ML20094F959
| ML20094F959 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 12/31/1994 |
| From: | MASSACHUSETTS, COMMONWEALTH OF |
| To: | |
| Shared Package | |
| ML20094F919 | List: |
| References | |
| NUDOCS 9511090165 | |
| Download: ML20094F959 (142) | |
Text
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The Commonwealth of Massachusetts RETURN OFTHE TOWN OF HUDSON, LIGHT AND POWER DEPARTMENT TO THE O
DEPARTMENT OF PUBLIC UTILITIES OF MASSACHUSETTS For the Year Ended December 31,1994 1994 Name of oflicer to whom correpondence should Horst Huehmer be addressed regarding this report.
Official title Manager O, Official Address 49 Forest Avenue jy0Obb!osooo 3 Form AC-19 l
TABL-E OF CONTENTS Pcge General Infonnation 3 Schedule of Estimates 4 Customers in each City or Town 4 Appropriations Since Beginning of Year 5 Changes in the Property 5 Bonds 6 Tcwn Notes 7 Cost of Plant 8-9 Comparative Balance Sheet 10-11 income Statement 12-13 Earned Surplus 12 Ctsh Balances 14 Mat; rials and Supplies 14 Depreciation Fund Account 14 Utility Plant - Electric 15-17 Production Fuel and Oil Stocks 18 Miscellaneous Nonoperating income 21 Other Income Deductions 21 Miscellaneous Credits to Surplus 21 Miscellaneous Debits to Surplus 21 Appropriations of Surplus 21 Municipal Revenues 22 Purchaed Power 22 Sal s for Resale 22 Electric Operating Revenues 37 S:les of Electricity to Ultimate Consumers 38 Electric Operation an Maintenance Expenses 39-42 Tax:s Charged During Year Other Utility Operating Income 49 50 g
Income from Merchandising, Jobbing and Contract Work 51 Electric Energy Account 57 Monthly Peaks and Output 57 Generating Station Statistics 53-59 Steam Generating Stations- 60-61 Hydroelectric Generating Stations 62-63 Combustion Engine and Other Generating Stations 64-65 Generating Statistics (Small Stations) 66 Transmission Line Statistics 67 Substations 68 Overhead Distribution Lines Operated 69 Electric Distribution Services, Meters and Line Transformers 69 Conduit, Underground Cable and Submarine Cable 70 Street Lamps 71 Rate Schedule Information 79 Signature Page 81 FOR GAS PLANTS ONLY:
Page Utility Plant - Gas 19-20 Gas Generating Plant 74 Gas Operating Revenues 43 Boilers 75 Saies of Gas to Ultimate Consumers 44 Scrubbers, Condensers and Exhausters 75 G:s Operation & Maint. Expenses 45-47 Purifiers 76 Purchased Gas 48 Holders 76 Sales for Resale 48 Transmission and Distribution Mains 77 Siles of Residuals 48 Gas Distribution Services, House Governors Record of Sendout for the YEAR in MCF 72-73 and Meters 78 PAGES INTENTIONALLY OMITTED: 23 TO 36 AND 53 TO 56
- - . . _ _ . - - . , . - . . . - . . . .- . . . -. . - . _ . - _ ~ . _ - _ _ ~
i 3
Annual Rrport of TOWN OF HUDSON LIGHT AND POWER DEPARTMENT Year ended C+mber 31,1994 GENERAL INFORMATION ;
I Name of town (or city) making this report.
Hudson,Ma 01749 l
2 If the town (or city) has acquired a plant, Klod of plant, whether gas or electric. )
Electric ;
Owner from whom purchased,if so acquired. Hudson Electric Co. 7/lI/1891 Date of votes to acquire a plant in accordance with the provisions of chapter 164 of the General Laws.
i i
9/11/1891
! Record of votes: First vote: yes,30; No,7 Second vote: Yes,69; No,11 Date when town (or city) began to sell gas and electricity January 15,1897 j
i j
3 Name and address of manager of municipallighting-Horst Huehmer 23 Plant Avenue Hudson,MA 01749 l 4 Name and addreas of mayor or selectmen:
Richard G. Beauregard Joseph J. Durant Joann P. Forance Carl J. LeeNr Robert J. Steere 40 Green Street 22 Harriman Road 7 Kathleen Road 4 Lark Drive 35 Old Bolton Road ludson,MA 01749 Hudson,MA 01749 Hudson,MA 01749 Hudson,MA 01749 Hudson, MA 01749 l
5 Name and address of town (or city) treasurer:
O Virginia Cahill 5 Rockport Road Southboro,MA 01772 l
6 Name sad address of town (or city) clerk. l Dorothy A. Risser ;
3 Lincoln Street Hudson, MA'01749 7 Name and addresses of members of municipallight board:
Roland L. Plante Peter R. Keane Weedon G. Parris, Jr.
136 Murphy Street 15 John Robinson Drive 9 Champlain Drive Hudson,MA 01749 Hudson, Ma 01749 Hudson, MA 01749 l
8 Total valuation of estates in town (or city) according to the last State vaination $951,995,700.00 9 Tax rate for all purpo ses during the year: $16.49 kes
$29.57 Com 10 Amount of manager's salary: $98,084.41 11 Amount of manager's bond: $1,000.00 12 Amount of salary paid to members of municipallight board (each):
O $600.00 i
4 Annual Report of TOWN OF HUDSON 1.lGHT AND POWER DEPARTMENT Year ended December 31,1994 RJRNISli SCilEDULE OF ESTIMATES REQUIRED BY GENERAL LAWS, CHAPTER 164, SECTION 57 FOR CAS AND ELECTRIC LIGHT PLANTS FOR THE FISCAL YEAR, ENDING DECEMBER 31 NEXT.
Amount INCOME FROM PRIVATE CONSUMERS:
I from sales of gas 2 from sales of electricity ' $26.123,107.00 3
4 TOTAL $26,123,107.00 5 EXPENSES:
6 For operation, maintenance and repairs $24,649,000.00 7 For interest on bonds, notes of scrip $0.00 8 For depreciation fund ( 3 per cent. on $18,958,734.36 as per page 9) $568,762.03 9 For sinking fund requirements $0.00 10 For note payments $0.00 11 For bond payments $0.00 12 For loss in preceding year $0.00 13 14 TOTAL $25,217,762.03 15 COST:
16 Ofgas to be used for municipal buildings $0.00 17 Of : n. be used for street lights $0.00 18 Of .:;r.oty to be used for municipal buildings $593,500.00 19 Of electncity to be used for street lights $98,800.00 20 Total of the above items to be included in the tax lesy $692,300.00 22 New construction to be included in the tax levy 0 Total amounts to be included in the tax levy 23 $692.300.00 CUSTOMER Names of the cities or towns in which the plant supplies Names of the cities or towns in which the plant supplies .
GAS, with the number of customers' meters in each. ELECTRICITY, with the number of customers' meters in each Number of Customers Number of Customers City or Town Meters, Dec. 31 City or Town Meters, Dec. 31 Hudsen 7,711 Stow 2,346 Berlin, Bolton, Boxboro Harvard, Maynard Marlboro 112 l
O TOTAL TOTAL 10.169
r 5 Annut! R<oort of TOWN OF HUDSON LIGHT AND POWER DEPARTMENT Year ended December 31.1994 I l APPROPRIATIONS SINCE BEGINNING OF YEAR (includes also all items charge direct to tax levy, even where no appropriation is made or required.)
i FOR CONSTRUCTION OR PURCHASE OF PLANT:
I *At meeting 19 , to be paid from -
) *At meeting 19 . to be paid from -
l '
TOTAL None FOR THE ESTIMATED COST OF THE HAS OR ELECTRICITY TO BE USED BY THE CITY OR TOWN FOR:
I Street lights $107,594.78 2 Municipal buildings (Amounts are included in overall appropriations for each Department) 3 TOTAL
$107.594.78
- Date of meetine and whether regular or special. -Here insen bonds. notes or tax levy.
CHANGES IN PROPERTY l
l Describe briefly all the important physical changes in the property during the last fiscal period including additions, alterations or improvements to the works or physical property retired.
l in electric propeny:
None.
I l
1 In gas property:
NOT APPLICABLE
D*
EONDS (Issued on Account of Gas or Electric Lighting.)
{g E
a Amount of Period of Payments Interest Amount Outstanding %
When Authorized
- Date ofIssue Original Issues ** Amounts When Payable Rate When Payable at End of Year o Apr. 7,1913 Spec. Jun.1,1913 S9,000.00 f Mar. 4,1918 Reg. Apr.1,1918 150,000.00 o Jun.14,1920 Spec.Feb.1,1921 S25,000.00 2 Mar. 5,1928 Reg. Nov.1,1928 S40,000'.00 h
Nov. 29,1954 Spec. Mar.1,1955 $250,000.00 $
Mar. 7,1955 Spec. May 1,1955 5100,000.00 %
Mar. 7,1955 Reg. Nov.1,1955 $150,000.00 h Jun.8,1959 Spec. Aug.1,1959 $300,000.00 %
Nov. 7,1961 Spec. Jul. 15,1962 5450,000.00 >
b a
G E
8 9
x a
2:
E o.
O TOTAL S1,374,000.00 TOTAL r
The bonds and notes outstanding at the end of year should agree with the Balance Sheet. When bonds and notes are repaid report the first three columns only. .U
- Date of meeting and whether regular or special. " List original issue of bonds and nores including those that have been retired. @
a O O O
O O O TOWN NOTES rg (Issued on Account of Gas or Electric Lighting.) g
?>
a Amount of Period of Payments Interest Amount Outstanding F, When Authorized
- Date of Issue Original Issues ** Amounts When Payable Rate When Payable at End of Year $
Dec.18,1896. Spec. Jan.1,1897 $18,000.00 g June 20,1897. Spec. Jan.1,1898 $17,000.00 o ,
Jul.1,1898 55,000.00 June 10,1898. Spec. _
Nov. S 1903. Spec. Nov. 2,1903 $13,000.00 h
Mar. 7,1904. Reg. Jan.1,1905 $5,000.00 g Apr. 2,1912. Spec. May 1,1912 $2,000.00 %
Aug_ 4,1941. Spec. Oct.15,1941 5100,000.00 h Sep.14,1942. Spec. Oct.15,1942 3100,000.00 %
Feb.8,1943. Spec. Feb.15,1943 $50,000.00 >
Mar. 6,1950. Reg. Sep.15,1950 $241,000.00 h 3
8 5
i Y
=
E o.
0 h
TOTAL 5551,000.00 TOTAL g.
A w
~
The bonds and notes outstanding at the end of year should agree with the Balance Sheet. When bonds and notes are repaid report the first three columns only. _
- Date of meeting and whether regular or special. " List original issues of bonds and notes including those that have been retired. y
.. . s_. ,
TOTAL COST OF PLANT - ELECTRIC h 1.Repertbebw the cost ofutihty phnt h service ceding year.Such items shouM be hcluded ai cohimn ' eiTeet of such amounts.
according to prescrbed accounts. (c) or (d) as appropriate. 4. Reclassdications or tra nsfers within utihty pla nt j 2.Do not include as adjustments. corrections of 3.Cre dit adjustments ofplant accounts shouM :1 accounts shouM be shown m cohima (f).
sdditions and retirements for the current or the pre- be encbsed in parentheses to sidicate the negative R Balance O 4
Beginning Balance Z Account of Year Additions Retirements Adjustments Transfers End of Year Q (a) (b) (c) (d) (e) (f) (g) -
- 1. INTANGIBLE PLANT $3,879.76 $0.00 $0.00 $0.00 $0.00 $3,879.76 8 Z
$3,879.76 $0.00 $0.00 $0.00 $0.00 $3,879.76 5
- 2. PRODUCTION PLANT 5
A. Steam Production 310 i.ud and Land Rights $0.00 30.00 $0.00 $0.00 30.00 $0.00 m
- 311 Structures and Improvements $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 y l 312 Boiler Plant Equipment $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 g l 313 Engines and Engine Driven g l Generators $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Ej 314 Turbogenerator Unites $0.00 50.00 $0.00 $0.00 $0.00 30.00 %
315 Accessory Electric equipment 50.00 $0.00 $0.00 $0.00 50.00 $0.00 g 316 Miscellaneous Power Plant tu Equipment -
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 h Total Steam Production Plant $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 B. Nuclear Production Plant 320 Land and Land rights $1,252.93 $0.00 50.00 30.00 $0.00 $1.252.93 321 Structures and Improvements $847,756.63 $606.63 $0.00 $0.00 $0.00 $848,363.26 <
322 Reactor Plant equipment $1,255,854.56 $1,726.88 $0.00 $0.00 $0.00 $1,257,581.44 0 323 Turbogenerator Units $203,272.44 $18.01 $0.00 $0.00 $0.00 $203,290.45
[
324 Accessory electric equipment $304,398.26 ($12,135.78) $0.00 $0.00 $0.00 $292,262.48 8.
325 Miscellaneous Power Plant $0.00 P Equipment Total Nuclear Production Plant
$95,405.51
$2,707,940.33
$1,193.38 (38,590.88)
$0.00
$0.00
$0.00
$0 00
$0.00 30.00
$96,598.89
$2,699,349.45 l
g G
2 O O O
f O O O TOTAL COST OF PLANT - ELECTRIC (Continued)
E Balance j
, Beginning Balance [
Line Account of Year Additions Retirements Adjustments Transfers End of Year Ns. (a) (b) (c) (d) (e) (f) (g) o 1 C. Hydraulic Production Plant f 2 330 Land and Land Rights $0.00 $0.00 $0.00 $0.00 $0.00 50.00 o m
3 331 Structures and Improvements $0.00 S0.00 50.00 $0.00 30.00 50.00 4 332 Reservoirs, Dams and Waterways $0.00 50.00 50.00 $0.00 $0.00 $0.00 5 333 Water Wheels, Turbines and Generators 30.00 30.00 $0.00 30.00 50.00 $0.00 0 6
7 334 Accessory Electric Equipment 335 Miscellaneous Power Plant 50.00 50.00 30.00 $0.00 $0.00 50.00 f5 Equipment 50.00 $0.00 50.00 $0.00 50.00 $0.00 %
8 336 Roads, Railroads and Bridges $0.00 $0.00 30.00 50.00 30.00 $0.00 ;,,,
9 D. Other Production Plant g 10 340 Land and Land IUghts 55,500.00 $0.00 50.00 $0.00 $0.00 55,500.00 y 11 341 Structures and Improvements $334,270.76 30.00 $0.00 $0.00 $0.00 $334,270.76 O 12 342 Fuel Holders, Producers and n cd Accessories $123,989.32 30.00 $0.00 $0.00 30.00 $123,989.32 #
13 343 Prime Mowers $2,455,596.22 30.00 $0 00 50.00 S0.00 $2.455,596.22 @
344 Generators $296,559.88 $0.00 50.00 $0.00 S296,144.33 14 ($415.55) g' 15 345 Accessory Electric Equipment S832,470.28 30.00 $0.00 50.00 $0.00 $832,470.28 16 346 Miscellaneous Power Plant g Equipment $119,580.70 $133.50 30.00 50.00 $415.55 5120,129.75 g 17 Total Other Production Plant $4,167,967.16 $133.50 $0.00 50.00 50.00 54,168,100.66 18 Total Production Plant S6,875,907.49 (58,457.38) $0.00 $0.00 $0.00 $6.867,450.11 li 3. TRANSMISSION PLANT 20 350 Land and Land Rights $53,804.14 $0.00 50.00 $0.00 50.00 $53,804.14 21 351 Clearing Land and Rights of Way 50.00 50.00 50.00 50.00 30.00 $0.00 g 22 352 Stru:tures and improvements $ 168,166.08 $0.00 50.00 $0.00 30.00 S168,166.08 4 23 353 Station Equipment $396,663.05 5291.93 S0.00 $0.00 50.00 $396,954.98
[
24 354 Towers and Fixtures $0.00 S0.00 30.00 $0.00 $0.00 $0.00 Pi 25 355 Poles and Fixtures $796,839.02 $0.00 $0.00 30.00 S0.00 $796,839.02 P 26 356 Overhead Conductors and Devices $227,329.01 $0.00 $0.00 50.00 $0.00 $227,329.01 8 27 357 Underground Conduit $258.07 S0.00 S0.00 $0.00 $0.00 $258.07 h 28 358 Underground Conductors and ;
~
Devices $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 -
29 359 Roads and Trails $0.00 50.00 50.00 50.00 30.00 50.00 5oe 30 Total Transmission Plant $1,643,059.37 3291.93 S0.00 30.00 $0.00 $1,643,351.30 **
TOTAL COST OF PLANT (Concluded) k E.
Balance ;;
Beginning Balance 3 Line Account of Year Additions Retirements Adjustments Transfers End of Year o N s. (a) (b) (c) (d) (g)
(e) (f) ]
1 4. DISTRIBUTION PLANT y 2 360 Land and Land Rights 50.00 30.00 50.00 50.00 50.00 50.00 z 3 361 Structures and improvements $9,286.53 $0.00 30.00 $0.00 $0.00 59,286.53 o 4 362 Station Equipment $ 1,841,376.07 $ 19,359.51 $0.00 50.00 S0.00 Si,860,735.58 2 5 363 Storage Battery Equipment 50.00 50.00 6 364 Poles Towers and Fixtures $765,359.51
$0.00 $0.00 50.00 $0.00 2
$18,370.40 $0.00
$1,719,636.30
$0.00 $0.00 $783,729.91 8 7 365 Overhead Conductors and Devices 528,782.63 S0.00 $0.00 50.00 $1,748,418.93 8 366 Underground Conduit $404,347.88 53,707.87 50.00
$0.00 50.00 $408,055.75 t--
9 367 Underground Conductors & Devices $478,793.81 $9,157.76 $0.00 10 368 Line Transformers 51,987,866.10 $61,101.41 30.00 $0.00 5487,951.57 5
$13.576.21 S0.00 $0.00 $2,035,391.30 11 369 Services $419,084.70 $7,447.86 $0.00
$0.00 $0.00 $426,532.56 y 12 370 Meters $665,532.00 $15,987.49 55,664.50 $0.00 13 371 Installations on Cust's Premises 50.00 $0.00
$0.00 $675,854.99 g 50.00 50.00 $0.00 $0.00 14 372 Leased Prop. on Cust's Premises $0.00 30.00 $0.00 $0.00 $0.00 $0.00 O 15 373 Street Lighting and Signal Systems $329,025.66 S1,878.62 $0.00 50.00 30.00 $330,904.28 16 Total Distribution Plant . . 58,620,308.56 5165,793.55 h
$19,240.71 S0.00 $0.00 $8,766,861.40 W 17 5. GENERAL PLANT @
18 389 Land and Land Rights 50.00 $0.00 $0.00 $0.00 S0.00 50.00 19 390 Structures and Improvements $474,182.26 $5.66 $0.00 50.00 $0.00 $474,187.92 ;
20 391 Office Furniture and Equipment $490,553.25 $72,205.59 $0.00 30.00 $0.00 $562,758.84 K 21 392 Transportation Equipment $502,404.70 $100,162.00 $26,014.47 $0.00 $0.00 5576,552.23 22 393 Stores Equipment $12.045.77 50.00 $0.00 $0.00 $0.00 $12,045.77 l 23 394 Tools, Shop and Garage Equipment $ 16,224.04 S4,813.72 $0.00 50.00 $0.00 $21,037.76 24 395 Laboratory Equipment S31,799.22 50.00 $0.00 50.00 50.00 $31,799.22 25 396 Power Operated Equipment $3,497.53 30.00 30.00 50.00 30.00 S3,497.53 26 397 Communication Equipment $45,254.44 $0.00 30.00 S0.00 S45,254.44 27 398 Miscellaneous Equipment $ 14,455.46 , $5.73 50.00 50.00 $0.00 $14,461.19 a 28 399 Other Tangible Property $33.72 50.00 50.00 50.00 50.00 $33.72 k l 29 Total General Plant . 31,590,450.39 $ 177,192.70 $26,014.47 $0.00 $0.00 $1,741,628.62 h
l 30 Total Electric Plant in Service $18,733,605.57 3334,820.80 S45.255.18 30.00 $0.00 $19,023,171.19 31 Total Cost of Electric Plant . . $19,023,171.19 ,8 32 3 33 Less Cost of Land, Land Rights, Rights of Way . . S64,436.83 k 34 Total Cost upon which Depreciation is based . . . $18,958,734.36 $
The above figures should show the origmal cost of the e :isting propedy. In case any part of property is sold or retired, the cost of such property should be deducted from the cost of plant. h i The act cost of the property, less the land values, should be taken as a basis for figuring depreciation.
O O O
10 Annual report of TOWN OF HUDSON I,fGHT AND POWER DEPARTMENT Year ended December 3 I.1994 COMPARATIVE BALANCE SIIEET Assets and Other Debits O
Balance Title of Account Beginning of Balance Increase Linc. Year End of Year or (Decrease)
No. (a) (b) (c) (d)
I UTILITY PLANT 2 101 Utility Plant - Electric (P.I7) 6,696,026 34 6,470,772.58 (225,254.261 3 101 Utility Plant - Gas (P.20) 0.00 0.00 0.00 4 120 Nuclear Fuel 69,399.38 51,620.46 (17,778.92:
5 Total Utility Plant 6,765.426.22 6,522,393.04 (243,033.18) 6 OTIIER PROPERTY & INVESTMENTS 7 123 Invest in Assoc. Companies 146,418.33 146,418.33 0.00 8 124 Other investments 0.00 0.00 0.00 9 Total Other Prop. & Investment 146,418.33 146.418.33 0.00 10 0.00 11 FUND ACCOUNTS 0.00 13 125 Sinking Funds 0.00 0.00 0 00 13 126 Depreciation Fund (P.14) I,866,445.86 2,021,856.11 155,410.25 14 128 Other Special Funds 5,671,310.49 9,541,569.86 3,870,259.37 15 Total Funds 7,537,756.35 11,563,425.97 4,025,669.62 16 CURRENT AND ACCRUED ASSETS 17 131 Cash (P.14) 2,749,139.97 3,178,024.96 42.8,884.99 18 132 Special Deposits 358,871.67 358,374.96 (496.71; 19 135 Working Funds 500.00 500.00 0.00 20 142 Customer Accounts Receivable 2,964,220.40 2,621,937.73 (342,282.67; 21 143 Other Accounts Receivable 39,235.88 40,849.21 1,613.33 22 146 Receivables from Municipality 2,286.36 2,286.36 0.00 23 151 Materials and Supplies (P.14) 1,091,409.09 1,061,044.82 (30,364.27; 24 165 Prepayments 419,012.69 460,879.34 41,866.65 25 171 Dividend & Int. Receivable 45,771.61 178,917.38 133,145.77 26 173 Accrued Utility Revenues 0.00 0.00 0.00 27 174 Miscellaneous Current Assets 971.14 970.20 (0.94:
28 TotalCurrent and Accrued Assets 7,67 I .4 I 8.81 7,903,784.96 232,366.I5 29 DEFERRED DEBITS 30 181 Unamortized Debt Discount 0.00 0.00 0.00 31 182 Extraordinary Property Losses 0.00 0.00 0.00 33 185 Other Deferred Debits 368,668.72 368,668.72 0.00 33 Total Deferred Debits 368,668.72 368,668.72 0.00 34 35 Total Assets and Other Debits 22,489.688.43 26.504.691.02 4,015.002.59 O
n - . --. _. .- -.. -. . - . . _ . - -.
II ,
Annual report of TOWN OF HUDSON LIGHT AND POWER DEPARTMENT Year ended December 31.1994 COMPARATIVE BALANCE SHEET Liabilities and Other Credits J Balance Line Title of Account Beginning of Balance Increase No. Year End of Year or (Decrease)
(a) (b) (c) (d)
I APPROPRIATIONS 2 201 Appropriations for Construction $0.00 $0.00 $0.00 3 SURPLUS 4 205 Sinking Fund Reserves $0.00 $0.00 $0.00 5 206 Loans Repayments $ 1,925,000.00 $1,925,000.00 $0.00 6 207 Appropriations for Construction Repayments $20,093.39 $20,093.39 $0.00 7 208 Unappropriated Earned Surplus (P.12) $ 17,307,278.89 $22,063,561.60 $4,756,282.71 8 Total Surplus $ 19,252,372.28 $24,008,654.99 $4,756.282.71 9 LONG TERM DEBT 10 22i Bonds (P.6) $0.00 $0.00 $0.00 11 23 i Notes Payable (P.7) $0.00 50.00 $0.00 12 Total Bonds and Notes $0.00 $0.00 $0.00 13 CURRENT & ACCRUED LIABILITIES 14 232 Accounts Payable $641,992.96 $586,420.70 ($55,572.26) !
15 234 Payables to Municipality $0.00 $0.00 $0.00 16 235 Customer' Deposits $358,871.67 $358,374.96 ($496.71) 17 236 Taxes . . . . Collection Payable $18,903.78 $ 16,452.20 ($2,451.58) 18 237 Interest Accrued $0.00 $0.00 $0.00 19 242 Miscellaneous Current and Accrued Liabilities $116.03 $ 116.03 $0.00 20 Total Current and Accrued Liabilities $ 1,019,884.44 $961,363.89 ($58,520.55) 21 DEFERRED CREDITS 22 251 Unamortized Premium on Debt $0.00 $0.00 $0.00 23 252 Customer Advances for Construction $2,100.00 $2,100.00 $0.00 24 253 Other Deferred Credits $1,201,277.98 $518,518.41 ($682,759.57) 25 Total Deferred Credits $1,203,377.98 $520,618.41 ($682,759.57) 26 RESERVES 27 260 Reserves for Uncollectible Accounts $0.00 $0.00 $0.00 l 28 261 Property Insurance Reserve $0.00 $0.00 $0.00 l 29 262 Injuries and Damages Reserves $605,394.41 $605,394.41 $0.00 {
30 263 Pensions and Benefits $0.00 $0.00 $0.00 31 265 Miscellaneous Operating Reserves $0.00 $0.00 $0.00 32 Total Reserves $605,394.41 $605,394.41 $0.00 j 33 CONTRIBUTIONS IN AID OF I CONSTRUCTION 34 271 Contributions in Aid of Construction $408,659.32 $408,659.32 $0.00 35 Total Liabilities and Other Credits $22.489.688 43 $26.504.691.02 $4.015.002.59 State below if any camings of the municipal lighting plant have been used for any purpose other than discharging indebtedness of the plant, the purpose for which used and the amount thereof.
Transferred $200,000.00 to town O
v
12 Annual report of TOWN OF HUDSON LIGHT AND POWER DEPARTMEN Year ended December 31.1994 STATEMENT OF INCOME FORTIIE YEAR Total O
increase or (Decrease) from Line Account Current Year Preceding Year No. (a) (b) (c) 1 OPERATING INCOME 2 400 Operating Revenues (P. 37 and 43) $27,127,606.7I ($135,134.97) 3 Operating Expenses 4 401 Operating Expenses (P. 42 and 47) $24,862,701.72 ($200,061.89) 5 402 Maintenance Expenses (P. 42 and 47) $633,151.46 $108,652.96 6 403 Depreciation Expenses $560,075.06 $31,244.52 7 407 Amortization of Property Losses $0.00 $0.00 8
9 408 Taxes (P. 49) ($7,293.30)
$17.043.13 10 Total Operating Expenses $26,072,971.37 ($67,457.7I) 1I Operating income $ 1,054,635.34 ($67.677.26) 12 414 Other Utility Operating income (P. 50) $0.00 50.00 13 14 Total Operating income $1,054,635.34 ($67,677.26) 15 OTIlER INCOME 16 415 Income from Merchandising, Jobbing and Contract Work (P. 51) $0.00 50.00 17 419 Interest income $356,826.13 $155,761.62 18 421 Miscellaneous Nonoperating Income $1,537.93 $104.59 19 TotalOther Income $358,364.06 $155,866.21 20 TotalIncome $ 1,412,999.40 $88,188.95 rW 21 MISCELLANEOUS INCOME DEDUCTIONS 22 425 Miscellaneous Amortization $0.00 $0.00 23 426 OtherIncome Deductions $168.37 $27.92 24 TotalIncome Deductions S168.37 $27.92 25 Income Before Interest Charges $1,412,831.03 $88,161.03 26 INTEREST CHARGES 27 427 Interest on Bonds and Notes $0.00 $0.00 28 428 Amortization of Debt Discount and Expenses $0.00 $0.00 29 429 Amortization of Premium on Debt - Credit $0.00 $0.00 30 431 Other Interest Expenses $234.87 ($467.08) 31 432 Interest Charged to Construction . Credit $0.00 $0.00 32 TotalInterest Charges $234.87 ($467.08) 33 NETINCOME $ 1,412,596.16 $88,628.II EARNED SURPLUS Line Debits Credits No. (a) (b) (c) 34 208 Unappropnated Eamed Surplus (at beginning of period) $17,307,278.89 35 36 37 433 Balance Transferred from Income $ 1,412,596.16 38 434 Miscellaneous Credits to Surplus (P. 21) $3,543,686.55 39 435 Miscellaneous Debits to Surplus (P. 21) 40 436 Appropriations of Surplus (P. 21) $200,000.00 41 437 Surplus Applied to Depreciation 42 208 Unappropriated Eamed Surplus (at end of period) $22,063,561.60 43 44 TOTALS $22,263,561.60 $22,263,561.60
14 l Annual ter> ort of TOWN OF HUDSON LIGIIT AND POWER DEPARTMENT Year ended December 31.1994 CASil BALANCES AT END OF YEAR (Account 131)
Lin:
Nm Items Amount O (a) (b) 1 Operation Fund
$3,178,024.96 l 2 Interest Fund
$0.00 3 Bond Fund l
$0.00 4 Construction Fund (128) $0.00 5 Miscellaneous Cash (128) $ 1,608,964.45 6 Insurance Escrow Reserve (128) $7,932,605.41 7
9 10 11 12 TOTAL $ 12,719,594.82 MATERIALS AND SUPPLIES (Accounts 151-159,163) l Summary Per Balance Sheet l Amount End of Year Lin Account Electric '
Gas N 2, (a) (b) (c) 13 Fuel (Account 151)(See Schedule, Page 25) $171,269.62 14 Fuels Stock Expenses (Account 152) 15 Residuals (Account 153) 16 Plant Materials and Operating Supplies (Account 154) $1,061,044.82 NOT APPLICABLE 17 Merchandise (Account 155) 18 Other Materials and Supplies (Account 156) 19 Nuclear Fuels Assemblies and Components - In Reactor (Account 157) 20 Nuclear Fuels Assemblies and Components - Stock Account (Account 158 l 21 Nuclear Byproduct Materials (Account 159) l 22 Stores Expense (Account 163) 23 Total Per Balance Sheet S $ 1,232,314.44 l DEPRECIATION FUND ACCOUNT (Account 136)
Lin Amount Ns (a) (b) l 24 DEBITS '
25 Balance of account at beginning of year $ 1,866,445.86 26 Income during year from balance on deposit $60,529.68 27 Amount transferred from income $560,075.06 28 Reimbursement from sales of plant and damages property, etc. $0.00 29 TOTAL $2,487,050.60 30 CREDITS 31 Amount expended for construction purposes (Sec.57,CI64 of G.L.) $465,194.49 32 Amounts expended for renewals, viz:
33 34 35 36 37 38 39 Balance on hand at end of year $2,021,856.11 40 TOTAL $2,487,050.60
e e O I. Report below te ite ms of utiley plant in se rvice UTILITY PLANT- ELECTRIC coding ye ar.Such items should be included in column effectof such armunts.
f sccording to prescribed accounts. (c). 4. Reclassifications of transfers within utility plant i 2. Dn notinclude as adjustments, corrections of 3. Cre dit adju stme nts of plan t acco un ts should g
accounts should be shown in column (I). o additions and retirements for the ctirrent or the pre. be enclosed in parenthese to indicate the negstive y i m b
Balance Beginning Adjustments Balance f
o Line Account ofYear Additions Depreciation Other Credits Transfers End of Year 2 N s. (a) (b) (c) (d) (e) (f) (g) g 1
y 2 1. INTANGIBLE PLANT $3,879.76 $3,879.76 %
3 C 4 TotalIntangible Plant $3,879.76 $3,879.76 5 2. PRODUCTION PLANT y 6 A. Steam Production g 7 310 Land and Land rights y 8 311 Stmetures and Improvements y 9 312 Boiler Plant equipment g 10 313 Engine and Engine Driven a 11 Generators !@
12 314 Turbogenerator Units $
13 315 Miscellaneous Power Plant k 14 Equipment 15 Total Steam Production Plant 16 B. Nuclear Production Plant 17 320 Land and Land Rights $1,252.93 $0.00 50.00 10.00 $0.00 $1,252.93 18 321 Structures and Improvements $746,330.41 5606.63 S25,432.70 30.00 50.00 $721,504.34 19 322 Reactor Plant Equipment $1,129,785.47 51,726.88 S47,675.64 50.00 50.00 51,083,836.71 20 323 Turbogenerator Units $160,593.77 $18.01 $6,098.17 $0.00 50.00 $154,513.61 21 324 Accessory Electric Equipment $251,682.05 ($12,135.78) $9,131.95 $0.00 50.00 $230,414.32 g 22 325 Miscellarieous Power Plant g Equipment $77,523.23 51,193.38 $2,862.17 $0.00 S0.00 $75,854.44
[
23 Total Nuclear Production Plant S2,367,167.86 (58,590.88) 591,200.63 $0.00 $0.00 $2,267,376.35 0 X
h z
2 G; e
.2 UTILITY PLANT- ELECTRIC (Centized) {E Balance b Line Account Beginning of Year Additions Depreciation Other Credits Adjustments Transfers Balance End of Year f2 No. (a) (b) (c) (d) (e) (f) (g) P,,
1 C. Ilydraulic Production Plant o
2 330 Land and Land Rights $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 f 3 331 Structures and Improvements $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 o
, 4 332 Reservoirs, Dams and Waterways $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 2 5 333 Water Wheels, turbines and Generators $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 h 6 334 Accessory Electric equipment $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 o 7 335 Miscellaneous Power Plant Equipment $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 8 336 Roads, Railroads and Bridges $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 5 9 Total Hydraulic Production Plant $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 %
10 D. Other Production Plant g
11 340 Land and Land Rights $5,500.00 $0.00 $0.00 $0.00 $0.00 $5,500.00 S 12 341 Structures and Improvements $7,972.76 $0.00 $1,002.81 $0.00 $6,969.95
$0.00 3 13 342 Fuel Holders, Producers and Accessories $10,271.91 $0.00 $371.97 $0.00 $0.00 $9,899.94 14 343 Prime Movers $80,988.05 $0.00 $7.366.78 $0.00 $0.00 $73,621.27
- 15 344 Generators $4,380.37 $0.00 $889.68 $0.00 $3,075.14 i ($415.55) h l 16 345 Accessory Electric Equipment $24,300.45 $0.00 $2,497.41 $0.00 $0.00 $21,803.04 g 17 346 Miscellaneous Power Plant Equipment $71,677.52 5133.50 $3,587.42 $0.00 $415.55 $68,639.15 ;1 18 Total Other Production Plant $205,091.06 $133.50 $15,716.07 $0.00 $0.00 $189,508.49 9 19 Total Production Plant $2,572,258.92 ($8,457.38) $106,916.70 $0.00 $0.00 $2,456,884.84 20 3. TRANSMISSION PLANT 21 350 Land and Land Rights $53,804.14 $0.00 $0.00 $0.00 $0.00 $53,804.14 22 351 Clearing Land and Rights of Way $6,812.85 $0.00 $0.00 $0.00 ($6,812.85) $0.00 l
23 352 Structures and Improvements $19,916.07 $0.00 $2,544.98 $0.00 $6,812.85 $24,183.94 24 353 Station Equipment $97,726.95 $291.93 $9,037.13 $0.00 $0.00 $88,981.75 8 25 354 Towers and Fixtures $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $
26 355 Poles and Fixtures $54,850.33 $0.00 $5,976.29 $0.00 $0.00 $48,874.04 2 27 356 Overhead Conductors and Devices $39,393.96 $0.00 $3,819.87 $0.00 $0.00 $35,574.09 h 28 357 Underground Conduit $75.38 $0.00 $7.74 $0.00 $0.00 $67.64 (
29 358 Underground Conduit and Devices $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 y 30 359 Roads and Trails $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$272,579.68 31 Total Transmission Plant $291.93 $21,386.01 $0.00 50.00 $251,485.60 "
O O O
f
^
(\
- - \ ]
UTILITY PLANT- ELECTRIC (Continued) k e
Balance Beginning Adjustments $
Line Account Balance of Year Additions Depreciation Other Credits No. Transfers End of Year (a) (b) (c) 1 4. DISTRIBUTION PLANT (d) (i) (g) d 2 360 Land and Land Rights $0.00 50.00 50.00 f
50.00 S0.00 3 361 Structures and Improvements $5,066.91
$0.00 o
$0.00 5578.60 $0.00 4 362 Station Equipment 51,451,877.03 519,359.51 $155,241.28 10.00 54,438.31 2
$0.00 $0.00 $1,315,995.26 5 363 Storage Battery Equipment $0.00 S0.00 50.00 $0.00 $0.00 h
6 364 Poles, Towers and Fixtures $134,079.76 $34,969.31 $22,960.79 516,598.91 S0.00 g 7
$0.00 $129,489.37 Z 365 Overhead Conductors and Devices $57,840.25 543,904.48 $16,589.09 515,121.85 $70,033.79 8 366 Underground Conduit $235,472.67 S0.00 C
$4,684.02 $42,130.44 $976.15 9
$0.00 $197,050.10 9 367 Underground Conductors & Devices $231,282.11 513,674.87 S48,363.81 $4,517.11 $0.00 $192,076.06 10 368 Line Transformers $779,590.57 562,123.21 $59,635.98 $1,021.80 $0.00 S781,056.00 11 369 Services $89,941.09 518,300.84 $12,572.54 $10,852.98 g
12 30.00 184,816.41 370 Meters $324,348.62 518,172.75 S19,965.92 y
$2,185.26 $0.00 $320,370.19 0 13 371 Installations on Cust's Premises $0.00 $0.00 $0.00 14 372 Leased Prop. on Cust's Premises $0.00 50.00 $0.00 $0.00 h 50.00 50.00 $0.00 50.00 15 $0.00 373 Street Lighting and Signal Systems $61,976.73 $3,165.47 $9,870.77 %I,286.85 16 Total Distribution Plant $3,371,475.74 $218,354.46 $387,909.22 10.00 553,984.58 g 552,560.91 $0.00 S3,149,360.07 17 5. GENERAL PLANT %
I8 389 Land and Land Rights $0.00 SO 00 $0.00 g
30.00 50.00 S0.00 m 19 390 Structures and Improvements $73,347.38 20 391 Office Furniture and Equipment $196,667.27 35.66 57,172.06 $0.00 $0.00 566,180.98 k
$84,987.59 S16,953.90 $12,782.00 $0.00 21 S251,918.96 392 Transportation Equipment $153,086.28 $100,662.00 $15,072.14 $500.00 $0.00 $238,176.14 22 393 Stores Equipment $3,043.33 S0.00 $361.37 S0.00 $0.00 $2,681.96 23 394 Tools, Shop and Garage Equipment $7,172.94 S4,813.72 5526.03 $0.00 $0.00 $11,460.63 24 395 Laboratory Equipment $17,387.73 S0.00 $1,253.98 $0.00 $0.00 $16,133.75 25 396 Power Operated Equipment $1,914.85 30.00 $204.93 $0.00 26 397 Communication Equipment $15,847.74 $0.00 $1,557.63 30.00 $1,709.92 $
$0.00 S0.00 $14,290.11 27 398 Miscellineous equipment $7,334.87 $5.73 3761.09 $0.00 $0.00 $6,579.51 28 399 Other Tangible Property $30.35 S0.00 %
50.00 S0.00 29 Total General Plant $475,832.74 S190,474.70 $43,863.13 $13,282.00 S0.00 530.35 g 50.00 1609,162.31 30 Total Electric Plant in Service $6,696,026.84 5400,663.71 5560,075.06 $65,842.91 $0.00 $6,470,772.58 31 104 Utility Plant Leased to Others $0.00 $0.00 50.00 S0.00 S0.00 $0.00 4 32 105 Property Held for Future Use 50.00 50.00 33 107 Construction Work in Progress $0.00 $0.00
$0.00
$0.00 S0.00 $0.00 S0.00 $
$0.00 S0.00 50.00 G 34 Total Utility Plant Electric $6,696,026.84 5400,663.71 5560,075.06 565,842.91 S0.00 56,470,772.58 IU 1
PRODUCTION FUEL AND OIL STOCKS (Licluded in Account 151)
(Except Nuclear Materists) b
- 1. Report below the infonnation called for concernmg production fuel and oil stocks.
- 2. Show quantities in tons of 2,000 lbs., gal., or M cf., whichever unit of quantity is applicable, o
< 3. Each kind of coal or oil should be shown separately.
- 4. Show gas and electric fueled separately by specific use. g i
4 z
Kind of Fuel and Oil o Total GAS MCF 2 Line Item Cost Quantity Cost Quantity Cost No. (a) h I On Hand Begmnmg of Year (b)
$236,498.87 (c) 391,522 (d)
$236,498.87 (e) (f) y 0 40.00 Z 2 Received During Year $96,508.80 0 $0.00 32,765 596,508.80 C 3 TOTAL $333,007.67 391,522 1236,498.87 4 Used During Year (Note A)
$161,738.05 32,765 $96,508.80 9 5
107,999 $65,229.25 32,765 596,508.80 9 6
7 $ j 3
9 10 h
11 Sold or Transferred 50.00 0 $0.00 12 TOTAL DISPOSED OF $161,738.05 0 S0.00 8 107,999 $65,229.25 32,765 596,508.80 13 BALANCE END OF YEAR $171,269.62 283,523 $171,269.62 0 $0.00 !
Kinds of Fuel and Oil- Continued Line Item Quantity Cost Quantity Cost No. (g)) (h) (1) (j) 14 On Hand Bey,unung of Year (k) 15 Received Dunng Year 16 TOTAL 17 18 Used During Year (Note A) f o
19 20 h
a-21 U 22 23 24 l
Sold or Transferred C,
~
25 TOTAL DISPOSED OF -
26 BALANCE END OF YEAR Note A - Indicate specific purpose for which used, e.g. Boiler Oil, Make Oil, Generator Fuel, Etc.
O O O
s 21 4 Annual report of TOWN OF HUDSON LIGHT AND POWER DEPARTMENT Year ended December 31.1994 MISCELLANEOUS NONOPERATING INCOME (ACCOUNT 421)
{ Line Item Amount
. No. (a) (b) ;
1 1 4
2 i
4 i 5
6 TOTAL
, )
OTHER INCOME DEDUCTIONS (ACCOUNT 426)
< Line Ite'm Amount No. (a) (b) 7 8
i' 9
. 10 11 12 13 14 TOTAL MISCELLANEOUS CREDITS TO SURPLUS (ACCOUNT 434)
Line item Amount No. (a) (b) 15 Eastern Maine Electric Cooperative Settlement $3,543,686.55 16 17 18 19 20 21 !
22 23 TOTAL $3,543,686.55 MISCELLANEOUS DEBITS TO SURPLUS (ACCOUNT 435)
Line Item Amount l No. (a) (b)' l 24 25 26 l 27 28 29 32 TOTAL APPROPRIATIONS OF SUllPLUS (ACCOUNT 436)
Line item Amount No. (a) (b) 33 Transfer to Town Treasury $200,000.00 34 fG 35 d 36 37 38 39 l 40 TOTAL $200,000.00
22 Annual report ofTOWM OF HUDSON LIGHT AND POWER DEPARTMENT Year ended D scember 31.1994 l MUNICIPAL REVENUES (ACCOUNTS 482,444)
(K.W.H. sold under the provisions of Chapter 269, Actions of 1927)
Average Revenue Line Acet. Gas Schedule Cubic Feet Revenue Received l per M.C.F.
g; l
No. No. (a) (b) (c) ($0.0000) 482- (d) l 1 NOT APPLICADLE 2 ,
3 I 4
I Average Revenue Electric Schedule K.W.IL Revenue Received perk.W.IL (a) (b) (c) (cents)
(0.0000)
(d) 5 444 Municipal (Other than Street Lighting) 6 7 All Electric 6,272,100 $494,482.61 7.8838 8 Power 5,374,431 $525,752.77 9.7825 9 Commercial 528,579 $63,665.23 12.0446 10 Yard Lighting 25,067 $2,992.61 11.9384 j 11 TOTALS 12,200,177 $ 1,086,893.22 8.9088 l 12 13 Street Lighting 14 15 Town of Hudson 1,160,801 $106,295.77 9.1571 16 Town of Stow 27,443 $3,727.87 13.5840 17 Town of Berlin 388 $66.55 17.1521 18 TOTALS 1,188,632 $110,090.19 9.2619 19 TOTALS 13.388,809 $ 1,196,983.41 8.9402 e **a PURCHASED POWER (ACCOUNT 555)
Cost per Names of Utilities Where and at What KW.H.
from Which Electric Voltage Received K W.it Amount Line Energy is Purchased (cents)
No. (0.0000)
(a) (b) (c) (d) (e) 20 See Pages 54,55,56 for Detail:
21 l
22 !
23 24 25 26 27 28 29 TOTALS 320.893.522 $21,764,650.84 6.7825 SALES FOR RESALE (ACCOUNT 447)
Revenues per Names of Utilities Where and at What K W.IL to Which Electric Voltage Received KW.II. Amount Line (cents)
Energy is Purchased No. (0.0000)
(a) (b) (c) (d) (e) 30 See Pages 52,53 for details 32 33 34 35 36 37 38 39 40 TOTALS 279,800 $ 15,293.51 5.4658
cw O
ELECTRIC OPERATING REVENUES (Account 400) g
- 1. Report below the amount of operating revenue for added for billing p urposes, one custom er shall be counted 4. U nm etered sales should be included below . The [
the year for each prescribed account and the amount of for each group of meters eo added. T he average num ber of d et e sts of such sales should be given an a footnote. ;g increase or decreses over the precedmg year, custom ers means the average of 12 figures at the close S. Classification o f C om m erceal and ladustrial sales, 3 2.Ifincreases and decreases are not derived from of each month,if the customer count in the residential A ecount 442, according to se all(or Commercial) and :1 I.arge (or Industrial) m my be according to the basis of C previously reported figures, explain any inconsistencies. service classification includes customers counted more
- 3. Number ef customers ehould be rep orted oa the than once because of sp ecial services. such as w ater "I*"'I'**'i" '*8'Iarly u s ed b y th e resp o n dent if su ch basis of number of meters, plus number of flat rate heating, etc., indicate in a footnote the number of such bu of clan eation is not greeter than 1000 K w of secounts, except that where separate meter readiny are duplicate customers included in the classification ****'*****"*'** * * *'" 'I*'** *I A ecounts. Explain basis of classification.
O i
u Average Number of ::: .
C Operating Revenues Kilowatt-hours Sold Customers per month c I
m Increase of Increase or Increase or @ i Amount for (Decrease) from Amount for (Decrease) from Number for (Decrease) from C Line Account Year Preceding Year Year Preceding Year Year Preceding Year 9 Ci No. (a) (b) (c) (d) (e) (f) (g) 1 SALES OF ELECTRICITY l
2 440 Residential Sales 56,400,309.94 (5990,868.29) 70,167,817 2,574,730 8,862 196 3 442 Commercial and Industrial Sales: 3 4 Small(or Commercial) see instr. 5 51,484,858.75 ($219,142.43) 11,979,034 231,196 974 (128) p Large (or Industrial) see instr. 5 517,237,596.96 5139,807.94 210,469,687 3 46,682,462 185 (4) e 6 444 < Municipal Sales; (P. 22) 51,196,983.41 (5212,676.45) 13,388,809 73,312 90 2 7 445 Other Sales to Public Authorities 30.00 30.00 0 0 h
0 0 38 i 8 446 Sales to Railroads and Railways $0.00 30.00 0 0 0 0 N 9 449 Fuel Charge Adjustment $683,333.24 51,135,532.40 0 0 0 0 10 449 Miscellaneous Electric Sales 567,371.96 (54,879.83) 552,146 22,371 167 5 h
11 Total Sales to Ultimate Consumers $27,070,454.26 ($152,226.66) 306,557,493 49,584,071 10,278 71 12 447 Sales for Resale 515.293.51 515,293.51 279,800 279,800 0 0 1 13 Total Sales of Electricity * $27,085,747.77 (3136,933.15) 306,837,293 49.863,871 10,278 71 14 OTHER OPERATING REVENUES 15 450 Forfeited Discounts 16 451 Miscellaneous Service Revenues 50.00 50.00 < ;
17 453 Sales of Water and Water Power 50.00 50.00
- Includes revenues from application of fuel clauses 5 53,908,949.62 I 18 454 Rent fro Electric Property 527,484.00 50.00
[
19 455 Interdepartmental Rents 50.00 30.00 8.
20 456 Other Electric' Revenues $ 14,374.94 (51,798.18) Total KWil to which applied 305,396,692 [ ,
21 0
22 [ !
24 E
25 Total Other Operating Revenues $41,858.94 (31,798.18) i g
26 Total Electric Operating Revenues 527,127,606.71 (5135,134.97) * ' '
i
l 38 Annurt report ofTOWN OF HUDSON LIGHT AND POWER DEPARTMENT Year ended December 31.1994 l SALES OF ELECTRICITY TO ULTIMATE CONSUMERS
{ Report by account, the K.W.l{. sold, the amount derived and the total number of customers under each filed schedule or contract.
Contract sales and unbilled sales may be reported separately in total. l
{
i i
Average Number of Customers !
Revenue (Per Bills Rendered) per KWII l (cents) l l Line Acet. Schedule K.W.II. Revenue July 31 Dec. 31, (0.0000) j N o. No. .(a) (b) (c) (d) (e) (f) I 1 440 "A" Domestic Rate 42,236,887 $4,030,938.05 9.5436 6,824 6,876 2 442 "C" Commercial Rate i1,917,520 $1,477,467.80 12.3974 956 970 3 442 "D" Power Rate 210,469,687 $17,237,596.96 8.1901 184 174 4 440 "E" Water Heater Residential 11,194,459 $983,290.48 8.7837 1,158 1,160 5 440 "F" Rate All Electric 16,736,471 $1,386,081.41 8.2818 906 903 l
6 442 "Q" Rate Commercial Heat 61,514 $7,390.95 12.0151 3 3 l 7 444 Street Lighting 1,188,632 SI 10,090.19 9.2619 3 3 l 8 4^4 Municipal Sales 12,200,177 51,086,893.22 8.9088 91 90 9 449 Yard Lighting 552,146 $67,371.96 12.2018 167 l
166 10 449 Power Adjustment Charge 0 $683,333.24 11 I
12 13 1 14 ;
15 t 16i 17 i 18 ,
19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 TOTAL SALES TO ULTIMATE CONSUMERS (Pace 37 line ll) 306.557.493 $27.070.454.26 8.8305 10.292 10.345
39 Annual report of TOWN OF HUDSON LIGHT AND POWER DEPARTMENT Year ended December 31.1994 ELECTRIC OPERATING AND MAINTENANCE EXPENSES
- 1. Enter in the pace provided the operation and maintenance expenses for the year.
- 2. If the increases and decreases are not derived from previously reported figures explain in footnote.
Increase or (Decrease) from Line Account Amount for Year Preceding Year No. (a) (b) (c) 1 POWER PRODUCTION EXPENSES 2 STEAM POWER GENERATION 3 Operation:
4 500 Operation supervision and engineering 5 501 Fuel 6 502 Steam expenses 7 503 Steam from other sources 8 504 Steam transferred - Cr.
9 505 Electric expenses 10 506 Miscellaneous steam power expenses !
11 507 Rents i 12 Total Operation $0.00 $0.00 13 Maintenance: ,
14 510 Maintenance supervision and engineering 15 SI1 Maintenance of structures 16 512 Maintenance of boiler plant 17 513 Maintenance of electric plant 18 514 Maintenance of miscellaneous steam plant 19 Total Maintenance $0.00 $0.00 20 Total power production expenses - steam power $0.00 $0.00 21 NUCLEAR POWER GENERATION 22 Operation:
23 517 Operation supervision and engineering $16,222.35 $318.77 24 518 Fuel $25,198.53 ($16,788.90) 25 519 Coolants and water $550.38 $78.41 26 520 Steam expenses $11,988.13 $2,025.51 27 521 Steam from other courses $0.00 $0.00 28 522 Steam transferred - Cr. $0.00 $0.00 29 523 Electric expenses $224.12 ($108.62) 30 524 Miscellaneous nuclear power expenses $27,658.90 $4,872.23 31 525 Rents $0.00 $0.00 32 Total operation $81,842.41 ($9,602.60) 33 Maintenance 34 528 Maintenance supervision and engineering $7,193.28 $2,255.26 l 35 529 Maintenance of structures $3,365.71 $72.45 l 36 530 Maintenance of reactor plant equipment $ 11,734.14 $9,406.22 37 531 Maintenance of electric plant $6,273.24 $3,258.20 38 532 Maintenance of miscellaneous nuclear plant $8,502.22 $2,578.10 39 Total maintenance $37,068.59 $17,570.23 40
{
Total power production expenses-nuclear power $ 118,911.00 $7,967.63 l 41 HYDRAULIC POWER GENERATION 1
42 Operation '
43 535 Operation supervision and engineering 44 536 Water for power k 45 537 Hydraulic expenses 46 538 Electric expenses 47 539 Miscellaneous hydraulic power generation expenses 48 540 Rents 49 Total operation
40 Annual rerxnt of TOWN OF HUDSON LIGHT AND POWER DEPARTMENT Year rnded December 31,1994 ELECTRIC OPERATING AND MAINTENANCE EXPENSES - Continued increase or (Decrease) from Line Account Amount for Year Preceding Year NL (a) (b) (c) 1 IIYDRAULIC POWER GENERATION - Continued 2 Maintenance 3 541 Maintenance supervision and engineering 4 542 Maintenance of structure 5 543 Maintenance of reservoirs, dams and waterways 6 544 Maintenance of electric plant 7 545 Maintenance of miscellaneous hydraulic plant 8 Total maintenance 9 Total power production expenses - hydraulic power 10 OTHER POWER GENERATION l 11 Operation 12 546 Operation supervision and engineering $27,089.19 $2,132.94 13 547 Fuel $161,738.05 $90,137.36 14 548 Generation expenses $181,895.18 ($18,438.50) 15 549 Miscellaneous other power generation expenses $64,703.35 $5,683.44 16 550 Rent $0.00 $0.00 17 Total operation $435,425.77 $79,515.24 18 Maintenance 19 551 Maintenance supervision and engineering $26,179.17 $1,688.79 20 552 Maintenance of structures $51,643.15 ($67,019.61) 21 553 Maintenance of generating and electric plant $104,751.50 $55,646.53 22 554 Maintenance of miscellaneous other power generation plant $2,407.72 ($1,747.76) 23 Total maintenance $184,981.54 ($11,432.05) 24 Total power production expenses $620,407.31 $68,083.19 25 OTHER POWER SUPPLY EXPENSES 26 555 Purchased power $21,764,650.84 ($424,459.26) 27 556 System control and load dispatching $19,142.36 ($6,398.48) 28 557 Other expenses $42,441.45
.]
$13,815.78 i 29 Total other power supply expenses $21,826,234.65 ($417,041.96) l 30 Total power production expenses $22,565,552.96 ($340,991.14) I 31 TRANSMISSION EXPENSES l 32 Operation 33 560 Operation supervision and engineering $0.00 $0.00 34 561 Load dispatching $0.00 $0.00 35 562 Station Expenses $439.99 ($3,468.46) 36 563 Overhead line expenses $51.72 $ 14.40 37 564 Underground line expenses $0.00 $0.00 38 565 Transmission of electricity by others $899,827.54 ($15,854.38) 39 566 Miscellaneous transmission expenses $0.00 $0.00 40 567 Rents $0.00 ($50.00) 41 Total operation $900,319.25 ($19,358.44) 42 Maintenance 43 568 Maintenance supervision and engineering $0.00 $0.00 44 569 Maintenance of structures $2,072.71 $1,743.99 45 570 Maintenar.cc of station equipment $3,151.67 ($14.61) 46 571 Maintenance of overhead lines $333.82 $218.96 47 572 Maintenance of underground lines $0.00 $0.00 48 573 Maintenance of miscellaneous transmission plant $0.00 $0.00 49 Total maintenance $5,558.20 $ 1.948.34 Total transmission expenses $905,877.45 ($17,410.10)
41 Annual reoort of TOWN OF HUDSON LIGHT AND POWER DEPARTMENT Year ended December 31.1994 ELECTRIC OPERATING AND MAINTENANCE EXPENSES Increase or h' (Decrease) from Line Account Amount for Year Preceding Year s No. (a) (b) (c)
I DISTRIBUTION EXPENSES 2 Operation:
3 580 Operation supervision and engineering $25,623 05 $2,944.45 4 581 Load dispatcl.ing $0.00 $0.00 5 582 Station expenses $1,503.94 $1,216.38 6 583 Overhead line expenses $6,999.56 ($81.55) 7 584 Underground line expenses $1,142.19 ($777.29) 8 585 Street lighting and signal system expenses $8,961.51 $551.30 9 586 Meter expenses $51,032.42 $5,994.07 10 587 Customer installations expenses $2,184.85 $915.71 11 588 Miscellaneous distribution expenses $13,171.79 $7,397.10 12 589 Rents $0.00 $0.00 13 Total operation $ I 10,619.31 $ 18,160.17 14 Maintenance:
15 590 Maintenance supervision and engineering $25,534,73 $2,805.40 16 59I Maintenance of structures $0.00 $').00 17 592 Maintenance of station equipment $31,292.23 $31,110.39 18 593 Maintenance of overhead lines $207,573.47 $18,291.93 19 594 Maintenance of underground lines $ 17,715.84 ($3,528.04) 20 595 Maintenance ofline transformers $ 18,665.69 $10,071.98 21 596 Maintenance of street lighting and signal systems $8,431.83 $1,286.76 22 597 Maintenance of meters $ 1,280.08 ($5,734.25) m 23 598 Maintenance of miscellaneous distribution plant $0.00 $0.00 24 Total maintenance $310,493.87 $54,304.17 25 Total distribution expenses $421,113.18 $72,464.34 l 26 CUSTOMERS ACCOUNTS EXPENSES l 27 Operation:
I 28 901 Supervision $ 11,375.37 $742.66 29 902 Meter reading expenses $47,000.61 ($55.20) !
30 903 Customer records and collection expenses $172,537.60 $3,387.99 31 904 Uncollectible accounts $46,143.29 $2,186.27 32 905 Miscellaneous customer accounts expenses $0.00 $0.00 33 Total customer accounts expenses $277,056.87 $6,261.72 34 SALES EXPENSES 35 Operation:
36 911 Supervision $0.00 $0.00 37 912 Demonstrating and selling expenses $0.00 $0.00 38 913 Advertising expenses $105.00 $80.00 39 916 Miscellaneous sales expenses $ 16,383.37 $4,600.49 40 Total sales expenses $16,488.37 $4,680.49 41 ADMINISTRATIVE AND GENERAL EXPENSES 42 Operation:
43 920 Administrative and general salaries $350,905.21 $31,326.05 44 921 Office supplies and expenses $ I 1,731.30 $1,962.85 45 922 Administrative expenses transferred - Cr. ($66.08) ($37.52) 46 923 Outside services employees $222,701.63 $31,739.56 47 924 Property insurance $29,835.76 $3,087.44 48 925 Injuries ar,d damages $111,468.92 $64,254.44 49 926 Employee pensions and benefits $389,636.93 ($3,683.50) 50 928 Regulatory commission expenses $3,162.56 ($352.16) 51 933 Transportation expenses $55,836.33 $ 15,995.65 52 930 Miscellaneous general expenses $39,502.53 ($6,969.32) 53 931 Rents $0.00 $0.00 54 Total operation $ 1,214,715.09 $137,323.49
43 Annual report of TOWN OF IIUDSON LIGHT AND POWER DEPARTMENT Yaar ended December 31.1994 ELECTRIC OPERATION AND MAINTENANCE EXPENSES - Continued increase or (Decrease) from !
Line Account Amount for Year Preceding Year l No. (a) (b) (c)
I ADMINISTRATIVE AND GENERAL EXPENSES - Cont.
3 Maintenance 3 932 Maintenance of general plant $95,049.26 $46,262.27 4 Total administrative and general expenses $1,309,764.35 $ 183,585.76 5 Total Electric Operation and Maintenance Expenses $25,495,853.18 ($91.408.93)
SUMMARY
OF ELECTRIC OPERATION AND MAINTENANCE EXPENSES Line Functional Classification Operation Maintenance Total No. (a) (b) (e) (d) 6 Power Production Expenses 7 Electric Generation:
8 Steam power 9 Nuclear power $81,842.41 $37,068.59 $ 118,911.00 10 Hydraulic power 11 Other power $435,425.77 $184,981.54 $620,407.31 13 Other power supply expenses $21,826,234.65 $0.00 $21,826,234.65 13 Total power production expenses $22,343,502.83 $222,050.13 $22,565,552.96 14 Transmission Expenses $900,319.25 $5,558.20 $905,877.45 15 Distribution Expenses $110,619.31 $310,493.87 $421,113.18 16 Customer Accounts Expenses $277,056.87 $0.00 $277,056.87 17 Sales Expenses $16,488.37 $0.00 $16,488.37 18 Administrative and General Expenses $1,214,715.09 $95,049.26 $1,309,764.35 19 Total Electric Operation and 20 Maintenance Expenses $24,862,701.72 $633,151.46 $25,495,853.18 21 Ratio operating expenses to operating revenues (carry out decimal two places, e.g.: 0.00%) 96.11 %
l Compacte try dwidmg Revenues (acct. 400)into the sum of Operation and Maintenance Expenses (Page 42, hae 20(d). Depreciation (Acct. 403) and Amartizatmn (Acct 407) 22 Total salaries and wages of electric department for year, including amounts charged to oper- $1,446,100.01 ating expenses, constmetion and other accounts.
23 Total number of employees of electric department at end of year including administrative, 35 operating, maintenance, construction and other employees (including part time employees)
/^ N A TAXES CHARGED DURING YEAR ;
L his schedule is intended to give the account dis- 3.he aggregate ofesch khd oftax should be hsted num ber of the appropriate bahnce sheet pInnt accounts E
m trbution of totalta xes c ha rged to opera tions s ad other under the a ppropriate hea ding of
- Federal."" State." and orsubaccount. .@
faelaccounts darbg the year. I.ocaF'in such m anner that the totaltax for each State 5.For any tax which it was nec essary to apportion 0 2.De not metade gasolme and other sales taxes which and for aRsubdivisions ean readily be ascertamed. to e ore than one utihty department or account. state '
have been charged to accounts to whic h the m aterial m a footnote the basis of apportioning such tax. W' en which the tax was levied was charged.If the aetaal 4.no accounts to which the taxes charged were ids. 6. Do not me hide in this schedele entrie: with respect or estan ated amounts ofsuch taxes are known.they .-l ' '
trbuted should bo shown hi coham ns (c)to (h). Show to de ferred incom e taxes.or taxes collected through pay. U should be shown as a footnote and designsted whether both the utility depa rtm ent a nd num ber of a c c ount rob deduc tions or otherwise pendag transm ittalof suc h e stun ated or a c tual am ounts. , charged.For taxes c harged to utility phat show the ta ses to the taxing authority. ~
O
- n Total Taxes Charged Distnbution of Taxes Charged (omit cents)
(Show utility department where applicable and account charged) {U During Year Electric Gas Line Kind of Tax (Acct. 408,409) (Acct. 408,409) o (omit cents) % '
Na. (a) (b) (c) (d) (e) (f) (g) (h) (j) C (k) 1 Real Estate Taxes 513,986.73 513,986.73 O 2 Payroll Taxes $3,039.16 $3,039.16 k 3 Income Taxes $17.24 $17.24 g i 4
5 6
6 g ;
7 4 tn 8 #
9 0 tn 10 **
11 b 12 13 '
14 15 ,
16 ;
17 4 '
18 k I 19 E
- o. >
20 '
8.
21 p
22 3 ,
23 9 )
24 ,X ;
25 ,U !
26 -
27 28 TOTALS 317,043.13 31/,043. !!
kg [
50 Annual report of TOWN OF HUDSON LIGHT AND POWER DEPARTMENT Year ended December 31,1994 OTHER UTILITY OPERATION INCOME (Account 414)
Report below the particulars called for in each column.
Amount Gain or Amount of Amount of of Operating (Loss) from Lire Property Investment Revenue Expenses Operation Nz. (a) (b) (c) (d) (e)
I 2
3 4
5 6
7 8
9 10 11 12 13 .
14 15 16 17 18 19 20 NONE 21 22 0
23 24 25 26 27 28 29 30 l 31 32 l 33 I
34 35 l 36 l 37 I 38 39 40 41 42 43 44 45 46 47 0 48 49 50 51 TOTAIS
51 Annual report of TOWN OF HUDSON LIGHT AND POWER DEPARTMENT Year ended December 31,1994 INCOME FROM MERCHANDISING, JOBBING, AND CONTRACT WORK (Account 415) ;
Report by utility departments the revenues, costs, expenses and net income from merchandising, jobbing and contract work during year, v
Other Electric Gas Utility Line item Department Department Department Total No. (a) (b) (c) (d) (c) 1 Revenues:
2 Merchandise sales, less discounts, 3 allowances and returns 4 Contract work 5 Commissions 6 Other (list according to major classes) 7 8
9 10 Total Revenues NONE 11 12 13 Cost and Expenses:
14 Cost of sales (list according to major 15 classes of cost) 16 17 18 19 20 C 21 22 23 24 25 26 Sales expenses 27 Customer accounts expenses 28 Administrative and general expenses 29 30 31 32 33 l7, so 37 38 39 40 41 42 43 44 45 C. 46 47 48 49 5? TOTAL COSTS AND EXPENSES 51 Net Profit (or Loss)
52 Annual report c f TOWN OF HUDSON LIGHT AND POWER DEPARTMENT Yea ended December 31,1994 SALES FOR RESALE (Account 447)
- 1. Report sales during year to other electric utilities and to cities or other public authorities for distribution to and place and "x*' in column (c) if sale involves export act line.
ultimate consumers.
- 3. Report separately firm, dump, and other power sold t
- 2. Provide subheadings and classify sales s to (1) Assoc same utility. Describe the nature of any sales classified as ated Utilities, (2) Nonassociated Utiolities, (3) Municipaliti Power, column (b).
(4) R.E.A. Cooperatives, and (5) Other Public Authorities. 4. If deliver For each sale <lesignate statistical classification in column ( in column (c),y thus:is made at owned Respondent a substation or leased,indicate RD; cu ownershi thus: firm power, FP, or surplus power, DP; other, G, owned ofleased, CS.
Kw or Kva of Demand (Specify Which)
] Average Monthly i Annual Sales to Point of Contract I' Maximum Maximum Line Delivery Demand Demand Demand No. (a) (b) (c) (d) (e) (f) ~j (g~) (h)
I: Noin~AssociatedUtifitie~s~
2 ; Central Vt. P. S. Corp G X Marlboro-Hudson i 3 Line 3000 lNA NA 4- '
c 5
6 7-8 9
10 11 12l 13, 14-15
- 16. i 17 l I 18 l 19 20' 21 22 i !
23 !
24 :
25 !
26 j 27; 28' 1 l 29 i l
30 I 31 .
l 32 ! l 33 !
34 !
35; l l
38' ,
O! i 39.
40 !
41; !
42I l
4
53 Annual Report of TOWN OF HUDSON LIGHT AND POWER DEPARTMENT Year ended December 31,1994 SALES FOR RESALE (Account 447)- Continued
- 5. If a fixed number of kilowatts of maximum demand 6. The number of kilowan-hours sold should be the is specified in the power contract as a basis of billings to quantities shown by the bills rendered to the purchesers.
the customer this number should be shown in column (f).
The number of kilowatts of maximum demand to be shown 7. Explain any amounts entered in column (n) such as in column (g) and (h) should be actual based on monthly fuel or other adjustments.
readings and should be furnished wt.*her or not used in the determination of demand charges, Show in column (i) type 8. If a contract covers several points of delivery and of demand reading (instantaneous,15,3' 0 to 60 minutes small amounts of electric energy are delivered at each point, integrated.) such sales may be grouped.
Voltage i Revenue Type of at per K W H Demand Which Kilowatt- De;nand Other :
(Cents)
Reading Delivered hours Charges Energy Charges ! Total (0.0000) Line (i) (j) (k) (1) (m) (p)
(n) (o) _ No.
NA 115 KVA 279,800 2500 $12,793.57 0- $15,293.51 5.4658 1
! 2 3
l 4
, S 6
- 7 8
i 9
10 11 pl y , 12
- 13 l 14 ,
i 15 16 l 17 18 19 l 20 21 l 22 23
- 24 25 26 27 28 29
! 30
- 31
, 32 l 33 l 34 35 36 37 38 39 f i 40 i 41 TOTALS 279,800 2500 $12,793.57 0l $ 15,293.51 5.4658 42
54 Annual report of TOWN OF HUDSON LIOHT AND POWER DEPARTMEta Year ended December 31,1994 PURCIIASED POWER (Account 555)
(except interchange power) j 1.Reportpower purchased for tesale durmg the year. Authoritaes.For each purchase designate statisticalclassi-Exclude fromthis schedule and reporton page 56 fication in colunn (b), thus: frm power, FP; dump or parbculars l surplus powe r, DP;other,O,and place and "x"in colunn (c) concernmg mterchange power transachons durmg the year.
dpurchase mvolves QMacross a stak b.
- 2. Provide subheadings and class fy purchases as b
- 3. Re port separately firm, dump, and oter powe r pur-(1) Associated Utihbes.(2)Nonassocated Utibries.(3)
Associaed Nonutihne s. (4) Nonassociated Utihties,(5) Mune.. d hd m copp Describe 6e me ofany chahtie s, (6) R.E A Coope rative s, and (7) Othe r Pubhc purchases classified as Othe r Power, colunn (b).
c Kw or Kva of Demand 3$ j. ! (Specify Which)
- e 8E ] Average ji j Contract Monthly Annual
- $ -g5 Demand Maximum Maximum Lire Purchsed from Point of Receipt Demand Dernr.nd N2. (a) (b) (c) (d) (e) (f) (g) (h) 1 Pilgnm 1 - Boston Edison O Marlboro-Hudson Line 2500 N/A N/A 2 Vermont Yankee O X 578 N/A N/A 3 Maine Yankee O X 1310 N/A N/A 4 Wyman - Yarmouth - CM O X 2102 N/A N/A 5 Point Lepreau O X 2500 N/A N/A 6 MMWEC - Canal O 314i N/A N/A 7 MMWEC - Mix No. I O X 691 N/A N/A 8 MMWEC - Project #3 - M O X 591 N/A N/A 9 MMWEC - Project #4 O X 2109 N/A N/A 10 MMWEC- Project #5 0 X 235 N/A N/A 11 MMWEC - Project #6 O X 15972 N/A N/A 12 Taunton - Cleary Station O 5000 N/A N/A
,, 13 Pasny O X 2521 N/A N/A 14 RFA - Lawrence O 829 N/A N/A 15 N.E. Power Co. O 6000 N/A N/A 16 MMWEC - System O 3500 N/A N/A 17 Northeast Utilities O X 6705 N/A N/A 18 Central Vermont P.S. Co. O X 10000 N/A N/A 19 Com. Electric - Canal O 4000 N/A N/A 20 21 22 Purchased Power Used at Power Plant 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 41 e
42 i
l 4
55 Annual tenort of TOWN OF HUDSON LIGHT AND POWER DEPARTMENT Year ended Decemher 31.1994 J PURCHASED POWER (Account 555) - Continued n
t (except interchange power) 4 lf re.eipt of power is at a substation indicate ownership in column should be furnished whether or not used in the desermination of demand charges. )
(c), thus: re' owned or leased, RS; seller owned or leased SS.
Show in column (i) type of demand reading (instantaneous),15,30, or 60 minutes
- 5. lf a fixed number of kilowens of maximum demand is specified in integrated.
the power contract as a basis of billing. this number should be shown 6.The number orkwhs purchased should be the quantities shown by the power bitts in cohunn (f). The number of kws of maximum demand to be shown 7. Explain any amount entered in column (a) such as fuel and other adjustments.
in columns (g) and (h) should be actual based on monthly readings and Amounts shown in column (n) are decomminioning charges.
Cost Type of per Voltage Demand KWH at Which Kilowatt- Energy Reading Delivered (Cents) hours Charges Total (i) (I) (0.0000) Line (k) (I) (in) (n) (o) (p) No.
NA i15 kv 14,268,800 $1,264,997 $75,000 $66,87i $1,406,868 9.8597 1 NA 115 kv 4,798,886 $142,621 $25,(H2 $13,323 $180,986 NA 3.7714 2 115 kv 9,846,174 $192,349 $46,185 $l9,991 $258,525 2.6256 3 NA 115 kv I,371,719 $99,762 $36,526 $0 $136,288 9.9356 4 NA II5 ky 16,965,200 $615,326 $17,999 $0 5633,325 3.7331 5 NA 115 kv 8,726,104 $141,622 $182,751 30 $324,373 3.7173 6 NA 115 kv 5,477,170 $493,850 $25,140 $0 $518,990 9.4755 7 NA 115 kv 4,818,304 $343,043 $21,384 $0 $364,427 7.5634 8 NA 115 kv i1,369,921 $1,100,657 $68,2% $0 $1,168,953 10.28II 9 NA 115 kv 1,266,355 $139,711 $7,761 $0 $147,472 11.6454 10 NA IIS kv 86,098,030 $11,697,283 $616,050 $0 $12,313,333 14.3015 11 NA 115 kv 3.445,125 $309,368 $105,919 $0 $415,287 12.0543 12 l NA 115 kv 17,814,326 $114,847 $0 $0 $114,847 0.6447 13 NA 115 kv 2,156,053 $0 $176,307 $0 $176,307 8.1773 14 NA Il5 kv 14,536,007 $43,440 $353,960 $0 $397,400 2.7339 15 NA i15 kv 2,100,000 $0 $48,300 $0 $48,300 2.3000 16 NA 115 kv 14,616,000 $41,225 $309,288 $0 $350,513 2.3981 17 NA 115 kv 23,345,050 $146,451 $525,504 $0 $671,955 2.8784 18 NA 115 kv 2,520,070 $12,429 $56,457 $0 $68,886 2.7335 19 20 CHARGED TO ACCOUNT 549 (1,373,604) ($30,44$ ($30,44$ 21 22 23 24 25 26 l
27 28 29 30 31 32 33 34 35 36 37 38 O ':
41 TOTALS 244.165.690 $16.898.981 12.697.869 569.738 519.666.588 8 0546 42
t INTERCHANGE POWER (I cluded in Account 555) 5*
- b. I L Report bekw the kilowatt-hours received and shaEbe furnisked in Part B.Detaas of Setthmaest for coordmation.6r other such arrangem ent.subm k a 3 i delvered darks the year and the net charge etcredk Interchange Power.If setthment for any transmetion copy of the annualsammary of transactions and bil- 32 sader sterchange power agreements. ake incindes credh or debit amounts other than for ings am ong the parties to the agreement.lf the
- 2. Provide subbeadhas and cbseify hiterchanges inerem e at ge neration e apenees. shew see b othe r a m ount of se atlem ent reporte d ni this sche dele for any P.,
com pone nt a m ounts se para te ty,h a ddition to de 64 transaction fars not represent a5of the charges and as to (t) A ssoc hte d Utilities (2)Nonassociated UtiE- or credit for increm e nt generation e xpe nse s.and give credits covered by the agreement. furnish h a feetnote tie s.(3) A ssoc ia te d N onatilities.(4) O ther N on- O i s tiht ie s. (5 ) M u nic ip a lit ie s. (6) R.E .A . Ce e pe ra tive s, a bra f e apla na tion of the factors a nd principle s unde' a description of the other debits and credits and state which suc h othe r com pone nt e m eents were de ter. the amount and accounts in which such other and (7) Other Pubhc A uthoritie s.F or e a ch hiter. m inted.If such settle m ent represe nts the net of debits change across a state Ime place an *x'in column (b). amounts are hchded for the year. I a nd e re dits unde r an inte rc onne e tien, powe r poolin g. O ,
- 3. Particulars of settlem ents for siterchange power
=
A. Summary ofInterchange According to Companies and Points ofInterchange Q j vs O
Interchenge Voltage Kilo vatt-Hours 2:
Acrees at Which Net Amount of C 3 Delivered Difference Settlement C f Llie Name of Company stateIJnes Point ofInterchange Interchanged Received No. (b) (c) (d) (e) (f) (g) (h) i (a) 1 NEPEX Hudson-Marlboro Town Lme ll5 KV 82,096,030 5,003,020 77,093,010 S2,Ilo,421.86 g 2 USED AS STATION POWER AND CHARGED TO (549) (365,135) (365,135) ($12,359.32) c ;
m >
' O 4 $
m t 5 N 6 e I
7 y
8 '
g 10 ,
11 !
12 TOTALS 81,730,895 5,003,020 76,727,875 $2,098,062.54 B. Details of Settlement for Interchange Power
}
Lt;e Name of Company Explanation Amount No. (I) G) (k) <
13 NEPEX Energy Received by H.L.& P. -Economy $2,162,248.21 @
14 -Scheduled Outage $67,767.21 9 i 15 -Unscheduled Outage $161,086.15 [
16 -Deficiency 50.00 e 17 Energy Dollars from NEPOOL ($147,501.38) 0 18 13 Quebec Net Savings Fund NEPOOL Savings
($58,377.12)
($158,735.95) -
{
w' 20 NEPOOL Expenses $68,286.22 .-
21 Other $15,648.52 G TOTAL S2,110,421.86 I 9 9 9
57 Annual renort of TOWN OF HUDSON 1,1GliT AND POWER DEPARTMENT Year ended December 31.1994 ELECTPJC ENERGY ACCOUNT l
Report below the infonnation called for concerning the dispusition of electric energy genwated, purchased, and interchanged denng the year.
I
, Lire Item 1
N r. Kilowatt-hours )
(a) _
(b)
I SOURCES OF ENERGY 2 Generation (excluding station use):
3 Steam 4 0 Nuclear 4,179,752 5 Hydro l 6 O:hcr 0 (DIESEL) 4,257.600 7 Total Generation 8,437,352 8 Purchases {
244,165,690 9 In (gross) 81,730,895 ***** )
1 10 Interchanges Out (gross) *****
5,003,020 11 j Net (kwh) 76,727,875 12 Received 1
13 Transmission for/by others (wheeling) Delivered I4 Net (kwh) 15 TOTAL 329,330.917 16 DISPOSITION OF ENERGY 17 Sales to ultimate consumers (including interdepartmental sales) 306,557,493 18 Sales for resale 279,800 19 Energy fumished without charge 0
20 Energy used by the company (excluding station use): 315,086 21 Electric department only 22 Energy losses:
23 Transmission and conversion losses 11,671,356 24 Distribution losses 8,588,821 25 Unaccounted for losses 1,918,361 i
1 26 Total energy losses j
j 27 Energy losses as percent of total on lin: 15 6.7344 % 22,178.538 28 ;
TOTAL 329.330.917 MONTHLY PEAKS AND OUTPUT se i 1"'I,".Yt.Is. O7"'m*yM ' # "*'* "'*"'
muy t.n . eso. .-. Me.
.,4/.P '7,. .hoia.s
. ~ . b.r me sum or n.c.ond rs
.-6 6*=n-a ,y ,r. e ore,eanc.e .sy n
~. or rapaad.t.
= w I
.eamred by the use or e * ' mes genmaan and pwchase plus - ... .
misseos of =Anding Tasal rar she year should agree wnh has 1$ abows 7M
-,.e.- po , ='EEs. dip
.s . the asese or the amarg.ncy
.-2b..Dn.,.~' Mk ron m.Er78.h!UMI.ch Monthly Output Day of Type (kwh)
Lire Month Kilowatts Day of Week Month Hour of Reading Nr (See Instr. 4)
(a) (b) (c) (d) (c) (O (g) 29 January 49,400 THURSDAY 27 9:00 60 Min. 28,705,900 30 February 46,400 FRIDAY II 9:00 60 Min. 25,704,151 31 March 44,900 WEDNESDAY 2 9:00 60 Min. 27,724,124 32 April 42,800 WEDNESDAY 13 11:00 60 Min. 25,066,293 33 May 43,900 MONDAY 23 14:00 60 Min. 28,894,305 34 June 52,100 FRIDAY 17 16:00 60 Min. 25,401,314 35 July 55,000 THURSDAY 21 16:00 60 Min. 31,566,970 36 August 53,200 THURSDAY 4 15:00 60 Min. 29,287,034 37 September 44,700 TUESDAY 13 15:00 60 Min. 26,220,601 38 October 41,400 MONDAY 31 18:00 60 Min. 26,440,798 39 November 45,000 MONDAY 28 I8:00 60 Min. 26,376,976 40 December 47.500 MONDAY 12 18:00 60 Min. 27,942,451 41 TOTAL 329.330.917
l 58 Annuaireportef TOWN OF HUDSON LIGHT AND POWER DEPARTMENT Year ended December 31,1994 ,
G ENERATING STATION STATISTIC (La rg; Sttions) i
- Limited to 15,200 by Diesel !
(Except Nuclear, See Instruction 10) !
l I. Large stations for this purpose of this schedule are steam and h
- 4. If peak deraand for 60 minutes is not available, give that stations of 2,699 Kw' or more of installed capacity and other station which is available, specifying peric.t 500 Kw' of more of installed capacity (name plate ratings). (* 10,00 i
- 5. If a group of employees attene more than one generating !
and 2,600 Kw, respectively, if annual electric operating revenue of r station, report on line 11 the approximate average number of spondent are $25,000,000 or more.) employees assignable to each station.
- 2. If any plant is leased, operated under a license from the Federa 6. If gas is used and purchased on a therm basis, the B.t.u.
)
Power Commission, or operated as ajoint facility, indicate such fact content of the gas should be given and the quantity of fuel l convened to cy. ft.
i Line Item Plant Plant Plant No. (a) Cherry St. Sta. HLP Peaking (d) 1 Kind of plant (steam, hydro, int. comb., gas turbine) Int. Comb. Int. Comb, 2 Type of plant constmction (conventional, out-door, boiler, full outdoor, etc.) Conventional Conventional 3 Year originally constructed 1897 1962 4 Year last unit was installed 1972 1962 5 Total installed capacity (maximum generator name plate ratings in kw) 16,150* 4,400 6 Net peak demand on plant-kilowatts (60 min.) 15.2 4.4 7 Plant hours connected to load 455 312 8 Net continuous plant capability, kilowatts:
9 (a) When not limited by condensed water 15,200 4,400 10 (b) When limited by condensed water 15,200 4,400 1I Average number ofemployees 12 12 Net generation, exclusive of station use 3,360,672 896,928 13 Cost of plan (omit cents) 14 Land and land rights $5,500 g g 15 Structures and improvements $332,768 16 Reservoirs, dams and watmvays 17 Equipment costs $3,117,779 712,054 18 Roads, railroads and bridges 19 Total Cost $3,456,047 712,054 20 Cost per kw ofinstalled capacity 227 162 21 Production expenses:
22 Operation supervision and engineering $27,089.19 23 Station labor $173,322.59 24 Fuel $161,738.05 25 Supplies and expenses, including water $73,275.94 26 Maintenance $184,981.54 27 Rents $0.00 28 Steam from other sources $0.00 29 Steam transferred - Credit $0.00 30 Total production expenses $620,407.31 31 Expenses per net KWH (5 places) $0.14572 32 Fuel: kind #2 Diesel Natural Gas 33 Unit: (Coal-tons of 2,000 lb.)(Oil-barrels of 42 gals.) (Gas-M cu. ft.) (Nuclear, indicate) 42 Gal M Cu Ft 34 Quantity (units) of fuel consumed 2,571 32,765 35 Average heat content of fuel (B.t.u. per Ib. of coal, per gal. of oil, or per cu. ft. of gas) 140,000 Btu 910 BTU 36 Average cost of fuel per unit, del. f.o.b plant $2.94548 37 A verage cost of fuel per unit consumed $25.3711 j g
$2.94548 38 Average cost of fuel consumed per million B.t.u $4.31414 $3.23679 39 Average cost of fuel consumed per kwh net gen. $0.03799 40 Average B.t.u. per kwh net generation 10,554 41 42
t SEABROOK STATION UNIT # 1 ELECTRIC GENERATING PLANT STATISTICS YEAR ENDING DECEMBER 31,1994 i
l UNIT 1 DESCRIPTION VALUE Kind of Plant Nuclear Type of Plant Construction Fully Contained ,
Year Originally Constructed 1990 l 4
Year Last Unit Was installed 1990 Total Installed Capacity 1197 MW Net Peak Demand on Plant 1157 MW Plant Hours Connected to Load 5467 Net Continuous Plant Capability a: When Not Limited by Condenser Water 1150 b: When Limited by Condenser Water 1150 Avera0e Number of Employees 942 Net Generation Exclusive of Plant Use (KWH) d203,498,000 Fuel: Kind Nudear Unit . Grams Quantity of Fuel Bumed 1,017,066 Average Heat Content of Fuel Bumed 6.18x 10^7 BTU /Gr )
Average BTU per KWH Net Generation 10.125.5 BTU !
4
'i .
59 Annual report of TOWN OF HUDSON LIGHT AND POWER DEPARTMENT Ye r ended December 31,1994 m G ENERATING STATION STATISTICS (Large Stations)- Continued (Except Nuclear, See lustruction 10) 547 as shown on line 24. operation with a conventional steam unit, the gas turbine should be i
- 8. The items under cost of plant and production expenses repr 10. If the respondent operates a nuclear power generating station accounts or combinations of accounts prescribed by the Uniform submit: (a) a brief explanatory statement concerning accounting for t System cost of power generated including any attribution of excess costs to r of Accounts. Production expenses, however, do not include Pure and development expenses;(b) a brief explanation of the fuel accoun Powu, System Control and Load Dispatching, and Other Expens specifying the accounting methods and types of cost units used with classified as *0ther Power Supply Expenses." respect to the various components of the fuel cost, and (c) such additi
- 9. If any plant is equipped with combinations of steam, hydro, information as may be informative concerning the type of plant, kind internal fuel used, and other physical and operating charrteristics of the pla combustion engine or gas turbine equipment, each should be rep Plant Plant Plant Plant Plant Plant Line (e) (f) (g) (h) (i) (i) No.
I 2
3 4
l l 5 i 6 l l 7 l ; 8 i
- 9-10 11
/~'s I b i 4
15 16 17 18
! . 19
! ! 20 l 21 22 l
23 24 25
, 26 l 27 i ! 28 29 30 l 31 j 32 33 34 35 36 37 6irw) 3g u
39 40 41 42
60 Annual report of TOWN OF IRIDSOM LIGHT AND POWER DEPARTMENT Year ended December 31.1994 STEAM GENERATING STATIONS
- 1. Report the information called for concerning g ating stations and equipment at end of year.
lessor, date and tenns oflease, and annual rent. For any generating station, other than a leased station or portion 9
- 2. Exclude from this schedule, plant, the book co thereof for which the respondent is not the sole owner but
- which is included in Account 121, Nonutility Proper which the respondent operates or shares in the operation o 3.' Designate any generating station or portion th fumish a succinct statement explaining the arrangement a for which the respondent is not the sole owner. If s give particulars as to such matters as percent ownership property is leased from another company, give nam by respondent, name and co-owner, basis of sharing outpu BOILERS Rated Max.
Name of Station Location of Station Number Kind of Fuel Rated Rated Continuous and Year and Method Pressure Steam M lbs Steam lastalled of Fidng in Ibs. Temperature
- per hour Line ;
No. (a) I (b) (c) (d) (e) (f) (g) 2 I 3 i
)
4 i 1 I
5 6
l 7
i 8 '
9 .
12
- 13 f
14 l 15 16 17 18 19 20 ,N O T A P P L I CABLE 21 22 ,
~
23 24 25 26 27 28 29 !
30 31 32 33 34 35 '
36 !
37 I O
' Indicate reheat boilers thusly, 1050/1000
61 Annual ter> ort of TOWN OF HUDSON LIGHT AND POWER DEPARTMENT Year ended December 31.1994 STEAM GENERATING STATIONS - Continued expenses or revenues, and how expenses and/or revenues are 5. Designate any plant or equipment owned, not oper-accounts for an accounts afTected. Specify iflesser, ated, and not leased to another company. If such plant or co-owner, or other party is an associate company. equipment was not operated within the past year explain
- 4. Designate any generating station or portion thereof whether it has been retired in the books of account or what leased to another company and give name oflessee, date and disposition of the plant or equipment and its book cost are terms of lease and anr:ual rent and how determined. Specify contemplatert whether lessee is an associated company.
Turbine-Generators * ,
Name Plate Rating i Steam in Kilowatts flydrogen Station l Pressure At at Pressure-- Capacity '
Year at Minimum Maximum Power Voltage Maximum Installed Type- Throttle R.P.M. Hydrogen Hydrogen Factor K.v.- Name Plate p.s.l.g Pressure Pressure Min. Max. Rating-- Line (h) (i) (j) (kL (1) (m) (n) (o) (p) ,_(p) (r) No. l 1 l 2
3 4
l 5 6
I i
7 8
[
' 9 10 l
i 11 12 l 13 f'
14 15 16 17
, 18 NOT APPL ICA BLE i 18 i 20
! '21 ,
1 22 23 24
' 26
! j 27 I i 28 29 30 31 32 j 33
! j i 34 l t 35 I l 36 TOTALS i 37 Note
References:
' Report cross-compound turbine-generator units on two lines - H.P. section and L.P. section
% -Indicate tandem-compount (T.C.); cross compound (C.C.); all single casing (S.C.); topping unit (T), and noncondensing (N.C.). Show back pressures.
-Designate air cooled generators
-if other than 3 phase, 60 cycle, indicate other characteristic.
Should agree with column (m).
l 63 Annual report of TOWN OF HUDSON LIGifT AND POWER DEPARTMENT Year ended December 31,1994 IIYDROELECTRIC GENERATING STATIONS I, Report the information called for concerning gener- lessor, date and terms oflease, and annual rent. For any sting stations and equipment at end of year. .
generating station, other than a leased station or portion
- 2. Exclude from this schedule, plant, the book cost of thereof for which the respondent is not the sole owner but which is included in Account 121, Nonutility Property. which the respondent operates or shares in the operation of,
- 3. Designate any generating station or portion thereof fumish a succinct statement explaining the arrangement and for which the respondent is not the sole owner. If such give particulars as to such matters as percent ownership property is leased from another company, give name of by respondent, name and co-owner, basis of sharing output, i
Water Whecis Name of Station Location Name of Gross Static Stream Attended or Type of Year Head With Line Unattended Unit Installed Pond Full '
No. (a) , (b) (c) (d) (e) (f) (g)
I 2
3 4
5 6
7 8
9 10 11 12 13 14 15 16 17 18 19 20 NOT APP LIC ABLE 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 O
- Horizontal or vertical. Also indicate type of runner - Francis (F), fixed propeller (FP), automatically adjustable propeller ( AP), Impulse (I).
d 63 Annu-l report of TOWN OF HUDSON I lGHT AND POWER DEPARTMENT Year ended December 31.1994 HYDROELECTRIC GENERATING STATIONS (Continued) percent of ownership by respondent, name of co-owner, basis of sharing output, expenses, or revenues, and how SPecify whether lessee is an associated company.
exynses and/or revenues are accounted for and accoun 5. Designate any plant or equipment owned, not oper.
anected. Specify if lessor, co-owner, or other part is an ated and not leased to another company. If such plant associated company, or equipment was not operated within the past year explain
- 4. Designate any generating station or portion thereo whether it has been retired in the books of account or what leased to another company and give name of lessee, dat disposition of the plant or equipment and its book cost are and term oflease and annual rent and how determined. contemplated.
Water-Wheels - Continued Generators Total lastalled Maximum hp. Name Plate Number Generating Capacity of Fre- Rating of of Capacity in Kil-Design Unit at Year quency Unit in Units in Line owatts (name Head R.P.M. Design Head Installed Voltage Phase or d.c. Kilowatts Station plate ratings.) No.
(h) (i) (1) (k) (I) (m) (n) (o) (p) (a) 1 2
I 1 3 4
l 5
6 7
. 8 O I 9
10 11 12 13 14 5 15 16 17 18 19 NOT APPL ICAB LE 20 21 22 23 24 25 26 27 28 29 30 31 32 O 35 36 37 TOTAIM 39
64 Annual rrportef TOWN OF IIUDSON LIGIIT AND POWER DEPARTMENT Year ended December 31,1994 COMBUSTION ENGINE AND OTIIER GENERATING STATIONS (except nuclear stations)
- 1. Report the information called for concerning gen. property is leased from another company, give name of crating stations and equipment at end ofyear. Show ass lessor, date and terms oflease, and annual rent. For any ciated prime movers and generators on the same line. generr. ting station, other than a leased station, or portion
- 2. Exclude from this schedule, plant, the book cost o thereof, for which the respondent is not the sole owner but which is included in Account 121, Nonutility Property, which the respondent operates or shares in the operation
- 3. Designate any generating station or portion thereo of, fumish a succinct statement explaining the arrangement for which the respondent is not the sole owner, and giving particulars as to such matters as percentage owne Prime Movers Diesel or Belted Name of Location of Station Other Type Year 2 or 4 or Direct Lire Station Engine Name of Maker Installed Cycle I Connected N. (a) (b) (c) (d) (c) (f) I (g) 1 Cherry ht Cherry Street, Hudson Diesel Norderg-MFG Co. 1951 2 Direct l
2 Cherry St Cherry Street, Hudson Diesel Norderg-MFG Co. 1955 2 ; Direct 3 Cherry St Cherry Street, Hudson Diesel Norderg-MFG Co. 1960 2 Direct 4 Cherry St Cherry Street, Hudson l Diesel Cooper-Bessemer 1972 4 l Direct 5 i 6
7 I' 8 i f
9 10 Hudson Light Cherry Street, Hudson Diesel Fairbanks-Morse 1962 2 Direct i1 Peaking Plt. Cherry Street, Hudson Diesel Fairbanks-Morse 1962 2 Direct e
12 14 15 16 17 18 19 20 I
21 22 23 24 25 26 i
27 !
28 i 29 30 31 32 33 34 35 36 37 38 39 e
A murlrrport of TOWN OF HUDSON LIGHT AND POWER DEPARTMENT 65 Year ended December 31,1994 COMBUSTION ENGINE AND OTIIER GENERATING STATIONS- Continued (except nuclear stations)
/~)>
ship by respondent, name of co-owner, basis of sharing ou tput, expenses, or revenues, and how expenses and/or Specify whether lessee is an associated member.
revenues are accounted for and accounts affected. Specify i 5. Designate any plant or equipment owned, not oper-lessor, co-owner; or other party is an associated company. ated and not leased to another company. If such plant
- 4. Designate any generating station or portion thereof or equipment was not operated within the past year, explain leased to another company and give name oflessee, date whether it has been retired in the books of account or what and terms oflease and annual rent and how determined. contemplated. disposition of the plant or equipment and its book cost are Prime Movers _ Continued Generators Total Rated hp. Total Installed Rated hp. Name Piste Numbers Generating Capacity ofStation Year Frequency Rating of Unit of Units of Unit Prime Movers Installed Voltage In Kilowatts Phase or d.c. In Kilowatts in Station (name plate rating) Line (h) (1) (j) (k) 4,250 (1) (m) (n) (o) (p) 4,250 1951 4,160 No.
3 ph 60 cyl. 3,300 5,100 9,350 1 3,000 1 1955 4,160 3 ph 60 cyl.
4,250 4,000 1 3,600 13,600 1943 4,160 2 3 ph 60 cyl. 3,250 7,760 21,360 1 3,000 3 1972 4,l60 3 ph 60 cyl. 5,600; I 5,600 4 5
! 6 i
7 l 8 3,168 3,168 1962 4,160 9 3 ph' 60 cyl. 2,200 3,168 6,336 1 2,200 10 1962 4,I60 3 ph 60 cyl. 2,200 1 2,200 11 12 13 i 14 15 16 17 18 19 20 21 22 4 23 l 24 25 26 27 28 29 l 30
, 31 32 33 34 9 ':
37 38 38 TOTAL,S 20,550 6 19,600 39
GENERATING STATION STATISTICS (Small Stations)
- 1. S mall g e n e ra tin g s ta tio n s, fo r th e p u rp o se o f th is e or ope rate d as a joint fseility, and give a concise l
l sche dule are ste am and hydro stations of te ss than 2.500 KW
- and o th e r stations o f le ss th an 400 KW
- stateme nt of the facts in a footnote.
- 5. lf pe ak detaand for 60 tninetes is not avail.
able.give that =hich is available.specifying period.
k installe d capacity (n ame plate ratin g s). (* 10,000 K W 3.1,ist plants appropriately unde r subhe adings for
- 6. lf any plantis equipped with combinations of $
l ste am hydro, nucle ar inte rnalcombustion engine and o an d 2,500 K W , re sp e ctive ly, if an n u al e le c tric op e ra t- gas turbine stations.For nucle ar,se e instruction to ste am, hydro,internalcombustion engine or gas tur- "
j ing re ve nue s o f re sponde nt are 525,000,000 or more.) page 59. bine equipment each should be reported as a separate
- 2. D e sig n a te a n y p la n t le a se d fro m o th e rs, o p e r a te d
- 4. 5pe cify,if total plant cap acity is re porte d in kv a plant. H owe ver,if the e x haust hest from th'e gas h un d e r a lice n se fro m th e Fe detal P ow e r C ommission, in ste a d o f k ilo w a tts. turbine is utilized in a sie am turbine regenerative fe e d (
water cycle. report as one plant.
Z g
m Installed Fuel Cost h Plant Production Expenses Capacity Peak Generation Cost \ Exclusive of Depreciation Per KWH y Name Demand Net Z Excluding Per KW and Taxes Name of Plant Year Plate KW Kind Generation C Station Cost of Plant Ins.
Line Const. Rating-KW (60 Min.) (Omit Cents) of (Cents) O Use (Omit cents) Capacity Labor \
No. (a) (b) (c) (d) (e) (f) (g)
Fuel Other Fuel (0.0000) 4 1
(h) (1) (J) (k) (1) >
2 h 3 m 4 0 5
4 m
6 N 7 0 l m 1 8
>N 9 n 10 11 km l
l l
12 k 13 14 15 NOT APPLICA BLE 16 17 18 $
19 R 20 21 k
8.
22 0 23 3 24 $.
25 4 26 y 27 g 28 TOTALS $
9 9 . O
..~. ._.__ -_ -_ . . .. - .. _ . . - - _ . . - - - _ , _ ~ -
1 67 1 Annual report of TOWN OF ITUDSON I.IGHT AND POWER DEPARTMENT Year ended December 31.1994 l
l TRANSMISSION LINE STATISTICS Report information concerning transmission lines as indicated below, i
Designation Type of Length (Pole miles) Size of 4
Operating Supporting On Structures of On Structures of Number of Conductor Line From To voltage Structure Line Designated Another Line Circuits and Material No. (a) (b) (c) (d) (e) (f) (g) (b) '
. I Marlboro-Hudson Forest Avenue 336.4 MCM 2 Town lines Substation, 115 KV Steel poles 3.2 2 ACSR
, 3 at River Street Hudson " Linnet" 4
5 6
7 i
8 9
10 11
, 12
! 13 14 .
15 3
16 17 l' 18 19 4
f'}
- 22 23 24 i 25 26 27 28 29
]
4 30 31
, 32
- 33 J
34 35 36 37 38 ,
39 40 41 42 ,
43 44 O ::
47 TOTAlE 3.2 None 2
- Where other than 60 cycle,3 phase, so indicate.
SUBSTATIONS
{E L Its port befew the m5sematwo ca5.d for eemserning sabetstione of the respondent es of the end of the year.
d.lsdimita la esbma (b) abs fusethastsh+rseterof esth esb-statem designstag whothertransmisses or detrheten sad whother ressem sisola swnership by the roepsedent. F6r any substetson se equapa eat operated under lease. 3:ee nature of leeser date end pened k
- e 2.substetens which serve but one adsstrister sines rea y a ete ade e or unatte ade d. et lease and annual rent. For any substatson er equipa ent operated @o su.st+mershould not be Ested hereender. 5. show h seksas (0.(D.and (k) spe chlequ em eat such as other them by reasons of sole owmershap or lease, gave nam e of co-owner 3.Substatoes wnh cepeeby of has than 5.000 k=s.easept these rotary convesters.restrars.sendemeers ets, sad aus Amry eqevnea, or other party, exptun besas of shanns expenses of other secounting 3 serwhg sestomers wah energy ferreseh,may be grouped esserdag from heresshg sapacky. between the partees, and state em ounts and accounts affected an C
- 6. De signete subsistu>as er m ajor tems ef equgm ent kn eed from r**Pondent's book of sceount. Specify in each case whether lesser. **
tre feastenetsheraster.but the samber ef sach substations m ust ne shown. ethers.pate e ed wth others.or oper ie4.therw.e th.a by ***"a'r *r 'th'r Per t= =a assectated **= Pany.
Capacity of Number Number Conversion Apparatus and o Character Voltage Substation ofTrans- ofSpare Special Equipment '"
Name and Location of Second- In kva formers Trans- Type of Number Total Z Line ofSubstation Substation Primary ary Tertiary (In Service) In Service formers Equipment of Units Capacity No. (a) (b) (c) (d) (e) (f) (g) (h) 0 (1) (J) (k) '
1 Cherry Street, Hudson, MA Unattended 13800/ 4160/ Not Brought 19,200 2 None None None None 2 Distribution 8000 2400 Out 3 -
h 4 4 5 Forest Avenue, Hudson, MA Unattended 6 13.8 Distribution g
7 A DieselTie 115 KV 13800/ NA 120,000 3 None None None None O 8 Tie with NEPCO 8000 4 m
! ;c 10 C m
11 **J l 12
- c a
13 g 14 m 15 k 16 17 18 19 20 21 22 <
2 B 24 0 25 k 26 C 27 k 28 3 29 X
30 -
31 G e
32 TOTALS 139,200 $ None None
- None None O O O
69 Annualreportof TOWN OF HUDSON LIGHT AND POWER DEPARTMENT Year ended December 3 I.1994 OVERHEAD DISTRIBUTION LINES OPERATED b'
V Line Length (Pole Miles)
No. Wood Poles Steel Towers Total 1 Miles - Beginning of Year 181.8 181.8 2 Added During Year None None 3 Retired During Year None None 4 Miles - End of Year 181.8 '
181.8 5
6 i 7
-8 Distribution System Characteristics - A.C. or D.C., phase, cycles and operating voltages for Light and Power.
9 10 Primary distribution at 2400/4160Y,4800/8300Y,8000/13800Y volts,60 cycle, 11 3 phase secondary power at 600 volts,60 cycle,3 phase 3 wire; 480 volts 3 12 phase,3 wire; 277/480 volts,3 phase 4 wire; 220 volts,3 phase 3 or 4 wire, J 13 120/208 volts, 3 phase, 4 wire lighting, heating and air conditioning l 14 120/240 colts,120/208 volts,60 cycle single or three phase. l 15 ELECTRIC DISTRIBUTION SERVICES, METERS AND LINE TRANSFORMERS Line Transformers Number of Total g Line Electric Watt-Hour Capacity
.U No. Item Services Meters Number (kva) 16 Number at beginning ofyear 7,804 10,688 3,282 % ,506.5 17 Added during year:
18 . Purchased 206 41 1,500.0 19 Installed 107 l 20 Associated with utility plant acquired None None None None 21 Total additions 107 206 41 1,500.0 j 22 Reductions during year:
i 23 Retirements 32 181 68 671.5 24 Associated with utility plant sold None None None None 25 Totai reductions 32 181 68 671.5 26 Number at End of Year 7,879 10.713 3.255 97.335.0 27 in stock 519 391 17,397.0 28 Locked meters on customers' premises None None None 29 Inactive transformers on system None None None 30 in customers' use 10,169 2,856 79,804.0 31 in company's use 25 8 134.0 32 Number at End of Year 10.713 3.255 97.335.0 O
V
E CONDUIT, UNDERGROUND CABLE AND SUBMARINE CABLE -(Distribution System)
Report below the information called for concerning conduit, underground cable, and submarine cable at end of year.
fE ;
[
Miles of Conduit Underground Cable Submarine Cable Bank ( All Sizes Operating $
Line Designation of Underground Distribution System and Types) Miles a operating voltage Feet
- Voltage '
No. (a) (b)
Route 493 Underpass (c) (d) (e) (f) $
l 0.10 0.10 13,800 2 Harvard Acres Estates, Stow 6.50 6.50 13,800 3 Meadowbrook Mobile Home Park, Hudson 1.80 1.90 13,800 4 Colburn and Margaret Circle, Hudson 0.00 0.20 4,800 x 5 Main, Felton and Central Street, Hudson 0.70 0.70 13,800 C 6 Seven Star Lane, Stow 0.00 0.09 4,800 8 7 Forest Avenue, Hudson 1.50 1.50 13,800 8 Juniper Estates, Stow 0.50 0.50 13,800 e.
9 Carriage Lane, Stow 0.19 0.33 4,800 5 10 Brigham Circle, Hudson 0.90 0.90 13,800 11 Rustic Lane, Hudson 0.00 0.20 4,800 12 Wildwood Subdivision, Stow 0.00 0.60 13,800 13 Birch Hill Estater, Stow 3.60 3.60 13,800 h-14 Appleton Drive, Hudson 0.10 0.10 13,800 o 15 Cedar Street, Hudson 0.03 0.03 4,800 4 16 Country Estates, Hudson 0.00 0.34 4,800 E 17 Deacon Benham Drive, Stow 0.00 0.07 8,320 t:r 18 Forest Road, Stow 0.00 0.22 8,320 m 19 Francis Circle, Stow 0.00 0.10 4,800 20 Karen Circle, Hudson 0.00 0.07 8,320 21 Main Street, Hudson (Whispering Pines) 0.11 0.11 13,800 22 Glen Road, Hudson 0.24 0.24 13,800 23 Brigham Street, Hudson (Valley Park) 0.14 0.14 13,800 24 Brigham Street, Hudson (Assabet Village) 0.23 0.23 13,800 25 Chapin Road, Hudson 0.07 0.07 13,800 26 Cahill Raylor Road, Stow 0.25 0.25 13,800
- 27 28 Great Road, Stow Kane Industrial Drive, Hudson (Digital) 0.07 0.05 0.07 0.05 13,800 13,800 fg, 29 Peter's Grove, Hudson 0.05 0.05 13,800 8.
30 Johnston Way, Stow 0.20 0.20 13,800 p 31 Hudson Town Hall, Hudson 0.08 0.08 13,800 R 32 Sudbury Road, Stow (Off Po'e 121) 0.23 0.23 13,800 33 Parmenter Road, Hudson (Off Pole 16-1) 0.10 g
~
0.10 13,800 -
34 TOTALS 17.74 19.87 None None 5 G
- Indicate number of conductors per cable. g O O O
O O O
! CONDUIT, UNDERGROUND CABLE AND SUBMARINE CABLE -(Distribution System)
Report below the information called for concerning conduit, underground cable, and submarine cable at end of year.
(g l Miles of Conduit Bank ( All Sizes Underground Cable Submarine Cable operstmg fa-Line Designation of Underground Distribution System and Types) Miles a operstmg voltage Feet
- Voltage 2, ,
, No. (a) (b) (c) (d) (e) (f) g l 1 lechnology Unve, Hudson - 0.25 0.25 13,500 q 2 Reed Road, Hudson 0.11 0.11 13,800 % i 3 Central St. Hudson 0.06 0.06 13,800 0
- I 4 Washington St., Hudson 0.10 0.10 13,800 5
6 Barton Road, Stow Causeway St. Hudson 0.26 0.12 0.26 0.12 13,800 13,800 f m
0 7 Off Harvard Rd., Stow 0.07 0.07 13,800 0.05 0.05 13,800 8 Off River Rd. Hudson -
9 Hazelwood Drive, Hudson 0.24 0.24 4,160 h 10 Maura Drive, Stow 0.19 0.19 13,800 g 11 Shay Rd. Hudson 0.07 0.07 13,800 12 Ashford Meadows, Hudson 0.99 0.99 13,800 13 Indian Ridge Estates, Hudson 1.31 1.31 13,800 14 Boxmill Rd., Stow 0.13 0.13 13,800 3 15 Brigham Estates, Hudson 0.61 0.61 13,800 :E!
16 October Lane, Stow 0.24 0.24 13,800 %
17 Santos Drive, Hudson 0.12 0.12 8,320 c.,
18 Kerrington Way, Stow 0.07 0.07 13,800 to 19 Bennett St., Hudson 0.39 0.39 13,800 ,
20 Solo Rd., Hudson 0.28 0.28 13,800 21 Cabot Rd., Hudson 0.22 0.22 13,800 ,
22 Beechnut Rd., Hudson 0.14 0.14 13,800 g 23 Bonazzoli Ave., Hudson 0.16 0.16 13,800 24 Red Acre Estates, Stow 1.08 1.08 13,800 25 Merritt Drive, Hudson 0.09 0.09 13,800 -
26 Orchard Drive, Hudson 0.50 0.50 13,800 <
27 Annie Terrace Drive, Hudson 0.20 0.20 13,800 2 28 Heath Hen Trail, Stow 0.26 0.26 13,800 ?
29 Appleblossom Lane, Stow 0.34 0.34 13,800 1 -
30 Walmart, Hudson 0.97 0.97 13,800 1 '
31 Blueberry Lane, Hudson 0.58 0.58 13,800 E 32 Stow Farms, Stow Forance Woods, Hudson 0.86 0.86 13,800 l 33 0.21 0.21 13,800 f l' 34 TOTALS 11.30 11.30 None None S
- Indicate number of conductors per cable. S2
CONDUIT, UNDERGROUND CABLE AND SUBMARINE CABLE -(Distribution System)
Report below the information called for concerning conduit, underground cable, and submarine cable at end of year. (g Miles of Conduit Underground Cable Submarine Cable Bank ( AllSizes ha operatmg Line Designation of Underground Distribution System and Types) Miles
- Uperstmg voltage Feeta Voltage 2, No. (a) (b)
I Cranberry Lane, Hudson (c) (d) (e) (f) g 0.24 0.24 13,500 y 2 Z 3
2
' i 9
r 10 o 11 y
12 13 0
14 15 3
4 16 17 18 e
Ej 19 20 g
21 22 '
23 g
24 i 25 26 27 3 !
28 j ;
29 1 <
30 5 -
31 32 f
j [
33 7 34 TOTALS 0.24 0.24 None None S
- Indicate number of conductors per cable.
5g 9 O O
71 Annual report of TOWN OF HUDSON 1IGHT AND POWER DEPARTMENT Year e.nded December 31,1994 STREET LAMPS CONNECTED TO SYSTEM f
City Type or Total Incasdescent Mercury Vapor Fluorescent H. P. Sodium Line Town Municipal Other Municipal Other Municipal Other Municipal Other No. (a) (b) (c) (d) (e) (f) (2) (h) (i) (i)
I 11udson 1,925 388 15 901 225 270 126 2 Stow 75 4 2 6 32 20 11 3 Berlin i I 4 Marlboro 4 1 3 5 Bolton i I 6
7 8
9 10 11 12 13 14 15 16 17 18 19 20 rw 21 d 22 23 24 25 26 27 28 29 30 31 32 33 34 35 ,
36 1 37 38 39 40 41 42 43 44 45
/* A6 (h) 47 48 49 50 51 52 TOTAL. 2006 393 17 907 259 290 140
4a,.Assa-4_-m.JL.e ep.3m ha,.4 dh.wwme,m.ms,.ea.ea,ae4em., ara = ma m ,e.a,,m+4ma sgm6-e.wm-me.py.,-was . --- m---------wy----- - - - -- - - - - - -
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i 79 Annuti r".Dortef TOWN OF HUDSON LIGHT AND POWER DEPARTMENT Ye*r rnded December 31.1994 i
RATE SCHEDULE INFORMATION
- 1. Attach copies of all Field Rates for General Consumers.
I
- 2. Show below the changes in rate schedule during year and the estimated increase or decrease in annual revenue predicted t
on the previous year's operations.
Estimated
- Date M.D.P.U. Rate Effect on Effective Number Schedule Annual Revenues Increases Decreases ;
02/01/94 149 Domestic Rate "A" $607,390 02/01/94 150 Commercial All Electric Rate "G"
)
$174,110 1 02/01/94 151 Commercial and Industrial Rate "D" $3,305,786 02/01/94 152 l
Residential Water Heater Rate "E" $141,184 !
02/01/94 153 Residential All Electric Rate "F" $232,918 02/01/94 154 General or Commercial Rate "C" $400 02/01/94 155 Street Lighting Schedule $3,992 02/01/94 156 Service Charges $5,100 0
O
l Annualreportof TOWN OF HUDSON LIGHT AND POWER DEPARTMENT Year ended December 31,1994 I f
I THIS RETURN IS SIGNED UNDER THE PENALTIES OF PERJURY 1
Mayor l
\
l Manager ofElectric Light 4 ORST NER Y T4DEPEANTE-Selectmen l
W '"
l KfWR R. KEANE ofte l Municipal l Light i Board
- G.P S
^o SIGNATURES OF ABOVE PARTIES AFFIXED OUTSIDE THE COMMONWEALTH OF MASSACHUSETTS MUST BE PROPERLY SWORN TO ss 19 Then personally appeared and severally made oath to the truth of the foregoing statement by them subscribed according to their best knowledg and belief O
Notary Public or Justice ofthe Peace.
1 INDEX P:g2 Appropri:tions cf Surplus 21 Appropriations Since Beginning of Year 5
gm Bonds 6'
Q Cash Balances Changes in the Propeny 14 5'
Combustion Engine and Other Generating Stations 64-65 Comparative Balance Sheet ,
10 11 Conduit, Underground Cable and Submarine Cable 70 Cost of Plant 8-9 Customers in Each City or Town 4
Depreciation Fund Account 14 Earned Surplus 12 Electric Distribution Services, Meters and Line Transformers 69 i Electric Energy Accounts l 57 Electric Energy Purchased 22 l Electric Operating Revenues 37 l Electric Operation and Maintenance Expenses 39-42 l GeneralInfonnation 3-Generating Station Statistics 58-59 Generating Station Statistics (Small Stations) 66 Hydroelectric Generating Stations 62-63 Income from Merchandising, Jobbing and Contract Work 51 Income Statement 12-13 Materials and Supplies 14 Miscellaneous Credits to Surplus 21 Miscellaneous Debits to Surplus 21 Miscellaneous Nonoperating income 21 Monthly Peaks and Output 57 7 Municipal Revenues (V Other Income Deductions 22 21 Other Utility Operating income 50 Overhead Distribution Lines Operated Production Fuel and Oil Stocks 69 +)
18 Rate Schedule Information 79 Sales of Electricity to Ultimate Consumers 38 Sales for Resale - Electric 22 Schedule of Estimates l 4 !
Steam Generating Station 60-61 l Street Lamps 71 Substations 68
) Taxes Charges During Year 49 Town Notes 7 Transmission Line Statistics 67
' Utility Plant - Electric 15-17 FOR GAS PLANTS ONLY: Page Boilers 75 Gas Distribution Services and House Governors and Meters 78 Gas Generating Plant 74 Gas Operating Revenues 43 Gas Operation and Maintenance Expenses 45-47 Holders 76 Purchased Gas 48 Purifiers 76 -
Record of Sendout for the Year in MCF 72-73 Sales for resale 48 Sales of Gas to Ultimate Consumers 44 Sales of residuals 48 scrubbers, Condensers and Exhausters 75 Transmission and Distribution Mains 77
amiguwis rnUM UMAPTER 164 OF THE GEN 5RAL IAWAS AMENDED _
EcCTION fag.
shr.!! appoint a snanager of saunicipal lighting who shall, under the direction and contro board,if any, and subject to this cbspter have full charge of the speration and management of the plant, I distnbution of gas or electricity, the pur,cl,ue of supplics, the employment c,f agents and servants, the methoo.the, snanufacture
, tame, price, eur ntit and and quality of the supply, W collecuon of bills, anel the keeping of accounta. lise compensation and term of etce shall be nae la cit,as by the city council and in towns by W selectmen or sounicipalligM hoard,if any; and' before entennt upon W perform of his oscial duties, he shaU give bond to the city or town for the faithful performance thereof in a sure and ferro and with sureties to the estiafsetion of the mayor, selectmen or municipal light board, if any, and shall, at the end of each sounicipal year, render to them such detailed statement of his doings and of W business and financial matters in his charge as the department may p scribe. All anoneys payable to or received by the city, town, manager or municipal Eght board in commeetion with the operation of the plant, for the sale of rsa or electricity or otherwise, shall be paid to the city or town treasurer. AD accounts rendered to or and in towns they shall be subjnt to the inspecticm of the selectmen. The se& tor or oE may require any person presenting for acttJenient an account or claim against auch plant to make oath before him er them,in such formseasperjury.
chte he or byThemay au& prescribe, tor or cSect as to the having accurney similar ofcities, duties in such and account or claim. The wilful making of a false oath shau be( punish.
au biUs or pay rolls of such plants before they are paid by the treasurer,2nd may &ullcw and refuse to approve for p men, shall trbsle Siepart,th er in wi any claim the cityas fredulent, or townunlawful trepertroraextenive; wnst and in that case the se ditor or omeer having duties, or the select, any clairs or bill so dia llow e d. This section shau not abridgr the powers conferred on town secountantaen statement of the rens for by sections Aftp6ee Eght board, if amy, or department, ma! e a stater .ent to such emeers of his doings, bu of the ladebtedneu of the town la his department.
I Sterson 57, At the krinning of each Ascal year, the manager of municipa! Ughting shaU furnish to the mayor, selectmen er municipal light board,if any, an estiinate of the income from sales of gas and electricity to pdeste consumers during W ensuing i escal year, enf of the aspense of the plant during sam year, muning the gross erpenses of operation, anaintenance and repair, b interest on the conds, notes or certi8 cates of indebtedness taaved to pay for the plant, an amount for depre istion equal to three per cest of @ cost of the plaat asclusive of land and any water power appurtecent thereto, or such smaUer ar larger amount as .
the departasent may approve, the requirements of the sinking fund or debt incurnd for W plant, and the loss,if say,in the opers-tion of the plant during the peneding year, and of the costs, as defined in section 68l of the gas and electric town. The electriejtr to town be usedshsU snelude by the town asinabove its annual de6nedappropriations and estimatedand in the tax levy not eas than the estimated cost of the gas and By cost of the plant la latended b total amount empendM Ames in operation is intended the &frerence between the actual income from private censum anace for the preceding 6 seal year and W actual expense of the plant, reckoned as above for that year in case such eseeeded the amount of such income and appropriation. The income from sales and the,anoney appropriated as afo shan be used to pay the annual erpense of W plant, denned as above for the 6 scal year, ascept that no part of b sua therala lacluded ments and ad&tions. The surplus if any, of said annual aUowances for depreclation af ter kept as a separate fond and used for nnevals owr than ordinary repairs aztensions, reconstrvetions, enlargements and ad&tio in ereceeding years; and no debt shall be incurred under section forty for an,y artena%, rveonstruction or enlargements sf the in shauescess be keptof and the managed amount needed therefor by the town in addition treasurer as a se to the amount then on band in said depredation fund. Said depreciation fund e mInicipal !!ght board, if any, for the foregoing purpose.parate fund, subject to approprist4on by the city council or selectmes or So anuch of said fund as the departmeat may from time to time approve may also be used to pay notes, bonda or certi6 cates of indebtedr.eas issued to pay for the cost af reconstruction er renewala is escens af ardinary repairs, when such notes, bonds or certincates of Indebtedness become due. AU sppropriations for the plant shall be either for the annual erpense de6ned as above, or for estensions, reconstruction, enlargementa or ad&tiesa; and se appropriatio sisu be used for any purpou other than that stated in b vote snaking the aarne. No bonda, actes or eartiacatas of 6adebtedaeas ahan be laaned by a town for the annual aspenses as deAmed in this section.
I Section &$.
A town manufacturing or seHing gas or electricity f r Ughting shan keep records of its work and delage at its manufacturing station, and in respect to its distrsbuting plant, as may be required by the department. It shau (natall and mala.
tain apparatus, natisfactory to the department, for W measurement and recording of & ou ut of gas and electricity, and shall sell the same by meter to private consumers when required by the department, and,if requ by it shau measure au gas or slee-tricity consumed by the lawn. The books, accour te and nturns shaU be made and kept is a form ,pesacribed by b department and the accounta shan be closed annuaUy on the last day of the Sacal year of such town, and a balance sheet of that data shau be taken Wrefrom and included la the return to W department. ne unayor, selutmen or municipal light boad and managar infermation required by it relative to b condition, management and operation of sold busin
, la its annual nport, deserW the operation of the several municipal plants with such detail as may be necessary to &eclose the anancial eenditirn and results of each plant; and shaU state what towns,if any, operating a plant have failed to comply with this chaptar, and what towns if any, are puing gas or electricity with the approval of the department at less than cost. The mayor, or selectm er municipal IIgbt board, if any, abau annuaUy, on or before such date as the department 6:ea, anahe a return to th far b preceding Sacal year, signed and sworn to by the mayo., or by a majority of W selectmen or anunleipal light board, if an and by the manager, stating the Anancial condition of said business, the armount of sub 1%e unayor, the selectmen e ik vnunicipal light bord enay direct any additional returns to be inade at such time and in such detail as hs er they snay order. / e oEcer of a town manufacturing or selling gas or electrielty for Ughting who, being required by sectits to make an avual aturn to the department, neglects to make such ann al return shall, for h Bret afteen days or portion
! therect during which such neglect continues, forfeit See dollars a day; for & enond Af teen days or any portion Wreof ten douars ,
a day; and for each day thereafter not more than fifteen dollars a day. Any such oEcer who unreasonably refuses or neglects to make such return shau, is addition thereto, forfelt not snor, than ave hundred do!!ars.
stroneous, the department shau notify the oEcer to amend it within af teen days. If a return la defective or appears to be return within W tirne specined. when notined to do so, shall forfeit Afteen dollan for each day during which such neglect co b attorney general, et b relation of the dyartment, and wMa so rnovered shaU be paid to 6 Sect 1oM g9.
The sopnme judicts) court for the county whers b town la situated shall have jurisdiction on petition of b department or of twenty tarable inhabitan's of W town to compel the Bring of prices by the town in cortpflamee with entier.s tity.seven and f.fty.elght, to preter.t any town from purchasing, operating or sellitig a gas or electric plant la violation of any provision of this er distribution of chapter, and geners!!y gaa or electricity to enforte compliance with & terma 2nd provisions thereof nlative to 6 nr.anufacture by a town.
SECURITIES AND EXCHANGE COMMISSION i Washington, D.C. 20549 l
l FORM 10-K
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [ FEE REQUIRED]
FOR THE FISCAL YEAR ENDED DECEMBER 31,1994 OR
[] TRANSfrION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from to Commission File Number 1-6788 THE UNITED ILLUMINATING COMPANY (Exact name of registrant as specified in its charter)
Connecticut 06-0571640 (State or otherjud4iction ofincorporation or organization) (1.R.S. Employer Identification No.)
157 Church St.% New Haven, Connecticut 06506 (Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 203-499-2000 Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange on Title of each class which reristered Common Stock, no par value New York Stock Exchange See:rities registered pursuant to Section 12(g) of the Act: Common Stock, no par value Indicate by check mark whether the registrant (1) has filed all ieports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No __
Indicate by check mark if disclosure of delinquent filers pursuant to item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Fart III of this Form 10-K or any amendment to this Form 10-K. [ ]
The aggregate market value of the registrant's voting stoca held by non-affiliates on February 28,1995 was $465,741,221, computed on the basis of the average of the high and low sale prices of said stock reported in the listing of composite transactions for New York Stock Exchange listed securities, published in The Wall Street Journal on March 1,1995.
The number of shares outstanding of the registrant's only class of common stock, as of February 28,1995, was 14,086,691.
POCUMENTS INCORPORATED BY REFERENCE Part of this Form 10-K into Document which documena is incoroorated Definitive Proxy Statement, dated Med 29,1995, for Annual Meeting of the Shareholders to be held on May 17,1995. HI
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THE UNITED ILLUMINATING COMPANY FORM 10-K '
December 31,1994 TABLE OF CONTENTS PAEt GLOSSARY 4 Part I Item 1. Business. 6 ;
1
- General 6
- Franchises, Regulation and Competition 6 1
- Franchises 6 i 1
- Regulation 7 )
- Competition 7 I l
- hw 8
- Financing 9 l 1
- Fuel Supply 11
]
- FossilFuel 11 l
- Nuclear Fuel 12
- Arrangements with Other Utilities 12
- Hydro-Quebec 13
- Environmental Regulation 13
- Employees 16 Item 2. Properties. 17
- Generating Facilities 17 l 1
- Tabulation of Peak Loads, Resources, and Margins 18 !
- Transmission and Distribution Plant 19 I
- Capital Expenditure Program 21
- Nuclear Gcneration 22 ;
- General 22
- Insurance Requirements 22
- Waste Disposal and Decommissioning 23 )
)
Item 3. Legal Proceedings. 24 !
Item 4. Submission of Matters to a Vote of Security Holders. 25 Executive Offi rs of the Company 26 l
t
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TABLE OF CONTENTS (continued) f.AES Part II Item 5. Market for the Company's Common Equity and Related Stockholder Matters. 29 Item 6. Selected Financial Data. ,
30 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. 34
- Major Influences on Financial Condition 34 Liquidity and Capital Resources 34
- Results of Operations 36
- Outlook 38 InDation 39 Item 8. Financial Statements and Supplementary Data. 40
- Consolidated Statements for the Years Ended December 31,1994,1993 and 1992 40 Income Statement 40 Cash Flows 41 Balance Sheet 42
- Retained Earnings 44 Notes to Consolidated Financir.1 Statements 45 Statement of Accounting Policies 45
- Capitalization 49
- Rate-Related R:gulatory Proceedings 53 Accounting for Phase-in Phn 54
- Income Taxes 55
- Short-Term Credit Arrangements 56
- SupplementaryInformation 58 Pension and Other Benefits 59
- Jointly Owned Plant 62
- Unamortized Cancelled Nuclear Project 63 Fuel Financing Obligations and Other Ixase Obligations 63
- Commitments and Contingencies 64
- Capital Expenditure Program 64 Seabrook 64
- NuclearInsurance Contingencies 64 I
-2 l
, TABLE OF CONTENTS (continued)
._Pms Part II(continued)
- Other Commitments and Contingencies 65
- Hydro-Quebec 65
- Reorganization Charge 65
- Site Remediation Costs 66
- Property Taxes 66
- Environmental Concerns 66
- Nuclear Fuel Disposal and Nuclear Plant Decommissioning 66
- Property Tax Settlement 68
- Fair Value of FinancialInstruments 69
- Quarterly Financial Data (Unaudited) 70 Report ofIndependent Accountants 71 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures. 72 l
Part HI Item 10. Directors and Executive Officers of the Company 72 !
Item 11. Executive Compensation. 72 Item 12. Security Ownership of Certain Beneficial Owners and Management. 72 I Item 13. Certain Relationships and Related Transactions. 72 Part IV l
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K. 73 l Consent ofIndapaadant Accountants 79 ,
Signatures 80 4
3-
GLOSSARY -
Certain capitalized terms used in this Annual Report have the following meanings, and such meamngs shall apply to terms both singular and plural unless the context clearly requires otherwise:
"AFUDC"means allowance for funds used during construction j " Company" or "UI" means The United Illuminating Company.-
"CSC" means the Connecticut Siting Council.
" Connecticut Yankee" manns the Connecticut Yankee Atomic Power Company.
" Connecticut Yankee Unit" unaans the nuclear electric generating unit owned and operated by Connecticut Yankee.
"DEP" means the Connecticut Department of Environmental Protection.
" DOE" means the United States Department of Energy.
"DPUC" means the Connecticut Department of Public Utility Control.
" EPA" means the United States Environmental Protection Agency.
"FERC" means the United States Federal Energy Regulatory Commission.
"FCA" means fossil fuel adjustment clause.
"LLW" means low-level radioactive wastes.
" Millstone Unit 3" means the nuclear electric generating unit located in Waterford, C==%2t, which is -
jointly owned by UI and thirteen other New England electric utilities.
"NDFC" means the Nuclear Decommissioning Finance Committee.
"NEPOOL" means the New England Power Pool.
"NRC" means the United States Nuclear Regulatory Commission.
"PCBs" means polychlorinated biphenyls.
" Preferred Stock" means capital stock of the Company having preferential dividend and liquidation rights over i shares of the Companys other classes of capital stock.
l l
"RCI" means Research Center, Inc., a wholly-owned subsidiary of UI.
" RCRA" means the federal Resource Conservation and Recovery Act.
"Seabrook Unit 1" means nuclear generating unit No. I located in Seabrook, New Hampshire, which is jointly owned by UI and eleven other New England electnc utilities.
"SEC" means Securities and Exchange Commission.
i 4
GLOSSARY (continued)
'50 2"means sulfur dioxide.
' SPI"means Souwestcon Properties, Inc., a wholly-owned subsidiary of URI.
"TSCA" unamns the federal Toxic Substances Control Act.
"UEI" inanna United Energy International, Inc., a wholly-owned subsidiary of UI.
"UI" or " Company" means The United Illununating Company.
"URI" means United Resources, Inc., a wholly owned subsidiary of UI.
l l
5
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PARTI Item 1. Business.
GENERAL The United Illuminating Company is an operating electric public utility company, incorporated under the laws of the State of Ca-imt in 1899. It is engaged principally in the pr~leia= purchase, transmission, distribution and sale of electricity for residential, commercial and industnal purposes in a service area of about 335 square miles in the southwestern part of the State of Connecticut. d population of this area is approximately 711,000 or 22% of the population of the State. The semce area, largely : when and suburban in character, includes the principal cities of Bridgeport (population 142,000) and New Haven (p pulation 130,000) and their surrounding areas. Situated in the semcc area are retail trade and semcc centers. as well as large and small industnes producing a wide variety of products, including helicopters and othr. transportation equipment, electncal equipment, chemicals and pharmaceutacals. Of the Company's 1994 retail electric revenues, approximately 41%
was derived from residentsal sales, 40% from commercial sales,17% fron. industnal sales and 2% from other sales.
UI has three wholly-owned subsidianes Research Center, Inc. (RCI) has been formed to participate in the development of one or more regulated power production ventures, including possible participataan in arrangements for the future development of ir'-i-- '- =t power production and cogeneration facilities. United Energy International, Inc. (UEI) was formed to facilitate participation in a joint venture relating to power production
! plants abroad. United Resources, Inc. (URI) serves as the parent corporation for several g :.u. businesses, each of which is incorporated separately to participate in business ventures that will complement and enhance UI's electric utility business and serve the interests of the Company and its shareholders and customers.
Four wholly-owned subsidiaries of URI have been incorporated. Souwestcon Properties, Inc. (SPI) participated as a 25% partner in the ownership of a medical hotel building in New Haven, which has recently been sold. SPI no longer owns any property and is currently inactive. A second wholly owned subsuhary of URI is Thermal Energies, Inc., which is participating in the development of distnct heating and cooling facilities in the downtown New Haven area, including the energy center for an office tower and participation as a 37% partner in the energy center for a city hall and office tower complex. A third URI subsidiary Precision Power, Inc., provides power-related equipment and services to the owners of commercial buildings and industnal facilities. A fourth URI subsidiary, American Payment Systems, Inc., manages agents and equipment for electronic data processing of bill payments made by customers of utilities, including UI, at neighborhood businesses In addition to these subsidiaries, URI also has a 90% ownership interest in Ventana Corporation, which offers energy conservation engineering and project management semces to governmental and private institutions.
The Board of Directors of the Company has authonzed the investment of a maximum of $18.0 million, in the aggregate, of the Company's assets in all of URI's ventures, UEI and RCI, and, at December 31,1994, approximately $14.5 million had been so invested FRANCHISES, REGULATION AND COMPETITION Franchises Subject to the power of alteration, amendment or repeal by the Connecticut legislature, and subject to certain approvals, permits and consents of public authorities and others prescribed by statute, the Company has valid franchises to engage in the production, purchase, transmission, distribution and sale of electncity in the area served by it, the right to erect and maintain certain facilities on public highways and grounds, and the power of eminent domain.
6-
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- ~ Regulation i
The Company is subject to regulation by the Connecticut Department of Public Utility Control (DPUC), which has jurisdiction with respect to, among other things, retail electric semce rates, accounting procedures, certain dispositions of property and plant, mergers and consolidations, the um=nce of securities, certain standards of service, management efficiency, operation and construction, and the location and construction of certain electric ,
~
fhcilities. See " Rates". The DPUC consists of five Commissioners, appointed by the Governor of Connecticut with the advice and consent of both houses of the Connecticut legislature.
The locatson and construction of certain electric facilities is also subsect to regulation by the Connecticut Siting Council with respect to environmental compatibility and public need. See " Environmental Regulation".
UI is a "public utility" within the meaning of Part II of the Federal Power Act and is subject to regulation by the Federal Energy Regulatory Commission (FERC), which has jurisdiction with respect to interconnection and coordination of facilities, wholesale electric service rates and accounting procedures, among other things. See
" Arrangements with Other Utihtics".
The Company is a holder of licenses under the Atomic Energy Act of 1954, as ==4A and, as such, is subsect to thejurisdiction of the United States Nuclear Regulatory Commission (NRC), which has broad regulatory ,
I and supervisoryjurisdiction with respect to the construction and operation of nuclear reactors, including matters of public health and safety, financial qualifications, antitrust considerations and environmental impact. Connecticut Yankee Atomic Power Company (Connecticut Yankee) is also subject to this NRC regulatory and supervisory jurisdiction. See item 2. Properties " Nuclear Generation".
The Company is subject to the jurisdiction of the New Hampshire Public Utilities Commission for limited purposes in connection with its ownership interest in Seabrook Unit 1.
Conspetition The electric utility iulustry has become, and can be expected to be, increasingly competitive, due to a variety of economic, regulatory and technological developments; and UI is exposed to competitive forces in varymg degrees.
Although UI has not historically been a major wholesale supplier of bulk electric power (power sold to other utilities), it has marketed generating capacity and energy aggressively in recent years, seeking to sell outside its service territory the power it produces in excess of the present needs ofits own customers that became available when Seabrook Unit I commenced operating in 1990. Due to a general oversupply of power in the New England region and the region's slow economic growth, the Company's wholesale sales efforts have faced increasing competition; and new wholesale sales opportunities are expected to remain relatively weak during the near term.
Moreover, competition in this market can be expected to increase by reason of the federal Energy Policy Act of 1992, which was designed to foster competition in the wholesale market by facilitating the ownership and operation of ira;= ntly-owned generating facilities and authorizing the FERC to order electric utilities to furnish transmission senice to the owners of these generating facilities. Competition may also increase in the wholesale power market due to the entry of brokers and marketers, who buy and sell generating capacity and energy without owning or operating any generating or transmission facilities.
l l In UI's principal market, retail sales of electricity in the Company's franchised service territory, competitive pressures are rising from several sources. Industnal and large commercial customers may have the ability to own and operate facilities that generate their own electric energy requirements. If these facilities satisfy certain statutory requirements, UI can be required to purchase their output at UI's avoided cost. These customers may also substitute natural gas or oil for electricity as fuel for heating and cooling purposes, and industnal cu.tomers may l l have the option of relocating their facilities to a lower cost emironment. As a result of these pressures, and with the approval of the DPUC, UI offers special rate and service agreements to induce industnal and large commercial
. 7 n "-7! " ~ ~* -'% -' nv-
4 ~
customers to remain on the Company's system. However, to the extent that the Company loses rev:nues from customers leaving the system or paying for service under special rate or service agreements, the Company's only opportunity to replace such revenues will be through increased wholesale sales and retail sales growth. The Company is not capitalizing thesc " lost" revenues for future rate recovery and has stated publicly that it does not plan to seek retail rate increases for the foreseeable future The legislatures and regulatory comnussions in several states have considered or are consulering " retail wheeling." This, in general terms, vnaans the transmission by an electric utility of energy produced by another entity over the utility's transmission and distribution system to a retail customer in the utility's own semce territory. A retail wheeling reqmrement would have the effect of permitting retail aissa=*rs to purchase electnc capacity and energy, at the election of such customers, from the electric utility in whose semce area they are lacaeant or from any other electric utility or EA i-- =t power producer. The DPUC has 9e(---i a yE=-M that investigated whether retail whechng should be permitted in Connecticut. Among other tinngs, the DPUC concl.aded that the introduction of open competition for retail sales is not in the best interests of the affected constituencies, State energy policy, or the economy of the State of CMaA Nevertheless, the DPUC recommended that Connecticut utilities should prepare for the eventuality of either r, tail wheeling or some other form of competition that is more intense than the current franchise framework.
RATES The Company's retail electnc service rates are subject to regulation by the DPUC.
UI's present geneml retail rate structure consists of various rate and service classifications covering residential, commercial, industnal and street lighting services.
On December 16,1992, the DPUC approved levehmed rate increases of 2.66% ($15.8 million) in 1993 and 2.66% (an additional $17.3 million) in 1994, including allowed conservation and load management program twenue increases However, time Company has realimi increased revenues of $12.1 million and $12.5 million in 1901 and 1994, respectively, as a result of these rate increases Utilities are entitled by Connecticut law to revenues sufficient to allow them to cover their operating and capital costs, to attract needed capital and maintain their financial integrity, while also protecting the public interest. Accordingly, the DPUC's 1992 rate decision authorized a return on equity of 12.4% for ratemaking purposes. However, the Company may earn up to 1% above this level before a mandatory review is required by the DPUC.
The Company is allowed revenue increases for conservation and load management expenditures through a Conservation Adjustment Mechamsm (CAM) in its retail rates, and accordingly expects a revenue increase in 1995 of $6 million, or 1%, through operation of the CAM. Except for CAM revenue increases, the Company has stated publicly that it does not plan to seek any retail rate increases for the foreseeable future.
Since January 1971, UI has had a fossil fuel adjustment clause (FCA) in vutually all of its retail rates. The DPUC is required by law to convene an admimstrative proceeding prior to approving FCA charges or credits for each month. The law permits automatic implementation of the charges or credits if the DPUC fails to act within five days of the administrative proceeding, although all such charges and credits are also subject to further review and appropriate adjustment by the DPUC at public hearings required to be held at least every three months. We DPUC has made no matenal changes in UI's FCA charges and credits as the result of any of these proceedings or hearings.
f
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o FINANCING The Company's capital requirements are presently projected as follows:
1921 1996 1997 199E 1929, (000's)
Capital Expenditure Program $ 75,840 $76,176 $ 51,816 $ 60,768 $ 92,880 Long-term Debt Maturities 97,000 - 50,000 100,000 100,000 Mandatory Redemptions / Repayments 66.133 12.770 15.171 15.562 15.988 Total Capital Requirmnents $231,2n $88,2M $M6,282 $H6,130 $208,868 The Company presently estunates that its cash on hand and temporary cash investinents at the beginning of 1995, totaling $11.4 million, and its projected net cash provided by operations, less divulends, of $105.3 million, will be sufficient to fund the Company's entire capital expenditure program of $75.8 million and $40.9 million of the $163.1 million necessary to satisfy the 1995 requirements for long-term debt maturities and mandatary long-term debt redemptions and repayments. The Company presently estimates that its projected net cash provided by operations, less dividends, of $97.7 million, will be sufficient to fund the Company's entire capital expenditure program of $76.2 million and all of the Company's 1996 requirements for mandatory redemptions and repayments of $12.8 million. The Company presently estimates that its projected net cash provided tg operations, less dividends, of $282.0 million, will be sufficient to fund the Company's entire capital expenditure program of $205.5 mdhon and $76.5 million of the $296.7 million necessary to satisfy the 1997 through 1999 requirements for long-terin debt maturities and mandatory long-term debt redemptions and repayments.
All of the Compsny's capital requirements that exceed available cash will have to be provided by external financing. Although the Company has no commitment to provide such financing from any source of funds, other than a $225 million revolving credit agreement with a group of banks, described below, the Company expects to be able to satisfy its external financing needs by issuiag common stock, preferred stock and additional short-term and long-term debt, although the continued availability of these methods of financing will be dependent on many factors, including conditions in the securities markets, economic conditions, and the level of the Company's income and cash flow, in January 1994, the Company repaid $55.3 million principal amount of maturing 10.32% First Mortgage Bonds of Bridgeport Electric Company, a wholly-owned subsidiary of the Company that was subsequently merged th and into the Company, and a $5 million 13.1% term loan. These repsyments were made with a portion of the net proceeds from the issuance and sale, in December 1993, of $100 million five-year and one month Notes at a coupon rate of 6.20%.
On September 12,1994, the Company repaid at maturity $30 million principal amount of 7.62% Notes. In addition, on November 1,1994, December 2,1994 and January 17,1995, the Company repaid at maturity $13 ndilion, $10 million and $50 million principal amounts of 7.20%, 6.82% and 6.0% Notes, respectively.
On October 1,1994 and December 1,1994, the Company redeemed the remaining $110,000 and $3,830,000 principal amounts of 14 1/2 % 1984 Series, and 14 1/2 % 1984 Series B, Pollution Control Revenue Bonds, respectively, at a 3% premium.
On January 17,1995 and February 15,1995, the Company repaid $55.3 million and $10.8 million principal amounts of maturing 10.32% and 9.44% First Mortgage Bonds of Bridgeport Electric Company, a wholly-owned subsidiary of the Company that was merged with and into the Company in 4^ ember of 1994.
l On August 18,1994, United Capital Funding Partnership L.P. (' United Capital'), a special purpose limited l l
partnership in which the Company owns all of the general partner interests, was formed for the sole purpose of issmag its limited partner interests, represented by Preferred Capital Securities (' Capital Securitics'), and lending i
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the proceeds thereof to the Company in return for Junior Subordinated Deferrable Interest Debentures
(' Subordinated Debentures"). United Capital and the Company have registered $100 million of Capital Securities and/or Subordinated Debentures for sale to the public from time to time, in one or more series, under the Securities Act of 1933. The Company has also registered $200 million principal amount of Notes for sale to the public from time to time, in one or more series, under the Securities Act of 1933.
The Company has a revolving credit agreement with a group of banks, which currently extends to ,
December 14,1995. The borrowing limit of this facility is $225 million. The facility permits the Company to l borrow funds at a fluctuating interest rate determined by the prime lending market in New York, and also permits the Company to borrow money for Axed periods of time specified by the Company at fixed interest rates i deternuned by the Eurodollar interbank market in Ixmdon, or by biddang, at the Company's optson if a matenal adverse change in the business, operations, affairs, assets or condition, financial or otherwise, or prospects of the Company and its ==h=Aartes, on a consolidated basis, should occur, the banks may decline to lend additional ,
money to the Company under this revolving credit agreement, although borrowings onwarwting at the time of such an occurrence would not then become due and payable As of December 31.1994, the Company had $67 million in short-term borrowings outstanding under this facility. j l
In January 1995, the Company entered into interest rate cap agreements, with several haaks, to protect $100 l million of its short-term debt from increases in short-term interest rates. The agreements provide that if the )
LIBOR (London Interbank Offering Rate), for one-month borrowings, exceeds 8.50% on the 17th of any month during the period beginning February 17,1995 and ending January 17,1997, the banks will pay to the Company the difference between that LIBOR and 8.50%, multiplied by $100 million, for the subsequent one-month pened.
The Company's long-term debt instruments do not limit the amount of short-term debt that the Company may issue. The Company's revolving credit agreement desenbed above requires it to maintain an available carnings/ interest charges ratio of not less than 1.5:1.0 for each 12-month period ending on the last day of each calendar quarter. For the 12-month period ended December 31,1994,11is coverage ratio was 2.86. !
The Company has a Fossil Fuel Supply Agreement with a financu t institution providing for financing up to
$37.5 million in fossil fuel purchases. Under this agreement, the financing entity acquires and stores natural gas, coal and fuel oil for sale to the Company, and the Company purchases these fossil fuels from the financing entity at a price for each type of fuel that reimburses the financing entity for the direct costs it has incurred in exchasing and storing the fuel, plus a charge for maintaining an inventory of the fuel determined by reference to the fluctuating interest rate on thirty day, dealer-placed commercial paper in New York. The Company is obligated to insure the fuel inventories and to ia"='fy the Anancing entity against all liabilitics, taxes and other expenses incurred as a result of its ownership, storage and sale of fossil fuel to the Company. This agreement currently extends to March 1996. At December 31,1994, approximately $10.7 million of fossil fuel purchases were being financed under this agreement.
The Company's Preferred Stock provisions prohibit the issuance of additional Preferred Stock unless the Company's aAer-tax income for a period of twelve consecutive months ending not more than 90 days prior to such issuance is at least one and one-half times the aggregate of annual interest charges on all indebtedness and annual dividends on all Preferred Stock to be outstanding. The Preferred Stock provisions also prohibit any increase in long-term indebtedness unless the Company's aAer-tax income for a period of twelve consecutive months ending not more than 90 days prior to such increase is at least twice the annualized interest charges on all long-term todebtedness to be outstanding.
The provisions of the financing documents under which the Company leases a portion of its entitlement in Seabrook Unit i from an owner trust established for the benefit of an institutional investor presently require UI to maintain its consolidated annual aAer-tax car.h earnings available for the payment of interest at a level that is at least one and one-half times the aggregate interest charges paid on all indebminess outstanding during the year.
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On the basis of the formulas contained in the Preferred Stock provisions and the Seabrook Unit I lease financing documents, the coverages for each of the five years ended December 31,1994 are set forth below.
Preferred Stock Seabrook lease Provisions Provisions Preferred Imag-term Earnings / Interest lfE Stock ladebtedness Ratio 1990 3.38 3.84 1.72 1991 3.38 3.77 2.20 1992 3.23 3.88 2.41 1993 3.33 3.67 2.59 1994 2.72 3.14 2.86 The Company has a 5.45% participating share in Phase Il of the Hydro-Quebec transmission intertie facility linking New England and Quebec, Canada See " Arrangements with Other Utilities - Hydro-Quebec". As a participant, the Company is obligated to furnish a guarantee for its participating share of the debt financing for Phase II of the facility. Currently, the Company's guarantee liability for this debt amounts to approxi:nately $9.2 million.
The Company has a 9.5% common stock ownership share in Connecticut Yankee Atomic Power Company, which owns and operates a nuclear electric generating station in HaMam Neck, Connecticut. Connecticut Yankee
. plans and implements a construction program that is essential to maintain its station as a dependable source of l
low-cost electric power in New England. In this regard, the Company is obligated to furnish 9.5% of Connecticut Yankee's capital requirements within specified limits. As a condition of the debt financing arrangements for Connecticut Yankee's construction program, the lenders from time to time have required guarantees from the shareowners of Connecticut Yankee, although no such guaranteed debt is currently outstanding.
FUEL SUPPLY Fossil Fuel The Company burns coal, residual oil and natural gas at its fossil fuel generating stations in Bridgeport and New Haven. During 1994, approximately 821,000 tons of coal, 2.3 million barrels of fuel oil and 506 million cubic feet of natural gas were consumed in the generation of electricity. The Company owns and leases fuel oil storage tanks at its major generating stations in Bridgeport and New Haven that have maximum capacities of approximately 680,000 and 650,000 barrels of oil, respectively. In addition, the Company maintains approximately a 45< lay coal supply of 150,000 t m at its Bridgeport Harbor Station.
The Company has a fuel oil supply contract with the Tosco Corporation for the Company's New Haven and Bridgeport generating stations. The contract expires on September 30,1995.
The Company burns coal at the largest generating unit at Bridgeport Harbor Station, which is also capable of burning oil, and las a coal supply contract with Pittston Coal Sales Company that extends until July 31, 2007, subject to earlier termination prmisions.
The Company's New Haven Harbor Station has a dual-fuel capability of burning natural gas and oil. Under an agreement with Tenngasco, a division of Tenneco, the Company is obligated to burn approximately 6 billion cubic feet of gas per year, when offered by Tenngasco at a price that is competitive with oil. The natural gas burned by the Company during 1994 was not purchased pursuant to this agreement.
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i Nuclear Fuel l In addition to its common stock ownership in Connecticut Yankee, the Company holds ownership and leasehold interests in Seabrook Unit I and Millstone Unit 3, both of which are nuclear-fueled generating units.
Generally, the supply of fuel for nuclear generating ur.its involves the mining and milling of uranium ore to uranium concentrates, the conversion of uranium concentrates to uranium hexafluoride, enrichment of that gas and fabrication of the enriched hexafluonde into usable fuel assemblies.
After a region (approximately 1/5 to 1/3 of the nuclear fuel assemblics in the reactor at any time) of spent fuel i
is removed from a nuclear reactor, it is placed in temporary storage in a spent fuel pool at the nuclear station for cooling and ultimately la expected to be transported to permanen: storage sites, j Based on information furnished by the utilities responsible for the operation of the units in which the Company is participating, there are outstanding contracts that cover uranium conantrate purchases for the Connecticut Yankee Unit and Millstone Unit 3 through 1995 and for Seabrook Unit I through 1999. In addition, there are outstanding contracts, to the extent indicated below, for conversion, enrichment and fabrication wrvices for these units extending through the following years:
Conversion to Hesafluoride Endchment Fabdcation Connecticut Yankee Unit 1995 1999 (1) 1999 (2)
Millstone Unit 3 1995 1995 (1) 1997 (3)
Seabrook Unit 1 1999 2002 2007 (1) 70% of the enrichment requirements through 1998, and 50% through 1999, are covered under the present contract. Negotiations are in progress for the remaining uncontracted services through 2002.
(2) Negotiations are in progress that would extend the contract through 2007.
(3) The contract provides an option to extend fabrication services through 1999.
ARRANGEMENTS WITH OTHER UTILITIES The Company, in cooperation with other privately and publicly owned New England electric utilities, established the New England Power Pool (NEPOOL) in 1971. The objectives of NEPOOL are: (a) to assure that the bulk power supply of New England and any a4oining areas' served conforms to proper standards of reliability, (b) to attain maximum practicable economy, consistent with such proper standards of reliability, in such bulk power supply, and (c) to provide for equitable shanng of the resulting benefits and costs. These objectives are achieved through joint planning, central dispatching, cooperation in environmental matters, coordinated construction, operation and maintenance scheduling of electric generation and transmission facilities and through i I
the provision for more effective coordination with other power pools and utilities situated in the United States and Canada The agreement establishing NEPOOL is filed with the Federal Energy Regulatory Commission (FERC) and its provisions are subject to continuing FERCjurisdiction.
Operation, dispatching and coordination of planning of electric generating capacity for New England is done on a regular basis under NEPOOL. A central dispatching agency of NEPOOL, designated NEPEX, directs the operation and schedules the maintenance of the generating and transmission facilities of participating utilities and provides for coordination with other power pools and utilities.
The Company contributes to the financial support of certain 345 kilovolt transmission facihties that are a part of the New England transmission grid in connection with its participation in the ownership of Scabrook Unit I and Millstone Unit 3.
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Hydro-Quebec The Company is a panicipant in the Hydro-Quebec transmission intertie facility linking New England and Quebec, Canada Phase 11 of this facility, in which UI has a 5.45% participating share, has increased the capacity of the intertie from 690 megawatts to a maximum of 2,000 megawatts. A ten-year Firm Energy Contract, which provides for the sale of 7 million megawatt-hours per year by Hydro-Quebec to the New England participants in the Phase 11 facility, became effective on July 1,1991. See " Financing".
ENVIRONMENTAL REGULATION The National Environmental Policy Act requires that detailed statements of the environmental effect of the Company's facilities be prepared in connection with the issuance of various federal permits and licenses, some of which are described below. Federal agencies are required by that Act to make an iht environmental evaluation of the facilities as part of their actions during proceedings with respect to these permits and licenses.
The federal Clean Water Act requires permits for discharges of effluents into navigable waters and requires that all discharges of pollutants comply with federally approved. state water quality standards The C-*icut Department of Environmental Protection (DEP) has adopted, and the federal government has approved, water quality standards for receiving waters in Connecticut. A joint federal and state permit system, administered by the DEP, has been established to assure that applicable efiluent linutations and water quality standards are met in connection with the construction and operation of facilities that affect or discharge into these waters. The current Aeh=ge permit for New Haven Harbor Station was issued by the DEP on September 30,1991. The discharge permits for Bridgeport Harbor, English and Steel Point Stations expired on February 25,1992, May 15,1992 and March 16,1992, respectively. Applications for renewal of these permits were filed o August 23,1991, November 14,1991 and September 13, 1991, respectively, and the applications for English and Steel Point Stations have since been modified to reflect changes in the operating status of these generating facilities and changes in the permitting system Some new permits have been issued for specific discharges and, although other new permits have not yet been issued, the Company has not been advised by the DEP that any of these facilities has a permitting problem. While renewal applications are pending, the terms of the expired permits continue in effect. The DEP has determined that the thermal component of the discharges at each of the Company's stations will not result in a violation of state water quality standards and that the location, design, construction and capacity of the cooling water intake structures reflect the best technology available, as defined by the federal Environmental Protection Agency (EPA). All discharge permits may be reopened and amended to incorporate more stringent standards and effluent limitations that may be adopted by federal and state authorities. Compliance with this permit system has necessitated substantial capital and operational expenditures by UI, and it is expected that such expenditures will continue to be required in the future. Although the magnitude of future expenditures cannot sv.m be estimated accurately, the Company presently anticipates spending several million dollars during the next several years to consolidate and improve the wastewater collection and treatment system at Bridgeport Harbor Station.
Under the federal Clean Air Act, the EPA has promulgated national primary and secondary air quality standards for cenain air pollutants, including sulfur oxides, particulate matter and nitrogen oxides. The DEP has adopted regulations for the attainment, maintenance and enforcement of these standards. In order to comply with these regulations, the Company is required to burn fuel oil with a sulfur content not in excess of 1%, and Bridgeport Harbor Unit 3 is required to burn a low-sulfur, low-ash content coal, the sulfur dioxide (SO2) emissions from which are not to exceed 1.1 pounds of SO2 Per million BTU of heat input. Current air pollution regulations also include other air quality standards, emission performance standards and monitoring, testing and reporting l requirements that are applicable to the Company's generating stations and further restrict the construction of new sources of air poll'ition or the modification of existing sources by requiring that both construction and operating permits be obtained and that a new or modified source will not cause or contribute to any violation of the EPA's national air quality standards or its regulations for the prevention of significant deterioration of air quality.
A-M~nts to the Clean Air Act in 1990 will require a significant reduction in nationwide SO 2emissions by fossil fuel-fired generating units to a permanent total er issions cap in the year 2000. This reduction is to be
.-aw >-.n.u- _ . . - wa., n.ase . - ~ -a,
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achieved by the allotment of allowances to emit SO 2 , measured in tons per year, to each owner cf a unit, and requiring the owner to hold sufficient allowances each year to cover the emissionsf of 502 rom the unit during that year. Allowances are transferable and able to be bought and sold. The Company believes that, under the allowances allocaten formula, it will hold more than sufficient allowances to permit continued operation of its existing generating units without incurring substantial expenditures for additic,nal 2 SO controls. The Company is -
marketing its surplus allowances, and has sold to a midwestern utility company an option to purchase a quantity of the Company's surplus allowances commencing in the year.2000. This sale has not had a significant impact on the Company's earnings.
The sane 1990 Clean Air Act amendments also contain major new requirements for the control of nitrogen oxides that are applicable to generstmg units located in or near areas, such as UI's service territory, where air quality standards for nitrogen oxides and/or photochemical oxidants have not been attained. These amentiments also require the installation and/or modification of continuous emission monitoring systems, and require all existing generating units to obtain operating permits. Through the end of 1994, the Company has i-4-- +A a total of approximately $14.7 million to comply with these nitrogen oxides controls and emission monitoring systems j
requirements, and it expects to spend approximately $2.0 million during 1995 for this purpose On September 27, 1994, the Ozone Transport Commission (consisting of the twelve northeastern-most states plus the District of Columbia) adopted a Memorandiam of Understanding (MOU) which obligates certain of those states, including Connecticut, to adopt regulations which will further limit emissions from large stationary sounes of nitrogen oxides, including utility boders The MOU calls for such reductions to occur in two steps; the first in 1999 and the second in 2003, it is e-*t that such regulations, when promulgated, would become part of the federally mandated revisions to Connecticut's plan for achieving compliance with air quality standards for phot ~'~ae=1 ,
oxidants. However, these revisions have not yet been promulgated, and the Company is not yet able to assess accurately the applicability and impact ofimplementing regulations to and on its generating facilities. Compliance may require mamantial additional capital and operational expenditures in the future. In addition, due to the 1990
==antimenes and other provisions of the Clean Air Act, future construction or modafication of fossil-fired generating units and all other sources of air pollution in southwestern Connecticut will be conditioned on installing state-of-the-art nitrogen oxides controls and obtaining nitmgen oxide emission offsets - in the form of reductions in emissions from other sources - which may hinder or preclude such construction or modification programs in UI's service area, depending on ambient pollutant levels over which the Company has no control.
The Company's generating stations in Bridgeport and New Haven comply with the air quality and emission performana standards adopted by those cities.
Under the federal Toxic hhsianm Control Act (TSCA), the EPA has issued regulations that control the use and disposal of polychlorinated biphenyls (PCBs). PCBs had been widely used as insulating fluids in many electric utility transformers and capacitors manufactured before TSCA prohibited any further manufacture of such PCB equipment. Fluids with a concentration of PCBs higher than 500 parts per million and matenals (such as electrical capacitors) that contain such fluids must be disposed of through burning in high temperature incinerators approved by the Ei A. Solid wastes containing PCBs must be disposed of in either secure chemical waste landfills or in high-efficiency incinerators. In response to EPA regulations, UI has phased out the use of certain PCB capacitors and has tested all Company-owned transformers located inside customer-owned buildings and replaced all transformers found to have fluids with detectable levels of PCBs (higher than 1 part per million) with transformers that have no detectable PCBs. Presently, no transformers having fluids with levels of PCBs higher than 500 parts per million are known by Ul to remain in servia in its system, except at one of UI's generating stations.
Compliance with TSCA regulations has neassitated substantial capital and operational expenditures by Ul, and such expenditures may continue to be required in the future, although their magnitude cannot now be estimated.
De Company has agreed to participate financially in the remediation of a source of PCB contamination attributed to UI-owned electncal equipment on property in New Haven Although the scope of the remediation and the extent of UI's participation have not yet been fully determined, the owner of the property has estimated the total r==~hian cost to be approximately $346,000.
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Under the federal Resource Conservation and Recovery Act (RCRA), the generation, transportation, treatment, storage and disposal of hazardous wastes are subject to regulations adopted by the EPA. Connecticut has adopted state regulations that parallel RCRA regulations but are more stringent in some respects. The Company has complied with the notification and application requ;rements of present regulations, and the procedures by which UI handles, stores, treats and dispoecs of hazardous waste products have been revised, where necessary, to comply with these regulations.
The Company has estimated that the cost of environmental remediation of its L -- -Jssioned Steel Point Station pror.crty in Bridgeport will be approximately $11.3 million, and that the value of the property following remediation will not exceed $6 million. In its December 16,1992 decision on UI's application for retail rate increases, the DPUC provided for additional revenues to be recovered from customers in the amount of $4.3 million of the difference during the period 1993-1996, subject to truc-up in the Company's next retail rate proceeding based on actual remediation costs and actual gain on the Company's disposition of the property.
RCRA also regulates underground tanks storing petroleum products or hazardous substances, and Connecticut has adopted state regulations governing underground tanks storing petroleum and petroleum products that, in some aspects, are more stringent than the federal requirements. The Company has 18 underground storage tanks, which are used primarily for gasoline and fuel oil, that are subject to these regulations. The Company has a testing program to detect leakage from any of its tanks, and it may incur substantial costs for future actions taken to prevent tanks from leaking, to remedy any contamination of groundwater, and to remove and replace older tanks in compliance with federal and state regulations.
In the past, the Company has disposed of residues from operations at landfills, as most other industries have done. In recent years it has been determined that such disposal practices, under certain circumstances, can cause groundwater contamination. Although the Company has no knowledge of the existence of any such contamination, if the Company or regulatory agencies determine that remedial actions must be taken in relation to past disposal practices, the Company may experience substantial costs.
A Connecticut statute authorizes the creation of a lien against all real estate owned by a person causing a discharge of hazardous waste, in favor of the DEP, for the costs incurred by the DEP to contain and remove or mitigate the effects of the discharge. Another Connecticut law requires a person intending to transfer ownership of an establishment that generates more than 100 kilograms per month of hazardous waste to provide the purchaser and the DEP with a declaration that no release of hazardous waste has occurred on the site, or that any wastes on the site are under control, or that the waste will be cleaned up in accordance with a schedule apprwed by the DEP.
Failure to comply with this law entitles the transferee 'to recover damages from the transferor and renders the transferor strictly liable for the cleanup costs. In addition, the DEP can levy a civil penalty of up to $100,000 for providing false information. UI does not believe that any material claims against the Company will arise under these Connecticut laws.
A Connecticut statute prohibits the commencement of construction or reconstruction of electric generation or transmission facilities without a certificate of environmental compatibility and public need from the Connecticut Siting Council (CSC). In certification proceedings, the CSC holds public hearings, evaluates the basis of the public need for the facility, assesses its probable emitomnental impact and may impose specific conditions for protection of the environment in any certificate issued. During 1993, a citizens' group appealed to the Connecticut Superior Court from a decision of the CSC declining to reopen the 1991 certification of a transmission line that has since been completed by the Company and The Connecticut Light and Power Company in Fairfield County. The Superior Court dismissed this appeal; but the citizens' group has taken an appeal from the Superior Court's decision, and the Company is unable to predict what impact, if any, the group's actions will have on the operation of the transmission facility.
In complying with existing environmental statutes and regulations and further developments in these and other areas of emironmental concern, including legislation and studies in the fields of water and air quality (particularly " air toxics" and " global warming"), hazardous waste handling and disposal, toxic suham and
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electric a. 4 mcgnetic fields, the Company may incur substantial capital expenditures for equipment modifications and addaions, monitoring equipment and recording devices, and it may incur additional operating expenses Litigation expenditures may also increase as a result of scientific investigations, and speculation and debate, concerning the possibility of harmful health effects of electric and magnetic fields. The Company believes any .
additional costs are recoverable through the ratemaking process The total amount of these expenditures is not now determinable. See also Item 2. Properties " Nuclear Generation".
EMPLOYEES As of Demmber 31,1994, the Company had 1,377 employees, including 25 in subsuhary operations. Of these, approximately 63% had been with the Company for 10 or more years.
Approximately 722 of the Company's operating, maintenance and clerical employees are represented by Local 470-1, Utility Workers Union of America, AFL-CIO, for collective bargaining purposes On May 21,1992, the Company and the union agreed on a three-year contract, effective May 16,1992. There has been no work stoppage due to labor disagreements since 1966, other than a strike of three days duration in May 1985; and employee '
relations are considered satisfactory by the Company.
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Item 2. Properties GENERATING FACILITIES The electric generating capability of the Company as of December 31,1994, based on summer ratings of the generating units, was as follows:
Year of Max Claimed ' UI UI Operated: Fuel Installation Capability, Mw Entitlement
% Mw Bridgeport Harbor Station 1 #6 Oil 1957 82.00 100.00 82.00(1)
Bridgeport Harbor Station 2 #6 Oil 1%1 170.00 100.00 170.00 Bridgeport Harbor Station 3 #6 Oil / Coal 1 % 8/1985 385.00 100.00 385.00(2)
Bridgeport Harbor Station 4 Jet Oil 1%7 17.10 100.00 17.10 l
New Haven Harbor Etation #6 Oil / Gas 1975 447.00 93.71 418.86(3)
English Station 7 #6 Oil 1948 34.06 100.00 34.06(4)
English Station 8 #6 Oil 1953 38.49 100.00 38.49(4)
Operated by Other Utilities:
Connecticut Yankee Unit, Nuclear 1968 560.10 9.50 $3.21(5)
Haddam, Connecticut Millstone Unit 3, Nuclear 1986 1136.73 3.69 41.89(6)
Waterford, Connecticut Seabrook Unit 1, Nuclear 1990 1150.00 17.50 201.25(7)
Seabrook, New Hampshire Power Purchases From Comeneration Facilities:
Bridgeport RESCO, Refuse 1988 59.45 100.00 59.45 Bridgeport, Connecticut Total 1501.31 (1) Effective January 1,1994, Bridgeport Harbor Station I was removed from operation and dispatching under NEPOOL and was placed in deactivated reserve. See item 1. Business " Arrangements with Other Utilities."
(2) The unit has been burning coal since early January 1985.
(3) UI's 93.705% ownership share of total net capability, including 25 MW sold to another utility for a 10-year period, commencing October 1,1986 and 25 MW involved in a capacity exchange with another utility for a 6.5 year period, commencing May 1,1993. This unit is jointly owned by UI (93.705%), Fitchburg Gas and Electric Light Company (4.5%) and the electric departments of three Massachusetts municipalities (1.795%).
See item 1. Business " Fuel Supply".
(4) English Station Units 7 and 8 were placed in deactivated reserve, effective January 1,1992.
(5) Represents UI's 9.5% entitlement in the unit. See Item 1. Business ' Financing".
(6) Represents Ul's 3.685% ownership share of total net capability.
(7) Represents UI's'17.5% ownership share of total net capability, in August 1990, UI sold to and leased back from an owner trust established for the benefit of an institutional investor a portion of UI's 17.5% ownership interest in this unit. This portion of the unit is subject to the lien of a first mortgage granted by the owner trustee.
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.g TABULATION OF PEAK LOADS, RESOURCES, AND MARGINS *-
1994 ACIUAL, 1995 - 1999 FORECAST (MEGAWATTS) _
Actual For -
- 1994 1995 1996 1997 1998 1999 At Time of Peak Load on LTs Systen:
Capacity of generatang units operated tw UI(1) 990.% 990.% - 990.% .990.96 990.96 990.%
Entitlementsin nuclear umts (1)(2)
Cannarviad Yankee Unit 53.21 53.21 53.21 53.21 53.21 53.21 Millstone Unit 3 41.89 41.89 41.89 41.89 41.89 41.89 Scalwook Unit 1 201.25 201.25 201.25 201.25 201.25 201.25 296.35 296 35 296.35 296.35 296.35 296.35 Equivalent capacityvalue of entitlement in Hydro Ouebec (1)(2) 98.10 98.10 98.10 98.10 98.10 98.10 Purchases from cogeneration facilities 62.00 59.45 59.45 59.45 59.45 59.45 Bride dRESCO Sheltonlandfill(3) 1.88 1.74 1.61 1.50 Purchase from New York Power Authonty 1.18 1.32 1.32 1.32 1.32 1.32 Purchases from (sales to) other utahtnes Net power contracts - fossil 15.00 (14.00) (1.80) 8.20 _1L2Q 38.20 Total generating resources infil.22 M32.18 Mafi.2ft M2i.12 MR122 148188 Calculation of NEPOOL capability m iw% (4)
Peakload 1131.00 1126.00 11'13.00 1135.00 1140.00 1146.00 Required reserve margin 172.50 .197.46 225.39 234.92 232.64 237.43 Total capability responsibility 1302.21 132 Lift 1118.32 11ft2.22 1322.fti 1383.dl Available Margin (5) lfig.gg los 72 ,, 32,32 ,,,,ggi,2g 11315 102 45 (1) Capacity shown reflects summer ratings of generating units.
(2) Winter ratings of UI nuclear and Hydro-Quebec interconnection's equivalent capacity value entitlements (megawatts):
Connecticut Yankee Unit - 56.05 Millstone Unit 3 - 42.33 Seabrook Unit 1 - 201.25 Hydro-Quebec - 66.22 (3) Projected to begin w .;,;cial operation by of ' = 1995. -
(4) UI's required capacity as a NEPOOL participant.
(5) Total generating resources less capability responsability. In addition, UI maintains three units (Bridgeport Harbor Station 1 and English Station 7 and 8) in deactivated reserve, representing a total of 154 MW of generating capacity.
o During 1994, the peak load on the Company's system was approximately 1,131 megawatts, which occurred in July. UI's total generating capability at the time was 1,462 megawatts, including a 98 megawstt increase in capability provided by the equivalent capacity value of UI's entitlements in the Hydro-Quebec facility and reflecting the net effect of temporary arrangements with other electric utilities and cogenerators. The Company is currently forecasting a compound growth in peak load of 0.5% during the period 1994 to 2004. Based on current forecasts ofloads, UI's generating capability will exceed its projected capability responsibility to NEPOOL for generating capacity through at least 2001, and English Station Units 7 and 8 and Bridgeport Harbor Station Unit I can be reactivated if higher than anticipated load growth occurs If, due to the permanent loss of a generating unit or higher than expected load growth, UI's own generating capability becomes inadequate to meet its capability responsibility to NEPOOL, UI expects to be able to reduce the load on its system by the implementation of additional demand-side management programs, to acquire other demand-side and supply-side resources, and/or to purchase capacity from other utilities as necessary. However, because the generation and transmission systems of the major New England utilities, including Ul, are operated as if they were a single system, the ability of UI to meet its load is and will be dependent on the ability of these New England utilities to meet the region's load. At the time of the NEPOOL summer peak in July 1994, these New England utilities had 26,555 megawatts of generating capacity, including 1,500 megawatts ofinterconnectic,n credit of the Hydro-Quebec facility, available to meet the New England peak load of 20,519 megawatts. See " Nuclear Generation" and item 1. Business -
" Competition" and " Arrangements with Other Utilities".
Shown below is a summary of the Company's sources and uses of electricity for 1994.
Merawatthours (000's)
Sources Uses Owned Retail Customers 5,363 Nuclear (Millstone Unit 3 and Seabrook Unit 1) 1,433 Coal 2,156 Wholesale Oil 1,310 Delivered to NEPOOL 907 Gas & Gas Turbines 48 Contracts 728 Total Owned 4,947 Company Use & Losses 289 Purchased Nuclear (Connecticut Yankee Unit) 361 Total Uses 2,2112 Contracts 922 NEPOOL 706 Hydro-Quebec 351 Total Sources 2,2]l2 TRANSMISSION AND DISTRIBUTION PLANT The transmission lines of the Company consist of approximately 100 circuit miles of overhead lines and approximately 19 circuit miles of underground lines, all operated at 345 KV or 115 KV and located within or immediately adjacent to the territory served by the Company. These transmission lines interconnect the Company's English, Bridgeport Harbor and New Haven Harbor generating stations and are part of the New England transmission grid through cormections with the transmission lines of The Connecticut Light and Power Company.
A major portion of the Company's transmission lines is constructed on a railroad right-of-way pursuant to a Transmission Line Agreement that expires in May 2000.
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The Company owns and operates 24 bulk electric supply substations with a capacity of 2,637,000 KVA and 49 ,
distribution substations with a capacity of 282,000 KVA. The Company has 3,123 pole-line miles of overhead distribution lines and 132 conduit bank miles of undaground distribution lines, 8
rning the estimated cost of additions to the GWs h%n and da bu 6 I
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o' CAPITAL EXPENDITURE PROGRAM The Company's 1995 1999 capital expenditure program, excluding allowance for funds used during construction (AFUDC) and its effect on certain capital related items, is presently budgeted as follows:
1995 1996 1997 1998 1999 J913!
(000's)
Production $16,848 $26,446 $10,912 $3,424 $34,906 $92,536 Distnbution 18,864 16,728 16,884 16,080 16,560 85,116 Transmission 7,500 4,596 8,412 15,060 17,4 % 53,064 Conservation and Load Management 11,580 9,756 9,468 9,048 9,012 48,864 Nuclear Fuel 8,052 11,280 1,248 11,820 10,128 42,528 Other .12.9% .2 370 4.892 5.336 4.778 35.372 Total Expenditures $75.840 $76.176 $51.816 $60.768 $92.880 1357.480 AFUDC (Pre-tax) $3,174 . $2,437 $2,031 $2,034 $938 Book Depreciation (1) 59,866 64,195 66,168 69,047 73,301 Decommissioning 1,823 1,910 2,001 2,097 2,198 Normalized Tax Depreciation 34,767 36,898 38,382 39,732 42,877 Accelerated Tax Depreciation - 68,743 58,191 59,253 58,655 61,038 Amortization of Deferred Return on Scabrook Unit 1 Phase-In (2) 12,586 12,586 12,586 12,586 12,586 Estimated Rate Base (end of period) $1,209,500 $1,238,035 $1,212,275 $1,184,307 $1,220,861 (1) Steel Point Station environmental remediation costs of
$1,075,000 per year are included each year through 19%.
(2) Deferred return will be amortized over the period 1995-1999.
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NUCLEAR GENERATION General UI holds ownership and leasehold interests in Seabrook Unit 1 (17.5%) and Millstone Unit 3 (3.685%). UI also owns 9.5% of the common stock of Connecticut Yankee and is entitled to 9.5% of the generating capability of its nuclear generating unit. Each of these nuclear generating units is subject to the licensing requnements and jurisdiction of the NRC under the Atomic Energy Act of 1954 as amended and to a variety of other state and federal requirements. 1 The NRC regularly conducts generic reviews of numerous technical issues, ranging from seismic design to education and fitness for duty requirements for licensed plant operators. The outcome of reviews that are currently pendmg, and the ways in which the nuclear generating units in which UI has interests may be affected by these reviews, cannot be determined; and the cost of complying with any new requirements that might result from the reviews cannot be estimated. However, such costs could be substantial. ,
t Additional capital expenditures and increased operating costs for the nuclear generating units in which UI has interests may result from modifications of these facilities or their operating procedures required by the NRC, or from actions taken by other joint owners or companies having entitlements in the units. Some equipment modificauons have required and may in the feture require shutdowns or deratings of the generating units that would not otherwise be neccesary and that result in additional' costs for replacement power. The amounts of ;
additional capital expenditures, increased operating costs and replacement power costs cannot now be predicted, but they have been and may in the future be substantial.
Public controversy concerning nuclear power could also adversely affect the nuclear generating units in which UI has interests. Proposals to force the j,.g..euk shutdown of nuclear plants in other New England st tes have received serious attention, and the licensing of Seabrook Unit I was a regional issue. The continuing controversy can be expected to increase the costs of operating the nuclear generating units in which UI has interests; and it is ,
possible that one or more of the units could be slmt down prematurely.
Insurance Requiressents The Price-Anderson Act, currently extended through August 1,2002, limits public liability resulting from a single incident at a nuclear power plant. The first $200 million ofliability coverage is provided by purchasing the '
maximum amount of commercially available insurance Additional liability coverage will be provided by an assessment of up to $75.5 million per incident, levied on each of the nuclear units licensed to operate in the United States, subject to a maximum name== ment of $10 million per incident per nuclear unit in any year. In addition, if the sum of all public liability claims and legal costs resulting from any nuclear incident exceeds the maximum amount of financial protection, each reactor operator can be acce==ed an additional 5% of $75.5 million, or $3.775 mil! ion. The maximum assessment is adjusted at least every five years to reflect the impact of inflation. Rased on its interests in nuclear generating units, the Company estimates its maximum liability would be $23.2 million per incident. However, assessment would be limited to $3.1 million per incident, per year. With respect to each of the operating nuclear generating units in which the Company has an interest, the Company will be obligated to pay its ownership and/or leaschold share of any statutory assessment resulting from a nuclear incident at any nuclear generating unit.
The NRC requires nuclear generating units to obtain property insurance coverage in a minimum amount of
$1.06 billion and to establish a system of prioritized use of the insurance proceeds in the event of a nuclear incident. The system requires that the first $1.06 billion of insurance proceeds be used to stabilize the nuclear reactor to prevent any significant risk to public health and safety and then for decontamination and cleanup operations. Only following completion of these tasks would the balance, if any, of the segregated insurance proceeds become available to the unit's owners. For each of the nuclear generating units in which the Company
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has an interest, the Company is required to pay its ownership and/or leasehold share of the cost of purchasing such insurance.
Waste Disposal and Decomunissioning Costs associated with nuclear plant operations include amounts for disposal of nuclear wast:s, including spent fuel, and for the ultimate decommissioning of the plants. Under the Nuclear Waste Policy Act of 1982, the fedem!
Department of Energy (DOE) is required to design, license, construct and operate a permanent repository for high level radioactive wastes and spent nuclear fucl. The Act requires the DOE to provide, beginning in 1998, for the aapa=1 of spent nuclear fuel and hig,h level radioactive waste from commercial nuclear plants through contracts with the owners and generators of such waste; and the DOE has established disposal fees that are being paid to the federal government by electric utilities owning or operating nuclear generating units. In return for payrnent of the prescribed fees, the federal government is to take title to and dispose of the utilities' high level wastes and spent nuclear fuel beginning no later than 1998. However, the DOE has =====~d that its first high level waste repo6itory will not be in operation earlier than 2010, notwithstanding the DOE's statutory and mntractual responsibility to begin disposal of high-level radioactive waste and spent fuel beginning not later than January 31 1998.
Until the federal governt o gins receiving such materials in accordance with the Nuclear Waste Policy Act, operating nuclear generatu,s uits will need to retain high level wastes and spent fuel on-site or make other l provisions for their storage. Storage facilities for Millstone Unit 3 are expected to be adequate for the projected life of the unit. Storage facilities for the Connecticut Yankee unit are expected to be adequate through the mid-1990s.
Storage facilities fcr Seabrook Unit I are expected to be adequate until at least 2010. Fuel consolidation and
-Fon technologies are being developed and are expected to prmide adequate storage capability for the proje ted lives of the latter two units. In addition, other licensed technologies, such as dry storage casks, can accommodate spent fuel storage requirements.
Disposal msts for low-level radioactive wastes (LLW) that result from normal operation of nuclear generating units have increased significantly in recent years and are expected to continue to rise. The cost increases are functions ofincreased packaging and transportation costs and higher fees and surcharges charged by the disposal facilities. As of June 30,1994, the disposal facility in Barnwell, South Carolina was closed to all LLW disposal for New England nuclear units, forcing all of these units into on-site storage of LLW produced.
Pursuant to the Low-level Radioactive Waste Policy Act of 1980, each state is responsible for providing disposal facilities for LLW generated within the state and is authorized to join with other states into regional compacts to jointly fulfill their responsibilities. The Connecticut Hazardous Waste Management Senice (the I Senice), a state quasi-public corporation, was charged with coordinating the establishment of a facility for disposal of LLW originating in Connecticut. In June 1991, the Senice announced that it had selected three potential sites in north-antral Connecticut for further study. The Senice's announcement provoked intense controversy in the aficcted municipalitics and resulted in legislative action to stop the selection process. On February 1,1993, the Senice presented to the legislature a new site selection plan under which communities are urged to volunteer a site for a facility in return for financial and other incentives. The volunteer process is being continued throrgh 1996. l The Senice's activities in this regard are funded by assessments on Connecticut's LLW generators. Due to a l change in the volunteer process, there was no assessment for the 1994-1995 fiscal year and the state projects no assessment for the 1995-19% and 1996-1997 fiscal years. The senice currently projects that a disposal site will be designated by 2002, although there are admitted inherent uncertainties in this projection.
Additional LLW storage capacity has been or can be constructed or acquired at the Millstone and Connecticut Yankee sites to prmide for temporary storage of LLW should that become nemary Connecticut LLW can be managed by volume reduction, storage or shipment at least through 2000. The Company cannot predict whether and when a disposal site will be designated in Connecticut.
l The State of hw Hampslure has not met deadlines for compliance with the low-Level Radioactive Waste Pohey Act, and Scabrook Unit I has been denied access to existing disposal facilities. Therefore, LLW generated by Seabrook Unit 1 is being stored on-;,ite. The Seabrook storage facility currently has capacity to store at least five years' mer===Inhaa of waste generated by Seabrook, and the plant operator plans to expand its storage capacity as necessary.
NRC hocasing requirements and restnctmas are also applicable to the decomnussioning of nuclear generating units at the end of their service lives, and the NRC has adopted comprehensive regulauons concermng dana ==e-i =iar planning, timing, funding and environmental reviews Ul and the other owners of the nuclear generatang units in which UI has interests ame==ia '--- -- " " ; costs for the units and attempt to recover
==8Ec=id amounts through their allowed electnc rates to cover expected decommissioning costs. Changes in NRC requirements or technology can increase estimated dana ==+=ananing costs, and UI's aima==rs in future years may expensace higher electnc rates to offset the effects of any insufficient rate recovery in prior years.
New Hampshim has enacted a law requinag the creauon of a' government-managed fund to finance the dana ==iaminamar of nuclear generating units in that state. The New Hampshire Nuclear Decommiazioning Financing Committee (NDFC) has mannhhahad $376 million (in 1995 dollars) as the decommissioning cost estimate for Seabrook Unit 1. This ame= nee prenuses the prompt removal and dismantling of the Unit at the end of its ami==nad 40-year energy producing life. Monthly decosamassioning payment: are being made to the
_ ' - - - '"- '; trust fund. UI's share of the decommissioning payments made during 1994 was
$1.3 authon. UI's share of the fund at December 31,1994 was approximately $5.2 million.
t'anaaMind has .ascled a law requiring the operators of nuclear generating units to file penodically with the DPUC their plans for financmg the decommissioning of the units in that state. Current decommissioning cost ame=ns= for Millmane Unit 3 and the; Connecticut Yankee Unit are $448 million (in 1995 dollars) and $357 milhan (in 1995 dollars), respectively. These estimates prenuse the prompt removal and dismantling of each unit at the end ofits estimated 36-year energy producing life. Monthly decommissioning payments, based on these ccst ash ==sas, are being made to danammissianing trust funds managed by Northeast Utilities. UI's share of the Mallstone Unit 3 t =---'- " ; payments inade during 1994 was $388,000. UI's share of the fund at hna=har 31,1994 was approximately $2.4 million. For the Company's 9.5% equity ownership in C&+t -
Yankee, dana ====ianiar costs of $1.3 million were funded by Ul during 1994, and UI's share of the fund at N=ahar 31,1994 was $14.1 million.
Itent 3. Legal"se "-;
On Novesaber 2,1993, the Company received " updated" . personal property tax bills from the City of New Haven (the City) for the tax year 1991-1992, aggregating $6.6 miluon, based on an audit by the City's tax assessor.
On May 7,1994, the Company received a " Certificate of Correcuon ..to correct a clerical omission or mistake" froen the City's tax assessor relatm to the assessed value of the Company's personal property for the tax year 1994-1995, wluch certificate purports to increase said assessed value by approximately $3% above the tax assessor's valumuon at February 28,1994. The Company is contesting each of these actions of the City's tax assessor vigorously, and has commearad acuons in the Supnor Court to enjoin the City from any effort to collect the 'bpdated" personal property tay bills for the tax yrar 1991.-1992 and challenging both the May7,1994
' Certificate of Correcuon"and the tax assessor's valuaten at February 28,1994, in December of 1994, the City's tax assessor conducted heanags regarding the assessed value of the Company's personal property for the tax years 1992-1993 and 19931994; and the Company anticipates that the City will take some action to revalue the Company's personal property for those tax years. On March 1,1995, the Company received from the City notices of manaan=*ne changes, increasing the assessed valuation of the Company's personal property for the tax year 1995-1996 by 48% over the valumuon declared by the Company. The Company expects to take the legal actions necessary to challenge these increases. It is the present opinion of the Company that the ultimate outcome of this dispute will not have a signincant impact on the financial position of the Company.
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On December 30,1994, the Company settled its prci.crty tax dispute with the City of Bridgeport. See ' Notes to Consoluisted Financial Statements - Note (N)".
Item 4. Submission M Matters to a Vote of Security Holders There were no matters submitted to a vote of security holders, through the solicitation of proxies or otherwise, during the fourth quarter of the fiscal year ended December 31,1994, 1
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EXECUTIVE OFFICERS OF THE COMPANY The names and ages of all executive officers of the Company and all such persons chosen to become executive officers, all positions and offices with the Company held by each such person, and the pened during which he or
^
she has served as an officer in the office indicated, are as follows-Posities Effective Date Haag h 59 Chairman of the Board of Directors May 1,1991 Rachard J. Grossi and Chief Executive Officer 57 Presulent and Chief Financial Of5cer May 1,1991 l Robert L. Fiscus James F. Crowe 52 Executive Vice PreAlent and Chief Customer Of5cer January 1,1994 Vice Presulent-Corporate Affairs February 1,1993 Rita L. Bowlby 56 Vice President-Transmission and Distribution October 1,1994 Raymond G. Dube 52 49 Vice President-Information Resources January 1,1994 Stephen F. Goldschmidt Vice President-Adminisitation January 1,1994 Albert N. Henricksen 53 59 Vice President-Generation January 1,1994 David W. Haskinnan Robert H. Hyde 54 Vice President @~ Senices January 1,1986 E. Jon Majkowski 52 Vice President May 1,1992 46 Vice President-Marketing June 1,1992 Anthony J. Vallillo James L. Benjamin 53 Controller January 1,1981 l 46 Treasurer and Secretary January 1,1994 :
Kurt D. Mohlman Charles J. Pepe 46 Assistant Treasurer and Assistant Secretary January 1,1994 i
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There is no family relationship betmen any director, executive officer, sr person nominated or chosen to become a director or executive officer of the Company. All executive officers of the Company hold office during the pleasure of the Company's Board of Directors and Messrs. Grossi, Fiscus and Crowe have each entered into an employment agreement with the Company. There is no arrangement or understanding between any executive officer of the Company and any other person pursuant to which such officer was selected as an officer.
A brief ===a' of the business expenence during the past five years of each executive officer of the Company is as follows:
Richard J. Grossi. Mr. Grossi served as President and Chief Operating Officer during the penod January 1, 1990 to May 1,1991. He has served as Chairman of the Board of Directors and Chief Executive Officer since May 1,1991.
1 Mr. Fiscus served as Fvmstive Vice President and Chief Financial Officer of the I Robert L. Fiscus.
Company dunng the period January 1,1990 to May 1,1991. He has served as President and Chief Financial l OfHoer since May 1,1991. J I
James F Crowe. Mr. Crome served as Semor Vice President-Marketing of the Company during the penod January 1,1990 to May 1,1992, and as Executive Vice President from May 1,1992 to January 1,1994. He has i served as Executive Vice President and Chief Customer Officer since January 1,1994.
Rita L Bowlby. Ms. Bowlby has served as Vice President Corporate Affairs since February 1,1993. Prior tojoining the Company, during the period from January 1,1990 to February 1,1993, she served as President of Bowlby & Associates, a business-to tmsiness communications agency in Farmington. Connecticut.
Raymond G. Dube. Mr. Dube served as Transmission Manager during the period January 1,1990 to July 1, j 1992, as Director of Transmission & Distribution Operations from July 1,1992 to March 1,1994 and Director of i Electnc Systems from March 1,1994 to October 1,1994. He has served as Vice President-Transmission and Distribution since October 1,1994.
Stephen F. Goldschmidt. Mr. Goldschmidt served as Vice President-Planning from January 1,1990 to ,
I January 1,1994. He has served as Vice President-Information Resources since January 1; 1994.
Albert N. Henricksen. Mr. Henricksen served as Vice President-Engineering of the Company during the period January 1,1990 to July 23,1990, and as Vice President-Human and Emir 9mnental Resources from July 23, ;
1990 to January 1,1994. He has served as Vice President-Administration since January 1,1994, 1 David W. Hoskinson. Mr. Hoskinson served as Senior Vice President-Operations of the Company during the period January 1,1990 to July 23,1990, and as Senior Vice President-Generation Engineering and Operations )
from July 23,1990 to January 1,1994. He has served as Viz President-Generation since January 1,1994.
Robert H. Hyde. Mr. Hyde has served as Vice President-Customer Services of the Company during the five-year period.
E. Joe Majkowski. Mr. Maikowski served as Vice President-Public Affairs of the Company during the period January 1,1990 to May 1,1992. He has served as Vice President since May 1,1992.
Astbony J. Vallillo. Mr. Vallillo served as Director of Sales and Market Development of the Company during the period January 1,1990 to Demmber 1,1990, and as Director of Marketing from December 1,1990 to June 1,1992. He has served as Vice President-Marketing since June 1,1992.
James L Benjamis. Mr. Benjamin has served as Controller of the Company during the five-year period.
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y Kurt D. Mohl=== Mr. Mohlaan served as Director of Financial Planning during the period January 1, 1990 to ky- - * -- -1,1990
- r.nd as Director of Financial Planning and Investor Relations from September 1,1990 to January 1,1994. He has served as Treasurer and Secretary of the Company since January 1,1994.
Chades J. Pepe. Mr. Pepe served as Director of Financing during the period January 1,1990 to January 1 ,
1994. He has served as Assistant Treasurer and Assistant Secretary of the Company since January 1,1994.
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2 PART 11 Item 5. Market for the Company's Common Equity and Related Stockholder Matters.
UI's Common Stock is traded on the New York Stock Exchange, where the high and low sale prices during 1994 and 1993 were as follows:
1994 Sale Price 1993 Sale Price M.id. IdtE ElEh AdtE First Quarter 39 1/2 35 1/4 43 5/8 41 Second Quarter 37 1/8 32 1/2 44 41 3/4 Third Quarter 34 1/2 29 1/8 45 7/8 42 5/8 Fourth Quarter 30 1/2 29 45 1/4 38 1/2 g o UI has paid quarterly dividends on its Common Stock since 1900. The quarterly dividends declared in 1993 and 1994 were at a rate of 661/2 cents per share.and 69 cents per share, respectively.
The indenture under which the Company's Notes are issued places limitations on the payment of cash dividends on common stock and on the purchase or redemption of common stock. Retained earnings in the amount of $87.2 million were free from such limitations at December 31,1994.
As of February 28,1995, there were 17,910 Common Stock simreawmers of record.
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..-,---..a Itern 6. Selected Financk! D:ta ,
1994 1993 1992 . ,
Financial Results of Operation (8000's)
Sales of electricity:
Retail Residentist $ 252,386 $238,185 $ 226,455 Commercial 250.771 (2) 256,559 253,456 (2)
- Industrial 104,242 (2) 97,466 97,010 (2)
Other 11,469 11,349 11,065 Total Retail 618,868 603,559 587,986 ;
Wholesale (1) 34,927 45,931 75,484 :
Other operating revenues 2.953 3,533 3,855-l Total operating revenues 656,748 653,023 667,325 ;
Fuel and interchange energy -re:
Retail-own load 99,589 98,694 108,084 I Wholesale 27,765 39,356 55,189 .
Cepecity purchased-not 44,769 47,424 43,560 )
Depreciation 58.165 56,287 50,706 i
' Other operating expenses, l excluding tem expones 194,270 205.207 193,841 i Gross earnings tax 27,403 27.955 27,362 i 32,458 29.977 31,869 Other norrincome taxes {
Total operating expenses, excluding income taxes 484,419 504,900 510.591 }
Deferred return Seabrook Unit 1 0 7,497 15,959 )
AFUDC 3,463 4,067 3.232 Other non operating incomeUoss) (1,907) 71 18,545 l Interest expense:
Long-term debt 73,772 80,030 88,666 Other 10,301 12,260 12,882 Total 84,073 92,290 101.548 Income tax expense:
Operating income tax 44,937 33,309 48,712 Non-operating income tax (3,214)
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(6.322) (12.558) 41,723 26,987 36,154 Total incomeGoss) before cumuistive effect of accounting change 48,089 40,481 56,768 !
Cumulative effect of change in accounting - not of tax (1,294) 0 0 Not income Goss) 46,795 40,481-(3) 56,768 Preferred and preference stock dividends 3,323 4,318 4.338 income floes) applicable to common stock 643,472 636,163 $ 52,430 Operating income $ 127,392 $ 114,514 8108,022 Financial Condition (8000's)
Plant in service-not $ 1,268,145 $ 1,243,426 $ 1,224,058 Construction work in progress 57,669 77.395 59,809 Plant-related regunstory asset 0 0 0 Other property and investments 53,267 58.096 65,320 Current meests 157,309 187,981 247,954
$38,601 567,394 556,493 Regulatory assets Total Assets $ 2,074,991 $ 2,134,292 $ 2,153,634 Common stock equity $ 428,028 6423,324 4422,746 I Preferred and preference stock 44,700 60,945 60,945 <
I Long term debt excluding current portion 708,340 875,268 893.457 Noncurrent liabilities 29,281 29,119 25,853 Current portion of long-term debt 193,133 143,333 92,833 Notes payable 67,000 0 84.099 Other current liabilities 152.261 150.890 133,471 Regulatory liabilities, principolly deferred tax liabilities 452,248 451,413 440,230 Total Capitalization and Liabilities 52,074.551 52,134,252 : L153,534
! (1) Operating Revenues, for years prior to 1992, include wholesale power exchange contract sales that were reclassified from Fuel and Cepecity expenses in accordance with Federal Energy Regulatory
( Commission requirements, l
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. 1991 19C0 1989 1C88 1987 1986 1985
$ 226.751 $ 211,891 $205,183 $200,170 $ 188,740 $178,268 $ 190,880 255,782 234,704 219,852 208,801 195,972 180,888 192,658 91,895 94.526 92,855 96,665 100,354 99,939 118,637 10.886 10,536 9,943 9.732 9,480 9,516 10,367 585,314 551,657 527,833 515,368 494,546 468,611 b12.542 84,236 85,657 77,925 63,263 54,708 48,010 49,164 3,821 3.332 3,348 3,570 3,077 2.508 2,394 673.371 640,646 609.106 582.201 552,331 519.129 564,100 l 123,010 119,285 128,739 121,425 131,471 126,778 175,764 i 61,858 69,117 62,681 53,837 51,411 46,466 49,066 i 44,668 42,827 50,234 35,465 17,746 15.028 10,112 48,181 36,526 35,618 24,069 37,160 22.112 18,128 l
189.327 180,592 155,282 143,822 138,315 131,448 122,567 l 27,223 25,595 24,506 23,948 22,997 21,838 25,221 28.673 24.648 20,294 21,695 17,194 17,991 16.566 522,940 498,590 477,354 424,261 416,294 381,661 417,424 17,970 21,503 0 0 0 0 0 5,190 3,443 65,443 75,656 81.419 78,044 62,623 2,697 22,654 (219,742) (23,369) (97,686) (75,380) 29,838 90,296 94,056 91.126 90,022 88,700 88,610 72,068 9,847 15,468 22.849 12,069 9,228 2,223 5.334 l 100,143 109,524 113,975 102.091 97.928 90,833 77,402 47,231 43,493 37,963 44,045 50,633 51,419 62,047 )
(19,299) (17,409) (101.135) (14.548) (37,440) (33,884) (3,317) 27,932 26.084 (63,172) 29,497 13,193 17.535 58,730 48,213 54,048 (73,350) J o,639 8,649 31,764 103,005 i 7,337 0 0 0 0 0 0 )
55,550 54,048 (73,350) 78,639 8,649 31,764 103,005 )
4.530 4,751 8,233 11,348 11,953 18,969 20,339
$ 51,020 $49,297 ($ 81,583) $ 67,291 ( $ 3,304) 812,795 882,666 6103.200 898.563 $ 93,789 $ 113,895 $ 85,404 886,049 $84,629
$ 1,219,871 $ 1,209.173 $ 562,473 $560,930 $ 563,210 $ 571,549 $425,873 54,771 50,257 675,831 812.246 737,169 742,585 845,112 0 0 81,768 88,339 68,603 55,497 0 79,009 90,006 91,648 83,860 76,032 70,927 60,127 1 164,839 161,066 170,823 166,270 122.075 107,399 214,057 I 554,365 553,986 605,696 653,418 610,913 607,294 93,350 l 82,072,855 $ 2,064.488 $ 2.188,239 $ 2,365,063 82,178,002 82,155.251 81,638,519 6401,771 8379,812 6362,584 $ 473,674 $ 438,564 $ 476,108 8493.261 62,640 69.700 70,000 104,000 110,000 133,000 166,000 909,998 899,993 868.884 862,287 767,559 661.548 664,648 96,973 99,933 107,781 111,971 95,070 81,263 59,814 37,500 41,667 18,667 3,667 28,667 18,667 3,667 l 13,000 15,000 45,000 0 0 25,675 0 127,524 149,090 142,878 122,237 117,009 100,G66 131,803 423,449 409,293 572,445 687.227 621.133 658,324 119,326 42,072,855 $ 2,064,488 $ 2,188,2 3 9 62,365.063 62,178,002 82.155.251 61.638,519 (2) includes reclassification of certain Commercial and Industrial customers, (3) includes the effect of a reorganization charge of $7.8 million, after tax, 1
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y Item 6. Selected Mnancirl Data (continued) ,
~
if94 1993 1992 Common Stock Data Average number of shares outstanding 14.085,452 14,063,854 13,941,150 Number of shares outstanding et year-end 14,086.691 14,083,291 14,033,148 Earnings (loss) per share (everage) $3.09 (1) $2.57 (3) $ 3.76 Book value per share $ 30.39 $30.06 $ 30.12 Average return on equity Total 10.19 % 8.45 % 12.67 % l Utility - 12.50 % 10.97 % 14.46 % l Dividends declared por ehere $ 2.76 $ 2.66 $ 2.56 Market Price: j High - $39.500 $45.875 $ 42.000 ;
Low $ 29.000 $ 38.500 $ 34.125 Year-end $ 29.500 $40.250 $ 41.500 j Nel cash provMied by operstmg activities,less dividends ($000's) $ 94,807 $104,547 $ 109,020 Capital expenditures, excluding AFUDC $ 63,044 $ 94,743 $ 66,390 ;
Other Financial and Statistical Data =
Sales by cleos (MWH's) .
Residential 1,892,955 1,844,041 1,799,456 Commercial 2,285,942 (2) 2,359,023 2,303,216 (2)
. Industrial 1,135,831 (2) 1,036,547 997,166 (2) l Other 48,718 50,715 52,984 Total 5,363,446 5,290,326 5.152.824 Number of retail customers by class (everage)
Residential 275,441 273,752 273,936 Commercial 28,394 (2) 28,968 28,848 (2) industrial 1,538 (2) 959 1,017 (2)
Other 1,127 1,175 1,358 Total 306,500 304,854 305,159 Revenue per kilowett hour by class (cents)
Residential 13.33 12.92 12.58 !
Commercial 10.97 10.88 11.00 Industrial 9.18 9.40 9.73 Average large industrial customers time of use rete (cents) 8.69 8.89 8.84 I System requirements (MWH) 5.652,657 5,630,581 5.475,664 Peak load - kilowetts 1,130.780 1,114.900 1,034,440 g Generating capability. peak (kilowetts) 1,462,290 1,515.420 1,402,800 i Load factor 57.07 % 57.65 % 60.26 %
Fuel generation mix percentages Coal 35 31 34 j GI 14 16 17 '
Nuclear 32 38 35 Copeneration 9 8 8 Gas 4 1 1 Hydro 6 6 5 !
Revenues - ratesi se6es ($000's) !
Base $619,097 $ 605,887 $608,176 !
Fuel Adjustment Clause (229) (2,328) (41,221)
Sales Provision Adjustment 0 0 21.031 Total $ 618,868 $ 603,559 $ 587,986 Revenue retail sales per KWH (cents)
Base 11.54 11.45 11.80 Fuel Adjustment Clause 0.00 (0.04) (0.80)
Sales Provision Adjustment 0.00 0.00 0.41 Total 11.54 11.41 11.41 Fuel and energy cost per KWH (cents) 1.76 1,75 2.43 Fossil 2.14 2.08 2.98 Nuclear 0.94 1.23 1.42 Number of employees 1,377 1,490 1,554 Total payroll (4000 *S) $75.441 $75.305 $74.052 (1) includes the cumulative effect of accounting change for postemployment benefits, which decreased earnings by $0.09 per shore, (2) includes reclassification of certain Commercial and Industrial customers.
1991 1990' 1989 1998 1987 1988 1985 13,899,906 13,887.748 13,887,748 13,887.748 13,887,654 13,827,431 13,623,093 13,932,348 13,887,748 13,887,748 13,887,748 13,887,748 13,886,566 13,720,050
$ 3.67 (4) 83.55 ($ 5.87) 84.85 (80.24) 80.93 $ 6.07 828.84 827,35 826.11 834.11 831.58 $ 34,29 835.95 13.01 % 13.39 % 18.88 % 14.75% -0.72 % 2.64 % 17.83 %
13.39 % 13.97 % 20.21 % 32.91 % 15.34 % 16.81 % 16.21 %
$2.44 82.32 82.32 $ 2.32 $ 2.32 $ 2.32 $ 2.08 839.125 $34.125 834.250 $ 27.500 $ 34.000 $ 36.250 827.125
$ 30.000 826.875 424.750 $19.125 421.250 $ 26.625 813.750
$ 39.000 $31.125 $34.250 $26.875 $ 26.875 $ 29.250 827.000 873,865 $ 39,189 $ 31,437 $40,607 ' $37,986 $ 16,796 847,239
$63,157 $64.018 $77,041 883,735 $73,253 8116.124 $ 116.480 1,851,447 1,826,700 1,883.363 1,870,318 1,780,333 1,700,302 1,654,591 2,347,757 2,259,340 2,254,099 2,174,200 2,046,289 1,914,889 1,810,192 980,071 1,060,751 1,109.119 1,186,336 1,236,151 1,232,209 1,286,402 55.118 58,013 60,427 61,303 62,246 65,533 68,064 5,234,393 5,204.804 5.307.008 5.292,157 5,125.019 4,912.933 4,819,249 274,064 275,637 276,385 274,884 271,302 267,509 264,112 29,768 29,808 29,526 28,826 28,103 27,215 26,679 2 68 319 347 367 369 372 386 1,361 1,352 1,316 1,267 1,191 1,179 1,145 305,461 307,116 307,574 305,344 300,965 296,275 292,322 12.25 11.60 10.89 10.70 10.60 10.48 11.54 10.89 10.39 9.75 9.60 9.58 9.45 10.64 9.38 8.91 8.37 8.15 8.12 8.11 9.22 8.64 8.06 7.58 7.14 7.04 6.79 n/a 5,541,477 5,501,495 5,603,502 5,581,897 5,403,519 5,182,516 5,058,084 1,145,820 1,054,600 1,094,400 1,132,100 1,039,600 985,710 1,019,980 1,474,190 1,449,600 1,289,800 1,271,500 1,236,000 1,309,700 1,169,700 55.21 % 59.55 % 58.45 % 56.13 % 59.33 % 60.02 % 56.61 %
34 43 39 37 42 37 40 21 24 37 41 37 53 51 29 20 11 11 10 9 9 9 9 9 7 1 0 0 4 3 3 0 5 0 0 3 1 4 5 1 0 8607,997 $ 589,346 8577,611 < 574,422 8558,060 8537,147 8532,264 (37,497) (45,900) (49,778) (59,054) (63,514) (68,536) (19,722) l 14,814 8,211 0 0 0 0 0 8585,314 $ 551,657 8527,833 8515,368 $494,546 8468,611 8512.542 l
11,62 11.32 10.88 10.85 10.89 10.93 11.04 (0.72) (0.88) (0.93) (1.11) (1.24) 11.3 9) (0.40) ;
0.28 0.16 0.00 0.00 0.00 0.00 0.00 !
11.18 10.60 9.95 9.74 9.65 9.54 10.64 2.67 2.63 2.78 2.53 2.54 2.45 3.48 3.11 2.89 2.98 2.74 2.58 2.58 3.71 1.62 1.55 0.89 0.87 0.94 1.02 1.01 1,571 1,587 1,627 1,620 1,604 1,576 1,501 871,888 869,237 465,175 $ 62,387 $ 57,207 $ 52,782 $49.150
- i. (3) includes the effect of a reorganization cher9e which decreased earnings by 8.56 per share.
(4) includes the cumulative effect of accounting change for rnunicipal property taxes, which incrossed earnings by 40.53 per shore.
33- 1
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Item 7. M-- rement's Discussion and Analysis of Financial Condition and Results of Operations.
MAJOR INFLUENCES ON FINANCIAL CONDITION The Company's financial corutition will continue to be dependent on the level of retail and wholesale sales. l I
The two primary factors that affect sales volume are economic conditions and weather. A 1% increase in retail sales would increase revenues by $6.0 million (sales margin by about $5.0 million). However, a return to normal ]
weather could decrease revenues by $4.5 million (sales margin by $3.4 million).
Another major factor affectag the Company's financial condition will be the Company's ability to control expenses A significant reducuon in interest expense has been actueved since 1989, and additional savings of
$4-$5 million are expected in 1995 due to ddt reduchon and refinancing. Since 1990, pannat growth in total operauon and maintenance expense, excluding one-time items and cogenerauon capacity purchases, has averaged approximptely 2.0%, and the Company hopes to restnct future increases to less than the rate ofinflation.
LIQUIDITY AND CAPITAL RESOURCES The Company's capital requirements are presently projected as follows:
M M 1997 M M (000's)
CapitalExpenditure Program 5 75,840 $76,176 $ 51,816 5 60,768 $ 92,880 IAng-term Debt Maturities 97,000 - 50,000 100,000 100,000 j Mandatary Redemptions / Repayments 66.133 12.770 15.171 15.562 15.988 l i
Total Capital Reqmrements SM8,2H $88.2M $Un3.82 $Ufi MQ $208,868 l
The Company presently estimates that its cash on hand and -.,,os.ry cash investments at the beginmag of l 1995, totaling $11.4 million, and its projected net cash prmided by operations, less dividends, of $105.3 million, will be sufficient to fund the Company's entire capital expenditure program of $75.8 million and $40.9 million of l the $163.1 million neceamary to satisfy the 1995 requirements for long-term debt maturities and spandatary l long-term debt redemptions and repayments. The Company presently estimates that its projected net cash provided j by operations, less divulends, of $97.7 million, will be sufficient to fund the Company's entire capital expenditure program of $76.2 million and all of the Company's 1996 requirements for s.es.t.i.;siy 1. ;kws and repayments of $12.8 million. The Company presently estunates that its projected net cash provided by operations, less divulends, of $282.0 million, will be sufficient to fund the Company's entire capital expenditute program of $205.5 million and $76.5 million of the $296.7 million necessary to satisfy the 1997 through 1999 requirements for long-term d&t maturities and mandatory long-term ddt redenptions and repayments.
All of the Company's capital requirements that exceed available cash will have to be prmided by external financing. Although the Company has no commitment to prmide such financing from any source of funds, other than a $225 million revolving credit agreement with a group of banks, described below, the Company expects to bc l able to satisfy its external financing needs by issuing common stock, preferred stock and additional short-term and long-term debt, although the continued availability of these methods of financing will be dependent on many factors, including conditions in the securities markets, economic conditions, and the level of the Company's income and cash flow.
On August 18,1994, United Capital Funding Partnership L.P. (' United Capital'), a special purpose limited partnership in which the Company owns all of the general partner interests, was formed for the sole purpose of tesuing its limited partner interests, represented by Preferred Capital Securities (' Capital Securities"), and lending the proceeds thereof to the Company in return for Junior Subordinated Deferrable Interest Debentures
(' Subordinated Debentures'). United Capital and the Company have registered $100 million of Capital Securities and/or Subordinated Debentures for sale to the public from time to time, in one or more series, under the Securities j Act of 1933. The Company has also registered $200 million principal amount of Notes for sale to the public from time to time, in one or more series, under the Securities Act of 1933. ,
i At December 31,1994, the Company had $11.4 million of cash and temporary cash investments, a decrease of ;
$36.8 million from the balance at December 31,1993. 'Ihe components of this decrease, which are detailed in the ;
Consolidated Statement of Cash Flows, are summanzed as follows: ,
i (Mdhons) ;
Ralawe, December 31,1993 $_481 i
Net cash provided by operating methities 137.0 i
Net cash provided by (used in) financing activities: :
Financmg activities, excluding dividend payments (68.5) l
- Dividend payments (42.2) l Cash invested in plant, including nuclear fuel (fil)
Net decrease (36.8)
Balance, December 31,1994 $.11,1 The Company has a revohing credit agreement with a group of banks, which currently extends to December 14,1995. The borrowing limit of this facility is $225 million. The facility permits the Company to l borrow funds at a fluctuating interest rate determined by the prime lending market in New York, and also permits l I
the Company to borrow money for fixed periods of time specified by the Company at fixed interest rates determined by the Eurodollar interbank market in lendon, or by bidding, at the Company's option. If a material j adverse change in the business, operations, affairs, assets or condition, financial or otherwise, or prospects of the Company and its subsidianes, on a consolidated basis, should occur, the banks may decline to lend additional ;
money to the Company under this revohing credit agreement, although borrowings ontstanding at the time of such an occurrence would not then become due and payabic. As of December 31,1994, ti e Company had $67 million in short-term borrowings outstanding under this facility.
In January 1995, the Company entered into interest rue cap agreements, with several banks, to protect $100 million of its short-term debt from increases in short-term interest rates. The agreements provide that if the LIBOR (landon Interbank Offering Rate), for one-month borrowings, exceeds 8.50% on the 17th of any month during the period beginning Feoruary 17,1995 anJ ending January 17,1997, the banks will pay to the Company the difference between that LIBOR and 8.50%, multi,olied by $100 million, for the subsequent one-month period.
The Company's long-term debt 5struments do aot limit the amount of short-term debt that the Company may issue. The Company's revohing credit agrerinent described above requires it to maintain an available earnings / interest charges ratio of nM less than 1.5:1.0 for each 12-month period ending on the last day of each calendar quarter. For the 12-month period ended December 31,1994, this coverage ratio was 2.86.
The Company has a Fossil Fuel Supply Agreement with a financial institution prmiding for financmg up to
$37.5 million in fossil fuel purchases. Under this agreement, the financing entity acquires and stores natural gas, coal and fuel oil for sale to the Company, and the Company purchases these fossil fuels from the financing entity at a price for each type of fuel that reimburses the financing entity for the direct costs it has incurred in purchasing and storing the fuel, plus a charge for maintaining an inventory of the fuel determined by reference to the fluctuating interest rate on thirty-day, dealer-placed commercial paper in New York. The Company is obligated to insure the fuel inventories and to indemmfy the financing entity against all liabilities, taxes and other expenses I
- - ~ - - - - - . - - - . . - - - . - . . . . - - .--
e incurred as a result ofits ownership, storage and sale of fossil fuel 13 the Company. This agreement currently .
extends to March 1996. At December 31,1994, approximately $10.7 million of fossil fuel purchases were being financed under this agreement.
UI has three wholly owned subsuhanes Research Center, Inc. (RCI) has been formed to participate in the development of one or more regulated power production ventures, including possible participation in arrangements for the future development of i='-i-- +=t power production and cogeneration facilities. United Energy International, Inc. (UEI) was formed to facilitate participation in a joint venture relating to power production plants abroad United Resources, Inc. (URI) serves as the parent corporation for several unregulated businesses, each of which is iwii~i.a-4 separately to participate in business ventures that will complement and enhance UI's electric utility business and serve the interests of the Company and its shareholders and customers.
Four wholly-owned subsidianes of URI have been incorporated. Souwestcon Properties, Inc. (SPI) participated as a 25% panner in the ownership of a medical hotel building in New Haven, which has recently been sold. SPI no longer owns any property and is currently inactive. A second wholly-owned subsidiary of URI is Thermal Energies, Inc., which is participating in the development of district heating and cooling facilities in the downtown New Haven area, including the energy center for an office tower and participation as a 37% partner in the energy center for a city hall and office tower complex. A third URI subsidiary, Precision Power, Inc., provides power-related equipment and services to the owners of commercial buildings and industnal facilities. A fourth URI hhary, American Payment Systems, Inc., manages agents and equipment for electronic data processing of bill payments made by customers of utilities, including UI, at neighborhood businesses in addition to these l subsuiiaries, URI also has a 90% ownership interest in Ventana Corporation, which offers energy conservation engineering and project management services to governmental and private institutions.
l The Board of Directors of the Company has authorized the investment of a maximum of $18.0 million, in the aggregate, of the Company's assets in all of URl's ventures, UEl and RCl, and, at December 31,1994, l approximately $14.5 million had been so invested. l l
1 RESULTS OF OPERATIONS 1994 vs.1993 -
Earnings for the year 1994 were $43.5 million, or $3,09 per share, up $7.3 million, or $.52 per share, from 1993. This increase reflects $7.8 million (aAcr-tax), or 5.56 per share, from the absence of a one-time charge taken in the fourth quarter of 1993 for the estimated costs of a reorganization and early retirement program ;
amannamd with the Company's orgamzation review and cost reduction program. Earnings decreased $1.5 million l (aner tax), or $.10 per share, due to a one-time charge resulting from the settlement of a dispute with the City of j Bridgeport regarding past taxes payable by the Company on its personal property in that city. Earnings also decreased $1.3 million (aAer-tax), or $.09 per share, from an accounting change made in the first quarter of 1994 to implement Statement of Financial Accounting Standards No.112. Earnings per share for 1994, excluding one-time items and accounting changes, increased by $.15 per share, to $3.28 per share, from $3.13 per share for 1993.
Retail oprrating revenues increased about $15.3 million for the year 1994 over the year 1993: $12.5 million from retail rate changes, $7.1 million from higher retail kilowatt-hour sales and $1.2 million to recover higher
" pass-through" expenses, partly offset by $5.4 million from an increase in non cash revenue amortization.
The $12.5 million retail revenue increase due to rate changes resulted from a rate increase granted by the DPUC in 1992 effective January 1,1994. Included in this $12.5 million was $5.4 million to collect sales adjustment revenues booked in prior periods. A separate non-cash amortization charge to revenue was increased by $5.4 million to eliminate any current period revenue effect of these sales adjustment rate changes.
3 - i Retail kilowatt hour sales for the year increased 1.4% over the prior year, producing additional retail revenues of $7.1 million and additional sales margin (revenue less fuel expense and revenue-based taxes) of about # 0 million. There was virtually no retail kilowatt-hour sales change from weather factors between 1994 and 1993. ;
Weather for the year 'of 1994 was more severe than 'hormal", augmenting sales by 0.9% and producing revenues of about $4.5 million and sales margin of about $3.4 million. Retail revenues to recover ' pass-through" charges for certain expense changes, including fossil fuel, increased by $1.2 million in 1994 over 1993.
Wholesale 'tapacity" revenues increased by $0.6 million in 1994 from their 1993 level. Wholesale 'bnergy" l revenues, as well as the associated fuel expense, decreased by $11.6 million from 1993 to 1994. i Retail fuel and energy expenses increased $0.9 million for the year of 1994 over 1993. A sales margin ;
mcrease (reduction of expense) of about $1.2 million resulted from nuclear unit operations and nuclear fuel prices.
- There were other offsetting fuel expense increases of $2.1 million. i Operating expenses for operations, maintenana
- and purchased capacity charges in 1994 increased by $0.6
- million compared to 1993. Purchased capacity was $2.7 million lower than 1993 due to the absence of a scheduled j outage at the Connecticut Yankee Unit, compared to ten weeks of scheduled outage in 1993. Operation and i maintenance increased $3.3 million. A $5.1 million increase resulted from higher repair costs at Seabrook Unit 1.
reflecting nine weeks of scheduled outage and ten weeks of unscheduled outage in 1994. However, other operation and maintenance expenses decreased by a net $1.8 million, reflecting reduced maintenance costs at the Company's ,
f fossil fuel generating plants, the impacts of the 1993 reorganization and early retirement program, and re-engineering efforts. l Other operating expenses, excluding one-time items and their tax effects, increased approximately $7.6 l million in 1994 from 1993 due to higher depreciation and income taxes. l l
Other income and (deductions) decreased $13.2 million for the year of 1994 from the prior year, due principally to the climination of the deferred returns (after-tax and not representing current cash income) related to the portion of the cost of Seabrook Unit I that had not been in the Company's rate base in 1993 and the climination of the income tax benefits associated with the interest costs of carrying that portion of the unit's cost, lower AFUDC from lower construction costs and a lower AFUDC rate, the write-off of certain terminated project i costs previously capitalized, and higher losses related to unregulated subsidiaries. The revenue to support the increased rate base in 1994, and the income tax benefits of the associated cost of debt, are reflected in operating revenues and expenses.
Interest costs and preferred stock dividends decreased by $9.2 million in 1994 compared to 1993. Through its refinancing program, the Company has taken advantage oflower interest rates in both 1993 and 1994.
1993 vs.1992 Earnings for the year 1993 were $36.2 million, or $2.57 per shue, down $16.3 million, or $1.19 per share, from 1992. This decrease reflects a one-time reorganization charge of approximately $7.8 million after-tax, or
$.56 per share, and the non-recurrence of one-time gains of 5.59 per share in 1992. Earnings per share for 1993, excluding one-time items and accounting changes, decreased by $.04 per share, to $3.13 per share from $3.17 per share for 1992.
Sales margin increased by $10.3 million for the year. Retail revenues increased $36.6 million; $20.7 million from a recent rate decision ($12.1 million from rate changes, $20.8 million for the fold-in to base rates of the 1992 sales adjustment revenues, a reduction of $7.7 million in revenue from a separate amortization charge to eliminate the current period revenue effect of rate changes intended to collect sales adjustment revenues booked in prior periods, and the pass through to customers of expense credits of $4.6 million), and $15.9 million from increased retail sales. Retail sales increased by 2.7%, mostly due to a return to more normal summer weather.
, - , , n -. . .. - , - . _ . _ . .
m
+
'!)e retail revenue increases were offset by anticipated reductions of $20.8 million from the sales adjustment
. provision and $13.7 million in wholesale capacity revenues. Other operating revenues decreased by $0.3 million.
Reductmas in wholesale energy revenues of $15.8 adhon were directly offset by rathicenaae in energy expense.
Other factors affecting sales margin were lower retail fuel expense, increasing margin by $9.4 million, and higher revenue related taxes, decreasmg' margin by $0.6 mdhon.
Other operation and maineenmarm expenses, including purchased capacity charges, increased by $10.2 million, or 4.5%, in 1993 relatsve to 1992. Maior generating station overhauls and =ancharhilari repairs accounted for $5.2 nulhon of this increase Employment costs increased by $4.0 million, most of which resulted from the adoption of I a liability for postretirement benefits other than pensions that the * .' ^ = of Rennenene of Financial
{
Accounting Standards No.106 requires to be accrued over employees' careers Purchased capacity charges 1 i
(cogeneration and r'annarenc=e Yankee power purchases) for 1993 increased by $4.0 milhon, transmission cxists increased by $2.4 million; but other nuclear operation and maintenance expenses decreased by $4.0 milhon.
Other operating expenses, including income taxes but excluding a 1993 fourth quarter one-time reorganiv=eiaa charge, decreased by $20.3 authon in 1993 from 1992, as the effect of arvaintinf treatments ordend in recent rate l decisions for secovery of e==~lari plant, the flow-through to income of certain income tax benefits and lower {
property taxes more than offset increases in depreciataan expense.
Other incame declined by $23 million in 1993 from 1992, $9A million of which was attributable to the absence of net one-time gains realized in 1992. 'Ibe remainder was due primarily to an expected decline in deferred revenue and income tax benefits associated with the DPUC's 1992 rate decision, offset, in part, by lower interest charges of $9.3 million. " Net" interest margin (interest income less interest expense) improved by $6.6 mdhon in 1993 over 1992.
OUTLOOK Revenues for 1995 will increase by $13.1 million compswed to 1994 due to the completson of the non-cash j amorearmenaa of deferred sales a(pustment revenues ($7.7 millios amortized and collected in rates in 1993 and l
$13.1 million amortized and collected in rates ir. '594). Reventes for 1995 should also increase as a result of an j approximate 1% ($6 nuthon) rate incmase for recovery, thrugh the Conservation Adjustment Mechanism, of previously recorded and projected conservation costs.
The Company's financial condition will continue to be dependent on the level of retail and wholesale sales.
The two pnmary factors that affect sales volume are economic conditions and weather. A 1% increase in retail sales would increase revenues by $6.0 niillion and sales margin (revenue less fuel expense and revenue based 1 taxes) by about $5.0 million. 'Ihe Company has expenenced hal"(nonweather-related) growth in kilowatt-hour sales of approximately 0.7%, on average, per year since 1992. However, a return to normal weather in 1995 could decrease revenues by 0.7%, or $4.5 million (sales margin by $3.4 million). A coneimmation of the 1992-1994 hal" sales growth trend would be offset by a return to nonnal weather.
Sales margin should improve further from lower fuel expense in 1995. Higher generating output from the nuclear units (there is currently no planned outage for Seabrook in 1995) and lower nuclear fuel prices could add
$3-$4 million to margin if normal operating assumptions are met. However, if the generation level is higher than expected from the Scabrook unit, a refueling outage, currently planned for early in 19%, may move, partially or fully,into 1995.
Taking all of the above factors into account, overall sales margin would be expected to increase in 1995, compared to 1994, by $23-$25 million. These increases will be offset by the commencement of the amortization of Seabrook phase-in costs at $12.6 million aAct-tax (equivalent, approximately, to a $23 million revenue requirement) per year for five years beginning in 1995.
1
Another major factor affecting the Company's financial condition will be the Company's ability to control expenses. Operatian and maintenance expense is expected to decline by several million dollars in 1995 compared .
l to 1994, due primarily to lower maintenance costs at generating units, the full impact of the Company's 1993 l l reorganization and early retirement program, and other cost reduction efforts. Anticipated depreciation and i I
property taxes should increase expenses by $4-$5 million in 1995 from 1994 levels.
The Company expects continued reductions in interest expense from the 1994 level of $84 millioncto about j
$79-$80 million at February 1995 interest rate levels. This 1995 interest expense level would be 30% below the 1 l 1989 level and would ma;k the sixth consecutive year of interest expense decline. Similar interest expense reductions are expected for 1996, as well, assuming February 1995 interest rate levels.
A major contingency in the Company's expected earnings for 1995 is the timing of the Seabrook refueling outage. If the refueling outage moves fully into 1995,1995 sales margin would be reduced by about $2 million, and operations and maintenance expense would be increased by $3-$4 million over currently anticipated amounts.
These negative effects on 1995 earnings would affect anticipated 1995 results positively. The Company continues to expect to achieve growth in earnings from operations of 4% annually, on average, from its 1992 level of $3.17 per sharc.
The Company's financial status and financing capability will continue to be sensitive to many other factors, including conditions in the securities markets, economic conditions, interest rates, the level of the Company's income and cash flow, and legislative and regulatory developments, including the cost of compliance with increasingly stringent environmental legislation and regulations and competition within the electric utility industry.
The electric utility industry is being subjected to increasing competition. Currently, the Company's retail electric service rates are subject to regulation and are based on the Company's costs. Therefore, the Company, and all regulated utilities, are subject to certain accounting standards (Statement of Financial Accounting Standards (SFAS) No. 71, " Accounting for the Effects of Certain Types of Regulation") that are not applicable to other businesses in general. 'Diese accounting rules allow all regulated utilities, where appropnate, to defer the income statement impact of certam costs that are expected to be recovered in future regulawl service rates and to establish regulatory assets on balance sheets for such costs. The effects of competition could cause the operations of the Company, or a portion thereof, to fail to meet the criteria for application of these accouming rules. While the J Company expects to continue to meet these criteria in the near future, if the Company were to cease meeting these I criteria, accounting standards for business in general would become applicable and immediate recognition of any previously deferred costs would be required in the year in which the criteria are no longer met. If this change in accounting were to occur, it would have a matenal adverse effect on the Company's earnings and retained earnings ,
in that year and may have a material adverse effect on the Company's ongoing financial condition, as well.
l INFLATION Much of the Company's opemting expense structure is based on fixed charges for plant, purchased power, fuel expense and taxes that have no direct relationship to ' inflation"as defined by the Producer Price Index (PPI). That ,
portion of fuel expense (fossil fuel expense) which is a factor in the PPI, is subject to a ' pass-through" revenue recovery from customers. The operations expense component most sensitive to inflation, utge and benefit costs, account for about 15% of the Company's total operating expenses excluding income taxes.
A significant portion of the ' fixed charges for plant" component of operating expenses is based on the historic cost of the Company's generating units. Under current conditions the cost of future additional or replacement generating capacity, if needed, would probably be less than the cost of existing generating capacity.
i 1
39 -
l _
Item 8. Financial G8=*===a=*= and Supplesmentary Daft o
THE UNITED ILLUMINATING COMPANY .
CONSOLIDATED STATEMENT OFINCOME For the Years Ended December 31,1994,1993 and 1992 (nousands except per share asseumes) -
~
12kl 1221 1222'
$656,748 $653,023 $667,325 Operating Revenues (Note G)
Operating Expenses
& 138,050 163,253 Fuel and energy 127.354 Capacity purchased 44,769 47,424 43,560 L v. A charge - 13,620 -
Other 151,330 148,332 145,032-Maia*===~ 41,768 '41,475 38,394 Depreciation 58,165 56,287 50,706 Amortization of cancelled nuclear project (Note J) 1,172 1,172 10,415 Amortization of deferred fossil fuel costs .
608 -
l 44,937 33,309 48,712 !
Income taxes (Note A and E)
Property tax settlement 2,536 - -
57,325 57,932 59,231 '
Other taxes (Note G) 529,356 538,209 559,303 Total Cm ' ; 1=e===* 127,392 114,814 108,022 Other incamie and (Deductions)
Allowance for equity funds used during construction 753 999 1,003 Deferred return - Seabrook Unit 1 - 7,497 15,959
- (1,907) 71 18,545 Other-net (Note G)
Non-operating income taxes 3,214 6.322 12.558 Total 2.060 14,889 48,065 i I
Incosne Before Interest Charges 129,452 129,703 156,087 laternet Charges t Interest on long-term debt 73,772 80,030 88,666 !
10,301 12,260 12,882 l Other interest (Note G)
Allowance for 1a nn, d funds used during construction (2,710) (3,068) (2,229) !
Not Interest Charges 81,363 89,222 99,319 :
Inconne Before Cumulative Effect of Accounting Change 48,089 40,481 56,768 !
Cunnulative effect for years prior to 1994 of accounting {
change for postemployment benefits (net ofincome taxes of $956)(Note H) (1,294) - - !
Net Income 46,795 40,481 56,768 Dividends on Preferred Stock 3,323 4,318 4.338 ;
Income Applicable to Common Stock $43,472 $36,163 $52,430 Average Number of Common Shares Outstanding 14,085 14,064 13,941 Earnings per share of Common Stock before ;
cumulative effect of accounting change $3.18 $2.57 $3.76 l l
i Cumulative effect for years prior to 1994 of accounting l change for postemployment benefits (0.09) - -
Earnings per share of Common Stock $3.09 $2.57 $3.76 !
l Cash Dividends Declared per share of Common Stock $2.76 $2.66 $2.56
, l t
- I The accompanying Notes to Consolidated Financial 1 l Statements are an integral part of the fmancial statements. ;
, - 40 ,
I
.,.e 4- - _ _ . , _ _ . _
w -
THE UNITED ILLUMINATING COMPANY
> CONSOLIDATED STATEMENT OF CASH FLOWS j
~
For the Yearu Ended Decennber 31,1994,1993 and 1992 l (nessands er Douars) 1224 1221 1222 <
Cash Hows From Operating Activities !
Net Income $46,795 $40,481 $56,768 l Adjustments to reconcile net income l to net cash provided by operating activities:
Depreciation and amortization 67,336 65,788 70,298 l Deferred income taxes 9,541 9,422 31,093 l Defened investment tax credits - net 062) 062) 062) ,
Gain on sale of facility - - (5,915) -
11,632 21,922 23,440 j Amortization of nuclear fuel Cumulative effect for years prior to 1994 of accounting change for postemployment benefits - net 1,294 - - i Allowance for funds used during construction (3,463) (4,067) (3,232)
Deferred return - Seabrook Unit 1 - (7,497) (15,959) .
Sales adjustment revenue 13,113 7,668 (6,217) l Changes in: 1 Accounts receivable - net 2,840 3,?,44 (4,637)
Fuel, materials and supplies (1,140) (638) 1,481 Prepayments (7,344) (1,833) 1,503 ,
Accounts payable (6,578) (10,098) 7,672 >
Interest accrued (1,046) (2,431) (6,918)
(1,829)
Taxes accrued 9,756 1,017 13,620 -
)
Reorganization charge accrued - 1 Other assets and liabilities (4,989) 9,920 1,851 Total Adjustments 90,190 105,375 91,869 ,
Net Cash Provided by Operating Activities 136,985 145,856 148,637 f
Cash Mows from Financing Activities l Common stock 109 1,834 3,442 ,
Iong-term debt - 164,460 247,000 ;
. Notes payable 67,000 (84,099) 71,099 l Securities redeemed and retired: l Preferred stock (15,858) - (1,695) '
long-term debt (117,391) (143,543) (214,811)
Expenses ofissues - (1,742) (1,453)
Iaase obligations (2,362) (4,174) 01,866) l Dividends Preferred stock (3,658) (4,318) (4,365)
Common stock (38,520) (36,991) (35,252) :
Net Cash used in Financing Activities (110,680) (108,573) (7,901) l Cash Hows from Investing Activities Plant expenditures, including nuclear fuel (63,044) (94,743) (66,390)
Proceeds from sale of facility - - 6,012 Investment in debt securities - 94,529 (94,529) ;
Net Cash used in Investing Activities (63,044) (214) (154,907) !
Cash and Tesnporary Cash Investments:
Net change for the period (36,739) 37,069 (14,171) j Ba!ance at beginning of period 48,171 11,102 25,273 Balance at end of period $11,432 $48,171 $11,102 Cash paid during the period for:
Interest (net of amount capitalized) $75,802 $78,021 $82,829 l Income taxes $25.555 $17,435 $12,634 The accompanying Notes to Consolidated Financial [
Statements are an integrel part of the financial statements. l THE UNITED ILLUMINATING COMPANY CONSOLIDATED CALANCE SHEET ;
December 31,1994,1993 and 1992 -.
ASSETS (Thousands of Dollars) 129.4 1222 129.2 Utility Plant at Original Cost In service $1,761,627 $1,690,142 $1,631,787 -
Less, accumulated provision for depreciation 493,482 446,716 407.729 l
~
1,268,145 1,243,426 1,224,058 Construction work in progress 57,669 77,395 59,809 Nuclear fuel 31,443 40,285 52,144 Net Utility Plant 1,357,257 1,361,106 1,336,011 Other Property and Investments 21,824 17,811 13,176 i Current Assets Cash and temporary cash investments 11,432 48,171 11,102 -
Short-term investment - - 94,529 Accounts receivable Customers, less allowance for doubtful accounts of $4,900,54,700 and $3,900 61,042 62,703 56,796 i Other 26,981 28,160 37,411 i Accrued utility revenues 23,139 22,765 24,389 Fuel, materials and supplies, at average cost 22,318 21,178 20,540 Prepayments 12,307 4,%3 3,130 Other 90 41 ,
57 Total 157,309 187,981 247,954 i Regulatory Assets (future amounts duefrom e momers j shrough the ratemaking process) l Income taxes due principally to book-tax j differences (Note A) 403,132 408,272 406,258 l Deferred stum - Seabrook Unit 1 ' 62,929 62,929 55,432 Unamortized cancelled nuclear projects 25,792 26,964 28,136 Unamortized redemption costs 26,269 32,573 28,186 l Sales adjustment revenues - 13,113 20,781_ !
Uranium enrichment decommissioning costs 1,540 1,600 - l Defermd fossil fuel costs 112 198 1,109 Unamortized debt issuance expenses 5,527 6,631 6,474 Other 13,300 15.114 10,117 Total 538,601 567,394 556,493
$2,074,991 $2,134,292 $2,153,634 The accompanying Notes to Consolidated Financial Statements are an integral part of the fmancial statements.
THE UNITED ILLUMINATING COMPANY CONSOLIDATED CALANCE SHEET
- ~
December 31,1994,1993 and 1992 '
CAPITALIZATION AND LIABILITIES (thousands of Dollars) j 122.4 129.1 1222 .
5 Capitalization (Note B) ,
Common stock equity l Common stock $284,133 $284,028 $282,433 ;
^
P id-in capital 738 734 495 Capital stock expense (2,402) (3,163) (3,163)
Retamed eamings 145,559 141,725 142,981 ;
423,324 422,746 ;
428,028 Preferred stock 44,700 60,945 60,945 Long-term debt 708,340 875.268 893,457 Total 1,181,068 1,359,537 1,377,148 <
i Noncurrent Liabilities ;
Obligations under capitalleases 17,799 19,871 23,855 l
Uranium enrichment decommissioning reserve 1,337 1,486 - ,
Nuclear decommissioning obligation 7,628 5,606 -
l Other 2.517 2,156 1,998 [
Total 29,281 29,119 25,853 Current Liabilities Current portion of long-term debt 193,133 143,333 92,833 ;
Notes payable 67,000 - 84,099 Accounts payable 42,846 49,424 59,522 Dividends payable 10,467 10,445 10,017 Texes accrued 16,607 6,851 5,834 <
18,714 '
Pensions accrued (Note H) 30,177 33,547 Interest accrued 20,926 21,972 24,403 l Obligations under capital leases 1,169 1,838 2,028 l Other accrued liabilities 30,069 26,813 12.953 412,394 294,223 310,403 Total 2.628 2,667 2,672 Customers' Advances for Construction RTgulatory Liabilities (future amounts owed to customers through the ratemaking process)
Accumulated deferred investment tax credits 18,671 19,433 20,195 Deferred gain on sale of utility plant 276 2,070 3,391 Other 1,820 1,837 -
20,767 23,340 23,586 Total Deferred Income Taxes (future tax liabilities owed to raring authorftles) 428,853 425,406 413,972 Commitments and Contingencies -
$2,074,991 $2,134,292 $2.153,634 The accompanying Notes to Consolidated Financial Statements are an integral part of the financial statements.
m
- o THE UNITED ILLUMINATING COMPAhT CONSOLIDATED STATEMENT OF RETAINED EARNINGS i For the Years Ended Deconber 31,1994,1993 and 1992 (n assess or pesars) )
i 122d 1222 1222 Balance, January 1 $141,725 $142,981 $125,448 Net Income 46,795 40,481 56,768 '
Adjustments associated with repurchase {
of preferred stock (761) . 796 j Total 187.759 183,462 183,012 !
t Deduct Cash Dividends Declared t Preferred stock 3,323 4,318 4,338 l Common stock 38,877 37,419 35,693 Total 42,200 41,737 40,031 :
Balance, December 31 5145,559 5141,725 $142,981 l
l l
l I
I i
The accompanying Notes to Consolidated Financial Statements are an integral part of the financial statements.
44
j l
THE UNITED ILLUMINATING COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS I (A) STATEMENT OF ACCOUNTING POLICXES j t !
I ;
A--
- Beeerds l j- The accounting records are warmined in accordance with the undorm systems of ===== preecnbod by the
- l j Federal Energy Regulatory ra==== (FERC) and the raaaar*=* Department of Pubhc Utility Control !
4 (DPUC) l 1
1
- The consohdated finnamal state:nents of the rampany are in conformity with generally accepted accounting l pnnciples and with accountang for regulated electric milianas preecnbod by the Federal Energy Regulatory 1 e--na= (PERC) and the r=am=* Department of Pubhc Utility Control (DPUC). Generally accepted l accounting pancipios for regulated entities allow the ra pany to give acmuntang recognition to the actions of i regulatory authorities in accordance with the provisions of Qana=ans of Finaamal Accounting Standards (SFAS) ]
. No. 71, "Am=miar for the Effects of Certain Types of Regulation". In acconiance with SFAS No.71, the !
Company has deferred recognition of costs (a regulatory asset) or has recognaaed obligatsons (a regulatory liainlity) if it is probable that such costs will be recovered or obligation reheved in the future through the rme=alriar l l
Process ,
l Principles of e-amandnes== !
The canaalidatad financial maa*=a=** include th: ===ner of the Company and its wholly owned subsuhanes,-
United Resources Inc., United Energy laternanianal Inc. and Research Center, Inc. 1- - , ,, ===ase and transactions have been alimiansad in naamalidanian Reclassineation of Previously Reported Ameants Cestam ===aen previously reported have been reclass: Sed to confonn with current year pnsentatsons Utility Plant
- !he cost of additions to utility plant and the cost of renewals and betterments ase spitahzed Cost anamme of labor, materials, semces and certain indirect constructson costs, including an allowance for funds used dunng constructaan (AFUDC) The cost of current repairs and nunor replamnente is charged to appropnate operating expense =====. The enganal cost of utility plant retared or otherwise dispoemd of and the cost of removal, less salvage, are charged to the accumulated provision for deprananian The Company's utility plant in service as of December 31,1994,1993 and 1992 is comprised as follows:
1291 1221 1222 Production $1,114,755 $1,104,156 $1,083,247 Transmission 143,984 129,186 126,211 Distributaon 364,102 334,251 319,409 <
General 43,600 41,009 42,065 !
Future use plant 31,853 29,221 26,537 i Other 63.333 52.319 34.318 I
$1761627 SL620.H2 $L61L282 1
i I
L- , - , . - - . - - , _ . . - . . . . - _ _ _ . - - . . _ _ _ _ . - - - . .'
~
"m
~*
THE UNITED ILLUMINATING C1MPANY NOTES 10 CONSOLIDATED FINANClaL STATEMENTS -(amemmes)
Allowance for Funds Used During Constructies In accordance with the apphcable regulatory systems of accounts, the Company capitalizes AFUDC, which represents the approximate cost of debt and equity capital devoted to plant under construction. In accordance with FERC y.m..a accounting, the portaon of the allowance applicable to borrowed funds is presented in the ,
Consoluined Sensevnent oflacome as a reduction ofinterest charges, while the postaan of the allowance applicable to equity funds is y.- : as other income Although the allowance does not represent current cash in-ne, it has histoncally been recoverable under the raseenakinf process over the semce lives of the related properties The Company compounds semi. annually the allowance applicable to major constructaan projects. Weighted average AFUDC rates in effect for 1994,1993 and 1992 were 8.19%,8.75% and 10.25%, respectively.
Depreciation Pronssons for depreciation on utility plant for book purposes are computed on a straight-line basis, using eatiniasM semcc lives determined by independent engineers. One-half year's depreciation is taken in the year of addition.and disposition of utility plant, except in the case of major operatiag units on which .: r.h
=nenen= in the anonth they are placed in semce and ceases in the month they are removed from semcc The aggregate annual provisions for depreciation for the years 1994,1993 and 1992 were equivalent to approximately 3.27%,3.22% and 3.15%, respectively, of the original cost of.L.y. W property.
1=ca=* Tases Effective January 1,1993, the Casupany adopted Statement of Financial A-==ning R =ndards (SFAS) i No.109 " Accounting for Income Taxes". In accordance with SFAS No.109, the Company has pronded deferred i taxes for all temporary book tax differences using the liability snethod. The liability awahad requires that deferred i tax halan= be adjusted to reflect enar*M future tax rates that are saticipated to be in effect when the ^ r.,..iy ddierences reverse. In accordance with generally ampeM accounting principles for regnineM industnes, the Company has establishM a net regulatory asset that reflects anticipated future recovery in rates of these deferred a tax provisions. I For ratemaking purposes, the Company pracuces full normalization for all investment tax credits (lTC) related to recowrsble plant investments except for the ITC related to Seabrook Unit 1, which was taken into income in accordance with provisions of a 1990 DPUC retail rate decision.
Accrued Utility Revemmes The estimated amount of utility revenues (less related expenses and applicable taxes) for service rendered but not billed is accrued at the end of each accounting penod.
Cash and Cash Equivalents For cash flow purposes, the Company considers all highly liquid debt instruments with a maturity of three mon'hs or less at the date of purchase to be cash equivalents. The Company records outstanding checks as accounts payable until the checks have been honored by the banks.
The Company is required to maintain an operating deposit with the project disbursing agent related to its 17.5% ownership interest in Seabrook Unit 1. This operating deposit, which is the equivalent to one and one half 46 -
y.
'~
THE UNITED ILLUMINATING COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMEN'IS -(-)
i months of the funding requirement for operating expenses, is restricted for use ar.d amounted to $2.3 million, $3.4 j million and $2.9 million, at December 31,1994,1993 and 1992, respectively, j i
--Is m a !
The Company's inveenwat in the Connecticut Yankee Atomic Power Company joint venture, a nuclear generating company in which the Company has a 91/2% stock interest, is amanasad for on an equity basis. This invasenwat amounted to $9.6 million, $9.5 million and $9.4 million at December 31,1994,1993 and 1992, respectively.
Fossil Fuel Cests The n=w== of fossil fuel costs that cannot be reDected currently in customers' bills pursuant to the fossil fuel a4parme=e clause in the Company's rates is deferred at the end of each accounting penod, Since adoption of the deferred =manating FAs in 1974, rate decisions by the DPUC and its g+' . have consistently made specific provision for amortazasson and rate-making treatment of the Company's existing deferred fossil fuel cost ,
hatanen j l
Research and L ' ;-- t Cests Research and development costs, including enviroanunnal studies, are capitalized if related to specific
. construction projects and depreciated over the lives of the related assets. Other research and devek.,, at costs are j charged to expense as incurred.
Pensies and Other Postensployment Benents The Company accounts for normal pension plan costs in accordance with the provisions of Statement of Financial Accounting Standards (SFAS) No.87, " Employers' Accounting for Pensions", and for supplemental retirement plan costs and - ;,'-- tal early retirement plan costs in accordance with the provisions of SFAS No. 88, " Employers' Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for Termination Benefits". ;
i Prior to January 1,1993, the l'ampany accounted for other postemployment benefits, consisting principally of j health and life insurance, on a pay as-you-go basis. Effective January 1,1993, the Company commenced -)
accounting for these costs under the provisions of SFAS No.106, " Employers' Accounting for Postretirement ]
Benefits Other Than Pensions", which requires, among other things, that the liability for such benefits be accrued over the employment penod that encompasses eligibility to receive such benefits. The annual incremental cost of this accounting change has been allowed in retail rates in accordance with a 1992 rate decision of the DPUC. !
. l Effective January 1,1994, the Company adopted Statement of Financial Accounting Standards (SFAS)
No.112. " Employers' Accounting for Postemployment Benefits." This statement establishes accounting standards for employers who provide benefits, such as unemployment compensation, severance benefits and disability j benefits to former or inactive employees after employment but before retirement and requires recognition of the obligation for these benefits. The effect of adopting this statement is reported as a change in accounting principle i and decreased earnings for common stock for 1994 by $1.3 million or $.09 per share.
-47
.u t *<
TIIE UNITED ILLUMINATING COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -(eametanse)
Uranium Enrichment Obligation Under the Energy Policy Act of 1992 (Energy Act), the Company will be anae==arl for its proportionate share of the costs of th, decontaminarian and stammminaianing of uranian enrichment facilities operated by the Department of Energy The Energy Act imposes an overall cap of $2.25 billion on the obligation assessed to the nuclear utility inninstry and limits the annual anae==mant to $150 mdhon each year over a 15-year penod. At December 31,1994, the Company's unfunded share of the obligation, based on its ownership interest in Seabrook Unit I and Mdistone Unit 3, was approximately $1.3 million. Effective January 1,1993, the Company was allowed to recover these naa*=== ente in rates as a component of fuel expense. As,4 pf, the Company has ra==ni-l these costs as a regulatory asset on its Consolidated R= lance Sheet.
Nuclear DeccamaissionAng Trusts External trust funds are maintainarl to fund the estimated future h=- "- '; costs of the =rlaar generating units in which the Company has an ownership interest. These costs are accrued as a charge to depreciation expense over the estimated semce lives of the units and are is, sed in rates on a current basis. The Company paid $1,727,000, $1,616,000 and $1,334,000 during 1994,1993 and 1992 into the decommissioning trust funds for Seabrook Unit I and Millstone Unit 3. At December 31,1994, the Company's share of the trust fund balances, which include accumulated earnings on the funds, were $5.2 million and $2.4 million for Seabrook Unit I and Millstone Unit 3, respecuvely. These fund halaam are included in "Other Property and Investments" and the accrued decemnussuming obligation is included in "Ikssisnt Liabilities" on the Company's Consolidated Ratance SM i
le
- o THE UNITED ILLUMINATING COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (continued)
(B) CAPITALIZATION December 31, 1994 1993 1992 Shares Shares Shares Outstanding $(000's) Outstanding $(000's) Outstanding $(000's)
Common Stock Equity Common stock, no par value, 14,086,691 $284,133 14,083,291 $284,028 14,033,148 $282,433 at December 31(a)
Shares authorized 1992 30,000,000 1993 30,000,000 1994 30,000,000 Paid-in capital 738 734 495 Capital stock expense (2,402) (3,163) (3,163) )
Retained earnings (b) 145,559 141,725 142,981 Total common stock equity . 428.028 423,324 ~"I2,746 4
Preferred and Preference Stock (c)
Cumulative preferred stock, l
$100 par value, shares suthorized at December 31, )
1992 1,259,455 1993 1,259,455 1994 1,247,005 l Preferred stock issues: )
4.35% Series A 40,425 40,425 40,425 4.72% Series B 48,280 50,730 50,730 4.64% Series C 32,100 32,100 32,100 5 5/8% Series D 51,200 61,200 61,200 7.60% Series E 125,000 125,000 125,000 7.60% Series F 150,000 150,000 150,000 Cumulative preferred stock,
$25 par value, shares cuthorized at December 31, j 1992 2,400,000 1993 2,400,000 l 1994 2,400,000 Prefsrred stock issues:
8.8091976 Series - - 600,000 15,000 600,000 15,000 Cumulative preference stock,
$25 par value, shares cuthorized at December 31, 1992 5,000,000 1993 5,000,000 1994 5,000,000 Preference stock issues - -
Total preferred stock not subject to mandatory redemption 44,700 60,945 60,945 ;
7 x
THE UNITED ILLUMINATING COMPANY -
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (continued)
December 31, 1994 1993 1992
$(000's) - $(000's) $(000's)
Long-terni Debt (d)
First Montgage Bonds.
9.44%, Series B, matunng serially as to $10,800 principal amount on February 15 in each of the years 1995 to 1999. $54,000 $54,000 $54,000 10.32%, Series C, maturing serially as to $55,333 principal amount on January 15,1995 55,333 110,666 166,000 Other Img-term Debt -
~ Pollution Control Revenue Bonds:
141/2W,1984 Senes, due October 1,2009 - 110 :40,000 141/2%,1984 Series B, due December 1,2009 - 3,830 ' 28,400 ff 91/2%,1986 Series, due June 1,2016 7,500 7,500 7,500 .
' 9 3/8%,1987 Senes, due July 1,2012 25,000 . 25,000 25,000 {
' 10 3/4 %,1987 Series, due November 1, 2012 43,500 43,500 '43,500 i 8%,1989 Series A, due December 1,2014 25,000 25,000 25,000 5 7/8 %,1993 Series, due October 1, 2033 - 64,460 64,460 -
Solid Waste Disposal Revenue Bonds:
Adjustable rate 1990 Series A .
due hp--- '-u 1,2015 30,000 30,000 30,000 Notes:
7.62 %, 1991 Series A, due September 12,1994 - 30,000 30,000 J 7.20 %, 1991 Series B, due November 1,1994 - 13,000 13,000 6.82 %, 1991 Series C, due December 2,1994 - 10.000 10,000 i 6.00%,1992 Senes D, due January 15,1995 50,000 50,000 50,000 l 7,00%,1992 Series E, due January 15,1997 50,000 50,000 50,000- ;
7.25 %,1992 Series F, due October 2,1995 47,000 47,000 - 47,000 7 3/8 %,1992 Series G, due January 15,1998 100,000 100,000 100,000' s 6.20%,1993 Series H, due January 15, 1999 100,000 100,000 -
Long term bank loans - 5,000 17,500 ;
I Obligation under the Seabrook Unit 1 sale / leaseback agreement 250,000 250,000 250,000 901,793 1,019,066 986, 8 i Unamortized debt discount less premium at December 31,1994,1993 & 1992 (320) (465) (61Q Totallong-term debt 901,473 1,018,601 986,290 Less current portion included in Current 4 193,133 143,333 92,833 l Liabilities (d)
Total long-term debt included .
in Capitalization 708.340 875,268 893,457 )
Total Capitalization $1,181,068 $1,359,537 $1,377,148 l
1
)
l
^
L L-THE UNITED ILLUMINATING COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - te-w)
(a) Common Stock The Company issued 3,400 shares of common stock in 1994, 46,000 shares of common stock in 1993 and 100,800 shares of common stock in 1992 pursuant to a stock option plan. During 1993, the Compny also issued 4,143 shares of common stock pursuant to a long-term incentist program.
In 1990, the Company's Board of Directors and the sharcowners apprmed a stock option plan for officers and key employees of the Company. The plan prmides for the awarding of options to purchase up to 750,000 shares of the Company's common stock over periods of from one to ten years following the dates when the options are granted. On June 5,1991, the DPUC approved the issuance of 500,000 shares of stock pursuant to this plan. The exercise price of each option cannot be less than the market value of the stock on the date of the grant. Options to purchase 203,200 shares of stock at an exercise price of $30.75 per share,2,800 shares of stock at an exercise price of $28.3125 per share,1,800 shares of stock at an exercise price of $31.1875 per share,4,000 shares of stock at an exercise price of $35.625 per share,36,200 shares of stock at an exercise price of $39.5625 per share,5,000 shares of stock at an exercise price of $42.375 per share and 18,600 shares of stock at an exercise price of $30 per share have been granted by the Board of Directors and remain outstanding at December 31,1994. Options to purchase 98,000 shares of stock at an exercise price of $30.75 and 2,800 shares of stock at an exercise price of $28.3125 were exercised during 1992. Options to purchase 42,000 shares of stock at an exercise price of $30.75 per share, 1,400 shares of stock at an exercise price of $28.3125 per share,1,200 shares of stock at an exercise price of
$31.1875 per share and 1,000 shares of stock at an exercise price of $35.625 per share were exercised in 1993.
Options to purchase 3,400 shares of stock at an exercise price of $30.75 per share were exercised during 1994.
(b) Retained Earnings Restriction The indenture under which the Company's Notes are issued places limitations on the payment of cash dividends on common stock and on the purchase or redemption of common stock. Retained earnings in the amount of $37.2 million were free from such limitations at December 31,1994.
(c) Preferred and Preference Stock The par value of each of these issues was credited to the appropriate stock account and expenses related to these issues wer.: charged to capital stock expense.
In 1992, the Company purchased and cancelled 16,950 shares of its $100 par value 4.72% Preferred Stock, Series B, at a discount, resulting in a non-taxable addition to common equity of approximately $797,000.
There was no redemption of preferred stock in 1993.
On April 15,1994, the Company redeemed all of the 600,000 outstanding shares ofits 8.80% Preferred Stock, 1976 Series, at $25.25 per share plus accrued disidends.
In July 1994, the Company purchased 2,450 shares ofits 4.72% $100 par value Preferred Stock, Series B, at a discount, resulting in a non-taxable gain of $116,000.
In December 1994, the Company purchased 10,000 shares of its 5 5/8% $100 par value Prefer 9 &xk, Series D, at a discount, resulting in a non-taxable gain of $420,000.
Shares of preferred stock have preferential dividend and liquidation rights over shares of common steck.
Preferred shareholders are not entitled to gencial voting rights. However, if any preferred dividends are in arrears l
THE UNITED ILLUMINATING COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -(e a-3) for six or more quarters, or if some other event of default occurs, preferred shareholders are entitled to elect a majority of the Board of Directors until all preferred dividend arreais are paid and any event of default is termmated.
Preference stock is a form of stock that is junior to preferred stock but senior to common stock. It is noi subject to the carnings coverage requirements or minimum cr,pital and surplus requirements governing the issuance of preferred stock. There were no shares of preference stock outstanding at December 31,1994.
(d) Long-Term Debt In January 1994, the Company repaid $55.3 million principal amount of maturing 10.32% First Mortgage Bonds of Bridgeport Electric Company, a wholly-owned subsidiary of the Company that was subsequently merged with and into the Company, and a $5 million 13.1% term loan These repa>tnents were made with a portion of the net proceeds from the issuance and sale, in December 1993, of $100 million five-year and one month Notes at a ;'
coupon rate of 6.20%
On September 12,1994, the Company repaid at maturity $30 million principal amount of 7.62% Notes. In addition, on November 1,1994, December 2,1994 and January 17,1995, the Company repaid at maturity $13 million, $10 million and $50 million principal amounts of 7.20%,6.82% and 6.0*/. Notes, respectively.
On October 1,1994 and December 1,1994, the Company redeemed the remaining $110,000 and $3,830,000 principal amounts of 14 1/2 % 1984 Series, and 14 1/2 % 1984 Series B, Pollution Control Revenue Bonds, respectively, at a 3% premium.
On January 17,1995 and February 15,1995, the Company repaid $55.3 million and $10.8 million principal i amounts of raaturing 10.32% and 9.44% First Mortgage Bonds of Bridgeport Elec*ric Company, a wholly-owned j subsidiary of the Company that was merged with and into the Company in September of 1994.
On August 18,1994, United Capital Funding Partnership L.P. (' United Captal"), a special purpose limited i partnership in which the Company owns all of the general partner interests, was formed for the sole purpose of issuing its limited partner interests, represented by Preferred Capital Securities (' Capital Securities"), and lending the proceeds thereof to the Company in return for Junior Subordinated Deferrable Interest Debentures
(' Subordinated Debentures"). United Capital and the Company have registered $100 million of Capital Securities and/or Subordinated Debentures for sale to the public from time to time, in one or more series, under the Securities Act of 1933. The Company has also registered $200 million principal amount of Notes for sale to the public from time to time, in one or more series, under the Securities Act of 1933.
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THE UNITED ILLUMINATING COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - 9.= maned)
Maturities and mandatory redemptionshw.. and annual interest expense on existing long-term debt are set forth below:
M M M M M (000's)
IAng4erm debt (beginning of penodX1) $871,793 $708,660 $695,890 $630,719 $515,157 I.ess:
Maturities 97,000 - 50,000 100,000 100,000 Mandatary redempuans/ repayments 66.133 12.770 15.171 . 15.562 15.988 IAng-term debt (end of penodXIX2) $208.fi(Q $fi2182Q $fi20.212 $112.122 $222.lfi2 Annual interest manacia M with existmg a=watanding debt (IX2) $ $9,637 $ 55,221 $ 50,838 $ 42,930 $ 40,647 Annual amortizauon ofiaanmarw expense and repurchase premiums ===acin8M with existmg debt $5,451 $3,167 $2,893 $2,543 $1,189 (1) Does not include $30 nulhon of tax-exempt adjustable rate Solid Waste Disposal Revenue Bonds,1990 Series A, due September 1,2015, classified on the Company's books as a current liability (interest rate for March 1995 to " ^- -- '-x 1995 is 4.50%).
(2) Does not include interest on any new financings that may be required to fund maturities, redemptions or plant additions in any given y v. 'Ihe Company expects some new financings to occur.
(C) RATE-RELATED REGULATORY PROCEEDINGS On December 16,1992, the DPUC approved levelized rate increases of 2.66% ($15.8 million)in 1993 and 2.66% (an additional $17.3 million) in 1994, including allowed conservation and load management program revenue increases However, the Company has realized increased revenues of $12.1 million and $12.5 million in i
1993 and 1994, respectively, as a result of these rate increases Utilities are entitled by Connecticut law to revenues sufficient to allow them to cover their operating and capital costs, to attract needed capital and maintain their financial integrity, while also protecting the public mierest Accordingly, the DPUC's 1992 rate decision authorized a return on equity of 12.4% for ratemaking purposes However, the Company may earn up to 1% above this level before a maixlatory review is required by the DPUC. ,
l The Company is allowed revenue mercases for conservation and load management expenditures through a Conservation Adjustment Mechamsm (CAM) in its retail rates, and accordingly expects a revenue increase in 1995 of $6 million, or 1%, through operauon of the CAM. Except for CAM revenue increases, the Company has stated pubhcly that it does not plan to seek any retail rate increases for the foreseeable future.
Since January 1971, UI has had a fossil fuel adjustment clause (FCA) in virtually all of its retail rates. The DPUC is required by law to convene an administrative proceeding prior to approving FCA charges or credits for each month. The law permits automatic implementation of the charges or credits if the DPUC fails to act within five days of the administrative proceeding, although all such charges and credits are also subject to funher review and appropriate sdjustment by the DPUC at public hearings required to be held at least every three months. The
THE UNITED ILLUMINATING COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -(c a d>
DPUC has made no material changes in UI's FCA charges and credits as the result of any of these proceedings or hearings.
(D) ACCOUNTING FOR PHASE-IN PLAN The Company phasd into rate base its allcwable investment in Scabacok Unit 1, amounting to $640 million, during the period January 1,1990 to January 1,1994. In conjunction with this phase-in plan, the Company has been allowed to record a deferred return on the portica of allowable investment excluded from rate base during the phase-in period. The accumulatM deferred return has been added to rate base each year since January 1,1991 in the same proportion as the phase-in installment for that year has borne to the portion of the $640 million remaining to be phased-in. On January 1,1994, the Company phased into rate base the remaining $74.5 million of allowable imestment, plus the remaining $28.2 million of accumulated deferred return. At December 31,1993, the Company had recorded $62.9 million of accumulated deferred return and no additional defermd return on Seabrook Urdt I was recognized in income during 1994. The Company will amortize the accumulated deferred return over a five-year period commencing January 1,1995.
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i THE UNITED ILLUMINATING COntPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (continued)
(E) INCOME TAXES 1994 9 I?_91 1292 Income tax expense consists of: (000's)
Income tax provisions:
Current Federal $24,190 $13,484 $6,815 8,754 4,843 2,645 State Total current 32,944 18,327 9,460 Deferred Federal 11,123 9,620 16,860 (2,538) (198) 14,233 State 8,585 9,422 31,093 Total deferred ,
Investment tax credits (762) (762) (4,399)
Total income tax expense $40,767 $26,987 $36.1$4 Income tax components charged as follows: }
Operating expenses $44,937 $33,309 $48,712 :
Other income and deductions - net (3,214) (6,322) (12,558)
Cumulative effect of change in accounting for postemployment benefits (956) -
Total income tax expense $40,767 $26.987 $36,154 The following table details the components of the deferred income taxes:
Accelerated depreciation $11,526 $11,318 $15,452 Tax depreciation on unrecoverable plant investment 8,170 7,915 9,378 Conservation & load management 1,897 3,084 3,995 i Property tax adjustment (1,991) (1,991) (1,991)
Deferred fossil fuel costs (37) (381) 490 Seabrook sale / leaseback transaction (2,039) (2,016) 1,629 !
Premiums on BEC bond redemption (1,619) _ (2,378) (3,209)
Cancelled nuclear projects (467) (467) (3,795)
Alternative minimum tax -
(139) (1,344)
Sales adjustment revenues (5,553) (3,248) 2,415 Gains on sale of utility plant - - 1,237 Pension benefits 148 (6,641) (2,489)
I Postretirement benefits 169 (538)
Postemployment benefits (956) ;
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(663) 4,904 9,325 Other - net
$8,585 $9,422 $31,093 Deferred income taxes - net
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THE UNITED ILLUMINATING COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -(e.unemed)
Total income taxes differ from the amounts computed by applying the federal statutory tax rate to income before taxes. The reasons for the differences are as follows 122i 1221 M Pre-Tas .laL. Pre-Taz laL. Pre-Taz .laL. l (000's)
&==g=dal ax t at federal statutory rate $30,646 $23,614 $31,593 lacreases (reductions) resulting from:
Deferred return-Seabrook Unit 1 - - ($7,497) (2,624) ($15,959) (5,426)
ITC taken intoincome (762) 062) 062) 062) (4,399) (4,399)
Allowance for equity funds used during construction 053) (263) (999) (349) (1,003) (341)
Tax exempt interest on municipal bonds - -
(283) (99) (3,664) (1,246)
Book depreciationin excess of non-normalmed tax depreciauon 20,625 7,218 21,711 7,599 20,182 6,862 ,
l State i===e taxes, net of federal income tax benefits 6,216 4,040 4,645 3,019 16,878 11,140 Other items - net (320) (112) (9,746) (3.411) (5,968) (2.029)
Totalincome tax expense $40.262 $26.282 $16.151 Book Income Before Federal Income Taxes $12.561 $62.162 $22.221 Effectiveincome tax rates d6.6% 40.Q'.s 18.2 %
At December 31,1994, the Company had deferred tax liabilities for taxable i ..,~isy differences of $572 l mdhon and deferred tax assets for deductible temporary differences of $143 million, resulting in a net deferred tax ;
liability of $429 million. Sigmficant components of deferred tax liabilities and assets were as follows tax !
liabilities on book / tax plant basis differences, $225 million; tax liabilities on the cumulative amount of income j taxes on ; ,~isy differences previously flowed through to ratepayers, $162 million; tax liabilities on ;
normalization of book / tax @wion tmung differenas, $101 million and tax assets on the disallowance of plant l costs, $69 million. ;
i
'Ihe Tax Reform Act of 1986 provides for a more comprehensive corporate alternative minimum tax (AMT) for years beginning aAer 1986. To the extent that the AMT exceeds the federal income tax computed at statutory rates, the excess must be paid in addition to the regular tax liability. For tax purposes, the excess paid in any year can be carried forward indefinitely and offset against any future year's regular tax liability in exass of that year's tentative AMT. The AMT carryforward at December 31,1994,1993 and 1992 was $11.4 million, $11.4 million
- and $11.3 million, respectively.
(F) SHORT-TERM CREDIT ARRANGEMENTS j The Company has a revolving credit agreement with a group of banks, which currently extends to December 14,1995. The borrowing limit of this facility is $225 million. The facility permits the Company to borrow funds at a fluctuatmg interest rate determined by the prime lending market in New York, and also permits the Company to borrow money for fixed periods of time specified by the Company at fixed interest intes determined by the Eurodollar interbank market in London, or by bidding, at the Company's option. If a material adverse change in the business, operations, affairs, assets or condition, financial or otherwise, or prospects of the Company and its subsidianes, on a consolidated basis, should occur, the banks may decline to lend additional 56 -
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THE UNITED ILLUMINATING COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -(e.nemmed) money to the Company under this revohing credit agreement, although borrowings outstanding at the time of such an occurrence would not then become due and payable. As of December 31,1994, the Company had $67 million in shon-term borrowings oute'=ading under this facility.
The Company's long-term debt instruments do not limit the amount of shon-term debt that the Company may issue. The Company's revolving credit agreement described above requires it to maintain an available earnings / interest charges ratio of not less than 1.5:1.0 for each 12-month period ending on the last day of each calendar quarter. For the 12 month period ended December 31,1994, this coverage ratio was 2.86.
Information with respect to short-term borrowings is as follows:
1994 1993 9 19,,9,1 (000's)
Maximum aggregate principal amount of short-term borrowings outstanding at any month-end $75,000 594,635 $84,099 Average aggregate short-term borrowings outstanding during the year * $57,000 $73,700 $43,055 Weighted average interest rate
- 4.8% 4.1% 4.4%
Pnncipal amounts outstanding at year end $67,000 $0 $84,099 Annualized interest rate on principal amounts outstanding at year-end 6.7% N/A 5.1%
- Average short-term borrowings represent the sum of daily borrowings outstanding, weighted for the number of days outstanding and disided by the number of days in the period. The weighted average interest rate is determined by dividing interest expense by the amount of average borrowings. Commitment fees of approximately
$250,400, $259,600 and $208,400 paid during 1994,1993 and 1992, respectively, are excluded from the calculation of the weighted average interest rate.
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THE UNITED ILLUMINATING COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (continued)
(G) SUPPLEMENTARY INFORMATION -
1994 129J 1222 (000's)
Operating Revenues
$618,868 $603,559 $566,955 Retail- Base rates-
- - 21,031 Sales provision adjustment Wholesale - capacity 7,162 6,575 20,315 ,
- energy 27,765 39,356 55,169 l 2,953 3,533 3,855 !
Other
$656,748 5653,023 $667,325 Total Operating Revenues Other Incesne and (Deductions) - net
$2,520 $3,568 $6,681 Interest and dividend income Seabrook funding adjustments - - 7,506 Eamings of subsidiaries and Connecticut Yankee (2,843) (3,207) (381)
Amortization of loss on investment in tax-exempt bonds - - (1,752) 63 710 5,921 Gain on sale of propeny Engineering study costs (1,200) - -
(447) (1,000) 570 Miscellaneous other income and (deductions) - net
($1,907) $71 $18,545 Total Other Income and (Deductions) - net Other Taxes Charged to:
Operating:
State gross earnings $27,403 $27,955 $27,362 Local real estate and personal property 26,318 24,449 26,339 Payroll taxes 6,137 5.525 5,527 Other 3 3 3 59,861 57,932 59,231 41 335 837 Nonoperating and other accounts
$59,902 $58.267 $60,068 Total Other Taxes OtherInterest Charmes Notes Payable $2,713 $3,049 $2,120 Amortization of debt expense and repurchase premiums 6,570 7,818 8,898 1,018 1,393 1,864 Other Total Other Interest Charges $10,301 $12.260 $12,882 P
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f THE UNITED ILLUMINATING COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -(c neme.d)
I (H) PENSION AND OTHER BENEFITS The Company's qualified pension plan, which is based on the highest three years of pay, covers substantially all of its employees, and its entire cost is borne by the Company. The Company also has a non-qualified supplemental plan for certain executives and a non qualified retiree only plan for censin early retirement benefits.
'Ihe net pension costs for these plans for 1994,1993 and 1992 were $4,028,000, $14,966,000 and $5,749,000, respectively.
The Company's funding policy for the qualified plan is to make annual contributions that satisfy the minimum fundmg requirements of ERISA but which do not exceed the maximum deductible limits of the Internal Revenue ;
Code. These amounts are determined each year as a result of an actuarial valuation of the Plan. In accordance i with this policy, the Company contributed $3.3 million in 1994 for 1993 funding requirements. In addition, the i I
Fr=npany contributed $3.9 million in 1994 for 1994 funding requirements. Previously, due to the application of the full funding limitation under ERISA, the Company had not been required to make a mntribution since 1985. ,
The supplemental plan is unfunded l l
The qualified plan's irrevocable trust fund consists principally of equity and fixed-income securities and real ;
estate investments in approximately the following percentages:
l Percentage of 1 Asset Catezory Total Fund Equity Securities 64.1 ,
Fixed income Securities 30.2 :
Real Estate 5.7 ,
l 1994 1993 (000's)
The components of net pension costs were as follows:
Service cost of benefits earned during the period $ 4,822 $ 3,977 Interest cost on projected benefit obligation 15,023 13,165 Actual return on plan assets (1,218) (23,344) ,
Net amortization and deferral (14.095) 10.130 -
Net pensen cost $.L522* 5.2R1" l
- In addition, an adjustment of $504,000 was recorded due to an overaccrual of the cost of special termination benefits in 1993.
"In addition, a cost of $11,038,000 was recognized under SFAS No. 88 as a result of special termination benefits prmided under the Pension Plan.
Assumptions used to determine pension costs were:
Discount rate 7.50 % 8.25 %
Average wageincrease 5.50 % 5.50*/.
Return on plan assets 9.00*/. 8.50 %
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THE UNITED ILLUMINATING COMPANY NOTES TO CONSOLIDA'IED FINANCIAL STATEMENTS -(eemeimmes)
December 31.1994 December 31.1993 Qasalified Non-Qualified Qualified Non-Qualified BAE Datt BAE ' BRM (000's)
The funded status and amounts r-i-i in balance sheets are as follows Actuanal present value of benent obligations-Vested beneSt obligation $121.282 $2.148 $110.32 $2.Q22 Accumulated benefit obligation - $110.23 $1$18 ' $132.Q81 $3.Q22 Reconciliation of accrued pension liability:
T..,m.i.4 benefit obligation $183,951 $4,510 $198,236 $4,262 Iess fairvalue of plan assets 165.788 - 167.732 -
ri , i 4 beneSt greater (less) than plan assets 18,163 4,510 30,504- 4,262 U -:9;- U piior service cost (5,619) (397) (6,516) (157)
Unrecosmzed net gain (loss) from past experience 1,849 - (6,966) (327)
Unrecognized net asset (obligation) at date ofinitial application _1L7.70 (99) 12.878 _1111)
Accrued pension liability $.26.161 $1.011 122.200 11.612 A saumptions used in estimating benefit obligations:
Discount ra.e 8.50 % 8.50 % 7.50 % 7.50 %
Average wage increase 5.50 % 5.50 % 5.50 % 5.50 %
In addition to providing pension benefits, the Company also provides other i usil.a.t benefits (OPEB), 3 consisting principally of health care and life insurance benefits, for retired employees and their ig=' =ts.
Employees with 25 years of service are eligible for full benefits, while employees with less than 25 years of semce )
but greater than 15 years of service are entitled to partial benefits. Years of servia prior to age 35 are not included in determining the number ofyears of semcc.
Prior to January 1,1993, the Company r~*-=i=t the cost of providing OPEB on a pay-as-you-go basis by '
expensing the annual insurance premiums. Effective January 1,1993, the Company adopted Statement of Financial Accounting Standards (SFAS) No.106, Employers' Accounting for Postretirement BeneSts Other Than Pensions", which requires, among other things, that OPEB costs be recognized over the employment period that encompasses eligibility to receive such benefits. In its December 16,1992 decision on the Company's application ,
for retail rate relief, the DPUC r~=-ai=I the Company's obligation to adopt SFAS No.106, effective January 1, 1993, and approved the Company's request for revenues to recover OPEB expenses on a SFAS No.106 basis. A ,
portion of these expenses represents the transition obligation, which will accrue over a 20-year period, representing i the future liability for medical and life insurance benefits based on past service for retirees and active employees. !
For funding purposes, the Company established a Voluntary Employees' Benefit Annanasion Trust (VEBA) to l fund OPEB for union employees who retire on or aAer January 1,1994. Approximately 52% of the Company's
..ylvp are represented by Local 470-1, Utility Workers Union of America, AFL-CIO, for collective bargaining purposes The Company established a 401(h) account in connection with the qualified pension plan to fund OPEB for non-umon employees who retire on or aner January 1,1994. The funding policy assumes contributions to these trust funds to be the total OPEB expense calculated under SFAS No.106, excluding the amount that resulted from the reorganization minus psy as-you-go benefit psyments for pre-January 1,1994 retirees, allocated in a manner j l
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s-THE UNITED ILLUMINATING COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -(come==d) that minimizes current income tax liability, without exceeding maximum tax deductible limits. In accordance with this policy, the Company contributed approximately $3 million and $1.8 million to the union VEBA on December 30,1993 and December 29,1994, respectively. During 1994, the Company contributed approximately
$2.2 million to the 401(h) account. The Company currently plans to fund the portion of the OPEB expense that is related to the reorganization during the years 1994-19%.
The components of the net cost of OPEB were as follows:
1994 1993 (000's)
Service cost $1,372 $1,182 Interest cost 2,534 1,959 Actual return on plan assets 72 -
Amortizations and deferrals - net 1 34s Illi Net Cos* of Postretirement Benefit $$.324 XL.Un
, Assumptions used to determine OPEB costs were:
Discount rate 7.5% 8.25 %
Health Care Cost Trend Rate
- 7.7%
- Assumed rates gradually decline to 6.2% by the year 2020
" Assumed rate for Pre-age 65 claims - 8.3% and for Post-age 65 claims - 9.0%
A one percentage point increase in the assumed health care cost trend rate would have increased the senice cost !
and interest cost components of the 1994 net cost of periodic postretirement benefit by approximately $599,000 and l would increase the accumulated postretirement benefit obligation for health care benefits by approximately
$3,525,000. i The following table reconciles the funded status of the plan with the amount recognized in the Consolidated Balance Sheet as of December 31,1994 and 1993:
1994 99 1991 (000's)
Accumulated Postretirement Benefit Obligation:
Retirees $ 13,028 $12,292 Fully eligible active plan participants 7,078 1,950 Other active plan participants 12 267 16.088 Total Accumulated Postretirement Benefit Obligation 32,373 30,330 Plan assets at fair value 6.781 19_8B4 j Accumulated Postretirement Benefit Obligation in I Excess of Plan Assets 25,592 27,346 Unrecognized net loss (2,958) (2,990) l Unamortized transition obligation (21.874) (23.089) l Accrued Postretirement Benefit Obligation 1 250 $ 1.267 O
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THE UNITED ILLUMINATING COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-( meam s)
The weighted average daarv=at rates used to measure the accumulated pv.ue. .t benefit obligation at December 31,1994 and 1993 were 8.5% and 7.5%, respectively.
During 1993, in conjunction with an in-depth orpanational review, the Company offered a voluntary early retirement program to non-unnon employees who were eligible to receive pension benefits. This offer was accepted by 103 .,A 3m. The 1993 OPEB cost for this program was $1.3 million. 'Ihese costs are r-i=d as a rampaaaa' of the reorfannation charge shown on the Company's Consohdated Sensament ofIncame Effective January 1,1994, the Company adopted Statement of Financial Arrv=ating Standards (SFAS)
No.112, " Employers' A- *g for Postemployment Benefits." This statement establishes accounting amandards
,Arjers who provide benefits, such as unemployment compenantion, severance benefits and disability j for benefits to former or inactive employees after employment but before retirement and requires recognition of th5 abhgataan for these benefits. The effect of adopting this statement is reported as a charge against income in ths; first quarter of 1994 due to a change in accounting principic. The charge decreased earnings for coramon stock for 1994 by $1.3 mdhon, after tax, or $.09 per share.
The Company has an Employee Stock Ownership Plan (ESOP) for substantially all its employees Under the plan, cligible . ,A, received Company common stock and the plan provided certain tax benefits to the Company. Neither the Company nor the employee-participants made any contributions to the ESOP since 1987.
The Company has an Employee Savings Plan (401(k) Plan) in which substantially all employees are eligible to participate. The 401(k) Plan en=hles ,A m 3 to defer receipt of up to 15% of their compensation and to invest such funds in a number ofinveme= eat ahernatives. "Ihe Company makes matching contributaons to the 401(k)
Plan in the form of Company common stock for each participant. The matching contribution currently equals fifty cents for each dollar of the partacipant's compensauon deferred, but is not more than three percent of the participant's annual salary. The Company's matching contributions to the 401(k) Plan during 1994,1993 and 1992 were $1.6 million, $1.3 million and $.9 million, respectively.
(1) JOINTLY OWNED PLANT At December 31,1994, the Company had the following interests in jointly owned plants:
Ownership /
1...aand Plant In Accumsulated Share linjsg Deoreciation (Millions)
Seabrook Unit i 17.5 % $654 S81 Millstone Unit 3 3.685 133 50 New Haven Harbor Station 93.7 132 63 The Comphny's share of the operating costs of jointly owned plants is included in the appropriate expense captions in the Consolidated Statement ofIncome.
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THE UNITED ILLUMINATING COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -(e.nemese (J) UNAMORTIZED CANCELLED NUCLEAR PROJECT From December 1984 through December 1992, the Company had been recowring its investment in Seabrook Unit 2, a nuclear generating unit under construction that was cancelled in 1984, over a regulatory approved ten-year pened without a return on its unamortized investment. In the Company's 1992 rate decision, the DPUC adopted a proposal by the Company to write offits remaining investment in Seabrook Unit 2, beginning January 1, 1993, over a 24-year period, w..w. ding with the flowback of attain Connecticut Corporation Business Tax (CCBT) credits. Such decision will allow the Company to retain the Seabrook Unit 2/CCBT amounts for ratemaking purposes, with the accumulated CCBT credits not deducted from rate base during the 24-year period of amortazation in recognition of a longer period of time for amortization of the Seabrook Unit 2 balance.
(K) FUEL FINANCING OBLIGATIONS AND OTHER LEASE OBLIGATIONS i The Company has a Fossil Fuel Supply Agreement with a financial institution prmiding for financing up to
$37.5 million in fossil fuel purchases. Under this agreement, the financing entity acquires and stores natural gas, coal and fuel oil for sale to the Company, and the Company purchases these fossil fuels from the financing entity at j a price for each type of fuel that reimburses the financing entity for the direct costs it has incurred in purchasing i and storing the fuel, plus a charge for maintaining an inventory of the fuel determined by reference to the I fluctuating interest rate on thirty day, dealer-placed commercial paper in New York. The Company is obligated to !
insure the fuel inventories and to indemnify the financing entity against all liabilities, taxes and other expenses incurred as a result of its ownership, storage and sale of fossil fuel to the Company. This agreement currently J extends to March 1996. At December 31,1994, approximately $10.7 million of fossil fuel purchases were being financed under this agreement The Company has leases (some of which are capital leases), including arrangements for data processing and office equipment, vehicles, office space and oil tanks. The gross amount of assets recorded under capital leases and the related obligations of those leases as of Dcamber 31,1994 are recorded on the balance sheet. ,
i Future minimum lease payments under capital leases, excluding the Seabrook sale /lcaseback transaction, which is being treated as a long-term financing, are estimated to be as follows:
(000's) 1995 $ 2,666 1996 1,715 ,
1997 1,715 1998 1,715 1999 1,6 %
After 1999 22.783 Total minimum capital lease payinents 32,290 Less: Amount representing interest 13.322 Present value of minimum capital lease payments $1LM8 In January 1994, the Company renegotiated a lease agreement for a service facility. Since the effect of renegotiating the lease, which continues to be treated as a capital lease, was a noncash financing activity during 1994, it is not reflected in tly Consolidated Statement of Cash Flows.
Capitalization ofleases has no impact on income, since the sum of the amortization of a leased asset and the interest on the lease obligation equals the rental expense allowed for ratemaking purposes t
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THE UNITED ILLUMINATING COMPANY j NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - <e n== 8) i l
Rental payments charged to operating expenses in 1994,1993 and 1992 amounted to $12.1 million, $14.1 l' nulhon and $14.8 million, respectively.
Operating leases, whica are charged to operatmg expense, consist principally of a large number of small, ;
relatively short-term, renewable agraements for a wide vanety of equipment. In addition, the Cotapany has an l operating lease for its corporate headquarters Future minimum lease payments under this lease are estimated to be l as follows (000's) 1995 $ 4,729 1996 5,317.
1997 5,826 1998 6,125 1999 6,426 2000-2012 121.857 .
Total SLID.210 )
(L) COMMITMENTS AND CONTINGENCIES Capital Expenditure Pawgram l The Company has entered into certain commitments in connection with its continuing capital expenditure program This program is presently estimated at approximately $357.5 million, excluding AFUDC, for 1995 through 1999. j l
Seabrook On February 28,1991 EUA Power Corporation (EUA Power), the holder of a 12.1% ownership share in Seabrook, commenced a proceeding under Chapter 11 of the Bankruptcy Code. EUA Power, a wholly-owned j subsuhary of Eastern Utilities Annamates (EUA), was organned solely for the purpose of acquiring an - w.l.ip share in Seabrook and selling in the wholesale market its share of the electric power produced by Seabrook. EUA Power commenced this Ir.:s.gey pra-iing because the cash generated by its sales of power at current market prices was insufficient to pay its obligations on its outenanding debt. Subsequently, EUA Power's name was changed to Great Bay Power Corporation (Great Bay). During 1994, the bankruptcy court conRrmed a reorganization plan for Great Bay, which was financed by the injection of $35 million of new ownership equity into this corporation. On November 23,1994, when this Anancing was completed, the Company was repaid $5.7 million, representing all advance Scabrook operating expense payments it had made, pending the reorganization plan's becoming effective.
Neelearlasurance Contingeseles The Price-Anderson Act, currently extended through August 1, 2002, limits public liability resulting from a single incident at a nuclear power plant. The first $200 million of liability coverage is provided by purcl sii g the maximum amount of wacially available insurance Additional liability coverage will be provided by an assessment of up to $75.5 million per incident, levied on each of the nuclear units licensed to operate in the United States, subject to a maximum ===e===ent of $10 million per incident per nuclear unit in any year. In addition, if the sum of all public liability claims and legal costs resulting from any nuclear incident exceeds the maximum 64 -
THE UNITED ILLUMINATING COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -(c meammes) amount of financial protection, each reactor operator can be mese=ced an additional 5% of $75.5 million, or $3.775 million. The maximum menemement is adjusted at least every five Stars to reflect the impact ofinflation. Based on its interests in nuclear generating units, the Company estimates its maximum liability would be $23.2 million per incident. However, assessment would be limited to $3.1 million per incident, per year. With respect to each of the j operating nuclear generating units in which the Company has an interest, the Company will be obligated to pay its
! ownership and/or leasehold share of any statutory assessment resulting from a nuclear incident at any nuclear generating unit.
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- The NRC requires nuclear generating units to obtain property insurance cmtrage in a minimum amount of i $1.06 billion and to establish a system of prioritized use of the insurance proceeds in the event of a nuclear incident. The system requires that the first $1.06 billion of insurance proceeds be used to stabilize the nuclear reactor to prevent any sigmficant risk to public health and safety and then for decontamination and cleanup
=*= h Only following completion of these tasks would the. balance, if any, of the segregated insurance proceeds become available to the unit's owners. For each of the nuclear generating units in which the Company has an interest, the Company is required to pay its ownership and/or leaschold share of the cost of purchasing such tasurance.
Other Comanitments and Contingencies Hydr %
The Company is a participant in the Hydro-Quebec transmission intertie facility linking New England and Quebec, Canada. Phase 11 of this facility, in which UI has a 5.45% participating share, has increased the capacity value of the intertic from 690 megawatts to a maximum of 2000 megawatts. A ten-year Firm Energy Contract, which provides for the sale of 7 million megawatt-hours per year by Hydro-Quebec to the New England participants in the Phase Il facility, became effective on July 1,1991. The Company is obligated to furnish a guarantee for its participating share of the debt financtng for the Phase 11 facility. Currently, the Company's guarantee liability for this debt amounts to approximately $9.2 million.
Reorganization Charge During 1993, the Company undertook an in depth organizational review with the primary objective of improving customer service. As a result of this review, the Company eliminated approximately 75 positions in a corporate reorganization.
In conjunction with this review and reorgamzation, the Company offered a voluntary early retirement program to non-union employees who were eligible to receive pension benefits. The early retirement offer was accepted by 103 employees and the Company incurred a one-time charge to 1993 carnings of approximately $13.6 million
($7.8 million, after-tax). The employees who accepted the offer retired during 1994.
All non-retiring employees affected by the corporate reorganization were placed in regular positions or assigned to special prorets During 1994, the Company realized savings of approximately $2.8 million ($1.6 million, after-tax) as a result of the corporate reorganization and expects annual savings, beginning in 1995, to be approximately $7.9 million
($4.6 million, after-tax).
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THE UNITED ILLUMINATING COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -(w)
Site Remediation Cests The Company has estunated that the cost of environmental remedaation of its decomnussioned Steel Point i Station property in Bridgeport will be approximately $11.3 million, and tha the value of the property following I remadia at will not exceed $6 nulhon in its December 16 ,1992 decision on UI's apphcation for retail rate increases, the DPUC pnmded for additional revenues to be recovered from customers in the amount of $4.3 niillion of the difference during the penod 1993-1996, subject to true-up in the Company's next retail rate proceeding based on actual renwntinhon costs and actual gain on the Company's disposition of the property Property Tazes .
On November 2,1993, the Company received " updated" personal propeny tax bills from the City of New Haven (the City) for the tax year 1991-1992, aggregating $6.6 million, based on an audit by the City's tax assessor On May 7,1994, the Company received a " Certificate of Correction....to correct a clerical omission or mistake" from the City's tax assessor relative to the ===a= art value of the Company's personal property for the tax year 1994-1995, which certificate purports to increase said assessed value by approximately 53% above the tax assessor's valustaon at February 28,1994. 'Ihe Company is contesting each of these actions of the City's tax assessor vigorously, and has commenced actions in the Supenor Court to enjoin the City from any effort to collect the 'hpdated" personal property tax bills for the tax year 1991-1992 and challenging both the May 7,1994
' Certificate of Correction"and the tax assessor's valuation at February 28,1994. In C-~ --M of 1994, the City's tax assessor conducted hearings regarding the ==aa=*ad value of the Company's personal property for the tax years 1992-1993 and 1993-1994; and the Company anticipates that the City will take some action to revalue the Company's personal property for those tax years. On March 1,1995, the Company received from the City notices of assessment changes, increasing the assessed valustaon of the Company's personal property for the tax year 1995-1996 by 48% over the valuation declared by the Company .The Company expects to take the legal actions l necessary to challenge these increases It is the present opinion of the Company that the ultimate outcome of this j dispute will not have a sigmficant impact on the financial position of the Company.
Environssental Concerns 1
In complying with existing environmental statutes and regulations and further developments in these and other areas of environmental concern, including legislatson and studies in the fields of water and air quality (particularly " air toxics", " ozone non-attainment" and " global warming"), hazardous waste "~8HT and disposal, toxic anharances, and electric and magnetic fields, the Company may incur substantial capital expenditures for equipment modifications and additions, monitoring equipment and recording devices, and it may incur additional operating expenses Litigation expenditures may also increase as a result of scientific investigations, and speculation and debate, concerning the possibility of harmful health effects of electric and magnetic fields. The Company believes that any additional costs incurred for these purposes will be recoverable through the ratemaking process The total amount of these expenditures is not now determinable.
(M) NUCLEAR FUEL DISPOSAL AND NUCLEAR PLANT DECOMMISSIONING Costs associated with nuclear plant operations include amounts for dispar=1 of nuclear wastes, including spent fuel, and for the ultimate decommissioning of the plants. Under the Nuclear Waste Policy Act of 1982, the federal Department of Energy (DOE) is required to design, license, construct and operate a permanent repository for high level radioactive wastes and spent nuclear fuel. The Act requires the DOE to provide, beginning in 1998, for the disposal of spent nuclear fuel and high level radioactive waste from commercial nuclear plants through contracts with the owners and generators of such waste; and the DOE has established disposal fees that are being paid to Ilv.
federal government by electric utilities owning or operating nuclear generating units. In return for payment of the 66 -
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THE UNITED ILLUMINATING COMPANY I
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -(e.nemmed) pitscribed fees, the federal government is to take title to and dispose of the utilities' high level wastes and spent l nuclear fuel beginning no later than 1998. However, the DOE has ===ma=1 that its first high level waste repository will not be in operation earlier than 2010, notwithstanding the DOE's statutory and contractual responsibility to begin disposal of high-level radioactive waste and spent fuel beginning not later than January 31, 1998.
1 I
Until the federal government begins receiving such materials in accordance with the Nuclear Waste Policy Act, operating nuclear generating units will need to retain high 1: vel wastes and spent fuel on-site or make other prmisions for their storage. Storage facilities for Millstone Unit 3 are expected to be adequate for the projected life of the unit. Storage facilities for the Connecticut Yankee unit are expected to be adequate through the mid-1990s.
Storage facilities for Seabrook Unit 1 are expected to be adequate until at least 2010. Fuel consolidation and m-Mon technologies are being dm!+d and are expected to provide adequate storage capability for the projected lives of the latter two units. In addition, other licensed technologies, such as dry storage casks, can accommodate spent fuel storage requirements.
Disposal costs for low-level radioactive wastes (LLW) that result from normal operation of nuclear generating units have increased significantly in recent years and are expected to continue to rise. The cost increases are functions ofincreased =+==ina and transportation costs and higher fees and surcharges charged by the disposal facilities. As of June 30,1994, the disposal facility in Barnwell, Sooth Carolina was closed to all LLW disposal for New England nuclear units, forcing all of these units into on-site storage of LLW produced.
Pursuant to the Low-Level Radsoactive Waste Policy Act of 1980, each state is responsible for providing disposal facilities for LLW generated within the state and is authorized to join with other states into regional
-a-9 to jointly fulfill their responsibilities. The Connecticut Hazardous Waste Management Senice (the Senice), a state quasi-public corporation, was charged with coordinating the establishment of a facility for disposal of LLW originating in Connecticut. In June 1991, the Senice aaaa===i that it had selected three potential sites in north-central Connecticut for further study. The Senice's announcement provoked intense controversy in the affected municipalities and resulted in legislative action to stop the selection process On February 1,1993, the Senice presented to the legislature a new site selection plan under which communities are urged to volunteer a site for a facility in return for financial and other inantives. The volunteer process is being continued through 19%.
The Service's activities in this regard are funded by assessments on Connecticut's LLW generators. Due to a change in the volunteer process, there was no assessment for the 1994-1995 fiscal year and the state projects no assessment for the 1995-1996 and 1996-1997 fiscal years. The service currently projects that a disposal site will be designated by 2002, although there are admitted inherent uncertainties in this projection.
Additional LLW storage capacity has been or can be constructed or acquired at the Millstone and Connecticut Yankee sites to provide for temporary storage of LLW should that become necessary. Connecticut LLW can be managed by volume reduction, storage or shipment at least through 2000. The Company cannot predict whether and when a disposal site will be designated in Connecticut.
The State of New Hampshire has not met deadlines for compliance with the Low-Level Radioactive Waste Policy Act, and Seabrook Unit I has been denied access to existing disposal facilities. Therefore, LLW generated by Seabrook Unit 1 is being stored on-site. The Scabrook storage facility currently has capacity to store at least five years' accumuhtion of waste generated by Seabrook, and the plant operator plans to expand its storage capacity as i i
necessary.
l NRC limnsing requirements and restrictions are also applicable to the decommissioning of nuclear generating units at the end of their senice lives, and the NRC has adopted comprehensive regulations concerning decommissioning planning, timing, funding and emironmental resiews. Ul and the other owners of the nuclear
THE UNITED ILLUMINATING COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (e.nemmes) generating units in which UI has interests estimate decommissioning easts for the units and attempt to recover sufficient amounts through their allowed e!cctric rates to cover expected decommissioning costs. Changes in NRC requirements or technology can increase estimated decommissioning costs, and UI's customers in future years may expenence higher electric rates to cifset the effects of any insufficient rate recovery in prior years. i New Hampshire has enacted a law requiring the creation of a government-managed fund to finance the f+ - '- '=I=5 of nuclear generating units in that state. The New Hampshire Nuclear Decommissioning Financing Co,nmittee (NDFC) has estabhshed $376 million (in 1*95 dollars) as the decomaussiomag cost estamate for Seabrook Unit 1, of which the Company's share would be about $66 million. This ashmane premsses the prompt removal and dismanthng of the Unit at the end of its esti nated 40-year energy producing life. Monthly damm=issiomng payments are being made to the state-managed dacamminaianing trust fund. UI's share of the decomnussioning payments made during 1994 was $1.3 million. UI's share of the fund at Danamher 31,1994 was approwsmanely $5.2 million.
Connecticut has enacted a law requiring the operators of nuclear generating units to file penodically with the DPUC their plans for financing the decommissioning of the units in that state. Current -f---- ' ==i=!=5 cost enhmates for Mdistone Unit 3 and the Connecticut Yankee Unit are $448 million (in 1995 dollars) and $357 mdhon (in 1995 dollars), respectively, of which the Company's share would be about $17 million and $34 million, i%Gdi. These estimates premise the prompt removal and dismantling of each unit at the end ofits estimated 36-year energy producing life. Monthly decommissioning payments, based on these cost estimates, are being made to f =-- '=='- ' ; trust funds manered by Northeast Utilities. UI's share of the Millstone Unit 3 decommissionang payments made dunng 1994 was $388,000. UI's share of the fund at Daremher 31,1994 was approximately $2.4 million. For the Company's 9.5% equity ownership in Connecticut Yankee, decommissioning costs of $1.3 nulhon were funded by UI during 1994, and UI's share of the fund at December 31,1994 was $14.1 million.
(N) PROPERTY TAX SE"ITLEMENT In December 1994, the Company and the City of Bridgeport settled a dispute regarding past taxes payable by the Company on its personal property in that city and agreed upon a method of valuation of personal pmperty for tax purposes for future penods . As a result of the settlement agreement, the Company recogmzed a non-recurring charge to 1994 carnings of approximately $2.5 million ($1.5 million, after-tax).
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THE UNITED ILLUMINATING COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -(c.nemmes)
(O) FAIR VALUE OF FINANCIAL INSTRUMENTS (1)
The estimated fair values of the Company's financial instruments are as follows:
1994 L99,3 i Carrying Fair Carrying Fair Amount Y.shg Amount y,alg ,
i (000's) (000's)
Cash and temporary cash investments $ 11,432 $ 11,432 $ 48,171 $ 48,171 l Long-term debt (2)(3) $651,473 $633,551 $768,601 $R10,329 i
(1) Equity investments were not valued because they were not considered to be material. l (2) Excludes the $250,000,000 obligation under the Seabrook Unit I sale /leadw+ agreement.
(3) The fair market value of the Company's long-term debt is estimated by brokers based on market conditions at December 31,1994 and 1993, respectively.
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THE UNITED ILLUMINATING COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -(m) !
(t) QUARTERLY FINANCIAL DATA (UNAUDITED)
Selected quarterly financial data for 1994 and 1993 are set forth below:
Earnings (1 Ass) l Operating Operating NetEnemana Per Share of ,
Omarter hevenues Income (4) (Less)(2W3W4) Common Stock (1W2W3W4) l (000's) (000's) (000's) 1994 First $167,579 $32,626 $11,938 -$ .77 i Second 153,433 26,632 6,414 .40 Third 184,592 44,762 25,787. 1.78 Fourth 151,144 23,372 2,656 .14 1993 First $161,936 $31,164 $12,586 S.82 Second 151,012 29,335 10,374 .66 Third 189,432 41,358 22,756 1.54 Fourth 150,643 12,957 (5,235) (.45)
L (1) Based on weighted average annihar of shares cuestmarting each quarter.
(2) Earnings per share for the fourth quarter of 1993 include an aner-tax charge of $7.8 million or $.56 per share ;
associated with the reorfanivation of the Cornpany.
(3) Net income and earnings per share for the first quarter of 1994 include an aner-tax charge of $1.3 million or
$.09 per share associated with the cumulative effect of the change in the method of accounting for i postemployment benefits. See Note (H), Pension and Other Benefits". !
(4) Operating income, net income and earnings per share for the fourth quarter of 1994 include an aner-tax I charge of $1.5 million, or $.10 per share, menacintari with a property tax settlement, and an aner-tax credit of
$1.6 million, or $.11 per share, to reverse prior penod overestimates of distribution losses.
- Coopers & Lybrand LLP.
&Lyarand a professonal services firm l l
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REPORT OF INDEPENDENT ACCOUNTANTS {;
To the Shareowners and Directors of ,
The United Illuminating Company: !
We have audited the accompanying consolidated . balance . sheets of The United Illuminating l Company as of December 31,1994,1993 and 1992, and related consolidated statements ofincome, retained earnings and cash flows for the years then ended and the consolidated financial statement j schedule (page S-1). These financial statements and the financial statement schedule are the l responsibility of the Company's management. Our responsibility is to express an opinion on these l financial statements and the financial statement schedule based on our audits. j i
l We conducted our audits in accordance with generally accepted auditing standards. Those standards !
' I require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing ,
the accounting principles used and significant estimates made by management, as well as evaluating l the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. l l
In our opinion, the financial statements referred to above present fairly, in all material respects, the l consolidated financial position of The United Illuminating Company as of December 31,1994,1993 l and 1992, and the consolidated results ofits operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. In addition, in our opinion, the financial statement schedule referred to above, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information required to be included therein.
& H.A Hartford, Connecticut l January 23,1995 I i
Coopers & Lybrand L L P, a reg!stered Imted hatutsty partnership. rs a member firm of Coopers & Lybrand Onternational)
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C Item 9. Changes in and Disagreements with A-=*==ts on Accounting and Financial Disclosures Not Apphcable
. PARTIII Item 10. Directors and Executive Of5cers of the Company.
The informan- appeanns under the regw-= " NOMINEES FOR ELEC110N AS DIRECTORS" AND
" COMPLIANCE WITH SECTION 16(a) OF THE SECURITIES EXCHANGE ACT OF 1934" in the Company's de6aitiw Proxy *~-'aaa'. dated March 29,1995, for the Annual Meeting of the Shareholders to be held on May 17,1995, which Proxy Sentamant will be Aled with the Securities and Exchange Comminaion on or about March 29,1995, is incorporated by reference in partial amwer to this item. See also " EXECUTIVE OFFICERS OF THE COMPANY", following Part I, Item 4 hercan item 11. Exe:utive Compensation.
The information appeanng under the captaons "EXECU11VE COMPENSATION," " STOCK OFTION PLAN," " STOCK OF110N EXERCISES IN 1994 ' AND YEAR-END OPTION VALUES," ' DIVIDEND l i
EQUIVALENT PROGRAM," 1tETIREMENT PLANS," " COMPENSATION COMMr! TEE INTERLOCKS AND INSIDER PARTICIPATION" AND "DIRECIOR COMPENSATION" in the Company's dcGnitive Proxy l Statement, dated March 29,1995, for the Annual Meetag of the Shareholders to be held on May 17,1995, which Proxy Statement will be Aled with the Securities and Exchange Commiannon ca or about March 29,1995, is moorporated by reference in answer to this item.
Item 12. Security Ownership of Certain Benencial Owners and Management.
I The informaison appeanng under the captions " PRINCIPAL SHAREHOLDERS" and " MOCK OWNERSHIP OF DIRECTORS AND OFFICERS" in the Company's dennitive Proxy Statement, dated March 29,1995 for the '
Annual Meeting of the Shareholders to be held on May 17,1995, which Proxy Statement will be Aled with the Securitics and Exchange Commission on or about March 29,1995, is incorporated by reference in answr to this item.
Item 13. Certam Relationships and Related Transactaons.
The information appearing under the caption " NOMINEES FOR ELECTION AS DIRECTORS" in the i Company's definitive Proxy Statement, dated March 29,1995, for the Annual Meeting of the Shareholders to be held on May 17,1995, which Pmxy Statement will be Sled with the Securities and Exchange Commission on or ,
about March 29,1995, is incorporated by reference in answer to this item. !
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PARTIV I
Item 14. Exhibits, Financial mataraant Schedules, and Reports on Form 8-K. l (a) The folkmng documents are filed as a part of this report:
Financial Statements (see item 8): j Consohdated erstament ofincome for the years endad December 31,1994,1993 and 1992 ;
1 Consohdated statement of cash flows for the years ended December 31,1994,1993 and 1992 i Consolidated balance sheet, December 31,1994,1993 and 1992
('anaatuinted arate= eat of retained earnings for the years ended December 31,1994,1993 and 1992 l I
Senaarnant of accounting pohcies l Notes to consolidated financial statements Report ofindependent accountants Finannal Statement Schedule (see S-1) 04==inie II - VMuntion and qualifying ammats for the years ended December 31,1994,1993 and 1992.
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C Exhibits:
Pursuant to Rule 12b-32 under the Securities Ed :e Act of 1934, certain of the following listed exhibits, which are annexed as exhibits to previous statements and reports filed by the Company, are hereby incorporated by reference as exhibits to this report Such staternents and reports are identified by reference numbers as follows:.
(1) Filed with Registration Statement No. 2 60849, effective July 24,1978.
(2) Filed with Quarterly Report (Form 10@ for Ascal quarter ended E- r '- r 30,1991.
(3) Filed with Quarterly Report (Form 10-Q) for fiscal quarter ended March 31,1991.
(4) Filed with RG.iicii Statement No. 33-40169, effective August 12,1991.
(5) Filed with Registration Statement No. 33-35465, effective August 1,1990.
(6) Filed with Registration Statement No. 2-57275, effective October 19,1976.
(7) Filed with Annual Report (Form 10-K) for fiscal year ended December 31,1991.
(8) Filed with Annual Report (Form 10-K) for fiscal year ended December 31,1992.
(9) Filed with Annual Report (Form 10-K) for fiscal year ended December 31,1990. J i
(10) Filed with Registrataon Statement No. 2 66518, effective February 25,1980.
(11) Filed with Registrataan Seneement No. 2 49669, effective Decemher 11,1973.
I (12) Filed with Annual Report (Form 10-K) for fiscal year ended December 31,1993.
(13) Filed with Registration Statement No. 2-54876, effective November 19,1975. I i
(14) Filed with Registration Statement No. 2-52657, effective February 6,1975.
(15) Filed with Quarterly Report (Form 10-Q) for fiscal quarter ended September 30,1990.
(16) Filed with Quarterly Report (Form 10-Q) for fiscal quarter ended March 31,1994.
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l The exhibit number in the statement or report referenced is set forth in the parenthesis following the l description of the exhibit. Those of the following exhibits not so identified are filed herewith.
Exhibit Table Exhibit Reference Item No. A No. Desenption
! (3) 3.1 Copy of Renatart Certificate of lacorporation of The United Illuminating I Company, dated January 23,1995.
1 (3) 3.2a (1) Copy of Bylaws of fhe United Illummating Company. (Exhibit 2.3) l (3) 3.2b (2) Copy of Article II, Section 2, of Bylaws of 1hc United Illununating l Company, as amended March 26, 1990, menearling Exhibit 3.2a. l (Exhibit 3.23b) .
(3) 3.2c (3) Copy of Article V, Section 1, of Bylaws of The United Illuminating Company, as amended April 22, 1991, amending Exhibit 3.2a.
(Exhibit 3.23c) . l l (4) 4.1 (4) Copy ofIndenture, dated as of August 1,1991, from The United Illuminating :
i Company to The Bank of New York, Trustec (Exhibit 4) !
(4) 4.2 (5) Copy of Partscipetson Agreement, dated as of August 1,1990, among j (10) Financialleasing Corporation Mendian Trust Company, The Bank of New )
York and The United Illuminating Company. (Exhibits 4(a) through 4(h),
inclusive, Amendment Nos. I and 2).
(10) 10.1 (6) Copy of Stockholder Agreement, dated as of July 1,1964, among the unous stockholders of Connecticut Yankee Atomic Power Company, including The United Illununstmg Company. (Exhibit 5.1-1)
(10) 10.2a (6) Copy of Power Contract, dated as of July 1,1964, between C=-imt Yankee Atomic Pcwer Company and The United Illuminating Company.
(Exhibit 5.12)
(10) 10.2b (1) Copy of Supplementary Power Contract, dated as of March 1,1978, between Connecticut Yankee Atomic Power Company and The United Illununating Company, supplementing Exhibit 10.2a. (Exhibit 5.16)
(10) 10.2c (7) Copy of Agreement Amending Supplementary Power Contract, dated August 22,1980, between Connecticut Yankee Atomic Power Company and The United Illununating Company, amending Exhibit 10.2b. (Exhibit 10.2b)
(10) 10.2d (8) Copy of hanet Amendment of the Supplementary Power Contract, dated as of October 15,1982, between C=-icut Yankee Atomic Power Company and The United Illununating Company, amending Exhibit 10.2b. (Exhibit 10.2d)
(10) 10.2e (9) Copy of Second Supplementary Power Contract, dated as of April 30,1984, between C= icut Yankee Atomic Power Company and The United Illuminating Company, supplementing Exhibit 10.2a. (Exhibit 10.2e) !
(10) 10.2f (9) Copy of Additional Power Contract, dated as of April 30, 1984, between !
Connecticut Yankee Atomic Power Company and The United Illuminating Company. (Exhibit 10.2f)
(10) 10.3 (6) Copy of Capital Funds Agreement, dated as of September 1,1964, between C=-imt Yankee Atomic Power Company and The United Illuminating Company. (Exhibit 5.1-3)
(10) 10.4a (6) Copy of Connecticut Yankee Transmission Agreement, dated as of October 1,1964, among the various stockholders of Connecticut Yankee Atomic Power Company, including The United Illuminating Company.
(Exhibit 5.1-4)
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Exhibit 1 Table ' Exhibit Reference item No. H9 No. Desenption (10) 10.4b (10) Copy of Agreement Amending 'and Revising Connecticut Yankee Transmission Agreement, dated as of July 1,1979, annending Exhibit 10.4a.
(Exhibit 5.1-7) .
(10) 10.5 - (1) Copy of Capital Contributions Agreement, dated October 16,1967, between
'Ihe United Illuminating Company and Connecticut Yankee Atomic Power J
- Company. (Exhibit 5.1-5) l (10) 10.6a G). Copy of NEPOOL Power Pool Agn= ament dated as of E-3 "
- 1,1971, as
,' amended to November 1,1988. (Exhibit 10.6a) )
(10) 10.6b (11) Copy of Agr-nant Setting Out Supplemental NEPOOL Understandings, ;
dated as of April 2,1973. (Exhibit 5.710)
(10) 10.6c G) Copy of Amendment to NEPOOL Power Pool Agreement, dated as of 1 March 15,1989, amending Exhibit 10.6a. (Exhibit 10.6c) ;
i (10) 10.6d G) Copy of Agr=nant A=W NEPOOL Power Pool Agreement, dated as of - l October 1,1990, amending Exhibit 10.6a. (Exhibit 10.6d) 1 (10) 10.6e (12) Copy of Agreement Amanding NEPOOL Power Pool Agreement, dated as of l E-g= *-:: 15,1992, amending Exhibit 10.6a. (Exhibit 10.6e) i A- 10.6f Copy of Agreement Amending NEPOOL Power Pool Agreement, dated as of (10) (12)
June 1,1993, amending Exhsbit 10.6a. (Exhibit 10.6f)
) (10) 10.7a G) Copy of Agreement for Joint Ownership, Construction and Operatson of New ,
Hampshire Nuclear Units, dated May 1,1973, as amended to February 1, l 1990. (Exhibit 10.7a) 1 (10). 10.7b (13) Copy of Transnussion Support Agreement, dated as of May 1,1973, among J the Seabrook Companies (Exhibit 5.9-2)
(10) 10.7c (2) Copy of Twenty-third Amendment to Agreement for Joint Ownership, l Construction and Operation of New Hampshire Nuclear Units, dated as of ,
November 1,1990, amending Exhibit 10.7a. (Exhibit 10.8ab) l (10) 10.8a (10) Copy of Sharing Agreement - 1979 Connecticut Nuclear Unit, dated as of ;
September 1,1973, among The Connecticut Light and Power Company, l The Hartford Electric Light Company, Western Mn===rhusatic Electric )
Company, New England Power Company, The United Illuminating l Company, Public Service Company of New Hampshire, Central Vermont
]
Public Service Company, Montaup Electric Company and Fitchburg Gas i and Electric Light Company, relating to a nuclear fueled generating unit in Connecticut. (Exhibit 5.81)
(10) 10.8b (14) Copy of Amendment to Sharing Agreement - 1979 Connecticut Nuclear !
Unit, dated as of August 1,1974, amending Exhibit 10.8a. (Exhibit 5.9-2)
(10) 10.8c (6) Copy of Amendment to Sharing Agreement - 1979 Ca==*icut Nuclear Unit, dated as of December 15, 1975, amending Exhibit 10.8a. (Exhibit 5.8-4, Post effective A-=4ent No. 2)
(10) 10.9a (1) Copy of Transmission Line Agreement, dated January 13,1966, between the Trustees of the Property of The New York, New Haven and Hartford Railroad Company and The United 111uminating Company. (Exhibit 5.4)
(10) 10.9b G) Notace, dated April 24, 1978, of The United Illuminating Company's intention to extend term of Transnussion Line Agreement dated January 13, 1966, Exhibit 10.9a. (Exhibit 10.9b)
(10) 10.9c (7) Copy of later A c, a.:, dated March 28, 1985, between The United Illuminating Company and National Railroad Passenger Corporation, supplementing and modifying Exhibit 10.9a. (Exhibit 10.9c)
_ . _ _ _ . . _ _ _ . _ . _ _ _ _ . ~ . .
Exhibit Table Exhibit Reference Item No. ML No. Descnotion (10) 10.10 (8) Copy of Agreement, effective May 16, 1992, between The United Illuminating Company and Local 470-1, Utility Workers Union of America, AFL-CIO. (R.xhibit 10.10)
(10) 10.11 (12) Copy of Fuel Oil Purchase and Sale Agreement, dated as of October 1,1993, among Tosco Corporation, The United Illuminating Company and The Connecticut Light and Power Company. (Confidential treatment requested)
, (Exhibit 10.11)
(10) 10.12 (8) Copy of Coal Sales Agreement, dated as of August 1,1992, between Pittston Coal Sales Corp. and The United Illuminating Company. (Confidential treatment requested) (Exhibit 10.13) l '
- (10) 10.13 (2) Copy of Fossil Fuel Supply Agreement between BLC Corporation and The a Umted Illununating Company, dated as of July 1,1991, (Exhibit 10.31)
- (10) 10.14 Copy of Revolving Credit Agreement, dated as of December 15,1994, among !
! The United Illuminating Company, the Banks named thenein, and Citibank, 1 N.A., as Agent for the Banks- l v (10) 10.15a* - (8) Copy of Employment Agreement, dated as of January 1,1988, between The l United Illuminating Company and Richard J. Grossi. (Exhibit 10.22a) 4 (10) 10.15b* (15) Copy of Amendment to Employment Agreement, dated as of July 23,1990, l between The United Illuminating Company and Richard J. Grossi, !
i amending Exhibit 10.15a. (Exhibit 10.26a) l (10) 10.16a* (8) Copy of Employment Agreement, dated as of January 1,1988, between The l i United Illununatmg Company and Robert L. Fiscus. (Exhibit 10.23a) ]
i (10) 10.16b* (15) Copy of Amendment to Employment Agreement, dated as of July 23,1990, between The United Illuminating Company and Robert L. Fiscus, amending Exhibit 10.16a. (Exhibit 10.27a)
(10) 10.17a* (8) Copy of Employment Agreement, dated as of January 1,1988, between Tbc United Illuminating Company and James F. Crowe. (Exhibit 10.24a)
(10) 10.17b* (15) Copy of Amendment to Employment Agreement, dated as of July 23,1990, between The United Illuminating Company and James F. Crowe, amending Exhibit 10.17a. (Exhibit 10.28a)
(10) 10.18' (7) Copy of Executive Incentive Compensation Program of The United Illuminating Company. (Exhibit 10.24)
(10) 10.19a* (15) Copy of The United Illuminating Company 1990 Stock Option Plan.
(Exhibit 10.33)
(10) 10.19b* (12) Amendments to The United Illuminating Company 1990 Stock Option Plan, adopted November 22,1993 and January 24,1994. (Exhibit 10.21b)
(10) 10.20* (16) Copy of The United Illuminating Company Dividend Equivalent Program.
(Exhibit 10.20)
(21) 21 List of subsidiaries of The United 111uminating Company. ;
(27) 27 Financial Data Schedule (28) 28.1 (8) Copies of significant rate schedules of The United 111uminating Company.
(Exhibit 28.1)
- Management contract or compensatory plan or arrangement.
C t
The foregoing list of exhibits does not include instruments defining the rights of the holders of certain long-term debt of the Company and its subsidiaries where the total amount of securities authorized to be issued under the instrument does not exceed ten (10%) of the total assets of the Company and its subsidiaries on a consolidated basis; and the Company hereby agrees to furnish a copy of each such instrument to the Securities and Exchange Commission on request.
(b) Repons on Form 8-K.
Items Financial Statements Date of Reported Filed Report 5, 7 None ip-- ':s29,1994 i
n 9 s
<. Coo 3ers """ "#-""
&Lyarand a professional services firm CONSENT OF INDEPENDENT ACCOUNTANTS
, We consent to the incorporation by reference in the Post Effective Amendment No. I to the l Registration Statement of The United Illuminating Company on Form S-3 (File No. 33-50221) and the Registration Statements on Form S-3 (File No. 33-50445 and File No. 33-55461), of our report, dated January 23, 1995, on our audits of the consolidated financial statements and financial l statement schedule of The United Illuminating Company as of December 31,1994,1993 and 1992 and for the years then ended, which report is included in this Annual Report on Form 10-K.
& Y, Hartford, Connecticut March 7,1995
\
i l 1 Ccopers & Lybrand L L P. a registered Imled laatnMy partnership. is a member firm of Coopers & Lybrand (International)
9 SIGNATURES *o..,
Pursuant to the requirements of Section 13 of the Securities Exchanne Act of 1934, the Company has duly l caused this report to be signed ou its behalf by the undersigned, thereunto (uly authorized.
THE UNITED ILLUMINATING COMPANY By /s/ Richard J. Grossi Rschard J. Grossa Chairman of the Board of Directors and Chief Executive Officer Date: March 8,1995 Pursuant to the requirements of the Securities Frehange Act of 1934, this repost has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates invlicasad Eismaansa Etic Ratt Director, Chairman of the Board of Directors and
/s/ Richard J. Grossi Chief Executive Officer March 8,1995 Of5cer)
Director, Presulent and
/s/ Rahert L. Fiscus Chief Financial Officer March 8,1995
,p-...n,nd hF nancial a
/s/ John D. Fassett Director March 8,1995 (John D. Fassett)
Director March ,1995 (Wilhani 5. Warner)
/s/ John F. Croweak Director March 8,1995 (John F. Crowcak)
/s/ F. Patrick McFadden. Jr. Director March 8,1995 (F. Patnck McFadden, Jr.)
/s/ J. Hueh Devlin Director March 8,1995 (J. Hugh Devhn)
/s/ Betsv Henlev-Cohn Director March 8,1995 (Betsy Henley@)
/s/ Frank R. O'Keefe. Jr. Director March 8,1995 (Frank R. 0%eefe, Jr.)
/s/ '-- -- A. T"- Director March 8,1995 (James A. Thomas)
Director March ,1995 (David E.A. Carson)
/sf John L. Lahev Director March 8,1995 (John L. Lahey) 80 1
l
.~
Schedule U Valuation and Qualifying Accounts THE UNITED ILLUMINATING COMPANY SCHEDULE II- VALUATION AND QUALIn'ING ACCOUNTS For the Years Ended Decanber 31,1994,1993 and 1992 Uhousands of Dollars)
Col. A Col. B Col. C Col. D Col. E Additions Balance at Charted to Charged Balance at Beginning Costs and to Other End of Classification of Period Expenses Accounts Deductions Period RESERVE DEDUCTION MtOM i ASSET TO WHICH IT APPLIES: i Reserve for uncollectible .
accounts: l 1994 $4,700 $9,976 - $9,776 (A) $4,900 I 1993 3,900 8,971 - 8,171 (A) 4,700 1992 3,200 8,741 - 8,041 (A) 3,900 i
l I
NOTE-(A) Accounts written off, less recoveries.
1 l
i 1
l S-1