File No. 70-8831
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
AMENDMENT 1 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 70-8831 is hereby amended and restated in
its entirety to read as follows:
HEC Inc. ("HEC"), a non-utility subsidiary of Northeast Utilities
("NU"), formed in 1990 to provide energy management services, HEC Energy
Consulting Canada Inc. ("HEC Canada") and HEC International Corporation ("HEC
International"), wholly-owned subsidiaries of HEC (collectively, Applicants),
file this application/declaration (the "Application") on Form U-1 to the
Securities and Exchange Commission (the "Commission") for the purpose of
obtaining authorization for Applicants to (i) provide additional forms of
energy services to nonassociates, including customers of NU system companies,
and associate NU system companies and (ii) enter into joint ventures with
utilities located outside New York and New England.
ITEM 1. DESCRIPTION OF PROPOSED TRANSACTIONS
The 1990, 1993, 1994 & 1995 Orders
The 1990 Order (HCAR No. 35-25114-A) authorized NU's organization of
HEC, NU's acquisition of HEC's capital stock and HEC's provision of energy
management services. Pursuant to the 1990 Order, HEC was authorized to
provide various energy management services and demand side management ("DSM")
measures, without limitation, to customers in New England and New York (the
"Region"), and limited services outside the Region.
By order dated September 30, 1993 (HCAR No. 35-25900, the "1993 Order"),
the Commission authorized HEC to provide additional energy management and DSM
services and to enter the consulting business in the energy management and
DSM area. The 1993 Order provided that revenues (other than consulting
revenues) attributed to customers outside the Region would not exceed
revenues (other than consulting revenues) attributed to customers within the
Region (the "50% Restriction"). In general, the 1993 Order imposed no
restrictions on consulting revenues.
By order dated August 19, 1994 (HCAR No. 35-26108, the "1994 Order"),
the Commission authorized HEC to organize and acquire HEC Canada, an Ontario
corporation, and HEC International, a Massachusetts corporation. HEC Canada
was organized to provide energy management, DSM and consulting services to
customers located in Canada. HEC International was organized to participate,
on a fifty-fifty basis, in a joint venture with Barakat & Chamberlin, an
unaffiliated company, to form HECI, a subsidiary of HEC International.
By order dated July 19, 1995 (HCAR No. 35-26335, the "1995 Order"), the
Commission authorized HEC and HEC's direct and indirect subsidiaries to
provide energy management and DSM services to customers outside HEC's New
England and New York Region without regard to the 50% Restriction. In
addition, the 1995 Order authorized Applicants to form joint ventures with
utilities to serve customers in different areas outside of HEC's Region.
Authorization for Additional Forms of Energy Services
Based on Applicants' skills and expertise gained from providing energy
management, DSM and consulting services to a wide range of customers,
Applicants hereby request authorization to provide, to the extent the
following activities are deemed jurisdictional under the Act, the following
forms of energy services to and for (i) nonassociates, including customers of
the NU system operating companies, and (ii) associate HEC companies and other
NU system companies: <F1>
<F1> Depending on the particular customer's circumstances and
the purposes of the overall project, many of the individual
energy services listed below are within Applicants' previously
authorized services; however, for purposes of clarity, groups
of related or similar individual services are listed below.
In addition, Applicants believe that the categorization of
their services between energy management, DSM and consulting
services is no longer necessary or useful because the 1995
Order authorized Applicants to provide energy management and
DSM services to customers without regard to the 50%
Restriction. That Restriction had previously limited
Applicants' revenues from energy management and DSM services
provided to customers outside HEC's New England and New York
Region to no more than those revenues from customers within
the Region. In contrast, Applicants' consulting services had
not been subject to the 50% Restriction. Therefore,
Applicants have not attempted to categorize the following
services as being energy management, DSM or consulting
services.
1. identification of (1) energy and other resource (water, labor,
maintenance, materials) cost reduction opportunities and (2)
energy/resource efficient application of technologies; <F2>
<F2> The 1993 Order authorized HEC to identify energy and
other resource cost reduction opportunities. The second part
of the above proposed services indicates that Applicants can
identify energy/resource efficient applications of
technologies for their customers that increase or improve
end-use services, e.g., lighting or ventilation, but do not
necessarily reduce overall cost versus an existing
application.
2. design of facility and process modifications and/or enhancements;
<F3>
<F3> The 1993 Order also authorized HEC to design facility and
process modifications to realize energy/other resource cost
reduction opportunities. Similar to item 1 above, customers'
requests for Applicants' design of facility and process
modifications and/or enhancements may seek to increase or
improve end-use services of facilities or processes, such as
lighting or ventilation, instead of directly reducing costs.
3. design, management of or direct construction, and/or installation
of mechanical, water and electrical systems, energy and other
resource consuming equipment, and equipment that controls or
monitors energy consumption and related equipment; <F4>
<F4> The 1993 Order authorized HEC's design and specification
of energy consuming equipment and the 1990 Order authorized
HEC's management of or direct construction and installation of
energy conservation equipment. This item requests
authorization for Applicants to manage, construct and/or
install the types of equipment that they are authorized to
design and provide specifications for.
4. implementation of operational and maintenance techniques and
measures related to energy and other resource consumption; <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).
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> 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.
6. marketing services related to clients' provision of energy-related
products and services and/or associated technical support of such
marketing, pertaining to HEC's expertise developed in its business,
as previously authorized and as described above; <F7>
<F7> For example, Applicants may provide engineering
evaluation of various energy consuming equipment options
available to customers or evaluation of the applicability of
various energy-related products to a customer class or
particular customer. Based on substantial experience in the
competitive energy services business, Applicants are well
qualified to provide marketing and related technical support
services to associate NU system companies and nonassociate
companies that want to offer energy-related products and
services.
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> For example, a customer may wish to "out-source" the
operation and maintenance of its facility central heating and
chilling plant to one of the Applicants. Other examples of
energy consuming systems that the Applicants may 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 and other resource 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,
acquisitions 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.
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> 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 South West, HCAR No. 26184 (12/13/94).
9. preliminary development work relating to cogeneration and self-
generation projects up to 10 megawatts in capacity; <F10>
<F10> Preliminary development work relating to cogeneration
and self-generation ("customer generation") projects would
include activities such as investigation of potential
opportunities for customer generation projects, preliminary
engineering and licensing activities, preparation of proposals
and other necessary activities to identify and analyze
feasible customer generation opportunities; it would not
include ownership or operation of a customer generation
system, which Applicants would not engage in prior to
obtaining all necessary Commission approvals. HEC's
management will undertake to ensure that such services of
Applicants do not interfere with Charter Oak Energy, Inc.'s
activities.
10. training related to energy services, as described above; <F11>
<F11> The 1993 Order authorized HEC to provide training of
customers in the operation of equipment. Energy services
customers sometimes also need training in other aspects of
energy services such as basic maintenance skills. In
addition, employees of other NU system companies may need
training to better understand the potential use of and
benefits from energy services for their work with customers of
the NU system operating companies.
11. monitoring, tracking and reporting of system or program results;
<F12>
<F12> The 1993 Order authorized HEC to provide reporting of
system results and monitoring of demand side management
programs. This item would authorize applicants to monitor,
track and report on all aspects of their energy services,
which are important aspects of many of the above services.
12. design and/or marketing of energy-related proprietary and/or
intellectual property, e.g., processes, programs, techniques, or
computer software such as energy usage tracking software, and
energy management system monitoring programs and reports; <F13>
<F13> The 1993 Order authorized HEC to engage in design and
marketing of intellectual property used to analyze energy
conservation opportunities and results. This item would
authorize Applicants to design and/or market other types of
energy-related intellectual property.
Applicants do not expect that they will use any intellectual
property developed by Northeast Utilities Service Company
("NUSCO"), NU's service company subsidiary, or another NU
system company (other than an Applicant); however, if one of
the Applicants does use such intellectual property, it would
pay the following amounts to the other NU system company for
any such intellectual property actually sold or licensed by
such Applicant:
(1) 70% of the revenues from the intellectual property
until the NU system company that developed the
intellectual property recovers its costs; and
(2) 20% of the such revenues thereafter.
Applicants would pay cost for any intellectual property
developed at their request. Applicants would not address any
such request to an NU system operating company. Further,
Applicants will not market intellectual property to another NU
system company if such intellectual property was developed by
an NU system company other than one of the Applicants.
13. consulting and engineering services related to energy efficiency
and associated technologies such as indoor air quality and
environmental compliance (e.g., development or evaluation of energy
conservation/efficiency measurement protocols and standards,
general technical advice concerning the use, benefits, planning
and/or administration of energy management and/or energy services
programs, permitting requirements related to installation of a new
boiler or waste-heat recovery system).
Forms of payment for Applicants' services will vary by project and may
include fee-for-service, fixed price, time and materials, progress payments,
turnkey payment, third-party financing arrangements, performance contracts
with a savings guarantee or payment based on the energy and/or other resource
savings achieved, or the output of equipment (e.g., steam, water, chilled
water, air, heat, etc.), commission and/or other payment structures.
Applicants' services provided to any associate NU system companies will
be provided at cost. In addition, Applicants will not use other NU system
companies' employees in their provision of services to NU system operating
companies.
Legal Analysis
Applicants believe that the services described above are consistent with
the requirements of Section 11(b) of the Act for the following reasons:
Section 11(b)(1) of the Act limits the operations of a registered
holding company system to a single integrated public utility system, and to
such other businesses as are reasonably incidental, or economically necessary
or appropriate to the operations of such integrated public utility system.
Section 11(b)(1) explains that the Commission may permit, as reasonably
incidental or economically necessary or appropriate to the operations of one
or more integrated public utility systems, the retention of any business that
the Commission shall find necessary or appropriate in the public interest or
for the protection of investors or consumers and not detrimental to the
proper functioning of such system or systems.
As explained above, the Commission has previously authorized services
similar to many of those proposed by Applicants. Moreover, the Commission
has directly referenced the market conditions in the electric utility
industry that created the need for many of Applicants' proposed services:
"The electric and gas utility industry is in transition.... companies must
adapt to an increasingly competitive environment." HCAR No. 35-26153
(11/2/94).
In its June 1995 Study of the Regulation of Public-Utility Holding
Companies, the Division of Investment Management noted the restrictive impact
of the Act:
We believe that the Holding Company Act is unnecessarily restrictive in
many regards, and may prevent companies from responding effectively to
the changes now occurring in the utility industry. These effects, we
have concluded, are clearly detrimental to both investors and consumers.
With respect to diversified activities in particular, the Division noted:
The SEC must continue to respond flexibly to change in the utility
industry. Toward this end, the Division believes that the registered
holding companies should be permitted to invest in diversified
activities without unnecessary regulatory obstacles....
Applicants' proposed services respond directly to the increasingly
competitive utility environment. Electric utility customers desire optimal
solutions, in terms of energy and other resource costs, to their specific
needs for end-use services (such as lighting, heating, ventilation, air
conditioning or compressed air). They do not have the time, resources or
money to become expert in energy and other resource issues. Consequently,
maintaining Applicants' position on the cutting edge of their business
provides the NU system operating companies with direct access to skills and
knowledge that are critical to serving electric customers who are in
increasingly competitive businesses.
Through effective marketing and cost management, Applicants' business
has grown substantially and is producing increasingly positive operating
results, to the benefit of the NU system investors. As of December 31, 1995,
Applicants had assets of $11 million, annual revenues of $32 million, and net
income (after tax) of approximately $367,000 for 1995. Expanding Applicants'
authorized services should help ensure Applicants' continued positive trends
and leading competitive position. NU and its shareholders will continue to
bear any risks associated with Applicants' energy services.
Extension of Authorization to Form and Fund Joint Ventures
The 1995 Order authorized Applicants to form, without subsequent
Commission approval, joint ventures with utilities to serve customers in
different areas outside of New England and New York at any time in the period
through June 30, 1996. Pursuant to that authorization, Applicants have
formed one such joint venture and may form one or more additional joint
ventures on or before June 30, 1996. However, Applicants believe that they
will have attractive opportunities to enter joint ventures with other
utilities after June 30, 1996. Accordingly, Applicants request that this
authorization be extended so that they may form such joint ventures (as
described in the 1995 Order) with utilities (and acquire initial equity
interests in such joint ventures) at any time during the period through June
30, 2001.
The 1995 Order also authorized Applicants to make, and the joint
ventures to accept (from Applicants and from the participating utility),
advances of money, property or other contributions as needed for the joint
venture's operations during the period through June 30, 1996. The rate of
interest on such advances was to equal HEC's cost of money (for advances from
Applicants) and a rate not to exceed the utility's cost of money (for
advances from that utility).
Applicants request an extension of authorization for their and the
participating utilities' initial investments of money, property or other
contributions to such joint ventures (and for the joint ventures to accept
such investments). Those initial investments would take the form of
acquisition of an equity interest in the venture and/or an acquisition of
notes or other form of indebtedness of the venture during the period through
June 30, 2001. Applicants' and the participating utilities' subsequent
advances, loans or capital contributions to the joint ventures would be made
pursuant to exemptions contained in the Commissions' rules, unless subsequent
Commission authorization is obtained. Nevertheless, Applicants' equity
investments plus any outstanding loans will not exceed $1 million for any
joint venture at any time, unless further Commission authorization is
obtained. Applicants' equity investments plus any outstanding loans, in
aggregate to all such joint ventures, will not exceed $8 million at any time,
unless further Commission authorization is obtained. The participating
utility's contributions and/or loans to an individual joint venture would not
exceed an aggregate amount of $1 million for any joint venture.
These joint ventures will be organized to provide services that
Applicants provide and the organizational documents governing the joint
ventures will expressly limit these joint ventures' activities to the
activities that Applicants are authorized to engage in. The joint ventures
would provide services to customers located in defined regions that would
include, but not be limited to, the service area of the participating
utility. The joint ventures would enter into agreements with Applicants and
with the participating utility to obtain administrative, marketing and/or
engineering services. Those services would be provided at cost pursuant to
rule 90.
None of the Applicants shall become, as a result of the provision of
energy services described herein, a company that owns, operates or is an
equity participant in (1) any electric utility company, as defined in section
2(a)(3) of the Act, (2) any exempt wholesale generator, as defined in the
Energy Policy Act of 1992, or (3) any foreign utility company, as defined in
the Energy Policy Act. In addition, Applicants will not have any rights or
obligations under a service, sales or construction contract with an exempt
wholesale generator or a foreign utility company as a result of the proposed
transactions, except as permitted by the Act.
The NU system is in compliance with Rule 53(a), (b), and (c), as
demonstrated by the following determinations:
(i) NU's aggregate investment in EWGs and FUCOs (i.e., amounts invested
in or committed to be invested in EWGs and FUCOs, for which there
is recourse to NU) does not exceed 50% of the NU system's
consolidated retained earnings as reported for the four most recent
quarterly periods on NU's Form 10-K and 10-Qs. At December 31,
1995, the ratio of such investment ($39 million) to such
consolidated retained earnings ($1 billion) was 4 percent.
(ii) Encoe Partners, Central Termica San Miguel de Tucuman, S.A., Ave
Fenix, and Plantas Eolicas, S.A. (NU's only EWGs or FUCOs at this
time)(collectively "EWGs/FUCOs") maintain books and records, and
prepare financial statements in accordance with Rule 53(a)(2).
Furthermore, NU has undertaken to provide the Commission access to
such books and records and financial statements, as it may request.
(iii) No employees of the NU system's public utility companies have
rendered services to the EWGs/FUCOs.
(iv) NU has submitted (a) a copy of each Form U-1 and Rule 24
certificates that have been filed with the Commission under Rule 53
and (b) a copy of Item 9 of Form U5S and Exhibits G and H thereof
to each state regulator having jurisdiction over the retail rates
of the NU system public utility companies.
(v) Neither NU nor any NU subsidiary has been subject of a bankruptcy
or similar proceeding unless a plan of reorganization has been
confirmed in such proceeding. In addition, NU's average
consolidated retained earnings for the four most recent quarterly
periods has not decreased by 10% or more from the average for the
previous four quarterly periods.
(vi) In the previous fiscal year, NU's operating losses attributable to
its investment in the EWGs/FUCOs did not exceed 5 percent of NU's
consolidated retained earnings.
ITEM 2. FEES, COMMISSIONS AND EXPENSES
The estimated fees and expenses payable in connection with the
transactions contemplated by this Application are as follows:
Commission filing fee $2,000
Legal fees and expenses 3,500
Miscellaneous related expenses
(such as telephone, courier and travel) 200
TOTAL $5,700
ITEM 3. APPLICABLE STATUTORY PROVISIONS
The sections of the Act and the rules or exemptions thereunder that
Applicants consider applicable to the additional services and the basis for
exemption therefrom are set forth below:
Additional Energy Services Sections 9 and 10
Energy Services Provided by Section 13(b)
Applicants to associate companies Rules 87, 90 and 91
Services Provided by NU System Section 13(b)
Companies to Applicants Rules 87, 90 and 91
Formation of, acquisitions of equity Sections 6a, 7, 9 and
interests in or debt of, and 10; Rules 45(a) and 52
participation in joint ventures by
Applicants and participating utilities
Services Provided by Applicants Section 13(b)
to Joint Ventures Rules 87, 90 and 91
ITEM 4. REGULATORY APPROVAL
No commission, other than this Commission, has jurisdiction over any of
the proposed transactions described in this application/declaration.
ITEM 5. PROCEDURE
Applicants respectfully request, pursuant to Rule 23(c) of the
Commission's Rules and Regulations under the Act, that the Commission permit
this application/declaration to become effective on or before July 14, 1996,
or as soon thereafter as practicable. Applicants hereby waive any
recommended decision by a hearing officer or by any other responsible officer
of the Commission and waive the 30-day waiting period between the issuance of
the Commission's Order and the date on which it is to become effective,
because it is desired that the Commission's Order, when issued, become
effective forthwith. Applicants consent that the Office of Public Utility
Regulation within the Division of the Investment Management may assist in the
preparation of the Commission's decision and/or Order unless the Office
opposes the transactions covered by this application/declaration.
ITEM 6. EXHIBITS AND FINANCIAL STATEMENTS
A. Exhibits
Exhibit F-1 - Opinion of Counsel (to be filed by amendment)
Exhibit G - Form of Notice (filed herewith)
B. Financial Statements
1.1 Balance Sheet - HEC, as of December 31, 1995 actual
(to be filed by amendment).
1.2 Statement of Income - HEC, as of December 31, 1995,
& Retained Earnings actual (to be filed by amendment).
ITEM 7. INFORMATION AS TO ENVIRONMENTAL EFFECTS
It is believed that the granting and permitting to become effective of
this application/declaration will not constitute a major federal action
significantly affecting the quality of the human environment. No other
federal agency has prepared or is preparing an environmental impact statement
with respect to the proposed transactions.
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: June 18, 1996
Exhibit G
PROPOSED FORM OF NOTICE
HEC Inc.
HEC Energy Consulting Canada Inc.
HEC International Corporation
HEC Inc. ("HEC"), a non-utility subsidiary of Northeast Utilities, a
registered holding company, and HEC's subsidiaries, HEC Energy Consulting
Canada Inc. and HEC International Corporation (collectively, "Applicants")
have filed an application/declaration under Sections 6(a), 7, 9, 10, 12,
13(b) of the Public Utility Holding Company Act of 1935 and Rules 45, 52,
87(b)(1), 90, 91 thereunder for the authority to engage in certain
diversification activities, either directly or through existing or future
joint ventures with other companies.
Diversification activities proposed in the application/declaration include
the following energy services: (1) identification of energy/other resource
cost reduction opportunities and energy/other resource efficient application
of technologies, (2) design of facility and process modifications and/or
enhancements, (3) design, management of or direct construction, and/or
installation of mechanical, water, and electrical systems and other
equipment, (4) implementation of operational and maintenance techniques, (5)
recommendations for acquisition of energy and/or brokering of cost effective
energy or marketing of energy fuels, (6) marketing services for
energy-related products and services, (7) construction, ownership,
maintenance and/or operation of energy consuming systems and related support
equipment and structures, (8) design, construction and/or maintenance of
cogeneration or self-generation systems up to 10 megawatts in capacity, (9)
preliminary development work related to cogeneration or self-generation
systems up to 10 megawatts in capacity, (10) training related to energy
services, (11) monitoring, tracking and reporting of system or program
results, (12) design and/or marketing of energy-related proprietary and/or
intellectual property, (13) consulting and energy engineering and related
services.
The Applicants also seek extension of Commission authorization to form joint
ventures with utilities serving customers in different areas, outside of New
England and New York, without subsequent Commission approval, during the
period through June 30, 2001. Applicants request authorization for their
initial investments of money, property and/or other contributions (which
would take the form of acquisitions of equity interests and/or of notes or
other forms of indebtedness and for the joint ventures to accept such
investments from Applicants and from the respective participating utilities.
Applicants' and the participating utilities' acquisitions of the joint
ventures' debt would be subject to the same interest rate terms authorized by
the Commission in a previous order (i.e., the cost of funds of the lender).
Applicants total equity investments and/or loans to any of such joint
ventures would not exceed $1 million at any time and Applicants' aggregate
amount of equity investments in and loans to all such joint ventures would
not exceed $8 million at any time.
The application/declaration and any amendments thereto are available for
public inspection through the Commission's Office of Public Reference. Any
interested persons should submit their views in writing by , 1996 to
the Secretary, Securities and Exchange Commission, Washington, D.C. 20549,
and serve a copy on the Applicants. Proof of service (by affidavit or, in
the case of an attorney at law, by certificate) should be filed with the
request. Any request for hearing shall identify specifically the issues of
fact or law that are disputed. Any person who so requests will be notified
of any hearing, if ordered, and will receive a copy of any notice or order
issued in this matter. After said date, the Amendment, as filed or as may be
further amended, may be granted.
For the Commission, by the Division of Investment, pursuant to delegated
authority.
