File No. 70-8831
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
AMENDMENT 3 TO
APPLICATION/DECLARATION
ON FORM U-1
under
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
(The "Act")
HEC INC. HEC ENERGY CONSULTING CANADA INC.
24 Prime Parkway 285 Yorkland Blvd
Natick, MA 01760 Willowdale, Ontario
M2J 1S5
HEC INTERNATIONAL
CORPORATION
24 Prime Parkway
Natick, MA 01760
(Name of company filing this statement and address of
principal executive office)
NORTHEAST UTILITIES
(Name of top registered holding company)
Jeffrey C. Miller
Assistant General Counsel
Northeast Utilities Service Company
P.O. Box 270
Hartford, CT 06141-0270
(Name and address of agent for service)
The Commission is requested to mail signed copies of all orders, notices and
communications to:
Jeffery D. Cochran, Counsel
Northeast Utilities Service Company
P.O. Box 270
Hartford, CT 06141-0270
The Application/Declaration in File No. 70-8831 (the "Application"), as
previously amended, is hereby further amended as follows:
In ITEM 1, the paragraph numbered as "4." is deleted and the following
substituted in lieu thereof.
4. implementation of operational and maintenance techniques and measures
related to energy and other resource consuming equipment referenced in
paragraphs 1, 2, and 3, above; <F5>
<F5> Some energy services customers need assistance in achieving
optimal operation and maintenance of equipment, considering
energy/other resource costs and their needs for end-use services.
The Commission has previously authorized subsidiaries of registered
holding companies to provide various operation and maintenance
services to nonassociates. See, e.g., Jersey Central Power & Light
Company, HCAR No. 35-25948 (12/15/93).
In ITEM 1, the paragraph numbered as "5." is deleted and the following
substituted in lieu thereof.
5. recommendations for acquisition and/or the brokering of cost effective
energy (i.e., electricity, natural gas, oil, propane, wood chips and
refuse-derived fuels) or marketing of energy fuels (i.e., natural gas,
oil, propane, wood chips and refuse-derived fuels, but not electricity);
<F6>
<F6> Applicants request that the Commission reserve jurisdiction
over their provision of the above services outside the United
States and Canada and over their retail marketing of natural gas
within the U.S. and Canada.
Energy brokering services would be where Applicants function as
intermediaries bringing an energy buyer and seller together.
Applicants would not purchase or sell energy; they would be agents
or representatives for energy buyers or sellers. For example,
Applicants may bring an energy marketer to a customer and receive a
commission on energy sales between the energy marketer and the
customer. Applicants would not take title to energy nor would they
enter into contracts to sell or acquire energy in the future;
instead, Applicants would negotiate and arrange contracts between
non-associates and their customers, for their customers to buy or
sell energy.
Marketing of energy fuels would be where Applicants actually
contract to acquire such energy fuels on behalf of their customers.
Applicants believe that some customers would prefer a single
transaction to acquire these energy fuels. Applicants would
respond to that preference by providing comprehensive services for
such customers relating to these fuels. Specifically, Applicants
would identify and analyze alternative options available to meet
their customers' needs, select the most beneficial options and
execute contracts to purchase energy fuels and resell such fuels to
their customers.
In providing the above services, Applicants will not acquire energy
production, transportation or storage facilities. In addition,
Applicants will not make recommendations for the acquisition of or
broker electricity for NU system operating companies or for those
companies' customers.
In ITEM 1, the paragraph numbered as "7." is deleted and the following
substituted in lieu thereof.
7. construction, ownership, maintenance and/or operation of energy
consuming systems and related support equipment and structures
(excluding systems for generation of electric energy); <F8>
<F8> Applicants request that the Commission reserve jurisdiction
over their provision of the above services.
An example of such services would be where a customer wishes to
"out-source" the ownership, operation and maintenance of its
central heating and chilling plant to one of the Applicants. Other
examples of energy consuming systems that the Applicants would
construct, own, maintain and/or operate are compressed air systems,
HVAC equipment, energy management systems, pumps, motors and
lighting systems.
Applicants have developed substantial expertise in helping
customers achieve the most efficient selection and use of energy
consuming equipment, from a total resource/cost perspective. In
some instances, Applicants' expertise and services in this area can
best be provided in transactions where they construct, install,
own, maintain, and/or operate energy consuming equipment for their
customers. In this way, Applicants can ensure that the customer
achieves the most efficient use of such equipment. Such services
enable the customer to concentrate on managing its specific
business, and not waste time, effort and money on energy and
related issues.
The Commission has previously authorized similar services. For
instance, it has authorized the acquisition of steam production
facilities inside an industrial site. See Southern Co., HCAR No.
35-26185 (12/13/94). Further, proposed Rule 58 would allow,
without individual Commission approvals, acquisition of interests
in the production, conversion, and distribution of thermal energy
products, such as process steam, heat, hot water, chilled water,
air conditioning, compressed air and similar products. See HCAR
No. 35-26313.
In ITEM 1, the paragraph numbered as "8." is deleted and the following
substituted in lieu thereof.
8. design, construction and/or maintenance of cogeneration and self-
generation systems (that will be owned and operated by entities other
than Applicants) up to 10 megawatts in capacity for associates and
nonassociates; <F9>
<F9> Applicants request that the Commission reserve jurisdiction
over their provision of the above services outside the United
States and Canada.
The Commission has previously authorized registered holding company
subsidiaries to engage in the development, construction and/or
maintenance of cogeneration facilities. See, e.g., Central and
Southwest, HCAR No. 26184 (12/13/94).
SIGNATURE
Pursuant to the requirements of the Public Utility Holding Company Act
of 1935, the undersigned companies have duly caused this amendment to their
application/declaration to be signed on their behalf by the undersigned
thereunto duly authorized.
HEC INC.
HEC ENERGY CONSULTING CANADA INC.
HEC INTERNATIONAL CORPORATION
By /s/Jeffery D. Cochran
Jeffery D. Cochran
Their Attorney
Dated: August 9, 1996
