FORM U-13-60
Mutual and Subsidiary service companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1997 and Ending December 31, 1997
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 Burlingame, Asst. Comptroller, 100 Foot of John Street, Lowell, MA
01852
(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 82
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 5-8
COMPANY PROPERTY Schedule II 9-10
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF COMPANY PROPERTY Schedule III 11-12
INVESTMENTS Schedule IV 13-18
ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES Schedule V 19
ACCOUNTS RECEIVABLE AGING Schedule VI 20-21
ACCUMULATED PROVISION FOR UNCOLLECTIBLE Schedule VII 22
ACCOUNTS
MISCELLANEOUS CURRENT AND ACCRUED ASSETS Schedule VIII 23
MISCELLANEOUS DEFERRED DEBITS Schedule IX 24-25
PROPRIETARY CAPITAL Schedule XI 26
LONG-TERM DEBT Schedule XII 27
CURRENT AND ACCRUED LIABILITIES Schedule XIII 28-30
NOTES TO FINANCIAL STATEMENTS Schedule XIV 31-50
COMPARATIVE INCOME STATEMENT Schedule XV 51-52
ANALYSIS OF BILLING - SALES & PROJECT REVENUES Accounts 415/417 53
ANALYSIS OF MISCELLANEOUS INCOME Accounts 419/421 54-56
SCHEDULE OF EXPENSE DISTRIBUTION Schedule XVII 57
DEPARTMENTAL ANALYSIS OF SALARIES Account 920 58
OUTSIDE SERVICES EMPLOYED Account 923 59-61
GENERAL ADVERTISING EXPENSES Account 930.1 62
MISCELLANEOUS GENERAL EXPENSES Account 930.2 63
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
SCHEDULE OR PAGE
ACCT. NO. NO.
Description of Schedules and Accounts
RENTS Account 931 64
TAXES OTHER THAN INCOME Account 408 65-67
DONATIONS Account 426.1 68
OTHER DEDUCTIONS Account 426.5 69
NOTES TO STATEMENT OF INCOME Schedule XVIII 70
SCHEDULE OF TERMINATED CONTRACTS 71
SCHEDULE OF PROJECT VALUES 72
SCHEDULE OF ESTIMATED KILOWATTS SAVED 73
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Description of Reports or Statements
PROJECT INCOME STATEMENT 74-76
ORGANIZATIONAL STRUCTURE 77-81
SIGNATURE CLAUSE 82
<TABLE>
ANNUAL REPORT OF EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
SCHEDULE I - CONSOLIDATING BALANCE SHEETS
Give balance sheet of the companies as of December 31
CURRENT YEAR - 1997
ACCOUNT ASSETS AND OTHER DEBITS
<CAPTION>
COMPANY PROPERTY EUA EUA EUA
Cogenex Cogenex Renova Day
Consol. Elimination Corpor. (Division) (Division)
<S> <C> <C> <C> <C> <C> <C>
COMPANY PROPERTY
121 Company Property (Schedule II) 85,810,567 61,543,814 1,489,216 1,736,855
107 Construction work in progress (Schedule II) 9,462,145 9,078,204 0 239,477
Total Property 95,272,712 0 70,622,018 1,489,216 1,976,332
108 Less accumulated provision for depreciation
and amortization company property (Schedule III) (36,384,164) (28,418,497) (929,886) (876,857)
Net Company Property 58,888,548 0 42,203,521 559,330 1,099,475
INVESTMENTS
123 Investments in associated companies (Schedule IV) 31,409,130 17,037,245 48,446,375
124 Other Investments (Schedule IV) 42,253,065 34,125,819
Total Investments 73,662,195 17,037,245 82,572,194 0 0
CURRENT AND ACCRUED ASSETS
131 Cash 1,073,005 624,980 (42,790) (182,065)
134 Special Deposits 721,525 83,152 0 329,276
135 Working Funds 17,334 10,000 1,000 2,518
136 Temporary cash investments (Schedule IV) 0
141 Notes Receivable and Lease Receivable 14,673,382 21,213,378 32,791,100 72,958 1,287,015
143 Accounts Receivable (Schedule VI) 26,498,336 15,389,805 1,580,681 1,263,687
144 Accumulated provision for uncollectible acct. (Schedule VII) (857,161) (528,555) (313,286) (15,320)
146 Accounts receivable from associate companies (Schedule V & VI) 0 6,104,878 5,324,809 242,721 395,764
152 Fuel stock expenses undistributed 0
154 Materials and Supplies 1,647,126 63,569 819,446 225,540
163 Store expense undistributed 0
165 Prepayments 140,307 86,174 3,319 6,991
171 Interest Receivable 2,916,929 2,873,668 31,338
174 Miscellaneous current and accrued assets 166,848 143,351 23,497
Total Current and Accrued Assets 46,997,631 27,318,256 56,862,053 2,395,387 3,336,903
DEFERRED DEBITS
181 Unamortized debt expense 410,352 410,352
184 Clearing Accounts 0
186 Miscellaneous deferred debits (Schedule IX) 7,456,385 6,015,008 (17) 9,987
188 Research, development, or demonstration expend. (Schedule X) 0
Total Deferred Debits 7,866,737 0 6,425,360 (17) 9,987
190 ACCUMULATED DEFERRED INCOME TAX BENEFIT 8,911,448 4,043,382
TOTAL ASSETS AND OTHER DEBITS 196,326,559 44,355,501 192,106,510 2,954,700 4,446,365
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
SCHEDULE I - CONSOLIDATING BALANCE SHEETS (continued)
Give balance sheet of the companies as of December 31
CURRENT YEAR - 1997
ACCOUNT ASSETS AND OTHER DEBITS
<CAPTION>
COMPANY PROPERTY EUA EUA EUA EUA EUA
Day1/Day2 NEMI Cogenex Citizens Cogenex
(Division) Inc Canada Corpor. West
<S> <C> <C> <C> <C> <C> <C>
COMPANY PROPERTY
121 Company Property (Schedule II) 1,150,027 8,993,365 3,600,065 7,297,225
107 Construction work in progress (Schedule II) 0 701,949 (557,485)
Total Property 1,150,027 8,993,365 0 4,302,014 6,739,740
108 Less accumulated provision for depreciation
and amortization company property (Schedule III) (443,911) (3,918,843) (560,385) (1,235,785)
Net Company Property 706,116 5,074,522 0 3,741,629 5,503,955
INVESTMENTS
123 Investments in associated companies (Schedule IV)
124 Other Investments (Schedule IV) 4,322,974 3,804,272
Total Investments 0 0 4,322,974 3,804,272
CURRENT AND ACCRUED ASSETS
131 Cash 384,367 782,852 (423,831) (70,508)
134 Special Deposits 0 309,097
135 Working Funds 3,000 816
136 Temporary cash investments (Schedule IV)
141 Notes Receivable and Lease Receivable 916,892 818,795
143 Accounts Receivable (Schedule VI) 745,262 1,286,121 3,163,223 3,069,557
144 Accumulated provision for uncollectible acct. (Schedule VII)
146 Accounts receivable from associate companies (Schedule V & VI) 55,164 86,420
152 Fuel stock expenses undistributed
154 Materials and Supplies 411,194 127,377
163 Store expense undistributed
165 Prepayments 13,479 1,754 28,590
171 Interest Receivable 11,923
174 Miscellaneous current and accrued assets
Total Current and Accrued Assets 411,194 1,129,629 2,999,344 2,799,310 4,382,067
DEFERRED DEBITS
181 Unamortized debt expense
184 Clearing Accounts
186 Miscellaneous deferred debits (Schedule IX) 1,166,384 134,242 71,082 59,699
188 Research, development, or demonstration expenditures (Schedule X)
Total Deferred Debits 0 1,166,384 134,242 71,082 59,699
190 ACCUMULATED DEFERRED INCOME TAX BENEFIT 3,749,664 1,118,402
TOTAL ASSETS AND OTHER DEBITS 1,117,310 11,120,199 7,456,560 6,612,021 14,868,395
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
SCHEDULE I - CONSOLIDATING BALANCE SHEETS
Give balance sheet of the companies as of December 31
CURRENT YEAR - 1997
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL
<CAPTION>
EUA EUA EUA
Cogenex Cogenex Renova Day
Consol Eliminations Corporation (Division) (Division)
<S> <C> <C> <C> <C> <C> <C>
PROPRIETARY CAPITAL
201 Common Stock Issued (Schedule XI) 100 1,400 100
204 Redeemable preferred stock of subsidiaries (Schedule XI) 75
211 Miscellaneous paid-in-capital (Schedule X) 47,125,408 15,811,826 46,027,876 1,097,532
215 Appropriated retained earnings (Schedule XI) 0
216 Unappropriated retained earnings (Schedule XI) 477,169 1,224,019 2,659,708 (1,499,286) 292,183
Total Proprietary Capital 47,602,752 17,037,245 48,687,684 (1,499,286) 1,389,715
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII) 0
224 Other long-term debt (Schedule XII) 84,100,000 84,100,000
225 Unamortized premium on long-term debt 0
226 Unamortized discount of long-term debt 0
Total Long-Term Debt 84,100,000 0 84,100,000 0 0
CURRENT AND ACCRUED LIABILITIES
224 Current Maturities of Long-term debt (Schedule XIII) 6,700,000 6,700,000
231 Notes payable 40,693,521 37,550,000
232 Accounts payable 3,071,309 1,416,499 169,089 295,784
233 Notes payable to associate companies (Schedule XIII) 0 18,952,328 1,752,150 1,672,073
234 Accounts payable - associated companies (Schedule XIII) 521,506 6,104,878 1,193,768 835,660 298,386
235 Customer Deposits 2,099 2,099
236 Taxes accrued 301,884 44,949 59,902 26,535
237 Interest accrued 1,266,881 2,261,050 1,266,881 1,413,187 380,947
238 Dividends declared 0
241 Tax collections payable (Refund) 0
242 Miscellaneous current and accrued liab. (Schedule XIII) 3,399,562 3,355,955 3,867 1,488
Total Current and Accrued Liabilities 55,956,762 27,318,256 51,528,052 4,235,954 2,675,213
DEFERRED CREDITS
253 Other deferred credits 3,590,177 2,790,707 218,032 381,437
255 Accumulated deferred investment tax credit 0
Total Deferred Credits 3,590,177 0 2,790,707 218,032 381,437
282/283 ACCUMULATED DEFERRED INCOME TAXES 5,076,868 0 5,000,067 0 0
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 196,326,559 44,355,501 192,105,510 2,954,700 4,446,365
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
SCHEDULE I - CONSOLIDATING BALANCE SHEETS (continued)
Give balance sheet of the companies as of December 31
CURRENT YEAR - 1997
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL
<CAPTION>
EUA EUA EUA EUA EUA
Day1/Day2 NEM Cogenex Citizens Cogenex
(Division) Inc Canada Corpor. West
<S> <C> <C> <C> <C> <C> <C>
PROPRIETARY CAPITAL
201 Common Stock Issued (Schedule XI) 1,100 100 100 100
204 Redeemable preferred stock of subsidiaries 75
211 Miscellaneous paid-in-capital (Schedule XI) 10,502,050 (212,190) 5,521,966
215 Appropriated retained earnings (Schedule XI)
216 Unappropriated retained earnings (Schedule XI) (886,734) 190,866 1,072,955 223,453 (351,957)
Total Proprietary Capital (886,734) 10,694,016 860,865 223,628 5,170,109
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII)
224 Other long-term debt (Schedule XII)
225 Unamortized premium on long-term debt
226 Unamortized discount of long-term debt
Total Long-Term Debt 0 0 0 0 0
CURRENT AND ACCRUED LIABILITIES
224 Current Maturities of Long-term debt (Schedule XIII)
231 Notes payable 3,146,175 0 (2,654)
232 Accounts payable 648,592 222,159 319,186
233 Notes payable to associate companies (Schedule XIII) 1,961,412 348,222 5,428,000 7,790,471
234 Accounts payable - associated companies (Schedule XIII) 15,000 (46,045) 2,591,231 425,542 1,312,842
235 Customer Deposits
236 Taxes accrued 148,168 59 22,271
237 Interest accrued 27,632 175,974 263,310
238 Dividends declared 0
241 Tax collections payable (Refund)
242 Miscellaneous current and accrued liabilities (Schedule XIII) 36,844 1,408
Total Current and Accrued Liabilities 2,004,044 302,177 6,534,166 6,288,578 9,706,834
DEFERRED CREDITS
253 Other deferred credits 124,582 61,529 33,370 (19,480)
255 Accumulated deferred investment tax credits
Total Deferred Credits 0 124,582 61,529 33,370 (19,480)
282/283 ACCUMULATED DEFERRED INCOME TAXES (576) 0 66,445 10,932
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 1,117,310 11,120,199 7,456,560 6,612,021 14,868,395
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
SCHEDULE I - CONSOLIDATING BALANCE SHEETS
Give balance sheet of the companies as of December 31
CURRENT YEAR - 1996
ACCOUNT ASSETS AND OTHER DEBITS
<CAPTION>
COMPANY PROPERTY EUA EUA
Cogenex Cogenex Renova
Consolidated Eliminations Corporation (Division)
<S> <C> <C> <C> <C> <C>
COMPANY PROPERTY
121 Company Property (Schedule II) 77,212,472 57,502,131 1,269,576
107 Construction work in progress (Schedule II) 7,651,781 7,446,274 0
Total Property 84,864,253 0 64,948,405 1,269,576
108 Less accumulated provision for depreciation
and amortization company property (Schedule III) (32,763,307) (26,787,539) (1,014,747)
Net Company Property 52,100,946 0 38,160,866 254,829
INVESTMENTS
123 Investments in associated companies (Schedule IV) 35,465,734 16,546,068 52,011,802
124 Other Investments (Schedule IV) 49,528,866 40,792,218
Total Investments 84,994,600 16,546,068 92,804,020 0
CURRENT AND ACCRUED ASSETS
131 Cash 2,226,911 1,448,920 139,363
134 Special Deposits 682,378 84,292 200
135 Working Funds 19,650 10,000 1,565
136 Temporary cash investments (Schedule IV) 0
141 Notes Receivable and Lease Receivable 19,889,703 12,583,829 31,024,526 72,958
143 Accounts Receivable (Schedule VI) 22,458,486 12,010,724 1,771,693
144 Accumulated provision for uncollectible accounts (Schedule VII) (649,003) (439,386) (209,617)
146 Accounts receivable from associate companies (Schedule V & VI) 76,220 7,309,234 6,847,107 305,247
152 Fuel stock expenses undistributed 0
154 Materials and Supplies 2,025,772 63,569 1,339,641
163 Store expense undistributed 0
165 Prepayments 134,296 100,632 6,759
171 Interest Receivable 475,042 456,274 18,768
174 Miscellaneous current and accrued assets (Schedule VIII) 116,662 93,165
Total Current and Accrued Assets 47,456,117 19,893,063 51,699,823 3,446,577
0
DEFERRED DEBITS
181 Unamortized debt expense 558,402 558,402
184 Clearing Accounts 0
186 Miscellaneous deferred debits (Schedule IX) 8,441,266 6,877,267
188 Research, development, or demonstration expenditures (Schedule X) 0
Total Deferred Debits 8,999,668 0 7,435,669 0
190 ACCUMULATED DEFERRED INCOME TAX BENEFIT 9,031,031 4,302,038
TOTAL ASSETS AND OTHER DEBITS 202,582,362 36,439,131 194,402,416 3,701,406
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
SCHEDULE I - CONSOLIDATING BALANCE SHEETS (continued)
Give balance sheet of the companies as of December 31
CURRENT YEAR - 1996
ACCOUNT ASSETS AND OTHER DEBITS
<CAPTION>
COMPANY PROPERTY EUA EUA EUA EUA
NEM Cogenex Citizens Cogenex
Inc Canada Corporation West
<S> <C> <C> <C> <C> <C>
COMPANY PROPERTY
121 Company Property (Schedule II) 9,196,665 2,964,006 4,167,000
107 Construction work in progress (Schedule II) 0 10,202 195,305
Total Property 9,196,665 0 2,974,208 4,362,305
108 Less accumulated provision for depreciation
and amortization company property (Schedule III) (3,317,954) (163,421) (677,935)
Net Company Property 5,878,711 0 2,810,787 3,684,370
INVESTMENTS
123 Investments in associated companies (Schedule IV)
124 Other Investments (Schedule IV) 5,897,908 2,838,740
Total Investments 0 5,897,908 0 2,838,740
CURRENT AND ACCRUED ASSETS
131 Cash 568,629 50,242 44,720 (61,145)
134 Special Deposits 115,011 226,960
135 Working Funds 3,000 3,643
136 Temporary cash investments (Schedule IV)
141 Notes Receivable and Lease Receivable 891,568 451,932
143 Accounts Receivable (Schedule VI) 403,635 21,940 953,797 5,720,358
144 Accumulated provision for uncollectible accounts (Schedule VII)
146 Accounts receivable from associate companies (Schedule V & VI) 55,164 88,277
152 Fuel stock expenses undistributed
154 Materials and Supplies 39,790
163 Store expense undistributed
165 Prepayments 11,632 7,883
171 Interest Receivable
174 Miscellaneous current and accrued assets (Schedule VIII)
Total Current and Accrued Assets 972,264 975,382 1,171,692 6,477,698
0
DEFERRED DEBITS
181 Unamortized debt expense
184 Clearing Accounts
186 Miscellaneous deferred debits (Schedule IX) 1,260,128 246,156 50,598 5,912
188 Research, development, or demonstration expenditures (Schedule X)
Total Deferred Debits 1,260,128 246,156 50,598 5,912
190 ACCUMULATED DEFERRED INCOME TAX BENEFIT 4,038,647 690,346
TOTAL ASSETS AND OTHER DEBITS 12,149,750 7,119,446 4,033,077 13,697,066
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
SCHEDULE I - CONSOLIDATING BALANCE SHEETS
Give balance sheet of the companies as of December 31
CURRENT YEAR - 1996
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL
<CAPTION>
EUA EUA
Cogenex Cogenex Renova
Consolidated Eliminations Corporation (Division)
<S> <C> <C> <C> <C> <C> <C>
PROPRIETARY CAPITAL
201 Common Stock Issued (Schedule XI) 100 1,400 100
204 Redeemable preferred stock of subsidiaries (Schedule XI) 75
211 Miscellaneous paid-in-capital (Schedule XI) 47,273,467 15,802,669 46,175,934
215 Appropriated retained earnings (Schedule XI) 0
216 Unappropriated retained earnings (Schedule XI) 275,146 741,999 305,556 108,889
Total Proprietary Capital 47,548,788 16,546,068 46,481,590 108,889
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII) 0
224 Other long-term debt (Schedule XII) 90,800,000 90,800,000
225 Unamortized premium on long-term debt 0
226 Unamortized discount of long-term debt 0
Total Long-Term Debt 90,800,000 0 90,800,000 0
CURRENT AND ACCRUED LIABILITIES
224 Current Maturities of Long-term debt (Schedule XII) 21,700,000 21,700,000
231 Notes payable 22,464,685 17,923,000
232 Accounts payable 4,682,330 3,171,218 219,954
233 Notes payable to associate companies (Schedule XIII) 0 12,583,829 755,650
234 Accounts payable - associated companies (Schedule XIII) 221,684 5,516,432 666,693 732,305
236 Taxes accrued 450,570 14,208 55,316
237 Interest accrued 2,482,523 1,632,802 2,482,523 1,351,623
238 Dividends declared 0 160,000
241 Tax collections payable (Refund) 0
242 Miscellaneous current and accrued liabilities (Schedule XIII) 2,702,610 2,575,538 31,728
Total Current and Accrued Liabilities 54,704,402 19,893,063 48,533,180 3,146,576
DEFERRED CREDITS
253 Other deferred credits 5,023,528 4,125,450 445,941
255 Accumulated deferred investment tax credits 0
Total Deferred Credits 5,023,528 0 4,125,450 445,941
282/283 ACCUMULATED DEFERRED INCOME TAXES 4,505,644 0 4,462,196 0
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 202,582,362 36,439,131 194,402,416 3,701,406
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
SCHEDULE I - CONSOLIDATING BALANCE SHEETS (continued)
Give balance sheet of the companies as of December 31
CURRENT YEAR - 1996
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL
<CAPTION>
EUA EUA EUA EUA EUA
Day NEM Cogenex Citizens Cogenex
(Division) Inc Canada Corporation West
PROPRIETARY CAPITAL
<S> <C> <C> <C> <C> <C> <C>
201 Common Stock Issued (Schedule XI) 1,100 100 100 100
204 Redeemable preferred stock of subsidiaries (Schedule XI) 75
211 Miscellaneous paid-in-capital (Schedule XI) 1,097,532 11,502,050 (64,132) 4,364,752
215 Appropriated retained earnings (Schedule XI)
216 Unappropriated retained earnings (Schedule XI) (50,598) (229,430) 485,327 27,251 370,150
Total Proprietary Capital 1,046,934 11,273,720 421,295 27,426 4,735,002
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII)
224 Other long-term debt (Schedule XII)
225 Unamortized premium on long-term debt
226 Unamortized discount of long-term debt
Total Long-Term Debt
CURRENT AND ACCRUED LIABILITIES
224 Current Maturities of Long-term debt (Schedule XII)
231 Notes payable 3,648,300 873,782 19,603
232 Accounts payable 532,191 107,667 118,773 532,527
233 Notes payable to ass. cos. (Schedule XIII) 1,767,073 340,000 2,587,500 7,133,606
234 Accounts payable - ass. cos. (Schedule XIII) 200,027 8,363 2,591,231 339,890 1,199,607
236 Taxes accrued 9,775 336,360 3,351 31,560
237 Interest accrued 281,179
238 Dividends declared 160,000
241 Tax collections payable (Refund)
242 Misc. current and accrued liab. (Schedule XIII) 1,351 63,828 30,165
Total Current and Accrued Liabilities 2,791,596 508,363 6,683,558 3,987,124 8,947,068
DEFERRED CREDITS
253 Other deferred credits 79,802 366,900 14,593 2,870 (12,028)
255 Accumulated deferred investment tax credits
Total Deferred Credits 79,802 366,900 14,593 2,870 (12,028)
282/283 ACCUMULATED DEFERRED INCOME TAXES 767 0 15,657 27,024
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 3,918,332 12,149,750 7,119,446 4,033,077 13,697,066
</TABLE>
<TABLE>
SCHEDULE II COMPANY PROPERTY
<CAPTION>
DESCRIPTION BALANCE AT RETIREMENTS OTHER BALANCE
BEGINNING ADDITIONS OR SALES CHANGES AT CLOSE
OF YEAR OF YEAR
<S> <C> <C> <C> <C> <C>
COMPANY PROPERTY
ACCOUNT
121 LEASEHOLD IMPROVEMENTS:
EUA COGENEX 57,531 (19,374) 38,157
RENOVA 72,829 (1,978) 70,851
EUA CITIZENS 3,490 3,490
EUA COGENEX WEST 41,214 41,214
121 BUILDINGS:
EUA DAY 835,867 1,620 837,487
121 EQUIPMENT:
EUA COGENEX 36,001,120 2,148,126 (7,496,655) 30,652,591
RENOVA 435,714 285,116 (5,994) 714,836
EUA NEMI 8.663,633 (200,118) 8,463,515
EUA CITIZENS 1,481,656 2,142,866 (223,155) 3,401,367
EUA COGENEX WEST 794,893 1,542,643 (1,323,738) 1,013,798
121 COMPUTER EQUIPMENT AND
COMPUTER NETWORK:
EUA COGENEX 1,031,762 28,251 (390,210) 669,803
RENOVA 90,164 141,939 (5,362) 226,741
EUA DAY 2,426 2,426
EUA NEMI 4,906 106 (3,288) 1,724
EUA CITIZENS 21,909 21,909
EUA COGENEX WEST 224,439 11,666 (5,771) (B) 230,334
121 SOFTWARE DEVELOPMENT
COSTS:
DAY 1/ DAY 2: 0 1,150,027 1,150,027
121 OFFICE FURNITURE, TOOLS AND
EQUIPMENT:
EUA COGENEX 219,798 150,344 (77,833) 292,309
RENOVA 596,044 43,677 (188,399) 451,322
EUA DAY 627,879 105,086 (21,866) 711,099
EUA NEMI 28,126 28,126
EUA CITIZENS 10,202 10,202
EUA COGENEX WEST 49,025 5,423 54,448
121 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE
EQUIPMENT:
EUA COGENEX 0 0
RENOVA 74,824 (49,358) 25,466
EUA DAY 185,843 185,843
301 ORGANIZATION
EUA COGENEX 554,034 554,034
EUA CITIZENS 72,250 72,250
EUA COGENEX WEST 7,622 7,622
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
<CAPTION>
SCHEDULE II
COMPANY PROPERTY- (Continued)
DESCRIPTION BALANCE AT RETIREMENTS OTHER BALANCE AT
BEGINNING OF ADDITIONS OR SALES CHANGES CLOSE OF YEAR
YEAR
<S> <C> <C> <C> <C> <C>
302/303 MISCELLANEOUS PLANT AND
INTANGIBLE PLANT:
EUA COGENEX 16,989,895 13,358,682 (1,011,657) 29,336,920
EUA DAY 196,620 (196,620) 0
EUA NEMI 500,000 500,000
EUA CITIZENS 0 90,847 90,847
EUA COGENEX WEST 3,049,809 2,900,000 5,949,809
SUB-TOTAL 72,925,524 24,106,419 (11,018,985) (202,391) 85,810,567
107 CONSTRUCTION WORK IN
PROGRESS:
EUA COGENEX 10,094,264 46,291,852 (47,307,912) 9,078,204
EUA DAY 264,459 436,282 (461,264) 239,477
EUA CITIZENS 1,384,700 5,832,132 6,514,883) 701,949
EUA COGENEX WEST 195,305 6,038,338 (6,791,128) (557,485)
TOTAL 84,864,252 82,705,023 (72,094,172) (202,391) 95,272,712
A) ASSET WRITE-OFFS
B) RECLASS TO ORGANIZATION
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
2/ SUB-ACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE
COMPANY SHALL PROVIDE A LISTING BY SUB-ACCOUNT OF EQUIPMENT ADDITIONS DURING
THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR:
</TABLE>
<TABLE>
<CAPTION>
SUB-ACCOUNT DESCRIPTION NET CHANGE BALANCE AT CLOSE OF YEAR
<S> <C> <C> <C>
(1) Utility Load Reduction Programs (759,964) 29,608,030
(2) Energy Management Programs (2,650,067) 13,923,241
(3) Energy Management Equipment 279,122 714,836
TOTAL (3,130,909) 44,246,107
3/ DESCRIBE OTHER COMPANY PROPERTY:
NONE
4/ DESCRIBE CONSTRUCTION WORK IN PROGRESS:
FOR A DESCRIPTION OF CONSTRUCTION WORK IN PROGRESS,
SEE "NOTES TO FINANCIAL STATEMENTS" ON PAGE 29
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
<CAPTION>
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF COMPANY PROPERTY
BALANCE AT RETIREMENTS OTHER BALANCE AT
DESCRIPTION BEGINNING OF OR SALES CHANGES CLOSE OF
YEAR ADDITIONS YEAR
<S> <C> <C> <C> <C> <C>
ACCOUNT
111 ORGANIZATION:
EUA COGENEX 165,782 111,028 276,810
EUA CITIZENS 19,819 16,556 36,375
EUA COGENEX WEST 7,622 7,622
111 MISCELLANEOUS IN-
TANGIBLE PLANT:
EUA COGENEX 4,555,257 1,523,717 (36,126) 6,042,848
RENOVA 186,000 186,000
EUA NEMI 299,988 99,996 (8,333) 391,651
EUA CITIZENS 0 0
EUA COGENEX WEST 276,509 374,479 650,988
122 LEASEHOLD
IMPROVEMENTS:
EUA COGENEX 47,212 4,264 (19,374) 32,102
RENOVA 66,883 5,265 (1,540) 70,608
EUA CITIZENS 1,105 698 1,803
EUA COGENEX WEST 24,728 8,120 32,848
122 OFFICE FURNITURE AND
FIXTURES:
EUA COGENEX 188,770 21,308 (77,833) 132,245
RENOVA 433,410 61,315 (161,412) 333,313
EUA DAY 505,237 45,501 550,738
EUA NEMI 27,686 440 28,126
EUA CITIZENS 3,525 2,040 5,565
EUA COGENEX WEST 17,283 15,628 (1,684) 31,227
122 COMPUTER EQUIPMENT:
EUA COGENEX 929,674 166,577 (616,355) 479,896
RENOVA 6,366 24,439 (1,176) 29,629
EUA DAY 890 485 1,375
EUA NEMI 2,683 212 (1,171) 1,724
EUA CITIZENS 6,437 4,382 10,819
EUA COGENEX WEST 128,600 34,401 (71) 162,930
121 SOFTWARE DEVELOPMENT
COSTS:
DAY 1/ DAY 2 0 443,911 443,911
EUA DAY 0 13,108 (13,108) 0
122 EQUIPMENT:
EUA COGENEX 20,900,844 3,274,647 (2,720,845) 21,454,596
RENOVA 252,663 40,227 (2,466) 290,424
EUA NEMI 2,987,598 531,017 (21,273) 3,497,342
EUA CITIZENS 132,535 373,288 505,823
EUA COGENEX WEST 223,194 188,642 (61,660) 350,170
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF COMPANY PROPERTY (Continued)
<CAPTION>
BALANCE AT RETIREMENTS OTHER BALANCE AT
DESCRIPTION BEGINNING OF OR SALES CHANGES CLOSE OF
YEAR ADDITIONS YEAR
<S> <C> <C> <C> <C> <C>
122 AUTOMOBILES, OTHER
VEHICLES & RELATED
GARAGE EQUIPMENT
EUA COGENEX 0
RENOVA 69,425 5,129 (54,642) 19,912
EUA DAY 168,228 4,984 173,212
122 STRUCTURES AND
IMPROVEMENTS
EUA DAY 127,356 24,176 151,532
TOTALS 32,763,309 6,904,741 (4,217,546) (13,108) 35,437,396
(A) ASSET WRITE-OFFS
</TABLE>
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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
BEGINNING AT CLOSE
OF YEAR OF YEAR
ACCOUNT 123 - INVESTMENT IN SUBSIDIARY COMPANIES
Investments in Subsidiary Companies:
Micro Utility, L.P. 780,167 19,955
EUA WestCoast, L.P. 2,893,002 1,452,417
EUA/FRCII Energy Associates 287,360 1,022,061
Energy Capital & Services I & II 31,467,771 28,987,894
APS 37,434 (73,197)
Total Equity Investment 35,465,734 31,409,130
ACCOUNT 124 - OTHER INVESTMENTS
Notes Receivable:
EUA Cogenex Corporation:
Lebanon Valley College 89,000 89,000
Christian Health Care Center 45,000 45,000
Sycom Enterprises 1,881,671 1,686,671
Columbia University 9,519,246 9,153,148
Allied Signal Aerospace 922,194 922,194
Interfaith Medical - Large 739,000 699,000
Boston University Phase II 565,590
Eastman Kodak 5,869,821 4,191,392
Sycom - Pepco 95,171 1,156,898
Veterans Association Hospital 1,159,021 1,159,021
44 Stelton 68,000 66,000
Boston Edison DSM Notes 2,227,704 2,007,704
Enersave, Inc. 981,297 981,297
Sheraton - Washington 402,734 322,734
N. Rockland Central School 1,110,000 1,090,000
Spencer Press 275,000 260,000
Exxon - Biomedical 100,000 100,000
J&J Snack Food 100,000 100,000
Coral Gable Bldg. 9,000 5,000
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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
BEGINNING AT CLOSE
OF YEAR OF YEAR
ACCOUNT 124 - OTHER INVESTMENTS
Rochester Telephone 260,000 254,000
Trane Company. 375,590 375,590
TR Brell, Inc. 31,317 26,317
Clearwater Christian College 50,000 35,000
HTI- So. Tenn. Medical Center 33,289 27,289
Riverview Associates 6,600 6,600
Clark College 51,317 31,317
Shuwa 453,435 (4,276,346)
Boca Tecca County Club 10,000 0
HTI - Springfield 45,458 30,458
HTI - Livingston 28,244 17,244
Golden State Health 46,000 12,000
HTI - Crockett Hospital 31,343 25,343
HTI - Stone River 15,570 14,569
Flextronics - 1971 North 8,000 8,000
Flextronics - 2241 Lunday 25,000 19,000
Nations Bank, Coral Ridge 3,200 0
Metropolitan Square 88,051 53,051
LaSalle Military Academy 106,000 101,000
Southmore Medical 55,000 33,000
Wareham Schools 154,000 144,000
Kessler Institute 516,386 496,386
Boston University Bookstore 38,545 32,545
KAO Info Systems 105,000 95,000
HTI - Midway Park 32,000 26,000
Harry J. Rrashti & Company 135,583 135,583
Seton Hall University 900,000 900,000
General Accident Insurance
Company of America 275 275
Bell Atlantic 14,838 14,838
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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
BEGINNING AT CLOSE
OF YEAR OF YEAR
ACCOUNT 124 - OTHER INVESTMENTS
Eastern Christian Childrens 18,261 18,261
Fisher Scientific Co. 150,391 142,391
Fisher Scientific Company 62,098 92,098
Mountainside Hospital 145,000 145,000
Chase Manhattan Corp. 550,000 550,000
Homasote Company 110,000 110,000
The Baith Company 0 8,000
Lundardi's Supermarket 0 50,000
Zion Evangelical 0 30,000
Bird Bowl Partnership 0 11,000
St. Thomas University 0 21,000
Windsor-Anaheim Health 0 11,000
Family Bargain Center 0 11,000
Westside Associates 0 45,000
Kmart Corporation 0 365,435
Cornerstone Imagine 0 30,000
Serramonte Ridge Medical Center 0 25,000
JS Prop & Daly City 0 12,000
Total 30,815,240 24,350,303
EUA Cogenex West Corporation:
City of Boulder 41,741 0
Aerotech 64,115 49,206
Denver West 737,508 564,943
Harlequin 184,659 0
UNC 0 598,581
Nations Bank 0 844,221
Total 1,028,023 2,056,951
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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
EUA Canada:
Metro Toronto School Board 5,897,908 4,322,974
Total 5,897,908 4,322,974
TOTAL NOTES RECEIVABLE 37,741,171 30,730,210
Long Term Lease Receivable
EUA Cogenex Corporation:
Miscellaneous 523,993 376,991
White Memorial Medical Center 97,782 (9,397)
Stull Randolph 33,840 31,425
PF Labs 491,522 450,304
HWD 664,738 577,376
Barnett Phase II 80,492 29,515
Merck 4,233,008 4,080,533
NET 177,990 144,236
Seaman Furniture 330,361 270,101
HTI - DeQueen Reg Med 33,418 22,629
HTI - Corondo 28,362 18,550
HTI - Sycamore Schoals 40,324 25,318
HTI - Northside 39,573 25,949
HTI - Chino Community Hospital 36,700 6,654
HTI - Douglas Community Hospital 48,877 46,187
HTI - Palm Desert Hospital 25,344 12,048
Dragoco, Inc. 212,352 179,972
Basic Line, Inc. 156,418 147,988
1126 Martin Marietta Corp. 115,762 104,025
Club at Woodbridge 132,259 111,153
1202 Lockheed Martin Comm. 384,172 408,271
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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
BEGINNING AT CLOSE
OF YEAR OF YEAR
1337 Martin Marietta Corp. - PHS4 1,206,536 1,127,680
Alcan Aluminum Corp. 175,246 153,582
West Hudson Hospital Assoc. 178,726 171,684
Justin Corp. Center 22,943 11,383
1192 Martin Marietta Corp. -PHS3 506,240 463,022
Methodist Hospital 0 49,904
Fort Lee - Building 2 0 179,785
1390 Two Executive Drive Ft. Lee 0 263,712
OSI Specialities 0 72,281
Birmingham Towers 0 47,243
Pacific Gateway 0 175,412
Total 9,976,978 9,775,516
EUA Cogenex West Corporation:
Propp 72,507 61,223
Huguley 32,905 17,980
Gates 128,005 100,348
Marin 124,273 87,311
Gates Mech 288,078 250,425
Huguley 123,600 75,607
Huguley CP 393,021 332,820
Jeff & Young 153,318 131,260
W. Bayaud 57,226 48,993
W. Cedar Lighting 31,673 26,789
W. Cedar Mechanical 19,111 16,361
W. Bayaud Mechanical 47,288 40,484
W. Jeff Mechanical 33,097 28,336
DCC 93,656 73,098
Hudson's Bay 212,959 195,665
Sun Coast 0 168,755
Adams State 0 91,866
Total 1,810,717 1,747,321
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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
BEGINNING AT CLOSE
OF YEAR OF YEAR
ACCOUNT 124 - OTHER INVESTMENTS
Other Investments:
Total Long-Term Leases and
Notes Receivables and Other Investments 49,528,866 42,253,045
TOTAL INVESTMENTS 84,994,600 73,662,177
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
SCHEDULE V
ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable.
DESCRIPTION BALANCE AT BALANCE
BEGINNING AT CLOSE
OF YEAR OF YEAR
ACCOUNT 146 - ACCOUNTS RECEIVABLE
EUA Cogenex:
EUA Service Corporation 76,220 0
76,220 0
TOTAL 76,220 0
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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
BALANCE AT BALANCE
DESCRIPTION BEGINNING AT CLOSE
OF YEAR OF YEAR
ACCOUNT 143 - ACCOUNTS RECEIVABLE
EUA Cogenex Corporation
0 - 30 Days 2,953,499 6,334,353
31 - 60 Days 875,774 522,448
62 - 90 Days 994,400 801,209
91 - Over 7,187,051 7,731,795
12,010,724 15,389,805
RENOVA Corporation
0 - 30 Days 139,385 311,681
31 - 60 Days 353,997 290,886
62 - 90 Days 541,520 107,055
91 - Over 736,791 871,059
1,771,693 1,580,681
EUA Day Corporation
0 - 30 Days 510,972 336,238
31 - 60 Days 243,513 285,894
62 - 90 Days 106,537 97,612
91 - Over 715,319 543,943
1,576,341 1,263,687
EUA NEMI Corporation
0 - 30 Days 403,635 745,262
31 - 60 Days 0 0
62 - 90 Days 0 0
91 - Over 0 0
403,635 745,262
EUA Citizens Corporation
0 - 30 Days 260,342 3,163,223
31 - 60 Days 117,204 0
62 - 90 Days 156,272 0
91 - Over 419,980 0
953,798 3,163,223
EUA Cogenex West Corporation
0 - 30 Days 1,863,768 1,116,703
31 - 60 Days 1,251,035 359,603
62 - 90 Days 488,949 391,095
91 - Over 2,116,607 1,202,156
5,720,359 3,069,557
EUA Canada Corporation
0 - 30 Days 21,940 1,286,121
TOTAL ACCOUNT 143 - ACCOUNTS RECEIVABLE 22,458,490 26,498,336
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
SCHEDULE VI
ACCOUNTS RECEIVABLE AGING (Continued)
DESCRIPTION BALANCE AT BALANCE AT
BEGINNING OF END OF YEAR
YEAR
ACCOUNT 143 - ACCOUNTS RECEIVABLE
from associated companies
EUA Cogenex
0 - 30 Days 76,220 0
Total 76,220 0
<TABLE>
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
SCHEDULE VII
ACCUMULATED PROVISION FOR UNCOLLECTIBLE ACCOUNTS
INSTRUCTIONS: Complete the following analysis of accumulated provision for uncollectible accounts receivable.
<CAPTION>
DESCRIPTION BALANCE AT CURRENT YEAR BALANCE AT
BEGINNING OF CLOSE OF
YEAR PROVISIONS WRITE-OFF YEAR
<S> <C> <C> <C> <C>
ACCOUNT 144 - PROVISION FOR UNCOLLECTIBLE
ACCOUNTS:
EUA Cogenex Corporation 439,386 290,000 (200,831) 528,555
RENOVA 209,617 380,000 (276,331) 313,286
EUA Day 0 30,000 (14,680) 15,320
TOTAL 649,003 700,000 (491,842) 857,161
</TABLE>
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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 CLOSE
OF YEAR OF YEAR
ACCOUNT 174 - MISCELLANEOUS CURRENT
AND ACCRUED ASSETS
EUA Cogenex Corporation:
Executive Life Insurance 93,166 143,351
EUA Day Corporation:
Executive Life Insurance 23,496 23,496
TOTAL 116,662 166,848
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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 YEAR CLOSE OF YEAR
ACCOUNT 186 - MISCELLANEOUS
DEFERRED DEBITS
EUA Cogenex:
Extended Health Ins. Coverage 4,689
Leased Equipment 45,273 18,350
50/50 SEC Ruling 36,631 0
CWIP Reclasses 460,472 612,155
City of Chino 0 (16,843)
EUA Day - Interco ADJ (DEC 97) 38,482 61,969
RENOVA - Interco ADJ (21,629) 0
EUASC Bill - Sales Tax 22,119 22,119
Net Income ADJ (101,237) (380)
Columbia University 511,716 419,996
Pajaro Valley (68,075) 0
Open Work Authorizations 5,966,057 4,888,650
Sanwa 18,288 11,484
Miscellaneous (15) 3,570 (2,738)
Bankers Leasing 49,578 0
Revised Loss on Sale (49,578) 0
Cash Receipts (38,849) (4,443)
MWE - Legal 4,449 0
Sub Total 6,877,267 6,015,008
RENOVA:
Misc. Reconciling Adjustments 0 (17)
EUA Day:
Miscellaneous (1) 1,205 9,987
EUA NEMI:
Deferred Royalties 1,260,128 1,166,384
EUA Citizens Corporation
Open Work Authorizations 77,063 69,654
Interco Note ADJ (25,000) 0
Miscellaneous (3) (1,464) 1,428
Sub Total 50,599 71,082
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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 YEAR CLOSE OF YEAR
EUA Cogenex West Corporation:
Miscellaneous (2) 5,912 59,699
EUA Cogenex - Canada
Development Costs 246,156 134,242
TOTAL 8,441,267 7,456,385
<TABLE>
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
<CAPTION>
SCHEDULE XI
PROPRIETARY CAPITAL
ACCOUNT
NUMBER CLASS OF STOCK NUMBER OF PAR OR STATED OUTSTANDING CLOSE OF PERIOD
SHARES VALUE PER
AUTHORIZED SHARE NO. OF SHARES TOTAL AMOUNT
<S> <C> <C> <C> <C> <C>
201 COMMON STOCK ISSUED 1,000 $0.10 1,000 $100.00
</TABLE>
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 47,125,408
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS
(1) See Schedule XIV Notes to Financial Statements, Page 29
TOTAL 47,125,408
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.
DESCRIPTION BALANCE AT NET INCOME DIVIDENDS BALANCE AT
BEGINNING OR PAID CLOSE
OF YEAR (LOSS) OF YEAR
ACCOUNT 216 - UNAPPROPRIATED
RETAINED EARNINGS 275,146 202,023 (A) 477,169
TOTAL 275,146 202,023 477,169
(A) Income from Continuing Operations
<TABLE>
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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.
<CAPTION>
NAME OF CREDITOR TERMS OF OBLIG DATE BALANCE AT
CLASS & SERIES OF INT. AMOUNT BEGINNING 1/ BALANCE AT
OF OBLIGATION MATURITY RATE AMORTIZED OF YEAR ADDITION DEDUCTIONS CLOSE OF YEAR
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ACCOUNT 223 -
ADVANCES
FROM
PARENT AND
ASSOCIATE
COMPANIES
ACCOUNT 224 - Unsecured Notes
OTHER LONG - to Prudential
TERM DEBT: Ins. Co. of
America & PRUCO
Life Ins. Co. 10/30/01 9.6% 20,000,000 12,800,000 3,200,000 9,600,000
Unsecured Notes
to Prudential
Ins. Co. of
America 06/30/05 10.56% 35,000,000 28,000,000 720,000 3,500,000 24,500,000
Unsecured Notes
to qualified
institutional buyers
under Rule 144A
of the 1993 Act 09/15/00 7.0% 50,000,000 50,000,000 50,000,000
TOTAL 105,000,000 90,800,000 720,000 6,700,000 84,100,000
1/ GIVE AN EXPLANATION OF DEDUCTIONS
Sinking Fund Payments
</TABLE>
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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 CLOSE
OF YEAR OF YEAR
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE
COMPANIES
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE
COMPANIES:
EUA Cogenex Corporation
Eastern Utilities Associates 50,564 98,909
EUA Service Corporation 160,669 369,718
211,233 468,627
RENOVA
EUA Service Corporation 2,555 15,087
EUA Day
EUA Service Corporation 2,620 12,399
NEMI
EUA Service Corporation (1,682) (1,770)
EUA Citizens
EUA Service Corporation 3,853 20,024
EUA Cogenex West
EUA Service Corporation 3,105 7,139
TOTAL 221,684 521,506
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
SCHEDULE XIII
CURRENT AND ACCRUED LIABILITIES (Continued)
DESCRIPTION BALANCE AT BALANCE AT
BEGINNING CLOSE
ACCOUNT 242 - MISCELLANEOUS CURRENT AND
ACCRUED LIABILITIES
EUA Cogenex Corporation
Miscellaneous (14) (16,976) 15,628
Commitment Fee 16,301 (562)
Retainage Liability 141,643 308,559
Reserve for Cogen Disp. 2,170,245 1,611,904
Accrued Liability (HTI PRJS) 81,116 75,537
Accrued Liability (BECO PRJS) 22,657 22,657
Energy Matrix, Inc. 108,177 182,349
Reorganization 365,906 380,314
Tru-Brite/Walgreens 45,961 45,975
Conserv Alliance/Enertech (348,480) 0
Systems Corp/Gillem & McPherson (11,012) 48,524
MIT 0 100,000
Onsite Southern California Edison 0 255,533
Standard Offer Pay to Sanwa 0 (171,253)
Proven Alternatives 0 446,161
Sycom Indianhead 0 34,629
2,575,538 3,355,955
EUA Day
Miscellaneous (3) 1,351 1,351
1,488 1,488
RENOVA
Federal Income Tax Withheld 18,897 0
Miscellaneous (7) 12,831 3,867
31,728 3,867
EUA Cogenex West
Accrued Vacations 27,582 0
Miscellaneous (5) 2,583 1,408
30,165 1,408
EUA Citizens
Accrued Maintenance Fees 52,918 34.205
Miscellaneous (3) 10,910 2,339
63,828 36,844
TOTAL 2,702,610 3,399,562
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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.
DESCRIPTION BALANCE AT BALANCE AT
BEGINNING CLOSE
OF YEAR OF YEAR
ACCOUNT 224 - CURRENT MATURITIES OF LT DEBT
Prudential Ins. Co. Due 9/30/97 @ 7.22% 15,000,000 0
Prudential Ins. Co. Due 10/30/01 @ 9.6% 3,200,000 3,200,000
Prudential Ins. Co. Due 6/30/05 @ 10.56% 3,500,000 3,500,000
TOTAL 21,700,000 6,700,000
EUA Cogenex Corporation
Notes To Consolidated Financial Statements
For The Years December 31, 1997 and 1996
A. General
EUA Cogenex Corporation (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 three 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. There are no current
geographic restrictions on the Company's operations.
The Company is an energy services company that employs energy efficient
technology and equipment intended to reduce the energy consumption and related
costs of its customers. Such technology and equipment include building
automation systems, lighting modifications, boiler and chiller replacements and
other mechanical measures such as motors and drives. The Company may design,
install, own, operate, maintain, and finance specific energy efficient
applications for its customers.
The Company is compensated for its services primarily through energy services
agreements in which the Company and the customer, who occupies or owns a
facility, agree upon a prescribed base year and a set of savings calculations.
The Company then receives payments based on a portion of the savings that
result from the installation and maintenance of the energy efficient equipment
in the facility. Some of the Company's revenues under these agreements are
dependent upon the actual achievement of energy savings; therefore, the Company
assesses the financial and technical risk of each customer and project.
In addition, the Company participates in demand side management (DSM) programs
sponsored by electric utilities as a means to decrease both base load and peak
demand on the utilities' systems. In utility DSM programs, the Company
contracts with the utility and its commercial and industrial customers in
order to decrease the overall demand on the utility system or to reduce peak
demand, curtailing the need for costly capacity additions. The Company is paid
by the utility based on the reduction i n the demand on the utility's system
and may also receive a portion of the customers' savings by entering into
energy services agreements of the type described above with those customers.
The Company contracts for utility DSM programs through a bidding process or
participates in the utility's "Standard Offer Program". The Company also may,
from time to time, acquire existing DSM contracts or energy services
agreements, or the benefits from those contracts, from other energy services
companies.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements
For The Years December 31, 1997 and 1996
The Company also operates a lighting services division, RENOVA (f/k/a/ RENOVA),
and a controls division, EUA Day. RENOVA provides lighting products designed
to achieve an efficiency gain through the integration of various lamp, ballast,
and light reflector products. The Company restructured its RENOVA Division in
1996 because of changing market conditions. EUA Day is primarily engaged in the
business of customization, installation and servicing of building temperature
control systems, monitoring and verification systems and process control
systems for the purpose of energy conservation. These systems are primarily
designed for regulating lighting, heating, ventilation, and air conditioning
but can also simultaneously be used for security surveillance of building entry
and exit, equipment monitoring, and air quality monitoring.
The Company also provides consulting services to its customers in the form of
training in the proper use and maintenance of the energy equipment. This
service includes instruction in the use of existing equipment as well as newly
installed equipment so that further energy savings can be realized. In
addition, the Company monitors installed projects on a 24-hour basis and
dispatches third party contractors to make repairs and/or adjustments.
On July 25, 1996, the Company received an order from the SEC authorizing the
Company to expand the services it currently provides to include services
relating to furnishing and conserving water for the types of customers to whom
it has historically furnished energy related services. The water conservation
services that the Company anticipates providing may range from domestic
applications such as toilet replacements and retrofits, shower head
replacements and aerators, to commercial and industrial water treatment
applications such as water reclamation, purification and reuse, heating,
cooling and refrigeration, and waste water filtration systems.
The Company's principal markets include institutional, commercial, industrial
and government entities, and through its EUA Citizens Conservation Services
(Citizens) subsidiary, public and private multi-family housing.
The Company's competition is comprised primarily of manufacturers and
distributors of energy efficiency equipment, other utility owned energy
services companies, engineering consulting firms, and financial institutions
who provide capital to finance energy efficiency projects.
The rates charged by the Company to customers through its Energy Service
Agreements are not subject to the jurisdiction of any regulatory agency.
At December 31, 1997, the Company employed 196 persons in its operations.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements
For The Years December 31, 1997 and 1996
As of December 31, 1997, the Company participated in five partnerships and two
joint ventures. It is the managing general partner in all of the partnerships.
The Company has provided virtually all of the capital to the partnerships and
is entitled to a return of, and on, this capital. The joint venture capital is
provided evenly by the venture participants. All partnerships and their
customers are subject to the same selection and screening process to establish
acceptable credit quality.
B. Summary of Significant Accounting Policies
Basis of Consolidation
The consolidated financial statements include the accounts of five partnership
entities in which the Company has a controlling equity interest and its four
wholly-owned subsidiaries, including a Canadian subsidiary, EUA Cogenex -
Canada. All material inter-company transactions between the consolidated
entities have been eliminated. The Company reflects all losses on partnerships
in excess of their partner's capital interest.
Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets a nd liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Reclassifications
Certain prior period amounts on the 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 $1.0 million
in 1997 and $1.1 million in 1996.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements
For The Years December 31, 1997 and 1996
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 capitalized and then
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.
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 are complete. All installation
and fabrication costs are recognized as the projects are completed and/or sold.
Interest Income
Interest income from notes and leases receivable is recorded on the accrual
basis over the term of the agreements.
Inventories
Inventories represent finished goods and raw materials utilized in the
fabrication of lighting retrofit kits by RENOVA 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.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements
For The Years December 31, 1997 and 1996
Property, Plant and Equipment
Property, plant and equipment and projects in progress, which are stated at
cost, are comprised of the following (in thousands):
1997 1996
Project energy management and
demand reduction equipment $ 89,630 $ 79,449
Office furniture and equipment 4,719 4,667
Other 1,049 1,097
Sub-total 95,398 85,213
Less: Accumulated Depreciation 41,207 36,636
Net property, plant and equipment 54,191 48,577
Energy savings projects in progress 14,799 21,294
Net property, plant and equipment
and projects in progress $ 68,990 $ 69,871
The components of project equipment 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, fabrication equipment and a building is computed on the straight-
line method based on estimated useful lives of five, ten, and forty years,
respectively, and is include d as part of G&A expenses on the income statement.
Project equipment is depreciated on a basis which includes or approximates 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 $7.9
million and $7.8 million in 1997 and 1996, respectively, and is included in
contract expense on the income statement.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements
For The Years December 31, 1997 and 1996
Energy savings projects in progress represents the cost of such projects, as
well as, in some cases, advances to contractors that can be satisfied by the
contractor delivering to the Company the energy savings agreement
collateralized by the equipment and the right to the revenues generated.
Ultimately the projects are either capitalized as project energy management and
demand reduction equipment or charged to cost of sales depending on the terms
of the arrangement with the customer.
Income Taxes
The general policy of the Company with respect to accounting for 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.
The Company files a consolidated federal tax return with EUA, as a result
payments or refunds are allocated to the Company in accordance with EUA's
Federal Tax Sharing Agreement. However, the Company files its state tax
returns on an individual comp any basis.
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.
New Accounting Standards
The Company adopted Statement of Financial Accounting Standard No. 125
"Accounting for Transfers and Serving of Financial Assets and Extinguishment of
Liabilities" (FAS 125) on January 1, 1997. FAS 125 provides consistent
standards for distinguishing transfers of financial assets that are sales from
transfers that are secured borrowings. In addition, it also requires that
liabilities and derivatives incurred or obtained by transfers as part of a
transfer of financial assets be initially measured at fair value, if
practicable.
In June 1997 the FASB issued Statement No. 130, "Reporting Comprehensive
Income," which establishes standards for reporting comprehensive income and its
components (revenues, expenses, gains, and losses) in a set of general-purpose
financial statements. This Statement requires that all items that are
required to be recognized under accounting standards as components of
comprehensive income be reported in a financial statement that is displayed
with the same prominence as other financial statements. This Statement is
effective for fiscal years beginning after December 15, 1997 and the Company
will adopt Statement 130 in 1998.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements
For The Years December 31, 1997 and 1996
C. Acquisitions
The Company acquired on May 1, 1995, Highland Energy Group, an energy services
company in Boulder, Colorado in exchange for $4.2 million of EUA common shares
(176,258 shares). Highland provides energy conservation services in Colorado,
Texas, Ohio, North Carolina and certain other midwestern states. In
accordance with provisions of the original agreement, an additional earn-out
payment of $2.9 million was made in 1997 and recorded as goodwill. The
Highland acquisition has resulted in the recognition of goodwill in total of
approximately $6.0 million and is being amortized over 15 years.
In addition, the Company has recognized approximately $6.6 million of goodwill
as a result of its acquisitions of RENOVA and EUA Day. These acquisitions were
accounted for using the purchase method and are being amortized over 11 and 15
years, respectively.
D. Income Taxes
The Company utilizes FASB Statement No. 109, "Accounting for Income Taxes" (FAS
109) which requires 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 temporary differences reverse.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements
For The Years December 31, 1997 and 1996
At December 31, 1997 and 1996, total deferred tax assets, for which a valuation
allowance of approximately $1.4 million in 1997 and $1.0 million in 1996 was
deemed necessary, were $10.6 million and $10.4 million, respectively, and total
deferred tax liabilities were $6.8 million and $5.9 million, respectively.
Total deferred tax assets and liabilities are comprised as follows (in
thousands):
Deferred Tax Deferred Tax
Assets Liabilities
1997 1996 1997 1996
Plant Related Plant Related
Differences $2,251 $1,730 Differences $6,250 $5,578
Provision for Step Postretirement
Up Tax Basis - NEM 3,650 3,965 Benefits 361 145
NOL carry- forward, Other 159 177
(net of $1,414 and
$1,034 respectively
valuation allowance) 1,938 1,469
Reserve for
cogeneration losses 524 901
Reserve for
unrecovered costs 713 866
Bad Debts 347 260
Pension 904 994
Other 278 240
Total $10,605 $10,425 $6,770 $5,900
The Company also has approximately $22.0 million of state net operating loss
carryforwards which expire between the years 2000 and 2011.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements
For The Years December 31, 1997 and 1996
Components of income tax expense from operations for the years 1997 and 1996
are as follows:
In Thousands 1997 1996
US Federal:
Current (benefit) $ (1,068) $ (5,646)
Deferred 949 1,579
(119) (4,067)
Foreign:
Current 448 361
State:
Current 88 194
Deferred (benefit) 150 (152)
238 42
Provision for income
taxes (benefit) $ 567 $ (3,664)
Total income tax expense (benefit) from operations 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 1997 1996
Federal income tax (benefit)
computed at statutory rates $ 269 $ (3,565)
Increases (decreases) in tax from:
State taxes, net of federal
income tax benefit 154 27
Other 144 (126)
Provision (Benefit) for income
taxes on operations $ 567 $ (3,664)
EUA Cogenex Corporation
Notes To Consolidated Financial Statements
For The Years December 31, 1997 and 1996
E. Notes Receivable
The Company has two types of notes receivable. The first type results from the
construction and sale of energy savings projects to its customers. Upon
completion of the construction, a sale is recorded and reflected as a note
receivable on the Comp any's financial statements.
The second type results from arrangements with contractors and/or other energy
services firms to finance the installation of energy savings project equipment
at their customer's premises. This type is also recorded on the Company's
financial statements as notes receivable.
Interest income is accrued on these contracts based on the stated or implicit
interest rate within each contract ranging from 7.0% to 18.0%. The term of the
contracts range in maturity from one to ten years.
The components of notes receivable are as follows (in thousands):
1997 1996
Notes from Project Sales $ 23,131 $ 28,566
Notes from Project Financing 19,202 24,404
Total $ 42,333 $ 52,970
In September and December of 1997, the Company sold to a financial institution
receivables with a net present value totaling $12.9 million. Cogenex has
recorded these transactions as sales under FAS 125 and has recorded a resulting
after tax gain of approximately $0.6 million.
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 recognized as income under the interest
method over the term of the lease.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements
For The Years December 31, 1997 and 1996
The components of the net investment in sales-type leases are as follows (in
thousands):
1997 1996
Minimum lease payments receivable $ 30,568 $ 29,364
Less: Unearned interest 8,904 8,210
Current portion 2,860 2,552
Net investment in sales-type leases $ 18,804 $ 18,602
Future minimum lease payments due under sales-type leases at December 31, 1997
are as follows (in thousands):
1998 $ 4,816
1999 4,332
2000 3,750
2001 3,688
2002 and thereafter 13,982
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 costs 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
For The Years December 31, 1997 and 1996
H. Long-Term Debt (in thousands)
1997 1996
Unsecured Notes Payable:
10.56% series due June 30, 2005 $ 28,000 $ 31,500
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 12,800 16,000
Interest only payable through
October 31, 1995. A sinking
fund replacement of $800 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
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 90,800 112,500
Less Current Maturities 6,700 21,700
$ 84,100 $ 90,800
EUA Cogenex Corporation
Notes To Consolidated Financial Statements
For The Years December 31, 1997 and 1996
Scheduled maturities of long-term debt for the five years following 1997 are
as follow (in thousands):
1998 $ 6,700
1999 6,700
2000 56,700
2001 6,700
2002 3,500
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 30% for any two successive quarters.
The Company was in compliance with the common equity to capitalization ratio
at December 31, 1997. The Company was not in compliance with the original
interest coverage covenant contained in certain of its unsecured note
agreements, but was in compliance with a modified covenant effective through
January 1, 1998. The Company reached agreement with lenders to modify the
interest coverage covenant contained in these agreements through January 1,
1999. As of December 31, 1997, the Company was in compliance with the
modified interest coverage covenant contained in these agreements.
In addition, in connection with the Company's 9.6% unsecured notes, EUA is
required to maintain an equity to capitalization ratio of at least 30%. EUA
was in compliance with this provision at December 31, 1997.
I. Notes Payable - Lines of Credit
In July 1997, several EUA System companies, including Cogenex, entered into a
three-year revolving credit agreement allowing for borrowings in aggregate of
up to $120 million. As of December 31, 1997, various financial institutions
have committed up to $75 million under the revolving credit facility. In
accordance with the revolving credit agreement, commitment fees are required
to maintain certain lines of credit. At December 31, 1997 under the revolving
credit commitments, the EUA System ha d short-term borrowings available of
approximately $13.5 million. At December 31, 1997 and 1996, Cogenex had $40.7
million and $21.6 million, respectively, of short-term borrowings under these
agreements at weighted average interest rates of 5.41% a nd 5.50%,
respectively. In addition, the Company had short-term debt outstanding of
approximately $0.9 million at December 31, 1996 under the Company's own
financing arrangements.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements
For The Years December 31, 1997 and 1996
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 fair
value of the Company's net investment in sales-type leases and long-term notes
receivables was based on market rates of similar receivables.
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,
1997 and 1996 are as follows (dollars in thousands):
<TABLE>
<CAPTION>
Carrying Fair
Amount Value
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Cash and Cash Equivalents $ 4,472 $ 7,050 $ 4,472 $ 7,050
Notes Receivable and Net Investment
in Sales-Type Leases $ 63,997 $ 74,124 $ 65,005 $ 76,395
Long-Term Debt
(including current maturities) $ 90,800 $112,500 $ 96,846 $118,040
</TABLE>
EUA Cogenex Corporation
Notes To Consolidated Financial Statements
For The Years December 31, 1997 and 1996
K. Preferred Stock
In connection with the acquisition of Citizens, the Company issued 7,500 shares
of Citizens' Non-Participating Preferred Stock, par value of $0.01. The
Preferred Stock is non-redeemable until January 1, 2002 or upon the seventh
anniversary of the execution of the definitive agreement dated January 12,
1995. After such date, the Preferred Stock may be redeemed at the Company's
sole discretion at a redemption price of $100 per share plus accrued dividends.
Dividends are non-cumulative and are contingent upon Citizens' results of
operations. The annual dividend rate is equal to 33% of the adjusted net
income of Citizens (as defined in such agreements) divided by 7,500 shares. As
of December 31, 1997, no dividends were accrued as a result of the level of
adjusted net income of Citizens.
L. Joint Ventures
In 1996, the Company announced the formation of a joint venture with Monenco-
Agra of Canada to provide energy services in Canada. This alliance is designed
to provide the Company with a significant presence in Canada. All costs and
profits are shared equally by Monenco-Agra and the Company.
The Company has also formed a joint venture with Allegheny Power Systems (APS)
to develop one specific project in the State of Maryland. All costs and
profits are shared equally by APS and the Company.
M. 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.
Retirement plan benefits are based on years of service and average compensation
over the four y ears prior to retirement. It is the EUA System's policy to
fund the retirement plan on a current basis in amounts determined to meet the
funding standards established by the Employee Retirement Income Security Act of
1974.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements
For The Years December 31, 1997 and 1996
Total pension expense for the retirement plan in 1997 and in 1996 included the
following components (in thousands):
1997 1996
Service cost-benefits earned
during the period $ 36 $ 299
Interest cost on projected
benefit obligation 150 192
Actual return on assets (184) (99)
Net amortization and deferrals 70 29
Curtailment (131)
Total periodic pension (income)
Expense $ (59) $ 421
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 1997 and 1996 were 7.50% and 7.25% and 4.25 % and 4.25%,
respectively. The expected long-term rate of return on plan assets was 9.50%
for 1997 and 1996.
The discount rate used to determine pension costs was changed effective January
1, 1998, to 7.25% and was used to calculate the plan's funded status at
December 31, 1997.
In March of 1997, EUA and Cogenex management agreed to freeze all future
pension benefits. As a result, Cogenex and RENOVA participants in the plan
will not earn additional pension benefits based on service after March 31,
1997. This decision resulted in recognition of a pre-tax gain of
approximately $290,000. The curtailment gain is included in Other Income and
Deductions in the Consolidated Statements of Income.
The EUA System also maintains non-qualified supplemental retirement plans for
certain officers. EUA maintains life insurance on certain participants of the
supplemental plans to fund in whole, or in part, its future liabilities under
the supplemental plans. For the years ended December 31, 1997 and 1996
expenses related to the supplemental plan were approximately $38,000 and
$26,000, respectively.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements
For The Years December 31, 1997 and 1996
The Company also provides a defined contribution 401 (K) savings plan for
substantially all employees. The Company's matching percentage of employees'
voluntary contribution to the plan amounted to $251,000 and $150,000 for 1997
and 1996, respectively. As a result of the curtailment of the pension plan,
management has elected to increase the Company's matching of the employee
contribution to the 401K plan.
Post Retirement Benefits Other than Pension
FAS 106 "Accounting for Postretirement Benefits Other Than Pensions",
establishes accounting and reporting standards for such postretirement benefits
as health care and life insurance. In March of 1997, Cogenex and EUA
management agreed to withdraw the Company from EUA Service Corporation's
Postretirement Welfare Benefit Plan. The liability for two eligible
participants currently receiving benefits was satisfied by transferring assets
equal to the Accumulated Postretirement Benefit Obligation to EUA Service
Corporation who will pay the benefits.
The decision to withdraw from the plan resulted in recognition of pre-tax gain
of approximately $0.5 million. This termination gain is included in Other
Income and Deductions on the Consolidated Statements of Income.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements
For The Years December 31, 1997 and 1996
The total cost of postretirement benefits other than pension for 1996 includes
the following components (in thousands):
1997 1996
Service cost $ 98
Interest cost 45
Actual return of plan assets (3)
Amortization of transition obligation 23
Other amortizations and deferrals-net (28)
Curtailment (548)
Total postretirement benefit (income) cost $ (548) $ 135
Assumptions:
Discount rate 7.25%
Health care cost trend rate - near-term 9.00%
- long-term 5.00%
Salary increase rate 4.25%
Rate of return on plan assets - non-union 7.50%
Reconciliation of funded status:
Accumulated postretirement benefit obligation:
Retirees $ (126)
Active employees fully eligible for benefits ------
Other active employees (508)
Total (634)
Fair value of assets, primarily notes and bonds 577
Unrecognized transition obligation 377
Unrecognized net gain (409)
Accrued postretirement benefit cost $ (89)
As a result of the 1997 termination there is no remaining accrued
postretirement benefit costs.
Cogenex Corporation
Notes To Consolidated Financial Statements
for The Years December 31, 1997 and 1996
In 1996 the Company contributed approximately $237,000 to an irrevocable
external Voluntary Employee Benefit Association Trust Fund established to fund
postretirement benefits. All funds have been transferred to EUA Service
Corporation in 1997 to satisfy the liability for two eligible participants
currently receiving benefits.
Operating Leases
The Company conducts its operations in leased facilities under certain non-
cancelable operating lease arrangements which expire through 2002. In
addition, the Company maintains a master operating lease for certain office
equipment and automobiles. Future minimum payments under these leases are as
follows (in thousands):
1998 840
1999 666
2000 404
2001 241
2002 and thereafter 200
$ 2,351
Total rent expense under the operating leases was $1.1 million in 1997 and
1996.
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 a
performance bond to collateralize performance under the contract. The customer
will only draw these contingent obligations 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, 1997 was approximately $1.9 million and
$9.4 million, respectively, and as of December 31, 1996 were approximately $4.3
million and $12.6 million, respectively.
As of December 31, 1997, management is not aware of any potential drawings
under the letters of credit or claims made to the surety under the performance
bonds.
EUA Cogenex Corporation
Notes To Consolidated Financial Statements
for The Years December 31, 1997 and 1996
Litigation
In September 1995, EUA FRCII Energy Associates, Micro Utility Partners of
America, L.P., and EUA WestCoast, L.P., each of which is a partnership of which
the Company is the managing partner (the Partnerships) and The Company entered
into an assignment agreement with Ridgewood/Mass. Corp. (f/k/a Ridgewood
Cogen Corporation) (Ridgewood) whereby Ridgewood acquired the benefits and
obligations to certain cogeneration projects from the Company and the
Partnerships. In 1996, the Partnerships and the Company filed suit in the
United States district Court for the district of Massachusetts against
Ridgewood and others seeking payment of approximately $518,000, resulting from
Ridgewood's failure and refusal to pay for services provided on their behalf
under a certain Transition Period Agreement between and among the parties.
On December 2, 1996, Ridgewood filed a demand for arbitration in Boston,
Massachusetts with regard to such claim and with regard to an alleged breach of
representations and warranties by the Company and the Partnerships under the
assignment agreement . Ridgewood seeks a total of approximately $4.3 million.
The federal court action has been dismissed without prejudice pending the
arbitration. In the arbitration, the Company and the Partnerships have filed a
counterclaim in which they also seek a determination that certain provisions of
the assignment agreement are binding and enforceable according to their terms.
The American Arbitration Association has set a preliminary hearing date on June
14, 1998. The amount in controversy with respect to the counterclaims has not
yet been determined. Management cannot determine at this time the ultimate
outcome of these proceedings.
N. Subsequent Event
On March 19, 1998 EUA announced that it has identified a potential purchaser of
Cogenex and has entered into exclusive negotiations which could lead to its
sale by mid year of 1998. Terms of the agreement and identification of the
potential purchaser are subject to a confidentiality agreement between the
parties and will not be publicly disclosed until a definitive agreement is
signed.
<TABLE>
ANNUAL REPORT OF EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
SCHEDULE XV - STATEMENT OF INCOME
CURRENT YEAR - 1997
<CAPTION>
ACCOUNT DESCRIPTION EUA EUA EUA
Cogenex Cogenex Renova Day
Consolidated Elimin. Corpor. (Division) (Division)
INCOME
<S> <C> <C> <C> <C> <C>
415 Sales Revenue 11,463,477 5,289,037 6,056,082
417 Project Revenues 16,279,177 8,273,332
417 Consulting Revenues 3,336,443
418 Equity in Earnings 1,827,402 1,932,020 3,759,422
419 Interest Income 7,690,795 931,012 7,333,846 6,297
417 Energy Savings Project Sales 5,735,598 3,676,743
417 Turnkey Project Sales 16,630,306 10,998,629
421/450 Miscellaneous Income (105) (131,768) 193,306 75
Total Income 62,963,093 2,863,032 33,910,204 5,488,640 6,056,157
EXPENSE
904 Uncollectible accounts 439,056 110,000 290,000 37,863
910 Miscellaneous Cust Serv & Info expense 0
912 Demonstrating and selling expense 1,003,157 908,112 61,108
913 Advertising expense-merchandising 428,653 408,177 11,382
920 Salaries and wages 5,236,470 2,090,207 1,128,679 728,791
921 Office supplies and expenses 1,791,937 747,050 353,650 428,472
922 Administrative expense transferred-(credit) (337,710) (196,186)
923 Outside services employed 1,249,819 815,405 231,043 105,486
924 Property insurance 146,114 79,575 15,765 33,549
925 Injuries and damages 114,251 78,776 34,683 1
926 Employee pensions and benefits 652,462 280,985 112,179 103,750
927 Franchise Requirements 0 0
928 Regulatory commission expense 0
930.1 General advertising expenses 50 50
930.2 Miscellaneous general expenses (86,183) (135,441) 18,823 14,106
931 Rents 1,093,823 789,644 159,175 31,239
935 Maintenance of structures and equipment 73,978 57,001 14,543
403/405 Depreciation and amortization expense 1,845,093 916,265 117,375 61,571
408.1 Taxes other than income taxes 679,838 208,187 169,318 195,263
409.1 Income taxes (3,517,967) (4,484,744
410.1 Provision for deferred income taxes-(credit) 544,854 544,854
410.2 Provision for deferred income taxes 554,049 231,713
416.0 Cost of Goods Sold 10,991,860 3,936,038 3,866,245
417.1 Expenses non-utility operations 29,783,422 18,490,765
421.1 Gain-disposition of property (106,173) (88,596) (17,577)
421.2 Loss-disposition of property 15,862 4,947 1,647
426.1 Donations 2,201 2,201
426.3 Penalties 9,480 5,185 308
426.5 Other Deductions (188,057) (188,158)
427 Interest on long-term debt 8,803,555 8,803,555
428 Amortization of debt disc. and expenses 148,050 148,050
430 Interest on debt to associated companies (4,425) 931,012 (272) 61,567 95,609
431 Interest expense on short-term debt and other 1,677,692 1,471,214 314 0
432 Capitalized Interest (credit) (284,140) (134,241) 0 0
Total Expense 62,761,071 931,012 31,556,053 7,096,815 5,713,377
NET (LOSS) INCOME 202,022 1,932,020 2,354,151 (1,608,175) 342,780
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
SCHEDULE XV - STATEMENT OF INCOME
CURRENT YEAR - 1997
<CAPTION>
ACCOUNT DESCRIPTION EUA EUA EUA EUA EUA
Day1/Day2 NEM Cogenex Citizens Cogenex
(Division) Inc Canada Corporation West
INCOME
<S> <C> <C> <C> <C> <C>
415 Sales Revenue 118,358
417 Project Revenues 3,633,976 3,168,361 761,001 442,507
417 Consulting Revenues 3,336,443
418 Equity in Earnings
419 Interest Income 977,018 4,555 300,091
417 Energy Savings Project Sales 2,058,855
417 Turnkey Project Sales 1,755,204 3,876,473
421/450 Miscellaneous Income (61,718)
Total Income 118,358 3,633,976 4,083,661 5,857,203 6,677,926
EXPENSE
904 Uncollectible accounts 1,193
910 Miscellaneous Cust Serv & Info expense
912 Demonstrating and selling expense 945 32,992
913 Advertising expense-merchandising 9,094
920 Salaries and wages 178,567 34,310 254,568 821,348
921 Office supplies and expenses 147,839 (17,314) 24,821 107,419
922 Administrative expense transferred-(credit) (69,859) (71,665)
923 Outside services employed 57,452 19,947 4,775 15,711
924 Property insurance 8,289 300 1,004 7,632
925 Injuries and damages 1 1,221 (431)
926 Employee pensions and benefits 27,268 418 13,558 114,304
927 Franchise Requirements
928 Regulatory commission expense
930.1 General advertising expenses
930.2 Miscellaneous general expenses 2,474 585 8,759 4,511
931 Rents 3,955 19,051 90,759
935 Maintenance of structures and equipment 0 380 2,054
403/405 Depreciation and amortization expense 194,940 92,315 (29) 23,677 438,979
408.1 Taxes other than income taxes 34,173 407 10,321 62,169
409.1 Income taxes 683,818 447,855 84,163 (249,059)
410.1 Provision for deferred income taxes-(credit)
410.2 Provision for deferred income taxes 287,640 50,788 (16,092)
416.0 Cost of Goods Sold 312,012 2,877,565
417.1 Expenses non-utility operations 648,030 7,401 5,025,603 5,611,623
421.1 Gain-disposition of property
421.2 Loss-disposition of property 9,268
426.1 Donations
426.3 Penalties 54 3,933
426.5 Other Deductions 101
427 Interest on long-term debt
428 Amortization of debt disc. and expenses
430 Interest on debt to associated companies 31,791 258,196 479,696
431 Interest expense on short-term debt and other 163,241 38,482 4,441
432 Capitalized Interest (credit) (89,506) (60,393)
Total Expense 1,005,092 1,763,680 3,496,033 5,661,001 7,400,032
NET (LOSS) INCOME (886,734) 1,870,296 587,628 196,202 (722,106)
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
SCHEDULE XV - STATEMENT OF INCOME
CURRENT YEAR - 1996
<CAPTION>
ACCOUNT DESCRIPTION EUA EUA
Cogenex Cogenex Renova
Consolidated Eliminations Corporation (Division)
INCOME
<S> <C> <C> <C> <C> <C>
415 Sales Revenue 13,404,033 6,687,190
417 Project Revenues 17,864,123 12,713,531
417 Consulting Revenues 1,536,807
418 Equity in Earnings 20,142 2,557,227 2,577,369
419 Interest Income 9,485,089 486,800 8,807,558 12,319
417 Energy Savings Project Sales 8,742,772 6,140,878
417 Turnkey Project Sales 10,367,268 3,743,712
421/450 Miscellaneous Income (117,579) (217,854) 94,107
Total Income 61,302,655 3,044,027 33,765,194 6,793,616
EXPENSE
904 Uncollectible accounts 695,000 390,000 275,000
910 Miscellaneous Cust Serv & Info expense 0
912 Demonstrating and selling expense 2,273,325 2,150,127 27,197
913 Advertising expense-merchandising 240,755 230,912
920 Salaries and wages 6,022,787 2,930,508 1,407,752
921 Office supplies and expenses 1,658,150 629,987 323,828
922 Administrative expense transferred-(credit) (469,441) (312,045)
923 Outside services employed 946,929 529,508 271,725
924 Property insurance 265,652 152,820 56,505
925 Injuries and damages (13,480) (75,252) 60,899
926 Employee pensions and benefits 1,242,246 788,069 272,347
927 Franchise Requirements 800 800
928 Regulatory commission expense 0
930.1 General advertising expenses 3,425
930.2 Miscellaneous general expenses (180,135) (115,162) 91,356
931 Rents 1,082,466 706,092 242,771
935 Maintenance of structures and equipment 120,117 78,987 35,739
403/405 Depreciation and amortization expense 1,745,874 1,089,906 160,688
408.1 Taxes other than income taxes 700,089 261,299 185,329
409.1 Income taxes (5,883,523) (7,182,906)
410.1 Provision for deferred income taxes-(credit) (393,103) (393,103)
410.2 Provision for deferred income taxes 1,819,645 1,484,297
416.0 Cost of Goods Sold 9,671,934 5,088,230
417.1 Expenses non-utility operations 34,956,771 24,093,721
421.1 Gain-disposition of property (46,986) (24,461) (20,635)
421.2 Loss-disposition of property 186,539 186,539
426.1 Donations 2,065 2,065
426.3 Penalties 3,978 3,736
426.5 Other Deductions 376,405 361,329
427 Interest on long-term debt 9,777,404 9,777,404
428 Amortization of debt disc. and expenses 151,680 151,680
430 Interest on debt to associated companies 1,511 486,800 1,511 93,110
431 Interest expense on short-term debt and other 1,572,607 1,257,451 49
432 Capitalized Interest (credit) (707,091) (522,026)
Total Expense 67,824,395 486,800 38,402,881 8,802,802
NET (LOSS) INCOME (6,521,740) 2,557,227 (4,637,687) (2,009,186)
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
SCHEDULE XV - STATEMENT OF INCOME continued
<CAPTION>
CURRENT YEAR - 1996
ACCOUNT DESCRIPTION EUA EUA EUA EUA EUA
Day NEM Cogenex Citizens Cogenex
(Division) Inc Canada Corporation West
INCOME
<S> <C> <C> <C> <C> <C>
415 Sales Revenue 6,716,843
417 Project Revenues 3,718,917 371,660 1,060,015
417 Consulting Revenues 1,536,807
418 Equity in Earnings
419 Interest Income 985,573 4,245 162,194
417 Energy Savings Project Sales 2,601,894
417 Turnkey Project Sales 6,623,556
421/450 Miscellaneous Income 6,168
Total Income 6,716,843 3,718,917 991,741 1,912,712 10,447,659
EXPENSE
904 Uncollectible accounts 30,000
910 Miscellaneous Cust Serv & Info expense
912 Demonstrating and selling expense 71,550 24,451
913 Advertising expense-merchandising 9,843
920 Salaries and wages 920,817 35,880 168,976 558,854
921 Office supplies and expenses 538,254 (15,546) 31,626 150,001
922 Administrative expense transferred-(credit) (48,559) (108,837)
923 Outside services employed 110,739 18,848 1,852 14,257
924 Property insurance 43,470 5,164 7,693
925 Injuries and damages 555 (5,787) 6,105
926 Employee pensions and benefits 103,851 9,162 16,117 52,700
927 Franchise Requirements
928 Regulatory commission expense
930.1 General advertising expenses 3,425
930.2 Miscellaneous general expenses (164,711) 2,093 2,584 3,705
931 Rents 31,624 8,095 8,315 85,569
935 Maintenance of structures and equipment 35 2,254 3,102
403/405 Depreciation and amortization expense 80,390 118,639 20,924 22,110 253,217
408.1 Taxes other than income taxes 194,635 400 11,205 47,221
409.1 Income taxes 679,943 360,932 18,895 239,613
410.1 Provision for deferred income taxes-(credit)
410.2 Provision for deferred income taxes 292,667 15,657 27,024
416.0 Cost of Goods Sold 4,583,704
417.1 Expenses non-utility operations 675,174 1,742 1,463,325 8,722,809
421.1 Gain-disposition of property (65) (1,825)
421.2 Loss-disposition of property
426.1 Donations
426.3 Penalties 242
426.5 Other Deductions 76 15,000
427 Interest on long-term debt
428 Amortization of debt disc. and expenses
430 Interest on debt to associated companies 105,669 73,314 214,707
431 Interest expense on short-term debt and other 6,622 218,958 87,382 2,145
432 Capitalized Interest (credit) (6,622) (78,617) (99,826)
Total Expense 6,591,710 1,825,880 602,556 1,867,681 10,217,685
NET (LOSS) INCOME 125,133 1,893,037 389,185 45,031 229,974
</TABLE>
ANALYSIS OF BILLINGS
SALES & PROJECT REVENUES
ACCOUNTS 415/417
EXCESS
DESCRIPTION OR TOTAL
TOTAL COST DEFICIENCY AMOUNT
1. Utility Load Reduction Programs 23,828,775
2. Energy Management Programs 14,775,809
3. Packaged Cogeneration 40,497
4. Installation & Fabrication of Energy
Services Equipment 11,463,477
5. Consulting Fees 3,336,443
TOTAL 53,445,001
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) The following is a Summary of Consolidated Billings by Geographical
Area:
New England and New York $ 41,124,014
Outside New England and New York 20,196,908
$ 61,320,922
(A) Includes Northeast Energy Management Inc., EUA Cogenex West Corp.,
EUA Citizens, and partnership revenues of $ 3,633,976, $
6,377,835, $ 5,852,648, and $ 7,875,921 respectively.
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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
Energy Savings Project Sales - Note Receivable
EUA Cogenex 4,958,763
EUA Cogenex West 86,656
RENOVA 6,298
TOTAL 5,051,717
Energy Savings Project Sales - Lease Receivable
EUA Cogenex 1,085,999
EUA Cogenex West 201,511
TOTAL 1,287,510
Energy Related Financing Transactions
EUA Citizens 4,555
EUA Canada 977,018
TOTAL 981,573
Other Interest Income
EUA Cogenex West 11,924
EUA Cogenex 136,598
EUA EUASC Interest & Dividend Income 797
TOTAL 149,319
TOTAL INTEREST INCOME 7,470,119
Finance Fees
EUA Cogenex - From Notes & Leases 49,114
EUA Cogenex - Other Financing Fee Income 171,563
TOTAL FINANCE FEES 220,677
GRAND TOTAL INTEREST INCOME AND OTHER INCOME 7,690,796
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
ANALYSIS OF MISCELLANEOUS INCOME
INTEREST INCOME AND OTHER INCOME
ACCOUNTS 419/421
DESCRIPTION OF ITEMS AMOUNTS
421-0 MISCELLANEOUS NON-OPERATING INCOME:
EUA Cogenex:
Notes Receivable Factoring Gain 1,311,951
Federal Income Tax Current (2,985,638)
EC&S I - Management and Accounting 90,000
EC&S II - Management and Accounting 90,000
APS Cogenex - Management & Accounting 15,000
NEMI - Management & Accounting 18,000
Bad Debt Collection 500,000
Late Payment Interest Revenue 26,238
EUASC Non-OP Income 12,970
Gain on Benefit Plan Termination 746,005
Miscellaneous 43,706
(131,768)
RENOVA:
Customer Service Charges 110,860
Gain on Benefit Termination 82,446
193,306
EUA Day:
Sales Tax Adjustment 75
75
EUA Canada:
Minority Interest & Penalties (61,718)
(61,718)
TOTAL FOR MISCELLANEOUS INCOME (105)
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
ANALYSIS OF MISCELLANEOUS INCOME
INTEREST INCOME AND OTHER INCOME (Continued)
ACCOUNTS 419/421
DESCRIPTION OF ITEMS AMOUNTS
421.1 GAIN - DISP OF PROPERTY:
EUA Cogenex
Castleview Termination 1,372
UPS/Patterson Termination 11,401
Wilshire Termination 74,923
Sale of Furniture and Fixtures 900
88,596
RENOVA
Sale of Automobiles 11,294
Sale of Office Equipment 6,283
17,577
TOTAL 106,173
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
INSTRUCTIONS: Indicate each department or service function.
(See Instruction 01-3 General Structure of Accounting System: Uniform
System of Accounts.)
DEPARTMENT
DESCRIPTION OF ITEMS TOTAL OR SERVICE
AMOUNT OVERHEAD 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 EQUIPMENT NOT
403 DEPRECIATION AND AMORTIZATION EXPENSE APPLICABLE
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
TOTAL EXPENSES
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
INSTRUCTIONS: Indicate each department or service function. (See Instruction
01-3 General Structure of Accounting System: Uniform System of Accounts.)
NAME OF DEPARTMENT DEPARTMENTAL SALARY EXPENSE NUMBER
INCLUDED IN AMOUNTS BILLED TO PERSONNEL
TOTAL PARENT OTHER NON END OF
AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR
NOT APPLICABLE
TOTAL
<TABLE>
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
<CAPTION>
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a breakdown by sub-account of outside services
employed. If the aggregate amounts paid to any one payee and included within
one sub-account is less than $25,000, only the aggregate number and amount of
all such payments included within the sub-account need be shown. Provide a
subtotal for each type of service.
FROM WHOM PURCHASED ADDRESS RELATIONSHIP
A = ASSOCIATE
NA = NON
ASSOC. AMOUNT
<S> <C> <C> <C>
EUA COGENEX CORPORATION
OUTSIDE SERVICES-LEGAL:
Martha Smith Shasta Dr, Londonderry, NH NA 37,990
McDermott, Will and Emery State Street, Boston, MA NA 247,040
Amortization of previously
deferred legal charges NA 32,638
Allocation of EUA Service
Company Fees W. Bridgewater, MA A 40,149
Various (38) NA (11,755)
OUTSIDE SERVICES-ACCOUNTING:
Coopers and Lybrand Box 3026, Boston, MA NA 161,211
Allocation of EUA Service W. Bridgewater, MA A 7,983
Company Fees
Various (6) NA (16,984)
OUTSIDE SERVICES-E.D.P.:
Allocation of EUA
Service Company Fees W. Bridgewater, MA A 9,987
OUTSIDE SERVICES-OTHER:
Measuring and Monitoring
Services, Inc. Shrewsbury Ave,
Allocation of EUA Service Tinton Falls, NJ NA 23,816
Company Fees W. Bridgewater, MA A 29,099
The Madison Group Hayden Ave., Lexington, MA NA 45,950
Natek Recruiting Saratoba Spgs, NY NA 38,625
C. Popolo 120 Hartwell Rd.,
Carlisle, MA NA 42,073
Various (83) NA 127,583
TOTAL EUA COGENEX 815,405
</TABLE>
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
OUTSIDE SERVICES EMPLOYED - (Continued)
ACCOUNT 923
FROM WHOM PURCHASED ADDRESS RELATIONSHIP
A = ASSOCIATE
NA = NON
ASSOC. AMOUNT
EUA DAY
OUTSIDE SERVICES-LEGAL:
Various (3) NA 3,202
OUTSIDE SERVICES-BLDG & MAINT:
JP Services Martz Rd, Farmington, NY NA 4,755
Lucent Technologies Box 371430, Pittsburgh, PA NA 5,816
Various (14) 10,897
OUTSIDE SERVICES-OTHER:
Various (6) NA 80,816
TOTAL EUA DAY 105,486
EUA CITIZENS
OUTSIDE SERVICES-OTHER:
Various (8) NA 4,775
TOTAL EUA CITIZENS 4,775
EUA COGENEX WEST
OUTSIDE SERVICES-MANAGEMENT:
Various (1) NA 35
OUTSIDE SERVICES-LEGAL:
Various (4) NA 4,139
OUTSIDE SERVICES-ACCOUNTING:
Various (3) NA (248)
OUTSIDE SERVICES-OTHER:
Various (21) NA 11,785
TOTAL EUA COGENEX WEST 15,711
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
OUTSIDE SERVICES EMPLOYED - (Continued)
ACCOUNT 923
FROM WHOM PURCHASED ADDRESS RELATIONSHIP
A = ASSOCIATE
NA = NON
ASSOC. AMOUNT
RENOVA
OUTSIDE SERVICES-LEGAL:
Various (7) NA 17,087
OUTSIDE SERVICES-OTHER:
Firebrand Allens Ave., Providence, RI NA 18,134
Various (17) NA 80,817
OUTSIDE SERVICES-COMMISSIONS:
Spectrum 12 Kirk Dr., Pawtucket, RI NA 14,051
Energy Consultants P.O. Box 502, Folsum, CA NA 7,500
Various (19) NA 93,454
TOTAL RENOVA 231,043
EUA NEMI
OUTSIDE SERVICES-OTHER:
Various (2) NA 19,947
TOTAL EUA NEMI 19,947
EUA DAY 1/DAY 2
OUTSIDE SERVICES-OTHER:
Various (1) NA 57,452
TOTAL EUA DAY 1/DAY 2 57,452
TOTAL OUTSIDE SERVICES
EMPLOYED
1,249,819
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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
EUA Day
Miscellaneous Various 50
TOTAL 50
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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 A M O U N T
EUA Cogenex Corporation
EUA Service Corporation Allocated Expenses 58,318
Capitalization of EUA Service Corporation Allocated Expenses (218,931)
Conference Employee Training, Seminar and Conference Fees 7,067
Petty Cash Expense, Letter of Credit & Bank Charges 44,077
Filing Fees 4,854
Miscellaneous 41,448
Billing of Management Fees (88,460)
Director's Fees 9,382
Administration of Sanwa Loss 6,804
(135,441)
RENOVA
Adjusting Entries 16,500
Miscellaneous 2,323
18,825
EUA Day
Miscellaneous 14,106
EUA Day 1/Day 2
Miscellaneous 2,474
EUA NEMI
Miscellaneous 585
EUA Citizens Corporation
Miscellaneous 8,759
EUA Cogenex West Corporation
Miscellaneous 4,511
TOTAL (86,183)
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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 A M O U N T
EUA Cogenex Corporation
Building Rents 431,456
Data Processing and Other Equipment Rents 358,188
789,644
RENOVA
Building Rents 153,451
Data Processing and Other Equipment Rents 5,724
159,175
EUA Day
Building Rents 20,190
Automobile Leasing 11,049
31,259
EUA NEMI
Building Rents 3,955
Data Processing & Other Equipment Rents -----
3,955
EUA Citizens Corporation
Building Rents 16,433
Data Processing and Other Equipment Rents 2,618
19,051
EUA Cogenex West Corporation
Building Rents 57,567
Data Processing and Other Equipment Rents 33,192
90,759
TOTAL 1,093,823
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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 A M O U N T
EUA Cogenex Corporation:
Other Than U.S. Government Taxes:
State of MA Unemployment Compensation 23,086
State of NY Unemployment Compensation 5,697
MA Health Insurance 960
State of Pennsylvania Unemployment 2,208
State of New Jersey Unemployment 1,882
State of New Jersey Disability 470
State of California Unemployment and Training (1)
Property Taxes 24
State of Maryland Unemployment 51
State of Maine Unemployment 161
State of Colorado Unemployment 290
State of Washington Unemployment 2,894
State of New York Sales and Use 13,332
Payroll Taxes 287
Miscellaneous Taxes 42,645
Total 93,986
U.S. Government Taxes:
Federal Unemployment Compensation 5,269
F.I.C.A. (Net of A & G Credit) 108,932
Total 114,201
TOTAL 208,187
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
TAXES OTHER THAN INCOME TAXES - (Continued)
ACCOUNT 408.1
K I N D O F T A X A M O U N T
RENOVA:
Other Than U.S. Government Taxes:
State of MA Unemployment Compensation 778
State of RI Unemployment Compensation 29,907
MA Health Insurance 34
State of New Jersey Unemployment 577
State of New Jersey Disability 124
State of California Unemployment and Training 1,512
Property Taxes 26,010
State of Rhode Island Job Development 854
State of Texas Employment (202)
State of Illinois Unemployment 279
Miscellaneous Taxes 328
60,201
U.S. Government Taxes:
Federal Unemployment Compensation 2,495
F.I.C.A. (Net of A & G Credit) 106,622
109,117
TOTAL 169,318
EUA Day:
Other Than U.S. Government Taxes:
Property Taxes 15,181
State of New York Unemployment 16,463
State of New York Sales & Use 36,884
Miscellaneous Taxes 290
68,818
U.S. Government Taxes:
Federal Unemployment Compensation 2,624
F.I.C.A. (Net of A & G Credit) 123,821
126,445
TOTAL 195,263
EUA Day 1/Day 2:
Other Than U.S. Government Taxes:
Property Taxes 2,466
State of New York Unemployment 2,564
State of New York Sales & Use 7,780
Miscellaneous Taxes 21
12,831
U.S. Government Taxes:
Federal Unemployment Compensation 408
F.I.C.A. (Net of A & G Credit) 20,934
21,342
TOTAL 34,173
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
TAXES OTHER THAN INCOME TAXES
ACCOUNT 408.1
K I N D O F T A X A M O U N T
EUA NEMI:
Other Than U.S. Government Taxes:
Property Taxes 270
Miscellaneous Taxes 137
TOTAL 407
EUA Citizens:
Other Than U.S. Government Taxes:
State of MA Unemployment Compensation 5,465
State of MA Heath Insurance 62
Property Taxes 70
State of California Unemployment and Training 735
State of North Carolina Unemployment 79
Miscellaneous Taxes 1,026
7,437
U.S. Government Taxes:
Federal Unemployment Compensation 840
F.I.C.A. (Net of A & G Credit) 2,044
2,884
TOTAL 10,321
EUA Cogenex West Corporation:
Other Than U.S. Government Taxes:
Property Taxes 3,814
State of Colorado Unemployment 837
State of Texas Unemployment 121
Miscellaneous Taxes 1,055
5,827
U.S. Government Taxes:
Federal Unemployment Compensation 645
F.I.C.A. (Net of A & G Credit) 55,697
56,342
TOTAL 62,169
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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
EUA Cogenex:
Miscellaneous (9) 2,201
TOTAL 2,201
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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
EUA Cogenex Corporation:
Reverse APS Res. (193,380)
Miscellaneous (13) 5,222
(188,158)
EUA Cogenex West Corporation Miscellaneous (3) 101
TOTAL (188,057)
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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 31.
<TABLE>
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
<CAPTION>
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.
CONTRACT/PROJECT REASON FOR BOOK VALUE - GAIN/(LOSS)
TERMINATION NET AT CLOSE
OF YEAR
<S> <C> <C> <C>
212 West Seneca Development Ctr. Voluntary/Buyout 3,376,410 758,793
382 Medical College of Pennsylvania Voluntary/Buyout 547,372 (166,504)
762 U.S. Dept. of Navy
Naval Const. Bat. - Port Hueneme Voluntary/Buyout 99,980 53,712
Naval Air Station - Long Beach Voluntary/Buyout 110,077 52,352
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
SCHEDULE OF PROJECT VALUES
<CAPTION>
DESCRIPTION BOOK VALUE - ESTIMATED
NET AT FUTURE
CLOSE OF YEAR VALUE
<S> <C> <C>
EUA Citizens 150 PG&E (1) 2,895,544 4,692,838
TOTAL 2,895,544 4,692,838
EUA Cogenex West Huguley Memorial Hospital (2) 378,820 (D) 378,820
Propp Realty, Inc. (1) 103,019 (D) 103,019
Denver Corporate Center (1) 174,290 (D) 174,290
UNC Plt. Project Equipment (1) 7,497 (D) 7,497
TOTAL 663,626 663,626
EUA Cogenex
130 Jackson Brook Institute (2) 110,532 283,696
305 Rowes Wharf (1) 127,751 245,720
393 Hackensack Medical Center (2) 113,783 159,688
570 Pepsi-Cola Metropolitan Bottling Co. (1) 248,258 410,780
584 Orange County Community College (1) 486,186 975,003
655 Department of Energy Building-Lighting (1) 342,747 816,978
676 Dominican Convent (1) 104,554 468,384
696 MEM Company (1) 144,857 455,255
759 Chester Union Free School District (1) 108,930 213,348
762 U.S. Department of Navy (2) 194,134 327,210
763 Com/Electric- All Projects (1) 564,194 767,449
777 Barnert Hospital (1) 127,354 507,237
806 Nanuet Public Schools (1) 131,258 253,937
811 Hornick (1) 107,091 160,849
821 St. Lukes Hospital (1) 112,369 148,958
868 UPS (1) 191,663 1,736,641
871 Orange County Community College (1) 276,437 507,512
922 Barry University (2) 850,823 786,182
955 Ideal Aluminum Products (1) 189,130 (A) 154,103
1030 Stull Closure II (1) 212,016 244,703
1042 Matsushita Electric Corp. (1) 159,540 380,475
1047 P.F. Labs (1) 514,436 503,855
1067 Motorola (1) 116,139 46,488
1150 Meadowlands Hospital Medical (1) 192,418 299,445
1168 Century Towers (2) 117,276 175,398
1312 Lodi Unified School Dist (2) 321,123 264,000
1575 Washoe County School District (2) 406,759 291,926
TOTAL 6,571,758 11,585,220
(1) Utility Load Reduction Programs (A) Projects expected to be written-down
during 1997.
(2) Energy Management Programs (B) Negotiating new contract terms
retroactive billing recorded in 1997.
(C) Includes recovery of estimated fuel
costs paid by the company.
(D) Proforma information unavailable-
projected full recovery method.
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
SCHEDULE OF ESTIMATED KILOWATTS SAVED
<CAPTION>
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.
ESTIMATED
UTILITY SPONSOR ESTIMATED CURRENT CUMULATIVE
YEAR KILOWATTS SAVED KILOWATTS SAVED
<S> <C> <C>
Commonwealth Electric Co. (1) -0- 5,291
Public Service Electric & Gas Co. (3) 24,000 40,493
Orange and Rockland Utilities Inc. (2) 151 2,821
Central Maine Power Company (1) -0- 10,558
Rochester Gas and Electric Corp. (2) 1,185 7,152
Rockland Electric Company (3) -0- 381
Massachusetts Electric (1) -0- 88
Boston Edison (1) -0- 21,230
Consolidated Edison (2) -0- 5,643
Jersey Central Power and Light (3) 3,748 7,604
TOTAL 29,084 101,261
(1) New England
(2) New York
(3) Outside New England and New York
</TABLE>
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
PROJECT INCOME STATEMENT
YTD 1997
PROJECT/DESCRIPTION
BUDGET ACTUALS VARIANCE
868 - UPS
Gross Revenue 107,544 191,322 83,778
Expenses
Maintenance 12,000 69,916 57,916
Other Direct Costs 0 11,221 11,221
Depreciation/amort 36,156 202,983 166,827
Total Expenses 48,156 284,120 235,964
Net Income (Loss) 59,388 (92,798) (152,186)
Explanation: Capital costs were higher than anticipated.
YTD 1997
PROJECT/DESCRIPTION
BUDGET ACTUALS VARIANCE
955 - Ideal Aluminum Products
Gross Revenue 25,320 27,188 1,868
Expenses
Maintenance 0 1,303 1,303
Depreciation/amort 29,580 29,854 274
Total Expenses 29,580 31,157 1,577
Net Income (Loss) (4,260) (3,969) 291
Explanation: Capital costs were higher than anticipated.
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
PROJECT INCOME STATEMENT
YTD 1997
PROJECT/DESCRIPTION BUDGET ACTUALS VARIANCE
1407 - P.F. Labs
Gross Revenue 119,004 28,600 (90,404)
Expenses
Program Management 368 368
Maintenance 8,004 2,846 (7,307)
Other Direct Costs 63,000 38,820 (24,180)
Total Expenses 71,004 42,731 (28,273)
Net Income (Loss) 48,000 (14,131) (62,131)
Explanation: Portion of budgeted revenues not realized due to timing.
YTD 1997
PROJECT/DESCRIPTION BUDGET ACTUALS VARIANCE
1067 - Motorola
Gross Revenue 15,168 6,268 (8,900)
Expenses
Maintenance 996 1,200 204
Depreciation/amort 8,004 40,453 32,449
Total Expenses 9,000 41,653 36,653
Net Income (Loss) 6,168 (35,385) (41,553)
Explanation: Capital costs were higher than anticipated.
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
PROJECT INCOME STATEMENT
YTD 1997
PROJECT/DESCRIPTION BUDGET ACTUALS VARIANCE
1150 - Meadowlands Hospital
Medical
Gross Revenue 45,324 30,977 (14,347)
Expenses
Maintenance 20,000 20,000
Depreciation/amort 6,504 960 (5,544)
Other Direct Costs 0 31,320 31,320
Total Expenses 6,504 52,280 45,776
Net Income (Loss) 38,820 (21,303) (60,123)
Explanation: Capital costs were higher than anticipated.
YTD 1997
PROJECT/DESCRIPTION BUDGET ACTUALS VARIANCE
1168 - Century Towers
Gross Revenue 75,996 45,335 (30,661)
Expenses
Maintenance 4,363 4,363
Depreciation/amort 44,544 45,384 840
Total Expenses 44,544 49,747 (29,821)
Net Income (Loss) 31,452 (4,412) 5,203
Explanation: Savings level lower than anticipated.
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
ORGANIZATIONAL STRUCTURE
EUA COGENEX CORPORATION
President
Executive Vice President
General Manager
Assistant Comptroller
Manager of Human Resources
Director of Commercial Finance
Director of Project Development
Vice President of Business Development
Director of Sales - Region 1
Director of Sales - Region 2
Manager Engineering and Construction - Team 1
Manager Engineering and Construction - Team 2
Manager Engineering and Construction - Team 3
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
ORGANIZATIONAL STRUCTURE
RENOVA
Vice President/General Manager
Manager Administration and Accounting
Manager of Engineering & Manufacturing
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
ORGANIZATIONAL STRUCTURE
EUA DAY
General Manager
Business Manager
Operations Manager
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
ORGANIZATIONAL STRUCTURE
EUA CITIZENS CORPORATION
President
Vice President
Project Manager - Housing Operations
Project Manager - Utility Program
Senior Construction Manager
Senior Financial Analyst
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
ORGANIZATIONAL STRUCTURE
EUA COGENEX WEST
President
Director of Engineering - Lighting
Director of Engineering - Mechanical
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1997
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 Burlingame, Jr.
(Signature of Signing Officer)
Richard Burlingame, Jr., Assistant Comptroller
(Printed Name and Title of Signing Officer)
Date: May 15, 1998
<TABLE> <S> <C>
<ARTICLE> OPUR2
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<BOOK-VALUE> PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 58889
<TOTAL-INVESTMENTS> 73662
<TOTAL-CURRENT-ASSETS> 46998
<TOTAL-DEFERRED-DEBITS> 7867
<OTHER-ASSETS-AND-DEBITS> 8911
<TOTAL-ASSETS-AND-DEBITS> 196327
<TOTAL-PROPRIETARY-CAPITAL> 47603
<TOTAL-LONG-TERM-DEBT> 84100
<NOTES-PAYABLE> 40694
<NOTES-PAYABLE-ASSOCIATE-COMP> 0
<OTHER-CURR-AND-ACCRUED-LIAB> 15263
<TOTAL-DEFERRED-CREDITS> 3590
<DEFERRED-INCOME-TAX> 5077
<TOT-LIABIL-AND-PROPRIET-CAP> 196327
<SERVICES-ASSOCIATE-COMPANIES> 0
<SERVICES-NON-ASSOCIATE-COMP> 53445
<MISC-INCOME-OR-LOSS> 9518
<TOTAL-INCOME> 62963
<SALARIES-AND-WAGES> 5236
<EMPLOYEE-PENSION-AND-BENEFIT> 652
<OTHER-EXPENSES> 56873
<TOTAL-EXPENSES> 62761
<NET-INCOME> 202
<TOTAL-EXPENSES-DIRECT-COST> 62761
<TOTAL-EXPENSES-INDIRECT-COST> 0
<TOT-EXP-DIRECT-AND-INDIRECT> 62761
<PERSONNEL-END-OF-YEAR> 68
</TABLE>
