Commission File Number: 30-246
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
FORM U5S
ANNUAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 1998
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 ANNUAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 1998
TABLE OF CONTENTS
Item Page
1. System Companies and Investments Therein 2
2. Acquisitions or Sales of Utility Assets 7
3. Issue, Sale, Pledge, Guarantee or Assumption
of System Securities 7
4. Acquisition, Redemption or Retirement of
System Securities 8
5. Investments in Securities of Nonsystem Companies 10
6. Officers and Directors 11
7. Contributions and Public Relations 40
8. Service, Sales and Construction Contracts 40
9. Wholesale Generators and Foreign Utility Companies 42
10. Financial Statements and Exhibits 44
Report of Independent Public Accountants F-1
Signature F-2
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 1998
Name of Company No. of Common % of
Name of Owner Shares Owned Voting Power
Northeast Utilities (NU) (1)
Name of Issuer
The Connecticut Light and
Power Company (CL&P) (2)(3)* 12,222,930 100%
Public Service Company of
New Hampshire (PSNH) (2)(3)* 1,000 100
Western Massachusetts
Electric Company (WMECO) (2)(3)* 1,072,471 100
North Atlantic Energy
Corporation (NAEC) (3) 1,000 100
Holyoke Water Power
Company (HWP) (3)* 480,000 100
Northeast Utilities Service
Company (NUSCO) (4) 1 100
Northeast Nuclear Energy
Company (NNECO) (5) 1,500 100
North Atlantic Energy Service
Corporation (NAESCO) (6) 1,000 100
The Rocky River Realty
Company (RRR) (7) 100 100
The Quinnehtuk Company (7) 3,500 100
Charter Oak Energy, Inc. (COE) (8)* 100 100
HEC Inc. (9)* 100 100
Select Energy, Inc. (10) 100 100
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 1998
(Continued)
Name of Company Issuer Owner's
Name of Owner Book Value Book Value
(000's) (000's)
Northeast Utilities (NU) (1)
Name of Issuer
The Connecticut Light and
Power Company (CL&P) (2)(3)* $996,871 $996,871
Public Service Company of
New Hampshire (PSNH) (2) (3)* 678,167 678,167
Western Massachusetts
Electric Company (WMECO) (2) (3) * 224,396 224,396
North Atlantic Energy
Corporation (NAEC) (3) 204,196 204,196
Holyoke Water Power
Company (HWP) (3)* 21,987 21,987
Northeast Utilities Service
Company (NUSCO) (4) 1 1
Northeast Nuclear Energy
Company (NNECO) (5) 16,167 16,167
North Atlantic Energy Service
Corporation (NAESCO) (6) 12 12
The Rocky River Realty
Company (RRR) (7) 684 684
The Quinnehtuk Company (7) (2,222) (2,222)
Charter Oak Energy, Inc. (COE) (8)* 9,540 9,540
HEC Inc. (9)* 3,437 3,437
Select Energy, Inc. (10) 4,797 4,797
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 1998
(Continued)
Name of Company No. of Common % of
Name of Owner Shares Owned Voting Power
Northeast Utilities (NU) (1)
Name of Issuer
Mode 1 Communications, Inc.
(Mode 1) (12)(13) 100 100
Name of Owner
The Connecticut Light and Power
Company (2)(3)***
Name of Issuer
Research Park, Incorporated 50 100
CL&P Capital, L.P. - 100
The City and Suburban Electric
and Gas Company** 100 100
Electric Power, Incorporated** 100 100
The Connecticut Transmission Corporation** 200 100
The Connecticut Steam Company** 10 100
The Nutmeg Power Company** 60 100
CL&P Receivables Corporation (CRC) (11) 100 100
Name of Owner
Western Massachusetts Electric Company(2)(3)
Name of Issuer
WMECO Receivables Corporation (WRC) (11) 100 100
Name of Owner
Public Service Company of New Hampshire (2)(3)
Name of Issuer
Properties, Inc. (7) 200 100
New Hampshire Electric Company** 1 100
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 1998
(Continued)
Name of Company Issuer Owner's
Name of Owner Book Value Book Value
(000's) (000's)
Northeast Utilities (NU) (1)
Name of Issuer
Mode 1 Communications, Inc. (Mode 1) (12) 12,463 12,463
Name of Owner
The Connecticut Light and Power
Company (2)(3)***
Name of Issuer
Research Park, Incorporated 56 56
CL&P Capital, L.P. 3,100 3,100
The City and Suburban Electric
and Gas Company** 1 1
Electric Power, Incorporated** 1 1
- --Noninterest Bearing Advance 1 1
The Connecticut Transmission Corporation** 5 5
The Connecticut Steam Company** 1 1
The Nutmeg Power Company** 2 2
CL&P Receivables Corporation (CRC) (11) 147,286 147,286
Name of Owner
Western Massachusetts Electric Company(2)(3)
Name of Issuer
WMECO Receivables Corporation (WRC) (11) 13,783 13,783
Name of Owner
Public Service Company of New Hampshire (2)(3)
Name of Issuer
Properties, Inc. (7) 2,572 2,572
- --Interest Bearing Advance 3,912 3,912
New Hampshire Electric Company** 1 1
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 1998
(Continued)
Name of Company No. of Common % of
Name of Owner Shares Owned Voting Power
Holyoke Water Power Company (3)
Name of Issuer
Holyoke Power and Electric Company 4,850 100
- -- Variable rate demand rates
Name of Owner
Charter Oak Energy, Inc. (8)
Name of Issuer
COE Development Corporation 100 100
COE Argentina I Corp. (8) 100 100
COE Argentina II Corp. 100 100
COE Ave Fenix Corporation 100 100
COE Tejona Corporation (8) - -
Name of Owner
HEC Inc. (9)
Name of Issuer
HEC International Corporation 100 100
HEC Energy Consulting Canada, Inc. 100 100
Southwest HEC Energy Services L.L.C. - 50
Name of Company Issuer Owner's
Name of Owner Book Value Book Value
(000's) (000's)
Holyoke Water Power Company (3)
Name of Issuer
Holyoke Power and Electric Company 332 332
- -- Variable rate demand notes 424 424
Name of Owner
Charter Oak Energy, Inc. (8)
Name of Issuer
COE Development Corporation 3,055 3,055
COE Argentina I Corp. (8) - -
COE Argentina II Corp. 1,179 1,179
COE Ave Fenix Corporation (1,256) (1,256)
COE Tejona Corporation (8) - -
Name of Owner
HEC Inc. (9)
Name of Issuer
HEC International Corporation 4 4
HEC Energy Consulting Canada, Inc. 9 9
Southwest HEC Energy Services L.L.C. (333) (333)
*Consolidated.
**Inactive.
***Exempt holding company - see Commission Release Nos. 13048 and 14947.
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF
DECEMBER 31, 1998 (Continued)
(1) For information about NU's investment in the hydro-transmission
companies, see Note A to Item 1.
(2) For information regarding CL&P's, PSNH's, and WMECO's investment in
regional nuclear generating companies, see Note A to Item 1.
(3) Electric utility operating subsidiary.
(4) Service company which provides support services for the NU system
companies.
(5) Agent for the NU system companies and other New England utilities in
operating the Millstone nuclear generating facilities.
(6) Agent for the joint owners in operating the Seabrook 1 nuclear
generating facility.
(7) Subsidiary which constructs, acquires, or leases some of the property
and facilities used by one or more of the system companies.
(8) Directly and through its subsidiaries, COE develops and invests in
cogeneration, small power production, and other forms of nonutility
generation and in exempt wholesale generators and foreign utility
companies, as permitted under the Energy Policy Act of 1992. On
March 25, 1997, the NU Board of Trustees approved the offering for
the sale of COE. The COE Tejona Corporation subsidiary had been sold
effective May 5, 1998 and the COE Argentina I Corporation was dissolved
on June 30, 1998.
(9) Directly and through its subsidiaries, HEC Inc. provides energy
management, demand-side management, and related consulting services
for commercial, industrial, and institutional electric companies and
electric utility companies.
(10) Select Energy, Inc., a Connecticut corporation, commenced operations in
October 1996. The corporation engages in the brokering, marketing,
transportation, storage and sale of energy commodities at wholesale in
designated geographic areas, and in the brokering and marketing of
electricity to retail customers participating in various pilot programs.
(11) In 1996, CL&P and WMECO entered into agreements under which each system
company may sell from time to time, up to $200 million and $40 million,
respectively, of eligible accounts receivable and accrued utility
revenues. During 1997, CL&P and WMECO restructured their respective
agreements to comply with the Financial Accounting Standards Board's
Statement of Financial Accounting Standard's No. 125, which required,
in part, the creation of CRC and WRC. CRC's and WRC's sole purpose is
to purchase receivables from CL&P and WMECO, respectively, and
periodically resell individual undivided interests in those receivables
to third party purchasers.
12) In June 1996, Mode 1 Communications, Inc., a Connecticut corporation,
was formed for the purpose of investing in FiveCom LLC, its affiliate
NECOM LLC and/or other affiliates for the construction of the New England
Optical Network, a fiber-optic communications network to run throughout
New England, and to participate in other associated transactions. For
further information on Mode 1, see Note 4 on Item 5 of this Form U5S.
(13) On January 4, 1999, NU formed NU Enterprises, Inc. (NUEI), a direct
subsidiary of NU and holding company for the NU system's unregulated,
competitive companies. NUEI in turn the same day formed Northeast
Generation Company (NGC) and Northeast Generation Services (NGS) and
acquired the stock of NU's existing unregulated companies, Select
Energy, Inc., HEC Inc., and Mode 1 Communications, Inc.
[CAPTION]
<TABLE>
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 1998 (Continued)
Note A: The following are CL&P's, PSNH's, and WMECO's total investments in regional nuclear
generating companies and Northeast Utilities' investments in New England Hydro-
Transmission Electric Company, Inc. and New England Hydro-Transmission Corporation:
Number Of % of Carrying Value
Name of Owner Name of Issuer Common Shares Voting Power to Owners
(000's)
<S> <C> <C> <C>
The Connecticut Light and Power Company:
Connecticut Yankee Atomic Power Co. (b) 120,750 34.5% $36,254
Maine Yankee Atomic Power Co. (b) 60,000 12.0 10,400
Vermont Yankee Nuclear Power Corp. 37,242 9.5 5,463
Yankee Atomic Electric Co. (b) 37,583 24.5 4,881
Public Service Company of New Hampshire:
Connecticut Yankee Atomic Power Co. (b) 17,500 5.0 5,457
Maine Yankee Atomic Power Co. (b) 25,000 5.0 4,313
Vermont Yankee Nuclear Power Corp. 15,681 4.0 2,227
Yankee Atomic Electric Co. (b) 10,738 7.0 1,356
Western Massachusetts Electric Company:
Connecticut Yankee Atomic Power Co. (b) 33,250 9.5 9,974
Maine Yankee Atomic Power Co. (b) 15,000 3.0 2,629
Vermont Yankee Nuclear Power Corp. 9,800 2.5 1,442
Yankee Atomic Electric Co. (b) 10,738 7.0 1,395
Total System Investment:
Connecticut Yankee Atomic Power Co. (b) 171,500 49.0 51,685
Maine Yankee Atomic Power Co. (b) 100,000 20.0 17,342
Vermont Yankee Nuclear Power Corp. 62,723 16.0 9,132
Yankee Atomic Electric Co. (b) 59,059 38.5 7,632
Northeast Utilities:
New England Hydro-Transmission
Electric Company, Inc. 906,324 22.66 11,569
New England Hydro-Transmission Corp. 4,871 22.66 6,123
(b) Yankee Atomic Electric Co.'s, Connecticut Yankee Atomic Power Co.'s, and Maine
Yankee Atomic Power Co.'s nuclear power plants were shut down permanently on
February 26, 1992, December 4, 1996, and August 6, 1997, respectively.
</TABLE>
ITEM 2. ACQUISITIONS OR SALES OF UTILITY ASSETS
No items to be reported for 1998.
On January 22, 1999, WMECO signed an agreement to sell 290 MW of
fossil and hydroelectric generation assets to Consolidated Edison
Energy, Inc. of New York. The sale is expected to occur during 1999.
ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF SYSTEM SECURITIES
Descriptions of transactions involving the issue, sale, pledge,
guarantee or assumption of system securities, including short-term
borrowings, have been filed pursuant to Rule 24, with the exception
of certain NU guarantees incident to the procurement of surety bonds
and the issue of certain securities, as described below.
In the ordinary course of their business, the NU subsidiary companies
are required to provide surety or performance bonds. From time to
time, NU guarantees the payment of such a bond by its subsidiary
through the indemnification of the surety company or agency which has
agreed to provide the bond. NU's guarantee of these surety bonds is
exempt from the provisions of Section 12(b) of the Public Utility
Holding Company Act of 1935, pursuant to Rule 45(b)(6) thereunder.
As of December 31, 1998, NU had $53,310,000 of such guarantees
outstanding, which was the highest amount outstanding during 1998.
In addition, information relating to the following issuances has been
filed on Form U-6B-2 in accordance with Rule 52:
1. Issuance on May 8, 1998 by The Connecticut Light and Power Company
(CL&P) of $72,900,000 aggregate principal amount of First and
Refunding Mortgage Bonds, 1998 Series A, to secure CL&P's
obligations under a Lease Agreement relating to the Niantic Bay
Fuel Trust.
2. Issuance on May 8, 1998 by Western Massachusetts Electric Company
(WMECO) of $90,000,000 aggregate principal amount of First Mortgage
Bonds, 1998 Series A, to secure WMECO's obligations under a Lease
Agreement relating to the Niantic Bay Fuel Trust.
3. Issuance by Public Service Company of New Hampshire (PSNH), in an
integrated transaction on May 1, 1998 involving (i) issuance of a
$75 million revolving credit facility secured by first mortgage
bond and accounts receivable security, (ii) the issuance of
$75,000,000 aggregate principal amount of the Company's First
Mortgage Bonds, 1998 Series H to secure the revolving credit
facility, (iii) amendment and extension of Letters of Credit
(LOC) supporting its Series D and E taxable pollution control
revenue bonds and related Letters of Credit and Reimbursement
Agreements, (iv) conversion of Series D and E tax-exempt
pollution control revenue bonds from flexible to fixed rate mode.
4. Issuance by Connecticut Yankee Atomic Power Company (CY) of up to
$90,000,000 aggregate principal amount of secured short term notes
pursuant to a Credit Agreement between CY and a group of lenders,
dated as of March 7, 1997.
5. Issuance by CY of $30,000,000 aggregate principal amount of
secured notes pursuant to a Term Loan Agreement between CY and
Toronto Dominion (Texas), Inc., dated as of August 22, 1997.
[CAPTION]
<TABLE>
ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES (1)
Amounts Acquired Amounts Retired/Debt Repayment
Number of Shares Number of Shares
Name and Issuer and Title of Issue or Principal Amount Consideration or Principal Amount Consideration
<S> <C> <C> <C> <C>
The Connecticut Light and
Power Company
First Mortgage Bonds -
7.25% Series VV $ 25,000,000 $ 25,000,000 $ 25,000,000 $ 25,000,000
6.50% Series T $ 20,000,000 $ 20,000,000 $ 20,000,000 $ 20,000,000
$ 45,000,000 $ 45,000,000 $ 45,000,000 $ 45,000,000
Other Notes/Agreements - (2)
Other $ 5,710 $ 5,710 $ 5,710 $ 5,710
$ 5,710 $ 5,710 $ 5,710 $ 5,710
Western Massachusetts
Electric Company
First Mortgage Bonds -
Series G - 6.75% $ 9,800,000 $ 9,800,000 $ 9,800,000 $ 9,800,000
Public Service Company
of New Hampshire
9.17% Series B $170,000,000 $170,000,000 $170,000,000 $170,000,000
</TABLE>
[CAPTION]
<TABLE>
ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES (1) (Continued)
Amounts Acquired Amounts Retired/Debt Repayment
Number of Shares Number of Shares
Name and Issuer and Title of Issue or Principal Amount Consideration or Principal Amount Consideration
<S> <C> <C> <C> <C>
NU Parent
8.58% Series A Note $11,000,000 $11,000,000 $11,000,000 $11,000,000
8.38% Series B Note 6,000,000 6,000,000 6,000,000 6,000,000
$17,000,000 $17,000,000 $17,000,000 $17,000,000
The Rocky River Realty Company
Other Notes/Agreements -
7.875% Installment Note (2) $ 840,000 $ 840,000 $ 840,000 $ 840,000
Variable Rate Mortgage Note (3) 69,679 69,679 69,679 69,679
8.81% Series A Note (3) 828,668 828,668 828,668 828,668
$ 1,738,347 $ 1,738,347 $ 1,738,347 $ 1,738,347
Northeast Nuclear Energy Company
Other Notes/Agreements -
7.67% Senior Notes $ 6,011,110 $ 6,011,110 $ 6,011,110 $ 6,011,110
North Atlantic Energy Corporation
First Mortgage Bonds -
9.05% Series A $20,000,000 $20,000,000 $20,000,000 $20,000,000
(1) For acquisitions, redemptions, or retirements of system securities, other than preferred stock, all
transactions exempt pursuant to Rule 42(b)(2) or (4).
(2) Unsecured.
(3) Secured.
</TABLE>
[CAPTION]
<TABLE>
ITEM 5. INVESTMENTS INSECURITIES OF NONSYSTEM COMPANIES
Security Number Of
Name of Owner Name of Issuer Owned (1) Shares
<S> <C> <C> <C>
Western Massachusetts Massachusetts Mutual
Electric Company Life Insurance Note -
Public Service Company Amoskeag Industries,
of New Hampshire Inc. Stock 1,000
Northeast Utilities (Parent) Connecticut Seed Limited Partner-
Ventures, Ltd. ship Interest -
8 Subsidiaries (2) Various Stock, Debentures,
and Notes -
COE Ave Fenix Corp. Ave Fenix, S.A. Stock -
COE Tejona Corp. (3) Plantas Eolicas S.A. Stock -
Stock -
Mode 1 Communications, NorthEast Optic
Inc. (4) Network, Inc. Stock 4,774,038
</TABLE>
<TABLE>
ITEM 5. INVESTMENTS INSECURITIES OF NONSYSTEM COMPANIES (Continued)
% of Carrying
Name of Owner Name of Issuer Voting Power Value to Owners
(000's)
<S> <C> <C> <C>
Western Massachusetts Massachusetts Mutual
Electric Company Life Insurance - $ 190
Public Service Company Amoskeag Industries,
of New Hampshire Inc. - $ 100
Northeast Utilities (Parent) Connecticut Seed
Ventures, Ltd. - $ 67
8 Subsidiaries (2) Various
- $ 300
COE Ave Fenix Corp. Ave Fenix, S.A. - $ 2,496
COE Tejona Corp. (3) Plantas Eolicas S.A. - $ -
- $ -
Mode 1 Communications, NorthEast Optic
Inc. (4) Network, Inc. 29.7% $13,838
(1) Recorded at cost on owners' books. Partnership interests are accounted for
under the equity method of accounting.
(2) The Connecticut Light and Power Company, Western Massachusetts Electric
Company, Holyoke Water Power Company, The Quinnehtuk Company, Northeast
Utilities Service Company, Northeast Utilities (Parent), Public Service
Company of New Hampshire, and Rocky River Realty Company.
(3) As of December 1, 1998, the NU system companies' investments in COE Tejona
Corp. had been sold. For further information, refer to Note 8, Item 1 of
this Form U5S.
(4) Mode 1 Communications, Inc., is a wholly owned subsidiary of NU. In July
1998, Mode 1's equity investments, FiveCom LLC and NECOM LLC, reorganized
along with other related companies to form a new company, NorthEast Optic
Network, Inc. (NEON). Mode 1's ownership interest of 40.78 percent in
the new company was equal to its combined ownership interest in FiveCom
LLC and NECOM LLC. In August 1998, NEON issued 4,000,000 new common
shares on the open market in an initial public offering.
</TABLE>
ITEM 6. OFFICERS AND DIRECTORS
Part I. As of December 31, 1998
1. The following is a list of the names and principal business
addresses of the individuals who are Trustees of Northeast
Utilities (NU), but who are not officers or directors of any other
NU system company. The names of the officers and directors of system
companies appear in Section 2 below.
Cotton Mather Cleveland William J. Pape II
Mather Associates American-Republican, Inc.
123 Main Street P.O. Box 2090
P.O. Box 935 398 Meadow Street
New London, NH 03257 Waterbury, CT 06722-2090
Mr. William F. Conway Robert E. Patricelli
c/o Northeast Utilities Women's Health USA, Inc.
P.O. Box 270 22 Waterville Road
Hartford, CT 06141-0270 Avon, CT 06001
E. Gail de Planque, Ph.D John F. Swope
c/o Northeast Utilities c/o Northeast Utilities
P.O. Box 270 P. O. Box 270
Hartford, CT 06141-0270 Hartford, CT 06141-0270
Elizabeth T. Kennan John F. Turner
c/o Northeast Utilities The Conservation Fund
P.O. Box 270 1800 North Kent Street, Suite 1120
Hartford, CT 06161-0270 Arlington, VA 22209
2. Following are the names of and positions held by the officers
and directors of all system companies (excluding the Trustees
of Northeast Utilities who are listed in Section 1 above).
NAMES OF SYSTEM COMPANIES WITH WHICH CONNECTED AS OF DECEMBER 31, 1998
NU City and Suburban CL&P
Michael G. Morris CHB, P, CEO, T CH, P, CEO CH, D
Bruce D. Kenyon (1) PN PN, D
Hugh C. MacKenzie (2) PR P, D
John H. Forsgren EVP, CFO EVP, CFO EVP, CFO, D
Cheryl W. Grise' SVP, S, GC SVP, S, GC, D SVP, S, GC
Robert G. Abair (3)
David B. Amerine
David H. Boguslawski VP
Michael H. Brothers
Gregory B. Butler
John T. Carlin
Bruce L. Drawbridge (4)
Stephen J. Fabiani
Barry Ilberman
John B. Keane D VP
Mary Jo Keating
Robert J. Kost VP
Kerry J. Kuhlman (5)
Keith R. Marvin
David R. McHale VP, TRS VP, TRS VP, TRS
William J. Nadeau VP
Raymond P. Necci
John W. Noyes
Leon J. Olivier
Rodney O. Powell VP
John J. Roman VP, C VP, C VP, C
Frank C. Rothen
Frank P. Sabatino (6)
Gary D. Simon
John P. Stack
Lisa J. Thibdaue VP
Richard L. Tower VP
Dennis E. Welch VP
Roger C. Zaklukiewicz VP
Theresa H. Allsop D
Thomas V. Foley
Patricia A. Wood
H. Donald Burbank*
David S. Dayton*
Linda A. Jensen*
Thomas W. Philbin*
James B. Redden*
Ted C. Feigenbaum**
William T. Frain, Jr.***
Gary A. Long***
Paul E. Ramsey***
Robert A. Bersak***
John C. Collins (7)
Gerald Letendre (8)
Jane E. Newman (9)
A. John Stremlaw (10)
Alicia Burke (11)
Susan M. Burdick-Brennan (12)
CL&P
Capital (13) COE COE Argen II
Michael G. Morris CH, P, CEO, D CH, P, CEO, D
Bruce D. Kenyon (1)
Hugh C. MacKenzie (2)
John H. Forsgren EVP, CFO, D EVP, CFO, D
Cheryl W. Grise' SVP, S, GC SVP, S, GC
Robert G. Abair (3)
David B. Amerine
David H. Boguslawski
Michael H. Brothers
Gregory B. Butler
John T. Carlin
Bruce L. Drawbridge (4)
Stephen J. Fabiani
Barry Ilberman
John B. Keane
Mary Jo Keating
Robert J. Kost
Kerry J. Kuhlman (5)
Keith R. Marvin
David R. McHale VP, TRS, D VP, TRS, D
William J. Nadeau
Raymond P. Necci
John W. Noyes
Leon J. Olivier
Rodney O. Powell
John J. Roman VP, C
Frank C. Rothen
Frank P. Sabatino (6)
Gary D. Simon
John P. Stack
Lisa J. Thibdaue
Richard L. Tower
Dennis E. Welch
Roger C. Zaklukiewicz
Theresa H. Allsop
Thomas V. Foley
Patricia A. Wood
H. Donald Burbank*
David S. Dayton*
Linda A. Jensen*
Thomas W. Philbin*
James B. Redden*
Ted C. Feigenbaum**
William T. Frain, Jr.***
Gary A. Long***
Paul E. Ramsey***
Robert A. Bersak***
John C. Collins (7)
Gerald Letendre (8)
Jane E. Newman (9)
A. John Stremlaw (10)
Alicia Burke (11)
Susan M. Burdick-Brennan (12)
COE COE
Ave Fenix COE Develop Tejona (14)
Michael G. Morris CH, P, CEO, D CH, P, CEO, D
Bruce D. Kenyon (1)
Hugh C. MacKenzie (2)
John H. Forsgren EVP, CFO, D EVP, CFO, D
Cheryl W. Grise' SVP, S, GC SVP, S, GC
Robert G. Abair (3)
David B. Amerine
David H. Boguslawski
Michael H. Brothers
Gregory B. Butler
John T. Carlin
Bruce L. Drawbridge (4)
Stephen J. Fabiani
Barry Ilberman
John B. Keane
Mary Jo Keating
Robert J. Kost
Kerry J. Kuhlman (5)
Keith R. Marvin
David R. McHale VP, TRS, D VP, TRS, D
William J. Nadeau
Raymond P. Necci
John W. Noyes
Leon J. Olivier
Rodney O. Powell
John J. Roman
Frank C. Rothen
Frank P. Sabatino (6)
Gary D. Simon
John P. Stack
Lisa J. Thibdaue
Richard L. Tower
Dennis E. Welch
Roger C. Zaklukiewicz
Theresa H. Allsop
Thomas V. Foley
Patricia A. Wood
H. Donald Burbank*
David S. Dayton*
Linda A. Jensen*
Thomas W. Philbin*
James B. Redden*
Ted C. Feigenbaum**
William T. Frain, Jr.***
Gary A. Long***
Paul E. Ramsey***
Robert A. Bersak***
John C. Collins (7)
Gerald Letendre (8)
Jane E. Newman (9)
A. John Stremlaw (10)
Alicia Burke (11)
Susan M. Burdick-Brennan (12)
Conn Steam Conn Trans CRC
Michael G. Morris CH, P, CEO CH, P, CEO P, CEO, D
Bruce D. Kenyon (1)
Hugh C. MacKenzie (2) D
John H. Forsgren EVP, CFO EVP, CFO EVP, CFO, D
Cheryl W. Grise' SVP, S, GC, D SVP, S, GC, D SVP, S, GC
Robert G. Abair (3)
David B. Amerine
David H. Boguslawski
Michael H. Brothers
Gregory B. Butler
John T. Carlin
Bruce L. Drawbridge (4)
Stephen J. Fabiani
Barry Ilberman
John B. Keane D D
Mary Jo Keating
Robert J. Kost
Kerry J. Kuhlman (5)
Keith R. Marvin
David R. McHale VP, TRS VP, TRS VP, TRS
William J. Nadeau
Raymond P. Necci
John W. Noyes
Leon J. Olivier
Rodney O. Powell
John J. Roman VP, C VP, C VP, C
Frank C. Rothen
Frank P. Sabatino (6)
Gary D. Simon
John P. Stack
Lisa J. Thibdaue
Richard L. Tower
Dennis E. Welch
Roger C. Zaklukiewicz
Theresa H. Allsop D D
Thomas V. Foley
Patricia A. Wood
H. Donald Burbank*
David S. Dayton*
Linda A. Jensen*
Thomas W. Philbin*
James B. Redden*
Ted C. Feigenbaum**
William T. Frain, Jr.***
Gary A. Long***
Paul E. Ramsey***
Robert A. Bersak***
John C. Collins (7)
Gerald Letendre (8)
Jane E. Newman (9)
A. John Stremlaw (10)
Alicia Burke (11)
Susan M. Burdick-Brennan (12) D
EPI HEC HEC Canada
Michael G. Morris CH, P, CEO CHB, CEO, D CHB, CEO
Bruce D. Kenyon (1)
Hugh C. MacKenzie (2)
John H. Forsgren EVP, CFO CH(E), D CAO
Cheryl W. Grise' SVP, S, GC, D
Robert G. Abair (3)
David B. Amerine
David H. Boguslawski
Michael H. Brothers
Gregory B. Butler
John T. Carlin
Bruce L. Drawbridge (4)
Stephen J. Fabiani
Barry Ilberman
John B. Keane D
Mary Jo Keating
Robert J. Kost
Kerry J. Kuhlman (5)
Keith R. Marvin
David R. McHale VP, TRS
William J. Nadeau
Raymond P. Necci
John W. Noyes
Leon J. Olivier
Rodney O. Powell
John J. Roman VP, C
Frank C. Rothen
Frank P. Sabatino (6)
Gary D. Simon
John P. Stack
Lisa J. Thibdaue
Richard L. Tower
Dennis E. Welch
Roger C. Zaklukiewicz
Theresa H. Allsop D
Thomas V. Foley
Patricia A. Wood
H. Donald Burbank* VP VP
David S. Dayton* VP, D VP
Linda A. Jensen* VP, TRS, CL VP, TRS, CL
Thomas W. Philbin* P, D P
James B. Redden* VP VP
Ted C. Feigenbaum**
William T. Frain, Jr.***
Gary A. Long***
Paul E. Ramsey***
Robert A. Bersak***
John C. Collins (7)
Gerald Letendre (8)
Jane E. Newman (9)
A. John Stremlaw (10) D
Alicia Burke (11)
Susan M. Burdick-Brennan (12)
HEC HEC
International Southwest (15) HP&E
Michael G. Morris CHB, CEO, D CH, CEO, D
Bruce D. Kenyon (1)
Hugh C. MacKenzie (2) P, D
John H. Forsgren EVP, CFO, D EVP, CFO, D
Cheryl W. Grise' SVP, S, GC
Robert G. Abair (3) VP, CAO
David B. Amerine
David H. Boguslawski
Michael H. Brothers
Gregory B. Butler
John T. Carlin
Bruce L. Drawbridge (4)
Stephen J. Fabiani
Barry Ilberman
John B. Keane VP
Mary Jo Keating
Robert J. Kost
Kerry J. Kuhlman (5)
Keith R. Marvin
David R. McHale VP, TRS
William J. Nadeau VP
Raymond P. Necci
John W. Noyes
Leon J. Olivier
Rodney O. Powell
John J. Roman VP, C
Frank C. Rothen
Frank P. Sabatino (6)
Gary D. Simon
John P. Stack
Lisa J. Thibdaue
Richard L. Tower
Dennis E. Welch VP
Roger C. Zaklukiewicz VP
Theresa H. Allsop
Thomas V. Foley C
Patricia A. Wood
H. Donald Burbank* VP
David S. Dayton* VP, D
Linda A. Jensen* VP, TRS, CL
Thomas W. Philbin* P, D
James B. Redden* VP
Ted C. Feigenbaum**
William T. Frain, Jr.***
Gary A. Long***
Paul E. Ramsey***
Robert A. Bersak***
John C. Collins (7)
Gerald Letendre (8)
Jane E. Newman (9)
A. John Stremlaw (10)
Alicia Burke (11)
Susan M. Burdick-Brennan (12)
HWP Mode 1 NAEC
Michael G. Morris CH, CEO, D P, CEO, D CH, D
Bruce D. Kenyon (1) P, CEO, D
Hugh C. MacKenzie (2) P, D
John H. Forsgren EVP, CFO, D EVP, CFO, D EVP, CFO, D
Cheryl W. Grise' SVP, S, GC SVP, S, GC SVP, S, GC
Robert G. Abair (3) VP, CAO
David B. Amerine
David H. Boguslawski
Michael H. Brothers
Gregory B. Butler
John T. Carlin
Bruce L. Drawbridge (4)
Stephen J. Fabiani
Barry Ilberman
John B. Keane VP VP
Mary Jo Keating
Robert J. Kost
Kerry J. Kuhlman (5)
Keith R. Marvin
David R. McHale VP, TRS VP, TRS, D VP, TRS
William J. Nadeau VP
Raymond P. Necci
John W. Noyes VP
Leon J. Olivier
Rodney O. Powell
John J. Roman VP, C VP, C VP, C
Frank C. Rothen
Frank P. Sabatino (6)
Gary D. Simon
John P. Stack
Lisa J. Thibdaue
Richard L. Tower
Dennis E. Welch VP VP
Roger C. Zaklukiewicz VP
Theresa H. Allsop
Thomas V. Foley C
Patricia A. Wood
H. Donald Burbank*
David S. Dayton*
Linda A. Jensen*
Thomas W. Philbin*
James B. Redden*
Ted C. Feigenbaum** EVP, CNO
William T. Frain, Jr.***
Gary A. Long***
Paul E. Ramsey***
Robert A. Bersak***
John C. Collins (7)
Gerald Letendre (8)
Jane E. Newman (9)
A. John Stremlaw (10)
Alicia Burke (11)
Susan M. Burdick-Brennan (12)
NAESCO NHEC NNECO
Michael G. Morris CH, D CH, CEO CH, D
Bruce D. Kenyon (1) P, CEO, D P, CEO, D
Hugh C. MacKenzie (2)
John H. Forsgren EVP, CFO, D EVP, CFO, D
Cheryl W. Grise' SVP, S, GC SVP, S, GC
Robert G. Abair (3)
David B. Amerine VP
David H. Boguslawski
Michael H. Brothers VP
Gregory B. Butler
John T. Carlin VP
Bruce L. Drawbridge (4) DS
Stephen J. Fabiani
Barry Ilberman
John B. Keane VP
Mary Jo Keating
Robert J. Kost
Kerry J. Kuhlman (5)
Keith R. Marvin
David R. McHale VP, TRS VP, TRS VP, TRS
William J. Nadeau
Raymond P. Necci VP VP
John W. Noyes
Leon J. Olivier SVP, CNO
Rodney O. Powell
John J. Roman VP, C VP, C VP, C
Frank C. Rothen VP VP
Frank P. Sabatino (6)
Gary D. Simon
John P. Stack
Lisa J. Thibdaue
Richard L. Tower
Dennis E. Welch VP
Roger C. Zaklukiewicz
Theresa H. Allsop
Thomas V. Foley
Patricia A. Wood
H. Donald Burbank*
David S. Dayton*
Linda A. Jensen*
Thomas W. Philbin*
James B. Redden*
Ted C. Feigenbaum** EVP, CNO
William T. Frain, Jr.*** P, D
Gary A. Long*** VP, D
Paul E. Ramsey*** VP, D
Robert A. Bersak*** S, D
John C. Collins (7)
Gerald Letendre (8)
Jane E. Newman (9)
A. John Stremlaw (10)
Alicia Burke (11)
Susan M. Burdick-Brennan (12)
Properties
NUSCO Nutmeg Power Inc.
Michael G. Morris CH, P, CEO, D CH, P, CEO CH, CEO, D
Bruce D. Kenyon (1) PN
Hugh C. MacKenzie (2) PR
John H. Forsgren EVP, CFO, D EVP, CFO EVP, CFO, D
Cheryl W. Grise' SVP, S, GC SVP, S, GC, D
Robert G. Abair (3)
David B. Amerine VP
David H. Boguslawski VP
Michael H. Brothers VP
Gregory B. Butler VP
John T. Carlin VP
Bruce L. Drawbridge (4)
Stephen J. Fabiani VP
Barry Ilberman VP
John B. Keane VP, D D
Mary Jo Keating VP
Robert J. Kost
Kerry J. Kuhlman (5)
Keith R. Marvin VP, CIO
David R. McHale VP, TRS VP, TRS VP, TRS
William J. Nadeau VP
Raymond P. Necci VP
John W. Noyes
Leon J. Olivier SVP, CNO
Rodney O. Powell
John J. Roman VP, C VP, C VP, C
Frank C. Rothen VP
Frank P. Sabatino (6) VP
Gary D. Simon SVP
John P. Stack
Lisa J. Thibdaue VP
Richard L. Tower
Dennis E. Welch VP
Roger C. Zaklukiewicz VP
Theresa H. Allsop D
Thomas V. Foley
Patricia A. Wood
H. Donald Burbank*
David S. Dayton*
Linda A. Jensen*
Thomas W. Philbin* VP
James B. Redden*
Ted C. Feigenbaum** EVP
William T. Frain, Jr.*** P, D
Gary A. Long*** VP
Paul E. Ramsey*** VP
Robert A. Bersak*** S
John C. Collins (7)
Gerald Letendre (8)
Jane E. Newman (9)
A. John Stremlaw (10)
Alicia Burke (11)
Susan M. Burdick-Brennan (12)
PSNH Quinn. Research Park
Michael G. Morris CH, CEO, D CH, P, CEO, D CH, P, CEO, D
Bruce D. Kenyon (1) PN, D
Hugh C. MacKenzie (2) D PR, D PR, D
John H. Forsgren EVP, CFO, D EVP, CFO, D EVP, CFO, D
Cheryl W. Grise' SVP, S, GC SVP, S, GC SVP, S, GC
Robert G. Abair (3) VP, CAO
David B. Amerine
David H. Boguslawski VP
Michael H. Brothers
Gregory B. Butler
John T. Carlin
Bruce L. Drawbridge (4)
Stephen J. Fabiani
Barry Ilberman
John B. Keane VP VP
Mary Jo Keating
Robert J. Kost
Kerry J. Kuhlman (5)
Keith R. Marvin
David R. McHale VP, TRS VP, TRS VP, TRS
William J. Nadeau VP
Raymond P. Necci
John W. Noyes
Leon J. Olivier
Rodney O. Powell
John J. Roman VP, C VP, C VP, C
Frank C. Rothen
Frank P. Sabatino (6)
Gary D. Simon
John P. Stack
Lisa J. Thibdaue VP
Richard L. Tower
Dennis E. Welch VP VP VP
Roger C. Zaklukiewicz VP VP
Theresa H. Allsop
Thomas V. Foley
Patricia A. Wood C
H. Donald Burbank*
David S. Dayton*
Linda A. Jensen*
Thomas W. Philbin*
James B. Redden*
Ted C. Feigenbaum**
William T.
Frain, Jr.*** P, COO, D
Gary A. Long*** VP
Paul E. Ramsey*** VP
Robert A. Bersak***
John C. Collins (7) D
Gerald Letendre (8) D
Jane E. Newman (9) D
A. John Stremlaw (10)
Alicia Burke (11)
Susan M. Burdick-Brennan (12)
RRR Select WMECO
Michael G. Morris CH, P, CEO, D CH, P, CEO, D CH, D
Bruce D. Kenyon (1) PN, D
Hugh C. MacKenzie (2) PR, D P, D
John H. Forsgren EVP, CFO, D EVP, CFO, D EVP, CFO, D
Cheryl W. Grise' SVP, S, GC SVP, S, GC SVP, S, GC
Robert G. Abair (3) VP, CAO
David B. Amerine
David H. Boguslawski VP
Michael H. Brothers
Gregory B. Butler
John T. Carlin
Bruce L. Drawbridge (4)
Stephen J. Fabiani VP, D
Barry Ilberman
John B. Keane VP VP
Mary Jo Keating
Robert J. Kost
Kerry J. Kuhlman (5) VP
Keith R. Marvin
David R. McHale VP, TRS VP, TRS VP, TRS
William J. Nadeau VP
Raymond P. Necci
John W. Noyes
Leon J. Olivier
Rodney O. Powell
John J. Roman VP, C VP, C
Frank C. Rothen
Frank P. Sabatino (6) VP
Gary D. Simon
John P. Stack
Lisa J. Thibdaue VP
Richard L. Tower
Dennis E. Welch VP VP
Roger C. Zaklukiewicz VP VP
Theresa H. Allsop
Thomas V. Foley
Patricia A. Wood C
H. Donald Burbank*
David S. Dayton*
Linda A. Jensen*
Thomas W. Philbin* VP, D
James B. Redden*
Ted C. Feigenbaum**
William T. Frain, Jr.***
Gary A. Long***
Paul E. Ramsey***
Robert A. Bersak***
John C. Collins (7)
Gerald Letendre (8)
Jane E. Newman (9)
A. John Stremlaw (10)
Alicia Burke (11)
Susan M. Burdick-Brennan (12)
WRC
Michael G. Morris P, CEO, D
Bruce D. Kenyon (1)
Hugh C. MacKenzie (2) D
John H. Forsgren EVP, CFO, D
Cheryl W. Grise' SVP, S, GC
Robert G. Abair (3)
David B. Amerine
David H. Boguslawski
Michael H. Brothers
Gregory B. Butler
John T. Carlin
Bruce L. Drawbridge (4)
Stephen J. Fabiani
Barry Ilberman
John B. Keane
Mary Jo Keating
Robert J. Kost
Kerry J. Kuhlman (5)
Keith R. Marvin
David R. McHale VP, TRS
William J. Nadeau
Raymond P. Necci
John W. Noyes
Leon J. Olivier
Rodney O. Powell
John J. Roman VP, C
Frank C. Rothen
Frank P. Sabatino (6)
Gary D. Simon
John P. Stack
Lisa J. Thibdaue
Richard L. Tower
Dennis E. Welch
Roger C. Zaklukiewicz
Theresa H. Allsop
Thomas V. Foley
Patricia A. Wood
H. Donald Burbank*
David S. Dayton*
Linda A. Jensen*
Thomas W. Philbin*
James B. Redden*
Ted C. Feigenbaum**
William T. Frain, Jr.***
Gary A. Long***
Paul E. Ramsey***
Robert A. Bersak***
John C. Collins (7)
Gerald Letendre (8)
Jane E. Newman (9)
A. John Stremlaw (10)
Alicia Burke (11) D
Susan M. Burdick-Brennan (12) D
The principal business address of the individuals listed above is 107 Selden
Street, Berlin, Connecticut 06037-1616, except for those individuals
designated by a single asterisk (*), whose principal business address is 24
Prime Parkway, Natick, Massachusetts 01760; a double asterisk (**), whose
principal business address is Lafayette Road, Seabrook, New Hampshire 03874;
and a triple asterisk (***), whose principal business address is 1000 Elm
Street, Manchester, New Hampshire 03101.
(1) Mr. Kenyon resigned as President-Nuclear Group and was elected President-
Generation Group of NU, CL&P, NUSCO, PSNH and WMECO, effective
March 1, 1999.
(2) Mr. MacKenzie resigned as President of WMECO effective April 1, 1999.
(3) Mr. Abair resigned from his positions effective April 1, 1999.
(4) Mr. Drawbridge resigned from his position effective January 15, 1999.
(5) Ms. Kuhlman resigned as Vice President-Customer Operations and was
elected a Director and President and Chief Operating Officer of WMECO
effective April 1, 1999.
(6) Mr. Sabatino resigned as Vice President-Wholesale Marketing and was
elected Senior Vice President-Power Marketing of NUSCO and Select,
effective April 4, 1999.
(7) Mr. Collins' principal business address is: The Hitchcock Clinic, One
Medical Center Drive, Lebanon, New Hampshire 03756.
(8) Mr. Letendre's principal business address is: Diamond Casting &
Machine Co., Inc., P.O. Box 420, Route 130, Hollis, New Hampshire
03049.
(9) Ms. Newman's principal business address is: The Commerce Group, One
Harbor Place, Suite 400, Portsmouth, New Hampshire 03801.
(10) Mr. Stremlaw's principal business address is: 242 Simcoe Street,
Niagra-on-the-Lake, Ontario Canada, L0S 1J0.
(11) Ms. Burke's principal business address is: AMACAR Group, 6707 Fairview
Road, Suite D, Charlotte, North Carolina 28210
(12) Ms. Burdick-Brennan's principal business address is: AMACAR Group, 6707
Fairview Road, Suite D, Charlotte, North Carolina 28210
(13) CL&P Capital is a partnership in which CL&P serves as general partner
and NUSCO serves as limited partner.
(14) On May 5, 1998, COE sold all of its issued and outstanding shares of
COE Tejona, a wholly-owned subsidiary of COE until such sale.
(15) HEC Southwest is a Delaware limited liability company, formed to be the
organizational entity for a joint venture between HEC Inc. and Arizona
Public Service Company.
KEY:
AVP - Assistant Vice President
C - Controller
CAO - Chief Administrative Officer
CEO - Chief Executive Officer
CFO - Chief Financial Officer
CIO - Chief Information Officer
CH - Chairman
CHB - Chairman of the Board
CH(E) - Chairman of the Executive Committee
CL - Clerk
COMP - Comptroller
CNO - Chief Nuclear Officer
D - Director
DS - Director of Services
EVP - Executive Vice President
ED - Executive Director
GC - General Counsel
P - President
PG - President - Generation Group
PN - President - Nuclear Group
PR - President - Retail Business Group
S - Secretary
SVP - Senior Vice President
T - Trustee
TRS - Treasurer
VP - Vice President
NU - Northeast Utilities
City and Suburban - The City and Suburban Electric and Gas Company
(CL&P Subsidiary)
CL&P - The Connecticut Light and Power Company
COE - Charter Oak Energy,Inc.
COE Argen II - COE Argentina II Corp. (Charter Oak Energy Subsidiary)
COE Ave Fenix - COE Ave Fenix Corporation (Charter Oak Energy
Subsidiary)
COE Develop - COE Development Corporation (Charter Oak Energy
Subsidiary)
COE Tejona - COE Tejona Corp. (Charter Oak Energy Subsidiary)
Conn Steam - The Connecticut Steam Company (CL&P Subsidiary)
Conn Trans - The Connecticut Transmission Corporation (CL&P
Subsidiary)
CRC - CL&P Receivables Corporation (CL&P Subsidiary)
EPI - Electric Power, Incorporated (CL&P Subsidiary)
HEC - HEC Inc.
HEC Canada - HEC Energy Consulting Canada Inc. (HEC Subsidiary)
HEC International - HEC International Corporation (HEC Subsidiary)
HEC Southwest - Southwest HEC Energy Services L.L.C.
HP&E - Holyoke Power and Electric Company (HWP Subsidiary)
HWP - Holyoke Water Power Company
Mode 1 - NU/Mode 1 Communications, Inc.
NAEC - North Atlantic Energy Corporation
NAESCO - North Atlantic Energy Service Corporation
NHEC - New Hampshire Electric Company
NNECO - Northeast Nuclear Energy Company
NUSCO - Northeast Utilities Service Company
Nutmeg Power - The Nutmeg Power Company (CL&P Subsidiary)
Properties, Inc. - Properties, Inc. (PSNH Subsidiary)
PSNH - Public Service Company of New Hampshire
Quinn. - The Quinnehtuk Company
Research Park - Research Park, Inc. (CL&P Subsidiary)
RRR - The Rocky River Realty Company
Select - Select Energy, Inc.
WMECO - Western Massachusetts Electric Company
WRC - WMECO Receivables Corporation (WMECO Subsidiary)
Part II. The following is a list of the officers, Directors and Trustees
who have financial connections within the provisions of Section
17(c) of the Act.
Name and Position
Name of Location of Held in Applicable
Officer Financial Financial Exemption
or Director Institution Institution Rule*
(1) (2) (3) (4)
John C. Collins Fleet Bank-NH Director B
Nashua, NH
Thomas V. Foley Hampden Savings Bank Trustee E
Springfield, MA
Jane E. Newman Exeter Trust Company Director B
Portsmouth, NH
* "A" designates Rule 70(b)(1), (2), (3) and (4);
"B" designates Rule 70(c)(1) and (2);
"C" designates Rule 70(d)(1), (2), (3) and (4);
"D" designates Rule 70(e)(1) and (2);
"E" designates Rule 70(f)(1) and (2); and
ITEM 6. OFFICERS AND DIRECTORS (Continued)
Part III. The information provided herein is applicable to all system
companies, except as indicated otherwise.
a. COMPENSATION OF TRUSTEES, DIRECTORS AND EXECUTIVE OFFICERS
Compensation of Trustees
During 1998, each Trustee who was not an employee of Northeast
Utilities or its subsidiaries was compensated at an annual rate of $17,000
cash plus 250 common shares of Northeast Utilities, and received $900 for
each meeting of the Board or its Committees attended. A non-employee
Trustee who participates in a meeting of the Board or any of its Committees
by conference telephone receives $675 per meeting. Also, a non-employee
Trustee who is asked by either the Board of Trustees or the Chairman of the
Board to perform extra services in the interest of the Northeast Utilities
system may receive additional compensation of $1,000 per day plus necessary
expenses. The Chairs of the Audit, the Compensation, the Corporate Affairs,
the Corporate Governance and the Nuclear Committees were compensated at an
additional annual rate of $3,500. In addition to the above compensation,
Dr. Kennan is paid at the annual rate of $30,000 for the extra services
performed as Lead Trustee. The Chair of the Nuclear Committee receives an
additional retainer at the rate of $25,000 per year. Dr. de Planque, Chair
of the Nuclear Committee, received a $25,000 payment in 1999 for the
services provided relative to being Chair of the Nuclear Committee in 1998.
Effective February 23, 1999, the annual retainer for a Trustee who is
not an employee of Northeast Utilities or its subsidiaries was increased to
$20,000 cash plus 500 common shares of Northeast Utilities and the $900
meeting fee was increased to $1,000.
Under the terms of the Northeast Utilities Incentive Plan (Incentive
Plan) adopted by shareholders at the 1998 Annual Meeting, in May 1998, each
non-employee Trustee automatically received an annual grant of options to
purchase 2,500 common shares of Northeast Utilities. Receipt of shares
acquired on exercise of these options may be deferred pursuant to the terms
of the Northeast Utilities Deferred Compensation Plan for Trustees.
In February, 1999, the Incentive Plan was amended to remove the fixed
grant of options each year and to allow non-employee Trustees to receive
stock-based grants to be specified from time to time. In February, 1999,
each non-employee Trustee was granted nonqualified options to purchase 2,500
common shares.
Prior to the beginning of each calendar year, each non-employee Trustee
may irrevocably elect to have all or any portion of the cash compensation
paid in the form of common shares of Northeast Utilities. Pursuant to the
Northeast Utilities Deferred Compensation Plan for Trustees, each Trustee
may also irrevocably elect to defer receipt of some or all cash and/or share
compensation.
Section 16(a) Beneficial Ownership Reporting Compliance
Section 16(a) of the Securities Exchange Act of 1934 requires Trustees
and certain officers of Northeast Utilities and persons who beneficially own
more than ten percent of the outstanding common shares of Northeast
Utilities to file reports of ownership and changes in ownership with the
Securities and Exchange Commission (SEC) and the New York Stock Exchange.
Based on review of copies of such forms furnished to Northeast Utilities, or
written representations that no Form 5 was required, Northeast Utilities
believes that for the year ended December 31, 1998, all such reporting
requirements were complied with in a timely manner.
[CAPTION]
<TABLE>
CL&P, PSNH, WMECO and NAEC SUMMARY COMPENSATION TABLE
The following tables present the cash and non-cash compensation received by the Chief Executive
Officer and the next four highest paid executive officers of CL&P, PSNH, WMECO and NAEC, in accordance
with rules of the Securities and Exchange Commission (SEC):
Annual Compensation Long-Term Compensation
Awards
Securities
Other Restricted Underlying
Annual Stock Options/
Compensa- Award(s) Stock
Name and tion ($) ($) Appreciation
Principal Position Year Salary ($) Bonus ($) (Note 1) (Note 2) Rights (#)
<S> <C> <C> <C> <C> <C> <C>
Michael G. Morris 1998 757,692 891,000 134,376 255,261 64,574
Chairman of the
Board, President 1997 258,333 1,350,000 - - 500,000
and Chief Executive
Officer 1996 - - - - -
Bruce D. Kenyon 1998 500,000 300,000 - - 21,236
President -
Nuclear Group 1997 500,000 300,000 - 306,522 139,745
1996 144,231 400,000 - 499,762 -
John H. Forsgren 1998 373,077 - - - 73,183
Executive Vice
President and 1997 350,000 - - 378,787 184,382
Chief Financial
Officer 1996 305,577 - 62,390 80,380 -
Hugh C. MacKenzie 1998 270,000 - - - 15,496
President - Retail
Business Group 1997 270,000 - - 189,778 142,549
1996 264,904 - - - -
Cheryl W. Grise' 1998 209,231 - - - 12,916
Senior Vice
President, 1997 200,000 - - 119,109 89,468
Secretary and
General Counsel 1996 200,000 - - - -
(in CL&P, PSNH and
WMECO tables only)
Ted C. Feigenbaum 1998 260,000 48,750 - 40,961 10,044
Executive Vice
President and 1997 260,000 30,119 - - -
Chief Nuclear Officer
of NAEC 1996 248,858 - - - -
(in NAEC table only)
</TABLE>
[CAPTION]
<TABLE>
Long-Term Compensation
Payouts
Long-Term All
Incentive Other
Program Compen-
Name and Payouts sation ($)
Principal Position Year ($) (Note 3)
<S> <C> <C> <C>
Michael G. Morris 1998 - 4,800
Chairman of the
Board, President 1997 - -
and Chief Executive
Officer 1996 - -
Bruce D. Kenyon 1998 - 4,800
President -
Nuclear Group 1997 - -
1996 - -
John H. Forsgren 1998 - 104,800
Executive Vice
President and 1997 - 50,000
Chief Financial
Officer 1996 - -
Hugh C. MacKenzie 1998 37,652 7,500
President - Retail
Business Group 1997 26,998 4,800
1996 19,834 7,500
Cheryl W. Grise' 1998 20,720 6,123
Senior Vice
President, 1997 15,188 4,800
Secretary and
General Counsel 1996 10,937 6,000
(in CL&P, PSNH and
WMECO tables only)
Ted C. Feigenbaum 1998 20,723 7,800
Executive Vice
President and 1997 21,498 4,800
Chief Nuclear Officer
of NAEC 1996 14,770 7,222
(in NAEC table only)
</TABLE>
[CAPTION]
<TABLE>
OPTION/SAR GRANTS IN LAST FISCAL YEAR
Individual Grants Grant Date Value
Number of
Securities % of Total
Underlying Options/SARs Grant Date
Options/SARs Granted to Exercise or Present
Granted (#) Employees Base Price Expiration Value ($)
Name (Note 4) in Fiscal Year ($/sh) Date (Note 4)
<S> <C> <C> <C> <C> <C>
Michael G. Morris 64,574 8.18% 16.3125 5/12/2008 255,417
Bruce D. Kenyon 21,236 2.69% 16.3125 5/12/2008 84,098
John H. Forsgren 73,183 9.28% 16.3125 5/12/2008 289,599
Hugh C. MacKenzie 15,496 1.96% 16.3125 5/12/2008 61,367
Cheryl W. Grise' 12,916 1.64% 16.3125 5/12/2008 51,150
Ted C. Feigenbaum 10,044 1.28% 16.3125 5/12/2008 39,776
</TABLE>
[CAPTION]
<TABLE>
FY-END OPTION/SAR VALUES
Number of Securities Value of Unexercised
Underlying Unexercised In-the-Money
Options/SARS Options/SARs
at Fiscal Year-End (#) at Fiscal Year-End ($)
Exercisable Unexercisable Exercisable Unexercisable
<S> <C> <C> <C> <C>
Michael G. Morris 21,524 543,050 0 3,187,500
Bruce D. Kenyon 7,079 150,919 0 442,445
John H. Forsgren 24,394 229,234 0 583,766
Hugh C. MacKenzie 5,166 149,836 0 451,323
Cheryl W. Grise' 4,306 96,167 0 283,260
Ted C. Feigenbaum 3,348 6,696 0 0
</TABLE>
Notes to Summary Compensation and Option/SAR Grants Tables:
1. Other annual compensation for Mr. Morris consists of 1998 relocation
expense reimbursements, and for Mr. Forsgren consists of 1996 tax payments
on a restricted stock award.
2. The aggregate restricted stock holdings by the five individuals named in
the table were, at December 31, 1998, 137,719 shares with a value of
$2,203,504 (CL&P, PSNH and WMECO) and 130,699 shares with a value of
$2,091,184 (NAEC). Awards shown for 1997 (except for additional awards
made for Messrs. Kenyon and Forsgren - see below) were restricted stock
unit grants under the Stock Price Recovery Incentive Program made on
January 1, 1997 and vested on January 4, 1999. Mr. Kenyon also received
12,200 Restricted Stock Units on July 8, 1997, with a value at date of
grant of $120,475, which will vest, as will the restricted shares granted
to him in 1996, when Millstone Station is removed from the Nuclear
Regulatory Commission's "watch list," provided that this occurs within
three years of Mr. Kenyon's commencement of employment (September 3, 1996)
and the Systematic Assessment of Licensee Performance and Institute of
Nuclear Power Operations ratings of Seabrook Station have not materially
changed from their 1996 levels, or, if earlier, when he is transferred to
a new position at the Company or an affiliate, as defined. Mr. Forsgren
also received 13,500 Restricted Stock Units on July 8, 1997, with a value
at grant of $133,313, which vested, as did the restricted stock granted
to him in 1996, on January 1, 1999. Any dividends paid on restricted stock
and units are reinvested into additional restricted stock and units,
respectively, subject to the same vesting schedule.
3. "All Other Compensation" consists of employer matching contributions
under the Northeast Utilities Service Company 401k Plan, generally
available to all eligible employees, special matching contributions
under the Northeast Utilities Deferred Compensation Plan for Executives
(Mr. Morris: $17,931, Mr. Kenyon: $10,000, Mr. MacKenzie: $2,700,
Mrs. Grise': $1,323, Mr. Feigenbaum: $3,000), and in the case of
Mr. Forsgren, retention payments ($100,000 in 1998, $50,000 in 1997).
4. These options were granted on May 12, 1998 under the Incentive Plan
(except for Mr. Morris's options, and 45,919 of Mr. Forsgren's options,
which were granted May 19, 1998). All options granted vest one-third on
grant date, one-third on May 12, 1999 and one-third on May 12, 2000.
Valued using the Black-Scholes option pricing model, with the following
assumptions: Volatility: 34.97 percent (36 months of monthly data);
Risk-free rate: 5.88 percent; Dividend yield: 5.54 percent (36 months of
monthly data); Exercise date: May 12, 2008.
PENSION BENEFITS
The following table shows the estimated annual retirement benefits
payable to an executive officer of Northeast Utilities upon retirement,
assuming that retirement occurs at age 65 and that the officer is at that
time not only eligible for a pension benefit under the Northeast Utilities
Service Company Retirement Plan (the Retirement Plan) but also eligible for
the make-whole benefit and the target benefit under the Supplemental
Executive Retirement Plan for Officers of Northeast Utilities System
Companies (the Supplemental Plan). The Supplemental Plan is a non-qualified
pension plan providing supplemental retirement income to system officers.
The make-whole benefit under the Supplemental Plan, available to all
officers, makes up for benefits lost through application of certain tax code
limitations on the benefits that may be provided under the Retirement Plan,
and includes as "compensation" awards under the executive incentive plans and
deferred compensation (as earned). The target benefit further supplements
these benefits and is available to officers at the Senior Vice President
level and higher who are selected by the Board of Trustees to participate in
the target benefit and who remain in the employ of Northeast Utilities
companies until at least age 60 (unless the Board of Trustees sets an earlier
age).
The benefits presented below are based on a straight life annuity
beginning at age 65 and do not take into account any reduction for joint and
survivorship annuity payments. Final average compensation for purposes of
calculating the target benefit is the highest average annual compensation of
the participant during any 36 consecutive months compensation was earned.
Compensation taken into account under the target benefit described above
includes salary, bonus, restricted stock awards, and long-term incentive
payouts shown in the Summary Compensation Table, but does not include
employer matching contributions under the 401k Plan. In the event that an
officer's employment terminates because of disability, the retirement
benefits shown above would be offset by the amount of any disability benefits
payable to the recipient that are attributable to contributions made by
Northeast Utilities and its subsidiaries under long term disability plans and
policies.
ANNUAL BENEFIT
Final Average Years of Credited Service
Compensation
15 20 25 30 35
$ 200,000 $ 72,000 $ 96,000 $120,000 $120,000 $120,000
250,000 90,000 120,000 150,000 150,000 150,000
300,000 108,000 144,000 180,000 180,000 180,000
350,000 126,000 168,000 210,000 210,000 210,000
400,000 144,000 192,000 240,000 240,000 240,000
450,000 162,000 216,000 270,000 270,000 270,000
500,000 180,000 240,000 300,000 300,000 300,000
600,000 216,000 288,000 360,000 360,000 360,000
700,000 252,000 336,000 420,000 420,000 420,000
800,000 288,000 384,000 480,000 480,000 480,000
900,000 324,000 432,000 540,000 540,000 540,000
1,000,000 360,000 480,000 600,000 600,000 600,000
1,100,000 396,000 528,000 660,000 660,000 660,000
1,200,000 432,000 576,000 720,000 720,000 720,000
Each of the executive officers of Northeast Utilities named in the
Summary Compensation Table is currently eligible for a target benefit, except
Messrs. Morris and Kenyon, whose Employment Agreements provide specially
calculated retirement benefits, based on their previous arrangements with CMS
Energy/Consumers Energy Company (CMS) and South Carolina Electric and Gas,
respectively. Mr. Morris's agreement provides that upon retirement after
reaching the fifth anniversary of his employment date with the Company (or
upon disability or termination without cause or following a change in
control, as defined, of the Company) he will be entitled to receive a special
retirement benefit calculated by applying the benefit formula of the CMS
Supplemental Executive Retirement Plan to all compensation earned from the
Company and to all service rendered to the Company and CMS. If Mr. Kenyon
retires with at least three years but less than five years of service with
the Company, he will be deemed to have five years of service for purpose of
his special retirement benefit, and if he retires with at least three years
of service with the Company, he will receive a lump sum payment of $500,000.
As of December 31, 1998, the five current executive officers named
in the Summary Compensation Table had the following years of credited service
for purposes of calculating target benefits under the Supplemental Plan (or
in the case of Messrs. Morris and Kenyon, for purposes of calculating the
special retirement benefits under their respective Employment Agreements):
Mr. Morris - 10, Mr. Kenyon - 2, Mr. Forsgren - 2, Mr. MacKenzie - 33, and
for CL&P, WMECO and PSNH, Mrs. Grise' - 18, and for NAEC, Mr. Feigenbaum - 12.
Assuming that retirement were to occur at age 65 for these officers,
retirement would occur with 23, 11, 15, 41, 37, and 29 years of credited
service, respectively.
EMPLOYMENT CONTRACTS AND TERMINATION OF EMPLOYMENT ARRANGEMENTS
Northeast Utilities Service Company (NUSCO) has entered into
employment agreements (the Officer Agreements) with each of the named
executive officers. The Officer Agreements are also binding on Northeast
Utilities and on each majority-owned subsidiary of Northeast Utilities.
Each Officer Agreement obligates the officer to perform such duties as
may be directed by the NUSCO Board of Directors or the Northeast Utilities
Board of Trustees, protect the Company's confidential information, and
refrain, while employed by the Company and for a period of time thereafter,
from competing with the Company in a specified geographic area. Each Officer
Agreement provides that the officer's base salary will not be reduced below
certain levels without the consent of the officer, and that the officer will
participate in specified benefits under the Supplemental Executive Retirement
Plan or other supplemental retirement programs (see Pension Benefits, above)
and/or in certain executive incentive programs at specified incentive
opportunity levels.
Each Officer Agreement provides for a specified employment term and
for automatic one-year extensions of the employment term unless at least six
months' notice of non-renewal is given by either party. The employment term
may also be ended by the Company for "cause," as defined, at any time (in
which case no supplemental retirement benefit, if any, shall be due), or by
the officer on thirty days' prior written notice for any reason. Absent
"cause," the Company may remove the officer from his or her position on sixty
days' prior written notice, but in the event the officer is so removed and
signs a release of all claims against the Company, the officer will receive
one or two years' base salary and annual incentive payments, specified
employee welfare and pension benefits, and vesting of stock appreciation
rights, options and restricted stock.
Under the terms of an Officer Agreement, upon any termination of
employment following a change of control, as defined, between (a) the earlier
of the date shareholders approve a change of control transaction or a change
of control transaction occurs and (b) the earlier of the date, if any, on
which the Board of Trustees abandons the transaction or the date two years
following the change of control, if the officer signs a release of all claims
against the Company the officer will be entitled to certain payments
including a multiple (not to exceed four) of annual base salary, annual
incentive payments, specified employee welfare and pension benefits, and
vesting of stock appreciation rights, options and restricted stock. Certain
of the change in control provisions may be modified by the Board of Trustees
prior to a change in control, on at least two years' notice to the affected
officer(s).
Besides the terms described above, the Officer Agreements of Messrs.
Morris, Kenyon, Forsgren and Feigenbaum provide for a specified salary, cash,
restricted stock and/or stock options upon employment, special incentive
programs and/or special retirement benefits. See Summary Compensation Table
and Pension Benefits, above, for further description of these provisions.
Mr. Kenyon's Officer Agreement also provides for a special short term
incentive compensation program in lieu of a portion of the Stock Price
Recovery Incentive Program. Under this special program Mr. Kenyon is
eligible to receive a payment up to 100 percent of base salary depending on
his fulfillment of certain incentive goals for each of the years ending
August 31, 1997 and August 31, 1998, and for the 16 month period ending
December 31, 1999.
The descriptions of the various agreements set forth above are for
purpose of disclosure in accordance with the proxy and other disclosure rules
of the SEC and shall not be controlling on any party; the actual terms of the
agreements themselves determine the rights and obligations of the parties.
b. SECURITY OWNERSHIP OF TRUSTEES, DIRECTORS AND EXECUTIVE OFFICERS
The following table provides information as of February 25, 1999, as
to the beneficial ownership of the equity securities of NU by each Trustee,
each of the five highest paid executive officers of NU and its subsidiaries,
and Directors and executive officers of system companies. Unless otherwise
noted, each Trustee, Director and executive officer has sole voting and
investment power with respect to the listed shares. No equity securities of
other system companies are owned by Trustees, Directors or executive
officers.
Title of Amount and Nature of Percent
Class Name Beneficial Ownership of Class (1)
NU Common Cotton Mather Cleveland 5,193
NU Common John C. Collins 0
NU Common William F. Conway 6,941 (2)(3)
NU Common E. Gail de Planque 4,531 (2)
NU Common Ted C. Feigenbaum 12,273 (4)
NU Common John H. Forsgren 43,995 (5)
NU Common William T. Frain, Jr. 11,503 (6)
NU Common Cheryl W. Grise' 22,008 (7)
NU Common Elizabeth T. Kennan 6,116 (2)
NU Common Bruce D. Kenyon 60,133 (8)
NU Common Gerald Letendre 0
NU Common Hugh C. MacKenzie 23,782 (9)
NU Common Michael G. Morris 72,566 (10)
NU Common Jane E. Newman 0
NU Common William J. Pape II 5,315 (2)
NU Common Robert E. Patricelli 9,286 (2)
NU Common John F. Swope 7,848 (2)
NU Common John F. Turner 3,038 (2)
(1) As of February 25, 1999 there were 137,120,486 common shares of NU
outstanding. The percentage of such shares beneficially owned by any
Director or Executive Officer, and by all Directors and Executive
Officers of CL&P, PSNH, WMECO and NAEC as a group, does not exceed
one percent.
(2) Includes 2,500 shares that could be acquired by the beneficial owner
pursuant to currently exercisable options.
(3) Mr. Conway shares investment and voting power with respect to 4,441
of these shares with his wife.
(4) These shares include 3,348 shares that could be acquired by Mr.
Feigenbaum pursuant to currently exercisable options. These shares
also include 3,596 restricted shares as to which Mr. Feigenbaum has
voting but no investment power.
(5) These shares include 24,394 shares that could be acquired by Mr.
Forsgren pursuant to currently exercisable options. These shares
also include 8,213 restricted shares as to which Mr. Forsgren has
voting but no investment power.
(6) These shares include 2,395 shares that could be acquired by Mr. Frain
pursuant to currently exercisable options. These shares also include
3,524 restricted shares as to which Mr. Frain has voting but no
investment power.
(7) Mrs. Grise' shares voting and investment power with respect to 259 of
these shares, which are held by her husband as custodian for their
minor children. These shares also include 4,306 shares that could be
acquired by Mrs. Grise' pursuant to currently exercisable options.
These shares also include 4,928 restricted shares as to which Mrs.
Grise' has voting but no investment power.
(8) These shares also include 7,079 shares that could be acquired by Mr.
Kenyon pursuant to currently exercisable options. These shares also
include 39,544 restricted shares as to which Mr. Kenyon has voting
but no investment power.
(9) These shares also include 5,166 shares that could be acquired by Mr.
MacKenzie pursuant to currently exercisable options. These shares
also include 4,928 restricted shares as to which Mr. MacKenzie has
voting but no investment power.
(10) Mr. Morris shares voting and investment power with respect to 1,333
of these shares with his wife. These shares also include 21,524 shares
that could be acquired by Mr. Morris pursuant to currently exercisable
options. These shares also include 34,100 restricted shares as to
which Mr. Morris has voting but no investment power.
C. CONTRACTS AND TRANSACTIONS OF TRUSTEES, DIRECTORS AND EXECUTIVE
OFFICERS WITH SYSTEM COMPANIES
This disclosure was included in the discussion of employment contracts
in Part III, Section (a) above.
d. INDEBTEDNESS OF TRUSTEES, DIRECTORS AND EXECUTIVE OFFICERS OF
SYSTEM COMPANIES
No Trustee, Director or executive officer was indebted to a system
company during 1998.
e. PARTICIPATION OF TRUSTEES, DIRECTORS AND EXECUTIVE OFFICERS IN
BONUS AND PROFIT-SHARING ARRANGEMENTS
This disclosure was included in the discussion of compensation in
Part III, Section (a) above.
f. RIGHTS TO INDEMNITY OF TRUSTEES, DIRECTORS AND EXECUTIVE
OFFICERS
No disclosures were made in any system company's most recent proxy
statement or annual report on Form 10-K with respect to the rights to
indemnity of Trustees, Directors or executive officers.
ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS
(1) Expenditures, disbursements and payments made during 1998 in
money, goods or services, directly or indirectly to or for the
account of any political party, candidate for public office or
holder of such office, or any committee or agent therefore were
made by system companies which file annual reports on Form
U-13-60 and, accordingly, will be appropriately disclosed
therein.
(2) The following expenditures, disbursements or payments were made
during 1998 to citizens groups or public relations counsel:
[CAPTION]
<TABLE>
Name of Total Purpose of Account
Name of System Company Ultimate Beneficiary Paid the Payment Charged
<S> <C>
Corporate Communications:
CL&P Weber-Merritt $20,236 Public Relations 426.54
PSNH Firth Associates, Inc. $64,492 Public Relations 426.54
</TABLE>
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS
PART I:
1. In 1998, HEC Inc. provided the following energy management and/or
demand-side management services to one or more system companies,
as authorized by prior Commission orders under the Act:
Company
Serving Receiving
Transaction Company Benefit Compensation
Various demand
side management
services HEC Inc. PSNH $ - *
Various demand
side management
services HEC Inc. CL&P $ 2,084,068
Various energy
management
services HEC Inc. WMECO $ 432,607
*Prior year's reported compensation in the 1997 Form U5S was
$16,842. In 1998, HEC Inc. recorded a prior year adjustment
in the amount of ($981), reducing the amount reported in 1997
to $15,861.
2. In 1998, PSNH rendered the following services to NAESCO:
Description of Service Amount
(Thousands of Dollars)
Worker Compensation Costs $61
Electrical Maintenance Services 41
Vehicle Lease Charges 23
Mechanical Maintenance Services 18
Legal Services 8
Accounting Services 4
Miscellaneous Services 8
3. In 1998, the following revenues were received from NAESCO in
connection with leasing PSNH assets.
(Thousands of Dollars)
Newington station building
and outside storage $195**
**Includes operation and maintenance charges and property taxes
associated with leased property.
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
PART II:
See Item 6, Part III(c).
PART III:
None to be reported.
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES
1(a) Identification of Company:
1. Company: Ave Fenix Energia S.A.
2. Location: Av. Leandro N. Alen 1110
1001 Buenos Aires, Argentina
3. Business address: Same
4. Description: An Argentinean company whose sole
purpose is to own and operate the
Ave Fenix Facility. The Facility
is a 168 MW simple cycle natural
gas combustion turbine and associated
electrical and natural gas
interconnection equipment located in
Tucuman Province, Argentina. The
project commenced operations in
October of 1996.
5. System company
that holds interest: COE Ave Fenix Corporation, a
Connecticut corporation.
6. EWG or FUCO: FUCO
(b) Capital investment in company by NU, direct or indirect:
1. Type: Capital contribution (12/31/98)
2. Amount: $51 million
3. Debt: None
4. Other financial obligations with recourse to NU or another
system company: None
5. Guarantees by NU: $12.5 million
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
12/31/98:
Ratio of debt to common equity as of 12/31/98: 0.958
Ratio of debt to earnings/(loss) as of 12/31/98: (5.267)
(d) Service, Sales, or Construction Contracts: None
PART II.
An organizational chart showing the relationship of the foreign utility
company to other NU system companies is provided as Exhibit H.
Required financial data is provided as Exhibit I.
PART III.
(a) NU's aggregate investment in EWGs and FUCOs, respectively, as
of 12/31/98:
EWGs: $ 0.0 million
FUCOs: $(1.3) million
(b) Ratio of aggregate investment to aggregate retained earnings of
NU's public-utility subsidiary companies as of 12/31/98: (0.002)
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS
Page
Financial Statements filed pursuant to the Public Utility
Holding Company Act of 1935
Report of Independent Public Accountants F-1
Signature F-2
Financial Statements
Northeast Utilities and Subsidiaries:
Consolidating Balance Sheet as of December 31, 1998 F-4--F-7
Consolidating Statement of Income for year ended
December 31, 1998 F-8--F-9
Consolidating Statement of Retained Earnings for
year ended December 31, 1998 F-10--F-11
Consolidating Statement of Capital Surplus,
Paid In for the year ended December 31, 1998 F-10--F-11
Consolidating Statement of Cash Flows for year
ended December 31, 1998 F-12--F-13
The Connecticut Light and Power Company and Subsidiaries:
Consolidating Balance Sheet as of December 31, 1998 F-14--F-15
Consolidating Statement of Income for year ended
December 31, 1998 F-16
Consolidating Statement of Retained Earnings for
year ended December 31, 1998 F-17
Consolidating Statement of Capital Surplus, Paid
In for the year ended December 31, 1998 F-17
Consolidating Statement of Cash Flows for year
ended December 31, 1998 F-18
Public Service Company of New Hampshire and Subsidiary:
Consolidating Balance Sheet as of December 31, 1998 F-20--F-21
Consolidating Statement of Income for year ended
December 31, 1998 F-22
Consolidating Statement of Retained Earnings for year
ended December 31, 1998 F-23
Consolidating Statement of Capital Surplus,
Paid In for the year ended December 31, 1998 F-23
Consolidating Statement of Cash Flows for year
ended December 31, 1998 F-24
Holyoke Water Power Company and Subsidiary:
Consolidating Balance Sheet as of December 31, 1998 F-26--F-27
Consolidating Statement of Income for year ended
December 31, 1998 F-28
Consolidating Statement of Retained Earnings for
year ended December 31, 1998 F-29
Consolidating Statement of Capital Surplus,
Paid In for the year ended December 31, 1998 F-29
Consolidating Statement of Cash Flows for year
ended December 31, 1998 F-30
Charter Oak Energy Inc. and Subsidiaries:
Consolidating Balance Sheet as of December 31, 1998 F-32--F-35
Consolidating Statement of Income for year ended
December 31, 1998 F-36--F-37
Consolidating Statement of Retained Earnings for
year ended December 31, 1998 F-38--F-39
Consolidating Statement of Capital Surplus,
Paid In for the year ended December 31, 1998 F-38--F-39
Consolidating Statement of Cash Flows for
year ended December 31, 1998 F-40--F-41
HEC Inc. and Subsidiaries:
Consolidating Balance Sheet as of December 31, 1998 F-42--F-43
Consolidating Statement of Income for the year ended
December 31, 1998 F-44
Consolidating Statement of Retained Earnings for the year
ended December 31, 1998 F-45
Consolidating Statement of Capital Surplus,
Paid In for the year ended December 31, 1998 F-45
Consolidating Statement of Cash Flows for the
year ended December 31, 1998 F-46
Western Massachusetts Electric Company and Subsidiary:
Consolidating Balance Sheet as of December 31, 1998 F-47--F-48
Consolidating Statement of Income for the year
ended December 31, 1998 F-49
Consolidating Statement of Retained Earnings for the
year ended December 31, 1998 F-50
Consolidating Statement of Capital Surplus,
Paid In for the year ended December 31, 1998 F-50
Consolidating Statement of Cash Flows for the year
ended December 31, 1998 F-51
Notes to Financial Statements F-52
Exhibits E-1--E-23
* H. Organizational chart showing the relationship of Ave Fenix
Energia S. A., foreign utility company, to other
NU system companies.
* I. 1998 financial reports of the following foreign utility
company:
- Ave Fenix Energia S.A.
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Northeast Utilities and Subsidiaries:
We have audited the consolidated balance sheets and consolidated statements
of capitalization of Northeast Utilities and Subsidiaries (a Massachusetts
trust) and subsidiaries as of December 31, 1998 and 1997, and the related
consolidated statements of income, comprehensive income, common shareholders'
equity, cash flows, and income taxes for each of the three years in the
period ended December 31, 1998, included in the 1998 annual report to
shareholders and incorporated by reference in this Form U5S, and have issued
our report thereon dated February 23, 1999. These financial statements are
the responsibility of the company's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Northeast Utilities and
subsidiaries as of December 31, 1998 and 1997, and the results of their
operations and cash flows for each of the three years in the period ended
December 31, 1998, in conformity with generally accepted accounting principles.
/s/ Arthur Andersen LLP
Arthur Andersen LLP
Hartford, Connecticut
February 23, 1999
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
April 27, 1999
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
The
Connecticut Public Service
Light and Company of
Northeast Power Company New Hampshire
Utilities (consolidated) (consolidated)
(parent) (b) (b)
----------- -------------- --------------
<S> <C> <C> <C>
Utility Plant, at cost:
Electric $ 0 $6,173,871 $1,927,541
Other 0 0 8,588
----------- -------------- --------------
0 6,173,871 1,936,129
Less: Accumulated provision for
depreciation 0 2,758,012 634,061
----------- -------------- --------------
0 3,415,859 1,302,068
Unamortized PSNH acquisition costs 0 0 352,855
Construction work in progress 1 83,477 20,735
Nuclear fuel, net 0 87,867 1,323
----------- -------------- --------------
Total net utility plant 1 3,587,203 1,676,981
----------- -------------- --------------
Other Property and Investments:
Nuclear decommissioning trusts, at market 0 452,755 5,580
Investments in regional nuclear generating
companies, at equity 0 56,999 13,352
Investments in transmission companies, at
equity 17,692 0 0
Investments in subsidiary companies, at
equity 2,161,901 0 0
Other, at cost 67 93,864 4,570
----------- -------------- --------------
2,179,660 603,618 23,502
----------- -------------- --------------
Current Assets:
Cash and cash equivalents 0 434 61,716
Special deposits 0 0 0
Investments in securitizable assets 0 160,253 0
Notes receivable from affiliated companies 34,400 6,600 0
Receivables, net 723 22,186 89,047
Accounts receivable from affiliated companies 1,033 1,721 11,467
Taxes receivables 7,969 26,478 964
Accrued utility revenues 0 0 42,145
Fuel, materials, and supplies, at average cost 0 71,982 36,642
Recoverable energy costs, net--current portion 0 0 65,257
Prepayments and other 96 121,514 21,812
----------- -------------- --------------
44,221 411,168 329,050
----------- -------------- --------------
Deferred Charges:
Regulatory assets 0 1,415,838 610,222
Accumulated deferred income taxes 5,236 0 0
Unamortized debt expense 101 19,603 13,995
Deferred receivable from affiliated company 0 0 22,728
Other 255 12,768 5,510
----------- -------------- --------------
5,592 1,448,209 652,455
----------- -------------- --------------
Total Assets $2,229,474 $6,050,198 $2,681,988
=========== ============== ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Western
Massachusetts Holyoke
Electric Water Power
Company North Atlantic Company
(consolidated) Energy (consolidated)
(b) Corporation (b)
-------------- -------------- --------------
<S> <C> <C> <C>
Utility Plant, at cost:
Electric $1,221,257 $753,379 $97,288
Other 0 0 0
-------------- -------------- --------------
1,221,257 753,379 97,288
Less: Accumulated provision for
depreciation 517,401 165,114 45,018
-------------- -------------- --------------
703,856 588,265 52,270
Unamortized PSNH acquisition costs 0 0 0
Construction work in progress 14,858 7,090 3,142
Nuclear fuel, net 19,931 23,644 0
-------------- -------------- --------------
Total net utility plant 738,645 618,999 55,412
-------------- -------------- --------------
Other Property and Investments:
Nuclear decommissioning trusts, at market 125,598 35,210 0
Investments in regional nuclear generating
companies, at equity 15,440 0 0
Investments in transmission companies, at
equity 0 0 0
Investments in subsidiary companies, at
equity 0 0 0
Other, at cost 7,322 0 3,476
-------------- -------------- --------------
148,360 35,210 3,476
-------------- -------------- --------------
Current Assets:
Cash and cash equivalents 106 71 3,655
Special deposits 0 11,198 0
Investments in securitizable assets 21,865 0 0
Notes receivable from affiliated companies 0 30,350 10,100
Receivables, net 862 0 2,744
Accounts receivable from affiliated companies 4,188 23,804 90
Taxes receivables 14,255 7,887 200
Accrued utility revenues 0 0 0
Fuel, materials, and supplies, at average cost 5,053 12,812 6,727
Recoverable energy costs, net--current portion 1,924 0 0
Prepayments and other 23,996 2,198 219
-------------- -------------- --------------
72,249 88,320 23,735
-------------- -------------- --------------
Deferred Charges:
Regulatory assets 322,435 199,882 1,356
Accumulated deferred income taxes 0 0 0
Unamortized debt expense 2,298 2,742 843
Deferred receivable from affiliated company 0 0 0
Other 3,695 0 373
-------------- -------------- --------------
328,428 202,624 2,572
-------------- -------------- --------------
Total Assets $1,287,682 $945,153 $85,195
============== ============== ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral art of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Northeast Northeast
Utilities Nuclear North Atlantic
Service Energy Energy Service
Company Company Corporation
--------- --------- --------------
<S> <C> <C> <C>
Utility Plant, at cost:
Electric $ 0 $ 47,418 $ 0
Other 93,857 0 0
--------- --------- --------------
93,857 47,418 0
Less: Accumulated provision for
depreciation 63,290 14,527 0
--------- --------- --------------
30,567 32,891 0
Unamortized PSNH acquisition costs 0 0 0
Construction work in progress 5,871 6,199 0
Nuclear fuel, net 0 646 0
--------- --------- --------------
Total net utility plant 36,438 39,736 0
--------- --------- --------------
Other Property and Investments:
Nuclear decommissioning trusts, at market 0 0 0
Investments in regional nuclear generating
companies, at equity 0 0 0
Investments in transmission companies, at
equity 0 0 0
Investments in subsidiary companies, at
equity 0 0 0
Other, at cost 4,881 0 680
--------- --------- --------------
4,881 0 680
--------- --------- --------------
Current Assets:
Cash and cash equivalents 64,333 778 1,815
Special deposits 0 0 0
Investments in securitizable assets 0 0 0
Notes receivable from affiliated companies 53,850 25,900 0
Receivables, net 75,855 3,742 14,160
Accounts receivable from affiliated companies 4,693 45,789 12
Taxes receivables 0 0 0
Accrued utility revenues 0 0 0
Fuel, materials, and supplies, at average cost 639 68,781 24
Recoverable energy costs, net--current portion 0 0 0
Prepayments and other 2,607 1,675 1,221
--------- --------- --------------
201,977 146,665 17,232
--------- --------- --------------
Deferred Charges:
Regulatory assets 0 0 7
Accumulated deferred income taxes 15,366 24,503 0
Unamortized debt expense 0 87 0
Deferred receivable from affiliated company 0 0 0
Other 37,851 10,516 26,762
--------- --------- --------------
53,217 35,106 26,769
--------- --------- --------------
Total Assets $296,513 $221,507 $44,681
========= ========= ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral art of these financial satements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Charter Oak
The The Rocky Energy, Inc.
Quinnehtuk River Realty (consolidated)
Company Company (b)
---------- ------------ --------------
<S> <C> <C> <C>
Utility Plant, at cost:
Electric $ 0 $ 0 $ 51
Other 1,842 86,746 0
---------- ------------ --------------
1,842 86,746 51
Less: Accumulated provision for
depreciation 1,263 31,391 51
---------- ------------ --------------
579 55,355 0
Unamortized PSNH acquisition costs 0 0 0
Construction work in progress 0 655 7
Nuclear fuel, net 0 0 0
---------- ------------ --------------
Total net utility plant 579 56,010 7
---------- ------------ --------------
Other Property and Investments:
Nuclear decommissioning trusts, at market 0 0 0
Investments in regional nuclear generating
companies, at equity 0 0 0
Investments in transmission companies, at
equity 0 0 0
Investments in subsidiary companies, at
equity 0 0 0
Other, at cost 2,977 2,500 0
---------- ------------ --------------
2,977 2,500 0
---------- ------------ --------------
Current Assets:
Cash and cash equivalents 78 71 755
Special deposits 0 0 0
Investments in securitizable assets 0 0 0
Notes receivable from affiliated companies 0 0 0
Receivables, net 0 9 208
Accounts receivable from affiliated companies 0 639 0
Taxes receivables 138 0 2,915
Accrued utility revenues 0 0 0
Fuel, materials, and supplies, at average cost 0 0 0
Recoverable energy costs, net--current portion 0 0 0
Prepayments and other 0 552 6,178
---------- ------------ --------------
216 1,271 10,056
---------- ------------ --------------
Deferred Charges:
Regulatory assets 4 0 0
Accumulated deferred income taxes 0 0 1,898
Unamortized debt expense 0 63 0
Deferred receivable from affiliated company 0 0 0
Other 0 0 223
---------- ------------ --------------
4 63 2,121
---------- ------------ --------------
Total Assets $3,776 $59,844 $12,184
========== ============ ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Select Mode 1 HEC Inc.
Energy, Communications, (consolidated)
Inc. Inc. (b)
---------- --------------- --------------
<S> <C> <C> <C>
Utility Plant, at cost:
Electric $ 0 $ 77 $ 0
Other 0 0 4,292
---------- --------------- --------------
0 77 4,292
Less: Accumulated provision for
depreciation 0 0 3,013
---------- --------------- --------------
0 77 1,279
Unamortized PSNH acquisition costs 0 0 0
Construction work in progress 1,096 29 0
Nuclear fuel, net 0 0 0
---------- --------------- --------------
Total net utility plant 1,096 106 1,279
---------- --------------- --------------
Other Property and Investments:
Nuclear decommissioning trusts, at market 0 0 0
Investments in regional nuclear generating
companies, at equity 0 0 0
Investments in transmission companies, at
equity 0 0 0
Investments in subsidiary companies, at
equity 0 0 0
Other, at cost 2,647 13,829 0
---------- --------------- --------------
2,647 13,829 0
---------- --------------- --------------
Current Assets:
Cash and cash equivalents 1 1,917 425
Special deposits 0 0 0
Investments in securitizable assets 0 0 0
Notes receivable from affiliated companies 0 0 0
Receivables, net 25,011 0 2,868
Accounts receivable from affiliated companies 0 0 796
Taxes receivables 9,337 474 0
Accrued utility revenues 0 0 0
Fuel, materials, and supplies, at average cost 0 0 0
Recoverable energy costs, net--current portion 0 0 0
Prepayments and other 0 0 144
---------- --------------- --------------
34,349 2,391 4,233
---------- --------------- --------------
Deferred Charges:
Regulatory assets 0 0 0
Accumulated deferred income taxes 70 0 0
Unamortized debt expense 683 0 0
Deferred receivable from affiliated company 0 0 0
Other (1) 32 1,923
---------- --------------- --------------
752 32 1,923
---------- --------------- --------------
Total Assets $38,844 $16,358 $7,435
========== =============== ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Eliminations Consolidated
------------ ------------
<S> <C> <C>
Utility Plant, at cost:
Electric $ 650,336 $ 9,570,547
Other 0 195,325
------------ ------------
650,336 9,765,872
Less: Accumulated provision for
depreciation 8,725 4,224,416
------------ ------------
641,611 5,541,456
Unamortized PSNH acquisition costs 0 352,855
Construction work in progress 0 143,159
Nuclear fuel, net 0 133,411
------------ ------------
Total net utility plant 641,611 6,170,881
------------ ------------
Other Property and Investments:
Nuclear decommissioning trusts, at market 0 619,143
Investments in regional nuclear generating
companies, at equity 0 85,791
Investments in transmission companies, at
equity 0 17,692
Investments in subsidiary companies, at
equity 2,161,901 0
Other, at cost 0 136,812
------------ ------------
2,161,901 859,438
------------ ------------
Current Assets:
Cash and cash equivalents 0 136,155
Special deposits 11,198 0
Investments in securitizable assets 0 182,118
Notes receivable from affiliated companies 161,200 0
Receivables, net 208 237,207
Accounts receivable from affiliated companies 94,232 0
Taxes receivables 70,617 0
Accrued utility revenues 0 42,145
Fuel, materials, and supplies, at average cost 0 202,661
Recoverable energy costs, net--current portion 0 67,181
Prepayments and other 116,772 65,440
------------ ------------
454,227 932,907
------------ ------------
Deferred Charges:
Regulatory assets 220,795 2,328,949
Accumulated deferred income taxes 47,073 0
Unamortized debt expense 0 40,416
Deferred receivable from affiliated company 22,728 0
Other 45,117 54,790
------------ ------------
335,713 2,424,155
------------ ------------
Total Assets $3,593,452 $10,387,381
============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
The
Connecticut Public Service
Light and Company of
Northeast Power Company New Hampshire
Utilities (consolidated) (consolidated)
(parent) (b) (b)
----------- -------------- --------------
<S> <C> <C> <C>
Capitalization:
Common shareholders' equity:
Common shares $ 685,156 $ 122,229 $ 1
Capital surplus, paid in 940,661 664,156 424,250
Deferred benefit plan-employee stock
ownership plan (140,619) 0 0
Retained earnings 560,769 210,108 252,912
Accumulated other comprehensive income 1,405 378 1,004
----------- -------------- --------------
Total common shareholders' equity 2,047,372 996,871 678,167
Preferred stock not subject to mandatory
redemption 0 116,200 0
Preferred stock subject to mandatory
redemption 0 99,539 50,000
Long-term debt 158,000 1,793,952 516,485
----------- -------------- --------------
Total capitalization 2,205,372 3,006,562 1,244,652
----------- -------------- --------------
Minority Interest in Consolidated Subsidiary 0 100,000 0
----------- -------------- --------------
Obligations Under Capital Leases 0 68,444 703,411
----------- -------------- --------------
Current Liabilities:
Notes payable to banks 0 10,000 0
Notes payable to affiliated company 0 0 0
Long-term debt and preferred stock--current
portion 19,000 233,755 25,000
Obligations under capital leases--current
portion 0 94,440 138,812
Accounts payable 714 121,040 26,227
Accounts payable to affiliated companies 1,882 32,758 28,256
Accrued taxes 15 19,396 83,068
Accrued interest 2,097 31,409 5,894
Accrued pension benefits 0 0 46,004
Other 0 34,872 8,540
----------- -------------- --------------
23,708 577,670 361,801
----------- -------------- --------------
Deferred Credits:
Accumulated deferred income taxes 0 1,194,722 225,313
Accumulated deferred investment tax credits 0 114,457 3,460
Deferred contractual obligations 0 277,826 66,400
Decommissioning obligation--Millstone 1 0 560,500 0
Deferred obligation to affiliated company 0 0 22,728
Deferred credit--SFAS 109 0 0 0
Other 394 150,017 54,223
----------- -------------- --------------
394 2,297,522 372,124
----------- -------------- --------------
Total Capitalization and Liabilities $2,229,474 $6,050,198 $2,681,988
=========== ============== ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Western
Massachusetts Holyoke
Electric Water Power
Company North Atlantic Company
(consolidated) Energy (consolidated)
(b) Corporation (b)
-------------- -------------- --------------
<S> <C> <C> <C>
Capitalization:
Common shareholders' equity:
Common shares $ 26,812 1 $ 2,400
Capital surplus, paid in 151,431 $160,999 6,000
Deferred benefit plan-employee stock
ownership plan 0 0 0
Retained earnings 46,003 43,196 13,592
Accumulated other comprehensive income 150 0 (5)
-------------- -------------- --------------
Total common shareholders' equity 224,396 204,196 21,987
Preferred stock not subject to mandatory
redemption 20,000 0 0
Preferred stock subject to mandatory
redemption 18,000 0 0
Long-term debt 349,314 405,000 38,300
-------------- -------------- --------------
Total capitalization 611,710 609,196 60,287
-------------- -------------- --------------
Minority Interest in Consolidated Subsidiary 0 0 0
-------------- -------------- --------------
Obligations Under Capital Leases 12,129 0 0
-------------- -------------- --------------
Current Liabilities:
Notes payable to banks 20,000 0 0
Notes payable to affiliated company 30,900 0 0
Long-term debt and preferred stock--current
portion 41,500 70,000 0
Obligations under capital leases--current
portion 21,964 0 0
Accounts payable 17,952 5,924 2,063
Accounts payable to affiliated companies 12,866 867 192
Accrued taxes 1,264 710 2,667
Accrued interest 8,030 2,987 314
Accrued pension benefits 0 0 304
Other 6,831 285 254
-------------- -------------- --------------
161,307 80,773 5,794
-------------- -------------- --------------
Deferred Credits:
Accumulated deferred income taxes 248,985 209,634 11,583
Accumulated deferred investment tax credits 21,895 0 2,446
Deferred contractual obligations 74,534 0 0
Decommissioning obligation--Millstone 1 131,500 0 0
Deferred obligation to affiliated company 0 22,728 0
Deferred credit--SFAS 109 0 0 0
Other 25,622 22,822 5,085
-------------- -------------- --------------
502,536 255,184 19,114
-------------- -------------- --------------
Total Capitalization and Liabilities $1,287,682 $945,153 $85,195
============== ============== ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Northeast Northeast
Utilities Nuclear North Atlantic
Service Energy Energy Service
Company Company Corporation
--------- --------- --------------
<S> <C> <C> <C>
Capitalization:
Common shareholders' equity:
Common shares $ 0 $ 15 $ 1
Capital surplus, paid in 1 15,350 9
Deferred benefit plan-employee stock
ownership plan 0 0 0
Retained earnings 0 923 2
Accumulated other comprehensive income 0 (121) 0
--------- --------- --------------
Total common shareholders' equity 1 16,167 12
Preferred stock not subject to mandatory
redemption 0 0 0
Preferred stock subject to mandatory
redemption 0 0 0
Long-term debt 0 6,011 0
--------- --------- --------------
Total capitalization 1 22,178 12
--------- --------- --------------
Minority Interest in Consolidated Subsidiary 0 0 0
--------- --------- --------------
Obligations Under Capital Leases 0 4,820 0
--------- --------- --------------
Current Liabilities:
Notes payable to banks 0 0 0
Notes payable to affiliated company 107,350 0 0
Long-term debt and preferred stock--current
portion 0 6,011 0
Obligations under capital leases--current
portion 0 3,447 0
Accounts payable 78,739 48,667 9,523
Accounts payable to affiliated companies 5,124 2,089 1,894
Accrued taxes 3,987 11,534 594
Accrued interest 2 0 0
Accrued pension benefits 12,356 42,075 23,144
Other 18,531 62,245 4,944
--------- --------- --------------
226,089 176,068 40,099
--------- --------- --------------
Deferred Credits:
Accumulated deferred income taxes 0 0 199
Accumulated deferred investment tax credits 0 1,111 0
Deferred contractual obligations 0 0 0
Decommissioning obligation--Millstone 1 0 0 0
Deferred obligation to affiliated company 0 0 0
Deferred credit--SFAS 109 4,223 9,452 0
Other 66,200 7,878 4,371
--------- --------- --------------
70,423 18,441 4,570
--------- --------- --------------
Total Capitalization and Liabilities $296,513 $221,507 $44,681
========= ========= ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Charter Oak
The The Rocky Energy, Inc.
Quinnehtuk River Realty (consolidated)
Company Company (b)
---------- ------------ --------------
<S> <C> <C> <C>
Capitalization:
Common shareholders' equity:
Common shares $ 350 $ 10 0
Capital surplus, paid in 155 0 $ 92,744
Deferred benefit plan-employee stock
ownership plan 0 0 0
Retained earnings (2,727) 674 (83,204)
Accumulated other comprehensive income 0 0 0
---------- ------------ --------------
Total common shareholders' equity (2,222) 684 9,540
Preferred stock not subject to mandatory
redemption 0 0 0
Preferred stock subject to mandatory
redemption 0 0 0
Long-term debt 0 14,551 0
---------- ------------ --------------
Total capitalization (2,222) 15,235 9,540
---------- ------------ --------------
Minority Interest in Consolidated Subsidiary 0 0 0
---------- ------------ --------------
Obligations Under Capital Leases 0 0 0
---------- ------------ --------------
Current Liabilities:
Notes payable to banks 0 0 0
Notes payable to affiliated company 5,900 16,050 0
Long-term debt and preferred stock--current
portion 0 1,887 0
Obligations under capital leases--current
portion 0 0 0
Accounts payable 0 0 299
Accounts payable to affiliated companies 43 394 30
Accrued taxes 0 12 0
Accrued interest 0 300 0
Accrued pension benefits 0 0 0
Other 0 1,311 2,301
---------- ------------ --------------
5,943 19,954 2,630
---------- ------------ --------------
Deferred Credits:
Accumulated deferred income taxes 23 1,328 0
Accumulated deferred investment tax credits 0 0 0
Deferred contractual obligations 0 0 0
Decommissioning obligation--Millstone 1 0 0 0
Deferred obligation to affiliated company 0 0 0
Deferred credit--SFAS 109 0 0 0
Other 32 23,327 14
---------- ------------ --------------
55 24,655 14
---------- ------------ --------------
Total Capitalization and Liabilities $ 3,776 $59,844 $ 12,184
========== ============ ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Select Mode 1 HEC Inc.
Energy, Communications, (consolidated)
Inc. Inc. (b)
---------- --------------- --------------
<S> <C> <C> <C>
Capitalization:
Common shareholders' equity:
Common shares $ 0 0 $ 0
Capital surplus, paid in 21,051 $16,157 4,000
Deferred benefit plan-employee stock
ownership plan 0 0 0
Retained earnings (16,254) (3,694) (562)
Accumulated other comprehensive income 0 0 (1)
---------- --------------- --------------
Total common shareholders' equity 4,797 12,463 3,437
Preferred stock not subject to mandatory
redemption 0 0 0
Preferred stock subject to mandatory
redemption 0 0 0
Long-term debt 0 0 525
---------- --------------- --------------
Total capitalization 4,797 12,463 3,962
---------- --------------- --------------
Minority Interest in Consolidated Subsidiary 0 0 0
---------- --------------- --------------
Obligations Under Capital Leases 0 0 0
---------- --------------- --------------
Current Liabilities:
Notes payable to banks 0 0 0
Notes payable to affiliated company 0 0 1,000
Long-term debt and preferred stock--current
portion 0 0 0
Obligations under capital leases--current
portion 0 0 0
Accounts payable 26,151 0 1,521
Accounts payable to affiliated companies 7,778 3 55
Accrued taxes 0 0 221
Accrued interest 11 0 0
Accrued pension benefits 0 0 0
Other 107 0 588
---------- --------------- --------------
34,047 3 3,385
---------- --------------- --------------
Deferred Credits:
Accumulated deferred income taxes 0 3,892 88
Accumulated deferred investment tax credits 0 0 0
Deferred contractual obligations 0 0 0
Decommissioning obligation--Millstone 1 0 0 0
Deferred obligation to affiliated company 0 0 0
Deferred credit--SFAS 109 0 0 0
Other 0 0 0
---------- --------------- --------------
0 3,892 88
---------- --------------- --------------
Total Capitalization and Liabilities $ 38,844 $16,358 $7,435
========== =============== ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Eliminations Consolidated
------------ ------------
<S> <C> <C>
Capitalization:
Common shareholders' equity:
Common shares $ 151,819 $ 685,156
Capital surplus, paid in 1,556,302 940,661
Deferred benefit plan-employee stock
ownership plan 0 (140,619)
Retained earnings 460,970 560,769
Accumulated other comprehensive income 1,405 1,405
------------ ------------
Total common shareholders' equity 2,170,496 2,047,372
Preferred stock not subject to mandatory
redemption 0 136,200
Preferred stock subject to mandatory
redemption 0 167,539
Long-term debt 0 3,282,138
------------ ------------
Total capitalization 2,170,496 5,633,249
------------ ------------
Minority Interest in Consolidated Subsidiary 0 100,000
------------ ------------
Obligations Under Capital Leases 700,381 88,423
------------ ------------
Current Liabilities:
Notes payable to banks 0 30,000
Notes payable to affiliated company 161,200 0
Long-term debt and preferred stock--current
portion 0 397,153
Obligations under capital leases--current
portion 137,807 120,856
Accounts payable 208 338,612
Accounts payable to affiliated companies 94,231 0
Accrued taxes 72,712 50,755
Accrued interest 0 51,044
Accrued pension benefits 90,849 33,034
Other 34,477 106,333
------------ ------------
591,484 1,127,787
------------ ------------
Deferred Credits:
Accumulated deferred income taxes 47,073 1,848,694
Accumulated deferred investment tax credits 0 143,369
Deferred contractual obligations 0 418,760
Decommissioning obligation--Millstone 1 0 692,000
Deferred obligation to affiliated company 22,728 22,728
Deferred credit--SFAS 109 13,675 0
Other 47,615 312,371
------------ ------------
131,091 3,437,922
------------ ------------
Total Capitalization and Liabilities $3,593,452 $10,387,381
============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
The
Connecticut Public Service
Light and Company of
Northeast Power Company New Hampshire
Utilities (consolidated) (consolidated)
(parent) (b) (b)
--------- -------------- --------------
<S> <C> <C> <C>
Operating Revenues $ 0 $2,386,864 $1,087,247
--------- -------------- --------------
Operating Expenses:
Operation--
Fuel, purchased and net interchange power 0 887,224 322,071
Other 7,599 703,971 400,730
Maintenance 2 271,317 51,734
Depreciation 0 216,509 45,342
Amortization of regulatory assets, net 0 120,884 26,758
Federal and state income taxes 1,569 (11,642) 64,792
Taxes other than income taxes 73 170,347 43,181
--------- -------------- --------------
Total operating expenses 9,243 2,358,610 954,608
--------- -------------- --------------
Operating Income (Loss) (9,243) 28,254 132,639
--------- -------------- --------------
Other Income:
Equity in earnings of subsidiaries (145,874) 0 0
Deferred nuclear plants return--other funds 0 165 0
Equity in earnings of regional nuclear
generating companies and transmission
companies 2,903 6,241 1,577
Other, net 21,995 (6,240) 8,854
Minority interest in income of subsidiary 0 (9,300) 0
Millstone 1-unrecoverable costs 0 (143,239) 0
Gain on sale of investments 0 0 0
Reserve for loss on sale of COE Ave Fenix
Investment in Ave Fenix Energia, S.A. 0 0 0
Income taxes 0 67,127 (7,473)
--------- -------------- --------------
Other income (loss), net (120,976) (85,246) 2,958
--------- -------------- --------------
Income (loss) before interest charges (130,219) (56,992) 135,597
--------- -------------- --------------
Interest Charges:
Interest on long-term debt 16,187 133,192 43,317
Other interest 347 5,898 594
Deferred nuclear plants return--borrowed funds 0 (357) 0
--------- -------------- --------------
Interest charges, net 16,534 138,733 43,911
--------- -------------- --------------
Net Income (Loss) $(146,753) $ (195,725) $ 91,686
========= ============== ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Western
Massachusetts Holyoke
Electric Water Power
Company North Atlantic Company
(consolidatd) Energy (consolidated)
(b) Corporation (b)
------------- -------------- --------------
<S> <C> <C> <C>
Operating Revenues $393,322 $276,685 $41,750
------------- -------------- --------------
Operating Expenses:
Operation--
Fuel, purchased and net interchange power 113,148 13,305 19,937
Other 134,916 36,763 4,646
Maintenance 56,622 14,120 4,912
Depreciation 40,901 25,381 2,067
Amortization of regulatory assets, net 6,016 85,464 (1)
Federal and state income taxes 2,109 36,194 898
Taxes other than income taxes 19,756 11,401 3,810
------------- -------------- --------------
Total operating expenses 373,468 222,628 36,269
------------- -------------- --------------
Operating Income (Loss) 19,854 54,057 5,481
------------- -------------- --------------
Other Income:
Equity in earnings of subsidiaries 0 0 0
Deferred nuclear plants return--other funds 0 6,731 0
Equity in earnings of regional nuclear
generating companies and transmission
companies 1,699 0 0
Other, net (1,905) (8,435) (135)
Minority interest in income of subsidiary 0 0 0
Millstone 1-unrecoverable costs 0 0 0
Gain on sale of investments 0 0 0
Reserve for loss on sale of COE Ave Fenix
Investment in Ave Fenix Energia, S.A. 0 0 0
Income taxes 2,198 14,378 163
------------- -------------- --------------
Other income (loss), net 1,992 12,674 28
------------- -------------- --------------
Income (loss) before interest charges 21,846 66,731 5,509
------------- -------------- --------------
Interest Charges:
Interest on long-term debt 28,027 50,082 1,569
Other interest 3,415 (676) 9
Deferred nuclear plants return--borrowed funds (17) (12,169) 0
------------- -------------- --------------
Interest charges, net 31,425 37,237 1,578
------------- -------------- --------------
Net Income (Loss) $ (9,579) $ 29,494 $ 3,931
============= ============== ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Northeast Northeast
Utilities Nuclear North Atlantic
Service Energy Energy Service
Company Company Corporation
--------- --------- --------------
<S> <C> <C> <C>
Operating Revenues $293,229 $531,666 $144,803
--------- --------- --------------
Operating Expenses:
Operation--
Fuel, purchased and net interchange power 0 0 7,927
Other 261,445 288,306 92,338
Maintenance 12,493 224,934 39,241
Depreciation 10,543 1,768 0
Amortization of regulatory assets, net 0 0 0
Federal and state income taxes (175) (2,309) 447
Taxes other than income taxes 12,698 12,860 4,412
--------- --------- --------------
Total operating expenses 297,004 525,559 144,365
--------- --------- --------------
Operating Income (Loss) (3,775) 6,107 438
--------- --------- --------------
Other Income:
Equity in earnings of subsidiaries 0 0 0
Deferred nuclear plants return--other funds 0 0 0
Equity in earnings of regional nuclear
generating companies and transmission
companies 0 0 0
Other, net 4,086 (1,379) (355)
Minority interest in income of subsidiary 0 0 0
Millstone 1-unrecoverable costs 0 0 0
Gain on sale of investments 0 0 0
Reserve for loss on sale of COE Ave Fenix
Investment in Ave Fenix Energia, S.A. 0 0 0
Income taxes 0 0 0
--------- --------- --------------
Other income (loss), net 4,086 (1,379) (355)
--------- --------- --------------
Income (loss) before interest charges 311 4,728 83
--------- --------- --------------
Interest Charges:
Interest on long-term debt 0 1,907 0
Other interest 311 762 83
Deferred nuclear plants return--borrowed funds 0 0 0
--------- --------- --------------
Interest charges, net 311 2,669 83
--------- --------- --------------
Net Income (Loss) $ 0 $ 2,059 $ 0
========= ========= ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Charter Oak
The The Rocky Energy, Inc.
Quinnehtuk River Realty (consolidated)
Company Company (b)
---------- ------------ --------------
<S> <C> <C> <C>
Operating Revenues $ 209 $6,619 $ 0
---------- ------------ --------------
Operating Expenses:
Operation--
Fuel, purchased and net interchange power 0 0 0
Other 22 648 1,994
Maintenance 0 0 1
Depreciation 55 2,301 0
Amortization of regulatory assets, net 0 0 0
Federal and state income taxes (275) 2 425
Taxes other than income taxes 298 1,394 (57)
---------- ------------ --------------
Total operating expenses 100 4,345 2,363
---------- ------------ --------------
Operating Income (Loss) 109 2,274 (2,363)
---------- ------------ --------------
Other Income:
Equity in earnings of subsidiaries 0 0 0
Deferred nuclear plants return--other funds 0 0 0
Equity in earnings of regional nuclear
generating companies and transmission
companies 0 0 0
Other, net (43) 56 (6,690)
Minority interest in income of subsidiary 0 0 0
Millstone 1-unrecoverable costs 0 0 0
Gain on sale of investments 0 0 3,978
Reserve for loss on sale of COE Ave Fenix
Investment in Ave Fenix Energia, S.A. 0 0 (20,000)
Income taxes 0 0 0
---------- ------------ --------------
Other income (loss), net (43) 56 (22,712)
---------- ------------ --------------
Income (loss) before interest charges 66 2,330 (25,075)
---------- ------------ --------------
Interest Charges:
Interest on long-term debt 0 1,450 0
Other interest 303 880 0
Deferred nuclear plants return--borrowed funds 0 0 0
---------- ------------ --------------
Interest charges, net 303 2,330 0
---------- ------------ --------------
Net Income (Loss) $(237) $ 0 $(25,075)
========== ============ ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Select Mode 1 HEC Inc.
Energy, Communications, (consolidated)
Inc. Inc. (b)
----------- --------------- --------------
<S> <C> <C> <C>
Operating Revenues $ 29,254 $ 0 $22,708
----------- --------------- --------------
Operating Expenses:
Operation--
Fuel, purchased and net interchange power 22,467 0 0
Other 26,920 233 22,873
Maintenance 29 0 36
Depreciation 0 0 443
Amortization of regulatory assets, net 0 0 0
Federal and state income taxes (7,832) (1,363) (281)
Taxes other than income taxes 812 10 356
----------- --------------- --------------
Total operating expenses 42,396 (1,120) 23,427
----------- --------------- --------------
Operating Income (Loss) (13,142) 1,120 (719)
----------- --------------- --------------
Other Income:
Equity in earnings of subsidiaries 0 0 0
Deferred nuclear plants return--other funds 0 0 0
Equity in earnings of regional nuclear
generating companies and transmission
companies 0 0 0
Other, net 26 (3,379) 152
Minority interest in income of subsidiary 0 0 0
Millstone 1-unrecoverable costs 0 0 0
Gain on sale of investments 0 0 0
Reserve for loss on sale of COE Ave Fenix
Investment in Ave Fenix Energia, S.A. 0 0 0
Income taxes 0 0 0
----------- --------------- --------------
Other income (loss), net 26 (3,379) 152
----------- --------------- --------------
Income (loss) before interest charges (13,116) (2,259) (567)
----------- --------------- --------------
Interest Charges:
Interest on long-term debt 0 0 0
Other interest 253 0 108
Deferred nuclear plants return--borrowed funds 0 0 0
----------- --------------- --------------
Interest charges, net 253 0 108
----------- --------------- --------------
Net Income (Loss) $(13,369) $(2,259) $ (675)
=========== =============== ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Eliminations Consolidated
------------ ------------
<S> <C> <C>
Operating Revenues $1,446,643 $3,767,714
------------ ------------
Operating Expenses:
Operation--
Fuel, purchased and net interchange power 89,599 1,296,480
Other 1,006,266 977,139
Maintenance 276,275 399,165
Depreciation 12,503 332,807
Amortization of regulatory assets, net 35,990 203,132
Federal and state income taxes 227 82,332
Taxes other than income taxes 29,419 251,932
------------ ------------
Total operating expenses 1,450,279 3,542,987
------------ ------------
Operating Income (Loss) (3,636) 224,727
------------ ------------
Other Income:
Equity in earnings of subsidiaries (145,874) 0
Deferred nuclear plants return--other funds 0 6,896
Equity in earnings of regional nuclear
generating companies and transmission
companies 0 12,420
Other, net 25,731 (19,121)
Minority interest in income of subsidiary 0 (9,300)
Millstone 1-unrecoverable costs 0 (143,239)
Gain on sale of investments 3,978 0
Reserve for loss on sale of COE Ave Fenix
Investment in Ave Fenix Energia, S.A. (20,000) 0
Income taxes 0 76,393
------------ ------------
Other income (loss), net (136,165) (75,951)
------------ ------------
Income (loss) before interest charges (139,801) 148,776
------------ ------------
Interest Charges:
Interest on long-term debt 1,907 273,824
Other interest 4,479 7,808
Deferred nuclear plants return--borrowed funds 0 (12,543)
------------ ------------
Interest charges, net 6,386 269,089
------------ ------------
Net Income (Loss) $ (146,187) $ (120,313)
============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of
Retained Earnings (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
The
Connecticut Public Service
Light and Company of
Northeast Power Company New Hampshire
Utilities (consolidated) (consolidated)
(parent) (b) (b)
---------- -------------- --------------
<S> <C> <C> <C>
Balance at beginning of period $ 707,522 $ 419,972 $170,501
Addition: Net income (loss) (146,753) (195,725) 91,686
---------- -------------- --------------
560,769 224,247 262,187
---------- -------------- --------------
Deductions:
Dividends declared:
Preferred stock (at required annual rates):
The Connecticut Light and Power Company 14,139
Western Massachusetts Electric Company
Public Service Company of New Hampshire 9,275
Common shares:
$1,333.33 per share
$20,000.00 per share
$25,000.00 per share
---------- -------------- --------------
0 14,139 9,275
---------- -------------- --------------
Balance at end of period $ 560,769 $ 210,108 $252,912
========== ============== ==============
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of
Capital Surplus, Paid In (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
The
Connecticut Public Service
Light and Company of
Northeast Power Company New Hampshire
Utilities (consolidated) (consolidated)
(parent) (b) (b)
---------- -------------- --------------
<S> <C> <C> <C>
Balance at beginning of period $932,494 $641,333 $423,713
Capital contribution from Northeast Utilities 0 20,000 0
Dividends declared on common shares:
$194,000.00 per share 0 0 0
Issuance of 189,094 common shares 1,714 0 0
Allocation of benefits--ESOP (4,769) 0 0
Gain on repurchase of preferred stock 59 59 0
Unearned stock compensation (537) 0 0
Gain on equity investment 8,140 0 0
Capital stock expenses, net 3,560 2,764 537
---------- -------------- --------------
Balance at end of period $940,661 $664,156 $424,250
========== ============== ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of
Retained Earnings (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Western
Massachusetts Holyoke
Electric Water Power
Company North Atlantic Company
(consolidated) Energy (consolidated)
(b) Corporation (b)
-------------- -------------- --------------
<S> <C> <C> <C>
Balance at beginning of period $58,608 $58,702 $ 9,661
Addition: Net income (loss) (9,579) 29,494 3,931
-------------- -------------- --------------
49,029 88,196 13,592
-------------- -------------- --------------
Deductions:
Dividends declared:
Preferred stock (at required annual rates):
The Connecticut Light and Power Company
Western Massachusetts Electric Company 3,026
Public Service Company of New Hampshire
Common shares:
$1,333.33 per share
$20,000.00 per share 20,000
$25,000.00 per share 25,000
-------------- -------------- --------------
3,026 45,000 0
-------------- -------------- --------------
Balance at end of period $46,003 $43,196 $13,592
============== ============== ==============
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of
Capital Surplus, Paid In (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Western
Massachusetts Holyoke
Electric Water Power
Company North Atlantic Company
(consolidated) Energy (consolidated)
(b) Corporation (b)
-------------- -------------- --------------
<S> <C> <C> <C>
Balance at beginning of period $151,171 $160,999 $6,000
Capital contribution from Northeast Utilities 0 0 0
Dividends declared on common shares:
$194,000.00 per share 0 0 0
Issuance of 189,094 common shares 0 0 0
Allocation of benefits--ESOP 0 0 0
Gain on repurchase of preferred stock 0 0 0
Unearned stock compensation 0 0 0
Gain on equity investment 0 0 0
Capital stock expenses, net 260 0 0
-------------- -------------- --------------
Balance at end of period $151,431 $160,999 $6,000
============== ============== ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of
Retained Earnings (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Northeast
Nuclear North Atlantic The
Energy Energy Service Quinnehtuk
Company Corporation Company
--------- -------------- --------------
<S> <C> <C> <C>
Balance at beginning of period $ 864 $2 $(2,490)
Addition: Net income (loss) 2,059 0 (237)
--------- -------------- --------------
2,923 2 (2,727)
--------- -------------- --------------
Deductions:
Dividends declared:
Preferred stock (at required annual rates):
The Connecticut Light and Power Company
Western Massachusetts Electric Company
Public Service Company of New Hampshire
Common shares:
$1,333.33 per share 2,000
$20,000.00 per share
$25,000.00 per share
--------- -------------- --------------
2,000 0 0
--------- -------------- --------------
Balance at end of period $ 923 $2 $(2,727)
========= ============== ==============
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of
Capital Surplus, Paid In (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Northeast Northeast
Utilities Nuclear North Atlantic
Service Energy Energy Service
Company Company Corporation
--------- -------------- --------------
<S> <C> <C> <C>
Balance at beginning of period $1 $15,350 $9
Capital contribution from Northeast Utilities 0 0 0
Dividends declared on common shares:
$194,000.00 per share 0 0 0
Issuance of 189,094 common shares 0 0 0
Allocation of benefits--ESOP 0 0 0
Gain on repurchase of preferred stock 0 0 0
Unearned stock compensation 0 0 0
Gain on equity investment 0 0 0
Capital stock expenses, net 0 0 0
--------- -------------- --------------
Balance at end of period $1 $15,350 $9
========= ============== ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of
Retained Earnings (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Charter Oak
The Rocky Energy, Inc. Select
River Realty (consolidated) Energy,
Company (b) Inc.
-------------- -------------- -----------
<S> <C> <C> <C>
Balance at beginning of period 674 (58,129) (2,885)
Addition: Net income (loss) 0 (25,075) (13,369)
-------------- -------------- -----------
674 (83,204) (16,254)
-------------- -------------- -----------
Deductions:
Dividends declared:
Preferred stock (at required annual rates):
The Connecticut Light and Power Company
Western Massachusetts Electric Company
Public Service Company of New Hampshire
Common shares:
$1,333.33 per share
$20,000.00 per share
$25,000.00 per share
-------------- -------------- -----------
0 0 0
-------------- -------------- -----------
Balance at end of period 674 (83,204) (16,254)
============== ============== ===========
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of
Capital Surplus, Paid In (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Charter Oak
The Energy, Inc. Select
Quinnehtuk (consolidated) Energy,
Company (b) Inc.
-------------- -------------- -----------
<S> <C> <C> <C>
Balance at beginning of period $155 $102,344 $ 4,051
Capital contribution from Northeast Utilities 0 9,800 17,000
Dividends declared on common shares:
$194,000.00 per share 0 (19,400) 0
Issuance of 189,094 common shares 0 0 0
Allocation of benefits--ESOP 0 0 0
Gain on repurchase of preferred stock 0 0 0
Unearned stock compensation 0 0 0
Gain on equity investment 0 0 0
Capital stock expenses, net 0 0 0
-------------- -------------- -----------
Balance at end of period $155 $ 92,744 $21,051
============== ============== ===========
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of
Retained Earnings (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Mode 1 HEC Inc.
Communications, (consolidated)
Inc. (b)
--------------- --------------
<S> <C> <C>
Balance at beginning of period $(1,435) $ 113
Addition: Net income (loss) (2,259) (675)
--------------- --------------
(3,694) (562)
--------------- --------------
Deductions:
Dividends declared:
Preferred stock (at required annual rates):
The Connecticut Light and Power Company
Western Massachusetts Electric Company
Public Service Company of New Hampshire
Common shares:
$1,333.33 per share
$20,000.00 per share
$25,000.00 per share
--------------- --------------
0 0
--------------- --------------
Balance at end of period $(3,694) $(562)
=============== ==============
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of
Capital Surplus, Paid In (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Mode 1 HEC Inc.
Communications, (consolidated)
Inc. (b)
--------------- --------------
<S> <C> <C>
Balance at beginning of period $ 8,017 $3,999
Capital contribution from Northeast Utilities 0 0
Dividends declared on common shares:
$194,000.00 per share 0 0
Issuance of 189,094 common shares 0 0
Allocation of benefits--ESOP 0 0
Gain on repurchase of preferred stock 0 0
Unearned stock compensation 0 0
Gain on equity investment 8,140 0
Capital stock expenses, net 0 0
--------------- --------------
Balance at end of period $16,157 $3,999
=============== ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of
Retained Earnings (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Eliminations Consolidated
------------ ------------
<S> <C> <C>
Balance at beginning of period $ 654,157 $ 707,522
Addition: Net income (loss) (146,187) (120,313)
------------ ------------
507,970 587,209
------------ ------------
Deductions:
Dividends declared:
Preferred stock (at required annual rates):
The Connecticut Light and Power Company 14,139
Western Massachusetts Electric Company 3,026
Public Service Company of New Hampshire 9,275
Common shares:
$1,333.33 per share 2,000 0
$20,000.00 per share 20,000 0
$25,000.00 per share 25,000 0
------------ ------------
47,000 26,440
------------ ------------
Balance at end of period $ 460,970 $ 560,769
============ ============
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of
Capital Surplus, Paid In (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Eliminations Consolidated
------------ ------------
<S> <C> <C>
Balance at beginning of period $1,517,142 $932,494
Capital contribution from Northeast Utilities 46,800 0
Dividends declared on common shares:
$194,000.00 per share (19,400) 0
Issuance of 189,094 common shares 0 1,714
Allocation of benefits--ESOP 0 (4,769)
Gain on repurchase of preferred stock 59 59
Unearned stock compensation 0 (537)
Gain on equity investment 8,140 8,140
Capital stock expenses, net 3,560 3,560
------------ ------------
Balance at end of period $1,556,301 $940,661
============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
The
Connecticut Public Service
Light and Company of
Northeast Power Company New Hampshire
Utilities (consolidated) (consolidated)
(parent) (b) (b)
------------ -------------- --------------
<S> <C> <C> <C>
Operating Activities:
Net (loss)/income $ (146,753) $ (195,725) $ 91,686
Adjustments to reconcile to net cash
from operating activities:
Depreciation 0 216,509 45,342
Deferred income taxes and investment tax credits, net 777 (65,689) 78,359
Deferred nuclear plants return 0 (521) 0
Amortization of nuclear plants return 0 0 0
Amortization of deferred demand-side-management costs, net 0 42,085 0
Amortization/(deferral) of recoverable energy costs 0 30,745 2,065
Amortization of PSNH acquisition costs 0 0 49,431
Amortization of regulatory assets - income taxes 0 66,027 0
Amortization of cogeneration deferral 0 29,559 0
Amortization of regulatory liability - PSNH 0 0 (32,860)
Amortization of other regulatory assets 0 25,298 10,187
Millstone 1 -- unrecoverable costs 0 143,239 0
Equity in earnings of subsidiary companies 145,874 0 0
Cash dividends received from subsidiary companies 47,000 0 0
Other sources of cash 21,512 82,109 32,374
Other uses of cash (586) (23,040) (85,202)
Changes in working capital:
Receivables and accrued utility revenues, net (84) (5,086) 21,948
Fuel, materials and supplies 0 9,896 3,519
Accounts payable 523 (63,592) 404
Accrued taxes (15,815) (13,621) 13,279
Sale of receivables and accrued utility revenues 0 35,000 0
Investments in securitizable assets 0 45,372 0
Other working capital (excludes cash) (166) 30,097 (13,714)
------------ -------------- --------------
Net cash flows from/(used for) operating activities 52,282 388,662 216,818
------------ -------------- --------------
Financing Activities:
Issuance of common shares 2,659 0 0
Issuance of long-term debt 0 0 0
Net (decrease)/increase in short-term debt 0 (86,300) 0
Reacquisitions and retirements of long-term debt (17,000) (45,006) (170,000)
Reacquisitions and retirements of preferred stock 0 (35,711) (25,000)
Cash dividends on preferred stock 0 (14,139) (9,275)
Cash dividends on common shares 0 0 0
Other paid in capital 0 0 0
------------ -------------- --------------
Net cash flows (used for)/from financing activities (14,341) (181,156) (204,275)
------------ -------------- --------------
Investment Activities:
Investment in plant:
Electric and other utility plant 0 (132,194) (43,780)
Nuclear fuel 0 (8,444) (307)
------------ -------------- --------------
Net cash flows used for investments in plant 0 (140,638) (44,087)
NU system Money Pool (200) (6,600) 0
Investment in subsidiaries (40,029) 0 0
Investment in nuclear decommissioning trusts 0 (54,106) (641)
Other investment activities, net 2,278 (26,187) (746)
Capital contributions from Northeast Utilities 0 20,000 0
------------ -------------- --------------
Net cash flows (used for)/from investments (37,951) (207,531) (45,474)
------------ -------------- --------------
Net (decrease)/increase in cash for the period (10) (25) (32,931)
Cash and cash equivalents - beginning of period 10 459 94,647
------------ -------------- --------------
Cash and cash equivalents - end of period $ 0 $ 434 $ 61,716
============ ============== ==============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 16,610 $ 110,119 $ 46,277
Income taxes $ 16,929 $ (46,747) $ 18,694
Increase in obligations:
Niantic Bay Fuel Trust and other capital leases $ - $ 4,102 $ -
Seabrook Power Contracts $ - $ - $ 0
Note: Individual columns may not add to Consolidated financial statements due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Western
Massachusetts Holyoke
Electric North Water Power
Company Atlantic Company
(consolidated) Energy (consolidated)
(b) Corporation (b)
-------------- ------------ --------------
<S> <C> <C> <C>
Operating Activities:
Net (loss)/income $ (9,579) $ 29,494 $ 3,931
Adjustments to reconcile to net cash
from operating activities:
Depreciation 40,901 25,381 2,067
Deferred income taxes and investment tax credits, net 7,405 6,010 727
Deferred nuclear plants return (18) (18,900) 0
Amortization of nuclear plants return 0 86,376
Amortization of deferred demand-side-management costs, net 0 0 0
Amortization/(deferral) of recoverable energy costs 5,366 0 0
Amortization of PSNH acquisition costs 0 0 0
Amortization of regulatory assets - income taxes 2,657 0
Amortization of cogeneration deferral 0 0 0
Amortization of regulatory liability - PSNH 0 0
Amortization of other regulatory assets 3,359 (912)
Millstone 1 -- unrecoverable costs 0 0 0
Equity in earnings of subsidiary companies 0 0 0
Cash dividends received from subsidiary companies 0 0 0
Other sources of cash 9,029 35,096 316
Other uses of cash (11,791) (16,173) (489)
Changes in working capital:
Receivables and accrued utility revenues, net 1,622 1,891 370
Fuel, materials and supplies 807 191 (633)
Accounts payable (20,962) (7,161) (1,663)
Accrued taxes 742 710 2,089
Sale of receivables and accrued utility revenues 0 0 0
Investments in securitizable assets 3,415 0 0
Other working capital (excludes cash) (3,441) (13,258) (1,076)
-------------- ------------ --------------
Net cash flows from/(used for) operating activities 29,512 128,745 5,639
-------------- ------------ --------------
Financing Activities:
Issuance of common shares 0 0 0
Issuance of long-term debt 0 0 0
Net (decrease)/increase in short-term debt 21,550 (9,950) 0
Reacquisitions and retirements of long-term debt (9,800) (20,000) 0
Reacquisitions and retirements of preferred stock (1,500) 0 0
Cash dividends on preferred stock (3,026) 0 0
Cash dividends on common shares 0 (45,000) 0
Other paid in capital 0 0 0
-------------- ------------ --------------
Net cash flows (used for)/from financing activities 7,224 (74,950) 0
-------------- ------------ --------------
Investment Activities:
Investment in plant:
Electric and other utility plant (19,895) (9,028) (1,045)
Nuclear fuel (1,801) (6,474) 0
-------------- ------------ --------------
Net cash flows used for investments in plant (21,696) (15,502) (1,045)
NU system Money Pool 0 (30,350) (950)
Investment in subsidiaries 0 0 0
Investment in nuclear decommissioning trusts (12,918) (7,885) 0
Other investment activities, net (2,121) 0 1
Capital contributions from Northeast Utilities 0 0 0
-------------- ------------ --------------
Net cash flows (used for)/from investments (36,735) (53,737) (1,994)
-------------- ------------ --------------
Net (decrease)/increase in cash for the period 1 58 3,645
Cash and cash equivalents - beginning of period 105 13 10
-------------- ------------ --------------
Cash and cash equivalents - end of period $ 106 $ 71 $ 3,655
============== ============ ==============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 22,902 $ 42,498 $ 1,358
Income taxes $ (2,624) $ 22,136 $ (285)
Increase in obligations:
Niantic Bay Fuel Trust and other capital leases $ 962 $ - $ -
Seabrook Power Contracts $ - $ - $ -
Note: Individual columns may not add to Consolidated financial statements due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPITON>
North
Northeast Northeast Atlantic
Utilities Nuclear Energy
Service Energy Service
Company Company Corporation
------------ ------------- ------------
<S> <C> <C> <C>
Operating Activities:
Net (loss)/income $ 0 $ 2,059 $ 0
Adjustments to reconcile to net cash
from operating activities:
Depreciation 10,543 1,768 0
Deferred income taxes and investment tax credits, net 2,278 (4,107) 90
Deferred nuclear plants return 0 0 0
Amortization of nuclear plants return
Amortization of deferred demand-side-management costs, net 0 0 0
Amortization/(deferral) of recoverable energy costs 0 0 0
Amortization of PSNH acquisition costs 0 0 0
Amortization of regulatory assets - income taxes
Amortization of cogeneration deferral 0 0 0
Amortization of regulatory liability - PSNH
Amortization of other regulatory assets
Millstone 1 -- unrecoverable costs 0 0 0
Equity in earnings of subsidiary companies 0 0 0
Cash dividends received from subsidiary companies 0 0 0
Other sources of cash 5,342 5,491 291
Other uses of cash (840) (963) (2,442)
Changes in working capital:
Receivables and accrued utility revenues, net 47,370 10,104 3,357
Fuel, materials and supplies (605) (2,642) (500)
Accounts payable (32,575) (88,090) (2,742)
Accrued taxes (10,500) (2,208) 523
Sale of receivables and accrued utility revenues 0 0 0
Investments in securitizable assets 0 0 0
Other working capital (excludes cash) (11,290) 18,239 1,548
------------ ------------- ------------
Net cash flows from/(used for) operating activities 9,723 (60,349) 125
------------ ------------- ------------
Financing Activities:
Issuance of common shares 0 0 0
Issuance of long-term debt 0 0 0
Net (decrease)/increase in short-term debt (34,600) 0 0
Reacquisitions and retirements of long-term debt 0 (6,011) 0
Reacquisitions and retirements of preferred stock 0 0 0
Cash dividends on preferred stock 0 0 0
Cash dividends on common shares 0 (2,000) 0
Other paid in capital 0 0 0
------------ ------------- ------------
Net cash flows (used for)/from financing activities (34,600) (8,011) 0
------------ ------------- ------------
Investment Activities:
Investment in plant:
Electric and other utility plant (7,664) (3,564) 0
Nuclear fuel 0 0 0
------------ ------------- ------------
Net cash flows used for investments in plant (7,664) (3,564) 0
NU system Money Pool 53,400 72,700 0
Investment in subsidiaries 0 0 0
Investment in nuclear decommissioning trusts 0 0 0
Other investment activities, net (726) 0 0
Capital contributions from Northeast Utilities 0 0 0
------------ ------------- ------------
Net cash flows (used for)/from investments 45,010 69,136 0
------------ ------------- ------------
Net (decrease)/increase in cash for the period 20,133 776 125
Cash and cash equivalents - beginning of period 44,200 2 1,690
------------ ------------- ------------
Cash and cash equivalents - end of period $ 64,333 $ 778 $ 1,815
============ ============= ============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 11 $ 2,341 $ -
Income taxes $ 7,626 $ 4,006 $ (114)
Increase in obligations:
Niantic Bay Fuel Trust and other capital leases $ - $ - $ -
Seabrook Power Contracts $ - $ - $ -
Note: Individual columns may not add to Consolidated financial statements due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
The Rocky Charter Oak
The River Energy, Inc.
Quinnehtuk Realty (consolidated)
Company Company (b)
----------- ------------ --------------
<S> <C> <C> <C>
Operating Activities:
Net (loss)/income $ (237) $ 0 $ (25,075)
Adjustments to reconcile to net cash
from operating activities:
Depreciation 55 2,300 0
Deferred income taxes and investment tax credits, net 14 66 (382)
Deferred nuclear plants return 0 0 0
Amortization of nuclear plants return
Amortization of deferred demand-side-management costs, net 0 0 0
Amortization/(deferral) of recoverable energy costs 0 0 0
Amortization of PSNH acquisition costs 0 0 0
Amortization of regulatory assets - income taxes
Amortization of cogeneration deferral 0 0 0
Amortization of regulatory liability - PSNH
Amortization of other regulatory assets
Millstone 1 -- unrecoverable costs 0 0 0
Equity in earnings of subsidiary companies 0 0 0
Cash dividends received from subsidiary companies 0 0 0
Other sources of cash 3 17 4,465
Other uses of cash (52) (1,265) (692)
Changes in working capital:
Receivables and accrued utility revenues, net 0 673 (195)
Fuel, materials and supplies 0 0 0
Accounts payable 40 73 (276)
Accrued taxes (175) (324) (25)
Sale of receivables and accrued utility revenues 0 0 0
Investments in securitizable assets 0 0 0
Other working capital (excludes cash) (138) 218 3,748
----------- ------------ --------------
Net cash flows from/(used for) operating activities (490) 1,758 (18,432)
----------- ------------ --------------
Financing Activities:
Issuance of common shares 0 0 0
Issuance of long-term debt 0 0 0
Net (decrease)/increase in short-term debt 550 350 0
Reacquisitions and retirements of long-term debt 0 (1,738) 0
Reacquisitions and retirements of preferred stock 0 0 0
Cash dividends on preferred stock 0 0 0
Cash dividends on common shares 0 0 0
Other paid in capital 0 0 (9,600)
----------- ------------ --------------
Net cash flows (used for)/from financing activities 550 (1,388) (9,600)
----------- ------------ --------------
Investment Activities:
Investment in plant:
Electric and other utility plant 373 (402) (63)
Nuclear fuel 0 0 0
----------- ------------ --------------
Net cash flows used for investments in plant 373 (402) (63)
NU system Money Pool 0 0 0
Investment in subsidiaries 0 0 0
Investment in nuclear decommissioning trusts 0 0 0
Other investment activities, net (373) 3 27,213
Capital contributions from Northeast Utilities 0 0 0
----------- ------------ --------------
Net cash flows (used for)/from investments 0 (399) 27,150
----------- ------------ --------------
Net (decrease)/increase in cash for the period 60 (29) (882)
Cash and cash equivalents - beginning of period 18 100 1,637
----------- ------------ --------------
Cash and cash equivalents - end of period $ 78 $ 71 $ 755
=========== ============ ==============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 303 $ 2,112 $ -
Income taxes $ 10 $ 268 $ (189)
Increase in obligations:
Niantic Bay Fuel Trust and other capital leases $ - $ - $ -
Seabrook Power Contracts $ - $ - $ -
Note: Individual columns may not add to Consolidated financial statements due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Select Mode 1 HEC, Inc.
Energy, Communications, (consolidated)
Inc. Inc. (b)
------------ --------------- --------------
<S> <C> <C> <C>
Operating Activities:
Net (loss)/income $ (13,369) $ (2,259) $ (675)
Adjustments to reconcile to net cash
from operating activities:
Depreciation 0 0 443
Deferred income taxes and investment tax credits, net (28) (1,617) (310)
Deferred nuclear plants return 0 0 0
Amortization of nuclear plants return
Amortization of deferred demand-side-management costs, net 0 0 0
Amortization/(deferral) of recoverable energy costs 0 0 0
Amortization of PSNH acquisition costs 0 0 0
Amortization of regulatory assets - income taxes
Amortization of cogeneration deferral 0 0 0
Amortization of regulatory liability - PSNH
Amortization of other regulatory assets
Millstone 1 -- unrecoverable costs 0 0 0
Equity in earnings of subsidiary companies 0 0 0
Cash dividends received from subsidiary companies 0 0 0
Other sources of cash 1 5,546 343
Other uses of cash (1,267) (36) (34)
Changes in working capital:
Receivables and accrued utility revenues, net (24,688) 0 144
Fuel, materials and supplies 3 0 26
Accounts payable 31,871 (475) (447)
Accrued taxes 0 0 (161)
Sale of receivables and accrued utility revenues 0 0 0
Investments in securitizable assets 0 0 0
Other working capital (excludes cash) (6,875) 453 20
------------ --------------- --------------
Net cash flows from/(used for) operating activities (14,352) 1,612 (651)
------------ --------------- --------------
Financing Activities:
Issuance of common shares 0 0 0
Issuance of long-term debt 0 0 275
Net (decrease)/increase in short-term debt 0 0 400
Reacquisitions and retirements of long-term debt 0 0 0
Reacquisitions and retirements of preferred stock 0 0 0
Cash dividends on preferred stock 0 0 0
Cash dividends on common shares 0 0 0
Other paid in capital 17,000 8,141 0
------------ --------------- --------------
Net cash flows (used for)/from financing activities 17,000 8,141 675
------------ --------------- --------------
Investment Activities:
Investment in plant:
Electric and other utility plant 0 0 (110)
Nuclear fuel 0 0 0
------------ --------------- --------------
Net cash flows used for investments in plant 0 0 (110)
NU system Money Pool 0 0 0
Investment in subsidiaries 0 0 0
Investment in nuclear decommissioning trusts 0 0 0
Other investment activities, net (2,647) (7,836) 0
Capital contributions from Northeast Utilities 0 0 0
------------ --------------- --------------
Net cash flows (used for)/from investments (2,647) (7,836) (110)
------------ --------------- --------------
Net (decrease)/increase in cash for the period 1 1,917 (86)
Cash and cash equivalents - beginning of period 0 0 511
------------ --------------- --------------
Cash and cash equivalents - end of period $ 1 $ 1,917 $ 425
============ =============== ==============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 47 $ - $ 76
Income taxes $ (159) $ (198) $ 101
Increase in obligations:
Niantic Bay Fuel Trust and other capital leases $ - $ - $ -
Seabrook Power Contracts $ - $ - $ -
Note: Individual columns may not add to Consolidated financial statements due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Eliminations Consolidated
------------- -------------
<S> <C> <C>
Operating Activities:
Net (loss)/income $ (146,189) $ (120,313)
Adjustments to reconcile to net cash
from operating activities:
Depreciation 12,502 332,807
Deferred income taxes and investment tax credits, net 91 23,502
Deferred nuclear plants return 0 (19,439)
Amortization of nuclear plants return 35,990 50,386
Amortization of deferred demand-side-management costs, net 0 42,085
Amortization/(deferral) of recoverable energy costs (180) 38,356
Amortization of PSNH acquisition costs 0 49,431
Amortization of regulatory assets - income taxes 0 68,684
Amortization of cogeneration deferral 0 29,559
Amortization of regulatory liability - PSNH 0 (32,860)
Amortization of other regulatory assets 0 37,932
Millstone 1 -- unrecoverable costs 0 143,239
Equity in earnings of subsidiary companies 145,874 0
Cash dividends received from subsidiary companies 47,000 0
Other sources of cash 20,343 181,591
Other uses of cash (63,601) (81,271)
Changes in working capital:
Receivables and accrued utility revenues, net 119,979 (62,553)
Fuel, materials and supplies 2 10,060
Accounts payable (120,814) (64,258)
Accrued taxes (30,225) 4,739
Sale of receivables and accrued utility revenues 0 35,000
Investments in securitizable assets 0 48,787
Other working capital (excludes cash) 31,079 (26,714)
------------- -------------
Net cash flows from/(used for) operating activities 51,851 688,750
------------- -------------
Financing Activities:
Issuance of common shares 0 2,659
Issuance of long-term debt 0 275
Net (decrease)/increase in short-term debt (88,000) (20,000)
Reacquisitions and retirements of long-term debt 0 (269,555)
Reacquisitions and retirements of preferred stock 0 (62,211)
Cash dividends on preferred stock 0 (26,440)
Cash dividends on common shares (47,000) 0
Other paid in capital 15,541 0
------------- -------------
Net cash flows (used for)/from financing activities (119,459) (375,272)
------------- -------------
Investment Activities:
Investment in plant:
Electric and other utility plant (363) (217,009)
Nuclear fuel 0 (17,026)
------------- -------------
Net cash flows used for investments in plant (363) (234,035)
NU system Money Pool 88,000 0
Investment in subsidiaries (40,029) 0
Investment in nuclear decommissioning trusts 0 (75,551)
Other investment activities, net 0 (11,140)
Capital contributions from Northeast Utilities 20,000 0
------------- -------------
Net cash flows (used for)/from investments 67,608 (320,726)
------------- -------------
Net (decrease)/increase in cash for the period 0 (7,248)
Cash and cash equivalents - beginning of period 0 143,403
------------- -------------
Cash and cash equivalents - end of period $ 0 $ 136,155
============= =============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 5,664 $ 238,990
Income taxes $ 0 $ 19,454
Increase in obligations:
Niantic Bay Fuel Trust and other capital leases $ 0 $ 5,064
Seabrook Power Contracts $ 0 $ -
Note: Individual columns may not add to Consolidated financial statements due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
</TABLE>
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Balance Sheet (b)
Assets
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
The
Connecticut CL&P
Light and Receivables CL&P
Power Company Corporation Capital,L.P.
------------- ----------- ------------
<S> <C> <C> <C>
Utility Plant, at original cost:
Electric $6,173,869 $ 0 $ 0
Less: Accumulated provision for
depreciation 2,758,012 0 0
------------- ----------- ------------
3,415,857 0 0
Construction work in progress 83,477 0 0
Nuclear fuel, net 87,867 0 0
------------- ----------- ------------
Total net utility plant 3,587,201 0 0
------------- ----------- ------------
Long-term Loan Receivable 0 0 103,100
------------- ----------- ------------
Other Property and Investments:
Nuclear decommissioning trusts, at market 452,755 0 0
Investments in regional nuclear
generating companies, at equity 56,999 0 0
Investments in subsidiary companies,
at equity 14,683 0 0
Other, at cost 93,857 0 0
------------- ----------- ------------
618,294 0 0
------------- ----------- ------------
Current Assets:
Cash and special deposits 36 53 288
Investments in securitizable assets 132,397 265,253 0
Notes receivable form affiliated companies 6,600 0 0
Receivables, net 22,186 0 0
Receivables from affiliated companies 10,234 14,268 0
Taxes receivable 26,478 0 0
Fuel, materials, and supplies, at
average cost 71,982 0 0
Prepayments and other 121,513 0 0
------------- ----------- ------------
391,426 279,574 288
------------- ----------- ------------
Deferred Charges:
Regulatory assets 1,415,838 0 0
Unamortized debt expense 19,603 0 0
Other 12,768 0 0
------------- ----------- ------------
1,448,209 0 0
------------- ----------- ------------
Total Assets $6,045,130 $279,574 $103,388
============= =========== ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not included are the following inactive subsidiaries: The Connecticut
Transmission Corporation, The Connecticut Steam Company and
The Nutmeg Power Company.
(b) Not covered by auditors' report.
</TABLE>
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Balance Sheet (b)
Assets
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
The City and
Electric Suburban
Power, Electric and Research
Incorporated Gas Company Park,
(inactive) (inactive) Incorporated
------------ ------------ ------------
<S> <C> <C> <C>
Utility Plant, at original cost:
Electric $2 $0 $ 0
Less: Accumulated provision for
depreciation 0 0 0
------------ ------------ ------------
2 0 0
Construction work in progress 0 0 0
Nuclear fuel, net 0 0 0
------------ ------------ ------------
Total net utility plant 2 0 0
------------ ------------ ------------
Long-term Loan Receivable 0 0 0
------------ ------------ ------------
Other Property and Investments:
Nuclear decommissioning trusts, at market 0 0 0
Investments in regional nuclear
generating companies, at equity 0 0 0
Investments in subsidiary companies,
at equity 0 0 0
Other, at cost 0 0 0
------------ ------------ ------------
0 0 0
------------ ------------ ------------
Current Assets:
Cash and special deposits 0 1 56
Investments in securitizable assets 0 0 0
Notes receivable form affiliated companies 0 0 0
Receivables, net 0 0 0
Receivables from affiliated companies 0 0 0
Taxes receivable 0 0 0
Fuel, materials, and supplies, at
average cost 0 0 0
Prepayments and other 0 0 0
------------ ------------ ------------
0 1 56
------------ ------------ ------------
Deferred Charges:
Regulatory assets 0 0 0
Unamortized debt expense 0 0 0
Other 0 0 0
------------ ------------ ------------
0 0 0
------------ ------------ ------------
Total Assets $2 $1 $56
============ ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not included are the following inactive subsidiaries: The Connecticut
Transmission Corporation, The Connecticut Steam Company and
The Nutmeg Power Company.
(b) Not covered by auditors' report.
</TABLE>
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Balance Sheet (b)
Assets
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Eliminations Consolidated
------------ ------------
<S> <C> <C>
Utility Plant, at original cost:
Electric $ 0 $6,173,871
Less: Accumulated provision for
depreciation 0 2,758,012
------------ ------------
0 3,415,859
Construction work in progress 0 83,477
Nuclear fuel, net 0 87,867
------------ ------------
Total net utility plant 0 3,587,203
------------ ------------
Long-term Loan Receivable 103,100 0
------------ ------------
Other Property and Investments:
Nuclear decommissioning trusts, at market 0 452,755
Investments in regional nuclear
generating companies, at equity 0 56,999
Investments in subsidiary companies,
at equity 14,683 0
Other, at cost (8) 93,864
------------ ------------
14,675 603,618
------------ ------------
Current Assets:
Cash and special deposits 0 434
Investments in securitizable assets 237,397 160,253
Notes receivable form affiliated companies 0 6,600
Receivables, net 0 22,186
Receivables from affiliated companies 22,781 1,721
Taxes receivable 0 26,478
Fuel, materials, and supplies, at
average cost 0 71,982
Prepayments and other 0 121,514
------------ ------------
260,178 411,168
------------ ------------
Deferred Charges:
Regulatory assets 0 1,415,838
Unamortized debt expense 0 19,603
Other 0 12,768
------------ ------------
0 1,448,209
------------ ------------
Total Assets $377,953 $6,050,198
============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not included are the following inactive subsidiaries: The Connecticut
Transmission Corporation, The Connecticut Steam Company and
The Nutmeg Power Company.
(b) Not covered by auditors' report.
</TABLE>
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Balance Sheet (b)
Capitalization and Liabilities
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
The
Connecticut CL&P
Light and Receivables CL&P
Power Company Corporation Capital,L.P.
------------- ----------- ------------
<S> <C> <C> <C>
Capitalization:
Common stockholder's equity:
Common stock $ 122,229 0 0
Capital surplus, paid in 664,156 $135,829 $ 3,100
Retained earnings 210,108 11,457 0
Accumulated other comprehensive income 378 0 0
------------- ----------- ------------
Total common stockholder's equity 996,871 147,286 3,100
Preferred stock not subject to mandatory
redemption 116,200 0 0
Preferred stock subject to mandatory
redemption 99,539 0 0
MIPS Preferred stock 0 0 100,000
Long-term debt 1,897,052 0 0
------------- ----------- ------------
Total capitalization 3,109,662 147,286 103,100
------------- ----------- ------------
Minority Interest in Common Equity
of Subsidiary 0 0 0
------------- ----------- ------------
Obligations Under Capital Leases 68,444 0 0
------------- ----------- ------------
Current Liabilities:
Notes payable to affiliated companies 0 0 0
Notes payable to banks 10,000 105,000 0
Long-term debt and preferred stock--
current portion 233,755 0 0
Obligations under capital leases--
current portion 94,440 0 0
Accounts payable 121,040 0 0
Accounts payable to affiliated companies 32,758 11,504 288
Accrued taxes 11,228 8,168 0
Accrued interest 31,409 7,616 0
Other 34,872 0 0
------------- ----------- ------------
569,502 132,288 288
------------- ----------- ------------
Deferred Credits:
Accumulated deferred income taxes 1,194,722 0 0
Accumulated deferred investment
tax credits 114,457 0 0
Decommissioning obligation--Millstone 1 560,500 0 0
Deferred contractual obligations 277,826 0 0
Other 150,017 0 0
------------- ----------- ------------
2,297,522 0 0
------------- ----------- ------------
Total Capitalization and Liabilities 6,045,130 279,574 $103,388
============= =========== ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not included are the following inactive subsidiaries: The Connecticut
Transmission Corporation, The Connecticut Steam Company and
The Nutmeg Power Company.
(b) Not covered by auditors' report.
</TABLE>
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Balance Sheet (b)
Capitalization and Liabilities
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION> The City and
Electric Suburban
Power, Electric and Research
Incorporated Gas Company Park,
(inactive) (inactive) Incorporated
------------ ------------ ------------
<S>
Capitalization: <C> <C> <C>
Common stockholder's equity:
Common stock $1 $1 $ 5
Capital surplus, paid in 0 0 0
Retained earnings 0 0 51
Accumulated other comprehensive income 0 0 0
------------ ------------ ------------
Total common stockholder's equity 1 1 56
Preferred stock not subject to mandatory
redemption 0 0 0
Preferred stock subject to mandatory
redemption 0 0 0
MIPS Preferred stock 0 0 0
Long-term debt 0 0 0
------------ ------------ ------------
Total capitalization 1 1 56
------------ ------------ ------------
Minority Interest in Common Equity
of Subsidiary 0 0 0
------------ ------------ ------------
Obligations Under Capital Leases 0 0 0
------------ ------------ ------------
Current Liabilities:
Notes payable to affiliated companies 1 0 0
Notes payable to banks 0 0 0
Long-term debt and preferred stock--
current portion 0 0 0
Obligations under capital leases--
current portion 0 0 0
Accounts payable 0 0 0
Accounts payable to affiliated companies 0 0 0
Accrued taxes 0 0 0
Accrued interest 0 0 0
Other 0 0 0
------------ ------------ ------------
1 0 0
------------ ------------ ------------
Deferred Credits:
Accumulated deferred income taxes 0 0 0
Accumulated deferred investment
tax credits 0 0 0
Decommissioning obligation--Millstone 1 0 0 0
Deferred contractual obligations 0 0 0
Other 0 0 0
------------ ------------ ------------
0 0 0
------------ ------------ ------------
Total Capitalization and Liabilities $2 $1 $56
============ ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not included are the following inactive subsidiaries: The Connecticut
Transmission Corporation, The Connecticut Steam Company and
The Nutmeg Power Company.
(b) Not covered by auditors' report.
</TABLE>
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Balance Sheet (b)
Capitalization and Liabilities
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Eliminations Consolidated
------------ ------------
<S> <C> <C>
Capitalization:
Common stockholder's equity:
Common stock $ 7 $ 122,229
Capital surplus, paid in 138,929 664,156
Retained earnings 11,508 210,108
Accumulated other comprehensive income 0 378
------------ ------------
Total common stockholder's equity 150,444 996,871
Preferred stock not subject to mandatory
redemption 0 116,200
Preferred stock subject to mandatory
redemption 0 99,539
MIPS Preferred stock 100,000 0
Long-term debt 103,100 1,793,952
------------ ------------
Total capitalization 353,544 3,006,562
------------ ------------
Minority Interest in Common Equity
of Subsidiary (100,000) 100,000
------------ ------------
Obligations Under Capital Leases 0 68,444
------------ ------------
Current Liabilities:
Notes payable to affiliated companies 1 0
Notes payable to banks 105,000 10,000
Long-term debt and preferred stock--
current portion 0 233,755
Obligations under capital leases--
current portion 0 94,440
Accounts payable 0 121,040
Accounts payable to affiliated companies 11,792 32,758
Accrued taxes 0 19,396
Accrued interest 7,616 31,409
Other 0 34,872
------------ ------------
124,409 577,670
------------ ------------
Deferred Credits:
Accumulated deferred income taxes 0 1,194,722
Accumulated deferred investment
tax credits 0 114,457
Decommissioning obligation--Millstone 1 0 560,500
Deferred contractual obligations 0 277,826
Other 0 150,017
------------ ------------
0 2,297,522
------------ ------------
Total Capitalization and Liabilities $ 377,953 $6,050,198
============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not included are the following inactive subsidiaries: The Connecticut
Transmission Corporation, The Connecticut Steam Company and
The Nutmeg Power Company.
(b) Not covered by auditors' report.
</TABLE>
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES(a)
Consolidating Statement of Income(b)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
The
Connecticut
Light and CL&P Research
Power Receivables CL&P Park,
Company Corporation Capital,L.P. Incorporated
----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Operating Revenues $2,386,864 $ 0 0 $0
----------- ----------- ------------ ------------
Operating Expenses:
Operation--
Fuel, purchased and net
interchange power 887,224 0 0 0
Other 703,451 520 0 0
Maintenance 271,317 0 0 0
Depreciation 216,509 0 0 0
Amortization of regulatory assets, net 120,884 0 0 0
Federal and state income taxes (19,893) 8,250 0 0
Taxes other than income taxes 170,214 133 0 0
----------- ----------- ------------ ------------
Total operating expenses 2,349,706 8,903 0 0
----------- ----------- ------------ ------------
Operating Income (Loss) 37,158 (8,903) 0 0
----------- ----------- ------------ ------------
Other Income:
Deferred nuclear plants return--
other funds 165 0 0 0
Equity in earnings of regional nuclear
generating companies 6,241 0 0 0
Millstone 1--unrecoverable costs (143,239) 0 0 0
Other, net (14,856) 27,856 9,588 0
Minority Interest in income of subsidiary 0 0 0 0
Income taxes 67,127 0 0 0
----------- ----------- ------------ ------------
Other income, net (84,562) 27,856 9,588 0
----------- ----------- ------------ ------------
Income (loss) before interest charges (47,404) 18,953 9,588 0
----------- ----------- ------------ ------------
Interest Charges:
Interest on long-term debt 133,192 0 0 0
Other interest 15,486 7,197 0 0
Deferred nuclear plants return--
borrowed funds (357) 0 0 0
----------- ----------- ------------ ------------
Interest charges, net 148,321 7,197 0 0
----------- ----------- ------------ ------------
Net Income (Loss) $ (195,725) $11,756 9,588 $0
=========== =========== ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not included are the following inactive subsidiaries: Electric Power,Incorporated,
The City and Suburban Electric and Gas Company, The Connecticut Transmission
Corporation, The Connecticut Steam Company and The Nutmeg Power Company.
(b) Not covered by auditors' report.
</TABLE>
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES(a)
Consolidating Statement of Income(b)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Eliminations Consolidated
------------ ------------
<S> <C> <C>
Operating Revenues $ 0 $2,386,864
------------ ------------
Operating Expenses:
Operation--
Fuel, purchased and net
interchange power 0 887,224
Other 0 703,971
Maintenance 0 271,317
Depreciation 0 216,509
Amortization of regulatory assets, net 0 120,884
Federal and state income taxes 0 (11,642)
Taxes other than income taxes 0 170,347
------------ ------------
Total operating expenses 0 2,358,610
------------ ------------
Operating Income (Loss) 0 28,254
------------ ------------
Other Income:
Deferred nuclear plants return--
other funds 0 165
Equity in earnings of regional nuclear
generating companies 0 6,241
Millstone 1--unrecoverable costs 0 (143,239)
Other, net 28,829 (6,240)
Minority Interest in income of subsidiary 9,300 (9,300)
Income taxes 0 67,127
------------ ------------
Other income, net 38,129 (85,246)
------------ ------------
Income (loss) before interest charges 38,129 (56,992)
------------ ------------
Interest Charges:
Interest on long-term debt 0 133,192
Other interest 16,785 5,898
Deferred nuclear plants return--
borrowed funds 0 (357)
------------ ------------
Interest charges, net 16,785 138,733
------------ ------------
Net Income (Loss) $21,344 $ (195,725)
============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not included are the following inactive subsidiaries: Electric
Power,Incorporated, The City and Suburban Electric and Gas Company,
The Connecticut Transmission Corporation, The Connecticut Steam Company
and The Nutmeg Power Company.
(b) Not covered by auditors' report.
</TABLE>
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Statement of Retained Earnings (b)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
The
Connecticut
Light and CL&P Research
Power Receivables CL&P Park,
Company Corporation Capital,L.P. Incorporated
------------ ----------- ------------ ------------
<S> <C> <C> <C> <C>
Balance at beginning of period $419,972 $ (299) $ 0 51
Addition: Net income (loss) (195,725) 11,756 9,588 0
------------ ----------- ------------ ------------
224,247 11,457 9,588 51
Deductions: ------------ ----------- ------------ ------------
Dividends declared:
Preferred stock (at required
annual rates) 14,139 0 0 0
MIPS Partnership distribution 0 0 9,300 0
Cash distribution to The Connecticut Light
and Power Company 0 0 288 0
Loss on the retirement of preferred stock 0 0 0 0
------------ ----------- ------------ ------------
14,139 0 9,588 0
------------ ----------- ------------ ------------
Balance at end of period $210,108 $11,457 $ 0 51
============ =========== ============ ============
</TABLE>
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Statement of
Capital Surplus, Paid In (b)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
The
Connecticut
Light and CL&P Research
Power Receivables CL&P Park,
Company Corporation Capital,L.P. Incorporated
------------ ----------- ------------ ------------
<S> <C> <C> <C> <C>
Balance at beginning of period $641,333 $170,829 $3,100 $0
Capital Contribution from Northeast Utilities 20,000 0 0 0
Reduction of investment in securities 0 (35,000) 0 0
Gain on the repurchase of preferred stock 59 0 0 0
Capital stock expenses, net 2,764 0 0 0
------------ ----------- ------------ ------------
Balance at end of period $664,156 $135,829 $3,100 $0
============ =========== ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not included are the following inactive subsidiaries: Electric Power,Incorporated,
The City and Suburban Electric and Gas Company, The Connecticut Transmission
Corporation, The Connecticut Steam Company and The Nutmeg Power Company.
(b) Not covered by auditors' report.
</TABLE>
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Statement of Retained Earnings (b)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Eliminations Consolidated
------------ ------------
<S> <C> <C>
Balance at beginning of period $ (248) $ 419,972
Addition: Net income (loss) 21,344 (195,725)
------------ ------------
21,096 224,247
Deductions: ------------ ------------
Dividends declared:
Preferred stock (at required
annual rates) 0 14,139
MIPS Partnership distribution 9,300 0
Cash distribution to The Connecticut Light
and Power Company 288 0
Loss on the retirement of preferred stock 0 0
------------ ------------
9,588 14,139
------------ ------------
Balance at end of period $11,508 $ 210,108
============ ============
</TABLE>
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Statement of
Capital Surplus, Paid In (b)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Eliminations Consolidated
------------ ------------
<S> <C> <C>
Balance at beginning of period $173,929 $641,333
Capital Contribution from Northeast Utilities 0 20,000
Reduction of investment in securities (35,000) 0
Gain on the repurchase of preferred stock 0 59
Capital stock expenses, net 0 2,764
------------ ------------
Balance at end of period $138,929 $664,156
============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not included are the following inactive subsidiaries: Electric
Power,Incorporated, The City and Suburban Electric and Gas Company,
The Connecticut Transmission Corporation, The Connecticut Steam
Company and The Nutmeg Power Company.
(b) Not covered by auditors' report.
</TABLE>
THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)(b)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
The
Connecticut CL&P
Light and Receivables CL&P
Power Company Corporation Capital, LP
-------------- ------------ -------------
<S> <C> <C> <C>
Operating Activities:
Net (loss)/income $ (195,725) $ 11,756 $ 9,588
Adjustments to reconcile to net cash
from operating activities:
Depreciation 216,509 0 0
Deferred income taxes and investment tax credits, net (65,689) 0 0
Deferred nuclear plants return (521) 0 0
Amortization of deferred demand-side-management costs 42,085 0 0
Amortization/(deferral) of recoverable energy costs 30,745 0 0
Amortization of cogeneration deferral 29,559 0 0
Amortization of regulatory asset - income taxes 66,027 0 0
Amortization of other regulatory asset 25,298 0 0
Deferred nuclear refueling outage, net of amortization 0 0 0
Millstone 1--unecovered costs 143,239 0 0
Other sources of cash 82,109 0 0
Other uses of cash (23,040) (35,000) 0
Changes in working capital:
Receivables and accrued utility revenues (13,218) (14,268) 0
Fuel, materials, and supplies 9,896 0 0
Accounts payable (63,593) (23,863) 0
Accrued taxes (21,789) 8,168 0
Sale of Receivables and accrued utility revenues 35,000 0 0
Investment in securitizable assets 73,647 10,372 0
Other working capital (excludes cash) 29,883 7,831 0
-------------- ----------- -------------
Net cash flows from/(used for) operating activities 400,422 (35,004) 9,588
-------------- ----------- -------------
Financing Activities:
Issuance of long-term debt 0 0 0
Net (decrease)/increase in short-term debt (86,300) 35,000 0
Reacquisitions and retirements of long-term debt (45,006) 0 0
Reacquisitions and retirements of preferred stock (35,711) 0 0
MIPS partnership distribution 0 0 (9,300)
Cash distribution to CL&P 0 0 (288)
Cash dividends on preferred stock (14,139) 0 0
Cash dividends on common stock 0 0 0
-------------- ----------- -------------
Net cash flows (used for)/from financing activities (181,156) 35,000 (9,588)
-------------- ----------- -------------
Investment Activities:
Investment in plant:
Electric utility plant (132,194) 0 0
Nuclear fuel (8,444) 0 0
-------------- ----------- -------------
Net cash flows (used for) investments in plant (140,638) 0 0
Investment in NU system Money Pool (6,600) 0 0
Investment in nuclear decommissioning trusts (54,106) 0 0
Other investment activities, net (37,943) 0 0
Capital contributions from Northeaset Utilities 20,000 0 0
-------------- ----------- -------------
Net cash flows (used for) investments (219,287) 0 0
-------------- ----------- -------------
Net (decrease)/increase in cash for the period (21) (4) 0
Cash - beginning of period 57 57 288
-------------- ----------- -------------
Cash - end of period $ 36 $ 53 $ 288
============== =========== =============
Supplemental Cash Flow Information
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 119,707 $ 0 $ 0
============== =========== =============
Income taxes $ (46,747) $ 0 $ 0
============== =========== =============
Increase in obligations:
Niantic Bay Fuel Trust and other capital leases $ 4,102 $ 0 $ 0
============== =========== =============
Note: Individual columns may not add to Consolidated financial statements due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not included are the following inactive subsidiaries: Electric Power, Incorporated,
The City and Suburban Electric and Gas Company, The Connecticut Transmission Corporation,
The Connecticut Steam Company and The Nutmeg Power Company.
(b) Not covered by auditors' report.
</TABLE>
THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)(b)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Research
Park,
Incorporated Eliminations Consolidated
------------- ------------- --------------
<S> <C> <C> <C>
Operating Activities:
Net (loss)/income $ 0 $ 21,344 $ (195,725)
Adjustments to reconcile to net cash
from operating activities:
Depreciation 0 0 216,509
Deferred income taxes and investment tax credits, net 0 0 (65,689)
Deferred nuclear plants return 0 0 (521)
Amortization of deferred demand-side-management costs 0 0 42,085
Amortization/(deferral) of recoverable energy costs 0 0 30,745
Amortization of cogeneration deferral 0 0 29,559
Amortization of regulatory asset - income taxes 0 0 66,027
Amortization of other regulatory asset 0 0 25,298
Deferred nuclear refueling outage, net of amortization 0 0 -
Millstone 1--unecovered costs 0 0 143,239
Other sources of cash 0 0 82,109
Other uses of cash 0 (35,000) (23,040)
Changes in working capital:
Receivables and accrued utility revenues 0 (22,400) (5,086)
Fuel, materials, and supplies 0 0 9,896
Accounts payable 0 (23,864) (63,592)
Accrued taxes 0 0 (13,621)
Sale of Receivables and accrued utility revenues 0 0 35,000
Investment in securitizable assets 0 38,647 45,372
Other working capital (excludes cash) 0 7,617 30,097
------------- ------------- --------------
Net cash flows from/(used for) operating activities 0 (13,656) 388,662
------------- ------------- --------------
Financing Activities:
Issuance of long-term debt 0 0 0
Net (decrease)/increase in short-term debt 0 35,000 (86,300)
Reacquisitions and retirements of long-term debt 0 0 (45,006)
Reacquisitions and retirements of preferred stock 0 0 (35,711)
MIPS partnership distribution 0 (9,300) 0
Cash distribution to CL&P 0 (288) 0
Cash dividends on preferred stock 0 0 (14,139)
Cash dividends on common stock 0 0 0
------------- ------------- --------------
Net cash flows (used for)/from financing activities 0 25,412 (181,156)
------------- ------------- --------------
Investment Activities:
Investment in plant:
Electric utility plant 0 0 (132,194)
Nuclear fuel 0 0 (8,444)
------------- ------------- --------------
Net cash flows (used for) investments in plant 0 0 (140,638)
Investment in NU system Money Pool 0 0 (6,600)
Investment in nuclear decommissioning trusts 0 0 (54,106)
Other investment activities, net 0 (11,756) (26,187)
Capital contributions from Northeaset Utilities 20,000
------------- ------------- --------------
Net cash flows (used for) investments 0 (11,756) (207,531)
------------- ------------- --------------
Net (decrease)/increase in cash for the period 0 0 (25)
Cash - beginning of period 56 0 459
------------- ------------- --------------
Cash - end of period $ 56 $ 0 $ 434
============= ============= ==============
Supplemental Cash Flow Information
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 0 $ 9,588 $ 110,119
============= ============= ==============
Income taxes $ 0 $ 0 $ (46,747)
============= ============= ==============
Increase in obligations:
Niantic Bay Fuel Trust and other capital leases $ 0 $ 0 $ 4,102
============= ============= ==============
Note: Individual columns may not add to Consolidated financial statements due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not included are the following inactive subsidiaries: Electric Power, Incorporated,
The City and Suburban Electric and Gas Company, The Connecticut Transmission Corporation,
The Connecticut Steam Company and The Nutmeg Power Company.
(b) Not covered by auditors' report.
</TABLE>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES (a)
Consolidating Balance Sheet (b)
Assets
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Public Service
Company of Properties,
New Hampshire Inc. Eliminations Consolidated
-------------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Utility Plant, at cost:
Electric $1,927,341 $ 201 $ 0 $1,927,541
Other 0 8,588 0 8,588
-------------- ----------- ------------ ------------
1,927,341 8,789 0 1,936,129
Less: Accumulated provision for
depreciation 631,584 2,477 0 634,061
-------------- ----------- ------------ ------------
1,295,757 6,312 0 1,302,068
Unamortized acquisition costs 352,855 0 0 352,855
Construction work in progress 20,735 0 0 20,735
Nuclear fuel, net 1,323 0 0 1,323
-------------- ----------- ------------ ------------
Total net utility plant 1,670,670 6,312 0 1,676,981
-------------- ----------- ------------ ------------
Other Property and Investments:
Nuclear decommissioning trusts,
at market 5,580 0 0 5,580
Investments in regional nuclear
generating companies, at equity 13,352 0 0 13,352
Investments in subsidiary companies,
at equity 6,484 0 6,484 0
Other, at cost 4,319 250 0 4,570
-------------- ----------- ------------ ------------
29,735 250 6,484 23,502
-------------- ----------- ------------ ------------
Current Assets:
Cash and cash equivalents 60,885 831 0 61,716
Receivables, net 89,044 3 0 89,047
Accounts receivable from affiliated
companies 12,018 154 705 11,467
Taxes receivable from affiliated
companies 964 0 0 964
Accrued utility revenues 42,145 0 0 42,145
Fuel, materials, and supplies,
at average cost 36,642 0 0 36,642
Recoverable energy costs--current
portion 65,257 0 0 65,257
Prepayments and other 21,780 32 0 21,812
-------------- ----------- ------------ ------------
328,735 1,020 705 329,050
-------------- ----------- ------------ ------------
Deferred Charges:
Regulatory assets 610,222 0 0 610,222
Unamortized debt expense 13,995 0 0 13,995
Deferred receivable from affiliated
company 22,728 0 0 22,728
Other 5,510 0 0 5,510
-------------- ----------- ------------ ------------
652,455 0 0 652,455
-------------- ----------- ------------ ------------
Total Assets $2,681,595 $7,582 $7,189 $2,681,988
============== =========== ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not included is New Hampshire Electric Company which is an inactive subsidiary.
(b) Not covered by auditors' report.
</TABLE>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES (a)
Consolidating Balance Sheet (b)
Capitalization and Liabilities
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Public Service
Company of Properties,
New Hampshire Inc. Eliminations Consolidated
-------------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Capitalization:
Common stockholder's equity:
Common stock $ 1 $ 1 $ 1 $ 1
Capital surplus, paid in 424,250 0 0 424,250
Retained earnings 252,912 2,571 2,571 252,912
Accumulated other comprehensive
income 1,004 0 0 1,004
-------------- ----------- ------------ ------------
Total common stockholder's equity 678,167 2,572 2,572 678,167
Preferred stock subject to mandatory
redemption 50,000 0 0 50,000
Long-term debt 516,485 3,912 3,912 516,485
-------------- ----------- ------------ ------------
Total capitalization 1,244,652 6,484 6,484 1,244,652
-------------- ----------- ------------ ------------
Obligations Under Seabrook Power
Contracts and Other Capital Leases 703,411 0 0 703,411
-------------- ----------- ------------ ------------
Current Liabilities:
Long-term debt and preferred stock--
current portion 25,000 0 0 25,000
Obligations under Seabrook Power
Contracts and other capital
leases--current portion 138,812 0 0 138,812
Accounts payable 26,227 0 0 26,227
Accounts payable to affiliated
companies 28,410 551 705 28,256
Accrued taxes 82,743 325 0 83,068
Accrued interest 5,894 0 0 5,894
Accrued pension benefits 46,004 0 0 46,004
Other 8,540 0 0 8,540
-------------- ----------- ------------ ------------
361,630 876 705 361,801
-------------- ----------- ------------ ------------
Deferred Credits:
Accumulated deferred income taxes 225,091 222 0 225,313
Accumulated deferred investment
tax credits 3,460 0 0 3,460
Deferred contractual obligations 66,400 0 0 66,400
Deferred revenue from affiliated
company 22,728 0 0 22,728
Other 54,223 0 0 54,223
-------------- ----------- ------------ ------------
371,902 222 0 372,124
-------------- ----------- ------------ ------------
Total Capitalization and Liabilities $2,681,595 $7,582 $7,189 $2,681,988
============== =========== ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not included is New Hampshire Electric Company which is an inactive subsidiary.
(b) Not covered by auditors' report.
</TABLE>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES (a)
Consolidating Statement of Income (b)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Public Service
Company of Properties,
New Hampshire Inc. Eliminations Consolidated
--------------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Operating Revenues $1,087,247 $1,287 $1,287 $1,087,247
--------------- ----------- ------------ ------------
Operating Expenses:
Operation--
Fuel, purchased and net interchange
power 322,071 0 0 322,071
Other 402,012 5 1,287 400,730
Maintenance 51,734 0 0 51,734
Depreciation 45,342 0 0 45,342
Amortization of regulatory assets, net 26,758 0 0 26,758
Federal and state income taxes 65,079 (287) 0 64,792
Taxes other than income taxes 43,052 129 0 43,181
--------------- ----------- ------------ ------------
Total operating expenses 956,048 (153) 1,287 954,608
--------------- ----------- ------------ ------------
Operating Income 131,199 1,440 0 132,639
--------------- ----------- ------------ ------------
Other Income:
Equity in earnings of regional nuclear
generating companies 1,577 0 0 1,577
Other, net 10,294 (81) 1,359 8,854
Income taxes (7,473) 0 0 (7,473)
--------------- ----------- ------------ ------------
Other income (loss), net 4,398 (81) 1,359 2,958
--------------- ----------- ------------ ------------
Income before interest charges 135,597 1,359 1,359 135,597
--------------- ----------- ------------ ------------
Interest Charges:
Interest on long-term debt 43,317 0 0 43,317
Other interest 594 287 287 594
--------------- ----------- ------------ ------------
Interest charges, net 43,911 287 287 43,911
--------------- ----------- ------------ ------------
Net Income $ 91,686 $1,072 $1,072 $ 91,686
=============== =========== ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not included is New Hampshire Electric Company which is an inactive subsidiary.
(b) Not covered by auditors' report.
</TABLE>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES (a)
Consolidating Statement of Retained Earnings (b)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Public Service
Company of Properties,
New Hampshire Inc. Eliminations Consolidated
-------------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Balance at beginning of period $170,501 $1,499 $1,499 $170,501
Addition: Net income 91,686 1,072 1,072 91,686
-------------- ----------- ------------ ------------
262,187 2,571 2,571 262,187
Deductions:
Dividends declared:
Preferred Stock 9,275 0 0 9,275
-------------- ----------- ------------ ------------
Total deductions 9,275 0 0 9,275
-------------- ----------- ------------ ------------
Balance at end of period $252,912 $2,571 $2,571 $252,912
============== =========== ============ ============
</TABLE>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES (a)
Consolidating Statement of Capital Surplus, Paid In (b)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Public Service
Company of Properties,
New Hampshire Inc. Eliminations Consolidated
-------------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Balance at beginning of period $423,713 $0 $0 $423,713
Capital stock expenses, net 537 0 0 537
-------------- ----------- ------------ ------------
Balance at end of period $424,250 $0 $0 $424,250
============== =========== ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not included is New Hampshire Electric Company which is an inactive subsidiary.
(b) Not covered by auditors' report.
</TABLE>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a) (b)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Public Service
Company of Properties,
New Hampshire Inc.
--------------- -------------
<S> <C> <C>
Operating Activities:
Net income $ 91,686 $ 1,072
Adjustments to reconcile to net cash
from operating activities:
Depreciation 45,342 0
Deferred income taxes and investment tax credits, net 78,366 (7)
Recoverable energy costs, net of amortization 2,065 0
Amortization of other regulatory assets 10,187 0
Amortization of acquisition costs 49,431 0
Amortization of regulatory liability (32,860) 0
Other sources of cash 32,255 119
Other uses of cash (85,202) 0
Changes in working capital:
Receivables and accrued utility revenues 21,536 (22)
Fuel, materials, and supplies 3,519 0
Accounts payable 729 110
Accrued taxes 13,298 (19)
Other working capital (excludes cash) (13,710) (4)
------------- -----------
Net cash flows from operating activities 216,642 1,249
------------- -----------
Financing Activities:
Reacquisitions and retirements of long-term debt (170,000) (604)
Reacquisitions and retirements of preferred stock (25,000) 0
Cash dividends on preferred stock (9,275) 0
Cash dividends on common stock 0 0
------------- -----------
Net cash flows (used for) financing activities (204,275) (604)
------------- -----------
Investment Activities:
Investment in plant:
Electric utility plant (43,780) 0
Nuclear fuel (307) 0
------------- -----------
Net cash flows used for investments in plant (44,087) 0
Investment in NU system money pool - 0
Investment in nuclear decommissioning trusts (641) 0
Other investment activities, net (1,213) 0
------------- -----------
Net cash flows (used for) investments (45,941) 0
------------- -----------
Net (decrease)/increase in cash for the period (33,574) 645
Cash and cash equivalent - beginning of period 94,459 186
------------- -----------
Cash and cash equivalent - end of period $ 60,885 $ 831
============= ===========
Supplemental Cash Flow Information
Cash paid during the year for:
Interest, net of amounts capitalized $ 46,277 $ 287
============= ===========
Income taxes $ 18,948 $ (254)
============= ===========
Increase in obligations:
Seabrook Power Contracts and other capital leases $ (78,939) $ 0
============= ===========
Note: Individual columns may not add to Consolidated financial statements due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not included is New Hampshire Electric Company which is an inactive subsidiary.
(b) Not covered by auditors' report.
</TABLE>
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a) (b)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Eliminations Consolidated
------------- -------------
<S> <C> <C>
Operating Activities:
Net income $ 1,072 $ 91,686
Adjustments to reconcile to net cash
from operating activities:
Depreciation 0 45,342
Deferred income taxes and investment tax credits, net 0 78,359
Recoverable energy costs, net of amortization 0 2,065
Amortization of other regulatory assets 0 10,187
Amortization of acquisition costs 0 49,431
Amortization of regulatory liability 0 (32,860)
Other sources of cash 0 32,374
Other uses of cash 0 (85,202)
Changes in working capital:
Receivables and accrued utility revenues (436) 21,948
Fuel, materials, and supplies 0 3,519
Accounts payable 435 404
Accrued taxes 0 13,279
Other working capital (excludes cash) 0 (13,714)
----------- -----------
Net cash flows from operating activities 1,071 216,818
----------- -----------
Financing Activities:
Reacquisitions and retirements of long-term debt (604) (170,000)
Reacquisitions and retirements of preferred stock 0 (25,000)
Cash dividends on preferred stock 0 (9,275)
Cash dividends on common stock 0 0
----------- -----------
Net cash flows (used for) financing activities (604) (204,275)
----------- -----------
Investment Activities:
Investment in plant:
Electric utility plant 0 (43,780)
Nuclear fuel 0 (307)
----------- -----------
Net cash flows used for investments in plant 0 (44,087)
Investment in NU system money pool 0 0
Investment in nuclear decommissioning trusts 0 (641)
Other investment activities, net (467) (746)
----------- -----------
Net cash flows (used for) investments (467) (45,474)
----------- -----------
Net (decrease)/increase in cash for the period 0 (32,931)
Cash and cash equivalent - beginning of period 0 94,647
----------- -----------
Cash and cash equivalent - end of period $ 0 $ 61,716
=========== ===========
Supplemental Cash Flow Information
Cash paid during the year for:
Interest, net of amounts capitalized $ 287 $ 46,277
============ ============
Income taxes $ 0 $ 18,694
============ ============
Increase in obligations:
Seabrook Power Contracts and other capital leases $ (78,939) $ 0
============ ============
Note: Individual columns may not add to Consolidated financial statements due to rounding.
The accompanying notes are an integral part of thesE financial statements.
(a) Not included is New Hampshire Electric Company which is an inactive subsidiary.
(b) Not covered by auditors' report.
</TABLE>
HOLYOKE WATER POWER COMPANY
AND SUBSIDIARY
Consolidating Balance Sheet (a)
Assets
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Holyoke Holyoke
Water Power and
Power Electric
Company Company Eliminations Consolidated
-------- --------- ------------ ------------
<S> <C> <C> <C> <C>
Utility Plant, at original cost:
Electric $95,870 $1,418 $ 0 $97,288
Less: Accumulated provision for
depreciation 44,033 985 0 45,018
-------- --------- ------------ ------------
51,837 433 0 52,270
Construction work in progress 3,142 0 0 3,142
-------- --------- ------------ ------------
Total net utility plant 54,979 433 0 55,412
-------- --------- ------------ ------------
Other Property and Investments:
Investments in subsidiary company, at
equity 839 0 839 0
Other, at cost 3,476 0 0 3,476
-------- --------- ------------ ------------
4,315 0 839 3,476
-------- --------- ------------ ------------
Current Assets:
Cash 1 3,654 0 3,655
Notes receivables from affiliated companies 10,100 0 0 10,100
Receivables, net 2,714 30 0 2,744
Accounts receivable from affiliated companies 8,023 3,853 11,786 90
Taxes receivable 0 200 0 200
Fuel, materials, and supplies, at average cost 6,727 0 0 6,727
Prepayments and other 196 23 0 219
-------- --------- ------------ ------------
27,761 7,760 11,786 23,735
-------- --------- ------------ ------------
Deferred Charges:
Regulatory assets 1,503 114 261 1,356
Unamortized debt expense 843 0 0 843
Accumulated deferred income taxes 0 139 139 0
Other 373 0 0 373
-------- --------- ------------ ------------
2,719 253 400 2,572
-------- --------- ------------ ------------
Total Assets $89,774 $8,446 $13,025 $85,195
======== ========= ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
HOLYOKE WATER POWER COMPANY
AND SUBSIDIARY
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Holyoke Holyoke
Water Power and
Power Electric
Company Company Eliminations Consolidated
-------- --------- ------------ ------------
<S> <C> <C> <C> <C>
Capitalization:
Common stockholder's equity:
Common stock $ 2,400 $ 485 $ 485 $ 2,400
Capital surplus, paid in 6,000 0 0 6,000
Retained earnings 13,592 (153) (153) 13,592
Accumulated other comprehensive income (5) 0 0 (5)
-------- --------- ------------ ------------
Total common stockholder's equity 21,987 332 332 21,987
Long-term debt 38,300 424 424 38,300
-------- --------- ------------ ------------
Total capitalization 60,287 756 756 60,287
-------- --------- ------------ ------------
Current Liabilities:
Accounts payable 2,063 0 0 2,063
Accounts payable to affiliated companies 4,667 7,311 11,786 192
Accrued taxes 2,667 0 0 2,667
Accrued interest 314 0 0 314
Accrued pension benefits 304 0 0 304
Other 236 18 0 254
-------- --------- ------------ ------------
10,251 7,329 11,786 5,794
-------- --------- ------------ ------------
Deferred Credits:
Accumulated deferred income taxes 11,722 0 139 11,583
Accumulated deferred investment tax credits 2,429 17 0 2,446
Deferred credit--SFAS 109 0 261 261 0
Other 5,085 83 83 5,085
-------- --------- ------------ ------------
19,236 361 483 19,114
-------- --------- ------------ ------------
Total Capitalization and Liabilities $89,774 $8,446 $13,025 $85,195
======== ========= ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
HOLYOKE WATER POWER COMPANY
AND SUBSIDIARY
Consolidating Statement of Income (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Holyoke Holyoke
Water Power and
Power Electric
Company Company Eliminations Consolidated
-------- --------- ------------ ------------
<S> <C> <C> <C> <C>
Operating Revenues $73,452 $39,499 $71,201 $41,750
-------- --------- ------------ ------------
Operating Expenses:
Operation--
Fuel, purchased and net
interchange power 38,489 24,563 43,116 19,937
Other 17,839 14,892 28,085 4,646
Maintenance 4,912 0 0 4,912
Depreciation 2,056 11 0 2,067
Amortization of reg. assets, net (1) 0 0 (1)
Federal and state income taxes 1,561 (663) 0 898
Taxes other than income taxes 3,773 38 0 3,810
-------- --------- ------------ ------------
Total operating expenses 68,629 38,841 71,201 36,269
-------- --------- ------------ ------------
Operating Income 4,823 658 0 5,481
-------- --------- ------------ ------------
Other Income:
Other, net 531 (1) 665 (135)
Income taxes 155 8 0 163
-------- --------- ------------ ------------
Other income, net 686 7 665 28
-------- --------- ------------ ------------
Income before interest charges 5,509 665 665 5,509
-------- --------- ------------ ------------
Interest Charges:
Interest on long-term debt 1,569 0 0 1,569
Other interest 9 20 20 9
-------- --------- ------------ ------------
Interest charges, net 1,578 20 20 1,578
-------- --------- ------------ ------------
Net Income $3,931 $ 645 $ 645 $ 3,931
======== ========= ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
HOLYOKE WATER POWER COMPANY AND SUBSIDIARY
Consolidating Statement of Retained Earnings(a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Holyoke Holyoke
Water Power and
Power Electric
Company Company Eliminations Consolidated
-------- --------- ------------ ------------
<S> <C> <C> <C> <C>
Balance at beginning of period $ 9,661 $(798) $(798) $ 9,661
Addition: Net income 3,931 645 645 3,931
-------- --------- ------------ ------------
Balance at end of period $13,592 $(153) $(153) $13,592
======== ========= ============ ============
</TABLE>
HOLYOKE WATER POWER COMPANY AND SUBSIDIARY
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Holyoke Holyoke
Water Power and
Power Electric
Company Company Eliminations Consolidated
------- --------- ------------ ------------
<S> <C> <C> <C> <C>
Balance at beginning of period $6,000 $0 $0 $6,000
0 0 0 0
------- --------- ------------ ------------
Balance at end of period $6,000 $0 $0 $6,000
======= ========= ============ ============
Note: Individual companies may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
HOLYOKE WATER POWER COMPANY AND SUBSIDIARY
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Holyoke
Holyoke Power and
Water Power Electric
Company Company
------------- ------------
<S> <C> <C>
Operating Activities:
Net income $ 3,931 $ 645
Adjustments to reconcile to net cash
from operating activities:
Depreciation 2,056 11
Deferred income taxes, net 740 (14)
Other sources of cash 316 133
Other uses of cash (486) (115)
Changes in working capital:
Receivables, net (4,470) (708)
Fuel, materials, and supplies (633) 0
Accounts payable (360) 4,584
Accrued taxes 2,421 (672)
Other working capital (excludes cash) (856) (219)
------------- ------------
Net cash flows from operating activities 2,659 3,645
------------- ------------
Investment Activities:
Investment in plant:
Electric utility plant (1,045) 0
Investment in NU system money pool (950) 0
Other investment activities, net (664) 0
------------- ------------
Net cash flows (used for) investments (2,659) 0
------------- ------------
Net increase in cash for the period 0 3,645
Cash - beginning of period 1 9
------------- ------------
Cash - end of period $ 1 $ 3,654
============= ============
Supplemental Cash Flow Information
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 1,358 $ 21
============= ============
Income taxes $ (501) $ 216
============= ============
Note: Individual columns may not add to Consolidated financial statements due to rounding.
The acompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
HOLYOKE WATER POWER COMPANY AND SUBSIDIARY
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Eliminations Consolidated
------------- -------------
<S> <C> <C>
Operating Activities:
Net income $ 645 $ 3,931
Adjustments to reconcile to net cash
from operating activities:
Depreciation 0 2,067
Deferred income taxes, net (1) 727
Other sources of cash 133 316
Other uses of cash (113) (489)
Changes in working capital:
Receivables, net (5,547) 370
Fuel, materials, and supplies 0 (633)
Accounts payable 5,887 (1,663)
Accrued taxes (340) 2,089
Other working capital (excludes cash) 1 (1,076)
------------- -------------
Net cash flows from operating activities 665 5,639
------------- -------------
Investment Activities:
Investment in plant:
Electric utility plant 0 (1,045)
Investment in NU system money pool 0 (950)
Other investment activities, net (665) 1
------------- -------------
Net cash flows (used for) investments (665) (1,994)
------------- -------------
Net increase in cash for the period 0 3,645
Cash - beginning of period 0 10
------------- -------------
Cash - end of period $ 0 $ 3,655
============= =============
Supplemental Cash Flow Information
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 21 $ 1,358
============= =============
Income taxes $ 0 $ (285)
============= =============
Note: Individual columns may not add to Consolidated financial statements due to rounding.
The acompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
CHARTER OAK ENERGY INCORPORATED
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
COE Argentina I
Charter Oak COE Development Corporation
Energy, Inc. Corporation (b)
------------ --------------- ---------------
<S> <C> <C> <C>
Utility Plant, at original cost:
Electric $ 40 $ 11 $0
Less: Accumulated provision for
depreciation 40 11 0
------------ --------------- ---------------
0 0 0
Construction work in progress 0 0 0
------------ --------------- ---------------
Total net utility plant 0 0 0
------------ --------------- ---------------
Other Property and Investments:
Investments in subsidiary companies,
at equity 2,977 0 0
------------ --------------- ---------------
Current Assets:
Cash 562 155 0
Receivables, net 0 208 0
Receivables from affiliated companies 0 1,189 0
Taxes receivable 447 1,287 0
Investments held for sale 6,178 0 0
------------ --------------- ---------------
7,187 2,839 0
------------ --------------- ---------------
Deferred Charges:
Accumulated deferred income taxes 652 229 0
Other 223 0 0
------------ --------------- ---------------
875 229 0
------------ --------------- ---------------
Total Assets $11,039 $3,068 $0
============ =============== ===============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) Subsidiary was dissolved on June 30, 1998.
(c) Subsidiary was sold on May 5, 1998.
</TABLE>
CHARTER OAK ENERGY INCORPORATED
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
COE Tejona
COE Argentina II Corporation COE Ave Fenix
Corp. (c) Corporation
---------------- ----------- -------------
<S> <C> <C> <C>
Utility Plant, at original cost:
Electric $ 0 $0 $ 0
Less: Accumulated provision for
depreciation 0 0 0
---------------- ----------- -------------
0 0 0
Construction work in progress 0 0 7
---------------- ----------- -------------
Total net utility plant 0 0 7
---------------- ----------- -------------
Other Property and Investments:
Investments in subsidiary companies,
at equity 0 0 0
---------------- ----------- -------------
Current Assets:
Cash 11 0 26
Receivables, net 0 0 0
Receivables from affiliated companies 0 0 0
Taxes receivable 1,168 0 13
Investments held for sale 0 0 0
---------------- ----------- -------------
1,179 0 39
---------------- ----------- -------------
Deferred Charges:
Accumulated deferred income taxes 0 0 1,018
Other 0 0 0
---------------- ----------- -------------
0 0 1,018
---------------- ----------- -------------
Total Assets $1,179 $0 $1,064
================ =========== =============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) Subsidiary was dissolved on June 30, 1998.
(c) Subsidiary was sold on May 5, 1998.
</TABLE>
CHARTER OAK ENERGY INCORPORATED
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Eliminations Consolidated
------------ ------------
<S> <C> <C>
Utility Plant, at original cost:
Electric $ 0 $ 51
Less: Accumulated provision for
depreciation 0 51
------------ ------------
0 0
Construction work in progress 0 7
------------ ------------
Total net utility plant 0 7
------------ ------------
Other Property and Investments:
Investments in subsidiary companies,
at equity 2,977 0
------------ ------------
Current Assets:
Cash 0 755
Receivables, net 0 208
Receivables from affiliated companies 1,189 0
Taxes receivable 0 2,915
Investments held for sale 0 6,178
------------ ------------
1,189 10,056
------------ ------------
Deferred Charges:
Accumulated deferred income taxes 0 1,898
Other 0 223
------------ ------------
0 2,121
------------ ------------
Total Assets $4,166 $12,184
============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) Subsidiary was dissolved on June 30, 1998.
(c) Subsidiary was sold on May 5, 1998.
</TABLE>
CHARTER OAK ENERGY INCORPORATED
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
COE Argentina I
Charter Oak COE Development Corporation
Energy, Inc. Corporation (b)
------------ --------------- ---------------
<S> <C> <C> <C>
Capitalization:
Common stockholder's equity:
Common stock $ 0 $ 0 $0
Capital surplus, paid in 92,744 19,073 0
Retained earnings (83,204) (16,018) 0
------------ --------------- ---------------
Total common stockholder's equity 9,540 3,055 0
------------ --------------- ---------------
Total capitalization 9,540 3,055 0
------------ --------------- ---------------
Current Liabilities:
Accounts payable 299 0 0
Accounts payable to affiliated
companies 1,197 0 0
Other 2 0 0
------------ --------------- ---------------
1,498 0 0
------------ --------------- ---------------
Other Deferred Credits 1 13 0
------------ --------------- ---------------
Total Capitalization and Liabilities $ 11,039 $ 3,068 $0
============ =============== ===============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) Subsidiary was dissolved on June 30, 1998.
(c) Subsidiary was sold on May 5, 1998.
</TABLE>
CHARTER OAK ENERGY INCORPORATED
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
COE Tejona
COE Argentina II Corporation COE Ave Fenix
Corp. (c) Corporation
---------------- ----------- -------------
<S> <C> <C> <C>
Capitalization:
Common stockholder's equity:
Common stock $ 0 $0 $ 0
Capital surplus, paid in 2,721 0 56,709
Retained earnings (1,542) 0 (57,965)
---------------- ----------- -------------
Total common stockholder's equity 1,179 0 (1,256)
---------------- ----------- -------------
Total capitalization 1,179 0 (1,256)
---------------- ----------- -------------
Current Liabilities:
Accounts payable 0 0 0
Accounts payable to affiliated
companies 0 0 21
Other 0 0 2,299
---------------- ----------- -------------
0 0 2,320
---------------- ----------- -------------
Other Deferred Credits 0 0 0
---------------- ----------- -------------
Total Capitalization and Liabilities $ 1,179 $0 $ 1,064
================ =========== =============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) Subsidiary was dissolved on June 30, 1998.
(c) Subsidiary was sold on May 5, 1998.
</TABLE>
CHARTER OAK ENERGY INCORPORATED
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Eliminations Consolidated
------------ ------------
<S> <C> <C>
Capitalization:
Common stockholder's equity:
Common stock $ 0 $ 0
Capital surplus, paid in 78,503 92,744
Retained earnings (75,525) (83,204)
------------ ------------
Total common stockholder's equity 2,978 9,540
------------ ------------
Total capitalization 2,978 9,540
------------ ------------
Current Liabilities:
Accounts payable 0 299
Accounts payable to affiliated
companies 1,188 30
Other 0 2,301
------------ ------------
1,188 2,630
------------ ------------
Other Deferred Credits 0 14
------------ ------------
Total Capitalization and Liabilities $ 4,166 $ 12,184
============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) Subsidiary was dissolved on June 30, 1998.
(c) Subsidiary was sold on May 5, 1998.
</TABLE>
CHARTER OAK ENERGY, INC.
AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
COE
Charter Oak Development
Energy, Inc. Corporation
------------ -----------
<S> <C> <C>
Operating Revenues $ 0 $ 0
------------ -----------
Operating Expenses:
Operation 2,003 (83)
Maintenance 1 0
Federal and state income taxes 807 36
Taxes other than income taxes 15 (11)
------------ -----------
Total operating expenses 2,826 (58)
------------ -----------
Operating Income (Loss) (2,826) 58
------------ -----------
Other Income:
Gain on sale of investments 3,978 0
Reserve for the loss on sale of
COE Ave Fenix Invest. in Ave
Fenix Energia 0 0
Other, Net (26,227) 0
------------ -----------
Other income (loss), net (22,249) 0
------------ -----------
Income (loss) before
interest charges (25,075) 58
------------ -----------
Interest Charges 0 0
------------ -----------
Net Income (Loss) $(25,075) $ 58
============ ===========
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) Subsidiary was dissolved on June 30, 1998.
(c) Subsidiary was sold on May 5, 1998.
</TABLE>
CHARTER OAK ENERGY, INC.
AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
COE Argentina I COE Tejona
Corp. COE Argentina II Corporation
(b) Corp. (c)
--------------- ---------------- -----------
<S> <C> <C> <C>
Operating Revenues $0 $ 0 $ 0
--------------- ---------------- -----------
Operating Expenses:
Operation 0 (10) 27
Maintenance 0 0 0
Federal and state income taxes 0 59 3
Taxes other than income taxes 0 (43) 4
--------------- ---------------- -----------
Total operating expenses 0 6 34
--------------- ---------------- -----------
Operating Income (Loss) 0 (6) (34)
--------------- ---------------- -----------
Other Income:
Gain on sale of investments 0 0 0
Reserve for the loss on sale of
COE Ave Fenix Invest. in Ave
Fenix Energia 0 0 0
Other, Net 0 0 (718)
--------------- ---------------- -----------
Other income (loss), net 0 0 (718)
--------------- ---------------- -----------
Income (loss) before
interest charges 0 (6) (752)
--------------- ---------------- -----------
Interest Charges 0 $ 0 $ 0
--------------- ---------------- -----------
Net Income (Loss) $0 (6) (752)
=============== ================ ===========
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) Subsidiary was dissolved on June 30, 1998.
(c) Subsidiary was sold on May 5, 1998.
</TABLE>
CHARTER OAK ENERGY, INC.
AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
COE Ave Fenix
Corporation Eliminations Consolidated
------------- ------------ ------------
<S> <C> <C> <C>
Operating Revenues $ 0 $ 0 $ 0
------------- ------------ ------------
Operating Expenses:
Operation 58 0 1,994
Maintenance 0 0 1
Federal and state income taxes (481) 0 425
Taxes other than income taxes (23) 0 (57)
------------- ------------ ------------
Total operating expenses (446) 0 2,363
------------- ------------ ------------
Operating Income (Loss) 446 0 (2,363)
------------- ------------ ------------
Other Income:
Gain on sale of investments 0 0 3,978
Reserve for the loss on sale of
COE Ave Fenix Invest. in Ave
Fenix Energia (20,000) (20,000)
Other, Net (6,216) (26,472) (6,690)
------------- ------------ ------------
Other income (loss), net (26,216) (26,472) (22,712)
------------- ------------ ------------
Income (loss) before
interest charges (25,770) (26,472) (25,075)
------------- ------------ ------------
Interest Charges 0 0 0
------------- ------------ ------------
Net Income (Loss) $(25,770) $(26,472) $(25,075)
============= ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) Subsidiary was dissolved on June 30, 1998.
(c) Subsidiary was sold on May 5, 1998.
</TABLE>
CHARTER OAK ENERGY, INC.
AND SUBSIDIARIES
Consolidating Statement of
Retained Earnings (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
COE
Charter Oak Development
Energy, Inc. Corporation
------------ -----------
<S> <C> <C>
Balance at beginning of period $(58,129) $(16,076)
Addition: Net income (loss) (25,075) 58
------------ -----------
(83,204) (16,018)
Deductions:
Close out of retained earnings due
to sale of subsidiaries 0 0
------------ -----------
Balance at end of period $(83,204) $(16,018)
============ ===========
</TABLE>
CHARTER OAK ENERGY, INC.
AND SUBSIDIARIES
Consolidating Statement of
Capital Surplus, Paid In (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
COE
Charter Oak Development
Energy, Inc. Corporation
------------ -----------
<S> <C> <C>
Balance at beginning of period $102,344 $19,173
Capital contributions from
Northeast Utilities 9,800 0
Charter Oak Energy, Inc. 0 150
Dividend declared on common shares:
$194,000.00 per share (19,400) 0
$7,500.00 per share 0 0
$2,500.00 per share 0 (250)
Close out of capital surplus, paid in
due to sale of subsidiaries 0 0
------------ -----------
Balance at end of period $ 92,744 $19,073
============ ===========
Note: Individual companies may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) Subsidiary was dissolved on June 30, 1998.
(C) Subsidiary was sold on May 5, 1998.
</TABLE>
CHARTER OAK ENERGY, INC.
AND SUBSIDIARIES
Consolidating Statement of
Retained Earnings (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
COE Argentina I COE Tejona
Corp. COE Argentina II Corporation
(b) Corp. (c)
--------------- ---------------- ------------
<S> <C> <C> <C>
Balance at beginning of period $0 $(1,536) $ 514
Addition: Net income (loss) 0 (6) (752)
--------------- ---------------- ------------
0 (1,542) (238)
Deductions:
Close out of retained earnings due
to sale of subsidiaries 0 0 (240)
--------------- ---------------- ------------
Balance at end of period $0 $(1,542) $ 2
=============== ================ ============
</TABLE>
CHARTER OAK ENERGY, INC.
AND SUBSIDIARIES
Consolidating Statement of
Capital Surplus, Paid In (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
COE Argentina I COE Tejona
Corp. COE Argentina II Corporation
(b) Corp. (c)
--------------- ---------------- ------------
<S> <C> <C> <C>
Balance at beginning of period $ 10 $3,434 $ 15,512
Capital contributions from
Northeast Utilities 0 0 0
Charter Oak Energy, Inc. 0 0 0
Dividend declared on common shares:
$194,000.00 per share 0 0 0
$7,500.00 per share 0 (713) 0
$2,500.00 per share 0 0 0
Close out of capital surplus, paid in
due to sale of subsidiaries (10) 0 (15,512)
--------------- ---------------- ------------
Balance at end of period $ 0 $2,721 $ 0
=============== ================ ============
Note: Individual companies may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) Subsidiary was dissolved on June 30, 1998.
(c) Subsidiary was sold on May 5, 1998.
</TABLE>
CHARTER OAK ENERGY, INC.
AND SUBSIDIARIES
Consolidating Statement of
Retained Earnings (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
COE Ave Fenix
Corporation Eliminations Consolidated
------------- ------------ ------------
<S> <C> <C> <C>
Balance at beginning of period $(32,195) $(49,293) $(58,129)
Addition: Net income (loss) (25,770) (26,472) (25,075)
------------- ------------ ------------
(57,965) (75,765) (83,204)
Deductions:
Close out of retained earnings due
to sale of subsidiaries 0 (240) 0
------------- ------------ ------------
Balance at end of period $(57,965) $(75,525) $(83,204)
============= ============ ============
</TABLE>
CHARTER OAK ENERGY, INC.
AND SUBSIDIARIES
Consolidating Statement of
Capital Surplus, Paid In (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
COE Ave Fenix
Corporation Eliminations Consolidated
------------- ------------ ------------
<S> <C> <C> <C>
Balance at beginning of period $54,490 $ 92,620 $102,344
Capital contributions from
Northeast Utilities 0 0 9,800
Charter Oak Energy, Inc. 2,219 2,368 0
Dividend declared on common shares:
$194,000.00 per share 0 0 (19,400)
$7,500.00 per share 0 (713) 0
$2,500.00 per share 0 (250) 0
Close out of capital surplus, paid in
due to sale of subsidiaries 0 (15,522) 0
------------- ------------ ------------
Balance at end of period $56,709 $ 78,503 $ 92,744
============= ============ ============
Note: Individual companies may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) Subsidiary was dissolved on June 30, 1998.
(c) Subsidiary was sold on May 5, 1998.
</TABLE>
CHARTER OAK ENERGY AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Charter Oak
Charter Oak Development
Energy, Inc. Corporation
------------- ------------
<S> <C> <C>
Operating Activities:
Net (loss)/income $ (25,075) $ 58
Adjustments to reconcile to net cash
from operating activities:
Depreciation 0 0
Deferred income taxes 84 0
Other sources of cash 123 67
Other uses of cash (695) 0
Changes in working capital:
Accounts receivable 14 (171)
Accounts payable 238 (550)
Accrued taxes 0 0
Other working capital (excludes cash) 797 917
------------- ------------
Net cash flows (used for)/from operating activities (24,514) 321
------------- ------------
Financing Activities:
Other paid in capital (9,600) (100)
Cash dividends on common stock 0 0
------------- ------------
Net cash flows (used for) financing activities (9,600) (100)
------------- ------------
Investment Activities:
Investment in plant:
Electric and other utility plant 3 (66)
Other investments 34,172 0
------------- ------------
Net cash flows (used for)/from investments 34,175 (66)
------------- ------------
Net increase/(decrease) in cash for the period 61 155
Cash - beginning of period 501 0
------------- ------------
Cash - end of period $ 562 $ 155
============= ============
Supplemental Cash Flow Information
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 0 $ 0
============= ============
Income taxes $ 408 $ (892)
============= ============
Note: Individual columns may not add to Consolidated financial statements due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
CHARTER OAK ENERGY AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
COE
Argentina I
Corp.
-------------
<S> <C>
Operating Activities:
Net (loss)/income $ 0
Adjustments to reconcile to net cash
from operating activities:
Depreciation 0
Deferred income taxes 0
Other sources of cash 0
Other uses of cash 0
Changes in working capital:
Accounts receivable 0
Accounts payable 0
Accrued taxes 0
Other working capital (excludes cash) 0
-------------
Net cash flows (used for)/from operating activities 0
-------------
Financing Activities:
Other paid in capital (10)
Cash dividends on common stock 0
-------------
Net cash flows (used for) financing activities (10)
-------------
Investment Activities:
Investment in plant:
Electric and other utility plant 0
Other investments 0
-------------
Net cash flows (used for)/from investments 0
-------------
Net increase/(decrease) in cash for the period (10)
Cash - beginning of period 10
-------------
Cash - end of period $ 0
=============
Supplemental Cash Flow Information
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 0
=============
Income taxes $ 0
=============
Note: Individual columns may not add to Consolidated financial statements due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
CHARTER OAK ENERGY AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
COE COE COE Ave
Argentina II Tejona Fenix
Corp. Corp. Corp.
------------- ------------- ------------
<S> <C> <C> <C>
Operating Activities:
Net (loss)/income $ (6) $ (752) $ (25,770)
Adjustments to reconcile to net cash
from operating activities:
Depreciation 0 0 0
Deferred income taxes 0 0 (466)
Other sources of cash 0 0 4,335
Other uses of cash 0 (57) 0
Changes in working capital:
Accounts receivable 0 0 0
Accounts payable 6 (21) 11
Accrued taxes 0 0 (25)
Other working capital (excludes cash) (279) 26 2,286
------------- ------------- ------------
Net cash flows (used for)/from operating activities (279) (804) (19,629)
------------- ------------- ------------
Financing Activities:
Other paid in capital (713) (15,512) 2,219
Cash dividends on common stock 0 238 0
------------- ------------- ------------
Net cash flows (used for) financing activities (713) (15,274) 2,219
------------- ------------- ------------
Investment Activities:
Investment in plant:
Electric and other utility plant 0 0 0
Other investments 0 15,984 17,407
------------- ------------- ------------
Net cash flows (used for)/from investments 0 15,984 17,407
------------- ------------- ------------
Net increase/(decrease) in cash for the period (992) (94) (3)
Cash - beginning of period 1,003 94 29
------------- ------------- ------------
Cash - end of period $ 11 $ 0 $ 26
============= ============= ============
Supplemental Cash Flow Information
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 0 $ 0 $ 0
============= ============= ============
Income taxes $ 296 $ (1) $ 0
============= ============= ============
Note: Individual columns may not add to Consolidated financial statements due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
CHARTER OAK ENERGY AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Eliminations Consolidated
------------- -------------
<S> <C> <C>
Operating Activities:
Net (loss)/income $ (26,470) $ (25,075)
Adjustments to reconcile to net cash
from operating activities:
Depreciation 0 0
Deferred income taxes 0 (382)
Other sources of cash 61 4,465
Other uses of cash (60) (692)
Changes in working capital:
Accounts receivable 38 (195)
Accounts payable (39) (276)
Accrued taxes 0 (25)
Other working capital (excludes cash) (1) 3,748
------------- -------------
Net cash flows (used for)/from operating activities (26,471) (18,432)
------------- -------------
Financing Activities:
Other paid in capital (14,117) (9,600)
Cash dividends on common stock 238 0
------------- -------------
Net cash flows (used for) financing activities (13,879) (9,600)
------------- -------------
Investment Activities:
Investment in plant:
Electric and other utility plant 0 (63)
Other investments 40,350 27,213
------------- -------------
Net cash flows (used for)/from investments 40,350 27,150
------------- -------------
Net increase/(decrease) in cash for the period 0 (882)
Cash - beginning of period 0 1,637
------------- -------------
Cash - end of period $ 0 $ 755
============= =============
Supplemental Cash Flow Information
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 0 $ 0
============= =============
Income taxes $ 0 $ (189)
============= =============
Note: Individual columns may not add to Consolidated financial statements due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
HEC INC. AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
HEC Southwest
International HEC Energy
HEC Inc. Corporation Services L.L.C.
------------ ------------- ---------------
<S> <C> <C> <C>
Utility Plant, at original cost:
Other $4,213 $5 $ 65
Less: Accumulated provision for
depreciation 2,979 4 22
------------ ------------- ---------------
1,234 1 43
Construction work in progress 0 0 0
------------ ------------- ---------------
Total net utility plant 1,234 1 43
------------ ------------- ---------------
Other Property and Investments:
Investments in subsidiary companies,
at equity (320) 0 0
------------ ------------- ---------------
Current Assets:
Cash 246 4 116
Receivables, net 2,782 0 78
Receivables from affiliated companies 796 0 0
Prepayments and other 139 0 5
------------ ------------- ---------------
3,963 4 199
------------ ------------- ---------------
Deferred Charges:
Other 1,347 0 575
------------ ------------- ---------------
Total Assets $6,224 $5 $817
============ ============= ===============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
HEC INC. AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
HEC Energy
Consulting
Canada, Inc. Eliminations Consolidated
------------ ------------ ------------
<S> <C> <C> <C>
Utility Plant, at original cost:
Other $ 9 $ 0 $4,292
Less: Accumulated provision for
depreciation 8 0 3,013
------------ ------------ ------------
1 0 1,279
Construction work in progress 0 0 0
------------ ------------ ------------
Total net utility plant 1 0 1,279
------------ ------------ ------------
Other Property and Investments:
Investments in subsidiary companies,
at equity 0 (320) 0
------------ ------------ ------------
Current Assets:
Cash 59 0 425
Receivables, net 8 0 2,868
Receivables from affiliated companies 0 0 796
Prepayments and other 0 0 144
------------ ------------ ------------
67 0 4,233
------------ ------------ ------------
Deferred Charges:
Other 1 0 1,923
------------ ------------ ------------
Total Assets $69 $(320) $7,435
============ ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
HEC INC.AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
HEC Southwest
International HEC Energy
HEC Inc. Corporation Services L.L.C.
------------ ------------- ---------------
<S> <C> <C> <C>
Capitalization:
Common stockholder's equity:
Common stock $ 0 0 $ 250
Capital surplus, paid in 4,000 10 0
Retained earnings (562) (6) (583)
Accumulated other comprehensive income (1) 0 0
------------ ------------- ---------------
Total common stockholder's equity 3,437 4 (333)
Long-term debt 0 0 525
------------ ------------- ---------------
Total capitalization 3,437 4 192
------------ ------------- ---------------
Current Liabilities:
Notes payable to affiliated company 1,000 0 0
Accounts payable 1,328 0 193
Accounts payable to affiliated
companies 55 0 0
Accrued taxes 221 0 0
Other 95 1 432
------------ ------------- ---------------
2,699 1 625
------------ ------------- ---------------
Deferred Credits:
Accumulated deferred income taxes 88 0 0
------------ ------------- ---------------
Total Capitalization and Liabilities $6,224 $ 5 $ 817
============ ============= ===============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integraL part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
HEC INC.AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
HEC Energy
Consulting
Canada, Inc. Eliminations Consolidated
------------ ------------ ------------
<S> <C> <C> <C>
Capitalization:
Common stockholder's equity:
Common stock $ 0 $ 250 $ 0
Capital surplus, paid in 6 16 4,000
Retained earnings 3 (586) (562)
Accumulated other comprehensive income 0 0 (1)
------------ ------------ ------------
Total common stockholder's equity 9 (320) 3,437
Long-term debt 0 0 525
------------ ------------ ------------
Total capitalization 9 (320) 3,962
------------ ------------ ------------
Current Liabilities:
Notes payable to affiliated company 0 0 1,000
Accounts payable 0 0 1,521
Accounts payable to affiliated
companies 0 0 55
Accrued taxes 0 0 221
Other 60 0 588
------------ ------------ ------------
60 0 3,385
------------ ------------ ------------
Deferred Credits:
Accumulated deferred income taxes 0 0 88
------------ ------------ ------------
Total Capitalization and Liabilities $69 $(320) $7,435
============ ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
HEC INC. AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
HEC Southwest
International HEC Energy
HEC Inc. Corporation Services L.L.C.
------------ ------------- ---------------
<S> <C> <C> <C>
Operating Revenues $21,995 $ 0 $ 753
------------ ------------- ---------------
Operating Expenses:
Operation 21,864 0 1,044
Maintenance 31 0 5
Depreciation 430 2 11
Federal and state income taxes (279) 0 0
Taxes other than income taxes 330 0 26
------------ ------------- ---------------
Total operating expenses 22,376 2 1,086
------------ ------------- ---------------
Operating Loss (381) (2) (333)
------------ ------------- ---------------
Other Income (Loss) (216) 0 13
------------ ------------- ---------------
Loss before interest charges (597) (2) (320)
------------ ------------- ---------------
Interest Charges 78 0 39
------------ ------------- ---------------
Net Loss $ (675) $(2) $ (359)
============ ============= ===============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
HEC INC. AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
HEC Energy
Consulting
Canada, Inc. Eliminations Consolidated
------------ ------------ ------------
<S> <C> <C> <C>
Operating Revenues $ 8 $ 48 $22,708
------------ ------------ ------------
Operating Expenses:
Operation 12 48 22,873
Maintenance 0 0 36
Depreciation 2 0 443
Federal and state income taxes (2) 0 (281)
Taxes other than income taxes 0 0 356
------------ ------------ ------------
Total operating expenses 12 48 23,427
------------ ------------ ------------
Operating Loss (4) 0 (719)
------------ ------------ ------------
Other Income (Loss) 2 (354) 152
------------ ------------ ------------
Loss before interest charges (2) (354) (567)
------------ ------------ ------------
Interest Charges 2 11 108
------------ ------------ ------------
Net Loss $(4) $(365) $ (675)
============ ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
HEC INC. AND SUBSIDIARIES
Consolidating Statement of
Retained Earnings (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
HEC Southwest
International HEC Energy
HEC Inc. Corporation Services L.L.C.
------------ ------------- ---------------
<S> <C> <C> <C>
Balance at beginning of period $ 113 $(4) $(224)
Addition: Net income (loss) (675) (2) (359)
------------ ------------- ---------------
Balance at end of period $(562) $(6) $(583)
============ ============= ===============
</TABLE>
HEC INC AND SUBSIDIARIES
Consolidating Statement of
Capital Surplus, Paid In (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
HEC Southwest
International HEC Energy
HEC Inc. Corporation Services L.L.C.
------------ ------------- ---------------
<S> <C> <C> <C>
Balance at beginning of period $3,999 $10 $0
0 0 0
------------ ------------- ---------------
Balance at end of period $3,999 $10 $0
============ ============= ===============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
HEC INC. AND SUBSIDIARIES
Consolidating Statement of
Retained Earnings (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
HEC Energy
Consulting
Canada, Inc. Eliminations Consolidated
------------ ------------ ------------
<S> <C> <C> <C>
Balance at beginning of period $ 7 $(221) $ 113
Addition: Net income (loss) (4) (365) (675)
------------ ------------ ------------
Balance at end of period $ 3 $(586) $(562)
============ ============ ============
</TABLE>
HEC INC AND SUBSIDIARIES
Consolidating Statement of
Capital Surplus, Paid In (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
HEC Energy
Consulting
Canada, Inc. Eliminations Consolidated
------------ ------------ ------------
<S> <C> <C> <C>
Balance at beginning of period $6 $16 $3,999
0 0 0
------------ ------------ ------------
Balance at end of period $6 $16 $3,999
============ ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
HEC INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
HEC Southwest
International HEC Energy
HEC Inc. Corporation Services LLC
----------- ------------- ------------
<S> <C> <C> <C>
Operating Activities:
Net (loss) $ (675) $ (2) $ (359)
Adjustments to reconcile to net cash
from operating activities:
Depreciation 430 2 11
Deferred income taxes and investment tax credits, net (310) 0 0
Other sources of cash 666 0 0
Other uses of cash (18) 0 (339)
Changes in working capital:
Receivables and accrued utility revenues 215 0 (64)
Fuel, materials, and supplies 26 0 0
Accounts payable (619) 0 172
Accrued taxes (161) 0 0
Other working capital (excludes cash) (449) 1 418
----------- ------------- ------------
Net cash flows (used for)/from operating activities (895) 1 (161)
----------- ------------- ------------
Financing Activities:
Issuance of long term debt 0 0 275
Net increase in short-term debt 443 (1) (12)
----------- ------------- ------------
Net cash flows from/(used for) financing activities 443 (1) 263
----------- ------------- ------------
Investment Activities:
Investment in plant:
Electric utility plant (110) 0 0
----------- ------------- ------------
Net cash flows used for investments in plant (110) 0 0
Investment in subsidiaries 366 0 0
----------- ------------- ------------
Net cash flows used for investments 256 0 0
----------- ------------- ------------
Net (decrease)/increase in cash for the period (196) (1) 102
Cash - beginning of period 442 5 14
----------- ------------- ------------
Cash - end of period $ 246 $ 4 $ 116
=========== ============= ============
Supplemental Cash Flow Information
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 76 $ 0 $ 0
=========== ============= ============
Income taxes $ 101 $ 0 $ 0
=========== ============= ============
Note: Individual columns may not add to Consolidated financial statements due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
HEC INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
HEC Energy
Consulting
Canada, Inc. Eliminations Consolidated
------------ ------------ ------------
<S> <C> <C> <C>
Operating Activities:
Net (loss) $ (4) $ (365) $ (675)
Adjustments to reconcile to net cash
from operating activities:
Depreciation 2 0 443
Deferred income taxes and investment tax credits, net 0 0 (310)
Other sources of cash 0 323 343
Other uses of cash (2) (324) (34)
Changes in working capital:
Receivables and accrued utility revenues (7) 0 144
Fuel, materials, and supplies 0 0 26
Accounts payable 0 0 (447)
Accrued taxes 0 0 (161)
Other working capital (excludes cash) 50 0 20
------------ ------------ ------------
Net cash flows (used for)/from operating activities 39 (366) (651)
------------ ------------ ------------
Financing Activities:
Issuance of long term debt 0 0 275
Net increase in short-term debt (30) 0 400
------------ ------------ ------------
Net cash flows from/(used for) financing activities (30) 0 675
------------ ------------ ------------
Investment Activities:
Investment in plant:
Electric utility plant 0 0 (110)
------------ ------------ ------------
Net cash flows used for investments in plant 0 0 (110)
Investment in subsidiaries 0 366 0
------------ ------------ ------------
Net cash flows used for investments 0 366 (110)
------------ ------------ ------------
Net (decrease)/increase in cash for the period 9 0 (86)
Cash - beginning of period 50 0 511
------------ ------------ ------------
Cash - end of period $ 59 $ 0 $ 425
============ ============ ============
Supplemental Cash Flow Information
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 0 $ 0 $ 76
============ ============ ============
Income taxes $ 0 $ 0 $ 101
============ ============ ============
Note: Individual columns may not add to Consolidated financial statements due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AND SUBSIDIARY
Consolidating Balance Sheet (a)
Assets
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Western
Massachusetts WMECO
Electric Receivables
Company Corporation Eliminations Consolidated
------------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Utility Plant, at cost:
Electric $1,221,257 $ 0 $ 0 $1,221,257
Less: Accumulated provision for
depreciation 517,401 0 0 517,401
------------- ----------- ------------ ------------
703,856 0 0 703,856
Construction work in progress 14,858 0 0 14,858
Nuclear fuel, net 19,931 0 0 19,931
------------- ----------- ------------ ------------
Total net utility plant 738,645 0 0 738,645
------------- ----------- ------------ ------------
Other Property and Investments:
Nuclear decommissioning trusts,
at market 125,598 0 0 125,598
Investments in regional nuclear
generating companies, at equity 15,440 0 0 15,440
Investments in subsidiary companies,
at equity 177 0 177 0
Other, at cost 7,322 0 0 7,322
------------- ----------- ------------ ------------
148,537 0 177 148,360
------------- ----------- ------------ ------------
Current Assets:
Cash and special deposits 59 47 0 106
Investments in securitizable assets 19,508 41,865 39,508 21,865
Receivables, net 862 0 0 862
Accounts receivable from affiliated
companies 6,692 0 2,504 4,188
Taxes receivable 13,978 277 0 14,255
Fuel, materials, and supplies,
at average cost 5,053 0 0 5,053
Recoverable energy costs, net--
current portion 1,924 0 0 1,924
Prepayments and other 23,996 0 0 23,996
------------- ----------- ------------ ------------
72,072 42,189 42,012 72,249
------------- ----------- ------------ ------------
Deferred Charges:
Regulatory assets 322,435 0 0 322,435
Unamortized debt expense 2,298 0 0 2,298
Other 3,695 0 0 3,695
------------- ----------- ------------ ------------
328,428 0 0 328,428
------------- ----------- ------------ ------------
Total Assets $1,287,682 $42,189 $42,189 $1,287,682
============= =========== ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AND SUBSIDIARY
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Western
Massachusetts WMECO
Electric Receivables
Company Corporation Eliminations Consolidated
------------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Capitalization:
Common stockholder's equity:
Common stock $ 26,812 $ 0 $ 0 $ 26,812
Capital surplus, paid in 151,431 13,666 13,666 151,431
Retained earnings 46,003 117 117 46,003
Accumulated other comprehensive
income 150 0 0 150
------------- ----------- ------------ ------------
Total common stockholder's equity 224,396 13,783 13,783 224,396
Preferred stock not subject to mandatory
redemption 20,000 0 0 20,000
Preferred stock subject to mandatory
redemption 18,000 0 0 18,000
Long-term debt 349,314 0 0 349,314
------------- ----------- ------------ ------------
Total capitalization 611,710 13,783 13,783 611,710
------------- ----------- ------------ ------------
Obligations Under Capital Leases 12,129 0 0 12,129
------------- ----------- ------------ ------------
Current Liabilities:
Notes payable to banks 20,000 20,000 20,000 20,000
Notes payable to affiliated companies 30,900 0 0 30,900
Long-term debt and preferred stock--
current portion 41,500 0 0 41,500
Obligations under capital leases--
current portion 21,964 0 0 21,964
Accounts payable 17,952 0 0 17,952
Accounts payable to affiliated
companies 12,866 6,393 6,393 12,866
Accrued taxes 1,264 0 0 1,264
Accrued interest 8,030 2,013 2,013 8,030
Other 6,831 0 0 6,831
------------- ----------- ------------ ------------
161,307 28,406 28,406 161,307
------------- ----------- ------------ ------------
Deferred Credits:
Accumulated deferred income taxes 248,985 0 0 248,985
Accumulated deferred investment
tax credits 21,895 0 0 21,895
Decommissioning obligation--
Millstone 1 131,500 0 0 131,500
Deferred contractual obligations 74,534 0 0 74,534
Other 25,622 0 0 25,622
------------- ----------- ------------ ------------
502,536 0 0 502,536
------------- ----------- ------------ ------------
Total Capitalization and Liabilities $1,287,682 $42,189 $42,189 $1,287,682
============= =========== ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AND SUBSIDIARY
Consolidating Statement of Income (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Western
Massachusetts WMECO
Electric Receivables
Company Corporation Eliminations Consolidated
------------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Operating Revenues $393,322 $ 0 $ 0 $393,322
------------- ----------- ------------ ------------
Operating Expenses:
Operation--
Fuel, purchased and net interchange
power 113,148 0 0 113,148
Other 134,909 319 312 134,916
Maintenance 56,622 0 0 56,622
Depreciation 40,901 0 0 40,901
Amortization of regulatory assets, net 6,016 0 0 6,016
Federal and state income taxes 1,574 535 0 2,109
Taxes other than income taxes 20,105 (349) 0 19,756
------------- ----------- ------------ ------------
Total operating expenses 373,275 505 312 373,468
------------- ----------- ------------ ------------
Operating Income (Loss) 20,047 (505) (312) 19,854
------------- ----------- ------------ ------------
Other Income:
Equity in earnings of regional nuclear
generating companies 1,699 0 0 1,699
Other, net (2,098) 2,357 2,164 (1,905)
Income taxes 2,198 0 0 2,198
------------- ----------- ------------ ------------
Other income, net 1,799 2,357 2,164 1,992
------------- ----------- ------------ ------------
Income before interest charges 21,846 1,852 1,852 21,846
------------- ----------- ------------ ------------
Interest Charges:
Interest on long-term debt 28,027 0 0 28,027
Other interest 3,415 1,090 1,090 3,415
Def.nuclear plants ret.-borrowed funds (17) 0 0 (17)
------------- ----------- ------------ ------------
Interest charges, net 31,425 1,090 1,090 31,425
------------- ----------- ------------ ------------
Net Income (Loss) $ (9,579) $ 762 $ 762 $ (9,579)
============= =========== ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AND SUBSIDIARY
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Western
Massachusetts WMECO
Electric Receivables
Company Corporation Eliminations Consolidated
------------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Balance at beginning of period $58,608 $(645) $(645) $58,608
Addition: Net income (loss) (9,579) 762 762 (9,579)
------------- ----------- ------------ ------------
49,029 117 117 49,029
Deductions:
Dividends declared:
Preferred Stock 3,026 0 0 3,026
------------- ----------- ------------ ------------
Total deductions 3,026 0 0 3,026
------------- ----------- ------------ ------------
Balance at end of period $46,003 $ 117 $ 117 $46,003
============= =========== ============ ============
</TABLE>
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AND SUBSIDIARY
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Western
Massachusetts WMECO
Electric Receivables
Company Corporation Eliminations Consolidated
------------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Balance at beginning of period $151,171 $13,666 $13,666 $151,171
Capital stock expenses, net 260 0 0 260
------------- ----------- ------------ ------------
Balance at end of period $151,431 $13,666 $13,666 $151,431
============= =========== ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
WESTERN MASSACHUSETTS ELECTRIC COMPANY AND SUBSIDIARY
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Western
Massachusetts WMECO
Electric Receivables
Company Corporation
--------------- ------------
<S> <C> <C>
Operating Activities:
Net (loss)/income $ (9,579) $ 762
Adjustments to reconcile to net cash
from operating activities:
Depreciation 40,901 0
Deferred income taxes and investment tax credits, net 7,405 0
Deferred nuclear plants return (18) 0
Amortization/(deferral) of recoverable energy costs 5,366 0
Amortization of regulatory assets - income taxes 2,657 0
Amortization of other regulatory assets 3,359 0
Other sources of cash 9,029 0
Other uses of cash (11,791) 0
Changes in working capital:
Receivables and accrued utility revenues, net (702) 0
Fuel, materials, and supplies 807 0
Accounts payable (20,962) (6,383)
Accrued taxes 742 0
Sale of receivables and accrued utility revenues 0 0
Investment in securitizable assets 6,695 3,415
Other working capital (excludes cash) (3,628) 2,200
--------------- -----------
Net cash flows from/(used for) operating activities 30,281 (6)
--------------- -----------
Financing Activities:
Net increase in short-term debt 21,550 0
Reacquisitions and retirements of long-term debt (9,800) 0
Reacquisitions and retirements of preferred stock (1,500) 0
Cash dividends on preferred stock (3,026) 0
--------------- -----------
Net cash flows from financing activities 7,224 0
--------------- -----------
Investment Activities:
Investment in plant:
Electric utility plant (19,895) 0
Nuclear fuel (1,801) 0
--------------- -----------
Net cash flows used for investments in plant (21,696) 0
Investment in nuclear decommissioning trusts (12,918) 0
Other investment activities, net (2,883) 0
--------------- -----------
Net cash flows (used for) investments (37,497) 0
--------------- -----------
Net increase/(decrease) in cash for the period 8 (6)
Cash - beginning of period 51 53
--------------- -----------
Cash - end of period $ 59 47
=============== ===========
Supplemental Cash Flow Information
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 22,902 0
=============== ===========
Income taxes $ (2,624) 0
=============== ===========
Increase in obligations:
Niantic Bay Fuel Trust and other capital leases $ 962 $ 0
=============== ===========
Note: Individual columns may not add to Consolidated financial statments due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
WESTERN MASSACHUSETTS ELECTRIC COMPANY AND SUBSIDIARY
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Eliminations Consolidated
------------- -------------
<S> <C> <C>
Operating Activities:
Net (loss)/income $ 762 $ (9,579)
Adjustments to reconcile to net cash
from operating activities:
Depreciation 0 40,901
Deferred income taxes and investment tax credits, net 0 7,405
Deferred nuclear plants return 0 (18)
Amortization/(deferral) of recoverable energy costs 0 5,366
Amortization of regulatory assets - income taxes 0 2,657
Amortization of other regulatory assets 0 3,359
Other sources of cash 0 9,029
Other uses of cash 0 (11,791)
Changes in working capital:
Receivables and accrued utility revenues, net (2,325) 1,622
Fuel, materials, and supplies 0 807
Accounts payable (6,383) (20,962)
Accrued taxes 0 742
Sale of receivables and accrued utility revenues 0 0
Investment in securitizable assets 6,695 3,415
Other working capital (excludes cash) 2,013 (3,441)
------------- -------------
Net cash flows from/(used for) operating activities 762 29,512
------------- -------------
Financing Activities:
Net increase in short-term debt 0 21,550
Reacquisitions and retirements of long-term debt 0 (9,800)
Reacquisitions and retirements of preferred stock 0 (1,500)
Cash dividends on preferred stock 0 (3,026)
------------- -------------
Net cash flows from financing activities 0 7,224
------------- -------------
Investment Activities:
Investment in plant:
Electric utility plant 0 (19,895)
Nuclear fuel 0 (1,801)
------------- -------------
Net cash flows used for investments in plant 0 (21,696)
Investment in nuclear decommissioning trusts 0 (12,918)
Other investment activities, net (762) (2,121)
------------- -------------
Net cash flows (used for) investments (762) (36,735)
------------- -------------
Net increase/(decrease) in cash for the period 0 1
Cash - beginning of period 0 105
------------- -------------
Cash - end of period $ 0 $ 106
============= =============
Supplemental Cash Flow Information
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 0 $ 22,902
============= =============
Income taxes $ 0 $ (2,624)
============= =============
Increase in obligations:
Niantic Bay Fuel Trust and other capital leases $ 0 $ 962
============= =============
Note: Individual columns may not add to Consolidated financial statments due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
NU Reference is made to "Notes to Consolidated Financial Statements"
contained on pages 29 through 49 in NU's 1998 Annual Report to
Shareholders, which information is incorporated herein by reference.
CL&P Reference is made to "Notes to Consolidated Financial Statements"
contained on pages 7 through 39 in CL&P's 1998 Annual Report, which
information is incorporated herein by reference.
PSNH Reference is made to "Notes to Financial Statements" contained on
pages 7 through 38 in PSNH's 1998 Annual Report, which information
is incorporated herein by reference.
WMECO Reference is made to "Notes to Consolidated Financial Statements"
contained on pages 7 through 35 in WMECO's 1998 Annual Report,
which information is incorporated herein by reference.
NAEC Reference is made to "Notes to Financial Statements" contained on
pages 7 through 21 in NAEC's 1998 Annual Report, which information
is incorporated herein by reference.
EXHIBITS
The following exhibits are incorporated by reference to the indicated SEC
file number, unless a single asterisk appears next to the exhibit reference.
A single asterisk indicates exhibits which are filed herewith. A # further
indicates that the exhibit is filed under cover of Form SE.
EXHIBIT
NUMBER DESCRIPTION
A. ANNUAL REPORTS
A.1 Annual Reports filed under the Securities Exchange Act of 1934
A.1.1 1998 Annual Report on Form 10-K for NU. (File No. 1-5324)
A.1.2 1998 Annual Report on Form 10-K for CL&P. (File No. 0-11419)
A.1.3 1998 Annual Report on Form 10-K for PSNH. (File No. 1-6392)
A.1.4 1998 Annual Report on Form 10-K for WMECO. (File No. 0-7624)
A.1.5 1998 Annual Report on Form 10-K for NAEC. (File No. 33-43508)
A.2 Annual Reports and Reports to the FERC on Form 1
*# A.2.1 1998 Annual Report to Shareholders of Connecticut Yankee
Atomic Power Company.
A.2.2 1998 Annual Report to Shareholders of Maine Yankee Atomic
Power Company. (Exhibit A.2, 1998 New England Electric
System (NEES) U5S, File No. 30-33)
A.2.3 1998 Annual Report to Shareholders of Vermont Yankee Nuclear
Power Corporation. (Exhibit A.7.a, to be filed with the 1998
NEES U5S, File No. 30-33)
A.2.4 1998 FERC Form 1 of Vermont Yankee Nuclear Power Corporation.
(Exhibit A.7.b, 1998 NEES U5S, File No. 30-33)
A.2.5 1998 Annual Report to Shareholders of Yankee Atomic Electric
Company. (Exhibit A.8, 1998 NEES U5S,File No. 30-33)
*# A.2.6 1998 Annual Report to Shareholders of New England Hydro-
Transmission Electric Company, Inc.
*# A.2.7 1998 Annual Report to Shareholders of New England Hydro-
Transmission Corporation.
B. CHARTERS, ARTICLES OF INCORPORATION, TRUST AGREEMENTS, BY-LAWS, AND OTHER
FUNDAMENTAL DOCUMENTS OF ORGANIZATION
B.1 Northeast Utilities
B.1.1 Declaration of Trust of NU, as amended through May 24, 1988.
(Exhibit 3.1.1, 1988 NU Form 10-K, File No. 1-5324)
B.2 The Connecticut Light and Power Company
B.2.1 Certificate of Incorporation of CL&P, restated to March 22,
1994. (Exhibit 3.2.1, 1993 NU Form 10-K, File No. 1-5324)
B.2.2 Certificate of Amendment to Certificate of Incorporation of
CL&P, dated December 26, 1996. (Exhibit 3.2.2, 1996 NU
Form 10-K, File No. 1-5324)
B.2.3 Certificate of Amendment to Certificate of Incorporation of
CL&P, dated April 27, 1998. (Exhibit 3.2.3, 1998 NU Form 10-K,
File No. 1-5324)
B.2.4 By-laws of CL&P, as amended to January 1, 1997. (Exhibit
3.2.3, 1996 NU Form 10-K, File No. 1-5324)
B.3 Public Service Company of New Hampshire
B.3.1 Articles of Incorporation, as amended to May 16, 1991.
(Exhibit B.3.1, 1997 NU Form U53, File No. 30-246)
B.3.2 By-laws of PSNH, as amended to November 1, 1993. (Exhibit
3.3.2, 1993 NU Form 10-K, File No. 1-5324)
B.4 Western Massachusetts Electric Company
B.4.1 Articles of Organization of WMECO, restated to February 23,
1995. (Exhibit 3.4.1, 1994 NU Form 10-K, File No. 1-5324)
B.4.2 By-laws of WMECO, as amended to February 11, 1998. (Exhibit
3.4.2, 1996 NU Form 10-K, File No. 1-5324)
B.5 North Atlantic Energy Corporation
B.5.1 Articles of Incorporation of NAEC dated September 20, 1991.
(Exhibit 3.5.1, 1993 NU Form 10-K, File No. 1-5324)
B.5.2 Articles of Amendment dated October 16, 1991 and June 2, 1992
to Articles of Incorporation of NAEC. (Exhibit 3.5.2, 1993
NU Form 10-K, File No. 1-5324)
B.5.3 By-laws of NAEC, as amended to November 8, 1993. (Exhibit
3.5.3, 1993 NU Form 10-K, File No. 1-5324)
B.6 The Quinnehtuk Company
B.6.1 Articles of Organization of The Quinnehtuk Company dated
December 14, 1928 and Articles of Amendment dated December 18,
1930. (Exhibit B.6.1, 1997 NU Form U5S, File No. 30-246)
B.6.2 Amendment to Certificate of Incorporation of The Quinnehtuk
Company dated June 10, 1975. (Exhibit B.6.2, 1993 NU Form
U5S, File No. 30-246)
B.6.3 By-laws of The Quinnehtuk Company as amended to February 11,
1998. (Exhibit B.6.3, 1997 NU Form U5S, File No. 30-246)
B.7 The Rocky River Realty Company
B.7.1 Certificate of Incorporation, as amended, of The Rocky River
Realty Company. (Exhibit 1.9, 1977 NU Form U5S, File No.
30-246)
B.7.2 Certificate of Amendment to Certificate of Incorporation of
The Rocky River Realty Company, dated December 26, 1996.
(Exhibit B.7.2, 1996 NU Form U5S, File No. 30-246)
B.7.3 Certificate of Amendment to Certificate of Incorporation of
the Rocky River Realty Company, dated April 27, 1998.
(Exhibit B.7.3, 1997 NU Form U5S, File No. 30-246)
B.7.4 By-laws of The Rocky River Realty Company, as amended to
February 11, 1998. (Exhibit B.7.4, 1997 NU Form U5S, File No.
30-246)
B.8 Research Park, Inc.
B.8.1 Charter of Research Park, Inc., dated July 18, 1963. (Exhibit
B.6, 1983 NU Form U5S, File No. 30-246)
B.8.2 Certificate of Amendment to Certificate of Incorporation of
Research Park, Inc., dated December 26, 1996. (Exhibit B.8.2,
1996 NU Form U5S, File No. 30-246
B.8.3 Certificate of Amendment to Certificate of Incorporation of
Research Park, Inc., dated April 27, 1998. (Exhibit B.8.3,
1997 NU Form U5S, File No. 30-246)
B.8.4 By-laws of Research Park, Inc., as amended to February 11,
1998. (Exhibit B.8.4, 1997 NU Form U5S, File No. 30-246)
B.9 The City and Suburban Electric and Gas Company
B.9.1 Charter of The City and Suburban Electric and Gas Company
(Special Act No. 169, Volume XXVIII, page 193, approved May 1,
1957). (Exhibit B.8, 1983 NU Form U5S, File No. 30-246)
B.9.2 Certificate of Amendment to Certificate of Incorporation of
The City and Suburban Electric and Gas Company, dated December
26, 1996. (Exhibit B.9.2, 1996 NU Form U5S, File No. 30-246)
B.9.3 By-laws of The City and Suburban Electric and Gas Company as
amended to February 15, 1952. (Exhibit B.8.1, 1983 NU Form
U5S, File No. 30-246)
B.10 Electric Power, Incorporated
B.10.1 Charter of Electric Power, Incorporated dated January 1, 1955.
(Exhibit B.9, 1983 NU Form U5S, File No. 30-246)
B.10.2 Amendment to Charter of Electric Power, Incorporated (Special
Act No. 133, Volume XXXI, page 103, approved June 11, 1963).
(Exhibit B.9.1, 1983 NU Form U5S, File No. 30-246)
B.10.3 Certificate of Amendment to Certificate of Incorporation
of Electric Power, Incorporated, dated December 26, 1996.
(Exhibit B.10.3, 1996 NU Form U5S, File No. 30-246)
B.10.4 By-laws of Electric Power, Incorporated as amended to
February 15, 1952. (Exhibit B.9.2, 1983 NU Form U5S, File
No. 30-246)
B.11 The Nutmeg Power Company
B.11.1 Certificate of Organization of The Nutmeg Power Company
dated July 19, 1954. (Exhibit B.11, 1983 NU Form U5S, File
No. 30-246)
B.11.2 Certificate of Amendment to the Certificate of Incorporation
of The Nutmeg Power Company, dated December 26, 1996.
(Exhibit B.11.2, 1996 NU Form U5S, File No. 30-246)
B.11.3 By-laws of The Nutmeg Power Company as amended to January 1,
1997. (Exhibit B.11.3, 1996 NU Form U5S, File No. 30-246)
B.12 The Connecticut Steam Company
B.12.1 Certificate of Incorporation of The Connecticut Steam Company
dated May 13, 1965, including Special Act No. 325, an Act
Incorporating The Connecticut Steam Company (Special Acts
1963, Senate Bill No. 704, approved June 24, 1963).
(Exhibit B.12, 1983 NU Form U5S, File No. 30-246)
B.12.2 Certificate of Amendment to Certificate of Incorporation of
The Connecticut Steam Company, dated December 26, 1996.
(Exhibit B.12.2, 1996 NU Form U5S, File No. 30-246)
B.12.3 By-laws of The Connecticut Steam Company, as amended to
January 1, 1997. (Exhibit B.12.3, 1996 NU Form U5S, File
No. 30-246)
B.13 The Connecticut Transmission Corporation
B.13.1 Charter of The Connecticut Transmission Corporation and
predecessor companies as amended to May 8, 1953. (Exhibit
B.13, 1983 NU Form U5S, File No. 30-246)
B.13.2 Certificate of Amendment to Certificate of Incorporation of
The Connecticut Transmission Corporation, dated December 26,
1996. (Exhibit B.13.2, 1996 NU Form U5S, File No. 30-246)
B.13.3 By-laws of The Connecticut Transmission Corporation as
amended to February 15, 1952. (Exhibit B.13.1, 1983 NU
Form U5S, File No. 30-246)
B.14 Holyoke Water Power Company
B.14.1 Charter of Holyoke Water Power Company, as amended.
(Exhibit 1.8, 1977 NU Form U5S, File No. 30-246)
B.14.2 By-laws of Holyoke Water Power Company, as amended to
February 11, 1998. (Exhibit B.14.2, NU Form U5S, File
No. 30-246)
B.15 Holyoke Power and Electric Company
B.15.1 Charter of Holyoke Power and Electric Company dated December
5, 1925. (Exhibit B.15, 1983 NU Form U5S, File No. 30-246)
B.15.2 Chapter 147 of the Massachusetts Acts of 1926 amending the
Charter of Holyoke Power and Electric Company, as recorded
with the Office of the Secretary of the Commonwealth on March
29, 1926. (Exhibit B.15.1, 1983 NU Form U5S, File No. 30-246)
B.15.3 By-laws of Holyoke Power and Electric Company, as amended to
February 11, 1998. (Exhibit B.15.3, 1997 NU U5S, File No.
30-246)
B.16 Northeast Utilities Service Company
B.16.1 Charter of Northeast Utilities Service Company, as amended to
February 20, 1974. (Exhibit B.16, 1983 NU Form U5S, File No.
30-246)
B.16.2 Certificate of Amendment to Certificate of Incorporation of
Northeast Utilities Service Company, dated December 26, 1996.
(Exhibit B.16.2, 1996 NU Form U5S, File No. 30-246)
B.16.3 Certificate of Amendment to Certificate of Incorporation of
Northeast Utilities Service Company, dated April 27, 1998.
(Exhibit B.16.3, 1997 NU Form U5S, File No. 30-246)
B.16.4 By-laws of Northeast Utilities Service Company as amended to
January 1, 1997. (Exhibit B.16.3, 1996 NU Form U5S, File No.
30-246)
B.17 Northeast Nuclear Energy Company
B.17.1 Charter of Northeast Nuclear Energy Company as amended to
April 24, 1974. (Exhibit B.17, 1983 NU Form U5S, File No.
30-246)
B.17.2 Certificate of Amendment to Certificate of Incorporation of
Northeast Nuclear Energy Company, dated December 26, 1996.
(Exhibit B.17.2, 1996 NU Form U5S, File No. 30-246)
B.17.3 Certificate of Amendment to Certificate of Incorporation of
Northeast Nuclear Energy Company, dated April 27, 1998.
(Exhibit B.17.3, 1997 NU Form U5S, File No. 30-246)
B.17.4 By-laws of Northeast Nuclear Energy Company, as amended to
February 11, 1998. (Exhibit B.17.4, 1997 NU Form U5S, File
No. 30-246)
B.18 HEC Inc.
B.18.1 Articles of Organization of HEC Inc. dated June 19, 1990.
(Exhibit B.19, 1990 NU Form U5S, File No. 30-246)
B.18.2 By-Laws of HEC Inc. (Exhibit B.19.1, 1990 NU Form U5S, File
No. 30-246)
B.19 HEC International Corporation
B.19.1 Articles of Organization of HEC International Corporation
dated October 12, 1994. (Exhibit B.19.1, 1994 NU Form U5S,
File No. 30-246)
B.19.2 By-laws of HEC International Corporation dated October 12,
1994. (Exhibit B.19.2, 1994 NU Form U5S, File No. 30-246)
B.20 HEC Energy Consulting Canada Inc.
B.20.1 Articles of Incorporation of HEC Energy Consulting Canada
Inc. dated October 24, 1994. (Exhibit B.20.1, 1994 NU Form
U5S, File No. 30-246)
B.20.2 By-laws of HEC Energy Consulting Canada Inc. dated October
24, 1994. (Exhibit B.20.2, 1994 NU Form U5S, File No. 30-246)
B.21 North Atlantic Energy Service Corporation
B.21.1 Articles of Incorporation; and Certificate of Amendment of
North Atlantic Energy Service Corporation dated June 1, 1992.
(Exhibit B.21, 1992 NU Form U5S, File No. 30-246)
B.21.2 By-Laws of North Atlantic Energy Service Corporation, as
amended to November 8, 1993. (Exhibit B.19.2, 1993 NU Form
U5S, File No. 30-246)
B.22 Connecticut Yankee Atomic Power Company
B.22.1 Certificate of Incorporation of Connecticut Yankee Atomic
Power Company and amendments dated to November 20, 1964.
(Exhibit B.20.1, 1993 NU Form U5S, File No. 30-246)
B.22.2 Certificate of Amendment to Certificate of Incorporation of
Connecticut Yankee Atomic Power Company, dated December 26,
1996. (Exhibit B.22.2, 1996 NU Form U5S, File No. 30-246)
* B.22.3 Certificate of Amendment to Certificate of Incorporation of
Connecticut Yankee Atomic Power Company, dated October 15,
1998.
* B.22.4 By-laws of Connecticut Yankee Atomic Power Company, as
amended to March 31, 1999.
B.23 Properties, Inc.
B.23.1 Articles of Agreement of Properties, Inc. as amended to June
1, 1983. (Exhibit B.21.1, 1993 NU Form U5S, File No. 30-246)
B.23.2 By-laws of Properties, Inc., amended and restated as of
February 7, 1996. (Exhibit B.23.2, 1995 NU Form U5S, File No.
30-246)
B.24 New Hampshire Electric Company
B.24.1 Articles of Agreement of New Hampshire Electric Company, as
amended to June 1, 1983. (Exhibit B.22.1, 1993 NU Form U5S,
File No. 30-246)
B.24.2 By-laws of New Hampshire Electric Company, as amended to June
1, 1983. (Exhibit B.22.2, 1993 NU Form U5S, File No. 30-246)
B.25 Charter Oak Energy, Inc.
B.25.1 Certificate of Incorporation of Charter Oak Energy, Inc.,
dated September 28, 1988. (Exhibit B.16, 1989 NU Form U5S,
File No. 30-246)
B.25.2 Certificate of Amendment to Certificate of Incorporation of
Charter Oak Energy, Inc., dated December 26, 1996. (Exhibit
B.25.2, 1996 NU Form U5S, File No. 30-246)
B.25.3 Certificate of Amendment to Certificate of Incorporation of
Charter Oak Energy Inc., dated April 27, 1998. (Exhibit
B.25.3, 1997 NU Form U5S, File No. 30-246)
B.25.4 By-laws of Charter Oak Energy, Inc., as amended to January 1,
1997. (Exhibit B.25.3, 1996 NU Form U5S, File No. 30-246)
B.26 COE Development Corporation
B.26.1 Certificate of Incorporation of COE Development Corporation
dated November 6, 1992. (Exhibit B.26.1, 1993 NU Form U5S,
File No. 30-246)
B.26.2 Certificate of Amendment to Certificate of Incorporation
of COE Development Corporation, dated December 26, 1996.
(Exhibit B.26.2, 1996 NU Form U5S, File No. 30-246)
B.26.3 Certificate of Amendment to Certificate of Incorporation
of COE Development Corporation, dated April 27, 1998.
(Exhibit B.27.3, 1997 NU Form U5S File No. 30-246)
B.26.4 By-laws of COE Development Corporation, as amended to
January 1, 1997. (Exhibit B.26.4, 1996 NU Form U5S, File
No. 30-246)
B.27 COE Argentina II Corp.
B.27.1 Certificate of Incorporation of COE Argentina II Corp.
dated March 14, 1994. (Exhibit B.27.1, 1994 NU Form U5S,
File No. 30-246)
B.27.2 Certificate of Amendment to Certificate of Incorporation of
COE Argentina II Corp., dated December 26, 1996. (Exhibit
B.27.2, 1996 NU Form U5S, File No. 30-246)
B.27.3 Certificate of Amendment to Certificate of Incorporation of
COE Argentina II Corp., dated April 27, 1998. (Exhibit
B.27.3, 1997 NU Form U5S, File No. 30-246)
B.27.4 By-laws of COE Argentina II Corp., as amended to January 1,
1997. (Exhibit B.27.4, 1996 NU Form U5S, File No. 30-246)
B.28 COE Ave Fenix Corporation
B.28.1 Certificate of Incorporation of COE Ave Fenix Corporation
dated May 19, 1995. (Exhibit B.28.1, 1995 NU Form U5S, File
No. 30-246)
B.28.2 Certificate of Amendment to Certificate of Incorporation of
COE Ave Fenix Corporation, dated December 26, 1996. (Exhibit
B.28.2, 1996 NU Form U5S, File No. 30-246)
B.28.3 Certificate of Amendment to Certificate of Incorporation of
COE Ave Fenix Corporation, dated April 27, 1998. (Exhibit
B.28.3, 1997 NU Form U5S, File No. 30-246)
B.28.4 By-laws of COE Ave Fenix Corporation, as amended to January 1,
1997. (Exhibit B.28.4, 1996 NU Form U5S, File No. 30-246)
B.29 New England Hydro-Transmission Corporation
B.29.1 Articles of Incorporation, (Exhibit B.8a, 1986 NEES U5S, File
No. 30-33); Articles of Amendment of New England Hydro-
Transmission Corporation dated January 18, 1989, (Exhibit
B.10a, 1988 NEES U5S, File No. 30-33).
B.29.2 By-laws of New England Hydro-Transmission Corporation.
(Exhibit B.10b, 1988 NEES U5S, File No. 30-33)
B.30 New England Hydro-Transmission Electric Company
B.30.1 Restated Articles of Organization of New England Hydro-
Transmission Electric Company dated January 13, 1989.
(Exhibit B.11a, 1988 NEES U5S, File No. 30-33)
B.30.2 By-Laws of New England Hydro-Transmission Electric Company.
(Exhibit B.11b, 1988 NEES U5S File No. 30-33)
B.31 Amended and Restated Limited Partnership Agreement (CL&P Capital,
L.P.) among CL&P, NUSCO, and the persons who became limited partners
of CL&P Capital, L.P. in accordance with the provisions thereof dated
as of January 23, 1995 (MIPS). (Exhibit A.1, File No. 70-8451)
B.32 Certificate of Formation of Southwest HEC Energy Services L.L.C.,
dated November 21, 1995. (Exhibit B.33, 1995 NU Form U5S, File No.
30-246)
B.33 Mode 1 Communications, Inc.
B.33.1 Certificate of Incorporation of Mode 1 Communications, Inc.
dated March 26, 1996. (Exhibit B.34.1, 1996 NU Form U5S, File
No. 30-246)
B.33.2 Certificates of Amendment to Certificate of Incorporation of
Mode 1 Communications, Inc., dated December 26, 1996 and
February 4, 1997. (Exhibit B.34.2, 1996 NU Form U5S, File No.
30-246)
B.33.3 Certificate of Amendment to Certificate of Incorporation of
Mode l Communications, Inc., dated April 27, 1998. (Exhibit
B.34.3, 1997 NU Form U5S, File No. 30-246)
B.33.4 By-laws of Mode 1 Communications, Inc., as amended to January
1, 1997. (Exhibit B.34.4, 1996 NU Form U5S, File No. 30-246)
B.34 Select Energy, Inc.
B.34.1 Certificate of Incorporation of Select Energy, Inc. dated
September 26, 1996. (Exhibit B.40.1, 1996 NU Form U5S, File
No. 30-246)
B.34.2 Certificates of Amendment to Certificate of Incorporation of
Select Energy, Inc., dated December 26, 1996 and April 25,
1997. (Exhibit B.40.2, 1996 NU Form U5S, File No. 30-246)
B.34.3 Certificate of Amendment to Certificate of Incorporation of
Select Energy, Inc., dated April 27, 1998. (Exhibit B.40.3,
1997 NU Form U5S, File No. 30-246)
B.34.4 By-laws of Select Energy, Inc., as amended to May 12, 1997.
(Exhibit B.40.4, 1997 NU Form U5S, File No. 30-246)
B.35 CL&P Receivables Corporation
B.35.1 Certificate of Incorporation of CL&P Receivables Corporation,
dated September 5, 1997. (Exhibit B.41.1, 1997 NU Form U5S,
File No. 30-246)
B.35.2 Bylaws of CL&P Receivables Corporation, dated September 12,
1997. (Exhibit B.41.2, 1997 NU Form U5S, File No. 30-246)
B.36 WMECO Receivables Corporation
B.36.1 Certificate of Incorporation of WMECO Receivables Corporation,
dated May 6, 1997. (Exhibit B.42.1, 1997 NU Form U5S, File
No. 30-246)
B.36.2 Bylaws of WMECO Receivables Corporation, dated September 12,
1997. (Exhibit B.42.2, 1997 NU Form U5S, File No. 30-246)
C.(a) INSTRUMENTS DEFINING THE RIGHTS OF SECURITY HOLDERS, INCLUDING INDENTURES
C.1 Northeast Utilities
C.1.1 Indenture dated as of December 1, 1991 between Northeast
Utilities and IBJ Schroder Bank & Trust Company, with respect
to the issuance of Debt Securities. (Exhibit 4.1.1, 1991 NU
Form 10-K, File No. 1-5324)
C.1.2 First Supplemental Indenture, dated as of December 1, 1991
between Northeast Utilities and IBJ Schroder Bank & Trust
Company, with respect to the issuance of Series A Notes.
(Exhibit 4.1.2, 1991 NU Form 10-K, File No. 1-5324)
C.1.3 Second Supplemental Indenture, dated as of March 1, 1992
between Northeast Utilities and IBJ Schroder Bank & Trust
Company, with respect to the issuance of Series B Notes.
(Exhibit C.1.3, 1991 NU Form U5S, File No. 30-246)
C.1.4 Credit Agreement among NU, CL&P and WMECO and several
commercial banks, dated as of November 21, 1996. (Exhibit
No. B.1, File No. 70-8875)
C.1.5 First Amendment and Waiver dated as of May 30, 1997 to Credit
Agreement dated as of November 21, 1996 among NU, CL&P, WMECO,
and the Co-Agents and Banks named therein. (Exhibit B.4(a)
(Execution Copy), File No. 70-8875)
C.1.6 Second Amendment and Waiver dated as of September 11, 1998 to
Credit Agreement dated as of November 21, 1996 among NU, CL&P,
WMECO, and the Co-Agents and Banks named therein. (Exhibit
B.10 (Execution Copy), File No. 70-8875)
C.1.7 Third Amendment and Waiver dated as of March 3, 1999 to Credit
Agreement dated as of November 21, 1996 among NU, CL&P, WMECO,
and the Co-Agents and Banks named therein. (Exhibit B.11
(Execution Copy), File No. 70-8875)
C.1.8 Credit Agreement dated as of February 10, 1998 among NU, the
Lenders named therein, and Toronto Dominion (Texas), Inc., as
Administrative Agent, TD Securities (USA) Inc., as Arranger.
(Exhibit B.9 (Execution Copy), File No. 70-8875)
C.1.9 First Amendment dated as of February 8, 1999 to Credit
Agreement dated as of February 10, 1998 among NU, the
Lenders named therein, and Toronto Dominion (Texas), Inc.,
as Administrative Agent, TD Securities (USA) Inc., as
Arranger. (Exhibit A (Execution Copy), File No. 70-8875)
C.1.10 Second Amendment dated as of March 9, 1999 to Credit Agreement
dated as of February 10, 1998 among NU, the Lenders named
therein, and Toronto Dominion (Texas), Inc., as Administrative
Agent, TD Securities (USA) Inc., as Arranger. (Exhibit B.12
(Execution Copy), File No. 70-8875)
C.2 The Connecticut Light and Power Company
C.2.1 Indenture of Mortgage and Deed of Trust between CL&P and
Bankers Trust Company, Trustee, dated as of May 1, 1921.
(Composite including all twenty-four amendments to May 1,
1967.) (Exhibit 4.1.1, 1989 NU Form 10-K, File No. 1-5324)
Supplemental Indentures to the Composite May 1, 1921 Indenture of
Mortgage and Deed of Trust between CL&P and Bankers Trust Company,
dated as of:
C.2.2 December 1, 1969. (Exhibit 4.20, File No. 2-60806)
C.2.3 June 30, 1982. (Exhibit 4.33, File No. 2-79235)
C.2.4 December 1, 1989. (Exhibit 4.1.26, 1989 NU Form 10-K,
File No. 1-5324)
C.2.5 July 1, 1992. (Exhibit 4.31, File No. 33-59430)
C.2.6 July 1, 1993. (Exhibit A.10(b), File No. 70-8249)
C.2.7 July 1, 1993. (Exhibit A.10(b), File No. 70-8249)
C.2.8 December 1, 1993. (Exhibit 4.2.14, 1993 NU Form 10-K,
File No. 1-5324)
C.2.9 February 1, 1994. (Exhibit 4.2.16, 1993 NU Form 10-K,
File No. 1-5324)
C.2.10 June 1, 1994. (Exhibit 4.2.15, 1994 NU Form 10-K, File
No. 1-5324)
C.2.11 October 1, 1994. (Exhibit 4.2.16, 1994 NU Form 10-K,
File No. 1-5324)
C.2.12 June 1, 1996. (Exhibit 4.2.16, 1996 NU Form 10-K, File
No. 1-5324)
C.2.13 January 1, 1997. (Exhibit 4.2.17, 1996 NU Form 10-K, File
No. 1-5324)
C.2.14 May 1, 1997. (Exhibit 4.19, File No. 333-30911)
C.2.15 June 1, 1997. (Exhibit 4.20, File No. 333-30911)
C.2.16 June 1, 1997. (Exhibit 4.2.17, 1997 NU Form 10-K, File
No. 1-5324)
C.2.17 May 1, 1998. (Exhibit 4.2.17, 1998 NU Form 10-K File
No. 1-5324)
C.2.18 May 1, 1998. (Exhibit 4.2.18, 1998 NU Form 10-K, File
No. 1-5324)
C.2.19 Financing Agreement between Industrial Development Authority
of the State of New Hampshire and CL&P (Pollution Control
Bonds, 1986 Series) dated as of December 1, 1986. (Exhibit
C.1.47, 1986 NU Form U5S, File No. 30-246)
C.2.20 Financing Agreement between Industrial Development Authority
of the State of New Hampshire and CL&P (Pollution Control
Bonds, 1988 Series) dated as of October 1, 1988. (Exhibit
C.1.55, 1988 NU Form U5S, File No. 30-246)
C.2.21 Financing Agreement between Industrial Development Authority
of the State of New Hampshire and CL&P (Pollution Control
Bonds) dated as of December 1, 1989. (Exhibit C.1.39, 1989
NU Form U5S, File No. 30-246)
C.2.22 Loan and Trust Agreement among Business Finance Authority of
the State of New Hampshire and CL&P (Pollution Control Bonds,
1992 Series A) dated as of December 1, 1992. (Exhibit C.2.33,
1992 NU Form U5S, File No. 30-246)
C.2.23 Loan Agreement between Connecticut Development Authority
and CL&P (Pollution Control Bonds - Series A, Tax Exempt
Refunding) dated as of September 1, 1993. (Exhibit 4.2.21,
1993 NU Form 10-K, File No. 1-5324)
C.2.24 Loan Agreement between Connecticut Development Authority
and CL&P (Pollution Control Bonds - Series B, Tax Exempt
Refunding) dated as of September 1, 1993. (Exhibit 4.2.22,
1993 NU Form 10-K, File No. 1-5324)
C.2.25 Amended and Restated Loan Agreement between Connecticut
Development Authority and CL&P (Pollution Control Revenue
Bond - 1996A Series) dated as of May 1, 1996 and Amended
and Restated as of January 1, 1997. (Exhibit 4.2.24, 1996
NU Form 10-K, File No. 1-5324)
C.2.25.1 Amended and Restated Indenture of Trust between
Connecticut Development Authority and the Trustee
(CL&P Pollution Control Revenue Bond-1996A Series),
dated as of May 1, 1996 and Amended and Restated
as of January 1, 1997. (Exhibit 4.2.24.1, 1996
NU Form 10-K, File No. 1-5324)
C.2.25.2 Standby Bond Purchase Agreement among CL&P,
Societe Generale, New York Branch and the Trustee,
dated January 23, 1997. (Exhibit 4.2.24.2, 1996 NU
Form 10-K, File No. 1-5324)
C.2.25.3 Amendment No. 1, dated January 21, 1998, to the
Standby Bond Purchase Agreement, dated January 23,
1997. (Exhibit 4.2.24.3, 1997 NU Form 10-K, File
No. 1-5324)
C.2.25.4 Amendment No. 2, dated December 9, 1998 to the
Standby Bond Purchase Agreement, dated January 23,
1997. (Exhibit 4.2.25.14, 1998 NU Form 10-K File,
No. 1-5324)
C.2.25.5 AMBAC Municipal Bond Insurance Policy issued by
the Connecticut Development Authority (CL&P
Pollution Control Revenue Bond-1996A Series),
effective January 23, 1997. (Exhibit 4.2.24.3,
1996 NU Form 10-K, File No. 1-5324)
C.2.26 Amended and Restated Limited Partnership Agreement (CL&P
Capital, L.P.) among CL&P, NUSCO and the persons who became
limited partners of CL&P Capital, L.P. in accordance with
the provisions thereof dated as of January 23, 1995 (MIPS).
(Exhibit A.1 (Execution Copy), File No. 70-8451)
C.2.27 Indenture between CL&P and Bankers Trust Company, Trustee
(Series A Subordinated Debentures), dated as of January 1,
1995 (MIPS). (Exhibit B.1 (Execution Copy), File No. 70-8451)
C.2.28 Payment and Guaranty Agreement of CL&P dated as of January 23,
1995 (MIPS). (Exhibit B.3 (Execution Copy), File No. 70-8451)
C.3 Public Service Company of New Hampshire
C.3.1 First Mortgage Indenture dated as of August 15, 1978 between
PSNH and First Fidelity Bank, National Association, New
Jersey, Trustee. (Composite including all ten amendments to
May 16, 1991)(Exhibit 4.4.1, 1992 NU Form 10-K, File No.
1-5324)
C.3.1.1 Tenth Supplemental Indenture dated as of May 1,
1991 between PSNH and First Fidelity Bank, National
Association. (Exhibit 4.1, PSNH Current Report on
Form 8-K dated February 10, 1992, File No. 1-6392)
C.3.2 Revolving Credit Agreement, dated as of April 23, 1998
(includes an Assignment and Security Agreement related to
Accounts Receivable). (Exhibit 4.3.2, 1998 NU Form 10-K,
File No. 1-5324)
C.3.3 Series A (Tax Exempt New Issue) PCRB Loan and Trust Agreement
dated as of May 1, 1991. (Exhibit 4.2, PSNH Current Report
on Form 8-K dated February 10, 1992, File No. 1-6392)
C.3.4 Series B (Tax Exempt Refunding) PCRB Loan and Trust Agreement
dated as of May 1, 1991. (Exhibit 4.3, PSNH Current Report
on Form 8-K dated February 10, 1992, File No. 1-6392)
C.3.5 Series C (Tax Exempt Refunding) PCRB Loan and Trust Agreement
dated as of May 1, 1991. (Exhibit 4.4, PSNH Current Report
on Form 8-K dated February 10, 1992, File No. 1-6392)
C.3.6 Series D (Taxable New Issue) PCRB Loan and Trust Agreement
dated as of May 1, 1991. (Exhibit 4.5, PSNH Current Report
on Form 8-K dated February 10, 1992, File No. 1-6392)
C.3.6.1 First Supplement to Series D (Tax Exempt Refunding
Issue) PCRB Loan and Trust Agreement dated as of
December 1, 1992. (Exhibit 4.4.5.1, 1992 NU Form
10-K, File No. 1-5324)
C.3.6.2 Second Supplement to Series D PCRB Loan and Trust
Agreement dated as of May 1, 1995. (Exhibit
4.3.6.2, 1998 NU Form 10-K, File No. 1-5324)
C.3.6.3 Second Series D (May 1, 1991 Taxable New Issue)
PCRB Letter of Credit and Reimbursement Agreement
dated as of April 23, 1998. (Exhibit 4.3.6.3, 1998
NU Form 10-K, File 1-5324)
C.3.7 Series E (Taxable New Issue) PCRB Loan and Trust Agreement
dated as of May 1, 1991. (Exhibit 4.6, PSNH Current Report
on Form 8-K dated February 10, 1992, File No. 1-6392)
C.3.7.1 First Supplement to Series E (Tax Exempt Refunding
Issue) PCRB Loan and Trust Agreement dated as of
December 1, 1993. (Exhibit 4.3.8.1, 1993 NU Form
10-K, File No. 1-5324)
C.3.7.2 Second Supplement to Series E PCRB Loan and Trust
Agreement dated as of May 1, 1995. (Exhibit
4.3.7.2, 1998 NU Form 10-K, File No. 1-5324)
C.3.7.3 Amended and Restated Second Series E (May 1, 1991
Taxable New Issue) PCRB Letter of Credit and
Reimbursement Agreement dated as of April 23, 1998.
(Exhibit 4.3.7.4, 1998 NU Form 10-K File No. 1-5324)
C.4 Western Massachusetts Electric Company
C.4.1 First Mortgage Indenture and Deed of Trust between WMECO and
Old Colony Trust Company (now The First National Bank of
Boston), Trustee, dated as of August 1, 1954. (Exhibit 4.4.1,
1993 NU Form 10-K, File No. 1-5324)
Supplemental Indentures thereto dated as of:
C.4.2 October 1, 1954. (Exhibit 4.4.2, 1998 NU Form 10-K, File No.
1-5324)
C.4.3 March 1, 1967. (Exhibit 4.4.3, 1997 NU Form 10-K, File No.
1-5324)
C.4.4 July 1, 1973. (Exhibit 2.10, File No. 2-68808)
C.4.5 December 1, 1992. (Exhibit 4.15, File No. 33-55772)
C.4.6 January 1, 1993. (Exhibit 4.5.13, 1992 NU Form 10-K, File
No. 1-5324)
C.4.7 March 1, 1994. (Exhibit 4.4.12, 1993 NU Form 10-K, File No.
1-5324)
C.4.8 May 1, 1997. (Exhibit 4.11, File No. 33-51185)
C.4.9 July 1, 1997. (Exhibit 4.4.10, 1997 NU form 10-K, File No.
1-5324)
C.4.10 May 1, 1998. (Exhibit 4.4.10, 1998 NU Form 10-K, File No.
1-5324)
C.4.11 May 1, 1998. (Exhibit 4.4.11, 1998 NU Form 10-K File No.
1-5324)
C.4.12 Loan Agreement between Connecticut Development Authority
and WMECO (Pollution Control Bonds - Series A, Tax Exempt
Refunding) dated as of September 1, 1993. (Exhibit 4.4.13,
1993 NU Form 10-K, File No. 1-5324)
C.5 North Atlantic Energy Corporation
C.5.1 First Mortgage Indenture and Deed of Trust between NAEC and
United States Trust Company of New York, Trustee, dated as of
June 1, 1992. (Exhibit 4.6.1, 1992 NU Form 10-K, File No.
1-5324)
C.5.2 Term Credit Agreement dated as of November 9, 1995. (Exhibit
4.5.2, 1995 NU Form 10-K, File No. 1-5324)
C.6 Northeast Nuclear Energy Company
C.6.1 Millstone Technical Building Note Agreement dated as of
December 21, 1993 by and between The Prudential Insurance
Company of America and NNECO. (Exhibit 10.28, 1993 NU Form
10-K, File No. 1-5324)
C.7 Holyoke Water Power Company
C.7.1 Loan Agreement between City of Holyoke, Massachusetts, acting
by and through its Industrial Development Financing Authority,
and Holyoke Water Power Company, dated as of November 1, 1988
(Pollution Control Bonds). (Exhibit C.4.8, 1989 NU Form U5S,
File No. 30-246)
C.7.2 Loan and Trust Agreement between Massachusetts Industrial
Finance Authority and Holyoke Water Power Company, dated as
of December 1, 1992. (Exhibit C.7.2, 1992 NU Form U5S, File
No. 30-246)
C.7.3 Loan Agreement between Massachusetts Industrial Finance
Authority and Holyoke Water Power Company, dated as of
December 1, 1990 (Pollution Control Bonds). (Exhibit
C.4.3, 1990 NU Form U5S, File No. 30-246)
C.8 The Rocky River Realty Company
C.8.1 Note Agreement dated as of June 1, 1973 by and between The
Rocky River Realty Company (RRR) and the Purchasers named
therein (the 7-7/8% Note Agreement), including the Several
Guarantee of CL&P, HELCO, and WMECO of RRR's 7-7/8% Note
Agreement. (File No. 70-4637)
C.8.2 Note Agreement dated April 14, 1992, by and between The
Rocky River Realty Company (RRR) and Purchasers named therein
(Connecticut General Life Insurance Company, Life Insurance
Company of North America, INA Life Insurance Company of New
York, Life Insurance Company of Georgia), with respect to
RRR's sale of $15 million of guaranteed senior secured notes
due 2007 and $28 million of guaranteed senior secured notes
due 2017. (Exhibit 10.52, 1992 NU Form 10-K, File No.
1-5324)
C.8.3 Amendment to Note Agreement, dated September 26, 1997.
(Exhibit 10.3.1, 1997 NU Form 10-K, File No. 1-5324)
C.8.4 Note Guaranty dated April 14, 1992 by Northeast Utilities
pursuant to Note Agreement dated April 14, 1992 between RRR
and Note Purchasers, for the benefit of The Connecticut
National Bank as Trustee, the Purchasers and the owners of
the notes. (Exhibit 10.52.1, 1992 NU Form 10-K, File No.
1-5324)
C.8.5 Extension of Note Guaranty, dated September 26, 1997.
(Exhibit 10.31.2.1, 1997 NU Form 10-K, File No. 1-5324)
C.8.6 Assignment of Leases, Rents and Profits, Security Agreement
and Negative Pledge, dated as of April 14, 1992 among RRR,
NUSCO and The Connecticut National Bank as Trustee, securing
notes sold by RRR pursuant to April 14, 1992 Note Agreement.
(Exhibit 10.52.2, 1992 NU Form 10-K, File No. 1-5324)
C.8.7 Modification of and Confirmation of Assignment of Leases,
Rents and Profits, Security Agreement and Negative Pledge,
dated as of September 26, 1997. (Exhibit 10.31.3.1, 1997
NU Form 10-K, File No. 1-5324)
C.8.8 Purchase and Sale Agreement, dated July 28, 1997 by and
between RRR and the Sellers and Purchasers named therein.
(Exhibit 10.31.4, 1997 NU Form 10-K, File No. 1-5324)
C.8.9 Purchase and Sale Agreement, dated September 26, 1997 by
and between RRR and the Purchaser named therein. (Exhibit
10.31.5, 1997 NU Form 10-K, File No. 1-5324)
C.9 Southwest HEC Energy Services, L.L.C.
C.9.1 Promissory Note of Southwest HEC Energy Services, L.L.C.
to Arizona Public Service Company, dated December 7, 1995.
(Exhibit C.9.1, 1995 NU Form U5S, File No. 30-246)
C.10 CL&P Receivables Corporation
C.10.1 Receivables Purchase and Sale Agreement (CL&P and CL&P
Receivables Corporation), dated as of September 30, 1997.
(Exhibit 10.49, 1997 NU Form 10-K, File No. 1-5324)
C.10.2 Amendment to Exhibit C.10.1 dated September 29, 1998.
(Exhibit 10.49.1, 1998 NU Form 10-K, File No. 1-5324)
C.10.3 Purchase and Contribution Agreement (CL&P and CL&P
Receivables Corporation), dated as of September 30, 1997.
(Exhibit 10.49.1, 1997 NU Form 10-K, File No. 1-5324)
C.11 WMECO Receivables Corporation
C.11.1 Receivables Purchase Agreement (WMECO and WMECO Receivables
Corporation), dated as of May 22, 1997. (Exhibit No. 10.50,
1997 NU Form 10-K, File No. 1-5324)
C.11.2 Purchase and Sale Agreement (WMECO and WMECO Receivables
Corporation), dated as of May 22, 1997. (Exhibit No. 10.50.1,
1997 NU Form 10-K, File No. 1-5324)
D.1 Amended and Restated Tax Allocation Agreement, dated as of January 1,
1990. (Exhibit D, 1994 NU Form U5S, File No. 30-246)
D.2 First Amendment, dated as of October 26, 1998, to the Amended and
Restated Tax Allocation Agreement, dated as of January 1, 1990.
(Exhibit D, Amendment No. 2 to 1997 NU Form U5S, File No. 30-246)
* G. Financial Data Schedules
G.1 Financial Data Schedule of NU.
G.2 Financial Data Schedule of CL&P.
G.3 Financial Data Schedule of WMECO.
G.4 Financial Data Schedule of PSNH.
G.5 Financial Data Schedule of NAEC.
G.6 Financial Data Schedule of HWP.
G.7 Financial Data Schedule of HP&E.
* H. Organizational chart showing the relationship of foreign utility
companies to the other NU system companies.
* I. Audited 1998 financial reports of the following foreign utility
company:
- Ave Fenix Energia, S.A.
Item 10 Exhibit H
Information included in Item 1, "System Companies and Investments Therein"
provides the relationship of all system companies. The following shows the
relationship of the foreign utility companies:
Northeast Utilities (Parent Company)
- - Charter Oak Energy, Inc. (100% owned by Northeast Utilities)
- COE Argentina II Corp. (100% owned by Charter Oak Energy, Inc.)
- COE Ave Fenix Corporation (100% owned by Charter Oak Energy, Inc.)
- COE Development Corporation (100% owned by Charter Oak Energy, Inc.)
ITEM 10. Exhibit I
Ave Fenix Energia S.A.
Balance Sheet at December 31, 1998
(Audited)
In pesos
ASSETS
CURRENT ASSETS
Cash and banks 2,266,056.72
Trade receivables 3,782,582.88
Other receivables 2,802,540.76
Total current assets 8,851,179.86
NONCURRENT ASSETS
Other receivables 15,524,337.95
Fixed assets 67,991,184.83
Intangible assets 1,002,477.97
Total noncurrent assets 84,518,000.75
Total assets 93,369,180.61
LIABILITIES
CURRENT LIABILITIES
Accounts payable 2,488,560.54
Financial loans 400,000.00
Taxes 3,733.96
Payroll and social security 10,427.77
Other debt 87,482.36
Total current liabilities 2,990,204.63
NONCURRENT LIABILITIES
Financial loans 42,200,000.08
Other liabilities 3,717,544.04
Total noncurrent liabilities 45,917,544.12
Total liabilities 48,907,748.75
SHAREHOLDER'S EQUITY (as per respective statement) 44,461,431.86
Total 93,369,180.61
ITEM 10. Exhibit I
Ave Fenix Energia S.A.
Statement of Income for the year ended December 31, 1998
(Audited)
In pesos
Sales of Electricity 19,000,784.34
Cost of electricity sold (21,996,277.67)
Administrative expenses (1,113,946.48)
Selling expenses (19,184.93)
Other income 210,559.63
Tax on minimum notional income (942,988.13)
Financial and holding results (3,226,606.86)
Net loss (8,087,660.10)
<TABLE>
<CAPTION>
Item 10. Exhibit I
Ave Fenix Energia S.A.
Statement of Changes in Shareholders' Equity for the year ended
December 31, 1998
(Audited)
Unappropriated
Shares Irrevocable Retained
Outstanding Contributions Earnings Total
(in pesos)
<S> <C> <C> <C> <C>
Balances at January 1, 1998 320,000.00 57,592,757.27 (7,863,665.31) 50,049,091.96
Irrevocable contributions
received during the year - 2,500,000.00 - 2,500,000.00
Net loss as per statement of
income - - (8,087,660.10) (8,087,660.10)
Balances at December 31, 1998 320,000.00 60,092,757.27 (15,951,325.41) 44,461,431.86
</TABLE>
Item 10. Exhibit I
Ave Fenix Energia S.A.
Statement of Changes in Working Capital for the year ended
December 31, 1998
(Audited)
(in pesos)
CHANGES IN WORKING CAPITAL
Working capital at the beginning of year 5,807,630.30
Increase in current assets 768,153.89
Increase in current liabilities (714,808.98)
Increase in working capital 53,344.93
Working capital at the end of year 5,860,975.23
CAUSES OF CHANGES IN WORKING CAPITAL
Net loss (8,087,660.10)
Add: Expenses not requiring working capital
Fixed asset depreciation for the year 3,516,691.88
Intangible asset amortization 727,230.01
Setting-up of the provision for equipment repair
and maintenance expenses 1,489,038.04
Working capital generated in ordinary operations (2,354,700.17)
Other uses
Fixed asset purchase (49,695.95)
Decrease in long-term loans (399,999.92)
(449,695.87)
Total uses (2,804,396.06)
Sources
Book value of fixed asset deletions 71,355.66
Shareholders' contributions 2,500,000.00
Decrease in other noncurrent receivables 286,385.31
Total sources 2,857,740.97
increase in working capital 53,344.93
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