ML20062A987
| ML20062A987 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 10/12/1990 |
| From: | Feigenbaum T PUBLIC SERVICE CO. OF NEW HAMPSHIRE |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| Shared Package | |
| ML20062A991 | List: |
| References | |
| NYN-90184, NUDOCS 9010230283 | |
| Download: ML20062A987 (505) | |
Text
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y October 12, 1990 i- United States Nuclear Regulatory Commission Washington, DC 20555 Attention: Document Control Desk
Reference:
Facility Operating License NPF-86, Docket No. 50-443
Subject:
Guarantees of Payments of Deferred Premiums Gentlemen: o Pursuant to 10 CFR 140.21, New Hampshire Yankee (NHY), on behalf of the licensees named in the above referenced operating license, provides herewith, the evidence listed'below-
.; to demonstrate the collective ability of the licensees =to meet their obligation for payment of W deferred premiums:
a) Annual Report for 1989 (containing certified fiaancial statements) for the following: Public Service Company of New Hampshire I! A - The ' United Illuminating Company j Eastern Utilities Associates (for subsidiaries Montaup Electric Company and EUA Power Corporation) Massachusetts Municipal Wholesale Electric Company-m - Nortacast Utilities (for subsidiary Connecticut Light and Power e r Company) , F - Commonwealth Energy System (for subsidiary Canal Electric Company)
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1 New England Electric System (for subsidiary New England Power U- > Company) Taunton Municipal Lighting Plant Hudson Light and Power Department xnre y ,rMG c c) b) 1989 Report to the Rural Electrification Administration for the following: h gu f' New Hampshire Electric Cooperative, Inc.
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Vermont Electric Generation and Transmission Cooperative,- Inc. U v g.ve,3
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- New Hampshire Yankee Division of Public Service Company of New Hampshire I P.O. Box 300
- Seabrook, NH 03874
- Telephone (603) 474 9521 Ij h
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i l' United States Nuclear-Regulatory Commission October 12, 19901 Attention: Document Control Desk- Page two in-addition, th'e Agreement of Joint Ownership, Construction and Operation of New: Hampshire Nuclear _ Units, dated = as of May 1, 1973. as . amended, and specifically, the provisions of Paragraph 10.1s thereof as amended by the Eighteenth' Amendment thereto,'
- dated as of March 14,'1986, is incorporated by reference.
- The enclosed annual reports are also submitted pursuant to 10 CFR' 50.71(b).'
Should you have any questions regarding this matter,.please contact Mr. James M. Peschel, Regulatory Compliance Manager at (603) 474 9521, extension 3772. Very truly yours, f h(G ch' *- Ted C. Feigenbaum President and .j Chief Executive Officer i TCF/JES:dma Enclosure (s) , i cc: Mr. Thomas T. Martin Regional Administrator United States Nuclear Regulatory Commission Region 'I 475 Allendale Road l
- King _of Prussia, PA 19406 Mr. Noel Dudley.
NRC Senior Resident inspector _, P.O. Box 1149- 1 Seabrook, NH 03874
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L FI!;Mir! AL STATEMENTS AND p."L - 1 Q M.. .(sJ ..... . . . . . . .. .g ! !) l R . l i f- .j ' ^
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RENPT . iF IllDEPEtJDEt1T ' CERTIFIED PUBLIC ACCOU!1TA!1TS
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. FINAtlCI AL. STATEMENTS AND - '
. REPORT 0F INDEPENDENT CERTIFIED: PUBLIC ACCOUNTANTS
.TAUNTON MUNICIPAL LIGHTIt1G PLANT
. December >31,-19_89 and 1988 e
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REPORT-OF INDEPENDENT CERTIFIED PUBLIC. ACCOUNTANTS FINANCIAL: STATEMENTS 5 l BALANCE SHEETSL 1 6' STATEMENTS3 OF EARNINGS 7 STATEMENTS OF' RETAINED'-EARNINGS STATEMENTS OF, CASH FLOWS 8 1 9 q
'NOTEScTO' FINANCIAL' STATEMENTS
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SUPPLEMENTAL INFORMATION
. REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS.
- 1 71
.ON SUPPLEMENTAL INFORMATION 18 -'
UTILITY PLANT OPERATING' EXPENSES 20 1 l 1 4. 00 l l g
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. FAX 617 723 3640 .
n + 1 k g, f. s GrantThomton W Accountams and .. , a' - Managernent Consuusts The US Member Firm cf ~ . 4 Grant Thomt:n internat4cm Report of Indeoendent certi. fled public Accountants! > 1 Municipal Light Commission of the City of Taunton
= Taunton, Massachusetts ,
We have . audited ' the accompanying -balance sheets of. Taunton Municipal Lighting plant (a department of thec cityiof Taunton) as , of December 31, 1989 and 1988, and the' related
- statements of earnings, retained earnings, and cash flows for-the years then ended. These financial statements 'are the t esponsibility of the plant's management.- Our responsibility' is to express ~ an opinion on these financial statements based on our--audits.
We conducted our audits in accordance with. generally accepted auditing standards. Those standards require that - we-plan and' perform.the audit to obtain reasonable assurance about whether- the financial statements 'are free- of material misstatement. An pudit includes examining, -on a test basis, evidence supporting the amounts and disclosures' in the. financial statements. An audit- also includes assessing the accounting principles ,used and significant' estimates made by management, -as well :as evaluating the overall . financial statement' presentation. We believe our audits provide a
. reasonable basis for our opinion.
As . discussed in note F, Taunton Municipal Lighting plant records pension expense based on a f ormula determined by the City, whereas generally accepted accounting principles
. require the use of actuarial methods in determining annual pension expense. The effect on the financial statements of not
.using actuarial methods has-not been determined. In addition, certain disclosures required by the Governmental Accounting Standards Board relating to pensions have been omitted.
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statements o f _ .the accounting: policy discussed in the preceding-E ' paragraph,- the financialistatements -referred' to above, present-
. fairly ,in- all- ma terial . _-respects , the financial- position of Tauntoni Municipal Lighting! Plant as of December 31, 1989 and-
- 1988, and the' results' of Cits Loperations and-its cash flows--for
-the years then ended eins conformity , with generally accepted:
. accounting principles.- 3--
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-Taunton' Municipal L'ighting Plant' BALANCE SHEETS
(( , Dececher[31J, x ASSETS 1989 1988-Jr t UTILITT PLANT --AT COST $68,991,569-plant in-service $71,319,992 4* Less accumulated depreciation 40,020,296 37,382.310 (note A2) i
- Net utility plant-in service 31,299,696- 31,609,259-1 5,994,802 4;945,376 ConstructionLwork.in progress (note E)
Total utility plant 37,294,498 36',-554,635 11,503,660 8,075,613 i DEPRECIATION FUND-(notes A2~and B) 1,828,268 1,585,139 p
- SICK' LEAVE TRUST FUND (note AS) f H
DEFERRED-DEBIT Advance to Quebec Hyoro Project (note EJ 369,546 707,644
- CURRENT ASSETS 2,935,719 5,241,23:.
Cash.(note.B) . q Customer deposits (note B) Interest fund 27,098 42,15' 314,281
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Principal fund 304,063
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< Accounts receivable, less allowance-for doubtful accounts of $540,446 and $491,245, respectively: 4,408,697 3,664,590
. Materials and supplies inventory -3 1,906,305 1,545,349 (note A4) . _.133,141 Prepaid expenses 275.512.
b Total current assets 9.857,3.93. 10,975.,.514
$60,853,371 $57,899,593 .
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The accompanying notes are an integral part of these statements. 5 L.e~: Y~
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> RETAINED EARNINGS AND LIABILITIES 1989 1988 Retained earnings I Appropriated retained earni'ngs Loans repayment $13,512,000 $12,992,000 ;
Construction repayment 32,434 32,434
'l' 13,544,434 13,024,434, Unappropriated retained earnings 22.454.740 19.576.383 Total retained earnings 35,999,174 32,600,817 >
l l l_ LONG-TERM DEBT (note-C) Bonds payable 19,093,941 19,662,294 CURRENT LIABILITIES Accounts payable 2,220,080. 2,327,400 Customer deposits 304,063 314,288 , Current maturities of long-term debt (note C) 565,000 520,000 a Accrued liabilities Compensated absences 1,870,752 1,693,577 Interest 659,032 674,632 payroll 141.329 106.585 Total current liabilities 5.760.256 5.636.482 , i COMMITMENTS AND CONTINGENCIES :! (notes E and F) j i
$60,853.371 $57.899.593 l
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- Taunton Municipal Lighting Plant I
, STATEMENTS-OF EARNINGS.
l b Year ended December 31, i 4 j Qi 19JL9 _ f 19.S O_ UI . ! c _
- operating revenues-l' Sales of' electricity. $18,657,504- $ 18 ', 2 6 4 , 0 8 2 '
,RT{ : Commercial and-industrial- 12,019/172. 11,167.,= 5 5 0 J JV Residential 8,'446,884' 7,213,0904 I
* . Sales for resale-(note E) .1,514 A93 i Municipa1 _L llfuJjl 40,'460,442' 38,159,220 ' l 123u029: L11,R4 ;
~0therloperating' revenues 3.. 40,583,471- 38,'272,61.4; Total operating' revenues- -
,*! ' [0derating expenses 24,595,'480 22,7873384 ; .." p Powet production 1,504,564- i 1,648,732 Transmission and distribution - 1,021,427 1',018,'135 l
$, Customer accounting !
Administrative'and: general '4 , 2 2 1', 8 2 3 .i" 4,068,403-
.(notes A3 and! A5). 2. 7 2 3 JUL1 1 J LQ L 1d l
; Depreciation-(note A2)
,;p 7 Total operating expenses 34'.057.665' .1L141c1]L ,
>g j i, Earnings from operations 6.525.806 _62LlL_491~ ! u- .Other expense (income) ~ 1,548,426- 1~,585,306 j' Interest' expense on bonds 12,641 3,136-Other expense _(331,_111) _.LZDL D 92 K 3 , Interest income (note B)
;c Tota 1'other expense- 937.449 _L103Xd ;p
'?- tiet earnings - bef ore provision 4,823,436-5,588,357 l i],o .. ifor payment'in lieu of taxes iProvision for payment to the City of _2.tl.2JL,10SH 1,170:,_000' Taunton in 1ien of taxes (note D)
$ 3.398,357 $ 1 Q 13,,,,,dl h tlET EARNI11GS lt .
l I iff LO'Theaccompanyingnotesarean integral part of these statements. u i 6 l U- '. ~ . , . . . _. , _ __ _ _ - - - - _ - -
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( - STATEMENTSLOF-RETAINED-EARNINGS 4, . hY ear ended December-.31, 1989:and 1988-y , ;." '
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&ggropriated Retained Earnings [Unappropriat'ed
". ConstructLon. Retained t Loans:
si Repayment Reoaymenti Earninas Balance!'at December 31',.
- 1987m $12,512,000 $32,434' $ 17 , 0 0 2 , .9 4 77
,- 1 LT'ransfer from b' '
- unappropriated ~
, . retained earnings. i f o r . bcuul payment s 480,000 '(480,000)
LNet1 earnings 3,053,436 i Balance:at December 31, 1988 12,992,000. 32,434- 19,576,383-l l L
- Transferifrom l l unappropriated
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for bond" payments- $ 520,000 $' (520,000). ,:
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Net earnings 3,398.357 Balance at Decembet 31, i 1989' $13.512,00A -$32,434 $22.454,740 j i t j 1 3,;. I i The accompanying notes are an integral part of these statements. O 1 4 7 m
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STATEMENTS OF CASH FLOWS p Year; ended December 31,- 1989' '1988' I [ : Increase 1(Decrease) in Cash e . . . j i' -Cash flows from operat'ingl-aftivities: . Net earnings
$ 3,'398,357- -$ 3,053,'436 L
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-Adjustmentsito reconcile >n"t earnings 2 Q' to net" cash.provided'by operating activities:
Depreciation of: plant h assets 2,723,623. 2,609i217 Amortization of bond premium (3,353) (3,354)f j
- f. Change inLassets and liabilities: . .
Customer deposi1:' funds 25,284 (16,916); ' Accounts receivible (744,107) 632,661 p
? Inventory (360,956)' (116,350)l , > prepaid expense:tc (106,568) 146,45'6 I Accounts payableL (107,320) 471,056 ;
Customer' deposits. (10,225)- '21,850i F Accrued compensaned. absences 177,175 230,057 (15,600) ( 14 ~, 2 0 0 ) : i Accrued interest ~
. Accrued payrol'1 34.744 36.771 j Net cash provided by 5,011,054 7,050,688 l' operating activities l n)(, Cash flows'.from investing; activities:
L ; Additions to utility plant in service (3,463,486) (2,615,764) t
'(243,129) (233,139): i
' Increase in Sick Leave Trust' Fund (707.644)
Advance from (to) Quebec Hydro Project 338.098 k Net cash used'in (3,556,547) investing activities (3,368,517)' . c Cash flows from financing activities: L 'paymentlaf bond payable (520.000) (480.000.)' i Net increase in cash 1,122,537 3,014,141. I Cash at beginning of year 13.316.842 1L3A_2JQ1 Cashcat'end of year $14.439.379 $13,316.842 Cash at end of year is ref'lected on the H btlence sheet as follows: l b Depreciation fund $11,503,660 $ 8,075,611
' Cash 2.935.719 5.241.231 y
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$14.439.379 $13.316.842 LO f Eupplgmnptal Disclosure of Cash Flow Information:
U Cash paid during the year for interest $ 1.564.026 $ 1,599.506 j The accompanying notes are an integral part of these statements,
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Taunton MunicipalILighting. Plant NOTES'TO FINANCIAL STATEMENTS December-31, 1989 and 1988 NOTE A -
SUMMARY
-OF SIGNIFICANT ACCOUNTING POLICIES A' summary of Taunton Municipal Lighting Plant's (the- "P1 ant") ) significant- accounting policies consistently applied in t.he ! preparation of-the' accompanying.financia^1 statements follows.
- 1. Rates
< Rates. charged by the Plant are not subject to the approval 1 of- regulatory agencies. Pursuant to state laws, rates !
must be such that the resulting net earnings before payment to the City, less bond payments and interest income, do no': . exceed 8% of the cost of utility plant. The~ Plant's~ earnings, less bond payments, amounted to 6.2% and 6.0% of utility plant in 1989.and 1988, respectively. ; 2 -. Depreciation l Pursuant to the Department of Public Utilities , regulations, depreciation is calculated as a percentage of depreciable property at January 1. Depreciation is ; computed at 4% of the cost'of depreciable property. l 4 I Depreciation fund cash is used ' in 'accordance with state laws for replacements and additions to the electric plant ! in service.
- 3. Eension_ Elan ;
i Substantially all employees of the Plant are covered by a ! ip , contributory pension plan administered by the City of l 9 Taunton in conformity with State Retirement Board j "In requirements (see note F).
- 4. Inventory 1 Materials and supplies inventory is carried at cost, principally on the average cost method.
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- Taunton Municipa1 Slighting Plant i V ' NOTES TO FINANCIAL STATEMENTS - CONTINUED
- (f , l December 31', 1989 and 1988 NOTE A -
SUMMARY
OF SIGNIFICANT ACCOUNTING' POLICIES - Continued l
- 5. Sick Leave Trust The Plant established'a Sick Leav'e Trust (" Trust") in 19822 It is !
l for the financing of future sick leave payments.- the Plant's ' intention that- the Trust be ' f unded to- the ( extent of.the Plant's-sick leave liability, at which. time > the Trust will make all ' sick leave liability payments ~ , required under current Plant policies. The assets of the t Trust are shown in the financial statements of the' Plant to provide a ' more meaningful presentation, as the' assetThe _s ; of the Trust are for the sole benefit of the' Plant. shown at ' cost, which approximates ( f assets of the Trust, market, are invested in money- market funds, treasury. notes, mutual funds which invest ~in. government securities, common stock and a corporaten bond. Net investment income- ! for the - Trust of approximately. $91,000 and- > $108,000 in 1989 and 1988, respectively, isEreflected in the earnings. t statement as an offset to compensated absence expense, as fl these funds are restricted and can only be used for the. payment of sick' leave benefits. ig n
.! q NOTE B - CASH The - Plan't 's cash is deposited with the City of Taunton Treasurer who- commingles it with other city . funds. The City invests the L cash and credits the Plant each Jear. with interest earned on j: certain of the cash deposits. g a
' Cash deposited with the City of Taunton consists of the following !
- at December 31, 1989 1988 Non-interest earning pooled funds 1
i including restricted customer
= deposits of $186,161 and.$203,697, $.6,677,478 $ 9,374,975 Lji respectively 7.875% to 9.25% certificates of deposit 8,085,314 4,290,564 7,748 7,748. < j- . Savings accounts
' $14,770,540 $13,673,287 o l l l 10
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!Taunton Municipal Lighting plant 3p NOTES 1TO FINANCIAL STATEMENTS - CONTINUED g;f -December 31, 1989.and 1988 L
NOTE'B - CASH - Continued-
'i, 1989 1988
' Cash at December 31, is reflected on the balance sheets as'follows:
Depreciation fund $11,503,660 $ 8,075,6111 Cash- 2,935,719 5,241,231 u Customer deposit interest fund' 27,098 42,157-Customer deposit 1 principal fund 304.063 314,288~ j
$14,770.540 $13,673.287- I p
-NOTE C - LONG-TERM DEBT ,
Long-term debt at December 31, is comprised of the following: 1989 1988' Electric loan, Act of 1969 Interest ' rate - various rates i
' LO- from 7'.3% to 8% dated i February l'.1976.
, Interest l payable February 1 and l August-1.' Due serially from February 1, 1977'to .
. February 1, 2006 $19,605,000 $20,125,000 l
Unamortized premium 53,941 57,294 [ 19,658,941 .20,182,294 l Less current maturities 565,000 520,000 Total long-term debt $19.093.941 $19,662,294 Aggregate maturities of long-term debt at December 31, 1989, are as follows:
-1990 $ 565,000 3 1991 610,000 1 I
1992 660,000 3 1993 715,000 SL 1994- 775,000 i
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1995 - and thereafter 16,280,000 Bond premium 53,941 () $19,658,941
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- Taunton Municipal Lighting plant NOTES TO' fit 1ANCIAL STATEMENTS - CONTINUED-g\
I ib ' December 31, 1989 and 1988
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b ' NOTE D CONTRIBUTION TO Tile CITY OF TAUNTON IN LIEU OF TAXES l The plant. voluntarily contributed $2,190,000 and . $ 1,,77 0,000 in 1989 and 1988, respectively, to the City of Taunton. in lieu of taxes. All ' cont ributions to the City are voted by the Municipal Light Commission. NOTE E - COMMITMENTS AND CONTINGENCIES j Interconnection Aareement The City - of Taunton, acting by vote of its= Municipal Lighting plant Commission, entered into an agreement with Montaup Electric . Company. ("Montaup"), dated July 31, - 1970, as amended, ; i concerning interconnection of electrical operations, purchase and sale of kilowatt capacity, and construction by Taunton of a ; generating unit of approximately 110 megawatt capability. 'The agreement, Loriginally for the twelve (12) years ' following the ; commencement of operations of Unit No. 9 on ~ December 1, 1975, ! was amended and the term extended to October 31, 1988. 'Under M the. current informal interconnection agreement, the. City agrees. ! LV to exchange with Montaup Electric Company fifteen (15) megawatts l of Unit'No. 9 capacity for ten (10) megawatts of capacity from ' 1 l the Canal No. 2 generating unit, 50% of which is owned by Montaup. Since the expiration of this agreement, the Plant and 1 Montaup have continued this arrangement without a formal L agreement in' place. The plant credited to sales for resale > g
$1,241,807 and $2,908,872 of capacity and energy charges billed' L to Montaup-Electric Company in 1989 and 1988, respectively, for its-share-of power under the interconnection agreement. -
JQ. int 9Etelship The Plant is a 0.10034% joint owner of the Seabrook Units 1 i and 2, a nuclear generating station located in Seabrook, New Hampshire. Seabrook Unit 2 has been cancelled by the joint owners, and the plant wrote-off its investment in the Unit F L during 1987. The plant's investment in Seabrook Unit 1 at December 31, 1989 and 1988 was approximately $3,850,000 anii
$3,700,000,-respectively, which is included in construction work in progress. The Plant is not capitalizing interest costs on i Seabrook Unit 1. .Seabrook Unit 1 is currently- complete and l
awaiting regulatory approval for licensing before it can begin l. commercial operation. ID. () L L 12 j b
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'TauntonfMunicipal Lighting Plant "3..
'(;n) . NOTES TO FINANCIAL STATEMENTS - CONTINUED
- v December 31, 1989 and 1988 ;
NOTE E - COMMITMENTS AND CONTINGENCIES - Continued- ! j 'It - cannot be estimated when ' or if, Unit I will be put into The Plant's- i U'~ commercial operation due to licensing problems. latest estimates put its share of the cost for maintenance at approximately $100,000 for 1990. i In addition, Public- Service Company of New Hampshire, the lead participant in the ~Seabrook project, is operating under- (' Chapter 11 Bankruptcy. The Plant is unable to predict - whether this also will have any. effect on the ultimate commercial operation of the Unit. No allowance for possible loss in the Plant's investment in Seabrook I has been reflected ?in the ~ ! financial statements. Hydro-Ouebec Aareement The Plant has entered into.an agreement with the Massachusetts ' Company and other New England
- t. j Municipal Wholesale Electric
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. Utilities to support the operation of a transmission line to permit the interchange of electricity between such utilities and Hydro-Quebec Electric Corporation. In connection with this agreement, the Plant had advanced, in 1988, approximately
$800,000 toward development of the project. In February of 1989, approximately $450' 000 of this advance was returned after the project had obtained-financing. Additionally, the Plant is providing support for the project of approximately $100,000 per year.
l t NOTE F - PENSION PLANS The Plant contributes to the City of Taunton Empl'ayees' Retirement 1 System (" System"), a public employee retirement system that acts as the investment and administrative agent for the City. All ; Plant full-time employees participate in the System. /
" Instituted in 1937, the System is a member of the Massachusetts l Contributory System and is governed by Massachusetts General Laws !
Chapter - 32. Membership in the System is mandatory, immediately
- upon the commencement of employment for all permanent, full-time 1 employees, j l
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- Taunton Municipal Lighting Plant f@ .
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'; NOTES TO FINANCIAL STATEMENTS - CONTINUED ~ l
- x. g December 31,'.1989'and 1988 NOTE F - PENSION PLANS'- Continued l
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The System provides for retirement allowance benefits . up ' to a' 1 maximum of 80% of a member's highest three-year- average annual-
; rate of regular compensation. Benefit payments are based upon a member's age, length of creditable service, ' level. of compensation and group clr.ssification. Members joining the System after January 1, 1979 are subject to a cap of $30,000 on the level of compensation upon which their benefits are calculated..
Members of the. System become vested after 10 years of creditable ,7 service. A retirement allowance may.be received upon reaching age
. 65 or upon attaining twenty years of. service. The system also provides for early. retirement at age 55 if the participant (1):has a record of 10. years of creditable service, (2) was on the City's payroll on January 1, 1978, (3) voluntarily left City employment on or after that date, and (4) left accumulated annuity deductions in the fund. Active members contribute either 5, 7 or 8% of their gross regular compensation depending on the date upon which their
~
membership began, eA,ij '4 LThe System also provides death and disability benefits. amount referred to in the next paragraph. as. the " pension
-The
' benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be
'. ' payable in the future as a result of employee service to date.
The measure is intended to help users assess the funding status of. l the System on a going-concern basis, assess- progress .made in accumulating suf ficient ; assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present i value of credited projected benefits, and is independent of the funding method used to determine' contributions to the System.
.The System does not make a separate measurement of assets and the The pension benefit pension benefit obligation 1, for thefor 1989, plant.
the System as a whole,
. obligation at January determined through an actuarial valuation performed as of that available for 4 date, was $64,486,000. The System's net assets benefits on that date (valued at market) were $23,376,000, leaving an unfunded pension benefit obligation of $38,110,000.
The Plant's share of the unfunded pension benefit obligation has l ! not been determined. , n ii
- 3 14
[. l+. ,
7 ' 3 , Q Taunton Municipal Lighting Plant' > t b[MQ NOTES TOLFINANCIAL STATEMENTS - CONTINUED-
.g )f i
~__f
"^ December 31, 1989 and 1988 :
n . . .
.1 NOTE F - PENSION PLANS - Continued The System's funding-policy for' the participating- entities is~not n; actuarially determined. .The participating . entities. are required to contribute eachLfiscal year an amount approximating the; pension benefits (less certain interest credits) expected- to 'be ; paid!-
1 (" pay-as-you-go" method).. This- amount is !
.during determined the year in advanc's. _by the Public Employees Retirement ~ j Administration (PERA) andLis based in part on: the ' previous year's .i N ' benefit payout. No actuarial information is used.in determining d
.this amount.- The Commonwealth of Massachusetts currently .
L reimburses the ; System - on a quarterly basis for the portion of I
' benefit payments owing to cost-of-living incre'ases granted after- i the implementation of Proposition 2-1/2. .
of __ the f The effect on the accompanying financial -statements i
-departure . f rom generally. accepted accounting principles referred to in the previous paragraph _has not been determined'.
information System's Ten-year historical' trend showing the. : progress .in accumulating sufficient assets to pay _general- benefitspurpose when d L li D); due 'is presented in the City of Taunton's i financial statements, i In addition, the Plant has a separate Employees Retirement Trust for the ; financing of future _ pension payments. The Retirement p Trust;had-net assets of $8,689,806 and $6,925,143 at December 31, -
-1989 and 1988,- respectively. The Plant had pension expense of "p 1989 and 1988, which ' includes K
$ 1, 5 2 6, 3 87-' and $1,488,126 in 1 ,
contributions to the Retirement Trust of; $350,000 'for both 1989 and 1988. l. k i f C 15 i s
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! SUPPLEMENTAL INFORMATION i l!l
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l 1 Reoort of Independent Certified Public Accountants q
- on Sucolemental Information. j
- i
'Taunton Municipal Lighting plant- !
'Our audit was conducted for the purpose of f o rming :f an opinion on1the" basic financial- statements' take'n "as a whole-of Taunton- . Municipal., Lighting plant for the. yea'r ended: [
A December. 31, '.1989, . -which are r presented '. in the preceding i section ; ; inf ormation ' ' present'ed;
.O of (this= report. The Jsupplemental hereinaf teri is presented for purposes of additional analysis I
- and' is not a; required part of the basic financial str. cements. l
.Such information' has been subjected to the auditing ' procedures (
h applied in the audit.of the ; basic -' financial statementstand, in
'our opinion,fexcept.for the effect on the schedule of. operating J expenses of-not determining pension expenses by usingfactuarial, methods as explained in the third paragraph of our report on-page! 3 .and a s' discussed in note F to the basic financial statements, is fairly stated, in all material respects, in, ;
relation to the basic financial statements taken as a whole. { " Boston, Massachusetts February 26, 1990 O t l e -w ,. - s v., , - - - , ,
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.Taunton Municip51' Lighting Plant
~
, 'UTILITYJPLANT' l For-the' year! ended December 31~,-1989
}
l 4 Balance ' January.1, > 1989 Additions' Station production plant Land and land rights $ 524,080 $ -185,78h o Structures and improvements 7,062,509 274,994; Boiler plant equipment ~ 16,049,378 178,455!. Turbo generator units 14,303,330 Accessory electric group 59,668! 2,595,814 j Misce 1~1aneous power plant equipment 514,767 5,173: Total steam production plant 41,049,878 704,077) Other. production plant Fuel holders and accessories 512,234 23,904
-Generators' -83,407 4"
Accessory electric group 407,598 1 Total other production plant 1,003,239 3,904 Transmission plant l' Land and. land ~ rights 218,577' ' Clearing land right of'way 35,022 Structures and improvements . 133,392 Station equipment 2,380,487 Towers and fixtures 908,333 Poles and fixtures 2,114,814 4 Overhead conductor device 1,213,241 10,714 5 L Underground conduit-electric 3,104 Underground: conductor electric 6,113 Total transmission plant 7,013,083 10,714 , Distribution plant L Land.and land rights 153,668 Structures and improvements 661,917 1,657; 'ri ' . Station equipment 2,312,940 17,874 L Storage battery equipment 428 ; Poles,-towers and fixtures 2,654,624 250,611-Overhead conduit and device 2,900,354 363,530 Underground conduit 1,793,468 10,781-Underground conductor and development 1,789,128 110,030 L Line transformers 2,296,216 276,123 < Services 461,263
. Meters 84,440 ,
1,403,296 93,785 Station light and signal systems 1,137,473 In service 72,125 58,484 j 9,989 Total distribution plant 17,636,900 m i
, 18 1,277,304 i
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. a ern:re cyg ,r Accumulated -Net Book Balance-1 Depreciation Value 4 Transfers /- December 31, December 31, l 7etirements 1989 1989 December 31, d 198'9
t .
& $. 709,867 $ $ 709,867 7,337,503 4,769,280 !
2,568,223 P
- 16,227,833 10,108,869 .
14,362',998 6,118,964 1 a 7,841,143 6,521,855 1
- 2,595,814 2,212,874 519,940 382,940 244,829 275,111 41,753,955 25,176,995 16,576,960 m.. .
516,138 258,417 83,407 257,721 '! 42,425 40,982 ( 407,598 205,242 202,356 : 1,007,143 506,084
~\
501,059
) r
'(
218,577 35,022 218,577 133,392 35,022 57,992 75,400_ 1 2,380,487 1,027,512 4 908,333 1,352,975 436,975 471,358-l' 2,114,814 279,609 1,223,955 1,835,205 201,533 1,022,422 I 3,104 .1,402 6,113 1,702 l 2,404 3,709 7,023,797 2,007,427 5,016,370 153,668 663,574 153,668 123,385 540,189 > 2,330,814 1,858,933 ) 428 32 471,881 fj {' 2,905,235 396 e's 2,233,379 671,856 3,263,884 1,450,177 1,813,707 i 1,804,249 1,407,174 g3 1,899,158 397,075 ao 1,277,662 621,496 eq 2,572,339 1,107,855 545,703 1,464,484 C) 155,485 390,218 UT 1,497,081 996,361 l 1,195,957 500,720 TV i 540,813 82,114 3,014 655,144 79,100c[3 [ s 18,914,204 11,154,270 02 _ _ _ _ 3 7,759,934 !
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Taunton-Municihal.LightingPlant
-UTILITY;; PLANT --CONTINUED (p '
For;the yearJendedLDecember- 31, 1989 i
-Balance January 1, 1989- Additions u General plant I U
' Land and: land rights 37,835 Structures and improvements- $
842,732 14,117-
. Office furniture and equipment 306,986 Transportation equipment 922,862 41,940 L Stores equipment. 336,728.
? 7,116 2,102- ' ' Tools, shop and garage equipment- 21,305-Laboratory equipment ~ 5,134 Power operated equipment- 15,204 27,271 : Communication 1 equipment. 97,655 Miscellaneous equipment . 12,002 i 74,489 2,926: -1 Total general plant 2,353,455 415,015' h 1 Less contribution in aid of construction (64,986) Total utility-plant in service. L 68,991,569 2,411,014-Construction work in progress {? 4,945,376 3,855,030- 1
$73,936,945 $6,266,044 j'; - '
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.- -Balance Depreciation Net Book-Transfers / December 31, .value z.! L Retirements 1989 December 31, December 31, m _. 1989 i_ 1989
$*;N
~$ 37,835 iQ\, 856,849 $- 37,835 348,926 & 343,494 513,355
'- $ (82,591) 1,176,999 131,942 216,984~
h' ,#, 571,708
-9,218 605,291 26,439 2,117 7,101 @!c 15,204 13,932 12,507 e
27,337 14,486 22,806 _ 718 l~ 109,657- 48,794- 4,531
.? ,
77,415 60,863' 26,241 U" 51,174 (82,591) 2,685,879 1,175,520 m 1,510,359.- (64,986)
'i * (82,591) (64,986)
. A 71,319,992 40,020,296 31,299,696 W"
" '(2',805,604)
_5,994,802 _5,994,802 i ,-$/(2,888.195)
$_77,314,794 $_4 0 . 0 2 0, 2 9 6 ~
s, -
$37,294,498 i' $
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j % OPERATING? EXPENSES- , th For)the year ended. December'31, 1989
, ~3.; .1 ,
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'DSPOWER PRODUCTION. .
Operations. . f $~
.' :Supervisionfand} engineering
, . 437,673:
3M < ; < {i: s
~
' Fuel; ..
11,'7 03,103 ~ g" .. LLabor:and expenses 01,498,911;
. l
,"1 13',639,692:
4 Maintenance: '
, Supervision;and engineering i 254~,027-
, Structures. .'124,629' y
' Boiler plant. =1,258,875. ,
Electricjplantt .705,2521 l Misce'llaneous '87;655- I
** >?2,430,438:
' Purchased. power. 8,525',350n mc Total; power production :24,595.480 j M .. .
TRANSMISSION'AND DISTRIBUTION LOperation
"( c;Supervisioniand engineering
- Labor .
- 93,661 11,281-O' Supplies 1and expenses-- 114,584c l LMeter expenses-. 112,073 {
4 Cu' s tomer--installation-
'13,2334 {
'Miscel'laneous-
. =359,728- j' 604,560 . ;
1 Maintenance . !!
' Supervision and engineering l195,454' l
'LinesR- electric 613,739- i Street lighting and' signal systems 79,188 i
. Meters. 9,611- I
- Structures and equipment 3,843; i Line-transformers 41L680! -
j Stati'on: equipment 81,229 .i Miscellaneous 19,428' I c" 1,044,172 { 0 , 1 Total 1 transmission and distribution 1,648,732 f Forward 26,244,212 4 O I 20
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.TauntonlMunicipal Lighting. Plant OPERATING EXPENSES ~ .iCONTINUED
- YearJended December.- 31,- 1989:- "
Brought l? f o rwa rdi $26',244,'21'2 1 CUSTOMERrACCOUNTINT Meter reading 21 abor!and expenses 142,137c Accountingiandicollecting expenses -692,640-Uncollectible accounts -72~,000-
. Advertising expensel
- 114;650 i-
'Totalicustomer-accounting 1;021'427:
ADMINISTRATIVE:AND GENERALS 4 _ Operation?
. Administrative and' general-salaries 463,017, Office _suppliesfandJexpenses >
1196;940 Outside services employed' 165,566 Property insurance) 167',528-Injuries.andjdamages- 316,008
-Employee; pensions and benefits -2,294,'779-Miscellaneous: general expenses 174,399,
' Transportation expenses L155,001~
Regulatorylcommission. expense 4 . 7 4.Q - 3,937;978=
-- 1 Maintenance-General ~ plant: ~130 421 Total administrative and general '_4 068.403
' DEPRECIATION, 2.723.623-
$34'.057.665 O
21
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I;: e
;i 7
. UNITED STATES SECURITIES AND EXCH ANGE COMMISSION
*- WASHINGTON. D.C. 20549 y
FORM 10 K [ /) Annual Repon Pursuant To Section 13 or 15(d) of The Securities Exchange Act Of 1934 For the nacal year ended December 31,1989 [ ] Transition Report Pursuant To Section 13 or 15(d) of The Securities Exchange Act Of 1934 Fur the transition period from to Commission File Number 16392
'PUBLIC SERVICE C.OM.ep. P A.niNy .p.nr.h.N..EW nF HAMPSHIRE h or n NEW HAMPSHIRE 02 0181050 (Siew or Other Jurindecison (1.R.S. Ernployer of lacorparsuon or Ory.nizouan) Idenuruimn No.)
1000 ELM STREET, M ANCHESTER, NEW H AMPSHIRE 03105 (Address of Princtral Execuuve Offices) (Zer Code) Registrant's telephone number, including area code: 603 669 4000 Securities ngistered pursuant to Section 12(b) of the Act: Name of Each Exchange on Titic of Each Class Which Resirered Common Stock, $$ Par Value New York and Pacific Stock Exchanges Warrants to Purchase Common Stock Pacific Stock Exchange Preferred Stock, $25 Par Value,11% Dividend Series New York Stock Exchange Sinking Fund Prefened Stock, $25 Par Value,11.24% Dividend Series New York Stock Exchange Sinking Fund Preferred Stock,125 Par Value,15% Dividend Series New York Stock Exchange Sinking Fund Prefernd Stock, $25 Par Value,17% Dividend Senes New York Stock Exchange Sinking Fund Preferred Stock, $25 Par Value,15 44% Dividend Series New York Stock Exchange Sinking Fund Prefered Stock, $25 Par value,13% Dividend Senes New York Stock Exchange Sinking Fund Prefernd Stock, $25 Par Value,13.80% Dividend Series New York Stock Exchange General and Refundmg Mortgage Bonds, Series B 12% due 1999 New York Stock Exchange General and Refundmg Mongage Bonds, Series C 141/2% due 2000 New York Stock Exchange General and Refunding Mortgage Bonds, Scrits 111% due 1994 New York Stock Exchange Defernd interest Third Mortgage Bonds, Series A 13 3/4% due 1996 New York Stock Exchange 15 3/4% Debentures due 1988 New York Stock Exchange 14 3/8% Debentures due 1991 New York Stock Exchange 15% Debentures due 2003 New York Stock Exchange 171/2% Debentures due 2004 New York Stock Exchange Secuiities registered pursuant to Section 12(g)of the Act: Title of Class Preferred Stock, $100 Par Value,3.35% Dividend Series Preferred Stock, $100 Par Value,4.50% Dividend Series Convertible Preferred Stock, $100 Par Value,5.50% Dividend Series Preferred Stock, $100 Par Value,7.92% Dividend Series Sinking Fund Preferred Stock, $100 Par Value,7.64% Dividend Series Sinking Fund Prefernd Stock, $100 Par Value,9.00% Dividend Series Indicate by check mark whether the registrant (1) has filed all repons required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the precedmg 12 months (or for such shoner period that the registrant was required to file such seports), and (2) has been subject to such filing requinmeuts for the past 90 days. Yes./. No . The aggregate market value of the shares of Common Stock, $5 par value, of the Company held by non affiliates of the Company was $158,013,660 on March 31,1990. O Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.
.Qan Outstandme at March 31.19o0 Common Stock, $5 Par Value 42,154,548 Shares I
l a
f- PLE LIC SERVICE COMPANY OF NEW H AMPSIGRE y 1989 PORM lt K ANNUAL REPORT TABLE OF CONTENTS PARTI RABR ltem 1 Ausiness I hem 2 Properties 13 hem 3 Legal Proceedings 14 hem 4 Submission of Matters to a Vote of Security Holders 17 Item 4A Executive Officers of the Registrant 17 PART!! Item 5 Market for the Company's Common Equity and Related Security Holder Matters 18 Item 6 Selected Financial Data 19 Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 20 item 8 Financial Statements and Supplementary Data 27 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 52 PARTIll hem 10 Directors and Executive Officers of the Registrant 52 Item 11 Executive Compensation $$ I Item 12 Security Ownership of Certain Beneficial Owners and Management 58 Item 13 Certain Relationships and Related Transactions 59 L t ARTIV Item 14 Exhibits, Financial Steiement Schedules, and Repons on Form S.K $9 i O l i
I 4 PARTI ) l 1 Item 1. BUSINESS Introduction l Public Service Company of New Hampshise (the " Company")is the largest electric utility in New Hampshire, operating a single integrated system which supplies electricity to approaimately IF*ee quaners of the State's population. It &stributes and sells electricity at retail in approximately 200 cities and towns, inclu&ng Manchester, Nashua, Ponsmouth, Berlin, Keene,1.aconia, Dover and Rochester. It also sells electricity at wholesale to five other utilities and municipalities. The Company was incorporated in 1926 under the laws of the State of New Hampeture 1 1 l The Company's Bankruptcy i 1 The Filing. On January 28,1988, the Company filed a voluntary petition for reorganization under Chapter 11 of the l i United States Bankruptcy Code. { , l The finarcial difficulties that led to the Company's bankruptcy were attributable to a combination of several factors: i the magnitude of the Company's investment in the Seabrook Nuclear Generating Station Unit I ("Seabrook"), which represents more than half of the book value of the Company's assets on its financial statements; the delay in obtaining approval of the operation of Seabrook frem the Nucleat Regulatory Commission ("NRC"); and the prohibition under New I I
- Hampshire law of the realization by the Company of any cash income from or retum on that investment until Seabrook provides service to customers (the so called anti CWIP statute), in Jr.nuary 1988 the New Hampshire Supreme Court upheld the anti CWIP statute and prevented the New Hampshire Public Utilities Commission ("NHPUC") from considering the Company's request for emergency rates, wtuch were an essential element of the Company's efforts to achieve a financial restructuring outside of Chapter 11.
)
The Conduct of the Chapter 11 Case. Since the filing of the petition for reorganization under Chapter 11, the !' i Company has continued normal operations as a debtor in-possession under the protection and subject to the jurisdiction I of the Bankruptcy Coun, and subject to approval by that Coun of transactions not in the ordmary course. I l Two official committees represent the interests of the Compsny's unsecured creditors including debenture holders and ; trade creditors (the " Unsecured Creditors Committee") and the Company's equity security holders, including Preferred j and Common stockholders and Warrant holders (the " Equity Committee")in the reorganization case. The Bankruptcy
- Court granted the State of New Hampshire (" State") full party in interest status in the case. The State has actively represented the interests of ratepayers in the case and particularly in negotiations toward a reorganization plan.
l l The Plan of Reorganization The goal of a Chapter 11 reorganization case is a reorganization plan which resolves all claims against and equity ,
- interests in the reorganizing company Since shortly after the filing of the Chapter 1i case, the Company engaged in I I
negotiations with the State, the two Committees, and others to develop a plan that is supponed by all of the major parties in the case. During the same period, others have attempted to do the same,inclu&ng Northeast Utilities ("NU"), New England Electric System, and '!he United Illuminating Company, all of which sought to acquire or merge with the I Company under a reorganization plan. On December 13,1989, the Company announced its support for a plan (the " Plan") !' proposed by NU and also supported by the two Committees, the majonty in amount of holders of the Company's Third Mortgage Bonds (and obligations secured by those bonds), and the State. NU is a registered public utility hol&ng company l with operations in Connecticut and Massachusetu. On April 20,1990 the Bankruptcy Court confirmed the Plan. (See ]
- Confirmation of the Plan", below). l The Rate Plan. The Plan is based on an agreement (the " Rate Plan") regarding rates and power supply between Northeast Utilities Service Company ("NUSCO"), an NU subsidiary, on behalf of NU, and the Governor and the Attorney ,
(' General of the State of New Hampshire, on behalf of the State. The New Hampshire legislature approved the Rate Plan ( on December 14,1989, subject to NHPUC revicw. The Rate Plan, which permits a departure from the anti-CWIP statute,
-}
i provides for seven annual 5.5% increases in the Company's atall rates, commencing January 1,1990. The Arst increase i has alsady been implemented, and the amounts collected are currernly being held in escrow, subject to Anal apptoval and j effectiveness of the enerper described below, encept as to amounts to be collected from the later of Anal approval or July 1,1990 through the Effective Date of the Plar6. discussed below. The effectiveness of the Rate Plan is contingent upon a
]
NHPUC approval. The Rate Plan will be effective for Reorganized PSNH even if the merger with NU is not consummated. l The Plan. The Plan provides for the acquisition of the Company by NU in either a one step or two-step transaction. depending on when certain regulatory approvals for the acquisition are obtained, and the distribution of approximately $2.3 billion in cash and securities on the date (the "Elfective Date ") the Plan becomes effective and the Company emerges from reorganization as Reorganized PSNH. The Effective Date deadline specined in the Plan is August 1,1990, but the Plan permits the deadline to be calended by the agreement of NU and the two Committees. There are certain conditions to the Effective Date,includmg certain tax rulings, allowance in the reorganization case of not more than $900 million in unsecured claims against the Company, and certain regulatory approvals. The regulatory approvals required for the Plan to become effective include the NHPUC's approval of the Rate Plan and the issuance of securities of Reorganized PSNH, the approval (or waiver of jurisdiction by) the Conneetiet., Department of Public Utility Control with respect to securities issuance, and the approvals of certain transitional management arrangements, discussed below, by the Federal Energy Regulatory Commission ("FERC") and the United States Securities and Eachange Commission ( 'SEC"). The Company believes that these conditions can be met by the August I deadline or shortly j thereafter. The PERC and the SEC have already approved the transitional management arrangement, and the NHPUC has set a hearing schedule that would result in its rendering a decision by early to midsummer 1990. The Acquisition of the Company by NU. The Plan provides for NU's ultimate acquisition of the Company through l the Cornpany's merger with a wholly owned subsidiary of NU that is to be formed solely for the purpose of effectuating l the acquisition. At the time of the merger (or as soon thereafter as practicable) the Company's interest in Seabrook will be transferred to a newly formed subsidiary of NU, North Atlantic Energy Company ("NAEC"), whose sole asset will be the Company's Seabrook interest. NAEC will enter into a contract with Reorganized PSNH under which Reorganized PSNH will purchase the entire output of NAEC's interest in Seabrook for the life of the Seabrook license. Another NU subsidiary would be appointed as operator of Seabrook if required approvals of the Seabrook Joint Owners and the NRC are received. These transactions requite regulatory approvals of the FERC, the SEC, the NRC, and the public utility commissions of New Hampshire and Connecticut, and perhaps of Maine and Vermont, where the Company owns certain properties. Filings for approvals of the FERC and the SEC were made by NU in January 1990. Some sixty intervenors,includmg many New England utilities and all of the regulatory commissions and certain other officials of the New England states, have appeared in the FERC proceeding and have raised various issues in those proceedings, including certain antitrust and ! anticompetitive issues. A lesser number ofintervenors,some of whom are also intervenors in the FERC proceedings, have appeared in the SEC proceedmgs and raised issues similar in large part to those raised before FERC. If all re gulatory approv als for NU's acquisition of the Company are obtained by the Effeetive Date,then the acquisition will occur on the Effective Date (the one step transaction). Otherwise, the Company will emerge from reorganization as I a stand alone company, subject to a contractual obligation to be acquired by NU (the two-step transaction) upon the satisfaction of certain conditions. In the two-step transaction, holders of unsecured claims and of shares of the Company's existing Preferred and Common Stock will receive shares of Common Stock of Reorganized PSNH. When the acquisition l ultimately occurs, holders of shares of Common Stock of Reorganized PSNH will receive not less than $20 per share, in i cash, and NU will acquire all shares of Reorganized PSNH's Common Stock. B ased upon the current schedule in the FERC l proceeding,it appears that the acquisition of the Company will be accomplished as a two-step transaction. Distribution to Creditors and Shareholdees Under the Plan. Under the Plan, all holders of secured claims (other than two existing issues of pollution controi revenue bonds in the amounts of $ 100 million and $112.5 million which may be assumed and reinstated by Reorganized PSNH under the Plan) will receive cash in the full amount of their claims for i principal. interest and interesi on interest. Holders of unsecured claims will receive cash and,if the acquisition is a two step l transaction, shares of Common Stock of Reorganized PSNH. Holders of shares of existing Preferred and Common Stock l of the Company will receive notes that are contingent on Se abrook's achie ving certainlicensing and operational milestones and either cash and warrants to purchase shares of NU Common Stock,if the acquisition is a one step transaction, or shares l of Common Stock of Reorganized PSNH and certificates entitling the holder to receive warrants to purchase shares of NU Common Stock when (and if) the acquisition by NU occurs, if the acquisition is a two-step transaction. Holders of the i 2
4
, Company's outstanding Warrants (and any claims arising with respect to such Warrants) will receive in the aggregate
$1.3 million in cash. De total amount of cash and face amount of secunties (including the contingent notes) to te
. detributed to creditors and equity holders under the Plan is approximately $2.3 billion.
Ceanrenation of the Plan, On January 3,1990, the Bankruptcy Court formally approved a disclosun statement for the Plan, ordered the Plan, the disclosure statement, and ballots for the Plan transmitted to all of the Company's creditors and equity security holders, and set April 4,1990 as the date for commencing hearings on con 6nnation of the Plan.~ On April 20,1990, following six days of hearings, the Bankruptcy Court entered orders overruling all objections to ! conRrmation, An&ng all coo &tions to confirmation set forth either in the Bankruptcy Code or in the Plan satis 6ed, and connsming the Plan (the *Countmation Order"). Trenaitional Board of Directors and Management. De Con 6rmation Order provides, consistent with the provisions of the Plan itself, that upon confirmation, all of the duectors of the Company are deemed to have resigned, without further action by any person or entity, effective at 8:00 a.m. on April 30,1990. A tww,seven-member board will take of6ce then. Three menders were appointed by the Equity Committee, three members by the Unnecured Creditors Committee and one member o as jointly appointed by both Comminees. Each of the Creditors Committee appointees are also memters of the Creditors Committee; each of the Equity Committee appointees are also members of the Equity Committee. No current & rectors or officers are among the new Board appointees. De few Board mill serve until the acquisition is consummated. The new directors, their current affiliations, and their sources of appointment are: Name Malinian A na*- 5
- Joseph P. Tyrrell(Chairman) Former Officer of Boston Edison Joint Committee James K. Arthur Certified Reporting Co. Equity Committee Douglas A. Barry Monarch Life Insurance Co. Equity Committee Nowell A. Blake Mutual Benefit Life Insurance Co. Equity Committee Stephen Davis IBJ Schroder Bank & Trust Company Cre& tors Committee James D. Neidhart Equitable Capital Management Corp. Creditors Committee Anthony Ben Walsh Private Investor Cre& tors Committee ,
s ! In addition, a separaic order of the Bankruptcy Court, entered April 13,1990, provides, consistent with the provisions of the Plan itself, and subjeet to FERC and S EC apptovals (m hich have aiready been obtained I, that a Management Services 9- Agreement (the MSA) between the Company and NUSCO will take effect at 8:00 a.m. on April 30,1990, under which ! the Company will be managed by NUSCO from then until the acquisition is completed or is terminated, whichever occurs first. The Plan provides Gat the Chief Executive Officer and each Senior Vice President of the Company will te deemed to have resigned, without further action by any person or entity,60 days after April 30,1990, or sooner, at the option of the Company on 30 days notice at any time after confirmation, but in no event later than the acquisition date. The Plan, the Confirmation Order and the MS A contemplate that the new seven member board will seleet the officers of the Company l to serve until the acquisition. The Chief Executive Officer and each Senior Vice President have terxlered their resignations as officers, effective 8:00 a.m. on April 30,1990. NUSCO advised the Bankruptcy Court during the confirmation hearings that the new Chief Executive Officer of the Company would be leon E. Maglathin, Jr., a retired executive of Westem Massachusetts Electric Co. (an NU subsidiary) and that the new Secretary / Treasurer would be Bruce W Wiggett, who is currently Comptroller of the Company. These new officers, however, have not yet been appointed by the new board. In view of the total change in contrnt of the Company,its Board, and its management on April 30,1990, there can be ; no assurance that any of the Company's existing policies or practices or any aspect of its business operations will remain unchanged on or after April 30,1990. Risks. There can be no assurance that any of the regulatory approvals required for the Effective Date of the Plan or for the acquisition will be obtained within the deadlines established in the Plan. Opposition to the Rate Plan and to the acquisition has already teen filed by intervenors in the regulatory proceedings for approval of the Rate Plan and the acquisition. Unless all Effective Date conditions are satis 6ed,inclu&ng financing arrangements reasonably satisfactory I to NU, and all necessary regulatory approvals are obtained, the Plan will not become effective. Even if the Plan does become effective, if the requisite approvals for the acquisition by NU are not obtained, the acquisition will not occur. If the Plan does not become effective,it will be necessary for the Company to seek to achieve another reorganization plan. The Company cannot teasonably predict whether or when it will te possible to achieve such a plan or what the terms l u
i of any such plan enight be. If the Plan becomes effective but the acquisitionis not consummated, Reorganised PSNH would be operated as a stand.alone company under the applicable provisions of the Rate Plan. Speculethe Nature of the Company's Securities O Equity Interests. In view of the uncertainty over effectiveness of the Plan and the consummation of the acquisition contemplated under the Plan and over the outcome of the Chapter 11 reorganization case if the Plan and the acquisition were not consummated, the value of the Company's outstan&ng equity securities is highly speculative. The Company ceased paying &videads on its Common and Preferred Stock in 1984. The Plan, or any other reorganization plan con 6tmed i in the Chapter 1i case, will result in substantial alteration or elimination of some or all of the current rights of the holders of shares of Common and Preferred Stock. The dilution in equity interests that will be suffered by holders of shares of the Company's Comsnon and Preferred Stock in any reorganization,includmg under the Plan, is likely to be extensive. Unescured ladebtedness. The Company has not paid interest on its unsecured indebtedness since October 1987 and does not anticipate that it will resume interest payments before emergence from reorganization. Upon emergence,it is likely that the rights of holders of unsecured claims will be substantially altered, and the holders will likely receive cash and other accurities in satisfaction of their claims. If the Effective Date of the Plan does not occur, the Company cannot predict what form or amount of distribution the holders of unsecured claims will receive in the reorganization. Secured indebtedness. Cash flow concems could result in the suspension of the payment of interest on some or all of the Company's securedindebtedness. If the Etfective Date of the Plan does not occur,the Company cannot predict what form or amount of distribution the holders of secured claims will receive in the re 'rganization. (See cash flow concerns" belowl ! Cash flow Concerns Upon the Bling of the Chapter Ii case, the Company ceased making interest and principal payments on all of its _ indebtedness. The Company resumed interest payments on its First Mortgage Bonds and its General and Refurxhng Mortgage Bonds (and indebtedness secured by such bonds)in the spring of 1988 and has kept interest payments on those Bonds current since then. By not paying interest on its other indebtedness and by not reducing the principal on any of its indebtedness, the Company has generated sufficient funds intemally to satisfy its cash requirements. Assuming continued ! non-payment of such debt service, continued growth (about 1.65% annually) in the Company's level of sales, the i continuance of the Company's present rate structure, availability of the Company's $37.5 million short term crest, and l that there are no material ad&tions to the Company's projected operating and capital expenditures,line Company estimates 4 that it can satisfy its cash requirements through 1990. Nevertheless, the Company could enco Fer cash flow problems during the Chapter !I case if the Effective Date is delayed substantially beyond its current deadline. The Company's construction expen&tures for 1990 1994 are estimated at approximately $404 million,but could be significantly increased if the Company is required by environmentallaws to make additional expenditures, particularly in response to legislation regarding acid rain. The Plan requires that the Company recommence semi annual payments of interest on its Third Mortgage Bonds and indebtedness secured by its Third Mortgage Bonds as of August 1,1990,if the Effective Date has not then occurred. The semi annual amount of such payments is approximately $21 million, ltis doubtful that the Company could make such payments for an extended period. Because of the financial constraints under which the Company has been operating for the last several years, operating budgets and capital expenditures have been reduced to the point that, should any additional cash flow savings be required in the future to accommodate additional expenditures, the Company might be required to cease paying interest on some or all existing indebtedness or suffer reductions in the quality of utility service provided by the Company. Seabrook Nuclear Plant The Company is the principal owner of Seabrook, a nuclear. fueled ste am eleetne generating plant located in Seabrook, New Hampshire. At December 31,1989 the Company's investment in Seabrook represents more than half of the book value of the Company's total assets on its financial statements. 4 l l l
^
i 1 i I' Operasing I.Jeanne, On March 1,1990 the NRC ontered that a license for the full-power operation of Seabrook be issued, tan granted addisonal time for intervenor groups to seek mysew of the decision. The Massachusetts Attomey i
.h General's OfBoe, joined by two other long time intervenors in the licensing proceedings, asked the U.S. Circuit Coun of i g'(
Appeals for the District of Columbia to stay issuance of the Seabrook full power license. On March 14,1990 that Coort mfused to block the issuance of the license, and on March 15 the license was issued. ; 1 Following receipt of the full-power license, a 2 3 month stan up testing and power ascension program of the Seabrook ] plant has begun. his program involves a series of tests and reviews,includmg heat up of the reactor coolant system, reactor stan up, testing at vnrious power ascension levels, numerous staged self assessment nyiews, and NRC aview and public j hearing after attainmetu of 50% power level and production of eleetricity. Electric generation on a ngular, consistent basis would begin upon completion of the stan up and power ascension program, probably during the surnmer, assuming no unusual problems are encoutuered during the power ascension program. Other Seabrook Partienpants. Various other New England utilities (the " Joint Owners") participate in the ownership of Seabrook under a Joint Ownership Agreement. The ownership interests in Seabrook are as follows: Public Service Company of New Hampshire 35.56942 % ne United Illuminating Company 17.50000 EUA Power Corporation' 12.13240 l Massachusetts Municipal Wholesale Electric Co. I1.59340 , New England Power Company 9 95766 ) The Connecticut Light and Power Company 4.05985 '~ Canal Electric Company 3.52317 Montaup Electric Company
- 2.89989 l
New Hampshire Electric Cooperative,Inc. 2.17391 != 0.41259 Vermont Electric Gen. and Trans. Coop., Inc. Taunton Municipal Lighting Plant 0.10034 Hudson Light and Power Department 0.07737 100.00000 %
'Both these companies are subsidiaries of Eastem Utilities Associates.
1 4 in 1989, the Company recognized $50.8 million of expenditures associated with the Seabrook Comprehensive Set- I tiement. Under the settlement, the Company agreed to pay to or on behalf of one of the Joint Owners, the Massachusetts Municipal Wholesale Electric Company ("MMWEC"),its share of pre-operational funding commitments for Scabrook. MMWEC covenanted not to sue the Company for any alleged claims against the Company associated with Seabrook. MMWEC also agreed to a termination of an agreement under which the Company might have been required, upon operation of Seabrook, to purchase a share of MMWEC's Seabrook capacity and energy for a period of ten years at a cost substantially in excess of current market price. All Joint Owners and former Joint Owners, other than the New Hampshire Electric Cooperative ("NHEC"), Hudson Light and Power Department and Vermont Electric Generating and Transmis-l l sion Cooperative,Inc., representing approximately 2.5% of the ownershipinterests in Seabrook, also granted the Company l covenants not to sue on any claims, in exchange for cash payments or offsets to certain former Joint Owners and cenain other considerations. See Notes 2 and 3 of Notes to Financial Statements. Since February 1986, the Vermont Electric Generation and Transmission Cooperative, Inc., has discontinued payment of its share of Seabrook costs, as well as its payments as a member of MMWEC. Certain Joint Owners, including the l Company, have since then been providing funds against future payments due from the Vermont Cooperative to assun that , fuels are available to meet its ownership share of Seabrook costs, andit is anticipated that these arrangements will continue. l l' NHEC, a 2.17?91 % owner of Seabrook, acquind its interest in Seabrook from the Company pursuant to a series of i letter agreements. Pursuant to these asreements, NHEC and the Company entered into an agreement (the "NHEC Buyback l Contract") under which NHEC has the right to sell to the Company, over a ten year period, up to 250 megswatt years of Seabrook capacity and energy entitlement at NHEC's " full cost". NHEC's " full cost" is priced substantially in excess I ofits current market price. The Company has sou ght to rene gotiate the buyback arrangements. NHEC and NU have agreed to renegotiate various issues includmg termination of the NHEC Buyback Contract. Change in Seabrook Plant Accounting. In 1987, the Company determined that,when Seabrook became operational, ;
r political and competitive pressures would not permit the Company to recover the full recorded cost of its investment in accordancewithtra$tionalutilityratemakingpractices. Accordingly,theCompanychangeditsmethodof accountingior he navestment in Seabrook to eliminate APUDC from capitalized costs and to recognize capitalised interest and associated , income las effects. his change in method of accounting effectively restated the cost basis of Seabrook to eliminale the previously assumed eflects of regulation. he Company ceased capitalizing Seabrook costs effective December 31,1987. Accordingly, a toss of $212.0 million was recognized in 1987 associated with the estimated remaining costs to be incurred prior to a previously assumed operating date of January 1,1990, in 1989 the Company revised its assumed operating date to May 1,1990 and recorded - an ad&tional loss of $23 million to reflect the anticipated delay. $92.8 million and $109.5 million was charged to the , reserve during 1989 and 1988, respectively, including $36.0 million and $47.5 million of capitalized interest associated with the Seabrook investment. , Seabrook Impairment. At December 31,1989 the Company recognLed an impairment loss of $260 million on its Seabrook assets. Management of the Company concluded that it was appropriate to recognize an impairment loss l calculated as the difference between the book value of the Company's Seabrook assets at December 31,1989 and the value j 1 aasigned to the Seabrook assets and the reFulatory assets allowed under the Rate Plan. See item 7. " Management's Discussion and Analysis of Financial Condition and Results of Operations . Results of Operations". Decommissioning. Pursuant to a statute enacted in 1982, a New Hampshire State Nuclear Decommissioning Finance i Committee (the "NDF Committee") was established to determine the requirements for and methods of funding the costs associated with the decommissioning of nuclear generating facilities following commencement of operation. The NHPUC is authorized to permit the utilities owning an interest in the facilities and subject to its jurisdiction to recover from their customers on a per kilowatt hour basis the amounts paid into the fund for such purpose over a period of years. In February 1990, the Company filed a technical statement to set forth the computation and tanff provisions that the Company proposes to use to implement the nuckat decommissioning charge. The NDF Committee and the Joint Owners have agreed to fund decommissioning costs by pecing the recovery in a trust fund administered by a New Hampshire banking institution. Insurance. The Federal Price.. Anderson Act, as amended by the Price Anderson Amendments Act of 1987,provides, among other things, that the liability nr damages resulting from a nuclear incident would not eaceed the greater of $560 million or the amount of financial protxtion required of the licensee (presently about $7.8 billion). Under the Price. Anderson Act, prior to operation of a nuc tar reactor, a licensee is required to insure against this exposure by purchasing the maximum amount of liability insurano available from private sources (currently $160 million) and to maintain the insurance available under a mandatory indu. try. wide retrospective rating program. Under the latter program,each owner of an operating nuclear facility (of which then are presently 115) may be assessed a retrospective premium of up to a limit of $63 rnillion (which shall be adjusted for in'lation at least every five years) for each reactor owned in the event of any one nuclear incident occurring at any reactor in the United States, with a mammum assessment of $ 10 milhon per year per 1 reactor owned. Such owner may also be assessed additional retrospective premiums with respect to insurance purchased to cover property damage and decontamination costs resulting from certain events, but in no case will such additional premiums exceed 5% of the above-referenced retrospective premium. With respect to operating nuclear facilities of which it is a part owner, the Company would be obligated to pay its proportionate share of any such assessment. The Company's Service Area During 1989 the service area of the Company experienced slower economic growth in comparison to previt us years. ( onsequently, the Company experienced a smaller,3.3%, increase in prime sales (sales of electricity exclusive of unit or capacity power supply contracts) for 1989 versus an in:rease in prime sales of 5.7 % in 1988. Prime sales for 1987 d rcreased 2.8% reflecting the loss, effective October 1,1986, of two of the Company's wholesale customers, which previously accounted for 12% of the Company's total annual prime sales and approximately 8% ofits total annual revenues fr am prime sales. Continued growth in megawatt hour ("MWH") sales will be dependent on continued economic growdiin New Hampshire, weather, the competition from other energy sources and suppliers, and the price of electricity. ; O-6 l 1
.s Commerweties Program fN ' The Company has substantial capital requirements to satisfy ifit is to provide adequate service to its growing service area. The Company's construction program for the five year period 1990-1994, eaclusive of expenstures for Seabrook, is currently estimated to be approximately $287,900,000, The Company's share of Seabrook wlated pre-operational atart-up testing and power ascension espenditures and of other capital expenditures once full power operation has been achieved are estimated for the period to aggregate $116,200,000, based on Seabrook's assurned operational date for financial forecast purposes of May 1,1990. The Company anticipates that its obligstion to pay up to $30 million of MMWEC's share of Seabrook related pre operational expendstures under the Seabrook Comprehensive Settlement, which have been made from intemally generated funds, will be completed in April 1990, at which time MMWEC is obligated to resume such ' payments. Cenain Joint Owners have under consideration means to resolve the eventuality that MMWEC is unable on a temporary basis to resume payments. Set forth below are the Company's estimated expendatures in these categories for each of the years in the 1990-1994 period, assuming for these purposes a Seabrook operational date of May 1,1990: Seabrook Comprehensive Non-Seabrook Plant Seabrook Plant Comnany Total Settlement
$ 56,800,000 $ 31,800,000 $ 88,600,000 $ 9,800,000 1990 60,300,000 21,000,000 81.300,000 2,000,000 1991 51,300,000 19,600,000 70,900,000 2,000,000 1992 60,400,000 23,000,000 83,400,000 2,000,000 ,
1993-59,100,000 20,800,000 79,900,000 2,000,000 1994
$387,900,000 $116,200,000 ' $404,100,000 $17,800,000 Total
.. It is possible that substantial additional expenditures may be required to meet reFulatory and environmental requirements at Seabrook and the Company's other generating facilities. See " Regulation. Air Quality Control" below New England Power Pool Most utilities in New England, including the Company, are members of the New England Power Pool ("NEPOOL")
v pursuant to an agreement Ohe "NEPOOL Agreement") which has been in effect since 197 l. The NEPOOL Agreemen . provides for joint planning and coordmated construction, operation and maintenance of generation and transmission s facilities and also incorporates generating capacity reserve obligations and provisions regarding the use of major transmission lines and payment for such use. Substantially all planning, operational scheduling and dispatching of electric generating capacity for New England is done on a regional basis under the NEPOOL Agreement, At the t;me of the 19891990 NEPOOL winter peak, the New England utilities had about 23,407 megawatts ("MW") ofinstalled capacity and purchases to meet a peak of about l1 MW. The Company's capability responsibility under the NEPOOL Agreement involves carrying an allocated share of ai England capacity requirement which is dctermined for each period based on certain regional reliability criteria. Prior t Seabrook's operation, the Company's own generating facilities and participation in certain jointly-owned generating facilities are not adequate to meet its capability responsibility without additional short term capacity purchases. Consequently, the Company is required to purchase capacity and energy from other utility and non utility sources, W Seabrook,it is expected that the Company's capacity would be sufficient to meet its own load and its NEPOOL Agreement obligations until the early 1990's. i NEPOOL, on behalf of its participating members including the Company, has entered into an interconnection Agreement with Hydro-Quebec, a Canadian utility operating in the Province of Quebec, which provides for construct of an interconnection between the electrical systems of New England and Quebec. The first phase of this 450 kilovolt direct current interconnection was placed in service on October 1,1986. Those parties have also entered into an Energy Contract and an Energy Banking Agreement; the former obligates Hydro-Quebec to offer NEPOOL participants up to 33 mi!! ion MWH of surplus energy during an eleven year term commencing September 1,1986, and the latter provides for energy transfers b *een the two systems. NEPOOL has also entered into agreements for firm energy purchases from Hydro-([ Quebec of 7 million MWH per year for a ten-year period starting in 1990. While major licenses and approvals have been received and overall project engineering and construction has befun, the currently scheduled September 1,1990 oper date does not appear achievable. It is not certain when operation will in f7ct commence. 7
ft l Fuel Supply For 1989, the Company's Arm net output was derived 35.2% from oil,32.0% from coal,13.5% from nuclear. 4.5% from hydro and 14.8% from other sources. Oil. The Company utilites fuel oil primarily from domestic sources for much ofits power generation. As shown in the table balow, purchases of fuel oil are subject to significant pricing fluctuations. On August 1,1989, the Company contracted with a single supplier to meet its requirements until December 31,1990, but ntained some ability to make spot oil purchases. The average fuel oil storage capacity for the Company's oil-buming units in 1989 was approximately 28 days. Inventory levels vary substantially based upon how often the units are called upon to run, what load they an equired to maintain, and inquency of fuel oil deliveries which are made to assure adequate supply. Fuel oil is stored in a common tank farm for the Schiller and Newington stations. On December 31,1989, a 21 day supply was on hand. Coal. The Company has a supply agreement which covers up to 70% of Merrimack Station's coal requirements until January 31,1991. In addition, the Company has a supply agreement with another coal supplier for twelve months ending March 31,1990 and purchases the remainder of its coal supply in the spot market. Merrimack Station consumes approd-mately 1,000,000 tons of coal per year. On December 31,1989, a 68 day supply was on hand. For the first six months of 1989, Schiller Units 4,5 and 6. the Company's existing dual fuel (coal and oil) fired units, utilized oil as the primary fuel. During 1989, the Company has bumed a variety of test coals in the units. The Company has solicited bids and continues to analyze these bids for price and availability and expects to sign more than one supply agreement for coalin 1990 and the following years. Since the three Schiller units are capatile of buming both coal and fuel oil, the units are dispatched on the most economical fuelin accordance with the provision of the NEPOOL Agreement. On December 31,1989, a 62 day supply of coal was on hand for the Schiller units. The Company's approximate average costs of oil and coal for 1985 through 1989 were as follows: Oil Per Oil Per Coal Per Coal Per Ramd Million BTU IDD Million BTU s 19 85.. .... .. $25.20 $3.91 $58.13 $2.15 19 86... .. . .. 13.49 2.10 59.18 2.15 1987.. ... 17.16 2.65 55.32 2.05 I 19 8 8..... . .. 12.52 1.93 50.95 1.92 ; I 989......... . 14.67 2.26 46.74 1.76 Nuclear. The Joint Owners have contracted for the nuclear fuel cycle materials and services required to commence operation of Seabrook and to meet its requinments through twelve full months of operadon and at least two subsequent annual reloads. Contracts for segments of the nuclear fuel cycle will be required subsequently, and their availability, prices and terms cannot be predicted. l 1 As required by tha Nuclear Waste Policy Act of 1982, the Joint Owners entered into a contract with the United States Department of Energy (" DOE") for the transport and disposal of Seabrook spent fuel at a national nuclear waste repository. Under the Act, a natitcal repository for nuclear waste at Yucca Mountain Nevada was andeipated to be in operation by 2003. The DOE recently extended the e artiest possible operation date to 2010 citing re fusals by the state of Nevada to issue environmental permits to commence site studies at Yucca Mountain. Because of contingencies in the Act, the Company cannot p: edict whether the lederal govemment will be able to provide interim storage or permanent disposal repositories for spent fuel and/or high level radioactive waste materials. Seabrook will have enough on-site storage to accommodate all spent fuel accumulated for at least ten years after commencing operation. The Company has been advised by the companies operating the other nuclear generating stations in which the Company has an intsest that they have contracted for certain segments of the nuclear fuel cycle through various dates. The Company has further been advised that these operating nuclear generating stations have or will have storage capacity to meet the spent fuel storage needs of the units through various dates into the late 1990's. 8 l
-___a
1 ., - l l Joisd Projects (3 Q ne Company is, through stock ownership, part owner with other New England electric utilities of four nuclear gen-ersting companies. De Company owns a 7% interest in Yankee Atomic Electric Company, a 5% interest in Connecticut l Yankee Atomic Power Company, a $% interest in Maine Yankee Atomic Power Company and a 4% interest in Vermont Yankee Nuclear Power Corporation, each of which owns an operating nuclear generating plant with present net capabdities ; of 173 MW,591 MW,865 MW and 520 MW, respectively. The stockholders of each of the four nuclear generating i companies m entitled to the output of the plant in proportion to their respective ownership shares and are obligated to pay ; for such output their proportionate shares of the generating company's operating expenses and returns on invested capital. - They are also obligated to pay, when called upon by the individual generating company, their proportionate shares of such generating company's capital requirements not provided from outside financing. In addition to the joint ownership of Seabrook which entitles the Company to 409.05 MW of Seabrook capacity and related energy upon its operation (see "Seabrook Nuclear Plant" above), the Company is participating on a tenancy in-common basis with other New England utilities in toe ownership of Mills.one Unit 3 in Connecticut. The Company's ownership interest of 2.8475% entitles it to 32.9 MW of that unit's capacity. The Company also owns a smallinterest in Unit No. 4 of the Wyman Plant, located in the State of Maine and jointly owned with other utilities. Competition Large rate increases to allow a recovery of, and retum on, all of the Compmy's investment in Seabrook could erode the Company's competitive position in its service area. If the Company's rates increase greatly, other sources of supply might become available at costs less e spensive than the Company's power, and a number of the Company's large customers may use such other sources rather than purchase the Company's power. Additionally, the higher the rate increases, the greater the likelihood that certain municipalities would consider the feasibility of acquiring the Company's distribution facilities located within the municipality, and operating them as a municipal electric department. in 1989 the Company hired outside economic consultants, Bower Rohr & Associates, which completed a study that , indicated that a one time nominal rate increase that averages 31 % and varies among customer classes with annualincreases thereafter at the rate ofinflation is affordable, that is, both bearable and feasible. The Bower Rohr & Associates study was (' in part based upon a review and assessment of related studies done by Company personnel and other consultants, which reached similar conclusions. De studies included examinations of the price elasticity of demand for electric energy, the price and availability of alternative sources of energy, the possibihty of industrial customer relocation or use of cogeneration facilities, and the , extent to which higher electric rates might result in the establishment of municipal electric departments to serve their residents directly. Also considered were the effects that higher electric rates might have on the economic and social well being of customers. ) ne conclusions reached in the studies were that while there would be some social and economic effects and some l loss of sales to the Company from the increases under review, the higher rates would not cause undue social disruption or ! economic hardship, or significant shnnkage in size of the Company as an energy provider. De level of rate increases considered by these studies is substantially higher than the increases under the Rate Plan. Small Power Producers. In 1978, the New Hampshire 1.cgislature enacted the Limited Electrical Energy Producers ! Act ("LEEPA") to provide for small scale and diversified sources of supplemental power. Shortly thereafter, the United ) States Congass enacted a similar statute, entitled the Public Utility Regulatory Policies Act ("PURPA") which, among other things, required the FERC to promulgate rules to encourage the development of attemate energy resources by re-quiring electric utilities to purchase electric energy from qualifying facilities at just, reasonable and non-discriminatory rates. Under LEEPA and PURPA and the regulations issued thereunder, an electric utility must purchase the entire electrical l outputs of power from qualifying facilities ("Small Power Producers") located within its franchise area at the utility's l ( avoided cost. In July 1984, acting pursuant to its authority under LEEPA and PURPA, the NHPUC established the long-1 9
i term rates at which the Company was required to purchase power from Small Power Producers. Since issoing its 1984 Order, the NHPUC has on three occasions either updated the rates or changed the methodology for determining the rates ; at which the Company must purchase power from Small Power Producers. These rate updates had no effect on the high long term rates approved previously by the NHPUC. Because the Company's actual and projected avoided costs have . declined substantially in recent years, due largely to a reduction in fossil fuel costs, the price that the Company pays for power it purchases under NHPUC long term rate orders and pivately negotiated contracts is, therefore, well in excess of its avoided costs. After numerous requests by the Company, the NHPUC issued an order in April,1988 which laid the groundwork for institution of a new policy encouraging a retum to privately negotiated arrangements between the Company and Small Power Producers. As a result, the Company released in July,1989 its first Request for Power Supply Proposals seeking to obtain 50 megewatts of economic and reliable power from small and independent power producers, cogenerators, other non-utility and utility sources. Proposals were received in December 1989 and on February 5,1990 the respondents were noti 6ed that, although the impending acquisitiot of the Company by NU raises significant issues as to further need for and cost of power, the Company intends to proceed w th its evaluation of proposals. The sespondents were then asked to signify , whether they desired to have the proposal evalu tied further, in light of a potential termination of the process. As of Decemher 31,1989, the Company was purchasing the entire generation (l 98 megawatts) from 75 existing Small Power Producers. During 1989, the Company synt over $121 million for 1,132,000 megawatt hours of power from these facilities. Also, approximately 63 megawatts ofload is being offset by 25 customers of the Company who have installed generation units primarily to meet their interual needs but may sell excess power at short-term rates on a when available basis. Although numerous additional projects have been discussed with the Company, most of these were preliminary in nature and will most likely not be developed. Under the Plan, NU will undertake its best efforts to renegotiate existing power purchase arrangements between the ' Company and thirteen of the largest Small Power Producers currently operating under the Small Power Producer rate orders. The State has agreed to support NU in these efforts. NU does not seek rejection under the bankruptcy laws of any of the arrangements currently in place with the Small Power Producers. Regulation O l General. During the perJency of bankruptcy proceedings the Company and its properties and operations are subject to the jurisdiction of the Bankruptcy Court. Subject to the foregoing, the Company, as to retail rates, securities issues, and various other matters,is subject to the regulatory authority of the NHPUC. The Connecticut Department of Public Utility Control has limitedjurisdiction over the Company based on the Company's ownership as a tenant in-common of a portion of Millstone Unit 3,(see " Joint Projects" above). Based upon the Company's ownership of generating and transmission facilities in Maine and transmission facilities in Vermont, the Company is subjeet to limited re gulatory jurisdiction in those states. The Company is also subject, as to some phases of its business, including accounts, certain rates, and licensing of its hydroelectric i generating plants, to the jurisdiction of the FERC under the Federal Power Act. The various nuclear generating units in which the Company has an ownership interest are subject in their construction and operation to the broad regulatory l l jurisd.ction of the NRC under the Atomic Energy Act of 1954, particularly in regard to public health, safety, environmental and antitrust matters. Environmental Matters The Company is subject to regulation with regard to air and water quality and other environmental considerations by various federal, state and local authorities. The Company cannot forecast the effect of all such regulations upon its generating, transmission and other facilities, or its operations. l The application of federal, state and local standards to protect the environment, including but not limited to those hereinafter described, involves or may involve review, certification or issuance of permits by various federal, state and local authorities. Such standards, particularly in regard to emissions into the air and water, thermal mixing zones and water temperature variations, may halt, limit or prevent operations, or require substantial investments in new equipment, at eximing generating plants. They may also require substantial investments which are not included in the estimated construction expenditures set forth under " Construction Program" above. 10
. i Air Quality Control. Pursuant to the Federal Clean Air Act of 1970, as amended, the Siate of New Hampshire acting l_ Q through the New Hampshire Department of Environmental Services . Air Resources Division ("ARD") has adopted
~ G1 - '
regulations containing standards limiting emissions of particulates, sulfur oxides and niimpen oxides which are generally ' designed to achieve and maintain federal primary ambient air quality standards. T he Company believes that its fossil fuel
- l. generating units are being operated in compliance with ARD's regulations.
Pursuant to the 1977 amendments to the Clean Air Act, ARD has proposed lists showing those areas of New Hampshire which had attained or failed to attain national ambient air quality standards, and revised the state implementation plan, t which the Environmental Protection Agency (" EPA") has accepted.' It does not appear that the revised state implemen-tation plan will require the Company either to modify operations at any ofits fossil fuel generating plants or to expend funds for additional air pollution control equipment unless the current State plans for attainment in non attainment areas prove ' to be inadequate, j 1he New Hampshire Acid Rain Control Act requires significant reductions in sulfur dioxide emissions from all major ; sources, beginning January 1,1991. A low sulfur coal test program is currently being conducted at Merrimack Station to determine the availability of coals that would enable the Company to meet the requirements of this Act without the l installation of air pollution control equipment. It appears that such coals are available. In the event that they are not, the , Company will have to install air pollution control equipment or take action to effect compliance. The capital cost of such equipment is estimated to be approximately $165 million after 1990 but befnre 1995, None of such cost is included in the p construction expenditures set forth under " Construction Program" above. The installation of such equipment would l increase operating costs and reduce the net capability of the units. Permits issued by ARD to operate the two coal fired units at Merrimack Station contain limits on the opacity of smokestack discharges and on particulate emissions. The Company is currently operating Merrimack Unit 1 in conformance with an interim compliance schedule as revised and approved by ARD to teflect the impact of the Acid Rain Control Act referred to above. In accordance with this schedule, the Company has installed new pollution control equipment on Merrimack Urtit I for reduction of particulate emissions. This equipment became operational following the unit's November 1989 scheduled annual ontage. The Company is awaiting confirmation from ARD that the requirements O* in the compliance schedule have been met.
,, The Company's operating permit for Merrimack Unit 2 was reissued by ARD in 1987 containing several new t , conditions, one of which for the first time correlated particulate emission discharge measurements to violations of an opacity limit that is more stringent than required by ARD regulations. While the Company successfully appealed this condition on technical grounds, the stringent opacity limit continues to be used as an indicator of stack emissions. Future failures to meet the opacity limit may be used at the ARD's dismtion 4 require additional EPA Method Five stack testing.
In December 1988 the ARD issued an administrative order which directed the Companyto prepare and submit to ARD a compliance plan for certain boilers at Newington Station to assure that further violations of the opacity limits established by ARD's regulations and by the existing permit for the station do not occur. On March ! 6,1989 the Company submitted a proposed corapliance plan which detailed changes in boiler firing procedures, increased opxity monitoring audits and revised exceedence notification procedures. On August 7,1989 the ARD accepted the revised compliance plan as adequate to satisfy the requirements of the administrative order and has reissued the permit to operate containing certain conditions which remain the subject of negotiations between the Company and the ARD. Water Quality Control. The Company has received from the EPA, or from the Maine Department of Environmental Protection in the case of one generating station located in the State of Maine, all permits required under the Federal Water Pollution Control Act, as amended, for discharges of thermal and other effluents from its generating stations. Such permits have varying expiration dates and the Company has made and expects to make appropriate and timely applications for J renewal. The Company is required to report periodically permit noncompliances. l On July 27,1989, the New Hampshire Department of Enviromental Services (" DES") notified the Company as to certain concerns which DES had with respect to Merrimack Station's waste water handling system and requested the Company to address such concerns at the time of the reissuance of the station's discharge permit later in 1990. The f] Company believes that additional site work will be required at a cost of $300,000 in 1991 to isolate the wetlands from the l () station's waste water handling system. This construction cost is not included in the construction costs detailed in 11
t
" Construction Program" above.
he EPA's effluent limitations guidelines and standards for steam electric power plants impone rigorous limitations '[i upon the industry. A United States Court of Appeals has remanded the guidelines and standants to the EPA for reconsideration. With the eaception of occasional noncompliance noted above, the Company believes it is in compliance with all applicable guidelines and effluent limits specified in the Company's existing permits. The Company has an ongoing requirement in the discharge permit for Merrimack Station to monitor the effect of the station's operation on the Merrimack River. The Company has thus far been able to show as required by the permit that Menimack Station's present once through cooling system does not interfere with resident fish in the affected portion of the Merrimack River. The permit requires that additional biological studies be performed by the Company at such times as significant numbers of migratory fish are restored to the Mernmack River for the purpose of showing as required by the permit that the present cooling system does not imerfere with migratory fish. Resource Conservation and Recovery Act. Pursuant to the Resource Conservation and Recovery Act of 1976, as amended, the EPA has issued regulations relative to the generation, transportation and disposal of cenain wastes as well as underground storage tanks. In addition, the DES - Waste Management Division has similar regulations which have , received final approval from the EPA.The Company has reviewed the application of these regulations to its operations and ' telieves it is in compliance with the EPA and New Hampshire regulations applicable to its operations. Toxic Substances Contrel Act. Pursuant to the Toxic Substances Controf Act of 1977,the EPA has issued tegulatiocs regarding the manner in which polychlorinated biphenyls ("PCB") are to be handled, including those found in certain types of transformers and capacitors. The Company has reviewed the applicability of these regulations to its operations and has established programs to meet the compliance schedules. The required phase out of PCB capacitors was completed prior to the October 1,1988 deadline. De Company believes that it will be able to meet the EPA regulations and 1 compliance deadline of October 1,1990 with respect to PCB transformers located in or near commercial buildings. Comprehensive Environmental Response, Compensation, and Liability Act. Pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act (" CERCLA") of 1980, as amended, the Company is required to identify sites from which releases of hazardous substances into the environment might occur or have occurred, to report releases (including spills) of hazardous substances, and to participate in the cleanup of such sites or reteases. The Superfund Amendments and Reauthorir.ation Act of 1986 significantly expands CERCLA, including an emergency planning and Community Right To-Know program, The Company has reviewed the application of these regulations to its operations l and has achieved and maintained compliance. The Company has been notified that it is a potential responsible party under CERCLA at four sites in New Hampshire and under Massachusetts law for a site in Lowell, Massachusetts, investigations conducted by the Company currently indicate that the Company's exposure Io possible liability for clean up at any of these sites would most likely not be significant. The Company understands that the EPA has one of the New Hampshire sites under more detailed review and that upon reciept of additional information from the EPA a further review of the potential , of Company liability will be undertaken. ] Other Er.vironmental Expenditures. The operation of Seabrook, including compliance with emironmental consideratior s, is also subject to regulation by the NRC and the EPA. The Company believes that all required permits have been obtairw.d and are in full force and effect pending commencement of full power operation. At December 31,1989, the Compa iy's share of expenditu res t'or environmental protection facilities at Seabrook amounted to apprnximately $158 million, the najor portion of which was for facilities to reduce the thermal effect of the discharge of the Seabrook condenser cooling system. Employees, Salaries and Wages As of December 31,1989 the Company had approximately 2,750 employees, of whom 882 were employed by NHY. Due to budgetary constramts, limitations have been instituted on the hiring of additional employees. 1 Approximately six hundred of the Company's employees (none of whom are err. ployed by NHY) are represented by two unions with which the Company has contracts expiring on May 31,1991. Contract negotiations with both unions were completed in May 1989 and the new contract went into effect June 1,1989. The new agreement calls for a 4.5% and 5.0% 12
L I wage incmase over the two year hie of the agreement, with no major changes to working conditions. Salary incwanes are gramed on a comparable basis to non-union employees. ; (o) NU and the Company have agreed upon and the Bankruptcy Court has approved s' program which provides that for all employees, other than (i) menior of6cers,(ii) those employees, including certain of6cers, covered by the Company's Special Severance Pay Plan,(see hemi1. " Executive Compensation. Special Severance Pay Plan"),(iii) employees of , NHY, or (iv) employees covered by a collective bargaining agreement, there shall be no layoffs, salary or bene 64 ; reductions, involuntary transfers or relocations or involuntary terminations (other than for cause) for a period of 18 months after confirmation of the Plan. Involuntary termination (other than for cause) within 12 months thereafter may only occur ' after 60 days notice and will entitle the terminated employee to severance pay in an amount based upon salary grade, current salary level, and length of service with certain minimum payments depending upon salary grade and a maximum of three months of continued health insurance beneSts.
~ Wholesale Cnatenwrs j NHEC, which has a 2.17391% ownership interest in Seabrook, cunently purchases, as a wholesale customer, most ofits electricity from the Company and is subject to regulation by the NHPUC as a public utility. In addition to sales to ,
NHEC, the Company sells power at wholesale to four other municipal and electric utilities. For the year ended December ' 31,1989, sales of power to the Company's wholesale customers accounted for approximately 9.4% of the Company's total
- prime sales and 6.3% of the Company's total revenues from prime sales; almost all of these sales are to NHEC. With
. , Seabrook becoming operational, the amount of power purchased by NHEC from the Company and the revenues derived therefrom are not expected to increase and may decrease in the future.
4 Seasonal Nature of Business Although the number of kilowatt hours of electricity sold by the Company in its territory has historically been g somewhat less in the spring and fall than during the winter and summer, the Company's electric revenues and operating i income are dependent on a variety of other factors which are not necessarily seasonal, including contract sales of system and unit power to other electric companies, changes in the Company's rates and charges, the extent and nature of e transactions involving NEPOOL and general economic conditions. r item 2. PROPERTIES The electric properties of the Company form a single integrated system including transmission facilities which are part of the New England wide transmission grid. The generation and transmission systems of the major New England utilities, includmg the Company, are operated as if they were a single system. The Company has 1,220 MW ofits own generating ' capacity and 99 MW from its participations in the four nuclear generating companies. The Company also has various contracts for purchased capacity, in January 1989, the Company experienced its maximum one-hour prime peak load of 1,441 net MW. See item 1. Business "New England Power Pool". The Company has a two unit coal fired 479 MW electric generating station (Merrimack Station), from one unit of which the Company has agreed to sell to another utility 100 MW on a single unit basis through April 1998, one oil fired 422 MW electric generating station (Newington Station) and Schiller Station (179 MW), three units of which have the capability of burning either oil or coal and one oil. fired unit. In addition to its 409 MW interest in Seabrook, the Company also has other generating units with an aggregate effective capability of 239.4 MW as follows: hydroelectric (68 MW), combustion turbine (116 MW), diesel (3 MW),its share (19.5 MW) of Wyman Unit 4, a 620 MW oil fired generating plant jointly owned with other utilities and located in the State of Maine, and its share (32.9 MW) of Millstone Unit 3, a 1,150 MW nuclear fueled steam-electric generating plant jointly owned with other utilities and located in the State of Connecticut. On December 31,1989 the Company had approximately 1,788 pole. miles of transmission lines, !1,092 pole-miles of ( distribution lines, and 217 transmission and distribution substations L ving an aggregate capacity of 5,726.083 KVA. I 't
- l The Company owns office buildings in Manchester and Portamouth, New Hampshire. It rents space in an office building in Manchester for its principal of 6ces under a 30 yeat lease expiring in 2002. Annual base antals under this lease are approaimately 51.5 million subject to annual escalation, in 1989 the Company paid approximately $2.3 million. The ,
' Company also owns other structures used as service buildmgs, storehouses and garages, and leases space for offices and other purposes at yarious locations in its service area. ,
The reat and tangible properties of the Company (excluchng fuel) are presently subject to the lien of the indenture for the First Mortgage Bonds and the indenture for the General and Refunding Mortgage Bonds. In addition, substantially all of the Company's real and tangible property located in New Hampshire is presently subject to the lien of the indenture for the Third Mortgage Bonds. Upon effectiveness of the Plan,it is expected that these liens will be discharged and will be replaced by other liens securing the first mortgage bonds and other debt to be issued by Reorganized PSNH. The principal properties of the Company are held by it in fee and are free from other encumbrances, subject to minor exceptions which do not substantially impair the usefulness to the Company of such properties. *lhe transmis6 ion and distribution facilities of the Company are with minor exceptions either located on land owned in fee or pursuant to easements, or with respect to those in or over public highways or public waters are so located pursuant to adequate statutory or regulatory authority, subject to stinor defects, which do not, however, threaten to impair the right of the Company to maintain and operate its poles, wires and conduits. Item 3, LEGAL PROCEEDINGS The Company is operating its business as a debtor in possession under the jurisdiction of the Bankruptcy Court as described above under hem 1. Business. Consequently, the Company is required to seek Bankruptcy Court approval for many business decisions and transactions involving the Company, and the Company's requests for such approval have frequently been coatested by one or both of the Committees or other parties in the Chapter 1i case,incicding the State of New Hampshire. Rates l , New Hampshire Public Utilities Commission. On January 11,1989, the NHPUC issued an order of notice which opened a docket to investigate the reasonableness of the rates charged by the Company, based on information that the Company was caming an overall rate of retum of 16.67% on its non-Seabrook rate base. The currently authorized rate of retum is 14.94%. On February 16,1989 the Bankruptcy Court preliminarily enjoined against the NHPUC from proceeding ' with this rate case. The Court's order does not preclude the NHPUC from conducting its routine regulatory oversight and supervision of the Company,includmg matters relating to the fixing of energy cost recovery charges or the investigation l: of specific components of the Company's rates based upon extemal events that may affect rates. Since then, the parties have agreed to postpone proceedings on a permanent injunction. The preliminary injunction remains in effect, but was relaxed to allow NU to pursue the Rate Plan before the NHPUC. In May 1989, the Company submitted.in response to an carlier order of the NHPUC,its Integrated Least Cost Resource Plan, r x component of which was a solicitation for an additional 50 MW to be supplied by either utility or non-utility source.. Proposals were received in December 1989 in response to the Company's request for proposals. In February 1990 the respondents were notified that, although the impending acquisition of the Company by NU raises significant issues as to funher need for and cost of power,the Company intends to proceed with its evaluation of proposals. In its October 1989 order accepting the Company's Integrated least Cost Resource Plan, the NHPUC ordered, among other things, that the Company's loog term avoided costs estimates be approved for 1989 as filed and should serve as the basis for the Company's negotiatiora with qualified facilities and that the Company participate in a collaborative process on a demand side management program design and related policy issues. On November 20,1989, the Company filed with the NHPUC to increase its Energy Cost Recovery Mechanism ("ECRM") tate. The ECRM rate is normally adjusted semi-annually in January and July and includes estimates for fuel and purchased power costs for the subsequent six month period and reconciles and adjusts for the over or under-recovery for the prior six month period. On December 18,1989 the Govemor of the State of New Hampshire signed RSA Chapter 362 C ordering the NHPUC to initiate a 5.5% temporary rate increase to the base rates of the Company to be held in escrow during a six month period in which the NHPUC would examine the Rate Plan entered into between the Govemor and the Attorney General, on behalf of the State, and NU. On December 21,1989 the parties to Docket DR 89 219 (the NHPUC 14
t docket opened pursuant to RSA Chapter 362 C) entered into an agreement for the calculation of ECRM. On December j p 28,1989 the Conunission ordered the establishment of a temporary energy cost recovery mecharusm (consistent with the i rate establisted for the previous six momb period) and a grand reconciliation for the period July 1,1989 through June 30, 1990 on or after July 1,1990. For the six months ended December 31, 1989 the Company's under. recovery was _ approximately $13.7 million. PURPA requires state utility regulatory commissions to make determinations with respect to certain issues of utility , regulation. Accordingly,the Company is at vanous times subject to continuing PURPA related activity as administered ' by the NHPUC with regard to rate design, rate structure, conservation and load management. i Federnt Energy Regulaeory Commission. In February 1987 the Company received a final audit report for the years ; 1982 1984 from the PERC in which the FERC audit staff made contested adjustments which included requiring refunds , of certain spent nuclear fuel disposal costs and the expensing of cancellation charges on a nuclear fuel contract which were previously capitalized. FERC consolidated its hearing on these issues with that of Montaup Electric Company, which was in hearings with the FERC addressing similar issues. The Company subsequently resolved the spent nuclear fuel disposal ; costs issue. On January 18,1989, the Administrative Law Judge issued a decision which resolved the remaining issues, ; including cancellation charges on the nuclear fuel contract which required the Company to reclassify the amounts in question from the nuclear fuel accounts to a deferred asset account. ' Die Company has complied by maldog the required adjustment. See Note 3 of Notes to Financial Statements. On January 30,1989 the Company filed a new non firm transmission tariff whichincreased the rates containedin the - previous tariff. On March 31,1989 FERC accepted the tariff for filing and permitted it to become e ffective on May 2,1989 without providing for refunds or ordering a hearing. Several utilities filed applications for rehearing requesting that a hearing be ordered and that the increase in tariff rates be suspended or made effeetive subject to refund pending the outcome of the hearing. While FERC did grant a reheanng for the purpose of considering the applications, on September 28,1989 it issued an order denying all appeals. Securities Litigation Against the Company. Various class actions have been filed in the United States District Court i
; for the District of New Hampshire against the Company and certsin present and former officers and directors, independent accountants, outside counsel, and various underwnters of the Company's securities. These actions assert securities law violations in connection with alleged misrepresentations and omissions relating to Seabrook, including the estimated cost and completion date thereof,in the Company's prospectuses and other disclosure documents. Each action is alleged to be brought on behalf of a class of purchasers of the Company's securities consisting of those who purchased through a particular public offering, through the Company's dividend reinvestment and common stock purchase plan or on the open market during various periods from October 29,1981 through March 1,1984. The suits sought unspecified damages and rescission. After consolidating the suits the Distnct Coun dismissed certain fraud and misrepresentation claims and certified only three of the eight potential classes of stockholders for which certification was sought. On January 14,1988, the Court reaffirmed that order, but directed the parties to proceed with class notice and discovery. These actions were stayed as to the Company by the automatic stay in the Chapter 11 case. On agreement of all parties, neither discovery on the part of the remaining plaintiffs nor class notice commenced. On January 17,1990 all parties to the various class actions filed in the District Court a proposed settlement of the actions. The settiement is subject to the approval of the District Court and the notice to the classes of purchasers on whose behalf the actions were brought required by the terms of the settlement has been given. Under the terms of the proposed settlement, contributions to the gross settlement fund of $5.3 million are made by or on behalf of all defendants other than the Company. The Company contributes nothing to the settlement fund '
and is released from all claims which were or might have been assened by all class members in connection with purchases of the Company's securities during the period October 29,1981 through March 1,1984. The contribution to the gross settlement fund on behalf of the defendant directors and officers consists of proceeds from a directors and officers liability insurance policy purchased by the Company in 1983. The Company has determined that the defendant directors and , officers are entitled to indemnification under the Company's by laws and applicable New Hampshire law for certain costs
, of their defense in the various class actions. The indemni6ed defense costs were advanced to the defendant directors and officers by the Company prior to its entry into bankruptcy proceedings in January 1988. The pre bankruptcy defense costs of the Company and the defendant directors and officers totaled approximately $1.3 million; the Company estimates that i
at least one half of that amount is allocable to its own defense. On February 22,1990 the Bankruptcy Court approved the Company's indemnification of such defense costs of the defendant directors and officers and approved the Company's participation in the proposed settlement. The District Court has scheduled a hearing to determine whether the proposed ( I- 15
N N M i F 1 settlement is fair, masonable, adequale andin the best interest of the classes of purchasers' on hose behalf the actions were twought for May 7,1990, In December 1987 Spear, Leeds & Kellogg, a New York partnership engaged in securi es, option and commndity trading, filed an action against the Company and certain ofits present and former directors and. 'ficers in the U.S. District Court for the Southem District of New York, Spear. Leeds & Kr!!ogg v. hblic Service Comps v ofNewHomshire, er af., Elliott Associates L.P., a Delaware limited partnership engagedin tradmg secunbes,subacc, otlyjomed the suit as an additionalplaintiff. De plaintiffs assened various securities law ara haud claims against all defert 'ts. Plaintiffs also
- alleged twench of contract against the Company only. All of the plaintiffs' claims purportedly arose re' ithe suspension by the Company of the exercise rights under the Company's outstanding warrants (the " Warrant ~ , so pur hane shares of
- Common Stock issued in connection with the initial offering of the Company's 17 1/2% De' .ntures due 2004 (the"17 1/2% Deben:ures"). Plaintiffs sought damages of an unspecined amount. Plaintiffs also ar ,ght punitive damages, costs and artomeys fees. Both plaintiffs had also Aled proofs of claim in the Chapter 1 i case on se' stantially the same allegations as made in the complaint, in December 1988,the District Court denied a motion by defet Ants, other than the Company, for dismissal of the complaint as amended and their alternate motion for summary judg ent. De District Coun ordered the parties, other than the Company, to conclude discovery by February 10,1989 and f ,be prepared for a trial in March 1989. His action was stayed as to the Company by the automatic stay in the Chapter 11 case.
3 i On March 31,1989, the Bankruptcy Court approved a stipulation of settlement reached earlier among the plaintiffs, the Company, and the defendants other than the Company (the " Individual Defendants"). Under the settlement, the plaintiffs agreed to dismiss all claims which they might have asserted in connection with the purchase, transfer, or sale of 171/2% Debentures, Warrants, or shares of Common Stock between May 1,1986, and the date of the Stipulation of Settlement and to withdraw their related claims in the reorganization case; the Individual Defendants agreed to pay
$975,000, which was held in escrow until the settlement became final and was provided by the insurance company providing direetors and officers insurance for the applicable period; and the Company agreed to cause the issuance of shares of Common Stock of the Company to all holders of Warrants who tendered round lots of 200 War ants and $1,000 face amount of the 17 1/2% Debentures during the period May 1,1989, through September 15,1989. The issuance of shares of Common Stock under the settlement was subject to certain conditions and eaceptions, including the earlier seferenced approval by the Bankruptcy Court. The Bankruptcy Court's approval of thc settlement was contingent upon the District Court entering an order that the terms and conditions of the issuance of the shares of Common Stock of the Company were l fair and that the exchange and issuance contemplated by the settlement are within the exemption provided in Section ;
3(a)(10)of the 1933 Act,15 U.S.C.section 77c(a)(1982).That order was entered on April 24,1989.The settlement became ; final on September 15,1989, the action was dismissed and the suspension of the Warrant e Aercise right previously in effect l was reinstated. Through September 15,1989 (the last day on which Warrants could be exercised under the settlement) 4,952,800 sharee of the Company's Common Stock were issued in exchange for $24,764,000 pnneipal amount of the 17 ; l/2% Debentures (which were cancelled after surrender) and 4,952,800 Warrants, leaving 13,420,199 Warrants outstand- ' ing. On March 1,1990 an action was commenced in United States District Court for the District of New Hampshire captioned Dominick Zaccoli v. Robert /. Harrison. ci af., (No. C.90100 L). The action is brought individually and as a purported class action on behalf of all others similarly situated against the same present and former directors and officers named in the Spear, Leeds suit described above. The Company is not named as a defendant. The complaint alleges claims under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b 5 promulgated thereunder, under i,ertain provisions of the New Hampshire Blue Sky laws (RSA 421.B), and under common law, The allegations of the complaint are substantially the same as the allegations in the Spear, Leeds action. De complaint seeks damages in an unspecified l amount and costs and attomey's fees. ! g m
t '!!l leem 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
~<. !
l There was no matter submitted to a vote of the Company's security holders during the fourth quaner of Ascal 1989. Item 4A. EXECUTIVE OFFICERS OF THE REGISTRANT
~ Information is set forth below as to the names and ages of the executive officers of the Company, their positions as offixrs of the Company both current and for the past five years, their length of service with the Company, and in the case of Messrs. Edwards and Feiganbaum, a brief eaplanation of their respective prior five years' business positions and espon-sibilities.
Age and (Years of Maat Psition Service) 3i John C. Duffett.......... ... Chairman, President and Chief Recutive Officer since 62(36)
- February 1990. President and Chief Executive Officer
,i (1988-1990); Executive Vice President and Chief Operating Officer (1986-1988); Senior Vice President l (1982 1986) Ocorge Branscombe..... ... Senior Vice President Finance and Treasurer since 42(10) l November 9,1989; Vice President and Treasurer (1985 1989); Treasurer (19821985) D. Pierre O. Cameron. Jr.. - Senior Vice President and General Counsel since October 1988; 55 (9) Vice President and General Counsel (1980-1988)
,- John P. Edwards.............. Senior Vice President Customer Affairs since October 1988; 47(4)
( Vice President for Public Affairs (19851988); Vice
\
President Corporate Communications, Public Service l Company of Indiana. Inc., Plainfield, Indiana (1982
, 1985)
. Ralph S. Johnson.... ....... Senior Vice President since October 1988; Vice President 46(21)
(19851988); Director of Power Planning / Supply (19841985) Ted C. Feigenbaum.. .. .. Chief Nuclear Production Officer since January 11,1990; 39 (4)' ! Senior Vice President New Hampshire Yankee Division i_ (19891990); Executive Assistant to Senior Vice ! President Nuclear Energy (1986-1987); Project Engireer. Ebasco Services. Inc., New York, New York (1978 1986) (1) William T. Frain, Jr... .... Vice President (2) 48(25). l l' Earl O. legacy....... .... . Vice President since April 1988; Director of General 57(30) l l Engineering (19831988) James L. Nevins..... .. ... Vice President (2) 55(21) Robert A. Parks.. . .. . .... Vice President (2) 44(21) Frederick R. Plett... . ... .. Assistant to the President since January 1990; Assistant 43(22)
. Vice President (19881990): Assistant to the t President (1985 1988); Director Corporate Strategic Planning (19821985) l-j 17
.-~
t' Age and *l (Years of Estat Posinon Service) John J. Lampton... .. ... Assistant Vice President (2) 45(18) Bruce W. Wiuett........ .. . Comptroller since April 1988; Assistant Comptroller 43(15) (1981 1988) Russell A. Winslow..... .... - Secretary (2) 55(28) i (1) As Project Engineer for Ebasco Services incorporated, Mr. Feigenbaum had various construction and operation responsibilities on utility power projects, including the construction and operation phases of the St. Lucie Plant of Florida Power & Light Company. (2) Has held same position for at least five years. 1 I l PARTII l l item 5. MARKET FOR THE COMPANY'S COMMON EQUITY AND RELATED SECURITY HOLDER MATTERS j Shares of the Company's Common Stock are traded on the New York and Pacific Stock Exchanges. The high and low sales prices during 1989 and 1988 on the New York Stock Exchange were as follows: M M Hish La Hisb - La , First Quarter... .... ....... ..- 61/8 35/8 33/4 3 sib i Second Quarter., . . . . . . . 4$/8 33/4 41/2 3 Third Quarter...... .. .. ... .. 41/2 37/8 43/4 37/8
. Fourth Quarter.. . . 4 23/4 6. 41/4 Since April 1984 the Company has omitted dividends on shares of its Common and Preferred Stocks. {
Subject to the prior right to dividends on shares of the Company's Preferred Stock, $100 par value, and on shares of its Preferred Stock, $25 par value, and to the limitations set forth in this and the next succeeding paragraph, shares of Common Stock are entitled to dividends when and if declared by the Board of Directors out of any remaining funds legally available therefor. As a result of the omission of quarterly dividends payable on shares of the Company's Prefened Stock, and the fallure of the Company to make sinking fund payments on certain series of the Company's Sinking Fund Prefened Stock, no dividends may be paid on shares of the Company's Common Stock. Such dividends may not be resumed until the Company has made the sinking fund payments and paid the dividend arrearage on shares of its Preferred Stock. In addition, the NHPUC has issued an order that directed the Company not to pay dividends on shares of its Common and Preferred Stock until authorized to do so by further NHPUC order. The Company anticipates that no such payments will be made during the Chapter Ii case, and believes that any reorganization planin the Chapter 1 i case will substantially alter or eliminate the rights of the holders of shares of Preferred and Common Stock. See item 1. " Business Speculative Nature of the Company's Securities Equity interests". O 18
/ 1
.4-l." kom 6, SELECTED FINANCIAL DATA
/ M 8 M M M
! A (Thousands of Dollars Except Per Share Amounts and Ratios) Operating Revenues - $ 619,388 $ 603,485 $ 549,108 $ 505.190 ' $ $19,740 Fuel and Purchased Power Expense 289,855 267,769 221,142 217,644 247,809 Operating income 88.443 104.543 98,148 83,888 81,173 , Total APUDC 1,409 1,740 2,291 194,275 175,799 - l Capitalized intciest , 36,029 47,479 169,068 . . l> Losses on Generating Projects (336,472) . (241,452) (348,521) - locome (Loss) Before Cumulative Effect of - ! . Change in Seabrook Plant Accounting (t) (203,237) 55,273 (87,036): (198,365) - 154,742 Per Share: l Earmogs (Loss) Before Cumulative Effect of Change in Seabrook Plant Accounting (5.07) 1.14 (3.44) (6.44) 2.50 Ratio of Eamings to Fixed Charges (1.83) 1.88 .30 .20 2.03 Shares of Common and Common Stock Equivalents Outstanding (Average) 40,089 48,134 37,194 37,194 43,128 Unfinished Consouction (2) $1,530,500 $1,806,(04 $1,813,369 $1,874,289 $1,989,164 Total Assets 2,447,521 2,703,788 * ^23,605 2,70',844 2,662,384 Long. Term Debt (3) . . 188 1,*/2,585 1,089,922 l Debt and Accrued laterest in Defaelt (3) . . . 38 . . l Liabilities Subject to Settlement Upon l Reorganization (3) 1,691,115 1,675,250 - . . Preferred Stock with Mandatory Redemption Requirements (4) 420,613 420,613 417' 98 380,389 272,840 Total Capitalization (5) 2,274,313 2,437,794 1,214,609 2,542,802 2,467.555 -! i: 4 (1) See Notes 2 and 3 of Notes to Financial Statements. (2) See Note 3 of Notes to Financial Statements. (3) Subsequently reclassified to Liabilities Subject to Settlement Upon Reorganization. See Note 5 of Notes to Financial Statements.
- l. (4) Includes cumulative Preferred Stock dividends in arrears. See Note (b) of Notes to Statements of Capitalization. ,
(5) Not including Debt and Accrued Interest in Default. t Y i t u'[ ri
. _ t . . . - - - - - - -- -- . -
t j i l
] ' Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS l
Capital Requirements and Liquidity The Company's Bankruptcy
- On January 28,1988, the Company filed a yoluntary petition for reorganization under Chapter 1 I of the United States Bankruptcy Code, The financial dif6culties that led to the Company's bankruptcy were attributable to a combination of several factors: the magnitude of the Company's investment in the Seabrook Nuclear Ornerating Station Unit 1
- ("Seabrook"), which represents more than half of the book value of the Company's assets on its financial statements ; the delay in obtaining approval of the operation of Seabrook from the Nuclear Regulatory Commission ("NRC"); and the prohibition under New Hampshire law of the realization by the Company of any cash income from or retum on that investment until Seabrook provides service to customers (the so-called anti-CWIP statute). In January 1988 the New ,
Hampshire Supreme Court upheld the anti CWIP statute and prevented the New Hampshire Public Utilities Commission ("NHPUC") from considering the Company's request for emergency rates, which were an essential element of the Company's efforts to achieve a financial restructunng outside of Chapter 11. 1 Since the filing of the petition for reorganization under Chapter 11, the Company has continued normal operations as a debtor-in-possession under the protection and subject to the jurisdiction of the Bankruptcy Court, and subject to approval by that Court of transactions not in the ordinary course. Two official committees represent the interests of the Company's unsecured creditors including debenture holders and trade creditors (the " Unsecured Creditors Committee") and the a Company's equity security holders, including Preferred and Common stockholders and Warrant holders (the " Equity l Committee")in the reorganization case. The Bankruptcy Court granted the State of New Hampshire (" State") full party )
- in interest status in the case. The State has actively represented the interests of ratepayers in the case and particularly in l negotiations toward a reorganization plan.
The Plan of Reorganization 1 The goal of a Chapter 11 reorganization case is a reorganization plan which resolves all claims against and equity interests in the reorganizing company. Since shortly after the filing of the Chapter 1i case, the Company engaged in negotiations with the State, the two Committees, and others to develop a plan that is supported by all of the major parties in the case. During the same period, others have attempted to do the same, including Northeast Utilities ("NU"), New .l England Electric System, and The United Illuminating Company, all of which sought to acquire or merge with the 1 Company under a reorganization plan. On December 13,1989, the Company announceditt support for a plan (the " Plan") proposed by NU and also supported by the two Committees,the majority in amount of holders of the Company's Third Mortgage Bonds (and ooligations secured by those bonds), and the State. NU is a registered public utility holding company q with operations in Connecticut and Massachusetts. On April 20,1990 the Bankruptcy Court confirmed the Plan. (See i
" Confirmation of the Plan", below).
The Rate Plan. The Plan is based on an agreement (the " Rate Plan") regarding rates and power supply between Northeast Utilities Service Company ("NUSCO"), an NU subsidiary, on behalI of NU, and the Govemor and the Attomey General of the State of New Hampshire, on behW of the State. The New Hampshire legislature approved the Rate Plan 6 on December 14,1989, subject to NHPUC review. The Rate Plan, which permits a departure from the anti-CWIP statute, provides for seven annual 5.5% increases in the Company's retail rates, commencing January 1,1990, The first increase has alseady been implemented, and the amounts collected are currently being held in escrow, subject to final approval and effectiveness of the merger described below, except as to amounts to be collected from the later of final approval or July 1,1990 through the Effective Date of the Plan, discussed below. The effectiveness of the Rate Plan is contingent upon NHPUC approval. The Rate Plan will be e ffective for Reorganized PSNH even if the merger with NU is not consummated. The Plan. The Plan provides for the acquisition of the Company by NU in either a one step or two-step transaction, depending on when certain regulatory approvals for the acquisition are obtained, and the distribution of up to $2.3 billion in cash and securities on the date (the " Effective Date") the Plan becomes effective and the Company emerges from reorganization as Reorganized PSNH. The Effective Date deadline specified in the Plan is August I,1990, but the Plan permits the deadline to be extended by the agreement of NU and the two Committees. 20
,,,,m. , _ , - , --y . ,_,.,.__..m ~ . , , , - - . , , , - , , - - , , , , , , , . - ,,.
I
?
e b There are censin conditions to the Effective Date, including certain tax rulings, allowance in the reorganization case b of not more than $900 million in unnecured claims against the Company, and certain agulatory approvals. The regulatory
'U' s approvals equimd for the Plan to become effective include the NHPUC's approval of the Rate Plan and the issuance of ,
+
securities of Reorganized PSNH, the approval (or waiver ofjurisdiction by) the Connecticut Depanment of Public Utility Controf with respect to securities issuance, and the approvals of censin transitional management arrangements, discussed below, by the Federal Energy Regulatory Commission ("FERC") and the United States Securities and Enchange i Commission ("SEC"). The Company believes that these conditions can be met by the August i deadlina or shonly thereafter. The PERC and the SEC have already approved the transitional management arrangement, and the NHPUC has set a hearing schedule that would result in its rendering a decision by early to midsummer 1990. The Aegislettien of the Company by NU, The Plan provides for NU's ultimate acquisition of the Company through the Company's merger with a wholly owned subsidiary of NU that is to be formed solely for the purpose of effectuating the acquisition. At the time of the merger (or as soon thereafter as practicable) the Company's interest in Seabrook will be transferred to a newly formed subsidiary of NU, North Atlantic Energy Company ("NAEC"), whose sole asset will be ( the Company's Seabrook interestc NAEC will enter into a contract with reorganized PSNH under which Reorganized - PSNH will purchase the entire output of NAEC's interest in Seabrook for the life of the Seabrook license. Another NU subsidiary would be appointed as operator of Seabrook if required approvals of the Seabrook Joint Owners and the NRC are received. These transactions require regulatory approvals of the FERC, the SEC, the NRC, and the public utility commissions of New Hampshire and Connecticut, and perhaps of Maine and Vermont, where the Company owns certain properties. Filings for approvals of the FERC and the SEC were made by NU in January 1990. Some sixty intervenors, including many
- New England utilities and all of the regulatory commissions and censin other officials of the New England states, have i
appeared in the FERC proceeding and have raised various issues in those proceedings, including censin antitrust and anticompetitive issues. A lesser number of intervenors, some of whom are also intervenors in the FERC proceedings, have , l appeared in the SEC proceedings and raised issues similar in large part to those raised before PERC.
; If all regulatory approvals for NU's acquisition of the Company are obtained by the Effective Date,then the acquisition will occur on the Effective Date (the one step transaction). Othervise, the Company will emerge from reorganization as a stand alone company, subject to a contractual obligation to be acquired by NU (the two-step transaction) upon the 4 satisfaction of certain conditions. In the two-step transaction, holders of visecured claims and of shares of the Company's ,
A existing Preferred and Common Stock will receive shares of Common Stock of Reorganized PSNH. When the acquisition a ultimately occurs, holders of shares of Common Stock of Reorganized PSNH will ceive $20 per share,in cash, and NU will acquire all shares of Reorganized PSNH's Common Stock. Based upon the cunent schedule in the FERC proceeding, it appears likely that the acquisition of the Company will be accomplished as a two-step transaction. r e Distribution to Cmditors and Shareholders Under the Plan. Under the Plan, all holders of secured claims (other than two existing issues of pollution control revenue bonds in the arnounts of $100 million and $112.5 million, which may , be assumed and reinstated by Reorganized PSNH under the Plan) will receive cash in the full amount of their claims for principal, interest, and interest on interest. Holders of unsecured claims will receive cash and,1f the acquisition is a two step transaction, shares of Common 3tock of Reorganized PSNH. Holders of shares of existing Prefened and Common Stock ' of the Company will receive notes that are contingent on Seabrook's achieving cenain licensing and operational milestones and either cash and warrants to purchase shares of NU Common Stock,if the acquisition is a one step transaction, or shares of Common Stock of Reorganized PSNH and certificates entitling the holder to receive warrants to purchase shares of NU Common Stock when (and if) the acquisition by NU occurs,if the acquisition is a two-step transaction. Holders of the Company's outstanding Warrants (and any claims arising with respect to such Warrants) will receive in the aggregate !
$1.3 million in cash. The total amount of cash and face amount of securities (including the contingent notes) to be distributed to creditors and equity holders under the Plan is approximately $2.3 billion.
Connrmation of the Plan. On January 3,1990, the Bankruptcy Court formally approved a disclosure statement for the Plan, ordered the Plan, the disclosure statement, and ballots for the Plan transmitted to all of the Company's creditors and equity security holders, and set April 4,1990 as the date for commencing hearings on confirmation of the Plan. On April 20,1990, following six days of hearings, the Bankruptcy Court entered orders overruling all objections to - confirmation, finding all conditions to confirmation set fonh either in the Bankruptcy Code or in the Plan satisfied, and confinning the Plan (the Confirmation Order"). 21
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- Transitional Board of Directors and hhnagement. The Confirmation Order provides, consistent with the j
provisions of the Plan itself, that upon confirmation, all of the directors of the Company are deemed to have resigned, without further action by any person or entity, effective at 8:00 a.m. on April 30,1990. A new, seven member board will; ' i take ofnce then. Three members were appointed by the Equity Committee, three members by the Unsecured Creditors Committee and one member was jointly appointed by both Committees. Each of the Creditors Committee appoiniees are also members of the Creditors Committee; each of the Equity Committee appointees are also members of the Equity + Committee. No current directors or officers are among the new Board appointees. The new Board will men'e until the , I acquisition is consummated. The new d rectors, their current affiliations. and their sources of appointment are: Mam_f Affilidon Armointed by Jor ph P.Tyrrell(Chairman) Former Officer of Boston Edison Joint Committee James K, Anhur Certified Reporting Co. Equity Committee . Douglas A.Barry Monarch Life Insurance Co. Equity Committee Nowell A. Blake Mutual Benefit Life losurance Co. Equity Committee Stephen Davis IBJ Schroder Bank & Trust Company Creditors Committee v i James D. Neidhart Equitable Life Assurance Society Creditors Committee Anthony Ben Walsh Private investor Creditors Committee in addition, a separate order of the Bankruptcy Court, entered April 13,1990, provides, consistent with the provisions of the Plan itself, and subject to FERC and SEC approvals (which have already been obtained), that a Management Services Agreement (the "MSA") between the Company and NUSCO will take effect at 8:00 a.m. on April 30,1990, under which the Company will be managed by NUSCO from then until the acquisition is completed or is terminated, whichever occurs first. The Plan provides that the Chief Executive Officer and each Senior Vice President of the Company will be deemed i to have resigned. without further action by any person or entity,60 days after April 30,1990, or sooner, at the option of the Company on 30 days notice at any time after confirmation, but in no event later than the acquisition date. The Plan, the Confirmation Order and the MS A contemplate that the new seven member board will select the officers of the Company to serve until the acquisition. The Chief Execuuve Officer and each Senior Vice President have tendered their resignations as officers, effective 8:00 a.m. on April 30.1990. NUSCO advised the Bankruptcy Coun during the confirmation hearing that the new Chief Executive Officer of the Company would be 1. con E. Maglathin, a retired executive of Westem Massachusetts Electric Co. (an NU subsidiary) and that the new Secretary / Treasurer would be Bruce W. Wiggett, who is currently Comptroller of the Company. These new officers, however, have not yet been appointed by the new board. In view of the total change in control of the Company,its Board, and its management on April 30,1990, there can be no assurance that any of the Company's existing policies or practices or any aspect of its business operations will remain unchanged on or after April 30,1990. Risks. There can be no assurance that any of the regulatory approvals required for the Effective Date of the Plan or ; for the acquisition will be obtained within the deadlines established in the Plan. Opposition to the Rate Plan and to the l
- e
. acquisition has already been filed by intervenors in the regulatory proceedings for approval of the Rate Plan and the acquisition. Unless all Effective Date conditions are satisfied,includmg financing arrangements reasonably satisfactory to NU, and all necessary regulatory approvals are obtained, the Plan will not become effective, Even if the Plan does become effective, if the requisite approvals for the acquisition by NU are not obtained, the acquisition will not occur.
If the Plan does not become effective,it will be necessary for the Company to seek io achieve another reorganization plan. The Company cannot reasonably predict whether or when it will be possible to achieve such a plan or what the terms , of any such plan might be. If the Plan becomes e ffective but the acquisitionis not consummated, Reorg anized PSNH would be operated as a stand alone company under the applicable provisions of the Rate Plan . Speculative Nature of the Company's Securities Equity Interests. In view of the uncertainty over effectiveness of the Plan and the consummation of the acquisition contemplated under the Plan and over the outcome of the Chapter 1i reorganization case if the Plan and the acquisition were not consummated, the value of the Company's outstanding equity securities is highly speculative. The Ccmpany ceased paying dividends on its Common and Preferred Stock in 1984. The Plan, or any other reorganization plan confirmed in the Chapter i I case, will result in substantial alteration or elimination of some or all of the current rights of the holders 22
w. l:
' of shares of Common and Prefermd Stock. The dilution in equity interests that will be suffered by holders of shares of the
' Company's Common and Preferred Stock in any reorganization, including under the Plan,is likely to be extensive.
Unseewed ladebtedness. The Company has not paid interest on its unsecured indebtedness since October 1987 and does not anticipate that it will resume interest payments before emergence from seorganization. Upon emergence,it is . likely that the rights of holders of unsecured claims will be substantially altered, and the holders willlikely receive cash and other secunties in satisfaction of their claims. If the Effective Date of the Plan does not occur, the Company cannot predict what form or amount of distribution the holders of unsecured claims will receive in the reorganization. Seewed indebtedness. Cash flow concems could result in the suspension ohhe payment of interest on some or all of the Company's secured indebtedness. If the Effective Date of the Plan does not occur,the Compaay cannot predict what form or amount of distribution the holders of secured claims will receive in the norganization (see " Cash Plow Concems" below). Cash Mow Concerns Upon the filing of the Chapter 11 case, the Company ceased making interest and principal payments on all of its indebtedness. The Company resumed interest payments on its First Mortgage Bonds and its General and Refunding Mortgage Bonds (and indebtedness secured by such bonds)in the spring of 1988 and has kept interest payments on those Bonds current since then. By not paying interest on its other indebtedness and by not reducing the principal on any ofits . indebtedness, the Company has generated sufficient funds intemally to satisfy its cash requirements. Assuming continued non-payment of such debt service, continued growth (about 1.65% annually) in the Company's level of sales, the j continuance of the Company's present rate structure, availability of the Company's $37.5 million shon term credit, and that there are no material additions to the Company's projected operating and capital expenditures, the Company estimates that it can satisfy its cash requirements through 1990. Nevertheless, the Company could encounter cash flow problems during the Chapter iI case if the Effective Date is , delayed substantially beyond its curn;nt deadline. The Company's construction expenditures for 1990-1994 are estimated j' at approximately $404 million, but could be significantly inenased if the Company is required by environmentallaws to make additional expenditures, particularly in response to legislation regarding acid rain. The P! n requires that the Company recommence semi annual payments of interest on its Third Mortgage Bonds and indebtedness secured by its Third Mortgage Bonds as of August 1,1990,if the Effective Date has not then occuned. The semi annual amount of such payments is approximately $21 million. It is doubtful that the Company could make such payrnents for an extended period. Because of the financial constraints under which the Company has been operating for the last several years, operating budgets and capital expenditures have been reduced to the point that, should any additional cash flow savings be required in the future to accommodate additional expenditures, the Company might be required to cease paying interest on some or af caning indebtedness or suffer reductions in the quality of utility service provided by the Company. Construction Program The Company has substantial capital requirements to satisfy if it is to provide adequate service to its growing service area. The Company's construction program for the five year period 1990-1994, exclusive of expenditures for Seabrook, is curnntly estimated to be approximately $287,900,000. The Company's share of Seabrook related pre-operational start-up testing and power ascension expenditures and of other capital expenditures once full power operation has been achieved are estimated for the period to aggregate $116,200,000, based on Seabrook's assumed operational date for financial forecast purposes of May 1,1990. The Company anticipates that its obligation to pay up to $ 30 million of MMWEC's share of Seabrook related pre-operational expenditures under the Seabrook Comprehensive Settlement, which have been made from intemally generated funds, will be completed in April 1990, at which time MMWEC is obligated to resume such payments. Certain Joint Owners have under consideration the means to resolve the eventuality that MMWEC is unable i on a temporary basis to resume payments. Set forth below are the Company's estimated expenditures in these categories i for each of the years in the 1990-1994 period, assuming for these purposes a Seabrook operational date of May 1,1990: 1 1 23
]
~,
,j), &
?
Seabrook ! y Comprehensive
.g' Non Seabrook Plant Seabrook Plant Comnany Total Settlement 1990 $ ~ 56,800,000 $ 31,800,000 $ 88,600,000 $ 9,800,000 ; W ,
1991' 60,300,000 21,000,000 81,300,000 2,000,000 1992 51,30'),000 19,600,000 70,900,000 2,000,000 1993' 60,400,000 23,000,000 83,400,000 2,000,000 1994 59,100,000 20,800,000 79,900,000 2,000,000 Total $287,960,00d $iR20d,660 $404,100,000 $17,800.000 It is possible that substantial additional expenditures may be required to meet regulatory and environmental requirements at Seabrook and the Company's other generating facilities. See " Regulation - Air Quality Control", i Results of Operations Operating sevenues increased 2.6% for the year ended December 31,1989,9.9% for 1988 and 8.7% in 1987, The increase for 1989 was due to a
- 8% increase in the number of customers and a corresponding increase in megawatt hour '
("MWH") sales. The increase for 1988 was due to the growth in MWH sales of 7.1 % and a small increase in the Company's energy cost recovery revenues resulting from higher fuel costs. The growth in 1988 MWH sales was primarily due to a 4.1% increase in the number of customer: served with an increase in consumption per customer, due to weather related conditions. The increase for 1987 was due to base rate and energy cost recovery revenue increases as prime MWH sales t deereased 2.8%.- , F Fuel and purchased po ver expense increased 8.2% for 1989, 21.1% for 1988 and 1.6% for 1987. The increases were the result ofincreased charges for those items from the Company's suppliers. Operating expenses, other than fuel and L purchased power and taxes on income, increased 10.2% for 1989, remained unchanged for 1988, and increased 21.0% for
- 1987.The 1989 increase was due to an increase in bankruptcy related costs and certain expenditures u hich were postponed from 1988. The increase in 1987 resulted mainly from increases in the costs needed to support the growth in the number of customers served as well as increases in maintenance, depreciation, property taxes and insurance, c The Company had an overall provision for income tax recoveries of $65.7 million for 1989, a provision for income tax expense of $37.6 million for 1988, and recoveries of $72.9 million for 1987. Effective tax rates varied significantly from 1987 to 1988,(see Note 6 of Notes to Financial Statements). All of the amounts represent non-cash changes in accumulated deferred income taxes associated with financial statement provisions for losses on generating projects. ,
The Financial Accounting Standards Board has promulgated new income tax accounting rules which will require the , I Company to change from the deferred method to the liability method of accounting for income taxes. The liability method I~ accounts for deferred income taxes by applying enacted statutory rates in effect at each balance sheet date to differences between the book basis and the tax basis of assets and liabilities, The Company currently plans to adopt, in 1992, this standard on a prospective basis. Upon adoption the Company expects that a regulatory asset, for the tax effects of temporary differences for which deferred taxes have not been provided because they will be recovered from customers in future years, and a related deferred income tax liability will be established. Since the Company expects, after reorganization, to apply i SFAS No. 71, to the entire company, no material impact on the Company's financial position or results of operations is expected. As of January 28,1988, the date of the filing of the Company's Chapter 1i petition, the Company ceased accruing interest on its unsecured debt. As a result, for the years ended December 31,1989 and 1988, interest on long term debt and capitalized interest was approximately $139 million and $130 million, respectively, lower than they otherwise would have been. Interest on Long Term Debt and Other Interest increased 7.1% for 1987. The increase reflects the issuance of additional debt totaling $100 million in May 1987. The Company ceased capitalizing Seabrook costs e ffective December 31,1987. Accordmgly, a loss of $212.0 million was recognized in 1987 associated with the estimated remaining costs to be incurred prior to a previously assumed l operating date of January 1,1990. In 1989 the Company revised its assumed operating date to May 1,1990 and recorded an additionalloss of $23 million to reflect the anticipated delay, $92.8 million and $109.5 million was charged to the reserve during 1989 and 1988, respectively,includmg $36.0 million and $47,5 milhon of capitalized interest associated with the Seabrook investment. 24
e
.t' h
. In March 1989,the Company expensed $50.8 million associated with the Seabrook Comprehensive Settlement. Under ~
the nettlement, the Company agrees to assume MMWEC's share of Seabrook pre operational expenditures ar.3 to pay certain other amounts,(see Notes 2 and 3 of Notes to Financial Statements). The Plan is based on Reorganized PSNH distributing to creditors and equity accurity holders of the Company ap-proximately $2.3 billion in value. The amount paid by Reorganized PSNH is supported by the Rate Plan which flaes the Seabrook cost recovery at $700 million, provides for the full recovery of the net historical costs of non Seabrook assets (approximately $800 million) and, additionally, creates regulatory assets of approximately $800 million. Pursuant to the Rate Plan, Reorganized PSNH is permitted to recover the cost of these regulatory assets (with a retum on the unrecovered balance) over periods of 7 to 20 years. The Plan has been confirmed by the Bankruptcy Court. There is no assurance that the Effective Date of the Plan will occur, However, based on the Confirmation Order and the findmgs made by the Bankruptcy Court in conjunction therewith and progrec :o date in meeting other conditions to the Effective Date, management of the Company believes that the Effective Date will occur and the Company's creditors and equity secunty holders will receive approximately $2.3 billion in value on account of their claims against and interests in the Company. Therefore, management of the Company concluded that it was appropriate to recognize an impairment loss of $260 million in its financial statements at December 31,1989. The loss was calculated as the difference between the book value of the Company's Seabrook assets at December 31,1989 and the value assigned to the Seabrook assets and the regulatory assets allowed under the Rate Plan. The preferred dividend requirements were reduced in 1989 and 1988 by '#41 0 millioe and $37.9 million. respectively, since the Company ceased accruing preferred dividends upon the filing cf the Chapter 1I petition in January 1988. Had the Company not discontinued accruing preferred dividend requirements .eamings (loss) available for common stock and i enmings (loss) per common and common equivalent share would have been $(244,211,000) and $(6.09) and $14.298,000 and $0.35 for 1989 and 1988, respectively. j Inflation continues to affect Company operations, since under existing regulatory practice the investment in utility plant has been recovered at historical cost but replaced, as necessary, at current cost. In the case of Seabrook, the rates necessary to fully recover accumulated inflation and carrymg costs will be in excess of what the customers for that power pay, even under a rate agreement such as the Rate Plan. Thus something less than the historical cost of the Company's investment in Seabrook will be recovered. The effects of in0ation on other expenses are generally recovered through energy cost recovery mechanisms. Under the Plan, rate increases for non energy cost recovery will be limited, but are expected to provide certain base levels of eamings for Reorganized PSNH. The results of operations discussed above are not necessarily indicative of future camings. Continued gmwth in MWH sales will depend upon the the rate of economic growth in New Hampshire, weather, the competinon from other energy sources and suppliers, and the price of electricity. The reorganization of the Company will have a significant impact on
" future interest expense and camings levels and resulted in substantial decreases in the carrying value of the Seabrook asset.
In addition, the total change in control of the Company,its board of directors, and its management as of 8:00 a.m.on April 30,1990 (see " Transitional Board of Directors and Management" above) may have a signi6 cant impact on the Company, its policies and practices, and its business operations. 25
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f3 'd ' Item 8,' FINANCIAL STATEMEPUS AND SUPPLEMENTARY DATA
' PUBLIC SERYlCE COMPANY OF NEW H AMPSHIRE STATEMF.NTS OF EARNINGS '
,: z For the Year Ended December 31. -
1289 . 1961 1981 (Thousands of Dollers Encept hr Shen Amounto Operating Revenues . Residential $ 241,762 $237,385 '- . $ 214,227.- ladustrial 170,487 165,171 150,437
; Other 207,t 39 200,929 184,444 -
_ Total Operating Revenues 619,388 603,485 549,108 Operating Expenses
' Operation Fuel 113,690- 137.122 123,571 1 Purchased and Interchanged Power 176.165 130,647 97,57i Bankruptcy Related Expenses 14,672 9,801 .
Other Operating Expenses 98,377 86,766 97.180 ; Maintenance ~ 41,425 39,147 37,236 i Depreciatica 34,045 32,690 31,3 % o Taxes on income (Note 6) 23.168 33,492 35,601 Other Taxes, Principally Property Taxes 29.403 29,277 ' 28,405 1 Total Operating Expenses $30,945 498,942 450,960 Operating income 88,443 104,543 98,148 ; Other income and Deductions '
' Allo'wance fut Equity Funds llaed During Construction (Note 3) 454 598 1,183 j
, : Taxes on income (Note 6) 88,863 (4,113) 108,478 N/ Equity in Eamings of Affiliated Companies 1,609 .-1,308 1,423 - Interest and Dividends 10,167: 7,575 5,666 'i Losses on Generating Projects (Note 3) (336,472) - -(241,452) .l
- Other Net .
42.. 607 (5,299) ; Total Other income and Deductions (235,337) 5.975 (130,001) Income (Loss) Before Interest Charges (146,894) I10.518 (31,853) Interest Charges Interest on Long Term Debt (Note 5) 92,769 100,525 210,409 Other Interest 558 3,341 14,950 Capitalized Interest (Note 3) (36,029) (47,479) (169,%8) , Allowance for Borrowed Funds Used During i Construction (Note 3) (955) (1,142) (1,108) Net Interest Charges . 56,343 55,245 55,183 7 . Income (Loss) Before Cumulative Effect of Change in Seabrook Plant Accounting (203,237) 55,273 - (87,036) - Cumulative Effect of Change in Seabrook Plant Accounting (Note 3) - - (398,651) ~
. Net income (Loss) (203,237) 55,273 (485,687)
Preferred Dividend Requirements (Note (b), Statements of Capitalization) - 3.084 40,980 Earnmgs (Loss) Available for Common Stock $(203,237) $ 52,189 5(526,667) Weighted Average Common and Common Equivalent Shares (000's) 40,089 48,134 37,194 Earnings (Loss) Per Common and Common Equivalent Share Before Cumulative Effect $(5.07) $1.14 $ (3.44) Cumulative Effect of Change in Seabrook
' Plant Accounting (Note 3) - -
(10.72) Net locome (Loss) $(5.07) $1.14 $(14,16) Se accompanying Notes to Financial Statements 27
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+ .
. . , i "2 a '
PUBLIC SERVICE COMPANY OF NEW HAMPSHIREL ' SU$f [, hl l h w BALANCE SHEETS F,i > ASSETS , * 'f-W t- j
, kijg December 31, ,(
December 31.- wi , - ~ < 1989- 4 Pro Forma - ,1989" , 1988
@l y , s (Note 11 ' . .
Actual L_ = Actual'
< a (1housands of Dollars) . .
o _ Utility Plant at Cost . . LL, Electric Plant ' .
$1,024,904 .$1,024,904 - $ 977,173 less: Accumulated Provision for Depreciation 343,810 343,810: 318,345 'i
( 836,540 tj fp Regulatory Aaset . - -
%s 1,517,634. 681,094 . 658,828 Unfinished Construction:
Ms Seabrook (Notes 2 and 3) 700,000 '1,529,210 ' 1,794,823' M Other 1,290 1,290> : 11,8711 <
@W Total Unfinished Construction 701,290 2,218,924 1,530,500.
2,211,594 1,806,694
. 2,465,522 '
- Net Utility Plant -
ny .
-u Q . investments
,W;~ Nuclear Generating Companies 12,102 12102
, 12,131 O
' Real Estate Subsidiary 9,172 9,172 9,0991 j
- 155-
' ,
- Other, at Cost . 155 1551 -)
21,429 21,429 W[ , . 1 Totallnvestments 21.385 s; h A]-. ,
; Current Assets Cash and Temporary Investr 'nts .
- ; 44,138 94,830
']1 W<'M l Accounts Receivabic (Net of Allowance of $1,581 .
63,159 57,122 j in 1989 and $1,536 in 1988) 63,159 T Unbilled Revenue 17,670 17,670 -16,740 !!
+
Fuel, Materials and Supplies, at Cost 37,922 37,922 ~ 26,448
> Deferred Fuel Costs ' 13,738 13,738 -
Other 17,991 .I7,991 8,094-150,480 194,618 203,234 0 t*m a TotalCurrent Assets h * , l'Otsr Assets 4:A - Deferred Charges 7,700 14,911 . 12,682
,y Other 38,344 4,%9 %5 46,044 19,880 13,647 ..j lit'
- Total Other Assets .
1,
$2,436,877 $2,447,521 . $2,703,788 -
i (lw ,, q 4 & ;-: ; i > ~>~ e , a t i
.h
%1 See accompanying Notes to Financial Statements n
A .. 28 m , , , QNb{l ' .
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'. )
(
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f PUBLIC SERV!CE COMPANY Gl ?NEW H AMPSHIRE (
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Uf BALANCE SHEETS ,
- CAPITALIZATION AND LIABILITIES 1
December 31,
.1989 - December 31.
Pro Forma 1989 1988 .. Actual - I (Note 1) : ' Actual (Thousands of Dollars)
'i, Capitalization (See separate statements) .
Common Stock Equity - $ 644,000 $ 113,998 : - $ 293.335 ' :
~ Prefered Stock ;
. With Mandatory Redemption Requirements 125,000' 420,613 420,613
~Without Mandatory Redemption Requirements . 48,587 48,5 %
Long-Term Debt 1,533,838 - - Liabilities Subject to Settlement Upon + j Reorganization (Notes 5 and 7) - 1,691.115 1,675.250 ;
. Total Capitalization , 2,302,838 2,274,313 ; 2,437,794 Cunent Liabilities Estin.ated Future Seabrook Expenditures (Note 3) - 12,669 -102,519 5,',025 -30,776:
~
Accounts Payable . , 54,025 Seabrook Comprehensive Settlement (Notes 2 and 3) - 7.344 - Accrued Pension Costs 16,825 6,9 W 6,935 Accrued Interest - 7,812 7,869
., ( ,- ;
L1 Estimated Cancellation Costs for Seabrook Unit 2 12,345 12,345 .12,795 i Other. 14,095 14,095 ' 18,421 -F Total Current Liabilities : 97,290 135,759 179.315 Defened Credits 16,669 ' 16,669 17,243 ' ( Accumulated Deferred Investment Tax Credits (Note 6) Accumulated Defened Taxes on income (Note 6) . - 700 66,333 Deferred Seabrook Comprehensive Settlement (Notes 2 and 3) 16,000 16,000 - Other' 4.080 ~ 4.080 3,103 Total Defened Credits 36,749' 37,449 86,679- Q i
- Commitments and Contingencies (Notes 1 and 2) - -
$2,447,521 $2,703,788
- $2,436,877 1 4
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See accompanying Notes to Financial Statements 29
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' C. PUBLIC SERVICE COMPANY OF NEW H AMPSHIRE -
W' STATEMENTS OF CAPITALIZATION December 31 - l 1212 128.8 -
- (Thousands of Dollars)
- l. ~
L Common Stock Equity o Common Stock $5 Par Value (a) Authorized 60,000,000 Shares '
~ Outstanding . 42,154,548 Shares in 1989 and i
$186,006 b ,
( 37,201,127 Shares in 1988 Other Paid-in Capital
$210,773 -
435,420 436,287 - I
' Accumulated Deficit (532,195) (328,958)
Total Common Stock Equity 113,998 293.335
- 1
, . Cumulative Preferred Steck l Par Value $100 Per Share Authorized 1,350,000 Sharts )
. Outstanding 614.270 Shares Par Value $25 Per Share . Authorized 14,000,000 Shares
- Outstanding 10,400,000 Shaies -l Shares
,1 Dir,idgad Par Value Outstanduur Call Price J
' With Mandatory Redemption Requirements (b)(c) .I 7.64 % $100 120,000 $103.57 15,622 15,622 L 9.00 100 158,400 104.50 21,472 21,472 :~
25 1,200,000 26.40 43,320 43,320
~l1.24 J 17.00 25 1,200,000 28.19 50,I46 50,I46 1 15.00 25 1,200,000 27.81 47,776 47,776 25 2,400,000 27.90 %,595 96,595 S 15.44 52,974 52,974 13.00- 25 1.400,000 27.17
'13.80 25 2,400,000 27.30 92,708 92,708 e i 420,613 420,613 'l Without Mandatory Redemption Requirement's (b) 3,35 % $100 102,000 $100.00 10,200 10,200 4.50 100 75,000 102.00 7,500 7,500 l 5.50(Convertible) 100 8,870' 100.00- 887 8%
7.92 800 - 150,000 101.98 15,000 15,000 l 25 600,000 26.25 15,000 15,000 11.00 48,587 48,5 % Total Cumulative Preferred Stock Net $469,200 $469,209 l l l l See accompanying Notes to Financial Statements and to Statements of Capitalization 9J j 1 30 I i l I. . , _ - - -
y PUBLIC SERVICE COMPANY OF NEW H AMPSHIRE-STATEMENTS OF CAPITALIZATION l s .M. M Long Term Debt _ (Thousands of Dollars); First Mortgage Bonds ' . _ Series. Rate Maturity _ M ' 4 5/8% - 1992 $ 20,805 $ 20,805 N 61/8 1996 14,957 : 14,957 O 61/4 1997 13.381' 13,381-P 71/8- 1998 13,491 13,491 Q 9 . 2000 17,934 -18,2621 R, 75/8 2002 18,381 18,381 S 9 2004 18,480 18,719 V. 91/8 2006 14,156 14,296 i ' W 10 1/8 1993 9,658' - 9,658* ' X 12 1999 9,126' 9,126 0 Y- 18 1989 24,135* 24,135*i .
-Z- Variable 1991 10,080* 10,080* !
7 43D 185.291 'j Less: First Mortgage Bonds (*) Pledged as Security for 'i General and Refunding Mortgage Bonds . (52,999)' (52,999) , !' Total First Mortgage Bonds _, 131,585 132,292 e Bonds General and Refunding A Mortgaf01/8% 1993 32,700 32,700. B 12 1999 60,000 60,000- l C 141/2 2000 30,000. 30,000 D 17 1990 23,000 23,000 50,000-E 18 - 1989 -- H Variable 1991 ~ l12,500 " - ., 1 11 1994 50,000 . - O .J Variable 2019 Less: Ganeral and Refunding Mongage Bonds (") Pledged as Security for: Nuclear Fuel Obligation, Eurodollar Term 112,500" ~ :!' Loan and Promissory Note due 1991 - (112,500)- .! Pollution Control Revenue Bonds due 2019 (112,500) -
, Third Mortgage Bonds i A 13 3/4 % 1996 225,000 . 225,000- i
.B 10 1/2 2016 100,000 "
- 100,000 "
- Less: Third Mortgage Bonds ("*) Pledged as Security for Pollution Control Revenue Bonds (100,000) (100,000) l Nuclear Fuel Obligation, due 1991 - 45,000- f Eurodollar Tenn Loan, due 1991 - 45,000 Promissory Note, due 1991 - 22,500 Pollution Control Revenue Bonds '
12 1/4-13 3/4 % 1988-2003 20,000 20,000 10 1/2 2016 100,000 100,000 Variable 2019 112,500 - Debentures 15 3/4 % 1988 75,000 75,000 14 3/8 1991 100,000 100,000 15 2003 100,000 100,000
- 17 1/2 2004 400,236 425,000 Promissory Note,due 1988 18,437 18,437 Total Long-Term Debt 1,478,458 1,503,929 ,
Less: Unamortized Premium and Discount (100,694) (104,171) 'i 1,377,764 1,399,758 Amount Reclassified to Liabilities Subject to Settlement Upon Reorganization 1,377,764 1,399,758 Liabilities Subject to Settlement Upon Reorganization (Note 5) 1,691,115 1,675 250 Total Capitalization $2,274,313 $U3Y,7M See accompanying Notes to Financial Statements and to Statements of Capitalization 31
4 a , x ~ J' PUBLIC SERVICE COMPANY OF NEW H AMPSHIRE
. NOTES TO STATEMENTS OF CAPITALIZATION _ i ,
i ! (a) in 1984 the Company issued 18,375,000 warrants allowing the holders to purchase a share of Common Stock at an exercise price of $5.00 per share.The Warrants expire in 1991,' Although the exercise of warrants was suspended in June of 1986, limited exercise of the Warrants,through the exchange of the Company's 17.5% Debentures due 2004, for common j stodt was allowed for a 120 day period in 1989.13,420,199 Warrants remained outstanding at December 31,1989. See { j Note 10 of Notes to Financial Statements.
- (b) The Company ceased paying dividends on shares of its Common and Preferred Stock in 1984. Until the ("vidend j i
arrearages with respect to shares of tne Pre ferred Stock are cured, the holders thereof will continue to have the right to elect a majority of the Company's Board of Directors, a right which they have exercised since 1985. The Company ceased accruing dividends on all series of Preferred Stock on January 28,1988, the date of the filing of the voluntary petition for -
. protection under Chapter il of the United States Bankruptcy Code, resulting in a reduction of $41.0 million and $37,9 i million in preferred dividend requirements for 1989 and 1988, respectively.
The Plan, and any other reorganization plan, confirmed in the Chapter 11 case will result in substantial alteration or j elimination of some or all of the current rights of the holders of shares of Common Stock and Preferred Stock. The dilution j
' in equity interests that will be suffered by holders of Common Stock and Preferred Stock in any reorganization, including
~
.under the Plan,is likely to be extensive. The table below indicates the amounts of dividends in anears as of January 28, 1988 when the Company ceased accruing preferred dividends:
Dividend Bate Jhatsa Per Share . Intal q_ With Mandatory Redemption Requirements: ~1 j (Classifiedin Preferred Stock) 7,64 % 120,000 $30.180 $ 3,621,606 - -1
- 9.00 158,400 35.552 5,631,503 l 11.24 1,200,000 11.100 13,320,3 %
17.00 1,200,000 16.789 20,I46,371
~15.00 1,200,000 14.813 17,776,210 3'
15.44 - 2,400,000 15.248 36,595,290 13.00 1,400,000 12.838 17,973,723 13.80 2,400,000 13.628 32,708,227
-$147,773,236 ;
Without Mandatory Redemption Requirements: (Classified in Retained Earnings) 3.35 % 102,000 $13.233 $ 1,349,806 4.50 75,000 17.776 1,333,216 5.50 (Convertible) 8,870 21,727 192,714 d- 7,92 150,000 31.286 4,692,919 11.00 600,000 10.863 6,517,944
' $ 14.086.599 (c) The Company ceased making sinking fund payments on preferred stock with mandatory redemption requirements in 1984. Any amounts payable to holders of Preferred Stock are subject to settlement upon the confirmation of a reorganization plan.
9 See accompanymg Notes to Financial Statements
, 32
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PUBLIC SERVICE COMPANY OF NEW H AMPSHIRE
. STATEMENTS OF CASH FLOWS =
For'the Year Frvlad December 31. M M M (Thousands of Dollars) [ I Income (Loss) Before Cumulative Effect of Change in Seabrook Plant Accounting. $(203,237) $ . 55,273
$ (87,036).
- Non-Cash items included in income (Loss):
Depreciation ~ 34,045 . 32,690 31,3 % M Allowance for Equity Funds Used During Construction (454) (598): (1,183) Amortization of Debt Premium, Discount and Expense 1 ,438 1,758 7,666 Defernd Taxes and Investment Credit Adjustments (66,207) 37,305 (69,591). ; 241,452 Losses on Generating Projects 336,472; - Seabrook Comprehensive Settlement Payments (26,144) - - i7 if: Gains on Sale of Properties (258) (1,124) .- L Changes in Operating Assets and Liabilities
- Curant Assets Other*Ihan Cash l
and Temporary Investments - (42,%I) (4,352) - (23,939). l- Accounts Payable ' 24,215 35,667 :(11,985) Accrued Pension Costs (591). 783 11,485 l: 25,071. 27,780; -15,188 1 l- Accrued Interest l Other Current Liabilities (4,776) 6,719 (1,940) , l
'Defernd Charges - (4,810) 3,046 " '(17,051) -
Other Net ' (4,916) -(1,937) 13,002 Net Cash Provided by Operating Activities 66,887 193,010 107,464 z t l - ' %.) i e Cash Usedin Investing Activities 5 . Capital Expenditures (Net of Allowance for
! Equity Funds Used Dunng Construction) (135,242)* (143,076)* (294,691)
I, u- Change in Accrued Interest Investing Activities 16,369 24,450- 46,836 i Disposals of Property, Plant and Equipment 1,702 1,180 2,947 (' Net Cash Used in investing Activities (l I7,17 !) (l I7,446) (244,908)-
? .
Cash Provided by (Used in) Financing Activities i' Proceeds of Long Term Debt 162,500 - ,
. Redemptions of Long Term Debt (162,908) (112) (5,719) l L
Proceeds of Short Term Debt - - 100,000 Net Cash Provided by (Used in) Financing Activities (408) (112) 94,281 Net Inenase (Decrease)in Cash and Temporary Investments (50,692) 75,452 (43,163) Cash and Temporary Investments at Beginning of Year 94,830 19,378 62,541 l' Cash and Temporary Investments at End of Year $ 44,138 $ 94.830 $ 19,378
- Includes $92.8 million and $109.5 million charged to Estimated Future Seabrook Expenditures liability in 1989 and 1988, sespectively, Q/
See accompanying Notes to Financial Statements 33
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- PUBLIC SERVICE COMPANY OF NEW. H AMPSHIRE - M
~ STATEMENTS OF CH ANGES IN COMMON STOCK EQUITY < .
' For The Three Years Ended December 31,1989 i- -
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Other : Retained J Amount at Paid In - Eamings Shares Par Value . Capital . (Deficit) . Inlal (%ousands of Dollars) 4 Balance - December 31,1986 ~ 37,193,896 $185,969 $436,218. $ 141,680 $ 763,867
' . Add (Deduct) y ' ' Net Loss - '(485,687) (485,687).
330 .2 ~3'- 5- 9' Issuance of Common Stock Dividend requirements for Preferreo , Stock with mandatory redemption . (37,408) (37,408): requirements . _37,194,226' $185,971 ..$436,221 $(381,415) $ 240,777 ~ Balance ~- December 31.1987. 1 Add (Deduct) G,z73 : 55,273 Net income Issuance of Common Stock i 6,901 35 :66 101 Dividend requirements for Preferred - Stock with mandatory redemption requirements (Note (b) Statements . . , (2,816) J - (2,816) of Capitalization) _ Balance . December 31,1988 37,201,127 $186,006 $436,287 $(328,958) $ 293,335. l _.! Add (Deduct): (203,237) (203,237)- Net Loss ' 4,953,421 - 24,767 (867) 23,900 lasuance of Common Stock 4 Balance . December 31,1989 $210,773; $435,420 . $(532,195) $ I13,998 42,154 $_] q 4 See accompanying Notes to Financial Statements 34 _ _ - - _ _ _ = _ = _ _ _ _ _ _ _ _ _ _ _ _ _ :
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- PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE '
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, NOTES 'IO FINANCIAL STA'1T.MENTS .
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- 1. The Company's Bankruptcy i 1N HE The Filing. On January 28,1988, the Company filed a voluntary petition for reorganization under Chapter il of the L United States Bankruptcy Code.
The financial difficulties that led to the Company's bankruptcy were attributable to a combination of several factors:
@ the magnitude of the Company's investment in the Seabrook Nuclear Generating Station Unit 1 ("Seabrook"), which s represents more than half of the book value of the Company's assets on its financial statements; the delay in obtaining 1 h approval of the operation of Seabrook from the Nucleat Regulatory Commission ("NRC"); and the prohibition under New -
< , Hampshire law of the realization by the Company of any cash income from or retum on that investment until Seabrook-provides service to customers (the so-called anti.CWIP statute). In January 1988 the New Hampshire Supreme Court h RI upheld the anti CWIP statute and prevented the New Hampshire Public Utilities Commission ("NHPUC") from l considering the Company's request for emergency rates, which were an essential element of the Company's efforts to l i.g ,
achieve a financial restructuring outside of Chapter i1. _ d -
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-1 The Conduct of the C' h' apter 11 Case. Since the filing of the petition for reorganization under Chapter 11, the Company has continued normal operations as a debtor in-possession under the protection and subject to the jurisdiction L of the Bankruptcy Court, and subject to approval by that Court of transactions not in the ordinair course, n
jgs Two official committees represent the interests of the Company's unsecured creditors including debenture holders and L tnde creditors (the " Unsecured Creditors Committee") and the Company's equity secerity holders, including Preferred U and Common stockholders and Warrant holders (the " Equity Committee")in the reorganization case. The Bankruptcy Court granted the State of New Hampshire (" State") full party in interest status in the case. The State has actively-l represented the interests of ratepayers in the case and panicularly in negotiations toward a reorganization plan. 7
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' The Plan of Reorganization L The goal of a Chapter 1i reorganization case is a reorganization plan which resolves all claims against and equity yi interests in the reorganizing company, Since shortly after the filing of the Chapter 1I case, the Company engaged in ;
f ? negotiations with the State, the two Committees, and others to develop a plan that is supported by all of the major parties in the case. During the same period, others have attempted to do the same,includmg Northeast Utilities ("NU"), New l~ England Electric System, and The, United Illuminating Company, all of which sought to acquire or merge with the lij ' Company under a reorganization plan. On December 13,1989, the Company announced its support for a plan (the " Plan") y , proposed by NU and also supported by the two Committees the majority in amount of holders of the Company's Third 3 t Mortgage Bonds (and obligations secured by those bonds), and the State. NU is a registered public utility holdmg company with operations in Connecticut and Massachusetts. On April 20,1990 the Bankruptcy Court confirmed the Plan. (See l, " Confirmation of the Plan", below). t [ The Rate Plan, De Plan is based on an agreement (the " Rate Plan") regarding rates and power supply between Northeast Utilities Service Company ("NUSCO"), an NU subsidiary, on behalf of NU, and the Govemor and the Attomey General of the State of New Hampshire, on behalf of the State. The New Hampshire legislature approved the Rate Plan ' on December 14,1989, subject to NHPUC review The Rate Plan, which pemiits a departure from the anti CWIP statute, provides for seven annual 5.5% increases in the Company's retail rates, commencing January 1,1990. The first increase
~
has already been implemented, and the amounts collected are currently being held in escrow, subject to final approval and effectiveness of the merger described below, except as to amounts to be collected from the later of final approval or Julyt , 1990 through the Effective Date of the Plan, discussed below. The effectiveness of the Rate Plan is contingent upon NHPUC approval. The Rate Plan will be effective for Reorganized PSNH even if the merger with NU is not consummated. s The Plan. The Plan provides for the acquisition of the Company by NU in either a one step or two-step transaction. O depending on when certain regulatory approvals for the acquisition are obtained, and the distribution of up to $2.3 billion
.V in cash and securities on the date (the " Effective Date") the Plan becomes effective and the Company emerges from reorganization as Reorganized PSNH. De Effective Date deadline specified in the Plan is August 1,1990, but the Plan 35 i;
1 i PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE NOTES'!D FINANCIAL STATEMENTS (Continued) i pennits the deadline to 10 extended by the agreement of NU and the two Committees.-
- There are certain conditions to the Effective Date, including certain tax rulings, allowance in the reorganization case q of not more than $900 million in unsecured claims against the Company, and certain regulatory approvals. 'the regulatory approvals required for the Plan to become effective include the NHPUC's approval of the Rate Plan and the issuance of ,
accurities of Reorganized PSNH, the approval (or waiver ofjurisdiction by) the Connecticut Department of Public Utility _ Controf with respect to securities issuance, and the approvals of certain transitional management arrangements, discussed I below, by the Federal Energy Regulatory Commission ("FERC") and the United States Securities and Exchange Commission ("SEC"). 'the Company believes that these conditions can be met by the August I deadhne or shortly - q therenhet. 'Ibe PERC and the SEC have already approved the transitional management arrangement, and the NHPUC has set a hearing schedule that would result in its rendering a decision by early to midsummer 1990.
'ne Acquisition of the Company by NU. The Plan provides for NU's ultimate acquisition of the Company through j
the Company's merger with a wholly-owned subsidiary of NU that is to be formed solely for the purpose of effectuating the acquisition. At the time of the merger (or as soon thereafter as practicable) the Company's interest in Seabrook will .! be transferred to a newly formed subsidiary of NU, North Atlantic Energy Company ("NAEC"), whose sole asset will be -! the Company's Seabrook interest. NAEC will enter into a contract with reorganized PSNH under which Reorganized PSNH will purchase the entire output of NAEC's interest in Seabrook for the life of the Seabrook license. Another NU subsidiary would be appointed as operator of Seabrook if required approvals of the Seabrook Joint Owners and the NRC are received. _l These transactions require regulatory approvals of the FERC,the SEC, the NRC, and the public utility commissions of New Hampshire and Connecticut, and perhaps of Maine and Vermont, where the Company owns certain properties. Filings for approvals of the FERC and the SEC were made by NU in J anuary 1990. Some sixty intervenors, including many New England utilities and all of the regulatory commissions and certain other officials of the New England states, have :) appeared in the FERC proceeding and have raised various issues in those proceedmgs, including certain an:itrust and anticompetitive issues. A lesser number of intervenots, some of whom are also intervenors in the FERC proceedings, have appeared in the SEC proceedings and raised issues similar in large part to those raised before FERC. l If all regulatory approvals for NU's acquisition of the Company are obtained by the Effective Date,then the acquisition will occur on the Effective Date (the one-step transaction). Otherwise, the Company will emerge from reorganization as a stand alone company, subject to a contractual obligation to be acquired by NU (the two-step transaction) upon the satisfaction of certain conditions. In the two-step transaction, holders of unsecured claims and of shares of the Company's i existing Preferred and Common Stock will receive shares of Common Stock of Reorganized PSNH. When the acquisition ultimately occurs, holders of shares of Common Stock of Reorganized PSNH will receive not less than $20 per share,in cash, and NU will acquire all shares of Reorganized PS NH's Common Stock. B ased upon the current schedule in the FERC proceeding,it appears likely that the acquisition of the Company will be accomplished as a two-step transaction, Distribution to Creditors and Shareholders Under the Plan. Under the Plan, all holders of secured claims (other than two existing issues of pollution control revenue bonds in the amounts of $100 million and $112.5 million,which may be assumed and reinstated by Reorganized PSNH under the Plan) will receive cash in the full amount of their claims for principal, interest,andinterest on interest. Holders of unsecured claims will receive cash and,if the acquisition is a two step transaction, shares of Common Stock of Reorganized PSNH Holders of shares of existing Preferred and Common Stock of the Company will receive notes that are contingent on Seabrook's achieving certainlicensing and operational milestones and either cash and warrants to purchase shares of NU Common Stock,if the acquisition is a one step transaction, or shares of Common Stock of Reorganized PSNH and certificates entitling the holder to receive warrants to purchase shares of NU Common Stock when (and if) the acquisition by NU occurs,if the acquisition is a two-step transaction. Holders of the Company's outstanding Warrants (and any claims arising with respect to such Warrants) will raceive in the aggregate .
$1.3 million in cash. The total amount of cash and face amount of securities (including the contingent notes) to be distributed to creditors and equity holders under the Plan is approximately $2.3 billion.
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/?b- ' PUBLIC SERVICE COMPANY OF NEW H AMPSHIRE NOTES TO FINANCIAL STATEMENTS (Continued) l l 3 Qf ) y 5
- . .. f >p ConArmation of the Plan. On January 3,1900, de Bankruptcy Court formally approved a disclosus statement for ;
g the Plan, ordered the Plan, the disclosure statement, and ballots for the Plan transmitted to all of the Company's creditors - and equity security holders, and set April 4,1990 as the date for commencing hearings on confirmation of the Plan.' On (, April 20,1990, following six days of hearings, the Bankruptcy Court entered orders overruling all objections to 7 T confirmation, finding all conditions to con 6rmation set forth either in the Bankruptcy Code or in the Plan satis 6ed, and confirming the Plan (the " Confirmation Order").' ! Transitional Board of' Directors and Management. The Confirmation Order provides, consistent with the' provisions of the Plan itself, that upon confirmation, all of the directors of the Company are deemed to have resigned, j
- without further action by any person or entity, effective at 8:00 a.m. on April 30,1990. A new, seven-member board will take of6ce then. Three members were appointed by the Equity Committee, three members by the Unsecured Creditors - l 7 . Committee and one member was jointly appointed by both Committees. Each of the Creditors Committee appointees are i- ; also members of the Creditors Committee; each of the Equity Committee appointees are also members of the Equity .
Committee.- No current directors or officers are among the new Board appointees. The new Board will serve until the acquisition is consummated. The new directors, their current affiliations, and their sources of appointment are: Affihation Anoointed by l MAGLc a Joseph P. Tyrrell(Chairman) Former Officer of Boston Edison Joint Committee James K. Arthur Certified Reporting Co. Equity Committee . Douglas A. Barry Monarch 1.ife Insurance Co. Equity Committee - l Nowell A.Blake Mutual Benefit Life Insurance Co. Equity Committee . j Stephen Davis IBJ Schroder Bank & Trust Company Creditors Committee l j[- ~ James D. Neidhart Equitable Capital Management Co. Creditors Committee
#? Anthony Ben Walsh Private Investor Creditors Committee t
1 : (
; in addition, a separate order of the Bankruptcy Court, entered April 13,1990, provides, consistent with the provisions - l q 4 of the Plan itself, and subjeet to FERC and SEC approvals (which have already been obtained), that a Management Services Agreement (the "MSA") between the Company and NUSCO will take effect at 8:00 a.m. on April 30,1990, under which l the Company will be managed by NUSCO from then until the acquisition is completed or is terminated, whiche <er occurs first. The Plan provides that the Chief Executive Officer and each Senior Vice President of the Company will be deemed j to have resigned, without further action by any person or entity,60 days after April 30,1990, or sooner, at the option of -i the Company on 30 days notice at any time after confirmation, but in no event later than the acquisition date. The Plan,-
the Confirmation Order and the MS A contemplate that the new seven member board will select the officers of the Company . ,
- ? to serve until the acquisition. The Chief Executive Officer and each Senior Vice President have tendered their resignations 1 '
as officers, effective 8:00 a.m. on April 30,1990. NUSCO advised the Bankruptcy Court during the tonfirmation hearing that the new Chief Executive Officer of the Company would be aon E. Maglathin. a retired executive of Westem Massachusetts Electric Co. (an NU subsidiary) and that the new Secretary / Treasurer would be Bruce W. Wiggett, who is , 1 currently Comptroller of the Company. 'Ihese new officers, however, have not yet been appointed by the new board. In view of the total change in control of the Company,its Board, and its management on April 30,1990, there can be no assurance that any of the Company's existing policies or practices or any aspect ofits business operations will remain %' unchanged on or after April 30,1990. o Risks. There can be no assurance that any of the regulatory approvals required for the Effective Date of the Plan or k, for the acquisition will be obtained within the deadlines established in the Plan. Opposition to the Rate Plan and to the
't acquisition has already been filed by intervenors in the regulatory proceedings for approval of the Rate Plan and the j
+ i acquisition. Unless all Effective Date conditions are satisfied. including financing arrangements reasonably satisfactory I A to NU, and all necessary regulatory approvals are obtained, the Plan will not become effective. Even if the Plan does l become effective, if the requisite approvals for the acquisition by NU are not obtained, the acquisition will not occur. y 37 l
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PUBLIC SERVICE COMPANY OF NEW H AMPSHIRE NO1TS TO FINANCIAL STATEMENTS (Connnued) ,
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_n if the Plan does not become effective,it will be necessary for the Company to seek to achieve another reorganization plan. The Company cannot reasonably predict whether or when it will be possible to achieve such a plan or what the terms of any such plan might be. If the Plan becomes effective but the acquisition is not consummated, Reorganized PSNH would be operated as a stand alone company under the applicable provisions of the Rate Plan. - Speculative Nature of the Company's Securities ;j Equity Interests, la view of the uncertainty over effectiveness of the Plan and the consummation of the acquisition contemplated under the Plan and over the outcome of the Chapter 11 reorganization case if the Plan and the acquisition were not consummated, the value of the Company's outstanding equity securities is highly speculative. The Company ceased paying dividends on its Common and Preferred Stock in 1984. The Plan, or any other reorganization plan confirmed in the Chapter 11 case, will result in substantial alteration or elimination of some or all of the current rights of the holders of shares of Common and Preferred Stock. The dilution in equityinterests that will be suffered by holders of shares of the ; Company's Common and Preferred Stock in any reorganization,includmg under the Plan,is likely to be extensive. , F Unsecured Indebtedness. The Company has not paid interest on its unsecured indebtedness since October 1987 and does not anticipate that it will resume interest payments before emergence from reorganization. Upon emergence,it is likely that the rights of holders of unsecured claims will be substantially altered, and the holders will likely receive cash and other securities in satisfaction of their claims. If the Effective Date of the Plan does not occur, the Company cannot predict what form or amount of distribution the holders of unsecured claims will receive in the reorganization. .. i Secured Inddtedness, Cash flow concems could result in the suspension of the payment of interest on some or all
' of the Company's secured indebtedness. If the Effective Date of the Plan does not occur,the Company cannot predict what - 1 l
form or amount of distribution the holders of secured claims will receive in the reorganization. (See " Cash Flow -l LI Concems").
' Proforma Effects of Proposed Reorganization ~1 i
- The proposed plan of reorganization (the " Plan") and the underlying agreement reganting rates between Northeast Utilities ("NU") and the State of New Hampshire (the" Rate Plan") are assumed to be approved without modification by the Bankruptcy Court (which has already occured) and other necessary regulatory agencies. Absent such approval, it is i l
l l expected that the Cornpany would file a rate case with the New Hampshire Public Utilities Commission for Seabrook ! recovery and attempt to formulate a new plan of reorganization.-
- Conditions to the Effective Date of the Plan state that the aggregate petition date amount of general unsecured claims ,
not exceed $900 millico. There is no assurance that the aggregate amounts of the allowed claims in these classes will ) be less than $900 million, and if the aggregate amounts of allowed claims exceed that amount, the reorganization of the Company under the Plan will not occur unless the condition is waived by all parties to the Plan. The Plan and the related pro forma balance sheet assume $857.4 millionin general unsecured claims. It is also assumed that all the contingencies
, relating to the Contingent Notes will be met, allowing the notes to be honored at their full face amount of $205 million.
The common stock of Reorganized PSNH is assumed to be owned by shareholders who prior to confirmation of the Plan owned less than 50% of the Company's Common Stock. Reorganized PSNH is assumed to emerge from the Company's l reorganization as a party to an agreement of merger with NU. There is no assurance that the merger will be consummated. This pro forma balance sheet does not reflect that merger. lf the reorganization contemplated by the Plan was consummated at December 31,1989, the pro forma impact on the balance sheet would be as follows: b e 38 L ;___ __._ ..
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" j PUBLIC SERVICE COMPANYOF NEW HAMPSHIRE. '
. NOTES TO FINANCIAL STATEMENTS (Corsinued) o,
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. , , BALANCE SHEETS AT DECEMBER 31,1989 :
1 Pro Forma Reorganization - Reorganized - Actual ' >' Adiustmente , PSNH = (Thousands of Dollars) .t ASSETS'
]
d Utility Plant at Cost - .,; Electric Plant $1,024,904 $- ;- $1,024,904 %
.less: Accumulated Provision for Depreciation 343,810: - 343,810 >
' Regulatory Asset -- 836,540 (a) 836,540 ;il Unfinished Construction: _ .l Seabrook 1,529,210 (829,210) (b) ' -700,000 g Other4 1,290 - 1,290 t
Net Utility Plant 2,211.594, 7.330 2,218,924
..s Investments - 21,429 21',429 e Current Assets :;7 Cash and Temporary Investments - 44,138 (44,138)(c) -- 1 Accounts Receivable Net : 63,159 63,159 '!
Other Current Assets Net 87,321 87,321. ,, Other Asset.s g
.A Defened Charges 14,911 (7,211) (d) : 7,700-m' i Other 4,%9 33,375 (e) . '38,344 ' n
. $2,447,521 $ (10,644). $2.436,877 j
.4 . .
R 4 . CAPITALIZATION & LIABILITIES M y Capitalization .
"]
Common Stock Equity . . . Common Stock = $ ' 210,773
$ 433,227 (O ~ $ 644,000 ..
435,420 (435,420) , i.] Other Paid in Capital ' - Retained Earnings - ~(532,195) 532,195- - T Total Common Stock Equity 113,998 530,002 644,000-
]
- Preferred Stock 469,200 (344,200)(O 125,000 ni Liabilities Subject to Settlement Upon Reorganization 1,691.115 (1,691.115)(O .
N Pollution Control Revenue Bonds - 212,500 (g) . ~ 212,500 - First Mortgage Bonds - - 612,500 (h) 612,500 Term Loans - - 503,838 (h) .503,838 s Contingent Notes - 205,000 (O 205,000 'j Total Capitalization 2,274,313 28,525 2,302,838 1 Accounts Payable 54,025 54,025 Other Current Liabilities '81,734 (38,469)(i) 43,265
' Deferred Credits Accumulated Defened investment Tax Credits 16,669 16,669 Accumulated Defened Taxes on income 700 - (700)(j) -
Other 20.080 20,080 'I
$2,447,521 $ (10,644) $2,436,877 (
't See Assumptions and Notes to Pro Forma Balance Sheet 39
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( d< l 1 PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE 'l
' NOTES TO PINANCIAL STATEMEffr5 (Continued) - l l '. ,
( : Amaumptions and Notes For Pro Forma Balance Sheet:
- a. - To record a regulatory asset allowed under the terms of the Rate Plan. The regulatory asset is calculated as the .
l
. difference between the amounts paid by Reorganized PSNH to former creditors and equity accurity holders in excess of tlw non-Seabrook net assets of Reorganized PSNH and the value assigned to Seabrook. Reorganized PSNH will apply Statement of Financial Accounting Standards No. 71. " Accounting for the Effects of Certain- 5 i! ;c Types of Regulation" for all assets. See Note 3.
J , b. To reduce Seabrook value to $700 million, the amount of recovery permitted in the Rate Plan. The Rate Plan i includes a phase in of the Seabrook value which will allow Reorganized PSNH to apply Statement of Financial Accounting Standards No. 92, " Regulated Enterprises - Accounting for Phase-In Plans". Taken as a whole, the
- effect of the Rate Plan is not detrimentally different than recovery of approximately $1.5 billion for Seabrook ;
under traditional rate making.
~
- c. Cash is reduced to reflect estimated amounts to be paid to creditors ($10.7 million) and amounts paid for administrative costs and expenses of the Plan ($33.4 million),
- d. Unamortized debt expense ($4.3 million) associated with debt issues repaid under the Plan is eliminated and nuclear fuel purchase contract termination charge ($2.9 million)is climinated because recovery is not specifically ' i provided for by the Rate Plan. l l
- e. To reflect the cash reserved for payment of administrative costs and expenses of the Plan.
f' ' Holders of secured claims, other than those described in g., below, will receive cash in the full amount of their claims for principal, interest, and interest on interest. The existing unsecured debt will be paid in cash and shares of common stock o f Reorganized PSNH, based on the principal amount outstanding less the original unamortized
-, discount plus prepetition interest and $110.6 million in post petition interest. Holders of shares of existing Preferred and Common Stock of the Company will receive notes that are contingent on Seabrook's achieving certain licensing and operational milestones, shares of common stock of Reorganized PSNH and certificates for warrants'to purchase shares of NU common stock when (and if) the acquisition by NU occurs.
- g. The two existing series of pollution control revenue bonds, totalling $212.5 million, are assumed to be reinstated 1
^
by Reorganized PSNH.
- h. To record the issuance of new debt securities issued to make the cash payments described in f., above.
- i. Pre petition accrued pension costs of approximately $9.9 million continue to be a liability of Reorganized PSNH. _ .
Approximately $7.9 million in post-petition accrued interest on the First Mortgage Bonds and General and Re funding Mortgage Bonds is eliminated due to settlement of these obligations upon reorganization. _ Since post. reorganization Seabrook capitalexpenditures are recoverable under the Rate Plan, Seabrook reserves for pre op . erstional expenditures of approximately $40.5 million, have been eliminated. j.' Based on net operating loss carryforwards expected to be available to Reorganized PSNH. no significant
' provisions for deferred income taxes are required as of December 31,1989. At December 31,1989 the Company had signi6 cant net operating loss ("NOL") carryforwards. See Note 6 " income Taxes". Due to the effects of ,
the reorganization, NOL usage may be limited so that some may expire unused. Additionally, the balance of NOL canyforwards may be reduced by as much as $155 million. O L
' 40
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* - PUBLIC SERVICE COMPANY OF NEW H AMPSHIRE H
. . NOTES TO FINANCIAL STATEMENTS (Continued) s
;bqu
- 2. Commitments and Contingencies .
l L The Company is the principal owner of Seabrook, a nuclear fueled steam generating plant located in Seabrook,'New
- Hampshire. At December 31,1989 the Company's investment in Seabrook represents more than half of the book value ' ,
of the Company's total assets on its financial statements. i l On March 1,1990 the NRC ordered that a license for the full power operation of Seabrook be issued, but granted
- additional time for intervenor groups to seek review of the decision. 'The Massachusetts Attomey General's Office, joined .
by two other long time intervenors in the licensing proceedings, asked the U.S. Court of Appeals for the District of _. q Columbia Circuit to stay issuance of the Seabrook full power license. On March I4,1990 that Court refused to block the issuance of the license, and on March 15 the license was issued. 1 Following neceipt ofihe full powerlicense, a 2 3 month start up testing and power ascension program of the Seabrook Plant has begun. This program involves a series of tests and reviews, including heat up of the reactor coolant system, reactor . , start up, testing at various power ascension levels, numeroes staged self assessment reviews, and NRC review and public f hearing after attainment of 50% power level and production t f electncity. Electric generation on a regular, consistent basis would begin upon completion of the start up and power ascension program, probably during the summer assuming no
~
unusual problems are encountered during the power ascension program. . In 1989, the Company recognized $50.8 million of expendtures associated with the Seabrook Comprehensive ~ 0 Settlement (see Note 3). Under the Seabrook Comprehensive Settlement, the Company agreed to pay to or on behalf of one of the Joint Owners, the Massachusetts Municipal Wholesale Electric Company.('lMMWEC"), its' share of . 7 pre operational funding commitments for Seabrook. MMWEC covenanted not to sue the Company for any alleged claims ( against the Company associated with Scabrook. MMWEC also agreed to a termination of an agreement under which thel Company might be required,upon operation of Seabrook,to purchase a share of MMWEC's Seabrook capacity and energy for a period of ten years at a cost substantially in excess of market price. Certain other Joint Owners, representing all but
- 2.5% of the ownership interests in Seabrook, also agreed to grant the Company covenants not to sue on any claims, in a
1
, exchange for cash payments or offsets.
The Company has substantial capital requirements to satisfy if it is to provide adequate service to its growing service ; area. The Company's construction program for the five-year period 19901994, exclusive of expenditures for Seabrook, is cunently estimaidd to be approximately $287,900,000. The Company's share of Seabrook related pre operational start. ., up testing and power ascension expenditures and of other capital expenditures once full power operation has been achieved are estimated for the period to aggregate $116,200,000, based on Seabrook's assumed operational'date for financial forecast purposes of May 1,1990. The Company anticipates that its obligation to pay up to $30 million of MMWEC's share of Seabrook related pre operational expenditures under the Seabrook Comprehensive Settlement, which have been made from intemally generated funds, will be completed in April 1990, at which time MMWEC is obligated to resume such i
- payments.' Certain Joint Owners have under consideration means to resolve the eventuality that MMWEC is unable on a temporary basis to resume pannents, j The New Hampshire Electric Cooperative ("NHEC"), a 2.17391% owner of Seabrook, acquired its interest from the Company pursuant to a series of letter agreements. Pursuant to these agreements, NHEC and the Company entered into q
- an agreement (the "NHEC Buyback Contract") under which NHEC has the right to sell to the Company, over a ten-year period, up to 250 megawatt-years of Seabrook capacity and energy entitlement at NHEC's " full cost". NHEC's " full ,
cost"is priced substantially in excess ofits current market price. The Company has sought to renegotiate the buyback arrangements. NMEC and NU have agreed to renegotiate various issues including termination of the NHEC Buyback Contract. Under the Limited Electrical Energy Producers Act ("LEEPA") and the Public Utility Regulatory Policies Act
~
- (' ("PURPA") and the regulations issued thereunder, an electric utility must purchase the entire electrical outputs of power from qualifying facilities ("Small Power Producers") located within its franchise area at the utility's avoided cost. In July
!: 1 41
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,r- - -- - - - . . _ _ _ _ - _ - - - - . - - _ _ . _ . _
f j - y - (- . Y ' PUBLIC SERVICE COMPANY OF NEW H AMPSHIRE NOTES TO FINANCIAL STATEMENTS (Cominued) 1984, acting pursuant to its authority under LEEPA and PURPA, the NHPUC established the long. term rates at which the I Ly Company was required to purchase power frorn Small Power Producers. Because the Company's actual and projected 1- avoided costs have declined substantially in recent years, due largely to a reduction in fossil fuel costs, the price that the i L Company pays for most of the power it purchases under NHPUClong term rate orders is, therefore, wellin excess ofits p avoided costs,
~ Under the Plan, NU will undertake its best effons to renegotiate the current arrangements between the Company and i b
I _ thirteen of the Small Power Producers currently operating under the Small Power Producer rate orders. The State has agreed ' H l to support NU in such efforts and its effort to have the NHPUC examine the rates currently paid by the Company to these thirteen Small Power Producers. NU does not seek rejection of any of the arrangements currently in place with the Small - 1 Power Producers. 3, Change in Seabrook Accounting and Losses on Generating Projects The Company's Snancial difficulties are attributable to a combination of several factors including the magnitude of its investment in Seabrook and to the Company's inability to base its rates upon the cost of this projeet prior to its operation
'(currently assumed to be May 1,1990 for financial planning purposes). In 1987 the Company determined that, when l
( Seabrook became operational, political and competitive pressures would not permit the Company to recover the recorded cost ofits investment in accordance with traditional utility ratemaking practices. Accordingly, the Company changed its method of accounting for its investment in Seabrook to eliminate AFUDC from capitalized costs and to recognize L capitalized interest and associated income tax effects. This ' change in method of accounting effectively restated the cost j basis of Seabrook to eliminate the previously assumed effects of regulation.' The Company ceased capitalizing Seabrook costs effective December 31,1987. Accordingly, a loss of $212.0 million was recognized in 1987 associated 'with estimated remaining costs to be incurred prior to an assumed operating date of January 1,1990, in 1989 the Company revised the assumed operating date to May 1,1990 and recorded the estimated additional costs of $23 million associated with the delay. During 1989, $92.8 million was charged to the accrual; $109.5 million was charged in 1988. These charges included $36.0 million and $47.5 million of capitalized interest associated H with the Seabrook investment during 1989 and 1988, respectively.-
- The Plan is based on Reorganized PSNH distributing to creditors and equity security holders of the Company approxi.
mately $2.3 billion in value. The amount paid by Reorganized PSNH is supported by the Rate Plan which fixes'the Seabrook cost recovery at $700 million, provides for the full recovery of the net historical costs of non Seabrook assets (approximately $800 million) and, additionally, creates regulatory assets of approximately $800 million. Pursuant to the Rate Plan, Reorganized PSNH is permitted to recover the cost of these regulatory assets (with a return on the unrecovered balance) over periods of 7 to 20 years. H The Plan has been confirmed by the Bankruptcy Court. There is no assurance that the Effective Date of the Plan will occur. However, based on the Confirmation Order and the findings made by the Bankruptcy Court in conjunction therewith and progresss to date in meeting other conditions to the Effective Date, management of the Company believes that the Effective Date will occur and the Company's creditors and equity security holders will receive approximately $2.3 billion
. in value on account of their claims against and interests in the Company. Therefore, management concluded that it was appropriate to recognize an impairment loss of $260 million in the Company's financial statements at December 31,1989.
The impairment loss was calculated as the difference between the book value of the Company's Seabrook assets at December 31,1989 and the value assigned to the Seabrook assets and the regulatory assets allowed under the Rate Plan. in 1987 the Company expensed $3.6 million ofits investment in Millstone Unit 3 to resolve an issue with the NHPUC t based on prudency audits completed for the Conneeticut Department of Public Utility Control.The Company also expensed regulatory assets of $26.4 million primarily related to previously deferred rate case expenses and the cost of converting a generating facility to burn oil and coal. 42
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s s 0 j{ . j x, n 4e h- f : PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE l j NOTES TO FINANCIAL STATEMEffrS (Continued)
'i N
, %.);
1 I iF l As described in Note 2,in 1989 the Company entered into a Seabrook Comprehensive Settlement which, among other
, e things, requires the Company to assume MMWEC's share of Seabrook pre. operational expenditures and to pay certain other amounts. In March 1989, the Company expensed $50.8 million to reflect the anticipated total cost of the settlement, in 1989, the Company emered into a settlement agreement with FERC, regarding costs incurred to cancel nuclear fuel .
- purchase contracts, in 1976, the Company purchased uranium fuel for Seabrook with a price to be the greater of a negotiated : 1 m,arket price or a base price escalated according to government indices of costs, wages and prices, By 1980, the market ,]
- price for uranium had fallen below the base price as escalated accordmg to those indices. In February 198_l, the Company .
along with all the Joint Owners agreed to terminate the uranium contracts. The settlement agreement between FERC and - i
' the Company required the Company to reverse the AFUDC on the terminated contracts.
o l E A summary of losses on generating projects recorded in 1989 and 1987 is as followst ! M . .N (7housands of Dollars)
.Seabrook Plant Unit I l Estimated Future Expenditures . $ 23,010 $212,000 ,
y impairment 1 oss 260,000 - Millstone Unit 3 - 3,557 Regulatory Assets - 26,363 Seabrook Comprehensive Settlement 50,765 - Nuclear Fuel Contract Termination 2,697 - r Other . - (468) is I - Total $336.472 ' $241,452 4 Summary of Accounting Policies Regulation. During the pendency of bankruptcy proceedmgs the Company and its properties are subject to the
./ - jurisdiction of the Bankruptcy Court. Subject to the foregoing, the Company is subject, as to rates, accounting and other ;
matters, to the regulatory authority of the NHPUC, the FERC and, to a lesser extent, the public utilities commissions in .j other New England states where the Company owns property or does business. i o Cash and Temporary Investments, Forpurposes of the Statements of Cash Flows,the Company considers allhighly
, ; liquid investments purchased with a maturity of three months or less to be temporary investments.
, Investments. The Company follows the equity method of accounting for its investments in nuclear generating R companies and a wholly owned real estate subsidiary. The Company owns four to seven percent of each of four New '
England nuclear generating companies and, pursuant to purchased power contracts, is entitled to its ownership percent of
, . total plant output and is obligated to pay a similar share of operating expenses and retums on invested capital.
. Approximately 10.1%,7.7% and 6.9%, of the Company's total energy requirements were fumished by these companies in 1989,1988 and 1987, respectively. Utility Plant, Provision for depreciation of utility plant is computed on a straight line method at rates based on estimated service lives and salvage values of the several classes of property. The depreciation provisions were equivalent
- to overall effective rates of 3.55%,3.55% and 3.56% of depreciable property for 1989,1988 and 1987, respectively,
/
N ' Maintenance and repairs of property are charged to maintenance expense. Replacements and betterments are charged l to utility plant. At the time properties are retired, the cost of property retired plus costs of removal less salvage are charged to the accumulated provision for depreciation. ; s 43 4,> i t, il:
, oi . _ . . _ _ _ _ _ . - _ _ _
. n . < PUBLIC SERVICE COMPANY OF NEW H AMPSHIRE NOTES TO FINANCIAL STATEMENTS (Cont'mued)
T _ Operating Revenues. Revenues are based on billing rates, authorized by applicable regulatory commissions, which
. are applied to customers' consumption of electricity. These rates include estimates of the cost of energy incurred by the Company in the generation or purchase of electricity. To the extent that energy cost estimates differ from actual costs j
' incurred, the differences are deferred and refunded or charged to customers through periodic rate adjustments. The ;
Company records an estimate of revenue for service rendered but not billed.
' Allowance for Funds Used During Construction ("AFUDC"). AFUDC is the estimated cost, during the period l of construction, of funds invested in the construction program which is not recovered from customers through current . ;
revenues. Such allowance is not realized in cash currently but under the ratemaking process the amount of the allowance ; is expected Io be recovered in cash over the service life of the plant in the form of increased revenue collected as a result of higher plant costs. In 1987 the Company changed its method of accounting for its investment in Seabrook to eliminate AFUDC from Seabrook's capitalized costs and to recognize capitalized interest and associated income tax effects. Capitanzed interest. As described in Note 3 in 1987 the Company adjusted the cost basis of its investment in Seabrook to eliminate AFUDC and to substitute capitalized interest, which is the accounting treatment used by non-regulated enterprises. For 1989 and 1988 the portion of interest associated with the Seabrook plant was charged to the accrual for estimated future Seabrook expenditures. For 1987 total interest expense. less the estimated amount applicable to regulated operations, was allocated to Seabrook in the proportion that it represented of total costs of construction work in progress. Earnings Per Common and Common Equivalent Share. Earnings per common and common equivalent share was calculated for !?88 by adjusting eamings available for common stock for the assumed interest income that would result : from the investment of the proceeds from the assumed exercise of 18.372,999 common stock purchase warrants, at an ; exercise price of $5 per share,in excess of those proceeds used to repurchase 20% of the Company's outstanding shares j of common stock,in treasury bills. The resulting earnings available for common stock was then divided by the weighted l
~
average number of shares of common stock outstanding and common stock assumed to be outstandmg upon the exercise of warrants and assumed repurchases of common stock. For the years ended 1989 and 1987 the loss per common share was { calculated by dividing eamings available for common stock by the weighted average number of shares of common stock outstanding.
' If the Compkny had not discontinued accruing preferred dividend requirements, earnings (loss) available for common stock and eamings (loss) per common and common equivalent share would have been S(244,211,000) and $(6.09) and'
$14,298,000 and $0.35 for 1989 and 1988, respectively.
Ratio of Earnings to Fixed Charges. Eamings represent the aggregate ofincome (loss) before the cumulative effect of change in Seabrook plant accounting,less undistributed income of unconsolidated companies, plus provisions for federal and state taxes on income and fixed charges. Fixed charges represent interest, related amortization and the interest component of annual rentals.
- 5. Liabilities Subject to Settlement Upon Reorganization The Company ceased paying interest and maturities on its unsecured debt in October 1987. On January 28,1988, the !
date of the filing of the petition in bankruptcy, the Company ceased accruing interest on its unsecured debt and ceased
- paying interest and maturities, including sinking funds, on the remainder of its debt. The Bankn:rtcy Court has since granted a motion of the Company to permit, during the pendency of the bankruptcy case, payment of interest on the First Mortgage Bonds, the General and Refunding Mortgage Bonds and debt secured by any such bonds. Any reorganization plans for the Company will have to address the extent to which payment will be made on the Company's debentures, other unsecured debt, pre-petition trade payal,les and certain pre petition accrued pension costs. Additionalliabilities resulting from the rejection ofleases and executory contracts during the bankruptcy or under the Plan may be recognized. Additional claims in excess of the amounts listed below and certain additional claims arising from matters not covered by the Seabrook 44
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q 1 W .' , A . PUBLIC SERVICE COMPANY OF NEW H AMPSHIRE l k, NOTES TO FINANCIAL STATEMENTS (Conrinued) l
- yy -
i 4 4-l5 1 h , Comprehensive Settlement referred to in Note 2 have been filed. The Company intends to contest the validity of most,if ' not all, of such additional claims. ! i
. All pre-petition obligations of the Company are subject to settlement upon the adoption of a plan of reorganization.- '
' The following table lists the amounts of recorded liabilities which have been classified in noncu trent liabilities as liabilities b : subject to settlement upon reorganization. See Note ! "The Plan of Reorganization Distribution" for information about f planned payments to pre petition secured and unsecured creditors of the Company. i o
1
' 1282 128.8 j (Thousands of Dollars)
Long Term Debt ' $1,478,458 $1,503,929 Unamortized Premium and Discount - (100,694) (104,171) -l Floating Rate Notes 100,000 100,000 i ' Accrued Interest 183,737 145,696
. Accounts Payable P 19,698 19,315 l
, Accrued Pension 9,916 _ 10,481
$1,691,115 $1,675,250 l
'l Interest on unsecured debt of $138,804,000 and $130,193.000 has not been recorded in the 1989 and 1988 financial, q statements, respectively, ;
l d'
. I
' 6, IncomeTaxes "
'I-The components of income Tax Expense (Benefit) are as follows:
l-F > 1282 - 1283 1282 ? (Thousands of Dollarst 1 included in Operating Expenses l Current Federal - $ 16,139 $ 34,889 $ 25,342 State 502 + 3,052 (l;314)- 16,641 37,941- 24,028 1 Deferred Federal 7,101: ' (3,875) 10,839 Investment Tax Credit Adjustments (574) (574) 734 l
$ 23,168 $ 33,492 $ 35,601 J Included in Other Income and Deductions Current Federal $(l6,193) $ (34,726) $ (26,706)
Current State (386) (2,915) (608) i Deferred Federal (72,284) 41,754 (81,164)
$(88,863) $ 4,113 $(108,478)
Total Income Tax Expense (Benefit) . Federal $(65,811)- $ 37,468 $ (70,955) State - 116 137 (1,922)
$(65,695) $ 37,605 $ (72,877)
-l At December 31,1989 the Company had, for regular tax purposes, a net operating loss ("NOL") carryforward of approximately $725 million expiring between the years 1999 and 2004, and an Alternative Minimum Tax NOL carryforward of $640 million expiring between the years 1999 and 2004. For financial statement purposes the NOL i
- i. carryforward is approximately $65 million. Investment tax credits ("ITC") utilized are deferred and amortized to income !
b over the lives of the related properties. At December 31,1989 the Company had FTC carryforwards of $38.0 million which ; 45
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y c y l i ' . . I PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE NOTES TO FINANCIAL STATEMENTS (Continued) , I , . ., . . expire between the years 1994 and 2001. As described in Note 1, the Company has filed for protection under Chapter 1! E of the United States Bankruptcy Code, A reorganization of the Company under Chapter 11 may limit the usage of net 1 operahng loss and investment tax credit carryforwards so that some may expire unused. The reorganization may also result in a reduction in the NOL carryforward. The tax efrect of differences'between pretax income in the financial statements and income subject to tax, which are j the result of timing differences, are accounted for as prescribed by andin accordance with the ratemaking policies of the NHPUC except for the Company's investment in Seabrook, Accordingly, provisions for deferred income taxes are - recognized for all timing differences specified by the NHPUC and, as a result of the change in method of Seabrook plant ; accounting discussed in Note 3, for all timing differences associated with Seabrook. Taxes attributable to other timing . differences are flowed through to net income as adjustments to income tax expense. As of December 31,1989 the Company had not provided cumulative deferred taxes of approximately $21 million relating to various tax deductions which had been flowed through. The principal timing difference which has been flowed through is the excess of tax over book ! depreciation for assets placed in service before 1971. Provisions for deferred income taxes are summarized as follows: [
.M M M (Thousands of Dollars)
$16,143 $(84,800) '1
, Provision for Future Seabrook Expenditures $ 4.447 Capitalized Interest (530) (78) 66,709 l NormalizedTiming Differences Relating to Plant 1,383 6,472 13,310 . .!
Deferred Fuel Costs 6,661 (3,807) 2,332 l Losses on Generating Projects . . (88,%9) - -
~ Excess of Tax over Book Unused Net Operating Loss .-
Carryforward (29,791) (26,424) (51,201) : Rate Differential on Book Net Operating loss Used - - (9,131) , Seabrook Unsecured laterest 49,652 44,266 - 1 f
.Seabrook Comprehensive Settlement (8,107) - -
Other 71 1,307 (7,544)
$(65,183) $37,879 $(70,325) t
_ The principal reasons for the differences between total income tax expense and the amount calculated by applying the federal income tax rate (34% for 1989 and 1988 and 40% for 1987) to income before income tax and the cumulative effect ' .3 of change in Seabrook plant accounting are as follows:
..i M M M (Thousands of Dollars)
Income (Loss) Before Income Tax and the Cumulative Effect of Change in Seabrook Plant Accounting $(268,932) $92,878 $(159,913) Expected Tax Expense $ (91,437) $31,578 $ (63,965) Increase (Reduction)in Taxes Resulting From AFUDC Equity t154) (203) (473) Net of Tax Method of Recording AFUDC - - (443)
. Difference Between Book and Tax Depreciation-Not Normalized 2,598 2,496 2,882
~ Other Deductions and Adjustments 2,179 3,734 (1,747)
Unused Book Net Operating Loss 21,687 - - Additional Book Net Operating Loss Carryback Benefit - - (9,131) TotalIncome Tax Expense (Benefit) $ (65,695) $37,605 $ (72.877) 46 1 l l
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- 3. m M4 m m
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i H ' ' PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE I~ I NOTES 10 FINANCIAL STATEMENTS (Continued) . 7(47% ).-
; Q/[ z c O .
l> , . The Financial Accounting Standards Board has promulgated new income tax accounting rules which will require the Company Io change from the deferred method to the liability method of accounting for income taxes. The liability method accounts for deferred income taxes by applying enacted statutory rates in effect at each balance sheet date to differences - between the book basis and the tax basis of assets and liabilities. The Company currently plans to adopt,in 1992, this
?% standard on a prospective basis. Upon adoption the Company e xpects that a re gulatory asset, for the tax effects of temporary differences for which deferred taxes have not been provided because they will be recovered from customers in future years, W and a related deferred income tax liability will be established. Since the Company expects, after reorganization, to apply l SFAS No.71, to the entire company,(see Note 1 Assumptions for Pro Forma Balance Sheet) no materialimpact on the ;
- Company's Anancial position or results of operations is expected. f 7.Short Term Borrowings l v
Short term debt outstanding at December 31,1987, other than those amounts classified as current through defauk, 3 g ' f consisted of $100,000,000 principal amount of unsecured floating rate promissory notes due May 1,1988.' The Company !" reclassified these notes in 1988 as liabilities subject to settiement upon teorganization and ceased accruing interest thereon - e' effective January 28c1988. During 1989 the Company obtained a commitment for funds from a $37.5 million short term credit agreement with a major financialinstitution. There was no short term debt outstanding for the years ended December : 31,1989 ana 1988. Information regarding short term borrowings for the year ended December 31,1987 is as follows: t
! Ghousands of Dollars)
[ Q Maximum Short-Term Borrowings
~ Average Amount Outstanding .
$100,000 -
$ 61,096 - .I o Average Interest Rate (includmg Fees);
21.85 % ;
, . At Year End
,M. During the Year - 21.85 % l 4 8. Postemployment Benefits 4 s Pension Plan. The Company has a defined non-contributory pension benefit plan covering substantially'all of its ' '- employees. The benefits are based on years of service and the employce's compensation during the highest consecutive
.five years of eamings of the last ten years of employment. The Company's policy is to fund the minimum amount 3 required. Costs were $8,240,000, $7.500,000 and $6.368,000 (excludmg the cost of the early retirement program
" described below) in 1989,1988, and 1987, respectively. Contributions are intended to provide for benefits attributed to service to date and for benefits expectedto be camedin future years. The assets of the plan primarily include United
*, States Government Bonds, other bonds which are of investment grade, and stocks of publicly traded companies.
.o 7
;p Net pension cost includes the following components:
E E E n (Thousands of Dollars) l
$ 6,195 $ 5,614 $ 5,244
[p Service Cost for Benefits Eamed During the Year 9,075 8,142 Interest Cost on Projected Benefit Obligation 9,878 - (
.' . p i '
Actual Retum on Plan Assets 3,012 (9,463) (4,630)
!$ ' (10,845) 2,274 (2,388)
% Net Amortization and Deferral Net Periodic Pension Cost $ 8,240 $ 7,500 $ 6,368
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. .i W, 4 "
h w i w PUBLIC SERVICE COMPANY OF NEW H AMPSHIRE *1 H I ' NOTES 10 FINANCIAL STATEMENTS (Continued) D i / 'i l:' 1 lip : i[ l'Ihe following table sets forth the plan's funded status : At December 31, 128.2 1216' 1917. l . ("Ihousands of Dotlars)
, , , Actuarial Present Value of Benefit Obligations:
s Accumulated BeneSt Obligation, including i l h - Vested Benents of $95,826 at December 31,1989 and
$80,518 at December 31,1988 $ 96,815 $ 83,585 $ 79.817 Additional Bene 6ts Related to Future Compensation Levels 49,050 - 41,341 39,566 Projected Benefit Obligation for Service Rendered to Date 145,865 124,926- 119,383 99,244 99,8403 90,249 .1 o > Assets Available for Benents '
Projected Benefit Obligation in Excess of Plan Assets 46,621 25,086 29,134 Unrecognized Net Transition Obligation (8.010) (8,411) -_( 8,812) ;
~, ;
-Unrecognized Prior Service Cost (2,580) - -
Unrecognized Net Oain or (Loss) from Past Experience Different From that Assumed and Effects of Changes in Assumptions (19,206) 741 - (3,689) l Accrued Pension Costs I 16,825 $ 17,416 $ 16,633
, The weighted average discount rate and rate of increase in future compensation levels used in determining the actuarial present value of the projected benefit obligation was 8% and 6%, respectively, for 1989,1988 and 1987. The assumed investment rate of retum was 8.5% for 1989,1988 and 1987.
t In 1987 an early retirement incentive program was offered as part of the Company's cost cutting efforts. Employees who had attained age 55 and had completed twenty years of service by August 1,1987 were eligible to elect to retire as . ;.I
=
of September 16,1987. Employees electing to retire pursuant to the plan received an addition of five years to both age and
' length of service in determining pension benefits, and a temporary monthly supplement of $550. The cost of this program,
$5,116,000, was recognized in 1987.
Health and Life Insurance. The Company provides certain health and life insurance benefits for employees. ] Substantially all of the Company's employees may become eligible to continue those beocfits if they reach retirement age ' ( y while working for the Company. Those oenefits are provided or administered through insurance companies whose
, premiums or charges are based on tb3 bene 6ts paid during the year. The Company recognizes the cost of providing those j L
bene fits by expensing the annual ins'2rance premiums.which were approximately $ 1,793,000, $1,765,000 and $1,260,000 t for retired employees in 1989,1983 and 1987, respectively.
'I v 9. Leases L a
Rentals charged to expense in 1989,1988 and 1987 were $6,098,000, $4,826,000 and $4,814,000, respectively, j11: ' including rentals to the wholly owned real estate subsidiary of $1,211,000, $1,230,000 and $1,170,000 in 1989,1988 and 1987,respectively. At December 31,1989 estimated future minimum lease payments for non cancellable operatingleases R' -were as follows: ; 1990 $ 7,761,000 E i- 1991 6 963,000 y 1992 5,917,000 1993 4.339,000 1994 3,878,000 Thereafter 20.184,000 t 1- $49,042,000 lh 48
5\
-i jl a
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE < p - NO'IES TO FINANCIAL STATEMENTS (Continued) l 1
.k.[
10.S g - al Cash Flow , k Cash Payments for Interest and income Taxes were as follows: t Twelve Months Q Ended December 31, 1282' IEEE 1281 .i (Thousands of Dollars) s
- $154,020 ' r
$49,593 $48,148 TotalInterest 123,340 20,575 24,171 .,
Capitalized Interest Interest (Net of Amount Capitalized) $29,018 $23,977 $ 30,680 'f v
~ Income Taxes $ 368. $ ~ 107 - $- 581 1
Supplemental Summary of Noncash Financing Activities: Warrant Exercises During 1989, the Company issued 4,952,800 shares ofits Common Stock upon the exercise of warrants and the t j of the requisite principal amount ofits 17.1/2% Debentures under the terms of a settlement agreement entered into T the Company and Spear.12eds & Kellogg and Elliott Associates, LP., which provided that all holders of warrants were permitted, during the period commencing May I and ending September 15,1989, to tender subject to certain r i Debentures for the issuance of 200 ' shares of the Company's Common Stock At the end of the exercise period, the . i 1 suspension of the right to exercise the Warrants,institutedin June 1986,was reinstated. The Warrants expire by on October 15,1991. The Warrants are cancelled under the Plan.
. d The Company's Common Equity, Liabilities Subject to Settlement Upon Reorganization and Accumulated Def Taxes on income were affected by the warrant exercises as follows:
(thousands of Dollars) -{
$ 23,891 ;
Common Stock and Other Paid.in Capital
' (24,764) 17.5% Unsecured Debentures Accrued Interest (3,3%) 'j 4,620 Unamortized Discount
, 98 Unamortized Debt Expenses
$(23,442)
Accumulated Deferred Taxes on Income
$ (449)
I I 1 49 ! b ! l: 1
y s PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE .
^
NOTES '!O FINANCIAL STATEMENTS (Continued) - .
-I
> 11. Unaudited Quarterly Information f The following quarterly information is unaudited, and, in the opmion of management,is a fair summary of results of operations for such periods, Variations in Operating Revenues and Operating income between quarters teflect the seasonal -
' nature of the Company's business. l Thron Mantha Ended December 31. September 30, June 30 March Ja, M M M M M M M M (Thousseds encept Per Share amounts)
I
. Opereung Revenues $168,1h $152,900 $154,352 $148,078 $132,812 $135,185 $164,113 $167,322 Operating income 21,804 25,612 . 20,467. 20,540 17,765 21,880 28,407 36.511 '
tmees on Generating Prosects (269,697) - - - (16.010) - (50,765) - l 1 Not inemne (less) - t191,491) 13.199 8,772 10,726 (3,526) 9,749 (16,992) 21,599 l Prefernd Dividend Requirements - - - - - - - 3,084 Earnings (lone) Available for Common Stock (191,491) 13,199 8,772 10,726 (3,526) 9,749 (16.992) 18,515
- Weighted Average Common and Common
. Equivalent $hans 42,155 48,l M 47,180 48,134 38,951 48,lM 37,201 48,lM
- . Eamings (Ims) Per Share $ (4.54) $ 0.29 $ 0.20 $ 0.24 $ (0.09) $ 0.22 $ (0.46) $ . 0.40 See Note 3 for a discussion of the 1989 losses on generating projects, I
4
?
O 50
m, e' i
) $ p
( INDEPENDENT AUDITORS' REPORT
~
, We have' audited the accompanying balance sheets and statements of capitalization of Public Servici Company of New :
,+ :
Hampshire as of December 31,1989 and 1988, and the related statements of earnings, cash flows and changes in common - stock equity for each of the years in the three year period ended December 31,1989. In connection with our audits of the
-~ financial statements, we also have audited the financial statement schedules as listed in the index under item 14. Ihese l financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on -
.these financial statements and the financial statement schedules based on our audits.
- We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain teasonable assurance about whether the financial statements and financial statement . j
. schedules are free of material misstatement. An audit includes assessing the accounting principles used and signi6 cant -
- estimates made by management, as well as evaluating the overall financial statement presentation. We believe that ourl audits provide a reasonable basis for our opinion. g
.i in our opinion, the financial statements referred to above, present fairly, in all material respects,'the financial position !
~
- of Public Service Company of New Hampshire at December 31,1989 and 1988, and tne results of its operations and its j
< cash flows for each of the years in the three year period ended December 31,1989,in conformity with generally accepted j accounting principles. Also in our opinion, the related financial statement schedules, when considered in relation to the i basic financial statements taken as a whole, present fairly,in all material respects, the information set forth therein. I
. As discussed in Note 1 to the financial statements, on January 28,1988 the Company filed a voluntary petition for .j protection under Chapter 11 of the United States Bankruptcy Code. The Company is now operating its business as a !
debtor in-possession. In December 1989, the Company announced its support for a proposed plan of reorganization (the d Plan). The Plan has been voted upon by the Company's creditors and equity security holders and has been confirmed by !
- the Bankruptcy Courti Consummation of the Plan is subject to many conditions including th.: receipt of certain tax rulings, <
the allowance by the Bankruptcy Court of not more than $900 million in unsecured claims against the Company, the approval of many regulatory authorities and the issuance of approximately $2.3 billion of debt and equity securities to
- finance the Plan. Based on confirmation of the Plan, the Company's 1989 financial statements include a provision for .
impairment of its Seabrook investment as described in Note 3. The financial str.tements do not include any other adjustments relating to the recoverability and classification of liabilities that might resch from the consummation of the Plan, or that may result if an alternative plan is adopted. Our. audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. Additionally, we examined the pro forma adjustments reflecting the proposed reorganization of Public Service Company + of.New Hampshire described in Note I and the application of those adjustments to the historical amounts in the . i accompanying pro forma balance sheet of Reorganized PSNH (a new entity) as of December 31,1989; Such pro forma ; adjustments are based upon current management's assumptions described in Note li Our examination was made in ; accordance with standards established by the American Institute of Certified Public Accountants and, accordingly, ; included such procedures as we considered necessary in the circumstances. 1 i The objective of this pro forma financial information is to show what the significant effects on the historical financial information might have been had the Plan been consummated on December 31,1989. However, the pro forma balance sheet is not necessarily indicative of the financial position that would have resulted if the Plan actually been consummated earlier. i
' in our opinion, management's assumptions provide a reasonable basis for presenting the significant effects directly attributable to the Plan described in Note 1, the related pro forma adjustments give appropriate e ffect to those assumptions, and the pro forma balance sheet of Reorganized PSNH as of December 31,1989 reflects the proper application of those adjustments to the historical balance sheet of the Company as of December 31,1989.
KPMG PEAT MARWICK Boston, Massachusetts March 2,1990, except as to the pro forma balance sheet and Notes I and 3 which are as of April 20,1990. 51
., ,..,. ., i; i
, > +
- Item 9. ' CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
' AND F1NANCIAL DISCLOSURE ' '
A . Not Applicable.. .. PAk fIII q-
' Item 10.- DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.
Listed below are the names of each Director of the Registrant, the principal occupation, business experience and other ; directorships,if any, of each, the positions of each with the Registrant if other than Director, the age of each, the year in .; 1 which each became a Director and the number of shares of stock beneficially owned by each:
- i
~
shares BesenciaDy
. Owned March 1.
199a nH2HM : .) Name, age, and year Arst - Cosassee Preferred j
. elected a Director stock stock (
1,000 400 l Harvey F. Brush Senior Executive Consultant, Bechtel Group, Inc., a construction (69 years) 1989 and engineering firm, San Francisco, Ca., since January 1,1987. j Advisory Director, Bechtel Group, Inc., January 1986 to Decem- 'j ber 1986. Director, Bechtel Group,Inc., January 1985 to Decem- l ber 1985. Executive Vice President and Director, Bechtel Group, L . Inc..' 1980 to December 1984. Also a Director of Wheeling. j i' Pittsburgh Steel Corporation, Wheeling, W.Va.
'Hilary P. Cleveland . Commissioner, Intemational Joint Commission United States / 200
-(62 years) 1984 Canada, Washington,D.C.,since March 7,1990. Also Associate Professor in the Department of Social Sciences Colby Sawyer College, New London, N.H. Also a Trustee of the New Hamp.
shire Historical Society, Concord, N.H., a former Director of the ' L National Advisory Council on Continuing Education, Washing-ton, D.C., and an incorporator of the Mary Hitchcock Hospital, l l-Hanover, N.H. '[ Ocorge A. Dorr, Jr. President and a Director of Dort Fabrics, Inc., a textile retall store, 1,000 .400
- (73 years) 1954 Newport, N.H. Also a Director of Roymal Coatin gs and Chemical Company, Inc., Newport, N.H.
- John C, Duffett Chairman, President and Chief Executive Officer of the Company 1,404 200 (62 years) 1984 since February 1,1990. President and Chief Executive Officer of the Company from 1988 to 1990. Executive Vic e President and i ChiefOperatingOfficer from 1986 to 1988. Senioi Vice President from 1982 to 1986. Also Vice President and a Diactor of New Hampshire Business Development Corp., Concord, N.H., and a
. Director of Yankee Atomic Electric Company, Bolton, Mass., u K Connecticut Yankee Atomic Power Company, Hartford, Conn., .
l Maine Yankee Atomic Power Company, Augusta, Me., Vermont Yankee Nuclear Power Corporation. Rutland, Vt., and Manch. l ester Associates, Inc., Manchester, N.H., and an incorporator of L Catholic Medical Center, Manchester, N.H. (4) t O 52 l
a. U '
!; 3
. Bhares Benenelaty Owned Mereb 1,1MO
- ttM2Hb =
Name,ago, and year ftret '. Ceamos Preferred - elected a Director - 8 eck ' 8teck - r Philip S. Dunlap President. Treasurer and a Director of Ne'w Hampshire Real Estate - 418 ., (71 years) 1982 Investment Corp. (formerly N.H. Automatic Equipment Corp.), a ' l
' real estate development and management firm, Concord. N.H.i .
- i since April 1,'1988., Vice President and Treasurer of Northem- '! '
Railroad,Nashua,N.H.fromJanuary,1985,toMarch 1988. Also a Trustee of the S.H. Dunlap Realty Trust, Concord, N.H., a Di-rector of First Capital Bank, Concord, N.H., Globe Manufactur.
'E - ing Company, Pittsfield, N.H;, and Atlantic Distributors, Port-land, Me. (4) '
Fred B. Roedel President, Director and Founder of Chalet Susse Intemational, 1,000 L 1,000 (57 years) 1986' loc.. parent company of Susse Chalet Motor Lodges &. inns - j Wilton, N.H., a chain of ovemight accommodation facilities. ! Also a Director of New Hampshire Savings Bank Corp;. Concord, ! N.H., Chairman and a Director of New Hampshire Savings Bank South, Nashua N.H., and a Trustee of Daniel Webster College, j 4 Nashua, N,H; , f i Philip. B. Ryan Vice President ofThe Bigelow Company locorporated, a manage- 115 (47 years) 1983 ment consulting firm, Manchester, N.H. Also Acting Chief a Executive Officer and a Director of Health Northeast, Inc., Man- I chester, N.H., since October 1,1989. Also a Director. of j Amoskeag Bank, Manchester, N.H., Amoskeag Bankshares, i Manchester, N.H., Elkin Coffee, Bow, N H., Adage, Inc., West i Chester, Pa., and a Trustee of the Derry6 eld School, Manchester. : N.H. 1 William J. Scharffenberger Chairman of the Board and Chief Executive Officer and a Director 200 200
, (69 years) 1985 ofWheeling PittsburghSteelCorporation,amanufacturerofsteel and steel products, Wheeling, W. Va., since May 1,1989. Chair-man of the Company from September 1988 to January-1o90.
President and Chief Executive Officer and a Director of Wheel-ing Pittsburgh Steel Corporation from May 1987 to May 1989. Fixed Income Securities Department, Bear Steams & Co.,Inc., an .; investment and brokerage Grm, New York, N.Y., from October, - I 1986 to April,1987. Retired from May,1985 to October,1986. President and Chief Executive Offiar and a Director of Saxon in-dustries, Inc., a distnbutor and converter of paper and , paper related products, New York, N.Y., from May,1982 to . April,1985. Also a Director of Alco Standard Corporation, Valley i Forge, Pa., and Allegheny Intemational, Inc., Pittsburgh, Pa. j
' John T. Schiffman Partner of Smith, Batchelder & Rugg, a firm of certified public 200 = 20 -
-(49 years) 1983 accountants, Lebanon, N.H. Also a former Directorof Business &
Industry Association of New Hampshire Concord, N.H., and an incorporator of Mary Hitchcock Hospital, Hanover, N.H. William M. Scranton Management Consultant, Keene, N.H. Also President and a 1,324 110 (69 years) 1971 Director of New Hampshire Business Development Corp., Con. E- cord, N.H., and a Director of Summa Four, Inc., Manchester, N.H., and a member of the Advisory Board of Kearsarge Ven-tures, L.P., Manchester, N.H. 53 ) l 4- -i 4 . . ,, , . .
'] '
..-l l-' .
Owned Mareb 1.
... .. 1990(IW2Wh . .
Comene Preferred '.. Name, age, and yent first . elected a Director - ,
. Stock Stock .,
=
^
l Edward M. Shapiro Education Consultant since January,1987. President of New 1,991 100 (56 years) 1983 Hampshire College. Manchester, N.H., for fifteen years prior to January,1987. Trustee of the Elliot Hospital, Manchester, N.H.,7 member of the Advisory Board of Citizen's Scholarship Founda- q tion of America, Inc., Saint Peter, Minn., past President of N.H. ! College and University Council, and past Claairman of Associa-l tion of Colleges and Schools,' Washington, D.C. William C. Tallman Retired since June,1984. Chairman of the Company from 1980 to 4.593
; (69 years) 1965 : 1984. Also a Director of Amoskeag industries,Inc., Manchester, .
N.H. and Vice President. Development and a Trustee of the New Hampshire Symphony Orchestra. Inc., Manchester, N.H., and a : Trustee of the Young Men's Christian Association, Manchester, N.H. Hugh C. Tuttle Treasurer and a Director of Tuttle Market Gardens, Inc., a farm- 1,000 ~ .j (68 years) 1970 : operator, Dover, N.H. Also a Director of Great Bay Bankshares, 3 inc., Dover, N.H. J R
-s!
(1) No Director's ownership constitutes as much as 5/100ths of 1% of the outstandmg shares of either Common Stock or Preferred Stock. . 1 (2) . Includes full (but not partial) shares of Common Stock held for the account of a Director if a participant in the - i i Company's Dividend Reinvestment and Common Stock Purchase Plan. _ . I (3) All shares of Preferred Stock owned by Directors are $25 par value except those shares owned by William M. Scranton, which are $100 par value. (4)' Philip S. Dunlap, a Director of the Company, and John C. Duffett, a Chairman President and Chief Executive Officer of the Company, are brothers in-law. 1 1 1 Re ference should be made to the information furnished in " Item 4A. Executive Of ficers of the Registrant" for information =[ conceming the executive officers of the Company. : l q i I 54
. i -
Seem II. EXECUTIVE COMPENSATSON All remuneration of each of the Ave most highly compens Aed earcutive of6cers of the Company for services in all capacities to the Company and its puhaidiaries for the 6 scal yen ended December 31.1989, whose remuneration encoeded
$60,000 and of all executive ofncers of the Company as a ge up is as follows:
Cash Companantiou Table (A) (B) (C) Name er toevedual Capeems to Cash med seab equivaleet er member la youp wbleh serveel forms of remunerettee (1)(21 John C. Duffett Chairman President and Chief Executive Officer 5 238,343 Chades E. Bayless Senior Vice President and Chief Financial Of6cer(3) 168.592 D. Pierre G. Cameron, Jr. Senior Vice President and General Counsel 139,140 Jolm P. Edwards Senior Vice President . Customer Affairs 133,990 Ted C. Feigenbaum Cluef Nuclear Production Officer I16.045 (4) All Executive Officers as a Group (20 Persons) $1.977.369 (5) (1) includes amounts deferred by all caecutive officers as a group, including all officers listed in the cash compensation table, pursuant to the Deferred Income Plan. (2) Except for two officers of the Company's New Hampshire Yankee Division, who received the value of personal use of a Company vehicle, no eaccutive officer received cash or cash equivalent remuneration other than salaries and cost of certain insurance premiums undet group plans available generally to all employees. (3) Mr. Bayless has resigned his position as Senior Vice President and Chief Financial Officer of the Company effective December 1.1989, and his employment agreement, dated September 13,1989, has been 9tminated. 1 (4) Mr, Feigenbaum is an officer of the New Hampshire Yankee Division. The Company is responsi' , for 35.6% i of the amount of Mr. Feigenbaum's compensation, with the remaining 64.44 reimbursed by the other Joint Owners of Seabrook Station. (5) includes salary and severance pay, paid to an officer of the New Hampshire Yankee Division who resigned July 1.1989. j l Employment Ageoements 1 The Company has entered into separate employment agreements with Messrs. Duffett, Cameron and Edwards and with " Mr. George Branscombe, Senior Vice President Finance and Treasurer and Mr. Ralph S. Johnson, Senior Vice President, each with an initial three year term commencing September 13.1989, subject to automatic renewal terms of two years unless terminated by action of the Company's Board of Directors. For Messrs. Duffett, Cameron and Edwards, these agreements supersede carher employment agreements. Each agreement provides that each named officer shall be employed by the Company in his then current capacity and shall be entitled to receive an annual base salary of not less than
$250,016 for Mr. Duffett, $144,456 for Mr. Cameron, $140,660 for Mr. Edwards, $125,060 for Mr. Branscombe, and
$118,456($128,752 as adjusted) for Mr. Johnson, subject to certain minimum annual adjustments during each year of the initial or renewal term of the agreement. By order issued January 3,1990 the Bankruptcy Court has approved the
~ employment agreements.
Snould the Company default in any ofits obli etions f under the employment agreements, including the payment of l salary at the prescribed levels and continuation of duties currently performed, each officer shall be entitled, at his option, to receive a single sum severance payment equal to such officer's then effective annual salary multiplied by the number L of years remaining in the inhial or any renewal term of the agreement. In the event of a change in control or a negotiated termination of employment as a part of any reorganization plan of the Company, as each term is defined in the agreements, 55 1
i; 1 i each officer shall,if the Company shall thenafter default in its obligations under the agreement, he entitled to terminate , y. o his employment agreemem and theresher to noeive in a lump sum severance paymem an amount equal to (i) two times his then offective annual salary and (ii) en amount equalio his accumulated unuand vacation time and the payment of cenain medical and life immerence premiums for a two year period. Pursuant to these provisions, an aggngate of approximately
$1,$65,000 as severance payments would be payable to Mesars. Duffett, Cameron, Edwards, Brmacombe and Johnson upon termination of their employmem under the terms of their employment agreements.
Pension Plan
- The Pension Plan of Public Service Company of New Hampshire (" Pension Plan")is a trusteed, non. contributory service annuity plan which was established by the Company to provide pension benefits to its employees and is applicable to all employees, including officers, meeting a minimum period of service nquirement. Aruivities are paid frorn the trust fund under the Pension Plan and are determined under formulas applicable to all employees ngardless of position, the amounts depending on length of service and enmings prior to retirement.
Prior to the changes mandated by the 1986 Tax Reform Act, the Pension Plan provided pension benefits which were currently accrued pursuam to the following formula: 60% of the annual average January I base salary in the highest paid l five consecutive years out of the last ten years preceding retirement (such base salary in any given year being exclusive l of salary amounts elected to be de ferred in that yeat unde r the Company's former Deferred Compensation Plan fot Directors j and Officers), offect by 50% of the estimated Pnmary Social Security Benefits. prorated for those employees who have not attained age 62 and completed 30 years of service, Effective January 1,1989, pension benefits are calculated as follows: 1.35% of final average camings plus .60% of the excess of final average camings over 150% of Covered Compensation for eoch yeat of service up to 30 years. The final average camings computation is the average of the last five years of gross camings. Covered Compensation is the 35 year average of the yearly Social Security FICA Wage Bases endmg with the year of retirement. The following table illustrates the amount of annual pension benefit under the Pension Plan to an employee in specified average salary and years of nervice classifications. Such benefit amounts have been calculated as though each employee selected a atraight life annuity and retired on December 31,1989, at age 65. Averose or the Estimated Matimuss Aneuel Retiresnest Besents t Al last Five serike Years Y9erslaralas! t$ __30_ 25 _ _ 30 . ,,)Lttll i
$ 75,000 $19,647 $26,196 $32,745 $39,294 $39,294 100,000 26,% 0 35,946 44,933 53,919 53,919 125,000 34,272 45,696 57,120 68,544 68,544 150,000 41,585 55,446 69,308 83,169 83,169 l
~
200,000 56,210 74,946 93,683 98,064 98,064 250,000 (C) 56,210 74,946 93,683 98,064 98,064 300,000 (C) 56,210 74,946 93,683 98,064 98,064 i i
' ( A) Maximum Benefit currently payable pursuant to Section 415(b) of Intemal Revenue Code is $98,064.
(B) Benefit payable for 35 years of service equal to benefit for 30 years of service. (C) Maximum benefit payable is the amount of benefit for average camings of not more than $200.000 as determined pursuant to Section 401 (17) of the Intemal Revenue Code. The estimated credited years of service for the individuals named in the Cash Compensation Table (except for Mr. Bayleas who has resigned), assuming retirement as of December 31,1989, are as follows: J. C, Duffett: 35 years; and D.P.O. Cameron, Jr.: 9 years. Mr. Edwards and Mr. Feigenbaum will accrue 5 years credited service in June 1990 and January 1991, respectively. Encess Benefit Plan On January 3,1990 the Bankruptcy Court approved the Company's Excess Benefit Plan earlier adopted by the Company's Board of Directors in September 1989. The Excess Bene 6t Plan is available to all employees, including 56
1 t officers, who met the length of service and age requirements to be eligible for under the Pension Plan. The limitations on the masimum benefits payable and on the average earnings calculabons imposed by Sections 415 and 401(a)(17) of the Internal Revenue Code are not applicable under the terms of the Escess Bene 6t Plan. Supplesmestal Pension Plan The Company has a Supplemental Pension Plan ("SPP") widch w as established by the Company effective June I, 1985, to provide supplemental pension benefits to those officers and employees employed by the Company at an age when they would te unable to te employees of the Company for thirty years prior to age 62 and to qualify for the full pension tes= fits under the Pension Plan of the Company and who are designated by the Board of Directors. The SPP provides for a supplemental pension payment to te paid from the general funds of tte Company which when added to the tene nt payable from the Pension Plan of the Company and any other benefit teceived imm a qualified pension of a previous employer shall provide the eligible employee with a tenefit equal to the benent the employee would have received assuming 30 years of service with the Company had teen completed at age 62, prorated for each month retirement benefits commence pnot to age 62. Messes. Cameron and Edwards are the only officers or employees presently covered by the SPP, in Septemter 1989, the SPP was amended to expand the circumstances under widch tenefits are payable to include a change in control or negotiated termination, as those terms are de fined in the SPP, as amended, in the event of a subsequent default by the Company in performance of its obligations under related employment agreements, to permit severance payments payable under the employment agreements to be treated as ennungs for accrual calculations under the SPP, to establish certain additional retirement benefits for eligible employees under the SPP whose employment is terminated by virtue of a change in control or regotiated termination, to reinstate the earlier manner of determination of benefits, and to modify the existing manner of amendment of the SPP. By order issued January 3,1990 the Bankruptcy Court has approved the September 1989 amendment to the SPP. Special Severance Pay Plan in its order issued January 3,1990 the Bankruptey Coun approved the Company's Special Severance Pay Plan, initially adopted by the Board of Directors in Septemter 1989, and certain modifications thereto agreed upon by the Company and NU as part of the Plan. The Special Severance Pay Plan provides for the payment to certmin employees,includmg ofGoers other than Messrs. Duffett, Cameron, Edwards, Branscombe, Johnson and Peigenbaum, of certain benefits upon termination of employment following confirmation of the Plan up to a maximum of one and one half and a minimum of one times annual salary as severance pay dependmg upon the number of years of service, the extension of certain medical i and life insurance coverage for a period co incident with the geriod of extra salary, and certain early retirement twnefits ! if years of service and age requirements are met. If all employees eligible for the program were terminated the aggregate severance payments would te approximately $4.6 million. Deferred income Plan The Company has a deferred income plan pursuant to Section 401(k) of the intemal Revenue Code available to all employees of the Company a ho have teen employed at least one year. The Deferred Income Plan pennits participants to defer not in excess of I 6% of their pre tax base salary from the Company up to a maximum of $7,979 and to invest the funds in one or more different types of investment programs, the reby accumulating tax defened funds for retirement or for such other purposes as permitted under the pro risions of the Intemal Revenue Code. As of December 31,1989,1,195 employees of the Company, including all but two executive officers of the Company, were participating in the Defened income Plan. Remuneration of Directors Directors who are not employees of the Company receive an annual retainer of $7.500 (payable semi annually), as well as a fee of $450 for each Board and Committee meeting attended, except that they receive a fee of $225 for a Committee meeting attended on the same day as a Board meeting. Directors who are full time employees of the Company receive no fees for service on the Board of Directors. Committee Chairmen receive an additional annual retainer of $ 1,000, i 57 i
, t t
leen 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT , Reference should be made to the information furnished in the tabular listing of Directors of the Company under " Item
- 10. D6 rectors and Enecutive Officers of the Registrant " for information as to the shares of Common and Pnfered Stock owned by Disectors of the Company. .!
The following table acts forth information with respect to shares of Common Stock and Preferred Stock, $100 par value, and Preferred Stock, $25 par value, owned beneficially as of March 1,1990 by all persons who are known by the , Directors to own benencially more than 5% of the outstanding shares of either Common Stock, Preferred Stock, $100 par t value, or Preferred Stock, $25 par value, Peretet Title of Name and Address Amount and Notert of Clas of Ownerable - Clas _of Besencial Owner Preferred Stock, The PrudentialInsurance 90,000 Record and 14.65 % !! - $100 par value Company of America Beneficial Box 7119 Church St. Station New York,NY 10249 Preferred Stock. The Mutual Benefit Life 56,400 Record and 9.18%
$100 per value Insurance Company Beneficial 520 Broad Street p
i Newark,NJ 07101
~
Preferred Stock, Tiger L.P., Puma L.P., and $28,300 Beneficial 5.08%(1) ,
- $100 par value Julian H. Robertson, Jr. d!b/a l Tiger Management Company 7 l 101 Park Avenue New York, NY 10178 Preferred Stock, Empire of Carolina,Inc, 1,294.110 Beneficial 12.44 %(2)
$25 par value Maurice A.Halperin, Carol ;'
Minkin and Barry S. Halperin )- 441 South Federal Highway Deerfield Beach, FL 33441 Common Stock, The Manufacturers Life 3,467,025 Beneficial 7.50%(3)
$$ par value insurance Company 200 Bloor St. East s
Toronto, Ontario M4W IES Canada (1) (1) According to a Schedule 13D, dated October 5,1969, filed by Julian H. Robertson, Jr., he beneficially owns $28,300 l' shares of Preferred Stock, $25 par value, as general partner of Tiger L.P. and Puma L.P. and sole proprietor of Tiger Management Company, i (2) According to a Schedule 13D,datedOctober 12,1989, filed by the Empire of Carolina, Inc., the firm and its principles, Maurice A. Halperin, Barry S. Halperin and Carol Minkin, beneficially own 1,294,110 shares of the Preferred Stock,
$25 par value.
(3) According to a Schedule 130, dated February 6,1985, filed by The Manufacturers Life Insurance Company, it
- l. beneficially owns Warrants to purchase 3,467,025 shares of Common Stock, or 7.5% of the outstanding shares of Common Stock, assuming exercise by Manufacturers of the Warrants and that no other Warrants are exercised.
L e ! 58 i
l The following iable sets forth information an of March 1,1990, with respect to the number of shares of Common Stock and Preferred Stock owned benencially by all Directors and officers of the Company as a group: O' Class Numtwr er bres Peteemt of outstameng bres Common Stock, $5 par value 17,572 0.04 % Prefernd Stock, $100 per value 112 0.01 Preferred Stock, $25 par value 2,320 0.02 Item 13, CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS Not Applicable. PARTIV ltem 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8 K The following documents are filed as part of this report: Financial Statements (see item 8): Statements of Earnings, Years ended December 31,1989,1988 and 1987 Balance Sheets December 31,1989 and 1988 l Statements of Capitalization, December 31,1989 and 1988 Notes to Statements of Capitalization Statements of Cash Flows, Years ended December 31,1989,1988 and 1987 i Statements of Changes in Common Stock Equity, Years ended Decemler 31,1989,1988 and 1987 i Notes to Financial Statements Independent Auditors' Report Financial Statement Schedules Schedule V Utility Plant. Years ended December 31,1989,1988 and 1987 Schedule VI Accumulated Provision for Depreciation, Years ended December 31,1989,1988 and 1987 ,; Schedule Vill . Valuation and Qualifying Accounts, Years ended December 31,1989,1988 and 1987 All other schedules are omitted as the sequired information is not applicable or is included in tle financial statements or related notes. Exhibits The exhibits which are filed with this Form 10 K or which are incorporated herein by reference are set forth in the Exhibit index which appears in Part IV of this report beginning at page 65. Reports on Form 8 K A Current Report on Form 8 K, dated October 16,1989, was filed dunng the fourth quarter of 1989. In such Current Report, information was reported under item 5, Other Materially important Events. 59 i
,I h
SCHEU'ULE Y h PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE UTILITY PLANT i Years Ended December 31.1989,1988 and 1987 ' I (Thousands of Douaral f Other Balance at Changes Balance at Beginning Retire. Add End of Period Addiliaal masts (DadE11 a[2aded YEAR ENDED DECEMBER 31.1989 Intangibles $ 45 $ - $ - $ . $ 45 Generating Plant Steam 285,161 !$,267 2,848 (19) 297,561 Generating Plant . Nuclear 117,024 414 70 . 117.368 Generating Plant - Hydro 36,245 277 28 (3) 36,491 Generating Plant Other 8,557 208 3 - 8,762 164,130 8,195 179 (7) 172,139 Transmission 314.036 22.053 3,600 7 332,496 Distribution General 45,150 4,702 1,301 21 48,572 Nuclear Fuel 5,286 1,868 . - 7.154 1,539 2.777 - - 4,316 Plant Held for Future Use , Unfinished Construction 1,687,205 114,100 (271,240) 1,530,065 Unfinished Construction-Nuclear Fuel i19,489 (1,127) - (117,927) 435 TOTAL $2.783,867 $i68,734 $ 8,029 $UlI9,168) $2,555,404 YEAR ENDED DECEMBER 31.1988 intangibles $ 45 $. . $ - $ - $ 45 Generating Plant - Steam 282),55 4,116 1,810 - 285,161 Generating Plant Nuclear 116,750 315 41 . I17,024 31,796 4,453 4 - 36,245 Generating Plant Hydro 8,436 121 - -- 8.557 Gerwrating Plant . Other 160,674 3,553 112 15 164,130 Transmission 291,073 26,543 3,553 ' (27) 314,036 Distribution 43,939 1,498 287 - 45,150 General 3,985 1,402 - (101) 5,286 Nuclear Fuel 1,539 - - - 1,539 Plant Held for Future Use Unfinished Construction 1,693,182 96,140 - (102,i17) 1,687,205 120.187 6,566 . (7.264) I19,489 Unfinished Construction Nuclear Fuel TOTAL $2,754,461 $144,707 $ 5,807 $<109,494) $2.783,867 YEAR ENDED DECEMBER 31.1987 intangibles $ 45 $ - $ - $ . $ 45 264,729 19,678 2,058 506 282,855-
' Generating Plant . Steam
!!9,588 721 26 (3,533) 116,750 Generating Plant Nuclear Generating Plant . Hydro 31,199 600 3 -
31.7 % 8,413 38 15 - 8,436 Oenerating Plant Other 155,012 6,205 536 (7) 160,674 Transmission 270,098 24,675 3,687 (13) 291,073 Distribution 40,136 4,290 443 (44) 43,939 General 3,985 - - - 3,985 Nuclear Fuel 1,539 - - - 1,539 Plant Held for Future Use 1,766,818 226,951 - (300,587) 1,693,182 Unfinished Construction 107,471 12,716 - - 120.187 Unfinished Construction Nuclear Fuel TOTAL $2,769,033 $295,874 5 6,768 $(303,678) $2,754,461 0
.0
i f* f SCHEDULE VI
*. y
, PUBLIC SERVICE COMPANY OF NEW H AMPSHIRE
- (~N ' ACCUMULATED PROYtSION FOR DEPRECIATSON ,
( I Years Ended December 31,1989,1988 and 1987 1' (Thousands of Debars) Other ! L Balance at Changes Balance at i Beginning Retire. -Add End 7 Description of Period Additions , monts (Deduct) of Period Accumulated Provision for Depreciation of Electric Plant: I989...................................... $318.345 $34,045 $8,012 $(568)(A) $343.810 , 1988....................................... 291.201 32.690 5.772 226(A) 318.345- : p i987.................................. 266,490 31.396 6.766 81(A) 291,20I [, I-i t 1 m (A) Represents: 12.82 M 1931 Depreciation charged to automotive clearing.... . . $ 499 $ 449 $ 448 Depreciation on plant units acquired..... ... . ... ....... 6 . 4 Depieciation charged to construction... ... . ... . . . . 13 13 (1l) Ne t s al v a ge . ... ... . . . ...... .. . . . . . . . . . .. ..... . ... . . . (2.074) (1.223) (1,723) Nuclear fuel Millstone ... . .. ....... .. . . ...... . .. 1,131 1,122 1,462 , Depreciation not charged to the reserve... . . . . . . (143) (135) (99)
~
$ (568) $ 226 $ 8i t
I
+
61
kn k - SCHEDULEVH1 PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE l YALUATION ANDQUAL8FY8NG ACCOUNTS Years Ended Deceanber 31,1989,1988 and 1987 (Thousands of Debars) Charged Balance at to or Balance at Beginning From Deduct. End l of Period Additions 9ther Acet. ions of Period DsKdadas , Valuation Accounts Deducted From Related Assets: Provision for Uncollectible Accounts 1989.............................. $ 1,536 $ 2.450 $ - $ 2.405(A) $ l.581
-935 2,229 . 1.628( A) 1,536 1988...................................... '
925 1,302 . 1,292( A) 935 l- 1987.... . ........ . . . . . . . . L Accumulated Provision for Depreciation of Non Operating Property
$ 505 5 19 $ - $ . $ 5 24 19 8 9.. . . .. . . .. .. .. ........ . . . .
486 19 - - . 505 1 9 8 8 . . . . . . . . . . . . . . . .. . . . . . . . . . . 473 8(B) 486 1987............................. 21 - Reserve included Under " Deferred Credits . Other" Reserve for injuries and Damages
$ 1,285 $ 1.440 $ - $ 865(C) $ 1,860 1989.....................................
253 1,377 - 345(C) 1.285 1988....................................... 60 750 - 557(C) 253 1987................................ Deferred Seabrook Comprehensive Settlement Reserve:
$16.000 $ . $ - $ 16.000 1989.............................. $ .
Reserves included Under " Current Liabilities": Reserve for Estimated Cancellation Costs for : Seabrook Unit 2.
$ 12.795 $ $ - $ 450(D) $ 12,345 I989................................. -
12,795 1988.................................. 13.329 - - 534(D) 13,960 - 63 f(D) 13,329 1987................................ - Reserve for Estimated Future Seabrook . Expenditures:
$102,519 $23,000 $ - $92.850(E) $ 32,669 1989..... .. .. .. .. .. . . . . . . . . .
212,000 - - 109.481(E) 102.5I9 1988.................................... 212,000 212,000 - - I987.................................... - Seabrook Comprehensive Settlement Reserve:
$33.988 $ . $26,!44(F) $ 7,844 1989.................................... $ -
(A) Accounts written off, net of recoveries. (B) Retirement of fully depreciated asset. (C) Non-operating reserve transferred to operating. (D) Cancellation costs charged to the reserve. (E) Cash and interest charged to the reserve. (F) Cash payments charged to the reserve. 62 4 3
A l l
! SIGNATURES Pursuant to the requirements of Section 13 or Idd) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the un&rsigned, thereunto duly authorized.
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE By J.C. DUFFETT J.C. Duffett, Chairenan. President Date: April 27,1990 and Chief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. SiEBallAIX 1 1111 'llait J. C. DUFFETT Chairman. President and April 27.1990 J.C. Duffett _ Chief Executive Officer (Pnacipal Executive Officer) G. BRANSCOMBE Senior Vice President . April 27,1990 G. Branscombe : Finance and Treasurer (Principal Financial Officer) B. W. WIGGElT Comptroller Aptil 27.1990 B. W. WigFett 1 (Principal Accounting Officer) i HARVEY F. BRUSH ' Director April 27,1990 I Harvey F. Brush HILAT.Y P. CLEVELAND Director April 27,1990 Hilary P. Cleveland GEORGE A. DORR, JR. Director April 27,1990 George A. Dorr,Jr.
.FREDB.ROEDEL Director April 27,1990.
Fred B. Roedel
, PHILIP B. RYAN Director April 27,1990 Philip B. Ryan I
i 63 4 a-
4 Espanhare lillt Datt WILLIAM M.SCRANTON Director April 27,1990 ; William M. Scranton i EDWARD M. SHAPIRO Director April 27.1990 Edward M. Shapiro ; i PHILIP S. DUNLAP Director April 27,1990 Philip S. Dunlap JOHN T. SCHIFFMAN Director April 27.1990 John T. Schiffman WILLIAM C.TALLMAN Director April 27.1990 William C. Tallman r b t 5 O
m , t
; , i r
l' EXHIBITINDEX fm 'Ihe following designated eahibits are, as indicated below. either filed herewith or have heretofore been filed with the Securities and Exchange Commission under the Securities Act of 1933, the Securities Exchange Act of 1934 or the Public ) Utility Holdmg Company Act of 1935 and are referred to and incorporated herein by reference to such filings. SEC Exlubit Docket , Eahibit 3. Articles of Incorporation and By laws incorporated herein by reference: 3.1. Articles of Agreement, as amended. 4.1 2 86798
+
3.2. By laws, as amended. 3.2 Annual Report ;
?
l 6392 for 1984 Eahibit 4. Instruments defining the rights of security holders, including indentures Incorporated herein by referencet 4.1. General and Refunding Mortgage indenture dated as of August 15,1978 between the Company and 2.32 2-62856 New England Merchants National Bank. Trustee. 4.1.1. First Supplemental Indenture to the General and ' Refunding Mortgage Indenture dated as of Sep- 2.32 2-65427' tember 15,1979. A O 4.1.2. Second Supplemental Indenture to the General . I and Refundmg Mortgage Indenture dated as of 2.5 2 66334 January 15,1980. 4.1.3. Third Supplemental Indenture to the General and Refunding Mortgage Indenture dated as of Decem. 2.3.3 2 69947 : ber 1,1980. ; 4.1.4 Fourth Supplemental Indenture to the General and ' Refunding Mortgage Indenture dated as of June 1, 4.1.4 2 77577 1982. 4.1.5. Fifth Supplemental Indenture to the General and j Refunding Mortgage Indenture dated as of June 19, 4.1.5 2 92102 1984. 4.1.6. Sixth Supplemental Indenture to the General and , Refunding Mortgage Indenture dated as of August 4.1.6 2-92102 15,1984 4.1.7. Seventh Supplemental indenture to the General and Refundmg Mortgage Indenture dated as of 4.1.7 33 1442 August 28,1985. O 65
ra SEC Enhdal Docket
- Filed Herewith:
4.1.8. Eighth Supplemental Indenture to General and Refunding Mortgage Indenture, dated as of November 15,1989. 4.1.9. Ninth Supplemental Indenture to General and Refunding Mortgage dated as of December,1989, incorporated herein by reference: 4.2 First Mortgage dated as of January 1,1943 between the Company and Old Colony Trust Company, Trustee. 4.4 2 81165 4.2.1. First Supplementallndenture to the Company's First Mongage dated as of December 1,1943. A la 70-684 4.2.2. Second Supplemental Indenture to the Company's First Mongage dated as of June 1,1947. 7.3 2 7066 4.2.3. Third Supplemental Indenture dated as of January 1,1948. 7.4 '2 7324 4.2.4. Founh Supplemental Indenture dated as of Octo-ber 1,1948. 7.5 2 7658 4.2.5. Fifth Supplemental Indenture dated as of June 1, 1949. 7.6 2 7985 4.2.6. Sixth Supplemental Indenture dated as of June 1, 7.7 2 8969 1951. 4.2.7. Seventh Supplemental Indenture dated as of Sep-tember 1,1953. 4.9 2 10426 4.2.8. Eighth Supplemental Indenture dated as of Nov-ember .1,1954. 4.4.8. 2-81165 - 4.2.9, Ninth Supplemental Indenture dated as of June 1, 4.4.9 2-81165 1956. 4 4.2.10. Tenth Supplemental Indenture dated as of October 1,1957, 2.12 2 15260 4.2.11. Eleventh Supplemental Indenture dated as of July ] 1,1959, 2.13 2 17162 1 l 4.2.12. Twelfth Supplemental Indenture dated as of Nov-ember 1,1%0. 2.14 2 20451 l l 4.2.13. Thineenth Supplemental Indenture dated as of l 4.4.13 2 81165 July 1,1%2. 4.2.14. Founeenth Supplemental Indenture dated as of 4.4.14 2 81165
. January 1,1966.
66 l
E i-SEC Exhibit Docket fM.i 4
?
U 4.2.15 Fifteenth Supplemental Irdenture dated as of October 1,1966. 4.4.15 2 81165 4.2.16. Sixteenth Supplemental Indenture dated as of June 1,1967. 4.4.16 2 81165 4.2.17. Seventeenth Supplemental Irdenture dated as of November 1,1968. ' 2.19 2 30554 4.2.18. Eighteenth Supplemental Indenture dated as of November I,1970. 4.20 2 38646 4.2.19. Nineteenth Supplemental Indenture dated as of June !$ 1972. 2.22 2 50198 4.2.20. Twentieth Supplemental Indenture dated as of - March 1,1974 2.23 2 50198 L 4.2.21. Twenty First Supplemental Indenture dated as of , October 15,1974, 2.24 2 51999 i 4.2.22. Twenty Second Supplemental Indenture dated as of December 1,1974 2.25 2 54646 i 4.2.23. Twenty-Third St;pplemental Indenture dated as of I (^N March 1,1975, 2.26 2 54646 .
'd . 4.2.24. Twenty Fourth Supplemental Indenture dated as of October 15,1975. 2.27 2 57289 4.2.25. Twenty Fifth Supplemental Indenture dated as of October 15,1976. 2.28 2 59516 l
4.2.26. Twenty Sixth Supplemental Indenture dated as of , l November 1,1976. 2.29 2 59516 i !! 4.2.27. Twenty-Seventh Supplemental Indenture dated as l of May 1,1978. 2.30 2 61924 l 4.2.28. Twenty Eighth Supplemental Indenture dated as of August 15,1978. 2.31 2-62856 4.2.29. Twenty Ninth Supplemental Indenture dated as of j September 15,1979. 2.33. 2-65427 4.2.30. Thirtieth Supplemental Indenture dated as of Jan, uary 15,1980. 2.4.30 2 66492 4.2.31, Thirty First Supplemental Indenture dated as of December 1,1980. 2.4.31 2 69947 4.2.32. Thirty Second Supplemental Indenture dated as of Q('N June 1,1982. 4.2.32 2 77577 67 ,
,t 3 i SEC ,i Edgh11 Docket 4.3. Indenture dated as of October 1,1982 between the .
Company and Manufacturers Hanover Trust Com-pany, Trustee, relating to the 15 3/4% Debentures 4.3 2 79411 , t due 1988. 4.4. Indenture dated as of February 1,1983 between the Company and Manufacturers Hanover Trust Company. Trustee, relating to the 14 3/8% Deben- 4.6 2 81367 tures due 1991. Registration Statement on 4.5. Indenture dated as of November I,1983 be: ween Form 8 A the Company and Manufacturers Hanover Trust relating to Company, Trustee, relating to the 15% Debentures 15% Debentures due 2003. due2003 (File No.16392) .. t 4.6. Trust Indenture dated as of December 1,1983 between the New Hampshire Industrial Develop-ment Authority and State Street Bank andTrust 4.9 Annual Report Company. Trustee, relating to the Pollution Con- 16392 for 1983 trol Revenue Bonds,1983 Series A (Public Service Company of New Hampshire Project). l 4.6.1, Loan Agreement dated as of December 1,1983 > between the Company and the New Hampshire Annual Report Industrial Development Authonty relatmg to loans 4.9.1 16392 for 1983 to the Company of the proceeds of the bonds issued under Exhibit 4.9. 4.7. Trust indenture dated as of October 15,1984 . between the Company and Midlantic National 4.10 2 92102 Bank Trustee, relating to the 171/2% Debentures due 2004 4.8. Warrant Agreement dated as of October 15,1984 between the Company and The First National , Bank of Boston, relating to Warrants to purchase 4.12 2 92102 l 18,375,000 shares of Common Stock. l 4.9. Third Mortgage Indenture dated as of February 15. 1986 between the Company and First Fidelity 4.13 33 1442 q Bank, National Association, New Jersey. 4.13.1 Annual Report 4.9.l. First Supplemental Indenture dated as of February 15,1986 relating to Third Mortgage Bonds Pollu- I 6392 for 1985 j r tion Control Series B. Second Supplemental Indenture dated AuFust 19,1986 4.9.2 Annual Report 4.9.2 to Third Mongage Indenture. 16392 for 1986 9 1 68
l l l
' -SEC l E&tubit Docket j
")
(m. 4.10 Indenture of Trust and Agreement dated as of February 1,1986 among the Company,*Ihe indus-4.15 Annual Report j 16392 for 1985 ! trial Development Authority of the State of New ; Hampshire and Amoskeag National Bank arx! Trust Co., as Trustee. j i Filed Herewith: 4.11 Trust Indenture between the Industrial Development l Authority of the Sate of New Hampshire and Shawmut Bank, N.A., as Trustee, dated as of December 1,1989, + relating to the Adjustable Rate Solid Waste Disposal . and Pollution Control Revenue Bonds,1989 Series (Public Service Company of New Hampshire Project). ; 4.12 Loan agreement, dated as of December I,1989, . between the Industrial Development Authority of the Sate of New Hampshire and Public Service Company of New Hampshire, relating to the Adjustable Rate Solid Waste Disposal and Pollution Control Revenue Bonds, 1989 Series (Public Service Company of New Hampshire 'j Project). Exhibit 10. Material Contracts incorporated herein by reference: 10.I, Form of New England Power Pool AFreement 10.1 Annual Report i dated as of September 1,1971 as amerxled to 10392 for 1988 November 1,1986. 10.1.1. Agreement amending New England Power Pool 10.1.1 Annual Report Agreement dated as of April 30,1987, 16392 for 1988 10.1.2. Agreement amending New England Power Pool 10.1.2 Annual Report Agreement dated as of March 1,1987, 16392 for 1988 10.2. Agreement dated October 13,1972 for Joint Own-ership, Constructior, and Operation of Pilgrim Unit 5.3(d) ' 2 45990 No. 2 among Boston Edison Company and other , utilities including the Company. 10.3. Agreement dated as of May 1,1973 for Joint Own- _ ership, Cor.struction and Operation of New Hamp- l shire Nuclear Units among the Company and other 13-57 2 48966 utilities. 10.3.l. Amendments to Exhibit 10.3 dated May 24,1974, June 21,1974 and September 25,1974. 5.15 2 51999 10.3.2. Amendments to Exhibit 10.3 dated October 25.
~ /d . 1974 and January 31,1975. 5.23 2 54646 69
~ -- - - _ .
I' a 1 ( SEC ; E&habil DislLtl 10.3.3. Sixth Amendment to Exhibit 10.3 as of April 18, 5.4.3 2-64294 : 1979. 10.3.4. Seventh Amendment to Exhibit 10.3 dated as of April 18,1979. 5.4.4 2 64294 ) 10.3.5. Eighth Amendment to Exhibit 10.3 dated as of April 25,1979. 5.4.5 2-64815 J 10.3.6. Nmth Amendment to Exhibit 10.3 dated as of June 8,1979. 5.4.6 2 64815 Tenth Amendment to Exhibit 10.3 dated as of 10.3.7. October 10,1979. 5.4.7 2 66334 i 10.3.8. Eleventh Amendment to Exhibit 10.3 dated as of ! December 15,1979. 5.4.8 2 66492 10.3.9. Twelfth Amendment to Exhibit 10.3 dated as of June 16,1980. 5.4.9 2 68168 10.3.10. Thirteenth Amendment to Exhibit 10.3 dated as of December 31,1980. 10.6.10 2 70579 , Fourteenth Amendment to Exhibit 10.3 dated as of 10.5.11 Annual Report 10.3.11. June 1,1982. 16392 for 1982 .j 10.3.12. Fifteenth Amendment to Exhibit 10.3 dated as of April 27,1984 10.5.12 2 92102 10.3.13. Sixteenth Amendment to Exhibit 10.3 dated as of ' June 23,1984 10.5.13 2 92102 Seventeenth Amendment to Exhibit 10.3 datrd as 10.5.14 Annual Report 10.3.14. of Ma,ch 8,1985. 16392 for 1985 i Eighteenth Amendment to Exhibit 10.3 dated as 10.5.15 Annual Report 10.3.15. of March 14,1985, 16392 for 1986 10.5.16 Annual Report 10.3.16. Nineteenth Amendment to Exhibit 10.3 dated as of May 1,1986. 16392 for 1986-10.5.17 Annual Report 10.3.17. Twentieth Amendment to Exhibit 10.3 dated as of September 19,1986, 16392 for 1986 Twenty first Amendment to Exhibit 10.3 dated 10.3.18 Annual Report 10.3.18 as of November 12,1987. 16392 for 1988 Twenty second Amendment to Exhibit 10.3 dated 10.3.19 Annual Report 10.3.19 as of January 13,1989. 16392 for 1989 incorporated herein by reference: Agreement for Seabrook Project Disbursing Agent 10.5.14 2 92102 10.4. 70
y
&'a :
4s, i i .. SEC ! L , Ealnbit Doghal i
\
r8 . . . 10.4.l. First Amendment to Exhibit 10.4 dated as of March 10.6.1 AnnulRepon
- J"") _
, 8,1985. 16392 for 1985 i 10.4.2. Second Amendment to Exhibit 10.4 dated as of May 10.6.2 Annual Report 20,1985. 16392 for 1985 i i
10.4.3. Third Amendment to Exhibit 10.4 dated as of June 10.6.3 Annual Report 18.1985. 16392 for 1985 . p 10.4.4. Founh Amendment to Exhibit 10.4 dated as of 10.6.4 Annual Report 1 January 2,1986. 16392 for 1986 - 10.4.5. Fifth Amendment to Edibit 10.4 dated as of 10.4.5 Annual Report i Novemter 12,1987 l 6392 for 1988 ] 1 10.5. Transmission Support Agreement dated as of May I 1,1973 among the Company and other utilities 13.58 2 48966 j with respect to New Hampshire nuclear units.
]
10.6. Sharing Agreement .1979 Connecticut Nuclear Unit dated Septemter 1,1973 to which the Com- 6.43 2 50142 pany is a pany. j l 10.6.1, Amendment to Exhibit 10.6 dated August I,1974 5.45 2 52392 j 10.b.2. Amendment to Exhibit 10.6 dated December 15,
'- 1975. 7.47 2 60806
{ 10.7 A Freement executed on January 23,1973 for the
. design and furnishing of the nuclear steam supply ,
, systems for the Company's Seabrook plant C Annual Report t tetween the Company and Westinghouse Electric l 6392 for 1972 .
Corporation. 10.8. Agreement dated Novemter I,1974 for Joint Own-ership, Construction and Operation of William F. , Wyman Urut No. 4 among Central Maine Power 5.16 2 52900 Company and other utilities includmg the Com-pany.
' 10,8.1.' Amendment to Exhibit 10.8 dated Jcne 30,1975. 5.48 2 55458 10.8.2. . Amendment to Exhibit 10.8 dated as of August 16, 1976. 5.19 2 58251 10.8.3. Amendments to Exhibit 10.8 dated as of Decemter 31,1978. 5.10.3 2-64294 l
10.9. Transmission Support Agreement dated November 1,1974 among Central Maine Power Company and 13.57 2 54449 t e other utilities including the Company, 71 s t e v , -m-,.-.-- s -.. - y
SEC
- L- EahBal DQGkt!
10.10. Transmission Suppnn Agreement dated August 9. . 1974 between the Connecticut Light and Power Company and other utilities includmg the Com. 5.24 2 54646 - pany. t 10.11. Pension Plan of Public Service Company of New Annual Report . Hampshire, amended effective as of January 1. 10.14 16392 for 1981 l 1981. First Amendment to Exhibit 10.11. 10.12.1 2 92102 ' 10.I1.1.- Amendments to Exhibit 10.11 dated as of 10.11.2 Annual Report 10.11.2
- 16392 for 1988 AuFust 1.1987.
Amendments to Exhibit 10.11 made as of 10.11.3 Annual Report 10.11.3 January 19,1989. 16392 for 1988 Filed herewith: 10.11,4 Amendments to Pension Plan of Public Service Company of New Hampshire made as of March 15, 1990. Incorporated herein by reference: Employee Stock Ownership Plan and Trust. 10.19 2 70579 ; 10.12. Agreement dated as of July 23,1985, between the 10.18 2 92102 , L 10.13. Company and United Engineers & Constructors,Inc. 10.14 Memorandum of Understanding, dated November 7, 1988 between Company and Massachusetts Municipal 10.17 Annual Report . 1
%lesale Electric Company. 16392 for 1989 Settlement Agteement dated as of January 13,1989 10.18 Annual Report 10.15 between the Company and certain other utilities. 16392 for 1989 ;
Supplement to Settlement Agreement, dated as of 10.18.1 Annual Report 10.15.1 i February 7.1989, between the Company and Central 16392 for 1989 Maine Tower Company. Exhibit 11. Statement re Computation of Per Share Earnings Filed herewith: s 11.1. Calculation of Eamings Per Common and Common Equivalent Share. . Exhibit 12. Statement re Computation or Ratios Filed herewkh: 12.1. Calculation of Ratios of Eamings to Fixed Charges. , 72 )
.g .i ,'c Eshibit 11.1 :
e : y k}y ! PUBLIC SERYlCE COMPANY OF NEW HAMPSHIRE CALCULATION OF EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE j t t For the Year Ended Dacanhar 31. 1282 1988 1981 (Thousands except Per Share Amounts) l Reconcillation of earnings available for common L to amount used in calculation: l- Earnings (Loss) Available for Common Stock $(203.237) $52,189 $($26,667) i (. Add: Interest on investment of treasury bills, net of f tax effect on application of assumed
- proceeds from the exercise of warrants in excess of 20% limitation - 2,701 -
1 , . Adjusted Eamings (Loss) Available for Common Stock $(203.237) $54,800 $(526,667) lz Reconciliation of wel hted F average number of shares - outstandmg to amount used in calculation:
's Weighted average number of shares outstanding 40,089 37,201 ~37,194' Add:
Shares issuable from the assumed exercise , of warrants in excess of 20% 10,933 i limitation (a) - . Adjusted weighted average number of shares 40,089 48,134 37,194 Eamir:gs (Loss) Per Common and Common Equivalent Share $ (5.07) $ 1.14 $ - (14.16) ll r
-(a) 18,372,999 shares from the assumed exercise of warrants less 20% limitation of assumed repurchases (7,440,225).
e C( 73 L
L c: Eshibil 12.1 4 y i
?
O! PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE f CALCULATION OF RATIOS OF EARNINGS TO FEXED CHARGES l Year Ended Decamaher 3L M M M M M 1 (Thousands of Dollars Except Ratios) i- , income (Loss) Before Cumulative Effect of .
.. : Change in Seabrook Plant Accounting $(203.237) $ $5,273 $ (87,036) $(198,365) $154,742 Add (Deduct):
; Provision for Taxes Based on income (65,695) 37,605 (72,877) (30,212) (18,947)
(36)- 588 739 59,270 50,746 a Taxes Applicable to AFUDC Fixed Charges 95,182 105.350 226.847 212,054 182,102 (173,786) 198,816 67,673 42,747 368,643 (Add) Deduct:. Undistributed Earnings of Affiliated ' Companies 520 281 (451) (6%) (858)- Earnings Available for Fixed Charges $(174,306) $198,535 $ 68,124 $ 43,443 $369,501 Fixed Charges - Interest on Long Term Debt m $ 92,769 $100,525 $210,409 $ 206,400 $171,989
$5B 3,341 14,950 4,091 8,699 Other interest 1,855 1,484 1,488 1,563 1,414 *
- Interest Component of Rental Charges Total Fixed Charges $ 95.182 $105,350 $226,847 $ 212,054 $182,102 -
(1,83)* 1.88 .30 .20 2,03 Ratios (1) . As of January 28,1988, the bankruptcy filing date, the Company ceased accruing interest on its unsecured debt. As a result interest on long term debt was approximately $ 139 million and $ 130 million low er than it otherwise would have been for 1989 and 1988, respectively, Had the Company not discontinued accruing interest on its unsecured debt the ratio of earnings to fixed charges would have been (0.74) and 1,40 for 1989 and 1988, respectively, > (2)' Earnings to cover fixed charges are deficient by $ 269,488,000, Losses on generating projects, which are the cause of the Company's earnings de6ciencies, are not expected after reorganization. l l O' 74
-- n ,a . ~ + - --- ,,m, ,o- - - - , . r e.-
{: O I' REVISED 4/18/90 I I
,y: ' Mis almas inW be u.ed av 4KA to we.w your *Inanesal situation Your ponse te . ass d d (? 3 e 907 et ses ; and is siot coansiennal I USDA=REA SURROWER CE54 GNAT 6AN form Appmee. l N.H. Merrimack obt3,,No. 06 T2 0016 r, ma Osa0ae i G- '
FINANCIAL AND' STATISTICAL REPORT SORRQWER nab.c AND AooRe&& New Hampshire Electric Cooperative, Inc. RFD #4, Box 2100 l I Plymouth, NH 03264-9420 INSTRUCTIONS -Su6mst an esteenal and tour opees to AAA. Aoung en veAR ENDiNO RcAW5t oN4.Y
,; .mauna no n e son.r. s nzA roat.2. December 31. 1989 i CERTIFICATION l lGe hereby certify that the entries in this report are in accordarece with the accounts and other records of the systeri l and repect the status of the system to the 6est of our knowledy and belief.
ALL INSURANCE REQUIRED BY PART 1788 OF 7 CFR CHAPTER XVil. REA, WAS IN FORCE DURING THE REPORTING PERIOD ANO RENEWALS HAVE BEEN OSTAINED FOM ALL POLICIES.
#v g,pe.d. fypM'pd April 19, 1990 )
s;GN ATv Reg : ---- ._ __ -- AccovNT ANT oArt lI#,, L5/[69-y m April 19, 1990 l g 56GNAyRE QF MANAGER QATE
/ PART A. STATEMENT OF OPERATIONS VtAR To.oATE ITEM THIS MONTH t.AST YEAR l THIS YEAR SUDGET o.; I tbl rep rdo
- t. oo.ratin, Rev nu. ano patron. capetai . .
$ 50.069,190 $53,277,159 $54,824.570 $5,503,398
- 2. oo , proouction eso nu . . . . . .
- s. cost of a ureneua eower . . . . . . 31.887,871 32,969,946 34,406,460 3,804,641
- s. Tranimen.on tuo.n . . . . . . . 7,162 18,844 35,200 --
- s. oistriouuan cao.nu . oo.ranon. . . . 1,245,970 1,884.958 1.525.805- 150,285
- s. ointiovuon tno ni . uaintenance . . . . 1.592.352 2.618,263 2,190,062 412.443 *
- 7. consumer Account $ tmo.nu . . . . .
1,335.360 1,433,041 1,569.152 117.836 l g custom.r servic. ano informanonat tmo.nu . . 106.041 245,332 223,200 30,639
.,. svei exo.ni. -- -- -- --
to. Aammistrativ. ana G.n.ral cap.ns. . . . 3.053.898 3,882,523 :t,666,560 516.412
- 11. Toic operauen a uamienanc. capense (2 tnru to! . $ 39.228.654 43,052,907 $43,616,439 5.032.256
- 12. o.ornianon ana Amortinuon eso.ne. . . . 3.187.728 3.553.755 3.609,609 326.088 i
ts. Tan tmo.nu proo.rty . . , . . . 1.147.575 1.282,191 1,265.760 131.988
- 14. Ta= Emo.as . etner . . . . . . 708.911 836,862 861,636 66.981 t s, anterne on t.one.v.rm o.oi. . . . . 15.745.969 3.595.559 17.106.605 304.883
- 16. Inter.st Cnarg a to Constructice) .Crealt . . . ( -- 1 I -- I { lI.994.000 l ( --
t r. inter.st emoenu . oiner . . . . . . 176.039 31.146 25,000 7.788 1s. otn.c o. auctions . . . . . . . 7R onn.o'51 1.300.925 74.280 141.826 to. Tots cost of ti.ctnc servic. It t inru tai . . , 9110.1R;.700 53.662.345 $54.565.329 6.011.810
- 20. Patrons,. capitai a operaun, war,ini (1 minus toi . t(Ro.116.609) (385.186) $ 259,241 (508.4123
- 22. Non coereung ueroms . tneorest . . . . . 71n nao 521.973 507.380 43,905
- 22. Ano.anc. for Panas Us.e ourtn, construcuen . .
- 23. Non operaun, Marsms . otner . . . . . 17_941 (24.307) 20.144 1,460
- 24. O.nsration ano Transmise4en Caettet Cr.alts . .
2s, otner Capital Crealts ano Petrones. 04vto.nas . . 26 catracrainary items . . . . . . . 27 e s t oaa eaouai s, va. ..i f te tacu rei $(88.369.2673 112.480 $ 876,765 $ 463.045 PART B. DATA ON TRANSMISSION AND DISTRIBUTION PLANT YEAR.TO oATE YEAR.TO oATE ITEM t.AST Y EAR THIS YEAR ITEM t.AST Y E AR THIS YEAR I.) (b6 f.) 168
- 1. N.* servien conn.ct.a **""""'"'"""'"
2,917 1,740 38.43 53.83 s.<vien R.u .a 230 157 U.*r'a$'a'" "" ' 4,126.46 4.191.77 l2.Totus.,..cnmoiac. 63,020 64.606 Ua*.,Io'"na"" 307.90 3i9.86 I 4. reseioa,s,.,oew, iai. s.,,ien 2,046 1,985
- s. rom unn en.,,ia.a e s . . . ,, 4,472.79 4,575.',6 REA Form 7 (Rev. 3 38) PAGE I OF 7 P. Gli
-, . - .c ,
)
s REVISED 4/27/90 i 4 UsoA. LEA BORROWER DESIGNATION i 4 FINANCIAL AND STATISTICAL REPORT Mygg'ojrrimack asTaucTIONs . See REA EOu a. DeCOMbtr 31. 1989 i' PART C. BALANCE SHEET AMETB Af80 OTHER DEBITS LIABILITIES AND OTHER CREDITS l' Totai utnity pient in service.
. . . . . $105.288.531 as. uemowanies . . . . . . . . --
- 3. Construction work in eroecess . . . . 75.759.583 27. petrone,e capitai . . . . . . . $ 12.278.159
.i- 3. Totet utuity pient i1 + ) . . . . . $181,048,114 as. ooereting uerens . Prior vues . . . . --
- 4. Accum. provnion for oeorecietion ena Amort 25,770,754 as, operatine uwens .currem vow . . . (385,187)
L s. Net utsuty pient es .43. . . . . . $155,277.360 so. Non operatine uereins . . . . . . 497,667
- s. Nonutinty property Net . . . . . 143,339 31. otner werens eno tavities . . . . . (101,090,139) i
- 7. Invest, in Apoc. org. . Patronop Capitai . . 162,452 ::. Tow u.,vns & Eauma tas inru ans. $(88,699.500)
. . i
- s. Invest. in Apoc. org..otner.oenwel Funes ""
. 33. LonpTerm oeot REA (Net) . . . . . 63,031,219 1 s. invesi. in Apoc.orp..otner .Nonynwa: Funes 1,902,272 (payments.unsponea a 1
{ llL 10. other investments . . . . . . . 2,000 34 ton Term oat.oinu tNeti . . . . 148,937,652 l 11. special Funas . . . . . . . . 105,141 cesyments un.ooiNa s .. 12.' Totar other property & investments (s thru 11). $ 2,315,204 3s. Tot.i tonererm oeg g33,343. . . . $211,968,871 1
- 13. can .oenere. run is . . . . . .
117,912 a . Notes ,.y aie . . , . , . . , --
- 14. Cash . Construction Funes . Trustee . . . 711,067 27. Accounts payaie . . . . . .. . 31,766,558 as. species o oosits . . . . . . . 500 se consu,ne,s oeoos:ss. . . . . . . 325,796 as. temporwy levestments. . . . . . 4.728.703 as. otner current & acervea uamentia . . . 8,188,892
- 17. Notes RueiveDie . Net . . . . . . 1.500 ao. Tota current & Accrvea uanitia cu tnru am. $ 40,281.246 1s. Accounts n=elvente . Net sain of Enwgy. . 4.514.179 an. oolwrea creoits . . . . . . . 9,978,412
- 19. Accounts muovale . Net otner. . . . 427.743 42. uiweiianeous one,eting nosava. . . .
4 3o ustwi.is a swoones . Eiectric ana oiner . . 2.256.705 43. Tow unemties & otner crects (se + as +
- 31. Prepayments . . . . . . . . 1.209.521 an ,nro 423 . . $173,529,029
- .' other current & Accruoa Assets . . . . 42.007 ESTlh4ATED CONTRIBUTIONS-IN, AID.0FCONSTRUCTION !
. Totes current & Accrueo Assets na inru :: . $ 14.009.837 scence mecan,no of vow . . . . . . $ 485,462
{ )wveresoeits . . . .- . . . . 1.926.628 Amoums nueivea Tnis vow (Not) - . . . . (54.301)
. s otal Assets & other Deosts (5 + : + 23 + 34) 117't.UQ.024 TOTAL contrioutions in Ala Of Construction. . $ 431.I61 I PART D, NOTES TO FINANCIAL STATEMENTS THE SPACE SELOW IS PROVIDED FOR IMPORTANT NOTES REGARDING THE FINANCIAL STATEMENT CONTAINED IN THl6 REPORT. (17 ADDITIONAL SPACE IS NEEDED, V8K SEPARATE 8HEETJ l
I i I l I REA Form . 7 (Rer.10 36) PAGE 2 OF 7 PAGES s
I T
' s l
l REVISED 4/27/90 usOA aEA SQllROwER DESIGNATION i
~'
FINANCIAL AND STATISTICAL REPORT .H. + Mdinack j YLAR ENDINo REA uBE ONLy j tRucTions . s.asa son 0.como.r 31.19 8 9 j PART E. CHANGES IN UTILITY PLANT )
,, sALAnctns,openemo p yg anoirio ,, ,,,,,g,,,7, g,gqggRs n BALANCE END OF YEAR' Tion
/. ) f61 (e) /d) /el f4
- t. Land .nd L nd Rien tsooi. $ 547,244 $ 1.607 $ $ 548,851 H a i
- 2. structuru vid imore n.nu taeii , 1,292 1.292 3.48 l
- 3. suison Eauipment cas2) . . . 5,458,516 1,884,027 42,475 7,300,068 3.48 l
- 4. co . To .. .nd riniurei tas4L 21,467,070 984,726 400,033 22.051,763 13.48 i
- s. owmad.cwuctori.nd o== tassi 36,724,047 5,403.893 447.468 41,680.472 '3.48 l
- 6. Unae<eround Condui (366). . .
- 7. Uno..,ouna conducier a o== oen 1.841.916 162.826 28.913 1,975,829 3.48 l
- s. Lin.Trenitormwitaes . . 12.068.149 384.124 150.556 12.301,717 I3.48 l e, scoseei tseen . . . . 3.263.955 114.506 36.463 3.341.998 I3.48 l io, umri t370: . . . 3.790.417 294.512 23.587 4.061.342 13.48 it. insi.u.iion en consumers' Prwnim tru 951.428 106.577 16.457 I 1.041.548 i3.48 l
- 12. L md Proporty ecoweriPiven a72 5.004 I 5.004 I3.48 is. strwt Lignema is73) , . 315.238 34.672 17.566 332.344 13.48
- 14. sV8 total . oistrioution ti thru i3) .
is. L nd end Land Rien (seet . , g 86.43(276 tn9.7Ao i_Q.*171.470 11_161.51R $ 94.642.228 382.749 _ j'.. is. structurn nd impronmenu casoi . 2.382.150 211.290 249 2.593.191 43.00
- 17. ome. purnitu,e & Eauspment (3eil . 1.315.567 508.961 24.204 1.800.324 iVAR !- I is. Transporution Eauspnwat (382) . . 1.947.189 21.962 163 291 1.805.950 IVAR is. storm.Toce shop.Ger.go .nd L.bor. tory Eauipment (3e3. 304,3e61 552.SAR InR.557 2.15R 658.987 6.00 l I we.opermd Eauipmem taos) 169 3,*14 47.750 9.969 207.115 VAR
. ..=nmunic. tion tauipment (3en 191.250 01.570 4.444 480.376 5.0 01
- 22. Memneneous Eauipmeni(3es . . 21.346 1.011 24.357 6.00
- 23. other Tensibse Prouwty (3ee) , .
- 24. sustoTAL . o.nmi Pi.nt tia m v 23) 2s. inunginsa tsoi.302.303) . .
$ 7,164,173
$ 49,783
$ 993,101 $ 204,225 $ 7,953,049
$ 49,783 W h *
- 26. L.nd end Land Rights. Ro.di end T ciscaso.aser. . . . 115.080 115,080
- 27. siructura .nd improwmena c3s2>'
3.415 3,415 2. 75 ', as. suten tauipmem tasai . 133,866 133,866 2. 75
- 29. Towers nd Fistures nd Poles nd Fictura (364. 3ssi . . 401.622 193.508 11.588 583,542 2.75 l so. o.m d conductori s oevic. c3se , 678.848 1.114.729 11.654 1,781,923 2. 75 ;
31, Underground Conduit (367) . . .
- 32. Uno.reround Conauctor & oman (3est _
- 33. sustoTAL.Transmimeon Pt nt Mi WG i (2e mtv 32L . . . . .
- 34. Production Pl ni ste m (310 3 6:
$ 1.332.831 $ 1.308.237 $ 23.242 $ 2,617,826 M h!
3s. Production Pient . Nucle.r (32o . 326: . di- h l se. Production Pi.nt . Hydro (33o . 336) k M '
- 37. Production ri ni.otner t34o.346i !? l ss. Ain oeur View Pwe tim. io6 ion.ii4.iisi $ 25,645 $ 25,645 g 3o. sustotAt ti4,24+2s+33+34,su asi $ 95.006.708 $11,672,808 $1,390,985 $105,288,531 g@ ;
{ l aruction wor = m eroorm tion 79.084.323 (3.324.740) F Nw
$@h@$$$IMMM*N$sM$4d 75,759,583 N
^
.gp 4t. VoTAL UTILITY PLANT (39 + 40 $174.091,031 $ 8,348.068 $1,390.985 $181,048,114 QSW
' RE A Form 7 (Asv.12 81) PAGE 3 OF 7 PAGES l
UsoA. EA BORROWER DESIGNATION : s FINANCIAL AND STATISTICAL REPORT YEAR ENDiNG nEA uSE ONLY , i staucTIOms . See REA tou 2 December 31.19 i
-l }PARTF. ANALYS18 OP A OCUMULATED PROVISION FOR DEPRECIATION - TOTAL ELECTRIC PLANT
'T TRA ON ITEM P NT GENERAL PLANT p OTHER PLANT fa) lbl feb Idl
- 1. salince aeginning of Year. . . . . .
- 2. Additions . Depreciation Accruais Charged tot
- a. Depreciation Espense . . . . , .
D. Clearing Accounts and Otners . . . . 1
- c. Subtotal la + D) . . . . . . .
; 3. Less . Plant Retirementsi
- e. Plant Retired . . . . . . . .
D. Comoval Costs . . . . . . .
- 4. Suetotal (a + D) . . . . . . .
- 4. Plus Salvaged Materials . . . . . .
5.' TO T As. (2c . 3c + 4) . . . . . . .
- 6. Other Anjustments . Decit or Crealt . . .
l I F. Relance End of Year (1 + 5 2 6) . . I PART G. MATERIALS AND SUPPLIES l ITEM PY PURCHASED SALVAGED USED (Nrn SOLD ADJUSTMENT EN O EAR la) (bp rep Idl lei it) (g)
- 1. Eiectric
- 2. Other (ISS + 156)
- 3. Attio of Inventory Turnover - Electric
- 4. Inventory - Electric as prcent of Total utility plant item Id + M
- etem 41. part E X 100 =
PART H. SERVICE INTERRUPTIONS l AVERAGE HOURS PER CONSUMER BY CAUSE ITEM TOTAL POWER SUPPLIER EXTREME STORM PREARRANGED ALL OTHERS top (b) ret (do tel
- 1. present veer '
- 2. Five Year Averaes PARTl. EMPLOYEE. HOUR AND PAYMLL STATISTICS l
L Number of Full Time Emotovees d. Payroit . E steen.*d .
- 2. Emitoyee . Hours Worked . Reeuiar Time S. Payroll . Capitallied
- 3. Em*loyee . Hours worked . Overtime 6. PayroII . Other PART J. PATRONAGE CAPITAL PART K. DUE FROM CONSUMERS ITEM THIS YEAR CUMULATIVE FOR ELECTRIC SERVICE l I. Cen ral R etirement 1. AMovNT ovE ovER 60 DAvs 2 Special Retirement s
_3 ._ Total Retirements (1 + 2) _ , . _ . ___ 2. AMOUNT WRITTEN OFF QURING YEAR
- t. Tatr*nage Caeltal AssJened
@name Capital A w enable ff f ) j"
! g PART L. kWh PURCHASED AND TOTAL COST '
REA USE ONLY AVERAGE INCLUDED IN TOTAL COST NAME OF SUPPLIER SUPPLIER kWh PURCHASED TOTAL COST ~ PE R Wh FUEL COST CODE reents) ADJUSTMENT O ER CHA S 3 I go, c,vdless fa) (b) (c) Id) fel (f) (f) l
. Serv. Co. of NH 572,644,097 32,062,296 5.61 8,462,253 82,800 l ne Yankee 50,914,731 1,209,875 2.38 44,595 1
- 3. .s. Power Co. 6,519,000 348,847 5.35 123,254
*. Central Vermont 12,384,339 656,829 5.30 (39,725) 26,563
- s. Tot AL Sub Total 642,462.167 34.277.847 8,545,782 153.958 REA Form 7 (Rev. 1243) PAGE 4 OF 7 PAGES l
*. 'l REVISED 4/27/90 l Usma . cca SORROWER DESIGNATION l t
- FINANCIAL AND STATISTICAL REPORT yg4n f'u~a ,,, vgg ogy i sTaucTiONs" ."s =ca cou.a. December 31. 1989
{ } PART F. - ANALYSIS OF ACCUMULATED PROVISION FOR DEPRECIATION - TOTAL ELECTRIC PLANT STMIB TRA M gygg . p AN GENERAL PLANT OTHER PLANT l
<> <so reo .
<ros
- 1. matace s eennino ce v ar. . . . . .
$20,317.706 $2.740,066 S412,328
- 2. A"altions . D.or.Clation Accruais Char,.a tot
- e. o.or.ciation rio.a . . . . . .
3,116,764 340,529 36,956 i
- o. ciurin, Accounts ano oin r. . .- . . 176,438 '1
- c. suoiotai ia . o# . . . . . .
3.116,764 516,967 36,956 ,
- 3. Len 4 piant n.tirementii 1
- e. Piant notir.a . . . . . . . . lil72.294 145,457
- 3. c:.movas costi . . . . . . . 204.758 ,
- c. sunioiai n . h . . . . . . . 1,377.052 145,457 l
- 2. Pius saiva,.a uatoriais . . . . . . 151.676 800
- s. Tot AL inc . sc . ai . . . . . . . 1,891.388 372,310 36,956
- s. otner Aasuitments . o.oit or ce.oit . . .
- v. sannc. ena oe vu, <a s 3 65 . 22.209,094 3,112,376 449,284 PART G. MATERIALS AND SUPPLIES OP Y PURCHASED SALVAGED USED (NETi SOLD ADJUSTMENT ITEM. E O A r., re, <es ins res in (as
- 1. ti.ctrie 2.150.149 2.143.295 136.666 2.151,520 .
21,884 2,256.706
- 3. Otn.r (iss + 156)
- 3. inttili of inw.ntory Turnov.t - Ei.ctric
- a. Inventory - Ei.ctric as p're.nt of Total utility piant l itemna+ @ =.98 , i. m u . . o.,, 1 x too - 1. D l l l PART H. SERVICE INTERRUPTIONS i l AVERAGE HOURS PER CONSUMER SY CAUSE ITEM _ TOTAL POWER SUPPLIER EXTREME STORM PREARRANGED ALL OTHERS l ras es, ces reo 1.o
. pr no v.ar .31 4.06 .22 2.17 6.76
- 2. ri .v ur a rea. .72 4.56 .29 1.80 7.37 1 PARTl. EMPLOYEE. HOUR AND PAYROLL STATISTICS
- 1. Numoer ce run Time emoiov.m 240 a. payron . t uo.n a 4.515,511 ;
- 2. emvieve. . Hours worwea . n.,u.ar Tim. 413.628 s. pavron . caostana.a 2,156.578 !
- 3. EmTiov . Hourt Work.a
- Ov.rtim. 17.594 6. pavron . Otner 270,706 PART J. PATRONAGE CAPITAL L PART K. DUE FROM CONSUMERS ,
ITEM THIS YEAR CUMULATIVE FOR ELECTRIC SERVICE l f.s (b) I
- 1. G+n'rai R.tir.m.no 1. AMOUNT Duf. OVER 60 QAYs I L2 3.
so.ciai n.iir.m.at e T t-i neter.m.ntiet . r' S 363,206 l l l; +. retrin. capitai Awon.a .g . 2.552.401
- 2. AucunT wairTcN ore ouniNo vcan I L *g,,..ggg;.*W84p*'I ' g@$h 8 125,391 1
9.725.758 maaae capitae amenani. 1 PART L. kWh PURCHASED AND TOTAL COST REA USE ONLY AVERAGE INCLUDED IN TOTAL COST i NAME OF SUPPLIER SUPPLIER kWh PURCHASED TOTAL COST FUEL COST CODE PER h O ER CHA S (c,n ta; ADJUSTMENT ror credits; 1 13 166 res Ids ten in It) Irnce Forward 642,462.167 34,277.847 8,545,782 153,958 -
,an Mnunenfn 2.053.500 126.280 6.15 23,656 480 I
- 3. Misc. 54.162 1.600 2.95 68 ;
a neferred Fuel Che. (1.435.781) I s.'vovat 644.569.829 32.969.946 5.12 8.569.506 154,438 REA Form 7 (R e y, 12 43J PAGE 4 OF 7 PAGE5 1
T t US DA . K EA BO . ROWER OES!GNATION FINANCIAL AND STATISTICAL REPORT N.H M'errimack
, yg,n 'guoiuo ng, as outy Nsr a ucTiONS . See e E a g oM.2. December 31. 1989 PART idl. LONG. TERM LEASES (if additional space u needed, use separate sheet.)
LIST BELOW ALL " RESTRICTED PROPERTY"** HELD UNDER "LONG. TERM" LEASE. (If none, state "NONE") NAME OF LESSOR TYPE OF PROPERTY THIS YEAR 1. t.
- 3. TOTAL es "RE.YTRICTED PROPERTY" means eli propertnes other than automobass, truths. traitere. treetore, other vehicles lancluding sesthout ilmitetton enrereft and ships), office, seruse and warehouse space and office equipment (incluadar without limitetson compusers). "LONO. TERM" means lessee havsmg 1 unexpered terms of mon then 12 months iteking into areount terms or rentes et the opnen et the lessor. whether or not such Leesen have been renewedL PART N. ANNUAL MEETING AND BOARD DATA
- 1. Date et Last Annual Meetme 2. Total Numoer of Memoors 3. Numoer of Memoers Present at 4 was Quorum prnent!
"' L C vtS C NO
- 6. Numcor of Members voting oy 6. Totaa Numoer of soaro Memoers 7. Totas amount of Fees ana Empenses s. Does Manager mave written contrec't prosy or Mail for soaro Mempert PART O. LONG. TERM DEST - OTHER AND DEBT SERVICE REQUIREMENTS BALANCE BILLED THIS YEAR REA USE ITEM END OF YEAR ONLY ten INTEREST (6s l PRINCIPAL II TOTAL e tes (ds ges
- 1. -. c _~ emmerescoewve sw orwuryo'emm I i j
- 2. (D etM , _ _ . _. l l l l
- 3. Secesswai _.., ,n_ j j j g A. Otner IList separereive i j j j
- s. Balance Forward 1 i148.697,652i 4.732.136 I 243.128 i C975.264 6.Fnve A. & Lyman R. Hammond i 240.0001 18.025 i 30.000 i 48.025 i
; I I I I l
{ } oTAL esum ot t enru n 1148.937.6521 4.750.161 1 273,125 63.02.i.209 i PART P. CONSERVATION DATA i ITEM THIS YEAR THIS YEAR l LAST YEAR f el !bt l ITEM l LASTtelYEAR l Ibb
- 1. Number or Emotovees . Full Time I d. Payroli l
- 2. Number of Empioveet . part Time 5. Otmer Ennenses j
- 3. Totas Emoloveet . wours 6. Memeer Contacts PART Q. TYPICAL MONTHLY BILLS FOR ELECTRIC SERVICE '
- 1. RESIDENTIAL SERVICE (Form and nonterm for domestic and term use.)
SCHEDULE NAME AND DESIGNATION MINIM UM SILL
, , 250 kwn 500 kwn 750 uwh 1.000 kWh 2.500 kwn
- 2. COMMERCI AL SERVICS (Commereist 6sammas uteousamen 41 stores. offices, resteutunts. sernses, etc.. for slantma ena power purposa.J SCHEDULE NAME AND DE5IGNATION 6 kW 12 kW 30 kW 40 kw 50 kW 100 kw 750 kWh 1.500 kWh 6.000 mwn 10.000 kWh 12.500 kWh 30.000 kwn I l
- 3. INDUSTRI AL SERVICE tinauernal establishmana havsne aemanas of mon then 50 k W or consumpnon of more then 15.000 k Wh per month.)
SCHEDULE NAME AND DESIGNATION 150 kw 300 uw l 500 kW 30.000 mwn l 60.000 kwm 60.000 =wh l 120.000 erWM l 100.000 mwh l 200.000 Wwn f I I I ! 1.000 m W 4 5.000 kW 200.000 mwn I 400.000 kwn I 1.500.000 uwm I 2.500.000 k Wh j 1 i RE A Form 7 titer. 82 #J) PAGE 5 OF 7 PAGE5 _ _____-___----_---)
7 8 USDA.AEA 60<.r40WEH CESIGNATION 1
, FINANCIAL AND STATISTICAL REPORT N.H. Merrimack ygg, g3oino ,,,y,,ougy
~en uctioNs . s.e eEn EoM.2. December 31. 1989 i PART M.' LONG. TERM LEASES (If additional space is needed, use separate sheet.)
LIST BELOW ALL " RESTRICTED PROPERTY"" HELD UNDER "LONG. TERM" LEASE. (11 none, stese "NoNE"> RENTAL NA40E OF LESSOR l TYPE OF PROPERTY THIS YEAR
- 1. I 2.
- 3. TOTAL se " RESTRICTED PROPERTY" meene all properraen other than automo6sles, truche trasaare. tractore, other eekteJer (includine sosthout LLmstetton enrerott en$ shlpe), offlee, earmee and wanhouse space and ottlee eeutament (ineaudine without limitetson computers). **LONC. TEAM ** meane leanne hovme unsptred temse of more then i2 months Itehme into ereount somme of rental et the optson of the leseor, sehether or not eueh leases have been renewedl.
PART N. ANNUAL MEETING AND BOARD DATA
- 1. Q1te at Last Annual Meetmg 2. Totat Numoet of Memoors 3. Numoer of Memoors Present at e. was Quorum Presentf June 6, 1989 57,667 182 i O vEs O No
- 6. guge,r,og,emoori voim, ov j.. Yot.. ~umoer o, so... Memoe,, gt.g,.g,m,ogo,t;es..n.Eoenq..ooe.M.n.ee,-...w,,nonconm.
12.089 1 11 . s 46,480 I Om I No PART O. LONG. TERM DEBT - OTHER AND DEBT SERVICE REQUIREMENTS BALANCE l BILLED THIS YEAR REA USE ITEM ONLY END OF YEAR l INTEREST ll PRINCIPAL l TOTAL te) I 96) (e) I (d) te)
- 1. N.nonai nurei utmt co...r u.e nnanco coro.-suon 1 6,249,530 1,331,549 73,617 l 1,405,166 i i
- 2. se,=e= < a = NCR Credit Corp. I 298,873 28,703 79,092 1 107.795 I
- s. reoeres maaneine saa= l 142.005.507 3.354.826 45.216 i 3.400.042 I g otner ft. int s,pemeetvs Die f t al Control 1 3 3 . 9 8'A 3.172i 9.324 1 12.496 i
- s. Plymouth Guarantv SB Girst NH) 1 73.219 7.294 22.907 1 30.206 s.AT & T Credit Corp. i 1.04U 29H 365 I 656 AT & T Information Systems, Inc. I 35.495 6,296 12,607 i 18.903 l
{ lJTAL f Sum et i thru n Sub Total i148,607.652 4,732.136 243.128 i 4.075.264 I l PART P. CONSERVATION DATA ITEM THIS YEAR N YEAR l LAST YEAR ,., ,6, I ITEM i te, l THIS ,Y,E AR
- 1. Numoer et Emaiovees . pun time i 1 14. povron l 28.188 l 108.640
- 2. Numoer at Emotovees . Part Time I l 8 ls. Otner Escenses l $.$81 20.880
- 3. Tetas Emolovees . Mours l 1.708 l 't . A ( "I l6. Memoer contacts I
?AA 451 PART Q. TYPICAL MONTHLY BILLS FOR ELECTRIC SERVICE
- 1. RESIDENTIAL SERVICE (Form and nonform for domeetic and term uns.J !
SCHEDULE NAME AND DESIGNATION Residential MIN 4MVM e4 LL inci. O uwn 2s0 wwn s00 kwn 7s0 =wn 1.000 kwn 2.s00 kwn 5.61 19.78 43.05 l 65.46 87.31 218.42
- 2. COMME RCI AL SERVICE (Ceanmercial businese escoeushments: stores. offlees, restaurunsa, sorsees. ete. for Itennne and power purposes.J j SCHEDULE NAME AND DE54GNATION l- General 6 kw 12kW 30 kw 40 mW so kw 100 kw 7SO kwn 1.500 kwn 4.000 kwn 10.000 kwn 12J00 kwn 30.000 wwn 83.94 1 177.52 I 587.73 1 894.94 l 1.104.69 6 2.478.34 3
- 3. INOUSTRI AL SERVICE tinaustnal estokkenmena haume domeias of more than 50 k W or consumption of more than 15.000 k wh per month.J l SCHEOULE NAME ANO DESIGNATION I Primarv General 150 ww l 300 kw I 500 ww 30.000 uwn l 60.000 wwn ! 60.000 wwn I 120.000 uwn l 100.000 kwn l 200.000 kwn
( 3 0 4 . 3 't I 4.146.A6 1.000 mW I 4.788.AA i 8 . 2 0 't . 3 2 i 7.981.00 ! 13.822.20 l l 5.000 uw l 200.000 wwn I 400.000 mwn i 1.500.000 wwn l 2.500.000 mwn l 15.962.20 i 27.644.40 i 109.016.50 i 167.627.50 RL A Form 7 (ft er. Ut.e 3; PAGE 5 OF 7 PAGE5 Y
r 3 I 6 REVISED 4/18/90 ' Waua.Esa SORMOwtR OtSIGNATION I FINANCIAL AND STATISTICAL REPORT *[,*g,y,,o
' ~
,g, gg, g,,g y uctioses . asa sons 4 Decemoer 31. 198 9 PART R. POWER REQUIRE 8sIENTS DATA BASE Cof*8use R SAL 88 gagyggy CLAS$iPICAtl0N pggggggy ,,gggg appig ,,4 y jygg
/s) /6) (c) . (d) /el /f)
.. =. . c =:; 8.~a 52,624 52,716 52,784 52,779
- 1. T aicaa* s*" ...w se 48,305,907 52.800 52.849 42,736,331 44,933,670 35,032,327 27,396.482 4,296,592 23.567.947
..n, 3,739,040 3,864,714 2,920,202 2,326,030 1,967.493
. . .. e : - - _ ~
2, IosedentiW 5 ee . g,,,,,, ..== s..
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.. .. c a , s.~a
- 3. Irngetton $.les t awhs.d
.. . n n
. . =. c a.. s.~a 6.537 6,569' 6,603- 6,620
- 6.650 6.680
$'"iy*,"',',h, = = = s.. 17,934,215 16,669.321 17,355,860I 13.982.677 12.328.8851 13.348.678
..a.-a 1,542,478 1,423.392 1,453.6401 1.171.156 1.064.746I 1.139.561
. =. c a , s.~.e 8 8 8 8 8 8
f",M'y"I' .. w s.. 5,765,368 3,986,964 2.179.064 1.256.464 879.564 764.900
.. a .='* 422.148 230,558 100.8351 49.739 64.730 53.217
=..c a ~a 2,015 2,0171 2.017 2.021 2.n21 a 2.035 i
* $*,,'[$',"n*, * *= s.d 113,190 112,4201 113,226 113.399 113.878 114.377
. a.aa . {
I 21,665 21.534l 21.408 21.125 71.392 20.522
. =. e a ,a., n a I l
?. Other S.ies to Puese Auth. ' ' ' = so..
.. meanu.
l D A 8 er .,
.. No.Cea.un.m b.hwhsed e se } ;
.. No. Caansau.ee s.~.d .
9.51 or Res.les . ( i
- 10. TOTAL No Consumert Venes i. 9.)
61.184 61.310 61.412 61.428 61.481 61.572 l
- 11. TOTAL kwh Soid omes it .901 72.118,680 63,505.036 64,581.S" 'O,384,867 40,718,809 37,795,902
- 12. TOTAL R. venue Received From 5.ees of tiecinc saerw o.a.i ie . ne 6.282,883 5,414.524 5,440,597 4,162,222 3,476,898 3.180.793 i3. 0iner ti.cinc Revenue 159,167 145,132 140,362 139,655 131,551 135,868
*** ' 0*" u" 175,525 148,353 156,273 117,240 91,797 72,092 is. TOTAL sww eurch=d 79,252,264 72,001,238 59,495,822 52,339,407 36,815,869 40,669,893
- 16. TOTAL kWh Gener.ted ,
it. co,t ov Purea. . .nd oene .i.** 4,193,609 3,690,586 3,090,374 2,437,233 2.029.354 1.979.781 en.a,e kWh - Net
- 19. P. .som Aii an inour wmeeoi c Co.acideai & Noa.Co.ncioent 167,208 160,851 137,974 107,639 83,927 89,464 EL A Poem 7 (Ave.12 AJ) PAGE 6 OP 7 PAGES
_ _ _ _ _ - _ - _ _ _ _ . _ _ - _ - _ - _ - _ - _ - _ = _ . _ _ . .. . o, REVISED 4/27/90 usDA.REA BOWOWER DESIGNATION
' N.H. Merrimack FINANCIAL AND STATISTICAL REPORT ygan guoigo ,,,v ,ougy TauctioNs . s aca row.r. December 31, 1989 4 PART R. POWER REQUIREMENTS DATA BASE (Continued)
(SEE PRECEDING PAGE 6 OF REA FORM 7 FOR HEADINGS OF LINE ITEM NUMBERS BELOW)
,L'N 7 - JULY AUGUST SEPTCMBER OCTOBER NOVEMBER DECEMBER TOTAL NUMSIR .j t
in) Ik) 18) (D Iks (1) (Columns a thru l) ' 53,030 53,135 53,326 53.436 53.475 53.666
- 1. b. 23,529,851 25,183.775 25.460.621 24.575.210 26.086.225 39.536.639 386.344.985
- c. 2,095,493 2,232,404 2,178.209 2.217.708 2.330.570 3.524.269 33.692.724 i
- a. s
& b.
c.
- s. , s i
- 3. b.
c.
.. 6.716 6.741 6.736 6.805 6.862 6.895 '
4 b. 14.194.144 15.806.443 15.613.042 13.716.239 12.830.627 15.946.269 179.726.400
- e. 1.301.550 1.412.652 1.358.447 1.292.141 1.19R.899 1.422.166 19.781.02R
.. 9 9 9 9 9 9 ' t ' '
- 5. b. 1.114.500 1.181.964 1.172.800 1.321.528 2.475.108 7.494.144 29.592.16R
- c. 79.646 86.279 82.207 97.386 162.927 490.962 1.920.614
- n. 2,037 2.040 2.039 2.041 2.046 2.051 ' " ' ' ' "'
- 6. b. 114.461 114.523 114.402 114.490 114.765 115.127 1.16R.259 l
- e. 21.743 21.774 21.499 21.961 21.R6R 22.000 29R_601 ww, 7 b.
c. g, s s s@s
- 8. b, c.
g < s s
- 9. b.
c.
- 10. $('s '
Nk, sy s s y 61,792 (i 925 62.I10 62.291 62.192 62.621 ' J 11, 38.952.956 42.286.705 42.360.865 39.727.467 41.506.726 63.092.179 507.032.012 12, 3.498.432 3.753,109 3.640.362 3.629.196 3.714.264 5.459.597 51.652.877 149,409 '144,059 154.204 143,324 '137.750 43.801 1.624.282 64,661 75.790 67.352 75.174 92.560 156.163 1,292.980 44.811.705 46.016.534 41.864.416 46.693.010 47.919.026 76.690.645 644.569.829 16.
,, 2.272.798 2.331.447 2.116.504 2.423.851 2,599.768 3.804.641 32.969.946 e.
19, 93,631 96,843 97,616 108,130 128,156 154,297 167,208 { REA Form 7 (Rev.12 8J) PAGE 7 OF 7 PAGES
l 'II
- R l
m.w r.,on.. i r. in .t uv e n . e p. , .e. .i. .n. r. ie.in. E.VI.S.ED 4 /.18 i d / 9 0.
. ..=. i' and mannuinas me eau nonsed, sad cannpies.4 and re.aswing me seussiaan af infennauen Send annumanes sugarduig uins o.een m. mass er any emer aspost of uus eminecu n og anleimaison. menuding esgueuans tar seassing uns eusesr m P Cf Apisuses Cemenus Omsur. OLAM Roma 404 W. W.emingian. DO 2Et50; and to uis Omse of Managemern - % .ad s. den. p , R vi.,emtoMs sam oe2>.wasmas.n.oc anos. oma roam No,esmans sa, ausvez.
uso4nsA- BORRQWER DE 3GNAIUN j N.H. Marrimack I INVESTMENTS, LOAN GUARANTEES * "" " ' " " * " ' ^ " ^ " - AND LOANS . DISTRIBUTION New Hampshire Electric Cooperative, Inc. I RFD #4 Box 2100 . (AllInnstmenu Not Excluded by 7 CFR 1713. Subpart B) pyy,nugy, yy o32s4 9420 . i INSTRUCTloNS . Jensmus an engemal andfser aspear . AKA, Asmad a# eswan, . YEAR ENOING a***' m DECEMBER 31,1989 L INVESTMENTS i TOTAL CUMULATIVE .NCOME OR DESCRIPTION INVESTMENT TO DATE LOSS ! l*) (b) (es !
- 1. NONVTiUTY PROPERTY
- s. Telephone Building and Land $ 293.503 j b Green Street Building and Land I 11.115 e 1
- 2. INVESTMENTS IN ASSOCIATED ORGAN 6ZATIONS a Patronage Capital Certificates 162,452 i
e Canien1 Term certif.icates 1.901.272 ' c N.H. Business: Pemi Baker Resort Development Corp. 3,000
- 3. OTHERINVESTMENTS a.
l'
- b. ( i
- c. i !
- 4. TEMPORARY INVESTMENTS a Money Market Accounts 2,391,703 o Cartificates of Denosit i 2,337,000 i e i 3
- 5. COMMITMENTS TO INVEST WITr.iN 12 MONTHS. j NOT ACTUALLY PURCHASED '
a. O e t
- 6. TOTAL (ls,mr I #Arough J) { $7,100,045 l'
-. 11. LOAN GUARANTEES
- ORIGINAL LOAp BALANCE 1 NAME OF ORGANIZATION MATURITY DATE AMOUNT h.,Ta,d,8) !
tal (b) (c) id) l 1
- 2. l 3 6 i ,
j
.: TOTAL bs c .~ el l lit. LOANS ORIGINAL NAME OF ORGANIZATION MATURITY DATE AMOUNT LOAN BALANCE (a) (bl (cl (d)
- 1. EMPLOYEES. OFFICERS. DIRECTORS .
2. 3 4 5 6 TOTAL IV. TOTAL INVESTMENTS AND LOAN GUARANTEES
- t. TOTAL: 1.6.(b) + llAids $ 7,100,045
- 2. TOTAL UTILITY PLANT (REA Form 7. Parr C. Line 3) 181,048,113
- 3. PERCENT OF TOTAL UTILITY PLANT (//tdur /V1 + /V2./ z 100) l 3 . 9 2 'd' REA Form 7a (8 33) 1
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TRANSMISSION COOPERATIVE, INC.- J Financial Statements ; i d December 31, 1989 and_1988. 1
;- ' (With Independent Auditors'_ Report Thereon).
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s VERMONT' ELECTRIC GENERAi!0N AND: TRANSMISSION COOPERATIVE, INC, December 31, 1989 and 1988-N: l' Table of Contents 1 Page - ii. Independent Auditors': Report A-B'
. Balance Sheets C i ?:
t r : N__ - . Statements of Operations D , o; 2n Statements of Changes in Equities 'E l i il 11 Statements of Cash Flows F:
. c.
ii<--, Notes to Financial Statements- G-M f
, Wol , , Wai '
Suppl ementary Information: l, g 'i
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ll-!E ' 4:f;"> , Independent Auditors' Report on Supplementary Information N x
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- Schedule 1 - Administrative and- General Expenses 0 1[. . i n-nu d.
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' P.Os Box $64 Burhngton VT 05402
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INDEPENDENT AUDITORS' REPORT ( f
.The Board of Trustees Vermont Electric Generation and f Transmission Cooperative, Inc.: '
'1
.We have audited the accompanying balance sheets of Vermont Electric Generation and Transmission Cooperative -Inc. as. of December 31',1989 and 1988. and the i related statements of -operations, changes in equities and cash flows 'for' the - .
j? years then -ended. These- financial statements are the ~ responsibility of the _! Cooperative's management. Our responsibility is to express -an opinion ontthese j financial statements -based on our audits. V .We' conducted our~ audits in accordance with generally accepted auditing stan- + i
-dards' and Goverrinent Auditing Standards, issued by the Comptroller .Generallof o _
the' United States. Those standards > require that we. plan and perform the audit j to obtainLreasonable assurance about whether the financial statements are free
- of materia 1 ' misstatement. An audit includes examining, on a test basis, evi-
- dence supporting the amounts and disclosures in the financial statements. An
, - audit also includes assessing the accounting' principles used and significant . y
' estimates made by management, as well as evaluating the overall financial ~ state- ^
ment. presentation. We believe' that our audits provide a reasonable basis for: s our opinion. - ' As described in Note 8 to'the financial . statements, the Cooperative has not-recognized estimated expenses of $950,000 in 1989 and $5,700,000 in 1988 ' w trelating to the. estimated remaining costs to be incurred in connection with,the c construction of Seabrook ' Unit No.1. In our opinion, generally accepted accounting principles require that such expenses be recognized. y : In our opinion, except for'the effects of not recognizing the expenses on-
, . Seabrook Unit No.1 as discussed in the preceding paragraph, the financial 4 1 = statements -referred to above present fairly, in all material respects, the f financial position of Vermont Electric Generation and Transmission Cooperative, !
Inc. at December 31,1989 and 1988, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted . accounting principles. wm , A-hhhd , $7l,06 .,.
/ 94
yp: , f* :- 2:- !
- 7 )' 4 I k)' 0 The accompanying financial statements have been prepared assuming that Vermont U Electric Generation and Transmission Cooperative, Inc. will continue as _ a . going concern. _- As discussed in Note' 9 to the financial statements, the Cooperative's . ,
net capital _ deficiency,_~its inability to meet its obligations, and the per- , Lsistent delays- and cost . overruns in the Seabrook. Unit; No. '1, in which the :; Cooperative. holds _ an ownership _ interest, raise substantial doubt: about-its abi-n. lity to continue .as: a going. concern.; Management's plans in regard ,to these mat-3
- ters'are described in Note 9. The financial statements donnot include any adjustments relating to the recoverability and classification _ of reported asset 1 amounts or the amounts and classification of liabilities that might result from ithe outcome of this uncertainty. !
G As d' iscussed in Note 9 to the financial statements, the Cooperative is a defen- e dant. in various lawsuits. - The ultimate outcome of such litigation cannot p.re- !
;. 1 sently.be determined. Accordingly, no liability, or loss, that mayl result upon adjudication .has beenl recognized in the accompanying financial' statements.
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{ J . 1 yg e y ' M ' [ '
. VERMONT ELECTRIC GENERATION ANr, d
14 ' ' TRANSMISSIONCOOPERATIVE,INf,.l j h, r
. Balance Sheets. !!
- q ,
J
.: December 31, 1989 and 1983: qi m A ~
j; n
= Assets 1989 1988-M ' Electric plant, at cost: ,
' Electric: plant"in : service :
$31,813,563: 31,841,228: ,
! Construction work.'in progress - '
Seabrook-Nuclear' Power Project (notes 8 and 9)' 28,506,869 25,475,709 .5 cy t 60,320,432. 57,316,937-1 ' Less accumulated depreciation 4,137,744 '3,'104,954 j a i Net electric plant 56,182,688 54,211,983- -t Other investments'(note 2) 296,141 313,733 ' N t >
- Current-assets:
- Cash 572. 52 ,
Cash restricted for construction 7,820- :320
, Accounts ~ receivable - affiliated cooperative 15,761,383 11,464.127; ,
Accounts receivable - other 7,600- 6211 1 Prepaid' expenses 61,936 70,572*
, y. 3 f
.- Total current' assets- 15,839,311 11,535,692.
- T ,
jDe'ferredl charges,1 net -of amortization (note 3) 2,875,269 2,976,865'
- w $ <
j' Total assets-(notes 4 and 5) $75,193,409 69,038,273 - l Liabilities and Deficit- ) 3 , , Equities (deficits):- Memberships > issued and subscribed 30 130-. , Y 'Other deficits _ 326,454) ( (326,454) Total deficit < (326,424) -(326,424); , Long-term debt.(FFB), excluding current installments (note 4) 28,495,917- 28,580,035 Current: liabilities: I Line of-credit,.'9.75% in 1989 and 8.6%- in 1988 (;FC) (in default) (note 6) 5,268,179 5,268,179-Current installments of long-term debt (FFB) (note 4) 89,011 66,088l
.Long-term debt (REA) (in default) (note 5) 14,446,119 14,446,119 Accounts payable '
7,372,002 6,202,590 > Accounts.~ payable'-~ affiliated cooperative 367,731 259,227 Advance payable '- af f.iliated' cooperative 1,812,000 1~,812,000 ,
' Account payable .REA. guaranteed' debt (note 4) 10,155,776' 7,483,839 ,
a Accrued interest 7,513,098 5,246,620 ti Total current liabilities 47,023,916 40,784,662
.D Q Commitments and contingencies (note 9)
Total liabilities and deficit $75',193,409 69,038,273 See!accomp'anying notes to financial statements.
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-Years ended December:31,/1989 and 1988;
- 4. i t 'h-D
~
1989 -1988-
-1 Operating revenues (note 7) $10,018,235 10,681,573 g t
'1
; 0perating expenses: l
. Purchased power (note 9) 3,590,184L 4,661,750' i[ ' Nucl ear! generation 574,272 583,458l k'
. Hydro generation 105,281. 142,076' Transmi ssion 594,797. 577,637 l Consumer : accounts Administrative; and general 1,105- -918 j 791',388-n' s ' 626,014' l
' Depreci ation 817,719 814,4814
;AmortizationL -112,368 112;3681 3 ~
W> .
. Total operating expenses 6,587,114
=
4,.f 7,518,702 1
\
Learnings from operations 3,431,121 3,162,871' d i V a * ,50therlincome: ..
- Ir.terest/and dividend income' 35,875 35,871 a
x >
,q
+ interest charges
! Interest /on-long-term debt 3,319,374 3,324,749 o
1 j Allowance for funds. used during construction (1,014,857) (1,016,447): :l
,0ther interest 1,162,479 890,440 '
, .o d
Net interest charges 3,466,996 3,198;742 1' Net earnings 5 - -- 3 H 5, Pi ' b 'See accompanying notes to financial statements, l 1 a j
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- VERMONT ELECTRIC GENERATION AND I' '/1 '
TRANSMISSION COOPERATIVE, INC. . ,j
; Stat'ments e of Changes"in Equities ;
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- Years ended December 31, '1989 and .1988 1 t-1 l
9 1 a. Other Equities-Memberships _ Issued and' Donated . Earnings 1; Subscribed Capital (Loss). 'I
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' l Balance at December.31, '1987 o40 10- ( 326,474) ;
1 ic .(
'fi ' Transfer of. membership to ,o e_,/-
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' donated capital. '(10) 10 -
a
=
LNetearningsfortheyear - - -
, ou s h Balance at December 31','.1988 30 '20. 1326;474) j.p ((
cjt LNet earnings for.the year - - - y a: N
/r Balance at December 31,'1989 30 20 (326,474) l ,
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" VERMONT ELECTRIC GENERATION AND TRANSMISSION COOPERATIVE INC.
; ,-a Statements' of Cash Flows '
(j' _ Years ended December 31,1989 and 1988 1989 ~1988~ Cash flows: fre;n operating activities: - ue t earnings . Noncash expenses . included in earnings: Depreciation- 1,035,390 1,053,965 , Amortization of deferred charges 112,368 112,368. ;
- Changes'in assets- and liabilities: 1 Increase _in accounts receivable -
affiliated cooperative (4,297,256) .(4,214,878)- ,
- Increase in accounts receivable - other (6,979). .
(26) ! Decrease in'prepaidLexpenses 8,636 36,662- , Increase in-deferred charges (10,772) (6,651) , Increase in accounts _ payable - other 1,169,412 1,099,854-Increase in accounts payable - affiliated cooperative 108,504 103,082 Increase in accrued interest 2,266,478 2,499,896- , Total adjustments 385,781- 684,272 '! Net cash provided by operating activities 385,781' 684,272 i. Cash flows ~ from investing activities: - A Insurance proceeds received on plant in service claim -- 125,000' ' V Additions to electric plant in service (94,914) (142,203)
- Retirements of electric plant in service 119,979 -
F Additions to construction work in progress (3,031,160) (2,704,835) > Return of -capital on VELC0 Class ~C preferred stock 17,592 23,456: Decrease (increase) in cash restricted for construction (7,500) 47,000-Net cash used in investing activities (2,996,003) (2,651,582)
-Cash. flows from financing activities:
_ Increase in accounts payable - REA guaranteed debt 2,671,937; 1,985,189 i Repayment of long-term debt (61,195) (36,608) Net cash provided by financing activities 2,610,742 1,948,581 Net increase (decrease) in cash 520 (18,729). Cash at beginning of year 52 18,781 ! Cash at end of year S 572 52 Supplemental cash flow information: i Cash paid during the year for interest $ 37,242 100,687 {}s .See accompanying notes to financial statements. h
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, ;. : VERMONT ^ ELECTRIC GENERATION AND' S TRANSMISSION COOPERATIVE,;~INC.
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~ Notes to Financial Statements i
-December 31, 1989-and-1988 ;
-(1);- lSumary of. Significant Accounting Policies (a) Regulatory Jurisdictions ;
Vermont Electric Generation and Transmission Cooperative, lm (the Cooperative). I is under the jurisdiction of the Federal Energy Regulatory Comission (FERC), the Rural Electrification Administration (REA). and the Public-Service Board [ of Vermont (PSB).~ { (b) Revenue Recognition The Cooperative recognizes- revenues for electric service in the. months that bills are rendered.as opposed to recognizing revenuest in the month that' service
'is rendered. , This method of recognizing energy revenues' is consistent with other rural electric cooperatives.
(c) Depreciation ; The Cooperative follows the policy of charging to operating expenses annual l amounts of depreciation-which allocate the cost of the. electriciplant over its-- A. estimated useful life. The -Cooperative employs the straight-line method -for
%[
i determining the annual charge 'for depreciation. The estimated useful lives l for electric' plant are as follows: < Years' Millstone Unit 3 (jointly-owned) 35
.N. Hartland hydro plant 50 4
' N, Hartland tie line. 50
. - Highgate investment - 10 Millstone nuclear fuel is charged to operations at a rate of -$9.43 per megawatt. '
hour of. generation. . a (d)-Amortization
.The Cooperative follows the policy of charging to operating expenses annual amounts of amortization which allocate the cost of various deferred charges over periods established by management for rate-making purposes. The .
Cooperative employs the straight-line method for determining the annual charge I
., for amortization.
- (e) Corporate Structure 'and Income Taxes 1
The Cooperative is a nonprofit and nonstock membership corporation organized q
- under' provis!ons of the Electric Cooperative Act of Vermont. The Cooperative.is 19 / exempt from Federal income taxes in accordance with the Internal Revenue Code, l 1
V Section 501(c)(12). I ( m (Continued)
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- VERMONT ELECTRIC GENERATION AND-t TRANSMISSION. COOPERATIVE, INC.
.' 3' Notes to Financial. Statements'-
e% i N (f), -- Allowance' for Funds Used During Construction'. Allowance!for. funds used during construction is the interest costLof borrowed. ! ifunds used to fund construction. in progress. - Thelinterest costs are' capitalized ! t
'in the same manner as other construction costs, with ; credits to interest expense. J
, '(g)- Decomissioning . .t The Cooperative pays-its share of estimated decomissioning costs _ for the- j Vermont Yankee Nuclear Power Plant and the Millstone Unit No. 3 Nuclear Power . . !
Plant. Such payments are deposited in escrow and trust funds, and are adjusted; ! periodically based upon adjustments to estimated decomissioning costs of the pl ants.'
-i
( 2) Other Investments- I n The investment account includes the following, at cost, at December 31, 1989 and i 1988: 1989 1988 National Rural' Utilities Cooperative Finance , Corporation (CFC) membership _ $ 1,000 1,000 a National Rural- Electric Cooperative 4
- Administration membership- 10" 10 D CFC capita 1L term. certificates 17,167 17,167; h- '
CFC patronage capital certificates VELC0 class C preferred stock
'60,9961 216,968 60,996~ q
~234,560 -y 5 296,141 313,733 --
Cost approximates market value..where available, at December 31, .1989 and 19881 y Because the Cooperative-is in default on .its obligations to. .the Cooperati.ve ' Finance Corporation-(CFC), as disclosed in note 6, all amounts reported aboveas investments ' in CFCiare subject to CFC's' legal rights,: including off-set and recoupment. . (3) Deferred Charges-t . The balance in deferred charges consists of the' following at December 31, 1989 and
- 1988:.
Amortization <l Period 1989- 1988
-l Seabrook Unit No.- 2 1985 - 2015 $1,977,056 2,045,466 Pilgrim Unit -No. 2' 1984 - 2014 843,478 878,984 Preliminary. survey - load control None 52,415 52,415 Other 2,320 -
fp $2,875,269 2,976,865
~'
The costs associated with the abandonments of Seabrook Unit No. 2 and Pilgrim Unit . No. 2 are being-recovered in ratt.: on a straight-line basis over thirty (30) _ years.. J n (Continued)
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a VERMONT' ELECTRIC GENERATION AND t 4g' TRANSMISS10NLC00 PERATIVE,'INC.' ,; M Notes- to: Financial Statements ' i ? ,y . 1
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(4) Long-Term Debt- - The Cooperative was indebted as follows at December 31, 1989.and 1988:1
- 1989 1988- l Mortgage notes payable - Federal Financing Bank ,,
(FFB)..due through 2019 at various rates of. ! interest averaging 9.'10% and 9.08% at . a December 31,1989 and 1988, respectively $28,584,928 ~28,646,123 l i Less current installments 89,011 66,088. ' Long-term debt, excluding. current installments $28,495,917 28,580',035 l Debt service on-the FFB mortgage notes has been paid since early in 1986 by REA, as ., guarantor of the obligation. The account payable to REA .for reimbursement of debt 1 service payments made on behalf of the Cooperative was $10,155,776 and $7,483,839 at-
, December 31, 1989 and .1988, respectively.
~
The following is a schedule of minimum required payments on long-term debt for the. <
. years ' ending December 31: 4
' P ri nci pal Interest , j t
1990' $ 89,011 2,590,435: l 1991 206,443- 2,578,160: 9 N V 1992 273,084- 2,557,830 i 1993- 308,458 2,532.198v 1994 '325,015 -2,S15,641 i
- Later years 27,382,917.
$ 28,584.928- '
u
~
All of:the assets of the Cooperative are ' pledged as : security under these notes and the notes discussed in note 5.
, , , (5) 'Long-Term Debt (In Default)
Long-term debt (in ' default) consists of the following at December 31, 1989 and 1988:- 1989. 1988
, Mortgage notes payable - U.S. Department of ,
Agriculture Rural Electrification Administration .. i ,
-(REA), 5% mortgage notes, due through 2016 $14,446,119 14,446,119 a The Cooperative is in uef ault 'due to nonpayment of debt service on these: notes in t cumulative amcunts, including-interest, of 13,653,693 and $2,708,482 in 1989 and 1988, respectively. Because of the default, the balance has been classified as a current obligation at Duember 31, 1989 and 1988. , . p. All ~of the assets of the Cooperative are pledged as security under these notes and the notes discussed in note 4 Q
(Continued) 1 s
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' VERMONT El.ECTRIC GENERATION AND-7 TRANSMISSION COOPERATIVE, INC. 4
[ g j] Notes to Financial Statements y (6)L;Line of Credit (In Default)
~
The Cooperative is in default due to nonpayment of principal and interest .on a line : of credit agreement with the National Rural Utilities' Cooperative Finance CorporationD
- . (CFC).- The. maturity date.under this agreement was March -31,1986. The Cooperative '
was-indebted under this agreement as follows at December 31, 1989:and.1988: ,j 1989 1988 f Principal- $5,268,179 5,268,179 Accrued interest 2,115,209 .1,403,074 E (7) Affiliated Cooperative Certain officers and trustees of this Cooperative are.also officers and trustees of the' Vermont Electric Cooperative, Inc. '(the VEC), an affiliated cooperative. Transactionsibetween the Cooperative and VEC, made pursuant to tariff agreements,. are summarized as follows for the years ended December 31, 1989 and 1988: s :
.Q v
1989 1988 Sales of. energy to the VEC $ 8,847,257 8,659,878- d
- Services provided and costs allocated by the VEC 203,893 140,292 Interest payable'on cash advance 129,452 93,751.
.The Cooperative sells the majority of the power it purchases to'the VEC. Through its .t membership in and wholesale power contract with the VEC, the Cooperative is able to pass all costs, margins:, and reserves, net of revenues billed to others, on to VEC. '
Under this contract, the VEC is committed to'the Cooperative for payments to the. Cooperative of principal and interest on the Cooperative indebtedness. The obliga- 1 tions"of'the VEC to the Cooperative have not been met. Its ability to meet these obligations in the future remains uncertain, since, in order to do so, the VEC would 4 need to charge rates substantially higher than those of other Vermont utilities. 1 (8) Cost: Recovery on Investment in-Seabrook Unit No. I l At the request of the REA, for the years ended December 31, 1989 and 1988, the Cooperative did not recognize as an operating expense additional estimated remaining I 1 costs-of $950,000 and $5,700,000, respectively, to be incurred in connection with-the I construction of Seabrook Unit No. 1 prior to assumed operating dates as' required by generally-accepted accounting principles. At December 31, 1988, the assumed operating date was January 31, 1991. During 1989, the assumed operating date was '
- changed to April 1990, which accounted for the decrease in estimated remaining costs. l O- Expensing these costs would increase the Cooperative's expenses at December 31, 1989 i d and 1988 by approximately $950,000 and $5,700,000, respectively. l (Continued)
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,m VERMONTIELEC'TRIC GENERATION AND,
-j
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s i ' TRANSMISSION-. COOPERATIVE, lNC.
~
. Notes -to Financial Statements' Q l Conunitments and Contingencies
]
(A) Going Concern- j E As shown in Lthe financial statements, the Cooperative's currentflihbilities f exceeded its current assets by $31,184,605. and $29,248,970 'at. December. 31,'1989 1
' and 1988,.respectively, and'its total liabilities exceeded its total assets by' :
$326,424 The Cooperative's- af filiate, the VEC, has not met its obligations- to ,
uncertain. ' Additionally, as discussed in notes 4',.5 and 6, the Cooperati been ' unable-to meet or is in def ault on its debt obligations to variousilenders. ; As discussed elsewhere 'in note 9,' the Cooperative is also a party to -various legal = actions,- and. holds an ownership interest in the Se3 brook- Nuclear Power , Plant' Unit No.1~, which has experienced persistent delays and -cost overruns. - These factors, among others,. indicate that the Cooperative may be unable 1 toLeon-tinue~ in existence in its present structure. .{ Management is negotiating with its lenders concerning possible debt restruc-turi ng. During 1989, management of the' Cooperative and the REA have . held. m
- 3 substantive discussions and reached tentative, oral agreement' on various; factors. '
relevant to the restructuring. Also during 1989, the CFC, another , lender, .has- -.'
- put forth a proposed resolution for debt restructuring. .As of December 31,. <
>w '1989, however, no: formal, finalized agreement has been. reached. A successful. -
conclusion' to these . negotiations cannot be assured, and, in the event of failure,- A[. 1 filing byt the Cooperative under Federal bankruptcy statutes is likely, t v. (B) Power Contracts " The Cooperative obtains power primarily from' other utilities under contractual arrangements. In addition, the Cooperative obtains power from its hydro genera-tion facility, the North Hartland Hydroelectr ic Power Plant, and its 0.35% .. ownership interest in the Millstone Unit No. 3 Nuclear Power Plant.- A brief' 'I suninary of the purchased power agreements as of December 31, 198911s as fol Sws: The Coop'erative obtains power under a life-of-the-unit purchase contract from the Vermont Nuclear Station (Vermont' Yankee), operated by the? Vermont Yankee Nuclear , Power Corporation and from the Merrimack Unit. No. 2 (Merrimack), wned and operated by the Public Service Company of New
-Hampshire. The contracts expire-in 2002 and 1998, respectively. The 'j y? Vermont Yankee-and Merrimack purchase contracts are take-or-pay contracts. l t
which require the' Cooperative to pay its proportionate share of the fixed j
- , costs of such facilities even during periods when power is not being l q ,
generated by such facilities or being delivered under such contracts. i i Such fixed costs represent' a substantial portion.of the total cost for power frem these sources. The Cooperative has other take-or-pay contracts, with Connecticut Light ! and Power Company, expiring in 1993; and with the Vermont Department of l Public Service for Hydro-Quebec Power, expiring in 1995. The Cooperative L is also a joint owner of a direct current converter terminal station and Q transmission line in Highgate, Vermont. (Continued)
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w VERMONT. ELECTRIC GENERATION AN0i j" 6 --TRANSMISSION ~ COOPERATIVE,.!NC.
'T Notes .to Financial' Statements d
-).
7 f In prior years, the Cooperative had: take-or-pay comitments in . excess of. its j
, , needs. .During 1988', the Cooperative terminated its contract.with one of:its :!
power sources.- As a result, management [ believes that part of the issue.of.- > _ excess capacity has been resolved. However, the' Cooperative's mix of power: l is still not optimally- priced. Management of- the' Cooperative 11s continuing' to pursue options to optimize its power mix. Management's primary goal -i s- jl successful completion of debterestructuring negotiations, as1 discussed in a! - ~ note 9(A),' as any reconfiguration of power contracts will be dependenti d upon the debt restructuring. (C) Seabrook Nuclear Power project l Seabrook -Unit;No. ,l'(Seabrook) represents a major comitment for the.
,, Cooperative, as-a 0.41259% owner. Seabrook has been subjected to delays and'. }
cost increases since construction began in 1976 with the Public-Service _ Company, a of .New Hampshire _ (PSNH) as lead owner.
. On January 28, _1988, PSNH filed -for pro. = r tection from its creditors under_ Chapter 11 of the Federal Bankruptcy, Code. 1The 4 financial difficulties of PSNH could adversely affect 1the Cooperative's par- :
ticipation in this project. The . resolution of PSNH's- bankruptcy -proceeding; . l could precipitate'or accelerate the claims which other joint owners may havej ,.i against the? Cooperative, as discussed below. 1 j-n . M; ~ The Nuclear Regulatory Comission staff has recomended a full power operating'- i
'M license'be granted to Seabrook Unit'No. 1. The Comissioners will vote on this 9 recomendation in early 1990,:and, should the vote be favorable, it is' antici-pated that the plant may become fully operational as early as April 1990,
,t m
Through' December 31, 1989, the Cooperative: incurred costs'of $28,506,869 toward 3 construction of the Seabrook .No.1- project. Debt obligations incurred by j q the; Cooperative to finance investment in this project have not been met:(see' ~; notes. 4, 5 !and~ 6). The Cooperative ceased making Seabrook construction payments 3 7' in A anuary, 1986. Advance payments have been made by other joint owners to. ' cover the shortfall, and, during 1989, the Cooperative has been, contacted by attorneys for certain other joint owners of Seabrook, who have proposed that the Cooperative assign its interest in Seabrook to repay them for.these costs. The , y Cooperative believes that the amounts demanded are too high.- Such disputes are '
. subject to arbitration.
F ' At present, management is pursuing various options with respect to its ownership [ in Seabrook. As part of the restructuring agreement discussed in note 9(A), thel
& Cooperative may attempt to sell its ownership interest in.Seabrook. Management 4 has comissioned a study, which placed a range of values on this ownership
- interest. It is probable that the asset will not be sold for its full invested' e
' cost. Any such transaction would require extensive -regulatory approval. '
Alternatively, the Cooperative may also attempt to sell its share of the plant's ' output. To date, no offers to purchase the plant's output have been solicited.
.Q: ,
-L-(Continued)
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t i ~s -J 3 c VERMONT- ELECTRIC GENERATION AND - m > TRANSMISSION COOPERATIVE, INC. pfg, Notesito Financial Statements - K} ' (0)) Regul'at'ory ! Matters' g TheLVermont PSB is investigating least-cost investments,' energy efficiency,'and '
< conservation and management of demand .for energy for all utilities offering' . >
electric, or gas servicescin. Vermont. : One of the issues under consideration is. q "whether the PSB should enforce some form. of moratorium with respect to acquiringi ~
.new capacity, pending the exhaustion of _ economically justified' demand l side'mana 1 4 gement alternatives. Such a moratorium,' if applied to the Cooperative, couldl 'l
, have a ' negative impact on its ability to restructure its power sources' and-
- finances, as discussedLin notes 9(A) and (B). :
a E Various other matters are also pending before the PSB. .In management's >+ estimation, none of these -matters will have a material adverse ef fect- on the .. Cooperative's financial: statements. - (E) -Other Legal. Matters
]
The Cooperative h'as not been able to obtain directors' .and officers' liability insurance since at least August 24, 1986 The Cooperative's bylaws require that :l
]
-it indemnify current and former of ficers, trustees and -employees against expen-ses, judgments, fines and _ settlements incurred by -reason of. the fact that such a .
person is a current or former officer, trustee,. or employee. This.may give rise - to significant Lliabilities to the Cooperative, p V The Cooperative'hss been named in :a complaint alleging breach of a letter of < f
. intent /toJpurchase:the output .of a certain hydroelectric' generating facility.
~ ,
-Judgment is demanded jointly against the Cooperative a.nd its' affiliate for
, $3,275,000,;plus interest and costs. During'1989, a trial on the issue of :l liability,' but' not' damages, has resulted in verdicts against the cooperative an,d the VEC.- Litigation in this case continues with an . appeal by the !
' Cooperative <to the Vermont Supreme Court, and the -outcome of such -litigation has 4 yet to be; determined.
Several matters .of litigation have been brought against'the Cooperative tin
. regard to.the North Hartland hydro electric generating facility. During 1989, several claims- against the Cooperative in connection with this facility were '
s'ettled, primarily by negotiating payment of a lesser dollar amount with credi-- tors.: Liabilities related to these claims of approximately.$1,287,000 remain on the books of.the Cooperative. Management is negotiating' settlement of these
~
remaining claims. The Cooperative is also a party to various other litigation. Should this liti- _ gation be decided in a manner unf avorable to the Cooperative, the~ impact- on the Cooperative's financial position could be significant. Additionally,-the < Cooperative may also have a number of unasserted claims against it, upon which counsel is unable to give an opinion as to the probability of assertion. i
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o> )- 733T ay ( b& lll% ~ j l N Peat Marwick f h ,Q [! Certified Public Accountants j '_ r
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[ . ' One Church street ('G
- El Box 564 -
[7 Bunu'qton, VT 05402 i b TK q [' p INDEPENDENT AUDITORS REPORT ON SUPPLEMENTARY 4INFORMATION-
, 9 c .
(
- The Board of T'rustees
, Vermont Electric Generation and Transmission Cooperative, Inc.:
4 1 We have audited .and. reported separately herein on the financial statements of
- Vermont Electric Generation and Transmission Cooperative, Inc. as of and for the G _t : years ended December. 31,'1989 and 1988.
L Our audits were made for the purpose'of forming an opinion on the basic finan-cial, statements of > Vermont Electric Generation and Transmission Cooperative. M Inc.;taken' asya whole.: :lThe supplementary informatior, included in Schedule 1lis , o
, presented for purposes of.Ladditional analysis and is not a. required.part ofLthe
~
. basic: financial statements. Such supplementary information has been. subjected' V -to the auditing procedures- applied in the audits of the' basic' financial: state-ments and, in our opinion,jis fairly . stated in all material respects in relation -l
, to the' basicL financial ~ statements -taken as a whole,
, m 1Thejaccompanying financialLstatements and supplementary information have been ,
prepared' assuming-that ' Vermont Electric Generation and Transmission Cooperative, u
- Inc. will' continue as a: going, concern. .As discussed in note 9 to the financial .;
statements.: the Cooperative's recurring losses from operations and net. capital.
#g
=
, y. ! deficiency raise substantialidoubtf about its ability' to continue asia going. con-- J y,
~
.cern. Management's-plans in regard to these matters are also described in note- 1
. .j 9. LThe financial statements- and supplementary information do not include' any t y j!r. madjustments relating to the recoverability and classification.of reported asset -
1 amo'ntscor u the amounts.and classification of liabilities that might result from- ]' L f , 3 : ithe outcome of thiseuncertainty., 4 R$N / . .. . j
. As -discussed in note 9 =to the financial statements; the Cooperative is a defen--
"j' dant in various lawsuits. TheLultimate. outcome of such litigation cannot . .i
,-presently be determined. Accordingly, no 1iability, or loss, that may result 3;1..g. 6 ;upon' adjudication has' been recognized in the accompanying financial statements. .
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( i. e QN February 9, 1990 B V- )y$ '
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a + M '~ %j y + VERMONT ELECTRIC GENERATION AND ' p.f s J w TRANSMISSION COOPERATIVE, INC.<
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Administrative and General -Expenses-g
", % Years ended. December 31, 1989 and 1988' i a A
m. ,s u lM , Change from , 4 Prior Year
,3 1
fg 1989- % Amount 1988' ; [ ddministrative and general-expenses: n . i , . . .. .. t y 1 Property taxes $ 265,947 10 .23,691 242,256.
. Administrative; and general? salaries 78,794 10 6,888. 71,906; A o f% Office supplies and: expenses 5,218- 1 57l 5,161; y.
.if Outsidel services .297,729 42- 88,005 j.
, Property insurance 32,036 0 138 209,724j#.;
,31,8981 S
- Injuries andfdamages 50,661' -(0) .(114) ;50,775L l' '
Regulatory commission 44,012 580? 37,542' .6,470- 1 Miscellaneous 863= (2) (17) .880: J
. Association meetings -3,576 224 2,474- 1,102:- 'j i!( i Directors' expenses ,
'12,552 115 6,710: 5,842' ;
W 0,;
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s Total administrative and < general expense ~s S 791,388 26 165,374- 626,014 q r a; . y p d. , , } l- :j r 31 N: k m ~4 ll"}
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MUNICIPAL LIGHTING PLANTS nrceivrosp.; 4 1 Hudson ucur a PowEn DEPr.L j u
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. e I HUDSO.'s', Mass, Efje (Commentocaltfj of fMaggatfjusetts l
.. 3 RETURN .
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, OF THE - 4 i
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- . . TOWN-OF 1 HUDSON LIGHT AND POWER DEPARTMENT 3.
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.TO THE '
L -l f ,! DEPARTMENT OF PUBLIC UTILITIES' u a\ /' , l OF hiASSACliUSETTS n, , i 1
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t *'s / , _ j l i For the Year Ended December 31, i x 1989 b b
..s. ., . , ae- ,- ..-...s
R e PNPROM M '- inW?nen/fhMb /thl' ,
.s-su-e g.f._ a 1 atPaa/de%,p baums
.TO THE MAYORS, SELECTMEN, MUNICIPAL LIGHT BOARDS AND MANAGERS OF HUNICIPAL LIGHTING PLANTS IN THE SEVERAL CITIES AND TOh'NS
. IN THIS ColetONWEALTH OPERATING GAS- OR ELECTRIC LIGHT PLANTS: i
- . e This' form of: Annual. Return should be filled out and a !
- signed. original and a duplicate copy (which may be a photocopy).
filed with the-Department.of Public Utilities 100 Cambridge Street;, Boston, Mass.,02202 by March 31st of the; year following the calendar year of the report in i accordance with the statutes of the Commonwealth of Massachusetts and the regulations of the Department made
- in pursuance' thereof. i Where the word *None" truly and comple.tely states the '
Lfact it should be given as the; answer to any_particular inquiry or portion of an inquiry. < If the respondent so desires ~, cents may be omitted in-the balance sheet, income statement and supporting
" s c h e d u el' s'.: All supporting,schedulesLon an even-dollar. basis, however,,shallyagree with the even-dollar amounts in the main schedules. . Averages and extracted-figures, where cent's are
'important, must show cents- for reasons which are apparent.
Special attention.is called to the legislation in regard to-the' Returns which is provided.at.the end of the form. O e a o .
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- Efje Commentucaltfjlof Alaggatfjusetts; . .
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.. ..T.OWN.. . < ' 'O'r HUDSON- -. ,:,
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l LIGHT'ANDLPOWER-DEPARTMENT J 3 (% TO THE . i 4 DEPARTMENT OF PUB.LIC UTIIiITIES ' ' C
" OF MASSACHL'SETTS , ;
11
. I m For' the: Year Ended December 31, -t p .
i 1 1989 4 4
+
4 O!. Name of officer to whom correspondence should l HORST
*~' HUEHMER* '***
''~~~'
be addressed regarding this report. I
?*
Official title. . . .,MAMAGER . - . . Ollice addrw . 4 9. 70 REST,, AVE,NUE
\ E=m AC 19. -
HUDSON, MA 01749 fr
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%: , 1 my ;
i 5n' , 3; lt+ ' TABLE OF CONTENTS!
.t.
T. .
- h. !GeneralInformation ' 3
?
L " Schedule of Estimates ' . 4, Customers in each City or Town . 4-
" Appropriations Since Beginning of Year . '
5 Changes in the Property 51 LBonds- - ' i 6 Town Notes : 1
, -Cost of Plant- 7: 'i Comparative Balance Sheet
. B-9 '
Income Statement - 10-11
- Earned Surplus 13.
; 4 Cash Balances '12 - ,
Y", . 14
- Materials and Supplies '
Depreciation Fund Account - 14: t Utility Plant-Electric - 14
. 15-171
- Production Fuel and Oil Stocks - 18 l Miscellaneous Nonoperating Income" .
Other Income Deductions :21 9 21' ' 4 Miscellaneous Credits to Surplus , 21
; Miscellaneous Debits to Surplus 21 -
( Appropriations of Surplus: 21: t Mumcipal Revenues ' 22-Purchased Power ~
- 22 .
o Sales for Resale 22'
- Electric Operating Revenues ' '
^:
s - Sales of Electricity to Ultimate Consun.ers ' 37 38
- Electric Operation and Maintenance Expenses . 39-42;
- Taxes Charged During Year -
- Other Utility Operating Income ' 49: "
.'i 50
- Income from Merchandising, Jobbing and Contract Work 51: 1 ~- 1 b Electric Energy Account-. . '
57..
' LMonthly Peaks and Output ~
, Ceneratmg Station Statistics . 57 -
W Steam Generating Stations- '58-59: F . ' ' Hydroelectric Generating Stations: 60-61. , h: Combustion Engine and Other Generating Stations i62-63 J
, ' Generating Statistics (Small Stations) '64-65 i 66 Transmission Line Statistics 67 ' '
o i Substations : K 68 M Overhead Distribution Lines Operated .. 69-1 Electric Distribution Services. Meters and Line Transformers
* .69 ;
- Conduit. Underground Cable and Submarine Cable
/ Street Lamps 70 71-
. Rate Schedule Information 79
' Signature Page :
81- 'i q i FOR' GAS PLANTS ONLY: Page Page Utility Plant-Gas . 19-20 Gas Generating Plant .y ; Gas Operating Revenues 74 43 Boilers C h + JSales of Gas to Ultimate Consumers - Gas Operation & Maint. Expenses
. 44 Scrubbers, Condensers and Exhausters 75 75 45-47 Purifiers 76
. Purchased Gas 48 Holders
-d:! 76
' Sales for Resale Sales of Residuals 48 Transmission and Distribution Mains 77 R, 48 Gas Distribution Services, House Governors
, Record of Sendout for the Year in MCP 72-73 and Meters 78 8
i e
. PAGES INTENTIONALLY OMITTED: 23 to 36 and 53 to 56 I.
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1 CENERA1, INFORM ATION. fY 1 l
^
01749 t Hudson, MA l
- 1. , Name of town (or city) making this report. 1 i -.
- 2. - If the town (or city) has acquired a plant. l
- land of plant, whether gas or electrie. . Electric ]
Owner from whoro purchased,1f p. acquired. Hudson Electric. Company 7/11/1891 P
!fyDate of votes to acquim a ple'ot % hecordsnee.with the provisions of chapter-; 1H No. of the Gener Record of votes: flest vote: Yes. 30 ; No, 7: Second vote: Yes. 69 11-
~
Date when town (or city) began'to sell gas and electricity. - Januarye15, 1897
-E
;#:3.O E%'e Nam and address of manager of municipallighting: Horst Huehmer j 23 Plant Avenue ,
R-p Hudson, MA 01749
- 4. Name and address of mayor or selectmen:
William Jackson, 7 Wood St. Hudson, Ma Joseph J. Durant, 22 Harriman Rd. Hudson,.Ma '* ; Carmino M.;Longhi, 6 Forest Ave. Hudson, Ma' m . Rosemary Marini,-:42 Church St. Hudson, Ma l Richard G. Beauregard, 40 Green St. Hudson, Ma
- 5. .Name and addrus of town (or city) treasume: David'O'Neil- 's 1
49 Temi Road I- Hudson, MA 01749 L L
- 6. Navne and address of town (or city) clerk: Ralph Warner
- e. ..
L-3 Lincoln Street Hudson, MA 01749 1 1 6>
- 7. Names and addresses of members of municipallight board:
,, Roland Plante,136 Murphy St. Hudson, .Ma
, Peter Keane,.15 John Robinson Rd.- Hudson, Ma Weedon Parris, 9 Chanplain Dr. Hudson, Ma
- s. Total valuation of estates in town (or city) according to last state valuation s. 955,802,000 i
-:y' W. Tax raen for all purposes during the year:
5 9.59 Res ;
,.;' 16.65 ccrn l ?
l m
- 10. Amount of manager's salary:
*78,380.50 g +
'a} s 1,000.00
- 11. Amount of manager's bond:
4* M
.tg s 600 00
- 12. Amount of salary paid to members of municipallight board (each):
+
ii
,f.- \ $
. . _ . , _ m -
- g. .
, :-dl . ', ,
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;y l W een',e m t'..
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' ! vees cua 6*d=6er s s. -ne 89. ' }%
FURNIS11' SCHEDULE OF ESTIMATES REQUIRED BY. CENERAL LAWS, CHAPTER 164. SECTION 87 ;IFOR CAS AND ELBCTRICi LICllT PLANTS FOR THE FISCAL YEAR, ENDING DECEMBER SI, NEXT. INeousi raos ra8 VATS 00NsUNEks 1- . t , From sales of gae . T > 2 ' From sales of electricity gy g.. i - g. p: TOTAL [- 'EsO @ ' 4
- g EzrrNesis s c j 6 . For operation, maintenance and repaire "
7 For interest on bonde, notes or setip - 31,463,500. 00: -. j s' : For depreciation fund ( 3% 00- 4 I per cent. en 8 14,026,600.43 es per page 3) - 420,798 9- For sinking fund requirements . 04 'j
.- 10 ' For note peyments 14,500- 00 -
11 . For bond payments ' 00 -l
.12. . For loss in preceding year 00t l
.13 - go,. ;
TOTAL LM,M @ j 14 M 16 CoeT
""g 16 Of gas to be need for muntelpal buildings '
4 3 17 : Of gas to be used for street lights . gg 18 Of electrielty to be need for municipal buildings . 00 19 .Of electricity to he need for street lights M,0001- 00 )- 4' , ;20
-., Total of the above items to be included in the taa,1ery .
. 3q1519 m'
. gg ,
s gy y gg- [ ' 22 - New construction to be included in the, tax levy 23 , i Total amounts to be included in the tax levy . 00 TOTE $1R 00 . 4
. CUSTOMERS -. ~
1 4 g Names of the eitles or towns in which the plant supplies .(
~
Narnes of,the elties or towns la which the plant supplies GAS.with the number of customerat meters in each ELECTRIC 1TY, with the number of customers' meters in eachi -{ ' Carv ee Tows ' Non.h , of Casesmers' Meters. Des.. St. 'C m en Town. ' Nember of Caeses. ore' 38 stare. Des. al. ; Str:w ' 2149-m "
' hlirt, Baltrn, B3&xxo, W
lhtverd, Mepard, W1h,rn 106 i y
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l'0WN OF HUDSON
. Aaave a reeert et....... ..................... .......L..I.G..H..T.. A..N..D....P..O..W..E..R...D. .NANNEN'e. ............ veer 'e
- ) O )1
- + , APPROPRIATIONS SINCE BEGINNING OF YEAR ')
( -tinclude sino all items charged direct to tax levy, even whm no appropriation is made or required.) . ,
'n' , \
< .. i ron cowsTnuettoN OR PL'ReHAst OF PfANT:
'At- meeting 19 . to be pnid from 't ;$,
- 'At meeting 19 . to be paid from t '
totat. . s ..t1ONE.: _.
. ron Tuc est: MATED COST Or THC C4s OR ELECTRIC!?Y 70 at UstD BY THE CITY OR TOWN FORT 1.Streetlights............................................................................ 122,250.00
- ::. Municipal buildings. . Amo.un t.s. .a.re.. included..i.n..overal.1..approp r.i-
- 1. -
~~ations for. each department: Tor 4t, . : 122,250.00 i
*0ste of e eek and we.rther egelse er eAL f Hm lasset heads, masse er las levy.
CHANCES IN THE PROPERTY
'1
- 1. Degribe brieft.v all-the important physical changestin the property.during.the.last Ascal period . -
- including additions, alterations or improvements to the works or physical property retired.
In electric property: l l
't !(
NONE i b I k 1 7 i
.f .'
In gas property: W ! l' t l' NOT APPLICABLE
- t. ,
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nonns V ^ f(Issued on Account of Gas er Electric IJahting.)
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- wn.a aven.,#1.e. . o.e..ts .- o,issa so .t - ,,,,
~ ~ ** Ead *" ** ' ~
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,. , , m ,,, .. gj-Apr. 7, 1913 Spec.Junel,1913- S .19,000.00 :
la Har.-4, 1918 Reg.Apr. 1, 1918- '50,000.00 l
-:25,000.00--
June 14,'1920 Spec.Peb.~l'1921 -- j Mar.'5,.1928~ Reg.Nov. 1,1939
~
-40,000.00: _
i. bv.-29, 1954 Spec. Mar. 1 F1955 250,000.00 jS 4ar. 7, 1955 Reg.May 1, !1955
- 100,000.00 j :e
1ar. 7, 1955 Reg. Nov. - 1, ,1955 l150,000 00; iS June-8, 1959 Spec.Aug. 1, 1959 300,000.00-fov. 7, 1961 Spec. July 15,1962 450,000.00-l5L i 85:
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- se, 1y;
- !$l
- .>z i:. :*'
} 00 '
- j
- IT gs
" " Fl',374,000.00' "" o
." i The bonds and notes outstanding at end of year should agree with the Balance Sheet. . When beads and actes are repold report the erst three eohanns only, y g
- Dan. .t isme a t.sh ,i.e.i ,.e i.L tums t s e s .t6.ed. d e e.% sh e.:n. be s. abet g?
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TOMN NOTES I l' (Issued on Acceent of Ges or Dectric Lightinea e=*e
- P.ca.a.e .a**.*
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Ig a. e,.es. e .e , wn a.e w e_ : a.,n . - om. .e . a we. e.,.w. w wn e.,.w. :
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Dec.18,1896. Spec Jan. 1, 1897 $ 18,000.00 i. June 20,1897. Spec Jan. 1, 1898 17,000.00 . June 10,1898. Spec July 1, 1898 5,000.00 i Mov.5,1903. Spec. Nov. 2, 1903 13,000.00 i Mar.7,1904. Reg. Apr.2,1912. Spec. Jan.'1, 1905 May 1, 1912 5,000.00 2,000.00 Aug.4,1941 Spec. Oct. 15, 1941 100,000.00 ip ia Sept.14,1942 Spe< Cet. 15, 1942 .100,000.00 *$- Feb. 8, 1943 Spec Feb. 15, 1943 50,000.00 Mar.6,1950 Reg. Sept. 15,-1950- 241,000.00 IU
!F in~
ye
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* *' S 551,000.00 * **
,=
The bonde end meteo _ _ .- - N . et end of year should scree with the Belenee Sheet. .When bonde end seems see repeld report the Arvt three celesnee only. ;;;
.n .t s e . ten i e er.o W. Ithierte th .to e, 4 aa.aiem e n. s ie.
._ . -- - . m fm
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- TOTAL COST OF FLANT -ELECTRIC
~
?
.** 1. !!cport below tl.e cost of stEity ptar.t in errvice - ceding year. **,ud. itemnheirlJ NE:cluded I*r cotour.n eNect a such e.netrats. - .
secarding to prescribed ecce,unts. (c) or (d) es appropriate. -
- 4. Iteclass68cstions or teensfere ekt 8e we.T,e F dI eat . . . 2. De not include as adjustenents,' corrections of 3. Credit adjustenents of plant secounts should accounts shoulJ be shose in entwine (4 % edditiene and retirements for (Le current or the pre. - be enched I.a parentheses to indicate the negative g
sesence i 3, Seganning Segomee Une Accoont ? efYeef Avestiene poteronoones Adgusemones freessere gaset h (e) 3 see. (b) (c). (ep (.3 (g gg g I 1. INTANGIBLE PLANT $ $ $ $ 3 $ i 2 :o:
;w 3 :
4
- '.z
- es c-5 2. FRODUCTION PLANT 8 A. Steem Production
* 'E 7 319 La4 and Land Rights. . . . .. . . . . .
![-
3 313 Structures and Isoprovemente..... I* 9 312 Deller Fleet E;f, .......... I le 313 Engines and Engine Driven Generatore . . . . . . . . . . . . . . . . . . . . I% 8" 31 314 Twebecenerater Unite. . . . . . . . . . . . ! 12 315 Accessory Elecede Earvipment .... I 13 318 Miscellaneous Power Fleet
!. N .
I4 E, *, ..t....................
~ lO 15 Total Steem Productlen Flent. .
i is B. Nucleer Freductlem Flent 17 320 Land and Imed Rights........... 944.00 944.00 i IS 321 Structores and Isoprovemente..... 19 j 322 Reacter Plent E, ~. ..;........ : to 323 Torbes reter u lie. . .. . . .. . . .. . j 21 su Accesmry Elsetde Eagelpment.....
- 22 325 MisecEaneene Feuer Fleet E; - ', ^
f _ 23 Total Nuclear Freductlen Flent 944.00 None None None None- 944.00 m i* e.
- - - . . _ -. . . - - - -~.:---:-------
e.-
- 9. . . .
- y n > y .. -
*~
- TOTAI. COST OF Ft.AMT -El.ECTRIC (C e" __.7,
- I ,.
e 4 e.e e e,.e U Aeeeent evw scenes.e nose, mas-ee aetsees. ewe tes es e,e e.e se ,e,, ' w m een M M M se ,1 I C. Nyereste Fredeetion Fleet 8 8 8 $ g - 3 l
- 3 SN tand and Imed Rielite.......... j 3 331 streetween and . .....-.c...... - -
18 4 332 Mese esire, Desne sad Waterwere '-
!E
- s 333 Water Wheele,Turtlese end / -
Io
~
l Genero6ese. . . . . . . . . . . . . . . . . . . . . !2 e 3x Amese , sneeede rgelpment.... IE t:r
- 7 335 Beiseegenesse Feuer Fleet
- *s Egelpenent. . . . . . . . . . . . . . . . . . . . -o DC e ass neede, nearende end a,ideve....
- 9 Tetel nyereune F,edeensen Fleet tje to D. Odwr Fredecuen Fleet 5,500.00 None None N
! na see land and land Riene........... 332,767.70 None. None, None None None 5,500.00 g It set Streeteres and Isopreeeeneste.... None 322,,767.70 .t,
- I3 att Feet Heldeve, Fredetere end hr *
- Aeneseries. . . . . . . . . . . . . . . . . . . . 124,588.30 None None None None 124.'sR8.30 "
St3 Fehne Mesere................. 2,456,445.92 91,422.36 12,086.00 None None 2,5Yr,792.28 l 14 Is 144 Generstwo.................... 287,549.94 None None h l None None ~28.7j549 94, i, l to ses Amenery meetde Equipnient.... 832,557.17 None None None None 832;557'.17 ' g II 888 88b'""""'"' P' FI'"" 33,312.41 578.39 . Egelpment. . . . . . . . . . . . . . . . . . . . None None None 33,890.80 E at i Totel other Feedsetten Fleet.. 4.072.721.44 92 nnn.7s 12.086.00 h h 4,152, 6 7 1 4.071.665.44 92.00n.7% 12.086.00 h E j 19 Tetel Fredoctlen Float......... h A;153,580A9' f i 29 3. TRANSatISSION PLANT -- i ! tt 3se tend and land Richen.......... 53,804.14 None None None None 53',804.118 i j 22 ast Overtes land and alshes of Wer None None None None None None.
~
23 352 streetweee and , _..._.r_.... 168,166.08 None None None None 168,166.08 , ! 24 asa statsen Egelpinent..........l.. 300,699.04 745.17 None Nctie None 301,444.21 8 ! 25 384 Teens and Fletures............ None None None None None None g re ass Fates and Fisteree.............. 796,839.02 None None None None 796,839.02 8 i 27 398 Overhead conductees and Destees 227,329.01 None None None None 227,329.01 F 258.07 None I 28 357L6...... Condelt. . . . . . . . . . . None None None 258.07 l I 1 29 358 U..?...._ -. Condwetore end . l Devleen . . . . . . . . . . . . . . . . . . . . . . . None None None None None None !! Se 359 beds and Trees. . . . . . . .. . . . . . . h " " h h h i; st TotetT .. ./.Ja.rient...... 1,547,095.36 745.17 None Ncce None 1,547,840.53 !3A M -
'TtFTAL CO'rT OF Pt.Aprr gr - -_ n 8
( l e.e.~re - tis.o Atc no
~,v-e em e
A4evenne spege ne.go -.,_.- ; ?.omge ,g f.e et To.r - n M no tet ut m n ese . 3 $ $ $ $ g :1 t 4. DISTRIBUTION PLANT 2 360 tand and land Richts......... . None None None None !bne None ! 3 sst streeteres and in.,,...- ..:s.... 3,586.53 lbne None ?bne Mone 3,586.53 i 4 382 steelen Equipaent............. 398,865.82 None None Ibne Ncne ' 398,865.82 !* 3 ses searmee settery E, . . ^...... None None None None None None - e see Felse, Teams and Fletwes...... 674,345.02 15,250.46 None ~ ibne None 689,595.48 i!* 1r ses overteed Ceedsetere sad Deesese 1,910,362.69 66,615.51 None None None 1,976,978.20- i$ 8 ses Underersead Condelt............ 184,855.10 (115.71) None None None 184,739.39 i 't e sof C. . _- f Coadmetere&Deveees 468,783.46 35,122.68 None None None 503,906.14 ~ !5 i se ses IJne Tressferimere. . . . . . . . . . . . . .
.1,626,790.57 107,062.22 150.35 None None 1,733,;7D2.44 ,g 11 389 8erelees. . . . .. .. . . . .. . . .... . . . . 464,996.90 4,512.86 None None None ,~469,509'.76 iM 32 37e teeters. . . . . . . . . . . . . . . . . . . . . . . .
561,469.25 42,183.09 4,374.44 None None 599(27.7.90 ie is 37: East.m.as.== en Cast *e Prendere. . None None None None None None i5 se 372 Inosed Prop. en Cast's Prendsee.. None None None None None None !:
"*" "' 9 " ----
" -- h " 7M i ,,;
373 seseetIJebelne end slenel Systeme 3e . 6.615.71n.67 777.RA1.17 _4,524.79 nnne Nnna 6.888,549.20 jg le Tetst N Fbsit..~ . . , 37 8. OENEllAL PLANT : .t None None None None None Nore ig as ses land and Imed Ittshte.......... 461,279.20
^
458,679.20 2,600.00 None Nore None i 6 29 sse streetwee end * , ... .... se att asee Fuengtsee end Equipment.. 423,934.25 2,888.57 None None None 426,822.82 i 497,285.55 10,469 00 5,921.65 None None 501,832.90 ?. 21 392 7.: .- :" Egelpment. . . . . . , 22 353 sewee Egelyneet. . . . . . . . . . . .. . 12,045.77 None None None None 12,045.77 j2 13,466.39 733.00 None None None 14,199.39 i 23 see Tessa,shep osed carese Egdene,it ass Imberessey Egespment.......... '20,609.03 ,None None None None 20,609 03 * [p 2e 3,494.80 gg gge yo ,0perated Egidpnent...... 1,849.80 1,645.00 None None None !0 44,523.19 None None None None 44,523.19 i ss ser ew.---a.-ales Egelpment...... 10,651.73 1,040.00 None None None 11 691 73 3 5 .82 i: 2r ses setsselisessus aguepoent........ 799.40 None 419 58 None None 88 * ***"' 19.375.57 6,341 23 None None 13496,,,878.65 g 1.483.844.31 29 Teesi ceserel PIsot._"_ 13.719.815.78 _.." None None J 4 ',086'p848.5F 390.084.81 22.952.02
-Teest Cost d E3eetree PIsot.................J 4,086.g4g.3 se Teesl Essenste Plent in 9evlee.
y 33 fase Osd d land, Imad Etigten Ellstes d 1For. .. .. . t'U,zeu.1g g, Tseul Cast mysa 36teli Deposetselee le toes 4. . . .. .. . . J , 9 , W6,600.~43 _ . g
-v e,=es 4. e. e .e 4,.o ,a as o. me==4 e-. m. e w e om e. 1rn. .n e e. :
f.a r. s. .-. r s e d e. , o=emr.i.= a D. 4 e ee sa sa w e. , e. Y= e.*-****=-.*-e:. e e. i.si e
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- i. i. 89 !
i COMPARATIVE BALANCs. SHEET Ameses and Osbar Debite *! I i totenee j
.p 46ae Vetle et Aeeenent U "*'"8 Veer
O*b"** IR8'esee lg, nee. ins of Vest et (Deeeeeee)
(e) 1
'i ..
(D) . (e) gg) ,j o i UTILITY Pl. ANT I I ' 2 101 Utility Plant - Electrie (P.17). . . . . . . . 301 Utility Plant - Gas (P. 20). . . . . . . . . . . 6,522,590.72 None 6,733,247.23 None 210,656.51 None ( ! I 4 8 Total Utility Plant . . . . . .. ...... g.q)y,qQO.72 6 6.733.247.23 210.656.51 1
$ )
9 r 10 Il FUND ACCOUNTS
!! 126 Sinking runds . . . . . . . . , . . . . . . . . . . . . . . . . None None None i 1'
la its Depreciation rund (P.14 ) . . . . . . . . . . . . . . . . 2,215,215.05 2,609,976.29 394,761.24 j is 1'J other special runds . . . . . . . . . . . . . . . . . . . . . 1,859,552.75 814,044.20 (1,045,508.55 . j u ( 15 Total run ds . . . . . . . . . . . . . . . . . . . . . . *sVI**'0/*ou J s *' r V ' V
- U ( 650,747.31 i 16 CURRENT AND ACCRUED ASSETS
. 17 1 s t Cash (P.14 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,176,371.35 31,917.11 (1,144,454.24 (1 is ist special Deposiu . . . . . . . . . . . . . . . . . . . . . . . . 227,507.97 246,320.98 I
c is iss working runds. .
'18,813.01 '
............ ....... 500.00 500.00 None 20 17d Div. & Div. Receivable. . . . . . . .
17,546.00 48,840.93 31,294.93 m 21 142 Customer Accoumu Receivable. . . . . . . . . . . . 2,575,418.84 3,023,776.31 448,357.47 22 143 Other Accounta Remlvable . . . . . . . . . . . . . . . 55,561.81 38,332.81 (17,229.00: 23 146 Receivables from Municipality. . . . . . . . . . . . 2,286.36 2,286.36 None I 24 161 Meterials and supplies'(P.14). . . . . . . . . . . 721,702.09 610,193.06 (111,509.03: 1_ to 173 Accrued Utility Revenues None 160,879.68 160,879.68 1 '26 185 Prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . 598,627 50 451,092.02 47 (147,535.48: 174 Miscellarieous Current Aamets. . . . . . . . . . . . . 321.57 None (321.57) i f6 Toul Cur.ent and Aecrued Assets.. . . . . 5,375,843.49 4,614,139.26 (761,704.23:
- 29 DEFERRED DEBITS 30 181 Unamortised Debt Discount. . . . . . . . . . . . . . None None None
't! 182 Extraordinary Property Lommes. . . . . . . . . . . . 6,947.86 None ( 6,947.86) r 266,150.15 2
12 185 other Deternd Deblis. . . . .......... . 63,960.66- (202,189.49) 13 Total Deferred Debits. . . . . . . . . . . 273,098.01 63,960.66 (209,137.3f) En ,
.tk Total Asseu and Other Debits , . . . .. . . 16,246.300.02 14,835,367.64 ( 1,410,932.383 s
4 ts 4 -) E O Y. ' 11 t *
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[' 7 Q. ' ' c.: nue i repeet et. ... . . . f.@ N . SI ..I.IN.U.9.h. .h. !.9.I.I.I..A.Y.k. .I.9.$.k.k..f.f.(.k.k.Y.f.Y.I... .. .. ... . .. . . . . . . Yeo r onded Dec 0 ,
, COMPARAT!YE BA1.ANCE SHEET Liabillelen and Other Credite l' r
( betence
) 08 " "** '"*'"
(/ Line Tit 6e at Account ""'"8 Year End of Year - et (Decreece) No. (e) (a) (c) (e) 1 APPROPRIATIONS ~ j 2 201 Appropriations for Construction. . . . . . None None Non_e_ 8 . SURPLUS 4 206 sinion Pund Beeerva. .. . ...-.. ... ... None None None 6 2061mns bpayment. . . .....,.. ... . 1,925,000.00 1,925,000.00 None 6 207 Appropriations for Construction Repaymente 20,093.39 20,093.39 None 7 20s Unspproprinted Earned surplus (P.12). .. . 10,700,925.56 10,346,856.23 (354.069.33: 8 Tota 18vrplus . . . . . . . . . . . . . . . . . . . . 12,646,018.95 12,291,949 62 (354.009.33: 9 LONO TERM DEBT 10 221 Bonde (P. 6) . . . . ...... . .... None None None 11 231 Notes Payable (P. 7). . . . . . . . . . . . . . . . . . None None' None 12 Total Bonde and Notes. . . . . . . , . . . . . . None None None p 13 CURRENT AND ACCRUED LIABILITIES 14 232 Accounta Payable . . . . . . . . . . . . . . . . . . . . 968,652.03 1,146,515.16- 177,863.13 16 234 Payables to M unleipality. . . . . . . . . . . . . . . . None None None 16 236 Customere* Deposita . . . . . . . . . . . . . . . . . . . . . 227,507.97' 246,320.98 18,813.01 17 286 Tames Aeerved . . . . . . . . . . . . . < . . . . . . . . . . . . None None. None 18 237 Interest Aeerved ... . . . . . . . . . . s . . . . . . . . . . . None None None 19 242 Miamilaneous Current and Acerved Llabilities 19,482.79 7,142.56 (12.340.23) 20 Total Current and Aeerved Ilabilities.' .. 1,215,642.79 1.399,978.70 184 . 33 5. 9L, 21 ~ DEPERRED. CREDITS
~
~ 22 261 Unamortised Prunium on Debt. . . . . . . . . . . None None None
( _ 23 262 Customer Advanees for Construction...... 52,400.00 34,600.00 .(17,800.00) 24 253 Other Deferred credita. . . . . . . . . . . . . . . . . . . 1,252,804.31 None (1.252.804.31) 26 Total Deferred Credite. . . . . . . . . . . . . . . 1,305,204.31 34.600.00 (1.270.604.31) 26 RE8ERVES 27 260 Reserves for Uneollectible Accounts........ None None None 28 261 Property Insurance meerve . . . . . . . . . . . . . . None None None 29 262 Injuries and Damages Reserves. . . . . . . . . . . 700,000.00 700,000.00 None 30 263 Penelons and Benoots Reserves . . . . . . . . . . . . None None .None 31 266 Miesellaneous Operating Reserves. . . . . . . . . None None None 32 Total Reserves . . . . . . . . . . . . . . . . . . . . . . . 700,000.00 700.000.00 None 33 CONTRIBUTIONS IN AfD OP CONSTRUCTION -1 34 271 Contributione in Aid of Construction... . . . . . 379,433.97 , 408.839.32 29.405.35 36 Total lasbilities and Other Credita. . . . . 16,246,300.02 14,835,367.64 (1.410.932.38) State beleur if any earnings of the munleipalIlghting plant have been used for any purpose other than discharging indebted. < ness of the plant, the purpose for which used and the amount thereof, l i A U M { i
,, 4
.w *;
18 !; Inovel report cf......'.......l.'0..w..!! 0F HUDSON LIGHT AND PCWER DEPARTMEN1 ;
') . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .. . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . Yea r o nees December 31. 3 9 e
STATEMENT OF INCOME FOR THE YEAR (
' )
Total i increase or i tine Account @eeresse) kom No. Current Veer Procesing voer (e) _ _= tb) (c) 1 1 . OPERATING INCOME 2 400 Operating Revenues (P. 37 and 43) . ... ... . . . .... 29,362,617.67 3,699,456.78 8 Operating Espenses:
# 4 401 Operation Espense (P. 42 and 47). .................... 28,855,496.56 4,410,025.13
-6 402 Maintenance Espense (P. 42 and 47) . . . . . . . . . . . . . . . . .. . 610,595.67 119,333.06 IC 403 Depreciation Es pense . . . . . . . . . . '. . . . . . . . . . . . . . . . . . . 409,787.03-7 558.56 407 Amortisation of Property Losses . . . . . . . . . . . . . . . . . . . . . . . None None 8 j 9
408 Ta s es ( P.' 4 9 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,670.41) (14,768.60)
- 10 Total Operating Espenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29.870.208.85 _,,,.523.148.15 4
- ', 11 Operating I ncome . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
t c;n7,591.18 ) 22 414 Other Ut!!!ty Operating income (P. 50). . . . . . . . .'. . . . . . . . . . . m. m 1 823.691.37) wm 13 14 Total Operating 1oeome . . . . . . . . . . . . . . . . . . . . . . . . . . . . r 15 - OTHER INCOME __ (507.591.181 ( 823.691.37) r 16 ' 418 income from Merchandising. Jobbing and Contract Work (P. 61) None None ; i 17 419 I n t e res t I ncome . . . . . . . . . . . ". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 358,715.88 53,060.68 l 16 421 M iscellaneous Nonoperating !aeome . . . . . . . . . . . . . . . . . . . . . . . None None '1 19 4 Total Olber Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1c;R . 71 M . 88 t 20 Total 1ncome . . . . . . . . . . . . . . . . . . . . ................ 53.060.68 (148.875.30) (770.630.69.},~ MISCELLANEOUS INCOME DEDUCTIONS 22 None 425 Miscellaneous Amortisation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 'None 23 None 426 Other Income Deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None ; 24 Total Income Deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . wnn, wnn, 23 Income Before !nterest Charges . . . . . . . . . . . . . . ....... ... _ 26 (14R.875.30) (770.630.69) INTEREST CHARGES 27 None 4 27 Interest on Bonds and Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None 28 428 Amortlaatton of Debt Discount and Espense. . . . None None l 29 None 429 Amortiestion of Premium on Debt - Credit. . . . . . . . . . . . . . . None 30 4 31 Ot her interest Espense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , 12,180.70 ( 2,320.54) 31 432 Interest Charged to Construction - Credit. . . . . . . . . . . . . . . . . None None 32 Total Interest Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
' 12,180.70 ( 2,320.54) ~
33 NET INCOME. . . .. . ..... ....... ..... (161,056.00) ( 768,310.15T~ EARNED SURPLUS une Debits N s. (a) Credits (t.) (c) 34 208 Unsppropriated Earned Surplus (at beginning of period). . . . . 35 None 10,700,925.56 36 37- 433 Balance Transferred from Income. . . . . . . . . . . . . . . . . . . . . . . . . 33 161,056.00 None h 434 Miscellaneous Credits to Surplus (P. 21). . . . . . . . . . . . . . . . . 3D 4 35 Miscellaneous Debits to Surplus (P. 21) . . . . . . . . . . . . . . . . . . . . None 44,692.56 40 37,705.89 None 4 36 Appropriations of Surplus (P. 21). . . . . . . . . . . . . . . . . . . . . . . . 41 None 200 ,000.00 None > 4 37 Surplus Applied to Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . None 42 20$ Unappropriated Earned Surplus (at end of period).. . .. .. . .. 10,346,856.23 None 43 44 T'TA" 10,745,618.12 10,745,618.12
& 4 w ,e, - . . _ . , -
I eeport (f....... . . . . . . . . . . . . . .k. .' ..k.k.$N..f.QER.. 21R Al'.Tring.................. veer eneed peeemboe aI Id.9.. i o CASH SA1.ANCES AT END OF YEAR (Account 181) me.
,t-e (e) am.-
(*) e
-1 Oper a t ion Fu n d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,917.11-2 I nterest Fu nd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..... . . . . .. . .. . .00 8 Bo n d Fu n d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. .. ..... .00 4 Construction Fun d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............ . . .. .. .00 6 Misec11aneous Cash 27,666.66 s Insurance Escrow Reserve 784,041.34-1 Insurance Escrow-Project #6 1,408.37
- Insurance Escrow-Pilgrim 927.83 9
10 11 12 votat 845,961.31 MATERIA 1.5 AND SUPPLIES (Accounts 161169163) Summary Per Balance Shut
,, Amount End of Veer Line Electric Gas me. to) (b) (c) 18 Fuel ( Account 161) (See Sebodule. Page 26) . . . . . . . . . . . . . . . . . . . . . . . . . . 319,221.37 14 Fuel Stock Espensee ( Account 162) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16 Realduals ( Account 168 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 16 Plant M aterials and Opersting Supplien ( Aecount 154). . . . . . . . . . . . . . 290,971.69 N/A 17 M erchandite ( A reount 166) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Other M sterials and supplies ( Account 166) . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Nuclear Fuel Assemblies and Components -la Reactor (Account 167). . . 20 Nuclear Fuel Assemblies and Componenta - Stock Account (Account 168) 21 Nuclear Byproduct Materials ( Account 169). . . . . . . . . . . . . . . . . . . . . . . . . 22 Stores Expense ( Account 168). . . . . . . . . . . . . . . . . ....,........... ..
~
23 Total Per Balance Sheet 8. .. . ... . . .. .. c1n 107 nc I DEPRECIATION FUND ACCOUNT (Account IM) i Line Amount No. (e) (b) 24 DEBITS 26 Balance of account at beslanleg of year. . . . . . . . . . . . . . . . . . . ............ .......... .. 2,215,215.05 26 Income during year fresa belanee on depoelt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197,869.61 27 income 409,787.03 to mount transferred f"l5cmeo elmbursement sal. . . . .fnt. & M Damaged
- a. . . . . . . .Property,
. . . . . . . . etc. . . . . . . . . . . . .422,550.39
............... ~;
29 TOTAL 1_?d4.d??_nR ! 80 CREDITS 81 Amount expended for construction purposes (Sec. 67. C.164 of G.L.). . . . . . . . . . . . . . . . . . . . . . . 635,445.79 g 32 Amounts expended for renewala, via.t- i 83 84 87 e 88 89 Balance on hand at end of year. . . . . . . . . . . . . . . . . . . .. ...... . .. . ... . ... 28609.976.29 40 t vovat 3,245.422.08 M i
_. ,- 9; .
~
~
, z.
^T UTILITY MANT-RECTmc !-
4
- 1. Report below theitemsof utility plant in service cedine yeer. Such itenn should be ineladed in column of seek smounts. i according to ; . ..LJ secounta. (cf. 4. RecteweAcetione er trenniers within utility plant .
- 2. De not inschsde on adjustmente. ' e, mL, a of ' 3. Credit edjoutments nf plant acceents should be - eccounts should be shown in colven (f). f additione and retirements for the current or the pre- enclosed in perentlicees in indicate the negative efFeet .
1 . s.o c. WW Adh.e.e.e. 94 e. . !- ti Ace e .# r , Addie r ,----- m crewet.m 7, # d .e v , N (.) (b) (c) (dl (.) (f) (g) M i
- O
- E
! 1 1. INTANGIBLE PLANT S E S S S S io
'1 l 2 3 -:e
.c 4 es
.ta 5
6
- 2. PRODUCTION PLANT A. Steem Production j
W 7 310 Isnd end Land Rights .. . o 0 311 Structures end Improvements . . 1 9 , 9 312 Boiler Plant E4r..a . . l 13 383 Engii.e and Engine Dmen 2 "
- er Generators . . .. .
11 314 To.Le u. L. Units . . j 12 315 Accessory Electric E m . ..: ... :o 13 316 Miecellaneous Power Plant c. ' 14 Equipment y i 15 Total Steem Production Ple it 16 B. Nucleer Production Plant . . .$. W 17 320 Isad and Land Rights 944.00 .00 .00 .00 . 00 944.00 g
- 13 321 Structures and Improvenients .. *
- la 322 Reactor Plent Equipment . ..
l 20 323 Tu.L -._L. Units . . 324 Acceamary Electric E. ~ ..: ... ' 21 22 325 Mimeveleneous Pee er Plent {
- Egelpment .. . . -
- 23 Total Nucleer Production Plent 944.00 .00 .00 .00 . 00 944.00 g I
I
.=
M l- b
-e et 1__ m_ = _ _ . __ _ _ _ _ _ - . _ _ _ _ _ _ _ _' = -<
+
* %%+ ---e+'N_-
- _ - - _ ' -.m -r" --~w-, --s ee ' - '_*v v'A~" .--%~ ve r"-- '-*-( n~w -
w e-ve e -..w -*rc
. ."ew- ~-ew-mve ,=---re
g*- ' UTRffY PLANT-RECT 49C (Cenelnuedt 8 3_
.j beg.aa.a, Aemummaman N g
tiae Ane==e *8 Y*** A dd**as Omswesamsame Oessur Queer f **** 8*** *ad of Your - e.
,e t f.) tbl tel idt tel t 'l fel I C. Ilvefreulic Pensfestfian Plant S 5 F T E 5 2 330 Land and Land Riehts ,
3 33I Structures enet I.- .; . . ..a..ts 4 332 Reservoirs. Deens and Waterweys 5 333 Water Wheele. Turbines & M-C .a._L.- $ . 6 334 Acceemory Electric Egeissnent 7 335 MisceIIencoes Power Plent .
* [
Equipenent 8 336 Roede. Railreeds and Brielses 8-9 Total Hydroelic Prnstection Plant j~ 10 D. Other Prostection Plant - 11 340 Land and Land Rights 5,500.00 None _None None None 5,500.00 4
- 12 34: structures and Improvements . 10,471.50 None 1,083.03 None None 13 9,388.47 %
342 Feel Holders. Producers and ~ Accessor 10,750.42 None 1,037.65 l None None 9,712.77 ., 343 Prime Mover. 128,999.21 14 91,422.36 35,693.38 None None 184,728.19 15 344 Generators 17,919.69 None 2,626.50 Q 16 345 Accessory Electric Equipment None None 15,293.19 y 36,187.53 None 3,976.72 None None 32,210.81 17 346 Mk"_..u Power Plant -o-8,573.19 7 j 18 Egoipment Total Other Production Plant 218,401.54 92,000.75 578.39 999.37 45,416.65 None None 8,152.21 [- y None None 264.985 Jd_ H ' 19 Total Prnduction Plant i 20 ' 3. TRANSMISSION PLANT 219,345.54 92,000.75 45,416.65 None None 265.929.64 h;
- 21 350 Land and Land Rights 53,804.14 None None j 22 351 Cleering Land and Rights of Way None None 53,804.14 8,614.43 ?kmc 1,044.60 None None 7,569.83 g i 23 3,2 structure, and Impro.cment. 31,510.50 None 3,800.38 None None 27,710.12 3
- 24 3s3 station Equi wnent t
- 36,354.05 745.17 4,020.97 None None 33,078.25 *-
25 354 Tower and rinteres None None None None None None i 26 355 Poles and Fisture. k 98,494.52 None 15,905.17 None None i 27 356 Overhead Cond.ctor, and Device. 82,589.35 y , 2s 65,630.48 None 10,819.87 None None - 54,810.61 1 357 Underscound conduit ' 109.87 None 7.74 None None 102.13 T-
' *" *"d
- ; ,,"" None None None None None None .
! 30 359 Roads and Trs de None None None None None h i K 3: g, Total Tre.. _... _. Plant , 294,517.99 745.17 35,598.73 None h h N "' ' ' t 6 . - _ _ -. _ _. 9 . . __ . _ . - .- G. .-
- .. +; - -
_3 ry. ? *
~
-fd -
~'
T UTitlTY PLANT-ELECTRIC (Continuedt - I
' Solence W Adje.em ,, estenee $-
13ee Aaeset of Yeee Add.eiene Deseeetateen ceE e t*,, des. Teemef,es 'e A e, Year n Pos. fel tbl (el ed) tel in - (gl 2 I 4. DISTRIBtmON PLANT S S B 5 S 1
. S 2 me Iend and Land Rights ... . None None Nom None None None 824.10 :
3 mi structorce and Impeweevesnes .. None 107.60 None None :716.50 . 4 m2 station E. : 130,116.68 None 18,965.97 None None 111,150.71
- 4 5 ma storase Bettery E . ". ... None None None None None None 6 24 Pales. Towere end Fintom 153,432.86 38,152.86 35,230.35. 22,902.40 None 133,452.97 7 504,562.06 88,840.69
^
65,310.88 N 365 Overhead Conductors osed Devic,, 22',225'.18 None 505,866'.69. @ s ses U;".. " Conduit, " 95,140.37 583.72 10,545.65 699.43 None 84,479.01 3s7 t* ".... _ _ . " Conductors eneI Devic,, 269,831.46 o 9 43,865.36 10,406.50 8,742.68 None 294,547.64 10 aos Li.ie Transter en . . . . . 621~,784.99 112,276.52 75',803.72 5,214.30 [ None 653,043.49 & la 1e9 service. 171,787.17 7,389.99 13,949.91 2,877.13 None 162,350.12 E 12 m Me,,,, 268,826~.40 43,140.02 20,844.08 '956 93 None 290,165.41 0' 53 378 Instelletians cet Cust's Premim FW th None None None None t- - 84 372 feemed Prop. na Cast's Premise, Nom Nom None Nom None None y is 373 se,eet Leg. and sognet systems 79,155.36 7,690.04 6,634.66 457.83 79,752.91 None 4. Is Tetel D6 trisistion Plent 2.295.461.45 341.939.20 257.799.32 64.075.88 None 2.315.525.45 87 5. GENERAL PLANT h_ IA 149 Land and Land Richts Nom Nom Nom None None None ; 9 m serveto,ee and imp,, en, ente 104,944.32 2,600.00 14,760.38 20 19: Omec rurniewee and Equipment 214,298.08 2,888.57 23,718.03 None None 92,783.94 %i None None 193,468.62 S 28 192 Trenennetation Equipment 225,641.04 10,469.00 25,918.57 None None 210,191.47 c, 22 193 store, Equipment 4,633.63 None- 461.37 None None 4,172.26- Q. 23 394 Tanen. shop and Carece Egpt. 6,826.55 733.00 1,004.97 None None 6,554.58 ? 24 m Leberstory Ed. .._ ..t 9,996.54 None 1,618.27 None 8,378.27 25 3ss Power Operated Equimt 1,061.16 None 7 1,645.00 335.49 None None 2,370.67 p ' 2s mc u:ima Egeinment 22,241.39- None 2,335~.70 None None. 19,905.69 '* 27 ans Miscelsene e Egoipment 6',283.28 1,040.00 819.55 None None . 6,503.73 2R 399 Other Tenaihle Property 799,.40 None None 419.58 None 379.82 29 Total Genersi Plant S 30 596.725.39 19.375.57 -70.972.33 419.58 Nnne 544.709.05 '1 Tntel Electrie Plent in servic' 3.406.050.37 454.060.69 64.495.46 31 104 Utility Plent teamed to Other, 32 los Property Held for Fetwee Use mne None None 409.787.03 None None None None 3.385.828.57 None f. , 33 07 can tr csson work in Prne,,e, 3,116,540.35 None 193,124.95 None None None None None None f 34 Tota tressi,y Pfent Electric 6,522,590.72 647,185.64 <. 409,787.03 37,753.36 3,347.418.66
}
64.495.46 '37.753.36 1i.733.247.Tl .b < l
. . , , ~. :.: : ,, ,, , .. - - _ _ - _ . . _ , _ _ _ . ~ . - . -
PRODUCflON FUEL' AND' OIL STOOt3 lincluded In Accouse 1513 sew se news , sese e.se - f
.. 2' L Report below the inforvnetion celled for concernine peeduction feel eel est neocks.
{
- 2. Show quantitice in tone of 2.000 lha set, or Mef !. " -. unit of geantity io . . " _"i.
i 3. Each kind of enet or oil should be eBoown seperately. 1
- 4. Show see end electric focle seperately by speevile use.
awes or evet esso cet v.s. time go.e Cod - Oseasesy Cow Osemany Con j$8
,s i., tes . tes Id fI ', tot s-1 On Head Besennens of Yeer . . . . . . S 444,844.86 795,100 444,844.86 0 s . 00 --
2 Receeved During Yeer . [o's
.. .... 565,862.79 -403.656 253.455.60 124.186 117.407.19
- i
'3 'IUTA L . . .. .. ...... 1,010,707.65- 1.198.756 698.300.46 124.186 117.407.19 [ @ --
4 Used During Yeer plate A) .... 688,404.87 660,139 375,997.68- 124,186 -312,407.19 ig l 5 l -M i s a-7 $- s l j: s h j to Sold or Treneferred .. e
! I . ... 3,081.41 5.458 3.081.41 0 .00 ,
12 'ItrTAL DISPOSED OF 691,486.28 665.597 379.079.09 124.186 312.407.19-Q 13 BALANCE END OF YEAR . . 319,221.37 533,159 319,221.37 0 .00 g unsos or evet aseo ost c ees ;, ur T 13a= le== O"#r C** O'*"'#r C** $ tee. Ist #1 til til f*3 M t=s 34 On Head Beginning of Yeer . . . . . . . . . . . s 3 $ 15 Received During Yeer . . . . . . . . . . . 13 'ITFTAL . .. . . .......... . . h 37 Used During Yeer (Note A) . . . . . . . . . . . . . . . . . 8 13 13 * [ t
. E 21 1 22 [
23 2 24 Sold or Trensferred . .... .......... .. .... 25 'fDTAL DISPOSED OF . ... .....: .. . g 26 ' BALANCE END OF YEAR - .. Note A-Indicate specific purpose for which used, e g 14eiler Oil. Mehe Oil. Cenerecer Feel, etc. ., -l L . 9 - - - . . 9 .--- . . e.1 - ---
f0FN ....OF.. HUDD #I
- (.:tnxi repeet of.. .. ... ........ . ... .....O N t. f..G..i.lT...A..N..D...P..O..W..E. .R...D.E..P..A. .f.t".V..h.*".'.'. .. ....... .......Veef ended Dece 31.19 89 MISCELI ANBOUS NONOPERATING 1NCOME (Account 431)
Line 1 hem Amount - No. ' (a) (b) 1
, ,3
'3 4 I' 5
6 * * *' OTHER INCOME DEDUCTIONS (Account 436) 1 Line item Amount i No. (e) (b) 7 8 - 9 i I 10 11 12 ] 13 I 14
# AL MISCELLANEOUS CREDITS TO SURPLUS (Account 4H) I Line item Amount No. (e) (D) 15 Proceeds frcrn the sale of Pilgrim II assets 37,753.36-Is 1983 Refund of the' Wyman Project 6,939.20 17 l 18 h
( g 19 j 20 1 21
]
22 23 44.692.56-
- MISCELLANEOUS DEBITS TO SURPLUS (Account 435)
Line item Amount No. (e) (b) 24 Repayment of part of 1987 Boston Edison settlement 37,705.89 ' 25 i 26 27 28 - 29 30 31 32 m AL 37,705.89 APPROPRIATIONS OF SURPLUS (Account 436) Une item Amount No. (e) (b) ( 38 Transferred to Town Treasury 200,000.00 34 , 35 O :' 38 39 ao T*fAL 200,000.00 M' !
F .
.CI .
f' Anausi report of................I.D.. 9.$..Y.S.S8.9.Y..b.I.9.I.I.I..h.Y.9..f0,?,{,3,,p,[,[,{,$,3,y,y,i..'........ . veer enoes Decembe MUNICIPAL REYRNUES (Assesses est,446); * (K.W.H. sold under the provisions of Chapter tee. Aets of 1927)
. a ., : ene use ""
cubic Feet nevenue neees,ee- u ' 1 482 U EIN t 5 Totals - Electric $chedule 4.o. ...onu. K.W.H. Revenue Received thm -
- to) p)
(c) je )
-6 444 Munidpah (Other than Street Lightint) e '
ALL ELEC'IRIC ' 6,969,300
'T PCEER 676,199.83 $0.097026 8 4,971,625 619,572.16 CCMERCIAL 0.124622
! 8 468,025 72,915.32 YARD LIGHTItG 23,378 0 155794 to 3,804.84 0.162753 11
~
12 TOTALS 12.432.328 1, _372,4 g y ,1 g g,11gqq7 18 Street Lighting: 14 16 'IDWN OF HUDSON 1,256,644 136,608.52 0.108709 16 'IUWN. 0F SKM 37,817 17 'IDWN OF BERLIN ' 7,661.42 0.202592 1RB R1 - @ 3g totals n ?inino 1_. ?o d . 84 0 lad.151'54 n.111 ant le Tovat: 13,727,177 1,516,843.69 0.110499 PURCHASED POWER (Account 885) ,
*h,Ech N [r co) c, S te'sNeNaved n)
K.W.H. (c) Am. unt a> <e> 30 21 22 23 SEE PAGES 54,55,56 24 25 to 27 28 29 Totats 251,941,923
, 25,166,235 SALES FOR RESALE (Account 447)
Yo* n,ecY r Ningfoofsve$eY W % K.W.H. Amount T c.) u> <e> 30 81 82 g y N O N E 37 9 !
- s *
- Q) e TOTALS
.4 M
..- -g .
.{C l
5l 5-ELECTRIC OPERATING REVENUES (Acceent 400)-
- 1. Report below the amount of operating revenue for the year for each premeribed necewest sad h emannt of added for billing pum one custeamer sball be counted h
- 4. Unenetered sales ebemid be indeded baiser. Me 3 '
increase or decrease over the F;i;2 , year. for each group of uneters so added. - The average number
- 2.*,Ifreportedleeresses andexploie decreases of customers fneens the everage of the]2 Sgures et5.the are met darleed from elese of each snonth. If the I deteIIe et sect selee eheuid be given in a festesee.
et Comunsreimi and M ed in the rest. Accumet 442. seemlig to Smen (w
}:
e Fe.: figures any Imesadstencies. eeunt dentsel servia elemmisestion indedse eastesters conneed edestrial seer be severdig to e tu6 ef I -
- 3. Number of custerners should be so 3 basis of member d sneters. plus
- ported on the snom then one beteeme of sp=cial sorelees. such as water et Set rete heating. etc Indseate in a footnote the number of such beds d elemmiteetten is not 1988 Kw of 5 mecaus% eseept that where separate soeter readings are dupliente customers included in the :* demned. See Account 442 Unifona Systeur of !?
p-- Accounta. Emplein basis of classisestion. . IN [* Operetang h *O susemassanes,e 14eed a- .. Snerosse er *e: Amount for ~ gneyeess er Uno Acceent Yeer (Deeresse) > - Precedeng Year Amount se r h ; bens Poesnter ter leereman er ir fee. (e) Veer (Coerseest tous*Z 30 (b) (c) p,ecogeng y , y, py,eengangy es, (ir) g) g,) i' ggy *t* I SALES OF EIECTRICITY S S
- i; 2 446 Realderitid Sdes. . . . . . . . . . . . . . . . . . 7,685,256.71 396,201.80 66,201,051 ' (1,002,442- 8,255 140 i
3 442 Commercial and Industrial Sales: 5. *,*. ' . 4 Smas ter c-- _. M) ece instr. 5. . . 1,589,281.56 ' 2,426.42 9,976,428 ( 598,224) 1,058 i" s 27 ! 6 large (or Industriel) see instr. s. . . . 444 Moroc8pel Seles (P. 22) . . . .. . . . 17,002,680.35 1,516,843.69 2,575,835.10 157,725,576 16,171,722 -179 15 f-147,349.81 13,727,177 1 I 7 445 Other Sales to Public Authorities. . . . . . .00 .00 00 357,448 00 88 0 0 3 js ; 8 446 Sales to Railroads and Railways. . . . . . . .00 .00 00 00 3" t 1 0
-p 449 Ftrel Charge Adjus,tnenti , 1,413,683.99 564,620.43 00 00 0 0 l$
19 449 MisceIIeneous Electrie Seles. . . . . . . . . . 106.122.14 8.244.85 601,936 5,890 - i2 i 161 Total Sales to Ultimste Ca..a... . . . 29,313,868.44 11 1 ,ij 3,694,678.41 248,232,168 14,934,394 9,741 12 447 Sales for Resele. . . . . . . .. ....... .00 .00 00 00 186 *g Total Seles of Electricity *. . . . . . . . . . .. 29,313,868.44 0 0 ;E 13 3,694,678.41 248,232,168 14,934,394 9,741 14 186 - OTHER OPERATING REVENUES . 15 450 Forfeited Discounte . . . . . . . . . . . . . . . i 16 451 Miscellaneous Service Revenues . . . . . . .00 , 17 453 Sales of Water and Water Power. .. . .00 .- 18 454 Rent from Electric Property. ..... .. 27,484.00 er ch, des ,,,,,,,, r,,,, ,,, sic,gio, og r,,, eg,,,,, g, pf,236,g,3j,32
, ,, , ,, ,,,,,,, L 8
19 4 55 InM,.. .. ~.tel Rents . . . . . . . . . . . . *00 20 456 Other Electric Revenoes. . . ........ 21,265.23 21 Total KWH to which appned.... 246.,975,524.......... l 22 { 23 3 ! 24 g , ! 25 Total Other Operating Revenues. .... 48,749.23 . 26 Total Elcetric Operating Revenues. 29 262.617.67 9
=.
_ . _ _ l. ic__u..___ _ __-_--_..___._:- _s___.a-_-... _ _ _ _ _ ____ ..-_..e_ _ _ _ _ - -' _ _ _ _ _ _ . _ _ _ - _ - _ _ _ - _ . _ _ _ _ - _ _ . - - .'- w wie. . g "-
'T* # ,e *g'v' --./-~w 3- T"T--+---" .* % '-*
r v i t ;
. Anavet repoes cf... ... ............ TM.3l.SI..tWh.SQR.L.f.G'.IT..AED..RDWER..DEPAO.'W BN'f****** T**' *h8*8 D****b8' 81.18.89e
, SALES OF ELECTRICITY TO ULTIMATE CONSUMERS
- Report by secount the K.W.H. sold. h amount derived and & number of ewtomers under each Aled schedule 2
or contract. Municipal annes, sentract sales and unbilled salas may be reported separatel:. in total. l A f *ete
' n;,, Numb.er we, m. o bf. Customers e.,es)
. .n .)
Une Account Schedule K.W.H. flevenue (c.0000) July 31. December St. , we. No. (e) . (n) (c) (e) (e) <r) I 1 *440 *A* Domestic Rate 37,814,831 4,676,203.13 3.123661 6,224 6 265 2 442 *C* Conrnercial Rate 9,873,161 1,576,818.85 3.159708 1,019 1,049
'8 '442 *D* Power Rate 157,725,576 : 7,002,680.35 3.107799 186 194 .
4 L440 *E* Wtr. Htr. Res. 10,995,492 1,230,819.85- 3.111939 1,130 1,116 6 440 *F* Rate All Elec. 17,390,728 1,778,233.73 3.102252 917 905 i 6 442 *G* Rate Com. Heat 103,267 12,462.71 3.120684 4 4 7 444 Street Lighting 1,294,849 144,351.54 3.111481 3 3 8 444 Municipal Sales 12,432,328 1,372,492.15 3.110397 '84 86
'8 449 Yard Lighting 601,936 106,122.14 3.176301 161 163 10 449 Puel Charge Adj. 0 1,413,683.99
- 11
< 12 . 18 14 16 18 m 17 e 18 21
.. 22 .
28 24 , 25 ,. 26 27 28
.,.' 29 30 31 32 1
33 34 35 86 I 3 l 38 89 ; 40 1 41 42
~
f 43 . i 44 45 46 .- 47 . 48 4g TOTAL SALES TO ATIMATE , CONSUMERS (Page 3') 'ine 11) 248,232,168 '29,313,868.44 0.118091 9,728 9,785 M m - - _ _
r li i
.. 1.
39 L - y ,; 4aauel eeows et...............coisN..or..ll0840N.MGW4MOf50WEONP6VlWEN9... **.. M**'enees Deeember 31 to39
.,e p' ELECTRIC OPERATION AND MAINTENANCE EKFENSES
~ 1. Enter la the space provided the operaties and malatenames esponess for the year.
- 2. If the ineresses and decreases are not derived from r..dm 4 reported Agures esplain in footnote.
Incru. s or { m, he. Account (*) Amount for veer %','"'n',y',','"
- (b) (c) 1 POWER PRODUCTION EXPENSES 8 8 2 STEAM POWER GENERATION 8 Operation:
4 500 Operation supervision and engineering. . . . . . . . . . . . . . . . . . . . . 5 501Puel................................................... 6 602 Steam ex pennes . . . . . . . . . . . . . . . . . . . . . . .............. 7 603 Steam f rom other sourew . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 604 Steam transferred - Cr.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 505 Electrie esponsee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 506 Miseellaneous steam power aspenses . . . . . . . . . . . . . . . . . . . . . . . 11 607 Rents.................................................. 12 . Total opera tion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~ m m 13 Maintenenee: 14 510 Mainterinnee supervielen and engineering . . . . . . . . . . . . . . . . . . . 15 511 Maintenenee of structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 512 Maintenance of boiler plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.t 17 518 Maintenance of electric plant... . . . . . . . . . . . . . . . . . . . . . . . . . . . l 15 514 Malatenance of miscellaneous steari plant. . . . . . . . . . . . . . . . . .
i 19 Total maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . m m -j 20 Total power prod'2etion esponses - steam power. . . . . . . . . . m m 21 NUCLEAR POWER GENERATION 22 Operation: 23 517' Operation supervision and engineering . . . . . . . . . . . . . . . . . . . . . 24 518 Puol................................................... 25 619 Coolanta and water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 520 Steam es pessee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 521 Steam from other sources. . . . . . . . . . . . ................... - 28 522 Steam transferred - Cr.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 528 Electrie esponses. . . . . . . . . . . . . ......................... 30 524 Mineellaneous nuclear power expensee . , . . . . . . . . . . . . . . . . . . . . 31 52 5 Ren ts . . . . . . . . . . . . . . . , , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ' 32 Total operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . m m 33 Malatenance: 34 528 Maintenanee supervision and engineering . . . . . . . . . . . . . . . . . . . 35 529 M d=a==== et structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i 36 530 Malossammes of reactor plant equipment. . . . . . . . . . . . . . . . . . . i 37 581 Meistenenee of electric plant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ' 38 582 Mainteennes of miseellaneous nuclear plant. . . . . . . . . . . . . . . . . 39 Total maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . m m ,
+
40 Total power production espeness. nuclear power. . . . . . . . . . .
~
m m _ 41 : HYDRAULIC POWER GENERATION I 42 . Operation: 43 635 Operation supervision and engineering. . . . . . . . . . . . . . . . . . . . . . 44 546 Water for power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 587 Hydraulle exponess . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 588 Electrie expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 539 Miscellaneous hydraulic power generation exper.ses. . . . . . . . . . 48 54 0 Ren ts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Total operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a m m
s anueEsewt c ...... . . .... . . . . . . .. . .. . . .. .f...'.'.#I.i. .k..U.Y.3."'."..t'Old. TAW.1............vese eases oseembec! M. nt;89 ELECTRIC OPERATION AND MAINTENANCE EXPENSES-Continued e- , i.e,es.e e, g, Account Amount ser ves, D " , Q ,*
- e. m m m 1 HYDRAULIC POWER GENERATION-Continued 8
{ 8 2 Maintenancet 8 641 M aintenance supervision and engineering. . . . . . . . . . . . . . . . . . . 4 642 M alntenance of structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ' 6 643 M aintenenee of reservoira, dams and waterways . . . . . . . . . . . . . 6 644 M aintenance of electric plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 645 Malatenance of miscellaneous hydraulic plant. . . . . . . . . . . . . . . 8 Total maintena n ce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . m nwr. 9 Total power production espenses - hydraulle power. . . . . . . wg. u a, 10 OTHER POWER GENERATION 11 Operation: .. 12 646 Operation supervision and engineering . . . . . . . . . . . . . . . . . . . . . 21,104.19 1,609.30 18 647 Fuel............................. ...................., 687,643.87 186,518.34 14 64 8 Generation ex penses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203,961.65 35,250.78 ' 16 649 Miscellaneous other power generation expenses . . . . . . . . . . . . . . 40,009.39 2,542.97 16 6 5 0 R e n ts . . . . . . . . . . . . . . . . . . . .", . . . . . . . . . . . . . . . . . . . . . . . . . . . .00 .00 17 To tal ope ration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . oq9 no m 99q_o93.to 18 Maintenance: 19 651 Maintenance supervision and engineering. . . . . . . . . . . . . . . . . 19,714.62 652.21 20 652 M aintenance of structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,200.39 24,534.13 21 853 Maintenance of generating and electric plant. . . . . . . . . . . . . . 243,718.42 123,909.44 22 554 Maintenance of miscellaneous other power generation plant... 3,285.77 (139.23) 23 Total maintenance . . . '. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2n3 o 3 a ., n 148.956.55 r 24 Total power production expenses - other power. . . . . . . . . . 1.25I.~6M.30 374.877.94 ' 25 OTHER POWER SUPPLY EXPENSES 26 5 5 5 Pur eb ased power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 166 234.87 8 8 3,583,353.08 - 27 656 System control and load dispatching . . . . . . . . . . . . . . . . . . . . . . . 23,204.88 1,920.30 - 28 657 Other ex penses. . . . . . . . . . ................... ......... 91,914.05 (55,065.65) , 29 Total other power supply expenses. . . . . . . . . . . . . . . . . . . . . . 25.281.353.80 3.530.207.73 30 Total power production expenses . . . . . . . . . . . . . . . . . . . . . . . 26.535.992.10 3.905.085.67 al TRANSMISSION EXPENSES 82 Operation: - 83 660 Operation supervision and engineering . . . . . . . . . . . . . . . . . . . . . .00 .00 84 561 Load dispatchlag . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .00 .00 85 662 S tation ex penses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 464.02 145.69 86 663 O verhead !!ne espouses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .00 (50.00) 37 664 Underground line espumass . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .00 .00 , as 665 Transmission of eisetrielty by othere. . . . . . . . . . . . . . . . . . . . . . 676,521.63 142,357.57 Q 666 Mtseellaneous transmission esponses. . . . . . . . . . . . . . . . . . . . . . . .00 .00 40 667 Rents.................................................
. 50.00 50.00 41 : Total operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 677.035.65 142.503.26 42 Maintenenee [
a. 48 '668 Maintenanos supervis'en and engineering. . . . . . . . . . . . . . . . . . . 468.78 468.78 44 569 Maintenance of structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .00 .00 46 670 Maintenanos of station equipment. . . . . . . . . . . . . . . . . . . . . . . . . 1,941.46 (18,938.98) 46 671 Malatenanos of overhead lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . .00 .00 47 672 M aintenance of underground lines . . . . . . . . . . . . . . . . . . . . . . . . . 00 00 48 673 Maintenance of miscellaneous transmission plant. . . . . . . . . . . . .00 (75 .00) O Total malatenanee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,410.24 (18,545.20) 60' Total trat-laston espenass. . . . . . . . . . . . . . . . . . . . . . . . . . 679,445.89 123,958.06 a.
h& Annwei reeeet'et............rQ17N.OE.MMQV..M.GM. AM..P.9.T.I5..E.E.I.E.E.I............. veer eased December 31. Ie 0.9
- f. ELECTRIC OPERATION AND MAINTENANCE EXPENSE 8-Continued a
Increase er g Accewat- Ameent ser veer ***' ** No. . (e) (b) (c) 1 DISTRIBUTION EXPENSES $ $ 2 Operation: a 3 680 Operation superviaton and engineering. . . . . . . . . . ... '21,812.29 2,115.76 4 681 Imad dispatching . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .00 l
.00 682 station expensee. . . . . . . . . . . . . . . . . . . ................... 881.88 ;L 6 874.35
-6 688 Overhead line apensee . . . . . . . ......... . ............., 16,478.09 4,284.36 7 684 Und'erground line espeneen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172.61 (67.39) ,
8 686 street lighting and signal system expensee . . . . . . . . . . . . . . . . . 8,076.40 678.90 9 666 Meter es ponses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29',117.25 8,991'.40 10 687 Customer installatione expenses . . . . . . . . . . . . . . . . . . . . . . . . . 2',784.39 ( .42) 11 688 Miseellaneous distribution expenen . . . . . . . . . . . . . . . . . . . . . . 7,373.79 1,129.56 l' 12 689 Rents.................................................. 101*.00 75.00-18 Total operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ob, /9 /. /U 15, Ubl . N 14 Malatenance: 16 690 Maintenance supervision and engineering . . . . . . . . . . . . . . . . .. . 21,580.51 2,098.36' 16 691 Maintenanes of stru ctu,es. . . . . . . . . ..................... .00 .00 , 17 692 Malatenanee of station equipment . . . . . . . . . . . . . . . . . . . . . . . . . 23,537.62 (11,662.38) . ! 18 698 Maintenanee of overh ead 113es . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191,329.87 14,958.37 i!' 19 694 Msintenames of underground lines . . . . . . . . . . . . . . . . . . . . . . . . 5,214.31 (1,474 93) 20 696 Maintenaam ot tine transformere . . . . . . . . . . . . . . . . . . . . . . . . 9,000.85 569.63 21 696 Malatenance of street lighting and signal systems. . . . . . . . . . . 10',286.16 1,419.53 22 697 Malatenanes of metere . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,496.66 4,623.93 '; 28 698 Maintenames of miscellaneous distritiution Idant. . . . . . . . . . . .' .00 .00 4 24 Total main tenana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.m A 4 c: on 10,532.5] kf 26 Total distribution apensee . . . . . . . . . . . . . . . . . . . . . . . . . . . is7'.245 38 28.614.03 26 ;l CUSTOMER ACCOUNTS EXPENSES 27 , Operation: 28 901 Supervision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,240.88 .860.41 29 902 Meter reading esponses . . . . ; . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,002.85 (1,614.42) ; 30 903 Customer records and collection expeness . . . . . . . . . . . . . . . . . . 141,839.80 9',968.65 i 31 904 Uncollectible secounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ' 18 ~,024'. 8 5 (3,866.95) 32 906 Miecellaneous customer secounts aspensee. . . . . . . . . . . . . . . . . .00 .00 33 Total customer accounta espenses . . . . . . . . . . . . . . . . . . . . . . 34 911.10 R . _18 5.347.69 :; SALES EXPENSES 4 36 Operation: l 36 37 911 Supervleion . . . . . . . . . . . . . ... .... . 912 Demonstrating and selling expenses . . . . . . . . . . . . . . . . . . . . .
.... ...... .00
.00
.00
.00 l
38 913 AdvereWag esponsee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50'.00 25'.00 ; 39 916 MI=n=== sales esponess. . . . . . . ......... . . . 19,900'.46 (4,056.40)- q 40 Total sales empenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 1o ocin.dA (4.011.40') ADMINISTRATIVE AND GENERAL EXPENSES 42 Operation: 43 920 Administrative and general alaries . . . . . . . . . . . . . . . . . . . . . . 236,587.13 18,660.25 44 921 Omos supplies and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11',591.23 538.88 s I 46 922 Administratlw asponses transfernd - Cr.. . . . . . . . . . . . . . . .00 .00 ; 2 46 928 Outalde serviens employed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 755,228.53 496,787.83 i 47 924 Property lasurana . . . . . . . . . . . . . . . . . . . . . . . . .. .. ,, 29,333.70 .00 48 926 Injuries and damage. . . . . . . . ...... ..... ....... 127,560.38 (15,354.64) l 926 Employee pensions and bene 6ts. . . . ........ ... . .... 381,507.23 4,373.39 49 60 928 Regulatory commission expenses . . . . . . . . . . . . . . . ... .. .00 .00 q 933 Transportation. Expense................. 61 52 930 Miscellaneous general expensee. . . . . . . ....... ... .... 60,g8.g 23, 4. (g',g.g . ] 63 9 81 Ren ta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .00 .00 64 Total epoistion . . . . . ..... . .. . 1,g7g c;11.47
- ~
... . . 491,994.94 c
[ 3 s i
d '. y canuel e: port cf................I.9.7..N.fil!DM#.1.it;Hg'.dND' PNR "PMmiun'a'"'*Y**' C"**8 D****b 31+ 18 89 1 ELECTRIC CPERATION AND MAINTENANCE EXPENSES ~-Coattamed '. i increase et - une ^***""' No. (e)
^***"*'Y**'
(t>) N'e"'N*(g) l 1 ADMINISTRATIVE AND GENERAL EXPENSES-Cont. 8 8
'l 2 Maintenance: A 3 932 Maintenance of general plant. . . . . . . . . . . . . . . . . . . .
4 Total administrative and general expenses. . . . . . . . . . . . . .
... ... 35,820.25 1,662,351.72 (21,610.80) I4 470,384.14 5 Total Electrie Operation and Maintenance Expenses. . . 29,466,092.23 4,529,358.19
. t
SUMMARY
OF ELECTRIC OPERATION AND MAINTENANCE EXPENSES l Line tv actional Clessificetion operetion No. Melntenenee Total (e) (b) (c) (e) , 6 Power Production Expenses 8' 8 8 7 Electric Generation: 8 S t e a n power . . . . . . . . . . . . . . . . . . . . l 9 Nuclear poser. . . . ........... . . 10 Hydraulle power . . . . . . . . . . . . . . . . It Other power . . . . . . . . . . . . . . . . . . . . 952,719.10 301,919.20 1,254,638.30 > 12 Other power supply expenses . . . . . . . . 25.281.353.80 .00 25.281.353.80 26,234,072.90 301,919.20 { 13 Total power production expenses., 26,535,992.10 l 14 Transmission Expenses . . . . . . . . . . . . . . . 677,035.65 2,410.24 679,445.89 15 Distributico Expenua. . . . . . . . . . . . . . . 86,797.70 270,445.98 357,243.68 i 16 Customer Accounts Expenses. . . . . . . . . . 211,108.38 .00 211,108.38 17 Sales Ex penas , t. . . . . . . . . . . . . . . . . . . . 19 950.46 .00 19 950.46 18 Administrative and General Espenses... 1.626,.531.47 35.820.25 1. 6 6 2,. ~4 91. 72 19 Total Electric Operation and 20 Maintenance Expenue. . . . . . 28,855,496.56 610,595.67 29,466,092.23 : J i 1 l l 21 Ratio of operating expenses to operating revenues (carry out decimal two pisees, e.g.: 0.00%) 1,01 g i f*7%'lI),f0MDMNe72mN =EIA t. N)" W. . . 02 Total salaries and wages of electric department for year, including amounts charged to oper* 1,240,595.87 ating ex penses. conserustina and other accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . * ' 23 ) Total number of employees of electrie department at end of year including administrative.' 36 ' operating, maintenance, construction and other employees (including part time employees) l
. . . .~
'I
. , ._y, , w- ' ' ~ ' *'
_s- . _ f
.v
._ -r TAXES CIfARGED DURING YEAR ?
- 1. This schedule is Intended to give the account dis- g tribution of total taxes 3. The aggregate of each kind of tax should be listed number of the appropriate belance sheet plant secount E Seal accounts during the charged to operations and other under the appropriate heading of 'Tederal." " State /* and - or subeccount.
1
- 2. Do not inclede and other mains teses which "Loemr* in such rnenner that the total tan for each State ~ 5. For any taz which it won neemmenry to apportion 2 have been charged to accounto to which the nieterial - and for aH subdivis6 ens een readily be eseertained. to snore them one utgity departniest er esseums, state K
' ~
on which the tax was levied was changed. N the actual . suees tan. .
. or esthneted announts of such teses ese
- 4. The accounts to which the tases charged were dio- ' in a footnote the basin et w " :
they tributed should be shown in colusnns (c) to (b). Show - to deferred 6. Do not inchsde income in this schedule emeries eMn saw
*==me should be shown as estimated or actual amounta, a footnote and deshmated her both the utility departenent and newnber of account roll deductions or otherwise pending transmelttel W or taxes ceEseted par-of such - i charged. For tames eberged to utBety plant ghow the tases to the tas!ng authority. : -s I jq '
yg7 Deserstweten et Temos C._.W (emet ceneap : 2-(Show attlety department where esoticebee end aci _J charged) j o Uno Dortaa Veer Doctric Gas {N n=. Mind of Ten (omit cents) (Acet. 400. 409) (Acet. 408, 409) j'3 ,
(c) (d) (e) ' u) (s) m) m ts : =6 I :o
- z 2 REAL ESTATE TAXES (5,670.41) (5670.41) 3 !5
- a --
4 : :::
- .a 5 :,.
* : :a:
- o 7
i4 8 :o
*3
' : 89
- :=
le io 11 :.M 4 12 **
- :e i 13 14 jg '
15 : 16 : 4 17 : , 18 .i* 19
- 3 2e 4
' 8 21 - i 22 2s i 24 2s - 2' L 27 -= 1 28 . was (5,670.41) ._ 1- (5670.41) xx w e. e
'v- - - ,,3. - .yu ,,e 4.%._ ~ p. -g -..- , __, s , . , _.,,7_ >,, ,_ _ _
,m_,_ ,_ ,,
.' .. I 2\.
,- .C3
. POWN OF llVDSON LIGHT AND POWER DEPARTWENS .
Annuel report of. . . .. .. .. . . . . . . . . . . . ........ . . . . . .. . . . .. ..... .. . . . . . . . . . . ... . ... . . . . . . .'. . . ..'. . . ... .. . ..... . . . .. . .. Veer ended Deeember31,19. 3 9
, . ^k OTHER UTILITY OPERATING INCOME (Account eld)
R* Port below the partleulate called for la each column. -
-n, . + un, Pg Amount et Amount of of Operatens e,
(Lees) from ,
'*****"t R** nvo tapenees o,e,etwn .
see, g.) (b) (c) (s). (e)
-1 t
,a {.
4 6 ' 6 7 , -1 8 l' 9 10 N 0- N E 11 : l~ 12 1 18 I i- 14 l 16 18 . 17 18 . 19 i to 28 9: 34 26 24 27 l. m . 80 31 St . S4 36 l 88 t 81
. 88 C3 40 41 42 p 48 L-44 46 .
48
- . G.
C) i 41 m ALs 1 4 e
' x - -_,s--- ' - . , , ~ . - - . y., -,,a ,,- , .yy- -
, , 4
. . . . . . - .~
A I
^ * '
COM: 09 yygggy. 51 . ? Annaee report cf....... .... .............. ...... .......... ..h.N..f.ED..ROKER.cspf,gn,,........... veer eness Dee.n.a.c si. isS,9 U INCOME FROM MERCHANDISINC. JOBBING, AND CONTRACT WORK (Account 418) Report by utility departments the revenues, ecsta. empenses, and not ineone from merchandising, jobbing, and contract Pi n ? work during year. - ;
'V s j m%r Electric ' Gas UtHtty
!ine item Desertment Department Department Total No. (e) (b) (c) (d) (e)
' g':
r
, )
. V 1 Revenues: 8 8 8 8 2 Merchandise sales, lees discot:nts.
3 allouranees and returns. ...... .. . .. 4 Contreet work . . . . . ...... .. . . 5 Commisalons. . . . . .. .. .. . . . l 6 Other (list seeording to major cleases). ..
' f ,
8 ( 9 10 Total Revenues ; . . . . . . . . . . . . . . . . Il 12 13 Costs and Espenses: 14 Cost of sales (list according to major
]
15 elanses of east). . . . . .. .. .... .... 16 17 18 N O N B 19 20
;[] 21
\ 22 23 24 25 26 Sales esponess . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27 Customer accounte espensee. . . .......... 28 Administrative and general empenses . . . . . . . . 29 30 '. l 31 32 33 34 35 . 36 1 37 38 29 40 'l 41 f s . 42 1 f,
'. 43 44 i 45 1 46 l P
s 47 e o ' 48 i
= :
i I- 49 l ' 50 TOTAL COSTS AND EXPENSES q 51 Not ProSt (or 14es) . I a > , 1 lt
- - . ~ . - - , , . .. . . - - . . . . - . . ., .. .
O
- i i
Annuel eeeert et....... .... ....D.E. 9.I..E.E.9.I.9.h.'..k.l.W...@...P,Q,Q,,,Q,W, @,g,,,,,,,,,,y,,, ,,,,, ,,,,,,,, 3 3, 3,,,,,8 9 j l
-\
SALES FOR RESALE (Account 447) l
- 1. Report males durina year to other electrie utilities and to cities or other and place an z"in column (c)if sale involves esport merces ulh c'wumers.pubbe authorities for distribution to a state hoe.
- 8. Report separately Arm. dump, and other power sold to
';. Provide subheadlags and elaamify sales as to ( Annoci. the same utilty. Describe the nature of any sales classi6ed r,ted Utilities.(2)Nonammedsted Muni ties, as Other Pc ter, colutna (b).
OtherUtilities,(3)lic Pub Au orities. 4. If dell ery is made at a substation indicate ownerablp For each sale desipate statistical c (4) R.E.A. thus: fem power FP;Cooperatives, dump or surplus power,and (L)lassi6ention DP; other,
. la column e1, inthus:
column res (bg customer osned or leased, pondent owned or leased, RS; CS. 1 fr Kw er Kwe Of Domend (Sotelfy Which) 4# gn, Selet to I Point of DeHvery Centreet Domend
** E' Monthly Mealmum Demand Annuet Mealmum Domend I
N)* (*) (b) (c) (d) (*) (f) (a) (h) 1 2 8 4 j 5 l 6 7 8 9 10 11 l 18 I4 16 N O N E h 16 17 18 19 20 21 1 28 34 26 26 . 27 28 29 . 80 81 82 O u L 86 86 87 < 40 O 41 42 g
- o
.s{ \
i' ' ;' "
\
l l TOWN OF HUD $3
- A nnvel veneet et...... . .... . .. .. ... . ... . .... . .......
. . . . . . . s....
... ..'...S ON L I G HT...
. A enees
.. veer N.D....P..O.G.E.
Deesmbee 31.19.89 .R....D..E. .P.A SALES FOR RESALE (Account 447)-Continued
- 5. If a Gaed amenbar of idlewette of maximum demand 8. The number of k!!owatt-hours sold should be the is specited in power eentract as a beels of bBlings to quantities abown by the bBis rendered to the purchasers.
'g.
@ ""**g* M ,,0 Q """
- 7. Esplain any amousto entered in column (n) such as in colusan (g readingsnas abound be actual beesd en monthly M or & N furalobed whether or mot used to the 8. If a eentract severe several pelats of delivery and determination of desnand obarges. Show la solumn (1) type smaD amounta et electrie energy are dehvered at each point, of demand reading (lastantaneous.16, 80, or 60 minutes such sales nasy be grouped.
Lntegrated). - w t
.y Revenue (Omit Cente)
Type ef et Demend Whleh KlioWOM* Demend Other te Roselng Delwed hours Cheroes Energy Charges Total (0 (0.0000) Line (D (k) 0) (m) (n) (e) (p) N,,
~~
,1 2
a-4 6 6 7 8 9 10 11 N O N E 12 13
, 14 16 16 17 18 19 1 20 j 21 1 22 23 i 24 25 26 27 28 29 30 31 32 1 83 ,
l 34 35 i 36 37 I 38 39 40 41 Totals 42
64 . .. . ' Annuet report cf....... .........T. 0..! N...O..l.r
. .. ".H.U..D..S..O..N..U..I..G..H.T....A.ND....P03R
. .. . . . . . . .. . .. . . . . . . . . .. . . . . . . . . . . . . . .DEP
. . vee rA RTHN')
ended Decem ber31,19.4 9 . PURCHASED POWER (Account 855) (eacept interchange power)
- 1. Report power purehased for ramale during the year. Authorities. For each purchase designa's statistion! elami.
Esclude from this schedule and report on page 64 particulars Scation la solumn (b), thus: Arm po ser. FP; dump or concerning interchange power tramanctions during the year.
- 2. Provide subbendings and elassify purchases as to if involva;s import neross a sts e line.. DP other. O, and place : a (1) Associated Utilities. (2) Nonassociated Utilities. (8) . Report separately Arm dumo, and other power pur.
Associated Nonctilities,. 4) Other Nomutilities. 6 M uni. chased from the same compan,y. Describe the nature of any Cpalities. (6) RAA. Co(operatives, and (7) Oth(er) Publicpurchases ela==ihed as Other Power, column (b). Kw et Eve of Domend (Specify which) Une Purthesed From I < :[f e [a
! en Point of itseelpt Contreet Average Monthly Mesimum Annuet Mealmum Domend Domend Demand No. (a) (b) (c) (g)
(d) (e) (f) (h) l 1 Pilgrim I - B.E. O Marlboro-Hudson 2500 NA NA g Vermont Yankee ' 0 X Line 578 NA NA s Maine Yankee 0 X 1278 NA NA 4 Wyman-Yarmouth-CMP 0 X 2102 NA NA 5 Point Lepreau 0 X 5000 NA NA a %'EC-Canal 0 4323 NA NA y %'EC-Mix No.1 0 X 629 NA NA a MEC-Proj . #3 Mill . O' X 591 NA NA
, MEC-Proj . #4 '
0 X 0 NA NA 30 %'EC-Proj . #5 0 X 0 NA NA 11 MEC-Proj . #6 0 X 0 NA NA 12 Taunton-Cleary Sta. 0 5000 NA NA 18 N.U.-Fbntville #5,6 0 X 3500 NA NA l 14 N.U.-Middletown#2,3,4 0 X 3500 NI NA
- 15 Pasny 0 X 238n Ni NA jg RFA-Lawrence 0 810 tA NA 17 %'EC-Holyoke #6,8 0 5000 '.A NA 18 J.I . Mix 0 X 4500 AA NA 19 20 21 22 l 28 24 i 25 >URCHAEED POWER USED AT PCHER 'IANT AND 26 l 27 28 29 80 31 82 C3 g
S4 85 ') 88 C3 e de 41 0
=
.o !
g i q' A:n el ,eeeet (f....~... [.).D. 0,?,,p,t!,p,},g,q,,1,,],c.g,,4,g,,y,g,y,(,q,,p,{.,{,4,F,3,g,1,,,,,,,,,,,,,,,,,,y,,, ,,,,, ,,,,,,,, ,,, 3,,89
. '+ r PURCHASED POWER (Account $$8)-Continued (easept laterchange power) I
- 4. If reesi la column (e(Lthus of power is atowned respondent a substation Indicate or leased. RS; neller ownerablp should be furnished whether or not used in the determination of demand ebarges. Show la column (i owned or leased. 88. .
reading (instantaneous,16,30, or 60 ininu)tes alegrated). ty
' # is pee 6ed n the eo ra as a buis 6. The number ofidlowatt hours number should be shown in column (f The mhr of quantitles abown by the power billa. purchased abould be the ~
L e" ' kilowatte of maalmum demand to be abo).wn in columns (g) and (b) abould be actual based en monthly readings and 7. Esplain any amount entered in column (a) such as fuel or other adjustments. vree .: voeuge na m n. **'** * *"***") *"'
! , Demand - h,g,g neesi .et enWh6ch
, . n e,., oi , g g-Chersee Charges Charges Telel' 0*"
g
- 0) (D n) o) <m) <n) fe) o) e.e.
tA 11 W '6,224,223 1,254,826 39i601 27,252 1,321,679 ).212344'1 l IA 11 W '4',010',735 '127,391 26,829 7, 6 71 '161,891 3.040354 2
!A 115KV 10,292',391 154,874 68,316 12,369 235',559 3.022887a
!A . 115KV 7,107,889 101,386 201,898 0- 303,284 3.042669 ~ 4 tA 11 W 41',357,998 _ 1,762',904 155,186 , 0 1,918,090 I'.04637E D 5 11 W 1A 19',566,936 '177,455 449,765 0 627,220 7.03205' s
.IA 11W ' ' 3',874',256 150'502 21;234 0 171',736 0.0443D ,7 IA 115KV 3',636,0D 311,182 f 22,209 0 337,391, 0.(9191 s
!A 115kV 0 949~,512 0 0 949,512 9 !
1A 115KV O 13T,224 0 0 133,224 to + tA 115KV O- D,409,057 0 0 13,409,057 11
)m lA : 115KV 15,077,696 '289',269 471,578 0 760,847 O.0504G 12
(, iA 115KV 10,498',495 231',701 336,803 0' 568,504 0.05415) la ta 11 W 10,985,184 195',615 351l301 0 546,916 0.04978' 14 IA 115KV 14,412,903 62,284 0 0 62,284 0 0043;u la T
~PA 11 W 2,6361D 0 213,457 0 213',457 0.000974 is 7
lA 11 M 2',461,223 D9,987 121,320 0 261',307 0.10617C 27 1A '11 W 16,692,152
. 360.',797 422,'201 0 782.,998 0.046906 18 3,
OFRID '!O KIQ.Nr 549 ( 372,608) (14,757) ( 14,757) - to 21 , 22 23 24 25 26 27 28 j 29 30 l31 82 t- as 84 85 86 87 40
- I I L g41 torats 168,461,599 19,811,966 2,901,698 32,535 22,746,199 U'D5@J 42 l m i
1 . . -~ , - - -.
INTERCHANGE POWER (Included in Account 555) L below the kilowatt. hours received and. shall be furnished in Part D, DeteIIs of Settlement for _,. _" ^" , er other such arrangement, submit a during the year and the net charge er credit la^- .-J._. deH 3 power ,. _ ..a -/.a. - algo inelahPeeer. creditIf or settlement for any other debit ameents transaction - copy than for Ingsofamong the annuelthe summary porties toofthe transmetiene and hill-
^
I wnderIn'a.J_ . _' headings and cIss=ify interchsngesincrement generation 6...J. . If the
- 2. Provide sub expense =, show such other amount of settlement reported in tE schedule for any - 2 as to(1) Asmodated Utilities,(2 Nonamociated Utili- component amounta separately, in addition to debit transaction does not represent all of the charges and ties, ) Associated Nonstil6t (4) Cther Non- . or credit for incresnent generation expenses, and give credite covered by the agreement, furniah in a footnote *-
utili (6) Munici lee, (6) R.E.A. Cooperatives, . a brief explanation of the factors and principles under a description of the other debits and credits and state and (7) Other Pu ! Authorities. For each later- which such other component amounts were deter- the anments and accounts in which such other : change acecas a state Mne place en "m" In column (b). ~ mined. If such settlement represents the net of debits amounts are includeel for the year. i*$
- 3. Particulare of settlemente for laterchange power anel credita under en :..A _..;,,.. , power pooling,
^
jg A. Summary of I -_' _ According to C , ' _ and P_elais of Interchange i*
- o
$ {c 8tNeweet-hours j2' seeme secompany f P.snt et e..: e c
{
> _, A===ne se
! E-i g uno -
5 weces.es - - pen. ores somewmane ; 2 noe ownerence No. (a) M . (c) (ep (s) to _ (at m) i e-IEPEX iU I i 3: 2 Used as station Power and Charged to 549 3 115 KV ' 91,346,680. ( ~ 145~,596)
-7,720,760 83,625,920 $2,425,543.7] i )-
( 145,596) ^ ( 5",507'.72 )!: $ d 6 :e -
; gi
.4 s
- g s :: es
- c:
9 *
!E I'
II 1 . m ats 91,201,084 7,720,760 83,480,324 52,420,036.0] iE -e -
. B. Details of Settlement for Interchange Peoer i
Une seeme of Company Espeanmuon Ameent f es (n to (a) :
"e la NHX Ehergy Irmiwx1 by H.L-sP. - Erraiy 3 2,599,743.60 8 g SdvdaM ntar 250,752.30 35 thettvdaeri ntar 33,079.97 r>Fic*srry Is gy Ehergy [bilats fran MRIL 7,353.90 (275I,248'.56)
{g 18 O d w M swing M ( 3, M .28) { Is MRIL sming (244, M .99) p to @W - N' M g 21 mae. 2.425.'i43.73 '*-
]
w4 -~ QQ * *
- J Q
OF HUDSON LIGHT OD P02ER DEPAliTWEN9 ' $7 Annuet reemt et...........t.0..W..N . . . . . . . . . . . . . . . . .. . . . . . .. .. .. . . .. . . .. .. . .. .. .... . . . . . .. . . . . . . .. . . . . .. .. . .. . . . . . . . . veer ended peeember s 1. 1 s .0 P. [
- 4 ELECTRIC ENERGY ACCOUNT beset below m basematies mund for emasereine the dhems6 tion of easeeris sewer essemead, perehansd. and tatamhameed dweae the year.
OL Line > ltem He (e) Kilawett.houre (b) e 1
- SOURCES OF ENERGY '
[. 2 Generation (excluding station use): 3 g / '- 4 -- Stean6............................................................................. 5 Nuclear.......................................................................... H y dro . . . . . . . . . . . . . . . . . . . . . . . . . . . ' 6 Other . . . . . . . . . . . . . . . . . . . .(. D. .i.e,) s. .e. l. . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . 20,301,304 ...
!? Total generation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20,301,304 g 8 Purchases................................p......................................... .................... ..... 168,461',599
~
.9 In (gram). . . . . . . . . . *****
10 91,201,084 Interchansee . . . . . . . . . . . . . . . . . . . . . . . . . . . . .sout (groes). . . . . . . . . 7.720.760 ******* 11
. , Net ( kwh ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,480,324 12 Received . . . . . . . . . . . *******
18 Transmisalon for/by othere (wheeling). . . . . . Delivered . . . . . . . . . . . ******* 14 15 T OTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ., Net ( kwh ) . . . . . . . . . . . . . . . . . . . . . . . . .q. . . . . . . . 16
.a......................................... 272,243,227 j DISPOSITION OF F.NERGY 17-Sa'ee to ultimate consumere (including laterdepartmental sales), . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18 248,232,168' , 19 Sales f or resale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ' Energy furnlabod without charge . . . . . . n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Energy used by the seenpany (escluding station use): ; 21 Electrie department only . . . . . . . . . . . . . . . . . . . . . . . . . ., . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .288,325 ... 22 Energy lossas: .j 23 1 Transmiesion and conversion lossee . . . . . . . . . . . . . . . . . . . . . . . . .10,967,527 .. 24 L
- Distribution lossee . . . . . . . . . . . . . . . . . . . . . t . . . . . . . . . . . . . . . . . 9,534',507 .. I 25 s
Unsecoun:ed for losses .' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3'.220.700 ... 26 , Total energy losus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 23,722,734 i Energy losass se percent of total on line 16. . . . . ._. & L 7.1.3 a . . . . % 28 ~! TOTAL 272,243,227
-i MONTH 1X PEAKS AND OUTPUI'
- t. mperi hwee.de, the inin=ntina enned es, see to assion.
taaenus peaks etablished meathir un talousten) aseethar eueaut Ga ; a. este erpe of ms. air peak ti-dian casesseneeses is, so, or so saimaten tatagrated.) huowatt.bours) let the eeskened enwese of elestrie energy ofrapendaat. i
- 2. bleethly peak est. (b) eheeld be passendent's masimman hwleed as - 4. Meathly output ebeeld be the eum of t's act sumeration and pesehamma plus or aos ja pies se mises met trame-measured by the sum of its estaandstal met seaaration and pereneses phes -
er minus met sanerehanee meses temperan dehvertas not tatersbaneel for the punt aeree with has 18 above. el emerseeey pow to another erstem. Meathly mammen, er ehenisme. 3, 3 m ,espondent has two or mese power imelodme auch em met
. emersoney deuveries eheukt be shawn le a feemste wt a be.of espleastaea as to the esture of the esseressey. sy,e,s,s,eted
,, the aformatsoa saland fee below be i for -l i
System
-j Monthly Peek
'i Wenthly Output Day of Line ' Month Milewette Deyof Week (kwh)
Month Hour Type of Iteeding 94 o. (a) (b) (c) (See Instr. 4) (d) (e) (f) (g) 29 January........ 42,600 hursday 5 9:00 60 Min. 24,135,586 30 Febfuary....... 40,500 Friday 10 9:00 60 Min'. 21,996,048 31 March . . . . . . . . . 41~,300 Tuesday 7 9':00 60 Min.. 23',565,273 ! 32 April . . . . . . . . . . 37',100 Tuesday 11 8l:00 60 Min. 21,629',392 33 m y........... 36,600 Wednesday 31 15:00 60 Min'. 20',928,615 84- June........... 42',100 Tuesday 27 15:00
~
60 Min'. 21,891',794 35 July . . . . . . . . . . . 44',300 W ursday 27 16:00 60 Min. 22,610,158 36- August. . . . . . . . . 41',300 Wednesday 16 15:00 60 Min'. 23',253 779
~
.- 37- September. . . . . . 43',300 Monday 11 15:00 60 Min'. 21',598;,,804 38 october. . . . . . . . 37,800 Wursday 19 15':00 60 Min'. 22',098,079 39 Nowmber. . . . . . 39,900 Thursday 30 9':00 60 Min'. 21',712,419 40> December. . . . . . 43',600 Priday 22 8~:00 60 Min'. 26',823,280
}g' ygygt 4/4, N ,44/
]
n I t Annuelrepart o1...........t*0?tM OP lit!DS0!! LIMIT AUD ' POWER DEPARTMENT
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... . . '
- a r end CENEg g neopt celear, Og' g Statione) - ,
ameruct on 1 ) . I tarre otatione for the purges, of this e i;edule see staman and t ' m etauena of 2.400 he* oe mese of a seese and other egatW.. I e. If peak demaad ler e0 salautes le set eenD ble, slee that ehkh le - 800 Kw* er more of instelled fan- g.asts reteessh ('IvJ100 kW semuable, epostfrime parted. and 3.aao M e, uvely, ano e. se opersues reeeause of re* 6. If a group of earployees attsade mese than ca. roets.
. poedelst are e34. Am of De8ed - saport e bee la the appresanate overnee numba e' we+ p.t as etauoa, .
es eat ' p.mL neuemates 3 If any at it is lansed essetteJ e e lisease from the Federal s.1: 4..
- t J purehe er o,pera,ted as aacilitr, nadiente suet feets Dr
- Power be.ee. the B.t.u. asetent of the use Commammes.
ef esteraka and estnotes. - theens ni on.sa, % . - a toere,vei
.nsa ama sae e.aewer uf eessumed eeeverted to '
- 3. e ify if total rlaat espeedts I g
I es eal er en hae 4. .d in kee lastead of Mle*ntes 7. Quantities s 8 fuel consumed and the average seet per util of fuel esasumed should he essentaat with sharges se esponsa asseunto 401 and i Line te 'n
"** Plant Plent Plent
_ CIERRY D.STA HLPPUKING # ! 1 Kind of plant iei .ydro,lat. comb.. gas turbh. Int Coftb Int Comb i 2 Type of plant r- 7ve'lon (fonventional, outdoc boiler. full outti . e t t:. ) . . . . . . . . . . . . . . . . . . . . . Convent 10nal Convent 10nal , i 8 Year originally et,ns'.ructed . . . . . . . . . . . . . . . . . . . . . ! 1897 1962 4 Year last unit w se installed . . . . . . . . . . . . . . . . . . . . . 1972 1962 5 Total installed sepacity (marimum pnerator name plate ratinge in kw). . . . . . . . . . . . . . . . . . . . . . . . . . 16,150" 4,400 1 6 Net peak demand on plant,-idlowatts (60 min.).. . . 16.0 4.4 I
'7 Plant houre eoenneted to load . . . . . . . . . . . . . . . . . . . 1229 947 8 Net continuous plant espabBity, kilowatts:
-9 (a) When not limited by condenser water... . . ' . .15,200 4,400 10 (b) When timited by condenser water. . . . . . . . . . 15;,200 4,,100 11 Awrage number of employeen . . .'. . . . . . . . . . . . . . . . 12 12 Net peeration, esclusta of station use. . . . . . . . . . . 17,376,804 2,924,500 I 18 Cost of plant (omit emats): '
14 Land and land rights. . . . . . . . . . . . . . . . . . . . . .
. 5,500 .!
15 Structures and Isoprowinsats. . . . . . . . . . . . . . . . .
. 332,768 16 Reservoi,s. dams, and waterwaye . . . . . . . . . . . . . . j 17 Equipment esses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,022,400 712,054 i 18 . Roads. taDreads. and bridges. . . . . . . . . . . . . . . . . .
19 Total cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3;360.668 20 Cost per kw of installed especity. . . . . . . . . . . . 791.390 'i
'M 1 180 '
21 Production expenses: 22 Operation supeevision and engineeringo ... .. 21,104.19 28 Station labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174,356.79 ! C4 Fuel....................................... 687,643'.87 25 Supplies and expenses. including water. . . . . . . . . 72,900 02 26 M ain tenan ee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290.,633.43 l Rents.......'.............................. 27 28 Steem from other esafesa. . . . . . . . . . . . . . . . . . . . . 29 Steam transformd--Qeq54. . . . . . . . . . . . 80 Total production esponses. ._. . . ~ 81 1,254,638.30 __. Espenses per net Kwh (6 piness). . . . . . . . . . . * . 82 Fuel: Eind O.061801 . _ . . 83 ' Unit: (Coal. tons of 2,000 lb.) (OD.barmla of 42
#2 Diesel
- Natural Gas gals.) (Gas M cu. f t.) (Nuclear. ladleate). . . . . 42 Gal M CU PT 84 15,718 124,186 85 Quantity (units) of fuel eensmuod . . . . . . . . . . . . .
Average heat content of fuel (B.t.u.perIb. of coal. per gal.' of on. or per eu.' ft. of gas). . . . . . . . . . . 140,000 BTU 910 B'IU { 86 ; Awrap cost of fuel per unit, deli o.b. plant. . .. $26.3714 BBL $2.51564 KT J 87 . Average eest of fuel per unit consumal. . . . . . . . . $23.8731 BBL $2'.51564 K T 88 Awrap oost of fuel consumed per mDllon B.t.u.. $ 4.06015 $2.76444 p3 1 Anrap east of fuel **=== ant per kwh not gen.. $ O'.03387 40 Avergge B.t.u. per kwh met generation. . . . . .. . . 10119 41 42:
,, s 1
e , c, ;
'i i
I
+
20pW OF BUD 80N L ..c Ainmi t.o.rt of..........;......E.............. .......IGHT AND POWEA ' DEPARTMEWt 69'
,3 , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N r en p mb., a 1. I 9. M 9 'i
., CENERATING STATION STATISTICS (Imrse Stettone)-Continued -.
n (Eso.pt Nuclear, Sw Instruction 10) _. . j u - 2._,.-.- _.,e.- ...n_ .=-
- .-_. - . e. _. ._..
._. . ,1
. . . . . _ . _ . . - . . .-. _ s. . . _. .
m . <, . . .. r 1 12 3 4 5 6 7 8 ! 9 , 10 1 11 ! 12 13 14 ' 16 { 17 18 19 20 21
- 2 s 23
- 24 .-i 25 .i 26 27 28
~
29 30 31 32 33 34 Se l 37 38 39 40 l 41 42
)
- Annuel r: pert es................T..o..w..W...OF HUDSON L1GtiT Alt D POWER DEPARTMEN2
. . . . . . . . .. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . veer eneed Decm mer a n . I p .89 STEAM GENERATING STATIONS l
- 1. Report the infonnation entledifor concerning gener- lemor, data and term of lease, and annual rent. For any l
sting stations and equipment at see of year. - generating station, other than a leased station or portion 2.' Exelede from this sehedule, plant, the book cost of thereof for which the respondent is not the sole owner but which is included la Accomet 121. Nonutility Property, whleh the respoodent operates or shares in the operation of. * {
' 3. Designate any generadag station or portion thereof furnish a succinct statement explalalag the arrangement and '
. for which the respondent is not the sole owner. If such giving particulars as to such matters as percent ownership property is leased from another company, give maroe of by respondent, name of co-owner, basis o( sharing ou*.put.
seilere Pieme of Stellen Location of Stat 6en notee Men. Number Kind of Fuel Roted Reted Centinueus and Yeer end Methoe Proesure Steem M lbs. Steem Instelled of Firine in Ibe. Temperaturo* por Hour Line ! No. (e) (D) (C) (d) (e) (f) (a) 1 2 3
-4 5
6, 7 8 j
- 9. i 10 i 11 l 12 NOT APPL ICAB LE 1
- 15.
16 ! 17= 18 19 20 21 j 2'2 : 23 l 24 25 26
'tT - ;
28 6 29 i 30 - 31 3:1
, 33 34 35 36
,. 37
' Note reference:
p , ' Indicate reheat bouere thunly. 1050/1000. 1
- s. f .*
\ \ ,- .a
,s
, g m $ M.1 t '1
]
q$s" @ .. st 4 annwee report et..............f.0.W.M....OF
. . . . . .HUD80.N
. . . . . . . . . . . . . .11.G.itT
. . . . . . . . . . . .AND
. . . . . . . .POWER
. . . . . . . . . . . . ~DEPARTEENt...........
......... Veer ended poemmenl
; r-( ~ .
< 1 s
/ s, STEAM CENERATINC STATIONS-Cometaued !
ik9 .. espenses or revenuse, and how accounted for and assounts naes and/or revenues are Specify if lessor.
- 5. Designate any plaat or equipment owned. not oper.
sted, and not leased to another eompany. If such plant or 1 co owner. er other party is an annoeistEd oore . - - equipment was act operated withis the past year emplain h "'jj. 4. Designate any seeerating station or a thereof whether it bee been retired in the books er aseount or what i leased to another som and give name et dateand ' disposition of the plant er equipment and its book cost are '
- term of lease and aan root and how determ . Specify contemplated. ,. gr.P whether issono is sa asmoeisted compeay. ,
'L h.1 . [ Turtune.oenereters. AJ ] g4 , Nome Piete Reting
Steam O '
Hydrogen Sletten 4;' Pressure Pressuret Ceeecity . At - At . Yeer * *I Minimum Meadmum P***' Vefuge Meadmum instefied Type 9 Th W e n,p,g. Hydrogen Hydrogen Fee 88F K.V.f t "***P'*'* " p.s.l.a. Preeewre . Pressure . Min. ' Men. "* Line f
- fs th) (1) (D (h) (1) (m) (n) (e) (p) (g) (r) No.
lL < g 2 3 . 4 (>
- j. 1 s
+
, 6 7
8 9
, 10 11-12-4
~
NOT APP 13 LIC ABL E 14 , , 15 16 u.v .. g7 r 18 4 19 4 20 .r s 21 t 22 13 1 , 24 25 26
- ..u 21 l
," ' 28 29 30 N 31 32 33 l 34 l l
35
.(.-
N 36 Tota .s 37 s i( Note refmnces:
' Report cross <ompound tur.bine. generator unita on two lines - H.P. section and L.P. eection, t!ndicate tandem-compound (T.C.): croes<ompound (C.C.); all single casing (S.C.); topping unit (T). and noncondensing (N.C.). Show back pressures.
K-! # Designate air cooled generators, t til other than 3 phase. 60 cycle. Indicate other characteristic.
,' !!Should agree with column (m).
l l l
l C
.x TOWN OF HUDSON LI a r nvoi a: pert ct.. .... . .. .. ... .. ....... ..... ...... .... . ......
. . . ..G
. . . .tfT_
. . . . . .AN
. . . . .D
. . .POWER
......... '..DEPA RTMElit.........Txt e ntos 01c:m ber !a
-l HYDROELECTRIC CENERATING STATIONS j
rope
- t. Report the.laformatise enlied at for endconcerning
- of year. Skon. Isomer,rty ;
erating stations and equipensat associated prime movere and generators on the same line. ow dateisand leased term from another of lease company, and manual alve rent. Forname any of generating station. other than a leem d station. or portion
- 2. Exclude from this schedule plant. the book cost of thereof, for which the respondent it. not the sole owner i
whleb is included in Account 121. Nonutility Property, but which the respondent operates c ebates in the oper. l i 3.- Designate any generating station or portion thereof ation of. furnish a succinet stateme.t explaining the ar. for which the respondent is not the sole owner. Il such rangement and giving partleulare as to such matters as
)
i 4 water woe es I Name of $4stlen - tocation Name of $treern cross static l u:a Agtended of r v pe of veer Head with l unenended unita insteriod Pond ruis No. (e) (b) (c) (d) (a) (0 (e) 1 l 2 8 4 5 6 . 7 , 8 ,
.g l 10 l l
11 12 NOT APPLICABL E 15 16'
~ 17 18 19 20 a 'I 21 22 23 24 25 26 27 28 29 30 31-
'32 33 34 35 36
- l. 37 li i8
) 39
'lforizontal or vertical. Also ladlente type of runner - Francis (P), fixed propeller (FP). automatleelly adjustable propeller (AP). Impulse (I).
1
7, '
'u' _!._ _
'n ,
.j a, ..., I
- W 63
'a? P inn.ei ,:os,s . ....... .....T..O..W.N...O..F...H..U..D..S.O.N....L..I..G.i.t.?...
. ... .. A..N..D....P..O..W..E.R.
..DE.PA..R.T..M..ENT.......
, one.e oe em e, n. n .89 .
-r e, y v !
f i><.. ,, HYDROELECTRIC CENERATING STATIONS-Continued 'i i s
'- ~
.'pereent of eenenhly by respondent, name of -co-owner. Specify whether lomose is an assoelated company.
Gutput. empeness, or revenues. and how - l basis of 5. Designate any plant or equipa6ent owned, not oper.. ; esponses and sevenues are aseounted for and accounta . sted and not leased to another seenpany, if such plant afected. E lessor, co-owner, or other party is an 'I or equipment was not ted within the nest year esplain I associated saanpeay. whether it has been re
- n. 4.- Designate any generating station or portion thereof la the books of account or what -
disposition of the plant or equipment and its book toet are )
; . leased to another connaay and give name of lessee, date - contempleted.
4 and term of lease and annual rent and how determined.
'. i l
Water Wheete Centtaved Generatees . ~ Mea 6 mum hp. . Tetsi lnetelled Name Piete Number Generating ' Capetity of fro.. Reting of .- el Capetity in Kil. s Unit et - Yeer euency Unit in Unite in Deelen Head ewette (nome ' d m.P.M. Deelen Heed insteiled voltese Phase er e.c. Kliewetts stetsen (h) piste retings) ' une (t) (D (h) (1) (m) (n) (e) (p)- (q) No. 1 0 . 2
-1 3 4
.0 5 j 6
17 9 -r 10 NOT APP LIC ABL B II
' 12 I
13 (j '
, 14 1 15 i 16 17 18 3 19 20' -l 21 "A
g, 13' d
.'a 24 .i y
25 26 27 28
+
"9 30
'.o 31 q
dc 33 !
.. 34 35 7p +
38 l 2I'. Totals 39
,11
;9: '
Q' '
.c
\ n s i/ l
'N L ?. !
W ' Atavel report ef....'......... . . . .TEN
. . . . . . . Or
. . . . .if
. . .0DSON
. . . . . . . . . . . . L1011T
. . . . . . . . . . . . .AlqD
. . . . . . . . POWER
. . . . . . . . . . . . . . DEPARTMENT............
..... veer enees oce:mmer 31. oi
../
COMBtJSTION ENGINE AND OTHER GENERATING STATIONS (except nuclear stations)
- 1. Report the inforenation ended for concerning gen- property is leased from anothee company. give name of erating stations and equipment at end of year. Show asso- ?
clated prirne movere and on the same line, lessor, date and term of lease. and annual rent. For any generating station, other than a leased station, or portion
- 2. Esclude from this plaat, the book cost of thereof, for which the respondent is not the sole owner but .)
Chich is included in Aceount Neautility Property.
'3. Designate any generating station or portion thereof whleb the respondent operates or shares la the operation ,i for which the respondent is not the sole owner, if such - of. furnish a succinct statement explaining the anangement I and giving particulam as to such matters as percent owner.
Prime Move's Name of Station - Otetet of selted Lacetion of Stetten Other Type Line Year 2or4 or Direct 2 Engine Nome of Maher Instelled Cycle No. (a) (b) Connecteo
-(c) (d) (e) (f) (s) 1 Cherry St. Cherry St. Hudson Diesel American Iaco. 1937 2 Direct :
2 Cherry St. Cherry St. Hudson Diesel Nordberg-Mfg.co 1951 3 Cherry'St. 2 Direct 4 Cherry St. Hudson Diesel Nordbe rg-Mfg . Co 1955 2 Direct Cherry St. Cherry St. Hudson Diesel Nor d be rg-mfg.Co 1960 2 Direct 6 Cherry St.- Cherry St. Hudson Diesel Cooper-Bessemer 1972 6 4 Direct T g ,; Hudson Light
- 10 Peaking Plt. Cherry St. Hudson Diesel II' Fairbanks-Mors o 1962 2 Direct Hudson Light ,
12 13 Peaking Plt. Cherry St. Hudson Diesel Fairbanks-Morse 1962 2 Direct 14 1 16 17 .. 18 l 19 20 21 22-13 24 15 26 27 28 29 , 30 31 32 33 34 35 36 I 37 38 39 a O 1 l
'ji's s .. i .. .4 , . . _ . . .. _. .. .
i y , , v py , . gf ' !\ Jif ' i 4 nnuai ,eoe,uf. . . .. f0WN . . .. . .OF
. . .HUDSON
. . .. . . . . ..Lidit
. . . . . . . . . . . ...........T.. .A..N..D. . .F. .D..W. .E..R... D E.P. .A. .R..T. .W!M .
M ~ y..
. COMBUSTION pfGINE AND OTHER GENERATING STATIONS-Contina,ed .
(eseept nuclear statione) lg ehip by respondent, asene of eMwner, basis 'of ' sharing Specify whether lessee le an essoelated esempany. ) d & ". /' 4 output. esponses, or ues, and how expenses and/or 5. Dea' geste any plaat or equipment owned. not oper-revenues are for and secounto afected. Spedfy if sted and not leased to another sempany. If such plantL or utpment wee not ted within the poet year, explain o lessor co-owner, or other party is an assodated company.
- 4. to any generating station or porden thereof w it has been la the book et aseount er what ={
~ -
leased to another company and give name of lessee, date - dispoeldon of the plant or equipment and its book most are t
- . - and term of lease and annual rent and how determined. contemplated. -]
.i- l
- Prime Movere Continued Generators TotalInstelled '
Total Asted he. Meme Piete Number Generatine Casacity ,1 Reled he. . of Stetten Year- frequency Retine of Unit of Unite in K!lemette i of Unit Prime Movere Insteited : voltese Poene er d,c. In Knowette in station (name piete retines) une ,1 (i) (D (k) (1) (m) (n) (e) (p) No, I (n) ll 1480. 1480 1937. 2300 37= 60 cyl. 1000 1 1000 1 , q 4250 5730' 1951 4160 37 60 cyl. 3300 1 .3000 2 1 5100 10830 1955 4160- 37 60 cyl. 4000 1 3600 3 l 4250- 15080 1943 4160 37 60 cyl. 3250 1 3000 4 7760 22840 1972 4160- 37 60 cyl. 5600 1 5600 , 5 : 6 7 'I 8 1 R , j 3168 3168 1962' 4160- 37 60 cyl. 2200 1 2200 10 m . 33 3168 6336 1962. 4160 -37 60 cyl. 2200 1 2200 12 13 14 s O N l 17 i 18 L 19 g 20 21 22
. 23 'j 24 .
~}
n 25 q 26 ,, 27 > 28 a' 29 I 30 $ 31- .. 32 3 33 34 . 35 'k 36
- q. - . 37 38 TOTALS ~21. 5 5 0 7 yn.gon 39 7
, :r i
7 Q: CENERATING STATION STATISTICS (SesseIIstatione)
~
- 1. Small generating stations, for the perpens of this or operated as a joint facility, and give a eencise 5. If peak deinend for 60 sminutes is' met avaB . ;
- schedule. are stasm and hydro stations of less than statement of the facta la a footnote. .
able, give that which is available, spedfying parted. g
.' 2,500 KW* and other stations of less than 500 KW* 3. List anta appropdately under subbendings for 6. If any plant is equip 1 lastalled capacity (name plate ratings). - (*10,000 KW steam, by o, nuclear internal combasstion engine end -
steam, hydro, internal _._ ped ^- with coeninnaticas _ . ' engine er see tur- of e and 2,500 K' W, respectively,if annual electrie operat-. gas turbine stations. For nuclear, see instruction 10 bine equipment, each should be reported as a separate j' ing revenues of respondent are $25,000,000 or more.) page 59. - plast. Ifosever if the embaust beat from the gas *
- 2. . Designate any plant leased from others, operated ' 4. S fy if total plant capadty is reported in kva turbine is utilizedia a steam turbine regenerative feed ' i.
under a licsons from tbs Federal Power Commimmion. :I of kilowatta.
- cycle, report as one plant. :
Prodwetten Esponses Feet Coat . i 1. O Instafted 90st . 'Peent' Escluelveof Deproctetten Per Res04 j.f shpacety Peek Generetten Coot and Temos .
' feet :
Name et Plant ; stamme Desnand Estanding Per stw . (Osmet Cents) , stand Generettem : 9~ O Veer pines etw State a Cost se Ptent snet. et scenes) . ! une .caans. amesme etw (so uta.) Use (osnet Cente) Cepecety tener -_ _ . Feel ' Other
- Fuel .09.0000),
- No. (a) '(b) (c) (d) (e) . (f) . (d) (h) (f) (D . (h) (t) ; : [::
h
- en
. . : O m 1 : :c - t- '"- , "- ~. 3 ,_ i o ; 14j
~
4
- i. A kn
.- --~
- m ;
8 t. ' O ' 1 i : 4 8 i' -
- se -
9
- .m 10 : e
- p; J 11 N O T- APPLI C ABLE : *e 12 :: >an. -
13 14 lh iE 15 !" 16 i 17 i is j 19 .c 20 21 - 22 1 'I is $ 24 . 3 H w 25 2 26 -5 x 23 . TOTALS ( 1 _______4__ _ _u -._,._____-_:____:.-___a__ a__-_.:._-- -
-'~___x.-'.=____=_:_- - _ - - - _ - , - - -<w __ _
- ~
v- - - ' ___~__-._-_ ,___ - - - - - . . .- _._=_s.__. = ~_ .
. 4 nm '
iy;(+,'a::
~;p ; 7
}- L
.t-Jf0TN OF: HUDSON LIGtfT AND' POWER DEPARTWENT
- i. . .
.A nnuel reeert of. . . . . . . . . . ; .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Year onded Deceenber 31 69 i@.. ;, -
Gl I i;l:l ._ l[ TRANSMISSION LINE STATISTICS : f,N-Q Report laforsmaties'eoneerning transmission lines as ladicated below, y l 4 c ,i i Deelenetten J , Length (Pele Miles) :l
'h From opmting sue,orting - on sometmo et on sometme of Another une y,w s,s.
,e,,uejj,t,,,
, 'c une To . . vettese . serveture - une Desisneted ci,,,i:, ,,,,
te ..' - No. . (e) (b) (c) (d) (e) (f) (g) (h) -i i e ' (!j 4arl-fludson -Porest Ave.
' ' I rown Line. Substation ' llSKV Steel 3.2 2 336.~4 MC 4: I e , at River'St. Hudson Poles ACSR I 4
" Linnet" ]
5 1 01 ' 6 , p V -7 ' 8 iL 9 to 11 l 12
,lo 13 ,
i 14 l
. 'i. )
3$
'16 II
.m '
'18 19 >
lj '20 - < n 21
}.l 22 . '--'
p 23 r; to 25 79 26 't
s 27 .. 28 'l ? 29 E 30 ,
a 1 31 32
, 33 l Sli 35 4 36 .,. %.6, 37
/i 38 39 , .. 40 0; '; 43
* -j 44 e 45 a
46 N m ALs 3.2 'None 2 47
*Whm other than 60 cycle. 3 phase, so indicate. .j s - . - - , , , . , -,-w
- ^-
a, ::t ~ L _ -
.:y 7," ~_3= : .,
p ; _ -
^W
~
~
~
3 ,
; - ~ - -
J ~; ~ -+5~ i
- - := -
- x -
- y. ,
. 3 . y .;
.m . 2: - _.- iSUBSTATIONS ; . . . . . _
y 43 : 1 by ,~n mc m ,sbee an.i.f si camstw e we.ai 7 ( 4 e t. i. -- -(b)shef ei ,.eieresan.a. .t a. . es. - . _ ' r., r_- .,,.: 33 _
' . sk.nm .teh .t.ei ai ., di.ar.b.ai d .e st.ee 34 p e
. t. 6. . .ns.,,
dens u.m d f.tb.y r.,^ ,;.s., ,,e ..a..,- u 4d s at.s.as h.esh.e t,.
'7i r ..r ced. : r as ae .8.be.e.e. : . d.e. . e. ': $
3 '. -
- 6. s 4 s.,. .sw.
6 , - - ab.in cos ca - ein. _ . .s sk) . ip ch .e o . n, m .e .e. ,.e ., sr .m .v .
- r.,.s.
.,y e. .w w ie,., mtaAw . wmle.nera, ete. .d: undary eis . s et sono L.. t, e .mee t.n. W7
- s. nat.t.tm.. ..th.e. ermy su ranle. = r t sr . e=c.eps st=. M .ther puty. e,spt.a. b
..e .f el.w.s.3.esW 4 - f .tl p
. .e. s _.
_ . .i tae .8 ch s=d eewd t.i.i a , re i.em. a a tw. .e nar. s o,. b e.ii .,. .
, is .e at
.~ mes sh,
.r.,u. d r.f. b. 6 .a,,
n s.
. sp r.,a-s e. .s. css :., awc',
. si e eL.,wier. t s she a .tr. , -
.o - . . _ _-
' Ch r.ct.r . ' Vettees . g - C:. _ _ Ac; App.r. eve enes speci.8 f arisepwent -
* ~
se.me one Lee. teen et Subesees.a sonne.tson et spore ~ 3,,,,,, su,e,senteen~
, , , , . e,t,,,,,,,
Trene. . Trene- ~ e ~Ya*=8 :' j. time . Prinnery . ery Tertlery (In servece) s. Serwece eersinere Type of taoisepmene 8*"u"n*e*ne et cepeesey
~
No. (.) :(b) (c). (d) . -(e) 1 (f) (g) - (90
~
(I) -
- (3 - .: (t) . : '
f-1 Cherry St. Hudson, MA Unattended * ~,31 24001- Not- 19,200~ 2 None None None None: 2 Distribution 1380C 4160 Brought ' 3
!$.~
Out'- '
- :x: .
4 r : c 5 Forest Ave. Iludson, MA Unattended j[n: 6 13.8 Distribution 3.* 7 f.-Diesel-Tie llSKV 80001 NA 80,000 f 2. None None. None :None " 8 9 Tie with NEPCO 13800 iE i .*-3 -- 10 i>.
.3-11 3o?
12 ie-13 !O
-M 14 j so 15 io
- M 16 :,
.p-17 j :n 18 iN-19 i N
i 21 i 22 * : 23
~
y- 14 !- 16 E 1 16 27 28 w
^
g 2 ~
~~
30 . . 31 &~
. TOTALS e 99.200.
32 ^4 Nnnm' hann. sh . u~.- - m,.,,.. . _ .. . . ~ ~ _ . .m ! . - - ~ , ,.--.w', .d..-.i,-'*.- .~r_,m-_ y _ _ _ _ - _ _ _ _ *m -- - - . - - ___an_ .- -- - ~~-m -- n *- - -
3 j t
. 4
$L
~
o, , F i
,, { . !
5 l P K' " 4 s
. 1
;l'0WN OP HUD3ON LICtiT AND P07E 7.:
,a -
a aa .e .. .e . . . . . .. . . . . . . . . . . . .W . . . . . . . . .. ... ... ... . .. . ..
. . . ... ... ... . . . . . . . . . . . . .e.o.e. . . a.,
. .a.t .. 96
. .R9. i D E ;-
e , s ,L s; ( p. 4 " OVERHEAD DISTRIBUTION LINES OPERATED - ..
;[
. p 1
-i -
"e 1
- t. m (P.i. un ! ;
Un. M.. Wees Ped.e St.el Towere ~ Tot.1 [ t Mues - serinales ( Yeer. . . . . . . . . 179.8 Added During Year . . . . . . . . . . . . . . . .
.179.8 2 1.3 '1.3 .1 3 Retired During Year . . , . . . . . . . . . . . 'i 4 M Des - End of Year ; . . . . . . . . . . . . . 181 I 5
181.1 2!
.6 9
s Distribution Syeseum Charseteristka - A.C. er D.C., phase, eydes~ and operating voltages for IJght and Peoer. 10 Primary distribution at 2400/4160Y, 4800/8300Y, 8000/13800Y volts, 60 cycle,y .i 11 3 ' Phase secondary power a t 600 volts,' 60 cycle, 3 phase 3 wire 480 volta 31 J 12 Phase, 3 wires 277/480 volts, 3 phase 4 wires 220 volts, 3 phase '3 or- 4 wire s Ji l 33 120/208 voltsi 3 phase,' 4 wire lighting, heating and air conditioning 14 120/240 volts.:'120/208 volts, 60 cycle single or three, phase. .. gg , EIACTRIC DISTRIBtTTION SERVICE.S. MSTERS AND LINE TRANSFORMER $ ,p Une Teenseurmers l 2
& Numeet of - T80Bf -
ua. ceri<ie
- (' n n.. s.c w.n ei aec u .i.<. N == e :
caemaar - W as- Number at berioning et year . . . . . . . . . . . . . . . 7547' 10,208 3008 83860.0 l l- 17- - Additises during year:
'as Purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . *******
276 61 3618.0-
!s 1mstaned............................ .. 118 ******* *******- *******
20 Asseensted with utSity plant acquired. . . . . . None -None Nnne- Nnr e 1 21 Total additions . . . . . . . . . . . . . . . . . . . . . . . . I18 276 61 ' v1 A A 22 Radvetions during yeart 23 Retirenwets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 157 24 Aamodated with utDity plaat sold . . . . . . . . . . 3 .18.0' None Nnno 24 Totai reductices . . . . . . . . . . . . . . . . . . . . . 67 147 4 ~1n n-26 Number at End of Year. .. . . .... .. 7598 1n.177 07AAn n 3a66 27 lastack................................................ 690 263 12045.5.
- s teched assesse en asstoawre* precaises . . . . . . . . . . . . . . . . . . . . . . None None None 2s laaetlee enesterseers se system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None None None so l a custausass' ass . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9612. 2795 75280.5 )
31 I n ' essapany's uns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 A .,,,,, 1_ y _ n y 32 ' Nurnber e4 Eed ef Year. . . . . . . . ....... . . ... 1n1>7 ince o,Aen_n 1 1
'O e j 1
I. I 1 1 1
, I
El' p.. h.se'
- CONDUIT. UNDERCROUND CABLE AND SUBMARINE CABLE-(Dietritistion System) ~
f;
' Report belost the Informetlea celled for concernier condult. M ... _ f emble, and submertne cable et end of year. i vae<e a4cowe s o-aria c.w.
I" g, o..s ea.o.a se uao.,e...a4 on uteen.a s,.eem j", , ,,,,,,- ,,,,,,,,,,,,,, ten tes
~ tes i
to) (c) : no to) *
.1 .l' 13,800' :
I Route 495 Underpass 6.5 6.5. 13,800 2 Harvard Acres Estates, Stow 3 Meadowbrook Mobile Home -Park, Hudson e
.1.81 1.9 13,800: , }ioc io
.2 4,800 4 Colburn 5 Margaret Circle, Hudson .0- ~
~,. _
~
. 7 .. .7 13,800. 7 -
Elkin, Felton, Central St. Hudson: 8 Seven Star Lane, Stow, MA .0. .09- 4,800-jg. 1.5. 1.5 13,800 ig; 7 Forest Avenue, Hudson, MA
.5 .5 13,800- imi -
Si uniper Estates, Stow, MA 9 Carriage Lane, Stow, MA .19 - .33 4,800 13,800 jp jg3
.9 .9 '
to Brigham Circle, Hudson, MA
!! Rustic Lane, Hudson, MA .0' .2 4,800 38-12b11dwood Subdivision, Stow, MA 20 .6 13,800 jg6 3.3 3.3 13,800 I" 13 Birch Hill Estates, Stow, MA Appleton Drive, Hudson, MA .1 .1 13,800 !@ .
14 15 Cedar Street, Hudson, MA .03 .03 4,800 jg
.0 .34 4,800 i:
18 Country Estates, Hudson, MA jg 17 3eacon Benham Drive, Stow, MA .0 .07 8,320
.0 .22 8,320 jg .
18 Porest Road, Stow, MA 19 Prancis Circle,-Stow, MA -
.0 . .1 4,800 ig m
je=s 20 Utren Circle, Hudson, MA .0 .07 8,320
- 2 (ain Street, Hudson, MA (Whispering Pines) .11. .11 13,800 ,
21
.24 .24 13,800 i 22 31en Road, Hudson, MA
.14 .14 13,800- i 23 Brigham Street (Valley Park) Hudson,,MA .23 13,800 j
.23 -
24 3righam Street (Assabet Village) Hudson, MA
.07 .07 -13,800-- .
j, 25 :hapin Road, Hudsor;, MA
.:ahill Raylor Road, Stow, MA '25
. .25 13,800- .
[ 2a
.07 -
.07 13,800 ;.
21 Great Road, Stow, MA ~ 28 Digital,- Kane Industrial Drive, Hudson, MA .05 .05' 13,800 _ [ 29 Peter's Grove, Hudson, MA .05 .05 -13,000' %.. 3
. 20 .20 13,800 i 30 Johnstop Way, Stow, MA
.08 .08 '13,800 $
31 lludson Town Hall, Hudson, MA ;, -
.23 . 23 13,800
'2 Sudbury Road, Stow, MA Off Pole 121- In ' 1a 13,800 .-
38 Parmenter Road, Hudson, MA'-Off Pole 16-1 19.71 Mnne *; T***LS 17 44 34- .9b
' Indicate number of c'onductors per cable.
Y O. , ?
...s. .n.. . , , . .. . . , .m.v., .._.p,., y_
.1...,,,,,,,. , . . , , , , , , , , _ , . . . , . , _ ._
'- - - . ,,e ......:s .t .......m,., ,
-3
.~',~' -
'. . . i?j
- ler. . ? ' CONDUIT. UNDERC's.oUND CAII.E AND ARINE CAT.I.E--(Dfetribution System) f~ .-
- iReport below the liform;tfon et!!ed for con:erning conduit 3nderground cable, cnd submarine cable Et end of year.
f$.> 1-^
- - :q q
-7 . -
_ - . ua4 ...a c.mi. - s e -.<s.. c.... .. E g,, - : o..tediwa or uno.<se.aso o#. rrhuten sr .i.m - p's n'e ^ b**
- 1 "
si... '
- m. 6tico s.c e f..t* - e.,Ow *'
.3{< . enr; e tc3 - . re3 - - t.t_ - m -- e g- j
- y 1 1 Technology Drive Hudson .28?
~2
~
.28 138005 -- -
h , _ . , 2 Reed Road Hudson -
.11" .11: ~138003 5 2 - g?
Central St' Hudson
~
~13800- it
~
3 -.06- . 0 6' 4 Washington St Hudson 310 .10 13800y w& g S4 5 Barton Rd.' Stow _
. 2 6' .26 13800- 9 g- _
s -Causeway St Hudson. .12. -
.12 13800-7 Off Harvard Rd.' Stow .07- .07 13800- .g :
8 Otsego Drive Hudson .58- . 5 8 -- 13800 $ "4 s Off River-Rd Hudson .05- .05 13800 N , 10 Seneca Drive Hudson .06 . 06~ 13800'
~
1 Hazelwood Drive Hudson . 24 .24: L4160- i-. 12 Maura Drive' Stow .19 .19 . 13800 5 13 Oneida' Drive-Hudson .29 .- 2 9 ' '13800: T is Chabot Rd. Hudson .22s .22 13800 @L. 15 Beechnut Rd.: Hudson "
.14- .14 -13800- $~
1s Bonazzoli Ave.-Hudson .16 .16 13800- !, . 37 Red Acre Rd.-. Estates Stow- 1.08 l'.08. 13800 $ ._ 18 N IS *
-- :e 20 -
.A
- y 21 -
T3 . 22 i;!! 23 24 M M. 26
- 26
-4 17 28 g
g . 30 [ 31 j. 32 33 ** 34 tovats ~ 6.60 6.60 i;;
' Indicate number of conductors per cable.
~
- ~-
b 2'
.- . .h. '
,i.4-,.,4.,e ----i.,
.. ,g.. -, , , ,e s ..L. .
.yng ' , . b ' J..[.
,, - . , $ .v ,. .'rYUh [,.h ' - ,_ m -- -- ..----,._~._m_._- .___e__._ . . _ . . _ _u _
.m. - _ _ . . _ _ _ _ _ - . .,_-
l;. - Y , gog"
.. ........POWN OF'HUD00N IUGHTl AND P0%ER DEPAFTWEN1
.. z 71
- ! ..........................................................................................r-> -
-_ n y,., s. STREET LAMPS CONNECTED TO SYSTEM - ,:
, J
_- 7 T.El " inc no ICi '
.ni M.,ev,y v.p., -.__.
- .s Line Municipal 'Other H.P. Sodium -
(4o, Municipal . Oth.e' Municipal
. (e) : (b). Oth.r Municipal
' (c) ' (d) (4)-' " t (f) . (g -
Other. .j $l V ,J(- - (h) (1) (D 3 Hudson- 1971 441 s- . 15 996. 261 2 Stow '85 . 5 158 100 Sj Berlin 3 .7- 44
.3 1- 17 9 p: Marlboro 1 -
4 2- ! f g Bolton 1: 1 1-A: - 6 l' .. 7 8
-9 to ,,
11 12 j 13 14-15 16 17 18 19 '
.1 .
20 21
?[
n, 22 -' 23 ' 24 25 - 'I 26 ! 27 $ 28 , f 29 30 31-32' 33 34
.35 .
36 37 ' 38 39 3 40 41 42 43 44' 45 f 5d 48
-r 49 50 51 4 52 to s 2060 447 .18 2003 307 175 110
p1 - ,> ;n . , m , 73 ! enAl', Met.'........ TOW..OP..HI)DSM t rnpy yug g 2 2 u +d _ Y*(aded 0***m6*r 81.18N.
--"~n ucrantaggy s . _
r .. +L U-
*N1 ? -
RATE SCHEDULE INFORMATION l
- 1.~ Attach copies of all Flied Rates for General C- a 1"
i .2 Show below the shamses in rate schedules during year and the estimated increase oc decrosse in annual revenue prediested on the pewleus year's operatione.
. Estimated .
Date ~ M.O.P.U. Rete E '" Effect%.. Number Schedvie ^"""*' " ""'" inerseee. ooer.e.e. .
~1/1/89' 122- Domestic' Rate ~A~- 327',000 1/1/89- 123 Commercial Rate "C~'
99,000
^1/1/89-. 124 1/1/89:
Commercial andJ Industrial" "D" 1,005,000 ! 125 Domestic Water Heater Rate *E" 87,000 1/1/89 126 All Electric Rate "F" 172,000 L1/1/89 127- Commercial Electric Rate ~G~- .1,000
]'
Street Lighting Schedule i 1/1/89 -128 '
-8,000 :
1 i
-i'1 s
i. F t
.l
'I I I
)
A .b fr
, 4 3
.t
( l:{
;in ,
'_l . ,, ,
I 5, T
};
i t j r,: ! if n'4 r: , i f,i i
]I ii- -
l l
^
'.c+S,W L1;.
e
,,y.
d,,' 1c a,# 33
.. .: ~
< Axmt re,.o d. . . , . , ...... ., . . . 1, ,
m .. .......v, d.d e.c.6., s i , i , 89 --- ,
- - 3 , , s: . t
. b r: '
j, _ ' 1
.3..
. THi$, RETURN 15 SiONED UNDER THE PENALTIES OF. PERJURY.
p .: c y .. 4
,M. .
;i t
. . . . . . . . . . . . . . . .. . ' . . . . . . . . . . . . . . .. . .....................,........................................... Mayor.
^ %L '
i?!i~. R......... #' .=.=.=dd. v . . . . . . . . .. . . . . . . . . . . . . . .... ..... ... . . ......... ... ...x.n.gn .1 naar,.a,. aa t . . i
-,4, i
t
~i
. Selectmen
.... ..... .... g,y .
. .g. p. .
' 87
- ut,,.w of the ' 'j
.Municipel -
,s , . . . . . . . . . . . . . . . . . . , =.c...
W
-Ught ^
- gegyj, n
'a : ,' -
l.
. ? .
W [' > i .'N '! Q g lJ,- ............._............................................... g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . u ;-r
-(
I
.$1GNATURES OF ABOVE PARTIES AFFIXED CUTSIDE THE COMMONWEALTH OF +
MASSACHUSETTS MUST BE PROPERLY SWORN TO . t i y i c,., . as. , .. , ., , .. . 19. ! 7 4 i l Then personally appeared . . . 1, i r'
.' h II
}
and. severally made oath to the truth of the foregoing statement by them subscribed according to their best knowledge l: l and belief. 1 L ; V[ 1 Notary Public or
. . Justice of the Peace.
1n . 4[ i i esus
! LI )
i u _- _ _ _ m u a'.
p j-A gm M - y , , sh. . 4(f y;" 3s* , E , bij . . i] . 4 , r N - ,f fi q N Vj9 ? . INDEX '
,q F- ~g ..
Page " g M ' 21 Appropriations o( Surplus . . . . ,e . . . . . . . . . . . . . . . .
. . . 5 Appropriations $1nes Beginning of Year L.
4 U1 .
. . . . . 6. ,
9 . Bonds E . . . . . . . . . . . . .
. . 14-
, Cash Balances . . . . . . .. . . . . . . . . . .
[ " . 5 L Changes in the Property . .. . . . . . . . . . . . .- . . . . . . 64-65
;h- ' -
Combustion Engine and Other Generating Stations . . . . . . . . . . . . . . .
. 10-11.
-Comparative Balance Sheet ... . . . . . . . . . . . . . , , . . . . .
".. t
' 9" Conduit. Underground Cable and Submarine Osble . . . . . . . . . . . . . . . 70 g '
. , . . . . 8-Uz -t Cost of Plant .. . . . . . . . . . . . . . . .
!4
'% Customers in each City or Town > . . . . . . . . . . . . . . . . . .
. 14-J*
Depreetation Fund Account ' . . . . . . . . . . . . . . . . . . 12L
, ' Earned Surplus . . . ... . .., . . . . . . . . . . . . . .
- c ', . Electric Distribution Services, Metes and Line Transformers . . . . . . . . . . . . . . 69 I i ;i 57 i
. Electric Energy Accounta . . . . . . . . . . . . . . . . . . . . .
'I Electric Energy Purchased . . .' . . . . . . . . . . . . . . 22 !
. . - 37 m
Electrie Operating Revenues . . . . . . . . . . . . . . . Electric Operation and Malntenance Expenses 39-425 1X , 3 J General Information 1 . Generating Station Statistles . . . .
. . . . . . . . . . . . . 58-59:
, 4 66
' Generating Station Statistics (Small Stations) . . . . . . . . . . . . . . . .
Hydroelectric Generating Stations . . .
. .. . . . . . . . . . . . . . 62-63:
-Income trom Merchandising. Jobbing and Contract Work . . . . . . ' 51 c ti
..' 12-13;
- Income Statement ., .' . . . . . . . . . . . . .
14 -
. Materials and Supplies . . . , , . . . . . . . . . . . . .
' Miscellaneous Credits to Surplus . . . . . . . . . . . . . . . . . . . . 21i <
1
- 21 t Miscellaneous Debits to Surplus . . . . . . . . . . . . . . . . . .
21
- Miscellaneous Nonoperating income . . . . . . . . . . . . . . . . . .
']
. -. 571
.. 2 ( Monthly Peaka and Output '
Municipal Revenues ~ .
. . 22 7g/ . . . . . . . . . . . . . . . . .
. . 21 ) lj
!'* l> L Other Income Deductiona . . . . . . . . . . . . . . . .
. 150
- 1 Other Utility Operating income .; . . . . . . . . . . . . . .
Overhead Distribution Lines Operated ., 69
'J F;
r . . . . . . . . .
* ' Production Fuel and Oll Stocks ; ' . . . . . . . . . . . . . . . . . . . 18-
.- . . . . . . . . 79- <
Prate Schedule Information . . . . . . . . . . . 38-Sales of Electrielty to Ultimate Consumers . . . . . . . . . . . .. . . . .
. . . 22- ;
Sales for Resale - Elatrie - . . . . . . . . . . . . . . .
. . :4 iin
. Schedule of Estimates . . . . . . . . . . . . . . .
. 60 % Steam Generating Stations . . . . . ,
% Street Lamps . . . . . . . . . . . . . . . . . . . ., . . 71' . ;-()
, . . . 68 ,
> Substations > . . . . . . , , . . .
49 - o Teses charged During Year . . . . . . . . . . . . . . . . . .
. . . . . 7
. Town Notes .
, 67 '
N + Transmission Line Statistics , . . . . .
. 15-17 Utility Plant - Electric . . .
1 f 1 o ;
=l
t in the gas or electric plant of any city shall be subject to the inspection of the city auditor or oScer having similar duties, I I in towns they shall be subject to the inspection of the selectmen. The auditor or omeer having similar duties, or the selectmen, i y require any person presenting for settlement an account er claim against such plant to make oath before him or them,in such '
m es h1 or they may prescribe, as to the accuracy of such account or claim. The wilful making of a false oath shall be punish. e es pirjury. The auditor or omcer having similar duties.in cities, and the selectmen in towns, shau approve the payment of f bills er pay rolls of such plants before they are paid by the treasurer, and may disallow and refuse to approve for payment, in 3 ole c.r in part, any claim as fradulent, unlawful or exressive; and in that case the auditor or cmcer having duties, or the select.
, n, shall nie with the city or town treasurer a written statement of the reasons for the refusal; and the treasurer shall not pay . I s claim or bill so disallowtd. This section shall not abridge the powers conferred on town accountants by sections Af ty.6ve f1
' sixty one, inclusive, of chapter forty one. The manager shall at any tJme, when required by the mayor, selectmen, municipal
- th2 it bo:rd, the town in his department. snake a statement to such omeets of his doings, business, receipts, disbursemenj if any, orofdepartment, indebtedness <
l 8scrion 57. At the beginning of each Ascal year, the manager of municipal lighting shall furnish to the mayor selectmen l municipal light board, if any, an estimate of the income from sales of gas and electricity to private consumers during the ensuing l al year, and of the expense of the plant during said year, meaning the gross expenses of operation, maintenance and repair, the. l erest en the bonds, notes or certlocates of indebtedness issued to pay for the plant, an amount for depreciation equal to three . I
- cent cf the cost of the plant exclusive of land and any water power appurtenant thereto, or such smaller or larger amount as . ;
department may approve, the requirements of the sinking fund or debt incurred for the plant, and the loss,if any,in the opera- l t of the plant during the preceding year, and of the costs as denned in section 58, of the gas and electricity to be used by .the ,j
- m. Th3 town shall include in its annual appropriations a,nd in the tax levy not less than the estimated cost of the gas and <
- tdeity to be used by the town as above denned and estimated. By cost of the plant is intended the total amount expended j
- thi plint to the beginning of the fiscal year for the purpose of establishing, purchasing, extending or enlarging the same. By !
t in cperation is intended the difference between the actual income from private consumers plus the appropriations for niainte-ice f:r the preceding Ascal year and the actual expense of the plant, reckoned as above for that year in case such expensas: J
-eeded the amount of such income and appropriation. The income from sales and the, money appropriated as aforesaid shall' ;
used to pay the annual expense of the plant, denned as above for the Secal year, except that no part of the sum therein included ! depreciation shall be used for any other purpose than renewais in excess of ordinary repaire extensions reconstruction, enlarge. . I nts end additions. The surplus if any, of said annual allowances for depreciation after making the above payments shall be ' l
- it as a separate fund and used for renewals other than ordinary repairs, extensions, reconstructions, enlargements and additions -
suceseding years; and no debt shall be incurred under section forty for any extension, reconstruction or enlarpments of the plant excess cf the amount needed therefor in addition to the amount then on hand in said depreciation fund. said depreciation fund 4
- ill be kept and managed by the town treasurer as a separate fund, subject to appropriation by the city council or selectmen or i nlcipil light board, if any, for the foregoing purpose. So much of said fund as the department anny from time to time approve 'l y alas be used to pay notes, bonds or certificates of indebtedness issued to pay for the cost of reconstruction or renewals in eteess i ordiatry repairs, when such notes bonds or certificates of indebtedness become due. All appropriations for the plant shall be ,i nr for the annual expense denned as above, or for extensions, reconstruction, enlargements or additions; and no appropriation
all be used for any purpose other than that stated in the vote making the same. No bonds, notes or certiacates of indebtedness j S11 be issued by a town for the annual expenses as defined in this section. Sacrion 63. A town manufacturing or selling gas or electrielty for lighting shall keep records of its work and doings at its ' nufteturing station, and in respect to its distributing plant, as may be required by the department. It shall install and main. , n apptratus, satisfactory to the department, for the measurement and recording of the output of gas and electricity, and shall l I the sIme by meter to private consumers when required by the department, and,if required by it, shall measure all gas or elec- j
- ity consumed by the town. The books, accounts and returns shall be made and kept in a form prescribed by H department. '
i,' i the secounts shall be closed annually on the last day of the Ascal year of such town, and a balance sheet of tnat date shaU 1 i taken therefrom and included in the return to the department. The mayor, selectmen or municipal light board and manager !
- tll,' ct any time, on request, submit said books and accounts to the inspection of the department and furnish any statement or ormatien required by it relative to the condition management and operation of said business. The department shau, in its aual report, describe the operatlea of the several, municipal plants with such detail as may be necessary to disclose the ana'.elal tdition and results of each plant; and shall state what towns, if any, operating a plant have failed to comply with this chapter, d r,thit towns if any are se or electricity with the approval of the department at less than cost. The mayor, or selectmen,
, municipal light board if any, annually, on or before such date as the department 6xes, make a return to the department,
.the preceding fiscal y, ear, signed and sworn to by the mayor, or by a majority of the selectmen or munlel light board, if any, I by the manager, stating the financial condition of said business, the amount of authorized and existing in btedness, a statement
' inesmo and expenses in such detail as the department may require, and a list of its salaried omeers and the salary paid to each.
'e m:ytr, the selectmen or the municipal light board may direct any additional returns to be made at such time and in such detail
%.ha,eq they may order. Any omeer of a town manufacturing or selling gas or electrielty for lighting who being required by this ,
ti:n to make an annual return to the department, neglects to make such annual return shall, for the Arst afteen days or portion treof during which such neglect continues, forfeit Ave dollars a day; for the second Afteen days or any portion thereof, ten dollars lay; cnd for each day thereafter not mote than afteen dollars a day. Any such emeer who unreasonably refuses or neglects to
. 'ke such return shall, in addition thereto, forfelt not more than Ave hundred dollars. If a return is defective or appears to be oneous, the department shall notify the omeer to amend it within Afteen days. Any such oscer who negleets to amend said urn within the time specided, when notifled to do so, shall forfeit Afteen dollars for each day during which such neglect continues, t ferfeitures incurred under this section may be recovered by an information in equity brought in the supreme judicial court by ictt rney general, at the relation of the department, and when so recovered shall be paid to the commonwealth.
SectioN 69. The supreme judicial court for the county where the town is attuated shall have jurisdiction on petition of the
, nrtment or of twenty taxable inhabitants of the town to compel the fixing of prices by the town in compliance with sectiona ty.stven and fifty.elght, to prevent any town from purchasing, operating or selling a gas or electric plant in violation of any
" nisitn of this chapter, and generally to enforce compliance with the terms and provisions thereof relative to the manufacturo distribution of gas or electrielty by a town.
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