<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM U-3A-2 FILE NO._____
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 five non-utility
subsidiaries, Housatonic Corporation ("Housatonic"), NorConn
Properties, Inc. ("NorConn"), Yankee Energy Financial Services
Company ("Yankee Financial"), Yankee Energy Services Company
("YESCO"), and R.M. Services, Inc. ("RMS"). 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 five
subsidiaries, Housatonic, NorConn, Yankee Financial, YESCO, and
RMS. All five non-utility subsidiaries are Connecticut
corporations. Housatonic is a single purpose corporation that
owns the Yankee Energy System's investment in the Iroquois Gas
Transmission System. NorConn was formed to hold non-utility
property interests that may be acquired by the Yankee Energy
System. Yankee Financial provides customers with financing for
natural gas installations. YESCO is a full service energy
company providing fuel management, project development, and
operations and maintenance services at selected customer sites.
BVA Cogen., Inc. (BVA), a wholly owned subsidiary of YESCO
acquired in 1995, is a cogeneration developer with projects in
operation in Northeastern United States. BVA is incorporated in
Delaware and is located in Massachusetts. RMS was formed in 1995
to provide debt collection service to utilities and other
businesses nationwide.
Yankee Energy and Yankee Gas are predominantly intrastate in
character.
2. Yankee Gas purchases, distributes and sells natural gas to
approximately 178,000 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 2,719 miles of distribution mains, 128,140 service
lines and 178,625 active meters for customer use, all located in
Connecticut. Yankee Gas also owns various propane facilities and
seven gas storage holders, all located in Connecticut. Yankee
Gas also contracts for storage capacity with other energy and
pipeline companies.
3. The following information is for the calendar year 1995.
a. Number of Mcf of natural or manufactured gas distributed
at retail: 46,121,662.
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: 463,614.
d. Number of Mcf of natural or manufactured gas purchased
outside the State of Connecticut, or at the Connecticut
state line: In 1995, Yankee Gas purchased 46,108,475 Mcf
of natural gas. All gas purchased is ultimately
delivered to Connecticut via interstate pipelines.
4. None.
Exhibit A
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.
Exhibit B
Attached as Exhibit B is a Financial Data Schedule which sets
forth 1. Total Assets, 2. Total Operating Revenues, and 3. Net
Income 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, 1996.
YANKEE ENERGY SYSTEM, INC.
By: s/Mary J. Healey
Mary J. Healey
Vice President, General Counsel & Secretary
SEAL
<PAGE>
ATTEST: s/Carolyn A. Joy
Name: Carolyn A. Joy
Title: Attorney
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, 1995
<TABLE>
<CAPTION>
YANKEE ENERGY YANKEE GAS NORCONN
SYSTEM (Parent) SERVICES CO. PROPERTIES
__________________________________________
<S> <C> <C> <C>
Operating Revenues $309,833 $1,001
Less: Cost of Gas 165,017
__________________________________________
Revenues, Net of
Cost of Gas 144,816 1,001
__________________________________________
Other Operating Expenses:
Operations $ 236 59,317 31
Maintenance 6,341
Depreciation 2 16,335 255
Federal and State
Income Taxes 12,167 (16)
Taxes Other Than
Income Taxes 21,943
__________________________________________
Total Other Operating
Expenses 238 116,103 270
__________________________________________
Operating Income (Loss) (238) 28,713 731
__________________________________________
Other Income, (Expense) Net:
Allowance for Other Funds
Used During Construction 89
Equity in Earnings of
Subsidiaries 14,998
Federal and State
Income Taxes 520 (79)
Other, Net 719 (144)
__________________________________________
Other Income (Exp) Net 15,717 465 (79)
__________________________________________
Income (Loss) Before
Interest Charges 15,479 29,178 652
__________________________________________
Interest Charges:
Interest on Long-
Term Debt 12,803 370
Other Interest 741 1,880 159
Allowance for Borrowed
Funds Used During
Construction (309)
__________________________________________
Interest Chrgs, Net 741 14,374 529
__________________________________________
Net Income (Loss) $14,738 $ 14,804 $ 123
__________________________________________
__________________________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATING STATEMENTS OF INCOME (a)
TWELVE MONTHS ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
YANKEE YANKEE
ENERGY ENERGY
HOUSATONIC FINANCIAL SERVICES,
CORPORATION SRVS CO. INC. CONSOL.
__________________________________________
<S> <C> <C> <C>
Operating Revenues $ 38
Less: Cost of Gas
__________________________________________
Revenues, Net of
Cost of Gas 38
__________________________________________
Other Operating Expenses:
Operations $ 55 $ 56 $ 810
Maintenance
Depreciation 28
Federal and State
Income Taxes (27) 62
Taxes Other Than
Income Taxes 141 69
__________________________________________
Total Other Operating
Expenses 196 29 969
__________________________________________
Operating Income (Loss) (196) (29) (931)
__________________________________________
Other Income, (Expense) Net:
Allowance for Other Funds
Used During Construction
Equity in Earnings of
Subsidiaries
Federal and State
Income Taxes (1,630) (33) 361
Other, Net 2,769 415 177
__________________________________________
Other Income (Exp) Net 1,139 382 538
__________________________________________
Income (Loss) Before
Interest Charges 943 353 (393)
__________________________________________
Interest Charges:
Interest on Long-
Term Debt 112
Other Interest 160 282 266
Allowance for Borrowed
Funds Used During
Construction
__________________________________________
Interest Chrgs, Net 272 282 266
__________________________________________
Net Income (Loss) $ 671 $ 71 ($659)
__________________________________________
__________________________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATED STATEMENTS OF INCOME (a)
TWELVE MONTHS ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
RM
SERVICES,
INC. ELIMINATIONS CONSOLIDATED
___________________________________________
<S> <C> <C> <C>
Operating Revenues $ 1,001 $309,871
Less: Cost of Gas 165,017
___________________________________________
Revenues, Net of
Cost of Gas 0 1,001 144,854
___________________________________________
Other Operating Expenses:
Operations 13 1,001 59,517
Maintenance 6,341
Depreciation 16,620
Federal and State
Income Taxes 12,186
Taxes Other Than
Income Taxes 22,153
___________________________________________
Total Other Operating
Expenses 13 1,001 116,817
___________________________________________
Operating Income (Loss) (13) 0 28,037
___________________________________________
Other Income, (Expense) Net:
Allowance for Other Funds
Used During Construction 89
Equity in Earnings of
Subsidiaries 14,998 --
Federal and State
Income Taxes (861)
Other, Net 719 3,217
___________________________________________
Other Income (Exp) Net 0 15,717 2,445
___________________________________________
Income (Loss) Before
Interest Charges (13) 15,717 30,482
___________________________________________
Interest Charges:
Interest on Long-
Term Debt 13,285
Other Interest 719 2,769
Allowance for Borrowed
Funds Used During
Construction (309)
___________________________________________
Interest Chrgs, Net 0 719 15,745
___________________________________________
Net Income (Loss) ($13) $14,998 $ 14,737
___________________________________________
___________________________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATING BALANCE SHEETS (a)
ASSETS
AT DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
YANKEE ENERGY YANKEE GAS NORCONN
SYSTEM (Parent) SERVICES CO. PROPERTIES
__________________________________________
<S> <C> <C> <C>
Utility Plant, at
Original Cost $494,334
Less: Accumulated Provision
for Depreciation 176,105
__________________________________________
318,229
Construction Work in Progress 7,568
__________________________________________
Total Net Utility Plant 325,797
__________________________________________
Other Property and Investments:
Other Property 25 174 7,197
Investments in Subsidiary
Companies, at Equity $160,828
Other Investments 188
__________________________________________
Total Other Property
and Investments 160,853 362 7,197
__________________________________________
Current Assets:
Cash 65 19 96
Accounts Receivable,
Net 12,647 44,102 83
Fuel Supplies 8,966
Other Material and Supplies 1,318
Recoverable Gas Costs 1,237
Accrued Utility Revenues 22,060
Current Portion Accumulated
Deferred Income Taxes (523)
Prepayments and Other 3,513
__________________________________________
Total Current Assets 12,712 80,692 179
__________________________________________
Unamortized Debit Expense 772 18
Deferred Gas Costs
and Other (69) 6,131
Recoverable Pipeline
Transition Costs
Recoverable Environmental
Cleanup Costs 38,331
Recoverable Income Taxes 25,328
Recoverable Postretirement
Benefit Costs 1,329
__________________________________________
Total Assets $173,496 $478,742 $7,394
__________________________________________
__________________________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATING BALANCE SHEETS (a)
ASSETS
AT DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
YANKEE YANKEE
ENERGY ENERGY
HOUSATONIC FINANCIAL SERVICES
CORPORATION SRVCS CO. COMPANY
__________________________________________
<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 26 244
Investments in Subsidiary
Companies, at Equity
Other Investments 19,312 3,011
__________________________________________
Total Other Property
and Investments 19,312 26 3,255
__________________________________________
Current Assets:
Cash 560 97 91
Accounts Receivable,
Net 3,948 59
Fuel Supplies
Other Material and Supplies 209
Recoverable Gas Costs
Accrued Utility Revenues
Current Portion Accumulated
Deferred Income Taxes
Prepayments and Other (12)
__________________________________________
Total Current Assets 560 4,045 371
__________________________________________
Unamortized Debit Expense
Deferred Gas Costs
and Other
Recoverable Pipeline
Transition Costs
Recoverable Environmental
Cleanup Costs
Recoverable Income Taxes (352) 12
Recoverable Postretirement
Benefit Costs
__________________________________________
Total Assets $19,520 $4,071 $3,614
__________________________________________
__________________________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATING BALANCE SHEETS (a)
ASSETS
AT DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
RM
SERVICES
COMPANY ELIMINATIONS CONSOLIDATED
___________________________________________
<S> <C> <C> <C>
Utility Plant, at
Original Cost $494,334
Less: Accumulated Provision
for Depreciation 176,105
___________________________________________
318,229
Construction Work in Progress 7,568
___________________________________________
Total Net Utility Plant 325,797
___________________________________________
Other Property and Investments:
Other Property 125 7,791
Investments in Subsidiary
Companies, at Equity 160,828 ---
Other Investments 22,511
___________________________________________
Total Other Property
and Investments 125 160,828 30,302
___________________________________________
Current Assets:
Cash 146 1,074
Accounts Receivable,
Net 12,630 48,209
Fuel Supplies 8,966
Other Material and Supplies 1,527
Recoverable Gas Costs 1,237
Accrued Utility Revenues 22,060
Current Portion Accumulated
Deferred Income Taxes (523)
Prepayments and Other 3,525
___________________________________________
Total Current Assets 146 12,630 86,075
___________________________________________
Unamortized Debit Expense 790
Deferred Gas Costs
and Other 6,062
Recoverable Pipeline
Transition Costs ---
Recoverable Environmental
Cleanup Costs 38,331
Recoverable Income Taxes 24,964
Recoverable Postretirement
Benefit Costs 1,329
___________________________________________
Total Assets $271 $173,458 $513,650
___________________________________________
___________________________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATING BALANCE SHEETS (a)
CAPITALIZATION AND LIABILITIES
AT DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
YANKEE ENERGY YANKEE GAS NORCONN
SYSTEM (Parent) SERVICES CO. PROPERTIES
__________________________________________
<S> <C> <C> <C>
Capitalization:
Common Shareholders'
Equity $159,350 $145,705 $1,191
Long-Term Debt, Net of
Current Portion 1,000 135,899 3,600
__________________________________________
Total Capitalization 160,350 281,604 4,791
__________________________________________
Current Liabilities:
Notes Payable to
Associated Companies 2,400
Notes Payable to Banks 12,400 32,800
Long-Term Debt,
Current Portion 400 3,367 150
Accounts Payable 121 23,656 33
Accrued Taxes 98 6,334 46
Accrued Interest 127 3,885 13
Refundable Energy Costs 343
Pipeline Transition Costs
Other Current Liabilities 6,000
__________________________________________
Total Current
Liabilities 13,146 76,385 2,642
__________________________________________
Accumulated Deferred
Income Taxes 38,525
Unfunded Deferred
Income Taxes 25,317 (39)
Accumulated Deferred Investment
Tax Credits 9,363
Reserve for Environmental
Cleanup Costs 35,000
Unfunded Postretirement
Benefits Costs 2,632
Other Deferred Credits 9,916
__________________________________________
Total Capitalization
and Liabilities $173,496 $478,742 $7,394
__________________________________________
__________________________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATING BALANCE SHEETS (a)
CAPITALIZATION AND LIABILITIES
AT DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
YANKEE YANKEE
ENERGY ENERGY
HOUSATONIC FINANCIAL SRVS. INC.
CORPORATION SRVS. CO. CONSOL
__________________________________________
<S> <C> <C> <C>
Capitalization:
Common Shareholders'
Equity $12,257 $ 104 $1,436
Long-Term Debt, Net of
Current Portion
__________________________________________
Total Capitalization 12,257 104 1,436
__________________________________________
Current Liabilities:
Notes Payable to
Associated Companies 3,450 3,900 2,300
Notes Payable to Banks 16
Long-Term Debt,
Current Portion 0
Accounts Payable 7 19 110
Accrued Taxes 1,310 27 (331)
Accrued Interest 37 48 27
Refundable Energy Costs
Pipeline Transition Costs
Other Current Liabilities 14
__________________________________________
Total Current
Liabilities 4,804 3,994 2,136
__________________________________________
Accumulated Deferred
Income Taxes 2,812
Unfunded Deferred
Income Taxes (353) (27) 42
Accumulated Deferred Investment
Tax Credits
Reserve for Environmental
Cleanup Costs
Unfunded Postretirement
Benefits Costs
Other Deferred Credits
__________________________________________
Total Capitalization
and Liabilities $19,520 $4,071 $3,614
__________________________________________
__________________________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATING BALANCE SHEETS (a)
CAPITALIZATION AND LIABILITIES
AT DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
RM SERVICES
COMPANY ELIMINATIONS CONSOLIDATED
________________________________________
<S> <C> <C> <C>
Capitalization:
Common Shareholders'
Equity $136 $160,829 $159,350
Long-Term Debt, Net of
Current Portion 140,499
________________________________________
Total Capitalization 136 160,829 299,849
________________________________________
Current Liabilities:
Notes Payable to
Associated Companies 12,050 ---
Notes Payable to Banks 45,216
Long-Term Debt,
Current Portion 3,917
Accounts Payable 135 456 23,625
Accrued Taxes 7,484
Accrued Interest 124 4,013
Refundable Energy Costs 343
Pipeline Transition Costs ---
Other Current Liabilities 6,014
________________________________________
Total Current
Liabilities 135 12,630 90,612
________________________________________
Accumulated Deferred
Income Taxes 41,337
Unfunded Deferred
Income Taxes 24,940
Accumulated Deferred Investment
Tax Credits 9,363
Reserve for Environmental
Cleanup Costs 35,000
Unfunded Postretirement
Benefits Costs 2,632
Other Deferred Credits 9,916
___________________________________________
Total Capitalization
and Liabilities $271 $173,459 $513,649
___________________________________________
___________________________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATING STATEMENTS OF
COMMON SHAREHOLDERS' EQUITY (a)
TWELVE MONTHS ENDED DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
YANKEE ENERGY YANKEE GAS NORCONN
SYSTEM (Parent) SERVICES CO. PROPERTIES
__________________________________________
<S> <C> <C> <C>
Common Shares $ 52,110 $ 5 $ 1
Capital Surplus,
Paid In 89,526 80,780 1,100
Retained Earnings 21,267 64,920 90
Employee Stock Ownership
Plan Guarantee (1,400)
Capital Stock Expense (2,153)
__________________________________________
$159,350 $145,705 $1,191
__________________________________________
__________________________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATING STATEMENTS OF
COMMON SHAREHOLDERS' EQUITY (a)
TWELVE MONTHS ENDED DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
YANKEE YANKEE
ENERGY ENERGY
HOUSATONIC FINANCIAL SRVCS,INC.
CORPORATION SRVS CO. CONSOL
__________________________________________
<S> <C> <C> <C>
Common Shares $ 10 $ 1 $ 1
Capital Surplus,
Paid In 6,650 2,316
Retained Earnings 5,597 103 (881)
Employee Stock Ownership
Plan Guarantee
Capital Stock Expense
__________________________________________
$12,257 $104 $1,436
__________________________________________
__________________________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES EXHIBIT A
CONSOLIDATING STATEMENTS OF
COMMON SHAREHOLDERS' EQUITY (a)
TWELVE MONTHS ENDED DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
RM SERVICES
COMPANY ELIMINATIONS CONSOLIDATED
___________________________________________
<S> <C> <C>
Common Shares $ 0 $ 18 $ 52,110
Capital Surplus,
Paid In 150 90,996 89,526
Retained Earnings (14) 69,815 21,267
Employee Stock Ownership
Plan Guarantee (1,400)
Capital Stock Expense (2,153)
___________________________________________
$136 $160,829 $159,350
___________________________________________
___________________________________________
</TABLE>
(a) Unaudited
NOTE: Individual columns may not add to Consolidated amount due
to rounding.
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR3
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 513,650
<TOTAL-OPERATING-REVENUES> 309,871
<NET-INCOME> 14,737
</TABLE>