-----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, NV9OV3q4gYhLucAakCcF7x1T8AqeERKiuaewdZKy01GU84inrCvv7b4QVVlp+8eB KV6gtbyjA5GZKo/JT2NIMA== 0000072741-98-000148.txt : 19980902 0000072741-98-000148.hdr.sgml : 19980902 ACCESSION NUMBER: 0000072741-98-000148 CONFORMED SUBMISSION TYPE: 35-CERT PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19980901 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTHEAST UTILITIES SYSTEM CENTRAL INDEX KEY: 0000072741 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 042147929 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 35-CERT SEC ACT: SEC FILE NUMBER: 070-08507 FILM NUMBER: 98702301 BUSINESS ADDRESS: STREET 1: 174 BRUSH HILL AVE CITY: WEST SPRINGFIELD STATE: MA ZIP: 01090-0010 BUSINESS PHONE: 4137855871 MAIL ADDRESS: STREET 1: 107 SELDON ST CITY: BERLIN STATE: CT ZIP: 06037-1616 35-CERT 1 COE, INC. QTRYLY RPT FILING UNDER RULE 24 OF 35 ACT UNITED STATES OF AMERICA SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Application of Northeast ) ) CERTIFICATE PURSUANT TO Utilities, Charter Oak Energy ) RULE 24 UNDER THE PUBLIC ) UTILITY HOLDING COMPANY ACT Inc. and COE Development ) OF 1935 ) Corp. on Form U-1 ) ) (File No. 70-8507) ) Pursuant to the requirements of Rule 24 under the Public Utility Holding Company Act of 1935, Charter Oak Energy, Inc. ("Charter Oak"), a wholly-owned subsidiary of Northeast Utilities ("NU"), a registered holding company, hereby files this quarterly report as required by the Securities and Exchange Commission's supplemental order authorizing preliminary development activities and financing related to such activities and to acquisitions of interests in exempt wholesale generators ("EWGs") and foreign utility companies ("FUCOs") by Charter Oak (HCAR No. 26134, September 30, 1994, File No. 70-8062, HCAR No. 26213, December 30, 1994, File No. 70-8507, and HCAR No. 26354, August 7, 1995, File No. 70-8507, HCAR No. 26623, December 12, 1996, File No. 70-8507 HCAR No. 26810, and December 30, 1997, File No. 70-8507). (1) BALANCE SHEET AS OF JUNE 30, 1998: Attached as Exhibit A. (2) TWELVE MONTH INCOME STATEMENT ENDING JUNE 30, 1998: Attached as Exhibit B. (3) GENERAL DESCRIPTION OF THE ACTIVITIES OF CHARTER OAK FOR THE QUARTER ENDED JUNE 30, 1998, AND OF THE PROJECTS IN WHICH CHARTER OAK OR ITS SUBSIDIARIES HAVE AN INTEREST: During the secon quarter of 1998, pursuant to the permission granted by the Commission in the September 30, 1994 (HCAR. No. 26134), December 30, 1994 (HCAR. No. 26213), August 7, 1995 (HCAR. No. 26354) December 12, 1996 (HCAR. No. 26623) and December 30, 1997 (HCAR No. 26810) orders, Charter Oak, through its wholly-owned subsidiary COE Development Corporation ("COE Development"), has participated in limited preliminary development activities for EWGs and FUCOs, primarily to preserve existing value in these projects. These activities have been performed by COE Development both on its own and with unaffiliated third parties. On August 7, 1995 the Commission authorized NU to make investments in Charter Oak, and Charter Oak to make investments in COE Development, in the amount of up to $400 million, through December 31, 1996, for preliminary development activities and for acquisitions of interests in EWGs and FUCOs. This authorization includes preliminary development of domestic projects as well as investments in EWGs and FUCOs. On December 12, 1996, this authority was extended to December 31, 1997 with the authorized amount of investment reduced to $200 million. The Commission extended the authority to December 31, 1998 on December 30, 1997. On December 5, 1995, Charter Oak filed a Form U-57 notifying the Commission of foreign utility company status for Ave Fenix Energia S.A. ("Ave Fenix"), the 168 MW natural gas project in the Republic of Argentina. Charter Oak through its wholly-owned subsidiary COE Ave Fenix Corporation, will own approximately 83% of the issued and outstanding common stock of Ave Fenix. On January 27, 1997, Ave Fenix closed on a $44 million term loan. Charter Oak is in the process of selling its interest in this project. On June 24, 1996, the Plantas Eolicas S.A., the 20 MW wind project in Costa Rica, synchronized with the grid. Charter Oak, through its wholly-owned subsidiary COE Tejona Corporation, will own approximately 65% of the issued and outstanding common stock of Plantas Eolicas. It is anticipated that a Costa Rican company will hold the remaining 35% of the common stock of Plantas Eolicas. Charter Oak sold its interest in this project on May 5, 1998 and filed a Form U-57/A on May 27, 1998 notifying the Securities and Exchange Commission that Plantas Eolicas no longer requires Foreign Utility Company status with respect to Northeast Utilities and its subsidiaries. At this time, none of the other projects Charter Oak is currently pursuing are sufficiently defined to move beyond the preliminary development stage and therefore are not contained in this report. (4) THE AMOUNTS OF RECOURSE AND NON-RECOURSE DEBT SECURITIES ISSUED TO THIRD PARTIES BY INTERMEDIATE COMPANIES: N.A. (5) REGULATORY STATUS OF FACILITIES ELIGIBLE FOR EXEMPTION AS A PUBLIC UTILITY UNDER THE ACT. N.A. (6) INFORMATION ON INTERCOMPANY SERVICE TRANSACTIONS INVOLVING AFFILIATED INTERMEDIATE COMPANIES, EWGs AND FUCOs FOR THE QUARTER ENDING JUNE 30, 1998. Attached as Exhibit C. The aggregate amount of all guarantees issued by or for Charter Oak or any of its subsidiary companies for the quarter ending June 30, 1998 is approximately $2.4 million. SIGNATURE Pursuant to the requirements of the Public Utility Holding Company Act of 1935, the undersigned company has duly caused this Certificate to be signed on its behalf by the undersigned thereunto duly authorized. Charter Oak Energy, Inc. /s/ Eugene G. Vertefeuille Principal Charter Oak Energy, Inc. P.O. Box 270 Hartford, CT 06141-0270 August 13, 1998 EXHIBIT A CHARTER OAK ENERGY, INC. AND SUBSIDIARIES ----------------------------------------- CONSOLIDATED BALANCE SHEETS (UNAUDITED) --------------------------------------- June 30, --------------------------- 1998 1997 ------------ ------------ (Thousands of Dollars) ASSETS - ------ Utility Plant, at original cost: Electric $ 52 $ 52 Less: Accumulated provision for depreciation 52 51 ------------ ------------ Total net utility plant - 1 ------------ ------------ Current Assets: Cash 216 480 Accounts receivable 671 84 Taxes receivable 3,542 2,228 Investments held for sale 21,004 87,431 ------------ ------------ 25,433 90,223 ------------ ------------ Deferred Charges: Accumulated deferred income taxes 1,200 200 Deferred development costs 3,770 7,249 Other 287 457 ------------ ------------ 5,257 7,906 ------------ ------------ Total Assets $ 30,690 $ 98,130 ============ ============ CAPITALIZATION AND LIABILITIES - ------------------------------ Capitalization: Common stock $ - $ - Capital surplus, paid in 89,944 115,991 Retained earnings (60,073) (20,221) ------------ ------------ Total capitalization 29,871 95,770 ------------ ------------ Minority interest in common equity of subsidiaries - (83) ------------ ------------ Current Liabilities: Accounts payable 246 1,304 Accounts payable to affiliated companies 514 251 Taxes accrued 15 574 Other 44 314 ------------ ------------ 819 2,443 ------------ ------------ Total Capitalization and Liabilities $ 30,690 $ 98,130 ============ ============ EXHIBIT B CHARTER OAK ENERGY, INC. AND SUBSIDIARIES ----------------------------------------- CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) --------------------------------------------- Twelve Months Ended June 30, --------------------------- 1998 1997 ------------ ------------ (Thousands of Dollars) Operating Revenues $ - $ - ------------ ------------ Operating Expenses: Operation and maintenance 6,532 5,975 Depreciation 552 450 Federal and state income taxes (2,006) (1,759) Taxes other than income taxes 238 40 ------------ ------------ Total operating expenses 5,316 4,706 ------------ ------------ Operating Loss (5,316) (4,706) ------------ ------------ Other (Loss)/Income: Investment (loss)/income (8,301) 2,060 Other, net (1,859) (89) Net gain on sale of investments 634 - Reserve for the loss on sale of COE Ave Fenix Corp's. investment in Ave Fenix Energia, S.A. (25,000) - ------------ ------------ Total other (loss)/income (34,526) 1,971 ------------ ------------ Loss before interest charges (39,842) (2,735) ------------ ------------ Interest Charges 11 21 ------------ ------------ Net Loss $ (39,853) $ (2,756) ============ ============ Charter Oak Energy and Subsidiaries Exhibit C Detail of Intercompany Services Twelve Months Ended June 30, 1998 Charter Oak Energy ------------------ NON- Service Type of Services Provided PAYROLL PAYROLL TOTAL Provided by - ----------------------------------------------------------------------------- NUSCO Charter Oak staff 3,151,452 356,510 3,507,962 Accounting and financial services 26,572 3,913 30,485 Legal services 7,540 42,178 49,718 Miscellaneous 19,376 2,009 21,385 ------------------------------ Total NUSCO Services 3,204,940 404,610 3,609,550 NU PARENT Fee for sale of companies 0 550,000 550,000 ----------------------------- Total NU PARENT Services 0 550,000 550,000 CL&P Reallocate Refund of CCBT Audit 0 (75,518) (75,518) Employee Expenses 284 331 615 Outside Services 0 8 8 State of Connecticut Tax 0 1,071 1,071 ------------------------------ Total CL&P Services 284 (74,108) (73,824) COE TEJONA Outside Services 0 428 428 ------------------------------ Total COE Tejona Services 0 428 428 CHARTER OAK DEVELOPMENT CORP Legal services 0 599,774 599,774 CT Use Tax Recoupment 0 (107,816)(107,816) Outside Services 0 4,749 4,749 Miscellaneous 0 2,517 2,517 ------------------------------ Total COD Services 0 499,224 499,224 Total Services Provided 3,205,224 1,380,154 4,585,378 ============================= COE Development Corp. --------------------- NON- Service Type of Services Provided PAYROLL PAYROLL TOTAL Provided by - ---------------------------------------------------------------------------- NUSCO Charter Oak staff 154,320 108,442 262,762 Legal services 0 20,603 20,603 Miscellaneous 247 0 247 ------------------------------ Total NUSCO Services 154,567 129,045 283,612 CL&P Employee Expenses 1,586 288 1,874 Reallocate CCB Tax Paid 1994,5,6 0 589,758 589,758 Outside Services 0 18 18 ------------------------------ Total CL&P Services 1,586 590,064 591,650 CHARTER OAK ENERGY Miscellaneous 0 16 16 CT Use Tax Adjustment 0 (5,310) (5,310) Outside Services 0 11 11 ------------------------------ Total COE Services 0 (5,283) (5,283) Total Services Provided 156,153 713,826 869,979 =========================== COE (UK) Corp. -------------- NON- Service Provided Type of Services Provided PAYROLL PAYROLL TOTAL By - ---------------------------------------------------------------------------- NUSCO Charter Oak staff 905 1,280 2,185 Accounting and Financial Services 32 0 32 ------------------------------ Total NUSCO services 937 1,280 2,217 Total Services Provided 937 1,280 2,217 ============================== COE Argentina I Corp. ---------------------- NON- Service Provided Type of Services Provided PAYROLL PAYROLL TOTAL By - --------------------------------------------------------------------------- CL&P Reallocate CCB Tax Paid 1996 0 242 242 ------------------------------ Total CL&P Services 0 242 242 Total Services Provided 0 242 242 ============================== COE Argentina II Corp. ---------------------- NON- Service Provided Type of Services Provided PAYROLL PAYROLL TOTAL By - ---------------------------------------------------------------------------- NUSCO Charter Oak Staff 8,842 (10,928) (2,086) ----------------------------- Total NUSCO Services 8,842 (10,928) (2,086) CL&P Reallocate CCB Tax Paid 1996 0 (6,248) (6,248) ------------------------------ Total CL&P Services 0 (6,248) (6,248) COE Development Outside Services 0 20,450 20,450 ------------------------------ Total COE Development Services 0 20,450 20,450 Total Services Provided 8,842 3,274 12,116 ============================== COE Tejona Corp. ---------------- NON- Service Provided Type of Services Provided PAYROLL PAYROLL TOTAL By - --------------------------------------------------------------------------- NUSCO Miscellaneous 355 0 355 Internal Audit 1,085 0 1,085 Wholesale Marketing 8,276 1,269 9,545 Charter Oak Staff 110,809 16,868 127,677 Legal Services 0 783 783 ------------------------------ Total NUSCO Services 120,525 18,920 139,445 CL&P Reallocate CCB Tax Paid 1996 0 302 302 Employee Expenses 4,322 1,863 6,185 ------------------------------ Total CL&P Services 4,322 2,165 6,487 COE Development Charter Oak Staff 0 8,645 8,645 Outside Services 0 294 294 CT Use Tax Recoupment 0 (88,256) (88,256) Legal Services 0 66 66 ------------------------------ Total COE Development Services 0 (79,251) (79,251) CHARTER OAK ENERGY Legal Services 0 115 115 Outside Services 0 543 543 ------------------------------ Total COE Services 0 658 658 Total Services Provided 124,847 (57,508) 67,339 ============================== COE AVE FENIX Corp. ---------------- NON- Service Provided Type of Services Provided PAYROLL PAYROLL TOTAL By - ----------------------------------------------------------------------------- NUSCO Wholesale Marketing 0 19 19 Charter Oak Staff 10,175 0 10,175 Outside Services 0 63 63 ------------------------------ Total NUSCO Services 10,175 82 10,257 CL&P Reallocate CCB Tax Paid 1996 0 242 242 ------------------------------ Total CL&P Services 0 242 242 COE Development Charter Oak Staff 0 9,229 9,229 Outside Services 0 22,990 22,990 CT Use Tax Recoupment 0 (51,832) (51,832) ------------------------------ Total COE Development Services 0 (19,613) (19,613) Total Services Provided 10,175 (19,289) (9,114) ============================== -----END PRIVACY-ENHANCED MESSAGE-----