<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 CT OF 1935
YANKEE ENERGY SYSTEM, INC.
hereby files with the Securities and 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, 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 four
subsidiaries, NorConn, Yankee Financial, YESCo, and RMS. All
four non-utility subsidiaries are Connecticut corporations.
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. YESCo also has three wholly-owned
subsidiaries: BVA Cogen, Inc. (BVA), 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. YESCo Energy Consulting Services, Inc.,
incorporated in November 1996, provides energy planning and
consulting and fuel procurement management services to industrial
and commercial energy users. YESCo Industrial Energy Services,
Inc., acquired by YESCo in July 1996, provides heating,
ventilating and air-conditioning services and designs automated
temperature control systems for the commercial and industrial
market. 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 179,000 residential, commercial and industrial
users in Connecticut. Its service territory consists of 68
cities and towns, and covers approximately 1,995 square miles,
all in Connecticut.
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 2,760 miles of distribution mains, 130,751 service
lines, and 166,000 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 1996.
a. Number of Mcf of natural or manufactured gas
distributed at retail: 47,986,642.
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: None.
d. Number of Mcf of natural or manufactured gas purchased
outside the State of Connecticut, or at the Connecticut
state line: In 1996, Yankee Gas purchased 51,154,590
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 28th day
of February, 1997.
YANKEE ENERGY SYSTEM, INC.
By: s/Mary J. Healey
Mary J. Healey
Vice President, General Counsel and 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 and 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, 1996
<TABLE>
<CAPTION>
YANKEE ENERGY YANKEE GAS NORCONN
SYSTEM (Parent) SERVICES CO. PROPERTIES
__________________________________________
<S> <C> <C> <C>
Operating Revenues $335,564 $1,148
Less: Cost of Gas 186,528
__________________________________________
Revenues, Net of
Cost of Gas 149,036 1,148
__________________________________________
Other Operating Expenses:
Operations $ 419 55,889 134
Maintenance 6,524
Depreciation 6 16,239 255
Federal and State
Income Taxes (94) 15,100 (16)
Taxes Other Than
Income Taxes 21,959
__________________________________________
Total Other Operating
Expenses 331 115,711 373
__________________________________________
Operating Income (Loss) (331) 33,325 775
__________________________________________
Other Income, (Expense) Net:
Allowance for Other Funds
Used During Construction 101
Equity in Earnings of
Subsidiaries 20,608
Federal and State
Income Taxes (21) (105)
Other, Net 902 (388) (159)
__________________________________________
Other Income (Exp) Net 21,510 (308) (264)
__________________________________________
Income (Loss) Before
Interest Charges 21,179 33,017 511
__________________________________________
Interest Charges:
Interest on Long-
Term Debt 12,468 379
Other Interest 219 1,702 36
Allowance for Borrowed
Funds Used During
Construction (265)
__________________________________________
Interest Chrgs, Net 219 13,905 415
__________________________________________
Net Income (Loss) $20,960 $ 19,112 $ 96
__________________________________________
__________________________________________
</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, 1996
<TABLE>
<CAPTION>
YANKEE YANKEE
ENERGY ENERGY
HOUSATONIC FINANCIAL SERVICES,
CORPORATION SRVS CO. INC. CONSOL.
__________________________________________
<S> <C> <C> <C>
Operating Revenues $ 119 $1,739
Less: Cost of Gas
__________________________________________
Revenues, Net of
Cost of Gas 119 1,739
__________________________________________
Other Operating Expenses:
Operations 41 96 4,074
Maintenance
Depreciation 70 101
Federal and State
Income Taxes (11) (27)
Taxes Other Than
Income Taxes 40 145
__________________________________________
Total Other Operating
Expenses 81 155 4,293
__________________________________________
Operating Income (Loss) (81) (36) (2,554)
__________________________________________
Other Income, (Expense) Net:
Allowance for Other Funds
Used During Construction
Equity in Earnings of
Subsidiaries
Federal and State
Income Taxes (598) 1,084
Other, Net 3,931 309 191
__________________________________________
Other Income (Exp) Net 3,333 309 1,275
__________________________________________
Income (Loss) Before
Interest Charges 3,252 273 (1,279)
__________________________________________
Interest Charges:
Interest on Long-
Term Debt
Other Interest 58 232 563
Allowance for Borrowed
Funds Used During
Construction (87)
__________________________________________
Interest Chrgs, Net 58 232 476
__________________________________________
Net Income (Loss) $ 3,194 $ 41 ($1,755)
__________________________________________
__________________________________________
</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, 1996
<TABLE>
<CAPTION>
RM
SERVICES,
INC. ELIMINATIONS CONSOLIDATED
___________________________________________
<S> <C> <C> <C>
Operating Revenues $ 877 $ 2,023 $337,424
Less: Cost of Gas 186,528
___________________________________________
Revenues, Net of
Cost of Gas 877 2,023 150,896
___________________________________________
Other Operating Expenses:
Operations 853 2,023 59,483
Maintenance 67 6,591
Depreciation 31 16,702
Federal and State
Income Taxes 7 14,959
Taxes Other Than
Income Taxes 47 22,191
___________________________________________
Total Other Operating
Expenses 1,005 2,023 119,926
___________________________________________
Operating Income (Loss) (128) 0 30,970
___________________________________________
Other Income, (Expense) Net:
Allowance for Other Funds
Used During Construction 101
Equity in Earnings of
Subsidiaries 20,608 --
Federal and State
Income Taxes 57 417
Other, Net (1) 905 3,880
___________________________________________
Other Income (Exp) Net 56 21,513 4,398
___________________________________________
Income (Loss) Before
Interest Charges (72) 21,513 35,368
___________________________________________
Interest Charges:
Interest on Long-
Term Debt 12,847
Other Interest 8 905 1,913
Allowance for Borrowed
Funds Used During --
Construction (352)
___________________________________________
Interest Chrgs, Net 8 905 14,408
___________________________________________
Net Income (Loss) ($80) $20,608 $ 20,960
___________________________________________
___________________________________________
</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, 1996
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
YANKEE ENERGY YANKEE GAS NORCONN
SYSTEM (Parent) SERVICES CO. PROPERTIES
__________________________________________
<S> <C> <C> <C>
Utility Plant, at
Original Cost $504,577
Less: Accumulated Provision
for Depreciation 181,540
__________________________________________
323,037
Construction Work in Progress 14,164
__________________________________________
Total Net Utility Plant 337,201
__________________________________________
Other Property and Investments:
Other Property 19 174 6,943
Investments in Subsidiary
Companies, at Equity 156,484
Other Investments 188
__________________________________________
Total Other Property
and Investments 156,503 362 6,943
__________________________________________
Current Assets:
Cash 538 2,151
Accounts Receivable,
Net 16,707 42,337 97
Fuel Supplies 9,900
Other Material and Supplies 1,265
Recoverable Gas Costs 1
Accrued Utility Revenues 16,761
Current Portion Accumulated
Deferred Income Taxes (1)
Prepayments and Other 5,055
__________________________________________
Total Current Assets 17,245 77,469 97
__________________________________________
Unamortized Debit Expense 698 23
Deferred Gas Costs
and Other 23 14,865
Recoverable Pipeline
Transition Costs 422
Recoverable Environmental
Cleanup Costs 33,915
Recoverable Income Taxes 14,381
Recoverable Postretirement
Benefit Costs 1,827
__________________________________________
Total Assets $173,771 $481,140 $7,063
__________________________________________
__________________________________________
</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, 1996
(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 831 3,370
Investments in Subsidiary
Companies, at Equity
Other Investments 4,315
__________________________________________
Total Other Property
and Investments 0 831 7,685
__________________________________________
Current Assets:
Cash 187
Accounts Receivable,
Net 4,696 5,030 947
Fuel Supplies
Other Material and Supplies 457
Recoverable Gas Costs
Accrued Utility Revenues
Current Portion Accumulated
Deferred Income Taxes
Prepayments and Other 2 60
__________________________________________
Total Current Assets 4,696 5,032 1,651
__________________________________________
Unamortized Debit Expense
Deferred Gas Costs
and Other 2 421
Recoverable Pipeline
Transition Costs
Recoverable Environmental
Cleanup Costs
Recoverable Income Taxes
Recoverable Postretirement
Benefit Costs
__________________________________________
Total Assets $ 4,696 $5,865 $9,757
__________________________________________
__________________________________________
</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, 1996
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
RM
SERVICES
COMPANY ELIMINATIONS CONSOLIDATED
___________________________________________
<S> <C> <C> <C>
Utility Plant, at
Original Cost $504,577
Less: Accumulated Provision
for Depreciation 181,540
___________________________________________
323,037
Construction Work in Progress 14,164
___________________________________________
Total Net Utility Plant 337,201
___________________________________________
Other Property and Investments:
Other Property 94 11,431
Investments in Subsidiary
Companies, at Equity 156,484 ---
Other Investments 4,503
___________________________________________
Total Other Property
and Investments 94 156,484 15,934
___________________________________________
Current Assets:
Cash 1 2,877
Accounts Receivable,
Net 127 22,744 47,197
Fuel Supplies 9,900
Other Material and Supplies 1,722
Recoverable Gas Costs 1
Accrued Utility Revenues 16,761
Current Portion Accumulated
Deferred Income Taxes (1)
Prepayments and Other 5,117
___________________________________________
Total Current Assets 128 22,744 83,574
___________________________________________
Unamortized Debit Expense 721
Deferred Gas Costs
and Other (10) 15,301
Recoverable Pipeline
Transition Costs 422
Recoverable Environmental
Cleanup Costs 33,915
Recoverable Income Taxes 14,381
Recoverable Postretirement
Benefit Costs 1,827
___________________________________________
Total Assets $212 $179,228 $503,276
___________________________________________
___________________________________________
</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, 1996
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
YANKEE ENERGY YANKEE GAS NORCONN
SYSTEM (Parent) SERVICES CO. PROPERTIES
__________________________________________
<S> <C> <C> <C>
Capitalization:
Common Shareholders'
Equity $167,956 $151,598 $1,190
Long-Term Debt, Net of
Current Portion 600 102,532 5,750
__________________________________________
Total Capitalization 168,556 254,130 6,940
__________________________________________
Current Liabilities:
Notes Payable to
Associated Companies 6,000 (152)
Notes Payable to Banks 26,700
Long-Term Debt,
Current Portion 400 33,367 250
Accounts Payable 4,731 28,431 40
Accrued Taxes 84 1,257 45
Accrued Interest 3,589
Pipeline Transition Costs 422
Other Current Liabilities 7,885
__________________________________________
Total Current
Liabilities 5,215 107,651 183
__________________________________________
Accumulated Deferred
Income Taxes 51,827
Unfunded Deferred
Income Taxes 14,381 (60)
Accumulated Deferred Investment
Tax Credits 8,986
Reserve for Environmental
Cleanup Costs 35,000
Unfunded Postretirement
Benefits Costs 3,649
Other Deferred Credits 5,516
__________________________________________
Total Capitalization
and Liabilities $173,771 $481,140 $7,063
__________________________________________
__________________________________________
</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, 1996
(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 $ 27 $ 545 $3,073
Long-Term Debt, Net of
Current Portion
__________________________________________
Total Capitalization 27 545 3,073
__________________________________________
Current Liabilities:
Notes Payable to
Associated Companies (35) 4,380 6,331
Notes Payable to Banks
Long-Term Debt,
Current Portion
Accounts Payable 792 114 647
Accrued Taxes 3,912 11 (1,073)
Accrued Interest 3
Pipeline Transition Costs
Other Current Liabilities 1 343
__________________________________________
Total Current
Liabilities 4,669 4,506 6,251
__________________________________________
Accumulated Deferred
Income Taxes 9
Unfunded Deferred
Income Taxes (59) 12
Accumulated Deferred Investment
Tax Credits
Reserve for Environmental
Cleanup Costs
Unfunded Postretirement
Benefits Costs
Other Deferred Credits 873 412
__________________________________________
Total Capitalization
and Liabilities $ 4,696 $5,865 $9,757
__________________________________________
__________________________________________
</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, 1996
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
RM SERVICES
COMPANY ELIMINATIONS CONSOLIDATED
________________________________________
<S> <C> <C> <C>
Capitalization:
Common Shareholders'
Equity $ 51 $156,484 $167,956
Long-Term Debt, Net of
Current Portion 108,882
________________________________________
Total Capitalization 51 156,484 276,838
________________________________________
Current Liabilities:
Notes Payable to
Associated Companies 162 16,686 ---
Notes Payable to Banks 26,700
Long-Term Debt,
Current Portion 34,017
Accounts Payable 36 6,045 28,746
Accrued Taxes (43) 4,193
Accrued Interest 13 3,579
Pipeline Transition Costs 422
Other Current
Liabilities (1) 8,228
________________________________________
Total Current
Liabilities 154 22,744 105,885
________________________________________
Accumulated Deferred
Income Taxes 51,836
Unfunded Deferred
Income Taxes 7 14,281
Accumulated Deferred Investment
Tax Credits 8,986
Reserve for Environmental
Cleanup Costs 35,000
Unfunded Postretirement
Benefits Costs 3,649
Other Deferred Credits 6,801
___________________________________________
Total Capitalization
and Liabilities $212 $179,228 $503,276
___________________________________________
___________________________________________
</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, 1996
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
YANKEE ENERGY YANKEE GAS NORCONN
SYSTEM (Parent) SERVICES CO. PROPERTIES
__________________________________________
<S> <C> <C> <C>
Common Shares $ 52,248 $ 5 $ 1
Capital Surplus,
Paid In 90,106 80,780 1,100
Retained Earnings 28,754 70,814 89
Employee Stock Ownership
Plan Guarantee (1,000)
Capital Stock Expense (2,153)
__________________________________________
$167,955 $151,599 $1,190
__________________________________________
__________________________________________
</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, 1996
(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 400 5,747
Retained Earnings 17 144 (2,675)
Employee Stock Ownership
Plan Guarantee
Capital Stock Expense
__________________________________________
$ 27 $545 $3,073
__________________________________________
__________________________________________
</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, 1996
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
RM SERVICES
COMPANY ELIMINATIONS CONSOLIDATED
___________________________________________
<S> <C> <C>
Common Shares $ 1 $ 19 $ 52,248
Capital Surplus,
Paid In 149 88,176 90,106
Retained Earnings (99) 68,289 28,755
Employee Stock Ownership
Plan Guarantee (1,000)
Capital Stock Expense (2,153)
___________________________________________
$ 51 $156,484 $167,956
___________________________________________
___________________________________________
</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-30-1996
<PERIOD-END> DEC-31-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 503,276
<TOTAL-OPERATING-REVENUES> 337,424
<NET-INCOME> 20,960
</TABLE>
