-----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, FMDkbMG+Ebjk+3vDX+i4pYPFEMqibhjABbE83g+Ve7byrpHVu8Ad8Cyg8EfVEsSY NlI/67OY/LTVxGi2awM5FQ== 0000031224-96-000018.txt : 19960502 0000031224-96-000018.hdr.sgml : 19960502 ACCESSION NUMBER: 0000031224-96-000018 CONFORMED SUBMISSION TYPE: U5S PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960501 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: EASTERN UTILITIES ASSOCIATES CENTRAL INDEX KEY: 0000031224 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 041271872 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: U5S SEC ACT: 1935 Act SEC FILE NUMBER: 001-05366 FILM NUMBER: 96554398 BUSINESS ADDRESS: STREET 1: ONE LIBERTY SQ STREET 2: P O BOX 2333 CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6173579590 U5S 1 ANNUAL REPORT ON FORM U5S - 1995 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. FORM U5S ANNUAL REPORT For the Year ended December 31, 1995 Filed pursuant to the Public Utility Holding Company Act of 1935 by Eastern Utilities Associates, P.O. Box 2333, Boston, Massachusetts 02107 04-1271872 (I.R.S. Employer Identification No.) FORM U5S-ANNUAL REPORT For the Calendar Year 1995 ITEMS ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 1995
% of Name of Company Number of Common Voting Issuer Owner's (add_abbreviation_used_herein)__Shares_Owned__ Power Book_Value Book_Value Eastern Utilities Associates Publicly Owned $375,273,128 $ (EUA or the Association) EUA Service Corporation 100 100% 3,857,832 3,857,832 (EUA Service) Blackstone Valley Electric 184,062 100% 37,044,875 37,044,875 Company (Blackstone) Newport Electric Corporation 1,000,000 100% 21,247,497 21,247,497 (Newport) Eastern Edison Company 2,891,357 100% 244,368,214 244,368,214 (Eastern Edison) Montaup Electric Company 586,000 100% 184,719,706 184,719,706 (Montaup) Preferred Stock 1,500,000 1,500,000 Debenture Bonds (Unsecured) 135,575,000 135,575,000 Pollution Control Bonds (Unsecured) - Net 36,594,730 36,594,730 EUA Cogenex Corporation 1,000 100% 52,584,275 52,584,275 (EUA Cogenex) EUA Citizens Conservation Services, Inc. 10,000 100% (17,680) (17,680) Northeast Energy Management, Inc. 10,000 100% 12,029,394 12,029,384 (NEM) EUA Highland Corporation 10,000 100% 4,505,027 4,505,027 APS Cogenex L.L.C. 50% 1,000 1,000 EUA Cogenex-Canada 100 100% 95,931 95,931 (Cogenex Canada) EUA WestCoast L.P. 50% 5,339,240 5,339,240 Promissory Note 9,691,256 9,691,256 EUA Energy Capital and Services I 50% 3,012,730 3,012,730 Promissory Note 5,431,057 5,431,057 EUA Energy Capital and Services II 50% 7,172,062 7,172,062 Promissory Note 12,153,018 12,153,018 ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 1995 (continued) % of Name of Company Number of Common Voting Issuer Owner's (add_abbreviation_used_herein) __Shares_Owned__ Power Book_Value Book_Value EUA FRC II Energy Partners 50% 744,309 744,309 Micro Utility Partners of America 50% (461,205) (461,205) Promissory Note 1,330,671 1,330,671 EUA Energy Investment Corporation 100 100% (9,050,832) (9,050,832) (EUA Energy) Eastern Unicord Corporation 1,000 100% (1,840,592) (1,840,592) (Unicord) EUA Transcapacity, Inc. 1,000 100% (1,471,180) (1,471,180) TransCapacity, L.P. 80% (2,553,086) (2,553,086) EUA Bioten, Inc. (4) 100 100% (207,692) (207,692) EUA Ocean State Corporation 1 100% 16,551,807 16,551,807 (EUA Ocean State) Ocean State Power I 29.9% 29.9% 30,467,902 30,467,902 Ocean State Power II 29.9% 29.9% 23,865,800 23,865,800 *Eastern Edison Electric Company 100% 1,000 1,000 _________ Organized under the Laws of the Commonwealth of Massachusetts on January 12, 1995 to engage in the business of energy conservation programs. Organized under the Laws of the Commonwealth of Massachusetts on April 14, 1995 to engage in the business of energy conservation programs, including but not limited to the creation of alternate energy sources. Organized under the Laws of Delaware on September 29, 1995 to engage in the business of providing energy conservation services. Organized under the Laws of the Commonwealth of Massachusetts on June 22, 1995 to engage in certain energy related research and development activities. Cumulative Voting. Wholly-owned by EUA. Wholly-owned by Eastern Edison. Wholly-owned by EUA Energy. Wholly-owned by EUA Cogenex. General Partnership Limited Partnership *Inactive
ITEM 2. ACQUISITIONS OR SALES OF UTILITY ASSETS Brief Description Name of Company of Transaction Consideration Exemptions ______(1)______ _______(2)_______ _____(3)_____ ____(4)___ Blackstone Valley Electric Sale of Land $ 3,500.00 44 (b) Park East Drive Woonsocket, RI Blackstone Valley Electric Sale of Land $ 3,000.00 44 (b) Phoenix Street Central Falls, RI Eastern Edison Company Sale of Land $35,000.00 44 (b) American Legion Highway Westport, MA ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF SYSTEM SECURITIES Type of Maximum Amount Name of Issuer Security Outstanding During 1993 Exemption ______(1)_____ ___(2)__ _________(3)___________ ___(4)___ None The following refers to short-term borrowing by EUA system companies during 1995: Balance at Highest Date of Effective year-end Balance Highest Average (000) During year Balance Interest Rate __________ (000)______ For year____ $38,861 $55,209 8/15/95 6.07% EUA Cogenex is required under certain contracts with various government entities and utility companies to maintain either a letter of credit or performance bond to collateralized performance under the contract. These contingent liabilities will only be drawn by the customer if EUA Cogenex fails to perform under the construction contract. The highest amount outstanding during 1995 and the year end balance was approximately $8.0 million and $5.5 million, respectively, for the letters of credit and $3.9 million and $3.7 million, respectively for the performance bonds. ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES
Name of Company Acquiring, Name of Issuer Redeeming Number of Shares or and or Retiring Principal Amount Title of Issue Securities Acquired, Redeemed, Consideration Authorization ______(1)______ ______(2)_____ __or_Retired_(3)___ _____(4)_____ _____(5)_____ Blackstone: Blackstone First Mortgage Bonds 9 1/2% due 2004 $ 1,500,000 $ 1,500,000 (a) Eastern Edison: Eastern Edison First Mortgage and Collateral Trust Bonds: 8.9% due 1995 10,000,000 10,000,000 (a) Unsecured Medium Term Notes: 9-9 1/4% due 1995 25,000,000 25,000,000 (a) Newport: Newport Preferred Stock, $100 par value: 9.75% issue 1,000 shs. $ 100,000 (a) First Mortgage Bonds: 8.95% due 2001 $ 650,000 $ 650,000 (a) 9% due 1999 14,000 14,000 (a) Small Business Administration Loan: 6.5% due 2005 $ 83,893 $ 83,893 (a) EUA Cogenex: EUA Cogenex Unsecured Notes: 800,000 800,000 (a) 9.6% due 2001 EUA Service: EUA Service Secured Notes: 10.20% due 2008 $2,200,000 $2,200,000 (a) EUA Ocean State: EUA Ocean State Unsecured Notes: 9.59% due 2011 $2,476,660 $2,476,660 (a) (a) Rule 42
ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES
% of Number of Shares Voting or Principal Book Name of Owner Name of Issuer Security Owned Power Amount Owned Value ____(1)______ ______(2)_____ ______(3)_____ _(4)_ ______(5)_______ (6)_ Eastern Edison Aggregate member of investments - six (6) $ 50,405 Montaup Electric Yankee Atomic Capital Stock 4.5 6,903 shares 1,057,275 Electric Co. * " " Conn. Yankee Capital Stock 4.5 15,750 shares 4,554,202 Atomic Power Co.* " " Vermont Yankee Capital Stock 2.5 9,801 shares 1,353,213 Nuclear Power Corp. * " " Maine Yankee Capital Stock 4.0 20,000 shares 2,947,550 Atomic Power Co. * " " NH Hydro Trans. Capital Stock 3.3 130,812 shares 2,005,874 Electric Co. ** " " NH Hydro Capital Stock 3.3 703,115 shares 1,304,320 Trans. Corp. **
___________ *Regional nuclear generating company. **Owner of Transmission Facilities. Item 6. Officers and Directors Part I. As of December 31, 1995. ________________ Names_of_System_Companies_with_which_Connected________
Blackstone Eastern EUA Valley Newport Eastern Utilities Service Electric Electric Edison Associates Corporation Company___ Corporation Company Russell A. Boss One Albion Road TR Lincoln, RI 02865 J. Thomas Brett 275 Slater St.,Ste 1700 Ottawa, Canada K1P 5H9 Richard M. Burns One Liberty Square CM, AT, AS D, CM, AT, VP, AT, AS VP, AT VP, AT, AC Boston, MA 02109 AS, AC, VP John D. Carney P.O. Box 543 EVP D, EVP D, P D, P D, P W. Bridgewater, MA 02379 Paul J. Choquette, Jr. 7 Jackson Walkway TR Providence, RI 02940 Peter S. Damon P. O. Box 450 TR Middletown, RI 02842 James L. Day 7931 Rae Boulevard Victor, NY 14564 Janice P. DeBarros Boott Mills South 100 Foot of John Street Lowell, MA 01852 Peter B. Freeman 100 Alumni Drive TR Providence, RI 02906 David H. Gulvin P.O. Box 543 D, SVP D, SVP D, SVP D, SVP W. Bridgewater, MA 02379 Barbara A. Hassan P.O. Box 543 VP VP VP VP W. Bridgewater, MA 02379 Clifford J. Hebert, Jr. One Liberty Square T,S T,S,C T,S T,S T,C Boston, MA 02109 Michael J. Hirsh P.O. Box 543 VP VP VP VP W. Bridgewater, MA 02379 Edward J. Kaitz Boott Mills South 100 Foot of John Street Lowell, MA 01852 Kevin A. Kirby P.O Box 543 D, VP VP VP VP W. Bridgewater, MA 02379 Arthur P. Lennon 704 Executive Blvd. Valley Cottage, NY 10989 Larry A. Liebenow 941 Grinnell Street TR Fall River, MA 02721
Item 6. Officers and Directors - Continued ___________Names_of_System_Companies_with_which_Connected________ Part I. As of December 31, 1995. Blackstone
Eastern EUA Valley Newport Eastern Utilities Service Electric Electric Edison Associates Corporation _Company__ Corporation Company Edward T. Liston Boott Mills South D, VP 100 Foot of John Street Lowell, MA 01852 Jacek Makowski One Bowdoin Square TR Boston, MA 02114 Wesley W. Marple 413 Hayden Hall TR Northeastern University Boston, MA 02115 Stephen Morgan Booth Mills South 100 Foot of John Street Lowell, MA 01852 Peter Oatman 2970 Wilderness Pl. Boulder, CO. 80301 William F. O'Connor P.O. Box 543 VP W. Bridgewater, MA 02379 Basil G. Pallone Booth Mills South 100 Foot of John Street Lowell, MA 01852 Donald G. Pardus One Liberty Square TR, CH, CEO D, CH D, CH D, CH D, CH Boston, MA 02109 Robert G. Powderly P.O. Box 543 EVP D, EVP D, EVP D, EVP D, EVP W. Bridgewater, MA 02379 Leonard Rozek 2970 Wilderness Pl. Boulder, CO. 80301 William A. Sifflard 200 Thurber Blvd Smithfield, RI 02917 Margaret M. Stapleton P. O. Box 111 TR Boston, MA 02117 John R. Stevens One Liberty Square TR, COO, P D, P D, VCH D, VCH D, VCH Boston, MA 02109 Thomas N. Stoner, Jr. 2970 Wilderness Pl. Boulder, CO 80301 W. Nicholas Thorndike 150 Dudley Street TR Brookline, MA 02146 Mark S. White Boott Mills South 100 Foot of John Street Lowell, MA 01852
Item 6. Officers and Directors - Continued Part I. As of December 31, 1995.
______Names_of_System_Companies_with_which_Connected____ Montaup EUA EUA Energy EUA Electric Cogenex Investment Ocean State Company_ Corporation Corporation Corporation Russell A. Boss One Albion Road Lincoln, RI 02865 J. Thomas Brett 275 Slater St., Ste 1700 Ottawa, Canada K1P 5H9 Richard M. Burns One Liberty Square, VP, AT, AC D, CM, AT D, VP, AT, AC AT Boston, MA 02109 John D. Carney P.O. Box 543 D, EVP D, EVP D, EVP EVP W. Bridgewater, MA 02379 Paul J. Choquette, Jr. 7 Jackson Walkway D Providence, RI 02940 Peter S. Damon P. O. Box 450 Middletown, RI 02842 James L. Day 7931 Rae Boulevard VP Victor, NY 14564 Janice P. DeBarros Boott Mills South 100 Foot of John Street Lowell, MA 01852 Peter B. Freeman 100 Alumni Drive Providence, RI 02960 David H. Gulvin P.O. Box 543 D, VP W. Bridgewater, MA 02379 Barbara A. Hassan P.O. Box 543 W. Bridgewater, MA 02379 Clifford J. Hebert, Jr. One Liberty Square T,C T,C T,C T,S Boston, MA 02109 Michael J. Hirsh P.O. Box 543 W. Bridgewater, MA 02379 Edward J. Kaitz Boott Mills South VP 100 Foot of John Street Lowell, MA 01852 Kevin A. Kirby P.O Box 543 D, VP D, VP W. Bridgewater, MA 02379 Arthur P. Lennon 704 Executive Blvd. VP Valley Cottage, NY 10989 Larry A. Liebenow 941 Grinnell Street Fall River, MA 02721
Item 6. Officers and Directors - Continued Part I. As of December 31, 1995.
________Names_of_System_Companies_with_which_Connected__ Montaup EUA EUA Energy EUA Electric Cogenex Investment Ocean State Company_ Corporation Corporation Corporation Edward T. Liston Boott Mills South D,P 100 Foot of John Street Lowell, MA 01852 Jacek Makowski One Bowdoin Square Boston, MA 02114 Wesley W. Marple 413 Hayden Hall D Northeastern University Boston, MA 02115 Stephen Morgan Booth Mills South 100 Foot of John Street Lowell, MA 01852 Peter Oatman 2970 Wilderness Pl. Boulder, CO. 80301 William F. O'Connor P.O. Box 543 W. Bridgewater, MA 02379 Basil G. Pallone Boott Mills South EVP 100 Foot of John Street Lowell, MA 01852 Donald G. Pardus One Liberty Square D, CH D, CH D, CH D, CH Boston, MA 02109 Robert G. Powderly P.O. Box 543 D, EVP D, EVP D, EVP D, EVP W. Bridgewater, MA 02379 Leonard Rozek 2970 Wilderness Pl. Boulder, CO. 80301 William A. Sifflard 200 Thurber Blvd VP Smithfield, RI 02917 Margaret M. Stapleton P. O. Box 111 D Boston, MA 02117 John R. Stevens One Liberty Square D, P D, VCH D, P D, P Boston, MA 02109 Thomas N. Stoner, Jr. 2970 Wilderness Pl. Boulder, CO 80301 W. Nicholas Thorndike 150 Dudley Street D Brookline, MA 02146 Mark S. White Boott Mills South VP, ACM, AC 100 Foot of John Street Lowell, MA 01852
Item 6. Officers and Directors Part I. As of December 31, 1995.
________Names_of_System_Companies_with_which_Connected___________________ EUA EUA Northeast EUA Citizens EUA EUA Cogenex TransCapacity Energy Conservation Highland Bioten Canada, Inc. Inc._________ Management Inc. Services Corp. Corp. Inc. Russell A. Boss One Albion Road Lincoln, RI 02865 J. Thomas Brett 275 Slater St. Ste 1700 D Ottawa, Canada K1P5H9 Richard M. Burns One Liberty Square VP, CM,AT D, AT VP,CM CM,AT CM,AT D,AT Boston, MA 02109 John D. Carney P.O. Box 543 EVP D,EVP W. Bridgewater, MA 02379 Paul J. Choquette, Jr. 7 Jackson Walkway Providence, RI 02940 Peter S. Damon P. O. Box 450 Middletown, RI 02842 James L. Day 7931 Rae Boulevard Victor, NY 14564 Janice P. DeBarros Boott Mills South VP 100 Foot of John Street Lowell, MA 01852 Peter B. Freeman 100 Alumni Drive Providence, RI 02906 David H. Gulvin P.O. Box 543 W. Bridgewater, MA 02379 Barbara A. Hassan P.O. Box 543 W. Bridgewater, MA 02379 Clifford J. Hebert, Jr. One Liberty Square T, AS T,C T,C T,C T,C T,C Boston, MA 02109 Michael J. Hirsh P.O. Box 543 W. Bridgewater, MA 02379 Edward J. Kaitz Boott Mills South 100 Foot of John Street Lowell, MA 01852 Kevin A. Kirby P.O Box 543 W. Bridgewater, MA 02379 Arthur P. Lennon 704 Executive Blvd. VP Valley Cottage, NY 10989 Larry A. Liebenow 941 Grinnell Street Fall River, MA 02721
Item 6. Officers and Directors - Continued Part I. As of December 31, 1995
____________Names_of_System_Companies_with_which_Connected________________ EUA EUA Northeast EUA Citizens EUA EUA Cogenex TransCapacity Energy Conservation Highland Bioten Canada, Inc. Inc._________ Management Inc. Services Corp. Corp. Inc. Edward T. Liston Boott Mills South P D,P D,EVP D,EVP 100 Foot of John Street Lowell, MA 01852 Jacek Makowski One Bowdoin Square Boston, MA 02114 Wesley W. Marple 413 Hayden Hall Northeastern University Boston, MA 02115 Stephen Morgan Booth Mills South P 100 Foot of John Street Lowell, MA 01852 Peter Oatman 2970 Wilderness Pl. VP Boulder, CO. 80301 William F. O'Connor P.O. Box 543 W. Bridgewater, MA 02379 Basil G. Pallone Booth Mills South VP VP EVP EVP 100 Foot of John Street Lowell, MA 01852 Donald G. Pardus One Liberty Square CH D, CH D, CH D D D,CH Boston, MA 02109 Robert G. Powderly P.O. Box 543 D, EVP D,EVP W. Bridgewater, MA 02379 Leonard Rozek 2970 Wilderness Pl. VP Boulder, CO. 80301 William A. Sifflard 200 Thurber Blvd Smithfield, RI 02917 Margaret M. Stapleton P. O. Box 111 Boston, MA 02117 John R. Stevens One Liberty Square VCH D, P D, VCH D D D,P Boston, MA 02109 Thomas N. Stoner, Jr. 2970 Wilderness Pl. P Boulder, CO 80301 W. Nicholas Thorndike 150 Dudley Street Brookline, MA 02146 Mark S. White Boott Mills South VP,AT,ACM VP,ACM,AC VP,AMC, 100 Foot of John Street AC Lowell, MA 01852
Item 6. OFFICERS AND DIRECTORS - Continued PART I. As of December 31, 1995. KEY CH - Chairman of the Board T - Treasurer VCH - Vice Chairman of the Board TR - Trustee P - President CM - Comptroller EVP - Executive Vice President AT - Assistant Treasurer SVP - Senior Vice President S - Secretary VP - Vice President AS - Assistant Secretary C - Clerk CEO - Chief Executive Officer AC - Assistant Clerk COO - Chief Operating Officer D - Director ACM - Assistant Comptroller Item 6. Officers and Directors (continued) Part II. As of December 31, 1995. Position Held Name of Name and Location of in Financial Applicable Officer or Director Financial Institution Institution Exemption Rule ________(1)________ _________(2)_________ _____(3)____ _____(4)______ Russell A. Boss Fleet National Bank Trustee Rule 70(1) Providence, RI Fleet Bank of MA Trustee Rule 70(1) Boston, MA Fleet Bank, N.A. Conn. Trustee Rule 70(1) Hartford, CT Paul J. Choquette, Jr. Fleet Financial Group Director Rule 70(1) Providence, RI Peter S. Damon Bank of Newport Trustee Rule 70(1) _____________________ (Note: In the answer to this part II of Item 6, the phrase "financial connection within the provisions of Section 17(c) of the Act" is regarded as being limited by the definitions in Paragraph (h) of Rule 70 under the Act as in effect at December 31, 1995.) Part III. (1) Information is set out below as to cash compensation paid by the Association and its subsidiaries for the years 1995, 1994 and 1993 to each of the five highest paid executive officers of each Company whose aggregate cash compensation for the year exceeded $100,000. Item 6. Part III - Officers and Directors (continued) Long-Term All Compensation Other Name and Annual Compensation Restricted Compen- Principal Fiscal Incentive Stock sation Position____ Year Salary __Bonus__ Other(1) Awards(2) (3) EUA Service Corporation Donald G. Pardus 1995 $400,025 $ 85,000 $13,696 $319,400 $10,000 Chairman 1994 390,025 100,000 13,083 - 9,750 1993 375,025 137,500 8,444 - 8,438 John R. Stevens 1995 $312,025 $ 68,000 $ 7,300 $202,561 $ 7,800 President 1994 300,025 80,000 13,475 - 7,500 1993 275,025 107,500 12,071 - 6,188 Robert G. Powderly 1995 $168,025 $ 32,787 $ 9,790 $ 71,024 $ 4,200 Executive Vice 1994 156,025 40,999 8,350 - 3,900 President 1993 143,025 44,559 8,710 - 3,218 John D. Carney 1995 $155,775 $ 32,787 $ 4,025 $ 72,750 $ 3,894 Executive Vice 1994 140,025 34,207 4,229 - 3,500 President 1993 134,025 38,867 6,618 - 3,015 David H. Gulvin 1995 $140,025 $ 33,925 $ 2,803 $ 54,924 $ 3,500 Senior Vice 1994 134,625 33,925 3,053 - 3,645 President 1993 126,625 37,497 2,978 - 2,848 Blackstone, Eastern Edison and Newport Electric The Chief Executive Officer and the four other most highly compensated executive officers of Blackstone, Newport and Eastern Edison hold the same or similar positions with EUA Service and are not paid directly by either Blackstone, Newport or Eastern Edison. The information required by this item is the same as shown above under EUA Service Corporation. Item 6. Part III - Officers and Directors (continued) Long-Term All Compensation Other Name and Annual Compensation Restricted Compen- Principal Fiscal Incentive Stock sation Position Year Salary __Bonus__ Other(1) Awards(4) (3) EUA Cogenex Corporation Edward T. Liston 1995 153,640 - 1,890 52,900 3,842 President 1994 131,920 - 3,464 - 3,721 1993 120,525 40,588 2,372 - 3,376 Richard P. Eannarino 1995 99,431 60,000 734 - 2,361 Vice President 1994 156,515 - 941 - 3,750 1993 150,045 - - - 1,543 Basil G. Pallone 1995 122,486 - 2,783 42,504 3,062 Executive 1994 102,525 - 2,783 - 2,562 Vice President Arthur P. Lennon 1995 101,275 - 1,021 - 2,526 Vice President 1994 121,300 - 1,523 - 3,024 1993 119,400 40,588 1,552 - 3,457 Edward J. Kaitz 1995 102,958 - 2,598 22,540 2,573 Vice President ___________________ (1) Represents amounts reimbursed for tax liability accruing as a result of personal use of company-owned automobiles. (2) Aggregate amount and value (including the value reflected in the table under "Restricted Stock Awards") of shares held under Association's Restricted Stock Plan to the officers listed above are as follows: Mr. Pardus, 13,887 shares, $319,400; Mr. Stevens, 8,807 shares, $202,561; Mr. Powderly, 3,088 shares, $71,024; Mr. Carney, 3,163 shares, $72,750; and, Mr. Gulvin, 2,388 shares, $54,924. Dividends are paid on these shares. (3) Contributions made under the Association's Employees' Savings Plan. (4) Aggregate amount and value (including the value reflected in the table under "Restricted Stock Awards") of shares granted under Restricted Stock Plans to the officers listed above is as follows: Mr. Liston, 2,300 shares, $52,900; Mr. Pallone, 1,848 shares, $42,504; Mr. Kaitz, 980 shares, $22,540. (B) Securities Interest Common Shares of the Association Beneficially_Owned_at_January_6,_1996(a) Executive Employees Stock Jointly Savings Grant Individual Owned(b) Plan___ Plan__ Total Russell A. Boss 1,000 - - - 1,000(c) Richard M. Burns 191 - 386 3,886 4,463 John D. Carney - - 1,070 6,138 7,208 Paul J. Choquette 1,132 - - - 1,132 Peter S. Damon 200 833 - - 1,033 Peter B. Freeman 2,292 - - - 2,292 David H. Gulvin 1,795 1,217 1,028 4,919 8,959 Clifford J. Hebert, Jr. 1,179 - 1,601 3,112 5,892 Edward J. Kaitz 383 - 367 650 1,400 Kevin A. Kirby 94 - 745 1,755 2,594 Larry A. Liebenow - 1,000 - - 1,000 Edward T. Liston 1,627 - 996 2,300 4,924 Wesley W. Marple 1,885 - - - 1,885(d) Jacek Makowski - 200 - - 200 Basil G. Pallone 430 139 476 3,080 4,125 Donald G. Pardus 2,642 8,079 4,526 24,194 39,441 Robert G. Powderly 1,325 176 1,505 6,357 9,363 Margaret M. Stapleton 1,326 - - - 1,326 John R. Stevens 1,053 4,220 1,602 16,905 23,780 W. Nicholas Thorndike 2,146 - - - 2,146 Trustees and Executive Officers as a Group 39,904 34,764 22,282 78,969 175,919(e) (a) Unless otherwise indicated, beneficial ownership is based on sole investment and voting power. Each individual's ownership represents less than two-tenths of one percent of the outstanding common shares of the Association. (b) Jointly owned with spouse. (c) In addition, Mr. Boss owns 5 shares of Blackstone Valley Electric Company's 4.25% Preferred Stock. (d) In addition, Mr. Marple's spouse owns 197 EUA common shares. Mr. Marple disclaims any beneficial interest in such shares. (e) Represents less than one percent of the outstanding common shares of the Association. (C) Contracts and Transactions with System Companies See Section (E) below regarding severance agreements. (D) Indebtedness to System Companies None (E) The Employees' Retirement Plan of Eastern Utilities Associates and its Affiliated companies (the "Pension Plan") is a tax-qualified defined benefit plan available to employees who have completed one year of service and have attained the age of twenty-one. All of the officers referred to in the Summary Compensation Table above participate in the Pension Plan. Trustees who are not also employees of the Association and its subsidiaries (the "EUA System") are not covered by the Pension Plan. The benefits of participants become fully vested after five years of service. Annual lifetime benefits are determined under formulas applicable to all employees, regardless of position, and the amounts depend on length of credited service and salaries prior to retirement. Benefits are equal to one and six tenths percent of salaries (averaged over the four years preceding retirement) for each year of credited service up to thirty-five, reduced for each year by one and two tenths percent of the participants' estimated age sixty-five Social Security benefit, plus seventy-five hundredths percent of salaries for each year of credited service in excess of thirty-five years up to the Pension Plan maximum of forty years. Any contributions to provide benefits under the Pension Plan are made by the EUA System in amounts determined by the Pension Plan's actuaries to meet the funding standards established by the Employee Retirement Income Security Act of 1974, as amended. Any contributions are actuarially determined and cannot appropriately be allocated to individual participants. The annual benefits shown in the tables below are straight life annuity amounts, without reduction for primary Social Security benefits as described above. Federal law limits the annual benefits payable from qualified pension plans in the form of a life annuity, after reduction for Social Security benefits, to $120,000 (for 1995 and 1996) plus adjustments for increases in the cost of living. The number of years of service credited at present under the Plan to Messrs. Pardus, Stevens, Carney, Powderly and Burns are thirty-three, thirty, twenty-nine, sixteen and twenty, respectively. Average Annual ____________________Years_of_Service________________________ _____Salary____ ____15________20________25________30________35_________40___ $100,000 $ 24,000 $ 32,000 $ 40,000 $ 48,000 $ 56,000 $ 59,750 200,000 48,000 64,000 80,000 96,000 112,000 119,500 300,000 72,000 96,000 120,000 144,000 168,000 179,250 400,000 96,000 128,000 160,000 192,000 224,000 239,000 500,000 120,000 160,000 200,000 240,000 280,000 298,750 600,000 144,000 192,000 240,000 288,000 336,000 358,500 The Association has a Key Executive Plan for certain officers of the Association and its subsidiaries. This plan provides for the annual payment of supplemental retirement benefits equal to 25% of the officer's base salary when he retires, for a period of fifteen (15) years following the date of retirement. In addition, in the event of the death of the participant prior to retirement an amount equal to 200% of the officer's base salary at that time will be paid to his beneficiary. A grantor trust has been established by the Association to help ensure the performance of its payment obligations under the Key Executive Plan. Any amounts not covered by trust payments or otherwise will be paid from funds available to the EUA System. The Association maintains a non-qualified, unfunded retirement plans ("The Restoration Plans") to restore benefits under the qualified plans' formulas which are not covered under the qualified plan trusts due to federal limitations on either earnings, contributions or benefits. Payments or contributions which exceed the applicable federal limitations are made outside the qualified plans in the same manner and under the same conditions as are applicable to benefits payable from, or contributions payable to, the qualified plans. A grantor trust has been established by the Association to ensure the performance of its payment obligations under these plans. Any amounts not covered by trust payments or otherwise will be paid from funds available to the EUA System. Severance agreements with executive officers of the Association and certain of its affiliates provide that an officer's rate of compensation, benefits, responsibilities and other conditions of employment will not be reduced during the term of the agreement, which is thirty-six months commencing upon the date on which a Change in Control, as defined in the agreements, of the Association occurs. If within thirty-six months after a Change in Control the officer's employment is terminated for any reason other than Cause, as defined in the agreements, the Association will, (i) pay the officer within five business days a lump-sum cash amount generally equal to the present value of the additional wages and retirement benefits that the executive would have received in return for completing and additional three years of service, (ii) continue or vest certain fringe benefits and common share grants, (iii) reimburse legal fees and expenses incurred as a result of the termination or to enforce the provisions of the severance agreement and (iv) reimburse for a portion of the taxes on certain of the foregoing payments, including any amount contributing a "parachute payment" under the Internal Revenue Code. If the officer leaves the employ of the Association or a subsidiary following a reduction in his position, compensation, responsibilities, authority or other benefits existing prior to the Change in Control, or suffers a relocation of regular employment of more than fifty miles, such departure will be deemed to be a termination for reason other than Cause. (F) Rights to Indemnity Article 32 of EUA's Declaration of Trust, as set forth in Exhibit B-1(a), to Form U5S of EUA for the year ended December 31, 1986 is incorporated herein by reference. ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS Accounts Charged if any, Per Books Name of Recipient of Disbursing Name of Company of Beneficiary Purpose Company Amount ______(1)_____ ______(2)_______ _ (3)__ ______(4)_______ _(5)__ Blackstone Edison Electric Lobbying 426.4 $ 6,568 Institute Expenditures Blackstone Tillinghast, Collins Lobbying 426.4 $17,081 & Graham Expenditures Blackstone David Correira, Esq. Lobbying 426.4 $19,250 Expenditures Blackstone United Way Donations 426.1 $24,750 Blackstone Miscellaneous Donations 426.1 $31,930 Donations less than $10,000 Eastern Edison Edison Electric Lobbying 426.4 $13,261 Institute Expenditures Eastern Edison Metro South Chamber Civic 426.4 $ 390 of Commerce Eastern Edison Good Neighbor Donations 426.1 $10,748 Energy Fund Eastern Edison United Way Donations 426.1 $35,000 Eastern Edison Miscellaneous Donations 426.1 $10,610 Donations less than $10,000 Newport Electric Edison Electric Lobbying 426.4 $ 2,775 Institute Expenditures Newport Electric Tillinghast, Collins Lobbying 426.4 $ 3,027 & Graham Expenditures Newport Electric David Correira, Esq. Lobbying 426.4 $ 8,250 Expenditures Newport Electric United Way Donations 426.1 $12,835 Newport Electric Miscellaneous Donations 426.1 $19,454 Donations less than $10,000 ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS-(continued) Accounts Charged if any, Per Books Name of Recipient of Disbursing Name of Company of Beneficiary Purpose Company Amount ______(1)______ _______(2)_______ __(3)__ _______(4)_______ __(5)__ Montaup Electric Various Payments Lobbying 426.4 $ 1,000 Under $1,000 Expenditures Montaup Electric Seabrook #1 Lobbying 426.4 $ 2,550 Expenditures Montaup Electric Miscellaneous Donations 426.1 $ 5,591 Donations Less than $10,000 Montaup Electric United Way Donations 426.1 $ 6,800 ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS Part I. None Part II. No Part III. No ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES None ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (*Filed herewith) The following financial statements and supplemental schedules are filed as a part of this Annual Report. FINANCIAL STATEMENTS 1 - Consolidating Balance Sheets - December 31, 1995 of Eastern Utilities Associates and Subsidiary Companies, Eastern Edison Company and Subsidiary, EUA Cogenex Corporation and Subsidiaries, and EUA Energy Investment Corporation and Subsidiaries. 2 - Consolidating Statements of Capitalization - December 31, 1995 of Eastern Utilities Associates and Subsidiary Companies, Eastern Edison Company and Subsidiary, EUA Cogenex Corporation and Subsidiaries, and EUA Energy Investment Corporation and Subsidiaries. 3 - Consolidating Income Statements for the year ended December 31, 1995 of Eastern Utilities Associates and Subsidiary Companies, Eastern Edison Company and Subsidiary, EUA Cogenex Corporation and Subsidiaries, and EUA Energy Investment Corporation and Subsidiaries. 4 - Consolidating Statements of Cash Flows for the year ended December 31, 1995 of Eastern Utilities Associates and Subsidiary Companies, Eastern Edison Company and Subsidiary, EUA Cogenex Corporation and Subsidiaries, and EUA Energy Investment Corporation and Subsidiaries. 5 - Consolidating Statements of Retained Earnings and Other Paid-In Capital for the year ended December 31, 1995 of Eastern Utilities Associates and Subsidiary Companies, Eastern Edison Company and Subsidiary, EUA Cogenex Corporation and Subsidiaries, and EUA Energy Investment Corporation and Subsidiaries. 6 - Notes to Financial Statements (page 56). Exhibits Exhibit A - (incorporated herein by reference) A-1 Form 10-K of EUA, Blackstone and Eastern Edison for 1995 (including Annual Reports to Shareholders and Proxy Statement, portions of which are incorporated therein by reference; File No. 1-5366, 0-8480, and 0-2602). Exhibit B - B-1 Declaration of Trust of EUA, dated April 2, 1928, as amended (Exhibit A-3, File No. 70-3188; Exhibit 1 to EUA's 8-K reports for April in each of the years 1957, 1962, 1966, 1968, 1972, and 1973, File No. 1-5366; Exhibit A-1 (a), Amendment No. 2 to Form U-1, File No. 70-5997, Exhibit 4-3, Registration No. 2-72589; Exhibit 1 to Certificate of Notification, File No. 70-6713; Exhibit 1 to Certificate of Notification, File No. 70-7084; Exhibit 3-2, Form 10-K of EUA for 1987, File No. 1-5366). B-2 Charter of Blackstone (formerly Blackstone Valley Gas and Electric Company), as amended (Exhibit (a)(1) and (a)(2), Form 1-A filed March, 1957, File No. 24B-970; Exhibit A-2, Form U5S of Eastern Utilities Associates ("EUA") for the year 1958, File No. 1-5366; Exhibit (1), Form 8-K for March, 1965 File No. 0-2602; Exhibit A-2, Form U5S of EUA for the year 1966, File No. 1-5366 and Exhibit (1), Form 8-K for June 1976, File No. 0-2602; Exhibit (1), Form 10-Q for quarter ended June 30, 1988, File No. 0-2602); Exhibit 3-3, Form 10-K of Blackstone for 1989, File No. 0-2602). B-3 By-laws of Blackstone, (Exhibit A-2, Form U-1 filed October 16, 1990, File No. 70-7769). B-4 Restated and Amended Articles of Organization of Eastern Edison, (Exhibit B-4 to Form U5S of EUA for 1993). B-5 By-laws of Eastern Edison, as amended (Exhibit 3-2, Form 10-K of Eastern Edison for 1980, File No. 0-8480). B-6 Charter of Montaup Electric Company ("Montaup"), as amended (Exhibits A-6(a), A-6(b) and A-6(c) to Post Effective Amendment No. 18 to Form U-1, File No. 70-5388; Exhibit 3, Form 10-K of EUA for 1977, File No. 1-5366; and Exhibit 6 to Form U5S of EUA for 1979). B-7 By-laws of Montaup, as amended (Exhibit 4, Form 10-K of EUA for 1977, File No. 1-5366). B-8 Charter of EUA Service Corporation (Exhibit A-1, File No. 37-67). B-9 By-laws of EUA Service Corporation, as amended (Exhibit 2, Form 10-K of EUA for 1977, File No. 1-5366). B-10 Charter of EUA Cogenex Corporation, as amended (Exhibit A-1, File No. 70-7287, Exhibit B-15 to Form U5S of EUA for 1986). B-11 By-Laws of EUA Cogenex Corporation, as amended (Exhibit A-2, File No. 70-7287, to Form U5S of EUA for 1986). B-12 Agreement of Limited Partnership among Onsite Energy and EUA Cogenex Corporation dated as of November 30, 1988 (Exhibit A-4 to Post-Effective Amendment No. 3 of Form U-1, File No. 70-7825, dated October 21, 1991). B-13 EUA/FRCII Energy Associates Agreement of Limited Partnership dated as of September 19, 1989 (Exhibit A-5 to Post-Effective Amendment No. 3 of Form U-1, File No. 70-7825, dated October 21, 1991). B-14 Micro Utility Partners of America, L.P., Agreement of Limited Partnership dated as of December 20, 1988 (Exhibit A-6 to Post-Effective Amendment No. 3 of Form U-1, File No. 70-7825, dated October 21, 1991). B-15 Energy Capital and Services I, LP, Agreement of Limited Partnership dated as of April 10, 1990 (Exhibit A-7 to Post-Effective Amendment No. 3 of Form U-1, File No. 70-7825, dated October 21, 1991). B-16 EUA/SYCOM General Partnership Agreement dated as of September 20, 1989 (Exhibit A-9 to Post-Effective Amendment No. 3 of Form U-1, File No. 70-7825, dated October 21, 1991). B-17 EUA/Highland Energy Partners, Agreement of Limited Partnership dated as of September 27, 1990 (Exhibit A-10 to Post-Effective Amendment No. 3 of Form U-1, File No. 70-7825, dated October 21, 1991). B-18 Articles of Incorporation of EUA Energy Investment Corporation (Exhibit B-14 to Form U5S of EUA for 1987). B-19 By-Laws of EUA Energy Investment Corporation (Exhibit B-15 to Form U5S of EUA for 1987). B-20 Articles of Incorporation of EUA Ocean State Corporation (Exhibit B-16 to Form U5S of EUA for 1988). B-21 By-Laws of EUA Ocean State Corporation (Exhibit B-17 to Form U5S of EUA for 1988). B-22 Charter of Newport, as amended (Exhibit B-18 to Form U5S of EUA for 1990). B-23 By-Laws of Newport (Exhibit B-19 to Form U5S of EUA for 1990). B-24 Ocean State Power Amended and Restated General Partnership Agreement among EUA Ocean State, Ocean State Power Company, TCPL Power Ltd., Narragansett Energy Resources Company and NECO Power, Inc. (collectively, the "OSP Partners") dated as of December 2, 1988, as amended March 27, 1989 (Exhibit 10-107, Form 10-K of EUA for 1989, File No. 1-5366, Exhibits 10-3.12, 10-4.12 and 10-5.12, Form 10K of EUA for 1994, File No. 1-5366). B-25 Ocean State Power II Amended and Restated General Partnership Agreement among EUA Ocean State, JMC Ocean State Corporation, Makowski Power, Inc., TCPL Power Ltd., Narragansett Energy Resources Company and Newport Electric Power Corporation (collectively, the "OSP II Partners") dated as of September 29, 1989 (Exhibit 10-110, Form 10-K of EUA for 1989, File No. 1-5366). B-26 Articles of Organization of EUA Transcapacity, Inc. (Exhibit A-1 File No. 70-8283). B-27 By-Laws of EUA Transcapacity, Inc. (Exhibit A-2 File No. 70-8283). B-28 Amended and Restated Agreement of Limited Partnership of TransCapacity Limited Partnership (Exhibit A-2 File No. 70-8283). B-29 Articles of Incorporation of EUA Cogenex-Canada (Exhibit A-1 File No. 70-8441). B-30 By-Law No.1 of EUA Cogenex-Canada (Exhibit A-2 File No. 70-8441). B-31 Articles of Organization of NEM (Exhibit A-2 File No. 70-8255). B-32 By-Laws of NEM (Exhibit A-3 File No. 70-8255). B-33 Articles of Organization of EUA Highland (Exhibit A-2 File No. 70-8523). B-34 By-Laws of EUA Highland (Exhibit A-3 File No. 70-8523). B-35 Articles of Organization of EUA Citizens Conservation Service, Inc. (Exhibit A-1 File No. 70-8473). B-36 By-Laws of EUA Citizens Conservation Services, Inc. (Exhibit A-2 File No. 70-8473). B-37 Articles of Organization of EUA Bioten, Inc. (Exhibit A-1 File No. 70-8617). B-38 By-laws of EUA Bioten, Inc. (Exhibit A-2 File No. 70-8617). B-39 Certificate of Formation of APS Cogenex L.L.C. (Exhibit A-1 File No. 70-8663). B-40 Limited liability company operating agreement for APS Cogenex L.L.C. (Exhibit B-2 File No. 70-8663). B-41 1995 Agreement of General Partnership of BIOTEN General Partnership (Exhibit A-3 File No. 70-8617). Exhibit C - (a) C-1 Form of 8% Debenture Bonds due 2000 of Montaup (Exhibit 4-10, Registration File No. 2-41488). C-2 Form of 8-1/4% Debenture Bonds due 2003 of Montaup (Exhibit B-3, Form U5S of EUA for year 1973). C-3 Form of 14% Debenture Bonds due 2005 of Montaup (Exhibit 4-11, Registration No. 2-55990). C-4 Form of 10% Debenture Bonds due 2008 of Montaup (Exhibit 5-3, Registration No. 2-65785). C-5 Form of 16-1/2% Debenture Bonds due 2010 of Montaup (Exhibit 4-11, Form 10-K of EUA for 1980, File No. 1-5366). C-6 Form of 12-3/8% Debenture Bonds due 2013 of Montaup (Exhibit 4-13, Form 10-K of EUA for 1983, File No. 1-5366). C-7 Form of 9% Debenture Bonds due 2020 of Montaup (Exhibit 4-10, Form 10-K of Eastern Edison for 1990, File No. 0-8480). C-8 Form of 9-3/8% Debenture Bonds due 2020 of Montaup (Exhibit 4-11, Form 10-K of Eastern Edison for 1990, File No. 0-8480). C-9 Indenture of First Mortgage and Deed of Trust dated as of September 1, 1948 of Eastern Edison (Exhibit 4-1, Registration No. 2-77468), and twenty-six supplements thereto (Exhibit A, File No. 70-3015; Exhibit A-3, File No. 70-3371; Exhibit C to Certificate of Notification, File No. 70-3371; Exhibit D to Certificate of Notification, File No. 3619; Exhibit D to Certificate of Notification, File No. 70-3798; Exhibit F to Certificate of Notification, File No. 70-4164; Exhibit D to Certificate of Notification, File No. 70-4748; Exhibit C to Certificate of Notification, File No. 70-5195; Exhibit F to Certificate of Notification, File No. 70-5379; Exhibit C to Certificate of Notification, File No. 70-5719; Exhibit 5-24 Registration No. 2-65785; Exhibit F to Certificate of Notification, File No. 70-6463; Exhibit C to Certificate of Notification, File No. 70-6608; Exhibit C to Certificate of Notification, File No. 70-6737; Exhibit F to Certificate of Notification, File No. 70-6851; Exhibit 4-31, Form 10-K of EUA for 1984, File No. 1-5366; Exhibit F to Certificate of Notification, File No. 70-7254; Exhibit C to Certificate of Notification, File No. 70-7373; Exhibit C to Certificate of Notification, File No. 70-7373; Exhibit C to Certificate of Notification, File No. 70-7373; Exhibit F to Certificate of Notification, File No. 20-7511; Exhibit 4-34, Form 10-K of Eastern Edison for 1990, File No. 0-8480; Exhibit 4-24, Form 10-K of Eastern Edison for 1992, File No. 0-8480; Exhibit 4-35, Form 10-K of Eastern Edison for 1990, File No. 0-8480; Exhibit 4-36, Form 10-K of Eastern Edison for 1990, File No. 0-8480; Exhibit C-33 to Form U5S of EUA for 1993; Exhibit C-34 to Form U5S of EUA for 1993; Exhibit 4-29.08, Form 10-K of Eastern Edison for 1994, File No. 0-8480). C-10 Form of Eastern Edison Medium Term Note (Exhibit 4-36, Form 10-K of Eastern Edison for 1990, File No. 0-8480). C-11 First Mortgage Indenture and Deed of Trust dated as of December 1, 1980 of Blackstone (Exhibit A, Form 8-K of EUA dated January 14, 1981, File No. 1-5366). C-12 First Supplemental Indenture dated as of August 1, 1989 of Blackstone (Exhibit 4-33, Form 10-K of EUA for 1989, File 1-5366). C-13 Second Supplemental Indenture dated as of November 26, 1990 of Blackstone (Exhibit 4-3, Form 10-K of BVE for 1990, File No. 0-2602). C-14 Loan Agreement between Rhode Island Industrial Facilities Corporation and Blackstone dated as of December 1, 1984 (Exhibit 10-72, Form 10-K of EUA for 1984, File No. 1-5366). C-15 Note Purchase Agreement dated as of January 13, 1988 of Service (Exhibit 4-38, Form 10-K of EUA for 1987, File No. 1-5366). C-16 Note Agreement dated as of June 28, 1990 of EUA Cogenex with the Prudential Insurance Company of America (Exhibit 4-46, Form 10-K of EUA for 1990, File No. 1-5366). C-17 Note Agreement dated as of October 29, 1991 between EUA Cogenex and Prudential Insurance Company of America (Exhibit 4-55, Form 10-K of EUA for 1991, File No. 1-5366). C-18 Note Purchase Agreement dated as of September 29, 1992 of EUA Cogenex and the Prudential Life Insurance Company of America (Exhibit 4-44 to Form 10-K of EUA for 1992, File No. 1-5366). C-19 Indenture dated September 1, 1993 between EUA Cogenex and the Bank of New York as Trustee (Exhibit 4-4.10, Form 10-K of EUA for 1993, File No. 1-5366). C-20 Guaranty, dated June 28, 1990, made by Eastern Utilities Associates in favor of The Prudential Insurance Company of America (Exhibit B-2 to Form U-1, File No. 70-7655, dated June 14, 1990). C-21 Indenture of First Mortgage dated as of June 1, 1954 of Newport, as supplemented on August 1, 1959, April 1, 1962, October 1, 1964, April 1, 1967, September 1, 1969, September 1, 1970, June 1, 1978, October 1, 1978, May 1, 1986, December 1, 1987 and November 1, 1989 (Exhibit 4-49, Form 10-K of EUA for 1990, File No. 1-5366). C-22 United States Government Small Business Administration Loan to Newport entitled, "Base Closing Economic Injury Loan", signed May 30, 1975 and amended on October 6, 1983 (Exhibit 4-50, Form 10-K of EUA for 1990, File No. 1-5366). C-23 Indenture of Second Mortgage dated as of September 1, 1982 of Newport, as supplemented on December 1, 1988 (Exhibit 4-51, Form 10-K of EUA for 1990, File No. 1-5366). C-24 Note Purchase Agreement dated as of January 16, 1992 between EUA Ocean State Corporation and John Hancock Mutual Life Insurance Company (Exhibit 4-56, Form 10-K of EUA for 1991, File No. 1-5366). C-25 Guaranty, dated January 16, 1992 made by EUA in favor of John Hancock Mutual Life Insurance Company (Exhibit 10-125, Form 10-K of EUA for 1991, File No. 1-5366). C-26 Trust Agreement dated as of July 1, 1993 between Massachusetts Industrial Finance Agency and Shawmut Bank, N.A. (filed as Exhibit 10-1.08 to Eastern Edison's Form 10-K for 1993, File No. 0-8480). C-27 Loan Agreement dated as of July 1, 1993 between Massachusetts Industrial Finance Agency and Eastern Edison (filed as Exhibit 10-2.08 to Eastern Edison's Form 10-K for 1993, File No. 0-8480). C-28 Power Purchase Agreement entered into as of September 20, 1993 by and between Meridian Middleboro Limited Partnership and Eastern Edison Company (filed as Exhibit 10-3.08 to Eastern Edison's Form 10-K for 1993, File No. 0-8480). C-29 Inducement Letter dated July 14, 1993 from Eastern Edison to the Massachusetts Industrial Finance Agency and Goldman, Sachs & Company and Citicorp Securities Markets, Inc. (filed as Exhibit 10-4.08 to Eastern Edison's Form 10-K for 1993, File No. 0-8480). C-30 Indenture dated September 1, 1993 between EUA Cogenex and the Bank of New York as Trustee (filed as Exhibit 4-4.10 to EUA's Form 10-K for 1993, File No. 1-5366). C-31 Loan Agreement between the Rhode Island Port Authority and Economic Development Corporation and Newport Electric Corporation dated as of January 6, 1994 (filed as Exhibit 4-14.14 to EUA's Form 10-K for 1993, File No. 1-5366). C-32 Trust Indenture between the Rhode Island Authority and Economic Development Corporation and Newport Electric Corporation dated as of January 1, 1994 (filed as Exhibit 4-5.14 to EUA's Form 10-K for 1993, File No. 1-5366). C-33 Letter of Credit and Reimbursement Agreement among Newport and the Canadian Imperial Bank of Commerce dated January 6, 1994 (filed as Exhibit 4-6.14 to EUA's Form 10-K for 1993, File No. 1-5366). C-34 Memorandum of understanding by and between Canal Electric Company and Montaup Electric Company dated September 23, 1993 (Exhibit 10-39.05, Eastern Edison 10-K for 1993, File No. 0-8480). C-35 Ancillary Agreement by and between Algonquin Gas Transmission Company, Canal Electric Company and Montaup Electric Company dated October 8, 1993 (Exhibit 10-40.05 of Eastern Edison 10-K for 1993, File No. 0-8480). (b) None *Exhibit D - Tax allocation agreement for 1996 pursuant to Rule 45(c). Exhibit E - Other documents. None. Exhibit F - Supporting schedules. None. *Exhibit G - Financial Data Schedules. Filed Electronically via EDGAR. Exhibit H - None. Exhibit I - None. SIGNATURE The undersigned system company has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized, pursuant to the requirements of the Public Utility Holding Company Act of 1935. EASTERN UTILITIES ASSOCIATES and Subsidiaries By /s/_Clifford J. Hebert, Jr. Clifford J. Hebert, Jr. (Treasurer) May 1, 1996 EASTERN UTILITIES ASSOCIATES AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEETS DECEMBER 31, 1995 ASSETS
Blackstone Eastern EUA Valley EUA Utilities Service Electric Consolidated Eliminations Associates Corporation Company Utility plant and other investments: Utility plant in service $1,037,662,571 $ $ $30,410,487 $135,148,674 Less accumulated provision for depreciation and amortization 324,146,198 11,551,875 48,023,950 Net utility plant in service 713,516,373 18,858,612 87,124,724 Construction work in progress 7,569,630 1,425,389 1,354,541 Net utility plant 721,086,003 20,284,001 88,479,265 Non-utility property 112,803,790 70,206 Less accumulated provision for depreciation 30,457,293 23,212 Net non-utility property 82,346,497 46,994 Investments in subsidiaries (at equity) 70,210,359 366,647,573 366,647,573 Excess of carrying values of investments in subsidiaries 17,488 17,488 Other 67,139,467 1,000 Total Utility Plant and Other Investments 940,799,814 366,647,573 366,666,061 20,284,001 88,526,259 Current Assets: Cash and temporary cash investments 4,060,214 187,960 254,299 753,220 Notes and Leases receivable 18,663,246 16,143,757 16,143,757 Accounts receivable - Net: Customers 61,095,962 11,254,408 Accrued unbilled revenue 11,311,126 1,338,710 Others 11,968,351 2,791,750 1,155,138 567,345 4,726,405 Accounts receivable - associated companies 0 37,247,653 1,995,073 8,696,602 428,631 Materials and Supplies (at average cost): Fuel 7,449,734 Plant materials and operating supplies 9,065,987 57,020 939,069 Other current assets 11,804,078 704,578 499,699 392,888 Total Current Assets 135,418,698 56,183,160 20,186,506 10,074,965 19,833,331 Deferred Debits: Unamortized debt expense 5,348,686 112,118 709,909 Unrecovered regulatory plant costs (Note A) 10,100,000 Other deferred debits 108,605,937 11,716,541 1,839,956 14,908,004 Total Deferred Debits 124,054,623 11,716,541 1,952,074 15,617,913 Total assets $1,200,273,135 $422,830,733 $398,569,108 $32,311,040 $123,977,503
EASTERN UTILITIES ASSOCIATES AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEETS (continued) DECEMBER 31, 1995
ASSETS EUA Newport Eastern EUA Energy EUA Electric Edison Cogenex Investment Ocean State Corporation Consolidated Consolidated Consolidated Corporation Utility plant and other investments: Utility plant in service $76,904,158 $795,199,252 $ $ $ Less accumulated provision for depreciation and amortization 22,897,501 241,672,872 Net utility plant in service 54,006,657 553,526,380 Construction work in progress 1,283,225 3,506,475 Net utility plant 55,289,882 557,032,855 Non-utility property 2,715,349 108,640,560 1,377,675 Less Accumulated provision for depreciation 9,697 30,033,093 391,291 Net non-utility property 2,705,652 78,607,467 986,384 Investments in subsidiaries (at equity) 13,222,435 1,000 2,653,222 54,333,702 Excess of carrying values of investments in subsidiaries Other 50,405 66,885,178 177,382 25,502 Total Utility Plant and Other Investments 55,289,882 573,011,347 145,493,645 3,816,988 54,359,204 Current Assets: Cash and temporary cash investments 214,757 532,988 1,503,436 468,363 145,191 Notes and Leases receivable 17,762,795 900,451 Accounts receivable - Net: Customers 4,977,527 25,730,121 19,133,906 Accrued Unbilled Revenue 814,829 9,157,587 Others 1,481,769 2,347,648 3,102,864 1,378,932 0 Accounts receivable - associated companies 241,585 25,861,102 24,660 0 Materials and Supplies (at average cost): Fuel 64,575 7,385,159 Plant materials and operating supplies 787,022 3,936,913 3,345,963 Other current assets 310,556 4,170,083 5,690,165 31,940 4,169 Total Current Assets 8,892,620 79,121,601 50,563,789 2,779,686 149,360 Deferred Debits: Unamortized debt expense 521,795 2,847,178 710,083 447,603 Unrecovered Regulatory Plant Costs (Note A) 10,100,000 Other deferred debits 3,566,237 74,118,188 2,347,610 109,401 Total Deferred Debits 4,088,032 87,065,366 3,057,693 109,401 447,603 Total assets $68,270,534 $739,198,314 $199,115,127 $6,706,075 $54,956,167
EASTERN UTILITIES ASSOCIATES AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEETS DECEMBER 31, 1995
LIABILITIES Capitalization: Common equity $375,229,217 $366,647,579 $375,273,128 $3,857,832 $37,044,874 Non-redeemable preferred stock of subsidiaries 6,900,625 0 0 0 6,129,500 Redeemable preferred stock of 0 0 0 0 0 subsidiaries - net 29,701,229 0 0 0 0 Preferred stock redemption cost (3,446,743) 0 0 0 0 Long-term debt - net 434,871,091 0 0 11,200,000 36,500,000 Total Capitalization 843,255,419 366,647,579 375,273,128 15,057,832 79,674,374 Current Liabilities: Preferred stock sinking fund requirements 50,000 0 0 0 0 Long-term debt due within one year 19,506,229 0 0 1,100,000 1,500,000 Notes payable 39,540,304 16,143,757 18,358,000 0 1,259,000 Accounts payable 35,768,721 0 17,157 1,802,317 281,820 Accounts payable - associated companies 0 35,569,990 3,503,881 178,806 17,370,364 Customer deposits 3,318,287 0 0 0 992,240 Taxes accrued 4,543,808 2,791,743 854,122 10,149 1,777,185 Interest accrued 10,860,802 1,677,662 947,518 635,168 980,594 Dividends accrued 81,590 0 0 0 72,188 Other current liabilities 16,530,843 0 1,111,943 86,442 430,910 Total Current Liabilities 130,200,584 56,183,152 24,792,621 3,812,882 24,664,301 Deferred Credits: Unamortized investment credit 21,880,523 0 0 0 2,743,072 Other deferred credits 64,196,239 0 137,079 12,024,332 7,979,275 Total Deferred Credits 86,076,762 137,079 12,024,332 10,722,347 Accumulated deferred taxes 140,740,370 2 (1,633,720) 1,415,994 8,916,481 Commitments and contingencies (Note J) Total Liabilities and Capitalization $1,200,273,135 $422,830,733 $398,569,108 $32,311,040 $123,977,503 ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
EASTERN UTILITIES ASSOCIATES AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEETS (continued) DECEMBER 31, 1995
LIABILITIES (continued) Capitalization: Common equity $21,247,497 $244,368,214 $52,584,275 ($9,050,831) $16,551,807 Non-redeemable preferred stock of subsidiaries 771,050 75 Redeemable preferred stock of subsidiaries - net 36,727 29,664,502 Preferred stock redemption cost (3,446,743) Long-term debt - net 21,291,122 222,313,093 112,500,000 31,066,876 Total Capitalization 43,346,396 492,899,066 165,084,350 (9,050,831) 47,618,683 Current Liabilities: Preferred stock sinking fund requirements 50,000 Long-term debt due within one year 729,569 7,000,000 6,700,000 2,476,660 Notes payable 1,344,000 4,158,000 14,366,231 16,198,830 Accounts payable 226,946 27,241,874 6,130,039 68,568 0 Accounts payable - associated companies 9,887,342 3,913,045 644,655 47,855 24,042 Customer deposits 702,366 1,103,531 520,150 Taxes accrued 668,992 3,218,803 122,225 684,075 Interest accrued 466,377 4,998,814 2,564,262 1,677,662 268,069 Dividends accrued 9,402 Other current liabilities 452,059 7,331,785 7,009,094 107,428 1,182 Total Current Liabilities 14,537,053 58,965,852 38,056,656 18,100,343 3,454,028 Deferred Credits: Unamortized investment credit 1,295,754 17,841,697 Other deferred credits 2,147,959 40,725,734 2,338,529 (1,156,669) Total Deferred Credits 3,443,713 58,567,431 2,338,529 (1,156,669) Accumulated deferred taxes 6,943,372 128,765,965 (6,364,408) (1,186,768) 3,883,456 Commitments and contingencies (Note J) Total Liabilities and Capitalization $68,270,534 $739,198,314 $199,115,127 $6,706,075 $54,956,167 ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
EASTERN UTILITIES ASSOCIATES AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF CAPITALIZATION DECEMBER 31, 1995
Blackstone Eastern EUA Valley EUA Utilities Service Electric Consolidated Eliminations Associates Corporation Company Common Equity: Common shares, $5 par value of Registrant $102,183,820 $92,856,906 $102,183,820 $1,000 $9,203,100 Other paid-in capital 220,729,950 133,254,048 220,729,950 3,500,000 17,907,930 Common share expense (3,912,393) (742,214) (3,868,482) Retained earnings 56,227,840 141,278,839 56,227,840 356,832 9,933,844 Total Common Equity 375,229,217 366,647,579 375,273,128 3,857,832 37,044,874 Non-Redeemable Preferred: 4.25%, $100 par value, 35,000 shares 3,500,000 3,500,000 5.60%, $100 par value, 25,000 shares 2,500,000 2,500,000 3.75%, $100 par value, 7,689 shares 768,900 $.01 par value, 7,500 shares 75 Premium, net of expense 131,650 129,500 Total Non-Redeemable 6,900,625 0 0 0 6,129,500 Redeemable Preferred: 6.625%, $100 par value, 300,000 shares 30,000,000 9.75%, $100 par value, 900 shares 90,000 Expense, net of premium (338,771) Preferred stock redemption cost (3,446,743) Sinking Fund Due Within One Year (50,000) Total Redeemable 26,254,486 Long-Term Debt: Secured Notes: 10.2% due 2008 12,300,000 12,300,000 Unsecured Notes: 9.59% due 2011 33,543,536 7% due 2000 50,000,000 7.22% due 1997 15,000,000 9.6% due 2001 19,200,000 10.56% due 2005 35,000,000 Variable Rate Bonds: Demand due 2014 6,500,000 6,500,000 Revenue Refunding due 2011 7,925,000 First Mortgage and Collateral Trust Bonds: 5.875% due 1998 20,000,000 6.875% due 2003 40,000,000 8% due 2023 40,000,000 6.35% due 2003 8,000,000 4.875% due 1996 7,000,000 7.78% Secured medium-term notes due 2002 35,000,000 5.75% due 1998 40,000,000 Pollution Control Revenue Bonds: 5.875% due 2008 40,000,000 First Mortgage Bonds: 9.5% due 2004 (Series B) 13,500,000 13,500,000 10.35% due 2010 (Series C) 18,000,000 18,000,000 9% due 1999 1,386,000 9.8% due 1999 8,000,000 8.95% due 2001 3,900,000 Second Mortgage Bonds: 6.5% SBA Loan due 2005 809,691 Unamortized (Discount) - Net (686,907) 454,377,320 0 0 12,300,000 38,000,000 Less portion due within one year 19,506,229 1,100,000 1,500,000 Total Long-Term Debt 434,871,091 0 0 11,200,000 36,500,000 Total Capitalization 843,255,419 366,647,579 375,273,128 15,057,832 79,674,374 Authorized 36,000,000 shares, outstanding 20,436,764 Authorized and Outstanding. The Preferred Stock shall be entitled to an annual dividend per share at a rate equal to 33% of the net income of Citizens Conservation Services divided by 7,500. Authorized 400,000 shares, outstanding 300,000. Weighted average interest rate was 3.9% for 1995. The accompanying notes are an integral part of the financial statements.
EASTERN UTILITIES ASSOCIATES AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF CAPITALIZATION (continued) DECEMBER 31, 1995
EUA Newport Eastern EUA Energy EUA Electric Edison Cogenex Investment Ocean State Corporation Consolidated Consolidated Consolidated Corporation Common Equity: Common shares, $5 par value of Registrant $11,368,779 $72,283,925 $100 $1 $1 Other paid-in capital 9,000,000 47,249,633 45,787,287 999 9,808,199 Common share expense (742,214) (43,911) Retained earnings 1,620,932 124,878,567 6,796,888 (9,051,831) 6,743,607 Total Common Equity 21,247,497 244,368,214 52,584,275 (9,050,831) 16,551,807 Non-Redeemable Preferred: 4.25%, $100 par value, 35,000 shares 5.60%, $100 par value, 25,000 shares 3.75%, $100 par value, 7,689 shares 768,900 $.01 par value, 7,500 shares 75 Premium, net of expense 2,150 Total Non-Redeemable 771,050 75 Redeemable Preferred: 6.625%, $100 par value, 300,000 shares 30,000,000 9.75%, $100 par value, 900 shares 90,000 Expense, net of premium (3,273) (335,498) Preferred stock redemption cost (3,446,743) Sinking Fund Due Within One Year (50,000) Total Redeemable 36,727 26,217,759 Long-Term Debt: Secured Notes: 10.2% due 2008 Unsecured Notes: 9.59% due 2011 33,543,536 7% due 2000 50,000,000 7.22% due 1997 15,000,000 9.6% due 2001 19,200,000 10.56% due 2005 35,000,000 Variable Rate Bonds: Demand due 2014 Revenue Refunding due 2011 7,925,000 First Mortgage and Collateral Trust Bonds: 5.875% due 1998 20,000,000 6.875% due 2003 40,000,000 8% due 2023 40,000,000 6.35% due 2003 8,000,000 4.875% due 1996 7,000,000 7.78% Secured medium-term notes due 2002 35,000,000 5.75% due 1998 40,000,000 Pollution Control Revenue Bonds: 5.875% due 2008 40,000,000 First Mortgage Bonds: 9.5% due 2004 (Series B) 10.35% due 2010 (Series C) 9% due 1999 1,386,000 9.8% due 1999 8,000,000 8.95% due 2001 3,900,000 Second Mortgage Bonds: 6.5% SBA Loan due 2005 809,691 Unamortized (Discount) - Net (686,907) 22,020,691 229,313,093 119,200,000 0 33,543,536 Less portion due within one year 729,569 7,000,000 6,700,000 2,476,660 Total Long-Term Debt 21,291,122 222,313,093 112,500,000 0 31,066,876 Total Capitalization 43,346,396 492,899,066 165,084,350 (9,050,831) 47,618,683 Authorized 36,000,000 shares, outstanding 20,436,764 Authorized and Outstanding. The Preferred Stock shall be entitled to an annual dividend per share at a rate equal to 33% of the net income of Citizens Conservation Services divided by 7,500. Authorized 400,000 shares, outstanding 300,000 Weighted average interest rate was 3.9% for 1995. The accompanying notes are an integral part of the financial statements.
EASTERN UTILITIES ASSOCIATES AND SUBSIDIARY COMPANIES CONSOLIDATING INCOME STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1995
Blackstone Eastern EUA Valley EUA Utilities Service Electric Consolidated Eliminations Associates Corporation Company Operating Revenues $563,362,820 $138,191,693 $ $ $140,860,592 Operating Expenses: Operation 380,411,113 179,217,103 778,426 41,320,310 111,598,984 Maintenance 23,468,360 984,652 1,862 994,123 3,344,124 Voluntary Retirement Incentive 4,504,550 0 21,419 0 911,694 Depreciation and amortization 45,492,481 1,145,871 2,889 1,152,119 5,500,665 Taxes Other than income 20,743,288 5,320,280 9,687 2,354,107 8,820,938 Income Taxes - Current (credit) 11,783,168 48,832 976 7,354 1,147,068 - Deferred (credit) 5,231,375 (1,062,356) (53,080) 94,839 1,200,314 Total Operating Expenses 491,634,335 185,654,382 762,179 45,922,852 132,523,787 Operating Income 71,728,485 (47,462,689) (762,179) (45,922,852) 8,336,805 Other Income and Deductions: Interest and dividend income 6,659,658 1,174,656 1,171,245 3,447 82,845 Equity in earnings of jointly- owned companies 12,063,402 30,950,088 30,950,088 0 0 Allowance for other funds used during construction 537,784 4,445 44 4,446 33,795 Disposal of Cogeneration Operations (18,085,966) 0 0 0 0 Federal and State Taxes on Disposal of Cogeneration Operations 7,587,980 0 0 0 0 Other (deductions) income - net (4,086,002) 46,777,598 89,886 47,605,294 (120,905) Total Other Income 4,676,856 78,906,787 32,211,263 47,613,187 (4,265) Income Before Interest Charges 76,405,341 31,444,098 31,449,084 1,690,335 8,332,540 Interest Charges: Interest on long-term debt 38,215,697 0 0 1,254,600 3,480,700 Amortization of debt expense and premium 2,752,083 0 0 31,056 115,472 Other interest expense (principally short-term notes) 3,167,014 2,445,406 760,176 14,960 497,072 Allowance for borrowed funds used during construction - (credit) (2,676,676) (14,396) (144) (14,396) (59,128) Total Interest Charges 41,458,118 2,431,010 760,032 1,286,220 4,034,116 Net Income 34,947,223 29,013,088 30,689,052 404,115 4,298,424 Preferred Dividends Requirement 2,321,171 0 0 0 288,750 Earnings available for common shareholders $32,626,052 $29,013,088 $30,689,052 $404,115 $4,009,674 Earnings per EUA Common Share weighted average shares outstanding 20,238,961 $1.61 ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
EASTERN UTILITIES ASSOCIATES AND SUBSIDIARY COMPANIES CONSOLIDATING INCOME STATEMENTS (continued) FOR THE YEAR ENDED DECEMBER 31, 1995
EUA Newport Eastern EUA Energy EUA Electric Edison Cogenex Investment Ocean State Corporation Consolidated Consolidated Consolidated Corporation Operating Revenues $61,126,000 $420,068,710 $79,499,211 $ $ Operating Expenses: Operation 46,516,452 298,007,975 56,899,154 4,333,573 173,342 Maintenance 2,153,655 15,491,102 2,463,453 715 3,978 Voluntary Retirement Incentive 956,323 2,413,122 180,106 10,517 11,369 Depreciation and amortization 2,678,596 26,038,677 10,812,549 314,253 138,604 Taxes Other than income 3,864,161 10,233,645 756,057 15,687 9,286 Income Taxes - Current (credit) 886,799 12,891,558 624,359 (2,359,901) (1,366,213) - Deferred (credit) 381,931 2,761,513 (560,145) 348,598 (4,951) Total Operating Expenses 57,437,917 367,837,592 71,175,533 2,663,442 (1,034,585) Operating Income 3,688,083 52,231,118 8,323,678 (2,663,442) 1,034,585 Other Income and Deductions: Interest and dividend income 121,932 613,703 5,748,855 8,818 83,469 Equity in earnings of jointly- owned companies 0 1,646,357 0 (301,651) 10,718,696 Allowance for other funds used during construction 30,370 473,402 129 21 22 Disposal of Cogeneration Operations 0 0 (18,085,966) 0 0 Federal and State Taxes on Disposal of Cogeneration Operations 0 0 7,587,980 0 0 Other (deductions) income - net 305,413 (206,557) (1,303,351) 136,864 (3,815,048) Total Other Income 457,715 2,526,905 (6,052,353) (155,948) 6,987,139 Income Before Interest Charges 4,145,798 54,758,023 2,271,325 (2,819,390) 8,021,724 Interest Charges: 0 0 0 0 0 Interest on long-term debt 1,641,300 18,277,727 10,186,204 0 3,375,166 Amortization of debt expense and premium 126,527 2,299,383 151,670 0 27,975 Other interest expense (principally short-term notes) 307,418 1,241,495 1,928,042 852,741 10,516 Allowance for borrowed funds used during construction - (credit) (23,806) (503,283) (2,090,174) (69) (72) Total Interest Charges 2,051,439 21,315,322 10,175,742 852,672 3,413,585 Net Income 2,094,359 33,442,701 (7,904,417) (3,672,062) 4,608,139 Preferred Dividends Requirement 44,921 1,987,500 0 0 0 Earnings available for common shareholders 2,049,438 31,455,201 (7,904,417) (3,672,062) 4,608,139 Earnings per EUA Common Share weighted average shares outstanding The accompanying notes are an integral part of the financial statements.
EASTERN UTILITIES ASSOCIATES AND SUBSIDIARY COMPANIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1995
Blackstone Eastern EUA Valley EUA Utilities Service Electric Consolidated Eliminations Associates Corporation Company CASH FLOW FROM OPERATING ACTIVITIES: Net Income $34,947,223 $29,013,088 $30,689,052 $404,115 $4,298,424 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation and amortization 52,412,966 890,500 636,969 1,183,193 5,953,287 Amortization of nuclear fuel 3,646,532 0 0 0 0 Deferred taxes (985,013) (924,335) (70,410) 94,839 1,200,314 Non-cash (Gains)/Expenses on Sales of Investment in Energy Savings Projects (1,263,914) 0 0 0 0 Loss on disposition of cogeneration projects 18,085,996 0 0 0 0 Investment tax credit, net (1,212,041) 0 0 0 (183,653) Allowance for other funds used during construction (537,785) (4,228) 0 (4,446) (33,795) Collections and sales of project notes and leases receivable 17,747,698 0 0 0 0 Other - net 5,128,639 (8,791,625) (13,164,964) 3,150,880 643,479 Changes in Operating Assets and Liabilities: Accounts receivable 5,728,673 (13,221,258) (503,529) (915,532) (2,323,537) Materials and supplies (1,279,691) 0 0 5,142 (172,047) Notes receivable (900,451) 608,000 608,000 0 0 Accounts payable 1,542,523 9,673,857 3,433,332 (553,663) 7,539,905 Accrued taxes (1,920,918) 5,771,752 854,122 5,732 336,695 Other - net (18,178,749) 755,650 (612,947) (378,115) (7,239,169) Net Cash Provided from (Used in) Operating Activities 112,961,688 23,771,401 21,869,625 2,992,145 10,019,903 CASH FLOW FROM INVESTING ACTIVITIES: Construction expenditures (77,922,700) 4,228 0 (1,766,888) (5,064,276) Collections on notes and leases receivables of EUA Cogenex 3,125,256 0 0 0 0 Proceeds from Disposal of cogeneration Assets 11,500,650 0 0 0 0 Increase/Decrease in other investments (2,300,000) 0 0 0 0 Investments in subsidiaries 0 (5,759,000) (5,759,000) 0 0 Net Cash Used in Investing Activities (65,596,794) (5,754,772) (5,759,000) (1,766,888) (5,064,276) CASH FLOW FROM FINANCING ACTIVITIES: Issuances: Common shares/capital contribution 5,985,444 5,759,000 5,985,444 (1,000,000) 0 Redemptions: Long-term debt (42,724,553) 0 0 (2,200,000) (1,500,000) Preferred stock (100,000) 0 0 0 0 Premium on reacquisition and financing expenses (63,150) 0 (62,995) 0 0 EUA common share dividends paid (32,050,296) (23,167,629) (32,050,296) (383,000) (4,145,077) Subsidiary preferred dividends paid (2,323,608) 0 0 0 (288,750) Net increase (decrease) in short-term debt 7,862,231 (608,000) 10,156,000 0 1,259,000 Net Cash (Used in) Provided from Financing Activities (63,413,932) (18,016,629) (15,971,847) (3,583,000) (4,674,827) NET (DECREASE) INCREASE IN CASH (16,049,038) 0 138,778 (2,357,743) 280,800 Cash and temporary cash investments at beginning of year 20,109,252 0 49,182 2,612,042 472,420 Cash and temporary cash investments at end of year 4,060,214 0 187,960 254,299 753,220 Cash paid during the year for: Interest (net of amount capitalized) 39,306,175 (14,396) 835,157 1,369,658 3,564,950 Income Taxes(Refund) 9,411,704 0 0 (1,431,677) 690,000 Conversion of investments in energy savings projects to notes and leases receivable 19,324,256 0 0 0 0 ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
EASTERN UTILITIES ASSOCIATES AND SUBSIDIARY COMPANIES CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) FOR THE YEAR ENDED DECEMBER 31, 1995
EUA Newport Eastern EUA Energy EUA Electric Edison Cogenex Investment Ocean State Corporation Consolidated Consolidated Consolidated Corporation CASH FLOW FROM OPERATING ACTIVITIES: Net Income $2,094,359 $33,442,701 ($7,904,417) ($3,672,062) $4,608,139 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation and amortization 3,568,274 29,919,277 11,594,142 285,650 162,674 Amortization of nuclear fuel 0 3,646,532 0 0 0 Deferred taxes 381,931 2,694,288 (6,463,836) 348,598 (95,072) Non-cash (Gains)/Expenses on Sales of Investment 0 0 0 0 0 in Energy Savings Projects (1,263,914) Loss on disposition of cogeneration projects 0 0 18,085,996 0 0 Investment tax credit, net (86,160) (942,228) 0 0 0 Allowance for other funds used during construction (30,370) (473,402) 0 0 0 Collections and sales of project notes and leases receivable 0 0 17,747,698 0 0 Other - net (144,810) 1,152,106 3,477,891 (976,867) 2,199,299 Changes in Operating Assets and Liabilities: Accounts receivable (127,050) (7,055,113) 2,463,417 (294,394) 1,263,153 Materials and supplies 28,918 (1,678,331) 536,627 0 0 Notes receivable 0 0 0 (900,451) 0 Accounts payable (164,136) 827,288 323,645 (191,366) 1,375 Accrued taxes 166,537 1,807,596 (3,923) 0 684,075 Other - net (596,157) (6,630,345) (2,677,228) 730,291 (19,429) Net Cash Provided from (Used in) Operating Activities 5,091,336 56,710,369 35,916,098 (4,670,601) 8,804,214 CASH FLOW FROM INVESTING ACTIVITIES: Construction expenditures (2,977,336) (23,422,997) (44,172,122) (514,853) 0 Collections on Notes and Lease Receivables of EUA Cogenex 0 0 3,125,256 0 0 Proceeds from Disposal of Cogeneration Assets 0 0 11,500,650 0 0 Increase/Decrease in other investments 0 0 0 (2,300,000) 0 Investments in subsidiaries 0 0 0 0 0 Net Cash Used in Investing Activities (2,977,336) (23,422,997) (29,546,216) (2,814,853) 0 CASH FLOW FROM FINANCING ACTIVITIES: Issuances: Common shares/capital contribution 0 0 8,059,000 0 (1,300,000) Redemptions: Long-term debt (747,893) (35,000,000) (800,000) 0 (2,476,660) Preferred stock (100,000) 0 0 0 0 Premium on reacquisition and financing expenses (155) 0 0 0 0 EUA common share dividends paid (2,540,000) (11,189,552) 0 0 (4,910,000) Subsidiary preferred dividends paid (47,358) (1,987,500) 0 0 0 Net increase (decrease) in short-term debt 1,344,000 4,158,000 (17,113,770) 7,451,001 0 Net Cash (Used in) Provided from Financing Activities (2,091,406) (44,019,052) (9,854,770) 7,451,001 (8,686,660) NET (DECREASE) INCREASE IN CASH 22,594 (10,731,680) (3,484,888) (34,453) 117,554 Cash and temporary cash investments at beginning of year 192,163 11,264,668 4,988,324 502,816 27,637 Cash and temporary cash investments at end of year 214,757 532,988 1,503,436 468,363 145,191 Cash paid during the year for: Interest (net of amount capitalized) 1,635,765 18,342,980 9,735,901 405,437 3,401,931 Income Taxes(Refund) 720,353 9,044,141 657,296 (939,062) 670,653 Conversion of investments in energy savings projects to notes and leases receivable 0 0 19,324,256 0 0 ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
EASTERN UTILITIES ASSOCIATES AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF RETAINED EARNINGS AND OTHER PAID-IN CAPITAL DECEMBER 31, 1995
Blackstone Eastern EUA Valley EUA Utilities Service Electric Consolidated Eliminations Associates Corporation Company Balance of retained earnings at beginning of year $56,617,000 $134,461,298 $56,617,000 $335,717 $10,069,247 Additions: Net Income (Loss) 34,947,223 29,013,088 30,689,052 404,115 4,298,424 Total 91,564,223 163,474,386 87,306,052 739,832 14,367,671 Deductions: Dividends: Preferred - subsidiaries 2,321,172 0 0 0 288,750 Common - subsidiaries 0 23,167,629 0 383,000 4,145,077 Common - registrant - $1.585 per share 32,050,296 0 32,050,296 0 0 Total Dividends 34,371,468 23,167,629 32,050,296 383,000 4,433,827 Other 964,915 (972,085) (972,085) 0 0 Total Deductions 35,336,383 22,195,544 31,078,211 383,000 4,433,827 Balance of retained earnings at end of period 56,227,840 141,278,842 56,227,841 356,832 9,933,844 Other Paid-In Capital at Beginning of Year $212,990,551 $212,990,551 Additions: Excess of aggregate sales price over par value of 262,115 EUA Common Shares issued during 1995, in connection with the EUA Dividend Reinvestment and Common Share Purchase Plan and Employee Share Ownership Plans at an average price of $22.84 per Common Share 4,674,868 4,674,868 Highland Energy Group, Inc. acquisition May (176,258 shs.) 3,318,057 3,318,057 Amortization restricted stock costs 431,013 431,013 Deductions: Unamortized Restricted stock costs (61,411 shs.) 309,484 309,484 TransCapacity investment 374,744 374,744 Other Paid-In Capital at End of Year $220,730,261 $220,730,261 ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
EASTERN UTILITIES ASSOCIATES AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF RETAINED EARNINGS AND OTHER PAID-IN CAPITAL (continued) DECEMBER 31, 1995
EUA Newport Eastern EUA Energy EUA Electric Edison Cogenex Investment Ocean State Corporation Consolidated Consolidated Consolidated Corporation Balance of retained earnings at beginning of year $2,115,131 $105,574,199 $14,701,305 ($5,379,769) $7,045,468 Additions: Net Income (Loss) 2,094,359 33,442,701 (7,904,417) (3,672,062) 4,608,139 Total 4,209,490 139,016,900 6,796,888 (9,051,831) 11,653,607 Deductions: Dividends: Preferred - subsidiaries 44,922 1,987,500 Common - subsidiaries 2,540,000 11,189,552 4,910,000 Common - registrant - $1.585 per share Total Dividends 2,584,922 13,177,052 4,910,000 Other 3,634 961,281 0 Total Deductions 2,588,556 14,138,333 0 0 4,910,000 Balance of retained earnings at end of period $1,620,934 $124,878,567 $6,796,888 ($9,051,831) $6,743,607 ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
EASTERN EDISON COMPANY AND SUBSIDIARY CONSOLIDATING BALANCE SHEETS DECEMBER 31, 1995
Eastern Eastern Montaup Edison Edison Electric ASSETS Consolidated Eliminations Company Company ------------ --------------- ------------ ------------ Utility plant and other investments: Utility plant in service $795,199,252 $0 $228,167,803 $567,031,449 Less accumulated provision for depreciation and amortization 241,672,872 0 77,817,437 163,855,435 ------------ --------------- ------------ ------------ Net Utility plant in service 553,526,380 0 150,350,366 403,176,014 Construction work in progress 3,506,475 0 675,205 2,831,270 ------------ --------------- ------------ ------------ Net utility plant 557,032,855 0 151,025,571 406,007,284 ------------ --------------- ------------ ------------ Non-utility property 2,715,349 0 105,735 2,609,614 Less accumulated provision for depreciation 9,697 0 9,697 0 ------------ --------------- ------------ ------------ Net non-utility property 2,705,652 0 96,038 2,609,614 Investments in subsidiaries (at equity) 13,222,435 358,389,436 358,389,436 13,222,435 Other 50,405 0 50,405 0 ------------ --------------- ------------ ------------ Total Utility Plant and Other Investments 573,011,347 358,389,436 509,561,450 421,839,333 ------------ --------------- ------------ ------------ Current Assets: Cash and temporary cash investments 532,988 0 397,944 135,044 Accounts receivable - Net: Customers 25,730,121 0 24,293,499 1,436,622 Accrued unbilled revenue 9,157,587 0 9,157,587 0 Others 2,347,648 0 1,694,463 653,185 Accounts receivable - associated companies 25,861,102 42,162,493 5,331,027 62,692,568 Materials and supplies (at average cost): 0 0 0 Fuel 7,385,159 0 0 7,385,159 Plant materials and operating supplies 3,936,913 0 1,868,455 2,068,458 Other current assets 4,170,083 0 561,079 3,609,004 ------------ --------------- ------------ ------------ Total Current Assets 79,121,601 42,162,493 43,304,054 77,980,040 ------------ --------------- ------------ ------------ Deferred Debits: Unamortized debt expense 2,847,178 0 2,818,840 28,338 Unrecovered Regulatory Plant Costs (Note A) 10,100,000 0 0 10,100,000 Other deferred debits 74,118,188 0 29,319,798 44,798,390 ------------ --------------- ------------ ------------ Total Deferred Debits 87,065,366 0 32,138,638 54,926,728 ------------ --------------- ------------ ------------ Total assets $739,198,314 $400,551,929 $585,004,142 $554,746,101 ============ =============== ============ ============ ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
EASTERN EDISON COMPANY AND SUBSIDIARY CONSOLIDATING BALANCE SHEETS DECEMBER 31, 1995
Eastern Eastern Montaup Edison Edison Electric LIABILITIES Consolidated Eliminations Company Company ------------ --------------- ------------ ------------ Capitalization: Common equity $244,368,214 $184,719,706 $244,368,214 $184,719,706 Redeemable preferred stock $29,664,502 29,664,502 0 Redeemable preferred stock of subsidiaries - net 0 1,500,000 0 1,500,000 Preferred Stock Redemption Cost (3,446,743) (3,446,743) 0 Long-term debt - net 222,313,093 172,169,730 222,313,093 172,169,730 ------------ --------------- ------------ ------------ Total Capitalization 492,899,066 358,389,436 492,899,066 358,389,436 ------------ --------------- ------------ ------------ Current Liabilities: Current portion - Long Term Debt 7,000,000 0 7,000,000 0 Notes payable 4,158,000 0 4,158,000 0 Accounts payable 27,241,874 0 715,619 26,526,255 Accounts payable - associated companies 3,913,045 37,030,994 39,136,593 1,807,446 Customer deposits 1,103,531 0 1,103,531 0 Taxes accrued 3,218,803 0 1,409,110 1,809,693 Interest accrued 4,998,814 5,131,499 4,998,813 5,131,500 Other current liabilities 7,331,785 0 356,097 6,975,688 ------------ --------------- ------------ ------------ Total Current Liabilities 58,965,852 42,162,493 58,877,763 42,250,582 ------------ --------------- ------------ ------------ Deferred Credits: Unamortized investment credit 17,841,697 0 4,231,604 13,610,093 Other deferred credits 40,725,734 0 11,068,301 29,657,433 ------------ --------------- ------------ ------------ Total Deferred Credits 58,567,431 0 15,299,905 43,267,526 ------------ --------------- ------------ ------------ Accumulated deferred taxes 128,765,965 0 17,927,408 110,838,557 ------------ --------------- ------------ ------------ Commitments and contingencies (Note J) Total liabilities and capitalization $739,198,314 $400,551,929 $585,004,142 $554,746,101 ============ =============== ============ ============ ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
EASTERN EDISON COMPANY AND SUBSIDIARY CONSOLIDATING STATEMENTS OF CAPITALIZATION DECEMBER 31, 1995
Eastern Eastern Montaup Edison Edison Electric Consolidated Eliminations Company Company ------------ --------------- ------------ ------------ Common Equity: Common shares $72,283,925 $58,600,000 $72,283,925 $58,600,000 Other paid-in capital 47,249,633 29,528,000 47,249,633 29,528,000 Common share expense (43,911) 0 (43,911) 0 Retained earnings 124,878,567 96,591,706 124,878,567 96,591,706 ------------ --------------- ------------ ------------ Total Common Equity 244,368,214 184,719,706 244,368,214 184,719,706 ------------ --------------- ------------ ------------ Redeemable Preferred: 6.625%, $100 par value, 300,000 shares 30,000,000 0 30,000,000 0 Redeemable preferred stock of subsidiaries 0 1,500,000 0 1,500,000 Expense, net of premium (335,498) 0 (335,498) 0 Preferred stock redemption cost (3,446,743) 0 (3,446,743) 0 ------------ --------------- ------------ ------------ Total Redeemable 26,217,759 1,500,000 26,217,759 1,500,000 ------------ --------------- ------------ ------------ Long-Term Debt: First Mortgage and Collateral Trust Bonds: 5.875% due 1998 20,000,000 0 20,000,000 0 6.875% due 2003 40,000,000 0 40,000,000 0 8% due 2023 40,000,000 0 40,000,000 0 6.35% due 2003 8,000,000 0 8,000,000 0 4.875% due 1996 7,000,000 0 7,000,000 0 7.78% Secured medium-term notes due 2002 35,000,000 0 35,000,000 0 5.75% due 1998 40,000,000 0 40,000,000 0 Pollution Control Revenue Bonds: 0 0 0 0 5.875% due 2008 40,000,000 0 40,000,000 0 Debenture Bonds: 0 0 0 0 8% due 2000 0 8,500,000 0 8,500,000 8.25% due 2003 0 12,800,000 0 12,800,000 14% due 2005 0 26,000,000 0 26,000,000 10% due 2008 0 9,275,000 0 9,275,000 16.5% due 2010 0 19,000,000 0 19,000,000 12.375% due 2013 0 30,000,000 0 30,000,000 10.125% due 2008 0 36,594,730 0 36,594,730 9% due 2020 0 5,000,000 0 5,000,000 9.375% due 2020 0 25,000,000 0 25,000,000 Unamortized (Discount) - Net (686,907) 0 (686,907) 0 ------------ --------------- ------------ ------------ 229,313,093 172,169,730 229,313,093 172,169,730 Less portion due within one year 7,000,000 0 7,000,000 0 ------------ --------------- ------------ ------------ Total Long-Term Debt 222,313,093 172,169,730 222,313,093 172,169,730 ------------ --------------- ------------ ------------ Total Capitalization $492,899,066 $358,389,436 $492,899,066 $358,389,436 ============ =============== ============ ============ The accompanying notes are an integral part of the financial statements.
EASTERN EDISON COMPANY AND SUBSIDIARY CONSOLIDATING INCOME STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1995
Eastern Eastern Montaup Edison Edison Electric Consolidated Eliminations Company Company ------------ --------------- ------------ ------------ Operating Revenues $420,068,710 $195,678,623 $269,946,522 $345,800,811 Operating Expenses: Operation 298,007,975 $195,678,623 $226,630,590 $267,056,008 Maintenance 15,491,102 $5,262,851 $ 10,228,251 Voluntary Retirement Incentive 2,413,122 $1,521,199 $ 891,923 Depreciation and amortization 26,038,677 $9,697,362 $ 16,341,315 Taxes - Other than income 10,233,645 $4,370,034 $ 5,863,611 Income Taxes - Current (credit) 12,891,558 $8,661,245 $ 4,230,313 - Deferred (credit) 2,761,513 ($651,371) $ 3,412,884 ------------ --------------- ------------ ------------ Total Operating Expenses 367,837,592 195,678,623 255,491,910 308,024,305 ------------ --------------- ------------ ------------ Operating Income 52,231,118 0 14,454,612 37,776,506 ------------ --------------- ------------ ------------ Other Income and Deductions: Interest and dividend income 613,703 19,994,750 20,349,213 259,240 Equity in earnings of jointly-owned companies 1,646,357 19,697,611 19,697,611 1,646,357 Allowance for funds used during construction 473,402 39,508 433,894 Other (deductions) income - net (206,557) (233,411) 26,854 ------------ --------------- ------------ ------------ Total Other Income 2,526,905 39,692,361 39,852,921 2,366,345 ------------ --------------- ------------ ------------ Income Before Interest Charges 54,758,023 39,692,361 54,307,533 40,142,851 ------------ --------------- ------------ ------------ Interest Charges: Interest on long-term debt 18,277,727 19,994,750 18,277,727 19,994,750 Amortization of debt expense and premium 2,299,383 2,026,577 272,806 Other interest expense (principally 0 0 short-term notes) 1,241,495 644,802 596,693 Allowance for borrowed funds used during 0 0 construction - (credit) (503,283) (84,274) (419,009) ------------ --------------- ------------ ------------ Total Interest Charges 21,315,322 19,994,750 20,864,832 20,445,240 ------------ --------------- ------------ ------------ Income After Interest Charges 33,442,701 19,697,611 33,442,701 19,697,611 ------------ --------------- ------------ ------------ Preferred Dividends Requirement 1,987,500 0 1,987,500 0 ------------ --------------- ------------ ------------ Net Income $31,455,201 $19,697,611 $31,455,201 $19,697,611 ============ =============== ============ ============ Eastern Edison Common Share weighted average shares outstanding 2,891,357 Earnings per share $10.88 ============ ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
EASTERN EDISON COMPANY AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1995
Eastern Eastern Montaup Edison Edison Electric Consolidated Eliminations Company Company ------------ --------------- ------------ ------------ CASH FLOW FROM OPERATING ACTIVITIES: Net Income $33,442,701 $19,697,611 $33,442,701 $19,697,611 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation and Amortization 29,919,277 0 13,130,338 16,788,939 Amortization of nuclear fuel 3,646,532 0 0 3,646,532 Deferred taxes 2,694,288 0 (651,371) 3,345,659 Investment tax credit, net (942,228) 0 (314,076) (628,152) Allowance for other funds used during construction (473,402) 0 (39,508) (433,894) Other - Net 1,152,106 (1,541,711) (1,726,006) 1,336,401 Net Changes to Operating Assets and Liabilities: Accounts receivable (7,055,113) (1,580,340) 430,265 (9,065,718) Materials and supplies (1,678,331) 0 (591,621) (1,086,710) Accounts payable 827,288 1,580,340 335,411 2,072,217 Accrued taxes 1,807,596 0 684,063 1,123,533 Other - net (6,630,345) 0 (1,624,765) (5,005,580) ------------ --------------- ------------ ------------ Net Cash Provided from Operating Activities 56,710,369 18,155,900 43,075,431 31,790,838 ------------ --------------- ------------ ------------ CASH FLOW FROM INVESTING ACTIVITIES: Construction expenditures (23,422,997) 0 (8,760,826) (14,662,171) ------------ --------------- ------------ ------------ Net Cash Used in Investing Activities (23,422,997) 0 (8,760,826) (14,662,171) ------------ --------------- ------------ ------------ CASH FLOW FROM FINANCING ACTIVITIES: Issuances: Common shares/capital contribution 0 0 10,000,000 (10,000,000) Redemptions: Long-term debt (35,000,000) 0 (35,000,000) 0 Eastern Edison common share dividends paid (11,189,552) (17,767,400) (11,189,552) (17,767,400) Preferred dividends paid (1,987,500) (388,500) (1,987,500) (388,500) Net Increase in short-term debt 4,158,000 0 4,158,000 0 ------------ --------------- ------------ ------------ Net Cash (Used in) Financing Activities (44,019,052) (18,155,900) (34,019,052) (28,155,900) ------------ --------------- ------------ ------------ NET (DECREASE) INCREASE IN CASH (10,731,680) 0 295,553 (11,027,233) Cash and temporary cash investments at beginning of year 11,264,668 0 102,391 11,162,277 Cash and temporary cash investments ------------ --------------- ------------ ------------ at end of year $532,988 $0 $397,944 $135,044 ============ =============== ============ ============ Cash paid during the year for: Interest (Net of Amount Capitalized) $18,342,980 $19,994,750 $18,563,390 $19,774,340 Income Taxes $9,044,141 $7,227,833 $1,816,308 ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
EASTERN EDISON COMPANY AND SUBSIDIARY CONSOLIDATING STATEMENTS OF RETAINED EARNINGS AND OTHER PAID-IN CAPITAL DECEMBER 31, 1995
Eastern Eastern Montaup Edison Edison Electric Consolidated Eliminations Company Company ------------ --------------- ------------ ------------ Balance of retained earnings at begin. of year $105,574,199 $95,049,995 $105,574,199 $95,049,995 Additions: Net Income 33,442,701 19,697,611 33,442,701 19,697,611 ------------ --------------- ------------ ------------ Total 139,016,900 114,747,606 139,016,900 114,747,606 ------------ --------------- ------------ ------------ Deductions: Dividends: Preferred 1,987,500 388,500 1,987,500 388,500 Common 11,189,552 17,767,400 11,189,552 17,767,400 ------------ --------------- ------------ ------------ Total Dividends 13,177,052 18,155,900 13,177,052 18,155,900 Other 961,281 0 961,281 0 ------------ --------------- ------------ ------------ Total Deductions 14,138,333 18,155,900 14,138,333 18,155,900 ------------ --------------- ------------ ------------ Balance of retained earnings at end of period $124,878,567 $96,591,706 $124,878,567 $96,591,706 ============ =============== ============ ============ ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEETS DECEMBER 31, 1995
ASSETS EUA EUA EUA EUA EUA EUA Cogenex Cogenex Nova Day NEM Cogenex Consolidated Eliminations (Division) (Division) (Division) Inc. Canada Utility Plant and Other Investments: Utility plant in service $ $ $ $ $ $ $ Less accumulated provision for depreciation and amortization 0 Net utility plant in service 0 Construction work in progress 0 Net utility plant 0 0 Non-utility property 108,640,560 54,647,946 1,307,137 1,823,366 8,697,105 Less accumulated provision for depreciation 30,033,093 19,681,378 780,772 721,321 2,441,394 Net non-utility property 78,607,467 34,966,568 526,365 1,102,045 6,255,711 0 Investments in subsidiaries (at equity) 1,000 61,025,800 61,026,800 0 0 Excess of carrying values of investments in subsidiaries 0 Other 66,885,178 55,992,815 (186,000) 0 308,341 4,112,495 Total Utility Plant and Other Inv. 145,493,645 61,025,800 151,986,183 340,365 1,102,045 6,564,052 4,112,495 Current Assets: Cash and temporary cash investments 1,503,436 508,568 (215,160) 65,569 993 (37,663) Notes and Leases receivable 17,762,795 6,445,502 21,283,134 95,766 47,601 225,058 Accounts receivable - Net: Customers 19,133,906 7,601,621 4,198,754 1,396,728 524,274 13,901 Accrued unbilled revenue 0 Others 3,102,864 697,201 3,577,855 46,723 116,432 (13,475) 101 Accounts receivable - associated companies 24,660 4,002,107 3,485,478 360,276 161,534 Materials and supplies (at average cost): Fuel 0 Plant materials and operating supplies 3,345,963 84,655 2,592,939 572,230 Other current assets 5,690,165 4,155,006 18,947 28,376 23,570 Total Current Assets 50,563,789 11,144,810 40,696,317 7,098,245 2,388,470 511,792 224,967 Deferred Debits: Unamortized debt expense 710,083 710,083 Unrecovered regulatory plant costs (Note A) 0 Other deferred debits 2,347,610 933,888 (51,586) 0 1,360,250 Total Deferred Debits 3,057,693 1,643,971 (51,586) 0 1,360,250 0 Total Assets $199,115,127 $72,170,610 $ 7,387,024 $3,490,515 $8,436,094 $4,337,462 $1,642,225 The accompanying notes are an integral part of the financial statements.
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEETS (continued) DECEMBER 31, 1995 EUA EUA EUA ASSETS Citizens Highland MUPA Corporation Corporation (Partnership) (Partnership) Utility Plant and Other Investments: Utility plant in service $ $ $ Less accumulated provision for depreciation and amortization Net utility plant in service Construction work in progress Net utility plant 0 0 0 Non-utility property 1,175,336 1,656,068 0 Less accumulated provision for depreciation 25,462 302,228 0 Net non-utility property 1,149,874 1,353,840 0 Investments in subsidiaries (at equity) Excess of carrying values of investments in subsidiaries Other 67,508 3,761,216 1,175 Total Utility Plant and Other Investments 1,217,382 5,115,058 1,175 Current Assets: Cash and temporary cash investments (10,281) 150,287 1,000 Notes and Leases receivable 10,954 894,637 Accounts receivable - Net: Customers 344,360 483,009 303,646 Accrued unbilled revenue Others 9,869 560 0 Accounts receivable - associated companies 2,814 16,665 0 Materials and supplies (at average cost): Fuel Plant materials and operating supplies 96,139 0 Other current assets 229 139,255 0 Total Current Assets 346,991 896,869 1,199,283 Deferred Debits: Unamortized debt expense Unrecovered regulatory plant costs (Note A) Other deferred debits 77,852 27,206 0 Total Deferred Debits 77,852 27,206 0 Total Assets $1,642,225 $6,039,133 $ 1,200,458 The accompanying notes are an integral part of the financial statements.
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEETS (continued) DECEMBER 31, 1995 ASSETS EUA EUA EUA EUA WestCoast FRC II EC&S I EC&S II (Partnership) (Partnership) (Partnership) (Partnership) Utility Plant and Other Investments: Utility plant in service $ $ $ $ Less accumulated provision for depreciation and amortization Net utility plant in service Construction work in progress Net utility plant 0 0 0 0 Non-utility property 14,646,599 77,490 8,651,750 15,957,763 Less accumulated provision for depreciation 1,846,797 66,185 924,514 3,243,042 Net non-utility property 12,799,802 11,305 7,727,236 12,714,721 Investments in subsidiaries (at equity) Excess of carrying values of investments in subsidiaries Other 134,066 0 289,002 2,404,558 Total Utility Plant and Other Investments 12,933,868 11,305 8,016,238 15,119,279 Current Assets: Cash and temporary cash investments 478,954 14,243 119,347 427,579 Notes and Leases receivable 465,368 0 0 1,185,779 Accounts receivable - Net: Customers 705,323 1,345,324 366,497 1,850,469 Accrued unbilled revenue Others 62,000 0 0 0 Accounts receivable - associated companies 0 0 0 0 Materials and supplies (at average cost): Fuel Plant materials and operating supplies 0 0 0 0 Other current assets 6,664 0 80,591 1,237,527 Total Current Assets 1,718,309 1,359,567 566,435 4,701,354 Deferred Debits: Unamortized debt expense Unrecovered regulatory plant costs (Note A) Other deferred debits 0 0 0 0 Total Deferred Debits 0 0 0 0 Total Assets $14,652,177 $1,370,872 $8,582,673 $19,820,633 The accompanying notes are an integral part of the financial statements.
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEETS (continued) DECEMBER 31, 1995 LIABILITIES EUA EUA EUA EUA EUA EUA Cogenex Cogenex Nova Day NEM Cogenex Consolidated Eliminations Corporation (Division) (Division) Inc. Canada Capitalization: Common equity $52,584,275 $16,612,662 $ 49,633,099 $2,118,076 $ 921,801 $11,940,683 $ 95,931 Non-redeemable preferred stock of subsidiaries 75 Redeemable preferred stock of subsidiaries - net 0 Preferred stock redemption cost 0 Partnerships' capital 0 14,268,243 Long-term debt - net 112,500,000 23,626,913 112,500,000 0 0 Total Capitalization 165,084,350 54,507,818 162,133,818 2,118,076 921,801 11,940,683 95,931 Current Liabilities: Preferred stock sinking fund requirements 0 Long-term debt due within one year 6,700,000 6,700,000 0 0 Notes payable 14,366,231 11,134,358 9,564,000 2,431,446 1,867,073 4,177,644 Accounts payable 6,130,039 2,327,380 4,797,367 706,123 327,187 Accounts payable - associated companies 644,655 2,356,083 1,161,985 625,334 120,038 4,741 Customer deposits 520,150 0 0 0 0 Taxes accrued 122,225 14,335 35,764 12,451 63,887 Interest accrued 2,564,262 1,434,023 2,564,262 1,258,513 175,510 Dividends declared 0 212,000 212,000 Other current liabilities 7,009,094 (9,997) 6,637,255 32,179 0 Total Current Liabilities 38,056,656 17,453,847 31,439,204 5,089,359 2,502,259 216,741 4,241,531 Deferred Credits: Unamortized investment credit 0 Other deferred credits 2,338,529 208,945 1,688,353 179,589 66,455 609,217 Total Deferred Credits 2,338,529 208,945 1,688,353 179,589 66,455 609,217 0 Accumulated deferred taxes (6,364,408) (934,185) 0 0 (4,330,547) Commitments and contingencies (Note J) Total Liabilities and Capitalization $199,115,127 $72,170,610 $194,326,471 $7,387,024 $3,490,515 $8,436,094 $4,337,462 ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEETS (continued) DECEMBER 31, 1995 LIABILITIES EUA EUA EUA Citizens Highland MUPA Corporation Corporation (Partnership) Capitalization: Common equity ($17,680) $4,505,027 $0 Non-redeemable preferred stock of subsidiaries 75 Redeemable preferred stock of subsidiaries - net 0 Preferred stock redemption cost Partnerships' capital (461,205) Long-term debt - net 0 1,118,685 Total Capitalization (17,605) 4,505,027 657,480 Current Liabilities: Preferred stock sinking fund requirements Long-term debt due within one year Notes payable 1,220,763 1,550,807 0 Accounts payable 251,479 47,883 616,229 Accounts payable - associated companies 82,184 1,006,456 0 Customer deposits 0 Taxes accrued 382 (4,594) 0 Interest accrued 0 0 Dividends declared Other current liabilities 101,162 33,230 (73,251) Total Current Liabilities 1,655,970 2,633,782 542,978 Deferred Credits: Unamortized investment credit Other deferred credits 3,860 0 0 Total Deferred Credits 3,860 0 0 Accumulated deferred taxes (1,099,676) 0 Commitments and contingencies (Note J) Total Liabilities and Capitalization $1,642,225 $6,039,133 $1,200,458 ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING BALANCE SHEETS (continued) DECEMBER 31, 1995 EUA EUA EUA EUA LIABILITIES WestCoast FRC II EC&S I EC&S II (Partnership) (Partnership) (Partnership) (Partnership) Capitalization: Common equity $0 $0 $0 $0 Non-redeemable preferred stock of subsidiaries Redeemable preferred stock of subsidiaries - net Preferred stock redemption cost Partnerships' capital 3,872,673 661,984 3,017,730 7,177,061 Long-term debt - net 9,854,817 0 3,087,853 9,565,558 Total Capitalization 13,727,490 661,984 6,105,583 16,742,619 Current Liabilities: Preferred stock sinking fund requirements Long-term debt due within one year Notes payable 0 0 2,271,179 2,417,677 Accounts payable 577,286 644,277 152,073 337,515 Accounts payable - associated companies 0 0 0 0 Customer deposits 360,717 159,433 Taxes accrued 0 0 0 0 Interest accrued 0 0 0 0 Dividends declared Other current liabilities (13,316) 64,611 53,838 163,389 Total Current Liabilities 924,687 708,888 2,477,090 3,078,014 Deferred Credits: Unamortized investment credit Other deferred credits 0 0 0 0 Total Deferred Credits 0 0 0 0 Accumulated deferred taxes 0 0 0 0 Commitments and contingencies (Note J) Total Liabilities and Capitalization $14,652,177 $1,370,872 $8,582,673 $19,820,633 ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF CAPITALIZATION DECEMBER 31, 1995 EUA EUA EUA EUA EUA EUA EUA Cogenex Cogenex Nova Day NEM Cogenex Citizens Consolidated Eliminations Corporation (Division) (Division) Inc. Canada Corporation Common Equity: Common Shares, $.01 par value $100 $1,400 $100 $ 1,100 $ 100 $ 100 Other Paid-In Capital 45,787,287 15,866,802 44,689,755 0 1,097,532 11,502,050 0 Retained Earnings 6,796,888 15,012,704 4,943,244 2,118,075 (175,731) 437,533 95,831 (17,780) Total Common Equity 52,584,275 30,880,906 49,633,099 2,118,075 921,801 11,940,683 95,931 (17,680) Non-Redeemable Preferred: $.01 par value, 7,500 shares 75 75 Total Non-Redeemable 75 0 0 0 0 0 75 Long-Term Debt: Unsecured Notes: 7.00% due 2000 50,000,000 50,000,000 7.22% due 1997 15,000,000 15,000,000 9.6% due 2001 19,200,000 19,200,000 10.56% due 2005 35,000,000 35,000,000 119,200,000 0 119,200,000 0 0 0 0 0 Less portion due within one year 6,700,000 6,700,000 Total Long-Term Debt 112,500,000 0 112,500,000 0 0 0 0 0 Total Capitalization $165,084,350 $30,880,906 $162,133,099 $2,118,075 $ 921,801 $11,940,683 $95,931 ($17,605) The Preferred Stock shall be entitled to an annual dividend per share at a rate equal to 33% of the net income of Citizens Conservation Services divided by 7,500. The accompanying notes are an integral part of the financial statements.
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF CAPITALIZATION (continued) DECEMBER 31, 1995 EUA EUA EUA EUA EUA EUA Highland MUPA West Coast FRC II EC&S I EC &S II Corporation (Partnership) (Partnership) (Partnership) (Partnership) (Partnerships) Common Equity: Common Shares, $.01 par value $100 Other Paid-In Capital 4,364,752 0 0 0 0 0 Retained Earnings 140,176 (461,205) 3,872,674 661,984 3,017,730 7,177,061 Total Common Equity 4,505,028 (461,205) 3,872,674 661,984 3,017,730 7,177,061 Non-Redeemable Preferred: $.01 par value, 7,500 shares Total Non-Redeemable 0 0 0 0 0 0 Long-Term Debt: Unsecured Notes: 7.00% due 2000 7.22% due 1997 9.6% due 2001 10.56% due 2005 0 0 0 0 0 0 Less portion due within one year Total Long-Term Debt 0 0 0 0 0 0 Total Capitalization $4,505,028 ($461,205) $3,872,674 $661,984 $3,017,730 $7,177,061 The Preferred Stock shall be entitled to an annual dividend per share at a rate equal to 33% of the net income of Citizens Conservation Services divided by 7,500. The accompanying notes are an integral part of the financial statements.
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING INCOME STATEMENTS FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1995 EUA EUA EUA EUA EUA EUA Cogenex Cogenex Nova Day NEM Cogenex Consolidated Eliminations Corporation (Division) (Division) Inc. Canada Operating Revenues $79,499,211 $ 3,644,467 $36,170,531 $14,606,786 $6,364,241 $3,385,557 $ Operating Expenses: Operation 56,899,154 4,432,753 27,932,486 14,365,228 6,194,035 29,780 1,751 Maintenance 2,463,453 (344) 849,300 16,232 0 2,108 Voluntary Retirement Incentive 180,106 180,106 Depreciation and amortization 10,812,549 114,715 6,096,060 184,067 58,271 696,650 Taxes - Other than income 756,057 1,477 266,564 264,696 195,876 315 Income Taxes - Current (credit) 624,359 (660,799) 0 0 1,095,629 64,174 - Deferred (credit) (560,145) (245,479) 0 0 (314,666) Total Operating Expenses 71,175,533 4,548,601 34,418,238 14,830,223 6,448,182 1,509,816 65,925 Operating Income 8,323,678 (904,134) 1,752,293 (223,437) (83,941) 1,875,741 (65,925) Other Income and Deductions: Interest and dividend income 5,748,855 4,931,178 10,309,121 11,347 0 723 314,786 Equity in earnings of jointly- owned companies 0 (5,157,958) (5,157,958) 0 0 Allowance for other funds used during construction 129 129 Disposal of cogeneration operation (18,085,966) (10,035,386) Federal and State taxes on disposal of cogeneration operation 7,587,980 7,587,980 Other (deductions) income - net (1,303,351) 959,397 (462,263) 96,368 0 13,449 Total Other Income (6,052,353) 732,617 2,241,623 107,715 0 723 328,235 Income (Loss) Before Interest Charges 2,271,325 (171,517) 3,993,916 (115,722) (83,941) 1,876,464 262,310 Interest Charges: Interest on long-term debt 10,186,204 3,193,248 10,186,204 0 0 Amortization of debt expense and premium 151,670 151,670 0 0 Other interest expense (principally 0 short-term notes) 1,928,042 707,762 1,742,270 549,593 98,281 166,168 Allowance for borrowed funds used during construction - (credit) (2,090,174) 1,030,925 (1,029,348) 0 0 Total Interest Charges 10,175,742 4,931,935 11,050,796 549,593 98,281 0 166,168 Net Income (Loss) before preferred return (7,904,417) (5,103,452) (7,056,880) (665,315) (182,222) 1,876,464 96,142 Preferred Return Requirement 0 1,563,565 Net Income (Loss) ($7,904,417) ($6,667,017) ($ 7,056,880) ($665,315) ($182,222) $1,876,464 $ 96,142 The accompanying notes are an integral part of the financial statements.
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING INCOME STATEMENTS (continued) FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1995 EUA EUA EUA EUA EUA EUA EUA Citizens Highland MUPA WestCoast FRC II EC&S I EC&S II Corp. Corp. (Partnership) (Partnership) (Partnership) (Partnership) (Partnership) Operating Revenues $1,481,881 $2,290,498 $598,019 $3,928,960 $3,914,654 $2,146,963 $8,255,588 Operating Expenses: Operation 1,461,372 1,791,401 401,619 3,125,038 3,030,384 441,040 2,557,773 Maintenance 1,376 5,104 176,823 291,929 693,722 132,442 294,073 Voluntary Retirement Incentive Depreciation and amortization 12,474 211,527 136,934 796,583 672,986 393,057 1,668,655 Taxes - Other than income 21,575 8,508 0 0 0 0 0 Income Taxes - Current (credit) (8,869) 134,224 0 0 0 0 0 - Deferred (credit) Total Operating Expenses 1,487,928 2,150,764 715,376 4,213,550 4,397,092 966,539 4,520,501 Operating Income (6,047) 139,734 (117,357) (284,590) (482,438) 1,180,424 3,735,087 Other Income and Deductions: Interest and dividend income 205 29,602 0 9,149 0 0 5,100 Equity in earnings of jointly- owned companies Allowance for other funds used during construction Disposal of cogeneration operation (552,275) (525,175) (6,973,130) Federal and State taxes on disposal cogeneration operation Other (deductions) income - net 6,297 2,195 0 0 Total Other Income 6,502 31,797 (552,275) (516,026) (6,973,130) 0 5,100 Income (Loss) Before Interest Charges 455 171,531 (669,632) (800,616) (7,455,568) 1,180,424 3,740,187 Interest Charges: Interest on long-term debt 285,775 762,604 817,352 346,011 981,506 Amortization of debt expense and premium Other interest expense (principally short-term notes) 26,895 52,597 0 0 0 0 0 Allowance for borrowed funds used during construction - (credit) (8,660) (21,241) 0 0 0 0 0 Total Interest Charges 18,235 31,356 285,775 762,604 817,352 346,011 981,506 Net Income (Loss) before preferred return (17,780) 140,175 (955,407) (1,563,220) (8,272,920) 834,413 2,758,681 Preferred Return Requirement 329,529 405,288 828,748 Net Income (Loss) ($17,780) $140,175 ($955,407) ($1,892,749) ($8,272,920) $429,125 $1,929,933 The accompanying notes are an integral part of the financial statements.
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1995 EUA EUA EUA EUA EUA EUA Cogenex Cogenex Nova Day NEM Cogenex Consolidated Eliminations Corporation (Division) (Division) Inc. Canada CASH FLOW FROM OPERATING ACTIVITIES: Net Income (Loss) ($7,904,417) ($6,667,017) ($7,056,880) ($665,316) ($182,222) $1,876,464 $ 96,142 Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: Depreciation and amortization 11,594,142 6,696,990 184,067 58,271 780,964 Deferred taxes (6,463,836) (6,283,394) (314,666) Non-cash (Gains)/Exp. on Sales of Investment in Energy Savings Projects (1,263,914) (3,471,883) Loss on disposition of cog. 18,085,996 171,270 Collections and sales of project notes and leases receivable 17,747,698 17,101,069 Equity earnings 0 5,157,958 5,157,958 Other - net 3,477,891 (536,390) 2,782,898 154,525 (161,414) (326,631) (311) Net Changes to Working Capital: Accounts receivable 2,463,417 (1,534,877 155,925 1,118,637 (57,052) 181,667 (13,902) Materials and supplies 536,627 (72,908) 195,633 450,023 (259,947) Accounts payable 323,645 (2,768,919) 1,629,966 (465,815) (39,334) 2,100 Accrued taxes (3,923) 0 (30,922) (45,127) 12,451 63,887 Other - net (2,677,228) (910,286) (2,109,408) 504,581 71,404 (23,570) Net Cash Provided from (Used in) Operating Activities 35,916,098 (7,332,439) 14,939,222 1,235,575 (557,843) 2,199,898 122,246 CASH FLOW FROM INVESTING ACTIVITIES: Expenditures for investments in energy savings projects (44,172,122) (76,837) (25,992,067) (170,254) (33,734) (3,182) (4,950,000) Collections on notes and leases rec. 3,125,256 1,389,004 4,234 16,395 612,447 Proceeds from sale of cogeneration operations 11,500,650 11,500,650 Investments in subsidiaries 0 12,187,646 12,187,646 Net Cash Provided from (Used in) Investing Activities (29,546,216) 12,110,809 (914,767) (166,020) (17,339) (3,182) (4,337,553) CASH FLOW FROM FINANCING ACTIVITIES: Issuances: Common shares/capital contribution 8,059,000 200 8,059,000 Long-term debt 0 2,350,354 Redemptions: Long-term debt (800,000) (20,209,734) (800,000) Premium on reacquisition & financing expenses 0 Dividends declared 0 (2,488,000) (2,488,000) Partner's contribution 0 18,587,648 Net increase (decrease) in short-term debt (17,113,770) (3,018,838) (21,916,000) (1,304,554) 480,000 4,177,644 Net Cash Provided from (Used in) (9,854,770) (4,778,370) (14,657,000) (1,304,554) 480,000 (2,488,000) 4,177,644 NET (DECREASE) INCREASE IN CASH (3,484,888) 0 (632,545) (234,999) (95,182) (291,284) (37,663) Cash and temp. cash investments at beginning of year 4,988,324 1 1,141,115 19,839 160,750 292,277 0 Cash and temporary cash investments at end of year $1,503,436 $1 $508,570 ($215,160) $65,568 $993 ($37,663) Cash paid during the year for: Interest (net of amounts capitalized) $9,735,901 $9,684,582 $39,717 Income Taxes $657,296 ($393,217) $1,050,513 Con. of investments in energy savings projects to notes and leases receivable $19,324,256 $15,724,121 ( ) Denotes contra The accompanying notes are an integral part of the financial statements.
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF CASH FLOWS (continued) FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1995 EUA EUA EUA Citizens Highland MUPA Corporation Corporation (Partnership) CASH FLOW FROM OPERATING ACTIVITIES: Net Income (Loss) ($ 17,780) $140,176 ($955,407) Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities Depreciation and amortization 30,279 169,506 136,934 Deferred taxes 134,224 Non-cash (Gains)/Expenses on Sales of Investments in Energy Savings Projects (237,414) Loss on disposition of cogeneration projects 1,465,699 Collections and sales of project notes and leases receivable 22,120 Equity earnings Other - net 46,189 (49,552) Net Changes to Working Capital: Accounts receivable (357,043) (500,234) (55,671) Materials and supplies (96,139) Accounts payable 333,663 1,054,338 (501,756) Accrued taxes 382 (4,594) Other - net 100,933 26,784 (78,924) Net Cash Provided from (Used in) Operating Activities 136,623 659,215 10,875 CASH FLOW FROM INVESTING ACTIVITIES: Expenditures for investments in energy savings projects (1,367,767) (2,059,835) (135,495) Collections on notes and leases receivable 698,228 Proceeds from sale of cogeneration Investments in subsidiaries Net Cash Provided from (Used in) Investing Activities (1,367,767) (2,059,835) 562,733 CASH FLOW FROM FINANCING ACTIVITIES: Issuances: Common shares/capital contribution 100 100 Long-term debt Redemptions: Long-term debt (2,493,719 Premium on reacquisition and financing expenses Dividends declared Partner's contribution 2,353,613 Net increase (decrease) in short-term debt 1,220,763 1,550,807 (484,947) Net Cash Provided from (Used in) Financing Activities 1,220,863 1,550,907 (625,053) NET (DECREASE) INCREASE IN CASH (10,281) 150,287 (51,445) Cash and temporary cash investments at beginning of yr. 52,445 Cash and temporary cash investments at end of year ($10,281) $150,287 $1,000 Cash paid during the year for: Interest (net of amounts capitalized) $11,602 Income Taxes Conversion of investments in energy savings to notes and leases receivable $877,399 ( ) Denotes contra
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF CASH FLOWS (continued) FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1995 EUA EUA EUA EUA WestCoast FRC II EC&S I EC&S II (Partnership) (Partnership) (Partnership) (Partnership) CASH FLOW FROM OPERATING ACTIVITIES: Net Income (Loss) ($1,892,749) ($8,272,920) $429,125 $1,929,933 Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities Depreciation and amortization 802,376 673,043 393,056 1,668,656 Deferred taxes Non-cash (Gains)/Expenses on Sales of Investments in Energy Savings Projects 3,010,274 42,492 (607,383) Loss on disposition of cogeneration projects 1,442,051 15,006,976 Collections and sales of project notes and leases rec. 204,865 13,308 498 405,838 Equity earnings Other - net 495,797 Net Changes to Working Capital: Accounts receivable 371,156 (214,895) 131,277 168,675 Materials and supplies 174,149 Accounts payable (1,908,072) (2,236,701) 37,520 (351,183) Accrued taxes Other - net (980,397) 61,064 1,289 (1,161,270) Net Cash Provided from (Used in) Operating Activities 1,545,301 5,204,024 1,035,257 2,053,266 CASH FLOW FROM INVESTING ACTIVITIES: Expenditures for investments in energy savings project (4,213,717) (1,159,191) (785,683) (3,378,034) Collections on notes and leases receivable 245,448 159,500 Proceeds from sale of cogeneration Investments in subsidiaries Net Cash Provided from (Used in) Investing Activities (3,968,269) (999,691) (785,683) (3,378,034) CASH FLOW FROM FINANCING ACTIVITIES: Issuances: Common shares/capital contribution Long-term debt 2,350,354 Redemptions: Long-term debt (4,307,072) (13,202,737) (206,206) Premium on reacquisition and financing expenses Dividends declared Partner's contribution 5,310,927 9,712,317 104,214 1,106,577 Net increase (decrease) in short-term debt (816,348) (177,408) (2,862,565) Net Cash Provided from (Used in) Financing Activities 1,003,855 (4,306,768 (279,400) 594,366 NET (DECREASE) INCREASE IN CASH (1,419,113) (102,435) (29,826) (730,402) Cash and temporary cash investments at beginning of yr. 1,898,067 116,678 149,173 1,157,981 Cash and temporary cash investments at end of year $478,954 $14,243 $119,347 $427,579 Cash paid during the year for: Interest (net of amounts capitalized) Income Taxes Conversion of investments in energy savings to notes and leases receivable $142,027 $2,580,709 ( ) Denotes contra
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF RETAINED EARNINGS AND OTHER PAID-IN CAPITAL DECEMBER 31, 1995 EUA EUA EUA EUA EUA EUA Cogenex Cogenex Nova Day NEM Cogenex Consolidated Elimination Corp. (Division) (Division) Inc. Canada Balance of retained earnings at beginning of yr. $14,701,305 $4,558,613 $12,000,124 $2,783,391 $ 6,491 $1,261,069 Additions: Net Income (Loss) (7,904,417) (6,667,017) (7,056,880) (665,316) (182,222) 1,876,464 96,142 Partners Capital contribution 0 31,303,354 Other additions 0 0 Total (12,463,030) 29,194,950 (7,056,880) (665,316) (182,222) 1,876,464 96,142 Deductions: Dividends: 0 Common - subsidiaries 0 2,700,000 2,700,000 Partners withdrawals 0 11,481,935 Other deductions 0 311 311 Total 0 14,182,246 0 0 0 2,700,000 311 Balance of retained earnings at end of period 6,796,888 15,012,704 4,943,244 2,118,075 (175,731) 437,533 95,831 Other Paid-In Capital at beginning of year 33,528,598 15,866,802 32,431,066 1,097,532 11,502,050 0 Additions: Capital Contribution - EUA 8,058,689 8,058,689 Highland Acquisition 4,200,000 4,200,000 Total (3,608,113) 15,866,802 12,258,689 0 0 0 0 Deductions: 0 Total 0 Other Paid-In Capital at end of period $45,787,287 $15,866,802 $44,689,755 $ 0 $1,097,532 $11,502,050 $ 0 ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF RETAINED EARNINGS AND OTHER PAID-IN CAPITAL (continued) DECEMBER 31, 1995 EUA EUA EUA EUA Citizens Highland MUPA West Coast Corp. Corp. (Partnership) (Partnership) Balance of retained earnings at beginning of yr. $ 0 $ 0 ($1,859,411) ($ 779,276) Additions: Net Income (Loss) (17,780) 140,176 (955,407) (1,892,749) Partners Capital contribution 3,108,644 10,021,108 Other additions Total (17,780) 140,176 2,153,237 8,128,359 Deductions: Dividends: Common - subsidiaries Partners withdrawals 755,031 3,476,409 Other deductions Total 0 0 755,031 3,476,409 Balance of retained earnings at end of period (17,780) 140,176 (461,205) 3,872,674 Other Paid-In Capital at beginning of yr. 4,364,752 Additions: Capital Contribution - EUA Highland Acquisition Total 0 0 0 0 Deductions: Total Other Paid-In Capital at end of period $0 $4,364,752 $0 $0 ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF RETAINED EARNINGS AND OTHER PAID-IN CAPITAL (continued) DECEMBER 31, 1995 EUA EUA EUA FRC II EC&S I EC &S II (Partnership) (Partnership) (Partnerships) Balance of retained earnings at beginning of yr ($777,412) $2,484,391 $4,140,551 Additions: Net Income (Loss) (8,272,920) 429,125 1,929,933 Partners Capital contribution 16,562,811 104,214 1,506,577 Other additions Total 8,289,891 533,339 3,436,510 Deductions: Dividends: Common - subsidiaries Partners withdrawals 6,850,495 400,000 Other deductions Total 6,850,495 0 400,000 Balance of retained earnings at end of period 661,984 3,017,730 7,177,061 Other Paid-In Capital at beginning of yr. Additions: Capital Contribution - EUA Highland Acquisition Total 0 0 0 Deductions: Total Other Paid-In Capital at end of period $0 $0 $0 ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
EUA ENERGY INVESTMENT AND SUBSIDIARY CONSOLIDATING BALANCE SHEETS DECEMBER 31, 1995
EUA EUA Eastern Energy Energy EUA Unicord EUA ASSETS Consolidated Eliminations Corporation Transcapacity Corporation Bioten ------------ --------------- ------------ --------------- ------------ --------- Non-utility plant and other investments: Non-utility property $1,377,675 $0 $0 $1,377,675 $0 $0 Less accumulated provision for depreciation 391,291 0 0 391,291 0 0 ------------ --------------- ------------ --------------- ------------ --------- Net non-utility property 986,384 0 0 986,384 0 0 Investments in subsidiaries (at equity) 2,653,222 (3,519,463) (3,182,129) 0 317,539 1,998,349 Other investments & notes receivable 177,382 0 0 16,367 0 161,015 ------------ --------------- ------------ --------------- ------------ --------- Total Utility Plant and Other Investments 3,816,988 (3,519,463) (3,182,129) 1,002,751 317,539 2,159,364 ------------ --------------- ------------ --------------- ------------ --------- Current Assets: Cash and temporary cash investments 468,363 0 5,822 462,541 0 0 Notes receivable 900,451 9,989,735 9,989,735 0 0 900,451 Accounts receivable - Net 1,378,932 0 89,207 1,177,429 456 111,840 Accounts receivable - associated companies 0 274,894 273,708 0 1,186 0 Other current assets 31,940 0 4,162 27,778 0 0 ------------ --------------- ------------ --------------- ------------ --------- Total Current Assets 2,779,686 10,264,629 10,362,634 1,667,748 1,642 1,012,291 ------------ --------------- ------------ --------------- ------------ --------- Deferred Debits: Other deferred debits 109,401 0 96,486 12,915 0 0 ------------ --------------- ------------ --------------- ------------ --------- Total Deferred Debits 109,401 0 96,486 12,915 0 0 ------------ --------------- ------------ --------------- ------------ --------- Total assets $6,706,075 $6,745,166 $7,276,991 $2,683,414 $319,181 $3,171,655 ============ =============== ============ =============== ============ ========= ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
EUA ENERGY INVESTMENT AND SUBSIDIARY CONSOLIDATING BALANCE SHEETS DECEMBER 31, 1995
EUA EUA Eastern Energy Energy EUA Unicord EUA LIABILITIES Consolidated Eliminations Corporation Transcapacity Corporation Bioten ------------ --------------- ------------ --------------- ------------ --------- Capitalization: Common equity ($9,050,831) ($3,519,464) ($9,050,831) ($1,471,180) ($1,840,592) ($207,692 ------------ --------------- ------------ --------------- ------------ --------- Total Capitalization (9,050,831) (3,519,464) (9,050,831) (1,471,180) (1,840,592) (207,692) ------------ --------------- ------------ --------------- ------------ --------- Current Liabilities: Notes Payable 16,198,830 9,989,735 16,143,756 4,599,262 2,245,096 3,200,451 Accounts payable 68,568 0 6,221 62,347 0 0 Accounts payable - associated companies 47,855 201,799 44,508 24,130 2,120 178,896 Taxes accrued 0 0 0 0 0 0 Interest accrued 1,677,662 73,096 1,677,663 52,405 20,690 0 Other current liabilities 107,428 0 0 107,428 0 0 ------------ --------------- ------------ --------------- ------------ --------- Total Current Liabilities 18,100,343 10,264,630 17,872,148 4,845,572 2,267,906 3,379,347 ------------ --------------- ------------ --------------- ------------ --------- Deferred Credits: Minority Interest (Loss) (1,156,669) 0 0 (1,156,669) 0 0 ------------ --------------- ------------ --------------- ------------ --------- Total Deferred Credits (1,156,669) 0 0 (1,156,669) 0 0 ------------ --------------- ------------ --------------- ------------ --------- Accumulated deferred taxes (1,186,768) 0 (1,544,326) 465,691 (108,133) 0 ------------ --------------- ------------ --------------- ------------ --------- Commitments and contingencies (Note J) Total liabilities and capitalization $6,706,075 $6,745,166 $7,276,991 $2,683,414 $319,181 $3,171,655 ============ =============== ============ =============== ============ ========= ( ) Denotes Contra
EUA ENERGY INVESTMENT AND SUBSIDIARY CONSOLIDATING STATEMENTS OF CAPITALIZATION DECEMBER 31, 1995
EUA EUA Eastern Energy Energy EUA Unicord EUA Consolidated Eliminations Corporation Transcapacity Corporation Bioten ------------ --------------- ------------ --------------- ------------ --------- Common Equity: Common shares $1 $21 $1 $10 $10 $1 Other paid-in capital 999 1,001,089 999 1,000,090 990 9 Retained earnings (9,051,831) (4,520,574) (9,051,831) (2,471,280) (1,841,592) (207,702) ------------ --------------- ------------ --------------- ------------ --------- Total Common Equity (9,050,831) (3,519,464) (9,050,831) (1,471,180) (1,840,592) (207,692) ------------ --------------- ------------ --------------- ------------ --------- Total Capitalization ($9,050,831) ($3,519,464) ($9,050,831) ($1,471,180) ($1,840,592) ($207,692 ============ =============== ============ =============== ============ ========= The accompanying notes are an integral part of the financial statements.
EUA ENERGY INVESTMENT AND SUBSIDIARY CONSOLIDATING INCOME STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1995
EUA EUA Eastern Energy Energy EUA Unicord EUA Consolidated Eliminations Corporation Transcapacity Corporation Bioten ------------ --------------- ------------ --------------- ------------ --------- Operating Expenses: Operation $4,333,573 $0 $1,293,109 $3,040,464 $0 $0 Maintenance 715 0 715 0 0 0 Voluntary Retirement Incentive 10,517 0 10,517 0 0 0 Depreciation and amortization 314,253 0 5,101 291,262 0 17,890 Taxes - Other than income 15,687 0 15,687 0 0 0 Income Taxes - Current (credit) (2,359,901) 0 (543,085) (1,816,816) 0 0 - Deferred (credit) 348,598 0 (117,093) 465,691 0 0 ------------ --------------- ------------ --------------- ------------ --------- Total Operating Expenses 2,663,442 0 664,951 1,980,601 0 17,890 ------------ --------------- ------------ --------------- ------------ --------- Operating Income (2,663,442) 0 (664,951) (1,980,601) 0 (17,890) ------------ --------------- ------------ --------------- ------------ --------- Other Income and Deductions: Interest and dividend income 8,818 422,331 422,338 8,811 0 0 Equity in earnings of jointly-owned companies (301,651) (2,625,683) (2,625,683) 0 0 (301,651) Allowance for other funds used during construction 21 21 0 0 0 Other income (deductions) - net 136,864 (425) 25,746 (296) 111,839 ------------ --------------- ------------ --------------- ------------ --------- Total Other Income (155,948) (2,203,352) (2,203,749) 34,557 (296) (189,812) ------------ --------------- ------------ --------------- ------------ --------- Income Before Interest Charges (2,819,390) (2,203,352) (2,868,700) (1,946,044) (296) (207,702) ------------ --------------- ------------ --------------- ------------ --------- Interest Charges: Other interest expense (principally short-term notes) 852,741 422,331 803,431 471,641 0 0 Allowance for borrowed funds during construction (69) (69) 0 0 0 ------------ --------------- ------------ --------------- ------------ --------- Total Interest Charges 852,672 422,331 803,362 471,641 0 0 ------------ --------------- ------------ --------------- ------------ --------- Net Income (Loss) (3,672,062) (2,625,683) (3,672,062) (2,417,685) (296) (207,702) ------------ --------------- ------------ --------------- ------------ --------- Earnings (Loss) Available for Common Shareholders ($3,672,062) ($2,625,683) ($3,672,062) ($2,417,685) ($296) ($207,702 ============ =============== ============ =============== ============ ========= EUA Energy Common Shares outstanding 100 Earnings per share ($36,720.62) ============ ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
EUA ENERGY INVESTMENT AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1995
EUA EUA Eastern Energy Energy EUA Unicord EUA Consolidated Eliminations Corporation Transcapacity Corporation Bioten ------------ --------------- ------------ --------------- ------------ --------- CASH FLOW FROM OPERATING ACTIVITIES: Net Income (Loss) ($3,672,062) ($2,625,683) ($3,672,062) ($2,417,685) ($296) ($207,702 Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: Depreciation and Amortization 285,650 0 0 285,650 0 0 Deferred Taxes 348,598 0 (117,093) 465,691 0 0 Other - Net (976,867) 2,625,683 1,760,973 (413,808) 0 301,651 Changes in Operating Assets and Liabilities: Accounts receivable (294,394) (149,885) 341,652 (674,091) 0 (111,840) Notes receivable (900,451) (6,494,639) (6,494,639) 0 0 (900,451) Accounts payable (191,366) 133,059 (75,567) (161,932) 296 178,896 Accrued taxes 0 0 0 0 0 0 Other - net 730,291 16,826 797,907 (50,790) 0 0 ------------ --------------- ------------ --------------- ------------ --------- Net Cash (Used in) Provided from Operating Activities (4,670,601) (6,494,639) (7,458,829) (2,966,965) 0 (739,446) ------------ --------------- ------------ --------------- ------------ --------- CASH FLOW FROM INVESTING ACTIVITIES: Construction expenditures (514,853) 0 0 (353,838) 0 (161,015) Increase/Decrease in Other Investments (2,300,000) (10) (10) 0 0 ********* ------------ --------------- ------------ --------------- ------------ --------- Net Cash Used in Investing Activities (2,814,853) (10) (10) (353,838) 0 ********* ------------ --------------- ------------ --------------- ------------ --------- CASH FLOW FROM FINANCING ACTIVITIES: Issuances: Common shares 0 10 0 0 0 10 Net increase in short-term debt 7,451,001 6,494,639 7,451,000 3,294,189 0 3,200,451 ------------ --------------- ------------ --------------- ------------ --------- Net Cash Provided From Financing Activities 7,451,001 6,494,649 7,451,000 3,294,189 0 3,200,461 ------------ --------------- ------------ --------------- ------------ --------- NET (DECREASE) INCREASE IN CASH (34,453) 0 (7,839) (26,614) 0 0 Cash and temporary cash investments at beginning of year 502,816 0 13,661 489,155 0 0 Cash and temporary cash investments ------------ --------------- ------------ --------------- ------------ --------- at end of year $468,363 $0 $5,822 $462,541 $0 $0 ============ =============== ============ =============== ============ ========= Cash paid during the year for: Interest (Net of Amounts Capitalized) $405,437 $0 ($69) $405,506 $0 $0 Income Taxes (Refund) ($939,062) $0 ($270,636) ($668,722) $296 $0 ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
EUA ENERGY INVESTMENT AND SUBSIDIARY CONSOLIDATING STATEMENTS OF RETAINED EARNINGS AND OTHER PAID-IN CAPITAL DECEMBER 31, 1995
EUA EUA Eastern Energy Energy EUA Unicord EUA Consolidated Eliminations Corporation Transcapacity Corporation Bioten ------------ --------------- ------------ --------------- ------------ --------- Balance of retained earnings at begin. of year ($5,379,769) ($1,894,891) ($5,379,769) ($53,595) ($1,841,296) $0 Additions: Net Income (Loss) (3,672,062) ($2,625,683) (3,672,062) (2,417,685) (296) (207,702) ------------ --------------- ------------ --------------- ------------ --------- Balance of retained earnings at end of period ($9,051,831) ($4,520,574) ($9,051,831) ($2,471,280) ($1,841,592) ($207,702 ============ =============== ============ =============== ============ ========= ( ) Denotes Contra The accompanying notes are an integral part of the financial statements.
Notes To Consolidated Financial Statements December 31, 1995 (A) Summary Of Significant Accounting Policies: General: Eastern Utilities Associates (EUA) is a diversified energy services holding company. Its subsidiaries are principally engaged in the generation, transmission, distribution and sale of electricity; energy related services such as energy management; and promoting the conservation and efficient use of energy. Estimates: 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. Basis of Consolidation: The consolidated financial statements include the accounts of EUA and all subsidiaries. All material intercompany transactions between the consolidated subsidiaries have been eliminated. System of Accounts: The accounts of EUA and its consolidated subsidiaries are maintained in accordance with the uniform system of accounts prescribed by the regulatory bodies having jurisdiction. Jointly Owned Companies: Montaup Electric Company (Montaup) follows the equity method of accounting for its stock ownership investments in jointly owned companies including four regional nuclear generating companies. Montaup's investments in these nuclear generating companies range from 2.25% to 4.50%. Montaup is entitled to electricity produced from these facilities based on its ownership interests and is billed for its entitlement pursuant to contractual agreements which are approved by the Federal Energy Regulatory Commission (FERC). One of the four facilities is being decommissioned, but Montaup is required to pay, and has received FERC authorization to recover, its proportionate share of any unrecovered costs and costs incurred after the plant's retirement. Montaup's share of all unrecovered assets and the total estimated costs to decommission the unit aggregated approximately $10.1 million at December 31, 1995 and is included with Other Liabilities on the Consolidated Balance Sheet. Also, due to recoverability, a regulatory asset has been recorded for the same amount and is included with Other Assets. Montaup also has a stock ownership investment of 3.27% in each of two companies which own and operate certain transmission facilities between the Hydro Quebec electric system and New England. EUA Ocean State Corporation (EUA Ocean State) follows the equity method of accounting for its 29.9% partnership interest in the Ocean State Power Project (OSP). EUA Ocean State's investment in OSP and Montaup's stock ownership investments are included in "Investments in Jointly Owned Companies" on the Consolidated Balance Sheet. Plant and Depreciation: Utility plant is stated at original cost. The cost of additions to utility plant includes contracted work, direct labor and material, allocable overhead, allowance for funds used during construction and indirect charges for engineering and supervision. For financial statement purposes, depreciation is computed on the straight-line method based on estimated useful lives of the various classes of property. On a consolidated basis, provisions for depreciation on utility plant were equivalent to a composite rate of approximately 3.3% in 1995 based on the average depreciable property balances at the beginning and end of each year. Non-utility property and equipment of EUA Cogenex Corporation (EUA Cogenex) is stated at original cost. For financial statement purposes, depreciation on office furniture and equipment, computer equipment and real property is computed on the straight-line method based on estimated useful lives ranging from five to forty years. Project equipment is depreciated over the term of the applicable contracts or based on the estimated useful lives, whichever is shorter, ranging from five to fifteen years. Other Assets: The components of Other Assets at December 31, 1995 are detailed as follows: (In Thousands) 1995 Regulatory Assets: Unamortized losses on reacquired debt $ 15,894 Unrecovered plant and decommissioning costs 10,100 Deferred FAS 109 costs (Note B) 48,196 Deferred FAS 106 costs 4,583 Mendon Road judgment (Note J) 6,591 Other regulatory assets 5,650 Total regulatory assets 91,014 Other deferred charges and assets: Unamortized debt expenses 5,349 Goodwill 7,054 Other 20,637 Total Other Assets $ 124,054 Regulatory Accounting: EUA's Core Electric companies are subject to certain accounting rules that are not applicable to other industries. These accounting rules allow regulated companies, in appropriate circumstances, to establish regulatory assets and liabilities which defer the current financial impact of certain costs that are expected to be recovered in future rates. EUA believes that its Core Electric operations continue to meet the criteria established in these accounting standards. Effects of legislation and/or regulatory initiatives or EUA's own initiatives such as "Choice and Competition" could ultimately cause the Core Electric companies to no longer follow these accounting rules. In such an event, a non-cash write-off of regulatory assets and liabilities could be required at that time. Allowance for Funds Used During Construction (AFUDC) and Capitalized Interest: AFUDC represents the estimated cost of borrowed and equity funds used to finance the EUA System's construction program. In accordance with regulatory accounting, AFUDC is capitalized as a cost of utility plant in the same manner as certain general and administrative costs. AFUDC is not an item of current cash income but is recovered over the service life of utility plant in the form of increased revenues collected as a result of higher depreciation expense. The combined rate used in calculating AFUDC was 9.2% in 1995. The caption "Allowance for Borrowed Funds Used During Construction" also includes interest capitalized for non-regulated entities in accordance with Financial Accounting Standards Board (FASB) Statement No. 34. Operating Revenues: Utility revenues are based on billing rates authorized by applicable federal and state regulatory commissions. Eastern Edison Company (Eastern Edison), Blackstone Valley Electric Company (Blackstone) and Newport Electric Corporation (Newport) (collectively, the Retail Subsidiaries) accrue the estimated amount of unbilled base rate revenues at the end of each month to match costs and revenues more closely. In addition they also record the difference between fuel costs incurred and fuel costs billed. Montaup recognizes revenues when billed. Montaup, Blackstone, and Newport also record revenues related to rate adjustment mechanisms. EUA Cogenex's revenues are recognized based on financial arrangements established by each individual contract. Under paid-from-savings contracts, revenues are recognized as energy savings are realized by customers. Revenue from the sale of energy savings projects and sales-type leases are recognized when the sales are complete. Interest on the financing portion of the contracts is recognized as earned at rates established at the outset of the financing arrangement. All construction and installation costs are recognized as contract expenses when the contract revenues are recorded. In circumstances in which material uncertainties exist as to contract profitability, cost recovery accounting is followed and revenues received under such contracts are first accounted for as recovery of costs to the extent incurred. Federal Income Taxes: EUA and its subsidiaries generally reflect in income the estimated amount of taxes currently payable, and provide for deferred taxes on certain items subject to temporary timing differences to the extent permitted by the various regulatory agencies. EUA's rate-regulated subsidiaries defer recognition of annual investment tax credits (ITC) and amortize these credits over the productive lives of the related assets. Cash and Temporary Cash Investments: EUA considers all highly liquid investments and temporary cash investments with a maturity of three months or less when acquired to be cash equivalents. New Accounting Standard: In March 1995, the FASB issued Statement of Financial Accounting Standard No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of" (FAS 121), effective for fiscal year 1996. FAS 121 requires all regulatory assets, assets which were established as a result of high probability of recovery in a regulated environment, to continue to meet that high probability of recovery at each balance sheet date. Based on the current regulatory framework, management does not expect that adoption of this standard will have a material effect on EUA's financial position or results of operation. However, this assumption may change in the future as changes are made in the current regulatory framework or as competitive factors influence wholesale and retail pricing in the electric utility industry. (B) Income Taxes: EUA adopted FASB statement No. 109, "Accounting for Income Taxes" (FAS 109) which required recognition of deferred income taxes for temporary differences that are reported in different years for financial reporting and tax purposes using the liability method. Under the liability method, deferred tax liabilities or assets are computed using the tax rates that will be in effect when temporary differences reverse. Generally, for regulated companies, the change in tax rates may not be immediately recognized in operating results because of rate-making treatment and provisions in the Tax Reform Act of 1986. At December 31, 1995, no valuation allowance was deemed necessary for total deferred tax assets. Total deferred tax assets and liabilities for 1995 are comprised as follows: Deferred Tax Deferred Tax ($ in thousands) Assets ($ in thousands) Liabilities 1995 1995 Plant Related Plant Related Differences $21,028 Differences $170,562 Alternative Refinancing Minimum Tax 9,302 Costs 1,919 Litigation 41 Pensions 1,496 Bad Debts 125 Pensions 3,392 Acquisitions 4,281 Other 7,143 Other 11,684 Total $45,312 Total $185,661 As of December 31, 1995, EUA has recorded on its Consolidated Balance Sheet a regulatory liability to ratepayers of approximately $27.2 million. This amount primarily represents excess deferred income taxes resulting from the reduction in the federal income tax rate and also include deferred taxes provided on investment tax credits. Also at December 31, 1995, a regulatory asset of approximately $48.2 million has been recorded, representing the cumulative amount of federal income taxes on temporary depreciation differences which were previously flowed through to ratepayers. EUA has $9.3 million of alternative minimum tax credits which have no expiration and can be utilized to reduce the consolidated regular tax liability. Components of income tax expense for 1995 are as follows:
NOTE B - INCOME AND TAXES: Components of income and deferred tax expense for the year 1995 are as follows: Blackstone Eastern EUA Valley Newport EUA Utilities Service Electric Electric Consolidated Eliminations Associates Corporation Company Company Federal: Current $10,334,458 48,832 $976 ($951) $1,329,141 $ 890,120 Deferred 6,456,349 (1,062,357) (53,080) 35,590 1,132,684 381,931 Investment tax credit, Net (1,129,841) (183,653) (3,960) 15,660,966 (1,013,525) (52,104) 34,639 2,278,172 1,268,091 State: Current 2,578,551 8,305 1,580 639 Deferred (1,224,973) 59,249 67,630 1,353,578 0 67,554 69,210 639 Charged to Operations -Federal & State 17,014,544 (1,013,525) (52,104) 102,193 2,347,382 1,268,730 Charged to Other Income Current 4,352,657 2,769 36,990 Deferred (6,216,389) (17,330) Investment Tax Credit, Net (82,199) (82,199) Total 15,068,613 ($1,013,525) ($69,434) $102,193 $2,350,151 $1,223,521 Tax Computed at Statutory Rates 17,505,541 (1,032,684) ($115,665) $177,207 $2,327,001 $1,161,258 (Decrease) Increase in Tax From: Equity Component of AFUDC (186,670) (11,491) (10,455) Depreciation of Equity AFUDC 118,027 4,204 261,848 116,229 Amortization and Utilization (1,212,047) (183,659) (86,160) Cost of Removal (35,980) (66,823) (26,881) State Tax, Net of Federal Inc (44,070) 43,910 44,987 415 Other (1,076,188) 19,159 46,231 (123,126) (21,712) 69,115 Total $15,068,613 (1,013,525) ($69,434) $102,193 $2,350,151 $1,223,521
Eastern EUA EUA Edison Cogenex Energy EUA Company Corporation Investment Ocean State Consolidated Consolidated Consolidated Corporation Federal: $11,387,070 $503,090 ($2,359,901) ($1,366,255) Current 3,679,173 (125,953) 348,598 (4,951) Deferred (942,228) Investment tax credit, Net 14,124,015 377,137 (2,011,303) (1,371,206) State: 2,446,716 121,269 42 Current (917,660) (434,192) Deferred 1,529,056 (312,923) 0 42 Charged to Operations -Federal & State 15,653,071 64,214 (2,011,303) (1,371,164) Charged to Other Income Current 521,796 (3,397) (110,633) 3,905,132 Deferred (67,226) (6,041,712) (90,121) Investment Tax Credit, Net Total $16,107,641 ($5,980,895) ($2,121,936) $2,443,847 Federal income tax expense was different that the amounts computed by applying the statutory rates to book income subject to tax for the following reasons: Tax Computed at Statutory Rates $17,342,619 (4,859,859) ($2,027,899) $2,468,195 (Decrease) Increase in Tax From: Equity Component of AFUDC (164,724) Depreciation of Equity AFUDC (264,254) Amortization and Utilization (942,228) Cost of Removal 57,724 State Tax, Net of Federal In 1,069,595 (1,204,953) 889 1,087 Other (991,091) 83,917 (94,926) (25,435) Total $16,107,641 (5,980,896) ($2,121,936) $2,443,847
NOTE B - INCOME TAXES (continued): Components of income and deferred tax expense for the year 1995 are as follows:
Eastern Eastern Montaup Edison Edison Electric Consolidated Eliminations Company Company Federal: Current $11,387,070 $7,487,033 $3,900,037 Deferred 3,679,173 (429,321) 4,108,494 Investment tax credit, Net (942,228) (314,076) (628,152) 14,124,015 6,743,636 7,380,379 State: Current 2,446,716 1,488,288 958,428 Deferred (917,660) (222,050) (695,610) 1,529,056 1,266,238 262,818 Charged to Operations (Federal & State) 15,653,071 8,009,874 7,643,197 Charged to Other Income Current 521,796 99,471 422,325 Deferred (67,226) (67,226) Investment Tax Credit, Net 0 Total $16,107,641 $8,109,345 $7,998,296 Federal income tax expense was different than the amounts computed by applying the statutory rates to book income subject to tax for the following reasons: Tax Computed at Statutory Rates $17,342,619 $7,649,052 $9,693,567 (Decrease) Increase in Tax From: Equity Component of AFUDC (164,724) (13,233) (151,491) Depreciation of Equity AFUDC (264,254) (89,371) (174,883) Amortization and Utilization of (942,228) (314,076) (628,152) Cost of Removal 57,724 57,724 State Tax, Net of Federal Income 1,069,595 833,772 235,823 Other (991,091) (14,523) (976,568) Total $16,107,641 $8,109,345 $7,998,296
NOTE B - INCOME TAXES (continued): Components of income and deferred tax expense for the year 1995 are as follows:
EUA EUA Cogenex EUA Northeast Citizens EUA EUA Corporation Cogenex Energy Conservation Highland Cogenex Consolidated Eliminations Corporation Mgmt.Inc. Service, Inc. Corporation Canada Federal: Current $ 503,090 ($746,662) $1,075,921 ($6,822) $116,479 $64,174 Deferred (125,953) 41,536 (167,489) Investment tax credit, Net 0 377,137 (705,126) 908,432 (6,822) 116,479 64,174 State: Current 121,269 85,863 19,708 (2,047) 17,745 Deferred (434,192) (287,015) (147,177) (312,923) (201,152) (127,469) (2,047) 17,745 0 Charged to Operations (Federal & 64,214 ($906,278) $ 780,963 ($8,869) $134,224 $64,174 Charged to Other Income Current (3,397) (3,397) Deferred (6,041,712) (6,041,712) Investment Tax Credit, Net 0 Total ($5,980,895) ($6,951,387) $ 780,963 ($8,869) $134,224 $64,174 Federal income tax expense was different than the amounts computed by applying the statutory rates to book income subject to tax for the following reasons: Tax Computed at Statutory Rates ($4,859,859) ($5,940,845) $ 930,100 ($9,328) $ 96,040 $64,174 (Decrease) Increase in Tax From: Equity Component of AFUDC 0 Depreciation of Equity AFUDC 0 Amortization and Utilization of 0 Cost of Removal 0 State Tax, Net of Federal Income (1,204,953) (1,132,301) (82,855) (1,331) 11,534 Other 83,917 121,759 (66,282) 1,790 26,650 Total ($5,980,895) ($6,951,387) 780,963 ($8,869) $134,224 $64,174
NOTE B - INCOME TAXES (continued): Components of income and deferred tax expense for the year 1995 are as follows:
EUA Energy EUA EUA Investment Energy EUA Unicord EUA Consolidated Eliminations Corporation Transcapacity Corporation Bioten Federal: Current ($2,359,901) ($543,085) ($1,816,816) Deferred 348,598 (117,093) 465,691 Investment tax credit, Net 0 (2,011,303) (660,178) ($1,351,125) 0 0 State: Current 0 Deferred 0 Charged to Operations (Federal & State) (2,011,303) ($660,178) ($1,351,125) Charged to Other Income Current (110,633) 751 456 (111,840) Deferred 0 Investment Tax Credit, Net 0 0 Total ($2,121,936) ($659,427) ($1,350,669) $0 ($111,840) Federal income tax expense was different than the amounts computed by applying the statutory rates to book income subject to tax for the following reasons: Tax Computed at Statutory Rates ($2,027,899) ($597,136) ($1,318,923) ($111,840) (Decrease) Increase in Tax From: Equity Component of AFUDC 0 Depreciation of Equity AFUDC 0 Amortization and Utilization of 0 State Tax, Net of Federal Income 889 593 296 Other (94,926) (62,884) (32,042) Total ($2,121,936) ($659,427) ($1,350,669) $0 ($111,840)
C) Capital Stock: The changes in the number of common shares outstanding and related increases in Other Paid-In Capital during the year ended December 31, 1995 were as follows: Number of Common Shares Issued Dividend Highland Common Other Reinvestment Energy Shares Paid-In and Employee Group At Par Capital Savings Plans Acquisition (000) (000) 1995 323,526 176,258 $ 2,499 $ 7,683 The preferred stock provisions of the Retail Subsidiaries place certain restrictions upon the payment of dividends on common stock by each company. At December 31, 1995 each company was in excess of the minimum requirements which would make these restrictions effective. In the event of involuntary liquidation, the holders of non-redeemable preferred stock of the Retail Subsidiaries are entitled to $100 per share plus accrued dividends. In the event of voluntary liquidation, or if redeemed at the option of these companies, each share of the non-redeemable preferred stock is entitled to accrued dividends plus the following: Company Issue Amount Blackstone: 4.25% issue $104.40 5.60% issue 103.82 Newport: 3.75% issue 103.50 (D) Redeemable Preferred Stock: Eastern Edison's 6 5/8% Preferred Stock issue is entitled to an annual mandatory sinking fund sufficient to redeem 15,000 shares commencing September 1, 2003. The redemption price is $100 per share plus accrued dividends. All outstanding shares of the 6 5/8% issue are subject to mandatory redemption on September 1, 2008, at a price of $100 per share plus accrued dividends. In the event of liquidation, the holders of Eastern Edison's 6 5/8% Preferred Stock are entitled to $100 per share plus accrued dividends. Newport's 9.75% Preferred Stock issue is entitled to a mandatory sinking fund sufficient to redeem 500 shares during each twelve-month period until the year 1999. The balance of any shares outstanding must be redeemed by the year 2000. The redemption price is $100 per share plus accrued dividends. In the event of involuntary liquidation, the holders of Newport's redeemable preferred stock are entitled to $100 per share plus accrued dividends. In the event of voluntary liquidation, or if redeemed at the option of Newport, the holders of the 9.75% issue are entitled to $102.44 per share plus accrued dividends prior to October 1, 1998; thereafter no premium is payable upon such redemption. The aggregate amount of redeemable preferred stock sinking fund requirements for each of the five years following 1995 are $50,000 for 1996, $40,000 for 1997 and zero for 1998, 1999 and 2000. (E) Long-Term Debt: The various mortgage bond issues of Blackstone, Eastern Edison, and Newport are collateralized by substantially all of their utility plant. In addition, Eastern Edison's bonds are collateralized by securities of Montaup, which are wholly-owned by Eastern Edison, in the principal amount of approximately $236 million. Blackstone's Variable Rate Demand Bonds are collateralized by an irrevocable letter of credit which expires on January 21, 1997. The letter of credit permits an extension of one year upon mutual agreement of the bank and Blackstone. Newport's Variable Rate Electric Energy Facilities Revenue Refunding Bonds are collateralized by an irrevocable Letter of Credit which expires on January 6, 1997, and permits an extension of one year upon mutual agreement of the Bank and Newport. EUA Service Corporation's (EUA Service) 10.2% Secured Notes due 2008 are collateralized by certain real estate and property of the company. In December, Eastern Edison used available cash to redeem $25 million of 9-9 1/4% Unsecured Medium Term Notes at maturity, and $10 million of 8.90% First Mortgage and Collateral Trust Bonds at maturity. The EUA System's aggregate amount of current cash sinking fund requirements and maturities of long-term debt, (excluding amounts that may be satisfied by available property additions) for each of the five years following 1995 are: $19.5 million in 1996, $27.5 million in 1997, $72.5 million in 1998, $21.9 million in 1999, and $62.5 million in 2000. (F) Fair Value Of Financial Instruments: The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate: Cash and Temporary Cash Investments: The carrying amount approximates fair value because of the short-term maturity of these instruments. Long Term Notes Receivable and Net Investment in Sales-Type Leases: The carrying amounts approximate fair value due to the nature of the asset. Preferred Stock and Long-Term Debt of Subsidiaries: The fair value of the System's redeemable preferred stock and long-term debt were based on quoted market prices for such securities at December 31, 1995. Carrying Fair Amount ($000) Value ($000) EUA Cash and Temporary Cash Investments $ 188 $ 188 Redeemable Preferred Stock - - Long-Term Debt - - EUA Service Cash and Temporary Cash Investments 254 254 Redeemable Preferred Stock - - Long-Term Debt 12,300 13,884 Blackstone Cash and Temporary Cash Investments 753 753 Redeemable Preferred Stock - - Long-Term Debt 38,000 39,366 Newport Cash and Temporary Cash Investments 215 215 Redeemable Preferred Stock 90 90 Long-Term Debt 22,021 23,194 Eastern Edison-Consolidated Cash and Temporary Cash Investments 533 533 Redeemable Preferred Stock 30,000 31,800 Long-Term Debt 230,000 233,292 EUA Cogenex- Consolidated Cash and Temporary Cash Investments 1,503 1,503 Redeemable Preferred Stock - - Long-Term Notes Receivable 38,635 38,635 Net Investment in Sales-Type Leases 9,565 9,565 Long-Term Debt 119,200 128,301 (F) Fair Value of Financial Instruments - (continued) Carrying Fair Amount Value EUA Energy Cash and Temporary Cash Investments 468 468 Redeemable Preferred Stock - - Long-Term Debt - - EUA Ocean State Cash and Temporary Cash Investments 145 145 Redeemable Preferred Stock - - Long-Term Debt 33,544 41,205 (G) Lines Of Credit: EUA System companies maintain short-term lines of credit with various banks aggregating approximately $150 million. At December 31, 1995, unused short-term lines of credit were approximately $111 million. In accordance with informal agreements with the various banks, commitment fees are required to maintain certain lines of credit. During 1995, the weighted average interest rate for short-term borrowings was 6.2%. (H) Jointly Owned Facilities: At December 31, 1995, in addition to the stock ownership interests discussed in Note A, Nature of Operations and Summary of Significant Accounting Policies Jointly Owned Companies, Montaup and Newport had direct ownership interests in the following electric generating facilities: Accumulated Provision For Net Construc- Utility Depreciation Utility tion Percent Plant in and Plant in Work in ($ in thousands) Owned Service Amortization Service Progress Montaup: Canal Unit 2 50.00% $ 71,715 $42,657 $ 29,058 $2,085 Wyman Unit 4 1.96% 4,050 2,020 2,030 Seabrook Unit 1 2.90% 194,735 23,993 170,742 454 Millstone Unit 3 4.01% 178,231 40,482 137,749 42 Newport: Wyman Unit 4 0.67% 1,314 684 630 The foregoing amounts represent Montaup's and Newport's interest in each facility, including nuclear fuel where appropriate, and are included on the like-captioned lines on the Consolidated Balance Sheet. At December 31, 1995, Montaup's total net investment in nuclear fuel of the Seabrook and Millstone Units amounted to $3.0 million and $2.2 million, respectively. Montaup's and Newport's shares of related operating and maintenance expenses with respect to units reflected in the table above are included in the corresponding operating expenses. (I) Financial Information By Business Segments: The Core Electric Business includes results of the electric utility operations of Blackstone, Eastern Edison, Newport and Montaup. Energy Related Business includes results of our diversified energy related subsidiaries, EUA Cogenex, EUA Ocean State and EUA Energy Investment Corporation (EUA Energy). Corporate results include the operations of EUA Service and EUA Parent.
Pre-Tax Depreciation Cash Equity in Operating Operating Income and Construction Subsidiary ($ in thousands) Revenues Income Taxes Amortization Expenditures Earnings Year Ended December 31, 1995 Core Electric $ 483,864 $ 86,505 $ 20,312 $ 34,218 $ 31,466 $ 1,646 Energy Related 79,499 3,377 (3,318) 11,265 44,684 10,417 Corporate (1,139) 21 9 1,773 Total $ 563,363 $ 88,743 $ 17,015 $ 45,492 $ 77,923 $12,063
December 31, ($ in thousands) 1995 Total Plant and Other Investments Core Electric $ 716,828 Energy Related 203,670 Corporate 20,302 Total Plant and Other Investments 940,800 Other Assets Core Electric 188,087 Energy Related 57,083 Corporate 14,303 Total Other Assets 259,473 Total Assets $1,200,273 (J) Commitments And Contingencies: Nuclear Fuel Disposal and Nuclear Plant Decommissioning Costs: The owners (or lead participants) of the nuclear units in which Montaup has an interest have made, or expect to make, various arrangements for the acquisition of uranium concentrate, the conversion, enrichment, fabrication and utilization of nuclear fuel and the disposition of that fuel after use. The owners (or lead participants) of United States nuclear units have entered into contracts with the Department of Energy (DOE) for disposal of spent nuclear fuel in accordance with the Nuclear Waste Policy Act of 1982 (NWPA). The NWPA requires (subject to various contingencies) that the federal government design, license, construct and operate a permanent repository for high level radioactive wastes and spent nuclear fuel and establish a prescribed fee for the disposal of such wastes and nuclear fuel. The NWPA specifies that the DOE provide for the disposal of such waste and spent nuclear fuel starting in 1998. Objections on environmental and other grounds have been asserted against proposals for storage as well as disposal of spent nuclear fuel. The DOE now estimates that a permanent disposal site for spent fuel will not be ready to accept fuel for storage or disposal until as late as the year 2010. Montaup owns a 4.01% interest in Millstone Unit 3 and a 2.9% interest in Seabrook Unit 1. Northeast Utilities, the operator of the units, indicates that Millstone Unit 3 has sufficient on-site storage facilities which, with rack additions, can accommodate its spent fuel for the projected life of the unit. At the Seabrook Project, there is on-site storage capacity which, with rack additions, will be sufficient to at least the year 2011. The Energy Policy Act requires that a fund be created for the decommissioning and decontamination of the DOE uranium enrichment facilities. The fund will be financed in part by special assessments on nuclear power plants in which Montaup has an interest. These assessments are calculated based on the utilities' prior use of the government facilities and have been levied by the DOE, starting in September 1993, and will continue over 15 years. This cost is passed on to the joint owners or power buyers as an additional fuel charge on a monthly basis and is currently being recovered by Montaup through rates. Also, Montaup is recovering through rates its share of estimated decommissioning costs for Millstone Unit 3 and Seabrook Unit 1. Montaup's share of the current estimate of total costs to decommission Millstone Unit 3 is $19.2 million in 1995 dollars, and Seabrook Unit 1 is $12.5 million in 1995 dollars. These figures are based on studies performed for the lead owners of the plants. Montaup also pays into decommissioning reserves pursuant to contractual arrangements with other nuclear generating facilities in which it has an equity ownership interest or life of the unit entitlement. Such expenses are currently recoverable through rates. Pensions: EUA maintains a non-contributory defined benefit pension plan covering substantially all employees of the EUA System (Retirement Plan). Retirement Plan benefits are based on years of service and average compensation over the four years prior to retirement. It is the EUA System's policy to fund the Retirement Plan on a current basis in amounts determined to meet the funding standards established by the Employee Retirement Income Security Act of 1974. Net pension expense for the Retirement Plan, including amounts related to the 1995 voluntary retirement incentive offer, for 1995, included the following components: ($ in thousands) 1995 Service cost-benefits earned during the period $ 2,776 Interest cost on projected benefit obligations 9,391 Actual loss (return) on assets (36,220) Net amortization and deferrals 24,392 Net periodic pension expense 339 Voluntary Retirement Incentive 1,653 Total periodic pension expense $ 1,992 Assumptions used to determine pension costs: Discount Rate 8.25% Compensation Increase Rate 4.75% Long-Term Return on Assets 9.50% The following table sets forth the actuarial present value of benefit obligations and funded status at December 31, 1995: ($ in thousands) 1995 Accumulated benefit obligations Vested $ (117,060) Non-vested (271) Total (117,331) Projected benefit obligations (135,415) Plan assets at fair value, primarily stocks and bonds 152,308 Less: Unrecognized net gain on assets (21,769) Unamortized net assets at January 1 4,939 Net pension assets $ 63 The discount rate and compensation increase rate used to determine post-pension costs were changed effective January 1, 1996 to 7.25% and 4.25% respectively, and were used to calculate the plan's funded status at December 31, 1995. The one-time voluntary retirement incentive also resulted in $1.6 million of non-qualified pension benefits which were expensed in 1995. At December 31, 1995, approximately $1.5 million was included in other liabilities for these unfunded benefits. EUA also maintains non-qualified supplemental retirement plans for certain officers of the EUA System (Supplemental Plans). Benefits provided under the Supplemental Plans are based primarily on compensation at retirement date. EUA maintains life insurance on certain participants of the Supplemental Plans to fund in whole, or in part, its future liabilities under the Supplemental Plans. As of December 31, 1995, approximately $3.4 million was included in accrued expenses and other liabilities for these plans. For the years ended December 31, 1995, expenses related to the Supplemental Plans were $1.5 million. Post-Retirement Benefits: Retired employees are entitled to participate in health care and life insurance benefit plans. Health care benefits are subject to deductibles and other limitations. Health care and life insurance benefits are partially funded by EUA System companies for all qualified employees. The EUA System adopted Statement of Financial Accounting Standard No. 106, "Accounting for Post-Retirement Benefits Other Than Pensions," (FAS 106) as of January 1, 1993. This standard establishes accounting and reporting standards for such post-retirement benefits as health care and life insurance. Under FAS 106 the present value of future benefits is recorded as a periodic expense over employee service periods through the date they become fully eligible for benefits. With respect to periods prior to adopting FAS 106, EUA elected to recognize accrued costs (the Transition Obligation) over a period of 20 years, as permitted by FAS 106. The resultant annual expense, including amortization of the Transition Obligation and net of capitalized and deferred amounts, was approximately $6.3 million in 1995. The total cost of post-retirement benefits other than pensions for 1995 includes the following components: ($ in thousands) 1995 Service cost $ 996 Interest cost 4,822 Actual return on plan assets (671) Amortization of transition obligation 3,312 Other amortizations & deferrals - net (970) Net periodic post-retirement benefit cost 7,489 Voluntary Retirement Incentive 832 Total periodic post-retirement benefit costs $ 8,321 Assumptions used to determine post-retirement benefit costs: Discount rate 8.25% Health care cost trend rate - near-term 11.00% - long-term 5.00% Salary increase rate 4.75% Rate of return on plan assets - union 8.50% - non-union 5.50% Reconciliation of funded status: ($ in thousands) 1995 Accumulated post-retirement benefit obligation (APBO): Retirees $(40,817) Active employees fully eligible for benefits (9,760) Other active employees (20,115) Total $(70,692) Fair value of assets, primarily notes and bonds 12,614 Unrecognized transition obligation 56,314 Unrecognized net loss (gain) (7,575) (Accrued)/prepaid post-retirement benefit cost $ (9,339) The discount rate and compensation increase rate used to determine post-retirement benefit costs were changed effective January 1, 1996 to 7.25% and 4.25%, respectively, and were used to calculate the funded status of post-retirement benefits at December 31, 1995. Increasing the assumed health care cost trend rate by 1% each year would increase the total post-retirement benefit cost for 1995 by $0.8 million and increase the total accumulated post-retirement benefit obligation by $8.1 million. The EUA System has also established separate irrevocable external Voluntary Employees' Beneficiary Association Trust Funds for union and non-union retirees. Contributions to the funds commenced in March 1993 and totaled approximately $7.1 million during 1995, $6.7 million in 1994 and $6.0 million in 1993. Long-Term Purchased Power Contracts: The EUA System is committed under long-term purchased power contracts, expiring on various dates through September 2021, to pay demand charges whether or not energy is received. Under terms in effect at December 31, 1995, the aggregate annual minimum commitments for such contracts are approximately $129 million in 1996 and 1997, $12 million in 1998, $127 million in 1999, $123 million in 2000 and will aggregate $1.4 billion for the ensuing years. In addition, the EUA System is required to pay additional amounts depending on the actual amount of energy received under such contracts. The demand costs associated with these contracts are reflected as Purchased Power-Demand on the Consolidated Statement of Income. Such costs are currently recoverable through rates. Environmental Matters: The Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act of 1986, and certain similar state statutes authorize various governmental authorities to seek court orders compelling responsible parties to take cleanup action at disposal sites which have been determined by such governmental authorities to present an imminent and substantial danger to the public and to the environment because of an actual or threatened release of hazardous substances. Because of the nature of the EUA System's business, various by-products and substances are produced or handled which are classified as hazardous under the rules and regulations promulgated by the United States Environmental Protection Agency (EPA) as well as state and local authorities. The EUA System generally provides for the disposal of such substances through licensed contractors, but these statutory provisions generally impose potential joint and several responsibility on the generators of the wastes for cleanup costs. Subsidiaries of EUA have been notified with respect to a number of sites where they may be responsible for such costs, including sites where they may have joint and several liability with other responsible parties. It is the policy of the EUA System companies to notify liability insurers and to initiate claims. EUA is unable to predict whether liability, if any, will be assumed by, or can be enforced against, the insurance carrier in these matters. On December 13, 1994, the United States District Court for the District of Massachusetts (District Court) issued a judgment against Blackstone, finding Blackstone liable to the Commonwealth of Massachusetts (Commonwealth) for the full amount of response costs incurred by the Commonwealth in the cleanup of a by-product of manufactured gas at a site at Mendon Road in Attleboro, Massachusetts. The judgment also found Blackstone liable for interest and litigation expenses calculated to the date of judgment. The total liability is approximately $5.9 million, including approximately $3.6 million in interest which has accumulated since 1985. Due to the uncertainty of the ultimate outcome of this proceeding and anticipated recoverability, Blackstone recorded the $5.9 million District Court judgment as a deferred debit. This amount is included with Other Assets at December 31, 1995 and 1994. Blackstone filed a Notice of Appeal of the District Court's judgment and filed its brief with the United States Court of Appeals for the First Circuit (First Circuit) on February 24, 1995. On October 6, 1995 the First Circuit vacated the District Court's judgment and ordered the District Court to refer the matter to the EPA to determine whether the chemical substance, ferric ferrocyanide (FFC), contained within the by-product is a hazardous substance. On January 20, 1995, Blackstone entered into an escrow agreement with the Commonwealth whereby Blackstone deposited $5.9 million with an escrow agent who transferred the funds into an interest bearing money market account. The distribution of the proceeds of the escrow account will be determined upon the final resolution of the judgment. No additional interest expense will accrue on the judgment amount. On January 28, 1994, Blackstone filed a complaint in the District Court, seeking, among other relief, contribution and reimbursement from Stone & Webster Inc., of New York City and several of its affiliated companies (Stone & Webster), and Valley Gas Company of Cumberland, Rhode Island (Valley) for any damages incurred by Blackstone regarding the Mendon Road site. On November 7, 1994, the court denied motions to dismiss the complaint which were filed by Stone & Webster and Valley. This proceeding was stayed in December 1995 pending final EPA determination as to whether FFC is hazardous. In addition, Blackstone has notified certain liability insurers and has filed claims with respect to the Mendon Road site, as well as other sites. Blackstone reached settlement with one carrier for reimbursement of legal costs related to the Mendon Road case. In January 1996, Blackstone received $1.2 million in connection with this settlement. As of December 31, 1995, the EUA System had incurred costs of approximately $4.6 million (excluding the $5.9 million Mendon Road judgment) in connection with these sites, substantially all of which relate to Blackstone. These amounts have been financed primarily by internally generated cash. Blackstone is currently amortizing all of its incurred costs over a five-year period consistent with prior regulatory recovery periods and is recovering certain of those costs in rates. EUA estimates that additional costs of up to $3.0 million (excluding the $5.9 million Mendon Road judgment) may be incurred at these sites through 1997 by its subsidiaries and the other responsible parties. Of this amount, approximately $2.5 million relates to sites at which Blackstone is a potentially responsible party. Estimates beyond 1997 cannot be made since site studies, which are the basis of these estimates, have not been completed. As a result of the recoverability of cleanup costs in rates and the uncertainty regarding both its estimated liability, as well as its potential contributions from insurance carriers and other responsible parties, EUA does not believe that the ultimate impact of the environmental costs will be material to the financial position of the EUA System or to any individual subsidiary and thus no loss provision is required at this time. The Clean Air Act created new regulatory programs and generally updated and strengthened air pollution control laws. These amendments will expand the regulatory role of the EPA regarding emissions from electric generating facilities and a host of other sources. EUA System generating facilities were first affected in 1995, when EPA regulations took effect for facilities owned by the EUA System. Montaup's coal-fired Somerset Unit #6 is utilizing lower sulfur content coal to meet the 1995 air standards. EUA does not anticipate the impact from the Amendments to be material to the financial position of the EUA System. In April 1992, the Northeast States for Coordinated Air Use Management (NESCAUM), an environmental advisory group for eight northeast states including Massachusetts and Rhode Island, issued recommendations for nitrogen oxide (Nox) controls for existing utility boilers required to meet the ozone non-attainment requirements of the Clean Air Act. The NESCAUM recommendations are more restrictive than the Clean Air Act requirements. The Massachusetts Department of Environmental Management has amended its regulations to require that Reasonably Available Control Technology (RACT) be implemented at all stationary sources potentially emitting 50 tons or more per year of NOx. Similar regulations have been issued in Rhode Island. Montaup has initiated compliance, through, among other things, selective noncatalytic reduction processes. A number of scientific studies in the past several years have examined the possibility of health effects from electric and magnetic fields (EMF) that are found everywhere there is electricity. While some of the studies have indicated there may be some association between exposure to EMF and health effects, other studies have indicated no direct association. In addition, the research to date has not conclusively established a direct causal relationship between EMF exposure and human health. Additional studies, which are intended to provide a better understanding of the subject, are continuing. Some states have enacted regulations to limit the strength of magnetic fields at the edge of transmission line rights-of-way. Rhode Island has enacted a statute which authorizes and directs the Energy Facility Siting Board to establish rules and regulations governing construction of high voltage transmission lines of 69kv or more. There is a bill pending in the Massachusetts Legislature that would authorize the Massachusetts Department of Public Utilities to examine the potential health effects of EMF. Management cannot predict the ultimate outcome of the EMF issue. Guarantee of Financial Obligations: EUA has guaranteed or entered into equity maintenance agreements in connection with certain obligations of its subsidiaries. EUA has guaranteed the repayment of EUA Cogenex's $35 million, 10.56% unsecured long-term notes due 2005 and EUA Ocean State's $33.5 million, 9.59% unsecured long-term notes due 2011. In addition, EUA has entered into equity maintenance agreements in connection with the issuance of EUA Service's 10.2% Secured Notes and EUA Cogenex's 7.22% and 9.6% Unsecured Notes. Under the December 1992 settlement agreement with EUA Power, EUA reaffirmed its guarantee of up to $10 million of EUA Power's share of the decommissioning costs of Seabrook Unit 1 and any costs of cancellation of Unit 1 or Unit 2. EUA guaranteed this obligation in 1990 in order to secure the release to EUA Power of a $10 million fund established by EUA Power at the time EUA Power acquired its Seabrook interest. EUA has not provided a reserve for this guarantee because management believes it unlikely that EUA will ever be required to honor the guarantee. Montaup is a 3.27% equity participant in two companies which own and operate transmission facilities interconnecting New England and the Hydro Quebec system in Canada. Montaup has guaranteed approximately $5.2 million of the outstanding debt of these two companies. In addition, Montaup and Newport have minimum rental commitments which total approximately $13.5 million and $1.7 million, respectively under a noncancelable transmission facilities support agreement for years subsequent to 1995. Other: In December 1992, Montaup commenced a declaratory judgment action in which it sought to have the Massachusetts Superior Court determine its rights under the Power Purchase Agreement between it and Aquidneck Power Limited Partnership. In April 1995 Montaup filed a motion for summary judgement and in June 1995 the court granted Montaup's motion. In July, Aquidneck filed for appeal of the court's decision. Montaup, EUA and EUA Service intend to vigorously contest the appeal and continue to believe that Aquidneck's claims have no basis in law. EUA Cogenex, through its EUA WestCoast (WestCoast) L.P., had under development a cogeneration facility of approximately 1.5 MW. The cogeneration facility experienced numerous start-up delays and cost overruns. The host of the facility has taken the position that the energy services agreement between WestCoast and itself is terminated due to, among other things, failure to complete the project. WestCoast disagrees with the host's right to terminate, but has decided not to contest the host's purported termination. In June 1993, WestCoast filed a lawsuit against the contractors responsible for the design and construction of the facility, as well as the surety which issued a performance bond guaranteeing construction. Certain defendants in that action have filed cross-complaints against WestCoast and EUA Cogenex, seeking, among other things, approximately $300,000 for payments withheld by WestCoast due to the contractor's deficient performance, contribution and indemnity. A contractor has also filed a cross-complaint against the host. Additionally, the host has filed a cross-complaint against Cogenex and the other parties in the litigation, seeking approximately $7 million in damages arising principally from lost economic advantage. EUA WestCoast filed its own cross complaint against the host, affirmatively seeking damages. EUA WestCoast has secured defense from insurance carriers for the claims made by the host. EUA Cogenex intends to vigorously prosecute its claims against the contractors, surety and host, and defend itself against any cross-complaints. EUA Cogenex cannot predict the ultimate resolution of this matter. As a result of EUA Cogenex's decision to discontinue cogeneration operations effective as of July 1, 1995, EUA Cogenex has recorded a reserve for its total investment in this project which is included in the one-time after-tax charge to earnings of approximately $10.5 million. EX-99 2 Exhibit D EASTERN UTILITIES ASSOCIATES AND AFFILIATED CORPORATIONS Federal Income Tax Allocation Agreement Pursuant to Rule 45(c). Public Utility Holding Company Act of 1935 and I.R.C. Regulation Section 1.1552-1(A) (1) and Section 1.1502-33(d) (2) (ii) This agreement made as of April 30, 1996, among Eastern Utilities Associates (the designation of the trustees for the time being under a Declaration of Trust dated April 2, 1928, as amended) (EUA); Eastern Edison Company, a Massachusetts corporation (Eastern); Blackstone Valley Electric Company, a Rhode Island corporation (Blackstone); Newport Electric Corporation, a Rhode Island corporation (Newport); Montaup Electric Company, a Massachusetts corporation (Montaup); EUA Service Corporation, a Massachusetts corporation (EUA Service); EUA Cogenex Corporation, a Massachusetts corporation (Cogenex); EUA Energy Investment Corporation, a Massachusetts corporation (EUA Energy); EUA Ocean State Corporation, a Rhode Island corporation (Ocean State); Eastern Unicord Corporation, a Massachusetts corporation (Unicord); Northeast Energy Management, Inc., a Massachusetts corporation (NEM); EUA Transcapacity, Inc., a Massachusetts corporation (Transcapacity); and EUA Cogenex-Canada, Inc., a Canadian corporation (Cogenex-Canada); EUA Bioten, Inc., a Massachusetts corporation (Bioten); EUA Highland Corporation, a Massachusetts corporation (Highland); EUA Citizens Conservation Services, Inc., a Massachusetts Corporation (CCS); EUA Energy Services, Inc., a Massachusetts Corporation (EUA ESI). W I T N E S S E T H T H A T : WHEREAS, the term "AFFILIATES" as used herein shall be deemed to refer to Eastern, Blackstone, Newport, Montaup, EUA Service, Cogenex, EUA Energy, Ocean State, Unicord, NEM, Transcapacity, EUA Cogenex-Canada, Bioten, Highland, CCS, and EUA ESI, the AFFILIATES together with EUA, and the CONSOLIDATED AFFILIATES as a collective taxpaying unit is sometimes referred to as the "GROUP" and WHEREAS, EUA owns directly or indirectly at least 80 percent of the issued and outstanding shares of each class of voting common stock of each of the AFFILIATES; each of the CONSOLIDATED AFFILIATES is a member of an affiliated group within the meaning of Section 1504 of the Internal Revenue Code of 1954, as mended (the "Code"), of which EUA is the common parent; and the GROUP presently participates in the filing of a consolidated income tax return. Definitions A. Corporate Tax Benefit - The amount by which the consolidated tax is reduced by including a net corporate tax loss or other net tax benefit in the consolidated return. The value of the benefit of the operating loss shall be determined by applying the then current corporate income tax rate to the amount of the loss. The value of a credit is the actual tax savings (100%). The value of capital losses used to offset capital gains shall be computed at the then current tax rate applicable to capital gains for corporations. The value of any corporate tax benefit to be reimbursed to a member shall be reduced by the amount of any alternate minimum tax attributable to such member. B. Separate Return Tax - The tax on the corporate taxable income of an associate company computed as though such company were not a member of the consolidated group. C. Excess Tax Credits - The investment tax credit, alternate minimum tax credit, research and development credit, energy tax credit or other similar credit that would be allowable in the consolidation (were it not for a limitation provided by law) in excess of the amount of such credits which could be utilized on a separate return basis with regard to such limitations. EUA and the AFFILIATES agree as follows: Allocation Procedures in Accordance with I.R.C Regulation Sections 1.1552-1(A) (I) and 1.1502-33(d) (2) (ii) A. General Rule Step 1 - The consolidated tax liability shall be apportioned among the companies in the ratio that each member's separate taxable income bears to the sum of the separate taxable incomes of all members having taxable income. Step 2 - An additional amount will be allocated to the members at 100% of the excess of the member's separate tax liability over the consolidated tax liability allocated to the member under Step 1. Under no circumstances shall the tax allocated to a member exceed its separate tax liability. Step 3 - The total of the amounts allocated under Step 2 is credited to those members who had "corporate tax benefits" as follows: (a) Those members having a negative allocation under Step 2; (b) If the total of the "corporate tax benefits" is greater than the total reduction in the consolidated tax, then the benefits arising from the inclusion of negative taxable incomes in the consolidated return shall be recognized and paid prior to the benefits arising from excess tax credits. (c) If the total benefits attributable to the negative taxable incomes of the members are not absorbed in the consolidated return, the benefit allocated to each company shall be in proportion to their respective negative taxable incomes. (d) If the total benefits attributable to the excess tax credits are not applied in the consolidated return, the benefit allocated to each company shall be in proportion to their respective excess tax credits. Step 4 - If the total consolidated tax liability shall result in an "Alternative Minimum Tax" liability position then an additional amount will be added to Steps 1 and 2. This additional amount will be allocated to the members based upon their proportionate amounts of alternate minimum taxable income until such time as the proposed amendments to the income tax regulations under Sections 53 to 59, 1502 and 1552 of the Internal Revenue Code become effective. Subsequent to the effective date of the new regulations, the alternate minimum tax liability will be allocated in accordance with the approved regulations provided that such regulations prohibit the use of the net positive alternate minimum taxable income allocation method. Step 5 - Reimbursement - Benefiting members will reimburse the others no later than 90 days after the filing of the consolidated tax return. B. Unused Corporate Tax Benefits A member that is entitled to payment for a tax benefit, but does not receive such payment because of the rules in Step 3 shall retain such right for the future to the extent that such benefit can be applied against the consolidated tax liability. Uncompensated corporate tax benefits arising from negative taxable income shall have priority over the benefits attributable to excess tax credits. C. Tax Adjustments In the event of any adjustments to the tax returns of any of the CONSOLIDATED AFFILIATES filed (by reason of an amended return, a claim for refund or an audit by the Internal Revenue Service), the liability, if any, of each of the AFFILIATES under Section A shall be redetermined to give effect to any such adjustment as if it had been made as part of the original computation of tax liability, and payments between EUA and the appropriate AFFILIATES shall be made within 120 days after any such payments are made or refunds are received, or, in the case of contested proceedings, within 120 days after a final determination of the contest. Interest and penalties, if any, attributable to such an adjustment shall be paid by each AFFILIATE to EUA in proportion to the increase in such AFFILIATE's separate return tax liability computed under Section A of this Agreement that is required to be paid to EUA. In any situation in which the Group's tax liability is adjusted by a revenue agent's report or a court settlement and an item-by-item modification is not made, the Group shall consult its accountants for assistance in determining a fair allocation of the adjusted liability. D. Subsidiaries of Affiliates If at any time, any of the AFFILIATES acquires or creates one or more subsidiary corporations that are includible corporations of the Group, they shall be subject to this Agreement and all references to the AFFILIATES herein shall be interpreted to include such subsidiaries as a group. E. Successors This Agreement shall be binding on and insure to the benefit of any successor, by merger, acquisition of assets or otherwise, to any of the parties hereto (including but not limited to any successor of EUA or any of the AFFILIATES succeeding to the tax attributes of such corporation under Section 381 of the Code) to the same extent as if such successor had been an original party to this agreement. F. Special Rule In making the tax allocations provided for in this agreement, notwithstanding any of the foregoing, no corporate tax benefits shall be allocated to EUA. Although the separate corporate taxable income or taxable loss of EUA and any tax credits attributable to EUA will be included in the consolidated return, only the tax savings attributable to such items shall be allocated to the other AFFILIATES as if EUA were not a member of the Group. In making this allocation, the tax savings of EUA shall be allocated only to members of the Group having taxable income. Also, in making the tax allocations, only those tax consequences attributable to non-affiliated transactions shall be allocated to EUA Service Corporation in accordance with Section A of this Agreement. All others will be allocated to the other AFFILIATES. G. Termination Clause This Agreement shall apply to the taxable year ending December 31, 1996, unless all of the members of the Group agree in writing to terminate the Agreement prior to the end of the taxable year. The Agreement shall be renewable on a year to year basis for subsequent taxable years, provided all of the members of the Group agree in writing, prior to the end of the immediately preceding taxable year, to extend the Agreement one additional year. Notwithstanding any termination, this Agreement shall continue in effect with respect to any payment or refunds due for all taxable periods prior to termination. IN WITNESS WHEREOF, the duly authorized representatives of the parties have set their hands this 30th day of April, 1996. EASTERN UTILITIES ASSOCIATES By /s/ Donald G. Pardus Title: Chairman of the Board EASTERN EDISON COMPANY EUA COGENEX CORPORATION By /s/ John D. Carney By /s/ Edward T. Liston Title: President Title: President BLACKSTONE VALLEY ELECTRIC EUA ENERGY INVESTMENT COMPANY CORPORATION By /s/ John D. Carney By /s/ Clifford J. Hebert, Jr. Title: President Title: Treasurer MONTAUP ELECTRIC COMPANY EUA OCEAN STATE CORPORATION By /s/ Kevin A. Kirby By /s/ Clifford J. Hebert, Jr. Title: Vice President Title: Treasurer EUA SERVICE CORPORATION EUA UNICORD CORPORATION By /s/ John R. Stevens By /s/ Clifford J. Hebert, Jr. Title: President Title: Clerk NEWPORT ELECTRIC COMPANY NORTHEAST ENERGY MANAGEMENT, INC. By /s/ John D. Carney By /s/ Basil G. Pallone Title: President Title: Vice President EUA COGENEX-CANADA, INC. EUA BIOTEN, INC. By /s/ Mark S. White By /s/ Clifford J. Hebert, Jr. Title: Asst. Treasurer Title: Treasurer EUA TRANSCAPACITY, INC. EUA HIGHLAND CORPORATION By /s/ Robert G. Powderly By /s/ Mark S. White Title: Ex. Vice President Title: Vice President EUA ENERGY SERVICES, INC. EUA CITIZENS CONSERVATION By /s/ Kevin A. Kirby SERVICES, INC. Title: Vice President By /s/ Stephen Morgan Title: President EX-27 3 EX G, EUA FDS WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
UT 1000 12-MOS DEC-31-1995 DEC-31-1995 PER-BOOK 721,086 219,714 135,419 124,054 0 1,200,273 102,184 216,817 56,228 375,229 26,218 6,937 434,871 39,540 0 0 19,506 50 0 0 297,922 1,200,273 563,363 17,015 474,620 491,635 71,728 4,677 76,405 41,458 34,947 2,321 32,626 32,050 38,216 112,962 1.61 0
EX-27 4 EX G, BVE FDS WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
UT 1000 12-MOS DEC-31-1995 DEC-31-1995 PER-BOOK 88,480 47 19,833 15,618 0 123,978 9,203 17,908 9,934 37,045 0 6,130 36,500 1,259 0 0 1,500 0 0 0 41,544 123,978 140,861 2,347 130,177 132,524 8,337 (5) 8,332 4,034 4,298 289 4,009 4,144 3,481 10,020 0 0
EX-27 5 EX. G, FDS EECO WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
UT 1000 12-MOS DEC-31-1995 DEC-31-1995 PER-BOOK 557,033 15,978 79,122 87,065 0 739,198 72,284 47,206 124,878 244,368 26,218 0 222,313 4,158 0 0 7,000 0 0 0 235,141 739,198 420,069 15,653 352,184 367,837 52,232 2,526 54,758 21,315 33,443 1,988 31,455 11,190 18,277 56,711 0 0
EX-27 6 EX G, FDS NEWPORT
UT 1000 12-MOS DEC-31-1995 DEC-31-1995 PER-BOOK 55,290 0 8,893 4,088 0 68,271 11,368 8,258 1,621 21,247 0 808 21,291 1,344 0 0 730 50 0 0 22,801 68,271 61,126 1,269 56,169 57,438 3,688 457 4,145 2,051 2,094 45 2,049 2,540 1,641 5,091 0 0
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