-----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, EbEi5+8NlibBgIa3YIeDwyBzQYMRtFXHH9voIBYRo+Jl1TKFQhoKP1pSmyJVp80a kQ0Gr9/iZ0n+rCrkEavuGQ== 0000071297-96-000004.txt : 19960131 0000071297-96-000004.hdr.sgml : 19960131 ACCESSION NUMBER: 0000071297-96-000004 CONFORMED SUBMISSION TYPE: U-1/A PUBLIC DOCUMENT COUNT: 11 FILED AS OF DATE: 19960129 SROS: BSE SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NEW ENGLAND ELECTRIC SYSTEM CENTRAL INDEX KEY: 0000071297 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 041663060 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: U-1/A SEC ACT: 1935 Act SEC FILE NUMBER: 070-08783 FILM NUMBER: 96508143 BUSINESS ADDRESS: STREET 1: 25 RESEARCH DR CITY: WESTBOROUGH STATE: MA ZIP: 01581 BUSINESS PHONE: 5083669011 U-1/A 1 File No. 70-8783 SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 AMENDMENT NO. 1 TO FORM U-1 APPLICATION/DECLARATION UNDER THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 NEW ENGLAND ELECTRIC SYSTEM and NEW ENGLAND ELECTRIC RESOURCES, INC. (Name of company filing this statement) 25 Research Drive, Westborough, Massachusetts 01582 (Address of principal executive offices) NEW ENGLAND ELECTRIC SYSTEM (Name of top registered holding company parent in system) Michael E. Jesanis Robert King Wulff Treasurer Corporation Counsel 25 Research Drive 25 Research Drive Westborough, Massachusetts 01582 Westborough, Massachusetts 01582 (Names and addresses of agents for service) Item 6(a) is hereby amended by supplying the following Exhibits: G-1 Financial Data Schedule for NEERI G-2 Financial Data Schedule for NEES (Parent Company Only) G-3 Financial Data Schedule for NEES (Consolidated) Item 6(b) is hereby amended by supplying the following Financial Statements 1-A Balance Sheet of NEES at September 30, 1995, Actual and Pro Forma (Parent Company Only) 1-B Statement of Income and Retained Earnings for NEES for twelve months ended September 30, 1995, Actual and Pro Forma (Parent Company Only) 2-A Consolidated Balance Sheet of NEES at September 30, 1995, Actual and Pro Forma 2-B Statement of Consolidated Income for NEES for twelve months ended September 30, 1995, Actual and Pro Forma 3-A Balance Sheet of NEERI at September 30, 1995, Actual and Pro Forma 3-B Statement of Loss and Retained Deficit for NEERI for twelve months ended September 30, 1995, Actual and Pro-Forma SIGNATURE Pursuant to the requirements of the Public Utility Holding Company Act of 1935, the undersigned companies have duly caused this Amendment No. 1 to their Application/Declaration on Form U-1 (Commission's File No. 70-8783) to be signed on their behalf, as indicated by the undersigned officers thereunto duly authorized by such companies. NEW ENGLAND ELECTRIC SYSTEM s/Michael E. Jesanis _____________________________________ Michael E. Jesanis, Treasurer NEW ENGLAND ELECTRIC RESOURCES, INC. s/John G. Cochrane _____________________________________ John G. Cochrane, Treasurer Dated: January 29, 1996 The name "New England Electric System" means the trustee or trustees for the time being (as trustee or trustees but not personally) under an agreement and declaration of trust dated January 2, 1926, as amended, which is hereby referred to, and a copy of which as amended has been filed with the Secretary of the Commonwealth. Any agreement, obligation or liability made, entered into or incurred by or on behalf of New England Electric System binds only its trust estate, and no shareholder, director, trustee, officer or agent thereof assumed or shall be held to any liability therefore. EX-99 2 EXHIBIT INDEX EXHIBIT NO. DESCRIPTION PAGE - ----------- ----------- ---- B Form of Subordinated Note Previously filed F Opinion of Counsel To be filed by amendment G-1 Financial Data Schedule Filed herewith for NEERI G-2 Financial Data Schedule Filed herewith for NEES (Parent Company Only) G-3 Financial Data Schedule Filed herewith for NEES (Consolidated) H Proposed Form of Notice Previously filed FINANCIAL STATEMENT INDEX FINANCIAL STATEMENT NO. DESCRIPTION PAGE - --------- ----------- ---- 1-A Balance Sheet of NEES at Filed herewith September 30, 1995, Actual and Pro Forma (Parent Company Only) 1-B Statement of Income and Retained Filed herewith Earnings for NEES for twelve months ended September 30, 1995, Actual and Pro Forma (Parent Company Only) 2-A Consolidated Balance Sheet of NEES Filed herewith at September 30, 1995, Actual and Pro Forma 2-B Statement of Consolidated Income Filed herewith for NEES for twelve months ended September 30, 1995, Actual and Pro Forma 3-A Balance Sheet of NEERI at Filed herewith September 30, 1995, Actual and Pro Forma 3-B Statement of Loss and Retained Filed herewith Deficit for NEERI for twelve months ended September 30, 1995, Actual and Pro Forma EX-27 3 FINANCIAL DATA SCHEDULE G-1 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
OPUR1 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEET AND RELATED STATEMENTS OF INCOME, RETAINED EARNINGS AND CASH FLOWS OF NEW ENGLAND ELECTRIC RESOURCES, INC., AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 12-MOS 12-MOS DEC-31-1995 DEC-31-1995 SEP-30-1995 SEP-30-1995 PER-BOOK PRO-FORMA 0 0 1,000 61,000 828 828 226 226 0 0 2,054 62,054 1 1 0 30,000 (1,271) (1,271) 1,704 31,704 0 0 0 0 0 0 0 0 0 30,000 0 0 0 0 0 0 0 0 0 0 350 350 2,054 62,054 0 0 0 0 0 0 0 0 0 0 (1,025) 25 (1,025) 25 0 3,000 (1,025) (2,975) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total deferred charges includes other assets. Total common stockholders equity includes subordinated notes payable to the parent. Per share data is not relevant because the Company's common stock is wholly-owned by New England Electric System. EX-27 4 FINANCIAL DATA SCHEDULE G-2 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
OPUR1 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEET AND RELATED STATEMENTS OF INCOME, RETAINED EARNINGS AND CASH FLOWS OF THE NEW ENGLAND ELECTRIC SYSTEM (PARENT COMPANY), AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 12-MOS 12-MOS DEC-31-1995 DEC-31-1995 SEP-30-1995 SEP-30-1995 PER-BOOK PRO-FORMA 0 0 1,619,835 1,649,835 42,423 12,423 2,281 2,281 0 0 1,664,539 1,664,539 64,969 64,969 736,567 736,567 820,090 820,090 1,621,626 1,621,626 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 42,913 42,913 1,664,539 1,664,539 0 0 0 0 0 0 0 0 0 0 192,990 192,990 192,990 192,990 259 259 192,731 192,731 0 0 192,731 192,731 151,326 151,326 0 0 0 0 0 0 0 0 EX-27 5 FINANCIAL DATA SCHEDULE G-3
OPUR1 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED BALANCE SHEET AND RELATED CONSOLIDATED STATEMENTS OF INCOME, RETAINED EARNINGS AND CASH FLOWS OF NEW ENGLAND ELECTRIC SYSTEM, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 12-MOS 12-MOS DEC-31-1995 DEC-31-1994 SEP-30-1995 SEP-30-1994 PER-BOOK PRO-FORMA 3,834,159 3,834,159 385,374 415,374 501,419 501,419 426,849 426,849 0 0 5,147,801 5,177,801 64,970 64,970 736,823 736,823 820,090 820,090 1,620,367 1,620,367 0 0 147,016 147,016 1,639,356 1,669,356 192,600 192,600 0 0 0 0 22,520 22,520 0 0 0 0 0 0 1,525,942 1,525,942 5,147,801 5,177,801 2,248,401 2,248,401 117,670 116,620 1,832,580 1,832,580 1,950,250 1,949,200 298,151 299,201 17,752 17,752 315,903 316,953 106,751 109,751 192,731 190,781 8,689 8,689 192,731 190,781 151,326 151,326 105,284 108,284 401,167 399,217 $2.97 $2.94 $2.97 $2.94 Total deferred charges includes other assets and accrued Yankee Atomic costs. Preferred stock reflects preferred stock of subsidiaries. Preferred stock dividends reflect preferred stock dividends of subsidiaries. Short-term notes includes commercial paper obligations and notes payable to banks. Total common stockholders equity is reflected net of treasury stock at cost. EX-99 6 FINANCIAL STATEMENT 1-A
Financial Statement 1-A Page 1 of 2 NEW ENGLAND ELECTRIC SYSTEM (Parent Company Only) Balance Sheet At September 30, 1995 (Actual and Pro Forma) (Unaudited) ASSETS ------
ActualAdjustments Pro Forma ----------------- --------- (In Thousands) Investments: Common stocks of subsidiaries, at equity $1,564,667 $ 30,000$1,594,667 Notes of subsidiaries 52,842 52,842 Other investments 2,326 2,326 ---------- ------------------ Total investments 1,619,835 30,000 1,649,835 ---------- ------------------ Current assets: Cash 16 (16) Temporary cash investments - subsidiary companies 33,875 (29,984) 3,891 Interest and dividends receivable of subsidiaries 8,454 8,454 Other current assets 78 78 ---------- ------------------ Total current assets 42,423 (30,000) 12,423 ---------- ------------------ Deferred federal income taxes 2,281 2,281 ---------- ------------------ $1,664,539 $ -0-$1,664,539 ========== ================== CAPITALIZATION AND LIABILITIES ------------------------------ Common share equity: Common shares, par value $1 per share: Authorized - 150,000,000 shares Issued - 64,969,652 shares $ 64,969 $ 64,969 Paid-in capital 736,567 736,567 Retained earnings (including $588,695,000 of undistributed subsidiary earnings) 820,090 820,090 ----------------------------- Total common share equity 1,621,626 1,621,626 ----------------------------- Current liabilities: Accounts payable (including $33,000 to subsidiaries) 701 701 Other accrued expenses 1,430 1,430 Dividends payable 34,843 34,843 ---------- ------------------ Total current liabilities 36,974 36,974 ---------- ------------------ deferred credits 5,939 5,939 ---------- ------------------ $1,664,539 $ -0-$1,664,539 ========== ==================
Financial Statement 1-A Page 2 of 2 NEW ENGLAND ELECTRIC SYSTEM (Parent Company Only) The pro forma adjustments to show the estimated effect of the proposed transactions on the foregoing Balance Sheet at September 30, 1995 are as follows: Debit - Common stocks of subsidiaries at equity $30,000,000 Credit - Cash $ 16,000 Temporary cash investments - subsidiary companies $29,984,000 To reflect a capital contribution to New England Electric Resources, Inc. through the utilization of cash and temporary cash investments of subsidiaries. EX-99 7 FINANCIAL STATEMENT 1-B Financial Statement 1-B Page 1 of 1 NEW ENGLAND ELECTRIC SYSTEM (Parent Company Only) Statement of Income Twelve Months Ended September 30, 1995 (Unaudited) (In Thousands) Equity in earnings of subsidiaries $ 195,852 Interest income - subsidiaries 479 --------- Total income from subsidiaries 196,331 Other income 67 --------- Total income 196,398 Corporate and fiscal expenses (includes $1,752,000 for cost of services billed by an affiliated company) 3,054 Federal income taxes 354 --------- Income before interest 192,990 Interest 259 --------- Net income $ 192,731 ========= Statement of Retained Earnings Retained earnings at beginning of period $ 778,685 Net income 192,731 Dividends declared on common shares (151,326) --------- Retained earnings at end of period $ 820,090 ========= EX-99 8 FINANCIAL STATEMENT 2-A Financial Statement 2-A Page 1 of 2 NEW ENGLAND ELECTRIC SYSTEM AND SUBSIDIARIES Consolidated Balance Sheet At September 30, 1995 (Actual and Pro Forma) (Unaudited) ASSETS ------
ActualAdjustments Pro Forma ----------------- --------- (In Thousands) Utility plant, at original cost $ 5,240,449 $5,240,449 Less accumulated provisions for depreciation and amortization 1,701,562 1,701,562 ----------- ------------------ 3,538,887 3,538,887 Net investment in Seabrook 1 under rate settlement 19,012 19,012 Construction work in progress 276,260 276,260 ----------- ------------------ Net utility plant 3,834,159 3,834,159 ----------- ------------------ Oil and gas properties, at full cost 1,260,927 1,260,927 Less accumulated provision for amortization 1,018,531 1,018,531 ----------- ------------------ Net oil and gas properties 242,396 242,396 ----------- ------------------ Investments: Nuclear power companies, at equity 47,080 47,080 Other subsidiaries, at equity 40,790 $ 30,000 70,790 Other investments, at cost 55,108 55,108 ----------- ------------------ Total investments 142,978 30,000 172,978 ----------- ------------------ Current assets: Cash 7,795 7,795 Accounts receivable, less reserves of $18,910,000 268,548 268,548 Unbilled revenues 47,300 47,300 Fuel, materials and supplies, at average cost 99,269 99,269 Prepaid and other current assets 78,507 78,507 ----------- ------------------ Total current assets 501,419 501,419 ----------- ------------------ Accrued Yankee Atomic costs 104,257 104,257 Deferred charges and other assets 322,592 322,592 ----------- ------------------ $ 5,147,801 $ 30,000$5,177,801 =========== ================== CAPITALIZATION AND LIABILITIES ------------------------------ Capitalization: Common share equity: Common shares, par value $1 per share: Authorized - 150,000,000 shares Issued - 64,969,652 shares $ 64,970 $ 64,970 Paid-in capital 736,823 736,823 Retained earnings 820,090 820,090 ----------- ------------------ 1,621,883 1,621,883 Less 45,196 shares of treasury stock, at cost 1,516 1,516 ----------- ------------------ Total common share equity 1,620,367 1,620,367 Minority interests in consolidated subsidiaries 49,620 49,620 Cumulative preferred stock of subsidiaries 147,016 147,016 Long-term debt 1,639,356 $ 30,0001,669,356 ----------- ------------------ Total capitalization 3,456,359 30,0003,486,359 ----------- ------------------ Current liabilities: Long-term debt due within one year 22,520 22,520 Short-term debt 192,600 192,600 Accounts payable 141,414 141,414 Accrued taxes 25,731 25,731 Accrued interest 23,469 23,469 Dividends payable 39,262 39,262 Other current liabilities 92,562 92,562 ----------- ------------------ Total current liabilities 537,558 537,558 ----------- ------------------ Deferred federal and state income taxes 765,366 765,366 Unamortized investment tax credits 92,910 92,910 Accrued Yankee Atomic costs 104,257 104,257 Other reserves and deferred credits 191,351 191,351 ----------- ------------------ $ 5,147,801 $ 30,000$5,177,801 =========== ==================
Financial Statement 2-A Page 2 of 2 NEW ENGLAND ELECTRIC SYSTEM AND SUBSIDIARIES The pro forma adjustments to show the estimated effect of the proposed transaction on the foregoing consolidated Balance Sheet at September 30, 1995 are as follows: Debit - Cash $30,000,000 Credit - Long-term debt $30,000,000 To reflect the receipt of cash through the issuance of long-term debt by a wholly-owned subsidiary. Debit - Other subsidiaries, at equity $30,000,000 Credit - Cash $30,000,000 To reflect the use of proceeds from the above issuance of long-term notes to fund a proposed investment in a wholly-owned subsidiary. EX-99 9 FINANCIAL STATEMENT 2-B Financial Statement 2-B Page 1 of 2 NEW ENGLAND ELECTRIC SYSTEM AND SUBSIDIARIES Statement of Consolidated Income Twelve Months Ended September 30, 1995 (Actual and Pro Forma) (Unaudited)
Actual AdjustmentsPro Forma ------ -------------------- (In Thousands) Operating revenue $2,248,401 $2,248,401 ---------- ------- ---------- Operating expenses: Fuel for generation 221,209 221,209 Purchased electric energy 554,381 554,381 Other operation 506,576 506,576 Maintenance 154,850 154,850 Depreciation and amortization 269,265 269,265 Taxes, other than income taxes 126,299 126,299 Income taxes 117,670 $(1,050) 116,620 ---------- ------- ---------- Total operating expenses 1,950,250 (1,050) 1,949,200 ---------- ------- ---------- Operating income 298,151 1,050 299,201 Other income: Allowance for equity funds used during construction 10,690 10,690 Equity in income of generating companies 9,728 9,728 Other income (expense) - net (2,666) (2,666) ---------- ------- ---------- Operating and other income 315,903 1,050 316,953 ---------- ------- ---------- Interest: Interest on long-term debt 105,284 3,000 108,284 Other interest 14,961 14,961 Allowance for borrowed funds used during construction (13,494) (13,494) ---------- ------- ---------- Total interest 106,751 3,000 109,751 ---------- ------- ---------- Income after interest 209,152 (1,950) 207,202 Preferred dividends of subsidiaries 8,689 8,689 Minority interests 7,732 7,732 ---------- ------- ---------- Net income $ 192,731 $(1,950)$ 190,781 ========== ======= ========== Average common shares 64,955,646 64,955,646 Net income per common share $2.97 $(0.03) $2.94 Statement of Retained Earnings (Actual and Pro Forma) Retained earnings at beginning of period $ 778,685 $ 778,685 Net income 192,731 $(1,950) 190,781 Dividends declared on common shares (151,326) (151,326) ---------- ------- ---------- Retained earnings at end of period $ 820,090 $(1,950) $ 818,140 ========== ======= ==========
Financial Statement 2-B Page 2 of 2 NEW ENGLAND ELECTRIC SYSTEM AND SUBSIDIARIES The pro forma adjustments to show the estimated effect of the proposed transaction on the foregoing consolidated Income Statement for the twelve months ended September 30, 1995 are as follows: Debit - Interest on long-term debt $3,000,000 Amount calculated on $30,000,000 principal amount of New Note issue at an assumed interest rate of 10 percent. Credit - Income taxes $1,050,000 To reflect the federal income tax effect as a result of the above adjustment to interest expense. EX-99 10 FINANCIAL STATEMENT 3-A Financial Statement 3-A Page 1 of 2 NEW ENGLAND ELECTRIC RESOURCES, INC. Balance Sheet At September 30, 1995 (Actual and Pro Forma) (Unaudited) ASSETS ------
ActualAdjustmentsPro Forma -------------------------- (In Thousands) Investments: Common stock of subsidiary, at equity $ 60,000 $ 60,000 Other investments, at cost $ 1,000 1,000 ------- -------- -------- Total 1,000 60,000 61,000 ------- -------- -------- Current assets: Cash 171 171 Accounts receivable 299 299 Tax benefit receivable 358 358 ------- -------- -------- Total current assets 828 828 ------- -------- -------- Deferred charges and other assets 226 226 ------- -------- -------- $ 2,054 $ 60,000 $ 62,054 ======= ======== ======== PARENT COMPANY'S INVESTMENT AND LIABILITIES ------------------------------------------- Common stock, par value $1 per share $ 1 $ 1 Subordinated notes payable to parent 2,974 2,974 Other paid-in capital $ 30,000 30,000 Retained deficit (1,271) (1,271) ------- -------- -------- Total 1,704 30,000 31,704 Long-term notes 30,000 30,000 ------- -------- -------- Total capitalization 1,704 60,000 61,704 ------- -------- -------- Current liabilities: Accounts payable to associated companies 36 36 Accounts payable 15 15 ------- -------- -------- Total current liabilities 51 51 ------- -------- -------- Deferred income taxes 299 299 ------- -------- -------- $ 2,054 $ 60,000 $ 62,054 ======= ======== ========
Financial Statement 3-A Page 2 of 2 NEW ENGLAND ELECTRIC RESOURCES, INC. The pro forma adjustments to show the estimated effect of the proposed transactions on the foregoing Balance Sheet at September 30, 1995 are as follows: Debit - Cash $30,000,000 Credit - Other paid-in capital $30,000,000 To reflect the receipt of a capital contribution from New England Electric System. Debit - Cash $30,000,000 Credit - Long-term notes $30,000,000 To reflect the receipt of cash through the issuance of long-term notes by the wholly-owned subsidiary. Debit - Common stock of subsidiary, at equity $60,000,000 Credit - Cash $60,000,000 To reflect the use of the above capital contribution and proceeds from the issuance of long-term notes to fund a proposed investment in a wholly-owned subsidiary. Note: The pro forma financials assume $30 million capital contribution from New England Electric System to New England Electric Resources, Inc. and $30 million non-recourse debt financing from third parties to a wholly-owned subsidiary of New England Electric Resources, Inc. EX-99 11 FINANCIAL STATEMENT 3-B Financial Statement 3-B Page 1 of 2 NEW ENGLAND ELECTRIC RESOURCES, INC. Statement of Loss and Retained Deficit Twelve Months Ended September 30, 1995 (Actual and Pro Forma) (Unaudited)
Actual Adjustments Pro Forma ------ ----------- --------- (In Thousands) Services rendered to nonassociated companies $ 110 $ 110 Miscellaneous loss (250) (250) ------- ------- ------- Total income (140) (140) ------- ------- ------- Outside services employed 1,559 1,559 Interest on long-term notes $ 3,000 3,000 Income taxes (674) (1,050) (1,724) ------- ------- ------- Total expense 885 1,950 2,835 ------- ------- ------- Net loss $(1,025) $(1,950) $(2,975) ======= ======= ======= Retained deficit at beginning of period $ (246) $ (246) ------- ------- ------- Retained deficit at end of period $(1,271) $(1,950) $(3,221) ======= ======= =======
Financial Statement 3-B Page 2 of 2 NEW ENGLAND ELECTRIC RESOURCES, INC. The pro forma adjustments to show the estimated effect of the proposed transactions as applied to the foregoing Statement of Loss and Retained Deficit for the twelve months ended September 30, 1995 are as follows: Debit - Interest on long-term notes $3,000,000 Amount calculated on $30,000,000 principal amount of New Note issue at assumed interest rate of 10 percent. Credit - Income taxes $1,050,000 To reflect the federal income tax effect as a result of the above adjustment to interest expense. -----END PRIVACY-ENHANCED MESSAGE-----