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 1,2000 to
Natick, MA 01760 September 30, 2000
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 indirect 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, 2000. 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 seventh day of October 2000.
HEC Inc.
By: /s/Linda A. Jensen
Linda A. Jensen
Vice President - Finance
EXHIBIT A
HEC INC.
BALANCE SHEET - September 30, 2000
ASSETS
CURRENT ASSETS: 2000
-----------
Cash and cash equivalents $ 5,552,545
Contract receivables, current,
less allowance for uncollectibles of $439,174 17,557,758
Other current assets 674,389
------------
Total current assets 23,784,692
------------
PROPERTY AND EQUIPMENT 6,431,711
Less accumulated depreciation and amortization 4,233,959
------------
Net property and equipment 2,197,752
------------
LONG-TERM RECEIVABLES 26,436,997
OTHER ASSETS 12,199,372
TOTAL ASSETS $ 64,618,813
============
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES:
Accounts Payable $ 2,220,599
Accrued Expenses 2,101,920
Accrued Income Taxes (245,819)
Short-Term Borrowing NU Moneypool 5,800,000
------------
Total current liabilities 9,876,700
------------
OTHER LIABILITIES:
Deferred income tax liability 555,499
Project-related loans 31,968,958
Other 2,450,817
------------
Total other liabilities 34,975,274
------------
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
Retained Earnings 766,739
-----------
Total stockholder's equity 19,766,839
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $64,618,813
============
HEC INC.
STATEMENT OF OPERATION
FOR THE QUARTER ENDED September 30, 2000
REVENUES $ 14,956,577
COST OF REVENUES 12,277,044
------------
Gross profit 2,679,533
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 2,215,858
------------
Operating income 463,675
------------
INTEREST INCOME (EXPENSE)
Interest income 553,057
Interest expense (557,632)
-------------
(4,575)
-------------
Income before income tax expense 459,100
INCOME TAX EXPENSE 179,136
Net Income (Loss) $ 279,964
=============
EXHIBIT B
HEC INC.
REPORT FOR JULY 1 - SEPTEMBER 30, 2000
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.
