ML20209G064
| ML20209G064 | |
| Person / Time | |
|---|---|
| Site: | Millstone, Seabrook, 05000000 |
| Issue date: | 12/31/1984 |
| From: | Eichorn J EASTERN UTILITIES ASSOCIATES |
| To: | |
| Shared Package | |
| ML20133L294 | List: |
| References | |
| NUDOCS 8508120619 | |
| Download: ML20209G064 (280) | |
Text
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- Last year also marked the third consecutive To Our Sharchold:rs: year-end that the EUA System had no short-term bank debt, while the earned return on l
I am pleased to report that 1984 was another common equity rose for the fifth consecutive l successful year for Eastern Utilities Associ- year, from 16.2% in 1983 to 16.5% in 1984. ates. Year-end statistics reflect the continua- Along with EUA's market performance came tion of financial growth which shows no signs improved credit quality ratings. Standard & l of abating. Once again we finished the year Poor's Corporation raised its ratings on the I with more kilowatthour cales of electricity, debt securities of EUA's subsidiaries, Eastern with increased consolidated net income, and Edison Company and Blackstone Valley Elec-with greater earnings per share. As a result, tric Company, from BBB to BBB + . While I am for the third consecutive year your quarterly pleased with this improvement, I believe it I dividend was increased, this time from 45.5c continues to be in the best interest of EUA's per share to 48.Sc per share. I am confident shareholders and customers to maintain credit I that we can look forward to further improve- quality ratings in the A + /AA range. We will l ment in 1985. continue our efforts to reach that level. A healthier national and regional economy In December 1983 our wholesale generation has stimulated an increase in the use of elec- and transmission company, Montaup Electric tricity in our service area, the rate of unem- Company, received permission from the Fed-ployment for both Massachusetts and Rhode eral Energy Regulatory Commission (FERC) to Island is significantly less than the national implement a $15 million rate increase. This average. The rise in kilowatthour sales vol- increase remained in effect throughout 1984 ume, together with higher electric rates in and had a major impact on our earnings, effect during 1984, resulted in increased FERC, which regulates approximately 78% of earnings. Consolidated net income jumped System revenues, permits utilities to use for 18.5% to a record $30.1 million from 1983's rate-setting purposes a forward-looking test
$25.4 million. Earn- year, allows up to 50% of a utility's construc- " Consolidated net ings per average tion work in progress to be included in rate income jumped common share in- base, and traditionally has permitted recovery creased to $2.85, de- of investments in cancelled construction 18.5% to a record $30.1 million from spite an additional projects.
1983's $25.4 million. 1.5 million average Increased kilowatthour sales and a slowing Earnings per aver- common shares out- of escalating costs enabled us to defer seeking cge common share standing. rate increases for the System's two retail oper-increased to $2.85, Our successful per- ating subsidiaries. despite an addi- f rmance drew favor- Improved cash flow last year, together with tional 1.5 million able attention from lower financing requirements, enabled EUA c.verage common investors. The aver- to reduce its level of external financing to i chares outstanding.,, ge m nthly volume $55.9 million, just about half the amount of EUA shares traded { required in 1983. At present we do not feelit increased substantially from 214,000 shares in ] 4 1983 to 365,000 shares in 1984. EUA shares ended 1984 at $18. That price was two percent above book value and marked the first time in eight years that the year-end closing market price exceeded book l value. l l 1 2 1 l
l ._- will be necessary to raise any permanent capi- I am optimistic that 1985 will see a further talin 1985 and we do not anticipate the need improvement in the economic climate within to issue additional common shares for the our region. The Trustees and management foreseeable future, of your Association look to the future with except through the confidence. We intend to continue to meet "At present we do dividend reinvest- the needs of both our customers and not feelit will be ment P l an. shareholders. necessary to raise EUA's support of any permanent capi-nuclear power spans l talin 1985, and we do not anticipate the im st three decades. Energy produced by need to issue addi-the System's inter-tional common John E G. Eichorn, Jr. ests m five of the I shares for the fore-seeable future...,, nuclear generating units now on-line in New England has served our customers well. l l We remain committed to using economical ! and reliable sources of nuclear power to fill
- base load capacity needs and further displace i high-cost oil. Construction costs associated Ld I with Millstone No. 3 and Seabrook No.1 4
l nuclear units are being closely rnonitored. Eco- l nomic analysis of these two projects continues - l l to show long-term benefits to our rate-payers. . I Commercial operation for Millstone No. 3, a - unit now 93% complete,is scheduled for May 1986. Through Montaup, we have a 4% owner- i ship in this unit. ( Seabrook No.1 unit, now 83% complete, is targeted for operation in late 1986. Montaup owns 2.9% of this unit. A series of unsettling g N'
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events in 1984 prompted the joint owners i l to change the administration of the unit's e construction and ultimate operation. Respon-sibility has been transferred from the lead par-ticipant, Public Service Company of New Hampshire, to a new corporate entity, New Hampshire Yankee Corporation, which is being given direction by a seven-member Executive Committee representing the sixteen joint owners. I have been Chairman of the Executive Committee since January 1,1985. Our immediate task is to monitor the expendi-ture of funds and to assure that the quality of construction meets all regulatory require-ments. Beyond that, our purpose is to bring the project to a safe and cost-effective comple-tion as soon as possible. 3 1
, - arnings Increase; - Investor confidence in t Review of Operations Dividend Raised; 53 00 the overallimprovement
- Market Pnce m the System's financial Improves - Consolidated viability also resulted in
) Net Income for 1984 2 25 improvement in the mar-increased by $4.7 million ket value of EUA common to $30.1 million. This was shares. Average monthly an increase of 18.5% over 150 trading volume increased , 1983's $25.4 million. The substantially in 1984. The improvement in Consoli- closing market price of i dated Net Income ena- $18 at year-end was 102% j bled the System's earned 35 of book value. This marks returri on average com- the first time in eight mon equity to increase to years that the market 16.5%. Even though there 0 80 81 82 83 84 value of EUA common were approximately 1.5 shares exceeded their million or 17% additional Earnings and Dividends: book value at year-end. average common shares a Earnings A detailed discussion of outstanding, the growth E Dividends kwh sales growth and Earnings have continu-ously improved since rate case activity is pro-vided later in this report. 1980 and achieved a Consolidated Net high in 1984. Dividends In addition, a companson were increased for the of Operating Revenues, Income increased to third consecutive year. kwh Sales and Expenses
$30.1 million. Divi. is included in " Manage-dend payments ment's Discussion and Analysis of Financial Con-increased for third dition and Results of consecutive year. Operations" on page 20.
in earnings per average etai1 Sales Increase - common share was 1.8%. Retail sales of elec-Earnings per average 18 0 % tricity rose 1.9% common share were from 3.1 to 3.2 billion
$2.85, $0.05 over 1983. kilowatthours in 1984.
The continued improve" 13.5 Improved national and ment in Consolidated Net local business conditions Income can be attributed combined to boost indus-to the carryover effect of trial sales by 5.7%. 90 Weather conditions play rate relief granted in late 1983 and, to a lesser an important role in extent, to a 2.4% increase determining the amount in total kilowatthour (kwh) 45 of residential and com-sales resulting from a mercial kilowatthour strong economy within sales each year. Warmer-our service territory- 0 80 81 82 83 84 than-normal winter tem-Once again we were perature patterns, partic-able to meet our stated Return on Average ularly during the last goal of providing dividend common Equity: quarter, tempered our increases at regular inter. Our continuously customers' use of electric-vals. The quarterly divi. Improving return on ity for central heating and dend rate was increased common equity is a auxiliary electric-heating
II'Ct3 " I O' C0" tin-from 45.56 per share to devices. Also, summer ue a rengthening of 48.54 per share, effective " *"
- temperatures were signifi-
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with the May 1984 divi- cantly cooler than those dend. This was the third of the prior year, which consecutive year in which reduced the demand for our dividend was increased. r l l 4
air-conditioning. How- - year, allows e. portion of redit Ratings ever, strong economic 1.40 btibon kwh construction work in Raised; 1985 activity in the System's progress (CWIP) in rate External Financing service territories more base and has historically Requirements I *inimal - than offset the impact of 1.15 permitted the recovery of In December 1984, Stan-these abnormal weather investments associated dard & Poor's Corpora-variables and, as a result, with the abandonment of tion, in recognition of the sales to residential and ,gg construction projects. continued strengthening commercial customers, In December 1983 FERC of our financial position, which account for 73% of allowed Montaup Electric raised its credit quahty total retail sales, rose Company to implement a ratmgs on the debt secu-about 1 %. " $15 million rate increase rities of Eastern Edison which included approxi- and Blackstone from BBB nereased Sales Delays mately $103 million of to BBB + . We are pleased
.40 80 81 82 83 84 CWIP in rate base. with this improved rat-I Need For RetailRate Relief- The trend of Primary Sales by In December 1984, FERC issued an order ing, but continue our efforts to obtain credit rapidly escalating costs of providing electric service Customer class: allowing Montaup to quality ratings in the abated during 1984, 5 Residential implement a $17.6 million A + /AA range.
E commercial rate increase beginning The combination of a reflecting lower inflation, d"' relatively stable fuel ' h"th prices, a period of higher increased kilowatthour Table of Recent Rate Relief Granted _. employment and sales in 1984 reflected a Annual Bevenue (000's) E f f *'*"* R**"" " increase i electncity sales. continuation of the Requested Granted Equity These factors made it strong economic growth Ju[disdiction Da te_ unnecessary for the Sys- in our service territories. Federal (FERC) $18,100 $16,800
- 1/09/83 18.00 %
tem to seek rate relief in Federal (FERC) 17,400 15,000* 12/28/83 16 20 % base rates in 1984, for Federal (FERC) 17,600 17,600* 6/05/85 16.75 % Rhode Island 5,900 1,800 11/10/83 15.20 % Massachusett_s_ 6,200 1_00 1/31/84 15.25 %
- Granted on a subject to refund basis Improved economic conditions, in June 1985. In this 50% increase in internal increased electricity request about $170 cash generation; utiliza-milli n f CWIP was tion of the remaining $19 sales delays need for included in rate base. million in proceeds from r; tall rate relief. The order was in a tax-exempt financing response to Montaup's completed in 1983; and Blackstone Valley Electric November 1984 rate lower cash construction Company and Eastern filing. requirements enabled the Edison Company, the Sys- System to reduce the tem's two retail subsid- level of external financ-iary companies. ing in 1984 to $55.9 mil-Responsive Federal lion. This amount was Energy Regulatory about half the amount required in 1983.
R esponsive Wholesale Regula-tion Plays Impor-Federal Commission regula. The continuation of a i i tant Role; FERC Rate tion continues to high level of shareholder Request Approved- contribute to Sys- participation in our Divi-Responsive regulation by tem's financial dend Reinvestment and the Federal Energy Regu- Common Share Purchase latory Commission (FERC) health. Plan provided $7.8 million relative to the System's of additional common wholesale electric busi- equity in 1984. In addi-ness continues to con-- tion, $1.6 million of com-l tubute to our financial mon equity was obtained health. FERC regulates from our Employees' Sav-approximately 78% of ings and Employees' l System revenues and Share Ownership Plans. generally pursues a pro-gressive philosophy in rate making. FERC uses a forward-looking test 5
Eastern Edison com- Completion of the - Construction require-plated a private place- above financings has m ments for the five-year ment of $40 million of enabled the System to period 1985-1989, are cut-first mortgage bonds in end the year with no rently projected at $185.0 September. The new short-term debt for the 45 million including the cur-bonds had a 13.9% inter- third consecutive year, rent estimate of $82 mil-est rate for the $21 mil- Substantially lower lion for 1985. The planned lion which mature in cash construction 3g completion of the Mill-1987. The remaining $19 requirements in 1985, stone and Seabrook No.1 million mature in 1988 together with a further nuclear units in 1986 and have an interest rate increase in internal cash will mean a substantial of 14.2%. " generation, should ena- reduction in construction The completion of this ble the System to avoid expenditures for the bal-bond financing enabled having to raise any per- ance of the five-year Eastern Edison to repay a manent capital in 1985. o ao 81 82 83 84 period ending in 1989.
$10 million bank term- It is anticipated that loan and retire $25.8 mil- our Dividend Reinvest. Internally Generated Nuclear Commitment lion of first mortgage ment and Common Share Funds: Continues bonds that were close to Purchase, Employees, The dramatic improve. EUA's support of nuclear ment in internally gen- p wer sp ns alm st their mandatory retire- Savings and Employees, erated funds continued three decades. Energy ment date. The remain- Share Ownership Plans during 1984. By 1986, ing proceeds were will provide approxi- produced by the System's we expect to meet all temporarily mvested by mately $10 milhon. Any interests in five of the of our cash construction nuclear generating units Eastern Edison and had additional external funds requirements with been partially utilized by which may be required in internally generated nw n-line in New year-end. 1985 will come from funds. England has served to Blackstone successfully short-term bank loans. lessen the effect of high completed a $6.5 million il prices and aided in low cost, tax-exempt onstruction Expen- "9 #"
- bond issue in December ditures Declining - 11 st of providing elec-1984. Blackstone's issue 8" The System's 1984 has a 30-year maturity construction expendi- e mma n commM with a floating interest tures were $95.2 million, using economical and rate that is adjusted each m sm s of down from $103.3 million week. A January 1985 in 1983. Generation- nuclear power to fill base related projects I d capacity needs and
- amounted to $78.2 mil- further displace high-cost H n, with $20 2 milhon oil. Costs associated with Credit ratings the Millstone No. 3 and and $31.6 million, respec-raised. System again tively, spent on EUA's nuckar portion of the Seabrook units are closely moni-cnds year with no nd Minstone nuclear tored. Economic analyses short-term debt. units through Montaup of these two projects con-Electric Company, the tinue to reveallong-term interest rate on this issue System's generation and benefits to our ratepayers.
was just over 5%. This financing was under- transmission subsidiary. Millstone No. 3 Unit 93% In addition, $19.7 million Complete taken to fmance the reha- was expended to com-bilitation of Blackstone's Construction of the 1150-plete the conversion of megawatt Millstone No. 88-year-old hydroelectric Montaup's Somerset Sta-generating plant in Paw- 3 Unit progressed satis-tion from oil to coal, factorily during 1984. By tucket, Rhode Island. while $6.7 nullion was spent on other genera-tion related projects. Expenditures for trans-mission and distribution system upgrading and for general plant improve-ments amounted to $17.0 million. 6
year-end, the unit was ultimately to a dramatic Throughout New 93% complete. Commer- change in the arrange- England, the feasibility cial service is scheduled ments for completing the of completing Seabrook for May 1986. Pre-opera- project. In our opinion No.1 is receiving careful tional testing is proceed- these actions also have scrutiny by regulatory ing at full scale and fuel caused the Seabrook No. agencies and state offi-loading is expected to 2 Unit to be effectively cials. A consultant begin November 1,1985. cancelled. retained by the New In August 1984, North- In May 1984, the joint England governors east Utilities, the princi- owners approved a com- reported in May of 1984 pal owner, announced prehensive plan whereby that the completion of that the cost to complete each participant agreed the Seabrook No.1 Unit Millstone No. 3 could rise to prearrange for its pro was economically viable. 6% to 10% above the rata share of cash neces- Seabrook Regulatory then-current estimate sary to complete the Sea- Pr ceedings of $3.5 billion. Using the brook No.1 Unit. The Several state pubh,c util-10% figure, the new plan provides for alterna- ity commissions have completion cost wou!d tive financing arrange-convened hearings to be $3.9 billion, This ments. Montaup is investigate various eco-increases Montaup's cash arranging a standby let-construction costs over ter of credit to guarantee n mjc and financial mat-ters mvolving Seabrook the next two years by $14 financing for its 2.9% No.1. Decisions by the
- million and has been share of Unit No.1. Vermont and Connecticut $120 nullion reflected in our construc- In June 1984, the lomt agencies support its tion program. Montaup owners unanimously expeditious completion.
has a 4% interest in the approved, as a goal, the Hearings by the New 90 unit. phased transfer of Hampshire Public Utih,- responsibility for the con- &s Commission aM the Seabrook No.1 Unit 83% struction and operation Complete Massachusetts Depart-of Seabrook to a new ment f Public Utilities 60 Nineteen eighty-four was entity to be known ulti-an unsettled year for the mately as the New Seabrook Project. On Hampshire Yankee Cor-30 March 1,1984, Public poration. This transfer is Service Company of New subject to certain regula-Hampshire (PSNH), the tory approvals. A seven-0 74 79 84 dE EU' . member Executive Con - announced a dramatic mittee of joint owners increase in the estimated was also created to moni-Construction cash cost to complete the Expenditures: tor the expenditure of two Seabrook Units, as EUA System construc. funds and the progress of tion expenditures well as deferred in-ser- construction of Seabrook. declined in 1984 and vice dates. During April At the end of 1984, Sea-should continue to 1984, construction on the brook No. I was approxi-decline for the next 1150 megawatt Seabrook mately 83% complete. several years. No.1 Unit was substan- The current estimate'to tially reduced and con- complete construction of struction on Seabrook the unit is $800 million No. 2 was terminated, as of cash. This reflects a a result of PSNH's mabil- return to full construction ity to meet its construc- in the second quarter of tion payments. These 1985 The joint owners events combined to trig-have adopted for finance ger a series of joint purposes a budget of $1.0 owner actions which led billion of cash to com- ; plete. This includes a ) contingency believed appropriate to achieve i the target commercial operating date of late 1986. i l l 7 4
l are expected to be com- Hydroelectric Plant rate (OCA), about one- , pleted early in 1985. Reactivated third of this fuel cost sav-Maine's Public Utilities Reactivation of Black- .ing was retained by Mon- l Commission does not stone's 88 year-old taup to fund the cost of support continued partic- hydroelectric generating the conversion. After pro-ipation by Maine utilities plant in Pawtucket, Rhode viding for taxes, the , and has attempted to Island was substantially remainder, more than $8 l order the sale of the completed in 1984. The million, were savings ! Maine utilities ownership new, fully automatic, tur- realized by customers. I in Seabrook No. I and bine/ generators became When the coal conversion their disengagement commercially operable in from the project. Several December 1984. I g gg Coal Conversion Program Coal conversion ; action to seek, if neces-mp eted cornpleted. Fuel sav-The major construction sary, court enforcement for the conversion of two ings for 1984 were of the Maine utilities contractual obligation un s Montaup's $25 nu.llton. under the Seabrook Joint S merset station from oil Owners Agreement. to lower-cost domestic has been fully paid for coal has been completed. through OCA collection, ydro Quebec Share The station is now burn- all fuel cost savings will ing coal but retains the be passed on to H Increased New England utili-
-In 1984, bihty to use oil as a fuel tooo megawatts customers.
ties, through the New if price and national pol-England Power Pool, i Y Permit- alanced Load Strat-reached an agreement in uH coal bumbg in ggg egy - EUA contin-principle to expand their un s, utdizmg ues to pursue a state-of-the-art pollution prior arrangement to balanced and integrated
# " " supply-side and demand-import more low-cost menced m.9"5 men ,acom-mid-1984, 800 Canadian hydroelectric side strategy to meet p year ahead of schedule. future loads. Supply-side Phase 1, starting in Included as part of the _ goals reflect decreased 1986, calls for the deliv- p llution control equip- 700 reliance on oil as a fuel l ery of three billion ment m a new w ste- and increased depen- I kilowatthours of hydro- water treatment plant. dence on low-cost coal. l electricity annually to two electrostatic precipi- 600 80 81 82 83 84 hydro and nuclear power tators, mbuilt ash-han-New England. Under to establish an economic Phase 2, an additional dlitig systems, a coal system capability / and reliable energy mix.
dust suppmssmn system seven billion kilowatt- Peak: Commitments to new hours will be delivered and an extensive noise a system capability capacity are prudently annually, starting in 1991. abatqment system. Tests E Reserve Margin divided among a variety EUA's share under have mdicated that the s Peak Load of sources, minimizing station meets or exceeds Our reserve margin has operating risks and Phase 1 is about 150 mil-lion kilowatthours per 11 pplicable state and rema ed relatively sta-financial exposure. l year; under Phase 2, '* *'"I""i""**" Demand-side options standards. years and is expected l another 350 million to remain that way include load manage-um ng coal win aHow kilowatthours annually through 1992. ment, conservation, is added. EUA to pass on to its cus- cogeneration and small Hydro Quebec energy t mers annual savings power producers. These will further reduce based on the cost differ- alternatives moderate our reliance on higher- ential between oil and load growth, provide priced oil. coal. During 1984- sources of renewable approximately 400,000 generation and increase tons of coal were burned the overall efficiency at Somerset, the equiva- of capital and fuel lent of approximately resources, and form an 1,600,000 barrels of oil. The fuel cost savings were about $25 million. Through the implemen-tation of Montaup's Oil Conservation Adjustment 8 A
- integral part of EUA's - -
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- ' ~' : ' were held m 1984. Sys-overall power-pla nning 4135 mwh tem executives met with process. 3g elected officials and bust-Progress in reachmg a 3.811 mwh ness and industrial lead-more desirable energy 3.5f;0 mwh ers to discuss key issues.
mix is evidenced by These meetings will be the fact that we have formalized m 1985 with reduced our dependence the advent of "Commu-on oil from 78% in 1982 m m nity Leader Round-to 60% in 1984, while tables." which will build increasing the use of on the present founda-lower-cost coal from 0% tion for ongoing dialogue to 29% in the same time - between your System period. Companies and influen-The nuclear component tial decision makers.
- Educational Services of our 1984 energy mix was 11%, down from 22% and Speakers Club pro-in 1982. The reduction is m , grams grew in 1984. ,
i principally the result of Thousands of elementary the nearly year-long un- es% students took part in availability of the Pilgrim . electric safety programs. No.1 nuclear unit which ~ 33% st% - 33 % Additional thousands was out of service for 82 84 89 benefited from various scheduled maintenance educational films and and for retrofitting Energy Mix: Supervisory Control and publications distnbuted required by the Nuclear mwh- megawatt hours Data Acquisition system to schools. Regulatory Commission. m Oil by the System Operations The educational pro-It is expected that 1985's a Coal center. gram was particularly energy mix will see oil a Nuclear System Operators have enhanced by the forma-further decreasing to f,IIY ne of the most advanced tion of a Teachers Advi-3g84, coal increased about 41% of the total- to 29% As depicted for systems in the country to sory Panel to provide with a corresponding 1989, our goal is to continuously monitor and increase in nuclear and diversify our energy mix control the transmission coal generation. so that we will not be of electricity to EUA's dependent on any single Community affairs, . By 1989, with the adds- customers. tion of new nuclear units fuel for our generation Plans are to expand educational services and hydro-electric power, needs. and enhance the system and speakers Club we expect our energy in 1985 and include a activities expanded. mix to be diversified to data-link with Rhode the extent that we are Island, Eastern Massa-not largely dependent on chusetts and Vermont guidance from profes-any one fuel source. See Energy Control (REM. sional educators. EUA VEC), one of the regional also published a compre-Energy Mix Chart. control centers of the hensive Educational Ser-New England Power vices Catalogue which ear in Review - desenbes the System's Ongoing efforts to Pool, of which EUA is a member. programs and offers expand and fine The data-link mtercon- them to schools. tune customer oriented programs continued nection between REM-throughout 1984. Focus VEC and EUA's System ! was centered on the areas Operations will allow for l of: central operations, increased accuracy and l community relations and speed of transmitted conservation. information on the status of EUA's generation and Central Operations high-voltage transmis-System Expansion sion netweik. i October 1984 marked one year of on-line use of the Commurnty Relations - Communications a key to understandmg. Informal meetings with l commmunity leaders l 9
customers. Eastern Edi-Ravenue son arranged for energy audits and, through a neighborhood group-bid O 31Sc 14sidential process with local con-tractors, also arranged 27 3c Comrnercial for high-quality, lower-19 ce Industnai cost insda@n wd. 12.7c other Xecutive Vice Presi-dent Elected - 8 9c Other Electne Utilitms Donald G. Pardus, Vice President of the Expense Association since June 19'/9, was elected an Executive Vice President Fuei at the December 3,1984 14 Ce other Operation and M.untenance meeting of the Board of , u 4c Purchased Power Trustees. Mr. Pardus G42se 10 7e Interest and Preferred Dividends as Chief Financial Officer M* h" and Treasurer. 3 9c Depreciation and Arnortization Two labor contracts I 7.8e Ea r ning s negotiated in 1983 con-tinued in effect through Revenue / Expense The employees' volun. 1984 and will not expire Dollar: teer Speakers Club until the fall of 1985 and Fuel and Purchased responded to a record the spring of 1987. A Power were again our number of requests in umon representation largest expense items. 1984. Members election was held in Cost control measures Blackstone. Since the allowed us to keep th addressed business and commumtY leaders, stu. majority of the employees increase in Other Opera- voted against having tion and Maintenance dents and social groups. They discussed energy union representation, we expenses at a manage. able level, issues, conservation and continue to state that electnc safety. As re than 80% of the always, they cerved EUA System's employees admirably as good-will are not represented by ambassadors. ny bargaining unit. The total number of Conservation efforts EUA System employees continue. at year-end was 1,075, up In Rhode Island, Black- 4.8% from the end of stone continued a multi- l 1983 - but still substan- i part program fostering tially below the peak the conservation of employment level of 1,250 energy by encouraging employees established in the use of weatherization the early 1970s. The techniques, as well as increase in the number of the use of efficient elec- employees largely tric-heating systems. reflects an increasing Free weatherization kits demand for more special-were given to customers ized skills needed to pro-who received a residen- vide cost-effective tial energy-conservation services to our audtt. customers. In Massachusetts, Eastern Edison con-ducted an attic insulation program for residential 10 l
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i l Advanced technology. It's appropriate that an area which was the birthplace of the Industrial l Revolution in America should also be home to a burgeoning advanced-technology industry. l Over a recent five-year period, there was a 15 percent increase in the number of employees in this field. The companies manufacture such products as fiber optics, electric-conduction components, modems and sensitive thermostat i devices. There are also computer centers for major corporations. New Englanders build on the past. When busi-ness and industry grow, more work space is , required. Within the EUA System territory, developers often find space by revitalizing fac-tory complexes - updating the facility while keeping the historic charm - and creating new ! $ata p $ssing con e$ " ' jobs and new opportunities for business.
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gro ingse eUn'du$th. I Where looms once produced fabric, now live y senior citizens. Restaurants now operate in buildings that were warehouses for the mer- ' chant trade. And, in factory complexes where manufacturers turned out an endless variety of products for worldwide trade, specialty stores now attract shoppers. Indeed, there are popu-l lar factory-outlet stores which exist hand-in-I hand with the factories themselves.
- Industrial and retail growth. It's a good time to be doing business. The food-production indus-try-including wholesale bakeries and dairies
-is doing well. In one EUA service area the ;
food-production industry increased electric-j 4 New Englanders energy consumption by 39 percent each year UIIe t res red from 1978 through 1983. The manufacture of i l Victorian house scientific instruments is prospering, using an ! in Fall River, Mass. g average of 13 percent more electricity each year during that same period. The paper, chemical, N i
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L petroleum and rubber businesses also show growth, as does the manufacture of electric l4. k machinery. l 13
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- new housing for a growing population -N' ---r-e' 'b
l ! In another direction, a national company - i looking for a spot to locate its corporate head-l quarters - chose the System area; while one of the nation's largest toy manufacturers plans to build new headquarters here as well. Retail businesses are also booming -due to new malls, mill-outlet stores, retail shops, large department stores and new office space. Retail jobs rose more than 16 percent over a recent five-year period. A place for people to prosper. For business to grow it needs people. And people need to live and prosper in an invigorating environment. The EUA service area embraces New England's heritage - its histoiy, its architecture, its old mills, its cityscapes, its link to the sea, its hold on the land. EUA serves 646,000 residents - with their use of electricity representing one-third of the System's revenue. There's every type of housing -in every area. Mill villages. Picturesque, storybook towns. There are dense urban communities - with established neigh-borhoods. And new " mini-communities" -
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high-rise apartments and condominiums. A. T. Cross Co., uncoln, > There's even a sprinkling of mansions. The ,
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, phony orchestras, theaters, active historical organizations and a highly respected art museum. And throughout the year-but most especially during New England's autumns - i many communities hold festivals and fairs to l celebrate art, craft, feasts and cultures.
Tradition serves new needs. New England mer-chants continue their tradition of being able to serve the changing needs of the marketplace. Mirroring a time when clipper ships glided out of area yards to ply the oceans, there are com-panies which, today, produce sleek boats for the pleasure-craft trade. And, long-established companies prosper as well. There exists a vibrant shoe industry - one that dates to the nineteenth century - which is still an impor-tant component of the area economy. The ser-vice territory is also home to a leading pen-and-pencil company. In an age when the 19-cent pen has become commonplace, this uncommon
- manufacturer dazzles its clientele with presti-i gious writing instruments.
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,' l. l l Stonehill College official -
1 discusses expansion of Easton, Mass. campus with 4 er*e # . an Eastern Edison engineer. , i V V Q l j J. , , l , A The battleship USS Massachusetts, ) 4 - Fall River, Mass. - symbol eNg of our rising tourist industry. 1 16 i
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Confidence. From toys, to shoes, to boats, to pens, to advanced technology - area business-men look ahead with confidence, firmly in the forefront of their fields. It is a confidence that comes from experience - the New England attitude that in old accomplishments lies the foundation for the future. And the EUA System looks ahead with confidence as well - toward a bright future. Pawtucket, R.I., home of the Red Sox Triple-A, International League champion farm team. Y
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ummmmmmmmans Selected Consolklated Financial D:ta Years Ended December 31, 1984 1983 1982 1981 1980 ' On Thousands Except Common Shares and Per Share Amounts) Income Statement Data: ' Operating Revenues $361,325 $302,450 $288,417 $297,931 $244,642 Operating Incorne 46,767 36,537 31,296 28,834 24,115
. Consolidated Net Income 30,053 25,364 16,941 12,437 8,990 Balance Sheet Data:
Plant in Service 394,107 374,132 358,599 348,255 333,812 Construction Work in Progress 283,216 249,700 172,057 109,348 82,308 Gross Utility Plant 677,323 623,832 530,656 457,603 416,120 Accumulated Depreciation 134,077 125,568 117,396 110,163 101,857 Net Utility Plant 543,246 498,264 413,260 347,440 314,263 Total Assets 661,471 585,135 489,259 426,821 390,958 ~ Capitalization: Long-Term Debt 288,876 256,398 199,850 188,464 162,682 Redeemable Preferred Stock 33,240 34,155 34,457 19,906 20,199 Non-Redeemable Preferred Stock 15,079 15,079 15,079 15,079 15,079 Common Equity 191,619 172,327 140,973 109,875 95,424 528,814 477,959 390,359 333,324 293,384 Total Capitalization--. - - - - . . . - . -. _ - _...-.-__ . . - _ _ _ - - - _ - Short-Term Debt 0 0 0 27,100 31,540 . Common Stock Data: - Earnings per Average Common Share 2.85 2.80 2.25 2.03 1.63 - Average Number of Shares Outstanding 10,562,324 9,062,810 7,519,381 6,123,334 5,525,320 Return on Average Common Equity 16.5 % 16.2% 13.5 % 12.1 % 9.5% Market Price - High 18 18 % 14 % 12 % 13 %
- Low 12 % 137/s 11 10 % 10 %
- Year End 18 147/s 14 % 11 % 11 %
Cash Dividends Paid per Share __ ___ _ ._ . _ _ _ . . _1.91 _ _ _ _ _ _1.79 _ _ _ _ _ _1.70 _._.. 1.60 1.60 . I 19
aggggg emmanusumamme Tha tablo b: low sets forth the p:rcent Managementil Discussion cud changes in kwh sales by class of cus-Analysis of Financial Condition t mers for the last two years: and Results of Operations Increase (Decrease) From Prior Years Overview 1984 39g3 , The financial results for 1984 reflect the Residential 0.6% 5.3 % l EUA System's commitment to maintain- Commercial 0.9 5.7 ing the improvement in its financial Industrial 5.7 4.9 strength. Consolidated Net Income for Wholesale 2.6 5.8 1984 increased 18.5% over 1983 and 1983 Other 4.0 (3.6) increased 49.7% over 1982. Earnings per Consolidated 2.4% 3.7% l average common share of $2.85 in 1984 1 increased 1.8% over 1983, while 1983 Expenses increased 24.4% over 1982. These The EUA System's most significant increases in earnings per share are sig- expense items are Fuel and Purchased nificant, considsring the System has Power costs, which comprised about experienced increases in the number of 66.2% of total operating expenses for average common shares outstanding of 1984. Fuel expense for 1984 increased 16.5% and 20.5%, respectively. $36.3 million or 28.4% over 1983, reflect-Recognizing the EUA System's ing the higher net generation require-improved financial position, Standard & ments of the System, while 1983 fuel ! Poor's Corporation raised its credit rat- expense decreased $9.4 million or 6.9% ing on Eastern Edison's and Blackstone's from 1982, as a result of the commence-first mortgage bonds from BBB to BBB + ment during 1983 of burning lower cost in December 1984. coalin place of oil at Montaup's Somer-Operating Revenues 8et plant. Purchased Power-Demand costs increased $4.3 million and $6.8 The table below sets forth estimates of million in 1984 and 1983, respectively, the factors which caused Operating Rev- over prior periods as a result of increases enues to increase during the last two in operating costs at several nuclear years: generating units in which the System has ownership interests or unit con-Increase (Decrease) tracts. Other operation and maintenance From Prior Years (sin mmions) 1984 1983 expenses increased each year primarily as a result of the effects ofinflation on Operating Revenue change labor, materials and other costs. In addi-attributable to: i Recovery of Fuel Costs tion, the increases in other operation 1 S 32.5 $(14.0) and maintenance expenses reflect Effect of Rate Increases 18.1 24.0 j Kwh Sales 3.6 5.7 increased costs related to the burning of l Unit Contracts 4.7 (1.7) coal at the Somerset plant. Allowance For Funds Used During Total $ 583 $ 14=0 Construction (AFUDC) represents a The revenues attributable to fuel costs non-cash element of income. AFUDC are the result of the timely recovery of decreased $2.3 million in 1984 from 1983, such costs through the operation of primarily as a result of the inclusion in adjustment clauses. rate base of increased amounts of con-The estimated effect of rate increases struction work in progress (CWIP), for the periods shown, reflect the billing thereby reducing the base to which the of higher wholesale and retail rates of AFUDC rate is applied and due to the
$16.4 million and $1.7 million, respec- discontinuance during 1984 of accruing tively, in 1984 and $17.1 million and $6.9 AFUDC on our investment in the Sea-million, respectively, in 1983. brook No. 2 nuclear unit - on which con-Kilowatthour sales improved during struction was terminated in March 1984.
1984 as a result of the continued The increase of $8.5 million in 1983 over strengthening of the economy. Weather 1982 reflected increased CWIP levels and conditions also influence kwh sales by was limited somewhat by increased their effect on air conditioning and heat- CWIP in rate base. ing loads. The 1983 summer air condi- Increases in totalinterest expense are tioning season was significantly hotter reflective of the System's continuing than 1984, while the 1983 winter heating need to borrow funds to meet those cash season was colder than normal. requirements of its construction pro-gram which cannot be met with inter-nally generated funds. I 20
Increasts in long-term debt interest Permanent financing during 1984 since 1982 reflect greater amounts of included a $40 million First Mortgage debt outstanding, mainly due to the per- and Collateral Trust Bond issue (which manent funding of short-term debt. (See was used to repay $35.8 million of out-Statement of Capitalization for details). standing debt), a $6.5 million tax-Other Interest Expense decreased $1.6 exempt bond issue and the issuance million from 1983, and decreased $1.1 of 700,582 common shares ($9.4 million) million in 1983 from 1982, primarily as a through the EUA System's Dividend result of reduced levels of short term Reinvestment and Employee Share bor rowings. Ownership Plans. Although inflation has subsided some- The financing completed during 1984 what during 1984 it continues to have an and 1983 enabled the EUA System to end impact on the operation of our System. both years with no short-term bank bor-At the Federallevel, wholesale rate mak- rowings. The ability to maintain reduced ing practices permit a forward looking levels of short-term borrowings will test period which enables us to antici- depend on the System's ability to further pate inflationary increases. The tradi- increase the amount of funds generated tional use of a historical test period for internally. retail rate-making purposes at the state level does not provide us this opportu- - nity. See " Supplementary Information t Report of Management Disclose the Effects of Changing Prices" on page 32 for further financialinforma. The management of Eastern Utilities tion regarding the effects of inflation Associates is responsible for the consoli-using measurement bases developed by dated financial statements and related the Financial Accounting Standards information included in this annual Board. report. The financial statements are prepared in accordance with generally Financial Condition accepted accounting principles appli-The EUA System's need for permanent cable to rate-regulated utilities and capitalis primarily related to the con- include amounts based on the best esti-struction of facilities required to meet mates and judgments of management, the needs of its existing customers and giving appropriate censideration to to meet the future requirements of these materiality. Fina ncial information customers as well as new customers. For included elsewhere in the annual report 1984,1983 and 1982, the EUA System's is consistent with the financial cash construction expenditures (exclud- statements. ing AFUDC), were $73.2 million, $78.9 The EUA System maintains an million and $61.2 million, respectively, accounting system and related system of The System expects cash construction internal controls which are designed to expenditures to decrease to about $59.5 provide reasonable assurance as to the million in 1985 and to continue to decline reliability of financial records and the for the next several years. protection of assets. The System's staff As is customary in the utility industry, ofinternal auditors conducts reviews to cash construction requirements not met maintain the effectiveness of internal with internally generated funds are control procedures. obtained through short-term borrowings Coopers & Lybrand, certified public which are ultimately funded with per- accountants, is engaged to examine and mr.nent capital. In 1984, internally gen- express an opinion on our financial erated funds amounted to $40.9 million, statements. Their examination includes or 55.8% of the cash construction a review of internal controls to the requirements. The remaining cash con- extent required by generally accepted struction requirements were funded auditing standards. with proceeds from a previously corn- The Audit Committee of the Board of pleted financing or with short-term bank Trustees, which consists solely of out-borrowings which were, ultimately, per- side Trustees, meets with management, manently financed. In 1983 and 1982, the internal auditors and Coopers & Lybrand EUA System was able to generate 34.5% to discuss auditing, internal controls and 20.7%, respectively, of its cash con- and financial reporting matters. The struction requirements with internally internal auditors and Coopers & Lybrand generated funds, with the balance com- have free access to the Audit Committee ing from short-term borrowings. The without management present. System expects that in 1985 it will be able to generate internally in excess of 60% of its cash construction requirements. 21 >+- .v .. . - . .
Consolidated Income Statement Years Ended December 31, 1984 1983 1982 (in Thousands Except Numbers of Shares and Per Share Amounts) Operating itevenues $361,325 $ 302,450 $ 288,417 Operating Expenses: Fuel 164,258 127,898 137,308 Purchased Power-Demand 43,902 39,560 32,732 Other Operation 45,639 43,107 40,156 Maintenance 10,764 7,609 7,852 Depreciation and Amortization 14,953 14,571 13,379 Taxes - Other Than Income 13,700 12,950 14,143 Income and Deferred Taxes 21,342 20,218 11,551 Total Operating Expenses 314,558 265,913 257,121 Operating Income 46,767 36,537 31,296 Equity in Earnings of Nuclear Generating Companies 1,428 1,331 1,121 Allowance for Other Funds Used During ! Construction 11,536 12,684 6,657 j Other Income - Net 1,117 751 152 l Income Before Interest Charges- . - _ . - _ - _ _ . _ - - - - - - 60,848 51,303 39,226 Interest Charges: Interest on Long-Term Debt 34,470 29,148 23,760 Other Interest Expense 1,106 2,691 3,764 Allowance for Borrowed Funds Used During Construction (Credit) (10,516) (11,713) (9,203) i Net Interest Charges 25,060 20,126 18,321 i Income After Interest Charges 35,788 31,177 20,905 Preferred Dividends of Subsidiaries 5,735 5,813 3,964 Con _solidat.ed Net. Income __. _ . _ __ _ _ _ _ __ _ _ _S _3 0,0 5_3_ _ _ _$ __ __25,3 6_4_ _$_ _1_6,9_41 Average Common Shares Outstanding __-_-__-._--__-_-_-__-.___---.-___--_-__.______519,381,.--- _ _10,562,324_. __9,062,810 7, _ _ Consolidated Earnings Per Average Common Share $2.80
= = = = = = = = = = _ = = = = = = _ - S2.85_= =. = = = = $235 9$i !*"d8 !- pg= _ Common Sharg= == ___=== === $}.9 g=_=__= $ 1_.79=== $1.7g e-mmmmmmm--mmmmmmmm.
Consolidated Retained Earnings Statement Years Ended December 31, 1984 1983 1982 (in Thousands) Consolidated Retained Earnings - Beginning of Year $39,731 $30,396 $26,137 Consolidated Net Income 30,053 25,364 ?6,941 Total 69,784 55,760 43,078 Dividends Paid - EUA Common Shares 20,057 16,029 12,682 Consolidated Retained Earnings - End of Year
--=========================,727 $49 $39,731 $30,396 -
_ . . . = = - _ = = = - - - - - - - - l rhe acevmpanying notes are an integra> part or the rinanciai statements. i 22
Consolidated Statement of Changes in Financial Position Years Ended December 31, 1984 1983 1982 (la Thousands) Source of Funds Internally Generated: Income After Interest Charges S 35,788 $ 31,177 $ 20,905 Principal Non-Cash Charges (Credits) to Income: Depreciation 12,653 11,618 11,277 Amortization 3,103 3,450 3,223 Deferred Taxes 14,521 10,056 4,694 Investment Tax Credits, Net 5,835 7,635 5,565 Equity in Undistributed Earnings of Nuclear Generating Companies (13) (753) (500) Allowance for Funds Used During Construction (22,052) (24,397) (15,860) Funds from Operations 49,835 38,786 29,304 Proceeds from Oil Conservation Adjustment 16,815 10,314 Less: Dividends Declared: EUA Common Dividends (20,057) (16,029) (12,682) Subsidiary Preferred Dividends (5,735) (5,813) (3,964) Internally Generated Funds _. 40,858 27,258 12,658 ExternalSources: Proceeds from Sale of Common Shares 9,443 22,239 26,975 Proceeds from Sale of Long-Term Debt - Net 66,081 61,019 24,000 ; Proceeds from Sale of Preferred Stock 15,000 I Other - Net 3,602 5,140 2,418 ' Funds from External Sources 79,126 88,398 68,393 i T_otag_op_rce of Fun _ds_-- _ _=__=======_$119,9_8L J}{5,6_g6=__ $__81,051 Application of Funds Construction Expenditures $95,211 $103,309 $ 77,096 Less: Allowance for Funds Used During Construction (22,052) (24,397) (15,860) Cash Construction Expenditures 73,159 78,912 61,236 Decrease in Short-Term Debt 27,100 Retirement of Long-Ta*m Debt 36,925 13,996 Retirement of Preferiu Stock 310 300 300 Increase (Decrease) in Working Capital 39 14,663 (10,454) Other Application- Net 9,551 7,785 2,869 ptal Appycatioqoqunds====_==__==y=.119,984 $11_5,656 _ $ 81.,051 Changes in Counponents of Working Capital
- Cash $ 4,741 $ 264 $ (809)
Accounts Receivable 4,767 10,107 (4,546) Materials and Supplies (1,059) 3,884 3,152 Other Current Assets 435 117 (176) Accounts Payable (5,856) 5,711 (7,331) Accrued Taxes 2,572 (3,690) (73) Other Current Liabilities (5,561) (1,730) (671) Incyeasp (Dycrqase) in Working Capital _ __ _ _ $___39_._ .$_14_,663_ _$ (10,454)
*(Excluding Short Term Debt. Current Deferred Taxes and Redeemable Preferred Stock Sinking Fund Requirement)
The accompanying notes are an integralpart of the financialstatements. 23
Consolidated Balance Sineet December 31, 1984 1983 (in Thousands) Assets Utility Plant and OtherInvestments: Utility Plant In Service $394,107 $374,132 Less Accumulated Provision for Depreciation 134,077 125,568
. Net Utility Plant in Service 260,030 248,564 Construction Work in Progress 283,216 249,700 Net Utility Plant 543,246 498,264 Nonutility Property- Net 892 901 Investments in Nuclear Generating Companies D,152 9,139 Other Investments (at cost) 69 69 Total Utihty Plant and Other Investments 553,359 508,373 Current Assets:
Cash and Temporary Cash Investments 5,305 564 Accounts Receivable: Customers, Less Allowance for Doubtful Accounts of $635,600 and $569,400, respectively 34,187 30,831 Accrued Unbilled Revenues 11,859 10,801 Other 960 608 Materials and Supplies (at average cost): Fuel 11,600 12,899 Plant Materials and Operating Supplies 5,893 5,653 Other Current Assets 823 387 Total Current Assets 70,627 61,743
' Deferred Debits:
Unamortized Debt Expense 5,853 5,734 Extraordinary Property Losses (Note 1) 25,294 7,187 Other Deferred Debits 6,338 2,098 Total Deferred Debits 37,485 15,019 b z"I:^ssets_===
- = = = = = = == = = = = === _ _w - == _ J6_6y71 . =_ $58_5,{35
=
Liabilities and Capitalisation Capitalization: Common Equity $191,619 $172,327 Non-Redeemable Preferred Stock of Subsidiaries 15,079 15.079 Redeemable Preferred Stock of Subsidiaries-Net 33,240 34,155 Long-Term Debt - Net 288,876 256,398 Total Capitalization 528,814 477,959 Current Liabilities: Long-Term Debt Due Within One Year 1,125 4,458 Accounts Payable 26,011 20,154 Redeemable Preferred Stock Sinkmg Fund Requirement 856 309 Customer Deposits 1,837 1,799 Taxes Accrued 4,659 7,231 Deferred Taxes 3,046 3.240 Interest Accrued 9,982 5,749 Other Current Liabilities 4,828 3,537 Total Current Liabilities 52,344 46,477 Deferred Credits: Unamortized Investment Credit 27,089 21,254 Other Deferred Credits 951 104 Total Deferred Credits 28,040 21,358 Accumulated Deferred Taxes 52,273 39,341 Commitments and Contingencie_s (N_ote I)_ __ _ __ _ Total Liabilities and Capitalization $661_,47_1 _ _$5854. 35 The accompanying notes are an integralpart of the fmancial statements. 24 i .. .
r-Consolidated Statement of Capitalization Decembet 31, (Dollar Amounts in Thousands) 1984 1983 Eastern Utilities Associates: Common Shares:
. $5 par value, authorized 12,000,000 shares, outstanding, 10,892,886 shares in 1984 and 10,192,304 shares in 1983 $ 54,464 $ 50,962 Other Paid-In Capital 89,345 83,406 Common Shares Expense (1,917) (1,772)
Retained Earnings 49,727 39,731 Total Common Equity 191.619 36.2 % 172,327 36.1 % Preferred Stock of Subsidiaries: Non-Redeemable Preferred: Blackstone Valley Electric Company: 4.25%, $100 par value 35,000 shares (1) 3,500 3,500 5.60%, $100 par value 25,000 shares (1) 2,500 2,500 Premium 129 129 Eastern Edison Company:
' 4.64%, $100 par value 60,000 shares (1) 6,000 6,000 8.32%, $100 par value 30,000 shares (1) 3,000 3,000 Expense, Net of Premium (50) (50) 15,079 2.9 15,079 3.2 Redeemable Preferred:
Eastern Edison Company: 13.25%, $100 par value 150,000 shares (1) 15,000 15,000 13.60%, $100 par value (2) 4,490 4,800 15.48%, $100 par value 150,000 shares (1) 15,000 15,000 Expense, Net of Premium (327) (331) Sinking Fund Requirement Due Within One Year (923) ' (314) 33,240 6.3 34,155 7.1 Long-Term Debt: Eastern Utilities Associates: Senior Notes 10%% due 1999 21,375 22,500 EUA Service Corporation: Notes Payable (Various Maturities at Money Market rates) 2,000 2,000 Blackstone Valley Electric Company: First Mortgage Bonds: 14%% due 1995 (Series A)- 30,000 30,000 Variable Rate Demand Bonds due 2014 6,500 Eastern Edison Company: First Mortgage and Collateral Trust Bonds: 3%% due 1985 6,000 12% due 1985 (second series) 19,800 4%% due 1987 3,000 3,000 13.9% due 1987 (second series) 10,000 13.9% due 1987 (third series) 11,000 14.2% due 1988 (second series) 19,000 4%% due 1988 3,000 3,000 14%% due 1990 15,000 15,000 17%% due 1991 30,000 30,000 16%% due 1992 24,000 24,000 4%% due 1993 5,000 5,000 6%% due 1997 7,000 7,000 - 8%% due 1999 5,000 5,000 7%% due 2002 8,000 8,000 i: 8%% due 2003 10,000 10,000 12%% due 2013 40,000 40,000
' Pollution Control Revenue Bonds:
10%% due 2008 40,000 20,419 Note Payable due 1985 (Prime x 105%) 10,000 Unamortized Premium 126 137 290,001 260,856 fess Portion Due Within One Year 1.125 4,458 Total 288,876 54.6 256,398 53.6 Total Capitalization $528,814 100.0 % $477,959 100.0 %
- = =_:=- = = - - , - .; :. -- =- _ = . - = = = = =
= = = . = = = = = = . . = = = _ = - - -
(1) Authorized and Outstanding. (2) Authorized 60,000 shares. Outstanding 44.900 shares in 1984 and 48.000 shares in 1983. The accompanying notes are en integralpart of the f1nanaalstatements.
M Depreciation of Utility Plant: For l Notes To Consolidated financial statement purposes, Financial Staternents depreciation is computed on the , December 31,1984.1983, and 1982 '" N "' * *"**# l usefullives of the various classes of ; pro y (A) Summary of Significant Accounting Policias: consolidated basis, were equivalent to a General: Eastern Utilities Associates composite rate of approximately 3.2% in (EUA) and EUA Service Corporation 1984,1983 and 1982 based on the (Service) are subject to the jurisdiction average depreciable property balances of the Securities and Exchange at the beginning and end of each year. Commission under the Public Utility Operating Revenues: Revenues are Holding Company Act of 1935, and based on billing rates authorized by Service's accounts are maintained under applicable Federal and state regulatory the system of accounts prescribed by commissions. The retail subsidiaries that Act. The accounting policies and follow the policy of accruing the practices of the retail subsidiaries- estimated amount of unbilled base rate namely, Blackstone Valley Electric revenues for electricity provided at the Company (Blackstone) and Easter' end of the month to more closely match Edison Company (Eastern Edison), and costs and revenues. In addition they also of Montaup Electric Company (Montaup) accrue unrecovered fuel costs. are subject to regulation by the Federal Federa1 Income Taxes: The general t Energy Regulatory Commission (FERC) policy of EUA and its subsidiaries with and the respective state regulatory respect to accounting for Federalincome commissions with respect to their rates taxes is to reflect in income the esti-and accounting. The retail subsidiaries mated amount of taxes currently payable and Montaup conform with generally and to provide for deferred taxes on cer-
. accepted accounting principles, as tain items subject to timing differences
! applied in the case of regulated public to the extent permitted by the various utilities, and conform with the regulatory commissionsc See Note B for accounting requirements and rate- details of major deferred tax items. making practices of the regulatory As permitted by the regulatory com-authority having jurisdiction. missions it is the policy of the subsidiar-Principles of Consolidation: The ies to defer the annualinvestment tax ! consolidated financial statements credits and to amortize these credits include the accounts of EUA and its over the productive lives of the related subsidiaries (Blackstone, Eastern assets. Edison, Montaup and Service). All Allowance for Funds Used During Con-materialintercompany balances and struction: Allowance for funds used dur-transactions have been eliminated in ing construction (AFUDC) (a non-cash l consolidation. item) is defined in the applicable regula- l' Nuclear Generating Companies: tory system of accounts as "the net cost Montaup follows the equity method of during the period of construction of bor-accounting for its investments in four rowed funds used for construction pur-regional nuclear generating companies. poses and a reasonable rate upon other Montaup's investments in these funds when so used." companies range from 2.50 to 4.50 - The combined rate used in calculating percent. Montaup is entitled to AFUDC was 14.25% in 1984 and 14.00% electricity produced from these facilities in 1983 and 1982. In accordance with based on its ownership interests and is rate orders, Eastern Edison and Mon-- billed pursuant to contractual taup provide deferred income taxes on agreements which are approved by the borrowed funds component of FERC. AFUDC. Utility Plant: Utility plant is stated at original cost. The cost of additions to utility plant includes contracted work, direct labor and material, allocable overhead, allowance for funds used during construction and indirect charges for engineering and superviinon. 26 l
1 C) Income end Deferred Taxes:
' Compontnts of income and deferred tax j expense for the years 1984,1983 and <
1982 are as follows: un nousands) 1984 1983 1982
' Federal:
Current S 140 $ 725 $ 435 Deferred . _ 13,187 9,070 4,455 Investment Tax Credit, Net 5,835 8,163 5,778 19,162 17,958 10,668 State: Current 846 1,274 645 Deferred 1,334 986 238 2,180 2,260 883 Charged to Operations 21,342 20,218 11,551 Charged to Other Income 455 417 133 _ Tota _1 _ _ _. _ _ __ _ _ _ _ _ _S21,797__ _ _$,20,635_ $11,684 Federalincome tax expense was less book income subject to tax for the - than the amounts computed by applying following reasons: Federalincome tax statutory rates to an nousands) 1984 1983 1982 FederalIncome Tax Computed at Statutory Rates $26,054 $23,196 $14,661 (Decreases) Increases in Tax From: Equity Component of AFUDC (5,307) (5,835) (3,062) Excess Tax Depreciation - 1,067 1,326 229 Other (2,297) (380) (1,059)
' Federal Income Tax _ Expens_e__ _ _ _ ____ S19,517____$18 307_ _$10,769 The provision for deferred taxes resulting from timing differences is comprised of the following:
' un nousands) 1984 1983 1982
' Excess Tax Depreciation S 1,758 $ 2,076 $ 1,282 Computer Conversion Costs (33) (120)
Estimated Unbilled Revenue (173) 704 969 Unbilled Purchased Power Costs (1,702) Unbilled Fuel Costs (741) 1,347 373 Debt Component of AFUDC 4,817 5,078 3,978 Abandonment Losses 6,562 (847) (806) Capitalized Overheads 1,022 757 481 Effect of State and Local Taxes 1,334 986 238 Other - Net (58) (12) 1
.====== ,== ,14,521 S $10,056 $_ 4,694
= J taj__ = ==,=__= =_
The tax effect of the cumulative has not been recorded because the regu-
- - - amount of timing differences at Decem- latory process is expected to allow such i ber 31,1984 for which deferred Federal amounts to be recovered from customers income taxes have not been provided, is when the taxes are ultimately payable.
approximately $18 million. This amount 1 e 27
(C) CapitalStock: The changes in the number of common ended December 31,1984,1983 and 1982 shares _ outstanding and the increases in .were as follows (dollars in thousands): other paid in capital during the years Number of Common Shares Issued Dividend Increase In Increase Reinvestment Common In Other and Employee . Public Shares Paid-In Year Plans Sales Total At Par Capital 1984 700,582 - 700,582 S 3,502 S 5,940 1983 403,313 1,000,000. 1,403,313 7,017 15,223 1982 324,431 1,800,000 2,124,431 10,622 16,353
)
In the event of involuntary liquidation Under the terms and provisions of the the non-redeemable preferred stock of issues of preferred stock of Blackstone. Blackstone and Eastern Edison is enti- and Eastern Edison, certain restrictions tied to $100 per share. In the event of are placed upon the payment of divi-voluntary liquidation, or if redeemed at dends on common stock by each com-
. the option of those companies, the non- pany. At December 31,1984 and 1983, redeemable preferred stock is entitled the respective capitalization ratios were to: Blackstone's 4.25% issue, $104,40; in excess of the minimum which would Blackstone's 5.60% issue, $103.82; East- make these restrictions effective. '
ern Edison's 4.64% issue, $102.98; East-ern Edison's 8.32% issue, $105.62, prior to October 1,1988 and at reduced premi-ums in subsequent years. (D) Redee==hl= Preferred Stock: Eastern Edison's 13.60%,15.48% and shares the holders of that preferred 13.25% Preferred Stock issues are enti- stock have the right to exercise such tied to mandatory sinking funds suffi- option. cient to redeem 3,000,6,000 and 7,500 In the event of involuntary liquidation shares ~, respectively, during each twelve- the redeemable preferred stock of East-month period, commencing: October 1, - ern Edison is entitled to $100 per share. 1980 in the case of the 13.60% issue, In the event of voluntary liquidation, or October 1,1985 in the case of the 15.48% if redeemed at the option of Eastern Edi- i issue and January 31,1989 in the case of son, the 13.60% and 15 48% issues of
- the 13.25% issue. The redemption price redeemable preferred stock are entitled j for each issue is equal to the initial pub- to $114.82 and $116.98, respectively, j lic offering price ($104.615, $101.50 and prior to October 1,1985; the 13 25%
$100, respectively) plus accrued divi- issue is entitled to $112.10 priot to Janu-dends. Eastern Edison also has the non- ary 31,1986. The redemption premium cumulative option of redeeming an addi- reduces in subsequent years.
tional 3,000,6,000 and 7,500 shares, The aggregate amount of redeemable respectively, during each period at such preferred stock sinking fund require- l
. price. In the case of the 13.25% issue, if ments for each of the five years follow- !
, Eastern Edison does not exercise its ing 1984 are: $923,000 in 1985,1986, i option of redeeming an additional 7,500 1987,1988 and $1,673,000 in 1989.
(E) Retained Earnings: Under the provisions of EUA's Senior retail subsidiaries, Retained Earnings in ;
, Note Agreements, Retained Earnings in the amount of $4,310,745 in the case of '
the amount of $42,249,347 as of Decem- Blackstone and $24,830,834 in the case ber 31,1984 were unrestricted as to the of Eastern Edison, as of December 31, payment of cash dividends on EUA Com- 1984, were unrestricted as to the pay-mon Shares. ment of cash dividends on their Com-Under provisions of the Indentures mon Stock. securing the various bond issues of the 28-I i _-. ;.__..._, ._,._,.. _ - __ , _ . - _.. ..,,.., - . .._..__ _ __ . . . -____,._ _ .I
(F) Long-Term Debt: Und:r terms of the Indentures securing First Mortgage and Collateral Trust
. th:ir various bond issues the retail Bonds due in 1985 by placing the funds subsidiaries are required to deposit necessary to satisfy all debt require-annually with their respective Trustee ments of the Bonds in an irrevocable cash in an amount equel to: 1% of the Trust in accordance with Statement of aggregate principal amount of bonds Financial Accounting Standards No. 76.
previously authenticated and delivered, In December 1984 Blackstone issued in the case of Eastern Edison and 2.25% $6,500,000 Variable Rate Demand Bonds of the average gross investment in due 2014. This series was issued with depreciable property, in the case of the collateral of an irrevocable letter of Blackstone. credit which expires on December 1, The retail subsidiaries have satisfied 1989. The letter of credit agreement per-sinking fund requirements for 1984 mits extensions on an annual basis upon under alternate provisions of their mutual agreement of the bank and respective Indentures by certifying to Blackstone. The weighted average inter-the Trustee "available property est rate on the Demand Bonds for 1984 additions." was 6.78%. The various first mortgage bond The aggregate amount of EUA System issues of the retail subsidiaries are cash sinking fund requirements and secured by substantially all of their util- maturities for long-term debt for each of ity plant. In addition. Eastern Edison's the five years following 1984 are: bonds are collateralized by securities of $1,125h00 in 1985, $4,125,000 in 1986, Montaup in the principal amount of $28,125,000 in 1987, $26,125,000 in 1988
$300,185,400. and $4,125,000 in 1989.
Eastern Edison has accounted for the early extinguishment of a series ofits (G) Lines of Credit: EUA System companies had unused informal agreements with the various short-term lines of credit with various banks, commitment fees are required to banks of approximately $47,000,000 at maintain the lines of credit. December 31,1984. In accordance with (H) Jointly-Owned Facilities: At December 31,1984, Montaup owned electric generating facilities (dollars in the following interests in jointly-owned thousands): Unit Net Construction
' Percent Plant in Accumulated Plant in Work in Owned Service Depreciation Service Progress Canal No. 2 50.00 % $64,471 $20,111 $44,360 $ 73
. Wyman No. 4 1.96 3,978 716 3,262 Seabrook No.1 2.90 62 9 53 100,167 Millstone No. 3 4.01 138,398 The foregoing amounts represent See Note I for information with respect Montaup's interest in each facility. to recent developments affecting the
. Financing for any such interest is pro- Seabrook project, including the termina-vided by Montaup. Montaup's share of tion of construction on the Seabrook No. related operating and maintenance 2 nuclear generating unit. expenses is included in its correspond-ing operating expenses. (I) Commitments and Contingencies: Pensions: The EUA System companies $1,408,000 and $1,942,000 for the years participate in a pension plan covering ended 1984,1983 and 1982, respectively. substantially all of their employess. The EUA System companies make . The total pension expense charged to annual contributions to the plan equal operations, which includes amortization to the amounts accrued for pension of past service costs over 20 years, expense. The accumulated plan benefits amounted to approximately $1,461,000,
/
29
and pl n n:t assets for ths Employees' tion in various procecdings, design R:tir:m:nt Plan of Eastern Utilities changes, revisions of Nuclear Regulatory Asrociat s and its Subsidiary Com- Commission regulations, extraordinarily panies are presented below. high interest rates, inflation and con- j
-- struction delays. The largest participant i Un ' Thousands) January 1 January 1 in the unit is Public Service Company of 1984 1983 New Hampshire (PSNH) which owns a Actuarial Present 35.6% ownership interest. On March 1, Value of 1984, PSNH announced that the esti-Accumulated mated cost of Seabrook No.1 would Plan Benefits; increase by $1.5 billion, over its Novem-Vested $30,800 $26,697 ber 1982 estimate, to $4.5 billion and its Nonvested 1,862 1,544 estimated in-service date would be
$32,6_62. _ _ $28,241~
~
delayed 18 months until July 1986. Market Value of Net In mid-April 1984, PSNH announced Assets Available that it was experiencing a severe liquid-for Benefits $46,995 $40,697 ity crisis and ceased payment of its share of Seabrook construction costs. As The assumed rate of return used in a result of this action, activity at the Sea-determining the actuarial present value brook project was significantly reduced of the accumulated plan benefits was until early July 1984 when PSNH obtained 8.0% for 1984 and 1983. additional financing. Expenditures were Certain health care benefits are pr ' increased to a level averaging $4 million vided to substantially all retired employ- per week at that time, and to $5 million ees. The cost of these benefits, which a week in early December 1984. amounted to approximately $550,000 in As part of a plan to assure completion 1984, is charged to expense when paid. of Seabrook No.1, each Seabrook Joint Long-Term Purchased Power Con- Owner was required to develop a financ-tracts: The EUA System is committed ng plan for assuring that sufficient under long term purchased power con- funds would be available to pay for its tracts, expiring on various dates through proportionate share of the estimated $1
. the year 2007, to pay demand charges billion remaining cash cost to complete whether or not energy is received. Under the unit. Montaup is arranging an irrev-terms in effect at December 31,1984, the ocable standby letter of credit to assure aggregate annual minimum commit- compliance with its 2.90% commitment ments for such contracts is approxi' to complete Seabrook No.1.
mately $50,000,000 for each year Most of the Joint Owners are involved through 1987, $46,000,000 in 1988 and in various regulatory proceedings with 1989 and will aggregate $664,000,000 for respect to Seabrook. Such proceedings j years after 1989. In addition, the EUA are reviewing individual company financ-System is required to pay additional ing plans for Seabrook as well as the amounts depending on the actual desirability of further participation in amount of energy received under such the project. Montaup is not a party to contracts. The demand costs associated any of these proceedings. with these cqntracts are reflected as If, due to regulatory action, financial Purchased Pos er-Demand on the Con- difficulties or any other reason, one or i solidated Income Statement, more of the other Seabrook Joint Owners l Construction: The EUA System's con- should be unable or unwilling to fulfill struction program is estimated at their contractual commitment to pay on
$82,000,000 for the year 1985 and a timely basis their share of Seabrook
$185,000,000 for the years 1985 through No.1 construction costs, completion of 1989 (including allowance for funds used the unit could be jeopardized.'
during construction). Montaup is unable to predict the tim-Seabrook: Montaup has a 2.90% own- ing or outcome of any of the various reg-ership interest in the 1150 megawatt ulatory proceedings, or what effect Seabrook No.1 nuclear generating unit regulatory actions, or any financing diffi-being constructed in Seabrook, New culties of any participant, may have on Hampshire. Allof the necessary state the cost of completion of Seabrook No.1 and Federal regulatory approvals for or on Montaup. Further delays in the in-the construction of the unit have been service date of Seabrook No.1 would obtained, but further appeals are increase the ultimate cost of the unit. possible. The Seabrook No.1 unit has experi-enced substantial cost increases due to, among other things, outside interven-30 l
F Montaup also has a 2.90% ownership Montaup belisves that FERC will con-interrst in thn Seabrook No. 2 nuclear tinue its past practice of permitting g:ntrating unit. In March 1984, the Sea- recovery, through rates, of all costs brook Joint Owners voted to halt con- related to completed as well as can-struction on the unit. In Montaup's celled projects, so long as such costs opinion, this action has effectively can- were prudently incurred. In Montaup's celled the Unit. As of March 31,1984, opinion, all of its costs related to the Montaup had incurred approximately Seabrook units have been prudently
$22,710,000 of costs (including AFUDC) incurred and therefore will ultimately be in connection with Seabrook No. 2. Mon- recovered through rates.
taup has received an accounting order Revenues Subject to Refund: At from the FERC staff permitting it to December 31,1984, approximately record the costs of the abandoned proj- $39,000,000 of Montaup's revenue col-ect as an extraordinary property loss lected since November 1981 is subject to and to amortize these costs, net of possible refund. Of that amount approxi-related tax savings. In addition, in mately $15,400,000, $10,800,000, and December 1984, FERC approved, effec- $11,700,000 relates to 1984,1983 and tive June 6,1985, and on a subject-to- 1982, respectively. Montaup believes refund basis, Montaup's $17.6 million that any amounts which may ultimately rate increase request which was filed in be refunded will not have a material November 1984. This filing included effect on the financial statements. Montaup's request for recovery, over a Guarantees: Montaup and the other ten year period, of all of its costs associ- stockholders of Vermont Yankee Nuclear ated with Seabrook No. 2, including Power Corporation have guaranteed those referred to above. In accordance their respective pro rata shares (2.5% in with FERC practice, recovery or Mon- the case of Montaup) of a $40,000,000 taup's investment will not include any nuclear fuel financing. In addition, Mon-return on the unamortized portion of taup along with the other stockholders such costs. Certain parties have inter- of Connecticut Yankee Atomic Power vened in Montaup's rate proceeding Company have guaranteed their respec-before FERC and are contesting Mon- tive pro rata shares (4.5% in the case of taup's recovery of its investment in Sea- Montaup) of a bank line of credit of up to brook No. 2. $50,000,000 and a debenture bond issue of $50,000,000. Auditors' Report To the Trustees and Shareholders of whose report, dated March 2,1984. Eastern Ut!Ilties Associates: expressed an unqualified opinion on those statements. We have examined the consolidated bal- In ur opinion, the 1984 financial ance sheet and consolidated statement statements referred to above present of capitalization of Eastern Utilities fairly the consolidated financial position Associates and subsidiaries as of of Eastern Utilities Associates and sub-December 31,1984, and the related con- sidiaries as of December 31,1984 and solidated statements of income, retained the consolidated results of their opera-earnings and changes in financial posi- tions and changes in their financial posi-tion for the year then ended. Our exami- tion for the year then ended, in nation was made in accordance with conformity with generally accepted generally accepted auditing standards accounting principles applied on a basis and, accordingly, included such tests of consistent with that of the ecceding the accounting records and such other year. auditing procedures as we considered necessary in the circumstances. The financial statements of Eastern Utilities Op w:# - Associates and subsidiaries for the years ended December 31,1983 and Boston, Massachusetts 1982, were examined by other auditors, March 1,1985 31 J
n 1 Omarterly Financial cnd Comunon Share Information
. (Unzudited)
Earnings Income Consol- per After idated Average Common Share Operating Operating Interest Net Common Dividends __ Market Prjee Revenues Income Charges Income Share Paid High Low Por the quarters thousands *' ended 1984: Dec2mber 31 $87,977 $11,533 $8,709 $7,277 $0.67 $0.485 18 12 % September 30 $88,591 $12,548 . $9,831 $8,397 $0.79 $0.485 15 % 13 %
- June 30 $90,281 $10,284 $7,465 $6,031 $0.58 $0.485 13 % 13 March 31 $94,477 $12,403 $9,783 $8,347 $0.81 $0.455 14 % 14 For the quarters ended 1983:
December 31 $84,474 $ 9,023 $7,777 $6,333 $0.67 $0.455 18 % 14 % September 30 $73,015 $10,207 $8,587 $7,134 $0.79 $0.455 17 % 15 % Juns 30 $64,266 $ 7,546 $6,313 $4,861 $0.54 $0.455 16 % 14 % March 31 $80,695 $ 9,760 $8,501 $7,036 $0.80 $0.425 15 % 13 % The common shares of Eastern Utihties Associates
' trsicted on the New York Stock Exchange under ths ticker symbol "EUA". The appruximate number of Common Shareholders of record on February 1, 198S was 23,800.
Supplementary Information To Disclose The Effects of Changing Prices (Unaudited) The following supplementary informa- As prescribed in Financial Accounting tion is supplied in accordance with the Standard No. 33, income taxes were not requirements of the Statement of Finan- adjusted. cial Accounting Standards No. 33 (as Under the rate-making practices pre- 1 amended) to provide certain information scribed by the regulatory commissions about the effects of changing prices. It to which the System companies are sub-should be viewed as an estimate of the ject, only the historical cost of plant is approximate effect of inflation, rather presently recoverable in rates as depre-than a precise measure. ciation. The excess cost of plant that Current cost amounts, as measured by exceeds historical cost is not presently 1 the Handy-Whitman Index of Public Util- recoverable in rates as depreciation and ity Construction Costs, reflect changes is reflected as a reduction to net recover-in specific prices of plant from the date able cost. The gain from the decline in the plant was acquired to the present. purchasing power of net amounts owed Since utility plant would not be replaced is primarily attributable to the substan- l precisely in kind, current cost does not tialamount of debt which has been used l represent the replacement cost of the to finance property, plant, and equip-System's productive capacity, l ment. Since the depreciation on this ! Depreciation was computed by apply- plant is limited to the recovery of histori- l ing the current depreciation rates to the cal costs, the System companies do not l respective indexed plant amounts. have the opportunity to realize a holding Fuelinventories, the cost of fuel used gain on debt and are limited to recovery in generation and purchased power for only of the embedded cost of debt resale have not been restated from their capital, historical cost. Regulation limits the recovery of fuel and purchased power costs through the operation of adjust-ment clauses. 1 1 32
m Consolklated Statement of Income Adjusted for Changing Prices For the year ended December 31,1984 Current (Thousands of Dollars) Cost Effect on the following if utility plant adjustments are made: D:preciation, as adjusted $ 37,683 Income After Interest Charges, as adjusted $ 10,758 Increase in Specific Prices of Utility Plant Held During the Year * $ 24,087 Adjustment to Net Recoverable Cost 19,930 Effect of Increases in General Price Level (38,969) Excess of Increase in General Price Level Over Increase in Specific Prices After Adjustment to Net Recoverable Cost (5,048) G:in From Decline in Purchasing Power of Net Amounts Owed 17,462 b = = === =_z =. = = _ r.= ==:-w=.-. = = = - . . .:=:--=== ==
== -
*At December 31,1984, the current cost of net util-Ity plant was $1,003.015 while historical cost or rnt cost recoverable through depreciation was
$543.246.
Five Year Summary of Selected Financial Data Adjusted for the Effects of Changing Prices Years Ended December 31, 1984 1983 1982 1981 1980 (in Thousands of Average 1984 Dollars) Operating Revenues $361,325 $317,572 $312,579 $342,746 $310,584 Current Cost Information: Income (Loss) After Interest Charges
- 10,758 10,111 (546) (3,085) (1,781)
Income (Loss) Per Common Share After Preferred Dividend Requirements
- 0.48 0.47 (0.60) (1.14) (0.70)
Excess Of Increase In General Price Level Over Increase In Specific Prices After Adjustment To Net Recoverable Cost (5,048) (4,919) (7,758) 5,710 25,224 Nst Assets at Year-End At Net Recoverable Cost 239,938 232,639 204,138 161,262 158,481 GeneralInformation: Gain from Declino In Purchasing Power Of Net Amounts Owed 17,462 9,389 8,637 19,156 25,328 Cash Dividends Paid Per Common Share 1.91 1.88 1.84 1.84 2.03
- Market Price Per Common Share At Year End 18.00 15.62 15.31 13.09 14.13 Average Consumer Price Index . 312.0 298.4 289.1 272.4 246.8 *B:.forn Adjustment to Net Recoverable Cost.
33
rwidated Operating Statistics Year ! Ended December 31, 1984 1983 1982 1981 1980 1979 1974 Energy Generated and Purchased
. (millions of kwh):
Generated - by Somerset Station 1,180 1,123 738 940 1,041 792 1,643
- by Nuclear Units 458 1,019 861 869 733 1,012 420
- by Jointly-Owned Units 1,507 1,724 1,632 1,784 1,746 1,795 -
- by Life of the Unit Contracts 814 452 706 675 757 706 760 Int:rchange with NEPOOL (136) (285) (49) (240) (263) (600) 367 Purchased Power - Unit Power 480 168 161 240 319 410 480
._Totil_Generat_ed and Purchased .
__ _ _ _ _4,303 4,201_ 4,049 4g68 4,333 4,13 3.,_670 i Oper; ting Revenues (thousands): R:cid:ntial - $121,623 $104,101 $ 97,161 $ 94,217 $ 79,357 $ 63,394 $ 47,803 Commercial 105,310 89,225 83,519 82,515 67,377 53,012 33,163 Industrial 75,850 58,901 56,468 60,486 48,931 38,192 28,380 Oth:r Electric Utilities 23,909 16.212 18,289 22,770 18,183 12,435 11,737 Oth;r 9,396 13,463 10,761 9,081 7,886 7,502 5,159 Tot:1 Primary Sales Revenues 336,088 281,902 266,198 269,069 221,734 174,535 126,242 ; Unit Contracts 25,237 20,548 22,219 28,862 22,908 11,266 4,343
- Tot:1 Operagg Rpvenu_gs_
_ _ , = = = = = = S361,325 $302,450 $288,417 $297,931 $244 642 $185,801 $_130.,58_5 En:rgy Sales (millions of kwh): R;cid:ntial 1,205 1,197 1,137 1,122 1,149 1,150 1,052 Commercial 1,113 1,103 1,044 1,055 1,058 1,052 792 Indu: trial 856 810 772 841 848 859 830 Oth:r Electric Utilities 396 386 365 431 420 398 519 Oth:r 30 34 36 38 42 44 45 Tot:1 Primary Sales 3,600 3,530 3,354 3,487 3,517 3,503 3,238 Lo:::: and Company Use 215 201 206 196 230 226 215 Tot:1 System Requirements 3,815 3,731 3,560 3,683 3,747 3,729 3,453 Unit Contracts 488 470 489 585 586 386 217 ! ._ Total En_ergy Sales _ . 4,303 4,201 _4,049 4,268 4,333 4,115 3,670 ; Number of Customers: ' Rrid:;ntial 211,622 209,678 207,702 205,894 204,221 201,435 193,110 C:mmercial 22,177 21,605 21,133 20,732 20,380 20,073 20,311 Indu: trial 1,209 1,189 1,210 1,213 1,219 1,222 1,655 Othir Electric Utilities 16 12 18 14 17 16 12 Oth;r 29 31 31 34 30 150 241
._ Tot:1 Cps _tp_mers __ _ _. _ _ _ __ __ _ _ _ _ 23 5,053_ 232,515 _ 230,094_ 2_27,887_ _225,867 222,896 2_1_5,3_29 Av;r:ge Revenue per Residential Cu:t:mer ($) _
575 496 468 458 389 315 249 Av;r:ge Use per Residential Cu;tomer (kwh) 5,694 5,708 5,474 5,449 5,626 5,708 5,448 Aver:ge Revenue per kwh: Rtid:ntial 10.09c 8.70s 8.55d 8.40t 6.91d 5.52d 4.54d Commercial 9.46c 8.096 7.99t 7.82t 6.37d 5.04t 4.19e Indu: trial 8.86c 7.27d 7.31d 7.20e 5.77t 4.44d 3.42t 34
mummmmmmmmmmmmmmmuum chWated Operating Statistics - Generri YIars Ended December 31, 1984 1983 1982 1981 1980 1979 1974 C;pitalization (thousands): Bonds (Net) $266,500 $226,219 $165,950 $155,964 $125,182 $ 80,985 $ 65,023 22,376 30,179 33,900 32,500 37,500 42,500 3,400 Other Long-Term Debt ___ __ _ _ _ _ . Total Long-Term Debt 288,876 256,398 199,850 188,464 162,682 123,485 68,423 48,319 49,234 49,536 34,985 35,278 20,686 15,069 Preferred Stock Common Equity 191,619 172,327 140,973 109,875 95,424 93,765 50,017 _a Total Capitalizati_on_ ____ _ $528,814_$47_7,959 $390,359 _$333,324_$293,384 $237,93_6 $133,509 Common Share Data: Earnings per Average Common Share (C) 2.85 2.80 2.25 2.03 1.63 1.74 1.56 Dividends per Share ($) 1.91 1.79 1.70 1.60 1.60 1.60 1.50 Peyout (%) 67.0 63.9 75.6 78.8 98.2 92.0 96.2 Average Common Shares Outstanding 10,562,324 9,062,810 7,519,381 6,123,334 5,525,320 4,871,667 2,784,945 Total Common Shares Outstanding 10,892,886 10,192,304 8,788,991 6,664,560 5,583,634 5,438,969 2,784,945 Book Value per Share ($) 17.59 16.91 16.04 16.49 17.09 17.24 17.99 Parcent Earned On Average Common Equity (%) 16.5 16.2 13.5 12.1 9.5 9.4 8.7 Market Prices ($): High 18 18 % 14 % 12 % 13 % 15 % 17
' Low 12 % 13 % 11 10 % 10 % 11 % 8 Year End 18 147/s 14 % 113/s lit /s 11 % 8%
Miscellaneous ($in thousands): Total Construction Expenditures ($) 95,211 103,309 77,096 54,436 34,939 30,498 32,441 C sh Construction Expenditures ($) 73,159 78,912 61,236 41,745 25,024 24,230 29,169 Internally Oenerated Funds as a % of Cash Construction (%) 55.8 34.5 20.7 22.5 4.5 26.7 12.0 Installed Capability - MW 931 931 927 927 940 996 885 Lese: Unit Contract Sales - MW 75 75 70 80 88 88 63 System Capability - MW 856 856 857 847 852 908 822 System Peak Demand - MW 716 700 680 661 695 677 590 R: serve Margin (%) 19.5 22.3 26.0 28.1 22.7 34.1 39.3 System Load Factor (%) 60.6 60.8 59.8 63.6 61.5 62.8 64.b Sources of Energy (%): Nuclear 10.9 23.8 22 20.6 17.0 21.9 18.4 Coal 29.3 16.3 Oil 59.8 59.9 77.8 79.4 83.0 78.1 81.6 Cost of Fuel (Mills Per kwh): Nuclear 8.9 6.5 6.3 5.4 4.9 3.5 2.4 Coal 27.8 21.6 Oil 43.6 41.5 41.5 47.0 35.3 25.1 20.2 All Fuels Combined 36.1 30.7 34.1 39.0 30.8 19.6 16.8 35
7 Dividend Reinvestment cnd System Companies Common Share Purr hmae Plan A Dividend Reinvestment and Common Eastern Utilities Associates Share Purchase Plan is available to all EUA Service Corporation registered shareholders and System Montaup Electric Company company employees. One Liberty Square Participants in the Plan are given a Post Office Box 2333 5% discount on shares purchased with Boston, MA 02107 reinvested dividends. Participants may (617) 357-9590 also make additional cash payments as John F. G. Eichorn, Jr., President frequently as once a month to purchase additional shares with no discount. Eastern Edison Company Optional cash payments are hmited to a 110 Mulberry Street Brockton, MA 02405 maximum of $5,000 per calendar quarter (617) 580-1213 and must be received not later than the Allan K. Hamer, President 5th day preceding the Investment Date to be invested in that month. Blackstone Valley Electric Company The Economic Recovery Tax Act of Washington Highway 1981 provides special tax treatment Lincoln, RI 02865 through the end of 1985 to individual (401)333-1400 shareholders who reinvest their divi- William R. Bisson, President dends under EUA's Plan. Individual shareholders are eligible to exclude from I their income, for Federalincome tax pur-poses, up to $750 annually ($1,500 on a The name Eastern Utilities Associates is joint return) of qualified reinvested the designation of the Trustees for the dividends. time being under a Declaration of Trust The Investment Date for all shares dated April 2,1928, as amended, and all purchased under the Plan is the divi- persons dealing with Eastern Utilities dend payment date for the months in Associates must look solely to the trust which dividends are payable. For each property for the enforcement of any month in which a dividend is not pay. claims against Eastern Utilities Asso-able the Investment Date is the 15th of ciates as neither the Trustees, Officers such month. The price of shares pur. nor Shareholders assume any personal chased is based on the average closing liability for obligations entered into on price of EUA shares for the five trading behalf of Eastern Utilities Associates. days preceding each investment date. I Complete details regarding the Plan may be obtained by writing: The First National Bank of Boston EUA Automatic Dividend Reinvestment Plan Post Office Box 1681 Boston, MA 02105 Transfer Agent The First National Bank of Boston Post Office Box 644 ' Boston, MA 02102 , (Common and Preferred Shares) 1
- Bond Trustee State Street Bank and Trust Company 225 Frarklin Street Boston MA 02110 (Bonds of all series)
Annual meeting The 1985 Annual Shareholders Meeting will be held on Monday, April 22,1985 at 10 a.m. in the Board Room on the 33rd ' Floor at State Street Bank end Trust Company,225 Franklin Street, Boston, 36 P4assachusetts.
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DEAR SHAREOWNER: Last April I wrote to you and stated that the events surrounding the Company's financial position at that time were the most serious chal-lenges ever faced by PSNH. Through the sacrifice of employees and shareowners alike, the Com-pany has overcome many of the serious challenges we faced during 1984. Working together, we have taken some substantial steps in our efforts to restore the financial health of the Company. As a result, today we are better able to face the remaining challenges to a more stable and secure future for PSNH, but much remains to be done. I would like to take this opportunity to review key events in 1984 and relate the positive changes that have taken place. In the spring of 1984, facing a serious cash crisis, we instituted a number of measures in order to maintain PSNH's corporate existence. Two critical measures taken were the cessation of payments by the Company to the Seabrook project and, on April 18,1984, halting construction of the project. Other measures included halting construction on the oil-to-coal conversion project at Schiller Station, implementing a plan to reduce the PSNH workforce, and reducing management salary levels. Finally, with great reluctance, the Board of Directors voted to omit dividends on shares of common and preferred stock of the Company. In July,1984 the Company was able to resume its Seabrook construction payments as well as construction on Seabrook Unit 1. Construction on that unit continues today at about half of the projected full construction level. Later in 1984, the Company resumed construction at Schiller Station and placed the first of three coal-burning units into operation in December. Through attrition and early retirements, the Company was also successful in reducing the number of employees at an annual savings of approximately $7.5 million. Other cost saving measures were also implemented, further reducing operating costs. Much of what we accomplished in 1984 was also the result of our ability, with the assistance of Merrill Lynch Capital Markets, to complete two crucial financings. The first, a short-term financing of $90 million to provide an immediate cash infusion, was completed in June. We were also able, in June, to successfully restructure loan agreements with certain lenders. The second, a long-term financing completed in Decem-ber, provided PSNH with approximately $275 million in cash proceeds for external cash operating funds.
Because of those financings, our successful efforts to reduce expenses, and the exemplary performance of all PSNH employees, the Company should now be able, with continued rigid control over cash flow, to operate without additional financing through 1986, when we expect Seabrook Unit 1 to be completed. In addition to the two financings in 1984, a subsequent financing will be necessary to satisfy our Seabrook Station obligations. Unfortunately, because of our very tight cash position and restrictions placed upon the declaration and payment of dividends by the New Hampshire Public Utilities Commission, as well as restrictions contained in terms of certain loan agreements and the Company's Articles of Agreement, it has been necessary to omit dividends on shares of common and preferred stock. While substantial strides have been made in the past year in bringing the Company back from the edge of bankruptcy, it is essential that shareowners understand that if the Company is to remain a viable corporate entity it must continue to conserve its cash reserves at least until the completion of Seabrook Unit 1. In this light, both the manage-ment and Board of Directors of the Company must continually weigh the need to provide a current return to equity holders against maintain-ing the long-term viability of our shareowners' investment. In that regard, we believe that the completion of Seabrook Unit 1 is the only realistic course of action to take to continue to preserve your investment. This belief has been a key factor in decisions that were made regarding the Seabrook project. Despite the crisis we faced throughout the year, the continuation of safe, reliable service to our customers was essential. We asked our employees to excel in adversity and they responded beyond our expectations. Extremely good examples of their accomplishments are the record breaking performances in 1984 of three of our major generating stations. Included were Merrimack Station, which generated 10.6% more kilo-watt-hours in 1984 than in 1983; Newington Station, which was availa-ble 88% of the time as opposed to the national average of 75.8%; and Schiller Station, where two units posted 94% and 99% availability records. Everyone at PSNH has worked diligently during 1984 to overcome the difficult challenges that were presented. The immediate crisis we faced in the spring of 1984 has passed, but securing the long-term viability of the Company remains ahead. In the coming year, management, em-t _ _ _ - _ _ _ _ _ _ _ _ .
ployees and the Board of Directors of your company are committed to continue to work toward the successful completion of a number of goals that are vital to assuring that long-term viability. Among the most important of these goals are, first, the completion of the current, proposed financing, which is designed to provide funds for the Company's share of the cash cost to complete Seabrook Unit 1; and second, the completion of that unit in the most expeditious manner. Over the past year, as we have faced the challenges presented to us and have made the difficult decisions, the interests of the Company's share-owners, as well as those of its customers and employees, have been ever present in our minds. This will, I assure you, continue to be the case. To conserve cash, we have elected once again this year to forego the more traditional Annual Report to Shareowners. In its place we are providing to each shareowner a copy of the Company's Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 15,1985. Sincerely, ROBERT J. HARRISON President and Chief Executive Officer i
SECURITIES AND EXCH ANGE COMMISSION WASIIINGTON, D.C. 20549 Form 10-K ANNUAL IlEPOllT PUllSUANT TO SECTION 13 OR 15(d) OF TIIE SECUIIITIES EXCEIANGE ACT OF 1934 For the fiscal year ended Comndssion File Number December 31,1981 1-6392 Public Service Cominuiy of New Hampshire (Exact name of registrant as spccifcd in charter) NEW IIANIPSillHE 02-0181050 (State or Other Jurbdiction of (1.R.S. Emplover incorporation or Organization) Identifcaticm No.) 1000 ELNI STREET, .\lANCilESTER, NEW IIANIPSillHE 03105 (Addren of l'rincipal Executice Offices) (7ip Code) Registrant's telephone number, including area code: 603-669-.1000 Securities registered pursuant to Section 12(b) of the Act: Name of Each Exchange on Title of Each Class which Registered Conunon Stock, $5 Par Value New York Stock Exchange Preferred Stock, $25 Par Value,11% Dividend Series New York Stock Exchange Sinking Fund Preferred Stock, S25 Par Value, 11.2101 Dividend Series New York Stock Exchange Sinking Fund Preferred Stock,525 Par Value,17% Dividend Series New York Stock Exchange Sinking Fund Preferred Stock,525 Par Value,15% Dividend Series New York Stock Exchange Sinking Fund Preferred Stock, S25 Par Value,15.1(Ch Dividend Series New York Stock Exchange Sinking Fund Preferred Stock, $25 Par Vahic,13Ch Dividend Series New York Stock Exchange Sinking Fund Preferred Stock, $25 Par Value,13.80% Dividend Series New York Stock Exchange General and Refunding .\lortgage llonds, Series H 12% due 1999 New Ymk Stock Exchange General and Refunding Afortgage Honds. Series C 11%% due 2000 New York Stock Exchange General and Refunding Afortgage Honds, Series E ISCE due 1959 New York Stock Exchange 15%% Dehentures due 194S New York Stock Exchange 11%% Dehentures due 1991 New York Stock Exchange 15"b Debentures duc 2003 New York Stock Exchange 17%% Debentures due 2001 New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: Title of Clau Preferred Stock, $100 Par Value,3.35CF Dividend Series l Preferred Stock, $100 Par Vahie,1.50"b Dividend Series Convertible Preferred Stock, $100 Par Value. 5.50% Dividend Series Preferred Stock, $100 Par Value,7.92"E Dividend Series Sinking Fund Preferred Stock, $100 Par Value,7.6l% Dividend Series Sinking Fund Preferred Stock, $100 Par Value,9.00"F Dividend Series Indicate bv check mark whether the registrant (1) has filed all reports required to be filed by Sec-tion 13 or 15(d) of the Securities Exchange Act of 1931 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirenients for the past 90 days. Yes \' No The aggregate market value of the shares of Conunon Stock, $5 par vaho of the Company behl by non-affiliates of the Company was $176,557,921 on February 11,1985. Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the close of the period covered by this report. Clan Outstanding at December 31, IDH Common Stock, $5 Par Value 37,191.tb7 Shares Documents Incorporated by Reference Portions of the definitive proxy statement for the Company's 1955 Annual Nfecting of Stock-holders. (Part Ill)
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PUBLIC SERVICE CONIPANY OF NEW IIAhfPSIIIRE 1984 FORhi ION ANNUAL REPORT Table of Contents PART I Page Item 1 Business 1 Item 2 Properties . 20 Item 3 Legal Proceedings 20 Item 4 Submission of hiatters to a Vote of Security Holders . 23 Item 4A Executive Officers of the Registrant . .. 24 PART II Item 5 Afarket for Compan/s Common Equity and Related Security IIolder hiatters .. 26 Item 6 Selected Financial Data 27 Item 7- \fanagement's Discussion and Analysis of Financial Condition and Results of Operations . 27 Item 8 ' Financial Statements and Supplementary Data , 31 Item 9 Disagreements on Accounting and Financial Disclosure 52 PART III Item 10 Directors and Executive Officers of the Registrant 52 Item 11 Executive Compensation 52 Item 12 Security Ownership of Certain Beneficial Owners and Afanagement 52 Item 13 - Certain Relationships and Related Transactions 52 PART IV Item 14 Exhibits, Financial Statement Schedules, and Reports on Form 8-K . 53
PART I Item 1. BUSINESS Introduction Public Service Company of New Ilampshire (the " Company") is the largest electric utility in New IIampshire, operating a single integrated system which supplies electricity to approximately three quarters of the State's po[mlation. It distributes and sells electricity at retail in approximately 200 cities and towns, including hianchester, Nashua, Portsmouth, Berlin. Keene, Laconia and Rochester, in the State of New llampshire. It also sells electricity at wholesale to seven other utilities. See W/mle-sale Customers below. The Company was incorporated in 1926 m. der the laws of the State of New IIampshire. The Company is the principal owner of the Seabrook nuc! car generating plant, Unit 1 of which is currently under construction and which has experienced persistent and substantial cost increases. The principal risks associated with the completion of construction of Seabrook Unit I are that the costs of completing the Unit will increase inordinately, the Company will be unable to finance its share of such costs or one or more of the other Seabrook Joint Owners will be unable or unwilling to finance or pay its share of such costs, or one or more regulatory agencies will decide that the Unit should not be completed. If construction of Unit I were not completed, or commercial operation were un-duly delayed, or adequate rate relief were not granted the Company upon commencement of commercial operation, it would be very difficult for the Company to avoid proceedings under the Bankruptcy Code. The area served by the Company esperienced relatively rapid population and economic growth during the 1970's and omtinues to experience one of the lowest unemployment rates in the nation. After several years of relatively flat kilowatt-hour sales, the Company experienced an increase of 6.lTc in prime sales for 19s t and 3.6G in 19S3. These increasm in kilowatt-hour sales reflect, among other things, an increase in the number of customers served and a general improvement in economic con-ditions. At December 31, 1954 the Company served approximately 311.300 customers, an increase of 4.leb compared to December 31,1953. Industry Problems Electric utilities throughout the United States which are constructing nuclear generating plants have been the subject of extensive adverse publicity and criticism. Some nuclear projects have been discovered to have unanticipated e<mstruction defects and quality assurance deficiencies which have led to substantial cost overrims and significant etmstruction delays, resulting in some cases in pmject abandonments. Several electric utilities have announced licensing problems with and can-cellations of unfinished nuclear plants, which have resulted in substantial write-offs and the reduction or omission of dividends. In the case of one utility, delay in obtaining an operating license from the Nuclear Regulatory Conunission ("NRC") as a result of, among other things, difficulties in com-pleting emergency response and evacuation plans has threatened the utility's solvency. In addi-tion, various state authorities are reviewing alternatives for the moderation of the eITect on rates of placing major generating facilities in service upon commencement of commercial operation by, for example, phasing the cost of such facilities into rate base over a period of years rather than recognizing the full cost immediately. Various state authorities have proposed and instituted cost containment plans under which the costs for construction projects above a predetermined level are not fully reflected in rates. All of these events have adsersely aliceted the market for the securities of utilities with nuclear investments, including the Company, and all of these problems may continue to affect the Company in the future.The insohency of another electric utility with a nuclear investment might have a materially adverse effect upon the Compan/s financing plans. For a further discussion of certain of these problems as they affect the Company, see Seabrook Nuclear Plant, item 2, Properties, and item 3. Lccal Procenlinus below. 1
Seabrook Nuclear Plant The Company is the principal owner of a nuclear-fueled steam electric generating plant under construction at a site located in Seabrook, New IIampshire (the "Seabrook Plant"), which was planned to have two Westinghouse pressurized water reactors (each with a rated capacity of 1,150 megawatts), utilizing ocean water for condenser cooling purposes. Various other New England utilities are par-ticipating in the ownership of the Seabrook Plant under a Joint Ownership Agreement. The owner-ship interests in the Seabrook Plant are as follows: Public Service C any of New IIampshire 35.56942 % The United Ill, .mg Company 17.50000 Alassachusetts ' .cipal Wholesale Electric Company 11.59340 New England I er Company 9.95766 Central Maine Power Company 6.04178 The Connecticut Light and Power Company 4.059S5 Canal Electric Company 3.52317 Montaup Electric Company 2.599S9 Bangor Ilydro. Electric Company 2.17391 New IIampshire Electric Cooperative, Inc. 2.17391 Central Vermont Public Service Corporation 1.59096 Maine Public Service Company 1.46056 Fitchburg Gas and Electric Light Company 0.S6519 Vermont Electric Generation and Transmission Cooperative, Inc. 0.41259 Taunton Municipal Lighting Plant 0.10034 IIndson Light and Power Department 0.07737 100.00000 % After the decision by the Company on April 18.19S4 to suspend payment of its share of the con-struction costs of the Seabrook Plant (see Financing-Liquidity Crisie below), the Joint Owners entered into a number of agreements, inchiding amendments to the Joint Ownership Agreement, to provide for the establishment of, among other things, a six-member Executive Committee, of which the Company is a member, to oversee the budget for the Seabrook Plant. The Executive Committee is in turn subject to the control of joint Owners holding 51% of the ownership interests. As a result of these amendments, the Company no longer has sole authority over the level of construction expendi-tures at the Seabn>ok Plant. These arrangements also contemplate that the Company will delegate its reslwmsibilities under the Joint Ownership Agreement for the construction and operation of the Seabrook Plant to a new managing agent. New IlampsLire Yankee. On June 23,19s4, at the same time that the Joint Owners adopted reso-lutions to resume c<mstruction of Seabrook Unit I and accepted the financing plans of the Seabrook participants for completion of construction of Seabnx>k Unit 1 (see Financing - Netchrook Plan below), the Joint owners unanimously adopted a resolution providing for the phased transfer of ecm-struction and operation responsibilities from the Company to an independent entity, subject to the receipt of all necessary regulatory approvals, including partienlarly that of the NRC. See Scabrook Unit 1 - Liceming below. Responsibility foc construction of Unit 1 is piex otiv vested in a new divi. sion of the Company, known as the New Ilampshire Yankee Division. On January 31,1955, the Com-pany was notified by the staff of the NHL (Lat the organization of, and the delegation of responsibilities by the Company to, the New Ilampshire Yankee Division were acceptable. Effective upon receipt of all required regulatory approvals, the New Ilampshire Yankee Division will be reconstituted as an independent corporate entity, to be known as New Ilampshire Yankee Electric Corporation ("N.II. Yankee"), which will assmne the Compan/s responsibilities for the completion of construction and start up o' Unit 1. The Joint Owners of the Seabrook Plant will own the new corporation and will be represented on its governing board in proportion to their ownership of the Seabrook Plant. The 2
I existing agreement between the Company, as agent for the Joint Owners, and Yanb Atomic Electric Company ("YAEC") for the pmvision by YAEC of engineering, quality assurance, and other services for Seabrook Unit 1 will then be administered by N.II. Yankee. It is contemplated that at some future time, subject to regulatory approval, N.II. Yankee may be given responsibility for the operation and maintenance of Unit 1. A petition has been filed by an intervenor with the Director of Nuclear Reactor Regulation of the NRC seeking an immediate halt of construction of the Seabrook Plant, alleging that the transfer by the Company of its construction and operation responsibilities has already taken place in violation of the construction permits for the Plant. The Company cannot predict the resolution of this petition. Throughout the period of construction and operation of Unit 1 the Joint Owners' Executive Com-mittee will continue to review and approve or modify construction budgets, costs of construction, and the costs of operation and maintenance of Unit 1 as well as the disbursement of Joint Owner payments made under the Joint Ownership Agreement. Construction. The Seabrook Plant has experienced persistent and substantial cost inerenses. The increased costs have been due, among other reasons, to design changts, revisions of regidations of and other actions by the NRC and other regulatory bodies, extraordinarily high interest rates, inflation and construction delays, all of which have resulted in total costs, including allowance for funds used dur-ing construction ("AFUDC") (see Note 2 of Notes to Financial Statements), far higher than planned. Allegations have been made in derivative lawsuits against certain officers and directors of the Com-pany, one of which also names United Engineers & Constructors, Inc., the architect / engineer for the Seahrook Plant ("UE&C"), that mismanagement of construction of the Plant has resulted in schedule delays and increased costs of the Plant. See Item 3, Legal Proceedings - Other below. The estimates of cost and emnpletion dates for the Seahnmk plant released in Klarch 1981 were about 7D greater and 18 months later, respectively, than those made by UE&C in November 1982, which were in turn 43'1 greater and 10 months later, resp (ctively, than previous estimates. Expenditures on Seabrook Unit 2 were reduced to a minimal level in the spring of 1934, and there is no viable plan for completing Unit 2 at this time. See Scahrook Unit 2 below. On Afarch 1,19Si the Company hired a new construction manager for the Seabrook Plant who had been responsible for the successful construction and commencement of commercial operation of a nuclear generating plant in the southeastern United States in a total of about six years. Since the arrival of this manager, a number of contractors employed to work on the Plant have been eliminated , and an impmved construction management system has been installed. The agreement of the relevant j c<mstruction trade unions to apply the Nuclear Power Construction Stabilization Agreement to the Seahnnk Plant has also been obtained; the Agreement contains work rule changes which the Company believes are advantageous as well as a no strike clause. Construction of Unit I was suspended by the Company in April 19st, and re-Seahnmk Unit 1. 30,1941 update of sumed on July 2 at an expenditure level averaging SI million per week. An August the estimate of the cost and schedule completed by the Company's New Ilampshire Yankee Division, estimated that the Unit would cost $1.5 billion (including AFUDC at a composite rate for all joint Owners) and that the Unit would commence commercial operation on August 31,1980. This updat the estimate reflected the effects of the shutdown of construction from April to July 1951, an assu limitation on cash construction expenditures to an average of $1 million per week during the balance of 19St and the elimination of expenditure limitations thereafter. In the fall of 1941 an independent consulting firm retained by the Joint Owners reviewed the August 30,19st dupdated con- estimate of cost and schedule of Unit I which assumed the resumption of full ecmstruction d aingood January 1955, an cluded that, based on that assmnption, the estimate of the cash emt to complete Unit I ha probabil;ty of being achieved but that the probability of achieving full power commercial o 3
t = ' =. a e f by August 31,1956 was very low. By action of the Joint Owners the expenditure level was increased : IE to $5 million per week conuneneing December 1,19s1. The Company believes that this expenditure g limit will remain in effect until regulatory authorities have issued orders permitting the completion of Seabrook Unit 1. See Other Seabrook Participants and Item 3. Other Nere llampshire Proceedings. 1 The earliest date this coukl occur is April 1,1955. The estimates used in this lleport are based on the E assumption that the expenditure limit will be removed by that date and that Seabrook Plant con-b struction management will be able to plan in advanca for removal of the limit so as to ensure optimum p construction scheduling. Ilowever, it is now unlikely that the expenditure limit will be completely I p removed by that date. At December 31, 1984. Unit I of the Seabrook Plant was estimated to be approximately S3"r complete. The principal concerns of tim Company with respect to Unit I are its cost, commercial operation date, licensing, rate treatment aad regulatory appmvals for completion of construction. Adverse developments with respect to any of these concerns conhl jeopardize the completion of Unit 1. 3 If construction of Unit I were not completed, or commercial operation were unduly delayed, or ade-fluate rate relief were not granted the Company upon commencement of conunercial operation it
; would be very difficult for the Company to avoid proceeding under the llankruptcy Code.
Cost. At December 31, 1981. the Company had invested in Unit I and conunon facilities approximately $1,193,700.000 (including AFUDC of $395,900D00 but excluding uranium fuel of 7
$50,700,000 ). If expenditure limitations currently in effect were lifted effective April 1,1955, the commerual operation date would be October 31, 1956, and the total cost of Unit I would be $1.6 billion including AFUDC at a composite rate for all Joint Owners of $1.7 billion and a management contingency allowance of $170 million, but excluding uranium fuel. The Company's share of this cost would be $1,509.700.000 (including AFUDC of $759,200,000 but excluding uranium fuel of !
, $9%,000,000). The Company anticipates that after the expenditure limit has been removed, revised j estimates for Seabrook Unit I will be made.
T Commercial Operation Date. The principal factor affecting the cost of Unit I at this time is its commercial operation date. Substantial revisions to all prior estimates of such date have been p made from time to time. The current estimate of the commercial operation date of Unit 1 is October 31,1956, assuming the expenditme limit is emnpletely removed by April 1,1955. Various later com-mercial operation dates for Unit I have been estimated by other participants, construction consultants. regulatory bodies and other parties. Licerning. Timely receipt from the NilC of an operating licence is necessary in order to com-menee commercial operation of Unit 1. Formal hearings were held in the summer of 19S3 and further hearings are expected to be held in 1955. The Company's rerpiest for the operating license is being actively opposed by intervenors, including the Attorneys General of the State of New Ilampshire and the Commonwealth of hlassachusetts. In the course of the proceedings for the issuance of the opera- , ting license, it is anticipated that t;.e New Ilampshire Civil Defense Agency, the Afassachusetts Civil Defer.se Agency and the Federal E:nergency Afanagement Agency will develop emeigency response r and evacuation plans in conjunction with 1. mumcipalities in New Ilampshire and 7 municipalities in hf assachusetts in proximity to the Plant. hiost of the resp <msible governmental entities appear to be pmecedmg with the development of emergency response and evacuation plans, although several hfasschusetts and New Ilampshire municipalities and the Nfassachusetts Attorney General are op-posing such deselopment or the aderinacy of the proposed procedures and plans. The Company jt cannet predict whether such opposition, or that of other intenenors, might delay the emmnercial < operation of the Unit and the Governor of N!assachusetts has indicated that he will not certify the hfassachusette plan to the Federal Ib "rgency Af anagement Agency culc<s sll affected Af assachmetts numicipalities have approved their re pectise plans. State and local opposition has delayed licensing of another r.uclear generating plant located on 1.ong Island. New York for such an extended period : that the inability of the cemtructing utility to earn a cash return on its investment in the plant [ has threatened that utility's solvency. .y 4
The NIIC Advisory Committee on Reactor Safeguards reviewed the application for a Seabrook operating license, toured the site and, in April 1953, issued its letter recommending favorably upon low-power operation of the Seabrook Units. During the suspension of construction the Company reviewed documentation for the remaining construction and awessed the stattis of construction to date. At this point in the construction of Unit 1 no serious deficiencies have been fotmd in the quality assurance program, which is a comprehensive program for verification of engineering, construction, testing and vendor compliance with design requirements, NRC regulations and code requirements. Ilowever, there can be no assur-ance that such deficiencies will not be foimd. See Imlnstry Prohicms. Various interrenors have attempted to assert a etmtention challenging the financial qualifications of the Company and certain other Joint Owners in light of the Fei nnary 7,1941 decision of the United States Court of Appeals for the District of Columbia Circuit in Netc Englaml Coalition on Nuclear Pollution c. NRC (No. 82-1531). That decision remanded to the NRC a regulation promulgated in 1952 which climinated a prior requirement for demonstrating that an electric utility applicant pos-sessed reasonable assurance of obtaining funds to cover estimated operation costs and costs of per-manently shutting the facility down. On pme 7,19S1, the NilC issued a Statement of Policy directing NilC licensing boards to treat the remanded regulation as valid insofar as it applied to operating license proceedings pending the outcome of a then pending rulemaking proceeding before the NRC. On August 16,19st, the NRC adopted a final rule obviating the need to demonstrate financial qualifi-cations in connection with the issuance of an operating license. An appeal of the pmmulgation of this mle by the NilC has recently been filed in the United States Court of Appeals for the District of Cohimbia Circuit. The Cmupany cannot predict what eficet the eventual resolution of this matter will have on the licensing proceedings. Rate Treatment, The timing and extent of recovery by the Company of the cost of the Seabrook Plant from ratepayers has become a major po!itical issue in New Hampshire. Under a so-called anti-CWIP statute enacted into New Ilampshire law in 1979 pmhibiting the reflection in rates of con-struction wmk in progress, Unit 1 of the Seabrook Plant may not be reflected in rates until completion of its construction and commencement of commercial operation. The Company cannot predict what rate increases will be granted, but anticipates that the costs of Unit I will be phased into rates on some basis. The Company is also unable to predict what effect any sneh rate increases would have on the demand for electricity. On July 23,19st the Company announced that it would seek to recover through rates no more than its actual share of a $1.5 billion aggregate cost of cemstruction of Unit 1. contingent upon (1) the occurrence of no catastrophic developments clearly outside the control of con-stmetion management and (2) the timely receipt of regulatory appmvals by the Joint Owners for financing the construction completion costs and for the change in management structure. See Other Scabrook Participants for the current status of regulatory approvals. The Company believes that its acceptance of a limit on the total cost of the Unit for ratemaking purposes should increase the feasi-bility of phasing Unit 1 into rates over a period of years on an acceptable basis. A phase-in of Unit I could result in the deferral by the Company of very large ammmts of revenue which would have been collected had the entire cost of Unit 1 been placed into rates immediately. This deferral, and the Company's external I'mancing requirements, increase substantiallv if the phase-in is prolonged or the cost of the Unit increases. The Company's financing plan d under Financinc-Fice-Year Procram below assumes that its share of such cost of Seahrook Unit I will be reflected in rates on a phased-in basis after the Unit begins commercial operation, currentiv ' estimated to be in October 19s6. The Company believes that based on these assumptions Unit l could be phased into rates over a number of years, with annual increases of about IFe plus a yearly ~ inflation adjustment of about 5Tc. The ultimate secovery of deferred revenues that would result from a phase-in would require that the Company obtain rate increases each year for a number of years 5
beyond the 1955-1959 period discussed below under Financing- Fire Year Progrum. The Company cannot predict whether cumulative rate increases of a size required to recover the Company's invest-ment in the Unit will be granted by the New Ilampshire Public Utilities Commission ("NIIPUC). l The amount of the costs of constructing Unit 1 includible in the Company's rate base upon com-l pletion of Unit I is expected to be the subject of controversy in the NIIPUC proceeding considering I the matter. Allegations have been made that construction of Unit I has been mismanaged and that such mismanagement has resulted in excessively high costs. See Item 3. Other. Only emts found by the NIIPUC to have been prudently incurred would be included in the Company's rate base, future carnings would be adversely affected to the extent that the full costs of Unit I were not reilected in rates. The Company's cash flow will improve as Seabrook Unit 1 is reflected in rates. Delay in com-mercial operation of Unit 1 or in the reflection in rates of a substantial portion of the costs of the Unit would require the Company to obtain significant amotmts of external financing. See Financing below. There can be no assurance that the Company would be able to obtain such financing. Even after in-clusion of Unit 1 in rate base, any outage of the Unit of such a nature or duration as to result in its removal from rate base would impose significant burdens on the Company because Unit I and com-mon facilities will constitute more than half of the Company's total assets and will be the source of a significan: portion of its electric generating capacity. Regulatory Approvals for Completion of Construction. All of the approvals and permits from various state and federal regulatory bodies required for completion of cimstruction of the Seabrook Plant have been obtained and, except as described below and except for the regulatory proceedings related to financings described below under Other Scabrook Participants and under item 3, Other Ncte llampshire Proceedinge, there are no appeals or proceedings related thereto currently being actively prosecuted. Ilowever, continued opposition at the regulatory level and thmuch court appeals is likely. The process of obtaining these approvals and permits has been long and complex, has been consistently opimsed by a number of intervening groups, has witnessed demonstrations at the Seabrook Plant site, and has been plagued by lengthy delays which have resulted in greatly increased costs for the Seabrook Plant. An addition to the 315 KV transmission grid in .\fassachusetts is needed in connection with the operation of the Seahnmk Plant. The addition has been approved by .\fassachusetts regulatory authorities, but there are emirt appeals opposing it, and additional regulatory and c<mrt proceedings are pending. In connection with the implementation of the N.H. Yankee arrangements for etmstruction and operation of the Seahnmk Plant described almve under Scahrook Nuclear Plant- Netc Ilampshiro j Yankee, it will be necessary to obtain the approval of the N11C and various state regulatory Imdies. On October 12,19S1, the NIIPUC issued an order authorizing N.II. Yankee to engage in business as a public utility for the purpose of acting as management agent for the construction of the Seabrook Plant. The Company anticipates that interrenor groups which have consistently opposed the con- I struction and licensing of the Seabrook Plant will actively oppose the granting of such approvals, particularly before the llc. The Company cannot predict the impact which such opposition may have on the timing or outcome of the proceedings in which such approvals are sought. Other Seahrook Participants. Other Seabnmk Joint Owners subject to the jurisdiction of regu-latory authorities in Connecticut, .\laine, Vermont and Afassachusetts have been or are presently in-volved in proceedings in each state regarding the Seabrook Plant. The Company cannot predict the outmme of these proceedings. In November 19st, the Connecticut Department of Public Utility Control determined that the construction of Seabrook Unit 1 is economically viable at the then current estimates of cost and 6 l'
schedule and that the Connecticut Joint Owners (which hold an aggregate of 21.5% of the owner-ship interests) should continue their participation in Seabrook Unit 1. In late December 19S4, the l Department declined to reconsider its decision. In the case of The United Illuminating Company, i I regulatory approval of a portion of its financing plan is contingent upon removal of expenditure limitations on the construction of Unit 1 by hiay 5,19S5. On December 28,19st the Vermont Public Service Board (the "VPSB") rendered a 2-1 decision approving the continued participation of the Vermont utilities (which hold aa aggregate of 2.0% of the ownership interests) in Seabrook Unit 1 on the condition that the financing of all Joint Owners for the cash completion cost of the Unit be in place by April 15,1955. The VPSB decided that the cash cost to complete the Unit was less than the cost of other power sources, assuming a Unit I commercial opera-tion date as late as August 19S7 and a cost to complete of between $1 billion and $1.3 billion. The VPSB scheduled a hearing for April 16,19S5 to review the status of the fmancing plans of all Joint Owners and various other matters relating to Unit 1. f On January 15, 1985, the VPSB denied a motion for reconsideration of its December 2S,19S1 order. The VPSB reaffirmed its earlier decision that "under the most optimistic of circumstances [Seabrook Unit 1] is marginally economic, and, if [Seabrook Unit 1] cannot be securely prefinanced by mid April,1985, then it should be cancelled." The VPSB stated that, if Unit 1 is not completely prefinanced and the funds for that purpose are not isolated from the potential bankruptcy of the Com-pany by April 15,19S5, Unit I will not be completed in a timely and economic manner .md it is therefore better for Vermont ratepayers that Unit 1 be cancelled. On December 13, 1984, the Afaine Public Utilities Commission ("AlPUC") ordered the three hiaine utilities (which hold an aggregate of 9.7% of the ownership interests) to obtain " credible, firm offers" to buy their interests in Unit 1 by January 11,19S5. By that date, offers to buy about one-third of the combined ownership interests were received, although at prices lower than antici-pated by the hlPUC. The hfaine utilities have appealed the December 13 order to the Alaine Supreme Court. In addition, the hiaine utilities have filed briefs with the h!PUC which question the authority of the h!PUC to order disengagement from the Seabrook Project. Pursuant to the hfPUC's order of January 16, 1985, which directed the hiaine utilities to file by February 8,1955 plans for " disengaging" from the Seabrook Project, the hiaine utilities submitted on that date their analyses of disengagement alternatives and a further report of sales efforts with respect to their interests in Unit 1. The January 16,19S5 order also provided that comments on the disengage-ment alternativer could be filed by February 22,19S5 and that the 51PUC would at an indefinite future date issue another order on disengagement. The Afaine utilities have affirmed their intention to continue to meet their c<mtractual obligations under the Joint Ownership Agreement in the ab-sence of an unstayed legally binding order of the .SIPUC requiring the utilities not to make their payments. The Afassachusetts Department of Public Utilities, at the request of certain of the Alassa-chusetts utilities which are Joint Owners of the Seabrook Plant (which hold an aggregate of 26.0Tc of the ownership interests), is investigating three issues common of all of the utilities: the estimated cost of completing Seabrook Unit 1; the estimated completion date of the Unit; and the cost of the electricity to be generated by the Unit. An order in this proceeding is expected by Alarch 31,19S5, and the facts established in this proceeding will be used in the separate proceedings on each of the Alassachusetts' utilities pmposed plans to finance their share of the cost to complete Unit 1. Orders approving the hiassachusetts Joint Owners' financings may not be received until the end of April 19S5. If, due to regulatory action, financial difficulties or any other reason, one or more of the other Seabrook Plant participants should be unable or unwilling to fulfill their contractual commitments to 7
pay on a timely basis their share of Unit 1 ccmstruction costs, completion of Unit I would be jeopar-dized. If Unit I were not mmpleted, it would be very difficult for the Company to avoid proceedings under the Bankruptcy Code. Ernurance. The Federal Price-Anderson Act provides, among other things, that the maximum liability for damages resultin;: from a nuclear incident would be the greater of the maximum amount of financial protection required by the NRC to be carried by licensees or $5S5.000,000. As required by NRC regulations, prior to operation of the Seabrook Plant, the owners of the Seabrook Plant will insure against this risk by purchasing the maximum available private insurance (presently
$100.000,000), the balance to be covered by retrospective premium insurance and by an indemnity agreement with the NRC. Under amendments to the Price-Anderson Act, owners of operating nuclear facilities may be assessed a retrospective premiu:n of up to $5,000,000 for each reactor owned in the event of any one nuclear incident occurring at any reactor in the United States, with a maximum assessment of $10,000,000 per year per reactor owned. As a part owner of other operating New En-gland nuclear facilities (see Joint Pro /ccts below), the Company would be obligated to pay its pro-portionate share of any such assessments, which presently amounts to a maximum of $1,050,000 per incident. While no final evaluation of the claims being asserted as a result of the incident at Three Mile Island is yet possible, the Company does not anticipate any assessments being levied under these provisions as a result of that incident.
Seabrook Unit 2. Expenditures on Seabrook Unit 2 have been reduced to a minimal level. There is no viable plan for the completion of construction of Unit 2 at this time, and the Company does not have current estimates of the Unit's cost or commercial operation date. Under the Joint Ownership Agreement, cancellation of Unit 2 can only b3 effected by the vote of at least SOTo of the ownership interests, so that cancellation requires the Company's concurrence in such a vote. Ilowever, the Joint Ownership Agreement requires the vote of at least 51Tc of the ownership interests to resume construction of Unit 2, and resumption of construction by the present Joint Owners is extremely unlikely. In June 19S4 the New IIampshire Supreme Court ruled that the New Ilampshire anti-CWIP statute pmhibits recovery from ratepayers of any of the Company's investment in the cancelled Pilgrim Unit 2 generating plant located in Massachusetts. The Company has a 3.47To interest in that plant (an investment of approximately $16 million), which was cancelled by the lead owner in 19S1, and the Company had filed a petition with the NIIPUC in December 1983 seeking recovery of its investment. The Supreme Court expressly did not reach the question of whether the statute, as so interpreted, was constitutional, or whether the Company could receive a higher rate of return based on additional risk to investors represented by the inability to recover investments in cancelled plants due to the anti-CWIP statute. If allowed to do so, the Company intends to establish the requisite factual record in proceedings before the NIIPUC and then seek a final determination by the Court of the constitutional issues. The Company believes that a final judicial determination of the recover-ability of its Pilgrim Unit 2 investment will not be made before the end of 19S5. I Ilowever, even if the constitutional issues were to be resolved favorably, the Company cannot predict what action the NIIPUC wouhl take regarding either the Company's Pilgrim Unit 2 invest-ment or the Company's Seabrook Unit 2 investment if Seabrook Unit 2 is cancelled. If the NHPUC denied recovery and subsequent administrative and judicial appeals, if any, were unsuccessful, the Company would be required to charge the unrecovered cost of the units against earnings when such denial become final. The amount charged against earnings could substantially reduce the Company's retained earnings; the precise amount would depend upon a number of factors, including, in the case of Seabrook Unit 2, the possible allocation of some costs to Seabrook Unit 1, the amount of cancellation charges resulting from negotiations in connection with contract terminations and salvage. The Com-pany estimates that the amotmt of the after-tax charge against earnings made in the case of Seabrook l l Unit 2 could approximate its present investment in Seabrook Unit 2 ($301,900,000 at December 31, I 19S4). 8
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1
Effective hfarch 1,19%i, the Company ceased capitalization of all costs, including AFUDC, related to Seabrook Unit 2. The effect of this decision was to reduce 1954 net income by approximately $35,200,000. Construction Program The Company's aggregate construction program for the five-year period 1955-1959, which will be subject to continuing review and adjustment throughout the period, is currently esti-mated to be about $616,100,000 (excluding AFUDC). The following table sets forth the Company's estimated construction expenditures for the period 1955-1959, and is based on current construction schedules and cost projections (eteluding AFUDC of approximately $435,700,000): Estimated Construction Expenditures 19S5-19S9 (Millions of Dollars) Generating Facilities 19S5 19SG-1989 Company's Share of Seabrook Unit 1 Plant $150.8 $114.1 Nuclear Fuel 11.4 43.1 Total 192.2 157.2 Other Generation 31.'1 67.1 Total Generating Facilities 223.S 224.3 Transmission Facilities 2.2 33.4 Distribution and General Facilities 23.3 109.1 Total $249.3 $366.S The aggregate amotmt of the Company's estimated construction program for each of the years 1985-19S9 is as follows: 19S5 $219,300,000 19S6 . 157,100,000 19S7. 68,800,000 19SS. 69,000,000 19S9. 71.900,000 TotaI $616,100,000 Actual construction expenditures have substantially exceeded past estimates and could exceed I these estimates. See Scabrook Nuclear Plant above. It is also possible that additiona expenditures may be required to meet regulatory and environmental requirements at the Seabrook Plant and the Company's other generating facilities. l Financing Liquidity Crisis. Following announcement of the substantial increase in the estimated cost of the Seabrook Plant on Alarch 1,19S4, the Company's commercial banks indicated that they were unwilling to make advances under their $160,000,000 Revolving Credit Agreement with the Company (under which no amounts were outstanding) unless the Company obtained back-up sources of credit. Because funds were no longer available to the Company under the Revolving Credit Agreement, it was necessary for the Company to commence strict cash conservation measures which included a vote by the Board of Directors on April 19,19S4 to omit the quarterly dividends payable on hiay 15, 1984 on shares of Common and Preferred Stocks and suspension on April IS,19S4 of payment of the 9
' Company's share of Seabrook Plant construction costs. The Company reduced non-Seabrook crm-struction, began a program of reducing the number of non-Scabrook employees and reduced the salaries of esecutive ofIicers aml certain other salaried employees. The Company ceased the oibro-coal conversion of three 5011W units at its Schiller Station, which had been scheduled to be com-pleted by the end of 1981. The payment of principal in the ammmt of 85.000 000 was not made when due under the Company's Acceptance and Stand-By Revolving Credit Facility Agreement with cer-tain banks. Consequently, the banks terminated their commitments to provide further loans tmder this Agreement. As a result of the foregoing nonpayment, the commercial banks terminated their commitment to make loans under the llevolving Credit Agreement. The Company did not pay when due the hfay 1,19S1 installment on its Nuclear Afaterial Lease and Scenrity Agreement with PruLease, Inc. under which a horrowing of $50,000,000 was outstanding secured by a lien on the Company's interest in nuclear fuel for the Seabrook Plant. In consequence, Prulease, Inc. terminated the Agreement and demanded payment of all outstanding unpaid rents, the outstanding principal of all borrowings and all additional losses, damages and espenses associated with the Company's actions. The foregoing payment defatdts were cured on Jmie 20,19st when the Company sold $90R000 principal amount of its Secured Exchangeable Promissory Notes 20Tc due 1985 and applied a portion of the proceeds toward the payment of outstanding debts. The Company also defeired paying half of a New if ampshir franchise tax payment in the amount of approximately $2.000.000 for 30 days and deferred other payments, including payments to con-tractors for the Seabrook Plant and for the Schiller Station coal conversion and payments to its coal supplier. On August 21.19S1, the Company signed agreements with its existing lenders which restructured the Company's indebtedness held by banks and its agreement with Prul. case, Inc. This restructuring extended the maturity of an aggregate of $~5 million of bank debt maturing in 199-1 to Afay 31.19% In addition, the Company obtained the agreement of UE&C to the estension of approximately
$20.5 million of credit to the Company: this amount is due on Af ay 31, 1955 and is subject to the same conditions and rights of acceleration as the bank debt and Prulcase, Inc. financing. Esten-sion of the maturity of any of these financings is dependent upon estension of the others on terms satisfactory to each lender.
On August 21,19S1, the Company aho signed an agreement providing until Afay 3L 19% a 535 million revohing credit facility secured by the Company's acemmts receivable. This facility has the same conditions as th" other agreements described above and numerous additional conditions to the making of any loans under the facility. These conditions are such that. as a result of the completion of themI' ancing in December 19S1, the Company cannot male nse of this facility. The foregoing agreements cimtain prohibitions on additional indebtedness, negative pledge clauses and covenants by the Company not to redeem or purchase any shares of its capital stock (including the making of sinking fund payments on any series of its Preferred Stocks) unless the Company has retired all of its loans from the financing institutions and terminated the revolving credit facility. The effect of this latter restriction is to pres ent the Company from paying dividends on shares of Common Stock until the financing institutions' debt is repaid. since. under the Company's Articles of Agreement, no dividends on shares of Common Stock may he paid so long as any arrearage exists in respect of dividends on, or sinking fund pay ments in respect of any series of, the Company's Prefe Stocks. The Company's agreement with certain of its lenders contains further restrictions on the pay-ment of dividends. In its order approving the December 1951 financing. the NIIPl'C imposed a condition that the Company not pay preferred and common disidends until authorized to do so by further NilPUC mder. As a result of the Company's omission since April 1941 of quarterly disidends payable on shares of its Preferred Stockt the holders of shaies of the Preferred Stocks have the to elect a maiority of the Board of Directors of the Company. See Note S of Notes to Financial Statements. 10 i
l l l The restructured agreements with the Company s lenders contain provisions to the effect that payment of the debt may be demanded immediately if the financing described under Netchrook Plan below is not etmsummated by February 28, 1955, current estimates of the cost and completion date of Seabrook Unit 1 exceed earlier estimates, or certain minimum spending levels for construction at Seabrook Unit 1 are not achieved by February 28,19% The Company is in the process of seeking amendments of these and certain other provisions of these agreements and waivers of certain de-faults. It is likely that further amendments will be needed by the end of Alarch 10% The Company is also negotiating the extension of the Stay 31,19S5 maturity date of these agreements, other than 1 the secured revolving credit facility, which the Company proposes to terminate. In December 1981 the Company issued $425,000,000 of debentures and warrants to purchase common stock. In addition to converting $90,000,000 of short-term notes to long-term debt, the finan-cing provided cash proceeds of approximately $275,000,000, which the Company estimates will pm-vide for its working capital needs until the estimated emnpletion date of Seabrook Unit 1. Netchrook Plan. As part of a plan to complete the construction of Unit 1 of the Seabrook Plant each ceabrook Joint Owner submitted to the other Joint Owners (i) a plan for raising funds sufficient to pay for such Joint Owner's share of the remaining cost to complete Unit I and (ii) a schedule for regulatory approvals of such plan. The plans assume a cash cost to complete construction of Unit 1 of $1.0 billion and a commercial operation date in October 1987. Each of such plans and schedules was approved by the Joint Owners. In order to obtain such approval cach Joint Owner had to evi-dence that the required financing would be available by satisfying one of the following criteria: (1) the Joint Owner has debt securities rated A- or better by both Afoody's Investors Service, Inc. and Standard & Poor's Corporation; or (2) the Joint Owner has a commitment from the Rural Electrification Administration to guarantee loans which will fund that owner's share of the cost to complete Unit 1; or (3) the Joint Owner provides an irrevocable letter of credit from a financial institution (the long-term debt of which is rated A or better by both .Sfoody's Investors Service, Inc. and Standard
& Poor's Corporation) sufIlcient to fund that owner's share of the cost to complete Unit 1 when that owner cannot otherwise obtain funds; or (4) the Joint Owner agrees to put into an escrow account an amount of cash which, together with interest thereon, would be sufficient to pay its share of the cost to complete Unit 1.
To fulfill its commitment under this Newbrook Plan. the Company intends to issue in the second quarter of 1955 up to $525 million principal amount of debt securities, designed to yield proceeds to the Company of $340 million. These securities will likely be of two types: deferred interest, third mortgage lxmds issued directly to the public (" dills") and third mortgage bonds issued to secure pollution control revenue lxmds to be issued by the New Ilampshire Industrial Development Author-ity on behalf of the Company. It is contemplated that the Dil3S will not require interest payments for a period of up to two years and will be issued at a disemmt from their principal amount. The discount is designed to approximate compmmd interest on the amount paid by the purchasers of the lumds for the period during which interest is not paid. Thereafter interest would accrue and be payable semi-annually. All of these lxmds would be secured by a third mortgage on substantially all of the Companfs property located in New Ilampshire. The proceeds received by the Company after underwriting discounts and expenses will enable the Company to deposit into the escrow ac-count funds sufficient to pay its share of the remaining estimated construction costs of Seabrook Unit 1. 11
i i The issuance of these securities is currently the subject of protracted hearings before the NIIPUC.
' See Item 3, Other New flampshire Proceedings-NilPUC Approvals of Financings and Appeals.
The Company expects an order in this proceeding by .Sfarch 31,19S5. Ilowever, due to an uncertainty in New Ilampshire law, the Company may not be able to issue such securities until all appeals of the NIIPUC order have been decided by the New Ilampshire Supreme Court. Such a decision may not be rendered for two months or more after the NIIPUC order has been issued. Certain other regulatory bodies have imposed deadlines (see Seabrook Nuclear Plant-Other Seabrook Participants above) that require that all Joint Owners complete their financing for Unit 1 by April 15,1995 or that require removal of the expenditure limit on the construction of Unit 1 by Afay 5,19S5. If the securities are not issued by April 15,19S5 or the construction limit is not lifted by Afay 5,19S5, certain other Joint Owners may have to return to their commissions for further hearings or new proceedings, the result of which cannot be predicted. In the event of a negative ruling by the NIIPUC regarding the issuance of these securities or the inability of the Joint Owners to complete their financings, Seabrook Unit 1 may not be completed and it will be difficult for the Company to avoid proceedings imder the Bankruptcy Code. FiceJear Program. The Company's external financing requirements for the period 19S5-19S9 total approximately $6S3 million. Through a financing completed in December 1984, the Company has provided for its estimated working capital needs until the estimated completion date of Seabrook Unit 1. The majority of the external financing is needed for funding construction expenditures cf $616.1 million and refinancing of debt maturities and payment of sinking fund requirements of
$410.0 million. It is anticipated that the balance of funds required will be generated internally in the years 19S8 and 19S9. As discussed above, the Company is seeking authorization from the NIIPUC to raise at least SMO.0 million for expenditures associated with the construction of Seahrook Unit 1.
These external financing requirements assume that (a) the rate increase associated with Seabrook Unit 1 will be 10% per year commencing in late 1986 (and in addition that the Company's rates are increased 5% per year to reflect inflation), (b) the Company's lenders extend the maturity of $125 million of indebtedness maturing on .Tlay 31,1985 to 1989, but the remaining $20.5 million maturing on Afay 31,1985 will not be extended beyond 1987, (c) the cost to complete Seabrook Ueit I does not exceed $SS2 million, and (d) approximately $100 million of the funds raised by the Company for the prefunding of its share of the cost to complete the Unit will be returned to the Company in late 1986. The Company expects that to meet its estimated capital requirements for the period 19S5-1989 the external financings set forth in the table below will be necessary: 19S5 . $340,000,000 19S6 - 19S7 80,500,000 1988 140,500,000 1989 122,000,000 l Total $6S3,000,000 l The external financing requirements set forth above assume no payment of any Preferred Stock dividends before the first quarter of 19S7. If the Company were to pay such dividends before the first quarter of 19S7, additional external financing would be required. Achieving the financing program outlined above depends upon external financing u the securities markets, since the Company is unable to obtain any significant amount of additional short-term bank j credit, and also depends on many other factors. some of which are not within the Company's control. As a result of the Company's omission of dividends on its Common and Preferred Stocks, the Company i does not believe it could presently sell any additional shares of its Preferred or Common Stocks on reasonable terms. Consequently, at least until the Company has paid all arrearages in dividends on shares of its Preferred Stocks, the Company is required to obtain all of its external financing require-ments through the issuance of debt instruments in the securities markets. 12
l i l Mortgage Bonds. Due to certain restrictions in the Company's First hfortgage Indenture, no significant amount of First Afortgage Bonds may be issued thereunder until an operating license is obtained for Unit 1 of the Seabrook Plant. Because of these restrictions in the Company's First Afortgage Indenture, the Company entered i into the General and Refunding Afortgage Indenture dated as of August 15,1978 (the "G&R Inden-ture"), constituting a second mortgage on the Company's properties to secure General and Refunding hfortgage Bonds (the "C&R Bonds"), pursuant to which the Company has issued and sold an aggre-gate of $223,000,000 of G&R Bonds, of which .$212,080,000 is outstanding. This amount does not in-chide $17,563,000 aggregate principal amount of G&R Bonds, Series G Variable Rate due 19S7 (the
" Series G Bonds") issued and pledged as collateral under the Company's nuclear fuel financing agreement with PruLease, Inc. described above under Financing - Liquidity Crisis. The G&R Indenture requires that, in order to issue additional G&R Bonds, the earnings coverage of interest on the First Afortgage Bonds and G&R Bons be at least 2.0. At December 31,19S4, the earnings coverage test permitted the issuance of $179,000,000 principal amount of additional G&R Bonds (20% annual interest rate assumed).
t~ Dehentures. The Company has outstanding $700.000,000 principal amount of debentures. The debentures are unsecured long-term obligations of the Company and do not require the Company to maintain any asset ratio or cash reserves. Under limitations ccmtained in the Company's Articles 3 of Agreement, the Company could issue at December 31,19S4 approximately $4S,000,000 of long-term unsecured indebtedness and $235,000,000 of long or short-term unsecured indebtedness. The general
- effect of the provisions in the Articles of Agreement is to limit the cumulative amount of unsecured term indebtedness incurred during a stated period to an aggregate amount of secured and unsecured indebtedness (other than indebtedness issued for refundings) not exceeding 60% of net plant addi-tions (subject to adjustments) during the period. In addition the Company can issue long or short-term unsecured indebtedness not in excess of 20% of the total of secured indebtedness and capital and surplus.
i Preferred Stock. Under the Company's Articles of Agreement, additional shares of Preferred Stock may be issued without the afIlrmative vote of the holders of a majority of the outstanding shares of either class of the Preferred Stock provided that the ratio of earnings to fixed charges and preferred dividends, including dividends on shares of Preferred Stock to be issued, is at least 1.50. At December 31,19S4, the Company could issue, without such vote of the holders of shares of Preferred Stock, approximately $202,000,000 of Preferred Stock (17% annual dividend rate assumed). However, in view of the omission of dividends on the Company's Preferred Stock (see Financing-Liquidity Crisis above and Note 8 of Notes to Financial Statements) and the failure to make sinking fund payments on certain series of the Company's Sinking Fund Preferred Stocks, the Company does not believe that it will be able to sell any additional shares of its Preferred Stocks on reasonable terms until all dividend arrearages have been paid. The Company's restructured agreements with its lenders and orders of the NHPUC contain restrictions on the payment of dividends on shares of Common and Preferred Stocks and on the making of sinking fund payments. 1 New England Power Pool . A New England Power Pool ("NEPOOL") Agreement, to which the major investor-owned utilities in New England, including the Company, and certain municipal and cooperative utilities are parties, has been in effect since 1971. The NEPOOL Agreement provides for joint planning and operation of generating and transmission 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, operation and dispatching of electric generating capacity for New England is done on a regional basis under the NEPOOL Agreement. At the time of the 1984-19S5 NEPOOL winter peak, the New England utilities had about 21,745 AlW of installed capacity and pur-2 chases to meet the New England peak load of about 16,854 AlW. 4 13 i l
The Company's capability responsibility under the NEPOOL Agreement involves carrying an allo-cated share of a New England capacity requirement which is determined for each period based on certain regional reliability criteria. Assuming the completion of Seabrook Unit 1, it is expected that the Company's capacity will be sufficient, through its own generating facilities, through its participation in certain jointly-owned generating facilities, and through purchases of capacity and energy from other utilities, to meet its NEPOOL Agreement obligations at least until the 1990's. Canadian Potter. NEPOOL, on behalf of its members including the Company, has entered into an Interconnection Agreement with Ilydro-Quebec, a Canadian utility operating in the Province of Quebec, which provides for construction of an interconnection between the electrical systems of New England and Quebec. Those parties have also entered into an Energy Contract and an Energy Banking Agreement; the former obligates IIydro-Quebec to offer NEPOOL participants up to 33 million h1WII of surplus energy during an eleven-year term commencing September 1,19S6, and the latter provides for energy transfers between the two systems. NEPOOL has negotiated an additional purchase from .IIydro-Quebec of 7 million htWII per year for a ten-year period starting in 1990. Work is proceeding on licensing and permitting for this purchase. In 19S4 Ilydro-Quebec and the Vermont Department of Public Service signed a contract for the sale by Ilydro-Quebec to Vermont for a ten-year period beginning September 1,19S5 of 150 h1W of firm power. Joint Projects The Company is a part owner with other New England electric utilities of four nuclear generating companies. The Company owns a 7% interest in Yankee Atomic Electric Company, a 5% interest in Connecticut Yankee Atomic Power Company, a 5% interest in hiaine 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 capabilities of 176 htW,5S2 hiW,846 hiW and 528 h1W, respectively. The stockholders of each of the four nuclear generating companies are entitled to the entire output of the plant in proportion to their respective ownerships, subject to certain sales agree-ments with other utilities, and are obligated to pay for such output their proportionate shares of the generating company's operating expenses and returns on invested capital. fhey are also obligated to pay, when called upon by the individual generating company, their proportionate shares of such gen-erating company's capital requirements not provided from outside financing. The Company is participating on a tenancy-in-common basis with other New England utilities in the ownership of two nuclear generating units under construction (assuming no further construction expenditures by the Company for Seabrook Unit 2): Company Share Estimated Scheduled Construction Cost (2)(4) Completion Capacity Capacity Total Per Type Date(l)(2) MW Percent (2) MW(2)(3) (Millions) KW Seabrook Unit 1 ... Nuclear 10/86 1,150 35.56942 409.05 $1,907.7 $4,664 (New IIampshire) hiillstone Unit 3 Nuclear 5/86 1,150 2.8475 32.7 $ 127.3 $3,893 (Connecticut) (1) These completion dates have been deferred from time to time in the past, and additional deferrals may occur due to licensing and regulatory delays, the financial condition of joint owners of the units, economic conditions and other factors. Due to the time required for the construction of generating facilities and the completion of licensing and regulatory proceedings relating thereto, substantial investments in the above units have been and will be required prior to the completion of licensing and regulatory proceedings. There is no assurance that all necessary approvals, permits or licenses will be obtained or, if obtained, will not be modified or revoked. 14
(2) See Seabrook Nuclear Plant and Construction Program above and item 3, Other New Hampshire Proceedings below. The total cost and cost per KW of the Company's mvnership interest in Unit 3 of the Afillstone Plant has been calculated based uixm the most recent estimate of cost and commercial operation made by the principal owner in September 19S4. (3) Pursuant to arrangements with two Seabrook participants, the Company is obligated to purchase from such participants, if so requested, up to a total of 75 megawatts of capacity and related energy from Unit I for the first three years of commercial operation and 54 megawatts of capacity and related energy from Unit I for the next seven years. (4) Inchiding the cost of the initial nuclear fuel and AFUDC on the estimated costs of imfinished construction. Fuel Supply For the year ended December 31,19S1, the Company's firm net output was derived 44.8To from oil,39.4To from coal,9.0To from nuclear,6.4To from hydro and 0.4% from other sources. Oil The New England electric utilities, inchiding the Company, make greater use of fuel oil for generation of power than utilities in any other region of the country. Afost fuel oil supplies of the New England utilities are derived from foreign sources and subject to price fluctuations and interference by foreign governments. Fuel oil for the Company's oil burning Newington and Schiller Stations is sup-plied by a contract with one supplier which expires on January 31,1956 and by spot oil purchase. The fuel storage capacity for these plants is approximately 30 days operating at full load, and inventory varies substantially depending upon oil shipments. During the 52-week period ending December 31, 19S4, the average inventory was approximately 12 days operating at full load. Coal. Coal for the Company's Aferrimack Station is presently being furnished from West Virginia sources under a contract which expires in .\farch,19sS. The contract generally provides that a 60-90 day supply of coal is to be maintained for the Company, that the base price of the coal may be changed by the seller annually but that the Company's disagreement with the change will result in termination of the contract at the end of the contract year, and that the price of the coal is subject to certain adjustments for changes in the seller's costs. The Company's policy is to have a 60-90 day supply of coal maintained for the .\ferrimack Station depending on time of year and potential mine labor work stoppages. On December 31,1984, a 97-day supply was on hand. Aferrimack Station presently requires approximately 1,000,000 tons of coal per year. Two units of the Company's Schiller Station are in the process of being converted to burn coal with conversit , of a third unit having been completed in 19S4. Coal for Schiller Station is presently being furnished from Virginia sources under a contract which expires in November 19S8. The contract generally provides that an adequate supply is maintained for the Company, that the base price of the coal may change annually up or down and that other price comnonents of the coal are subject to cer-tain adjustments for changes in the seller's costs. The coal inventory requirements for the Schiller units are in the process of being determined. On December 31,19S4, a 68-day supply of coal for the single i unit already converted was on hand. Schiller Station, when all three units have been converted from oil to coal, will require approximately 400,000 tons of coal per year. The Company's 5ferrimack and Schiller coal units will require a total of approximately 1,400,000 tons of coal per year in 1956 and beyond. See Concersion from Oil to Coal below. The Company's approximate average costs of oil and coal for 19S0 through 1984 were as follows: Oil Per Oil Per Coal Per Coal Per Barrel Million BTU Ton Million BTU 19SO $22.S6 $3.67 $43.57 $1.60 19S1 30.58 4.92 47.14 1.71 19S2 26.49 4.24 51.79 1.89 19S3 26.55 4.52 53.17 1.99 1984 28.22 4.40 54.77 2.04 15
Nuclear. The nuclear fuel cycle consists of (1) the mining and milling of uranium ore into uranium concentrates, (2) the mnversion of uranium concentrates to uranium hexailuoride, (3) the emichment of uranium hexafluoride, (4) the fabrication of nuclear fuel assemblies and (5) the reprocessing, storage, or disposal of spent nuclear fuel. The Joint Owners of the Seabrook Plant have contracted for the nuclear fuel cycle materials and services required to commence operation of Unit 1 and to meet Unit l's requirements through 1990. Contracts for segments of the nuclear fuel cycle beyond 1990 will be required, and their availability, prices and terms cannot be predicted. As required by the Nuclear Waste Policy Act of 1992, the Seabrook Joint Owners plan to enter into a contract with the United States Department of Energy (" DOE"), prior to operation of the Sea-brook Plant, for the transport and disposal of Seabrook spent fuel at a national nuclear waste reposi-tory. Under the Act a national repository for nuclear waste is anticipated to be in operation by 1998; however, because of contingencies in the Act, the Company cannot predict whether the federal govern-ment will be able to provide interim storage or permanent disposal repositories for spent fuel and/or high level radioactive waste materials. The Seabrook Plant will have enough on-site storage to ac-commodate all spent fuel accumulated through the year 2000. The Company has been advised by the companies operating or constructing the other miclear generating stations in which the Company has an interest that they have contracted for certain seg-ments of the nuclear fuel cycle through various dates. The Company has further been advised that these four operating nuclear generating stations have or will have storage capacity to meet the spent fuel storage needs of the units through various dates ranging from 1990 to the late 1990s. Conversion from Oil to Coal In October,19S2, the NIIPUC adopted a settlement agreement designed to afford the Company a method of accelerated recovery of the capital costs associated with the conversion of the three Schiller Units from oil to coal burning (initially ordered by the NIIPUC in March 19S0) and to pro-vide incentives or penalties (as the case may be) depending utxm the completion dates of such con-version (originally scheduled to be completed by December 31,19S4). The Company suspended work on the conversion in April,19S4, as part of the Company's stringent cash conservation measures. On June 1,1934, the NIIPUC opened an investigation into the circumstances surrounding the suspension of the conversion activities. The Company recommenced the conversion activities effective July 2, 19S4. h is now estimated that the conversion will cost approximately $62 million, of which approxi-mately $50 million had been incurred as of L)ecember 31,19S4, and will be completed by mid-1985. The penalty provisions of the settlement agreement referred to above may, depending upon the decision of the NilPUC following conclusion of the investigation, become operative but the Company cannot now determine the amount of any penalties which may be assessed. Regulation The Company, as to retail rates, securities issues, and various other matters, is subject to the regu-latory authority of the NIIPUC. The Connecticut Department of Public Utility Control has limited jurisdiction 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 Vermont and Maine, the Company is subject to limited regulatory juris-diction in those states. The Company is also subject, as to some phases of its business, including accounts, certain rates, and licensing of its hydroelectric generating plants, to the jurisdiction of the Federal Energy Regulatory Commission ("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 jurisdiction of the NRC under the Atomic Energy Act of 1954, , particularly in regard to public health, safety, environmental and antitrust matters. See also Enciron-i mental Matters below. 16
National Energy Policy The Federal Public Utility Regulatory Policies Act of 1978 ("PURPA") requires state utility regulatory commissions to make determinations with respect to certain issues of utility regulation. The NIIPUC has accepted the recommendations of parties to a consultative process to adopt the PURPA Section 111 rate-making standards and the additional rate-making objectives of rate continuity, reve-nue stability and practicality of rates in principle and to the design of the lifeline rate for residential customers ordered by the NIIPUC. Implementation of certain of the PURPA rate-making standards has begtm in accordance with the results of the consultative process. Further decisions with respect to implementation were made in the Company's most recent retail rate case including the approval of a settlement agreement regarding rate structure, conservation and load management. Lifeline rate issues were also addsessed in the proceeding. The NIIPUC has also accepted the Company's pro-posed special industrial contract policy, with certain reservations, and a pilot targeted lifeline program. See Item 3, New flampshire - Retail Rate Proceedings. The NIIPUC initiated a proceeding to revise existing short-term rates and to establish long-term avoided cost rates to be paid for energy sold to the Company by small power producers and cogen-erators, and has approved a settlement agreement entered into by the parties to the proceeding. Environmental hiatters 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. 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 prevent or substantially increase the cost of construction and operation of generating plants and may require substantial investments in new equipment at existing generating plants. They may also require substantial investments which are not included in the estimated construction expenditures set forth under Consunction Program above. Air Qualittj Control. Pursuant to the Federal Clean Air Act of 1970, as amended, the State of New IIampshire acting through the New Ilampshire Air Resources Agency (" ARA") has adopted regulations containing standards limiting emissions of particulates, sulphur oxides and nitrogen oxides, which are generally designed to achieve and maintain federal primary ambient air quality standards. The Company believes that its fossil fuel generating units are being operated in compliance with ARA's regulations, with the exception of Unit 1 at the Company's hierrimack Station.
- Pursuant to the 1977 amendments to the Clean Air Act, ARA has proposed lists showing those areas of New IIampshire which have attained or failed to attain national ambient air quality standards, and revised the State implementation plan, which the Environmental Protection Agency (" EPA") has accepted. It does not appear that the revised State implementation plan will require the Company either to modify operations at any of its fossil fuel generating plants or to expend funds for additional air pollution c6ntrol equipment.
While coal now available and expected to be available in the future for the Company's hierrimack and Schiller Stations presently meets all applicable requirements, if more stringent requirements become effective which could not be met by such coal, the Company might have to install sulfur removal equipment at substantial capital cost or take such other actions as may be required by regulatory authorities. The installation of such equipment would increase operating costs and reduce the net capability of the units. 17 J
. . - - . . . . . . _-- _~ . . - - - _ .
The new permits for the two units at the Company's hierrimack Station issued in early 1984 placed more stringent limits on the opacity of the smokestack discha2ge. In November 19S4 par-ticulate emissions tests were. conducted on Unit I at the hierrimack Station following reports submitted to the ARA by the Company that indicated the opacity limits established in the new permits ,
; were being exceeded for that Unit. Unit 2 continues to meet the limits so established. Based upon a showing in the test report that actual emissions exceeded the allowable emission rate prescribed by New Ilampshire air quality regulations, the ARA issued, on January 31, 1955, a Notice of Violation and Order of Abatement. The Order of Abatement directed the Company to install within 36 months new pollution control equipment on Unit I for the permanent reduction of particulate emissions and to implement the interim compliance schedule proposed by the Company in December 19S4.
The conversion of Schiller Station from oil to coal discussed under Concersion from Oil to Coal above has required the Company to make expenditures for air quality control equipment which are reflected in the estimates set forth under Comfruction Program.
- Water Quality Control. The Company has received from EPA, or from the Afaine Department of Environmental Protection in the case of one generating station located in the State of hiaine in which the Company has an ownership interest, all permits required under the Federal Water Pollution Con-trol Act, a's amended, for discharges of thermal and other efIluents from its generating stations. Such permits have varying expiration dates and the Company has made and expects to make applications for renewal. The EPA issued effluent limitations guidelines for steam electric power plants based en application of the best practicable contml technology (to be met by July 1,1977) and of the best avail-
~
able technology economically achievable (to be met by July 1,1984), and alternate effluent standards with respect to thermal discharges from steam electric power plants. The guidelines and standards impose rigomus limitations upon the industry. An industry group filed an appeal in a Federal Court of
. Appeals challenging the guidelines and standards, and the Court of Appeals remanded the guidelines J and standards to the EPA for reconsideration of certain of them. The Company is in compliance with . the July 1,1977 guidelines and the best available technology eccmomically achievable efIluent limits specified in the Company's existing permits.
The Company has an ongoing requirement in the discharge permit for its hierrimack Station to monitor the effect of the plant's operation on the hierrimack River. The Company has thus far been able to show as required by the permit that the plant's present once-through cooling system does not
,. interfere with resident fish in the affected portion of the hierrimack 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 hierrimack River for the purpose of showing as required by the
- permit that the present cooling system does not interfere with migratory fish.
j The Company's construction and operation of the Seabrook Plant, including environmental con-siderations, is subject to regulation by the NRC and the EPA. See Scabrook Nuclear Plant above. . . Resource Conscrcation and Recocery Act. Pursuant to the Resource Conservation and Recovery Act of 1976, the EPA has issued regidations relative to the generation, transportation and disposal of ' 1 certain waste's. In addition, the New IIampshire Bureau of Ilazardous Waste Afanagement has similar
. regulations which have received final approval fmm the EPA. The Company has reviewed the appli-cation of these regulations to its operations and has complied with the applicable EPA and New IIamp-shire Burean of IIazardous Waste hianagement regulations.
. Other Encironmental Expenditurcs. At December 31,1984, the Company's share of expenditures for envimnmental protection facilities at the Seabrook Plant amounted to appmximately $109,500,000, the major portion of which was for facilities to reduce the thermal effect of the discharge of the Seabrook Plant condenser cooling system.
. Employees, Salaries and Wages -
The Company has approximately 2,200 employees, of whom 525 are employed by the New IIampshire Yankee Division and will become employees of New IIampshire Yankee when the re- , quired regulatory approvals are received. Five hundred forty of the Company's employees (none of i ! whom are employed by the New IIampshire Yankee Division) are represented by unions with which 18 m -. --- ------------ yw ow w.--- w .--5-ew-%-- iem-- n mrv-ry- -,,-.,.--.e7w.w-y+w -
- e,-- - - = --** - +.-y-- ,.---
the Company has contracts expiring on Afay 31,1985. These contracts provided for salary increases of 5.0% for the first year of the contract and an additional 5.0% effective June 1,19M. Salary increases are granted from time to time on a comparable basis to nonrepresented employees. Municipalities and Cooperatives New Hampshire law permits municipalities to engage in the production and sale of electricity, and to condemn the plant and property of any existing public utility which is located in the munici-pality. Afunicipalities may finance the ownership of new generating units of at least 25 MW and new transmission facilities of at least 69 KV through the issuance of municipal electric revenue bonds. Afunicipalities may also finance the ownership of generating units utilizing renewable resources of not greater than 80 AlW and related equipment and structures through the issuance of municipal small scale power facility bonds. The New IIampshire Electric Cooperative, Inc. ("NIIEC"), a cooperative association financed by the Rural Electrification Administration, as well as five small municipal electric utilities, operate in areas adjacent to areas served by the Company. NIIEC, which has a 2.17391 % ownership interest in the Seabrook Plant, currently purchases, as a wholesale customer, most of its electricity from the Company and is subject to regulation by the NIIPUC as a public utility. Wholesale Customers The Company sells power at wholesale to seven municipal and investor-owned electric utilities. On September 7,19S4, two of the Company's wholesale customers, Exeter & IIampton Electric Com-pany and Concord Electric Company, notified the Company that they intend to terminate their existing power purchase contracts with the Company effective September 30,1986. These terminations may require regulatory approvals. These customers have stated that they intend to negotiate power purchase contracts with a number of suppliers, including the Company. Such contracts may be subject to regulatory approvals. For the year ended December 31,19S4, the power sold to these two utilities accounted for approximately 12% of the Company's total power sales. The revenues derived from such sales accounted for approximately S% of the Company's total revenues from electric sales for the same period. On December 11,19S4 the Company filed a petition for a declaratory order with the FERC requesting that the contract terminations be delayed until November 1993. This filing was accepted and assigned a docket number. On January 14,19S5 these customers filed a petition to intervene in that docket and presented a motion to dismiss. The Company answered that motion on January 29,19S5. : The FERC has taken no action in the docket to date. Due to the extended period of time in which the terminations would take effect, the various alternatives that could be ordered by FERC or negotiated by the Company with these customers, and the potential for sale of the power to other wholesale customers should terminations occur, the Com-pany is unable to predict what effect termination of these contracts would have on its financial condition. For the year ended December 31, 1984, sales of power to the Company's other wholesale cus-tomers accounted for approximately 7% of the Company's total power sales and 5% of the Company's total revenues fmm electric sales; almost all of these sales are to NIIEC. Because of planned pur-
! chases of additional power capacity by NIIEC, the amount of power purchased by NHEC from the Company and the revenues derived therefrom is not expected to increase and may decrease in the future. The anticipated capital requirements shown in Financing-Fire Year Program above reflect the Company's estimate of the effect of these power capacity purchases by NHEC.
Seasonal Nature of Business Although the number of kilowatt-hours of electricity sold by the Company in its territory has l historically been somewhat less in the summer and fall than during the winter and spring, the l Company's electric revenues and operating income are dependent on a variety of other factors which l are not necessarily seasonal, including ecmtract sales of system and unit power to other electric com-l panies, changes in the Company's rates and charges, the extent and nature of transactions involving NEPOOL and general economic conditions. 19
\
a
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 Company has 1.lS3 A1W of its own generating capacity,9S .\lW from its participations in the four nuclear generating companies described under Item 1. Joint Projects and various e miracts fur purchased capacity. On January 21, 19M, the Company experienced its maximum one-hour prime peak load of 1,307 net 51W. The genera-tion and transmission systems of the major New England utilities, including the Company, are operated as if they were a single system. See Item 1, New England Forcer Pool. The Company has a two-unit coal-fired 465 A!W electric generating station (Nierrimack Station). from one unit of which the Company has agreed to sell to another utility 100 AlW on a single unit basis through April 1998, one oil-fired 42S .\lW electric generating station (Newington Station) and the Schiller Station (183 AlW). Two units of the Schiller Station are currently being converted from oil to coal. Conversion of a third unit has been annpleted, and the unit went into com-mercial operation on December 22,19St. Conversion work on the remaining two units is expceted to be completed by mid-19%. See Item 1, Conecrsion from Oil to Coal and Encironmental Matters with respect to Schiller Station. The Company also has other generating units with an aggregate effective capability of 203 AlW as follows: hydm-clettrie (65.5 AlW), combustion turbine (115 htW), diesel (3 AlW) and its share (19.5 AlW) of Wyman Unit 4, a 620 AlW oil-fired generating plant jointly-owned with other utilities and located in the State of .\f aine. The Company is also participating with other New England utilities in the design and construe-tion of two additional nuclear-fueled generating plants, Seabrook Unit 1 and .\lillstone Unit 3. See Item 1, Seabrook Nuclear Plant and Joint Projects. On December 31, 1984, the Company had about 1,721 pole-miles of transmission lines, 9,770 pole-miles of distribution lines, and 228 transmission and distribution substations having an aggregate capacity of 5.468,507 KVA. The Company owns office buildings in Alanchester, Portsmouth and Keene. It rents space in an office building in Alanchester for its principal offices under a 30-year lease expiring in 2002. Annual base rentals imder this lease are appmximately $1,330,000 subject to annual escalati,n. In 1984 the Company paid approximately $2,074,000. The Company also owns other structures used as service buildings, storehouses and garages and leases space for offices and other purposes at various locations in its service area. Substantially all of the properties of the Company are subject ta the lien of its First hfortgage Indenture and G&R Indenture and the Company has granted a lien on the Company's interest in nuclear fuel for the Seabrook Plant to PruLease, Inc. See Item 1, Financing. The principal pmperties 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. The transmission 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 minor defects, which do not, however, threaten to impair the right of the Company to maintain and operate its poles, wires and c(mduits. Item 3. LEGAL PROCEEDINGS New Ilampshire - Retail Rate Proceedings On January 30,19S4, the NIIPUC in a 2-to-1 decision authorized a $24,700,000 permanent annual increase in the Company's retail rates (which amounts to 74rc of the S33,400,000 increase originally requested). Because rates had been collected under bond at the $33,400,000 level since August 1,1933, the Company reftmded approximately $5,000,000 in February 1981 representing the difference between the amounts collected under the bonded rates and the amount that would have been collected had the I permanent rates then been in effect. 20
Tha NHPUC allowed the Company a 16.1% return on common equity. While the Company's requested attrition allowance of 1.25% was not accepted, the decision provided for a step adjustment in resenues, as of July 1,1984, for certain rate base additions and increased expenses. On June 11,1984, ) the Company notified the NIIPUC that it would not file for the step adjustment. The majority decision stated that the NIIPUC was entitled to review the Company's manage-rnent of construction at the Seabrook Plant and that, should the circumstances warrant, a proceeding would be opened to investigate the management of the Seabrook construction program. In a dissenting opinion, one commissioner stated that she would lower the allowed return on common equity to 14.54%
, (which would reduce the rate increase to $19,500,000) to reflect a judgment that management of the Company has been deficient in that, among other things, it failed to develop more current and definitive cost and schedule estimates than those contained in the November 19S2 estimates developed by 8
United Engineers & Constructors, Inc., the Seabrook Plant's architect / engineer. See Item I, Seahrook Nuclear Plant - Construction. Other New IIampshire Proceedings While the NHPUC instituted a proceeding in late 1933 to explore whether an agreement could be negotiated as to the cost and completion date for Unit 1, with incentives and penalties for variations from agreed upon cost, the question of the amount of the construction costs which the Company would seek to recover through rates is also being considered in the current NIIPUC proceeding regarding the financing of the costs to complete Unit 1. See NHPUC Approcals of Finimcings and Appeals below. See also Item 1, Seabrook Nuclear Plant-Seabrook Unit 1-Bate Treatment above as to the Com-pany's position with respect to the amount of construction costs of Unit I which it would seek to recover through rates. The Company's request for recovery through its rates of its share of the cancelled Pilgrim Unit 2 nuclear plant is currently pending before the NHPUC. In June 19S4, the New Hampshire Supreme Court held that a New Hampshire statute prohibits recovery from ratepayers of any of the Company's Pilgrim Unit 2 investment. The Court did not decide whether the statute, as so interpreted, is con-stitutionak If allowed to do so, the Company intends to establish the requisite factual record in pro-ceedings before the NHPUC and then seek a final determination by the Court of the constitutional issues. The Company believes that a final judicial determination of the recoverability of its Pilgrim Unit 2 investment will not be raade before the end of 19S5. The Company continues to supply data in response to data requests of the NHPUC Audit Staff in conjunction with the NHPUC audit of the construction costs for the Seabrook Plant initiated in September 1983 for the purposes of verification that the reported costs of the Plant are includible and appropriate as part of the Company's rate base and that proper compliance with the applicable NHPUC accounting rules and regulations has in the past been and will hereafter be achieved. The Company has received initial reports of certain preliminary exceptions resulting from the NHPUC audit, which the Company does not believe are significant. On April 29,1983, the NHPUC issued Report and Sixteenth Supplemental Order No.16,374 in its Docket DE 81-312 Investigation into the Supply and Demand for Electricity. In this Report and Order, the NHPUC concluded, among other things, that the most likely completion dates for Seabrook Unit I and Seabrook Unit 2 were Alarch 19S6 and Af arch 1990, respectively, and that a cost estimate of at least $8 billion for the Seabrook Plant was probable based on the NHPUC's findings as to com-pletion dates. The NHPUC has since indicated that it would open investigatory dockets to consider: (i) methods to reduce or spread out the impact of the " rate shock" due to the pending inclusion of Seabrook Unit 1 in rate base; and (ii) long-term conservation and load management programs. The Company presently cannot predict when these investigations will be commenced or what effect their
. outcome will have on the Company.
21 1 q a
On May 1,1981, a formal petition was filed with the NIIPUC requesting the NHPUC to institute a proceeding to investigate the level of rates being charged by the Company and, after such investiga-tion, to disallow recovery of any portion of the Company's current rates related to the Seabrook Plant found to be unwarranted by the Company's conduct of the Seabrook Plant construction program. The petition has been dismissed by the NIIPUC. Another petition was filed with the NIIPUC in June 1984 by the same petitioner, seeking substantially the same relief. In addition, in Jtme 19S4, the Consumer Advocate of the NIIPUC filed a petition seeking disallowance in current rates of any costs associated with the Seabrook Plant, as well as other rate reductions. In Jtme 19S4, the NIIPUC concluded investigations into the adequacy of the Company's coal in-ventory for its Merrimack Station and the oil inventory for its Schiller and Nowington Stations, finding in each case that the Company should maintain inventories at prescribed levels. An additional in-vestigation into the suspension of the Schiller Station Coal Conversion Project has not been completed. See Item 1, Fuel Supply and Conversion from Oil to Coal. NHPUC Approcalv of Financings and Appealv. Ily orders dated June 1,1984 and June 18,19S4, the NIIPUC authorized the issuance of $90,000,000 of Secured Exchangeable Promissory Notes, which were sold to institutional investors on June 20,19% At the hearing on the Company's petition to the NIIPUC with respect to the issuance of these Notes, the Chairman of the NIIPUC denied two motions to intervene. The would-be intervenors appealed to the New Ilampshire Supreme Court the NIIPUC's denial of their motions for rectmsideration, and one of the would-be interrenors also appealed to the New IIampshire Supreme Court the NIIPUC's denial of its motion for reconsideration of the June 1,19S4 order. The Court heard arguments on these appeals on January 8,1955, but has not yet ren-dered a decision. On September 21 and September 26,19S4, the NIIPUC issued orders approving the Company's petition to issue up to an aggregate of $425 million principal amount of units and debentures, which were sold in December 1984. The orders, issued by a two-to-one vote, imposed five conditions on the approval. Three of these conditions are as follows: (1) the Company must file a monthly statement with the NIIPUC showing the (iisposition of the proceeds from the sale of the units and debentures; (2) the Company may not spend at a level in excess of its share (35.56942To) of 55 million per week on Seabmok construction until authmized to do so by NIIPUC order; and (3) the Company may not declare or pay preferred and common stock dividends until autho-rized to do so by further NIIPUC order (see Item 1, Financing - Preferred Stock for a descrip-tion of other restrictions on the Company's ability to pay preferred stock dividends, and see Item 5, Market for the Company's Common Equity and Related Security Holder Matters for other re-strictions on the Company's ability to pay common stock dividends). The Company has complied with the foregoing conditions. The NIIPUC also stated that two other conditions would be imposed. First, the Company could " service Seabrook related debt and accrue Seabrook related AFUDC at current levels until an order is issued in the NIIPUC proceeding which is considering whether to appmve the Company's plan to raise its share of the cost to complete Seabrook Unit 1, and second, that the Company could not ser-vice such debt from the proceeds of these financings or accrue such AFUDC after the conclusion of that proceeding unless specifically authorized by the NIIPUC to do so at that time. Until appmval of the Compan/s plan to raise its share of the cost to complete Seabrook Unit 1, the Company will not use any of the proceeds from the S425 million financing to pay for its share of Seabrook construction costs or to service indebtedness which could be characterized as "Seabrook related debt', On August 2,19S4. the NIIPUC established a proceeding to investigate the Company's plan to raise its share of the cost to complete construction of Unit 1 of the Seabrook Plant. In this proceeding, 22
the NIIPUC intends to quantify the incremental cost of completing Unit 1 and to explore long-term alternatives to completion; the NIIPUC also intends to evaluate the financial feasibility of the Com-pany's financing, including a determination of the level of revenues necessary to support the capital structure of the Company resulting from completion. Certain of the intervenors in this proceeding have argued that cancellation of Unit 1 and the reorganization of the Company under the Bank-ruptcy Code is preferable for ratepayers to the increases in rates which would be required if Unit 1 is completed and reflected in rates. IIearings commenced on December 3,19S4. The Company does not expect the NIIPUC to issue an order before Alarch 31,1985. Other Various class actions have been filed in the United States District Court for the District of New Ilampshire against the Company and certain present and former officers and directors, Peat, Afarwick, Alitchell & Co., the Company's independent certified public accountants (whose report on the Company's financial statements for the years ended December 31,19S4,19S3 and 19S2 is included herein), underwriters of the Company's securities, and Ropes & Gray and Sulloway IIollis & Soden, outside counsel for the Company, alleging violations of the Securities Act of 1933, the Securities Exchange Act of 1934 and principles of common law: Seidel v. Public Service Company of Neto llampshire, et al., C-84-197D; Stepak v. Public Service Company of Neue llampshire, et al., C-84-203D; Jacobs v. Public Service Company of Netc Ilampshire, et al., C-84-250D; Fendall v. Public Sercice Company of Nete llampshire, et al., C-84-259D; Lindenhaum v. Public Service Com-pany of New Ilampshire, et al., C-84-330D; Cicci v. Public Service Company of Nete llamp; hire, et al., C-84-35SD; Bratecr v. Public Service Company of Nete llampshire, et al., C-84-410D; Seidel, et al. v. Public Sercice Company of Nete llampshire et al., C-S4-541D; and Seidel v. Ropes & Gray and Sullorcay IIollis 6 Soden, C-S5-79D. 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 par-ticular public offering, through the Company's Dividend Reinvestment and Stock Purchase Plan or on the open market during various periods from October 29,19S1 through March 1,19S4. Unspeci-fled damages and rescission are sought for alleged misrepresentations and omissions relating to the Seabrook Plant, including the estimated cost and completion date thereof, in the Company's prospec-tuses and other disclosure documents. Various stockholder derivative actions, purportedly instituted on behalf of the Company, have been filed in the United States District Court for the District of New IIampshire, naming various present and former officers and directors of the Company and in two actions United Engineers & Constructors, Inc., the architect / engineer of the Seabrook Plant: Marketcich v. Tallman, et al., C-S4-220D; Zucker Associates, et al. v. Dorr. ct al., C-84-206D; Botos and Silver v. Tallman, et al., C 2 SOD; and llaher Crushed Fruit Co. Pension Trust v. Tallman, et al., C-84-383D. Such actions seek unspecified damages, an accounting by defendants, the rescission of c<mtributions to the Company's benefit plans on behalf of and for the benefit of defendants, and injunctive relief with respect to con-tinuation of construction and the issuance of securities or incurrence of debt to finance construction of the Seabrook Plant. Such actions allege various acts of waste and mismanagement and violations of defendants' fiduciary duties with respect to the construction and financing of the Seabrook Plant. The foregoing lawsuits are all at a very early stage and answers to the complaints have not been required to be filed. The Company and the other defendants intend to contest these lawsuits vig-orously. Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY IlOLDERS There was no matter submitted to a vote of the Company's security holders during the fourth quarter of fiscal 19S4. 23
r Item 4A. EXECUTIVE OFFICERS OF TIIE REGISTRANT Information is set forth below as to the names and ages of the executive officers of the Company,
'their positions as officers of the Company both current and for the past five years, their length of service with the Company, and in the case of Afessrs. Bayless, Cameron, Derrickson, Johnson and ~ Thomas, a brief explanation of their respective prior five years' business positions and responsibilities.
Age and Name- (Years of Position Serv!ce) Robert J. IIarrison President and Chief Executive Officer since Afarch,19S3; 53(28) President and Chief Operating Officer (1981-1983); President and Chief Financial Officer (19S0-1981); Financial Vice President (1978-19S0) John C. Duffett . Senior Vice President since December 1982, Vice Presi. 57(31) dent (1978-19S2) Charles E. Bayless Financial Vice President since Afarch,1981; Director of 42 (4) Special Corporate Projects, Consumers Power Com-pany, Jackson, hiichigan (1978-1981)(2)
- D. Pierre G. Cameron, Jr. Vice President and General Counsel since September, 50 (4) 1980; . Treasurer and Assistant Secretary, Baltimore Gas and Electric Company, Baltimore, Afaryland (1979-19S0); Associate General Counsel-Corporate, Baltimore Gas and Electric Company (1971-1979)(3)
William B. Derrickson Senior Vice President-Nuclear Energy since Afarch 44 (1) 1984; Director of Projects, Florida Power & Light Company, Aliami, Florida (19S2-19S3); Project Gen-eral Afanager, Florida Power & Light Company (1977-19S2)(4) IIenry J. Ellis Senior Vice President since December,1982; Vice Presi-61(38) dent (1976-1982) Roy G. Barbour. Vice President since December,1982; Director-General 57(21) Engineering Division (1981-1982); Director-System Planning (1977-1981) George Branscombe Vice President and Treasurer since January,19S5; Trea- 37 (5) surer (1982-1985); Internal Audit Afanager (19S0-19S2); Senior Auditor (1979-19S0) Raymond E. Closson . Vice President (1) 64(38) William T. Frain, Jr. Vice President since December, 1982; Comptroller 43(20) (1979-19S2) Warren A. Ilarvey . Vice President (1) 58 (37) Wendell P. Johnson . Vice President since July,1983; Vice President, Yankee 62 (1) Atomic Electric Company, Framingham, Afassachu-setts (1974-1983)(5) James L. Nevins . Vice President (1) 50(16) 24
m _ __ ._. - . _ . __ _ Ase and (Years of Name- Position Service) Robert A. Parks Vice President since December,1982; Director of Afan- 39(16) agement Information Systems (1979-19S2) George S. Thomas Vice President-Nuclear Production since hhy,19S2; 42 (4) Nuclear Production Superintendent (19S0-1982); Afan-ager, Startup Test Group, Yankee Atomic Electric ! I Company, Framingham, Afassachusetts (1978-19S0) (6) John J. Lampron Assistant Vice President since December,19S2; Trea- 40 (13 ) surer (1978-1982) Robert G. Quellette . Comptroller since December,1982; Assistant Comp- 53(33) troller (1979-10S2) Russeli A. Winslow . Secretary (1) 50(23) 1 (1) Has held same position for at least 5 years. (2) As Director of Special Corporate Projects for Consumers Power Company, hir. Bayless was responsible for specialized financing projects, including nuclear fuel leases, leveraged and single investor leases, pollution control financing and acceptance facility agreements. l (3) As Treasurer and Assistant Secretary of Baltirrore Gas and Electric Company, Afr. Cameron had supervisory responsibility for the Finance Debartment of Baltimore Gas and Electric Company, including all financial planning, cash management, stockholder records, insurance, employee bene-fit plan administration, and financial documents (statistical reports) activities. As Associate Cen-eral Cotmsel-Corporate of Baltimore Gas and Electric Company, Afr. Cameron had both super-visory and primary responsibility for all legal aspects of equity and debt financings (including pollution control financings), proxy solicitation / annual meeting preparation, negotiation and l l- preparation of major construction and equipment procurement contracts and federal government agency liaison. ! .(4) As Director of Projects for Florida Power & Light Company, Afr. Derrickson was responsible for all major power plant capital projects and project services, including cost and schedule control and estimating. Afr. Derrickson, in his position as Project General hianager for Unit 2 of the St. Lucie Plant of Florida Power & Light Company (an 500 megawatt pressurized water nuclear i power plant)'had the responsibility for the management of all phases of that project, which l l l encompassed planning and scheduling, engineering, procurement of material, construction, licens- ! ing and startup. (5) As Vice President of Yankee Atomic Electric Company, Afr. Johnson had overall responsibilities for project engineering, construction, project management and quality assurance. hir. Johnson has also been in charge of the nuclear construction and quality assurance activities being performed by Yankee Atomic Electric Company for the Seabrook Plant. t (6) As hfanager, Startup Test Group of Yankee Atomic Elcetric Company, Afr. Thomas was stationed at the Seabrook Plant with the responsibility for development of programs for all post construction i testing activities, including startup testing. During 197S and 1979 51r. Thomas also participated in
.the startup activities at the North Anna Nuclear Power Station of Virginia Electric and Power Company, in activities associated with the Three hiile Island Recovery Operation and in the evaluation by the Electric Power Research Institute of the Three hiile Island incident.
25
PART II Item 5. AIARKET FOR TIIE CO.\tPANY'S CO.\1.\ TON EQUITY AND RELATED SECURITY , IIOLDER AIA'ITERS The Company's shares of Common Stock are traded on the New York Stock Exchange, where the high and low sales prices during 19S1 and 1983 were as follows: High Low High Low 1934 19S3 First Quarter . 12 % 8 First Quarter . 19 % 17 % Second Quarter . 8% 3% Second Quarter . 20 16 % Third Quarter . 4% 3% Third Quarter 17 % 16 Fourth Quarter . 5 3% Fourth Quarter 18 % 10 % Since April 19S4 the Company has omitted dividends on the Company's Common Stock as part of its cash conservation program described above under Item 1, Financing-Liquidity Crisis. Quarterly dividends of 53c per share were paid during 1983 and the first quarter of 19S4. Subject to the prior rights of shares of the Preferred Stock, $100 par value, and shares of Preferred Stock, $25 par value, to dividends and to the limitations set forth in this and the next succeeding para-graph, shares of Common Stock are entitled to dividends when and as declared by the Board of Diree-tors out of any remaining funds legally available therefor. As a result of the omission since April (' 1984 of quarterly dividends payable on shares of the Company's Preferred Stocks, and the failure of the Company to make sinking fund payments on certain series of the Company's Sinking Fund Pre-ferred Stocks, 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 Stocks. The revised financing arrangements with the Company's existing lenders prohibit the Company from redeeming or repurchasing any shares of its capital stock, including the making of sinking fund payments on its Sinking Fund Preferred Stocks, until the loans from such lenders have been repaid in full and their lending commitments terminated. In addition, in its September 19S4 order approving the $425 million financing, the NIIPUC imposed a c<mdition that a the Company not pay preferred and common dividends until authorized to do so by further NIIPUC order, The Articles of Agreement contain certain limitations, applicable so long as any shares of the Preferred Stock are outstanding, on the Company's right to declare dividends on shares of Common 4 Stock out of net income (similar limitations are contained in certain indentures supplemental to the First Afortgage, applicable so long as any bonds of Series I through V are outstanding), or in the event Common Stock Equity (as defined) is less than 257o of Total Capitalization (as defined). Pur-suant to terms of the Company's General and Refunding .\fortgage Indenture, dividends may not be paid on shares of Common Stock in excess of the Company's Net Income accumulated after January 1,'1978 less the aggregate amount of all dividends paid or declared on shares of Preferred Stock of the , Co.npany during such period phis $32,000,000. At December 31,19S4, $230,2S2,000 of Retained Earn-ings was not subject to dividend restriction. At December 31,1981, there were 65,441 record owners or shares of the Company's Common Stock. Dilution from the Exercise of Warrants. If exercised, the 18,375,000 warrants to purchase shares of common stock issued as part of the $425 million financing in December 1984 will increase the number of outstanding shares of Common Stock of the Company by 497o. The book value of the Com-pany at December 31,19S4 per outstanding share was $24.61. The warrants will allow exercise at a
' price considerably below book value, diluting the book value of existing stockholders. On a pro forma basis, after giving effect to the assumed exercise of the warrants, Imok value at December 31,19S4 would be $18.12.
l Funds received from the issuance and exercise of warrants are expected to be reflected in the Company's capital structure for rate-making purposes. 26
Item 6. SELECTED FINANCIAL DATA 1984 1983 1982 1981 1980 (Thousands except Per Share Arnounts and Ratios)
$ 525,5S5 $ 463,484 $ 423,290 $ 440,884 $ 351,247 Operating Revenues Fuel and Purchased Power Ex- 187,248 penses 25S,316 234,971 224,830 255,247 87,241 68,150 43,469 47,051 47,307 Operating Income 144,033 137,347 97,672 78,619 71,729 Total AFUDC Net Income . 156,600 151,658 91,623 77,187 59,847 Earnings Per Common and Com-mon Equivalent Share 3.07 3.49 2.73 2.65 2.77 Dividends Per Share of Common Stock
- 0.53 2.12 2.12 2.12 2.12 Shares of Common and Commen Stock Equivalents (Average) 37,920 34,026 25,458 21,883 16,539 Ratio of Earnings to Fixed Charges 2.54 2.96 2.47 2.36 2.32 Unfinished Construction $1,691,455 $1,39S,134 $1,027,60S $ 772,526 $ T24,150 Total Assets 2,565,2S3 2,085,783 1,615,523 1,328,349 1,254,228 Long-Term Debt 999,601 726,777 637,808 449,071 398,856 Preferred Stock with hfandatory Redemption Requirements 265,220 271,280 177,840 120,000 120,000 Total Capitalization 2,228,661 1,811,408 1,465,102 1,090,535 957,604 Short-Term Debt 145,455 - - 125,600 108,350
- Xince April 1984 the Company lias omitted the quarterly dividends payable on shares of Common and Preferred Stock.
Item 7. AfANAGEhlENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Capital Requirements and Liquidity The Company's external financing requirements for the period 19S5-19S9 total approximately
$6S3 million. Through a financing completed in December 10Si, the Company has provided for its estimated working capital needs until the estimated completion date of Seabrook Unit 1. The majority of the external financing is needed for funding construction expenditures of $616.1 million and re-financing of debt maturities and payment of sinking fund requirements of approximately $410.0 l
million. It is anticipated that the balance of funds required will be generated internally in the years 19SS and 19S9. See Item 1, Financing - Fire Year Program. Until completion of Unit 1 of the Seabrook Plant, the Company's earnings are expected to consist almost entirely of AFUDC, which is described in Note 2 of Notes to Financial Statements. Since AFUDC is a non-cash addition to earnings, cash for the payment of interest on the Company's out. standing indebtedness and the indebtedness to be incurred to complete ccmstruction of Unit I will need to be provided in large part by external financing. The Company's ability to accomplish its financing program has been impaired as a result of a serious liquidity crisis experienced in the spring of 19S4 which threatened to require the Company to seek protection from its creditors under the Bankruptcy Code. At this time the Company is unable to obtain any significant amount of additional short-term bank credit and does not believe it can sell any additional shares of its Preferred or Common Stocks on reasonable terms as a result of its omission since April 19S4 of dividends on its Common 27
l l l l and Preferred Stocks. Consequently, at least until the Company has paid all arrearages in dividends on shares of its Preferred Stocks, the Company is required to satisfy all of its external financing require-ments through the issuance of debt instruments in the securities markets. See Item 1, Financing-Liquidity Crisis. Holders of ,$146 million of indebtedness may demand immediate payment if the financing described under Item 1, Financing-Netchrook Plan is not consummated by February 28, 1955, current estimates of the cost and completion date of Seabrook Unit 1 exceed earlier estimates, or certain minimum spending levels for construction of Seabrook Unit I are not achieved by February 28,19S5. The Company is in the process of seeking amendments of these and certain other provisions of these agreements and waivers of certain defaults. It is likely that further amendments will be needed by the end of March 19S5. The Company's cash flow will improve as Seabrook Unit 1 is reflected in rates. See Item 1, Scahrook Nuclear Plant-Rate Treatment. Delay in commercial operation of Unit 1 or in the reflection in rates of a substantial portion of the costs of Unit I would require the Company to obtain significant amounts of additional external financing, and there can be no assurance that the Company would be able to obtain such financing. The amount of the costs of constructing Unit 1 includible in the Company's rate base upon completion of Unit 1 is expected to be the subject of controversy in the NIIPUC proceeding considering the matter. Allegations have been made that construction of Unit I has been mismanaged and that such mismanagement has resulted in exces-sively high costs. See Item 3, Other. Only costs found by the NIIPUC to have been prudently incurred would be included in the Company's rate base. Future earnings would be adversely affected to the extent tha'. the full costs of Unit I were not reflected in rates. Even after inclusion of Unit 1 in rate base, any outage of Unit 1 of such a nature or duration as to result in its removal from rate base would impose significant burdens on the Company because Unit I and common facilities will constitute more than half of the Company's total assets and will be the source of a significant portion of its electric generating capacity. The Company's ability to successfully implement its financing program is dependent upon com-pleting construction of Seabrook Unit 1, obtaining an operating license for Unit I from the NRC, and reflecting in rates the costs of Unit 1 as described under Item 1, Business-Scabrook Nuclear Plant. Results Of Operations Operating revenues increased 13% in 1984 as significant economic and population growth oc-cured in the area served by the Company. This increase followed the 9% increase of 19S3 and a 4% decline in revenues of 19S2. The increases in 19S4 and 19S3 revenues were primarily the result of increased megawatt-hour sales (6.1% and 3.6%, respectively) and the rate changes which are dis-cussed in Note 3 of Notes to Financial Statements. The revenue change of 19S2 was primarily the result of rate changes as megawatt-hour sales declined slightly in that year. Fuel and purchased power expenses, on which energy cost recovery revenues are based, are the major component of operating expenses comprising 59% of the total operating expenses for each year. While the effect of variations in energy costs has had a significant effect on the Company's revenues in the past, the stability of energy prices in recent years has produced small energy related changes in revenues and expenses. Operating expenses other than fuel, purchased power expenses and taxes on income decreased slightly for 19S4 and 19S3, significant reductions from the 14% increase of 19S2. This reduction reflects the lessened impact of inflation, cash conservation and the continuing development of strict cost con-trol and efficiency measures in all areas of the Company's operations. The increase in operating revenues coupled with certain operating expense decreases produced a significant improvement in operating income for 19S4 and 19S3. AFUDC increased in each year due to the increase in unfinished construction at the Seabrook Plant. 28
Effective March 1,1984, the Company ceased capitalization of all costs, mcTuding AFUDC, related to Unit 2 of the Seabrook Plant. The effect of this decision was to reduce 19S4 net income by approximately $35,200,000. Interest on long-term debt has increased each year as the balar.ce of debt outstanding has increased due to the capital requirements of the Company's construction program. In 19S4 other interest expense increased as some long-term debt agreements were restructured to short-term during the liquidity crisis experienced in 1984. The isst.ance of $90,000,000 of short-term notes in June,1984, which were exchanged for long-term debt in December 19S4, also increased other interest expense. Other interest expense declined in 19S3 as the use of short-term borrowings was reduced. Net income increased in all periods, but in 19S3 the improvement was more pronounced primarily due to increased AFUDC and increased megawatt-hour sales. In 19S4 the improvement was diminished as the cessation of the capitalization of costs related to Unit 2 offset the effect of increased megawatt-hour sales. Preferred dividend requirements increased in 1981 and 1983 as preferred stock was issued in April and October of 19S3. In December 1934, the Company issued 18,375,000 common stock purchase warrants as part of a
$425 million financing. As the warrants are common stock equivalents, the effect of their issuance was to reduce earnings per share slightly in 10S4. In 1955 the effect will be more pronounced. See Note 2 of Notes to Financial Statements.
Inflation continued to affect Company operations, since under current regulatory practice the investment in utility plant is recovered at historical cost but replaced, as necessary, at current cost. See Note 10 of Notes to Financial Statements, which reflects the approximate effects of inflation on Company operations. The data provided in Note 10 have been prepared and presented in con-formity with guidelines established by the Financial Accounting Standards Board and should be viewed as experimental and only approximations of certain effects of inflation on operations of the Company. If Seabrook Unit 2 is cancelled and the Company is denied recovery through rates, the un-recovered cost would be charged against earnings in the period when such denial became final. In addition, to the extent that costs of constructing Unit 1 are not allowed in rate base, the Company might be required to charge the disallowed ammmt against earnings. Under certain circumstances, the aggregate of such charges could eliminate or even result in a deficit in the Company's retained earnings. The results of operations discussed above are not necessarily indicative of future earnings. It is expected that higher operating costs and carrying charges on increased investment in plant, i' not offset by a similar increase in operating revenues (produced either by periodic rate relief or incrases in megawatt-hour sales), will adversely affect future earnings. Continued growth in megawatt-hour sales will be dependent on the rate of economic growth in New IIampshire, weather and the use of alternate energy sources. 1 29 i
i 1 i j 4 I [TIIIS PAGE INTENTIONALLY LEFT llLANK] .1 5 t 30 I t e
- w. -. . .- . _ _ . _ _ - .. _ _ _ _ _ _ _ _ _ _ __ __. _ _ _ , ___
r Item 8. FINANCIAL STATENIENTS AND SUPPLENIENTARY DATA PUBLIC SERVICE CONIPANY OF NEW HAMPSHIRE STATEMENTS OF EARNINGS For the Year Ended December 31, _1984 1983 1982 (Thousands of Dollars) Operating Revenues (Note 3) Residential $187,479 $166,058 $153,184
' Industrial 138,430 119,958 114,380
- Other 199.676 177,468 155,726 Total Operating Revenues 525,585 463,484 423,290 4 Operating Expenses Operation Fuel ,
173,812 127,504 113,091 Purchased and Interchanged Power 84,504 107,467 111,739 Other Operating Expenses 58,581 56,608 57,890 Alaintenance 19,267 27,000 - 29,M2 Depreciation 22,728 21,016 19,558 56,119 34,968 29,425 Taxes on Income (Note 4)
- Other Taxes, Principally Property Taxes 23,330 20,771 18,476 Total Operating Expenses 438,341 395,334 379,821 Operating Income 87,244 68,150 43,469 Other Income and Deductions Allowance for Equity Funds Used During 103,912 104,146 67,624 Construction (Note 2) 49,179 30,185 24,661 Taxes on Income (Note 4) ,
Equity in Earnings of Affiliated Companies 3,122 2,856 3,099 Other-Net 424 4,891- 2,900 Total Other Income and Deductions . 156,637 142,078 98,290 Income Before Interest Charges 243,881 210,228 141,759 Interest Charges Interest on Long-Term Debt 105,482 85,M9 61,169 Other Interest ~ 21,920 0,122 , 19,015 Allowance for Borrowed Funds Used During Construction (40,121) (33,201) (30,048) (Note 2) Net Interest Charges . 87,2S1 58,570 50,136 Net Income . .. 156,600 151,658 91,623 Preferred Dividend Requirements (Note 8) 40,983 32,996 22,153 Earnings Available for Common Stock $115,617 $118,662 $ 69,470 Weighted Average Common and Common Equivalent 37,920 34,026 25,458 Shares (000's) . Earnings Per Common and Common Equivalent Share (Note 2) $3.07 $3.49 $2.73 DMdends Per Share of Coinmon Stock (Note 8) . $0.53 $2.12 $2.12 See accompanying Notes to Financial Statements. 31 1 I l ___ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ J
PUBLIC SERVICE COMPANY OF NEW ILOfPSIIIRE BALANCE SIIEETS ASSETS December 31, 1984 1983 Utility Plant at Original Cost Electric Plant $ 684,086 $ 639,688 Less: Accumulated Provision for Depreciation 219,955 201,044 464,731 438,644 Unfinished Construction (Note 1) In Progress (Principally Seabrook Unit 1) 1,389,555 1,095,034 Suspended (Seabrook Unit 2) 301,900 303,100 Total Unfinished Construction 1,691,455 1,398,134 Net Utility Plant 2,156,186 1.836,778 Investments Nuclear Generating Companies 11,600 11,544 Finance Subsidiary 12,486 13,258 Real Estate Subsidiary 7,619 8,227 Other, at Cost 184 185 Total Investments 31,889 33,214 Current Assets Cash and Terr.porary Investments 262,256 82,487 Accounts Receivable (Net of Allowance of $959 and $875 in 1984 and 1983, respectively) 47,021 50,277 Unbilled Revenue 10,500 9,220 Fuel, hfaterials and Supplies, at Cost 28,311 45,840 O'her . 4,943 5,093 Total Current Assets 353,091 102,917 Other Assets Special Deposits . 2,431 205 Cost of Cancelled Pilgrim Unit 2 Project (Note 1) 15,646 15,931 Other. 6,040 6,738 Total Other Assets 24,117 22,874
$2,565.283 $2.085,783 See accompanying Notes to Financial Statements.
32
PUBLIC SERVICE COAIPANY OF NEW IIAAIPSIIIRE BALANCE SIIEETS CAPITALIZATION AND LIABILITIES December 31, 1984 1983 Capitalization (See separate statements) Common Stock Equitv $ 915,127 $ 761,369 Preferred Stock With Afandatory Redemption Requirements 205,220 271,280 Without hfandatory Redemption Requirements 48,713 48,983 Long-Term Debt 999,601 726,777 Total Capitalization . 2,228,661 1,811,408 Current Liabilities Notes Payable (Note 5) 20,485 - Promissory Note (Note 5) 25,000 - Eurodollar Term Loan (Note 5) 50,000 - Nuclear Fuel Obligation (Note 5) 50,000 - Long-Term Debt to be Retired Within One Year . 20,430 96,439 Preferred Stock Redemption Due Within One Year 7,620 1,560 Accounts Payable . 32,111 75,910 l Accrued Taves 7,959 8,113 l Accrued Interest 39,384 23,194 Other . 19,321 8,953 Total Current Liabilities . 272,310 214,169 Deferred Credits Accumulated Deferred Investment Tax Credits 18,063 18,562 Accumulated Deferred Taxes on income (Note 4) 43,811 38,722 Other 2,438 2,922 Total Deferred Credits 61,312 60,206 Commitments and Contingencies (Note 1)
$2,565,283 $2,085,783 See accompamfi r.g notes to Financial Statements. I 33
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE STATEMENTS OF CAPITALIZATION December 31, 1984 1983 (Thousands of Dollars) Common Stock Equity . r Common Stock - $5 Par Value(a) Authorized - 60,000,000 Shares Outstanding- 37,191,067 Shares in 1984, and 36,996,327 in 1983 . $185,955 $184,982 Other Paid-In Capital . . . 436,320 413,275 Retained Earnings (b) - 232,852 160,111 Total Common Stock Equity . .. . . .. 915,127 768,368 Cumulative Preferred Stock (Note 8) Par Value $100 Per Share- Authorized 1,350,000 Shares Outstanding 615,528 Shares Par Value $25 Per Share- Authorized 14,000,000 Shares Outstanding 10,400,000 Shares
- Par Shares Call Dividend Value Outstanding Price With Afandaton Redemption Requirements (c) 7.64% $100 120,000 $104.84 . 12,000 12,000 9.00 100 158,400 106.75 15,840 15,840 11.24 25 1,200,000 27.11 . . 30,000 30,000 17.00 25 1,200/)00 29.25 30,000 30,000 15.00 25 1,200,000 28.75 ... 30,000 30,000 15.44 25 2,400,000 28.86 . 60,000 60,000 13.00 25 1,400,000 - 28.25 , 35,000 35,000 l- 13.80 25 2,400,000 28.45 60,000 60,000 l
272,840 272,840 Less: Preferred Stock Redemption Due Within One Year (7,620) (1,500) 265,220 271,280 Without hfandatory Redemption Requirements l 3.35% $100 102,000 $100.00 10,200 10,200 l 4.50 100 75,000 102.00 7,500 7,500 5.50 (Convertible) 100 10,128 100.00 . 1,013 1,283 j 7.92 100 150,000 103.96 15,000
. 15,000 11.00 25 600,000 27.00 15,000 15,000
! 48,713 48,983 [ Total Cumulative Preferred Stock-Net . 313,933 320,263 i l r See accompanying Notes to Financial Statoments and to Statements of Capitalization. 34 [. 1
D ) PUBLIC SERVICE COhfPANY OF NEW ILOIPSIIIRE STATEhfENTS OF CAPITALIZATION Long. Term Debt First Afortgage Bon(d) ds(e) December 31, Series Rate hiaturity 1984 1983 (Thousands of Dollars) H 3%% 1984 . .. ... $ - $ 10,080 1 3% 1986 . . .. . . ... 6,710 6,710 hi 4% 1992 . .. 21,212 21,259 N 6% 1996 .. ........... 15,345 15,345 O 6% 1997 . . .... . 13,624 13,624 P 7% 1998 . ... .. . 13,705 13,705 9 2000 18,490 18,490
- Q . .. ... .
R 7% 2002 .. ...... 18,705 18,705 S 9 2004 . .. ........ 18,957 18,957 U 10% 1985 . . 14,125 14,128 V- 9% 2006 14,478 14,478 W 10% 1993 9,796' 9,864* X 12 1999 . 9,244' 9,302' Y 18 1989 . 24,135' 24,135' 198526 208,782
' Let ' 4 hfortgage Bonds (*) Pledged as Security for General and h > Jng h!ortgage Bonds _ {43,175) (43,301) f-! 'crtgage Bonds 155,351 165,481 General m. , ding hfortgage Bonds I, 10%% 1993 . . , 49,080 54,540 B 12 1999 . . ... 60,000 60,000 C 14 % 2000 . . 30,000 30,000 I
D 17 1990 23,000 23,000 E 18 1989 50,000 50,000
)
C Variable Rate 1987 17,563** - Less: General and Refunding hfortgage Bonds (**) Pledged as Security for Nuclear Fuel Obligation (17,563) -
~
Promissory Note (Note 5) - 25,000 Eurodollar Term Lcan (Note 5) - 50,000 Promissory Notes,17%, Due 1986 30,000 30,000 Pollution Control Revenue Bonds 9% 1984 . . .. . - 5,800 12 %-13% 1988-2003 . . 20,000 20,000 Debentures 15%% 1988 . 75,000 75,000 14 % 1991 . .. 100,000 100,000 15 2003 ... 100,000 100,000 17 % 2004 . . 425,000 - NucIcar Fuel Obligation (Note 5) - 50,000 Total Long-Term Debt . 1,117,431 838,821 l Less: Long-Term Debt to be Retired Within One Year . . (20,430) (96,439) Unamortized Premium and Discount . (97,400). (15,605)- Long-Term Debt-Net . . 999,601 726,777 Total Capitalization .. . .. 82,228,661 $1,811,408 See accompanying Notes to Financial Statements and to Statements of Capitalization. 35
PUBLIC SERVICE COMPANY OF NEW HAMPSIIIRE NOTES TO STATEMENTS OF CAPITALIZATION (a) In December 1984 the Company issued 18,375,000 warrants which will allow the holder to pur-chase a share of Common Stock at an exercise price of $5.00 per share. The warrants expire in 1991. (b) Since April 1984 the Company has omitted dividends on its Common and Preferred Stocks. There are currently $40,981,304 of Preferred Stock dividends in arrears. No dividends may be paid on Common Stock until such dividends are paid. Terms of certain short-term indebtedness prohibit the payment of Common Stock dividends until $125,000,000 of such debt is repaid. The Company's agreement with certain of its lenders contains further restrictions on the payment of dividends. In its September 1984 order approving a $425 million financing, the NIIPUC imposed a condi-tion that the Company not pay preferred and common dividends until authorized to do so by further NIIPUC order. Pursuant to the terms of the General and Refunding Mortgage Indenture, dividends may not be paid on the Common Stock in excess of net income accumulated after January 1,1978 less the aggregate amount of all dividends paid or declared on the Preferred Stock of the Company during such period plus $32,000,000. At December 31,19S4, retained earnings of $230,282,000 were not subject to dividend restriction. (c) The annual Sinking Fund requirements for Preferred Stock with mandatory redemption require-ments are as follows: 19S5 - $7,620,000,1986 - $6,060,000,19S7 - $9,060,000,19S8 -
$10,810,000 and 1989 - $13,810,000. Terms of short-term indebtedness prevent the Company from making these payments.
(d) The Long-Term Debt hiaturities and annual Sinking Fund requirements are as follows: 1985 -
$20,430,000,19S6 - $43,768,000,1987 - $7,058,000,19SS - $S5,30S,000 and 19S9 - $61,558,000.
Under the terms of the First Mortgage Indenture and the General and Refunding Mortgage Indenture, substantially all utility property of the Company is subject to the liens thereof. (e) Due to certain restrictions in the Company's First Mortgage Indenture, no significant amount of First Mortgage Bonds may be issued until an operating license is obtained for Seabrook Unit 1. See Item 1, Seabrook Nuclear Plant - Seabrook Unit 1.
1 PUBLIC SERVICE COMPANY OF NEW HAMPSIIIRE STATE 5fENTS OF CIIANGES IN FINANCIAL POSITION For the Year Ended December 31, 1984 1983 1982 (Thousands of Dollars) From Operations Net Income . . . . . $ 156,600 $ 151,658 $ 91,623 Principal Non-Cash Charges (Credits) to Income Depreciation .
..' . 22,728 21,016 19,558 Allowance for Equity Funds Used During Construction - (103,912) (104,146) (67,624)
Deferred Taxes and Investment Credit Adjustments 4,590 11,778 (192) Total from Operations . . 80,006 80,306 43,365 From Outside Sources Sale of Long. Term Debt . . . . Sil,706 235,413 141,050 Sale of Preferred Stock . . . . . - 95,000 60,000 Sale of Common Stock and Warrants . . . 23,811 185,288 49,886 Nuclear Fuel Obligation .
- 50,000 -
Funds Deposited with Trustee .
- 18,133 -
Change in Short-Term Borrowings . . , , 145,485 - (161,600) Sale of Portion of Afillstone Unit 3 . - - 15,353 Subscriuent Financings Used to Reduce Notes Payable-Banks , .
- (164,600) 161,600 Total from Outside Sources . 511,032 419,234 266,289 Decrease in Working Capital - 40,621 23,720 Total . ,
8 591,038 3 540,161 S 333,374 Application of Funds Property Additions .
$ 342,984 $ 425,909 $ 304,968 Allowance for Equity Funds Used During Construction (103,912) (104,146) - (67,624)
Dividends . . . . 29,859 103,865 75,200
~ Reduction of Long-Term Debt . 70,381 97,238 13,930 Reduction of Preferred Stock . 6,060 1,560 2,160 Increase in Working Capital . 247,518 - -
Special Deposits . . 2,226 205 15,092 Other Applications-Net (4,078) 15,530 (10,352) ' S 333,374 Total . . . , 3 591,038 3 540,161 Increase (Decrease) in Working Capital Other Than Short-Term ~ Borrowings Cash and Temporary Investments . $ 179,769 $ 80,727 $ (3,359) Receivables . (3,256) . 6,566 (291) (17,529) (322) 16,125 Inventories . . Long. Term Debt to be Retired Within One Year . 76,000 (90,352) (1,087) Preferred Stock Redemption Due Within One Year (6,000) (480) (1,080) Accounts Payable 43,799 (15,995) (28,307) 154 (6,100) 4,456 Accrued Taxes .. .. Accrued Interest . . (16,190) (5,027) (1,013) (9,178) (9,578) (9,161) Other . . Total . . . . . $ 247,518 $ (40,621) $ (23,720)
. Composition of Property Additions Jointly-Owned Nuclear Facilities $ 293,574 $ 365,752 $ 255,988 11,671 12,305 10,843 Nuclear Fuel . . . .
37,739 47,852 38,137 Other .. . Total $ S12,984 $ 425,909 $ 301,968
. l l
See acco.npanying Notes to Financial Statements. 37
PUBLIC SERVICE COAfPANY OF NEW HAAfPSHIRE STATEAfENTS OF CIIANGES IN COhl%f0N STOCK EQUTIT. For the Three Years Ended December 31,1984 (Thousands of Dollars) Other Amount at Paid-In Retained Shares Par Value Capital Earnings Total Balance- December 31,1981 23,195,639 $115,978 $253,934 $101,909 $471,821 Add (Deduct)
- Net Income 91,623 91,623 )
Cash Dividends - Common Stock , (54,202) (54,202)
- Preferred Stock (20,998) (20,998)
Issuance of Common Stock 3,328,044 16,M0 33,279 49,919
. Issuance Cost of Preferred Stock (2,538) (2,539)
Amortization of Redeemed Preferred Stock Issuance Cost 7 (7) i Balance- December 31,1982 26,523,683 $132,618 $284,682 $118,325 $535,625 ) Add (Deduct) Net Income 151,658 151,658 , Cash Dividends- I Common Stock . (72,458) (72,458) Preferred Stock (31,407) (31,407) Issuance of Common Stock 10,472,644 52,3 M 132,671 185,035 Issuance Cost of Preferred Stock (4,085) (4,085) Amortization of Redeemed Preferred Stock Issuance Cost 7 (7) Balance - December 31,1983 36,996,327 $184,982 $413,275 $160,111 $7M,368 Add (Deduct) Net Income . 150,600 150,600 Cash Dividends-Common Stock . (19,610) (19,610) Preferred Stock (10,249) (10,249) Issuance of Common Stock and Warrants . IM,740 973 23,097 24,070 Issuance Cost of Preferred Stock (52) (52) Balance - December 31, 1984 37,191,067 $185,955 $436,320 $292,852 $915,127 I I i l l l See accompanying Notes to Financial Statements. 38 l
PUBLIC SERVICE COAfPANY OF NEW HAAfPSHIRE NOTES TO FINANCIAL STATENIENTS I. Commitments and Contingencies The Company's shares of total expenditures included in Unfinished Construction for the jointly-owned nuclear facilities in which it is participating are as follows: December 31, 1984 1983 (Thousands of Dollars) Seabrook Unit 1 and Common Facilities $1,274,400 $1,011,900 Seabrook Unit 2 301,900 303,100 Afillstone Unit S 92,100 65,600
$1,668,400 $1,380,600 The Company's construction program expenditures (excluding AFUDC) are estimated to be $249,300,000 for 19S5, $157,100,000 for 1956 and $209,700,000 for 19S7 through 19S9.
In order to complete this construction program the Company needs to accomplish the $340 mil-lion financing described below and extend the maturity of approximately .$145 million of short term debt which expires on Afay 31,19S5, until the estimated completion date of Seabrook Unit 1. The Company is seeking approval from the NIIPUC for the $340 million financing, but is unable to determine whether such approval will be granted. The Seabrook Plant has experienced persistent and substantial cost increases. The increased costs have been due, among other reasons, to design changes, revisions of regulations of and other actions by the NRC and other regulatory bodies, extraordinarily high interest rates, inflation and construction delays, all of which have resulted in total costs (including AFUDC) far higher than planned. The estimates of cost and completion dates for the Seabrook Plant released in Afarch 19S4 were about 75% greater and 18 months later, respectively, than those made by the Plant's architect / engineer in November,1982. Following announcement of the substantialincrease in the estimated cost of the Seabrook Plant on Afarch 1,19S4, the Company's commercial banks indicated that they were unwilling to make advances under their $160,000,000 Revolving Credit Agreement with the Company (under which no amounts were outstanding) unless the Company obtained back-up sources of credit. Because funds were no longer available to the Company under the Revolving Credit Agreement, it was necessary for the Com-pany to commence strict cash conservation measures which included a vote by the Board of Directors on April 19, 1984 to omit the quarterly dividends payable on Afay 15, 1984 on shares of Common and Preferred Stocks and suspension on April 18,19S4 of payment of the Company's share of Seabrook Plant construction costs. The Company reduced non-Seabrook construction, began a program of reducing the number of non-Seabrook employees and reduced the salaries of executive officers and certain other salaried employees. The Company ceased the oil-to-coal cemversion of three 50 hiW units at its Schiller Station, which had been scheduled to be completed by the end of 1984. The payment of principalin the amount of $5,000,000 was not made when due under the Company's Acceptance and Stand-By Revolving Credit Facility Agreement with certain banks. Consequently, the banks ter-minated their commitments to provide further loans under this Agreement. As a result of the foregoing nonpayment, the commercial banks terminated their commitment to make loans under the Revolving Credit Agreement. The Company did not pay when due the Afay 1,19S4 installment on its Nuclear i Material Lease and Security Agreement with PruLease, Inc. under which a borrowing of $50,000,000 was outstanding secured by a lien on the Company's interest in nuclear fuel for the Seabrook Plant. In l-consequence, PruLease, Inc. terminated the Agreement and demanded payment of all outstanding l unpaid rents, the outstanding principal of all borrowings and all additional losses, damages and [ expenses associated with the Company's actions. The foregoing payment defaults were cured on l June 20,1984 when the Company sold $90,000,000 principal amount of its Secured Exchangeable j Promissory Notes 20% due 1955 and applied a portion of the proceeds toward the payment of out-standing debts. 39 l i 1 J
PUBLIC SElWICE COAIPANY OF NEW IIAAfPSIIIRE NOTES TO FINANCIAL STATEMENTS-(Continued) l i
. 1. Commitments and Contingencies - (Continued)
Construction of Unit I was suspended by the Company during April 19S4, and resumed on July 2 l at an approved expenditure level averaging Si million per week. By action of the Joint Owners the expenditure level was increased to $5 million per week mmmencing December 1,19S4. The Company believes that this expenditure limit will remain in effect until regulatory authorities have issued orders permitting the completion of Seabrook Unit 1. If this expenditure limit were lifted effective April 1, 19S5, the commercial operation date would be October 31,1950, and the total cost of Unit I would i be $4.6 billion including AFUDC at a composite rate for all Joint Owners of $1.7 billion and a management c<mtingency allowance of $170 million, but excluding uranium fuel. The Companis share of this cost would be $1,SO9,700,000 (including AFUDC of 8759,200,000 but excluding uranium fuel of $9S,000.000). This estimate is based on the assumption that the expenditure limit will be
; removed effective April 1,19S5 and that Seabrook Plant construction management is able to plan in advance for removal of the limit so as to ensure optimum construction scheduling. Ilowever, it is now unlikely that the expenditure limit will be completely removed by that date. The Com-pany anticipates that revised estimates for Seabrook Unit I will be made after the expenditure i limit has been removed. .
In December,1984 the Company completed a S425 million face amount financing that resulted in net cash proceeds to the Company of $275 million and conversion of $90 million of short term debt to long term debt. Completion of this financing and an earlier financing of $90 million has allowed the Company to continue to pay its share of the costs of constructing Seatrook Unit 1. In its order approving the above financing the NIIPUC stated that the Company ccmld " service Seabnmk related debt and accrue Seabrook related AFUDC at current levels until an order is issued" in the NIIPUC proceeding which is considering whether to approve the Companis plan to raise its share of the cost to complete Seabrook Unit 1, and that the Company could not service such debt from the proceeds of these financings or accrue such AFUDC after the conchision of that proceeding unless specifically authorized by the NIIPUC to do so at that time. Until approval of the Company's plan to raise its share of the cost to complete Seabrook Unit 1, the Company will not use any of the pro-ceeds from the $425 million financing to pay for its share of Seabrook construction costs or to service indebtedness which could be characterized as "Seabrook related debt". Until Unit 1 is completed and a substantial portion of its costs is reflected in rates, the Company will require external financings to pay interest on its outstanding obligations and complete con-struction. The Companfs inability to obtain any significant amount of additional short-term bank credit requires the Company to satisfy all of its external financing requirements in the securities markets. The Company believes that it is presently unable to sell its Preferred and Common Stocks on reasonable terms, principally because of the omission of dividends on those securities since April 1951. The Compan/s ability to issue debt securities is dependent ulvm many factors, some of which are beyond the Compan/s control. This lack of financial flexibility may impair the Companis ability to meet its obligations as they become due, satisfy covenants in its existing obligations or complete construction of Unit 1. If construction of Unit I were not completed, or commercial operation were undidy delayed, or adequate rate relief were not granted the Company upon com-mercial operation of the Unit, it would be very difficult for the Company to avoid proceedings under the Bankruptcy Code. On August 24,10S1, the Company signed agreements with its existing lenders which restructured the Compan/s indebtedness held by banks and its agreement with PruLease, Inc. This testructuring extends the maturity of an aggregate of $75 million of bank debt to Afay 31,19S5, and is subject to certain conditions regarding financing and construction (including consummation of the $340 million financing described below by February 28, 1955). If these conditions are not met, payment 40
i i l
- PUBLIC SERVICE CONIPANY OF NEW IIANfPSIIIRE NOTES TO FINANCIAL STATEMENTS -(Continued)
- 1. Commitments and Contingencies - (Continued) of the bank debt may.be immediately demanded by the banks. The Company is in the process of seeking amendments and extensions of the agreement. The $50 million of restructured financing by PruLease, Inc. has the same conditions and rights of acceleration. Extension of the maturity of any of these financings is dependent upon extension of the others on terms satisfactory to each lender.
The Company's cash flow will be improved when Seabrook Unit 1 is reflected in rates. Delay in commercial operation of Unit 1 or in the reflection in rates of a substantial portion of the costs of the Unit would require the Company to obtain significant amounts of external financing. The amotmt of the costs of constructing Unit 1 includible in the Company's rate base upon completion of Unit 1 is
. expected to be the subject of controversy in the NIIPUC proceeding considering the matter. Allega-tions have been made that construction of Unit I has been mismanaged and that such mismanagement has resulted in excessively high costs. Only costs found by the NIIPUC to have been prudently incurred woidd be included in the Company's rate base. Future earnings would be adversely affected
! to the extent that the full costs of Unit I were not reflected in rates. Even after inclusion of Unit 1 in rate base, any outage of Unit 1 of such a nature or duration as to result in its removal from rate base would impose significant burdens on the Company because Unit 1 and common facilities will constitute more than half of the Company's total assets and will be the source of a significant portion of its electric generating capacity. The Company's financing plan assumes that the costs associated with Seabrook Unit I will be reflected in rates on a phased-in basis after Unit 1 begins commercial operation. On July 23,19S4 the Company announced that it would seek to recover through rates no more than its actual share of a S4.5 billion aggregate cost of construction of Unit 1, contingent upon (1) the occurrence of no catastrophie developments clearly outside the control of construction management and (2) the timely receipt of regidatory approvals by the Joint Owners for financing the construction completion costs
- and for the change in management structure. The Company believes its acceptance of a limit on the i total cost of the Unit for rate-making purposes should increase the feasibility of phasing the Unit into . rates on an acceptabb basis. For financial planning purposes, the Company is assuming that Unit 1 could be phas<.d into rates over a number of years with annual increases of about loro plus a yearly inflation a6ustment of about 5% A phase-in of Unit 1 could result in the deferral by the Company of very la ge amounts of revenue which would have been collected had the entire cost of the Unit been placed into rates immediately. The ultimate recovery of these deferred revenues will require that the Campany obtain rate increases each year for a number of years beyond the 1985-1989 period. The Company cannot predict whether cumulative rate increases of a size required to recover the Co npany's investment in the Unit will be granted by the NIIPUC.
As part of a plan to con plete the construction of r nit 1 of the Seabmok Plant each Seabrook Joint Owner submitted to the othe r Joint Owners (i) o i dan for raising funds sufficient to pay for such Joint Owner's share of the remainh g cost to com@te Unit 1 and (ii) a schedule for regulatory approvals of f such plan. The plans assume a ash wst to complete construction of Unit 1 of $1.0 billion and a commercial operation date in October 1987. Each of such plans and schedules was approved by the other Joint Owners. In order to obtain such approval each Joint Owner had to evidence that the required financing would be available by satisfying certain criteria. To fulfill its commitment under this Newbrook Plan, the Company intends to issue in the second quarter of 1955 up to $525 million principal amount of debt securities, designed to yield pmceeds to the Company of $340 million. These securities will likely be of two types: deferred interest, third ^ mortgage bonds issued directly to the public (" DIBS") and third mortgage bonds issued to secure pollution control revenue bonds to be issued by the New IIampshire Industrial Development Author-ity on behalf of the Company. It is contemplated that the DIBS will not require interest payments for a period of up to two years and will be issued at a discoimt from their principal amount. The 41
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1 l PUBLIC SERVICE COAIPANY OF NEW HAAIPSHIRE NOTES TO FINANCIAL STATE 5fENTS -(Continued)
- 1. Commitments and Contingencies - (Continued) discount is designed to approximate compoimd interest on the amount paid by the purchasers of the bonds for the period during which interest is not paid. Thereafter interest would accrue and be payable semi-annually. All of these bonds would be secured by a third mortgage on substantially all of the Company's property located in New IIampshire. The proceeds received by the Company after underwriting discounts and expenses will enable the Company to deposit into the escrow ac-count funds sufficient to pay its share of the remaining estimated construction costs of Seabrook Unit 1. ,
The issuance of these securities is currently the subject of protracted hearings before the NIIPUC. The Company expects an order in this proceeding by hfarch 31,1985. IIowever, due to an imeertainty in New Ilampshire law, the Company may not be able to issue such securities until all appeals of the NIIPUC order have been decided by the New IIampshire Supreme Court. Such a decision may not be rendered for two months or more after the NIIPUC order has been issued. Certain other regulatory bodies have imposed deadlines that require that all Joint Owners complete their financing for Unit 1 by April 15, 1985 or that require removal of the expenditure limit on the construction of Unit 1 by Afay 5,1985. If the securities are not issued by April 15, 1985 or the construction limit is not lifted by hlay 5,1985, certain other Joint Owners may have to return to their commissions for further hearings or new proceedings, the result of which cannot be predicted. In the event of a negative ruling by the NIIPUC regarding the issuance of these securities or the inability of the Joint Owners to complete their financings, Seabrook Unit 1 may not be completed and it will be difficult for the Company to avoid proceedings under the Bankruptcy Code. If, due to regulatory action, financial difficulties or any other reason, one or more of the other Seabrook Plant participants should be unable to obtain sufficient or timely rates and financing and consequently are unable to fulfill their contractual commitments to pay on a timely basis their share of Unit I construction costs, completion of Unit I would be jeopardized. Delays in construction or licensing of Unit 1, adverse regulatory or legislative action, financing problems of the Company, work stoppages, labor or material shortages or further administrative or court decisions relating to actions of regulatory agencies, may jeopardize the completion of Unit 1. If Unit 1 is not completed, it would be very difficult for the Company to avoid proceedings under the Bankruptcy Code. In order to commence commercial operation of Unit 1, it'is necessary to obtain an operating license from the NRC. The Company's request for the Unit 1 operating license is being actively opposed by intervenors in hearings before the NRC. In order to obtain the license, it is necessary to develop the emergency response and evacuation plans for the Seabrook Plant in conjunction with federal, New IIampshire and Afassachusetts agencies and 24 municipalities in New IIampshire and Alassachusetts. Several municipalities and the 5fassachusetts Attorney General are opposing such ' development or the adequacy of the proposed procedures and plans, and the Governor of Afassa-chusetts has indicated that he will not certify the Alassachusetts plan to the appropriate federal agency unless all hiassachusetts municipalities involved have appmved their respective plans. Currently, there are no viable plans for the completion of construction of Unit 2, and the Com-pany does not have current cost or commercial operation date estimates. Under the Joint Ownership Agreement, cancellation of Unit 2 can only be effected by the vote of at least 80c'c of the ownership interests, so that cancellation requires the Company's ccmeurrence in such a vote. Ilowever, the Joint Onership Agreement requires the vote of at least 519e of the ownership interests to resume con-struction of Unit 2, and resumption of construction by the present Joint Owners is extremely unlikely. The Company's financing plans assume no further spending for Unit 2. If Unit 2 is cancelled, the Company would petition the NIIPUC for recovery of its investment in Unit 2 from ratepayers. The Company cannot predict what action the NIIPUC would take. In l l 42
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1 l l l PUBLIC SERVICE CONIPANY OF NEW HANIPSHIRE NOTES TO FINANCIAL STATE 5fENTS -(Continued)
- 1. Commitments and Contingencies - (Continued) view of the recent decision of the New llampshire Supreme Court regarding the Pilgrim Unit 2 generating plant (discussed below), it is uncertain whether the NIIPUC can grant the Company recovery of its investment in Seabrook Unit 2 from ratepayers, should that Unit be cancelled. If the NIIPUC denied recovery and subsequent administrative and judicial appeals, if any, were unsuccess-ful, the Company would be required to. charge the unrecovered cost of Unit 2 against earnings when such denial became final; the Company does not believe that a Snal determination of the question will be made before 1956. At December 31,19M, the Company's investment in Unit 2 was $301,900,000, excluding cancellation charges. While the Company believes that in the event of cancellation it would be entitled to allocate some part of this investment to the cost of Unit 1, the after-tax charge against earnings in the event it is denied recovery could, depending up(m the ar ount not recovered, ap-proximate the amount of the Company's current investment.
Effective Afarch 1,1984, the Company ceased capitalization of d costs, including AFUDC, related to Seabrook Unit 2. The effect of this decision was to reduce 199 net income by approximately
$35,200,000.
In June 1984 the New Ilampshire Supreme Court ruled that the New Hampshire anti-CWIP statute prohibits recovery from ratepayers of any of the Com .ny's investment in the cancelled Pilgrim Unit 2 generating plant located in Afassachusetts. The C .apany has a 3.47% interest in that plant (an investment of approximately $16 million), which was ancelled by the lead owner in 1981, and the Company had filed a petition with the NIIPUC in D cember 1983 seeking recovery of its investment. The Supreme Court expressly did not reach the question of whether the statute, as so interpreted, was constitutional, or whether the Company could receive a higher rate of return based on additional risk to investors represented by the inability to recover investments in cancelled plants due to the anti-CWIP statute. If allowed to do so, the Company intends to establish the requisite factual record in proceedings before the NIIPUC and then seek a final determination by the Court of the constitutional issues. The Company believes that a final determination of the recoverability of its Pilgrim Unit 2 investment will not be made before the end of 19S5.
- 2. Summary of Accounting Policies Regulationiand Operations The Company is subject, as to rates, accounting and other matters, to the regulatory authority of the New Ilampshire Public Utilities Commission (NIIPUC), the Federal Energy Regulatory Com-mission (FERC) and, to a lesser extent, the public utilities commissions in other New England states where the Company does business.
- incestments The Company follows the equity method of accounting for its investments in nuclear generating companies, a wholly-owned overseas finance subsidiary and a wholly-owned real estate subsidiary.
The Company owns between four and seven percent of each of four New England nuclear generating companies and, pursuant to purchased power ecntracts, is entitled to its ownership percent of total plant output and is obligated to pay a similar share of operating expenses and returns on invested i capital. Approximately S.1%,9.5% and 9.9% of the Company's total energy requirements were fur-nished by these companies in 19S4,19S3 and 19S2, 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 pro-43
1 PUBLIC SERVICE COAfPANY OF NEW HAAfPSIURE NOTES TO FINANCIAL STATENfENTS -(Continued)
- 2. Summary of Accounting Policies - (Continued)
, visions were equivalent to overall effective rates of 3.73%,3.70% and 3.65% of depreciable property for 19&t,1983 and 19S2,respectively. Afaintenance and repairs of property are charged to maintenance expense. Replacements and betterments are charged to utility plant. At the time properties are retired, the cost of property retired plus costs of removalless salvage are charged to the accumulated provision for depreciation. Operating Recenues Revenues are based on billing r tes, 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 incurred, the differences are deferred and reftmded or charged to
, customers through periodic rate adjustments. The Company records an estimate of revenue for service rendered but not billed.
Allorcance for Funds Used During Conswrction (AFUDC)
- AFUDC is the estimated cost, dui.ng the period of construction, of funds invested in the con-struction program which is not recovered from customers through current revenues. Such allowance is not realized in cash currently but under the rate-making process the amount of the allowance is expected to be recovered in cash over the service life of the plant in the form of mercased revenue collected as a result of higher plant costs.
The Company capitalized AFUDC at average net-of-tax annual rates of 11.9%,12.0% and 11.6% for 19S4,19S'i and 19S2, respectively. Earnings Per Con ~non and Common Equicalent Share Earnings per common and common equivalent share was calculated by adjusting earnings avail-able for common stock for (i) the reduction in interest expense that would result from the application of ~ the proceeds from the assumed exercise of 18,375,000 common stock purchase warrants (outstanding since December 1984 at an exercise price of .$5 per share) in excess of those proceeds used to repur-chase 20% of the Company's outstanding shares of common stock, to the reduction of outstanding long-term debt and (ii) the resulting change in AFUDC. The resulting earnings available for common stock was then divided by the weighted average of common stock outstanding and common stock assumed to be outstanding upon the exercise of warrants and assumed repurchases of common stock. i On a pro forma basis earnings per common and common equivalent share would have been $2.00, assuming the warrants had been issued January 1,19St. Ballo of Earnings to Fixed Charges Earnings represent the aggregate of net income, less undistributed income of unconsolidated com-panies, phis provisions for federal and state taxes on income and fixed charges. Fixed charges represent interest, related amortization and the interest component of annual rentals.
- 3. Rate.Afaking Afatters
,In 19S4 the NIIPUC issued a ratc order designed to increase annual non-energy revenues by approximately $24,700,000. During 19S2, the NIIPUC issued rate orders designed to increase annual j non-energy revenues by approximately $9,500000 effective July,19S2.
New Ilampshire retail customers are billed a levelized energy cost rate based on six. month pro-jected data for fuel and purchased power expense. Wholesale customers are billed under fuel adjust- j ment clauses. The proportion of revenues from prime sales associated with energy costs were 43.9% in 1984,40.0% in 1983 and 47.8% in 1982. The differences primarily reflect changes in the cost of energy. 44 4
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PUBLIC SERVICE CO5fPANY OF NEW HAAfPSHIRE NOTES TO FINANCIAL STATEMENTS -(Continued)
- 4. Income Taxes
.The components of income tax expense are as follows:
1984 1983 1982
.. . (Thousands of Dollars)
' Included in Operating Expenses Current - Federal m , 4 43,386 $ 31,536 $ 24,630 State ~ 4,823 (5,674) 3,082 48,209 25,802 27,712 Deferred- Federal 8,409 9,005 3,109 Investment Tax Credit Adjustments (499) (499) (1,396)
$ 56,119 $ 34,968 $ 29,425 Included in Other Income and Deductions Current - Federal $(41,226) $(28,672) $(24,706)
Current - State (4,820) (5,050) -
. Deferred- Federal , (3.133) 3543 45
$(49.179) _$_(30,185) _$_(24,661_)
Total Income Tax Expense-Federal $ 0,937 $ 15,513 $ 1,6S2 State 3 _ (10,730) 3,082
$ 6.940 $ 4,783 $ 4,761 In 19S3, the Company reversed $10,900,000 of accrned State franchise tax liability based upon a 1982 decision of the New Ilampshire Supreme Court rescinding the tax. Effective July 1983, the State of New IIampshire replaced the previous franchise tax with a 1% franchise tax on gross oper-ating receipts which the Company recognizes as other taxes and is, therefore, not reflected in the above table.
Beginning in 1983, the Company began allocating New Ilampshire Business Profits Tax to operat-ing income taxes. An offsetting state tax benefit was allocated to other income and deductions. l Investment tax credits utilized are deferred and amortized to income over the lives of the related I properties. At December 31,1984 the Company had investment tax credits available to carry forward of approximately $90,000,0(X) which expire between 1994 and 1999. The tax effect of differences between pretax income in the financial statements and income subject to tax, which are the result of timing differences, are accounted for as prescribed by and in accordance , with the rate-making policies of the NIIPUC. Accordingly, provisions for deferred inco.ne taxes are recognized for all specified timing ditTerences. Taxes attributable to other timing differences are flowed through to net income as adjustments to income tax expense. As of December 31,1984 the Company had not provided cumulative deferred income taxes totaling approximately $52,000,000 relating to various tax deductions which had been flowed through for book and ratemaking purposes. These deductions relate primarily to depreciation and unbilled revenue. Provisions for deferred income taxes are recognized for the following timing differences: 1984 1983 1982 (Thousands of Dollars) Nonnalized Timing Differences Relating to Plant $ 11,085 $ 8,488 $ 7,910 (4,303) (479) 2,104 Deferred Fuel Costs Hecoupment Revenue Eccoverable -
- - (3,302) l
- 2,018 (1,410)
Accrued State Taxes . . Used (Unused) Tax Net Operating Loss Carry Forward . +
- 3,490 (1,682)
Other~ , (2.001) (939) (497)
$ 5,276 8 13,148 $ 3,154 45 s-
l I i PUBLIC SERVICE COhfPANY OF NEW HAMPSHIRE NOTES TO FINANCIAL STATE 5fENTS -(Continued)
- 4. Income Taxes - (Continued)
The principal reasons for the differences between total income tax expense and the amount cal-culated by applying the federal income tax rate (46%) to income before income tax are as follows: 1984 1983 1982 (Thousands of Dollars) Income Before Income Tax $163,540 $156,441 $ 96,387 Expected Tax Expense . $ 75,228 $ 71,963 $ 41,338 Increase (Reductions) in Taxes Resulting from AFUDC Equity , . (47,799) (47,907) (31,107) Net-of-Tax Niethod of Recording AFUDC , (18,249) (15,273) (13,822) Difference between Book and Tax Depreciation-Not Normalized 1,969 1,829 1,505 State Income Taxes Net of Federal Income Tax 2 (5,794) 1,665 Other Deductions (4,211) (35) 2.185 Total Income Tax Expense .. $ 6.940 $ 4,783 $ 4,764 5.* Short Term Borrowings Short-term debt outstanding at December 31,19S4 consists of a $50,000,000 nuclear fuel obliga-tion, $75,000,000 of bank debt and $20,4S5,000 of credit from the architect / engineer for the Sea-brook Plant. These borrowings mature Afay 31,19S5 and are subject to numerous conditions regarding construction and financing of the Seabrook Plant. The interest rate on these borrowings is 116% of a specific bank's prime rate plus 0.25% except for $8,000,000 of bank debt which has an interest rate of 2%% over the London Interbank Offered Rate for three or six month Eumdollar deposits. Addi-tionally, the Company has an agreement providing until. Afay 31,19S5 a $35,000,000 revolving credit facility secured by the Company's accounts receivable. This facility has the same conditions as the agreements described above and numerous additional conditions to the making of loans imder the facility. Borrowings under this facility have an interest rate of 10S% of a specific bank's prime rate. The facility was used for a very short period in 19S4, but, as a result of thepompletion of the financing in December 19S4, the Company cannot make use of this facility and proposes to terminate it in 19S5. From June 20,19S4, until December 6,1984, the Company had outstanding $90,000,000 of 20% short-term notes which were exchanged for units ccmsisting of common stock purchase warrants and debentures on December 6,1984. Information regarding short-term borrowings is as follows: 1984 1983 1982 (Thousands of Dollars) Afaximum Short-Term Borrowings , $242,485 $142,100 $141,600 Average Amount Outstanding (Based on Alonth-End Balances) $132,783 $ 10,147 $104,693 Average Interest Rate (Including l'ees) At Year End 13.23 % - 13.72 % During the Year . 20.68 % 24.40% 18.66 % 46 4
PUBLIC SERVICE COMPANY OF NEW HAMP3 HIRE NOTES TO FINANCIAL STATEMENTS -(Continued)
- 6. Postemployment Benefits Pension Plan. The Company has a non-contributory pension plan covering substantially all employees. The Company's policy is to fund current pension costs. Costs were $5,572,000, $5,386,000, and $5,242,000, in 1984,1983, and 1982, respectively, and include amortization of past service costs over 25 years. Accumulated plan benefits and plan net assets for the Company's defined benefit plan as of January 1 of each year is as follows:
1984 1983
' Actuarial Present Value of Accumulated Plan BeneSts:
Vested . .. . . $38,562 $34.339 Nonvested . . . .. . . 1,937 1,578
$40,499 $35,917
. Net Assets Available for Benefits . . . .. $62,022 $52,057
~ The_ weighted average assumed rate of return used in determining the actuarial present value of accumulated plan benefits was 9% in 1984 and 1983.
Health Care and Life Insurance. The Company provides certain health care and life insurance beneGts for employees. Substantially all of the Company's employees may become eligible to continue - those benefits if they reach retirement age while working for the Company. Those benefits are pro-vided or administered through insurance companies whose premiums or charges are based on the benefits paid during the year. The Company recognizes the cost of providing those benefits by ex-pensing the ' annual insurance premiums, which were approximately $910,000 for retired employees in 1984.-
- 7. Lonses The Company has a leasing agreement for a portion of the nuclear fuel for the Seabrook Plant.
This agreement has been capitalized for' financial reporting purposes. Additionally, the Company lesses certain property from a wholly-owned real estate subsidiary. Costs associated with leased equipment utilized in construction are capitalized as a cost of construction. Rentals charged to expense in 1984,1983 and 1982 were $4,398,000, $4,344,000 and $4,463,000, respectively, including rentals paid to the wholly-owned real estate subsidiary of $1,340,000 in 19S4. At December 31, 1984, estimated future minimum lease payments for noncancellable leases were
' as follows:
1985 . . . ........ . . . $ 5,869,000 1986 . .. . ... . .. , ... .. . 4,801,000 1987 .. ... .... . .. . . . .... . . .. 4,281,000 1988 . .. .. . .. . .. . 2,755,000 1989 .. .. .. . . .... .. . 2,488,000 Thereafter . . . .. 25,620,000
$45,814,000 47
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE NOTES TO FINANCIAL STATEhfENTS -(Continued)
- 8. Preferred Dividends in Arrears Since April 1984 the Company has omitted the quarterly dividends payable on shares of its Common and Prefeired Stocks. The Preferred Stock dividends are cumulative and the Articles of Agreement of the Company require that the dividends on Preferred Stock be paid before any dividend on Common Stock can be paid.
If and when dividends payable on Preferred Stock are in arrears in an amount equal to or more than four full quarterly dividends, the holders of shares of Preferred Stock have the right to elect a majority of the Board of Directors. This condition is now in effect. The table below indicates the amounts of dividends in arrears at February 15,1985: Dividend Rste Per Share Total 3.35% $3.35 $ 341,700 4.50 4.50 337,500 5.50 5.50 55,704 7.M 7.64 916,800 7.92 7.92 1,188,000 9.00 9.00 1,425,000 11.00 2.75 1,650,000 11.24 2.81 3,372,000 13.00 3.25 4,550,000 13.80 3.45 8,280,000 15.00 3.75 4,500,000 15.44 3.86 9,264,000 17.00 4.25 5,100,000
$40,981,304 "
- 9. Unaudited Quarterly Information The following quarterly information is unaudited, and, in the opinion of management, is a fair summary of results of operations for such periods.
In the first quarter of 1984, the Company ceased capitalization of all costs, including AFUDC, related to Unit 2 of the Seabrook Plant. The effect of this decision reduced 1984 net income by approxi-mately $35,200,000. Other variations between quarters reflect the seasonal nature of the Company's business. Three Afonths Ended December 31, , Septe mber 30, June 30, Afarch 31, 1984 1983 19M 1983 1984 1983 1984 1983 (Thousands Except Per Share Amounts) Operating Revenues $130,010 $126,773 $126,782 $117,247 $121,953 $98,829 $146,840 $120,635 Operating Income . 26,817 19,545 18,521 17,674 16,928 15,091 24,978 15,840 Net Income . 41,976 43,701 36,288 40,628 32,573 33,682 45,763 33,M7 Preferred Dividend Require-ments . . 10,244 9,701 10,246 8,204 10,246 8,022 10,247 7,069 Earnings Available for Com- i mon Stock . 31,732 34,000 26,042 32,424 22,327 25,660 35,516 26,578 Weighted Average Common and Common Equivalent Shares 40,207 36,926 37,191 36,788 37,190 31,777 37,073 30,510 Earnings Per Common and Common Equivalent Share 8 0.81 $ 0.92 $ 0.70 $ 0.88 $ 0.60 $ 0.81 $ 0.96 $ 0.87 I l 48 1
PUBLIC SERVICE COhtPANY OF NEW IIAAfPSHIRE NOTES TO FINANCIAL STATEAfENTS -(Continued)
- 10. Unaudited Information on the Effects of Changing Prices The following supplementary information is supplied in accordance with the requirements of the Statement of Financial Accounting Standards No. 33, Financial Reporting and Changing Prices, as amended. These data are not intended as substitutes for earnings reported on a historical basis; ther do, however, offer some perspective of the approximate effects of inflation rather than a precise measurement of the effects.
Conventional Current Cost IIistorical Average Cost 1984 Dollars (Thousands of Dollars) Operating revenues $525,585 $525,585 Operation and maintenance expense 336,168 336,161 Depreciation expense . 22,728 57,251 Federal and state taxes on income 56,119 56,119 23,330 23,330 Other taxes Interest expense-net . 87,281 87,281 Other income and deductions-net (156,637) (156,637) 368,985 403,508 Income from continuing operations (excluding reduction to net $122,077' recoverable cost) $156.600
$(41,367)
Ileduction to net recoverable cost . Gain from decline in purchasing power of net amounts owed . 43.601
$ 2,234 Net ..
Effect of increase in general price level .
$113,816 Increase in specific prices (current cost) of property, plant, and 90,833 equipment held during the year , ,
Excess of increase in general price level over increase in specific prices $ 22,963
- Including the reduction to net recoverable cost, the income from continuing operations on a current cost basis would have been $SO,710.
The current cost of plant was determined by indexing each major class of plant using the IIandy-Whitman Index of Public Utility Construction Costs. Current cost does not necessarily represent the replacement cost of existing productive capacity since utility plant is not expected to be replaced precisely in kind. The current year's provisions for depreciation on the current cost amounts of utility plant were determined by applying the Company's depreciation rates to the indexed plant amounts. Current cost amounts reflect changes in specific prices of plant from the date the plant was acquired to the present. At December 31,1984, current cost of pmperty, plant and equipment, net of accumu-lated depreciation, was $3,167,347,000 while historical net cost was $2,156,156,000. Fuel inventories, the cost of fuel used in generation, and the energy component of purchased power costs have not been restated from their historical cost in nominal dollars. Regulation limits the recovery of fuel and purchased power costs to actual cost incurred during the period. For this reason fuelinventories are effectively monetary assets. 49
i PUBLIC SERVICE CONIPANY OF NEW IIAAIPSIIIRE NOTES TO FINANCIAL STATEAIENTS -(Continued)
- 10. Unaudited Information on the Effects of Changing Prices - (Continued) l j Under currer, rate-making policies prescribed by the regulatory commissions to which the Com-pany is subject, m.!y the historical cost of utility property is included in the rate base upon which the Company is allowed to earn a return. Therefore, the cost of plant stated in terms of current cost that exceeds the historical cost of plant is not presently recoverable in rates, and is reflected as a reduction to net recoverable costs.
Five-Year Comparison of Selected Supplementary Financial Data Adjusted for Effects of Changing Prices STATED IN AVERACE 19S4 DOLLARS Year Ended December 31, 1981 1983 1952 1981 1950 (Thousands except Per Share Amounts) Operating rcvenues $525,585 $4S3,228 $455,502 $503,534 $ 142,747 Current cost information income from continuing operations (excluding re-duction to net recoverable cost) 122,077 122,003 65,079 56,927 44,6S6 Income per average common and common equiva-lent share (after dividend requirements on pre-x ferred stock and excluding reduction to net recov-erable cost) 2.10 2.60 1.62 1 60 1.61 Inc*ase in general price level over (under) in-cr%se in specific prices 22,963 (28,053) (66,742) 20,729 101,100 Lt as ts at year-end at net recoverable cost 912,929 632,151 621,100 577,936 528,210 Genmln ormation Gain lum' decline in purchasing power of net
'*ed 43,601 37,357 30,131 65,163 90,286 Cash dividena,leclared per common share $ 0.53 $ 2.21 $ 2.28 $ 2.42 8 2.67 M "' " " ommon share at year-end $ 3.70 $ 11.79 $ 18.62 $ 16.44 $ 17.31
^*"'*""
- ice index 311.1 298.4 269.1 272.4 246.8 i
PUBLIC SERVICE COAIPANY OF NEW IIAAfPSHIRE NOTES TO FINANCIAL STATEAfENTS -(Continued)
- 10. Unaudited Information on the Effects of Changing Prices - (Continued)
Under current rate-making policies prescribed by the regulatory commissions to which the Com-pany is subject, only the historical cost of utility property is included in the rate base upon which - the Company is allowed to earn a return. Therefore, the cost of plant stated in terms of current cost that exceeds the historical cost of plant is not presently recoverable in rates, and is reflected as a reduction to net recoverable costs. Five-Year Comparison of Selected Supplementary Financial Data Adjusted for Effects of Changing Prices STATED IN AVERAGE 1984 DOLLARS Year Ended December 31, 1984 1983 1992 1981 19SO (Thousands except Per Share Amounts) Operating revenues $525,585 $483,228 $455,502 $503,534 $442,747 Current cost information Income from continuing operations (excluding re-duction to net recoverable cost) 122,077 122,903 65,079 50,927 44,686 Income per average common and common equiva. lent share (after dividend requirements on pre-ferred stock and excluding reduction to net recov-erable cost) 2.16 2.00 1.02 1.00 1.61 Increase in general price level over (under) in-crease in specific prices 22,963 (28,058) (66,742) 20,729 101,100 Net assets at year-end at net recoverable cost 942,929 832,154 621,100 577,936 528,210 Generalinformation Cain from decline in purchasing power of net amounts owed 43,601 37,357 30,131 65,163 90,286 Cash dividends declared per common share $ 0.53 $ 2.21 $ 2.28 $ 2.42 8 2.67 Af arket price per common share at year-end $ 3.70 $ 11.79 $ 18.62 $ 16.44 $ 17.31 Average consumer price index . 311.1 298.4 289.1 272.4 246.8 50 s _ , __. 2. . ,- _
I REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS The Board of Directors Penuc SElWICE CoMPM OF NEW IIAMPSHIRE We have examined the balance sheets and statements of capitalization of Public Service Company of New IIampshire as of December 31,19S4 and 19S3 and the related statements of earnings, changes in financial position and changes in common stock equity for each of the years in the three-year period ended December 31,19S4. Our examinations ~e made in accordance with generally accepted auditing standards, and accordingly, included such i of the accounting records and such other
; auditing procedures as we considered necessary in tl Scumstances.
As more fully discussed in Note 1, the Alarch 1,1 , cost estimate for the Seabrook Plant was substantially higher than the previous estimate. The Coi.. pan /s short-term lines of bank credit were subsequently terminated and dividends on its common and preferred stocks have been omitted since April 1984. As a result, the Company believes that it must satisfy all of its financing requirements through the issuance of debt securities. In 1984 the Company completed financings that enabled it to pay its share of the cost of constructing Seabrook Unit 1 during 19S4. The Company is seeking ap-4 proval from the New Ilampshire Public Utilities Commission for an additional financing to meet its estimated remaining Seabrook Unit I construction costs. The Company is unable to determine whether such approval will be granted. If additional financing is not obtained the Company will be unable to ftmd its share of the cost to complete construction of Unit 1 or to satisfy covenants in existing obliga-tions. The commercial operation of Unit 1 is dependent upon many factors, some of which are beyond the Company's c<mtrol. Those factors include the willingness and ability of the other owners of the Seabrook Plant to continue to fulfill their contractual commitments and favorable decisions from various regulatory bodies. The commercial operation of Unit 1, obtaining adequate rate relief upon commercial operation, and satisfying covenants in existing obligations are necessary for the Company to continue in existence. The accompanying financial statements do not include any adjustments relating to the rec (werability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence. There are currently no viable plans for the completion of Seabrook Unit 2. In 1984 the New Ilampshire Supreme Court ruled that an existing statute prohibits recovery from ratepayers of any of the costs of a cancelled plant. The court did not decide whether the existing statute is con-stitutional. The Company intends to contest the constitutional question but it cannot predict how it will be resolved. Even if the constitutional question is resolved favorably, the Company cannot predict what, if any, recovery would be allowed. Any unrecovered costs would be charged against earnings. In our opinion, subject to the effects on the 1984 and 1983 financial statements of such adjustments, if any, as might have been required had the outcome of (1) the uncertainty about the recoverability and classification of recorded asset amounts and the amounts and classification of liabilities referred to in the second preceding paragraph, and (2) the uncertainty about the recovery of Unit 2 costs referred to
- in the preceding paragraph, been known, the aforementioned financial statements present fairly the financial position of Public Service Company of New Ilampshire at December 31,1984 and 19S3 and the results of its operations and changes in its financial position for each of the years in the three-year period ended December 31,19S1, in conformity with generally accepted accounting principles applied on a consistent basis.
i PENT, hIAMv1CK, MrrcnEr.L & Co. I Boston, hIassachusetts l j February 11,1985 51 l
r Item 9. DISAGREEAIENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE Not Applicable. PART III Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF TIIE REGISTRAN'I' , The information required by this item and not given in Item 4A, Executive Ogicers of the Registmnt, is set forth under the caption ELECTION OF DIRECTORS in the Company's definitive proxy statement for the Company's 1985 Annual hiceting of Stockholders. Such information is hereby incorporated herein and specifically made a part hereof by reference. Item II. EXECUTIVE CONIPENSATION The information required by this item is set forth under the captions EXECUTIVE CONIPEN-SATION, PENSION PLAN, Eh!PLOYEE STOCK OWNERSIIIP PLAN, DEFERRED COhlPEN-SATION PLAN FOR DIRECTORS AND OFFICERS and ADDITIONAL BOARD OF DIRECTORS INFORhfATION in the Company's definitive proxy statement for the Company's 19s3 Annual hieet-ing of Stockholders. Such information is hereby incorporated herein and specifically made a part hereof by reference. Item 12. SECURITY OWNERSIIIP OF CERTAIN BENEFICIAL OWNERS AND AIANAGEAIENT The information required by this item is set forth under the captions ELECTION OF DIRECTORS and OWNERSIIIP OF SIIARES OF STOCK in the Company's definitive proxy statement for the Company's 1985 Annual hieeting of Stockholders. Such information is hereby incorporated herein by reference and specifically made a part hereof by reference. Item 13. CERTAIN RELATIONSIIIPS AND RELATED TRANSACTIONS Not Applicable. l I i 52
r1 PART IV Item 14. EXIIIBITS, FINANCIAL STATEMENT SCILEDULES, AND REPORTS ON FORM 8-K The following documents are filed as a part of this report: Financial Statements (see Item 8): Statements of Earnings, Years ended December 31,1984,1983 and 1982 Balance Sheets, December 31,1984 and 1983 Statements of Capitalization, December 31,1984 and 1983 Notes to Statements of Capitalization Statements of Changes in Financial Position, Years ended December 31,1984,1983 and 1982 Statements of Changes in Common Stock Equity, Years ended December 31,1984,19S3 and 1982 Notes to Financial Statements Report of Independent Certified Public Accountants Financial S'atement Schedules Schedule V - Utility Plant, Years ended December 31,1984,1983 and 1982 Schedule VI - Accumulated Provision for Depreciation, Years ended December 31, 1984, 1983, and 1982 Schedule VIII-Valuation and Qualifying Accounts, Years ended December 31,1984,1983 and 1982 Report of Independent Certified Public Accountants on Financial Statement Schedules All other schedules are omitted as the required information is not applicable or is included in the financial statements or related notes. Exhibits The exhibits which are filed with this Form 10-K or which are incorporated herein by refer-ence are set forth in the Exhibit Index which appears in Part IV of this report beginning at pc.ge 59. Reports on Form 8-K No Current Reports on Form 8-K were flied during the fourth quarter of 1984. 53
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE SCIIEDULE V-UTILITY PLANT
. Years Ended December 31,1984,1983 and 1982 Balance At Other Balance Beginning Additions Changes-Add at End Classification of Period At Cost Retirements (Deduct) of Period (Thousands of Dollars)
Year Ended December 31,1984 Intangibles . $ 45 $ - $- $ - $ 45 Cenerating Plant - Steam . 200,322 27,580 1,486 18 226,434 Cenerating Plant - IIydro . 30,257 541 7 - 30,791 Cenerating Plant - Other
. 8,411 - - - 8,411 Transmission . 151,607 1,289 317 (168) 152,411 Distribution . . , , 214,277 17,331 2,860 (2) 228,746 Ceneral . 32,874 2,894 549 89 35,308 Plant IIeld for Future Use . 1,895 -
35 80 1,940 Unfinished Construction In Progress 1,033,831 271,047 - (43) 1,304,804 Suspended 285,739 10,631 - - 296,401 Nuclear Fuel In Progress 61,251 11,071 - 11,829 84,751 Suspended 17,313 - - (11,814) 5 499 Total , . $2,037,822 $342,984 $5,254 $ (11) $2,375,541 Year Ended December 31,1983 Intangibles . . . $ 45 $ -
$- $ - $ 45 Generating Plant - Steam 197,414 7,039 3,338 (793) 200,322 .
Cencrating Plant - Ilydro . . . . 23,544 6,753 45 5 30,257 Cenerating Plant - Other . . 8,408 3 -- - 8,411 Transmission . . 133,496 18,268 257 100 151,607 Distribution . . 201,484 15,776 2,332 (651) 214,277 Ceneral . , 27,119 7,545 1,790 - 32,874 Plant IIeld for Future Use . 1,9 14 - - (49) 1,895 Unfinished Construction . . . 961,350 358,220 - - 1,319,570 Nuclear Fuel . 66,259 12.305 - - 78,564 Total . $1,621,063 $425,909 $7,762 $ (1,388) $2,037,822 i Year Ended December 31,1982 ' Intangibles . . , 4 45 $ - $- $ - $ 45 l Cenerating Plant - Steam . 189,077 9,301 964 - 197,414 Generating Plant - Ilydro . 22,861 837 154 - 23,544 Cenerating Plant - Other 8,409 - 1 - 8,408
' Transmission .. 125,008 9,035 230 (317) 133,496 Distribution .. . . . 192,426 11,111 2,171 95 201,484 Ceneral . 23,561 4,252 694 - 27,119 Plant IIeld for Future Use . 1,684 (57) -
317 1,944 Unfinished Construction . ... 716,531 259,623 - (14,804) 961,350 Nuclear Fuel . . 55,995 10,843 - (579) 66,250 Total . . . .. . $1,335,597 $30s,968 $4,214 $(15,288) $1,621,063 54 ,
Q
~ ' -
1 t PUBLIC SERVICE COMPANY OF NEW IIA.\1PSIIIRE SCIIEDULE VI- ACCU 51ULATED PROVISION FOR DEPRECIATION Years Ended December 31,1981,1983 and 1982
. Additions Other Balance At Charged to Changes Balance Beginning Costs and - Add at End Description of Period Expenses Retirements (Deduct) of Period (Thousands of Dollars)
Accumulated Provision for Deprecia-tion of Electric Plant: 1984 , . $201,044 $22,728 $5,251 $ 837 (A) $219,355 1983 . 188,697 21,016 7,7&1 (935)( A) 201,044 1982 173,095 19,558 4,201 (355)(A) 188,697 1984 1983 1982 (A) Itepresents: . Depreciation charged to automotive clearing . $1,006 $ 1,006 $ 906 Depreciation on plant units acquired 2 2 3 Depreciation charged to construction . 261 In1 51 Net salvage . (432) (1,135) (1,352) Non-operating reserve transfer - (758) - Plant sold . - (217) 37 l
- $ 837 $ (935) $ (355) 4 I-t 1
s 4 i , 55
...y,w -, _
, .m e . - , - e = '
p. l PUBLIC SERVICE COMPANY OF NEW EulPSIIIRE SCIIEDULE VIII-VALUATION AND QUALIFYING ACCOUNTS Years Ended December 31,1984,1993 and 1982 l Addhions Balance at Charged to Charged Balance Beginning Costs and to Other at End 1 Description of Period Expenses Accounts Deductions of Period ('Ihousands of Dollars) Reserves Deducted From Related Assets: Provision for Uncollectible Accounts 1984 $ 875 $1,273 $- $1,189(A) $ 959 1983 510 1,400 - 1,035(A) 875 1982 . 330 1,095 . 1,515(A) 510 Accumulated Provision for Depreciation of Non-Operating Property . 1984 . . $1,369 $ - $- $ 773(E) $ 596 1983 944 26 754(B) 355(E) 1,369 1982 947 22 - 25(E) 944 Reserve Tncluded Under " Deferred Credits
- Other":
Reserve for Injuries and Damages . 1984 $ 630 $ 200 $- 4 469(D) $ Sol 1983 . 616 480 - 466(D) 630 1982 , 441 680 178(C) 683(D) 616 (A) Accounts written off, net of recoveries. (B) Non-operating reserve transferred to operating. (C) Charged principally to construction and retirement accounts. (D) Losses charged to reserve. (E) Sale of non-operating property. 2
\
t REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
- ON FINANCIAL STATEMENT SCHEDULES The Board of Directors Pusuc SERVICE CONIPANY OF NEW IIAh!PsIURE Under date of icebruary 11,1985, we reported on the balance sheets and statements of capitali-zation of Public Service Company of New Ilampshire as of December 31,19S4 and 19S3, and the related statements of earnings, changes in financialt wsition, and changes in common stock equity for each of the years in the three-year period ended December 31, 1984. In connection with our examinations of the aforementioned financial statements, we also examined the related financial state- - ment schedules as listed in the index under Item 14.
In our opinion, subject to the effects on the 1984 and 1983 schedules of such adjustments, if any, as might have been required had the outcome of (1) the uncertainty about the recoverability and clas-si6 cation of recorded asset amounts and the amounts and classification of liabilities, referred to in the second paragraph of our report on page 51 of this Form 10-K, and (2) the uncert.ainty about the recovery of Unit 2 costs, referred to in the third paragraph of our report on page 51 of this Form 10-K, been known, the related financial statement schedules, when considered in relation to the basic financial statements taken as a whole, present fairly in all material respects the information set forth therein. PEAT, hlARWICK, MITCHEU & CO. 1 Boston, Massachusetts February 11,1955 i e 57 i
SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. PUBLIC SERVICE COh!PANY OF NEW hah!PSHIRE R. J. HAmuSON By . . .
........R. J. Harrison, President. . . . . . . . . .
Date: February 14,1985 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. Signature Title Date R. J. HARRISON President and Chief Executive February 14,1985
. Officer; Director
..........R. J. Harrison (Principal Executive OGlcer)
C. E. BAYI.ESS Financial Vice President February 14,1985
'C.I. kiess l (Principal Financial Officer)
W. T. FRAIN, }R. Vice President February 14,1985 W. T. Frain, Jr (Principal Accounting'Offleer) HII.ARr P. CI.EVEI.AND Director February 14,1985
' iiiiaryV.'d:levha's n Director February ,19S5
..... George A. Dorr, Jr.
JOHN C. Durrrrr Director February 14,1985 John C. Duffett Director February ,19S5
............. Philip S. Durilap PRISCH1A E. FRECHETTE Director February 14,1985
.................Priscilla K. Frechette '
PnII.IP B. RYAN Director February 14,1985
........... Philip B. Ryan Director February ,19S5
..... William J. Scharffenberger JOuN T. SCnIrratAN Director February 14,1985 John T. Schiffman Wn.I.IAM hl. SCRANTON Director February 14,1985 .
William M. Scranton EDWARD bl. SHAPIRo Director February 14,1935 Edward M. Shapiro Wn11AM C. TAILMAN Director February 14,1985 William C.Tallman Director February ,19S5 Hugh C.Tuttle 58 L.._ __ _ _ . _
EXIIIBIT INDEX The following designated exhibits 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 1931 or the Public Utility IIolding Company Act of 1935 and are referred to and incorporated herein by reference to such filings. SEC Form 10 K Erbibit Docket Page Nos. Exhibit 3. Articles of Incorporation and by. lares incorporated herein by reference: 3.1. Articles of Agreement, as amended. 4.1 2-S679s Filed herencith: 3.2. By-laws, as amended. Exhibit 4. Instruments defnksg the rights of security holders, including indentures incorporated herein by reference: 4.1. General and Refimding hfortgage Indenture dated as of August 15, 1978 between the Company and New England hierchants Na-tional Bank, Trustee. 2.32 2-62S56 4.1.1. First Supplemental Indenture to the General and Refunding .\1ortgage Indenture dated as of September 15,1979. 2.32 2-65427 4.1.2. Second Supplemental Indenture to the Gen-eral and Refunding Alortgage Indenture dated as of January 15,19S0. 2.5 2-66334 1.1.3. Third Supplemental Indenture to the General and Refunding .\tortgage Indenture dated as of December 1,19S0. 2.3.3 2-69947 4.1. l. Fourth Supplemental Indenture to the Gen-eral and Refunding hfortgage Indenture dated as of June 1,19s2. 4.1.4 2-77577 1.1.5. Fifth Supplemental Indenture to the General and Refunding Afortgage Indenture dated as of June 19,19S1. 4.1.5 2-92102 4.1.6. Sixth Supplemental Indenture to the General and Refunding hfortgage Indenture dated as of August 15,10S1. 1.1.6 2-92102 4.2. First Afortgage dated as of January 1,1913 between the Company and Old Colony Trust Company, Trustee. 4.4 2-81165 4.2.1. First Supplemental Indenture to the Co2n-pany's First Afortgage dated as of December 1,1943. A-la 70 6S4 4.2.2. Second Supplemental Indenture to the Com-pany's First hfortgage dated as of June 1, 1947. 7.3 2-7066 4.2.3. Third Supplemental Indenture dated as of January 1,19 IS. 7.4 2-7324 4.2.4. Fourth Supplemental Indenture dated as of October 1,194S. 7.5 2-765S 59
i SEC Form 10-K Exhibit Docket Page Nos. 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 1,1951. 7.7 2-5969 1.2.7. Seventh Supplemental Indenture dated as of September 1,1953. 4.9 2-10426 4.2.8. Eighth Supplemental Indenture dated as of November 1,1951. 4.4.8 2-81165 4.2.9. Ninth Supplemental Indenture dated as of June 1,1956. 4.4.9 2-81165 4.2.10. Tenth Supplemental Inderaure 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 4.2.12. Twelfth Supplemental Indenture dated as of November 1,1960. 2.14 2-20451 4.2.13. Thirteenth Supplemental Indenture dated as of July 1,1962. 4.4.13 2-S1165 4.2.14. Fourteenth Supplemental Indenture dated as of January 1,1966. 4.4.14 2-81165 4.2.15. Fifteenth SupplementalIndenture dated as of October 1,1966. 4.1.15 2-81165 4.2.16. Sixteenth Supplemental Indenture dated as of June 1,1967. 4.4.16 2-81165 4.2.17. Seventeenth Supplemental Indenture dated as of November 1,196S. 2.19 2-30554 4.2.18. Eighteenth Supplemental Indenture dated as of November 1,1970. 4.20 2-3S646 4.2.19. Nineteenth Supplemental Indenture dated as of June 15,1972. 2.22 2-50198 4.2.20. Twentieth Supplemental Indenture dated as of Nfarch 1,1974. 2.23 2-5019s 4.2.21. Twenty-First Supplemental Indenture dated as of Octaber 15,1974. 2.24 2-51999 4.2.22. Twenty-Second Supplemental Indenture dat-ed as of December 1,1974. 2.25 2 54646 4.2.23. Twenty-Third Supplemental Indenture dated as of Alarch 1,1975. 2.26 2-54646 4.2.24. Twenty-Fourth Supplemental Indenture dated as of October 15,1975. 2.27 2-572S9 4.2.25. Twenty-Fifth Supplemental Indenture dated as of October 15,1976. 2.28 2-59516 4.2.20. Twenty-Sixth Supplemental Indenture dated as of November 1,1976. 2.29 2-59516 4.2.27. Twenty-Seventh Supplemental Indenture dated as of hfay 1,1978. 2.30 2-61924 4.2.28. Twenty-Eighth Supplemental Indenture dated as of August 15,197S. 2.31 2-62S56 4.2.29. Twenty-Ninth Supplemental Indenture dated as of September 15,1979. 2.33 2-65127 4.2.30. Thirtieth Supplemental Indenture dated as of January 15,19S0. 2.4.30 2-66492 60
SEC Form 10-K [ Exhibit Docket Page Nos. 4.2.31. Thirty-First Supplemental Indenture dated as of December 1,19S0. 2.4.31 2-69947 4.2.32. Thirty-Second Supplemental Indenture dated as of June 1,1952. 4.2.32 2-77577 4.3. Indenture dated as of August 15,1981 among PSNIl International Finance N.V. and PSNII Annual Report International Finance ll.V., as Issuers the 4.3 1-6392 for 1981 Company, as Guarantor; and Aforgan Guar-anty Trust Company of New York, as Trustee. 4.4. Promissorv Note dated August 15,19S1, from t ie Comp'any to PSNII International Finance 4.4 E t
'f'* for [98}
4.5. Promissorv* Note dated August 15,19s1, from tl Company to PSNII International Finance 4.5 figi e 0rt 9g 4.6. Indenture dated as of October 1,19S2 be-tween the Company and Alanufacturers IIan-over Trust Company, Trustee, relating to the 15%9b Debentures duc 19SS. 4.3 2-79411 4.7. Indenture dated as of February 1,19S3 be-tween the Company and Alanufacturers IIan-over Trust Company, Trustee, relating to the 14%?b Debentures due 1991. 4.6 2-81367 4.8. Indenture dated as of November 1,19s3 be-tween the Company and hianufacturers Ilan- Registration over Trust Company, Tructee, relating to the Statement on 159b Debentures due 2003. Form S-A
< relating to 15Tc Debentures due 2003 (File No.1-&392) 4.9. Trust Indenture dated as of December 1,19s3 between the New Ilampshire Industrial De-velopment Authority and State Street Bank '
and Trust Company, Trustee, relating to the Pollution Control Revenue Bonds,19s3 Series A (Public Service Company of New IIamp- 4.9 Annual Report shire Project). 1-6392 for 19s3 4.9.1. Loan Agreement dated as of December 1, 1983 between the Company and the New Ilampshire Industrial Development Authority relating to loans to the Company of the pro'- 4.9.1 Annual Report ceeds of the Imnds issued under Exhibit 4.9. 1-G392 for 10s3 4.10. Trust Indenture dated as of October 15,19S4 between the Company and Alidlantic Na-tional Bank, Trustee, relating to the 17%Cb Debentures due 2001. 4.10 2 92102 4.12. Warrant Agreement dated as of October 15, 19s4 between the Company and The First National Bank of Boston, relating to Warrants to purchase 1S,375,000 shares of Common Stock. 4.12 2-92102 61
L l SEC Form 10-K Exhibit Docket Page Nos. Exhibit 10. Material Contracts incorporated herein by reference: 10.1. Nuclear hfaterial Lease and Security Agree-ment dated as of June 15.19S3 between the Annual Report Company and PruLease, Inc. 10.2 1-6392 for 19S3 10.1.1. Amendment No. I to Exhibit 10.1 dated as of August 23,1984. 10.1.1 2-92102 10.2. Form of New England Power Pool Agree-ment dated as of September 1,1971 as amend- Annual Report [ ed to November 15,19S3. 10.3 1-6392 for 19S3 (' 10.3. Agreement dated October 13, 1972 for Joint Ownership, Construction and Operation of Pilgrim Unit No. 2 among Boston Edison Company and other utilities including the Company. 5.3(d) 2-45990 10.3.1. Amendments Nos. I and 2 to Exhibit 10.3 dated September 20,1973 and September 15, 1974, respectively. 5.14 2-51999 10.3.2. Amendment No. 3 to Exhibit 10.3 dated December 1,1974. 13-45 2-54449 10.3.3. Amendments Nos. 4 and 5 to Exhibit 10.3 dated February 15, 1975 and April 30,1975, 13-52-A respectively. 13-52-B 2-53819 10.3.4. Amendment No. 6 to Exhibit 10.3 dated June 30,1975. 13-45(a) 2-54449 10.3.5. Amendment No. 7 to Exhibit 10.3 dated November 30,1975. 5.9(f) 2-55748 10.3.6. Addendum to Exhibit 10.3 as of October 1, Annual Report 10.1 1-2301-2 for 1976 1976. 10.4. Agreement for Sharing Costs Associated with Pilgrim Unit No. 2 Transmission dated Octo-ber 13,1972 among Boston Edison Company and other utilities including the Company. 5.3(e) 2-45990 10.4.1. Addendum to Exhibit 10.4 as of January 17, Annual Report 151 1-2301-2 for 1975 1975. 10.4.2. Addendum to Exhibit 10.4 dated as of Octo- Annual Report 10.o 1-2301-2 for 1976 ber 1,1976. 10.5. Agreement dated as of h!ay 1,1973 for Joint Ownership, Construction and Operation of New Ilampshire Nuclear Units among the Company and other utilities. 13-57 2-4S966 10.5.1. Amendments to Exhibit 10.5 dated May 24, 1974. June 21,1974 and September 25, 1974. 5.15 2-51999 10.5.2. Amendments to Exhibit 10.5 dated October 25, 1974 and January 31,1975. 5.23 2-54646 10.5.3. Sixth Amendment to Exhibit 10.5 as of April 18,1979. 5.4.3 2-64294 10.5.4. Seventh An'endment to Exhibit 10.5 dated as of April 18,1979. 5.4.4 2-61294 10.5.5. Eighth Amendment to Exhibit 10.5 dated as of April 25,1979. 5.4.5 2-64815 62
SEC Fonn 10-K Exhibit Docket Page Nos. 10.5.6. Ninth Amendment to Exhibit 10.5 dated as of June 8,1979. 5.4.6 2-64S15 10.5.7. Tenth Amendment to Exhibit 10.5 dated as of October 10,1979. 5.4.2 2-66334 10.5.8. Eleventh Amendment to Exhibit 10.5 dated as of December 15,1979. 5.4.8 2-66492 10.5.9. Twelfth Amendment to Exhibit 10.5 dated as of June 16,19S0. 5.4.9 2-68168 10.5.10. Thirteenth Amendment to Exhibit 10.5 dated as of December 31,19S0. 10.6.10 2-70579 10.5.11. Fourteenth Amendment to Exhibit 10.5 dated Annual Report 10.6.11 as of June 1,19S2. 1-6392 for 1982 10.5.12. Fifteenth Amendment to Exhibit 10.5 dated as of April 27,1984. 10.5.12 2-92102 10.5.13. Sixteenth Amendment to Exhibit 10.5 dated as of June 23,19S4. 10.5.13 2-92102 10.5.14. Agreement for Seabrook Project Disbursing Agent. 10.5.14 2-92102 10.6. Transmission Support Agreement dated as of May 1,1973 among the Company and other utilities with respect to New IIampshire nuclear units. 13-58 2-48966 10.7. Sharing Agreement-1979 Connecticut Nu-clear Unit dated September 1,1973 to which the Company is a party. 6.43 2-50142 10.7.1. Amendment to Exhibit 10.7 dated August 1, 1074. 5.45 2-52392 10.7.2. Amendment to Exhibit 10.7 dated December 15,1975. 7.47 2-60S06 10.S. Agreement et.ecuted on January 23,1973 for the design and furnishing of the nuclear steam supply systems for the Company's Sea- C A """"I *P 't brook plant between the Company and West- 1-6392 for 1972 inghouse Electric Corporation. 10.9. Agreement dated November 1,1974 for Joint Ownership, Construction and Operation of William F. Wyman Unit No. 4 among Central Maine Power Company and other utilities in-cluding the Company. 5.16 2-52900 10.9.1. Amendment to Exhibit 10.9 dated June 30, 1975. 5.48 2-55458 10.9.2. Amendment to Exhibit 10.9 dated as of Au-gust 16,1976. 5.19 2-58251 10.9.3. Amendment to Exhibit 10.9 dated as of De-cember 31,1978. 10.10. Transmission Support Agreement dated No-I vember 1,1974 among Central Maine Power Company and other utilities including the Company. 13-57 2-54449 63
l l SEC Form 10-K Exhibit Docket Page Nos. 10.11. Transmission Support Agreement dated Au-gust 9,1974 between the Connecticut Light and Power Company and other utilities in-cluding the Company. 5.24 2-54646 10.12. Pension Plan of Public Service Company of New IIampshire, amended effective as of Jan- 10.14 f"["ffor f981 uary 1,1981. 10.12.1. First Amendment to Exhibit 10.12. 10.12.1 2-92102 10.13. Term Loan Agreement dated as of December S 977, among the Company and seven F Anyl[e@rt 10.13.1. Amendment No. I to Exhibit 10.13 dated as of December 26,1978. 5.16.1 2-62856 10.13.2. Amendment No. 2 to Exhibit 10.13 dated as of December 2S,1979. 5.15.2 2-66334 10.13.3. Amendment No. 3 to Exhibit 10.13 dated as of December 1,19S0. 10.17.3 2-70579 10.13.4. Amendment No. 4 to Exhibit 10.13 dated as Annual Report of December 30,19S1. 10.16.4 1-6392 for 19S1 10.13.5. Amendment No. 5 to Exhibit 10.13 dated as Annual Report 10.16.5 of January 7,19S3. 1-6392 for 1982 10.13.6. Amendment No. 6 to Exhibit 10.13 dated as Annual Report 10.16.6 of February 4,19S3. 1-6392 for 19S2 10.13.7. Amendment No. 7 to Exhibit 10.13 dated as Annual Report of hiarch 7,1983. 10.16.4 1-6392 for 1982 10.13.8. Amendment No. S to Exhibit 10.13 dated as Annual Report 10.15.8 1-6392 for 19S3 of April 11,1983. 10.13.9. Amendment No. 9 to Exhibit 10.13 dated as Annual Report of April 25,19S3. 10.15.9 1-6392 for 19S3 10.13.10. Amendment No.10 to Exhibit 10.13 dated as of June 22,19S4. 10.13.10 2-92102 10.13.11. Amendment and Restatement of Exhibit 10.13 dated as of August 23, 1984. 10.13.10 2-92102 10.14. Eurodollar Loan Agreement dated August 25, 19S0. 5.16 2-69370 10.14.1. Amendment and Restatement of Exhibit 10.14 Annual Report dated as of December 8,1951. 10.17.1 1-6392 for 1981 10.14.2. Amendment No. I to Exhibit 10.14.1 dated as Annual Report 10.16.~o of August 23,1952. 1-6392 for 1982 10.14.3. Agreement dated as of August 23, 19S4 amending and restated Exhibit 10.14 10.14.3 2-92102 10.15. Employee Stock Ownership Plan and Trust. 10.19 2-70579 10.16. Agreement dated as of June 20,19Si hetween the Company and United Engineers & Con-structors, Inc. 10.16 2-92102 64
l SEC Form 10-K Exhibit Docket Page Nos. 10.17. Secured Revolving Credit Agreement dated as of August 23,19S4 among the Company, seven banks and PruLease, Inc. 10.17 2-92102 10.17.1. Security Agreement dated as of August 23, 1984 among the Company, seven banks and Prudential Interfunding Corp. 10.17.1 2-92102 Exhibit 11. Statement re computation of per share earnings Filed herettith: 11.1. Calculation of Earnings per Common and Common Equivalent Share. Exhibit 12. Statement re computation of ratios Filed herettith: 12.1. Calculation of Ratios of Earnings to Fixed Charges. 65
EXIIIBIT 11.1 PUBLIC SERVICE CONIPANY OF NEW IIAAIPSIIIRE CALCULATION OF EARNINGS PER CONINION AND CONINION EQUIVALENT SIIARE For the Year Ended December 31, 1984 1983 1982 (Thousands except Per Share Amounts) Reconciliation of earnings available for common to amount used in calculation Earnings Available for Common . $115,617 $118,662 $69,470 Add: Interest on long-term debt, net of tax effect on application of assumed proceeds from the exercise of warrants in excess of 20% limitation 633 - - Estimated increase in allowance for funds used during con-struction 160 - - Adjusted Earnings Available for Common . $116,410 $118,662 $69,470 Reconciliation of weighted average number of shares outstanding to amount used in pro forma calculation Weighted average number of shares outstanding 37,162 34,026 25,458 Add: Shares issuable from the assumed exercise of warrants in excess of 20% limitation (a) 758 - - Adjusted . 37,920 34,026 25,458 Earnings per Common and Common Equivalent Share . $3.07 $3.49 $2.73 (a) 18,375,000 shares from the assumed exercise of warrants less 20To limitation of assumed repur-chases (7,438,2I3) weighted for the period of time since the issuance of warrants.
EXIIIBIT 12.1 PUBLIC SERVICE CONIPANY OF NEW IIANIPSIIIRE CALCULATION OF RATIOS OF EARNINGS TO FIXED CIIARCES Year Ended December 31, 1984 1983 1982 1981 19S0 (Thousands of Dollars) Net Income $156,600 $151,65S $ 91,623 $ 77,187 $ 59,847 Add: Provision for Taxes Based on Income 6,9 10 4,783 4,764 4,6SS 5,526 Taxes Applicable to AFUDC 34,177 28,2S2 25,596 21,333 17,093 Fixed Charges 12S,S5S 93,209 81,667 77,459 62,6S1 326,575 277,932 203,650 183,667 115,147 Deduct: Undistributed Earnings of AGliated Companies (722) 2,096 2,313 790 (48) Earnings Available for Fixed Charges $327,297 $275,836 $201,337 $182,S77 $145,195 Fixed Charges Interest on Long-Term Debt $105,4S2 $ 85,619 $ 61,169 $ 50,229 $ 39,711 Other Interest 21,920 6,122 19,015 25,959 21,S47 Interest Component of Rental Charges 1,456 1,43S 1,4S3 1,2 11 1.123 Total Fixed Charges $128,S58 $ 93,200 $ 81,667 $ 77,459 $ 62,6S1 Ratios 2.54 2.96 2.47 2.36 2.32 1 L . - _ _ _ _ _ _ _ _ _ _ _ . _ _ _
General Information Annual Meeting of Shareowners All shareowners are urged to attend the Annual Meeting to be held on I Thursday, March 21,1985, at 9:30 a.m. EST, at the Sheraton-Tara Hotel Ballroom, Nashua, NH (Route 3 - Everett Turnpike, Exit 1 to Tara Boulevard). Description of Business Public Service Company of New Hampshire is the largest electric utility in New Hampshire, supplying electricity to approximately three-quarters of the state's population. The Company distributes and sells electricity at retailin approximately 200 cities and towns in the state. The Company also sells electricity at wholesale to seven other utilities. Annual Report and Statistical Supplement This 1984 Annual Report has been approved by the Board of Directors. The 1984 Statistical Supplement, containing corporate statistics for the last 10 years, will be available after March 21,1985. If you would like a copy, or have questions about the Annual Report or the Company, please write to Russell A. Winslow, Secretary, Public Service of New Hampshire, P.O. Box 330, Manchester, NH 03105. Stock Exchange Listing Shares of $5 par value common stock and $25 par value preferred stock are listed on the New York Stock Exchange. The Company's symbol on the exchange is PNH. Shareowner Information Shareowner inquiries regarding change of address, stock transfer re-quirements, lost or stolen certificates, or other account information should be directed to the Transfer Agent as follows: The First National Bank of Boston ' P.O. Box 644 Boston, MA 02102
I Bulk Rate U.S. Postage Public Service of New Hampshire M BoSt 1000 Elm Street, Manchester, New Hampshire 03105 Permit No. 2 l
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FERC FORM NO.1: ANNUAL REPORT OF MAJOR ELECTRIC UTILITIES, LICENSEES AND OTHERS This report is mandatory under the Federal Power Act. Sections 3,4(a),304 and 309, and 18 CFR 141.1. Failure to report may result in criminal fines, civil penalties and other sanctions as provided by law. The Federal Energy Regulatory Commis-sion does not consider this report to be of a confidential nature. Exact Legal Name of Respondent (Company) Year of Repen VERHONT ELECTRIC GENERATION & TRANSHISSION COOPERATIVE, INC. Dec.31,19 84 _ FERC FORM NO. I (REVISED 12-84)
s INSTRUCTIONS FOR FILING ' HIE FERC FORM NO.1 GENERAL INFORMATION ~
- 1. Purpose This form is a regulatory support requirement (18 CFR 141.1). It is designed to collect financial and opera-tional information from public utilities, licensees and others subject to the jurisdiction of the Federal Energy Regulatory Commission. This report is also secondarily considered to be a nonconfidential public use form supporting a statistical publication (Statistics of Privately Owned E:actric Utilities in the Unitrd States) published by the Energy Information Administration.
- 11. Who Must Submit Each Major public utility, licensee, or other, as classified in the Commission's Uniform System of Accounts Prescribed for Public Utilities and Li nsees Subject To the Provisions of The Federal Power Act (18 CFR 101) must submit this form.
Note: Major means having, in the previous calendar year, sales or transmission servim that exaeds one of the following: (1) One million megawatt hours of total annual sales, (2) 100 megawatt hours of annual sales for resale, (3) 500 megawatt hours of annual gross interchange out, (4) 500 megawatt hours of wheeling for others (deliveries plus losses). Ill. What arid Where to Submit (a) Submit an original and six (6) copies of this form to: U.S. Department of Energy Energy information Administration El 541 Mail Station: 8G-094 Forrestal Building Washington, D.C. Retain one copy of this report for your files. (b) Submit immediately upon publication, four (4) copies of the latest annual report to stockholders and any annual financial or statistical report regularly prepared and distributed to bondholders, security analyst, or industry association. (Do not include monthly and quarterly reports. If reports to stock-holders are not prepared, enter **NA" in column (d) on Page 4, the List of Schedules.) Mail these re-ports to: Chief Accountant Federal Energy Regulatory Commission 825 N. Capitol St., N.E. Room 601-RB Washington, D.C. 20426 (c) For the CPA certification, submit with the original submission, or within 30 days after the filing date for this form, a letter or report: (i) Attesting to the conformity, in all material aspects, of the below listed (schedules and) pages with the Commission's applicable Uniform Systems of Accounts (including applicable notes relating thereto and the Chief Accountant's published accounting releases), and (ii) Signed by independent certified public accountants or an independent licensed public accountant, certified or licensed by a regulatory authority of a State or other political subdivision of the LIS. (See 18 CFR 41.10 41.12 for specific qualifications.) Referena Schedules Pages Comparative Balance Sheet 110 113 Statement of income 114 117 ( Statement of Retained Earnings 118 119 Statement of Changes in Financial Position 120-121 Notes to Finar.cial Statements 122 123 When accompanying this form, insert the letter or report immediately following the cover sheet. FERC FORM NO.1 (REVISED 12-84) Page i J
GENERAL INFORMATION (Continued) n l lil. What and Where ta Submit (Continued) (c) (Continued) Use the following form for the letter or report unless unusual circumstances or conditions, explained in the letter or report, demand that it be varied. Insert parenthetical phrases only when exceptions are reported. In connection with our regular examination of the financial statement of for the year ended on which we have reported separately under date of we have also reviewed schedules of form 1 for the year filed with the Federal Energy Regulatory Commission, for conformity in all material respects with the re-quirements of the Federal Energy Regulatory Commission as set forth in its applicable Uniform System of Accounts and published accounting releases. Our review for this pur-pose included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. Based on our review, in our opinion the accompanying schedules identified in the preceding paragraph (except as noted below) conform in all material respects with the ac-counting requirements of the Federal Energy Regulatory Commission as set forth in its ap-plicable Uniform System of Accounts and published accounting releases. State in the letter or report which, if any, of the pages above do not conform to the Commission's requirements. Describe the discrepancies that exist. (d) Federal, State and Local Governments and other authorized users may obtain additional blank copies to meet their requirements free of charge from: U.S. Department of Energy National Energy Information Center Energy Information Administration Washington. O.C. 20585 (202) 252 880o IV. When to Submit: Submit this report form on or before April 30th of the year following the year covered by this report. GENER AL INSTRUCTIONS
- 1. Prepare this report in conformity with the Uniform System of Accounts (18CFR 101) (U.S. of A.).
Interpret all accounting words and phrases in accordance with the U.S. of A. II. Enter in whole numbers (dollars or MWH) only, except where otherwise noted. (Enter cents for averages and figures per unit where cents are important. The truncating of cents is allowed except on the four basic financial statements where rounding is required.) The amounts shown on all sup-porting pages must agree with the amounts entered on the statements that they support. When ap-plying thresholds to determine significance for reporting purposes, use for balance sheet accounts the balances at the end of the current reporting year, and use for statement of income accounts the current years amounts. Ill. Complete each question fully and accurately, even if it has been answered n a previous annual report. Enter the word "None" where it truly and completely states the fact. IV. For any page(s) that is not applicable to the respondent, either (a) Enter the words "Not Applicable" on the particular page(s), or (b) Omit the page(s) and enter "NA", "None", or "Not Applicable" in column (d) on the List of Schedules, pages 2, 3, and 4. ) V. Complete this report by means which result in a permanent record. Complete the original copy in permanent black ink or typewriter print, if practical. The copies, however, may be carbon copies or other similar means of reproduction provided the impressions are clear and readable. I ERC FOIOl NO. I titEVISED l 2-81i Page ii t L_
?
e C ENE. 'AL INST.,UCTIONS (Continued) VI. Enter the month, day, and year for all dates. Use customary abbreviations. The "Date of Report" at Re the top of each page is applicable only to resubmissions (see Vill. below). Vil. Indicate negative amounts (such as decreases) by enclosing the figures in parentheses ( ). Vill. When making revisions, resubmit only those pages that have been changed from the original sub-mission. Submit the same number of copies as required for filing the form. Include with the resub-mission the identification and Attestation page, page 1. Mail dated resubmissions to: Chief Accountant Federal Energy Regulatory Commission 825 North Canitol Street. N.E. Roorr 60128 Washu.gton, D.C. 20426 IX. Provide a supplemental statement further explaining accounts or pages as necessary. Attach the supplemental statement (8% by 11 inch size) to the page being supplemented. Provide the ap-propriate identification information, including the title (s) of the page and the page number sup-piemented. X. Do not make references to reports of previous years or to other reports in lieu of required entries, except as specifically authorized. i i XI. Wherever (schedule) pages refer to figures from a previous year, the figures reported must be { based upon those shown by the annual report of the previous year, or an appropriate explanation
; given as to why the different figures were used.
l Xll. Respondents may submit computer printed schedules (reduced to 8% by 11) instead of. the preprinted schedules if they are in substantially the same format. DEFINITIONS
- 11. Commission Authorization (Comm. Auth.) - The authorization of the Federal Energy Regulatory Commission, or any other Commission. Name the commission whose authorization was obtained and give date of the authorization.
I l 111. Respondent - The person, corporation, licensee, agency, authority, or other legal entity or in-I strumentality in whose behalf the report is made. EXCERPTS FRONI THE LAW (Federal Power Act,16 U.S.C. 791a-825r)
"Sec. 3. The words defined in this section shall have the following meanings for purposes of this Act, to wit:
...(3) ' corporation' means any corporation, joint-stock company, partnership, association, business trust, organized group .,f persons, whether incorporated or not, or a receiver or receivers, trustee or trustees of any of the foregoing, it shall not include ' municipalities' as hereinafter defined; (4) ' person' means an individual or a corporation; (5) ' licensee' means any person, State, or municipality licensed under the provisions of section 4 of this Act, and any assignee or successor in interest thereof; (7) ' municipality' means a city, county, irrigation district, drainage district, or other political subdivision or agency of a State competent under the laws thereof to carry on the business of developing, transmitting, utilizing, or distributing power;.. ."
(11) ' project' means a complete unit of improvement or development, consisting of a power house, all water conduits, all dams and appurtenant works and structures (including navigation structures) which are 3 a part of said unit, and all storage, diverting, a forebay reservoirs directly connected therewith, the primary %. line or lines transmitting power therefrom to the point of junction with the distribution system or with the interconnected primary transmission system, all miscellaneous structures used and useful in connection with said unit as any part thereof, and all water rights, rights-of way, ditches, dams, reservc!rs, lands, or interest in lands the use and occupancy of which are necessary or appropriate in the maintenance and operation of such unit; FERC FOIOl NO. I 1 REVISED 12 81i Page iii ,
EXCE L PTS FROgg THE LAWlf (Continued) ,
"Sec. 4. The Commisoson is hereby authorized gnd empowered- '
(a) To maka investigations and to c:llect tnd record dita concoming the utilization cf ths wit:r rs-sources of any region to be developed, the water-power industry and its relation to other industries and to g interstate or foreign commerce, and concerning the location, capacity, development costs, and relation to f markets of power sites,...to the extent the Commission may deem necessary or useful for the purposes of this Act."
"Sec. 304. (a) Every licensee and every public utility shall file with the Commission such annual and other periodic or special reports as the Commission may by rules and regulations or order prescribe as necessary or ap-propriate to assist the Commission in the proper administration of this Act. The Commission may prescribe the manner and form in which such reports shall be made, and require from such persons specific answers to all questions upon which the Commission may need information. The Commission may require that such reports shall include, among other things, full information as to assets and liabilities, capitalization, net investment, and reduction thereof, gross receipts, interest due and paid, depreciation, and other reserves, cost of project and other facilities, cost of maintenance and operation of the project and other facilities, cost of renewals and replacement of the project works and other facilities, depreciation, generation, transmission, distribution, delivery, use, and sale of electric energy. The Commission may require any such person to make adequate provi-sion for currently determining such costs and other facts. Such reports shall be made under oath unless the Commission otherwise specifies."
"Sec. 309. The Commission shall have power to perform any and all acts, and to prescribe, issue, make, amend, and rescind such orders, rules and regulations as it may find necessary or appropriate to carry out the provisions of this Act. Among other things, such rules and regulations may define accounting, technical, and trade terms used in this Act; and may prescribe the form or forms of all statements, declarations, applications, and reports to be filed with the Commission, the information which they shall contain, and the time within which they shall be filed...."
GENERAL PENALTIES "Sec. 315. (a) Any licensee or public utility which willfully fails, within the time prescribed by the Commis-sion, to comply with any order of the Commission, to file any report required under this Act or any rule or regula-tion of the Commission thereunder, to submit any information or document required by the Commission in the course of an investigation conducted under this Act,...shall forfeit to the United States an amount not ex-ceeding $1,000 to be fixed by the Commission after notice and opportunity for hearing...." l FERC FORNI NO. I (REVISED 12 81) Pageiv
.3 FERC FORM NO I:
ANNUAL REPORT OF MAJOR ELECTRIC UTILITIES, LICENSEES AND OTHERS IDENTIFICATION 01 Exact Legal Name of Respondent 02 Year of Report Vermont Electric Generation r, Transmission Cooperative, Inc. Dec. 31,198h 03 Previous Name and Date of Change (/f name changed during year) 04 Address of Principal Business Office at End of Year (Stree* City, State, Zip Code) School Street , Johnson, Verrnont 05656 05 Name of Contact Person 06 Title of Contact Person Jerry L. Bucholz Controller l 07 Address of Contact Person (Street, City, State, Zip Code) School Street, Johnson, Vermont 05656 08 Telephone of Contact Person, including 09 This Report is 10 Date of Report Area Code (Mo, Da, Yr) (1) DI An Original (2) O A Resubmission (802) 635-2331 4/15/85 ATTESTATION The undersigned officer certifies that he/she has exarr.ined the accompanying report; that to the best of his/her knowledge, snformation, and be-i hef, all statements of fact contained in the accompanying report are true and the accompanying report is a correct statement of the business and af f airs of the above named respondent in respect to each and every matter set forah therein during the period from and including January 1 to and including December 31 of the year of the report. 01 Name 03 Signature 04 Date Signed (Mo, Da, Yr) Jerry L. Bucholz g 02 Title [, Q u. Asst. Treasurer t, Controller ( 4/15/85 Titie is, u.s.c. t001, makes it a crime for any person knowingly and willingly to make to any Agency or Department of the United States any f alse, fictitious or fraudulent statements as to any matter within its turisdiction, i I i t I i t I l )( I FERC FORM NO.1 (REVISED 12-84) Page 1 L )
Nome of Respondent This Report is: Date if Report Year (f Report ' (Il QAn Orignal (Mo, Da. Yr) , VEGsT 121 OA Resubminion Dec. 31.198E LIST OF SCHEDULES (Electric Utility) Enter in column (d) the terms "none," "not applicable," or been reported for ce. iain pages. Omit pages where the responses "NA" as appropriate, where no information or amounts have are "none," "not a ,plicable." or "NA." i Reference Date Trec'56 Mule Page No. Revised "
- w lb) ICI fdl {
GENERAL CORPORATE INFORMATION AND FINANCIAL STATEMENTS General Information 101 Crntrol Over Respondent . 102 Corporations Controlled by Respondent 103 Officers . . . 104 Directors . . . 105 Security Holders and Voting Powers 106-107 Important Changes During the Year . . . 108-109 Comparative Bafance Sheet . . . . 110-113 12-34 Statement of income for the Year . . 114-117 12-84 Statement of Retained Earnings for the Year . . . . 118-119 Statement of Changes in Financial Position . 120-121 Notes to Financial Statements . . 122-123 BALANCE SHEET SUPPORTING SCHEDULES (Assets and Other Debts) Summary of Utility Plant and Accumulated Provisions for Depreciation, Amortization, and Depletion 200 12-84 Nuclear Fuel Materials . 201 12-84 Electric Plant in Service . . . 202-204 Electric Plant leased to Others . . 207 ElIctric Plant Held for Future Use 208 Construction Work in Progress - Electric 210 Construction Overheads - Electric 211 Gensral Description of Construction Overhead Procedure 212 Accumulated Provision for Depreciation of Elective Utility Plant 213 Nonutility Property . 215 investments in Subsidiary Companies 217 Extraordinary Property Losses . 220 12-84 l'nrecovered Plant and Regulatory Study Costs. 220 Mat: rial and Supplies . 218 Miscellaneous Deferred Debits . 223 Accumulated Deferred income Taxes (Account 190). 224 BALANCE SHEET SUPPORTING SCHFDULES (Liabilities and Other Credits! Capital Stock . 250 Capital Stock Subscribed. Capital Stock Liability for Conversion, Premium on Capital Stock, and installments Received on Capital Stock 251 Other Paid in Capi'al 252 D6 count on Caprial Stock 253 Capital Stock E = pense 253 Long Te,i %+ 250 25/ I:1.RC I:0101 NO. I IREVISED 12 84) Page 2
w- - - - , . -- - - - - - . .
;9- '
l 4 m gi Responalent Thes Report is: Dateof Report Yearaf Report (113An Oneinsi (Mo. De, Yrl VEG&T (2) OA Resubm.= ion Dec. 31. ie8!L LIST OF SCHEDULES (Electric Utility) (Continued) Title of Schedule '
, Romerks tal (bl Icl (d)
BALANCE SHEET SUPPORTING SCHEDULES (Liabilities and Other Credits) (Continued) Taxes Accrued, Prepaid and Charged D ring Year .................... 258-259 Reconciliation of Reported Net income with Taxable income for Federal income Taxes ...... ......... .... ............. ...... 261 Accumulated Deferred Investment Tax Credits ............ ......... 264 Other Deferred Credits ........ ............................. 266 Accumulated Deferred income Taxes-Accelerated Amortization Property . . . . 268-269 Accumulated Deferred income Taxes-Other Property ................. 270-271 Accumulated Deferred income Taxes-Other ...................... 272-273 INCOME ACCOUNT SUPPORTING SCHEDULES Electric Operating Revenues . . . . . .
.. ....... ... ...... 301 12-84 Sales of Electricity by Rate Schedules .. ...... ..... ........... 304 Sales for Resale .. .. .............. .......... .......... 310 -311 Electric Operation and Maintenance Expenses . . .................... 320 -323 12-84 Number of Electric Department Employees .......... ............. 323 Purchased Power . . ... .... . .... ...................... 326-327 Interchange Power ..... . . .... ... .. ................ 328 Transmission of Electricity for or by Others . ...... ............... 332 Miscellaneous General Expenses-Electric . . . . . . . . . . . . . . . .......... 333 Depreciation and Amortization of Electric Plant ........ ....... . 334-336 Particulars Concerning Certain income Deduction and interest Charges Accounts . . . .......... .......................... 337 COMMON SECTION Regulatory Commission Expenses . . . ... ..... . ............... 350-351 Research, Development and Demonstration Activities . . . . . . . . . . . . . . . . . . 352-353 Distribution of Salaries and Wages . . .......... .. .............. 354-355 Common Utility Plant and Expenses ..... .... .................
356 ELECTRIC PLANT STATISTICAL DATA Electric Energy Account .. .
........ .............,.. 401 Monthly Peaks and Output . .
........................... 401 Steam-Elactric Generating Plant Statistics (Large Plants) . . . . . . . . . ...... 402-403 Steam Electric Generating Plant Statistics (Large Plants) Average Annual Heat Rates and Correspo ding Net Kwh Output for Most Efficient Generating Units .. .. ........ ..... ... .. ........... 404 Hydroelectric Generating Plant Statistics (Large Plants) . . . . . . . . . . . ..... 406-407 Purnped Storage Generating Plant Statistics (Large Plants) ...... ... . . 408-409 Generating Plant Statistics (Small Plants). . . . . . . . . . . . . ......... . 410 Changes Made or Scheduled to be Made in Generating Plant Capacities . .
... 411 Steam Electru, Generating Plants . .. ..... .. ,......... 412-413 Hydroelectric Generating Plants . . . .
. ..... ... ..... . 414 -415 FERC FORM NO.1 (REVISED 12 841 Page 3
Nome of Respondent This Report is* D;.te of Report Year of Report (1) S An Ori;rd (Mo. De. Yr) (2) O A Resubmission Dec. 31.19M LIST OF SCHEDULES (Electric Utility) (Continued) Reference Date T Title of Schedule Page No. Revised Remarks f la) (b) Ich id) ELECTRIC PLANT STATISTICAL DATA (Continued) Pumped Storage Generating Plants . .... . . . ... . .... 416-418 Internal-Combustion Engine and Gas. Turbine Generating Plants . . . .. . 420-421 Transmission Line Statistics . .. . . . .. .. ... . . . . 422-423 Transmission Lines Added During Year . .. . . .. .... .. .. 424 Substations . . ... . . .. . .... ... . .... .. 425 Eltetric Distribution Meters and Line Transformers . . . . . . . 427 Environmental Protection Facilities ... . ... . . . .. 428 Environmental Protection Expenses . . .. . ... 429 Footnote Data . .. .. ... .... ... . . ... .. ... ... . 450 Stockholders' Reports . . ..... . ... ....... . . . . . .
)
FERC FOIOl NO.1 (REVISED 12-81i Page 4
-J
e j Nemoif Respondent This Report is: Date of Report Yeer af Report r (1) OAn Ori nal (Mo, De, Yr)
! VEGr,T Dec. 31,19b
- 12) DA Resubrnizion GENERAL INFORMATION
'f
- g
- 1. Provide name and title of officer having custody of the general corporate books of account and address of office where the general corporate books are kept, and address of office where any other corporate books of account are kept, if different from that where the general corporate books are kept.
Jerry L. Bucholz Controller School Street, Johnson, Vermont 05656
- 2. Provide the name of the State under the laws of which respondent is incorporated, and date of incorporation, if incorporated under a special law, give reference to such law. If not incorporated, state that fact and give the type of organization and the date
, organized.
Vermont - 1979 l 3. If at any time during the year the property of respondent was held by a receiver or trustee, give (a) name of receiver or trustee, (b) date such receiver or trustee took possession, (c) the authority by which the receivership or trusteeship was created, and (d) date when possession by receiver or trustee ceased. i i Not Applicable
- 4. State the classes of utility and other services furnished by respondent during the year in each State in which the respondent
- operated.
Wholesale electric sales - Vermont ( 5. Have you engaged as the principal accoantant to audit your financial statements an accountant who is not the principal ac-countant for your previous year's certified financial statements? (1) O YES ... Enter the date when such independent accountant was initially engaged: (2) [2 NO FERC FOR31 NO.1 (REVISED 12-81 ) Page 101 ; I,
Nome of Respondent This Report is: Date a f Report Yeeraf Report * (1) OAn Ori; net (Mo, De, Yr) , VEG&T (2) CIA Reission Dec. 31, is 84 CONTROL OVER RESPONDENT
- 1. If any corporation, business trust, or similar organization or trustee (s), name of beneficiary or beneficiaries for whom trust combination of such organizations jointly held control over the was maintained, and purpose of the trust.
respondent at end of year, state name of controlling corporation 2. If the above required information is available from the SEC or organization, manner in which control was held, and extent of 10-K Report Form filing, a specific reference to the report form c:ntrol, if control was in a holding company organization, show (i.e. year and company title) may be listed provided the fiscal the chain of ownership or control to the main parent company or years for both the 10-K report and this report are compatible. organization. If control was heki by a trustee (s), state name of Varmont Electric Cooperative, Inc., is the only Class A Member of the Generation and Transmission Cooperative at December 31, 1984. As the only Class A Member, it elected five members to the Board of Trustees. Thsre are two Class B Members; New Hampshire Electric Cooperative, Inc., and Fox Island Electric Cooperative, Inc. Class B Members as a class can elect one member to the Board of Trustees. Thsre are six Class C Members; Connecticut Light and Power Company, Western M ssachusetts Electric Company, Central Vermont Public Service Corporation, the Village of Johnson, the Village of Hyde Park and North Attleborough Electric D:partment. Class C Members as a class can elect one member to the Board of Trustees. 1 I ERC FOlul NO.1 (REVISED 12 81) Page 102
o 4 Nerne of Respondent This Report is: Q te of Report Year of Report (1) QAn Original (Mo, De, Yr) VEGE,T (2) O A Resubmission Dec.31,19 h CORPORATIONS CONTROLLED BY RESPONDENT
- 1. Report below the names of all corporations, businest trusts, 3. If control was held jointly with one or more other interests, and similar organizations, controlled directly or indirectly by state the fact in a footnote and name the other interests.
respondent at any time during the year. If control ceased prior to 4. If the above required information is available from the SEC end of year, give particulars (details) in a footnote. 10-K Report Form filing, a specific reference to the report form
- 2. If control was by other means than a direct holding of voting (i.e. year and company title) may be listed in column (a) provided rights, state in a footnote the manner in which control was held, the fiscal years for both the 10-K report and this report are com-naming any intermediaries involved. patible.
DEFINITIONS
- 1. See the Uniform System of Accounts for a definition of control or direct action without the consent of the other, as control. where the voting control is equally divided between two holders,
- 2. Direct control is that which is exercised without interposi- or each party holds a veto power over the other Joint control tion of an intermediary. may exist by mutual agreement or understanding between two or
- 3. Indirect control is that which is exercised by the interposi- more parties who together have control within the meaning of the tion of an intermediary which exercises direct control. definition of control in the Uniform System of Accounts,
- 4. Joint control is that in which neither interest can effectively regardless of the relative voting rights of each party.
Percent Voting Footnote Name of Company Controlled Kind of Business Stock Owned Ref. fel (b) (cl (d) INTENTIONALLY BLANK Page 103 FERC FORM NO 1} REVISED 12-81) 1
Nome of Respondent This Report is: Date ef Report Yeer(f Report , (1) GAn Original (Mo, De, Yr) , f VEG&T (2) OA Resubmission Dec.31,19 h OFFICERS
- 1. Report below the name, title and salary for each executive any position, show name and total remuneration of the previous officer whose salary is $50,000 or more. An " executive officer" of incumbent, and date the change in incumbency was made.
c respondent includes its president, secretary, treasurer, and vice 3. Utilities which are required to file the same data with the president in charge of a principal business unit, division or func- Securities and Exchange Commission, may substitute a copy of tion (such as sales, administration or finance), and any other per- item 4 of Regulation S-K (identified as this page). The substituted son who performs similar policymaking functions. page(s) should be the same size as this page.
- 2. If a change was made during the year in the incumbent of
"' Sa Title Name of Officer fa) (bl ic) 1 President J. Douglas Webb 2
3 1st Vice-President Clyde Jones 4 5 2nd Vice-President Robert Northrop 6 7 Treasurer Marshall Washer 8 9 *Vice-President & Executive Mgr. William J. Gallagher 10 11
- Asst. Treasurer & Controller Jerry L. Bucholz 12 13
- Asst. Secretary Nora H. Winckler 14 15 Secretary Laura L. D. Howe 16 17 *Not a Member of the Board of Trustees, but an operating officer of :he GsT.
18 19 No of ficer or employee earned a oalary of $50,000 or more from the Cooperative 20 during 1984. 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 ) 40 41 42 43 44 FERC FORM NO.1 (REVISED 12 81) Page 104
9 , Name of Respondent This Report is: Datoof Report Year of Report (1) Q An Original (Mo, De, Yr) VEGsT (2) O A Resubmission a Dec. 31,116.b._ DIRECTORS
- 1. Report below the information called for concerning each 2. Designate members of the Executive Committee by an director of the respondent who held office at any time during the asterisk and the Chairman of the Executive Committee by a dou-year. Include in column (a) abbreviated titles of the directors who ble asterisk.
are officers of the respondent. Name (and Title) of Director Principal Business Address (n) (b)
*J. Douglas Webb, President Fairfax, Vermont 05454
*Clyde W. Jones, 1st Vice-President East Dover, Vermont 05341
- Robert Northrop' RD#1, Box 540, Cambridge, VT 05444
- Laura L. D. Howe, Clerk 49 Fairview, Brattleboro, VT 05301
- Marshall Washer, Treasuser R.D.#2, Johnson, Vermont 05656 Arthur Wadleigh R.D.#3, Box 55, Plymouth, NH 03264 Walter T. Schulthels c/o Northeast Utilities P.O. Box 270 Hartford, Connecticut 06101 FERC FOR.\1 NO.1 (REVISED 12 81) Page 105
i 3 Name of Respondent This Report is: Date af Report Year of Report 35 (1) @ An bnenal (Mo, De, Yr) n VEG&T m OA Remon Dec.31.i d b SECURITY HOLDERS AND VOTING POWERS x 4 1. Give the names and addresses of the 10 security close of the year. Arrange the names of the security 4. Furnish particulars (details) concerning any op-2 holders of the respondent who, at the date of the latest holders in the order of voting power, commencing with tions, warrants, or rights outstanding at the end of the
.C closing of the stock book or compilation of list of the highest. Show in column (a) the titles of officers and year for others to purchase securities of the respondent - stockholders of the respondent, prior to the end of the directors included in such litt of 10 security holders, or any securities or other assets owned by the respon-5 year, had the highest voting powers in the respondent, 2. If any security other than stock carries voting dent, including prices, expiration dates, and other r;" and state the number of votes which each would have rights, explain in a supplemental statement the cir- material information relating to exercise of the options, J had the right to cast on that date if a meeting were then cumstances whereby such security became vested with warrants, or rights. Specify the amount of such $ in order. If any such holder held in trust, give in a foot- voting rights and give other important particulars securities or assets so entitled to be purchased by any C note the known particulars of the trust (whether voting (details) concerning the voting rights of such security. officer, director, associated company, or any of the ten trust, etc.), duration of trust. and principal holders of State whether voting rights are actual or contingent; if largest security holders. This instruction is inappiscable de benefsciary interests in the trust. If the stock book was contin <)ent, describe the contingency. to convertible securities or to any securities substantially
_~ not closed or a list of stockholders was not compiled 3. If any class or issue of security has any special all of which are outstanding in the hands of the general within one year prior to the end of the year, or if since privileges in the election of directors, trustees or public where the options, warrants, or rights were the previous compilation of a list of stockholders, some managers, or in the determination of corporate action issued on a prorata basis. other class of security has become vested with voting by any method, explain briefly in a footnote, rights, then show such 10 security holders as of the
- t. G ve date of the 44 test closang of the stock book preor to 2. state the total number of votes cast at the latest general 3. Give the date and place of such meetsng:
N end of year, and state the purpose of such closing: meeteng pnor to the end of year for election of directors of the
$ respondent and number of such votes cast by proxy - Total:
b By prony: VOTING SECURITIES umber of votes as of (dateh Lane Name (Title) and Address of Security Holder No. Total Common Preferred Oh Votes Stock Stock (a) (b) (c) id) fel 4 TOTAL votes of all voting securities 5 TOTAL number of security holders 6 TOTAL votes of security holders listed below 7 8 This is a rural electric generation and transmission 9 corporation (cooperative). 10 11 Class A members have 5 votes (for all members within this class). 12 Class B members have 1 vote (for all members within this class). 13 Class C members have 1 vote (for all members within this class). 14 16 16 l 17 , 18
m femmeof ftmapondent [ Thrs Report is: Date of Report Yser of Report N (1)O An Oripnel (Mo, De, Yrl
- O VEG&T r21 OA Resubm ssion Dec. 31.11R4 C SECURITY HOLDERS AND VOTING POWERS (Continued) 35 h Name (Tittel and Address of Secunty Holder Total Common Preferred 2 h Votes Stock Stock
,O tal (bl ick idl fel
- is s is 20 m 21 .
22 g* 23 24 Y 25 3
~
26 27 28 29 30 31 1 32
- 33 INTENTIONALLY BLANK 34 5 35 3s
- =
4o 41 l 42 43 44 45 46 i 47 48 49 50 51 52 1 53 i 54 j 55 i i __ _ ._______a
r This Report is: 0;te af Report Year cf Report . Name tf Respondent (t) @An on nel (Mo, De, Yr) , VEG&T m O A Resubminion Dec. 31,198k. IMPORTANT CHANGES DURING THE YEAR Give particulars (details) conceming the matters indicated available to it from purchases, development, purchase contract or below. Make the statements explicit and precise, and nun.ber otherwise, giving location and approximate total gas volumes
)
them in accordance with the inquiries. Each inquiry should be avi'able, period of contracts, and other parties to any such ar-answered. Enter "none," "not applicable," or "NA" where ap- rar oements etc. plicable. If information which answers an inquiry is given g ,,, ,, g , y ,, , , , , , , ,,,,,,,,.u., l elsewhere in the report, make a reference to the schedule in 3 i.ef ,.ies se assum e :on s* i>eoo i*iei e ' which it appears. 3 d 8 * 'a * " s act as ing isswance o' saor t *em osot apee
- 1. Changes in and important additions to franchise rights: an s e =mer ai o no a a
, ,, , a ',u Describe the actual consideration given therefor and state from e3,,;,,;,, ,,,.,,,,i,n, ,, ,,,,agei.,,, ,,e ,n, whom the franchise rights were acquired. If acquired without the aar aa ? o+ ooligation or 3warsa'ee.
payment of consideration, state that fact. , Gunges in articles of incorporation or amenomes is to
- 2. Acquisition of ownership in other companies by reorganiza- rh enter: Explain the nature and purpose of such change. Or tion, merger, or consolidation with other companies: Give names amendments, of companies involved, particulars concerning tha transactions, 8. State the estimated annual effect and nature of any impor.
name of the Commission authorizing the transaction, and tant wage scale changes during the year, reference to Commission authorization. 9. State briefly the status of any materially important legal pro.
- 3. Purchase or sale of an operating unit or system: Give a brief ceedings pending at the end of the year, and the results of any description of the property, and of the transactions relating such proceedings culminated during the year.
thereto, and reference to Commission authorization, if any was 10. Describe briefly any materially important transactions of the required. Give date journal entries called for by the Uniform respondent not disclosed elsewhere in this report in which an of. System of Accounts were submitted to the Commission. ficer, director, security holder reported on page 106, voting
- 4. Important leaseholds (other than leaseholds for natural gas trustee, associated company or known associate of any of these lands) that have been acquired or given, assigned or surrendered: persons was a party or in which any such person had a material Give effective dates, lengths of terms, names of parties, rents, interest.
and other conditions. State name of Commission authorizing 11. (Reserved.) lease and give reference to such authorization.
- 5. Important extension or reduction of transmission or distribution system: State territory added or relinquished and 12. If the important changes during the year relating to the date operations began or ceased and give reference to Commis- respondent company appearing in the annual report to sion authorization, if any was required. State also the approx. stockholders are applicable in every respect and furnish the data imate number of customers added or lost and approximate annual required by instructions 1 to 11 above, such notes may be at.
revenues of each class of service. Each natural gas company tached to this page, must also state major new continuing sources of gas made
- 1. Not Applicable
- 2. None 3 None
- 4. None 5 None
- 6. None 7 None
- 8. None 9 None
- 10. In January 1984, the Vermont Electric Generation & Transmission Cooperative, Inc.
("VEG&T") purchased 0.41259% Joint ownership in the Scabrook Nuclear generation project, 0.20% of the Hillstone Nuclear Unit No. 3 Project and 0.20% of the Pilgrim Nuclear Unit No. 2 Project with associated transmission and nuclear fuel i from the Vermont Electric Cooperative, Inc. ("VEC") for a total of $19,424,203.40. The Cooperative assumed $13,970,173 32 in REA insured long-term debt, assumed
$3,977,518.42 in REA Guaranteed long-term debt and $1,476,511.66 in cash. In addition, the VEG&T assumed long-term loan commitments for construction costs of the projects in the amount of $1,/,?6,000 REA insured loan and $5,919,000 remaining l
on an REA guaranteed loan.
- 11. None i
l l l'ERC i 0101 NO. I 1REVISEI) I 2 83p Page 108
Name of Respondent This Report is: Dateaf Report Yeer cf Report (1) % Ori;nel (Mo, De, Yr) VEG&T ! (21 O A R e sion Dec. 31,198.b. IMPORTANT CHANGES DURING THE YEAR (Continued) INTENTIONALLY BLANK t FERC FORM NO.1 (REVISED 12-81) Page 109
r TNs Report is: Data of Rrport Year of Arport
- Name cf Respondent (1) X An Original (Mo. Da, Yr)
- VEG&T (2) C A Resubmission Dec. 31.19 814_
COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBITSI Ref. Balance at Balance at Title of Account Page No. Beginning of Year End of Year Lene fal (b) (c) id) No. 1 UTILITY PLANT 2 Utility Plant (101-106,114) 200 32.640 32.640 3 Construction Work in Progress (107) 200 8.929.615 39.059.369 4 TOTAL Utility Plant (Enter Total of lines 2 and 3) 8.962.255 39.092.009 4.448 (Less) Accum. Prov. for Depr. Amort. Dept. (108,111,115) 200 2.900 5 6 Net Utility Plant / Enter Total of line 4 less 51 - 8.999.199 19.n87.n61 7 Nuclear Fuel (120.1-120.4,120.C) 201 121.499 1.162.819 201 8 (Less) Accum. Prov. for Amort. of Nucl. Fuel Assemblies (120.5) 9 Net Nuclear Fuel (Enter Total of /ine 7 /ess 81 1?) 499 1.16? R19 Net Utility Plant (Enter Total of lines 6 and 91 - q.ngo 8qh kn.74q.RRn 10 11 Utility Plant Adjustments (116) 122 12 Gas Stored Underground-Noncurrent (117) 214 13 OTHER PROPERTY AND INVESTMENTS 14 Nonutility Property (121) 215 15 (Less) Accum. Prov. for Depr. and Amort. (122) 215 16 Investments in Associated Companies (123) 21 6 1,010 18.177 17 investment in Subsidiary Companies (123.1) 217 18.278 18 (For Cost of Account 123.1, See Footnote Page 217, fine 23) - 19 Other investments (124) . Special Funds (125-128) 20 21 TOTAL Other Property and investments (Total of lines 14 thru 20) - 1.n10 36.455 22 CURRENT AND ACCRUED ASSETS 1R ?q? 23 Cash (131) 73-3nA 24 Special Deposits (132-134) - 25 Working Funds (135) - 26 Temporary Cash investments (136) 216 377 457 h 4qh Notes Receivable (141) 27 28 Customer Accounts Receivable (142) - 91h RA9 ?7A n57 Other Accounts Receivable (143) 29 30 (Less) Accum. Prov. for Uncollectible Acct.-Credit (144) - 31 Notes Receivable from Associated Companies (145) - 32 Accounts Receivable from Assoc. Companies (146) - 33 Fuel Stock (151) - 34 Fuel Stock Expense Undistributed (152) - Residuals (Elec) and Extracted Products (Gas) (153) 35 36 Plant Material and Operating Supplies (154) - 37 Merchandise (155) - 38 Other Material and Supplies (156) - 39 Nuclear Materials Held for Sale (157) 201 s 40 Stores Expenses Undistributed (163) - 41 Gas Stored Underground - Current (164.1) 214 42 Liquefied Netural Gas Stored (164.2) 214 43 Liquefied Natural Gas Held for Processing (164.3) 214 44 Prepayments (165) 220 2.103 7.887 45 Advances for Gas tixplor. Devel, and Prod. (166) 219 46 Other Advances for Gas (167) 219
)
47 Interest and Dmdends Receivable (171) - Rents Receivable (172) 48 49 Accrued Utility Revenues (173) - 50 Miscellaneous Carrent and Accrued Assets (174) 51 TOTAL Current and Accrued Assets / Enter Total of lines 23 thru 50) 617.715 306.710 FERC FORM NO.1 (REVISED 12-84) Page 110
Name cf Respondent This R; port is: D;t) of Report Yur cf R: port i11@ An Ongird (Mo, Da, Yr) VEGr,T (2)O A Resubmission lDec.31,19 8k COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBITS) (Continued) Line Title of Account Page No. Beginning of Year End of Year No. (a) (b) (c) (d) 52 DEFERRED DEBITS f 53 Unamortized Debt Expense (181) - 17.847 to qqn 54 Extreordinary Property Losses (182.1) 220 -- 1.021.171 ES Unrecovered Plant and Regulatory Study Costs (182.2) 220 56 Prelim. Survey and Investigation Charges (Electric) (183) - 93.102 49.875 57 Prelim. Sur. and invest. Charges (Gas) (183.1,183.2) - 58 Clearing Accounts (184) - 59 Temporary Facilities (185) - 60 Miscellaneous Deferred Debits (186) 223 110.977 207.721 61 Def. Losses from Disposition of Utility Plt. (187) - 62 Research, Devel, and Demonstration Expend. (188) 352-353 63 Unamortized Loss on Reacquired Debt (189) - 64 Accumulated Deferred Income Taxes (190) 224 65 Unrecovered Purchased Gas Costs (191) - 66 Unrecovered incremental Gas Costs (192.1) - 67 Unrecovered incremental Surcharges (192.2) - 68 TOTAL Deferred Debits (Enter Totaloflines 53 thru 67) 421.426 1.120.A1q 69 TOTAL Assets and other Debits (Enter Totaloflines 10,11,12,21, 51, and 68) 10,121,q25 41.911_q84
+
l l t Page 111 FERC FOR31 NO.1 (R8~V15ED i2-5I)
This R port 1s: D;te cf Rep".rt Year of Report , Name cf Respondent (1) $ An Original (Mo D3, Yr)
- VEGST 12) O A Risubmission Osc. 31,1980 COMPARATIVE BALANCE SHEET (LIABILITIES AND OTHER CREDITS)
Omit Cents Ref. Line Title of Account Page No. Balance at Balance at No. Beginning of Year End of Year (a) (b) (c) (d) 1 PROPRIETARY CAPITAL 250 kg 40 2 Membershios 3 250 4 251
'S 251 6 251 7 Other Margins and Equity _25_2 6.005 10.188 8 Installments Received on Capital Stock (212) ,J1 9 (Less) Discount en Capital Stock (213) -
253 10 (Less) Capital Stock Expense (214) 253 11 Retained Earnings (215,215.1,216) 118-119 12 Unappropriated Undistributed Subsidiary Earnings (216.1) 118 119 13 .(Less) Reacquired Capital Stock (217) 250 14 TOTAL Proprietary Capital (Enter Totalof lines 2 thru 131 - (, 3n,??R n5n 15 LONG-TERM DEBT 16 Bonds (221) 256 17 (Less) Reacquired Bonds (222) 256 18 Advances from Associated Companies (223) 256 19 Other Long-Term Debt (224) 256 5.028.199 14.881.454 20 Unamortized Premium on Long-Term Debt (225) - 21 (Less) Unamortized Discount on Long-Term Debt Dr. (226) - 22 TOTAL Long-Term Debt (Enter Totaloflines 16 thru 21) - G.028;199 14.881 h94 23 OTHER NONCURRENT LI ABILITIES 24 Obligations Under Capital Leases - Noncurrent (227) - 25 Accumulated Provision for Property Insurance (228.1) - 26 Accumulated Provision for injuries and Damages (228.2) - 27 Accumulated Provision for Pensions and Benefits (228.3) - 28 Accumulated Miscellaneous Operating Provisions (228.4) - 29 Accumulated Provision for Rate Refunds (229) - 30 TOTAL Other Noncurrent Liabilities (Enter Totaloflines 24 thru 29) 31 CURRENT AND ACCRUED LIABILITIES 32 Notes Payable (231) - 1.771.299 4.671.641 33 Accounts Payable (232) - 1.105.680 1.988.697 34 Notes Payable to Associated Companies (233) - 35 Accounts Payable to Associated Companies (234) - 20.341 318.000 36 Customer Deposits (235) - 37 Taxes Accrued (236) 258 259 5.068 2 38 Interest Accrued (237) -- 182.688 2,1.960 39 Dividends Declared (238) - 40 Matured Long-Term Debt (239) - 41 Matured interest (240) - 42 Tax Collections Payable (241) - 43 Miscellaneous Current and Accrued Liabilities (242) - 44 Obligations Under Capital Leases-Current (243) - 45 TOTAL Current and Accrued Liabilities (Enter Totaloflines32 thru 441 5.087.076 7.000.302 i FERC FORM NO.1 (REVISED 12-84) Page 112
This Report 15: Dits of Report Yetr of Report ~7 Name el Respondent (1) @ An Original (Mo. Dr. Yr) VEGt,T (2) O A Resubmission Dec.31.190k COMPARATIVE BALANCE SHEET (LI ABILITIES AND CREDITS) (CONTINUED) Om t Cents t.ine Title of Account g ,, Balance Balance at No. P e No. Beginning of Year End of Year (a) (b) k) id) I 46 DEFERRED CREDITS 47 Customer Advances for Construction (252) 48 Accumulated Deferred investment Tax Credits (255) , 264 _ 49 Deferred Gains from Disposition of Utility Plant (256) 50 Other Deferred Credits (253) 266 51 Unamortized Gain on Reacquired Debt (257) 257 _ 52 Accumulated Deferred Income Taxes (281283) 268-273 53 TOTAL Deferred Credits (Enter Total oflines 47 thru 52) 1 54 l I 55 56 57 58 l 59
! 60 61
- , 62
, 63 64 65 66 67 68 TOTAL Liabilities and Other Credits (Enter Totaloflines 14,22,30, 69 45 and 53) 41,913,984 3
4 l* l lI i 1 FERC FORM NO.1 (REVISED 12-84) Page 113 i
~
Name tf Respondent This Report is: Date cf Report Ysar cf Report (Mo. D), Yr) * (1) GAn Original VEGE,T (210 A Resubmissicn Dec.31,198k , STATEMENT OF INCOME FOR THE YEAR
- 1. Report amounts for accounts 412 and 413, Revenue and ceedings uvhere a contingency exists such that refunds of a }
Expenses from utility Pfant Leased to Others, in another utility material amount may need to be made to the utility's / column (i, k, m, o) in a similar manner to a utility department. customers or which may result in a material refund to the util-
' Spread the amount (s) over lines 01 thru 20 as appropriate. In- ity with respect to power or gas purchases. State for each year clude these amounts in columns (c) and (d) totals. affected the gross revenues or costs to which the contingency
- 2. Report amounts in account 414, Other Utility Operating relates and the tax effects together with an explanation of the Income, in the same manner as accounts 412 and 413 above, major factors which affect the rights of the utility to retain
- 3. Report data for lines 7,9, and 10 for Natural Gas com- such revenues or recover amounts paid with respect to power panies using accounts 404.1, 404.2, 404.3, 407.1, and 407.2. and gas purchases.
- 4. Use page 122 for important notes regarding the state- 6. Give concise explanations concerning significant ment of income or any account thereof, amounts of any refunds made or received during the year
- 5. Give concise explanations concerning unsettled rate pro-( Ref.)
Line Account Page No. Current Year Previous Year No. (a) (b) (c) (d) 1 UTILITY OPERATING INCOME 2 Operating Revenues (400) 6.701.219 5,657,598 3 Operating Expenses 4 Operation Expenses (401) 6.547.015 5.621.828 5 Maintenance Expenses (402) 6 Depreciation Expense (403) 7 Amort. & Depl. of Utility Plant (404-405) 8 Amort.of Utility Plant Acq. Adj. (406) 9 Amort. of Property Losses, Unrecovered Plent and Regulatory Study Costs (407) 15.666 10 Amort. of Conversion Expenses (407) 11 Taxes Other Than income Taxes (408.1) 258 9 14 12 Income Taxes - Federal (409.1) 258 13 - Other (409.1) 258 14 Provision for Deferred inc. Taxes (410.1) 224,268 273 15 ( Less) Provision f or Defe rred i ncome Ta xes-Cr. (411.1 ) 224,268-273 16 investment Tax Credit Adj. - Net (411.4) 264 17 (Less) Gains from Disp. of Utility Plant (411.6) 18 Losses from Disp. of Utility Plant (411.7) 19 TOTAL Utility Operating Expenses (Enter Total oflines 4 thru 18) 6.582.640 5.621.842 20 Net Utility Operating income (Enter Totalof line 2 less 19) (Carry forward to page 117,
/ine 211 118.429 15.756 FERC FORM NO.1 (REVISED 12-84) Page 114
Narne of Rispondsnt This Report is: Date of Report Year of Report (1) O An Ong.nal (Mo, Da, Yr) VEGsT f 2) O A Resubmission Dec. 31,19_b STATEMENT OF INCOME FOR THE YEAR (Continued) resulting fror:1 settlement of any rate proceeding affecting allocations and apportionments from those used in the pre-revenues received or costs incurred for power or gas pur- ceding year. Also give the approximate dollar effect of such chases, and a summary of the adjustments made to balance changes. sheet, income, and expense accounts. 9. Explain in a footnote if the previous year's figures
- 7. If any notes appearing in the report to stockholders ,are different from that reported in prior reports.
are applicable to this Statement of income, such notes may 10. If the columns are insufficient for reporting addi-be attached at page 122. tional utility departments, supply the appropriate account
- 8. Enter on page 122 a concise explanation of only titles, lines 1 to 19, and report the information in the blank those changes in accounting methods made during the year space on page 122 or in a supplemental statement.
which had an effect on net income, including the basis of ELECTRIC UTILITY GAS UTILITY OTHER UTILITY Line Current year Previous Year Current year Previous Year Current year Previous Year No. (el (f) (gl thi (il til 1 6.701.21_4 5.647_qqR 2 3 6.547.01G G 6?1 R9R 4 5 6 7 8 35.666 9 10 9 14 11 12 13 14 15 16 17 18 19 6.582.640 5.621.842 20 118,529 35,756 l
)
FERC FORM NO. I (REVISED 12-84) Page 115 ;
0 I Date of Rwt Year of Report Nome of Respondent TNs Report is: (Mo, Da, Yr) (1)QAn Original Dec. 31,198.la. VECT,T (2) O A Resubmission STATEMENT OF INCOME FOR THE YEAR (Continued) OTHER UTIUTY OTHER UTIUTY OTHER UTILITY Line Current Year Previous Year Previous Year Current Year Previous Year Na Current Year (of (p) (1) (m) (n) ! (kI 1 l 2 3 4 5 6 7 8 9 10 A-11 f 1 12 13 J ! 14 # 15 M 16 8 17 f 18 19 20
)~
Page 116 FFRC FOR\1 NO.1 (REVISED.12-81)
1 1 Name af Respondent This Report is: D;t'> cf Report Year cf Report (1) O An Original (Mo, Da, Yr) V EGr,T I21 O A Resubmission Dec. 31,19M STATEMENT OF INCOME FOR THE YEAR (Continued) Ref. TOTAL l Line Account Page ] No. No. Current Year Previous , Year ) tal (b) (c) (d) 21 Net Utihty Operating income (Carried forward from page 114) - 118 . 52 C) 35.756
~
22 Other income and Deductions 23 Other income 24 Nonutihty Operating income 25 Revenes From Merchandising. Jobbing and Contract Work (415) 26 (Less) Costs and Exp. of Merchar'+ sing. Job. & or tract Work (416) 27 Reve~f-s From Nonutihty Op-a* ons (417s 28 (Less Expenses of Nonutility Operations (417.1) 29 Nonoperating Rental income (418) I 30 Equity in Earnings of Subsidiary Companies (418.1) - 31 Interest and Dividend income (419) 5.637 2.457 32 Allowance for Other Funds Used During Construction (419.1) - 33 Miscellaneous Nonoperating income (421) 34 Patronaoe Capital - NRUCFC (424) 18,278 35 TOTAL Other income (Enter Total of lines 25 thru 34) - 23,915 2,457 36 Other income Deductions 37 Loss on Disposition of Property (421.2) 38 Miscellaneous Amortization (425) 337 39 Miscellaneous Income Deductions (426.1-426.5) 337 50 10.435 40 TOTAL Other income Deductions (Total of //nes 37 thru 39) - 50 10,435 41 Taxes Applic. to Other income and Deductions 42 Taxes Other Than income Taxes (408.2) 258 43 Income Taxes-Federal (409.2) 258 44 Income Taxes-Other (409.2) 258 45 P ev.s.on f or Deferred inc Taxes (410 2) 224.268-273 46 0 * .5) Provision 'or Deferred income T= =es-Cr (411.2) 224.268-273 47 h.gtrnen' ' v C ed
- Adj -Net (41151 48 s,si histment Tax Credits (420) 49 TUlAL 1 axes on Utnec enc ann ved. (Enter Totalof 42 thru 48) -
50 Net Other income and Deductions (Enter Total of lines 35,40,49) - 23,865 (7,978) 51 Interest Charges 52 Interest on Long-Term Debt (427) - 2.256.420 108,917 53 Amort. of Debt Disc. and Expense (428) 54 An o. t iat on of Loss on Reacau. ed Debt (4281) 55 (Le .si Amort. of Premium on Debt Credit (429) 56 (Le;si Amortization ut Gain on Reacquaed Debt Credit (429.1)
- 5. In's eu on Dee'Io~ msoc Lompan es e s son 337 58 Oibe. Inteier L L - U: 337 77,652 25,778 W (L. s Allowh t tur Borrowed Funds Used Durir@ Construction-Cr (432)
~
(2.215,856) (108,917) 60 r9et inte est Charges (ente ' ora of a nes 52 rhau 591 - 118.216 25.778 61 income Before Extraordinary items (Enter Totai of i,nes 21,50 and 60) - 24,178 2,000 62 Extraordinary items 63 E *----" m . % eme (4311 ( 64 65 11 L n' v"i "a y Deductu 1 , r, ins ensievouinacy items Ibnte totar of line 63 /ess line 64) - 66 income Taxes-Federal and Other (409.3) 258 67 Extraordinary items After Taxes (Enter Total of line 65 /ess line 66) - 68 Net income (Enter Total of lines 61 and 67) FERC FORN1 NO.1 (REVISED 12-81) Page 117
This Report Is: Date af Report Year of Report Name tf Respondent * (M 2, De, Yrl (1) @ An Orifnel Dec.31,193h VEGET (21 O A Resubmission STATEMENT OF RETAINED EARNINGS FOR THE YEAR
- 1. Report all changes in appropriated retained earnings, unap- 5. Show dividends for each class and series of capital stock.
propriated retained eamings, and unappropriated undistributed 6. Show separately the state and federal income tax effect of subsidiary earnings for the year. items shown for Account 439, Adjustments to RetainedEamings.
- 2. Each credit and debit during the year should be identified as 7. Explain in a footnote the basis for determining the amount to the retained earnings account in which recorded (Accounts reserved or appropriated. If such reservation or appropriation is to 433, 436-439 inclusive). Show the contra primary account af- be recurrent, state the number and annual amounts to be re-fected in column (b). served or appropriated as well as the totals eventually to be ac-
- 3. State the purpose and amount for each reservation or cumulated.
appropriation of retained eamings. 8. If any notes appearing in the report to stockholders are ap-I 4. List first Account 439, Adjustments to Retained Eamings, plicable to this statement, attach them at page 122. { reflecting adjustments to the opening balance of retained earn-I bgs. Follow by credit, then debit items, in that order. Contra Primary Line Item Account Amount No. AfN:ted l tal (b) ici l UNAPPROPRIATED RETAINED EARNINGS (Account 216) l 1 Balance - Beginning of Year 6.000 2 Changes (Identify by prescribed retained eamings accounts) 3 Adjustments to Retained Earnings (Account 439) 4 Credit: 5 Credit: ! 6 Credit: l 7 Credit: 8 Credit: 9 TOTAL Credits to Retained Earnings ( Account 439) (Enter Tors / oflines 4 thru 81 10 Debit: 11 Debit: . 12 Debit: l 13 Debit: I 14 Debit: 15 TOTAL Debits to Retained Earnings ( Account 439) (Enter Totaloflines to thru 141 16 Balance transferred from income (Act:ount 433 fees Account 418.1) 74;17R 17 (Les 4 %greations of Retained Eare ngs (Account 436) 18 19 20 I 21 22 TOTAL Appropriations of Retained Earmngs ( Account 436) (Enter Totaloflines 18 thru 21) 23 Dividends Declared - Preferred Stock (Account 437) 24 25 26 27 28 29 TOTAL Dividends Declared-Preferred Stock (Account 437) (Enter Totaloflines 24 thru 28) l l 30 Dividends Declared - Common Stock (Account 438) l 31 32 33 - 34 35 36 TOTAL Dividends Declared-Common Stock ( Account 438) (Enter Total oflines J f thru 35) 37 Transfers from Acet. 216.1. Unappropriated Undistributed Subsidiarv Earninos 38 Balance - End of Year (Enter Totaloflines 01. 09,15,16,22,29,36 and 37) 30.178 FERC FORM NO.1 (REVISED 12-81) Page 118
Name of Respondent This Report is: D:te of Report Year of Report (Il EAn Original (Mo,De,Yr) (2) O A Resubmission Dec.31,19_O STATEMENT OF RETAINED EARNINGS FOR THE YEAR (Continued) Line item Amount No. (a) (bl APPROPRIATED RETAINED EARNINGS (Account 215) State balance and purpose of each appropriated retained earnings amount at end of year and give accounting entries for any applications of appropriated retained earnings during the year. 39 Patronage Capital 30,178 40 41 42 43 44 45 TOTAL Appropriated Retained Farnings (Account 215) 10.178 APPROPRIATED RETAINED EARNINGS-AMORTIZATION RESERVE, FEDERAL (Account 215.1) State below the total amount set aside through appropriations of retained earnings, as of the end of the year, in compliance with the provisions of Federally granted hydroelectric project licenses held by the respondent. If any reductions or changes other than the normal annual credits hereto have been rnade dur-ing the year, explain such items in a footnote. 46 TOTAL Appropriated Retained Earnings Amortization Reserve, Federal (Account 215.1) 47 TOTAL Appropriated Retained Earnings (Accounts 215,215.1) 30.178 48 TOTAL Retained Earnings (Account 215. 215.1, 216) 30,178 UNAPPROPRIATED UNDISTRIBUTED SUBSIDIARY EARNINGS (Account 216.1) 49 Balance - Beginning of Year (Debit or Credit) 50 rqity in Earnings for Year (Credit) (Account 418.1) 51 (Less Dividends Received (Debit) 52 _ Uthe, twanges (Exprein) 53 Balance - End of Year i l L FERC FOR.\1 NO.1 (REVISED 12-81) PCC 113
This Report is: Date of Report Year of Report Nome of Respondent , (1) $ An Orisnal (Mo, D2, Yrl (21 O A Resubmission Dec. 31,19.g4 . VEG&T STATEMENT OF CHANGES IN FINANCIAL POSITION
- 1. This statement is not restricted to those items which are 4. Codes Used:
noncurrent in nature. It is intended that this statement be flexible (a) Such as net increase-decrease in working' capital, etc., enough in nature so that latitude can be given, under the classifi- other than changes in short term investments shown as cation of "Other," to allow for disclosure of all significant item 4(e), changes and transactions, whether they are within or without the (b) Bonds, debentures and other long-term debt. current asset and liability groups. (c) Net proceeds or payments.
- 2. If the notes to the funds statement in the respondbnt's an- (d) Include commercial paper, nual report to stockholders are applicable in every respect to this (e) Identify seoarately such items as investments, fixed statement, such notes should be attached to page 122. assets, intangibles, etc.
- 3. Under "Other" specify significant amounts and group 5. Enter on page 122 clarifications and explanations.
others. Line SOURCES OF FUNDS ISee instructions for explanation of codes) Amounts N s. (a) (bl 1 Funds from Operations 2 Net income 24.178 3 Principal Non Cash Charges (Credits) to income 4 Depreciation and Depletion > nLR 5 Amortization of (Specify) 6 Provision for Deferred o< Futu e 'ncome Taxes (Net) 7 fr ,estmer t Tax Crutit Adiustments 8 (Lm , Allo vance far Other Funds Used During Construction 9 Othe (Net) Decrease In Working Canical 250.752 10 11 12 - _ 14 IS 16 1? TOTAL Funds from Operations (Enter Total oflines 2 thrt d 27o 978 18 Funds from Outside Sources (New Money) 19 Long-Term Debt (b) (c) 29.855.055
/0 Preferred Stock (c) 11 Common Stock (c) ?? Net increase in Short Term Debt (d) 898.144
,],1_ 0:her (Net) _ 24 25 26
'? )8 79 10 11 TOTAL Funds from Outside Sources (Enter Totaloflines 19 rhru 301 30.753.399 12 Sale of Non-Current Assets (e) ll . Contributions from Associated and Subsirliarv Comnanies % l Otner (Net) (a) _
76 - 38 39 , 40 41 42_ 43 TOTAL S3urces of Funds / Enter Totalof fines 17. 31, 7 thrt, .12> 31,030,377 FERC FOIDI NO.1 (REVISED 12-83) Page 120
T m e Name gf Respondent This R: port is: Dato cf Report Year of Report (1) @An Original (Mo, Da, Yr) (2) D A Resubmission Dec. 31,19 M VEGsT STATEMENT OF CH ANGES IN FIN ANCI AL POSITION (Continued) Line l APPLICATION OF FUNDS Amounts No. fel (b) 44 Construction and Plant Expenditures (including Land) 45 Gross Additions to Utility Plant (Less Nuclear Fuell 30.129.7854 46 Gross Additions to Nuclear Fuel 1.041.320 47 Gross Additions to Common Utility Plant 48 Gross Additions to Nonutility Plant Y (Less) Allowance for Other Funds Used Durinn Construction 50 Other TOTAL Application to Const ir' on and Plant Expenditures (including Land) l 51 l 31,171,074 (Enter Total ofline: (45 thru 50) 52 Dividends on Preferred Stock 53 Dividends on Common Stock 54 Funds for Retirement of Securities and Short Term Debt 55 Long-term Debt (b) (c) 56 Preferred Stock (c) 57 Redemption of Capital Stock 58 Net Decrease in Short term Debt (d) 59 Other (Net) 4-62 63 64 8 65 66 Purchase of Other Non-Current Assets (e) .... ... 67 Precavments and deferred charaes (97,470) 68 Preliminary Surveys (43,227) l tiO _ investments in and Advances to Associated and Subsidiary Companies
; /0 ' Other (Net) (a):
71 }; 72 73 74 75 76 77 78 TOTAL Applications of Funds (Enter Total ofline. 57 th I, n' 31.030.377 1 I i I l FERC FORM NO.1 (REVISED 12-83) Page 121
Date tf Report Year af R,9c,it Name cf Respondent This Report Is- * (1) dan Originel (Mo, Da Yr) Dec. 31,198.h. VEGST (21 O A Resubmission NOTES TO FINANCIAL STATEMENTS
- 1. Use the space below for important notes regarding the plan of disposition contemplated, giving references to Commis-Bal*nce Sheet, Statement of Income for the year, Statement of sion orders or other authorizations respecting classification of Ritained Earnings for the year, and Statement of Changes in amounts as plant adjustments and requirements as to disposition Financial Position, or any account thereof. Classify the notes ac- thereof.
- 4. Whue Accounts 189, unamortized Loss on Reacquired cording to each basic statement, providing a subheading for each statement except where a note is applicable to more than one Debt, and 257, unamortized Gain on Reacquired Debc are not used, give an explanation, providing the rate treatment given statement.
- 2. Furnish particulars (details) as to any significant contingent these items. See General Instruction 17 of the Uniform Systems assets or liabilities existing at end of year, including a brief ex- of Accounts.
- 5. Give a concise explanation of any retained earnings restric-p!; nation of any action initiated by the Intemal Revenue Service involving possible assessment of additional income taxes of tions and state the amount of retained earnings affected by such mat: rial amount, or of a claim for refund of income taxes of a restrictions.
matIrial amount initiated by the utility. Give also a brief explana- 6. If the notes to financial statements relating to the respon-tion of any dividends in arrears on cumulative preferred stock. dont company appearing in the annual report to the stockholders
- 3. For Account 116, Utility Plant Adjustments, explain the are applicable and fumish the data required by instructions above origin of such amount, debits and credits during the year, and and on pages 114-121, such notes may be attached hereto.
i i l l i l I l t l Page 122 FEllC FOll\1 NO.1 (IlEVISED 12-81)
1
/Md6 i
VERMONT ELECTRIC GENERATION AND TRANSMISSION COOPERATIVE, INC.
- NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1984 AND 1983 4
{ 1. Summary of significant accounting policies: Basis of presentation - Vermont Electric Generation and Transmission j Cooperative, Inc. (the Cooperative) is under the jurisdiction of the Federal Energy l Regulating Commission, the Rural Electrification Administration and the Public Service Board of Vermont. It maintains its accounts in accordance with their prescribed Uniform System of Accounts. Revenues and expenses - The Cooperative recognizes revenues for electric service and related purchased power costs in the months that bills are rendered as opposed to recognizing revenues and power costs in the month that service is ' received. This method of recognizing energy revenues and power costs is consistent with other rural electric cooperatives. Depreciation - The Cooperative follows the policy of charging to operating expenses annual amounts of depreciation which allocate the cost of the utility plant over its estimated useful life. The Cooperative employs the straight-line method for determining the annual charge for depreciation. The estimated useful life used for transportation equipment was 5 years. Maintenance and repairs are charged to expense as incurred. 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 nethod and periods of from 3 to 30 years for determining the annual charge for amortization. The total amount of amortization charged to expense accounts was $140,505 and $63,596 for 1984 and 1983, respec-tively. Corporate structure and income taxes - The Company is a cooperative, nonprofit and non-stock membership corporation organized under provisions of the Electric Cooperative Act of Vermont. As a result, the Cooperative is exempt from federal income taxes in accordance with the Internal Revenue Code, Section 501(c)(12).
- 2. Other investments:
The investment account includes the following, at cost, as of December 31: 1984 + 1983 Cooperative Finance Corporation membership $ 1,000 $1,000 National Rural Electric Cooperative Association membership 10 10 N.R.U.C.F.C. Capital Term Certificates 17,167 - N.R.U.C.F.C. Patronage Capital Certificates 18,278 -
$36,455 $1,010
/3&'
I VERMONT ELECTRIC GENERATION AND TRANSMISSION COOPERATIVE, INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1984 AND 1983
- 3. Deferred charges:
The balance in deferred charges consisted of the following as of December 31: Amortization 1 Period 1984 1983 l Seabrook investigation None S 37,976 $ - 4 Millstone Unit No. 3 investigation None 2,194 - Preliminary survey - Hydroquebec g tie-line - Phase 2 None 750 - g North Hartland alternate financing None 1,836 - Seabrook Unit 2 1985 - 2015 2,306,420 - Preliminary survey - load control None 49,125 34,097 Vermont Yankee downtime - 1983 1983 - 1986 103,989 166,389 I Loan cost BF8 None 17,847 17,847 Preliminary survey - Hydroquebec tie-line - Phase 1 None 12,833 11,851 I Vermont Yankee downtime Loan costs BC8, BA4 1981 - 1986 41,812 27,559 80,408 3,117 None Loan costs A8 None 50,118 28,961 i Start-up costs Pilgrim Unit No. 2 1981 - 1986 1984 - 2014 7,773 1,023,951 11,973 6,747 Preliminary survey - coal generation None - 47,153 Millstone Unit No. 3 None 6,505 i Seabrook Units 1 & 2 None - 6,878 S3,684,183 S421,926 i
- 4. Long-term debt:
1 The Cooperative was indebted as follows as of December 31: 1984 1983 1 Mortgage notes payable, U. S. Department of Agriculture Rural Electrification Administration (R.E.A.) - 5% mortgage notes $14,537,074 5 492,400 Mortgage notes payable Federal Financing Bank (F.F.B.) - 11.082% mortgage note, advance dated 08/16/83 1,336,000 1,336,000 10.828% mortgage note, advance dated 12/29/83 1,500,000 1,500,000 lq 10.497% mortgage note, advance dated 10/06/83 1,700,000 1,700,000 10.838% mortgage note, advance dated 08/19/83 2,023,000 - 10.478% mortgage note, advance dated 10/07/83 158,000 - 10.497% mortgage note, advance dated 10/06/83 1,800,000 - 11.033% mortgage note, advance dated 03/02/84 4,880,000 -
. $h)
VERMONT ELECTRIC GENERATION AND TRANSMISSION COOPERATIVE, INC. NOTES TO FINANCIAL STATEMENTS 1 DECEMBER 31, 1984 AND 1983 l
- 4. Long-term debt (continued):
1984 1983 12.926% mortgage note, advance dated 06/12/84 334,000 - 12.403% mortgage note, advance dated 09/10/84 2,000,000 - 11.908% mortgage note, advance dated 09/28/84 1,540,000 - 10.526% mortgage note, advance dated 12/04/84 1,500,000 - 10.497% mortgage note, advance dated 12/11/84 1,095,000 - 11.527% mortgage note, advance dated 12/06/84 480,380 - 20,346,380 4,536,000
$34,883,454 $5,028,400 The mortgage notes payable to R.E.A. are for 35-year terms each. During the first 5 years of each note, interest only is due quarterly. At the end of the first 5 years, principal amortization begins using a 30-year payback period.
Payments of principal and interest are due quarterly in equal amounts. As of the end of 1984, principal amortization on $10,866,000 of the total outstanding had not commenced. The notes mature in various years through 2018. During 1984,
$13,970,173 of R.E.A. debt was transferred to the Cooperative from Vermont Electric Cooperative, Inc.
The mortgage note advances from F.F.B. are for an initial 2-year term. At the end of the initial 2-year period, they can be rolled over for an additional term of from 2 to 5 years before being converted to long-term debt with principal amorti zation. The Cooperative may select a long-tena maturity date which is the last day of a calendar year up to 34 years af ter the calendar year in which the advance was made. At the end of 1984, only one advance, $480,380, has been converted to a long-term maturity, due in 2016. The remaining advances could be extended to 1990 and 1991 before any amortization of principal would be required. Payments on these notes are due quarterly. During 1984, $3,981,000 of F.F.B. note advances were transferred to the Cooperative from Vermont Electric Cooperative, Inc. At year end, a $2,500,000 note was approved with F.F.B. No amounts have been advanced. All of the assets of the Cooperative are pledged as security under the above mentioned notes. The following is a schedule of required principal payments on long-term debt from December 31, 1984: 1985 $ 90,942 1986 136,200 1987 200,773 1988 243,127 1989 259,050 Later years 33,953,362
$34,883,454 I
7- _h I VERMONT ELECTRIC GENERATION AND TRANSMISSION COOPERATIVE, INC. I NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1984 AND 1983 1
- 5. Line of credit:
1 A line of credit agreement has been executed with the National Rural Utilities Cooperative Finance Corporation (C.F.C.) providing the Cooperative with short-term loans in the amount of $6,500,000 on a revolving basis for a period of I twelve months which terminates on July 30, 1985. Interest on unpaid principal is payable quarterly. At December 31, 1984, $4,671,643 had been drawn of this line of credit.
- 6. Associated company:
Officers and some of the trustees of the Cooperative are also officers and trustees of the Vermont Electric Cooperative, Inc. (the VEC). Transactions between the Cooperative and VEC, and related amounts receivable and payable from these I transactions, are summarized as follows: 1984 1983 Purchases of energy by VEC $2,968,381 $2,766,238 i Accounting, construction and other services provided by VEC $235,844 $152,309 Accounts receivable $217,497 $214,869 i Cash advance payable 5318,000 $- Summarized financial information for VEC is as follows: 1984 1983 l ASSETS l Utility plant, net $17,819,933 $36,028,839 Investments and other assets 1,422,779 1,296,524 l 3 1,719,846 i q Current assets 2,583,926 Deferred charges, net 531,126 603,657 ! $22,357,764 $39,648,866 LIABILITIES AND EQUITIES Equities $ 5,074,012 $ 4,127,219 Long-term debt 16,236,789 33,584,720 Current liabilities 1,029,735 1,914,397 ,g 17,228 22,530 q Deferred credits
$22,357,764 $39,648,866
/.2 Xf)
VERMONT ELECTRIC GENERATI0W AND TRANSMISSION COOPERATIVE, INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1984 AND 1983
- 6. Associated company (continued):
1984 1983 OPERATIONS Operating revenues S 8,443,287 5 7,318,318 Operating expenses (7,969,952) (7,535,417) Nonoperating income 230,328 187,830 Net income (loss) $ 703,663 $ (29,269) In January, 1984, ownership of generation assets relating to Millstone Unit No. 3, Pilgrim Unit No. 2, Seabrook Units 1 & 2 (see Note 7), and related debt, were transferred from VEC to the Cooperative. The book value of these assets and related debt at the time of the transfer date amounted to approximately $19,424,000 and $17,948,000, respectively.
- 7. Nuclear power projects:
In January,1984, all of the costs and related debt for Seabrook Units 1 & 2, Millstone Unit No. 3 and Pilgrim Unit No. 2 were transferred from an associated company to the Cooperative (see Note 6). Pilgrim Unit No. 2 was cancelled in 1981. The Cooperative is amortizing its costs of $1,065,000 commencing in 1984 over a period of 30 years in line with the terms of the financing for the project. No significant additional costs are expected. The Cooperative has entered into commitments to build Seabrook Unit 1 and Millstone Unit No. 3. The Cooperative's estimated costs to construct these projects is approximately $21,000,000 for the Seabrook Units, and approximately $13,260,000 for the Millstone Unit. Costs incurred through December 31, 1984 amounted to approximately $14,381,521 for the Seabrook Unit, and approximately $10,315,261 for the Millstone Unit. Completion of these nuclear generating units is contingent upon obtaining necessary regulatory approvals, permits and sufficient financing. During 1984, Seabrook Unit 2 was cancelled. Costs of $2,306,419, associated with Seabrook Unit 2, are reflected in the financial statements in deferred charges and will be amortized over 30 years starting in 1985. The Seabrook Project represents a major connitment for the Cooperative. The Project has been subjected to delays and cost increases since construction begun in 1976 with the Public Service Company of New Hampshire ("PSNH") as lead owner. Construction was temporarily suspended during April,1984, when PSNH was having a severe financial crisis. Reduced level construction was resumed in July, 1984, after the joint owners modified the Joint Ownership Agreement to allow the transfer af ter regulatory approval of responsibility for the completion of Seabrook Unit 1 from PSNH to New Hampshire Yankee, an independent division of PSNH. Current-ly, New Hampshire Yankee estimates that Unit I will be completed for financial planning purposes in August, 1987.
-S-
/5XS k
VERMONT ELECTRIC GENERATION AND TRANSMISSION COOPERATIVE, INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1984 AND 1983 1
- 7. Nuclear power projects (continued):
The Vermont Public Service Board issued an order May 3,1985 directing
" Vermont utilities to attempt to disengage from the Seabrook Project by all prudent l means including, specifically, offering their interests for sale and voting for cancellation". The PSB will hold further hearings in order to determine if it should order the utilities to stop further payments. Generic regulatory proceedings are underway in other states evaluating the reasonableness of completing Unit 1.
At present, possible financing plans considered by the joint owners g include prefinancing Unit I ccmpletion costs through a new entity known as q "Newbrook", obtaining a satisfactory bank letter of credit or being an "A" rated utility. The Cooperative is unable to determine if all approvals and financings can be arranged in order to allow timely completion of Unit 1.
- 8. Purchased power:
Power purchased by the Cooperative is obtained 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"), owned and operated by the Public Service Company of New Hampshire. The Merrimack contract expires in 1998. The Vermont Yankee and Merrimack purchase I contracts are take or pay contracts which require the Cooperative to pay its propor-tionate share of the fixed costs of such facilities even during periods when power is not being generated by such facilities or being delivered under such contracts. I Such fixed costs represent a substantial portion of the total cost for power paid by the Cooperative from these sources. Vermont Yankee is scheduled to be shut down eight months for pipe repairs beginning in September,1985. The Cooperative, along with other utilities having entitlement contracts with Vermont Yankee, has entered into an agreement with Vermont Yankee under which l the Cooperative is responsible for its proportionate share of plant decommissioning q expenses. Annual contributions are made to a decommissioning fund until Vermont l Yankee's operating license expires in 2007. As of December 31,1984 and 1983, the l Cooperative's share of decommissioning expense was $40,790 and 516,255, respec-tively. The Cooperative entered into an agreement with three operating companies of the Northeast Utilities System, Connecticut Light and Power Company ("CL&P"), the Hartford Electric Light Company ("HELC0") and Western Massachusetts Electric Company ("WMEC0"), to purchase a portion of the capacity and output of five gas turbine l l generating units owned by CL&P, HELCO and WMEC0. The agreement runs from Nnvember. l 1982 through October,1985. These agreements require the Cooperative to pay its I proportionate share of fixed costs regardless of the actual output of any of the units at any time. Such fixed costs represent a substantial portion of the total ll cost for power paid by the Cooperative.
9
. 55h VERMONT ELECTRIC GENERATION AND TRANSMISSION COOPERATIVE, INC.
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1934 AND 1983
- 8. Purchased power (continued): !
l The Cooperative contracted to purchase approximately 4016 KW's of Hydro-Quebec power through an agreement with the State of Vermont. In addition, under an agreement with VELCO, the Cooperative has a 2.68% ownership in the Highgate con-verter station presently being built to transmit the Hydro-Quebec power. As of December 31, 1984, the Cooperative has invested approximately $245,000 out of a total obligation of approximately $737,000. The Cooperative is a member of the New England Power Pool ("NEP00L"). Electric power supply facilities in New England are operated under Cooperative arrangements provided for by the NEP00L Agreement which became effective in 1971. Thi.; agreement provides for joint planning and operation of generation and trans-mission facilities, and also incorporates generating capacity reserve obligations and provisions regarding the use of major transmission lines and payment for such use. l The Cooperative has a contract with Central Vermont Public Service l Corporation ("CVPSC") to purchase power from CVPSC. From November, 1983 through October, 1984, 17,200 KW's were purchased, and from November,1984 through October, i 1985, 16,000 KW's are purchased. The contract expires in 1992. In 1984, the Cooperative entered into an agreement through VELCO to participate in the savings associated with the High Voltage Direct Current trans-mission line Phase I and Phase II being constructed in Vermont for the transmission of Hydro-Quebec power to NEP00L. The percentage of energy acquired from the above power contracts for the years ended December 31 is as follows: 1984 1983 l Central Vermont Public Service Corporation 72.8% 74.3% Vermont Yankee 19.1 18.6 Merrimack 2 7.0 6.1 NEP00L .9 .9 i Northeast Utilities .2 .1 100.0% 100.0%
- 9. Commitments:
l The Cooperative is in the process of building a hydroelectric project in North Hartland, Vermont. The Cooperative estimates that total development costs for i the project will amount to approximately $14,000,000. At present, regotiations are underway for the sale and leaseback of this facility. It is anticipated that, if the sale is consummated, the proceeds will be used to reduce the outstanding debt
- with R.E.A. and F.F.B.
l, _7
Mk VERMONT ELECTRIC GENERATION AND TRANSMISSION COOPERATIVE, INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1984 AND 1983
- 10. Contingency:
The Cooperative is in the process of negotiating a settlement with a former contractor relating to construction costs of the North Hartland Hydro Project. The Cooperative has made an offer to settle the claim, subject to R.E.A. approval, for an amount of approximately $500,000. The Cooperative currently has provided approximately $150,000 on the books of the Cooperative. No additional liabilities have been provided in these financial statements at the present time.
- 11. Subsequent events:
In March,1985, the Vermont Department of Public Service filed a lawsuit against the Vice President and Executive Manager of Vermont Electric Generation and Transmission Cooperative, Inc., its board members ar.d the Cooperative. The suit seeks to void the granting of the $100,000 bonus, compensatory damages of $100,000 from each defendant, plus interest, and punitive damages against each defendant of $100,000, all for the benafit of Vermont Electric Generation and Transmission Cooperative, Inc., its members, Vermont Electric Cooperative, Inc. and Vermont Electric Cooperative, Inc. rate payers. In March, 1985, the Vermont Electric Cooperative, Inc. filed a lawsuit against the trustees and the Vice President and Executive Manager of the Cooperative alleging breach of fiduciary duties and waste of corporate assets and seeking to recover a $100,000 cash bonus, a 1980 vehicle, compensatory damages of $150,000, plus interest, and punitive damages of $100,000 against each defendant. At the present time, the suit is still in the discovery stages. In March,1985, 'an additional $550,000 was advanced to the Cooperative by Vermont Electric Cooperative, Inc.
4 Nome of Respondent TNs Report is: Date af Report Year cf Report (Il OAn origines (Mo. Ds. Yrl (2) OA Resubminion Dec.31.19 _ NOTES TO FINANCIAL STATEMENTS (Continued) f FERC FORM NO.1 (REVISED 12-81) Page 123 uent page!s 200 ____
g Name or Hesporcrnt This Report is: D te of Report Year cf Report M II) 3 An Original (Mo, Da, Yr) h VEGr,T n) O A Resubmission Dec.31,1AR4 o
SUMMARY
OF UTILITY PLANT AND ACCUMULATED PROVISIONS FOR DEPRECIATION, AMORTIZATION AND DEPLETION k Line
.j- item Total Electric Gas Other (Specify) Other (Specifyl
'8 - Common O
(a) (b) (c)
^ (d) (e) (!! (el g 1 UTILITY PLANT m 2 in Service h
m 3 4 Plant in Service (Classified) 32,640 32,640 Property Under Capital Leases i $ 5 Plant Purchased or Sold t;> 6 Completed Construction not Classified f 7 Experimental Plant Unclassified 8 TOTAL (Enter Totaloflines 3 thru 1) 32.640 32.640 9 Leased to Others 10 Held for Future Use 11 Construction Work in Progress 3q.059.369 39.059,369 12 Acquisition Adjustments y 13 TOTAL Utahty Plant (Enter Totaloflines 8 thru 121 qq 092_009 39.092.009 g 14 Accum. Prov. for Depr., Amort., & Dept. la_q48 4.948 m 15 Net Utility Plant (Enter Totalof hne 13 /ess 141 39 O87_061 39.087.061 o DETAIL OF ACCUMULATED PROVISIONS FOR 16 DEPRECI ATION. AMORTIZATION AND DEPLETION 17 in Service: 18 Depreciation 4.948 4,948 Amort. and Dept. of Producing Natural Gas Land 19 and Land Rights Amort.of Underground Storage Land and Land 20 Rights 21 Amort. of Other Utility Plant 22 TOTAL in Servsce (Enter Total oflines 18 thru 21) h qh8 h,948 23 Leased to Others
. 24 Depreciation 25 Amortization and Depletion 26 TOTAL Leased to Others (Enter Totaloflines24and2S) 27 Held for Future Use 28 Depreciation 29 Amortization 30 TO TA L H=M f or Future Use (Enter Totatoflines28and29) 31 Abandonrnent of Leases (Natural Gas) 32 Amort. of Plant Acquisition Adj.
TOTAL Accumulated Provisions (Should agree with line 33 14 aboveI(Enter Totaloflines22,26,30,31 and32) 4,qh8 4,948 . v m -
Name af Respondent This Report is: [ Date of Report Year of Report
- 3ll1 (1) @ An Original (Mo. Da, Yr) h O
VEG&T (2) O A Resubmission Dec. 31,19 8 '4 NUCLEAR FUEL MATERIALS (Accounts 120.1 through 120.6 and 157) k 1. Report below the costsincurred fornuclearfuel 2. If the nuclear fuel stock is obtained under less. quantity on hand, and the costs incurred under such 2 gj materials in process of fabrication,on hand,in reactor, ing arrangements, attach a statement showing the leasing arrangements. and in cooling; owned by the respondent. amount of nuclear fuel leased, the quantity used and Changes During Year s Lin' ' Description of item 8"C' Other Reductions Balance C sy, Beginning of Year Additions Amortization End of Year (Explain in a footnotel a la) tbl (ci idt (e) iff
- 1 Nuclear Fuel in Process of Refinement, Conversion, Enrichment & Fabrication (120.1) 117.163 _864.425 _ 981.588 2 Fabrication 3 Nuclear Materials 4 Allowance for Funds Used during Construction 4.336 176.895 181,231 n 5 Other Overhead Construction Costs y 6 SUBTOTAL (Enter Total of fines 2 thru S) 121.499 1,162.819 y 7 Nuclear Fuel Materials and Assemblies 3 8 in Stock (120.2) 9 in Reactor (120.3) 10 SUSTOTAL (Enter Total of lines 8 and 9) 11 Spent Nuclear Fuel (120.4) 12 Nuclear Fuel Under Capital Leases (120.6) 13 Less Accum. Prov. for Amortization of Nuclear Fuel Assemblies (120.5) 121.499 1,162,819 14 TOTAL Nuclear Fuel Stock (Enter Totalof lines 6,11, and 12lessline 13) 15 Estimated Net Salvage Value of Nuclear Materials in line 9 16 Estimated Net Salvage Value of Nudear Materials in line 11 17 Estir,ated Net Salvage Value of Nuclear y"-
Materials in Chemical Processing 18 Nuclear Materials Held for Sale (157) 1 19 Uranium l 20 Plutonium j 21 Other 22 TOTAL Nuclear Materials Held for Sale (Enter Totaloflines 19,20, and 21)
Narne of Respondent [ Tfws Report is: Date at Report Yearif Report M II) @ An Ononal (Mo, De, Yr) VFCF.T (2) OA Resutmssion Dec.31,18E4 O ELECTRIC PLANT IN SERVICE (Accounts 101,102,103, and 106) M g 1. Report below the original cost of electric plant in 3. Include in column (c) or (d), as appropriate, cor- counts, on an estimated basis if necessary, and include y service accordng to the prescribed accounts, rections of additions and retirements for the current or the entries in column (c). Also to be included in column o 2. In addition to Account 101, EAectric Not in Ser- preceding year. (c) are entries for reversals of tentative distributions of
~
vice ICAessifsdl, this page and the next include Account 4. Enclose in parentheses credit adjustments of plant prior year reported in column (bl. Likewise, if the 102 EJectric mnt Pterchased or Sold; Account 103, Ex- accounts to indicate the negative effect of such respondent has a significant amount of plant retirements g perimenta/ Electric Plant Unclassified; and Account 106, amounts. which have not been classified to primary accounts at Completed Construction Not Classdied-Electric. g
- 5. Classify Account 106 according to prescribed ac-(Continued on page 204)
Line Balance at Bolence at Account Bogenning of Year Addsesons Retsromonte : F- _a NG' Transfers End of Year 4 y fal (bl (cl id) ta) ^ til IQ) J I 1. INTANGlBLE PLANT ::::::: ::ijii! sls :::q::: )::!:i ::W: 5%i: Y 2 (301) Organization 19.167 19.167
$ 3 (302) Franchises and Consents 4 (303) M scellaneous intangible Plant c;00 500 5 TOTA L Intangible Plant er.. rer.i., s-i- 2. s. .mr
- 1 q (47 19.667 6 2. PRODUCTION PLANT 5kii
- Ufii 7 A. Steam Production Plant i:s:i: iii$5 i:!:i:i: !!!!5 8 (310) Land and Land Rights y 9 (311) Structures and Improvements g 10 (3121 Boiler Plant Equipment g 11 (313) Engines and Enoine Driven Generators N 12 (314) Turbogenerator Units 13 (315) Accessory Electric Equipment 14 (316) Misc. Power Plant Equipment 15 ToiAt stum haduct.on mnt (Entn Torat of sees a ruu 14>
~
16 8. Nuclear Production Plant ~ Y :$: !S$5 :P 5:ils 17 (320) Land and Land Rights 18 (321) Structures and improvements 19 (322) Reactor Plant Equipment 20 (323) Turbogenerator Units 21 (324) Accessory Efectric Equipment 22 (325) Misc. Power Plant Equipment 23 Toi AL huc4 ear Roducten Plant (Enra Torat or /mes 17 treru 221 1 24 C. Hydraulic Production Plant iUA5 ;iiE i iiiN !EE!! !![$i!! ii$$
'25 (330) Land and Land Rights 26 (331) Structures and Improvements 27 (332) Reservoirs, Dams, and Waterways 28 (333) Water Wheels. Turbines, and Generators 29 (334) Accessory Electric Equipment 30 (335) Misc. Power Plant Equipment 31 (33E) Roads Railroads, and Bridges 32 tot A L Hydraulac hoducteon Nnt (Enta Torstet smes 25 ttru Jff
- V
Date of Report Year of Repcet This Report is: , Name of Respondent M (t) E An Orignal (Mo, De, Yr) M O VEGST oec. m , i& (21 O A n e ion
=rt ELECTRIC PLANT IN SERVICE (Accx>unts 101,102,103, and 106) (Continued)
O
'% Balance at Balance at
~ h Adjustments Transfers End of Year Account Beginrung of Year Additions Retinements 2 No ter ut 191 ter ibi tcI tas
.O - 33 D. Other Production Plant ' in 34 (340) Land and Land Rights 35 (341) Structures and improvements Q (342) Fuel Holders, Products,and Accessories g 36 y 37 (343) Prime Movers 38 (344) Generators '? 39 (345) Accessory Elec* tic Equipment 40 (346) Misc. Power Plant Equipment 01 TOTAL Other Production Plant (Enter Total of fines 34 thru 40]
- 42 TOTAL Production Plant (Enter Totaf of lines 15, 23, 32, and 41) 43 3. TRANSMISSION PLANT edi 1 44 (350) Land and Land Rights @
45 (352) Structures and Improw . wats E
$ (353) Station Equipment A
46 . 47 ("Mi4) Towers and Fixtures M 48 (355) Poles and Fixtures 8 49 (356) Overhead Conductors and Devices 8 50 (357) Underground Conduit 8 51 (358) U. byound Conductors and Devices 8 52 (359) Roads and Trails 53 TOTAL Transmission Plant (Enter Total of of lines 44 thru S2) 54 4. DISTRIBUTION PLANT 55 (360) Land and Land Rights 56 (361) Structures and improvements 57 (362) Station Equipment 58 (363) Storage Battery Equipment 59 (364) Poles, Tc;.rs, and Fixtures 60 (3(Mil Overhead Conductors and Devices 61 (366) Underground Conduit 62 (367) Underground Conductors and Devices 4 63 (3(18) Line Transformers 64 (3(19) Services Si (370) Meters 66 (371) Instattations on Customer Premises l
Th.s Report is: Date of Repor Year of Report Nome utf Respondent [ (1) @ An Origines (Mo, De, Yr) X , O VEG&T v2i O A nesubm.ss.on Dec.31,19 $ C ELECTRIC PLANT IN SERVICE (Accounts 101,102,103, and 106) (Continued) T~ v 7. For Account 399, state the nature and use of plant ~ the end of the year, include in column (d) a tentative amount of respondent's plant actually in service at end 2 distnbuti;n of such retirements, on an estimated basis, of year. included in this account and if substantial in amount with appropriate contra entry to the account for ac- 6. Show in column (f) reclassifications or transfers submit a supplementary statement showing subaccount .C classification of such plant conforming to the re- - curnulated deprecation provision. Include also in col- within utility plant accounts. Include also in column (f) - umn (d) reversals of tentative distributions of prior year the additions or reductions of primary account classifi- quirements of these pages. W of unclassified retirements. Attach supplemental state- cations arising from distribution of amounts initially 8. For each amount comprising the reported balance rnent showing the account distnbutions of these ten- recorded in Account 102. In snowing the clearance of and changes in Account 102, state the property pur-4@ tative classifications in columns (c) and (d), including Account 102, include in column (e) the amounts with chased or sold, name of vendor or purchaser, and date respect to accumulated provision for depreciation, ac- of transaction. If proposed journal entries have been $ the reversals of the poor years tentative account distnbutions of these amounts. Careful observance of quisition adjustments, etc., and show in column (f) only filed with the Commission as required by the Uniform O System of Accounts, give also date of such filing. ._ the above instructions and the texts of Accounts 101 the offset to the debits or credits distributed in column
- 4, and 106 will avoid serious omisssons of the reported (f) to primary account classifications.
3 Balence at Line Balance at Transfers Account Bogeneng of Year Additions flotirements Adjustments End of Yeer No. (c) (d) (a) (91 (al (b) _ (il 67 (372) Leased Property on Customer Premises 68 (373) Street Lighting and Signal Systems y 69 TOTAL Distribution Plant (Enter Totalof g lines SS thru 68) 70 5. GENERAL PLANT 71 (389) Land and Land Rights 72 (390) Structures and improvements 73 (391) Office Furniture and Equipment 74 (392) Transportation Equipment 12.973 17.47t 75 (393) Stores Equipment 76 (394) Tools, Shop and Garage Equipment 77 (395) Laboratory Equipment 78 (396) Power Operated Equipment 79 (397) Communication Equipment 80 (398) Miscellaneous Equiprnent 81 SUBTOTAL (Enter Totaloflines 71 thru 80) 12.973 12.973 82 (399) Other Tangible Property 83 TOTAL General Plant (Enter Totalof lines 81 and 82) 12.973 17 471 84 'OTAL'tec/ - -e and 16- 32.640 12.640 g . p c- a a .na ed >ee i. s s 86 u (102: Electric Plant Soki (See s.rstr. B) 87 104 ex e. v- a
- c- e are Unclass" d 88 TOTAL Electric Plant in Service 32.640 32.640 M
.y Nome tf Respondent This Report is: Date af Report YearCf Report (1) 0An Oripnet (Mo, De, Yr)
(2) O A Resubmi.sion Dec. si, isAh. ELECTRIC PLANT LEASED TO OTHERS (Account 104)
- 1. Report below the information called for concerning electric 2. In column (c) give the date of Commission authorization of plant leased to others. the lease of electric plant to others.
Name of Lessee Commission Erpiration b (Designete associated compenies Descripton of Author. Date of Balance at i No. with an asterisk / Property Leased ization Lease End of Year (al (bl (cf (d) (e) 1 2 3 4 5 6 7 8 9 10 11 12
, 13 l 14
' 15 16 17 l 18 19 i lNTENTIONALLY BLANK 22 23 j 24
! 25 26 27 28 29 30 31 32 .-
33 34 35 36 l 37 l 38 39 40 41 42 43 44 l 45 l 46 l 47 TOTAL FERC FORM NO.1 (REVISED 12-81) Page 207
This Report is: D;t)of Report Year of Report Nome of Respondent
, (1) GAn Original (Mo,Da,Yr)
(2) O A Resubminion Dec.31,19dh. VEG&T ELECTRIC PLANT HELD FOR FUTURE USE (Account 105)
- 1. Report separately each property held for future use at end previously used in utility operations, now held for future uss, give of the year having an original cost of $250,000 or more. Group in column (a), in addition to other required information, the date other items of property held for future use. that utility use of such property was discontinued, and the date
- 2. For property having an original cost of $250,000 or more the original cost was transferred to Account 105.
Date Originally Date Expected Balance at Description and Location Une included in to be Used in End of of Property N r. This Account titility Service Year tal (bl (c) id) 1 Land and Land Rights: 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Other Property: 21 22 23 t 24 INTENTIONALLY BLANK 25 26 j 27 28 29 j 30 l 31 l 32
- 33 34
- 35 1 36 l 37 38 L. '
39 , 40 41 42 43 ) 44 45 l 46 _ ,_,_ _ _ 47 TOTAL FERC FOR31 NO. I (REVISED 12-81) Page 208 Next Pace is 210 t
o BLANK PAGE (Next Page is 210) O ( l
Nomeif Respondent This Report is: Date af Report Year ci Report (Mo, Da, Yr) (1) san Orivnel VEG&T (21 OA Resubminion Dec. 31,19M CONSTRUCTION WORK IN PROGRESS-ELECTRIC (Account 107)
- 1. Report below descriptions and balances at end of year of ment, and Demonstration (see Account 107 of the Uniform projects in process of construction (107). System of Accounts).
- 2. Show items relating to "research, development, and 3. Minor projects (5% of the Balance End of the Year for Ac-
. demonstration" projects last, under a caption Research, Develop- count 107 or $100,000, whichever is less) may be grouped.
Construction Work Line Description of Project in Progress-Electric No. (Account 107) la) (b) 1 North Hartland Tie Line 497,487 2 3 North Hartland Generating Facility 12,476,070 4 5 Millstone 3 Transmission 13,331 6 7 Millstone 3 Generating Facility 9,906,830 8 9 Seabrook Project Transmission 44,343 10 11 Seabrook Project Generating Facility 15,875,879 12 13 Highgate Tie Line 245,429 14 15 16 17 18 19 20 21 22 l 23 24 25 2G 27 28 29
' 30 i 31 , 32 , 33 l34 l 35 ! ' 36 i 37 38 39 ; 40 41
- 42 h 43 44 45 46 TOTAL 39,059,369 j 1
"ERC FOlut NO.1 (REVISED 12-81) Page 210
4- e . . - .
, , at t;
...3 Nome of Respondent This Report is: Dete of Report Yest of Report (1)OAn Original (Mo, De, Yr)
VEG&T (2) OA Re.ubm.emon osc.31, son CONSTRUCTION OVERHEADS-ELECTRIC
- 1. List in column (a) the kinds of overheads according to the titles used apportionments are made, but rather should explain on page 212 the ac-by the respondent. Chorges for outside pro *eesional services for counting procedures employed and the amounts of engineering, supervi-engineenng fees and management or supervision fees capitalized should sion and administrative costs, etc., which are directly charged to con-be shown as seperate items. struction.
2.On pege 212 fumish information concoming construction 4. Enter on this page engineenng. supervision, administrative, and overheads. allowance for funde used during construction, etc., which are first as-
- 3. A respondent should not report "none" to this page if no overhead signed to a blanket work order and then prorated to construction jotet.
Total Amount Line Desenption of Overhead Charged No. for the Yest I (a) (b) 1 l 3' ( 4 l 5 6 i 7 8 9 10 11 SEE PAGE 212 12
} 13 1 14 ! 15 16 ! 17 I 18 l 19 20 21 22 23 24 25 26 27 28 29 30
.' 31 a
) 32 3 33 34 j 35 36
't
- ! 37 38 l
. 39
'l 40 41 (- .:I 42 43 .t 44 l i
#6
, 46 TOTAL Page 211 f7ERT F1RQ RIG 0 CREVIZED OR f30D J
Nerne of Respondent This Report is: Date af Report
- Year a f Report (1) OAn OrCnal (Mo, Da Yr)
VEGr,T (2) OA Resubmission Dec. 31,19h GENERAL DESCRIPTION OF CONSTRUCTION OVERHEAD PROCEDURE )
- 1. For each construction overhead expla:n: (a) the nature and 2. Show below the computation of allowance for funds used cxtent of work, etc., the overhead charges are intended to cover, during construction rates, in accordance with the provisions of (b) the general procedure for determining the amount capitalized, Electric Plant Instructions 3 (17) of the U.S. of A.
(c) the method of distribution to construction jobs, (d) whether 3. Where a net-of tax rate for borrowed funds is used, show different rates are applied to different types of construction, (e) the appropriate tax effect adjustment to the computations below basis of differentiation in rates for different types of construction, in a manner that clearly indicates the amount of reduction in the and (f) whether the overhead is directly or indirectly assigned. gross rate for tax effects. Due to the nature and number of the Cooperative's work orders, all overhead type charges are assessed directly to their work in progress accounts. Labor charges are based on time sheet data. Project Labor Other Total North Hartland 39,021 38,229 77,250 Millstone 3 1,673 988 2,667 seabrook 15,465 9,661 25,126 Highgate 234 143 317 56,399 49,021 105,420 COMPUTATION OF ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION RATES For line 1(5), column (d) below, enter the rate granted in the last rate proceeding. If such is not available, use the average rate actu-ally earned during the preceding three years.
- 1. Components of Formula (Derived from actual book balances and actual cost rates):
L..ie rit'e Amount No. Ratio (Percent) Percentage fa ' (b) (c) (d) (18 Aveeage Shos t Teien Cetit S (2) Shot t tee m intree.I s (3s I.nn<j ie rn Debt f) d I18 Praten ant Stock ' i' p f!o Con an.,,, Erp ty .L c Y. Total C in tal >aton i 100% f<s Avesaq. Constontro" foik ni Pn .o. cw 0 1 n. .
- 2. S Gross Rate for Borrowed Funds '
s ( y9 ) + d ( D + P C ' "
)
- 3. Rate for Other Funds 1 ~
)( D+P+C ' +C
- 4. Weighted Average Rate Actually Used for the Year:
- a. Rate for Borrowed Funds 8.537%
- b. Rate for Other Funds-rERC FOR\l NO.1 (REVISED 12 82) Page 2T2
Name of Hespondent Ttus Report Is: Date ett Report Year af Report
] IMo De, Yr)
M 111 O An Onenal 1210A R.subtr.s o.c.3t 19 S 4 h VEG&T O ACCUMULATED PROVISION FOR DEPRECIATION OF ELECTRIC UTILITY PLANT (Account 108) s
- 1. Explain in a footnote any important adjustments 3. The provisions of Account 108 in the Uniform tries to tentatively functionalize the book cust of the
}j -c during year. System of Accounts require that retirements of plant retired. In addition, include all costs included in
- 2. Explain in a footnote any difference between the depreciable plant be recorded when such plant is retirement work in progress at year end in the ap-
- amount for book cost of plant retired, line 11 column removed from service. If the respondent has a signifi- propriate functional classifications.
'N (c), and that reported for electric plant in service, pages cant amount of plant retired at year end which has not 4. Show separately interest credits under a sinking g
< 202-204, column (d), excluding retirements of non- been recorded and/or classified to the various reserve fund or s:milar method of depreciation accounting.
Di depreciable property functional classifications, make preliminary closing en-m C Section A. Balances and Changes During Year Total Ic + d + el Electric Plant in Service Electric Plant Held for Future Use Electric Plant Leased to Others _- h tal (b) (cl id) fel 1 Balance Beginning of Year 2,900 2,900 2 Depreciation Provisions for Year Charged to 3 (403) Depreciation Expense 4 (413) Expenses of Electric Plant leased to Others y 5 Transportation Expenses-Clearing 2.048 2.048
% 6 Other Oearing Acmunts y I Other Accounts (Specify1 8d 8 9 TOTAL Depreciation Provisions for Year (Enter Totalof lines 3 tfru 81 2.048 2.048 j 10 Net Charges for Plant Retired 11 Book Cost of Plant Retired 12 Cost of Removal j 13 Salvage (Credit) 14 TOTAL Net Charges for Plant Retired (Enter Tolat of lines 11 t/ru 131 15 Other Debit or Credit items (Describel 16
\ 11 Balance End of Year (Enter Total of lines 1,9,14,15, and 16) 4.q48 4.948 Section B. Balances at End of Year According to Functional Classifications 18 Steam Production 19 Nudear Production 20 Hydraulic Production-Conventional 21 Hydraulic Production-Pumped Storage 2 22 Other Production M 23 Transmission 2 24 Distribution
% 25 General 4,948 4,948 a & 26 TOTAL (Enter Total of lines 18 tfru 25) 4,948 4,948
}
BLANK PAGE ! (Next Page is 215) i I
This Report is: 0;c cf Report Year Cf Report Nome af Respondent (11 O An Orignal (Mo, De, Yr) Dec. 31,19M V EGt,T (21 O A Resutmwion NONUTILITY PROPERTY (Account 121)
- 1. Give a brief description and state the location of nonutility 4. List separately all property previously devoted to public ser-l
, property included in Account 121. vice and give date of transfer to Account 121, Nonutihty Property. ! 2. Designate with an asterisk any property which is leased to 5. Minor items (5% of the Balance at the End of the Year for
- another company. State name of lessee and whether lessee is an Account 121 or $100,000, whichever is less) may be grouped by I associated company. (1) previously dev*ed to public service (line 43), or (2) other i j_ 3. Furnish particulars (details) concerning sales, purchases, or nonutility property dine 44).
- ,trarnfors of Nonutility Property during the year.
Balance at Purchases, Sales, Balance at Line Description and Location Beginning of Year Transfers, etc. End of Year No. (d) I la) Ibl (c) f 1 I 2
! 3 , 4 5
6 7 8 9 10 11 12 , i 13
! 14 I
15 16 17 l 18 INTENTIONALLY liLANK 19 20 21 22 23 24 25 26 6 27 i 28
, 29 ! 30
- 31 32 33 34 36 36 I
37
! 38
( l 39 40 41 i 42 l 43 Minor item Previously Devoted to Public Service 44 Minor.ltems - Other Nonutility Property 45 TOTAL Page 215 Next Page is 217 FERC FORM NO I 1 REVISED 12 81)
BLANK PAGE (Next Page is 217) 1 l 1 i
O Pesmo of Responorat Th,s Report is: Date of Report Yew of Report llc 11) @ An Original (Mo, De, Yrl O VEGE,T (2) O A Re utwression o=c. 31,1984
-I O INVESTMENT IN SUBSIDIARY COMPANIES (Account 123.1) 3 1. Report below investments in Account 123.1, in- whether the advance is a note or open account. List a footnote and give name of Commission, date of
} westment in Subsidiary Corrqpanies. each note giving date of issuance, maturity date, and authorization, and case or docket number. C 2. Provide a subheading for each company and list specifying whether note is a renewal. 6. Report column (f) interest and dividend revenues L thereunder the information called for below. Sub-total 3. Report separately the equity in undistnbuted sub- from investments, including such revenues from by company and give a total in columns (e), (f), (g) and sidiary earnegs since acquisition. The total in column securities disposed of during the year. h< th). (el should equal the amount entered for Account 418.1. 7. In column th), report for each investment disposed (a) Investment in Securmes - List and desenbe 4. For any securmes, notes, or accounts that were of during the year, the gain or loss represented by the us each secunty owned. For bonds give also pnncipal pledged, designate such securities, notes, or accounts difference between cost of the investment (or the other U amount, date of issue, maturity, and interest rate. in a footnote, and state the name of pledgee and pur- amount at which carried in the books of account if dif- - (b) Investment Advances - Report separately the pose of the pledge. forent from cost) and the selling price thereof, not in- [ amounts of loans or investment advances which are 5. If Co.....;.i,;v6 approval was required for any ad- ciuding interest adjustment includible in column (f). - sub:ect to repeymer t, but wtuch are not subeect to cur- vence made or security acquired, designate such fact in 8. Report on line 23, column (a) the total cost of Ac-rent settlement. With respect to each advance show count 123.1. Line Date Date of Revenues Descrcoon of inweetment f"'*****"' 8"D' d Y Investment et from investrnent Me for Yer Begmning of Year Eemings for Year End of Year Disposed of (si (bl (cl (d) (el (t) (g) (h) I 1 E 2 S 3 4 5 6 7 8 9 10 11 12 INTENTIONALL Y BLANK 13 14 15 16 17 18 19 20 21 9 22 23 l Total Cost of Account 1231 S l TOTAL
Name of Respondent TNs Report is: Date af Report Yeer tf Report ' (1) QAn Originel (Mo, De, Yr) , l (2) O A Resutmssian Dec.31,198k. MATERIALS AND SUPPLIES !
- 1. For Account 154, report the amount of plant materials and 2. Give an explanation of important inventory adjustments operating supplies under the primary functional during year (on a supplemental page) showing general classes of classifications as indicated in column (a); estimates of amounts material and supplies and the various accounts (operating ex.
by function are acceptable. In column (d), designate the depart. pense, clearing accounts, plant, etc.) affected-debited or ment or departments which use the class of material. credited. Show separately debits or credits to stores expense. clearing,if applicable. Balance mnt or Bolence une Account Beginning of *** ""* End of Year No. Year Which Use Material la) (b) (c) Id) 1 Fuel Stock (Account 151) 2 Fuel Stock Expenses Undistributed (Account 152) 3 Residuals and Extracted Products (Account 153) 4 Plant Materials and Operating Supplies (Account 154) 5 Assigned to - Construction (Estimated) 6 Assigned to - Operatinns and Maintenance 7 Production Plant (Estimated) 8 Transmission Plant (Estimated) 9 Distribution Plant (Estimated) 10 Assigned to - Other 11 TOTAL Account 154 (Enter Totaloflines 5 thru 101 12 Merchandise (Account 155) 13 Other Materials and Supplies (Account 156) 14 Nuclear Materials Held for Sale (Account 157) (Not applicable to Gas Utilities) 15 Stores Expense Undistnbuted (Account 163) 16 17 18 19 20 TOTAL Materials and Supplies (Per Balance Sheet) INTENTIONALLY BLANK r
- ERC FORM NO.1 IREVISED 12 82p Page 218 Nov Page is 220
. _ _ _ _ _ _ _ ._. . _ . . ~ _ _ _ - . . _ - _ . -
C m BLANK PAGE (Next Page is 220)
/
Name of Roepondent Th') Report is: ' Datief Report Year of Report (1) E An Original (Mo, Da, Yr)
- VEG&T (21 O A Re.uomission Dec.31,19 E EXTRAORDINARY PROPERTY LOSSES (Account 182.1)
Description of Extraordinary Loss WRITTEN OFF DURING l Line (include in the duecription the dote oflose. ^ *"***
^ ' *d No. the date of Commission authorization to use (Account 182.1 nu;j";,,,
g Account Amount e and period of amortiserion (mo, yr to me, yr).) Charged la) (b) (c) (d) (e) (f) 1 Pilgrim 2 - Abandoned Generation 2 I 059,037 35,666 35,666 1,023,371 Project 407.1 3 4 5 6 7 8 9 10 11 . 12 13 14 15 16 17 18 19 20 TOTAL 059.037 35,666 35,666 1,023,371 UNRECOVERED PLANT AND REGULATORY STUDY COSTS (ACCOUNT 182.2) Description of Unrecovered Plant and Regulatory Study Costs (include in the description of costs, the date of Total Amount Costs Recognized WRITTEN OFF DURING YEAR ** *' \
}
Line No. Comminston authorization to use Account 182.2, andperiod of During Account of amortisation (mo, yr to me, yr.)) Charges Year * ***' Charged
. (a) (bl (c) id) (e) (f) 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 5 42 43 44 45 46 47 48 49 50 51 TOTAL ,
FERC FORM NO.1 (REVISED 12 84) Page 220 Next Page is 223
A. Nome of Respondent This Report is: D:te af R; port Year of Report (1) @ An Originat (Mo, Da, Yr) VEG&T (2) O A Resubmission Dec.31,1 E MISCELLANEOUS DEFERRED DEBITS (Account 186)
- 1. Report below the particulars (details) called for concerning 3. Minor items (1% of the Balance at End of Year for Account miscellaneous deferred debits. 186 or amounts less than $50,000, whichever is less) may be
- 2. For any deferred debit being amortized, show period of grouped by classes, amortization in column (a).
CREDITS Line Description of Miscellaneous Balance at Balance at 0 *' Amount End of Year No. Deferred Debit Beginning of Year Account Charged fa) (b) ici (di le) til 1 Misc. Def. Dr.-Start Up 11,973 930.2 4,200 7,773 2 Transfer Ownership-Pilgrim 2 6,747 5,042 182.1 11,789 3 Transfer Ownership-Millstone 3 6,505 4,005 107.603 10,510 4 Transfer Ownership-Seabrooh 6,877 5,738 12,615 107.604 5 80,408 38,596 41,812 VT-Yankee Downtime-Dec.1980 -- 558 6 Assume BC8-BA4 Loans 2,616 930.2 5,733 3.117 7 Acquire A-8 Loan 28,961 21.157 50,118 8 VT-Yankee Spring'83 Capaci .y 166,389 558 62,400 103,989 9 Dkt.4936-investigate M3 2,194 10 N. Hartland Alternative Fin. 1,836 11 12 13 14 15 16 17 18 19 2C 21 22 23 74 25
?G 27 28 29 ,
30 31 32 33 34 35 36 37 38 l 40 41 42 43 44 ( 45 46 47 Misc. Work in Progress 48 DEFERRED REGULATORY COMMIS StON tXPtNStS ISeepaars 35035Il 40 TOTAL 310.977 207.722 FERC FOR%l NO, I (REVISED 12 M1) Page 223
Nerne of Respondent This Report 1s: Date of Report Year cf Report (1) @ Original (Mo,De,Yr) , VEGr,T (2) OA Rahinion Dec. 31,19 81L ACCUMULATED DEFERRED INCOME TAXES (Account 190)
- 1. Report the information called for below concerning the 3. If more space is needed, use separate pages as recuired. )
respondent's accounting for deferred incorne taxes. Aln the space provided below, identify by amount and classifica-
- 2. At Other (Specify), include deferrais relating to other in- tion, significant items for which deferred taxes are being provided.
come and deductions. Indicate insegruficant amounts under Other. Balance at
" 0 o og y,"N", En of ear tal (b) fel 1 Electric 2
3 4 5 6 7 Other 8 TOTAL Eiectric (Enter Totaloflines 2 thru 7) 9 Gas 10 11 12-13 14 15 Other 16 TOTAL Gas (Enter Totni of lines 10 thru 15) 17 Other (Specify) 18 TOTAL ( Account 190) (Enter Total of lines 8,16 and 17) NOTES INTENTIONALLY BLANK I;ERC FOlet NO, I (REVISED 12 83) Page 224 Nent Page is 250
r t BLANK PAGE (Next Page is 250)
g herre ce Responesat This Report 1; Date of Report Year of Report
!'i tilb Or.pnes (Geo. De. Yr) 2 VEGr.T m OA Re uewmsmaa Dec.31.118 L d
- t CAPITAL STOCK (Accounts 201 and 2041 g 1. Report below the parrrutars (detads) caBed for the 1&K report and this report are compatde. dudends are cumulative or noncumulative.
j ww.-g comnson and preferred stock at end of year, 2. Entries in column (b) should represent the number 5. State in a footnote if any capital stock which has p destegusshing separate senes of any wer.eral class. Show separate totals for common and preferred stock. of shares authonzod by the artcles of incorporation as been nominally issued is nommeNy outstandmg at end _ amended to end of year. of year. - O mformation to meet the stock exchange reportog re- 3. Give partatars (details) we. .g shares of any 6. Give particulars (details) in column (a) of any 3 querement outhned a column tal is avadable from the SEC la K Report Form fJang. a specific reference to the class and series of stock authorized to be issued by a nommally assued capital stock, reacquired stock, or , regulatory comms==<wn which have not yet been issued. stock in sinking and other funds which is pledged, j report form (i e. year and company trie) may be 4. The identifcation of each class of preferred stock stating name of pledgee and purpose of pledge reported in casumn (a) provided the fiscal years for both should show the dnndend rate and whether the OUTSTANDING PER HELD Sy RESPONDENT g g g ,3 Cas ,7 g AS REACQUIRED STOCK IN SINKING AND C *** *'"". s ,na nts er 1.1 1 Account 217) OTHER FUNDS No Name ce Seacs Enctwnge Authonred Value tw Charter Per Share Shares Amount Shares Cost Shares Amount tal (bl fel Idl let til Igl (ht til til i 2 3 2 5 g y 6 3 7 8 9 10 11 12 13 14 INTENTl0 4 ALLY BLANK 15 16 17 . 18 13 20 21 22 23 24 25 26 27 m. e
~
Nome cf Respondent Thee itsoort is: Detocf Report Year s.f Report (ti glvu orielnel (Mo, De, Yr) VEG&T Dec.31,t98k. (21 OA moeubmienon CAPITAL STOCK SUBSCRIBED, CAPITAL STOCK LIABILITY FOR CONVERSION, PREMlUM ON CAPITAL STOCK, AND INSTALLMENTS RECEIVED ON CAPITAL STOCK (Accounts 202 and 205,203 and 206',207,212) 1, Show for each of the above accounto the amounto applying 203, Common Stock Liability for Conversion, or Account 206, to each class and series of capital stock, Preferred Stock Liebility for Conversion at the end of the year,
- 2. For Account 202, Common Stock Subscribed, and Account 4. For Premium on Account 207, CapitalStock, designate with 205, Pro / erred Stock Subsen6ed, show the subscription price an asterisk any amounto representing the excess of consideration and the belence due on each close at the end of year, received over stated values of stocks without par value.
- 3. Describe in a footnote the agreement and treneoctions under which a conversion hebdtty emeted under Account une Name of Account and Description of item Number of Sharoe Amount I No. fel (bl feb 1
. 2 ; 3 l 4 l 5 I 6 7
8 9
; 10 11 12 13 14 lNTENTIONALLY BLANK 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 36 36 37 38 39 40 41 42 43 44 45 40 TOTAL FERC FORM NO, I lMEVISED 12 M1) Page 251
Nome of Respondent This Report is: Date of Report Yeer of Report , i (1) QAn Original (Mo,De Yr) VEG&T (2) O A Re.ubme= ion Dec. 31.198A-OTHER PAID IN CAPITAL (Accounts 208 211, inc.) Report below the balance at the end of the year and the infor- changes which gave rise to amounts reported under this caption motion specified below for the respective other paid.in capital ac- including identification with the ciass and series of stock to which counts. Provide a subheading for sech account and show a total related. for the account, as well as total of all accounts for reconciliation (c) Gain on Resale or Cance//ation o/ Reacquired Capital Stock with balance sheet, page 112. Add more columns for any account (Account 210)-Report balance at beginning of year, credits, if deemed necessary. Explain changes made in any account dur- debits, and balance at and of year with a designation of the ing the year and give the accounting entries effecting such nature of each credit and debit identified by the class and series of change, stock to which related. (a) Donations Received from Stockholders (Account 200)- (d) Misce #eneous Pa/d /n Capital (Account 211)-Classify State amount and give brief cwplination of the origin and purpose amounts included in this account according to captions which, of each donation. together with brief explanations, disclose the general nature of (b) Reduction in Per or Stated Value o/ Capital Stock ( Account the transactions which gave rise to the reported amounts. 209)-State amount and give brief explanation of the capital Line item Amount No. fel (bl I Washington Electric Cooperative, Inc. Membership Fee 5 00 2 HELCO Membership Fee 5 00 3 4 5 . 6 7 i 8 9 10 11 12 13 14 15 ! 16 17 18 19 20 21 22 23 24 25 20 21 28 29 30 Ji 32 33 34 35 l 30 l 31 0 _39 40 TOTAL 10.00 1:1 RC i OR\1 NO.1 (RiiVIStiD I 2 Mll Page 252
1! e Nomeof Respondent This Report le: Dete af Report Yeer af Report (tI g}An origines (Mo, De, Yr)
!~ VECsT 121 OA Re ubme= ion Dec. 31, t 98 DISCOUNT ON CAPITAL STOCK (Account 213)
- 1. Report the belance at end of year of discount on capital respect to any class or series of stock, attach a statement giving stock for each cleos and series of capital stock, particulars (details) of the change. State the reason for any
, 2. If any change occurred during the year in the balance with charge-off during the year and specify the amount charged. ) Lin. Bolence et t pgo, Close and Series of Stock End of Year le) (bl 1
E l t 3 4
, 5 6
l 7 - 8 f 9 lNTENTIONALLY BLANK 12 13 14 15 l 18 l 17 18 j 19 20 21 TOTAL CAPITAL STOCK EXPENSE (Aement 214)
, 1, floport the beience et end of year of capitel stock empenses for each tc*esy cleos or series of stock, ettsch a statement giving porticulere eless and eseu of cepetal stock. (d ete.lel of the change. State the reason for any charge off of capital
- 2. If any che9ge occurred dur6ng the yeer in the belance with roepect stock empense and specify the account charged.
Line Bolence et peo. Close end Serire of Stock End of Year tal (b) 1 2 3 4 5 6 7 a INTENTIONALLY BLANK 9 l 10 11 12 13 14
^
15 16 (s 17 18 l 19 20 21 [ . 22 TOTAL FERC FORM No, I (REVl5El) 12.NII b8 Nest Pege is 264
1 osse se assert veer es neport 4 same se n e s a ns Te nues,s as:
- m aA. o, line. ca. vri
} VEG&T us Ela ' __ r one. m. isk '
j LOpeG TERed DEST (Accounts 221. 222,223. and 224)
*. 1 Aaport by hetence sheet me account perscaders o. ser us s ses == e.e.a s.es m ta n. a s m.e 13. If the seependent has pledged ag of as long-term ' imme no concomme inne-seem done = chased in Ac- 0'" '"."r./.*::""*;.L'"" "L."*;".'.a "~'.".E* C d'*' " ~ "" **" d** ""d ia * '""'""
mdanno nemo of me piedsee and awpose of w'-
- - . <*>='=>==-- - - * - - =
2 c.,,es
,,,,,,, 2,2i. so.ide. m. ,. W marids. 223. Ad-asid 22s. oshn * = - * -**=**-*- piedse.
Teser Dett. 14. if theseapondenthasanylong-termdebtsecuness
- L73,, ,,,,,,,, gg, ,,, ,,,, ;,,,,,, gi,, w s. Furneh in a fasenses paracutese lesental secaning which home been nonensey issued and are nonenney
- aumenmeon numeers and ,,,,,, me areennent of unemermoed dont emeen=. - or aumemunne a and a year, emocnho such escuanos = a e -
atacount asesamend umidi issues sedsomed afunne the e 3. For amumed by 3 mapandant. 6 in year. Asso, give in a tesenees sie almas of the Comnee- footnose'esseet
- 15. N in empense was incuned dunne the year on
; co8wei tal me name of use moung company as W as a men's aushonenei:m af suessient asher then as speaAnd agescngeon cd me m any cedgemons sensed or suecausred besose end of year, e by the Undonn Synessa of Accounes. inciude such inesseet empense in column til. Emplein in a 3 4. For ashsences from W Compenses. report 10. idenefy espasseety undeposed arrounes emplicatte loosnose any agNorence besween the total of column (il - sepammes, amences on noems arms ammences on open ac- no innses wenich wese sedeemed in prior years. ' and me seem of Account 427, hiseroer on Lone-Term counes. Demonese demonal noses as such. Include m 11. Eglesi any asemies and esemes asher then amormee- De6t and Account 4M). Inserset on Doet so Associesed cohann tai names of compeiuss 9mm =hich sien me.ed se Acomune 4an. Amerasseen of Doet as- ca.,en.s.
admences === secound- comtamt Egenen, or csedged se Account 439. Amer- 16. Gius paraculars idasetsi concomme any long-term 5 For secessere" cereEcases. sheer .are column tal the assessa of Musenose on Dett - Oudr. debt authonaed by a reguistory _ ' . but not yet nesses of sue court and done of court esdor under wisch 12. In a suppiamonged senemment. - espionatory per- mound. such caresicanes m i== -d scuaws edgenRW ser *~-- 2E*and 2as of not
- s. in coauen iba sham em pancoes amount of heads conness emne me year. mah suspect se sene-esen ad.
or enhor none asan debe anonesy - wnces. snow ser seen osameny: sel annapsi amenced
- 7. In coeumn (cl sheer the espones, pseneurn or h asunne year, lhi inement added as psinceal amount, and coun wah mes c so em amown of hands or omer ses pancias sepsis dudas year. Ghe Commemon y none-sonn mean onenemy neued. aumaneseen nuneem and deses.
] AaAORTIZATIOft PER000 t l 0"****"e u ,,,,,,,,, (Toies amount ones one s e ne Oms mmen. cogen none Pnnce. TmdEgene. Dom
- o ,,, .
-s=r inuma for Year " tre,es. .e.e.3, ca Amewe or rie=== or se Does Faun Dom To weemut meucson Annount aume,.ame.am.nors eas m. ems ones is==ed oncount nam y ,,,,,,,,,,,id by mapendent) cas t*I tcI id' !*' 'N '*' N 3
REA - BE4 Loan 500,000 485,671 "'24,493 2 3 REA - BA4 Loan 15,816,000 14,051,403 702,453 o 5 FFB - TAI 13,406,000 9,131,000 582,728 G 7 FFB - SCS/A-8 11,920,380 11,215,380 946,747 s 9 10 11 12 13 , 14 15 ts ,
O - anyme se h
% Time Mesort es: ones of Aeoart Year of Report -
z m Ean ow two. De. vel . VEGET o= Q (25 OA mamma ose.31.is 84 (- LONG-TERM DEBT (Accounts 221. 222,223. at 224) (Continued) 'z # i At40RT12ATION PEftOO Outstand ng O Cass we sees of Owen. Pnncoaf Totat Espense, pere ' "' '_ i
, , , ,_, De=
D*'"" outstand.as interest vor Yes a.o . i.e es o.tn issues o ou s u.eunty D*" T* d"*' * ^"*""' ,z iP sisue ".m"'ou'*nts e n.8" by .e@,' ..tl ,$ tas te ks ses tes in ter tu to 'N n 18 lU 18
- 5 20 21 22 23 24 l 25 26 21 1 I' 28
'E ' 29 30 l 31 32 33 34 35 36 37 38 3e 40 C1 42 43 44 45 48 C7 4e es TOTAL b1_642_180 14.883.454 2.256.421
l , 'sname esstengenneo.: The Rooert t;: Dese et Ameest Year of Resort l t I san Onenes ites. Os. Yrl VEGrT m OA w D=c 2.18h
. TAXES ACCRUED. PREPAID AND CHARGED DURING YEAR
! - 1 Gae sartcsAars (deemis3 cd the cornemed prepad 2. Inchde on this page. tases pad dunng the year chargeable to current year, and (c) taxes paid and . . arms accrued tas -ces and shoes the tcsat tames and charged dwect to final arm =us. (not charged to charged direct to operations or accounts other then ac-charged m operacons and other arm **s durmg the prged or accrued t===1. Enter the amounts in both crued and prepad tan accounts. l year. Do nos M* gascene and other sates tasas colurnns idi and tel. The botonong of this page is not 4. List the aggregase of each kind of tax in auch man-
' - whch haue twen Charged to the accounts to mench the aMected by the inctueen of these tones. ner that the total tan for each State and subdnneon can ; samed asasenas e charged. If the actal or estanaaed 3. InchrJe in column (d) tames charged dunne the reeddy be ascertaned.
l .. amoun:s ci such tames are knoemt. shour te amounts in year, tames charged to operaeons and other accounts i - o sooencea and oesenate whether estanaged or actual through (a) accruals credoed to temos accrued. (b) I i amour:ts. amounts credoed to proportons of prepaul tamos (Continued on page 250.)
. SAUusCE AT SEQ 80epsG OF YEAR SALANCE AT END OF YEAA M' "
e w w d Tan Tames Prepass Tames Accrued h #N N Year
" 88 ta-it 2NI ! Accrued Tames D6amg Year
- g.es tas ict rdt fel til 190 fM l 1 Gross Revenue - State of Vercio st -- --
9 9 -- -- -- 2 3 4 r 5 l 0
, 7 I O O
10 11 12 13 13 15 13
. 17 18 13 20 21 22 23 24 l 25 26 21 h 28 TOTAL -- -- 9 e -- -- -- -
O Y
y aw=.e a a a a. Tw n.eart s : o oe neeert voor ce neport z til EIAa or e, ass tems.om. Yrs . VEG&T
] (21 OA n===== m a osc.31.isS4-O TAXES ACCRUED. PREPAID AND CHARGEC DURING YEAR (Contmuod) x % 5. Many ses fenciadr Federarandsseseincome semesJ 7. Do not inchade on this page entnes with respect to 4081,409.1. 6.2 and 6.2 under other accounts in z cowrs more mNan one year, sAcour tne egused mrame- deferred ecome temos or tames camarted through payroII column (1). For tamos charged to other accounts or util-O son separase+ rer esca con year. adenerv eig the year a w rmans or othermane pending transmrttat of such ity plant, show the number of the appropnate belance L cosasen fat tamos to the tomang authoney. sheet arramt. plant account or subaccount. - E Eneer as M a of the accrued and proped 8. Enter -mes to whch temos charged were distri- 9. For any tan apportened to more than one utility X tas -mts et cohamn (f) and eueden each arjustment bused in columns (i) thru (1). In column (i). report the department or account. state in a footnote the basis t"' en a focenose. C ;- detet a4usements by peren-amounts charged to Aermets 415.1 and 6.1 for Elec- (neceserty) of apportioning such tax.
I re Wienes. tric Department orW. Group the amounts charged to C w h ceSTRIBUT30se OF TAMES CHANGED f$nour areevy assymrenent senew e and secount cAerged A
- 3 u s ce.c t.o A+ e-. se poet (Accousie act1 Innsas not. Earnegs estin (Acconce assJa IAccoune 43es na re ens III 1
2 i 3 5 0 7 8 0 to 11 INTENTIONALLY BLANK 12 13 1') l 15 16 17 18 19 20 21 22 Y e 24 . 25 I's 26
= 11 E 28 TOTAL
i l l . : f I 1 I
)
1 BLANK PAGE (Next Page is 260 t l k l l l l t 1 I t
f: TNe Repert is: Dete of Report Year cf Resort Nome of Rossendent (1) CAn Onsinal (Mo, Oe, Yr) VEG&T tal OA Resulmees'ea oss. 31.1864 RECONCILIATION OF REPOHTED NET INCOME WITH TAXA 8LE INCOME FOR FEDERAL INCOME TAXES
- 1. Report the reconciliation of reported not income for the year tenable not income os if a esperate return were to be filed, in-with tenable income used in computing Federal income tan ac- dicating, however, intercompany amounts to be ehminated in cruels and show computation of such tan accruals include in the such a coneohdoted return. State names of group members, tan reconciliation, as for as practicaulo, the some detail as furnished seeigned to each group member, and beeis of allocation, seeign-on Schedule M 1 of the tea retum for the year. Submit a recon- mont, or sharing of the consolidetod tax among the group ciliation even though there is no tenable income for the year. In- members.
dicate cleerfy the nature of each reconciling amount. 3. A substitute page, designed to meet a particular need of a
- 2. If the utthey is a member of a group which files a con. company, may be uesd as long as the data is concetent and solidated Federal tan return, reconcile reported not income with meets the requirements of the above instructions.
LI"' Particulars (Deteelg Amount N' " thi tes 1 Net income for the Year (Page 117)
- i8i:i 2 Reconciling items for the Year 3
4 Tanable income Not Reported on Books 6 6 7 8 ,, g Deductions Recorded on Books Not Deducted for Return
- 10
.11 12 13 14 Income Recorded on Books Not included in Return 15 16 17 15 Ig Deductions on Return Not Charmed Aasmet took income 20 2t 22 23 24 29 T
27 Federal Tae Net income 28 Show Computation of Tan: 29 30 lNTENil0NALLY BLANK 31
. 32 33 34 36 36 31 38 30
.( 40 41 42 43 44 l'LRC 1 ORM NO, I (MLYl5ED l 2 Page 281 Neet Paqp to W
-________-_____________-__-__N1)
y -
.; sw= es N- _ _ N aseen a osse e neomrt veer m nee.n z m 3A.cv s man. on. ves VEGrT
] m GA h M1k Q ACCUMULATED DEFERRED ENVESTMENT TAX CREDITS (Armant 256) 2 Report tetown r.f armacon #m so Account 2E nons by ue6ty and nonuiney operanens. Emplan by balance shouwn a column (gL irw* area in column til the j Where w. seyegaee tihe batances and transac- footnote any correcton a4usements to the account average penod owr wohich the tan credes are amoreund
-C
,,, h% no
_~ w um Se.ance .a Cunene years income
- 4,, w
_ ama 9 ~ _1 m 889* 9 ^+" ~ E.nd of Year of Asocamon d *'Y"' Arr== ha. Amours Accoune ha Arnoune 3"*8"' 2 w eso oes w res ers tes ans 1,s C 3 Occtre uta.tv - 2 2 3*.
'*- 3 4%
h 4 h 5 10% G 7 8 TOTAL 9 Otte (Lar sepsardy sst srson, ,
.1* 45. ?;.101.anct TOTAL) - ~- 55 5 2* 10 n
12 13 14 15 13 11 I3 13 lNT ENTIONALLY SLANK 23 21 22 23 24 25 26 21
$ 28 x 29 5 30 - 31 y
32 Y a
s .
.t BLANK PAGE (Next Page is 266) l l
l l I
Nome of Respondent ' This Report is: D;te of Report Year of Report (1) Q An Originot (Mo, De, Yr) VEG&T t- (2) O A Resubmission Dec.31,1 d OTHER DEFERRED CREDITS (Accou..t 253)
- 1. Report below the particulars (details) called for concerning 3. Minor items (5% of the Balance End of Year for Account cther deferred credits. 253 or amounts less than $10,000, whichever is greater) may be
- 2. For any deferred credit being amortized, show the period of grouped by classes.
amortization. I- DEBITS Line Description of Other Balance at No. Deferred Credit of Y Am unt End of Year Acc t (a) (bl (cf (d) fel til 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 INTENTI )NALLY BLANK 21 22 23 24 25 26 J27 ( 'i 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46
-47 TOTAL .FERC FORN! NO.1 (REVISED 12-81i Page 266 Next Page is 268
e BLANK PAGE (Next Page is 268)
Nome cf Respondent This Report is: Date cf Report Yeer cf Report (1) EAn Onginal (Mo, D3, Yr) . VEGr,T 121 O A Resubmission Dec.31,1 E ACCUMULATED DEFERRED INCOT.1E TAXES-ACCELERATED AMORTIZATION PROPERTY (Account 281)
- 1. Report the information called for below concerning the amortizable property.
respondent's accounting for deferred income taxes relating to 2. For Other (Specify), include deferrals relating to other CHANGES DURING YEAR Balance at Amounts Amounts N s. Accourt Beginning Debited Credited of Yeaf (Account 410.1) (Account 411.1) ta) Ibi (c) id) 1 Accelerated Amortization (Account 281) 2 Electric 3 Defense Facilities 4 Pollution Control Facilities 5 Other 6 7 8 TOTAL Electric (Enter Total of lines 3 thru 7) 9 Gas 10 Defense Facilities 11 Follution Control Facilities 12 Other 13 14 15 TOTAL Gas (Enter Total oflines 10 thru 14) 16 Other (Specify) 17 i TOTA L ( Account 281) (Enter Total of B,15 and 16) 18 Classification of TOTAL 19 Federal Income Tax 20 State income Tax 21 Local Income Tax NOTES INTENTIONALLY BLANK FERC FOR31 NO.1 (REVISED 12-81) Page 268
! . Nome of Respondent Th's Report is: D2t3(f Report Year of Report t (1) dan Onginal (Mo, Da, Yr)
VEGr,T (2) OA Resubmission Dec. 31,198 I ACCUMULATED DEFERRED INCOME TAXES-ACCELERATED AMORTIZATION PROPERTY (Account 281) (Continued) income and deductions.
- 3. Use separate pages as required.
i CHANGES DURING YEAR ADJUSTMENTS
- Amounts Amounts Debits Credits Balance at Line Debited Credited I End of Year No.
' (Account 410.2) (Account 411.2) Acct. No. . Amount Acct. No. Amount , te) (t) Igl th) foi fil (k)
- 1 2
1 3 4 5 6 7 8 9 10 11 12 13 14 15
- 18 17
-
- E;i 18 19
} i 20 21 INTENTIONALLY BLANK FERC FOR.\1 NO.1 ( REVISED 12-81) Page 269
Nomeef Respondent This Report is: . Dato cf Report Year of Report (1) san Orignal (Mo, De, Yr)
- VEG&T (2) OA Resubrnizion Dec. 31,19M ACCUMULATED DEFERRED INCOME TAXES-OTHER PROPERTY (Account 282) .
- 1. Report the information called for below concerning the property not subject to accelerated amortization.
respondent's accounting for deferred income taxes relating to
- 2. For Other (Specifyl, include deferrals relating to other CHANGES DURING YEAR g Balance at N Account Subdivisions Beginn g A s. Arnoun fal (Account 410.11 (Account 411.1) thi fel (dl 1 Account 282 2 Electric 3 Gas 4 Other (Define) 5 TOTAL (Enter Totaloflines 2 thru 4) 6 Other (Sn~-ify]
7 8 9 TOTAL Account 282 (Enter Total oflines 5 thru 8) T 10 Classification of TOTAL 11 Federal income Tax 12 State income Tax 13 Local income Tax NOTES INTENTIONALLY BLANK
)
FERC FORM NO. I 1 REVISED 12-81) Page 270
Nome af Respondent This Report is: Date 6f Report Year cf Report (1lQAn Originet (Mo, De, Yr) VEGt,T Dec. 31,19 AlL (2) OA Resubmision .,_ ACCUMULATED DEFERRED INCOME TAXES-OTHER PROERTY (Aemunt 282) (Continued) income and deductions.
- 3. Use separate pages as required.
CHANGES DURING YEAR ADJUSTMENTS Debits Credits Amounts Amounts Balance at Line Debited Credited **' Acct. No. Amount (Account 410.2) Acct. No. Amount (Account 411.2) . (el (1) (g) th) fil fil (ki 8 43 1 2 3 4-5 6 7 8 9 10 11 12 13 NOTES (Continued) INTENTIONALLY BLANK FERC FORM NO.1 (REVISED 12-8:) Page 271
Nome tf Respondent This Report is: Dato cf Report Year cf Report (f1 EAn Original (Mo, Da Yr) VEGE,T (21 O A Re.ubmission Dec.31.is E ACCUMULATED DEFERRED INCOME TAXES-OTHER (Account 283)
- 1. Report the information called for below concerning the amounts recorded in Account 283.
respondent's accounting for deferred income taxes relating to 2. For Other (Specify/, include deferrals relating t.o oth_er CHANGES DURING YEAR b"
- Une Amounts Debited Amounts Credited Account Subdivisions Beginning (Account 410.1) (Account 411.1) of Year fal (b) (c) id) 1 Account 283 2 Electric 3
4 5 6 7 8 Other 9 TOTAL Electric (Enter Total of lines 2 thru 8) 10 Gas 11 12 13 14 15 16 Other 17 TOTAL Gas (Enter Totsioflines 10 thru 16) 18 Other (Specify) 19 TOTAL Account 283 (Enter Total oflines 9,17 and 18) r 20 Classification of TOTAL 21 Federal Income Tax 22 State income Tax 23 Local income Tax NOTES INTENTIONALLY BLANK i l l I FERC FORM NO.1 (REVISED 12-83) Page 272
e-
~ ~' ~ w~ e.. ~;,
edeme ofRespondent This Report 1s: Dits cf Report Year of R: port
, (1) @ An Original (Mo, D;, Yrl VEGr,T (2) O A Resubmission Dec. 31.196$L
,_ ACCUMULATED DEFERRED INCOME TAXES-OTHER (Account 283) (Continued) income and rieductions. Jr3 le ctode arnounts reta'> m iu .469ean' ~"s under Otner Provide si the space below expannations for pages 272 and 4. U.e separt te pages as required AL JUSTMENTS Debits Credits Amounts Debited Amounts Credited Balance at Line (Account 410.2) (Account 411.2) Acct. No. Amount Acct. No.
Amount fel (fl (gl th} fil til Iki 1 2 3 4 5 6 l 7 8
', 9
; 10 l ._ 11 12 13 14 15 16 17 18 i
19
- 3::: 20
'; 21 22 23 NOTES (Continued)
INTENTIONALLY BLANK l t L l. I i I l 9 FERC FORM NO. I (REVISED 12-83) Page 273 Next Page is 301 i __ _ _ _ . . _. _b - - - _ _ .
5 . BLANK PAGE (Next Page is 301)
~ '
Name cf Rw4.nt This Report is: Date of Report Year of Report . Al (1) @ An Original (Mo, Da. Yr) VEGr,T (2) O A Resubminion Dec. 31,19 Ria O ELECTRIC OPERATING REVENUES (Account 400)
}2 1. Report below operating revenues for each pre-scribed account, and manufactured gas revenues in means the average of twelve figures at the close of each month.
mand. (See Account 442 of the Uniform System of Accounts. Explain basis of classification in a O total. 3. If previous year (columns (c), (e), and (g)), are footnote.)
- 2. Report number of customers, columns (f) and n t derived from previously reported figures, explain 5. See page 108, important Changes During Year, any inconsistencies in a footnote. for ,mportant i new territory added and important rate g (g), on the basis of meters,in addition to the number
- 4. Commercial and Industrial Sales, Acmunt 442, increases or decreases.
g number of flat rate accounts;exmpt that where sepe- may be classified according to the basis of classifica- 6. For lines 2,4,5, and 6, see page 304 for amounts rei rate meter readings are added for billing purposes, tion (Small or Commercial, and Large or industrial) relating to unbilled revenue by accounts. h one customer should be counted for ea& group of regularly used by the respondent if such basis of clas. 7. Include unmetered sales. Provide details of such meters added The average number of customers sification is not generally greater than 1000 Kw of de. sales in a footnote. OPERATING REVENUES MEGAWATT HOURS SOLD AVG NO. OF CUSTOMERS PER MONTH w Line Title of Account 0-Amount for gy Amount for Number for Number for Previous Yeer Previous Year Year Previous Year (al (b) (c) (d) (e) (f) (91 1 Sales of Electricity 2 (440) Residential Sales 3 (442) Commercial and Industrial Sales
' 4 Small (or Commercial) (See Instr. 41 5 Large (or Industrial) (See Instr. 4)
'8" 6 (444) Public Street and Highway Lighting 7 (445) Other Sales to Public Authorities 8 (446) Sales to Railroads and Railways 9 (448) Interdepartmental Sales 10 TOTAL Sales to Ultimate Consumers 11 (447) Sales for Resale 6.700.594 5.655.323 183,165 161,332 3 2 12 TOTALSales of Electricity 6.700.594
- 183,165**
13 5.655.321 161,332 3 2 (Less)(449.1) Provision for Rate Refunds -- -- 14 TOTAL Reve. Net of Prov. for Refunds 6.700.594 5.655.323 15 Other Operating Revenues 16 (450) Forfeited Discounts 17
- Includes $ unbilled revenues.
(451) Miscellaneous Servim Revenues 18 (453) Sales of Water and Water Power 19 ** Includes MWH relating to unbilled revenues. (454) Rent from Electric Property 20 (455) Interdepartmental Rents 21 (456) Other Electric Revenues 2 625 2.275 g 22 5 'eg
*3 24
, ;;- 25 ' jal 26 TOTAL Other Operating Revenues 2,275
- 625 27 TOTAL Electric Operating Revenues 6,701,219 5.657.598
3 e Nomecf Respondent This Report is: Dete cf Report Year af Report .
- 11) WAn orisines IMo, De, Yr)
VEGST l2s OA Resubminion Dec. 31,19Sk. SALES OF ELECTRICITY BY RATE SCHEDULES g
- 1. Report below for each rate schedule in effect during the rate schedule in the same revenue account classsfication (such as /
year the k Wh of alectricity sold, revenue, average number of a general residential schedule and an off peak water heating customers, averegt k Wh per customer, and average revenue per schedule), the entries in column (d) for the special schedule
- k Wh, excluding data for Sales for Rosale is reported on pages should denote the duplication in number of reported customers.
310-311. 4. The average number of customers should be the number of
- 2. Provide a subheading and total for each preecnbod bills rendered during the year divided by the number of billing operating revenue account in the sequence followed in " Electric penods during the year (12 if all billings are made monthly).
Operating Revenues," page 301. If the sales under any rate 5. For any rate schedule having a fuel adjustment clause state schedule are classified in more then one revenue account, list the in a footnote the estwnsted additional revenue billed pursuant rate schedule and sales data under each apphcable revenue ac- thereto. count subheoding 6. Report amount of unbilled revenue as of end of year for
, 3. Where the same customers are served under more then one each applicable revenue acccunt subheeding Average KWh of Revenue Un* Number and Trtie of Rete Schedule MWh Sold Revenue Number of Sales per per No. Customers Customer KWh Sold la) (b) fel idi (el (!)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 INTEP T10NALLY BLANI; 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 ) 39 40 41 Total Billed 42 Total Unbilled Rey, (See Instr. 61 43 TOTAL cne ennu vn rnestreen ,3 om 4. . . aa m , Nov* pwn in 11()
e C BLANK PAGE (Next Page is 310) i I l i
1 Nome of Respondent This Report is: . D:t)of Report Year of Report (1) @ An Original (Mo,Da,Yr)
- VEG&T (21 OA Resubmission Dec.31,1 d SALES FOR RESALE (Account 447)
- 1. Report sales during the year to other electric utilities and to of delivery; FP(C), firm power supplying total system re- \,
cities or other public authorities for distribution to ultimate con. quirements of customer or total requirements at a specific point /, sumers. of delivery with credit allowed customer for available standby; FP(P), firm power supplementing customer's own generation or
- 2. Provide in column (a) subheadings and classify sales as to other purchases; DP, dump power; 0, other. Describe in a foot-(1) Associated Utilities, (2) Nonassociated Utilities, (3) Muni- note the nature of any sales classified as Other Power. Place an cipalities, (4) Cooperatives, and (5) Other Public Authorities. For "x" in column (c) if sale involves export across a state line. Group each sale designate statistical classification in column (b) using together sales coded "x" in column (c) by state (or county) of the following codes: FP, firm power supplying total system re- origin identified in column (e), providing a subtotal for each state quirements of customer or total requirements at a specific point (or county) of delivery in columns (1) and (pl. '
g lb o 3 MW or MVa of Demand Line g jj 4l 2* E3 Point of Delivery GS glj{ (Specify which) No. 3g {gg o} (State or countyl E S Contract Monwy nnua Ma "
$8 5$ b 0$ 5 o 5.5 Demand
$a1 mum g oe nd fel Ib) (c) id) fel til (g) thi fil 1
Northeast Utilities 2 Service Co. DP X VELCO System 3 North Attlebero 4 Electric Department DP X VELCO System 5 Vermont Electric 6 Cooperative, Inc. :P(P) CVPSC & GMP Subtransm. SS stem 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 g 40 / 41 42 43 44 'ERC FOlol NO.1 (REVISED 12 81) Page 310
r Nameif Respondent This Report is: Date cf Report Year of Report (1) @ An Original (Mo, Da, Yr) VEG&T (2) OA Resubmission Dec. 31,190_b_. SALES FOR RESALE (Account 447) (Continged)
- 3. Report separately firm, dump, and other power sold to the they are used in the determination of demand charges. Show in same utility. column (j) type of demand reading (i.e., instantaneous,15,30, or
- 4. If delivery is made at a substation, indicate ownership in col- 60 minutes integrated).
umn (f), using the following codes: RS, respondent owned or 6. For column (1) enter the number of megawatt hours shown leased; CS, customer owned or leased. on the bills rendered to the purchasers.
- 5. If a fixed number of megawatts of maximum demand is 7. Explain in a footnote any amounts entered in column (o),
specified in the power contract as a basis of billings to the such as fuel or other adjustments. customer, enter this number in column (g). Base the number of 8. If a contract covers several points of delivery and small megawatts of maximum demand entered in columns (h) and (i) amounts of electric energy are delivered at each point, such sales on actual monthly readings. Furnish these figures whether or not may be grouped. REVENUE Witage Wh ch Demand Other
" ""* Charges Energy Charges Total b Delivered fil ik) (I) Im) int foi (pl 1
73,269 2,813,447 2,813,447 2 3 4 21,985 860,295 860,295 5 6 87,911 1,732,764 1,294,088 3,026,852 7 8 9 10 11 12 i 13 ! 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 FERC FORM NO.1 (REVISED 12 81) Page 311 Next Page is 320
e This Report is: Date e,f Report Year C.f Report- , Nome af Respondent . (1) QAn Original (Mo, De. Yr) VEGt,T Dec.31,190.b (2) CA Resubmission ELECTRIC OPERATION AND MAINTENANCE EXPENSES If the amount for previous year is not derived from previously reported figures, explain in footnotes. Amount for Amount for Line Account Previoue Year Current Yeer No. (a) (b) (c) 1 1. POWER PRODUCTION EXPENSES 2 A. Steam Power Gerv ation 3 Operation 4 (500) Operation Supervision and Engineering 5 (501) Fuel 6 (502) Steam Expenses 7 160119eam from Other Sources 8 (Less) (504) Steam Transferred-Cr._ 9 (505) Electric Expenses 10 (506) Miscellaneous Steam Power Expenses 11 (507) Rents 12 TOTAL Operation (Enter Totaloflines 4 thru 11) 13 Maintenance 14 (510) Maintenance Supervision and Engineering 15 (511) Maintenance of Structures . 16 (512) Maintenance of Boiler Plant a 7 17 (513) Maintenance of Electric Plant A" 18 (514) Maintenance of Miscellaneous Steam Plant # 19 TOTAL Maintenance (Enter Totaloflines 14 thru 18) A" 20 TOT AL Power Production Expenses-Steam Power (Enfor Toest of tidN and 191 21 8. Nuclear Power Generation 22 Operation 23 (517) Operation Supervision and Engineering 24 (518) Fuel 25 (519) Coolants and Water 26 (520) Steam Expenses 27 (521) Steam from Other Sources 28 (Less) (522) Steam Transferred-Cr. 29 (523) Electric Expenses 30 (524) Miscellaneous Nuclear Power Expenses 31 (525) Rents 32 TOTAL 0peration (En ter Toni of lines 23 thru 31) 33 Maintenance 34 (b28) Maintenance Supervision and Engineeririg 35 (529) Maintenance of Structures 36 (530) Maintenance of Reactor Plant Equipment 37 (531) Maintenance of Electric Plant 38 (532) Maintenance of Miscellaneous Nuclear Plant 39 TOTAL Maintenance (Enteer Total of lines 34 thru 38) 40 TOTAL Power Production Expenses-Nuclear Power (Enter Torat oflines 32 and 391 41 C. Hydraulic Power Generation 42 Operation 43 (535) Operation Supervision and Engineering I 44 (536) Water for Power 45 (537) Hydraulic Expenses 46 (538) Electnc Expenses ' 47 (539) Miscellaneous Hydraulic Power Generation Expenses 48 (540) Rents 49 TOTAL Operation (Enter Totaloflines 43 thru 48) riw rnim vn t e prvWrn 17.Rt t o .,.. v n 1
l l Nome cf Respondent This Report is: Date cf Report Year cf Report I (1) @ An Ortnet (Ma, D), Yr) VEGr.T (2) OA Resubrrussion Dec. 31,191 ELECTRIC OPERATION AND MAINTENANCE EXPENSES (Continued) Line
^ " ^ "
Account Current Year Previous Year No. in) (b) (c) 50 C. Hydraulic Power Generation (Continued) 51 Maintenance 52 (541) Maintenance Supervision and Engineering 53 (542) Maintenance of Structures 54 (543) Maintenance of Reservoirs, Dams,and Waterways 55 (544) Maintenance of Electric Plant 56 (545) Maintenance of Miscellaneous Hydraulic Plant 57 TOTAL Maintenance (Enter Total oflines 52 thru 56) 58 TOTAL Power Production Expenses-Hydraulic Power (Enter Toraloflines 49 and 571 59 D. Other Power Generation 60 Operation 61 (546) Operation Supervision and Engineering 62 (547) Fuel 63 (548) Generation Expenses 64 (549) Miscellaneous Other Power Generation Expenses 65 (550) Rents 66 TOTAL Operation (Enter Totaloflines 61 thru 65) 67 Maintenance 68 (551) Maintenance Supervision and Engineering 69 (552) Maintenance of Structures 70 (553) Maintenance of Generating and Electric Plant 71 (554) Maintenance of Miscellaneous Other Power Generation Plant 72 TOTAL Maintenance (Enter Totsioflines 68 thru 71) 73 TOTAL Power Production Expenses-Other Power (Enarr Totst of tines 66 and 72) 74 E. Other Power Supply Expenses i:iMi; 75 (555) Purchased Power 6.046.176 8;_124.061 76 (556) System Control and Load Dispatchina 26.841 24.345 77 (557) Other Expenses 93,257 37.032 78 TOTAL Other Power Supply Expenses (Enter Totaloflines 75 thru 77) 6.176.474 5.190.440 79 TOTAL Power Production Expenses (Enter Totaloflines 20,40,58,73, and 78) 6.176.474 5.190.440 80 2. TRANSMISSION EXPENSES 81 Operation 82 (560) Operation Supervision and Engineering 83 (561) Load Dispatching 84 (562) Station Expenses 85 (563) Overhead Line Expenses 86 (564) Underground Line Expenses 87 (565) Transmission of Electricity by Others 252.804 324.300 88 (566) Miscellaneous Transmission Expenses 33.017 89 (567) Rents 90 TOTAL Operation (Enter Totst of fines 82 thru 89) 252.804 357.317 91 Maintenance 92 (568) Maintenance Supervision and Engineering 93 (569) Maintenance of Structures 94 (570) Maintenance of Station Equipment 95 (571) Maintenance of Overhead Lines 96 (572)Maiatenance of Underground Lines 97 (573) Maintenance of Miscellaneous Transmission Plant 98 TOTAL Maintenance (Enter Totaloflinee 92 thru 97) 99 TOTAL Transmission Expenses (Enter Totalof fines 90and 98) 252.804 357.317' 100 3. DISTRIBUTION EXPENSES ::M 101 Operation :::M 102 (580) Operation Supervision and Engineering
- 103 (581) Load Dispatching ~
FERC FORM NO.1 (REVISED 12-81) Page 321
Name ef Respondent Tha Report is: Date ef Report Year cf Report . (1) @ An Original (Mo, De, Yr) VEGr.T (2i O A Resubmission Dec. 31,1964 ELECTRIC OPERATION AND MAINTENANCE EXPENSES (Continued) Line Amount for Amount for No. Account Current Year Previous Year (a) (b) (c) 104 3. DISTRIBUTION EXPENSES (Continued) 105 (582) Station Expenses 106 (583) Overhead Line Expenses 107 (584) Underground Line Expenses 108 (585) Street Lighting and Signal System Expenses 109 (586) Meter Expenses 110 (587) Customer Installations Expenses 111 (588) Miscellaneous Distribution Expenses 112 (589) Rents 113 TOTAL Operation (Enter Total oflines 102 thru 112) 114 Maintenance 115 (590) Maintenance Supervision and Engineering 116 (591) Maintenance of Structures 117 (592) Maintenance of Station Equipment 118 (593) Maintenance of Overhead Lines 119 (594) Maintenance of Underground Lines 120 (595) Maintenance of Line Transformers 121 (596) Maintenance of Street Lighting and Signal Systems 122 (597) Maintenance of Meters 123 (598) Maintenance of Miscellaneous Distribution Plant 124 TOTAL Maintenance (Enter Totaloflines 115 thru 123) 125 TOTAL Distribution Expenses (Enter Totalof fines 113 and 124) 126 4. CUSTOMER ACCOUNTS EXPENSES 127 Operation 128 (901) Supervision 129 (902) Meter Reading Expenses 130 (903) Customer Records and Collection Expenses 1 nfiq qq7 131 (904) Uncollectible Accounts 132 (905) Miscellaneous Customer Accounts Expenses 1 n64 47 133 TOTAL Customer Accounts Expenses (Enter Totaloflines 128 thru 132) 134 5. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES 135 Operation 136 (907) Supervision 137 (908) Customer Assistance Expenses 138 (909) Informational and Instructional Expenses 139 (910) Miscellaneous Customer Service and Informational Expenses 140 TOTAL Cust. Service and Informational Exp. (Enter Tocs/ of tines f36 thru F39) 141 6. SALES EXPENSES 142 Operation 143 (911) Supervision 144 (912) Demonstrating and Selling Expenses 145 (913) Advertising Expenses 146 (916) Miscellaneous Sales Expenses 147 TOTAL Sales Expenses (Enter Totaloflines 143 thru 146) 148 7. ADMINISTRATIVE AND GENERAL EXPENSES 149 Operation 150 (920) Administrative and General Salaries 23.251 21.043 (921)OHice Supplies and Expense 151 152 7.438 7.621 ) (Less) ,922) ( Administrative Expenses Transferred-Cr. 153 (923) Outside Seevices Employe 9.426 18.139 l 154 (924) Propeity insurance 155 (925) Injuries and Damages 997 868 l 156 (926) Employee Pensions and Benefits l rrin' I:ntn1 No I s it sTigrt) 11.st i pena 177 ,
P o Name cf Respondent his Report is: Datnf Report Year tf Report (1) @ An Original (Mo, Da, Yr) VEGr,T m O A Resubmission Dec.31,198k ELECTRIC OPERATION AND MAINTENANCE EXPENSES (Continued) Line ^*""I ' ""I ' ' Account No. Current Year Previous Year (s) (b) (c) 157 7. ADMINISTRATIVE AND GENERAL EXPENSES (Continued) 158 (927) Franchise Requirements 159 (928) Regulatory Commission Expenses 37.976 806 160 (929) Duplicate Charges-Cr. 161 (930.1) General Advertising Expenses 162 (930.2) Mismilaneous General Expenses 37.581 24.597 163 (931) Rents 164 TOTAL Operation (Enter Total of lines 150 thru 163) 116.669 73.074 165 Maintenance 166 (935) Maintenance of General Plant 167 TOTAL Administrative and General Expenses (Enter Totaloflines 164 thru 1661 116_669
~
7"I.074 168 TOTAL Electric Operation and Maintenance Expenses (Enter Totaloflines 79,99,125,133,140,147, and 167) s_q47_a36 g_f21_828 NUMBER OF ELECTRIC DEPARTMENT EMPLOYEES
- 1. The data on number of employees should be reported 3. The number of employees assignable to the electric de-for the payroll period ending nearest to October 31, or any partment from joint functions of combination utilities may be payroll period ending 60 days before or after October 31. determined by estimate, on the basis of employee equivalents.
- 2. If the respondent's payroll for the reporting period in- Show the estimated number of equivalent employees attributed cludes any special construction personnel, include such em- to the electric department from joint functions.
ployees on line 3, and show the number of such special con-struction employees in a footnote.
- 1. Payroll Period Ended (Date) Doenmhor 16. 14Rl4
- 2. Total Regular Full Time Employees 3*
- 3. Total Part Time and Temporary Employees
- 4. Total Employees 3
*Three employees are also employed by Vermont Electric Cooperative, Inc. (VT 7)
FERC FORM NO.1 (REVISED 12-84) Page 323 Next Page is 326
1 I Nems of Respondent This Report is: Date of Report Year of Report (1) dan Original (Mo,De,Yr)
- VEG&T 12) OA Resubmission Dec.31,19 h PURCHASED POWER (Account 555)
(Except interchange power)
- 1. Report power purchased for resale during the ye?r. Report (6) Cooperatives, and (7) Other Public Authorities. For each pur-on page 32s particulars (details) concerning interchange power chase designate statistical classification in column (b) using the transactions during the year; do not include such figures on this following codes: FP, firm pnwer; DP, dump or surplus power: O, rage, other. Describe the nature of any purchases classified as Other
- 2. Provide in column (a) subheadings and classify purchases Power. Enter an "x" in column (c) if purchase involves import as to: (1) Associated Utilities, (2) Nonassociated Utilities, (3) As- across a state line.
sociated Nonutilities, (4) Other Nonutilities, (5) Municipalities, 3. Report separately firm, dump, and other power purchased g l 6 T MW or MVa of Demand 3 No. Purchased Fmm
}k EI k
u e - j 'l) Point of Receipt 3 (Specify which) A* age Annual
- a. g gay jg I' g Contract MontNy y,,;,,,
hb E) No t/> o E Demand M D Demand fal Ibl Icl Idl (el !!) (g) thi til 1 VELCO 2 (1) Merrimack 2 FP X VELCO Trans. System 1,909 1,909 1,909 3 4 " " " (2) Vermont Yankee FP 5,561 5,561 5,561 5 " " Nepool Economy DP X " 6 7 8 (3) Northeast Util. FP X " " " 10,100 11,518 13,612 9 to (4) CVPSC FP f CVPSC - Sub. 17,200 17,100 17,200 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 ) 42 43 44 45 TERC FORM NO. I (REVISED l2 81) Page 326
e Nomecf Respondent This Report is. Dato cf Report Yeer cf Repert itI @An Original (Mo, De, Yr) VEGr.T (2) OA Resubmission Dec. 31,1984_ PURCHASED POWER (Account 555) (Continued) (Exceot interchange power) from the same company. readings. Furnish those figures whether they are used or not in
- 4. If retceipt of power is at a substation, indicate ownership in the determination of demand charges. Show in column (j) type of column (f), using the following codes: RS, respondent owned or demand reading (i.e. Instantaneous,15, 30, or 60 minutes in-leased; SS, seller owned or leased. tegrated).
- 5. If a fixed number of megawatts of rnaximum demand is 6. For column (1) enter the number of megawatt hours pur-specified in the power contract as a basis of billing, enter this chased as shown by the power bills rendered to the purchases.
number in column (g). Base the number of megawatts of maxi- 7. Explain in a footnote any amount entered in column (o), mum demand shown in columns (h) and (i) on actual monthly such as fuel or other adjustments. Cost Of Energy V0*9' U"' Type of Demand Megewett at Which Demand Energy Other Total No. Reeding Hours Received Charges Charges Charges (m + n + o) til (kl (t) Imi in) fol (p) 1 1 Hr. 115 KV 12,815 95,412 193,869 289,281 2 3 1 Hr. 115 KV 35,002 1,013,435 231.125 100,996 1,345,556 4 1 Hr. 1,603 (7,414) 153,919 146,505 5 115 KV 0 1 Hr. 115 KV 501 126,020 52,002 178,022 7 8 1 Hr. 9 l4.5/12.5 -
/72133,244 2,181,202 1,848,466 4,029,668 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39
( , 40 41 42 43 44 45 FERC FORM NO.1 (REVISED 12-81) Page 327
.j tensesof Rassenesat This Resort as: Doesof Mesort veer er ressert ' 3g i1i san Orgass gene, De, Yet VEG&T tre OA nasunaassion oss.31,180$_ C Sue 4 MARY OF INTERCHANGE ACCORDING TO COMPANIES AND POINTS OF INTERCHANGE l (included in Account 566) z a' 1 @_below aB.cf the megemett-hours _recewed
- 3. Furrush particulars ideteRal of settlements for in - wem doenmuned. N such amasammers reswesents the not C
, % desmered during the year. For receipts and deliwenos torchenge power in a footnoes or on a supplomontal of deines and cres5es under .,n witorconnocean, pauser - ,under inserchenge power agreements, show the not page; mciude the name of each company, the nature of poosag, coordineman, or other auch arrangement, sub-g or credit resulang therefrom.
- 2. Prowedo subheadmgs and cleendy wiserchanges as the trarinacarwi, and the deter amoums wwoiwod. If est-tiement for any transecean'also includes credit or debit mit a copy of the annual summary of transecuens and 12ings among the pertes to the aycoment. If the rri
$ to (1) a- Uni 3ies, (2) W Unhees, amounts other then for increment generamon maponses, amount of settlement reported in this schedule for any y ;(31 A==ar==a d NonutMities, ' (4) Other Nonuchtes, show such other component amounts esperseely, in ad- traneoction does not represent an of the charges and c 151 Murnaeapahm== 16) raaparatives, and (7) Other Public dition to debit or credit for increment generseon on- credes covered by the sysoment, fumseh in a footnoes - , Authonnes. For each interchange across a state line penses, and give a brief emplenenon of the factors and a descnption of the other debits and crusta and stees de . glace an **x" in column (bl. pnncipios under which such,other component amounts the amounts and accounts in which such other amounts
_-- are included for the weer. Messisest House 2 E l 'I peopne of CorW j Point'of :.._2__ _- med = = which nece,,e. oei,,e.e. n, once,s e s a me ant
)gI - e interchensed sth 231 '
m Kies a* ahn tci
~
141
'* tel fra les ths ris
~
g 2 15 3 4 5 6 7 8 9 INTENTIONA .LY BLANK 10 11 12 13 14 15 16 17 y 18
?. 19 o 2) i 5 2 (1
- 22 h 23 O
r-0 0 BLANK PAGE (Next Page is 332)
Nome of Reusendent This Resort is: Dotocf Report Yearaf Report (1) EAn Orismei (Me, De, yr) VEGsT (21 O A R e son one.31,solk TRANSMISSION OF ELECTRICITY FOR OR BY OTHERS (Accounts 456 arid 566) (Including transactions sometimes referred to as " wheeling")
},
- 1. Describe below and give particulars of any transactions by (d) Monetary settlement received or paid and basis of set-respondent during the year for transmesion of electricity for or by , tiement, included in Account 486 or W.
others during year, includeg trenesctions sometimes referred to (e) Nonmonetary settlement, if any, specifying the MWh as wheeling. representing componestion for the service, specsfymg
- 2. Provide seperate subheedings for: (a) Transmission of Elec- whether such power was firm power, dump or other tricity for Others (included in Account 4Ei6) and (b) Transmission power, and state beeis of settlement. If nonmonetary of Sectricity by Others (Account liG6). settlement was other than MWh describe the nature of
- 3. Fumish the following information la the space below con- such settlement and beeis of determmation.
coming each treneoction (f) Other explanations which may be necessary to indi- ! (a) Name of company and description of service rendered cate the nature of the reported trenesctions. Include in or received. Designate associated companies. such explanations a statement of any meterial services (b) Points of origin and termination of service speedying remaining to be received or fumeshed at end of year and also any transformation service involved, the accounting recorded to avoid a possible meterial (c) MWh received and MWh delivered. distortion of reported operating income for the year. A/C 565 , VELCO 208,224 i Northeast Utilities 67,344 N.E.P.C.0. 44,580 i l l I i ( l l 1 f b
)
l "ERC FORM NO.1 (REVISED 12-81) Page 332
Nome of Respondent * ' * ' Thes Report is: Date cf Report Yeer cf Report li) $An Crigenal (Mo, De, Yr) _VEGt,T 121 OA nesubmi on Dec. si, ig h MISCELLANEOUS GENERAL EXPENSES (Account 930.7) (ELECTRIC)
'lf ^ "'
1 Industry Associatiori Dues 1.050 2 Nuclear Power Research Expenses 3 Other Experimental and General Research Expenses 4 Publishing and Distributing information and Reports to Stockholders: Trustee. Registrar, and Transfer Agent Fees and Expenses, and Other Expenses of Servicing Outstanding Securities of l the Respondent 5 Other Expenses (List items of $5,000 or more in this column showing the (1) purpose, (2) recipient and (3) amount o* such items. Group amounts of less than $5,000 by classes if the number of items so grouped is shown) 6 Assuming BA4, BC8 Debt 930.2 5,733 7 ' 8 Arnortization of start-up expense 9 930.2 4,200 10 Association Meetings 930.4 13,670 11 , 12 Directors 930 5 12,928 13 14 15 16 ' 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 i 41 42 43 f 44 45 46 TOTAL- 37,581 FERC FORM NO. I (REYlSED 12-81) Page 333
Name of Respondent This Report is: Date of Report Year of R port (1) QAn Original (Mo,Da,Yr) VEG&T 12) O A Raubminion Dec.31,19 1 DEPRECIATION AND AMORTIZATION OF ELECTRIC PLANT (Accounts 403,404,405) (Except amortization of acquisition adjustments) , )
- 1. Report in Section A for the year the amounts for: (a) In column (b) report all depreciable plant balances to which Depreciation Expense (Account 403); (b) Amortitation of rates are applied showing subtotals by functional classifications Limited Term Electric Plant (Account 404); and (c) Amortization and showing a composite total. Indicate at the bottom of section of Other Electric P/ ant (Account 405). C the manner in which column (b) balances are obtained. If
- 2. Report in section B the rates used to compute amortization average balances, state the method of averaging used.
charges for electric plant (Accounts 404 and 405). State the basis For columns (c), (d), and (e) report available information for used to compute the charges and whether any changes have each plant subaccount, account or functional classification listed been made in the basis or rates used from the preceding report in column (a), if plant mortality studies are prepared to assist in year. estimating average service lives, show in column (f) the type mor-
- 3. Report all available information called for in secticn C every tality curve selected as most appropriate for the account and in fifth year beginning with report year 1971, reporting annually only column (g), if available, the weighted average remaining life of ch'nges to columns (c) through (g) from the complete report of surviving plant, the preceding year. If composite depreciation acccunting is used, report Unless composite depreciation accounting for total available information called for in columns (b) through (g) on this depreciable plant is followed, list numerically in column (a) each basis.
plant subaccount, account or functional classification, as ap- 4. If provisions for depreciation were made during the year in proprtte, to which a rate is applied. Identify at the bottom of sec. addition to depreciation provided by application of reported rates, tion C the type of plant included in any subaccounts used, state at the bottom of section C the amounts and nature of the I provisions and the plant items to which related. A. Summary of Depreciation and Amortization Charges Depreciation Amortization of Amortization of
"* Expense Limited Term Electric Other Electric Total Functional Classification No. (Account 403) Plant ( Acct. 404) Plant (Acet. 405) fal (b) (c) (do le) 1 Intangible Plant 2 Steam Production Plant 3 Nuclear Production Plant 4 Hydraulic Production Plant-Conventional 5 Hydraulic Production Plant-Pumped Storage 6 Other Production Plant 7 Transmission Plant 8 Distribution Plant 9 General Plant 2,047 2,047 10 Common Plant-Electric 11 TOTAL 2,047 2,047
- 8. Basis for Amortization Charges
)
HRC FOlol NO.1 (REVISED 12 81) Page 334
"Norne of Mempondent -- TNs Report lo: Date of Report Yeer tf Report I11ISAn Orionel (Mo, De, Yrl l VEG&T 12) DA Resubmision Dec.31.11Sk {
DEPRECIATION AND AMORTIZATION OF ELECTRIC PLANT (Continued) C. Factors Used in Estimating Depreciation Charges Deprecamble Estimated Not Applied Mortality Average Line Account No. No. Plant Bees Avg. Sendce Salvage Depr. Rote (s) Curve Romeining (In thousande) Life (Percent) (Percent) Type Life (el (bl (el (d) tel (f) (g) l 12 1 13 ' 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 lMI 39 40 1NTENTIONALLY BLANK 41 42 43 44 45 46 47 48 49 50 51 52 53 54 56 56 57 58 59 80 61 62 63 FERC FORM NO.1 (REVISED 12 81) Page 335
Nome of Roopendent TNs Report is: Daoof Report Yeer of Report (1) EAn Orignal (Mo, De, Yr) VEG6T Dec.31,1935
- 12) OA Resubmise on DEPRECIATION AND AMOHTIZATION OF ELECTRIC PLANT (Continued)
C. Factors Used in Estimating Depreciation Charges (Continued) Depreciable Estimated Net Applied Mortality Average Accent Avg. Service Salvage Dept. Rate (s) Plant Base Curve Remaining
. No.
(in thousands) Life (Percent) (Percent) Type Life tal (b) (c) (di fel til (g) 64 - 66 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 86 86 87 88 lNTENT10NAL .Y BLANK 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 1 111 112 113 114 115
'ERC FORM NO. I (REVISED 12 81) Page 336 l
Namecf Respondent This Report 1s: Date tf Report Year af Report (1) GAn Orijnel (Mo, D2, Yr) VEG&T (M O A Resubenision Dec.31,1983L PARTICULARS CONCERNING CERTAIN INCOME DEDUCTIONS AND INTEREST CHARGES ACCOUNTS Report the information specified below, in the order given, for Uniform System of Accounts. Amounts of less than 5% of each the respective income deduction and interest charges accounts. account total for the year (or $1,000, whichever is greater) may be Provide a subheading for each account and a total for the ac- grouped by clamaan within the above accounts. i count. Additional columns may be added if deemed appropriate (c) Interest on Debt to Associated Companies (Account 4301-with respect to any account. For each associated company to which interest on debt was in-(a) Misce #eneous Amortlistion (Account 425)-Describe the curred during the year, indicate the amount and interest rate re-nature of items included in this account, the contra account spectively for (a) advances on notes, (b) advances on open charged, the total of amortization charges for the year, and the account, (c) notes payable, (d) accounts payable, and (e) other period of amortization. debt, and totalinterest. Explain the nature of other debt on which (b) Misce #eneous /ncome Deductions-Report the nature, interest was incurred during the year. payee, and amount of other income deductions for the year as re- (d) Other /nterest Ex, cense (Account 431)-Report particulars quired by Accounts 426.1, Donations; 426.2, Life insurance; (details) including the amount and interest rate for other intereat 426.3, Penalties; 426.4, Expenditures for Certain Civic, Political charges incurred during the year. and Related Activities; and 426.5, Other Deductions, of the Une item Arnount No. fel (bl 1 Miscellaneous income Deductions 2 A/C 426.1 - Other Deductions - Donations 50 3 4 A/C 431 - Other Interest Expense 5 1% per month outstanding CVPSC Balance 7,526 6 Interest on short-term borrowing 70,126 7 77,652 8 9 Interest rates on short-term debt ranged from 8.55% to 12 375% 10 during 1984. 11 12 13 14 15 16 17 18 19 20 21 22 , 23 24 25 26 27 28 29 30 31 32 33 34 35 ( 36 37 38 39 40 41 FERC FORM NO.1 (REVISED 12-81) Page 337 *"' P'0* 360
Nome cf. F+&t This I@ t is: Date tf Report Yeer Cf Report . (1) GAn Orirnal (Mo, De, Yr) VEG&T (2) OA Resubminion Dec.31, teal > REGULATORY COMMISSION EXPENSES -
- 1. Report particulars (details) of regulatory commission ex- 2. In columns (b) and (c), indicate whether the expenses were j penses incurred during the current year (or incurred in previous assessed by a regulatory body or were otherwise incurred by the '
years, if being amortized) relating to formal cases before a utility, regulatory body, or cases in which such a body was a party. Deferred Description Assessed by Expenses Total in Account Line (Fumish name of regulatory commission or body, No, Regulatory of Expenses 186 at the docket or case number, anda description Commission Utility to Date Beginning of the case.) of year (al (bl (cl (d) tel 1 PSB Docket 4701: VPIRG - Seabrook 37,976 37,976 2 3 4 5 6 7
'8 9
10 11 12 13 14 15 16 17 18 19 20 21 22
,23 24 25 26 '
27 28 29 30 . 31 32 33 34 35
.36 37 38 39 40 41 42 43 , ' , 44 45 46 TOTAL 37,976 37,976 ,
nt vonu No i e prvisrn i,.m .- -- a
9 Name of Respondent This Report 13: Date of Report Year of Report (1) @ An Original (Mo, De, Yr) VEGr,T (2) DA Resubrnission Dec. 31,1Mla REGULATORY COMMISSION EXPENSES (Continued)
- 3. Show in column (k) any expenses incurred in prior years 5. List in column (f), (g), and (h) expenses incurred during year which are being amortized. List in column (a) the period of amor- which were charged curreritly to income, plant, or other ac-tization. counts.
- 4. The totals of columns (e), (i), (k), and (1) must agree with 6. Minor items (less than $25,000) may be grouped.
the totals shown at the bottom of page 223 for Account 186. EXPENSES INCURRED DURING YEAR AMORTIZED DURING YEAR CHARGED CURRENTLY TO Deferred in Deferred to Contra Account 186 Line Account 186 Am unt Department Account No. Amount Account End of Year No. (fI igI (hI fil fil (kI fil 928 37,976 -- -- -- 1 2 3 4 5 6
-7 8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 ( 41 42 43 44 45 37,976 46 FERC FORM NO.1 (REVISED 12-81) Page 351
m Nome of Respondent This Report 1s: Date af Report Year af Report (1) EAn Original (Mo, D2, Yr) VEG&T 1210A Rcubmission Dec. 31.19M RESEARCH, DEVELOPMENT, AND DEMONSTRATION ACTIVITIES
- 1. Describe and show below costs incurred and accounts b. Fossil-fuel steam charged during the year for technological research, development, c. Internal combustion or gas turbine and demonstration (R, D & 0) projects initiated, continued, or d. Nuclear concluded during the year. Report also support given to others e. Unconventional generation during the year for jointly sponsored projects. (Identify recipient f. Siting and heat rejection regardless of affiliation.) For any R D & D work carried on by the (2) System Planning, Engineering and Operation respondent in which there is a sharing of costs with others, show (3) Transmission separately the respondent's cost for the year and cost chargeable a. Overhead t) others. (See definition of research, development, and b. Underground demonstration in Uniform System of Accounts.) (4) Distribution
- 2. Indicate in column (a) the applicable classification, as (5) Environment (other than equipment) shown below. Classifications: (6) Other (Classify and include items in excess of A. Electric R, D & D Performed Internally $5,000.1 (1) Generation (7) Total Cost incurred
- a. Hydroelectric B. Electric R, D & D Performed Externally
- 1. Recreation, fish, and wildlife (1) Research Support to the Electrical Research Council li. Other hydroelectric or the Electric Power Research Institute Classification Description fal (bl 1
2 3 4 5 6 7 8 9 10 11 12 13 14 INTENTIONALLY BLANK 15 16 17 18 19 20 ! 21 22 23 24 25 26 4 2/ 28 29 30 31 3? 4 h ( 35 36 37 38 "ERC FORM NO.1 (REVISED 12-81) Page 352 , I
s Nome of Respondent -- This Report is: Dat')of Report Year of Report (1) E An Originsi (Mo,De,Yr) VEGr,T (2) OA Resubmission Dec.31,Ib RESEARCH, DEVELOPMENT, AND DEMONSTRATION ACTIVITIES (Continued) (2) Research Support to Edison Electric Institute penses during the year or the account to which amounts were (3) Research Support to Nuclear Power Groups capitalized during the year, listing Account 107, Construction (4) Research Support to Others (Classify / Work in Progress, first. Show in column (f) the amounts related (5) Total Cost incurred to the account charged in column (e).
- 3. Include in column (c) all R, D & D items performed internally 5. Show in column (g) the total unamortized accumulation of and in column (d) those items performed outside the company costs of projects. This total must equal the balance in Account costing $5,000 or more, briefly describing the specific area of R. 188, Research, Development, and Demonstration Expenditures, D & D (such as safety, corrosion control, pollution, automation, outstanding at the end of the year.
rneasurement, insulation, type of appliance, etc.). Group items 6. If costs have not been segregated for R, D & D activities or under $5,000 by classifications and indicate the number of items projects, submit estimates for columns (c), (d), and (f) with such grouped. Under Other, (A.(6) and B.(4)) classify items by type of amounts identified by "Est." R, D & D activity, 7. Report separately research and related testing facilities
- 4. Show in column (e) the account number charged with ex- operated by the respondent.
Costs Incurred Intemelly Costs incurred Externally
^ N Unamortized Une Current Year Current Year Account Amount Accumulation No.
(cl idi fel (f) (9) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 lNTENTIONALL Y BLANK 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 l( l 35 36 37 38 ! FERC FORM NO.1 (REVISED 12-81) Page 353
Nerne cf Respondent This Report is: Dato cf Report Yeer cf Report (1) man Orignal (Mo. D2, Yr) VEGr,T (21 O A Resubmission Dec. 31.198.k. DISTRIBUTION OF SALARIES AND WAGES Report below the distribution of total salaries and wages for the columns provided. In determining this segregation of salaries and year. Segregate amounts originally charged to clearing accounts wages originally charged to clearing accounts, a method of ap. to Utility Departments, Construction, Plant Removals, and Other proximation giving substantially correct results may be used. Accounts, and enter such amounts in the appropriate lines and Allocation of Line Direct Payroll Payroll Charged for Total N a. Distribution Clearing Accounts fal ibi (c) idl 1 Electric 2 Operation 3 Production 9.377 4 Transmission 5 Distribution 6 Customer. Accounts 7 Customer Service and Informational 8 Sales 9 Administrative and General 4.021 10 TOTAL Operation (Enter Total oflines 3 thru 9) 13.393 11 Maintenance 12 Production
. 13 Transmission 14 Distribution 15 Administrative and General 16 TOTAL Maintenance (Enter Total of lines 12 thru 15) 17 Total Operation and Maintenance 18 Production (Enter Total of lines 3 and 12) 9.372 19 Transmission (Enter Total of lines 4 and 13) 20 Distribution (Enter Total of lines 5 and 14) 21 Customer Accounts (Transcribe from line 6) 22 Customer Service and Informational (Transcribe from line 7) 23 Sales (Transcribe from line 8) 24 Administrative and General (Enter Totalo/ lines 9 and 15) 4.071 25 TOTAL Operation and Maintenance trorar orsnes is thru m 11_141 1 c;00 14.893
, 26 Gas l 27 Operation 28 Production-Manufactured Gas @iii 29 Production-Natural Gas (including Expl. and Dev.) l 30 Other Gas Supply l 31 Storage. LNG Terminaling and Processing 32 Transmission 33 Distribution 34 Customer Accounts - ( 35 Customer Service and informational l 36 Sales ! 37 Administrative and General l 38 TOTAL 0peration (Enter Total oflines 28 thru 37) ! 39 Maintenance 40 Production-Manufactured Gas 41 Production-Natural Gas 42 Other Gas Supply ) 43 Storage, LNG Terminaling and Processing [ 44 Transmission 45 Distribution 46 Administrative and General 47 TOTAL Maintenance (Enter Total oflines 40 thru 46)
'ERC FOR51 NO.1 (REVISED 12-81) Page 354
, Nerneof Respc, rent This Report is: D;te cf Report Year cf Report (1) $An Oripnal (Mo, Da, Yr)
VEGET (2) OA Resubrnission Dec. 31,19h DISTRIBUTION OF SALARIES AND WAGES (Contir.ued) Direct Payroll Allocation of Un* Classification Payroll Charged for No. Distribution Toul Clearing Accounts fa) (b) (c) id) Gas (Continued) 48 Total Operation and Maintenance 49 Production-Manuf actured Gas (Enter Tomt othnes 28 and 40/ 50 Production-Natural Gas (including Expl. and Dev.) (Total oflines 29 and 41) 51 Other Gas Supoly (Enter Total oflines 30 and 42) 52 Storage, LNG Terminaling and Processing (Total oflines 31 and 43) 53 Transmission (Enter Total oflines 32 and 44) 54 Distribution (Enter Total oflines 33 and 45) 55 Customer Accounts (Transcribe from line 34)
~
56 Customer Service and Informational (Transcribe from line 3S) 57 Sales (Transcribe from line 36) 58 Administrative and General (Enter Total of fines 37 and 46) 59 TOTAL Operation and Maint. (Total of fines 49 thru SB) 60 Other Utility Departments 61 Operation and Maintenance 62 TOTAL All Utility Dept. (Total oflines 25,59, and 61) 14,893 13.393 1.500 63 Utility Plant 64 Construction (By Utility Departments) 65 Electric Plant A 1614 717 7.081 66 Gas Plant 67 Other 68 TOTAL Construction (Enter Totaloflines 65 thru 67) 69 Plant Removal (By Utility Department) .w... 70 Electric Plant 71 Gas Plant 72 Other 73 TOTAL Plant Removal (Enter Totaloflines 70 thru 72) 74 Other Accounts (Specify): 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 ( 90 91 92 93 94 95 TOTAL Other Accounts 96 TOTAL SALARIES AND WAGES 19.757 2,217 21,974 FERC FORM NO.1 (REVISED 12-81) Page 355
a Nome of Respondent This Report is: Date of Report Year of Report (1) G An Or6ginal (Mo, De, Yr) VEGr,T (2) [] A Resubminion Dec.31,190S_ COMMON UTILITY PLANT AND EXPENSES I 1, Describe the proparty carried in the utility's accounts as allocation and factors used. con. mon utility plant and show the book cost of such plant at end 3. Give for the year the expenses of operation, maintenance,
)
of year classified by accounts as provided by Plant Instruction 13, rents, depreciation, and amortization for common utility plant Common Utility Plant, of the Uniform System of Accounts. Also classified by accounts as provided by the Uniform System of Ac-show the allocation of such plant costs to the respective depart- counts. Show the allocation of such expenses to the departments monts using the common utility plant and explain the basis of using the common utility plant to which such expenses are , allocation used, giving the allocation factors. related. Explain the basis of allocation used and give the factors
- 2. Furnish the accumulated provisions for depreciation and of allocation, amortization at end of year, showing the amounts and classifica- 4. Give date of approval by the Commission for use of the tions of such accumulated provisions, and amounts allocated to common utility plant classification and reference to order of the utility departments using the common utility plant to which such Commission or other authorization.
accumulated provisions relate, including explanation of basis of INTENTIONALLY BLANK Page 356 Next Page is 401 FERC FORM NO.1 (REVISED 12-81)
. -- .- __. -.- -- _ -- _ _ = _ - . - _ _ _ _- . . - .. . )
i ,
- Nomeaf Respondent This Report is: Deticf Report Yearaf Report (1) QAn Orionet (Mo, De, Yr)
VEGr.T 12) OA Resubmission Dec.31.19N_ )i ELECTRIC ENERGY ACCOUNT Report below the information called for concerning the disposition of electric energy generated, purchased, and inter- { changed during the year. i Line item Megewett Hours Line item Megewett Hours l No. (ep (b) No- (el (b)
, 1 SOURCES OF ENERGY 20 DISPOSITION OF ENERGY i 2 Generation (Excluding Station Use): 21 Sales to Ultimate Consumers (including 183,165 3 Steam Interdepartmental Sales) 4 4 Nuclear 22 Sales for Resale 5 Hydro-Conventional 23 Energy Furnished Without Charge 6 Hydro-Pumped Storage 24 Energy Used by the Company g 7 Other (Excluding Station Use):
- 8 Less Energv for Pumping 25 Electric Department Only j 9 Net Generation (Enter Total 26 Energy Losses
of lines 3 thru 8/ 27 Transmission and Conversion Losses f 10 Purchases 181.164 28 Distribution Losses j 11 Interchanges: 29 Unaccounted for Losses j 12 in (gross) 30 TOTAL Energy Losses 13 Out (gross) 31 Energy Losses as Percent of Total 14 Net interchanges tunes r2.nd r31 on Line 19 % 15 Transmission for/by Others (Wheeling) 32 TOTAL (Enaer Tom / of lines 21, 16 Received MWh 22, 23, 25, and 301 183,165 i 17 Delivered MWh 18 Net Transmission tunesasendr71 1 19 TOTAL (Enter Tots / of lines 9,10,14 and 18) 183.165 ; , MONTHLY PEAKS AND OUTPUT 4
- 1. Report below the information called for pertaining to simul- intermingled transactions. Fumish an explanatory note which in-teneous peaks established monthly (in megawatts) and monthly dicates, among other things, the relative significance of the i output (in megawatt-hours) for the combined sources of electric deviation from basis othenmee applicable, if the indnndual MW
- energy of respondent, amounts of such totals are needed for billing under esperate rate
} i
- 2. Report in column (b) the respondent's maximum MW load schedules and are estimated, give the amount and basis of as measured by the sum of its coincidental not generation and estimate.
purchases plus or minus net interchange, minus temporary 3. State type of monthly peak reading (instantaneous 16,30, j delivenes (not interchange) of emergency power to another or 80 minutes integrated). 4 system. Show monthly peek including such emergency delivenes 4. Monthly output is the sum of respondent's not generetson in a footnote and briefly explain the nature of the emergency, for load and purchases plus or minus not interchange and plus or There may be cases of commingling of purchases and exchanges minus net transmeseson or wheeling. Total for the year must agree t and " wheeling," also of direct deliveries by the supplier to with line 19 above. ' customers of the reporting utility whereen segregation of MW de- 5. If the respondent f as two or more power systems not j mond for determination of peaks as specified by this report may physically connected, fumish the information celled for below for i be unavailable. In these cases, report pooks which include these each system. I Name of System: MONTHLY PEAK Monthly Output (MWh) Month Megewetts Day of Week Day of Month (See Instr. 41
' Hour Type of Reading
\ (,) . (b) (c) (d) (el (t) I9I l 33 January 14.1 34 February 14.1 I7',270 15 836 35 March th.1 1E IEN 36 April 14.1 17.176 i 37 May 17.1 10 867 38 June 17.1 16.644 39 July 18.1 11 6C1 40 August ik.1 1I:M 41 September tR.1 t h _ GA 42 October 17 t 43 November 14.R 3.9 1E;167 44 December 16.6 10 966 45 TOTAL M :G: 181 166 [ FERC FORM NO.1 (REVISED 12 82) Page 401
Nome af Respondent This Report Is: Date(f Report Year e,f Report (1) QAn Original (Mo, Da Yr) VEG&T m OA Resubrnizion Dec. 31,19h STEAM-ELECTRIC GENERATING PLANT STATISTICS (Large Plants)
- 1. Caport data for Plent in Service only.
- 2. Large plants are stearn plants with installed capacity (name plate rateg) of everage number of employees ensignoble to each plant.
- 6. If gas is used and purchneed on a therm besse, report the Stu content of the
)
1 25.000 Kw or more. Report on thee page gas-turt>ne and mtemal combustion plants gas and the quantity of fuel bumed converted to Mcf. of 10.000 Kw or more, and nuclear plante. 7. Quantities of fuel burned (line El and everage cost per unit of fuel bumed fline
- 3. Indicate by a footno's any plant leased or operated as a joint facility. 41) must be consistent with charges to expense accounts 501 and 547 Iline 42) se 4.18 not peak demand ior 80 mmutes as not available. give data which is avasieble, shown on line 21.
specifymg penod. 8. If more than one fuelis burned in a plant, fumish only the composite heet rete
- 5. If any employees attend more then one plant, report on line 11 the apprommate for all fusie bumed.
Line item Plant Narne Plant Nerne No foi (bi (c) 1 Kind of Plant (Steam, Internal Combustion, Gas Turbine or Nuclear) 2 Type of Plant Construction (Conventional, Outdoor Boiler, Full Outdoor, Etc.) 3 Year Originally Constructed 4 Year Last Unit was Installed 5 Total Installed Capacity (Maximum Generator Name Plate Ratings in MW) 6 Net Peak Demand on Plant-MW (60 minutes) 7 Plant Hours Connected to Load 8 Net Continuous Plant Capability (Megawatts) 9 When Not Limited by Condenser Water 10 When Limited by Condenser Water 11 Average Number of Employees 12 Net Generation, Exclusive of Plant Use - KWh 13 Cost of Plant: 14 Land and Land Rights A 15 Structures and improvements as F 16 Equipment Costs .O' 4 17 Total Cost # 18 Cost per KW of installed Capacity (Line 5) #' 19 Production Expenses: nW 20 Operation Supervision and Engineering 21 Fuel 22 Coolants and Water (Nuclear Plants Only) 23 Steam Expenses 24 Steam From Other Sources 25 Steam Transferred (Cr.) 26 Electric Expenses 27 Misc. Steam (or Nuclear) Power Expenses 78 Rents 29 Maintenance Supervision and Engineering 30 Maintenance of Structures 31 Maintenance of Boiler (or Reactor) Plant 32 Maintenance of Electric Plant 33 Maint. of Misc. Steam (or Nuclear) Plant 34 Total Production Expenses 35 Expenses per Net KWh 36 Fuel: Kind (Coal, Gas, Oil, or Nuclear) 37 Unit: (Coal-tons of 2,000 lb.)(Oil-barrels of 42 gals.)(Gas-Mcf)(Nuclear-indica'te) 38 Ouantity (Units) of Fuel Burned 39 Avg. Heat Cont.of Fuel Burned (8tu per Ib. of coal per gat. of oil,or per Mct of gas)(Give unit if nucleari j 40 Average Cost of Fuel per Unit, as Delivered ). f.o.b. Plant During Year 41 Average Cost of Fuel per Unit Burned 42 Avg. Cost of Fuel Burned per Million Btu 43 Avg. Cost of Fuel Burned per KWh Net Gen. 44 Average Btu per KWh Net Generation WRC FOR%1 NO.1 (REVISED 12-82) Pace 402
l
, nome es nespenent , , , This Report k: Date of neport veer se nopert >
, (1) EAn Original (Mo, De, Yr)
VEGsT (2) OA mesuinnission Dec. 31. isk i- i STEAM ELECTRIC GENERATING PLANT STATISTICS (Large Plants) (Continued) '
- s. seens under cost of Plant me beesd en U.S. of A. ecomunes.Producten en- sient. However, N e gas-hwbine unit functone h a conemed cyces operaten wlm a seems do not inswo Pwchemed Power, svasse consol and Lead r n-g. conventiones emern urut. inciude #w ges turtune weth the steem plant, and Other Espanses etsemined as Other Power Suppfy Esponess. 12. If a nucient power generatmg plant, bneNy emplain by footnoes lei accounelng
- 10. For IC and GT stones, suport Operseems Ew. Account Nos. 840 and 900 method for cost of power generated inclueng any emcens comes startwted so en ene m "sesseric Empenses," and henneenance Account Nos. 853 and the on hne research and 2 - _L.-.t: (b) types of cost unies used for the various componenes s ~hemineenense of Ensceric Piant.~ inecote pienes demoned for peak ined service, of fusi coot: and tet any other informetwa este concoming plant type, fusi used, fuel ossipises eviameeimeer operseed penne. i enrichment by type and quentny for the report period, and other phveisel and
, 11. For e atent samsped usih comannemons of fossil fuel essam, nucesar misem, operstmo cherecwreta of pient.
hveo, incomel coneuemon or gas-awtine aquement. esport each as e esperees l i Plant Nome Plant Nome Plant Nome ' Line let) fe) ~ if) No. 1 2 3 4 i r 5 6 7 P 8 9 10 11 l 12
- s :: s :s "
13 14 15 4
., 16 2 , # 17 s Y 18
; 233M5 19 AW 30 f 21 V 22 I
1 23 24 p +. 2e 27 I 28 1 2e 31 32 33 2 34 j- 36 as I . 37 i c l { as i
,, 3B t
. t 41 i
42 s 43 ' r 44 FERC PORM NO.1 (REVISED 12-81) Page 403 : ' " '- ' ' i ____ -_ ti _ _ _ _ _ . _ _ _ . . _ _ _ _ _ _ _ . _ _ _ . . _ _ _ _ _ _ _-, .___
Nome of Respondent Time Report is: Deteaf Report Year e.f Report (ti san Original (Mo. De, Yr) VEGsT (21 OA Resummision Dec. 31. ish STEAM ELECTRIC GENERATING PLANT STATISTICS (Large Plants) Average Annusi Heat Rates and Corresponding Net MWh Output for Most Efficient Generating Units
)
- 1. Report only the most efficient generating units (not to ex- 3. Report annual system heet rate for total conventional coed $0 in number) which were operated at annual capacity fac- steam-power generation and corresponding not generation (line tors of 50 percent or higher. List only unit type installations, i.e., 11).
single boiler serving one turbine-generstnr. It is not necessary to 4. Compute all heet rates on this page and also on pages 403 report single unit plants on this page. Do not include non- and 404 on the basis of total fuel bumed, including burner lighting condensing or automatic extraction-type turbine units operated and banking fuel. for proconsing steem and electric power generation.
- 2. Annual Unit Capacity Factor =
Net Generation-Kwh: Unit KW. Capacity (as included in plant total-line 5, p. 402) x 8,700 hours MW Une Plant Unit IO*"*f8'0' I"9 Btu Per Not Generation No. Name No. et Mexirnum Not MWh Thousand MWh Fuel Hydrogen Pressure > le) (by fel (d) (e) Ifp 1 2 3 4 5 6 7 8 9 10 Total System Steam Plants 11 liiii !!!1!!! fiil I I is INTENTIONALLY BLANK
)
7RC FORM NO.1 (REVISED I2 81) p g,404 Nex& age is 406
r O BLANK PAGE (Next Page is 406) 5 i
Nome of Respondent This Report is: Date af Report Yearif Report (1) GAn Original (Mo, De, Yr) ' VEGsT 12) O A Resutamion Dec. 31,19 < HYDROELECTRIC GENERATING PLANT STATISTICS (Large Plants)
- 1. Large plants are hydro plants of 10,000 Kw or more of in- 3. If net peak demand for 60 minutes is not available, give that stalled capacity (name plate ratings), which is available, specifying period.
- 2. If any plant is leased, operated under a license from the 4. If a group of employees attends more than one generating Federal Energy Re3ulatory Commission, or operated as a joint plant, report on line 11 the approximate average number of facility, indicate such facts in a footnote. If licensed project, give employees assignable to each plant.
project number. FERC Ucensed Project No. FERC Licensed Project No. I"' Plant Name Plant Name ts) Ibl Icl 1 Kind of Plant (Run-of River or Storage) 2 Type of Plant Construction (Conventional or Outdoor) 3 Year Orignally Constructed 4 Year Last Unit was Installed 5 T;tal Installed Capacity (Generator Name Plate Ratingsin MW) 6 Net Peak Demand on Plant-Megawatts (60 minutes) 7 Plant Hours Connected to Load 8 Net Plant Capability (in megawatts) 9 (a) Under the Most Favorable Oper. Conditions 10 (b) Under the Most Adverse Oper. Conditions 11 Average Number of Employees 12 Net Generation, Exclusive of Plant Use-KWh 13 Cost of Plant: 14 Land and Land Rights _ 15 Structures and improvements 16 Reservoirs, Dams, and Waterways aF M 17 Equipment Costs 18 Roads, Railroads, and Bridges M \F 19 TOTAL Cost (Enter Totaloflines 14 thru 18) \W 20 Cost per KW of installed Capacity (Line 5) 21 Production Expenses: 22 Operation Supervision and Engineering 23 Water for Power 24 Hydraulic Expenses 25 Electric Expenses 26 Misc. Hydraulic Power Generation Expenses 27 Rents 28 Maintenance Supervision and Enaineerina 29 Maintenance of Structures 30 Maintenance of Reservoirs, Dams, and Waterways 31 Maintenance of Electric Plant 32 Maintenance of Misc. Hydraulic Plant 33 Total Production Expenses / Tots / lines 22 thru 321 34 Expenses per Net KWh
) *iRC FORSI NO.1 (REVISED 12 82) Page 406
Name of Respondent This Report 1s: Date of Report Year of Report (1) Q An Original (Mo, Da, Yr) VEGr,T (2) OA Resubmission Dec.31,1981L HYDROELECTRIC GENERATING PLANT STATISTICS (Large Plants) (Continued)
- 5. The items under Cost of Plant represent accounts or com- classified as "Other Power Supply Expenses."
binations of accounts prescribed by the Uniform System of Ac- 6. Report as a separate plant any plant equipped with com-counts. Production Expenses do not include Purchased Power, binations of steam, hydro, internal combustion engine, or gas System Control and Load Dispatching, and Other Expenses turbine equipment. FERC Licensed Project No. FERC Licensed Project No. FERC Licensed Project No. Plant Name Plant Name Plant Name Line ! idi fel ill 1 2 3 4 5 6 7 8 9 10 11 12 13 14
, yh 15
.stv 16
,@P 17 A9' 18
\D' 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 1:ERC 1;ORM NO, I (REVISED l 2 81)
Page 407
Name of Respondent This Report is: Does of Report Yeeraf Report IMo, De, Yr) (1) Q4n Orionel VEGr,T 121 OA Resutmeian Dec.31,19_6h PUMPED STORAGE GENERATING PLANT STATISTICS (Large Plants)
- 1. Lar plants are pumped storage plants of 10,000 Kw or more of fnstalled capacity (name plate ratings),
- 4. If a group of employees attends more than one generating plant, report on line 8 the approximate average number of
)
- 2. If any plant is leased, operating under a license from the employees assignable to each plant.
Federal Energy Regulatory Commiesson, or operated as a joint 5. The items under Cost of Plant represent accounts or com-facility, indicate such facts in a footnote. Give project number. binations of accounts prescribed by the Uniform System of Ac-
- 3. If not peak demand for 60 minutes is not available, give that counts. Production Expenses do not include Purchased Power, which is available, specifying period. System Control and Load Dispatching, and Other Expenses classified as "Other Power Supply Expenses."
FERC Licensed Protect No, ment Name item _ la) Ib) 1 Type of Plant Construction (Conventional or Outdoor) 2 Year Originalfy Constructed 3 Year Last Unit was installed 4 Total Installed Ca acity (Generator Narr.e Plate Ratings in MW) 5 Net Peak Demand on Plant-Megawatts (60 minutes) 6 Plant Hours Connected to Load While Generating 7 Net Plant Capability (in megswatts): 8 Average Number of Employees 9 Generation Exclusive of Plant Use- KWh 10 Energy Used for Pumping - K Wh 11 Net Output for Load (line 9 minus line 10; - Kwh 12 Cost of Plant 13 Land and Land Rights 14 Structures and improvements 15 Reservoirs, Dams and Waterways .o 16 Water Wheels, Turbines, and Generators #' 17 Accessory Electric Equipment 4 18 Miscellaneous Powerplant Equipment AF Ig Roads, Railroads, and Bridges #' ' 20 TOTAL Cost (Enter Total oflines 13 thru 19) 21 Cost per KW of Installed Capacity (/ine 20 +/ine 4/ 22 Productinn Expenses 23 Operation Supervision and Engineering 24 Water for Power 25 Pumped Storage Expenses 26 Electric Expanses 27 Miscellaneous Pumped Storage Power Generation Expenses 28 Rents 29 Maintenance Supervision and Engineering 30 Maintenance of Structures 31 Maintenance of Reservoirs, Dams, and Waterways 32 Maintenance of Electric Plant 33 Maintenance of Miscellaneous Pumped Storage Plant 34 Production Exp. Before Pumping Eup. (Enter Total oflines 23 thru 33) 35 Pumping Expenses 36 Total Production Expenses (Enter Tors / of lines 34 and 351 37 Expenses per kWh (Enter result of line 36 divided _ byline 9 )
)
. .. _ .... ..., ...,-...-r,.,,,,,,
I
, Nerne cf Respondent Thas Report is: Dateif Report Yeer tf Leport (1) OAn Original (Mo,02, Yrl VEGE,T 121 O A Resubminion Dec. 31,19M PUMPED STORAGE GENERATING PLANT STATISTICS (Large Plants) (Continued)
- 6. Pumping energy (line 10) is that energy measured as input other source that individually provides more than 10 percent of to the plant for pumping purposes. the total energy used for pumping, and production expenses per
- 7. Include on line 35 the cost of energy used in pumping into net MWH as reported herein for each source described. Group the storage reservoir. When this item cannot be accurately com- together stations and other sources which individually provide puted, leave lines 35,36 and 37 blank and describe at the bottom less than 10 percent of total pumping energy. If contracts are of the schedule the company's principal sources of pumping made with others to purchase power for pumping, give the sup-power, the estimated amounts of energy from each station or plier, contract number, and date of contract.
FERC Licensed Protect No. FERC Licensed Progect No. FERC Licensed Project No. Plant Name Plant Name Plant Narne E' No. (c) id) (e) 1 2 3 4 5 6 7 8 9 10 11 12 A. 13 a# 14 d' 15
# 16
# 17 V
# 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34
. 35 36 37
. ITHC FOR\1 NO.1 (HEVISFD 12-81) Page 409 s
fanssie et nausenenne h Renest h: a,,, ,e n, ,, y,,,,,,,,,,,, g itn[An Onenas less,On, vri * (") VEGr.T (28 04 assun en m g ,g GENERATING PLANT STATISTICS (Small Plants) llB E 1. Smed generaeng planes are steem pienes of less C-i- - ' -, or operoemd as a joint fecany, and giwo a giwo that whsch is an=amhlm specNymg pened. 2 then 25.000 Kw: insomme comhuonon and gas turtene- concies sensement of the faces in a footnoes. N Econned 5. N any plant is equipped wish combenemons of 9 pienes, conwonnonal hydro s: tones and pumped esorage plants of less then 10.000 Kw ineessed cepecsty (name prosect, give presset number in fooenoes.
- 3. List planes appropnosely under subheadmes for ensom, hydro inesmos combuemon or ses antone equip.
ment, report each as a esperses plant. Howower, N the - pleen rating). essom, hydro, nudeer, snesmes combusson and gas tur- enheuet host from the gem matene is amhsed in a gegem
- '88 2. Designese any plant leased from others, operased bine pienes. For nucieer, see insouchon 11, page 403. antone regenerenwe food noter cycle, or for preheesed Q under a license from the Federal Energy Reguistory 4. N not peak demand for W nunuses is not suoilable, combuenon air in a boter, report as one plant.
E fr1 C inosened Prostucaen Empensee Capacity- Not Not Plant FuelCase """ Year Cost Kind Peek Generseen Name Pteen e, inicon. P'T me; m.,n, ,, pi,,, o,i,. C.,,,,. noen. T 57,,%,,, Casi .e pi no ,r u w o,,,,,,,,,,, " ""*'"*"** F"'8 '"'"''"
~ l'a 88*3 Iso neina use c.,,,;ey Esc's. Fue:
f,, ,3; ICI idi f*l Ifi fel thi til til gs; a 1 2 3 4 N 5 k 6 8 7 o 8 9 10 11 gs 13 14 i tp0 15 16 17 18 19 20 21 22 23 24 25 26 P 26 9 M
home of Respondent This Report is: Dateif Report Yeeraf Report n (t) @ An Oripnel (Mo, De, Yr) VEG&T (2) D A Reiubminion o.c. 31, is_fL4 CHANGES MADE OR SCHEDULED TO BE MADE IN GENERATING PLANT CAPACITIES Give below the information called for concerning changes in electric generating plant capacities during the year. A. Generating Plants or Units Dismantled, Removed from Service, Sold, or Leased to Others During Year
- 1. State in column (b) whether dismantled, removed from ser-vice, sold, or leased to another, Plants removed from service in- 2. In column (f), give date dismantled, removed from service, clude those not maintained for regular or emergency service. sold, or leased to another. Designate complete plants as such, Installed Capacity (in megawatts)
Une Name of Plant Disposition Date If Sold or Leased to Another. No. Hydro Give Name and Address of Steam (Other) (a) (b) (c) (d) Purchaser or Leesee (e) (1) fo) 1 2 3 4 5 6 7 B. Generating Units Scheduled for or Undergoing Major Modifications Estimated Dates of Une Name of Plant Character of Modification Instal:ed Plant Capacity Construction No. After Modrfication (*) (in megawatts) Start Completion Ibi (c) (d) (e) 8 9 10 11 12 13 14 C. New Generating Plants Scheduled for or Under Construction installed Capacity Estimated Dates of
~
,gg, p, g ,,, (in megewetts) Construction Un* Plant Nome and Location steem,intemaicombust.
No. lon.Geo Turtune. Nuclear, etc.) Initial' Ultimate Start Completiori (al (bl (c) (d) fe) (f) - 15 North Hartland Dam Hydro 4 5/53 4/55 16 North Hartland, Verfnont 17 18 19 20 21 D. New Units in Existing Plants Scheduled for or Under Construction Estimated Dates of Type * *
, Construction . .
Line Plant Name and Location (Hydro. Pumped Storege, Size of Unit Steem,Intemai combust. Unit Nos No.:- (in megawatts) ion, coe.Turtune, Nucleer, etc.) Start CompletioR la) . (b) ' (*) ,
. (c) ' *
% (d) - . II) ,J 22 23 24 25 26 27 28 FERC FORM NO.1 (REVISED 12 81) Page 411
, l
flameof Respondent This Resort lo: Doesof Report Yearof Resort (1) OAa crisiaal luo. De, Yrl im D A Re.unmienien one. at. se_ STEAM-ELECTRIC GENERATING PLANTS b
- 1. Include on this page steam-electric plante of 25,000 Kw the respondent le not the sole owner. If such property le leased (name plate reting) or more of inessmed capacity. frorn another company give name of lessor, date and term of
- 2. fleport the information celled for concommg generating loses, and annual rent. For any generstmg plant, other than a piente and equipment at and of year. Show unit type insteRetion, loosed plant or portion thwoof for which the respondent le not the boiler, and turtw, on some line. sole owner but which the respondent operates or shores in the
- 3. Esclude plant, the book cost of which is included in Ac- operation of, fumish a succinct statement emplewung the arrange-count 121, NonveWWy Moperfy. ment and giving particulars (detado) as to such mettere se percent
- 4. Designets any generating plant or portion thereof for which ownership by respondent, nome of co-owner, basis of sharing Beders linehMlr both retmos for the beder and the turbine generator of dualretedinsteentional Name of Plant Location of Plant Temper. ReW Man.
Number Kind of Fuel Rated and Method " *"
- and Year Pressure 8
InsteNed of Firing (in peig) f boders as IM/1GR>l (el (b) fel (d) fel til (9) 1 2 3 4 7 v A
/
12
/
13 14 , 15 l 16 i 17 l 18
- 19 l 20 21
} l 22 23 l 24 25 26 27 i 2. ) ! 30 ! 31 i 32 33 l
- 7ERC FORM NO. I (REVISED 12 81) Page 412
r . INDEX Schedule Page No. Accrued and prepaid taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . 258 259 Accumulated Deferred income Taxes . . . . . . . . . . . . . . . . . . . . . . . 224 268 273 Accumulated provisions for depreciation of common utility plant . . . . . . . . . . . . . . . . . . . . . . . . . . 356 utility plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213 utility plant (summary) . . . . . . . . . . . . . . . . . . . . . . . . . 200 Advances from associated companies . . . . . . . . . . . . . . . . . . . . . . . . 255 Amortization miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337 of nuclear fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 Application of Funds for the Year, Source and . . . . . . . . . . . . . . . . . . . 120 121 Appropriations of Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . 118 119 Associated companies advances from . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255 corporations controlled by respondent . . . . . . . . . . . . . . . . . . . . 103 mntrol over respondent . . . . . . . . . . . . . . . . . . . . . . . . 102 interest on debt to . . . . . . . . . . . . . . . . . . . . . . . . . . . 255 Attestation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 8alance sheet comparative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 113 notes to . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122 123 Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255 Capital Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253 expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253 installments received . . . . . . . . . . . . . . . . . . . . . . . . . . 251 liability for conversion . . . . . . . . . . . . . . . . . . . . . . . . . . 251 premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251 reacquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 subscribed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251 Changes important during year . . . . . . . . . . . . . . . . . . . . . . . . . . 108 109 Construction overheads, electric . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 overhead procedures, general description of . . . . . . . . . . . . . . . . . . . 212 work in progress - common utility plant . . . . . . . . . . . . . . . . . . . 356 work in progress - electric . . . . . . . . . . . . . . . . . . . . . . . . 210 work in proyess - other utility departments . . . . . . . . . . . . . . . . . . 200 Control corporations controlled by respondent . . . . . . . . . . . . . . . . . . . . 103 over respondent . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 security holders and voting powers. . . . . . . . . . . . . . . . . . . . . . 106 107 Corporation controlled by . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 incorporated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 CPA, background information on . . . . . . . . . . . . . . . . . . . . . . . . 101 CPA Certification. this report fntm . . . . . . . . . . . . . . . . . . . . . . . I il l FERC FORM NO. I iRl3'ISI:1112 MII Index 1
INDEX (Continued) . Schedule Page No. i 9 Deferred Credits, other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 debts, miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . 223 income taxes accumulated - accelerated amortization property . . . . . . . . . . , . . . . . . . . . . . . . 268 200 income taxes accumulated - other property . . . . . . . . . . . . . . . . . . 270-271 income taxes accumulated - other. . . . . . . . . . . . . . . . . . . . . .
- 272 273 income taxes accumulated - pollution control facilities . . . . . . . . . . . . . . 224 Definitions, this report form . . . . . . . . . . . . . . . . . . . . . . . . . ill Depreciation and amortization of common utility plant . . . . . . . . . . . . . . . . . . . . . . . . . 366 of electric plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213 334 336 Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 Discount on capital stock . . . . . . . . . . . . . . . . . . . . . . . . . . . 263 Discount - premium on long term debt . . . . . . . . . . . . . . . . . . . . . . 266 Distribution of salaries and wages . . . . . . . . . . . . . . . . . . . . . . . . 364 366 Dividend appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 119 Earnings, Retained . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 119 Electric energy account . . . . . . . . . . . . . . . . . . . . . . . . . . . 401 Environmental protection expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429 facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 428 Expenses electric operation and maintenance . . . . . . . . . . . . . . . . . . . . . 320 323 electric operation and maintenance, summary . . . . . . . . . . . . . . . . . . 323 unamortized debt . . . . . . . . . . . . . . . . . . . . . . . . . . . 266 Extraordinary property losses . . . . . . . . . . . . . . . . . . . . . . . . . 220 Filing requirements, this report form . . . . . . . . . . . . . . . . . . . . . . . iil Funds -
application of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120-121 sources of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120 121 General description of construction overhead procedure . . . . . . . . . . . . . . . . 212 General information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 General instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I iv Generating plant statistics hydroelectric (large) . . . . . . . . . . . . . . . . . . . . . . . . . . . 406 407 pumped storage (large) . . . . . . . . . . . . . . . . . . . . . . . . . . 408-409 small plants . . . . . . . . . . . . . . . . . . . . . . . .. . . . . 410 steam-electric (large) . . . . . . . . . . . . . . . . . . . . . . . . . . 402 403 Generating Plant changes in capacities . . . . . . . . . . . . . . . . . . . . . . . . . . 411 hydroelectric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414415 internal combustion engine and gas turbine . . . . . . . . . . . . . . . . . . . 420-421 pumped storage . . . . . . . . . . . . . . . . . . . . . . . . . . . 416-418 steam-electric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 412413 Hydro electric generating plant statistics , , . . . . . . . . . . . . . . . . . . 406 407 . Identification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 important changes during year . . . . . . . . . . . . . . . . . . . . . . . . . 108 100 income I, statement of by departments. . . . . . . . . . . . . . . . . . . . . . . . 114 117 statement of. for the year (see also revenues) . . . . . . . . . . . . . . . . . . 114 117 deductions interest on debt to associated companies . . . . . . . . . . . . . . . 337 l deductions, miscellaneous amortization . . . . . . . . . . . . . . . . . . . . 337 UFRC FOR\f NO I iRITISI.it i 2.SlI index 2 ,
r-Vermont Electric Generation and Transmission Dec, 3), 39g4 Pages 413-450 are intentionally blank l L
r b INDEX (Continued) Schedule Page No, income (continued) deductions, other income deduction . . . . . . . . . . . . . . . . 337 deductions, other interest charges . . . . . . . . . . . . . 337 incorporation information . . . . . . . . . . . . . . . . . . . . . . . . 101 installments received on capital stock . . . . . . . . . . . . . . . . . . . . . . . 251 interchange power . . . . . . . . . . . . . . . . . . . . . . . . . . . . 328 Interest charges. on debt to associated companies . . . . . . . . . . . . . . . . . . . 337 charges, other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337 charges, paid on long term debt, advances, etc. . . . . . . . . . . . . . . . . 255 investments non Jtility property . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 subsidiary companies . . . . . . . . . . . . . . . . . . . . . . . . . . 217 investment tax credits, accumulated deferred . . . . . . . . . . . . . . . . . . . . 264 Law, excerpts applicable to this report form . . . . . . . . . . . . . . . . . . . . iii iv List of schedules, this report form . . . . . . . . . . . . . . . . . . . . . . . . 24 Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256 Losses - Extraordinary property . . . . . . . . . . . . . . . . . . . . . . 220 Materials and supplies . . . . . . . . . . . . . . . . . . . . . . . . . 218 Meters and line transformers . . . . . . . . . . . . . . . . . . . . . . . . . . 427 Miscellaneous general expenses . . . . . . . . . . . . . . . . . . . . . . . . . 333 Notes to balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122 123 to statement of changes in financial position . . . . . . . . . . . . . . . . . . 122 123 to statement of income . . . . . . . . . . . . . . . . . . . . . . . . . 122-123 to statement of retained earnings . . . . . . . . . . . . . . . . . . . . . . 122 123 Nonutility property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 Notes payable - Advances from associated companies . . . . . . . . . . . . . . . . . 255 Nuclear fuel materials .
.. . . . . . . . . . . . . . . . . . . . . . . . . . . 201 Nuclear generating plant, statistics . . . . . . . . . . . . . . . . . . . . . . . . 402 404 Number of Electric Department Employees . . . . . . . . . . . . . . . . . . . . . 323 Officers and officers' salaries . . . . . . . . . . . . . . . . . . . . . . . . . . 104 Operating expenses - electric . . . . . . . . . . . . . . . . . . . . . . . . . . . 320 323 expenses - electric (summary) . . . . . . . . . . . . . . . . . . . . . . . 323 Other paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . 252 donations received from stockholders . . . . . . . . . . . . . . . . . . . . . 252 gains on resale or cancellation of reacquired capital stock . . . . . . . . . . . . . . . . . . . . . . . . . . 252 miscellaneous paid in capital . . . . . . . . . . . . . . . . . . . . . . . 252 reduction in par or stated value of capital stock . . . . . . . . . . . . . . . . . 252 Overhead, construction - electric . . . . . . . . . . . . . . . . . . . . . . . . 211 Peaks, monthly, and output . . . . . . . . . . . . . . . . . . . . . . . . . . 401 Plant, Common utility accumulated provision for depreciation . . . . . . . . . . . . . . . . . . . 356 acquisition adjustrTynts . . . . . . . . . . . . . . . . . . . . . . 356 allocated to utility departments . . . . . . . . . . . . . . . . . . . . . . 356
( FERC FORM NO.1 (RE)ISED I2 8lI Index 3 s
d INDEX (Continued) Schedule Page No. f Mant. Common utility (continued) completed cons.ruction not classified . . . . . . . . . . . . . . . . . . . . . 366 construction work in progress . . . . . . . . . . . . . . . . . . . . . . . - 366 exponess . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . 366 held for future use . .. . . . . . . . . . . . . . . . . . . . . . . . . 366 in service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 leased to others . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366 Mant date . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 212 334 336 401 427 Mont - electric accumulated provision for depreciation . . . . . . . . . . . . . . . . . . . . 213 construction work in progress . . . . . . . . . . . . . . . . . . . . . . . 210 held for future use . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 in service . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 202 204 leased to others . . . .. . . .. . . .. . . . . . . . . . . . . . . . 207 Mont - utility and accumulated provisions for depreciation amortiastion and depletion (summary) . . . . . . . . . . . . . . . . . . . . 200 Pollution control facilities, accumulated deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 Premium and discount on long term debt . . . . . . . . . . . . . . . . . . . . . . '266 Premiu n on capital stock . . . . . . . . . . . . . . . . . . . . . . . . . . . 261 Prepaid taxes . . . . .. .. . . . . . . . . . . . . . . . . . . . . . . . 268 269 Property - losses, extraordinary . . . . . . . . . . . . . . . . . . . . . . . . 220
' Pumped storage generating plant statistics . . . . . . . . . . . . . . . . . . . . . 408400 Purchased power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326 327 Reacquired capital stock . .. . . . . . . . . . . . . . . . . . . . . . . . . 250 Resequired long term debt . . . . . . . . . . . . . . . . . . . . . . . . . . 256 Receivers
- certificates . . . . . . . . . . . . . . . . . .. . . . . . . . . . 256 Reconciliation of reported not income with taxable income from Federalincome taxes . . . . . . . . . . . . . . . . . . . . . . . . 261 Regulatory commission expenses deferred . . . . . . . . . . . . . . . . . . . . . 223 Regulatory commission expenses for year . . . . . . . . . . . . . . . . . . . . . 350 361 Research, development and demonstration activities . . . . . . . . . . . . . . . . . . 362 363 Retained Earnings amortization reserve Federal . . . . . . . . . . . . . . . . . . . . . . . . 119 appropriated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 119 statement of, for the year. . . . . . . . . . . . . . . . . . . . . . . . . 118 119 unappropriated . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 119 Revenues - electric operating . . . . . . . . . . . . . . . . . . . . . . . . . 301 Salaries and wages directors fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 distribution of . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364 355 officers' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 Seles of electricity by rate schedules . . . . . . . . . . . . . . . . . . . . . . . 304 Sales - for resale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310 311 Salvage - nucleet fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 Schedules. this report form . .. . . . .- . . . . . . . . . . . . . . . . . . . 24 Securities exchange registration . . . . . . . . . . . . . . . . . . . . . . . . . . 250 ;
holders and voting powers . . . . . . . . . . . . . . . . . . . . . . . . 106 107 i i [ t 7RC FORM NO. I IRB ISH) i 2 Mi1. Inden 4 . ,- - . L
r 6* INDEX (Continued) Sources of funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120 121 Statement of changes in financial position . . . . . . . . . . . . . . . . . . . . . 120 121 Statement of income for the year . . . . . . . . . . . . . . . . . . . . . . . . 114 117 Statement of retained earnings for the year . . . . . . . . . . . . . . . . . . . . . 118 119 Steam electric generating plant statistics . . . . . . . . . . . . . . . . . . . . . . 402404 Stock liability for conversion . . . . . . . . . . . . . . . . . . . . . . . . . 251 Substations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425 Supplies - meterials and . . . . . . . . . . . . . . . . . . . . . . . . . . . 218 Taxes accrued and prepaid. . . . . . . . . . . . . . . . . . . . . . . . . . . 258 259 charged during year . . . . . . . . . . . . . . . . . . . . . . . . . . . 258 259 on income, deferred and accumulated. . . . . . . . . . . . . . . . . . . . . 224 268 273 reconciliation of not income with taxable income for . . . . . . . . . . . . . . . . 261 Transformers line - electric . . . . . . . . . . . . . . . . . . . . . . . . . . 427 Transmission lines added during year . . . . . . . . . . . . . . . . . . . . . . . . . 424 lines statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422 423
. of electric for or by others . . . . . . . . . . . . . . . . . . . . . . . . 332 Unamortired debt discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256 debt expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256 premium on debt . . . . . . . . . . . . . . . . . . . . . . . . . . . 256 l
!.( l 1 i f f FERC FORM NO. I (RE\ ISED 12 MI) Index 5 (
,-i,, . - , . . . - , ,-
I i FINANCIAL STATEMENTS AND AUDITORS' REPORT TAUNTON MUNICIPAL LIGHTING PLANT December 31, 1984 Alexander Grant; ; l l I l
t ) ) FINANCIAL STATEMENTS AND AUDITORS' REPORT TAUNTON MUNICIPAL LIGHTING PLANT December 31, 1984 b i
? CONTENTS Page AUDITORS' REPORT 3 FINANCIAL STATEMENTS BALANCE SHEET 4 ) S STATEMENT OF EARNINGS STATEMENT OF SURPLUS 6 STATEMENT OF CHANGES IN FINANCIAL POSITION 7 ) 8 NOTES TO FINANCIAL STATEMENTS SUPPLEMENTAL INFORMATION D AUDITORS' REPORT ON SUPPLEMENTAL INFORMATION 13 UTILITY PLANT 14 OPERATING EXPENSES 16 9 5 l
)
) Alexander Grant & COMPANY MEMBER FIRM GRANT THORNTON INTERN ATION AL CERTIFIED PUBLIC ACCOUNTANTS ) Municipal Light Commission 1; of the City of Taunton 3 Taunton, Massachusetts We have examined the balance sheet of Taunton Municipal Lighting Plant (a department of the City of Taunton) of as of December 31, 1984, and the related statements the 9 earnings, surplus and changes in financial position for year then ended. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. As discussed in note F, Taunton Municipal Lighting Plant records pension expense based on a formula determined by the Town; whereas, generally accepted accounting principles require the use of actuarial methods in determining annual pension expense. In our opinion, except for the effect on the financial statements of the accounting policy discussed in the second paragraph, the financial statements referred to above present fairly the financial position of Taunton Municipal Lighting y Plant at December 31, 1984, and the results of its operations and changes in its financial position for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Y
> hf =^N Boston, Massachusetts March 14, 1985 )
99 HIGH STREET BOSTON, MA 02110 (617)357-5787
/ l
,2 N l Taunton Municipal Lighting Plant ; BALANCE SHEET i December 31, 1984 D ASSETS UTILITY PLANT - AT COST Plant in service $57,662,324 b Less accumulated depreciation (note A2) 27,824,183 Net utility plant in service $29,838,141 Construction work in progress (note D) 3,437,120 3 Total utility plant 33,275,261 DEPRECIATION FUND 3 Cash and cash equivalents 5,025,233
- CURRENT ASSETS
- Cash (note E) . 1,236,244 Customer deposits (note E) 3* Principal fund 183,608 Interest fund 34,921 Accounts receivable 5,899,854 Less allowance for doubtful y.) receivables 476,780 5,423,074 Materials and supplies inventory (note A4) 2,962,020 Prepaid insurance 28,272 m
Total current assets 9,868,139
$48,168,633 O
g The accompanying notes are an integral part of this statement.
~-
9 4
i
]
/. - ij k
y LIABILITIES AND SURPLUS SURPLUS Appropriated surplus I Loans repayment $11,132,000 d Construction repayment 32,434 11,164,434 Unappropriated surplus 10,201,858 Total surplus $21,366,292 LONG-TERM DEBT (note C) Bonds payable 22,055,710 Less current maturities 525,000 Total long-term debt 21,530,710 CURRENT LIABILITIES Accounts payable 2,663,323 Customer deposits 183,608 Current maturities of long-term debt 525,000 Accrued liabilities Interest 737,319 Compensated absences 1,080,403 Payroll 81,978 Total current liabilities 5,271,631 COMMITMENTS (note D) Also Ag N Card $48,168,633 l l 1 TI APERTURE CARD l l 8508120619--/ _ ,
1 Taunton Municipal Lighting Plant STATEMENT OF EARNINGS Year ended December 31, 1984 ) Operating revenues Sales of electricity Commercial and industrial $15,984,368 Residential 12,060,350 ) Sales for resale (note D) 16,379,380 Municipal 1,822,761 $46,246,859 Other operating revenues 83,613 Total operating revenues 46,330,472 ) Operating expenses Power production 33,742,151 Transmission and distribution 1,293,630 Customer accounts 673,354 Administrative and general 3,192,823 N Depreciation (note A2) 2,204,616 Total operating expenses 41,106,574 Earnings from operations 5,223,898 I Other income (expense) Interest income 299,002 Interest expense on bonds (1,717,672) Other 24,046 Total other income (expense) (1,394,624) g NET E ARNINGS BEFORE PROVISION FOR PAYMENT IN LIEU OF TAXES 3,829,274 Provision for payment to the City of Taunton in lieu of taxes (note B) 1,030,000 p EXCESS NET EARNINGS AFTER PAYMENT TO CITY OF TAUNTON $ 2,799,274 D y The accompanying notes are an integral part of this statement.
> 5
T9unton Municipal Lighting Plant STATEMENT OF SURPLUS Year ended December 31, 1984 Appropriated Surplus Loans Construction Unappropriated Repayment Repayment Surplus 1 Balance at January 1,1984 $10,637,000 $32,434 $ 7,897,584 ADD OR (DEDUCT) Transfer from unappro-I priated surplus of bond payments during year 495,000 (495,000) Excess net earnings after payment to City of Taunton 2,799,274 { Balance at December 31, 1984 $11,132,000 $32,434 $10,201,858 ) ) ) 1
) The accompanying notes are an integral part of this statement.
6
Taunton Municipal Lighting Plant i STATEMENT OF CHANGES IN FINANCIAL POSITION Year ended December 31, 1984 Sources of working capital From operations Net earnings before payment in lieu of taxes $3,829,274 Charges (credits) to earnings not using i (providing) working capital Depreciation of utility plant (note A2) 2,204,616 Amortization of bond premium (3,354) Funds from operations before payment in lieu'of taxes 6,030,536 Provision for payment to City in lieu of taxes (note B) 1,030,000 Net working capital provided from operations 5,000,536 ) Applications of working capital f Current maturities of long-term debt (note C) 525,000 I Utility plant additions - net 2,326,823 Increase in depreciation fund 1,815,033 Total applications of working capital 4,666,856 INCREASE IN WORKING CAPITAL 333,680 Working capital at January 1, 1984 4,262,828 Working capital at December 31, 1984 $4,596,508 Changes in components of working capital Increase (decrease) in current assets Cash $ (482,582) Customer deposits 21,187 Accounts receivable - net 282,675 I Inventory 254,672 Prepaid insurance - (8,277) 67,675 (Increase) decrease in current liabilities Accounts payable 488,257
)
Customer deposits (15,250) Current maturities of long-term debt (30,000) Accrued liabilities (177,002) 266,005 INCREASE IN WORKING CAPITAL $ 333,680
)
The accompanying notes are an integral part of this statement.
) 7
)
Taunton Municipal Lighting Plant NOTES TO FINANCIAL STATEMENTS December 31, 1984
)
NOTE A -
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES A summary of Taunton Municipal Lighting Plant's ("the Plant's") significant accounting policies consistently applied in the
) preparation of the accompanying financial statements follows.
- 1. Rates Rates charged by the Plant are not subject to the approval of regulatory agencies. Pursuant to state laws, rates
) earnings before must be such that the resulting net payment to the city, less bond payments, do not exceed 8%
of the cost of utility plant. During 1984, the Plant's earnings, less bond payments, amounted to 5.8% of utility l plant. D
- 2. Depreciation Pursuant to state laws, depreciation is calculated as a percentage of depreciable property at January 1.
Depreciation was computed at 4% of the cost of depreciable B property for 1983 and 1984. The amount transferred from the operating fund to the depreciation fund during the year was $4,369,616. Depreciation fund cash is used in accordance with state I laws for replacements and additions to the electric plant in service.
- 3. Pension Plan Substantially all employees of the Plant are covered by a contributory psnsion plan administered by the City of Taunton in conformity with State Retirement Board requirements. In addition, the Lighting Plant has a separate Employees Retirement Trust for the financing of future pension premiums. At December 31, 1984, the Retirement Trust had net assets of approximately
$2,463,776. The Plant contributed approximately
$1,512,378 for pensions in 1984, which included $700,000 to the separate Retirement Trust.
- 4. Inventory Materials and supplies inventory is carried at cost, principally on the average cost and first-in, first-out methods.
8
Taunton Municipal Lighting Plant NOTES TO FINANCIAL STATEMENTS - CONTINUED December 31, 1984 NOTE B - CONTRIBUTION TO THE CITY OF TAUNTON IN LIEU OF TAXES By vote of the Municipal Light Commission, the Plant contributed
$1,030,000 in 1984 to the City of Taunton in lieu of taxes. All
> contributions to the City are voted by the Municipal Light Commission and are voluntary. NOTE C - LONG-TERM DEBT t Long-term debt at December 31, 1984, is comprised of the following: Electric loan, Act of 1969 Interest rate - various rates from 7% to 8.5% dated February 1, 1976. Interest payable February 1 and I August 1. Due serially from February 1, 1977 to February 1, 2006 $21,840,000 Unamortized premium 70,710 Electrin loan, Act of 1963 ) Intereat rate 3.1% dated August 15, 1965. Interest payable August 15 and February 15. Due serially from August 15, 1966 to August 15, 1985 45,000 Electric loan, Act of 1963 ) Interest rate 3% dated January 1, ' 1965. Interest payable January 1 and July 1. Due serially from January 1, 1966 to January 1, 1985 100,000 22,055,710 ) Less current maturities 525,000 Total long-term debt $21,530,710 )' ). 9
4 Taunton Municipal Lighting Plant NOTES TO FINANCIAL STATEMENTS - CONTINUED December 31, 1984 NOTE C - LONG-TERM DEBT - Continued Annual maturities of long-term debt are: ) 7% - 8.5% 3% Bonds 3.1% Bonds Bonds Total 1985 $100,000 $45,000 $ 380,000 $ 525,000 1986 410,000 410,000 1987 445,000 445,000 ) 1988 480,000 480,000 1989 520,000 520,000 1990-2006 19,605,000 19,605,000 Bond premium 70,710 70,710
$100,000 $45,000 $21,910,710 $22,055,710
) NOTE D - COMMITMENTS Interconnection Agreement ) The Ci ty' o f Taunton, acting by vote of its Municipal Lighting Plant Commission, has entered into an agreement with Montaup Electric Company ("Montaup"), dated July 31, 1970, as amended, 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 is for a period of twelve years following the commencement of operations of Unit No. 9 on December 1, 1975. Under the interconnection agreement, the City agrees to sell and Montaup agrees to purchase all capacity of Unit No. 9 not utilized by the City with a maximum not to exceed 95 megawatts )_ in the first year of operation and on a declining scale in subsequent years. It is estimated that by 1986 or 1987 Montaup will have purchased the maximum capacity allowed by law for sale to that utility. The Plant credited to sales for resale
$15,104,852 of capacity and energy charges billed to Montaup Electric Company in 1984 for its share of power under the ) interconnection agreement. This agreement includes a provision that Taunton will purchase 8.2163% of the capacity and associated energy from Montaup's Somerse t No. 6 generating unit for the period November 1, 1978 through October 31, 1984, and 1.7123% of the capacity and associated energy from the Canal No.
2 generating unit, 50% of which is owned by Montaup, for the
) period November 1, 1978 through October 31, 1982. The agreement for capacity and associated energy purchases from Canal No. 2 has been extended through October 31, 1987.
10
) Taunton Municipal Lighting Plant NOTES TO FINANCIAL STATEMENTS - CONTINUED December 31, 1984 ) NOTE D - COMMITMENTS - Continued Entitlements ) The Plant is a joint owner of the Seabrook Units 1 and 2 nuclear generating station located in Seabrook, New Hampshire. The lead participant in the project is Public Service Company of New Hampshire (PSNH). The Plant's ownership share is .10034%. Expenditures of $3,029,348 through December 31, 1984, are included in the construction work in progress account. Several ) participants in the Seabrook Units have been successful in effectively cancelling Unit 2. The Plant is unable to predict whether any action will be ordered by the New Hampshire Public Utilities Commission or what effect such action, or any financing difficulties of PSNH or any other participant, may have on the cost of completion of Unit 1. ) Assuming that construction will continue, it is estimated that Unit 1 will be completed in April, 1987. The Plant's latest estimates put its share of the cost to complete Unit 1 at approximately $1,000,000. ) NOTE E - CASH Municipal Lighting Plant cash is in the custody of the City of Taunton Treasurer and is commingled with other city funds. The ) City maintains the cash in interest bearing accounts and credits the interest earned each year to the Plant's account. NOTE F - DEPARTURE FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ) Pension expense is not recorded in accordance with generally accepted accounting principles which require, as a minimum, an annual provision equal to the total of normal costs of present employees under the plan, an amount equivalent to interest on any unfunded prior service costs, and a provision for vested benefits. ) Instead, the Plant's pension expense is based on the current year contributions to the City's retirement fund and the Plant's Retirement Trust. The contribution to the City's retirement fund is based on the projected benefits to be paid during the year, while the contribution to the Retirement Trust is a straight-line funding of $350,000 per year for ten years. Due to the i) availability of funds, the Plant contributed $700,000 to the Retirement Trust in 1984. The effect on the accompanying financial statements of this departure from generally accepted accounting principles has not been determined.
)
i SUPPLEMENTAL INFORMATION ) )
) ) ) ).
AUDITORS' REPORT ON SUPPLEMENTAL INFORMATION Taunton Municipal Lighting Plant 4 Our examination was made for the purpose of forming an opinion on the basic financial statements taken as a whole of I Taunton Municipal Lighting Plant for the year ended December 31, 1984, which is presented in the preceding section of this report. The supplemental information presented ) hereinafter is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures ) applied in the examination of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. ) Wy-= M f e ( ) Boston, Massachusetts March 14, 1985 )
)
f }
- '~ TQunton Municipal Lighting Plant m
l UTILITY PLANT i Year ended December 31, 1984 Balance January 1, 1984 Utility plant in service Steam production plant Land and land rights $ 245,509 Structures and improvements 5,805,070 Boiler plant equipment 14,805,610 Turbo-generator units 13,802,920 Accessory electric equipment 2,563,912 Miscellaneous power plant equipment 427,268 Total steam production plant 37,650,289 Other production plant Fuel holders, producers and accessories 507,964 Generators 83,407 Accessory electric equipment 402,423 Total other production plant 993,794 Transmission plant Land and land rights 217,807 Clearing land and rights of way 28,901 Structures and improvements 129,489 Station equipment 2,333,541 Towers and fixtures 859,446 Poles and fixtures 304,605 Overhead conductors and devices 309,322 Underground conduit 3,104 Underground conductors 6,113 Total transmission plant 4,192,328 Distribution plant Land and land rights 189,056 Structures and improvements 103,341 Station equipment 1,686,072
' Poles, towers and fixtures 1,984,895 Overhead conductors and devices 1,897,307 Underground conduit 1,398,681 Underground conductors and devices 1,483,328 Line transformers 1,169,779 Services 280,778 Meters 1,020,182 Street lighting and signal system 620,974 Total distribution plant 11,834,393 Forward 54,670,804
Avail.bb Oa
@ Aperture Card 1
'fI APERTURE Accumulated Book Balance Depreciation Value December 31, December 31, December 31, Additions Retirements 1984 1984 1984
$ 245,509 $ 245,509 i $ 868,972 6,674,042 $ 3,622,677 3,051,365 487,888 15,293,498 7,045,246 8,248,252 84,046 13,886,966 4,899,816 8,987,150 1,902 2,565,814 1,762,481 803,333 3,154 430,422 119,008 311,414 1,445,962 39,096,251 17,449,228 21,647,023 507,964 156,654 351,310 83,407 25,669 57,738 402,423 124,550 277,873 993,794 306,873 686,921 217,807 217,807 28,901 28,901 129,489 29,192 100,297 2,994 2,336,535 550,462 1,786,073 859,446 261,069 598,377 304,605 77,737 226,868 309,322 68,628 240,694 3,104 749 2,355 6,113 1,120 4,993 2,994 4,195,322 988,957 3,206,365 I
(37,370) 151,686 151,686 2,800 106,141 99,020 7,121 6,546 1,692,618 1,479,240 213,378 92,905 2,077,800 1,764,331 313,469 116,700 2,014,007 971,799 1,042,208 22,551 s. 1,421,232 1,091,202 330,030 27,063 1,510,391 930,098 580,293 75,070 $13,062 1,231,787 763,126 468,661 20,647 301,425 83,041 218,384 45,453 1,065,635 720,453 345,182 50,575 671,549 363,749 307,800 422,940 13,062 12,244,271 8,266,059 3,978,212 1,871,896 13,062 56,529,638 27,011,117 29,518,52L . . 850812 0 619_ oy
"# Taunton Municipal Lighting Plant UTILITY PLANT - CONTINUED Year ended December 31, 1984 Balance January 1, 1984 Forwarded $54,670,804 General plant Land and land rights 35,691 Structures and improvements 281,965 Office furniture and equipment 122,304 Transportation equipment 562,092 Stores equipment -
1,740 Tools, shop and garage equipment 13,093 Laboratory equipment 14,888 Power operated equipment 27,271 Communication equipment 86,858 Miscellaneous equipment 15,649 Total general plant 1,161,551 Less contribution in aid of construction (64,986) Total utility plant in service 55,767,369 Construction work in progress 3,030,752
$58,798,121
, 15
" -o Accumulated Net Book Balance Depreciation Value December 31, December 31, December 31, Additions Retirements 1984 1984 1984
$1,871,896 $13,062 $56,529,638 $27,011,117 $29,518,521 35,691 35,691 281,965 246,757 35,208 28,170 150,474 67,434 83,040 24,411 16,460 570,043 413,700 156,343 1,740 1,740 13,093 13,093 14,888 11,492 3,396 27,271 17,298 9,973 86,858 27,929 58,929 15,649 13,623 2,026 52,581 16,460 1,197,672 813,066 384,606 (64,986) (64,986) 1,924,477 29,522 57,662,324 27,824,183 29,838,141 406,368 3,437,120 3,437,120 $2,330,845 $29,522 $61,099,444 $27,824,183 $33,275,261 Also Available On Aperture Card , 1 TI APERTURL CARD l ( l 8508120 619 -oy 1
Taunton Municipal Lighting Plant OPERATING EXPENSES Year ended December 31, 1984 f POWER PRODUCTION EXPENSES Operation Supervision and engineering $ 251,367 Fuel 17,911,817 ) Labor and expenses 940,734 $19,103,918 Maintenance Supervision and engineering 81,281 Structures 46,408 Boiler plant 994,781 Electric plant 731,272 ) Miscellaneous 18,711 1,872,453 Purchased power 12,765,780 Total power production expenses 33,742,151 ) TRANSMISSION AND DISTRIBUTION EXPENSES Operation Supervision and engineering 205,183 Labor 161,929 Supplies and expenses 21,601 Meter expenses 31,883 ) Customer installation 1,345 Street lighting and signal systems 31,832 Miscellaneous 149,434 603,207 Maintenance Lines - electric 498,840 Lines - steam 939 ) Street lighting and signal systems 36,852 Meters 54,118 Structures and equipment 15,941 Line transformers 29,433 Station equipment 43,592 Miscellaneous 10,708 690,423 ) Total transmission and distribution expenses 1,293,630 Forward 35,035,781
) )
) Taunton Municipal Lighting Plant OPERATING EXPENSES - CONTINUED Year ended December 31, 1984 f
$35,035,781 Forwarded CUSTOMER ACCOUNTS EXPENSES Operation Meter reading labor and expenses $ 105,527 f Accounting and collecting expenses 505,715 Uncollectible accounts 42,000 Advertising expense 20,112 i
Total customer accounts expenses 673,354 ADMINISTRATIVE AND GENERAL EXPENSES Operation Administrative and general salaries 312,120 Office supplies and expenses 139,918 Outside services employed 84,107
, Property insurance 102,657 Injuries and damages 182,577 Employee pensions and benefits 2,129,569 Miscellaneous general expenses 51,224 Transportation expenses 111,938 Regulatory commission expense 18,426 3,132,536 g
Maintenance 60,287 General plant Total administrative and 3,192,823 p general expenses 2,204,616 DEPRECIATION EXPENSE
$41,106,574 D
80 17
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Exact Legal Name of Respondent . Report is For Fiscal Year Ending -
'IOWN OF HUDSON LIGTr AND POWER DEPr.* DECEEFR 31, 1984
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Form Approved OMB No.1905-0136 Expires 4-30-85 u.s. osPARTMENT OF ENERGY Washington. D C. 20585 INSTRUCTIONS FOR FILING ANNUAL REPORT OF PUHl.IC El.ECTRIC UTil.ITIES GENERAL INFORMATION
- 1. Purpose This form is a requirement (P.L. 93-275). It is designed to collect information on municipal electrical utilities owned or operated by municipalities in the United States and its possessions.
Municipality is defined as a city, county, irrigation district, drainage district, or other political subdivision as agency of a State competent under the laws thereof to carry on the business of developing, transmit-f ting, utilizing or distributing power. [41 Stat 1064; 49 Stat 838; 16 U.S.C. 796(7)]. II. Who Must Submit Each municipality engaged in the generation, transmission, or distribution of electricity, and which has been notified by the Department of Energy, must submit this form. lit. What and Where to Submit (a) Submit an original and three copies of Form EIA-412, together with any required attachments, to: r U.S. Department of Energy Energy information Adminestration (El.54U Forrestal Budding. Mad Station BE-07') Washington, D.C. 20585 (b) If you publish financial and operating statements of your utility department, attach three copies of
, such statements to this report.
(c) Retain a copy of this form for your files. IV. When To Submit Submit this form on or before the last day of the third month following the close of your established fiscal year. For example, if your fiscal year ends March 31, this report is due on or before June 30. V. Confidentiality None of the information reported on this form is deemed to be confidential, since it is reported by public bodies and concerns their exercise of public functions. VI. Sanctions The tirnely submission of Form EIA-412 by a utihty required to report is a mandatory requirement Late filing, failure to file, failure to keep records, or failure otherwise to comply with these instructions may result in criminal fines. civil penalties, and other sanctions as provided by law. EI A 412 (6-82) Page i
r GENERAL INSTRUCTIONS
- 1. Account numbers and titles used in this form relate to account numbers and titles in the Uniform System of Accounts Prescribed for Public Utilities and Licensees. The use of the Uniform System of Accounts for the reporting of data by municipalities is preferred but not required, subject to the Provi-sions of the Federal Power Act (18 CFR 101). .
fl. Use Part XXVI, Footnote Data, to footnote any entry made to Parts lil through XXV.
. 111 . Enter amounts in whole numbers only.
IV. Indicate negative amounts by enclosing the figures in parentheses ( ). V. When making revisions, resubmit only those pages that have been changed from the original. Include with your resubmission Part I, Identification, and Part !!. Attestation. VI. Enter "Not Applicable" where the information requested is not applicable to your system. Vll. Provide a supplemental statement further explaining accounts or parts as necessary. Attach the sup-( plemental statement to the page being supplemented. Provide the appropriate identification informa-tion, including the title of the page and the page number supplemented. DEFINITIONS J (a) Advances from Municipality - The amount of loans and advances made by the municipality or its other departments to the utility department when such loans and advances are subject to repayment but not subject to current settlement. (b) Advances to Municipality - The amount of loans and advances made by the utility department to the municipality or its other departments when such loans or advances are subject to repayment but not subject to current settlement. (c) Authorized Cash Distribution to Municipality - The authorized cash distributions to the municipality from the eamed surplus of the utility department. (d) Constructive Surplus or Deficit - The amounts representing the exchange of services, supplies, etc., , between the utility department and the municipality and its other departments without charge or at a reduced charge. Charges to this account include utility and other services, supplies, etc., furnished by the utility department to the municipality or its other departments without charge, or the amount of the , reduction if furnished at a reduced charge. Credits to the account consist of services, supplies, office space, etc., furnished by the municipality to the utility department without charge or the amount of the reduction if furnished at a reduced charge. (e) Electric Plant Acquisition Adjustment - The difference between (a) the cost to the respondent utility of electric plant acquired as an operating unit or system by purchase and (b) the depreciated original cost, estimated if not known, of such property. (f) Extraordinary Income (Deductions) - Those items related to transactions of a nonrecurring nature which are not typical or customary business activities of the utility and which would significantly distort the current year's net income if reported other than as extraordinary items. (g) Investment of Municipahty - The investment of the municipahty in its utility department, when such in-vestment is not subject to cash settlement on demand or at a fixed future time. Include the cost of debt-l free utihty plant constructed or acquired by the municipality and made available for the use of the utility department, cash transferred to the utility department for working capital, and other expenditures of an investment nature. I fl A412 t6.X2) Pagr is i
DEFINIT 11N 3 (Continued) (h) Municipality - (As defined in section 3, paragraph (7) of the Federal Power Act, P.L. 66-280 as amended) A city, county, irrigation district, drainage district, or other political subdivision or agency of a State competent under the laws thereof to carry on the business of developing, transmitting, utilizing, or distributing power (41 stat.1064; 49 stat. 838; 16 U.S.C. 796(7)l. (i) Payables to Municipality - The amounts payable by the utility department to the municipality or its other departments which are subject to current settlement. (j) Receivables from Municipality - All charges by the utility department against the municipality or its other departments which are subject to current settlement. (k) Retained Earnings - The balance, either debit or credit, of appropriated or unappropriated retained earnings of the utility department arising from earnings. SPECIFIC INSTRUCTIONS Item Instruction All Refer to the form. All items are self-explanatory. I l'I A ll2 (6-82) Page iii
ANNUAL REPORT OF PUBLIC El.ECTRIC UTILITIES PART 1: IDENTIFICATION 02 Report is for Fiscal Year Ending (Afo, Da, Yr) 01 Exact Legal Name of Respondent Town of Hudson Licht & Power Deot . necomhor 11. 19Rd 03 Previous Name and Date of Change (if name changed during year) @ 04 Address of Principal Business Office at End of Year (Street, City, State, Zip Code) 49 Fo re n t- Ave. Hti d n n n . MA 01749 OS Name of Contact Person 06 Title of Contact Person Hnnhmar Ma n n 'em v Hn rn t-07 Address of Contact Person (Street, City, State, Zip Codel AC pm-n e +- ~n,ra undenn Mn n17a0 09 This Report is 10 Date of Report 08 Telephone of' Contact Person, including' D) 0 An Onginal (2) O A Hesubmission (Afo, Da, Yr)
^'ea Code 617-568-8736 3/31/85 11 State the Classes of Utility and Other Services Furnished by Respondent During the Year Municipal - Lighting and Power .
PART ll: CERTIFICATIO.% The undersigned certifies that he/she has examined the accompanying report; that to the best of his/her knowledge, information, and belief, all statements of fact contained in the accompanying report are true, and the accompanying report is a correct statement of the business and affairs of the above named respondent in respect to each and every matter set forth therein during the calendar or other established fiscal year stated above. 03 Signature 04 Date Signed 01 Name (Aro, Do, Yrj Horst Huehmer 02 Titic 4/1/85 Manager Title 18, U.S.C.1001, makes it a crime for any person knowingly and willingf y to make to any Agency or Depart-ment of the United states any f alse, fictitious or fraudulent statements as to any matter within its jurisdiction. Pace 1 I EI A412 m M2) i i
h Nme of Respondent This Report is. Date of Report Heport Year End.ng mp An Orig nal No De, Yr) W o Oa Yr) Hudson Light & Power Dept. m O A Reswt>meoa 3/31/85 12/31/84 PART lil: BALANCE SHEET - END OF YEAR Some of the accounts listed below are defined on page is. Refer to the U.S of A 'or those other accounts not defined on page n Assets and Other Deo.ts Leaoilities and Other Credits # (a} lb) (a) (DJ 33 INVESTMENT OF 1 UTILITY PL ANT MUNICIPALITY & SURPLUS 2 Utility Plant S5,858,631 34 investment of Municipality S 52,361 3 (Less) Accumulated Provision for 35 Constructive Surplus or Deficit None Depreciation & Amortization 36 Retained Earnings 10,094,341 4 Net Utility Plant (Line 2 /ess hne 31 5.RSR.611 TOTAL Investnwnt & Surplus 37 (Enter Total of lines 34 thru 36) 10,146,704 5 INVESTMENTS 6 Nonutility Property (Less Accum. 38 LONG TERM DEBT Provision for Depreciation and 39 Bonds Amortization: $ ) 40 Advances from Munic cality 7 Advances to Municipality 41 Other Long-Term Debt 8 investments & Special Funds 42 Unamort. Premium on Long Term Debt TOTAL investments (Enter Totat 43 Unamortized Discount on Long Term 9 of lines 6 thru 8) None Debt-Debit TOTAL Long Term Debt (Enter Tntal 10 CURRENT AND ACCRUED ASSETS 44 of lines 39 thru 431 None 11 Cash & Working Funds 1.211.207 45 CURRENT AND ACCRUED 13 Temporary Cash Investments 1.344.598 LI ABILITIES 13 Notes & Accounts Receivable 4G Warrants Payable None (Less Accum. Provision for 47 Notes and Accounts Payable 258,591 Uncollected Accounts: $ ) 1,518,516 48 Payables to Mun;cipality None 14 Receivables from Municipahty None 49 Customer Deposits 150.003 15 Materials & Supplies 922,7DS 50 Taxes Accrued Nnno 16 Prepayments 238,092 51 Interest Accrued None 17 Misc. Current & Accrued Assets 6,082 52 Misc. Current & Accrued Liabilities 91.?41 TOTAL Current & Accrued Assets TOTAL Current & Accrued Liabilities 18 (Enter Total of lines 11 thru 17) ' ' ~ 459,835 - 53 (Enter Total of lines 46 thru 52) 19 DEFERRED DEBITS 54 DEFERRED CREDITS 20 Unamortized Debt Expense 55 Customer Advances for Construction 23,050 21 Extraordinary Property Losses 56 Other Deferred Credits 256,726 22 Miscellaneous Deferred Debits 'M 4Rc 57 Unamortized Gain on Reacquired Debt None 23 Unamortized Loss on Reacquired Debt TOTAL Deferred Credits (Enter Total TOTAL Deferred Debits 58 of lines 55 thru 57) 279,776 24 (Enter Total of lines 20 thru 23) 36,485 25 59 OPERATING RESERVES 26 60 Property insurance Reserve 27 61 Injuries and Damages Reserve 7qn_nnn 28 62 Pensions and Benefits Reserve _29 63 Miscellaneous Operatmg Reserves 30 TOTAL Operating Reserves 31 64 (Enter Total of lines 60 thru 63) 250,000 TOTAL ASSETS & OTHER DEBITS TOTAL LIAH & OTHER CREDITS 32 (Enter Total of lines 4. 9.18.21 thru 311 , 6, 65 11,136,315 Jnie Torso or r es 31. 44. 53. 58. and 641 Fl A 41216 N2) Page 2
Peame of Responrient This Hopoe t is - Date of Heport Henort Year E nd.no m [Dn onoinai tuo. ca. Yo im. 04. Ya Town of Hudson Light & Powe rt2) D A nesuomais.oa 3/31/85 12/31/84 PART IV: CONDENSED INCOME STATEMENT FOR THE YEAR L ne item Amount l No (al (b) l . 1 Electric Utility Operating income 2 Operating Revenues Sl 1. 716 _ 017 3 Operation Expenses 11 7 0 c; cn1 Maintenance Expenses
. 4 579 799 5 Depreciation and Amortization cc, uo 6 Taxes and Tax Equivalents ~ 10 '. 2 6 6 7 TOTAL Electric Operating Expenses (Enter Total of hnes 3 thru 61 12.951.526 8 Net Operating Revenues 784,491 9 income from Plant leased to Others ")1.199 10 Electric Utility Operating income Nnno 11 Other Utility Operating income (Utility Departments Other than Electric) (Specify on next line) 12 13 TOTAL Utility Operatmg locome (Enter Total of Imes 8 thru 12) RO7.Ra6 14 Other Income (Explain sigmficant amounts in a footnote) + 1 c: o na, 15 Allowance for Funds Used During Construction Ui~
16 Gross income (Enter Total of lines 13 thru 151 960;643 17 income Deductions 18 Interest on Long-Term Debt None 19 Other income Deductions (See pg. 4) (Explain significant amounts in a footnote) 2,798 20 TOTAL Income Deductions (Enter Total of lines 18 and 19) 2,798 21 Income 8efore Extraordinary items (Enter Total of line 16 less line 20/ 957.845 22 Extraordinary income (See definition (ff, mge ii) None 23 Extraordinary Deductions (See definition (f/, page is/ Mnno 24 Net Intnme (Enter Total of lines 21 plus line 22 less line 23) 997 Rd9 p
- Investment of Depreciation Funds
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( l PART V: ELECTRIC SALES DATA FOR THE YEAR 1 Classif y Commercial and Industrial sales into Small (or Commerciali and are added for bethng purposes, count each group of meters 50 added as one Large for Industrials according to the bavs of classification regularly used by customer The average number of customers means the total number of the respondent However, if the requ'a'ly used clawtecation es taased on de customers at the end of 12 censecutive months dmded by 12. If the mand. and if the d.tr tence e between smali demand and large demand es customer count in the rewdent al service claswfication includes customers greater than 1000 KW. then classif y demand of toon AW or less as smfi and counted more than once because of special services such as vvater t.eatng, demarwj greater than tM KW as large etc , indeciite art a footnote the number of such duplicate customers encluded 2 Report number of customers as the seri of the number of e-'eters. plus a the clawf<ation the number of flat rate accounts However viere separate meter read.ngs Line C,ss et Servu e nevenues e, .iona t t Hoss A vg No of Customers No las Inl icI idl 1 Resniential Sales S 4.694_147 60.116 590 7611
- 2 Commercial and industrial Sales i 3 Small (or Commercial) 7To 7?R 7 911 ?A7 9nq I 4 Large (or industrial) , c,3 a,i inn 17c cA9 1c7 l
5 Public Street and Highway Lighting ~'gI9'$99, II ; it 8 3; 086 95
- 6 Other Sales to Ultimate Consumers (87,095)* 533,046 138
! 7 TOTAL Sales to Ultimate Consumers 11.697.645 187.720.631 8812 l 8 Sales for Resale 19.933 218,800 1 9 TOTAL Sales of Electric Energy 11.717.57R 187.939.431 8813 10 Other Electric Revenues a1.79a ! 11 TOTAL Electric Operating Revenues 13,759,372 " l EI A412 M2)
- Negative fuel charge adjustment of (S145,284) included Page 3 I
m , u.m. o r..pono.ni i ni nw u,, i. i, .., u. n m t i t. i , .. . , , . ( . i. . .. . Town ~of Hudson, Light turJano +.. wu. ca. v,6 m , o.i v. i n nri Pnt.te r- DeDt. IN[]A b rmumn 3/31/85 12/31/84 PART Vli SALES OF ELECTRICITY FOR RESALE
- 1. Report below the information called for concerning sales tfue FP(P) for firm power supplementing customer's own generation of ing year to other electric utilities and cooperatives, and to cities or other purchases. O. for other power. Include in the O classification other public authorities for distribution to ultimate Lunsum,>rs sales in whic h the power delivered cannot be classified under either
- 2. For each sale. designate statistical classifications en colon.n ibi nt the abnve definiteons '
ts follows: FP, for firm power supplying totar system r qwreme~ts 3 For cnlumn ist enter the quantit.es shown on the b lls of Custom 6r or total requirements at a specific nomi of afmis.'rg wndem(t I f AnnuJl Revenues StJt4 lins g,q,e, og Manimum Sanes Mada To I cai Point o' De"very Amount of NO. unen Hours Demand Per
/ Enter namel Class.ts iSim ory etc l Voltage soy ISpec,/y KW Amount KWn cation tal ib, or Kval fin Cents' Il r (d! I
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2 MMwec Ma rlbo ro 115KVA 218,800 3000 SS,378 9.11 05' Hudson,MA 3 4 Town Line 5 6 7 PART IX: OPERATION AND MAINTENANCE EXPENSES Lin) ttem Operai.on No Ma.n r enanc e Toral la1 inI (c) !di Production Expenses 1 Steam Power Generation 5 S S 2 Nuclear Power Generation 3 Hydraulic Power Generation 4 Other Power Generation fSpeedy / T_C_ Dinsn1 1,523,733 285.078 1.808,811 5 Purchased Power 6 R _ 76 6 . 6 9 "I Mone 8.766.653 Other Production Expenses 7 TOTAL Production Expenses }n_9Qn_ang 9 n c; _ n 7 g !n_q75 46d 8 Transmission Expenses 9 Distribution Expenses 119'aaa 1 n1g 1111d6n en co i ont ano 3n7 nan 10 Customer Accounts Expenses 11 Sales Expenses 1di[_IUQ On W l 4 3 '. I 8 9 12
??_?RQ hin n o ??.7R9 Administrative & General Expenses 9H,596 4U,05J 1, U u , e n 13, TOTAL ELECT. OPERATION & M AINT. EXPENSES 11,195,60J b/0,ZVW _
L 2,373,901
- PART X: PURCHASED POWER
- 1. RIport below the information called for concerning powes pur- 3. Report interchange transactions as net whether the net is a chised for resale during the year.
receipt or a delivery by respondent. Indicate such transactions with
- 2. For column (d), enter the quantities shown on the bills an asterisli.
rindered. Annual Cost Lina Purchased From Numtier of Ma sum Point of Receipt Amount of No. (frirer namej Kdowatt Hours Demand M tState, city. etc ) Voltage Purt nased (Spec,fy Kw Am unt KWh or KVaj sin Centse fal ibi Ich ,do let Ifb fol 1 NEPCO Ma rlboro 115KVA 87,275,470 15,000 S3,544,96 5 4.06 2 Pilgrim B.E Hudson, MA ll5KVA 13,127 2,500 3 720,402 54.8 Vermont Yankee Town Line 115KVA 3,709,446 587 130,114 3.51 4 Maine Yankee ll5KVA 7,258,087 1,259 5 Wyman-Ya rmou th-CMP 193,375 2.66 6 115KVA 5,151,480 2,102 367,780 7.14 ggpCO-B rayton Point 115KVA 6,306,908 3,500 364,901 i 5.79 8 NEPCO-Salem Harbou r 115KVA 5,926,334 3,500 349,617 5.00 Point Lepreau 115KVA 38,330,621 4,870 1,879,170 9 MMWEC 4.S 0 30 115 KVA 1,561,771 2,813 117,215 7.50 Pnwor u n ori at Pnwer i412a298) (17.568 ) UMR W Plant and cha rgbd to Plant opera t ion "9"2
r Date of Report Report Year Ending Thes Report is: Nome of Respondent mo, oe, y,) Town of fludson Light tw. oa, Yrl n g An o,,g,n.i cnd Power Dept. 12i O A Resubmuion 3/31/A5 12/31/84 PART XI: UTILITY PLANT Balance Transfers Balance
- Additiot's Retirements and Une item Beginning End of Year During Year During Year Ad ustments N o. * *'
7,, gg; tel ifI tal Electric Utility Plant Electric Plant in Service S S S S 1 Intangible Plant $ Production Plant 2 Steam Prnduction 944 944 3 Nuclear Production 4 Hydraulic Production q9q Other Production (Speci/y / g ngg q9q g nga ~ aAQ 5 TOTAL Production Plant a'ngo'ago a'nAo 6 1 gaa ~ gaq 7 Transmission Plant i da3'dpd 8 Distnbution Plant ]'cA1 coE J618'.464 - 11.?n0 5'7465454_ 9 General Plant {,{d[ hhh 1 't a an j,,?47 1, gg g ,g,14 ic7 oec 1c Aei 1 9 1AA n9A 10 TOTAL Electric Plant in Service 1 1 An7 e1c *^M C *
-' sf65--
"W# "
W A5^~ 11 Electric Plant Leased to Others ! 2,323,759 12 Construction Work in Progress-Electric 2,040,755 None 13 Electric Plant Held for Future Use None 14 Electric Plant Acquisition Adjustments None None (See definition (e), page ii) 1 3,448,371 M 4,467,783 15 TOTAL Electric Plant None 16 Plant of Other Utility Depts. (Specity:1 None None None 17 1 3,448,371 1,059,06 1 39,656 1 4,467,783 18 TOTAL Utility Plant ( PART Xil: ACCUMULATED PROVISIONS FOR DEPRECIATION OF UTILITY PLANT Depreciation Net Charges for Other items Balance Balance Accruals Mant Retired Debit or Credit End of Year arne f Depadnient BeginW (&plaini No' of Year for Year During Year , (di (of (f) (b) Icl " is) S i c ., c $ qg7_ tgg S unno S 7671441* S1 Aa ; g 1 Electric ,c3 2 Other Utility Department (1,037,002 ) (Specify:1 3 4 567,368 None (769,561) 1,474,569 1,676,762 5 TOTAL 153,751
- Interest on investment 113,690 Reimbursement f or Plant Sold 1 nT7,0n?
Amnune nvnnn a nd --f o r con c e t,m e i nr I Page 5 l'l A 412 (6-H2)
Name at Respondent Th.s R; port is- Dits of Rcport Repor Yese E eut.nq Town of Hudson Light ill[ D n oenai t uo. 02, Yr) (Mo. Da, Yr) and Power Dept , m n A Resubmessica 3/31/85 12/31/84 PART XIV: TAXES, TAX EQUIVALENTS, CONTRIBUTIONS, AND SERVICES DURING YEAR f 1; Report below the information called for on contributions and operating expenses, etc. Show in column (e) amounts which are not services to the municipahty or other government units by the electric accounted for in respondent's financial statements. For those , utehty and, conversely, by those bodies to the electric utshty Do not amounts not included in respondent's financial statements, explain include; la) loans and advances which are subject to repayment or in a footnote the reason for their omission, which bear interest, (b) payments in retirement of loans or advances 3. Report below only taxes that are chargeable to operations of previously made, (c) contributions by the municipahty'of funds or the electric utility department. Exclude gasoline and other sales taxes property which are of the nature of investment in the electric utility which are included in the cost of transportation and materials. dipartment. 4. Report as tax equivalents only those amounts which are ,
- 2. Enter in column (c) the total contributions made or received. understood to constitute payments equivalent to or in lieu of Show in column (d) amounts included in column (c) which have amounts which would be paid if the electric utility department were been accounted for in the respondent's financial statements, i.e., subject to local tax levies.
triance sheet, income account, earned surplus, operating revenues, 5. For Other (Specify/, use a supplemental page if the lines pro-vided are not sufficient. Amount of Contribution or Value of Service
~
Lene KWh included in
"" Not included N ). (1,000's) Total Financial in Financial Staternents Statements fo) (bl (c) id) le)
By the Electric Utility to the Municipality or Other Government Units 1 Taxes S S S 2 Tax Equivalents 5 200.000 200.000 None 3 To General Funds of the Municipality 4 Other (Speci/y:1 5 - 6 TOTAL Contributions (Total of lines 1 thru 61 onn nnn Onn nnn Mnno 7 Street and Highway Lighting 79'9qq 8 Municipal Pumping 1_ g 71_ 7o}9qq Mnno 9 Other Municipal Light and Power 10 Other Electric Service 11 Nonelectric Service (Soecs/y:/ 12 . . 8s 13 TOTAL Services (Totalof /ines / thru 12) 1221 78.255 78.255 None 14 TOTAL Contributions and Services by the Electric Utihty (Total of lines 6 and 13; 1221 278,255 278,255 None By the Mun;cipality or Other Government Units to the Electric Utihty z.2. . 15 For Operations and Property Maintenance 16 Other (Speco/y:) g _ . . 18 19 TOTAL Contributeons (Total of lines 15 thru 17) Office Space None b ~T i None None 20 Water 21 Engineering Service 22 Legal Service 23 Other Service (Specify ) 24 25 TOTAL Services (Totalof /ines 19 thru 24/ None N U n t.: None None 26 TOTAL Contributions and Services by the Municipality (Total of hnes 18 anc/ 25) None None 27 None Nnno Net Contributions and Services by the Electric Utihty to the Municipahty or Other Government Umts (Total of line 14 /ess line 261 1221 278,255 278.255 None 12.1141216 N2) Page 6
r Nme of Wwonnent Th.s Report is DJre of Heporr W %v f v o Town of Hudson Light and n g An Or.ginal Wo.Da,Yr) M. O.e . Y r t Power Department m oane.uomemon March 31, 1985 December 31. 15 PART XV: LARGE ELECTRIC GENERATING PLANTS USING FUEL i 1. Large plants are plants of 25.000 AW or more of instaHed capacity 4. If net peak demand for 60 minutes is not availabie. eve that which is P . Iname plate rating). Include gas turbine and internal combustion plants of ava4able. specifying penod in a footnote. 10.000 KW and more on this page. Include also nuclear plants. S. If a group of employees attends more than one generating plant, report
- 2. If any plant as equipped with combina4ns of steam, hydro, internal on line to the appronimate average number of employees assignable to each combustion or gas turbene equipment, report each as a separate plant. plant .
However, if a gas turbine unit functions in a combined cycle operation with a 6. If gas is used and purchased on a therm basis, give the 8tu content of conventional steam unet, include the gas turbine with the steam plant. the gas and the quantity of fuel burned. Converted to Mct it it4 73 psia at
- 3. Indscate with asterisks and footnotes if any plant is leased or operated 60*F).
as a joint facility. 7. The figure entered on line 20 IFuell should be consistent with the
- Limited to 16,200 by Diesel Plant Narne- Plant Name
[' item Cherry St. Static n H.L. & P. Peakin J tal (b) (c) 1 Kind of Plant (Steam. Internal Comb., Gas Turb , or Nuclear) Tnternal enmh. Tnt ernal comh_ 2 Year Oreginally Constructed 1R97 1467 3 Year Last Urut Was Installed 1q77 1gg7 4 TOT AL Inst. Capacity (Max. Gen. Name Plate Ratings in KW) 1y_1qn* g ann [/ 5 Net Peak Demand on Plant (KW for 60 Minutes) 1q'7nn 1'onn 6 Plant Hours Connected to Load -'h dn yQ 7 Net Continuous Plant Capability (KW) 8 When Not Limited by Condenser Water 15,200 l ,_433 9 When Limited by Condenser Water 19.200 4.400 10 Average Number of Employees 11 11 Net Generation. Exclusive of Plant Use 1q n o a ~7 (; a 1 AA7 17A 12 Cost of Plant 13 Land and Land Rights q nnn u-14 Structures and improvements 332 640 NoHe 15 Equipment Costs 1.014_979 71? 094 16 TOTAL Cost TI197.d19 71? 094 17 Cost per KW of Installed Capacity (Line 41 9n7 1g9 18 Production Expenses 19 Operation Supervision and Engineering 11.588 20 Fuel 1.117,777 21 Coolants and Water (Nuclear Plants Only) 22 Steam Expenses 23 Steam from Other Sources 24 Steam Transferred (Cr.) 25 Electric Expenses 26 Misc. Steam Power Expenses (or Nucleari 197,868 27 Hents 28 Mamtenance Supervision and Engineering 14,460 29 Maintenance of Structures 5,195 30 Maintenance of Boiler Plant (or Heactor Plant) 31 Ma.ntenance of Electric Plant 262.166 32 Montenance of Misc. Steam Ptant for Nucle.ni 3.257 33 T ui AL Production E xpens-s 1.ROR_R11 34 , Expenses per Net KWh (Mills-2 Places) g [ q 7 p' 35 i nel (Kind! Coat Gis / Oil Coa! Gas 01 136 Unit (Coal- Tons of 2.000 Lt> 1 tost-Barrels of 42 Ga's 1 (Gas-Mct) (Nuclear Indicate) AC.FT 42 ga1 37 Ouantity (Units) of Fuel Burned 2 47,723 7646 38 Averaqe Heat Content of Fuel Burned (8tu per Lh. of Coal, per Gal of Osi, or per Cu. F t. of Gas) )10 BTU 140,C00 BTU 39 Avetage Cost of Fuel per Unit, as Delivere(f F O B Pfant outing year S4.43 $32.75 40 Average Cost of Fuel per Unit Burned S4.43 $28.00 4l Average Cost of Fuel Burned per Million Btu 34,87 $ 4.76 42 Average Cost of Fuel Burned per KWh Net Generation * .0476 43 Average Stu gwr KWh Net Generation eg,819 EI A.412 Hi c
- combined P.& 7
1
, This Asport is: Oaie of Hspor Heim i w.- E 4,u Neme Townof ofisspon"f"enEudson
- Light and (Mo. Os, Yrl 4 Mo. Da. b i (1) QAn Or.pnes
. Power Department (2) OA Resubmesseo,, March 31, 198 3 Dec. 31, 198 4 PART XV: LARGE-ELECTalC GENERATING PLANTS USING FUEL (Continued) figures entered on fine 37 (Guant tv of Fuel Burnedt. hne 38 l Avg. Heat Con- and 554) on hee 31 "Ma.ntenance of Electric Plant "Ind.cate plants viesignert tant), hne 40 4 Avg Cost of Fuell and I.no 41 ( Avg Cost of Fuet Burnect for peak load service. Des,gnate with an asterisk automaticativ oce,ated 8 af more taan one fuel is burned in a plant. furnish only the composite piants hsst rate for all fuels burned. 11. If the respondent operates a nuclear power generating plant. attach
- 9. The stems under Cost of Prant hne 12. represent accounts or (omb.na (a) a brief emplanation accounting for the cost of power generated. including
'tu)ns of accounts prescribed by the (Jn form System of Accounts. Produc- any attribution of escess costs to research and development empenses: Ibi a
- i' teon esponses do not include Purchased Power, System Control and Load brief emplanation of the fuel eccounting. specifying the accountsng methods Dispatch.ng, and Other Espenses class.t.ed as "Other Power Suppiv Es and types of cost units under with respect to the various components of the penses' fuel cost; and (c) additional information as may be informatewe concern.ng
- 10. For t.C. and G.T. plants. report Operating Empenses taccount nos. 548 the type of plant, kind of fuel used. and other phys < cal and operating -
and 549) ori hne 25 Electrac Espenses." and Ma.ntenance taccount nos 553 characteristics of the olant . Plant Name Plant Name. Piant Name Line item gg Idf !et rff lat Kind of Plant 1 Year Constructed 2 Year Last Unit 3 TOTAL installed Capacity 4 l Net Peak Demand 5 Plant Hours 6 Net Capability 7 Not Limited 8 Limited 9 Employees 10 Net Generation 11 Coit of Plant 12 Land 13 Structures 14 Eauspment IS TOTAL 16 Cost per KW 17 Production Expenses 18 l Operation Supervision 19 Fuel 20 Coolants 21 Steam Excenses 22 Steam Other Sources 23 Steam Transferred 24 Electric Expenses 25 . Misc. E xpenses 26 Rents 27 ' Maintenance Supervision 28 , Maint. of Structures 29 Maint. of Boiler 30 Maint. of Electric Plant 31 Maint. of Misc. Steam 32 TOTAL Production 33 Expenses 34 Coal Gas Oil Coal Gas Oil Coal Gas Oil F uel: ( K irwl) 35 Unit 36 Ouantity 37 Avg. Heat Content 38 Avg. Cost F.O.B 39 Avg Cost Burned 40 Avg. Cost Btu 41 Avg. Cost KWh 42 Avg Hru .rKnh !i Nep+ H IIL412(6NJ)
Name of Hesponoent Th.s Heport is Date of Report Report Year Ending
. Town of Hudson Light and m 00 An Orig nal W o.Da,Yr) No, Da, Yr)
. Power Department m O A Resubm.ssion na rch 31, 1985 Dec. 31, 198 4 PART XVI: HYDROELECTRIC GENERATING PLANT STATISTICS (Large Plants)
- 1. Large plants are hydro plants of 10,000 KW or more of installed 3. For line 5, if net peak demand for 60 minutes is not available, capacity (name plate ratings). give that which is available, specifying period.
- 2. Indicate by an asterisk and explain in a footnote if any plant is 4. For line 10, if a group of employees attends more than one leIsed, operated under a license from the Federal Energy Regulatory generating plant, report the approximate average number of Commission, or operated as a joint facility. If a licensed project, give employees assignable to each plant.
project number. FPC Licensed Project No. and Plant Name: F PC Licensed Prosect No F PC Licensed Project No. Lin' and Plant Name and Plant Name No. 1 Kind of Plant (Run-of River or Storage) 2 Year Originally Constructed 3 Year Last Unit was Installed 4 TOTAL Installed Capacity (Generator Name Plate Ratings in KW) 5 Net Peak Demand on Plant (Kilowatts for 60 Minutes) 6 Plant Hours Connected to Load 7 Net Plant Capability (Kilowatts) 8 Under the Most Favorable Operating Conditions 9 Under the Most Adverse Operating Conditions 10 Average Number of Employees wyp appi. FART F 11 Net Generation. Exclusive of Plant Use 12 Cost of Plant 13 Land and Land Rights 14 Structures and improvements 15 Reservoirs Dams, and Waterways 16 Equipment Costs 17 Roads, Railroads, and Bridges 18 TOTAL Cost (Enter Total of lines 14 thru il) 19 Cost per KW of installed Capacity ILme 18 Tline 41 20 Production E xpenses 21 Operation Supervision and Engineennq
, 22 Water for Power 23 Hydr aulic E xpenses 24 Electnc E xpenses 25 Misc. Hydraulic Power Generatinn E =penses 26 Hents 27 Maintenance Supervision and Engineering 28 Maintenance of Structures 29 Maintenance of Reservoirs Dams, and Waterways j 30 Maintenance of Electric Plant l 31 Maintenance of Misc. Hydraulic Plant 32 TOTAL Production Expenses (Total of hnes 21 thru J1/
l 33 E xpenses per Net KWh (Mills-2 Places) i l i l'l A.412 (6 M2) Page 9 L
u.m.o,n.spond.nt . in.s s.pon is. o.i. or n. port sepori v rar Eno no Town of Hudson Light and m g An Or.g.nal (Mo, Ds. Yr) Mi. Da Y.i Power Department m O A Resubm.ssion Ma rch 31, 1985 DEc. 31, 198 4-PART XVI: HYDROELECTRIC GENERATING PLANT STATISTICS (Large Plants) (Continued)
- 5. The items under Coat of Plant represent accounts or combine- as "Other Power Supply Expenses."
tions of accounts prescribed by the Uniform System of Accounts 6. If any plant is equipped with combinations of steam, hydro, in. Under Production Expenses, do not incluce Purchased Power, ternal combustion engine, or gas turbine eouipment, report each as System Control, and Load Dispatching. or Other Expenses classified a separate plant. FPC Licensed Progect No. F PC L. censed Project No FPC L censed Pro 3ect No FPC Licensed Pe.v cr No and P;a't Name and Prant Name and Piant Name L'ne and Pfant Name Nr. Kind of Plant 1 Year Constructed 2 Year Last Unit 3 TOTAL Installed Capacity 4 Net Peak Demand 5 Plant Hours 6 Net Capability 7 Most Favorable 8 Most Adverse 9 NOT APPT.TCART.R Employees 10 Net Generation 11 Cost of Plant 12 Land 13 Structures 14 Reservoirs. Etc. 15 Equipment 16 Roads, Etc. 17 TOTAL 18 Cost per KW 19 Production Expenses 20 Operation Supervision 21 Water for Power 22 Hydraulic Expenses 23 Electric Expenses 24 Misc. Expenses 25 Rents 26 ) Maintenance Supervision 27 Maintenance Structures 28 Maint. Reservoirs, Etc. 29 Maint. 5!iectric Plant 30 Maint. Hydraulic Plant 31 TOTAL 32 E mpenses per Net KWh 33 l l l l FI A 412 me Page 10 t i i L
7-C Name of Respondens . Th s RIport is. Orts of R; port RIport Ysar End.ng , f Town of Hudson Light and Power Dept, m 00 An or,nai (Mo. oa. vo iMo.o .yo C m O A Resuomns.on u s ,--.x ,i inac lecember 31. 1984 .3 '' PART XVill: GENERATING PLANT STATISTICS (SmallVia tsi' N_
- 1. Small generating plants include: all plants of less the respondent operates a nuclear power generating operating characteristics of the plant.
than 25.000 KW. Include the reporting of uncnnven- plant attach (a) a brief explanatory statement concern- 4. For column (d) if net peak demand for 60 minutes tional plants on this page, ing accounting for the. cost of power generated, in- is not available, give data that is available, specifying
- 2. Designate any plant leased from others, operated ciuding any attribution of excess costs to research and period.
under a ircense from the Federal Energy Regulatory development expenses; (b) a brief explanation of types 5. If any plant is equipped with combinations of Commission, or operated as a joint facitity, and give of cost units used with respect to the various com- ' steam, hydro, intemal combustion or gas-turbine equip-particulars fdetails) in a footnote. If the project is li. ponents of the fuel cost; and (c) such additional infor. ment, report each as a separate plant. However, if the censed, give project number in a footnote. mation as may be informative concerning the type of exhaust heat from the gas turbine is utilized in a steam
- 3. List under appropriate subheadtngs steem. hydro, plant, kind of fuel used, fuel enrichment, by type and turbine regenerative feed water cycle, or for preheated nuclear, internal combustion. and gas-turbine plants. If quantity f or the reporting period, and other physical and combustion air in a boiler, report such as one plant.
"** Net Net Plant Year Peak Generaten Cost Production Espenses -Fuel L'"'
Name of Plant Ow Demand Encluding ggp Per KW Cost Const Name Plate ,, No. KW Plant Inst. Operation Rateng-KW (60 Min.) Use Capacity Exc't. Fuel Fuel Maintenance Fuet y[" g'" tai tbt (cf Idl tel til Igl thI fu til (Al ris 1 2 3 4 5 6 NOT APPLICABLE 7 8 9 10 11 12 13 14 15 16 17 18 19 20 , 21 22 23 24 25
? 26 3 27 0 28
4
- Name gf Respondent This RIport is- Dat's of Report Report Yest End.no Town of Hudson Light anu (H 52 Aa one'aai (Mo. oa. Yr) (Mo. Os. Yrl Power DepartmuuL (N A Resubrmssion - Fla s rch 31, 1905 Dec. 31,1984 PART XIX: STEAM-ELECTalC GENERATING PLANTS
- 1. Include in this part steam-electric plants of 25,000 KW Iname 4. Designate with an asterisk any generating plant or portion plat 3 rating) or more of installed capacity. thereof for which the respondent is not the sole owner. If such prop-
- 2. Report the information called for concerning generating plants erty is leased from another company, give name of lessor, date and
- and equipment at end of year. Show unit type installation, boiler an't term of lease, and annuet rent. For any generating plant, other than a turbine-generator, on same line. leased plant or portion thereof for which the respondent is not the
- 3. Exclude from this part the book cost of that plant which is in- sole owner but which the respondent operates or shares in the ,
cluded in Account 121 (Nonutility PropertyL operation of, furnish on a supplemental page a brief statement ex-BOILERS U"3 Name of Plant Locat.cn of Plant Rated Steam aM Man, Number Kand of Fuel Rated Temperature IEnre, h e uous and Year and Method Pressure instatled of Firing toseg) IN/I@ for reheat borters} (b) tc) idt le) til 1g1 tal , 1 2 3 4 5 6 NOT APP 1ICABLE 7 8 9 10 11 , 12 13 14 . 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 33 32 33 EI A412 (6 N2) P.9. 12
d ' ' ' '"'" " ""*"'*""*"*
"T608Ff'h dson Light and "[" " ; '
- Power Department Ons won PART XIX: STEAM-ELECTRIC GENERATING PLANTS (Continued) plaining the arrangement and giving particulars (details) on such 6. Report any plant or equipment owned by the utility but not matters as percent ownership by respondent, name of co-owner, operated or leased to another utility. If such plant or equipment was basis of sharing output, expenses or revenues, and how expenses not operated within the past year, state if it has been retired in the and/or revenues are accounted for, and accounts affected. Specify books of account or what disposition is contemplated for the plant if lessor, co-owner, or other party is an associated company. or equipment and its book cost.
- 5. Report any generating plant or portion thereof leased to 7. Include in this part gas turbines operated in a combined cycle another utility. Give name of lessee, date and term of lease, and an- with a conventional steam unit and its associated steam unit, nual rent and how determined. Specify whether lessee is an 8. In columns (e) thru (g), (i), (k), and for dual-rated installations, associated utility. report ratings of both the boiler ar.d the turbine-generator.
Optional TURBINE GENERATORS Ifor cross compound turbone generators. report H.P. section on oneline and L.P sectron on the nesttone Desognate unots worh shaft connected booter feed pumps. Give capacory rating of pumps in terms of fullload reauorements.) Plant GENERATORS g, ,c,,y. fuRBINES Ifn coturum fol. mdocere whether tendem Manemum convoand I TCI. cross corrpound ICC). Name Plate Ratmg single casong ISC). toppmg unet IT). o' (In keiowatts) tme noncondensmg livCI. Show back twessure i Name Plate at Hydrogen U' Voltage Rating Plant Pressure (Des,gnate (in KV) IShould agree Year Steam At At air coo /ed Eo ISP'C'ty charac with column (n)) Installed Man. Pressure Menimum Ma ximum generators / $$ "5C3 'f 0'h Ratmg Type at R P.M- Hydrogen Hydrogen G* than J phase, tin KW) Throttle Pressure Pressure 60 cyc/el (psig! Men. Max. th) top til ik) (1) Iml in) tal (p) (ql tr) Isl fal 1 2 3 4 5 6 NOT APPLICABLE 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 13 El A-412 (6-N2) Page 13
Nome of Respondent , Th Date or Heport H-gu i vec t no.nq Town of Hudson Light and Po gg's Hiport is[y, o,,,,,, , y,, o,, yg g,, o ,, y , , j Department in O A Resubrassion Ma rch ll. 198E Dec. 31. 1988 ; PART XX: HYDROELECTRIC GENERATING PLANTS
- 1. Include in this' part hydro plants of 10.000 KW (name plate 4 Designate any plant or portion thereof for which the resport.
r: ting) or more of installed capacity, dent is not the sole owner. If such property is leased from another .
- 2. Report the information ca!!ed for concerrung generating plants company, give name of lessor, date and term of lease, and annual rnd equipment at end of year. Show associated pome movers and rent. For any generating p: ant other than a leased plant, or porteon gen 1rators on the same line. thereof, for which the respondent is not the soie owner but which ,
- 3. Exclude from this part the book cost of the plant which is in. the respondent operates or shares in the operation of, furnish on a cfuded in Account 121 (Nonutility Property). supplementary page a brief statement empfeining the arrangement 9
WATER WHEELS , Lins T,ce ce gr SS bdLC Name of Piant . Loca:.on Nar"e of Stream Attenceo c. N 3. Unarrnaced Unt #
- instarted Pono Futt ial ib) (CI idi fe) iff Ici 1
'2 3
4 5 6 7 8 9 10 NOT APPLICA3LE
.11 12 13 14 15
~
16 17 18 19 . 20 21 22 . 23 24 . 25 26 27 28 29 30 3* 32 33 34 35 36 37 38 39 40 EI A-412 (6 ND Patna 14 i
Nome of Respondent This Report is: Date of Heport Hepnet Year Ending Town of Hudson Light and n i pn o,,,n., iuo, o,, y,3 i u n, o,. v ,, Power Department m O A Resubmnsson Mnvch 't 1 1QQ4 non
~~ -~ ~
't 1 1QQa ~ ~
PART XX: HYDROELECTRIC GENERATING PLANTS (Continuedf
, and giving particulars (details) on such matters as percent ownership 6, Designate any plant or equipment owned but not operated or by respondent, name of co-owner, basis of sharing output, ex- leased to another company, if such plant or equipment was not penses, or revenues, and how expenses and/or revenues are ac- operated within the past year, explain whether it has been retired in counted for and accounts affected. Specify if lessor, co-owner, or the books of account or what disposition of the plant or equipment cther party is an associated company. and its book cost is contemplated.
- 5. Designate any plant or portion thereof leased to another com- 7. In column (el, indicate whether water wheel is horizontal or pany and give name of lessee, date and term of lease, and annual vertical type. Also indicate type of runner Francis (F), fixed propeller rent and how determined. Specify whether lessee is an associated (FP), automatically adi ustable propeller ( A P), or Impulse !!).
company. Designate reversible type units in a footnote. WATER WHEELS (Continued) GENERATORS Optional Total Installed Manimum HP Fre- Generatin9 Name Line Design Head R . P. M - Capacity of Unit at V Itage Pnase quenci No. Insta ted R t ng o Unit of n PI e ahng Design Head or d.c. Ein kdowatts) in Plants (In kilowatts) Plant th) til til thi (t) Iml Inl fol 101 (4) tal 1 2 3 4 5 6 7 8 9 NOT APPL ECAB L,E 10 11 12 13 14 15 16 17 18 19 20 21 22
- 23 24 25 26 21 28 l 29 l 30 31 32 3
33 34 35 36 37 j 38 31) l l M Pago 15 El A-412 (6-M2)
Nerne of Hospondent Thes Report is: 0;ts cf Report Rmort Yes, Ending Town of Hudson Light and ei An o,,,n.: tuo. o;. vri tuo. oe. vri Power Department m A Reiubm.s ion March 31, 198 3 Dec. 31. 1984 PART XXI: INTERNAL COMBUSTION ENGINE AND GAS-TURBINE GENERATING PLANTS
- 1. Include in this part internal-combustion engine and gas turbine 4. Designate any plants or portion thereof for which the respon-plants of 10,000 kilowerts and more, dent is not the sole owner, if such property is leased from another ,
- 2. Report the information called for concerning plants and equip. company, give name of lessor, date and term of lease, and annual ment at end of year. Show associated prime movers and generators rent. For any generating plant other than a leased plant, or portion on the same line. thereof, for which the respondent is not the sole owner, but which ,
4 3. Exclude from this part the book cost of the plant which is in- the respondent operates or shares in the operation of, furnish a suc-cluded in Account 121 (Nonut.lity Property). PRIME MOVERS Line Name of Plant Location of Plant Internal-Combusteon or Year Belted N 2. Gee-Turbine instaned or Direct Connected 101 lb) fel fdl to) ft) 1 Cherry St. Che rry S t . , Hudson 4A Intermal Ccimb 1937 2 Direct 2 Cherry St. Cherry St., Hudson 4A Internal Ccimb 1951 2 Direct 3 Cherry St. Cherry St . , Hudson 4a Internal Ccimb 1955 2 Direct 4 Cherry St. Cherry St., Hudson 4A Internal Ccimb 1960 2 Direct 5 Cherry St. Cherry St., Hudson MA Internal Cc>mb 1972 4 Direct 6 7 8 9 to Hudson Light 11 Peaking Plt. Cherry St . , Hudson MA Internal Comb.1962 2 Direct 12 Hudson Light 13 Peaking Plt. Cherry St., Hudson MA Internal Comb 1962 2 Direct 14 15 16 17 18 19 , 20 21 22 , 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 , 38 39 40 EI A 412 (6 82) Page 16
r Name of Respondent Ihil Report is- Date of Report Heport Year End.ng Town of 11udson Light and m CIAn Original N o,Da.Yr) (Mo. Os. Y rl Power Department 1210 A Reut>minioa b a rch 31, 1985 Dec. 31,1984 PART XXI: INTERNAL-COMBUSTION ENGINE AND GAS-TURBINE GENERATING PLANTS (Continued) cinct statement explaining the arrangement and giving particulars 6. Designate in a footnote any plant or equipment owned but not Idetails) on such matters as percent of ownership by respondent, operated or leased to another company. If such plant or equipment name of co-owner, basis of sharing output, expenses, or revenues, was not operated within the past year, explain whether it has been and how expenses and/or revenues are accounted for and accounts retired in the books of account or what disposition of the plant or
- affected. Specify if lessor, co-owner, or other party is an associated equipment and its book cost is contemplated.
company. 7. In column (e), for' gas turbine prime movers, indicate whether
- 5. Designate in a footnote any plant or portion thereof leased to basic cycle is open or closed; for internal-combustion, indicate another company arid give name of lessee, date and term of lease, whether cycle is 2 or 4.
. and annual rent and how determined. Specify whether lessee is an associated company.
PRIME MOVERS GENERATORS Optional IContinued; Total Installed Frequency Name Plate Rating Number Generating Capacity Name Lane Year instaHed Voltage Phase or d c. of Unit of Units (Name Plate Rating) of No. Un kilowatts) in Plant (In kilowatts) Plant tel thi til til ikt (1) Im1 in) tal 1 1480 1937 2300 35 50 cyl. 1000 1 1000 2 4250 1951 4160 35 50 cyl. 3300 1 3000 3 5100 1955 4160 3# 50 cyl. 4000 1 3600 4 4250 1943 4160 39 50 cyl. 3250 1 3000 5 7760 1972 4160 39 50 cyl. 5600 1 5600 e 7 8 9 10 3168 1962 4160 39 50 cyl. 2200 1 2200 11 4 12 3168 1962 4160 3D 50 cyl. 2200 1 2200 13 14 15 16 17 18 19
. . 20 21 22
. 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 El A 81216 H2n Page 17
1 Nome gf Respondent TNs Arport is: Oste of Ripots Heport Yeae E nd.ng Town of Hudson Light and m an o,.en.e (Mo. o.. vri ivo. oa. vre Power Department (2) A Aesubtrhesson 14a rch 31, 198E Dec. 31, 198 i PART XXill: TRANSMISSION LINE STATISTICS 1._ Report below information requested concerning each transmis- the respondent is not the sole owner. If such property is leased from sion line. Show highest voltages first. If more space is required use another, give name of lessor. supplemental page using the column headings snown on this page, a . Designate in a footnote any transmission line leased to another
- 2. Indicate in column (d) whether the type of supporting structure and give name of lessee is: (1) single pole, wood, or steel: (2) H. frame. wood or steel poles; 3, For column (c), if the voltage used is different from operating, *
(3) tower; or (4) underground construction. report the difference in a footnote.
- 3. Designate any transmission line or portion thereof for which a
Designation LENGTH IPole Miles) IName of Terminal Stations Sao of Numt>er Type of On On Conductor no Operet'"Q Supportes and Structures Structures V0"*G' "Ud* Frorn To Structure of Lir e of Another Material Des > grated Line tot tbl tel to) tel til thI ig) 1 Ha rlbo ro- Forest Avenue 2 Hudson, MA. Sub-station 115KV Steel 3.2 336.4 2 3 Town line at- Hudson, MA. Poles MCM 4 ACSR River. Street 5 " Linnet " 6 7 8 9 10 11 12 I 13 14 15 16 17 18 19 20 21 22 23 24 25 , 26 27 . 28 29 30 31 32 } 33 34 35 i 36 i 37 38 i 39 t 40 ! 41 l 42 ( 43 EI A 412 (6421 Page 18 i i J
i j l I t i t 4 u,m ,o,n.,pono n, Th. n.po,, t.: o. . of nepori sepon ve.,, en<i.nn Town of fludson Light and itgan o,,9nM (Mo,Da,Yd (Mo D.i. v d Power Department ta E]4 n.suom.. .oa Ma rch 11. 198 3 Dec. 31, 19E 4 PART XXV: ELECTRIC ENERGY ACCOUNT
- 1. Report below the information called for concerning the disposi- 2. Submit an explanatory statement of anyinterchange, transmis-tion of electric energy generated, purchased, and interchanged dur- sion, or wheeling transaction, giving name of other party and ing the year, amount of compensation for the service to or by the respondent.
Len. Item K sowatt-Houes No. (a) (b) SOURCES OF ENERGY Generation (Excluding Station Use) 1 Steam
? Nuclear 3 Hydro 4 Diesel 5 Gas Turbine 27,S36,160 6 Other (Specify:)
7 8 TOTAL Generation (Enter Total of lines I thru 7) 27,536,160 9 Purchases 155.120,946 10 in (Gross) KWh : 99_ i 7n A 1R 11 Interchanges Out (Gross) 12 6 194 61n KWh Net (Enter Total of hnes to an<111J 91.49G.99R 13 Received KWh ' 14 Transmission for/by Others (Wheehng) Dehvered KWh 15 Net (Enter Total of hnes 13 and 141 NONB 16 TOTAL (Enter Total of lines 8. 9.12 and 15) 204,633,334 DISPOSITION OF ENERGY
*
- 17 Sales to Ultimate Consumers (including Interdepartmental Sales) 187,720,631 18 Sales for Resafe 218,800 '
19 Energy Furnished Without Charge none Energy Used by the Utthey (Escluding Station Use) 20 Electric Department Only (Use by Other Departments Should be Accounted Of as Safest 298,087 21 fnergy Losses- Transmission and Conversion Losses 7,472,134 22 Distribution Losses 5.441,682 21 Unaccounted Ior Losses 1.482.000 l 24 TOTAL Energy Losses (Enter Total of lines 21 thru 231 16.195 Rl6 l 25 (Percent Lost of Total Energy Generated, Purchased, and Interchanydl A_n199. 2G TOT At. ! Enter Toryt of Iones 17 thn> 19. 20 .unct 21) r,, 1 3 r1.* ,
, n .y L
I i ~ i
This t.oport to. Deto gf y-ieport RIport YeSe Endang NameifL
'own oEpondedson Hu Light and
,,,g ,,on3,3 i u ,, o,, y,, iuo, os, v,,
Power Department (2i O A naubm. mica March 31, 198 5 Dec. 31, 19E 4 PART XXVI: FOOTNOTE DATA - perg - Par t L ne Co:umn Commen ts N umber Number Number Number t.n > 101 tcI tol (*! NONE 0 Page 20 EI A.41216.N2 , , l
ANNUAL REPORT 1984 CL&P THE CONNECTICUT LIGHT AND POWER COMPANY a subsidiary of Northeast Utilities
DIRECTORS PHILIP T. ASHTON BERNARD M. FOX Senior Vice President Senior Vice President and Chief Financial Officar JOHN P. CAGNETTA FRANK R. LOCKE Vice President Vice President and Chief Administrative Officer. WILLIAM B. ELLIS **'"'" ** **"* ' *P*"Y Chairman and Chief Executive Officer LEON E. MAGLATHLIN. JR. WALTER F. FEE * " " '* ** *"* Executive Vice President LAWRENCE H. SHAY E. JAMES FERLAND ne ce Nsent President and Chief Operating Officer WALTER F. TORRANCE. JR. Senior Vice President, General Counset and Assistant Secretary OFFICERS WILLIAM B. ELLIS JOHN P. CAGNETTA RICHARD P. WERNER Chairman and Chief Executive Officer Vice President Vice President E. JAMES FERLAND TOD O. DIXON CHARLES S. BEACH President and Chief Operating Officer Vice President Regional Vice President-Western WALTER F. FEE RAYMOND E. DONOVAN W. LINDSEY BOOTH Executive Vice President Vice President Regional Vice President-Eastern PHILIP T. ASHTON ALBERT J. HAJEK THOMAS F. BRENNAN Sen'or Vice President Vice President riegional Vice President-Central WILLIAM G. COUNSIL WARREN A. HUNT LESLEY C. GEROULD Senior Vice President Vice President Regional Vice President-Southern BERNARD M. FOX FRANCIS L. KINNEY ALBERT E. MAGEE Senior Vice President and Vice President Regional Vice President-Northern Chief FinancialOfficer HARRIE R. NIMS GEORGE D. UHL LEON E. MAGLATHLIN, JR. Vice President Controller Senior Vice President LEONARD A. O'CONNOR ROBERT W. BISHOP LAWRENCE H. SHAY Vice President and Treasurer Secretary Senior Vice President JOHN F. OPEKA CHERYL W. GRISE' WALTER F. TORRANCE, JR. Vice President Assistant Secretary Senior Vice President. General Counsel and Assistant Secretary RICHARD A. RECKERT DOUGLAS R. TEECE Vice President Assistant Secretary WARREN F. BRECHT Vice President WALTER T. SCHULTHEIS ROBERT C. ARONSON Vice President Assistant Treasurer C. THAYER BROWNE Vice President C. FREDERICK SEARS DAVID H. BOGUSLAWSI Vice President Assistant Treasurer CARROLL A. CAFFREY Vice President JOHN J. SMITH Vice President FEBRUARY 28,1985
The Connecticut Light and Power Company February 28, 1985 To Our Preferred Stockholders: The financial statements and statistical data contained in this report reflect the results of operations of The Connecticut Light and Power Company (CL&P) for 1984. The 1984 annual report of Northeast Utilities, which provides information regarding the entire Northeast Utilities' system, including CL&P, has also been mailed to all CL&P preferred stockholders. This report is brief for that reason. Because of the steady improvement in its financial condition in 1984, CL&P did not file any rate cases in 1984. Higher sales levels, a retail rate increase granted in December 1983 and cost containment measures undertaken by CL&P were all responsible for the increase in net income in 1984. CL&P expects to file rate applications in both its retail and wholesale jurisdictions in 1985. Millstone 3 is now closer to completion due to efforts made in 1984. The total estimated cost of the Company's 52.6115 percent ownership in the unit is currently estimated to be $2.01 billion, based on the unit's projected cost of , $3.825 billion. The unit was estimated to be 93 percent complete at l December 31, 1984. In 1984, CL&P bonds were upgraded by Standard & Poor's from BBB- to BBB+ l snd its preferred stock was upgraded from BB to BBB. In 1984, CL&P issued $75 million principal amount of first mortgage bonds, and $80.8 million of variable rate pollution control notes and entered into a
$75 million interest rate exchange agreement. During 1985, CL&P plans to issue l
cdditional preferred stock and long-term debt. Sincerely, l l President Chairman x .1
. 8
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i ) The Connecticut Light and Power Company MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This section contains management's assessment of the The Connecticut Light and Power Company's (the Company) financial condition and the principal factors which have an impact on the results of operations. This discussion should be read in conjunction with the Company's financial statements and footnotes. FINANCIAL CONDITION The Company showed steady improvement in its financial condition through-out 1984. The Company's net income increased to $284.2 million in 1984 from
$227.2 million in 1983. The increase in earnings is attributable to a combination of the effects of a higher level of sales from an improved economy and rate increases, as well as cost containment measures taken by the Company. Notwithstanding these improvements, the allowance for funds used during construction (AFUDC), a noncash item representing the estimated cost of capital funds used to finance the Company's construction program, continues to provide a substantial portion of the Company's earnings.
Continued progress will be necessary for the Company to fully regain and maintain financial health. Considerable uncertainties, such as the timely completion and rate recognition of the Millstone 3 nuclear unit, still face the Company. Legislation enacted in Connecticut during 1983 could limit the recovera-bility, with certain exceptions, of Millstone 3 construction costs above the unit's 1982 estimated cost of $3.54 billion. In August 1984, Northeast Utilities (NU) announced that the estimated cost of Millstone 3 was expected to exceed the 1982 estimate of $3.54 billion. NU is now using a projected cost for the unit of $3.825 billion. The Company has a 52.6115 percent ownership interest in this unit. The Company is not able at this time to determine how much, if any, of the total cost of Millstone 3, above
$3.54 billion would not be recoverable because of this law. The Company believes that it is constitutionally entitled to full recognition of its prudently incurred investment in plants necessary to provide service to its customers. If necessary, management intends to pursue appropriate measures, which could include seeking legislative change or administrative and court appeals, to obtain full rate recognition of its prudent investment in Millstone 3.
Because the rate levels necessary to support full recognition of its prudent Millstone 3 investment will be substantially higher than current rates, the Company expects that the Connecticut Department of Public Utility Control (DPUC) will consider requiring that the costs associated with Millstone 3 be phased into rates over a limited number of years after the unit enters service. Management believes that a reasonable phase-in plan over a relatively short period of time could be manageable from a financial point of view. However, failure to provide full rate recognition for Millstone 3 upon its completion would represent a break from traditional
- - - - - - - - - - - - - - - -~- - - - - - - - - - - -
T rate-making principles and could be interpreted by investors as symptomatic of an unsupportive regulatory environment. This perception could result in increased cost and/or decreased availability of funds for the Company's future capital needs, and could have long-term, negative effects on future electric rates. The Company has a 4.1 percent ownership interest in the Seabrook proj ect . In 1984, legislation was enacted in Connecticut requiring the DPUC to establish a limit on the amount of construction costs of Seabrook unit I that may be made part of the rate base or otherwise included in the rates of the Company. The DPUC established such a limit, with certain exceptions, at
$4.7 billion, of which approximately $191 million would be applicable in the determination of the Company's rates. This legislation also required the DPUC to determine the economic viability of Seabrook unit 1, the ability of the owners to finance the project to completion, and the probability that the project would be completed and placed in service. In its decision, the DPUC concluded that Seabrook unit I was both economically and financially viable.
The Company continues to believe that the timely completion of Seabrook unit 1 is in the public interest, in the best interests of ratepayers and l investors, and economically more desirable than cancellation, but completion of the unit is not assured. Construction Program The Company's 1984 construction expenditures of $508.3 million were the highest in its history. Projected construction expenditures, including AFUDC but excluding nuclear fuel, for 1985 through 1989 are presented in the following table. Annual construction expenditures are projected to peak in 1985 and decline to a lower level after Millstone 3 begins commercial operation in 1986. Electric Generating Facilities Other Total (Thousands of Dollars) 1985 $486,837 $92,181 $579,018 1986 212,810 92,496 305,306 1987 110,254 89,024 199,278 1988 62,666 89,363 152,029 1989 51,945 94,792 146,737 1 The construction of Millstone 3 is the most significant item in the construction program, representing about 72 percent of the program in 1984 and 56 percent of the 1985 and 1986 programs. Millstone 3 remains on schedule for its planned in-service date of May 1986. The total estimated cost of the Company's 52.6115 percent ownership interest in the unit (representing 7 605 MW), based on the analysis completed in 1984, is currently estimated to be $2.01 billion of the unit's projected cost of $3.825 billion. The construction of the unit was estimated to be 93 percent complete at December 31, 1984.
The construction program also includes the Company's 4.1 percent interest in Seabrook unit 1. The Company considers Seabrook unit 2 to be effectively canceled and, therefore, no costs for further construction of Seabrook unit 2 are included in the construction program, although there are some minimal expenditures included for security and other measures necessary to preserve and protect any assets represented by the unit. For financial planning purposes, the Company is projecting that Seabrook unit I will be placed in service in the third quarter of 1987 and the Company's share of the cost will be approximately $210 million. The Company's share of the construction expenditures for Seabrook unit 1 is estimated to be $77 million for 1985 through 1987. In addition to construction expenditures, the Company estimates that nuclear fuel requirements will be $254 million for the years 1985 through 1989. Financing It is essential that the Company regain and maintain its financial health to assure access at reasonable cost to financial markets so as to acquire the funds needed for its ongoing construction program. Cash require-ments in excess of internally generated funds are financed through short , intermediate- and long-term borrowings, the issuance of tax-exempt pollution control notes, construction and nuclear fuel trust financings, leasing agreements, sales of preferred stock and capital contributions from the parent company. In addition to construction and nuclear fuel requirements, the Company is obligated to meet debt maturities and cash sinking-fund requirements totaling $231.3 million for the years 1985 through 1989. Although the level of internal cash generation has increased in recent years, external financing continues to supply a substantial portion of total cash requirements and is expected to continue to do so until Millstone 3 is placed in service and reflected in rates. In 1985, the Company intends to issue additional long-term debt and preferred stock and to utilize construction and nuclear fuel trust arrangements and revolving credit / term loan agreements. In addition, the Company expects to receive open account advances or capital contributions from the parent company. During 1984, the Company issued approximately $230.8 million of first mortgage bonds, pollution control notes and long-term notes. The Company also received capital contributions of $30 million from the parent company. In addition, the Company and Western Massachusetts Electric Company (WMECO) used the construction trust arrangement to finance a portion of Millstone 3 construction expenditures during 1984. The Company and WMECO continued to utilize a nuclear fuel trust to finance nuclear fuel requirements for Millstone 1 and 2 and their ownership share of Millstone 3. As of December 31, 1984, the Company's portion of the trust's investment in nuclear fuel was $279.9 million. Some of the Seabrook joint owners experienced financial difficulties in 1984. As a result, to better assure their ability to complete the project, each Seabrook joint owner was required to establish a financing plan and/or agreement to cover its portion of the cost to complete Seabrook unit 1. In September 1984, the Company obtained commitments for letters of credit to
l assure it will meet its 4.1 percer. share of the cash requirements to complete Seabrook unit 1. The Company and WMECO have done considerable contingency planning to help assure that adequate cash resources will be available to complete Millstone 3. That planning recognized that many of the Seabrook joint owners are also joint owners of Millstone 3. If any of those joint owners do not meet their financial obligations for the continued construction of Millstone 3, the Company and WMECO might find it necessary to take on additional obligations to complete the unit. As a result of such contingency planning, and in addition to the $400 million available credit for the Company and WMEC0 under the construction trust, the Company and WMEC0 expanded their credit lines to $398 million. The Company and WMEC0 have had a $200 million aggregate revolving credit / term loan agreement for several years under which the maximum borrowing limits for the Company and WMECO are
$200 million and $60 million, respectively. In late 1984, a new $150 million revolving joint credit facility was added under which the maximum borrowing limits for the Company and WMECO are $150 million and $45 million, respectively. There were no borrowings under either of these agreements i
during 1984. The Company, along with other system companies, also has l $48 million of joint credit line agreements with various regional banks, of which $40 million was available as of December 31, 1984. Rate Matters Sufficient rate levels granted on a timely basis in both its regulatory jurisdictions are key factors to enable the Company to achieve satisfactory l operating results, increase its internal cash generation and assure the ability to enter the capital markets at a reasonable cost. Therefore, the l Company will continue to evaluate the need to file rate applications in its I retail and wholesale jurisdictions. Improved earnings made possible by past rate relief, an unexpectedly high level of sales and effective cost l containment measures made it unnecessary for the Company to seek higher rates during 1984. The DPUC has scheduled hearings for March 1985 to reconsider i rate levels because the Company is currently earning an equity return above that allowed in its December 1983 retail rate case decision. No date for completion of the DPUC reconsideration has been established. In 1985, the Company expects to file rate applications in both its regulatory jurisdictions to reflect anticipated increases in the cost of providing service and the inclusion of Millstone 3 costs in the Company's rates when the unit enters service, as scheduled, in May 1986, although the timing and the amounts of such filings have not been determined. t
RESULTS OF OPERATIONS Operating Revenues Operating revenues increased $181.6 million from 1983 to 1984 and $95.0 million from 1982 to 1983. The components of the change in operating revenues for the past two years are as follows: Changes in Operating Revenues Increase /(Decrease) 1984 vs. 1983 vs. 1983 1982 (Millions of Dollars) Rate increases $ 73.8 $ 95.8 Fuel cost recoveries 50.9 (43.9) Sales increases and other 56.9 43.1 Total revenue increase $181.6 $ 95.0 In 1984, electric sales increaseo 5.2 percent and gas sales increased 7.3 percent. These increases resulted primarily from improved economic conditions in the Company's service area. A 4.3 percent increase in electric sales during 1983 was primarily attributable to warmer than normal summer weather and the improved economic conditions. Gas sales decreased 4.3 percent in 1983 compared to 1982 primarily as a result of lower heating requirements in 1983 and some industrial customers switching from gas to oil. The increase in fuel cost recoveries during 1984 is primarily attributable to the combination of the recovery of electric energy costs on a higher level of sales and the recovery of deferred energy costs from prior years. This increase was offset partially by lower gas fuel cost recoveries as a result of lower prices in 1984. The change in fuel cost recoveries during 1983 reflects the timing of when energy costs were recovered through rates and the effect of lower gas sales. Electric and Gas Energy Expenses Electric energy expenses, which include fuel and net purchased and interchange power, increased $70.8 million in 1984 compared to 1983 primarily because of higher kilowatt-hour (kWh) requirements and energy prices in 1984. Electric energy expenses decreased $49.5 million in 1983 compared to 1982 as a result of the matching of revenues and expenses under the provisions of the respective energy adjustment clauses. This decrease was partially offset by increased kWh requirements in 1983. Gas energy expenses decreased $18.0 million in 1984 compared to 1983 as a result of lower prices in 1984, offset partially by the effect of higher requirements in 1984. Gas energy expenses decreased $6.8 million in 1983 compared to 1982. This decrease can be attributed to lower requirements in 1983 which were offset partially by the effect of slightly higher gas prices.
Other Operation and Maintenance Expenses Other operation and maintenance expenses increased $24.0 million in 1984 compared to 1983. Although inflation is at a lower rate than in previous years, it still continues to increase the costs for labor, materials and services. This increase was offset partially in 1984 by the effect of lower nuclear refueling and maintenance costs. Other operation and maintenance expenses increased $52.1 million in 1983 compared to 1982 primarily because of higher nuclear refueling and maintenance costs and the impact of inflation on most expenses. The Company also experienced higher capacity costs from Connecticut Yankee Atomic Power Company and lower sales of capacity to other electric utilities. Taxes Federal and state income taxes increased $47.6 million in 1984 compared to 1983 and $39.9 million in 1983 compared to 1982. These increases are attributable to an increase in income in both years and, in 1983, the effect of an increase in the Connecticut Corporation Business Tax rate. In addition, taxes other than income taxes increased $9.2 million in 1984 compared to 1983 and $8.9 million in 1983 compared to 1982. These increases are primarily the result of the Connecticut Gross Receipts Tax on a higher level of revenues. Interest Charges Interest charges increased $20.1 million in 1984 compared to 1983 primarily because of higher borrowing levels in 1984, reflecting the need for additional capital to finance the Company's share of Millstone 3 construction costs. Interest charges decreased $0.7 million in 1983 compared to 1982 primarily as a result of lower short-term borrowings and lower interest rates during 1983. The decrease in short-term borrowings was a result of the issuance of new intermediate- and long-term debt and equity securities during 1983. Allowance for Funds Used During Construction The increase in AFUDC of $25.2 million in 1984 and $28.1 million in 1983 was caused by higher average construction work in progress (CWIP) balances attributable primarily to the Millstone 3 construction project. The increase in AFUDC during 1984 was reduced partially by the effect of including about
$90 million of the Company's CWIP in rate base.
I Impact of Inflation See Note 10 " Impact of Changing Prices," of Notes to Financial Statements for a discussion on the impact of inflation on the Company. f 1
The Connecticut Light and Power Company STATEMENTS OF INCOME For the Years Ended December 31, 1984 1983 1982 (Thousands of Dollars) Operating Revenues...................... $1,779,238 $1,597,624 $1,502,645 Operating Expenses: Operation-Fuel................................. 479,861 296,909 403,631 Purchased and interchange power, net. (23,193) 88,962 31,779 Gas purchased for resale............. 122,859 140,882 147,637 0ther................................ 377,620 346,567 316,929 Maintenance........................... 105,292 112,377 89,936 Depreciation.......................... 99,511 95,579 88,145 Federal and state income taxes (Note 4)............................. 182,885 135,648 95,241 Taxes other than income taxes......... 142,825 133,605 124,688 Total operating expenses........... 1,487,660 1,350,529 1,297,986 Operating Income........................ 291,578 247,095 204,659 Other Income: Allowance for equity funds used during construction.................. 87,383 67,958 41,694 Equity in earnings of regional nuclear generating companies......... 8,689 8,108 6,734 Other, net............................ (2,710) (3,229) (1,908) Income taxes applicable to other income-credit........................ 40,230 33,938 30,989 Net other income................... 133,592 106,775 77,509 Income before interest charges..... 425,170 353,870 282,168 Interest Charges: Interest on long-term debt............ 172,185 151,893 135,821 Other interest........................ 4,176 4,365 21,125 Allowance for borrowed funds used during construction, net of income taxes................................ (35,418) (29,595) (27,738) Total interest charges............. 140,943 126,663 129,208 Net Income.............................. $_ 284,227 $ 227,207 $ 152,960 The accompanying notes are an integral part of these financial statements.
The Connecticut Light and Power Company STATEMENTS OF SOURCES OF FUNDS FOR GROSS PROPERTY ADDITIONS For the Years Ended December 31, 1984 1983 1982 (Thousands of Dollars) Funds Generated From Operations: Net income.................................. $284,227 $227,207 $152,960 l i Principal noncash items: l Depreciation............................. 99,511 95,579 88.145 Prior period spent fuel disposal costs... 6,438 10,063 1,592 l Deferred income taxes, net............... 93,427 103,384 43,742 Other amortizatics and noncash items..... 10,707 5,659 7,646 Amortization of energy adjustment clauses 3,322 (7,779) 59,032 Allowance for equity funds used during construction............................ (87,383) (67,958) (41,694) Total funds from operations......... 410,249 366,155 311,423 Less-Cash dividends paid on: Common stock............................. 118,440 111,351 79,624 Preferred stock.......................... 35,592 30,578 26,287 Net funds generated from operations. 256,217 224,226 205,512 Funds Obtained From Financing: Long-term debt.............................. 230,800 95,000 160,000 Preferred stock............................. - 50,000 40,000 Increase (decrease) in construction trust... (72,830) 26,689 96.006 Decrease in short-term debt................. (5,000) (11.575) (151,910) Increase in obligations under capital leases 84,688 62,646 219,886 Capital contributions from Northeast Utilities (parent company)................. 30,000 80,000 110,000 Tota 1............................... 267,658 302,760 473,982 Less-Reacquisitions and retirements of long-term debt and preterred stock....... 19,188 9,906 151,383 Net funds from financing............ 248,470 292,854 322,599 l Other Sources (Uses) of Funds: Changes in components of working capital: Cash and special deposits................ (13,034) (2,226) 7,471 Receivables and accrued utility revenues. (40,138) (9,573) (7,898) Fuel, materials and supplies............. (2,792) 10,896 (1,983) Accounts payable......................... (15,161) 13,659 (20,921) Accrued taxes............................ 42,523 (18,223) 15,770 Other, net............................... 14,840 8,371 (3,552) Net change.......................... (13,762) 2,904 (11,113) Transfer of nuclear fuel disposal costs and related taxes from affiliated company...... - - 24,556 Enorgy adjustment clauses, net.............. 10,329 (53,824) (8,307) Other, net.................................. 4,275 (8,940) 1,640 Net other sources (uses) of funds... 842 (59,860) 6,776 Total Funds For Construction From Above Sources...................................... 505,529 457,220 534,887 Allowance For Equity Funds Used During Construction................................. 87,383 67,958 41,694 GRO SS P ROP ERTY ADD IT ION S . . . . . . . . . . . . . . . . . . . . . . $592,912 $525,178 $576.581 Composition of Gross Property Additions: Electric utility plant...................... $487,484 $446,644 $372,881 Gas utility p1 ant........................... 20,773 18,553 22,088 Nuclear fue1................................ 84,655 59,981 181,612 Tota 1............................... $592,912 $525,178 $576,581 The accompanying notes are an integral part of these financial statements.
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The Connecticut Light and Power Company l BALANCE SHEETS I i l At December 31, 1984 1983 (Thousands of Dollars) Assets Utility Plant, at original cost: Electric........................................ $2,632,726 $2,559,158 Cas............................................. 256,968 238,674 2,889,694 2,797,832 Less: Accumulated provision for depreciation. 965,357 885,383 1,924,337 1,912,449 Construction work in progress (Note 8).......... 1,737,878 1,338,814 Nuclear fuel, net (Note 3)...................... 271,827 244,755 Total net utility plant...................... 3,934,042 3,496.018 Other Property and Investments: Investments in regional nuclear generating companies and subsidiary companies, at equity.. 49,701 49,693 Other, at cost.................................. 13,105 9,849 62,806 59,542 Current Assets: Cash and special deposits (Note 2).............. 16,419 3,385 Receivables, less accumulated provision for uncollectible accounts of $7,674,000 in 1984 and $7,450,000 in 1983......................... 166,782 161,375 Receivables from affiliated companies........... 57,300 23,298 Accrued utility revenues........................ 81,761 81,032 Fuel, materiala and supplies, at average cost... 94,624 91,832 Recoverable energy costs........................ 10,274 - Prepayments and other........................... 5,755 6,261 432,915 367,183 Deferred Charges: Unamortized debt expense........................ 6,632 4,926 Energy adjustment clauses, net.................. 36,033 60,159 Unrecovered spent nuclear fuel disposal costs... 12,301 18,996 0ther........................................... 10,412 22,169 65,378 106,250 Total Assets................................. $4,495,141 $4,028,993 The accompanying notes are an integral part of these financial statements.
The Connecticut Light and Power Company BALANCE SHEETS At December 31, 1984 1983 (Thousands of Dollars) Capitalization and Liabilities Capitalization: Common stock - $10 par value. Authorized 24,500,000 shares; outstanding 12,222,930 shares.......................................... $ 122,229 $ 122,229 Capital surplus, paid in......................... 613,397 583,361 Retained earnings................................ 588,794 458,599 Total common stockholder's equity............. 1,324,420 1,164,189 Cumulative preferred stock -
$50 par value. Authorized 9,000,000 shares; outstanding 7,861,905 shares in 1984 and 7,894,102 shares in 1983 Not subject to mandatory redemption (Note 5). 256,195 256,195 Subject to mandatory redemption (Note 6)..... 135,892 137,393 Long-term debt, net (Note 7)..................... 1,819,516 1,685,374 Total capitalizaticn.......................... 3,536,023 3,243,151 Obligations Under Capital Leases (Note 3).......... 256,262 227,794 Current Liabilities:
Notes payable to banks (Note 2).................. 18,000 6,500 Commercial paper (Note 2)........................ - 16,500 Long-term debt and preferred stock-current portion......................................... 23,975 18,154 Obligations under capital leases - current portion (Note 3)................................ 57,171 44,296 Accounts payable................................. 66,512 70,726 Accounts payable to affiliated companies......... 49,003 59,950 Accrued taxes.................................... 100,936 58,413 Accrued interest................................. 56,669 40,093 0ther............................................ 16,975 14,033 389,241 328,665 Deferred Credits: Accumulated deferred income taxes................ 121,910 128,528 Accumulated deferred investment tax credits...... 181,284 91,523 0ther............................................ 10.421 9,332 313,615 229,383 Commitments and Contingencies (Note 8) Total Capitalization and Liabilities.... $4,495,141 $4,028,993 The accompanying notes are an integral part of these financial statements.
Tha C:nn;cticut Lfght cnd Pow 2r Compsny STATEMENTS OF COMMON- STOCKHOLDER'S EQUITY Capital Common Su rplus , Retained Stock Paid in Earnings Total (Thousands of Dollars) l Balance at January 1, 1982......... $122,229 $396,282 $326,272 $ 844,783 Net income for 1982.............. 152,960 152,960 t Cash dividends on preferred l stock........................... (26,287) (26,287) f Cash dividends on common stock... (79,624) (79,624) l Capital contribution from f Northeast Utilities (parent company)........................ 110,000 110,000 Preferred stock issuance and retirement expenses............. (1,818) (1,818) Balance at December 31, 1982....... 122,229 504,464 373,321 1,000,014 Net income for 1983.............. 227,207 227,207 Cash dividends on preferred stock........................... (30,578) (30,578) Cash dividends on common stock... (111,351) (111,351) Capital contribution from Northeast Utilities (parent company)........................ 80,000 80,000 Preferred stock issuance and retirement expenses............. (1,103) (1,103) Balance at December 31, 1983....... 122,229 583,361 458,599 1,164,189 Net income for 1984.............. 284,227 284,227 Cash dividends on preferred stock........................... (35,592) (35,592) Cash dividends on common stock... (118,440) (118,440) Capital contribution from Northeast Utilities (parent company)........................ 30,000 30,000 Cain on reacquired preferred stock net of issuance and retirement expenses............. 36 36
-Balance at December 31, 1984 (a)... $122,229 $613,397 $588,794 $1,324,420 (a) At December 31, 1984, there was approximately $319,194,000 of retained earnings available for payment of cash dividends on common stock under
'the provisions of the Company's First Mortgage Indenture and Deed of Trust.
The accompanying notes are an integral part of these financial statements.
The Connecticut Light and Power Company NOTES TO FINANCIAL STATEMENTS
- 1.
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES General: The Connecticut Light and Power Company (the Company), Western Massachusetts Electric Company (WMECO) and Holyoke Water Power Company (HWP) are the operating subsidiaries comprising the Northeast Utilities system (the system) and are wholly owned by Northeast Utilities (NU). Other wholly owned subsidiaries of NU provide substantial support services to the system. Northeast Utilities Service Company supplies centralized accounting, administrative, data processing, engineering, financial, legal, operational, planning, purchasing and other services to the system companies. Northeast Nuclear Energy Company acts as agent for system companies in constructing and operating nuclear generating facilities. NU also has two subsidiary realty companies, The Rocky River Realty Company and The Quinnehtuk Company. All transactions among affiliated companies are on a recovery of cost basis which may include amounts representing a return on equity, and are subject to approval of various federal and state regulatory agencies. Public Utility Regulation: NU is registered with the Securities and Exchange Commission (SFC) as a holding company under the Public Utility Holding Company Act of 1935, and it and its subsidiaries, including the Company, are subject to the provisions of the act. Arrangements among the system companies, outside agencies and other utilities covering inter-connections, interchange of electric power and sales of utility property are subject to regulation by the Federal Energy Regulatory Commission (FERC) and/or the SEC. The Company is subject to further regulation for rates and other matters by the FERC and the Connecticut Department of Public Utility Control (DPUC), and follows the accounting policies pre-scribed by the respective commissions. Investments: The Company owns common stock of four regional nuclear generating companies. These companies, with the Company's ownership interests, are: Connecticut Yankee Atomic Power Company (CY) 34.5% Yankee Atomic Electric Company 24.5% Maine Yankee Atomic Power Company 12.0% Vermont Yankee Nuclear Power Corporation (VYNPC) 9.5% The Company's investments in these companies are accounted for on the equity basis. The electricity produced from these facilities is committed to the participants based on their ownership interests and is billed pursuant to contractual agreements. p Revenues: Utility revenues are based on authorized rates applied to each customer's use of electricity or gas. Rates can be increased only through ) a formal proceeding before the appropriate regulatory commission. At the end of each accounting period, the Company accrues an estimate for the ( amount of energy delivered but unbilled. L _ _ _ _ _
The Conn:cticut Light and Power Company NOTES TO FINANCIAL STATEMENTS Spent Nuclear Fuel Disposal Costs: Under the Nuclear Waste Policy Act of 1982, the Company is paying the United States Department of Energy (DOE), on a quarterly basis, a fee of 1.0 mill per kilowatt-hour (kWh) based on the Company's share of nuclear generation beginning April 7, 1983, for the disposal of spent nuclear fuel and high-level radioactive vaste. For nuclear fuel used to generate electricity prior to April 7, 1983, the fees are based on the Company's share of the amount of energy extracted from such fuel. Fees due to the DOE for the disposal of nuclear fuel used prior to April 7, 1983, are approximately $66.6 million, excluding interest. The Company has until June 1985 to determine a payment arrangement for these fees. As of December 31, 1984, approximately
$54.2 million has been collected through rates.
The DPUC has allowed for the recovery of spent nuclear fuel disposal costs through rates based on the provisions of the Nuclear Waste Policy Act of 1982. Depreciation: The provision for depreciation is calculated using the straight-line method based on estimated remaining useful lives of depreciable utility plant in service, adjusted for net salvage value and removal costs as approved by the DPUC. Except for major facilities, depreciation rates are applied to the average plant in service during the period. Major facilities are depreciated from the time they are placed in se rvic e . When plant is retired from service, the original cost of plant, including costs of removal, less salvage, is charged to the accumulated provision for depreciation. The depreciation rates for the several classes of electric and gas plant in service are equivalent to the following composite rates: Year Electric Gas 1984 3.5% 4.1% 1983 3.5 4.2 1982 3.5 2.8 Nuclear Decommissioning: A 1983 decommissioning study indicates that immediate dismantlement at retirement is the most viable and economic method of decommissioning the Millstone 1 and 2 nuclear units in which the Company has an 81 percent ownership interest. The Company's share of the total estimated cost of decommissioning these units is $219 million in year-end 1984 dollars. Decommissioning studies are reviewed and updated periodically to reflect changes in decommissioning requirements, technology and inflation. As of December 31, 1984, the Company has collected through rates $26.3 million for future decommissioning costs. Although a substantial portion of the estimated total decommissioning costs has been approved by regulatory agencies and is reflected in depreciation expense, the Company believes revenues in amounts higher than those currently being collected will be required to pay the full projected costs of decommissioning.
Tha Connzcticut Light and Power Company NOTES TO FINANCIAL STATEMENTS Income Taxes: The tax effect of timing dif ferences (dif ferences between the periods in which transactions affect income in the financial statements and the periods in which they affect the determination of income subject to tax) is accounted for in accordance with the ratemaking treatment of the I applicable regulatory commissions. The Company did not provide deferred income taxes for certain timing differences during periods when the DPUC did not permit the recovery of such income taxes through rates charged to customers. The cumulative net amount of income tax timing differences for which deferred taxes have not been provided was approximately $921 million at December 31, 1984. As allowed under current regulatory practices, deferred taxes not previously provided are being collected in customers' rates as such taxes become payable. l l Investment tax credits, which reduce federal income taxes currently l payable, are deferred and amortized over the useful life of the related utility plant. At December 31, 1984, the Company had unused and unrecorded investment tax credits of approximately $3 million, which are available to offset federal income tax provisions through 1999. See Note 4 for the components of income tax expense. Allowance for Funds Used During Construction (AFUDC): AFUDC represents the estimated cost of capital funds used to finance the Company's construction program. These costs, which are one component of the total capitalized cost of construction, generally are not recognized as part of the rate base for ratemaking purposes until facilities are placed in service. AFUDC is recovered over the service life of plant in the form of increased revenue collected as a result of higher depreciation expense. l In its December 1983 rate decision, the DPUC allowed the Company
$19 million of revenues to support a portion of Millstone 3 construction costs in rate base. AFUDC is not applied to those construction costs.
The effective AFUDC rates for 1984, 1983, and 1982 were 9.3 percent, 9.2 percent, and 8.8 percent, respectively. These rates are calculated using the net-of-income tax method and in accordance with FERC guidelines. Retirement Plan: The Company participates in the Northeast Utilities Service Company Retirement Plan (the Plan) . The Plan, which covers all regular system employees, is noncontributory. The system's policy is to fund annually the actuarially determined contribution, which includes that year's normal cost, the amortization of prior years' actuarial gains or losses over 15 years, and the amortization of prior service cost over a period of 40 years. The Company's allocated portion of the system's pension cost, part of which was charged to utility plant, approximated
$13.9 million in 1984, $15.2 million in 1983 and $13.1 million in 1982.
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Th2 Connscticut Light and Power Company NOTES TO FINANCIAL STATEMENTS The actuarial present value of accumulated plan benefits and plan net assets available for benefits for the Plan is: January 1, 1984 1983 (Thousands of Dollars) P Benefits: Vested.............. $310,498 $283,246 Nonvested........... 41,244 33,109
$351,742 $316,355 Net assets available for benefits........ $446,949 $377,723 The assumed rate of return used to determine the actuarial present value of accumulated plan benefits was 7.5 percent for 1984 and 1983.
In addition to pension benefits, the Company provides certain health care and life insurance benefits to eligible retired employees. The cost of providing those benefits was approximately $2,949,000 in 1984,
$2,695,000 in 1983 and $2,000,000 in 1982. The Company recognizes health care benefits primarily as incurred and provides for life insurance benefits through premiums paid to an insurance company.
Energy Adjustment Clauses: The Company's retail electric and gas rates include adjustment clauses under which fossil fuel prices and purchased power costs and purchased gas costs above or below base rate levels are charged or credited to customers. As prescribed by the DPUC, most differences between the Company's actual fossil fuel and purchased gas costs and the current cost recoveries are deferred until future recovery is permitted. The Company's retail base electric rates include a 70 percent composite nuclear generation component. The DPUC has approved the use of a generation utilization adjustment clause which levels the effect on fuel costs caused by variations from a 70 percent composite nuclear generation capacity factor. When actual nuclear performance is above 70 percent, fuel costs are lower than amounts included in base rates, and when nuclear performance is below 70 percent, fuel costs are higher than amounts included in base rates. At the end of a 12-month period ending July 31 of each year, these net variations from the amounts included in base rate cost levels are refunded to or collected from customers over the subsequent Il-month period. Should the composite capacity factor fall below 55 percent, a public hearing is required before collection from customers is permitted. 1 J
Tha Connteticut Light and Pow r Company NOTES TO FINANCIAL STATEMENTS
- 2. SHORT-TERM DEBT The Company and WMECO have joint credit lines of $350 million, pursuant to revolving credit / term loan agreements with two groups of banks.
The maximum borrowing limit of the Company under the agreements is $350 million less amounts (not to exceed $105 million) borrowed by WMECO. The Company is obligated to pay commitment fees of up to three-eighths of 1 percent per annum on its proportionate share of the daily average of the unborrowed portion of the aggregate commitment. At December 31, 1984, the Company had no borrowings under these agreements. The Company uses bank loans and commercial paper to assist in financing its continuing construction program on a short-term basis and to meet general working capital needs. The system companies have joint bank credit lines totaling $48 million. Terms call for interest rates not to exceed the prime rate during the borrowing term. Although these lines generally are renewable, the continuing availability of the unused lines of credit is subject to review by the banks involved. Compensating balances for the system companies are maintained in connection with these bank credit lines which, at December 31, 1984, amounted to $2.4 million. At December 31, 1984, the amount of unused available borrowing capacity under the credit lines available to the system companies was $46 million. Cash and special deposits at December 31, 1984, included $14.6 million of restricted funds which must be used for future expenditures relating to the installation of pollution control equipment at Millstone 3 and Seabrook unit 1.
- 3. LEASES The Company and WMECO have entered into a capital lease agreement to finance up to $530 million of nuclear fuel for Millstone 1 and 2 and their share for Millstone 3. The Company and WMECO make quarterly lease payments for the cost of nuclear fuel consumed in the reactors plus financing costs associated with the fuel in the reactors (based on a units-of-production method at rates which reflect estimated kWhs of energy provided). Upon permanent discharge from the reactors, ownership of the nuclear fuel transfers to the Company and WMECO.
The Company has also entered into lease agreements, some of which are capital leases, for the use of substation equipment, office equipment, vehicles, and office space. The provisions of these lease agreements generally provide for renewal options. Commencing in 1984, the Company classified its leeacs in accordance with the provisions of Statement of Financial Accounting Standards (SFAS) No. 13. " Accounting for Leases" and SFAS No. 71, " Accounting for the Effects of Certain Types of Regulation," which required balance sheet recognition of capital leases. The adoption of SFAS No. 13 has been retroactively applied to the 1983 balance sheet. There is no effect on the I 1
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'Tha Connscticut Light and Powar Company NOTES TO FINANCIAL STATEMENTS Company's results of operations. Following are the rental payments charged to operating expense:
Capital Operating Year Leases Leases
)
1984............... $76,777,000 $22,073,000 l 1983............... 36,858,000 18,331,000 1982............... 6,167,000 15,620,000 Interest included in capital lease rental payments was $18,554,000 in 1984, $11,843,000 in 1983 and $2,139,000 in 1982. Substantially all of the capital lease rental payments were made pursuant to the nuclear fuel lease agreement. Future minimum lease
. payments, under the nuclear fuel capital lease cannot be reasonably estimated on an annual basis due to variations in the usage of nuclear fuel.
Future minimum rental payments, excluding annual nuclear fuel lease payments and executory costs such as real estate taxes, state use taxes, insurance and maintenance, under long-term noncancelable leases as of December 31, 1984, are approximately: Capital Operating Year Leases Leases (Thousands of Dollars) 1985............................... $ 1,700 $ 19,000 1986............................... 1,700 17,100 1987............................... 1,700 11,700 1988............................... 1,700 7,100 1989............................... 1,600 4,600 After 1989......................... 18,800 42,500 Future minimum lease payments...... 27,200 $102,000 Less amount representing interest.. 15,100 Present value of future minimum lease payments for other than nuclear fue1...................... 12,100 Present value of future nuclear fuel lease payments............... 301,300 l
$313,400 Total.........................
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[: Tha Connscticut Light and Powsr Company NOTES TO FINANCIAL STATEMENTS
- 4. INCOME TAX EXPENSE The components of the federal and state income tax provisions are:
For the Years Ended December 31, 1984 1983 1982 - (Thousands of Dollars) Current income taxes: Federal...................... $ 16,342 $ (1,245) $ 3,552 State........................ 32,886 (429) 16,958 Total current.............. 49,228 (1,674) 20,510 Deferred income taxes, net: Investment taxes (credits)... 94,500 (8,525) 56,198 Federal...................... (1,437) 88,227 (9,132) State........................ 364 23,682 (3,324) Total deferred............ 93,427 103,384 43,742 Taxes on borrowed funds portion of AFUDC..................... 37,825 31,170 28,708 I Total income tax expense................... 180,480 132,880 92,960 Less: Income taxes (credits) included in other income, net of the tax effects of the borrowed funds portion of AFUDC.. (2,405) (2,768) (2,281) Income taxes charged to operating expenses........ $182,885 $135,648 $95,241 Deferred income taxes are comprised of the tax effects of timing differences as follows: Investment tax credits......... $94,500 $ (8,525) $56,198 Liberalized depreciation, excluding leased nuclear fuel 14,287 14,616 9,309 Construction overheads......... 14,895 14,709 8,673 Liberalized depreciation and capitalized interest on leased nuclear fuel.......... 326 21,583 - Decommissioning costs.......... (4,647) (923) (2,002) Settlement credits - nuclear fue1................. (859) (1,786) (690) Unbilled revenues.............. (1,483) 1,478 (310) Energy adjustment clauses...... (14,658) 36,159 (21,748) Spent nuclear fuel storage accruals..................... (4,248) 29,232 (837) Canceled nuclear proj ect. . . . . . . (1,877) (773) (1,121) Deferred unusual operating expense............ (1,934) (2,102) (2,885) 0ther.......................... -(875) (284) (845) Deferred income taxes, net. $93,427 $103,384 $43,742
.Th3 Cunn;cticut Light and Powar Comp ny NOTES TO FINANCIAL STATEMENTS The effective income tax rate is computed by dividing total income tax expense by the sum of such taxes and net income. The differences between the effective rate and the federal statutory income tax rate are:
For the Years Ended December 31, 1984 1983 1982 Federal statutory income tax rate.... 46.0% 46.0% 46.0% ! Tax effect of differences: l Additional depreciation for tax purposes.......................... 0.2 (0.5) (2.6) Allowance for equity funds used during construction - not recognized as income for tax purposes.......................... (8.6) (8.7) (7.8) Investment tax credit amortization.. (1.6) (1.3) (0.9) State income taxes, net of federal benefit............................ 4.7 4.4 3.0 Reversal of current tax reserves no longer required................. - (2.7) - Other, net.......................... (1.9) (0.3) 0.1 Effective income tax rate............ 38.8% 36.9% 37.8% i l
Tha Conn:cticut Light and Power Company NOTES TO FINANCIAL STATEMENTS
- 5. PREFERRED STOCK NOT SUBJECT TO MANDATORY REDEMPTION Details of preferred stock not subject to mandatory redemption outstanding are:
Shares Current Outstanding Redemption December 31, December 31, Description Price
- 1984 1984 1983 1982 (Thousands of Dollars)
$1.90 Series of 1947............ $52.50 163,912 $ 8,196 $ 8,196 $ 8,196 54.00 336,088 16,804 16,804 16,804 $2.00 Series of 1947............ 5,000 5,000 $2.04 Series of 1949............ 52.00 100,000 5,000 51.00 200,000 10,000 10,000 10,000 $2.06 Series E of 1954.......... 5,000 $2.09 Series F of 1955.......... 51.00 100,000 5,000 5,000 52.50 200,000 10,000 10,000 10,000 $2.20 Series of 1949............ 15,000 15,000 $3.24 Series G of 1968.......... 51.84 300,000 15,000 53.05* 400,000 20,000 20,000 20,000 $3.80 Series J of 1971.......... 15,000 15,000 $4.48 Series H of 1970.......... 53.33* 300,000 15,000 53.44* 400,000 20,000 20,000 20,000 $4.48 Series I of 1970.......... 50,000 50,000 $4.56 Series K of 1974.......... 53.22* 1,000,000 50,000 50.50 160,000 8,000 8,000 8,000 3.90% Series of 1949............ 5,200 4.50% Series of 1956............ 50.75 104,000 5,200 5,200 4.50% Series of 1963............ 50.50 160,000 8,000 8,000 8,000 50.50 100,000 5,000 5,000 5,000 4.96% Series of 1958............ 10,000 5.28% Series of 1967............ 51.43 200,000 10,000 10,000 51.44 200,000 10,000 10,000 10,000 6.56% Series of 1968............
7.60% Series of 1971............ 52.56* 199,925 9,996 9,996 9,996 53.21* 200,000 10,000 10,000 10,000 9.36% Series of 1970............ 14,999 9.60% Series of 1974............ 53.46* 299,970 14,999 14,999 Total preferred stock not subject to mandatory redemption 5,123,895 $256,195 $256,195 $256,195 0 Redemption prices reduce in future years. All or any part of each outstanding series of preferred stock may be redeemed by the Company at any time at established redemption prices plus accrued dividends to the date of redemption.
Th'a ConnIcticut Light and Powar Company NOTES TO FINANCIAL STATEMENTS
- 6. PREFERRED STOCK SUBJECT TO MANDATORY REDEMPTION Details of preferred stock subject to mandatory redemption outstanding are:
Shares Current Outstanding December 31, Redemption December 31, Description Price
- 1984 1984 1983 1982 (Thousands of Dollars)
$5.52 Series L of 1975 $54.14 292,099 $ 14,657 $ 15,770 $16,140 10.48% Series of 1980 55.24 500,000 25,000 25,000 25,000 11.52% Series of 1975 54.32 145,911 7,321 7,776 8,321 15.04% Series M of 1982 57.52 800,000 40,000 40,000 40,000 Adjustable Rate Series N of 1983 56.15 1,000,000 50,000 50,000 -
l 2,738,010 Less preferred stock to be redeemed within one year 1,086 1,153 568 Total preferred stock subject to mandatory redemption $135,892 $137,393 $88,893 At December 31, 1984, there were 8,000,000 shares of $25 par value preferred stock authorized and unissued.
- Redemption prices reduce in future years.
The $5.52 Series L of 1975 preferred stock ($5.52 Series) requires a sinking-fund sufficient to retire a minimum of 20,000 shares (or a maximum of 40,000 shares) at $50 per share each year. During 1984, 1983 and 1982 the Company had reacquisitions of the $5.52 Series of 22,966 shares, 5,290 shares, and 32,536 shares, respectively. The 10.48% Series of 1980 preferred stock (10.48% Series) requires a sinking-fund sufficient to retire a minimum of 20,000 shares (or a maximum of 40,000 shares) at $50 per share each year commencing July 1, 1986. There were no changes during 1984, 1983 and 1982 in , the 10.48% Series. The 11.52% Series of 1975 preferred stock (11.52% Series) requires a sinking-fund sufficient to retire a minimum of 10,000 shares (or a f maximum of 20,000 shares) at $50 per share each year. During 1984, 1983 and 1982, the Company had reacquisitions of the 11.52% Series of 9,231 shares, 11,103 shares and 11,576 shares, respectively. The 15.04% Series M of 1982 ! preferred stock (15.04% Series) requires a sinking-fund sufficient to retire j a minimum of 40,000 shares (or a maximum of 80,000 shares) at $50 per ahare each year commencing June 1, 1988. There were no changes in 1984, 1983 and 1982 in the 15.04% Series. The Adjustable Rate Series N of 1983 preferred stock (Adjustable Rate Series) requires a sinking-fund sufficient to retire a minimum of 50,000 shares (or a maximum of 100,000 shares) at $50 per share each year commencing October 1, 1988. There was no change in 1984 and 1983 in the Adjustable Rate Series. I J
The Connecticut Light and Power Company NOTES TO FINANCIAL STATEMENTS The minimum sinking-fund provisions of the series subject to mandatory redemption, for the years 1985 through 1989, aggregate $1,500,000 in 1985,
$2,500,000 in 1986 and 1987, and $7,000,000 in 1988 and 1989. All sinking fund requirements for the preferred stoc' subject to mandatory redemption have been met. In case of default on sinking-fund payments, no payments may he made on any junior stock by way of dividends or otherwise (other than in shares of junior stock) so long as the default continues. Any dividend payment in arrears on outstanding shares of preferred stock would prohibit the redemption or purchase of less than all of the preferred stock outstanding. All or part of either the $5.52 Series, the 10.48% Series, the 11.52% Series, the 15.04% Series or the Adjustable Rate Series may be redeemed by the Company at any time at established redemption prices plus accrued dividends to the date of redemption except that during the initial five-year redemption period the above series of preferred stock are subject to certain refunding limitations.
Tha Connteticut Light and Powar Ccmpany NOTES TO FINANCIAL STATEMENTS
- 7. LONG-TERM DEBT Details of long-term debt outstanding are:
December 31, 1984 1983 (Thousands of Dollars) First Mortgage Bonds: 2 3/4% Series L, due 1984.............. $ -
$ 10,000 3 1/4% Series N. due 1985.............. 20,000 20,000 3 7/8% Series 0, due 1988.............. 30,000 30,000 4 7/8% Series P. due 1990.............. 25,000 25,000 4 1/2% Series Q, due 1986.............. 9,600 9,600 4 3/8% Series R. due 1993.............. 25,000 25,000 6 % Series S, due 1997.............. 30,000 30,000 6 1/2% Series T, due 1998.............. 20,000 20,000 6 7/8% Series U, due 1998.............. 40,000 40,000 8 3/4% Series V, due 2000.............. 40,000 40,000 8 7/8% Series W, due 2000.............. 40,000 40,000 7 3/8% Series X, due 2001.............. 30,000 30,000 7 5/8% Series Y, due 2002.............. 50,000 50,000 7 5/8% Series Z, due 2003.............. 50,000 50,000 8 3/4% Series AA, due 2004.............. 65,000 65,000 11 % Series CC, due 2000.............. 39,304 39,680 8 7/8% Series DD, due 2007.............. 45,000 45,000 9 1/4% Series EE, due 2008.............. 40,000 40,000 14 3/8% Series FF, due 2010.............. 65,000 65,000 17 3/4% Series GC, due 1991.............. 65,000 65,000 15 % Series HH, due 2012.............. 100,000 100,000 12 1/4% Series II, due 1993.............. 85,000 85,000 12 3/8% Series JJ, due 1994.............. 75,000 -
3 1/8% Series D, due 1984.............. - 6,969 5 % Series, due 1987................. 15,000 15,000 4 3/8% Series E, due 1988.............. 18,000 18,000 4 1/4% Series, due 1993................. 15,000 15,000 4 1/2% Series, due 1994................. 12,000 12,000 5 5/8% Series, due 1997................. 20,000 20,000 6 1/2% Series, due 1998................. 10,000 10,000 7 1/8% Series, due 1998................. 25,000 25,000 9 1/4% Series, due 2000................. 20,000 20,000 7 5/8% Series, due 2001................. 30,000 30,000 7 1/2% Series, due 2002................. 35,000 35,000 7 1/2% Series, due 2003................. 40,000 40,000 9 1/4% Series, due 2004................. 30,000 30,000 11 1/2% Series, due 1995................. 19,804 20,186 9 3/8% Series, due 2008................. 40,000 40,000 13.35 % Series, due 1990................. 10,000 10,000 17.60 % Series, due 1989................. 20,000 20,000 15 5/8% Series, due 1992 ................ 40,000 40,000 Total First Mortgage Bonds.......... $1,388,708 $1,331,435
The Conn cticut Light and Powar Company NOTES TO FINANCIAL STATEMENTS l i December 31, 1984 1983 (Thousands of Dollars) Term Loan Agreements: Secured note, variable rate due 1988-1991........................... $ 150,000 $ 150,000 14.80%, due 1991..................... 75,000 - Millstone 3 Construction Trust, variable rate......................... 49,865 122,695 Pollution Control Notes: 5.90%, due 1998...................... 9,437 9,437 6.50%, due 2007...................... 16,000 16,000 Variable rate, due 2013-2014......... 90,800 10,000 Fees due for spent fuel disposal costs. 66,553 66,553 0ther.................................. 62 94 Less amounts due within one year....... 22,889 17,001 Unamortized premium and discount, net.. (4,020) (3,839) Long-term debt, net............... $1,819,516 $1,685,374 The Company and WMEC0 participate in a construction trust arrangement to assist in the financing of the Millstone 3 construction. Obligations under this arrangement are initially limited to $400 million. The trust was given a lien, junior to the lien of the Company's indenture, on the Company's interest in Millstone 3. Once Millstone 3 is in service, but beginning no later than 1988, the trust obligations are to be repaid over a four-year pericd. Interest costs of $7.9 million during 1984, $9.9 million during 1983 and
$6.1 million during 1982 were incurred and capitalized, net of income taxes, by the Company. The weighted average interest rate charged to the system by the trust was 11.5 percent in 1984, 10.8 percent in 1983 and 10.7 percent in 1982.
Long-term debt maturities and cash sinking-fund requirements on debt outstanding at December 31, 1984, for the years 1985 through 1989, are:
$24,406,000, $14,006,000, $19,391,000, $90,523,000 and $62,523,000, respectively. In addition, there are annual 1 percent sinking- and improve-ment-fund requirements, currently amounting to $12,206,000, $12,163,000,
$12,119,000, $12,075,000 and $12,031,000 for the years 1985 through 1989, respectively. Such sinking- and improvement-fund requirements may be satisfied by the deposit of cash or bonds or by certification of property additions.
All or any part of each outstanding series of first mortgage bonds may be redeemed by the Company at any time at established redemption prices plus accrued interest to the date of redemption, except certain series which are subject to certain refunding limitations during their respective initial five-year redemption periods. The 11% Series CC bonds require a sinking-fund sufficient to retire a minimum of $2,500,000 in principal amount each year. The 11 1/2% Series bonds require a sinking-fund sufficient to retire a minimum of $1,875,000 in principal amount each year.
Tha Connecticut Light and Power Company NOTES TO FINANCIAL STATEMENTS Essentially all of the Company's utility plant is subject to the lien of its first mortgage bond indentures.
- 8. COMMITMENTS AND CONTINGENCIES Construction Program: The Company is engaged in a continuous construction program and currently forecasts construction expenditures (including AFUDC) of $1.4 billion for the years 1985-1989, including $579 million for 1985. In addition, the Company estimates that nuclear fuel requirements will be 4
$253.8 million for the years 1985-1989, including $55.4 million for 1985.
The construction program is subject to periodic review and revision, and actual construction expenditures may vary from such estimates due to factors such as revised load estimates, inflation, revised nuclear safety regulations, delays, difficulties in the licensing process, the availability and cost of capital, and the granting of timely and adequate rate relief by regulatory commissions, as well as actions by other regulatory bodies. Millstone 3: At December 31, 1984, the Company's construction work in progress (CWIP) included an investment of $1.51 billion in Millstone 3. The unit is scheduled to be placed in service in May 1986. The Company projects that the construction cost of Millstone 3 will exceed the 1982 estimate of
$3.54 billion. The Company is now using a projected cost for the unit of
( $3.825 billion. The Company's share would represent an investment of )
$2.01 billion, based on its ownership share of 52.6115 percent.
In 1983, the Connecticut Legislature enacted a law limiting, with certain exceptions, the construction costs of Millstone 3 that may be included in a Connecticut electric company's rate base to $3.54 billion. The Company is not able at this time to determine how much, if any, of the total cost of Millstone 3 would not be recoverable because of this law. Should it l be determined that the law prevents the Company from recovering its prudent investment in Millstone 3, management intends to pursue appropriate measures, which could include seeking legislative change or administrative and court appeals to obtain full rate recognition of its prudent investment. During 1985, the Company expects to file rate applications in its retail and wholesale jurisdictions to reflect appropriate rate recognition of Millstone 3 costs when the unit begins commercial operation. The Company believes that it is entitled to full rate recognition of its prudently incurred investment in Millstone 3 at the time the unit begins commercial operation. Because the rate levels necessary to support such full recognition will be substantially higher than the Company's current rates, the Company expects the DPUC will consider requiring the costs associated with Millstone 3 be phased into rates over a limited number of years after j the unit enters service. i As part of required periodic management audits of utility companies, the DPUC engaged a management consulting firm to conduct a comprehensive audit of the prudence of the management and construction of Millstone 3. The audit will be conducted in two phases. The first phase will review the conduct of
- the project thrcugh September 30, 1984, and the second phase will review the project to completion. The first phase review is expected to be completed in
! mid-1985.
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l Tha Connecticut Light and Power Company NOTES TO FINANCI AL STATEMENTS Many of the joint owners of Millstone 3 are also joint owners of the Seabrook project (see "Seabrook" note following). Should any of the joint owners fail to meet their obligation for the construction of Millstone 3, the Company and WMEC0 have developed contingent financing plans to help assure that adequate resources will be available to complete the construction of Millstone 3. Seabrook: The Company has a 4.1 percent joint ownership interest in the two nuclear units in Seabrook, New Hampshire. At December 31, 1984, the Company's CWIP balance included an investment of approximately $135 million in Seabrook unit 1 and approximately $24 million in Seabrook unit 2. The Company projects that the cost to complete its share of Seabrook unit I will be approximately $77 million, which is higher than the cost estimate being used by the Seabrook project management. In 1984, the DPUC established a $4.7 billion limit, with certain exceptions, on the construction costs of Seabrook unit 1 that may be made part of rate base or otherwise included in rates of the Company. The Company believes that a limit on prudently incurred costs would not meet constitutional standards and has appealed the DPUC's decision to the Superior Court. In April 1984, construction of both Seabrook units was suspended shortly after the announcement of new cost and schedule estimates for both units. In July 1984, construction of Seabrook unit I was resumed. The DPUC conducted hearings on the economic viability of Seabrook unit 1 and in November 1984, determined that Seabrook unit 1 is economically and financially viable, is more desirable than cancellation, and its completion is in the public interest. Uncertainties such as the outcome of pending regulatory proceedings in states other than Connecticut, the ability of the various joint owners to make necessary financing arrangements, intervenor challenges and risks attendant to the licensing process could cause further delays. Completion of the unit, therefore, is not assured. Construction of Seabrook unit 2 has not been resumed. In a recent rate order for another Connecticut utility, the DPUC concluded that Seabrook unit 2 was effectively, if not technically, canceled. The Company will apply to the DPUC for recovery of its Seabrook unit 2 investment. If Seabrook unit I were to be canceled, the Company would also seek recovery. The Company cannot predict whether and to what extent full recovery of its Seabrook investments will be permitted. However, the Company believes that its Seabrook investments are recoverable based on past DPUC practices and previous DPUC orders with respect to Seabrook. Hydro-Quebec: The Company, WMECO and HWP, along with other New England Utilities, have entered into agreements related to the financing and construction of transmission and terminal facilities (Phase I) to import hydropower from the Hydro-Quebec System in Canada. The Company has a 19.5 percent interest in such facilities and will be responsible for its share of the total annual costs of the facilities when completed. The current construction forecast is $167.9 million, of which $38 million has been expended as of December 31, 1984. A mid-1986 in-service date is planned for Phase I.
Tha Connacticut Light and Power Company NOTES TO FINANCIAL STATEMENTS Nuclear Insurance Contingencies: The Price-Anderson Act currently limits public liability from a single incident at a nuclear power plant to $620 million. The first $160 million of liability would be covered by the maximum provided by private pool insurance. The additional liability of $460 million would be provided by an assessment of $5 million per incident levied on each of the 92 nuclear units operating in the United States, subject to a maximum assessment of $10 million per nuclear unit in any year. Based on the Company's ownership interests in the nuclear units currently in service, the maximum liability per incident would be $12.1 million, limited to a maximum i of $24.2 million in any year. Insurance has been purchased from Nuclear Electric Insurance Limited (NEIL) to cover (a) certain extra costs incurred in obtaining replacement power during a prolonged accidental outage with respect to the Company's ownership interests in Millstone 1 and 2 and CY; and (b) the cost of repair, replacement or decontamination of Company property resulting from insured events at Millstone 1, 2 and 3, CY, Maine Yankee Atomic Power Company and Vermont Yankee Nuclear Power Corporation. All companies insured with NEIL are subject to retroactive assessments if losses exceed the accumulated funds available to NEIL. The maximum potential assessments against the Company with respect to losses arising during current policy years are arnroximately
$14.6 million under the replacement power policy and $13.8 million inder the property damage and decontamination policy. Although the Company hac purchased the limits of coverage currently available from conventional nuclear insurance pools, the cost of a nuclear incident could exceed available insurance proceeds.
Financial Arrangements for the Regional Nuclear Generating Companies: The owners of CY, including the Company, have agreed to purchase their pro rata shares of up to $40 million of CY's subordinated notes. The Company's share i of the notes aggregate $13.8 million. As of December 31, 1984, there were no notes outstanding. This obligation will terminate in October 1985. The owners of CY, including the Company, have guaranteed their pro rata shares of $44 million 17% Series A Debentures. The guarantee of the Company under this arrangement aggregates $15.9 million. The owners of VYNPC, including the Company, have guaranteed their pro i rata shares of a $40 million nuclear fuel financing through the Vernon Energy Trust. The guarantee of the Company aggregates $3.8 million. The Company may be asked to provide additional capital and/or other types of direct or indirect financial support for one or more of the regional [ nuclear generating companies. f
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Tha Conn:cticut Light end Powar Company NOTES TO FINANCIAL STATEMENTS i
- 9. SEGMENTS OF BUSINESS l
The following summarizes information relating to the Company's ! electric and gas operations: ) For the Years Ended December 31, 1984 1983 1982 i (Thousands of Dollars) Operating information: Operating revenues-Electric..................... $1,554,808 $1,358,625 $1,278,198 Gas.......................... 224,430 238,999 224,447 Total...................... $1,779,238 $1,597,624 $1,502,645 Operating expenses excluding provisions for income taxes-Electric..................... $1,119,695 $1,013,964 $1,004,367 Gas.......................... 185,080 200,917 198,378 Tota 1..................... $1,304,775 $1,214,881 $1,202,745 Pretax operating income-Electric..................... $ 435,113 $ 344,661 $ 273,831 Gas.......................... 39,350 38,082 26,069 Total..................... $ 474,463 $ 382,743 $ 299,900 Provision for income taxes-Electric..................... $ 167,279 $ 119,578 $ 87,819 Gas.......................... 15,606 16,070 7,422 Total..................... $ 182,885 $ 135,648 $ 95,241 Operating income-Electric..................... $ 267,835 $ 225,083 $ 186,012 Gas.......................... 23,743 22,012 18,647 Total..................... $ 291,578 $ 247,095 $ 204,659 Depreciation expense-Electric..................... $ 89,455 $ 85,860 $ 82,351 10,056 9,719 5,794 Gas.......................... Tota 1..................... $ 99,511 $ 95,579 $ 88.145 Gross Property Additions: Electric........................ $ 572,139 $ 506,625 $ 554,493 Cas............................. 20,773 18,553 22,088 Tota 1....................... $ 592,912 $ 525,178 $ 576,581 u Tha Conn:cticut Light and Powsr Comp:ny NOTES TO FINANCIAL STATEMENTS For the Years Ended December 31, 1984 1983 1982 (Thousands of Dollars) Investment information at December 31: Identifiable assets (a) - Electric...................... $3,755,861 $3,326,103 $2,888,086 Gas........................... 207,872 195,854 186,417 , Nonallocable assets............. 531,408 507,036 441,429 Total Assets................ $4,495,141 $4,028,993 $3,515,932 (a) Includes construction work in progress, materials and supplies, and allocated common utility plant.
- 10. IMPACT OF CHANGING PRICES (UNAUDITED)
The following supplementary data was prepared in accordance with the requirements of SEAS No. 33, " Financial Reporting and Changing Prices." The methodology prescribed by SFAS No. 33, as amended, involves numerous assumptions and estimates and, therefore, the resulting information should be viewed as an approximation of the effects of inflation rather than a precise measure. As required by SFAS No. 33, the historical cost of plant, as stated in the Company's financial records, is adjusted for changing prices. This adjustment reflects the changing prices of plant from the date plant was placed in service to the present. This price adjustment does not necessarily represent the replacement cost of existing plant because such plant is not expected to be replaced precisely in kind. Specific prices may increase more or less rapidly than the general rate of inflation. The Company's price adjustment was determined by indexing historical plant using the Handy-Whitman Index of Public Utility Construction Costs. Nuclear fuel accounts reflect the current replacement cost of such fuel based on current market prices. Land was estimated by using the Consumer Price Index for all Urban Consumers. Depreciation expense was determined by applying the Company's depreciation rates to adjusted plant amounts. Other expense items were not adjusted because they were considered to be at average price levels for the year or were specifically excluded from adjustment by SEAS No. 33. As a result of the adjustment to depreciation, net income was reduced by
$117 million. The Company will eventually replace its plant assets at prices many times greater than the original historical cost even though it is unable to recover the replacement value of these assets through depreciation. At December 31, 1984, the current cost of fixed assets, net of accumulated depreciation, was $5.9 billion, while historical cost, or net cost recoverable through depreciation, was $3.9 billion. For 1984, the increase in general inflation ($220 million) exceeded the increase in specific prices
($77 million) after adjustment to net recoverable cost by $25 million.
Tha Conn 2cticut Light and Powar Company NOTES TO FINANCIAL STATEMENTS During periods of inflation, holders of net monetary assets suffer a loss of purchasing power, while holders of net monetary liabilities experience a gain because debt will be repaid in dollars having less purchasing power. As a result of the substantial amount of debt which was used to finance utility plant, the Company's gain from the decline in purchasing power of net amounts owed was $97 million. This " gain" is not realizable by the company, and therefore, cannot be considered additional funds for reinvestment or dividend distribution. Comparison of Selected Financial Data Adjusted for Changing Prices (In Average 1984 Dollars, Except Historical Amounts) Years Ended December 31, 1984 1983 1982 1981 1980 (Millions of Dollars, except index data) Operating revenues: Historical............................ $1,779 $1,598 $1,503 $1,366 $1,104 Adjusted for changing prices.......... 1,779 1,663 1,617 1,560 1,391 Net income (loss) (Excluding adjustment to net recoverable cost): Historical............................ $ 284 $ 227 $ 153 $ 105 $ 102 Adjusted for changing prices.......... 167 98 20 (28) 14 Net assets at year-end: Historical............................ $1,324 $1,164 $1,000 $ 845 $ 812 Adjusted for changing prices.......... 1,306 1,191 1,064 934 977 Amount by which the increase in general price level is greater than (or less than) the increase in specific prices after adjustment to net recoverable cost $ 25 $ (14) $ (35) $ 71 $ 205 Cain from decline in purchasing power of net amounts owed.............. $ 97 $ 83 $ 75 $ 166 $ 232 Average consumer price index............ 311.1 298.4 289.1 272.4 246.8 Th2 Conn 2cticut Light and Powar Company Auditors' Report To the Board of Directors of The Connecticut Light and Power Company: We have examined the balance sheets of The Connecticut Light and Power i Company (a Connecticut corporation and a wholly owned subsidiary of Northeast Utilities) as of December 31, 1984 and 1983, and the related statements of income, common stockholder's equity and sources of funds for gross property additions for each of the three years in the period ended December 31, 1984. Our examinations were made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the financial statements referred to above present fairly the financial position of The Connecticut Light and Power Company as of December 31, 1984 and 1983, and the results of its operations and the sources of funds for gross property additions for each of the three years in the period j ended December 31, 1984, in conformity with generally accepted accounting principles applied on a consistent basis after giving retroactive effect to the change, with which we concur, in the method of accounting for capital leases as described in Note 3 of Notes to Financial Statements. ARTHUR ANDERSEN & CO. Hartford, Connecticut. February 18, 1985. i
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l
Th2 Connscticut Light c.nd Pow 2r Company SELECTED FINANCIAL DATA Years Ended December 31, 1984 1983 1982 1981 1980 (Thousands of Dollars) Operating Revenues.... $1,779,238 $1,597,624 $1,502,645 $1,365,653 $1,103,896 Operating Income...... 291,578 247,095 204,659 174,890 153,618 Net Income............ 284,227 227,207 152,960 104,568 102,143 Total Assets.......... 4,495,141 4,028,993 3,478,644 3,116,424 2,863,659 Long-Term Debt *....... 1,842,405 1,702,375 1,523,182 1,416,710 1,207,407 Preferred Stock Subject to Mandatory Redemption *.......... 136,978 138,546 89,461 51,601 53,209 Obligations Under Capital Leases *...... 313,433 272,090 232,428 11,810 10,522
- Includes portions due within one year.
STATEMENTS OF QUARTERLY FINANCIAL DATA (Unaudited) Quarter Ended 1984 March 31 June 30 September 30 December 31 (Thousands of Dollars) l Operating Revenues.... $498,938 $405,855 $426,902 $447,543 l Operating Income...... $ 91,360 $ 59,040 $ 73,880 $ 67,298 f Net Income............ $ 87,310 $ 56,245 $ 73,415 $ 67,257 1983 Operating Revenues.... $437,782 $355,177 $386,325 $418,340 Operating Income...... $ 76,780 $ 51,980 $ 58,085 $ 60,250 Net Income............ $ 69,936 $ 45,562 $ 53,931 $ 57,778
Th2 C:nnecticut Light and Powar CompIny STATISTICS At December 31, 1984 1983 1982 1981 1980 Electric: Operating Revenues (thousands)....... $1,554,808 $1,358,625 $1,278,198 $1,184,385 $ 958,512 kWh Sales (millions)........ 17,502 16,639 15,950 16,779 16,736 Customers 1 (average)......... 941,839 925,193 916,525 906,688 896,997 Cas: Operating Revenues (thousands)....... $ 224,430 $ 238,999 $ 224,447 $ 181,268 $ 145,384 Average Annual Residential kWh Use............... 7,648 7,533 7,408 7,508 7,697 Cubic Feet of Gas Sales (millions).. 29,682 27,661 28,917 29,029 27,546 Average Annual Residential Cubic Feet of gas Used., 72,303 68,296 75,030 77,449 75,882 Customers (average) 156,452 154,808 152,329 150,901 148,574 Utility Plant (thousands)........ $4,899,399 $4,381,401 $3,858,064 $3,336,776 $3,062,254 Employees (December 31)...... 4,077 4,091 4,115 4,063 4,008 I
l i Th3 Crnn2cticut Light End Powar Comptny 1 First and Refunding Mortgage Bonds Trustee and Interest Paying Agent Bankers Trust Company, Corporate Trust and Agency Group P.O. Box 318, Church Street Station, New York, New York 10015 The First National Bank of Boston, Corporate Trust Department P.P. Box 1897, Boston, Massachusetts 02105 Preferred Stock Transfer Agent, Dividend Disbursing Agent and Registrar The Connecticut Bank and Trust Company, N.A. Stock Transfer Department One Constitution Plaza, Hartford, Connecticut 06115 Dividend Payment Dates 5.28%, 9.60%, 10.48%, 11.52%,
$3.24, $4.48 H, $4.48 I and Adjustable Rate N Series -
January 1, April 1, July 1, and October 1 4.50%, 4.96%, 6.56%, 9.36%,
$1.90, $2.00, $2.04, $2.06, $2.09, and $2.20 Series -
February 1, May 1 August 1, and November 1 3.90%, 4.50% (1963), 7.60%, 15.04%,
$3.80, $4.56, and $5.52 Series - March 1, June 1, September 1, and December 1 Address General Correspondence in Care of:
Northeast Utilities Service Company Investor Relations Department P.O. Box 270 Hartford, Connecticut 06141-0270 Tel. (203) 665-5000 General Office Selden Street, Berlin, Connecticut Thn data contained in this Report is submitted for the sole purpose of providing information to present stockholders about the Company.
(This page left intentionally blank) E 1 NORTHEAST UT LIT ES THE CONNECTICUT LIGHT AND POWER COMPANY WESTERN MASSACHUSETTS ELECTRIC COMPANY HOLYOKE WATER POWER COMPANY NORTHEAST UTIUTIES SERVICE COMPANY NORTHEAST NUCLE AR ENERGY COMPANY t l
Commonwealth Energy System 1984 Annual Report 1 l l
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