Modified
Form U-13-60
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1994 and Ending December 31, 1994
TO THE
U. S. SECURITIES AND EXCHANGE COMMISSION
OF
CHARTER OAK ENERGY INC. AND SUBSIDIARIES
A Subsidiary Investment Company
Date of Incorporation - September 28, 1988
State of Sovereign Power under which Incorporated
or Organized - Connecticut
Location of Principal Executive Offices of Reporting Company
Selden Street, Berlin, CT. 06037
Name, title, and address of officer to whom correspondence
concerning this report should be addressed:
John W. Noyes, Vice President and Controller
P.O. Box 270, Hartford, Ct. 06141-0270
Name of principal holding company
NORTHEAST UTILITIES
INSTRUCTIONS FOR THE USE OF MODIFIED FORM U-13-60
-------------------------------------------------
1. Time of Filing.--Annual Report essentially in the form of U-13-60 shall be
filed appended to Form U5S, Annual Report of the Parent and Associated Companies
pursuant to the Public Utility Holding Company Act of 1935. Form U5S is
required to be filed by May 1.
2. Number of Copies.--Each annual report shall be filed in duplicate. The
company should prepare and retain at least one extra copy for itself in case
correspondence with reference to the report becomes necessary.
3. Period Covered by Report.--This information is not applicable to the
company's line of business.
4. Report Format.--Reports shall be submitted using this format of
presentation. If the space provided on any sheet of such form is inadequate,
additional sheets may be inserted of the same size as a sheet of the form or
folded to such size.
5. Money Amounts Displayed.--All money amounts required to be shown in
financial statements may be expressed in whole dollars, in thousands of dollars
or in hundred thousands of dollars, as appropriate and subject to provisions of
Regulation S-X (Section 210.3-01(b)).
6. Deficits Displayed.--Deficits and other like entries shall be indicated by
the use of either brackets or a parenthesis with corresponding reference in
footnotes. (Regulation S-X, Section 210.3-01(c)).
7. Major Amendments or Corrections.--Any company desiring to amend or correct a
major ommission or error in a report after it has been filed with the Commission
shall submit an amended report including only those pages, schedules, and
entries that are to be amended or corrected. A cover letter shall be submitted
requesting the Commission to incorporate the amended report changes and shall be
signed by a duly authorized officer of the company.
8. Definitions.--This information is not applicable to the company's line of
business.
9. Organization Chart.--The company shall submit with each annual report a copy
of its current organization chart.
10. Methods of Allocation.--The company shall submit with each annual report a
listing of the currently effective methods of allocation being used by the
company and on file with the Securities and Exchange Commission pursuant to the
Public Utility Holding Company Act of 1935.
11. Annual Statement of Compensation for Use of Capital Billed.--This
information is not applicable to the company's line of business.
-1-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
----------------------------------------------------
Schedule or Page
Description of Schedules and Accounts Account No. Number
- ------------------------------------- ----------- ------
Comparative Balance Sheet Schedule I 3-4
- -------------------------
Property Schedule II 5
Accumulated provision for depreciation and
amortization of property Schedule III 6
Investments Schedule IV 7
Accounts receivable from associated companies Schedule V 8
Fuel stock expenses undistributed * Schedule VI 9
Stores expenses undistributed * Schedule VII 10
Miscellaneous current and accrued assets Schedule VIII 11
Miscellaneous deferred debits Schedule IX 12
Research, development or demonstration expenditures * Schedule X 13
Proprietary capital Schedule XI 14
Long-term debt Schedule XII 15
Current and accrued liabilities Schedule XIII 16
Notes to financial statements Schedule XIV 17
Comparative Income Statement Schedule XV 18
- ----------------------------
Analysis of billing - associated companies * Account 457 19
Analysis of billing - nonassociated companies * Account 458 20
Analysis of charges for service - associated
and nonassociated companies Schedule XVI 21
Schedule of expenses by department or service
function * Schedule XVII 22-23
Departmental analysis of salaries * Account 920 24
Outside services employed Account 923 25
Employee pensions and benefits * Account 926 26
Other administrative & general expenses Account 930 27
Rents Account 931 28
Taxes Account 408 29
Donations * Account 426.1 30
Other deductions * Account 426.5 31
Notes to statement of income Schedule XVIII 32
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
--------------------------------------------
Organization Chart 33
Method of Allocation * 34
Annual Statement of Compensation For Use of Capital Billed * 35
Signature Page 36
* The information on these schedules is not applicable to the Company's line of
business for the year 1994.
-2-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES (COE)
SCHEDULE I - COMPARATIVE BALANCE SHEET
<TABLE>
<CAPTION>
Give balance sheet of the Company as of December 31 of the current and prior year.
- -----------------------------------------------------------------------------------------
ACCOUNT* ASSETS AND OTHER DEBITS AS OF DECEMBER 31
- -----------------------------------------------------------------------------------------
1994 1993
(Thousands of Dollars)
<S> <C> <C>
PROPERTY
--------
101 Property (Schedule II) 52 52
----------- -----------
108 Less accumulated provision for depreciation and
amortization of property (Schedule III) 45 43
----------- -----------
Net Property 7 9
----------- -----------
INVESTMENTS
-----------
124 Other investments (Schedule IV) 11,137 6,913
----------- -----------
Total Investments 11,137 6,913
----------- -----------
CURRENT AND ACCRUED ASSETS
--------------------------
131 Cash 5,913 1,703
134 Special deposits 0 0
135 Working funds 0 0
136 Temporary cash investments (Schedule IV) 0 0
141 Notes receivable 0 0
143 Accounts receivable 0 829
144 Accumulated provision of uncollectible accounts 0 0
146 Accounts receivable from associated companies (Schedule V) 590 2,515
165 Prepayments 0 0
174 Miscellaneous current and accrued assets (Schedule VIII) 0 0
----------- -----------
Total Current and Accrued Assets 6,503 5,047
----------- -----------
DEFERRED DEBITS
---------------
181 Unamortized debt expense 0 0
184 Clearing accounts 0 0
186 Miscellaneous deferred debits (Schedule IX) 837 929
190 Accumulated deferred income taxes 529 399
197 Deferred development costs 2,368 4,200
----------- -----------
Total Deferred Debits 3,734 5,528
----------- -----------
TOTAL ASSETS AND OTHER DEBITS 21,381 17,497
=========== ===========
* The Uniform System of Accounts (USA) for mutual and subsidiary companies is not
relevant to COE and its activities. The Federal Energy Regulatory Commission USA
is used throughout this filing.
</TABLE>
-3-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
SCHEDULE I - COMPARATIVE BALANCE SHEET
<TABLE>
<CAPTION>
Give balance sheet of the Company as of December 31 of the current and prior year.
- -----------------------------------------------------------------------------------------
ACCOUNT* LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31
- -----------------------------------------------------------------------------------------
1994 1993
(Thousands of Dollars)
<S> <C> <C>
PROPRIETARY CAPITAL
-------------------
201 Common stock issued (Schedule XI) 0 0
211 Miscellaneous paid-in-capital (Schedule XI) 31,211 22,958
215 Appropriated retained earnings (Schedule XI) 0 0
216 Unappropriated retained earnings (Schedule XI) (12,489) (7,712)
----------- -----------
Total Proprietary Capital 18,722 15,246
----------- -----------
253 Minority interest in common equity in subsidiaries 36 41
----------- -----------
CURRENT AND ACCRUED LIABILITIES
-------------------------------
231 Notes payable 0 0
232 Accounts payable 1,091 964
233 Notes payable to associated companies (Schedule XIII) 0 0
234 Accounts payable to associated companies (Schedule XIII) 567 94
236 Taxes accrued 869 1,126
237 Interest accrued 0 0
238 Dividends declared 0 0
241 Tax collections payable (Schedule XIII) 96 26
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 0 0
----------- -----------
Total Current and Accrued Liabilities 2,623 2,210
----------- -----------
DEFERRED CREDITS
----------------
253 Other deferred credits 0 0
255 Accumulated deferred investment tax credits 0 0
----------- -----------
Total Deferred Credits 0 0
----------- -----------
282 ACCUMULATED DEFERRED INCOME TAXES 0 0
--------------------------------- ----------- -----------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 21,381 17,497
=========== ===========
* The Uniform System of Accounts (USA) for mutual and subsidiary companies is not
relevant to COE and its activities. The Federal Energy Regulatory Commission USA
is used throughout this filing.
</TABLE>
-4-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
SCHEDULE II - PROPERTY
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
BALANCE AT RETIREMENTS BALANCE
BEGINNING OR OTHER AT CLOSE
DESCRIPTION OF YEAR ADDITIONS SALES CHANGES(1) OF YEAR
- -----------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C>
PROPERTY
- --------
Account
- -------
301 ORGANIZATION 52 0 0 0 52
303 MISCELLANEOUS INTANGIBLE PLANT
304 LAND AND LAND RIGHTS
305 STRUCTURES AND IMPROVEMENTS
306 LEASEHOLD IMPROVEMENTS
307 EQUIPMENT
308 OFFICE FURNITURE AND EQUIPMENT
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT
310 AIRCRAFT AND AIRPORT EQUIPMENT
311 OTHER PROPERTY
---------- --------- ----------- ---------- --------
SUB-TOTAL 52 0 0 0 52
---------- --------- ----------- ---------- --------
107 CONSTRUCTION WORK IN
PROGRESS
---------- --------- ----------- ---------- --------
TOTAL 52 0 0 0 52
========== ========= =========== ========== ========
- -----------------------------------------------------------------------------------------
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
</TABLE>
-5-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF PROPERTY
------------------------------------------
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
ADDITIONS OTHER
BALANCE AT CHARGED CHANGES BALANCE
BEGINNING TO ADD AT CLOSE
DESCRIPTION OF YEAR ACCT 403 RETIREMENTS (DEDUCT)(1) OF YEAR
- -------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C>
Account
- -------
301 ORGANIZATION 43 2 0 0 45
303 MISCELLANEOUS INTANGIBLE PLANT
304 LAND AND LAND RIGHTS
305 STRUCTURES AND IMPROVEMENTS
306 LEASEHOLD IMPROVEMENTS
307 EQUIPMENT
308 OFFICE FURNITURE AND FIXTURES
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT
310 AIRCRAFT AND AIRPORT EQUIPMENT
311 OTHER PROPERTY
---------- --------- ----------- ---------- ----------
TOTAL 43 2 0 0 45
========== ========= =========== ========== ==========
- -------------------------------------------------------------------------------------------
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
</TABLE>
-6-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
SCHEDULE IV - INVESTMENTS
INSTRUCTIONS: Complete the following schedule concerning investments.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- ---------------------------------------------------------------------------------------
(THOUSANDS OF DOLLARS)
<S> <C> <C>
ACCOUNT 124 - INVESTMENTS
Tucuman Project - Argentina 0 5,000
Encoe (Teesside) - United Kingdom 4,232 3,888
Paris, Texas Cogeneration Plant 2,681 2,087
Other investment activity
-currency translation - United Kingdom 0 162
----------- ----------
TOTAL 6,913 11,137
=========== ==========
</TABLE>
-7-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATED COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable from
each associate company.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- ------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ASSOCIATED COMPANIES
ACCOUNTS RECEIVABLE FROM ASSOCIATED COMPANIES
- ---------------------------------------------
Northeast Utilities 1,950 0
Northeast Utilities Service Company (NUSCO) 565 0
The Connecticut Light and Power Company 0 590
---------- -----------
TOTAL 2,515 590
========== ===========
</TABLE>
-8-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
SCHEDULE VI - FUEL STOCK EXPENSES UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to
fuel stock expenses during the year and indicate amount attributable to each
associate company. Under the section headed "Summary" listed below, give an
overall report of the fuel functions performed by the service company.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
DESCRIPTION LABOR EXPENSES TOTAL
- --------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C>
ACCOUNT 152 - FUEL STOCK EXPENSES
UNDISTRIBUTED
------- ------- -------
TOTAL 0 0 0
======= ======= =======
Not applicable to the Company's line of business in 1994.
</TABLE>
-9-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to
stores expense during the year and indicate amount attributable to each
associate company.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
DESCRIPTION LABOR EXPENSES TOTAL
- --------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C>
ACCOUNT 163 - STORES EXPENSE
UNDISTRIBUTED
------- ------- -------
TOTAL 0 0 0
======= ======= =======
Not applicable to the Company's line of business in 1994.
</TABLE>
-10-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
SCHEDULE VIII
MISCELLANEOUS CURRENT AND ACCRUED ASSETS
INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000
may be grouped, showing the number of items in each group.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- ----------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
ACCOUNT 174 - MISCELLANEOUS CURRENT AND ACCRUED ASSETS 0 0
----------- ----------
TOTAL 0 0
=========== ==========
</TABLE>
-11-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
SCHEDULE IX
MISCELLANEOUS DEFERRED DEBITS
INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000
may be grouped, showing the number of items in each group.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- -----------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS
Settlement costs 871 748
Goodwill from investment in subsidiary 38 58
Automated system development 13 9
Other 7 22
----------- ----------
TOTAL 929 837
=========== ==========
</TABLE>
-12-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
SCHEDULE X
RESEARCH, DEVELOPMENT, OR DEMONSTRATION EXPENDITURES
INSTRUCTIONS: Provide a description of each material research, development, or
demonstration project which incurred costs by the service
corporation during the year.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
DESCRIPTION AMOUNT
- ------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C>
ACCOUNT 188 - RESEARCH, DEVELOPMENT OR
DEMONSTRATION EXPENDITURES
-------------
TOTAL 0
=============
Not applicable to the Company's line of business in 1994.
</TABLE>
-13-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
SCHEDULE XI
PROPRIETARY CAPITAL
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
NUMBER OF PAR OR STATED OUTSTANDING CLOSE OF PERIOD
ACCOUNT SHARES VALUE ---------------------------
NUMBER CLASS OF STOCK AUTHORIZED PER SHARE NO. OF SHARES TOTAL AMOUNT
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
201 COMMON STOCK ISSUED 5,000 1.00 100 100.00
- ------------------------------------------------------------------------------------------
INSTRUCTIONS: Classify amounts in each account with brief explanation, disclosing the
general nature of transactions which give rise to the reported amounts.
- ------------------------------------------------------------------------------------------
DESCRIPTION AMOUNT
- ------------------------------------------------------------------------------------------
(Thousands of Dollars)
ACCOUNT 207 - PREMIUM ON CAPITAL STOCK 10
ACCOUNT 211 - MISCELLANEOUS PAID-IN-CAPITAL 31,201
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS 0
--------------
TOTAL 31,211
==============
- ------------------------------------------------------------------------------------------
INSTRUCTIONS: Give particulars concerning net income or (loss) during the year,
distinguishing between compensation for the use of capital owed or net loss
remaining from servicing nonassociated per the General Instructions of the
Uniform Systems of Accounts. For dividends paid during the year in cash or
otherwise, provide rate pecentage, amount of dividend, date declared and
date paid.
- ------------------------------------------------------------------------------------------
BALANCE AT NET INCOME BALANCE AT
BEGINNING OR DIVIDENDS CLOSE
DESCRIPTION OF YEAR (LOSS) PAID OF YEAR
- ------------------------------------------------------------------------------------------
(Thousands of Dollars)
ACCOUNT 216-UNAPPROPRIATED RETAINED
EARNINGS (7,712) (4,777) 0 (12,489)
======== ======== ======== =========
</TABLE>
-14-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
SCHEDULE XII
LONG-TERM DEBT
INSTRUCTIONS: Advances from associate companies should be reported separately
for advances on notes and advances on open account. Names of associate companies
from which advances were received shall be shown under the class and series of
obligation column. For Account 224 -- Other long-term debt, provide the name of
creditor company or organization, terms of obligation, date of maturity,
interest rate, and the amount authorized and outstanding.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
TERMS OF OBLIG. DATE BALANCE AT BALANCE AT
CLASS & SERIES OF INTEREST AMOUNT BEGINNING CLOSE
NAME OF CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR ADDITIONS DEDUCTIONS OF YEAR
- ---------------------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C>
ACCOUNT 223-ADVANCES FROM
ASSOCIATE
COMPANIES: 0 0 0 0 0
ACCOUNT 224-OTHER
LONG-TERM
DEBT: 0 0 0 0 0
------ ------ ------ ------ ------
0 0 0 0 0
====== ====== ====== ====== ======
</TABLE>
-15-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES
INSTRUCTIONS: Provide balance of notes and accounts payable to each associate
company. Give description and amount of miscellaneous current and accrued
liabilities. Items less than $10,000 may be grouped, showing the number of items
in each group.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- ------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES
Northeast Utilities Service Company (NUSCO) 94 333
The Connecticut Light and Power Company 0 234
----------- ----------
TOTAL 94 567
=========== ==========
ACCOUNT 241 - TAX COLLECTIONS PAYABLE 26 96
=========== ==========
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES 0 0
=========== ==========
</TABLE>
-16-
INSTRUCTIONS: The space below is provided for important notes regarding the
financial statements or any account thereof. Furnish
particulars as to any significant contingent assets or
liabilities existing at the end of the year. Notes relating to
financial statements shown elsewhere in this report may be
indicated here by reference.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. PRINCIPLES OF CONSOLIDATION
The consolidated financial statements of Charter Oak Energy,
Incorporated and Subsidiaries (the company or COE) include the
accounts of all wholly owned and majority owned subsidiaries.
Significant intercompany transactions have been eliminated in
consolidation. COE is a subsidiary of Northeast Utilities (NU or
the system). COE has no employees.
COE, directly and through its subsidiaries, develops and invests in
cogeneration, small power production, and in exempt wholesale
generators (EWGs) and foreign utility companies (FUCOs), as permitted
under the Energy Policy Act of 1992. Charter Oak Paris, Inc., COE
Development Corporation, COE (UK) Corp., COE (GENCOE) Corp., COE
Argentina I Corp., and COE Argentina II Corp., are the subsidiaries
comprising COE.
Northeast Utilities Service Company (NUSCO), a wholly owned subsidiary
of NU, provides substantial support services to COE. NUSCO supplies
centralized accounting, administrative, data processing, engineering,
financial, legal, operational, planning, purchasing, and other services
to COE.
All transactions among affiliated companies are on a recovery of cost
basis, which may include amounts representing a return on equity, and
are subject to approval of various federal and state regulatory
agencies.
B. PUBLIC UTILITY REGULATION
NU is registered with the Securities and Exchange Commission as a
holding company under the Public Utility Holding Company Act of 1935
(the 1935 Act), and it and its subsidiaries, including COE, are subject
to the provisions of the 1935 Act.
C. CAPITAL CONTRIBUTIONS
As authorized by the SEC, NU will make capital contributions of an
approved amount for preliminary development activities and for
acquisitions of interests in specified power projects (i.e., EWGs and
FUCOs). Through December 31, 1994, the SEC authorized NU to make
investments in COE in an amount up to $100 million. As of December 31,
1994, NU had made approximately $31 million in capital contributions to
COE.
D. DEFERRED DEVELOPMENT COSTS
COE Development Corporation incurs costs for preliminary development
activities related to the acquisition of interests in EWGs and FUCOs.
The acquisition of interests in EWG and FUCO projects are subject to
approval by the SEC. Preliminary development costs incurred in
conjunction with EWG or FUCO projects that are expected to be
successfully completed are deferred and subsequently transferred to a
special purpose subsidiary. All other preliminary development costs
are expensed when it has been determined that the project is not
considered viable. As of December 31, 1994 and 1993, COE's deferred
development costs totaled approximately $2.4 million and $4.2
million, respectively.
2. INVESTMENTS IN EWGS AND FUCOS
A. PARIS, TEXAS EWG PROJECT
COE, through its wholly owned subsidiary Charter Oak (Paris), Inc., has
a ten percent equity ownership interest in a 213-megawatt gas-fired
operational qualifying cogeneration facility in Paris, Texas. As of
December 31, 1994 and 1993, Charter Oak (Paris), Inc.'s investment in
this project totaled approximately $2.1 million and $2.7 million,
respectively.
B. TEESSIDE FUCO PROJECT
On September 30, 1993, Charter Oak (UK) Corp. and Charter Oak (GENCOE)
Corp. acquired a 50 percent ownership interest in Encoe Partners.
Encoe Partners was formed for the sole purpose of building, owning, and
operating a 2.176 MW power generating facility in the United Kingdom,
as well as acquiring a one-third interest in certain rights and
obligations under a power contract. This power generating facility
will produce power by harnessing the pressure in the natural gas
pipeline feeding the 1,875 MW Teesside Project, in Teesside, Wilton,
Cleveland, England. As of December 31, 1994 and 1993, Charter Oak (UK)
Corp's and COE's ownership share of Charter Oak (GENCOE) Corp.'s
investment in Encoe Partners totaled approximately $3.9 million and
$4.2 million, respectively.
C. TUCUMAN FUCO PROJECT
As of December 31, 1994, COE Development Corporation was engaged in
constructing the 114-MW natural gas-fired Tucuman project located in
the Republic of Argentina. COE Development Corporation's investment in
Tucuman as of December 31, 1994 totaled $5.0 million.
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
FOR THE YEAR ENDED DECEMBER 31, 1994
SCHEDULE XV
COMPARATIVE INCOME STATEMENT
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
ACCOUNT* DESCRIPTION 1994 1993
- --------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
REVENUE
-------
421 Investment income 1,235 987
419 Interest and dividend income 49 23
------------ -----------
Total Revenue 1,284 1,010
------------ -----------
EXPENSE
-------
920 Salaries and wages 275 245
921 Office supplies and expenses 108 61
922 Administrative expense transferred-credit 0 0
923 Outside services employed 62 63
924 Property insurance 0 0
925 Injuries and damages 8 4
926 Employee pensions and benefits 57 74
928 Regulatory commission expense 0 0
930.1 General advertising expenses 0 0
930.2 Miscellaneous general expenses 7,931 6,096
931 Rents 23 11
932 Maintenance of structures and equipment 1 3
403 Depreciation and amortization expense 734 100
408 Taxes other than income taxes 24 19
409 Income taxes (3,038) (2,572)
410 Provision for deferred income taxes 0 0
411 Provision for deferred income taxes-credit (130) 0
411.5 Investment tax credit 0 0
426.1 Donations 0 0
426.5 Other deductions 0 0
427 Interest on long-term debt 0 0
430 Interest on debt to associate companies 0 0
431 Other interest expense 6 4
------------ -----------
Total Expense 6,061 4,108
------------ -----------
Net Income or (Loss) (4,777) (3,098)
============ ===========
* The Uniform System of Accounts (USA) for mutual and subsidiary companies is not
relevant to COE and its activities. The Federal Energy Regulatory Commission USA
is used throughout this filing.
</TABLE>
-18-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
DIRECT INDIRECT COMPENSATION TOTAL
COSTS COSTS FOR USE AMOUNT
NAME OF ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED
- ------------------------------------------------------------------------------
(Thousands of Dollars)
457-1 457-2 457-3
---------------------------------------------
<S> <C> <C> <C> <C>
---------- ---------- ----------- ----------
TOTAL 0 0 0 0
========== ========== =========== ==========
Not applicable to the Company's line of business in 1994.
</TABLE>
-19-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
DIRECT INDIRECT COMPENSATION EXCESS TOTAL
COSTS COSTS FOR USE TOTAL OR AMOUNT
NAME OF NONASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL COSTS DEFICIENCY BILLED
- ------------------------------------------------------------------------------------------
(Thousands of Dollars)
458-1 458-2 458-3 458-4
--------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
-------- -------- ----------- ------- --------- -------
0 0 0 0 0 0
======== ======== =========== ======= ========= =======
Not applicable to the Company's line of business in 1994.
</TABLE>
-20-
ANNUAL REPORT OF CHARTER OAK ENERGY AND
SUBSIDIARIES
For the Year Ended December 31, 1994
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
ASSOCIATED CHARGES NONASSOCIATED CHARGES TOTAL CHARGES FOR SERVICE
-----------------------------------------------------------------------
ACCOUNT DIRECT INDIRECT DIRECT INDIRECT DIRECT INDIRECT
NUMBER DESCRIPTION OF ITEMS COST COST TOTAL COST COST TOTAL COST COST TOTAL
- ------------------------------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C><C> <C> <C> <C><C> <C><C>
920 SALARIES AND WAGES 275 0 275 0 0 0 275 0 275
921 OFFICE SUPPLIES AND EXPENSES 108 0 108 0 0 0 108 0 108
922 ADMINISTRATIVE EXPENSE TRANSFRD-CR 0 0 0 0 0 0 0 0 0
923 OUTSIDE SERVICES EMPLOYED 62 0 62 0 0 0 62 0 62
924 PROPERTY INSURANCE 0 0 0 0 0 0 0 0 0
925 INJURIES AND DAMAGES 8 0 8 0 0 0 8 0 8
926 EMPLOYEE PENSIONS AND BENEFITS 57 0 57 0 0 0 57 0 57
928 REGULATORY COMMISSION EXPENSE 0 0 0 0 0 0 0 0 0
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 7,931 0 7,931 0 0 0 7,931 0 7,931
931 RENTS 23 0 23 0 0 0 23 0 23
932 MAINTENANCE OF STRUCTURES AND EQUIP. 1 0 1 0 0 0 1 0 1
403 DEPRECIATION AND AMORTIZATION EXP. 734 0 734 0 0 0 734 0 734
408 TAXES OTHER THAN INCOME TAXES 24 0 24 0 0 0 24 0 24
409 INCOME TAXES (3,038) 0 (3,038) 0 0 0 (3,038) 0 (3,038)
410 PROVISION FOR DEF INCOME TAXES 0 0 0 0 0 0 0 0 0
411 PROVISION FOR DEF INCOME TAXES-CR (130) 0 (130) 0 0 0 (130) 0 (130)
411.5 INVESTMENT TAX CREDIT 0 0 0 0 0 0 0 0 0
426.1 DONATIONS 0 0 0 0 0 0 0 0 0
426.5 OTHER DEDUCTIONS 0 0 0 0 0 0 0 0 0
427 INTEREST ON LONG-TERM DEBT 0 0 0 0 0 0 0 0 0
431 OTHER INTEREST EXPENSE 6 0 6 0 0 0 6 0 6
-----------------------------------------------------------------------
SUBTOTAL EXPENSES 6,061 0 6,061 0 0 0 6,061 0 6,061
430 INTEREST ON DEBT TO ASSOC. COMPANIES
419 INTEREST AND DIVIDEND INCOME (49) (49) (49) 0 (49)
421 MISCELLANEOUS INCOME - CREDIT (1,235) (1,235) (1,235) 0 (1,235)
NET INCOME (LOSS) (4,777) (4,777) (4,777) 0 (4,777)
-----------------------------------------------------------------------
TOTAL COST OF SERVICE 0 0 0 0 0 0 0 0 0
=======================================================================
INSTRUCTION: Total cost of service will equal for associate and nonassociate companies the total amount billed
under their separate analysis of billing schedules.
</TABLE>
-21-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
ACCOUNT TOTAL -------------------------------
NUMBER DESCRIPTION OF ITEMS AMOUNT OVERHEAD (1) (2) (3)
- ---------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES 275
921 OFFICE SUPPLIES AND EXPENSES 108
922 ADMINISTRATIVE EXPENSE TRANSFERRED-CR 0
923 OUTSIDE SERVICES EMPLOYED 62
924 PROPERTY INSURANCE 0
925 INJURIES AND DAMAGES 8
926 EMPLOYEE PENSIONS AND BENEFITS 57
928 REGULATORY COMMISSION EXPENSE 0
930.1 GENERAL ADVERTISING EXPENSES 0
930.2 MISCELLANEOUS GENERAL EXPENSES 7,931
931 RENTS 23 Not applicable to the Company's
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 1 line of business in 1994.
403 DEPRECIATION AND AMORTIZATION EXPENSE 734
408 TAXES OTHER THAN INCOME TAXES 24
409 INCOME TAXES (3,038)
410 PROVISION FOR DEFERRED INCOME TAXES 0
411 PROVISION FOR DEFERRED INCOME TAXES-CR (130)
411.5 INVESTMENT TAX CREDIT 0
426.1 DONATIONS 0
426.5 OTHER DEDUCTIONS 0
427 INTEREST ON LONG-TERM DEBT 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0
431 OTHER INTEREST EXPENSE 6
-----------------------------------------------
TOTAL EXPENSES 6,061 0 0 0 0
===============================================
INSTRUCTIONS: Indicate each department or service function. (See Instruction 01-3
General Structure of Accounting System: Uniform System of Accounts)
See page 23 for explanation of above service functions.
</TABLE>
-22-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
SCHEDULE XVII
-------------
KEYS FOR SERVICE FUNCTIONS
--------------------------
SERVICE FUNCTION
----------------
Not applicable to the Company's line of business in 1994.
-23-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
DEPARTMENTAL ANALYSIS OF SALARIES
---------------------------------
ACCOUNT 920
<TABLE>
<CAPTION>
DEPARTMENTAL SALARY EXPENSE
NAME OF DEPARTMENT INCLUDED IN AMOUNTS BILLED TO NUMBER OF
- ----------------------------------------------------------------- PERSONNEL
Indicate each dept. TOTAL PARENT OTHER NON END
or service function. AMOUNT COMPANY ASSOCIATES ASSOCIATES OF YEAR
- --------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C>
NUSCO billing * 275 0 275 0 0
--------------------------------------------------
275 0 275 0 0
==================================================
* NUSCO employees perform services for Charter Oak Energy and its
subsidiaries and all related expenses are billed to each company
by NUSCO.
Not applicable to the Company's line of business in 1994.
</TABLE>
-24-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed.
If the aggregate amounts paid to any one payee and included within one
subaccount is less than $25,000, only the aggregate number and amount of all
such payments included within the subaccount need be shown. Provide a subtotal
for each type of service.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
RELATIONSHIP
"A"-ASSOCIATE
"NA"-NON
FROM WHOM PURCHASED ASSOCIATE AMOUNT
- -----------------------------------------------------------------------------------------
(Thousands
of Dollars)
<S> <C>
Legal services (5 payees) NA 27
Miscellaneous (14 payees) NA 35
-----------
62
===========
</TABLE>
-25-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
EMPLOYEE PENSIONS AND BENEFITS
ACCOUNT 926
INSTRUCTIONS: Provide a listing of each pension plan and benefit
program provided by the service company. Such
listing should be limited to $25,000.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
DESCRIPTION AMOUNT
- ------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C>
NUSCO billing * 57
-------------
TOTAL 57
=============
* NUSCO employees perform services for Charter Oak Energy and its
subsidiaries and all related expenses are billed to each company
by NUSCO.
Not applicable to the Company's line of business in 1994.
</TABLE>
-26-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31,
1994
MISCELLANEOUS GENERAL EXPENSES
ACCOUNT 930
INSTRUCTIONS: Provide a listing of the amount included in Account 930,
"Miscellaneous General Expenses," classifying such expenses
according to their nature. Payments and expenses permitted
by Section 321(b)(2) of the Federal Election Campaign Act,
as amended by Public Law 94-283 in 1976 (2 U.S.C. Section
441(b)(2)) shall be separately classified.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
DESCRIPTION AMOUNT
- -----------------------------------------------------------------------------------
(Thousands
of Dollars)
<S> <C>
Project expenses 7,703
NUSCO billing 153
Administrative services 92
Miscellaneous (17)
-----------
TOTAL 7,931
===========
</TABLE>
-27-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
RENTS
ACCOUNT 931
INSTRUCTIONS: Provide a listing of the amount included in Account 931,
"Rents," classifying such expenses by major groupings of
property, as defined in the account definition of the
Uniform System of Accounts.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
TYPE OF PROPERTY AMOUNT
- ------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C>
Buildings/office space 19
NUSCO billing 4
---------
TOTAL 23
=========
</TABLE>
-28-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
TAXES OTHER THAN INCOME TAXES
ACCOUNT 408
INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other Than
Income Taxes." Separate the analysis into two groups:
(1) Other than U.S. Government taxes, and (2) U.S.
Government taxes. Specify each of the various kinds of
taxes and show the amounts thereof. Provide a subtotal
for each class of tax.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
KIND OF TAX AMOUNT
- -------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C>
(1) Other Than U.S. Government Taxes:
NUSCO billing 23
Connecticut Sales Tax 1
---------
Sub-Total 24
---------
(2) U.S. Government Taxes:
Federal Insurance Contribution Act 0
Medicare Tax 0
Federal Unemployment 0
---------
Sub-Total 0
---------
TOTAL 24
=========
</TABLE>
-29-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
DONATIONS
ACCOUNT 426.1
INSTRUCTIONS: Provide a listing of the amount included in Account 426.1,
"Donations," classifying such expenses by its purpose. The aggregate number and
amount of all items of less than $3,000 may be shown in lieu of details.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
- ---------------------------------------------------------------------------------------
(Thousands
of Dollars)
<S> <C>
------------
TOTAL 0
============
Not applicable to the Company's line of business in 1994.
</TABLE>
-30-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
OTHER DEDUCTIONS
ACCOUNT 426.5
INSTRUCTIONS: Provide a listing of the amount included in Account 426.5,
"Other Deductions," classifying such expenses according
to their nature.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
DESCRIPTION NAME OF PAYEE AMOUNT
- ---------------------------------------------------------------------------
(Thousands
of Dollars)
<S> <C>
--------
TOTAL 0
========
Not applicable to the Company's line of business in 1994.
</TABLE>
-31-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
For the Year Ended December 31, 1994
SCHEDULE XVIII
NOTES TO STATEMENTS OF INCOME
INSTRUCTIONS: The space below is provided for important notes regarding the
statement of income or any account thereof. Furnish
particulars as to any significant increases in services rendered
or expenses incurred during the year. Notes relating to
financial statements shown elsewhere in this report may be
indicated here by reference.
See Notes to Financial Statements on pages 17 through 17B.
-32-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
ORGANIZATION CHART (AS OF DECEMBER 31, 1994)
Charter Oak Energy, Inc. (COE)
Charter Oak (Paris) Inc. - 100%
COE Development Corporation - 100%
COE (UK) Corp. - 79.9% by COE and 20.1% by Gencoe
COE (Gencoe) Corp. - 49% by COE
COE Argentina I Corp. - 100%
COE Argentina II Corp. - 100%
-33-
CHARTER OAK ENERGY AND SUBSIDIARIES
-----------------------------------
METHODS OF ALLOCATION
---------------------
For the year ended December 31, 1994
------------------------------------
Not applicable to the Company's line of business in 1994.
-34-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
Not applicable to the Company's line of business in 1994.
-35-
ANNUAL REPORT OF CHARTER OAK ENERGY AND SUBSIDIARIES
SIGNATURE CLAUSE
Pursuant to the requirements of the Public Utility Holding Company Act of 1935
and the rules and regulations of the Securities and Exchange Commission issued
thereunder, the undersigned company has duly caused this report to be signed on
its behalf by the undersigned officer thereunto duly authorized.
CHARTER OAK ENERGY, INC.
------------------------
(Name of Reporting Company)
By: /s/ John W. Noyes
------------------
(Signature of Signing Officer)
John W. Noyes - Vice President and Controller
---------------------------------------------
(Printed Name and Title of Signing Officer)
Date: April 25, 1995
---------------------
<TABLE> <S> <C>
<ARTICLE>OPUR2
<CIK>0000888707
<NAME>CHARTER OAK ENERGY, INC. AND SUBSIDIARIES
<MULTIPLIER>1,000
<S> <C> <C>
<PERIOD-TYPE> YEAR YEAR
<FISCAL-YEAR-END> DEC-31-1994 DEC-31-1993
<PERIOD-END> DEC-31-1994 DEC-31-1993
<BOOK-VALUE> PER-BOOK PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 7 0
<TOTAL-INVESTMENTS> 11,137 0
<TOTAL-CURRENT-ASSETS> 6,503 0
<TOTAL-DEFERRED-DEBITS> 3,734 0
<OTHER-ASSETS-AND-DEBITS> 0 0
<TOTAL-ASSETS-AND-DEBITS> 21,381 0
<TOTAL-PROPRIETARY-CAPITAL> 18,722 0
<TOTAL-LONG-TERM-DEBT> 0 0
<NOTES-PAYABLE> 0 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 0 0
<OTHER-CURR-AND-ACCRUED-LIAB> 2,623 0
<TOTAL-DEFERRED-CREDITS> 0 0
<DEFERRED-INCOME-TAX> 0 0
<TOT-LIABIL-AND-PROPRIET-CAP> 21,381 0
<SERVICES-ASSOCIATE-COMPANIES> 0 0
<SERVICES-NON-ASSOCIATE-COMP> 0 0
<MISC-INCOME-OR-LOSS> 1,284 0
<TOTAL-INCOME> 1,284 0
<SALARIES-AND-WAGES> 275 0
<EMPLOYEE-PENSION-AND-BENEFIT> 57 0
<OTHER-EXPENSES> 5,729 0
<TOTAL-EXPENSES> 6,061 0
<NET-INCOME> (4,777) 0
<TOTAL-EXPENSES-DIRECT-COST> 6,061 0
<TOTAL-EXPENSES-INDIRECT-COST> 0 0
<TOT-EXP-DIRECT-AND-INDIRECT> 6,061 0
<PERSONNEL-END-OF-YEAR> 0 0
</TABLE>
