-----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, Qj6E7SfFTI0mEhjP3BRqFCQ8CPxihyzJTSgw0oottvixLWMKSNJCqMbJR1kdjech obZZI4X5QdL4LWhhkxwtnQ== 0000072741-98-000162.txt : 19981130 0000072741-98-000162.hdr.sgml : 19981130 ACCESSION NUMBER: 0000072741-98-000162 CONFORMED SUBMISSION TYPE: 35-CERT PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19981127 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: 98760625 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, December 30, 1997, File No. 70-8507). (1) BALANCE SHEET AS OF SEPTEMBER 30, 1998: Attached as Exhibit A. (2) TWELVE MONTH INCOME STATEMENT ENDING SEPTEMBER 30, 1998: Attached as Exhibit B. (3) GENERAL DESCRIPTION OF THE ACTIVITIES OF CHARTER OAK FOR THE QUARTER ENDED SEPTEMBER 30, 1998, AND OF THE PROJECTS IN WHICH CHARTER OAK OR ITS SUBSIDIARIES HAVE AN INTEREST: During the third 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) and 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 SEPTEMBER 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 September 30, 1998 is approximately $3.4 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/ John H. Forsgren Executive Vice President and Chief Financial Officer Charter Oak Energy, Inc. P.O. Box 270 Hartford, CT 06141-0270 November 23, 1998 EXHIBIT A CHARTER OAK ENERGY, INC. AND SUBSIDIARIES ----------------------------------------- CONSOLIDATED BALANCE SHEETS (UNAUDITED) --------------------------------------- September 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 1,760 1,086 Accounts receivable 312 31 Accounts receivable from affiliated companies 2 - Taxes receivable 3,558 3,457 Investments held for sale 20,380 78,417 ------------ ------------ 26,012 82,991 ------------ ------------ Deferred Charges: Accumulated deferred income taxes 1,293 2,559 Deferred development costs 3,488 5,282 Other 253 413 ------------ ------------ 5,034 8,254 ------------ ------------ Total Assets $ 31,046 $ 91,246 ============ ============ CAPITALIZATION AND LIABILITIES - ------------------------------ Capitalization: Common stock $ - $ - Capital surplus, paid in 92,744 118,406 Retained earnings (61,964) (29,767) ------------ ------------ Total capitalization 30,780 88,639 ------------ ------------ Minority interest in common equity of subsidiaries - (145) ------------ ------------ Current Liabilities: Accounts payable 84 132 Accounts payable to affiliated companies 153 191 Taxes accrued 11 658 Other 18 1,771 ------------ ------------ 266 2,752 ------------ ----------- Total Capitalization and Liabilities $ 31,046 $ 91,246 ============ ============ EXHIBIT B CHARTER OAK ENERGY, INC. AND SUBSIDIARIES ----------------------------------------- CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) --------------------------------------------- Twelve Months Ended September 30, --------------------------- 1998 1997 ------------ ------------ (Thousands of Dollars) Operating Revenues $ - $ - ------------ ------------ Operating Expenses: Operation and maintenance (1,490) 12,795 Depreciation 58 780 Federal and state income taxes (1,386) (5,004) Taxes other than income taxes 211 66 ------------ ------------ Total operating expenses 165 8,637 ------------ ------------ Operating Loss (165) (8,637) ------------ ------------ Other (Loss)/Income: Investment (loss)/income (6,685) (2,595) Other, net ( 973) (1,057) Net gain on sale of investments 634 - Reserve for the loss on sale of COE Corp's investment in Ave Fenix Energia, S.A. (25,000) - ------------ ------------ Total other (loss)/income (32,024) 3,652 ------------ ------------ Loss before interest charges (32,189) (12,289) ------------ ------------ Interest Charges 7 21 ------------ ------------ Net Loss $ (32,196) $ (12,310) ============ ============ EXHIBIT C Charter Oak Energy and Subsidiaries Detail of Intercompany Services Twelve Months Ended September 30, 1998 Charter Oak Energy ------------------ NON- Service Provided By- Type of Services Provided- PAYROLL PAYROLL TOTAL - ----------------------------------------------------------------------------- NUSCO Charter Oak staff 2,880,136 469,293 3,349,429 Accounting and financial services 17,702 3,869 21,571 Legal services 6,336 12,786 19,122 Miscellaneous 11,314 1,590 12,904 ------------------------------ Total NUSCO Services 2,915,488 487,538 3,403,026 ------------------------------ NU PARENT Fee for sale of companies 0 0 0 ------------------------------ Total NU PARENT Services 0 0 0 CL&P Reallocate Refund of CCBT Audit 0 (75,518) (75,518) Employee Expenses 1,654 2,527 4,181 Outside Services 0 8 8 Miscellaneous 0 0 0 State of Connecticut Tax 0 1,071 1,071 ------------------------------ Total CL&P Services 1,654 (71,912) (70,258) ------------------------------ COE TEJONA Outside Services 0 550,000 550,000 ------------------------------ Total COE Tejona Services 0 550,000 550,000 ------------------------------ CHARTER OAK DEVELOPMENT CORP Legal services 0 457,390 457,390 CT Use Tax Recoupment 0 0 0 Outside Services 0 4,850 4,850 Miscellaneous 0 0 0 ------------------------------ Total COD Services 0 462,240 462,240 ------------------------------ Total Services Provided 2,917,142 1,427,866 4,345,008 ============================== COE Development Corp. --------------------- NON- Service Provided By- Type of Services Provided- PAYROLL PAYROLL TOTAL - ----------------------------------------------------------------------------- NUSCO Charter Oak staff 45,340 37,155 82,495 Legal services 0 0 0 Miscellaneous 85 0 85 ------------------------------ Total NUSCO Services 45,425 37,155 82,580 ------------------------------ 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 0 0 CT Use Tax Adjustment 0 0 0 Outside Services 0 11 11 ------------------------------ Total COE Services 0 11 11 ------------------------------ COE TEJONA CORP. Outside Services 0 (65) (65) ------------------------------ Total COE Tejona Services 0 (65) (65) ------------------------------ Total Services Provided 47,011 627,165 674,176 ============================== COE (UK) Corp. -------------- NON- Service Provided By- Type of Services Provided- PAYROLL PAYROLL TOTAL - --------------------------------------------------------------------------- NUSCO Charter Oak staff 0 0 0 Accounting and Financial Services 0 0 0 ------------------------------ Total NUSCO services 0 0 0 ------------------------------ CHARTER OAK DEVELOPMENT CORP. Outside Services 0 (23) (23) ------------------------------ Total COD services 0 (23) (23) ------------------------------ Total Services Provided 0 (23) (23) ============================== COE Argentina I Corp. ---------------------- NON- Service Provided By- Type of Services Provided- PAYROLL PAYROLL TOTAL - -------------------------------------------------------------------------- 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 By- Type of Services Provided- PAYROLL PAYROLL TOTAL - -------------------------------------------------------------------------- NUSCO Charter Oak Staff 0 (10,928) (10,928) ----------------------------- Total NUSCO Services 0 (10,928) (10,928) 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 6,759 6,759 ------------------------------ Total COE Development Services 0 6,759 6,759 Total Services Provided 0 (10,417) (10,417) ============================== COE Tejona Corp. ---------------- NON- Service Provided By- Type of Services Provided- PAYROLL PAYROLL TOTAL - --------------------------------------------------------------------------- NUSCO Miscellaneous 355 0 355 Internal Audit 1,085 0 1,085 Wholesale Marketing 8,276 1,269 9,545 Charter Oak Staff 64,655 3,331 67,986 Legal Services 0 0 0 ------------------------------ Total NUSCO Services 74,371 4,600 78,971 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 1,823 1,823 Outside Services 0 64 64 CT Use Tax Recoupment 0 0 0 Legal Services 0 0 0 ------------------------------ Total COE Development Services 0 1,887 1,887 CHARTER OAK ENERGY Legal Services 0 0 0 Outside Services 0 543 543 ------------------------------ Total COE Services 0 543 543 ------------------------------ Total Services Provided 78,693 9,195 87,888 ============================== COE AVE FENIX Corp. ---------------- NON- Service Provided By- Type of Services Provided- PAYROLL PAYROLL TOTAL - --------------------------------------------------------------------------- NUSCO Wholesale Marketing 0 19 19 Charter Oak Staff 0 0 0 Outside Services 0 63 63 ------------------------------ Total NUSCO Services 0 82 82 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 20,871 20,871 Outside Services 0 2,119 2,119 CT Use Tax Recoupment 0 0 0 ------------------------------ Total COE Development Services 0 30,100 30,100 Total Services Provided 0 30,424 30,424 ============================== -----END PRIVACY-ENHANCED MESSAGE-----