Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1993 and Ending December 31, 1993
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF THE
EUA COGENEX CORPORATION
(Exact Name of Reporting Company)
A Subsidiary SERVICE COMPANY
("Mutual" or "Subsidiary")
Date of Incorporation September 26,1983.
If not Incorporated, Date of Organization .
State or Sovereign Power under which Incorporated or Organized Massachusetts
Location of Principal Executive Offices of Reporting Company:
Boott Mills South, 100 Foot of John Street, Lowell, Massachusetts 01852
Name, title and address of officer to whom correspondence
concerning this report should be addressed:
Richard M. Burns, Comptroller & Asst. Treas., 1 Liberty Sq., Boston, MA 02109
(Name) (Title) (Address)
Name of Principal Holding Company Whose Subsidiaries are served
by Reporting company:
Eastern Utilities Associates
SEC 1926 (6-82) TOTAL NUMBER OF PAGES - 72
INSTRUCTIONS FOR USE OF MODIFIED FORM U-13-60
1. Time of Filing - Annual Report essentially in the form of U-13-60 shall be
filed appended to Form U5S, Annual Report of the Parent and Associate
Companies Pursuant to the Public Utility Holding Company Act of 1935. Form
U5S is required to be filed by May 1.
2. Number of Copies - Each annual report shall be filed in duplicate. The
company should prepare and retain at least one extra copy for itself in case
correspondence with reference to the report becomes necessary.
3. Definitions - Definitions contained in Instruction 01-8 to the Uniform
System of Accounts for Mutual Service Companies and Subsidiary Service
Companies, Public Utility Holding Company Act of 1935, as amended February 2,
1979 shall be applicable to words or terms used specifically within this Form
U-13-60.
4. Organization Structure - The Company shall submit with each annual report a
copy of its current organizational chart.
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
SCHEDULE OR PAGE
ACCT. NO NO.
Description of Schedules and Accounts
COMPARATIVE BALANCE SHEET Schedule I 5-6
COMPANY PROPERTY Schedule II 7-16
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF COMPANY PROPERTY Schedule III 17
INVESTMENTS Schedule IV 18-19
ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES Schedule V 20
ACCOUNTS RECEIVABLE AGING Schedule VI 21
ACCUMULATED PROVISION FOR UNCOLLECTABLE ACCOUNTS Schedule VII 22
MISCELLANEOUS CURRENT AND ACCRUED ASSETS Schedule VIII 23
MISCELLANEOUS DEFERRED DEBITS Schedule IX 24
PROPRIETARY CAPITAL Schedule XI 25
LONG-TERM DEBT Schedule XII 26
CURRENT AND ACCRUED LIABILITIES Schedule XIII 27
NOTES TO FINANCIAL STATEMENTS Schedule XIV 28-45
COMPARATIVE INCOME STATEMENT Schedule XV 46
ANALYSIS OF BILLING - SALES & PROJECT REVENUES Accounts 514/417 47
ANALYSIS OF MISCELLANEOUS INCOME Accounts 419/421 48-49
SCHEDULE OF EXPENSE DISTRIBUTION Schedule XVII 50
DEPARTMENTAL ANALYSIS OF SALARIES Account 920 51
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
SCHEDULE OR PAGE
ACCT. NO NO.
Description of Schedules and Accounts
OUTSIDE SERVICES EMPLOYED Account 923 52-53
GENERAL ADVERTISING EXPENSES Account 930.1 54
MISCELLANEOUS GENERAL EXPENSES Account 930.2 55
RENTS Account 931 56
TAXES OTHER THAN INCOME Account 408 57
DONATIONS Account 426.1 58
OTHER DEDUCTIONS Account 426.5 59
NOTES TO STATEMENT OF INCOME Schedule XVIII 60
SCHEDULE OF TERMINATED CONTRACTS 61
SCHEDULE OF PROJECT VALUES 62-63
SCHEDULE OF ESTIMATED KILOWATTS SAVED 64
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Description of Reports or Statement
PROJECT INCOME STATEMENT 65-68
ORGANIZATIONAL STRUCTURE 69-71
SIGNATURE CLAUSE 72
ANNUAL REPORT OF EUA Cogenex Corporation
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the current and prior
year.
ACCOUNT ASSETS AND OTHER DEBITS AS OF DECEMBER 31, 1993
COMPANY PROPERTY CURRENT PRIOR
COMPANY PROPERTY
121 Company Property (Schedule II) 66,964,571 59,480,715
107 Construction work in progress
(Schedule II) 13,934,563 18,107,594
Total Property 80,899,134 77,588,309
108 Less accumulated provision for
depreciation and amortization of
company property (Schedule III) 17,515,853 17,073,593
Net Company Property 63,383,281 60,514,716
INVESTMENTS
123 Investments in associate companies
(Schedule IV) 63,388,495 51,979,854
124 Other Investments (Schedule IV) 35,385,595 19,455,386
Total Investments 98,774,090 71,435,240
CURRENT AND ACCRUED ASSETS
131 Cash 603,791 156,026
134 Special deposits 103,627 156,581
135 Working funds 11,250 10,750
136 Temporary cash investments (Schedule IV) -0- -0-
141 Notes receivable and lease receivable 7,587,418 1,202,121
143 Accounts receivable (Schedule VI) 14,512,193 12,034,494
144 Accumulated provision for uncollectible
accounts (Schedule VII) (316,986) (157,539)
146 Accounts receivable from associate
companies (Schedule V and VI) -0- 8,976
152 Fuel stock expenses undistributed -0- -0-
154 Materials and supplies 1,407,426 804,394
163 Stores expense undistributed -0- -0-
165 Prepayments 170,069 117,023
171 Interest receivable 546,021 484,614
174 Misc. current and accrued assets
(Schedule VIII) 47,369 31,335
Total Current and Accrued Assets 24,672,178 14,848,775
DEFERRED DEBITS
181 Unamortized debt expense 1,006,021 190,532
184 Clearing accounts -0- -0-
186 Miscellaneous deferred debits
(Schedule IX) 549,999 655,970
188 Research, development, or demonstration
expenditures (Schedule X) -0- -0-
Total Deferred Debits 1,556,020 846,502
TOTAL ASSETS AND OTHER DEBITS 188,385,569 147,645,233
ANNUAL REPORT OF EUA Cogenex Corporation
SCHEDULE I - COMPARATIVE BALANCE SHEET
ACCOUNT LIABILITIES & PROPRIETARY CAPITAL AS OF DECEMBER 31, 1993
CURRENT PRIOR
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI) 100 100
211 Miscellaneous paid-in-capital
(Schedule XI) 28,650,811 17,305,729
215 Appropriated retained earnings
(Schedule XI) -0- -0-
216 Unappropriated retained earnings
(Schedule XI) 10,619,440 7,083,584
Total Proprietary Capital 39,270,351 24,389,413
LONG-TERM DEBT
223 Advances from associate companies
(Schedule XII) -0- -0-
224 Other long-term debt (Schedule XII) 120,000,000 70,000,000
225 Unamortized premium on long-term debt -0- -0-
226 Unamortized discount on long-term debt-debt -0- -0-
Total Long-Term Debt 120,000,000 70,000,000
CURRENT AND ACCRUED LIABILITIES
231 Notes payable 7,820,000 42,688,000
232 Accounts payable 5,989,421 5,187,494
233 Notes payable to associate companies
(Schedule XIII) 8,059,000 -0-
234 Accounts payable to associate companies
(Schedule XIII) 776,847 174,056
236 Taxes accrued 992,029 949,510
237 Interest accrued 1,132,269 358,859
238 Dividends declared -0- -0-
241 Tax collections payable 83,253 11,035
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 292,367 467,940
Total Current and Accrued Liabilities 25,145,186 49,836,894
DEFERRED CREDITS
253 Other deferred credits 766,218 608,400
255 Accumulated deferred investment tax
credits -0- -0-
Total Deferred Credits 766,218 608,400
282 ACCUMULATED DEFERRED INCOME TAXES 3,203,814 2,810,526
TOTAL LIABILITIES &
PROPRIETARY CAPITAL 188,385,569 147,645,233
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
SCHEDULE II - COMPANY PROPERTY
DESCRIPTION BALANCE AT ADDITIONS RETIREMENTS OTHER 1/ BALANCE
BEGINNING OR SALES CHANGES AT CLOSE
OF YEAR OF YEAR
COMPANY PROPERTY
Account
121 LEASEHOLD (A)
IMPROVEMENTS 83,201 21,994 -0- (663) 104,532
(A)(B)
121 EQUIPMENT 2/ 41,917,279 18,362,265 (15,011,673) 384,859 45,652,730
121 OFFICE FURNITURE (A)
AND EQUIPMENT 1,162,157 450,740 -0- (10,540) 1,602,357
121 AUTOMOBILES, OTHER
VEHICLES AND RELATED (A)
GARAGE EQUIPMENT 658,091 191,994 (29,214) 171,369 992,240
301 ORGANIZATION 120,757 -0- -0- -0- 120,757
302&MISCELLANEOUS
303 INTANGIBLE (A)(B)
PLANT 15,539,230 384,340 (794,780) 2,536,522 17,665,312
304 LAND AND
LAND RIGHTS -0- -0- -0- -0- -0-
305 STRUCTURES AND (A)
IMPROVEMENTS -0- -0- -0- 826,643 826,643
310 AIRCRAFT AND AIRPORT
EQUIPMENT -0- -0- -0- -0- -0-
311 OTHER COMPANY
PROPERTY 3/ -0- -0- -0- -0- -0-
SUB-TOTAL 59,480,715 19,411,333 (15,835,667) 3,908,190 66,964,571
107 CONSTRUCTION
WORK IN (B)
PROGRESS 4/ 18,107,594 16,518,394 (19,052,503)(1,638,922) 13,934,563
TOTAL 77,588,309 35,929,727 (34,888,170) 2,269,268 80,899,134
SCHEDULE II - COMPANY PROPERTY - Continued
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL: (A)
Acquisition of EUA Day
(B) Transfers to other accounts
2/ SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE
COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT ADDITIONS
DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR:
SUBACCOUNT DESCRIPTION NET BALANCE
CHANGE AT CLOSE
OF YEAR
(1) Utility Load Reduction Programs 1,380,242 21,223,035
(2) Energy Management Programs 4,029,148 18,377,758
(3) Packaged Cogeneration (2,194,105) 5,212,730
(4) Energy Management Equipment 520,166
839,207
See Attachments A, B, C, D, E, F, G and H for detail of equipment
by project
TOTAL 3,735,451 45,652,730
3/ DESCRIBE OTHER COMPANY PROPERTY:
4/ DESCRIBE CONSTRUCTION WORK IN PROGRESS:
212 West Seneca Development Center 600,000
296 Bankers Trust Company 470,275
392 Columbia 1,022,366
466 Enersave 2,342,872
618 Potomoc Electric Power 282,976
672 Sheraton Washington 442,647
779 Enersave ConEd 1,468,683
780 Metropolitan Square 269,346
807 Eastman Kodak Co. 1,179,972
808 Sycom 1,296,902
853 Hungarian Energy Services Co. 115,899
869 Enersave Inc. 871,186
889 Golten Marine 122,926
902 Blount County Phase II 361,782
908 Lasalle Military Academy 126,744
914 Boston University Phase II Mechanical 133,718
107 Other projects under $100,000 1,322,638
unallocated costs - to be
allocated in 1994 1,503,631
13,934,563
SCHEDULE II - ATTACHMENT A
EQUIPMENT DETAILED BY PROJECT
Subaccount Description NET BALANCE
CHANGE AT CLOSE
OF YEAR
101 J.B. Thomas (2) (373,305) -0-
102 City of Lowell (2) 5,498 13,705
103 Worcester County Hospital (3) (52,554) 28,588
106 Winthrop Hospital (2) 8,247 8,247
108 City of Lawrence (2) -0- 381,522
109 Worcester County Court Hs. & Jail (3) (662,307) 42,608
117 Oak Island Nursing Home (2) 6,735 125,266
118 Sullivan County (2) -0- 301,402
123 City of Woonsocket (2) 132 46,372
127 Fogarty Memorial Hospital (3) (206,825) -0-
130 Jackson Brook Institute (2) -0- 280,899
140 Globe Manufacturing (3) (6,985) -0-
142 Hillsborough County (2) (61,346) -0-
144 Guardian Industries (1) (64,588) -0-
145 Paul Revere (Mass Elect)(1) -0- 112,746
146 Bella Vista (3) (593,826) -0-
152 T.J. Maxx (2) -0- 653,487
157 Skytop (2) -0- 81,201
159 Parkwest Hotel (2) 17,675 128,194
160 Savings Bank Life Insurance (1) -0- 67,006
164 10 N.E. Executive Park Trust (Boenco) (1) -0- 58,227
167 Hampshire Hills Sport Club (2) -0- 78,657
168 YMCA, Greenwich CT (3) (86,912) -0-
169 YMCA, Westport CT (3) (57,921) -0-
172 S.A.Y. (1) -0- 41,686
173 CoEnergy, Ltd. (3) (80,397) -0-
180 Meadowbrook East, Allentown PA (2) -0- 83,726
181 Cedar Crest College, Allentown PA (1) -0- 127,794
186 Lincoln Village (3) (488,501) -0-
195 Zayre (1) (34,667) -0-
212 West Seneca Development Ctr. (1) 2,502,198 2, 502,198
Sub-Total (229,649) 5, 163,531
SCHEDULE II - ATTACHMENT B
EQUIPMENT DETAILED BY PROJECT
Subaccount Description NET BALANCE
CHANGE AT CLOSE
OF YEAR
SUB-TOTAL FROM ATTACHMENT A (229,649) 5,163,531
216 Holiday Inn, Hyannis MA (2) -0- 91,116
223 Millhurst Mills (2) -0- 13,977
224 Flaghouse (2) -0- 16,000
228 Clark College (2) -0- 622,147
240 Worcester Company (3) 36,470 4,915,927
241 RCS/Com Electric (1) (405,000) -0-
245 Edison Estates (2) -0- 51,550
246 Raratan Valley Community College (2) -0- 375,181
247 Lebanon Valley College (2) -0- 270,010
253 RCS, Com Electric Group II (1) (343,474) -0-
259 National Office Supply (2) -0- 11,000
262 RCS/Group III (1) (471,200) -0-
265 AT&T, Rochelle Park, NJ (2) -0- 35,690
266 Automatic Machine (1) -0- 13,319
269 RCS/Group IV (1) (1,734,334) -0-
276 Tara Hyannis Hotel & Resort (1) (164,990) -0-
290 Dedham Holiday Inn (1) 866 95,056
292 Somerset Vocational School (2) -0- 149,724
295 Carney Hospital (1) -0- 40,297
296 Bankers Trust (1) (327,098) -0-
299 Kaufman Carpet (2) (225,685) -0-
300 Star Market (1) (67,698) -0-
301 Zayre/Ames (1) (49,933) -0-
303 Intermediate School (2) -0- 63,950
304 Dwight Englewood (2) -0- 40,914
305 Rowes (Beacon)(1) -0- 301,827
307 Schraft's (1) -0- 315,191
Sub-Total (3,981,725) 12,586,407
SCHEDULE II - ATTACHMENT C
EQUIPMENT DETAILED BY PROJECT
Subaccount Description NET BALANCE
CHANGE AT CLOSE
OF YEAR
SUB-TOTAL FROM ATTACHMENT B (3,981,725) 12,586,407
314 Maidenform (2) (158,098) -0-
326 Purity Cambridge (1) (32,266) -0-
327 Purity Marshfield (1) (89,608) -0-
328 Purity Kingston (1) (70,409) -0-
329 Purity Manomet (1) (66,154) -0-
340 Star Market #108 (1) 18,364 18,364
341 Star Market #138 (1) (29,992) 29,992
342 Star Market #102 (1) (29,305) 29,305
343 Star Market #112 (1) (24,382) 24,382
344 Nordstrom (2) (28,800) -0-
347 Tillotson-Pearson (2) (60,600) -0-
348 Nordstrom Santa A (2) (51,200) -0-
350 Methuen H.S. (1) (75,266) -0-
359 Guest Quarters-Waltham (1) (65,681) 232,869
360 Kappy's Liquor (1) (13,370) -0-
364 Prince George (2) -0- 963,751
378 Luzo Foods (1) (90,995) -0-
382 Medical College (2) 144,868 1,379,356
383 Harvard School (2) -0- 587,186
385 Robertwood Johnson University
Hospital (2) 7,877 693,834
386 Warren Hospital -0- 224,857
387 Camden City Mun. (2) -0- 527,956
388 E. Penn Psych. (2) -0- 135,529
390 Bucks City College (2) -0- 236,984
391 Winterthur Museum (2) -0- 123,600
393 Hackensack Medical Center (2) 241 436,950
394 Keystone Jr. College (2) -0- 226,210
396 Altus Group (2) -0- 230,122
398 Star Market #118 (1) (21,152) 21,152
399 Star Market #136 (1) (26,883) 26,883
400 Star Market #141 (1) (27,698) 27,698
401 Star Market #120 (1) (20,112) 20,112
405 First Church (1) -0- 127,200
406 Guest Quarters (1) -0- 150,904
407 Star Market #119 (1) (23,852) 23,852
408 Star Market #106 (1) (28,896) 28,896
SUB-TOTAL (4,314,869) 19,114,351
SCHEDULE II - ATTACHMENT D
EQUIPMENT DETAILED BY PROJECT
Subaccount Description NET BALANCE
CHANGE AT CLOSE
OF YEAR
SUB-TOTAL FROM ATTACHMENT C (4,314,869) 19,114,351
411 USMCAS - Phase 2 (1) (299,716) -0-
435 Alpha Industries (1) -0-
285,229 447
Cambridge Friends (1) (16,440) -0-
448 T.J. Maxx #372 (1) (25,490) -0-
449 Lee Jay #28 (1) (9,757) -0-
453 USMCAS - Phase 3 (2) (155,807) -0-
455 Trammel Crow Company (1) (5,753) -0-
458 Somerville Lumber, Somerville (1) 296 -0-
460 Hotel Meridien (1) -0- 18,417
468 Sheraton Tara (1) -0- 105,932
470 Esco Caribbean, Inc. (1) -0- 33,989
471 Finkelstein Memorial Library (1) 240 65,394
472 Ford Products (1) -0- 82,055
473 Swank, Inc. (2) (80,949) -0-
478 Murray School House Plaza (2) -0- 31,208
479 Murray Construction (2) -0- 15,954
480 Becton Dickenson (2) -0- 77,213
481 Mountain Lake Tennis Club (2) -0- 25,259
482 Fairlawn Lakes Tennis Club (2) (24,654) -0-
483 National Office Supply (2) (39,062) -0-
484 Borough of Freehold (2) -0- 86,730
485 Interfaith Medical Center (1) (479,360) -0-
487 Lafayette Mills (2) -0- 40,775
488 Taylor Mills (2) -0- 46,310
489 Milford Brook (2) -0- 89,404
SUB-TOTAL (5,451,321) 20,118,220
SCHEDULE II - ATTACHMENT E
EQUIPMENT DETAILED BY PROJECT
Subaccount Description NET BALANCE
CHANGE AT CLOSE
OF YEAR
SUB-TOTAL FROM ATTACHMENT D (5,451,321) 20 ,118,220
490 Pine Brook (2) -0- 73,581
491 Clark Mills School (2) -0- 52,324
492 Franklin Lakes (2) -0- 22,485
493 Racquetball & Nautilus Center (2) (12,910) -0-
494 Green Township School District (2) -0- 39,708
495 West Morris YMCA (2) -0- 9,925
496 Park Shore Manor Health Care (2) -0- 65,929
499 New Brighton Manor & Care Center (2) (43,739) -0-
501 Coburn Corp. (2) (4,577) -0-
502 Club at Woodbridge (2) -0- 55,801
503 Kaufman Carpet - Headquarters (2) (12,907) -0-
505 Werner Erhard & Associates (2) -0- 135,000
506 Beres Industries (2) -0- 30,809
507 Plymouth Lampton (2) -0- 13,856
508 Paper Mart, Inc. (2) -0- 76,648
510 Daughters of Jacob Nursing Home (2) (123,825) -0-
511 Pavillion Towers (2) -0- 25,000
513 Brooklyn Law School (2) (39,393) -0-
523 Polaroid Corporation (1) -0- 166,005
540 Bluebeard's Castle Hotel (2) -0- 71,740
541 The Buckley School (1) -0- 54,535
542 The Italian Center (1) -0- 14,938
544 Rockville Nursing Home (1) (25,067) -0-
545 Seymour Specialty Wire Company (1) -0- 35,490
546 Theis Precision Steel Corporation (1) -0- 144,189
549 Abbey Manor Convalescent Home (1) -0- 8,780
550 American Graphics, Inc. -0- 9,985
551 Bucklin, Colrain, Shelburne Reg. School (1) -0- 12,142
552 Buckley Convalescent Home (1) -0- 11,050
553 Country Curtains (1) -0- 16,422
554 Diesel Dans, Inc. (1) -0- 7,886
555 Gersten Enterprises (1) -0- 4,646
556 Hillcrest Hospital (1) -0- 42,585
557 J.E. Smith & Company, Inc. (1) -0- 8,013
558 Kanthal Corporation (1) -0- 22,907
559 Plainville Wayside Furniture Co. (1) (12,683) -0-
SUB-TOTAL (5,726,422) 21 ,350,599
SCHEDULE II - ATTACHMENT F
EQUIPMENT DETAILED BY PROJECT
Subaccount Description NET BALANCE
CHANGE AT CLOSE
OF YEAR
SUB-TOTAL FROM ATTACHMENT E (5,726,422) 21,350,599
560 Royal Pavillion Condominiums (1) (25,452) -0-
561 Waterford Country School, Inc. (1) -0- 10,916
567 Davenport Realty Trust (1) -0- 278
570 Pepsi-Cola Metropolitan Bottling Co. (1) 1,824 655,132
583 Lahey Clinic (1) 8,463 190,614
584 Orange County Community College (1) 188,875 748,214
593 Beall-Ladymon Corp. (2) -0- 35,015
595 Oak Nursing Home (1) -0- 51,472
605 Public Service of Colorado (2) (11) 10,845
608 Town of Clarkstown (1) 440 118,915
611 Boston University Phase I 772,530 772,530
612 Watt Management Company (2) -0- 365,044
621 Albertus Magnus High School (1) 430 116,188
634 Savings Oil Company, Inc. (2) -0- 35,771
635 Shelter Bay Company (2) -0- 13,019
636 Canaan Market (1) -0- 648
638 Scandals Hair Design, Inc. (2) -0- 6,340
639 Petco Animal Supplies, Inc. (2) -0- 4,841
640 USMC Phase 4 (2) (64,741) -0-
642 Portsmouth Virginia Schools (2) (1,850) -0-
643 Instron Corporation (1) 36,010 36,010
645 Toshiba America (2) 48 94,365
648 Country Grocer (1) -0- 14,837
649 Dupont & Tobin (1) -0- 8,825
651 Nejaime's Store (1) -0- 8,574
652 Springfield Olympia (1) -0- 23,347
653 Stadium Systems (1) -0- 17,770
655 DOE Bldg - Lighting Upgrade 800,370 800,370
656 Cliff Colbert Chevrolet - Oldsmobile, Inc. (2) -0- 19,617
659 Simon's Rock of Bard College (1) -0- 73,724
660 Town of Greenfield (1) -0- 22,804
661 Moldmaster Engineering, Inc. (1) -0- 18,716
662 Chapel Bridge Park (1) -0- 311,535
670 U.S. Post Office, Stm. Inc. (1) (1,394,743) 10,866
SUB-TOTAL (5,404,229) 25,947,741
SCHEDULE II - ATTACHMENT G
EQUIPMENT DETAILED BY PROJECT
Subaccount Description NET BALANCE
CHANGE AT CLOSE
OF YEAR
SUB-TOTAL FROM ATTACHMENT F (5,404,229) 25,947,741
673 Bel Air Markets (2) 30 36,896
676 Dominican Convent (1) 2,689 173,305
677 Central Berkshire School District (1) -0- 133,762
680 Closter Board of Education (1) 4,729 119,364
681 New Lebanon Central School Dist. (1) 238 63,681
682 Cavellero Plastics, Inc. (1) -0- 15,206
684 North Rockland Central School Dist. (1) 17,202 1,007,809
687 Vanier Graphics (2) 42 33,091
693 Auburn Journal (2) 28 26,511
696 MEM Company (1) 2,444 223,751
699 Brook & Mack, Inc. (2) (27,987) -0-
700 Palm Beach Gardens (2) 209,121 218,284
707 60 Craig Road Investors (1) 185 48,333
708 Materials Research Corporation (1) 589 152,788
752 Henry Mayo hospital (2) 195 151,957
753 Hillhaven Corp d/b/a Franklin House (2) 13,250 13,250
757 Nordstroms - Dan Diego (2) -0- 38,609
758 Shisheido America, Inc. (1) 406 72,972
759 Chester Union Free School District (1) 9,095 166,435
762 USA Dept. Navy (2) 1,378 948,905
763 Com/Elec - All Projects (1) 54,482 5,815,525
764 Mt. Vernon Hospital (1) 61,986 132,750
776 Village Green Nursing Home (2) -0- 24,984
777 Barnert Hospital 180,191 180,191
781 Sandoval County (2) -0- 31,602
783 1560 Broadway (1) 318,163 318,163
784 Northshore Medical & Dental Center (2) -0- 40,929
789 Hebrew Academy (2) -0- 123,896
795 One Wells Avenue Associates (1) 149,273 149,273
798 Kurt Saracen (1) (26) (26)
800 Roseway St. Realty (1) -0- 60,774
803 Berlin School District (2) 68,341 77,378
804 Arthur Blank & Co., Inc. (1) (17) (17)
806 Nanuet Public Schools (1) 28,689 251,797
811 Hornick (1) 20,209 175,315
812 United Nations International School (1) 35,521 35,521
819 Metro Park Associates, L.P. (2) 69,524 69,524
833 Kentucky Fried Chicken (2) 3,264 60,898
834 Washboard Laundries (2) -0- 56,156
843 Nihonmachi Terrace (3) 5,653 225,613
Sub-Total (4,175,342) 37,422,896
SCHEDULE II - ATTACHMENT H
EQUIPMENT DETAILED BY PROJECT
Subaccount Description NET BALANCE
CHANGE AT CLOSE
OF YEAR
SUB-TOTAL FROM ATTACHMENT G (4,175,342) 37,422,896
850 Churchill Crossing (2) 79,594 79,594
854 400 Atlantic Avenue (2) 92,035 92,035
855 Inglewood Civic Plaza - 101 N. LaBrea (2) 60,050 60,050
856 Inglewood LaBrea Associates -
111 N. LaBrea (2) 114,232 114,232
857 Arsenal Mall/Watertown Arsenal
Associates (2) 40,053 40,053
858 Greendale Mall/New England Development (2) 248,759 248,759
859 VA Hospital-Dept. of Veteran Affairs (2) (39,340) (39,340)
861 Fort McPherson/Fort Gillen (2) 1,601,625 1,601,625
862 Mobile Airport Authority (2) 172,909 172,909
868 UPS 500,686 500,686
870 Whitehall (Cape Island) NH (2) 14,870 14,870
874 Grand Tokyo USA, Inc. (2) 84,106 84,106
879 Star Market #110 (1) 19,360 19,360
880 Star Market #126 (1) 29,361 29,361
881 Star Market #113 (1) 23,950 23,950
885 Revere High School (2) 733 733
891 400 Elmwood Associates (2) 152,001 152,001
894 HTI - Bayshore Medical Center (2) 14,020 14,020
901 Blount I - Board of Education (2) (38) (38)
911 Southmore Medical Center (2) 46 46
915 Briarwood One Limited Partnership (2) 146,232 146,232
922 Barry University (2) 1,268,948 1,268,948
940 Feenan financial Group (2) 12,897 12,897
947 HTI - Detar Hospital (2) 45 45
EUA Nova 39,881 358,922
EUA Day 480,285 480,285
Con Edison (1) 1,753,170 1,753,170
CES Way (2) 1,000,323 1,000,323
Sub-Total 7,390,627 7,390,627
TOTAL 3,735,451 45,652,730
(1) Utility Load Reduction Programs
(2) Energy Management Program
(3) Packaged Cogeneration
(4) Energy Management Equipment
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF COMPANY PROPERTY
DESCRIPTION BALANCE ADDITIONS RETIRE- OTHER BALANCE
AT CHARGED MENT CHANGES AT CLOSE
BEGINNING TO ADD 1/ OF YEAR
OF YEAR ACCTS 403, (DEDUCT) 405 & 417
ACCOUNTS
111 ORGANIZATION 120,579 179 -0- -0- 120,758
111 MISCELLANEOUS (B)
INTANGIBLE PLANT 1,228,623 1,244,231 133,864 19,280 2,358,270
122 LEASEHOLD (A)
IMPROVEMENTS 11,987 12,750 -0- (264) 24,473
(A)(B)
122 EQUIPMENT 14,867,830 4,987,747 6,542,499 334,932 13,648,010
122 OFFICE FURNITURE (A)
AND FIXTURES 551,551 232,126 -0- (8,321) 775,356
122 AUTOMOBILES, OTHER
VEHICLES AND RELATED (A)(B)
GARAGE EQUIPMENT 293,023 68,319 13,749 180,433 528,026
304 LAND AND LAND RIGHTS -0- -0- -0- -0- -0-
305 STRUCTURES AND (A)
IMPROVEMENTS -0- -0- -0- 60,960 60,960
310 AIRCRAFT AND AIRPORT
EQUIPMENT -0- -0- -0- -0- -0-
311 OTHER COMPANY
PROPERTY -0- -0- -0- -0- -0-
17,073,593 6,545,352 6,690,112 587,020 17,515,853
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
(A) Acquisition of EUA Day
(B) Transfers to other accounts
ANNUAL REPORT OF EUA Cogenex Corporation
For the Year Ended December 31, 1993
SCHEDULE IV - INVESTMENTS
INSTRUCTIONS: Complete the following schedule concerning investments.
Under Account 124 "Other Investments", state each investment separately,
with description, including the name of issuing company, number of shares
or principal amount, etc.
DESCRIPTION BALANCE AT BALANCE AT
BEGINNING OF CLOSE OF
YEAR YEAR
ACCOUNT 123 - INVESTMENT IN SUBSIDIARY COMPANIES
Investments in Subsidiary Companies
Micro Utility, L.P. 4,232,128 3,610,051
EUA/Highland Energy Group 373,418 2,015,151
EUA Onsite 18,718,233 21,441,388
EUA/FRCII Energy Associates 17,348,737 16,417,613
EUA/ICC Partners, L.P. 102,621 126,077
Energy Capital & Services I & II 11,204,717 19,778,215
Total Equity Investments 51,979,854 63,388,495
ACCOUNT 124 - OTHER INVESTMENTS
Notes Receivable
Greater Lawrence Sanitation 136,186 47,951
Interstate Lanes 17,320
7,197
Sycom Enterprises 2,146,378 3,408,671
Columbia University -0- 6,016,321
MA Institute of Technology Phase II -0- 2,984,550
Interfaith Medical - Large -0- 1,129,000
IES - State of Connecticut -0- 40,000
Boston University Phase II -0- 805,590
Eastman Kodak -0- 3,161,734
Sycom - Pepco -0- 159,040
Veterans Association Hospital -0- 4,293,571
Jewish Federation Council -0- 55,790
Sunbelt Regional Medical -0- 113,155
Blount County Phase I -0- 611,065
Valley Regional Medical Center -0- 77,000
Boston Edison DSM Notes 9,904,000 10,896,538
Detar Hospital -0- 61,498
Total Notes Receivable 12,203,884 33,868,671
ANNUAL REPORT OF EUA Cogenex Corporation
For the Year Ended December 31, 1993
SCHEDULE IV - INVESTMENTS (Continued)
INSTRUCTIONS: Complete the following schedule concerning investments.
Under Account 124 "Other Investments", state each investment separately,
with description, including the name of issuing company, number of
shares or principal amount, etc.
DESCRIPTION BALANCE AT BALANCE AT
BEGINNING OF CLOSE OF
YEAR YEAR
ACCOUNT 124 - OTHER INVESTMENTS
Long Term Lease Receivable
Miscellaneous (3,791) -0-
MA Institute of Technology Phase I & II 2,026,667 -0-
Modicon 58,411 8,165
Columbia University 4,235,571 -0-
Boston University Phase II 1,018,706 -0-
Broadway Trade Center -0- 78,135
Portsmouth City Schools 84,062 677,181
White Memorial Medical Center -0- 403,611
Diagnostic Center Hospital -0- 87,737
Bayshore Medical Center -0- 124,518
Brownwood Regional Hospital -0- 137,577
Total Long Term Lease Receivable 7,251,502 1,516,924
TOTAL INVESTMENTS 71,435,240 98,774,090
ANNUAL REPORT OF EUA Cogenex Corporation
For the Year Ended December 31, 1993
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable.
DESCRIPTION BALANCE AT BALANCE AT
BEGINNING OF CLOSE OF
YEAR YEAR
ACCOUNT 146 - ACCOUNTS RECEIVABLE
Eastern Utilities Associates 1,561 -0-
EUA Service Corporation 3,798 -0-
Eastern Edison Company 3,617 -0-
TOTAL 8,976 -0-
ANNUAL REPORT OF EUA Cogenex Corporation
For the Year Ended December 31, 1993
SCHEDULE VI - ACCOUNTS RECEIVABLE AGING
INSTRUCTIONS: Complete the following schedule concerning the aging of
accounts receivable for Account 143 - Accounts
Receivable and Account 146 -
Accounts Receivable from Associated companies
DESCRIPTION BALANCE AT BALANCE AT
BEGINNING OF CLOSE OF
YEAR YEAR
Account 143 - Accounts Receivable
0 - 30 Days 6,627,183 6,879,302
31 - 60 Days 1,168,961 2,393,360
62 - 90 Days 1,087,965 1,514,369
91 - over 3,150,385 3,725,162
Total 12,034,494 14,512,193
Account 146 - Accounts Receivable
from associated companies
0 - 30 Days 8,976 -0-
Total 8,976 -0-
ANNUAL REPORT OF EUA Cogenex Corporation
For the Year Ended December 31, 1993
SCHEDULE VII ACCUMULATED PROVISION FOR UNCOLLECTABLE ACCOUNTS
INSTRUCTIONS: Complete the following analysis of accumulated provision for
uncollectible accounts receivable.
CURRENT YEAR
DESCRIPTION BALANCE AT PROVISIONS WRITE-OFF BALANCE AT
BEGINNING OF CLOSE OF
YEAR
YEAR
Account 144
Provision for
uncollectible account 157,539 217,818 (58,371) 3 16,986
TOTAL 157,539 217,818 (58,371) 3 16,986
ANNUAL REPORT OF EUA Cogenex Corporation
For the Year Ended December 31, 1993
SCHEDULE VIII
MISCELLANEOUS CURRENT AND ACCRUED ASSETS
INSTRUCTIONS: Provide detail of items in this account. Items less than
$10,000 may be grouped, showing the number of items in each group.
DESCRIPTION BALANCE AT BALANCE AT
BEGINNING OF CLOSE OF
YEAR YEAR
ACCOUNT 174 - MISCELLANEOUS
CURRENT AND ACCRUED ASSETS
Executive Life Insurance 31,335 47,369
TOTAL 31,335 47,369
ANNUAL REPORT OF EUA Cogenex Corporation
For the Year Ended December 31, 1993
SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS
INSTRUCTIONS: Provide a detail of items in this account. Items less than
$10,000 may be grouped by class showing the number of items in each class.
DESCRIPTION BALANCE AT BALANCE AT
BEGINNING OF CLOSE OF
YEAR YEAR
ACCOUNT 186 -
MISCELLANEOUS DEFERRED DEBITS
Dupont Merck 183,432 -0-
Emerson Hospital 23,888 -0-
Strathmore Paper (Marathon/EUA) 107,309 -0-
AT&T Information & Network Systems 28,581 -0-
Unearned Compensation 10,000 -0-
EUA/Beacon 3,720 51,220
Sycom 44,763 44,906
50/50 SEC Ruling 85,349 81,575
State of RI Sales Tax Audit 13,242 -0-
Landis & Gyr - MCC Powers Overpayment Recog. 22,414 -0-
EUA Onsite Acquisition 127,269 132,627
Foley, Hoag & Eliot 6,003
-0-
EUA Day - Costs in Excess of Billing -0- 132,077
EUA/Electricity Supply Board -0- 60,538
Canada - MWE Legal Fees -0- 13,851
Measuring & Monitoring Advance -0- 10,778
Miscellaneous (12) -0- 22,427
TOTAL 655,970 549,999
ANNUAL REPORT OF EUA Cogenex Corporation
For the Year Ended December 31, 1993
SCHEDULE XI - PROPRIETARY CAPITAL
ACCOUNT CLASS OF NUMBER OF PAR OR STATED OUTSTANDING CLOSE OF PERIOD
NUMBER STOCK SHARES VALUE PER
AUTHORIZED SHARE NO. OF SHARES TOTAL AMOUNT
201 COMMON STOCK 1,000 $0.10 1,000 $100.00
ISSUED
INSTRUCTIONS: Classify amounts in each account with brief explanation,
disclosing the general nature of transactions which give rise to the reported
amounts.
DESCRIPTION AMOUNT
ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL 28,650,8 11
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS -0-
(1) See Schedule XIV Notes to Financial Statements, Page 28
TOTAL 28,650,8 11
INSTRUCTIONS: Give particulars concerning net income or (loss) during
the year, distinguishing between compensation for the use of capital owed
or net loss remaining from servicing non-associate per the General
Instructions of the Uniform System of Accounts. For dividends paid during
the year in cash or otherwise, provide rate percentage, amount of di vidend,
date declared and date paid.
DESCRIPTION BALANCE AT NET INCOME DIVIDENDS BALANCE
BEGINNING OR PAID CLOSE
OF YEAR (LOSS) OF YEAR
ACCOUNT 216 -
UNAPPROPRIATED
RETAINED EARNINGS 7,083,584 3,535,856 -0- 10,619,440
TOTAL 7,083,584 3,535,856 -0- 10,619,440
Annual Report of EUA Cogenex Corporation
For the Year Ended December 31, 1993
SCHEDULE XII - LONG-TERM DEBT
INSTRUCTIONS: Advances from associate companies should be reported separately
for advances on notes, and advances on open account. Names of associate
companies from which advances were received shall be shown under the class and
series of obligation column. For Account 224 - Other long-term debt provide
the name of creditor company or organization, terms of obligation, date of
maturity, interest rate, and the amount authorized and outstanding.
<TABLE>
NAME OF TERMS OF OBLIG DATE OF INT. AMOUNT BALANCE ADDITION 1/ BALANCE
CREDITOR CLASS & SERIES MATURITY RATE AMORT- AT DEDUC- AT CLOSE
OF OBLIGATION IZED BEGINNING TION OF YEAR
OF YEAR
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ACCOUNT 223 -
ADVANCES FROM
PARENT AND
ASSOCIATE
COMPANIES
ACCOUNT 224 Unsecured Notes 09/03/97 7.22% 15,000,000 15,000,000 -0- -0- 15,000,000
OTHER LONG to Prudential
TERM DEBT: Ins. Co. of
America & PRUCO
Life Ins. Co.
Unsecured Notes 10/30/01 9.6% 20,000,000 20,000,000 -0- -0- 20,000,000
to Prudential
Ins. Co. of
America & PRUCO
Life Ins. Co.
Unsecured Notes 06/30/05 10.56% 35,000,000 35,000,000 -0- -0- 35,000,000
to Prudential
Ins. Co. of
America
Unsecured Notes 09/15/00 7.0% 50,000,000 -0- 50,000,000 -0- 50,000,000
to qualified
institutional buyers
under Rule 144A
of the 1993 Act
TOTAL 120,000,000 70,000,000 50,000,000 -0-120,000,000
</TABLE>
1/ GIVE AN EXPLANATION OF DEDUCTIONS:
ANNUAL REPORT OF EUA Cogenex Corporation
For the Year Ended December 31, 1993
SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES
INSTRUCTIONS: Provide balance of notes and accounts payable to each
associate company. Give description and amount of miscellaneous current and
accrued liabilities. Items less than $10,000 may be grouped, showing the
number of items in each group.
DESCRIPTION BALANCE AT BALANCE AT
BEGINNING OF CLOSE OF
YEAR YEAR
ACCOUNT 233 - NOTES PAYABLE TO
ASSOCIATE COMPANIES
Eastern Utilities Associates -0- 8,059,000
TOTAL -0- 8,059,000
ACCOUNT 234 - ACCOUNTS PAYABLE TO
ASSOCIATE COMPANIES
Eastern Utilities Associates 17,274 26,981
EUA Service Corporation 154,344 746,743
Eastern Edison Company 1,032 1,717
Newport Electric Corporation 1,406
1,406
TOTAL 174,056 776,847
ACCOUNT 242 - MISCELLANEOUS CURRENT
AND ACCRUED LIABILITIES
Commitment Fee 18,750 7,928
Pension Liability 341,996 42,236
Retainage Liability 6,902 129,466
Acquisition of N.E. Sun Control 90,292 -0-
Restricted Stock Plan 10,000 10,000
EUA Nova -0- (200,000)
Lease Obligations - AT&T -0- 13,980
401K Savings -0- 149,017
Accrued Payroll -0- 40,062
Billing in excess of cost -0- 75,038
Miscellaneous (6) -0- 24,640
TOTAL 467,940 292,367
EUA Cogenex Corporation
Notes To Consolidated Financial Statements
For The Years December 31, 1993 and 1992
A. General
EUA Cogenex Corporation (the Company) is an energy services company which
designs, installs, fabricates, and finances energy savings projects systems
for the lighting, heating and self generation of customer facilities. The
Company also provides these services to non-affiliated public utilities as a
performance contractor to reduce demand on the utility system and is entitled
to receive payments under demand side management programs.
The Company is a wholly-owned subsidiary of Eastern Utilities Associates (EUA),
a registered public utility holding company. In addition to its investment in
the Company, EUA has interests in retail and wholesale utility companies
operating in the New England region, a service corporation and two other non-
utility companies. As a subsidiary of EUA, the accounting policies and
practices of the Company are subject to review by the Securities and Exchange
Commission (SEC) under the Public Utility Holding Company Act of 1935. The
Company is regulated by the SEC in matters related to its own debt financings
and asset acquisitions. The SEC requires that the Company earn at least 50%
of its revenues within the New England and New York area. A description of the
significant accounting policies follows in Note B.
The prices charged by the Company to its Energy Management Services and Utility
Demand Side Management Programs customers are not regulated by any federal or
state regulatory agency. State Public Utility Commissions (PUCs) have broad
jurisdiction to regulate non-qualifying cogeneration facilities as electric
utilities. In some states where the Company has an interest in qualifying
cogeneration projects, it is possible that the PUC may seek to assert
jurisdiction over the terms of the Company's cogeneration contracts. To date,
no such actions have been taken. Although not expected, the Company cannot
predict whether these projects will be subject to such regulations in the
future.
B. Summary of Significant Accounting Policies
Equity Investment
The financial statements reflect the company's investments in seven partnership
entities under the equity method of accounting. These amounts are shown on the
company's balance sheet at December 31, 1993 and 1992 as investments in
associated companies.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements, Continued
For The Years December 31, 1993 and 1992
Reclassification
Certain prior period amounts on the financial statements have been
reclassified to conform with current year presentation.
Transactions with Affiliates
Transactions between the Company and other EUA affiliated companies include the
following: for accounting and other administrative services rendered by EUA
Service Corporation, the Company incurred costs of approximately $965,000 in
1993 and $568,000 in 1992 and paid office rental expense of approximately
$11,000 and $10,000, respectively to Eastern Edison Company.
Revenues
Revenues and contract expenses are based on the financial arrangements
established by each individual contract. Revenue recognition is determined as
follows:
Paid from Savings Contracts
Under paid from savings contracts, the Company receives payments from customers
as energy savings are calculated and verified on a regular basis over a fixed
contract ter m. Revenue is recognized as such savings are realized by
customers. Constructi on and installation costs are amortized as contract
expenses on a straight-line basis over the applicable contract term. Losses
on contracts are fully re cognized in the period that they become estimable.
Cogeneration
The Company has contracts with various customers for electrical and thermal
energy production from cogeneration equipment owned by the Company. Revenue
recorded under such contracts is recorded as energy is provided to customers.
Cost of energy sales are charged as incurred.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements, Continued
For The Years December 31, 1993 and 1992
Energy Savings Project Sales
Revenue from the sale of energy savings projects are recognized when the sales
are complete. All construction and installation costs are recognized as
contract expenses when the projects are sold.
Sales-Type Lease Contracts
Revenue from certain contracts classified as sales-type leases is recognized
when the savings to be realized by the customer is verified and therefore the
amount of the payments to be received by the Company becomes fixed. Interest
on the financing portion of the contracts is recognized as earned at rates
established at the outset of the financing arrangement. All construction and
installation costs are recognized as contract expenses when the contract
revenues are recorded.
Installation and Fabrication of Energy Savings Equipment
Revenue from the installation and fabrication of energy savings equipment is
recognized when the sale and/or installation is complete. All installation
and fabrication costs are recognized as the projects are completed and/or
sold.
Cost Recovery Accounting
In circumstances in which material uncertainties exist whereby the Company is
unable to determine whether a customer contract will be profitable over the
term of the contract, the Company accounts for revenues received under such
contracts as a recovery of its cost to the extent incurred. Thereafter,
revenue will be recognized either as received or when all material
uncertainties are resolved.
Interest Income
Interest income from notes receivable is recorded on the accrual basis over
the term of the note.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements, Continued
For The Years December 31, 1993 and 1992
Inventories
Inventories represent raw material utilized in the fabrication of lighting
retrofit kits by EUA NOVA and purchased computerized building heating and air
conditioning automation controls of EUA Day, both are divisions of the Company.
Inventories are stated at lower of cost (first-in, first-out) or market.
Property, Plant and Equipment
Property, plant and equipment, which are stated at cost, are comprised of
project energy management, demand reduction and cogeneration equipment, office
furniture and equipment, computer equipment, real property, and vehicles.
The components of cost include contracted work, direct labor and material,
direct and indirect overheads and interest capitalized during construction.
For financial statement purposes, depreciation on office furniture and
equipment and other depreciable assets is computed on the straight-line
method based on estimated useful lives ranging from five to forty years.
Project equipment is depreciated on the straight line method over the term of
the applicable contracts, or based on the estimated useful lives, whichever is
shorter. The depreciation terms range from five to fifteen years. Total
depreciation expense amounted to $8,609,000 and $7,623,000 in 1993 and 1992,
respectively.
Federal Income Taxes
In accordance with the EUA System's Tax Allocation Agreement, the general
policy of the Company with respect to accounting for federal income taxes is
to reflect in income the estimated amount of taxes currently payable, as
determined from the consolidated tax return on an allocated basis, and to
provide for deferred taxes on certain items subject to temporary differences.
Cash and Cash Equivalents
The Company considers all highly liquid investments with a maturity of three
months or less, when acquired, to be cash equivalents.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements, Continued
For The Years December 31, 1993 and 1992
C. Acquisitions
On December 28, 1993, EUA acquired all of the outstanding common stock of
James L. Day Company (Day Company) of Victor, N.Y., in exchange for $3.4
million of EUA Common Shares (108,985 shares). On the same date, EUA
contributed the net assets of Day Company to the Company. The acquisition was
effective November 30, 1993. Renamed EUA Day and operating as a division of the
Company, it is primarily engaged in the business of customization, installation
and servicing of building temperature control systems for the purpose of energy
conservation. The statement of income includes the net income of EUA Day for
December 1993 of $24,004.
On December 18, 1992 the Company acquired all of the outstanding stock of New
England Sun Control, Inc. (NESC) one of the Company's former suppliers of
energy efficient lighting equipment for $5.1 million, effective November 30,
1992. NESC was merged into the Company on the same date and now operates as a
division of the Company (EUA NOVA). The Company also acquired NESC's other
business activities including the retail sale and installation of energy
conserving window film for residential, commercial, industrial and
institutional sales and computer-aided design customer lighting services.
The statement of income includes the net income of EUA NOVA for December 1992
of $215,621.
Both of these acquisitions were accounted for using purchase accounting. The
acquisition of Day Company in December 1993 and NESC in December 1992 resulted
in the recognition of goodwill of approximately $2.5 million and $3.7 million,
respectively. The goodwill of Day Company and NESC is being amortized over a
period of 15 and 18 years, respectively. In 1993 the Company changed its
estimate of the amortization period of the goodwill from the NESC acquisition
from 10 years to 15 years. This change resulted in a decrease in amortization
expense of approximately $149,000.
On January 31,1994, the Company completed the acquisition of Northeast Energy
Management, Inc. (NEM) of Brunswick, Maine, in exchange for $12.2 million of
EUA Common Shares (464,579 shares) plus the payment of outstanding contingent
liabilities of NEM of approximately $8.1 million. NEM is an energy services
and demand side management contracting company and is operating as a wholly-
owned subsidiary of the Company. This acquisition has been accounted
for using the pooling method of accounting.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements, Continued
For The Years December 31, 1993 and 1992
D. Income Taxes
Components of income tax expense for the year 1993 and 1992 are as follows:
In Thousands 1993 1992
Federal:
Current $ 1,440 $ 650
Deferred 227 991
$ 1,667 $ 1,641
State:
Current 523 (180)
Deferred 137 498
$ 660 $ 318
Provision for income taxes $ 2,327 $ 1,959
Total income tax expense was different than the amounts computed by applying
federal income tax statutory rates to book income subject to tax for the
following reasons:
In Thousands 1993 1992
Federal income tax computed
at statutory rates $ 2,052 $ 1,631
Increases (decreases) in tax from:
state taxes, net of federal
income tax benefit 429 210
Other (154) 118
Provision for income taxes $ 2,327 $ 1,959
EUA Cogenex Corporation
Notes To Consolidated Financial Statements, Continued
For The Years December 31, 1993 and 1992
The provision for deferred taxes resulting from temporary differences are
comprised of the following:
In Thousands 1993 1992
Excess tax depreciation $ 1,015 $ 1,135
Deferred charges (9) 7
Effect of state and local taxes 137 497
Partnership timing differences 54 (444)
Net operating loss carry forward 262
Provision for Partnership contract losses (738)
Other -- Net
(95) 32
Total $ 364 $ 1,489
The Company adopted FASB statement No. 109 (FAS109), "Accounting for Income
Taxes" effective as of January 1993. FAS109 superseded FAS96 which required
recognition of deferred income taxes for temporary differences that are
reported in different years for financial reporting and tax purposes using the
liability method. Under the liability method deferred tax liabilities or
assets are computed using the tax
rates that will be in effect when the temporary difference reverse. The
adoption of FAS109 had no impact on the results of operation for 1993.
At December 31, 1993 total deferred tax assets for which no valuation allowance
was deemed necessary were $1.6 million and total deferred tax liabilities were
$4.8 million. Total deferred tax assets and liabilities are comprised as
follow (in thousands):
Deferred Tax Deferred Tax
Assets Liabilities
Alternative Plant Related
Minimum Tax $ 177 Differences $ 4,775
Provision for Partnership Post-Retirement
Contract Losses 73 Benefits 42
Bad Debts 145 Other 14
Pension 349
Other 218
Total $ 1,627 $ 4,831
EUA Cogenex Corporation
Notes To Consolidated Financial Statements, Continued
For The Years December 31, 1993 and 1992
The Company's share of the consolidated group's alternative minimum tax credits
is approximately $177,000 which can be used to reduce future tax liability and
has no expiration.
E. Notes Receivable
The Company has entered into arrangements with contractors to finance the
construction of energy savings agreements at the premises of host customers.
Interest income is accrued on these contracts based on the stated or implicit
rate within each note. Upon completion of the construction, based on the terms
of the individual agreement, the note (including accrued interest thereon) may
be fully repaid, or converted into long term financing collateralized by the
respective energy savings equipment. These long term notes receivable
currently range in maturity from two years to fifteen years with interest rates
ranging from 7.0% to 18.0%
Some energy savings projects in progress represent construction notes
receivable which may be satisfied by the contractor delivering to the Company
the energy savings agreement collateralized by the equipment and the right to
the revenue generated therefrom. In such instances, the purchase price of the
energy savings agreement is recorded as property and equipment and the
corresponding energy savings project in progress is reduced.
F. Net Investment in Sales-Type Leases
The Company leases equipment to customers under sales-type leases. As
sales-type leases, the lease payments to be received over the term of the
lease are recorded as a receivable at the inception of the lease. Finance
income attributable to the lease contracts is initially recorded as unearned
income and subsequently recognized as income under the interest method over
the term of the lease.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements, Continued
For The Years December 31, 1993 and 1992
The components of the net investment in sales-type leases are as follows
(in thousands):
1993 1992
Minimum lease payments receivable $ 2,489 $ 2,319
Less: Unearned interest 404 370
Current portion 568 402
Net investment in sales-type leases $ 1,517 $ 1,547
Future minimum lease payments due under sales-type leases at
December 31, 1993 are as follows (in thousands):
1994 $ 746
1995 661
1996 617
1997 267
1998 and thereafter 198
G. Contract Rights
Contract rights represent the cost of the Company's acquisition of a
collateralized financial interest in certain customer contracts which provide
the Company with energy savings payments. The cost of the contract rights are
being amortized on a straight line basis over the lives of the various
contracts which range from 5 years to 15 years.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements, Continued
For The Years December 31, 1993 and 1992
H. Long-Term Debt (in thousands)
1993 1992
Unsecured Notes Payable:
10.56% series due June 30, 2005 $35,000 $35,000
Interest only payable through
June 30, 1996. A 10% sinking fund
replacement is due annually
beginning June 30, 1996
This debt is unconditionally
guaranteed by EUA.
9.60% series due October 31, 2001 20,000 20,000
Interest only payable through
October 31, 1995. A sinking fund
replacement of $800,000 per quarter is
due beginning on October 31, 1995 and
thereafter until the debt is paid in
full.
7.22% series due September 30, 1997 15,000 15,000
Interest only payable through
September 30, 1997 with a final
payment of the entire note due
at that time.
7.0% series due September 15, 2000 50,000
Interest only payable through
September 15, 2000 with a final
payment of the entire note
due at that time.
Less Current Maturities -0- -0-
$120,000 $70,000
EUA Cogenex Corporation
Notes To Consolidated Financial Statements, Continued
For The Years December 31, 1993 and 1992
Scheduled maturities of long-term debt for the five years following 1993 are
as follow (in thousands):
1994 -0-
1995 $800
1996 $6,700
1997 $21,700
1998 $6,700
The Company is subject to certain covenants within the agreements relating to
its long term notes. The most restrictive of these covenants require the
Company to maintain a ratio of income before taxes plus fixed charges to fixed
charges of at least 1.10 to 1 and a common equity to capitalization ratio (as
defined in the agreements) of at least 20% through June 30, 1995 and not less
than 30% for any two successive quarters thereafter. The Company was in
compliance with these provisions at December 31, 1993.
In addition, in connection with the Company's 7.22% and 9.6% unsecured notes,
EUA is required to maintain an equity to total debt ratio of at least 20%
through June 30, 1995 and 30% thereafter. EUA was in compliance with this
provision at December 31, 1993.
I. Notes Payable
The EUA System companies, which include the Company, maintain short-term lines
of credit with various banks aggregating approximately $140 million of which
$90 million is available to the Company. At December 31, 1993, unused
short-term lines of credit amounted to $103 million. These credit lines are
available to other EUA System companies under joint credit line arrangements.
In accordance with informal agreements with the various banks, commitment fees
are required to maintain the certain lines of credit. At December 31, 1993 and
1992, the Company had approximately $15.9 million of which $7.8 million
represents bank borrowings and $8.1 million in borrowings from EUA and $42.7
million all of which came from banks, respectively, outstanding under these
arrangements at interest rates of 3.7% and 4.1%, respectively.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements, Continued
For The Years December 31, 1993 and 1992
J. Fair Value of Financial Instruments
The following methods were used to estimate the fair value of each class of
financial instruments for which it is practicable to estimate.
Cash and Cash Equivalents: The carrying amount approximates fair value because
of the short-term maturity of those instruments.
Net Investment In Sales-Type Leases and Long-Term Notes Receivable: The
carrying amounts approximate fair value due to the nature of the asset.
Long-Term Debt: The fair value of the Company's long-term debt was based on
quoted market prices for similar securities.
The estimated fair value of the Company's financial instruments at
December 31, 1993 are as follows (dollars in thousands):
Carrying Fair
Amount Value
Cash and Cash Equivalents $ 719 $ 719
Long-Term Notes Receivable $ 33,900 $ 33,900
Net Investment in Sales-Type
Leases $ 1,517 $ 1,517
Long-Term Debt $ 120,000 $ 122,656
EUA Cogenex Corporation
Notes To Consolidated Financial Statements, Continued
For The Years December 31, 1993 and 1992
K. Commitments and Contingencies
Pension
The Company participates with other EUA System companies in non-contributory
defined benefit pension plans covering substantially all of their employees.
Regular plan benefits are based on years of service and average compensation
over the four years prior to retirement or in the case of the supplemental
retirement plan for certain officers of the EUA System, benefits are based
on compensation at retirement date. It is the EUA System's policy to fund
the regular plan on a current basis in amounts determined to meet the funding
standards established by the Employee Retirement Income Security Act of 1974.
Net pension expense for the regular plan in 1993 and in 1992 included the
following components (in thousands):
1993 1992
Service cost-benefits earned
during the period $ 224 $ 162
Interest cost on projected
benefit obligation 283 209
Actual return on assets (352) (128)
Net amortization and deferrals 158 (39)
Net periodic pension expense
$ 313 $ 204
The funded status of the plan cannot be presented separately for the Company
as it participates in the plan with other subsidiaries of EUA.
The weighted average discount rate and rate of increase in future compensation
levels used in determining the actual present value of accumulated benefit
obligations in 1993 and 1992 were 8.75% and 6.00%, respectively. The expected
long-term rate of return on plan assets was 10% in 1993 and 1992.
The assumptions used to determine pension costs changed effective January 1,
1994 to 7.25%, 4.75% and 9.50% for the discount rate, compensation increase
rate and expected long-term return on assets, respectively. These rates were
used to calculate the plan's funded status at December 31, 1993.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements, Continued
For The Years December 31, 1993 and 1992
All benefits provided under the supplemental plan are unfunded and any payments
to plan participants are made by the Company. For the years ended December 31,
1993 and 1992 expenses related to the supplemental plan were approximately
$107,000 and $11,000, respectively.
Post Retirement Benefits Other than Pension
Certain retired employees are entitled to participate in health careand life
insurance benefit plans. Health care benefits are subject to deductibles and
other limitations. Health care and life insurance benefits are partially
funded by the Company for all qualified employees.
The Company adopted FAS106 "Accounting for Post-Retirement Benefits Other Than
Pensions", as of January 1, 1993. This standard establishes accounting and
reporting standards for such post-retirement benefits as health care and life
insurance. FAS106 further requires the accrual of the cost of such benefits
during an employee's years of service and the recognition of the actuarially
determined total post-retirement benefit obligations (Transition Obligation)
earned by existing employees and retirees. The Company has elected to
recognize the Transition Obligation over a period of twenty years as permitted
by FAS106. The resultant annual expense, including amortization of the
Transition Obligation and net of capitalized amounts was approximately $126,000
in 1993.
The total cost of post-retirement benefits other than pension for 1993 includes
the following components (in thousands):
1993
Service cost $ 121
Interest cost 81
Actual return of plan assets (4)
Amortization of transition obligation 41
Other amortizations and deferrals-net 1
Total post-retirement benefit cost $ 240
EUA Cogenex Corporation
Notes To Consolidated Financial Statements, Continued
For The Years December 31, 1993 and 1992
Assumptions:
Discount rate 8.75%
Health care cost trend rate - near-term 13%
- long-term 6.25%
Salary increase rate 6.00%
Rate of return on plan assets - non-union 5.50%
Reconciliation of funded status:
Accumulated post-retirement benefit obligation (APBO):
Retirees $ (33)
Active employees fully eligible for benefits (202)
Other active employees (500)
Total (735)
Fair value of assets, primarily notes and bonds 165
Unrecognized transition obligation 488
Unrecognized prior service cost -0-
Unrecognized net loss (gain) 62
(Accrued)/prepaid post-retirement benefit cost $ (20)
The assumptions used to determine post-retirement benefit costs were changed
effective January 1, 1994 to 7.25%, 13.0% and 5.0% for the discount rate,
near-term health care cost trend and long-term health care cost trend,
respectively. These assumptions were used to calculate the funded status of
post-retirement benefits at December 31, 1993.
Increasing the assumed health care cost trend rate by 1% each year would
increase the total post-retirement benefit cost for 1993 by approximately
$25,000 and increase the total accumulated post-retirement benefit obligation
by approximately $101,000.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements, Continued
For The Years December 31, 1993 and 1992
Prior to 1993 the Company followed the "pay-as-you-go" methodology for
accounting for post retirement benefits other than pensions. Prior to 1993,
the Company had not incurred any such post-retirement benefit costs.
The Company has also established an irrevocable external Voluntary Employee
Benefit Association Trust Fund. Contributions to the fund commenced in
March 1993 and totaled approximately $167,000 during 1993.
Post-Employment Benefits
In November 1992 the FASB issued statement No. 112 "Employers Accounting for
Post-Employment Benefits". The Company is required to adopt this standard no
later than January 1, 1994. The estimated impact of this standard on the
Company is immaterial and therefore it is anticipated that no liability will
be recorded.
Expenditures
The Company anticipates expenditures for investments in energy savings projects
to be $53.7 million for 1994 and $237.5 million for the years 1995 through
1998.
Operating Leases
The Company conducts its operations in leased facilities under certain
non-cancelable operating lease arrangements which expire through 1998. Future
minimum payments under these leases are as follows (in thousands):
1994 $ 521
1995 493
1996 367
1997 317
1998 114
$ 1,812
Total rent expense under the operating leases was $473,400 and $224,290 in 1993
and 1992, respectively.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements, Continued
For The Years December 31, 1993 and 1992
Letters of Credit and Performance Bonds
The Company is required under certain contracts with various government
entities and utility companies to maintain either a letter of credit or
performance bond to collateralize performance under the contract. These
contingent obligations will only be drawn by the customer if the Company fails
to perform under the construction contract. Upon performance, the customer
would be obligated to pay the Company the full amount under the respective
energy savings agreement. The total amount of outstanding letters of credit
and performance bonds as of December 31, 1993 was approximately $ 3.6 million
and $7.3 million, respectively, and as of December 31, 1992 were approximately
$2.9 million and $3.6 million, respectively.
As of December 31, 1993, management is not aware of any potential drawings
under the letters of credit or claims made to the surety under the performance
bonds.
Litigation
One of the Company's partnerships, EUA/Onsite, L.P. (EUA/Onsite) has under
development a 1.5 MW cogeneration facility which represents the last of the
Company's cogeneration projects in the construction phase. This 1.5 MW
facility has experienced start-up delays and cost over runs. Presently,
EUA/Onsite has invested approximately $4.4 million in the facility and is
negotiating with the customer certain contract terms and modifications to the
facility that would complete the projects. If such negotiations and
modifications are successful, the Company anticipates that the plant will be
placed in commercial operation during the late part of 1994. However, the
Company cannot give any assurance as to when, and if, the facility will be
completed, or if completed, whether the projected revenues for the facility
will be sufficient to justify the carrying value of the facility. In June of
1993, EUA/Onsite filed a lawsuit against the contractor responsible for the
design and construction of the facility, as well as against the surety on the
contractor's performance bond. In late September 1993, the contractor filed a
cross-complaint seeking approximately $300,000 for payments withheld by
EUA/Onsite for the contractor's deficient performance. EUA/Onsite intends to
pursue it's claims vigorously. The Company does not believe that the ultimate
resolution of this matter will have a material adverse impact on its financial
position.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements, Continued
For The Years December 31, 1993 and 1992
In addition, the Company and certain of its partnerships are involved in
certain legal actions and claims arising in the ordinary course of business.
Management believes, based on the advise of its legal counsel, that such
litigation and claims will be resolved without material adverse effects on the
Company's financial position and results of operation.
Other
Under the terms of the Stock Purchase Agreement between the Company and NESC,
the seller has the opportunity to earn a bonus based upon EUA NOVA's financial
performance over a four year period from the initial closing. The contingent
payout, if any, is based upon an agreed-to formula between the Company and the
seller. The maximum additional payout shall not exceed $3.5 million over the
four year period ending November 30, 1996 and will be accounted for as an
addition to the purchase price. As of November 30, 1993, the first year of the
earn out bonus period, the seller has earned approximately $400,000.
The shareholders of Day Company are also entitled to receive additional EUA
common shares under the terms of the merger agreement. This contingent earn
out is based upon EUA Day's financial performance over a two year period after
the closing date. The contingent payment, if any, is based upon an agreed to
formula between the Company and the former shareholders of Day Company. The
maximum additional payout shall not exceed $1.0 million over the two year
period and will be accounted for as an addition to the purchase price.
The Company has entered into a preliminary agreement with its partner in the
EUA/Onsite partnership that would permit the partner to purchase the Company's
share of the partnership interest. This agreement will expire on December 31,
1994. The Company can not predict whether the agreement will be exercised.
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
SCHEDULE XV - STATEMENT OF INCOME
ACCOUNT DESCRIPTION CURRENT YEAR PRIOR YEAR
INCOME
415 Sales 13,997,257 1,409,042
417 Project Revenues 37,311,449 36,451,050
418 Equity in earnings (2,831,043) (2,806,878)
419/421/450 Miscellaneous income 10,653,145 8,009,555
TOTAL 59,130,808 43,062,769
EXPENSES
904 Uncollectible account 203,319 210,839
912 Demonstrating and selling expense 294,059 -0-
913 Advertising expense-merchandising 114,908 -0-
920 Salaries and wages 4,895,157 2,950,809
921 Office supplies and expenses 1,153,156 624,918
922 Administrative expense (210,203) (160,813)
transferred-(credit)
923 Outside service employed 934,907 965,547
924 Property insurance 259,611 98,209
925 Injuries and damages 74,625 12,051
926 Employee pensions and benefits 712,064 418,588
928 Regulatory commission expense 85 610
930.1 General advertising expenses -0- -0-
930.2 Miscellaneous general expenses 183,871 386,663
931 Rents 461,178 260,897
935 Maintenance of structures and 66,279 17,182
equipment
403/405 Depreciation and amortization expense 683,633 279,215
408.1 Taxes other than income taxes 458,960 227,167
409.1 Income taxes (credit) 1,963,363 470,124
410.1 Provision for deferred income taxes 364,335 1,488,518
411.1 Provision for deferred income taxes -0- -0-
-credit
416 Cost of goods sold 9,022,278 894,939
417.1 Expenses nonutility operations 25,221,739 24,901,180
421.2 Loss-disposition of property 157,702 -0-
426.1 Donations 7,640 2,775
426.3 Penalties 1,872 -0-
426.5 Other deductions 308,468 5,425
427 Interest on long-term debt 7,461,097 5,887,432
428 Amortization of debt disc. and 45,664 13,782
expenses
430 Interest on debt to associated 399,715 -0-
companies
431 Other interest expense 1,247,914 1,437,397
432 Capitalized interest (credit) (892,444) (458,824)
Total Expense 55,594,952 40,223,630
Net Income 3,535,856 2,839,139
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
ANALYSIS OF BILLINGS
SALES & PROJECT REVENUES
ACCOUNTS 415/417
DESCRIPTION TOTAL COST EXCESS
OR
DEFICIENCY TOTAL AMOUNT
1. Utility Load Reduction Programs -0- -0- 31,816,714
2. Energy Management Programs -0- -0- 17,468,237
3. Packaged Cogeneration -0- -0- 2,023,755
TOTAL 51,308,706
INSTRUCTION: Provide a brief description of the sales and services rendered
by each category in accordance with sales and service contracts and list
amounts applicable per category:
(A)(B) The following is a Summary of Billings by Geographical Area:
New England 28,989,766
New York 10,722,429
Outside New England and New York 9,572,756
49,284,951
(A) Includes EUA Nova & EUA Day revenues of $13,997,257 and
$251,201, respectively.
(B) Excludes cogeneration revenue of $2,023,755.
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
ANALYSIS OF MISCELLANEOUS INCOME
INTEREST INCOME AND OTHER INCOME
ACCOUNTS 419/421
DESCRIPTION OF ITEMS AMOUNTS
ACCOUNT 419 - INTEREST INCOME AND OTHER INCOME
Interest Income
Micro Utility, L.P. 598,103
EUA/Highland Energy Group 60,212
EUA/Onsite 1,571,743
EUA/FRCII Energy Associates 1,089,864
EUA/ICC Partners, L.P. 76,409
Energy Capital & Services I & II 1,023,169
Greater Lawrence Sanitation 13,763
Sycom Enterprises 555,107
Columbia University 313,318
MA Institute of Technology Phase II 420,094
IES - State of Connecticut 8,352
Boston University Phase II 100,874
Sycom - Pepco 199,563
Veterans Association Hospital 234,986
Boston Edison DSM Notes 624,193
Modicon 5,953
Broadway Trade Center 17,521
Portsmouth City Schools 62,802
White Memorial Medical Center 36,502
Total Interest Income 7,012,528
Other Interest Income
Enersave - PSE&G 198,270
Boston Mutual 7,612
1120 Vermont Avenue 121,170
Mercy Hospital 9,956
Enersave - PSE&G 69,332
Southmore 35,445
Other (157,129)
Total Other Interest Income 284,656
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
ANALYSIS OF MISCELLANEOUS INCOME
INTEREST INCOME AND OTHER INCOME (Continued)
DESCRIPTION OF ITEMS AMOUNTS
Finance Fees 15,863
EUA/Onsite 6,592
Sycom 6,197
EUA/Highland 481
Total Finance Fees 29,133
Other Income
Management Fees 573,404
Maintenance Fees 384,055
Accounting Fees 120,000
Engineering Fees 1,615,486
Bidderman Settlement 50,000
Miscellaneous Other Income 25,308
Total Other Income 2,768,253
Total for Account 419 10,094,570
ACCOUNT 421.0 - MISCELLANEOUS NON-OPERATING INCOME
Miscellaneous 71,314
Total for Account 421.0 71,314
ACCOUNT 421.1 - GAIN-DISPOSITION OF PROPERTY
Kodak 200,000
USMCAS 82,691
MAPCO 8,609
Memorial Hospital SW 24,400
Hillsborough 26,934
Hospital Energy Systems 34,542
Southmore Medical Center 51,777
Miscellaneous 16,158
Total for Account 421.1 445,111
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
TOTAL DEPARTMENT OR
DESCRIPTION OF ITEMS AMOUNT OVERHEAD SERVICE
FUNCTION
920 SALARIES AND WAGES
921 OFFICE SUPPLIES AND EXPENSES
922 ADMINISTRATIVE EXPENSE TRANSFERRED
- CREDIT
923 OUTSIDE SERVICES EMPLOYED
924 PROPERTY INSURANCE
925 INJURIES AND DAMAGES
926 EMPLOYEE PENSIONS AND BENEFITS
928 REGULATORY COMMISSION EXPENSE
930.1 GENERAL ADVERTISING EXPENSE
930.2 MISC. GENERAL EXPENSE
931 RENTS
932 MAINTENANCE OF STRUCTURES AND NOT
EQUIPMENT APPLICABLE
403 DEPRECIATION AND AMORTIZATION EXPENSE
408 TAXES OTHER THAN INCOME TAXES
409 INCOME TAXES
410 PROVISION FOR DEFERRED INCOME TAXES
411 PROVISION FOR DEFERRED INCOME TAXES
- CREDIT
419.1 AFUDC - EQUITY
426.1 DONATIONS
426.5 OTHER DEDUCTIONS
427 INTEREST ON LONG-TERM DEBT
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES
431 OTHER INTEREST EXPENSE
432 AFUDC - BORROWED FUNDS
INSTRUCTIONS: Indicate each department or service function. (See Instruction
01-3 General Structure of Accounting System: Uniform System of Accounts.)
TOTAL EXPENSES
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
DEPARTMENTAL SALARY EXPENSE NUMBER
NAME OF DEPARTMENT INCLUDED IN AMOUNTS BILLED TO PERSONNEL
Indicate each department TOTAL PARENT OTHER NON END OF
or service function AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR
NOT APPLICABLE
TOTAL
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed.
If the aggregate amounts paid to any one payee and included within one
subaccount is less than $25,000, only the aggregate number and amount of all
such payments included within the subaccount need be shown. Provide a subtotal
for each type of service.
RELATIONSHIP
"A"=ASSOCIATE
FOR WHOM PURCHASED "NA"=NON
ADDRESS ASSOCIATE AMOUNT
Outside Services-Legal
McDermott, Will & Emery 75 State Street,
Boston, MA 02109 NA 211,465
Tenzer, Greenblatt, Fallon 405 Lexington Avenue,
Kaplin New York, NY 10174 NA 78,594
Charlotte S. Murphy 129 Pine Ridge Road,
No. Andover, MA 01845 NA 34,507
Hinckley, Allen & Snyder 1500 Fleet Center,
Providence, RI 02903 NA 54,075
Various (45) ---- NA 165,019
TOTAL 543,660
Outside Services-Accounting
Coopers & Lybrand One International Square,
Boston, MA 02110 NA 63,436
Various (3) ---- NA 14,067
TOTAL 77,503
Outside Services-Engineering
Measuring & Monitoring 2 Broad Street,
Services, Inc. Red Bank, NJ 07701 NA 41,329
Michael Schack P.O. Box 515,
Central Valley, NY 10917 NA 25,162
TOTAL 66,491
Outside Services - E.D.P. NA 4,198
Outside Services - Commissions
Matt C. Kiley RFD Box 91, Town Highway #30,
Concord, VT 05824 87,413
Various (191) NA 107,012
TOTAL 194,425
SUB-TOTAL 886,277
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
OUTSIDE SERVICES EMPLOYED - Continued
ACCOUNT 923
INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed.
If the aggregate amounts paid to any one payee and included within one
subaccount is less than $25,000, only the aggregate number and amount of all
such payments included within the subaccount need be shown. Provide a subtotal
for each type of service.
RELATIONSHIP
"A"=ASSOCIATE
FOR WHOM PURCHASED "NA"=NON
ADDRESS ASSOCIATE AMOUNT
Sub-total from previous page
886,227
Outside Services - Other
Darcy Immerman 12 Kent Street,
Scituate, MA 02066 NA 33,591
Various (29) NA 63,711
TOTAL 97,302
Capitalization of Outside
Services (48,672)
TOTAL 934,907
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
GENERAL ADVERTISING EXPENSES
ACCOUNT 930.1
INSTRUCTIONS: Provide a listing of the amount included in Account 930.1,
"General Advertising Expenses", classifying the items according to the nature
of the advertising and as defined in the account definition. If a particular
class includes an amount in excess of $3,000 applicable to a single payee, show
separately the name of the payee and the aggregate amount applicable thereto.
DESCRIPTION NAME OF PAYEE AMOUNT
NONE
TOTAL NONE NONE
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
MISCELLANEOUS GENERAL EXPENSES
ACCOUNT 930.2
INSTRUCTIONS: Provide a listing of the amount included in Account 930.2,
"Miscellaneous General Expenses", classifying such expenses according to their
nature. Payments and expenses permitted by Sections 321(b)(2) of the Federal
Election Campaign Act, as amended by Public Law 94-283 in 1976 (2U.S.C.>441
(b) (2) shall be separately classified.
DESCRIPTION AMOUNT
EUA Service Corporation Allocated Expenses 198,462
Capitalization of EUA Service Corporation Allocated Expenses (122,246)
Seminar Fees 704
Petty Cash Expense, Letter of Credit & Bank Charges 11,039
Franchise & Annual Report Filing Fees 2,713
Arbitration & Other Filing Fees 2,000
Subscriptions 1,013
Employment Fees 4,519
Account Settlement 57,604
Miscellaneous 28,063
TOTAL 183,871
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
RENTS
ACCOUNT 931
INSTRUCTIONS: Provide a listing of the amount included in Account 931,
"Rents", classifying such expenses by major groupings of property, as defined
in the account definition of the Uniform System of Accounts.
TYPE OF PROPERTY AMOUNT
Building Rents 404,821
Automobile Leasing 3,997
Data Processing and Other Equipment Rents 52,360
TOTAL 461,178
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
TAXES OTHER THAN INCOME TAXES
ACCOUNT 408.1
INSTRUCTIONS: Provide an analysis of Account 408.1, "Taxes Other Than Income
Taxes". Separate the analysis into two groups: (1) other than U.S.Government
taxes and (2) U.S. Government taxes. Specify each of the various kinds of
taxes and show the amounts thereof. Provide a subtotal for each class of tax.
KIND OF TAX AMOUNT
Other Than U.S. Government Taxes
State of MA Unemployment Compensation 33,082
State of NY Unemployment Compensation 11,982
MA Health Insurance 1,136
MA Job Development Fund 644
State of Pennsylvania Unemployment 592
State of New Jersey Unemployment 1,611
State of New Jersey Disability 379
State of California Unemployment and Training 133
Property Taxes 35,535
State of Maryland Unemployment 306
State of Louisiana Unemployment 581
State of Maine Unemployment 259
State of Connecticut Sales & Use 3,999
U.S. Government Taxes
Federal Unemployment Compensation 200,412
F.I.C.A. (Net of A & G Credit) 168,309
TOTAL 458,960
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
DONATIONS
ACCOUNT 426.1
INSTRUCTIONS: Provide a listing of the amount included in Account 426.1,
"Donations", classifying such expenses by its purpose. The aggregate number
and amount of all items of less than $3,000 may be shown in lieu of details.
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
Advance New York Economic Economic Development 2,640
Partnership
Miscellaneous (11) ---- 5,000
TOTAL 7,640
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
OTHER DEDUCTIONS
ACCOUNT 426.5
INSTRUCTIONS: Provide a listing of the amount included in Account 426.5,
"Other Deductions", classifying such expenses according to their nature.
DESCRIPTION NAME OF PAYEE AMOUNT
Expenses incurred in connection with VARIOUS 308,468
the acquisition of Northeast Energy
Management, Inc.
TOTAL 308,468
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
SCHEDULE XVIII - NOTES TO STATEMENT OF INCOME
INSTRUCTIONS: The space below is provided for important notes regarding the
statement of income or any account thereof. Furnish particulars as to any
significant increase in services rendered or expenses incurred during the year.
Notes relating to financial statements shown elsewhere in this report may be
indicated here by reference.
See "Notes to Financial Statements" on page 28.
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
SCHEDULE OF TERMINATED CONTRACTS
INSTRUCTIONS: Provide a schedule of terminated and/or cancelled contracts
their value, the amount of gain/loss to the company, and the reason for the
termination.
REASON FOR BOOK VALUE -
CONTRACT/PROJECT TERMINATION NET AT CLOSE GAIN/
OF YEAR (LOSS)
101 J.B. Thomas Hospital Voluntary/Buyout 208,702 (35,957)
142 Hillsboro City Voluntary/Buyout 26,909 26,934
314 Maidenform Voluntary/Buyout 81,660 482
387 Camden City Municipal Voluntary/Buyout 221,189 UNDER NEGOTIATIONS
Buildings
544 Rockville Nursing Voluntary/Buyout 10,627 330
559 Wayside of Plainville Voluntary/Buyout 919 680
657 Memorial Hospital SW Voluntary/Buyout 545,400 24,400
882 Parkview Medical Voluntary/Buyout 85,821 32,887
883 Huntsville Medical Voluntary/Buyout 27,107 19,026
884 Brazosport Voluntary/Buyout 51,589 16,926
860 Mapco Voluntary/Buyout 75,442 8,609
865 Mercy Hospital Voluntary/Buyout 216,956 (34,297)
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
SCHEDULE OF PROJECT VALUES
INSTRUCTIONS: A schedule of projects over $100,000 broken down by demand
side management, energy management services, and cogeneration including the
investment and, based on the contract the estimated future total project
value.
BOOK VALUE - NET ESTIMATED FUTURE
DESCRIPTION AT CLOSE OF YEAR VALUE
108 City of Lawrence (2) 184,555 300,960
130 Jackson Brook Institute (2) 189,732 646,583
152 T.J. Maxx (2) 132,977 86,283
212 West Seneca Development Center (1) 2,457,201 (A) 11,359,727
228 Clark College (2) 330,514 341,104
240 Worcester Company (3) 4,362,878 (A) 6,720,252
246 Raratan Valley Community College (2) 120,297 120,900
247 Lebanon Valley College (2) 190,573 257,400
305 Rowes (Beacon) (1) 222,757 584,951
307 Schraft's (1) 215,001 986,302
359 Guest Quarters - Waltham (1) 146,981 417,343
364 Prince George (2) 420,961 474,053
382 Medical College (2) 1,019,822 (A) 18,646,868
383 Harvard School (2) 214,287 879,167
385 Robertwood Johnson University 293,210 141,666
Hospital (2)
386 Warren Hospital (2) 119,338 (A) 2,612,788
387 Camden City Municipality (2) 221,189 275,000
390 Bucks City College (2) 105,046 (A) 2,690,089
393 Hackensack Medical Center (2) 299,261 576,849
394 Keystone Junior College (2) 150,329 404,062
435 Alpha Industries (1) 211,448 501,646
505 Werner Erhard & Associates (2) 135,000 (B) 0
523 Polaroid Corporation (1) 131,666 355,755
570 Pepsi-Cola Metropolitan 513,122 865,172
Bottling Co. (1)
583 Lahey Clinic (1) 150,877 372,699
584 Orange County Community College (1) 666,321 1,595,365
608 Town of Clarkstown (1) 101,842 284,501
611 Boston University Phase I (1) 772,530 1,059,027
612 Watt Management Company (2) 218,879 278,964
655 Department of Energy Building- 755,881 1,990,632
Lighting (1)
676 Dominican Convent (1) 150,873 469,769
680 Closter Board of Education (1) 102,497 79,775
684 North Rockland Central School Dist. (1) 883,852 1,984,036
696 MEM Company (1) 205,913 519,063
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
SCHEDULE OF PROJECT VALUES - Continued
BOOK VALUE - NET ESTIMATED FUTURE
DESCRIPTION AT CLOSE OF YEAR VALUE
700 Palm Beach Gardens (2) 167,977 208,170
708 Materials Research Corporation (1) 136,313 178,965
759 Chester Union Free School District (1) 153,644 330,000
762 USA Dept. Navy (2) 673,395 895,570
763 Com/Electric - All Projects (1) 2,820,698 3,647,813
777 Barnert Hospital 165,267 232,198
783 1560 Broadway (1) 307,136 325,585
789 Hebrew Academy of Five Towns & Rock (2) 101,824 171,118
806 Nanuet Public Schools (1) 225,802 417,915
811 Hornick (1) 161,812 541,511
843 Nihonmachi Terrace (Japanese American (3) 170,218 214,500
858 Greendale Mall/New England Dev. (2) 198,577 224,532
861 Fort McPherson/Fort Gillem (2) 1,561,585 2,573,361
862 Mobile Airport Authority (2) 152,886 198,900
868 UPS (1) 489,668 2,943,407
891 400 Elmwood Associates (2) 148,899 215,534
915 Briarwood One Limited Partnership (2) 139,703 132,600
922 Barry University (2) 1,249,831 688,701
TOTAL 25,422,845 73,019,131
(A) Includes recovery of estimated fuel costs paid by the Company. (B)
Project expected to be written-off during 1994.
(1) Utility Load Reduction Programs
(2) Energy Management Programs
(3) Packaged Cogeneration
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
SCHEDULE OF ESTIMATED KILOWATTS SAVED
INSTRUCTIONS: Provide a statement of estimated kilowatts saved during the past
year and cumulatively, both within and outside of New England through demand
side management projects.
UTILITY SPONSOR ESTIMATED CURRENT ESTIMATED
YEAR KILOWATTS CUMULATIVE
SAVED KILOWATTS SAVED
Commonwealth Electric Co. (1) 5,291 5,291
Public Service Electric & Gas Co. (3) 8,846 8,846
Orange and Rockland Utilities Inc. (2) 2,519 2,519
Central Maine Power Company (1) 9,516 9,516
Rochester Gas and Electric Corp. (2) 1,939 1,939
Rockland Electric Company (3) 759 759
Massachusetts Electric (1) 86 86
Boston Edison (1) 21,230 21,230
Consolidated Edison (2) 3,430 3,430
TOTAL 53,616 53,616
(1) New England
(2) New York
(3) Outside New England and New York
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
PROJECT INCOME STATEMENT
INSTRUCTIONS: Provide project income statements with budget variances
explained for any projects valued over $100,000 where there is a loss for the
year.
YTD 1993
PROJECT/DESCRIPTION BUDGET ACTUALS VARIANCE
152 - T.J. MAXX
Gross Revenue 79,800 60,906 ( 18,894)
Expenses
Fuel Bills -0- -0- -0-
Electric Bills -0- -0- -0-
Maintenance -0- 4,242 4,242
Debt Service -0- -0- -0-
Other Direct Costs -0- -0- -0-
Depreciation/amort 93,876 93,876 -0-
Total Expenses 93,876 98,118 ( 18,894)
Net Income (loss) (14,076) (37,212) ( 23,136)
Explanation: Project experienced several ballast failures that were beyond the
manufactures warranty period and were not budgeted for. These maintenance
costs are netted against billed revenues.
YTD 1993
PROJECT/DESCRIPTION BUDGET ACTUALS VARIANCE
228 - Clark College
Gross Revenue 120,425 120,388 (37)
Expenses
Fuel Bills -0- -0- -0-
Electric Bills -0- -0- -0-
Maintenance -0- -0- -0-
Debt Service -0- -0- -0-
Other Direct Costs -0- -0- -0-
Depreciation/amort 79,584 120,489 40,905
Total Expenses 79,584 98,118 40,905
Net Income (loss) 40,841 (101) (40,942)
Explanation: Budgeted depreciation expense reflects a longer depreciable life
then is actually expected. Actual depreciation expense includes a retroactive
catch up adjustment.
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
PROJECT INCOME STATEMENT - Continued
YTD 1993
PROJECT/DESCRIPTION BUDGET ACTUALS VARIANCE
246 - Raratan Valley Comm College
Gross Revenue 46,800 46,800 -0-
Expenses
Fuel Bills -0- -0- -0-
Electric Bills -0- -0- -0-
Maintenance 1,200 4,190 2,990
Debt Service -0- -0- -0-
Other Direct Costs -0- -0- -0-
Depreciation/amort 55,512 55,512 -0-
Total Expenses 56,712 59,702 (2,990)
Net Income (loss) (9,912) (12,902) (2,990)
Explanation: Project experienced greater than anticipated ballast failure.
These ballasts were out of the warranty period.
YTD 1993
PROJECT/DESCRIPTION BUDGET ACTUALS VARIANCE
387 - Camden County Municipal Bldgs
Gross Revenue -0- -0- -0-
Expenses
Fuel Bills -0- 19,791 19,791
Electric Bills -0- (361) (361)
Maintenance -0- 1,996 1,996
Debt Serv -0- -0- -0-
Other Direct Costs -0- 65
65
Depreciation/amort -0- 102,084 102,084
Total Expenses -0- 123,575 123,575
Net Income (loss) -0- (123,575) (123,575)
Explanation: Customer voluntarily terminated contract on January 1, 1993. A
dispute has arisen concerning the proposed termination value. The company has
constructively continued to depreciate this project. The company will go to
binding arbitration in April, 1994.
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
PROJECT INCOME STATEMENT - Continued
YTD 1993
PROJECT/DESCRIPTION BUDGET ACTUALS VARIANCE
759 - Chester Union Free School Distr
Gross Revenue 7,029 2,000 (5,029)
Expenses
Fuel Bills -0- -0- -0-
Electric Bills -0- -0- -0-
Maintenance 2,613 1,885 (728)
Debt Service -0- -0- -0-
Other Direct Costs -0- -0- -0-
Depreciation/amort 9,888 9,246 (642)
Total Expenses 12,501 11,131 (1,370)
Net Income (loss) (5,472) (9,131) (3,659)
Explanation: Delay in the actual billings, customer was billed in February,
1994 for the period covering September 16, 1993 through December 31, 1993.
YTD 1993
PROJECT/DESCRIPTION BUDGET ACTUALS VARIANCE
811 - Hornick
Gross Revenue 12,585 -0- (12,585)
Expenses
Fuel Bills -0- -0- -0-
Electric Bills -0- -0- -0-
Maintenance 8,724 534 (8,190)
Debt Service -0- -0- -0-
Other Direct Costs -0- 76 76
Depreciation/amort 12,924 11,926 (998)
Total Expenses 21,648 12,536 (9,112)
Net Income (loss) (9,063) (12,536) (3,473)
Explanation: Project completed and budgeted as of October 1, 1994, however,
actual billing will commence upon receipt of the completion certificate.
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
PROJECT INCOME STATEMENT - Continued
YTD 1993
PROJECT/DESCRIPTION BUDGET ACTUALS VARIANCE
834 - Washboards Laundries
Gross Revenue 13,200 1,053 (12,147)
Expenses
Fuel Bills -0- -0- -0-
Electric Bills -0- -0- -0-
Maintenance -0- 118 118
Debt Service -0- -0- -0-
Other Direct Costs -0- -0- -0-
Depreciation/amort 12,552 12,552 -0-
Total Expenses 12,552 12,670 118
Net Income (loss) 648 (11,617) (12,265)
Explanation: Two of the three E-Tech (heat-pumps) at the project have been
off line as a result of maintenance problems.
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
ORGANIZATIONAL STRUCTURE - EUA COGENEX CORPORATION
J. Fitzpatrick, President
D. Immerman, Director of Sales
A. Lennon, Vice President
E. Damiani, Manager of Operations
K. Johnson, Office Manager
J. Frieband, Manager of Engineering and Construction M. Patino,
Director of Project Development
E. Liston, Vice President
J. Granahan, Cogeneration Business Manager
E. Kaitz, Manager Engineering and Construction
C. Pellegrini, Director of Cogeneration Systems
B. Pallone, Vice President (EUA Cogenex Corporation, Massachusetts)
M. Aronson, Director of Operations
L. Stout, Manager of Commercial Finance
M. White, Vice President and Assistant Comptroller
K. Stearns, Manager of Personnel
T. Thomas, Accounting Supervisor
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
ORGANIZATIONAL STRUCTURE - EUA NOVA
R. Eannarino, President
W. Luther, Senior Divisional Vice President
B. Niger, General Manager
J. Hutcheson, Office Manager
W. Sifflard, Divisional Vice President
J. Davey, Manager of Construction Services
D. Trigg, Manager of Lighting Applications
S. Eannarino, Manager of Technical Services
B. Mirza, Divisional Vice President
B. Pesatura, Manager of Engineering and Design
S. Paquette, Manager of Manufacturing Operations
B. Murphy, Manager of Administration and Finance
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
ORGANIZATIONAL STRUCTURE - EUA DAY
J. Day, President
W. Pratt, Executive Vice President, Administration and Finance
P. VanDerMalle, Manager of Accounting and Administration
E. Orban, Vice President and General Manager of Operations
R. Ornsby, Director of Sales
ANNUAL REPORT OF EUA Cogenex Corporation
SIGNATURE CLAUSE
Pursuant to the requirements of the Public Utility Holding Company Act of
1935 and the rules and regulations of the Securities and Exchange Commission
issued thereunder, the undersigned company has duly caused this report to be
signed on its behalf by the undersigned officer thereunto duly authorized.
EUA Cogenex Corporation
(Name of Reporting Company)
By: ________________________________________
(Signature of Signing Officer)
Richard M. Burns, Comptroller
(Printed Name and Title of Signing Officer)
Date:_________________________________
FORM U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1993 and Ending December 31, 1993
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
EUA COGENEX CORPORATION
(Exact Name of Reporting Company)
A Subsidiary SERVICE COMPANY
("Mutual" or "Subsidiary")
