ML20009F281: Difference between revisions
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Latest revision as of 12:48, 15 March 2020
| ML20009F281 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 07/21/1981 |
| From: | FITCHBURG GAS & ELECTRIC LIGHT CO. |
| To: | |
| Shared Package | |
| ML20009F275 | List: |
| References | |
| NUDOCS 8107300241 | |
| Download: ML20009F281 (100) | |
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s 8107300241 810721 PDR ADOCK 05000443 24 O 4 N*
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. Gas and Electric IJght Company was chartered as Fitchburg . > -
>gg, GasCompany. In tam, ranowing acquisition or= ==,jority orthe 4 g g ..;,.g;p q jp;; % y$R %g g .. g g*
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-laser, Flechburg Gas and Ehsrkdrsupplyingenergy on a Wgqjf O rennd4hedx:k basis m its more than 23,000 === nercial, .
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Contents letter to Sharrholders . 3 Year in Review ti
.\Lumging Our Energy Resounrs (i Sening Our Gas Customers' N mds 7 lhploring Cogeneration Participation 9 Assisting Our Customers 9 Educating Our Consumers 10 Onputization . I1 Firuuicial 6 in 12 Ikxuri of Dirrctors and Oflicers . .28 a
I l
FITCHBURG GAS AND ELECTRIC LIGHT COMPANY Using our energies to serve you best AnnualReport 1980 4
Financial Highlights of 1980 2 1980 1979 I Net inconic S 1,703,190 S 2,2tio,70ti { }
Eainings l'er Ascrage Ciniunon Share S2.78 S-1.31 1)isi<lenils l'ai<l l'er Conunon Sliare S2,60 S1.90 Electric ()l> crating Revenues S28,525,028 S21,175,29(i Gas ()1>erating Res enues S13,785,001 S 9,78(i,185 Total O[> crating Res enues $42,310,029 S31.2til,181 Kilowat -1Iours of Ele ( tricity Sohl 370,946,282 391.:,ti91,132 Ascrage Annual Kilowatt-llour Sales l'er Resiciential Custoiner 4,844 5,033 Nuinl>cr of Electnic Custoincis 22,339 21,711 Thousancis of Cubic Feet of Gas Solcl 2,893,861 2,313,11(i Ascrage Annual Cubic Feet Sales l'er Resiciential Custoiner 97,013 8(i,131 Nuniber of Gas Custoiners 14,280 13,ti93 Net Utility I'lant $40,320,626 S37,291,322 Nuinber of Em]>toyces 161 Itil Number of Connnon Sharehohlers 2,424 2,211 Nuinber of I'referreal Sharehoiclers 8 8 O
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Onjuly i I,1M3, .\ lain Strro t in Fitc hburg u asfa st dinminatralby a tre trio light. In thejunt yr at Fatt hbuvg Gas analFla toir ente vr<linto an "Ka r"u nt u oth the City <>l Fata hburgfor the e anvr r soon t,l sitr e t lightarrg ta high firo ssurr SWI sunliurn lamjn, an agter int nt u his h is r.\l>t t taltu .
sarr the City a totalof 5100.000 annually in '$ 'y y
energy Iosts af ter theJive-yu ar e orivo nicar juival. , r Aw . .i
- p. m *q g ._
To Our Shareholders: 3 Reflective of our nation's continu- classification in the City of Fitch-
) ing battle against inilation and its burg, which shifts the i>urden of efforts to develop practical solu- taxes from residential real estate to tions to continuing energy short- conunercial, industrial and per-ages,1980 has been less than satis- sonal property taxpayers, the lintory for Fitchburg Gas and Company's taxes have increased Electric. Net income li>r the year by 4357 adding an estimated was $1.763,190, down 25 percent S 140,000 on an annual basis to from the 1979 level of $2,260,706. our operating costs. (See Note 11 Earnings per avenige conunon to Consolidated Financial share, on a greater number of Statements.)
shares outstanding in 1980, were
$2.78, compared to S 1.34 in 1979.
A number oflitctoo must be taken into consideration in ac-counting for these results:
o Though the Company achieved a significant growth in the
<1uantity of gas being sold to its resi-dential customers, this fin orable situation was partially offset by the adverse elfects of the economic 1980 1979 1978 1977 1976 recession and conservation meas-A tanporary restraining order urcs upon the overall quantities of gas and elettricity being sold to the to pievent unplenientation was Company's industrial customers. ".mgla by nulusuial and comyna7
.al inoperty owneis in the City ol j experienced, principally ; v esult e A rise in operating costs was Fuchlyurg: tlus petuion was dem,ed.
of an accounting adjuso u.t re- A pet tion to the Appeals Lourt quired bv the F[deral * ' rg' Reg-
""h "" "M'Y has been IU"*"I "$'
renewa"l At tim tune of ulatory Conunission, higher tree tiimniing costs, and operating ex-II"' PII"'I"M " S'iperior Lourt penses associated with the contin- imhe has rulal .ni faun of de nation of the gas conversion busuww conunum,ty am! tlw yaw ,
sachusetts Supreme Judicial Lourt I "'"M"" " ' has scheduled the niatter for a hearing on Alarch 2,1981. Fitch-burg Gas and Electric had indi-cated to the City of Fitchburg that a tax increase of this size could neces-sitate a base rate increase request to the Department of Public Utilities of between 3.6 and 4 percent f or this item alone.
Analysis of the overall picture, 1980 1979 1978 1977 1976 "UVU # C5 tis ause to k cautiously optmustic f{or the year
- Though Fitchburg Gas and 1981. Despite dilliculties experi-Electric's local property tax de- enced inJanuary 1981 due to creased as a result of the favorable inmsportation problems coinciding settlement of the property tax case with peak demand during unprec-with the City of Fitchburg in late edented cold weather, we are opti-1979, we are concerned that the mistic that we will continue to see settlement achieved has been ne- growth in our gas sales revenues.
gated by an increasein local prop- This optimism is based on the erty tax rate effective the second Company's successful efforts to se-half of 1980. As a result of tax cure adequate natural gas and sup-
I I
, piemental supplies f or long-term iluilt fi>r I itchburg Gas and Elec- tiimed improved performance in !
sales des clopment. tric, the Service Center was sohl to 197", the quarterly common divt-The Company has been success- a leasing firm and isleased back by dend was increased with the Febru-ful in containing those costs within the Company. lluildings f ormerly ary 15,1980 payment to S.65 per its omtrol at a level which since in use,induding the plant ollice share. This is an ellective annual 1978 has climinated the need to file and garage, and the ohl mill build- rate of $2.60 per share and com-h>r increased base rates, a singular ings, are expected to be sold or pares with the amount of $1.90 per au omplishment in todav's spiral. common share paid in 1979. It is ing economy. The Company is, however, constanilv evaluating the sn*"""*'["Z"[ir'bkn
, t, currently estimated that no part of k han paM hhg P.M Aw roncixr oriinri.
need 6)r ina cased' rates and will constitutes a tax-free return of take action when appropriate. m4 nm d r%s a capital.
8"' I e .\lanagement nrpm-imsm & x /.2n . ___ iniereu sra Capitalexpenditures in 1980 to increasing etha.'s conunit ency and .u n- ment ro m ,,5. ,,59 amounted to S6,061,9 l 1, im luding prming productivity at alllevels of 522 costs associated with the constru -
the Coinpany continues to gener. rue. " tion of the new customer service s23 ate positive rc<ults and is expected vs r.ci a center and continued im estment to be most evident with the Com- r*d P- in jointiv-owned generating facili-pany's reh> cation to its new service 'T41"_sa" ties. Also included is installation facility early in 1981. Designed to $66
- 2' i
facilitate customer senite and op- in i erations, the new Center is ex- Di"".d*'d ss2 perted to kmer operating costs through redu ed buihling mainte-l nance and repair costs, savings in
! heating and cooling, and savings leased within a thice ycar period.
Irom increased etliciency due to The Company's ollice buihling was g
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the ccmralized h> cation of most sold in early 1981 at its appraised employ ees u hit h will improve in- value.
tra-Company conununications. Reflecting the Company's con- iggo ig79 ig73 ig77 ig7s Common Stock Market Price and Dividends The Common Sto(L of the Com-pant is listed on the American Sax L Ex< hange (Sy mboh FGE) and the Boston Stock Ext hange. j The number of stockholders of re- i coni of the Company's Common Sim L at December 31,19SO was 2,-12l.
1980 1979 1978 19so 1979 1978 itmo 1979 197N 1980 1979 197H 1980 1979 1978 Ist Quarter 2nd Quarter 3rd Quarter 4th Quarter The Year 26'*
. . 23 % 23 i g i ,, 22s, 2o,i 128 Yrd""I C""ti""""' O ".uion l - unidends l' aid li.a b Year sini e 18w 2 8 "*
i9 ig% 19 % The Company expec ts to c ontinue s equirements. and linanc ial cundi-16 i7 i7 17 ts policy of paying legular cash digi- tions. In addition, the pas meitt of di\i-dends. ahhough theie is no assuram e dends is subjet t to Restric tions de-16 % 16 % '"'* as so lutuic di\idends because they ar e soibed in Note s tolhe Finamial i si , is5 I6% 15 % dependent on lut tu c cai nings. capital Statements.
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. ~ . _ _ . _ _ _ _ _ _ . _ __ - _ _ _ - . _ _ _ _ _ _ _ _ _ _ _ _ _ _
5 of a new high piessure gas main report deals with the communities --
) to sene an industiial customer, which we serve - some 23,110 General Electiic Small Tuibine commercial,iiulustrial and resi-1)isision, the r eplu ement of an dential customers in an area en- ,
outmoded gas main in South compassing approximately 170 Fitchburg,and the athlition of a square miles in north central Slas-second liquefied natural gas (1.NG) sachusetts. Key to the sustenance of vaporizer in Westminster to assure every aspect of this society, be it icliability aini to supply incicased work, play, health, education or customer needs. Athlitional ex- transportation, is Ihe availability of penditut es were made for conver- a dependable energy supply.
sion burners and gas water heaters Fitchburg Gas and Electric, com-w hit h are s ented to customers, aiul mitted to these conununities as a li>r fur'her im est ment in our ex- whole as well as to each and every pioration aint desclopment subsid- customer, recognizes the magni-iary, Fitchburg Energy llevelop- tude of the responsibility entrusted ment Company (FEl)CO). to it. Thejob to be done is increas-Capital expenditures li>r 1981 are estimated at SI 1,782.500. This ingly complex. Energy is no longer cheap. nor plennful. It must be
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- imount includes a substantial in- used ethr,ently i and with restramt.
vestment injointly owned nuclear it must be deseloped with regard plants, a continuing im estment in for the emironment as well as for the gas conversion program, al- the needs of society, aint all of this though at a les el much lower than in the midst of severe economic 1980, a fui ther im estment in pressures caused by inflation.
FEI)CO, and ongoing expendi- We begin oper;uion in 198I tures for h> cal transmission and dis- under the roof of a new service tribution facilities. facility designed toimprm e and InJune of 1980 the Company strengthen our service, as well as to sohl 100,000 a<hlitional shar es of improve our ability to control costs Coramon Sto( k to the public in a ellectivelv. Utilization of this new negotiated oilering at 523 per Center piuvides the op[mrtunity to share. Lead underwriter for the fia us on and renew our commit-sale was Alerrill I.viu h, Pierce, ment to satisfy our sharehoklers Fenner & Smith I'ncoi jmrated. and our customers. It is important The Company privately sohl that these underlying oldectives be
$5,000.000 ofits 15M Notes viewed not in conflict with, but as due September 1,2000 to complementary to, the f undamen-Teachers Insurance,nd Annuity tal objective of providing a icliable Association of America on October and affordable energy supply while 30,1980. Proceeds ofImth sales at the same time providing Em at-were tised to ieduce short-terin tra( tive im estment to our snare-borrowings incurred in connection hohlers.
with t he Company's ongoing capi-tal(onstruction program. g %
1)ne to the sue of our capital connuitments,Imth debt and eq- Charles 11. Tennev 11 uity financings will probably be un- Chairman of the lioard dertaken in 1981,although firm of1)irectors plans have not been established.
The size and timine of such financ-ings will de[yend on developmenty
) m the security markets and our M dL/'m# h-floward W. Evirs,Jr.
ability to mee't terms conunitted to in prhious financings. President The theme of this y car's annual l
Year in Review ,,
( ,
nmnn.d , u ( .~ m<n,on i um n n in opn .,aEnJiiih O ur I
'""" ~ Mana[Uf " " ' " " ' ' ' ""- -" '" .""U "- " > " "" ' "
Enerm' esources s i- i- i Gd' 8 ni n iins < il j u s o nluig i o n si i \ ii i M uhlln u n .u n t in a j n i il >h u is i >t n i o t l ui o s u n h i in l a\ t i s ,i n a n u x il i ici n.n n in.d i in t hi i .u ni rsi .ilai n en itn n o ,a < i i o n in ut al .u n l clin n ni ui h o n e n .nlisists. i i ,n . l in n il u n h I i n l se o n i < s .n o t ni ic t ins iil .issisi - iln gi u ct ninenl in.u n i.nc n i < in . og y , na 3 nu i n n i uso u no s in .n lu n nig s.n n n unlu cs n i i n lui e i ch.n u < s in Illys IIlt iillg!i t ( 8llst i \ 111a lll i st s illl t ol In il[ l nit ('lliIl\ l ' U Il l . c il il ('l-
\ . ill t.t l llt i'I n l Q\ i t 'si s t i l t t 's \i( elf (1- [ t al i s is , I t'} )l.n (' tsisll\ t ill- f li ('a l Qt'll nigh . u c i . in n n ur n i j o n sut uno, ci .u n in u n h a gi c.nci sh.u c iil n u . , p r , . . , a ,. ,i a,,, , g , , ,
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\.u n i . ilo >u uli j o agin.n n .u nu t is i Ic.n acin i .un i clo n n in < i nno u nc l' > II n t ilt 'i Q\ illl( Illlli.i . i t t e lgill/- li s 11. l \ ( .i lily k l } )! li ll ll \ i n 't i n 111 l IQ I ll ill u k l'i iu ('l ( t illl-llly ll1.il ll11 r HiQ ll ( lisla 8!! n't s ills t .n - ( Ill ( It II ,! M I 'd l . l ' INII. i !it ' \ l . l s s. l - jhtll\ .tlli k Ili 8ll1 !'ll!I!n h('l \ It l' i n in u. i .ui i a lunnue n i po n nic < host u s I)cp.u inio n iil Publa l ul ( iiiiip.u n < >t \cu llanipslui c i n n sh.u t In ih h i s u n h .i tan icini n nics . Ill'1 i .ippii n n i pin i h.iscs i n I hese pu n h.ncs. .uin iin n uiu n i l o iln u n esin n in I in hhin u ( ..is .u n i i lo ii n s >t a n incuau.n h ,,1 sc.ihi .ik1.ip.n n\.
.n h!n n ui.d ll on ll'i pen n i u nci - w ill hi niu t he ( < on p.u n 's sh.u c in ship num csi ni scalni ik Nin h .o 5c.d u < >< >k n i Wi l 4 p< i ( n u < o 'l l I nus # l .u n i # _' l i e o n I h c ( < in i nce.ns .in s
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, The completion of the first umt the Company's total amiual natural ,
l of the Seabrook plant is scheduled gas supply by 365,000 MCF l for late 1983, and the secom! in (thousand cubic feet) or i 1 percent.
1985. Formal approval of the project is The purchase price of the addi- required by lx>th the United States tionalinterest aggregates S 17.80 and Canad'ian governments belbre million, exclusive of an allowance the gas starts flowing south. It is i ihr funds used during construction expected that the necessary ap-and nuclear fuel. Initial financing provals will be received to allow gas will be through short-term bank to flow by April 1982.
borrowings which will be converted We are continuing to pursue the perimlically to long-term financing development of domestic gas and through issuance of common and oil supplies through our explora-preferred t *ock and long-term tion and development subsidiary, debt. Seen .o a means ofincreasing Fitchburg Energy Development our ability to supply future needs Company (FEDCO), which is a for electricity at the inost economi- partnerin Alinuteman Exph> i cal rates, these purchases will in- ration Company (Minuteman). i j crease the nuclear share of our to. Minuteman has entered into a i tal fuel mix to approximately 35 flirm-out agreement with Fortune (
percent. Gas and Oil, Inc. (Fortune),
, The economies of nuclear gen- t, t
i cration were demonstrated clearly 73 33,,. g,3, f,j,,y,,, ,gg g ,, ,3, .
to our clistoiners this past stiininer. 4 fg ,gg n.g,,.34. g m3 p ,
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While Pilgrim I nuclear plant m ya. f.g3,s ,,j,,,,,.fo,4 ,,gj,,,.,,,,p,s j I Plymouth, N!assachusetts, was f37uygh f f3,7ccjon. /,, j
~
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} shut down fromJanuary to May for refueling and maintenance, j' 4 Fitchburg Gas and Electric had to // / '
replace the nuclear energv nor- #- / j* .
mally received from Pilgrim, under [' . 4 .N 'q \ k our purchase power contract with /. p e
l
,M/ ' I Boston Edison Company, with' electricity generated by inot e costly --f [ !Y ,> -
p[/ $/
oil. The resumption of operation of the nuuear piant resuitco m a 38 percent, or 1.6c per kilowatt-hour. decrease in the electric fuel
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adj,ustment charge to our cus- / '+
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Serving Our - e Gas Customers' C _A Y===
Needs In October 1980, Fitchburg Gas
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and Electric acquired an interest in v Boundary Gas, Inc., a new corpo-I ration managed and operated by Northeast Gas Markets Inc. of Bos- _ _ _ -
ton. Ownership of Boundary Gas is .
divided among 14 northeastern utilities in direct proportion to the share of natural gas to be delivered ',
l from C;mada to their service areas. , _
^ ' ,
Fitchburg Gas and Electric's partic-1 ipation in the project willincrease . _.
1
8 Changes in fuel used in generation, electricity purchased over 2.7 inillion Ihr a total of cus- I for resale, gas purchased for resale and operating expenses tomer savings of nearly $1 inillion for the years 1980-1976. at current oil prices.
-LL ,- .-m.__ w__ ~ ~ g,,, ~'*1979 _" "_!978 " P. le77 7" P - 1976ya . Our two-year ellin t to convert . .
opeianng esirnses, viitually es ery ex.istmg gas servue oiber $3,572,558 53.132.726 si.833.28I s i.627,310 s 1.33x 393 to Iull gas use having been accom-ticini<in puu hasc<l plished,1981 marketing objectives bn iesile 13,313,618 10.170.303 M.338,013 8.210.287 6.359.3tHi have been loweied to 500 conver-leurl usc<lin sions, consistent with our futuie elri n ir genciation -1,917,372 3.101.X32 2.138.983 2.083,316 1.869.036 gas supply cominitments aiul our Gas pun hasc<l los ability to install 300 new services.
resale 9,172,312 3.830.610 1.331,6t Hi 3,709,113 2,983,62M [g lggg,j,()ggggggg3l gag gager heaters are budgeted to continue
% Increase from the prior year the ongoing replacement ofinelli-
- - - cient tankless-type water heater s 6- - _ _ M_ 9.00 7. R'197.9. ~ - l.978 " -Q 97a7, presently m , use on cential spa (c oiri ating ex;rnses, heaters and oil furnaces.
ot he 281u 8.6 % 6.2% i.19 6.79 In order to increase the reliabil-1 lc.nitin pun ha'ril itv azul capability of our liquefied foitesale i i 1.3 29.1 22.6 16 29.0 iNitural gas (1.NG) facility in West-Furlusc<lin ininster,ihe Coinpanv has coin-eleini< genera 6on 163.1 t-1.5 37.6 3m 11.3 pleted nuxlifications sf the plant cas pun hasc<l for and supplemented the direct-fiied irsile 207.2 56.8 33.0 16.9 21.2 vapori/cr with a watei bath vapor-i/er to be used Ihr the gasilication whereby Fortune is drilling ten wcils on acreage in NIorgan f.3,,,,,,,,,, ,j,yi,,f,,,,, ,,, y,,,f 3,,,,,, , q,y,y j,,,,
Cotiiity,()hio. N1iiiuteinaii part- y v,,,y,,yy y,, b, a,., op p ., y,, j,, yj, (;,,ay,7 f:,y, j,j,ugg a,,a, liers have IIi st optioit to pu Tha%e '
" .I rnitali.'eduntival broirren dotrisIis etIslatir aily gas discore ed utuler this DUTmq ~ ujihn o,uunti,,y,,f.
agreement. It is expected that the ; %y '-
m 4
Fitchburg Gas aint Elec tric service area will begin to receise gas sup- t
%gp .,o ky ,.
, _ .3
- N plies developed through the f[. ~D I FEDCO piojects sometime in 1981. i r' l "
5 in addition, FEDCO, llav State ~U _
Exploration,Inr.and Ailington ; ,
I' - " " "
Exploration Company base d4 >
. formed Niinuteman Ventuie No. l % 'M -
with the .ntent of expanding explo- gr.
., my "
ration into the major gas pnxluc- t t<
~ k s,i Q : J' dM ing areas of the Gulf Coast. p' % df' J llating procured a future gas 9L7 supply conunitment, Fitchburg Gas 7 and Electric has pursued 1br the ,
past two years an aggressne gas coinension program. As a result of 19S0 space heating aiul water heat-ing coinersions, the use of #2 oil for iesidential space heating was reduced bv nearly 1.5 inillion gal-lons during the > car 1980, saving
our customers os er 5600,000. This c) b3 brings the ( umulatise total number ,
of gallons of oil s(ive I tbrough Ihe ?' r two-year conversion piogram to ,h, af ,;wW ,g,g q
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h ing i iniinnin guonnisnoage ci gs .\< t .n ni tin thei inpuicinents i so s n n u lui h. ab ing u n h t he .n n a - of I he ( un nnonw e.ih h of Niass.i-
! ip.oni supph icsulung tioni the < huscus f oi all inilitics to pins alc j lionini.n s ( ..is pu >ln i. slo oik t pi o- icsi<lentul enci gs .nnins. I'nc h-s ale i ts k 1111 sit t}lt it ill I t'sf illii t s b ' !all g ( '.1% ain t ldn 11 a ll.ts I.illin 11(11 s.tilst s < oil ( tlsti oilei ilet11s alul ( I b 1 d( ! i}ni8gl Alll!I i'lI*cl-
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help our customers consen e en- icading amt billing ss stem, u hit h is of educational materials, iin luding ergy ami sas e money. lleing con- expected to iinicase opt rational fihnstrips, publications and activity I ducted in moperation with the ethciencies. sheets covering such subjects as a!-
NIassachusetts Ofhce of Energy Re- In addition, a Customer Senice ternative energy sources, fi>ssil som res, the lletter ilome 1Icat Information System, which pro- fuels, mnservation, safety and ca-Council,and the New England vides customer account infonna- reer choices in the energy field.
Fuel Institute, the program pro- tion on video display tubes at the The Company has also contin-vides an analysis of the wap an in- wor k station:, of customer contact ued a schedule of audio-visual dividual home uses energy and people, is being put into servic e in presentations and speaker pro-what should be done to sase en- early Spring 1981. It is expected grams throughout the connuuni-crgy, as well as estimates of the that this system will esentually pro- ties served. These have proven to costs of making imprm ements arul vide on-line initiation of customer be a valuable means ofinaintaining the iesultant savings. Customers senic e orders.
who elect to have an audit can ex-pet t to sase up to 30 percent per Educating a,gu ,% a e e,,,a ,a, in ,h, gau,,,c tm year on energy costs if they follow Qur Consumers - - ~ ~ <- ~ ~ ,h a it zou Lwn <u th, han,9from4 n a, spi /,7 through on the iemininendations h.""MI "" " "" d" """
made. Not only will customers ben- udM null' M4 th< ana is a wid</r cfit, but energy sased will tend to Inugpuns q. nt he consumer are an ,3,c,,,j;,g y,g,q;,,3,aj,,, u y,s j,s,g,7 r edm e dependence on oil impoi ts M"'"M Pfioy ny for Fitchburg Gas and make moie gas available 1i>r
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"" Electnc. I brough the ellorts further com ersions from oil to nat- of our Lonunung Relanons De-par tment, some 2a schools in myr ural gas. The audit program is service area have received a vanety funded by a combination of a nom-inal(han ge fi>r each audit plus a ..)
sun hai ge to all customers.
Construction of our new Service yJ Center was completed within budget and within two months of jd
'F Q, f its original sc hedule. Formal dedi- !
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Consolidated Balance Sheets in ASSETS ' I)et einber 31, 1980 1979 l?tilits I'l.uit ( st < ost): Eleti it $30,453,730 S29.788,934 Gas 12,796,146 10,763,237 Co nuinti 1,105,181 1,393.330 Construc tion woi k in luogiess (Note 9) 6,564,740 3,196,391 L:tility Plant 51,219,797 47,111,132 1.ess: Au uinulate<lilepreciation (Note 1) 10,899,171 9,S-19,810 Net if tility l'lant 40,320,626 37,291.322
.\l.* cil.uicous Ph>sical Property (at cost) 26,005 2ti.003 Insestnients(Note 1) 369,519 318,006 Curient Assets Cash 1,096,992 1,727,899 Au ount s rn eivable -less allow ante h>r doubt ful au ounts ol S3til 300 and S 177.380 8,456,121 3.082.372 I Ref utulable im ome taxes 397,636 261,990 .\laterials and supplies (at aserage t ost) 829,746 877,721 Picpay inents 389,132 829,873 Property tax reluinis 554,601 162.821 Total Current Assets 11,724,228 9,213,878 I)elert ed I) chits LJnainortiicd debt expen e(amorti/ed oser term of sei urities) 385,016 273,932 l'namortifed (ost of abainioned properties (Note 2) 2,116,214 2,97ti,821
()ther ( Note 2) 578,089 616,33I Total I)elerred 1) chits 3,079,349 3,899,0S1 T()TAl. $55,519,727 S30,M 13.293 O ( l lie at unnpanying noirs ar e an integral pait of t hese staicineniq
13 LIABILITIES O 1980 I)eccinber 31, 1979 Capitalization Coinnion Sto(-L Equitv (Notes 3 & 12) Connuon Stoc k, S 10 par value A ut horiee<l - 1,000,000 shares ()ntstan< ling- 08,-177 aint 133,173 shares $ 5,584,770 S 1,331,750 Preinitun on (oinnion sto( L 3,091,508 1,7~ 1,338 Capital stot L expense (454,805) t 41,737) Retaineil carnings 6,532,518 6,117,330 Total Coninion Stot L Equity 14,753,991 12,511,90i Reilcemable Pref eric<l Sto(L (Note 1) Cuinulatis e prel'erreal sto( L, S 100 par value 3by Series Authoriecci - 16,160 aiul 16,880 shares Outstan< ling - 16,010 aiul 16,160 shai es 1,604,000 1,616,000 8'i Series Authorireil- 21.230 ancl 23,000 shares ()ntstaiuling - 23,300 aint 21,250 shares 2,350,000 2,125,000 Total Redecinable Piel'errc<l Stm L 3,954,000 1.071,000 1.ong-tei m 1)cht ( Note 3) 21.573,000 16,780,000 TotalCapitalization 40,280,991 33.393,901 9 Curt ent I.iabilities 1.ong-term clebt <lue within onc 3 car 123,000 123,000 Notes pay able ( Note 6) 1,700,000 3 120,000 Au ounts pay able 5,421,359 1,993,368 Customer aleposits aiul i clutnis 531,062 238,673 Taxes actruc<l 103,642 167,860 I)ct' erred income taxes (Notes I aini 71 488,842 131,266 Interest an rue <l 575,718 -195.930 Total Curient 1.iabilities 8,943,623 11,392.319 I)el'eried Credits a t.'namortiicd innestment tax credit (Note 1) 1,873,123 1,383,601 Other 53,301 70,219 Total 1)elerred Cicilits 1,926,424 1,633,820 liet' erred lin ume Taxes (Notes I anil 7) 4,309,289 1.122.337 Rese n es - ( )i h er 59,400 -18,898 Conunitinents ( Note 9) TOT A1. $55,519,727 S30,813,293 0 .
...........,_ ~ _ ,__ .. ,P......,,s _ , _ ,
Consolidated Statements of Earnings i4 Years Ended December 31, 1980 1979 1978 Operating Resenues Elec t ric $28,525,028 $21,175,296 $21,157,512 Gas 13,785,001 9,786,18a e,919.991 Total Operating Resenues 42,310,029 31,261,181 29,077,533 Operating Expenses Operating ex penses, ot her 5,572,558 3,132,726 1,833,281 Ele (tric ity pun based for resale 13,515,618 10,170,503 8.338,015 Fuel used in elet tiic generation 4,917,372 3,-101,832 2,158.983 Gas pun based for resale 9,172,342 5,830,610 -1,331,696
.\f aintenam e 1,028,141 933,360 731,1i3 Depreciation (Note 1) 1,330,989 1,236,692 1,181,787 Amoitiration of(ost of abandoned properties (Note 2) 824,122 637,018 310,937 Prosisions f or taxes (Notes I and 7)
Federalim ome tax on net operating iiuome 535,350 107,816 1,216,312 Delerred Federaliruome 508,285 713,030 339,131 Amoitization ofinsestment tax credit (85,214) (89,019) (61,766) State iranc hise 61,341 112.318 81,103 Dele: red state frain hise 56,352 66,293 32.387 1.m al property - current 1,626,214 1,362,511 1,693,901
- abatement of prior > car -
(2-11.076) - Other 199,379 193,669 166,839 Total Operating Expenses 39,262,849 30,737,363 23,813,322 Operating Iruome 3,047,180 3.501,i18 3,232.211 Non-oper ating In< ome Allowance for other funds used during construction (Note 1) 134,577 116,319 118,373 Other (net ofincome taxes)(Note 7) 21,529 (27,603) 83,i18 Total Non-operating income 156,106 88,714 201,991 Gross lin ome 3,203,286 3,592,832 3,431,202 Income Deduc tions Interest on long-term debt 1,610,809 1,498,633 1,515,476 Other interest charges 544,782 325,396 233,839 Amortization of debt expense 18,361 20,170 16,324 Discount on long-term debt purchased for sinking fund (20,464) (3,030) (2,167) Other 3,360 2,816 8,992 Gross inmme Deduc tions 2,156,848 1,844,507 1,772,484 Allowance for borrowed funds used during construction (Note 1) (656,752) (312,381) (298,132) Net Income Deductions 1,500,096 1,332,126 1,474,352 Net Inmme 1,703,190 2,260,706 1,959,830 Disidend Requirement on Preferred Stock 273,602 281,751 287,107 Net inmme Applicable to Common Stock $ 1,429,588 S 1,978,952 S 1,672,443 Average Number of Common Shares Outstanding 513,384 455,475 433,475 Earnings per Average Common Share Outstanding S2.78 S4.34 S3.67 fl be auompan>ing notes are an integral part of these statements)
Consolidated Statements of Changes in Financial Position u (,,-~ I Years Ended December 31, 1980 1979 1978 Funds Provided By: Funds f rom Operations Net income $ 1,703,190 $2,260,706 S 1,959,850 Primipal Non-Cash Charges (Credits) to Earnings (Notes I and 7) Depreciation 1,350,689 1,236,692 1.181,787 Delcried Federalincome tax 161,589 687,616 311,666 Delerred state f ramhise tax 20,478 72,135 30,501 Amortization ofinsestment tax credit (85,214) (89,019) (61,766) Allowame for other and boirowed funds used d uring (onst rm tion (791,329) (628,700) (116,705) Pr operty tax abatements - (270,813) - A noitiration of deferred debits 894,435 722,385 6 IS -190 Funds Prosided by Operations 3,253,838 3,991,302 3,686,826 Net Pro (ceds from issuance of1.ong-term Debt 4,872,525 - - Net Proceeds from Sale of Common Stock 2,092,094 - - Other Sources - Net 508,500 179,616 221,299 Current Poition of Property Tax Abatement 270,813 - - Total Funds Prmided $ 10,997.770 $ 1,170,918 S 3,911.125 Funds Applied To: Additions io Plant $ 3,832,775 S3,270,600 S 3,098,508 hnestments in Non-utility Operations (Note 1) 125,747 233.814 271,222 i Common Sim L Dividends 1,313,921 865,161 683,017 k-' Pieferred Sim L Disidends 274,281 282,131 287,586 Funds Used for Retirement of Scu.., . s: 1.ong-term debt 207,000 198,000 191,000 Picferred sto( L 117,000 117,000 12,000 3,720,000 (1,150,000) 1,530,000 Det icase (lncrease) in Short-term Debt inn ease (Den case) in Woi king Capital, Euluding Short-term Debt 1,407,046 3,653,876 (2,192,208) Total Funds Applied $ 10,997,770 S1,170,918 $ 3,911.125 increase (Decrease)in Components of Working Capital, Excluding Short-term Debt: Cash $ (630,907) S! 268,118 S (312,002) Accounts receivable - net 3,373,549 1,197,22 e si,110 Refundable income taxes 132,646 261,990 -
.\laterials and supplies (47,975) 201,691 (20,187)
Prepayments (440,743) 628,553 (29.591) Property tax refunds 91,780 162,821 - Accounts payable (425,791) (I,160,119) (1,090,918) Customer deposits and refunds (272,387) 361,883 (256,117) Taxes accrued 64,218 103,215 (508,101) Deferred income taxes (357,576) 65.690 (63,885) (79,768) (12.953) 17,156 Interest ac crued Increase (Decrease)in Working Capital $ 1,407,016 S3,653,876 S(2,192,208) [I ( u fl he auompanying notes are an integral part of these statemenis)
Consolidated Statements of Retained Earnings m I Years Ended 1)c( ember 31. I I 1980 1979 1978 Rt rained Ear nings, lleginning of Year $6,417,530 S3,301,122 S1,313,173 Net liu ome 1,703.190 2,260,706 1,939,850 Total 8.120,720 7,363,128 6,273,023 De(ha i: Cash disidends dec laicd: Cumulatise pietei t ed sto( L: SW Series at an annual rate of S3.123 per shaic 83,281 83,131 87,386 M4 Sciies at ait aimual rate of 58.00 per shaie 191,000 197,000 200,000 Corninon sto( k at an annual rate of $2.60, S t.90 and S t.30 per shaic 1.313,921 863,161 683,017 Total 1)cdm iions 1,588,202 1,i17,398 970,603 Retained Eainings, End of Year ('.ote 3) S6,532,518 56,-l17,330 S3,301,122 ( l he an omp.nn ing noic%ne an miegial p.n of ilmse uaienwnt o Notes to Consolidated Financial Statements Note 1: Summary of Significa.. .ccounting Policies - ning ami end ofca( h y ear: 1980 - 3.199,1979 - 3.119 The Company is subjc(t to s egulation by the N! ass- and 1978-3.019. at husetts 1)cp.utment of Public Utilities (1)PU) wish r espet t to its rates and an ounting. The Company's Accounting for Income Taxes - For im ome tax pur-am ounting polit ics (onform with generally au cpted ynnes the Comp.my cu hales a portion of unbiiled fuel an ounting prim iples, as applied in the case of iegulated adjustment sesenue ami au onlingly provides delened public utilitics, aiu t aic in au ni dam e w it h t he au onnting inoime taxes payable in the suuceding year on sm h ic(guisements ofihe I)PU. A description of the Com- icsenue w hit h is carried as a ( urrent asset. pany's sienint ant au onnting guilit ies ibliow s. The Company has used an au clerated method of Principles of Consolidation -()n February 21,1978, deprec iation w hit h pr esently results in annual tax depie-the Company insested $20,000 in he Conunon Sim k of a (iation w hit h is in excess of lu u >L depreciation, and new wholly-ow ned subsidiary, Fitt hburg Energy 1)esel- dedm is currently (criain elements of t onstrm tion user-opment Company (FEl)CO), FEI)CO has insested in oil heads that an c capitaliicd Ihr lx x>L purgw nes. For e,u h of amt gas drilling projei ts, w hit h insestments bas e been these dif ferem es ilu Company prosides delcried in-re(onfed on the equity method. Allinter-uimpany items (ome taxes as appnned for rate making purinnes by the bas e Iren climinated in umsolidation. 1)PU. In addition, the Company has reconled deferred inu>me taxes related tu (crtain abandoned pn>perties Res enue Recognition -The Com pany ret onts unbilled w hich ai e t et ogniecd as tax losses at differing iimes. The f uel adjustment s esenue(nriently io piopcily amut h Coinpany, in 1979, began capitalizing certain mainte-icsenucs with related (osts Stu h unbilled resenue nam e o nts fiira generating unit, y et unuinued to dedu( t aggregated S I,691,820 S736,082 and S389,136 at De- thesc onts uirrently thr tax purgwnes. Deferred inc ome rember 31,1980,1979 and 1978, respettis ely. taxes base been punided Ihr this timing dilferem e, Depreciation - Annual pnnisions are determined on a The annualinvestment tax i redits pennitted Ihr addi- l group straight hne basis. Piosisions Ihr depretiation tions to the Company's utility pioperty are being amor-were equivalent io ihe Ibilow ing unuiu nite rates based on the aserage depra iable proper ty batain es at the begin.
17 tired to itu ome rateably mer the estimated produ< tise Nmeinber 27,1979,ihe DPU apinoscal the Company's lises ofihe ictated assets as alhmed by the DPU. Sm h icquest to amor tire approximately S633,000 mer a 36 delcirals for the years 1980,1979 and 1978 amount to nuinih peri <d The Company will request peimission S371,736, S308,687 and S292,137, s eslu tivJ) . lium ihe DPU io apply simikir neatment to any addi-tional < osts assmiated with tbese units. The Company has cleued to an ount 10: imestment tau icdits on non. utility pre,3 city inlditions, piiman . On Det embei 31,1980, Nonheast Utilities, the lead ictated to I EDCO, by t he " do+t hiungh" metlant. paitic ipant in the piolw> sed malear generating plants Under ibis mellual o edits are r eungniicd as a redia tion Alontague Units I azul 2, annoumed ihe serinination of of l'ederalinumie tax expense in the > car utiliicd. In the omstr,n tion of these units. The Company has re-1980,1979 amt 1978 thesc uedits amount to SI,613, quested permission f rom the DPU to amoitiec related
$7.607.md $ 10,380, icspeuively. < mis m er a lise-> car periml, elfeuiteJanuary 1,1981.
These pniperties hase been < lassified as onher deferred The additionalimestment tax < iedit permined under debits at De(ember 31,1980, pending the DPU's ap-the Compan A Tax Itediati< n Au Employees Stm k provalof the pro [wned auounting ticatment. On nenhip Plan (TR A ESOP) redin ed I cdcral lin ome taxes oayable by 1 US of ahe Company's qualified prop- The an.ounts to be amorti/cd firall piupcitics mer erty aJditions. The s esulting amounts are payable to the the next the > cars, assuming DPU i:pprovalof the the Til A ESOP. >caranuntitation of the Afontague Unns, areas fiillows: 1981 - S770,167:1982 - S678,392:1983-1983 - Allowance For Funds Used During Construction - An $ 117,383. allowance for lunds used during < omina tion ( Al UDC), a non-cash item,is inu luded in aimti m tion woi k in Other Deferred Debits-Other deferred debits are i progress. Th objeuise of Al UUC is to piesent the u>mpmed of the fiilkming: carnings that sould resuh in the absem e of c onstruuion piograms.cd ihe iciated finam ing icquir ements d uring the period at umstinuion. .Auurdingly Al UD" December 31, rapitali/cs the ont of debt and equity employca in gggo 3979 meeting these finaming acquirements, based ulwm a unnpmite rate applied to umstr uuion wo k in piogiess, Proper ty tax abatements -
$270.813 w hit h assumes that fimds used for < onsina tion wcic .\lontague Units $294,309 -
prmided by lun n owings, pielerted sto< k and unnmon Preliminary sun cy and equity.The annual raic ol approximately 119, I IG ami engineering unts 15,847 103,688 I l'i wcre used li>r ihe ycars 1980,1979, and 1978, Boiler nun ersion onts 51,854 - respe titely. 'l he equity fund tongwment of Al UDC Defened mairnename onts equah 9.19,3 9M and 7,19 cf oct int ome applicable t" unuinired limed quin Concaon Saxl. fi>r tla 3 cais of 1980,1979, ami 1978, generation) 180,454 193,192 t esper tis ely. 35,625 78,638 Alis ellaneous S616,331 Note,2: Deferred Debits Total ot her deferred debits $578,089 Unamortized Cost of Abandoned Properties-The unamoniecd unt of abandoned propertiesis beingamor- Note 3: Restriction on Retained Earnings- Under ihe tiicd at various rates as onleted by the DPU. During ihe most restiioise prmisions of the hulentures relating to ihi ec y car peiiod ending Det ember 31,1980,ihe li>llow- t he Comp.my's long-ter m debt, S2.339,179, S 1,321,106 ing es ents ou un ed: and S3,120,077 of retained earnings wcre available for the pay ment of cash disidends on Conunon Sun k at On O( t ober 18,1978.the Company tiled with the DPU Dec ember 31,1980,1979 atul 1978 respeuively. its piolwned accounting ticatment relatise to the Iw>ok abandonment ontered by ihe D1 U of a generating unit. Note 4: Redeemable Cumulative Preferred Stock-The
;~
w hic h t reatment w as approved by the DPU on Nm ember Cumularise Picferied Sim k.3%9 Sciics.is preferred 7,1978. As a iesuh, the Company connnem ed amortira- mer Common Sim L in voluntary liquid.uion at the tion of Ihis propeity in september,1978, actroauise to tedemption price in cifcu at the time of sm h soluntary January 21,1978. liquidation, aint in im oluntary liquidation at S 100 per share,Imth plus accrued dividends. Shares of the 3!W Series aic redeemable at the Company's option at On Nmember I,1979,iae Company began amortifing Ihe onts ofits im estment in the pro]meel Chailestown $102.36 per shaic on or before Alay 31,1981 and at Units I and 2 nm Icar generating plants.This abandon- S 101.28 thereafter. The Company is required to pur-ment was pictipitated by the annomacment m Ooober < hasc onJune i of cat h > car not less than -120 shaics, 9,1979 by the lead participant New Englano E!curic unless a lesser amount of shares is tendered, at S 100 per Sptem, to defer indefinitely ahe in-senice date and the shaie plus a< crued disidends. subsequently announced ter mination ofihis pn jet t. Oc
18
'I he Omnularise Pictened Snx L,8 l Sciics,is pic- 'I he c an angcinentulo not h nc rei mination daics, but ici red osci a :enunon Stoi k in sohmia y liquidation at are icsiewed annuall> lor t enewal. At 1)n ember 31, the r edemption ini< c in ellc< i at ihe time of sut h 1980 aint 1979, the imusedi nntion of the < icdit lines solonnu y lajui<lation .unt in iinolunia > liquiciation at out sianding w as 59,300,IHH6 aint S 1,230,000, irsin,-
S100 per sh.u c, both plus au ined disidend., : bates of tisch.The Compain has agiced to maintain < citain il e x'; Series are icdec'nah!c at the Company's option at ascrage amounis on deposit in ihese banks or pay < ciiain 510s.00 per shaic on or befme August 31,1983 amt at f ers in *icu ott om pensating balain es. (:ci tai i nt t hc lines diminishing picmiums iheicalier. ~l he Coinpany is ic- ol < icdit i cipiii c t hat u unpensating balam es he im irased quiicd to pmt base onJune I of cat h scai, not less than in t riation to usage. Com pensating balain e icquiirinents 730 shairs, nr.lcss a lesser amount of sh.u cs is tendcied, at 1)n ember 31,19X0 ami 1979 ucic appiosimately ai 5100 per shaic plus an i ucd disidemis. S770,000.u ul 5983,000, icspntiscly. I'm t hasn of it .lcrinable Piciciird Sun k duiing 1980, 1979 aml 1978 t onsisted ot the lollowing: Note 7: l'ederal Income Tax - l'nlet al im ome tas cxpense iu ompiised of the f ollowingininponents: D..dend m Series 1980 1979 1978
$ 12,000 S12,000 S12,000 Years Ended December 31, 3!/i M'i $75,000 S73,000 - 1980 1979 1978 1 he aggiegate amount of sinking linul icquiicments C " ' ' C "' C \ l * '"'c
'h "M"Ih'Mli'n b; in eat h ol ihr lisc yeais hillowing 1980 is S I 17,000 (1pci;u ing es penses $535.350 $ 937.816 S1.216,312 Note 5: 1.ong-term Debt - Detailu,I I.ong-ici m Debt at Non-operat ing 1)n emin i 31,1981) aint 197ti at e sin >w si In liin : iiucine (30,210) ( I t'3,736) (78,9111)
Ainistli/aiit niin! December 31, innntment tas 1980 1979 < i cdii (85,211) (89,019) pil,7titij j Twents-lisc scai notes, lh'i 419,926 713.061 1,073,ti27 d ue l'cIn nai > 1,198 i $ 3,110,000 5 3,183,000 Defriicd ias expense
.I.w ent y -lisc 3 car notes,9 %',,, i h.o gcd 6 rediinb:
due .\1.n < h 1, I993 6,8I6,000 6,900,000 Drici s ed imbilled I went) )cai notes, lori, duc . , 3 g, , gg ., g September I,1996 3,000,000 3,000,000 At a clet ated ias Twenty-lisc 3 car notes 10'i'l, dp ; ' ion 293,191 278,313 2X I,733 duc11.n 1,1999 3,710,000 3,X20,000 A b.u uloned Twent> > car notes,13H'i, ,g; gg.g gg) 3 g g ., y .gg.g duc September 1,2000 5,000,000 - ( N ihen ml
'lotal $21,690,000 S l 6,903.000 othei 63,1(i7 217,173 92,910
- 1. css: Installments duc Deletied mainic-within one s car 123,000 123,000 n.nu c i osts (6,-111) 83,303 -
$21,573,000 S 16,780,000 I C8' entage icpair Total I.ong-ici m Ilcid 29,083 19,919 37,I81 allow ain c 508,285 713,030 339,131 I he aggiegate amount of sinking knulicquirements Non.oper ating ior cat h of the lise >cais f ollowing 1980 ar e: 1981 - ex pense (21,995) I l.692 ti7,317
$ 123,000; 19x2 - 5389.000; I 983 - $398,000; 1981 - 183,290 739.722 106<l68 S3,366,000 ami 1983 - S333,000. 'l he Compain has satisfied S73,000 and $9,000 of the sinking Imul re- Tot al l'.s pe nse $P03,216 S1,501.783 S 1,182,093 quirements for thc 9M; Notes for 1981 and 1982, icspntiscly, Note 6: Credit arrangements - I'nder line of < icdit aiiangements for shou-ter m debt with four banks, the { l Comp.un ina) Iwo iou up to 511.200,000 0n sm h tri ms asihe Company aintihe banks may mntually igiec upon.
19 I he l'cder al iin ome tas .unnunts iiu luded in the c onditions the Comp.my has the rigt . m puu hase the Siaiement of I at nings diller iiom the amounts w hit h units at an independently appraised mar Let udue. I'nder icsuh tiom apphing the stat utoi> l'cderaliin ome tas the lcase, thc Comp.my has thc obligation to maintain the s aic to Net l'ai nings lwho e inu>me tax. I he a casons. e<lui[mient in gmni opciating c ondition and pay all tases u it h ic!ated ]wn enrage cfin is, ar e as slu m n Iwlow : and insuram e on said c<[uipment. Iliul the Company capitaliecd its t apitalleases at De-Years Ended December 31, < cinher 31,1980and 1979,tiie Awet and related I.iability 1980 1979 1978 w hit h wouhl base been in oided on the bal.un e sheets for the ( anup.my s uijntal leases wouhl has e been as Stat uion l'niciat ino nne tax rate 4tiG 16 9 18 4 fidh m s: Inunne tax cifa is of tiining ditlei cm es: December 31, Allim.uu e f or lumls 1980 1979 used duiing u nno ut tion ( I) A"ci $2,230,447 $2.'. 02.4% (see Noic I' (10) (3) 1.iability $2,603,114 $2,73 ,338 N!iu cilancmn (1) (1) (1) I; tin tis e l'edeial itu ome 11.ul t he Coin pany capitaliecd its nipital leases, depic-t iation and other iniciest ( harges wouhl hase im reased tax i.uc 359 10G 13G and operating expenses, ot her wouhl has e (dn reased) as fidh m s: Note 8: llegulatory Matters - The Conilun> s method of billing ami au onniing fiir resenne under its Iurl adjustment (1.mse in elin t f rom }muary I thiungh Years Ended December 31, Septemlwr 26,1974 lias l>ccri c hallengni befinic ilie DPU 1980 1979 1978 in the Anoines Generalot The Cimunonweahh of . . flass,u husettsl The in[uired monthly f ueliuljustment Deinnlanon $ 182,373 S 171,721 S 162,733
+
w bedule heictofmc Gled with the Di'U h.ul not been Odwr Intesest Changes $ 183,187 S 181,920 S 179,180 disputnlin the tegulator3 anthority.The poition of sm h O l wiating Expenses, Other $(327,877) S(307 193) St287,307) v Iucl .uljust ment ilause iesenues in onled 63 the Com-pans and t hallenged by the Anornes General aggiegate appmsimatch 5721,000. The Coml i.nn has sigoioush . I.h" C"* P"".F h"'"niered into a sale and leaseback detemled its pu u edurcs in pna cedings twii> e lic Dif, " " W " * " O " b. P7*M5#""""N"
< enter ex]w(ted to t ost approxnnately $2,700,000 and to ths nun ome of w hk h .n mucitam.
be completed and acady f.or ou upam y by the nu.ddle of Ehrnary 1981. The Company also has a <ununitment to The Compann hilling and au ounting f or iesenues under iurl adjusuncms based on a nts im urred a fier "'" "*' "i" f"'"i' * " "* P"" I '" " M4' " E"'" " PP'"'i' m.u ch- $ 130,000. I he u>mnntment data f or these two Septemlwr 26.197 I aie being made under a new f uel adjustment a lause w hit h took cif n t on September 27. "" "" W " , " ' "* i" 1 * ' h"
- i " i * "
- l#"'" '" * ' 4 minnent &t;ukd twlow.
197 I aiul are not being hallenged. The minimum commitments under all non-Note 9: Comm.itments cam eliable long-tenn leases in elfix t at Da c'alwr 31, 1980 are as follows: 1981 - S306,030;1982--S307,879; %u ' ase Obh,gatigms - by an os dam e w ith the guidch. nes 1983 - S726 192; 1981 - S711,621 : 1983 - $732,-l 10; of Statement of Imanual Au ounting Standards No.13 1986-1990-S3,130,376 aggregate fi>r the period; iwued in the I mant ial Auunnting Stamlards lloar d,the 1991-1993 - $3,603,138 aggiegate li>r the peiiod; Comp uky is div ioying pertinent inf ormation n egarding 1996-2000 - S3 t' 19306 wupw for the period; us(apitalleases. I he Secunnes and Ex(hange Comnus-
, 2001 "003 - S 1,119,283 a regate fier the periul.
sion rnpures, for rate-negulated enterprises, thw losure of the cita t on t he bal.un e shect aml on expenses if sm h Totai rental expense lier t he y cars ended Dn ember 31, leases had Iren capitali/cd, pending ihe resuh s ofits 1980,1979 and 1978 amounted to S 113,913 S 130,309 icsicw ofihe Statement's appikability to rate-regulated and S 128.289, i espn tis ely. enterpnses.
. Buildings- As a result of the c onsolidation of the
.l'he Company has a s.ignit.a ant twentpi.n e year lease Company's operations principalh in the new service w hit h began Al n,d I,1973 fora t ombustion turbineand a -
. . t enter, the Compauv has a(in civ' sought to disposc of the lu.pwfied nat ural ga , storage f.au h.ty. I he lease n.su bj.nt
, huihlings that w ere vacated.
~
to a ten y car renew al pei a nl at the optu m of the Company at an annual sentalot I l'iG of the aggregate f air market On Dn emlwr 2,1980, the Compant signed a Pun hase salue at the end of the initiallease term. Underiertain and Sale Agreement to sellits foimer ollice buihling for its appraised value of 590,000. This sale was umsum-mated on l'ebruary 20,1981.
20 ( Pension Plans 'I he Coinp.m> h.n in clict i iwo hunic<l January 1, pernion pl.mumyl irlaical I inyt Agicements to ptinicle gggg gg79 ictn enwnt annmoes foi paita ipanng emplosers at age
- 65. t he entire,unonm ol ihe.umualumnibution umici A< t uaiial picsent valuc ol the.u tuanalicquiicnwnh of the pl.un is Inn ne by the Au umul.ucil pl.m benetiis:
Coin p.m > . Vest cil $5,3fi3,350 S I,97ti,l o I Non-Vesicil I l 1,131 110,737
.I he (.nmpain siontohution to the plans <lming the s c.n s emicil 1)ciemhe: 31,1980,1979 aint 1978 $5,877181 S3.086,811 amomoal to 5333.913. 5319,323 ami S 197.077, icspn -
tiscl> , w hii h iin imicuimoiti/ation of prio: sen ic e o nt s Net assetsasailable foi henclih $1,382,657 S t 007.838 osci a priitul ot thiity >cais. The Companis iwila y n to imalihe pension < ost au t ucil.The f ollowing.ublitional I he weightnl as crage assumnt rate of res m u usalin inloimation is piesental as of the most in en henclit <letci mining the at tuarial piesent s alue of an umulatal mha ination <tates: plan benelia was Yi for innh 1980 aint PG9. Joint On nership Units ami Construction - The Compans is par ti< ipating on a icn.nu y-in-< onnnon basis uith othei New 1: ngl.nnt utilitics in the(onstim rion amt ow neiship of six generating units. New liasen liailor ami m man Unii # I, Inn h oil-tiini stations, base been in i ommen ial operation sim e August 1975 atul 1)n emiwr 1978, icspn inch . ~1 he icmaining lour mu lcar unin air pl.nnini or uncler u mstrm tion. 1)ciails ictating to the s avious unin aic as f ollow s: company's $ hare in Thouunds of shellars Proportionate Share of A mount of A mount Total Tota: Utinity Fnpended Estimated Ow nership Plant in Ars umulated thruugh cost of joint Om nership Units heate 'i mm Scr ice Depreciation 12 S t M0 construction Scabiook Units # I & #2 New Ilainpshiie 0.1710 3.9 $- S- 5" 883 S 8,383
.\lillstone Unit #3 Connn tit ut 0.217 2.5 - -
".317 8.7 11 Pilgiim Unit #2 Niawu husett 0.19 2.2 - -
996 6,168 mman Unit # I Niame 0.1822 1.1 107 33 Nrw Ilasen Ilas hor (:onna iit ui 1.3 20.1 ti.937 i,060 29.8 S7,3 I I S1,093 S6.19ti $23,292 ()perating expenses im Imini in the Consoli<latal ()n Januai y 26.1979, t he u mnnon sharehobici s ap-5taicmenh of 1:ainings ami pioinnionate amounk piosal the autuisition of an a<hlitional 0.133329 ou n.
< haigni to spn ilii operating ex]wnses on e as iollow s: ciship intriest in ca(h of the Seahtook Unia lium The Connn tic ut I.ight aml Pow cr Company (CI A P). On Thooonas of in.nars N1an h 23.1980, t he t onunon shaichohler s approsol t he Pm '"'*K' '" auluisition of an a<hlitional 0.26087% ow nenhip in ca< h iia'r of the Scainook Unin fnun Publi< Senic e Coinpany of w3 m.n roia ,
New Ilampshiie (PSNII). The puu hase of la ah a<hli-Operating Expense, tionaliniciesh,icpresenting an aihlitional 16 AlW, was Other S 31 S 311 99 appiosal h> the l)PU on oi tober 31,1980 aml has twen leuci Usnt in cu hulnl is om the in ha mation pr esental beicin. The Eln tiit al puu base f rom CI A P inricasing the Companfs ou n-Generation 83 1,293 89 ership interest in the Scabiook Units w as unnununatal
.\laint enain c -1 161 22 onJanuary 30.1981.The puu hase f rom PSNII inn icas-Incal Pro [wi ty ing the Companp ounciship iniciest in the Scabiook Tax 6 209 17 Units will tw phascalin user the thincen month peiio<l,
( >ther Taxes - 7 3 Fehinary 1"81 tinough Fehinar y 1982. Total Ol wiating Tk Comm qm h m Hmm thmN ofin paniti-Expenses S 12_e S1,986 ption in du miin initially thniugh slusit-tm m lun n>w-ings. At the appiopiiaic times, shoit-term lunionings The Company estiinaics umstrmiion icquirements will be unneitalinto primanent financing. im huling Al'UI)C icialise to ihese units uill be appioxi-matelv 5 l 1,203,200 iluring the next lise s car perio<l ciuling 1)n emiwr 31,1983.
'll Note 10: Segment Information -In au oi<l nue with Finainial Anonnting Stamlai<l No. I 1, the following in h>i mation is in esenteil relatis c io the gas aml eic< tiic operations of the Company:
Electric Operations 1980 1979 1978 ()perating i es en nes $ 28,525,028 S 21.173,2tHi S 21.137,342 ()perating im ome la foie innorne axes $ 2,527,335 S 3,910,716 S 3,631,8tui identiliable awets as of 1)ct ember 3 i $ 32,817,347 S 32,160,207 S 30,721,323
!)c pret iation $ 976,148 $ 933,001 S 932,260 Const rm tion expemlitures $ 1,620,827 $ 1,811,331 $ 2.339,819 Gas Operations 1980 1979 1978
( )perating i even ucs $ 13,785,001 S 9,786,183 S 7,919,99I ()perating inn ome befoie int ome taxes $ 1,595,959 S 1.333,870 S l.183,032 hiemiliable awets as of 1)cccmber 31 $ 12,919,057 $ 11.097,002 S 8,987.22I i)cpic(iation $ 354,841 S 281,688 S 219,327
$ 2,211,948 S 1,129,019 738,639 Const i m tion expemlit nres S_
l l Total Company 1980 1979 1978 Operating res enues $ 42,310,029 $ 31,261,181 S 29,077,333 ()perating im oine Ix loic iin oine taxes $ 4,123,294 S 3,266,386 S 1,839,928 Ini ome tases S (1,076,114) S (1,762,-168) S (1,607,717) Non-operating iin oine 156,106 88,711 201,991 Net iru ome dcou< tions (1,500,096) (1,332,126) (1,171,332) Net income $ 1,703,190 S 2.260,706 S 1,939,830 hientifiable awets as ol I)ct ember 31 $ 45,766,401 S 13,337,209 5 39,711,317 L nallm ate <l awets. primarily working rapital $ 9,753,323 $ 7,236,086 S 1,313,180 Total awets as of I)ct ember 31 $ 55,519,727 S 30,813,293 S I1,225,027
$ 1,330,989 S 1,236,6:d S 1,181,787 1)cprec iation _
$ 3,832,775 S 3,270,600 S 3.098,308 Consu m ilon expcialit uies Expenses used to iletci mine operating iin ome before tau s are ( harge<l <lirec tly to either segment or are allocated in au orilain e with lin tors (ontained in cost of sers it e snulies w hic h w erc included in rate applications approsed by the 1)Pl? Assets allocated to ca( h segment aic based upon specilic identification of such assets
{ } prosided by Company rec ords. Assets not so identilied represent primarily won king capitalitems.
22 I Note l l: Property Tax Appeal - in ()( tober lil80. t hc City ol l itt hbui g (City ) int icasalits total pr opci ty tax les ) by oser 20N anilimpicinental t lassilit ation forits lii81 fiscal year.11 an 3 aniciulinent to the N1awac huscits (:onstitution.< lawilic ation authori/cs a (its to t lawily ical piopcity ao onlir,g to its use ii..o no t mic than loui
< lasses an<lio awcw.iaic.unt tax sui h propenis <lilIciently in iheilasses so established but piopoitionatch within t he same < law. The elin i of t he itu r easnt tax les y amt ihe innplementation of t lassilit ation im icasal by 5tiq on an annual basis the amount of the propeiiv taxes billc<l to ihe Coinpany by the City < onunem ingJ uly 1, 1188 0 i A gioup of imiustiial amlionuncit ial taxpa3cis within the City tonunenic<liouit at tion against the Niawat husens Commiwionci ol' Resenue (Conuniwionci) ami the City on tbice iwucs. ()nJanuary 2ti.11881,ihe Sulfolk Supciior Conti(Coutt)issual a Alcmorandum ol'!)nision whh h suppinint ihe iaspayc s on tuo of the l t hice issues. In t hat 1)n ision, supciior Cour tj ustit c Young lomul t hat t he City inust use Iice < ash as ailable at t he emi of I'iu al P.isoio inha e ihe l'iv al 198I tax iate amt ihat ihe iemaining ias bills ior icalaint pei sonal propeit 3 clue <lm ing i in al 1981 must be inlm e<t io n elln ihe as ailable in cc < ash ol S 1,tilo.330. The Coui t f urt her cln laic<l "that t he Conunissionci s cln ision to pennit tau lawilication in l'ist hbui g ion bit rai) ami thrich n c ol no toire ami etin t" ~I he dn ision huiber statal that "imihet npiitable outer, ..di anait :i.- rev iipt of an appell.uc (outi" subsopient to ihe Supciio Coun JiulgeN dn ision,ihe Alaw.u husetts Supicmej mlit ial Cour: u heduled ihe i taiter loi he.uing Alau h 2. 1188 1.
As a result of ihe Couit'sJanuary 2ti 111811)nision.she Compi m has inhued piopcity tax expense for the priiiulj uh -lin embcr.11180 by Sti1.813 to a ctin i ihe cfIn i of asaitalk iirc < ash being used to inlm e the tax rate.
'I his inlm tion in expense is apihalent to ti.5e ol cai nings per ascrage c onunon sbaic. The Company has not inlm nl 19S0 piopeii3 tax expense to iclln i t he Cout tN inn ali<lation ot < l iwilit ation siin e iheJiulgcN 1)n ision did not state how the Cit) woubt irm> ne the cifn i otilassification in l'iv al 1981. Ilowcser, managernero estimmes propcity tax expense c onhl be !m ther initu ni by as nun h as S222.000 or the opiivalent of 22e in carnings per asciage t onunon sh.uc.
Note 12: Common 5tock-()nj unc 1.1980 thc Company sohl 100.000 sh.u cs oli ommon stm k loi S23 per shar e. Net In on nis of 52.092.09 i weic usal to rnim e shoit-tenn honowings im m int in c onnn tion wiih ihe Coinpany N ongoing (onsit m tion pr ogram. I he Compan) also sohl an additional 3.002 shairs of (onunon stin k at $22.375 per shat e io ahe Company N Tax Reduttion At t l'.mployer Sthler s of FITCllill'RG GAS ANI) El.ECTRIC 1.lGilT CONIPANY: We has e cxamineti t he < onsoli<latc<l halani c slwets ol Fin hhu rg Gas an<l Ele ( t rie l.ight Coml>any aml Subsieliary as of !)ct ember 31, I!)SO amt 11#7!) amt the t elateil(onsolittatc<l statements of car nings, retaineil earnings aiul t hanges in finam id gw >sition fi>r eat h of t he thr ec ycars in thc l>ct io<l entic<l l)ct ember 31. l!)SO. Ourexaminations weie ma<le in an onianic with generally au cl>tc<l amliting stamiants, and auontingly imlueled sut h tests of the an ounting s c< onis aint sin h ot her aut!..ing [>na c< lures as w e c onsi<lered ne< essary in the t irannstam es. As dist ussed in Note 8 to ihe finan(ial statements, the Com;>any's n.cthod of billing aint au ounting for res enues muler its Iucl adjust ment < lause in elfet i fromJanuary I thrungh Sc[>tember"6, lil7 I has been ( hallenged by he At toi ncy Generat ol The Conunonw eah h of .\ lassa ( huset ts. The Cominany helies es its met hods arc u>rret t arul has sigorously defeinicil its ]>na eduies,init ihe ultimate outunne is usucriain ami no ;>rmision fi>r any liability that may resuh has been made in tiie finamial statements. In our ol> inion subjet t io the ef fet t ol sm h adjusunents,if any,as might have heen iequired had the outunne of the inatter disc ussed abmc been know n, the financial statements icferred to ab<ne inesent fairly the consolidated finainial [>osition of Iin hhun g Gas aml Electric 1.ight Com[ian) ami Subsidiary at 1)ct ember 31, I!)80 and I!)7!i and the u msolidated icsuhs ol their oj>crations and c hany<.s in t heir linain ial lu >sition for cat h of the thice y cars in the [>criod emled I)cecmher 31, !!)SO, in (oniormity with generally au el>ied au ounting girim ijiles a1);> lied on a unnsistent basis. Al.EN A NI)ER GRA NT & CONil'ANY limton. .\ lassa ( h usetts February 'i, !!)81 m
-/
1
Management's Discussion and Analysis of Financial Condition anci Results of Operations ei Operating Results i I T.I. I'SEI) I N 1.I.1 CTRIC G1 NI:R A i 1()N in- ! Net inonne ela lii c<l aiming 1980 ln S337.3lti t.3';). 1.at nings pc au t age aimnuin sh.n c f or 1980 wcie < icawil 51.313.320 ( 13'i)in 1980 clue to t he rw alation in { l the unsuit luct inni to genciate a leselof liWII lighth 52.78.on a 1.n get immin i ol shar es outstainting, as l<mei ih.m that of 1979. (:ocin 1979 :ose in SI.212.869 uimp.n ni to S 1.3 I in 1979. 'l hh cln icer is piimarih (38'; ) <lue to t he same iceons as in 1980
<!oc to inhu ni liiin saln umwil in the ro momit in n-sion. h9her iniciest a nts ain f a lan ge im icec in pr opci t y G AS I'l'R(:ll ASl{l) ll)R Ri{S Al.l. in. icawilin taxes. Ih m nings pei sh.n e im r casal h) ! 8'i os ci ihe 5:1.:521.7:12 (37'i)in 1980inci 1979 aint In 5;. 13.91l 1978 lesel prim.nilt alue to ihe abatement of piopciis (:13';)in 1979 ilne in highei pii< es a har gni by ihe iasn. Comp.un's pipeline supplici, t he iin ireing imit i ost of the C< unpain N supplemental gees ami an im ic.nc ol 1:1.l:( ; l'RIC ( )l'l:R A'I I NG R1Xl{ Nl'l;S inn icasnt 330.713 (2 Pi)in NICl2 sales in 1980, an inn icase of 51.019.732 ( l 7'; ) in 1980. <lespite a clo i cer (W; ) in 280.723 (l l';)in NICl2 sales in 1979.
Lihm att-Inius (hWil) sales. 'l he nei rif n i on icsenues we primarily ausilmtahic to an im icase of appiosi- ()Pl.R A l~l NG IN PE NSI:S.()I til R h.ncim icasal by mate!) $ 1. Iti:1.000 in lucl < osh im genciation aint ence gs S 1:19.8:12 (9'i ) in 1980 os ci 1979 piim ipally <lue to an a ina of pun t hasal lwiwei, w hit h .o e pawnl on to t us- .nusunting.nljustment inquiiniin the l'alcial Encig) tomci s t hr ough t br operation of a u nt ol hici.nljusonent Regulatoi) Commiwion. highet tice tii.nniing unts.amt ilause: .nul a <ln icase in iiniusisial ules amomuing io opciatii.g expenwwso< iatal uith ahe < oniinuation of approximaicl3 5109.000 clue to ihe etin is ol lhe in es- the ge nuncision piogi.un. Ino cars in 197thit
, ion. I in u it ()pciating Res ennes ini scam ' S:1:117.731 5299.1 13 0V! ) ai c asso< iatal w it h icasc obligatinin. hou r (lWl)in 1979 <lespite a slight iln icase in KWII sales. w age i.ucs, iin ic.nni pernion .unt insuiaiu e u nas ain] 'I his iin ie.nc in icsenues w as piim.n ily attiihutahic io.m other unt im icases that ictln t thc omtinuing elin h of im icaw of appiosimatel S:5.02 3 l JHHiin lucl unk f or inflation.
generation .unt encigs una of pmt hasol jamer, w hi< h are passni on to t ustomeia, tin ough the opermion ol'the NI AIN'l l{N ANCI: 1:N PI NSI S h.nc iiwn osci ihe lei alw ne mentionni < lause . mil to t he nei cifn i of awo ws cial y cat silue in highci w age iates amt ihc o miinuing i.n tot s: the full ycar clin i of the iate int icase approsol ciln is of inflation. (): tohci T .1978 :esulting in .m ini irasc ot appiosimatch 521;i.000; . mil a stiike ihat haital pio<hn tion by one of A Nt( )R l'l/ATi()N ()l' Ct >ST ()l' AII A NI)()NI:1) l l the Compan>N m.ijos imlnstiiah ustomeis s heichy lowei- PR( >PI'R l'IES ino cent by S iti7.071 (23!;)in 1980 ilue ing ihe Omnpany N i cs enues In 530.000 to ihe firsi t ull s carn citn of the amoitiration of (:h.n Icstou n l'nih No. I amt No. 2. I he inn icaw of s G A5()PER ATING RI AT.N t!ES iin icealS:4.998.81 ti Stil.11 I (10'i) in 1979 waulue to the fir st f ull ye.u N ( ll'i ) in 1980. piim.n ily < hic to ihe ciln i ot f ou r clini ofIhe amorti/ation of one of the(.ompany . f.u ion s: an iin icasc ot appiosimatch- 52.:ll:5,000 in t he genciating unin. Gener.uing t' nit No.6.aini two months
< osi of pun hasni ge w hi< h is paswil on to t ustomcis amoiti/ation of Chailestou n linib No. I aml No. 2. 'l he iht ough t he opciation of a < ost of gas a<ljustment < lause; inn icee of S 122,372 (2 I l';)in 1978 was clue to the an im t eaw of approsimately $618.000 in oil-soirm innuncin ement of amoitiration of I' nit No.6.
sales: an im r easc ot 191.331 NIC F in inicii n piihle sales icsuhing in an appiosimate int icer of $316,000; amt Al i.()W AN(:l; l'()R ()TIIER ANI) 11()RR()W1.1) highc firin ge ules. <lue to the man Leting piogram, of Fl >S l'SEI)I)l' RING (:()NS'I Rl'CTit )N he gener. 2 I ti.920 N1( :llicsuhinginanim acaseof alwmt S 139.700. alh itu icawil siin c 1976 clue to ahe Compan> N u miinun t Ge ()perating Resenues iin icasal 51.866.19 tu l!l) in iinesti icnt in jointly-ow nni cin tiii genciating f ac ilitics 1979 piimatik <lue to t he net elin i of hice lai tois: an uinici < onsti m tion. In aihlition, the im icaw in iniciest itu reaw of 391.289 Nt(:F in inten upiihic sales icsuhing raics i.e h.nl a signific ant imp.a t on these aunmnh. in an im irase of appimiinately S 1.279.000, ihe in.
< icawil unt of pun hawil gas a his h is paswel on to FI I)ER Al. INC() Nil: ANI) STA'l F. FRANCIIISI: < ustomer s ihi ough t he oper ation of i he ahi n e mentional TAN lim i natioin a r c <lue pr ima r ily io < ha nges in iaxable < l.mse icsuhing in an iru icec of apinosimarch im ome. I alcral inoime ias in 1979 iciln a a inha tion 5912.000; ami a <ln icaw in ol f-sutem ules ut'appiosi. in t he Fe<leralias rates.1)clen nlim ome taxes in< icasal mately S I 10.000 < onsi<lerably in 1979 hom 1978 piian ipally <lue to the twsol abamlonment of Ihe propowil ma lear genciating El.EC'l RICITY Pl'RCll ASEI) FOR Rl:SAI.E in. plants. Chailestow n t' nits No. l ainl No. 2.ami t he majoi oceal S3.013.113 (29'!)in 1980iner 1979, anil icpair of ihe Compann ge on hine. In 1980 <telenal S 1.932.138(2:Pl lin 197thner 1978.~1 he 1980 amt 1979 iases <in icent heraine the aicoiti/aiion at <lelen nt im icers iciln i an in< icase in t he per unit enci g3 unt of taxes puni<lni on picsininb ahaiutonal unin est enini appimimarcl> l .le (33ti).un! .7c (27!i). icspn tisely. ihat elef et ic<l on < in icut ; hamlomnents (N!ontague l }
1978 cspenws h.nlim icaw<l primaril> < luc tu a gicater l!nih No.1.unt No. 2) ai. s icsersalof the timing icliam e on cln isit ity pun hent h om of her utilitics. <litIciciu e at ising h om ihe uw ot <lil fes cut Iw w >L ami tas meihmis in piini< ling f or mn olicoible an ounts.
25 L I A )C AI. PROPERTY TANES IN 1980 inocased by licumsc ol o* ruimmitment to the Scabnxik Units No. I I S2ti3.703 (195;)mei 1979 piiinipally <lue toihe in- I and No. 2 aiul oil.cr jointly -<m ned nut Icar generating (icased po,pcity tax lesy of mer 20'i in the City of plants, the Company has linerasted a (ash c onsina tion Fin hburg and d ue io iax (lassific ation, w hi( h shilis the budget of S ! I,782,300 lier 1981 oi w hit h S I 1,639.000 is pro [>cn> tas bmden to the industrialand (ommenial our invest ment in the jointly-< m ned ma lear plants (see pioper ty ou nets h om ihe iesidential property ow ners. Note 9 to the Consolidated Finant ial Statements fi>r The 1979 dco casc ol S331,393 (209 ) from 1978 is int iher detaih). Our total cash u munit ment tow ani t hese piiin ipally due to a propeity tax settlement agreed to by units is estimated to be approximately S30.000.000, ex-the City in ( h tober 1979. I he Company in 1979 :n cis ed duding AFUI)C. abatements with a value of $731.631, of w hit h S211.076 peitained to the 1978 peiiod.~1 bcse abatemems in- The payment at maturity of S3,011,000 of the Com-( reased 1979 nct im ome by S376,178 ors.83 o1 carnings pany's 1%9 kmg-term Note willbe madein 1981.Thisis per u munon share.The Company antit ipates that f uture ahe only inajor long-term Note redemption n> ming due lescis of propeity tax expense will(ontinue to t ella t the dining the next fise years. Redemptions of other long-hmer awessui saluation resuhing innn this settlement. icon Notes will be made to satisfy sescral at.nual sini,ing The 1078 im icase of S 163.112 (l I 9 )mer 1977 was due fund requit ements dusing ihis penod. to ihe auguisition of the eintric faiilities pun based on June 1.1977 isom New England P<mer Company. When internally generated fumis are not available, t he Company Ibliow s a polit y of !wrrowing on a shor t-term NON-OPER ATING INCO.\lE, OTIIER increased by basis to meet its capital icip.irements, and at the ap;n n-S 19,13 I (178% ) in 1980 mer 1979 due to higher inteiest piiate time,(oin cris its sh<.rt-term indebiedness into iiu onne fr om icceivables a nd d ue to a low er loss sustained senior (apital.The sin and timingofsut h finamings will by t he Company's subsidiary. The decrease in 1979 from depend on des eloinnent s in t he securit y markets and t he 1978 o1 S i i 1.023 (133!7 ) is dne to a loss sustained by the ability to meet finaming onenants. Com pany's subsidiary and to t he n ed m ed interest income on ( onunen iat aml irulusn ial au onnts i n civable. In 1980. the Company suu cssfully issued 100,000 shares of Common Sto( k onJune 1.1980 at a pii(c of ()TIIER I NTEREST Cll ARGES im reased by $23.00 per share and issued 3.002 shares in o mnn tion with the Company's Employee Sto( L Ow nership Plan on
} S219,186(679)in 1980 and by S91,737 (399)in 1979 Nm ember 12,1980 at S22.373 per shaic.The Company
( elue to im reased interest expenses related to short-term borrowings cepaired to finance the Company % umstnn- aho pt ivately plu ed on ( h tober 30, I"80 S3.000,000 of tion piogram aini to a higherleselof aserage daily ~ I3h!i twenty ) car notes duc 2000. The Company's shm t-tenn Imrrowings. Ascrage daily bank Imrrowings presinus finant ing was in September 1976 w hen it issued w e rc S3.066.700, S2ci l l,100 and S I,191,700 for the S3.000,000 0f l09 Notes due 1996.The Company's new y ears 1980,1979 and 1978, respn tiscly. Ascrage daily servi ( c ( enter, u nst ing approximately S2,700,000. is interest rates on these horrowings on an annual basis being funded through a sale aml leasebat L arrangement were 11.19.13.09 and 8.69 for each of the scars 1980, Ibraninitiahermof 22 cars.TheCompany 3 hasa 233car lease on a u>mbustion turbine amiliquefied natural gas 1979 aml 1978, respn tisely. storage fa< ility, u hit h umnnem ed in 1973. 'l he Com-Financial Condition pany leases other equipment im luding its new uimputer Capital Expemlitures in 1980 wcre up by 175 mer 1979 sy st em. primarily due to the gas t omersion program ami the umiinued im estment injointly -ow ned generating it is sital to the interest s of bot h the Company's shareholders a nd ( ustomers that inu >me fr om operations pla n t s. be adequate to generate and finam e t he capital expendi-On ( h tober 30.1980, the Company rn eis ed approval tures na cwary to meet its senit e icquiicments.To fiom the 1)cpaitment of Public Utilities to pun base a(hics c a satistiu tory fesel of carninp. the Company is additional shaies in the malear generating plants, Sea- monitoring its finamial situation very closely to deter-bnmk Units No. I and No. 2, bringing the Company's mine the timing and the amount of any futme rate poition thereof to approximately 20.\ lW or .863199. ings. l t U
Selected Financial Data s l Statements of Earnings (000's) 1980 1979 1978 1977 1976 { } ()l> crating Resennes: Elc( t ric $28,525 S21,175 S21,l a2 S19,061 S iti,601 Gas 13,785 9,786 ,,920 6,861 5,698 Total ()i> crating Resenues 42,310 31,261 29,078 23,922 22,299 ()l> crating l{xl>cuses: ()l>ciation.other aini niairuena ,(e 6,602 6,066 a,a68 3,326 1,861 Elc< t ric ity imit based lier irsale 13,516 10,-170 8,538 8,210 6,390 $ l'uct used in elet tric generation 4,917 3,102 2,139 2,083 1,869 Gas l>uit hatt tier resale 9,172 5,831 1,333 3,709 2,986 1)cin ct iation 1,331 1,237 1,182 1,091 933 Anioiti/ation of tost ol~ abandoned l>toj>ci ties 821 ba, a94i 173 116 1 cdct al int ome tax 535 938 1,2th a62 7ti2
!)cleri cd inoime tases 565 781 371 170 238 Ainoitiration of insestnient tax riedit (83) (89) (62) (52) (19)
Smte train hise tax 61 112 81 81 106 lan ali uolicity tax -t urient 1,626 1.362 1,601 1,529 1,381
- aliatement of [>rior year -
(2Il) - - - ()t her taxes 199 191 167 liin i13 Total ( )l> crating I'.xl>cnses 39,263 30.757 23,813 23,378 19,811 ()l> crating lin ome 3,047 3,301 3.233 2,31l 2,158 Non ol>ciating linome: Allowaiu e lier f unds used din ing < onst rm tion - - - - 13a Allouan< c lier other f unds used duiing t onsti m tion 135 116 118 36 - 9 ()t her (net ol itu ome taxes) 21 (27) 83 76 63 Total Non-oj> crating im ome 156 89 201 I l '. 198 Gr oss lin ome 3,203 3,593 3,13 1 2,636 .,636 Im ome l)cdn< tions (Net) 1,500 1,332 1,17 1 1, 131i 1,373 Net imome 1,703 2,261 1,tHi0 1,200 1,083 l'icl' erred Sto< L I)isiden l Requirements 274 28" "88 290 .!91 Net liu ome Available fier Conunon Stin k $ 1,429 S i,979 S I,672 S 910 S 792 Common Stock I)ata Shares of Connnon Stin k: Year ciul (000\) 558 133 133 133 135 A s crage (000's) 513 -133 133 153 133 Eat nings 1>cr Ascrage Connnon Share ( )utstanding $2.78 $ l.3 i S3.67 S2.00 S1,71 1)isidesuls l)c(laicd l>cr Connnon Shaic $2.60 S t.90 S t .30 $1.11 S1,063 l l m_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _
l 1 1 27 f'IT B;1ance Sheet Data (000's) 1980 1979 1978 1977 1976 Utility Plant (at < ost) $51,220 $17,111 SI1,16i S I 1,100 $39.829 Ac cumulated Depreciation $10,899 S 9,850 S 9,194 $ 9,020 $ 7,125 Total Assets $55,520 $30,813 S i l.225 $42,135 S39,271 Capitalizas n an.1 Short-terin Notes: Corninon sto< L equity $14,754 S12,513 S11,130 $ 10,110 $ 10,183 Redeemable pielerred sto(L equity $ 3,954 S 1,071 S 1,188 $ 1,230 $ 1,272 long-terin debt $21,573 S16,780 S16,978 $ 17,176 $ 17,291 Short-term notes payable $ I,700 S 3.120 S 970 S 2,500 $ 300 Other Financial Data long-term Debt aml Redeemable Pref erred Sto( L (000's) $25,527 $20,851 $21,166 S21,106 $21,566 Ratio of Eainings to Fixed Charges (SEC .\let hod) 2.15 2.93 2.8" " " " " "5 Electric Statistics Sales -Thousamis of KW H 370,946 392,691 398.511 319,519 309.237 Electric Customers - Year Eml 22.339 21,711 21,308 21,27" "I,023 Aserage Annual KWII Sales per Residential Customer 4,844 5,033 5,073 5.019 5,140 Ascrage Resenue per Ilundred KWil- Residential $9.07 S7.79 $6.91 S6.60 S6.45 G:s Statistics r T Sales-Thousands of.\lCF 2,894 2,3 13 2,06" ",011 1,970 (/ Gas Customers - Year End 14,280 13,693 13,069 12,927 12,832 Average Annual Cubie Feet Sales per Residential Customer 97,013 86,131 92,076 87,233 91,233 Ascrage Revenue per .\lCF-Residential $5.25 S1.62 S1.03 S3.56 S3.08 Quarterly Financial Data Summarized quarterly financial data for 1980 and 1979is as follows: Three Months Ended
.\tarch 31 June 30 Sept. 30 Dec. 31 1980 1979 1980 1979 1980 1979 1980 1979 Total operating revenues $13,540,390 $9,262,880 $8,883,483 S7,903,938 $8,560,833 $7,790,297 $11,325,323 $9,301,316 Operating income $ 1,100,570 $ 912,981 $ 629,386 S 689,317 $ 515,532 S 667,486 $ 801,692 $1,201,131 Net income $ 737,456 S 654,713 $ 277,931 S 121,515 $ 269,015 $ 319,478 $ 418,788 5 861,970 Earnings per share $ 1.47 $ 1.28 $.43 S.78 $,36 S.55 $.63 S t .7S Net income for the quarter ended December 31,1979 has been increased by $376,178 or S.83 of carnings per
) conunon share resulting from abatements of real estate taxes.
u.l
28 I I Iloard of Directors Officers Armual Meeting
'I he animal n ecting of ammion t* Philil> 11. liraillev Char les 11. Tc* mer 11 shaichohlers is s( heilute<l to he hehl Bnident .\lanager, Xolthea st, oflB.11 Chainnan ofthe Boariloj 1) ira tors and at 'l he Vir st NationalILmk of \\os-Gnparation. Ilaltham. .\lau. ChiefEvciatii e Offia n of the Compan y. " ~
son, l00 Ve<leval Sti cet, l\oston.
.\ lassa < husetts,in the Au(litorium Ri< haul 1,. liiit klev iIowant W Esin s, Jr. on the First I'loor.on Tuesday, lamyr; partner in the'laicjinn ofBrie kler, Pini<!a:t oftl.e Gunfi any." hIA" h 2I I98I'd' IU;30 A \l-Sears & Gde, Boston, .\fass.; Dira tur of 3ubsidiarr. Frank 1 Chihls Transfer of Stock , <
l ic e finident and 7)ea,urer ofth, Gun _ l he Comp Ilowant W Esirs, Jr.
'I he Virst N,m[s'l ranst'er ational llank Agent is of lloston, paqr; fire Prnident and 7)ea3ura uf3uh_
Prnident ofthe Ganflanr; Dirntor and sidiarr; i ice Pinident and lieasur. r qf I10 I1"2 U II I\"""' \Id** " h"' Pinident ofsubsidiarr. Concord Eintric Companr, Gmu ord, XJL, 'C"' 02 I U2-and Euta & Hampton Ein tric Gunpany, Trustee
- john Graclo, Jr. Evta,X.H.
i ue Pinident of Litton Industiin, Inc., 'I he Viisi National ILmL ol'llosion, Iit<hburg .\tais. (a ditau/iedindustrr), Char les T. Ellis I!O I\"X IM .G,150ston. .\!awa,( hu- I and ChiefErwutiie ofits Papa, Printing li,e Pinident ofthe Companr; Dira tor 'e"* U2 I U'. I'Y"W W"ICT "" andIhnrn Group. ' and li< e Pinident ofsubsidiarr; Senior lite tunessusenng thef,oca otes nany s N.hn-finident ofBar State Gas CJmpani, due .\lan h I,199a aadl.\tay 1,
~
Thomas W. Shei man Canton.1/au. 1999 I c'!'C('i'CIF Dira tor, Eucutit e Ii<e Prnident and lieasurn ofBar State Gas Gnnpany, David N. Yoote Canton, .\ fan.; Dirn tor ofsubsidiary. Ii< e Pu>ident ofthe Gunpanr; lin e finident ofsubsidiarr. This i cl>oi t, iin huling t he Iinan-tRobert V. Shupe (ial statements < ontained herein, is Pinident ofB. L. Gourier Co., Inc., Echsant D. .\!cNenrie suhmitteil h >r the general ini'oi ma-11rileder, .\lan. (distributors ofheating. air .tnistant Treasurerefthe Companr;.1uist- tion of the sharehohlers of'the a onditioning and u ater heating equipment). ant lirastaa ofsub sidiarr; .1 nistant Company as sm h, amt is not in-7)easura of Coru ord Ela tric Compan r, tenuled to iiuluce, or f~or use in om-
*Chas les 11. Tennev II Ona ord, XJL, and Evter & He npton nettion with, an l ).
Chairman ofthe Boardof Diralun and Elatric Ganpany, Evta XJL of'any set un itles.y sale or puu hase ChiefEvcutiie Officer ofthe Compartr; Dirn tor, Chainnan of the Board ofihra- Angela 1: CuiIson fors and ChiefEv<nti;e Offi<er ofsubsidi- Cink of the Company; Sa retarr ofsubsidi-arr; Dira tor, Chairman of the Bmudof' art; Cink ofBar State Gas Company, Directon and ChiefEtnuti;e Ojfu n of Canton, .\1.as.; Santarr ofthe Board of Bar State Gas Gnnpany, Canton, .\! ass., Dirn tors of Concord Ela tric Gompan y, q Gma urd Ein tric Con pan v, Gnuvid, NJL, Gmcord, NJL, and Evta & Hampton andEvta & Hampton L!ntric Gunpanr. Ein tric Companr, Evta, X1L Evta, NJL William D. .\la(Gillivrav tRoheit L Ware .inistant Cink ofthe Gunperr; .1niatant lis;<ya; partr.,r in the faicfinn ofiIare & Sa retarr ofsubsidiarr; .1nis: ant Cink of 11are Fit <hburg. .\ lass. Bar State Gas Gnnpany, Canton. .\lau. i > m ,. ,. _ _ _ . .,m, _ _ _ , _ _.,-._ . _ . . ~ - m , . ,..,c ,, ._ <. _ . m c. ,.. _ )
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SEXURITIES AND EXQlAIG CQ41ISSION WASIII?UIm, D.C. 20549 EDIN 10-K ANNUAL REPORP PURSUA?TI 'IO SIrrIm 13 OR 15(d) OF THE SECURITIES EXCHANGE ACI OF 1934 I For Fiscal Year Ended Decenber 31, 1980 Camtission File Ntaber 1-7536 FI'ICHBURG GG AND ELIrrRIC LIGIT CmPANY (Exact name of registrant as specified in its d arter) Massachusetts 04-1328660 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 120 Royall Street, Canton, Massachusetts 02021 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area coda 617-828-8660 Securities registered pursuant to Section 12(b) of the Act: Nane of Each Exchange on Title of Each Class Which Registered I ConTaon Stock, $10 Par Value Anerican Stock Exchange
, ) Boston Stock Exdange Lt' Securities registered pursuant to Secton 12(g) of the Act:
Not Applicable (Title of Class) l Indicate by check mark whether the registrant (1) has filed all reports required l to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during l the preceding 12 nonths (or for sud shorter period that the registrant was required to file such reports), and (2) has been subject to such filing require-nents for the past 90 days. Yes X No State the aggregate nurket value of the wting stock held by non-affiliates of the I registrant as of March 19, 1981. Camon Stock, $10 Par Value - $11,169,540 Indicate the number of chares outstanding of each of the issuer's classes of comnon stock, as of the close of the period covered by this report. Camon Stock, S10 Par Value - 558,477 DOCUMENTS INCORPORATED BY REFERENCE Portions of the shareholders' annual report for the year ended December 31, 1980 are incorporated by reference into Parts I and II. Portions of the annual neeting proxy statement dated February 25, 1981 are incorporated by reference into Part III.
SECURITIES AND EX0IA?X3E 0041ISSIOi WASHINGTIM , D.C. 20549 FDIN 10-K ANNUAL PEPORT PURSUANT 'IO SEETIOI 13 OR 15(d) OF Tile SECURITIES EXQiANGE ACT OF 1934 For Fiscal Year Ended Decenber 31, 1980 Cmmission File Number 1-7536 I FI'ICIIBURG GAS AND ELECTRIC LIGlT C04PANY (Exact name of registrant as specified in its charter) Massachusetts 04-1328660 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) I 02021 120 Royall Street, Canton, Massachusetts (Address of principal executive offices) (Zip Code) Registrant's telephone # number, including area code 617-828-8660 Securities registered pursuant to Section 12(b) of the Act: + Nane of Each Exchange on Title of Each Class Which Registered Comon Stock, S10 Par Value American Stock Exchange 7-( ) Boston Stock Exchance L' Securities registered pursuant to Secton 12(g) of the Act: Not Applicable (Title of Class) I Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 nonths (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing require-ments for the past 90 days. Yes X No State the aggregate narket value of the voting stock held by non-affiliates of the registrant as of March 19, 1981. Comon Stock, $10 Par Value - $11,169,540 Indicate the number of shares outstanding of each of the issuer's classes of comnon stock, as of the close of the p2riod covered by this report. Comnon Stock, $10 Par Value - 558,477 DTrMENTS IfCORPORATED BY REFERDCE Portions of the shareholders' annual report for the year ended December 31, 1980 are incorporated by reference into Parts I and II. Portions of the annual meeting proxy statement dated February 25, 1981 are incorporated by reference into Part III.
I 1. PART I Its 1. BUSINESS Fitchburg Gas and Electric Light Company (the Conpany), a Massachusetts corporation organized in 1852, is an operating public utility providing electric and natural gas service to the comnunities of Fitchburg, Ashby, Lunenburg and I Townsend and natural gas service only to the comrunities of Gardner and Westminster. The estimated population of the Cmpany's service area is 80,000. Cetails of operating revenues and operating inome before income taxes attributable to I the sale of electricity and gas for the years 1978 through 1980 are given in Note 10 of the Consolidated Financial Statements. The service area encompasses approximtely 170 square miles in north central Massachusetts. The Cmpany's main office is located at 285 John Fitch Highway, Fitchburg, Massachusetts I 01420, and its principal executive office is at 120 Royall Street, Canto' Massachusetts 02021 (Telephone Number (617) 828-8660). I Electric service is supplied by the Cmpany to approximately 22,300 custoners in the omnunities of Fitchburg, Ashby, Townsend and Lunenburg. For the twelve nonths ended December 31, 1980, 53.7% of the electric operating I rwenues was derived from industrial sales, 31.0% from residential,11.5% from cmmercial, 2.8% from public authorities and 1.0% from other sources. The Company's sales to its largest industrial customer represented approximately 8% of electric operating revenues for 1980, while sales to the Company's ten I largest industrial customers represented, in the aggregate, approximately 31% of electric operating revenues. As of December 31,19PG, approximately 40% of gy industrial revenues was accounted for by paper manufacturing and allied ( ) products companies. An aggregate of 25% of industrial revenues was distributed d anong rubber and plastic manufacturers, fabricated netals products and non-transportation equipnent, non-electrical mchinery, chemical products a@ l primary netals industries. The remining 35% of industrial revenues was accounted for by miscellaneous nanufacturers, including producers of textile mill products, y parel and other finished products made from fabrics, and by printing, publishirq and allied industries. For the twelve conths ended Decmber 31, 1980, average revenues per Kilowatt-hour (KWH) sold to industrial, residential and comnercial custoners were 6.69 cents, 9.07 cents and 9.61 cents, respectively. Gas service is supplied by the Cmpany to approximately 14,300 customers I in the cmmnities of Fitchburg, Lunenburg, Townsend, Ashby, Gardner and Westminster. For the twelve nonths ended December 31, 1980, 49.0% of the gas operating revenues was derived from residential sales 13.2% frm interruptible sales to industrial customers (which are sales to customers who possess alternative energy sources and who use gas on an as-available basis), 16.0% from non-interruptible sales to industrial customers,14.8% from comnercial sales and 7.0% from other sources. As of December 31, 1980 revenues from interruptible sales made up approximately 45% of total industrial revenues. I Approximately 15% of total industrial revenues was derived from non-interruptible sales to piper manufacturing and allied products companies. The remaining 40% of total industrial revenues was derived from non-interruptible sales to fabricated metal products manufacturers, rubber and plastics manufacturers, primary iron manufacturers and miscellaneous industries. For the twelve nonths ended December 31, 1980, average revenues pcr Thousand Cubic Feet (MCF) sold to residential, interruptible, non-interruptible industrial and comnercial custmers were 524.72 cents, 306.57 cents, 527.17 cents and 489.06 cents, respectively.
~
e 2. Item 1. BUSINESS (continued) g Because of the substantial portion cf both gas and electric operating revenues derived by the company from sales to industrial customr.rs, a substantial I decline in the national economy affecting such custaners has had an adverse effect on the Comp <my's earnings. C_onpetition hhile franchise rights of the Company are non-exclusive, statutes restrict carpetition from other companies without approval of the Departrent of Public Utilities (DPU) . Under the laws of Massachusetts, a nunicipality by eppropriate vote : ray enter the gas or electric business and purenase the facilities of the utility serving such nunicipality. No nunicipality has taken any such action I in Massachusetts in recent years. However, on or about March 25, 1981, the Mayor's Office of the City of Fitchburg annowiced the City had received a
$47,000 federal grant, which was part of a federal grant received by the g
Franklin County Community Action Corporation of Greenfield, Massachusetts from g the federal Corrunity Services Administration, to undertake a two-year study of the feasibility of owning and operating a local utility system. The Company cannot presently predict what impact the proposed study may have on the Conpany or its operations. Regulation and Rates me Company is subject to regulation by the DPU with respect to retail rates, adequacy of service, issuance of securities, accounting and other ( ) matters. 'Ihe Company is also subject to regulation by the' Federal Energy (',/ Regulatory Commission (FERC) with respect to certain matters, including Few England PoweJ: Pool (NEPOOL) interchanges and other wholesale sales of electricity. As part of .such regulation, representatives of the FERC conduct regular audits of the Contaany relating to the Company's overall ccnpliance with the accounting and reporting requirements of the FERC. I The Company's retail electric and gas sales are nude pursuant to rate sdiedules on file with the DPU at rates which call for lower unit prices as nonthly usage increases. Until 1972 the Company had not requested a general rate ircrease in 52 years and during that period had made several voluntary rate reductions. During recent years the Cagany has sought rate relief designed to cover the I inpact of increaced costs. The arounts of rate relief granted by the DPU are set forth below: Type of Anount Amount Effect.ive Date Department Increase Requested Granted July 20, 1972 .......... Gas Pemanent $ 270,000 $ 228,500 August 15, 1972 ........ Electric Pemanent 480,000 357,000 I March 28, 1973 ......... April 21, 1974 ......... Gas Electric Permanent Interim 27,400 1,000,000 2,300,000 27,400(1) 767,500 2,096,000(2) October 15, 1974 ....... Electric Permanent January 12, 1976 ....... Gas Pemanent 663,000 349,451 January 12, 1976 ....... Electric Permanent 793,000 793,000 September 15,1977 ...... Gas Permanent 838,000 553,734 October 5, 1978 ........ Electric Permanent 2,795,000 1,804,180(3) (1) Granted to Gardner Gas, Fuel and Light Ccrpany, a fomer affiliate of the Company which supplied gas to the connunities of Gardner and Westminster I and which was merged into the Company in May, 1973.
3. Item 1. BUSINESS (Continued) Regulation and Rates (continued) (2) Includes the S1,000,000 requested and the $767,500 interim electric rate relief granted effective April 21, 1974. (3) S1,062,109 was granted effective September 19, 1977.
'Ihe electric rate schedules of the Cmpany for all retail sales are I subject to a cost of fuel adjustment by which rates are modified to reflect changes in the cost of fuel used for generation and the cost of purchased energy. With the approval of the DPU, the current cost of fuel adjustment I schedule has been in effect since September 27, 1974. The Cmpany's total fuel costs are determined on an estimated quarterly basis, subject to review and approval by the DPU. Toward the end of each quarter the Company compares actual fuel expenses incurred with the actual fuel adjustment revenues collected I and adds or subtracts the resulting difference from the estimated fuel costs for the next quarter.
I 'Ihe gas rate schedules of the Company for all retail sales (except interruptible sales) are subject to a cost of gas adjustnent by which the rates are rodified to reflect changes in the cost of purelased pipeline natural gas and supplemental gas. The current cost of gas adjustment schedule, which was approved by the I DPU, has been in offect since January 1, 1974. Changes in the cost of pipeline natural gas are reflected in the cost of gas adjustment after FERC has approved the increase to our pipeline suppliers. On October 16, 1980, the DPU issued ( , guidelines for a new standard cost of gas adjustment to becoce effective on a v' cmpany by cmpany basis. The guidelines of the new cost of gas adjustrent has been substantially not by the present clause. i Time-of-day rates, a pricing system that reflects the varying costs of providina h tric energy at different times of the day and/or during different seasons of the year, were filed with the DPU in early 1979. The intent of l time-of-day rates is to shift demand energy use from on-peak to off-peak periods thereby reducing the anount of new generating capacity required to serve peak loads. The rates filed by the Cmpany are applicable to residential ! EE and comnercial customers on an optional basis. In addition, the Company made available in mid-1980 an optional limited senior citizen rate which provides reduced rates to certain of the Company's residential customers. 'Ihe Company , I does not anticipate that any of these optional rates will have a significant impact on the company's financial condition. Purchase of Energy Requirement 1 I New England Power Pool [ A NEPOOL Agreement, to which the major investor-owned electric utilities E in New England, including the Cmpany, and certain nunicipal and cooperative utilities are parties, has been in effect since 1971. The objectives of NEPOOL are: (a) to assure that the bulk power supply of New England and any adjoining areas served conforms to proper standards of reliability, (b) to attain maxinum practicable economy consistent with such proper standards of reliability and (c) to provide for equitable sharing of the resulting benefits and costs. These objectives are achieved through joint planning, central dispatching, cooperation in environmental matters, coordinated construction, operation and reaintenance of electric generation and transmission facilities I
4. Its 1. BUSINESS (continued) Purchase of Energy Pfxtuirenent (continued) and coordination with other power pools and utilitics situated in the United States and Canada. Substantially all planning, operation and dispatching of electric wnerating capacity for New England is done on a regional basis under NEPOOL. At the tim of the 1979-1980 NEPOOL winter peak, the NEPOOL members I had approximtely 21,587 megawatts of installed capacity to nect the New England peak load of about 15,169 MW. I We NEPOOL Agreemnt imposes generating capacity reserve obligations and provides for the use of najor transmission and distribution facilities and I payments associated therewith. The cmpany's capability responsibility under NEPOOL involves carrying an allocated share of a New England capacity requirenent which is determined for each six-month period based on certain regional reliability criteria. Electric Operations and Energy Supply me Company has a 4.5% interest (20,115 KW) in an oil-fired generating plant in New Haven, Connecticut, which is operated by The United Illuminating Company as the majority owner. The Cmpany also has a 0.1822% interest (1,120 KW) in an oil-fired generating plant in Yarmouth, Maine, which is operated by I Central Maine Power Company as the mjority owner. In addition, the Cmpany operates under a long-term financing lease an oil-fired combustion turbine ("';
- /
electric peaking generator with a current capability of 27,910 KW. " In addition, the Company has two long-term contracts to purchase pwer from nearby utilities. We first contract is with Boston Edison Company, I expiring in 1986, for the girchase of 40,000 KW. The supply.of energy under this contract is dependent on the operating capability of the following four Boston Edison units at 10,000 KW each: Pilgrim Unit No. 1, New Boston Unit No.1, New Boston Unit No. 2, and Mystic Unit No. 7; the first being a nu -lear I unit, the latter three being oil-fired units. The contract provides that, in the event of a reduction in power supplied, the Company will be entitled to m E ratable share of the supplier's NEPOOL entitlement associated with the suppig ng g unit. %e second contract is with the Maine Electric Power Cmpany, Inc. (!EPCO) and provides for the purchase of 3,080 KW through October,1985 with provisions for earlier termination. MEPCO purchases its power, under a long-I term contract, from the New Brunswick Electric Power Cmmission h Canadian governmental entity). As part of the Cmpany's arrangement to purchase power from MEPCO, the Company is obligated to make certain support and Other payments in accordance with the PEPCO agret nt. The two purchase power contracts I require the Company to pay rronthly demand and transmission charges regardless of whether or not it purchases any energy and to pay an energy charge for each KMI of electricity it does purchase. Also, the Company has one short-term contract and one verbal agreement to purchase power from nearby utilities. The contract is with Green Mountain Power Company, weekly swapping 14,910 KW of off-peak power (when available) for 14,910 KN of the Cmpany's combustion turbine. The expiration of this contract is subject to a notice of 30 days. The agreemnt is with Northeast Utilities and provides for the exchange of 13,000 KW from the Northfield Mountain Pump Storage Hydro-generating plant for 13,000 KW of the Cmpany's embustion turbine. This is a weekly agreenent and can be ended by mutual agreenent.
I 5. Item 1. BUSINESS (Continued) Electric Operations and Energy Supply (continued)
%e three oil-fired plants, together with the three purchase power contracts, I and the purchase power agrecrent, provide the Cmpany with an approximate net capability of 92,225 KW. The maximum one-hour demand for the Conpany, exclusive of sales to other utilities, occurred on August 16, 1978 and was 75,330 KW.
I The Company's current operational capability is in excess of its customers' present _ @ ements. Based on the Company's current expectation that load requirements will grow at approximately two percent per year, the Company will I be able to provide, its projected capability responsibility to NEPOOL through the 1985-86 power year (which capability responsibility will equal approximately 94,300 KW, including a reserve beyond the Company's load requirments of approxinately 17,000 KW, during that power year). In order to avoid the I necessity of reactivating the Cmpany's stand-by capability and the necessity of entering into such short-term purchase power contracts, to minimize the Company's dependence on fossil fuels and to provide long-term base load I capability at the lowest possible cost, the Cmpany has entered into agreements for the partial ownership of four nuclear facilities, and is currently exploring the possibility of utilizing hydro-electric and other power from renewable I resources. If the two nuclear units under construction in Seabrook, New Hampshire (Seabrook Units) cp into service in 1983 and 1985, respectively, the Company believes it will be able to meet its projected NEPOOL capability (, responsibility through the 1985-86 power year, without utilizing its deactivated \ ,/ stand-by capability. L .J The ability of the Company to neet its NEPOOL capability responsibility I will depend on nuny complex factors, including (1) the state of the economy as it affects load growth, (2) when the nuclear facilities in which the Cmpany has an ownership interest, especially the Seabrook Units, become operational, (3) whether the Company requests and is granted DPU permission to reactivate I its stand-by capability, (4) the continuing availability of purchase power contracts to neet short-term deficiencies in NEPOOL capability responsibility, and (5) the results of the Company's current examination of the possibility of obtaining p wer from renewable resources, including cogeneration and hydro-electric cpneration sources. Accordingly, the ability of the Company to meet such NEPOOL capability responsibility at any time cannot be assured. Joint Projects and Other Plans he Company has entered into agreements for the partial ownership of four I nuclear facilities which are expected to cmmence comnercial operation at various tines from 1983 through 1987. As an associate participant in each project, the Company is a tenant in cmnon and is severally obligated for all liabilities of each project in proportion to its ownership share. The Company I
I 6. Item 1. BUSINESS (Continued) Joint Projects and Other Plans (continued) has also agreed to abide by the decisions of the lead participant on all I significant matters. We Company's cmbined share of the output of the to:tr nuclear units is expected to be approximately 24,600 KW including the two additional ownership interests in each of the two Seabrook Units discussed I below. The Cmpany had also entered into two additional contracts with respect I to the partial ownership of the proposed Charlestown Units No. 1 and 2 nuclear generating facilities. On October 9, 1979 the lead participant, New England Electric System, through its subsidiary ?bw England Power Conpany, announced the indefinite deferral of the in-service dates of these two Units, and subsequently exercised its right under the Charlestown ownership agreemnt to terminate the project. On November 27, 1979 the DPU approved the company's request to anortize approximately $653,000, representing the Cmpany's gross expenditures I in the Charlestown Units prior to termination of the project, over a 36 nonth period. In the opinion of the nanagerent of the Cmpany, this form of rate treatnent is adequate to insulate the Ccnpany's earnings from any significant effects of these expenditures. The Company will request DPU pennission to ay ply similar treatnent to any additional costs resulting from its association
,- m with these Units.
I ;
/
tf h e Carpany had also entered into a contract with respect to the partial ownership of the proposed Montague Units No. 1 and 2 nuclear generating facilities. On December 31, 1980, the lead participant, Northeast Utilities, I exercised its right under the Montague ownership agreement to terminate the project. te Company has requested permission of the DPU to amortize approximately
$207,000, representing the Company's gross expenditure less previously deferred I incorre taxes and related tax savings in the Montague Units prior to termination of the project, over a 60 month period. In the opinion of the management of the Company, this form of rate treatment is adegaate to insulate the Company's I earnings from any significant effects of these expenditures. We Company is unable to estimate with certainty the annunt of additional charges, or possible ost recovery, which may result from the cancellation of these two Units. The company expects to, however, request DPU permission to apply similar treatment I to any additional costs resulting from its association with these Units.
The Conpany has acquired additional ownership interests in each of the I two Seabrook Units from two sources: The Ccnnecticut Light and Power Cortpany (CL&P) and Public Service Company of New Hampshire (PSNH). On January 26, 1979, the comnon shareholders approved the acquisition of an additional 0.43332% ownership interest in each of the Seabrook Units frm CL&P. On March 25, I 1980, the cmnon shareholders approved the purchase of up to an additional 0.26087% ownership interest in each of the Seabrook Units from PSNH. The Ccmpany received approval frm the DPU to purchase both additional interests on October 30, 1980. The transfer of the portion from CL&P took place on January 30, 1981. The portion from PSNH is being transferred to the Company beginning February,1981. I
7. Item 1. BUSINESS (Continued) Joint Projects and Other Plans (continued) W e Seabrook Units will each have an expected net capability of approximately 1,150 MW. With the acquisition of the additional ownership interests, the Company will be entitled to 0.86519% of each Unit's output, which entitlenents I are estimated to be a total of 19,900 101. It is anticipated that the additional interests in the Seabrook Units will partially replace capacity covered by existing purchase power contracts which will be expiring in the mid 1980's. We nest recent estimte remived, in 1980, from PSMI, the lead participant, indicates that the Seabrook Units will be constructed at a total cost, including I at Icast an initial nuclear core, of approximtely $2,398,900,000 (excluding Allowance for Funds Used During Construction (AFUDC)). All approvals and permits from state and federal regulatory bodi required for construction of the Units have been obtained and construction ia in progress. The obtaining of I these approvals and permits has oeen opposed by a nurrber of intervening groups and denonstrators at the Seabrook site and has been tiae consuming, resulting in significantly increased costs for the project. Several court appeals from I the federal regulatory approvals are pending. In addition, PSMI announced on March 20, 1980 that, as a result of instability in the capital mrkets and delays in obtaining regulatoly approvals necessary to consummate sales of a I portion of PSMI's share of the Seabrook project, PSMI had reduced its on-site personnel by approximately one-half. This reduction caused a further delay of the in-service date of the Seabrook Unit, the extent of which is unknown at C this time.
- i U Fuel Supply I Oil. Substantially all the Cmpany's electric power is purchased from other utilities in the New England area. %ese New England electric utilities mke greater use of fuel oil for generation of power than those in other regions of the country. Most fuel oil supplies of the New England utilities are derived I from foreign sources and are subject to interferenc6 by foreign governments and price increases.
%e combustion turbine leased by the Company currently operates exclusively on oil and is primarily used for peak-load operation. The Conpany has no long-term contracts for oil supply. Should it be necessary for the Company to I reactivate currently deactivated fossil-fueled capacity, the Cmpany would attenpt to insure a supply of oil by entering, to the extent possible, into long-term contracts and bulk fuel purchases, for which the C&pany has adequate storage facilities.
While the Company intends to mke substantial replacements of power derived frcn oil with power derived from nuclear and renewable sources, the Company cannot predict with certainty whether or when such replacenents will be effected. Nuclear. The Company has been advised by the corpanies planning or constructing the nuclear generating Units in which the Conpany has an interest that such Units have contracted for certain sognents of the nuclear fuel productiori cycle through various dates. This cycle includes, anong other things, mir. ^q, enrichment and disposal or reprocessing of used fuel. The Company beh 3 that each nuclear project in which it has an interest has contracted for least an initial core of enriched radioactive mterial I
8. Item 1. BUSINESS (Continued) Fuel Supply (continued) I necessary for fuel assembly. Contracts for various segments of the fuel cycle will be required in the future, and their availability, prices and terms cannot now be predicted. We Conpany is rot aware of any contractual arrangements for reprocessing of spent fuel and there are no reprocessing facilities currently operating in the United States. Former President Carter had stated the position of his I Administration to be that the United States should indefinitely defer commercial reprocessing and recycling of spent nuclear fuel. If such services are not available when required for the Units in which the Cmpany has an interest, I the spent fuel can be stored pending reprocessing or disposal. The cost of long-term storage of nuclear wastes is not known at the present time. The Company cannot predict at this time what difficulties will be encountered regarding disposal of nuclear waste. The federal Nuclear Regulatory Cmmission I (NRC), along with other federal agencies, is in the process of developing regulations and guidelines in this area. The Cmpany expects that the Units in which it has an interest will develop plans for the disposal of nuclear u stes after promulgation of these regulations and guidelines; such plans will I be subject to regulatory approvals. Gas Operations and Supply Gas is distributed to the area served by the Conpany through approximately fi 289 miles of steel and cast iron mains. The mximum sendout in 1980 occurred
\ ,/ on December 25, 1980 when a new record of 17,722 MCF was achieved. The maximum " sendout to date occurred on January 4, 1981 when a new record of 19,721 MCP was achieved.
We Company purchases natural gas from the Tennessee Gas Pipeline Company (Tennessee) under.a firm contract which provides that the Company may take up I to 7,506 MCF of gas daily. This contract expires on November 1, 2000, but will continue beyond this expiration date until terminated by either party on twelve nonths' written notice. Beginning in January, 1974, Tennessee began to curtail deliveries of gas due to increased overall demnd in excess of pipeline capacity. All of Tennessee's curtailments are currently being mde pursuant to a curtailment plan filed I with the FERC on Septen'ber 28, 1973, approved by the FERC on March 14, 1977, and nodified from time to tine thereafter with FERC approval. The nnxinum annual quantity which the Company can purchase under this plan (volumetric purchase limitation) is 2,734,215 MCF. Curtailnents of gas deliveries to the Conpany for the period from November 1, 1980 through March 31,1981 were 0% below the winter volumetric purchase limitation. No curtailments below the sununer wlunetric purchase limitation are anticipated for the period from April 1, 1981 through October 31, 1981. Tennessee's nost recent supply forecast filed with the FERC indicates that no curtailnents below the winter volunetric purchase limitation are anticipated during the period from November 1, 1981 through March 31, 1982. The irssibility and extent of any future curtailnents, however, cannot be predicted at this time; under governing FERC opinions Tennessee has the right to increase such curtailments. Previous curtailments by Tennessee have caused the Cmpany to reduce interruptible sales. To the extent necessary, the Company intends to l continue to nake such interruptions. The Cmpany is seeking to obtain additional gas supplies in order to minimize the effects of any future curtailments.
9. Item 1. BUSINESS (Continued) Gas Operations and Supply (continued) though the Company can continue to provide an adequate supply of gas to its fim customers by reducing interruptible sales when necessary, such reductions have an adverse impact on the C mpany's earnings.
% e Conpany has an underground storage contract with Consolidated Gas Supply Corporation (Consolidated) by which Consolidated will provide, on a I firm basis, approximtely 50,000 MCF of underground storage to the Company for a twenty-year period beginning August 1,1980. The Corrpany has also executed a precedent agreement with Penn-York Corporation, formrly National Fuel Gas Storage Corporation, by which Penn-York will provide approximately 300,000 MCF of I underground storage to the Ocmpany. The agreenent provides for shipnent of 250,000 MCF's on a firm basis and 50,000 MCP on a best-efforts nethod and will expire on April 1, 2000. The Company has also executed a precedent agreenent I with Tennessee to transport all the gas which is intended to be stored by Consolidated and Penn-York. The necessary applications to provide each of these services have been filed with and noticed by the FERC, and it is anticipated that the requisite approvals will be fortheming.
As a supplement to natural gas, the Company has a propane air gas plant with a daily prosluction capacity of 7,200 MCP and a storage capacity of 29,725 I MCF. The Company also has a leased liquefied natural gas (LNG) storage and vaporization facility with a daily production capacity of 7,200 MCF and a storage capacity of 4,167 MCF. These plants are used principally during peakload i periods to augnent the supply of natural gas, j ) he Company has a contract to pirchase liquid propane from C.M. Dining, I Incorporated, which will teminate March 31, 1985. This contract pemits the Company to purchase up to 133,028 MCF equivalent each winter season.
%e ca pany also has a contract to purchase liquid propane from Petrolane-Northeast Gas Service, Inc., which expires on March 31, 1985. This contract pemits the Company to purchase an annual quantity of up to 50,459 MCP equivalent.
I The Conpany also has a contract to purchase gas from Bay State Gas Ccrparg which expires on March 31, 1988, but will continue beyond this expiration date until terminated by either party on twelve nonths written notice. This contract permits the Company to purchase an annual quantity of up to 165,000 MCF. If curtailrents by Tennessee of pipeline deliveries of natural gas do not increase significantly beyond presently indicated levels, and if LNG and liquid propane continue to be available from nurket sources, the capacities of the Conpany's ING and propane facilities, together with the natural gas available under the contract with Tennessee, are expected to provide adequate gas supplies I to fulfill the requircrents of all existing firm custoners served by the Company. %ere can be no assurance, however, that limitations on interruptible service will not continue to increase or that future restrictions will not be img> sed on firm customers. I
I 10. Item 1. BUSINESS (Continued) Environmental Matters The cmbustion turbine operated by the Company, the fossil-fueled and nuclear joint projects in which the Company has an ownership interest and the electric generating units from which the Company purchases power under long-I term contracts are all subject to regulation with regard to air and water quality and other environmental factors by cpvernmental authorities, federal, state and local. The Company believes that it is in material compliance with all applicable environmental regulations. The Company further believes that no significant expenditures will be required to maintain such compliance in the case of the cmbustion turbine operated by the Cmpany. The Company may, however, incur increased construction or operating expenditutes as a result of environmental requirements applicable to those units over which it does not have supervisory I control, but in which it has an ownership share. In complying with existing environmental regulations and further developments I in these and other areas of reguiltion, the Company as a joint participant in the units in which it has an ownership interest has incurred, and expects to continue to incur, substa tial capital expenditures for equipnnnt modifications I and additions, nonitoring equipment, recording devices and general operating expenses. The total anount of these expenditures is not now determinable. The requirennnts in these areas may also cause substantial delays in the ( ) completion of new facilities, including the four nuclear generating units in L,' which the Conpany has an ownership interest. Nuclear Licensing I Nuclear plants require various construction and operating permits from state regulatory authorities, including the DPU and the Nuclear Regulatory I Commission (NRC). These regulatory authorities extensively investigate all proposed nuclear plants in relation to safety, financial viability, and other factors. In addition to the individual safety reviews of each nuclear generating unit which are conducted by the NRC in connection with construction permit and operating license applications, the NRC may require nodifications in I units which already have a construction permit or operating license, or in the fuel for such units, to take account of new standards or technological developments. hhere such nooifications are required, it may be necessary to I reduce or cease operations of a particular unit, either on a permanent basis or until the nodifications can be effected. The expanding development of nuclear power plants in the United States I continues to be a subject of public controversy. Various groups have published articles and reports, filed lawsuits and participated in administrative proceedings such as those described above, claiming that the proliferation of nuclear power plants under the present state of nuclear technology presents unacceptable risks to public health and safety and to the environment. In addition, certain of these groups have proposed restrictive legislation in Massachusetts, Connecticut and New Hampshire, and others have participated in denonstraticns, including denonscraticna at the Seabrook Units, and raised questions in public hearings regarding the ultimate cost of energy produced I
11. Its 1. BUSINESS (Continued) Nuclear Licensing (continued) I by nuclear plants as opposed to other fuels. Since the events at Three Mile Island (21I), these efforts have sucstantially intensified. It is pssible that some of the clain's nade by sudi groups, if they should prevail, or the existence of the controversy itself, will cause delays in, or prevention of, I the construction of nuclear plants presently planned or under construction, or substantial nodifications to or extended shutdowns of plants presently in operation, any of which could have an adverse impact on the results of operations I of the Company. Enployee Relations As of December 31, 1980, the Ccrpany had 164 employees, of which 84 were represented by the Brotherhood of Utility Workers of Uw England, Incorporated. The current two-year collective targaining agreement tenninates on April 30, I 1981. We Conpany has pension plans for employees and also pays for employees' costs of a group insurance plan including life, sickness, accident and hospitalization benefits. (See Note 9 of Notes to Consolidated Financial Statements.) I Fitchburn Energy Developnent Company I -_ The Company continues to pursue the developent of domestic oil and gas supplies in an attempt to insure an adequate long-term supply of fossil fuels through its exploration and developnent subsidiary, Fitchburg Energy Development [ ; Conpany (FEDCO), which is a partner in Minutman Exploration Company (Minuteman). FEDCO is not expected to realize income in the near-term, and the Company cannot predict whether or when FEDCO's operations will become profitable. The Company's investnents in FEDCO, which are not included in its construction expenditures, are made from the general funds of the Conpany and are being borne by the Company's comron shareholders. A joint venture program through Minutenun has involved the drilling of a number of wells in bbrgan County, I Ohio, since exploration was started in July, 1978. While nest of these wells are currently producing oil and gas, the Cmpany is unable to predict at this tine what anounts, if any, will be transported back to its custoners. As of December 31, 1980, the cmpany had an investment of $20,000 in FEDCO, representing I 100% of FEDCO's outstanding comnon stock. In addition, as of December 31, 1980, FEDCO had received capital contributions from the Company anounting to
$666,000, but a DPU order currently limits the Company's capital contributions I to FEDCO to 51,000,000. The Cmpany anticipates petitioning the DPU for the right to invest further funds in FEDCO. Hearings, if required, are expected to be held in the latter part of 1981.
Item 2. PROPERTIES The Company owns a propane gas plant and leases an LNG plant, all of I which are located on land owned by it in fee. The Conpany has entered into agreenents for joint ownership in four nuclear and two fossil fuel generating facilities. At December 31, 1980 the electric properties of the Compa.y consisted principally of 67 miles of transmission lines, 21 transmission and distribution substations with a capacity of 293,300 KVA and 403 miles of distribution lines. Electric transmission facilities (including substations) and steel and cast irca gas mains owned by the company are, with minor exceptions, located on land owned by the Company in fee or occupied pursuant to perpetual easements. %e Company leases its service building and a embustion turbine electric peaking generator. For further details see Business - Electric I Operations and Energy Supply and Gas Operations and Supply above for additional information regarding the Ccrpany's plants, facilities and gas mains and services.
12. Item 3. LEGAL PROCEEDING W ern are no m terial pending legal proceedings, other than ordinary I routine litigation incidental to its business, to which the Cmpany or its subsidiary is the subject, except as noted in Note 8 to the Consolidated Financial Statements. %ere are no material legal proceedings to which any director, officer or affiliate of the Company o_r any associate of any such person, is a I party, or has a material interest, adverse to the Company. There are no material proceedings arising under environmental quality and civil rights statutes pending or known to be contemplated by governmnt agencies to Phich the Company or its subsidiary are a party. Item 4. SECURITY OMERSHIP OF CEIRAIN BENEFICIAL OWNERS AND MANAGD4ENT (a) As of February 17, 1981, the voting securities of the Company consisted of 558,477 shares of Cormon Stock, $10 par value. As of that date, no person held of record and, to the knowledge of the capany, no person owned beneficially mre than 5% of such securities. - (b) The information shown below pertains to the direct and indirect beneficial i ownership of the Company's equity securities by each of the Company's Directors I, and by all Directors and officers as a group as of February 17, 1981. Nam of Individual Anount and Nature I or Number of Persons in Group of Beneficial Ownership of Cmmon Stock Percent ! / Philip H. Bradley - L/ Richard L. Brickley 25(a) .00% Howard W. Evirs, Jr. 1,320(a) .24% I John Grado, Jr. Thomas W. Sherman 410(b) 500(a) 125(a)
.07%
.09%
.02%
56(b) .01% I Robert V. Shupe Charles H. Tenney II 100(a) 250(a)
.02%
.04%
165(b) .03% I Robert L. Ware 9,532(c) 137(a) 1.71%
.02%
I 14 Directors and officers as a group including above-namd persons 2,647(a) 10,568(d)
.48%
1.89% (a) 5 hares directly owned; individuals have voting and investe nt power with respect to these shares. I (b) Shares held in trust under terms of Cmpany's ".;t;ployee Stock Ownership Plan (ESOP); individual has voting power e m vi'.h respect to shares credited to his account. (c) Mr. Tenney has a 1/6 beneficial inte .c f of the trusta which own these rhares and a 1/9 beneficial intr:mst la Be other; he is Co-trustee of both trusts with shared voting and investment p w r, He disclaims any beneficial ownership of such shares other than such 1/6 and 1/9 beneficial interests. I
13. Item 4. SECURITY OEERSHIP OF CERTAIN BENEFICIAL CWNERS AND MANAGD4ENT (continued) (d) In addition to ine 10,163 shares (1.82%) shown and footnoted above as owned other than directly, the officers of the Company who are not Directors I have a total of 299 shares (.05%) held in the ESOP trust (see (b) above) and one of such officers lists 106 shares (.02%) which are owned by a family member; said officer has no voting or investnent power with respect to, and no beneficial interest in, such shares. Sh Director or officer of the Company has direct or indirect laeneficial ownership of any shares of either of the outstanding series of the Company's Cumulative Preferred Stock, $100 par value. (c) The Registrant knows of no arrangement, including any pledge of securities I of the Registrant, the operation of which may at a subsequent date result in a change in control of the Registrant. I I 9 lI iI I I lI l 'I I
PART II I Itc.n 5. tmRKET FOR THE REGISTRANT'S OPJON STOCK AND RELATED SECURITY 10LDER MATTERS Comnon Stock Market Prices and Dividends on page 4 of the shareholders' I annual report for the year ended December 31, 1980 is inccrporated herein by reference. Item 6. SELECTED FINAtCIAL DATA Selected Financial Data on pages 26 and 27 of the sharehciders' annual report for the year ended December 31, 1980 is incorporated herein by reference. Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINAFCIAL (DNDITION AND RESULTS OF OPERATIONS Managenent's Discussion and Analysis of Financial Condition and Results of Operations on pages 24, and 25 of the shareholders' annual report for the year ended December 31, 1980 is incarporated herein by reference. Item 8. FINAtCIAL STATENENTS AND SUPPLDIENTARY DATA The following financial statements of the registrant, included on the following pages in the shareholders' annual report for the year ended December 31, 1980, are incorporated herein by reference: Page tb. Consolidated Balance Sheets - December 31, 1980 and 1979 12-13 Consolidated Statements of Earnings - for the years I ended December 31, 1980, 1979, and 1978 14 Consolidated Statments of Changes in Financial Position - I for the years ended Decenber 31, 1980, 1979 and 1978 Consolidated Statements of Retained Earnings - for the 15 years ended December 31, 1980, 1979 and 1978 16 Notes to Consolidated Financial Statements 16-22 Peport of Independent Certified Public Accountants 23 PART III Item 9. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT Information pertaining to Directors of the registrant on pages 2 and 3 of the proxy statement for 1981 annual meeting is incorporated herein by reference. I
15. Item 9. DIRECIORS AND EXECUTIVE OFFICERS OF THE REX 3IS* RANT (continued)
'Ihe names, ages and positions of all of the executive officers of the Company as of March 25, 1981 are listed below along with their bisiness I experience during the past five years. All officers are elected or appointed annually by the Board of Directors at the Directors' first necting following the annual meeting which is held on the fourth Tuesday in March. There are no family relationships among these officers, nor is there any arrangement or I understanding between any officer and any other person pursuant to which the officer was selected.
I Nane, A and Posit j Business Experience During Past 5 Years I Charles H. Tenney II, 62 Chairman of the Board of Directors and Chief Director, Chairman of the Board of Directors and Chief Executive Officer of the Company; Director, Executive Officer Chairman of the Board of Directors and Chief Executive Officer of the Company's subsidiary; Director, Chairnan of the Board of Directors I and Chief Executive Officer of Bay State Gas Company, Concord Electric Company and Exeter & Hanpton Electric Company. Howard W. Evirs, Jr., 55 Director and President of the Company; President Director and President of the Canpany's 9 Frank L. Childs, 36 subsidiary. Vice President since 1979 and Treasurer I Vice President and Treasurer since 1980 of the Company (Assistant Treasurer 1979-1980; in Financial Departnent prior thereto); Director, I since 3/24/81, Vice President and Treasurer of the Company's subsidiary; Director since 3/11/81 and Vice President and Treasurer since 1980 of Concord I Electric Company and Vice President and Treasurer since 1980 of Exeter & Hampton Electric Company (formerly I Assistant Treasurer of each 1979-1980; in Financial Departnent of each and of Bay State Gas Company prior thereto). David K. Foote, 33 Vice President since 1980 of the Corpany Vice President (Assistant Vice President 1978-1980; Manager, Energy Production prior thereto); I Director, since 3/24/81, and Vice President of the Carpany's subsidiary. Edward D. McKenzie, 56 Assistant Treasurer since 1979 of the Assistant Treasurer Company; Assistant Treasurer of the Company's subsidiary; Assistant Treasurer since 1979 of Concord Electric Conpany and Exeter & Hampton Electric Company (Assistant Treasurer 1978-1979 of Bay State Gas Company; Controller thereof prior thereto)
E 16. Angela P. Carlson, 43 Clerk of the Cmpany; Secretary of the Clerk Cmpany's subsidiary; Clerk of Bay State I Gas Ccmpany; Secretary of the Board of Directors of Concord Electric and Exeter
& Hampton Electric Company.
William D. MacGillivray, 37 Assistant Clerk since 1979 of the Capany; Assistant Clerk Assistant Secretary of the Company's subsidiary; Assistant Clerk since 1979 I of Bay State Gas Cortpany (Manager, Tax Services of Bay State Gas Cmpany since 1977; with Alexander Grant & Cmpany prior thereto). Edward R. Harriman, 51 Controller since 3/24/81' of the Capany Controller (also Assistant Vice President since 1972); Controller of the Company's subsidiary. I Item 10. MANAGDiENT RD4UNERATION AND TRANSACTIONS I Infonnatics pertaining to remuneration of the registrant on pages 4 and 5 of the proxy statement is incorporated herein by reference. 9 PART IV Item 11. EXHIBITS, FINA?CIAL STATD4ENP SCHEDULES AND REFORTS CN FORM 8-K. (a) (1) and (2) - The response to this portion submitted as a separate section of this report. (3) Exhibits Exhibit No. Description of Exhibits Reference
- 3.1 Articles of Organization, Exhibit 2.1 to
, as supplemented registration statement l 2-67343 3.2 By-laws Exhibit 3 to Form 10-K for 1979 4.1 4 7/8% Purchase Agreement dated ** February 2, 1959 due February 1, l 1984 4.2 9 3/8% Indenture dated March 1, Exhibit 4.1 to l 1970 due March 1, 1995 Registration statenunt i 2-35954 l l I
17. Exhibit No. Description of Exhibits Reference
- 4.3 First Supplenental Indenture dated Filed herewith Septaber 11, 1974, relating to I the 9 3/8% Indenture dated March 1,1970, due March 1,1995.
I 4.4 10% Indenture dated September 15, 1976 due Septanber 1,1996. 4.5 10 1/4% Indenture dated May 1, 1974 I due May 1, 1999. Filed herewith 4.6 15 3/4% Indenture dated October 15, 1980 due September 1, 2000 10.1 Waiver of the Canpany's right to Filed herewith I purchase all or any part of Millstone Unit No. 3 offered by Montaup Electric Company dated December 23, 1980 10.2 Agreenent dated February 18, 1980 Exhibit 21 to between the Canpany and Consol- 10K for 1979 I idated Gas Supply Corporation (Consolidated) to provide natural gas storage service; P and between the Cmpany and Tennessee Gas Pipeline Company (Tennessee) to provide a natural gas transportation service through I 10.3 April 1, 2000 Agrecrent dated (btober 1, 1980 Filed herewith between the Cmpany and C.M. Dining, Incorporated (Dining) l for the purchase of 1,450,000 l gallons of propane p r year for the next five years. l g 10.4 Agreenent dated August 26, 1980 Filed herewith
- g between the cmpany and Petrolane tbrtheast Gas Service (Petrolane),
l a five year mntract for the I purchase ot' 550,000 gallons of propane p2r year. 10.5 'Ihird Anendnunt dated June 30, 1980 Filed herewith I relating to Pilgrim Unit 16. 2 between the Coupany, Boston Edison , l Company and other participants I
18. Exhibit No. Description of Exhibits Reference
- I 10.6 Agreement dated July 1, 1980 between the Company and Green Mountain Power Corporation (GMP)
Filed herewith providing for the weekly exchange I of W P's system capacity and associated energy for capacity in the Company's mnbustion turbine. 10.7 Agreement dated March 18, 1980 Filed herewith I between the Company and Baneri-leasa Capital Corporation (Bamerilease) and Burroughs Corporation transferring the I Company's right, title and interest in a Burrough's Model 1855 computer system and terminals to Bamerilease and the subsequent leasing of said equipnent. 10.8 Precedent Agreement dated February Filed herewith 10,19^1 between the Cmpany and 9 National Fuel Gas Supply Corp-oration (National Gas) to provide to Penn-York the volume of base gas needed in conjunction with I development of underground storage facilities. l I 10.9 Precedent Agreenent dated October 1, 1980 between the Cmpany and Penn-York Energy Corporation Filed herewith (formerly National Gas Storage I Corporation) providing for the development of undetyround l storage facilities. ! 10.10 Precedent Agreenunt dated October 21, Filed herewith l' 1980 between the Company and
- Tennessee providing for firm i natural gas transportation service of gas stored by i Consolidated.
lI l 10.11 Sixth Extension Agreement dated Filed herewith l i November 12, 1980 between the Company and The Connecticut
. Light and Power Cmpany to l transfer ownership share in l each of the Seabrook Units to i
March 31, 1981. 1
19. Exhibit No. Description of Exhibits Reference
- 10.12 Extension Agreements between the Exhibit 15 to Company and the Connecticut 10K for 1979 I Light and Power Company to transfer ownership share in each of the Seabrook Units.
10.13 'Iwlfth and thirteenth Artendment Filed herewith to Agreement For Joint Ownership, Construction and I Operation of New Hampshire Nuclear Units dated June 16, 1980 and December 31, 1980 between the Company and Public Service Company of New Hampshire. 10.14 Master Lease dated December 9, 1980 Filed herewith I between the Cmpany and Security Pacific Comtrercial Leasing, Inc. providing for the lease of all the I rrodular furniture; chairs, partitions, tables and desk tops, located in the new service center. 10.15 Icase Agreement dated August o, 1980 Filed herewith between the Company and Fitchburg Associates providing for the sale 9 and lease back of the new service center. Exhibit 11 to I 10.16 Agreement dated Deceaber 11, 1979 relating to the purchase of B1855 Data Processing System 10K for 1979 between the Company and I Burroughs Corporation. Exhibit 5 and 6 10.17 Amendment No. 2 to Pension Plan dated January 16, 1979 (pertaining to 10K for 1979 to union and nonunion employees). I Labor Agreement, effective May 1, 10.18 Exhibit 8 to 1979 between the Company and the 10K for 1979 Brotherhood of Utility Workers of New England, Inc. Iocal No. 340. 10.19 Letter agreement dated May 30, 1979, Exhibit 12 to amending the Boston Edison 10K for 1979 Corrpany contract. 10.20 Amendments to Escrow Agreement Exhibit 14 to dated April 30, 1979, relating to 10-K for 1979 the New Hampshire Nuclear Units between the Company and Central Maine Power Carpany and other participants.
20. Exhibit No. Description of Exhibits Reference
- 10.21 Contract dated February 18, 1980, Exhibit 21 to between the Cmpany and consol 10K for 1979 I idated Gas Supply Corporation 10.22 Precedent agreem2nt dated February Exhibit 22 to 25, 1980, between the Cmpany 10K for 1979 and National Fuel Gas Supply Corporation.
10.23 Joint Ownership Agreement, dated Exhibit 24 to October 13, 1972, relating to Form 12K for Pilgrim Unit No. 2 between the 1972 I Cmpany, Boston Edison Cmpany and other participants. 10.24 Agreement for Joint Ownership Exhibit 13.9 to Construction and Operation of Registration New Hampshire Nuclear Units, Statment I dated May 1,1973, beticen the Company, Public Service Cmpany of New Hampshire and other 250466 participants. 10.25 William F. Wyman Unit No. 4 Exhibit 2.1 to Agreement for Joint Ownership, Form 12K for 9 Construction and Operation, dated November 1,1974, between the Company, Central Maine Power 1974 I Company and other New England utilities. 10.26 Agreement for Joint ownership, Exhibit 2.11 to I Planning and Operations of New Haven Harbor Station Unit No.1, dated August 1, 1975, between the Form 12K for 1975 I Company, The United Illuminating Comp =ny and other pariticpants. 10.27 Joint Ownership Agreement, dated Exhibit 2.20 to 3 Septmber 1, 1977, relating to 10K for 1977 5 l Millstone Unit No. 3 betwen the I g Company, subsidiaries of Ibrth g east Utilities and other participants. Filed herewith ! I 11.1 Statement re. cmputation in Support of Earnings Per Share i 12.1 Statement re. computation in Filed herewith Support of Patio of Earnings to Fixed Charges. 1
I 21. Exhibit No. Description of Exhibits Reference
- 13.1 Annual Report to Shareholders Filed herewith 22.1 Statement re. Subsidiaries of Filed herewith Registrant
- The exhibits referred to in this column by specific designations and dates have heretofore been filed with the Securities and Exchange Commission I under such designations as are hereby incorporated by reference.
** Copies of those debt instnments will be furnished to the Securities and Exchange Commission upon request.
(b) Report on Fonn 8-K tb reports on Form 8-K were filed during the fourth quarter of I the year ended December 31, 1980. (d) Financial Statement Schedule I The response to this portion of Item 11 is sulnitted as a separate section of this report. I I 1 I I
22. l 5 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has caused this report to be signed on its behalf by the undersigned themunto duly authorized. FI'ICHBURG GAS AND ELECTRIC LIGIT COMPANY March 27, 1981 By Frank L. Childs Frank L. Childs (Vice President and Treasurer) I Pursuant to the mquirenents of the Securities Exchange Act of 1934, as amended, this mport has been signed below by the following persons in the capacities on the dates indicated Signature Capacity Date Principal Executive
- Officer; Director March , 1981 I Charles H. Tenney II (Chainnan of the Board of Directors)
I Frank L. Childs Frank L. Childs Principal Financial Officer March 27, 1981 P (Vice President and Treasurer) Principal Accounting
- Officer Mcut - , 1981 I Edward R. Harriman (Controller) l I Howard W. Evirs, Jr.
(President)
- Director March , 1981
- Director March , 1981 Philip H. Bradley Richard L. Brickley l
l Director March , 1981 John Grado, Jr. March , 1981 I
- Director i
Thonus W. Sternnn
- Director March , 1981 i _
i Robert V. Shupe
- Director March , 1981 l _,_
Robert L. Ware l
- By Frank L. Childs March 27, 1981 Frank L. Childs (Attorney-in-Fact)
I l 23. 6 ANNUAL REPORT ON FORI 10-K ITEM 11(a)(1) and (2) and ITEM 11(d) LIST OF FI?MCIAL STATEMEtTPS AND FI?MCIAL STATDIENT SOIEDULES FI?MCIAL STAT &fENT SCHEDULES YEAR ENDED DECD1BER 31,1980 WITH REPORT OF INDEPENDENT CERTIFIED PUBLIC ACODUNTANTS O I I Prepared for filing as rnrt of Arntu1 Report (Form 10-K) To the Securities and Exchange Commission I
24. FDPN 10-K -- ITEM 11(a)(1) Aro (2) Fitchburg Gas and Electric Light Campany LIST OR FINANCIAL STATEMENTS AND FINA?CIAL STATEMEN'T SCHEDULES The following financial statements of FitenburtJ Gas and Electric Light Company and subsidiary, included in the annual report of the registrant to its shareholders for the year ended December 31, 1980, are incorporated by reference in Item 8: Page No. Consolidated Balance Sheets - December 31, 1980 and 1979 12-13 Consolidated Statements of Earnings - for the years ended December 14 I 31, 1580, 1979 and 1978 Consolidated Statements of Changes in Financial Position - for the 15 years ended December 31, 1980, 1979 and 1970 Consolidated Sta its of Retained Earnings - for the years ended 16 December 31, 198 379 and 1978 Notes to Consolidated Financial Statements 16-22 Report of Independent Certified Public Acccuntants 23 The following consolidated financial statenent schedules of Fitchburg 9 Gas and Electric Light rm and subsidiary are included in 11(di-Page No. Peport of Indepencent Certified Public Accountants 25 For the three years ended December 31, 1980, 1979 and 1978: Schedule V Property, Plant and Equipnent 26-28 Schedule VI Accumulated Depreciation, Depletion and Anortization !I Property, Plant and I Equipment 29-31 3 Schedule VIII Valuation and Qualifying Accounts 32 ! g Schedule IX Short-terTn Borrowings 33 I Schedule X Supplementary Inconu Statement Information 34 i All other schedules for which provision is nude in the applicabic g accounting regulation of the Securities and Exchange Commission are not i 5 required under the related instructions or are inapplicable, and there-fore have Men omitted. l Separate f' acial statemants and supplemental schedules of the Company are crittec since the Company is primarily an operating conpany and its subsidiary, included in the consolidated financial statements being i filed, does not have a minority equity interest or indebtedness to any i person other than the Company in an anount which exceeds five percent l of the total assets as shown by the consolidated financial statements i as filed herein.
25. REPORT OF INDEPENDENT CERTIFIED PUBLIC ACODUNTANTS
'IO 'IllE SIIAREIIOLDERS OF FI'IUlIllURG CAS AND ELECTRIC LIGIT CU4PANY In connection with our examination of the consolidated financial statements of Fitchburg Gas and Electric Light Company and Subsidiary referred to in our report dated February 5,1981, which is incorporated I by reference to the 1980 Annual Report to Shareholders, we have also examined the schedules listM in the Index at Item 11(a)(2). In our opinion, these schedules pres.ent fairly the information required to be set forth therein.
We also consent to the incorporation by reference of our afore-g mentioned report dated February 5, 1981, constituting part of the g Fitchburg Gas and Electric Light Company Employee Stock Ownership Plan's Registration Statement on Form S-8. I Alexander Grant & Company i Boston, Massachusetts February 5, 1981 9 I I I I l8 lE 1 ,I l_____ _ _ __ ____ ____.
M M M M M M M M M* M M M Mr M M FITQBURG GAS AND ELECI'RIC LIGirl' 00MPANY AND SUBISDIARY PROPERIY, PLMI' AND F)QUIPMENT POR Tile YEAR ENDED DECEMBER 31, 1980 CDLUMN A COLB1N B (DLUMN C COLUMN D COLUMN E QLUMN F Balance at Other 01anges BalancT Beginning of Addit ions Ret irmats Debit and/or at End of Classification PPriod at Cost or Sales (Credit ) Ibriod ELECTRIC: Product ton P1 ant $ 7,565,103 $ 60,499 $ -
$ - $7,625,602 Transnission Plant 7,546,700 '61,203) 7,257 -
7,478,240 Distribution P1 ant 14,117,689 763,054 144,705 - 14,726,038 General Plant 559,463 47,578 9,941 - 597,100 Unfinished Cbnstruction 5,003,122 1,544,867 - (294,309)(A) 6,253,680 Property Held for Fbture Use - 26,750 - - 26,750 GAS: Intangible P1 ant 36,387 -- - - 36,387 Production and Storage P1 ants 814,164 66,436 - - 880,600 Distribution Plant 9,719,041 2,006,236 69,995 - 11,655,282 General Plant 193,644 30,233 - - 223,877 Unfinished Construction 182,017 117,923 - - 299,940 00MVfW: Production P1 ant 9,225 - -- - 9,225 General Plant 1,386,325 31,862 22,231 - 1,395,956 thfinished Const ruct ion 11,252 (132) -- -- 11,120
'Ibt al $4",144,132 S4,624,103 3 254,129 $(294,309) $51,219,797 OIllER PHYSICAL PROPERIY: $ 26,005 S 26,005 (A) Abandonment of Montague Units 1 and 2 (Note 2).
(B) 'Ihe annual provisions for depreciation have been computed principally in accordance with the following range of h rates: g Type of P1 ant Elect ric Gas Carmon b Production Plant and Storage Plant 3.095-3.5/2% 2.008-4.061% - < Transmission Plant 1.589-2.s83% Distribution Plant 1.856-8.385% 1.897-7.672% - Equipnent 8.504% 10.496% 4.929% h Ceneral Plant 1.798-4.529% 1.837-5.738% 2.739-5.292%
M ) M M M M M M M* M M M M M' M ' M FITOlBURG GAS AND ELECTRIC LIGilT COMPANY AND SUBISDIARY PROPERIY, PLtNT AND EQUIPMENT FOR TIIE YEAR ENDED DECEMBER 31, 1979 WLUMN A 00LLNN B 00LUMN C WLUMN D 00LUMN E COLUMN F Balance at Other G anges Balance Beginning of Addit ions Ret irement s Debit and/or at End Classification Period at Oost or Sales (Credit ) Period ELECrdIC: Product ion Plant S 7,454,740 $ 111,704 $ 1,341 $ S 7,565,103 Transmission P1 ant 7,324,571 223,604 1,475 - 7,546,700 Dist ribut ion Plant 13,873,619 403,971 159,901 14,117,689 General Plant 494,481 106,282 41,300 559,463 Unfinished Const ruct ion 4,046,581 1,609,078 - (652,537)(A) 5,003,122 GAS: Intangible Plant 36,387 -- - - 36,387 Production and Storage Plants 1,032,516 140 202,939 (15,553) 814,164 Distribution Plant 8,486,877 1,322,640 90,476 -- 9,719,041 General Plant 163,887 42,756 12,999 - 193,644 Unfinished Construction 107,612 58,852 - 15,553 182,017 00MMON: Production Plant 9,225 - - - 9,225 General Plant 1,421,343 18,476 53,494 - 1,386,325 Unfinished Construction 9,456 1,796 -- - 11,252
'Ibt al S44,461,295 $3,899,299 F 563,925 $ (652,537) S47,144,132 OTHER PHYSICAL PROPERTY: S 26,005 S 26,005 (A) Abandonment of Garlestown Units 1 and 2 (Note 2).
(B) 'Ihe annual provisions for depreciation have been computed principally in accordance with the following range of rates: Type of Plant Elect ric Gas Qxnnon Production Plant 3.095-3.572% 2.008-4.061% -- 8 Storage Plant - 4.751 % - Transmission Plant 1.589-2.983% - - M Distribut ion Plant 1.856-8.88bi 1.897-7.672% - E Equipment ~8.504 % 10.496 % 10.065% <: General Plant 1.798-4.5294 1.887-5.738% 2.739-4.968% M.
M M M M M M M M M M M M M M M FITUIBURG GAS AND ELECTRIC LIGHT ODMPANY AND SUBISDIARY PROPERTY, PLANT AND EQUIPMENT FDR 'lTIE YEAR ENDED DECEMBER 31, 1978 CDLUMN B OP!.UMN C (DLUMN D CDLUMN E (DLUMN F ODLUMN A Balance at Other Changes Balance Beginning of Addit ions Retirements Debit and/or at End Classificat ion Period at Cost or Sales (Credit ) Period Product ion Plant $11,159,403 $~374,798 $2,910,002 $(1,169,459)(A) $ 7,454,740 ELECTRIC: Transmission P1 ant 6,483,861 844,429 3,719 - 7,324,571 12,420,373. 703,485 123,466 873,227 (A) 13,873,619 Distribut ion P1 ant 494,481 General Plant 491,811 7,940 5,270 - Unfinished Const ruct ion. , 3,240,144 806,437 - - 4,046,581 36,387 36,387 Int angible Plant - - GAS: Production and 1,032,516 Storage Plants 1,037,340 1,026 5,850 -- 7,724,411 807,358 44,892 8,486,877 Distribut ion Plant 147,521 20,551 4,185 - 163,887 General P1 ant 107,612 Unfinished Const ruction 181,540 (73,928) - -- 9,225 - 9,225 Produet ion Plani - - COMMON: 296,232 (A) General P1 ant 1,154,183 27,650 56,722 1,421,343 13,989 (4,533) - - 9,456 Unfinished Const ruct ion $44,461,295
$44,100,188 $3,515,213 $3,154,106 S Tota 1 26,005 $ 26,005 OlllER PHYSICAL PROPElfrY: $
(A) Transfer of assets previaasly used in conjunction with abandoned Unit #6 now used for other purposes. (B) 'Ihe annual provisions for depreciation nave been computed principally in accordance with the following range of rates: Type of Plant Elect ric Gas (bnmon g Production Plant 3.095-3.572% 2.008-4.061% - b Storage Plant - 4.751 4 - T ansmission Plant 1.589-2.983% -- - Distribut ion Plant 1.856-8.885% 1.897-7.672% - ES Transportat ion Equignent 8.504 % 10.496 % 10.0G5 %
- General Plant 1.798-4.5291 1.887-5.738% 2.739-4.968%
m M M M M M M gM M M 'M M M M M FI'IGIBURG GAS AND ELECTRIC LIGHT COMPANY AND SUBSIDIARY , ACG MULATED DEPRECIATION, DEPLErION AND AMORTIZATION OF PROPERIY, PLANT AND EQUIPMENT FOR Tile YEAR ENDED DECEMBER 31, 1980 ODfEIN A CDLUMN B 00LUMN C CDLUMN D CDLUMN E ODLUMN F Addit ions Balance at Garged Other Ganges - Balance at Beginning to Costs Add (Deduct ) - End of - Description of Period and Expenses Retirements Describe Period Gas Plant $1,786,706 $ 331,886 $ 69,995 $ (30,987)(A) $ 2,017,610 Electric Plant 7,609,839 936,433 161,903 (36,751)(B) 8,347,618 Conmon Plant 429,465 43,800 22,231 18,457 (C) 469,491 Amortization of Leasehold Improvements 17,432 8,716 - - 26,148 Amortization of Organizational Expenses 6,368 909 - - 7,277 .Vnortization of Gas
'Ibrbine Improvements - 6,890 - 298 7,188 Amortization of LNG Plant Improvements - 2,335 - 21,484 23,839 Tot al $9,849,810 $1,330,989 $254,129 $ (27,499) ,
$10,899,171 (A) Capitalized depreciation of $7,357 on heavy duty equipment used in plant construction, net cost of removal
($16,860), and depreciation transferred to the reserve for the amortization of LNG Plant Improvanents of g ($21,484). tri (B) Capitalized depreciation of $12,344 on heavy duty equipment used in plant const ruction, not cost of removal ($30,002) and depreciation transferred to Conmon Plant ($19,094). (C) Net cost of renoval of ($637) and depreciation transferred from Electric Plant $19,094.
M M M M M M M 'M M M M M M M FI'IGIBURG GAS AND ELECTRIC LIGiff GNPAW AND SUBSIDIARY ACCUMULATED DEPRECIATION, DEPLbTION AND AMORTIZATION OF PROPERTY, PLANT AND EQUIPMENT FOR THE YEAR ENDED DECEMBER 31, 1979 Q)LUMN C COLUMN D COLUMN F COLU'.!N A COLDiN B _CDLUMN E Additions Balance at G arged Other G anges - Dalance at Beginning to Costs Add (Enduct ) - End of of Period anc Expenses Retirements D> scribe Ibriod Description
$1,855,987 $ 264,677 $292,129 $ (41,829)(A) $1,786,706 Gas Plant 204,017 (12,253)(B) 7,609,839 Electric P1 ant 6,909,244 916,865 45,226 53,494 23,057 (C) 429,465 Conrnon P1 ant 414,676 Amortization of 17,432 Irasehold Improvements 8,716 8,716 - -
Amortization of 6,368 Organizat ional Expenses 5,458 910 -- -- S1,236,394 $549,640 $ (31,02]5 $9,849,810 Tota 1 $9,194,081 (A) Capitalized depreciation of $9,065 on heavy duty equipment used in plant construction and net cost of rerroval ($50,894). (B) Capitlaized depreciation of $9,863 on heavy duty equipment used in plant construction and net cost of removal ($22,116). (C) Insurance Proceeds Received. g
- r E
o b
M M M M M M M gM M M M M M M M FITOlBURG GAS AND ELECTRIC LIGilT Gh!PANY AND SUBSIDIARY ACCUMULATED DEPRECI ATION, DEPLETION AND AMOtTflZATION OF PitOPElflY, PLANT AND EQUIPMENT FOR 'IllE YEAR ENDED DECEMBER 31, 1978 WLUMN A CDLUMN B ODLUMN C WLUMN D CDLUMN E CDLUMN F Additions Balance at Qarged Other 01anges - Balance at Beginning to Costs Add (Deduct ) - End of Description of Period and Expenses Retirements lbscribe Ibriod Gas Plant $1,689,967 $ 230,370 $ 73,815 $ 9,465(C) $1,855,987 Electric Plant 7,065,813 898,102 3,037,384 1,982,713(A)(B)(C) 6,909,244 Comnon Plant 259,273 43,689 49,662 161,376(A)(B) 414,676 Acquisition Oost - 8,716(D) - - 8,716 Organization Expenses 4,548 910 - - 5.458
'Ibt a1 $9,019,601 S1,181,787 S3,160,861 $2,153,554 $9,194,081 (A) Depreciat ion t ransfer of $160,640 between primary accounts.
(B) Depreciation reserve adjustments on abandoned property of $2,137,318. (C) Capitalized depreciation of $16,236 on heavy duty equipment used in plant construction. (D) Additional costs incurred in connection with NEPCO facilities purchase. 10
- r b
E. to N
.O
M M M M M M M M M M M M M M M FITOlBURG GAS AND ELECTRIC LIGHT AND SUBSIDIARY VALUATION AND QUALIFYING ACCDUNTS AND RESERVES ODLUMN A 0)LUMN B 00LUMN C CDLUMN D ODLUMN E Additions Ihlance at Qarged to Warged to Deduct ions Balance Beginning Costs and Other from at End Description of Period Expenses Accounts Reserves of Deriod For Year ended December 31, 1980 Reserves Deducted from Accounts Receivable Elect ric $129,080 $223,175 $ 46 377(A) $166,232(B) $233,000 Gas 47,825 140,606 s ,384(A) 105,815(B) 126,000 Other 675 32,572 13,496(A) 44,243(B) 2,500
$177,580 $396,353 $103,857 $316,290 $361,500 For Year ended Deconber 31, 1979 Reserves Deducted from Accounts Receivable Elect ric $145,244 $277,912 $ 27,409(A) $321,485(B) $129,080 Gas 51,031 98,681 23,077(A) 124,964(B) 47,825 Ot her 24,205 20,432 3,544(A) 47,506(b) 675
$220,480 $397,025 $ 54,030 $493,955 $177,580 For Year ended December 31, 1978 Reserves Deducted from Accounts Receivable Elect ric $ 81,268 $276,599 $21,216(A) $233,839(B) $145,244 Gas 23,954 79,661 18,949(A) 71,533(B) 51,031 8.
Other 4,092 37,315 7,067(A) 24,269(B) 24,205 E.
$109,314 $393,575 $47,232 $329,641 $220,480 S d
(A) Collections on Accounts previously charged off. (B) Bad Debts charged off.
.U
M M M M M M M gM M M M M M M M FI'IGIBURG GAS AND ELECTRIC LIGff GMPANY SHORT-TERM BORIGINGS COLUMN A ODLUMN B ODLUMN C COLUMN D COLUMN E COLUMN P Maximum Average Weighted Weighted Anount Anount Average Balance Average Outstanding Outstanding Interest Rate Category of Aggregate At End of Interest Durina the During the During the short-Term Borrowings Period Rate Period Period (B) Period (C) Year Ended December 31, 1980 Notes Payable (A) S1,700,000 21.50% $6,950,000 $3,066,721 14.43% Year Ended December 31, 1979 Notes Payable (A) $5,420,000 15.33% $5,610,000 $2,441,400 13.01% Year Ended December 31, 1978 Notes Payable (A) S 970,000 11.52% S2,700,000 $1,491,700 8.61% (A) Borrowing terms are outlined in Note 6 of Notes to Consolidated Financial Statements. (B) The average anount outstanding during the period was computed by dividing the total of daily outstanding principal balances by the number of days within a year. (C) The weighted average interest rate during the period was computed by dividing the actual interest expense by average short-term debt outstanding. I a u _ _-_ _ _ 1
M M M m M M M M M M M M M M M []v FI'IGIBURG GAS AND ELECTRIC LIGIT OCMPANY AND SUBSIDIARY . SUPPLEMEtEARY INCOE STATEMEtE INFORMATION s COLUMN A COLUbN B Item (A) Charged to Costs and Expenses For the Years Ended December 31, 1980 1979 1978 Taxes Other Than Federal Income Taxes: 01arged directly to operating expenses: Other Taxes Miscellaneous Federa1 taxes S 152,859 $ 147,890 $ 120,210 Miscellaneous state taxes 46,520 45,779 46,649 199,379 193,669 166,859 State gross earnings (franchise) tax 117,693 178,641 113,990 - Municipal property taxes 1,626,214 1,118,435 1,693,904
$1,943,286 $1,490,745 S1,974,753 Charged to other accounts:
Taxes capitalized to plant 50,105 33,046 31,705 State gross earnings (franchise) tax charged to non-operating income and jobbing 501 1,530 1,086 Miscellaneous taxes charged to other accounts 2,201 2,638 3,083 52,807 37,214 35,874 S1,996,093 $1,527,959, $2,010,627 Rents Charged to Operations S 443,913 $ 430,309 $ 428,289 b (A) Anounts recorded for maintenance and repairs and depreciation are set forth separately in the Statenent of Earnings. There were X + no fees or royalties. \ l
M M M M M M M M M M M M M M M l i l i { - FITOIBURG GAS AND EIECTRIC LIGifI' ODMPANY AND SUBSIDIARY RNPlTI'ATION IN SUPPOffI' OF C.:ARNINGS PER SHARE 1 1 Year Ended December 31,
- l. 1980 1979 1978 i
(000's Onitted) l ] Net Income S1,703 S2,261 $1,960 j Less: Dividend Requirement on Preferred Stock 274 282 288 Income Applicable to Oxmion Stock S1,429 S1,979 $1,672 ] i Average Nu:nber of Conmon Shares Outstanding 513,384 455,475 455,475 5 Earnings per Average Connion Share Outstanding - $2.78 S4.34 S3.67 - i i I I 4 E a 5 O L
m M M M M M M gW W m W M M M M FITOlBURG GAS AND ELFLTilIC LIGilT ODMPANY AND SUBSIDIARY Gmputation in Support of Itatio of Earnings to Fixed Garges Year Ended December 31, 1980 1979 1978 1977 1976 (000's Onitted) Earnings: Met Income, per Gnsolidated Statement of Earnings $1,703 $2,261 $1,960 $1,200 $1,083 Income Taxes 563 948 1,220 645 891 Deferred Income Taxes 540 826 439 470) 258 Amortintion of Investment Tax Credit (85) (89) (62) (52) (49) Interest on long-tean Debt 1,611 1,499 1,515 1,527 1,316 Amortization of Debt Discount and Expense 18 20 16 17 16 Rents (annual interest component) 194 200 192 187 193 Other Interest 544 326 234 123 226
'Ibt al $5,088 $5,991 $5,514 $4,117 $3,934 Fixed Garges:
Interest on long-term Debt $1,611 $1,499 $1,515 $1,527 $1,316 Amortization of Debt Discount and Expense 18 20 16 17 16 Hents (annual interest component) 194 200 192 187 193 Other Interest 544 326 234 123 226 Tbtal $2,367 $2,045 $1,957 $1,854 $1,751 Ratio of Earnings to Fixed Garges 2.15 2.93 2.82 2.22 2.25 e L
I Exhibit 22.1 l l Subsidiaries of Registrant me Cmpany has one whollmed subsidiary, Fitchburg Energy Development , Company (FEDCO), a corporation organized urder the laws of the State of Delaware. FEDCO has invested in oil and gas grilling projects, which investnents have been recorded on the equity. The financial s w m nts of this subsidiary are included in the Company's consolidated financial statements. I I I I l I 9 I I I I l . I lI
}
I
I FITCHBURG GAS AND ELECTRIC LIGHT COMPANY I NOTICE OF ANNUAL MEETING OF COMMON SHAREHOLDERS I Canton, hiassachusetts February 25,1981 I To the Common Shareholders: You are hereby notified that the annual meeting of common shareholders of Fitchburg Gas and Electric Light Company will be held at The First National Bank of Boston,100 Federal Street, Boston, Af assachusetts, in the Auditorium on the First Floor, on Tuesday, Af arch 24,1981, at 10:30 A.Nf., for the 1ollowing purposes:
- 1. To elect two Directors.
I 2. To amend the Articles of Organization of the Company to increase the authorized capital stock by $5,911,000, consisting of 59,110 additional shares of Cumulative Preferred Stock,
$100 par value.
I 3. To further amead the Articles of Organization of the Company to give the Board of Directors the authority to make, amend or repeal the Company's By Laws to the extent permitted by the h!assachusetts General Laws, as amended, and amend Artic!c XVI of the By-Laws to reflect the same. U 4. To act on such other matters as may properly come before the meeting or any adjournments thereof. The enclosed form of proxy has been prepared at the direction of the Board of Directors of the Company and is sent to you at its request. The persons named in said proxy have been designated by the Board of Directors. IF YOU DO NOT EXPECT TO BE PRESENT PERSONALLY AND YOU WISII YOUR STOCK I VOTED AT TIIE AIEETING, PLEASE SIGN, DATE AND RETURN TIIE PROXY BY AIAIL IN TILE POSTAGE-PAID ENVELOPE SENT YOU IIEREWITII FOR TIIAT PURPOSE. IF YOU LATER FIND TIIAT YOU CAN BE PRESENT OR FOR ANY OTIIER REASON DESIRE TO REVOKE OR CIIANGE YOUR PROXY, YOU AIAY DO SO AT ANY TlhfE BEFORE IT IS VOTED. The Board of Directors fixed February 17, 1981 as the record date for the determination of I those shareholders entitled to notice of and to vote at this meeting and all persons who were holders of record of Common Stock on such date and no others are entitled to notice of and to vote at this meeting and any adjournments thereof. By Order of the Board of Directors, CIIARLES II. TENNEY 11 Chairman of the Board of Directors ANGELA P. CARLSON Clerk I ;
I FITCHBURG GAS AND ELECTRIC LIGHT COMPANY 120 ROYALL STREET CANTON, MASSACHUSETTS 02021 Februm y 25,1981 I PROXY STATEMENT I ANNt!AL MEETING OF COMMON SHAREHOLDERS, MARCH 24, 1981 I This proxy statement is furnished in c<mnection with the solicitation on behalf of the Board of Directors of proxies in the acemnpanying form for use at the 1981 annual meeting of conunon share-holders of Fitchburg Gas and Electric 1.ight Company (the " Company"). Each proxy can be revoked at any time before it is voted. Every properly signed proxy will be voted unless previously revoked. The annual report of the Company for the year 1980 is enclosed herewith and includes financial statements which are incorporated herein by reference. I The voting securities of the Company issued and outstanding on Februaiy 17, 1981 consisted of 558,477 shaies of Conunon Stock, $10 par vahie per share, entitling the holders thereof one vote per share. IIolders of Conunon Stock of record on suca date are entitled to notice of and to vote at the annual meeting and any adjournments thereof. A majority of the outstanding shares of Common Stock constitutes a iguorum. No person holds of record and, to the knowledge of management, no person owns beneficially more than five (5) per cent of the Common Stock of the Company which may be voted at the annual meeting and any adjournments thereof. The 14 Directors and officers of the Company as a group have beneficial ownership of 13,215 shares (2.37%) of Conunon Stock of the Company, of which they have direct beneficial ownership I of 2,510 shares (.45%) and indirect beneficial ownership of 10,56S shares (1.89%). To the knowledge of management, each of said Directors and officers has voting and investment power with respect to the shares directly owned. With regards to certain of the indirect beneficial ownership by said I group, see the footnotes on page 3 of this proxy statement. No Director or officer of the Com-pany has direct or indirect beneficial ownership of ane %res of either of the outstanding series of the Company's Cumulative Preferred Stock, $100 par v Assuming a <tuormn is present, the favorable vote of a majority of the shares of Common Stock represented and voting will be re<tuired for the election of Directors and for approval of any other matters which may come before the meeting, with the exception of the amendment of the Articles I of Organization increasing the anthorized capital stock described in item 2 hereof which rc<piires the favorable vote of a majority of the outstanding shares of Common Stock entitled to vote at this meeting for approval and the second amendment of the Articles of Organization relating to authorizing the Directors to make, amend or repeal the Ily-Laws described in item 3 hereof which recluires the favorable vote of two-thirds of the outstanding shares of Common Stock entitled to vote at this meeting for approval. I
I
- 1. AS TO TIIE ELECTION OF DIRECTORS The lly-1,aws of flic (:onipany provide f or a lloard of eight Directois divided into live clawes.
three a lawes ol two Dites ton each and two clawes of one Director each. with their respet live tenmes so rianged that the term of office of one claw expires in each year at which time a corres]mnding number el Directors is elected for a term of five years. At this meeting, two Directors are to he elected to hold ollice f or the ensning five years. INFORNIATION AllOUT NONilNEES FOR DIRECTollS Each nominee has been a member of the lloard of Dinetors siace the date indicated and has l W been previously elected by the common sharehohlers. Ntanagement intends to vote the proxies for hall the penons whose nanu"e an set forth below unless instructed otherwise. If either nominee be unable to serve, the proxies will be voted for such persons as may be designated by management p to repla(c such nominee. Nianagement has no reason to believe that either of the nominees is not f available or wiU not serve il elected. Unless otherwise indicated all shares shown represent sole voting and investment power. Securit;es owned Ilenclicially on l'irst - I "" 'Y 35 1983f a) Elected shares Ifenent 1975 181 C(b) .03% Thomas W. Sherman, Age 10 Dire; tor Executive Vice President and Treasurer of Ilay State Gas Company, Canton, N! ass.N. ir. Sherman is also a Director of the Company's subsidiary and a Director of Concord Elec-trie ':ompany, Concord, N.II., and Exeter & Ilampton Electric Company, Euter, N.II. (lle was aho Vice President and Trea-surer of the Company, its subsidiary, Concord and Exeter until 51 arch,1980.) 1972 100 C .02% Robert V. Shupe, Age .16 President ot H. l.. Gourley Co., Inc., Wellesley, Niass. (dis-tributors of heating, air cond'tioning and water heating equip-ment). N!r. Shupe is aho a Director of Concord Electric Com-pany, Concord, N.ll., and Exeter & llampton Electric Com-pany, Ewter, N.II. , INFORNIATION AllOUT DIRECTORS WilOSE TERNIS OF OFFICE CONTINUE Securities owned lleneficially on January 15,1981(a) Fint Tenn Elected Expires Shares Percent 1975 1983 - - Philip I1. liradley. Age 61 llesident Ntanager, Northeast, lilNI Corporation, Waltham, Ntau. (manufacture, sales and service of computcrs and other business machines). 1951 1982 25 C .00c'c Rici.ard I.. ilrickley, Age 63 1,awgr: partner in the law firm of firickley, Sears & Cole, lloston, Mass. (c). N!r lirickley is also a Director of the Company's subsidiary and a Director of Ilay State Gas Com. pany, Canton, N1 ass., Concord Electric Company, Concord. N.ll., Exeter & Ilampton Electric Company, Exeter, N.II., and Orange and Rockland Utilities, Inc., Pearl River, N.Y. 1969 1985 1,730 C(d) .31% , Iloward W. Evirs, Jr., Age 55 President of the Company; Director and President of the Companis . subsidiary.N. ir. Evirs is also a Director of Con-cord Electric Company, Concord, N.II. 2 I
a I Securities Owned Beneficially on Janeary 15,1951(a) I John Grado, Jr. Age 53 First 1976 Term Einted Empires 1955 Shares 500 C Percent
.09%
Vice President of I.itton Indmtries Inc., Fitchburg, hiass. I (a diversified industry), and chief mutive of its Paper. Printing and Forms Group Sharles II. Tennev II. Age 62 1986 1982 9,917 C(e) 1.78 % I Chairman of the Board of Directors and chi (f executive officer of the Company; Director. Chairman of the Board of Directors and chief executive officer of the Company's sub-sidiary: Director, Chairman of the Board of Directors and I chief esecutive officer of llay State Gas Company, Canton, 5f ass., Concord Electric Corr .ny, Concord. N II., and Exeter & llampton Ehetric Cor..pany, Exeter, N.II. I llobert L. Ware Age 52 Lawyer; partner in the law firm of Ware & Ware. Fitchburg, Niass. (f). Af r. Ware is also a Director of Vermont and 1967 198f 137 C .02% I Af assachusetts Railroad Company, Boston, Af ass. Notes: (a) Based on information furnished to the Company by the nominees and cerJinuing Directors. Shares of Common Stock are indicated : C and the percent shown is the percent of the total outstanding 9 shares of Common Stock. (b) Included are 125 shares (.02%) held jointly with his wife with whom he shares voting and invest-ment power. Also included are 56 shares (.01%) held in trust under the terre of the Company's I Employee Stock Ownership Plan (*ESOP'); h1r. Sherman has voting power only with respect to the shares which are credited to his account (g). (c) The firm of Hrickley, Sc.us & Cole has acted as legal counsel for the Company on various maters for many years and it is expected that such fimi will be retained by the Company in this capacky in the future. In 1%0 the Company paid $f9,209 to Brickley, Sears & Cole for legal services. (d) Included are .fl0 shares (.07%) held in trust under the terms of ESOP; Nir. Evirs has voting I power only with respect to the shares which are credited to his account (g). (c) Included are 9.532 shares (1.71%) owned by two trusts of which Af r. Tenney is Co-Trustee with I shared voting and investment povn; he has a 1/6 beneficial interest in one of such trusts and a 1/9 beneficial interest in the other and disclaims any beneficial own. ship of such shares other than such 1/6 and 1/9 beneficial interests. Also includM are 163 shares (.03%) held in trust under the terms of ESOP: 51r. Tenn :y has vot:ng power only with respect to *he shares which are credited to his account (g). (f) The firm of Ware & Ware has acted ( , ?egal counsel for the Compw/ on franchise matters for I many yeart and it is eypected that such firm will be retained by the Company in this capacity in the future. In 19so the Company paid $1,410 to Ware & Ware for legal services. (g) For further information regarding ESOP, see footnote " on page 5 hereof.
'ne Board of Directors of the Company met six tim 1s in 19S0. Alessrs. Bradley, Brickley, Evirs, Sherman, Tenney and Warc were present at all meetings, Afr. Shupe at five and Afr. Grado at four.
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I CONINinTEES OF Tile IlOAllD OF DillECTORS The Audit Committee of the lloard of Direc tors. which held twa meetings in 1950. consists of g Philip II. liradicy (Chainn.m). Itoheit V. Shnpe and Itobrit I.. Waic. cac h of w hom attended both g meetmgt The ihities of this (:onunittee encinnpaw making accommredations on the selec tion of the Cornpany's indepentlent auditors; sonictring with smh auditors icgarding, among other things, the scope of their examination. with particular emphasis on areas where special attention shouhl be [ directed; reviewing the accininting principles and practices being followed by the Company as they relate to those prevailing in the utility industry; assessing the adeeluacy of the Company's interim and annual financial statements; reviewing the Company's internal audit controls; performing such o'her duties as are appmpriate to monitor the accounting and auditing policies and procedures of the Coryany; and reporting to the full lloard from time to time. The Compensation Committee of the lloard of Directors, which held one meeting in 1950, consists of Philip 11. Ilradley (Chairman), John Grado, Jr. and Charles 11. Tenney 11, each of whom was present at the meeting. The duties of this Conunittee include studying and making recommendations to the Board with respect to salaries and other benefits to be paid to the officers of the Company. The Company does not have a nominating committee of the Board of Diretcors. HEAIUNEHATION OF DlhECTOllS AND OFFICERS Alembus of the Board of Diicetors who are not salaried o$cers of the Cmnpany receive an annual retainer fee of $MI c yable semi-annually m. January I and July 1 of ca(h year. All members of the ~ Board are entitled to receive $200 for attendance at each meeting of the Board plus reimbursement of expenses incurwd in connection with such attendance. hlembers of the Audit Conunittee of the Board of Directors receive an aOnual Audii Committee fee of $500 payable semi-annually on January I and July 1 of each year and are entitled to receive
$200 for attendance at each meeting theicof plus reimbursement of expemes incurred in connection with such attendance.
h!cmbers of the Compensation Conunittee of the Board of Directors who are not salaried officers of the Company are entitled to receive $100 for attendance at each meeting thereof. Al members of said Committee are entitled to reimbursement of espenses incurred in connection with attendance at such meetings. The tabulation below shows the aggregate cash or cash equivalent forms of remuneration received g 10m the Company during the year J950 by each Director and each of the five highest paid executive g ofIicers of the Company whose total remuneration exceeded 5.~>0,000, and to all Directors and officers as a group, and the aggregr.te of contingent forms of remuneration payable to the persons named and to said group. Aggregate of Name of Individual Capacities in Contingent or Number of which itemuneration Safaries, Forms of Persons in Group was Ileceived Fees, etc.* Ilcmt.neration*
- Iloward W. Evirs, Jr. President and Director $ 75,000 $2,901 of the Company 11 Directors and oHicers of the Company $203,773 $6,813 E as a group, including the above. named 5 person Notes:
*No Director or officer receised from the Company any cash or cash-equivalent forms of remunera-tion other than salaries, fees, etc. during 1960.
4 I I
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The Company has in effect an Employee Stock Ownership Plan (~ESOP") for eligible employees.
Each year the Company contributes to a innt for the benefit of participants an amomit expial to the ! additional imesiment f.n co-dit c lairned on its roiporate inroine t.n n tm n. The ES()P has been amended so as to pi ilmi lhc ( hinp.my to t laiin up to an athlitional %% imestment tas cicdit (ahove the 15i investment tas credit otherwise alhmable for the ESOP) for amounts contributed I by the (?ompany to the ES()P w hic h are matt hed by voluntary contiihntiom by participants. The Trmtec then invests the annmut contuhuted in shares of the Cornpany's Common Stod. During 1950, the Company contnhnted 56,336 to the ESOP which is equivalent to the additional %% l investment tas credit for the las year 1978 and, for the tas year 1979,$11.019 to the ESOP which l I_ is equivalent to the 1%CE imestment tas credit allowable for the ESOP. The shares acquired by the Trmtce during 1950 have been proportionately credited to cach paiticipant's account and are l
- held, together with any presiously medited shares, in the trmt punnant to the ESOP. The price of the shares purchased with the Company's contiihution and credited dming 1950 to the accounts of each of the officers of the Company who are participants in the ESOP is included in the above table. Directors who are not salaried officers of the Company an* not eligible to participate in the I ESOP; honeser, any Dhector who was a salaried officer at any time since January 1,1976, if eligible, was a participant in the ESOP for the period of time he was an officer.
i I I The Company has in effc(t funded Pension Plans and related Trust Agreements, which Plans pro-vide retirement annuitics for all participating employees. The Company hears the full emt of the Plans and its contribution for 1950 was 5533.915. No amounts weic set aside or accined for the I henefit of any above named penon undo any pcmion or n tirement plan escept for unidentified amounts paid into the Trust l'und pur uant to the Plans. Directors who are not and have not been officers of the Company do not participate in the Plans. The following table sets forth the estimated annual benefits (eschnite of Social Seemity payments) payable to participants in the specified remuneration and years of s<;vice classifications, aumning continued active service until retirement at normal retirement age under the Plan covering manage-ment and certain clerical employees of the C irupany and that the present Plan is in effect at such time. I Average Annual Earnings Used for Cornputin_g Pension 15 Years of Service A 20 Ycan of Scnice Ab 25 Years of Scnice 30 Years of Senice S 15,0fW) $ 2.609 $ 1,109 $ lA59 $ 5,009 25,00() 5,178 7,978 9,221 10,.171 l 50,(XN) 12.969 17,969 20c169 22,969 75,000 20cl69 27,969 31,719 35,169 l
, ifn),(XX) 27,969 37,969 12,969 17,969 l
j The formula for determining anonal benefits under the life annuity option of such Plan is (a) 2% of j average annual earnings (average annual carnings during the fise emncentive years out of the last fifteen years of emph>yment that are the highest average carnings) for each of the first twenty years of benefit service, plus (b) Ich of average annual carnings for each of the nest ten years of benefit service and (c) %Q of average annual carnings for each year of benefit service in cess of thirty, minus (d) 25% of age 63 annual Social Security benefit (as defined in said Plan) and (c) any affiliated plan benefit. based on the assumption of no change in salary and continued service m.til j normal retirement age and assuming the present Plan is in effect at such time as the officer named j above retires, .5!r. Evirs' annual pension benefit will be $ 10,370. ]
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- 2. AS TO TIIE ANIEND.\ LENT OF TIIE AllTICLES OF OllGANIZATION INCllEASING TIIE AUTIIOFIZED CAPITAL STOCK As a result of certain amendments to the N1assachusetts General 1 aws governing the capital stock of gas and c!cotric companies, the Company may now have authorized but unissued shares of stock.
Nianagement is, therefore, recommending that the common shareholders approve an amendment to the Company's Articles of Organizatica to increase the authorized capital stock of the Company by
$5,911,000, consisting of 59,110 additional shares of Cumu!ative Preferred stock, $100 par value per share, thereby increasing the r, umber of authorized shares of Cumulative Prefened Stock to 100,000 shares.
If the amendment is adopted and the number of authorized shares of Cumulative Preferred Stock is increased, there will be 60.250 authorized shares of such Stock available for future issuance. These shares woohl be issued and sold from cime to time upon vote of the lloard of Directors without further action by the sharehohlers, but only if the N1assachusetts Department of Public Utilities ("DPU") has authorized each issue and sale thereof after finding that the terms and price proposed for each such issue and sale are consistent with the public gmxl. Nianagement has no definite plans for the issuance of any of the 60,280 additional shares: however, it is probable that a portion thereof will be issued and sold through a private placement in the latter part of 1981. The Company has had no discussions and has not undertaken any negotiations in connection with this possibic sale. The pmeceds from such sale would be applied to the reduction of the Company's short-term indebtedness outstanding at that time, which indebtedness will have been incurred in connection with the Company's construction program. DESCRIPTION OF TIIE CUNIULATIVE PREFEllRED STOCK, $100 PAR VALUE General Characteristics All shares of Cumulative Preferred Stock, $100 par value, irrespective of series, shall constitute g one and the same class of stock; may be issued, as the lloard of Directors may determine, in series; g are of equal rank; and are identical in all respects except that the shares of different series may vary as to the number of shares which may be issued, the dividend rate, redemption and liquidation prices, sinking or purchase funds and any conversion or other special rights or restrictions. Dividends and distributions of assets must be gno rata in pmportion to the respective rates and amounts fixed for each series. Dividends IIolders of Cumulative Preferred Stock are entitled to receive, but only when and as declared by the Board of Directors out of funds legally available therefor, cumulative dividends at the rate fixed for the particular series, and no more, payable quarterly on the first day of N1 arch, June, Septemb(r and December in each year, before any dividends are declared or paid on Common Stock. Alter i provision for payment in full of all dividends accrued on Cumulative Preferred Stock, dividends on Common Stock may be declared and paid as the lloard of Directors may determine. Redemption Provisions If there are any dividend arrearages on the Cumulative Preferred Stock. no part less than all of the Cumulative Preferred Stock of all senies may be purchased or redeemed by the Company. Each series of the Cumulative Preferred Stock is redeemable in whole or in part at the Company's option on at least thirty days' notice at the applicable redemption price for each series plus an amount l equal to accrued and unpaid dividends. 6 l i l i l l
I Liquidation Ilights in the event of any liquidation, dissolution or winding up of the affairs of the Company, or in the I event of any distribution to holders of, or any purchase or acquisition of, shares of Common Stock or other stock ranking junior to the Cumulative Preferred Stock in respect of the distribuiton of assets, other than out of the Company's capital or capital surplus, the holders of Cumulative Preferred Stock I are entitled to receive the full distributive amounts fixed for their particular series, plus accrued divi-dends to the date of distribution, before any distribution shall be made to holders of Common Stock or other junior stock. Voting Ilights lloiders of the Company's Common Stock have general voting rights, but holders of Cumulative Preferred Stock, except as otherwise required by law, have only the voting rights set forth below. Whenever dividends on the Cumulative Preferred Stock shall have accrued and remain unpaid in an amount equal to or in excess of six qu:,rterly dividends on any series, holders of Cumulative Pre-I ferred Stock, voting as a single class, have the right to elect a majority of the Directors until all dnidends in default thereon have been paid. When the hohbrs of Cumulative Preferred Stock have the right to elect Directors, such holders shall, if there do noc exist sufficient vacancies to as to permit such holders to elect a majority of the Directors, have the exclusive right to' increase the number of Directors fmm eight to such number as will permit them to elect a majority of the total number of Diree*ars. Such right may be exercised only at a special meeting of shareholders held between annual I meetings and, at the next annual meeting of shareholders, the number of Directors shall be reduced to eight, with the holders of Cumulative Preferred Stock having the right to elect a majority thereof. When the holders of Cumulative Preferred Stock have the right to elect Directors, Directors will not be divided into classes and all Directors will be elected annually for a term of one year. Without the affirmative vote of the holders of at least two-thirds of the outstanding shares of Cumulative Preferred Stock, voting as a single class the Company shall not: (a) make any changes in the provisions of the Cumulative Preferred Stock which wouhl be substantially prejudicial to the hohlers thereof, execpt that, if such change is substantially preju-dicial to less than all series thereof, only the affirmative vote of holders of two-thirds of the series so affected shall be required; or - (b) create any class of stock ranking prior to or on a parity with the Cumulative Preferal Stock in respect of either the payment of dividends or the distribution of assets. I Without the affirmative vote of the holders of at least a majority of the outstanding shares of Cumulative Preferred Stock, voting as a single class, the Company shall not: (a) issue any additional shares of Cumulative Preferred Stock unless, after giving effect thereto, (i) net income of the Company for any period of twelve months within the next pre-I eeding fifteen months shall have been at least equal to two times the sum of the annual dividend requirements on ah shares of the Cumulative Preferred Stock (and on any class of stock ranking prior to or en a parity with the Cumulative Preferred Stock in respect of dividends or assets), which are to be outstanding after such issue; and (ii) net income cf the Company for any period of twelve months within the next pre. ceding fifteen months (after adding back interest charges on funded debt of the Company deduered ir. the computation) shall have been at least equal to one and one-half times the sum of the annual interest charges on funded debt of the Company to be outstanding at the date of such issue, plus the annual dividend requirements on all shares of the Cumulative 7
I Preferred Stock (and on any class of stock ranking prior to or on a parity with the Cumula-tive Preferred Stock in respect to dividends or assets), which are to be outstanding after such issue: and (iii) the aggregate amount of capital represented by the Common Stock and any other junior stock, plus the sum of the cap;tal surplus, earned surplus and premiums paid on capital stock of all classes of the Company, would be at least cepial to the aggregate amount g payable upon involuntary liquidation, dissolution or winding up of the affairs of the Com- g pany on all shares of the Cumulative Preferred Stock (and on all shares of stock ranking prior to or on a parity with the Cumulative Preferred Stock in respect of assets), which are to be outstanding after such issue; or (b) merge into or consolidate with any other corporation unless the same shall have been approved by the DPU or other regulatory authority having jurisdiction, and unless the Company itself he the successor corporation; or (c) sell or transfer its assets as. or subst.mtially as, an entirety. The term " sell or tramfer" fueludes a lease or exchange but does not inchide a mortgage or pledge. Preemptive Rights I The holders of Cumulative Preferred Stock have no preemptive rights. Other Provisions The outstanding shares of Cumulative Preferred Stock are, and any shares of Cumulative Pre-ferred Stock issued in the future will be, fully paid and nonassessable. The afIirmative vote of a majority of the outstanding shares of Common Stock entitled to vote at this meeting is required in order to effect this amendment. The Board of Directors recommends that the common shareholders adopt Item 2.
- 3. AS TO TIIE ANIENDNIENT OF TIIE ARTICLES OF OltGANIZATION GIVING TIIE DillECTOR AUTIIOltlTY TO hlAKE, ANIEND Olt ilEPEAL BY LAWS l
E AND TIIE ANIEND.\fENT OF TIIE BY LAWS TO REFLECT TIIE SAh!E As stated in Item 2 hereof, the Board of Directors of the Company has the authority to vote to issue additional series of the Company's Cumulative Preferred Stock without further action by the shareholders. The Articles of Organization and By-Laws-both of which contain the terms and provisions applicable 19 the Company's capital stock-also give the Directors the right to determine the provisions of the particular series of the Cumulative Preferred Stock. The By-Laws of the Com-pany, however, as presently in effect, can only be amended by vote of the shareholders whereas the Articles can be amended, in this instance, by vote of the Directors. Therefore, even though no vote l of the shareholders would be required to determine the provisions applicable to a part:cular series l W of the Cumulative Preferred Stock, it wouhl be necessary for the Company to incur the expense of l calling a special meeting of shareholders each time the Company was to issue a new series of Cumu- g l lative Preferred Stock for the sole purpose of amending the By-Laws to insert the terms of such series which would have been fixed by the Directors prior thereto. 5
.\f anagement is recommending that the Articles of Organization be amended to give the Directors the authority to make, amend or repeal By-Laws to the extent permitted by the provisions of Chapter 156B, Section 17, of the Alassachusetts General Laws, as amended. Section 1, provides that the l 8 L
I
I power to make, amend or repeal a company's by-laws is in the shareholders tmless the articles of organization authorize the directors ta make, amend or repeal them except with respect to any I provision thereof which requires action by the shareholders. The Section also requires a company to notify its shareholders of any by-law change made by the directors. Any such change so made by the directors may he amended or repealed by the sharehohlers. If this Item is adopted Article XVI of the By-Laws of the Company will be amended to read as follows (the added language appears in italics):
~1'hese By-Laws may, upon notice, he altered, amended or repealed at any meeting of the stockholders by vote of the holders of a majority of the stock represented and entitled to vote at the meeting. Nottritlutamling the foregoing, as prcridctlin the Articles of Organi:.ation, a majority I of the Directors may make, amemi or repeal these By-Lates in tchole or in part, except scith respect to any procision thereof schich by late or by the Articles of Organiwtlon requires action by the stockholders."
Management does not anticipate that the Directors will amend the By-Laws in the near future except to insert the terms of a new series of Cumulative Preferred Stock later this year as stated above. The affirmative vote of two-thirds of the outstanding shares of Common Stock entitled to vote at this meeting is required in order to effect this amendment to the Articles. I. The Board of Directors recommends that the common shareholders adopt item 3. p 4. AS TO OTHER AfATTERS TO COME BEFORE TIIE MEETING I The management does not intend to bring before the meeting any matters other than those referred to above and knows of no other matters which may come before the meeting. If any other matters or motions come before the meeting, it is the intention of the persons named in the accom-panying form of proxy to vote such proxy in accordance with their judgment on such matters or motions, meluding any matters dealing with the conduct of the meeting. I AUDITORS Upon the recommendation of its Audit Con.mittee, the Board of Directors has selected and employed the firm of Alexander Grant & Company as the Company's independent certified public accountants to audit the Company's financial statements for the fiscal year 1981. This firm has acted in this capacity for many years. A representative of Alexander Grant & Company will be present at I the annual meeting and will be available to respond to appropriate questions. It is not anticipated that such representative will make a prepared sttement at the meeting; however, he will be free to do so if he so chooses. During the fiscal year ended December 31,19S0, Alexander Grant & Company rendered auditing service relating to the financial statements of the Company and its subsidiary for the years ended December 31,1979 and 1980, reviewed quarterly and annual reports filed with the Securities and Exchange Commission, advised the Company concerning accounting and disclosure matters, examined statutory illings for the Company's employee benefit plans and issued compliance letters to note-holders. During this period, no nonaudit services were performed. 9 I
I AfISCELLANEOUS The solicitation is by the management of the Company on behalf of its Board of Directors and the expense of the solicitat'on will be borne by the Company. Such expense will also include re. imbursement for postage and clerical expenses to brokerage houses and other custodians, nominees or fiduciaries for forwarding documents to beneScial owners of stock held in their names. In addition, Directors, officers or emph>yees of the Company may solicit proxies by telephone or in person, the cost of which will be nominal. Any proposal submitted by a shareholder of the Company for inclusion in the proxy material for the 1982 annual meeting must be received by the Company at its office in Canton, hiassachusetts, E not later than 90 days prior to February 23,1982, the proposed mail:ng date for such proxy material. 3 By Order of the Board of Directors, CIIARLES II. TENNEY II Chairman of the floard of Directors I I I I I I I TIIE COh!PANY WILL FURNISII WITIIOUT CIIARGE TO ANY SIIAREIIOLDER EN. TITLED TO VOTE AT TIIE ANNUAL AfEETING OF COh!AION SIIAREIIOLDERS TO BE IIELD AfARCII 24, 1981 A COPY OF ITS ANNUAL REPORT ON FORh! 10'K, INCLUDING FINANCIAL STATE.5.fENTS AND SCIIEDULES TIIERETO, HEQUIRED TO BE FILED WITII TIIE SECURITIES AND EXCIIANGE COhlhflSSION FOR TIIE FISCAL YEAR 1980 UPON WRITTEN REQUEST TO FRANK L. CIIILDS, VICE PRESIDENT AND TREASURER, FITCII-BURG GAS AND ELECTRIC LIGIIT COhfPANY,285 JOIIN FITCII IIIGIIWAY, FITCIIBURG, Af ASSACIIUSETTS 01420. 10 I
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l l l I I g- . PROXY I FITCHBURG GAS AND ELECTRIC LIGHT COMPANY THis PR0XY 15 SOLICITED ON BEHALF 0F THE BOARD OF DIRECTORS The t,nders gned, revokng a!! preacus prcxies hereby appoints CHARLES H TENNEY ll. HOWARD W. EVIRS, JR. and FRANK L. CH'tDS, and each et them. prnoes mth poner of substitution to. eaco, te e,te arid act at the annual meeting of common I shareho;ders of FITCHBURG CAS AND flECIRlC l!GHT COVPANY to be teld at The First National Bank of Boston.100 Federal Street. Boston, Massachusetts. on Tuesday, March 24,1981, at 10 30 A.M., and at any adicarnments thereof, on and with respect to the Ccmmon Stcck cf the undcrsigned. or on and with respect to which the undersiped is entitled to vote or act, upon p the fol;omng matters:
- 1. To elect tno Directors. ('!NSTRutil0N: To withhold authority to vote for an individual nominee, strike a line through the nominee's name shown below.)
T. W. Sherman R.V.Shupe 10 amend the Articles of Organization to increase the authorized capital stock by $5,911,000 of Preferred Stock. 2. I 3. 4. To amend the Articles of Organization to give the Directors authority to make, amend or repeal Bylaws tnd amend the By Laws to reflect the same. To act on such cther matters as may properly come before the meeting or any adjournments thereof. TO ACT ON THE ABOVE ITEMS, PLEASE SEE REVERSE SIDE. THl3 PR0XT WHEN PROPERLY SIGNED WILL BE VOTED IN THE I MANNER DIRECTED. IF NO DIRECTION IS MADE, THIS PRDIT WILL BE VOTED FOR ITEMS 1,2 AND 3. (To be marked, signed and dated on reverse side) I I I ' (
-_ --_~ ---. . _ . _ _ - . _ . _ -- . - --__
i lI I I. To elect f*o Directers (For both 2. To amend the Articles of Organi 3. To amend the Articles of Organi- ' nominees except as marked to zation to increase authorized zation and Bylaws authorizing I i the contrary on the reversa capital stock Directors to change By-Laws. Side.*) FOR WITHHOLD AUTHORITY FOR AGAINST ABITAIN FOR AGAINST ABSTAIN O O O O O O O O p Date . 1981 I I :=ne.=.=.=.e= indeC&te their latif. PL EASE M AR K, SIGN, DATE AND RETURN THIS PROXY PROMPILY. 'I I I
V
,u SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 /~'} '%J Form 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) 0F THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended March 31, 1981 Commission File Number 1-7536 FITCHBURG GAS AND ELECTRIC LIGHT COMPANY (Exact name of registrant as specified in its charter)
Massachusetts 04-1328660 (State or other jurisdication of (I.R.S. Employer incorporation or Organization) Identification No.) 120 Royall Street, Canton, Massachusetts , 02021 (Address of principal executis'e offices) (Zip Code) (7
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Registrant's telephone number, including area code 617-828-8660 None Former name, former address and former fiscal year, if changed since last report. Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section If 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 f;1ing require - l ments for the past 90 days. Yes X No Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. l Class Outstanding at May 11, 1981 Common Stock, $10 par value 558,477 Shares l I V i
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p FITCHBURG GAS AND ELECTRIC LIGHT C0rfPANY AND SUBSIDIARY V INDEX Part I. Financial Information: Page No. Consolidated Condensed Statements of Earnings -- Three Months Ended March 31, 1981 and 1980......................... 3 Consolidated Condensed Balance Sheets, March 31, 1981, March 31, 1980 and December 31, 1980.................................. 4-5 Consolidated Condensed Statements of Changes in Financial Position -' Three Months Ended March 31, 1981 and 1980....... 6 Notes to Consolidated Condensed Financial Statements.......... 7-8 Management's Discussion and Anilysis of the Results'of Operations and Financial Condition........................... 9 , Exhibit 1 -- Computation of Earnings per Share. . . . . . . . . . . . . . . 10 l l
- Part II. Other information 11-13 I
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- e Part I. FINANCIAL INFORMATION FITCHBURG GAS AND ELECTRIC LIGHT COMPANY AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (V
i (UNAUDITED) Three Months Ended March 31,
- 1981 1980 Operating Revenues:
Electric $ 8,658,533 $ 8,412,000 Gas 5,983,681 5,128,390 Total Operating Revenues 14,642,214 71.,540,390 Operating Expenses: Operating expenses, other 1,695,182 1,396,189 Electricitr purchased for resale ?,858,783 4,046,706 Fuel used in electric generation 1,944,206 1,792,442 Gas purchased for resale 4,204,526 3,497,461 Maintenance 248,492 201,926 Depreciation 342,817 324,491 Amortization of cost of abandoned properties 177,826 209,577 Provisions for taxes: Federal income tax on net operating income (227,665) 138,953 State franchise (19,969) 17,921 Deferred taxes 683,852 428,510 Amortization of investment. tax credit ~ (21,600) (20,700) Local Property tax 477,721 341,783 n Other 68,500 64,561 Total Operating Expenses 13,432,671 12,439,820 QJ Operating Income 1,209,543 1,100,570 hon-operating Income: Allowance for other funds used during construction 74,708 8,618 Other (net of income taxes) 41,693 4,413 Total Non-operating Income 116,401 13,031 Gross Income 1,325,944 1,113,601 Income Deductions: Interest on long-term debt 564,001 371,823 Other interest charges 263,926 147,423 l Amortization of debt expense 5,698 4,971 l Other (18,452) (17,438) Gross Income Deductions 815,173 506,779 Allowance for borrowed funds used during construction (246,110) (130,634) Net Income Deductions 569,063 376,145 Net Income 756,881 737,456 Dividend Requirements on Preferred Stock 67,551 69,588 Net Income Applicable to Concon Stock $ 689,330 $ 667,868 l l Average Number of Common Shares outstanding 558,477 455,475 l Earnings per Average Common Share Outstanding $1.23 $1.47 Dividends Declared per share of Common Stock $1.30 $1.30 t /N (The accompanying notss are an integral part of these statements.) i FITCHBURG GAS AND ELECTRIC LIGHT COMPANY AND SUBSIDIARY CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED) March 31, December 31 1981 1980' 1980 ASSETS , Utility Plant (at cost): Electric $30,455,995 $29,756,037 $30,453,730 Gas 12,790,339 10,776,870 12,796,146 Common 1,405,181 1,398,687 1,405,181 Construction k'ork in Progress 13,525,909 5,943,039 6,564,740 Gross Utility Plant 58,177,424 47,874,633 51,219,797 Less: Accumulated Depreciation 11,239,262 10,155,338 10,899.171 Net Utility Plant 46,938,162 37,719.,295 40,320,626 Miscellanecus Physical Property (at cost) 26,005 26,005 26,005 Investments 425,433 394,122 369,519 Current Assets: ~ Cash 1,391,229 1,117,312 1,096,992 3 Accounts receivable - less allowance for doubtful accounts of $426,737,
$202,176 and $361,500 10,275,688 7,396,613 8,456,121 Refundable income taxes 656,362 54,990 397,636 Materials and supplies (at average cost) 1,102,268 940,506 829,/46 Prepayments 184,327 261,728 389,132 Property tax refunds 554,601 462,821 ,554,601 Total Current Assets 14,164,495 10,233,970 11,724,228 Deferred Debits:
Unamortized debt expense (amortized over term of securities) 379,143 270,961 385,046 Unamortized cost of abandoned properties (being amortized j through 1995) 1,938,388 2,735,980 2,116,214 Other 718,164 827,212 578,089 Total Deferred Debits 3,035,695 3,834,15., 3,079,349 TOTAL $64,589,790 $52,207,545 $55,519,727 (The accompanying notes are an integral part of these statements.)
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FITCHBURG GAS AND ELECTRIC LIGHT COMPAhT AND SUBSIDIARY l CONSOLIDATED CONDENSED BALANCE SHEETS
^ (UNAUDITED)
)
March 31, December 31 1981 1980 1980 LIABILITIES Capitalization: Common Stock Equity: Common stock, $10 par value $ 5,584,770 $ 4,554,750 $ 5,584,770 (Authorized - 1,000,000 shares) (Outstanding - 558,477, 455,475 and 558,477 shares) Premium on common stock 3,091,508 1,754,358 3,091,508 Capital stock expense (454,805) (181,737) (454,805) Retained earnings 6,428,429 6,423,848 6,532,518 Total Common Stock Equity 14,649,902 12,551,219 14,753,991 Redeemable Preferred Stock: Cumulative preferred stock,
$101 par value: 1,604,000 1,646,000 1,604,000 Authorized - 40,710 shares 5-1/8% Series Outstanding - 16,040, 16,460 and 16,040 shares .
8% Series 2,350,000 2,425,000 2,350,000
, Outstanding - 23,500, 24,250 and (3) v 23,500 shares Total Redeemable Preferred Stock 3,954,000 4,071,000 3,954,000 Long-Term Debt: (Note 1) 21,462,000 16,662,000 21,573,000 Total Capitalization 40,065,902 33,284,219 40,280,991 Current Liabilities:
Long-term debt due within one year 123,000 124,000 123,000 Notes payable to banks 9,430,000 4,040,000 1,700,000 Accounts payable 6,367,307 7,134,912 5,421,359 Customers' deposits and refunds 370,233 262,350 531,062 Taxes accrued 425,442 589,828 103,642 Deferre6 income taxes 1,108,713 486,486 488,842 Interest accrued 369,069 312,769 575,718 Total Current Liabilities 18,193,764 12,950,345 8,943,623 l Deferred Credits: l Unamortized investment tax credit 1,851,523 1,665,501 1,873,123 Other 52,726 60,533 53,301 Total Deferred Credits 1,904,249 1,726,034 1,926,424 , Deferred Income Taxes 4,363,775 4,195,647 4,309,289 ! Reserves - Other 62,100 51,300 59,400 Commitments TOTAL $64,589,790 , $52,207,545 $55,519,727 l (The accompanying vites are an integral part of these statements.) l
FITCHBURG CAS AND ELECTRIC LIGHT COMPANY AND SUBSIDIARY p CONSOLIDATED CONDENSED STATEMENTS OF CHANCES IN FINANCIAL POSITION (UNAUDITED) [ Three Months Ended March 31, 1981 1980 Funds Provided By: Ope rations : Net Inceme $ 756,881 $ 737,456 Principal Non-cash Charges (Credits) to Income: Depreciation 345,025 324,491 Deferred income taxes 63,981 73,290 Amortization of investment tax credit (21,600) (20,700) Property ta:< abatement - (122,973) Allowance for other and borrowed funds used during construction (320,818) (139,252)
> Amortization of deferred debits 194,405 265,052 Funds Provided by Operations 1,017,874 1,117,364 Increase (Decrease) in Short-term Debt 7,730,000 (1,380,000)
Total Funds Provided S 8,747,874 S (262,636) Funds Applied To: Additions to Plant $ 595,746 $ 749,276 Purchase of additir:nal interest in Seabrook Units 6,049,958 - s- Investments in Non-utility Operations 60,000 64,290 Common Stock Dividends 725,867 591,959 Preferred Stock Dividends 135,103 139,179 Funds Used for Reduction of Long-term Debt 111,000 117,000 Other applications (sources) - Net 150,074 (175,406) Increase (Decrease) in Working Capital Excluding Short-term Debt 920,126 (1,748,934) Total Funds Applied S 8,747,874 S (262,636) Increase (Decrease) in Components of Working Capital, Excluding Short-term Debt: Cash $ 294,237 $ (610,587) Accounts Fccefvable - Net 1,819,567 2,314,041 l Refundable Income Taxes 258,726 (210,000) l Materials and Supplies 272.542 62,785 L Prepayments (204,805) (568,147) ! Accounts Payable (945,948) (2,139,344) Customer Deposits and refunds 160,829 (3,675) , Taxes accrued (321,800) (421,968) i Deferred Income Taxes (619,871) (355,220) Interest Accrued 206,649 183,181 l i Increase (Decrease) in Working Capital, S '920,126 S(1,748,934) l Excluding Short-term Debt i h) (_, (The accompanying notes are an integral part of these statements.) l l
~
FITCHEURG GAS AND ELECTRIC LIGHT COMPANY AND SUBSIDIARY
/i NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS V (UNAUDITED)
Note 1 Long-term Debt: Details of long-term debt at March 31, 1981, March 31, 19"3 and December 31, 1980 are shown below: March 31, December 31,
--~ 1981 1980 1980 4-7/8% Notes due February 1, 1984 $ 3,097,000 $ 3,140,000 $ 3,140,000 9-3/8% Notes due March 1, 1995 6,748,000 6,826,000 6,816,000 10% Notes due September 1, 1996 3,000,000 3,000,000 3,000,000 10-1/4% Notes due May 1, 1999 3,740,000 3,820,000 3,740,000 15-3/4% Notes due September 1, 2000 5,000,000 -
5,000,000 Total $21,585,000 $16,786,000 $21,696,000 Less: Installments due within one year 123,000 124,000 123,000 Total Long-Term Debt $21,462,000 $16,662,000 $21,573,000 Note 2 ~ Regulatory Matters: n ( ,) Revenue Adjustments - The Company's method of billing and accounting for revenue under its fuel adjustment clause in effect January 1, 1974 through September 26, 1974 has been challenged before The Massachusetts Department of Public Utilities (DPU) by the Attorney General of The Commonwealth of Massachusetts. The required monthly fuel adjustment schedule theretofore filed with the DPU had not been dis-puted by the regulatory authority. The portion of such fuel adjustment clause revenues recorded by the Company and challenged by The Attorney General aggregates l approximately $724,000. The Company has vigorously defended its procedures in proceedings before the DPU, the outcome of which is uncertain. No provision for ! any liability that may result has been made in the consolidated financial state-ments. The Company's billing and accounting for revenues under the fuel adjustments based on costs incurred after September 26, 1974 are being made under a new
- fuel adjustment clause which took effect on September 27, 197.' and are not being challenged.
Note 3 Subsequent Event: i
- The Company is proceeding with plans to sell 125,000 shares of Common Stock l in an underwritten public offering. The selling price of the shares will be
! determined immediately prior to the offering on the basis of the then current l market price. The sale of the Common Stock is subject to the approval of the Department of Public Utilities of the Commonwealth of Massachusets.s. i (N.-'/)
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I
-s Note 4 Commitments:
On January 26, 1979, the common shareholders approved the acquisiton of an additional 0.4332% ownership interest in each of the Seabrook Units from The Connecticut Light and Power Company ("CL&P"). On March 25, 1980, the common shareholders approved the acquisition of an additional 0.26087% ownership in each of the Seabrook Units from Public Service Company of New Hampshire C'PSNH"). The purchase of both additional interests, representing an additional 16 megawatts, was approved by the DPU on October 30, 1980 and has been excluded from the information presented herein. The purchase from CL&P increasing the Company's ownership interest in the Seabrook Units was consummated on January 30, 1981. The purchase from PSNH increasing the Company's ownership interest in the Seabrook Units is being phased in over the twelve-month period, February, 1981 through January, 1982. Note 5 In the opinion of the Company, the accompanying unaudited condensed financial statements contain all adjustments (consisting of only normal recurring ac-cruals) necessary to present fairly financial position as of March 31, 1981 and 1980 and the results of operations for the three months ended March 31, 1981 and 1980 and changes in financial position for the three months ended March 31, 1981 and 1980. , The results of operations for the three months periods ended March 31, 1981 and 1980 are not necessarily indicative of the results to be expected for the full year. i O
. _ _ . . , - = _ - . . . . . - -_. -. . _ - . , . _ - -- , , . - - -
Management's Discussion and Analysis of Results of Operations
,_ and Financial Condition (d Operating Results Earnings per average common share for the first quarter of 1981 amounted to
$1.23, on a larger number of shares outstanding, coepared with $1.47 for the first quarter of 1980. Net income for the three months ended March 31, 1981 reflects an increase in the allowance for funds used during construction resulting from the purchases of increased interests in the Seabrook Units, a significant increase in interest expense due to higher balances of long-term and short-term debt outstand-ing used to finance the Seabrook purchases and the Company's ongoing construction program and a 10.5% MCF decrease in gas cales and an 8.4% KWH decrease in electric sales. Despite the declines in unit sales, both gas and electric operating revenues increased during the first quarter of 1981, compared to the same peric$ last year, primarily as a result of passing increased energy costs through the adjustment clauses.
Operating expenses have risen over the comparable period of 1980 primarily because of higher property local taxes resulting from the City of Fitchburg's adoption of tax classification, legal fees associated with a suit challenging property tax classification, higher anticipated losses from bad debts and general increases due to inflation. Financial Condition Capital expenditures for the first quarter of 1981 amounted to $6,645,700 of which $6,049,958 represented the purchases of additional interests in Seabrook discussed above.
& The unbilled revenue for the first quarter of 1981 has increased by $1,272,835 from the December 31, 1980 balance. This increase has occurred primarily due to the higher cost of purchased power and fuel used in generation and to lower KWH sales than estimated, despite a significant increase in fire MCF sales.
The Company funded, through a sale and leaseback arrangement, a new service center costing approximately $2,700,000 for an initial term of 22 years. When internally generated funds are not available, the Company follows a policy of borrowing on a short-term basis to meet its capital requirements, and at the appropriate time, converts : ts short-term indebtedness into senior capital. l l The size and ticing of such financings will depend on developments in the security l markets and the ability to meet financing covenants. The Company is planning to j file with the Securities and Exchange Com=ission, a preliminary prospectus for the l issuance of 125,000 shares of Common Stock. The Company is monitoring its financial situation very closely to determine the timing and the amount of any future rate filing. sJ
PART I -- EXHIBIT 1 FITCHBURG GAS AND ELECTRIC LIGHT COMPANY AND SUBSIDIARY Computation in Support of Earnings per Share (UNAUDITED) Three Months Ended March 31, 1981 1980 Net Income $ 756,881 $ 737,456 Less: Dividend Requirements on Preferred Stock' 67,551 69,588 Net Income Applicable to Common Stock $ 689,330 $ 667,868 Average Number of Common Shares Outstanding 558,477 455,475 Earnings per Average Common Share Outstanding $1.23 $1.47 O O O
*"""4'" ' ' __. _ . _ _ _ - - _ - _ _ _ _ . - . _ _ _ . . _ - . . _ _ . .
PART II -- 01HER INFORMATION
/% Item 4. Subcdssion of Matters to a Vote of Security Holders.
(a) Date of the Meeting and whether it was an annual or special meeting. Annual shareholders' meeting held March 24, 1981 (b) 1. Directors elected at the meeting: Thomas W. Sherman Robert V. Shupe
- 2. Other 71 rectors continued in office:
Philip H. Bradley Richard L. Brickley Howard W. Evirs, Jr. John Grado, Jr. Charles H. Tenney II Robert L. Ware (c) 1. That the Articles of Organization of the Cocpany be amended to increase the authorized capital stock of the Company by
$5,911,000, consisting of 59,110 shares.of Cumulative Preferred Stock, $100 par value; and further N
That, in order to accomplish the foregoing, the President or any Vice President and the Clerk or any Assistant Clerk of the Company be and they are hereby authorized to execute appropriate Articles of Amendment of the Articles of Organi-zation of the Coepany under Chapter 164, Section 8B, of the General Laws of The Commonwealth of Massachusetts and cause the same to be filed with The Secretary of The Commonwealth and with The Massachusetts Department of Public Utilities. There were 316,019 affirmative votes, 34,665 negative votes and 57,281 abstaining votes cast on this matter.
- 2. That the Articles of Organization of the Company be amended to give the Board of Directors of the Company the authority to make, amend or repeal the Company's By-Laws to the extent permitted by the provisions of the Massachusetts Gene.*al Laws, as amended; and further That, in order to accomplish the foregoing, the President or any Vice President and the Clerk or any Assistant Clerk of the Company be and they are hereby authorized 65 execute appropriate Articles of Amendment of the Articles of Organization of the Company under Chapter 164, Section 8B, of the General Laws of The Commonwealth of Massachusetts and cause the same to be filed with The Secretary of The Commonwealth; and further
That, effective when the aforementioned articles of Amendment of the Company's Articles of Organization are filed with The Secretary of The Commonwealth, Article XVI of the By-Laws of f)
\s /
the Company as presently in effect be and hereby is amended to read as follows:
"These By-Laws may, upon notice, be altered, amended or repealed at any meeting of the stockholders by vote of the holders of a majority of the stock represented and entitled to vote at the meeting. Notwithstanding the foregoing, as provided in the Articles of Organization, a majority of the Directors may make, amend or repeal these By-Laws in whole or in part,except with respect to any provision thereof which by law or by the Articles of Organization requires action by the stockholders."
There were 315,539 affirmative votes and 36,533 negative votes cast on this matter. However, the amendment was not approved since the vote on this matter lacked the required two-thirds of the outstanding shares of Common Stock entitled to vote at this meeting. Item 6. Exhibits and Reports on Form 8-K (a) Part I Exhibit
- 1. Computation of Earnings per Share (b) The Company did not file'any reports on Form 8K for any of the three months ended March 31, 1981.
O 8
i
- j. -
! SIGNATURES
- l Pursuant to the requirements of the Securities Exchange Act of 1934,
- the registrant has duly caused this report to be signed on its behalf by i the' undersigned thereunto duly authorized.
i FITCHBURG GAS AND ELECTRIC LIGHT COMPANY (Registrant) i l Date May 11, 1981 Frank L. Childs i Frank L. Childs (Vice President and j Treasurer) (Principal Financial Officer) i I e f , l Date _ May 11, 1981 Edward D. McKenzie Edward D. McKenzie (Assistant Treasurer) i l 4 l
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FROSPECTUS O 125,000 Shares Fitchburg Gas and Electric Light Company Common Stock ($10 Par Value) TIIESE SECURITIES IIAVE NOT BEEN APPROVED OR DISAPPROVED BY TIIE SECURITIES AND EXCIIANGE COh1hflSSION NOR IIAS TIIE COh1511SSION PASSED UPON TIIE ACCURACY OR ADEQUACY OF Tills PROSPECTUS. ANY REPRESENTATION TO Tile CONTRARY IS A CRIh11NAL OFFENSE. Price to Underwriting Proceeds to Public Discount (1) Company (2)
'N Per Share $19.00 $1.03 $17.97 -
Total $2,375,000 $128,750 $2,246,250 (1) The Company has agreed to indemnify the several Underwriters against certain civil liabilities, including liabilities under the Securities Act of 1933. (2) 3efore deduction of expenses payable by the Company estimated at $180,000. The Common Stock is ofTered, subject to prior sale, when, as and if issued by the Company and
) accepted by the Underwriters, and subject to approval of certain legal matters by their counsel, and by counsel for the Company. The Underwriters reserve the right to withdraw, cancel or modify such offer and to reject orders in whole or in part. It is expected that delivery of the Common Stock will be made in New York, New York, on or about June 23,1981.
Merrill Lynch White Weld Capital Markets Group Merrill Lynch, Pieree, Fenner & Smith Incorporated l/S The date of this Prospectus is June 16,1981
IN CONNECTION WITII TIIIS OFFERING, TIIE UNDERWRITERS SIAY OVER-ALLOT OR EFFECT TRANSACTIONS WIIICII STABILIZE OR AIAINTAIN TIIE SIARKET PRICE OF TIIE CO.\l.\10N STOCK OF TIIE CO.\lPANY AT A LEVEL ABOVE TIIAT WIIICII AfIGIIT OTIIERWISE PREVAIL IN TIIE OPEN AIARKET. SUCII TRANSACTIONS AIAY BE EF-FECTED ON TIIE Ah!ERIC/.N STOCK EXCIIANCis, TIIE BOSTON STOCK EXCIIANCE OR OTIIERWISE. SUCII STABILIZING, IF CO.\L\1ENCED, AIAY BE DISCONTINUED AT ANY TLNIE. i I AVAILABLE INFOR.TIATION Fitchburg Gas and Electric Light Company (the " Company") is subject to the informational re-quirements of the Secunties Exchange Act of 1931 and in accordance therewith files reports and other information with the Securities and Exchange Commission (the " Commission"). Certain information, as of particular dates, c<meerning its directors and officers, their remuneration and certain other bene- i fits, its principal holders of sccurities and any material interest of such persons in transactions with the Company is disclosed in proxy statements distributed to common shareholders of the Company and filed with the Commission. Such proxy statements, reports and other ir, formation may be inspected and copied at the public reference facilities maintained by the Commission at Room 6101,1100 L Street, N.W., Washington, D.C.; at Room 1201, Everett AlcMinley Dirksen Building, 219 South
Dearborn Street,
Chicago, Illinois; at Room 1100, Federal Building, 26 Federal Plaza, New York, New York; and at Suite 1710, Tishman Building,10960 Wilshire Boulevard, Los Angeles, California, and copies of such material can be obtained from the Public Reference Section of the Commission at 500 North Capitol Street, Washington, D.C. 20519 at prescribed rates. No dealer, salesman or any other person has been authorized to give any information or to make any representations, other than those contained in this Prospectus, in connection with the offer made by this Prospectus, and, if given or made, such information or representations must not be relied upon as having been authorized by the Company or the Underwriters. This Prospectus does not l constitute an offer to sell, or a solicitation of an offer to buy, in any jurisdiction in which such offer or solicitation may not be law fully made. TABLE OF CONTENTS 1 l Page Page The Issue in Brief . 3 Business 13
)
The Company 4 Operating Statistics 23 I Use of Proceeds 5 hiap of Service Area , 25 j Construction Program 5 Afanagement 26 i Financing Requirements . 7 Description of Common Stock 27 Common Stock Dividends 8 Legal Opinions 28 Price Range of Common Stock . 8 Experts 28 l Capitalization . 9 Report of Independent Public Accountants 28 I Selected Financial Data 10 WF MS 20 hianagement's Discussion and Analyns of Re-suits of Operations and Financial Condition. 11 Underwriting 45 ( 2 O (i {
k i TIIE ISSUE IN BRIEF
/ The following material is qualified in its entirety by the detailed information and the I
financial statements and notes appearing elsewhere in this Prospectus. The Offering Company . Fitchburg Gas and Electric Light Company Common Stock Offered . . 125,000 shares Number of Common Shares to be Outstanding after the Offering 6S3,477 Use of Proceeds To reduce short-term debt (incurred for con-struction program) Common Stock Listed American and Boston Stock Exchanges (symbol FGE) 1950-1981 Price Range (through June 15, 1981) 26 % -17 % Closing Price as of June 15,1981 19 The Company Business . Generation, transmission, purchase, distribu-tion and sale of electric energy; purchase, I distribution and sale of gas Service Area (see Afap of Service Area) Approximately 170 square miles in north cen-tral hiassachusetts i Service Area Population Apprcximately 80,000 l Customers (h! arch 31,1981) Approximately 22,411 (electric); 14,422 (gas) Operating Revenue Distribution (twelve months ended Alarch 31,1981) Electric- 63%; Gas - 37Fo Summary FinancialInformation Twelve s Year Ended December 31, k Marca 31,1981 1980 1979 (Unaudited) Statements of Earnings (in thousands, ex-cept per share amounts): Operating Revenues $43,412 $42,310 $34,261 Net Income $ 1,723 $ 1,703 $ 2,261 Net Income Applicable to Common Stock .. $ 1,451 $ 1,429 $ 1,979 Average Number of Common Shares Outstanding 539 513 455 Earnings per Average Common Share Outstanding -$2.69 $2.78 $4.34 Dividends per Common Share . $2.60 $2.60 $1.90 As of March 31,1981 (Unaudited) Percent of Adjusted Adual As Adjusted
- C_apitalization*
Capitalization (in thousands): Long-term Debt (including current maturities) . ... ...... ..... .. $21,5S5 $21,585 50.9 % Redeemable Cumulative Preferred Stock 3,954 3,954 9.3% Common Stock Equity 14,650 16,900 39.8 % Total Capitalization $40,189
,$42,439_ 100.0 %
- As adjusted for estimated net proceeds from the sale of additional Common Stock being offered hereby.
4 v 3
l TIIE CO.\1PANY The Company, a 51assacimsetts corporation incorporated in 1852, is an operating public utility pro-viding electric and gas service t9 the communities of Fitchburg, Ashby, Lunenburg and Townsend and gas service only to the communities of Gardner and Westminster. The service area encompasses approximately 1~0 square miles in north central .\tassachusetts. The Company's main office is located at 2S5 John Fitch Ilighway, Fitchburg, Stassachusetts 01420, and its principal executive ofIlee is at 120 Royall Street, Canton, Ni tssachusetts 02021; telephone number (017) 828-8660. Problems of the Utility Industry and the Company The Company, as well as the electric and gas utility industries in general, continues to experience significant problems in a nmnber of areas including (a) attracting capital on reasonable terms (see
" Financing Requirements"), (b) an uncertain rate of growth of electric energy sales due to changing economic conditions, energy conservation measures by customers and pmposed governmental energy conservation programs (see " Business-Electric Operations and Energy Supply"), (c) current and prospective limitations on gas supply (see " Business - Cas Operations and Supply"), (d) increased fuel {
costs and diminished availability of certain fuels (see " Business - Fuel Supplc"), (c) licensing, reguia-tory and other delays affecting the construction of new facilities, including controversies related to the use of nuclear power (see " Construction Program" and " Business- Nuclear Lwensing") and (f) the necessity for large scale construction during an inflationary period (see " Construction Program" and
" Business -Joint Projects and Other Plans").
The Company has an arrangement to purchase electricity produced by a nuclear generating plant. The Company also has participating interests in other nuclear generating plants in New England which are either under construction or planned (see " Business-Joint Projects and Other Plans"). The events at the Three Alile Island nuclear generating facility in Pennsylvania ("Th!I") have prompted a rigorous reexamination of safety related equipment and operating procedures in all r.uclear facilities and have generated a multiplicity of legislative proposals in Congress and various state legislatures. The ultimate effect of these reexaminations and pmposals cannot be predicted at the present time. Cancellation of the projects in which the Company has participating interests could result in substantial cancellation charges against the Company and might, in the absence of adequate rite treatment, have a material adverse impact on the Company's financial condition and future earnings. 'See "r.mstruc-tion Program" and " Business - Nuclear Licersing".) Because of the substantial portion of electric operating revenues derived by the Company from sales to industrial customers, a decline in the national ce4momy affecting such customers has had an adverse effect upon electric Lilow att-hotr "WII") sales and the Company's carnings, In addition to the factors discussed above, the Company's gas business, " well as the gas utility industry in general, faces several potential pmblems, particularly: (a) competition from other energy i sources, (b) delivery of gas by suppliers on a timely basis, (c) curtailments of gas supply, and (d) government deregulation of the well head price of natural gas. hiany gas utility companies, including the Company, rely upon supplemental gases, such as lique-fled natural gas (" LNG") and propane, to augment their pipeline supplies during the winter months. During the 19S0-1981 heating season, a delay in the delivery of Algerian LNG caused by adverse . weather conditions in January,19S1, coupled with one of New England's coldest December-January l periods in many years, drastically reduced the supply of supplemental gas to many gas utilities in New England. The Governor of hiassachusetts mandated that all residential customers turn down their thermostats to 63 and all commercial and industrial customers turn down their thermostats to 55*, and further requested those customers with duni fuel capability to switch to the other source of fuel. These measures provided sufficient gas supplies for utilities in the New England region, including the Company, until additional deliveries could be made. 4
/ Cas utilities are subject to curtailments of pipeline gas by their suppliers. The Company has not l
C] experienced any large curtailment of gas since the winter of 1979 and does not expect that curtallments will be a serious problem in the near future. i 1 USE OF PROCEEDS The net proceeds to the Company from the sale of 'he additional Common Stock being offered hereby (the " Additional Common Stock"), estimated at $2,250,000, will be applied to the reduction l of short-term bank borrowings incurred in connection with the Company's construction program (see " Construction Program", " Financing Requirements" and " Business-Joint Projects and Other l Plans"). Short-term borrowings at Afarch 31,1981 were $9A30,000 and such borrowings are anticipated to approximate $10,500,000 immediately prior to the delivery of the Additional Common Stock, at which time the Company will have expended approximately 65% of its 1981 construction program budget. The Company believes it has the ability to Snar.ce the remainder of its 1981 construction program through internally generated funds. I CONSTRUCTION PROGRAh! During the period from January 1,1976 through December 31, 1960, the Company made gross additions to and normal retireme,ts from plant,incInding an allowance for funds used during construc-tion ("AFUDC") (see Tote 1 to the Consolidated Financial Statements) of approximately
$18,800,000 and $1,659,000, respectively. The Company estimates that its construction program will require expenditures of approximately $54,6S7,000 (including AFUDC of approximately $17,524,000) during the five years from 1981 through 19S5, of which approximately $16,016,000 is expected to be incurred in 1981, $9,972,000 in 1982, $11,2SO,000 in 1983, $8,391,000 in 19S4 and $9,028,000 in 19S5.
These estimates include (i) the cost of facilities being constructed by the Company, (ii) the Com-pany's share of construction costs related to the four jointly-owned nuclear projects in which the Company has an ownership interest, and (iii) expenditures for at least an initial nuclear core for v each such project. The following table sets forth information as of April 30, 1981 with respect to the four nuclear generating facilities now planned or under construction in which the Company has joint ownership interests: l Company's Share (l) Estimated Expendi. Total Estimated Proportionate Amount tures Estimated Construc-Joint Estimated Share of Expended for the Cust of tion Ownership In-Service Total through Next 5 Construe. Cost per ) Units Location Date(2)(3) Ownership 12/31/80 Years (3) tion (3) KW(3)
% KW (In thousands)
Seabrook Units #1 & #2 (*]pshire : 0.865 19,900 $2,883 $35,373 $39,565(4)(5) $1,988(4)(3) { htdistone Unit #3 Connecticut 5/86 0.217 2,500 2,317 5,892 8,741(5) 3,496(5) l Pilgrim Unic #2 . Afassachusetts 12/85 (6) 0.19 2,200 996 2,853 6,168 2.804 [ $6,196 $44.118 $53474 l }' (1) A substantial portion of these expenditures consists of AFUDC. These expenditures also include at least an initial nuclear core for each Unit. (2) These estimates are based in each case upon the most recent ofBeial estimate of the utility superviring construction of the particular Unit. Certain of these Units hat ; not yet been granted all approvals, permits and licenses necessary for construction by the relevant state and Fedend cuthorities. There is no assurance that the approvals, permits and lienses will be obtained, or that, it obtained, they will not be modified or revoked. In addition, the completion of certain of these Units has been [ intermittently deferred and additional deferrals may occur in the future due to licensing delays, { V] economic conditions and other factors. 5
(3) Estimates of construction expenditures relating to the projects shown above are based upon the most recent information furnished by the utility supenising the construction of the Unit. The Company has been advised by the supervising participant for each pmiect that construction budgets are continually updated in light of increased costs due 6 deferrals, delays and other factors. These estimated construction expenditures, as so upd M1, uay be predicated upon different in-service dates than those specified above. In particular, the estimated costs of the Seabrook Units give effect to the recent annual overall review of the construction budget of the Units and the reduced level of Sea-bnmk construction (see " Business - Joint Projects and Other Plans"). (4) These amounts are lower than previous estimMas made by the Company. Public Senice Company of New Ilampshire ("PSNII"), the lead panicipant in the Seabrook Units, informed the Company in April,1981 that it had revised the estimate,1 in-service dates for these Units to February, 19S4 and Niay,19S6, respectively. Previous estimates of the amounts in the table were based on December,1984 and December,19S6 estimated in-service dates, respectively. If the Company had used such dates in the table, these amounts would be approximately $43,568,000 and $2,204, respec-tively. (5) On June 5 and June 10, 1981, respectively, the Company received revised estimated costs ( of construction from PSNH with respect to the Seabrook Units and from Northeast Utilities, the parent company of the lead participants in hiillstone Unit No. 3, with respect to such Unit. As a result of tb revised estimates, the Company's total estimated costs of construction have increased since April 30,19S1 (the date as of which such amounts are set forth in the table) by leu ' cn $1,000,000 (2.6Tc) for the Seabrook Units and bs than $100,000 (1.2Fo) for hiilistone Unit No. 3. (6) Boston Edison Company (" Boston Edison"), the supervising participant in Pilgrim Unit No. 2, has released information to the effect that the December,1985 in-service date cannot be met because Boston Edison has been unable to obtain a construction permit from the Nuclear Regulatory Commission ("NRC") and the NRC has not announced a definite schedule for the granting of such a permit. Coston Edison has announced that it is continuing to review the feasibility of the project on an ongoing basis and, when a more definitive schedule is determined for the granting of a con-struction permit, it will be able to develop revised cost estimates and financing plans. At that time it will decide whether to cancel or continue construction of the Unit. In addition, the Department of Public Utilities of He Commonwealth of h!assachusetts (the "DPU") has deferred action relating to approvals necessary before the construction of Pilgrim Unit No. 2 can be commenced. The December, 19S5 in-service date is based on Boston Edison's most recent formal notiScation; however, because Boston Edison has been using a November,19S7 date for planning purposes, the dollar amounts in the table reflect such date. The complexity of present-day electric utility technology and the time required for the construc-tion of generating facilities and completion of licensing and other regulatory proceedings relating thereto, have compelled the Company, as well as other electric utilities, to make substantial invest-ments in nuclear facilities prior to the completion of licensing and regulatory proceedings. Cancella-tion of any of the four nuclear generating projects for any reason, including the inability to obtain necessary permits or sufficient financing, could result in substantial and possibly unrecoverable charg'es against the Company's income. These charges could include the amounts incurred by the Company ; prior to cancellation, cancellation penalties and other charges. The scheduling of each of these Units, and the right to cancel the Unit, are the responsibility of the particular New England utility which is supervising const= tion of the Unit; the determination to cancel a Unit can be made without the j consent of the other participating utiTes, including the Company. In particular, on December 31, 1030, Northeast Utilities, the parent company of the lead par-ticipants in hfontague Units No. I and No. 2 (two additional nuclear facilities in which the Company was to participate), cancelled the construction of these two Units because the capacity was no longer ( required by Northeast Utilities. The Company's total expenditures on Afontague Units No. I and No. 2 through the date of such cancellation were approximately $207,000 after giving effect to tax savings and deferred taxes of approximately $S7,000. f 6 l I
r In the event that any other Unit identifico in the table above is ultimately cancelled, the Company would request DPU permission to amortize its gross expenditures relating to such , cancelled Unit over a suitable period and thereby achieve, in the ormion of the management of the Company, adequate rate treatment. A similar request relating to the Company's partici-pation in the now cancelled Charlestown Units No.1 and No. 2 was granted by the DPU (see
" Business-Joint Projects and Other Plans"). In addition, a similar request relating to the Com-pany's participation in the now cancelled .\fontague Units No. I and No. 2 was granted by the DPU (see " Business - Joint Projects and Other Plans"). In the event any of the Units identified in the table 4 is ultimately cancelled, the magnitude of the Company's final costs, and the extent to which rate relief would permit recovery of these costs, cannot be determined at this time.
Assuming completion of construction and the ongoing operation of all the nuclear generating Units described c. hove, approximately 2.:% of the Companyi New England Powcr Pool ("NEPOOL") obligation (see " Business-New egland Power Pool") at the date of completiv of the last Unit sometime in the late 1950's would be provided by nuclear power. I FINANCING REQUIREAIENTS A portion of the Con pany's cash requirements for its 1981 construction pragram will be provided through internally generated funds and short-term borrowings. Other than the issuance of the Addi-tional Common Stock, the Company's plans for permanent financing for the remainder of 1981 have not yet been definitively formulated. The Company presently contemplates a financing program during the years 19S2 through 19S5 that will include the sale of additional securities, the amounts and types of which have not been determined. Following are summaries of certain provisions of the Company's note agreements, indentures, Articles of Organization, and By-Laws (all of which are qualified in their entirety by reference thereto) which can affect the Company's ability to issue additional securities. Under the agreements and indentures pursuant to which the Company's long-term notes are , outstanding, additional Funded Debt (as defined in such agreements and indentures) may not be issued if (i) the Funded Debt of the Company outstanding immediately thereafter shall exceed 55% of the Company's Capital Account (as defined) computed immediately thereafter and (ii) Earnings Available for Interest (as defined) shall not have teen equal, for at least twelve consecutive calendar months out of the fifteen months next preceding the creation of such Funded Debt, to at least 200% of dl amounts of interest for which the Company will annually thereafter be obligated on account of all j Debt (as defined) to be outstanding immediately thereafter. Earnings Available for Interest (as l defined in such agreements and mdentures) includes AFUDC. Pro Fonna Earning Available for Interest amounted to 145% of such interest for the year ended Afarch 31, 1981, and Funded 1 Debt represented 50.9% of the Company's Pro Forma Capital Account at h! arch 31,1981, after giving effect to the issuance of the Additional Common Stock and the reduction of the Company's short-term ' debt from the estimated net proceeds thereof. Accordingly, no long-term debt eculd have been issued ! at such date under the more restrictive test specified in (ii) above. - Under the terms of the Company's Articles of Orgaaization, the Company has authority to issue l 99,820 shares of Cumulative Preferred Stock, $100 par value, of which 39,540 shares were issued ai d I outstanding on h! arch 31, 1981. The Board of Directors of the Company fixes the terms and price i proposed for each series thereof, which are subsequently submitted to the DPU for approvel. There-
.fter, prior to the issuance of any additional shares of such Stock, action by the common shareholders is required ta amend the By-Laws of the Company in order to insert therein the terms of the series to be -
issued.The terms of the Cumulative Preferred Stock also provide that the approval of a majority of the hows of all outstanding series of such Stock is required for the issuance of additional shares thereof # unless the following " coverage" requirements are satisfied: (i) net income of the Company for any G period of twelve months within the next preceding fifteen months sht 'l have been at least equal to two times the sum of the annual dividend requirements on the Cumulative Preferred S . k and on all shares of stock ranking prior to, or on a parity with the Cumuletive Preferred Stock as to dividends or , 7 h
distribution of assets then to be outstanding: (ii) net incoma of the Company for a similar period (after adding back interest charges on Funded Debt of the Company deducted in the computation) shall have been at least equal to one and one-half times the surn of the annual interest charges on Funded Debt of the Company to be outstanding at the date of such issue plus the annual dividend requirements on the Cumulative Preferred Stock and on all shares of stock ranking prior to, or on a parity with, the Cumulative Preferred Stock as to dividends or distribution of assets, then to be outstanding: and (iii) the aggregate amount of capital represented by the Common Stock and any other stock ranking junior to the Cumulative Preferred Stak in respect of the distribution of assets plus the sum of capital surplus, carned surplus and preminen on capital stock of all classes of the Company (see Note 3 to " Capitalization") would be at let
- aqual to the aggregate amount payable upon involuntary liquidation, dissohition or winding up of the sffairs of the Company on the Cumula-tive Preferred Stock and all shares of stock ranking prior tc or on a parity with the Cumulative Preferred Stock then to be outstanding. At hiarch 31,1981, the Company could not have issued any I additional Cumulative Preferred Stock without approval of a majarity of the holders of the outstanding Cumulative Preferred Stock voting as a class.
COhlh10N STOCK DIVIDENDS The Company has paid regular dividends on its Common Stock since 1859. Such dividends on an annual basis increased from $1.41 in 1976 to $1.44 in 1977, to $1.50 in 1978, to $1.90 in 1979, and to $2.60 in 19S0. A quarterly dividend of $.65 per share ($2.60 annual rate) was declared by the Board of Directors at its Afarch 24, 1981 meeting payable Afay 15, 1981 to holders of record of Common Stock on hiay 1,1981. It is the intention of the Board cf Directors to continue to pay cash dividends on its Common Stock on a quarterly basis. IIowever, future dividends will necessarily be dependent upon the Company's earnings, its financial condition and other factors (see "hf anagement's Discussion and Analysis of Re-sults of Operations and Financial Condition"). See " Description of Common Stock" regarding cert,ain restrictions upon the payment of dividends. PRICE RANGE OF COhlhiON STOCK The Common Stock of the Company is listed on the American and Boston Stock Exchanges. The high and low per share sales prices of the Common Stock, reported by The Wall Street Journal as American Stock Exchange transactions through January 23,1976, and as composite transactions there-after, were as follows: mgh Iow Ingh & l 1976 16 % 13 % 1980 1977 17 % 15 % 1st Quarter 23 % 18 % 1978 19 15 % 2nd Quarter . 23 % 19 % 1979 3rd Quarter 26 % 22 % 1st Quarter 19 16 4th Quarter 23 20 % 2nd Quarter . 18 % 17 1981 3rd Quarter 21 % 17 % 1st Quarter 21 % 18 % 4th Quarter 19 % 17 % Rnd Quarter j (through June 15, 1981) 19 % 17 % j
%e last reported sale price of the Common Stock on June 15, 1981 on the American Fock Exchange was $19.00 per share.
The Additional Common Stock to be offered hereby is to be sold at a price per share to the Company which is less than the book value per share of its Common Stock at hfarch 31, 1981 which was $26.25. Such book value, as adjusted to give effect as of that date to the issuance of the {' Additional Common Stock (assuming net proceeds to the Company of $18 per share), would be
$24.73 per share. Any future sales of Common Stock at e price which is less than the book value per share will result in further dilution of such book value.
8
g CAPITALIZATION \ The capitalization of the Company as of Afarch 31,19S1, and as adjusted for the issuance of 125,000 shares of the Additional Common Stock,is as follows: March 31,1981 Adjusted (1) Amount Amount Percent (In tho==A) Long-term Debt (including current maturities) $21,585 $21,585 50.9 % Redeemable Cumulative Preferred Stock, $100 Par Value Authorized,40,710 shares 5%% Series: Outstanding,16,040 Shares 1,604 1,604 8% Series: Outstanding,23,500 Shares . 2,350 2,350 Total Redeemable Cumulative Preferred Stock . . 3,954 3,954 9.3% Common Stock Equity V Common Stock, $10 par value Authorized,1,000,000 shares Outstanding, 558,477 shares (2); ad-justed 683,4T7 shares 5,585 6,835 Premium on Common Stock (3) 3,091 4,341 Capital Stock Expense . (455) (705) Retained Earnings . 6,429 6,429 Total Common Stock Equity 14,650 16,900 39.8 % Total Capitalization . $40,189 $42,439 100.0 % (1) Assumes net proceeds of approximately $2,250,000 from the sale of the Additional Common Stock. (2) Not reflected herein are an additional 6,998 shares of Common Stock authorized to be issued from time to time in connection with the Company's Tax Reduction Act Employee Stock Ownership Plan. (3) ~ Premium on Common Stock'is sometimes referred to as " Additional Paid-in Capital". On hfarch 31, 1981, outstanding short-term indebtedness totaled $9,430,000, approximately O $2,250,000 of which is to be repaid from proceeds of the sale of the Additional Common Stock. V 9 l
SELECTED FINANCIAL DATA The following is a summary of certain financial information of the Company and its consolidated subsidiary, The information presented for the years 1970 through 1980 has been selected by manage-ment from financial statements which have been examined by Alexander Grant & Company, indepen-dent certified public accountants, whose report thereon, which contains a qualification of opinion as is stated therein, appears elsewhere in this Prospectus, The information presented for the twelve months ended .\tarch 31,19S1 has been selected by manageeient from the unaudited financial statements for the twelve months ended .\farch 31,10S1 appearing elsewhere in this Prospectus. In the opinion of management, all adjustments (consisting only of normal recurring accruals) necessary for feir presentation of the consolidated financial position and results of operations for such twelve-month period have been included. Ilesults for the twelve months ended .Nfarch 31, 1981 are not necessarily indicative of the results for the year ending December 31,1981. For further information see the con-solidated financial statements and related footnotes. Twelve Afonths Year Ended Deember 31, Results of Operations Ended (In thomands, except per share amounts) Afarch 31,1991 1950 1979 1978 1977 1976 ( Unaudited) Operating Revenues: Electric $28,772 $28,525 $24,475 $21,158 $19,061 $16,601 Cas 14,040 15,785 9,786 7,920 6,861 5,698 Total Operating Revenues $43,412 $42,310 $34.261 $29,078 $25,922 $22,299 Electricity Purchased for Resale $13,328 $ 13,516 $10,470 $ 8,538 $ 8,210 $ 6,390 Fuel Used in Electric Generation 3 5,069 $ 4.917 $ 3,402 _$ a.,159 _$ 2,083 $ 1,869 G;s Purchased for Resale $ 9,879 $ 9,172 $ 5,851 $ 4,335 $ 3,709 $ 2,986 Local Property Tax $ 1,~62 $_1,626 $_l,118 $ 1,694 il_,J5 _$_l,384 AFUDC: Borrowed and Other Funds $ 973 $ 792 $ 629 $ 416 $ 248 $ 135 Net Income $ 1,723 $ 1,703 $ 2,261 $ 1,960 $ 1,200 $ 1,083 Dividend Requirements on Preferred Stock 272 274 282 2S8 290 291 Net income Applicable to Common Stock $ 1,451 $1,429 $ 1,979 $ 1,672 $ 910 $ 792 Average Number of Common Shares Out-standing 539 513 455 455 455 455 Earnines per Average Common Share Out- - standing , $2.69 $2.78 $4.34 $3.67 $2.00 $1.74 Dividends Declared per Common Share $2.60 $2.60 $1.90 $1.50 $1.44 $1065 Balance Sheet Data (In thousands) Utility Plant (at co t) $58,177 $31,22 $47,141 $44,461 $41,100 $39,829 Aaumulated Depreciation $11,239 $10,899 $ 9.850 $ 9,194 $ 9,020 $ 7,125 Total Assets $64,590 $35,520 $50,813 $44,225 $42,435 $39,271 Capitalization and Short. term Notes: Common stock equity $14,650 $14,754 $12,545 $11,430 $10,440 $10,185 Redeemable preferred stock $ 3,954 $ 3,954 $ 4,071 $ 4,188 $ 4,230 $ 4,272 Long-term debt $21,462 $21,573 $16,780 $16,978 $17,176 $17,294 Short-term nctes payable $ 9,430 $ 1,700 $ 5,420 $ 970 $ 2,500 $ 300 10 0
i l
/7 AfANAGEhtENTS DISCUSSION AND ANALYSIS V OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION Operating Results Net Income declined during 19S0 by approximately $558,000 (25%). Earnings per average common share for 19S0 were $2.78, on a larger number of shares outstanding, as compared to $4.34 in 1979. This decrease is primarily due to reduced firm sales caused by the economic recession, higher interest costs and a large increase in property taxes.1979 carnings per share increased by 18% over the 1978 Icvel primarily due to the abatement of property taxes.
Electric Operating Revenues increased approximately $4,050,000 (17%) in 19S0, despite a de-crease (tNo) in KWII sales. The net effect on revenues was primarily attributable to an increase of approximately $4,463,000 in fuel costs for generation and energy costs of purchased power, which are passed on to customers through the operation of a cost of fuel adjustment clause; and a decrease in industrial sales amounting to approximately $409,000 due to the effects of the recession. Electric Operating Revenues increased $3,317,000 (16%) in 1979, despite a slight decrease in KWII sales. This increase in revenues was primarily attributable to an increase of approximately $3,021,000 in fuel costs for generation and energy costs of purchased power, which are passed on to customers through the operation of the above-mentioned clause and to the net effect of two factors: the full year effect of the rate increase approved by the DPU on October 5,1978 resulting in an increase of approximately $213,000 and a strike that halted production by one of the Company's major industrial customers thereby lowering the Company's revenues by approximately $50,000. Gas Operating Rev-enues increased approximately $3,999,000 (41%) in 1980, primarily due to the effect of four factors: an increase of approximately $2,313,000 in the cost of purchased gas which is passed on to customers through the operation of a cost of gas adjustr ent clause; an increase of approximately $618,000 in off-system sales; an increase of 191,331 t?.ousand cubic feet ("h!CF") of gas through interruptible sales, resulting in an approximate increase of $517,000; and higher firm gas sales, due to the Com-U pany's marketing program, of 216,920 h!CF, resulting in an increase of about $400,000. Gas Operating Revenues increased approximately $1,S66,000 (24%) in 1979 primarily due to the net effect of three factors: an Lcrease of 391,2S9 AfCF in interruptible sales, resulting in an increase of approximately
$1,270,000; the increased cost of purchased gas which is passed on to customers through the operation of the above-men'ioned clause, resulting in an increase of approximately $903,000; and a decrease in off-system sales of approximately $410,000.
Electricity Purchased for flesale increased approximately $3,043,000 (29%) in 19S0 over 1979, and approximately $1,932,000 (23%) in 1979 over 1978. The 19S0 and 1979 increases reflect an increase in the per unit energy cost of approximately 1.lc (33%) and .7c (27%), respectively.1978 expenses had increased primarily due to a greater reliance on electricity purchased from other utilities. Fuel Used in Electric Generation increased approximately $1,515,000 (45%) in 1980 due to the escala-tion in the costs of fuel used to generate a level of KWII slightly lower than that of 1979. Costs in j 1979 rose by approximately $1,243,000 (58%) due to the same reasons as in 1980. Gas Purchased for Resale increased by approximately $3,321,000 (57%) in 19S0 over 1979 and by approximately
$1,516,000 (35%) in 1979 due to (i) higher prices charged by the Company's pipeline supplier, (ii) the increasing unit cost of the Company's supplemental gases and (iii) an increase of 550,745 (24%) in h1CF sales in 19S0 and an increase of 280,725 (14%) in AICF sales in 1979.
Operating Expenses, Other increased by approximely $441,000 (9%) in 19SO over 1979 princi-pally due to an accounting adjustment, required by the Federal Energy Regulatory Commission (the "FERC"), higher tree trimming costs, and operating expenses associated with the continuation of the gas conversion program (see " Business-Gas Operations and Supply"). Increases in 1979 of approx-imately $299,000 (6%) are associated with lease obligations, hourly wage rates, increased pension and insurance costs and other cost mercases that reflect the continuing effects of inflation. hiaintenance Expenses have risen over the last several years due to higher wage rates and the continuing effects of V inflation. 11 1
Amortization of Cost of Abandoned Properties increased by approximately $167,000 (25%) in 1980 due to the first full year's effect of the amortization of Charlestown Units No. I and No. 2. The increase of approximately $61,000 (10Tc) in 1979 was due to the first full year's effect of the amortiza-tion of one of the Company's generating units, Generating Uni No. 6, and two months amortization of Charlestown Units No. I and No. 2. The increase of approximately $423,000 (245%) in 1973 was due to the commencement of amortization of Unit No. 6. Allowance for Other and Borrowed Funds Used During Construction has generally increased since 1976 due to the Company's continued invest-ment in jointly-owned electric generating facilities under construction. In addition, the increase in interest rates has had a significant impact on these amounts. Federal Income and State Franchise Tax fluctuations are due primarily to changes in taxable income. Federal income tax in 1979 reflects a reduction in the Federal tax rates. Deferred income taxes increased considerably in 1979 from 1978 principally due to the book abandonment of the proposed nuclear generating plants, Charlestown Units No. I and No. 2, and the major repair of the Company's gas turbine. In 1950, deferred taxes decreased because the amortization of deferred taxes provided on previously abandoned units ex-ceeded that deferred on current abandonments ( Afontague Units No. I and No. 2) and the reversal of the timing difference arising from the use of different book and tax methods in providing for uncollectible accounts. Local Property Taxes in 1950 increased by approximately $264,000 (19%) over 1979 principally due to the increased property tax levy of oser 20re in the City of Fitchburg and due to tax classifica-tion, which shifts the property tax burden to the industrial and commercial property owners from the residential property owners (see Note 12 to the Consolidated Financial Statements). The 1979 decrease of .$332,000 (20%) from 197S is principally due to a property tax settlement agreed to by the City in October 1979. The Company in 1979 received abatements with a value of approximately $734,000, of which $244,000 pertained to the 1978 period. These abatements increased 1979 net income by $376,000 or $.83 of earnings per average common share. The Company anticipates that future levels of property tax expense will continue to reflect the lower assessed vahiation resulting from this settlement. The 1978 increase of $165,000 (11%) over 1977 was due to the acquisition of the electric facilities purchased on June 1,1977 from New England Power Company. Other Interest Charges increased by approximately $219,000 (67%) in 1950 and by approxi-mately $92,000 (39%) in 1979 due to increased interest expenses related to short-term borrowings required to finance the Company's construction program and to a higher level of average daily short-term borrowings. Average daily bank borrowings were approximately $3,067,000, $2,441,000 and $1,492,000 for the years 1950,1979 and 197S, respectively. Average daily interest rates on these bor-rowings on an annual basis were 14.4Tc,13.0% and 8.6% for each of the years 1950,1979 and 1978, respectively. Changes for the twelve-month period ended Alarch 31,19S1, compared to the year ended December 31,1950, primarily reflect the factors discussed above relating to changes for the year ended December 31,19S0, compared to the year ended December 31,1979. Financial Condition The liquidity and canital . esources of the Company, like most electric utility companies, are influenced most signifi. ly by construction required to provide the environmentally-acceptable facilities needed to meet ,he anticipated energy needs of its customers. The rate-making practices of most utility regulatory commissions, including the DPU, effectively require substantial external financing of the investment in additional facilities and equipment. In addition, these practices gen-erally provide that the financing costs of construction projects be treated as part of the cost of the new facilities. The inclusion of financing costs in the cost of new facilities is accomplished by recording AFUDC (a non-cash credit) in the Statement of Earnings (see Note 1 to the Consolidated Financial St<tements). Although this accounting treatment allows recovery of the cost of construction funds 12
IO through depreciation over the life of the facilities, the recording of the income credits is not immedi-ately accompanied by cash flow. As a result, the quantity of earnings may not be greatly reduced during periods of heavy construction but the cash fic.v content c! earnings is reduced. Low internal cash eneration requires a large proportion of external financing to support the construction program. Consideration of liquidity and capital resources for electric utility companies must primarily be directed toward an assessment of continued ability to attract the capital necessary to support the con-struction program. Capital expenditures in 19S0 were up by 17% over 1979 primarily due to the continued invest-
' ment in jointly-owned generating plants and, to a lesser extent, the gas conversion program. The increase of approximately $6,957,000 in utility plant and approximately $7,730,000 in short-term notes payable at h! arch 31, 1931 compared to December 31,19S0 is primarily due to the acquisi-j tion by the Company of the additional ownership interest in Seabrook Units No. I and No. 2 in February,1981 (see " Business-Joint Projects and Other Plans').
Because of its commitment to Seabrook Units No. I and No. 2 and other jointly-owned nuclear [ generating plants, the Company has forecast a cash construction budget of approximately $13,912,000 exclusive of AFUDC for 1981, of which approximately $11,801,000 consists of investment in the jointly-owned nuclear plants (see Note 9 to the Consolidated Financial Statements for further details). The Company's total cash commitment toward these Units is estimated to be approximately
$32,000,000, excluding AFUDC.
f The payment at maturity of $3,011,000 of the Company's long-term 4%% Notes will be made in 1984. This is the Company's only major long-term debt coming due during the next five years. Re-demptions of other long-term Notes will be made to satisfy several annual sinking fund requirements during this period. Oj When internally generated funds are not available, the Company follows a policy of borrowing on a short-term basis to meet its capital requirements, and at the appropriate time, converts its short-term indebtedness into senior capital. The size and timing of such financings will depend on developments in the security markets and the ability to meet financing covenants (see " Financing Requirements'). In 19S0, the Company issued 100,000 shares of Common Stock to the public at a price of $23.00 per share and issued 3,002 shares in connection with the Company's Tax Reduction Act Employee Stock Ownership Plan at $22.375 per share. The Company also sold privately $5,000,000 of its 15%% Notes due 2000. The Company's new service center, costing approximately $2,700,000, is being funded through a sale and leaseback arrangement, entered into in February,1981, for an initial term of 22 years. The Company has a 25 year lease on a combustion turbine and LNG storage facility which commenced in 1973. The Company leases other equipment including its new computer system. It is vital to the interests of both the Company's shareholders and customers that income from operations be adequate to permit financing of the capital expenditures necessary to meet its service requirements. To achieve a satisfactory level of earnings, the Company is monitoring its financial situation very closel) '.o determine the timing and the amount of any future rate filings. hiassachusetts statutory law requires that a decision must be rendered by the DPU within six months from the date a company files for a rate increase. BUSINESS
. General The Company is an operating public utility company engaged in supplying electricity and/or gas p in various communities in north central Afassachusetts. The utii. ated population of the Company's service area is 60,000. Electric and gas businesses accounted or the following percentages of the Com-(
13
1 l l l pany's total operating revenues and operating income before deducting income taxes in the twelve month period ended March 31,19S1 and the years 1976 through 1950. Year Ended December 31, nd Afarch 31,1991 1990 1979 1978 1977 1976 Total Operating Revenues Electric 66To 67 7o 71 % 73ro 74ro 74 7o Cas 34 7o 33Co 29 70 27 7o 26To 26To Total Operating Income (before deducting income taxes) Electric 63 % Giro 74ro 76 % 75 7o Siro Cas 37Fe 39 7o 2Gre 24ro 25Fo 19 % For further information with respect to the Company's operation by industry segment, see Note 11 to the Consolidated Financial Statements. Territory Served Electric service is supplied by the Company to approximately 22,340 customers in the communities of Fitchburg, Ashby, Townsend and Lunenburg. For the year ended December 31,19SO, 53.79o of the electric operating revenues was derived from industrial sales, 31.0G from residential,11.5% from commercial,1.Oro from other utilities and 2.S% from miscellaneous sources. The Company's sales to its largest industrial customer represented approximately Sro of electric operating revenues for 19S0, while sales to the Company's ten largest industrial customers represented, in the aggregate, approximately Siro of electric operating revenues. As of December 31,19S0, approximately 40ro of industrial revenues was accounted for by paper manufacturing and allied products companies. An aggregate of 257o of industrial revenues was distributed among rubber and plastic manufacturers, fabricated metals products and non-transportation equipment, non-electrical machinery, chemical products and primary metals industries. The remaining 33ro of industrid revenues was accounted for by miscellaneous manufacturers, including producers of textile mill products, apparel ar.d other finished products made from fabrics, and by printing, publishing and allied industries. For the year ended December 31,1950 average revenues per KWII sold to industrial, residential and commercial customers were 6.69 cents,9.07 cents and 0.61 cents, respectively. Gas service is supplied by the Company to approximately 14,2SO customers in the communities of Fitchburg, Lunenburg, Townsend, Ashby, Gardner and Westminster. For the year ended Decem-ber 31,19S0, 49.Oro of the gas operating revenues was derived from residential sales,13.2ro from inturuptible sales to industrial customers (which are sales to customers who possess alternative energy sources and who use gas on an as.available basis),16.0"o from firm sales to industrial custom-ers,14.8% from commercial sales and 7.Oro from other sources. As of December 31,19S0, revenues from interruptible sales made up approximately 457o of total industrial revenues. Approximately 16To of totalindustrial revenues was derived from firm sales to paper manufacturing and allied prod-ucts companies. The remaining 397o of total industrial revenues was derived from firm sales to fabri-cated metal products manufacturers, rubber and plastics manufacturers, primary iron manufacturers and miscellaneous industries. For the year ended December 31,19S0, average revenues per MCF sold to residential, inter-ruptible, firm industrial and commercial customers were approximately $5.25, $3.07, $5.27 and $4.S9, respectively. 14
l New England Power Pool V The NEPOOL agreement, to which the major imestor-owned electric utilities in New England, including the Company, and certain municipal and cooperative utilities are parties, has been in effect since 1971. The objectives of NEPOOL are: (a) to assure that the bulk power supply of New England ) and any adjoining areas served conforms to proper standards of reliability, (b) to attain maximum practicable economy consistent with such proper standards of reliability and (c) to provide for equitable sharing of the resulting benefits and costs. These objectives are achieved through joint planning, central dispatching, cooperation in emironmental matters, coordinated construction, opera-tion and maintenance of electric generation and transmission facilities and coordination with other power pools and utilities situated in the United States and Canada. Substantially all planning, operation and dispatching of electric generating capacity for New England is done on a regional basis under NEPOOL. At the time of the 19S0-1981 NEPOOL winter peak, the NEPOOL members had approxi-mately 21,741 hlW of installed capacity to meet the New England peak load of about 15,620 h!W. The NEPOOL agreement imposes generating capacity reserve obligations and provides for the use of major transmission and distribution facilities and payments associated therewith. The Com-pany's capability responsibility under NEPOOL involves carrying an allocated share of a New England capacity requirement which is determined for each six-month period based on certain regional relia-bility criteria. Electric Operations and Energy Supply The Company has a 4.5% interest (20,115 KW) in an oil-fired generating plant in New IIaven, Connecticut, which is operated by The United 111uminating Company as the majority owner. The Company also has a 0.1822% interest (1,120 KW) in an oil-fired generating plant in Yarmouth, Afaine, widch is operated by Central h1aine Power Company as the majority owner. In addition, the Company v operates under a long-term financing lease an oil-fired combustion turbine electric peaking generator with a current capability of 27,910 KW, In addition, the Company has two longterm contracts to purchase power from nearby utilities. The first contract, which expires in 19S6, is for the purchase of 40,000 KW from Boston Edison. The supply of energy under this contract is dependent upon the operating capability of the following four Boston Edison units at 10,000 KW cach: Pilgrim Unit No 1, New Boston Unit No.1, New Boston Unit No. 2, and hfystic Unit No. 7; the first is a nuclear unit, the latter three are oil-fired units.
'Ihe contract provides that, in the event of a reduction in power supplied, the Company will be entitled to a ratable share of the supplier's NEPOOL entitlement associated with the supplying unit.
The second contract is with the Afaine Electric Power Company, Inc. ("h!EPCO*) and provides for the purchase of 3,0SO KW through October,1985 with provisions for earlier termination. AfEPCO ! purchases its power under a long-term contract from the New Brunswick Electric Power Commission (a Canadian governmental entity). As part of the Company's arrangement to purchase power from I hlEPCO, the Company is obligated to make certain support and other payments in accordance with the 51EPCO agreement. The two purchase power contracts require the Company to pay monthly demand and transmission charges regardless of whether or not it purchases any energy and to pay an energy charge for each KWII of electricity it does purchase. The Company also has agreemeris to swap power with nearby utilities. A contract with Green hiountain Power Company provides for swapping of 14,910 KW of cff. peak power (when available) for 14,910 KW from the Company's combustion turbine. This contract is subject to ter-mination on 30 days' notice. An agreement with Northeast Utilities provides for the exchange of 13,000 KW from its Northfield hiountain pump storage hydro-generating plant for 13,000 KW from the Company's combustion turbine. This is a week.to-week oral agreement and can be ended pI by mutual agreement. i J 15
I The three oil-fired plants, together with the agreements discussed above, provide the Company with an approximate net capability of 92,225 KW. The maximum one-hour demand for the Company, exclusive of sales to other utilities, occurred on August 16, 1978 and was 75,330 KW. The Com-pany's current operational capability is in excess of its customers' present requirements. Based on the Company's current expectation that load requirements will grow at approximately two percent per year, the Company will be able to provide its projected capability responsibility to NEPOOL through the 1985-86 power year (which capability responsibility will equal approxi. mately 94,300 KW, including a reserve beyond the Company's load requirements of approximately 17,000 KW, during that power year). In order to assure adequate capability beyond the 19S5-1986 power year, to avoid the necessity of reactivating the Company's oil-fired stand-by capability and the necessity of entering into short-term purchase power contracts, the continuing availability of which may be limited by circumstances beyond the Company's control, to minimize the Company's depend-ence on fossil fuels and to provide long-term base load capability at the lowest possibla cost, the Company has entered into agreements for the partial ownership of four nuclear facilities and is currently exploring the possibility of utilizing coal, cogeneration, hydro-electric and other power from renewable resources. The ability of the Company to meet its NEPOOL capability responsibility will depend on many complex factors, including (1) the state of the economy as it affects load growth, (2) when the nuclear facilities in which the Company has an ownership interest, especially the Seabrook Units, become operational, (3) whether the Company requests and is granted DPU permission to reactivate its stand-by capability, (4) the continuing availability of purchase power contracts to meet short-term de-ficiencies in NEPOOL capability responsibility, and (5) the results of the Company'3 current examina-tion of the possibility of obtaining power from coal and renewable resc,arces, including cogeneration and hydro-electric generation sources. The NEPOOL agreement provides for fines in the event a participant fails to meet its obligations and removal from NEPOOL if such failure is due to the participant's negligence. For further information, see " Electric Operating Statistics". Joint Projects and Other Plans The Company has entered into agreements for the partial ownership of four nuclear facilities which are expected to commence commercial operation at various times from 1984 through 1987 (see "Consauction Program"). As a participant in each project, the Company is a tenant in common l and is severally obligated for all liabilities of each project in proportion to its ownership shares. The Company has also agreed to abide by the decisions of the lead participant on all significant matters. The Company's combined share of the output of the four nuclear units is expected to be approximat y 24,600 KW, including the two additional ownership interests in each of the two Seabrook Units discussed below. The Campany had also entered into an additional contract with respect to the partial ownership of the proposed Charlestown Units No.1 and No. 2 nuclear generating facilities. On October 9,1979 the lead participant, New England Electric System, through its subsidiary, New England Power Company, announced the indefinite deferral of the in-service dates of these two Units, and subsequently exercised its right under the Charlestown ownership agreement to terminate the project. On November 27,1979 the DPU approved the Company's request to amortize over a 36 month period approximately $653,000 (including AFUDC) representing the Company's gross expenditures in the Charlestown Units prior
.a termination of the project. In the opinion of the management of the Company, this form of rate treatment is adequate to insulate the Company's earnings from any significant effects of these expendi-tures. The Company will request DPU permission to apply similar treatment to any additional costs resulting from its association with these Units.
16
The Company had also entered into a contract with respect to the partial ownaship of the [V ,) proposed Montague Units No.1 and No. 2 nuclear generating facilities. On December 31,1980, the lead participants exercised their right under the Montague ownership agreement to terminate the project. On April 24, 1981 the DPU approved the Company's request to amortize over a 60 month period approximately $207,000, representing the Company's gross expenditures including AFUDC less previously deferred income taxes and related tax savings (approximately $87,000) in the Montague Units prior to termination of the project. In the opinion of the management of the Company, this form of rate treatment is adequate to insulate the Company's earnings from any significant effects of these expenditures. The Company is unable to estimate with certainty the amount of additional charges, or , possible cost recovery, which may result from the cancellation of these two Units. IIowever, the Com-pany expects to request DPU permission to apply similar treatment to any additional costs resulting l from its association with these Units. l The Company has acquired additional ownership interests in each of the two Seabrook Units from two sources, The Connecticut Light and Power Company ("CL&P") and PSNII. On January 20, 1979, the common shareholders approved the acquisition of an additional 0.43332 % ownership I interest in each of the Seabrook Units from CL&P. On March 25,19S0, the common shareholders approved the purchase of up to an additional 0.260S7% ownership interest in each of the Seabrook Units from PSNII. The Company received approval from the DPU to purchase both additional interests on October 30,19S0. The transfer of the interest from CL&P took place on January 30,1981. The interest from PSNII is being transferred to the Company over a twelve month period beginning February,1981. The Seabrook Units will each have an expected net capability of approximately 1,150 MW. With the acquisition of the additional ownership interests, the Company will be entitled to 0.86519% of each Unit's output, which entitlements are estimated to total 19,900 KW. It is anticipated that p the additional intuests in the Seabrook Units will partially replace capacity covered by existing pur-(dl chase power contracts which will be expiring in the mid 19S0's (see " Business-Electric Operations and Energy Supply"). The most recent estimate, received in June,1981, from PSNII, the lead participant, indicates that the Seabrook Units will be constructed at a total cost, including at least an initial nuclear core, of approximately $2,657,000,000 (excluding AFUDC). All approvals and permits from state and Federal regulatory bodies required for construction of the Units have been obtained and construction is in progress. The obtaining of these approvah and permits has been opposed by a number of intervening groups and demonstrators at the Seabrook site and has been time-consuming, resulting in significantly increased costs for the project. Several court appeals from the Fedeial regulatory approvals are pending. Fuel Supply Oil. Substantially all the Company's clutric power is purchased from other utilities in the New England area (see " Business-Electric Operations and Energy Supply"). 'Ihese New England elec-i tric utilities make greater use of fuel oil for generation of power than those in other regions of the country. Most fuel oil supplies of the New England utilities are acquired from foreign sources and are subject to interruption and price increases by foreign governments. The combustion turbine leased by the Company currently operates exclusively on oil and is primarily used for peak-load operation. The Company has no long-term contracts for oil supply. Should it be necessary for the Company to reactivate its currently deactivated fossil-fueled generating plant (see " Business-Electric Operations and Energy Supply"), the Company would attempt to insure a supply of oil by entering, to the extent possible, into long-term contracts and bulk fuel pur-(] v chases, for which the Company has adequate storage facilities. 17
While the Company intends to make substantial replacements of power derived from oil with l power derived from nuclear and renewable sources, the Company cannot predict with certainty l whether or when such replacements will be effected (see " Construction Program" and " Business- l Joint Projects and Other Plans"). l Nuclear. The Company has been advised by the companies planning or constructing the nuclear generating Units in which the Company has an interest that such Units have contracted for certain segments of the nuclear fuel production cycle (see " Business-Joint Projects and Other Plan.") through various dates. This cycle includes, among other things, mining, enrichment and disposal or reprocessing of used fuel. The Company has been informed that each nuclear project in which it has an interest has contracted for at least an initial core of enriched radioactive material necessary for fuel assembly. Contracts for various segments of the fuel cycle will be required in the future, and their availability, prices and terms cannot now be predicted. The Company is not aware of any contractual arrangements for reprocessing of spent fuel and there are no reprocessing facilities currently operating in the United States. Former President Carter had stated the position of his Administration to be that the United States should indefinitely defer commercial reprocessing and recycling of spent nuclear fuel. If such services are not available when required for the Units in which the Company has an interest, the spent fuel can be stored pendieg reprocessing or disposal. The cost of long-term storage of nuclear wastes is not known at the present time. The Company cannot predict at this time what ditliculties will be encountered regarding dis-posal of nuclear waste. The NRC, along with other Federal agencies, is in the process of developing regulations and guidelines in this area. The Company expects that the Units in which it has an interest will develop plans for the disposal of nuclear wastes after promulgation of these regulations and guidelines; such plans will be subject to regulatory approvals. Gas Operations and Supply Gas is distributed to the area served by the Company through approximately 2S9 miles of steel, cast iron and plastic mains. The maximum sendout in 1980 occurred on December 25,1980 when a new Company record of 17,722 AICF was achieved. The maxirrum sendout to date occurred on January 4,1981 when a new Company record of 19,721 NICF was achieved. The Company purchases natural gas from Tennessee Gas Pipeline Company (" Tennessee") under a firm contract which provides that the Company may take up to 7,506.\fCF of gas daily. This contract expires on November 1,2000, but will continue beyond this expiration date until terminated by either party on twelve months
- written notice.
Beginning in January,1974, Tennessee began to curtail deliveries of gas due to increased overall demand in excess of pipeline capacity. All of Tennessee's curtailments are currently being made pur-suant to a curtailment plan filed with the FERC on September 28, 1973, approved by the FERC on Af arch 14,1977, and modified from time to time thereafter with FERC approval. The maximum annual quantity which the Company can purchase under this plan (volumetric purchase limitation) is 2,734,215 hICF. There wer- no pipeline curtailments of gas deliveries to the Company below the volumetric pur-chase limitation for the period from November 1,1980 through Alarch 31,1981. No curtailments below the volumetric purchase limitation are anticipated for the peric ] from April 1,1981 through October 31,1981. Tennessee's most recent supply forecast filed with the FERC indicates that no curtailments below the volumetric purchase limitation are anticipated during the period from Novemler 1, 1981 through Af arch 31,19S2. The possibility and exNnt of any future curtailments, however, cannot be predicted at this time. Under govereing FERC otA. ions, Tennessee has the right to increase such curtailments. Previous curtailments by Tennessee have caused the Company to reduce interruptible sales (see " Business -Territory Served"). To the extent necessary, the Company intends to continue 10
'p to make such interruptions. He Company is seeking to obtain additional gas supplies in order to minimra the effects of any future curtailments. Although the Company can continue to provide an adequate mpply of gas to its firm customers by reducing interrtptible sales when necessary, such reductions have an adverse impact on the Company's earnings. f The Company has an underground gas storage ccmtrac' with Consolidated Gas Supply Corpora-tion (" Consolidated") by which Consolidated provides approximately 50,000 AfCF of underground storage to the Compaay for a twenty-year period beginning August 1,19S0. The Company has also executed a precedent agreement with Penn-York Corporation ("Penn-York"), formerly National Fuel Gas Storage Corporation, by which Penn-York proposes to provide approximately 300,000 AfCF of underground storage to the Company. He agreement expires on April 1, 2000. The Company has also executed a precedent agreement with Tennessee to transport all the gas which is intended to be stored by Consolidated and Penn-York. The necessary applications to provide each of these services have been filed with and noticed by the FERC, and it is anticipated that the requisite approvals will be forthcoming. As a supplement to natural gas, the Company has a propane air gas plant with a daily production
! capacity of 7,200 h!CF and a storage capacity of 29,725 h1CF. The Company also has a leased LNG storage and vaporization facility with a daily production capacity of 7,200 htCF and a storage capacity of 4,167 h!CF. These plants are used primarily during peak load periods to augment the supply of natural gas.
The Company has a contract to purchase 133,0 2 8 AfCF natural gas equivalent of liquid propane each winter season from C. Af. Dining, Incorporated, which will expire Af arch 31,19S5. Under the
; terms of this contract, the Company is required to purchase 60% of the total amount and has the option to purchase the remaining 40%.
i The Company also has a contract to purchase 50,459 htCF natural gas equivalent of liquid pro-1 pane each winter season from Petrolanc-Northeast Gas Service, Inc. ("Petrolane"), which will expire V on h! arch 31, 1985. Under the terms of this contract, the Company is required to purchase 60% of 1 the total amo mt and has the option to purchase the remaining 40%. In addition, the Company has a contract with Petrolane, which will expire on Afarch 31,1982, providing for the storage by the Com-pany v ith Petrolane of 58,464 AICF natural gas equivalent of liquid propane, and for the purchase of 44,643 hiCF natural gas equivalent of such liquid propane from Petrolane. The Company has an additional contract to purchase 165,000 AICF natural gas equivalent of supplemental gas each winter season from Bay State Gas Company, which will expire on Alarch 31, 19S8, but will continue beyond this expiration date until terminated by either party on twelve months written notice. Under the terms of this contract, the Company is required to purchase 75% of the total amount and has the option to purchase the remaining 25%. During the summer of 19S0, the Company stored approximately 71,000 h!CF natural gas equiva-lent of LNG at a storage facility owned by The Brooklyn Union Gas Company (" Brooklyn Union"). Brooklyn Union arranged ior the Company to receive an equivalent amount of LNG from Diarigas of Afassachusetts Corporation during the 19S0-1981 winter season. The Company has the option to enter into a similar arrangement with Brooklyn Union this year. If curtailments by Tennessee of pipeline deliveries of natural gas do not increase significantly beyond presently indicated levels, and if LNG and liquid propane continue to be available from market sources, the capacities of the Company's LNG and propane facilities, together with the natural gas available under the contract with Tennessee, are expected to provide adequate gas supplies to fulfill the requirements of all existing firm customers served by the Company. Here can be no assur-ance, however, that limitations on interruptible service will not continue to increase or that future restrictions will not be imposed on firm customers. Gas utility companies, including the Company, have experienced a large growth in firm sales prMsrily due to the conversion of residential customers from oil to gas as fuel. These conversions 19 i i
have taken place in the last several years due to the substantially lower price of gas. However, as deregulation of gas prices takes effect and the conversion market becomes saturated, growth is expected to become less significant. For further information, see " Gas Operating Statistics". Regulation and Rates The Company is subject to regulation by the DPU with respect to retail rates, adequacy of service, issuance of securities, accounting and other matters. The Company is also subject to regulation by the FERC with respect to certain matters, including NEPOOL interchanges and other wholesale srles of electricity. As part of such regulation, representatives of the FERC conduct regular audits of the Company relating to the Company's overall compliance with the accounting and reporting require-ments of the FERC. The most recent FERC audit, completed in 19S0, covered the period 1975-1979. The Company's retail electrie and gas sales are made pursuant to rate schedules on file with the DPU at rates which call for lo ver unit prices as monthly usage increases. Until 1972 the Company had nct requested a general rate increase in 52 years and during that period had made several voluntary rate reductions. During recent years the Company has sought rate relief designed to cover the impact of increased costs. The amounts of rate relief granted by the DPU from October 15,1974 to date are set forth below: Type of Amount Amount Effective Date Department Increase Requested Granted October 15, 1974 Electric Permanent $2,300,000 $2,096,000(1) January 12,1976 Gas Permanent 663,000 349,451 January 12,1976 Electric Permanent 793,000 793,000 September 15,1977 Gas Permanent 838,000 553,734 October 5,1978 . Electric Permanent 2,795,000 1,804,180(2) (1) Includes the $1,000,000 requested and the $767,500 interim electric rate relief granted effective April 21,1974. (2) $1,062,109 was granted effective September 19,1977. The e!ectric rate schedules of the Company for all retail sales are subject to a cost of fuel adjust-ment by which rates are modified to reflect changes in the cost of fuel used for generation and the cost of purchased energy. With the approval of the DPU, the current cost of fuel adjustment schedule has been in effect since September 27,1974. The Company's total fuel costs are determined on an estimated quarterly basis, subject to review and approval by the DPU. Toward the end of each quarter the Company compares actual fuel expenses incurred with the actual fuel adjustment revenues collected and adds or subtracts the resulting difference from the estimated fuel costs for the next quarter. The gas rate schedules of the Company for all retail sales (except interruptible sales) are subject to a cost of gas adjustment by which the rates are modified to reflect changes in the cost of purchased pipeline natural gas and supplemental gas. The current enst of gas adjustment schedule, which was appmved by the DPU, has been in effect since January 1,1974. On October 16,1980, the DPU issued guidelines for a new standard cost of gas adjustment to become effective on a company by company l basis. Under the DPU guidelines, the Company will no longer be permitted to include in its cost of gas adjustment (i) production costs, such as maintenance of the Company's LNG plant and storage costs, and (ii) BTU revenue loss (resulting from billing higher BTU gases, such as LNG and propane, on a volumetric instead of a BTU,i.e. heat content, basis). With respect to BTU revenue loss, the DPU will permit companies to bill customers for gas on the basis of BTU contcat or to stabilize such BTU contem. The Company is studying these alternatives at the present time. In addition, the DPU has announced its intention to review on an expedited basis the treatment by gas utilities of profits from non-firm '(interruptible and off-system) sales. It is possible that the DPU may require ruch utilities, including the Company, to pass on a portion of such profits to firm customers. In connection therewith, the Company has responded to DPU informational requests and has testified at pub!ic hearings. For the year ended Deccmber 31, 1960, such production costs amounted to $263,000, BTU
revenue loss amounted to $208,000, and profits from non-firm sales amounted to $508,000. The Com-h d pany expects to continue to recover production costs and BTU revenue loss through its current cost of gas adjustment clause until the DPU implements the guidelines with respect to the Company. Upon implementation of the guidelines, the Company anticipates recovering production costs by including them in its cost of service subject to DPU approval and recovering BTU revenue loss through one of the alternatives permitted by the DPU discussed above. The DPU has not indicated what portion of profits from non firm sales it may require gas utilities to pass on to firm customers and the Company is unable to determine at this time what such portion might be. l Time-of-day rates, a pricing system that reflects the varying costs of providing electric energy at ! different times of the day and/or during different seasons of the year, were filed with the DPU in early i 1979. The intent of time-of-day rates is to :hift demand energy use from on-peak to off-peak periods thereby reducing the amount of new generating capacity required to serve peak loads. The rates filed by the Company are applicable to residential and commercial customers on an optional basis. In addition, the Company made available in mhl-1950 an optional limited senior citizen rate which provides reduced rates to certain of the Company's residential customers who qualify. The Company , does not anticipate that either of these optional rates will have a significant impact on the Company's financial condition. On .\ fay 12,19S1, the DPU commenced public hearings on the Afassachusetts gas supply problem for the period December,19S0 through January,1931. In ennnection therewith, the Company has responded to DPU informational requests and has testified at .e public hearings. The DPU has also indicated that cost of gas adjustment collections are subject to refund pending final approval by the DPU. The Company believes that r.one of the collections under its cost of gas adjustment has been improper and that none will be subject to refund. Competition A While franchise rights of the Company are non-exclusive, statutes restrict competition from other companies without the approval of the DPU. Under the laws of hfassachusetts, a municipality by appropriate vote can enter the gas or electric business and, subject to mutual agreement, purchase the facilities of the utility serving such municipality. To the best of the Company's knowledge no munici-pality has taken any such action in .\fassachusetts; however,
- Afarch,19S1, the Afayor's Office of the City of Fitchburg announced that $47,000, which was part of a Federal grant received by the Franklin County Community Action Corporation of Greenfield, Afassachusetts, from the Federal Community Services Administration, would be used to undertake a two-year study of the feasibility of owning and operating a local utility system. The Company cannot presently predict what impact the proposed study might have on the Company or its operations.
Environmental Afatters The combustion turbine operated by the Company, the jointly-owned fossil-fueled and nuclear projects in which the Company has an ownership interest (see " Business-Electric Operations and Energy Supply" and " Business-Joint Projects and Othrr Plans") and the electric generating units from which the Company purchases power (see " Business-Electric Operations and Energy Supply"Y under long-term contracts are all subject to regulation with regard to air and water quality and othe environmental factors by governmental authorities - Federal, state and local. The Company believes that it is in material compliance with all applicable environmental regulations. The Company further believes that no significant expenditures will be required to main-tain such compliance in the case of the combustion turbine operated by the Company. IIowever, the Company could incur increased construction or operating expenditures as a dt of environ-mental requirements applicable to those Units over which it does not have supervisory control, but in which it has an ownership share. In complying with existing emironmental regulations and further developments in these and other areas of regulation, the Company as a joint participant in the Units in which it has an ownership (. interest has incurred, and expects to continue to incur, substantial capital expenditures for equipment 1 21 I
modifications and additions, monitoring equipment, ret ling devices and general operating expenses. The total amount of these expenditures is not now determinable. The requirements in these areas may also cause substantial delays in the completion of the four nuclear generating units in which the Company has an ownership interest (see " Construction Program"). Nucleer Licensing Nuclear plants require various construction and operating permits from state regulatory authori-ties, including the DPU, and from the NRC. These regulatory authorities extensively investigate all proposed nuclear plants in relation to safety, financial viability, and other factors. . L Iddition to the individual safety reviews of each nuclear generating unit which are conducted by the NRC in connection with construction permit and operating license applications, the NRC may require modifications in units which already have a construction permit or operating license, or in the fuel for such units, to take account of new standards or technological developments. Where such modifications are required, it may l>c necessary to reduce or cease operations of a particular unit, either on a permanent basis or until the modifications can be effected. The expanding development of nuclear power plants in the United States continues to be a sub-ject of public controversy. Various groups have published articles and reports, filed lawsuits and par-ticipated in administrative proceedings such as those described above, claiming that the proliferation of nuclear power plants under the present state of nuclear technology presents unacceptable risks to public health and safety and to the environment. In addition, certain of these groups have proposed restrictive legislation in hiassachusetts, Connecticut and New Hampshire, and others have participated in demonstrations, including demonstrations at the Seabrook Units, and raised questions in public hearings regarding the ultimau cost of energy produce ( nuclear plants as opposed to other fuels. Since the events at Th!I, these efforts have substantially msified (see "The Company - Problems of the Utility Industry and the Company" and "Husinu.. -joint Projects and Other Plans"). It is possible that some of the claims made by such groups, if they should prevail, or the existence of the controversy itself, wil' cause delays in, or prevention of, the construction of nuclear plants presently planned or under const ruction, or substantial modifications to or extended shutdowns of plants presently in operation, any e' 4nich cou'd have an adverse impact on the results of operations of the Company. Employee Relations As of December 3!,1950, the Company had 164 employees, of which 84 were represented by the Brotherhood of Utility Workers of New England, Incorporated. The current one-year collective bar-gaining agreement terminates on April 30,1982. The Company has pension plans for employees and also pays the costs of a group insurance plan includirg life, sickness, accident and hospitahzation benefits (see Note 9 to Consolidated Financial Statements). Fitchburg Energy Development Company The Company continues to pursue the development of domestic oil and gas supplies in an attempt to insure an adequate long term supply of fossil fuels through its exploration and development sub-sidiary, Fitchburg Energy Development Company ("FEDCO"), which is a partner in hiinuteman Exploration Company ("Alinuteman"). FEDCO is not expected to realize income in the near-term, and the Company cannot predict whether or when FEDCO's operations will become profitable. The Company's investments in FEDCO, which are not included in its construction expenditures, are made from the general funds of the Company and are being borne by the Company's common shareholders. A joint venture program through Alinuteman has involved the drilling of a number of wells in h! organ County, Ohio, since exploration was started in July,1978. While most of these wells are currently producing oil and gas, the Company is unable to predict at this time what amounts, if any, will be transported back to its customers. As of hf arch 31, 1981, the Company had an investment of
$20,000 in FEDCO, representing 100% of FEDCO's outstanding common stock. In addition, as of Afarch 31,19S1 and December 31,1950, FEDCO had received capital contributions from the Company amounting to $717,000 and $637,000, respectively, but a DPU order currently limits the Company's capital contributions to FEDCO to $1,000,000. The Company anticipates petitioning the DPU for the right to contribute further funds to FEDCO. Hearings, if required, are expected to be held in the lattu part of 19S1.
22
ELECTRIC OPERATING STATISTICS l D d Twelve Months Ma 1, Year Endal Decembee 31, 1981 1980 1979 1978 E 1976 EnsemC ExEncT: CENERATED AND PUnCliASED (thousands of KWII): Cencrated Net Station Output 96,536 100,768 141,020 100,343 91,688 94,805 Purchased and Interchanged (net received) 295,206 305,658 320,272 332,279 289,351 243,188 Total Generated and Pur-chased 391,742 406,426 424,292 432,622 381,039 337,993 Less: Company Use, Loss and Unaccounted for 29,418 35,4S0 31,601 34,078 31,490 28,736 Electric Energy sold 362,324 370,946 392,691 398,544 349,549 309,257 ELECNC SATES Bit.tzD (thousands of KWil): Residential 98,050 97,420 98,342 97,945 96,271 96,895 Commercial 34,311 34,177 33,258 31,848 29,039 28,229 Industrial , , 219,997 229,121 252,106 259,527 203,804 ' 164,506 Other Utilities 735 1,891 1,614 1,667 2,367 1,135 Miscellaneous 9,231 8,337 7,371 7,557 18,068 18,492 Total Electric Sales- 362,324 370,946 392,691 398,544 349,549 309,257 NusssEn or Custos Ens (end of period): Residential 20,198 20,112 19,538 19,309 19,066 18,852 Commercial 2,047 2,047 2,026 2,018 1,872 1,845 v
)
Industrial - 157 174 172 172 164 154 Other Utilities . - - 1 2 1 1 Miscellaneous 9 6 7 7 169, 171 Total Customers 22,411 22,339 21,744 21,508 21,272 21,023 EtzcTarc OPERATINc REVExvE (thousands of dollars): Residential . $ 9,140 $ 8,07 $ 7,647 $ 6,768 $ 6,353 3 6,245 Commercial 3,375 3,284 2,818 2,446 2,143 2,029 Industrial 15,150 15,324 13,036 11,061 8,917 6,923 Other Utilities . 129 238 283 251 473 314 Miscellaneous 920 801 653 601 1,140 1,048 Total Revenue from Energy Sales 28,714 28,484 24,437 21,127 19,&26 16,559 Other Operating Revenue 58 41 38 31 35 42 Total Electric Operating Revenue $ 28,772 $ 28,525 $ 24,475 $ 21,158 $ 19,061 $ 16,601 AvEnAcE AxxvAr. KWII SA1.ES pen 3 REsmEYfrAI. CUsTOsfEn 4,935 4,844 5,033 5,073 5,049 5,140 i AVEnACE Ax it. Brt.r, pen Rest-DENTIAI, CUS. AIEn $459.99 $447.65 $394.47 $352.26 $335.73 $338.54
- AVEnACE REvExuE pen KWII
- Bit. LED
Res&lential , 10.21t 9.07g 7.78f 6.91f 6.00W 6.45e Commercial 10.97c 9.61r 8.47f 7.68# 7.38W 7.!Cd ! Industrial 8.25W - 6.69e 5.17g 4.26d 4.38d 4.21d j Other Utilities . 11.31r 12.59d 17.53d 15.06W 19.98f 27.67W
, r Miscellaneous . 10.20t 9.61 e 8.86# 7.95W 6.31g 5.67p 23 1
4
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GAS OPERATING STATISTICS Twelve Months gf"',\'jg, Year Ended December 31, 4 1981 19SO 1979 1978 1977 1976 CAs ENERGYs IT1tCHAsED AND VAPORIZED (htCF) Total Gas Purchased for Resale 2,597,310 2,599,M0 2,129,079 1,832,100 1,861,171 1,896,988 Underground Storage Gas Used (In. jected) (77,953) 127,123 35,",46 69,094 72,146 55,600 Supplemental Gas-LNG and Propane 471,451 402,661 289,961 246,393 210,651 240,175 Total Gas Vaporized and Pur-chased 2,990,808 3,129,324 2,454,3S6 2,147,587 2,143,968 2,192,763 Less: Company Use, Loss and Unac-counted for 209,943 235,463 111,270 85,196 100,430 222.697 Cas Energy Sold 2,780,86_5 _2.893,8_61 2,343,116 2,062,391 _2,043,538 1,970,066 gas BILLED (htCF): Residential 1,344,270 1,288,524 1,102,340 1,120,938 1,019,300 1,084,813 Commercial 433,910 410,973 361,912 364,710 374,870 418,768 Industrial . 400,091 417,918 442,243 389,136 390,992 440,183 Interruptible 602,594 594,952 403,621 12,332 89,993 20,302 Other Utilities - 175,494 33,000 175.275 138,383 - Total Gas Sales . 2,780,865 2,893,861 2,343,116 2,062,391 2,043,538 1,970,066 NUumER or CUsrouERs (end of period): Residential 13,418 13,282 12,754 12,174 12.026 11,888 Commercial 898 891 839 801 811 861 Industrial . 98 100 98 93 88 81 Interruptible 8 7 2 1 2 2 Other Utilities - - - - - - Total Customers 14,422 14,280 13,693 13.069 12J27 12,832 gas OPERATINc RzvENUE (thousands of dollars): Residential $ 7,851 $ 6,761 $5,089 $4,515 $3,734 $3,339 Commercial 2,332 2,039 1,512 1,343 1,249 1,175 Industrial . 2,319 2,203 1,630 1,390 1,194 1,052 Interruptible 1,883 1,824 1,307 28 195 48 Other Utilities - 745 127 537 396 - Other Operating Revenue 255 213 121 107 93 84 Total Gas Operating Revenue $14,640 $13,785 $9,786 $7,920 $6,861 $5,698 AVERAcE ANNUAL HIC [ SALES PER Rest-oENTtAL CUSTOMER . 102.62 97.0 86.4 92.1 87.3 91.2 AVERACE ANNUAL RILL PER REstoENTIAL CUSTOMER $599.36 $521.05 $370.93 $35ti.29 $327,79 $274.62 AVERAcr REVENUE PER htCF Br 1En: Residential $5.84 $5.25 $4.62 $4.03 $3.56 $3.08 Commercial $5.37 $4.89 $4.18 $3.68 $3.33 $2.81 Industrial . $5.80 $5.27 $3.69 $3.57 $3.05 $2.39 Interruptible $3.12 $3.07 $3.24 $2.27 $2.17 $1.82 Other Utilities -
$4.25 $3.85 $3.06 $2.86 -
24 l
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AIANAGEAIENT Principl Officers Held OfBee Name Oflice Held Since Charles II. Tenney II Chairman of the Board 1959 of Directors IIoward W. Evirs, Jr. President 1970 Frank L. Childs Vice President; 1979 Treasurer 1980 David K. Foote Vice President 1980 Edward D. NicKenzie Assistant Treasurer 1979 Angela P. Carlson Clerk 1975 WiUiam D. AfacGillivray Assistant Clerk 1979 Edward R. Ilarriman Controller 1981 Directors Dire <%r Name Principal Occupation Sir.ce Philip II. Bradley Resident Af anager, Northeast,IBN1 Corporation 1975 Richard L. Erickley . Partner in the law firm of B;ickley, Sears & Cole 1954 IIoward W. Evirs, Jr. President 1969 John Grado, Jr. Vice President, Litton Industries, Inc. and Chief Executive of 1976 its Paper, Printing and Forms Group Thomas W. Sherman . Executive Vice President and Treasurer, Bay State Gas 1975 Company Robert V. Shupe President, R. L. Gourley Co., Inc. (distributors of heating, air 1972 conditioning and water heating equipment) Charles II. Tenney II Chairman of the Board of Directors and Chief Executive 1946 Officer; Chairman of the Board of Directors and Chief Executive Officer, Bay State Gas Company, Concord Elec-tric Company and Exeter & IIampton Electric Company Robert L. Ware Partner in the law firm of Ware & Ware 1967 Information, as of particular dates, concerning Directors and ofScers, their remuneration, and any material interest of such persons in transactions with the Company, is disclosed ii proxy statements distributed to common shareholdcrs of the Company and filed with the Securities and Exchange Commission. Copies of these proxy statements are available for examination and copying at the l Commission's offices as indicated under " Additional Information" at page 2. 26
i DESCRIPTION OF COhih10N STOCK
#$~
Dividend Rights and Restrictions ~ 8R Subject to the restrictions set forth below and to the preferential rights of the holders of Curula-tive Preferred Stock to receive full cumulative dividends, holders of Common Stock are entitled to receive such dividends as may be declared by the Board of Directors from funds legally available. Under the Purchase Agreement relating to the Company's 15%% Notes due September 1,2000, which contains the most restrictive provisions of any of tl'c Company's note agreements or indentures, the Company may not declare or pay any dividend on its (lommon Stock or make any other distribution on Common Stock (including the purchase or retirement .)f Common Stock other than amounts equal to the net proceeds from the sale of Common Stock) if such dividend or distribution together with all other such dividends or distributions (including dividends on, and purchases of, preferred stock of the Company) after December 31,1979 exceeds the sum of $2,455,000 plus Consolidated Net Earnings of the Company (as di Sned) during the period commencing January 1,19S0 and ending as of the date of such dividend or distribution. As of Afarch 31, 1981 retained earnings available for common dividends amounted to approximately $2,446,000. Pre-Emptive Rights
- The holders of the Common Stock have no pre-emptive rights to purchase additional shares of Common Stock.
Liquidation Rights Upon any liquidation of the Company any n'et assets' remaining after ' paying to the holders of Cumulative Preferred Stock the full amounts they are entitled to receive are distributable to the holders of Common Stock. Voting Rights The holders of Common Stock are entitled to one vote per share. If six quarterly dividends on the Cumulative Preferred Stock are in arrears, and until such dividend arrearages shall have been paid, the holders of Cumulative Preferred Stock will be entitled to elect a majority of the Directors. Otherwise the holders of the Cumulative Preferred Stock are not entitled to vote except with respect to certain matters affecting the rights and preferences of such Stock where the vote of the holders of two-thirds or a specified lesser percentage of such Stock is required. Other Provisions , The outstanding shares of Common Stock are, and the shares of the Additional Common Stock will be, fully paid and non-assessable. Transfer Agent and Registrar The registrar for the Common Stock is New England hierchants National Bank and the transfer agent is The First National Bank of Boston. Reports to Shareholders The Company distributes to its shareholders current reports three times a year containing unaudited interim financial statements and an annual report containing audited financial statements. Listing The Company's outstanding Common Stock is listed, and the Additional Common Stock will be listed, upon notice of issuance, on the American and Boston Stock Exchanges. 27
LEGAL OPIMONS The validity of the Additional Common Stock will be passed upon for the Company by Alessrs. Brick!cy, Sears & Cole, One Federal S;reet, Boston, Afassachusetts 02110, and by Alessrs. LeBoeuf, Lamb, Leiby & AlacRae,140 Broadway, New York, New York 10003, and for the Underwriters by hiessrs. Brown, Wood, Ivey, Nfitchell & Petty, One Liberty Plaza, New York, New York 10006. Afessrs. LeBoeuf, Lamb, Leiby & N1acRae and 51essrs. Brown, Wood, Ivey, Alitchell & Petty will rely as to matters of Afassachusetts law upon the opinion of hiessrs. Brickley, Sears & Cole. hiessrs. LeBoeuf, Lamb, Leiby & AfacBac have reviewed the statements under the heading " Description of Common Stock" as to matters of law and legal conclusions. Richard L. Erickley, Esq., a partner in the firm of hiessrs. Brickley, Sears & Cole, is a Director of the Company and owns 25 shares of the Company's Common Stock. EXPERTS To the extent set forth in their report appearing elsewhere in this Prospectus, Alexander Grant
& Company, independent certified public accountants, have examined the financial statements in-cluded herein. All such statements and the financial data, which were selected by management from the Company's financial statements, are included herein in reliance upon the report of such firm and upon the authority of such firm as experts in auditing and accounting.
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Shareholders of Fitchburg Gas and Electric Light Company We have examined the consolidated balance sheets of Fitchburg Gas and Electric Light Com-pany and Subsidiary as of L)ecember 31,1980 and 1979 and Se related consolidated statements of earn-ings, retained earnings and changes in financial position for each of the five years in the period ended December 31, 1950. Our examinations were made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. As discussed ir. Note 2 to the financial statements, the Company's method of billing and accounting for revenues under its fuel adjustment clause in effect from January 1 through September 26, 1974, has been challenged by the Attorney General of The Commonwealth of Afassachusetts. The Com-pany believes its methods are correct and has vigorously defended its procedures, but the ultimate outcome is uncertain and no provision for ary liability that may result has been made in the financial statements. In our opinion, subject to the effect of such adjustments, if any, as might have been required had the outcome of the matter discussed above been known, the financial statements referred to above present fairly the consolidated financial position of Fitchburg Gas and Electric Light Company and Subsidiary at December 31,19S0 and 1979 and the consolidated results of their operations and changes in their financial position for each of the five years in the period ended December 31,1950 in con-formity with generally accepted accounting principles applied on a consistent basis. Further, in our opinion, subject to the effect of such adjustments, if any, as might have been required had the outcome of the matter discussed in the second preceding paragraph been known, the selected financial data of Fitchburg Gas and Electric Light Company and Subsidiary as of, and for, the years ended December 31,19S0,1979,1978,1977 and 1976 (appearing on page 10 of this Prospectus), presents fairly the information set forth therein, which has been selected by management from the financial statements which have been prepared in conformity with generally accepted accounting principles applied on a consistent basis and which have been examined by us. Boston, hf assachusetts February 5,1981 ALEXANDER GRANT & COhfPANY Oi 28 l
, ~. -.
1 FITCIIBURG GAS AND ELECTRIC LIGIIT COSIPANY AND SUBSIDIARY CONSOLIDATED BALANCE SIIEETS ASSETS x/ March 31, Decembu 31, 1981 1980 197D I (Unaudited) (In thousands) Utiuty Plant (at cust): Electric $30,456 $30,454 $29,789 Cas . . . 12,700 12,796 10,763 Common . .... .......... 1,405 1,405 1,396 Construction work in progress (Note 9) 13,526 6,565 5,196 Utility Plant . . . . . 58,177 51,220 47,144 Less: Accumulated Depreciation (Note 1) 11,239 10,899 9,850 Net Utility Plant 46,938 40,321 37,294 Miscellaneous Physical Property (at cost) . 26, 26 26 Investments (Note 1) 426 370 348 Current Assets: Cash (Note 7) . . . . ... .... ............. .. .. 1,391 1,097 1,738 Accounts receivable - less allowance for doubtful accounts of
$427.000, $362,000 and $178,000 . 10,276 8,456 5,082 Refundable income taxes . .... 656 397 265 Materials and supplies (at average cost) 1,102 830 878 Prepayments . . . . . . 185 389 830 Property tax refunds . 555 555 463 Total Current Assets 14,165 11,724 9,246 Deferred Debits:
Unamortized debt expense (amortized over term of securities) 379 385 276 Unamortized cost of abandoned properties (Note 3) 1,938 2,116 2,977
- Other (Note 3) 718 578 646 Total Deferred Debits 3,035 3,079 3,899 TOTAL $N,590 $55,520 $50,813 LIABILITIES AND CAPITALIZATION Capitalitation
Common Stock Equity (Notes 5 and 13): A* Common stock, $10 par value g s'j Authorized - 1,000,000 shares in each period Outstanding - 558,477,558,477 and 455,475 shares $ 5,585 $ 5,5M $ 4,555 Premium on common stock . 3,091 Capital stock expense 3[091455) (435) 1[754182) Retained earnings . 6,429 6,533
~
6,418 Total Common Stock Equity 14,650 14,75i 12,545 Redeemable Preferred Stock (Note 4): Cumulative prefcrred stock, $100 par value: Authorized 40,710,40,710 and 41,880 shares 5% Series: Outstanding - 16,040,16,040 and 16,460 shares 1,604 1,604 1,646 8% Series: Outstanding - 23,500,23,500 and 24,250 shares . 2,350 2,350 2,425 Total Redeemable Preferred Stock 3,954 3,954 4,071 Long-term Debt (Note 6) 21,462 21,573, 16,780 Total Capitalization 40,066 40,281 33,396 Current Liabilities: Long-term debt due within one year . 123 123 123 Notes payable (Note 7) 9,430 1,700 5,420 Accounts payable .......... 6,367 5,421 4,995 Customer deposits and refunds . 370 531 259 Taxes accrued ... ...... ... ..... 425 104 168 Deferred income taxes (Notes 1 and 8) 1,109 489 131 Interest accrued 369 576 496 Total Current Liabilities 18,193 8,944 11,592 Deferred Credits: Unamortized investment tax credit (Note 1) 1,852 1,873 1,584 Other , . , 53 53 70 Total Deferred Credits ., 1,905 1,926 1,654 Deferred Income Taxes (Notes I and E) 4,355 4,309 4,122 Reserves- Other 62 60 49 Commitments (Note 9) TOTAL $64,590 $55,520 $50,813 A
,() The accompanying notes are an integral part of these statements.
29 l
FITCIlllURG GAS AND ELECTRIC LIGIIT CO.NIPANY AND SUBSIDIARY CONSOLIDATED STATE 5fENTS OF EARNINGS Twelve Afonths 3,En< ments t48) (441) 628 (29) 14 24 Property tax refunds 92 92 46] - - - Accounts payable 765 (426) (1,160) (1,091) (258) (589) > Customer deposits and refunds (108) (272) 365 (256) (328) (3) Taxes accrued 165 G1 403 (508) 412 (318) Deferred income taxes (622) (338) 66 (64) 22 265 Interest accrued (56) (80) (43) 17 (36) (65) INCREASE (DECREASE) IN DotsdNo CAPI. $(1,208) Tit $ 4,078 $ 1,406 $3,654 $(2,192) $ 464 The accompanying notes are an integral part of these statements. 32
I
)
O FITCIIBURG GAS AND ELECTRIC LIGIIT C05tPANY AND SUBSIDIARY b) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS l l (Infonnation subsequent to December 31,1950 is unaudited) Note 1. Summary of Significant Accounting Policies The Company is subject to regulation by the Afassachusetts Department of Public Utilities (the "DPtJ") with respcet to its rates and accounting. The Company's accounting policies conform with generally .wepted accounting principles, as applied in the case of regulated public utilities, and are in accordance with the accounting req urements of the DPU. A description of the Company's significant accounting policies follows: Principles of Coruolidation i On February 24,1978, the Company invested $20,000 in the common stock of a new wholly-owned subsidiary, Fitchburg Energy Development Company ("FEDCO*). FEDCO has invested in oil and gas drilling projects, which investments have been recorded on the equity method. All intercompany { items have been climinated in consolidation. Recenue Recognition The Company records unbilled fuel adjustment revenue c trrently to properly match revenues with related costs. Such unbilled revenue as of Alarch 31,1981 was $2,965,000 and as of December 31,19S0 and 1979 was $1,692,000 and $756,C00, respectively. Deprecktion Annual provisions are determined on . group straight-line basis. Provisions for depreciation were equivalent to the following composite rates based on the average depreciable property balances at the '(N () beginning and end of each year: Af arch, 1981 - 3.23 %, 19S0 - 3.19 %, 1979 - 3.11 %, 1978 - 3.01 %, 1977 - 2.8S% and 1976 - 2.61%. Accounting forincome Taxes For income tax purposes the Ccmpany excludes a portion of unbilled fuel adjustment revenue and i accordingly provides deferred income taxes payable in the succeeding year on such revenue which is carried as a current asset. i The Company has used an accelerated method of depreciation which presently results in annual tax depreciation which is in excess of book depreciation, and has deducted currently certain elements j of construction overheads that are capitalized for book purposes. For each of these differences :he Company provides deferred income taxes at approved for rate making purposes by the DPU. In addi-tion, the Company ha; recorded deferred income taxes related to certain abandoned properties which are recognized as tax losses at differing times. The Company, in 1979, began capitalizing certain maintenance costs for a generating unit, yet continued to deduct these costs currently for tax purposes. Deferred income taxes have been provided for this timing difference. The annual investment tax credits permitted for additions to the Compar.y's utility propaty are being amortized into income ratably over the estimated productive lives of the related assets as allowed by the DPU. Such deferrals for the five years ended December 31,19S0 were as follows: 1950 - $375,000,1979 - $309,000,1978 - $292,000,1977 - $166,000 and 1976 - $3S7,000. No investment tax credit has been reflected in the financial statements for the twelve months ended Alarch 31,1981 as being utilized during the three months ended Afarch 31,1981 bec . se the Company experienced a loss for tax purposes during this three-r onth period. An investment tax credit carry-forward of approximately $450,000 arising during this three. month period is availabic to reduce future tax liability. IIowever, as the Company is on a calendar par basis for tax purposes, the amount of the p investment tn credit to be utilized in 1981 will depend upon the results of operatioes for the year. U The investment tax credit carryforward expires in 1988. 33 1 l l
FITCIIBURG GAS AND ELECTIUC LIGIIT COhlPANY AND SUBSIDIARY Y NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) d (Information subequent to December 31,19s0 is unaudited) Note 1. Summary of Significant Accounting Policies - (Continued) The Company has elected to account for investment tax credits on non-utility property additions, primarily related to FEDCO, by the "ilow-through" method. Under this method credits are recognized as a reduction of Federalincome tax expense in the year utilized. For the twcive months ended $1 arch 31,1981 and the yurs ended December 31,19S0,1979 and 1978 these credits amounted to approxi-mately $2,000, $2,000, $8,000 and $10,000, respectively. The additional investment tax credit permitted under the Company's Tax Reduction Act Em-ployees Stock Ownership Plan (the "TRAESOP") reduced Federal income taxes payable by 1%% (1% - in 1977 and 1970) of the Compan/s qualified property additions. The amounts realized from the reduc-tion in income tax liability are paid to the TRAESOP. Allottance for Funds Used During Construction An allowance for funds used during construction ("AFUDC"), a non. cash item, is inchided in construction work in progress. The objective of AFUDC is to present the carnings that would result in the absence of construction programs and the related financing requirements during the period of construction. Accordingly, AFUDC capitalizes the cost of debt and equity employed in meeting these
^
financing requirements based upon a composite rate applied to construction work in progress which assumes that funds used for construction were provided by borrowings, preferred stock and com-mon equity. Prior to 1977, AFUDC was reported on the basis of an overall rate applicable to all funds. The combined rates used in calculating AFUDC were approximately 147o,14%,14%,11% and 10% for the twelve months ended Af arch 31,19S1 and the years ended December 31, IDSO,1979, 1978 and 1977, respectively. The rate used in calculating AFUDC was 10% for the year 1976. For 1976, the caption "All fuads" reilects total AFUDC. For the year 1977 and subsequent years, the total of
" Allowance for funds used during construction-other funds and " Allowance for borrowed funds used during construction" is comparable to total AFUDC reported in 1976. AFUDC amounted to i
approximately 67%,55%,32Tc,257c,27% and 17% of net income applicable to Common Stock for the twelve months ended Alarch 31,19S1 and the years ended December 31,1980,1979,1978,1977 and 1970, respectively. The equity components of AFUDC equaled approximately 14re,97c,670,7% and 4% of net income applicable to Common Stock for the twelve months ended h! arch 31,1981 and the years ended December 31,19SO,1979,1978 and 1977, respectively. The Company has not reclassified AFUDC into its debt and equity coemonents for 1970 because it believes such reclassification would be inappropriate since the allocatin between the debt and equity components for periods prior to January 1,1977 could not be compa.able to the allocation be-tween such components determined after December 31, 1976 utilizing the revised procedures of the Federal Energy Regulatory Commission. Assuming that funds used to finance construction during the year 1976 were obtained from various ..,urces of capital in the same proportion as the capitalization ratios for those years, the common equity component of the allowan. e for funds used during construction as related to net in-come applicable to Common Stock, after giving tax effect to the interest component relating to long-term debt, is estimated at approximately liTo. Note 2. Regtdatory Afatters Recenue Adjustments The Company's method of billing and accounting for revenue under its fuel adjustment clause in effect from January 1 through September 20,1974 has been challenged before the DPU by the At- \ torney General of The Commonwealth of hiassachusetts. The required monthly fuel adjustment schedule 34
FITCIIdURG GAS AND ELECTRIC LICIIT COSIPANY AND SUBSIDIARY NOTES TO CONSOLIliATED FINANCIAL STATEAfENTS - (Continued) (Infonnation subsequent to Decemt,er 31.1950 is unaud;ted) Note 2. Regulatory Afatters -(Continued) theretofore filed with the DPU had not been disputed by the regidatory authontf. The portion of such fuel adjustment clause revenues recorded by the Company and challenged by the Attorney General aggregates approximately $721,000. The Company has vigorously defended its procedures in proceed-ings before the DPU, the outcome of which is uncertain. No provision for any liability that may result has been made in the consolidated financial statements. The Company's billing and accounting for revenues under the fuel adjustments based on costs i , incurred after September 26,1974 are being made under a new fuel adjustment clause which took cifect on September 27,1974 and are not being challerged. l Conclusion of Bate Appeal On February 14,1977, the Company filed with the DPU revised rates designed to increase electric revenues by $2,795,000 and gas revenues by $S38,000, which proposed rates were suspended. In accordance with the Order of the DPU dated August 31,1977 in DPU 19084 and the Supplemental Order thereto dated September 15, 1977, the Ccmpany was allowed to file new rates designed to produce approximately $1,962,000 in additional annual electric revenues and $554,000 in additional annual gas revenues. On September 15,1977, the Company appealed this rate decision to the Supreme Judicial Court of 5fassachusetts (the "SJC"), and on October 21,1977, the SJC granted the Company's request for a stay. This stay allowed the Company to collect approximately $473,000 in adddional annual electric revenues, subject to refund if the Company did not prevail in its appeal. , On June 30, 1978, the SJC issued its ordo instructing the DPU to recorsider how much in revenues the Company should be allowed. On October 5,1978, the DPU issued its final rtding allowing the Company to retain the $473,000 annual amount collected under the stay and authorized approximately $269,000 in additional elec-tric rates. The October 5,1978 DPU Order concluded the rate r.ction initiatet by the Company in February, l 1977. Of the $3,633,000 originally requested, the total amount granted : ss ipproximately $2,358,000. Note 3. Dcierred Debits i Unamortized Cost of Abandoned Properties j The unamortized cost of abandoned properties is being amorti:-: <arious rates as ordered l by the DPU. On October 18,1978, the Company filed with the DPU its proposed account'ag treatment relative to the book abandonment ordered by the DPU of a generating unit, which treatment was approved by the DPU on November 7,1978. As a result, the Company commenced amortization of this pre-perty in September,1978, retroactive to January 21, 1978. On November 1,1979, the Company began amortizing the costs of its investment in the proposed Charlestown Units No. I and No. 2 nuclear generating plants. This abandonment was precipitated by the announcement on October 9,1979 by the lead participant, New England Electric System, to def. indefinitely the in-service date and the subsequently announced termination of this project. On Novem ber 27,1979, the DPU approsed the Company's request to amortize approximately $653,000 over a three-year period. The Company will request permission from the DPU to apply similar treatment to Q any additional costs associated with these units. 35
FITCIIBURG GAS AND ELECTRIC LIGIIT COh!PANY AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCI AL STATENIENTS - (Continued) (Information subsequent to December 31,1950 is unaudited) Note 3. Deferred Debits - (Continued) On December 31, 1950, Northeast Utilities, the parent company of the lead participants in the proposed nuclear generating plants .\fontague Units No. I and No. 2, announced the ter Anation of the construction of these uws. The Company has requested permission from the DPU to amortize related costs over a five-year period, efIective January 1,1981. These properties have been classified as other deterred debits at December 31,1950, pending the DPU's approval of the proposed account-ing treatment. The amounts to be amortized for all properties over the next five calendar years, assuming DPU approval of the fiveyear amortization of tb \!ontague Units, are as follows: 1981 - G770,000; 1982 -
$679,000; 1993-10S5 - $117,000.
Other Deferred Debits At Af.'rcl 31,1981 and December 31,1950 and It M uher deferred debits are composed of the followlag: December 31, Afarch 31, IW IDSO 1979 (In thousands) hiontague units $294 $294 $- Property tar abatements - - 271 Preliminary survey and engineering costs 30 10 102 sidler conversion costs ... .. ..... . 52 52 - Defe red maintenance costs (amortized based upon generativ) 177 180 195 h!iscel'aneous 159 30 78 Total other deferred debits $718 $578 $640 Note 4. Hedeemable Cumulative Preferred Stock The Cumulative Preferred Stock, 5%96 Series, is preferred over Common Stock in voluntary liquidation at the redemption price hi effect at the time of such volunta;y liquidation, and in in-voluntary liquidation at $100 per share, both plus accrued dividends. Shares of the 5%Cb Series are , redeemable at the Companv'= option at $102.50 per share on or before Afay 31,1931 and at $101.28 thereafter. The Company is required to purchase on June 1 of each year not less than 420 shares, unless a lesser amount of shares is tendered, at $100 per share plus accrued dividends. The Cumulative Preferred Stock, S7L Series, is preferred over Common Stock in voluntary liquida-tion at the redemption price in effect at the time of such voluntary liquidation and in involuntary liquidation at $100 per share, both plus accrued dividends. Shares of the S7L Series are redeemable at the Company's option at $108.00 per share on or before August 31,19S3 and at diminishing premium rater thereafter. The Company is required to purchase on June 1 of each year, beginning in 1979, not
! css than 750 shares, unless a lesse. amount of shares is tendered, at $100 per share plus accrued divideeds Purchases of redeemable Cumulative Preferred Stock for the twelve months ended hf arch 31,1981 and for each of the five years in the period ended December 31,19S0 consisted of the following:
Twelve Afonths Ended
'.darch 31, Series 1931 1980 1979 1978 1&i7 1970 (In thousands) 5%% $42 $42 $12 $42 $12 $42 8% . $75 $75 $75 - - -
36
4 FITCIIBURG GAS AND ELECTRIC LICIIT CO5fPANY AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEAfENTS - (Continued) (Information subsequent to December 31,1950 is unaudited)
~
Note 4. Hedeemable Cumulative Prefured Stock - (Conned) The aggregate amount of sinkSg fund requirements in eaca of the five years following 1980 is
$117,000.
Note 5. Restrictions on Hetained Earnings Under the most restrictive provisions of the agreements relating to the Company's long-term debt, approximedy $2,446,000 and $2,559,000 of retained earnings were available for tne payment of cash dividends on Common Stt::i at Alatch 31,1981 and December 31,1980, respectively. Note 6. Long term Debt Details of leng-term debt at Afarch 31,1981 and December 31,19S0 and 1979 are shown below: March 31, Decenar 31, 1991 19}0 1979 (In thousands) 4%% Notes due February 1,1984 $ 3,097 $ 3,140 $ 3,183 9%% Notes due h! arch 1,1995 . 6,748 6,816 0,000 10% Nutes due September 1,1996 3,000 3,000 3,000 10%% Notes due Afay 1,1999 3,740 3,740 3,820 ( 15%% Notes due September 1,2000 5,000 5,000 - Total $21,585 $21,696 $16,903 Less: Installments due within one year . . 123 123 123 Total long-term debt $21,462 $21,5~.'3 $10,780 l l The aggregate amount of sinking fund requirements and retirements at maturity for each of the l five calendar years following 19S0 is: 1981 - $123,000; 1982 - $323,000; 1983 - $396,000; 19S4 -
$3,366,000 and 19S5-$355,000. The Company has satisfied through advance repurchases $75,000,
$75,000 and $2,000 of the sinking fund requiren;ents for the 9%% Notes for 1981,1982, and 1983, respectively.
Note 7. Credit Arrangements Under line of credit arrangements for short-term debt with four banks, the Company may borrow up to $11,200,000 on such terms as the Company and the banks may mutually agree upon. These arrangements do not have termination dates, but are reviewed annually for renewal. At Afarch 31,1981 and December 31,19S0 and 1979, the unused portion of the credit lines outstanding was
$1,770,000, $9,500,000 and $4,230,000, respectively. The Company has agreed to maintain certain average amounts on deposit in these banks or pay certain fees in lieu of compensating balances. Cer-tain of the lines of credit require that compensating balances be increased in relation to usage. Com-
, pensating balance requirements at Starch 31,1981 and December 31,1980 and 1979 were approximately
$700,000, $770,000 and $9S5,000, respectively.
v 37
FITCllllUllG GAS AND ELECTIllC LIGilT CONIPANY AND SUllSIDIARY NOTES TO CONSOLIDATED FIN ANCIAL STATEh1ENTS - (Continued) O (Information subsequent to December 31.1950 is unaudited) Note 8. Federal Income Tax Federal income tax expense is comprised of the following components: Twelve Afonths 3g("AI33, _ Year l'nde 1 December 31, 1941 19S0 1979 1978 1977 1976 Current expenso charged (credited): Operating expenses $169 $535 $ 958 $1,210 $502 $702 Non-operating income (23) (30) (124) (78) (2) 19 Amortization of investment tax credit (80) (85) (89) (62) (52) (49) Deferred tax expense charged (credited): Deferred unbilled revenue 559 321 75 01 (19) (220) Accelerated tax depreciation 293 293 278 285 308 363 Abandoned properties (191) (192) 39 (157) - - Oserheads and other 53 63 218 93 101 41 Deferred maintenance costs (4) (6) 85 - - - Pcreentage repair a!!owance 27 29 20 57 21 52 742 508 715 339 411 230 Non-operaung expense (25) (25) 45 67 - - 717 4S3 760 400 411 230 Total expense $_777 - $903- $1,505-
$1,482
$919 U_d f
The Federal income tax any nts included in the consolidated statements of carnings differ from the amounts which result from applying the statutory Federal income tax rate to net income before income tax. The reasons, with related percentage effects, are as shown t>clow: Twelve hionths Year Ended December 31, 3,["cj'jg, 1931 198') 1979 1978 1977 1976 < Statutory Federal income tax rate . 40% 40% 40% 48% 48% 4S% Income tax effects of timing differences: Allowance for funds used during construction (14) (10) (5) (4) (4) (3) (1) (1) (1) (1) (1) 2 hiiscellaneous 31 % 35% 40% 43% 43% 47 % Effective Federal income tax rate _ . _ _ _ _ Note 9. Co.umitments Lease obligations In accordance with the guidelines of Statement of Financial Accoun4ng Standards No.13 issued by the Financial Accounting Standards lloard, the Company is disclosing pertinent information re-garding its capital leases. The Securities and Exchange Commission requires, for rate-regulated en-terprises, disclosure of the effect on the balance sheet and on expenses if swh leases had been capital-ized, pending the results of its review of the Statement's applicability to rate-regulated enterprises. The Company has a significant twenty-five year lease which began April 1,1973 for a ( :mbustion turbine and a liquefied natural gas storage and vaporization facility. The lease is subject to a ten year renewal period at _ c option of the Company at an ani.ual rental of 14%ro of the aggres; ate fair ss
O O FITCIIBURG CAS AND ELECTRIC LICIIT CO5fPANY AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEhfENTS - (Continued) (Information subsequent to December 31,1950 is unaudited) Note 9. Commitments - (Continued) market value as at the end of the initial lease term. Under certain conditions the Company has the right to purchase the units at an independently appraised market vahte. Under the lease, the Co;apany has the obligation to maintain the equipment in good operating condition and pay all taxes and insur-ance on said equipment. - The Company leases its new service center in Fitchburg under a sale and leaseback arrangement. The twenty-two year primary term of the lease began in February,1981 with annual rental payments increasing over the initial term of the lease from approximately $184,000 to $537/)00. The lease is subject to five five-year renewal periods at the option of the Company at an annual rent of $270,000. The Company has the option to purchase the service center on the last day of the primary term or any extended term at a price equal to its fair market value. The Company has a right of first refusal to purchase the service center during the term of the lease if a bona fide offer is made to the lessor. Should the service center be purchased by another party, this right expires after the transfer of ownership resulting from this offer. The lease requires that the Company maintain the service center and pay all taxes and insurance thereon. IIad the Company capitalized its capital leases at Afarch 31,19',1 and December 31,19SO at-i 1979, the asset and related liability which would have been recorded < n the balance sheets for the Company's capitalleases would have been as follows: December 31,
\ Afarch 31,1981 1980 1979 (In thousands)
Asset $4,647 $2,230 $2,203 Liability $5,522 $2,603 $2,538 Ilad the Company capitalized its capital leases, Depreciation and Other Interest Charges would have increased and Operating Expenses, Other would have (decreased) as follows: Twelve Afonths Year ended December 31, Alarch 1, 19531 1980 1979 1978 1977 g6 (In thousands) Depreciation $ 192 $ 182 $ 172 $ 163 $ 143 $ 117 Other interest charges . . $ 251 $ 183 $ 182 $ 170 $ 181 $ 177 Operating expenses, other . $ (343) $(f228) $ (307) $(287) $ (274) $ (237) The minimum commitments under all non-cancellable long-term leases in effect at December 31, 1950, including the building lease are as follows: 1981 - $506,000; 1982 - $508,000; 19S3
- $726,000; 1984 - $742,000; 1985 - $732,000; 1986-1990 - $3,450,000 aggregate for the period; 1991-1995 - $3,603,000 aggregate for the period; 1996-2000 - $3,219,000 aggregate for the period; 2001-2003 - $1,119,000 aggregate for the period.
Total rental expense for the twelve months ended March 31,1981 and the years ended December (~% 31,19S0,1979,1978,1977 and 1976 amounted to approximately $465,000, $444,000, $430,000, $428,000, Q $440,000 and $467,000, respectively. 39
7 FITCIlllUliG GAS AND ELECTRIC LIGIIT COMPANY AND SUllSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEh!ENTS - (Continued) (Information subsequent to December 31,19S0 is unaudited) Note 9. Commitments - (Continued) Pension Plans The Company has in effect two funded Pension Plans and related Trust Agreements to provide retirement annuities for parbeipating employees at age 65. The entire amount of the annual con-tribution tmder the actuarial requirements of the Plans is borne by the Company. The Company's contribution to the Plans during the twelve months ended March 31,1931 and the five years ended December 3119S0,1979,1978,1977 and 1976 amounted to approximately $538,000,
$534,000, $519,000. 3497 000, $ 160,000 and $ 139,000, respectively, which includes amortization of prior service costs over a pedcd of thirty years.
The Company's p. iicy is to fund the pension cost accrued. The following additional information is presented as of the most recent benefit information dates: January 1, 1950 1979 Actuarial present value of accumulated plan benefits: Vested $3,303 $4,970 Non-Vested 114 111
$5,477 $5,0e7 Net assets available for benefits $1,383 $1,008 The weighted average assumed rate of return used in determining the actuarial present salue of accumulated plan benefits was 57o for both 19S0 and 1979.
Joint Otcnership Units and Construction The Company is participating cn a tenancy-in-common basis with other New England utilities ir t% coastruction and ownership of six generating units. New Ilaven Ilarbor and Wyman Unit No. 4. both M-fired stations, have been in commercial operation since August,1975 and December,1978, respectively. The remaining four nuclear units are planned or under construction. Details relating to the various units as of December Si,19S0 are as follows: Company's Share in Thousands of DoDars Proportionate Amount of Amount Total Share of Total Utility Expended Estimated Joint Omrship Ownership Plant m Accuumlated through Cost of Units _ State % MW Service Depreciation 12/31/S0 Construction Seabrook Units #1 & #2 New IIampshire 0.1710 3.9 $- $- $2,883 $ 8,383 hfillstone Unit #3 Connecticut 0.217 2.5 - - 2,317 8,741 Pilgrim Unit #2 Afassachusetts 0.19 2.2 - - 990 6,168 Wpnan Unit #4 Afainc 0.1822 1.1 407 33 New IIaven IIarbor Connecticut 4.5 20.1 6,937 1,060 29.8 $7,344 $1,093 $6,196
.{35 The Company estimates construction requirements including AFUDC relative to these Units will be approximately $14,203,000 during the five-year period ending December 31,19S5. The construction budget is presented as of December 31,19SO and does not include any projected additional invest-ments which may be required in connection with the purchase of additional ownership interesta in ,
Seabrook Units No. I and No. 2 discussed in the following paragraph. 40
FITClll3URG GAS AND ELECTRIC LIGHT CONIPANY AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATE 3fENTS - (Cominued) (Information subsequent to December 31,1950 is unaudited) Note 9. Commitments - (Continued) On January 20,1979, the common sharehohlers approved the acquisition of an additional 0A3332To ownership interest in each of the Seabrook Units from The Connecticut Light and Power Company
- ("CIAP"). On hf arch 25, 1980, the common shareholders approved the acquisition of an additional 0.26087% ownership in each of the Seabrook Units from Public Service Company of New IIampsh're
("PSNII"). The purchase of both additional interests, representing an additional 16 megawatts, was approved by the DPU on October 30,19SO and has been excluded from the information presented herein. The purchase from CIAP increasing the Company's ownership interest in the Seabrook Units was consummated on January 30,19S1. The purchase from PSNII increasing the Company's owner-ship interest in the Seabrook Units is being phased in over the velve-month period, February,1981 through January,1982. The Company npects to finanw the cost of its participation in the units initially thrcugh short-term borrowings. At the appropriate tunes and subject to then prevailing market condi-tions, the Company intends to convert the short-term borrowings into permanent financing. Operating expenses included in the consolidated statements of earnings for the year ended December 31,1950 for the Company's oil-fired generating units and proportionate amounts charged to specific operating expenses are as follows: Percentage
/
G In thousands fyM ( Wyman Unit 4 New IInven Ilarbor Expense ' Category _ Operating Expense, Other $ 34 $ 311 9% Fuel Used in Electric Gener tion 83 4,295 89 hiaintenance 4 164 22 Local Property Tax . 6 209 17 Other Taxes - 7 5 Total Operating Expenses $127 $4,986 Note 10. Electric Facilities Purchased On June 1,1977, after New England Power Company ("New England Pow er") received final regulatory approval from the Securities and Exchange Commission, the Flagg Pond and Beech Street substations and associated lines were integrated into the Company's electric system. The purchase of this equipment located within the Company's service area ended a 6S-year-old arrangement under which New England Power had served six large industrial customers within the Company's service area. 0 O) 41
FITCIlllURG GAS AND ELECTRIC LIGIIT CONIPANY AND SUllSIDIARY NOTES TO CONSOf IDATED FINANCIAI. STATEh!ENTS - (Continued) (Information subsequent to December 31,1950 is unaudited) Note 11. Segment Information In accordance with Statement of Financial Accounting Standards No.14, the following infor-mation is presented relative to the gas and electric operations of the Company: In thousands Electric Operations 1980 1979 1978 Operating revenues $28,525 _$24,475 $21,158 Operating income before income taxes ~$ 3,527 I 3,910 ~ ~ - ~$ 3 65i
~
Identifiable assets as of December 31 ~$32',818 ~$32J60 ~$ 30,725 Depreciation $ 976 $ 955 $ 932 Construction expenditures $ 1,621 $ 1,842 $ 2,340 Cas Operations 19SO 1979 1978 Operating revenues $13,785 $ 9,786 3 7,920 Operating income before income taxes $ 1,596 $ 1,356 $ 1,185 Identifiable assets as of December 31 $12,949 $11,097 $ 8,987 Depreciation $ 355 $ 282 $ 250 Construction expenditures 3 2,212 _$ 1,429 $ 758 Total Company 1980 1979 1978 Operate; revenues $42,310 $31,261 $29,078 Operating income before incos,e taxes $ 4,123 $ 5,266 3 4,839 Income taxes . (1,076) (1,7a2) (1,606) Non-operating income 156 89 201 Net inmme deductions (1,500) (1,332) (1,474) Net income . $ 1,703 $ 2,261 $ 1,960
~ -~
Identifiable assets as of December 31 $45.767 $4f557 ~$39,7f2' Unallocated assets, primarily working capital..... 9,753 7,256 4,513 Total assets as of December 31
$54520 $50g .$44.2_52 Depreciation $ 1,331 $ 1,237 $ 1,182 s Construction expenditures $ 3.833 $ 3,271 $ 3,098 Expenses used to determine operating income before taxes are charged directly to either segment or are allocated in accordance with factors contained in cost of service studies which were included in rate applications approved by the DPU. A> sets allocated to each segment are based upon specific identification of such assets provided by Company records. Assets not so identified represent primarily working capitalitems.
Note 12. Property Tax Appeal In Ot >ber,1950, the City of Fitchburg (the " City") increased its total property tax levy by over 20% and implemented classification for its 1981 fiscal year. Ily an amendment to the hiassachusetts Constitution, classificatio.4 authorizes a city to classify real property according to its use into no more than four classes and to assess, rate and tax such property differently in the classes so established, but l proportionately within the same class. The increased tax levy and the implementation of classification l increased by 56% on an annual basis the amount of the property taxes billed to the Company by the City commencing July 1,1950. A group of industrial and commercial taxpayers within the City commence 1 court action against the Afassachusetts Commissioner of Revenue and the City on three issues. On January 26,1931, the Suffolk Superior Court (the " Superior Court") issued a hiemorandum of Decision which supported 42 1
FITCI1 BURG GAS AND ELECTRIC LIGIIT CO.\fPANY AND SUBSIDIARY
}
NOTES TO CONSOLIDATED FINANCIAL STATEhfENTS-(Continued) (Information subsequent to December 31,1950 is unaudited) Note 12. Property Tax Appeal - (Continued) the taxpayers on two of the three issues. In that decision, Superior Court Justice Young found that the City must use free cash available at the end of fiscal 19SO of $1,610,330 to reduce the fiscal 1981 tax rate and that the remaining tax bills for real and personal property due during fiscal 1981 must be reduced to reflect the available free cash. The Superior Court further declared "that the Commissioner's decision to permit tax classification in Fitchburg is arbitrary and therefore of no force and effect". The decision further stated that "further equitable orders will await the rescript of an appellate court". Subsequent to the Superior Court decision, the SJC scheduled the matter for hearing on hfarch 2,1981. The SJC remanded the case to the Superior Court and ordered the Superior Court to dis-miss in the absence of ten plaintiffs who are natural persons domiciled in the City and paying taxes there. The SJC did indicate that in its view the City had failed to use available free cash to reduce its fiscal 1981 tax levy, but did not propose a remedy. The Superior Court dismissed the action on
.\farch 25,1981. The Company and other taxpayers (including ten natural domiciliaries) have filed separate suits with respect to these issues.
As a result of the Superior Court's January 26,1981 decision, the Company has reduced property tax expense for the period July-December,19S0 by approximately $65,000 to reflect the effect of avail-able free cash being used to reduce the tax rate. This reduction in expense is equivalent to 6.5c of earnings per average common share. The Company has not reduced 1980 property tax expense to re-flect the Superior Court's invalidation of classification since the Judge's decision did not state how the City would remove the effect of classification in fiscal 1981. Ilowever, management estimates property tax expense could be further reduced by as much as $222,000 or the equivalent of 22c in earnings per average common share. Note 13. Common Stock On June 4,19SO, the Company sold to the public 100,000 shares of Common Stock at $23 per share. Net proceeds of approximately $2,092,000 were ust.d to reduce short-term borrowings incurred in comection with the Company's construction program. The Company issued an additional 3,002 shares of Common Stock at $22.375 per share to the Company's TRAESOP on November 12,19S0. Note 14. Quarterly Financial Data (Unaudited) Summarized quarterly financial data for the quarters ended Afarch 31,1979 through Af arch 31, 1981 are as follows: Three Afonths Ended (In thousands, except earnings _per share amounts) hfarch 31 _ June 30 1981 1950 1979 1950 1979 Total operating sevenues $14,642 $13,M0 $9.263 $8.884 $7,941 Operating income $ 1.210 $ 1,Itu $ 943 $ 629 $ 690 Net income .... $ 757 5 71T $ 655 $ 278 $ 425 Eacnings per average commor. share $1.23 $1.47 $1.23 $.43 $.78 Sept.30 Dec. 31 1950 1979 19S0 1979 Total operating revenues $8,561 $7,790 $11,325 $9,031 OperatirJ income $ 515 $ 667 $ 802 $1,201 Net income .... $ 269 $ 319 $ 419 $ 80 Earnings per aserage common share $.36 $.55 $.63 $1.73 ( Net income for the quarter ended December 31, 1979 has been increased by approximatmiy ? J $376,000 or $.83 of earnings per average common share resulting from abatements of real estate taxes. 43
FITCIIBURG GAS AND ELECTRIC LIGIIT COhlPANY AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEAfENTS - (Concluded) (Information subsequent to December 31,1980 is unaudited) Note 15. Pro For na Earnings Per Share (Unaudited) On a pro forma br es, assuming the a.lditional Common Stock offered hereby was outstanding for the entire twelve months ended Alarch 31,1981, and assuming the net proceeds thereof, estimated at $2,250,000, were applied to the retirement of short-term debt, consolidated earnings per average common share would have been $2.465. Note 16. Unaudited Financial Statements The financial statements for the twelve months ended Afarch 31,1981 are unaudited. IIowever, in the opinion of manrfment of the Company, all adjustments (consMing only of normal recurring accruals) necessary for fair presentation of the consolidated finsacial position and results of operations for such period have been included. On hf arch 24,19S1, the common shareholders voted to amend the ompany's Articles of Organ-ization to increase the Company's authorized capital stock by $5,011,000, consisting of 59,110 shares of Cumulative Preferred Stock, $100 par value. This increase became effective on Af ay 13,1981 when appropriate Articles of Amendment were filed with the Secretary of The Commonwealth of h!assachusetts. On April 24,1981, the DPU approved the Company's request to amortize over a five-year period approximately $207,000, representing the Company's gross expenditures including AFUDC less previ-ously deferred income taxes and related tax savings (approximately $S7,000) in the cancelled hiontague Units. In hfay,1981, the Company's line of credit arrangements for short term debt were increased to $13,700,000. O o
s UNDERWRITING The Undenvriters named below have severally agreed, subject to the terme and canditions of a purchase agreement, to purchase from the Company the following respective numbers of shares of Additional Common Stock: Underwriter Number of Shares hierrill Lynch, Pierce, Fenner & Smith , Incorporated . 52,000 l Blyth Eastman Paine Webber Incorporated 18,000 E. F. Ilutton & Company Ina. 18,000 Kidder, Peabody & Co. Incorpeted 18,000 Advest, Inc. 5,000 Afoseley, IIallgarten, Estabrook & Weeden Inc. 5,000 Tucker, Anthony & R. L. Day, Inc. 5,000 Burgess & Leith Incorporated 4,000
- Total . 125,000 The purchase agreement provides that the Undenvriters are committed to purchase all of the shares of Additional Common Stock if any are purchased.
i hierrill Lynch, Pierce, Penner & Smith Incorporated, One Liberty Plaza, New York, New York 100S0, the Representative of the Undenvriters, has advised the Company that sales of shares of Addi-
. tional Common Stock to certain dealers may be made at a concession of $.65 per share and the Undenvriters may allow, and such dealers may reallow, discounts of not in excess of $.25 per share on sales to ce.hin other dealers. After the initial public offering, the publ?.' offering price, concession and reallowanse may be changed.
The Company has agreed to indemnify the several Undenvriters against certain civil liabilitics, . including liabilities under the Securities Act of 1933. ? i I m 45 _, . _ .. _ _. . . . _ , _ - . . . , - _ - _ . . - - _ _ . _ _ . _ _ - _ - - ~ . . - . _ - . _ . -
Fitchburg Gas $ and Electric Light Company 125,000 Shares Common Stock ($10 Par Value) PROSPECTUS O I Merrill Lynch White Weld Capital Ma-kets Group Merrill Lynch, Pierce, Fenner & Smith Incorporated 4 i s
. Dated June 16, 1981
I l i 4 i TOWN OF F.tSON LIGHT & POtiLR DEPARTMENT i i Units No. I and No. 2 Seabrook Nuclear Power Station Seabrook, New Hampshire Information furnished pursuant to 5 50.33 of Commission's Rules and Regulations with respect
- to the particular Applicant named above as part of Final Safety Analysis Report and Operating License Application for the above Units.
i I July 1981 .i I n i e i i
- - . , . - . , , . . , ,,,,,...-,,-_,__---,..,,,,,.-,-n,,,n-,,.--,-_-,.---n-,.--,,.,--. . . , . , . - , - . , , . . . . . . , , ~ . - .
- 1. ORGANIZATION AND CONTROL (a) Name of Applicant Town of Hudson Light & Power Department (b) Address of App'licant 49 Forest Avenue Hudson, MA 01749 (c) Description of Business of Applicant Hudson Light and Power Department is an authorize:
Municipal Electric Utility. We are engaged in the retail sale of electricity in the Towns of Hudson, Stow, and in sections of Berlin, Bolton, Boxboro, Harvard and Marlboro, MA (d) Corporate Organization The Town of Hudsen Light & Power Department is a municipal corporation incorporated under the laws of the Commonwealth of Massachusetts.
; (e) Corporate Officers and Directors 1
The names and residence addresses of the members of the Municipal Light Board and the Manager are as follows: NAME RESIDENCE Roland L. Plante 136 Murphy St. Hudson, MA 01749 Richard J. Dion 110 Murphy St. Hudson, MA 01749 Robert F. Wood 14 Parkhurst Dr. Hudson, MA 01749 l MANAGER - Hornt Huehmer 23 Plant Ave. Hudson, MA 01749 All of the members of the Municipal Light Board and l Manager are citizens of the United States of America. L The Hudson Light & Power is not owned, controlled or dominated by an alien, foreign corporation or l foreign government. II. FINANCIAL QUALIFICATIONS l Under the Joint Ownership Agreement, The Town of I i Hudson Light & Power Department is responsible for its ownership Share of the operation and maintenance cost of l the Units which, when the pending transactions described herein have been consummated prior to commercial operation O(^T
a will be .07737 of those costs, and a similar percentage of the ultimate cost of decommissioning the Units. Based upon the estimates set forth above under Part IV of the. General Information, The Town of Hudson Light & Power Department's share of these costs should amount approx-imately to S116,000 and $116,000 for the first five years of operations of Units 1 and 2, respectively; and approximately $33,000 to $67,000 for the , decommissioning of the two Units. In addition, The Hudson Light & Power Department's share of fuel expenses during the period would be S397,000. As evidence of its financial qualifications to meet those costs, The Town of Hudson Light & Power submits herewith: () (i) State Report (ii) First Quarter 1981 Financial Statement (iii) Recent rate request from Mass D.P.U. III. REGULATORY AGENCIES AND PUBLICATIONS i A. Regulatory Agencies l As a municipal electric system, the Hudson Light & Fower Department is governed by the Massachusetts General Laws, Chapter 164, sections 34 to 59A, as applicable to it. These sections provide for regulation by the Massachusetts Department of Public Utilities for.some, f but not all, purposes. l ! B. Publications 4 The following. publication is used by the Hudson Light , O (_,/ and Power Department for official notifications,:and/or , are otherwise appropriate for notices regarding this unit: l 1 l l l Hudson Daily Sun 250 Maple Street l Marlboro, MA 01752 l E i
g Efje 60!!UH0nbealtIJ Of Ma##lICIjusetts - OFFICE OF THE
;) DEPARTMENT OF PUBLIC UTILITIES 100 Cambridge Street Boston, Massachusetts 02202 To the Mayors, Selectmen, Municipal dght Boards and Managers of Municipal Lighting in the Several Cities and Towns in this Commonwealth operating Gas or Electric Light Plants:
This form of Annu:d Return should be filled out in duplicate and the original copy returned to the Office of the Department of Public Utilities, Accounting Division,167 State IIouse, Boston 33, Mass., by MARCII 31st in accordance with the requirements of the statutes of the Commonwealth of Massachusetts and the regulations of the Depanhent made in pursuance thereof. Where the word "None" truly and completely states the fact, it should be given as the answer to any particular inquiry or portion of an inquiry. If respondent so desires, cents may be omitted in the balance sheet, income statement and supporting schedules. All supporting schedules on an even-dollar basis, however, shall egree with even-dollar amounts in the main schedules. Averages and extracted figures, where cents are important, must show cents for reasons ivhich are apparent. Special attention is called to the legislation in regard to the Returns printed on the last page. , Inquiries and other communications in relation to Returns should be addressed to the ; DIRECLR OF UTILITY ACCOUNTING 1 0 !
EfJc ContmonLucaltf) of 91a%%atf)u%ctts - G(D r RETURN OF THE N . . . 0F IIUDSON IGIIT& POWER DEPARTMENT ,, , TO THE DEPARTMENT DF PUBLIC UTILITIES OF MASSACHUSETTS For the Year Ended December 31, 1980 Name of offic + to whom correspondence should I . !!orst ,lipehmer , , be addressed regarding this report. (, , , ,, ,,, Official title. . . . Manage.r. . . . Oflice addreu.. . 4 9. F9.r,est , Aven.u.e ,
'~~^""~
O "^ " "^ '' - M
l l TABLE OF CONTENTS
~,
- Page General Inform:i, tion 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 Town Notes 7 Cost of Plant 8-9 Comparative Balance Sheet 10-11 Incame Statement 12-13 Earned Surplus 12 Cash Balances 14 i Materials and Supplies 14 Depreciatior 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 21 Appropriations of Surplus Mumcipal Revenues 22 Purchased Power 22 Sales for Resale 22 Electric Operating Revenues 37 Sales of Electricity to Ultimate Consumers 38 Electric Operation and Maintenance Expenses 39-42 Taxes Charged During Year 49 Other Utility Operating Income .0 Income,from Merchandising, Jobbing and Contract Work 51 ')
Electric Energy Account 57 Monthly Peaks and Output 57 Generating Station Statistics 58-59 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 6S 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 Page ~ q p. Utility Plant-Gas , 19-20 Xfa 'Gdnfrating Plant 74 Gas Operating Revenues 43.:!Boile}s? 6 75 Sales of Gas to Ultimate Consumers . 44 " ScFubbers, Condensers and Exhausters 75 Gas Operation & Maint. Expenses 45-47 Purifiers 76 Purchased Gas 48 Holders 76 Sales for Resale 48 Transmission and Distribution Mains 77 Sales of Residuals 48 Gas Distribution Services, House Governors Record of Sendout for the Year in MCP 72-73 and Meters 78
)
PAGES INTENTIONALLY OMITTED: 23 to 36 and 53 to 56
GENERAL INFORhfATIoN.
~ .)
- 1. Name of town (or city) rnakir g this report. Hudson, Massachusetts 01749 '
- 2. If the town (or city) has acquired a plant.
Kind of plant, whether gas or electric. Electric Owner from whom purchased,if so acquired. Hudson Electric Light Companduly 1,18 91 y , Date of Record votesFirst et votes: to vote: acquire Yes, a 30 plant in accordance
; No, 7 with Second the provisions vote: Yes, 69 of chapter
; 164" 9of "3
Date when town (or city) began to sell gas and electricity, January'15, 1897
- 3. Name and address of manager of municipallighting:
Horst Huehmer 49 Forest Ave. Hudson, MA 01749
- 4. Name and address of mayor o selectmen:
Chairman: Richard E. Frye, 549 flain St. Hudson, MA 01749 Clerk: Jon E. Z iori, 13 Johnson Ave., Hudson, MA 01749 Richard Beauregard, 42 Green St. Hudson,.14A 01749
. George McGee, 271 Cox St. Hudson, MA 01749 Paul R. Boire, 10 Ridge Rd., Hudson, MA 01749
- 5. Name and address of town (or city) treasurer:
David J. O'Nei.] 24 Ruthellen Rci. _d ,' Hudson, MA 01749
) 6. Name and address of town (or city) clerk:
Ra1ph Warner 18 Riverview St. Hudson, MA 01749
- 7. Names and add,mes of members of municipallight board:
Chairman. Roland L. Plante,- 136 Murphy St. Hudson, MA 01749 Clerk: Ricnard J. Dion, 110 Murphy St. Hudson, MA 01749 Peter R. Keane, 15 John Robinson Rd. Hudson, MA 01749 S. Total valuation of estates in town (or city) according to last State valuation 3 214,800,000.00
- 9. Tax rate for all purposes during the year: $ 67.60
- 10. Amount of inanager's salary: $ 39,612.58 L.
- 11. Amount of manager's bond: $ 1,000.00
- 12. Amount of salary paid to mer.oers of municipallight board (each): s 400.00
4
.P..O.W..E.R....D...E..P..A..RT..ME.NT 80 .
.. ..Yrr cad::d Decimb i.r 31,19...,
Annuit report of.. TOWN
.. ...O. F...I.I.U D.S O..N...L. I..GH..T....A..N..D.
FUltNISif SCIIEDUI.E OF ESTI3f ATES REQUIRED BY CENERAL LAWS, CIfAITER 164, SECTION 57 FOR CAS AND El.ECTRIC LICIIT l'LANTS FOR Tl!E FISCAL YEAR, ENDING DECE3!!!ER 31, NEXT. r Amount. - INCO.'.tB FRO.st PRIVATE CONSUMERS: 1 From sales of gas. 2 From : ales of electricity. 10,608,800.00 , TOTAL 10,608,800.00 4 5 ExrENsrs: 6 For operation. maintenance and repairs. . . .. 10,117,000.00 7 For interest on bonds, notes or scrip.. . ... . . .... ... .. None 8 For depreciation fund ( 5 per cent. on s 10,20 8,5 30. 4 8s per page 9). 510,426.52 9 For sinking fund requirements... .. . .... . .. 13,400.00 10 For note payments. . ... . . . . ... . None 11 For ber.d payments. . . .. .... . . ....... . . ... None 12 For loss in preceding year. ... .. .. ... . . . . ..... None 13 10,640,826.52 TOTA . 14 15 cost: FOR FISCAL YEAR ENDING 6/30/82 one 16 Of gas to be used for municipal buildings. . .. . .. ......... .. . 17 Of gas to be used fer street lights., . .. ..... .. .. . . . None 18 Of electricity to be used for municipal buildings. .. . 366,604.00
! 19 of electricity to be used for street lights. . 82,000.00 20 Total of the a bove items to be included in the tax levy. 448,604.00 21 22 New construction to be included in the tax levy. None 23 Total amounts to be included in the tax le'vy. 448,604.00
)
CUSTO31ERS Names of the cities or towns in which, the plant supplies Names of the citie, or towns in which the plant supplies G AS, with the number of customers' meters in each ELECTRICITY, with the number of customers' meters in ead. l Number of Customers' . Number of Customers' City or Town eeter s. Dec. 31 City c. '*own M eters. Dec. 31 Hudson 5873 Stow 1848 l l NOT APPLICABLE Berlin, Bolton, Boxboro, Harvard, Maynard, Marlboro 96 O sy. m -
. TOTAt.E
.TOTALfi$' ;f :7g17 c ,
5 Annu11 rsport cr..10.El..W.ll.V.9.W h UIE E- - * #" ~ ""* APPROPRIATIONS SINCE IIEGINNING OF YEAR iinclude also all items charged direct to tax lesy, even where no appropriation is made or required.) t ; wj FOR CONSTRL'CTION OR PL'HCil45E OF P! ANT: At meeting 19 , to le paid from t S
*At meeting 19 , o be paid from t TOTA t.
$__ None__ _ _
FOR THE ESTikfATED COST or THE CAS OR ELECTRICITY TO DE t' SED BY TifE CITY OR TOWN FOR:
- 1. Street lights. ..... ... ................ ......
s 56,000.00 J. Municipal buildings. . Amounts, .a r.e . included. .in. overall. appropr ia tions .
- 3. for each Department _ ._._ _
TOTA . s 56,000.00--
*thre of niceting and whether regular =>r specal. filere insert bon.ls. nates or eam lery.
CIIANGES IN TIIE PROPER IT
- 1. Describe briefly all the important physical changes in the property during the last fiscal period including additions, alterations or improvements to the works or physical property retired.
In electric property: NC1E In gas proper,t /: ' NOT APPLICABLE d 49
3 BONDS l; (Issued on Account of Gas or Electric Lighting.) Period of Payments Interest ' 1 when Authorized
- Date of Issue Original Issuest Amounts When Paysble Rate When Payable i
- -3
+O April 7, 1913 Spec. June .1, .191: S 9,000.00 II$
March 4, 1918 Reg. April 1,191E 50,000.00 i. ~o June 14, 1920 Spec.Feb. 1, 192] 25,000.00 im March 5, 1928 Reg.Nov. 1, 1928 40,000.00 jg Nov. 29, 1954 Spec.Nov. 1, 192E 250,000.00 ja March 7, 1955 Reg.May 1, 1955 100,000.00 jo March 7, 1955 Reg.Nov. 1, 1955 150,000.00 i[ June 8, 1959 Spec. Aug . 1, 19 55 300,000.00 i *j Nov. 7, 1961 Spec. July 15, 19C 2 450,000 00 IN " i L=-
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it 1 O 2 I TOTAL sl,374,000.00 TOTAL
?'
The bonds and notes outstanding at end of year should agree with the Balance Sheet. When bonds and notes are repaid report the $rst three columns only.
'Date of meeting and erhether regular or special.
h f ust originalissues of bonds and notes including those that have been ,eti,ed. s .s
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> os TOTAL COST OF PLANT -ELECTRIC j
- 1. Report below the cost of utility p!:r.t in service ceding year. Cuch items shotild he ir.cluded in column c!Tect of such ait.ounts.
~
necording to prescribed necounts. (e) cr (d) as appropriate.
- 2. Do not include as adjustinents, corrections of 4. Reclassifiestions or transfers within utility !>! ant 4
- 3. Credit adjustments of plant necounts should additions and retireraents for the current or the pre. be enclosed 1.1 parentheses to indicate the negative accounts should be shown in column (f). 2 Balance .
Be ginnief Line A6 count Bata vg O of Year Additions Retirements Adjustments te (a) Tra nsfers End of Year i :4 (b) (c) (d) (e) (f) (g) :M iO
- N t,.
I 1. INTANGIBLE PLANT., 3 5 $ 5 $ $ [5
- 6 3 iM 4 _ j.
5 2. PRODUCTION PLANT ., 6 A. Steam Production i I' 7 310 Land and Land Rights. i 8 9 311 Structures and Imp ovements. 312 Boiler Plant Equt : e..t.
'h j
10 313 Engines and Engint Driven , i r7 Generators. . . :i
- c 11 314 Turbogenerator Units. :~
12 315 Accessory Electrie Equipment. .. !f 13 316 Miscellaneous Power Plant j2 14 Equipmer.t . . .
- f3 15 Total Steam Product'en Plant.
B. Nuclear Product!or. Plant Ih 16 jy 17 320 Land and Land Rights. . 944.00 944.00 18 -321 Structures and improvement =. . f 19 322 Reactor Plant Equipment. . . . i 20 323 Turbogenerator Units. . .. I" 21 324 Accessory Electric Equipment. . i 22 325 Miscellaneous Power Plant ;f Equipment. . . . . . . ; 23 Total Nuclear Production Plant 944.00 & 944.00 ; o A I I
.s D
*O O _
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7.~. 7] (s 7h _g v TOTAL COST OF PLANT - ELECTRIC (Continued) Y E catane. t. Beginning 3 Un. Account of Yea, Additions Reti,ements Dala nce ] No. Adjustment s T,a nsfers End of Yes,. 4 (a) (b) (c) (d) (e) (r) (g)
- 1 C. IIydraulie Production Plant 5 2 330 Land and Land Rights.
5 3 8 3 g ; jQ 3 331 Structures and Improvements. -- id 4 332 Reservoirs, Dams and Waterways :o
- 's 5 333 Water Wheels. Turbines and i=
Generators . . lc
- o 6 334 Actrsory Electric Equip &ent.
7 335 Miscellaneous Power Plant !O Equipment. . . : L~ 8 33G Roads, Railroads and Dridges. i3 9 TotalllydraLie Production Plant , fQ 10 D. Other Production Plant i> 11 340 Land and Land Itights. 5,500.00 j5 jg 12 341 Structures and Improvemer.ts. 330,739.70 5,500.00 13 342 Fuel If olders, Producers and 123,688.30 , 330,739.70 :j t Accessories. . 123,688.30 iN 14 313 Prime Movers. 2,226,533.45 e 61.859.12 15 344 Generators. . 287,549.94 2,288,392[5'7 !$ 16 345 Accessory Electric Equipment. 832,325,87 *
- 287,;549.'4 9 ~$
17 34G Miscellaneous Power Plant 832,325.87 N Equ*pment . . b ' -- * !") 3 ,825,02 ti . 33-- " 5 18 Total Other Production Plant. 61.859J _2_ th2ne None None 3.886.885.45 19 Tot.1 Production Plant. 2 , . 61.8 R.12 None hw i
&nn 3.887.829 45__. j 20 3. TRANSMISSION PLANT 21 350 Land and Land Rights. 53,804.14 :
22 351 Clearing Land and Rights of Way 53,804.14 ;
- 3 352 Structures and Improvements. 168,166.08 7. ' .
24 353 Station Equipment. . . 607,333.14 168;166.08; "y 25 None (309,044.80) 298~,288. 34 j 354 Towers und Fixtures. . 26 355 Poles and Fixtures. . . 657,459.02 None a 27 35G Overhead Conductors and Devices 227,329.01 139,380.00 796,839.02 g 28 357 Underground Conduit. . 258.07 227,329.01 g 29 358 Underground Conductors and None 258.07 g Dnices. . . None* 3 30 None 359 Roads and Trails. . None 5* 31 g Total Transmission Plant. 1,714,349.46 None None None (169,664.80) M . 1,544,684.66 h ** A
t
'~
a TOTAL COST OF PLANT (Concluded) I e.s Da ta,ic e E occinnin, T. e ara nce - L.no Account of Year Additions Retirements Ad just rn e nt s No. Tra nsfer s End of Yea, (J) (b) (c) (d) (e) (f) .(g) 1 4. DISTRIDUTION PLANT lS $ 2 36J Land and Land Rights. None None None None { 3 3G1 Structures and Improvements. 3,441.77 None ig None 3,441.77 3G2 Station Equipment. 189,688.83 37,589.20 3 4 3G3 Storage Battery Equipment. None None 169a664.80 396,942.83 j-] j 5 None None None' 364 Poles, Towers and Fixtures. 399,575.26 j 2 6 6,402.96 None 7 363 Overhead Conductors and Devices 1,041,710.21 41,893.88 405,978.'22 i9i None 1,083,604.09 8 36G Underground Conduit. .. . 71,741.60 19,176.87 None !N 367 Underground Conductors & Devices 90,918.47 39 9 205,914.71 65,230.61 10 368 Line Transformers. 829,742.46 50,866.00 None 271,125.32 !,' None a
':'880",608.46 11 3G9 Services. . . . 264,065.60 18,351.40 None '
iN 282,417.00 j f.j 12 370 Meters. . . . . . 268,017.44 15,281.5/ 1,534.50 281,764.51 i 13 371 Installations on Cust's Premises. 88.77 None None . . . . . . - 8 8 .,7 7 I :,. 14 372 Iesed Prop. on Cust's Premises.. l 223,031.05 b04.04 kl0$ 15 373 Strest Lighting and Signal Systems - 4 @ 5.09 Tot:l Distribution Plant. - 3f497J 817.70 _ 262,456.53 1,534.50 None 169,664.80
- o IG 3.928',~404.53 _ 'd 17 5. GENERAL PLANT :*
18 SS9 Land and Land Rights. None None None !t1 19 300 Structures and Improvements. 425,771.05 ; , pon'e . None None 20 391 Omee Furniture and Equipment. 153,498.75 11,537.73 None
'425'Ol.'05
, 5$
165,036.48 21 392 Transportation Equipment. 247,359.51 None None 247,359.51
!h i r4 22 393 Stores Equipment. 10,704.97 None Nonc 23 394 Toots.Shopand Garage Equipmert 7,472.70 None None 10,704.97 !N 24 395 Laboratory Equipment. 17,691.33 7,472,70 None None 17,691.33 25 39G Power Operated Equipment. 1,138.25 None '
None 1,138.25 26 397 Communication Equipment. 22,698.70 : 569.16 None 23,267.86 i 27 3DS Misce!!nneous Equipment. . . 3,306.00 None None i 28 29 399 0ther Tangible Property. . . Total General Plant. .. .. 6 . 3 5.hi.6
- 895;994.72 None 12,106,89 241.63 241.63 h .h 907.859.98 30 Total Electric Plant in Service.
Total Cost of Electric Plant. .. . .. . 10,268,778.62 1 32 '- 33 Iess Cost of Land, Land Rights, Rights of Way. . . . . . 60.248.14 34 Total Cost upon which Depreetation is based . . .
., 10,208,530.48
{ 2
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10 Anno s ,: port cf., T. O'.'n! 0? !!.U D.3C" .L I ..@ i'..t.::.D. PC'. IP.. .DEPART'.!E!!T
. . . . . ... . . ... Veer Cnded Decernber 31,19.Qu on COMPARATIVE EALANCE SilEET Assets and Other Debna Beler.co T. tie of account "*8'""'"8*' "*'*" "*'****
Une Year End of Year o, '(D ecrea se) too. (e) (b) (c) (d) 1 UTil.lTY PLANT 2 101 Utility Plant - Electric (P.17). 4,939,641.56 4,975,882.52 36,240.96 3 101 Utility Plant - Gas (P. 20). . Ncae None None 4 5 Total Utility Plant. 4,939,641.56 4,975,882.52 36,240.96-6 7 8 9 10 11 FUND ACCOUNTS 12 125 5 inking Funds. None None None 13 126 Depreciation INnd (P.14). . 1,380,208.42 1,432,492.15 52,283.73 14 128 Other Special Funds. 66,884.56 17,595.26 (49,289.30) 15 Total Funds. 1,447,092.98 1,450,087.41 2,994.43 16 CURRENT AND ACCRUED ASSETS 17 131 Cash (P.14). 81,974.00 13,729.37 (68,244.63) la 132 Special Deposits. 88,374.42 98,060.33 9,685.91 19 135 Working Funds. 100.00 200.00 100.00 20 141 Notes Receivable. None None None 21 142 Customer Accounts Receivable. .,. 591,477.74 809,887.25 218,409.51 22 143 Otl.er Accounts Receivable. 26,452.78 45,060.84 18,608.06 ) 23 146 Receivables frorn h!unicipality. 20,129.72 74,988.12 54,858.40 24 lies ( P.14) . 454,174.80 676,322.98 222,148.18 ,,5 171 Int. & Div1 151 Materiah and Supbends Receivable 37,910.01 26,626.57 (11,283.44) h 1,] pace g Utility Revenues p 157,898.30 Nonc 196,326.42 196,326.42 27 174 Miscellaneous Current Assets. 146,339.86 (11,558.44)
% 2 2 2S ! Total Current and Accrued Assets.. 1,458,491.77_ 2 ,0_90 ,SY%
176.74 631'& Mh 684.97 29 DEFERRED DEIIITS 30 181 Unamortized Debt Discount. None None None 31 132 Extraordinary Property Losses. None None None 32 185 Other Deferred Debits. 41,477.39 275,239.72 233,762.33 33 Total Deferred Debits. _ 41,477.39 275,239.72 233,762.33 35 l Total Assets and Other Debits. --7886 7 T703-70-- 8,7917386d9- -904 602T69- 7
\
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r 11 ALnual ,Ip'.rt (f. . . .T. o N.m. . !. . .O. .F. . .H. .U. .D. .S. .O. .N. . .L.I. .G. .!.!T. A N. D. .PO. W. E R. D. E P A RT..M.EN'I
..Yar tndid Dicinb3r 3l 198()
COMPARATIVE DALANCE SIIEET Liabilities and Other Credits
}
Dalance Beginning of Balance increase Title of Account Year End of Year or (Decrease) No. (a) (b) (c) (d) 1 APPROPRIATIONS
'.0 201 Appropriations for Construction s None None None 3 SURPLUS 4 f05 Sinkirig Fund Reserves'.' . ; , None None None 5 206 fygggggy[gerg g .Mtm i d i ba l i tv . . 1,925,000.00 1,925,000.00 .00
.6 207X9WM)>MysM.g snxxxatF Kakxway A.xxx 20,093.39 20,093.39 .00 7 208 Unappropriated Earned Surplus (P.12). 5,108,903.44 5,626,428.38 517,524.94 8 Tota! Surplus. 7,053,996.33_ 7,571,521.77 517,524.94 9 LONG TEftM D.EBT 10 221 Bonds (P. 6). a. . . . , None None None 11 231 Notes Payable (P. 7), . . None None ~
None 13 Total Bonds and Notes. None None None 13 CURRENT AND ACCRUED LIABILITIFA 232 Accounts Payable. 703,347.22 999,490.30 296,142.78 14 234 PayaHes to Municipality. None None None 55 235 Customers' Deposits. 88,374.42 98,060.33 9,685.91 16 57 236 Taxes Accrued. None None None IS 237 Interest Accrued. None None None. 19 242 Miscellaneous Current and Accrued Liabilities 2,885.23 83,864.29 80,979.06 50 Total Current a d Accrue.d Liabilities. 794.606.87 _12181,R4 . 62 386.807.75 21 DEFERRED CREDITS 22 251 Unamortized Premium on Debt. None None None 23 252 Customer Advances for Construction. 38,100.00 38,450.00 350.00 24 253 Other Deferred Credits,. None None None 25 . Total Deferred CWits. 46,100.00 38,450.00~' 3 50.0F 26 RESERVES 27 260 Reserves for Uncollectible Accounts. 28 261 Property Insurance Reserve. 29 262 Injuries and Damages Reserves. 30 263 Pensions and Benefits Reserves. 31 ".:65 Miscellaneous Operating Reserves. 32 Total Reserves., . None None None 33 CONTRIBUTIONS IN AID OF CONSTRUCTION 34 271 Contributions in Aid of Construction None None None 35 Total Ll abilities and Other Credits. .. 7,886,703.70 8,791,386.39__ 904.682.69 State below if any earnings of the municipal lighting plant h ve been used for any purpose other than discharging indebted-ness of the plant, the purpose for which used and the s. mount thereof. l l
ja-EPARTMENT Annu;l r port (f..T.o..m.. : .07. !!"..D 30. ::..L.M.
. .. 'c....A.!!D....PO?3R D. . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . ..y STATEh!ENT OF INCOAfE FOR TIIE YEAR 9
Total . Increase or (Decrease) from Account Current Year Preceding Year Une No. (a) (b) (c) 1 OPERATING INCOME 2 400 Operating Revenues (P.37 and 43) . .. S8,004,829.97 S2,441,065.99 3 Operating Expenses: 401" Operation Expense'(P.'42 and 47) . . . . 6,856,867.57 2,164,7").1.72 4 5 402 Maintenance Expense (P. 42 and 47) . < . .. . 203,337.93 (33,168.94)
- c. 403 Depreciatioir Expense. .. . . .. 4933694.20 6,507.97 7 '407 Amortization of Property Losses. ..s None None 3 5' '- '
9 408 Taxes (P. 49). . . . 2,345.40 2,345.40 10 Total Operating Eipenses. . .. .. .... 7,556,245.10 2,140,406.15 11 Operating Income. .. .... . . .. .. .. 448,584.87 3300,659.84 12 414 OtFer Utility Operating Income (P. 50). . .. . .. ... None None 13 14 Total Operat'ing Income. . . .. . . .. 448,584.87 300,659.84 15 OTIIER INCOME 16 a ls inenme from Merchandising, Jobbing and Contract Work (P. 51) None (362.53) 17 419 Interest Income. . 189,650.06 63,589.78 1( 4,21 Miscellaneous,Nonoperating Income: e e. None (63.77) - M Total Other Income. 189,650.06 _ 63,163.48 20 Total Income. . .. 638,234.93 363,823.32 21 MISCELLANEOUS INCOME. DEDUCTIONS ) 22 425 Miscellaneous Amortization. 42G Other Income De' ductions. f 23 24 Total Income Deductions. None None is Income Before Interest C'harges. ... . 638,234.93 363,823.32 26 , INTERPST CHARGES 27 427 Interest on Bonds and Notes. 2s 428 Amortization of Debt Discount and Expense. 29 429 Amoriization of Premium on Debt-Credit. 30 431 Other Interest Expense. 1,218.54 1218.54 31 432 Interest Charged to Construction - Credit. Total Interest Charges. 1,216.54 1216.54 32 "13 NET INCOME- - l 637,016.39 362,604.78 l EARNED SURPLUS Debits Cr edits o$ (a) (b) (c) 208 Unapp opriated Earned Surplus (at beginning of period). 5,108,903.44. 34 35 3G 37 133 Balance Transferred from Income. 637,016.39 43 Miscellaneous Credits to Surplus (P. 21). . . . . . 55,508.55 33 39 435 Miscellaneous Debits to Surplus (P. 21). . 40 436 Appropriations of Surplus (P. '?). 175,000.00 i 41 437 Surplus Applied to Deprecir. tion. ' 5,626,4'?8.38 12 20s Unappropriated Earned Surolus (at end of period).
#3 l l mms 5,801,428.38 5,801,428.38 44
3 A nnua l rt ptet of. TOV'N . . . . .. 07
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.. . . . . . . . . LI'3:if
. . . . . .A . .. . . . . . ...
. .. .M.D.. . .P. .C.a.7. 2. R. ..D. .E. .P. .A. .R.T. .M. .E..N. .T. . . . ...... .......... Ye a s STATEMENT OF INCOME FOR THE YEAR
~
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[ Dectric Gas - k V
/ increase or increase or (Decrease from (Decrease) from Current Year Preceding Year Current Year Preceding Year Line (d) (e) (f) (S) No.
1
. 2 3
4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 t * .i i..rt 23 24 25 26 27 28 23 30 31 32 1 33 h
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14 Ennust riport ov.,
. TO?l! OF !!'!D 3T! f "
.' . . . . ". D. . .P.
. . 0. "..T. 2. . .D. .F.' P. . A.
,R. .T. .M. .E. N.T. . . . . . . . . . . . . . . . . . . . Yea r c nd ed Dec em ber 31. E .S CASit DALANCES AT END OF YEAR (Account 131)
. ~
Line items Amouot No. (a) (b) 1 Operation Fund. (131) . . 13,729.37 2 Interest Fund. . . None 3 Bond Fund. ......... None 4 son Fund . . .I.N.0.I. . . . . . . . . . 7,026 90
- 5. sce C nstru[laneous Cash (128) 6,065.36 6 Advances from Contractors (128) 4,503.00 7
8 9 10 11 12 vorat 31,324.63 hfATERIALS AND SUPPLIES (Accounts 151-159, 163) Summary Per Balance Sheet Amount End of Year une ACC ""' Electric Cas No. (a) (b) (c)
'3 Fuel ( Account 151) (See Schedule. Page 25.t 474,502.76 14 Fu 1 Stock Expenses (Account 152).
15 Readuals ( Account 153). 16 Plant Materials and Operating Supplies (Account 154). 201,820.22 ) NOT 17 Merebandise ( Account 155). APPLICABLE 18 Other Materials and Supplies (Account 156). 19 Nuclear Fuel Assemblies and Components -In Reactor (Account 157). 20 Nuclear Fuel Assemblies and Components -Stock A'ecount (Account 158) 21 Nuclear Byproduct Materials (Account 159). . .. 22 Stores Expense (Account 163). 23 Total Per Balance Sheet $. 676,322.98 DEPRECIATION FUND ACCOUNT (Account 136) Line Amount No. (a) (b) 24 DEBITS 25 Balance of account at beginning of year. - 1,380,208.42 26 Ir.come during year from balance on deposit. 179,026.91 27 Amount transferred from income. 493,694.20 R3imbJmoment of Plant Inves,tment Items 91,188.38 29 2,144,117.91 Torat 30 CREDITS 31 Amount expende i fc,r construction purposes (Sec. 57, C.168 of G.LJ. 711,625.76 32 Amounts expended for renewa s, viz.:-
- 33 34 35 3 36 I 37 38 39 Dalance on hand at end of year. . . , . . 1,432,492.15 40 Total 2.144.117.91
-~
,"X
.. J UTILITY PLANT-ELECTRIC '
3 E
- 1. Report below the items of utility plant in se vice ceJNg year. Such items should be included in column effect of such amounts. !
according to prescribed accounts. . (c ). 4. Reclassifications or transfers within utility plant
- 2. Da not inelade as adjustments, corrections of 4*
- 3. Credit adjustments of plant accounts should accounts should bv shown in column (f). g ud litions and retirements for the current or the pre- be enclosed in parentheses to indicate the negative a' Bala nce Beginning ' e3 Account of Year Depreciation Adjustments
- Bala nce Q Line Additions Other Credits Transfers End of Year No. (a) (b) (c) (d) .3~~
(e) - (f) (g) :
* ~
'o
=
1 1. INTANGIBLE PLANT $ $ $ $ $ $ , bi
- u 3
{El 4 . L 5 2. PRODUCTION PLANT {[ 6 A. Steam Production j ii 7 310 Land and Land Rights. :. 8 311 Structures and Improvements. }U 9 312 Boiler Plant Equipment. iy 10 313 Engines and Engine Driven [j Generators. . *t4
. :)
11 314 Turbogenerator Units. - t5 12 315 Accesary Electric Equipment. to 13 316 htiscellaneous Power Plant $$ w 14 Equipment. : 15 Total Steam Production Plant. .i $p 16 B. Nuclear Production Plant :4 17 320 Land and Land Rights. . 944.00 None None None None 944,og l 18 321 Structures and Improvements. - 19 322 Reactor Plant Equipment. . 20 323 Turbogenerator Units. .
~
21 324 Accessory Electric Equipment. 22 325 hiiscellaneous Power Plant y Equipment. . . A 3 23 Total Nuclear Production Plant 2 944.00 None None None None 944.00 $ 2 I
?,
s Co 0 ;*,
UTILITY PLANT-ELECTRIC (Continued) >E g Balance ?. Be ginnin g 3 Lina Account Adjustments gatene, No. of Yes, Additions Depreciation Other Credits g (a) (b) Transfers End of Year 2 (c) (d) (e) (f) (g) 0 1 C. Ilydraulie Production Plant 8 8 I 8 8 2 330 Land and Land Rights. 8 8 i@ 3 331 Structures and Improveinents. ig 4 332 Reservoirs, Dams and Waterways a 5 333 Water Wheels, Turbines and i1 Generators. . . . . . . j5 6 334 Accessory Electrie Equipment. . !8 7 335 Miscellaneous Power Plant j :] Equipment. . . . . . ic 8 9 336 Roads, Railroads and Bridges.
'un-jq Total Hydraulie Production Plant UW I
10 D. Other Production Plant
'!*l'7 ~ I (UU## il ;,
11 340 Land and Land Rights. 5,500.00 .g 12 341 Structures and Improvements. 34,204.18 5,500.00 13 342 Fuel Holders, Producers and Accessories. . . 27,350.81
. . 3,307.40 30,896.78 i) iN 1,236.88 14 343 Prime Movers. . . . . . . 394,941.04 61,859.12 26,113.93 l*
55,663.34 15 344 Generators. . . . . . . . . 51,459.11 9,377.50 401,136.82 iE
!2 16 345 Accessory Electric Equipment. 159,079.42 42,081.61 17 346 Miscellaneous Pov >:r Plant 35,616.29 123,463.13 jy Equipment. . . . . . . 725.84 i53 93.44 18 Total Other Production Plant., 673,260.40 61,859.12 105,294.85 632.40 629,824.67 i$
19 Total Production Plant.. . . . 674,204.40 61,859.12 105,294.85 j 20 3. TRANSMISSION PLANT 630,768.67 i 21 350 Land and Land Rights. . ... . 53,804.14 rIEONE ![UONE i 3t 53,804.14 22 351 Clearing Land and Rights of Way 33,121.92 4,272.55 i 23 352 Structures and Improvements. 101,913.55 12,649.60 28,849.37 j 24 353 Station Equipment. . . . 47 0.85 934.80 (309,044.80) 89,263.95 ( i 25' 354 Towers and Mxtures. ' On , . On 94 391.25 26 355 Poles and Mxtures. . . . . 524,896.67 67,708.98 [ ONE g 27 139,380.00 596,567.69 1 356 Overhead Conductors and Dev' es 181,493.05 23,411.67 28 357 Underground Conduie, 232.06 158,081.38 y 13.28 29 358 Underground Conductors and , 218.78 3 Devices. . .... .. . [UONo "[UONE
,!UQUE 'T 'lyour [# [EONE { EONU 30 ' song 359 Roads and Trails...
'((UONE
* - ~
31 ' Total Transmission Plant. . 1,367,832.24 1EUE 176,990.88 3 (169,664.80) 1,021,176.56 g a
,- ^
f UTILITY PLANT- ELECTRIC (Continued) Balance Line Beginning Account of Yea, Adjusttr.ents Balance 3 No. . (a) Additions Depreclation Cther Credits Tra nsfers End of Year (b) (c) (d). % (e) 1
- 4. DISTRIBUTION PLANT $ $ $ $ $
(f) (8) , f 2 360 Land and Land Rights. None None $ None None None ja 3 361 Structures and Improvemen'ts. 1,816.36 None :177.22 None 1,639.13 4 362 Station Equipment. , 77,014.38 37,589.20 9,767.64 j] 5 None 169,664.80 274,500.74 363 Storage Battery Equipment. ' None None None !~ 6 None None jO 364 Poles Towers and Fixtures. 85,444.68 28,761.12 19,744.85 7 22,358.16 72,102.95 365 Overhead Conductors and Devices 328,809.78 45,198.32 i := 50,396.63 3,304.44 320,307.03 8 366 Underground Condait. 46,383.11 19,213.92 3,209.4E i@ 9 367 Underground Conductors & Devlees 162,507.71 66,041.85 9,062.72 37.05 831.24 62,350.50 jy 10 368 Line Transformers. 351,154.53 218,655.60 :" 50,896.00 40,183.17 30.00 11 369 Services. . 98,970.63 18,568.09 361,837.36 !C 12 12,632.71 216.69 104,689.26 370 Ateters. 93,329.89 10 16,421.07 12,733.86 1,139.50 13 371 Installations on Cust's Premises. None 95,877.60 3" None None None 14 373 Leased Prop. on Cust's Premiscs.. None .U 15 373 Street Lighting and Signal Systems Ng8458.51 8%83.25 1W891.51 . "S98.21 50',19f. 04 !% 16 Total Distribution Plant. 1,300,889.78 290,151.82 170,579.90 28,295.29 169,664.80 :(3 1.562.431.21 jy 17
- 5. GENERAL PLANT 18 3S9 Land and Land Rights. None 5"
None None None ID 390 Structures and Improvements. 251,123.15 None 21,465.48 None i(J 20 391 Office Furniture and Equipment. 116,270.22 11,537.73 54619.78 229,657.67 [d 21 392 Transportation Equipment. . . 133,111.36 None 11,560.71 122,188.17 j!s 22 393 Stores Equipment. . . . . . 8,437.66 None 428.37 121,550.65 id 23 394 Tools, Shop and Garage Equipment 5,215,78 8,009.29 j$ None 384.79 24 395 Laboratory Equipment. 17,513,43 4,830.99 iH
.. None 8.35 15 396 Power Operated Equipment.. . 1,073.89 17,505.08 i None 32.87 26 397 Communleation Equipment. 11,851.59 1,041.02 is 27 569.16 1,157.99 11,262.76 393 hiiscellaneous Equipment. 2,609.24 None 3 370.23 28 19 399 Other Tangible Property. . 6- d6 553',559.78
*na
- a - 981 O 2,439.01
^ 111 "
[ Total General Plant.. 12,106.89 4 0 ,"8 2 8. 5 ~/ 241.63 None 524;596.47 30 Total Electric Plant in Servlee. 3,896,486.20 364,717.83 493;694.20 28,E 5.92 None 3,738,972.91 { 31 104 Utility Plant I4ased to Others., . None None None None 32 None g 105 Property IIeld for Future Use. Nom None None None 3't h ,8 107 Construction Work in Progress. 1.043.155.36 193,754.25 None None 1,236,909.61 34 Total Utility Plant Electric. . 4,939,641.56 ;; 558,472.08 493,694.20 28,536.92 _ 4,975,882.52 {0 - , I
PRODUCTION FUEL. AND, OIL STOCKS (Included in Account 151) (Except Nuclear Materials) $
- 1. Report below the information called for concerning production fuel and oil stocks. 3
- 2. Show quantitles In' tons of 2,000 lbs., gal:, or Mef., whichever unit of quantity is applicable.
- 3. Each kind of coal or oil should be shown separately. k o.
- 4. Show gus and electric fuels separately by specific use. ;
Kinds t,f Fuel and 0;I !
- q yot. 92 DIESEL -
GAS MCP :L tin; Item Cost Quantity Cost QuantPy No. (a) Cost ! (b) (c) (d) (e) {h,, (f) - On lland Beginning of Year. 320,180.17 : : .:
.~
1 s 1,149,119 320,180.17 2 Received During Year. . . . . I t 191,501.87 668,91J 3 546.924.53 None 193.847 3 None !d 3 TOTAL. 1,511,682.04 Kaa;s77 t?-- ii
... . 1,818,038 8 67 ,10 4 . 7"L 193.B_47 644,577.32 j4 4 Used During Year (Note A). 1,037,179.28 697,835 392,601.96 193,847 644,577.32 .]j 5 .,
6 . 7 8 50 U *
- -a Ib 10
!! Sold or Transferred. None -None None - None None-
*d 12 TOTAL DISPOSED OF. I t0.JL119. 28 a 61L135 392.601.96 143.847 13 BALANCE END OF YEAR. 474,502.76 1,120,203 474,502.76 644 377. V iQ None ,
None j ['] Kinds of Fuel and Oil.- Continued , , Lin3 Item Qua ntity i- Ea Cost No. (g) (h) (l) Quantity Cost j (D (k) , 14 On lland Beginning of Year. S 15 Received During Year. . . .. g 16 TOTAL., .. : 17 Used During Year (Note A). . 18 .c 19
- 20 h 21 a
o 22 ! 23 24 Sold or Transferred . . b 25 TOTAL DISPOSED OF. .
-[
2G BALANCE END OF YEAR. . - O. Note A -. Indicate specific purpose for which used, e.g., Boiler Oil, Make Oil. Generator Fuel, etc.
'l Annuil Frport af... .TO',7N OF HUD S.O.N..L..I..G.H.T....A..N.D...P. 0. 7..E..R...D.E..P..A..R..T..M..E.N.T............... MISCELLANEOUS NONOPERATING INCOME (Account 421) Line item Ahount
') No. (e) (b) %
1 2 3 4 5
~
^
6 None OTHER INCOME DEDUCTIONS (Account 426) Line item Amount No. (a) (b) l 7 8 9 10 11 12 13 < I I^' 14 None MISCELIJ.NEOUS CREDITS TO SURPLUS (Account 434) i Line item Amount No. (a) (b) 15 Amoco Oil Co. Fuel Oil Settlement 17,048.55 16 New England Power Company Rate Refunds 38,460.00 17 18 19 20 21 22 7 TAL 55,508.55 23 - - - MISCELLANEOUS DEBITS TO SURPLUS (Account 435) t Line item Amount No. (a) (b) 24 25 26 27 r. 2S 29
'30 31 T TA' None 52 ,
APPROPRIATIONS OF SURPLUS (Account 436) Line item Amount No. (a) (b) 33 Transferred to Town Treasury 175,000.00 31 35
' 36 37 N 38 39
**T^'
40 175,000.00 ns
~ ~ . - - _ , - . . . - - , , - - . , , , . - - _ . . - - _ . - _ , . - . - . - - , , _ . -,.- . - _ , - _ , - , . - , , . - - - - - - , - , , .
,o Annual ,eport 1f. .....T017N
............O F I!U D. 3 0..'1...L..I.O..i.!.T...A.
......... Y N..D... .P.".*..*.'.3....')..E.P..A..F.,.DMd................. .. Year ( nd ed Decom' MUNICIPAL REVENUES (Accounto 482,444)
(K.W.II. sold under the provisions of Chapter 269, Acts of 1927) . Average Revenue Gas Schedule Cuble Feet Revenue Received per M.C.F. Line (50.0000) No. Acc'.t No (a) (b) (c) (d) 1 482 n
~
3 NOT] WPLICABLE 4 -- - ToTALb Average Revenus Electric Schedule K.W.H. Revenue Received (bcon.OOO ) (a) (b) (c) (d) 5 444 Municipal: (Other than Street Lighting) All Electric 5,696,700 285,591.49 5.0133 6 Power 3,404,649 207,967.82 6.1083 7 Commercial 305,903 23,482.32 7.6764 8 Yard Lighting 23,110 1,921.20 8.3133 9 10 11 Totals 9,430,362 518,962,8)._ 8 5.5031 12 13 Street Lighting: Town of liudson 1,130,330 53,058.87 4.6941
)4 Town of Stow ,
66,527 5,976.06 8.9829 Towns of Berlin & Bolton . .,276 111.83 9.5094 15 16 17
-TOTALS 1.198 J 33 59.146 3 _ 4.9370 18 39 ToTAts 10,628,395 578,109.59 5.4393 PURCIIASED POWER (Account 555)
Co.t per Names of Utilities Where ano at What K.W.H.
- from Which Electrec - Voltage Heceived K.W.H. Amount (cents)
Line Energy is Purchased (0.0000) No. (a) (b) . (c) (d) (e) 20 21 g3 SEE PAC ES 54 & 55 FOR DETAILS 23 l 24 25 ! 26 27 28 . TOTALS 4,304,386 29 110,909,517 3.8800 SALES FOR RESALE (Account 447) Names of Utilities' Where and at What pe, . to which Electric Voltage Detevered K.W.H. Amount (cents Line Energy is Sold (O.OOOu)) No. (a) (b) (c) (d) (e) 30 31 SEE PAGI S 52 & 53 FOR DETAILS 32 e 33 36 37 38 's TorAts 4,268,495 318,068 7.4515 g i t -
w/ V V t
?
El.ECTRIC OPERATING HEVENUES (Account 400) *_ the
- 1. Report below the amount of operating revenue for added for bining ' purposes, one customer shall be counted year or increase fordecrease each prescribed account and over the precedir.g year.
- 4. Unmetered sales should' be included below. The the amount of for each group of meters so added. The average number details of such sales should be given in a footnote. j 2
of customers means the average of the 12 Sgures at the 5. Classification of Commercial and Industrial Sales, o,
- 2. If increases and decreases are net derived from close of eaca month. If the customer count in the resi. Account 442, according to Small (or Commercial) and -
previouQ reported figures explain any inconsistencies. dential service classification includes customers counted
- fI"d" to the b s,s i o
- 3. Number of customers should be reported on the more than onee because of special services, such as water ;dglonte r u y tkrdin basis of number of meters, plus number of flat rate heating, etc.. Indicate in a footnote the number of such ' basis of classifi$ tion is not i- fr accounts, except that where separate meter readings are duplicate customers included in the classi5eation. demand. See Account:442 o the UniMrm System of *d Accounts. Explain basis of classification. io
- 1 Operating Revenues Average Number of
- m Kilowatt. hours Sold :(:
. Customers per Month j]
incrosse o'r increas w
;9 '*
Amount for (Decrea se) froin Amount for increa se or : Line Account Year (Decrease) from Num' 'for Precedins Year Year (Decrease) from
- t
No. (a) Preced[ng. Year , Year Freceding Year (b) (c) (d) j[ (e) _ (f) (g)- ;g I SALES OF ELECTRICITY $ $ iH 2 440 Residential Sales. . . ... .. ......... 3,213,196.21 741,522.55 ih 53,055,744 ( 564,811) 3 442 Commerdal and Industrial Sales: ' k 9'08 89 !b 4 397,908.11 U Small (or Commercial) see instr. 5. . . 84,837.16 5,021,527 5 Large (or Industrial) see instr. 5. . . . . 3,261,583.38 1,153,379.22 58,661,668 ( 10,785) .6'15 (4) i! *O 13',510,846 'l72. 6 444 Municipal Sales (P. 22) . . .. . . 578,109.59 119,548.64 '10,628,395 ' 6 !N 7 445 Other Sales to Public Authorities.. .. None ( 539,078) -73 1 io None None None 8 446 Sales to Railroads and Railways.. .... None None None
; None !h e 443 Interdepartmental Sales. . ....... None None None None 'None iS 214.MR 74 None None !N 10 449 Misedlaneous Electrie Sales. . .... .. W . m .1 A dan Eq 17 _ n7 t -in j@
11 Total Sales to Ultimate Consumers. . . . 7,685,556.03 2,303,142.73 19 127,808.343 12,433,245 7895 12 447 Sales for Resale. . .. H 8 MR.% i n ,110 47 102 !
.. . .... 4 m A.449 QM .447 q 13 Total Sales of Electricity'. 8,003,624.53 2,440,459.15
> j
. ... 132,076,538 13,370,242 7904
- 104 14 OT11ER OPERATING REVENUES ,
IL 450 Farfeited Discounts.. . . . ....... None None None l 16 451 Miscellaneous Service Revenues. . . . . . . None . ! M 453 Sales of Water and Water Power.. . ... None None
- Includes revenues frorn application of fuel clauses3 $. 3 ,6,y,,p,.,p,6,,,,,, i 18 454 Rent from Electric Property. . ....... 1,200.00 1,000.00 19 455 Interdepartmental Rents. . . . ....... None None 20 4 56 Other Electric Revenues. . . . . . . . . . . . . 5.44 ( 396.16)
Total KWH to which applied. . .U.6.J,7,L,7,],3,,,,,,,,,,,,, i{ E 21 ' g 23 g 24 Total Other Operating Revenues. .... 1,205.44 h 25 606.84 L 26 Total Electric Operating Revenues.. . 8,004,829.97 2,441,065.99 Io Om
38 c.nnei ,.o ,w...T.9.9. 9!..I.W2.7 9H.k.G.I.T..#!.P..NU.K.EP.eATERT...................... vee, .no 3o oec: moe, al. id.Q SALES OF ELECTRICITY TO ULTDIATE CONSUMERS Report by account. the K.W.IL sold, the amount derived and t:ie number of customers under each filed schedule or contract. Contract sales and unbilled sales may be reported separately in total.
# *,a8e g,', ,_,
Numbe, of Customers (Pe, Cills Render.d) pe,K W.H. (cents) KW.H. Revenue (0.0000) July 31. Decembe, 31 Line Account Schedule (a) y _( b) (c) (d) (e) (Q No. No. 1 440 "A" Rate Domestic 40,170,799 2,532,254.68 6.3037 6338 6331 2 440 "B" Rate S5a$ional 121',327 9,354.50 7.7102 65 52 3 442 "C" Rate C6ituitercial 4,875,7,01 390,054.'63 7.9999 589 646 4 442" "D" Rate Power 58,661,668 3,261,583.38 5.5599 173 172 5 440 "F" Rate All}Elec. 12,763,618 671,587.03 5.2617 531 550 6 442 "G" Rate C5m.zHea't, 145,826 7,853.48 5.3855 3 3 Street Ligtitliig 4.9370
~
7 444 '1,198,033 - 59,146.76 4 4 8 444 Municipal Sales 9,430,362 518,962.83 5.5031 71 68 8.7206 125 133 9 449 Yard Lightinip 440,709 38,432.32 10 449 Unbilled Fu'el Chg. - 196,326.42 - - - Il 12 , 13 14 15 16 , 17 18 19
)
20 21 22 23 24 , 25 . 26 27 28 29 l 20 l 31 1 32 . l 33 l l 34
~
l 35 . 1 36 l 37 38 39 40 41 h 42 43 l 44 9)' l 45 48 49 TOTAL SALES TO ULTIMATE 127,808,043 7,685,556.03 6.0134 7899 7959 CONSU5tERS (Page 37 line 11)
TC',":: T (' r, ~. C:2 .'N-.. a."E'TRW8 annua , e go,i e r . . . . . . . . . . . . . . . . . .'. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Y u r no ra nec ELECTRIC OPEltATION ANI) AfAINTENANCE EXPENSES
)) 1. Enter in the space provided the operatie i and maintenance expenses for the year.
- 2. If the increases and decreases are not derived from previously reported figures explain in footnote.
(G' increase or O ****}I" Account Arnount for Year Preceding Year Line No. h) (b) (c) 1 POWER PRODUCTION EXPENSES $ $ 2 STEAM POWER GE;. ERAT 10N 3 Operation: 4 500 Operation supervision and engineering. . . . . . . . . . . . . . . 5 501 Fuel . . . . . . . . . . ... ..... . .. . .. G 502 Steam expenses. . . . . . . . . . . ..... . . .. . . . .. 7 503 Steam from other sources. .... .. ... . .......... .. 8 504 Steam transferred - Cr.. ........ ...... . ..... . .... 9 503 Electric expenses. . . . . . . . . . . . . . . . . . . . . . . . . ... . .. 10 506 h!!scellaneous steam power expenses. . . . . . . . . ............ 11 507 Rents . . . . . . . . . . . . . . . . . . . . . ... ... ...... ...... 12 Total operati?n. . . . . . . . . . . . . . . .......... ... ... (EUWL ;BUNa 13 Maintenance: 14 510 Maintenance supervision and engineering. . .. .. .. . . .. 15 511 Maintenance of structures. . . . . ....... ....... .... IG 512 M aintenance of . aller plant. . . . . . . . . .... . . . . . . . . . . . . . . ._ 17 513 Maintenance of electric plant. . ..... .... .. . ..... .. 514 Maintenance of miscellaneous ste'am plant. . . . . .. .
) 18 19 20 Total maintenance. . . . . .
Total power production expenses -steam power. . .
?"
. !N0tG l UOth:-
! wi--
21 NUCLEAR POWER GENERATION ' O 22 Operation: 23 517 Operation supervision and engineering.. . . . . . . . . . . , . . . . . 24 518 Fuel....... .. .... ... ...... . ...... . . .. ..... 25 519 Coolents and water. . . . . . .... .. .. 2G 520 Steam expenses. . . . . . . .. . 27 521 Steam from other sources. . .. . . .. ... .. . . 28 522 Steam transferred - Cr.. . . . . . . . ... .. . .. 29 523 Electric expenses. . . . . .... .. . .. . . .. . 30 524 Miscellaneous nuclear power expenses. . .. . .. . . 31 525 Rents. . . . . ... . . .... . . ... .... . 32 Total operation . . . . . . . . . . . . . . . . . . . . .... .. LWh * * !FO!!E 33 Maintenance: l I 34 528 Maintenance supervision and engineering.... . .... ... 35 529 Maintenance of structures. . . . . . . ..... .... . .. 36 530 Maintenance of reactor plant equipment. . . . . . . .... . 37 531 Maintenance of electric plant. .. ... . . . . f 38 532 Maintenance of miscellaneous nuclear plant. .. 39 Total maintenance. . . . ... .... ... . . ., , U0t2 @Vbe 40 Total power production expenses. nuclear power. . ..... . w irth 41 IlYDRAULIC POWER GENERATION 42 Operation: 43 535 Operation surcrvision und engineering. ... ........... .
- 44 536 Water for power. . . . . . . . . . .. .. . . .
t ! 45 537 Ilydraulic expenws. .. . . . . .. . . ... .. ! 46 533 Electric expenses. . . . . . .. . ...... .......... ...... l V 47 539 Miscellaneous hydraulic power generation expenses. . . . . . . . . . I l 48 540 Rents. . ........... . .... .. ... .. . ....... 49 Total operation . . . . . . . iVolm mud _ l
w Annual ,* poet s f. . . .T. .O. .W. ....C..*! !.'f. r. 3. .'.'. .M. . . .r. . l 1? .D . .P. 07.;.'J.. . . .D. .E. PJ..H. .T. .!J. I.:N. .T. . . . . . . . .. ... .. . . ... . Yea r 4,,,o o,c 3,3,, 3, .19@ Elf.GTit!C Ol'E!!ATION AND MAINTENANCE EXPENSES-Cmtinued Increase or une Acc unt Arnount for year (Uyc' din' '[a'" No. (a) (b) p (c)
]
.,/
I IlYDRAULIC POWER GENERATION-Continued $ $ 2 Alaintenance: l 3 541 Maintenance supervision and engineering. . 4 542 Maintenance of structures. . . ... . ,. .. 5 543 Maintenance of reservoirs dams and waterways. G 544 Maintenance of electric plant. . 7 545 Maintenance of miscellaneous hydraulic plant. 8 Total maintenanw. . . . . . . . . . . ... .. . None None 9 Total power production expenses - hydraulic power. . .. None None 10 OTIIER POWER GENERATION 11 Operation: 12 546 Operation supervision and engineering. . . . . ..... ..... 11,694.56 3,179.00 13 547 Fuel . . . . . . . . . . . . . . . . . . .. . . 1,037,179.28 195,240.87 14 543 Generation expenses. . .. . . . .. 136,846.96 2,886.36 15 549 Miscellaneous other power generation expenses. . . . ... ... 20,407.46 (1,834.62) IG 550 Rents. . . . . .. None None 17 Total operation . . . . .. . 1.206.128.26 199.471.61 18 Maintenance: 19 551 Maintenance supervision and engineering. . 8,355.58 3,253.37 20 550 Maintenance of structures. . . .. .. 2,258.15 (13,476.75) ' 21 553 Maintenance of generating and electric plant. . .. . . 62,005.58 (4,724.52) 22 554 Maintenance of miscellaneous other power generation plant... 1,296.29 (2,470.78) 23 Total maintenance. . . ... . ... . /J,913.bu L1/,41u.buJ 24 Total power prolfuction expenses - other powe,r. . . ... .. 1,280.043.86 182.052.93 25 OTIIER POWER SUPPLY EXPENSES, 2G 555 Purchased power. 4,716,131.73 1,865,995.57 27 55G System control and load dispatching. 10,636.72 1,232.36 28 557 Other expenses. . . .. .. . .. . 43,335.12 25,642.83 29 Total other power s pply expenses. . 4,//u,AuJ.3/ 1, c v 2, u Its . h 30 Total power production expenses. 6,050,147.43 2.074,923.69 31 TRANSMISSION EXPENSES , 32 Operation: 33 5G0 Operation supervision and engineering. . . . . . . None None 34 SGI Load dispatching. . . . . None None 35 5G2 Station expenses. . . . . . .. ... 688.40 188.03 3G 563 Overhead line expenses. . . . . .. None None 37 564 Underground line expenses. . . .. . . . .. None None 38 SGS Transmission of electricity by othcrs. . . . 189,656.94 10,109.55 l 39 SGG Miscellaneous transmibion expenses. . None None j 40 SG7 Rents. . . .. . . . None None 3 41 Total operation. 190,3A5.34 10,297.58 )
~
42 Maintenance: 43 SGS Maintetance supervision and engineering. . None Nor a 44 SG9 Maintenance of structures. . 1,910.35 1,205.45 45 570 Maintenance of station equipment. . 550.08 550.08 4G 571 Maintenance of overhead lines. . None (32.72' 47 572. Maintenance of underground lines. . . .. .... None None 48 573 Maintt-nance of m iscellaneous transmission plant. . ... None None 49 Total maintenance. . . . .... . ..... ... ... ... . . 2,460.43 .1,722.81 M Total t ransmission expenses. .. . 192,805.77 12,020.39~ 1 i
anno: ,#n se...T.9.9!. 9.f..!.!V2.3.W...W.9.!I.T..MA..G.F.e.l.PR.4.Gi4MT.. . . ...vear cnooo occ:m80, ai. idi ELECTRIC OPERATION AND MAINTENANCE EXPENSES-C2ntinutd increase or Account Arnount for Year I C * * " ' g, p
',, ^) -
No. (a) (b) , (c)
- 1 DISTRIBUTION EXPENSES $ $
2 Operation: m3 580 Operation supervision and engineering. . . . 11,125.58 878.27 4 581 Load dispatching. . . .. . . . . . . . None None 5 582 Station expenses. .......... ....c......... .... .. .. 78.00 , " 04) 6 533 Overhead line expenses. . . .. . .. ........ . .. 492.30 (e3.2 ) 7 584 Underground line expenses. .. . None None 8 585 Street lighting and signal system expenses. . 4,864.47 406.62 9 SSG Meter expenses. 11,455.57 (107.76) 10 587 Customer installations expenses. . . 8,124.66 1,853.36 11 5SS Miscellaneous distribution expenses. . . . . 14,932.57 11,725.21 12 SS9 Renu. .. None None 13 Total operation. .. . . . . . . 51.073.15 14.969_aa 14 Maintennnee: 15 590 Maintenance supervision and engineering. . . . . . . . . . . . . . . .. . 11,125.58 878.27 16 591 Maintenance of structures. . . . .......... .. . .. .. None None 17 592 Maintenance of station equipment. . . . . None None 18 593 51aintenance of overhead lines. . . . . . . . . . . .. . 86,860.22 (7,062.30) 19 594 Maintenance of underground lines. . . . 2,842.75 39.22 20 595 Maintenance of line transformers. . . . 2,871.72 3,796.43 21 596 Maintenance of street lighting and signalsystems. . . . . . . . .. 7,557.23 (1,743.12). 22 597 Maintenance of meters. . 1,859.50 91.11 23 598 Maintenance of miscellaneous distribution p? ant. None None 24 Total maintenance. . .. ... . 114,111.00 (4,000.39) 25 Total distribution expenses. 164_140_19 in_960_n;
~
2G CUSTOMER ACCOUNTS EXPENSES 27 Operation: 28 901 Supervision. . .. . .. 4,859.91 683.91 29 902 Meter reading expenses. . 22,360.77 1,524.15 30 903 Customer records hnd co!!ection expenses. 51,847.39 5,446.78 31 904 Uncolicctible accounts. 17,654.47 5,876.72 32 905 Miscellaneous customer accounts expenses. . None None 33 Total customer accounts expenses. . 96,/zz.b4 IJ,541.bb 34 SALES EXPENSES 35 Operation: 3G 911 Supervision. . None None 37 Q12 Demonstrating and selling expenses. . . . None None 38 913 Advertising expenses. . .. .. .. . 45.00 35.00 39 91C Miscellaneous sales expenses. . .. . . None None 40 . Total sales expenses. . ... . . .. . 45 00__ 7;_nn 41 ADMINISTRATIVE AND GENERAL EXPENSES 42 Operation: 43 920 Administrative 'and general salarie. 89,975.89 10,333.63 44 921 Office supplies and expenses. . . 5,074.61 (502.60) 45 922 Administrative expenses transferred - Cr.. None None 4G 923 Outside services employed. 5,426.86 (7,966.73) 47 924 Property insurance. . . . 11,414.00 2,149.81 48 925 Injuries and damages. 45,116.85 5,055.72 49 92G Employee pensions and benefits. . 347,369.36 14,312.51 m 59 923 Itenu11 tory coramiwion expen.u. . .. 10.558.90 6,128.74 [ ) 51 W5#iftMMEEEFrXXMX. 933, ,Tr an spop ta,t ion , Exp,.. 22,004.65 4,069.82 [' 52 53 930 Miscellaneous general expenses. . 931 Ikats . None 5,508.59 None 664.87 M Tatai operat a.n . 542.449.71 3 4 . 24 LR ,_
ELECTRIC OPERATION AND SIAINTENANCE EXPENSES-C ntinned increa n or IDecr r an, Account Amount for Y2 ar p, g n, rem. (a) (b) (c) . 1 AD5flNISTRATIVE AND GENERAL EXPENSES-Cont. $ $ 2 Afnintenance: 932 A!aintenance of general plant. 13,844.90 ( 13,472.68)
,3 .. .. . ........ ....
Total administrative and general expenses. . . . . .. ... 556,294.61 20,773.09 4 Total Electric Operation and 51aintenance Expenses. . . . 7,060,205.50 2,131,552.78
.. 5 SUAf ALARY OF ELECTRIC OPERATION AND SfAINTENANCE EXPENSES Fu nctional Classification Operation Maintenance Total Line No. (a) (b) (c) (d)
Power Productica Expenses 3 3' $ {G7 Electr.1 Generation: 8 Steam power. . . . . .. .. 9 Nuclear power. . 10 flydraulic power. . 1,206,128.26 73,915.60 1,280,043.86 11 Other power. .. Other power supply expenses. 4.770.103.51 None 4.770.101 5]_ 12 6,050,147.43 5,976,231.83 73,915.60 13 Total power production expenses.. 190,345.34 2,460.43 192,805.77 . 14 : Transmission Expenses. . . I 51,073.15 113,117.00 164,190.15 i 15 Distribution Expenses. , . 96,722.54 None 96,722.54 IG Customer Accounts Expensc,. 45.00 None 45.00 17 Sales Expenses. . . 556.294. R. 542__449 71 13.844.90-1 Administrative and General Expenses. ID To:a! Electric Operation and 6,856,867.57g 203,337.93 7,060,205.50 10 Maintenance Expenses. l l Ratio of opent'..g expenses to operating revenues (carry out decimal two p! aces, e.g.: 0.00%) % 21 Con.p.:e Ley dividine Revenues (Acet. 400) into the sum of Operation and Maintenance Espenses (Page 42. Lae Ad), Depreciation (Acct. 40;I) and Aniortisation (Acet. 407)... .. 22 Total salaiies and + ages of electric department for year, including amounts charged to oper- 595,965.77 ating expenses, construct. ion and other accounts. . . .. . $ li3 Total number of employees of electric department at end (f year including administrative. 33 operating. maintenance, construction and other employees (including part time employees) t t I l l t
/n r\
r
~r i m )
'm '
Q)<& (VG - v
?
TAXES CIIAl(GED DURING YEAR
- 1. This schedule is intended to give the secount dis- 3. The aggregate of each kind of tax should be listed {
tribution of total taxes charged to operations and other under the appropriate heading of " Federal," " State," andornumber of the appropriate balance sheet plant as mt 3 final accounts during the year. subaceount. I
' 2. Do not include gasoline and other sales taxes which " Local" in such manner that the tots! tax for each State 5. For any tax which it was necessary to opt ilon 2 have been charged to accounts to which the material and for all subdivisions can readily be ascertained. to more than one utility department or account, . . ate ,1 on which the tax was levied was charged. If the actual 4. The accounts to which the taxes charged were dis- in a footnote the basis of apportioning such tax. :*
- 6. Do not include in this schedule entries with respect er estimated amounts of such taxes are known, they tributed shouhl be shown in columns (c) to (h). Show to deferred income tax m, or taxes collected :
should estimatedbe or shown as a footnote and designated whether both the utility department and number of account roll deductions or otherwiso pending transmitt actual amounts. : charged. For taxes charged to utility plant show the taxes to the taxing authority. i Total Taxes Distribution of Taxes Charged (omit cents) i Charged (Show utility department where applicable and account charged) Ouring Year Dectric j' Line Gas
- Kind of Tax (omit cents) *
(Acct. 408.Suset (Acct. 408. 409) No. (a) (b) (c) (d) (e) (f) (g) 5' (h) (I) (j)
- 1 Real Estate Taxes 2345.40 i 2
2345.40 3 i 4 i t 5 i 6 l2 7 i' 8 i 4 9 i 10 i. 11 12 i 13 i 14 i 15 i 16 : 17 i* 18 19 20 If 21 . 22 $ 23 , $ 24 - 5 25 $ 26 2 27 N 2345.40 28 TotAts 2345.40 h O
a .. Year e,,,,d,Dec:mber 31.125$0/ A nnuil a s port a f. . . . . . . .. . . . . . . . . . . . ..% . .. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OTIIER UTILITY OPERATING INCOME (Acc:unt 414) Report below the particulars called for in each column. , 1 Amount , Gain or Amount of Amount of of Operating l (Loss) from r perty Line Investment Revenue b penses l Operation N o. (a) (b) (c) (d) (e) 1 < 2 , 3 4 5 6 7 8 9 - 10 11 12 13 14 15 16 NONI 17 18 19 20 21 , 22 25 26 27 28 29 30 31 32 33 [ 34 35 37 l 38 39 . 40 41 42 13 u 45 l 46 1 \ i 47 TOTALS e ( 51 , 1 l l L
Annu11 rt port (f..... . ... . . .......... . . . .......... ...... ...... ...... ..... ... . .. .... ..Vett en@e@ @scsm@sr @B. 8@dgGT t' INCOME FROM MERCIIANDISINC. JOB ING. AND CONTRACT WORK (Account 415) R2 port by utility diptrtmInts the nyinues. ccets. expenses. and nit ine:me from mirehandising, jobbing, and contrzet work during year.
))
m' - Electric Cas Other U hhty Line s . sm Department Department Department Total No. (6) (b) (c) (d) (e) 1 Revenues: 3 3 $ $ 2 Merchandise sales. less discounta. 3 . allowances and returns. .. . - 4 Contract work. 5 Commissions. 6 Other (list according to major classes). 7 4 8 9 10 , Total Revenues. __ 11 . 12 13 Costs and Expenses: 14 Cost of sales (list according to major 25 classes of cost). .. 16 17 18 19 20 NONE
*1
% 23 24 25 26 Sales expenses. .
27 Customer accounts expenses. 28 Administrative and general expenses. 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 [ ' 49 ~~~~
- k. 50 TOTAL COSTS AND EXPENSES 51 Net Profit (or Loss)
t- p ; r, ._. .Tcr m m_m u -
..Yar cnd:4 December 31,19g;... )
Annust riport of.. .. . . .. .... . . . . . . . . ... . .. . .. , SALES FOR RESALE (Account 447)
- 1. Report sales during year to other electric utilities and and place an "x"in column (c)if sale involves export across to cities or other public authorities for distributica to a state line.
ultimate consumers. 3. Report separately firm, dump, and other power sold to
- 2. Provide subheadings and classify sales as to (1) Associ. the same utility. Describe the nature of any sales clarsified ated Utilities,(2) Nonassociated Utilities, (3) Municipalities, as Other Power, colamn (b).
(4) R.E.A. Cooperatives, and (5) Other Public Authorities. 4. If delivery is made at a substation indicate ownership For each sale designate statistical classification :n column (b), in column (e), thus: 'espondent owned or leased. RS: thus: firm power, FP: dump or surplus power, DP; other, G, customer owned or leased, CS. c = Kw cr Kva of Demand
-y !$ $ (Srecify Which) k5 Mb e Point of Delivery h Average Sales to j3 E Monthly Annual 5 _E y% $ Contract Maximum Maximum Line o w Demand Demand Demand No. (a) (b) (c) (d) (e) (f) (g) (h) 1 3anvers Elect. Dept G Marlboro-Hudson 1000 NA NA 2 5terling Mun. Elec. G Town Line 1000 NA NA 3 Templeton Mun. Ie3 t . G " "
1000 NA NA 4 Joylston Mun. Ist. " " G 150 NA NA 5:folden Mun. Lgt. G 900 NA NA 6 Groton Elec. Ie3 t. G 250 NA NA 7 11ttleton Elec. Ie3 t . . G 1000 NA NA 8 Mansfield Elec. Dept. G " " 3000 NA t NA 9 MM"EC G 4680 NA NA 10 11 12 13 t 16 9 17 . 18 19 20 21 2V 23 24 j 25 26 27 28 . 29 30 ' 31 , 32 J3 34 35 36 37 38 41 42 e
Annuit erport ef.....
.Y Y.'f.Td.hd.E.tif..iS.E.3N.P 9.'.'...".f:f5h.Vii.V.T... .................Yast a ndid Dscstnbir 31.140 l
SALES FOR RESALE (Account 447)-Continued
- 5. If a fixed number of kilowatts of mnimum de: .and 6. The number of kilowatt-hours sold should be the .
} is specified in the power contract as a basis of billings to the customer this number should be shown in column (f).
quantitics shown by the bills rendered to the purchasers. The number of kilowatts of maximum demand to be shown 7. Explain any amounts entered in coLmn (n) such as fuel r other adj'ustments. (d in column (g) and (h) should be actual based on monthly readings and should be furnished whether or not used in the
- 8. If a contract covers several points of delivery and determination of demand charges. Show in column (i) type small amounts of electric energy are delivered at each point,
' of demand reading (instantaneous,15, 30, or 60 minutes such sales may be grouped.
integrated). l I Voltage Revenue (Omit Cents) Type of at Revenue Demand Which per kwh Kilowatt. Dema nd Other Reading Delivered hours Charges (Cents) - Energy Charges Total (0.0000) Line (1) (D (k) (1) (m) (a) (o) (p) No. 60 Min. 115 KV 298,300 5,280 20,933 26,213 B.7875 60 Min, 1 115 KV 298,300 5,280 20,933 26,213 3.7875 60 Min. 115 KV 2 298,300 5,280_ 20,933 26,213 3.7875 60 Min. 115 KV 154,269 3 1,584 7,763 9,347 5.0589 60 Min. 115 KV 756,495 7(128 31,422 38,550 5.0959 4 60 Min. 115 KV 117,026 1,320 7,119 8,439 7.2112 5 60 Min. 115 KV 1,121,410 6 11,088 52,000 63,088 5.6258 60 Min. 115 KV 701,200 .I 29,040 44,283 73,323 10.4568 g 60 Min. 115 KV 523,195 12,933 33,749 46,682 8.9225 9 10 11 12 D 23 p 14 15 16 17~ 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
- 33 i . 34 35 36 37 33 39 tv) 40 41 T m LS 4,268,495 78,933 239,135 i
318,068- 7.4515 42 i
TO*.'N: CF UUDC J:. .:. A nnuil rip:rt of. . . . . . . . . . . . . . .. . .... J .4..:fD POViEP.
..... DEPARRIENT........YEr
... ... .. ...... ...... ..gndid
. . . Dicimbir 31.19bb PUltCIIASED POWElt (Account 555)
(except interchange power) .
- 1. Report power purchased for resale during the year. Authorities. For esch purchase designate statistical classi-Exclude from this schedule and report on page 56 particulars fication in column (b). thus: f.rm power, FP; dump or concerning interchange power transactions during the year. surplus power, DP: other,0, and place an "x" in column (c)
- 2. Provide subhradings and classify purchases as to if purchase involves import across a state line.
(1) Associated Utilities. (2) Nonassociated Utilities. (3) 3. Iteport ceparately firm, dump, and other power pur-Associated Nonutilities. (4) Other Nonutilities, (5) Muni- char-d from the same company. Describe the nature of any cipalities, (G) It.E.A. Cooperatives, and (7) Other Public purebases classified as Other Power, column (b). _C E. e Kw or Kva of Demand a3 {7 R (Specify which) 52 <3 a Avera ge Purchased From h **: E% Point of Recefpt S Monthly
""
- Annual Line ~~$U Contract Ma ximum Ma ximum No. Demand Demand Demand (a) (b) (c) (d) (e) (g)
(Q (h) 1 NEPCO 0 X Marlboro-lludson Town 18,000 NA NA 2 'B . E. - Pilgrim I O Line 2,500 NA NA 3 Vermont Yankee 0 X " 5!17 NA NA 4 Maine Yankee 0 X " 1,234 NA NA 5 Wyman - Yarmouth 0 X " 2,090 NA NA 6 VELCO O X " 2,000 NA NA 0 " 7 l NBG & L Canal 2 4,000 NA NA B 9 10 11 12 POWER USED AT POV ER PLANT AAD . 15 16
); 17 .
18 19 20 21 22 23 24 25 2G 27 28 29 30 31 32 33 34 r 35 g"?T 3G 37 40 41 e 42
Annual,eport of.. . . . ~ . " '. .. . .T. .. Y . . . . . . . ........ Year endid Decimt er 31.19'C PURCIIASED POWER (Account 555)-Continued (except interchange pcVer) ,
- 4. If receipt of power is at a subs'.ation indicate ownership should be furnished whether or not used in the determination in column (e). thus: respondent owned or leased, ItS; seller of demand charges. Show in cohimn (i) type of demand owned or leased, SS. reading (instantaneous,15,30, or 60 minutes integrated).
, 5. If a fixed number of kilowatts of maximum ,deman,d 6. Th is specified in the power contract as a basis of bilhng. this quantgt. e wn les sh number of kilowatt by the power bilis. hours purchased sho number should be shown in column (f). The number of 7. Explain any amount entered in column (n) such as fuel kilowatts of maximum demand to be shown in columns (g) and (h) should be actual based on monthly readings and or other adjustments.
I Cost of Energy (Ornit Cen.ss Cost Type of Voltage per Kelowatt. Demand at which hours KWH Eners) Other - (Cents) Reading Delivered Charges Total Charges Charges (0.0000) Line (f) 'm) (n) (c) (p) No. (i) (D (k) NA 115KV 74,758,000 904,634 2,141,616 3,106,250 1.1551 NA ll5KV 11,359,882 327,600 45,660 373,260 3.2858 2 NA 115KV 3,312,885 66,329 2U,818 87,147 2.6305 3 NA 115KV 6,524,777 83,859 41,413 125,272 L.9199 4 NA ll5KV 3,603,996 75,369 161,366 236,735 5.5607 5 NA ll5KV 7,744,700 132,005 48,937 180,942 2.3363 6 NA ll5KV 3,935,235 26,641 180,879 207,520 5.2734 7 8
!)
10 CHARGED TO (54S) (329,958) (12,740) 11 12 13 1 16 17 I? 19' 20 21 22
! , 23
{ 24 j 25 26 27 28 29 30 31 , 32 i 33 l l
' 34 35 j 36 37
' 38 i ' 39 40
' ; 41
~
ToTAu 110,909,517 1,676,437,2,640,689 4,304,386 3.8809 42
V INTERCl!ANGE POWER (included in Account 555) j? E
- 1. Report below the kilowatt-hours received and shall be furnished in Part B, Details of Settlement for coordination, or other such arrangement, submit a :
dehvered during the year and the net charge or credit Interchange Power. If settlement for any i,ransaction copy of the annual summary of transactions and Lill. ; under interchange power agreements. also includes credit or debit amounts otner than for ings among the parties to the agreement. If the o
- 2. Provide subheadings and classify interchanges increment generstion ex penses, show such other amount of settlement reported in this schedule for any ;
) as to (1) Associated Utilities,(2) Nonassociated Utili- component amount <. separately, in addition to debit transaction does not represent all of the charges anii .- l l ties, (3) Associated Nonutilities. (4) Other N o n- or credit for increment generation expenses, and give credits covered by the agreement, turnish in a footnote . I utilities. (5) Municipalities, (G) R.E.A. Cooperatives, a brief explanation of the factors and principles under a description of the other debits and credits and state :a i and (7) Other Publi:: Authorities. For each inter- which such other component amounts were deter- the amounts and accounts in which such other :Q l chnge across a state line place an "x" in column (b). mined. If such settlement represents the net of debits amounts are included for the year. !$ l
- 3. Particulars of settlements for interchange power and credits under an interconnection, power paoling, . I A. Summary of Interchange According to Companies and Points of Interchange ,
*4 l ee ;
.=: ' '
[, g [v E Kilowatt-hours ;] f, ::I Ey{ i9 Name of Company bE" Point of interchange $g5 Arnount of I Line 5k 5 Received Delivered Net Diffe,ence * " No. (a) (b) (c) (d) (e) (g) (f) (h) ,-
- ]
- 3 1 .NEPEX X Marlboro-liudson Line ll5KV 17,311,500 8,618,600 8,692,900 413,238.32 5h 2 USED AS STATION POWER WD CIMRGED TO (543) (31,562) y w; - . , . .
(31,562) 1,492.24 53 4 5
!N
'N
- - :o 6
. c3 1 7 :;u tn 8 : s
- :s 9 *Hw 10 3g 11 l jy 12 N Ats 17,279,938 8,618,600 8,661,338 411,746.08 $
l R. Details d Settlement for Interchange Power i Line Name of Company b pla nation f.mou nt No. p) (i) (b) l 13 NEPEX Energy Received by H.L. & P. - Economy 14 15
- Scheduled Outage 480,791.07 324,207.62 1
[
- Unscheduled Outage 16 17 NEPEX Expenses 8,259.91 7,421.10
[ Energy Delivered By H. L. & P. 3 18 NEPEX Savings (337,635.00) { 19 ( 69,806.38) *S 20 .
,tc 21 N AL 413,238.32 O e O O
O A aval report af... . . . TO#N
. . . . . . . . .0
. . '..lP
. . . . . . UTz
. . . . . . rg
. . . .quT
. Ah'.D DEP ARTMENT.P. *".P . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
EI.ECTRIC ENERGY ACCOUNY Report t aw the information cal!.d for eormrnlag the disposities of eleetria energy generat s. purchneed tad ir.terchanged during the year. item Kiloyrett. hours Line O) - No. 1 SOURCES OF ENERGY (a) (b) 2 Generation (excluding station use): 3 Steam. . . .. . .. .. . .. .. .. .. .. . ... ..... 4 Nuclear. ... .. . .. . . . . . . .. .. .. .. .
- 5 Ilydro. . . . . . . ... . . . ... . .... . . .. . ..... , . . . . . . . , . .... _.m.
6 Other.' . . .' . ....... ..... . , .. . . .. 27'562,320 7 Total generation. .- . . . . .. . .... 27,562,320 8 Purchases. . . . .. . .... 110,909,517 17,279,938 ******* 9 In (grom).. . 8,618,600 ******* 10 Interchanges. . . . Out (grons). . 11 Net (kwb). . .. 8,661,338 12 Received . 13 Transmission for/by others (wheeling). < Delivered. ,_ 14 , Net (kwh). . . . . ..... .. 15 TOTAL., . .. .. . .. . .. 147,133,175 16 DISPOSITION OF ENERGY 17 Sales to uhirnate consemers (including interdepartmental sales). . . .. . 127,808,043 18 Sales for resale. . . . .. . . . .. 4,268,495 19 Energy furnished without charge. .. . .. . . 20 Energy used by the company (excluding station use): 21 Electric department only. ... . 231,240 22 Energy losaes: 23 Transmission and conversion losses. . . 4,989,080 24 Distribution losses. . 6,079,517 25 Unaccounted for loanes. . . . 1.756.800 [_ 26 Total energy loces. . . . ... . 14,825,397 k 27 Energy losses as percent of total on line 15. .% 28 TOTAL 147,133,175 MONTIILY PEAKS AND OUTPITI'
- 3. Raport hereunder the inferi ation onlled for. ' ming to simul. 3. State type of monthly peak reading Onetmatanoone 18. 30. or 60 taneous r ahe estabhabed monthly On kdowatts) monthly output On minutes integrated.)
kdowntdours) for the combined sourt=s of ewtrie energy of respondaat- 4. M
- 2. Monthly peak col. (b) should be respondent's mazi,num kw load as and pu,onthly chaeme plus output or adeusshoidd be the sum not interchampe and of plus,espondent's met sum or minue net trane.
measured by the eura of its coincidental not generation and purehas.e plus mismen or wheehag. Total for the year enould agree with has le above. or minua not interchange, minus temporary delaterW act interchange) 8. U the ree adeel has two or more power systems not byeleell of emergency power to another system. Afonthly includmg such connected, the information called for below should be i for eneE eraergency delaveries shoukt be shown in a footnote wi a brtet emplanat.oa system. me to the nature os the emergency. System Monthly Peak Monthly Output Day of (kwh) Line Month Kilowetts Day of week Month Hour Type of Pesding (See instr. 4) No. (e) , (b) (c) (d) (e) (f) (a) N January.. 25,600
,25,200 Thursday Friday 31 11 AM 9 AM 60 Min.
60 Min. 13,796,251 13,484,203 30 February. . . . . 1 31 March . . . . . . . 25,000 Monday 3 11 AM ,60 Min. 12,831,378 32 April. .. ... 21,200 Tuesday 29 10 AM 60 Min. 11,464,183 I 33 M ay. . . . . . . 21,600 Monday 12 11 AM 60 Min'. 10,648,614 34 June. . ... . 23,200 Wednesday 25 3 PM 60 Min. 10,388,020 35 July. .... .. 25,500 Monday 21 4 PM 60 Min. 11,655,959 36 August. . . . . . 25,100 Wednesday 6 3 PM 60 Min. 12,370,298 37 September.. . . 26,300 Tuesday. 2 2 PM 60 Min. 11,342,931 5 38 October. . . . . . 22,600 Tuesday 28 10 AM 60 Min. 12,097,208 , ) 39 November. . 23,900 Monday 24 9 AM 60 Min. 12,172,594 40 December. . 27,900 Monday 22 9 AM 60 Min. 14,881,536 41 - Tout 147,133,175
58 o Annu 8 report (f... TC7C
... "."E . . . .'.o9 P" T1 DI" APT"DJT ou o , o n .non o
. .. Year onded Deccmbcr 31,19.h GENERATING STATION STATISTICS (Large Stations)
(Except Nuclear, See Instruction 10)
- 4. If peak darnand for no minutee is not ava.lable. alve that whichis
- 1. lasse stadone for th purp..ma s.f this schedule are etsom and hydro avadable. opaeulying p,riod.
, ,g g;ne, og g,too K,* or more J install,=1 repanty and other statanne of S(y) Kw* or amore of installed capacity (carne plate racess). (*10.f'so K " 5. ff a group of emptorcas attende more than one a*nerating station, and 2.600 Kw. ra.pocuvely d annual elects.c ope. t.ns revaues of re- report oa tine in the appronunate avermae autaber of employees an..anable to ch ,tabon.
pondent are 82SM9MO or mored
- 2. If any p'4at is leasad, opasstel und*r a Idene* imm the Federal 6. Il gas la used and purehased so a therm basis. the ILt.u. eentent of Power Commienson, or et* rated as a Joans facilv, inuate suah facte by the ans should I,e given and the quantity of fuel moneumed converta.1 to M ou. f t. G the use of setermis and footnotes.
. 3. Spandfy if totalplaat especity is reported in ha lastead of kilown'tta .
- 7. Quantities of fuel soneumed and the average oost per unit of fuel j' consumed rhoekt be eonatetent with ehargse to est=ase aceounte Sol and se called for on line 6.
Plent Plant Pla nt tine item (c) (d) (a) No. Cher ry h(b)L '; r n . H . T S. P _ po tk i4 Int. Comb. Int. Comb. 1 Kind of plant (steam, hydro, int. comb., gas turbine) 2 Type of plant construction (conventional, outdoor boDer, full outdoor, etc.). . Conventional Conventional Year origina!!y constructed. .1897 1962 3 1972 1962 4 Year last unit was installed. . . 5 Totalinstalled capacity (maximum generator name
't? ,150
- 4000 plate ratings in kw).
13,500 3500 6 Net peak demand on plant kilowatta (60 min.). 8784 2016 7 Plant hours connected to load. 8 Net continuotis plant capability, kilowatts: (a) When not limited by condenser water. 15,200 4000 9 (b) When limited by condenwr water. 15,200 4000 10 11 Average number of employees. 24,153,264 3,409,056 12 Net generation, exclualve of station uw. 13 Coat of plant (omit cents): 5500 None m 14 Land and land rights. Structures and improvements. 330,740 None 15 Rewrvoirs, dams, and waterways. None None M 3,007,717 543,872 17 Equipment costa.. Roads, railroads, and bridges., " n rm None 18
!,957 543,872 19 Total cost. .. ... . .
Cost per kw of installed capacity. jo S136 20 21 Production expenne: Tota 1 Combined Plantu Operation supervision and engineering. . 11,694.56 l 22 114,174.30 23 Station labor. Fuel. 1,037,179.28 24 . Supplice and expensen, including water. 43,080.12 25 Malntenance. 73,915.60 26 . 27 Rents. None Steam from other cources. None 28 29 Steam transferred-Credit. None 30 Total production expenen. . . . 1,280,043.86 ~ 81 Expenses per net Kwh (5 places). ,04 644 18 82 Fuel: Kind ' #2 Diesel Natural Gas Unit: (Coal-tons of 2,000 lb.) (Oil-barrels of 42 42 Gal. M Cu. Ft. 33 gals.) (Gas-M cu. ft.) (Nuclee r, Indicate). 16,606 193,847 m 34 Quantity (units) of fuel consumed. . 35 Average heat content of fuel (B.t.u. per Ib. of coal, 140,000 BTU 910 BTU per gal. of oil, or per cu. ft. of gas).. 36 Average cost of fuel per unit del. f.o.b. plant. S 34.34G2 BDL S 3.32518 MCF 37 Average cost of fuel per unit consumed. S 23.6427 BUL S 3.32518 MCP S 3.65406 38 Average cost of fuel consumed per million B.t.u.. S 4.01857 89 Average cost of fuel consumed per kwh net gen.. .0376303 40 Average D t.u. per kwh net generation. 9,945 41 42
t.nnu:t r: port of.. . . . . . . . . . . . . . . .. ... h...orwLe. e.g
..yect (nd:d 02cambs,33, 320 -l GENEllATING STATION Fa'ATISTICS (tergi St: tion:)-Continuett (Exe:p. Nucler, See Irutruction 10)
S47 as shoea on line 24, oper tios with a convent oral tiensa nsjt, tha gas turbine thould t,e niclu led
"***L**-
- 3. The iterne under cost of plant and production empensas represents *'O10.L'I'f "the respo'n tent operates a nuclear power generating station accounts er combenauena of accounta prescribed by the Unaform System submit: fa) a brset esplanatory statement concerning account 4ag for the x
'i
) af Aces,unta, j'rneluct4on es naes. bowever, do not include 8** whased Pow er, byetem Control an load shapatcbang mad Other Es penses claaufied as "Other l'ower Supply Espenam.**
cost of power generated ancluding any attributaon of escens coats to rew arch specifying the accounhas meth"ods . .Y"", .. N Lh* b'Iuneet
"" m***f ath ,~' ,/ 9. If any plant la equipped with combinations of eteam, hydrs. s,aternal reepect to the various componenta of the fueIcost, and (c) such ali teout combusbon eng.no or gas turbine equipment, each abould be reported as a informahon as may be infornieuwe soncerning the tyt e of plant, hand of separate plant. Alemover, if a gas turbane unal functwas an a combaned fuel used, and other physacal and operatang charactensucs of the f -.at.
n Pla nt Pfar? Plant Plant Pla nt Pla nt tine (e) (f) (E) (h) (i) (1) f40. 1 2 3 4 5 6 7 8 9 10 11 12 11 18 15 16 l 19 20 21 22 23 24 25 2G 27 28 29 30 31 32 33 34 35 36 37 38 39 e .
\
4. 4, 42
"?.'M C T H". "[.T;
- I '* * * '.. * *.?....
D P. J.".;72. .D EPQTMQ'T ..Ystr <nd;d Dscsmb:r 31.19h.h Annuit riport of... . . . . . . . . . . ... . STEAM GENERATING STATIONS lessor, date and term of lease, and annual rent. For any
- 1. firport the information called for concerning gener-ating stations and equipment at end of year. generating station, other than a leased statien or portion
- 2. Exclude from this schedule, plant, the book cost.of thereof for which the respondent is not the vsle owner but -
which is included in Accouns 121, Nonutility Property, which the respondent operates or shares in the operation of, furnish a succinct staternent explaining the arrangement and
- 3. Designa a any generating station or portion thereof for which the responalent is not the sole owrier. If such giving particulars as to such matters as percent ownership property is leased from another company, give name of by respondent, name of exwner, basis of staaring output. _
t
' Boilers Rated Man.
Location of Station Number Kind of fuel Rated Rated Continuous Name of Station M lbs. Steem and Year and Method Pressure Steem Inste tted of Firing in Ibs. Temperature
- per Hour Une (g)
No. (a) (b) (C) (d) (e) (f) I 2 3 4 5 6 7 8 9 10 11 12 13 gQq APPLICA M 16 17 18 19 20 21 22 23 28 25 26 27 28 2') 30 31 32 33 34 i 3 '> 3G _ 37 1 Neste reference:
- Indicate reheat Loilers thusly. 1050/1000.
61
. ~ . . . . . . .~ . . ,
Annual esport of., p,s.. ..............................................: _.,.,,,-.., -.y-,
. . . . . . .'. . .; ". ' 7.T.g. . . . . . . . . . . . . . . . . . . . . . . . . . Year e nded Decem ber 31. I 4 0 STEAM CEN!'ItATING STATIONS-Continued expenses or revenues, and how expenses and/or revenues are 5. Designate any plant or equipment owned, not oper.
accounted for and accounts nifected. Specify if lessor, ated, and not leased to arother company. Jf such plant nr co-owner, or other party is an aw>ciated company. equipment was not operated w .hin the p,ast year explain
) 4. Designate any generating station or portt<m thereof
! cased to ano'her compai:y and give name of lessee, date and whether it has been retired it the books of account or what disposition of the plant or equipment and its book cost are ter.n of lease and annual rent and how determined. Specify contemplated, whether lessee is ait associated company.
Turbine Generators' -
- Name' Plate Rat;ng Steam in Kilowatts Hydrogen Station p,,,,,,, Capacity At At Pressureg Y Minimum Maximum Pswer Voltage Manimum Installed Typet T ottle p ,p, y
- Hydro 2en Hydrogen Factor Kw.t g Name Plate Pressure Pressure Min. M ax.
Ratingt! g* (h) (i) (i) (k) (1) (m)* (n) (o) (p) (q) (r) g,, 1 2 3 4 5 ' 6 7 8 9 10 11 12 13 l l 14 1
!;0T AEPLICALLE l t o.
3 i i 16 i 17 18 l . 19 20 21 22 23 24 25 26 27 23 29 i I 30 31
. 32 33 34 3a 36
.k TOTALS 37 Note references:
\
- Report cross-compoui.d turbir.e-generator units on two lines - !!.P. scetion and LP. section.
j tIndicate tandem-compound (T.C.): cross-compound (C.C.); all single casing (S.C.); topping unit (T). and noncondensing (N.C.). Show back presures.
' ! Designate air coated generators.
. tIIf other than 3 phase,60 cycle, indic ate other characteristic.
!!Should agree with column (m).
62
,.n.- *~-s- -
*-en Annus1 report of....
evpg;,3 gsq , ,
. . . . . . . .. . . . . .. ..Yttr ended Deccenter 31. IN.)
IIYDitOELECTitlC GENEftATING STATIONS
- 1. Ileport Or ir. formation cal!ed for concerning gen property is leased frorn another cornpany. give name'of crating statio: nd equipinem at end of year. Show lessor, date and term of lease. and rn ":.-l rent. For any auociated prime n. overs and ger. rators on the same line. generating station. other than a leased str. tion, or portion
- 2. Exclud frorn this schedule, plant the book cost of ~
thereof, for which the respondent is not the sole owner which is intf 'ded in Accuar.t 121, Nonatility Property. but which the respondent operates or shares in the oper-
- 3. Designate any generating station or portion thereof ation of, furnish a succinct staternent explaining the ar-for which the respondent is not the sole owner. Ifsqch rangement and giving particulars as to such matters as Y
Water Wheels Name of Station loc a tion Gross Static Narne of Stream Attended or Type of Year Head with tine Una ttended Unit
- Instaued Pond ruft N o. (a) (b) (c) (d) (e) (f) (g) 1 2
3 4 5 6 7 8 9 10 11
!?
13 16 17 UCT APPLIM'Z e 18 19 20 21 22 23 2t 25 1 26 27 l 28 , 29 3' I 30 31 32 33 I 31 35 , 36 '% 37 38 g 39 1
*J!orizontal or vertical. Also inaicate type of runner - Francis (F), fixed propeller (FP), automatically adju-tab!c propeller (Al'), Irnpulse (I).
=_ - _ . . .__. _ _ _
i t 63 1 - Annuti report of..T..O.'.3M..O.F.. HU..D..S. 0..". L. I.G.H.T. .' A..ND...P.0i'.'ER DEPARTMENT
. . .. .......................................... . .. Year ended December 31,1980 IlYDitOEI.ECTRIC GENEltATING STATIONS-Continued 4 T percent of owns rship by respnndent. name of co-owner. .'Jnify w*n. ?l r Ice is an aw.cialmi company.
) tsaw of sharir.g output. expenwg nr revenues an<l how exp?nses und/or revenuca are accounted for anc accounts
- 5. .lk.sig me any plant or ayuipment owned, not . cer.
. ated and not le;ned to another company. If such plant t
afIccted. Specify if lessor, co-owner, or other party is an or equipment was not operated within the >ast year explain associated company. . .
. whether it has been retired in the books of account or what -
- 4. Designate eny generating station or p.ortion thereof disposition of the plant or equipment and its book cost are
, leased to another company and give name of lessee, date contemplated.
and tertn of lease and annual rent and how determined.
+
Water Wheels - Continued Cenerators Total Installed Maximum tip. Name Plate Number Cencrating j Capacity of Fre. Rating of of Capacity in Kil.
! Unit at Year quency Unit in Units in owatts (name Design Head R.P.M. Design Head Installed Voltage Phase or d.c. Kilowatts Station plate ratings) Line
] (h) (i) (j) (k) (I) (m) (n) (o) (p) (g) tio. 1 2 3 4 I 5 .l C 7 8 9 10 11 12 13 14 w-
]3 IG No" APPT.~ 0ABLE 37
- i. _ _ _ . - -
18 { 19 20 i 21 l 22
- 23 l ; 24 i 25 l 2G a 27 28 1
- 29
- 30 8
, 31 32 33 34
; 35 36 37 1
i , i __ 3S TOT /LS 3'l N. 1 .
. . . . . . _ . _ - _ . . . ....._a I
.- , . ...~..---.-,r-. . - . - - _ . . - - _ . - . ~ . - _ _ - - . _ , . . - - _ ~ . - , . , , , , . . . _ - - - - . - - . - ,
U Annuis report af....T.0.m...!..O.F...H.U..D..S..O..N..L..I.G.i!T. AND PO?!EE DEPARTMENT. . . . . . . . . . . . . . . . . . . . COMHUSTION ENGINE AND OTilER CENERATING STATIONS-Continued (except nuclear r ations) ship by respondent, name cf co-owner. basis of sharing Si *cify whether lessee is an associated comparry. f'"3 V output, expenses, or revenues. and how expenses and/or re'.enues are accounted for and accounts affected. Specify if
. Designate any plant or equipment owned, not oper.
att ! and not leased to another company. If such plant lessor, co-owne . or other party is an associated company. or a luipment was rot operated within the past year. explain
- 4. Designate , y generating station or portion thereof who 'her it has beu. retired in the books of account or what
' leased to anothu company and give name of lessee, date disp sition of the plant or equiprnent and its boolc cost are and term of lease.and aunual rent and how determined. contemplated.
Psimo Movers-Continued Generators Total Installed Total Rated hp. Name Plate Number Generating Capacity Rated hp. of Station - Year Frequency Rating of Unit of Units in Kilowatts of Unit Prime Movers installed Vottage Phase or d.c. In Kilowatts in Station (name plate ratings) Line (h) (i) (D (k) (1) (m) (n) (o) (p) , No. 1480 1480 1937 2300 3d 60 cyl. 1000 1 1000 3 4250 5730 1951 4160 3d 60'cyl. 3300 1 3000 2 5100 10830 1955 4160 3d 60 cyl. 4000 1 3600 3 4250 15080 1943 4160 3d 60 cyl. 3250 1 3000 4 7760 22840 1972 4160 3d 60 cyl. 5600 1 5600 5 6 7 2880 2880 1962 4160 3d 60 cyl. 2000 1 2000 8 9 10 2880 57600 1962 4160 3d 60 cyl. 2000 1 2000 11 12 13 14
% 15
)
j 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 TOTALS 21,150 7 20,200 39 (-Q w.
5 GENEftATING STATION STATISTICS (Small Stations)
- 1. Sma!! generating stations, for the purpose of this or operated as a joint facility, and give a concise 5. If peak demand for 60 minutes 1
[ schedule, tre steam and hydro stations of less than statement of the facts in a footnote. able, give that which is available, specify,s not avail- ; tng penod. 2,500 KVi and other stations of less than 500 KW* ' 3. List plants appropriately under subheadings for installed ca acity(name plate ratings). (*10,000 KW 6. If any plant is equipbed with combinations of 1
; r nd 2,500 : W steam, hydro, nuclear internal combustion engine and steam, hydro, internal combustion engine or gas tur- o, Ing revenues o, respectively,if annual electric operat- gas turbme stations. For riuclear, see instruction 10 fnent e :
f respondent are $25,000,000 or more.) bine page 59. . plant.equifoweve,r,ach I should heat if the exhaust be reported from theasgasa separate ia
- 2. Desi:nate any plant leased from others, operated 4. Specify,if total plant c apacity is reported in kva turbine is utilized in a ste:im turbine regenerative feed under a heense from the Federal Power Ccmmission, instead of kilowatts.
- o water cycle, report as~one plant.'
i.j Production Expenses Fuel Cost iO Installed Net Pla nt Emetusive of Depreciation llame of Plant Capacity Peak Generatio
4 .
- . ts 5
G
- m
- , !O 8
in 9 its
- t=1 10
- m
. :xs 11 F IN ;
12 If0T applicable
!.U 13 14
- 4 13 i
j 16 17 i 18 i 19 i.
- y 20 21 i
,, 3
, , ?
a 231 f 24' ? E 25 3 26 27 ' 3 28 e TOTALS D
67 Annual report (f...T..O..W.N
...... . . ... ......Y3sr OF...!.!.U..D..S.O..N...L..I..O..H..T...A..N..D...P. 0. 7.l.E..R....D.E..PA.
-- ended Dec2mkr 31.19 80
.R..T..M..E.N..T.........
TRANSMISSION LINE ST.*.TICT!Q Report Information concerning transmisalon lines as indicated below. U Desi gnation Length (Pole Miles) Type of ze f Operating Supporting On Structures of On Structures of Nu ber Line from To Voltage Structure Line Designated Another Une Circuits and Material F40. (a) (b)- (c) (d) (e) (f) (g) (h) e m . _. __ 1 Marl-flodson Forest Ave. 2 Town Line Substation .ll5KV Steel 3.2 22 336.. MCM 3 at River St. Hudson Poles ACSR 4
" Linnet" 5
6 7 8 9 10 11 12 13 14 15 16 17 l'8 19 , Y .,0 21 22 23 24
. . ' ' ' ~ '~ -- ~~ -' +
25' 26 27 28 29 30 31 32 33 34 35 36 37 38 . 39 40 e 41 42 43 44
,% 45 (V )
I 46 M ALS 3.2 47 None 2
. *Where other than 60 cycle,3 phase. so indicate.; - ,
I. Report below the information ca!!ad for concernina autetatione SUBSTATIONS
- 4. lad 4 ente in column (b) the functional character of each sub. reamos of sole ownership by the respondent. For any e..t.taten or
$E of the respondent as of the end of the year. station. designating whether trenamaasion or distribution and whether j
- 2. Substatione which eerre but one industrial er otrat railway equipment operated onder Ic.ac. give manie of leimor. date a id tetried =
attended or unattanded. cf tune and annual rent. For any subet.non er equipa.ent westel euntomer should not be listed hereunder. 5. Show la columne (i), fj), and (L) special equipment euch as other than by reason of acte ownership or kwe. give nause af co*** sier
- 3. Substatione u.th esparities of less than 8000 kva, escept those rotary converters, rseta6ers, condensere, etc. and suaihary equipment
=
eerving customere with energy for reamle. may be grouped awrdang for enerossans capacity. er other party. esplain baana of sharms empen co of et1.er acevuntans V to funcuonal character. but the aunaber of such putmiatione snust between the parsees. and state aneo.eate und zerounta n.tected in
- 6. Dee gnate substations or major iterns of equipmvat lanaed frone respondent's books of account. bpecify in eseh ease = tuett er powe. $,
be shown. Othere. jomtly owned witta ethers, or oper ted other=Tse than by so-owner. or other party is sa assocasted eompany. .- Character Volta ge Convers!on Apparatus and Special Equipment Capacity of Number Number Name and Location of Substation ubstation Substation et Tra ns- of Spare Line Primary Second- In kva formers Tra ns. Number Total
- O. .
ary Tertiary In Service formers Type of Equipment of Units Ca pacity j" No. (a) (b) (in S..vice) (c) (d) (e) (f) (g) (h) (1) (j) (k) 1 !:: Cherry St. Hudson, MA Unattended B0001 24001 Not 19,200 2 None 2 None None None !E Distribution 13800 4160 3 rough". ![j 3 " 4 Out :"
- t-5Porest Ave. Hudson, MA Unattended 6
7 13.8 Distribution i
& Diesel Tie ll5KV 30001 NA. 80,000 2 None 8 .None 'None None Tie with NEPCo L3800 !"
9
-* - :*o 10 -
8 i.o 11 ty 12 i:n
. c3 13 tn
- m 14 :>
15
- m 16
!N
- t9 17 18
!.n 19_ :.
20 : 21 22 . 13 24 (. 25 g 16 E 27 7 28 2 3 29 i, 30
- 31 g
39- TOTALS ; 33 1 99,200 i 4 None Norte None :Q O , O, O
U Annualeenortof.. TOWN OF !!UDSO:: LIGi!T AND POWER DEPARTMENT. . . . . . . . . . . . . . . . OVERIIEAD DISTRII!UTION I.INES Ol'EHATED f'"'N Length (Pole Miles) .. k tine No. Wood Poles Steel Towers Total 1 Miles - Beginning of Year. . . . . . . . 174.4- 174.4
. 2 Added During Year. . . . . . . . . . . . . . . . . 5, .5 3 Retired During Y-ar. . . . . . . . . . . . . . . None None 4 Miles - End of Year. . . . . . . . . . . . . . 174.9 174.9 6
7 . 8 Distribution System Characteristics- A.C. or D.C., phase, cycles.and operating voltages for Light and Power. 9 Primary-distribJtion at 2400/4160r,;4800/8300Y,'8000/13800Y volts, 60 cycle, 10 3 phase secondary power at 600 iiolts,760 @yc16,{3'pfia5e13. wire; 3480 volts 11 3 phase, 3 wire; 277/480 volts, 3 phase'4' wire;*220' volts, 3 phase 3 or 4 wire'; ' 12 120/208 volt,s, 3 phase, 4 wire, lighting, he.ating and air conditioning
. 13 120/240 volts, 120/208 volts, 60 cycle single or three phase.
14 . ,
- 15. . . -
ELECTRIC DISTRIBUTION SERVICES, METERS AND I.INE TRANSFORMERS i Line Transformers Number of Total Line Electric Watt hour, Capacity ' [S No. Item Servic'es Meters Number -(kva)
\
U) 16 Number at beginning of year. . . . . . . . . . . . . . . . 6651 8209 2547 61705.5 17 Additions during year:
******* 229 18 Purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 2500.0 19 I nstalled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116. __- *******
20 Associated with utility plant acquired. . . . . . None None None None 21 Total additions . . . . . . . . . . . . . . . . . . . . . . . . 116 229 140 2500,.00 22 Reductions during year: 23 Ret.'rements . . . . . . . . . . . . . . ............. 40 87 None Now 24 Associated with utility plant sold. . . . . . . . None _ None None None 25 Total reductions. . . . . . . . . . . . . . . . . . . . . . . 40 87 None None 26 Number at End of Year. .............. 27 Instock................................................. 509 363 8562.0 28 Locked meters on customers' premises. . . . . . . . . . . . . . . . . . . . . . . . None None None 29 Inactive transformers on system. .... ...................... None None Nonc 30 I n customers' use . . . . . . . . . . . . . . . . . . . . . . '. . . . . . .~. . . . . . . . . . . . 7817 2316 55509.5 31 I n compa ny's use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 8- 134.0 32 Number at End of Year. . . ..... ..... ..... . 8351 2687 64205.5 3 V i V l l
,~ e ,. - , , - ,
CONDUIT, UNDERGROUND CC:LE AND SUBMARINE CABLE-(Distribut!!n Syst:m) Report beliw th? Infirm'.tlin es!!ed f r concerning conduit, und:rground e-b17, and submarine c;bfr tt yo end o Underground Cable _ E Designatten of Underground Distribution System Submarine Cab!e j No. Miles of Conduit Dank ; (s) (A!! S) es and Types) Miles
- b I Operating Volta ge . Feet *.
(b) (c) Operating Voltage e (d) (e) l 1 Route 495 Underpass (f) j i 2 Ilarvard Acres Estates, Stow .1 .1 13,800 i 3 Meadowbrook Mobile llome Park, Hudson 1.6
.0 6.4 13,800 !o?j i 4
Colburn &1 Margaret Circle,liudson 1.7 13,800 jo l 5 Main, Felton, Central St. Iludson '
.0 .2 4 ,8~00 i '
6 Seven Star Lane, Stow, MA .7 .7 13,800 i5 I
, 7 Forest Avenue, Hudson, MA .0 .09 4,800 ! 8.
8 Juniper Estates, Stow, MA , 1.5 1.5 13,800 j@ 9 Carriage Lane, Stow, MA .5 .5 13,800 i e. 10 Brigham Circle,liudson, MA .0 .14 4,800 iE 11 Rustic Lane, Hudson, MA .9 . ') 13,800 i 12 Wildwood Subdivision, Stow, MA .0 .2 - 4,800 l :5 - 13 Birch Hill Estates, Stow, MA .0 .6 13,800 ' i5 14 Appleton Drive, Hudson, MA - , 1.8 1.8 ' 13,800 j .o 15 Cedar Stuet, Hudson, MA .1 .1 '13,800 jS i - - 16 Country Estates, IIudson, MA .03 .03 4,800 i !$ 17 Deacon Benham Drive, Stow, MA .0 .34 4,800 je. 18 Forest Road, Stow, MA .0 .07 8,320 2, i50 19 Francis, Circle, Stow, MA .0 .22 8,320 j$ 20 Karen Circle, Hudson, MA .0 .1 4,800 jQ 21 .0 .07 ' 8,320 : !S 22 !U 23 . 24 l ' 25 i 26 l 27 :
- S i
?9 [
10 j 11 a
- 2 o (3 !
=
4 E-TOTAL 3 u
' Indicate number of conductors per cable.
7.23 1 ci .76 ~
% . 2
=
[
- 00 l :q u - -
71 Annuti r" port cf...T0..m. :..OF HU.E GON. L.I.G..!.!.T..
.. .......... .. A..N..D
.. P07 ER
. . . . . DEPART!JENT
. ...Yzr end:d Deccmber 31,19 B.O STREET LAMPS CONNECTED TO SYSTEM Type
',# Total Incandescent Mercury vapor Fluorescent Municipal Otner M unicipal Other M unicipal Other Municipal Other No. (a) (b) (c) (d) (e) (f) (g) (t ) (i) (j)
~[ Iludson 1855 174 499 18 2
1043 18 288 49 None None Nonc None None None 7 2 Stow .' .10 5 None 3 Berlin 1 1 None None None None None None None 4 Bolton 3 2 None None 1 None None None None 5 Marlboro 1 None None None 1 None None None None 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
,_ 21
/ 22 w 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46
,cs g l 48 j
49 50 51 TOTus 2034 607 20 1061 339 None; None None 7
T O7iER DEP ARTI.!D;T ..Ynt snd5d D&csmber 31.19BO Annur.1 r: port of. OWN .OF. !!U.D SON
. . . . L.1G.i!T
. ... A.UD P , , . ..
RATE SCIIEDULE INFOR3f ATION
- 1. Attach copies of all Filed Rates for General Consumers.
- 2. Show bel'w the changes in rate schedules during year and the estimated increase or decrease in annual revenue predicated on the previous year's operations.
2 Estimated M.D.P.U. Rate """*' """'" Date Schedule Eflective Number increases Decreases 3/1/80 72 Residential Rate "A" 192,460 3/1/80 69 All Electric Residential "F" 56,990 3/1/80 70 Sch7dule "G" Commercial Elec. 537 3/1/80 66 Schedule "B" Seasonal 1,115 3/1/80 67 Schedule "C" Commercial 37,915 3/1/80 68 Schedule "D" Power 51,983 3/1/80 71 Standard Fuel Clause None s,....- 9 r / 4 ^m.
81 P Annualreport cf... '.O..MI OF !!UDSON LICi!T AND PC17ER DEPARTI.!ENT
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Y ea r E ntf ed D octm bIr 31. 16 0 TIIIS RETURN IS SIGNED UNDER TIIE PENALTIES OF PERJURY ..
. . - . . .. . Mayor
. . Manager of Electric Light .
/.
../Q . .
. . . .( /'
, V . . . .
M M a.l , hi ( of the Municipal Light Board O w SIGNATURES OF ABOVE PARTIES AFFIXED OUTSIDE TIIE COMMONWEALTII OF MASSACIIUSE*ITS MUST LE PROPERLY SWORN TO
.. ss. .. I 9..
Then personally appeared . . . . . f and severaDy made oath to the truth of the foregoing statement by them subscribed according to their best knowledge and belief. m - i ) t CJ ! Notary Public or Justice of the Peace L
g I INDEX
) Appropriations of Surplus . . . . . . . . . . . . . . . . . . . .
Page 21 Appropirtions Since Beginning of Year . . . . . . . . . . . . . . . . . 5 Bonds . . . . . . . . . . . . . . . . . . . . . . . . . 6 Cash Palances . . . . . . . . . . . . . 14
- r. . . . . . . . . . . .
l' ' Changes in the Property . . . . . . . . . . . . . . . . . . . . S' 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. Afeters and Line Transformers . . . . . . . . . . . . . 69 Electric Energy Accounts . . . . . . . . . . . . . . . . . . . . . 57 Electric Energy Purchased . . . . . . . . . . . . . . . . 54,22 Electric Opersting Revenues . . . . . . . . . . . . . . . . . . 37 Electric. Operation and Af aintenance Expenses . . . . . . . . . . . . . . . . 39-42 General Inforntation . . . . . . . . . . . . . . . . . . . . . . 3 Generating Station Statistles . . . . . . . . . . . . . . . . . . . 58-59 Generating Station StatisG:s (Sma!! Stations) . . . . . . . . . . . . . . . . 66 Ilydroelectric Generating .itations . . . . . . .. . . . . . . . . . 62-63 Income from Aferchandising. Jobbing and Contract Work . . . . . . . . . . . 51 Income Statenient . . . . . . . . . . . . . . . . . 12-13 Afsterials and Supplies . . . . . . . . . . . . . . . 14 A!!scellaneous Credits to Surplus . . . . . . . . . . . . 21 A!!scellaneous Debits to Surplus . . . . . . . . . . . . . 21 Aliscellaneous Nonoperating Ir :ome . .
. . . . . . . . . . 21 Afonthly Peaks and Output . . . . . . . . . . . . . . . . 57 Af unicipal Revenues . . . . . . . . . . . . . . . . . . 22 Other Income Deductions . . . . . . . . . . . . . . . 21 Other Utility Operating Income . . . . . . . . . . . . . 50 Overhead Distribution Lines Operated . . . . . . . . . . . . . 69 Prodrction Fuel and Oil Stocks . . . . . . . . . . . . . 18 Rate Schedule Information . . . . . . . . . . . . . . . . . 79 Sales of Electricity to Ultimate Consumers . : . . . . . . . . . . . . . .w - . 38-Sales for Resale - Electric . . . . . . . . . . . . . . . '. 52.22 SchedJe of Estimates . . . . . . . . . . . . . . 4 Steam Generating Stations . . . . . . . . . . 60-61 Street Lamps . . . . . . . . . . . . . . . 71 Substations . . . . . . . . . . . 68 Taxes Charged During Year . . . . . . . . . . . 49 Town Notes . . . . . . . 7 Transmission Line Statistics . . . . . . . . . . 67 Utility Plant - Electric . . . . . . . . . . . . . . . 15-17
, Page i FOR GAS PLANTS ONLY: I
. Boilers . . . . . . . . . 70 Gas Distribution Services and IIouse Governors and Afeters . 78 Gas Generating Plant . . . . 74 I 43
. _. . . Gas Operating nevenua . . . . . . . . . .
I i Gas Operation and Af aintenance Uxpenses . . . . . 45-47 ( ./ liolders . . . . . . . . . . . . . . . 7G Purchased Gas . . . . . . . . . . . 48 Purifiers . . . . . . . . . 7G Record of Sendout for tb. Year m AICP . 72-73 []' Sales for itesale .
. . . 48
? . .
C/ Sales of Gas to Ultimate Consumers . . 44 Sales of Residuals . . . . . . . . 48 Scrubbers. Condensers and Exhausters . . . . 75 Transmission and Distribution F.lains . . . . . . . 77 i 1
( ( ( V b V TOkN OF HUDSON PAGE 1 l OPFWATING NEVENUFS AND EXPVhSES FON THE PEHIUD 03/01/H1 TO 03/31/81 ACCouNf HuuGET MONTb & MONTH % HUDGET YTD.MuhTH % YTi. wDhTH % DESCkIPTION ALLOWANCE YEAP PHV. YEAR ALLOhANCE YEAR PNV= YEAR
-OPERATING HEVENHF NESIDENTIAL SALEh 00 13h,352.H6 16.3 306,503.22 43.R 00 526,970.39 18.4 918.750.53 43.0 COXMERCIAL SALES .C0 25,972.09 s.O 37,0HO.H5 5.3 00 82,440.90 2.0 108,203.05 5.0 P0XER 6 ALES 00 139,031.9e 16.3 264,086.25 37.7 00 437,814.76 15.3 776,616.44 36.4
#UNICIPAL SALESt STREET LIGHTING HUDSON 00 5,830.20 .h 4,621.11 6 00 18,921.69 6 14,R68.62 6 STPEET LIGHTING-STOW ET 00 345 0 527.69 0 00 1,037.01 0 1,601.13 -- 0 MUNICIPAL PowfR HUDSON 00 7,30%.6771 .H 14,527.13 2.0 . 'J 0 23,401.06 8 44,477.12 2.0 NUNICIPAL COMM HUDSON 00 915.55 1 1,987.36 2 00 2,588.27 .n 5,795.77 2 CUNICIPAL POWEH STOW ET 00 2,061.62 2 4,808.61 6 00 6,655.31 .2 14,H91.45 6 KUNICIPAL COMM STOW ET 00 388.62 0 625.06 0 00 1,509.45 0 1,H31.94 0 EUNICIPAL ALL ELECTRIC 00 13,163.26 1.5 39,392.83 5.6 00 54,051.78 1.8 119,295.94 5.5 SALES FOR-RFSALE- -
00 6,615.16 .' 25,374.17 3.6 00 44,167.82 1.5 127,168.66 5.9 TOT REVf.NUE SALES OF ELEC 00 340,181.70 40.1 699,535.68 100.0 00 1199,558.44 42.0 2133,507.65 100.0 FUEL CHARGE HESIDENTIAL SALES.FUFL 00 176,445.H5 20.P 00 0 00 163,240.48 26.7 00 0 COMMEHCIAL SALES. FUEL 00 20,609.26 2.4 00 0 00 73,033.22 2.5 00 0 POWER SALES. FUEL 00 206,132.44 24.3 00 0 00 719,713.46 25.2 00 0 MUNICIPAL FUEL CHARGESt STREET- LTG-s*0W- ET.FUEt, - 00 - 241.00 0 00 0 00 863.75- 0 00 0 ! CONI POWER HUDSON. FUEL 00 9,633.98 1.1 00 0 00 33,791.87 1.1 00 0 Muh! COMM HUDSON. FUEL 00 742.55 0 00 0 00 2,298.74 0 00 0 mu:11 P0 DER STOW ET. FUEL 00 2,341.10 2 00 0 00 8,278.14 .2 00 0 NUNI COMM STOW ET. FUEL 00 31H.00 0 00 0 00 .,398.67 0 00 0 MUNI ALL ELECTRIC.FUEb 00 25,928.40 3.0 00 0 00 114,166.20 4.0 00 0 811&C. ELECTRIC-SALES- 00 65,321.97 7.7 00 0 00 (64,903.21) 2.2 00 0 TOTAL FUEL CHARGES 00 507,714.55 59.8 00 0 00 1651,081.32 57.9 00 0
- OTHER OPERATING-REVENUEss- - - - - - -- - --- -- - - - - - -- -
RENT FROM ELECT PROPERTY 00 00 0 00 0 00 00 0 00 0 OTHER ELECTRIC REVENUFS 00 00 0 00 0 00 00 0 00 0 OTHER ELEC. REVENUES.HCS 00 00 0 00 0 00 00 0 00 0 TOTAL OTHER OPERATIhG REV 00 00 0 00 0 00 00 0 00 0 TOTAL INCOME 147,H96.25 H47,R96.25 100.0 699,535.68 100.0 2851,439.76 2851,439.76 100.0 2133,507.65 100.0 i
O O O TO ud nF Pt10SnN PAGE 2 UPERATING REVENUES AND EXPENSFS FOR THE PFkIOD 03/01/H1 TO 03/31/81 ACCHONr HUDGEt MON 1H % PONTH % H!!DGET YTD unN*H % YTD. MONTH % DESCRIPTION ALLOWANCE YEAR PNV=YEAP ALLOWANCE YEAR PRV. YEAR
- EEPENIESt - - - -
PRODUCTION 31,072.48 39,012.32 4.6 75,816.30 10.R 224,285.36 164,150.01 5.7 301,943.30 14.1 PdRCHASED FOWER EXPENSE 708,918.47 664,323.d9 78.3 463,973.89 66.3 2161,776.21 2036,832.90 71.4 1444,998.98 67.7 TRANSMISSION EXPEhSES 16,695.00 14,971.51 1.7 15,053.89 2.1 50,085.00 4L901.38 1.5 43,019.50 2.0 DISTRIBUTION EXPENSES 17,R55.00 21,514.10 2.t 18,H41.73 2.6 49,829.00 45,R55.02 1.6 44,959.70 2.1 GENERAL & DEPRECIATION 109,679.95 102,223.03 12.0 94,238.81 13.4 317,676.99 283,363.67 9.9 265,833.23 12.4
-? AXES OTHER-THAN-INCOME 00 00 0 00 0 00 00 0 00 0 TOTAL OPENATING EXPENSES H84,220.90 842,044.85 99.3 667,924.62 95.4 2303,652.56 2574,102.98 90.2 2100,754.79 98.4 INTEREST EXPENSES:
INTEREST ON LONG TERM Dh1 00 00 0 00 0 00 00 0 00 0 OTHEA II;TFREST-EXPENSE 00 520.81 0 2.33 0 00 584.26 0 2.33 0 TOTAL INTEREST EXPENSE 00 520.81 0 2.33 0 00 584.26 0 2.33 0 TOTAL EXPENSES 8b4,220.90 842,565.66 99.3 667,926.95 95.4 2803,652.56 2574,687.24 90.2 2100,757.12 98.4 NET OPERATING PROFIT (36,324.65) 5,330.59 6 31,608.73 4.5 47,797.20 276,752.50 9.7 32,750.53 1.5 OTHER INCOME: INCOXE FROM CONThACT WORK 00 00 0 00 0 00 00 0 00 0 i INTETEST & DIV.- INC0kE - - 8,536.33 8,536.33 1.0 4,035.59 5 0,854.60 8,854.60 3 5,916.30 2 MISC NONOPERATING INCOME 00 00 0 00 0 00 00 0 00 0 TOTAL OTHER-IhCOME 8,536.33 8,536.33 1.0 4,035.59 .5 8.854.60 8,854.60 3 5,916.30 .2 NET PROFIT-BEFORE -RETURN - ( 2 7,'t J 8. 3 2 ) 13,866.92 1.6 35,644.32 5.0 56,641.80 285,607.12 10.0 38,666.03 1.8 LESS1 RETURN TO TOWN 14,583.33 14,583.33 $.7 14.583.33 2.0 43,749.99 43,749.99 1.5 43,749.99 2.0 TOTAL RETURN TO TOWN 14,583.33 14,583.33 1.7 14,583.33 2.0 43,749.99 43,749.99 1.5 43,749.99 2.0 NET INCOhE (Ln55) (42,371.63) (716.41) .o 21,060.99 3.0 17,891.81 241,857.13 8.4 (5,083.16) 2 n=sss=s==== ===massazza z=sza====== =s========= =z========= san = sass =as
(~ i (' m_ j (_1 IDWN OF HUDSON FAGE 1 M TAIT. OF OPERATlhG EXPENSFS FOR THE PERIOD 03/01/81 TO 03/31/81 ACCOUNT HUDGET mph 1h ik MONTH % H U D G t'T YTD. MONTH % YTD.h0N7H % e DESCRIPTION ALLOhANCE YEAR PRV. YEAH ALL0aAhCE YEAR PRV. YEAR
- EXPENSEst -- -- --
PN000CTION OPERATION SUPERVISION 1,119.00 1,219.99 .1 1,340.92 .1 2,769.00 2,729.47 0 3,147.20 .1 FUEL 01L 1,655.00 1,268.14 1 29,675.89 4.2 146,693.00 65,827.83 3.0 219,739.39 10.2 FUEL NATURAL GAS 00 00 0 23,201.60 3.1 00 00 0 23,201.60 1.0 GENERATIOf4 EXPENSE 11,900.00 9,351.13 1.1 11,447.46 1.6 29,500.00 25,693.45 9 28,670.01 1.3 GENERATIO4-EXPENSE.LUB 430.00 323.77 0 977.04 .1 3,500.00 2,148.80 0 3,551.04 1 MISC OTHER POWER GEN FXP. 7,406.4R 6,552.29 7 2,A50.97 4 16,725.36 14,R99.19 5 6,110.54 2 MAINTENANCE SUPENVISION 1,119.00 1,194.40 .1 761.02 .1 2,769.00 2,695.35 0 1,564.97 0 MAINTENA' ICE OF STRUCTUNES 283.00 107.02 0 21.12 0 849.00 143.80 0 79.59 0 NAINT OF GEN & ELECT Pt.A 7,000.00 18,533.02 2.1 5,529.08 7 21,000.00 29,425.91 1.0 15,H00.51 1 HAINT OF MISC GEN PLANT 160.00 462.56 0 10.40 0 480.00 586.21 0 70.39 0 TOTAL PRODUCTION EXPENSE 31,072.48 39,012.32 4.6 15,816.30 10.8 224,285.36 164,150.01 5.7 301,943.30 14.1 PUNCHAEED POWER EEPENSE PURCH-5ED POWER 391,953.60 350,017.70 41.2 316,461.50 45.2 1177,019.55 1083,090.94 37.9 878,315.29 41.1 PUNCH. POWER = ENTITLEMENT 259,734.37 242,071.55 28.5 66,221.38 9.4 750,264.11 691,493.58 24.2 206,259.14 9.h PURCHASED POWER.NEPFX- 51,330.50 61,75R.40 7.2 77,922.19 11.1 216,792.55 247,616.46 8.6 352,102.86 16.5 SYS. CONTROL & LOAD DISP. 1,700.00 1,618.77 .1 1,199.99 .1 5,100.00 5,736.45 2 2,842.56 .1 DiHER EXPENSES PURCH. POW 4,200.00 8,857.47 1.0 2,149.64 3 12,600.00 8,895.47 3 5,479.13 2 g ........... ........... ........... ........... ........... ........... TOTAL PURCHASED P0nER 708,918.17 664,323.89 *s 8 . 3 463,913.89 66.3 7161,776.21 2036,R32.90 71.4 1444,999.9R 67.7
-T.* A 2
- d I S S ION AXPENSES --- -. .__
OPERATION SUPER. & ENG. 00 00 0 00 0 00 00 0 00 0 LnAD DISPATCHING 00 00 0 00 0 00 00 0 00 0 STATION EXPENSES- 20.00 00 0 00 0 60.00 00 0 13.44 0
, DVERHEAD LINF EXPENSE 00 00 0 00 0 00 00 0 00 0 TRANS. OF ELECT.HY OTHERS I6,225.00 14,971.51 1.7 15,053.69 2.1 48,675.00 43,875.58 1.5 43,006.14 2.0 '-4I SCELL ANEOUS. -TS ANS - EXP. -
00 .. 00 0 00 0 00 00 - 0 00 0 MAINT. SUPERVISIdh & ENG 00 00 0 00 0 00 00 0 00 0 GAINT OF STRUCTURES 200.00 00 4 00 0 600.00 00 0 00 0 GAINT. OF STATION EQUIP. 40.00 00 ,s ,00 0 120.00 00 0 00 0 GAINT. OF OVERHEAD LIhES 210.00 0' 0 00 0 630.00 25.80 0 00 0 "AINT. OF MISC. TRANS PLT 00 00 0 00 0 00 00 0 00 0 TOTAL TRANS. EXPENSE 16,695.00 14,971.51 1.7 15,053.d9 2.1 50,085.00 43,901.3R 1.5 43,019.5R 2.0 DISTRIhdTION EXPENSES i OPERATION SUPER. & ENG 1,119.00 1,194.40 1 1,105.36 1 2,769.00 2,543.22 0 2,628.52 1 l STATION EXPENSES 00 00 0 00 0 00 00 0 00 0 L O W ER H E AD- 1,I NOE".P ENSE 93.00 - 26.05 0 53.17 0 249.00 134.48 0 -133.21 0 UNDERGROUND LINE EXPENSE 00 00 0 00 0 00 00 0 00 0 STREET LIGHTING & SIG EXP 400.00 511.39 0 472.65 0 1,200.00 1,193.32 0 1,129.20 0 NETEP EXPENSES -- 1,240.00 932.59 1 1,196.e4 .1 3,220.00 2,530.68 0 3,178.01 1 1
,n i b\
(V) J V = TOmN OF HunSfM PAGF 2 DFTAIL nF OPERATING EXPEriSES FOR TF.C PEHIOD 03/01/81 TO 03/31/H1 ACCOUNT tsuuGET '001H t *0hTH w tmDGET YTO.uuNTH & YTD.80 NTH & DESCRIPTION ALLOWANCE YFAR PRV. YEAR ALI.0d ANCE (EAR PNV.YFAR CUST0XER INSTALL. EXPENSE H00.00 997.63 .1 429.OR 0 2,100.00 3,412.25 1 1,20R.75 0 MISC DISTRIHUTION EXPENSE 100.00 HR.Hb 0 2,427.67 3 1,340.00 (1,064.48) 0 5,3R3.51 2 MAINT. SUPERVISION & VNG. 1,119.00 1,194.40 1 1,105.36 1 2,7h9.00 2,543.22 0 2,629.52 1 00 0 00 00 0 00 0 RAlhT OF STATION t00lP 00 00 0 MAINT. OF OVERHtAD LINES 11,800.00 12,767.36 1.5 10,920.95 1.5 32,600.00 30,230.31 1.0 24,443.14 1.1 MAINT OF UNDERGROUND LINE 250.00 00 0 182.25 0 750.00 00 0 1H2.25 0 0 600.00 0 1,235.00 0
' CAINT OF LINE TRANSFORMER 200.00 (1.90) 0 00 (1.90) 0 HAINTENANCE OF STREET LTG 700.00 2,523'.9% .2 348.00 0 2,100.00 2,665.64 0 2,020.24 MAINT OF METERS 44.00 1,279.33 .1 600.40 0 132.00 1,678.08 0 7H8.75 0 0 00 0 00 00 0 00 0 MAINT OF MISC. DIST PLANT 00 00 TOTAL DISTRIBUTION EXP 17,855.00 21,514.10 2.5 18,841.73 2.6 49,d29.00 45,855.02 1.6 44,959.70 2.1 GENERAL & DEPRECIATIOh SUPEHVISION 562.00 543.h2 0 4R9.97 0 1.392.00 1,319.94 0 1,185.30 0 EETED READING EXPENSE 6 2,0(0.00 1,884.03 2 1,854.ho 2 5,430.00 5,000.15 1 5,129.77 .2 CUST. RECORDS & COLL. EXP 6,5W1.00 5,835.33 6 5,149.03 7 17,743.00 16,003.96 5 12.324.83 5 UNCOLLEC1IBLE ACCOUNTS 1,916.66 840.39 0 1,274.81 1 9,749.48 4.33R.12 1 3,029.43 1 ADVERTISING EXPENSE- 5.00 15.00 0 30.00 0 15.00 15.00 0 30.00 0 MISCELI,ANEOUS SALES EXP. 1,060.00 00 0 00 0 5,580.00 4,3C5.91 1 00 0 ADMINISTRATIVE & GEN S A l.. 9,485.00 10,046.47 1.1 R,595.63 1.2 23,495.00 22,844.27 .R 21,095.68 9 0 872.67 1,503.00 2,093.64 0 1,477.97 0 0FFICE SUPPLIES & EXPENSE 500.00 7.9.72 1 1,379.07 0 OUTSIDE SERVICES EMPLOYED 1,250.00 326.90 0 375.00 0 3,750.00 1,356.11 0 PROPERTY I N S U R M.CE 1,083.31 1,083.33 .1 1,0R3.33 .1 3,249.99 3,249.99 1 3,249.99 1 (
INJURIES AND-DAMAGES - 3,750.00 3,750.00 4 3,916.66 5 11,250.00 11,250.00 3 11,749.98 5 { EMPLOYEE PEN. & BEN. DIST 12,141.95 13,22h.74 1.5 11,190.14 1.5 34,627.95 29,388.01 1.0 31,987.47 1.4 EMPLOYEE PEN.& HEN. GEN. 9,939.04 10,167.63 1.1 9,160.96 1. 3 28,367.'4 27,056.50 9 25,707.02 1.2 EMPLOYEE PEN.& HEN. OFF. 7,877.44 7,966.11 9 7,033.43 1.0 19,531.44 20,141.54 7 17,479.7R .H CEGULATORY COMM. EXPENSE 750.00 00 0 00 0 2,250.00 00 0 4.90 0 779.44 1,271.80 .1 2,749.98 2,569.1% 0 1,473.73 0 MISCELLANEOUS GENERAL EXP 916.66 0 , CAINT. OF GENERAL PLANT -2,783.33 1,393.07 1 932.31 .1 8,349.99 5,681.25 1 3,01H.29 1 TRANSPORTATION EXPENSE 3,683.00 1,116.71 1 (133.51) 0 11,049.00 (856.48) 0 2,096.48 0 DEPRECIATION EXPENSE 42,535.54 42,535.54 5.0 41,141.18 5.8 127,606.62 127,606.62 4.4 123,423.54 5.7
- 10TAL GENERAL & DEP. EXP 109,679.95 102,223.03 12.0 94.238.81 13.4 317,676.99 283,363.67 9.9 265,833.23 12.4
- TAKE%CTMER--THAN-INCOME -- --
00 - 00 0 00 0 00 00 0 00 0 TOTAL. OPERATING EXPENSLS 894,220.90 842,044.h5 99.3 667,924.62 95.4 2803,652.56 2574,102.98 90.2 2100,754.79 98.4 assassassas assassan=ss assassasssa sazzs=sassa smas=== sass sazzazassas h-+ . . , , ,
1 l O L. . . - . . . .. Ttl > N OF btfDSON PAGE 1 STAit*ENT OF tsNAPvp0PHIATED EARNED SilRPLUS FOR THE PERInD 03/01/91 TO 03/31/01 i
, EARNED SURPLUS JANUARY 1 Se2h,428.38 - - -
NF.T PROPYT OR-(LOSS) - - 241,957.13 ---- - WISC. CREDITS TO SURPLUS 00
' TOTAL $868,2e5.51 j APPRO, OF SUR. RET TO TmN 00 -
~ APPRO.OP-SUR.-Rtf-TO-TwM -
.00 ----
APPHO.0F SUHPLUS . BuhDS 9J MISC DErlITS 70 SURPLUS 00 TOTAL 00 TOT.UNAPP. EARNED StiRPLUS 5868,285.51 m 'u' eage.m. s e .**MN l t 4 = w I -**
,.,. ,-me.. , . --ee . - - e.em**=* h e,,,w. =-wee == ___
t
. . _ .~ . .... --. --- - - -- - -
1
/
TOmh DF HUDSot' PAGE 1 HA1.Af.CE SHEET AS OF 03/31/H1 AS OF 03/31/80 ASSETS UTILITY PLANT PRODUCTION PLANT 4 722.h25.08 8 626,459.40
-THANS4ISSION PbANT- -
1,169,616.36 1,384,589.24 DISTRIBUTION PLANT 1,046,779.03 1,051,169.67 GENERAL PLANT 587,969.43 545,768.17 CONETRUCTION woHK IN PHOG 1,314,428.26 1,105,155.93 TOTAL UTILITY PLANT s 4,841,618.16 s 4,713,162.61 CURRENT & ACCRUED ASSETS CASH ACCOUNTS OPERATIONS CASH s 255,684.54 s 45,035.51 MISCELLANEOUS CASH H2,033.94 5,569.34 DEPRECIATION-FUND-~ - 78,061.99 141,020.40 DEPRECIATION FUND. INVEST. 1,146,393.79 1,286,999.59 CONSTRUCTION CASH 1,f44.71 12,208.05 ADVANCES FROM CONTRACTORS 4,50s.00 11,142.67 PETTY CASH 200.00 100.00 DEPOSITS INTEREST ACCOUNT 9,185.18 8,345.56 CUITOZ EA- DEPO 81TS-ACCOUN T 85,777.97 78,707.28 TUT 4L CASH ACCOUNTS $ 1,663,3d5.12 s 1,589,123.40 CURRENT & ACCRUED ASSETS CUSTOMER ACC. RECEIVA81.E $ 1,005,287.15 s 805,433.11 OTHER ACCOUNTS RECEIVABLE 13,728.43 21,956.19 ACCOUNTS REC ASSOC DEPT. 18,471.97 92,367.66 NATERIALS AND SUPPLIES 971,666.10 689,R49.92 PHEPAYKENTS . 107,388.16 177,605.30 INTENEST & DIVIDENDS REC. 00 14,008.69 ACCRUED UTILITY REVENUES 131,423.21 00 4tSC CUR. & ACCRUED ASSF.T 00 00 TOT CORNENT & ACC ASSETS s 2,247,965.02 s 1,R01,220.87 DEFERhED ASSETS PRELIMINARY SURVEY CHARGE s 293,45H.H2 s 86,045.77 NISC. DEFERRED DERITS 6,445.55 6,450.62 TOTAL nEFERREta ASSFTS S 2w9,904,37 s 92,496.39 TOTAL ASSETS S 9,052,H72.e7 s 8,19h,003.27
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_ - - - _ _ _ - _ . - _ _ . _ _ ~ . . -- . a b TonN OF HUDSUA PAGE 2 & 1' L i RALANCE SHEET 3 AS OF 03/31/61 AS OF 03/31/80 J. LIABILITIES & SURPLUS 1,
. CURRENT & ACCHUED LIAh.
ACCOUNTS PAYAHLE s 1,010,476.05 s 911,872.11 ! ' RETURa TO MUMICIPAt ITY l - -- - 43,749.99 -- 43,749.99 - - f CUSTOMERS DEPOSITS 95,777.97 78,702.28 j CUSTnuEk DEPOSIT INTEREST 9,1s5.18 8,345.56 INFEREST ACCHUED 00 00 1 4ISC, CURR & ACCRUED LIAH 52,054.58 65,819.66
- 1 CUST. ADV. FON CONSTRUCT. 38,250.00 38,600.0n 3 - OTHER DEFERRED-C9E01T6 - 00 --- 00 i ............. .............
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*0TAL CUR & ACC LIAH. $ 1,239,493.77 $ 1,147,089.60 I LONG TERM DEMT >
BONDS $ 00 $ 00 ' }i -- _ _ _ . . _ _ _ _ _ . . _ . . ............. . . . . ............. _ l ! TOTAL 80NDS & NOTES $ 00 $ .Or i SURPLUS ! { LOANS REPAYMENT s 1,925,000.00 s 1,925,000.00
; INVESTMENT BY THE TOhN 20,093.39 20,093.39 q - UN APPRO. -EAREED-SURPLUS --
5,868,285.51.---. 5,103,820.28 - - - - j TOTAL SURPLUS $ 7,H13,37R.90 $ 7,04R,913.67 1 I i i 7 1 l ' l l i i 4 i ' i i i
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" Dedicated to Service" i March 18, 1981 Department of Public Utilities State Office Building, Government Center 100 Cambridge Street Boston, MA Attn: James D. Simpson Gentlemen:
We submit herewith, in triplicate, copies of rate schedules M.D.P.U. 73, 74, 75, 76, 77, 78, 79, 80, 81, +82and 83 which will become effective on our entire system on April 1, 1981. As ~ required for municipal' plants under Chapter 164, these schedules will be advertised in the local newspaper. In accordance with Chapter 143, Acts of 1809, the Manager of the Hudson Light and Power Department will meet with the Selectmen of the Town o.f Stow on March 24, 1981 and will inform the Selectmen of the reasons for the rate changes and, further, will submit the new electric rates along with pertinent informa-tion on the increase in revenue to our Department to the Stow Board of Selectmen. Will you kindly acknowledge receipt of these letters and the enclosed rage schedules by stamping the duplicates and return them for-our files. Very truly yours, H. HUEHMER O HH/mak Enclosures Manager s
I o SEABROOK STATION GENERAL and FINANCIAL INFORMATION l 'O PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE SEABROOK, NEW HAMPSHIRE O Volume 3
GENERAL AND FINANCIAL INFORMATION TABLE OF CONTENTS INTRODUCTION General Information As to Applicants. Agreement for Joint Ownership, Construction and Operation of New Hampshire Nuclear Units. TAB 1 Public Service of New Hampshire 1 2 Bangor Hydro-Electric Company 1 3 Canal Electric Company 4 The Connecticut Light and Power Company 5 Fitchburg Gas and Electric Light Company 6 Town of Hudson, Massachusetts Light and Power Department 7 Central Maine Power Company 8 Maine Public Service Company ^ 9 Massachusetts Municipal Wholesale Electric Company 10 Montaup Electric Company 11 New England Power Company , 12 Taunton Municipal Lighting Plant Commission i 13 Vermont Electric Cooperative, Inc. 14 Central Vermont Public Service Corporatfon 15 The United Illuminating Company 16 New Hampshire Electric Cooperative, Inc. 1 N
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i CENTRAL MAINE POWER COMPANY I ) Units No. 1 and No. 2 i I Seabrook Nuclear Power Station 1 Seabrook, New Hampshire i i Information~ furnished pursuant to $ 50 33 , [ of Commission's Rules and Regulations with l respect to the particular Applicant named above as part of Final Safety Analysis Report f ani Operating License Application for the l above Units. [ i July 1981 i r I
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Q Central Maine Power Company I. ORGANIZATION AND CONTROL (a) Name of Applicant Central Maine Power Company (CMPCo. ) (b) Address of Applicant Edison Drive Augusta, Maine 04336 (c) Description of Br.siness of Applicant CMPCo. , a Mains corporation organized in 1905, is an electric utility engaged in the generation, purchase, transmiesion, distribution and sale of electric energy in the southern and central part of Maine. It has its principal executive offices at Edison Drive, Augusta, Maine 04336, and its telephone number is (207) 623-3521. CMPCo. is the largest electric utiltity in Maine, serving about 380,000 customers in a 10,600 cquare-mile area in
) southern and central Maine. No other electric utility operates in competition with CMPCo. in the territory which it serves. This area, in which nost of the State's industry is located, includes the industrial centers of Portland, South Portland, Westbrock, Lewiston, Auburn, Rumford , Brunswick, Bath, Biddeford, Saco, C: nford, Gardiner, Augus ca, Waterville, Fairfield, Skow ?gan, Belfast and Rockland. The population of the service area is about 800,000, approximately 70 percent of the total population of the State. The more important industries served are pulp and paper products, cotton and wool textiles, metal trades, chemicals, plastics, electronic components, food processing, lumber and woodworking, footwear and shipbuilding.
(d) Corporate Organization CMPCo. is a corporation organized under the laws of Maine. As of June 1,1981, CMPCo. had 49,565 domestic shareholders owning 14,028,387 common shares and 59 foreign shareholders owning 11,556 common shares. (e) Corporate Officers and _ Directors p The names and residence addresses of CMPCo.'s directors and principal officers are as follows: (]
() Central Maine Power Company Name Residence Directors Priscilla A. Clark 11 Depot Road Falmouth Foreside, Maine 04105 Galen L. Cole 71 Norway Road Bangor, Maine 04401 E. James Dufour Canaan Road Skowhegan, Maine 04976 George H. Ellis 177 Benvenue Street Wellesley, MA 02181 Leon A. Gorman 16 Portland Street Yarmouth, Maine 04096 E. Clifford Ladd One Woodland Road Rockland, Maine 04841 () Roland L. Marcotte 17 Champlain Avenue Lewiston, Maine 04240 Charles E. Monty 91 Purinton Avenue Augusta, Maine 04330 Carlton D. Reed, Jr. Day's Ferry Woolwich, Maine 04579 John J. Russell 218 Foreside Road Falmouth, Maine 04105 Robert F. Scott 1 Greenwood Terrace Winthrop, Maine 04364 Halsey Smith Highview Road South Freeport, Maine 04078 Elwin W. Thurlow 5 Sylvan Road Farmingdale, Maine 04347 James H. Titcomb 17 Shawmut Avenue Sanford, Maine 04073
Central Maine Power Company ( Name Residence Officers E. Clifford Ladd, Chairman of the One Woodland Road Board of Directors Rockland, Maine 04841 Elwin W. Thurlow-President and Chief 5 Sylvan Road Executive Officer Farningdale, Maine 04347 Charles E. Monty, Sr. VP, Engineering 91 Purinton Avenue and Production Augusta, Maine 04330 Robert F. Scott, Sr. VP, Customer 1 Greenwood Terrace Services Vinthrop Maine 04364 Thomas C. Webb, Sr. VP, Finance Worthing Road Manchester, Maine 04351
)
s Norman J. Temple, VP, Legislative and 155 Dresden Avenue Public Affairs Gardiner, Maine 04345 Matthew Hunter, VP, Administrative 5 Orchard Street Services Farmingdale, Maine 04347 John B. Randazza, VP, Nuclear R.F.D. #1, Operations So. Harpswell, Maine 04079 Ralph L. Lean, VP, Engineering 8 Mayflower Road l Hallowell, Maine 04347 Donald F. Kelly, Assistant Vice 25 Maple Street President Gardiner, Maine 04345 Robert S. Howe, Comptroller 5 Mayfair street Augusta, Maine 04330 b
\/ Richard A. Crabtree, Treasurer 6 Skyline Drive Chelsea, Maine 04330
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i Central _ Maine Power Company Name Residence Officers (contd) David E. Marsh, Assistant Treasurer 90 Court Street Augusta, Maine 04330 Seward 3. Brewater, Secretary and Clerk Pond Road Manchester, Mair.e 04351 William M. Finn, Assistant Secretary 38 Sewall Street and Assistant Clerk Augusta, Maine 04330 All of the directors and principal officers of CMPCo. are citizens of the United States of America. CMPCo. is not owned, controlled or dominated by an alien, foreign corporation or foreign government. II. FINANCIAL QUALIFICATIONS Under the Joint Ownership Agreement, CMPCo. is responsible for its Ownership Share _ of the operation and maintenance cost of the Units which, when the pending transactions described herein have been consummated prior to commercial operation, will be 6.04178% of those costs, and a similar percintage of the ultimate cost of decommissioning the Units. Based upon the estimates set forth above under Part IV of.the General Infomation, CMPCo. 's share of these costs should amount approximately to $9,063,000 and $9,063,000 for the first five years of operations of Units 1 and 2, respectivoly; and approximately
$2,538,000 to $5,196,000 for the decommissioning c7 the two Units.
In addition, CMPCo. 'o share of fuel expensos during the period would l be $30,994,000. As evidence of its financial qualifications to meet those costs, CMPCo. submits herewith: (i) 1983 Annual Report on Form 10-K and 1980 Annual Report to Stockholders (Exhibit C-1) (ii) Quarterly Repcrt en Form 10-Q for the quarter ended March 31, 1981 (Exhibit C-2) , s [
Central Maine Power Company
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t l II. FINANCIAL QUALIFICATIONS (contd) 1 (iii) Prospectus, dated April 15, 1981, relating to General and Refunding Mortgage Bonds - Series D (Exhibit C-3) (iv) Proposed Increase in Rates, Docket Nos. 80-25 and 80-66 (Exhibit C-4) III. REGULATORY AGENCIES AND PUBLICATIONS (a) Regulatory Agencies The following regulatory agencies have jurisdiction ever the rates and services of CMPCo. Maine Public Utilities Commission . State House Annex 242 State Street Augusta, Maine 04333 Federal Energy Regulatory Commission 825 North Capitol Street Washington, DC 20426 (b) Publications The following trade and news publications are used by CMPCo. for official notifications, and/or are otherwice appropriate for notices regarding this unit: Kennebec Journal 274 Western, Avenue Augusta, Maine 04330 Maine Sunday Telegram i 390 Congress Street Portland, Maine 04101 s
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