ML20082N504
| ML20082N504 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 12/31/1990 |
| From: | Pardus D, Stevens J EASTERN UTILITIES ASSOCIATES |
| To: | |
| Shared Package | |
| ML20082N499 | List: |
| References | |
| NUDOCS 9109090212 | |
| Download: ML20082N504 (43) | |
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E U A SYST E M COMPANIE S
- l. astern Utilitics Anotiates 1.llA l.nerg) Imestruent Cor[xtratioti I:UA (kcan State Cor[wiration 1.t!A l'ower Corporation i UA Sersice Cor[wiration Montauli I:lectric Conipany One latwtty Sipiate I lbt Ottne lios 23 i3 ikiston. M A 02107
. (617);57-9590 j lbnall G. l'ardus, Cluirman Jolut R. Stesens, lYesident
!? astern 1:dison Company ,
.110 Mulh.ry Street lin(Leon, M A 0F:02 (508) $80-1211 -
John D Carney, President lilackstone Wiley Livetric Cornp sny hhingtan iI:rhwa:'
l..inmln,RIO28(u (J401) H bl 400 - i i Daud 11. Gulvin, Preside N :w gw>rt . *-ic Cg.. cation 12 Turir 9.
Middle .- .o "10 (101) 4 Robei -
r .i aresident T ABLE OF CONTENTS EUA Ce m . , , ,,ation 3 lb.tt M h ' o d.
i EUA Suton Profile
.UO i 17t uu ... i - .cet 2 }iighhhts gggeti, gg'oin;j
~\ Ixt rer io $hareholders (sos i110090 (i Selu ted Consohdared Joseph S. l'arpatrk k, !' resident unanual Data 7 Managenient's Ib(usdon I
-and AllaI)$is and t$es ke%
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lb I .Uthtllidate I triand.th bf atenlellt) 21 Mtes in Consolidated Snat.aal Statements
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s E U A SYS TE M PROF lLE Moniaop l icuru t 'om-p.un prm nin t in tra u3 e w in h sah to t he n i ail aulnhiuiu s (if l.l 3 athi hi u ma ip..i t b i n u , alo u s as ran l'nhe n s m Muldkh to Nhn ,h+
<\ % utes n om ms ew or. wu s .md Pa t u Rina r( 9 m m a ow ned hohhne om pu n hian! M 4! m pis:hi 9 y , ( gy,43_ 3 w host shares .m t r.uk J on a twr anon oni e r.m'"* Imm I 5 u.meu t bt New %rl.nulPas W. uou mbuJun or i l A dm wmmo 5to k i uh men undu iht ' " " 'P"' I I 'A ( h ran 5nue ( or-tu krr spnbul II A. Its illat ks.one Vatics i Ic(- ~
ranon mu alh ar,J mam-sulhlJ uru 3 ari Fr't" ipall, t ric ( 4,inpan) ;>n m uu s p< ir at ii n i h .h .is .i ? > 9 ,
Cnia, tit d lil t ht' prl tf r a t h 41, t }n t ru sers i, tsi af u nd t au t R rslit[' Int t r'.M in f ranunisuon, Jnt nbunon h 1 Puo t mtumen in tour """**""""9'*"[
tht ( Acan Man l'ow er
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an I sale e 4 ( k i, tin it s , titw na an+i tIr. t a les ist' partnership m notIkIn
' " " " " "* Rhah idand 'l he M rdated sen a ts such as ( x on al l all tPau t ut k et m tur Nou h. au and otla r nu .cw an. ca sa J t otentrat mn, anJ promot- a nd Woon sot L - aH m
' ountn h me t he o men at mn anJ non hern lihWe bland P"" '[
precs sen u es Jm 'h g h ,,u ,stau l:na ! has 1 rh ! % 1;f lif nt h IJ! t j 't. ra -
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- 1. astern 1.Jhon Com. to t he u h uaan i uu om.-. r non. i man hia t..n e _
I in t ru unhtv subudu-D '"I P'"' " O"' " " " ' "" " " " d d ' " # n w ht Jak J tar op-ranon nn serke a phclanon s m lan 10"I alout 'lf OHO u m an area
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of .dwiut M s< ju. art mdes i i 31 norp insestnient tinn of bns kn >n an i 11% anJ its subudu- i l'A Pow er Corp 4 *rahon ( orporanon sa ks out l.all R n t r and .,O m r-oc , an: know n o J!u t ntly n a 9 ,e 11.nnNun b.n J roundmc tow ns m south q.u ht ., m;t. ..cm rat mn astheiiA. M stem u g ,, ,1c p,w t r . orpor a .
tauern Maswhux tn n ! n a.cp w k m p m er u4>n w hu h ow in 12 l' 4 , g New port Iln t rK Corpo- ut t hs- 5a b r .= . w% _
rat te sn pr+ .s u h dn til, fu;her t 3iv r a ; [ .ia';
u n a t o a b. .u t U O4 ( *n i s h i ', &l i I A 5ers n e torpora-c uston,en m the t uan al 1 ! 3 Pom r th:J a s oh:u n non pn.s e pn ansmna!
Ei ha h- IslanJ t on mo:n. pti u mn ter r. ri e e n ,n ma u < % duninto i n 4 of New p a t , ja u i ud r i bapu r !I tth I am m l'tihn:s Ms i
' s n. MiJJi> t'w t an 1 uh r.d h mi- n:t n s ( os al .:!! 113 sss m Por t u nou t h w I n ,r n, c h i 13 u anp um.s
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, 3 FIN ANCI AL HIGHLIG HT S Prnro lif w l'inant bi l)ata r./4// sri r= #+n ,4 Ojwr.iting Revenues $ e51,h6' $ 10s . U ~
Operating Irit orne 55,385 SK WS Consolidated Net (Inso income il30,I82x2n io. s" Cash Construt tion !!x}'cnditures 59,929 75, % l Comnion Shart 1) ara Consohdated t!.oss) Earninp per $h. ire St S.1 X M 2) 52 %
lhvidends Paid per Share $2. s 7 5 $2 Us Astrage Cominun Shares OurTtatidmg I5,917.2 % 13,8 " .(0 l ikk Vahte per Share (Year i nd) 514.52 0) $2L5" Mark.t Prac iYear End) 523 r 5 $ 11 ~s Operating Data Total Elettrw Salo (ruwh> 5,3 t oJxxi 5 l ' .t h io System Requirtmems (mw h) 4 iss,tHlo i . W6.ooo System Peak Ikmand (mw) N 50( b x41 System Reserse Margin ( At Peak) a r< 26 ~
Systern 1.oad Fator 66. P , no -i' f
CostommoYm Enal 2xS,i,so 2soto2 Employees (Year 1:nd > I,\SS 1,2 i 1
, i e Isiv v;as::v; :.n u ? % ,r .c I t, n .1,. + .ur ' L t o m .o lI i A h e ,:. , V.v. J, m ,, w Anu t n 19 m l l i ;\fis t s k " hl.d :i n n ?% f s' 4. . a't ?t % ,
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- 1 in, is s 5.2.ldi: < *..: hrs : +e e r % > h s. .\
h m "..o * .\.l,1!!) vr l 4 0.0 r !*'iI~*nv v ro s l8 f!h e : n 'm " .i h N i> In,imie n ~ Mu m.i:- h 1 i , .\\ W i u . <,- r ni l,i, mo.,i s o n u c.i u,1:i nr %u r , :a . i 2 .
TO OUR SHAREHOLDERS 2 or i nu rn 17tihnes Am utcs, lo in was a scar nutkol w nh some mano thviv juiintmems, but not w nhout as sturc et suu nsts Donne the hrst three months ut 1991, your nurugum nt made some s crv ihtta uh dn ismns I hese dn nions hne sig-miiuuuly ann tnl our resuhs tiir 1000 and also unpat u J out uansu mn to the future.
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x.i Among thi Jnap;%ntna nn w t re the hhng m l'ebruar3 Pr>lbyourIl'A
~ .I y .. y g '[ PoM r silbsnjhtry h >r jiretu Ibin inider ( .hapter 11 id ilic I nh ral li,uirujitt )
Cmic the albt mnal t hary , to P>90 tarmnes wIm h were pumardy the y ,, result of out 1.l % Pmu im est, ncot , dm announu ment tlut e c w ould not g g rentw out outstandmg u na r < th rs f or lin hburg Gas A 1 In tuc laght (om.
@ ' ,+. s, p.my . uni U NI I 11, Corpuration and i he p neral n ononuc dow nt orn u hn h hs wp i~ ab has ot curred m our st rut c ten nor,es ( >n t he sui ms ude w c w oc abic to
- - 6; y l ,$ 4 {\1J a dn l& nd hir (kle t)21hi i finset utist \ cal, b< alif t hk biat m!) Inn.ame a y
,3 Trallt); we nude stytitbt ant jut' ,Lss m <iur c!hif ts too The rapid da hur m tht reg ion's Otj *nonni lit altb w hh h took plat c M f) tare m t hf Vcar, had a EIn t unphi on ddnJnJ tor t la tricity and inunpra d our chorn io market iht 110 nu gaw ans of( apat u s hom Scabnok We base not been ab!c to funi boycts w dhne to t onmut to long term t apai -
ny tontrat ts thcrttute a n nn esurv to xil t nt rgv on a short-a rm hasn at pru es w hich Jo not allow us to setou r aH our < osts nu lu.hng out rnt on ountan&ng & b:
As a restJt, ITA Pow cr filed on h bruan 28 UNI, a w!untar) pt r a mn for pn ou -
tion ander Ch ipter ll ot the t tnin d ' states Bankrupu s (.o lc Aher un ful an th sk wm, and m hght ut the rapnil) & t lining n onon,v, w e u>m luJnl that thn at non
,i w as t", the best Internt or ad ( o!n ( rned \% w dl at n mpt to u of k t.losclv
.- . a : cj w nh the hviden or mA Powcr's omus m an i non ro acuion a pian that u di aHow lit M Power to ancrgc nom bankrupa > on a rinam unv Wabic basn l1M Power w di abo wnnnue ro punuc the signuu oflong term pmu r i 1 k 0 6nt rat t s at jirh rs 5ulI!i lrnt ri? ra tis ci it s lla ntinent . I biw ever, t he regnois connnuni c onomu thunp oaph d w nh neu . oui untested tudJmg rnpurc-ment s tot pow cr mmre r , w hn h are bcmg unplemcoud 1 y wrious uninv I' -nmm . ns - n n _ p m n m n.
-4 h s unportam to note t hat the t .hapu r U hium b3 1 l 3 Power don noi John R. Semns and w iH not unpA t the finant ul inuln or our ot het t ore and n in a on_
subsnhanes Additional Charges to 19901:arnings:
()n Man b ."t P>ul. we announ cJ that we w ould take an adJa m ial m r t .n ,
tharce to 1990 carnings et appn mun h 5 I m nulhon w hu h resuhui m a ims for UNu or approxunately 5140 mdhon, or M is p r shan Thn hiss (ompans to carc insi }M.'r as trac' L(irnW()it sIlarc It $ 2 'l5 to l*6I. 'llr as titi!I w as rab it til [idItt til if u s cry ret t nt aild M ?ntIn allt d1ll(W in !!v- I ^m if ni l,+ t in t ri. liv i i Nt w I !Qialp!, }w on: ct r.un out lo4a f or ! l A Pou cr i>hunung hapu rm pou, r s em rm n m t he unm4
.u t h i 1 . ecabic f uron aaJ l 1:A Pa rri( hap'cr li hhn lli a. lt!l t l' H), 1$13 kb wi r w ill kic th i s 4dniart d (:4 rif atu ia! n jkqIittu }hj(jw N -
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riius I i Ws ( urn nt i f uture mum ul n - ah s w di n,e oc unpx n a bt l l :A Pou t r A sm h um< as ll!A F wer cua rm tr; m bankrupo , n w1 MHn < oohdat-d a a
!!!! ct s !!W t 1, t it lid i nC t tit t ria l,!f ( ot h d h !af liin
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Approximately $ 126 milhon of the additional (harge to earnings relates directly to a w tire-ntf of our elm Power inv2stment, about $ 17 milhon relates to potential tax
- liabilities of this w rite-otl, and he remainder relates primardy to a w nte-otiot expenses related to our tender oilers Given the tats that are known n Jay we believe ilut by w rinng-off out imestment in EllA Power m this manner, we base protened our sh uthoklers from any further adverse effects w hic h may resuh f rom the bankruptcy. The w ritts(t has the eftu t of providing for out tinantial obligations to i 1% Powet.
Fitchburg/UNITil. Tender Offers:
On March 29, 1991, we also announied that we would not extend our tender utsers fur I itt hburg Gas and 1:lectric 1.ight Company and l'NITlh Corporanon beyond thcir expiration da:e, April 2n.1991, and that it was highly improbable that the mnditions to cither of the oilers would be satished by that date. The additional i harge to 1990 tarnings discussed above also in(ludes a w nte-otf of expenses related to the tender ol[ers.
Economic Dow nturn:
As with mest busmesses in the Northeast, our 1990 results wtre knured by the year's emnomic dowmurn, parncularly ury late in the Star The declining economy and continuing temperate weather ton (htions resuhed in a dechne m kdowatt. hour i
s des as wmpared to 19H9. Sales to resulennal and mmmeraal(ustomers decreased shyhtly last year, ly and OJ'; respetrisel 3, w hile sales to mJustnal customers declined by 610. Overall kilowatt-hour s. des declined by 12"; . Thn mmpares with increases m the VH'; tange tot the nast few ye.us.
Dis idends:
Based upon mnditions as thev existed durmy the first part of 1990. your dividend was kiRrea$cd last Mas to an annual rate of $160 per mmmon share. At that tune, ue were (on6 dent that mmmertial operation of Seabrook was imminent and that we woulJ be able to sign long-term power sales contracts for 1:t% Power s Seabrook inter-est. We now know that while Seabrook dal indeed come on-line, the severe and swift emnomic downturn led us to !Uc a Chapter 11 pros cedmg for i la Power and to uitimately take an additional charge to 1990 earnings.
We are sure that you are conterned about El%'s abihty to motmue to par disidends in the future. What we can tell you at this point is that the additional tharge to 1990 earnings resuhed m a Comolidated Retained Larnings de6 cit of approximately A million. As a result oIthe retained tarnings deIh it, we have filed a request with the Secunties and ISchange Comnussion under the Pubhc Unhty l{olding Lompany Act for permission to continue paying mmmon share dis idends. We requested expethted cOnsidtrJoon of this request so that we could ttensiiler payitig a disidend on May M, the next normal pay ment date Although we rannot preda t the (mung or suuess of our upphcation, we believe that the SI C shouh: grant our request bt cause of the strong ush flow generated by the b, dante of the El% System it is aho clear that a wdl be necessary to redote the current lesel of l'UAi dnidend payments, althouch a new lesel cannot be estabbshed untd the SI C has nsue d their approval to pay a dnidend.
Seabrook Station Goes On-l.me:
After a 13) ear struggle, Seabnek Stanon bname a reality on Aueou 19,1990 11 M's out ial role m makmg the on ranon of :,eabrook a reala) has not gone untuu eJ In the words of one rest arch unesonent anah st "I astem l'nhoes' rnanage-ment has leen among the mon m,trumemal among the Seahnnk ow acrship m the strugcle to clear the operanng hitose for the taahti oser t he past rive years. Thn mdit ates the i ompanv's tenat ity and resoke-
lluel Disersity:
We b.ne taken (letisne steps sinte the 1970s to n Jtu e our depernience on oil usal to
' generate elet trkity. We w di tor,tinne m tlut dirntmo ni the twas. Noticar energy -
as tcpre3rna d by Seabrook - and gas - as in Os t an 5 tate Pow tr an two itnjurtant non-od suun n et generation We nu nased our hn! roc!n trk upahibi> last p ar, as well, through the Phase !! apa ement w ith Iinlro Qut bn As 1900 ended, 4S% oiour pencration was lucini bs od, Icw than halt the 8 G st supphed in 1980. Nu(Icar cru rgy, w hkh p:osided l'b , of our cln trk try ten years ago, tuatthcd oil \ W in 1990; we now burn mal to lutl 22W of our generation and natural gas for 29 lh 1995, we proies.t oil uill supply aluut 11' < of our gener,it mp, nenis, (oal, 21' , ,
nut lear, iP7 ; gas, 28 7 'I he balata c w di wrm trum a s ombination of by dropow( r, and sus h non traditiori,d soones as cupent ration and mJepenJent power produc ers.
Core and Non-Core ilusmesses I spand:
Newport I ht trh Cot porat ton oltu ially poined the 11UA Sptem on Matt h 2' 1990.
- 1. astern Utdities bis been weh-ru cn ed 13 New port s t ustomers as we nupitment measures to itnprose the n habdity of their clo rtu a rs a c. The dedaated cmplo)ces of Newport lilu ttu have also been a positive addition to our outstandm;: work forte.
The 255 megawati Unit I of ihr pas-turJ n can 5 tate juwer plant went on-hne as st hedukd and w ithm budget ni lan 1990. ( onstrui non 01 a wmparable surd Unit 11 wntitiucs within budget for wmpknon m lau 1991.1:UA s M npdty mvestna nt m
( A can 5 tate should proside a prcnuum return to our shan holders, w hile at the same time, f urther dnersit) mg our energy nux awa) trom t'oreign oil.
()ur I;UA Copenex subudiary iontmucs to un trase us marribution to our bortom linc ( ogenes now hsts among us energy management t uuomers a thscrst nux 01 maior wt porations, ut ditin and (onunumt ics itorn wast to t oast.
l.ooking Ahead:
The 3 car 1990 was ddfu uh and the scar abrad w di not bc casy, as a a unhkcly that t he region's m etall n onotuh condinon w di unprme m 1"91. As a resub , kdowan -
hour sale arc (spn red to bc lower t han m 1990 Thne (onihuons har rniuncJ us to impk ment stringent wst watrol measures musistent w uh ufcty and rehable sen hes throughout our 5ptem. Not u ithstandmp t hese at tions, it n hkcly t h.d we will u tk rate uu rcasts in most pirntht nous to wunter < o,t nu rcases and da hmng kdowan-hour sales Our main ob itt tn e m 1o91 is to put to place the tramework nu esury for inovim: forw anl.
- i. aster n Iinhtin and our team of valut d cinpic3r , w ill be t hallcof:cd m 1991 We are workmg shhvently to & al w nh t bese thallenges m a was t hat will build the founda-non tot tuture sue a ss. _i Sunercly,
) J k G m. add }L l M d n ~ N l)onald G . Pardus lohn R $n sens Chairman Pasidem Apol 12 1991 1
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I SELECTED CONSOLID AT ED FIN ANCI AL D AT A wr> u.i. A tw+r it tie lbwed hap Cw:n-e 'ki.:ru s e.l h,r hy A + en ) 1990 14x9 19SM 19S 1936 Income Staccment D.sta:
Operating Revenues $ i 51.h6' $ $ nt.148 5467.129 $ m, U-i Operating income si,\NS 6s, ws 65.212 6.'.195 61.725 Con.solidated Net 0.oss) Income ( l 40,1 Sh I > 60,8 " C,D5 1U K 42,190 Italance Sheet Data:
Plant in Scrvice 985,1;8 6s ',s ; ; n~1.192 6u U I o l 4. HO
_Construytlon Work in Progress 6,809 6'4.850 $ 55.H 11 I2 5,8 I M iSN,70S Gross Utihty Plant 991,9-C 1, W 2.< ,8 ; 1,207.000 1.ON.lF9 974.048
- Accumulated Depreciation anJ Amot t uat ion 211,12 h Jo ;. 990 1S',0 19 174,814 157 S13 Net Utihty Plant 7 so,H 19 1,1 Nm 1.019,957 vo w 'n s15,225 Total Awets 1,uh,7 60 1.,76.o u 1.202a 45 1.o' l .216 951,5:4 Capit ali2Jtiof U long-Term Dtbt i43 s95 606.o~9 55 i.% i l'u,21 - i?3,'xv Hedeernable Preferred Stos k 34,s30 s L612 44,61i 29,S52 29.552 Non-Redeemable Preferrtd Sua k Is,850 1s u'9 15.0w 15.o'9 15.079
-4 Conunon Equity 2 P,39; DS.ol6 WI,N9 285,4M; 22% 1 %
Total Capitahzation '41,368 1.0 40,"sh 906.010 809 5;l ov 4.8-'n Short-Term Deb 6 3.o' I sx.6'6 62.620 is.oi5 6 L iii ,
Common Share Data:
Consohdated (luss) Earnmgs Per Au rage Common Share:
liefore Cumulative Etiett ut Account m,;
Change $ (8.21) S 2 vs 5 2 s5 5 ; 46 5 2 H2 Cumulative Ettect ot' Atcountina Change for Intome Taxes -
s .04 Aftt r Cornularne Dicct of Acwunting Change 5 (8.18) .$ ' 'is i 2 85 5 s in 5 2.82 Average Nurnber ot' Shares Outstantbn;: Is,917,255 iS,s".ov! t i . W ,915 12 59n, a i 11.5 c,6"' _
Return on Astrage Cominon Equity (i2.5 n 12.15 12 8 1 " . l' 15.0 s Marktt Price- High 4l'> 11', 4 i' lo' i9'
- Low 20', ;o - 21 - . 24 20.
-Year End 23's li', il' JS iS' DIVidefd Pald lrer Dhare $ 2. s's 5 J i~s S 2 ;'5 s 2 2~ $ 2.15 il) 3 ::e rruen : rs < <
- a c, r- 1 e r 1- a; o <s e %%. ,\ %,n or. .h a ns, t I v t, ja lT n t [p upa la qi sm r e s: pat 0 l
M AN AG E M E N T'S DIS C U S SiO N AND w oh tlw om crtamn sm romMc Gr oeiw 'q '
AN ALYSIS OF F IN A NCI AL C ON D.T ION t 1 rA Pow eri( hapter 11 pnutMmg and In cnt AND RESULT S OF O PE R AllON S du hues m kwh salm, IKt t sut at;il t he i haryc to cat u-mgs at thn tunc Tins n non rnaltnl m the dnon (henicw sohdanon ot i l'A Pown f or f m.on ul a pomng Eetern l'tihtin Assautes (1 l %i repot tal a ( ousol.
idatal Net I oss of $ i so.2 nuthon, ut $s is po at r 14"17 < tin nu Deu mhet it,19o0.consn g ut t y, II M I"'" h" "" ul r esuh s should not lu m pa, ted age wmmon share, m IWO The prmupd renon w by Ll M Pow t r Ar sm h tune as I i % Powo emmes tht 1900 lon n a tounh quarto IWn ahn ta tlurec h"m banhopa t a wouhl be in unuhdan d it and in e umnss of S !C mdhon nlatno punanh io ainun aldnioiul tlutycs mmm the tall .unount u ""b d u ihcn on t a clu t neeria toi i onsoldo us
'I hr "hhoutui 1 harxes to P >ou c.u mngs .dso I l % nn est mna m I l A B >u r ( or ponu ion C 3 h I III d 'dW I att !$ct aitted I ari?in[s di(M It (d Po% t r) alid rt biti d flu t dite t au s tid alllt g aj gy t .g g -
apprmmurch 5 'S rnthon As a rnnh of th<
manly $ 16? 9 mdhon anJ an . atman s rac+n ot toamal cannrvs Jctu n, Fl3 he hini a n qunt approsmutt!) $ L 6 millum t Ian d ponura m i l M tenda o!ftrs for l'NITil ('orp 4,a nJ w n h r he N au u n s .nni im h. ec ( ononissnm i51 O
""du the 15h!n l'nhty llulJme ( omprov At t at (lINillll and I u, hburg Gas and I lo un la eht 19 n (ilaldmg ( nmpan A(i n b a ant honcanon m Cong.nn < l G&il PA u"u"b'n durc dn ulad h t brough li bruary 15 th tarc t he .nldinonal ( f urge, 19+1(Denoldncd IWJ l ( % !us ro;uestou < xpnhtml tonsul r inon of Nu hu ome would hne bu n S 17 5 m-Umn. or 5 ! n us rn pa st so that Ll % t uuld s onwh r pay me a de,i-1 er nerare mmmoa slun , t omparcJ u nh ( ms4_
datul Net imome of 5 60 9 nulhon, u O 9s p y "d "o Me h. (WI, t he m u nornul pq nn m dau Although nunap ownc 1 annot picJu c t he c mr atrap 1ununon sh.uc, m DBo, repunny a
- F ' " """ "*C "I ""' I" U n s t . w e bt h eu t lu t br du n au et O and (d , resh t nu h. The & t M Al ( . shouM g rant th" a npn u bu ause of ht snow m 1990 cunmps n prhnantv Sc n son a shun wnn
'"h 'L" being ytin ratcd bs the balano of the i l3 p< wt r sain bs El % Pown of us conth ment hum 51abn ok at pra t.s that were subuannally below us N '""' ^ * ' d""1"d It" I ' annu he cu abbsh< d unni tin 5L( has muni o s onk r, bm o n s h at ihu a< nul operanon, manuenans c and 1 apo abrhi a w dl bc n i cwan m n dus c the t unem lcul u
< ous along w n h t he t owanon of t he in uninn u IIA"""""shan doahod Allow ans e h>r i unds I%cJl)nnot( ouso m ei m
( Al!!!O t oms t&m w ah the ma n n e due m tw I I ^ P""r plant. O:ht t fat tors aui nuc p)on canuna p r J..e 1* n I l 3 Pa t t hlul a s ohne.ay
( "fehnun Jh wcre rhe chn rs of t he shanp;ng u unom3 mupiol P ' " " o m t hL l mu d 5un s Bank:up t s ( oart toi ..
w nh mimer w ratkr un kw h sain mi . o m, rc x m IC Ib t td I an)lb h4;t li rr rn ;r gJf)tg at uy; nh 5re rItXJ f wi > Ingllp y) 11; t }w a g g a,g g g g.t ilici i d ( g u t) und r ( hapn i il m ihe I % ti heimpn y (, ,&
mon sharn out sunihna.
"k h "it uptt s ( n k y 113 pow n n now opn anny ConsohdanJ No im orm m p+9 nanu j 5 4 i m huunc , e a , h !" m m - poss4 m m m uh-r prom t , m nnihon ut 9 l' trom PM and rarnne pt r m m
'" 'h" B mkturn s ( von an i w di ena mor m th ulop slure m 19W m1 rea ui V men C M m pm N Th" !79 macasc pun, m.dh n th < s adhoonal " $ " "' " ""t "" *" '"" " I " ' h " ' '" I d m i k u ' "
e, anne nom non- nh AH I n apple bic to 113 t " "a . hwu hanknen s on a inum ulb s ubie ben M cI li! '! I- 41 % d n ll:HI Hibic! ild lia :ik -
b)M cf s llw tietslg yi lit \ca lm , ! l;g 3, l, { ,; ; g; g( , ;}
salm o' c!n t oc n y ,md nc u i .n cs t han- J b , mr
" ~ i * ' # "' ' b' " " 'I" ' m h ;' tu rat ed h t he shor t -
" ' m M m po m t oi .aH+i?. cotu b mcor nom Massat huscus reud sub uhmy sur . Mm.n ; &; ;
d" N d oi" '. pmn r w di he anu% wm t o pay mn 1-lu I a p sanc unn < t on tow canm (0 m u s e mNan imf N nc . h .md % t i , < % nrcj Th< t harp taken k Li % mmu m my m g ',anc aoc on
" h' \C '"' h d' mn n m Ll% Powcr w e re taken m hyh' m u n, , e a1 3' t d i I-
- lI, Di i IId j'nNdi!N '
,ictut h .n c sif Pilh an' t lum: ,in{}wpqu ttg, ;gy,3, 7 3 ,. f g l
tiiaikt ! ((( M-w t,] g { j;) }. ]'j g j q, {pa y t kitru ny m New I r ei na ,long e p n 3 s g h t n dumans db o du, d 'non p i ss a la i .in th' (; e m< i s m in n ,in N a la ! a alb k Illi' !!!)[ 'a . ' i d g u t s a( i: l [. ; , . { f 33,, e ;
on? w Ine a !t tin 7 jn ju , , y ,,
n .- w -+- ..
tiu;k as a;l.d J - It> t i tr 'f ui i ! . l}n r (a , i,' i
- - - - - - _ - _ ___ _ _-- - _ _ _ _ _.___ _ _ ____ _7
e 1 term power saks contractiprint to that date are Deferrat of AFUDC minimal, in addition, management of El% has Commencing onJanuary 1,1988, EUA Power began
- decided not to provide additioo, t inals to EUA deferring ihe equity portion of Al UDC assodated -
- Power to etable it to nuke the intuest payment. with its invest ment in Seabnuk, as required by Since Unit rs wn menialin-servite date, EUA Financial Acwont:ng Standards lbrd Statement No Power has been sclhng eleuricity at rams substan. 90 (FAS 9th This deferral c ontinued in 1990 until tially lower than its actual operation, maintenant e the in-serute date of Seabrook Unit I at whit h time
, and capital related costs. Tlese short-tern sales, cou- EUA Power transferred its imestment in Seabrook pied w ith the cessanon of the acuual of Al UDC from wnstruction work in progress to plant m serv-
, resulting from the wmmencement of wmmercial he While the deterral resulted ,n a reduttion in operation of Unit 1, have had a substantial negative earnings of approximattiy $ 187 nulhon in 1990,
- impact on the EUA Systenis net earnings for 1990, $24.9 nullion for 1989 and $ 19ei million for 19S8,
- g. For the period August 19,1990, (nrough December ;t had no impact on our cash earmngs. The rewisal of 31, 1990, actual operating wsts, induding in:erest any deferred Al UDC for EUA Pown wdl be linked and depreciation expenses, exceded rn:enues from to the abi'ity of EUA Power to enter into long-term short-term power sales by $2M milhon on a pre tax power motracts at prices sufhdent to atosu its total basis. At current snarket prices, EUA Power will still intesonent.
be selling power below its cost. However, as a resuh of the deConsolidation of EUA power, fututt+ losses Nate Case AuiVit) should no longer impau EUA's financul resuks. New wholesale rates authorized thr Montaup liy the Whde operatmg in Chapter 11, EUA Power _ Federa' Energy Regulatocy Commission (i ERC) intends, with the approval of the Bankruptcy Court, peruutted us to begin earmng a tash return on the to wntinue making payments ofits ongoing obhga. balante of Montaupi Scabrmk msestment when tions under the Seabrmk Joint Owaership Agreement Scabnuk entend wmmeraal sen he in August.
(theJOA) to the extent its cash flow permits. EUA The rates were initiated august 19,1990, subica ibwer wdl attempt to arrange a debtor in-possesuon to refund, per. ding tinal adjudnation of Montaup's fmandng fxility to enable it to fund working capital rate apphcation.1 ERC has approved :a settlement requirements and operating expenses induding its agreement cmering all aspects of the 520 milhon obligations under theJOA. Ilowever, at this time, rate increase, extept questions of the prudenty of EUA Puwer has been unsuuessful in arrangmg such a Montaup's Seabrook investment. Iining3 on he fuurxing fadiity. Any imandng faohty would also prudency portion of the rate case are cxpeued to require the approval of the liankruptcy Court and the commente in Juc 1991 SEC under the Ilolding Company Au. The emnomic det hue m our sen he territones ,
w hit h has resuhed in a sigmth aut det rease in
. demand, has led us to seek additional rate reher from FERC by tiling new wholesale ratesfor Montaup in Manh 1991, New retail rates took ef feu at tilackstone Valle3 -
Eleura in mill 990. This marked the frtst tune we were ab!c to negotiate a settlemem m a Rhale Island rate case without the neco to awatt hdl adjudnaoon, tinabikof uN TO kmp!cment tww rat ~s three roonths
- urber than wouhl otherwise have ! wen possibic E
e
The tste idow st t fore 5 cuimates of s he f at tors demonstratul by the S.l t ; and 28. 2"; iin teaws m whkh wused Operating hvmues to change durmg kw h odes to our ounmertial t ustomus and our umt the last t ao gus matra t saks, respeuivek in the scars prmr to l% wsfibtua! }()Q(), de;panj [gir r{p([gg jty hv clafonlus 11[t1Ur n ~: n w retalk su Dl karles t[ pita lK k llt Itt(brt es e i LltllIf 8 $ m e -! w 19'N I l' N hot summer (nonths. onl) to see higher peak dt mand Operatirw Reecnuc c hans" tk tollow ing w mter Mild we.u ha condmons lau m obur M et" ga mmed widi die sluneng cwmmy o> danen h'uypmt /uuwsuion 5 40a $ dmw pas, no rewrd w as wn LlB Power Sales to.s The tale below wu fordi de p n mt (hm-s m htwor of fod ( osts (l 2 ttu kwh sales by 5 Ins ofbuomu', eWud% dune W IMttt of Mac Liunres 9+ oa New port anJ l tM Pown for the last iwo scan.
Punkned Pown Cost 7 J , , n,,,
/
- I* L nd 2siment Cl uaeWPCA) 10.1 1LS 5' MO IVM ksth Sales t 4 0.!)
lItut Conf f acts, & 3) 45 Nesidult tal (l 3Ii It U Nor -!]ectra 10.3 is Commen ta! 01 3 \l Tor,tl sn3 $ ; 1. -i Indust nal to.1) it4 Other ( L 5) L2 The Newivtt aulutsnwn rtfitets the int lusion Total ytem Requacmenn C 1.5 of New porti opuanns resuhs as of April 1,1990 Unit Contraus H2aa 3.'
Op, raing revenue f rom El!A Power retic < t s short- Bral 1:nrrg) Sales (n. US 4m term pow er salet of its share of Seabrooki pow er out-put sin <e i ommerdal operanon becaa on August lo. I spenws 1990. As picuously noted, revenues at EUA Power The L L' A 53 stem's most upmfu ant expenw arms are not sutta n.nt to recmcr its tosts wntmue to be tuel and pun hax d pow er wus, w hah The revenues attnbutable to tuel msts are the s ombmed tompnscJ .dmut IS ? and5495 of result of the retmery of sut h costs through the opera- total operanng expenses for 1990 and P>S9, resptc-non of f uel aJiust ment clar The t hange in sut h u.ely . l'ucl expenw for 1990 det reawd 5 i S milhon restnues retica wrrespond j undedymg ih.inges m or -L SS from 19x9, despue the un lusion oi 5 4 ~
fue!t(bI$ Intllion (1! IUel c Aperne asM lated w Ich i I A b8w el s The 1990 etiett of rate thanges .edcas haa rate share of Scabn>ok anJ so ; milhon of tuti expenw matases for Blackstone and Montaap ettecuse m n< urred bs Newpon suu e Apal 1.1990. The mer-lune 1990 and August 1990, respeenvely The etteu all dn hoe m tut I expense n prmanly the result of of rate changes for 19S9 n asm i.ned v nh an Eastan the im reawd use of less expensn e noch ar tuel and lahson r ate matase, w hnh bet ame ettenn e in lom t kw h sales Fuel espense for 19S9 im reawd January 1989 S t i nulhon or 3. F, m a loss, prunara as a The reunue attnhutable to PP( A m the table resuir ut lugher oil prn es esperienced dunng 10S9
-tv,e redeus Blat kuonei and Lauun l dnoni remv- [n pjon purthased power den;'nd wqs un reawd try at M ataup's porthan d uw l a t apat it y wst' $91 milhon or 10 E over 1989 Ofihn mucase, through the operanon of t5 tr PPCA tlauws- g ;o S nulhon n the result of Newport s pun hawd in 1990. kwh sales onla tra ity m our Massachu- pow er-demand < ou s supphed hs souru s ut her than serts and Rhode Isla,d scrute terntones det hoed Montauo sua e Aprd I,1990 Thn im rcaw was ott-2 and total kda art-hour sales m 1990 dn reawd su !n a & t rease m 1900 pun based pow er msts et by h K trom t hme ut 19S9 t u luihng El'A Power's blu Lstone and I astern Edon .n a resuk ot expenws shon-term sales a c Seabrook's m-servue date and a wnled m U)S9 am ured w nh a pun based powu New port s total retad sales sm4 e Apnl 1,1990. 'I hh upx a3 aJmsonent < lauw sun harge part ully other d, rea se is due to the region s shunpmg emnomy and bs an mt reaw ni Montanp s 1990 pun hasul power titiusudlV nUhb rJte weather The u inter iin4nths w cr( ex;, cines atit 11, ilie limta r duin h ,w 31 iit M(eit au[6 enusu.div warm, wirh hearmg decree days below s.omerwt l'mts f or v heduled m unn n on e m 1990 m both nonna! and the 1999 level hs abom (Y Iinw- wmp.aed t o U.69. dung w u h aihuonal purduw d es ec o en w ah a w uther wn et non tauor"d huo t he power < nnt ra ts m tifu t m pro Port hawd power oh ulanon, sales &t hm J u ~ m 1990 K u h sa h s demand wsrs na rentJ $ Jo s nulhon m 1989 mer mt reased m 19S9 prunan!v n a result of wnt mued 9 .
, ;p > _.,
l%.
+ , s=
i 1988; primarily because of additional port hasco Interest on long-term debt decreased $2.6 million required as a result of higher system net rJquire. in 1990 from 1989 primarily as the.tesuh of EUAL mehrs due to the increased kwh sales nientioned Power's payrrent ofinterest on its 17 M Series B
- above, additional purchases required under new pur, and Series C Secured Notes in cash during 1990 in
. chased power contracts in effcct in 1989 that were lieu of the issuance of 17 m Series C Secured Notes p" >
- not in cf fea in 1988, and two geherating units being (see Note 11-EUA Power Corporation for further out of service for scheduled annual maintenance for detailsk The decrease was partially offset by inacases two months in 1989 in Blackstone's long-ter m debt interest due to a full Other operating and maintenance expenses year's effect ofits $ 15 million 9YI Series 11 First
- 7 ,
increased by $31.9 million in 1990. This increase Mortgage llor.ds issued in September 1989 and to an s y- is piimarily due to the inclusion of Newport's other increase in Cogenex's long-term interest due to its g[' operating and maintenance expenses of $67 million $35 millimi 10.569 Unsecured Note issuance in y sint its aujuisition and additional expenses incurred June 1990 ahing with the impaa of Newportsdebt W . by EUA lbwu and Montaup resulting imm the com- obligations. long-term debt interest increased $7.8 mercial operation of Seabrook Unit i ei 58.2 million milhon m 1989 over 1988 primarily as a result of
, and $ 1.6 million, respectively. Aho contributing to EUA Power's payment ofinterest on its 17WJ Series ,
the 1990 increase were (n additional amo riution of B Secured Notes uith the hsuance of 17 NY Series C previously deferred costs by Blackstone and Montaup, Secured Notes instead of cash.
which are being recovered through rates, (ii) conser- Other Interest Expeme deaeased $ i.0 millon in sation and load management costs of Montaup whose 1990 from 1989 and increased $$ ? mdlion in 1989 recovery commencel in 1990 with the implementa- over 1988. These t hanges are due to the interest
< tion ofits rate inuease, and (iii) mcreased mainte- accrued in 19S9 with respect to the potential tax dis-
__ nance expense in connection with Montaujis Somerset allowance of the Seabmok Unit 2 abandomuent loss generating units shutdown as indicaed above. The (see Note K-Commitmems and Contingencies for
.1989 increase in other operating and maintenance - further detads) along w ith higher rates and levels of expenses tefleas increased amortization of prior short-term debt in 19S9.
. -deferred amounts by our Eastern Edison subsidiary, Intbrion tuntinues to have an impact on the opera-recovery of which commenced with the implementa- tion of our System At the Federal Inel, wholesale tion of Eastern Ecison's 1989 rate increase. Also rate-makmg pracoces pertmt a lotward looking test atiecting both yea iin(reases were increased operat- period wh'ch enables us to anocipate inflatmnary ing costs resulting from EUA Copenex's growing mc reases, The traditional use of an hismrical test.
business aaivity ahyng w ith the effeas ofinHation period for retail rate-making purpmes at the state on labor, materials and other costs. level does not proside us this opportunity.
- AFUIX: represents a non-cash element ofincome The significant decrease in AFUDC of $29.8 million Financial Condition s - was predominantly due to the cessation of the record- The EUA System's need for permanent capital is -
ing of AFUDC related to our Seabmok Unit 1 invest. primarily related to the construaion of facilities ments w hich were transferred to plant in service by required to meer the needs of its existing customers EUA Power and Montaup upon the plant emering and to meer the future cequirements of these custom-commercial operation on August 19,1990. Also ers as well as new cusmmers. For 1990,1989 and
, affecting the decrease was a lower AFUDC debt ratt -1988, the EUA System's cash construction expendi-
'L ' s titilized by EUA Power in 1990. AFUDC mereased tures were $59.9 nd!! ion, $75.9 nullion and $60
', $21S million in 1989 compared to 1988 primanly milhon, respectiuly. Of these amounts $93 mdlion.
v ,as a result of an increase in the AFUDC debt rate $26.9 million; and $29 5 milhon, respectively, relare for EUA Power (the portmn of AFUDC rhat was to cash comtruc tion expenditures on 5eabrook.
= not deferred under FAS 90), the base to which the The System expects cash construction expenditures -
1 AFUDC rate was app!ied, and to a lesser extent, the (culuding EUA Powco to be about $55a million in -
. reversal of a porthin of Montaup's acierred i A5 90 1991, which ini ludes $23.l milhon of estimated con-AFU DC. struaion expenditures by LUA Cogenex. Cash con-Depreciation and amortizanon expense mi reased struaion expendireces for 1992,199 5 and 199 i are
'by $ IL6 milhon or 4199 m 1990 over 19R9. Thh - estimartd to be approximately $51,0, $--iO.6 and
- increase resuhed from the inclusion of our EUA SJil 1 nalhon, respet tisch Approxirnately i20 of Power and Montaup Seabn,ok investments in plant in the proicaed mmeruuion expenditures relate to service, the athhtion ot Newport's imd assets and an EUA Cogenet inucae.c in depreaable plant of EUA Copenex.
in
_ --_-------y,,- - - - - , - - - - - - - - - - - , - - , - - - -
4 -y k . .
mt nts not met with internall> gencratul tun,k air i 1%i unest ment in i I % Pow or un lades amounts t ustoman13 obtamal through short-term bonow me luvabic by 1:l % pursu.ua to us guarantn . As a resuh w hn h are ulunutely funded wah permatu nt t apual of the ( hapter 11 hhng I l% hmci n in Jctauh
! l M Sptrm < ompanws m.untam short-ierm han of utuict ihe t erms or ihe lik . and r he mdent ure on he t redit w ah unous hanL aggregatmg approuman lv Su utol Notes.
$ 12 5.000.000. At t h unber ;l,1990. unused lil 3 rn enal prourds of S 15 5 imlhon f rom t he short-n rm lines of ard a .unou rned to approxon.ucly moan,e of 550, F11 l!A wmmon shm s pnmanly
$6h?29,000 In lWO mttrruil) p nu u ni t'un is to eur Ib nh-od Knm ntna nt Plan. Thnc prm uds
.uadable .dter the juy nient of J n nicads annona d t o w ne ou d io rcpas shon-n rm debt and to make a ditkit n! 5 I to mdhon 121udmg i 13 lbu t's mu st m< nt s m or hens to subsnhan wnqumn and In90 cash mu n st pay nwna e the Nmes. uncou!iy f or i du r wr;or.ut purposn i nully. i UA muni gent rared f unds .n at bble at ter r ht papm nt of th u. s 60.000 wnunun sharn m cu banyt for a!! the out dends atuountnl to S B o nulhon or ss t of tiu st..nJ mg iomnuin stm k of New port . The tot al Sprenn t ash mnstru< t mn rupurement in 19w. rcmrdul unnt mera of tlus uana non, un ludmg inu rnaH3 n nt ratni fu nds amounted to $ U ? md- hrs to il o mdhan. amounin! to $ U).5 mdhun lb)n, (4r -) 5. 2'~ Ak tinC l di L onNt okt E dl in a Jit nin ri. t t iist rtn t u ii ex}x rulit ures, ;>rii-rn purntu nw io to! ropmemenn for stin duh d smL my tunJ p n' 1:13 npu ts dut 1.l a Power s ( lupter 11 idnu ments arni ruk mpoons of su urmes nu ludmg I A w d! not iuu an aJu ne irnpas t on t he tuunual wn Powen m l991.1992 IW; and Ur> i an 52 s unb Dionorin nJay of clw baluu t of tla 5 3su m hm i- hon. 518 ' mdhon. 5 W w onlimn and 5 n9 nulhon, naut venuatul tmub or rhe I l % brem mmp um, snpt t t n d s 3.h u h nu lul t h * *t4 n nt! h nut (cu luJme El % Power) are opu in! to supph. m hon and 5 a nulhon of 1 en rn I shson ik bt m 1992 en ess or 100 ut !O91 t 3r hnat c ' < ash u nu rut i mn .uu! IW L rnpa o u ly rntu auncms. (.ont irmul crow th at i L % ( Arm t and I l% ( A can han\ o%yat mn to tund us n;un > b spu u non s t onunn mora relatiny t o ( WP I int / up< m u s s ump!c- ( la Man h .' l'M) I l 3 (tunpk tol the at qunt non, w di reqmrc siaue esternal hnans my llow cu r. te,: W Ne wi n t 1.hi n n () a sua t ssf ul pun hau.
those wmpana s hac wucht, anJ rn cnui. rtxth demonuran d how otn n-nt h som h an aupusmon t an tory appnn at m nu t cec th( a tm.na mg aut h,,n u m taic pla,e w ht n all p.u nn aern that it w dl !wm ht f und sot h i onomta r tit 3 :he harch. hts, t uuonu ts (mp!m osand mnunu.
In 1940, t he N srar: < emph it J t> >ur p rnnuu nt 'm ws u ru J by hm h o u n p.u un A! out ux aal onc.
imant mp. In June, I (3 Cogno nsued 5 6 noihou hab months pa*I l < t w een ucmne of a pun ba se and ot 10. W u nsa urcJ noms. t h< pro, t cd s of u h n o s. des acrecon ut and the tmali louny. miluJme ah wot un d to repay shon-u un Jt h in Nou mbu. requm d shart hohicr anJ regubron approuk in t he our blat Lstom VaHe> I la i nt subi han munl 5 lH month, sun c w c hn e < ora can areo on sus ef ulh nulhon of 10. W .5c r e s ( Fu u E n gace Bon h mtegraune New mn i lo in< s ornanons nuo t he i
t of )t!}i.I. billh!$ tra WI [!U C 1M lik k s M erC tls ik f(3 k k N N af etil oln! j'r54 It!1tly bCw l M rt\ !.IhNIlus inktm Bb< kunoc , I i 4 :sc r u A liru Wouace tonu r u n h t he n habh t h i t r a scn n e, as su H a . t he B6 mds - In t h t cmber. ou r Imn r n l Jm m mbmha n ot her < > munun ny ".orm J -en n t s a w hn h
- us inuni sin anthon i 51oimm h nu N on Juc m * ' nco vi our ot hs r tenul t olo a s at e as tusu ncd pMJ and Ur n at uden-v rmo ramu n in an b ' Nw pi n t th ttusun: ( n o m:n n unmual m 10925 Thortuni.mrt m i ti > rct , i a!! sio -t r - 1 s ral u n s h s tot s < >nunun t n ar( all on nhuuh term Jcbt 'd L. m rn ILJiv u and us w h; >ily ow ni i m Nmna ', Itu u s uneic lan: ut ustonut n the submibr). Entaup l im tru ( an pu n- In our but I s Nns oc h r t u m men m iw h Ihe tan.cd New in u os me ot' l u99 1( 3 h w cr b.o r owi 3 21 nulb , t po onoromsand!!n h v m N w pon ( asun su m s o me non w nh tht ruame d varum rm . .a m th ~1m m l Ld! s d I w t u mpt Nh i Wasn I bp d Imdm R o r m Bo ,* InAprd N9 1131 mo uncn co i p :an iash bs the halustn d IM ti ynni M rh4rn,,'tbt 5t m n!,Fe r r th- um h=1h is et I t al mi of N w Ilan i d u n. I'hr ptstei a < .f t h D. mc I ',! ! !! (fo \ b :h ."). >' ' t ht %s 1 i o m nlon w ht h arc s o !O unc i .de unh m II A P- 6 1 duo,( + .un i . +h .kmme Pow er f. r t 4c n ! t m . ; wu 42 rul m i m: 4m r pin t . ,
< l NFl U n;}1A& e mui d nonwnhq uhh.! ohJw m h ie ~d t1 ihm i s t i .
- m o n! *rs!rdas t, m pa -i k .k A I!.i ! t r ,t!!!( ; !'l 3 lb J a.ii' ;-l!(; A's ts 1 [h {r f (
Lcm r t : (m h .!!n m t i > fu m ia t t h<
n _
, ,. a . . . - -
. - - . - ~ ._. - , . ~
l'UA Cogenex.. Fuel Diu rsit y
.The performance of EUA Copenex, our energy (nan. EUA has t.iken steps sinte the 1970s to redute in agement subsidiary, mntinues to demonst rne that - dependerne on oil med to generate clearkity. We our sksision to diversify into an energy-related lssi- w dl wntinue in that ditcoion in the 1990s. Nudear ness where we have expertise was wrreu. In 1990, energy-as represented by Seabnuk-and pas- as in bod CoperkX btTarne (be IcJding energy tDanagre (hean biate lhwer-are tWo in1portant flori-oll
' rnent wmpany fbr cities and towns in Massachusetts, soun es of generation. We inacased our hydroclu tric
, with wntracts to hdp 20 iridividual municipalities capability last year, as well.
reduce their annual dectrical requirenients by some The mmmercial stat top of the Seabrook not leer 23 mil. lion kdowart-hours, KencraMng station in August markbl the suuessful
- The list ofeommercial. edo(ational, and health cuinunation of a 17-year effort to get the 1,150-mega-
. care faiilities with energy use managed by EUA watt generatmg unit built, Ucemed and operating-Copenex continues to read hke a sm ial regnrer of an effbtt in winth LUA pla d a crucial role.
major firms. Clients added during 1990 indade The Seabrook annually displaces the need to burn First Church of Chrim Scientist; Panasonic; ATAT; 113 million barn h of oil at New England generating
- - Polaroid; Kowes Wharf on llostoni waterfront; the stations while pronding enough safe, aliable energy Vmtage Club in Pahn Springs, California; Trammel for one nullion New England homes, The 289,000 Crow Real Estre in Dallat customers of Blatkstone Wiley ElectrL Newport EUA Cogenex added $ Li nullion t, the EUA Sys. Eles tric and Eastern 1:dimo are entitled to 2.9'T of remi 1990 canings. Thi, w as more than double its Seabrooki output through Montaugh ownership 1989 resuhs, and the outlook continues tbr esen interest in %eabrook.
greater watributions in the mmiitg yeart Phase 11 of the New England Power Pooli energy agreement wuh ilplro Queben entered parnal servkt
. Ocean State Power during the year Full seruce is antiopated m mid-Umt 1 of the ne ural gas-tired Otran State Power 1991. EUA bc nefits from Montau;6 and Newporti proiur in northern Rhode Island entered wnuner- aggrecate w share in the liydro Quebet Phase 11 cial service at the end of the year. The Otcan State agreement.
Power projttt is a unique partnership among two Coal, a ti.urth fuel, enabled m ni provide more electric utihties, a Canadian gas transmission pipe- than 607 of our dectricay from non-oil sources. Our
, line company and the project deseloper. Through our wmersion of Montaups Somerset Stanon from oil to FUA Ocean State Corporation subsidiary w e base a was was a signincant step w ben w e took it i'n the mid
.29.9G equity interest in the 25%megawan (kean 19S0t it prmed equally unportant in 1990. When State Power Unit I and the ume share in tne match- mnditions in the Mid.lle East (aused the prke of od ing Unit 11, under mostruaion for a st heduled late to double lwtw een July and Oaoher. ..e were sble to 1991 in-scruce date. Montaup and New port both hold tud mst mcreases paid h> our retail cln trk ms-hohl1 long-term gower-purchase (ontraas with Otcan romers to less t.han M . As 1990 < nJed, WJ of our
~
State Power. generation was fueled by oil, less than half the 8 Ei it (ke:iti State Power Unit I is the tirst new base load supplied in 1980 Nut icar energy, whh h provided generating statmn to be bmit in Rhode bl.md m a- 17G of our elconcity in 19So, manhed oifs WT m half-century and is the first major power plant in the 1990; wt unw burn mal to fuel 220 ~ of our geneta-
- Northeast with a 20. gar contract for a natural gas tion and n. aural pas tar 27.
fuel supph from Canada, Ibides further dnersifying By 199$, we projea od wdl supply about 119 of our sounes of energy, our investment in El'A Ocean our generating needs; wal, 21'T , nudear, 310, gas.
. State'should proude our shareholders with a pn- M . The balance w ill unne from a mmhmation of mium return.- hydropower, and sut h non-traduional sources as togenera(nin and IndelWndent power phMhhers, 4
s==s--We*-w-+-we-w.,ya n--=w w--m-e- erte erww ww us-w. -. ==wo -wa w www o r w*- rem---g--v e ,--m, v -,,,--e viw -g r rrrw * ' ip v wmy + w, ev y y p w--e r-r-te--aw-+ , - u ~ea -r+ 7 w v a *-mg-=vt-**
( unwn aiion and luad maagunent los i subinht J lean .m st atut rds tur irttaan pdlot Conservat mn arni load nunacemna progr.um oih n d ann, nu hulmg standanh Imunny c:.muum inon to our t osmmt n produu d 11000 kdow at n at o ut to ni .ml m! to ol genu. inn , in n spome io i retius ed M suin th nund Rt dut mg peak Jcmaul u a t im abom as i11 ram ( ongrcu in i nily lent i
post p uns our net d io un nt m f unue unt h not .ouanimenn io t he ( Inm An At t w hu h niabinh a i et ne rar mg f at ihon .nul s,n n our i uso nu n (nonn t u o phasnl ni dit s pow t r plant pol!nt mn t ont rol po About ~ 200 t ommen uL nnlusn ul .nni n sn:en- e r.un io n dus t t uns oons ut sultur Jiou k . uni muh s tial i ustomen p.n t u ilutol m one or nwrr o! our i on of innop n We altra,h burn t oal u ah l~w subut wn at nin .md load tu nwnent procr.um in t wo e>nto a at Ntenuop s somo w : Sunon and pn hiur Talmg aduntace 14 t hni p:ocr.mn t iul h J our ( u s. .un a sn ut t un low u multur i val ni hs an w c un tomen to reduit tht u ncnt for tin u n in by appano o onoom alls incet our Pm an uoinncm.d ohhga-nutch W nulhon L dow at a houn pt r s car M .nt t.om unsh i t h< nt u i h an A n As t anJ ( onunon ottcrme an ncn more ntunn e wrin of 5 omen anon wahh of 51awa< huu n s nyulanom w nh t he nt w anJ loati nunagi na nt pmcrarn m IW1. adnm n- ioal As a n suh ofth n e uni o Inn on, I l'A ant u i toed under H R(' ngulanon ly N1onunp t'it our pan % ihar N1ont aup u,li h1 ahic m nrihn inwu suhur a t.ul submhann. tucl an I onh nonnnali apaal u mt nu on an no n e 1i R( o p rronung Stontaup to in our os < spea- pan d i 1!A don n o .na n innt an) nun n .i unpa t da urn on < omen anon and loa i nuna.n mua pm Irom ihe anu ndmenn giann t hrouch as u hoh sale rain in.ubbnon ble kuoac l astcro I dnon. Stonou Nns pon ru own of a pornon of t hc t no , ot our t ..nsen a t mn nd 11!A $ct s u c are aho iun n s eo t en.nn an unn-progrann w di be othm bs three annual pn nu nn onmaipns(ohnp Alan.n3 ment n uruhh to } n la t w hu h Ntontaup leg m in en me f rom hoston I dnan ihe oun una or am of t hne on m mucoul mancrs or (mmpany m Iwo. ~1 he pas wnts an part of a w n h ro nom. tc t h<. nh unan pon nua! unts w hu h nus mcm agru nuu n at ht d m a cast based on an a suit h n t he p d u s e-t t h< se i ompanu s m snxh utended ouuye ot hmn n 1 dnons Pilgrno Nu< lcar , asn m pnn n k nom e ro habihn unun rs and n.
Powcr Plan:, w lu n Stantaup has a pow cr-pun hau nukctlannt Ilow< urn n om pu .u t & a t i h n i u n<
con t len n nt to proin t w hd ha h>!ahn d am, w dl i c .nwmed is or un be entora d .n:.une t hc unut.uu ( . .n r u r hm ironn wout u n h inpn t m thne nunen I he in Jera! l m m.nnicuul Protn t n,n Arcia s it PA > As < a i b i ml >c: si. I'"n L t he I t 'A wu t m lus aIh! t trtain st alt J1bl b h a! Juf } h sfi[It. s, Ii n c llirna l b !!n nrThi(tnts (d ajymni!!Mt t is b 1 tillIln d t til t (HI
?
t-on our iclease of pollutant s nao t h n a nonma mttmnwithcht ton eonic em nonmaaal mant n an I hase broad anthunn m on.no non flu rns ah, an I non.atn ihat adJa n nal np n.hnnn m n l-ins hnhng the ahthn= to rnpmc m,ul!an en of pdin nu urnJ though 19 e up tu 51 o nulhon non t omro! dn u o and remedul .n nom I ht ! PA (11thneamonna appmwanarciv $ 14 rodhon o: m< ur rn! < mn ro d.ar and 5 I i nulhon ut the ca.
cait d luf nte 6 ($ lelate ni hl a lsn4K- hl,a ku s die is c uiroa h amon unm t c i um of t he nu urn d i ou s mcr i im o or per usi nal n s m o m!v to ou nm s ( n .u n a f h ii! r t SI t t lsis lit if s ra!! s AIP F N$tdit atij' is i tirf t IPl>
n i i m i m e < < n.n n i n t hi un or m i < ou s m n s N1 i ?
i.n 1 u nnan d unounn atn PP U an n. 4 m ,w n r nunal& son ( sm s u.h> , a hn h .nc u n b.
e s of rhtseeunoe n hau m 4 bu n t ompined .b a rnuh id
- he a t owrahihr , m < m n nt iau s I l'A 19 la st
[!'aC [In till!!ilati illtjW I? c!!(Irtd lle n IM aI ( i >it s ar t na na t r ul n , t he I ( A N sn t a vi n .u e m-in niu.d
,ub c h trs and b i nna mJcJ a luhth toriho
, + nas
- - _ _ _ _ _ _ _ - - . - - - _ - _ _ _ _ __ n,. ,,,,n
y I' New Accounting Standards System a required to pay additional amounts deiwndi
-Adoption of FAS 96 provided a positive nr cash ing on the a tual amount of energy tecched under impact on 1990 earnings of approximately SOM tml- suc h contracts. The demand costs associated with lion, or 3 (ents per average coinmon share. I AS 96 these < ontracts are reflected as purchased power-tequires the use of the hability method of accounting dc mand in the Consohdated income Statement.
for deferred income taxes for all temporary diRetentes Montaup is recovering through rates its share of \
caused w ben the tax basis of an asset or liability dif- utimated deconunissioning costs for Millstone Unit !
- fers from that reported in the fmancial statements. 3 and Seabrook I' nit 1. Montaup's share of the tur-Under the liability method, defuted taxes arc tently allowed estimated total costs to decommission recorded usirig the tax rates that are expetted to be the Millstone and Seabrook units is $7ci million in effect when the temporary differences reverse. in 1"86 dollars and $7.0 tmlhon in 1987 dollars.
(For further discussion of FAS 96 see " Note D- respectively, w hich is based on studies perfbrmed by
' income and Deferred Taxes l1 Northeast Utilities and the New ilampshire unkee The Financial Acwunting Standards lloard issued Division of Public Service Company of New Ilamp-Statement of Financial Accounting Standards Na shire. In addition, pursuant to contrattual arrange-106(FAS 106h ' Accounting 6ir Post Retirement ments wiih other nu;1 car generating facihties in Bene 6ts Other Than Pensions " FAS 106 establishes w hich Montaup has an equiry ow nership interest p _ accounting and reportmp standards for post-retire. or lite cd the unit entitlement, Montaup pays into ment benents includmg nealth care and life msurance demmmissiomng reserves Such expenses are cut-and it will require the accrual of the expected cost of rently recovered through rates,
^
such bene 6ts during the employee's years of service Under the Nuclear Waste policy Act of 1982, the and the recognition of the actuarially determwed Department of Energy (DOE)is obbgated to design, total ustl retirement benent obligation earned by license, build and operate a permanent reposuory for existing retirees EUA must adopt this Statement high level radioactne wastes and spent nutlear fuel.
no later than 1993; such adoption of FAS 106 is not The At t speci6es that DOE provide for the ditosal expated to have a material dTect on EUA's results cd the waste nd spent fuel starting in 1998. Sea-of operations as a result of expet ted rate-making brook anticipates that the DOE will be m a posioon treatment. to auept fuel for storage or disposal on or bdore 2010.
l At Seabnmk there is on-site storage capacity 64 Other twenty years or to the year 2010. No short-term capi-
- The EUA System is committed under long-term t.tl expenditures are anntipated m the near-term to pun based power contracts, expirmg on vanous deal with any m(rease in storage requirements Mter dates through the year 2020, to pay demand charges 2010. Milhtene Unit 3 has sulhcient omsite storagt.
whether or not energy is retened. Under terms m taulines to accommodate high level wastes and spent
- effect at December 31,1990, the aggregate annual fuel tbr the rroicued hie of the umt. No additional mmimum commitments for such contraus .s approD expen<htures are pmjeued for the foreseeable future.
imately $ 133 million in 1991,5 IM million in 1992 1.UA, e parent company of EUA Power, EUA and $ 139 milhon in 1993, and will aegrtgaie 52.6 Logenex and EUA Ocean State, has guaranteed cer-btilion for years atter 199L in adshtion, the EUA t.un ohngations of those subsidiaries At December 3L 1990, the aggregate amount of sut h guarantees was approximately S 1102 million. The 1990 addi-t u,nal charges to earnings agamst Eli% investment in EUA Power includes a reserve for EUA's guarantees of El'A Powei obligations.
4
- 6. nii M.. _ _ _ . _ _ _ . _ . . . . . . _ . . _ _ _ _ . . . . . . . _ . ... ...
m u.i==
q 9
9 .
k L $ - I that u gion.d noch ar p m rat um unnpamm. has Tht nunircon nt ut 1:auon t h hnes Assos urcs n guaranteel in pro rau Jurc ot Jeht obhyat unn et toponubh tot clu t onv hdated f mant ui sutements rhmc tomjunws rotali.n; approunun h D rnd hou .md n Ia n a mio n onon ira luid m tins amnul in aJJitmn Monoap as a ; r ( q m n pn t u ip.n o nyve I hc t.n m,iJ 3 tan ao on an pn pocJ m lit I M (5 t iM Dj ufin s ( t dist rth (llW tI II aIrL If alldlliub Hi t t; h af u t A t!!! c1 e tc e a lli .n i t } '!( d . t (i ullt lin' } 4111 -
ta iht a s. h n i u.n amred appnumun h in ' nulhon iphs.q A abh uran ngo.anIunhnc acJ of the ountanding Jcbi of thcu iwo ionqunn s win.h na iude an ma los J on tht hnt i trunan s and unounnJ to $J:m un! hon at t hu mbt r sL I"on m in m-ms of manac; nu m en nu: a, pmpo. n wn in aihtion Montaup and New pon hau uunonmn sob al'on tu nonn uhts 1 mans ul mbrrnat ma renu! wnmunncnt s una t a n,u an t Ihd.k n ansum m, hmi; J t he w h( n m t ht annual n pon n i omon ut smn rauhr a s suppon .u in nu nt for u an subs < p e u a h 'ht imam ul sun mcna to Pho w ha h n al apprmonart13 5 m o nulhen an i Tlu I ('A vn .n nmnt.nm an as usunnoy 9 su u
$ ' o noihon, respet nu h and n lato f ss su m of mn rn d wuno!i w ha h arc sh sic nul : i prm n!c n asonahic .nsut.un t as to he Organbation.d thannes a hduhn a hn.un ul rnonk and the pmn( non of Don.ill ( i Pa r d u s w.n t k ( tui( hairnalid t he hoani asu e s Thc 5ysu m's statt i t ma rnal aajuon wnJnt t s nt Tru sters ut o n t In y 1, P HO. upon t he n t u r. n s wu , t o m.nnt.un t h< t Mo nu m ss of nau nal wn -
ment f rom that pm t or f 'hn L (, ln horn, J r Mr nulpn. sci.in InhornIcJth Assos unon f or t w o Ju adcs as Picu- c n,, pen A 1, hund. Ihe Mn n ml pend at tient. ( hiti 1 sn at nc ( hm er an 1( Larman i h w as a n un J pol h. m o anunn. n enoccJ to t s.unne an umovativt leaJcr w ho to .L an as tnc mk eo<nu n .nl t spn t h: a opouan on our un.m. ul sun menn-s-,
the suu ess of t he 5caFrook prog t t an i tsold a mam Tht tr nannna mn an hok a a s ww of nuern d wn-am ment team that namtonncJ l UA imo a s nann- uoh to ihr t ucm inporcJ b> , encially .u u pn J anJ Jnus; wmpam ehrm c suninh Mr. I n born n uim a Tnnar M r Parl.s n t.u m The .\ nit ( mn n n n ce ni d u Bo.u J o! Ti u u co.
hn pounor, as ( inet I:sn or n c ()uka whnh uim nasah13 i .! out sub 'l nntro , m< < n lohn R Stesens. w ho had been N mor I sn unu w uh nunagunt m. ma nul auduon .mJ toop( n A Yue Presnlun w as deuul Presnh m sua cubot Mt la br .mJ m Jns ms aulon e nannali onnok md Pardus m t h.u post. I ? onnoun as ( hat ()p ur m, nn.un ul r eporong n ot n n I h- unan.d auJuon and Ou s et- ( on; en a la bund hau tru au ess to t h: AnJu Prit t 5 lbo bin at al W \. n Iv ia tin 4r n< !ike w(t' (( nunnin w I!!n hH thanap nu id pa st nt eleu rd Trusn es. ettu n . - Jan ury , ko l . s u; u r i my ()liu r in Amn an i Natiun 11 (iarin L lr u ti .
leh re.alwd t he an 14 nunduon renicnalit triun the Boani or Tunten Mr D.unon n Pu mh m and Chn r llu urne ()Mn t r of the Bank or Nt u ; on 1.a r -
her m the scar he was el aej m the Bo J :: thru m n et Ntw por: I lu un ( vrp un-n Mt ~1h~rn hL, nas .rp 4ran Jun to. and n uace.
M r. ( iarrit. k w ,ts a Trn d et s.I a c l' N ' Mr drin p unt d the Board tet ,can tan r. I w ru l't:lu m Assos urn h n in en tonunan m hem nt tr -m t ht u u nc w unsel m er!ht s ca n % an eq,ulb-not m- <
rn he al le to repiat e t han u n h sus h i apshic m in ni uah as Mnsn ihnon on- 'I h. m h Ro < n ( i . P< 'u Julv Viu Pn u<icm et ! l 3 N n n e ( br pi rra non w a , < h t a d Prt e n t n ia NLw p ur I h t u n . en n t a r u n h < r r .u e p m t o .n i ' t h.."
( om p.u n
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1 ;;.
CONSOLID ATED ST ATEMENT OF INCOME
< &n EsJdDmke R
^I D M Ld' DIM ! 16*%*T!N?!_d*/N W"^*"#F _
IM I989 .I988 Operating Revenues _
S15t,N67 . $108,5p .$ p 1,1AM-
' Operating !~xpenssi _
l'uel - 95,617 .100A62 97,202
--Purchased Ibwer Dernand 97,510 88A30 68,13:1 Other Operation 111,635 80,9$ 12 69.156 ,
blaintenant;e 22,540 18,0 2 17,283 l
Depreciation and Amortuation U,544 / % ,906 22,951 hw Tues -Other Than income 20,261 16A98 15 A02
-incom_e.and...D. eferre. d Taxes.
,11.345 19,610 1 8,796 -
_ jfotal Qpera. ting Expemes_ _._ _ ,
396dH2, M 189 108,926 Operating Income 55,385 $8,388- 65.212 Equi _ty in Earnings ofJointly Owned Companics 2,37 l 1,670 1372 Allowante for Other Funds Used During Construction <i;623 .l.781 1.591 Additional Charges to 19901:arnings(Note A) (133,716)
.,_ Otijer (l]njucti.ons)lncone-Net (Note A) _
__ (11,021) _ A i 19 961 -
(less(Income llefore Interest Charps js2,358) __ 66.962 69,t46 _
f Interest Charges: ,
Interest on Long Term Debt 85,297 87,936 - x0,140 s Amortization of Debr Expense and Premium 2,725 M*05 2,230 Other interest Expense 7,073 11,0 H 5,3841
_ Allowante Jyr llotrowed Funds thed Du_ ring .Conu ruction (Credit) _ __ 350,912) (90,592 t (59,025) -
- _._ Net, Interest Charges _ _ _ _._ ._ _
1;i,153 _ 21,953 28,U9 (less) Income liefore Cumulative Effect of Accounting Change (126.3 I I) 45.009 40A07:
Cumulatiye Eficct et Accounting Cipnge for inmme TaxesjNote DL _ _ 523 ._. _
(Loss)Inmme After Cumulative Effect of Accounting Change (125,98SF 15,009 40A07 Preferred Dividends of Subsidiaties 4,196 '4,132 2.9 12 ,
y .$trypthlargl Net {LpssllncJme .
5(l40,1821 5-40.877 5 PA75 7 .. pefage Cqnmon Shares Outstanding , _ _ _ 15.917,255 1 t 87 7,u? 1 11.167,915 Consolidated (Loss) Earnings Per Average Common Share-
- : liefore Cumulative EtTect of Accounting Change _
5(8.2 i n $2.95 $2.85 e
_ Cumul.arhe Effect of Accounting Change for traon.nfrges (Note D)_ _ .03 , _
Jgahlgted11pg),Drnings Per Share _ _ s(8.185 - $ 2.95 ; $2 85 f-'
. Di_vid_e.n. ds P.a_id_Per S_ha_re___
. ~ _ __ _ - - _ _ _ _ _ _ _ _ _ .
52.575 S2.475 $M75 l Tlw aan;paenn eter arr av isteruipart of tbefinasid aat<wxnin 1
1
':i
)
F i
^;
CONSOLID AT E D ST ATE MENT OF C ASH FLOWS
% s imJ Ji%mM 41 (in 7/ms,J. ) 1990 loN9 lyM Cash Ih from Operating Artisities:
(IAss) Income After Interest Charges $( 12 5,9hM M I ) $ 4 5,009 $ 01, m' Adjustments to itemnt ile Net (loss) Inwme to Net Cash Prin :Jed f rorn operating Astivnies Deprn iarion and Amortuation 49,025 3 2,9 E' 25.5 W Amortitation of Nuclear l'uel 7,359 1,69s 1, N 2 Defes ted Taxes N ,Ot>8 2s, Us 25.0 %
Cumulative l'. flu t of Auounting (:bange f at inwme Taxes (slu investment Tax Credit, Net (1, is o <s,4 ist (lI,usi Oil Comervation Adjustment 1,007 Um 5,'24 Allow ante for 1 unds I ked Dur mg Construt tion (55,565) i W C'7) i60,616)
Non Cash Intuest Expense stsso u,,s2 i Ad hoonal Charges to l'NO i armngs (Note A) 13 4,7 lb Othe r- Net (12,012) 6 165 (s.812)
Changt s in Operating Aucts and 1.iabilit n-s.
Auounts Rnenable (5,587i m Isn (8,56)i Materials and Supplies (M9 3 ) Il. soli (292)
Auounts Payable 4,s13 'M4
, 1, WH Taxes Aurued 2?SS l.sov i 5.N9 0 Ot her - Net i1,65; 4. n c: ( 7. Us >
Net Cash Provided l' rom Operatmp At cis aies 41,677 1s9s n Mo9 Cash ILw from insesting Actisitits:
Construt tion INpendit ures ( W,92w 0 5.861) tos,;om increase in Other Im es ments O f, il 1) i17,th<n 06to Net Cash t hed in Investing At tnities (9 n3aoi i9 to21) cos ,9 0)
Cash Flow from hnancing Artisities:
lssuant es:
, Cominun Shares li,s 1 i ( A.s s ~ 10,067 Preterred Stik k / D ,000 1.ong21'efin Debt l24,000 153pu up j pOg Redemptions:
1.one-Terrn i)cht (21,oin) t 19,8 7 s > (So r s)
Pa terred Sn(k isoi (15.000)
Premlum on Reac(juisition aiul Finant ing 1:xpt rnes (9 s ") <l<n2s> ii,222) i UA Cornmon Shate Dividends 1.ud (io,sl u i ; t ' 'a i t 1, l6m Subsidiary Preferred Daidends Paid ( L 19 o u ,1 U > i. 2.9 U)
Net (1)ec reaw) len rease in $horil l'erm Debt oos) < s . ~ sti- 't,491 Net Cash PanidcJ Frorn Finan<ing Attn tries 2, o n M is Jun 10.269 Net increase (Decrease)in Cash 9,$s; W,x%
Cash and Temporary Cash investrnents at liegmmng of War s J91 totn 1 1, x ' t Cash and Temporary Cash Imestments at L:nd ot Year s Is.I'6 5 s. N I S s ola Cash paid durmg the year for:
Intercst 5 90,885 $ 10.2' 1 $ ,',s 0 ItKome Taxes (llefund) 5 (2.n28, 3 n.s' $
,is; f li A !kr ,1,mli:v e t n! +4u snne lar e los in nuw n i a s,it i s 's > orm; w Na \ % ~n * . a n n s ! ( , ,i o n la Ihy,H1 h r et yl *rDir? r a a sit M M ,. e a v >. n wh .m a n > cu!p l w '
17 _ . .
.. gy t sy . 34y ,
k y ,
A $ \' 'f. 4.
al .Mhf k-Ah
- a ; 4.s ' r i -
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Y CO N S O LID AT E D B AL A'N C E S H E E T
- DntmM 31; z=
(h ---7knunJa- . -_ - - - - - -. - - - -
.1990 , .
1989-
. - Assets
> Utdity Plant and Other Invatmentt
, Utility Plant in k rvke S 985.138 $ 087,M i Leys Accumulat.td Ptmispon *if t Deprn sation and Arnottuation .
241,12H 20i,990 t .
Net Unhty Plant in sersice ' u.olo 48MH -
6,809 674,850 y
._C. o. nst ru.t.t i.o..n_ L.k in._P_me. rns
-- - - z - , . - - , _ - - - - - -
Net Utahty Plant 7 50,H 19 1,158,693 38,102 s . honutility Pro;vrty- Net 23.8H 3
- Inyntments in Jointi) Ow ncJ Comiumes 54,018 16.766
,p iktomuussiomng 1%nd 10,000
- / Notes Receivable I U31 11366
-O .t_he.r _ - - _. - - _ _ . , - - - - _ --- _. . 3,179 1,251 Total Utility Plant and Other hnntments _
861,619 _ 1,221,059 Cutrent Amts' Cash and limporary Cash investments 15,176 S,791 Actounts Rn noble:-
Customers, Net 49.1 t o 42386 s Anrued Unbilled Revenua 9.681 9A16
> Other 11,73N 12,M9
_ Materials and Sapphes(at awrage cost).
9,5 B 7,9 17
~
- Furl
, Plant Materials and Operating Supphes 8,640 H,417
, Other Current.Auers. _ . - . _
-20,960 . -6,111 124,N40 92,887
___ btal Current Assets _
- Other Aucts Unamortierd Debt Expenw 12,47I 18, U S y Extraordmat) Proporty lacs 4309 6,175 Deterre.d Ik_ bus and O.cher 91,26N M.5 +
. flbtaf f_)ther Assets 10N 241 59.0x6 y
C Ltal Aswt.s -
11.091,740 s t.s?6 o u Liabilities and Capitalb.ition
- Capitaliutmn:
Common Equity - $ 237,393 $ 475,016 g Non-Redermable Preterrrd 5tn k of %beharies -- Net 15,850 15.079 Redetmable Prstred Sem L ot Subsidbrics-Net t I,5 30 . u.612
}l" Iampl'erm Debt-No Leal Cap 3raivatiun 4i3395 731,368 600,079 1.0 \0,7 H6 i Current Lialnheier Notts Payable- Banks a Lo? I 58,676
- Lon.u f lerm Debt Due Wohin Onc har 1,669 A009 Auuunts ParaNe 3s 3 54 - 2Nso6 Redeemable Pr(icrred Sem L So.kmg l'und Reymrrment MO i _-
hn Aarucd 2.806 3.929
. Deittred Taxes '"i 2 h Interest Au rued 12,174 16,09'
. E UA IWer Obbptiom Assumed by I UA (Nott A > C322
--Other Current I ubihnes 30.628 8.811 m,
. Total Current Liabibrics 167,052 i 1:i.801 -
- y. _ . .
Other Lbbihnev
' 25,9I5- 28,109 Unamortbed invnt ment trnbr
- Deterred Credits and Other 56,677 3um
'i (dl OdW f LubdHits h2392 815M 2 Au omulang! Deterred hes _ _
i1 L728 1 il,es Cumnurments and Contmpnths (Nntes h, D and K > _
haj [Uhtbrics and Capitaheatiou $ 1,09 i 7 in 31.V W O U Th a.vmpamy nta ,m wwm;ntpan of a, towast iuum nu M .
CONSOLID AT E D ST AT E M E NT OF RE T AIN E D (DE FICIT ) E ARNINGS
%<, I 8.t?.i va r k u.
Ile 7 6 M i 10')" 19 + > 19NS Conwhdated Retained 1:arningr llegmtang of Er S 92.6h2 $ N6.0 D 3 9, W Consolidated _N t (l.oso int ome 4140,182) 10 5 !? E 675
'liiral ( P. 5("O IJW I I I C' U Dividends Pahl- 1.UA Common 5 harts 40.814 M."' i1.160 Consahdated Retained (th tkit)l:ainmes --l'nd ot Year C8. il i> $ 92.bN2 5 %.07' CONSOLID AT ED ST A1 EME NT OF E QUll Y C APIT AL ANDPREFERREDSTOCK puo,e e.
I Dd/ar A wv4 4 3 m Ji% v n /- ! l9% I " 'i 9 1:astt'rt, liuhties Anodaico
( ominon Sh.trcs
$ $ par s ahle, $b,(IOtl.(I!M) slMres autlh.rt/td , lb,5 5 2,ilS slLif ts (iut st an.ilog to 1990 athi 15.262.2 I shares m 19S9. S SI,7 M 5 76,il1
( Jther Pald-In Capaal 2h232 '"M . ' 5 I Common 5 hare I Apense 12,289) U 201)
Het med (Detkit) Earnmp (78,31 O "2.6N 2
'li>tal Common i t}utty _ 2i7.59 \ D .o l 6 Preferred Stot k of Subsidiatict Non-Redermable Preterred:
k$las kstone UlleV [let trh CUmpany.
-i 2% , S 100 par s alue s5.000 sharn (D 3,500 0 00 b,(NEl, h kU() par sakuC 2 b, MN) SIlares Ill 2, N NI 2. O Prcmium 129 129 1:as ern Edtsoii( onipan3 :
-i 6 r , , $ 100 par s alue 60,000 shares i h 6.000 0.000
- 8. i2' t , $ 100 par VJluO 5(I t k H) shain (1) %,( M ) . (x h) lapense, Net of Prennutn 6 01 noi Newport I.k etrw Lorporaron:
- 7 % , 5100 par value ~,689 shares (li ^69 P cmium 2
'liital Non. Redermable Preicru d 5to< k 15.850 1107" Rtdremable Preterred- i Eastern ILdiwo (.ompany: -i 9.OO' r , f 100 pal Vahlt l50 INIo sIbtr n (1) I b.I N IO l I .ool l A 9 so" , i100 par ulue 200,000 sharn ( h 20,000 /obou d Exptnse, Net ot Premium (;SH) t 4KN Smking FunJ Requirement Dar Enl.m ()ne Year 0 001 New port 1 let trn Corpor.ition 9.7 % $ 100 par valut S.900 sbarn (h 690 lipense (22)
Sinking I'und Rctionenient Duc Wittun Om En 60)
'li>tal Redcenuble Pa ktred Not k A i Ho s1.bl2 bal Preferred 5ns k of 5ub$aharies s so.4No i -i9.u >l 11, M r i v.i n... a.
}lt a l. t s s t *i ! il e ? s IY .
. .. . . . ~
jk$$Lw N;. Si;;; a' : CO l . , . . a x , l -
m.
y;7i sa; 1CONSOLID ATED ST AT EMENT OF INDE BTEDN ESS-
- q. -
- ? w e k 31;-
O!2*rMt. _ ___z _ __ #_.- - .~ _ l?^! i -1989
([%
? long-Term Debt:
1 M '
' EUA Service Corporation:
10.2% Secured Notes due 2008 5 20,(xx1. $ 20,000 DE EUA lbwer Corporation: (Note 10 M 17%% Series B Secured Notes due 1993 180,too )
j M-Y/
17 %% Series C Secured Notes due 1992 - 99,9 9
. EUA Cogenex Corporation: . l
- 10.569 Unsecured Notesduc 2005 35,(x)o
[1 Blacks one Wiley Electric Company:
- 3- First Mortgage Bonds
aQ 14 %W duc 1995 (Series A) 9 Va dtie 2004 (Series ID . 15,00(1 18.000 15,000 -
10,359;; due 2010 (Series C) 18,00(1 Pa - Wriable Rate Demand Bonds duc 2011 (O 6,500 6,500
[ Eastern Edison Company;
$1, First Mortgage and Collateral Trust Bonds:
8%% Secured Medium Term Notes due 1992 15,(No M 9 %Ce due 1993 30,000 30,000 fjf 4 %91 due ~1993_ 5,(xx) 5,(Kni wc 8.9% Secured Medium Terrn Notes due 1995 10,000 YM- - 6%W due 1997 7,o(N)~ 7,000
,42 10%9s due 1997 35,000 35.(xx)
,[ 9%W due 1998~ 40,0(xt 40,000.
't
~ 8%% duc 1999 - 5,(nx) 5,000 cg! . 7%% due 2002 8,(gx) . s.ooo -
- g( ' 8%% due 2003 10,000 10,000 W 9%% due 2016 $ 5,txx) 55,000
,. i 10% due 2017 35,(H10 n,oon 6C Ibilusion Control Revenue Bonds:
'. 10%% due 2008 40,(xx) - 90,000 g3 - Unsecured Mediu_m Term Notes:
. 9-9%G due 1995 (Series A) 25,000 1 .. Newport Electric Corporation:
M' - First Mortgage Honds:
J 5% due 1992 700
.3 4%7.due 1994 1,000 V0 I 1 %% duc 1997. 3,000 10% due 1998 900 N 9'X due 1999 1,400
- 19.8% due 1999 .8,000- ?
4.p 8.95% due 2001 6,500 g" ' Second Mortgage Hoads:
& 8.591 duc 1998 t,sso a s, E 12% due 2011 6,2(x)
W ?Small Business Administration I.oan:
(,{ .
6.5% due 2005 - 1,163 y Promissory Notes:
f- 12% due 1993 35
, _; Unamortized (Discount)- N'er _ (1.j) . (18, Ei . _
415,264 609,079.
Less Portion Due Within One Year 1,669 Kooo
, Toral 1.ong Term Debr ; Net _ ,
500.595 5606.079 u
l& (1) \GryI:tedatrug ruurta rate tiai 6_19 fn !Y90 and 6."% far i43y y.t Theaanmpanpregndes ar e au enhgr.clpart af tkfin.snaalasysuen W h;; ; - -
1
' ggt '
NOTES TO CONSOL1D AT E D FIN ANCi At Th Provnion for estmuted tideral iin ome tas lu-STATEMENTS bditt nd ihe Jdu red ux twnc nn ruencJ to abme nrm!v n , x w at :w ,
an int tu, led on the hu tune Statetuent unth r tht. t ap-( A) Surnrnary at Addituuul(,harges tt. N101.arnioc:
tun Ot her Inunne (1)edut nonsh Net.
- "" ' #* '"'*"P""
For 1990, El% Pow er Corporation (I'l 3 Pow cri pio-vided an impairment resene against the value of as
' " " "nsohJmd Retainni 1 anungs & hut of investmerit ia the $cabroek nudcar generating stanon ajfnnuDatt!) UN rullInsin. As a lesult, l.I 3 has
.Seabrookt Sut h reserve din t udy rolut es the (anv-tucJ a requor w ah Ihe het onnes and li tung
- (hinUnnuen (SF(:) unJer the Pullic (!rility ll,ddirit-me ulue of the musnnent of Easto n l,inhoes Awo-
=
Comium Au of P> a d lol.hng (um;uny At t) for ciates (1.l%)in El,A l\nscr to tuo anJ m c im, non pros ides a rest n r on inc . omohJret', balan< c shed or P"""""'" '" P4 '"""""n Aue d a ufu b h d u ou3M
[ ,t A for a rt.un of 1.UA s guarmtees and wnunit It biilary IS, D)9 ', despite tin retamed caf nings tk I-aa i 1% has requested expnineJ wusiderannn of as nvents to i l,A i,ower as of February A, . l um , t he date L,UA Power tuel for pn.tn don under Chapter 11 request so that Ll% toull wmnier paymn a do ish nd -
on May IS, D10 , the next normal pay ment Jare 2
of th<: 1 e& ral Bankrupa v CoJc. bec N,ote ,b- 1.l .A Althouch manacunent cannot predat the nnung or Pow er Corporation for f urther informanon. L.armno -
outwme ut it s rmues', it bt hnes t hat the 511 for 1990 n dnt the t.n,lowmg adda ional c harges.
shoaki grant the requ, st bnaust of d c strong tash dow beng generated by the balante o' the El% Sys.
Isti'nated hm on I.lIA's IcIM A HUw d a !deral Ine! ( anf uit be estab!nlied until anestment in El% Power 5 W e ooo the St.C has muu. ts onler, but it n ilear that it w di Proviuon for EUA Power be nuewary cdo< t the t arrem in el or I (: .'s tom-obl;gatiom c,s a,ono mon share dn ,dend.
Estimated less on El 3 loans to liUA Power . N ooo do I t 3 Power Corp 4, ration:
ib m . c.! I l'A Pow er has a ! J . l ow nerstup nuer-
'lotal Resen es 5125 xuon est in the 1150 metaa att Seabro s,' pro' t t. ()n AJJinonal Write-t: t August Pt Us;o, Scha t.na 1 d ha liIwgm Eilchburg/UNil:L A s uu r i r n ,n t onanen ul ograt mn At 1)nemh r ;l.19tu). Et %
Cost s Anwa Pow er s no an nonem m l'ait I n ot tuihng aus k ar Other charge-etts ! m2.ooo f uel ad ano t he unpan ment rnerW w A, qprom Total additional w rite-otis ~.o n ono maulv $ i il' radhon Total pre-ta charge to earnings 14 0 h c ono IL A i s li'vm ()n li broary JS,1991, I l%
AJd: Proveaon for est i mated Ibwt r ta d a wh.ntan n tPion m the l'nacJ Sr un Federal mwme rn habihty Bankrupra Coun for the 1)ntrat of Nc w Ilampshac resulnng from esornated loss on f or n org un< anon unJer thapter 11 of ihe l ederal El3'5 irn estment in El 3 Pitw er l ' l oi O P h ~! n u tty INe (t}W Dmkrupuy Ud) [l % Pow e r Les, lhtened tn benchts u na operating as busun ss as a debtor-in posesion assoaated wah addarul w nre. under protu non of the Bankrupu v ( oun and w di otts t u,s.t no : n 'camr to Jochy a plan o a orcam< anon w hit h
, wiiulJ en.tN.e it rt, t nwree frtun ixuikru'm e int a Abt er-f R redus tion 1l1 ( aritinh '
>li, ., ! ,i , i n M 1 -
Ufulhlah) sta!ile!Usn I$[N Pow er w as 4:r3Nnl/ 4! Mildi hir the juirjk > ; t >t On Manh 20 UJ91 El2 annount ed that a w %ld
, as qmnn; n s nernt m 5eahom as i '
. m t he not extend ts renJer otters for i.inhbute an anst a ho,o de nurb I M s shm ut ths ,% irn t a nir m d Elet tnc Light Cornpany and 1 NITIL Lorporanon m t hc 'on on r .
At corthneig 1 l 3 has w ntren. oft all apaa! msts n!ated to thne tender otten.
()tht.r t f urge (!IIs rel ate (t) a pnn t,hin i4 F asidi tional mst, to be nu urred m wnnn oon w ab El 3 l'o% er s (.tlJp(cr } filin' a f bl a pn n t ib ul t\)r e571-raated lowes on t en un pnun r unt,nrent, of I l %
Enagy ime.nnent Corporanon.
21 .. . _ __
ElIA Power hied for protn tion undt r the liank- opt rat ion of l'm t I hne had a substanual tiegarne ruptcy (c*le bruuse the cash generated by the short- innpact on the I l:A 53 stem's trt eatmngs for 1990 f tttn sale of powct out of its entiticmtnt irom the As a rnult of lTA Pow cr~s dnonsohdanon f rom 5cabn ok proiut w di be msuitsicor to pay mrerest on 1 l% s hnantial statements tas dismssed below L 1 l'A its outstandirty set ured nMes w hcn tht uncrcst wtan Ibu er shoidd no longt I unpac t EUA s o}wrat mg due on May 15, 1991, and the prospct n tot sigtung results. At suc h nme as i l!A lbwet t merges in.m long-term pow er salo t ontract s prior to that datt. att hank <uptty, it wiiuld be tcLonsolidated d and only d 3 mimnul. The long-term imwcr supp!y inarkt t he it then met the t otena for wnsohdanon, taken a u ry recent and sigmthant da nturn. Tht ( be,/. nu./ iUlm Wo 1:la has derermmed rh.u .
forecast for demand of ele tru as in Nt w 1:nglan i m hght of I'l M Power's (Lhapte r 11 hhng, it woulJ be durine the lW0i has been dranutually redus eJ trom appropnan to da unsohdate 1 l'A lbwer runtise prn inus estiinate bet ause of the n onomic t ondi- ihetuber bl, UNO dummarved lldante Sheet of t ums m New I ngland anJ the unpast ut wastnanon 1 l'A Power at iku mber R low, n as hillow s (The and load manactment on New I.ngland utihtin. In li. dam e Shcet .. mounts for 19S9 and im ome St.ne-aMuion, a numb" r of mmlwung sourtes of L :ig- incn! amounts for 1990,1959 and U>SS are in, hiJcd term power supphn han lmen made as allable to the m the t ons<li dated fuunt ul statt meutd market Managt mcat orTUA has aho dmJni not to t~ ~ <! tu provide additional tunds to i l'A Powcr io enab!c it t . l 1 :; 3 . sit - 3 Wh> u make the inttrest pay ment.
While cpt rating tri ( haprcr 11, I { M P;>w t t Awt3 mit uds w ith the appros.d of t he ILmk ruptt > Court. l'"hn Not %t"'k"r"' 5441 I "
to wannue makmg paymenn of its ongomg obaga. (mrn nt Awh 7I ;
tions under the Suhrook lomt ()w nership Agreemr m Defernd Dt !nn and N>nt e nt M m \1m tthe J()A > ro the cuent its cash flow pt rnuts El'A Toul ku r 5M LI52 Puw er w ill attempt to arrange a Jcbror mt"w:s4"" 1.ublaics and 5 .a i hul irri l quat imans mg faciltty to enable a to tund wothing upaal ,
h kh% krs,L.oua) i -
trouirt ments and operating expense 3 msludmg its M 59' 4
' l.onp.h rm ik it obhcations under the IOA Iloweu r, at the ranc ,
( a.t rent 1.iat u!,m s 2 S, l u EllA Power has bn n unsua essful m arrangmg th a 2, 26 lx erro trMus finanting tat thQ dny Imaming f at ihty wouhl al .o duumukMrd Ih h trol 'lau s 22 M9 4 requite the approul t :-ti=c liankrupu y Court an ! the Toul LuNhnt s and N+ Lh4Jers 5EC under Hohhng company At t.
EUA Power intends to wntmue its nurkenne I 4"") F LI52 ~
efforts w hich have wasnad ot dirn t orgonanons w uh uribnes and partnipat mn in gnt r uion brd<hng fit ; g p, ,, ! A A; I l % Power t urrently has out-prot e.sses til_'A Pow er rewynue, that tht t om mued standmg s Iso,ht 9,cou uhc toll authorned am >unt) deteritirat nm nit et(Hu bin!t etinsli t l< 'ns ill 'Ilt 'rI b ' (,[ 17 '
%ct scs b Ni ured Nita duc ,\la\ li,199 6, cast, rht retent t hango in t he h,ne-tt rm pow er and S91'e>120u (oui i>t $ It %tioti,t n Kl autherbedi supply market anJ the new and untestcJ bidhne of 1" 'ston C % urcJ Notn due No',cm!< r li, reqmrtments for pow er wntrac n bemg unph menn d U N2 holhx(neb; tt c Norco The Notn are milater-by unous stare unhty mmmnens are afin one n' abzed by as l_ !- ou nerqup m:crnr m dr.. brook ahday to enter into long-a rm sa!n mntrat n htme lI ur l ! s t(imoWrs laI ilt-Wrs h t daf t [,l $A Power has been selhng (k ctra ny ar rates substan.
tully kiwer than its attual operanon. mamn nant ar d upaal rtlated onts, 'I h< st M racto saks, wupled w uh the to, anon of the au rual et Al l'DL resultua from th< < onnnem emen ot < on,nu wi
- - _____ _ u_ ____
During 1990 all inn test was paid in usic durmg 11 3 / W & u.nr 1la ibartandI1%
1989 and 19F8, all interest w as paid by the issuatae sought, and on Aptti 30,1990 ru en ni, aut horna-of Series C Notn in licu of ush at a rate equ.d to ton kom tlw Sit tmdct the llahhng Company Att
} 5 Yl Of flie internt w bkt h w tauld (if flerw Ise lust bir M st ral }supWhl baalk ing itan%tt t niin w it11 all been juul in ush. No odu r 1:la Sneem ,h bt m u- ou rall agen gate Imnt of SN nuihou that wrie rity has simdar pay-in-kind internt prmiuans. I13 miniJed to enabh I L % lbu t to nun as obbgar mns l'ower aho has outstandmg 180,000 Linn ngent and w orkmg upaal requin ments hit the [trul Interest Certtht ates (Cl(.sievidouing the right to through May Is.1991, iin huline pay ment m t ash of recent aJdinonal payments motingent upon arul the mn rest to in ome due on the Notn durmy tlut measurni by 1:la Pow ei\ mmme m tert.un y ears tob pool Ihihimg part of the SH: autinnbanon,11;A low mg th( wmmt n ial operanon et 1 mr 1. 5ut h Ibwcr made the Mas 1s. Uno, anJ Nmember IN Notes and CILs are sole!v t5c obhganon of I 1% PNO. ma rest p.n ment s w it h pro < uds imm shon-Ibwtr anJ are not guarantnd by El3 or am other term bonou ums ham I:l%. On nsnam e ol 52 ; nul-pe rson A ho, in wnnet t um w u h t h< ong rul pr n ,u e hon ut pretertal stos k ta l'l %, and the rele.ne of a platemtnt of the Noces and a subsequent eu hang 510 nulhan da omnussumng smul tw ha h had brui offer, Lt % lbwer mturnd tecs (4 5 lb W l,000 nubbshed by Ll3 Pmur to su ure as Scabnuk These , osts base been detened and are N uv amor- obhganons w uh reslwi to up to i10 mdhon ot need r expensc mer the hre of the Senn B Sn urni th wmnusuomne npt mcs and any uns ellanon mstu Not e- m c Amge for a guar.unce of flut obbeanon by I l A O t Da emh r 2X,1090. H 3 Pow er entucJ mto a and < he nsa.uu e of a leen r or i enht ()t ht t ritunc mg loan .ual nust agreemt ut w uh the Indust rul Dn el- transa; nuns aud"n<ni by tin si L un inde , apa al gyr cut Aut hont y of t he Suce ut Nt w ' t Lunp Ju rc ( ont nbunons and open-au ount a h.uw es in 1:l a, (FillDA) pursuant to w hit h the N1ilDA nsuul $n the nsoantt et t he NillDA lhimh obst us:,cd abmen mL hon of Sohd hre Dnposal 1:aohti knroue and shat-term borrow mes in i 1% Power f rom oth.
Bouds due m 2020 tlhauht and loaned the proteeds t n u ha h wooid be cuarana ed by I l a At Dn em.
m ITA Power for renubunemen: of expenthturn pic- ber 41. PNo. Ll 3 Petr had unheed $ 19 S nuthon s musiv un orred in mann non w u h wastrus tion et of sut h amhonranon i errain spuhried mbd w aste di3poul us ihnn In 16 mm "w har, ' i 'nda rhc agrn menn of conna tion w uh the nsuam e of the IbnJs. I [3 pun luse md ule u nh c., h of ihr in c s( th-n in un Power entered into a 1 ener of Cruht and Reunbursc- w hu h H 'c\ lim a pun hasui u s 5cabrook mternt.
ment Agreement ilot > wah Cinbank N. A 113 I la Pom r w as requard m ntabin,h a f und of Power's obhganon=. under lix .uc cturann ui hv 5 lo.00Anou m su me pay mem of pan of u, han ot Ll% (See Giuunten under Note K - Conunitments demnmnsuomng wsn of N ahook I'mt I and any and Conungenoes for runhcr miornutiom 1:1 % ( osts ut una llanon of 1:mt I or 5cabrook l'nu 2.
Power unheed the pnw enis f rom the lbneh ro rcray 1 ?nder .m agrranem aaered into amone 1:l:A Powi r, shortactm notn to Ll3 a bank .uu the mher lona ou ocrs et Scabrook, the As a result of the bankrupn > tihng ITA Pou r n hank w.n cmpowend to use su unnes of the rund in default under the tt rms of ic Notes aml the tenus shauld a detaub of l'l A Power ou m w uh an; u t to ot t he 1.ctter (d t.ledit alid Nn!n[>urM ment Aen t it s i bltgaf mns ni pn on h 61ai4munsbHum alkl t an mtm supportum t he Bondt tthanan msn Tht agiccmem aho pna nin that The Scnn B Sa otrJ Nmn. u hu h norun May n upon p.n ment m tul! of r he dn onmnsuomng and 199 s are non-re icenub!c pnvr m Nou mhcr IE unnHanen obby nons, or upon u ntn n apret ment 199l, and on or atter that dat an ru h cm ible at ut I'l A Pou r an i the riu n ioun ow m rs w ho i crut v 100 Y of prms ipal amoum dunng r he so m. imb n. the bank tlut they ou o a leau w of r he ow m r.-
penod t nJmp \lav i 1 1W2 at l 0< > 2 5 i ti pn ns i s!np sh.un m i ht Scabmok pron t t to n rnunan the pal amount dunor t he uo mmu h penud endue.; ag r co nem or at sm h t ma as the f und n quacmem n Nos ember i L 1992. and ar ino 12Y ot prun tpal n du<cJ n cro as a n suh ot a w ntu n enar.m'o N amount rhen:.utcr The N rio C Su on d N.>n s l 1 A 4 r a pun hm or punluu s nauh r hh of ahr u ha h m uure Nmmnher h, Un2, .uc non- uno ontrm t- i or aH of Lt A Pow cr s < nodemcm inun n thenulk pn:>r to mann u) I cu h du aen n m shan n rnanan and thc lunk s!6a!! : ! !! r ic s (at D k ti d ! t t ill t'. ( s ) l ( *$ l\iw( r 13 . . .
bank in May 1990.1:l% guarantent this obhgation noon nuluJmg tour rcgwinal ntulcar n neranne afkk obralfini .1 let et r oItin!It suppiirt Mic t he giuran - t i s! n[ Lunes Montan; A innt,t nu vits in thes( notIcar tee, and the conte f utui was nicasnl to I'l% 1%cr generatmp wmparues range f rom 2 2Y to M U' Fl% has not provuled a rneru ior ilm guar 'no e Montaup n ninthJ to tin tru ay luoihani trom t hoc bn auw inaivgement twhnes tlut it n unhkeh slut hu ihun lust J on as ow nt rship intonn and n bilh d stu h amotme s w ill be p.uJ
- or in t nt olcment puruunt to wntr.u nul agrn ments Am munic Oum 1 fin tin lanoan h 1%s I l% w hn h are appromi by ihe 1:11ral Energy Rt gulator3 1%cr impicmentul I m.nu ut Au ounting 5tarukni (:ommiwu il F Ra Montaur also hn an nputv Na 40(I Ah och ~ Reguhat J Fon rpow Anomn - mu u mem of x 2" m e a h of rwo mmpamn w hu h ing for muulomncon .md Iballow sni o of Plam own .nul operate t n lmes used to transmo hpho Costsf i A$ u0 among ucher thmps, requan < hat ch s f ra pow t t herwcen t he t ipin, Quebn e in t ric Al l IX'. sboahl be i apualitcJ only if in subsi y -
sorcm an.1 Nt w Fmgland imlosion in allewable wus for rarc makmg poi i 1 % ( M.m $ tate (:orporanon i Fl % ( A c.m 51 ate!
n probabic. I rom tiw unplememanon o! I A$ Un a as org.unn J to un est m ( b an 5ran Pow er 4 BP) through Octeinber $l, lYlO, ajjirtRlliuW!y I !!!T > ! alul 11 kIllt I kiegan ((41mR tltal ojirrainin
%2,9 % ;.000 ot Al l:1X relawd ro l l:A Powcrs on Dn emb( t sh Umu l l% ( Acan 5ute also tollow s imestment m linit I h.n ba n JclerrnL lt atu! w he n t he nput y me t ha l of aa ns otny for its unnuncers ITA 1%cr enten nuo h:.ngaerm powcr saln t on in ( oi!
tr.u n at prues suths am to rn user us msntmcor, all l'tilai l',.vu a n.! / Nm urw L nhn pl.uo is er a portion of any AFI IL preuomtv ik tened wonlJ stated at onemal wst. The wu of cJJmom to unhn bc n uored io us onung. plant nulndes wmt.u tol w ork Jun: labor .u ul L/u/ I Wu 1 l l!.s Powo also ha, a 121 rw n , materul, alh.t able ourht mi, allo s.nu c lor f unds usnt enhip nunot m xabrook 1 na ? (l'na A ()n dunng wasum tmo and unhn t t s harges for cna Nosember h UMo the umt owncts of N abrook. n s - neerny and sopen mon For tm uu ul statement pur-opniemg th.u I W 2 h d bu n t ans cucJ. wted ni poset deprn unon n wmpunJ on the uraight-hne thspov of the Unu 1% , reaarshng Jnpounon of met 50.1 hase I on niiman J mcful hvn ut the s anous I'mt 2 are now unJer woud, ration. but hne not t Lssn of prorrn Pnn isiom the Jerrn ianon, on a ra n tinaheed d ai proved Fl3 Powi r n unab!c. i omohJaicJ basn w t rt upm aluu t o a 1omposne ran t hen mu. o nome the i usts for w hu h a wordd bt of appnaunanly ti m DNUand i O m 19S9 nsponubh m o o .a non w uh i he Jnpounon ot l'nu and 19M basul on t h- nerage Jcpn t uHe propen c
.' ' ^muhh thmn aa in;u rul to bc p > '
, 11% balans n at t he begnuung ml en i orb h star Power wah ! u m ifmt J m onier to pn a nc and A/L u a/+le'I l'ml b m ' 'tm. m ororca it s t =ncan and unom u arram in. Al l'lh. A Al l:1 X. rt prncnn the e aun.ned t oo of borrowea an l upnty f unds mcJ ro huana t h1 lit M o sonunary of Sigmbs am Act ounung Polis in N sn mi mmt rm non pmgram In au orJ.uu e w n h Rn;s , ' t j - , b +
The (omoh !an J dn.nu 3 l n g ulaton a,t ount mg, A R TIX1 n t apiuhr -J. ai t stateme nn im iud; ' hc aoo-r* V hl M and ah d. . mt ut ut.ht 3 plant, in t he umc manner n ( crum sn ii,u in All rrurenal ma n ompany t r,unas nom cocul nul aJmuu u rat n e < ou s Al l't h n not an berw ecn the wnu hd.ued submiu-:i's have h<cn ne m i i wrn ru <.a sh nu on e: bar n n i ou n J om the (hmmare i wt s su l!!c et m dit y pbm in Il r h u tu tif un n i ed As a n suh of the ( baptec 111 anbupu 3 pr s co!- reu nun u.Un ted as a n suh of inyhrt depn s unon mg I i:A does nx wm rol t he ope unum or I l ~A ( wp< mc The i omhuwd rate ned m 1.ds ul.u um Power anJ rheretore : nu nw i ku mN r ,1, pro. Al1TX.waslx0 m U No, 22.nv m los9 and r 1 A Pawcr n not in; bdJ m ths ;,nsand.u t J tman - fl M6 mPM in .t orJ nu r w u h rquiamry (ia! statenv nn for ham ut rp.n mg purp ses I13 a.a h-r u y. Monuup m l i I A Pow a ps niul Jorned toll m s t he spor y in ihad ut aa num m : t< tr u , uw ome uw , on t he lonou u! t us t ompons nt of uncV f D m m I.l 3 hiv,cr :sce N' at b i 13 h a ci A R~D( l he t apr om Aihm nu e he It anmed i mni, torpootion im turther & udo 1 J l)onne ( onsina r un aho m !aJr ueneu M; r i > Th< a.oums,dl1A andus m w hn h n pennu i J ro in i apnahn J puruuu ,
whited s dsiJunn ar m : int.no J u .a o a-lan F oun ud A: , oi <me 5u miard N > s i im r n u ah the umi-m en m a at mum s pr m oh J ir rcruim J < rnu, N La c h 1Ia h m ( og u .
tht a gulapirs lo a hn i:an:' t pun I t h -n t i qi w it!1 f tq w f ri a( iu: ; ri t i in .c inc ir 1%N
/ee:A m i r / G i j vm M.m. opt!<tn n >r Al l'l H Lompam M , aup i to!h ' , rim t - p m s u mt h d i t
_ _ _ _ _ _ u
, a
.v.9, a a a - a a - o v, - . . - ,a +..,..:s. -
n-~ u. a 3+._ ,
di[ 4.g ;,-( k r
- y
, h['t id/f U[ f (III[l/It? ./ loues are Mhet on li ng alnount of til%es 4 Lirren! K fa)ab!c all l() fjtn il e hr '
- I rates authorised by appikable inkral and state rego. Jeferred taxes on t:ett iin actm subjet t to temp rary latory mmmhsions. liastern I dison Company dast- daderent es to the mene permined by the sariom teg-ern 1:dhont lilatkstone Wiley 1% rk Company idatory unnnmsions. As permittn.1 by the regulatory -
(lilat kstone) and . Newport Elettru Corporation wounssmns, it is the pohty of the subsidiaries in Li;NewlirO, the retail subsidiaries, ibilow the gehcy defer the annualinvestment tax credits and to amor:
of aurump the estimated amount of unbdled base are theseiredns met the prmhnrive lises of the ,a rate tevenues for ein tricity prothled at the end of the related assets.
month to matth m>ts and tevenues more (hnely .in in 19901 UA adopad I uunaal Auountmg addition they aho recorJ the ddfen m e bet ween f uel Sund.uds lloard Statement No. 96. "Aaountmg wsts inturred and futI msts bdleil. Alontaup and ' for 1nwm( Taxes" t FAS 9(,t See Not" D- -Inwme s IRA Power remynue revenues u hen bukd. and liciened Taxes for haiher details. 1 Atontaup, lilatkstone, and Newport aho record C.o A a / 7imjeu,7 c,vi, int o/m, nn: I;UA u.miders the differente between puu hased powu costs all highly lbpud mvestments pun heed w iih " =;
incurred and billed. nutunty of three inorahs or icw to be t. ash filog/ leswt Inm The general poht y of I UA and niuivalans.
its subsidurits with res[nt to aucunting for Federal <
-income taxes is to redet t in inmme the estim.uui l 4
- )
I R
1 t
- -j
~
(1))lnaline afid Deterred Tases 7
Comp oents ofinmme and deferred tax c xpt:.se for
- the years 1990, P)S9 and 1988 are as follo% ;l n, Noi) ._ 1990 1989 toss federah Current s i20 $ (2006 52798 Deferret} 9, Ni2 .S,197 2-),oM2 - ..
f invesrttimt Tax (lredit, Net t i,122) (8,it?> til.175)
H.M50 16,650 15,5m
- State: +
.Curren< - ' 5 i7 '
. .' M 2.i18 Deferred ( 5 2) 675 974 '
2.195 2.9hn i,29l Charged to (flpet atimp iI,3iS 19,610 1 N,796 -
Charced to Other income:
Current (28M 2 ist 180
- Ot ie rred - 1I,268 ( Vi li lovestruent Tax Crnlir, Nt t 161) 1.1, 621 I,90' a80-Total 5 25.269 $21 S 17 .
$ 19,2 76
- PP+PFY$'-C4fy6W-w^wewq-w W wqygg+y,,g(pdywy p y yq srg part-v4 g,W wpv ge9 w 4,yg g q ig.qy<grte eg.,g y _ , h'p 'my W vg y rg g hy gg $ gg t 99.M + wyerWW14 gg, pgf w.pqgg(t*gwm THpeWh giry"g( 'F"
! 'N i Y .- 4 i <, N :
i t
~
1 s .'eb I
" Total income tax expense was different than the arnounts com.
,', puted by applying Federal incorne tax statutory rates 1to book income subject to tax for the following scuous;
/14 Timadd - two 1989 :1988
..f Federallncome Tax Computed at Statutory Rates . $34,422) $2L61H $ho395 Yi - (Decrease) Increase in Tax From:
Equiry Component of AFUDC (1,572) (1,627) 1541)
(~ '
Ikpreciation of Equity AFUDC 1,136 214 322-Arnortization of !TC (1,173) t955) (1,289)
,d - State taxes, nev of Federal inwme tax benefit 1,645 2,27)- A61F Tax impact of EUA's write-offofits investment in EUA Power 59,458 J-
,t _i ther-O _ _ _ , , _ _ _ _ _._ ._. _ _197 ( 1,012( _ _ (2,122)
'/ Total incon ,e "litx Expeng__ __ 5 25.269 -$ 21,517 $ 19.276 a <
f 5 . ,i -
s 7
O:s
'kh T' grovision for deferred taxes resulting from temporary
..x : differences comprises the following:
is 3 19w 1989 1988
.- l.i_e Umo/0 - .
, , - Excess Tax Depreciation - $ 12,478 -S 4,726. $ 4,581 Estimated Unbilled Revenue (776) (o39) (1,076)-
, , - Unbilled Fuel Costs 12 0 (258) . - ( 179)
"U , .
Debt Component of AFUDC 15,0;8- 29,s39 22,366
, '_ Abandonment 1.oues (502) (161) (662) 1,' '
Capitalized Overheads 400 (931) I,788 Effect of State and !wal Taxes (52) -675 973
. Deferred Charges - (2 A>4) (lM u (227)
'$ Alternative Minimum Tax 23 (4,723) (3,322) _
a l Net Operating loss Carryforward (8,9 64)
T -- Pilgrim Refund (i,070)
$ Provision for estimated future tax liability resulting from the
'A write-offof EUA's investment in EUA I ower 17,160
- Deferred tax benefits associated with wrtte-ofis (3,165)
, a Other-Net . .
y,s82) (1,066) 813 Total.. $ 21,068 $2t ;2x: $ 25,0s s i$ (
q.
>j, F
W
.s A '~ ;'
s 4
My 9
- x +
1 s
a r
in-1987, the Financial Accounting Standards whidi the acquisition was wasurnmated. Newport's -
- floard issu-d Statement No. 96, "Atwunting for results of operat hins have been wnsolidated into EUA's t iniume Taxes"(FAS 96), whk-h retains the.urrent - fmancial statements as of April 1,1990. EUA's results i
requirement to r_ecord deferred inwme taxes for tem; ~of operations prior io April 1,1990 do not mcoriw ,
porary diH1 rences that are reported m different years rate the activities of Newport. This transaction has d
- for fmancial regorting and tax purposes; however, tije twen accoun_ted for using purt hase accounting and :
methodology for calculating and awrdmg deferred resuhed in $8.0 million of gmdwill itKloded it; income taxes los changed. Under the Whility method drferred debits in ihe wnsolidated balance sheet. =
adopted by FAS 96, deferred tax liabilities or assets are mmputed udng the tax rates that will be in effect O M italbu P d
- wta n the temjorary differences reserse. Generdly, for The dunges in the number of mmmon shares out, ,
regulated mmpanies, t he changes in tax rates apphed standmg and the intnw in other paid-in capital to accumulatnl deferred inmme taxes may not be during the yeau enJed Detendrt 31,1990,1989 and - i inunediately rewgnized in operating results lxtause 19S8 e as follow s (dollars in t housanda ,.
of tattmaking treatmem and pmvisions in the Fax ..
NeNirm Att of 1986. EUA adopted FAS 96 in 1990. * * ' " " " * * * " " " i
((' '[$
~
The cuinulatise effnt of adopting FAS 96 for ;triods j[))j gg
, enainy prior m.;anuary i, iw0. resukea in a so.s % s wom_ w %o million reduction of deferred tax liabihties. 'llis g, g, m, gm g,y adjustnient is retlected on EUA's Comolidated State g g, g,y w m ment ofincome for 1990 as the mmulauve etin t at g, , ,
an accounting changes Income taxes for 1989 and -
1988 have not been restated fbr this thange. In the event ofinvoluntary liqmdation the holders of -
-In accordance with FAS 96, EUA has remrded on non-rnivemable preferred stock ofIllackstone and = l.
- the consolidated balance sheet a regulatory liabibly Lastern Edison are entitled to $ !00 gwr share. In the to ratepayers of apprmimately $49.5 milhon. T'us n ent of wlunury liqmdation, or if rede:,.aa at the amoum primardy represents excess deterred inmme opri, n of those wmpames, each share of the non-tax credits resulting from the redutoon in the Federal n dremable preferred smck is entitled m: lilac kstonei s inwme tax rate and also includes deferrcd tax c redits 4.2y; issue, 510 i 40, lilac kstonei 5.600( issue, '
pmvided on investment tax (redits which were previ- $ l0; S2; 1: astern Edisoni16 M issue. $ 102.98; ously flowed through to ratepayert Also a regulatory Eastern Edisoni 8.329; issue, $ 10L $4 prior to Ot to- '
awetsf approumately $52 million was rewnied, rep- twr 1,1993, and at reduced premimus in subsequent resenting the cumulatteamount of Federal inwme yean. Newponi non-tedeemable preferred stock is y taxes on temporary depreciation dif ferenses whn h callable m whole or in part at 3103. 50 per share.
- were previously Hot a t? tough to rateluyerm Thew Under the terms anJ provisians of the issues of s amounts indude the tax effect or the future revenue preferred san k oflilackstone, Newpon and hastern' ,
requiremeius and are being amortired over the life of Edison, cenain restrictions are placed upon the
'the related depreciable assets concurrent with their payment of dnidenih un tommon stock by each recovery in rates, wmpany At IMember 31,1990 and 1989, yht -p EUA has approximately $20 mili on of mvestmem respu tive capitalizanon ratios were in eu r!s of the 6 tax crethe carryforwards whkh expire between the minimum which wouhl make these restricions years 2001-and 2005 and a net operatmg loss carryfor- effective.
ward ihr tax pur[mes of $26 milhon expiring m the g C l year 2005 ETliese (arn forwards are prunarily rdated G Redeemable Preferred Stock: q to EUA Power. - Eastern Ednoni 9.00W and 9.80% Preterrtd Stoc ki issues are emitled to mandatory sinking f unds sotti-(D Acquisitione dent to redeem 6,000 and H,000 shares, resputivdy, '
On March 27,1990, EUA consummated the punhase during each twelve-month period wmmencmgJuly L '
i from NECO Enterprises Inc. t Ni CCn of all of the 1991 m the case of the 9.00G mue and September 1 j common Hock of NECO's wholly-ow ned subsidiary, 1993 in the tase of the 920" inue.
Newport Electric CorgwarioniNew puti. In return The redemption prue for a b isme is equal io the-EUA issued to NECO 540.000 EUA wmmon shares- maial public offermg prk e t $ 100) plus accrued divi-(. .The total mst of the acquisition, induding $ 1.6 mil- dends. I astern Ethson aho has the non4amulative lion in fees,. was valued at S 19.5 rmilion lused on the l
dosing prke of EUA mmmon shares na the date on b
opt ion of it du tunig an addinonal 6.ol41.un t S.OOil in Ih((in!u i 19 4 6, I e t t i n i d e > >n nsta ,1 $ J $
$1w o m n speu n t h, donny t at h t wilu mont h pi e nst nothonoi ) ost Monran lionJs. A urnan ,I N i un 1 at u h luiu~. Mt dnun 'b on N,to dut m 19 > ' .mJ 10% at uv t r -
Nt w por t i 9 N PuhrttdSuni iunt ninothd nt r a n , s ang me f rom N s' to N 9< an,I 12 5 oul-(O tuandator) slidinJ turbh sulin it sit to rt d t til slll.I In tfl t d I1 ' taa i ulnl Mt illulin 'llini Mut s $t rii3 A ilut 1 6.t s dor me. ras h tunannny t w t h e roont h pt nol luos ta uin n st ran s r anr ute fiom o to o Js unnl the uar JOUU, at w hn h tont am shan s . ut- Pn u ( t Js w ut ust 1 t o n p.n all shun -n no & be oi blallding illus! k W lt slet, fid s!. 'l lit' r t h. l f tl'i n all j't u t ' ! a'.lt til 1-(Ilv di af stl !!s w lh d14 tiu In tk .*ul Mdlat s.
n $ 100 pt r shatt. Mont oup in the tu nt of anolontary lupudan , tht ado m- 'I he ay e n v.u c .u n +u m of 1 ur t t nt i 1 % % su m t .n h alle prof (ind uut k of l' astern i dhon n t at 0101 to on! inc f un i nipun tw nt > u u lu hny 1 l 3 Pow t t
$ 100 pt r hare. In the nua ot u hnaar) hipudanon, and anu unn that in.n be s o nta I b., <n adable prop or il ruh tmul at the ept mn of I asoin I dnon, iht t rtv alhnono an i matuntu s for lony n no A bi, for
- 9. 0* < iu ut n ua n led to i 10'> 00 pnot to Juh 1, e .n h ot ein in r 3 c.o s i di-w my Pion en 31 M.o.oun
'.991 anJ $ Hio 's tot a in c 3t.o in iiod t ndmy juh 1. in 1991, i i s.ti ? s .t u ni ai l'"if f 41 sfl.initi m Prx Tht 9 M, usur n entulrd io $ 109 80 poor 199 s. $ s,i w.out i in 199 i an I $ m," 4 t .iion m to 5eptunber I, Um Tin rt dempnon prennum lous rOdth t s ill AtlknD]lK al ) Cars Tht aey rryatt arnount t,t rtilet riiab!r 1 it it t red fl! l inn <'t ( tt thi:
uot L smLmp tuo l ru nrements, tur eat h of tiu hu I l% N stti . o out aron mamnun shor t n on hrn s of Hat-3 follow ing 1990 arc' $650JH eu in 19'11 and s rt tht u d h s ali,un bank s apert gat mf apprournatt ly 1992 and $ 1,IRO 000 m 199 ( l'F) I, and l'115 i l Ji M N ',Dilo AI I k't t InIn : il.1090. unuu-d On-tt on hnn ut i n,bt .unountut io apptouman ly c (11)long ilu m t h bc 8 m "> 0u0 in aJJuion. at t h ((inht t (I, P,10 The sanous mourare 1 ond mun ot lihu btota . l.1 % Powu had unh
- lilat bn,rn i \*anable h att IP i.l Itonth art i ob latuahuilliy an ureu.tabh ' itt r utlinht w hn h u pon on Dm mht t 6.19 J Tht lern r ut , a do pundts txtunnon on an annual bam upon routual arru ment of tht I.ank and lilas ku nm in June U>ou,1.1 % ( opun x nsat J
- 2 s nothon at 10W l' inn un d Notn .lut Joos,ria pnu sh a w ha h w ert. usui to n par shot t -n on bon ow mn in Nou mbe, l990, lilat Luonc nsual $ is nuh in of 10J5' Serin L l'ust Monger Bonds thu 201 the protreik ot w hhh wt re used to n derm lil.u k-stoin 's 1 i W Nnn A, I ust Moro are lioads
- I O pf n nunk p e nut u J Montanp to m< lo.h m o s r an SI( l '. i ; Ilu 4( n s oulu, i ne i n i n w luu appmuman h Nu et in i mi i i unsuus i mn of I l L Amnul la j eti on i or m la h b r ilu y1 o u ork m prqn sv 1la i ! M authona J nop! un nu < n.h J l b t ulu 4 P m anl soh im ni On.o n t h nun of the tau mi n au. ud n < t io a tun I .m i nun i lapansonionn in () 1In - u t t o! i ht ! M nmn et an unh t t o st p.a au t he n < pu st mto i w o ;-hast s ( m p >ut o n i mm t bai,nuJsttrnn.pnun.m l'luse I w as io ashht a all i ou of u n ai n e . .m J ; nos ip.d h n no h r x i h; m t am nu t i t hc i apa A l'lusc 11 w oulJ aJJn w t h: I n o i peu h ns$ t-m a s n ( J no m. n; t ou s a la J t o l 1 \ Pmu i s m u s t u n or
- g. uunaa ut tut no < omp osanon h u h wa J m
- op ni y I o w nnt mun , '
- ailt lls(ds l [ 4 b% % li tl ( gg g (if C L H i l l i l D P U B L I C A C C O U N I A N I 'i t he t hn e p an ui ttu prn>J(odtJ hitadur R l'" Mi in i ontoinut v w it h p ta all iau (l n J .a t ount -
- Assm mt s ,ou! subsh.u n s u bc n y u J u m t h< 21 1ounn ng tmi 1.y.n alvt d tm on mg
- unny ()puon inn n o N, (. o n.5,, ( , n, n n. .n Ro b t l'r n t lu unu< s l o on n ( h. r n , I n< on it %.n o 4, on li,ch 1.o w I tif" t hr qu.tt tof % of njul l'T hi I ht inbcr il (l) $ 111, s JLs 514 ' a $ : l '.r . .o a $; l s ' eu n 1 i $e; t,s, Ii yo ns
- o ,
- r y l{ \ lL t.,* i%% \ r o r ol . _A., e .' s e ,,;n , . , r ; f j , ,; , ,, , . , y ,j o , ,,, ,1
- t : r. . i ,j % : h , ii, ,t . , , i > , , , g~ , , ,, , ,j ; s p., ,
- 1? in , i *:4 t: r .r> ,
- l. r \ b .t e s '
- , , ,t,- i ,. , , s i lhf 0f t kidit.f't. V 11l4 N114 x 11 (2 i ti t4.i ,_ s is
- 1.nt rgy Nales innihorni of ku P RniJcoa.! 1.sil 1ih I i l; i. s i. o 1.>iy !in 1,61h 6 ei 1.61 4 f s! , l.i; 1,Ino 1,o s s
- 80) si 54J/ A!, 3 As% A 3 N is l hdust Dal .
- s] ;;;i
- r , ;; e is 3 y,tj4 1 Ecudcnnal '!
- C 1 (*
- l' le ! '\Ni h'i lhn ik V..lar per $1utt t$) I n.5 2 'n '
- It' Mist t llaiis inis t i iti tlu.uwiinis t
- 5 1: !! I
- i ' " ' ^
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