-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PpMBlA05h3Frb5QkfPNAiSa63E9WbiGhqfQkeFm0eZhkTmo9av/YzmeDa6YZ9Mo/ vNO+oCtzWo4GYKdXD7rcrA== 0000071304-96-000005.txt : 19960401 0000071304-96-000005.hdr.sgml : 19960401 ACCESSION NUMBER: 0000071304-96-000005 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960329 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAMBRIDGE ELECTRIC LIGHT CO CENTRAL INDEX KEY: 0000016573 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 041144610 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 002-07909 FILM NUMBER: 96541854 BUSINESS ADDRESS: STREET 1: ONE MAIN ST CITY: CAMBRIDGE STATE: MA ZIP: 02142 BUSINESS PHONE: 6172254000 MAIL ADDRESS: STREET 1: P O BOX 9150 CITY: CAMBRIDGE STATE: MA ZIP: 02142-9150 10-K 1 CAMBRIDGE ELECTRIC LIGHT COMPANY-1995 FORM 10-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549-1004 Form 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) [ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED] For the fiscal year ended December 31, 1995 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the transition period from _______________ to _______________ Commission file number 2-7909 CAMBRIDGE ELECTRIC LIGHT COMPANY (Exact name of registrant as specified in its charter) Massachusetts 04-1144610 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) One Main Street, Cambridge, Massachusetts 02142-9150 (Address of principal executive offices) (Zip Code) (617) 225-4000 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered None None Securities registered pursuant to Section 12(g) of the Act: Title of Class None Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES [ x ] NO [ ] Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Outstanding at Class of Common Stock March 15, 1996 Common Stock, $25 par value 346,600 shares The Company meets the conditions set forth in General Instruction J(1)(a) and (b) of Form 10-K as a wholly-owned subsidiary and is therefore filing this Form with the reduced disclosure format. Documents Incorporated by Reference Part in Form 10-K None Not Applicable List of Exhibits begins on page 38 of this report. CAMBRIDGE ELECTRIC LIGHT COMPANY FORM 10-K DECEMBER 31, 1995 TABLE OF CONTENTS PART I PAGE Item 1. Business.............................................. 3 General............................................ 3 Electric Power Supply.............................. 3 New England Power Pool............................. 5 Energy Mix......................................... 5 Regulation......................................... 5 (a) Wholesale Rate Proceedings.................. 5 (b) Rate Settlement Agreement................. 6 (c) Cost Recovery............................... 7 Rate Schedule............................. 7 Purchased Power........................... 7 Conservation and Load Management Programs. 7 Customer Transition Charge............... 7 (d) Electric Industry Restructuring............. 8 (e) Potential Impact of Regulatory Restructuring........................... 9 Competition........................................ 9 Environmental Matters.............................. 10 Construction and Financing......................... 10 Employees.......................................... 11 Item 2. Properties............................................ 11 Item 3. Legal Proceedings..................................... 11 PART II Item 5. Market for the Registrant's Common Stock and Related Stockholder Matters................................... 12 Item 7. Management's Discussion and Analysis of Results of Operations............................................ 13 Item 8. Financial Statements and Supplementary Data........... 16 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure................... 16 PART IV Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K........................................... 37 Signatures..................................................... 50 CAMBRIDGE ELECTRIC LIGHT COMPANY PART I. Item 1. Business General Cambridge Electric Light Company (the Company) is engaged in the production, distribution and sale of electricity at retail to approximately 44,500 customers in the city of Cambridge, Massachusetts. The service territory encompasses a seven square mile area with a population of approximately 96,000. In addition, the Company sells power for resale to the New England Power Pool (NEPOOL) and the Town of Belmont, Massachusetts (Belmont), and sells steam from its electric generating stations at wholesale to an affiliated company for distribution to customers for space heating and other purposes. The Company, which was organized on January 28, 1886 pursuant to a special act of the legislature of the Commonwealth of Massachusetts, operates under the jurisdiction of the Massachusetts Department of Public Utilities (DPU), which regulates retail rates, accounting, issuance of securities and other matters. The Company also files its wholesale rates with the Federal Energy Regulatory Commission (FERC). The Company is a wholly-owned subsidiary of Commonwealth Energy System (System), which, together with its subsidiaries, is referred to as "the system." By virtue of its charter, which is unlimited in time, the Company distributes electricity without direct competition in kind from any privately or municipally-owned utility. Alternate sources of energy are available to customers within the service territory. In early 1995, the Massachusetts Institute of Technology, one of the Company's largest customers, completed and placed into service a natural gas cogeneration facility which will meet approximately 94% of their power needs. For further information on this facility refer to the "Customer Transition Charge" section discussion which follows. Of the Company's 1995 retail electric unit sales, 11.8% was sold to residential customers, 81.7% to commercial customers, 5.9% to industrial customers and 0.6% to municipal and other customers. Electric Power Supply The Company owns generating facilities with a total capacity of 112.5 MW, of which 49.5 MW is used for peaking purposes. The Company relies primarily on purchased power to meet its energy requirements. Power purchases for the Company and Commonwealth Electric Company (Common- wealth Electric), the other wholly-owned electric distribution subsidiary of the System, are arranged in accordance with their requirements. These arrangements include purchases from Canal Electric Company (Canal), another wholly-owned subsidiary of the System. Canal is a wholesale electric generating company located in Sandwich, Massachusetts and is an important source of purchased power for the Company. Under long-term contracts, system entitlements include one-quarter (141.5 MW) of the capacity and energy of Canal Unit 1 and one-half (290 MW) of the capacity and energy of Canal Unit 2. CAMBRIDGE ELECTRIC LIGHT COMPANY The Company's entitlements in these units are 28.2 MW and 57.8 MW, respectively. Pursuant to a Capacity Acquisition and Disposition Agreement (CADA), Canal seeks to secure bulk electric power on a single system basis to provide cost savings for the customers of the Company and Commonwealth Electric. The CADA has been accepted for filing as an amendment to Canal's FERC rate schedule and allows Canal to act on behalf of the Company and Commonwealth Electric in the procurement of additional capacity for one or both companies. The CADA is in effect for Seabrook 1 and Phases I and II of Hydro-Quebec. Exchange agree- ments are in place with these utilities whereby, in certain circumstances, it is possible to exchange capacity so that the mix of power improves the pricing for dispatch for both the seller and the purchaser. Power contracts are in place whereby Canal bills or credits the Company and Commonwealth Electric for the costs or revenues associated with these facilities. The Company and Commonwealth Electric, in turn, have billed or are billing these charges (net of revenues from sales) to their customers through rates subject to DPU approval. The Company also has equity ownership interests (2 1/2% to 4 1/2%) in three operating nuclear units located in New England with power entitlements totaling 67.6 MW. One of the operating nuclear units, located in Wiscasset, Maine and operated by Maine Yankee Atomic Power Company (Maine Yankee), was experiencing degradation of its steam generator tubes, principally in the form of circumferential cracking, which until early 1995 was believed to be limited to a relatively small number of tubes. During a refueling and maintenance outage that began in early February 1995, Maine Yankee, through the use of new inspection methods, detected increased degradation involving approximately 60% of the tubes which was well beyond Maine Yankee's expectations. After carefully evaluating alternative courses of action to remedy this situation, Maine Yankee in late May declared it would perform repairs by sleeving all 17,000 steam generator tubes. Repairs, which cost approximately $26 million including the Company's share of $1 million, began in June and were completed in December 1995. The unit was returned to partial service in January 1996. In addition, the Company has entitlements of 19.7 MW and 8.1 MW through Canal's equity ownership in Hydro-Quebec Phase II and joint-ownership in the Seabrook nuclear unit, respectively. Additionally, on February 26, 1992, Yankee Atomic Electric Company's Board of Directors decided to permanently cease power operation at a nuclear unit located in Rowe, Massachusetts and, in time, decommission the facility. The Company has a 2% interest in this facility. For further information, refer to Note 3(e) of Notes to Financial Statements filed under Item 8 of this report. The Company expects to provide for future peak load plus reserve require- ments through existing system generation, including purchasing excess capacity from neighboring utilities. These and other bulk electric power purchases are necessary in order to fulfill the system's NEPOOL obligation and for Canal to acquire and deliver electric generating capacity to meet the Company's and Commonwealth Electric's requirements. CAMBRIDGE ELECTRIC LIGHT COMPANY New England Power Pool The Company, together with other electric utility companies in the New England area, is a member of NEPOOL, which was formed in 1971 to provide for the joint planning and operation of electric systems throughout New England. NEPOOL operates a centralized dispatching facility to ensure reliability of service and to dispatch the most economically available generating units of member companies to fulfill the region's energy requirements. This concept is accomplished through the use of computers to monitor and forecast load requirements. The Company and the System's other electric subsidiaries are also members of the Northeast Power Coordinating Council (NPCC), an advisory organization, which includes the major power systems in New England and New York plus the provinces of Ontario and New Brunswick in Canada. The NPCC establishes cri- teria and standards for reliability and serves as a vehicle for coordination in the planning and operation of these systems. The reserve requirements used by NEPOOL participants in planning future additions are determined by NEPOOL to meet the reliability criteria recom- mended by the NPCC. The system estimates that, during the next ten years, reserve requirements so determined will be in the range of 20% to 25% of peak load. Energy Mix The Company's energy mix, including purchased power, was as follows: 1995 1994 1993 Oil 23% 31% 43% Nuclear 36 43 44 Natural gas 40 25 12 Hydro 1 1 1 Total 100% 100% 100% The Company's energy mix shifted during 1994 from oil to natural gas and other types of generation due to the availability of capacity from an independent power producing facility and an effort to reduce its reliance on oil. The lower oil component in 1995 reflects Canal Unit 1 being off-line for the first seven months of the year and an additional outage period of nearly one month during the fourth quarter. In addition to power purchases, the Company is actively pursuing sales of certain available capacity to utilities in and outside the New England region. Regulation (a) Wholesale Rate Proceedings The Company provides power supply and transmission services to its FERC- jurisdictional wholesale customers. The Company requires FERC approval to change its wholesale rates, including those to the Municipal Light Department of the Town of Belmont, Massachusetts (Belmont), a "partial requirements" CAMBRIDGE ELECTRIC LIGHT COMPANY customer since 1986. Since February 1993 Belmont has taken power supply service under a FERC approved Net Requirements Power Supply Agreement. In 1993, the Company and Belmont began negotiations for a new transmission service agreement. The negotiations were not successful. On June 29, 1994 the Company filed for approval with the FERC a new transmission service agreement for service to Belmont. The FERC accepted the rates effective January 25, 1995, subject to refund. At the same time, an investigation was opened by the FERC to determine the reasonableness of both the existing transmission tariff rates to Belmont and the proposed transmission service agreement with Belmont. Both Belmont and FERC staff intervened in the investigation. The Company filed its case with the FERC on October 25, 1994 and evidentiary hearings were held in March 1995. An Initial Decision (ID) of the Presiding Administrative Law Judge was issued on September 14, 1995. In the ID the Administrative Law Judge found that the Company's existing transmission tariff rates were just and reasonable. The Administrative Law Judge identified a number of revisions to the filed transmission service agreement which effectively reduced the rates to Belmont. In October 1995, the parties filed briefs on exceptions to the Administrative Law Judge's ID. The Company awaits final FERC action on this investigation. (b) Rate Settlement Agreement In May 1995, the DPU approved settlement proposals sponsored jointly by the Company, Commonwealth Electric and the Attorney General of Massachusetts which resolved issues related to cost of service, rates, accounting matters and generating unit performance reviews. The Company's settlement agreement: (1) implemented a $1.5 million refund to the Company's customers through its Fuel Charge during the third and fourth quarters of 1995 including its share of excess deferred tax reserves related to Seabrook Unit 1 refunded in May 1995 to the Company by Canal Electric; (2) allows the Company to defer certain long-term purchased power and transmission capacity costs in excess of the amount of such capacity costs currently included in the Company's base rates up to an annual amount of $2 million for recovery in its next general retail base rate case; (3) prohibits the Company from seeking recovery of costs it incurred in obtaining cost savings through a work force reduction and restructuring, totaling approximately $400,000; and (4) includes the DPU's withdrawal of all related requests, appeals, motions or other issues raised by parties regarding certain generating unit performance reviews. The system's management is encouraged by the support provided through the Office of the Attorney General and believes that these settlements will eliminate the need for potentially costly litigation and regulatory proceedings and, by moderating rate impacts and enabling the system to remain competitive in a changing environment, the settlements are in the best interest of the system and its customers and shareholders. CAMBRIDGE ELECTRIC LIGHT COMPANY (c) Cost Recovery Rate Schedule The Company files a FC rate schedule, subject to DPU regulation, under which the Company is allowed current recovery from retail customers of costs of fuel used in electric generation and a substantial portion of purchased power, demand and transmission costs. This schedule requires the quarterly computation and DPU approval of a FC decimal based on forecasts of fuel, electricity purchased for resale and transmission costs and billed unit sales for each period. To the extent that collections under the rate schedule do not match actual costs for a given calendar quarter, an appropriate adjustment is reflected in the calculation of the Company's decimal for the next calendar quarter. Purchased Power The Company has long-term contracts for the purchase of electricity from various sources. Generally, these contracts are for fixed periods and require that the Company pay a demand charge for its capacity entitlement and an energy charge to cover the cost of fuel. The Company collects a portion of these capacity-related purchased power costs associated with certain long-term power and transmission agreements through base rates as approved by the DPU. Revenues collected through base rates are generally designed to reimburse the Company for all costs of operation other than fuel, the energy portion of purchased power, transmission and C&LM costs while providing a fair return on capital invested in the business. However, as a result of a DPU-mandated recovery mechanism for capacity-related costs associated with certain long- term purchased power contracts, the Company, because it collects through base rates a portion of its capacity-related purchased power costs associated with certain long-term power arrangements, has experienced a revenue excess or shortfall when unit sales and/or the costs recoverable in base rates vary from test-period levels. This issue, which has had a significant impact on the Company's net income, was addressed in a settlement agreement approved by the DPU in May 1995 which permits deferral of up to $2 million for these capacity- related purchased power costs. (Refer to the "Rate Settlement Agreement" section for additional details.) Conservation and Load Management Programs The Company has implemented a variety of cost-effective conservation and load management (C&LM) programs for its customers which are designed to reduce future energy use. On June 30, 1993, the DPU issued an order in Phase I of a C&LM cost recovery filing made by the Company and Commonwealth Electric which allows the recovery of "lost base revenues" from electric customers. The recovery of lost base revenues is employed by the DPU to encourage effective implementation of C&LM programs. These and other C&LM costs are recovered through a Conservation Charge decimal. The KWH savings that are realized as a result of the successful implementation of C&LM programs serve as the basis for determining lost base revenues. Customer Transition Charge On September 29, 1995, the DPU issued a ruling largely approving four rate CAMBRIDGE ELECTRIC LIGHT COMPANY tariffs, including a Customer Transition Charge (CTC), that were filed by the Company on March 15, 1995 following the completion by the Massachusetts Institute of Technology (MIT) of a 19 MW natural gas-fired cogeneration facility that will meet approximately 94% of MIT's power, heating and cooling requirements. The CTC will protect remaining customers from paying certain costs, often referred to as stranded investment costs, that were incurred in the event that the Company's largest customers discontinue full service, yet still remain connected for back-up and other services. These costs include long-term power contracts entered into to meet projected energy requirements, investments in substations, underground and overhead lines and current and future decommissioning costs associated with nuclear plants. This ruling is believed to be the first retail stranded cost charge approved nationally and follows the DPU restructuring order (discussed below) which endorsed, in principle, the recovery of stranded investment costs. MIT appealed the CTC ruling to the FERC and the Massachusetts Supreme Judicial Court (SJC). On February 29, 1996, the FERC denied MIT's appeal seeking relief from paying the CTC. The FERC ruled that the CTC does not discriminate against MIT as a qualifying facility and that stranded costs are to be resolved at the state level. The appeal before the SJC is still pending but the FERC's action will be a factor that the SJC will consider. Through the CTC, the Company will initially recover 75% of net stranded investment costs as calculated in its proposal. The Company's other rates include a Supplemental Service Rate, a Standby Service Rate and a Maintenance Service Rate each of which were approved with only minor changes. The Company is encouraged by the DPU's position on recovery of stranded investment costs and expects to address recovery of the remaining 25% in its restructuring filing. (d) Electric Industry Restructuring On August 16, 1995, the DPU issued an order calling for the restructuring of the electric utility industry in Massachusetts. The stated purpose of the restructuring effort is to allow customers more flexibility in choosing their electric service provider and to develop an efficient industry structure and regulatory framework that minimizes long-term costs to consumers while maintaining the safety and reliability of electric services with a minimum impact on the environment. The electric utility industry will ultimately be functionally separated into three segments to help meet this objective: generation, transmission and distribution. In February 1996, certain utilities submitted required proposals detailing how they plan to move into a competitive market structure. Since that time, the DPU has given notice of a generic proceeding that will focus on many of the policy issues raised in the DPU's original order. Each of the state's electric utilities, together with other interested parties, will participate in this proceeding. The purpose of this generic proceeding is to establish a set of rules governing the restructuring of the electric industry in Massachusetts. These generic rules would set the basis for the DPU's review of each of the utility-specific restructuring proposals. The proposal to be submitted jointly by the Company and Commonwealth Electric (the Companies) is due in September 1996. Management is unable to predict the ultimate outcome of these proceedings. CAMBRIDGE ELECTRIC LIGHT COMPANY On February 15, 1996, in response to the DPU's initial restructuring order, the Companies announced one element of the proposal entitled "Competitive Challenge" in which the Companies would voluntarily put their power capacity entitlements (1,140 MW) to a market test in an effort to develop a competitive market whereby customers would have the flexibility of choosing their electric supplier. The proposal calls for the auctioning in a competitive market of entitlements in all twenty-one contracts, including contracts held by the Companies involving the System's generating subsidiary Canal Electric. The proposal provides for total recovery of the difference between the current market value of the Companies' power contracts and their original unavoidable costs. This difference, considered to be a stranded cost, would be recovered through a non-bypassable access charge paid over an appropriate time period by all customers in the Companies' service areas. The auction approach has received initial positive reviews from the Commonwealth of Massachusetts Division of Energy Resources and the Office of the Attorney General. (e) Potential Impact of Regulatory Restructuring Based on the current regulatory framework, the Company accounts for the economic effects of regulation in accordance with the provisions of Statement of Financial Accounting Standards (SFAS) No. 71, "Accounting for the Effects of Certain Types of Regulation." The Company has established various regulatory assets in cases where the DPU and/or the FERC have permitted or are expected to permit recovery of specific costs over time. The regulatory assets amounted to $7.8 million (5.7% of total assets) as of December 31, 1995. Similarly, the regulatory liabilities established by the Company are required to be refunded to customers over time. In March 1995, the Financial Accounting Standards Board issued SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of." SFAS No. 121 imposes stricter criteria for regulatory assets by requiring that such assets be probable of future recovery at each balance sheet date. Management does not expect that the effects of SFAS No. 121, which the Company adopted on January 1, 1996, will have a material impact on its financial position or results of operations. However, this conclusion may change in the future as changes are made in the current regulatory framework pursuant to the aforementioned electric utility restructuring order issued by the DPU. Competition The Company continues to develop and implement strategies that deal with the increasingly competitive environment facing the electric business. The inherently high cost of providing energy services in the Northeast has placed the region at a competitive disadvantage as more customers begin to explore alternative energy supply options. Many state and federal government agencies are considering implementing programs under which utility and non-utility generators can sell electricity to customers of other utilities without regard to previously closed franchise service areas. In 1994, the DPU began an inquiry into incentive ratemaking and in February 1995 opened an investigation into electric industry restructuring that led to the aforementioned restructuring order. CAMBRIDGE ELECTRIC LIGHT COMPANY In March 1994, the Company was successful in negotiating a seven-year service agreement with Harvard University, whose sales in 1995 and 1994 accounted for approximately 9.4% and 8.5%, respectively, of the Company's total unit sales for those years. As part of its commitment to meet the demands of a new, competitive electric market, the Company began marketing products specially designed for the residential and commercial customer. Products offered to residential customers through the Company include carbon monoxide detectors and a home safety kit containing tests for: lead in paint and water; radiation leaks from microwave ovens; drinking water safety; carbon monoxide; and radon gas. Products offered to smaller commercial customers include: an energy consumption monitor that will monitor two devices simultaneously, such as refrigeration and air-conditioning equipment and at the same time provide information about energy consumption and cost; a voltage scanner for sensitive equipment; electric power surge protectors; and power-plug loggers that monitor the KWH usage on a particular piece of electrical equipment. For larger commercial or industrial customers, enhanced services focus on information systems, utilizing real-time monitoring software so customers are educated about their usage patterns, electrotechnologies in manufacturing processes so customers can increase profits and competitive advantages in the marketplace, engineering services, energy audit services, maintenance management programs, and demand-side management programs. In addition, the Company is actively involved with the Chamber of Commerce in each operating district as well as local and state economic development offices. Information on foreign trade zones, tax incentive programs and financial and lending institutions is provided to businesses to attract and encourage relocation or expansion in the Company's region. Environmental Matters The Company is subject to laws and regulations administered by federal, state and local authorities relating to the quality of the environment. These laws and regulations affect, among other things, the siting and operation of generating facilities, and will continue to impact future operations, capital costs and construction schedules. Air emission regulations require the use of more costly lower-sulphur content fuels (0.5% maximum in the case of the Company's facilities, which are located in a populated urban area) in electric generating facilities. The amendments to the federal Clean Air Act enacted in 1990 will impose restrictions on air emissions, and have a particular impact on the cost of electric generating operations. Regulations enacted by the state of Massachusetts required a reduction in sulphur dioxide emission rates effective December 31, 1994. These regulations may also result in an increase in the cost of power purchased from others. The Company recovers its cost of fuel and purchased power through its FC or base rates. Construction and Financing Information concerning the Company's construction and financing programs is contained in Note 3(a) of the Notes to Financial Statements filed under Item 8 of this report. CAMBRIDGE ELECTRIC LIGHT COMPANY Employees The Company has 155 regular employees, 115 employees (74%) are represented by the Utility Workers' Union of America, A.F.L.-C.I.O. The existing collective bargaining agreement expires September 1, 1998. Employee relations have generally been satisfactory. Item 2. Properties The Company owns and operates two steam generating plants and two gas turbine units located in Cambridge with a total capability of 112.5 MW together with an integrated system of distribution lines and substations. At December 31, 1995, the Company's electric transmission and distribution system consisted of 93 pole miles of overhead lines, 691 cable miles of underground line, 217 substations and 45,059 active customer meters. Item 3. Legal Proceedings The Company is an intervenor in an appeal at the Massachusetts Supreme Judicial Court (SJC) filed by MIT of a decision by the DPU approving a customer transition charge (CTC) that allows the Company to recover certain stranded investment costs. MIT filed its appeal at the SJC on October 19, 1995, and requests that the SJC set aside the DPU's decision approving the Company's CTC. MIT alleges that the CTC is contrary to the requirements of the Public Utility Regulatory Policies Act of 1978, that the DPU's establishment of the CTC constitutes retroactive ratemaking and is in excess of the DPU's statutory authority, and that the level of stranded investment costs to be recovered through the CTC is unsupported by the record. The parties to this proceeding are MIT, the DPU and the Company. The Company intends to present legal and policy arguments in support of the DPU's September 29, 1995 decision. The position taken by the Company will be consistent with its position in MIT's appeal at the FERC. Management is encouraged by the favorable decision rendered by the FERC. For additional information refer to "Cost Recovery" section in Item 1 of this report. CAMBRIDGE ELECTRIC LIGHT COMPANY PART II. Item 5. Market for the Registrant's Common Stock and Related Stockholder Matters (a) Principal Market Not applicable. The Company is a wholly-owned subsidiary of Commonwealth Energy System. (b) Number of Stockholders at December 31, 1995 One (c) Frequency and Amount of Dividends Declared in 1995 and 1994 1995 1994 Per Share Per Share Declaration Date Amount Declaration Date Amount January 25, 1995 $ 2.90 January 21, 1994 $ 2.59 April 28, 1995 1.15 April 25, 1994 3.10 July 24, 1995 3.00 July 18, 1994 2.00 November 14, 1995 7.50 October 24, 1994 10.00 $14.55 $17.69 Reference is made to Note 7 of the Notes to Financial Statements filed under Item 8 of this report for the restriction against the payment of cash dividends. (d) Future dividends may vary depending on the Company's earnings and capital requirements as well as financial and other conditions existing at that time. CAMBRIDGE ELECTRIC LIGHT COMPANY Item 7. Management's Discussion and Analysis of Results of Operations The following is a discussion of certain significant factors which have affected operating revenues, expenses and net income during the periods included in the accompanying statements of income and is presented to facilitate an understanding of the results of operations. This discussion should be read in conjunction with the Notes to Financial Statements filed under Item 8 of this report. A summary of the period to period changes in the principal items included in the accompanying statements of income for the years ended December 31, 1995 and 1994 and unit sales for these periods is shown below: Years Ended Years Ended December 31, December 31, 1995 and 1994 1994 and 1993 Increase (Decrease) (Dollars in Thousands) Electric Operating Revenues $(4 906) (3.8)% $ 2 187 1.7% Operating Expenses: Fuel used in electric production (125) (4.1) 644 27.1 Electricity purchased for resale (3 223) (4.4) (1 464) (2.0) Transmission (345) (4.8) (513) (6.6) Other operation and maintenance (282) (1.2) (1 899) (7.2) Depreciation 97 2.4 235 6.2 Taxes - Federal and state income (537) (16.5) 1 810 124.7 Local property and other 114 3.0 195 5.5 (4 301) (3.6) (992) (0.8) Operating Income (605) (6.0) 3 179 46.2 Other Income 4 1.6 3 1.2 Income Before Interest Charges (601) (5.8) 3 182 44.6 Interest Charges 203 5.0 41 1.0 Net Income $ (804) (12.9) $ 3 141 101.3 Unit Sales (MWH) Retail 9 320 0.7 (14 748) (1.1) Sales for resale (160 059) (52.7) 2 831 0.9 Total unit sales (150 739) (9.3) (11 917) (0.7) CAMBRIDGE ELECTRIC LIGHT COMPANY Unit Sales The following is a summary of unit sales and customers for the periods indicated: Years Ended December 31, 1995 1994 1993 % % Change Change Unit Sales (MWH): Residential 157 355 0.9 155 986 0.2 155 638 Commercial 1 089 187 1.3 1 074 726 1.5 1 091 365 Industrial 78 063 (7.6) 84 471 2.1 82 706 Municipal and other 8 014 (1.3) 8 116 (2.7) 8 338 Total retail 1 332 619 0.7 1 323 299 (1.1) 1 338 047 Wholesale 143 565 (52.7) 303 624 0.9 300 793 Total 1 476 184 (9.3) 1 626 923 (0.7) 1 638 840 Customers: Residential 37 686 (0.2) 37 758 - 37 752 Commercial 6 458 1.0 6 393 0.9 6 339 Industrial 57 (1.7) 58 (1.7) 59 Municipal and other 302 1.7 297 2.1 291 Total 44 503 - 44 506 0.1 44 441 For 1995, the Company's total unit sales decreased 9.3% and reflects a significant decrease in wholesale sales to NEPOOL due to changes in the Company's capacity needs. Retail unit sales increased slightly and reflect moderate increases in the commercial and residential sectors. In 1994, despite a slight increase in retail customers, primarily commercial, retail unit sales decreased 1.1% due primarily to a decline in sales to a large municipal customer. This decrease also reflects a lower demand for power from residential, commercial and municipal customers during the fourth quarter of 1994 due to milder weather conditions compared to both normal and the fourth quarter of 1993. Operating Revenues Operating revenues for 1995 declined $4.9 million (3.8%) due primarily to decreases in wholesale unit sales, electricity purchased for resale ($3.2 million), C&LM charges ($764,000), transmission charges ($345,000), and fuel costs ($125,000) offset, in part, by a small increase in retail unit sales. Also impacting the change in operating revenues was the implementation of a $1.5 million rate refund pursuant to the May 1995 settlement agreement discussed in Item 1. The recovery of lost base revenues through the operation of a CC decimal is allowed by the DPU to encourage effective implementation of C&LM programs. To the extent that current costs associated with C&LM programs increase or decrease from period to period based on customer participation, a corresponding change will occur in revenue. CAMBRIDGE ELECTRIC LIGHT COMPANY Operating revenues increased $2.2 million or 1.7% in 1994 due primarily to new base rates for the Company which became effective June 1, 1993 offset, in part, by a lower level C&LM program costs ($1.7 million), a decline in purchased power of $1.5 million and the lower level of total unit sales. As a result of a DPU mandated recovery mechanism implemented in 1993 for capacity-related costs associated with certain long-term purchased power contracts, the Company has experienced a revenue excess or shortfall when unit sales and/or the costs recoverable in base rates vary from test-period levels. This issue, which has had a significant impact on net income, was addressed in a settlement agreement approved by the DPU in May 1995 (refer to the "Cost Recovery" section in Item 1 of this report for additional details). During 1995 and 1994, the Company overrecovered approximately $900,000 and $3.2 million, respectively, resulting in an increase to net income of approximately $545,000 and $2 million, respectively. The following is an analysis of revenue components for the years 1995, 1994 and 1993: Years Ended December 31, 1995 1994 1993 (Dollars in Thousands) % % Change Change Electric revenues: Costs recovered in Fuel or Conservation Charge $ 47 907 (8.9) $ 52 610 (13.5) $ 60 808 Certain power costs recovered in base rates 31 727 0.8 31 481 19.7 26 294 Other revenue recoveries (*) 43 720 (1.0) 44 169 13.3 38 971 Total revenues $123 354 (3.8) $128 260 1.7 $126 073 (*) Includes sales for resale and other base rate revenues. Electricity Purchased For Resale, Transmission and Fuel To satisfy demand requirements and provide required reserve capacity, the Company purchases power on a long and short-term basis through entitlements pursuant to power contracts with other New England and Canadian utilities, Qualifying Facilities and other non-utility generators through a competitive bidding process that is regulated by the DPU. The Company supplements these sources with its own generating capacity. During 1995, purchased power, transmission and fuel costs decreased $3.7 million or 4.5% due primarily to a $3.2 million reduction in purchased power costs which reflects the unavailability of Canal Electric Company's (Canal) Unit 1 due to a combination of scheduled maintenance and other repairs which kept the unit out of service from January until August 1995. In addition, a nuclear unit remained out of service for most of 1995 while undergoing extensive generator repairs. Purchased power, transmission and fuel costs decreased $1.3 million (1.6%) in 1994 due primarily to decreased sales to a large municipal customer. CAMBRIDGE ELECTRIC LIGHT COMPANY Other Operation and Maintenance During 1995, other operation decreased $887,000 (4.1%) due primarily to a decline in liability insurance ($856,000) due to adjustments to insurance accruals that reflect better than anticipated experience, lower C&LM costs ($764,000) and a decline in the provision for bad debts reflecting improved collection experience ($234,000). This was offset, in part, by higher costs for labor ($669,000) and postretirement benefits ($366,000). Maintenance costs increased $605,000 due primarily to repairs to the Company's Kendall and Blackstone generating units. Other operation expense decreased $1.7 million in 1994 due primarily to the aforementioned lower level of C&LM program costs, lower payroll costs ($508,000) and affiliated services company charges ($228,000) that reflect the impact of a second quarter 1993 work force reduction. These decreases were partially offset by higher insurance and benefits costs ($405,000) and an increase in the provision for bad debts ($304,000). Maintenance costs decreased $197,000 in 1994 due mainly to a lower level of labor-related costs reflecting the work force reduction. Depreciation and Taxes Depreciation expense increased 2.4% and 6.2% in 1995 and 1994, respectively, due to higher levels of depreciable property, plant and equipment. Federal and state income taxes decreased during 1995 by approximately 17% due to a lower level of pretax income. A higher level of pretax income contributed to the 1994 increase of $1.8 million. Local property and other taxes increased in 1995 due to higher rates and assessments along with a slight increase in payroll-related taxes ($64,000). Lower property assessments were an offsetting factor to the 1994 increase of 5.5%. Other Income and Interest Charges There were no significant changes to other income during 1995 and 1994. Interest charges during 1995 increased 5% due to a higher level of short-term borrowings and higher short-term interest rates (6.1% in 1995 versus 4.3% in 1994) offset, somewhat, by an increase in the debt component of allowance for funds used during construction (AFUDC) ($82,000). Despite a lower average level of short-term borrowings, total interest charges increased slightly in 1994 due to higher short-term rates offset, in part, by an increase in the debt component of AFUDC reflecting an increase in construction-work-in-progress during 1994. Item 8. Financial Statements and Supplementary Data The Company's financial statements required by this item are filed herewith on pages 17 through 36 of this report. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None. CAMBRIDGE ELECTRIC LIGHT COMPANY Item 8. Financial Statements and Supplementary Data REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Board of Directors of Cambridge Electric Light Company: We have audited the accompanying balance sheets of CAMBRIDGE ELECTRIC LIGHT COMPANY (a Massachusetts corporation and wholly-owned subsidiary of Commonwealth Energy System) as of December 31, 1995 and 1994, and the related statements of income, retained earnings and cash flows for each of the three years in the period ended December 31, 1995. These financial statements and schedules referred to below are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements and schedules based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cambridge Electric Light Company as of December 31, 1995 and 1994, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 1995, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The schedules listed in the index to financial statements and schedules are presented for purposes of complying with the Securities and Exchange Commission's rules and are not part of the basic financial statements. These schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, fairly state, in all material respects, the financial data required to be set forth therein in relation to the basic financial statements taken as a whole. ARTHUR ANDERSEN LLP Arthur Andersen LLP Boston, Massachusetts February 16, 1996. CAMBRIDGE ELECTRIC LIGHT COMPANY INDEX TO FINANCIAL STATEMENTS AND SCHEDULES PART II. FINANCIAL STATEMENTS Balance Sheets at December 31, 1995 and 1994 Statements of Income for the Years Ended December 31, 1995, 1994 and 1993 Statements of Retained Earnings for the Years Ended December 31, 1995, 1994 and 1993 Statements of Cash Flows for the Years Ended December 31, 1995, 1994 and 1993 Notes to Financial Statements PART IV. SCHEDULES I Investments in, Equity in Earnings of, and Dividends Received From Related Parties for the Years Ended December 31, 1995, 1994 and 1993 II Valuation and Qualifying Accounts for the Years Ended December 31, 1995, 1994 and 1993 SCHEDULES OMITTED All other schedules are not submitted because they are not applicable or not required or because the required information is included in the financial statements or notes thereto. Financial statements of 50% or less owned companies accounted for by the equity method have been omitted because they do not, considered individually, constitute a significant subsidiary. CAMBRIDGE ELECTRIC LIGHT COMPANY BALANCE SHEETS DECEMBER 31, 1995 AND 1994 ASSETS 1995 1994 (Dollars in Thousands) PROPERTY, PLANT AND EQUIPMENT, at original cost $156 925 $148 855 Less - Accumulated depreciation 58 839 55 618 98 086 93 237 Add - Construction work in progress 1 225 3 541 99 311 96 778 INVESTMENTS Equity in nuclear electric power companies 9 224 9 164 Other 5 5 9 229 9 169 CURRENT ASSETS Cash 239 376 Accounts receivable - Affiliated companies 2 140 917 Customers, less reserves of $490,000 in 1995 and $471,000 in 1994 10 534 9 835 Unbilled revenues 1 769 3 088 Inventories, at average cost - Materials and supplies 511 577 Electric production fuel oil 796 804 Prepaid property taxes 1 690 1 702 Other 872 730 18 551 18 029 DEFERRED CHARGES Yankee Atomic purchased power contract 4 504 8 163 Other 5 447 5 570 9 951 13 733 $137 042 $137 709 The accompanying notes are an integral part of these financial statements. CAMBRIDGE ELECTRIC LIGHT COMPANY BALANCE SHEETS DECEMBER 31, 1995 AND 1994 CAPITALIZATION AND LIABILITIES 1995 1994 (Dollars in Thousands) CAPITALIZATION Common Equity - Common stock, $25 par value - Authorized and outstanding - 346,600 shares in 1995 and 1994, wholly-owned by Commonwealth Energy System (Parent) $ 8 665 $ 8 665 Amounts paid in excess of par value 27 953 27 953 Retained earnings 7 561 7 166 44 179 43 784 Long-term debt, including premiums, less current sinking fund requirements and maturing debt 21 865 42 027 66 044 85 811 CURRENT LIABILITIES Interim Financing - Notes payable to banks 2 675 2 175 Advances from affiliates 2 425 550 Maturing long-term debt 20 000 - 25 100 2 725 Other Current Liabilities - Current sinking fund requirements 160 160 Accounts payable - Affiliated companies 3 787 4 212 Other 8 870 8 359 Accrued taxes - Local property and other 1 690 1 711 Income 731 667 Accrued interest 973 994 Other 1 272 1 878 17 483 17 981 42 583 20 706 DEFERRED CREDITS Accumulated deferred income taxes 13 882 12 639 Unamortized investment tax credits 1 941 2 035 Yankee Atomic purchased power contract 4 504 8 163 Other 8 088 8 355 28 415 31 192 COMMITMENTS AND CONTINGENCIES $137 042 $137 709 The accompanying notes are an integral part of these financial statements. CAMBRIDGE ELECTRIC LIGHT COMPANY STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993 1995 1994 1993 (Dollars in Thousands) ELECTRIC OPERATING REVENUES $123 354 $128 260 $126 073 OPERATING EXPENSES Fuel used in electric production 2 895 3 020 2 376 Electricity purchased for resale 69 415 72 638 74 102 Transmission 6 861 7 206 7 719 Other operation 20 617 21 504 23 206 Maintenance 3 404 2 799 2 996 Depreciation 4 127 4 030 3 795 Taxes - Income 2 725 3 262 1 452 Local property 3 017 2 968 2 683 Payroll and other 835 770 860 113 896 118 197 119 189 OPERATING INCOME 9 458 10 063 6 884 OTHER INCOME 258 254 251 INCOME BEFORE INTEREST CHARGES 9 716 10 317 7 135 INTEREST CHARGES Long-term debt 3 776 3 788 3 797 Other interest charges 638 341 246 Allowance for borrowed funds used during construction (136) (54) (9) 4 278 4 075 4 034 NET INCOME $ 5 438 $ 6 242 $ 3 101 The accompanying notes are an integral part of these financial statements. CAMBRIDGE ELECTRIC LIGHT COMPANY STATEMENTS OF RETAINED EARNINGS FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993 1995 1994 1993 (Dollars in Thousands) Balance at beginning of year $ 7 166 $ 7 056 $ 6 156 Add (Deduct): Net income 5 438 6 242 3 101 Cash dividends on common stock (5 043) (6 132) (2 201) Balance at end of year $ 7 561 $ 7 166 $ 7 056 The accompanying notes are an integral part of these financial statements. CAMBRIDGE ELECTRIC LIGHT COMPANY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993 1995 1994 1993 (Dollars in Thousands) OPERATING ACTIVITIES Net income $ 5 438 $ 6 242 $ 3 101 Effects of noncash items - Depreciation and amortization 4 258 4 323 3 989 Deferred income taxes 1 067 917 1 081 Investment tax credits (94) (95) (95) Earnings from corporate joint ventures (1 111) (1 189) (1 069) Dividends from corporate joint ventures 1 051 1 084 1 099 Change in working capital, exclusive of cash and interim financing - Accounts receivable and unbilled revenues (603) 1 209 (3 013) Prepaid taxes 55 991 700 Accounts payable and other (609) 1 683 2 362 Deferred postretirement benefit and pension costs (503) (1 019) (1 284) All other operating items 109 (1 967) (412) Net cash provided by operating activities 9 058 12 179 6 459 INVESTING ACTIVITIES Additions to property, plant and equipment (exclusive of AFUDC) (6 229) (6 499) (4 270) Allowance for borrowed funds used during construction (136) (54) (9) Net cash used for investing activities (6 365) (6 553) (4 279) FINANCING ACTIVITIES Payment of dividends (5 043) (6 132) (2 201) Proceeds from short-term borrowings, net 500 175 500 Proceeds from (payment of) affiliate borrowings 1 875 (755) 1 305 Retirement of long-term debt through sinking funds (162) (162) (162) Net cash used for financing activities (2 830) (6 874) (558) Change in cash (137) (1 248) 1 622 Cash at beginning of period 376 1 624 2 Cash at end of period $ 239 $ 376 $ 1 624 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Interest paid (net of capitalized amounts) $ 3 934 $ 3 743 $ 3 863 Income taxes paid (refunded) $ 2 061 $ 2 102 $ (44) The accompanying notes are an integral part of these financial statements. CAMBRIDGE ELECTRIC LIGHT COMPANY NOTES TO FINANCIAL STATEMENTS (1) General Information Cambridge Electric Light Company (the Company) is a wholly-owned subsidiary of Commonwealth Energy System (the System). The System is the parent company and, together with its subsidiaries, is collectively referred to as "the system." The System is an exempt public utility holding company under the provisions of the Public Utility Holding Company Act of 1935 with investments in four operating public utility companies located in central, eastern and southeastern Massachusetts and several non-regulated companies. The Company's operations are involved in the production and sale of elec- tricity to approximately 44,500 customers in the city of Cambridge, Massachusetts. The service territory encompasses a seven square-mile area with a population of approximately 96,000. In addition, the Company sells power for resale to the New England Power Pool (NEPOOL) and the Town of Belmont, Massachusetts (Belmont), and sells steam from its electric generating stations at wholesale to an affiliated company for distribution to customers for space heating and other purposes. The Company has 155 regular employees, 115 (74%) of whom are represented by a single collective bargaining unit. Employee relations have generally been satisfactory. (2) Significant Accounting Policies (a) Principles of Accounting The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain prior year amounts are reclassified from time to time to conform with the presentation used in the current year's financial statements. (b) Regulatory Assets and Liabilities The Company is regulated as to rates, accounting and other matters by various authorities including the Federal Energy Regulatory Commission (FERC) and the Massachusetts Department of Public Utilities (DPU). Based on the current regulatory framework, the Company accounts for the economic effects of regulation in accordance with the provisions of Statement of Financial Accounting Standards (SFAS) No. 71, "Accounting for the Effects of Certain Types of Regulation." The Company has established various regulatory assets in cases where the DPU and/or the FERC have permitted or are expected to permit recovery of specific costs over time. Similarly, the regulatory liabilities established by the Company are required to be refunded to customers over time. In March 1995, the Financial Accounting Standards Board issued SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of." SFAS No. 121 imposes stricter criteria for regulatory assets by requiring that such assets be probable of CAMBRIDGE ELECTRIC LIGHT COMPANY future recovery at each balance sheet date. Management does not expect that the effects of SFAS No. 121, which the Company adopted on January 1, 1996, will have a material impact on its financial position or results of operations. However, this conclusion may change in the future as changes are made in the current regulatory framework pursuant to an electric utility restructuring order issued by the DPU in August 1995. The principal regulatory assets included in deferred charges at December 31, 1995 and 1994 were as follows: 1995 1994 (Dollars in Thousands) Yankee Atomic unrecovered plant and decommissioning costs $ 4 504 $ 8 163 Postretirement benefit costs including pensions 2 807 2 304 Other 498 763 $ 7 809 $11 230 As of December 31, 1995, $5.7 million of the Company's regulatory assets and all of its regulatory liabilities are reflected in rates charged to customers over a weighted average period of approximately 5 years. The Company intends to request and expects to receive approval for recovery of its remaining regulatory assets in future rate proceedings. The regulatory liabilities, reflected in the accompanying balance sheets and related to deferred income taxes, were $3.2 million and $3.7 million at December 31, 1995 and 1994, respectively. (c) Transactions with Affiliates Transactions between the Company and other system companies include purchases and sales of electricity, including purchases from Canal Electric Company (Canal), an affiliate wholesale electric generating company. Other Canal transactions include costs relating to the abandonment of Seabrook 2 and the recovery of a portion of Seabrook 1 pre-commercial operation costs. In addition, payments for management, accounting, data processing and other services are made to an affiliate, COM/Energy Services Company. Transactions with other system companies are subject to review by the DPU. The Company's operating expenses include the following major intercompany transactions for the periods indicated: Purchased Power Purchased Power and Transmission Period Ended Purchased Power and Transmission From Canal December 31, Canal Units Seabrook 1 as Agent (Dollars in Thousands) 1995 $10 148 $ 6 973 $ 1 465 1994 11 650 8 622 9 780 1993 12 637 9 141 10 896 The costs for the Canal and Seabrook 1 units are included in the long-term obligation table listed in Note 2(b). In addition, the Company purchased CAMBRIDGE ELECTRIC LIGHT COMPANY natural gas from an affiliate, Commonwealth Gas Company, totaling $1,969,000, $2,158,000 and $1,485,000 in 1995, 1994 and 1993, respectively. (d) Operating Revenues Customers are billed for their use of electricity on a cycle basis throughout the month. To reflect revenues in the proper period, the estimated amount of unbilled sales revenue is recorded each month. The Company is generally permitted to bill customers currently for costs associated with purchased power and transmission, fuel used in electric production and conservation and load management (C&LM) costs through adjust- ment clauses. Amounts recoverable under the adjustment clauses are subject to review and adjustment by the DPU. The amount of such costs incurred by the Company but not yet reflected in customers' bills is recorded as unbilled revenues. However, as of December 31, 1995, the Company had overcollected $348,000 which is reflected as a liability in the balance sheet. This overcollected fuel-related amount is returned to customers in subsequent months. There was no overcollected amount at December 31, 1994. (e) Depreciation Depreciation is provided using the straight-line method at rates intended to amortize the original cost and the estimated cost of removal less salvage of properties over their estimated economic lives. The average composite depreciation rate was 2.72% in 1995, 2.76% in 1994 and 2.66% in 1993. (f) Maintenance Expenditures for repairs of property and replacement and renewal of items determined to be less than units of property are charged to maintenance expense. Additions, replacements and renewals of property considered to be units of property are charged to the appropriate plant accounts. Upon retirement, accumulated depreciation is charged with the original cost of property units and the cost of removal less salvage. (g) Allowance for Funds Used During Construction Under applicable rate-making practices, the Company is permitted to include an allowance for funds used during construction (AFUDC) as an element of its depreciable property costs. This allowance is based on the amount of construction work in progress that is not included in the rate base on which the Company earns a return. An amount equal to the AFUDC capitalized in the current period is reflected in the accompanying statements of income. While AFUDC does not provide funds currently, these amounts are recover- able in revenues over the service life of the constructed property. The amount of AFUDC recorded was at a weighted average rate of 7.75% in 1995, 6.5% in 1994 and 3.5% in 1993. CAMBRIDGE ELECTRIC LIGHT COMPANY (3) Commitments and Contingencies (a) Financing and Construction Programs The Company is engaged in a continuous construction program presently estimated at $27.2 million for the five-year period 1996 through 2000. Of that amount, $6.3 million is estimated for 1996. The program is subject to periodic review and revision because of factors such as changes in business conditions, rates of customer growth, effects of inflation, maintenance of reliable and safe service, equipment delivery schedules, licensing delays, availability and cost of capital and environmental factors. The Company expects to finance these expenditures on an interim basis with internally generated funds and short-term borrowings which are ultimately expected to be repaid with the proceeds from sales of long-term debt and equity securities. (b) Power Contracts The Company has long-term contracts for the purchase of electricity from various sources. Generally, these contracts are for fixed periods and require payment of a demand charge for the capacity entitlement and an energy charge to cover the cost of fuel. Pertinent information with respect to life-of-the- unit contracts for power from operating nuclear units in which the Company has an equity ownership (Yankee Nuclear Units) is as follows: Connecticut Maine Vermont Yankee Yankee Yankee (Dollars in Thousands) Equity Ownership (%) 4.50 4.00 2.50 Plant Entitlement (%) 4.50 3.59 2.25 Plant Capability (MW) 560.0 870.0 496.0 Company Entitlement (MW) 25.2 31.2 11.2 Contract Expiration Date 2007 2008 2012 1993 Actual Cost ($) 10 016 7 050 4 076 1994 Actual Cost ($) 8 902 6 250 3 660 1995 Actual Cost ($) 9 498 7 376 4 003 Decommissioning cost estimate (100%) ($) 385 523 361 212 347 383 Company's decommissioning cost ($) 17 349 12 968 7 816 Market value of assets (100%) ($) 180 388 142 116 141 300 Company's market value of assets ($) 8 117 5 102 3 179 The Company pays its share of decommissioning expense to each of the operators of these nuclear facilities as a cost of electricity purchased for resale. CAMBRIDGE ELECTRIC LIGHT COMPANY The Company also has long-term contracts to purchase capacity from other generating facilities. Information relative to these contracts is as follows: Range of Contract Expiration Entitlement 1995 1994 1993 Dates % MW Cost Cost Cost (Dollars in Thousands) Type of Unit Cogenerating 2011 17.2 24.5 $14 680 $14 808 $ 4 979 Oil 2001-2009 * 86.1 10 148 11 650 12 637 Nuclear 2026 0.7 8.1 6 919 8 622 9 141 Total 118.7 $31 747 $35 080 $26 757 (*) Includes contracts to power from two oil-fired units with capacity entitlements of 4.99% and 9.97%. Costs pursuant to these contracts are included in electricity purchased for resale in the accompanying statements of income and are recoverable in revenue. The estimated aggregate obligations under the life-of-the-unit contracts for capacity from the operating Yankee Nuclear Units and other long-term purchased power obligations, including the Canal and Seabrook 1 units, in effect for the five years subsequent to 1995 are as follows: Long-Term Equity-Owned Purchased Nuclear Units Power Total (Dollars in Thousands) 1996 $21 195 $37 927 $59 122 1997 21 130 40 027 61 157 1998 23 596 41 241 64 837 1999 23 153 41 561 64 714 2000 23 813 42 139 65 952 In addition, the Company incurred costs for purchases from the New England Power Pool of $14,185,000, $6,241,000 and $11,039,000 in 1995, 1994 and 1993, respectively. (c) Price-Anderson Act Under the Price-Anderson Act (the Act), owners of nuclear power plants have the benefit of approximately $8.9 billion of public liability coverage which would compensate the public for valid bodily injury and property loss on a no fault basis in the event of an accident at a commercial nuclear power plant. Under the provisions of the Act, each nuclear reactor with an operating license can be assessed up to $79.3 million per nuclear incident with a maximum assessment of $10 million per incident within one calendar year. Nuclear plant owners have initiated insurance programs designed to help cover liability claims relating to property damage, decontamination, replacement power and business interruption costs for participating utilities arising from a nuclear incident. CAMBRIDGE ELECTRIC LIGHT COMPANY The Company has an equity ownership interest in four nuclear generating facilities. The operators of these units maintain nuclear insurance coverage (on behalf of the owners of the facilities) with Nuclear Electric Insurance Limited (NEIL II and NEIL III) and the combined American Nuclear Insurers/Mutual Atomic Energy Liability Underwriters (ANI). NEIL II provides $1.4 billion of property, boiler, machinery and decontamination insurance coverage, including accidental premature decommissioning insurance in the amount of the shortfall in the Decommissioning Trust Fund, in excess of the underlying $500 million policy. NEIL III provides $850 million of additional insurance coverage. All companies insured with NEIL are subject to retroactive assessments if losses exceed the accumulated funds available. ANI provides $500 million of "all risk" property damage, boiler, machinery and decontamination insurance. An additional $200 million of primary financial protection coverage is provided for off-site bodily injury or property damage caused by a nuclear incident. ANI also provides secondary financial protection liability insurance which currently provides $8.7 billion of retrospective insurance premium benefits in accordance with the provisions of the Act. Additional coverage provided by ANI includes tort liability protection arising out of radiation injury claims by nuclear workers and injury or property damage caused by the transportation or shipment of nuclear materials or waste. Based on its various ownership interests in the four nuclear generating facilities, the Company's retrospective premium could be as high as $1.3 million yearly or a cumulative total of $12.3 million, exclusive of the effect of inflation indexing (at five-year intervals) and a 5% surcharge ($4 million) in the event that total public liability claims from a nuclear incident exceed the funds available to pay such claims. (d) Guarantee Agreement In connection with its investment in Maine Yankee Atomic Power Company, the Company has guaranteed its pro-rata portion of that company's nuclear fuel financing. At December 31, 1995, the Company's portion amounted to $800,000. (e) Yankee Atomic Nuclear Power Plant In 1992, Yankee Atomic Electric Company (Yankee Atomic) permanently discontinued power operation and began the decommissioning of the Yankee Nuclear Power Station (the plant). At December 31, 1995, the Company's 2% investment in Yankee Atomic was $464,000. The Company's estimated decom- missioning costs include its unrecovered share of all costs associated with the shutdown of the plant, recovery of its plant investment, and decom- missioning and closing the plant. The most recent cost estimate to permanently shut down the plant is approximately $225.2 million at December 31, 1995. The Company's share of this liability is $4.5 million and is reflected in the accompanying balance sheets as a liability and corresponding regulatory asset. The market value of the Company's share of assets in the plant's decommissioning fund at December 31, 1995 is approximately $2.1 million. (f) Environmental Matters The Company is subject to laws and regulations administered by federal, state and local authorities relating to the quality of the environment. These CAMBRIDGE ELECTRIC LIGHT COMPANY laws and regulations affect, among other things, the siting and operation of electric generating and transmission facilities and can require the installa- tion of expensive air and water pollution control equipment. These regula- tions have had an impact on the Company's operations in the past and will continue to have an impact on future operations, capital costs and construc- tion schedules of major facilities. (4) Income Taxes For financial reporting purposes, the Company provides federal and state income taxes on a separate-return basis. However, for federal income tax purposes, the Company's taxable income and deductions are included in the consolidated income tax return of the System and it makes tax payments or receives refunds on the basis of its tax attributes in the tax return in accordance with applicable regulations. The following is a summary of the Company's provisions for income taxes for the years ended December 31, 1995, 1994 and 1993: 1995 1994 1993 (Dollars in Thousands) Federal Current $ 1 397 $ 1 976 $ 326 Deferred 991 805 973 Investment tax credits (94) (95) (95) 2 294 2 686 1 204 State Current 355 464 140 Deferred 174 157 195 529 621 335 2 823 3 307 1 539 Amortization of regulatory liability relating to deferred income taxes (98) (45) (87) $ 2 725 $ 3 262 $ 1 452 Deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect in the year in which the differences are expected to reverse. Accumulated deferred income taxes consisted of the following in 1995 and 1994: 1995 1994 (Dollars in Thousands) Liabilities Property-related $16 263 $15 144 All other 2 345 2 168 18 608 17 312 Assets Investment tax credits 1 253 1 313 Pension plan 761 732 Regulatory liability 1 128 1 192 All other 935 1 109 4 077 4 346 Accumulated deferred income taxes, net $14 531 $12 966 CAMBRIDGE ELECTRIC LIGHT COMPANY The net year-end deferred income tax liability above includes a current deferred tax liability of $648,000 and $327,000 in 1995 and 1994, respec- tively, which are included in accrued income taxes in the accompanying balance sheets. The total income tax provision set forth previously represents 33% in 1995, 34% in 1994 and 32% in 1993 of income before such taxes. The following table reconciles the statutory federal income tax rate to these percentages: 1995 1994 1993 (Dollars in Thousands) Federal statutory rate 35% 35% 35% Federal income tax expense at statutory levels $2 857 $3 326 $1 594 Increase (Decrease) from statutory levels: State tax net of federal tax benefit 343 404 218 Tax versus book depreciation 2 39 27 Amortization of excess deferred reserves (98) (14) (87) Amortization of investment tax credits (94) (95) (96) Reversals of capitalized expenses (14) (100) (14) Dividend received deduction (272) (291) (264) Other 1 (7) 74 $2 725 $3 262 $ 1 452 Effective federal income tax rate 33% 34% 32% (5) Employee Benefit Plans (a) Pension The Company has a noncontributory pension plan covering substantially all regular employees who have attained the age of 21 and have completed one year of service. Pension benefits are based on an employee's years of service and compensation. The Company makes monthly contributions to the plan consistent with the funding requirements of the Employee Retirement Income Security Act of 1974. Components of pension expense and related assumptions to develop pension expense were as follows: 1995 1994 1993 (Dollars in Thousands) Service cost $ 484 $ 560 $ 459 Interest cost 1 924 1 732 1 646 Return on plan assets - (gain)/loss (5 388) 392 (3 175) Net amortization and deferral 3 672 (1 901) 1 781 Total pension expense 692 783 711 Transfers to affiliated companies, net 439 404 400 Less: Amounts capitalized and deferred 243 386 232 Net pension expense $ 888 $ 801 $ 879 Discount rate 8.50% 7.25% 8.50% Assumed rate of return 9.00 8.50 8.50 Rate of increase in future compensation 5.00 4.50 5.50 CAMBRIDGE ELECTRIC LIGHT COMPANY Pension expense reflects the use of the projected unit credit method which is also the actuarial cost method used in determining future funding of the plan. The Company, in accordance with current ratemaking, is deferring the difference between pension contribution, which is reflected in base rates, and pension expense, recognized pursuant to SFAS No. 87, "Employers' Accounting for Pensions." The funded status of the Company's pension plan (using a measurement date of December 31) is as follows: 1995 1994 (Dollars in Thousands) Accumulated benefit obligation: Vested $ (19 638) $ (16 519) Nonvested (2 093) (1 871) $ (21 731) $ (18 390) Projected benefit obligation $ (26 053) $ (22 343) Plan assets at fair market value 26 361 21 931 Projected benefit obligation (greater) less than plan assets 308 (412) Unamortized transition obligation 825 962 Unrecognized prior service cost 1 194 1 314 Unrecognized gain (4 019) (3 418) Accrued pension liability $ (1 692) $ (1 554) The following actuarial assumptions were used in determining the plan's year-end funded status: 1995 1994 Discount rate 7.25% 8.50% Rate of increase in future compensation 4.25 5.00 Plan assets consist primarily of fixed-income and equity securities. Fluctuations in the fair market value of plan assets will affect pension expense in future years. (b) Other Postretirement Benefits Historically, the Company provided postretirement health care and life insurance benefits to eligible retired employees. Employees became eligible for these benefits if their age plus years of service for the Company or another subsidiary of the System at retirement equaled 75 or more. However, as of January 1, 1993, the Company eliminated postretirement health care benefits for those non-bargaining employees who were less than 40 years of age or had less than 12 years of service at that date. Under certain circumstances, eligible employees are required to make contributions for postretirement benefits. The Company adopted the provisions of SFAS No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions" as of January 1, 1993 and the cumulative effect of implementation of SFAS No. 106 was approximately $10 million which is being amortized over 20 years. Prior to 1993, the cost of postretirement benefits was recognized as benefits were paid. The Company makes contributions to various voluntary employees' benefi- ciary association (VEBA) trusts that were established pursuant to section CAMBRIDGE ELECTRIC LIGHT COMPANY 501(c)(9) of the Internal Revenue Code (the Code). The Company also makes contributions to a subaccount of its pension plan pursuant to section 401(h) of the Code to satisfy a portion of its postretirement benefit obligation. The Company contributed approximately $1.3 million, $1.4 million and $1.1 million to these trusts during 1995, 1994 and 1993, respectively. The net periodic postretirement benefit cost for the years ended December 31, 1995, 1994 and 1993 include the following components and related assumptions: 1995 1994 1993 (Dollars in Thousands) Service cost $ 164 $ 198 $ 201 Interest cost 817 784 839 Return on plan assets (521) (14) (74) Amortization of transition obligation over 20 years 498 497 498 Net amortization and deferral 337 (94) (7) Total postretirement benefit cost 1 295 1 371 1 457 Transfer from affiliated companies, net 579 603 586 Less: Amounts capitalized and deferred 458 863 1 268 Net postretirement benefit cost $1 416 $1 111 $ 775 Discount rate 8.50% 7.25% 8.50% Assumed rate of return 9.00 8.50 8.50 Rate of increase in future compensation 5.00 4.50 4.50 The funded status of the Company's postretirement benefit plan using a measurement date of December 31, 1995 and 1994 is as follows: 1995 1994 (Dollars in Thousands) Accumulated postretirement benefit obligation: Retirees $ (6 219) $ (5 990) Fully eligible active plan participants (1 720) (1 358) Other active plan participants (3 463) (3 147) (11 402) (10 495) Plan assets at fair market value 2 973 1 681 Accumulated postretirement benefit obligation greater than plan assets (8 429) (8 814) Unamortized transition obligation 8 458 8 956 Unrecognized gain (29) (142) $ - $ - The following actuarial assumptions were used in determining the plan's estimated accumulated postretirement benefit obligation (APBO) and funded status for 1995 and 1994: 1995 1994 Discount rate 7.25% 8.50% Rate of increase in future compensation 4.25 5.00 Medicare part B premiums 12.20 12.30 Medical care 8.00 8.50 Dental care 5.00 5.00 CAMBRIDGE ELECTRIC LIGHT COMPANY The above rates, with the exception of the dental rate which remains constant, decrease to five percent in the year 2007 and remain at that level thereafter. A one percent change in the medical trend rate would have a $133,000 impact on the Company's annual expense and would change the APBO by approximately $1.4 million. Plan assets consist primarily of fixed-income and equity securities. Fluctuations in the fair market value of plan assets will affect postretire- ment benefit expense in future years. Effective with its June 1, 1993 rate order from the DPU, the Company was allowed to recover its SFAS No. 106 expense in base rates over a four-year phase-in period with carrying costs on the deferred balance. At December 31, 1995 and 1994, the Company's deferral amounted to approximately $2.2 million and $1.8 million, respectively. (c) Savings Plan The Company has an Employees Savings Plan that provides for Company contributions equal to contributions by eligible employees of up to four percent of each employee's compensation rate. Effective January 1, 1993, the rate was increased to five percent for those employees no longer eligible for postretirement health benefits. The Company's contribution was $317,000 in 1995, $325,000 in 1994 and $321,000 in 1993. (6) Interim Financing and Long-Term Debt (a) Notes Payable to Banks The Company and other system companies maintain both committed and uncommitted lines of credit for the short-term financing of their construction programs and other corporate purposes. As of December 31, 1995, system companies had $80 million of committed lines of credit that will expire at varying intervals in 1996. These lines are normally renewed upon expiration and require annual fees of up to .1875% of the individual line. At December 31, 1995, the system's uncommitted lines of credit totaled $70 million. Interest rates on the Company's outstanding borrowings generally are at an adjusted money market rate and averaged 6.1% and 4.3% in 1995 and 1994, respectively. Notes payable to banks totaled $2,675,000 and $2,175,000 at December 31, 1995 and 1994, respectively. (b) Advances from Affiliates Notes payable to the System totaled $2,425,000 and $410,000 at December 31, 1995 and 1994, respectively. These notes are written for a term of up to 11 months and 29 days. Interest is at the prime rate and is adjusted for changes in that rate during the term of the notes. The rate averaged 8.8% and 7.3% in 1995 and 1994, respectively. The Company is a member of the COM/Energy Money Pool (the Pool), an arrangement among the subsidiaries of the System, whereby short-term cash surpluses are used to help meet the short-term borrowing needs of the utility subsidiaries. In general, lenders to the Pool receive a higher rate of return than they otherwise would on such investments, while borrowers pay a lower CAMBRIDGE ELECTRIC LIGHT COMPANY interest rate than those available from banks. Interest rates on the out- standing borrowings are based on the monthly average rate the Company would otherwise have to pay banks, less one-half the difference between that rate and the monthly average U.S. Treasury Bill weekly auction rate. The borrow- ings are for a period of less than one year and are payable upon demand. Rates on these borrowings averaged 5.8% and 4.3% in 1995 and 1994, respective- ly. The Company had no notes payable to the Pool at December 31, 1995. Notes payable to the Pool totaled $140,000 at December 31, 1994. (c) Long-Term Debt Maturities and Retirements Long-term debt outstanding, exclusive of current maturities, current sinking fund requirements and related premiums, is as follows: Original Balance December 31, Issue 1995 1994 (Dollars in Thousands) 7-Year Notes - 9.97%, due 1996 $20 000 $ - $20 000 7-Year Notes - 8.04%, due 1999 10 000 10 000 10 000 15-Year Notes - 8.7%, due 2007 5 000 5 000 5 000 30-Year Notes - Series C, 6 1/4%, due 1997 6 000 4 260 4 320 Series D, 7 3/4%, due 2002 5 000 2 600 2 700 $21 860 $42 020 Under the terms of its Indenture of Trust, the Company is required to make periodic sinking fund payments for retirement of outstanding long-term debt. The payments and balances of maturing debt issues for the five years subsequent to December 31, 1995 are as follows: Sinking Fund Maturing Year Payments Debt Issues Total (Dollars in Thousands) 1996 $160 $20 000 $20 160 1997 100 4 260 4 360 1998 100 - 100 1999 100 10 000 10 100 2000 100 100 200 (d) Disclosures About Fair Value of Financial Instruments The fair value of certain financial instruments included in the accompany- ing balance sheets as of December 31, 1995 and 1994 is as follows: 1995 1994 (Dollars in Thousands) Carrying Fair Carrying Fair Value Value Value Value Long-Term Debt $42 025 $43 656 $42 187 $41 966 CAMBRIDGE ELECTRIC LIGHT COMPANY The carrying amount of cash, notes payable to banks and advances to/from affiliates approximates the fair value because of the short maturity of these financial instruments. The estimated fair value of long-term debt is based on quoted market prices of the same or similar issues or on the current rates offered for debt with the same remaining maturity. The fair values shown above do not purport to represent the amounts at which those obligations would be settled. (7) Dividend Restriction At December 31, 1995, approximately $5,402,000 of retained earnings was restricted against the payment of cash dividends by terms of term loans and note agreements securing long-term debt. As of the same date, retained earnings also included approximately $4,227,000 representing the Company's equity in undistributed earnings of the nuclear companies. (8) Lease Obligations The Company leases equipment and office space under arrangements that are classified as operating leases. These lease agreements are for terms of one year or longer. Leases currently in effect contain no provisions that prohibit the Company from entering into future lease agreements or obliga- tions. Future minimum lease payments, by period and in the aggregate, of noncanc- elable operating leases consisted of the following at December 31, 1995: Operating Leases (Dollars in Thousands) 1996 $ 1 268 1997 1 019 1998 975 1999 975 2000 976 Beyond 2000 2 763 Total future minimum lease payments $ 7 976 Total rent expense for all operating leases, except those with terms of a month or less, amounted to $1,374,000 in 1995, $1,484,000 in 1994 and $1,577,000 in 1993. There were no contingent rentals and no sublease rentals for the years 1995, 1994 and 1993. CAMBRIDGE ELECTRIC LIGHT COMPANY PART V. Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K (a) 1. Index to Financial Statements Financial statements and notes thereto of the Company together with the Report of Independent Public Accountants, are filed under Item 8 of this report and listed on the Index to Financial Statements and Schedules (page 18). (a) 2. Index to Financial Statement Schedules Filed herewith at page(s) indicated - Schedule I - Investments in, Equity in Earnings of, and Dividends Received From Related Parties - Years Ended December 31, 1995, 1994 and 1993 (pages 46-48). Schedule II - Valuation and Qualifying Accounts - Years Ended December 31, 1995, 1994 and 1993 (page 49). (a) 3. Exhibits: Notes to Exhibits - a. Unless otherwise designated, the exhibits listed below are incorporated by reference to the appropriate exhibit numbers and the Securities and Exchange Commission file numbers indicated in parentheses. b. The following is a glossary of Commonwealth Energy System and subsidiary companies' acronyms that are used throughout the following Exhibit Index: CES.....................Commonwealth Energy System CE......................Commonwealth Electric Company CEL.....................Cambridge Electric Light Company CEC.....................Canal Electric Company CG......................Commonwealth Gas Company NBGEL...................New Bedford Gas and Edison Light Company CAMBRIDGE ELECTRIC LIGHT COMPANY Exhibit Index Exhibit 3. Articles of incorporation and by-laws. 3.1 Articles of incorporation of CEL (Exhibit 1 to the CEL Form 10-K for 1990, File No.2-7909). 3.2 By-laws of CEL, as amended (Exhibit 2 to the CEL Form 10-K for 1990, File No.2-7909). Exhibit 4. Instruments defining the rights of security holders; including indentures. Indenture of Trust or Supplemental Indenture of Trust. 4.1.1 Original Indenture on Form S-1 (April 1949) (Exhibit 7(a), File No. 2-7909). 4.1.2 Third Supplemental on Form 10-K (1984) (Exhibit 1, File No. 2- 7909). 4.1.3 Fourth Supplemental on Form 10-K (1984) (Exhibit 2, File No. 2- 7909). 4.1.4 Sixth Supplemental on Form 10-Q (June 1989) (Exhibit 1, File No. 2-7909). 4.1.5 Seventh Supplemental on Form 10-Q (June 1992) (Exhibit 1, File No. 2-7909). Exhibit 10. Material Contracts. 10.1 Power Contracts. 10.1.1 Power Contract between CEC and CEL dated December 1, 1965 (Exhibit 13(a)(1) to the CEC Form S-1, File No. 2-30057). 10.1.2 Contract between CEC and NBGEL and CEL, affiliated companies, for the sale for specified amounts of electricity from CEC Unit 2 dated January 12, 1976 (Exhibit 7 to the CES Form 10-K for 1985, File No. 1-7316). 10.1.3 Power Contract, as amended to February 28, 1990, superseding the Power Contract dated September 1, 1986 and amendment dated June 1, 1988, between CEC (seller) and CE and CEL (purchasers) for seller's entire share of the Net Unit Capability of Seabrook 1 and related energy produced and other provisions (Exhibit 1 to the CEC Form 10-Q (March 1990), File No. 2-30057). 10.1.4 Termination Supplement between CEC, CE and CEL RE: Seabrook Unit 2 dated December 8, 1986 (Exhibit 3 to the CEC Form 10-K for 1986, File No. 2-30057). 10.1.5 Agreement for Joint-Ownership, Construction and Operation of the New Hampshire Nuclear Units (Seabrook) between CE, Public Service Company of New Hampshire (PSNH) and others dated May 1, 1973 and filed by CE as Exhibit 13(N) on Form S-1 dated October 1973, File No. 2-49013, and as amended below: CAMBRIDGE ELECTRIC LIGHT COMPANY 10.1.5.1 First through Fifth Amendments to 10.1.5 dated May 24, 1974, June 21, 1974, September 25, 1975, October 25, 1974 and January 31, 1975, respectively (Exhibit 13(m) to CE's Form S-1, (November 7, 1975), File No. 2-54995). 10.1.5.2 Sixth through Eleventh Amendments to 10.1.5 dated April 18, 1979, April 18, 1979, April 25, 1979, June 8, 1979, October 11, 1979 and December 15, 1979, respectively (Refiled as Exhibit 1 to the CEC Form 10-K for 1989, File No. 2-30057). 10.1.5.3 Twelfth through Fourteenth Amendments to 10.1.5 dated May 16, 1980, December 31, 1980 and June 1, 1982, respectively (Refiled as Exhibits 1, 2 and 3 to the CE 1992 Form 10-K), File No. 2-7749). 10.1.5.4 Fifteenth and Sixteenth Amendment to 10.1.5 dated April 27, 1984 and June 15, 1984, respectively (Exhibit 1 to the CEC Form 10-Q (June 1984), File No. 2-30057). 10.1.5.5 Seventeenth Amendment to 10.1.5 dated March 8, 1985 (Exhibit 1 to the CEC Form 10-Q (March 1985), File No. 2-30057). 10.1.5.6 Eighteenth Amendment to 10.1.5 dated March 14, 1986 (Exhibit 1 to the CEC Form 10-Q (March 1986), File No. 2-30057). 10.1.5.7 Nineteenth Amendment to 10.1.5 dated May 1, 1986 (Exhibit 1 to the CEC Form 10-Q (June 1986), File No. 2-30057). 10.1.5.8 Twentieth Amendment to 10.1.5 dated September 19, 1986 (Exhibit 1 to the CEC Form 10-K for 1986, File No. 2-30057). 10.1.5.9 Twenty-First Amendment to 10.1.5 dated November 12, 1987 (Exhibit 1 to the CEC Form 10-K for 1989, File No. 2-30057). 10.1.5.10 Twenty-Second Amendment and Settlement Agreement to 10.1.5 both dated January 13, 1989, (Exhibit 4 to the CEC Form 10-K for 1988, File No. 2-30057). 10.1.6 Resolutions proposed by Merrill Lynch Capital Markets and adopted by the Joint-Owners of the Seabrook Nuclear Project regarding Project financing, dated May 14, 1984 (Exhibit 1 to the CEC Form 10-Q (March 1984), File No. 2-30057). 10.1.7 Interim Agreement to Preserve and Protect the Assets of and Investment in Seabrook by and between CEC, PSNH and other participants, dated April 27, 1984 (Exhibit 2 to the CEC Form 10-Q (June 1984), File No. 2-30057). 10.1.8 Agreement for Seabrook Project Disbursing Agent by and among CEC, PSNH and other participants establishing Yankee Atomic Electric Company as the disbursing agent under the Joint-Ownership Agreement, dated May 23, 1984, (Exhibit 4 to the CEC Form 10-Q (June 1984), File No. 2-30057). CAMBRIDGE ELECTRIC LIGHT COMPANY 10.1.8.1 First Amendment dated March 8, 1985 to 10.1.8 (Exhibit 2 to the CEC Form 10-Q (March 1985), File No. 2-30057). 10.1.8.2 Second through Fifth Amendments dated May 20, 1985, June 18, 1985, January 2, 1986 and November 12, 1987, respectively, to 10.1.8 (Exhibit 4 to the CEC Form 10-K for 1987, File No. 2-30057). 10.1.9 Capacity Acquisition Agreement between CEC, CEL and CE dated September 25, 1980 (Exhibit 1 to the 1991 CEC Form 10-K, File No. 2-30057). 10.1.9.1 Supplement to 10.1.9 consisting of three Capacity Acquisition Commitments each dated May 7, 1987, concerning Phases I and II of the Hydro-Quebec Project and electricity acquired from Connecticut Light and Power Company (Exhibit 1 to the CEC Form 10-Q (September 1987), File No. 2-30057). 10.1.9.2 Supplements to 10.1.9 consisting of two Capacity Acquisition Commitments each dated October 31, 1988, concerning electricity acquired from Western Massachusetts Electric Company and/or Connecticut Light and Power Company for periods ranging from November 1, 1988 to October 31, 1994 (Exhibit 2 to the CEC Form 10-Q (September 1989), File No. 2-30057). 10.1.9.3 Amendment to 10.1.9 as amended and restated June 1, 1993, henceforth referred to as the Capacity Acquisition and Disposition Agreement, whereby CEC, as agent, in addition to acquiring power may also sell bulk electric power which the Company and/or CE owns or otherwise has the right to sell (Exhibit 1 to CE's Form 10-Q (September 1993), File No. 2-30057). 10.1.10 Power Contract between Yankee Atomic Electric Company and CEL, dated June 30, 1959, as amended April 1, 1975 (Exhibit 1 to the CEL Form 10-K, File No. 2-7909). 10.1.10.1 Second, Third and Fourth Amendments to 10.1.10 as amended October 1, 1980, April 1, 1985 and May 6, 1988, respectively (Exhibit 2 to the CEL Form 10-Q (June 1988), File No. 2-7909). 10.1.10.2 Fifth and Sixth Amendments to 10.1.10 as amended June 26, 1989 and July 1, 1989, respectively (Exhibit 1 to the CEL Form 10-Q (September 1989), File No. 2-7909). 10.1.11 Power Contract between Connecticut Yankee Atomic Power Company and CEL dated July 1, 1964 (Exhibit 13-K1 to the CES Form S-1, (April 1967) File No. 2-25597). 10.1.11.1 Additional Power Contract to 10.1.11 providing for extension on the contract term dated April 30, 1984 (Exhibit 5 to the CEL Form 10-Q (June 1984), File No. 2-7909). CAMBRIDGE ELECTRIC LIGHT COMPANY 10.1.11.2 Second Supplementary Power Contract to 10.1.11 providing for decommissioning financing dated April 30, 1984 (Exhibit 6 to the CEL Form 10-Q (June 1984), File No. 2-7909). 10.1.12 Power Contract between CEL and Vermont Yankee Nuclear Power Corporation dated February 1, 1968 (Exhibit 3 to the CEL 1984 Form 10-K, File No. 2-7909). 10.1.12.1 First Amendment (Section 7) and Second Amendment (decommissioning financing) to 10.1.12 as amended June 1, 1972 and April 15, 1983, respectively (Exhibits 1 and 2, respectively, to the CEL Form 10-Q (June 1984), File No. 2-7909). 10.1.12.2 Third and Fourth Amendments to 10.1.12 as amended April 1, 1985 and June 1, 1985, respectively (Exhibit 1 and 2 to the CEL Form 10-Q (June 1986) File No. 2-7909). 10.1.12.3 Fifth and Sixth Amendments to 10.1.12 both as amended May 6, 1988 (Exhibit 1 to the CEL Form 10-Q (June 1988), File No. 2-7909). 10.1.12.4 Seventh Amendment to 10.1.12 as amended June 15, 1989 (Exhibit 2 to the CEL Form 10-Q (September 1989), File No. 2-7909). 10.1.12.5 Additional Power Contract between CEL and Vermont Yankee Nuclear Power Corporation providing for decommissioning financing and contract extension dated February 1, 1984 (Refiled as Exhibit 1 to the 1993 CEL Form 10-K, File No. 2-7909). 10.1.13 Power Contract between Maine Yankee Atomic Power Company and CEL dated May 20, 1968 (Exhibit 5 to the CES Form S-7, File No. 2- 38372). 10.1.13.1 First Amendment (decommissioning financing) and Second Amendment (supplementary payments) to 10.1.13 as amended March 1, 1984 and January 1, 1984, respectively (Exhibits 3 and 4 to the CEL Form 10-Q (June 1984), File No. 2-7909). 10.1.13.2 Third Amendment to 10.1.13 as amended October 1, 1984 (Exhibit 1 to the CEL Form 10-Q (September 1984), File No. 2-7909). 10.1.14 Participation Agreement between Maine Electric Power Company and CEL and/or NBGEL for the construction of a 345 KV transmission line between Wiscasset, Maine and Mactaquac, New Brunswick, Canada and for the purchase of base and peaking capacity from the New Brunswick Electric Power Commission, dated June 20, 1969 (Exhibit 13 to the CES Form 10-K for 1984, File No. 1-7316). 10.1.14.1 Supplement Amending 10.1.14, as amended June 24, 1970 (Exhibit 8 to the CES Form S-7, Amendment No. 1, File No. 2-38372). 10.1.15 Service Agreement for Non-Firm Transmission Service between Boston Edison Company and CEL dated July 5, 1984 (Exhibit 4 to the CEL 1984 Form 10-K, File No. 2-7909). CAMBRIDGE ELECTRIC LIGHT COMPANY 10.1.16 Power Exchange Agreement by and between Boston Edison Company and CEL dated December 1, 1984 (Exhibit 5 to the CEL 1984 Form 10-K, File No. 2-7909). 10.1.17 Agreement, dated September 1, 1985, With Respect To Amendment of Agreement With Respect To Use Of Quebec Interconnection, dated December 1, 1981, among certain New England Power Pool (NEPOOL) utilities to include Phase II facilities in the definition of "Project" (Exhibit 1 to the CEC Form 10-Q (September 1985), File No. 2-30057). 10.1.17.1 Amendatory Agreement No. 3 to 10.1.17, as amended June 1, 1990 (Exhibit 1 to the CEC Form 10-Q (September 1990), File No. 2- 30057). 10.1.18 Preliminary Quebec Interconnection Support Agreement - Phase II among certain NEPOOL utilities, dated June 1,1984 (Exhibit 6 to the CE Form 10-Q (June 1984), File No. 2-7749). 10.1.18.1 First, Second and Third Amendments to 10.1.18 as amended March 1, 1985, January 1, 1986 and March 1, 1987, respectively (Exhibit 1 to the CEC Form 10-Q (March 1987), File No. 2-30057). 10.1.18.2 Fourth and Eighth Amendments to 10.1.18 as amended July 1, 1987 and August 1, 1988, respectively (Exhibit 3 to the CEC Form 10-Q (September 1988), File No. 2-30057). 10.1.18.3 Fifth, Sixth and Seventh Amendments to 10.1.18 as amended October 15, 1987, December 15, 1987 and March 1, 1988, respectively (Exhibit 1 to the CEC Form 10-Q (June 1988), File No. 2-30057). 10.1.18.4 Ninth and Tenth Amendments to 10.1.18 as amended November 1, 1988 and January 15, 1989, respectively (Exhibit 2 to the CEC Form 10-K for 1988, File No. 2-30057). 10.1.18.5 Eleventh Amendment to 10.1.18 as amended November 1, 1989 (Exhibit 4 to the CEC Form 10-K for 1989, File No. 2-30057). 10.1.18.6 Twelfth Amendment to 10.1.18 as amended April 1, 1990 (Exhibit 1 to the CEC Form 10-Q (June 1990), File No. 2-30057). 10.1.19 Agreement to Preliminary Quebec Interconnection Support Agreement - Phase II among PSNH, New England Power Company, Boston Edison Company and CEC whereby PSNH assigns a portion of its interests under the original Agreement to the other three parties, dated October 1, 1987 (Exhibit 2 to the CEC 1987 Form 10-K, File No. 2-30057). 10.1.20 Phase II Equity Funding Agreement for New England Hydro- Transmission Electric Company, Inc. (New England Hydro (Massachusetts) between New England Hydro and certain NEPOOL utilities, dated June 1, 1985 (Exhibit 2 to the CEC Form 10-Q (September 1985), File No. 2-30057). CAMBRIDGE ELECTRIC LIGHT COMPANY 10.1.21 Phase II Equity Funding Agreement for New England Hydro- Transmission Corporation (New Hampshire Hydro) between New Hampshire Hydro and certain NEPOOL utilities, dated June 1, 1985 (Exhibit 3 to the CEC Form 10-Q (September 1985), File No. 2-30057). 10.1.21.1 Amendment No. 1 to 10.1.21 as amended May 1, 1986 (Exhibit 6 to the CEC Form 10-Q (March 1987), File No. 2-30057). 10.1.21.2 Amendment No. 2 to 10.1.21 as amended September 1, 1987 (Exhibit 3 to the CEC Form 10-Q (September 1987), File No. 2-30057). 10.1.22 Phase II Massachusetts Transmission Facilities Support Agreement dated June 1, 1985, refiled as a single agreement incorporating Amendments 1 through 7 dated May 1, 1986 through January 1, 1989, respectively, between New England Hydro-Transmission Electric Company, Inc. (New England Hydro) and certain NEPOOL utilities (Exhibit 2 the CEC Form 10-Q (September 1990), File No. 2-30057). 10.1.23 Phase II New Hampshire Transmission Facilities Support Agreement dated June 1, 1985, refiled as a single agreement incorporating Amendments 1 through 8 dated May 1, 1986 through January 1, 1990, respectively, between New England Hydro-Transmission Corporation (New Hampshire Hydro) and certain NEPOOL utilities (Exhibit 3 to the CEC Form 10-Q (September 1990), File No. 2-30057). 10.1.24 Phase II New England Power AC Facilities Support Agreement between New England Power and certain NEPOOL utilities, dated June 1, 1985 (Exhibit 6 to the CEC Form 10-Q (September 1985), File No. 2-30057). 10.1.24.1 Amendments Nos. 1 and 2 to 10.1.24 as amended May 1, 1986 and February 1, 1987, respectively (Exhibit 5 to the CEC Form 10-Q (March 1987), File No. 2-30057). 10.1.24.2 Amendments Nos. 3 and 4 to 10.1.24 as amended June 1, 1987 and September 1, 1987, respectively (Exhibit 5 to the CEC Form 10-Q (September 1987), File No. 2-30057). 10.1.25 Phase II Boston Edison AC Facilities Support Agreement between Boston Edison Company and certain NEPOOL utilities, dated June 1, 1985 (Exhibit 7 to the CEC Form 10-Q (September 1985), File No. 2-30057). 10.1.25.1 Amendments Nos. 1 and 2 to 10.1.25 as amended May 1, 1986 and February 1, 1987, respectively (Exhibit 2 to the CEC Form 10-Q (March 1987), File No. 2-30057). 10.1.25.2 Amendments Nos. 3 and 4 to 10.1.25 as amended June 1, 1987 and September 1, 1987, respectively (Exhibit 4 to the CEC Form 10-Q (September 1987), File No. 2-30057). CAMBRIDGE ELECTRIC LIGHT COMPANY 10.1.26 Agreement Authorizing Execution of Phase II Firm Energy Contract among certain NEPOOL utilities in regard to participation in the purchase of power from Hydro Quebec, dated September 1, 1985 (Exhibit 8 to the CEC Form 10-Q (September 1985), File No. 2-30057). 10.1.27 System Power Sales Agreement by and between Connecticut Light and Power (CL&P), Western Massachusetts Electric Company (Northeast Utilities companies), as sellers, and CEL, as buyer, of power in excess of firm power customer requirements from the electric systems of the Northeast Utilities companies, dated June 1, 1984, as effective October 25, 1985 (Exhibit 1 to the CEL 1985 Form 10-K, File No. 2-7909). 10.1.28 Power Sale Agreement by and between Altresco Pittsfield, L. P. and the Company for entitlement to the electric capacity and related energy to be produced by a cogeneration facility located in Pittsfield, Massachusetts, dated February 20, 1992 (Exhibit 1 to the CEL Form 10-Q (September 1993), File No. 2-7909). 10.1.28.1 System Exchange Agreement by and among Altresco Pittsfield, L.P., the Company, CE and New England Power Company, dated July 2, 1993 (Exhibit 3 to the CE Form 10-Q (September 1993), File No. 2-7749). 10.2 Other Agreements. 10.2.1 Pension Plan for Employees of Commonwealth Energy System and Subsidiary Companies as amended and restated January 1, 1993 (Exhibit 1 to the CES Form 10-Q (September 1993), File No. 1-7316). 10.2.2 Employees Savings Plan of Commonwealth Energy System and Subsidiary Companies as amended and restated January 1, 1993 (Exhibit 2 to the CES Form 10-Q (September 1993), File No. 1-7316). 10.2.2.1 First Amendment to the Employees Savings Plan of Commonwealth Energy System and Subsidiary Companies, as amended and restated as of January 1, 1993, effective October 1, 1994. (Exhibit 1 to the CES Form S-8 (January 1995), File No. 1-7316). 10.2.3 NEPOOL Agreement dated September 1, 1971 as amended through August 1, 1977 between NEGEA Service Corporation, as agent for CEL, CEC, NBGEL and various other electric utilities operating in New England, together with amendments dated August 15, 1978, January 31, 1979 and February 1, 1980 (Exhibit 5(c)13 to the CES Form S-16 (April 1980), File No. 2-64731). CAMBRIDGE ELECTRIC LIGHT COMPANY 10.2.3.1 Thirteenth Amendment to 10.2.3 dated September 1, 1981 (Exhibit 3 to the CES 1991 Form 10-K, File No. 1-7316). 10.2.3.2 Fourteenth through Twentieth Amendments to 10.2.3 as amended December 1, 1981, June 1, 1982, June 15, 1983, October 1, 1983, August 1, 1985, August 15, 1985 and September 1, 1985, respectively (Exhibit 4 to the CES Form 10-Q (September 1985), File No. 1-7316). 10.2.3.3 Twenty-first Amendment to 10.2.3 as amended to January 1, 1986 (Exhibit 1 to the CES Form 10-Q (March 1986), File No. 1-7316). 10.2.3.4 Twenty-second Amendment to 10.2.3 as amended to January 1, 1986 (Exhibit 1 to the CES Form 10-Q (September 1986), File No. 1-7316). 10.2.3.5 Twenty-third Amendment to 10.2.3 as amended April 30, 1987 (Exhibit 1 to the CES Form 10-Q (June 1987), File No. 1-7316). 10.2.3.6 Twenty-fourth Amendment to 10.2.3 as amended March 1, 1988 (Exhibit 1 to the CES 1987 Form 10-K, File No. 1-7316). 10.2.3.7 Twenty-fifth Amendment to 10.2.3 as amended May 1, 1988 (Exhibit 1 to the CES Form 10-Q (March 1988), File No. 1-7316). 10.2.3.8 Twenty-sixth Amendment to 10.2.3 as amended March 15, 1989 (Exhibit 1 to the CES Form 10-Q (March 1989), File No. 1-7316). 10.2.3.9 Twenty-seventh Amendment to 10.2.3 as amended October 1, 1990 (Exhibit 3 to the CES 1990 Form 10-K, File No. 1-7316). 10.2.3.10 Twenty-Eighth Amendment to 10.2.3 as amended September 15, 1992 (Exhibit 1 to the CES Form 10-Q (September 1994), File No. 1-7316). 10.2.3.11 Twenty-Ninth Amendment to 10.2.3 as amended May 1, 1993 (Exhibit 2 to the CES Form 10-Q (September 1994), File No. 1-7316). 10.2.4 Guarantee Agreement by CEL (as guarantor) and MYA Fuel Company (as initial lender) covering the unconditional guarantee of a portion of the payment obligations of Maine Yankee Atomic Power Company under a loan agreement and note initially between Maine Yankee and MYA Fuel Company (Exhibit 3 to the CEL 1985 Form 10-K, File No. 2-7909). Exhibit 27. Financial Data Schedule Filed herewith as Exhibit 1 is the Financial Data Schedule for the twelve months ended December 31, 1995. (b) Reports on Form 8-K No reports on Form 8-K were filed during the three months ended December 31, 1995. SCHEDULE I CAMBRIDGE ELECTRIC LIGHT COMPANY INVESTMENTS IN, EQUITY IN EARNINGS OF, AND DIVIDENDS RECEIVED FROM RELATED PARTIES FOR THE YEAR ENDED DECEMBER 31, 1995 (Dollars in Thousands)
1995 Balance Balance December 31, Equity December 31, Name of Issuer and 1994 in Dividends 1995 Description of Investment Shares Amount Earnings Received Amount Common Stock Connecticut Yankee Atomic Power Company 15 750 $4 583 $ 674 $ 693 $4 564 Maine Yankee Atomic Power Company 20 000 2 744 285 138 2 891 Vermont Yankee Nuclear Power Corporation 9 801 1 318 170 183 1 305 Yankee Atomic Electric Company 3 068 519 (18) 37 464 Total $9 164 $1 111 $1 051 $9 224 Other Investments Massachusetts Business Development Corporation 500 $ 5 $ 5 Total $ 5 $ 5 Under terms of the capital funds agreements and power contracts, no stock may be sold or transferred except to another stockholder; however, no market exists for these securities. See Note 3(e) of the Notes to Financial Statements included in Item 8 of this report for a discussion of the permanent closing of the nuclear plant owned by Yankee Atomic Electric Company.
SCHEDULE I CAMBRIDGE ELECTRIC LIGHT COMPANY INVESTMENTS IN, EQUITY IN EARNINGS OF, AND DIVIDENDS RECEIVED FROM RELATED PARTIES FOR THE YEAR ENDED DECEMBER 31, 1994 (Dollars in Thousands)
1994 Balance Balance December 31, Equity December 31, Name of Issuer and 1993 in Dividends 1994 Description of Investment Shares Amount Earnings Received Amount Common Stock Connecticut Yankee Atomic Power Company 15 750 $4 490 $ 743 $ 650 $4 583 Maine Yankee Atomic Power Company 20 000 2 776 245 277 2 744 Vermont Yankee Nuclear Power Corporation 9 801 1 317 158 157 1 318 Yankee Atomic Electric Company 3 068 476 43 - 519 Total $9 059 $1 189 $1 084 $9 164 Other Investments Massachusetts Business Development Corporation 500 $ 5 $ 5 Total $ 5 $ 5 Under terms of the capital funds agreements and power contracts, no stock may be sold or transferred except to another stockholder; however, no market exists for these securities. See Note 3(e) of the Notes to Financial Statements included in Item 8 of this report for a discussion of the permanent closing of the nuclear plant owned by Yankee Atomic Electric Company.
SCHEDULE I CAMBRIDGE ELECTRIC LIGHT COMPANY INVESTMENTS IN, EQUITY IN EARNINGS OF, AND DIVIDENDS RECEIVED FROM RELATED PARTIES FOR THE YEAR ENDED DECEMBER 31, 1993 (Dollars in Thousands)
1993 Balance Balance December 31, Equity December 31, Name of Issuer and 1992 in Dividends 1993 Description of Investment Shares Amount Earnings Received Amount Common Stock Connecticut Yankee Atomic Power Company 15 750 $4 518 $ 563 $ 591 $4 490 Maine Yankee Atomic Power Company 20 000 2 759 328 311 2 776 Vermont Yankee Nuclear Power Corporation 9 801 1 336 178 197 1 317 Yankee Atomic Electric Company 3 068 476 - - 476 Total $9 089 $1 069 $1 099 $9 059 Other Investments Massachusetts Business Development Corporation 500 $ 5 $ 5 Total $ 5 $ 5 Under terms of the capital funds agreements and power contracts, no stock may be sold or transferred except to another stockholder; however, no market exists for these securities. See Note 3(e) of the Notes to Financial Statements included in Item 8 of this report for a discussion of the permanent closing of the nuclear plant owned by Yankee Atomic Electric Company.
SCHEDULE II CAMBRIDGE ELECTRIC LIGHT COMPANY VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993 (Dollars in Thousands) Additions Balance at Provision Deductions Balance Beginning Charged to Accounts End Description of Year Operations Recoveries Written Off of Year Year Ended December 31, 1995 Allowance for Doubtful Accounts $471 $327 $101 $409 $490 Year Ended December 31, 1994 Allowance for Doubtful Accounts $491 $561 $ 92 $673 $471 Year Ended December 31, 1993 Allowance for Doubtful Accounts $453 $257 $280 $499 $491 CAMBRIDGE ELECTRIC LIGHT COMPANY FORM 10-K DECEMBER 31, 1995 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. CAMBRIDGE ELECTRIC LIGHT COMPANY (Registrant) By: WILLIAM G. POIST William G. Poist, Chairman of the Board and Chief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Principal Executive Officers: WILLIAM G. POIST March 28, 1996 William G. Poist, Chairman of the Board and Chief Executive Officer R. D. WRIGHT March 29, 1996 Russell D. Wright, President and Chief Operating Officer Principal Financial and Accounting Officer: JAMES D. RAPPOLI March 28, 1996 James D. Rappoli, Financial Vice President and Treasurer A majority of the Board of Directors: WILLIAM G. POIST March 28, 1996 William G. Poist, Director R. D. WRIGHT March 29, 1996 Russell D. Wright, Director JAMES D. RAPPOLI March 28, 1996 James D. Rappoli, Director EX-27 2 1995 FINANCIAL DATA SCHEDULE
UT This schedule contains summary financial information extracted from the balance sheet, statement of income, statement of retained earnings and statement of cash flows contained in Form 10-K of Cambridge Electric Light Company for the fiscal year ended December 31, 1995 and is qualified in its entirety by reference to such financial statements. 0000016573 CAMBRIDGE ELECTRIC LIGHT COMPANY 1,000 DEC-31-1995 DEC-31-1995 YEAR PER-BOOK 99,311 9,229 18,551 9,951 0 137,042 8,665 27,953 7,561 44,179 0 0 41,865 5,100 0 0 160 0 0 0 45,738 137,042 123,354 2,725 111,171 113,896 9,458 258 9,716 4,278 5,438 0 5,438 5,043 3,776 9,058 0 0
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