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 July 1, 1999 to
Natick, MA 01760 September 30, 1999
Pursuant to Rule 24
File No. 70-8076 and 70-8086
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 September 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. See
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-fifth day of October 1999.
HEC Inc.
By:/s/Linda A. Jensen
Vice President - Finance
EXHIBIT A
HEC INC.
BALANCE SHEET - September 30, 1999
ASSETS
CURRENT ASSETS: 1999
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Cash and cash equivalents $ 915,451
Contract receivables, current,
less allowance for uncollectibles of $301,705 15,449,827
Other current assets 651,258
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Total current assets 17,016,536
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PROPERTY AND EQUIPMENT 6,014,005
Less accumulated depreciation and amortization 3,422,774
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Net property and equipment 2,591,231
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OTHER ASSETS 11,951,738
TOTAL ASSETS $31,559,506
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LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES:
Accounts Payable $4,858,589
Accrued Expenses 1,430,944
Accrued Income Taxes 39,728
Short-Term Borrowing NU Moneypool 3,500,000
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Total current liabilities 9,829,261
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OTHER LIABILITIES:
Deferred income tax liability 168,929
Other 3,391,469
-----------
Total other liabilities 3,560,398
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COMMITMENTS AND CONTINGENCIES
STOCKHOLDER'S EQUITY
Common stock, $1 par value.
Authorized and issued 100 shares 100
Additional paid-in-capital 19,000,000
Foreign Currency Exchange (2,348)
Accumulated Deficit (827,905)
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Total stockholder's equity 18,169,847
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $31,559,506
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HEC INC.
STATEMENT OF OPERATION
FOR THE QUARTER ENDED SEPTEMBER 30, 1999
REVENUES $12,832,211
COST OF REVENUES 10,543,446
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Gross profit 2,288,765
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 1,833,734
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Operating income 455,031
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INTEREST INCOME (EXPENSE)
Interest income 31,174
Interest expense (263,731)
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(232,557)
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Income before income tax expense 222,474
INCOME TAX EXPENSE (79,272)
Net Income (Loss) $ 301,746
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EXHIBIT B
HEC INC.
REPORT FOR JULY 1- SEPTEMBER 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, and installation of plumbing and
mechanical systems; 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.
