UNITED STATES OF AMERICA
before the
SECURITIES AND EXCHANGE COMMISSION
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
In the matter of
HEC Inc. Report for Period
24 Prime Parkway April 1, 1999 to
Natick, MA 01760 June 30, 1999
Pursuant to Rule 24
File No. 70-08076 and 70-08086
This report is filed under Rule 24 of the Public Utility Holding Company Act
of 1935 by HEC Inc.(HEC), a wholly owned subsidiary of Northeast Utilities, a
registered holding company. Pursuant to HCAR No. 35-26108 and 35-26335 and
35-26564(the "Orders"), HEC is authorized to provide energy management
services, demand side management services and consulting services. HEC is
required to report quarterly on services provided during the previous
quarter. Accordingly, this report includes the following information:
1. A summary balance sheet and an income statement (unaudited) for the three-
month period ended June 30, 1999. See Exhibit A.
2. A narrative description of HEC's activities undertaken during the quarter
and the type of customers for which services were rendered. Exhibit B.
As requested by order of this Commission pursuant to the Public Utility
Holding Company Act of 1935, HEC has duly caused this report to be signed on
the twenty-ninth day of July 1999.
HEC Inc.
By:
Linda A. Jensen
Vice President - Finance
EXHIBIT A
HEC INC.
BALANCE SHEET - June 30, 1999
ASSETS
CURRENT ASSETS: 1999
-----------
Cash and cash equivalents $ 384,051
Contract receivables, current,
less allowance for uncollectibles of $301,704 7,639,288
Other current assets 148,756
----------
Total current assets 8,172,095
-----------
PROPERTY AND EQUIPMENT 4,348,295
Less accumulated depreciation and amortization 3,227,045
-----------
Net property and equipment 1,121,250
-----------
OTHER ASSETS 135,251
TOTAL ASSETS $ 9,428,596
===========
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES:
Accounts Payable $1,569,531
Accrued Expenses 899,381
Accrued Income Taxes 39,699
Short-Term Borrowing NU Moneypool 2,750,000
-----------
Total current liabilities 5,258,611
-----------
OTHER LIABILITIES:
Deferred income tax liability 168,929
Other 1,122,915
-----------
Total other liabilities 1,291,844
-----------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDER'S EQUITY
Common stock, $1 par value.
Authorized and issued 100 shares 100
Additional paid-in-capital 4,000,000
Foreign Currency Exchange (600)
Accumulated Deficit (1,121,359)
-----------
Total stockholder's equity 2,878,141
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 9,428,596
============
HEC INC.
STATEMENT OF OPERATION
FOR THE QUARTER ENDED JUNE 30, 1999
REVENUES $ 5,067,872
COST OF REVENUES 3,877,448
-----------
Gross profit 1,190,424
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 1,165,860
-----------
Operating income 24,564
-----------
INTEREST INCOME (EXPENSE)
Interest income 18,609
Interest expense (35,584)
-----------
(16,975)
-----------
Income before income tax expense 7,589
INCOME TAX EXPENSE 0
Net Income (Loss) $ 7,589
===========
EXHIBIT B
HEC INC.
REPORT FOR APRIL 1 - JUNE 30, 1999
NARRATIVE DESCRIPTION OF SERVICES
Energy Management Services
HEC provided the following services to clients in the period: energy audits
(the identification of energy and other resource cost reduction
opportunities); design of energy conservation measures including energy
efficient lighting, energy efficient motors, energy management systems,
heating, ventilating and air conditioning equipment retrofits, variable speed
drives; the management of and direct installation of energy conservation
equipment of the same type designed; assistance in identifying and arranging
third-party financing for project installations; training in the operation of
energy efficient equipment and identification of energy efficiency
opportunities; system commissioning and reporting of program results. The
majority of these services were performed for schools, hospitals, federal
facilities and other government facilities. Other services provided consisted
primarily of evaluation of various heating and/or air conditioning equipment
configurations for customers or utilities and monitoring and/or evaluating
the demand side management program installations of non-affiliated utilities.
