<PAGE>
March 1, 1995
Securities and Exchange Commission
450 Fifth Street, N.W.
Judiciary Plaza
Washington, DC 20549
Re: Yankee Energy System, Inc.
Ladies and Gentlemen:
Enclosed for electronic filing on behalf of the above-referenced
company, please find its statement on Form U-3A-2 with respect to
Yankee Energy System's exemption under Rule 2 from the provisions
of the Public Utility Holding Act of 1935.
If you have any questions, please call Carolyn A. Joy at (203)
639-4412.
The amount of $500 was wire transferred on Wednesday, March 1, 1995 to
cover the cost of filing.
Very truly yours,
s/Mary J. Healey
Vice President, General
Counsel & Secretary
Enclosures
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM U-3A-2
STATEMENT BY HOLDING COMPANY CLAIMING EXEMPTION UNDER RULE U-3A-2
FROM THE PROVISIONS OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF
1935
YANKEE ENERGY SYSTEM, INC.
hereby files with the Securities Exchange Commission, pursuant to
Rule 2, its statement claiming exemption as a holding company
from the provisions of the Public Utility Holding Company Act of
1935, and submits the following information:
1. Yankee Energy System, Inc. ("Yankee Energy") is a corporation
organized under the laws of the State of Connecticut. Yankee
Energy is the holding company for Yankee Gas Services Company
("Yankee Gas"), a gas utility company, and four non-utility
subsidiaries, Housatonic Corporation ("Housatonic"), NorConn
Properties, Inc. ("NorConn"), Yankee Energy Financial Services
Company ("Yankee Financial") and Yankee Energy Services Company
("Yankee Services"). These companies are referred to
collectively herein as "the Yankee Energy System." Yankee
Energy's business essentially is confined to the ownership of its
subsidiaries. Yankee Gas, the principal subsidiary of Yankee
Energy, is a Connecticut corporation that purchases, distributes
and sells natural gas at retail in Connecticut.
Yankee Energy conducts non-utility operations through four
subsidiaries, Housatonic, NorConn, Yankee Financial and Yankee
Services. All four non-utility subsidiaries are Connecticut
corporations. Housatonic owns the Yankee Energy System's
investment in the Iroquois Gas Transmission System Project and
will be used for no other business purpose. NorConn was formed
to hold non-utility property interests that may be acquired by
the Yankee Energy System. Yankee Financial was formed to
facilitate the growth in gas sales by providing financing for
natural gas installations. Yankee Services was created in 1993
for the primary purpose of stimulating gas sales for Yankee Gas
by funding gas-fired electric generation projects at selected
customer sites.
Yankee Energy and Yankee Gas are predominantly intrastate in
character. Each carries on its business entirely within the
State of Connecticut, the state in which each is organized.
2. Yankee Gas purchases, distributes and sells natural gas to
approximately 177,000 residential, commercial and industrial
users in Connecticut. Its service territory consists of 67
cities and towns, and covers approximately 2,200 square miles,
all in Connecticut.
<PAGE>
Yankee Gas assets include distribution lines (mains and
services), meters, pumps, valves and pressure and flow
controllers, all located in Connecticut. Yankee Gas owns
approximately 2,713 miles of distribution mains, 126,881 service
lines and 176,283 active meters for customer use, all located in
Connecticut. Yankee Gas also owns five propane production
facilities and one storage facility, all located in Connecticut.
3. The following information is for the calendar year 1994.
a. Number of Mcf of natural or manufactured gas distributed
at retail: 42,497,411.
b. Number of Mcf of natural gas distributed at retail
outside the State of Connecticut: None.
c. Number of Mcf of natural gas sold at wholesale outside
of the State of Connecticut, or at the boundary of the
State of Connecticut: 369,880.
d. Number of Mcf of natural or manufactured gas purchased
outside the State of Connecticut, or at the Connecticut
state line: In 1994, Yankee Gas purchased 42,469,110
Mcf of natural gas. All gas purchased is ultimately
delivered to Connecticut via interstate pipelines.
4. None.
Attached as Exhibit A is a consolidating statement of income and
surplus for Yankee Energy and its subsidiaries for the last
calendar year, together with a consolidating balance sheet for
Yankee Energy and its subsidiaries as of the close of the last
calendar year. Attached as Exhibit B is a Financial Data
Schedule which sets forth financial and other data applicable to
Yankee Energy and its subsidiaries on a consolidated basis.
The above-named claimant has caused this statement to be duly
executed on its behalf by an authorized officer on this 1st day
of March, 1995.
YANKEE ENERGY SYSTEM, INC.
By: s/Mary J. Healey
Mary J. Healey
Vice President, General
Counsel & Secretary
SEAL
<PAGE>
ATTEST: s/Charles E. Gooley
Name: Charles E. Gooley
Title: Executive Vice President
Name, title and address of officer to whom notices and
correspondence concerning this statement should be addressed:
Mary J. Healey
Vice President, General Counsel & Secretary
Yankee Energy System, Inc.
599 Research Parkway
Meriden, CT 06450
<PAGE>
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATING STATEMENTS OF INCOME (a)
TWELVE MONTHS ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
YANKEE ENERGY YANKEE GAS NORCONN
SYSTEM (Parent) SERVICES CO. PROPERTIES
__________________________________________
<S> <C> <C> <C>
Operating Revenues $307,796 $871
Less: Cost of Gas 164,295
__________________________________________
Revenues, Net of
Cost of Gas 143,501 871
__________________________________________
Other Operating Expenses:
Operations $ 117 55,556 20
Maintenance 7,583
Depreciation 16,478 192
Federal and State
Income Taxes 11,598 (8)
Taxes Other Than
Income Taxes 22,383
__________________________________________
Total Other Operating
Expenses 117 113,598 204
__________________________________________
Operating Inc (Loss) (117) 29,903 667
__________________________________________
Other Income, (Expense) Net:
Allowance for Other Funds
Used During Construction 188
Equity in Earnings of
Subsidiaries 17,832
Federal and State
Income Taxes 492 (79)
Other, Net 386 127
__________________________________________
Other Inc, (Exp) Net 18,218 807 (79)
__________________________________________
Income (Loss) Before
Interest Charges 18,101 30,710 588
__________________________________________
Interest Charges:
Interest on Long-
Term Debt 13,193 384
Other Interest 397 447 89
Allowance for Borrowed
Funds Used During
Construction (231)
__________________________________________
Interest Chrgs, Net 397 13,409 473
__________________________________________
Net Income (Loss) $17,704 $ 17,301 $115
__________________________________________
__________________________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
<PAGE>
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATING STATEMENTS OF INCOME (a)
TWELVE MONTHS ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
YANKEE YANKEE
ENERGY ENERGY
HOUSATONIC FINCIAL SRVS PRODUCTION
CORPORATION COMPANY SRVCS, INC.
__________________________________________
<S> <C> <C> <C>
Operating Revenues
Less: Cost of Gas
__________________________________________
Revenues, Net of
Cost of Gas
__________________________________________
Other Operating Expenses:
Operations $ 48 $ 45 $147
Maintenance
Depreciation
Federal and State
Income Taxes (20)
Taxes Other Than
Income Taxes 137
__________________________________________
Total Other Operating
Expenses 185 45 127
__________________________________________
Operating Inc (Loss) (185) (45) (127)
__________________________________________
Other Income, (Expense) Net:
Allowance for Other Funds
Used During Construction
Equity in Earnings of
Subsidiaries
Federal and State
Income Taxes (1,030) (62) 89
Other, Net 3,349 437 100
__________________________________________
Other Inc, (Exp) Net 2,319 375 189
__________________________________________
Income (Loss) Before
Interest Charges 2,134 330 62
__________________________________________
Interest Charges:
Interest on Long-
Term Debt 286
Other Interest 27 246 121
Allowance for Borrowed
Funds Used During
Construction
__________________________________________
Interest Chrgs, Net 313 246 121
__________________________________________
Net Income (Loss) $1,821 $ 84 $(59)
__________________________________________
__________________________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
<PAGE>
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATED STATEMENTS OF INCOME (a)
TWELVE MONTHS ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
ELIMINATIONS CONSOLIDATED
______________________________
<S> <C> <C>
Operating Revenues $ 871 $307,796
Less: Cost of Gas 164,295
______________________________
Revenues, Net of
Cost of Gas 871 143,501
______________________________
Other Operating Expenses:
Operations 871 55,063
Maintenance 7,583
Depreciation 16,670
Federal and State
Income Taxes 11,570
Taxes Other Than
Income Taxes 22,520
______________________________
Total Other Operating
Expenses 871 113,406
______________________________
Operating Inc (Loss) --- 30,095
______________________________
Other Income, (Expense) Net:
Allowance for Other Funds
Used During Construction 188
Equity in Earnings of
Subsidiaries 17,832 ---
Federal and State
Income Taxes (590)
Other, Net 441 3,958
______________________________
Other Inc, (Exp) Net 18,273 3,556
______________________________
Income (Loss) Before
Interest Charges 18,273 33,651
______________________________
Interest Charges:
Interest on Long-
Term Debt 13,863
Other Interest 440 886
Allowance for Borrowed
Funds Used During
Construction (231)
______________________________
Interest Chrgs, Net 440 14,518
______________________________
Net Income (Loss) $17,833 $ 19,133
______________________________
______________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
<PAGE>
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATING BALANCE SHEETS (a)
ASSETS
AT DECEMBER 31, 1994
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
YANKEE ENERGY YANKEE GAS NORCONN
SYSTEM (Parent) SERVICES CO. PROPERTIES
__________________________________________
<S> <C> <C> <C>
Utility Plant, at
Original Cost $473,407
Less: Accumulated Provision
for Depreciation 167,672
__________________________________________
305,735
Construction Work in Progress 10,534
__________________________________________
Total Net Utility Plant 316,269
__________________________________________
Other Property and Investments:
Other Property 174 7,452
Investments in Subsidiary
Companies, at Equity 156,313
Other Investments 68
__________________________________________
Total Other Property
and Investments 156,313 242 7,452
__________________________________________
Current Assets:
Cash 78 652 47
Accounts Receivable,
Net 12,179 33,427 84
Fuel Supplies 10,228
Other Material and Supplies 1,483
Recoverable Gas Costs 335
Accrued Utility Revenues 15,955
Current Portion Accumulated
Deferred Income Taxes (142)
Prepayments and Other 1,885
__________________________________________
Total Current Assets 12,257 63,823 131
__________________________________________
Unamortized Debit Expense 607 19
Deferred Gas Costs
and Other (201) 9,666
Recoverable Pipeline
Transition Costs
Recoverable Environmental
Cleanup Costs 37,660
Recoverable Income Taxes 27,654
Recoverable Postretirement
Benefit Costs 1,773
__________________________________________
Total Assets $168,369 $457,694 $7,602
__________________________________________
__________________________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
<PAGE>
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATING BALANCE SHEETS (a)
ASSETS
AT DECEMBER 31, 1994
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
YANKEE YANKEE
ENERGY ENERGY
HOUSATONIC FINCIAL SRVS PRODUCTION
CORPORATION COMPANY SRVCS, INC.
__________________________________________
<S> <C> <C> <C>
Utility Plant, at
Original Cost
Less: Accumulated Provision
for Depreciation
__________________________________________
Construction Work in Progress
__________________________________________
Total Net Utility Plant
__________________________________________
Other Property and Investments:
Other Property
Investments in Subsidiary
Companies, at Equity
Other Investments 18,853 2,262
__________________________________________
Total Other Property
and Investments 18,853 2,262
__________________________________________
Current Assets:
Cash 269 135 20
Accounts Receivable,
Net (1) 4,713
Fuel Supplies
Other Material and Supplies
Recoverable Gas Costs
Accrued Utility Revenues
Current Portion Accumulated
Deferred Income Taxes
Prepayments and Other
__________________________________________
Total Current Assets 268 4,848 20
__________________________________________
Unamortized Debit Expense
Deferred Gas Costs
and Other
Recoverable Pipeline
Transition Costs
Recoverable Environmental
Cleanup Costs
Recoverable Income Taxes (120)
Recoverable Postretirement
Benefit Costs
__________________________________________
Total Assets $19,001 $4,848 $2,282
__________________________________________
__________________________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
<PAGE>
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATING BALANCE SHEETS (a)
ASSETS
AT DECEMBER 31, 1994
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
ELIMINATIONS CONSOLIDATED
_____________________________
<S> <C> <C>
Utility Plant, at
Original Cost $473,407
Less: Accumulated Provision
for Depreciation 167,672
_____________________________
305,735
Construction Work in Progress 10,534
_____________________________
Total Net Utility Plant 316,269
_____________________________
Other Property and Investments:
Other Property 7,626
Investments in Subsidiary
Companies, at Equity 156,313 ---
Other Investments 21,183
_____________________________
Total Other Property
and Investments 156,313 28,809
_____________________________
Current Assets:
Cash 1,201
Accounts Receivable,
Net 12,429 37,973
Fuel Supplies 10,228
Other Material and Supplies 1,483
Recoverable Gas Costs 335
Accrued Utility Revenues 15,955
Current Portion Accumulated
Deferred Income Taxes (142)
Prepayments and Other 1,885
_____________________________
Total Current Assets 12,429 68,918
_____________________________
Unamortized Debit Expense 626
Deferred Gas Costs
and Other 9,464
Recoverable Pipeline
Transition Costs ---
Recoverable Environmental
Cleanup Costs 37,660
Recoverable Income Taxes 27,534
Recoverable Postretirement
Benefit Costs 1,773
_____________________________
Total Assets $168,742 $491,053
_____________________________
_____________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
<PAGE>
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATING BALANCE SHEETS (a)
CAPITALIZATION AND LIABILITIES
AT DECEMBER 31, 1994
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
YANKEE ENERGY YANKEE GAS NORCONN
SYSTEM (Parent) SERVICES CO. PROPERTIES
__________________________________________
<S> <C> <C> <C>
Capitalization:
Common Shareholders'
Equity $154,196 $143,220 $1,162
Long-Term Debt, Net of
Current Portion 1,400 119,266 3,750
__________________________________________
Total Capitalization 155,596 262,486 4,912
__________________________________________
Current Liabilities:
Notes Payable to
Associated Companies 2,450
Notes Payable to Banks 12,100 25,100
Long-Term Debt,
Current Portion 400 21,367 150
Accounts Payable 143 18,229 35
Accrued Taxes 40 2,811 60
Accrued Interest 90 4,244 17
Refundable Energy Costs (108)
Pipeline Transition Costs
Other Current Liabilities 3,601
__________________________________________
Total Current
Liabilities 12,773 75,244 2,712
__________________________________________
Accumulated Deferred
Income Taxes 38,753
Unfunded Deferred
Income Taxes 27,654 (22)
Accumulated Deferred Investment
Tax Credits 9,740
Reserve for Environmental
Cleanup Costs 35,000
Unfunded Postretirement
Benefits Costs 1,773
Other Deferred Credits 7,044
__________________________________________
Total Capitalization
and Liabilities $168,369 $457,694 $7,602
__________________________________________
__________________________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
<PAGE>
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATING BALANCE SHEETS (a)
CAPITALIZATION AND LIABILITIES
AT DECEMBER 31, 1994
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
YANKEE YANKEE
ENERGY ENERGY
HOUSATONIC FINCIAL SRVS PRODUCTION
CORPORATION COMPANY SRVCS, INC.
__________________________________________
<S> <C> <C> <C>
Capitalization:
Common Shareholders'
Equity $12,032 $ 33 $ (133)
Long-Term Debt, Net of
Current Portion
__________________________________________
Total Capitalization 12,032 33 (133)
__________________________________________
Current Liabilities:
Notes Payable to
Associated Companies 2,250 4,700 2,500
Notes Payable to Banks
Long-Term Debt,
Current Portion 2,000
Accounts Payable 7 7 1
Accrued Taxes 773 72 (90)
Accrued Interest 34 36 21
Refundable Energy Costs
Pipeline Transition Costs
Other Current Liabilities 3
__________________________________________
Total Current
Liabilities 5,064 4,815 2,435
__________________________________________
Accumulated Deferred
Income Taxes 2,025
Unfunded Deferred
Income Taxes (120) (20)
Accumulated Deferred Investment
Tax Credits
Reserve for Environmental
Cleanup Costs
Unfunded Postretirement
Benefits Costs
Other Deferred Credits
__________________________________________
Total Capitalization
and Liabilities $19,001 $4,848 $2,282
__________________________________________
__________________________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
<PAGE>
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATING BALANCE SHEETS (a)
CAPITALIZATION AND LIABILITIES
AT DECEMBER 31, 1994
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
ELIMINATIONS CONSOLIDATED
_____________________________
<S> <C> <C>
Capitalization:
Common Shareholders'
Equity $156,313 $154,196
Long-Term Debt, Net of
Current Portion 124,416
__________________________
Total Capitalization 156,313 278,612
__________________________
Current Liabilities:
Notes Payable to
Associated Companies 11,900 ---
Notes Payable to Banks 37,200
Long-Term Debt,
Current Portion 23,917
Accounts Payable 443 17,979
Accrued Taxes 3,666
Accrued Interest 86 4,356
Refundable Energy Costs (108)
Pipeline Transition Costs ---
Other Current Liabilities 3,604
__________________________
Total Current
Liabilities 12,429 90,614
__________________________
Accumulated Deferred
Income Taxes 40,778
Unfunded Deferred
Income Taxes 27,492
Accumulated Deferred Investment
Tax Credits 9,740
Reserve for Environmental
Cleanup Costs 35,000
Unfunded Postretirement
Benefits Costs 1,773
Other Deferred Credits 7,044
__________________________
Total Capitalization
and Liabilities $168,742 $491,053
__________________________
__________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
<PAGE>
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATING STATEMENTS OF
COMMON SHAREHOLDERS' EQUITY (a)
TWELVE MONTHS ENDED DECEMBER 31, 1994
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
YANKEE ENERGY YANKEE GAS NORCONN
SYSTEM (Parent) SERVICES CO. PROPERTIES
__________________________________________
<S> <C> <C> <C>
Common Shares $ 51,438 $ 5 $ 1
Capital Surplus,
Paid In 87,155 80,781 1,100
Retained Earnings 19,478 62,434 61
Employee Stock Ownership
Plan Guarantee (1,800)
Capital Stock Expense (2,075)
__________________________________________
$154,196 $143,220 $1,162
__________________________________________
__________________________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
<PAGE>
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATING STATEMENTS OF
COMMON SHAREHOLDERS' EQUITY (a)
TWELVE MONTHS ENDED DECEMBER 31, 1994
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
YANKEE YANKEE
ENERGY ENERGY
HOUSATONIC FINCIAL SRVS PRODUCTION
CORPORATION COMPANY SRVCS, INC.
__________________________________________
<S> <C> <C> <C>
Common Shares $ 10 $ 1 $ 1
Capital Surplus,
Paid In 6,650
Retained Earnings 5,372 32 (134)
Employee Stock Ownership
Plan Guarantee
Capital Stock Expense
__________________________________________
$12,032 $33 $(133)
__________________________________________
__________________________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
<PAGE>
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATING STATEMENTS OF
COMMON SHAREHOLDERS' EQUITY (a)
TWELVE MONTHS ENDED DECEMBER 31, 1994
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
ELIMINATIONS CONSOLIDATED
___________________________
<S> <C> <C>
Common Shares $ 18 $ 51,438
Capital Surplus,
Paid In 88,531 87,155
Retained Earnings 67,765 19,478
Employee Stock Ownership
Plan Guarantee (1,800)
Capital Stock Expense (2,075)
__________________________
$156,314 $154,196
__________________________
__________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
<TABLE> <S> <C>
<ARTICLE> OPUR3
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1994
<PERIOD-START> JAN-01-1994
<PERIOD-END> DEC-31-1994
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 491,053
<TOTAL-OPERATING-REVENUES> 307,796
<NET-INCOME> 19,133
</TABLE>
