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 January 1, 2000 to
Natick, MA 01760 March 31, 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 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 March 31, 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 eleventh day of April 2000.
HEC Inc.
By:
/s/Linda A. Jensen
Vice President - Finance
EXHIBIT A
HEC INC.
BALANCE SHEET - March 31, 2000
ASSETS
CURRENT ASSETS: 2000
-----------
Cash and cash equivalents $ 1,569,625
Contract receivables, current,
less allowance for uncollectibles of $487,126 34,622,029
Other current assets 1,165,739
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Total current assets 37,357,393
------------
PROPERTY AND EQUIPMENT 6,222,211
Less accumulated depreciation and amortization 3,852,534
------------
Net property and equipment 2,369,677
------------
OTHER ASSETS 21,333,428
TOTAL ASSETS $ 61,060,498
============
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES:
Accounts Payable $ 4,329,881
Accrued Expenses 4,245,234
Accrued Income Taxes 97,476
Short-Term Borrowing NU Moneypool 3,500,000
------------
Total current liabilities 12,172,591
------------
OTHER LIABILITIES:
Deferred income tax liability 449,384
Other 29,275,537
------------
Total other liabilities 29,724,921
------------
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 162,886
-----------
Total stockholder's equity 19,162,986
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $61,060,498
============
HEC INC.
STATEMENT OF OPERATION
FOR THE QUARTER ENDED MARCH 31, 2000
REVENUES $ 15,729,325
COST OF REVENUES 13,342,730
------------
Gross profit 2,386,595
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 1,817,743
------------
Operating income 568,852
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INTEREST INCOME (EXPENSE)
Interest income 92,146
Interest expense (148,297)
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(56,151)
-------------
Income before income tax expense 512,701
INCOME TAX EXPENSE 215,334
Net Income (Loss) $ 297,367
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EXHIBIT B
HEC INC.
REPORT FOR JANUARY 1 - MARCH 31, 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.
