Form U -13 - 60
Mutual and Subsidiary Service Companies
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1995 and Ending December 31, 1995
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 J. Roman, 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
- ----------------------------------------------------------------------------------------
1995 1994
(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) 37 0
------------ ------------
Total Investments $ 37 $ 0
------------ ------------
CURRENT AND ACCRUED ASSETS
--------------------------
131 Cash $ 740 $ 551
134 Special deposits 0 0
135 Working funds 21 18
136 Temporary cash investments (Schedule IV) 11 11
141 Notes receivable 0 0
143 Accounts receivable 25,430 5,118
144 Accumulated provision of uncollectible accounts 0 0
146 Accounts receivable from associate companies (Schedule V) 147 3,359
152 Fuel stock expenses undistributed (Schedule VI) 0 0
154 Materials and supplies 0 0
163 Stores expense undistributed (Schedule VII) 0 (13)
165 Prepayments 2,980 3,477
174 Miscellaneous current and accrued assets (Schedule VIII) 0 0
------------ ------------
Total Current and Accrued Assets $ 29,329 $ 12,521
------------ ------------
DEFERRED DEBITS
---------------
181 Unamortized Debt Expense $ 0 $ 0
184 Clearing accounts 0 199
186 Miscellaneous deferred debits (Schedule IX) 19,292 21,396
188 Research, development, or demonstration
expenditures (Schedule X) 0 0
190 Accumulated deferred income taxes 0 0
------------ ------------
Total Deferred Debits $ 19,292 $ 21,595
------------ ------------
TOTAL ASSETS AND OTHER DEBITS $ 48,658 $ 34,116
============ ============
</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
- ----------------------------------------------------------------------------------------
1995 1994
(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) 1 0
------------ ------------
Total Proprietary Capital $ 11 $ 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 14,192 7,823
233 Notes payable to associate companies (Schedule XIII) 0 0
234 Accounts payable to associate companies (Schedule XIII) 2,623 1,483
236 Taxes accrued 662 259
237 Interest accrued 0 0
238 Dividends declared 0 0
241 Tax collections payable 53 2
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 27,438 19,161
------------ ------------
Total Current and Accrued Liabilities $ 44,968 $ 28,728
------------ ------------
DEFERRED CREDITS
----------------
253 Other deferred credits $ 3,679 $ 5,378
255 Accumulated deferred investment tax credits 0 0
------------ ------------
Total Deferred Credits $ 3,679 $ 5,378
------------ ------------
282 ACCUMULATED DEFERRED INCOME TAXES $ 0 $ 0
------------ ------------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $ 48,658 $ 34,116
============ ============
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
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> <C>
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
- -----------------------------------------------------------------------------
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY 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>
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, 1995
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
Fleet Bank - Rabbi Trust Fund 0 37
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
Fidelity Institute Tax Exempt Cash Portfolio 11 11
----------- -----------
TOTAL $ 11 $ 48
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
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 $ 7 $ 109
The Connecticut Light and Power Company 332 0
Northeast Nuclear Energy Company 74 16
North Atlantic Energy Corporation 2,945 8
Public Service Company of New Hampshire 1 14
----------- -----------
TOTAL $ 3,359 $ 147
=========== ===========
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
NONE
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
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)
<S> <C>
ACCOUNT 152 - FUEL STOCK EXPENSES NONE
UNDISTRIBUTED
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
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 $ (6) $ (7) $ (13)
Amount incurred during the year 955 171 1,126
The above stores expenses are billed back to each
of the companies listed below:
Associate Companies:
The Connecticut Light and Power Company (39) (6) (45)
North Atlantic Energy Corporation (341) (59) (400)
Non-Associate Companies (569) (99) (668)
---------- ---------- ----------
TOTAL $ 0 $ 0 $ 0
========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
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)
<S> <C>
ACCOUNT 174 - MISCELLANEOUS CURRENT NONE
AND ACCRUED ASSETS
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
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 $ 14,273 $ 15,161
Accrued construction period Worker's Compensation claims 2,022 2,022
Unbilled services and backcharges related to:
Decommissioning Master Trust 52 0
N.H. P.U.C. work 15 0
Loaned employee 18 0
Programming work 32 0
Outage work 20 0
Miscellaneous (6 items) 7 0
Westinghouse Reactor Coolant Pump Settlement 0 1,434
North Atlantic Energy Service Corporation Organization Cost 94 56
Accounting Treatment Change for Payroll 418 388
Required bank deposit 3 3
Preliminary Engineering for:
Equipment hatch barrier 36 36
Telephone switch replacement 16 16
Secondary control system modifications 17 17
Security perimeter 28 0
Condensate polishing system 4,259 0
Spent Fuel Pool Upgrades 83 86
Hotwell Level Control 0 58
Miscellaneous (1 item 1994, 4 items 1995) 3 15
---------- -----------
TOTAL $ 21,396 $ 19,292
========== ===========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
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)
<S> <C>
ACCOUNT 188 - RESEARCH, DEVELOPMENT OR NONE
DEMONSTRATION EXPENDITURES
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
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
$ 0 $ 1 $ 0 $ 1
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
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 ADDITIONS DEDUCTIONS(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, 1995
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 $ 1,186 $ 1,773
Northeast Nuclear Electric Company 0 174
Public Service Company of New Hampshire 297 675
Western Massachusetts Electric Company 0 1
----------- -----------
TOTAL $ 1,483 $ 2,623
=========== ===========
- ----------------------------------------------------------------------------------------
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES
Accrued payroll and other employee payables $ 2,951 $ 7,455
Accrued Pension Cost 10,793 13,390
On-hand operations funding from associate companies:
North Atlantic Energy Corporation 1,949 2,372
The Connecticut Light & Power Company 220 268
On-hand operations funding from non-associate companies 3,248 3,953
----------- -----------
TOTAL $ 19,161 $ 27,438
=========== ===========
</TABLE>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
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), Northeast Nuclear Energy Company (NNECO), Western
Massachusetts Electric Company (WMECO), 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, 1995 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 $4,389,000
and $2,761,000 in 1995 and 1994, 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 $409,000 and $395,000 in 1995 and 1994,
respectively. NNECO acts as agent for CL&P, PSNH, and WMECO in operating the
Millstone Point generating facilities.
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 $5,664,000 and $8,433,000 in 1995 and 1994, 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 / PRESENTATION
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.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent liabilities at the end of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
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 1995 and 1994, part of which was capitalized and billed as utility
plant, approximated $2,596,000 and $2,148,000 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,
1995 1994
Service cost $ 3,597 $ 2,858
Interest cost 2,759 2,530
Return on plan assets (8,703) 60
Net amortization 4,943 (3,300)
-------- --------
Net pension cost $ 2,596 $ 2,148
======== ========
For calculating pension cost, the following actuarial assumptions were used:
For the Years Ended
December 31,
1995 1994
Discount rate 8.25% 7.75%
Expected long-term rate of return 8.50 8.50
Compensation/progression rate 5.00 4.75
The following table represents the plan's funded status for the Company at
December 31 (in thousands):
1995 1994
Accumulated benefit obligation,
including vested benefits at
December 31, 1995 and 1994 of
$20,213,000 and $15,743,000,
respectively $ 26,084 $ 20,938
========== =========
Projected benefit obligation (PBO) $ 45,334 $ 35,437
Less: Market value of plan assets 42,904 34,306
---------- ---------
PBO in excess of market value (2,403) (1,131)
Unrecognized transition amount 882 945
Unrecognized prior service costs 3,184 3,367
Unrecognized net gain (15,026) (13,974)
---------- ---------
Accrued pension liability $ (13,390) $ (10,793)
========== =========
The following actuarial assumptions were used in calculating the Company plan's
year end funded status:
1995 1994
Discount Rate 7.50% 8.25%
Compensation/progression rate 4.75 5.00
The Company provides certain health care benefits, primarily medical and dental,
and life insurance benefits through a benefit plan to retired employees
(referred to as Statement of Financial Accounting Standards 106 (SFAS 106)
benefits). These benefits are available for employees leaving the Company who
are otherwise eligible to retire and have met specified service requirements.
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 $1,144,000 in
1995 and $1,176,000 in 1994.
The accumulated postretirement benefit obligation (APBO) represents the
Company's prior service obligation upon the adoption of SFAS 106 on January 1,
1993. 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.
The Company funds its postretirement benefit costs through investments in
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):
1995 1994
Accumulated postretirement benefit obligation of:
Retirees $ 2,360 $ 2,010
Active employees not eligible to retire 5,449 4,024
--------- ---------
Total accumulated postretirement benefit
obligation 7,809 6,034
Less: Market value of plan assets 3,690 2,076
Accumulated postretirement benefit --------- ---------
obligation in excess of plan assets (4,119) (3,958)
Unrecognized transition amount 2,682 2,840
Unrecognized net gain 1,437 1,118
--------- ---------
Postretirement benefit liability $ 0 $ 0
========= =========
The following actuarial assumptions were used in calculating the plan's year end
funded status:
1995 1994
Discount Rate 7.50% 8.00%
Health Care Cost Trend Rate (a) 8.40 10.20
(a) The per capita cost of covered health care benefits was assumed to
decrease to 5.4 percent by 2001.
The components of health care and life insurance costs for the years ended
December 31 (in thousands) are:
1995 1994
Service cost $ 605 $ 604
Interest cost 545 485
Return on plan assets (566) 25
Net amortization 560 62
------- -------
Net health care and life insurance cost $ 1,144 $ 1,176
======= =======
The following actuarial assumptions were used in calculating SFAS 106 benefit
costs:
1995 1994
Discount Rate 8.00% 8.00%
Long Term Rate of Return - Health Assets,
net of tax 5.00 5.00
Long Term Rate of Return - Life Assets 8.50 8.50
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, 1995 by $360,000 and the aggregate of the
service and interest cost components of net periodic postretirement benefit cost
for the year then ended by $58,000. 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. Operating lease costs charged to expense approximated $2,049,000 and
$2,191,000 in 1995 and 1994, 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
obligations.
5. NUCLEAR PERFORMANCE
On January 31, 1996 the Nuclear Regulatory Commission (NRC) announced that the
three Millstone Point nuclear power plants, operated by NNECO, had been placed
on its `watch list'' because of long-standing performance concerns. The NRC
cited a number of operational problems that have arisen since 1990 at the
Millstone Point plants. The NRC recognized that there are significant current
variations in the performance of the three Millstone Point units. The
performance concerns cited by the NRC, combined with NU's failure to maintain
previous performance improvements, have resulted in the NRC requiring close
monitoring of units operated by NNECO.
On March 7, 1996 NUSCO received a letter from the NRC concerning the Connecticut
Yankee Atomic Power Company (CY, a nuclear power plant managed by NU) and the
Millstone Point 3 unit. The NRC is requesting reports by April 6, 1996, on
actions taken to date and NU's plans and schedule to ensure that future
operation of CY and the Millstone Point 3 unit will conform to NRC regulations,
the units' respective operating licenses, and the Updated Final Safety Analysis
Reports (collectively, the "Applicable Requirements").
The Millstone 1 unit's outage had been extended to the second quarter of 1996
to complete repairs and to respond to the NRC's request for information. On
February 21, 1996, the Millstone 2 unit was shut down as a result of an
engineering evaluation. It is anticipated that the necessary work to respond
to the NRC's letter for both Millstone 1 and 2 will not be completed until
August of 1996. Management cannot predict at this time how long the NRC's
review will take or what additional actions, if any, the NRC will take with
respect to the restart of Millstone 1 and 2, following the company's response.
On March 30, 1996, the Millstone 3 unit was shut down by the company following
an engineering evaluation. On April 4, 1996, the NRC issued a letter indicating
that it had identified programmatic issues and design deficiencies at Millstone
3 unit that were similar in nature to those previously identified at the
Millstone 1 and 2 units, and, was seeking information regarding the plans and
schedule for ensuring that the future operation of the unit would be conducted
in accordance with the Applicable Requirements. As the Millstone 3 unit was
constructed under more stringent licensing requirements, it is anticipated that
the preparation of the response to the NRC's request for information for
Millstone 3 should not be as difficult or time consuming as that for the earlier
vintage Millstone 1 and 2 units. Management, cannot, at this time, predict the
duration of the process for preparing the necessary response, the NRC's reaction
to the response, or the expected date that Millstone 3 will return to service.
Any costs associated with the NRC's actions will be borne by the plant's
owners. These costs cannot accurately be estimated at this time.
Management does not know at this time whether the NRC will request similar
information and assurances regarding NAESCO's management of the Project.
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
FOR THE YEAR ENDED DECEMBER 31, 1995
SCHEDULE XV
COMPARATIVE INCOME STATEMENT
- -----------------------------------------------------------------------------
ACCT DESCRIPTION 1995 1994
- -----------------------------------------------------------------------------
(Thousands of Dollars)
INCOME
------
457 Services Rendered to Associate Companies $ 58,755 $ 62,123
458 Services Rendered to Nonassociate Companies 87,980 93,179
421 Miscellaneous Income or (Loss) 3 36
---------- ----------
Total Income $ 146,738 $ 155,338
---------- ----------
EXPENSE
-------
Nuclear Power Expenses
517 Operation Supervision and Engineering $ 20,262 $ 20,967
518 Nuclear Fuel Expense 7,904 5,827
519 Coolants and Water 671 711
520 Steam Expenses 11,367 15,495
523 Electric Expenses 160 290
524 Miscellaneous Nuclear Power Expenses 28,634 30,801
528 Maintenance Supervision and Engineering 11,096 9,297
529 Maintenance of Structures 3,648 4,350
530 Maintenance of Reactor Plant Equipment 11,231 15,166
531 Maintenance of Electric Plant 5,421 8,108
532 Maintenance of Miscellaneous Nuclear Plant 7,564 10,995
Transmission Expenses
570 Maintenance of Station Equipment 91 7
Administrative and General Expenses
920 Salaries and Wages 4,654 4,412
921 Office Supplies and Expenses 2,375 2,479
922 Administrative Expense Transferred-Credit (278) (86)
923 Outside Services Employed 4,208 2,664
924 Property Insurance 4,250 4,677
925 Injuries and Damages 629 238
926 Employee Pensions and Benefits 13,663 9,433
928 Regulatory Commission Expense 3,595 4,088
930.1 General Advertising Expenses 269 352
930.2 Miscellaneous General Expenses 888 908
935 Maintenance of General Plant 0 0
All Other Expenses
408 Taxes Other Than Income Taxes 4,298 3,928
426.1 Donations 84 99
426.5 Other Deductions 53 132
---------- ----------
Total Expense $ 146,737 $ 155,338
---------- ----------
Net Income or (Loss) $ 1 $ 0
========== ==========
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
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
The Connecticut Light and Power $ 5,957 $ $ $ 5,957
Company
North Atlantic Energy Corporation 52,798 52,798
-------- --------- ------------- --------
TOTAL $58,755 $ 0 $ 0 $58,755
======== ========= ============= ========
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
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 5,169 $ - $ - $ 5,169 $ - $ 5,169
Great Bay Power Corporation 17,802 17,802 17,802
Hudson Light & Power Dept. 114 114 114
Massachusetts Municipal Wholesale
Electric Company 17,011 17,011 17,011
Montaup Electric Company 4,255 4,255 4,255
New England Power Company 14,612 14,612 14,612
New Hampshire Electric Coop. 3,190 3,190 3,190
Taunton Municipal Lighting Plant 147 147 147
United Illuminating Company 25,680 25,680 25,680
------- -------- ------------ -------- ---------- --------
$87,980 $ - $ - $ 87,980 $ - $87,980
======= ======== ============ ======== ========== ========
</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, 1995
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
- -------------------------------------------------------------------------
ASSOCIATE COMPANY CHARG
-----------------------
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 8,113 - 8,113
518 Nuclear Fuel Disposal 3,165 3,165
519 Coolants and Water 269 269
520 Steam Expenses 4,551 4,551
523 Electric Expenses 64 64
524 Miscellaneous Nuclear Power Expenses 11,466 11,466
528 Maintenance Supervision and Engineering 4,443 4,443
529 Maintenance of Structures 1,461 1,461
530 Maintenance of Reactor Plant Equipment 4,497 4,497
531 Maintenance of Electric Plant 2,171 2,171
532 Maintenance of Miscellaneous Nuclear Plant 3,029 3,029
Transmission Expenses
570 Maintenance of Station Equipment 36 36
Administrative and General Expenses
920 Salaries and Wages 1,863 1,863
921 Office Supplies and Expenses 951 951
922 Administrative Expense Transferred-Credit (111) (111)
923 Outside Services Employed 1,685 1,685
924 Property Insurance 1,702 1,702
925 Injuries and Damages 252 252
926 Employee Pensions and Benefits 5,471 5,471
928 Regulatory Commission Expense 1,439 1,439
930.1 General Advertising Expenses 108 108
930.2 Miscellaneous General Expenses 355 355
935 Maintenance of General Plant 0 0
All Other Expenses
408 Taxes Other Than Income Taxes 1,721 1,721
426.1 Donations 34 34
426.5 Other Deductions 21 21
----------------------
TOTAL EXPENSES = 58,756 - 58,756
421 Miscellaneous Non-Operating Income (1) (1)
----------------------
TOTAL COST OF SERVICE = 58,755 - 58,755
======================
</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, 1995
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 12,149 - 12,149
518 Nuclear Fuel Disposal 4,739 4,739
519 Coolants and Water 402 402
520 Steam Expenses 6,816 6,816
523 Electric Expenses 96 96
524 Miscellaneous Nuclear Power Expenses 17,168 17,168
528 Maintenance Supervision and Engineering 6,653 6,653
529 Maintenance of Structures 2,187 2,187
530 Maintenance of Reactor Plant Equipment 6,734 6,734
531 Maintenance of Electric Plant 3,250 3,250
532 Maintenance of Miscellaneous Nuclear Plant 4,535 4,535
Transmission Expenses
570 Maintenance of Station Equipment 55 55
Administrative and General Expenses
920 Salaries and Wages 2,791 2,791
921 Office Supplies and Expenses 1,424 1,424
922 Administrative Expense Transferred-Credit (167) (167)
923 Outside Services Employed 2,523 2,523
924 Property Insurance 2,548 2,548
925 Injuries and Damages 377 377
926 Employee Pensions and Benefits 8,192 8,192
928 Regulatory Commission Expense 2,156 2,156
930.1 General Advertising Expenses 161 161
930.2 Miscellaneous General Expenses 533 533
935 Maintenance of General Plant 0 0
All Other Expenses
408 Taxes Other Than Income Taxes 2,577 2,577
426.1 Donations 50 50
426.5 Other Deductions 32 32
----------------------------
TOTAL EXPENSES = 87,981 - 87,981
421 Miscellaneous Non-Operating Income (1) (1)
----------------------------
TOTAL COST OF SERVICE = 87,980 - 87,980
============================
</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, 1995
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 20,262 - 20,262
518 Nuclear Fuel Disposal 7,904 7,904
519 Coolants and Water 671 671
520 Steam Expenses 11,367 11,367
523 Electric Expenses 160 160
524 Miscellaneous Nuclear Power Expenses 28,634 28,634
528 Maintenance Supervision and Engineering 11,096 11,096
529 Maintenance of Structures 3,648 3,648
530 Maintenance of Reactor Plant Equipment 11,231 11,231
531 Maintenance of Electric Plant 5,421 5,421
532 Maintenance of Miscellaneous Nuclear Plant 7,564 7,564
Transmission Expenses
570 Maintenance of Station Equipment 91 91
Administrative and General Expenses
920 Salaries and Wages 4,654 4,654
921 Office Supplies and Expenses 2,375 2,375
922 Administrative Expense Transferred-Credit (278) (278)
923 Outside Services Employed 4,208 4,208
924 Property Insurance 4,250 4,250
925 Injuries and Damages 629 629
926 Employee Pensions and Benefits 13,663 13,663
928 Regulatory Commission Expense 3,595 3,595
930.1 General Advertising Expenses 269 269
930.2 Miscellaneous General Expenses 888 888
935 Maintenance of General Plant 0 0
All Other Expenses
408 Taxes Other Than Income Taxes 4,298 4,298
426.1 Donations 84 84
426.5 Other Deductions 53 53
-------------------------
TOTAL EXPENSES = 146,737 - 146,737
421 Miscellaneous Non-Operating Income (2) (2)
-------------------------
TOTAL COST OF SERVICE = 146,735 - 146,735
=========================
</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, 1995
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 $ 20,262 $ $ 20,262
518 Nuclear Fuel Disposal 7,904 7,904
519 Coolants and Water 671 671
520 Steam Expenses 11,367 11,367
523 Electric Expenses 160 160
524 Miscellaneous Nuclear Power Expenses 28,634 28,634
528 Maintenance Supervision and Engineering 11,096 11,096
529 Maintenance of Structures 3,648 3,648
530 Maintenance of Reactor Plant Equipment 11,231 11,231
531 Maintenance of Electric Plant 5,421 5,421
532 Maintenance of Miscellaneous Nuclear Plant 7,564 7,564
Transmission Expenses
570 Maintenance of Station Equipment 91 91
Administrative and General Expenses
920 Salaries and Wages 4,654 4,654
921 Office Supplies and Expenses 2,375 2,375
922 Administrative Expense Transferred-Credit (278) (278)
923 Outside Services Employed 4,208 4,208
924 Property Insurance 4,250 4,250
925 Injuries and Damages 629 629
926 Employee Pensions and Benefits 13,663 13,663
928 Regulatory Commission Expense 3,595 3,595
930.1 General Advertising Expenses 269 269
930.2 Miscellaneous General Expenses 888 888
935 Maintenance of General Plant 0 0
All Other Expenses
408 Taxes Other Than Income Taxes 4,298 4,298
426.1 Donations 84 84
426.5 Other Deductions 53 53
---------- --------- ----------
TOTAL EXPENSES $ 146,737 $ 0 $ 146,737
========== ========= ==========
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, 1995
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, 1995
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 $ 57,530 $ $ 23,036 $ 34,494 871
----------------------------------------- ---------
$ 57,530 $ 0 $ 23,036 $ 34,494 871
========================================= =========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
OUTSIDE SERVICES EMPLOYED
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.
- ----------------------------------------------------------------------------------------
RELATIONSHIP
"A"-ASSOCIATE
"NA"-NON
FROM WHOM PURCHASED ASSOCIATE AMOUNT
- ----------------------------------------------------------------------------------------
(Thousands
of Dollars)
<S> <S> <C>
LEGAL SERVICES
Cummings & Lockwood NA $ 51
Joyce & Joyce NA 28
Sheehan, Phinney, Bass & Greene NA 50
Miscellaneous (9 payees) NA 73
----------
TOTAL LEGAL SERVICES $ 202
----------
SECURITY SERVICES
Business Health Management NA $ 37
Green Mountain Security NA 3,817
Proudfoot Reports NA 37
Smithkline Beecham NA 39
Miscellaneous (20 payees) NA 66
----------
TOTAL SECURITY SERVICES $ 3,996
----------
ENGINEERING SERVICES
Ernst & Young LLP NA $ 48
Hartford Steam Boiler NA 50
New Hampshire NA 25
Normandeau Associates NA 1,212
Northeast Utilities Service Company A 497
Ocean Surveys NA 49
Raytheon Engineers & Constructors NA 661
TLG Engineering NA 33
University of Massachusetts NA 71
Westinghouse Electric NA 103
Yankee Atomic Electric Company NA 4,117
Miscellaneous (26 payees) NA 201
----------
TOTAL ENGINEERING SERVICES $ 7,067
----------
OTHER SERVICES
Arthur Andersen & Co. NA $ 74
Business Health Management NA 122
Carr, Charles NA 70
Center For Occupational Health NA 204
The Eusey Press NA 48
Indus Group, Inc. NA 277
Jassmond, William NA 79
JPA Associates NA 44
Kelly Services NA 86
Management Associates NA 28
Mass Health Research NA 75
Mercer, William NA 33
Murphy, S&H NA 53
New England Power Service NA 48
Northeast Utilities Service Company A 2,866
Public Service Company of New Hampshire A 99
Raytheon Engineers & Constructors NA 541
Republic Management NA 73
Resource Management NA 67
Senn-Delaney NA 53
TAC Temps NA 26
Western Temporary Services NA 29
The Winn Company NA 49
Yankee Atomic Electric Co. NA 66
Miscellaneous (43 payees) NA 213
----------
TOTAL OTHER SERVICES $ 5,323
----------
GRAND TOTAL OUTSIDE SERVICES EMPLOYED $ 16,588
==========
</TABLE>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
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 $ 2,551
Incentive Goals Plan 4,385
Group Life, Long-term Disability, Hospital
and Medical Insurance Expenses 4,035
FAS 106 VEBA Funding 1,111
Employee Stock Option Plan 1,355
Employee Assistance Program 63
Educational Activities 112
Other Postretirement Benefits 51
---------
TOTAL $ 13,663
=========
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
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 $ 18
Science & Nature Center Barker Specialty 4
Computer Hut 4
Various 243
---------
TOTAL $ 269
=========
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
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 $ 888
-----------
TOTAL $ 888
===========
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
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 $ 581
Communications equipment 721
Vehicles 117
Buildings 12
Equipment and other 618
-----------
TOTAL $ 2,049
===========
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
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 $ 211
------------
Sub-Total $ 211
------------
(2) U.S. Government Taxes:
Federal Unemployment Tax $ 55
Federal Insurance Contribution Act 4,032
------------
Sub-Total $ 4,087
------------
TOTAL $ 4,298
============
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
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 $ 22
Seacoast Repertory Theater Charitable Contributions 5
Miscellaneous (120 items) Charitable Contributions 57
----------
TOTAL $ 84
==========
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
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)
<S> <S> <C>
Local business events Coalition of Northeastern Governors $ 5
Various - 2 payees 1
Political activities Flanagan, James J. 15
Murphy, S&H 49
Luka's Greenhouse Restaurant 6
Various - 11 payees 11
Miscellaneous Adjustments from prior years (34)
-----------
TOTAL $ 53
===========
</TABLE>
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
For the Year Ended December 31, 1995
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, 1995)
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
ANNUAL REPORT OF NORTH ATLANTIC ENERGY SERVICE CORPORATION
----------------------------------------------------------
For the Year Ended December 31, 1995
------------------------------------
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, 1995
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 J. Roman
-----------------------------------------
(Signature of Signing Officer)
John J. Roman - Vice President and Controller
---------------------------------------------
(Printed Name and Title of Signing Officer)
Date: April 26, 1996
--------------------
<TABLE> <S> <C>
<ARTICLE>OPUR2
<CIK>0000906631
<NAME>NORTH ATLANTIC ENERGY SERVICE CORPORTATION
<MULTIPLIER>1,000
<S> <C> <C>
<PERIOD-TYPE> YEAR YEAR
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1994
<PERIOD-END> DEC-31-1995 DEC-31-1994
<BOOK-VALUE> PER-BOOK PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 0 0
<TOTAL-INVESTMENTS> 37 0
<TOTAL-CURRENT-ASSETS> 29,329 12,521
<TOTAL-DEFERRED-DEBITS> 19,292 21,595
<OTHER-ASSETS-AND-DEBITS> 0 0
<TOTAL-ASSETS-AND-DEBITS> 48,658 34,116
<TOTAL-PROPRIETARY-CAPITAL> 11 10
<TOTAL-LONG-TERM-DEBT> 0 0
<NOTES-PAYABLE> 0 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 0 0
<OTHER-CURR-AND-ACCRUED-LIAB> 44,968 28,728
<TOTAL-DEFERRED-CREDITS> 3,679 5,378
<DEFERRED-INCOME-TAX> 0 0
<TOT-LIABIL-AND-PROPRIET-CAP> 48,658 34,116
<SERVICES-ASSOCIATE-COMPANIES> 58,755 62,123
<SERVICES-NON-ASSOCIATE-COMP> 87,980 93,179
<MISC-INCOME-OR-LOSS> 3 36
<TOTAL-INCOME> 146,738 155,338
<SALARIES-AND-WAGES> 57,530 65,420
<EMPLOYEE-PENSION-AND-BENEFIT> 13,663 9,433
<OTHER-EXPENSES> 75,544 80,485
<TOTAL-EXPENSES> 146,737 155,338
<NET-INCOME> 1 0
<TOTAL-EXPENSES-DIRECT-COST> 146,737 155,338
<TOTAL-EXPENSES-INDIRECT-COST> 0 0
<TOT-EXP-DIRECT-AND-INDIRECT> 146,737 155,338
<PERSONNEL-END-OF-YEAR> 871 908
</TABLE>
