FORM U-13-60
Mutual and Subsidiary service companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1998 and Ending December 31, 1998
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
EUA COGENEX CORPORATION
(Exact Name of Reporting Company)
A Subsidiary SERVICE COMPANY
("Mutual" or "Subsidiary")
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1998 and Ending December 31, 1998
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, Jr., 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 92
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 13-20
ACCOUNTS RECEIVABLE FROM ASSOCIATE
COMPANIES Schedule V 21
ACCOUNTS RECEIVABLE AGING Schedule VI 22-24
ACCUMULATED PROVISION FOR UNCOLLECTIBLE Schedule VII 25
ACCOUNTS
MISCELLANEOUS CURRENT AND ACCRUED ASSETS Schedule VIII 26
MISCELLANEOUS DEFERRED DEBITS Schedule IX 27-28
PROPRIETARY CAPITAL Schedule XI 29
LONG-TERM DEBT Schedule XII 30
CURRENT AND ACCRUED LIABILITIES Schedule XIII 31-34
NOTES TO FINANCIAL STATEMENTS Schedule XIV 35-54
COMPARATIVE INCOME STATEMENT Schedule XV 55-56
ANALYSIS OF BILLING - SALES & PROJECT
REVENUES Accounts 415/417 57
ANALYSIS OF MISCELLANEOUS INCOME Accounts 419/421 58-61
SCHEDULE OF EXPENSE DISTRIBUTION Schedule XVII 62
DEPARTMENTAL ANALYSIS OF SALARIES Account 920 63
OUTSIDE SERVICES EMPLOYED Account 923 64-68
GENERAL ADVERTISING EXPENSES Account 930.1 69
MISCELLANEOUS GENERAL EXPENSES Account 930.2 70
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
SCHEDULE OR PAGE
ACCT. NO. NO.
Description of Schedules and Accounts
RENTS Account 931 71
TAXES OTHER THAN INCOME Account 408 72-74
DONATIONS Account 426.1 75
OTHER DEDUCTIONS Account 426.5 76
NOTES TO STATEMENT OF INCOME Schedule XVIII 77
SCHEDULE OF TERMINATED CONTRACTS 78
SCHEDULE OF PROJECT VALUES 79-80
SCHEDULE OF ESTIMATED KILOWATTS SAVED 81
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Description of Reports or Statements
PROJECT INCOME STATEMENT 82-85
ORGANIZATIONAL STRUCTURE 86-91
SIGNATURE CLAUSE 92
<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 - 1998
ACCOUNT ASSETS AND OTHER DEBITS
<CAPTION>
EUA EUA EUA EUA
Cogenex Cogenex Day DayMetrix
Consol Elimin (Division) (Division) (Division)
<S> <C> <C> <C> <C> <C> <C>
COMPANY PROPERTY
121 Company Property (Schedule II) 113,770,215 57,120,876 2,099,195 1,150,027
107 Construction work in progress (Schedule II) 6,715,535 5,027,475 456,945
Total Property 120,485,750 62,148,351 2,556,140 1,150,027
122/111 Less accumulated provision for depreciation
and amortization company property (Schedule II) (57,299,981) (33.218,762) (971,799) (673,919)
Net Company Property 63,185,769 28,929,589 1,584,341 476,108
INVESTMENTS
123 Investments in associated companies (Sched IV) 516,949 41,241,600 41,758,549
141 Other Investments (Schedule IV) 40,934,266 33,084,605
Total Investments 41,451,215 41,241,600 74,843,154
CURRENT AND ACCRUED ASSETS
131 Cash 640,721 (338,818) 54,989
134 Special Deposits 1,946,437 115,162 1,133,885
135 Working Funds 195,262 12,910 170,243
136 Temporary cash investments (Schedule IV)
141 Notes Receivable and Lease Receivable 16,379,691 15,724,861 28,530,317 2,324,535
142-3/173 Accounts Receivable (Schedule VI) 24,914,434 14,243,142 2,000,641 (293)
144 Acc. provision for uncoll. accts (Sched VII) (693,214) (274,261) (40,769)
146 Acc. rec. from associate cos. (Sched V&VI) 2,117,667 9,190,971 9,063,420 643,484
152 Fuel stock expenses undistributed
154 Materials and Supplies 827,311 15,354 197,874 486,706
163 Store expense undistributed
165 Prepayments (1,506,211) 1,711,595 165,616 15,811
171 Interest Receivable 3,355,951 3,348,813
174 Misc. current and accrued assets (Sched. VIII) 189,071 158,888 30,183
Total Current and Accrued Assets 48,367,120 26,627,427 55,040,543 6,530,876 486,413
DEFERRED DEBITS
181 Unamortized debt expense 271,606 271,606
184 Clearing Accounts
186 Misc. def. debits (Schedule IX) 3,912,066 2,518,735 1,118
188 Research, development, or demonstration
expenditures (Schedule X)
Total Deferred Debits 4,183,672 0 2,790,341 1,118
190 ACCUMULATED DEFERRED INCOME TAX BENEFIT 8,402,791 4,079,917
TOTAL ASSETS AND OTHER DEBITS 165,590,567 67,869,027 165,683,544 8,116,335 962,522
</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 - 1998
ACCOUNT ASSETS AND OTHER DEBITS (CONTINUED)
<CAPTION>
EUA EUA EUA EUA EUA
NEMI Cogenex Citizens Cogenex EC&S I
Inc Canada Corporation Corporation (Partnership)
<S> <C>
COMPANY PROPERTY
121 Company Property (Schedule II) 8,993,365 42,827 4,027,992 7,163,116 12,124,594
107 Construction work in progress (Schedule II) 0 0 645,054 423,477 (139,079)
Total Property 8,993,365 42,827 4,673,046 7,586,593 11,985,515
122/111 Less accumulated provision for depreciation
and amortization company property (Sched II) (4,516,266) (15,195) (1,087,744) (1,771,475) (3,237,111)
Net Company Property 4,477,099 27,632 3,585,302 5,815,118 8,748,404
INVESTMENTS
123 Investments in associated companies (Sched IV)
141 Other Investments (Schedule IV) (22,777) 4,785,988 1,270,462
Total Investments 0 (22,777) 0 4,785,988 1,270,462
CURRENT AND ACCRUED ASSETS
131 Cash 17,755 317,043 23,490 (180,259) 488,411
134 Special Deposits 365 0 329,937 72,969
135 Working Funds 3,997 8,112
136 Temporary cash investments (Schedule IV)
141 Notes Receivable and Lease Receivable 32,835 444,980 145,841
142-3/173 Accounts Receivable (Schedule VI) 698,298 301,835 1,925,107 1,451,633 1,600,622
144 Acc. provision for uncoll. accts (Sched VII) (17,833) (285,158)
146 Acc. rec. from associate cos. (Sched V&VI) 67,253 124,415 285,607
152 Fuel stock expenses undistributed
154 Materials and Supplies 127,377
163 Store expense undistributed
165 Prepayments 428 4,950 18,579
171 Interest Receivable 7,137
174 Misc. current and accrued assets (Sched. VIII)
Total Current and Accrued Assets 716,418 652,141 2,024,797 2,314,078 2,308,292
DEFERRED DEBITS
181 Unamortized debt expense
184 Clearing Accounts
186 Misc. def. debits (Schedule IX) 1,062,379 10,924 202,351 64,924 481
188 Research, development, or demonstration
expenditures (Schedule X) 1,062,379 10,924 202,351 64,924 481
Total Deferred Debits
190 ACCUMULATED DEFERRED INCOME TAX BENEFIT 3,454,847 868,027
TOTAL ASSETS AND OTHER DEBITS 9,710,743 667,920 5,812,450 13,848,135 12,327,639
</TABLE>
<TABLE>
CURRENT YEAR - 1998
ACCOUNT ASSETS AND OTHER DEBITS (CONTINUED)
<CAPTION>
EUA EUA EUA EUA
EC&S II FRC II WestCoast MUPA
(Part) (Part) (Part) (Part)
<S> <C> <C> <C> <C> <C>
COMPANY PROPERTY
121 Company Property (Schedule II) 18,420,499 159,815 2,471,887 (3,978)
107 Construction work in progress (Schedule II) 301,663
Total Property 18,722,162 159,815 2,471,887 (3,978)
122/111 Less accumulated provision for depreciation
and amortization company property (Sched II) (9,590,532) (77,490) (2,139,688)
Net Company Property
9,131,630 82,325 332,199 (3,978)
INVESTMENTS
123 Investments in associated companies (Sched IV)
141 Other Investments (Schedule IV)
Total Investments 1,815,988
1,815,988
CURRENT AND ACCRUED ASSETS
131 Cash
134 Special Deposits 139,837 52,909 65,364
135 Working Funds 270,303 23,816
136 Temporary cash investments (Schedule IV)
141 Notes Receivable and Lease Receivable
142-3/173 Accounts Receivable (Schedule VI) 508,518 117,526
144 Acc. provision for uncoll. accts (Sched VII) 1,994,897 (35,602) 749,706 (15,552)
146 Acc. rec. from associate cos. (Sched V&VI) (75,193)
152 Fuel stock expenses undistributed 1,124,459
154 Materials and Supplies
163 Store expense undistributed
165 Prepayments
171 Interest Receivable
174 Misc. current and accrued assets (Sched. VIII)
Total Current and Accrued Assets
3,962,821 17,307 956,412 (15,552)
DEFERRED DEBITS
181 Unamortized debt expense
184 Clearing Accounts
186 Misc. def. debits (Schedule IX)
188 Research, development, or demonstration 35,602 15,552
expenditures (Schedule X)
Total Deferred Debits 0 35,602 15,552
190 ACCUMULATED DEFERRED INCOME TAX BENEFIT
TOTAL ASSETS AND OTHER DEBITS 14,910,439 135,234 1,288,611 (3,978)
</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 - 1998
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL
<CAPTION>
EUA EUA EUA EUA
Cogenex Cogenex Day DayMetrix
Consol Elim. Corp. (Division) (Division)
PROPRIETARY CAPITAL
<S> <C> <C> <C> <C> <C> <C>
201 Common Stock Issued (Schedule XI) 1,400 100
204 Red. preferred stock of subs.(Sched XI) 175
211 Misc. paid-in-capital (Sched XI) 47,046,923 12,283,341 45,949,392 1,097,531
215 App. retained earnings (Sched XI)
216 Unapprop. retained earnings (Sched XI) 1,314,196 28,966,859 2,962,386 777,100 (2,336,588)
Total Proprietary Capital 48,361,294 41,251,600 48,911,878 1,874,631 (2,336,588)
LONG-TERM DEBT
223 Advances from ass. cos (Schedule XII)
224 Other long-term debt (Schedule XII) 77,400,000 77,400,000
225 Unamortized premium on long-term debt
226 Unamortized discount of long-term debt
Total Long-Term Debt 77,400,000 77,400,000
CURRENT AND ACCRUED LIABILITIES
224 Current Maturities of Long-term debt 6,700,000 6,700,000
231 Notes payable 16,108,438 15,724,860 16,160,000 1,801,059 3,001,070
232 Accounts payable 3,909,116 2,422,939 830,665
233 Notes payable to associate companies
234 Accounts payable - associated companies 1,132,715 8,940,972 3,343,607 2,880,581 230,003
235 Customer Deposits
236 Taxes accrued 62,725 5,683 14,457
237 Interest accrued 1,187,797 1,711,595 1,187,797 479,302 68,037
238 Dividends declared 250,000
241 Tax collections payable (Refund) (127,744) (64,614) (36,889)
242 Misc. curr. and acc. liab. (Sch. XIII) 3,078,596 2,481,166 7,880
Total Current and Acc. Liabil. 32,051,643 26,627,427 32,236,578 5,977,055 3,299,110
DEFERRED CREDITS
253/228 Other deferred credits 3,706,643 (10,000) 3,198,323 264,649
255 Acc. deferred inv. tax credits
Total Deferred Credits 3,706,643 (10,000) 3,198,323 264,649
282/283 ACCUMULATED DEFERRED INCOME TAXES 4,070,987 3,936,766
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 165,590,567 67,869,027 165,683,545 8,116,335 962,522
</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 - 1998
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL
<CAPTION>
EUA EUA EUA EUA EUA
NEMI Cogenex Citizens Cogenex EC&S I
PROPRIETARY CAPITAL Inc Canada Corp. Corp. (Part.)
<S> <C>
201 Common Stock Issued (Schedule XI)
204 Red. preferred stock of subs.(Sched XI) 1,100 100 100
211 Misc. paid-in-capital (Sched XI) 75 100
215 App. retained earnings (Sched XI) 7,052,050 (290,675) 5,521,966
216 Unapprop. retained earnings (Sched XI)
Total Proprietary Capital 2,081,177 997,479 445,507 (864,998) 11,807,218
9,134,327 706,904 445,682 4,657,068 11,807,218
LONG-TERM DEBT
223 Advances from ass. cos (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
231 Notes payable 150,000 (52,320) 3,718,659 7,054,830
232 Accounts payable 5,017 82,901 236,176 163,022 21,600
233 Notes payable to associate companies
234 Accounts payable - associated companies 171,081 (174,167) 681,444 1,275,837 199,278
235 Customer Deposits
236 Taxes accrued 34,173 179 8,233
237 Interest accrued 450,613 713,643
238 Dividends declared 250,000
241 Tax collections payable (Refund) (16,873) (9,368)
242 Misc. curr. and acc. liab. (Sch. XIII) 105,096 449 214,879
Total Current and Acc. Liabil. 576,098 (109,413) 5,175,294 9,206,646 435,757
DEFERRED CREDITS
253/228 Other deferred credits (8) 70,429 41,865 135 84,664
255 Acc. deferred inv. tax credits
Total Deferred Credits (8) 70,429 41,865 135 84,664
282/283 ACCUMULATED DEFERRED INCOME TAXES 326 149,609 (15,714)
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 9,710,743 667,920 5,812,450 13,848,135 12,327,639
</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 - 1998
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL (CONTINUED)
<CAPTION>
EUA EUA EUA EUA
EC&S II FRC II WestCo MUPA
(Part.) (Part.) (Part.) (Part.)
PROPRIETARY CAPITAL
<S> <C>
201 Common Stock Issued (Schedule XI)
204 Red. preferred stock of subs.(Sched XI)
211 Misc. paid-in-capital (Sched XI)
215 App. retained earnings (Sched XI)
216 Unapprop. retained earnings (Sched XI) 13,339,067 30,591 1,018,396 23,720
Total Proprietary Capital 13,339,067 30,591 1,018,396 23,720
LONG-TERM DEBT
223 Advances from ass. cos (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
231 Notes payable 146,796
232 Accounts payable
233 Notes payable to associate companies 1,141,249 82,325 246,398 (3,949)
234 Accounts payable - associated companies
235 Customer Deposits
236 Taxes accrued
237 Interest accrued
238 Dividends declared
241 Tax collections payable (Refund)
242 Misc. curr. and acc. liab. (Sch. XIII) 246,741 22,318 23,817 (23,750)
Total Current and Acc. Liabil. 1,534,786 104,643 270,215 (27,699)
DEFERRED CREDITS
253/228 Other deferred credits 36,586
255 Acc. deferred inv. tax credits
Total Deferred Credits 36,586
282/283 ACCUMULATED DEFERRED INCOME TAXES
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 14,910,439 135,234 1,288,611 (3,978)
</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 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 (CONTINUED)
<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 Elimin 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 continue
Give balance sheet of the companies as of December 31
CURRENT YEAR - 1997
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL (CONTINUED)
<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 AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1998
<CAPTION>
SCHEDULE II
COMPANY PROPERTY
DESCRIPTION BALANCE AT RETIREMENTS OTHER BALANCE AT
BEGINNING ADDITIONS OR SALES CHANGES CLOSE OF YEAR
OF YEAR
<S> <C> <C> <C> <C> <C>
COMPANY PROPERTY
ACCOUNT
121 LEASEHOLD IMPROVEMENTS:
EUA COGENEX 38,157 38,157
RENOVA 70,851 (70,851) 0
EUA CITIZENS 3,490 3,490
EUA COGENEX WEST 41,214 41,214
121 BUILDINGS:
EUA DAY 837,487 182,846 (610) 1,019,723
121 EQUIPMENT:
EUA COGENEX 30,652,591 15,664,810 (A) (1,652,474) 44,664,927
RENOVA 714,836 (714,836) 0
EUA NEMI 8,463,515 8,463,515
EUA CITIZENS 3,401,367 420,092 3,821,459
EUA COGENEX WEST 1,013,798 (137,359) 876,439
EC&S I 11,893,731** 87,559 (100,000) 11,881,290
EC&S II 18,230,726** 44,552 18,275,278
EUA/FRC II 77,490** 77,490
WESTCOAST, LP 2,596,864** (557,943) 2,038,921
121 COMPUTER EQUIPMENT AND
COMPUTER NETWORK:
EUA COGENEX 669,803 400 (400) 669,803
RENOVA 226,741 (226,741) 0
EUA DAY 2,426 2,426
EUA NEMI 1,724 (440) 1,284
EUA CITIZENS 21,909 21,909
EUA COGENEX WEST 230,334 230,334
EUA COGENEX CANADA 0 4,122 4,122
121 SOFTWARE DEVELOPMENT
COSTS:
DAYMETRIX: 1,150,027 1,150,027
121 OFFICE FURNITURE, TOOLS AND
EQUIPMENT:
EUA COGENEX 292,309 625 (151,369) 141,565
RENOVA 451,322 (451,322) 0
EUA DAY 711,099 253,927 (73,823) 891,203
EUA NEMI 28,126 440 28,566
EUA CITIZENS 10,202 10,202
EUA COGENEX WEST 54,448 3,250 57,698
EUA COGENEX CANADA 0 1,532 1,532
121 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE
EQUIPMENT:
EUA COGENEX 0 0
RENOVA 25,466 (25,466) 0
EUA DAY 185,843 333 (333) 185,843
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1998
<CAPTION>
SCHEDULE II
COMPANY PROPERTY- (Continued)
DESCRIPTION BALANCE AT RETIREMENTS OTHER BALANCE AT
BEGINNING OR SALES CHANGES CLOSE OF YEAR
OF YEAR ADDITIONS
<S> <C> <C> <C> <C> <C>
301 ORGANIZATION
EUA COGENEX 554,034 554,034
EUA CITIZENS 72,250 72,250
EUA COGENEX WEST 7,622 7,622
EUA COGENEX CANADA 0 37,173 37,173
WESTCOAST, LP 103,463** 103,463 103,463
302/303 MISCELLANEOUS PLANT AND
INTANGIBLE PLANT:
EUA COGENEX 29,336,920 356,525 (18,641,055) (A) 11,052,390
EUA NEMI 500,000 500,000
EUA CITIZENS 90,847 98,682 (90,847) 98,682
EUA COGENEX WETS 5,949,809 5,949,809
EC&S I 79,994** 163,310 243,304
EC&S II 145,221** 145,221
EUA/FRC II 0 82,325 82,325
WESTCOAST, LP 125,763** 202,740 329,503
MUPA 0 (3,978) (3,978)
SUB-TOTAL 119,064,819 17,605,243 (22,899,847) 113,770,215
107 CONSTRUCTION WORK IN
PROGRESS:
EUA COGENEX 9,078,204 41,780,071 (45,830,800) 5,027,475
EUA DAY 239,477 531,132 (313,664) 456,945
EUA CITIZENS 701,949 3,883,079 (3,939,974) 645,054
EUA COGENEX WEST (557,485) 3,354,853 (2,373,891) 423,477
EUA COGENEX CANADA 0 836 (836) 0
EC&S I 153,407** 36,098 (328,584) (139,079)
EC&S II 830,387** 800,124 (1,328,848) 301,663
TOTAL 129,510,758 67,991,436 (77,016,444) 120,485,750
A) PROVEN ALTERNATIVE PORTFOLIO RECLASSED TO TANGIBLE PROPERTY IN 1998
** PARTNERSHIPS TREATED AS CONSOLIDATED SUBSIDIARIES BY COGENEX IN 1998.
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:
SUB-ACCOUNT DESCRIPTION NET CHANGE BALANCE AT CLOSE OF YEAR
(1) Utility Load Reduction Programs 47,709,833 77,317,863
(2) Energy Management Programs (1,141,785) 12,781,456
(3) Energy Management Equipment (714,836) 0
TOTAL 45,853,212 90,099,319
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" BEGINNING ON PAGE 35
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1998
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF COMPANY PROPERTY
<CAPTION>
BALANCE AT ADDITIONS RETIREMENTS OTHER BALANCE AT
DESCRIPTION BEGINNING OF OR SALES CHANGES CLOSE OF
YEAR YEAR
<S> <C> <C> <C> <C> <C>
ACCOUNT
111 ORGANIZATION:
EUA COGENEX 276,810 111,028 387,838
EUA CITIZENS 36,375 16,557 52,932
EUA COGENEX WEST 7,622 7,622
EUA COGENEX CANADA 0 14,868 14,868
WESTCOAST, LP 46,548** 20,688 67,236
111 MISCELLANEOUS IN-
TANGIBLE PLANT:
EUA COGENEX 6,042,848 1,754,032 (2,746,090) (A) 5,050,790
RENOVA 186,000 (186,000) 0
EUA NEMI 391,651 99,996 491,647
EUA CITIZENS 0 17,740 17,740
EUA COGENEX WEST 650,988 429,633 1,080,621
EC&S I 18,050** 5,098 23,148
EC&S II 64,965** 16,482 81,447
WESTCOAST, LP 126,635** 128 126,763
122 LEASEHOLD
IMPROVEMENTS:
EUA COGENEX 32,102 4,001 (326) 35,777
RENOVA 70,608 (70,608) 0
EUA CITIZENS 1,803 698 2,501
EUA COGENEX WEST 32,848 8,243 41,091
122 OFFICE FURNITURE AND
FIXTURES:
EUA COGENEX 132,245 7,889 (400) 139,734
RENOVA 333,313 (333,313) 0
EUA DAY 550,738 71,247 (6,000) 615,985
EUA NEMI 28,126 440 28,566
EUA CITIZENS 5,565 2,040 7,605
EUA COGENEX WEST 31,227 10,697 41,924
EUA COGENEX CANADA 0 51 51
122 COMPUTER EQUIPMENT:
EUA COGENEX 479,896 101,701 581,597
RENOVA 29,629 (29,629) 0
EUA DAY 1,375 485 1,860
EUA NEMI 1,724 (440) 1,284
EUA CITIZENS 10,819 4,382 15,201
EUA COGENEX WEST 162,930 35,336 198,266
EUA COGENEX CANADA 0 276 276
121 SOFTWARE DEVELOPMENT
COSTS:
DAYMETRIX 443,911 230,008 673,919
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1998
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF COMPANY PROPERTY (Continued)
<CAPTION>
BALANCE AT ADDITIONS RETIREMENTS OTHER BALANCE AT
DESCRIPTION BEGINNING OF OR SALES CHANGES CLOSE OF
YEAR YEAR
<S> <C> <C> <C> <C> <C>
122 EQUIPMENT:
EUA COGENEX 21,454,596 6,536,220 (A) (967,790) 27,023,026
RENOVA 290,424 (290,424) 0
EUA NEMI 3,497,342 497,427 3,994,769
EUA CITIZENS 505,823 485,942 991,765
EUA COGENEX WEST 350,170 95,931 (44,150) 401,951
EC&S I 2,413,642** 800,321 3,213,963
EC&S II 7,479,040** 2,045,553 (15,508) 9,509,085
EUA/FRC II 77,490** 77,490
WESTCOAST, LP 1,977,541** 175,604 (207,456) 1,945,689
122 AUTOMOBILES, OTHER
VEHICLES & RELATED
GARAGE EQUIPMENT
RENOVA 19,912 (19,912) 0
EUA DAY 173,212 4,984 178,196
122 STRUCTURES AND
IMPROVEMENTS
EUA DAY 151,532 24,226 175,758
TOTALS 48,588,075 13,629,952 (4,918,046) 0 57,299,981
(A) PROVEN ALTERNATIVE PORTFOLIO RECLASSED TO TANGIBLE PROPERTY IN 1998.
** PARTNERSHIPS TREATED AS CONSOLIDATED SUBSIDIARIES BY COGENEX IN 1998.
</TABLE>
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1998
SCHEDULE IV
INVESTMENTS
FILED UNDER CONFIDENTIAL TREATMENT REQUEST
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1998
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 West 0 12,747
EUA Cogenex Corporation 0 2,104,920
0 2,117,667
TOTAL 0 2,117,667
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1998
SCHEDULE VI
ACCOUNTS RECEIVABLE AGING
INSTRUCTIONS: Complete the following schedule concerning the aging of
accounts receivable for Account 143 - Accounts Receivable and
Account 146 - Accounts Receivable from Associated companies
DESCRIPTION BALANCE AT BALANCE AT
BEGINNING OF END OF YEAR
YEAR
ACCOUNT 143 - ACCOUNTS RECEIVABLE
EUA Cogenex Corporation
0 - 30 Days 6,334,353 9,118,131
31 - 60 Days 522,448 1,267,861
62 - 90 Days 801,209 420,579
91 - Over 7,731,795 3,436,571
15,389,805 14,243,142
RENOVA Corporation
0 - 30 Days 311,681 0
31 - 60 Days 290,886 0
62 - 90 Days 107,055 0
91 - Over 871,059 0
1,580,681 0
EUA Day Corporation
0 - 30 Days 336,238 622,561
31 - 60 Days 285,894 355,487
62 - 90 Days 97,612 253,662
91 - Over 543,943 768,931
1,263,687 2,000,641
DayMetrix
91 - Over 0 (293)
(293)
EUA NEMI Corporation
0 - 30 Days 745,262 271,059
31 - 60 Days 0 339,372
62 - 90 Days 0 0
91 - Over 0 87,867
745,262 698,298
EUA Citizens Corporation
0 - 30 Days 3,163,223 1,700,178
31 - 60 Days 0 28,701
62 - 90 Days 0 94,096
91 - Over 0 102,132
3,163,223 1,925,107
EUA Cogenex West Corporation
0 - 30 Days 1,116,703 891,022
31 - 60 Days 359,603 375,550
62 - 90 Days 391,095 164,628
91 - Over 1,202,156 20,433
3,069,557 1,451,633
EUA Canada Corporation
0 - 30 Days 1,286,121 282,348
31 - 60 Days 0 0
62 - 90 Days 0 0
91 - Over 0 19,487
1,286,121 301,835
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1998
SCHEDULE VI
ACCOUNTS RECEIVABLE AGING (Continued)
INSTRUCTIONS: Complete the following schedule concerning the aging of
accounts receivable for Account 143 - Accounts Receivable and
Account 146 - Accounts Receivable from Associated companies
DESCRIPTION BALANCE AT BALANCE AT
BEGINNING OF END OF YEAR
YEAR
ACCOUNT 143 - ACCOUNTS RECEIVABLE
Energy Capital & Services I
0 - 30 Days 220,910** 395,682
31 - 60 Days 76,593** 369,247
62 - 90 Days 5,059** 42,889
91 - Over 591,291** 792,804
893,853** 1,600,622
Energy Capital & Services II
0 - 30 Days 654,894** 1,264,338
31 - 60 Days 19,101** 368,625
62 - 90 Days 66,284** 43,142
91 - Over 574,990** 318,792
1,316,269** 1,994,897
EUA FRC II
0 - 30 Days 0 (35,602)
31 - 60 Days 0 0
62 - 90 Days 0 0
91 - Over 588,761** 0
588,761** (35,602)
EUA WestCoast, LP
0 - 30 Days 25,370** 717,625
31 - 60 Days 0 13,917
62 - 90 Days 0 0
91 - Over 43,690** 18,164
69,060** 749,706
EUA MUPA
0 - 30 Days 0 (15,552)
31 - 60 Days 0 0
62 - 90 Days 0 0
91 - Over 23,750** 0
23,750** (15,552)
TOTAL ACCOUNT 143 - ACCOUNTS RECEIVABLE 29,390,029 24,914,434
** INVESTMENT IN SUB ACCOUNT 123 INCLUDED PARTNERSHIP INVESTMENTS IN 1997. IN
1998, ASSETS AND LIABILITIES OF THE PARTNERSHIPS ARE BEING SHOWN AS
CONSOLIDATED SUBSIDIARIES.
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1998
SCHEDULE VI
ACCOUNTS RECEIVABLE AGING (Continued)
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING OF END OF YEAR
YEAR
ACCOUNT 143 - ACCOUNTS RECEIVABLE
from associated companies
EUA Cogenex Corporation
0 - 30 Days 0 936,823
31 - 60 Days 0 27,372
62 - 90 Days 0 335,988
91 - Over 0 804,737
0 2,104,920
EUA Cogenex West Corporation
0 - 30 Days 0 0
31 - 60 Days 0 0
62 - 90 Days 0 12,747
91 - Over 0 0
0 12,747
Total 0 2,117,667
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1998
SCHEDULE VII
ACCUMULATED PROVISION FOR UNCOLLECTIBLE ACCOUNTS
INSTRUCTIONS: Complete the following analysis of accumulated provision for
uncollectible accounts receivable.
CURRENT YEAR
DESCRIPTION BALANCE AT PROVISIONS WRITE-OFF BALANCE AT
BEGINNING OF CLOSE OF
YEAR YEAR
ACCOUNT 144 - PROVISION FOR UNCOLLECTIBLE
ACCOUNTS:
EUA Cogenex Corporation 528,555 244,952 (499,246) 274,261
RENOVA 313,286 0 (313,286) 0
EUA Day 15,320 30,365 (4,916) 40,769
EUA Cogenex West 0 90,000 (72,167) 17,833
EC&S I 0 285,158 0 285,158
EC&S II 0 75,193 0 75,193
TOTAL 857,161 725,668 (889,615) 693,214
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1998
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 143,351 158,888
EUA Day Corporation:
Executive Life Insurance 23,496 30,183
TOTAL 166,847 189,071
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1998
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:
Leased Equipment 18,350 7,395
Unbilled Utility Rev 0 (468,146)
CWIP Reclasses 612,155 0
City of Chino (16,843) 0
EUA Day - Interco ADJ (DEC 97)
61,969 0
EUASC Bill - Sales Tax 22,119 22,119
Columbia University 419,996 1,420,552
Kodak 0 58,662
Open Work Authorizations 4,888,650 1,469,430
Sanwa 11,484 4,680
Miscellaneous (8) (2,872) 4,043
Sub Total 6,015,008 2,518,735
RENOVA:
Miscellaneous (17) 0
EUA Day:
Miscellaneous (1) 9,987 1,118
EUA NEMI:
Deferred Royalties 1,166,384 1,062,379
EUA Citizens Corporation
Open Work Authorizations 69,654 155,192
Interco Note ADJ 0 43,218
Miscellaneous (3) 1,428 3,941
Sub Total 71,082 202,351
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1998
SCHEDULE IX
MISCELLANEOUS DEFERRED DEBITS (Continued)
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:
Work In Progress 13,031 31,285
Other Receivable 46,668 33,639
Sub Total 59,699 64,924
EUA Cogenex - Canada
Development Costs 134,242 0
Miscellaneous (4) 0 10,924
EC&S I
Miscellaneous 0 481
EUA/FRC II
Monteray Valley - Other Receivable 0 21,977
Arkay Packaging - Other Receivable 0 13,625
Sub Total 0 35,602
MUPA
Pacific Linen - Other Receivable 0 15,552
TOTAL 7,456,385 3,912,066
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1998
SCHEDULE XI
PROPRIETARY CAPITAL
NUMBER OF PAR OR STATED OUTSTANDING CLOSE OF PERIOD
ACCOUNT SHARES VALUE PER
NUMBER CLASS OF STOCK AUTHORIZED SHARE NO. OF SHARES TOTAL AMOUNT
COMMON STOCK ISSUED 1,000 $0.10 1,000 $100.00
INSTRUCTIONS: Classify amounts in each account with brief explanation,
disclosing the general nature of transactions
which give rise to the reported amounts.
DESCRIPTION
AMOUNT
ACCOUNT - MISCELLANEOUS PAID-IN CAPITAL 47,046,923
ACCOUNT - APPROPRIATED RETAINED EARNINGS
(1) See Schedule XIV Notes to Financial Statements, Page 29
TOTAL 47,046,923
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 - UNAPPROPRIATED (A) 763,047
RETAINED EARNINGS 477,169 (C) 2,135,718 1,314,196
(B) (2,061,738)
TOTAL 477,169 (1,298,691) 2,135,718 1,314,196
(A) Income from Continuing Operations
(B) Loss from Discontinued Operations
(C) Transfer of RENOVA Division net assets
<TABLE>
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1998
<CAPTION>
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.
NAME OF CREDITOR TERMS OF OBLIG DATE AMOUNT BALANCE AT
CLASS & SERIES OF INT. AMORT- BEGINNING ADDITION 1/ BALANCE AT
OF OBLIGATION MATURITY RATE IZED OF YEAR DEDUC-TIONS 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 10/30/01 9.6% 20,000,000 9,600,000 3,200,000 6,400,000
TERM DEBT: Ins. Co. of
America & PRUCO
Life Ins. Co.
Unsecured Notes
to Prudential
Ins. Co. of
America 06/30/05 10.56% 35,000,000 24,500,000 3,500,000 21,000,000
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 84,100,000 6,700,000 77,400,000
1/ GIVE AN EXPLANATION OF DEDUCTIONS
Sinking Fund Payments
</TABLE>
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1998
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 98,909 324,022
EUA Service Corporation 369,718 154,233
RENOVA 0 633,581
468,627 1,111,836
RENOVA
EUA Service Corporation 15,087 0
EUA Day
EUA Service Corporation 12,399 4,117
NEMI
EUA Service Corporation (1,770) (13,471)
EUA Citizens
EUA Service Corporation 20,024 22,620
EUA Cogenex West
EUA Service Corporation 7,139 7,613
TOTAL 521,506 1,132,715
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1998
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 (15) 15,066 (1,028)
Retainage Liability 308,559 270,481
Reserve for Cogen Disp. 1,611,904 957,641
Accrued Liability (HTI PRJS) 75,537 71,011
Accrued Liability (BECO PRJS) 22,657 375,033
Accrued Liability (VA Medical Center) 0 22,657
Employee Bonus 0 738,641
Energy Matrix, Inc. 182,349 0
Reorganization 380,314 0
Tru-Brite/Walgreens 45,975 0
McBride Properties 0 15,905
Systems Corp/Gillem & McPherson 48,524 (32,136)
MIT 100,000 0
Onsite Southern California Edison 255,533 0
Standard Offer Pay to Sanwa (171,253) (196,764)
Proven Alternatives 446,161 259,725
Sycom Indianhead 34,629 0
3,355,955 2,481,166
EUA DAY
Miscellaneous (3) 1,488 7,880
1,488 7,880
RENOVA
Miscellaneous (7) 3,867 0
3,867 0
EUA Cogenex West
Miscellaneous (5) 1,408 449
1,408 449
EUA Citizens
Charlotte NC Project Equipment 0 19,004
Accrued Maintenance Fees 34,205 85,922
Miscellaneous (3) 2,339 170
36,844 105,096
Energy Capital and Services I 0 163,600
GPU Penalty 0 (27,508)
Miscellaneous 63,276 78,787
Retainage Liability 63,276 214,879
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1998
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
Energy Capital and Services II
Retainage Liability 164,709 187,142
Dow Jones 0 33,786
Rutgers Phase I 0 9,890
Rutgers Phase II 0 3,293
Rutgers Phase III 0 12,630
164,709 246,741
EUA FRC II Energy Associates 0
Reserve for Cogen. Disp. 0 22,318
22,318
EUA WestCoast, LP
Retainage Liability 0 23,817
0 23,817
Micro Utility Partners of America
Reserve for Cogen. Disp. 0 (23,750)
0 (23,750)
TOTAL 3,627,547 3,078,596
ANNUAL REPORT OF EUA COGENEX AND SUBSIDIARY COMPANIES
For the Year Ending December 31, 1998
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% 0 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 6,700,000 6,700,000
EUA Cogenex Corporation
Notes To Consolidated Financial Statements
For The Years Ended December 31, 1998 and 1997
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 agreements permit the invoicing of the contractual
amounts during construction on a percentage of completion basis. 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.
As of December 31, 1998, 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 Company and the joint venture participant. All
partnerships and their customers are subject to the same selection and
screening process to establish acceptable credit quality.
The Company also operates a controls division, EUA Day and a data acquisition
system division, DayMetrix. EUA Day is primarily engaged in the business of
customization, installation and servicing of building temperature control
systems, monitoring an d 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. DayMetrix provides unique
metering and control systems to improve energy usage information to customers.
DayMetrix equipment reads energy usage and allows customer s to adjust energy
using equipment remotely.
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.
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, 1998, the Company employed 155 persons in its operations.
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.
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.
These estimates and assumptions include items such as reserves, discount rates,
accruals, estimated useful lives of equipment, and the valuation of
intangibles. 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 $0.7 million
in 1998 and $1. 0 million in 1997. See Note E for a description of the
transfer of RENOVA Division net assets to an EUA affiliated company.
Revenues
Revenues and contract expenses are based on the financial arrangements
established by each individual contract. Revenue recognition is determined as
follows:
Paid from Savings Contracts
Under paid from savings contracts, the Company receives
payments from customers as energy savings are calculated and
verified on a regular basis over a fixed contract term.
Revenue is recognized as such savings are realized by
customers. Construction and installation costs are 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. When
permitted by the contract revenues may be recognized when
invoiced on a percentage of completion methodology. Interest
on the financed portion of the contracts is recognized as
earned at rates established at the outset of the financing
arrangement and recorded as interest income. All construction
and installation costs are recognized as contract expenses when
the contract re venues 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 or when permitted by the contract revenues may be
recognized when invoiced on a percentage of completion
methodology. 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 primarily represent purchased computerized building heating and air
conditioning automation controls of EUA Day and components of the monitoring
and verification equipment utilized by DayMetrix, both are divisions of the
Company. In addition, EUA Cogenex West has inventory consisting primarily of
lighting fixtures and ballasts. Inventories are stated at lower of cost
(first-in, first-out) or market.
Property, Plant and Equipment
Property, plant and equipment and projects in progress, which are stated at
cost, are comprised of the following (in thousands):
1998 1997
Project energy management and demand reduction equipment $ 90,099 $ 89,630
Office furniture and equipment 4,547 4,719
Other 1,206 1,049
Sub-total 95,852 95,398
Less: Accumulated depreciation 50,085 41,207
Net property, plant and equipment 45,767 54,191
Energy savings projects in progress 6,716 14,799
Net property, plant and equipment
and projects in progress $ 52,483 $ 68,990
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 operating expenses on the
Consolidated Statements of Operations. Total operating depreciation and
amortization expense amounted to $1.8 million in 1998 and 1997 of which $0.7
million and $0.6 million, respectively, relate to depreciation of these assets.
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 $9.6
million and $7.9 million in 1998 and 1997, respectively, and is included in
contract expenses on the Consolidated Statements of Operations.
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.
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. Total amortization expense
amounted to $0.5 million in 1998 and 1997 and is included in contract expenses
on the Consolidated Statements of Operations.
Intangible Assets
Goodwill related to the original acquisition of Cogenex is being amortized over
40 years. Other goodwill related to acquisitions by Cogenex are being
amortized over periods of 15 and 18 years. Other intangible assets, primarily
organizational costs , are amortized over a 60-month period. Total
amortization recorded in operating expenses for 1998 and 1997 was $1.1 million
and $1.2 million, respectively.
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
In June 1998, the Financial Accounting Standards Board (FASB) issued SFAS 133,
"Accounting for Derivative Instruments and Hedging Activities," which is
effective in 2000. This statement requires the recognition of all derivative
instruments as either assets or liabilities in the statement of financial
position and the measurement of those instruments at fair value. The Company
is currently evaluating the impact that SFAS 133 will have on its financial
position or results of operations.
In February 1998, the FASB issued SFAS No. 132, "Employers' Disclosure about
Pensions and other Postretirement Benefits", which revises disclosure
requirements for pension and other postretirement benefits, the Company has
adopted FAS 132 in its financial statements for the year ended December 31,
1998. The adoption of FAS 132 has no impact on the Company's operating
results, financial position, or cash flows.
The Company adopted SFAS 130 "Reporting Comprehensive Income" on January 1,
1998. SFAS 130 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. The adoption of SFAS
130 has no material impact on results of operations.
C. Discontinued Operations
In 1995 the Company announced it was discontinuing its cogeneration operations
and substantially all of the net cogeneration operating assets were sold under
an assignment agreement to Ridgewood/Mass Corp. (Ridgewood). In 1995 a loss on
disposal of cogeneration assets was recorded as part of discontinued
operations.
In 1996 Ridgewood filed a demand for arbitration alleging breach of
representation and warranties under the agreement. The Company entered a
counterclaim seeking payment for services provided under a transition period
agreement. In October 1998 the arbitration panel found for Ridgewood on
certain warranty claims and awarded damages of approximately $2.6 million plus
interest. The Company was awarded approximately $0.4 million plus interest on
its counterclaim. The Company has recorded the payment of the $2.2 million
claim to discontinued operations and has reserves to cover interest and legal
costs of approximately $1.0 million.
D. 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). The Company changed the name of the corporation to EUA
Cogenex West (Cogenex West). Cogenex West 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.
E. Transfer of Business Unit
On May 1, 1998, the Company transferred its net investment in the RENOVA
division to EUA Energy Investment, Inc., a subsidiary of EUA, for cash of $1.7
million. The transfer was at cost and resulted in no gain or loss to the
Company.
F. Income Taxes
At December 31, 1998 and 1997, total deferred tax assets, for which a valuation
allowance of approximately $1.6 million in 1998 and $1.4 million in 1997 was
deemed necessary, were $10.0 million and $10.6 million, respectively, and total
deferred tax liabilities were $5.7 million and $6.8 million, respectively.
Total deferred tax assets and liabilities are comprised as follows (in
thousands):
Deferred Tax Deferred Tax
Assets Liabilities
1998 1997 1998 1997
Plant Related Plant Related
Differences $2,394 $2,251 Differences $5,333 $6,250
Provision for Step Postretirement
Up Tax Basis - NEMI 3,334 3,650 Benefits 346 361
NOL carry- forward, Other 34 159
(net of $1,567 and
$1,414 respectively
valuation allowance) 1,688 1,938
Reserve for
cogeneration losses 396 524
Reserve for
unrecovered costs 573 713
Bad Debts 433 347
Pension 938 904
Other 289 278
Total $10,045 $10,605 $5,713 $6,770
The Company also has approximately $23.3 million of state net operating loss
carryforwards which expire between the years 2000 and 2012.
Components of income tax expense (benefit) from continuing operations for the
years 1998 and 1997 are as follows:
In Thousands 1998 1997
US Federal:
Current $ 929 $ (1,068)
Deferred (390) 949
539 (119)
Foreign:
Current (2) 448
State:
Current 20 88
Deferred (238) 150
(218) 238
Provision for income taxes $ 319 $ 567
Total income tax expense 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 1998 1997
Federal income tax
computed at statutory rates $ 379 $ 269
Increases (decreases) in tax from:
State taxes, net of federal
income tax benefit (142) 154
Other 82 144
Provision for income
taxes on operations $ 319 $ 567
G. 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):
1998 1997
Notes from Project Sales $21,668 $26,962
Notes from Project Financing 16,839 15,371
Total $ 38,507 $ 42,333
In 1998 and 1997, the Company sold to a financial institution receivables with
net present values of $7.0 million and $12.8 million respectively. Cogenex has
recorded these transactions as sales resulting in an after tax gain in 1998 and
1997 of approximately $0.5 and $0.6 million respectively.
H. 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.
The components of the net investment in sales-type leases are as follows (in
thousands):
1998 1997
Minimum lease payments receivable $ 25,542 $ 30,568
Less: Unearned interest 6,735 8,904
Current portion 1,892 2,860
Net investment in sales-type leases $ 16,915 $ 18,804
Future minimum lease payments due under sales-type leases at December 31, 1998
are as follows (in thousands):
1999 $ 4,144
2000 3,565
2001 3,490
2002 3,240
2003 and thereafter 11,103
I. Long-Term Debt (in thousands)
1998 1997
Unsecured Notes Payable:
10.56% series due June 30, 2005 $ 24,500 $ 28,000
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 9,600 12,800
A sinking fund replacement
of $800 per quarter is due
beginning on October 31, 1995
and thereafter until the debt
is paid in full.
7.0% 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 84,100 90,800
Less Current Maturities 6,700 6,700
$ 77,400 $ 84,100
Scheduled maturities of long-term debt for the five years following
1998 are as follow (in thousands):
1999 $ 6,700
2000 56,700
2001 6,700
2002 3,500
2003 3,500
The Company is subject to certain covenants within the agreements relating to
its long-term notes. The most restrictive of these covenants requires the
Company to maintain a ratio of income from continuing operations 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 and the interest coverage covenant at December 31,
1998.
In addition, in connection with the Company's 9.6% unsecured notes, EUA is
required to maintain the Company's equity to capitalization ratio of at least
30% for any two successive quarters. EUA and the Company were in compliance
with this provision at December 31, 1998.
J. 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 $145 million. As of December 31, 1998, 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, 1998 under the revolving
credit commitments, the Company had short-term borrowings available of
approximately $58.9 million. At December 31, 1998 and 1997, Cogenex had $16.1
million and $40.7 million, respectively, of short-term borrowings under these
agreements at weighted average interest rates of 5.84% and 5.41%, respectively.
K. 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,
1998 and 1997 are as follows (dollars in thousands):
Carrying Fair
Amount Value
1998 1997 1998 1997
Cash and Cash Equivalents $ 2,782 $ 4,472 $ 2,782 $ 4,472
Notes Receivable and Net Investment
in Sales-Type Leases $ 57,314 $ 63,997 $ 58,432 $ 65,005
Long-Term Debt
(including current maturities) $ 84,100 $ 90,800 $ 88,788 $ 96,846
L. 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, 1998, no dividends were accrued as a result of the level of
adjusted net income of Citizens.
M. Joint Ventures
The Company has formed 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.
N. Commitments and Contingencies
Pension
The Company participates with other EUA System companies in a non-contributory
defined benefit pension plan (Retirement Plan) covering substantially all of
their employees. Retirement plan benefits are based on years of service and
average compensation over the four years 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.
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 1997 pre-tax gain of
approximately $290,000. The 1997 curtailment gain is included in Other Income
and Deductions in the Consolidated Statements of Operations.
Total pension (income) expense for the retirement plan in 1998 and in 1997
included the following components (in thousands):
1998 1997
Service cost $159 $154
Interest cost 456 435
Expected return on assets (357) (494)
Net amortization:
Prior Service Costs (15) (15)
Net Actuarial (gain) (17) (9)
Transition obligation (asset) 1 1
Net periodic pension expense 227 72
Curtailment (131)
Total periodic pension expense (income) $ 227 $ (59)
Assumptions used to determine pension costs:
Discount rate 7.25% 7.50%
Compensation increase rate 4.25% 4.25%
Long-term return on assets 9.50% 9.50%
The reconciliation of projected benefit obligation, fair value of assets and
funded status of the plan cannot be presented separately for the Company as it
participates in the plan with other subsidiaries of EUA.
The discount rate used to determine pension costs was changed effective January
1, 1999, to 6.75% and was used to calculate the plan's funded status at
December 31, 1998.
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, 1998 and 1997 the
Company's allocated share of expenses related to the supplemental plans were
approximately $125,000 and $38,000, respectively.
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 $258,000 and $251,000 for 1998
and 1997, respectively. In 1997, as a result of the curtailment of the pension
plan, management 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. As a result of the 1997 termination
there is no remaining accrued post retirement benefit cost.
The decision to withdraw from the plan resulted in recognition of pre-tax gain
in 1997 of approximately $0.5 million. This termination gain is included in
Other Income and Deductions on the Consolidated Statements of Operations.
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):
1999 $ 595
2000 379
2001 297
2002 201
2003 1
$ 1,473
Total rent expense under the operating leases was $0.8 million in 1998 and $1.1
million in 1997.
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, 1998 was approximately $3.4 million and
$10.8 million, respectively, and as of December 31, 1997 were approximately
$1.9 million and $9.4 million, respectively.
As of December 31, 1998, management is not aware of any potential drawings
under the letters of credit or claims made to the surety under the performance
bonds.
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.
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 . The Partnerships and the Company entered counterclaims
seeking payment 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. In October 1998 the arbitration panel found for
Ridgewood on certain of the warranty claims and awarded damages of
approximately $2.6 million plus interest and legal fees. The Company was
awarded approximately $0.4 million plus interest and legal fees on its
counterclaim. The Company continues to contest the panel's findings with
respect to interest and legal fees. The final resolution of this matter cannot
be determined at this time.
O. Subsequent Event
On February 1, 1999 the Company's Parent, EUA, and New England Electric System
(NEES) entered into an Agreement and Plan of Merger under which NEES will
acquire all outstanding shares of EUA. The merger is expected to be complete
in early 2000.
<TABLE>
ANNUAL REPORT OF EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
SCHEDULE XV - STATEMENT OF INCOME
CURRENT YEAR - 1998
<CAPTION>
ACCOUNT DESCRIPTION EUA EUA EUA EUA
Cogenex Cogenex Renova Day
Consol Elimin Corp. (Division) (Division)
INCOME
<S> <C> <C> <C> <C> <C> <C>
415 Sales Revenue 10,342,446 1,331,498 9,000,149
417 Project Revenues 19,946,635 8,737,958
417 Consulting Revenues 3,816,603
418 Equity in Earnings (9,854) 5,835,952 5,826,098
419 Interest Income 5,963,736 906,785 5,695,712 (41)
417 Energy Savings Project Sales 7,354,366 5,818,436
417 Turnkey Project Sales 13,315,847 9,034,087
421/450 Miscellaneous Income 1,723,530 1,219,622 (204) 410
Total Income 62,453,308 6,742,737 36,331,913 1,331,254 9,000,559
EXPENSE
904 Uncollectible accounts 286,883 178,245 80,000 30,000
910 Miscellaneous Cust Serv & Info expense
912 Demonstrating and selling expense 71,552 45,907 14,510 6,576
913 Advertising expense-merchandising 130,702 112,856 11,302
920 Salaries and wages 6,603,699 3,468,001 250,976 1,293,964
921 Office supplies and expenses 2,074,536 920,582 132,750 457,596
922 Adm. expense transferred (credit) (829,002) (544,477)
923 Outside services employed 1,752,225 1,044,687 97,467 101,479
924 Property insurance 148,809 51,112 7,284 47,838
925 Injuries and damages 164,247 122,134 20,578
926 Employee pensions and benefits 130,422 219,557 17,185 121,362
927 Franchise Requirements 0
928 Regulatory commission expense 0
930.1 General advertising expenses 495 495
930.2 Miscellaneous general expenses (180,935) (186,128) 28,840 12,200
931 Rents 822,718 533,877 25,126 31,568
935 Maintenance of structures and equipment 98,221 89,659 (1,924)
403/405 Depreciation and amortization expense 1,617,665 580,040 44,121 94,942
408.1 Taxes other than income taxes 799,302 329,712 56,251 218,044
409.1 Income taxes (164,725) (749,535) (387)
410.1 Prov. for def. income taxes (credit) (891,761) (1,243,998
410.2 Provision for deferred income taxes 265,139 265,139
416.0 Cost of Goods Sold 7,234,421 1,066,340 5,939,018
417.1 Expenses non-utility operations 31,010,537 18,531,937
421.1 Gain-disposition of property (16,288) (10,288) (5,500)
421.2 Loss-disposition of property 2,954,628 2,954,628
426.1 Donations 11,217 8,117
426.3 Penalties 53,314 5,162 118 1,287
426.5 Other Deductions 337,169 171,752 (16,884) 36,509
427 Interest on long-term debt 7,334,404 7,334,404
428 Amortization of debt disc. and exp. 138,746 138,746
430 Interest on debt to associated cos. 906,785 37,966 98,355
431 Int. exp. on short-term debt and other 1,120,594 906,785 1,929,065 12 13,107
432 Capitalized Interest (credit) (233,720) (158,800)
Total Expense 63,751,999 906,785 36,029,237 1,967,685 8,515,642
NET (LOSS) INCOME (1,298,691) 5,835,952 302,677 (636,431) 484,917
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
SCHEDULE XV - STATEMENT OF INCOME (CONTINUED)
CURRENT YEAR - 1998
<CAPTION>
ACCOUNT DESCRIPTION EUA EUA EUA EUA EUA
DayMetrix NEMI Cogenex Citizens Cogenex West
(Div.) Inc Canada Corporation Corporation
INCOME
<S> <C> <C> <C> <C> <C> <C>
415 Sales Revenue 10,799
417 Project Revenues 3,663,773 1,023,742 225,379
417 Consulting Revenues 3,816,603
418 Equity in Earnings
419 Interest Income 192,549 436,473
417 Energy Savings Project Sales 1,095,547
417 Turnkey Project Sales 126,352 611,945 2,222,483
421/450 Miscellaneous Income 15 (312)
Total Income 10,799 3,663,788 318,901 5,452,290 3,979,570
EXPENSE
904 Uncollectible accounts 90,000
910 Miscellaneous Cust Serv & Info expense
912 Demonstrating and selling expense 496 4,063
913 Advertising expense-merchandising 6,353 191
920 Salaries and wages 391,546 867 21,133 489,281 687,931
921 Office supplies and expenses 264,657 (10,090) 6,218 76,929 224,843
922 Adm. expense transferred (credit) (111,416) (173,109)
923 Outside services employed 224,724 20,283 8,140 21,967 22,218
924 Property insurance 11,264 300 5,444 25,567
925 Injuries and damages 0 1,801 14,249 5,485
926 Employee pensions and benefits 31,111 222 407 (156,689) (102,733)
927 Franchise Requirements
928 Regulatory commission expense
930.1 General advertising expenses
930.2 Miscellaneous general expenses 20,704 170 1,664 13,655 6,651
931 Rents 367 4,380 744 52,921 173,735
935 Maintenance of structures and equipmen 0 3,348 7,138
403/405 Depreciation and amortization expense 230,008 99,996 15,194 23,677 487,290
408.1 Taxes other than income taxes 8,593 68 1,543 91,523 95,168
409.1 Income taxes 700,389 (2,452) 38,381 (151,121)
410.1 Prov. for def. income taxes (credit) 295,719 83,164 (26,646)
410.2 Provision for deferred income taxes
416.0 Cost of Goods Sold 229,063
417.1 Expenses non-utility operations 661,172 68,047 4,358,650 2,686,856
421.1 Gain-disposition of property (500)
421.2 Loss-disposition of property
426.1 Donations 3,100
426.3 Penalties 720 45,148 128 251
426.5 Other Deductions 143,443 0
427 Interest on long-term debt
428 Amortization of debt disc. and exp.
430 Interest on debt to associated cos. 40,405 274,638 450,333
431 Int. exp. on short-term debt and other 1,138 83,348 10 700
432 Capitalized Interest (credit) (50,120) (24,800)
Total Expense 1,460,653 1,773,476 394,378 5,230,236 4,492,611
NET (LOSS) INCOME (1,449,854) 1,890,312 (75,477) 222,054 (513,041)
</TABLE>
<TABLE>
ANNUAL REPORT OF EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
SCHEDULE XV - STATEMENT OF INCOME (CONTINUED)
CURRENT YEAR - 1998
<CAPTION>
ACCOUNT DESCRIPTION EUA EUA EUA EUA EUA
EC&S I EC&S II FRC II WestCoast MUPA
(Part.) (Part.) (Part.) (Part.) (Part.)
INCOME
<S> <C> <C> <C> <C> <C> <C> <C>
415 Sales Revenue
417 Project Revenues 1,833,842 3,653,301 392,042 416,598
417 Consulting Revenues
418 Equity in Earnings
419 Interest Income 117,914 286,652 75,670 65,591
417 Energy Savings Project Sales 407,773 32,610
417 Turnkey Project Sales 1,320,980
421/450 Miscellaneous Income 48,320 454,321 1,358
Total Income 2,407,848 5,747,864 467,712 483,547 0
EXPENSE
904 Uncollectible accounts 26,722 (118,084)
910 Miscellaneous Cust Serv & Info expense
912 Demonstrating and selling expense
913 Advertising expense-merchandising
920 Salaries and wages
921 Office supplies and expenses 938 113
922 Adm. expense transferred (credit)
923 Outside services employed 101,493 103,979 5,788
924 Property insurance
925 Injuries and damages
926 Employee pensions and benefits
927 Franchise Requirements
928 Regulatory commission expense
930.1 General advertising expenses
930.2 Miscellaneous general expenses (78,700) 9
931 Rents
935 Maintenance of structures and equipmen
403/405 Depreciation and amortization expense 5,098 16,483 20,816
408.1 Taxes other than income taxes (1,600)
409.1 Income taxes
410.1 Prov. for def. income taxes (credit)
410.2 Provision for deferred income taxes
416.0 Cost of Goods Sold
417.1 Expenses non-utility operations 1,076,415 3,439,235 188,225
421.1 Gain-disposition of property
421.2 Loss-disposition of property
426.1 Donations
426.3 Penalties 150 150 100 100
426.5 Other Deductions 1,150 1,199 0
427 Interest on long-term debt
428 Amortization of debt disc. and exp.
430 Interest on debt to associated cos. 5,088
431 Int. exp. on short-term debt and other (1)
432 Capitalized Interest (credit)
Total Expense 1,137,416 3,443,909 (1,500) 214,828 213
NET (LOSS) INCOME 1,270,432 2,303,955 469,212 268,719 (213)
</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
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 (CONTINUED)
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>
ANALYSIS OF BILLINGS
SALES & PROJECT REVENUES
ACCOUNTS 415/417
DESCRIPTION TOTAL COST EXCESS
OR TOTAL
DEFICIENCY AMOUNT
1. Utility Load Reduction Programs
2. Energy Management Programs 13,451,735
3. Turnkey Project Sales 6,494,900
4. Energy Savings Project Sales 13,315,847
5. Packaged Cogeneration 7,354,366
6. Installation & Fabrication of Energy 0
Services Equipment 10,342,446
7. Consulting Fees 3,816,603
TOTAL 54,775,897
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 $ 39,695,684
Outside New England and New York 15,080,213
$ 54,775,897
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 4,448,762
RENOVA (41)
EUA Canada 192,549
EUA Cogenex West 436,473
EC&S I 117,914
EC&S II 286,652
EUA FRC II Energy Associates 75,670
EUA WestCoast, LP 65,591
TOTAL 5,623,570
Energy Related Financing Transactions
EUA Cogenex Intercompany Interest RENOVA 52,665
EUA Cogenex Intercompany Interest EC&S I 5,087
TOTAL 57,752
Other Interest Income
EUA Cogenex (403)
EUA EUASC Interest & Dividend Income 146
TOTAL (257)
TOTAL INTEREST INCOME 5,681,065
Finance Fees
EUA Cogenex - Financing Fee Income 282,671
TOTAL FINANCE FEES 282,671
GRAND TOTAL INTEREST INCOME AND OTHER INCOME 5,963,736
ANALYSIS OF MISCELLANEOUS INCOME
INTEREST INCOME AND OTHER INCOME (Continued)
ACCOUNTS 419/421
DESCRIPTION OF ITEMS AMOUNTS
421-0 MISCELLANEOUS NON-OPERATING INCOME:
EUA Cogenex:
Notes Receivable Factoring Gain 725,707
EC&S I - Management and Accounting 90,000
EC&S II - Management and Accounting 90,000
DayMetrix- Management & Accounting 180,000
NEMI - Management & Accounting 18,000
Late Payment Interest Revenue 47,331
EUASC Non-OP Income 3,992
Gain on Benefit Plan Termination 7,774
BU Settlement 57,655
Miscellaneous (837)
1,219,622
RENOVA:
Miscellaneous (204)
(204)
EUA Day:
Depreciation Adjustment 333
Sales Tax Adjustment 77
410
EUA Canada:
Miscellaneous 15
15
EUA Cogenex West
Miscellaneous (312)
(312)
EC&S I
Note Receivable Factoring Gain 29,887
Late Payment Interest Revenue 18,433
48,320
ANALYSIS OF MISCELLANEOUS INCOME
INTEREST INCOME AND OTHER INCOME (Continued)
ACCOUNTS 419/421
DESCRIPTION OF ITEMS AMOUNTS
421-0 MISCELLANEOUS NON-OPERATING INCOME:
EC&S II
Note Receivable Factoring Gain 451,100
Late Payment Interest Revenue 3,221
454,321
EUA WestCoast, LP
Miscellaneous 1,358
1,358
TOTAL FOR MISCELLANEOUS INCOME 1,723,521
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
HTI - Doctors Hospital (9,663)
Office Equipment (625)
(10,288)
RENOVA
Sale of Automobiles (5,500)
(5,500)
EUA Cogenex West
Sale of Office Furniture (350)
Sale of Office Equipment (150)
(500)
TOTAL (16,288)
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
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>
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.
<CAPTION>
FROM WHOM PURCHASED ADDRESS RELATIONSHIP AMOUNT
A = ASSOCIATE
NA = NON
ASSOC.
<S> <C> <C> <C>
EUA COGENEX CORPORATION
OUTSIDE SERVICES-MANAGEMENT
Various (4) 24,315
OUTSIDE SERVICES-LEGAL:
Martha Smith Shasta Dr, Londonderry, NH NA 56,845
McDermott, Will and Emery State Street, Boston, MA NA 621,018
EUA Service Company W. Bridgewater, MA A 33,979
Various (9) NA 36,810
OUTSIDE SERVICES-ACCOUNTING:
PriceWaterhouse Coopers Box 3026, Boston, MA NA 67,314
Accountemp D-3759, Boston, MA NA 27,404
EUA Service Company W. Bridgewater, MA A 47,232
Various (3) NA 3,082
OUTSIDE SERVICES-E.D.P.:
PriceWaterhouse Coopers Box 3026, Boston, MA NA 47,571
Various (2) NA (47,493)
OUTSIDE SERVICES-OTHER:
ADECCO Box 360161M, Pittsburgh, PA NA 27,374
EUA Service Company W. Bridgewater, MA A 10,295
Various (33) NA 88,941
TOTAL EUA COGENEX 1,044,687
</TABLE>
OUTSIDE SERVICES EMPLOYED - (Continued)
ACCOUNT 923
FROM WHOM PURCHASED ADDRESS RELATIONSHIP
A = ASSOCIATE
NA = NON
ASSOC. AMOUNT
EUA DAY
OUTSIDE SERVICES-LEGAL:
Various (2) NA 1,539
OUTSIDE SERVICES-BLDG & MAINT:
JP Services Martz Rd, Farmington, NY NA 5,993
Turner Landscape Victor, NY NA 4,344
Various (5) NA 3,449
OUTSIDE SERVICES-OTHER:
Various (2) NA 86,154
TOTAL EUA DAY 101,479
EUA CITIZENS
OUTSIDE SERVICES-LEGAL
Various (1) NA 2,355
OUTSIDE SERVICES-ACCOUNTING
Various (1) NA 105
OUTSIDE SERVICES-E.D.P.
Various (1) NA 91
OUTSIDE SERVICES-OTHER:
Various (5) NA 19,416
TOTAL EUA CITIZENS 21,967
EUA COGENEX WEST
OUTSIDE SERVICES-LEGAL:
Various (5) NA 1,745
OUTSIDE SERVICES-ACCOUNTING:
Various (1) NA 105
OUTSIDE SERVICES-OTHER:
Various (21) NA 20,368
TOTAL EUA COGENEX WEST 22,218
OUTSIDE SERVICES EMPLOYED - (Continued)
ACCOUNT 923
FROM WHOM PURCHASED ADDRESS RELATIONSHIP
A = ASSOCIATE
NA = NON
ASSOC. AMOUNT
RENOVA
OUTSIDE SERVICES-LEGAL:
Various (8) NA 3,233
OUTSIDE SERVICE-ENGINEERING
Various (2) NA 6,858
OUTSIDE SERVICES-ACCOUNTING
Various (2) NA 4,905
OUTSIDE SERVICES-INFORMATION
Various (2) NA 2,760
OUTSIDE SERVICES-OTHER:
EUA Cogenex Lowell, MA A 30,000
Various (4) NA 2,047
OUTSIDE SERVICES-COMMISSIONS:
Various (29) NA 47,664
TOTAL RENOVA 97,467
EUA NEMI
OUTSIDE SERVICES-LEGAL
Various (1) NA 2,198
OUTSIDE SERVICES-OTHER:
Various (2) NA 18,085
TOTAL EUA NEMI 20,283
OUTSIDE SERVICES EMPLOYED - (Continued)
ACCOUNT 923
FROM WHOM PURCHASED ADDRESS RELATIONSHIP
A = ASSOCIATE
NA = NON
ASSOC. AMOUNT
DAYMETRIX
OUTSIDE SERVICES-MANAGEMENT
Various (1) NA 6,353
OUTSIDE SERVICES-LEGAL
Harris Beach Wilcox Rochester, NY NA 20,951
OUTSIDE SERVICES-BLDG & MAINT
Various (3) NA 407
OUTSIDE SERVICES-OTHER:
EUA Cogenex Lowell, MA A 180,000
Various (2) NA 17,013
TOTAL DAYMETRIX 224,724
EUA CANADA
OUTSIDE SERVICES-LEGAL
Various (2) NA 5,172
OUTSIDE SERVICES-OTHER:
Various (1) NA 2,968
TOTAL EUA CANADA 8,140
EUA WESTCOAST, LP
OUTSIDE SERVICES-OTHER:
Various (3) NA 5,788
TOTAL EUA WESTCOAST, LP 5,788
OUTSIDE SERVICES EMPLOYED - (Continued)
ACCOUNT 923
FROM WHOM PURCHASED ADDRESS RELATIONSHIP
A = ASSOCIATE
NA = NON
ASSOC. AMOUNT
EC&S I
OUTSIDE SERVICES-LEGAL
Various (1) NA 330
OUTSIDE SERVICES-OTHER:
EUA Cogenex Lowell, MA A 90,000
Various (2) NA 11,163
TOTAL EC&S I 101,493
EC&S II
OUTSIDE SERVICES-LEGAL
Various (1) NA 1,960
OUTSIDE SERVICES-OTHER:
EUA Cogenex Lowell, MA A 90,000
Various (2) NA 12,019
TOTAL EC&S II 103,979
TOTAL OUTSIDE SERVICES
EMPLOYEED 1,752,225
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 495
TOTAL 495
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 1,488
Capitalization of EUA Service Corporation Allocated Expenses (169,082)
Conference Employee Training, Seminar and Conference Fees 6,992
Petty Cash Expense, Letter of Credit & Bank Charges (65,793)
Filing Fees 9,778
Miscellaneous 4,735
Prepaid Expenses 18,950
Administration of Sanwa Loss 6,804
(186,128)
RENOVA
Association Dues 27,750
Employee Training 1,907
Miscellaneous (817)
28,840
EUA Day
Miscellaneous 12,200
DayMetrix
Miscellaneous 20,704
EUA NEMI
Miscellaneous 170
EUA Citizens Corporation
Miscellaneous 13,655
EUA Cogenex West Corporation
Miscellaneous 6,651
EUA Canada
Miscellaneous 1,664
EC&S I
Miscellaneous (78,700)
EC&SII
Miscellaneous 9
TOTAL (180,935)
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 361,857
Data Processing and Other Equipment Rents 172,020
533,877
RENOVA
Building Rents 24,962
Data Processing and Other Equipment Rents 164
25,126
EUA Day
Building Rents 21,525
Data Processing and Other Equipment Rents 10,043
31,568
DayMetrix
Building Rents 0
Data Processing and Other Equipment Rents 367
367
EUA NEMI
Building Rents 4,380
Data Processing & Other Equipment Rents 0
4,380
EUA Cogenex Canada
Building Rents 744
Data Processing & Other Equipment Rents 0
744
EUA Citizens Corporation
Building Rents 41,095
Data Processing and Other Equipment Rents 11,826
52,921
EUA Cogenex West Corporation
Building Rents 104,933
Data Processing and Other Equipment Rents 68,802
173,735
TOTAL 822,718
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 27,752
MA Health Insurance 844
State of New Jersey Disability 21
Property Taxes 2,646
Sales and Use Taxes 4,787
Miscellaneous Taxes 30,195
66,245
U.S. Government Taxes:
Federal Unemployment Compensation 4,084
F.I.C.A. (Net of A & G Credit) 259,383
263,467
TOTAL EUA COGENEX 329,712
EUA FRC II
Other Than U.S. Government Taxes:
Miscellaneous Taxes (1,600)
(1,600)
TOTAL EUA FRC II (1,600)
EUA Cogenex Canada
Other Than U.S. Government Taxes:
Miscellaneous Taxes 1,543
1,543
TOTAL EUA COGENEX CANADA 1,543
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 6,467
State of RI Unemployment Compensation 12,662
MA Health Insurance 34
Property Taxes 1,075
Miscellaneous Taxes 34
20,272
U.S. Government Taxes:
Federal Unemployment Compensation 1,991
F.I.C.A. (Net of A & G Credit) 33,988
35,979
TOTAL RENOVA 56,251
EUA Day:
Other Than U.S. Government Taxes:
Property Taxes 13,614
State of New York Unemployment 16,203
State of New York Sales & Use 4,501
Rhode Island Gross Earning Tax 1,170
35,488
U.S. Government Taxes:
Federal Unemployment Compensation 3,554
F.I.C.A. (Net of A & G Credit) 179,002
182,556
TOTAL EUA DAY 218,044
DayMetrix:
Other Than U.S. Government Taxes:
Property Taxes 3,619
State of New York Unemployment 1,674
State of New York Sales & Use 471
5,764
U.S. Government Taxes:
Federal Unemployment Compensation 268
F.I.C.A. (Net of A & G Credit) 2,561
2,829
TOTAL DAYMETRIX 8,593
TAXES OTHER THAN INCOME TAXES - (Continued)
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 0
Miscellaneous Taxes 68
TOTAL EUA NEMI 68
EUA Citizens:
Other Than U.S. Government Taxes:
State of MA Unemployment Compensation 6,571
State of MA Heath Insurance 275
Property Taxes 218
Miscellaneous Taxes 328
7,392
U.S. Government Taxes:
Federal Unemployment Compensation 1,298
F.I.C.A. (Net of A & G Credit) 82,833
84,131
TOTAL EUA CITIZENS 91,523
EUA Cogenex West Corporation:
Other Than U.S. Government Taxes:
State of MA Unemployment 3,330
Property Taxes 2,854
State of Rhode Island Unemployment 43
Miscellaneous Taxes 785
7,012
U.S. Government Taxes:
Federal Unemployment Compensation 1,666
F.I.C.A. (Net of A & G Credit) 86,490
88,156
TOTAL EUA COGENEX WEST 95,168
GRAND TOTAL TAXES OTHER THAN INCOME TAX 799,302
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 (22) 8,117
8,117
EUA Cogenex West
Huguley Memorial Medical Center 3,000
Miscellaneous 100
3,100
TOTAL 11,217
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: Worcester Settlement 33,158
Boston University Payoff 126,937
Miscellaneous (30) 11,657
171,752
RENOVA:
Miscellaneous (16,884)
EUA Day:
New York State 36,509
EUA Cogenex Canada
Cogenex 143,443
EC&S I
Miscellaneous 1,150
EC&S II Miscellaneous 1,199
TOTAL 337,169
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 35.
SCHEDULE OF TERMINATED CONTRACTS
**FILED UNDER CONFINDENTIAL TREATMENT REQUEST**
SCHEDULE OF PROJECT VALUES
**FILED UNDER CONFINDENTIAL TREATMENT REQUEST**
SCHEDULE OF ESTIMATED KILOWATTS SAVED
INSTRUCTIONS: Provide a statement of estimated kilowatts saved during the
past year and cumulatively, both within and outside of New
England through demand side management projects.
ESTIMATED
UTILITY SPONSOR ESTIMATED CURRENT CUMULATIVE
YEAR KILOWATTS SAVED KILOWATTS SAVED
Commonwealth Electric Co. (1) -0- -0-
Public Service Electric & Gas Co. (3) 24,500 64,993
Orange and Rockland Utilities Inc. (2) 151 2,972
Central Maine Power Company (1) 12,160 22,718
Rochester Gas and Electric Corp. (2) 1,185 8,337
Rockland Electric Company (3) -0- 381
Massachusetts Electric (1) -0- 88
Boston Edison (1) 5,082 26,312
Consolidated Edison (2) -0- -0-
Jersey Central Power and Light (3) 4,432 12,036
TOTAL 47,510 137,837
(1) New England
(2) New York
(3) Outside New England and New York
PROJECT INCOME STATEMENT
**FILED UNDER CONFINDENTIAL TREATMENT REQUEST**
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
Manager Engineering and Construction
RENOVA
Vice President/General Manager
Manager Administration and Accounting
Manager of Engineering & Manufacturing
EUA DAY
Vice President
Business Manager
DAYMETRIX
Director of Product Development
EUA CITIZENS CORPORATION
President
Vice President
Director of Public Housing Operations
Director of Utility Program
Senior Construction Manager
EUA COGENEX WEST
Manager of Engineering and Construction
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: April 20, 1999
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