from affiliated company 0 0 0
Unamortized debt expense 36,198 22,189 58,387
Other 87,180 (4,089) 83,091
----------- ---------- -----------
2,279,109 1,344,437 3,623,546
----------- ---------- -----------
Total Assets $ 10,348,526 $ 789,983 $ 11,138,509
=========== ========== ===========
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
1.1b PRO FORMA BALANCE SHEET--CAPITALIZATION AND
LIABILITES
AS OF JUNE 30, 1999
Unaudited
(Thousands of dollars)
<TABLE>
<CAPTION>
PRO
FORMA
GIVING
PRO FORMA EFFECT TO
PER BOOK ADJUSTMENTS ADJUSTMENTS
<S> <C> <C> <C>
Capitalization:
Common Stock $ 686,188 $ 0 $ 686,188
Capital surplus, paid in 940,448 0 940,448
Deferred contribution plan--
employee stock ownership plan (133,947) (133,947)
Retained earnings 579,449 (264,690) 314,759
Accumulated other comprehensive income 1,524 1,524
----------- ---------- -----------
Total common stockholders' equity 2,073,662 (264,690) 1,808,972
Preferred stock not subject to mandatory
redemption 136,200 (20,000) 116,200
Preferred stock subject to mandatory
redemption 141,039 (141,039) 0
Long-term debt 3,151,013 (1,567,947) 1,583,066
----------- ---------- -----------
Total capitalization 5,501,914 (1,993,676) 3,508,238
----------- ---------- -----------
Minority Interest in Consolidated Subsidiaries 100,000 (100,000) 0
----------- ---------- -----------
Obligations Under Capital Leases 79,628 (693,541) (613,913)
----------- ---------- -----------
Rate Reduction Bond Obligation 2,516,800 2,516,800
----------- ---------- -----------
Current Liabilities:
Notes payable to banks 258,000 (238,625) 19,375
Long-term debt and preferred stock
- current portion 203,232 (26,500) 176,732
Obligations under capital leases
- current portion 120,258 120,258
Accounts payable 480,430 (8,250) 472,180
Accounts payable to affiliated companies 0 0 0
Accrued taxes 67,006 (23,302) 43,704
Accrued interest 46,245 92,727 138,972
Accrued pension benefits 5,618 5,618
Other 90,154 90,154
----------- ---------- -----------
1,270,943 (203,950) 1,066,993
----------- ---------- -----------
Deferred Credits and Other Long-term
Liabilities:
Accumulated deferred income taxes 1,811,673 204,520 2,016,193
Accumulated deferred investment tax credits 138,858 138,858
Decommissioning obligation--Millstone 1 692,000 692,000
Deferred contractual obligations 385,389 385,389
Deferred obligation to affiliated company 0 0 0
Other 368,121 1,059,830 1,427,951
----------- ---------- -----------
3,396,041 1,264,350 4,660,391
----------- ---------- -----------
Total Capitalization and Liabilities $ 10,348,526 $ 789,983 $ 11,138,509
=========== ========== ===========
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
1.2a PRO FORMA INCOME STATEMENT
12 MONTHS ENDED JUNE 30, 1999
Unaudited
(Thousands of dollars)
<TABLE>
<CAPTION>
PRO
FORMA
GIVING
PRO FORMA EFFECT TO
PER BOOK ADJUSTMENTS ADJUSTMENTS
<S> <C> <C> <C>
Operating Revenue $ 4,015,975 $ 827,520 $ 4,843,495
---------- ---------- ----------
Operating Expenses:
Operation--
Fuel, purchased and net interchange power 1,394,647 10,000 1,404,647
Other 1,018,396 0 1,018,396
Maintenance 395,676 395,676
Depreciation 326,145 504,877 831,022
Amortization of regulatory assets, net 269,164 341,664 610,828
Federal and state income taxes 103,491 33,341 136,832
Taxes other than income taxes 254,383 254,383
---------- ---------- ----------
Total Operating Expenses 3,761,902 889,882 4,651,784
---------- ---------- ----------
Operating Income / (Loss) 254,073 (62,362) 191,711
---------- ---------- ----------
Other income / (loss)
Deferred nuclear plants return--other funds 5,647 5,647
Equity in earnings of regional nuclear
generating and transmission companies 8,831 8,831
Millstone 1 (141,570) (141,570)
Other, net (29,958) 27,134 (2,824)
Minority interest in income of subsidiary (9,300) (9,300)
Income taxes 86,504 71,725 158,229
---------- ---------- ----------
Other income, net (79,846) 98,859 19,013
---------- ---------- ----------
Income before interest charges 174,227 36,497 210,724
---------- ---------- ----------
Interest Charges
Interest on long-term debt 267,175 76,187 343,362
Other interest 13,274 13,274
AFDUC credit (3,550) (3,550)
Deferred nuclear plants return--borrowed funds (10,455) (10,455)
---------- ---------- ----------
Interest charges, net 266,444 76,187 342,631
---------- ---------- ----------
Net Loss (92,217) (39,690) (131,907)
Extraordinary Loss, net of tax effect 0 (225,000) (225,000)
---------- ---------- ----------
Net Loss after extraordinary item $ (92,217)$ (264,690)$ (356,907)
========== =========== ===========
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
1.2b PRO FORMA STATEMENT OF RETAINED EARNINGS
AS OF JUNE 30, 1999
Unaudited
(Thousands of Dollars)
<TABLE>
<CAPTION>
PRO
FORMA
GIVING
PRO FORMA EFFECT TO
<S> PER BOOK ADJUSTMENTS ADJUSTMENTS
Balance at beginning of period <C> <C> <C>
$ 695,846 $ 0 $ 695,846
Net (Loss) / Income
(92,217) (264,690) (356,907)
Common Dividends
0 0 0
Cash dividends on preferred stock
(24,189) 0 (24,189)
Adjustment
9 0 9
Balance at end of period ---------- ---------- ----------
$ 579,449 $ (264,690) $ 314,759
========== ========== ==========
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
1.2c PRO FORMA CAPITAL STRUCTURE
AS OF JUNE 30, 1999
Unaudited
(Thousands of Dollars)
<TABLE>
<CAPTION>
PRO
FORMA
GIVING
PRO FORMA EFFECT
PER BOOK ADJUSTMENTS TO ADJUSTS
----------- ----------- -------------
<S> <C> <C> <C>
Long Term Debt*
Preferred stock not subject to
mandatory redemption 3,151,013 3,151,013
Preferred stock subject to
mandatory redemption 136,200 136,200
Common Stock Equity 141,039 141,039
2,073,662 2,073,662
----------- ------------ ------------
5,501,914 0 5,501,914
=========== ============ ============
</TABLE>
*Does not include current portion
NORTHEAST UTILITIES AND SUBSIDIARIES
1.2d PRO FORMA FINANCIAL STATEMEMT ADJUSTMENTS
AS OF JUNE 30, 1999
Unaudited
(Thousands of dollars)
<TABLE>
<CAPTION>
<S> <C> <C>
Accumulated provision for depreciation 184,384
Cash and cash equivalents 941,146
Investments in securitizable assets 92,921
Prepayments and other 3,415
Regulatory assets -- other 1,557,385
Unamortized debt expense 22,189
Common stock 25,237
Capital surplus, paid in 887,811
Preferred stock not subject to mandatory redemption 20,000
Preferred stock subject to mandatory redemption 141,039
Long-term debt 1,567,947
Minority interest in consolidated subsidiaries 100,000
Obligations under capital leases 693,541
Notes payable to banks 238,625
Long-term debt and preferred stock -- current portion 26,500
Accounts payable 8,250
Accrued taxes 23,302
Operating expenses -- operation -- fuel, purchased power 10,000
Depreciation 504,877
Amortization of regulatory assets, net 341,664
Federal and state income taxes 33,341
Interest on long-term debt 76,187
Extraordinary loss, net of tax effect 225,000
Receivables from affiliated companies 10,343
Deferred obligation to affiliated company 17,856
Taxes receivable 293,463
Utility plan -- electric (1,899,533)
Unamortized PSNH acquisition costs (92,618)
Nuclear fuel, net (2,078)
Fuel, materials, and supplies, at average cost (75,554)
Regulatory assets - income taxes, net (80,425)
Deferred costs--nuclear plants (118,651)
Recoverable energy costs, net (31,972)
Other deferred charges (4,089)
Rate reduction bond obligation (2,516,800)
Accrued interest (92,727)
Accumulated deferred income taxes (204,521)
Deferred credits -- other (1,059,830)
Operating revenues (827,520)
Other, net (27,134)
Income taxes (71,725)
Accounts payable to affiliate companies (10,343)
Deferred receivable from affiliated company (17,856)
Investment in subsidiary companies (913,047)
Operating expenses -- operation -- other 0
To record summary entry for NU consolidated.
Accounts payable to affiliate companies 10,343
Deferred receivable from affiliated company 17,856
Receivables from affiliated companies (10,343)
Deferred obligation to affiliated company (17,856)
To record elimination of intercompany receivables and
payables.
Investment in subsidiary companies 913,047
Common stock (25,237)
Capital surplus (887,810)
</TABLE>
To record elimination of investment in subsidiary
companies.
NORTHEAST UTILITIES PARENT
2.1 PRO FORMA BALANCE SHEET
AS OF JUNE 30, 1999
Unaudited
(Thousands of Dollars)
<TABLE>
<CAPTION>
PRO
FORMA
PRO GIVING
FORMA EFFECT
PER BOOK ADJ TO ADJUSTS
<S> <C> <C> <C>
ASSETS
Other Property and Investments:
Investments in subsidiary companies,
at equity $ 2,199,224 $ (913,047)[1]$ 1,286,177
Investments in transmission companies,
at equity 17,900 17,900
Other, at cost 54 54
----------- ----------- -----------
2,217,178 (913,047) 1,304,131
Current Assets:
Cash 0 913,047 [1] 913,047
Notes receivable from
affiliated companies 22,300 22,300
Notes and accounts receivable 571 571
Accounts receivable from
affiliated companies 4,172 4,172
Prepayments 27 27
----------- ----------- -----------
27,070 913,047 940,117
Deferred Charges:
Accumulated deferred incomes taxes 6,160 6,160
Unamoritized debt expense 46 46
Other 2,562 2,562
----------- ----------- -----------
8,768 0 8,768
----------- ----------- -----------
Total Assets $ 2,253,016 $ 0 $ 2,253,016
=========== =========== ===========
CAPITALIZATION AND LIABILITIES
Capitalization
Common Stock $ 686,188 $ 42,500 [2]$ 728,688
Capital surplus, paid in 940,448 (42,500)[2] 897,948
Deferred benefit plan--employee stock (133,947) (133,947)
Retained earnings 579,449 579,449
Accumulated other comprehensive income 1,524 1,524
---------- ---------- -----------
Total common stockholder's equity 2,073,662 0 2,073,662
Long-term debt 152,000 152,000
---------- ---------- -----------
Total Capitalization 2,225,662 0 2,225,662
---------- ---------- -----------
Current Liabilities:
Accounts payable 742 742
Accounts payable to affiliated companies 3,233 3,233
Long-term debt--current portion 19,000 19,000
Accrued taxes 2,047 2,047
Accrued interest 1,969 1,969
Other 2 2
---------- ---------- -----------
26,993 0 26,993
---------- ---------- -----------
Other deferred credits 361 361
---------- ---------- -----------
Total Capitalization and Liabilities $ 2,253,016 $ 0 $ 2,253,016
========== ========== ===========
</TABLE>
[1] See adjustments a, b, c, and d.
[2] See adjustment e.
NORTHEAST UTILITIES PARENT
2.2a PRO FORMA INCOME STATEMENT
FOR THE 12 MONTHS ENDED JUNE 30, 1999
Unaudited
(Thousands of Dollars)
<TABLE>
<CAPTION> PRO FORMA
PRO FORMA GIVING EFFECT
PER BOOK ADJUSTMENTS TO ADJUSTS
<S> <C> <C> <C>
Operating Revenues $ 0 $ 0 $ 0
---------- ---------- ----------
Operating Expenses:
Operation expense 6,564 6,564
Federal and state income taxes (8,395) (8,395)
Taxes other than income taxes 8 8
---------- ---------- ----------
Total operating expenses (1,823) 0 (1,823)
---------- ---------- ----------
Operating Income 1,823 0 1,823
---------- ---------- ----------
Other Income / (Loss):
Equity in earnings of subsidiaries (97,350) (97,350)
Equity in earnings of transmission
companies 2,725 2,725
Other, net (2,997) (2,997)
Income taxes (4,776) (4,776)
---------- ---------- ----------
Other loss, net (102,398) 0 (102,398)
---------- ---------- ----------
Loss before interest charges (100,575) 0 (100,575)
---------- ---------- ----------
Interest Charges:
Interest on long-term debt 15,449 15,449
Other interest 382 382
---------- ---------- ----------
Interest Charges, net 15,831 0 15,831
---------- ---------- ----------
Net Loss $ (116,406)$ 0 $ (116,406)
========== ========== ==========
</TABLE>
NORTHEAST UTILITIES PARENT
2.2b PRO FORMA STATEMENT OF RETAINED EARNINGS
AS OF JUNE 30, 1999
Unaudited
(Thousand of Dollars)
<TABLE>
<CAPTION>
PRO FORMA
PRO FORMA GIVING EFFECT
PER BOOK ADJ TO ADJUSTS
<S> <C> <C> <C>
Balance at beginning of period $ 695,846 $ 0 $ 695,846
Net loss (116,406) 0 (116,406)
Miscellaneous elimination adjustment 9 0 9
---------- ---------- ----------
Balance at end of period $ 579,449 $ 0 $ 579,449
========== =========== ===========
</TABLE>
NORTHEAST UTILITIES PARENT
2.2c PRO FORMA CAPITAL STRUCTURE
AS OF JUNE 30, 1999
Unaudited
(Thousands of Dollars)
<TABLE>
<CAPTION>
PRO FORMA
PRO FORMA GIVING EFFECT
PER BOOK ADJUSTMENTS TO ADJUSTS
<S> <C> <C> <C>
Long-term debt* $ 152,000 $ $ 152,000
Common stock equity 2,073,662 0 2,073,662
----------- ----------- -----------
Total Capitalization $ 2,225,662 $ 0 $ 2,225,662
=========== =========== ===========
</TABLE>
*Does not include current portion
NORTHEAST UTILITIES PARENT
2.2d PRO FORMA ADJUSTMENTS TO FINANCIAL STATEMENTS
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
Debit Credit
<S> <C> <C>
a) Cash 310,000
Investment in Subsidiary Cos 310,000
To record the CL&P stock repurchase by CL&P
b) Cash 145,000
Investment in Subsidiary Cos 145,000
To record the stock repurchase by WMECO.
c) Cash 297,208
Investment in Subsidiary Cos 297,208
To record the stock repurchase by PSNH.
d) Cash 160,839
Investment in Subsidiary Cos 160,839
To record the stock repurchase by NAEC.
e) Capital Surplus 114,750
Common Stock 42,500
Capital Surplus 72,250
To record the issuance of 8,500,000 common shares at $13.5 per share
to settle the forward share repurchase.
</TABLE>
THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES
3.1a PRO FORMA BALANCE SHEET--ASSETS
AS OF JUNE 30, 1999
Unaudited
(Thousands of Dollars)
<TABLE>
<CAPTION>
PRO
FORMA
GIVING
PRO EFFECT
FORMA TO
PER BOOK ADJ ADJ
<S> <C> <C> <C>
Utility Plant, at original cost:
Electric $ 6,222,698 $ (692,665)[1] $ 5,530,033
Less: Accumulated provision
for depreciation 2,854,213 (529,831)[1] 2,324,382
---------- ---------- ----------
3,368,485 (162,834) 3,205,651
Construction work in progress 96,118 96,118
Nuclear fuel, net 103,279 103,279
---------- ---------- ----------
Total net utility plant 3,567,882 (162,834) 3,405,048
---------- ---------- ----------
Other Property and Investments:
Nuclear decommissioning trusts, at market 483,751 483,751
Investments in regional nuclear
generating companies, at equity 57,999 57,999
Other, at cost 52,951 52,951
---------- ---------- ----------
594,701 0 594,701
---------- ---------- ----------
Current Assets:
Cash 398 12,000 [2] 12,398
Investment in securitizable assets 68,660 92,921 [3] 161,581
Notes receivable from affiliated companies 84,300 84,300
Receivables, net 20,075 20,075
Accounts receivable from
affiliated companies 41,982 41,982
Taxes receivable 0 290,593 [3] 290,593
Fuel, materials, and supplies,
at average cost 71,974 (40,576)[1] 31,398
Prepayments and other 136,246 7,408 [4] 143,654
---------- ---------- ----------
423,635 362,346 785,981
---------- ---------- ----------
Deferred Charges:
Regulatory assets:
Income taxes, net 476,398 476,398
Millstone 1 403,235 403,235
Unrecovered contractual obligations 243,827 243,827
Recoverable energy costs, net 127,196 127,196
Other 43,108 1,006,202 [5] 1,049,310
Unamortized debt expense 18,534 10,953 [6] 29,487
Other 14,511 14,511
---------- ---------- ----------
1,326,809 1,017,155 2,343,964
---------- ---------- ----------
Total Assets $ 5,913,027 $ 1,216,667 $ 7,129,694
========== ========== ==========
</TABLE>
[1] See adjustments b and d.
[2] See adjustments a, b, d, e, g, i, k, l and o.
[3] See adjustment r.
[4] See adjustment i.
[5] See adjustments a, b, d, f and j.
[6] See adjustment m.
THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES
3.1b PRO FORMA BALANCE SHEET--CAPITALIZATION AND LIABILITIES
AS OF JUNE 30, 1999
Unaudited
(Thousands of Dollars)
<TABLE>
<CAPTION>
PRO
FORMA
GIVING
PRO EFFECT
FORMA TO
PER BOOK ADJ. ADJ
<S> <C> <C> <C>
Capitalization:
Common stock $ 122,229 $ (48,137)[7] $ 74,092
Capital surplus, paid in 664,956 (261,863)[7] 403,093
Retained earnings 152,968 (11,526) 141,442
Accumulated other comprehensive income 416 416
---------- ---------- ----------
Total common stockholder's equity 940,569 (321,526) 619,043
Preferred stock not subject to
mandatory redemption 116,200 116,200
Preferred stock subject to
mandatory redemption 99,539 (99,539)[8] 0
Long-term debt 1,798,430 (795,000)[8] 1,003,430
---------- ---------- ----------
Total capitalization 2,954,738 (1,216,065) 1,738,673
---------- ---------- ----------
Minority Interest in Consolidated Subsidiary 100,000 (100,000)[9] 0
---------- ---------- ----------
Obligations Under Capital Leases 63,156 63,156
---------- ---------- ----------
Rate Reduction Bond Obligation 1,489,082 [10] 1,489,082
---------- ---------- ----------
Current Liabilities:
Notes payable to banks 180,000 (180,000)[11] 0
Long-term debt and preferred
stock--current portion 19,755 19,755
Obligations under capital
leases--current portion 93,871 93,871
Accounts payable 137,803 137,803
Accounts payable to affiliated companies 22,485 22,485
Accrued taxes 22,655 (22,655)[12] 0
Accrued interest 27,583 58,269 [13] 85,852
Other 22,988 22,988
---------- ---------- ----------
527,140 (144,386) 382,754
---------- ---------- ----------
Deferred Credits and Other Long-term Liabilities:
Accumulated deferred income taxes 1,154,933 293,639 [14] 1,448,572
Accumulated deferred investment tax credits 111,052 111,052
Decommissioning obligation--Millstone 1 560,500 560,500
Deferred contractual obligations 255,749 255,749
Other 185,759 894,397 [15] 1,080,156
---------- ---------- ----------
2,267,993 1,188,036 3,456,029
---------- ---------- ----------
Total Capitalization and Liabilities $ 5,913,027 $ 1,216,667 $ 7,129,694
========== ========== ==========
</TABLE>
[7] See adjustment o.
[8] See adjustment k.
[9] See adjustment p.
[10] See adjustment g.
[11] See adjustments k, p, and r.
[12] See adjustments b, e, h, i, l, n, q and r.
[13] See adjustments h, n and q.
[14] See adjustments c, f, j and m.
[15] See adjustments b, c and d.
THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES
3.2a PRO FORMA INCOME STATEMENT
FOR THE 12 MONTHS ENDED JUNE 30, 1999
Unaudited
(Thousands of Dollars)
<TABLE>
<CAPTION>
PRO
FORMA
GIVING
PRO EFFECT
FORMA TO
PER BOOK ADJ. ADJ
<S> <C> <C> <C>
Operating Revenues $ 2,388,745 $ 0 [16]$ 2,388,745
---------- ---------- ----------
Operating Expenses:
Operation --
Fuel, purchased and net interchange power 814,975 0 [17] 814,975
Other 683,568 0 [18] 683,568
Maintenance 264,633 264,633
Depreciation 209,246 209,246
Amortization of regulatory assets, net 156,841 156,841
Federal and state income taxes 33,974 25,596 [19] 59,570
Taxes other than income taxes 169,798 169,798
---------- ---------- ----------
Total operating expenses 2,333,035 25,596 2,358,631
---------- ---------- ----------
Operating Income (Loss) 55,710 (25,596) 30,114
---------- ---------- ----------
Other Income (Loss):
Equity in earnings of regional
nuclear generating companies 4,049 4,049
Other, net 2,659 27,134 [1] 29,793
Millstone 1 (141,570) (141,570)
Minority interest in income of subsidiary (9,300) (9,300)
Income taxes 70,134 45,205 [20] 115,339
---------- ---------- ----------
Other income, net (74,028) 72,339 (1,689)
---------- ---------- ----------
Income before interest charges (18,318) 46,743 28,425
---------- ---------- ----------
Interest Charges:
Interest on long-term debt 131,742 58,269 [21] 190,011
Other interest 10,571 10,571
AFDUC credit (1,642) (1,642)
Deferred Millstone 3 Return (84) (84)
---------- ---------- ----------
Interest charges, net 140,587 58,269 198,856
---------- ---------- ----------
Net Loss $ (158,905)$ (11,526) $ (170,431)
========== ========== ==========
</TABLE>
[16] See adjustments b and c.
[17] See adjustments e and f.
[18] See adjustments i, j, l and m.
[19] See adjustments b, c, e, f, i, j, l, m, and n.
[20] See adjustments h and q.
[21] See adjustments h, n, and q.
THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES
3.2b PRO FORMA STATEMENT OF RETAINED EARNINGS
AS OF JUNE 30, 1999
Unaudited
(Thousands of Dollars)
<TABLE>
<CAPTION>
PRO
FORMA
GIVING
PRO EFFECT
FORMA TO
PER BOOK ADJ ADJ.
<S> <C> <C> <C>
Balance at beginning of period $ 355,313 $ 0 $ 355,313
Net (loss) / income (158,905) (11,526) (170,431)
Cash dividends on preferred stock (13,270) 0 (13,270)
ESOP contribution (30,170) 0 (30,170)
---------- ---------- ----------
Balance at end of period $ 152,968 $ (11,526) $ 141,442
========== ========== ==========
</TABLE>
THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES
3.2c PRO FORMA CAPITAL STRUCTURE
AS OF JUNE 30, 1999
Unaudited
(Thousands of Dollars)
<TABLE>
<CAPTION>
PRO
FORMA
GIVING
PRO EFFECT
FORMA TO
PER BOOK ADJ ADJ
<S> <C> <C> <C>
Long-term debt* $ 1,798,430 $ (795,000)[8] $ 1,003,430
Preferred stock not subject to
mandatory redemption* 116,200 0 116,200
Preferred stock subject to
mandatory redemption* 99,539 (99,539)[8] 0
Common stock equity 940,569 (321,526) 619,043
---------- ---------- ----------
Total Capitalization $ 2,954,738 $ (1,216,065) $ 1,738,673
========== ========== ==========
</TABLE>
*Does not include current portion
CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARY
3.2d PRO FORMA ADJUSTMENTS TO FINANCIAL STATEMENTS
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
Debit Credit
<S> <C> <C>
a)Regulatory assets -- other 53,742
Cash 53,742
To establish the regulatory assets
associated with the Devon Lease.
b)Cash 505,645
Accumulated provision
for depreciation 248,550
Federal and state income taxes 122,046
Utility plant -- electric 325,553
Fuel, materials and supplies 39,239
Regulatory assets -- other 58,289
Deferred credits -- other 26,000
Operating revenues 295,869
Accrued taxes 122,046
Other, net 9,245
To record the sale of fossil
generation assets to NRG, and the
related transaction expenses
and tax effect.
c)Operating revenues 295,869
Accumulated deferred income taxes 118,348
Deferred credits -- other 295,869
Federal and state income taxes 118,348
To record deferral of gain
and deferral of related taxes.
d)Cash 685,851
Accumulated provision
for depreciation 281,281
Utility plant -- electric 367,112
Fuel, materials and supplies 1,337
Regulatory assets -- other 8,266
Deferred credits -- other 572,528
Other, net 17,889
To record sale of fossil/hydro
generation assets to Northeast
Generation Company, an affiliate,
and the related transaction
expenses and tax effects.
e)Fuel, purchased and
net interchange power 1,000,000
Accrued taxes 400,000
Cash 1,000,000
Federal and state income taxes 400,000
To record the buyout of IPP
contracts and related tax effect.
f)Regulatory assets -- other 1,000,000
Federal and state income taxes 400,000
Fuel, purchased and
net interchange power 1,000,000
Accumulated deferred income taxes 400,000
To record the deferral of IPP
contracts costs and the associated
tax effect.
g)Cash 1,489,082
Rate reduction bond obligation 1,489,082
To record the issuance of
rate reduction bonds.
h)Interest on long-term debt 100,513
Accrued taxes 40,205
Accrued interest 100,513
Income taxes 40,205
To record interest expense on rate
reduction bonds and related taxes.
i)Operating expenses --
operation -- other 19,015
Prepayments and other 7,408
Accrued taxes 7,606
Cash 26,423
Federal and state income taxes 7,606
To record issuance expenses
associated with securitization and
related tax effect.
j)Regulatory assets -- other 19,015
Federal and state income taxes 7,606
Operating expenses --
operation -- other 19,015
Accumulated deferred income taxes 7,606
To record the deferral of RRB issuance
costs and the associated tax effect.
k)Notes payable to banks 372,921
Long-term debt 795,000
Preferred stock subject to mandatory
redemption 99,539
Cash 1,267,460
To record the use of sale proceeds
and securitization proceeds to retire
short-term and long-term debt,
retire preferred stock and pay taxes
associated with asset sales.
l)Operating expenses --
operation -- other 10,953
Accrued taxes 4,381
Cash 10,953
Federal and state income taxes 4,381
To record the associated costs and
premiums of retiring debt.
m)Unamortized debt expense 0
Federal and state income taxes 4,381
Operating expenses --
operation -- other 0
Accumulated deferred income taxes 4,381
To record deferral of debt
retirement costs and related
tax effects.
n)Accrued interest 54,744
Federal and state income taxes 21,898
Interest on long-term debt 54,744
Accrued taxes 21,898
To record decrease in interest
costs associated with debt repurchase
and the related increase in taxes.
o)Common stock 48,137
Capital surplus 261,863
Cash 310,000
To record repurchase 4,813,664
shares of Common Stock at an average
share price as of June 30, 1999
of $64.40, par $10.
p)Minority interest in
consolidated subsidiaries 100,000
Notes payable to banks 100,000
To record the retirement of Monthly
Income Preferred Stock (MIPS).
q)Interest on long-term debt 12,500
Accrued taxes 5,000
Accrued interest 12,500
Income taxes 5,000
To record additional interest
expense, fees and related taxes for
additional short-term debt.
r)Investment in securitizable assets 92,921
Taxes receivable 290,593
Notes payable to banks 92,921
Accrued taxes 290,593
To reclassify debit balances
in liability accounts.
</TABLE>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
4.1a PRO FORMA BALANCE SHEET--ASSETS
AS OF JUNE 30, 1999
UNAUDITED
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
PRO
FORMA
GIVING
EFFECT
PRO FORMA TO
PER BOOK ADJUSTMENTS ADJUSTMENTS
<S> <C> <C> <C>
Utility Plant, at cost:
Electric $ 1,921,658 $ (1,062,290)[1] $ 859,368
Less: Accumulated provision
for depreciation 653,079 (117,609)[2] 535,470
------------ ------------ ------------
1,268,579 (944,681) 323,898
Unamortized acquisition costs 338,646 (92,618)[3] 246,028
Construction work in progress 33,446 33,446
Nuclear fuel, net 2,078 (2,078)[4] 0
------------ ------------ ------------
Total net utility plant 1,642,749 (1,039,377) 603,372
------------ ------------ ------------
Other Property and Investments:
Nuclear decommissioning trusts,
at market 6,280 6,280
Investments in regional nuclear
generating companies and
subsidiary company, at equity 19,761 19,761
Other, at cost 4,443 4,443
------------ ------------ ------------
30,484 0 30,484
------------ ------------ ------------
Current Assets:
Cash and cash equivalents 82,840 (20,094)[5] 62,746
Receivables, net 83,742 83,742
Accounts receivable from
affiliated company 22,565 22,565
Accrued utility revenues 47,212 47,212
Fuel, materials, and supplies,
at average cost 35,786 (33,000)[6] 2,786
Recoverable energy costs --
current portion 78,949 78,949
Prepayments and other 38,456 38,456
------------ ------------ ------------
389,550 (53,094) 336,456
------------ ------------ ------------
Deferred Charges:
Regulatory assets:
Recoverable energy costs 138,440 (31,972)[3] 106,468
Income taxes, net 147,164 (55,570)[3] 91,594
Deferred costs, nuclear plant 195,340 195,340
Unrecovered contractual obligations 61,142 61,142
Other 3,154 527,316 [7] 530,470
Securitible assets 0 0
Deferred receivable from
affiliated company 17,856 (17,856)[8] 0
Unamortized debt expense 11,835 7,791 [9] 19,626
Other 5,248 5,248
------------ ------------ ------------
580,179 429,709 1,009,888
------------ ------------ ------------
Total Assets $ 2,642,962 $ (662,762) $ 1,980,200
============ ============ ============
</TABLE>
[1] See adjustments a, k, u and z.
[2] See adjustments a and z.
[3] See adjustment i.
[4] See adjustment z.
[5] See adjustments a, d, e, g, j, k, l, n, p, s and v.
[6] See adjustment a.
[7] See adjustments b, h, i, k, o, q, t, u, x, y and aa.
[8] See adjustment j.
[9] See adjustment f.
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
4.1b PRO FORMA BALANCE SHEET--
CAPITALIZATION AND LIABILITIES
AS OF JUNE 30, 1999
UNAUDITED
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
PRO
FORMA
GIVING
EFFECT
PRO FORMA TO
PER BOOK ADJUSTMENTS ADJUSTMENTS
<S> <C> <C> <C>
Capitalization:
Common Stock $ 1 $ (1)[10]$ 0
Capital surplus, paid in 424,492 (297,208)[10] 127,284
Retained earnings 284,463 (246,034) 38,429
Accumulated other
comprehensive income 1,075 1,075
------------ ------------ ------------
Total common stockholder's equity 710,031 (543,243) 166,788
Preferred stock subject to
mandatory redemption 25,000 (25,000)[11] 0
Long-term debt 540,985 (255,947)[12] 285,038
------------ ------------ ------------
Total capitalization 1,276,016 (824,190) 451,826
------------ ------------ ------------
Obligations Under Seabrook Power
Contracts and Other Capital Leases 678,836 (693,541)[13] (14,705)
------------ ------------ ------------
Rate Reduction Bond Obligation 725,000 [14] 725,000
------------ ------------ ------------
Current Liabilities:
Long-term debt and preferred stock--
current portion 25,000 (25,000)[11] 0
Obligations under Seabrook Power
Contracts and other capital
leases--current portion 111,068 111,068
Accounts payable 35,079 35,079
Accounts payable to
affiliated companies 30,737 10,343 [15] 41,080
Accrued taxes 57,685 287 [16] 57,972
Accrued interest 5,750 25,056 [17] 30,806
Accrued pension benefits 45,671 45,671
Other 7,208 7,208
------------ ------------ ------------
318,198 10,686 328,884
------------ ------------ ------------
Deferred Credits and Other
Long-Term Liabilities:
Accumulated deferred income taxes 237,053 119,283 [18] 356,336
Accumulated deferred investment
tax credits 3,204 3,204
Deferred contractual obligations 61,142 61,142
Deferred revenue from
affiliated company 17,856 17,856
Other 50,657 50,657
------------ ------------ ------------
369,912 119,283 489,195
------------ ------------ ------------
Total Capitalization and Liabilities $ 2,642,962 $ (662,762) $ 1,980,200
============ ============ ============
</TABLE>
[10] See adjustment v.
[11] See adjustment p.
[12] See adjustments d and p.
[13] See adjustment k.
[14] See adjustment l.
[15] See adjustment w.
[16] See adjustments c, e, g, m, n, p, r, s, w, y and z.
[17] See adjustments m and r.
[18] See adjustments a, b, c, f, h, i, k, o, q, t, x, and aa.
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
4.2a PRO FORMA INCOME STATEMENT
FOR THE 12 MONTHS ENDED JUNE 30, 1999
UNAUDITED
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
PRO
FORMA
GIVING
EFFECT
PRO FORMA TO
PER BOOK ADJUSTMENTS ADJUSTMENTS
<S> <C> <C> <C>
Operating Revenues $ 1,148,342 $ 153,000 [6] $ 1,301,342
------------ ------------ ------------
Operating Expenses:
Operation --
Fuel, purchased and net
interchange power 346,416 10,000 [19] 356,416
Other 457,212 0 [20] 457,212
Maintenance 50,375 50,375
Depreciation 46,571 46,571
Amortization of regulatory assets, net 18,453 153,000 [21] 171,453
Federal and state income taxes 50,155 (4,000)[22] 46,155
Taxes other than income taxes 44,267 44,267
------------ ------------ ------------
Total operating expenses 1,013,449 159,000 1,172,449
------------ ------------ ------------
Operating Income / (Loss) 134,893 (6,000) 128,893
------------ ------------ ------------
Other income / (loss):
Equity in earnings of regional nuclear
generating companies and
subsidiary company 1,790 1,790
Other, net 9,046 9,046
Income taxes (5,279) 10,022 [17] 4,743
------------ ------------ ------------
Other income, net 5,557 10,022 15,579
------------ ------------ ------------
Income / (Loss) before interest
charges 140,450 4,022 144,472
------------ ------------ ------------
Interest Charges:
Interest on long-term debt 40,941 25,056 [17] 65,997
Other interest 239 239
------------ ------------ ------------
Interest charges, net 41,180 25,056 66,236
------------ ------------ ------------
Net Income/(Loss) 99,270 (21,034) 78,236
Extraordinary Loss, net of tax effect 0 (225,000)[3] (225,000)
------------ ------------ ------------
Net Income/(Loss) after
extraordiary item $ 99,270 $ (246,034) $ (146,764)
=========== =========== ===========
</TABLE>
[19] See adjustments g, h, s and t.
[20] See adjustments e, f, n, o, p, q, w, x, y, z and aa.
[21] See adjustment b.
[22] See adjustments a, b, e, f, g, h, n, o, p, q, s, t, w, x, y, z and aa.
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
4.2b PRO FORMA STATEMENT OF RETAINED EARNINGS
AS OF JUNE 30, 1999
UNAUDITED
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
PRO
FORMA
GIVING
EFFECT
PRO FORMA TO
PER BOOK ADJUSTMENTS ADJUSTMENTS
<S> <C> <C> <C>
Balance at beginning of period $ 203,593 $ 0 $ 203,593
Net income / (loss) 99,270 (246,034) (146,764)
Cash dividends on preferred stock (7,950) 0 (7,950)
Cash dividends on common stock 0 0 0
ESOP Contribution (10,450) 0 (10,450)
------------ ------------ ------------
Balance at end of period $ 284,463 $ (246,034) $ 38,429
========== =========== ===========
</TABLE>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
4.2c PRO FORMA CAPITAL STRUCTURE
AS OF JUNE 30, 1999
UNAUDITED
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
PRO
FORMA
GIVING
EFFECT
PRO FORMA TO
PER BOOK ADJUSTMENTS ADJUSTMENTS
<S> <C> <C> <C>
Long-term debt* $ 540,985 $ (255,947)[12]$ 285,038
Preferred Stock Subject
to mandatory redemption* 25,000 (25,000)[11] 0
Common stock equity 710,031 (543,243) 166,788
------------ ------------ ------------
$ 1,276,016 $ (824,190) $ 451,826
=========== ============ ============
</TABLE>
*Does not include current portion
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
4.2d PRO FORMA ADJUSTMENTS TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
(THOUSANDS OF DOLLARS)
Debit Credit
<S> <C> <C>
a)Cash and cash equivalents 360,000
Accumulated provision for depreciation 74,571
Federal and state income taxes 61,200
Operating revenues 153,000
Utility plant -- electric 248,571
Fuel, materials, and supplies 33,000
Accumulated deferred income taxes 61,200
To record sale and gain on fossil-hydro assets and related tax effect.
b)Amortization of regulatory assets, net 153,000
Accumulated deferred income taxes 61,200
Regulatory assets -- other 153,000
Federal and state income taxes 61,200
To record amortization expense related to entry A above and related tax effect.
c)Accumulated deferred income taxes 90,800
Accrued taxes 90,800
To record tax effect on difference between $227 million gain on sale and the
associated $153 million write-down.
d)Long-term debt 146,747
Cash and cash equivalents 146,747
To record use of sale proceeds to retire long-term debt.
e)Operating expenses -- operation -- other 7,791
Accrued taxes 3,116
Cash and cash equivalents 7,791
Federal and state income taxes 3,116
To record debt retirement expenses and related tax effect per entry D above.
f)Unamortized debt expense 7,791
Federal and state income taxes 3,116
Operating expenses -- operation -- other 7,791
Accumulated deferred income taxes 3,116
To record the deferral of the debt retirement expenses and related tax effect
per entry E above.
g)Operating expenses -- operation -- fuel 62,000
Accrued taxes 24,800
Cash and cash equivalents 62,000
Federal and state income taxes 24,800
To record buydown of Hydro-Quebec contract and related tax effect.
h)Regulatory assets -- other 62,000
Federal and state income taxes 24,800
Operating expenses -- operation -- fuel 62,000
Accumulated deferred income taxes 24,800
To record the deferral of the buydown of Hydro-Quebec contract and related tax
effect per entry G above.
i)Extraordinary loss, net of tax effect 225,000
Accumulated deferred income taxes 143,824
Unamortized acquisition costs 92,618
Regulatory assets, income taxes, net 55,570
Recoverable energy costs 31,972
Regulatory assets -- other 188,664
To record write-down of regulatory assets in accordance with settlement
agreement.
j)Cash and cash equivalents 17,856
Deferred receivable from affiliated company 17,856
To record receipt of receivable from NAEC.
k)Regulatory asset -- other 693,541
Obligations under Seabrook Power Contracts
and other capital leases 693,541
Utility plant -- electric 693,541
Cash and cash equivalents 416,125
Accumulated deferred income taxes 277,416
To record buydown of Seabrook power contract and related tax effect.
l)Cash and cash equivalents 725,000
Rate reduction bond obligation 725,000
To record the issuance of rate reduction bonds.
m)Interest on long-term debt 48,938
Accrued taxes 19,575
Income taxes 19,575
Accrued interest 48,938
To record increase in interest cost related to issuance of new debt and
related tax effect.
n)Operating expenses -- operation -- other 17,000
Accrued taxes 6,800
Cash and cash equivalents 17,000
Federal and state income taxes 6,800
To record issuance expenses related to the rate reduction bonds and related tax
effect.
o)Regulatory assets -- other 17,000
Federal and state income taxes 6,800
Operating expenses -- operation -- other 17,000
Accumulated deferred income taxes 6,800
To record deferral of issuance expenses and related tax effect per
entry N above.
p)Long-term debt 109,200
Preferred stock subject to mandatory redemption 25,000
Long-term debt and preferred stock
-- current portion 25,000
Operating expenses -- operation -- other 878
Accrued taxes 351
Cash and cash equivalents 160,078
Federal and state income taxes 351
To record use of securitization proceeds to retire long-term debt, preferred
stock and the associated debt retirement cost and taxes.
q)Regulatory assets -- other 878
Federal and state income taxes 351
Operating expenses -- operation -- other 878
Accumulated deferred income taxes 351
To record deferral of premium on debt retired and related tax effect per entry P
above.
r)Income taxes 9,553
Accrued interest 23,882
Interest on long-term debt 23,882
Accrued taxes 9,553
To record decrease in interest cost as a result of the retiring long-term debt
and related tax effect.
s)Operating expenses -- operation -- fuel 16,000
Accrued taxes 6,400
Cash and cash equivalents 16,000
Federal and state income taxes 6,400
To record buydown of Vermont Yankee Power Contract and related tax effect.
t)Regulatory assets -- other 16,000
Federal and state income taxes 6,400
Operating expenses -- operation -- fuel 16,000
Accumulated deferred income taxes 6,400
To record deferral of expense related to Vermont Yankee Power Contract and
related tax effect per entry S above.
u)Regulatory assets -- other 2,000
Utility plant -- electric 2,000
To record reclassification of investment in utility plant to regulatory
assets (Vermont Yankee).
v)Common stock 1
Capital surplus, paid in 297,208
Cash and cash equivalents 297,209
To record repurchase of 692 shares at an average stock price of $429,493 per
share,as of June 30, 1999, $1 par value.
w)Operating expenses -- operation -- other 10,343
Accrued taxes 4,137
Accounts payable to affiliate companies 10,343
Federal and state income taxes 4,137
To record debt retirement cost and related tax effect.
x)Regulatory assets -- other 10,343
Federal and state income taxes 4,137
Operating expenses -- operation -- other 10,343
Accumulated deferred income taxes 4,137
To record deferral of debt retirement cost per entry W above.
y)Fuel, purchased and net interchange power 10,000
Accrued taxes 4,000
Regulatory liability (netted with regulatory assets -- other) 10,000
Federal and state income taxes 4,000
To transfer wholesale power contract to an affiliate and related tax effect.
z)Accumulated provision for depreciation 43,038
Accrued taxes 30,887
Operating expenses -- operation -- other 77,218
Utility plant -- electric 118,178
Nuclear fuel, net 2,078
Federal and state income taxes 30,887
To transfer nuclear fuel to Millstone 3 at zero market value and
record associated loss.
aa) Regulatory assets -- other 77,218
Federal and state income taxes 30,887
Operating expenses -- operation -- other 77,218
Accumulated deferred income taxes 30,887
To record deferral of loss per entry Z above.
</TABLE>
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AND SUBSIDIARY
5.1a PRO FORMA BALANCE SHEET--ASSETS
AS OF JUNE 30, 1999
Unaudited
<TABLE>
<CAPTION>
PRO FORMA
PRO GIVING
FORMA EFFECT TO
PER BOOK ADJ ADJ
<S> <C> <C> <C>
ASSETS:
Utility Plant, at original cost:
Electric $ 1,224,425 $ (99,420)[1]$ 1,125,005
Less: Accumulated provision
for depreciation 533,991 (41,821)[1] 492,170
---------- ---------- ----------
690,434 (57,599) 632,835
Construction work in progress 22,258 22,258
Nuclear fuel, net 23,436 23,436
---------- ---------- ----------
Total net utility plant 736,128 (57,599) 678,529
---------- ---------- ----------
Other Property and Investments:
Nuclear decommissioning trusts, at market 136,935 136,935
Investments in regional nuclear generating
companies, at equity 15,836 15,836
Other, at cost 7,533 7,533
---------- ---------- ----------
160,304 0 160,304
---------- ---------- ----------
Current Assets:
Cash 434 11,873 [2] 12,307
Receivables, net 31,268 31,268
Accounts receivable from
affiliated companies 9,849 9,849
Taxes receivable 11,826 2,870 [3] 14,696
Accrued utility revenues 16,378 16,378
Fuel, materials, and supplies,
at average cost 4,908 (1,978)[1] 2,930
Recoverable energy costs,
net--current portion 1,924 1,924
Prepayments and other 30,817 (3,993)[4] 26,824
---------- ---------- ----------
107,404 8,772 116,176
---------- ---------- ----------
Deferred Charges:
Regulatory assets:
Income taxes, net 53,757 53,757
Millstone 1 125,414 125,414
Unrecovered contractual obligations 68,498 68,498
Recoverable energy costs 17,547 17,547
Standard service offer deferral 22,064 22,064
Other 43,138 23,867 [5] 67,005
Unamortized debt expense 2,185 3,445 [6] 5,630
Other 4,322 (4,089)[1] 233
---------- ---------- ----------
336,925 23,223 360,148
---------- ---------- ----------
Total Assets $ 1,340,761 $ (25,604) $ 1,315,157
========== ========== ==========
</TABLE>
[1] See adjustments a, c.
[2] See adjustments a, c, d, f, h, j, k, n.
[3] See adjustment o.
[4] See adjustments a, h.
[5] See adjustments e, i.
[6] See adjustment l.
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AND SUBSIDIARY
5.1b PRO FORMA BALANCE SHEET--
CAPITALIZATION AND LIABILITIES
AS OF JUNE 30, 1999
Unaudited
(Thousands of Dollars)
<TABLE>
<CAPTION>
PRO FORMA
PRO GIVING
FORMA EFFECT TO
PER BOOK ADJ ADJ
<S> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stock $ 26,812 $ (19,598)[1]$ 7,214
Capital surplus, paid in 171,561 (125,402)[1] 46,159
Retained earnings 46,763 (7,130) 39,633
Accumulated other comprehensive income 160 160
---------- ---------- ----------
Total common stockholder's equity 245,296 (152,130) 93,166
Preferred stock not subject
to mandatory redemption 20,000 (20,000)[2] 0
Preferred stock subject
to mandatory redemption 16,500 (16,500)[2] 0
Long-term debt 290,025 (255,000)[2] 35,025
---------- ---------- ----------
Total capitalization 571,821 (443,630) 128,191
---------- ---------- ----------
Obligations Under Capital Leases 10,944 10,944
---------- ---------- ----------
Rate reduction bond obligation 0 302,718 [3] 302,718
---------- ---------- ----------
Current Liabilities:
Notes payable to banks 78,000 (58,625)[2] 19,375
Notes payable to affiliated company 51,100 51,100
Long-term debt and preferred stock--
current portion 61,500 (1,500)[2] 60,000
Obligations under capital leases --
current portion 21,848 21,848
Accounts payable 18,103 18,103
Accounts payable to affiliated companies 5,975 5,975
Accrued taxes 934 (934)[4] 0
Accrued interest 7,790 11,883 [5] 19,673
Other 12,624 12,624
---------- ---------- ----------
257,874 (49,176) 208,698
---------- ---------- ----------
Deferred Credits and Other
Long-Term Liabilities
Accumulated deferred income taxes 255,540 (949)[6] 254,591
Accumulated deferred investment tax credits 21,160 21,160
Decommissioning obligation -- Millstone 1 131,500 131,500
Deferred contractual obligations 68,498 68,498
Other 23,424 165,433 [7] 188,857
---------- ---------- ----------
500,122 164,484 664,606
---------- ---------- ----------
Total Capitalization and Liabilities $ 1,340,761 $ (25,604) $ 1,315,157
========== ========== ==========
</TABLE>
[1] See adjustment n.
[2] See adjustment j.
[3] See adjustment f.
[4] See adjustments a, d, g, h, k, m, o.
[5] See adjustments g, m.
[6] See adjustments b, e, i, l.
[7] See adjustments a, b, c.
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AND SUBSIDIARY
5.2a PRO FORMA INCOME STATEMENT
FOR THE 12 MONTHS ENDED JUNE 30, 1999
Unaudited
(Thousands of Dollars)
<TABLE>
<CAPTION>
PRO FORMA
PRO GIVING
FORMA EFFECT TO
PER BOOK ADJ ADJ
<S> <C> <C> <C>
Operating Revenues $ 401,999 $ 0 [1]$ 401,999
---------- ---------- ----------
Operating Expenses:
Operation --
Fuel, purchased and net interchange power 107,942 0 [2] 107,942
Other 134,534 0 [3] 134,534
Maintenance 56,260 56,260
Depreciation 39,470 39,470
Amortization of regulatory assets, net 8,395 8,395
Federal and state income taxes 8,675 0 [4] 8,675
Taxes other than income taxes 20,304 20,304
---------- ---------- ----------
Total operating expenses 375,580 0 375,580
---------- ---------- ----------
Operating Income 26,419 0 26,419
---------- ---------- ----------
Other Income:
Equity in earnings of regional nuclear
generating companies and subsidiary company 1,101 1,101
Other, net (2,704) (2,704)
Income taxes 2,819 4,753 [5] 7,572
---------- ---------- ----------
Other income, net 1,216 4,753 5,969
---------- ---------- ----------
Income before interest charges 27,635 4,753 32,388
---------- ---------- ----------
Interest Charges:
Interest on long-term debt 26,734 11,883 [5] 38,617
Other interest 2,074 2,074
---------- ---------- ----------
Interest charges, net 28,808 11,883 40,691
---------- ---------- ----------
Net (Loss) / Income $ (1,173)$ (7,130) $ (8,303)
========== ========== ==========
</TABLE>
[1] See adjustments a, b.
[2] See adjustments d, e.
[3] See adjustments h, i, k, l.
[4] See adjustments a, b, d, e, h, i, k, l.
[5] See adjustments g, m.
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AND SUBSIDIARY
5.2b PRO FORMA STATEMENT OF RETAINED EARNINGS
AS OF JUNE 30, 1999
Unaudited
(Thousands of Dollars)
<TABLE>
<CAPTION>
PRO FORMA
PRO GIVING
FORMA EFFECT TO
PER BOOK ADJ ADJ
<S> <C> <C> <C>
Balance at beginning of period $ 57,724 $ 0 $ 57,724
Net (loss) / income (1,173) (7,130) (8,303)
Common dividends 0 0 0
Cash dividends on preferred stock (2,969) 0 (2,969)
ESOP contribution (6,819) 0 (6,819)
---------- ---------- ----------
Balance at end of period $ 46,763 $ (7,130) $ 39,633
========== ========== ==========
</TABLE>
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AND SUBSIDIARY
5.2c PRO FORMA CAPITAL STRUCTURE
AS OF JUNE 30, 1999
Unaudited
(Thousands of Dollars)
<TABLE>
<CAPTION>
PRO FORMA
PRO GIVING
FORMA EFFECT TO
PER BOOK ADJ ADJ
<S> <C> <C> <C>
Long-term debt* $ 290,025 $ (255,000)[1]$ 35,025
Preferred stock not subject to
mandatory redemption 20,000 (20,000)[1] 0
Preferred stock subject to
mandatory redemption 16,500 (16,500)[1] 0
Common stock equity 245,296 (152,130) 93,166
---------- ---------- ----------
Total capitalization $ 571,821 $ (443,630) $ 128,191
========== ========== ==========
</TABLE>
*Does not include current portion
[1] See adjustment j.
WESTERN MASSACHUSETTS ELECTRIC COMPANY AND SUBSIDIARY
5.2d PRO FORMA ADJUSTMENTS TO FINANCIAL STATEMENTS
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
Debit Credit
<S> <C> <C>
a)Cash 49,409
Accumulated depreciation 6,081
Federal and state income taxes 11,874
Utility plant - electric 20,271
Fuel, materials & supplies 1,520
Prepayments and other 5,400
Other deferred charges 2,376
Other deferred credits 2,500
Operating revenues 23,423
Accrued taxes 11,874
To record the sale of 290 MW to Consolidated Edison and the related
transaction expenses and tax effect.
b)Operating revenues 23,423
Accumulated deferred income taxes 11,874
Other deferred credits 23,423
Federal and state income taxes 11,874
To record deferral of gain and deferral of related taxes.
c)Cash 185,090
Accumulated depreciation 35,740
Utility plant - electric 79,149
Fuel, materials & supplies 458
Other deferred charges 1,713
Other deferred credits 139,510
To record sale of 273 MW to Northeast Generation Company, an affiliate,
and the related transaction expenses and tax effects.
d)Fuel, purchased and net interchange power 20,000
Accrued taxes 8,000
Cash 20,000
Federal and state income taxes 8,000
To record the buydown of IPP contracts and related tax effect.
e)Regulatory assets, other 20,000
Federal and state income taxes 8,000
Fuel, purchased and net interchange power 20,000
Accumulated deferred income taxes 8,000
To record the deferral of IPP contracts costs and the associated
tax effect.
f)Cash 302,718
Rate reduction bonds obligation 302,718
To record the issuance of rate reduction bonds.
g)Interest expense 20,433
Accrued taxes 8,173
Accrued interest 20,433
Income taxes 8,173
To record interest expense on rate reduction bonds and related taxes.
h)Operating expense -- operation -- other 3,867
Prepayments and other 1,407
Accrued taxes 1,547
Cash 5,274
Federal and state income taxes 1,547
To record issuance expenses associated with securitization and related
tax effect.
i)Regulatory assets, other 3,867
Federal and state income taxes 1,547
Operating expense -- operation -- other 3,867
Accumulated deferred income taxes 1,547
To record the deferral of RRB issuance costs and the associated
tax effect.
j)Notes payable to bank 58,625
Long-term debt 255,000
Preferred stock subject to mandatory redemption 16,500
Preferred stock not subject to mandatory redemption 20,000
Long-term debt and preferred stock-current portion 1,500
Cash 351,625
To record the use of sale proceeds and securitization proceeds to retire
short-term and long-term debt, retire preferred stock.
k)Operating expense -- operation -- other 3,445
Accrued taxes 1,378
Cash 3,445
Federal and state income taxes 1,378
To record the associated costs and premiums of retiring debt.
l)Unamortized debt expense 3,445
Federal and state income taxes 1,378
Operating expense -- operation -- other 3,445
Accumulated deferred income taxes 1,378
To record deferral of debt retirement costs and related tax effects.
m)Accrued interest 8,550
Income taxes 3,420
Interest expense 8,550
Accrued taxes 3,420
To record decrease in interest costs associated with debt repurchase
and the related increase in taxes.
n)Common stock 19,598
Capital surplus 125,402
Cash 145,000
To record repurchase 783,910 of Common Stock at an average share price as
of June 30, 1999 of $184.97, par $25.
o)Taxes receivable 2,870
Accrued taxes 2,870
To reclasss debit balance in Accrued Taxes to Taxes receivable.
</TABLE>
NORTH ATLANTIC ENERGY CORPORATION
6.1a PRO FORMA BALANCE SHEET--ASSETS
AS OF JUNE 30, 1999
UNAUDITED
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
PRO
FORMA
PRO GIVING
FORMA EFFECT
PER BOOK ADJ TO ADJ
---------- ---------- ----------
<S> <C> <C> <C>
Utility Plant, at original cost:
Electric $ 735,103 $ (45,158)[1] $ 689,945
Less: Accumulated provision for
depreciation 174,103 504,877 [1] 678,980
---------- ---------- ----------
561,000 (550,035) 10,965
Construction work in progress 10,172 10,172
Nuclear fuel, net 26,062 26,062
---------- ---------- ----------
Total net utility plant 597,234 (550,035) 47,199
---------- ---------- ----------
Other Property and Investments:
Nuclear decommissioning trusts,
at market 40,533 40,533
---------- ---------- ----------
40,533 0 40,533
---------- ---------- ----------
Current Assets:
Cash 0 24,320 [2] 24,320
Special deposits 3,230 3,230
Notes receivable from affiliated companies 8,900 8,900
Receivables from affiliated companies 26,231 10,343 [3] 36,574
Materials and supplies, at average cost 12,268 12,268
Prepayments and other 1,725 1,725
---------- ---------- ----------
52,354 34,663 87,017
---------- ---------- ----------
Deferred Charges:
Regulatory assets:
Deferred costs--Seabrook 118,651 (118,651)[1] 0
Income taxes, net 36,509 (24,855)[1] 11,654
Recoverable energy costs 1,771 1,771
Unamortized loss on reacquired debt 7,575 7,575
Unamortized debt expense 2,261 2,261
---------- ---------- ----------
166,767 (143,506) 23,261
---------- ---------- ----------
Total Assets $ 856,888 $ (658,878) $ 198,010
========== ========== ==========
</TABLE>
[1] See adjustment b.
[2] See adjustment a,c,d,f,g, and h.
[3] See adjustment e.
NORTH ATLANTIC ENERGY CORPORATION
6.1b PRO FORMA BALANCE SHEET--CAPITALIZATION AND LIABILITIES
AS OF JUNE 30, 1999
UNAUDITED
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
PRO
FORMA
PRO GIVING
FORMA EFFECT
PER BOOK ADJ TO ADJ
--------- --------- ------------
<S> <C> <C> <C>
Capitalization:
Common stock $ 1 $ (1)[4] $ 0
Capital surplus, paid in 160,999 (160,838)[4] 161
Retained earnings 25,900 0 25,900
------------ ------------ ------------
Total common stockholder's equity 186,900 (160,839) 26,061
Long-term debt 335,000 (262,000)[5] 73,000
------------ ------------ ------------
Total capitalization 521,900 (422,839) 99,061
------------ ------------ ------------
Current Liabilities:
Long-term debt--current portion 70,000 70,000
Accounts payable 9,280 (8,250)[6] 1,030
Accounts payable to affiliated companies 1,032 1,032
Accrued interest 2,481 (2,481)[7] 0
Accrued taxes 3,686 0 [8] 3,686
Other 438 438
------------ ------------ ------------
86,917 (10,731) 76,186
------------ ------------ ------------
Deferred Credits and Other Long-Term Liabilities:
Accumulated deferred income taxes 207,452 (207,452)[9] 0
Deferred obligation to affiliated company 17,856 (17,856)[10] 0
Other 22,763 22,763
------------ ------------ ------------
248,071 (225,308) 22,763
------------ ------------ ------------
Total Capitalization and Liabilities $ 856,888 $ (658,878) $ 198,010
============ ============ ============
</TABLE>
[4] See adjustment a.
[5] See adjustment c.
[6] See adjustment h.
[7] See adjustment d and h.
[8] See adjustment d and e.
[9] See adjustment b and h.
[10] See adjustment f.
NORTH ATLANTIC ENERGY CORPORATION
6.2a PRO FORMA INCOME STATEMENT
FOR THE 12 MONTHS ENDED JUNE 30, 1999
UNAUDITED
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
PRO
PRO FORMA
FORMA GIVING
ADJ EFFECT
PER BOOK BUYDOWN TO ADJ
--------- --------- ------------
<S> <C> <C> <C>
Operating Revenues: $ 286,380 $ 674,520 [10]$ 960,900
--------- --------- ---------
Operating Expenses:
Operation--
Fuel 14,042 14,042
Other 40,226 0 [11] 40,226
Maintenance 21,417 21,417
Depreciation 26,629 504,877 [12] 531,506
Amortization of regulatory assets, net 85,476 188,664 [12] 274,140
Federal and state income taxes 35,512 11,745 [13] 47,257
Taxes other than income taxes 11,256 11,256
--------- --------- ---------
Total operating expenses 234,558 705,286 939,844
--------- --------- ---------
Operating Income / (Loss) 51,822 (30,766) 21,056
--------- --------- ---------
Other Income / (Loss):
Deferred Seabrook return--other funds 5,588 5,588
Other, net (7,536) (7,536)
Income taxes 14,723 11,745 [14] 26,468
--------- --------- ---------
Other income, net 12,775 11,745 24,520
--------- --------- ---------
Income / (loss) before interest charges 64,597 (19,021) 45,576
--------- --------- ---------
Interest charges:
Interest on long-term debt 48,759 (19,021)[14] 29,738
Other interest (777) (777)
Deferred Seabrook return--borrowed funds (10,371) (10,371)
--------- --------- ---------
Interest charges, net 37,611 (19,021) 18,590
--------- --------- ---------
Net Income $ 26,986 $ 0 $ 26,986
========= ========= =========
</TABLE>
[10] See adjustments a and d.
[11] See adjustments d and e.
[12] See adjustment b.
[13] See adjustments a, b, d and e.
[14] See adjustment d.
NORTH ATLANTIC ENERGY CORPORATION
6.2b PRO FORMA STATEMENT OF RETAINED EARNINGS
AS OF JUNE 30, 1999
UNAUDITED
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
PRO
PRO FORMA
FORMA GIVING
ADJ. EFFECT
PER BOOK BUYDOWN TO ADJ.
--------- --------- ----------
<S> <C> <C> <C>
Balance at beginning of period $ 48,914 $ 0 $ 48,914
Net income 26,986 0 26,986
Cash dividends (50,000) 0 (50,000)
ESOP Contribution 0 0 0
--------- --------- ---------
Balance at end of period $ 25,900 $ 0 $ 25,900
========= ========= =========
</TABLE>
NORTH ATLANTIC ENERGY CORPORATION
6.2c PRO FORMA CAPITAL STRUCTURE
AS OF JUNE 30, 1999
UNAUDITED
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
PRO
PRO FORMA
FORMA GIVING
ADJ. EFFECT
PER BOOK BUYDOWN TO ADJ.
-------- -------- ---------
<S> <C> <C> <C>
Long-term debt* $ 335,000 $ (262,000)[15]$ 73,000
Common stock equity 186,900 (160,839) 26,061
--------- --------- ---------
$ 521,900 $ (422,839) $ 99,061
========= ========= =========
</TABLE>
[15] See adjustment c.
*Does not include current portion
North Atlantic Energy Corporation
6.2d Pro Forma Adjustments to Financial Statements
(Thousands of Dollars)
<TABLE>
<CAPTION>
Debit Credit
<S> <C> <C>
a) Cash 416,125
Federal and state income taxes 277,416
Operating revenues 693,541
To record buydown of Seabrook Power Contract by PSNH and
related tax effects.
b) Depreciation 504,877
Amortization of regulatory assets, net 188,664
Accumulated deferred income taxes 277,416
Accumulated provision for
depreciation 504,877
Investment in utility plant 45,158
Regulatory assets, deferred
costs -- Seabrook 118,651
Regulatory assets, income
taxes, net 24,855
Federal and state income taxes 277,416
To record depreciation and amortization related to entry A above,
including deferred return in utility plant. Accumulated provision
for depreciation includes $40,544 reserve for nuclear
decommissioning costs.
c) Long-term debt 262,000
Cash 262,000
To retire long-term debt with proceeds from Seabrook Contract
Buydown.
d) Operating revenues 19,021
Operating expenses --
operation -- other 10,343
Accrued taxes 4,137
Accrued interest 19,021
Federal and state income taxes 7,608
Cash 29,364
Income taxes 11,745
Interest on long-term debt 19,021
To record debt retirement cost, the decrease in interest cost and
operating revenues as a result of retiring long-term debt and the
related tax effects.
e) Receivables from affiliated
companies 10,343
Federal and state income taxes 4,137
Operating expenses -- operation
-- other 10,343
Accrued taxes 4,137
To record deferral of debt retirement costs and related
tax effects.
f) Deferred obligation to
affiliated company 17,856
Cash 17,856
To record repayment of affiliated company liability to PSNH.
g) Common stock 1
Capital surplus, paid in 160,838
Cash 160,839
To record repurchase of 999 shares of common stock, $1 par at an
average price of $161,000.
h) Cash 78,254
Accounts payable 8,250
Accrued interest 16,540
Accumulated deferred income taxes 69,964
To record reclassification of cash overdraft.
</TABLE>
