ML20036A395
| ML20036A395 | |
| Person / Time | |
|---|---|
| Site: | Millstone, Seabrook, Haddam Neck File:Connecticut Yankee Atomic Power Co icon.png |
| Issue date: | 12/31/1992 |
| From: | Ellis W, Fox B NORTH ATLANTIC ENERGY SERVICE CORP. (NAESCO) |
| To: | |
| Shared Package | |
| ML20035G106 | List: |
| References | |
| NUDOCS 9305110168 | |
| Download: ML20036A395 (27) | |
Text
1 North Atlantic Energy Corporation NAEC a subsidiary of Northeast Utilitics 1
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1 1992 nnuailemrt g
pr1 = = =1e PDR
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i Directors Robert E. Busch Bernard M. Fox
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s Execuuve Vice President and Chief President and Chief Operating Officer Financial Officer John B. Keane i
l John E Cagnetta Vice President and General Counsel-Corporate Senior Vice President Frank R. Locke William B. Ellis Senior Vice President and Chief i
Chairman and Chief Executive Officer Admmistrative Officer-New Hampshire Ted C. Feigenbaum John E Opeka Senior Vice President Executive Vice President O_[ficers William B. Ellis Tod O. Dixon Joseph E Deegan l
Chairman and Chief Vice President Assistant Controller Executive Officer Cheryl W. Grist Patricia R. Mclaughlin Bernard M. Fox Vice President Assistant Controller President and Chief Operating Officer Barry liberman JohnJ. Roman Vice President Assistant Controller Robert E. Busch Executive Vice President and John B. Keane2 Pierre O. Caron Chief Financial Officer Vice President and General Secretary a
Counsel-Corporate John E Opeka Theresa H. Allsop Executive Vice President Francis L Kinney Assistant Secretary l
Vice President John E Cagnetta Mark A.Joyse Keith R. Marvin
. Assistant Secretary Senior Vice President Vice President Robert C. Aronson l
Ted C. Feigenbaum Senior Vice President John W. Noyes Assistant Treasurer Vice President and Controller Frank R. l.ocke.
Bruce E Garelick Senior Vice President and Wayne D. Romberg Assistant Treasurer Chief Administrative Officer-Vice President New Hampshire C. Frederick Sears C. Thayer Browne2 d*"'
Vice President and Treasurer Robert E Wax Eric A. DeBarba Vice President. Assistant Vice President Secretary and General Counsel 1.Mr. Browne has resigned as Vsce President and Treasurer e!Iecuve May 1.1993, at which ume he will serve as %cc President-Investment Mansgement.
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2.Mr. Keane has resigned as %cr Presdent and General Counsel-Corporate effecuve May 1.1993, at which ume he will serve as
%cc Preudent and Treasurer.
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February 28,199.1 7
1992 Annual F.eport North Atlantic Energy Corporatiqp Index Contents Page Balance Sheet 2
Statement of income...............
4 Statement of Cash Flows....................................
5 Statement of Common Stockholder's Equity..
6 Noter.0 Financial Statements............
7 Report of Independent Public Accountants.................
19 Management's Discussion and Analysis of Financial Condition and Resutts of Operations.............................
20 Selected Financial Data......................
24 Statistics............................................
24
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Statement of Quarterly Financial Data............................
24 Bondholder information..
25 i
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,m North Atlantic Energy Corporation BAI.ANCE SHEET At December 31, 1992 (Thousands of Dollars)
ASSETS Utility Plant, at original cost:
E lectric..............................-...
S 756,806 Less: Accumutated provision for depreciation.......
36,327 720,479 Construction work in progress.....
4,775 l
Nuclear fuel, net.................
13,339 Total net utility ptant...........
738,593
)
Other Property and investments:
Nuclear decommissioning trust, at cost............
5,037 (h
(
)
Current Assets:
Cash....................................
251 Receivables.................
349 Receivables from affiliated companies..................
22,842 Materials and supplies, at average cost....................
5,362 Prepayments and other......................
10.170 38.974 Deferred Charges:
Unamortized debt expense..............
6,179 Deferred costs - Seabrook (Note 1)......................
22,801 Deferred DOE assessment (Note 1).......................
4,965 Other deferred d ebits.....................................
1,574 35.519-To tal As s e ts........................................................
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818.123 r
NAEC began operations on June 5,1992.
p The accompanying notes are an integral part to these financial statements.
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North Atlantic Energy Corporation t
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BALANCE SHEET At December 31, 1992 (Thousands of Dollars)
CAPITAllZATION AND LIABILITIES Capitalization:
Common stock, $1 par value. Authorized and outstanding 1.000 shares..............................
1 C apital surpius, p aid in.........
160.999 R etained e amin g s...
12.703 Total common stockholder's eouity....
173,703 Long-term debt (Note 4)...
560.000 733.703 Total capitalization.................
Current Uabilities:
Notes payable to affiliated company..................
18,500 760 Accounts payable....................
602 Accounts payable to affiliated companies....
[,
18,288 Accrued interest..
....m 1
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Accrued taxes...........
38.151 Deferred Credits:
Accumulated deferred income taxes...................
8,395 Deferred obligation to sffiliated company (Note 6).........
32,909 Deferred DOE obligation (Note 1)........................
4.965 46.269 F
l Commitments and Contingencies (Note 7) t Total Capitalization and Liabilities..................
5 818.123 i
t NAEC began operations on June 5,1992.
t The accompanying notes are an integral part to these financial statements.
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North Atlantic Energy Corporation m
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STATEMENTOF INCOME For the Period June 5 to December 31 1992 i
(Thousands of Dollars)
O pe ra ti n g F1 eve n u e s...........................................................................
S 78,444
{
Operating Expenses:
Operation -
Fuel..........
1,688 Other.....................................
25.505 Malnienance........................
9,413 Depreciation.................,...
12,905 Federal and state income taxes (Note 5).........
2.583 Taxes other than income taxes..........
10.428 Total operating expenses.....
62.322 O pe ratin g in c om e........................................................................
16.122
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Other income:
1 Allowance for other funds used during construction..............................
44 V
Deferred Seabrook retum - other funds..................................
7,784 Oth er, n e t....................................-...............
156 income taxes - credit............
10,428 t
Other incom e, net..............................
18.412
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income before interest charges...........
34.534.
interest Charges:
Interest on long-term debt....................
36,647 Oth er interest............................................
394 Allowance for borrowed funds used during con stru e tion...........................................................
(194)
Deferred Seabrook retum - borrowed funds, net of incom e tax es........
(15,016)
Interest charges, neL........................
21,831 N et Ine o m e................................................................................ $
12.703 i
r NAEC began operations on June 5,1992.
The accompanying notes are an integral part to these financia! statements.
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North Atlantic Energy Corporation
/m STATEMENT OF CASH FLOWS s
(
)
For the Period June 5 to December 31 1992 (Thousands of Dollars)
Cash Flows From Operations:
N e t i n c om e............................................................
12.703 Adjusted for the folowing:
D e pre ciati o n............................................................
13,009 Deferred income taxes and investment tax credits, net.....
8,505 Deierred retum - Seabrook.....................................
(22,802)
Net change in deferred charges and other no n cash item s.................................................
(2.716)
Change in working capital:
Receivables and accrued utility revenues.................
(20,736)
M aterials and supplies.......................................
(2,288)
Accounts payable...............
1,362 Ac cru ed tax es........
(4,970)
Other working capital (excludes cash).........................
(3.682)
Net cash flows used for operations................................
(21,615)
Cash Flows From Financing Activities:
Com m on shares....................................................
161,000 Long -term debt (Note 1).........
355,000 lm)
Net increase in short-term debt................................
18,500 V
Net cash flows from financing activities.......................
534,500 investment Activities:
Irwestments in plant-Investment in Seabrook assets, net (Note 1)...............
(504265)
Elecric utility plant................................................
(6,3 51)
N o cle ar fu ed........................................................
(511)
Less: Allowance for other funds used during construction............................................
(44)
Net cash flows used for investments in plant..................
(511,083)
Other itwestment activities, net..............................
(1,5 51)
Net cash flows used for investm ents............................
(512.634)
Net increase in Cash for the Period.......................
251 Cash - beginning of period..........................................
Cash - end of pe riod............................................
251 Supplemental Cash Flow Information......................
Cash paid (received) during the period for:
Interest, net of amounts capita!! zed during constructon..................................................
18.166 Incom e tax es..............
0 6,000)
NAEC began operations on Jurse 5,1992.
O The accompanying notes are an integral part to these financial statements.
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North Attntic En::rgy Company STATEMENT OF COMMON STOCKHOLDER'S EOUlTY p(j(
Capital t
Common
- Surplus, Retained Stock Paid in Earnings (a)
Total (Thousands of Dollars)
B alance at June 5,1992.....................
Net income for 1992..
12,073 12.073 issuance of 1,000 shares of common stock, $1 par value....................
1 1
Premium on common stock.............
160,999 160,999 Balance at December 31, 19 9 2...........
S 1
$ 160.999
$ 12.073 S 173,073 k
(a) The Company has dividend restrictions imposed by its long-term debt agreement and is effectively prohibited by the agreement from the distribution of any dividends through May 1993.
NAEC began operations on June 5,1992.
The accompanying notes are an integral part of these financial statements.
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North Atlantic Energy Corporation a
NOTES TO FINANCIAL STATEMENTS 1.
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES General North Atlantic Energy Corporation (NAEC or the Company) is a wholly owned subsidiary of Northeast Utilities (NU). NAEC was incorporated on September 20,1991 for the purpose of acquiring Public Service Company of New Hampshire's (PSNH) ownership interest in the Seabrook nuclear project (Seabrook).
Upon NU's acquisition of PSNH on June 5,1992 (Acquisition Date), PSNH's 35.6 percent share of the Seabrook nuclear power plant (Seabrook 1) and other Seabrook-related assets were transferred to NAEC for approximately $504 million in cash and the assumption of PSNH's obligations under the $205 million, 15.23 percent Notes originally issued by PSNH. The sources of cash were a $161 million equity investment by NU into NAEC, and NAEC's issuance and sale of $355 million of 9.05 percent First Mortgage Bonds, both of which took place on June 5,1992. NAEC also accuired PSNH's 35.6 percent interest in the nuclear fuel for Seabrook 1 and the cancelled Seabrook 2. In addition, it acquired from PSNH ownership of the approximately 719 acres of exclusion area land which surrounds the location of the two Seabrook units.
r'EC will not operate Seabrook 1, which at the Acquisition Date, was being operated by the New Hampshire Yankee Division (NHY) of PSNH. Effective June 29,1992, North Atlantic Energy Service Corporation (NAESCO, another newly formed, wholly owned, subsidiary of NU), replaced NHY as the managing agent and will represent the Seabrook joint owners, including NAEC, in the operation of Seabrook 1. On June 29,1992, all NHY employees became employees of NAESCO.
The Connecticut Ught and Power Company, PSNH, Westem Massachusetts Electric Company, and Holyoke Water Power Company are the operating subsidiaries comprising the Northeast Utilities system (the system) and are wholly owned by NU. Other wholly owned subsidiaries of NU provide substantial support services to the system. Northeast Utilities Service Company (NUSCO) supplies centralized accounting, administrative, data processing, engineering, financial, legal, operational, planning, purchasing.
j and other services to the system companies. Northeast Nuclear Energy Company acts as agent for system companies in constructing and operating the Millstone nuclear generating facilities.
All transactions among affiliated companies are on a recovery of cost basis which may include amounts representing a retum on equity, and are subject to approval by various federal and state regulatory
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agencies.
l Public Utility Regulation NU is registered with the Securities and Exchange Commission (SEC) as a holding company under the Public Utility Holding Company Act of 1935 (1935 Act), and it and its subsidiaries, including NAEC, are subject to the provisions of the 1935 Act. Arrangements among the system companies, outside agencies, and other utilities covering interconnections, interchange of electric power, and sales of utility property are subject to regulation by the Federal Energy Regulatory Commission (FERC) and/or the SEC. The Company is subject to further regulation for rates and other matters by the FERC and the New Hampshire Public Utilities Commission (NHPUC) and follows the accounting policies prescribed by the commissions.
Seabrook Power Contract On June 5,1992, NAEC and PSNH entered into the Seabrook Power Contract (Contract), under which PSNH is obligated to buy from NAEC, and NAEC is obligated to sell to PSNH, all of NAEC's 35.6 percent ownership share of the capacity and output of Seabrook 1 for a period aqual to the length of the Nuclear Regulatory Commission's (NRC) full power operating license for Seabrook 1. The Contract is included as part of the rate agreement between PSNH and the state of New Hampshire (the Rate Agreement). Under,
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North Atlantic Energy Corporation i
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NOTES TO FINANCIAL. STATEMENTS the Contract, PSNH is unconditionally obligated to pay NAEC's cost of service during this period whether or not Seabrook 1 is operating. NAEC's cost of service includes all of its Seabrook-related costs, including operation and maintenance expense, fuel expense, property tax expense, depreciation expense, and certain overhead and other costs.
The Contract establishes the value of the initial investment in Seabrook at $700 million (in!!!al Investment) and the initial investment in nuclear fuel of $0. NAEC is depreciating its initial investment on a straight line basis over the remaining term of Seabrook 1's full power operating license. Any subsequent additions to Seabrook 1 w!Il be depreciated on a straight-line basis over the remaining term of the Contract at the time the additions are brought into service. The Contract provides that NAEC's retum on its allowed investment in Seabrook 1 (its investment in working capital, fuel, capital additions after the date of commercial operation of Seabrook 1 and a portion of the initial Investment) is calculated based on NAEC's actual capitalization from time to time over the term of the Contract, which includes its actual debt and preferred equity costs, and a common equity co;;t of 12.53% for the first ten years of the Contract, and thereafter at an equiry rate of retum to be fixed in a filing with FERC.
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If Seabrook 1 is shut down prior to the expiration of the NRC operating license term, PSNH will be unconditionally required to pay NAEC termination costs for 39 years, less the period during which Seabrook 1 has operated. These costs are designed to reimburse NAEC for its share of Seabrook 1 cance!!ation and decommissioning costs and to pay NAEC a retum of and on any undepreciated balance of its initial investment in the plant over the then-remaining term of the Contract, and the retum of and on i
any capital additions to the plant rnade after the Acquisition Date over a period of five years after shut b
down (net of any tax benefits to NAEC attributable to such shut down).
The portion of NAEC's inttla! Investment included in rates is prescribed by the Contract. The deferred retum on the excluded portion of the InitialInvestment will become a component of NAEC's cost of service beginning in the first year after the end of PSNH's fixed rate period (the Fixed Rate Period), which continues through May 1997. See Note 1. Summary of Significant Accounting Policies - Phase 4n Plan, below, for additional information regarding NAEC's phase-in plan.
Nuclear Fuel and Spent Nuclear Fuel Disposal Costs l
The cost of nuclear fuel is amortized to operation expense using a units-ofproduction method at rates based on estimated kilowatt-hours of energy provkfed.
Under the Nuclear Waste Policy Act of 1982, NAEC must pay the United States Department of Energy (DOE) for the disposal of spent nuclear fuel and high-level radioactive waste. Fees are paid to the DOE on a quarterly basis.
Under the Energy Policy Act of 1992 (Energy Act). NAEC wIl be assessed for its proportionate share of the costs of the decontar sination and decommissioning of uranium enrichment plants operated by the DOE (D&D assessment). The Energy Act imposes an overall cap of $2.25 billon on the obligation of the cciriimicial power industry and limits the annual special assessment to $150 milion each year over a 15-year period. The Energy Ad also requires that regulators treat D&D assessments as a reasonable and necessary cost of fuel, to be fully recovered in rates, like any other fuel cost. The cap and annual recovery amounts wDI be adjusted annually for inflation. The D&D assessment wDI be allocated among utilties based upon services purchased in prior years. At December 31,1992, NAEC's share of these estimated costs was approximately $5.0 ml!!!on. Management expects that NAEC will be allowed to recover these costs. (s
North Atlantic Energy Corporation NOTES TO FINANCIAL STATEMENTS Accordingly, NAEC has recognized these costs as an obligation with a corresporxfing regulatory asset on its Btdance Sheet.
Depreciation The provision for depreciation is calculated using the straight-line method based on estimated remaining lives of depreciable utility plant-in service, adjusted for salvage value and removal costs as approved by the FERC. Except for major facHities, depreciation factors are applied to the avemge plant-in-service during the period. Major facDities are depreciated from the time they are placed in service. When plant is retired from service, the original cost of plant, including costs of removal, less salvage, is charged to the accumulated provision for depreciation. For Seabrook 1, the costs of removal,less satvage, that have been funded through external decommissioning trusts wlil be charged to those trusts. See Note 2. Nuclear Decommissioning, for additional information.
The depreciation rates for the several classes of electric plant-in-service are equivalent to a composite rate of 3.2 percent in 1992.
Jointly Owned Utility Plant NAEC has a 35.6 percent joint-ownership interest in Seabrook 1, a 1,150-MW nuclear generating unit.,
NAEC sells a!! of its share of the power generated by Seabrook 1 to PSNH. As of December 31,1992, plant-in-service and the accumutated provision for depreciation included approximately $756.8 mi!! ion and
$36.3 mulion, respectively, for NAEC's share of Seabrook 1. NAEC's share of Seabrook 1 expenses is included in the operating expenses on the accompanying Statement of income.
A income Taxes The tax effect of timing differences (differences between the periods in which transactions affect income in the financial statements and the periods in which they affect the determination of income subject to tax) is accounted for in accordance with the ratemaking treatment of the FERC. See Note 5 for the components of income tax expense.
When NU acquired PSNH on June 5,1992, PSNH and NAEC became parties to the Tax Allocation Agreement among the members of the NU system. The Tax Allocation Agreement requires each member of the NU system to pay to NU the amount, if any, that would have been its federal income tax liabl!!ty if it had filed a separate retum, with certain adjustments, and requires NU to distribute the excess of the sum of such payments over the NU system's consolidated federal income tax liabRity among those members of the NU system that had tax items that reduced the NU system's current consolidated tax liability. A substantial portion of NAEC's cash flow for the first few years is expected to consist of payments made by NU to NAEC under the Tax Allocation Agreement. The amount of such payments wBI decrease over time but is expected to remain substantial during the first few years when NAEC is expected to incur losses for tax purposes due to the accelerated tax depreciation of Seabrook 1.
Under the Tax Allocation Agreement, NAEC's tax losses may be utitzed to offset taxable income of the NU system and NU is required, under the Tax Allocation Agreement, to pay NAEC for the use of such tax benefits. Such tax losses, if not fully utRized in the taxable year in which they were incurred, may be carried back to each of the three taxable years of the NU system preceding the taxable year in which they are incurred. If the NU system does not have enough taxable income in the taxable year in which such losses are incurred or in the preceding taxable years to permit it to take full advantage of such tax losses, or if the Nu system is in an attemative minimum tax position in any such year, then the amount of payments under the Tax Allocation Agreement to NAEC will be decreased and NAEC's cash flow wCI be adverse!y affected. The
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r North Atlantic Energy Corporation NOTES TO FINANCIAL STATEMENTS NU system anticipates that, depending on a number of factors, it will be subject to an attemative minimum tax on !!s 1992 federal tax retum. The effect on NAEC's cash flow is not expected to be materially adverse.
No assurance can be given that NAEC's cash flow will no! be adversely af'ected in subsequent years by the inabiltty of the other members of the NU system to utilize fully the tax losses expected to be incurred by NAEC.
In February 1992, the Financial Accounting Standards Board (FASB) issued a Statement of Financial Accounting Standards No.109, Accounting for Income Taxes (SFAS 109). SFAS 109 supersedes previously issued income tax accounting standards and is effective beginning January 1,1993. When SFAS 109 is adopted, it will not have a material effect on NAEC's financial position or results of operations.
Allowance for Funds Used During Construction (AFUDC)
AFUDC, a noncash cost calculated in accordance with FERC guidelines, represents the estimated cost of capital funds used to finance NAEC's construction program. These costs, which are one component of the total capitalized cost of construction, are not recogn! zed as part of the rate base for ratemaking purposes until facilities are placed in service. The effective AFUDC rates under the gross-of-income tax method for 1992 was 6.1 percent.
Phase-In Plan As described below, NAEC is phasing into rates its investment in Seabrook 1. The plan is in compliance with Statement of Financial Accounting Standards No. 92, Regulated Enterprises. Accounting for Phase-In Plans.
(k As prescribed by the Contract, NAEC is phasing in its initial Investment. The portion of the initial investment on which NAEC is entitled to sam a cash retum was 40 percent at the Acquisition Date, and will increase by 15 percent in each of the following four years beginning May 15,1993. Between the May 16,1991 reorganization date of PSNH (Reorganization Date) arH the Acquisition Date, PSNH recorded s
$50.9 million of deferred retum on its investment in Seabrook 1. R accordance with the Rate Agreement.
PSNH transferred the $50.9 million of deferred retum balance to F AEC along with the other Seabrook assets. NAEC recorded the $50.9 million as an adjustment to utility plant. From the Acquisition Date through December 31,1992, NAEC recorded an additional S22.8 million of deferred retum, which is recorded in Deferred costs - Seabrook on the Balance Sheet. The deferred retum on the excluded portion of the Initial Investment, including the $50.9 million, will be recovered with carrying charges beginning stx months after the end of PSNH's Fixed Rate Period (which continues through May 1997) and will be fully recovered by May 15,2001, 2.
NUCLEAR DECOMMISSIONING A 1991 Seabrook decommhsloning study confirmed that complete and immediate dismandement at retirement is the most viable and economic method of decommissioning Seabrook 1. Decommbsloning studies are reviewed and updated periodically to reflect changes in decommissioning requirements, technology, and inf!ation.
The estimated cost of decommissioning NAEC's ownership share of Seabrook 1, in y8ar-end 1992 dollars, is $124.9 mi!! ion. Nuclear decommhsioning costs are included in depreciation expense on the Statement of income. Nuclear decommissioning, as a cost of removal, is included in the accumulated provision for deprec ation on the Balance Sheet.
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North Atlantic Energy Corporation f
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N,QTES TO FINANCIAL STATEMENTS Under the 'erms of the Rate Agreement, PSNH is obligated to pay NAEC's share of Seabrook's decommissioning costs, even if the untt is shut down prior to the expiration of its operating license.
NAEC's portion of the cost of oecommissioning Seabrook 1 is paid to an independent decommissioning financing fund managed by the state of New Hampshire. As of December 31,1992, NAEC (including pre-Acquisition Date payments made by PSNHJ paid approximately 54.7 million into Seabrook 1's decommissioning financing fund. The decommissioning fund is reported on the Balance Sheet, at cost, which approximates rni rket.
3.
SHORT-TERM DEBT NAEC is a limited participant in the Northeast Utilities System Money Pool (Pool). As a limited participant, NAEC is limited to borrowing funds provided by NU parent. The Pool provides a more efficient use of the cash resources of the system, and reduces outside short-term borrowings. NUSCO administers the Pool as agent for the member companies. Short. term borrowing needs of the member companies are first met with avai!able funds of other member companies, including funds borrowed by NU parent. NU parent may lend to the Pool but may not borrow. However, borrowings based on loans from NU parent bear interest at NU parent's cost and must be repaid based upon the terms of NU parent's original borrowing. Funds may be withdrawn from or repaid to the Pool at any time without prior notice. Investing and borrowing subsidiaries receive or pay interest based on the average daily Federal Funds rate.
The amount of short-term borrowings that may be incurred by the system companies is subject to periodic approval by the SEC under the 1935 Act. Under the SEC restrictions, NAEC was authorized, as of January 1,1993, to incur short-term borrowings up to a maximum of $50 million.
4.
LONG-TERM DEBT Details of long-term debt outstanding are:
Decembat 31.1992 (Thousands of Dollars)
First Mortgage Bonds:
9.05 % Series A, due 2002.
$355,000 Notes:
15.23% due 2000....
205.000 Long-term debt, net.......
$560 000 j
Long-term debt maturities and cash sinking-fund requirements on debt outstanding at December 31,1992 for the years 1995 through 1997 are $20,000.000 per year.
The Series A Bonds are not redeemable prior to maturity except out of proceeds of sales of property subject to the lien of the Series A First Mortgage Bond indenture (Indenture), at general redemption prices established by the Indenture. and out of condemnation or insurance proceeds and through the operation of the sinking fund discussed above.
Essentially all of NAEC's utility plant is subject to the lien of its Indenture. s
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North Atlantic Energy Corporation HRTJS TO FINANCIAL. STATEMENTS
'l 5.
INCOME TAX EXPENSE i'
The components of the federal and state income tax provisions are:
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For the Period June 5 to December 31 1992 (Thousands of Dollars)
- i 3
Current income taxes:
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Federal.......
$(16.350)
State......
Total current..........
(16.350)
Deferred income taxes, net:
Fed eral.............................
16.240 State.............................
1.979 l
Total deferred...................
18.219 Total income tax expense.................
$ 1.869 The components of total income tax expense are classified as follows:
income taxes charged to operating expenses.....
$ 2,583 income taxes associated with AFUDC and deferred Seabrook 1 retum - borrowed funds.................
9.714 l
Other income taxes - credit...........................
(10.428) i e
Total income tax expense...........................
$ 1.869
.1 Deferred income taxes are comprised of the tax effects of timing differences as follows:
j For the Period June 5 to December 31 1992 i
(Thousands of Dollars)
Depreciation......................................
$16,146 l
Attemative minimum tax.............................
(7,641)
AFUDC and deferred Seabrook 1 retum, net..............
9.714 Deferred income taxes, net..........................
1.1E2.12 i
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i North Atlantic Energy Corporation NOTES TO FINANCIAL. STATEMENTS The effectNe income tax rate is computed by dividing total income tax expense by the sum of such taxes and net income. The differences between the effective rate end the federal statutory income tax rate are:
For the Period June 5 to December 31 1992 34.00 %
Federal statutory income tax rate Tax effect of differences:
(10.61)
Depreciation differences.......
(18.16)
Deferred Seabrook 1 retum - other funds State income taxes, net of federal benefit 8.96 (1 36)
Other, net 12 83%
EffectNe income tax rate..
6.
DEFERRED OBLIGATION - AFFILIATED COMPANY At the time PSNH emerged from bankruptcy on May 16,1991, in accordance with the phase-in under the Contract. It began accruing a deferred retum on a portion of hs Seabrook investment. From May 16,1991 to the Acquisition Date, PSNH accrued a deferred retum of $50.9 m!!! ion. On the Acquisition Date. PSNH transferred the $50.9 million deferred retum to NAEC as part of the Seabrook-related assets.
At the time PSNH sold the deferred retum to NAEC, h realized, for income tax purposes, a gain that is deferred under the consolidated income tax rules. This gain will be restored for income tax purposes when
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the deferred retum of $50.9 million, and the associated income taxes of $32.9 million, are collected by NAEC through the Contract. When NAEC recovers the $32.9 million in years eight through ten of the Rate Agreement, it is obligated to make corresponding payments to PSNH.
On the Acquisition Date, NAEC recorded the $32.9 million of income taxes associated with the deferred retum as an adjustment to the purchase price of the Seabrook-related assets, with a corresponding obligation to PSNH, on its Balance Sheet.
7.
COMMITMENTS AND CONTINGENCIES Seabrook 1 Construction Program The construction program for Seabrook 1 is subject to periodic review and revision. Actual construction expenditures may vary from estimates due to factors such as inflation, revised nuclear safety regulations, delays, difficutties in the licensing process, the availability and cost of capital, and other actions taken by regulatory bodies.
NAEC currently forecasts construction expenditures (including allowance for funds used during construction) for its share of Seabrook 1 to be $47.4 million for the years 1993-1997, including $8.6 million fci 11@3. In addition NAEC estimates that l!s share of Seabrook 1 nuclear fuel requirements will be
$65.4 tr.ilion for the years 1993-1997, including $16.6 million for 1993.
Environme ttal Matters i
NAEC is subject to regulation by federal, state, and local authorities with respect to air and water quality, harxHing and the disposal of toxic substances and hazardous and solid wastes, and the handling and use 1 i
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North Atlantic Energy Corporation
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NOTES TO FINANCIAL STATEMENTS of chemical products. The cumulative long-term economic cost impact of increasingly stringent environmental requirements cannot be estimated. However, NAEC has an active environmental auditing -
program to detect and remedy noncompliance with environmental laws or regulations. NAEC may incur significant additional costs, greater than amounts included in cost of removal and other reserves, in connection with the generation of electricity and the storage, transportation, and disposal of by-products and wastes. NAEC may also encounter significantly increased costs to remedy the environmental effects of prior waste handling and disposal practices.
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In most cases, the extent of additional future environmental cleanup costs is not estimable due to factors such as the unknown magnitude of possible contamination, the possible effects of future legislation and regulation, the possible effects of technological changes related to future cleanup, and the difficulty of determining future liability, if any, for the cleanup of sites at which NAEC may be informed that it may be determined to be legally liable by the Unhed States Environmental Protection Agency, or the New Hampshire Department of Environmental Services. In addition, NAEC cannot estimate the potentialliability for future claims that may be brought against h by private parties. However, considering known facts and existing laws and regulatory practices, management does not believe such matters will have a materially adverse effect on NAEC's financial position or future results of operations.
Changing environmental requirements could hinder future construction.
Changing environmental I
requirements could also require extensive and costly rnodifications to NAEC's existing investment in Seabrook 1 and could raise operating costs significantly. However, NAEC believes that it is in substantial compliance with current environmental laws and regulations.
Nuclear insurance Contingencies The Price-Anderson Act currently limits public liability from a single incident at a nuclear power plant to
$7.9 bl!! ion. The first $200 mR! ion of liability would be provided by purchasing the maximum amount of t
commercially available insurance. Additional coverage of up to a total of $7.3 bution would be provided by an assessment of $63 mil! Ion per incident, levied on each of the 116 nuclear units that are currently subject to the Secondary Financial Protection Program in the United States, subject to a maximum assessment of $10 million per incident per nuclear unit in any year. In addition, if the sum of all public liabi!!ry claims and legal costs arising from any nuclear incident exceeds the maximum amount of financial protection, each reactor operator can be assessed an additional 5 percent, up to $3.2 million, or
$365.4 million in total, for all 116 nuclear units. The maximum assessment is to be adjusted at least every five years to reflect inflationary changes. Based on NAEC's ownership interests in Seabrook 1, the j
maximum liabl!!!y would be $23.5 mulion per incident. Payments for NAEC's ownership interest in i
Seabrook 1 would be limited to a maximum of $3.6 mR! ion per incident per year.
Insurance has been purchased from Nuclear Electric Insurance Limited (NEIL) to cover the cost of repair, replacement, or decontamination or premature decommissioning of utgity property resulting from i
occurrences with respect to NAEC's ownership interest in Seabrook 1. All companies insured with NEIL are subject to retroactive assessments if losses exceed the accumulated funds avalable to NEIL The maximum potential assessments against NAEC with respect to losses arising during current policy pars are approximately $4.6 milrion under the property damage, decontamination, and decommissioning policies. Although NAEC has purchased the limits of coverage currently avalable from the conventional nuclear insurance pools, the cost of a nuclear incident could exceed avaBable insurance proceeds.,
i
l North Atlantic Energy Corporation NOTES TO FINANCIAL STATEMENTS Insurance has been purchased from American Nuclear Insurers / Mutual Atomic Energy Liabl!!!y Underwriters, aggregating $200 million on an industry basis for coverage of worker claims. All companies insured under this coverage are subject to retrospectrve assessments of $3.2 million per reactor. The maximum potential assessments against NA:.C with respect to losses arising during the current policy period are approximately $1.2 mil! ion.
Under the terms of the Contract, any nuclear insurance assessments described above would be passed on to PSNH as a ' cost of service."
EUA Power Corporation NAEC could be affected by the ability of other Seabrook joint owners to fund their share of Seabrook Costs.
On February 28,1991 EUA Power Corporation (EUAP) filed a voluntary petition for protection under Chapter 11 of the United States Bankruptcy Code. EUAP's principal asset is its 12.13 percent joint interest in Seabrook 1. On February 5,1993, with SEC approval, EUAP redeemed all of its preferred and common stock from its parent company, terminating EUAP's status as a subsidiary of a public utility holding company and SEC jurisdiction under the 1935 Act. In addition, EUAP also formally changed its name to Great Bay Power Corporation. A confirmation hearing on an amended plan of reorganization has been scheduled ftf the beginning of March 1993. If the Bankruptcy Court confirms the plan, it will still need to be approved by the NRC, NHPUC, and FERC.
8.
FAIR VALUE OF FINANCIAL INSTRUMENTS m
in December 1991, the FASB issued Statement of Financial Accounting Standards No.107. Disclosures About Fair Values of FinancialInstruments (SFAS 107). SFAS 107 requ\\res companies to disclose the estimated fair value of their financial instnJments for which it is practicable to estimate fair value.
The following methods and assumptions were used to estimate the fair value of each of the following financial instruments:
Cash: The carrying amount approximates fair value.
Nuclear decommissioning trust The carrying amount approximates fair value.
Long-term debt: The fair value of NAEC's long-term debt is based upon the quoted market price for those issues, or similar issues.
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North Atlantic Energy Corporation
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NOTES TO FINANCIAL STATEMENTS The carrying amount of NAEC's financial instruments and the estimated fair value at December 31,1992, is as follows:
Carryino Amount Fair Value (Thousands of Dollars)
Long-term debt - First Mortgage Bonds
$355 000
$369700 Other long-term debt
$205 000
$262 400 The fair values shown above have been reported to meet the disclosure requirements of SFAS 107 and do not purport to represent the amounts that those obligations would be settled at.
9.
NAEC CONDENSED PRO FORMA STATEMENT OF INCOME (UNAUDITED)
The following condensed pro forma statement of income of NAEC gives effect to the incorporation of the Company for the purpose of acquiring and holding PSNH's 35.6 percent interest in Seabrook. For purposes of calculating twelve-month pro forma income statement data, it is assumed that the incorporation of NAEC, the acquis!! ion of PSNH by NU, and the purchase of Seabrook by the Company occurred as of the baginning of the period. Prior to June 5,1992, NAEC had no historical operations.
(O The adjustments necessary to derive the pro forma data are based on available information and certain C
assumptions, including the following:
(1)
The following pro forma income staiement for the twelve months ended December 31,1992 includes NAEC's share of certain Seabrook operating expense data derived from PSNH's audited historical operating results for the period January 1,1992 through June 4,1992.
(2)
At the Acquisition Date, NAEC and PSNH entered into the FERC approved Contract. For purposes of calculating the following pro forma data of the Company, the FERC approved rate of 12.53 percent is used as the retum on common equity component in the Contract.
(3)
Under the Contract, NAEC is not allowed to sam an immediate cash retum on all of its initial Investment, but instead will be required to phase-in its retum on the initial Investment. NAEC is entPJed to eam a noncash deferred retum on the portion of the Initial Investment not yet phased into rates. m
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North Atlantic Energy Corporation
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NOTES TO FINANCIA1. STATEMENTS NAEC Condensed Pro Forma Statement Of income (Unaudited)
{
Historical June 5,1992 Pro Forma to Giving Effect l
December 31, Pro Forma To-1992 Adjustments Acquisition For the Year Ended December 31.1992 (Audited)
(Unaudned)
(Unaudited)
(Thousands of Dollars)
'i Operating Revenues.
578.444
$42.956 (a)
$121.400 l
t Operating Expenses:
. 26,581 (b)
_73,415 -
Other operation.
46 834 Depreciation........................
12,905 9.206 (b)
-22,111 l
Federal and state income taxes.......
2.583 304 (c) 2,887 l
Total operating expenses...
_ 62.322 36.091 98.413-i Operating income....................
16,122 6,865 22,987 Other income......
18,412 10,340 (c) 35,411 l
6.659 (d) interest Charges....................
21,831 (14,918)(d) 34,746 h
27,436 (e) i 397 (e)
),,,Q29
}2),fg f
Net income.........................
),1,2,222 1
The pro forma financial data are presented to comply with the SEC's regulations, which permit only limited adjustments to historical data.
The pro forma financial data are neither a forecast or projection for any future date or period, nor are the'y a representation d what the Company's resutts d operations would actually have been if such transactions in fact had occurred during the period presented.
See accompanying Notes to Condensed Pro Forma Statement of income.
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North Atlantic Energy Corporation NOTES TO FINANCIAL STATEMENTS t
Notes To Condensed Pro Forma Statement of income
.[
i (a)
Reflects NAEC's operating revenues under the Contract.
(b)
Reflects Seabrook-related operating expenses for the period January 1,1992 through June 4,1992, which are derived from historical PSNH operating results.
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(c)
Adjustment for operating expenses reflects pro forma income tax expense and adjustment to other income reflects income tax benefit.
i (d)
Reflects the noncash deferred retum on the portion of the Seabrook investment not included in rate base.
(e)
Reflects annualized interest adjustment on debt as follows:
f Principal Annualized i
Outstandina Interest Long-Term Debt:
{
9.05% First Mortgage Bonds (Series A due 2002) (1).
$355,000
$13,775 i
Notes (15.23%) (2)(3).............................
205,000 13,387
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Amortization of Debt issuance Costs.
N/A
'274 mum uza a
Short-Term Debt:
- f Northeast Utilities System Money Pool (4)
(assumed rate of 5.0%)...........
$ 18.500 W
(1)
Issued on Acquisition Date.
i (2)
Issued on May 16,1991 in connection with the emergence of PSNH from bankruptcy.
i (3)
At the Acquisition Date, NAEC assumed PSNH's obligations under the Notes.
i (4)
Adjusts short-term debt interest for the period January 1,1992 to June 4,1992.
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i North Atlantic Energy Corporation c
I Reocrt of Indeoendent Public Accountants To the Board of Directors of North Atlantic Energy Corporation:
We have audited the balance sheet of North Atlantic Energy Corporation (a New Hampshire corporation and a wholly owned subsidiary of Northeast Utillties) as of December 31,1992, and the related statements of income, common stockholder's equity, and cash flows for the period from June 5,1992 to December 31,1992.
These financial statements are the responsib!! tty of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairty, in all material respects, the financial position of North Atlantic Energy Corporation as of December 31,1992, and the resu!ts of its operations and cash flows for the period from June 5,1992 to December 31,1992, in conformity with generally accepted accounting
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principles.
ARTHUR ANDERSEN & CO.
Hartford, Connecticut February 19,1993 l
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North Atlantic Energy Corporation Q
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This section contains management's assessment of North Atlantic Energy Corporation (the company or NAEC) financial condition and the principa? factors having an impact on the resutts of operations.
The company is a wholly-owned subsidiary of Northeast Ut!!! ties (NU). This section should be read in conjunction with the company's financial statements and footnotes.
FINANCIAL CONDITION Overview On June 5,1992 (the Acquisition Date), NU and Public Service Company of New Hampshire (PSNH) completed an affiliation, which represented the second step of a two-step bankruptcy court approved plan (the Plan) that was devised in 1989 to retum then-bankrupt PSNH to financial health. The first step took place on May 16,1991 (the Reorganization Date) when PSNH emerged from bankruptcy as a stand-alone company, subject to a Merger Agreement (the Merger Agreement) with NU's subsidiaries Northeast Uti!ities Service Company and NU Acquisition Corporation (NUAC). The final step in the affiliation plan occurred on June 5,1992, when NUAC merged into PSNH pursuant to the Merger Agreement and PSNH became a wholly owned operating subsidiary of NU. In a related transaction, PSNH's 35.6 percent share of the Seabrook 1 nuclear power plant (Seabrook) and other Seabrook-related assets were transferred to the company. On June 29,1992, North Atlantic Energy Service Corporation, another wholly owned subsidiary of NU, received approval to manage Seabrook as agent
,O for the Seabrook joint owners.
At the Acquisition Date, PSNH and the company entered into the Seabrook Power Contract, under which PSNH is obligated to buy from the company, and the company is obligated to sell to PSNH, all of the company's capacity and output of Seabrook for a period equal to the length of the "aclear Regulatory Commission full-power operating license for Seabrook (through 2026). Under the contract, PSNH is unconditional!y obligated to pay the company's ' cost of service
- during the period whether or not Seabrook is operating and without regard to the cost of attemative sources of power. In addition, PSNH will be obligated to pay decommissioning and project cancellation costs after the termination of the operating license.
The company's
- cost of service
- Includes all of its prudently incurred Seabrook-related costs, including operation and maintenance expense, fuel expense, property tax expense, depreciation expense, certain overhead and other costs, and a phased-in retum on its Seabrook investment. The Seabrook Power Contract established the inttla! recoverable investment in Seabrook at $700 mi!! ion (Initial investment),
plus any capital additions, net of depreciation.
The company's only assets are Seabrook and other Seabrook related assets and its only source of revenue is the Seabrook Power Contract. PSNH's obilgations under the Seabrook Power Contract are 4
solely its own and have not been guaranteed by NU. The Seabrook Power Contract contains no provisions entitling PSNH to terminate its obligations. If, however, PSNH were to fat to perform its obligations under the Seabrook Power Contract, the company would be required to find other purchasers for Seabrook power.
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PSNH's rate agreement with the State of New Hampshire (Rate Agreement) provides the financial basis O
for the affiliation plan. It sets out a comprehensive plan of rates for PSNH, providing for seven base rate (V) increases of 5.5 percent per year (the Fixed Rate Period) and a comprehensive Fuel and Purchased Power Adjustment Clause (FPPAC). The first of these base rate increases was put in effect on January 1,1990. The second and third rate increases took place on May 16,1991 and June 1,1992, respectively, and the remaining four increases are effective annually on each June 1 beginning in 1993.
The FPPAC allows PSNH to recover from !!s customers the difference between actual prudent energy and purchased power costs, including the costs incurred under the Seabrook Power Contract, and the costs included in base rates.
Under the Seabrook Power Contract, the company is not entitled to eam an immediate cash retum on the futi amount of its initial Investment in Seabrook, but instead is required to phase-in its retum on the initial Investment. The portion of the initial investment on which the company is entitled to eam a retum is 20 percent in the first year after the Reorganization Date, increasing by 20 percent in the second year and by 15 percent in each of the next four years, resulting in 100 percent recovery in the sixth and each succeeding year. The company is entitled to eam a noncash deferred retum on the portion of the Initial investment not yet phased into rates. The deferred retum on the excluded portion of the initial Investment wl!! be recovered, together with a retum on it, beginning in the first year after the Fixed Rate Period, and will be fully recovered prior to the tenth anniversary of the Reorganization Date. The company is currently eaming a retum on 40 percent of its Seabrook investment.
When PSNH emerged from bankruptcy on May 16,1991, in accordance with the phase-in under the Seabrook Power Contract, it began accruing a deferred retum on a portion of its Seabrook investment.
From May 16,1991 to the Acquisition Date, PSNH accrued a deferred retum of $50.9 million. On the Acquisition Date. PSNH transferred the $50.9 million deferred retum to the company as part of the Seabrook-related assets. NAEC recorded the $50.9 million as an adjustment to utility plant.
At the time PSNH transferred the deferred retum to NAEC, it realized, for income tax purposes, a gain that is deferred under the consolidated income tax rules. This gain will be restored for income tax purposes when the deferred retum of $50.9 million, and the associated income taxes of $32.9 million, are collected by N AEC from PSNH through the Seabrook Power Contract over the period beginning six months after the end of the Fixed Rate Period through May 15, 2001. When NAEC recovers the
$32.9 million, it is obligated to make corresponding payments to PSNH. On the Acquisition Date, NAEC recorded on its balance sheet the $32.9 million as an adjustment to the purchase price of the Seabrook-related assets, with a conesponding obligation to PSNH.
In 1992, the company recorded a deferred assessment and obligation for the estimated costs for the company's Seabrook share of an assessment for costs for the decontamination and decommissioning of uranium enrichment plants operated by the United States Department of Energy (DOE). The company expects to recover these amounts from PSNH as part of the cost of Seabrook fuel.
The company could be affected by the abl!!!y of other joint owners of Seabrook to fund their share of the unit's costs. See the Notes to Financial Statements for information regarding EUA Power Corporation.
Seabrook Performangs The Seabrook 1 plant operated at 77.9 percent of capacity for the twefve months ended December 31, 1992 compared with 67.6 percent in 1991 and a 1992 national average of 69.7 percent. The unit was shutdown on September 7,1992 for refueling and rnaintenance and retumed to service on O b
November 13,1992. In 1991, the unt! was shut down for refueling and maintenance for approximately 11 weeks.
M Environmental Mat'ers NAEC is subject to regulation by federal, state, and local authorities with respect to air and water quality, handling and the disposal of toxic substances and hazardous and solid wastes, and the handling and use of chemical products. The cumulative long-term economic cost impact of increasingly stringent environmental requirements cannot be estimated However, NAEC has an active environmental auditing program to detect and remedy noncompliance with environmentallaws or regulations. NAEC may incur significant additional costs, greater than amounts included in cost of removal and other reserves, in connection with the generation of elecM 'ity and the storage, transportation, and disposal of by-products and wastes. NAEC may also encounter significantly increased costs to remedy the environmental effects of prior waste handling and disposal practices.
In most cases, the extent of additional future environmental cleanup costs is not estimable due to factors such as the unknown magnitude of possible contamination, the possible effects of future legislation and regulation, the possible effects of technological changes related to future cleanup, and the difficulty of determining future liability, if any, for the cleanup of sites at which NAEC may be informed that it may be determined to be legally liable by the United States Environmental Protection Agency, or the New Hampshire Department of Environmental Services. In addition, NAEC cannot estimate the potential liabi!!ty for future claims that may be brought against it by private parties. However, considering known facts and existing laws and regulatory practices, management does not believe such matters will have a materially adverse effect on NAEC's financial posttion or future resutts of operations.
Changing environmental requirements could hinder future construction. Changing environmental requirements could also require extensive and costly modifications to NAEC's existing investment in Seabrook and could raise operating costs significantly. However, NAEC believes that it is in substantial
(
compliance with current environmentallaws and regulations.
Liauidity and Cooltal Resources At the Acquisition Date, NAEC assumed PSNH's obligations under $205 million of 15.23 percent notes (the Notes) and paid $504 mi!! ion to PSNH for the purchase of PSNH's interest in Seabrook. The company financed these requirements out of the proceeds from the sale of $355 million Series A First Mortgage Bonds and the sale of its common stock to NU for $161 million. As a result of these transactions and the assumption of the Notes, the company's initial capitalization is approximately 78 percent debt and 22 percent common equity. In addition, the company borrowed amounts under the NU system Money Pool for ongoing cash requirements. As of December 31,1992, borrowings under the Money Pool were $18.5 million. (See Notes to financial Statements for information regarding the Money Pool.)
The company will have ongoing cash requirements for Seabrook-related capital expenditures, nuclear fuel expenditures, interest and operating expenses. Electric construction expenditures and nuclear fuel expenditures amounted to $6.8 million for the period June 5,1992 to December 31,1992. Capital expenditures for the period 1993 through 1997 are expected 1o be approximately $47.4 mUlion (including AFUDC), including $8.6 million for 1993. Nuclear fuel expenditures for the same period are expected to be approximately $65.4 mi!! ion (excluding AFUDC),,ncluding $16.6 mH! ion for 1993. Such cash requirements are expected to be met from payments under the Seabrook Power Contract and the Tax Allocation Agreement, except that to the extent some or all of the capital expenditures and nuclear fuel expenditures may have to be financed, the company expects to borrow under the Money Pool.
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22
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The company has negative cash flow from operations for the period June 5.1992 through December 31, 1992 due to a substantial portion of its eamings being noncash. Cash flow from operations is expected
(
to improve in 1993 as a resutt of the continued phase-in of NAEC's Seabrook investment and payments under the Tax Allocation Agreement with NU.
A substantial portion of the company's cash flow for the first few years is expected to consist of payments made by NU to the company under a Tax Allocation Agreement that the company entered into with NU at the time of the acquisition. The amount of such payments will decrease over time but is expected to remain substantial during the first few years when the company is expected to incur losses for tax purposes due to accelerated tax depreciation of Seabrook. The company received $16 million from NU for the period June 5,1992 to December 31,1992 under this agreement. No assurance can be grven, however, as to the extent of the future benefits if any, that will actually accrue to the company under the Tax Allocation Agreement. (See Notes to Financial Statements for further information regarding the Tax Allocation Agreement.)
RESULTS OF OPERATIONS The company has no historical resu!!s prior to June 5.1992 and therefore the Statement of income is for the period June 5,1992 through December 31,1992.
Operating revenues represent amounts from PSNH under the terms of the Seabmok Power Contract and billings to PSNH for decommissioning expense.
Operating expenses represent the costs incurred for the operation of Seabrook.
The deferred Seabrook retum represents the investment return not recovered currently on the portion of the Seabrook investment not reflected in rate base for the period June 5,1992 through December 31, 1992.
Income taxes included in other income represent the tax benefits related to the portion of the Seabrook investment not reflected in rate base.
Interest on long-term debt and other interest reflects the interest expenses on the debt incurred and assumed at the acquisition.
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North Atlantic Energy Corporation SELECTED FINANCIAL DATA s
For the Period June 5 to December 31 1992 (Thousands of Dollars).
Operating Revenues........
$ 78 444 Operating income.....
$ 16122 1
i
$ 12 703 Net incomo Cash DMdends on Common Stock...
Total Assets.............
$818123 i
Long. Term Debt
$560 000 i
STATISTICS Gross Electric UtHity L%!2 l
Plant December 31, (Thousand of Dollars).......
$774 920 kWh Sales (MHlions)........
1.268*
l STATEMENTS OF QUARTERLY FINANCIAL DATA (Unsudited)
Quarter Ended i
1992 June 30*
Seotember 30 December 31 (Thousands of Dollars)
Operating Revenues........
$ 8.785
$ 32 439
$ 37.220 Operating income..........
$ 2.010 W
$ 7.124 Net income..............
$ 1.119
$ 6.822
$ 4.762
'For the period JNe 5.1992 to June 30,1992.
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f North Atlantic Energy Corporation I
First and Refundino Mortoace Bonds Trustee and interest Paying Agent United States Trust Company of New York 114 West 47th Street New York, New York Address General Correspondence in Care of:
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Norther,st Utilities Service Company N
investor Relations Department P.O. Box 270 Hartford, Connecticut 061410270 Tel. (203) 665-5000 Genera! Office 100 Elm Street Manchester New Hampshire 03105 f
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