FORM U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1994 and Ending December 31, 1994
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
EUA COGENEX CORPORATION
(Exact Name of Reporting Company)
A Subsidiary SERVICE COMPANY
("Mutual" or "Subsidiary")
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1994 and Ending December 31, 1994
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
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 - 71
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 7-14
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF COMPANY PROPERTY Schedule III 15
INVESTMENTS Schedule IV 16-18
ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES Schedule V 19
ACCOUNTS RECEIVABLE AGING Schedule VI 20
ACCUMULATED PROVISION FOR UNCOLLECTABLE Schedule VII 21
ACCOUNTS
MISCELLANEOUS CURRENT AND ACCRUED ASSETS Schedule VIII 22
MISCELLANEOUS DEFERRED DEBITS Schedule IX 23
PROPRIETARY CAPITAL Schedule XI 24
LONG-TERM DEBT Schedule XII 25
CURRENT AND ACCRUED LIABILITIES Schedule XIII26-27
NOTES TO FINANCIAL STATEMENTS Schedule XIV28-44
COMPARATIVE INCOME STATEMENT Schedule XV 45
ANALYSIS OF BILLING - SALES & PROJECT REVENUES Accounts 514/417 46
ANALYSIS OF MISCELLANEOUS INCOME Accounts 419/421 47-49
SCHEDULE OF EXPENSE DISTRIBUTION Schedule XVII 50
DEPARTMENTAL ANALYSIS OF SALARIES Account 920 51
OUTSIDE SERVICES EMPLOYED Account 923 52-53
GENERAL ADVERTISING EXPENSES Account 930.1 54
MISCELLANEOUS GENERAL EXPENSES Account 930.2 55
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
SCHEDULE OR PAGE
ACCT. NO. NO.
Description of Schedules and Accounts
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 XVIII60
SCHEDULE OF TERMINATED CONTRACTS 61
SCHEDULE OF PROJECT VALUES 62
SCHEDULE OF ESTIMATED KILOWATTS SAVED 63
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Description of Reports or Statements
PROJECT INCOME STATEMENT 64-67
ORGANIZATIONAL STRUCTURE 68-70
SIGNATURE CLAUSE 71
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, 1994
COMPANY PROPERTY CURRENT PRIOR
COMPANY PROPERTY
121 Company Property (Schedule II) 64,858,957 66,964,571
107 Construction work in progress
(Schedule II) 12,686,281 13,934,563
Total Property 77,545,238 80,899,134
108 Less accumulated provision for
depreciation and amortization of
company property (Schedule III) 21,080,575 17,515,853
Net Company Property 56,464,663 63,383,281
INVESTMENTS
123 Investments in associate companies
(Schedule IV) 78,372,404 63,388,495
124 Other Investments (Schedule IV) 41,666,210 35,385,595
Total Investments 120,038,614 98,774,090
CURRENT AND ACCRUED ASSETS
131 Cash 1,107,667 603,791
134 Special deposits 198,202 103,627
135 Working funds 15,835 11,250
136 Temporary cash investments (Schedule IV)
141 Notes receivable and lease receivable 10,034,901 7,587,418
143 Accounts receivable (Schedule VI) 20,825,349 14,512,193
144 Accumulated provision for
uncollectible accounts (Schedule VII) (400,723) (316,986)
146 Accounts receivable from associate
companies (Schedule V and VI) 2,933
152 Fuel stock expenses undistributed
154 Materials and supplies 3,635,534 1,407,426
163 Stores expense undistributed
165 Prepayments 412,888 170,069
171 Interest receivable 414,806 546,021
174 Misc. current and accrued assets
(Schedule VIII) 104,842 47,369
Total Current and Accrued Assets 36,352,234 24,672,178
DEFERRED DEBITS
181 Unamortized debt expense 861,752 1,006,021
184 Clearing accounts
186 Miscellaneous deferred debits
(Schedule IX) 1,730,862 549,999
188 Research, development, or
demonstration expenditures
(Schedule X)
Total Deferred Debits 2,592,614 1,556,020
TOTAL ASSETS AND OTHER DEBITS 215,448,125 188,385,569
ANNUAL REPORT OF EUA Cogenex Corporation
SCHEDULE I - COMPARATIVE BALANCE SHEET
ACCOUNT LIABILITIES & PROPRIETARY CAPITAL
AS OF DECEMBER 31, 1994
CURRENT PRIOR
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI) 100 100
211 Miscellaneous paid-in-capital 33,528,598 28,650,811
(Schedule XI)
215 Appropriated retained earnings
(Schedule XI)
216 Unappropriated retained earnings 14,790,006 10,619,440
(Schedule XI)
Total Proprietary Capital 48,318,704 39,270,351
LONG-TERM DEBT
223 Advances from associate companies
(Schedule XII)
224 Other long-term debt
(Schedule XII) 119,200,000 120,000,000
225 Unamortized premium on long-term debt
226 Unamortized discount on long-term
debt-debt
Total Long-Term Debt 119,200,000 120,000,000
CURRENT AND ACCRUED LIABILITIES
224 Current Maturities of Long-term
debt (Schedule XII) 800,000
231 Notes payable 23,421,000 7,820,000
232 Accounts payable 5,221,212 5,989,421
233 Notes payable to associate
companies (Schedule XIII) 8,059,000 8,059,000
234 Accounts payable to associate
companies (Schedule XIII) 445,987 776,847
236 Taxes accrued 126,148 992,029
237 Interest accrued 2,652,165 1,132,269
238 Dividends declared
241 Tax collections payable (Refund) (22,383) 83,253
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 526,618 292,367
Total Current and Accrued
Liabilities 41,229,747 25,145,186
DEFERRED CREDITS
253 Other deferred credits 1,350,465 766,218
255 Accumulated deferred investment
tax credits
Total Deferred Credits 1,350,465 766,218
282 ACCUMULATED DEFERRED INCOME TAXES 5,349,209 3,203,814
TOTAL LIABILITIES &
PROPRIETARY CAPITAL 215,448,125 188,385,569
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1994
SCHEDULE II - COMPANY PROPERTY
BALANCE BALANCE
AT OTHER AT
BEGINNING ADDITIONS RETIREMENTS 1/ CLOSE
DESCRIPTION OF YEAR OR SALES CHANGES OF YEAR
COMPANY PROPERTY
Account
121 LEASEHOLD
IMPROVEMENTS 104,532 15,020 119,552
(A)
121 EQUIPMENT 2/ 45,652,730 7,347,483 (7,381,925) 39,404 45,657,692
121 OFFICE FURNITURE (B)
AND EQUIPMENT 1,602,357 389,486 (21,223) 1,970,620
121 AUTOMOBILES, OTHER
VEHICLES AND RELATED (C)
GARAGE EQUIPMENT 992,240 179,959 (141,842)(18,722) 1,011,585
301 ORGANIZATION 120,757 55,287 176,044
302 MISCELLANEOUS
303 INTANGIBLE PLANT 17,665,312 1,263,543 (3,839,108) 15,089,747
304 LAND AND LAND RIGHTS
305 STRUCTURES AND
IMPROVEMENTS 826,643 7,074 833,717
310 AIRCRAFT AND AIRPORT
EQUIPMENT
311 OTHER COMPANY
PROPERTY 3/
SUBTOTAL 66,964,571 9,257,852(11,362,875) (591)64,858,957
107 CONSTRUCTION WORK (D)
IN PROGRESS 4/ 13,934,563 18,812,016(15,625,665)(4,434,633) 12,686,281
TOTAL 80,899,134 28,069,868(26,988,540)(4,435,224) 77,545,238
(A) Expense Negative Plant
(B) Reversal of 12 94 Accrual
(C) Asset Reconcilation
(D) Transfer to Other Accounts
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1994
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:
NET BALANCE
SUBACCOUNT DESCRIPTION CHANGE AT CLOSE
OF YEAR
(1) Utility Load Reduction Programs 2,938,236 24,002,949
(2) Energy Management Programs (3,412,590) 15,194,701
(3) Packaged Cogeneration 204,875 5,346,415
(4) Energy Management Equipment 274,421 1,113,627
See Attachments A, B,
C, D, E, F, G and H
for detail of equipment by
project
TOTAL 4,962 45,657,692
3/ DESCRIBE OTHER COMPANY PROPERTY:
4/ DESCRIBE CONSTRUCTION WORK IN PROGRESS:
807 Eastman Kodak Co. 404,575
853 Hungarian Energy Services Co. 135,889
872 Duke Power Co. 198,937
907 Brant County Board of Education 228,446
932 Metropolitan - Tescor 2,291,639
966 RG&E Phase II 473,924
968 Bonneville Power Ad 372,349
987 Kodak Park Nova 227,437
995 BU Mechanical - 500 Comm Ave 208,822
1019 EUA Systems Operating Ctr 152,475
1042 Matsushita Electric Corp. 139,901
1048 HWD Service Corp. 208,462
1056 UPS - Patterson 265,018
1058 Hofstra University 208,726
1059 Canadian Postal Service 109,319
1066 Bank of New York 288,289
1074 Merck & Company 337,971
1075 The Trane Company 144,767
1102 Warner Technologies Dev. 112,065
1104 Genesee Hospital 133,849
Other Projects 2,644,233
Note to CWIP Reclass 3,399,188
Total CWIP 12,686,281
ANNUAL REPORT OF EUA COGENEX CORPORATION
SCHEDULE II - ATTACHMENT A
EQUIPMENT DETAILED BY PROJECT
Subaccount Description NET BALANCE
CHANGE AT CLOSE
OF YEAR
102 City of Lowell (2) -0- 31,705
108 City of Lawrence (2) (381,522) -0-
117 Oak Island Nursing Home (2) -0- 125,266
118 Sullivan County (2) -0- 301,402
123 City of Woonsocket (2) -0- 46,372
130 Jackson Brook Institute (2) -0- 280,899
145 Paul Revere (Mass Elect)(1) -0- 112,746
152 T.J. Maxx (2) -0- 653,487
157 Skytop (2) -0- 81,201
159 Parkwest Hotel (2) -0- 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) (78,657) -0-
172 Penn Pride Packaging (1) -0- 41,686
180 Meadowbrook East, Allentown PA (2) -0- 83,726
181 Cedar Crest College (2) -0- 137,754
212 West Seneca Development Ctr. (1) 1,826,181 4,379,908
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) 32,123 4,948,050
245 Edison Estates (2) -0- 51,550
246 Raratan Valley Community College (2) -0- 375,181
247 Lebanon Valley College (2) (270,010) -0-
259 National Office Supply (2) -0- 11,000
265 AT&T, Rochelle Park, NJ (2) (35,690) -0-
266 Automatic Machine (1) -0- 13,319
290 Dedham Holiday Inn (1) -0- 95,056
292 Somerset Vocational School (2) -0- 149,724
295 Carney Hospital (1) -0- 40,297
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
340 Star Market #108 (1) -0- 18,364
341 Star Market #138 (1) -0- 29,992
342 Star Market #102 (1) -0- 29,305
343 Star Market #112 (1) -0- 24,382
359 Guest Quarters-Waltham (1) -0- 232,869
364 Prince George (2) (963,751) -0-
382 Medical College (2) 4,500 1,383,856
383 Harvard School (2) -0- 587,186
Sub-Total 133,174 15,984,832
ANNUAL REPORT OF EUA COGENEX CORPORATION
SCHEDULE II - ATTACHMENT B
EQUIPMENT DETAILED BY PROJECT
BALANCE
Subaccount Description NET AT CLOSE
CHANGE OF YEAR
SUB-TOTAL FROM ATTACHMENT A 133,174 15,984,832
385 Robertwood Johnson
University Hospital (2) (141,666) 552,168
386 Warren Hospital (2) -0- 224,857
387 Camden City Mun. (2) (527,956) -0-
388 E. Penn Psych. (2) -0- 135,529
390 Bucks City College (2) -0- 236,984
391 Winterthur Museum (2) (123,600) -0-
393 Hackensack Medical Center (2) -0- 436,950
394 Keystone Jr. College (2) -0- 226,210
396 J.E. Baker (2) -0- 230,122
398 Star Market #118 (1) -0- 21,152
399 Star Market #136 (1) -0- 26,883
400 Star Market #141 (1) -0- 27,698
401 Star Market #120 (1) -0- 20,112
405 First Church (1) -0- 127,200
406 Guest Quarters (1) -0- 150,904
407 Star Market #119 (1) -0- 23,852
408 Star Market #106 (1) -0- 28,896
435 Alpha Industries (1) -0- 285,229
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) -0- 65,394
472 Ford Products (2) -0- 82,005
478 Murray School House Plaza (2) -0- 31,208
479 Murray Construction H.Q. (2) -0- 15,954
480 Becton Dickenson (2) -0- 77,213
481 Mountain Lake Tennis Club (2) (25,259) -0-
484 Borough of Freehold (2) -0- 86,730
487 Lafayette Mills (2) (40,775) -0-
488 Taylor Mills (2) -0- 46,310
489 Milford Brook (2) -0- 89,404
490 Pine Brook (2) -0- 73,581
491 Clark Mills School (2) -0- 52,324
492 Franklin Lakes (2) -0- 22,485
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
502 Club at Woodbridge (2) -0- 55,801
505 Werner Erhard & Associates (2) (135,000) -0-
Sub-Total (861,082) 19,711,887
ANNUAL REPORT OF EUA COGENEX CORPORATION
SCHEDULE II - ATTACHMENT C
EQUIPMENT DETAILED BY PROJECT
BALANCE
SUBACCOUNT DESCRIPTION NET AT CLOSE
CHANGE OF YEAR
SUB-TOTAL FROM ATTACHMENT B (861,082) 19,711,887
506 Beres Industries (2) -0- 30,809
507 Plymouth Lampson (2) -0- 13,856
508 Paper Mart, Inc. (2) -0- 76,648
511 Pavillion Towers (2) -0- 25,000
523 Polaroid Corporation (1) -0- 166,005
540 Bluebeard's Castle Hotel (2) (71,740) -0-
541 The Buckley School (1) -0- 54,535
542 The Italian Center (1) -0- 14,938
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. (1) -0- 9,985
551 Buckland, 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
561 Waterford Country School, Inc. (1) -0- 10,916
567 Davenport Realty Trust (1) (278) -0-
570 Pepsi-Cola Metropolitan Bottling Co. (1) -0- 655,132
583 Lahey Clinic (1) -0- 190,614
584 Orange County Community College (1) 5,000 753,214
593 Beall-Ladymon Corp. (2) -0- 35,015
595 Oak Nursing Home (1) -0- 51,472
605 Public Service of Colorado (2) (10,845) -0-
608 Town of Clarkstown (1) -0- 118,915
611 Boston University Phase I (1) 123,268 895,798
612 Watt Management Company (2) -0- 365,044
621 Albertus Magnus High School (1) -0- 116,188
634 Savings Oil Company, Inc. (2) -0- 35,771
635 Shelter Bay Company (2) -0- 13,019
636 Cannan Market (1) -0- 648
638 Huntington Lodge (2) -0- 6,340
639 Scandals Hair Design, Inc. (2) -0- 4,841
643 Instron Corporation (1) (36,010) -0-
645 Toshiba America (2) -0- 94,365
648 Country Grocer (1) -0- 14,837
649 Tobin, Leven, Carberry & O'Malley (1) -0- 8,825
651 Nejamie's Store (1) -0- 8,574
652 Springfield Olympia (1) -0- 23,347
653 Stadium Systems (1) -0- 17,770
SUB-TOTAL (851,687) 23,838,418
ANNUAL REPORT OF EUA COGENEX CORPORATION
SCHEDULE II - ATTACHMENT D
EQUIPMENT DETAILED BY PROJECT
BALANCE
SUBACCOUNT DESCRIPTION NET AT CLOSE
CHANGE OF YEAR
SUB-TOTAL FROM ATTACHMENT C (851,687) 23,838,418
655 DOE Bldg - Lighting Upgrade (1) 68,038 868,407
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 I (1) -0- 311,535
670 U.S. Post Office, Stm. Inc. (1) (10,866) -0-
673 Bel Air Markets (2) -0- 36,896
676 Dominican Convent (1) -0- 173,305
677 Central Berkshire School District (1) -0- 133,762
680 Closter Board of Education (1) -0- 119,364
681 New Lebanon Central School Dist. (1) -0- 63,681
682 Cavellero Plastics, Inc. (1) -0- 15,206
684 North Rockland Central School
Dist. (1) (1,000,086) 7,723
687 Vanier Graphics (2) -0- 33,091
693 Auburn Journal (2) -0- 26,511
696 MEM Company (1) -0- 223,751
700 Palm Beach Gardens (2) (218,284) -0-
707 60 Craig Road Investors (1) -0- 48,333
708 Materials Research Corporation (1) -0- 152,788
752 Henry Mayo hospital (2) -0- 151,957
753 Hillhaven Corp d/b/a Franklin House (2) -0- 13,250
757 Nordstroms - Dan Diego (2) -0- 38,609
758 Shisheido America, Inc. (1) 379 73,351
759 Chester Union Free School District (1) -0- 166,435
762 USA Dept. Navy (2) (948,905) -0-
763 Com/Elec - All Projects (1) -0- 5,815,525
764 Mount Vernon Hospital (1) -0- 132,750
776 Brownwell Boat Works (2) -0- 24,984
777 Barnert Hospital (1) 1,184 181,375
781 Sandoval County (2) -0- 31,602
783 1560 Broadway (1) (167,709) 150,454
784 Northshore Medical & Dental Center (2) -0- 40,929
789 Hebrew Academy (2) -0- 123,896
795 One Wells Avenue Associates (1) -0- 149,273
798 Kurt Saracen (1) 26 -0-
800 145 Rosemary Street Realty Management (1) -0- 60,774
803 Berlin School District (2) 2,060 79,438
804 Arthur Blank & Company, Inc. (1) 17 -0-
806 Nanuet Public Schools (1) -0- 251,803
SUB-TOTAL (3,125,833) 33,674,037
ANNUAL REPORT OF EUA COGENEX CORPORATION
SCHEDULE II - ATTACHMENT E
EQUIPMENT DETAILED BY PROJECT
BALANCE
SUBACCOUNT DESCRIPTION NET AT CLOSE
CHANGE OF YEAR
SUB-TOTAL FROM ATTACHMENT D (3,125,833) 33,674,037
811 Hornick (1) 3,946 179,261
812 United Nations International School (1) (35,521) -0-
817 Materials Rsrch - Amd (1) 3,747 3,747
819 Metro Park Associates, L.P. (2) -0- 69,524
821 St. Lukes Hospital (1) 221,684 221,684
833 Kentucky Fried Chicken (2) -0- 60,898
834 Washboard Laundries (2) -0- 56,156
843 Nihonmachi Terrace (3) -0- 225,613
850 Churchill Crossing (2) -0- 79,594
854 400 Atlantic Avenue (2) (5,592) 86,443
855 Inglewood Civic Plaza - 101 N.LaBrea (2) -0- 60,050
856 Inglewood LaBrea Associates -
111 N. LaBrea (2) -0- 114,232
857 Arsenal Mall/Watertown Arsenal
Associates (2) 3,488 43,540
858 Greendale Mall/New England
Development (2) (248,759) -0-
859 VA Hospital-Dept. of Veteran
Affairs (2) 39,340 -0-
861 Fort McPherson/Fort Gillen (2) 82,734 1,684,360
862 Mobile Airport Authority (2) -0- 172,909
868 UPS (1) 16,143 516,828
870 Whitehall (Cape Island) NH (2) 945 15,815
871 Orange County Community College P (1) 325,077 325,077
874 Grand Tokyo USA, Inc. (2) -0- 84,106
879 Star Market #110 (1) -0- 19,360
880 Star Market #126 (1) -0- 29,361
881 Star Market #113 (1) -0- 23,950
885 Revere High School (2) -0- 733
889 Golten Marine Co., Inc. (3) 172,752 172,752
891 400 Elmwood Associates (2) 21,736 173,736
894 HTT - Bayshore Medical Center (2) (13,928) 92
901 Blount I - Board of Education (2) 38 -0-
911 Southmore Medical Center (2) -0- 46
915 Briarwood One Limited Partnership (2) -0- 146,232
922 Barry University (2) 188,236 1,457,184
926 Methodist Hospital (2) 717,613 717,613
938 Presidential Towers (2) 79,274 79,274
940 Feenan financial Group (2) 645 13,543
947 HTI - Detar Hospital (2) 18,213 18,259
955 Ideal Aluminum Products, Inc. (1) 294,284 294,284
971 BU 3-5 Cummington Ave (1) 82,324 82,324
994 New England Medical Center - Exits (2) 27,814 27,814
1022 Gleneagles Country Club, Inc. (1) 31,135 31,135
SUB-TOTAL (1,098,465) 40,961,566
ANNUAL REPORT OF EUA COGENEX CORPORATION
SCHEDULE II - ATTACHMENT E
EQUIPMENT DETAILED BY PROJECT
BALANCE
SUBACCOUNT DESCRIPTION NET AT CLOSE
CHANGE OF YEAR
SUB-TOTAL FROM ATTACHMENT D (1,098,465) 40,961,566
EUA Nova (4) 70,986 429,907
EUA Day (4) 203,435 683,720
Con Edison (1) 1,186,273 2,939,443
CES Way (2) (357,267) 643,056
TOTAL 4,962 45,657,692
(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, 1994
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF COMPANY PROPERTY
ADDITIONS
DESCRIPTION CHARGED
BALANCE TO OTHER
AT ACCTS CHANGES BALANCE
BEGINNING 403, RETIRE ADD 1/ AT CLOSE
OF YEAR 405 & 417 MENTS (DEDUCT) OF YEAR
ACCOUNTS
111 ORGANIZATION 120,758 120,758
111 MISCELLANEOUS (A)
INTANGIBLE PLANT 2,358,270 1,311,912 (1,162,474) 2,507,708
122 LEASEHOLD (B)
IMPROVEMENTS 24,473 20,109 22,386 66,968
(C)
122 EQUIPMENT 13,648,010 5,292,935 (2,601,431) 179,963 16,519,477
122 OFFICE FURNITURE
AND FIXTURES 775,356 360,977 1,136,333
122 AUTOMOBILES,
OTHER VEHICLES
VEHICLES AND
RELATED GARAGE (D)
EQUIPMENT 528,026 128,935 (93,105) 86,358 650,214
304 LAND AND LAND
RIGHTS
305 STRUCTURES AND
IMPROVEMENTS 60,960 18,157 79,117
310 AIRCRAFT AND
AIRPORT EQUIPMENT
311 OTHER COMPANY
PROPERTY
17,515,853 7,133,025 (2,694,536) (873,767) 21,080,575
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
(A)NOVA Goodwill Adjustment 69,646
Record ESS Diversco Gain 1,165,828
(B)Reconcile Fiscal Assets
(C)Transfer to Various Accounts
(D)12,210 AID 0 Debit to Prepaid Sales
26,537 Cap of Transportation
Amounts Corresponding to Debits to Auto Asset Accounts
ANNUAL REPORT OF EUA Cogenex Corporation
For the Year Ended December 31, 1994
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.
BALANCE AT BALANCE
DESCRIPTION BEGINNING AT CLOSE
OF YEAR OF YEAR
ACCOUNT 123 - INVESTMENT IN SUBSIDIARY
COMPANIES
Investments in Subsidiary Companies
Micro Utility, L.P. 3,610,051 2,810,486
EUA/Highland Energy Group 2,015,151 2,035,034
EUA WestCoast, L.P. 21,441,388 19,872,024
EUA/FRCII Energy Associates 16,417,613 15,829,182
EUA/ICC Partners, L.P. 126,077 (15,535)
Energy Capital & Services I & II 19,778,215 24,988,195
Northeast Energy Management 12,852,920
EUA Canada 100
Total Equity 63,388,495 78,372,406
Investment
ACCOUNT 124 - OTHER INVESTMENTS
Notes Receivable
Lebanon Valley College 0 212,000
Greater Lawrence Sanitation 47,951 19,951
Sycom Enterprises 3,408,671 2,901,671
Columbia University 6,016,321 6,060,788
MA Institute of Technology Phase II 2,984,550 2,984,550
Interfaith Medical - Large 1,129,000 1,059,000
Boston University Phase II 805,590 565,590
Eastman Kodak 3,161,734 4,957,707
Sycom - Pepco 159,040 542,241
Veterans Association Hospital 4,293,571 1,159,021
Jewish Federation Council 55,790 22,790
Boston Edison DSM Notes 10,896,538 10,696,537
Enersave, Inc. 0 1,956,297
Sheraton - Washington 0 882,734
N. Rockland Central School 0 1,380,000
ANNUAL REPORT OF EUA Cogenex Corporation
For the Year Ended December 31, 1994
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.
BALANCE AT BALANCE
DESCRIPTION BEGINNING AT CLOSE
OF YEAR OF YEAR
ACCOUNT 124 - OTHER INVESTMENTS
Notes Receivable
USA Department of Navy 0 540,000
Metropolitan Square 0 498,051
New England Development 0 100,000
LaSalle Military Academy 0 130,000
Southmore Medical 0 161,000
Wareham Schools 0 250,000
Kessler Institute 0 592,386
Boston University Bookstore 0 79,545
KAO Info Systems 0 120,000
HTI - Midway Park 0 73,000
Harry J. Rashti & Company 0 135,583
BU - 140 Baystate Road 0 84,784
HTI - Ashley Valley 0 66,000
HTI - Castle View 0 38,000
Total Notes 33,868,671 38,269,229
Receivable
ACCOUNT 124 - OTHER INVESTMENTS
Long Term Lease Receivable
Miscellaneous -0- -0-
MA Institute of Technology Phase I & II -0- -0-
Modicon 8,165 -0-
Columbia University -0- -0-
Boston University Phase II -0- -0-
Broadway Trade Center 78,135 -0-
Portsmouth City Schools 677,181 367,008
White Memorial Medical Center 403,611 311,632
ANNUAL REPORT OF EUA Cogenex Corporation
For the Year Ended December 31, 1994
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.
BALANCE AT BALANCE
DESCRIPTION BEGINNING AT CLOSE
OF YEAR OF YEAR
ACCOUNT 124 - OTHER INVESTMENTS
(Continued)
Long Term Lease Receivable
Diagnostic Center Hospital 87,737 0
Bayshore Medical Center 124,518 0
Brownwood Regional Hospital 137,577 0
HTI - Chino Community Hospital 0 89,840
HTI - Couglas Community Hospital 0 62,194
HTI - Palm Desert Hospital 0 48,859
HTI - Healdsburg Hospital 0 31,508
Total Long Term Lease Receivable 1,516,924 911,041
Other Investments
Energy Capital & Services I - Int Purchase 0 1,132,875
Energy Capital & Services II- Int Purchase 0 1,353,065
Total Other Investments 0 2,485,940
Total Long-Term Lease Receivables and
Other Investments 35,385,595 41,666,210
TOTAL INVESTMENTS 98,774,090 120,038,614
ANNUAL REPORT OF EUA Cogenex Corporation
For the Year Ended December 31, 1994
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable.
BALANCE AT BALANCE AT
DESCRIPTION CLOSE BEGINNING
OF YEAR OF YEAR
ACCOUNT 146 - ACCOUNTS
RECEIVABLE
Eastern Utilities Associates 292 -0-
EUA Service Corporation -0- -0-
EUA Northeast Energy Management 2,641 -0-
TOTAL 2,933 -0-
ANNUAL REPORT OF EUA Cogenex Corporation
For the Year Ended December 31, 1994
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 6,879,302 5,837,972
31 - 60 Days 2,393,360 3,242,890
62 - 90 Days 1,514,369 2,423,866
91 - over 3,725,162 9,320,621
______________ ______________
Total 14,512,193 20,825,249
Account 146 - Accounts Receivable
from associated companies
0 - 30 Days -0- 2,933
Total -0- 2,933
ANNUAL REPORT OF EUA Cogenex Corporation
For the Year Ended December 31, 1994
SCHEDULE VII ACCUMULATED PROVISION FOR UNCOLLECTABLE ACCOUNTS
INSTRUCTIONS: Complete the following analysis of accumulated provision
for uncollectible accounts receivable.
CURRENT YEAR
BALANCE AT PROVISIONS WRITE- BALANCE
BEGINNING OFF AT
DESCRIPTION OF CLOSE OF
YEAR YEAR
Account 144 - Provision for 316,986 325,422 (241,685) 400,723
uncollectible account __________ _________ _______ _________
TOTAL 316,986 325,422 (241,685) 400,723
ANNUAL REPORT OF EUA Cogenex Corporation
For the Year Ended December 31, 1994
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.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE
OF YEAR OF YEAR
ACCOUNT 174 - MISCELLANEOUS
CURRENT AND ACCRUED ASSETS
Executive Life Insurance 47,369 104,842
TOTAL 47,369 104,842
ANNUAL REPORT OF EUA Cogenex Corporation
For the Year Ended December 31, 1994
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 numbe of items in
each class.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE
OF YEAR OF YEAR
ACCOUNT 186 - MISCELLANEOUS DEFERRED
DEBITS
EUA/Beacon 51,220 0
Sycom 44,906 48,683
50/50 SEC Ruling 81,575 83,937
EUA WestCoast Reorganization 132,627 397,083
EUA Day - Costs in Excess of Billing 132,077 0
EUA/Electricity Supply Board 60,538 0
Measuring & Monitoring Advance 10,778 26,402
EUA Day - Interco A/P ADJ (DEC94) 0 22,074
Formation of Canadian Subsidiary 13,851 54,970
Thorson GMC Buick 0 43,606
Nova - Various 0 19,062
EC&S I & II - Mwe Legal 0 36,121
Coumbia University 0 316,529
Rent 0 25,753
Open Work Authorizations 0 363,313
Sanwa 0 281,079
Miscellaneous (29) 22,427 12,250
TOTAL 549,999 1,730,862
ANNUAL REPORT OF EUA Cogenex Corporation
For the Year Ended December 31, 1994
SCHEDULE XI - PROPRIETARY CAPITAL
CLASS OF STOCK NUMBER OF PAR OR
ACCOUNT SHARES STATED OUTSTANDING CLOSE OF PERIOD
NUMBER AUTHORIZED VALUE PER
SHARE NO. OF SHARES TOTAL
AMOUNT
201 COMMON STOCK ISSUED 1,000 $0.10 1,000 $100.00
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 33,528,598
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS
(1) See Schedule XIV Notes to Financial Statements,Page 28
TOTAL 33,528,598
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
dividend, date declared and date paid.
BALANCE AT NET BALANCE AT
DESCRIPTION BEGINNING INCOME OR DIVIDENDS CLOSE
OF YEAR (LOSS) PAID OF YEAR
ACCOUNT 216 - UNAPPROPRIATED
RETAINED
EARNINGS 10,619,440 4,170,566 14,790,006
TOTAL 10,619,440 4,170,566 14,790,006
Annual Report of EUA Cogenex Corporation
For the Year Ended December 31, 1994
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>
<CAPTION>
TERMS OF DATE AMOUNT BALANCE 1/ BALANCE
NAME OF OBLIG OF INT. AMORT- AT ADDI- DEDUC- AT
CREDITOR CLASS & MATURITY RATE IZED BEGINNING TIONS TIONS CLOSE OF
SERIES OF YEAR YEAR
OF
OBLIGATION
<S> <C> <C> <C> <C> <C> <C> <C>
ACCOUNT 223-
ADVANCES
FROM
PARENT AND
ASSOCIATE
COMPANIES
ACCOUNT 224- Unsecured
OTHER LONG Notes
TERM DEBT: to 09/03/97 7.22% 15,000,000 15,000,000 15,000,000
Prudential
Ins. Co. of
America &
PRUCO
Life Ins.
Co.
Unsecured
Notes
to 10/30/01 19.6% 20,000,000 20,000,000 800,000 19,200,000
Prudential
Ins. Co. of
America &
PRUCO
Life Ins.
Co.
Unsecured
Notes 06/30/05 10.56% 35,000,000 35,000,000 35,000,000
to Prudential
Ins. Co. of
America
Unsecured
Notes
to qualified 09/15/00 7.0% 50,000,000 50,000,000 50,000,000
institutional
buyers
under Rule
144A
of the 1993
Act
TOTAL 120,000,000 120,000,000 800,000 119,200,000
</TABLE>
1/ GIVE AN EXPLANATION OF DEDUCTIONS:
1st Principal Payment Due
ANNUAL REPORT OF EUA Cogenex Corporation
For the Year Ended December 31, 1994
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.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE
OF YEAR OF YEAR
ACCOUNT 233 - NOTES PAYABLE TO
ASSOCIATE COMPANIES
Eastern Utilities Associates 8,059,000 8,059,000
TOTAL 8,059,000 8,059,000
ACCOUNT 234 - ACCOUNTS PAYABLE TO
ASSOCIATE COMPANIES
Eastern Utilities Associates 26,981 52,112
EUA Service Corporation 746,743 393,712
Eastern Edison Company 1,717 63
Newport Electric Corporation 1,406 0
EUA Canada 0 100
TOTAL 776,847 445,987
ACCOUNT 242 - MISCELLANEOUS CURRENT
AND ACCRUED LIABILITIES
Commitment Fee 7,928 9,678
Pension Liability 42,236 0
Retainage Liability 129,466 322,665
Restricted Stock Plan 10,000 0
EUA Nova (200,000) 0
Lease Obligations - AT&T 13,980 1,113
401K Savings 149,017 0
Accrued Payroll 40,062 0
Billing in excess of cost 75,038 0
Miscellaneous (9) 24,640 18,775
Accrued Liability - Sanwa (HTI PRJS) 0 77,032
Accrued Liability - Sanwa (VA Hosp) 0 22,657
Trade Financing Payable 0 74,697
EUA Day 2420-10 0 11,597
Flexible spending 0 24,640
TOTAL 292,367 526,617
ANNUAL REPORT OF EUA Cogenex Corporation
For the Year Ended December 31, 1994
SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES- (Continued)
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.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE
OF YEAR OF YEAR
ACCOUNT 224 - CURRENT MATURITIES OF LT DEBT
Prudential Ins Co Due 10/30/01 @ 9.6% 0 800,000
TOTAL 0 800,000
EUA Cogenex Corporation
Notes To Financial Statements
For The Years December 31, 1994 and 1993
A. General
EUA Cogenex Corporation (the Company) is an energy services
company which designs, installs, fabricates, and finances
energy savings project 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 financings and asset acquisitions. On
February 15, 1995, the SEC issued an order lifting its
previous requirement that the Company earn more than 50% of
its revenues in the New England and New York area. There
are no current geographic restrictions on the Company's
operation.
The prices charged by the Company to its Energy Management
Services and Utility Demand Side Management Program
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.
B. Summary of Significant Accounting Policies
Equity Investment
The financial statements reflect the company's investments
in seven partnership entities and one subsidiary Company
under the equity method of accounting. These amounts are
shown on the company's balance sheet at December 31, 1994
and 1993 as investments in associated companies.
Reclassification
Certain prior period amounts on the consolidated financial
statements have been reclassified to conform with current
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 $1,271,000 in
1994 and $957,000 in 1993 and paid office rental expense of
approximately $14,600 and $11,000, 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 term. Revenue is recognized as such savings
are realized by customers. Construction and
installation costs are amortized as contract expenses
on a straight-line basis over the applicable contract
term. Losses on contracts are fully recognized 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.
Energy Savings Project Sales and Sales-Type Leases
Revenue from the sale of energy savings projects
and sales-type leases are recognized when the sales are
complete. 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.
Interest Income
Interest income from notes receivable is recorded
on the accrual basis over the term of the note.
Inventories
Inventories represent finished goods and 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, which 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 and projects in progress,
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 approximately $6.8 million
and $6.3 million in 1994 and 1993, respectively.
Federal Income Taxes
In accordance with 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.
C. Acquisitions
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 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 of
interest method of accounting.
In connection with NEM's acquisition, the Company incurred
costs and expenses of approximately $157,000 and $308,000
during 1994 and 1993. Accordingly these costs and expenses
have been charged against operations when incurred.
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.
The acquisition of Day Company was accounted for using the
purchase method of accounting. This acquisition resulted
in the recognition of goodwill of approximately $2.5 million
which is being amortized over 15 years.
In 1994, the Company organized a wholly-owned Canadian
subsidiary to engage in the energy services business in the
Canadian marketplace. At December 31, 1994, the Company has
invested approximately $2.3 million in Canadian projects.
On March 1, 1995, the Company acquired certain energy
services assets of Citizens Conservation Corporation of
Boston, Massachusetts in exchange for preferred stock of a
newly formed subsidiary of the Company, EUA Citizens
Conservation Services (CCS), which will utilize those
assets. The largest assets the Company obtained with the
Citizens Conservation acquisition are contracts with various
public and private housing authorities.
The Company has also applied for authorization from the SEC
to acquire the Highland Energy Group, an energy services
company in Boulder, Colorado in exchange for common shares
of EUA. Highland manages conservation and energy management
programs in Colorado, Texas, Ohio and North Carolina. The
Company has signed a Letter of Intent and anticipates
signing a merger agreement by the end of April 1995.
D. Income Taxes
Components of income tax expense for the year 1994 and 1993
are as follows:
In Thousands 1994 1993
Federal:
Current $ (64) $ 1,440
Deferred 1,951 227
$ 2,260 $ 1,667
State:
Current 156 523
Deferred 186 137
$ 342 $ 660
Provision for income taxes $ 2,229 $ 2,327
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 1994 1993
Federal income tax computed
at statutory rates $ 1,741 $ 2,052
Increases (decreases) in tax from:
state taxes, net of federal
income tax benefit 424 429
Other 64 (154)
Provision for income taxes $ 2,229 $ 2,327
The provision for deferred taxes resulting from temporary
differences are comprised of the following:
In Thousands 1994 1993
Excess tax depreciation $ 25 $ 1,015
Effect of state and local taxes 20 137
Partnership timing differences 1,621 54
Provision for Partnership contract losses 738 (738)
Other -Net 267 (104)
Total $ 2,137 $ 364
The Company adopted FASB statement No. 109 (FAS109),
"Accounting for Income Taxes" effective as of January 1993.
Under FAS109 deferred tax liabilities or assets are computed
using the tax rates that will be in effect when the
temporary differences reverse. The adoption of FAS109 had
no impact on the results of operations for 1993.
At December 31, 1994 and 1993, total deferred tax assets for
which no valuation allowance was deemed necessary were $1.0
million and $1.6 million, respectively and total deferred
tax liabilities were $6.4 million and $4.8 million,
respectively. Total deferred tax assets and liabilities are
comprised as follows (in thousands):
Deferred Tax Deferred Tax
Assets Liabilities
1994 1993 1994 1993
Provision for Plant Related
Partnership Differences $6,303 $4,775
Contract Losses $ $738 Post-Retirement
Alternative Benefits 41 42
Minimum Tax 177 177 Other 54 14
Bad Debts 162 145
Pension 517 349
Other 192 218
Total $ 1,048$ 1,627 $ 6,398 $4,831
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 agreements with contractors
and/or host customers to finance the installation of energy
savings project equipment at the customer's premises. Upon
completion of construction, these contracts are reflected as
notes receivables on the Company's financial statements.
Interest income is accrued on these contracts based on the
stated or implicit interest rate within each contract
ranging from 7.7% to 18.0%. The term of the contracts range
in maturity from two years to fifteen years.
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.
The components of the net investment in sales-type leases
are as follows (in thousands):
1994 1993
Minimum lease payments receivable $ 11,167 $ 6,189
Less:Unearned interest 3,251 1,361
Current portion 1,787 1,176
Net investment in sales-type leases $ 6,129 $ 3,652
Future minimum lease payments due under sales-type leases at
December 31, 1994 are as follows (in thousands):
1995 $ 1,821
1996 1,789
1997 1,499
1998 1,334
1999 and thereafter 4,724
G. Contract Rights
Contract rights represent the cost of the Company's
acquisition of certain energy savings contracts. 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.
H. Long-Term Debt (in thousands)
1994 1993
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 50,000
Interest only payable through
September 15, 2000 with a final
payment of the entire note
due at that time.
Total 120,000 120,000
Less Current Maturities 800 -0-
$119,200 $120,000
Scheduled maturities of long-term debt for the five years
following 1994 are as follows (in thousands):
1995 $ 800
1996 6,700
1997 21,700
1998 6,700
1999 6,700
The Company is subject to certain covenants within the long-
term note agreements. 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, 1994.
In addition, in connection with the Company's 7.2% 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, 1994.
I. Notes Payable
The EUA System companies, which include the Company,
maintain short-term lines of credit with various banks
aggregating approximately $150 million of which $100 million
is available to the Company. At December 31, 1994, unused
short-term lines of credit amounted to $118 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, 1994 and 1993, the Company had approximately
$23.4 million and $7.8 million, respectively in borrowings
outstanding under these arrangements at weighted average
interest rates of 4.6% and 3.7%, respectively. In addition,
the Company had $8.1 million in borrowings from EUA at
December 31, 1994 and 1993.
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 due to 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, 1994 are as follows (dollars in
thousands):
Carrying Fair
Amount Value
Cash and Cash Equivalents $ 1,322 $ 1,322
Notes Receivable and Net
Investment in Sales-Type
Leases $ 39,180 $ 39,180
Long-Term Debt (including
current maturities) $ 120,000 $117,906
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 1994 and in 1993
included the following components (in thousands):
1994 1993
Service cost-benefits earned
during the period $ 377 $ 224
Interest cost on projected
benefit obligation 301 283
Actual return on assets 26 (352)
Net amortization and deferrals (206) 158
Net periodic pension
expense $ 498 $ 313
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 1994 and
1993 were 7.25% and 8.75% and 4.75% and 6.0%, respectively.
The expected long-term rate of return on plan assets were
9.50% and 10.0% in 1994 and 1993, respectively.
The discount rate used to determine pension cost was changed
effective January 1, 1995 to 8.25% and was used to calculate
the plans' funded status at December 31, 1994.
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, 1994 and 1993
expenses related to the supplemental plan were approximately
$41,200 and $107,000, respectively.
Post Retirement Benefits Other than Pension
Certain retired employees are entitled to participate in
health care and 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 costs amounted to
approximately $162,000 in 1994 and $126,000 in 1993.
The total cost of post-retirement benefits other than
pension for 1994 and 1993 includes the following components
(in thousands):
1994 1993
Service cost $ 150 $ 121
Interest cost 78 81
Actual return of plan assets (7) (4)
Amortization of transition obligation 43 41
Other amortizations and deferrals-net (6) 1
Total post-retirement benefit cost $ 258 $ 240
1994 1993
Assumptions:
Discount rate 7.25% 8.75%
Health care cost trend rate -near-term 13.0% 13.0%
-long-term 5.0% 6.25%
Salary increase rate 4.75% 6.00%
Rate of return on plan assets - non-union 5.50% 5.50%
Reconciliation of funded status:
Accumulated post-retirement benefit obligation (APBO):
Retirees $ (136) $ (33)
Active employees fully eligible for benefits 0 (202)
Other active employees (440) (500)
Total (576) (735)
Fair value of assets, primarily notes and bonds257 165
Unrecognized transition obligation 462 488
Unrecognized net loss (gain) (270) 62
(Accrued)/prepaid post-retirement benefit cost$ (127) $ (20)
The discount rate used to determine post-retirement benefit
costs was changed effective January 1, 1995 to 8.25% and was
used to calculate the funded status of post-retirement
benefits at December 31, 1994.
Increasing the assumed health care cost trend rate by 1%
each year would increase the total post-retirement benefit
cost for 1994 by approximately $50,000 and increase the
total accumulated post-retirement benefit obligation by
approximately $124,000.
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 $94,000 and $167,000 during 1994 and
1993, respectively.
Post-Employment Benefits
In November 1992 the FASB issued statement No. 112
"Employer's Accounting for Post-Employment Benefits" for
fiscal years beginning after December 15, 1993. The
estimated impact of this standard on the Company is
immaterial to the Companys' results of operations and
therefore no liability was recorded.
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):
1995 $ 683
1996 486
1997 394
1998 138
1999 16
$ 1,717
Total rent expense under the operating leases was $601,500 and
$473,400 in 1994 and 1993, respectively.
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.
The total amount of outstanding letters of credit and
performance bonds as of December 31, 1994 was approximately
$1.7 million and $6.7 million, respectively, and as of
December 31, 1993 were approximately $3.6 million and $7.3
million, respectively.
As of December 31, 1994, 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 WestCoast L.P.
("WestCoast") has under development a cogeneration facility
of approximately 1.5 MW. This facility has experienced
numerous start-up delays and cost overruns. As of December
31, 1994, WestCoast's investment in the plant was
approximately $5,200,000. The host of the facility has
taken the position that the energy services agreement
between WestCoast and itself is terminated due to, among
other reasons, failure to complete the project. WestCoast
disagrees with this position, but is attempting to negotiate
a new energy services agreement with the host. In addition,
WestCoast is making certain modifications to the
cogeneration plant that would complete the plant. However,
the Company can give no assurances as to when, if ever, the
plant will be completed, or whether it will be able to enter
into a new contract with the host under terms sufficient to
recover its investment. In June, 1993, WestCoast filed a
lawsuit against the contractors responsible for the design
and construction of the facility, as well as against the
surety on the contractor's performance bond. Certain
defendants in that action have filed cross-complaints
against WestCoast and the Company, seeking among other
things, approximately $300,000 for payments withheld by
WestCoast for the contractor's deficient performance. A
contractor has also filed a cross-complaint against the
host. This litigation has been stayed until April 7, 1995
to provide WestCoast an opportunity to complete the plant
and enter into a new energy services agreement with the
host. The Company does not expect that the plant will be
completed, or a new agreement reached, by that date. The
Company continues to review its investment in the
cogeneration plant and its litigation alternatives. While
the Company cannot predict the ultimate resolution of the
matter, it is possible that the Company's investment may not
be fully recovered. Except to the extent that any provision
for impairment of its investment would impact then current
earnings, the Company does not believe that any impairment
will have a material adverse impact on its financial
position.
Other
Under the terms of the Stock Purchase Agreement between the
Company and New England Sun Control, 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, 1994, the second year of the earn out bonus
period, the seller has earned approximately $400,000 which
was paid in 1994.
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.
As of December 31, 1994, no additional earn out payout has
been earned and accordingly no accrual has been recorded.
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1994
SCHEDULE XV - STATEMENT OF INCOME
ACCOUNT DESCRIPTION CURRENT YEAR PRIOR YEAR
INCOME
415 Sales 20,064,607 13,997,257
417 Project Revenues 37,828,629 37,311,449
418 Equity in earnings 1,233,328 (2,831,043)
419/421/450 Miscellaneous income 12,840,707 10,653,145
TOTAL 71,967,271 59,130,808
EXPENSE
904 Uncollectible accounts 355,817 203,319
910 Misc Cust Serv & Info expense 46,272 -0-
912 Demonstrating and selling expense 251,900 294,059
913 Advertising expense-merchandising 49,078 114,908
920 Salaries and wages 5,821,103 4,895,157
921 Office supplies and expenses 1,845,384 1,153,156
922 Administrative expense
transferred-(credit) (226,796) (210,203)
923 Outside services employed 1,053,186 934,907
924 Property insurance 311,580 259,611
925 Injuries and damages 164,913 74,625
926 Employee pensions and benefits 1,351,263 712,064
927 Franchise Requirements 639 0
928 Regulatory commission expense (500) 85
930.1 General advertising expenses -0- -0-
930.2 Miscellaneous general expenses 25,148 183,871
931 Rents 603,928 461,178
935 Maintenance of structures and
equipment 24,668 66,279
403/405 Depreciation and amortization
expense 989,623 683,633
408.1 Taxes other than income taxes 659,298 458,960
409.1 Income taxes (credit) 91,251 1,963,363
410.1 Provision for deferred income
taxes 2,138,136 364,335
411.1 Provision for deferred income
taxes-credit (548) -0-
416 Cost of goods sold 13,193,734 9,022,278
417.1 Expenses nonutility operations 27,526,438 25,221,739
421.2 Loss-disposition of property 92,511 157,702
426.1 Donations 550 7,640
426.3 Penalties 3,286 1,872
426.5 Other deductions 158,233 308,468
427 Interest on long-term debt 10,199,004 7,461,097
428 Amortization of debt disc. and
expenses 151,537 45,664
430 Interest on debt to associated
Companies 372,269 399,715
431 Other interest expense 1,068,884 1,247,914
432 Capitalized interest (credit) (525,083) (892,444)
Total Expense 67,796,706 55,594,952
Net Income 4,170,565 3,535,856
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1994
ANALYSIS OF BILLINGS
SALES & PROJECT REVENUES
ACCOUNTS 415/417
EXCESS
DESCRIPTION TOTAL COST OR TOTAL
DEFICIENCY AMOUNT
1. Utility Load Reduction
Programs 19,425,996
2. Energy Management
Programs 37,296,213
3. Packaged Cogeneration 1,171,026
TOTAL 57,893,236
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 Consolidated Billings by
Geographical Area:
New England and New York 43,083,795
Outside New England and New York 24,447,095
67,530,890
(A) Includes Northeast Energy Management, Inc. and
partnership revenues of $2,966,935 and $18,387,380 respectively.
(B) Excludes cogeneration revenue of $11,716,660.
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1994
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 Partners 458,600
EUA/Highland Energy Group 153,060
EUA/Onsite 2,132,393
EUA/FRCII Energy Associates 1,297,876
EUA/ICC Partners, L.P. 95,018
Energy Capital & Services I & II 1,508,908
NEMI 54,159
1120 Vermont Avenue 84,564
B.U. Bookstore 6,269
Bank of New York 50,000
Bayshore Medical 6,483
BECO Projects 986,453
Blount County 25,547
Boston University - Phase 2 77,952
Broadway Trade 10,859
Brownwood Regional 7,305
Columbia University 39,302
Department of Navy Resale 24,407
Diagnostic Center 5,032
Eastman Kodak 629,987
Enersave PSE&G 21,720
Greater Lawrence Sanitation 8,865
Health Trust, Inc. 7,022
Interfaith Hospital 94,807
Jewish Federation 5,856
KAO Systems 7,732
Kessler Institute 36,906
La Salle Military Academy 5,848
Lebanon Valley 10,597
Metro Square 8,178
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1994
ANALYSIS OF MISCELLANEOUS INCOME
INTEREST INCOME AND OTHER INCOME (Continued)
DESCRIPTION OF ITEMS AMOUNTS
Massachusetts Institute of Technology 362,410
N. Rockland School District 67,894
Portsmouth City Schools 54,234
Rochester Gas & Electric (69,332)
Sheraton Washington 17,640
Southmore Medical 19,358
Sunbelt Regional 7,334
Sycom Enterprises 626,685
Sycom - Pepco 101,465
Veterans Association Hospital 269,361
Wareham Schools 11,397
Washington Sheraton 17,640
White Memorial Medical Center 37,447
Miscellaneous (under $5,00 each) 45,372
Total Interest Income 9,430,690
Finance Fees
Enersave PSE&G 203,764
Energy Capital & Services I & II 4,576
EUA WestCoast 20,720
Sycom 8,496
EUA/Highland 823
Total Finance Fees 238,399
ACCOUNT 421.0 - MISCELLANEOUS NON-OPERATING INCOME
Management Fees 269,776
Accounting Fees 120,000
Maintenance Fees 239,809
Engineering/Labor Fees 1,563,058
Customer Service Charges 41,877
Blount County 11,176
Chino Sale 53,241
Cogenic Energy Settlement 10,000
Test Energy 114,972
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1994
ANALYSIS OF MISCELLANEOUS INCOME
INTEREST INCOME AND OTHER INCOME (Continued)
DESCRIPTION OF ITEMS AMOUNTS
Hackensack Engineering 45,560
Bristol Myers-Nova 7,867
Other 22,649
Miscellaneous (under $5,000 each) 14,243
Total for Account 421.0 2,514,228
ACCOUNT 421.1 - GAIN-DISPOSITION OF PROPERTY
ESS/HEG Diversco 441,949
Blount Termination 16,348
Camden City Settlement 79,853
Winterthur Museum Termination 92,306
Disposal of Fully Depreciated 1991 8,000
Sale of Chevy Van 7,500
Miscellaneous (under $5,000 each) 11,434
Total for Account 421.1 657,390
Entire Schedule Total $ 12,840,707
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1994
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
TOTAL
DESCRIPTION OF ITEMS AMOUNT OVERHEAD DEPARTMENT
OR 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, 1994
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
DEPARTMENTAL SALARY EXPENSE NUMBER
INCLUDED IN PERSONNEL
AMOUNTS BILLED TO
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, 1994
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"=ASSOCIAT
FROM WHOM PURCHASED E
ADDRESS "NA"=NON AMOUNT
ASSOCIATE
Ouside Services - Legal
NOVA 20 Thurber Boulevard
Smithfield, RI 02917
McDermott, Will & 75 State Street NA 237,507
Emery Boston, MA 02109
Dunn & Bradstreet Box 5077 NA 31,050
Boston, MA 02107
Various (89) NA 113,836
382,393
Outside Services -
Accounting
Coopers & Lybrand Department 1146 NA 44,328
Pittsburgh, PA 15264
Various (8, net of
capitalized amounts) (34,343)
9,985
Outside Services -
Engineering
Measuring & Monitoring 2 Broad Street NA 95,188
Red Bank, NJ 07701
Various (2) 5,757
100,945
Outside Services -
E.D.P.
EUA Service
Corporation West Bridgewater, MA A 115,102
02379
Outside Services -
Commissions
Matt C. Kiley Town Highway #30 NA 96,077
Concord, VT 05824
Various (147) NA 100,777
311,956
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1994
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"=ASSOCIAT
FROM WHOM PURCHASED ADDRESS E AMOUNT
"NA"=NON
ASSOCIATE
Outside Services - Other
Olsten P.O. Box 1091 NA 40,124
Westbury, NY 11590
Miscellaneous (74) NA 207,783
247,907
TOTAL 1,053,186
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1994
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, 1994
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 (2 U.S.C. >441 (b) (2) shall be
separately classified.
D E S C R I P T I O N AMOUNT
EUA Service Corporation Allocated Expenses 83,260
Capitalization of EUA Service Corporation Allocated
Expenses (180,894)
Conference Employee Training, Seminar and Conference
Fees 17,656
Petty Cash Expense, Letter of Credit & Bank Charges 17,422
Franchise & Annual Report Filing Fees 2,409
Miscellaneous 29,780
Billing of Management Fees (47,470)
Sanwa Financing 66,733
Director's Fees 22,600
Small Tools 11,150
Plan & Specs 2,502
TOTAL 25,148
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1994
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.
T Y P E O F P R O P E R T Y AMOUNT
Building Rents 474,955
Automobile Leasing 32,653
Data Processing and Other Equipment Rents 96,320
TOTAL 603,928
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1994
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.
K I N D O F T A X AMOUNT
Other Than U.S. Government Taxes
State of MA Unemployment Compensation 37,838
State of NY Unemployment Compensation 19,900
MA Health Insurance 1,228
State of Pennsylvania Unemployment 1,269
State of New Jersey Unemployment 1,187
State of New Jersey Disability 928
State of California Unemployment and Training 3,821
Property Taxes 43,622
State of Maryland Unemployment 187
State of Louisiana Unemployment 383
State of Maine Unemployment 987
State of Virginia Employer Tax 80
State of Georgia Unemployment 459
State of Rhode Island Unemployment 34,938
State of Rhode Island Job Development 1,397
State of Arkansas Unemployment 360
State of Michigan Unemployment 171
State of Arizona Unemployment 189
State of Ohio Employer Taxes 262
State of Connecticut Sales & Use 2,192
State of New York Sales & Use 29,942
State of Rhode Island Sales & Use 129
Foreign Taxes 7,010
Miscellaneous Taxes 19,934
Total 208,413
U.S. Government Taxes
Federal Unemployment Compensation 16,248
F.I.C.A. (Net of A & G Credit) 434,637
Total 450,885
TOTAL 659,298
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1994
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 AMOUNT
DONATION
Miscellaneous (4) 550
TOTAL 550
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1994
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 VARIOUS 158,233
connection with the
acquisition of Northeast
Energy Management, Inc.
158,233
TOTAL
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1994
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, 1994
SCHEDULE OF TERMINATED CONTRACTS
INSTRUCTIONS:Provide a schedule of terminated and/or canceled
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/(LOSS)
OF YEAR
167 Hampshire Hills Involuntary/Buyout 55,781 (79,774)
387 Camden City Involuntary/Buyout
Municipal Buildings 170,147 79,853
391 Winterthur Voluntary/Buyout 41,308 92,306
607 Diversco Voluntary/Buyout 2,804,636 532,364
901 Blount Voluntary/Buyout 1,004,982 54,519
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1994
SCHEDULE OF PROJECT VALUES
BOOK VALUE - NET
DESCRIPTION AT CLOSE OF YEAR ESTIMATED
FUTURE
VALUE
130 Jackson Brook Institute (2) 169,932 547,486
212 West Seneca Dev Ctr (1) 3,975,863 (A) 13,664,924
228 Clark College (2) 213,862 354,370
240 Worcester Company (3) 4,131,542 (A) 11,571,340
305 Rowes (Beacon) (1) 199,825 520,960
307 Schraft's (1) 182,073 723,288
359 Quest Quarters-Waltham (1) 132,949 304,801
382 Medical College (2) 887,774 (A) 16,427,786
383 Harvard School (2) 102,483 1,006,993
393 Hackensack Medical Ctr (2) 254,921 316,181
394 Keystone Junior College (2) 127,229 378,135
435 Alpha Industries (1) 183,968 434,527
523 Polaroid Corporation (1) 117,020 278,835
570 Pepsi-Cola Metropolitan
Bottling Co. (1) 446,906 982,373
583 Lahey Clinic (1) 138,151 289,877
584 Orange County Community College (1) 619,904 1,624,840
611 Boston University Phase I (1) 542,877 356,738
612 Watt Management Company (2) 145,919 185,826
655 Department Of Energy
Building-Lighting (1) 716,679 1,699,320
676 Dominican Convent (1) 139,197 666,828
680 Closter Board Of Education (1) 100,786 (B) 94,222
696 Mem Company (1) 190,649 457,819
708 Materials Research Corporation (1) 126,077 273,774
759 Chester Union Free School District (1) 142,460 356,327
763 Com/Electric- All Projects (1) 2,256,588 2,918,256
777 Barnert Hospital (1) 147,671 716,168
783 1560 Broadway (1) 117,234 (B) 95,200
806 Nanuet Public Schools (1) 200,230 323,169
811 Hornick (1) 153,793 490,341
821 St. Lukes Hospital (1) 208,653 276,637
843 Nihonmachi Terrace (Japanese
American) (3) 111,862 126,500
861 Fort Mcpherson/Fort Gillem (2) 1,473,363 2,397,809
862 Mobile Airport Authority (2) 117,558 150,150
868 Ups (1) 471,461 1,968,000
871 Orange County Community College (1) 325,077 968,365
889 Golten Marine (3) 156,296 206,112
891 400 Elmwood Associates (2) 135,844 206,540
922 Barry University (2) 1,293,487 2,467,500
926 Methodist Hospital (2) 671,028 797,993
955 Ideal Aluminum Products (1) 277,455 (B) 121,900
TOTAL 22,106,646 67,748,210
(1) Utility Load Reduction Programs (A)Includes recovery of estimated fuel
costs paid by the Company.
(2) Energy Management Programs (B)Projects expected to be written-down
(3) Packaged Cogeneration during 1995
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1994
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 ESTIMATED
CURRENT CUMULATIVE
YEAR KILOWATTS KILOWATTS
SAVED SAVED
Commonwealth Electric Co. (1) -0- 5,291
Public Service Electric & Gas Co. (3) 3,818 12,666
Orange and Rockland Utilities Inc. (2) -0- 2,519
Central Maine Power Company (1) 1,042 10,558
Rochester Gas and Electric Corp. (2) 3,265 5,004
Rockland Electric Company (3) -0- 381
Massachusetts Electric (1) -0- 88
Boston Edison (1) -0- 21,230
Consolidated Edison (2) 1,213 4,643
TOTAL 9,338 62,380
(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, 1994
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 1994
PROJECT/DESCRIPTION BUDGET ACTUALS VARIANCE
152 - T.J. MAXX
Gross Revenue 55,800 70,436 14,636
Expenses
Fuel Bills -0- -0- -0-
Electric Bills -0- -0- -0-
Maintenance 24,000 9,765 (14,325)
Debt Service -0- -0- -0-
Other Direct Costs -0- -0- -0-
Depreciation/Amort 93,876 93,876 -0-
Total Expenses 117,876 103,551 (14,325)
Net Income (loss) (62,076) (33,115) 28,961
Explanation:Project experienced several ballast failures that
were beyond the manufactures warranty period.
YTD 1994
PROJECT/DESCRIPTION BUDGET ACTUALS VARIANCE
246 - Raratan Valley Comm College
Gross Revenue 46,800 42,900 (3,900)
Expenses
Fuel Bills -0- -0- -0-
Electric Bills -0- -0- -0-
Maintenance 1,800 1,552 (248)
Debt Service -0- -0- -0-
Other Direct Costs -0- -0- -0-
Depreciation/Amort 55,512 50,886 (4,626)
Total Expenses 57,312 52,438 (4,874)
Net Income (loss) (10,512) (9,538) 974
Explanation:Project experienced greater than anticipated ballast failure.
These ballasts were out of the warranty period.
YTD 1994
PROJECT/DESCRIPTION BUDGET ACTUALS VARIANCE
385 - Robertwood Johnson
Gross Revenue 250,814 256 (250,558)
Expenses
Fuel Bills -0- -0- -0-
Electric Bills -0- -0- -0-
Maintenance -0- 2,801 (26,299)
Debt Service 29,100 -0- -0-
Other Direct Costs -0- -0- -0-
Depreciation/Amort 133,580 151,544 17,964
Total Expenses 162,680 154,544 (8,335)
Net Income (loss) 88,134 (154,089) (242,223)
Explanation: Customer voluntarily terminated contract in 1994.
YTD 1994
PROJECT/DESCRIPTION BUDGET ACTUALS VARIANCE
387 - Camden County Munc. Bldgs
Gross Revenue -0- -0- -0-
Expenses
Fuel Bills -0- -0- -0-
Electric Bills -0- 675 675
Maintenance -0- -0- -0-
Debt Service -0- -0- -0-
Other Direct Costs -0- -0- -0-
Depreciation/Amort -0- 51,042 51,042
Total Expenses -0- 51,717 51,717
Net Income (loss) -0- (51,717) (51,717)
Explanation:Customer voluntarily terminated contract in 1994.
YTD 1994
PROJECT/DESCRIPTION BUDGET ACTUALS VARIANCE
388 - E. Penn. Psych. Institute
Gross Revenue 863,079 808,398 (54,681)
Expenses
Fuel Bills 194,978 200,331 5,353
Electric Bills 571,648 615,171 43,523
Maintenance 12,000 14,181 2,181
Debt Service -0- -0- -0-
Other Direct Costs -0- -0- -0-
Depreciation/Amort 31,680 31,680 -0-
Total Expenses 810,306 861,363 51,057
Net Income (loss) 52,773 (52,965) (105,738)
Explanation:Project experienced boiler failure. Since there were
only 8 months remaining in the term of the contract,
the company did not feel it was cost effective to
replace.
YTD 1994
PROJECT/DESCRIPTION BUDGET ACTUALS VARIANCE
858 - Greendale Mall
Gross Revenue 99,792 234,562 134,770
Expenses
Fuel Bills -0- -0- -0-
Electric Bills -0- -0- -0-
Maintenance -0- 2,052 2,052
Debt Service -0- -0- -0-
Other Direct Costs -0- 169,567 169,567
Depreciation/Amort 87,708 70,590 (14,118)
Total Expenses 87,708 242,209 157,501
Net Income (loss) 15,084 (7,647) (22,731)
Explanation:Savings originally overstated. Contract has been re-
negotiated.
YTD 1994
PROJECT/DESCRIPTION BUDGET ACTUALS VARIANCE
955 - Ideal Aluminum
Gross Revenue -0- 9,589 9,589
Expenses
Fuel Bills -0- -0- -0-
Electric Bills -0- -0- -0-
Maintenance -0- 105 105
Debt Service -0- -0- -0-
Other Direct Costs -0- -0- -0-
Depreciation/Amort -0- 16,829 16,829
Total Expenses -0- 16,934 16,829
Net Income (loss) -0- (7,345) (7,345)
Explanation: Capital cost was 50% over budget which accounts for the
depreciation expense.
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1994
ORGANIZATIONAL STRUCTURE - EUA COGENEX CORPORATION
President
Vice President of Sales
Manager of Operations
Office Manager
Manager of Engineering and Construction
Director of Project Development
Vice President of Engineering
Cogeneration Business Manager
Manager Engineering and Construction
Director of Cogeneration Systems
Vice President of Finance
Director of Operations
Manager of Commercial Finance
Vice President and Assistant Comptroller
Manager of Personnel
Accounting Manager
Director of Sales
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
ORGANIZATIONAL STRUCTURE - EUA NOVA
President
Regional Director of Sales
General Manager
Manager of Construction Services
Western Regional Operations Manager
Manager of Purchasing and Inventory
Manager of Engineering's Manufacturing
Manager of Administrative and Accounting
Divisional Vice President
ANNUAL REPORT OF EUA COGENEX CORPORATION
For the Year Ended December 31, 1993
ORGANIZATIONAL STRUCTURE - EUA DAY
President
Executive Vice President, Administration and Finance
Manager of Accounting and Administration
Vice President and General Manager of Operations
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: /s/ Richard M. Burns
(Signature of Signing Officer)
Richard M. Burns, Comptroller
(Printed Name and Title of Signing
Officer)
Date: April 28, 1995
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