-----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, MEruV8rqVJ9bxpIwPguDtsjc0u7FD3syOvULRPLl0Tg9R5joZEg0phJZ3z+vpCYj ph9mdNGBqup7Gsowfdw54Q== 0000072741-01-000030.txt : 20010224 0000072741-01-000030.hdr.sgml : 20010224 ACCESSION NUMBER: 0000072741-01-000030 CONFORMED SUBMISSION TYPE: U-1/A PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20010216 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: U-1/A SEC ACT: SEC FILE NUMBER: 070-09839 FILM NUMBER: 1549412 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 U-1/A 1 0001.txt AMENDMENT NO. 1 TO FORM U-1 NO. 70-9839 SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 AMENDMENT NO.1 TO APPLICATION/DECLARATION ON FORM U-1 UNDER THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 Northeast Utilities Western Massachusetts Electric Company 174 Brush Hill Road West Springfield, MA 01089 The Connecticut Light and Power Company 107 Selden Street Berlin, CT 06037 (Names of companies filing this statement and addresses of principal executive offices) NORTHEAST UTILITIES (Name of top registered holding company) Cheryl W. Grise Senior Vice President, Secretary and General Counsel Northeast Utilities Service Company 107 Selden Street Berlin, CT 06037 (Name and address of agent for service) The Commission is requested to mail signed copies of all orders, notices and communications to: Jeffrey C. Miller, Esq. David R. McHale Assistant General Counsel Vice President and Treasurer Northeast Utilities Service Northeast Utilities Service Company Company 107 Selden Street 107 Selden Street Berlin, CT 06037 Berlin, CT 06037 The Application/Declaration in this File is hereby amended to include the following exhibits. ITEM 6 EXHIBITS AND FINANCIAL STATEMENTS (double asterisked (**) items have been provided with the original Application) 30. (a) Exhibits F. Opinion of Counsel G. Financial Data Schedules H. Proposed Form of Notice I. CL&P Mortgage Indenture Dividend Covenant** J. Common Equity Ratios** (b) Financial Statements* 1 Northeast Utilities and Subsidiaries (consolidated) 1.1 Balance Sheet, per books and pro forma, as of September 30, 2000. 1.2 Statement of Income, per books and pro forma, for 12 months September 30, 2000 and capital structure, per books and pro forma, as of September 30, 2000. 2 The Connecticut Light and Power Company 2.1 Balance Sheet, per books and pro forma, as of September 30, 2000 2.2 Statement of Income and Surplus, per books and pro forma, for 12 months ended September 30, 2000 and capital structure, per books and pro forma, as of September 30, 2000. 3 Western Massachusetts Electric Company 3.1 Balance Sheet, per books and pro forma, as of September 30, 2000. 3.2 Statement of Income and Surplus, per books and pro forma, for 12 months ended September 30, 2000 and capital structure, per books and pro forma, as of September 30, 2000. * To be filed by amendment SIGNATURES Pursuant to the requirements of the Public Utility Holding Company Act of 1935, as amended, the undersigned companies have duly caused this statement to be signed on their behalf by the undersigned thereunto duly authorized. NORTHEAST UTILITIES WESTERN MASSACHUSETTS ELECTRIC COMPANY THE CONNECTICUT LIGHT AND POWER COMPANY By: /S/ Randy A. Shoop Name: Randy A. Shoop Title: Assistant Treasurer - Finance - Northeast Utilities Service Company, as Agent for the above named companies. Date: February 16, 2001 EX-5 2 0002.txt EXHIBIT F - OPINION OF COUNSEL Exhibit F February 16, 2001 Securities and Exchange Commission 450 Fifth Street, N.W. Washington, D.C. 20549 Re: Northeast Utilities SEC File Number 70-09839 Ladies and Gentlemen: I am Assistant General Counsel of Northeast Utilities Service Company ("NUSCO"), a service company affiliate of Northeast Utilities ("NU"). I have acted as counsel for NU and its wholly-owned public utility subsidiaries, The Connecticut Light and Power Company ("CL&P) and Western Massachusetts Electric Company ("WMECO", and collectively with NU and CL&P, the "Applicants") in connection with Form U-1 in File No. 70-09839 ("Declaration"). In the Declaration, the Applicants sought the approval of the Commission for the proposed transaction described therein. Specifically, the Applicants sought Commission approval of (a) the payment of dividends to, and/or the repurchase of stock from, NU out of capital or unearned surplus by CL&P and WMECO derived from the sale of certain nuclear assets and (b) the payment of dividends to, and/or the repurchase of stock from, NU out of capital or unearned surplus by CL&P under its Mortgage Indenture dividend covenant (collectively, the "Proposed Transactions"). In connection with this opinion, I have examined or caused to be examined by counsel associated with or engaged by me, including counsel who are employed by NUSCO, originals or copies certified to my satisfaction of such corporate records of the Applicants, certificates of public officials and of officers of the Applicants, and agreements, instruments and other documents, as I have deemed necessary as a basis for the opinions expressed below. In my examination of such agreements, instruments and documents, I have assumed the genuineness of all signatures, the authenticity of all agreements, instruments and documents submitted to me as originals, and the conformity to original agreements, instruments and documents of all agreements, instruments and documents submitted to me as certified, conformed or photostatic copies and the authenticity of the originals of such copies. The opinions set forth herein are limited to the laws of the Commonwealth of Massachusetts, the State of Connecticut and the federal laws of the United States. I am a member of the bar of the State of New York. I am not a member of the bar of the Commonwealth of Massachusetts nor of the bar of the State of Connecticut, and do not hold myself out as an expert in the laws of such Commonwealth and State. In expressing opinions about matters governed by the laws of the Commonwealth of Massachusetts, I have consulted with counsel who are employed by NUSCO and are members of the bar of such Commonwealth. In expressing opinions about matters governed by the laws of the State of Connecticut, I have consulted with counsel who are employed by NUSCO and are members of the bar of such State. Based upon and subject to the foregoing, and assuming that the Proposed Transactions are carried out in accordance with the Declaration, I am of the opinion that, when the Commission shall have entered an order forthwith granting the Declaration: (a) all State laws applicable to the Proposed Transactions will have been complied with; (b) each of the Applicants is validly organized and existing under the laws of its state of organization; (c) CL&P and WMECO will legally acquire the shares of their respective stock, if any, being repurchased from NU; and (d) the consummation of the Proposed Transactions will not violate the legal rights of the holders of any securities issued by NU or any associate company thereof. I hereby consent to the filing of this opinion as an exhibit to the Declaration and in any proceedings before the Commission that may be held in connection therewith. Very truly yours, /S/Jeffrey C. Miller Assistant General Counsel EX-99 3 0003.txt EXHIBIT H - PROPOSED FORM OF NOTICE EXHIBIT H Form Of Notice Northeast Utilities, et al. (70-9839) Northeast Utilities ("NU"), a registered public utility holding company, Western Massachusetts Electric Company ("WMECO"), an electric utility subsidiary of NU, both located at 174 Brush Hill Avenue, West Springfield, Massachusetts 01090 and The Connecticut Light and Power Company ("CL&P"), an electric utility subsidiary of NU located at 107 Selden Street, Berlin Connecticut 06037 (collectively, "Applicants") have filed an application- declaration under sections 6(a), 7, 9(a), 10 and 12(c) of the Act and rules 46(a) and 54 under the Act. Applicants request authorization, through December 31, 2004, for: (1) CL&P to pay dividends to and/or repurchase stock from NU out of capital or unearned surplus in an amount not to exceed $100 million using proceeds from the sale of nuclear generating facilities ("Millstone"); (2) CL&P to pay dividends and/or repurchase stock in accordance with the provisions of CL&P's dividend covenant under its first mortgage indenture and deed of trust ("Mortgage Indenture") dated May 1, 1921 to the Bankers Trust Company as trustee; and (3) WMECO to pay dividends to and/or repurchase stock from NU out of capital or unearned surplus in an amount not to exceed $21 million using proceeds from the sale of nuclear generating facilities. _______________________ The Mortgage Indenture provides, among other things, that cash dividends may not be paid on the capital stock of CL&P, or distributions made, or capital stock purchased by CL&P, in an aggregate amount which exceeds CL&P's earned surplus after December 31, 1966, plus the earned surplus of CL&P accumulated prior to January 1, 1967 in an amount not exceeding $13,500,000, plus such additional amount as may be authorized or approved by the Commission under the Act. _________________________ Applicants note that each of the states in which CL&P and WMECO (collectively, "Utilities") operate, i.e., Connecticut and Massachusetts, has enacted restructuring legislation ("Restructuring Legislation") that is intended to deregulate the electric utility industry and provide retail customers with a choice of electricity providers. The Restructuring Legislation strongly encourages the Utilities to, among other things, divest their nuclear generating assets and requires them to divest their non-nuclear generating assets. Pursuant to the Restructuring Legislation, the non-nuclear electric generating assets of CL&P and WMECO have been sold. In addition to the proceeds raised from these sales of generating assets, CL&P and WMECO will also receive proceeds from the issuance of rate reduction bonds ("RRBs") as part of the restructuring process. In a previous proceeding under the Act (Northeast Utilities, et al, File No. 70-9541, granted and permitted to become effective in HCAR No. 27147 (March 7, 2000)), the Utilities sought and were granted authorization, among other things, to pay dividends to, and/or repurchase shares of their respective stock from, NU out of capital or unearned surplus using the proceeds from the sale of non-nuclear generating assets and the issuance of RRBs notwithstanding the lack of sufficient retained earnings. The Applicants state that the sale of nuclear assets was not foreseen at the time of such filing as resulting in any substantial net cash to the Utilities. The Utilities are in the process of selling Millstone and the Applicants state that a dramatic positive change in the market for nuclear plants has created the need for this filing. The application in this file deals with the use of proceeds from the sale of Millstone. Applicants state that this filing is a result of the same factors that led to the filing in 70-9541. As a result of the proposed sale of Millstone, the Utilities will experience a significant influx of cash without a corresponding increase in retained earnings. To achieve the cost reduction goals of the Restructuring Legislation, Applicants propose to reduce their common equity capitalizations using a portion of such proceeds. Applicants note that as a result of the proposed transactions and the issuance of rate reduction bonds, and the accounting treatment of the debt relating thereto, the equity-to-capitalization ratio of CL&P and of NU, on a consolidated basis, is expected to fall below the Commission's 30% equity standard. . It is expected that NU's common equity ratio on a consolidated basis will be above 30% by December 31, 2002 but that CL&P's common equity ratio will remain below 30% through the Authorization Period. ___________________________ See Georgia Pacific Co., 45 S.E.C. 610, 615 (1974). ___________________________ Applicants state that the payment of dividends would not impair the financial integrity of CL&P or WMECO because, after the payment of these dividends, each Utility would still have adequate cash to operate its substantially smaller business. The Application is available for public inspection through the Commission's Office of Public Reference. Any interested persons wishing to comment or request a hearing on the Applications should submit their views in writing by ____________, 2001, to the Secretary, Securities and Exchange Commission, Washington D.C. 20549, and serve a copy on the Applicants at the addresses specified above. Proof of service (by affidavit or, in the case of an attorney at law, by certificate) should be filed with the request. Any request for hearing shall identify specifically the issues of fact or law that are disputed. A person who so requests will be notified of any hearing, if ordered, and will receive a copy of any notice or order issued in this matter. After said date, the Application, as filed, or as it may be amended, may be permitted to become effective. For the Commission, by the Division of Investment Management, pursuant to delegated authority. ________________________________ Secretary -----END PRIVACY-ENHANCED MESSAGE-----