Form U -13 - 60
Mutual and Subsidiary Service Companies
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1994 and Ending December 31, 1994
TO THE
U. S. SECURITIES AND EXCHANGE COMMISSION
OF
NORTH ATLANTIC ENERGY SERVICE CORPORATION
A Subsidiary Service Company
Date of Incorporation - April 1, 1992
State of Sovereign Power under which Incorporated or
Organized - New Hampshire
Location of Principal Executive Offices of Reporting Company
Route 1, Lafayette Rd., Seabrook, NH 03874
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 Whose Subsidiaries
are served by Reporting Company
NORTHEAST UTILITIES
INSTRUCTIONS FOR USE ON FORM U-13-60
1. TIME OF FILING
Rule 94 provides that on or before the first day of May in each calendar
year, each mutual service company and each subsidiary service company as to
which the Commission shall have made a favorable finding pursuant to Rule 88,
and every service company whose application for approval or declaration
pursuant to Rule 88 is pending shall file with the Commission an annual
report on Form U-13-60 and in accordance with the instructions for that form.
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
The first report filed by any company shall cover the period from the date
the Uniform System of Accounts was required to be made effective as to that
company under Rules 82 and 93 to the end of that calendar year. Subsequent
reports should cover a calendar year.
4. REPORT FORMAT
Reports shall be submitted on the forms prepared by the Commission. 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 210.3-0.1(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 210.3-0.1(c)).
7. MAJOR AMENDMENTS OR CORRECTIONS
Any company desiring to amend or correct a major omission 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
Definitions contained in Instruction 01-8 to the Uniform System of Accounts
for Mutual Service Companies and Subsidiary Service Companies, Public Utility
Holding Company Act of 1935, as amended February 2, 1979 shall be applicable
to words or terms used specifically within this Form U-13-60.
9. ORGANIZATION CHART
The service company shall submit with each annual report a copy of its
current organization chart.
10. METHODS OF ALLOCATION
The service company shall submit with each annual report a listing of the
currently effective methods of allocation being used by the service 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
The service company shall submit with each annual report a copy of the annual
statement supplied to each associate company in support of the amount of
compensation for use in capital billed during the calendar year.
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
---------------------------------------------
Schedule or Page
Description of Schedules and Accounts Acct. No. No.
- ------------------------------------- ------------------- -----
COMPARATIVE BALANCE SHEET Schedule I 4-5
SERVICE COMPANY PROPERTY Schedule II 6-7
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY Schedule III 8
INVESTMENTS Schedule IV 9
ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES Schedule V 10
FUEL STOCK EXPENSES UNDISTRIBUTED Schedule VI 11
STORES EXPENSE UNDISTRIBUTED Schedule VII 12
MISCELLANEOUS CURRENT AND ACCRUED ASSETS Schedule VIII 13
MISCELLANEOUS DEFERRED DEBITS Schedule IX 14
RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES Schedule X 15
PROPRIETARY CAPITAL Schedule XI 16
LONG-TERM DEBT Schedule XII 17
CURRENT AND ACCRUED LIABILTIES Schedule XIII 18
NOTES TO FINANCIAL STATEMENTS Schedule XIV 19
COMPARATIVE INCOME STATEMENT Schedule XV 20
ANALYSIS OF BILLING - ASSOCIATE COMPANIES Account 457 21
ANALYSIS OF BILLING - NONASSOCIATE COMPANIES Account 458 22
ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE
AND NONASSOCIATE COMPANIES Schedule XVI 23
SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE
FUNCTION Schedule XVII 24-25
DEPARTMENTAL ANALYSIS OF SALARIES Account 920 26
OUTSIDE SERVICES EMPLOYED Account 923 27
EMPLOYEE PENSIONS AND BENEFITS Account 926 28
GENERAL ADVERTISING EXPENSES Account 930.1 29
MISCELLANEOUS GENERAL EXPENSES Account 930.2 30
RENTS Account 931 31
TAXES OTHER THAN INCOME TAXES Account 408 32
DONATIONS Account 426.1 33
OTHER DEDUCTIONS Account 426.5 34
NOTES TO STATEMENT OF INCOME Schedule XVIII 35
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
--------------------------------------------
Page
Description of Reports or Statements No.
- ------------------------------------ -----
ORGANIZATION CHART 36
METHODS OF ALLOCATION 37
ANNUAL STATEMENT OF COMPENSATION FOR
USE OF CAPITAL BILLED 38
SIGNATURE PAGE 39
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the current and prior year.
- ----------------------------------------------------------------------------------------
ACCT ASSETS AND OTHER DEBITS AS OF DECEMBER 31
- ----------------------------------------------------------------------------------------
1994 1993
(Thousands of Dollars)
<S> <S> <C> <C>
SERVICE COMPANY PROPERTY
------------------------
101 Service company property (Schedule II) $ 0 $ 0
107 Construction work in progress (Schedule II) 0 0
------------ ------------
Total Service Company Property $ 0 $ 0
------------ ------------
108 Less accumulated provision for depreciation and
amortization of service company property (Schedule III) $ 0 $ 0
------------ ------------
Net Service Company Property $ 0 $ 0
------------ ------------
INVESTMENTS
-----------
123 Investments in associate companies (Schedule IV) $ 0 $ 0
124 Other investments (Schedule IV) 0 0
------------ ------------
Total Investments $ 0 $ 0
------------ ------------
CURRENT AND ACCRUED ASSETS
--------------------------
131 Cash $ 551 $ 387
134 Special deposits 0 0
135 Working funds 18 16
136 Temporary cash investments (Schedule IV) 11 10
141 Notes receivable 0 0
143 Accounts receivable 5,118 4,946
144 Accumulated provision of uncollectible accounts 0 0
146 Accounts receivable from associate companies (Schedule V) 3,359 4,078
152 Fuel stock expenses undistributed (Schedule VI) 0 0
154 Materials and supplies 0 0
163 Stores expense undistributed (Schedule VII) (13) 18
165 Prepayments 3,477 2,141
174 Miscellaneous current and accrued assets (Schedule VIII) 0 0
------------ ------------
Total Current and Accrued Assets $ 12,521 $ 11,596
------------ ------------
DEFERRED DEBITS
---------------
181 Unamortized Debt Expense $ 0 $ 0
184 Clearing accounts 199 392
186 Miscellaneous deferred debits (Schedule IX) 21,396 17,656
188 Research, development, or demonstration
expenditures (Schedule X) 0 0
190 Accumulated deferred income taxes 0 0
------------ ------------
Total Deferred Debits $ 21,595 $ 18,048
------------ ------------
TOTAL ASSETS AND OTHER DEBITS $ 34,116 $ 29,644
============ ============
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the current and prior year.
- ----------------------------------------------------------------------------------------
ACCT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31
- ----------------------------------------------------------------------------------------
1994 1993
(Thousands of Dollars)
<S> <S> <C> <C>
PROPRIETARY CAPITAL
-------------------
201 Common stock issued (Schedule XI) $ 1 $ 1
211 Miscellaneous paid-in-capital (Schedule XI) 9 9
215 Appropriated retained earnings (Schedule XI) 0 0
216 Unappropriated retained earnings (Schedule XI) 0 0
------------ ------------
Total Proprietary Capital $ 10 $ 10
------------ ------------
LONG-TERM DEBT
--------------
223 Advances from associate companies (ScheduleXII) $ 0 $ 0
224 Other long-term debt (Schedule XII) 0 0
225 Unamortized premium on long-term debt 0 0
226 Unamortized discount on long-term debt 0 0
------------ ------------
Total Long-Term Debt $ 0 $ 0
------------ ------------
CURRENT AND ACCRUED LIABILITIES
-------------------------------
231 Notes payable $ 0 $ 0
232 Accounts payable 7,823 7,705
233 Notes payable to associate companies (Schedule XIII) 0 0
234 Accounts payable to associate companies (Schedule XIII) 1,483 1,436
236 Taxes accrued 259 469
237 Interest accrued 0 0
238 Dividends declared 0 0
241 Tax collections payable 2 11
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 19,161 13,724
------------ ------------
Total Current and Accrued Liabilities $ 28,728 $ 23,345
------------ ------------
DEFERRED CREDITS
----------------
253 Other deferred credits $ 5,378 $ 6,289
255 Accumulated deferred investment tax credits 0 0
------------ ------------
Total Deferred Credits $ 5,378 $ 6,289
------------ ------------
282 ACCUMULATED DEFERRED INCOME TAXES $ 0 $ 0
------------ ------------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $ 34,116 $ 29,644
============ ============
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1994
SCHEDULE II - SERVICE COMPANY PROPERTY
- -------------------------------------------------------------------------------------------
BALANCE AT RETIREMENTS BALANCE
BEGINNING OR OTHER AT CLOSE
ACCT DESCRIPTION OF YEAR ADDITIONS SALES CHANGES(1) OF YEAR
- -------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <S>
SERVICE COMPANY PROPERTY
- ------------------------
301 ORGANIZATION
303 MISCELLANEOUS INTANGIBLE PLANT
304 LAND AND LAND RIGHTS
305 STRUCTURES AND IMPROVEMENTS
306 LEASEHOLD IMPROVEMENTS
307 EQUIPMENT (2) NONE
308 OFFICE FURNITURE AND EQUIPMENT
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT
310 AIRCRAFT AND AIRPORT EQUIPMENT
311 OTHER SERVICE COMPANY
PROPERTY (3)
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
NONE
</TABLE>
SCHEDULE II - CONTINUED
-----------------------
(2) SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE
COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT ADDITIONS
DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR:
- -------------------------------------------------------------------------------
BALANCE
AT CLOSE
SUBACCOUNT DESCRIPTION OF YEAR
- -------------------------------------------------------------------------------
NONE
- -------------------------------------------------------------------------------
(3) DESCRIBE OTHER SERVICE COMPANY PROPERTY:
NONE
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1994
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
-------------------------------------------
- --------------------------------------------------------------------------------------------
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> <S>
Account
- -------
301 ORGANIZATION
303 MISCELLANEOUS INTANGIBLE PLANT
304 LAND AND LAND RIGHTS
305 STRUCTURES AND IMPROVEMENTS
306 LEASEHOLD IMPROVEMENTS
307 EQUIPMENT NONE
308 OFFICE FURNITURE AND FIXTURES
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT
310 AIRCRAFT AND AIRPORT EQUIPMENT
311 OTHER SERVICE COMPANY
PROPERTY
AMORTIZATION OF SERVICE COMPANY
PROPERTY
- --------------------------------------------------------------------------------------------
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
NONE
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1994
SCHEDULE IV - INVESTMENTS
INSTRUCTIONS: Complete the following schedule concerning investments.
Under Account 124, "Other Investments," state each investment
separately, with description, including the name of issuing company,
number of shares or principal amount, etc.
Under Account 136, "Temporary Cash Investments," list each investment
separately.
- ------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- ------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
ACCOUNT 123 - INVESTMENT IN ASSOCIATE COMPANIES $ 0 $ 0
ACCOUNT 124 - OTHER INVESTMENTS 0 0
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
Fidelity Institute Tax Exempt Cash Portfolio 10 11
----------- -----------
TOTAL $ 10 $ 11
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1994
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS:Complete the following schedule listing accounts receivable from each
associate company. Where the service company has provided accommoda-
tion or convenience payments for associate companies, a separate listing of
total payments for each associate company by subaccount should be
provided.
- ----------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- ----------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
Northeast Utilities Service Company $ 0 $ 7
The Connecticut Light and Power Company 306 332
Northeast Nuclear Energy Company 0 74
North Atlantic Energy Corporation 2,686 2,945
Public Service Company of New Hampshire 1,086 1
----------- -----------
TOTAL $ 4,078 $ 3,359
=========== ===========
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
NONE
</TABLE>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
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.
- --------------------------------------------------------------------------------
DESCRIPTION LABOR EXPENSES TOTAL
- -------------------------------------------------------------------------------
(Thousands of Dollars)
ACCOUNT 152 - FUEL STOCK EXPENSES NONE
UNDISTRIBUTED
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
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.
- -------------------------------------------------------------------------------------
DESCRIPTION LABOR EXPENSES TOTAL
- -------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C>
ACCOUNT 163 - STORES EXPENSE
UNDISTRIBUTED
Balance at prior year end $ 21 $ (3) $ 18
Amount incurred during the year 1,021 210 1,231
The above stores expenses are billed back to each
of the companies listed below:
Associate Companies:
The Connecticut Light and Power Company (43) (9) (51)
North Atlantic Energy Corporation (377) (77) (454)
Non-Associate Companies (628) (129) (757)
---------- ---------- ----------
TOTAL $ (6) $ (7) $ (13)
========== ========== ==========
</TABLE>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
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.
- --------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- --------------------------------------------------------------------------------
(Thousands of Dollars)
ACCOUNT 174 - MISCELLANEOUS CURRENT NONE
AND ACCRUED ASSETS
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
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.
- --------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- --------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS
Noncurrent receivable from Joint Owner funding $ 12,873 $ 14,273
Accrued construction period Worker's Compensation claims 3,736 2,022
Dept. of Energy waste disposal refund due 5 0
Unbilled services and backcharges related to:
Decommissioning Master Trust 35 52
N.H. P.U.C. work 0 15
Loaned employee 0 18
Programming work 0 32
Outage work 0 20
Miscellaneous (6 items) 19 7
Active Worker's Compensation claims 1 0
North Atlantic Energy Service Corporation Organization Cost 132 94
Accounting Treatment Change for Payroll 448 418
Required bank deposit 0 3
Preliminary Engineering for:
Equipment hatch barrier 0 36
Telephone switch replacement 16 16
Secondary control system modifications 0 17
Security perimeter 0 28
Condensate polishing system 0 4,259
Spent Fuel Pool Upgrades 83 83
Materials System Replacement 307 0
Miscellaneous (1 item) 1 3
---------- ----------
TOTAL $ 17,656 $ 21,396
========== ==========
</TABLE>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
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.
- -------------------------------------------------------------------------------
DESCRIPTION AMOUNT
- -------------------------------------------------------------------------------
(Thousands of Dollars)
ACCOUNT 188 - RESEARCH, DEVELOPMENT OR NONE
DEMONSTRATION EXPENDITURES
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1994
SCHEDULE XI
PROPRIETARY CAPITAL
- -------------------------------------------------------------------------------------
NUMBER OF PAR OR STATED OUTSTANDING CLOSE OF PERIOD
ACCOUNT SHARES VALUE ---------------------------
NUMBER CLASS OF STOCK AUTHORIZED PER SHARE NO. OF SHARES TOTAL AMOUNT
- -------------------------------------------------------------------------------------
(Thousands
of Dollars)
<S> <C> <C> <C> <C>
201 COMMON STOCK ISSUED 1,000 $1.00 1,000 1
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 211 - MISCELLANEOUS PAID-IN-CAPITAL $9
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS 0
-------------
TOTAL $9
=============
- -------------------------------------------------------------------------------------
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 percentage, amount of dividend, date declared and
date paid.
- -------------------------------------------------------------------------------------
BALANCE AT NET INCOME BALANCE
BEGINNING OR DIVIDENDS AT CLOSE
DESCRIPTION OF YEAR (LOSS) PAID OF YEAR
- -------------------------------------------------------------------------------------
(Thousands of Dollars)
ACCOUNT 216-UNAPPROPRIATED RETAINED
EARNINGS
NONE
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
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.
- -----------------------------------------------------------------------------------------------------
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 ADDITIONSDEDUCTIONS(1) OF YEAR
- -----------------------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C>
ACCOUNT 223-ADVANCES FROM
ASSOCIATE COMPANIES $- $- $- $- $-
TOTAL ADVANCES FROM ASSOCIATES
ACCOUNT 224-OTHER
LONG-TERM DEBT
- - - - -
TOTAL OTHER LONG-TERM DEBT
----- ----- ----- ----- -----
$- $- $- $- $-
===== ===== ===== ===== =====
</TABLE>
(1) GIVE AN EXPLANATION OF DEDUCTIONS:
NONE
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
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.
- ----------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- ----------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C>
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES
NONE
- ----------------------------------------------------------------------------------------
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
Northeast Utilities Service Company $ 1,129 $ 1,186
Public Service Company of New Hampshire 307 297
----------- -----------
TOTAL $ 1,436 $ 1,483
=========== ===========
- ----------------------------------------------------------------------------------------
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES
Accrued payroll and other employee payables $ 3,538 $ 2,951
Accrued Pension Cost 8,646 10,793
On-hand operations funding from associate companies:
North Atlantic Energy Corporation 548 1,949
The Connecticut Light & Power Company 62 220
On-hand operations funding from non-associate companies 930 3,248
----------- -----------
TOTAL $ 13,724 $ 19,161
=========== ===========
</TABLE>
ANNUAL REPORT OF NORTHEAST NUCLEAR ENERGY COMPANY
For Year Ended December 31, 1994
SCHEDULE XIV - NOTES TO FINANCIAL STATEMENTS
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
GENERAL
North Atlantic Energy Service Corporation (the Company or North Atlantic) is a
wholly owned subsidiary of Northeast Utilities (NU). The Connecticut Light and
Power Company (CL&P), Western Massachusetts Electric Company, Public Service
Company of New Hampshire (PSNH), and Holyoke Water Power Company are operating
subsidiaries comprising the Northeast Utilities System (the System) and are
wholly owned by NU.
The Company acts as agent in operating the Seabrook Nuclear Power Project (the
Project) pursuant to the Seabrook Project Managing Agent Operating Agreement
(the Managing Agent Agreement). The Project is owned jointly by North Atlantic
Energy Corporation (NAEC) and CL&P, both wholly owned subsidiaries of NU and 9
nonaffiliated New England utility companies as tenants in common with undivided
interests (the Seabrook Joint Owners). The cost of the Project is recorded on
the books of the Joint Owners based upon their proportionate ownership share of
the Project. The Company does not have an ownership interest in the Project.
The Company is only liable for payroll related expenditures and liabilities.
The Seabrook Joint Owners are severally responsible for their respective share
of the costs of operating and maintaining the Project.
Ownership percentages of the Project as of December 31, 1994 are as follows:
OWNERSHIP
PARTICIPANTS SHARE
------------ -----
Canal Electric Company 3.52317%
The Connecticut Light and Power Company 4.05985
Great Bay Power Corporation 12.13240
Hudson Light & Power Department .07737
Massachusetts Municipal Wholesale Electric Company 11.59340
Montaup Electric Company 2.89989
New England Power Company 9.95766
New Hampshire Electric Cooperative, Inc. 2.17391
North Atlantic Energy Corporation 35.98201
Taunton Municipal Lighting Plant .10034
The United Illuminating Company 17.50000
---------
100.00000%
=========
Other wholly owned subsidiaries of NU provide support services to the Company.
Northeast Utilities Service Company (NUSCO) provides certain administrative
support to the Company, pursuant to the Service Agreement between Northeast
Utilities Service Company and North Atlantic Energy Service Corporation acting
as agent for the Joint Owners of Seabrook, as amended, and to other System
companies. Billings from NUSCO recorded by the Company approximated $2,761,000
and $2,005,000 in 1994 and 1993, respectively. PSNH provides certain services
to the Company pursuant to the Service Agreement between Public Service Company
of New Hampshire and North Atlantic Energy Service Corporation acting as agent
for the Joint Owners of Seabrook, as amended. Billings from PSNH recorded by
the Company were approximately $395,000 and $593,000 in 1994 and 1993,
respectively.
Yankee Atomic Electric Company (YAEC) provides services to the Company pursuant
to the Nuclear Support Services Agreement between Yankee Atomic Electric Company
and North Atlantic Energy Service Corporation acting as agent for the Joint
Owners of Seabrook, as amended. Billings from YAEC recorded by the Company
approximated $8,433,000 and $7,019,000 in 1994 and 1993, respectively.
All transactions among affiliated companies, and between YAEC and the Company,
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.
METHOD OF ACCOUNTING
The accompanying financial statements were prepared in accordance with the
Uniform System of Accounts for Mutual and Subsidiary Service Companies,
promulgated pursuant to the Public Utility Holding Company Act of 1935, as
modified. This system of accounts follows, with modifications, the Federal
Energy Regulatory Commission's (the FERC) Uniform System of Accounts and the
Managing Agent Agreement. The financial statements reflect expenses associated
with managing, operating, and maintaining the Project, excluding decommissioning
costs, property taxes, amortization of nuclear fuel, reserves, and book
depreciation. Excluded costs primarily represent costs related to the Project
which are not billed by North Atlantic. Pursuant to the Managing Agent
Agreement, North Atlantic does not earn a return on capital and therefore,
revenues represent the sum of the Company's operating expenses.
Certain amounts in the accompanying financial statements of the Company for the
year ended December 31, 1993, have been reclassified to conform with the
December 31, 1994 presentation.
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 the Company, are subject to the provisions of
the 1935 Act. The Company is a registered utility company in the State of New
Hampshire and is subject to appropriate regulation by the New Hampshire Public
Utilities Commission. The Joint Owners, whom the Company represents as agent,
are subject to further regulation by the FERC. The Company therefore follows
the accounting policies prescribed by the FERC.
2. PENSION AND POSTRETIREMENT BENEFITS
Employees of North Atlantic are covered by NU system's uniform noncontributory-
defined benefit plan covering all of its regular employees. Benefits are based
on years of service and employees' highest compensation during five consecutive
years of employment. The Company's allocated portion of the System's pension
cost for 1994 and 1993, part of which was capitalized and billed as a utility
plant, approximated $2,148,000 and $3,227,000, respectively.
Currently, the System funds annually an amount at least equal to that which will
satisfy the requirements of the Employee Retirement Income Security Act and the
Internal Revenue Code. Pension costs are determined using market-related values
of pension assets. Pension assets are invested primarily in domestic and
international equity securities and bonds.
The components of net pension cost for the Company (in thousands) are:
For the Years Ended
December 31,
1994 1993
---- ----
Service cost $ 2,858 $ 3,659
Interest cost 2,530 2,470
Return on plan assets 60 (4,519 )
Net amortization (3,300) 1,617
-------- --------
Net pension cost $ 2,148 $ 3,227
======== ========
For calculating pension cost, the following actuarial assumptions were used:
For the Years Ended
December 31,
1994 1993
---- ----
Discount rate 7.75% 8.00%
Expected long-term rate of return 8.50 8.50
Compensation/progression rate 4.75 5.00
The following table represents the plan's funded status for the Company at
December 31 (in thousands):
1994 1993
---- ----
Accumulated benefit obligation,
including vested benefits at
December 31, 1994 and 1993
of $15,743,000 and $14,198,000,
respectively $20,938 $ 9,249
======= =======
Projected benefit obligation $35,437 $37,468
Less: Market value of plan assets 34,306 34,964
------- -------
PBO in excess of market value (1,131) (2,504)
Unrecognized transition amount 935 1,007
Unrecognized prior service costs 3,367 3,077
Unrecognized net gain (13,974) (10,226)
------- -------
Accrued pension liability $10,793) $(8,646)
======= =======
The following actuarial assumptions were used in calculating the Company plan's
year end funded status:
1994 1993
---- ----
Discount Rate 8.25% 7.75%
Compensation/progression rate 5.00 4.75
The Company provides certain health care benefits, primarily medical and dental,
and life insurance benefits through a benefit plan to retired employees. These
benefits are available for employees leaving the Company who are otherwise
eligible to retire and have met specified service requirements. On January 1,
1993, the Company adopted the Statement of Financial Accounting Standard No.
106, "Employers Accounting for Postretirement Benefits Other than Pensions"
(SFAS 106) on a prospective basis. The expected cost of postretirement
benefits, primarily health and life insurance benefits are charged to expense
during the years that eligible employees render service. Total health care and
life insurance costs, part of which were capitalized and billed as utility
plant, approximated $1,176,000 in 1994, excluding $68,000 of prepaid
postretirement benefit liability from 1993, and $1,044,000 in 1993.
On January 1, 1993, the accumulated postretirement benefit obligation (APBO)
represented the Company's prior service obligation upon the adoption of SFAS
106. As allowed by SFAS 106, the Company is amortizing its APBO of
approximately $3 million over a 20-year period. For current employees and
certain retirees, the total postretirement benefit is limited to two times the
1993 per-retiree health care costs. The postretirement benefit obligation has
been calculated based on this assumption.
During 1994 and 1993, the Company funded postretirement benefit costs through
external trusts. The trust assets are invested primarily in equity securities
and bonds.
The following table represents the plan's funded status at December 31 (in
thousands):
1994 1993
---- ----
Accumulated postretirement benefit obligation of:
Retirees $ 2,010 $ 1,432
Active employees not eligible
to retire 4,024 2,440
------- -------
Total accumulated postretirement
benefit obligation 6,034 3,872
Less: Market value of plan assets 2,076 1,065
------- -------
Accumulated postretirement benefit
obligation in excess of plan assets (3,958) (2,807)
Unrecognized transition amount 2,840 2,998
Unrecognized net gain 1,118 123
------- -------
Prepaid postretirement benefit
liability $ 0 $ 68
======= =======
The components of health care and life insurance costs for the years ended
December 31 (in thousands) are:
1994 1993
---- ----
Service cost $ 604 $ 504
Interest cost 485 346
Return on plan assets 25 0
Net amortization 62 194
------- -------
Net health care and life
insurance cost $ 1,176 $ 1,044
======= =======
The following actuarial assumptions were used in calculating the plan's year end
funded status:
1994 1993
---- ----
Discount Rate 8.00% 7.75%
Long Term Rate of Return - Health Assets 5.00 5.00
Long Term Rate of Return - Life Assets 8.50 8.50
Health Care Cost Trend Rate 10.20 11.10
The per capita cost of covered health care benefits was assumed to decrease to
5.4 percent by 2002.
The effect of increasing the assumed health care cost trend rates by one
percentage point in each year would increase the accumulated postretirement
benefit obligation as of December 31, 1994 by $291,000 and the aggregate of the
service and interest cost components of net periodic postretirement benefit cost
for the year then ended by $59,000. The trust holding the plan assets is
subject to federal income taxes at a 35-percent tax rate.
3. LEASES
The Company, on behalf of the Seabrook Joint Owners, has entered into operating
lease agreements for certain data processing equipment, office equipment,
vehicles and offsite facilities. The Company does not enter into capital leases
by directive of the Seabrook Joint Owners. Operating lease costs charged to
expense approximated $2,191,000 and $1,907,000 in 1994 and 1993, respectively.
The provisions of these lease agreements generally provide for renewal options.
The Company has no noncancelable leases.
4. FINANCING
Each of the Seabrook Joint Owners is responsible for financing its cost of
participation in the Project in proportion to its respective ownership share.
Such financing is provided to the Project in advance of such costs being
incurred. The Company, therefore, has no long-term or short-term debt.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
FOR THE YEAR ENDED DECEMBER 31, 1994
SCHEDULE XV
COMPARATIVE INCOME STATEMENT
- -----------------------------------------------------------------------------
ACCT DESCRIPTION 1994 1993
- -----------------------------------------------------------------------------
(Thousands of Dollars)
<S> <S> <C> <C>
INCOME
------
457 Services Rendered to Associate Companies $ 62,123 $ 51,170
458 Services Rendered to Nonassociate Companies 93,179 77,953
421 Miscellaneous Income or (Loss) 36 1,278
---------- ----------
Total Income $ 155,338 $ 130,401
---------- ----------
EXPENSE
-------
Nuclear Power Expenses
517 Operation Supervision and Engineering $ 20,967 $ 20,555
518 Nuclear Fuel Expense 5,827 8,501
519 Coolants and Water 711 610
520 Steam Expenses 15,495 12,877
523 Electric Expenses 290 430
524 Miscellaneous Nuclear Power Expenses 30,801 24,239
528 Maintenance Supervision and Engineering 9,297 6,382
529 Maintenance of Structures 4,350 4,256
530 Maintenance of Reactor Plant Equipment 15,166 3,009
531 Maintenance of Electric Plant 8,108 3,897
532 Maintenance of Miscellaneous Nuclear Plant 10,995 7,663
Transmission Expenses
570 Maintenance of Station Equipment 7 68
Administrative and General Expenses
920 Salaries and Wages 4,412 4,988
921 Office Supplies and Expenses 2,479 2,521
922 Administrative Expense Transferred-Credit (86) (37)
923 Outside Services Employed 2,664 2,265
924 Property Insurance 4,677 5,106
925 Injuries and Damages 238 2,102
926 Employee Pensions and Benefits 9,433 11,145
928 Regulatory Commission Expense 4,088 4,543
930.1 General Advertising Expenses 352 343
930.2 Miscellaneous General Expenses 908 742
935 Maintenance of General Plant 0 0
All Other Expenses
408 Taxes Other Than Income Taxes 3,928 4,015
426.1 Donations 99 70
426.5 Other Deductions 132 111
---------- ----------
Total Expense $ 155,338 $ 130,401
---------- ----------
Net Income or (Loss) $ 0 $ 0
========== ==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1994
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
- ---------------------------------------------------------------------------
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>
The Connecticut Light and Power $ 6,242 $ $ $ 6,242
Company
North Atlantic Energy Corporation 55,881 55,881
-------- --------- ------------- --------
TOTAL $62,123 $ 0 $ 0 $62,123
======== ========= ============= ========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1994
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
- -------------------------------------------------------------------------------------------
DIRECT INDIRECT COMPENSATION EXCESS TOTAL
NAME OF COSTS COSTS FOR USE TOTAL OR AMOUNT
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>
Canal Electric Company $ 5,471 $ - $ - $ 5,471 $ - $ 5,471
E U A Power Corporation 18,842 18,842 18,842
Hudson Light & Power Dept. 120 120 120
Massachusetts Municipal Wholesale
Electric Company 18,005 18,005 18,005
Montaup Electric Company 4,504 4,504 4,504
New England Power Company 15,464 15,464 15,464
New Hampshire Electric Coop. 3,376 3,376 3,376
Taunton Municipal Lighting Plant 156 156 156
United Illuminating Company 27,178 27,178 27,178
Vermont Electric Generation &
Transmission Coop., Inc. 63 63 63
------- -------- ------------ -------- ---------- --------
$93,179 $ - $ - $ 93,179 $ - $93,179
======= ======== ============ ======== ========== ========
</TABLE>
INSTRUCTIONS: Provide a brief description of the services rendered to each
nonassociate company:
The Company acts as agent in operating Seabrook Station for the nonassociate
companies.
<TABLE>
<CAPTION>
ANNUAL REPORT OF
NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1994
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
- --------------------------------------------------------------------------
ASSOCIATE COMPANY CHARGES
--------------------------
ACCOUNT DIRECT INDIRECT
NUMBER DESCRIPTION OF ITEMS COST COST TOTAL
- --------------------------------------------------------------------------
<S> (Thousands of Dollars)
Nuclear Power Expenses <C> <C> <C>
517 Operation Supervision and Engineering 8,388 - 8,388
518 Nuclear Fuel Disposal 2,330 2,330
519 Coolants and Water 285 285
520 Steam Expenses 6,198 6,198
523 Electric Expenses 116 116
524 Miscellaneous Nuclear Power Expenses 12,317 12,317
528 Maintenance Supervision and Engineering 3,720 3,720
529 Maintenance of Structures 1,740 1,740
530 Maintenance of Reactor Plant Equipment 6,067 6,067
531 Maintenance of Electric Plant 3,246 3,246
532 Maintenance of Miscellaneous Nuclear Plantt 4,399 4,399
Transmission Expenses
570 Maintenance of Station Equipment 3 3
Administrative and General Expenses
920 Salaries and Wages 1,766 1,766
921 Office Supplies and Expenses 991 991
922 Administrative Expense Transferred-Credit (34) (34)
923 Outside Services Employed 1,066 1,066
924 Property Insurance 1,870 1,870
925 Injuries and Damages 94 94
926 Employee Pensions and Benefits 3,771 3,771
928 Regulatory Commission Expense 1,635 1,635
930.1 General Advertising Expenses 141 141
930.2 Miscellaneous General Expenses 364 364
935 Maintenance of General Plant 0 0
All Other Expenses
408 Taxes Other Than Income Taxes 1,571 1,571
426.1 Donations 40 40
426.5 Other Deductions 53 53
----------------------
TOTAL EXPENSES = 62,137 - 62,137
421 Miscellaneous Non-Operating Income (14) (14)
----------------------
TOTAL COST OF SERVICE = 62,123 - 62,123
======================
</TABLE>
INSTRUCTION: Total cost of service will equal for
associate and nonassociate companies the total
amount billed under their separate analysis of
billing schedules.
<TABLE>
<CAPTION>
ANNUAL REPORT OF
NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1994
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
- ------------------------------------------------------------------------------
NONASSOCIATE COMPANY CHARGES
------------------------------
ACCOUNT DIRECT INDIRECT
NUMBER DESCRIPTION OF ITEMS COST COST TOTAL
- ------------------------------------------------------------------------------
<S> (Thousands of Dollars)
Nuclear Power Expenses <C> <C> <C>
517 Operation Supervision and Engineering 12,579 - 12,579
518 Nuclear Fuel Disposal 3,497 3,497
519 Coolants and Water 426 426
520 Steam Expenses 9,297 9,297
523 Electric Expenses 174 174
524 Miscellaneous Nuclear Power Expenses 18,484 18,484
528 Maintenance Supervision and Engineering 5,577 5,577
529 Maintenance of Structures 2,610 2,610
530 Maintenance of Reactor Plant Equipment 9,099 9,099
531 Maintenance of Electric Plant 4,862 4,862
532 Maintenance of Miscellaneous Nuclear Plant 6,596 6,596
Transmission Expenses
570 Maintenance of Station Equipment 4 4
Administrative and General Expenses
920 Salaries and Wages 2,646 2,646
921 Office Supplies and Expenses 1,488 1,488
922 Administrative Expense Transferred-Credit (52) (52)
923 Outside Services Employed 1,598 1,598
924 Property Insurance 2,807 2,807
925 Injuries and Damages 144 144
926 Employee Pensions and Benefits 5,662 5,662
928 Regulatory Commission Expense 2,453 2,453
930.1 General Advertising Expenses 211 211
930.2 Miscellaneous General Expenses 544 544
935 Maintenance of General Plant 0 0
All Other Expenses
408 Taxes Other Than Income Taxes 2,357 2,357
426.1 Donations 59 59
426.5 Other Deductions 79 79
-----------------------------
TOTAL EXPENSES = 93,201 - 93,201
421 Miscellaneous Non-Operating Income (22) (22)
-----------------------------
TOTAL COST OF SERVICE = 93,179 - 93,179
=============================
</TABLE>
INSTRUCTION: Total cost of service will equal for
associate and nonassociate companies the total
amount billed under their separate analysis of
billing schedules.
<TABLE>
<CAPTION>
ANNUAL REPORT OF
NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1994
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
- -----------------------------------------------------------------------------
TOTAL CHARGES FOR SERVICE
-----------------------------
ACCOUNT DIRECT INDIRECT
NUMBER DESCRIPTION OF ITEMS COST COST TOTAL
- -----------------------------------------------------------------------------
<S> (Thousands of Dollars)
Nuclear Power Expenses <C> <C> <C>
517 Operation Supervision and Engineering 20,967 - 20,967
518 Nuclear Fuel Disposal 5,827 5,827
519 Coolants and Water 711 711
520 Steam Expenses 15,495 15,495
523 Electric Expenses 290 290
524 Miscellaneous Nuclear Power Expenses 30,801 30,801
528 Maintenance Supervision and Engineering 9,297 9,297
529 Maintenance of Structures 4,350 4,350
530 Maintenance of Reactor Plant Equipment 15,166 15,166
531 Maintenance of Electric Plant 8,108 8,108
532 Maintenance of Miscellaneous Nuclear Plant 10,995 10,995
Transmission Expenses
570 Maintenance of Station Equipment 7 7
Administrative and General Expenses
920 Salaries and Wages 4,412 4,412
921 Office Supplies and Expenses 2,479 2,479
922 Administrative Expense Transferred-Credit (86) (86)
923 Outside Services Employed 2,664 2,664
924 Property Insurance 4,677 4,677
925 Injuries and Damages 238 238
926 Employee Pensions and Benefits 9,433 9,433
928 Regulatory Commission Expense 4,088 4,088
930.1 General Advertising Expenses 352 352
930.2 Miscellaneous General Expenses 908 908
935 Maintenance of General Plant 0 0
All Other Expenses
408 Taxes Other Than Income Taxes 3,928 3,928
426.1 Donations 99 99
426.5 Other Deductions 132 132
-------------------------
TOTAL EXPENSES = 155,338 - 155,338
421 Miscellaneous Non-Operating Income (36) (36)
-------------------------
TOTAL COST OF SERVICE = 155,302 - 155,302
=========================
</TABLE>
INSTRUCTION: Total cost of service will equal for
associate and nonassociate companies the total
amount billed under their separate analysis of
billing schedules.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1994
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
- --------------------------------------------------------------------------------------
SERVICE
FUNCTION
ACCOUNT TOTAL SEABROOK
NUMBER DESCRIPTION OF ITEMS AMOUNT OVERHEAD STATION
- --------------------------------------------------------------------------------------
(Thousands of Dollars)
<S> <C> <C> <C>
Nuclear Power Expenses
517 Operation Supervision and Engineering $ 20,967 $ $ 20,967
518 Nuclear Fuel Disposal 5,827 5,827
519 Coolants and Water 711 711
520 Steam Expenses 15,495 15,495
523 Electric Expenses 290 290
524 Miscellaneous Nuclear Power Expenses 30,801 30,801
528 Maintenance Supervision and Engineering 9,297 9,297
529 Maintenance of Structures 4,350 4,350
530 Maintenance of Reactor Plant Equipment 15,166 15,166
531 Maintenance of Electric Plant 8,108 8,108
532 Maintenance of Miscellaneous Nuclear Plant 10,995 10,995
Transmission Expenses
570 Maintenance of Station Equipment 7 7
Administrative and General Expenses
920 Salaries and Wages 4,412 4,412
921 Office Supplies and Expenses 2,479 2,479
922 Administrative Expense Transferred-Credit (86) (86)
923 Outside Services Employed 2,664 2,664
924 Property Insurance 4,677 4,677
925 Injuries and Damages 238 238
926 Employee Pensions and Benefits 9,433 9,433
928 Regulatory Commission Expense 4,088 4,088
930.1 General Advertising Expenses 352 352
930.2 Miscellaneous General Expenses 908 908
935 Maintenance of General Plant 0 0
All Other Expenses
408 Taxes Other Than Income Taxes 3,928 3,928
426.1 Donations 99 99
426.5 Other Deductions 132 132
---------- --------- ----------
TOTAL EXPENSES $ 155,338 $ 0 $155,338
========== ========= ==========
INSTRUCTIONS: Indicate each department or service function. (See Instruction 01-3,
General Structure of Accounting System: Uniform System of Accounts)
</TABLE>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1994
SCHEDULE XVII
-------------
KEYS FOR SERVICE FUNCTIONS
--------------------------
KEYS SERVICE FUNCTION
- ---- ----------------
The individual unit for which NAESCO provides service is listed separately
on Page 24.
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1994
DEPARTMENTAL ANALYSIS OF SALARIES
NAME OF DEPARTMENT DEPARTMENTAL SALARY EXPENSE
- ------------------ INCLUDED IN AMOUNTS BILLED TO NUMBER OF
---------------------------------------- PERSONNEL
Indicate each department TOTAL PARENT OTHER NON END
or service function. AMOUNT COMPANY ASSOCIATES ASSOCIATES OF YEAR
- -------------------------- ---------------------------------------- ---------
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C>
Seabrook Station $ 65,420 $ 0 $ 26,173 $ 39,247 908
----------------------------------------- ---------
$ 65,420 $ 0 $ 26,173 $ 39,247 908
========================================= =========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1994
OUTSIDE SERVICES EMPLOYED
INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. I
aggregate amounts paid to any one payee and included within one s
is less than $25,000, only the aggregate number and amount of all
such payments included within the subaccount need be shown. Provi
subtotal for each type of service.
- -------------------------------------------------------------------------------
RELATIONSHIP
"A"-ASSOCIATE
"NA"-NON
FROM WHOM PURCHASED ASSOCIATE AMOUNT
- -------------------------------------------------------------------------------
(Thousands
of Dollars)
<S> <S> <C>
LEGAL SERVICES
Cummings & Lockwood NA $ 31
Joyce & Joyce NA 25
Ropes & Gray NA 44
Sheehan, Phinney, Bass & Greene NA 27
Miscellaneous (4 payees) NA 20
------------
TOTAL LEGAL SERVICES $ 147
------------
SECURITY SERVICES
Business Health Management NA $ 97
Green Mountain Security NA 5,051
Proudfoot Reports NA 59
Raytheon Service Co. NA 56
Unifirst Corporation NA 37
Value Behavioral NA 29
Miscellaneous (10 payees) NA 52
------------
TOTAL SECURITY SERVICES $ 5,381
------------
ENGINEERING SERVICES
Ernst & Young LLP NA $ 33
Hurst Consulting NA 72
Normandeau Associates NA 1,053
Ocean Surveys NA 28
Raytheon Engineers & Constructors NA 5,648
Stone & Webster NA 38
Tenera, L. P. NA 39
TLG Engineering NA 75
Yankee Atomic Electric Company NA 7,019
Miscellaneous (12 payees) NA 66
------------
TOTAL ENGINEERING SERVICES $ 14,071
------------
OTHER SERVICES
AGS Computers, Incorporated NA $ 48
Arthur Anderson Co. NA 65
Carr, Charles NA 96
Center For Occupational Health NA 302
Coopers & Lybrand NA 59
Flanagan, James J. NA 25
Information Handling NA 42
Jassmond, William NA 80
JPA Associates NA 94
Kelly Services NA 93
Mercer, William NA 30
Murphy, S&H NA 55
Northeast Utilities Service Company A 2,386
Price Waterhouse NA 53
Public Service Company of New Hampshire A 441
Republic Management NA 41
Resource Management NA 97
Senn-Delaney NA 25
Smithkline Beecham NA 36
TAD Technical Service NA 77
Western Temporary Services NA 38
The Winn Company NA 61
Miscellaneous (21 payees) NA 144
------------
TOTAL OTHER SERVICES $ 4,388
------------
GRAND TOTAL OUTSIDE SERVICES EMPLOYED $ 23,987
============
</TABLE>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
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.
- -------------------------------------------------------------------------
DESCRIPTION AMOUNT
- -------------------------------------------------------------------------
(Thousands
of Dollars)
Pension Plan $ 2,090
Incentive Goals Plan 740
Group Life, Long-term Disability, Hospital
and Medical Insurance Expenses 4,028
FAS 106 VEBA Funding 1,063
Employee Stock Option Plan 1,246
Employee Assistance Program 69
Educational Activities 160
Other Employee Benefits Expenses 37
---------
TOTAL $ 9,433
=========
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1994
GENERAL ADVERTISING EXPENSES
ACCOUNT 930.1
INSTRUCTIONS: Provide a listing of the amount included in Account 930.1,
"General Advertising Expenses," classifying the items
according to the nature of the advertising and as
defined in the account definition. If a particular class
includes an amount in excess of $3,000 applicable to a
single payee, show separately the name of the payee and
the aggregate amount applicable thereto.
- ------------------------------------------------------------------------
DESCRIPTION NAME OF PAYEE AMOUNT
- ------------------------------------------------------------------------
(Thousands
of Dollars)
Advertising Associated Press $ 30
Various 24
Science & Nature Center Culver Co. 5
Teletek, Inc. 7
Various 286
---------
TOTAL $ 352
=========
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1994
MISCELLANEOUS GENERAL EXPENSES
ACCOUNT 930.2
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.
- --------------------------------------------------------------------------
DESCRIPTION AMOUNT
- --------------------------------------------------------------------------
(Thousands
of Dollars)
Industry association dues $ 908
-----------
TOTAL $ 908
===========
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1994
RENTS
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.
- ---------------------------------------------------------------------------
TYPE OF PROPERTY AMOUNT
- ---------------------------------------------------------------------------
(Thousands
of Dollars)
Computers/Data processing equipment $ 909
Communications equipment 689
Vehicles 125
Buildings 13
Equipment and other 455
-----------
TOTAL $ 2,191
===========
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
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.
- -------------------------------------------------------------------------
KIND OF TAX AMOUNT
(Thousands
of Dollars)
(1) Other Than U.S. Government Taxes:
State Unemployment Tax $ 194
------------
Sub-Total $ 194
------------
(2) U.S. Government Taxes:
Federal Unemployment Tax $ 50
Federal Insurance Contribution Act 3,684
------------
Sub-Total $ 3,734
------------
TOTAL $ 3,928
============
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
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.
- ----------------------------------------------------------------------------------
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
- ----------------------------------------------------------------------------------
(Thousands
of Dollars)
<S> <S> <C>
New Hampshire Seacoast United Way Charitable Contributions $ 66
University of Lowell Charitable Contributions 5
Miscellaneous (146 items) Charitable Contributions 28
----------
TOTAL $ 99
==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
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.
- ---------------------------------------------------------------------------
DESCRIPTION NAME OF PAYEE AMOUNT
- ---------------------------------------------------------------------------
(Thousands
of Dollars)
<C> <C> <C>
Penalties / Fines Internal Revenue Service $ 14
Various - 2 payees 3
Local business events Various - 18 payees 13
Political activities Flanagan, James J. 25
Joyce & Joyce 6
Murphy, S&H 59
USCEA 6
Various - 4 payees 6
-----------
TOTAL $ 132
===========
</TABLE>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
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
financial statements 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 19 through 19F.
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
ORGANIZATION CHART (AS OF DECEMBER 31, 1994)
Senior Vice President and Chief Nuclear Officer
- Executive Director, Nuclear Production
- Executive Director, Support Services
- Director, Administrative Services
- Director, Licensing Services
- Director, North Atlantic Communications
- Director, Nuclear Engineering
- Director, Quality Programs
- Assistant Controller, Nuclear Operations
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
----------------------------------------------------------
For the Year Ended December 31, 1994
------------------------------------
Methods of Allocation
---------------------
All costs are specific to Seabrook Station and are direct charged.
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
For the Year Ended December 31, 1994
Expenses of Seabrook Station are funded in advance therefore there are
no charges for use of capital.
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
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.
NORTH ATLANTIC ENERGY SERVICE CORPORATION
-----------------------------------------
(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 26, 1995
--------------------
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