SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
In the matter of )
)
)
EUA ENERGY INVESTMENT CORPORATION ) Certificate of
Lowell, Massachusetts ) Notification
) Pursuant to
) Rule 24
(70-8837) )
)
(Public Utility Holding Company Act of 1935) )
Enclosed herewith for filing by EUA Energy Investment Corporation, a
wholly-owned subsidiary of Eastern Utilities Associates in
accordance with the Order of the Securities and Exchange Commission
entered in the above matter on June 26, 1996 (Release No. 35-26529)
and pursuant to Rule 24, are the balance sheet, the income statement,
and statement of cash flows for the period ended June 30, 1997 of Separation
Technologies, Inc., reflecting the investments to date therein by EUA Energy
Investment Corporation.
EUA Energy Investment Corporation
By: /s/ Clifford J. Hebert, Jr.
Clifford J. Hebert, Jr.
Treasurer
Dated: August 28, 1997
EUA ENERGY INVESTMENT CORPORATION
INVESTMENT IN SEPARATION TECHNOLOGIES, INC.
SECOND QUARTER 1997
(1) In the first quarter STI completed Phase II at the Brayton Point Power
Project. Brayton Point Station is owned by New England Power and is
located in Somerset, MA. One STI separator has been running at
Brayton Point in a temporary location at the plant since June of 1995.
Phase II effectively doubles the Brayton Point separating capacity.
During the second quarter STI relocated the Phase II separator to its
permanent location. Phase I is expected to be moved to its permanent
location in the third quarter of 1997.
Revenues from Brayton Point operations increased by approximately 50% in
the first half of 1997. However, costs incurred exceeded revenues as a
result of costs incurred in preparation of increased operations and
equipment installation costs.
STI announced in April 1997 a joint venture formed with Roanoke Cement
Company to install equipment to separate unburned carbon from fly-ash at
Carolina Power & Light's Roxboro, N.C. generating station. The joint
venture will market the processed ash to concrete producers in the
Virginia's and the Carolina's. The equipment has been delivered and
installed and commercial operation is anticipated in September 1997.
In June 1997, STI submitted a bid to Jacksonville Electric Authority (JEA)
for the benefication of the ash from its Saint John's River Power Park.
JEA is expected to make its selection decision in the next 60 days.
STI also executed a licensing agreement in Europe with a large mineral
company in Germany for which a testing program is successfully being
completed.
(2) Separation Technologies' Financial Statements through June 30,
1997.
SEPARATION TECHNOLOGIES, INC.
CONDENSED BALANCE SHEET
June 30, 1997
(Unaudited)
(In Thousands of Dollars)
ASSETS
Fixed Assets:
Property and equipment, net $3,904
Less: Accumulated depreciation 1,482
Total fixed Assets 2,422
Current Assets:
Cash and cash equivalents 625
Accounts Receivable, net 737
Inventories 7
Prepaid Expenses and Other 17
Total Current Assets 1,386
Other Assets:
Deposits 41
Acquired Intangibles 725
Patents and acquired Technology 168
Total Other Assets 934
TOTAL ASSETS $4,742
LIABILITIES
Stockholders' Equity
Series A Convertible Preferred $16
Common Stock 37
Deferred Compensation (150)
Additional Paid-in-Capital 13,903
Deficit accumulated during development (12,001)
Total Stockholders' Equity 1,805
Long Term Liabilities:
Notes Payable to EUA Energy 2,000
Total Long Term Liabilities 2,000
Total Capitalization 3,805
Current Liabilities:
Accounts Payable 629
Notes and Leases Payable 62
Accrued Expenses 246
Other 937
Total Current Liabilities 937
TOTAL LIABILITIES AND EQUITY $4,742
SEPARATION TECHNOLOGIES, INC.
CONDENSED INCOME STATEMENT
For the Period Ended June 30, 1997
(Unaudited)
(In Thousands of Dollars)
QUARTER ENDED YTD
Revenues $590 $1,145
Cost of Revenues 338 681
Gross Profit 252 464
Operating Expenses:
Engineering, Research and Development 278 529
Sales and Marketing Expenses 48 92
General and Administrative Expenses 407 835
Total Operating Expenses 733 1,456
Operating Income (Loss) (481) (992)
Interest Charges 50 78
Other Income/(Expense) 125 125
Pre-tax Net Income (Loss) ($406) ($945)
SEPARATION TECHNOLOGIES, INC.
STATEMENT OF CASH FLOWS
For the Year to Date Period Ended June 30, 1997
(Unaudited)
(In Thousands of Dollars)
Operating Activities:
Pre-tax Net Income (Loss) ($945)
Depreciation & Amortization 448
Change in Current Assets and Liabilities:
Accounts Receivable (315)
Accounts Payable 48
Other Current Assets and Liabilities 48
Net Operating Activities (716)
Investing Activities:
Capital Expenditures (929)
Net Investing Activities (929)
Financing Activities:
Increase in Notes and Leases 1034
Net Financing Activities 1034
Net increase in cash and cash equivalents (611)
Cash and cash equivalents at December 31, 1996 1,236
Cash and cash equivalents at June 30, 1997 625
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