Modified
FORM U-13-60
ANNUAL REPORT
For the Period
Beginning January 1, 1994 and Ending December 31, 1994
To The
U.S. Securities and Exchange Commission
of
HEC Inc.
A Subsidiary Service Company
Date of Incorporation: June 19, 1990
State under which Incorporated:
The Commonwealth of Massachusetts
Location of Principal Executive Offices of Reporting Company
24 Prime Parkway
Natick, MA 01760
Report filed pursuant to Order dated September 30, 1990
in file number 70-8076
Name, title, and address of officer to whom correspondence concerning this
report should be addressed:
Linda A. Jensen, Treasurer
HEC Inc.
24 Prime Parkway
Natick, MA 01760
Name of Principal Holding Company Under Which Reporting
Company is Organized:
Northeast Utilities
INSTRUCTIONS FOR THE USE OF MODIFIED FORM U-13-60
1. 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.
2. 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.
3. Organization Chart - The company shall submit with each annual report
a copy of its current organization chart.
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Schedule or Page
Description of Schedules and Accounts Acct. No. No.
- ------------------------------------- --------------- ---
Description of system of accounting 3
COMPARATIVE BALANCE SHEET Schedule I 4-5
- -------------------------
Company property Schedule II 6-7
Accumulated provision for depreciation and
amortization of company property Schedule III 8
Investments Schedule IV 9
Accounts receivable and accounts
receivable from associate companies Schedule V 10
Miscellaneous deferred debits Schedule IX 11
Proprietary capital Schedule XI 12
Current and accrued liabilities Schedule XIII 13
Notes to financial statements Schedule XIV 14-15
COMPARATIVE INCOME STATEMENT Schedule XV 16
- ----------------------------
Analysis of billing - non-associate companies Account 458 17
Departmental analysis of salaries Account 920 18
Outside services employed Account 923 19-20
Miscellaneous general expenses Account 930.2 21
Rents Account 931 22
Taxes other than income taxes Account 408 23
Other deductions Account 426.5 24
Notes to statement of income Schedule XVIII 25
(included above)
ORGANIZATION CHART 26
- ------------------
Annual Report of: HEC Inc.
for the Twelve Months Ended December 31, 1994
Description of the system of accounting employed by HEC Inc.:
HEC Inc. maintains its accounting books and records on a personal computer using
a general ledger software package developed by BST Consultants. The chart of
accounts is a standard set developed for architectural and engineering firms.
Revenues and expenses are recorded on an accrual basis. A more detailed
description of HEC's accounting policies can be found in the Notes to the
Financial Statements.
<TABLE>
<CAPTION>
ANNUAL REPORT OF HEC INC.
AND SUBSIDIARIES
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31, 1994 AND 1993
- ------------------------------------------------------------- ------------ ------------
ACCOUNT ASSETS AND OTHER DEBITS AS OF DECEMBER 31
- ------------------------------------------------------------- ------------ ------------
1994 1993
<S> <C> <C>
COMPANY PROPERTY
101 Company property (Schedule II) $ 3,780,878 $ 3,410,707
107 Construction work in progress (Schedule II) 0 178,024
------------ ------------
Total Property 3,780,878 3,588,731
------------ ------------
108 Less accumulated provision for depreciation and
amortization of company property (Schedule III) 1,407,814 996,317
------------ ------------
Net Company Property 2,373,064 2,592,414
------------ ------------
INVESTMENTS
123 Investments in associate companies (Schedule IV) 0 0
124 Other Investments (Schedule IV) 0 0
------------ ------------
Total Investments 0 0
------------ ------------
CURRENT AND ACCRUED ASSETS
131 Cash 326,711 251,460
134 Special deposits
135 Working funds 1,600 1,600
136 Temporary cash investments (Schedule IV)
141 Notes receivable
143 Accounts receivable (Schedule V) 2,533,325 2,539,599
144 Accumulated provision of uncollectible accounts
145 Notes receivable from associate companies
146 Accounts receivable for associate companies (Schedule V 118,416 74,384
152 Fuel stock expenses undistributed
154 Materials and supplies 25,956 30,310
163 Stores expense undistributed
165 Prepayments 163,933 180,237
174 Miscellaneous current and accrued assets
------------ ------------
Total Current and Accrued Assets 3,169,941 3,077,590
------------ ------------
DEFERRED DEBITS
181 Unamortized debt expense
184 Clearing Accounts
186 Miscellaneous deferred debits (Schedule IX) 1,948,182 2,616,921
188 Research, development, or demonstration expenditures
190 Accumulated deferred income taxes
------------ ------------
Total Deferred Debits 1,948,182 2,616,921
------------ ------------
TOTAL ASSETS AND OTHER DEBITS $ 7,491,187 $ 8,286,925
============ ============
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF HEC INC.
AND SUBSIDIARIES
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31, 1994 AND 1993
- ------------------------------------------------------------- ------------ ------------
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31
- ------------------------------------------------------------- ------------ ------------
1994 1993
<S> <C> <C>
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI) $ 100 $ 100
211 Miscellaneous paid-in capital (Schedule XI) 4,315,498 4,315,737
215 Appropriated Retained Earnings (Schedule XI) 0 0
216 Unappropriated Retained Earnings (Schedule XI) (979,877) (1,200,694)
------------ ------------
Total Proprietary Capital 3,335,721 3,115,143
------------ ------------
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII) 0 0
224 Other long-term debt (Schedule XII) 0 0
225 Unamortized premium on long-term debt 0 0
226 Unamortized discount on long-term debt 0 0
------------ ------------
Total Long Term Debt 0 0
------------ ------------
CURRENT AND ACCRUED LIABILITIES
231 Notes Payable
232 Accounts Payable 1,163,745 1,568,910
233 Notes payable to associate co (Schedule XIII) 1,975,000 2,875,000
234 Accounts payable to associate co's (Schedule XIII) 36,812 22,701
236 Taxes accrued (170,194) (18,160)
237 Interest Accrued
238 Dividends declared
241 Tax collections payable (Schedule XIII) 22,295 2,918
242 Misc. current and accrued liabilities (Schedule XIII) 748,087 599,525
------------ ------------
Total Current and Accrued Liabilities 3,775,745 5,050,894
------------ ------------
DEFERRED CREDITS
253 Other deferred credits
255 Accumulated deferred investment tax credits
------------ ------------
Total Deferred Credits 0 0
------------ ------------
283 Accumulated Deferred Income Taxes 379,721 120,888
------------ ------------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $ 7,491,187 $ 8,286,925
============ ============
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF HEC INC.
AND SUBSIDIARIES
For the Year Ended December 31, 1994
SCHEDULE II - COMPANY PROPERTY
BALANCE AT BALANCE AT
BEGINNING OTHER 1/ CLOSE
DESCRIPTION OF YEAR ADDITIONS SALES CHANGES OF YEAR
- -------------------------------------- ----------- ---------- ------- --------- -----------
COMPANY PROPERTY
Account
- ------
<S> <C> <C> <C> <C> <C>
301 ORGANIZATION $ 111,360 $ $ $ $ 111,360
303 MISCELLANEOUS INTANGIBLE PLANT 0
304 LAND AND LAND RIGHTS 0
305 STRUCTURES AND IMPROVEMENTS 0
306 LEASEHOLD IMPROVEMENTS 6,032 6,032
307 EQUIPMENT 2/ 0
308 OFFICE FURNITURE & EQUIPMENT 645,802 166,766 (5,700) 806,868
309 AUTOMOBILES, OTHER VEHICLES 18,250 4,000 22,250
AND RELATED GARAGE EQUIPMENT
310 AIRCRAFT AND AIRPORT EQUIPMENT 0
311 OTHER COMPANY PROPERTY 3/ 2,629,262 27,082 178,024 2,834,368
----------- ---------- ------- --------- -----------
SUBTOTAL$ 3,410,706 $ 197,848 $(5,700)$ 178,024 $ 3,780,878
----------- ---------- ------- --------- -----------
107 CONSTRUCTION WORK IN 178,024 (178,024) 0
PROGRESS 4/
----------- ---------- ------- --------- -----------
TOTAL $ 3,588,730 $ 197,848 $(5,700)$ 0 $ 3,780,878
=========== ========== ======= ========= ===========
</TABLE>
SCHEDULE II - COMPANY PROPERTY (CONTINUED)
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
Completed ENCORE work transferred to Other Company Property
2/ SUB-ACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE COMPANY
SHALL PROVIDE A LISTING BY SUB-ACCOUNT OF EQUIPMENT ADDITIONS DURING THE
YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR.
Not applicable
3/ DESCRIBE OTHER COMPANY PROPERTY:
ENCORE Inservice Property
4/ DESCRIBE CONSTRUCTION WORK IN PROGRESS
ENCORE Construction Work in Process
ENCORE Capitalized Interest
<TABLE>
ANNUAL REPORT OF HEC INC.
AND SUBSIDIARIES
For the Twelve Months Ended December 31, 1994
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF COMPANY PROPERTY
BALANCE AT ADDITIONS OTHER 1/ BALANCE
BEGINNING CHARGED TO CHANGES AT CLOSE
DESCRIPTION OF YEAR ACCT 403/404 SALES ADD/(DEDUCT) OF YEAR
- ------------------------------------- ---------- ------------ ------ ------------ ----------
COMPANY PROPERTY
Account
- ------
<S> <C> <C> <C> <C><C>
301 ORGANIZATION $ 77,952 $ 22,272 $ $ $ 100,224
303 MISCELLANEOUS INTANGIBLE PLANT 0
304 LAND AND LAND RIGHTS 0
305 STRUCTURES AND IMPROVEMENTS 0
306 LEASEHOLD IMPROVEMENTS 1,066 1,500 2,566
307 EQUIPMENT 2/ 0
308 OFFICE FURNITURE & EQUIPMENT 350,646 102,926 453,572
309 AUTOMOBILES, OTHER VEHICLES 3,480 4,050 7,530
AND RELATED GARAGE EQUIPMENT
310 AIRCRAFT AND AIRPORT EQUIPMENT 0
311 OTHER COMPANY PROPERTY 3/ 563,173 280,749 843,922
---------- ------------ ------ ------------ ----------
TOTAL $ 996,317 $ 411,497 $ 0 $ 0 $1,407,814
========== ============ ====== ============ ==========
</TABLE>
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL: None
3/ AMORTIZATION OF ENCORE PROPERTY
ANNUAL REPORT OF HEC INC.
AND SUBSIDIARIES
For the Twelve Months Ended December 31, 1994
SCHEDULE IV - INVESTMENTS
INSTRUCTIONS: Complete the following schedule concerning investments.
Under account 124 "Other Investments", state each
investment separately, with description including the
name of issuing company, number of shares or principal
amount, etc.
BALANCE AT BALANCE AT
BEGINNING CLOSE OF
DESCRIPTION OF YEAR YEAR
- ---------------------------------------------------------------
Account
123 INVESTMENT IN ASSOCIATE $0 $0
COMPANIES
124 OTHER INVESTMENTS 0 0
136 TEMPORARY CASH INVESTMENTS 0 0
- ---------------------------------------------------------------
TOTAL $0 $0
===============================================================
<TABLE>
<CAPTION>
ANNUAL REPORT OF HEC INC.
AND SUBSIDIAIRES
For the Twelve Months Ended December 31, 1994
SCHEDULE V - ACCOUNTS RECEIVABLE AND
ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable and
accounts receivable from each associate company. Where the service company
has provided accomodation or convenience payments for associate companies,
a separate listing of total payments for each associate company by sub-account
should be provided.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- -------------------------------------------------- ---------------------- -----------
Account
- ------
<S> <C> <C>
143 Accounts Receivable from clients $ 2,539,599 $ 2,533,325
------------ -----------
TOTAL $ 2,539,599 $ 2,533,325
============ ===========
146 Accounts Receivable from Associate Companies
Connecticut Light & Power Company $ 52,336 $ 110,546
Western Massachusetts Electric Company 22,048 0
Public Service of New Hampshire 0 7,870
Northeast Utilities Service Company 0 0
------------ -----------
TOTAL $ 74,384 $ 118,416
============ ===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF HEC INC.
AND SUBSIDIARIES
For the Twelve Months Ended December 31, 1994
SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS
INSTRUCTIONS: Provide detail of items in this account. Items less
than $10,000 may be grouped, showing the number of
items in each group.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- -------------------------------------------- -------------- ----------
Account
- -------
<S> <C> <C>
186 Miscellaneous Deferred Debits
Accrued Revenue for energy systems
& design contracts, net $2,616,921 $1,948,182
---------- ----------
TOTAL $2,616,921 $1,948,182
========== ==========
</TABLE>
-11-
<TABLE>
<CAPTION>
ANNUAL REPORT OF HEC INC.
AND SUBSIDIARIES
For the Twelve Months Ended December 31, 1994
SCHEDULE XI - PROPRIETARY CAPITAL
NUMBER OF PAR OR STATED OUTSTANDING CLOSE OF
SHARES VALUE NUMBER OF PERIOD
ACCT. CLASS OF STOCK AUTHORIZED PER SHARE SHARES TOTAL AMOUNT
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
201 COMMON STOCK 100 $ 1 100 $ 100
- -------------------------------------------------------------------------------------------
INSTRUCTIONS: Classify amounts in each account with brief explanations, disclosing
the general nature of transactions which give rise to the
reported amounts.
DESCRIPTION AMOUNT
- -------------------------------------------------------------------------------------------
211 Miscellaneous paid-in-capital $ 4,315,498
215 Appropriated Retained Earnings None
------------
TOTAL $ 4,315,498
============
INSTRUCTIONS: Give particulars concerning net income or (loss) during the year,
distinguishing between compensation for the use of capital owed or
net loss remaining for servicing nonassociates per the General
Instructions of the Uniforn Systems of Accounts. For dividends paid
during the year in cash or otherwise, provide rate percentage,
amount of dividend, date declared and date paid.
BALANCE AT NET INCOME BALANCE AT
BEGINNING OR DIVIDENDS CLOSE
DESCRIPTION OF YEAR LOSS PAID OF YEAR
- -------------------------------------------------------------------------------------------
216 Unappropriated Retained Earnings$(1,200,694)$ 220,817 $ 0 $ (979,877)
---------------------------------------------------
TOTAL $(1,200,694)$ 220,817 $ 0 $ (979,877)
===================================================
</TABLE>
ANNUAL REPORT OF HEC INC.
AND SUBSIDIARIES
For the Twelve Months Ended December 31, 1994
SCHEDULE XIII - CURRENT ACCRUED LIABILITIES
INSTRUCTIONS: Provide balance of notes and accounts payable to each
associate company. Give descriptions and amount of
miscellaneous current and accrued liabilities. Items
less than $10,000 may be grouped, showing the number
of items in each group.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- ------------------------------------------- ------------ ----------
Account
- -------
233 NOTES PAYABLE TO ASSOCIATE COS.
Northeast Utilities Service Company $ 2,875,000 $1,975,000
---------- ----------
TOTAL $ 2,875,000 $1,975,000
========== ==========
234 ACCOUNTS PAYABLE TO ASSOCIATE COS.
Northeast Utilities Service Company $ 22,701 $ 36,812
---------- ----------
TOTAL $ 22,701 $ 36,812
========== ==========
241 TAX COLLECTIONS PAYABLE $ 2,918 $ 22,294
---------- ----------
TOTAL $ 2,918 $ 22,294
========== ==========
242 MISCELLANEOUS CURRENT AND
ACCRUED VENDOR LIABILITIES
Accrued Audit Fee $ 26,550 $ 12,200
Accrued Commissions 36,385 24,476
Accrued Incentive Expense 65,825 140,000
Accrued Accounts Payable 141,800 428,931
Accrued Lighting Maintenance 24,990 37,350
Reserve for energy savings guarantee 104,000 104,000
Miscellaneous (5 Items) 199,975 1,130
---------- ----------
TOTAL $ 599,525 $ 748,087
========== ==========
ANNUAL REPORT OF HEC INC.
AND SUBSIDIARIES
for the Twelve Months Ended December 31, 1994
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes regarding the
financial statements or any account thereof. Furnish particulars
as to any significant contingent assets or liabilities existing
at the end of the year. Notes relating to financial statements
shown elsewhere in this report may be indicated here by
reference.
(1) Summary of Significant Accounting Policies
------------------------------------------
(a) General
-------
HEC Inc. (the "Company"), a wholly owned subsidiary of Northeast Utilities
("NU"), provides design and energy services for engineering and
installation of energy efficient equipment. In 1994, the Company
established two wholly owned subsidiaries, HEC Energy Consulting Canada
Inc. ("HEC Canada") and HEC International Inc. ("HEC International"). HEC
Canada was established to provide energy services in Canada and HEC
International to provide energy services in the western United States and
internationally through a joint venture with a consulting firm located on
the west coast. The consolidated statements of the Company include the
accounts of all wholly owned subsidiares. Significant intercompany
transactions have been eliminated in consolidation.
(b) Revenue Recognition
-------------------
Revenues include amounts earned under contracts for the design and
installation of energy systems and the realization of energy savings.
Certain revenues are recognized by the percentage-of completion method as
work progresses for contracts in process. Other revenues are recognized as
savings are realized by customers. Losses on contracts are fully
recognized in the period they become estimable. Participation in energy
savings for certain fixed periods subsequent to recovery of installed cost
of energy systems are recognized in the periods such savings are achieved.
(c) Depreciation
------------
Depreciation and amortization are provided using straight-line methods over
the estimated useful lives of the assets.
(d) Organization Costs
------------------
Costs incurred to organize the Company were capitalized and are amortized
using the straight line method over a five-year period commencing July 1,
1990.
ANNUAL REPORT OF HEC INC.
AND SUBSIDIARIES
for the Twelve Months Ended December 31, 1994
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS (continued)
(2) Short-Term Debt
---------------
The Company, as of July 1, 1993, became a participant in the Northeast
Utilities system Money Pool (Pool). As a limited participant, HEC is
limited to borrowing funds provided by NU parent. The Pool provides a more
efficient use of the cash resources of the system, and reduces outside
short-term borrowings. Northeast Utilities Service Company (a wholly-owned
subsidiary of NU) administers the Pool as agent for the member companies.
Borrowings based on loans from NU parent bear interest at NU parent's cost
and must be repaid based upon the terms of NU parent's original borrowing.
At December 31, 1994 and 1993, HEC had approximately $2.0 million in
borrowings at 4.9 and 2.9 percent respectively, from the Pool.
(3) Defined Contribution Plan
-------------------------
The Company participates in NU's 401(k) plan which covers substantially all
employees. Eligible employees may contribute up to 16% of their
compensation to the plan, and the Company will contribute up to 3% of each
employees compensation. Employees become vested in contributions by
specified percentages over a five year period.
(4) Leases
------
The company has certain operating leases for offices and equipment expiring
at various dates through 1998. During 1994, and 1993, HEC charged
approximately $220,000 and 233,000, respectively, in operating lease rental
payments to operating expense. Future minimum rentals payable for
operating leases are as follows:
1995 $208,189
1996 101,646
1997 10,556
1998 9,516
--------
Total $329,907
========
<TABLE>
<CAPTION>
ANNUAL REPORT OF HEC INC
AND SUBSIDIARIES
For the Twelve Months Ended December 31, 1994 and 1993
SCHEDULE XV - STATEMENT OF INCOME
YEAR ENDED YEAR ENDED
DECEMBER 31 DECEMBER 31
ACCOUNT DESCRIPTION 1994 1993
- ------------------------------------------------------- -------------------------
<S> <C> <C>
INCOME
457 Services rendered to Associate Companies $ 651,902 $ 1,131,741
458 Services rendered to Nonassociate Companies 20,041,894 13,580,992
421 Miscellaneous Income/(Loss) 162,886 197,465
----------- ------------
TOTAL INCOME 20,856,682 14,910,198
=========== ============
EXPENSE
904 Reserve for Uncollectible Accounts 68,685 169,700
920 Salaries and Wages 3,124,744 3,085,713
921 Office Supplies and Expense 5,448,943 2,958,189
922 Administrative Expense transferred-credit 0
923 Outside Services Employed 10,205,462 6,841,108
924 Property Insurance 53,684 68,393
925 Injuries and Damages 109,326 107,289
926 Employee Pensions and Benefits 323,313 309,185
928 Regulatory Commission Expense 0
930.1 General Advertising Expense
930.2 Miscellaneous General Expense 83,795 58,133
931 Rents 247,327 267,628
935 Maintenance of Structures and Equipment 12,645 19,563
403 Depreciation and Amortization Expense 389,821 380,646
404 Amortization - Organization Costs 22,272 22,272
408 Taxes other than Income Taxes 264,589 268,535
409 Income Taxes (79,575) 85,092
410 Provision for Deferred Income Taxes 208,128 2,957
411 Provision for Deferred Income Taxes-Credit 50,705 (1,329)
411.5 Investement Tax Credit
426.1 Donations
426.5 Other Deductions 0 114,624
427 Interest on Long-term Debt 0 166,343
428 Amortize Debt Expenses 0 73,820
430 Interest on Debt to Associate Companies 101,672 58,545
431 Other Interest Expense 328 (25,745)
----------- ------------
TOTAL EXPENSE 20,635,864 15,030,662
----------- ------------
NET INCOME/(LOSS) $ 220,817 $ (120,464)
=========== ============
</TABLE>
ANNUAL REPORT OF HEC INC
AND SUBSIDIARIES
For the Twelve Months Ended December 31, 1994
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
EXCESS
OR TOTAL
DEFICIENCY AMOUNT
DESCRIPTION TOTAL COST 458-4 BILLED
- ---------------------------------------------------- -------------
ENERGY MANAGEMENT SERVICES $ 19,039,382
DEMAND SIDE MANAGEMENT SERVICES 658,256
CONSULTING SERVICES 344,256
-------------
TOTAL $ 20,041,894
=============
INSTRUCTIONS: Provide a brief description of the services rendered
to each nonassociate company.
Energy Management Services:
Engineering and installation of energy conservation measures.
Demand Side Management Services:
Engineering and consulting services in the design, implementation,
and evaluation of demand side management programs.
ANNUAL REPORT OF HEC INC
AND SUBSIDIARIES
For the Twelve Months Ended December 31, 1994
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
NAME OF DEPARTEMENT OR SALARY NUMBER OF
SERVICE FUNCTION EXPENSE PERSONNEL
- ------------------------------------------ ---------------------------
ADMINISTRATION $ 715,919 8
ENGINEERING 1,952,502 60
MARKETING 456,323 5
------------ ------------
TOTAL $ 3,124,744 73
============ ============
ANNUAL REPORT OF HEC INC.
AND SUBSIDIARIES
For Twelve Months Ended December 31, 1994
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
From Whom "A"-Associate
Purchased "NA"-Nonassociate Amount
- --------------------------------------------------------------
SUBCONTRACTOR SERVICES
Advance Energy & Lighting NA $126,656
Automated Building Systems NA 66,328
Ballard Companies NA 91,212
Blanchard Electric NA 27,431
Black & McDonald NA 184,533
B&G NA 774,552
Carrier Corp NA 110,000
Casto NA 209,904
Commander NA 59,967
Commercial Insulation NA 34,202
CVM Electric NA 395,596
Custom Control Panel NA 26,152
Cucinell Electric NA 309,415
Difazio NA 54,493
Dougherty NA 55,099
EEM NA 1,826,594
Egg Electric NA 1,380,332
Electri-Comm NA 214,949
Guarantee Mechanical NA 81,408
Harvard University NA 57,730
Hi-Amp NA 285,880
H.G. Martin NA 174,802
J.P. Daly NA 340,676
E.W. Kuhn Electric NA 53,095
Lademann Electric NA 37,099
Lang & Washburn Electric NA 46,386
Landis & Gyr Powers NA 93,594
Leo Hamel NA 33,176
Mard NA 52,148
Munro Distributing NA 39,225
New England Mechanic NA 134,401
New York State Theater NA 93,391
PEM NA 190,704
Purvis Enterprises NA 46,028
Rolands NA 644,063
Ronsco Electric NA 29,917
Rocco Russo, Ltd NA 50,656
Scales Air Compression NA 36,212
St.Onge, Ruff & Associates NA 101,536
One Hundred Thirty Vendors NA 981,222
------------
TOTAL SUBCONTRACTORS $9,550,764
------------
ANNUAL REPORT OF HEC INC.
AND SUBSIDIARIES
For Twelve Months Ended December 31, 1994
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
From Whom "A"-Associate
Purchased "NA"-Nonassociate Amount
- --------------------------------------------------------------
CONSULTING SERVICES
Barakat & Chamberlin NA $54,819
Energy Planning NA 29,692
Mitchell Partnership NA 33,116
Twenty Three Vendors NA 215,259
------------
TOTAL CONSULTING SERVICES $332,886
------------
LEGAL SERVICES
Seven Vendors NA $25,500
------------
AUDITING SERVICES
Arthur Andersen NA $18,000
------------
OTHER PROFESSIONAL SERVICES
Twenty Six Vendors NA $278,312
------------
TOTAL $10,205,462
============
ANNUAL REPORT OF HEC INC
AND SUBSIDIARIES
For the Twelve Months Ended December 31, 1994
MISCELLANEOUS GENERAL EXPENSE
ACCOUNT 930.2
INSTRUCTIONS: Provide a listing of the amount included in Account 930,
"Miscellaneous General Expense," classifying such expenses
according to their nature. Payments and expenses permitted
by Section 321(b)(2) of the Federal Election Campaign Act,
as amended by Public Law 94-283 in 1976 (2 U.S.C Section
441(b)(2) shall be separately classified.
DESCRIPTION AMOUNT
- ----------------------------------------------------------- --------------
Utilities $ 33,662
Miscellaneous 36,845
Recruiting 13,288
--------------
TOTAL $ 83,795
==============
ANNUAL REPORT OF HEC INC
AND SUBSIDIARIES
For the Twelve Months Ended December 31, 1994
RENTS
ACCOUNT 931
INSTRUCTIONS: Provide a listing of the amount included in Account 931
"Rents," classifying such expenses by major groupings of
property, as defined in the account definition of the
Uniform System of Accounts.
DESCRIPTION AMOUNT
- ----------------------------------------------------- --------------
Office Space $ 215,968
Equipment Rental 31,359
--------------
TOTAL $ 247,327
==============
ANNUAL REPORT OF HEC INC
AND SUBSIDIARIES
For the Twelve Months Ended December 31, 1994
TAXES OTHER THAN INCOME TAXES
ACCOUNT 408
INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other
than Income Taxes. Separate the analysis into two
groups: (1) other than U.S. Government taxes, and
(2) U.S. Government taxes. Specify each of the
various kinds of taxes and show the amounts thereof.
Provide a subtotal for each class of tax.
KIND OF TAX AMOUNT
--------
1) Other than U.S. Government taxes
City & County Taxes $ 8,080
Auto Excise Tax 264
State Franchise Taxes 7,500
State Unemployment Taxes 32,052
--------
Subtotal $ 47,896
--------
2)U.S. Government taxes
Employer's FICA Tax $212,783
Federal Unemployment Taxes 3,910
--------
Subtotal $216,693
--------
TOTAL $264,589
========
ANNUAL REPORT OF HEC INC
AND SUBSIDIARIES
For the Twelve Months Ended December 31, 1994
OTHER DEDUCTIONS
ACCOUNT 426.5
INSTRUCTIONS: Provide a listing of the amount included in Account
426.5, "Other Deductions," classifying such expenses
according to their nature.
DESCRIPTION AMOUNT
- ----------------------------------------------------- --------------
Other Deductions
$ 0
--------------
TOTAL $ 0
==============
ANNUAL REPORT OF HEC INC
AND SUBSIDIARIES
For the Year Ended December 31, 1994
SCHEDULE XVIII
NOTES TO STATEMENTS 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 increases 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 pages 14 through 15.
ANNUAL REPORT OF HEC INC. AND SUBSIDIARIES
ORGANIZATION CHART (AS OF DECEMBER 31, 1994)
President - Thomas W. Philbin, Ph.D.
- Vice President and Director - David S. Dayton
- Vice President - Customer Service - H. Donald Burbank, P.E.
- Vice President - Finance & Administration - Linda Jensen
- Vice President of Operations - James B. Redden, P.E.
ANNUAL REPORT OF HEC INC. AND SUBSIDIARIES
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.
HEC INC. AND SUBSIDIARIES
----------------------------
(Name of Reporting Company)
By: /s/ Linda Jenson
-------------------------------
(Signature of Signing Officer)
Linda Jenson - Treasurer
-------------------------------
(Printed Name and Title of
Signing Officer)
Date: April 25, 1995
--------------------
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<FISCAL-YEAR-END> DEC-31-1994 DEC-31-1993
<PERIOD-END> DEC-31-1994 DEC-31-1993
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<NET-SERVICE-COMPANY-PROPERTY> 2,373,064 0
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<TOTAL-CURRENT-ASSETS> 3,169,941 0
<TOTAL-DEFERRED-DEBITS> 1,948,182 0
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<TOTAL-ASSETS-AND-DEBITS> 7,491,187 0
<TOTAL-PROPRIETARY-CAPITAL> 3,335,721 0
<TOTAL-LONG-TERM-DEBT> 0 0
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<NOTES-PAYABLE-ASSOCIATE-COMP> 1,975,000 0
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<SERVICES-ASSOCIATE-COMPANIES> 651,902 0
<SERVICES-NON-ASSOCIATE-COMP> 20,041,894 0
<MISC-INCOME-OR-LOSS> 162,886 0
<TOTAL-INCOME> 20,856,682 0
<SALARIES-AND-WAGES> 3,124,744 0
<EMPLOYEE-PENSION-AND-BENEFIT> 323,313 0
<OTHER-EXPENSES> 17,187,807 0
<TOTAL-EXPENSES> 20,635,864 0
<NET-INCOME> 220,817 0
<TOTAL-EXPENSES-DIRECT-COST> 20,635,864 0
<TOTAL-EXPENSES-INDIRECT-COST> 0 0
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