UNITED STATES OF AMERICA
before the
SECURITIES AND EXCHANGE COMMISSION
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
In the matter of
HEC Inc. Report for Period
24 Prime Parkway January 1, 1999 to
Natick, MA 01760 March 31, 1999
Pursuant to Rule 24
File No. 70-8076 and 70-8086
This report is filed under Rule 24 of the Public Utility Holding Company Act
of 1935 by HEC Inc.(HEC), a wholly owned subsidiary of Northeast Utilities, a
registered holding company. Pursuant to HCAR No. 35-26108 and 35-26335 and
35-26564(the "Orders"), HEC is authorized to provide energy management
services, demand side management services and consulting services. HEC is
required to report quarterly on services provided during the previous
quarter. Accordingly, this report includes the following information:
1. A summary balance sheet and an income statement (unaudited) for the
three-month period ended March 31, 1999. See Exhibit A.
2. A narrative description of HEC's activities undertaken during the
quarter and the type of customers for which services were rendered. Exhibit B.
As requested by order of this Commission pursuant to the Public Utility
Holding Company Act of 1935, HEC has duly caused this report to be signed on
the twenty seventh day of April 1999.
HEC Inc.
By:/S/ Linda A. Jensen
Vice President - Finance
EXHIBIT A
HEC INC.
BALANCE SHEET - March 31, 1999
ASSETS
CURRENT ASSETS: 1999
-----------
Cash and cash equivalents $ 50,690
Contract receivables, current,
less allowance for uncollectibles of $301,230 6,884,588
Other current assets 150,470
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Total current assets 7,085,748
-----------
PROPERTY AND EQUIPMENT 4,326,885
Less accumulated depreciation and amortization 3,113,911
-----------
Net property and equipment 1,212,974
-----------
OTHER ASSETS 119,063
TOTAL ASSETS $ 8,417,785
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LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES:
Accounts Payable $1,710,932
Accrued Expenses 373,215
Accrued Income Taxes 223,048
Short-Term Borrowing NU Moneypool 1,750,000
-----------
Total current liabilities 4,057,195
-----------
OTHER LIABILITIES:
Deferred income tax liability 168,929
Other 1,103,833
-----------
Total other liabilities 1,272,762
-----------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDER'S EQUITY
Common stock, $1 par value.
Authorized and issued 100 shares 100
Additional paid-in-capital 4,000,000
Foreign Currency Exchange
Accumulated Deficit (912,272)
-----------
Total stockholder's equity 3,087,828
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 8,417,785
============
HEC INC.
STATEMENT OF OPERATION
FOR THE QUARTER ENDED MARCH 31, 1999
REVENUES $ 5,727,345
COST OF REVENUES 4,942,764
-----------
Gross profit 784,581
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 1,134,657
-----------
Operating income (350,076)
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INTEREST INCOME (EXPENSE)
Interest income 23,236
Interest expense (21,693)
-----------
1,543
-----------
Income before income tax expense (348,533)
INCOME TAX EXPENSE (200)
Net Income (Loss) $(348,733)
===========
EXHIBIT B
HEC INC.
REPORT FOR JANUARY 1 - MARCH 31, 1999
NARRATIVE DESCRIPTION OF SERVICES
Energy Management Services
HEC provided the following services to clients in the period: energy audits
(the identification of energy and other resource cost reduction
opportunities); design of energy conservation measures including energy
efficient lighting, energy efficient motors, energy management systems,
heating, ventilating and air conditioning equipment retrofits, variable speed
drives; the management of and direct installation of energy conservation
equipment of the same type designed; assistance in identifying and arranging
third-party financing for project installations; training in the operation of
energy efficient equipment and identification of energy efficiency
opportunities; system commissioning and reporting of program results. The
majority of these services were performed for schools, hospitals and other
municipal facilities under utility-sponsored programs. Other services
provided consisted primarily of evaluation of various heating and/or air
conditioning equipment configurations for customers or utilities and
monitoring and/or evaluating the demand side management program installations
of non-affiliated utilities.
HEC consulting activities consisted primarily of design and specification of
energy consuming equipment for clients including schools, hospitals and
commercial facilities.
