-----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, Ts8j9gRZ8RPKHUYvycD8KKwStSSq9lQGTdLwzqbLX4rIjgNWlXNOilJI/RfB0InP nlYkcfISW3Pn5hSbGCwsDw== 0000072741-98-000116.txt : 19980602 0000072741-98-000116.hdr.sgml : 19980602 ACCESSION NUMBER: 0000072741-98-000116 CONFORMED SUBMISSION TYPE: 35-CERT PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19980601 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: 98640089 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). (1) BALANCE SHEET AS OF MARCH 31, 1998: Attached as Exhibit A. (2) TWELVE MONTH INCOME STATEMENT ENDING MARCH 31, 1998: Attached as Exhibit B. (3) GENERAL DESCRIPTION OF THE ACTIVITIES OF CHARTER OAK FOR THE QUARTER ENDED MARCH 31, 1998, AND OF THE PROJECTS IN WHICH CHARTER OAK OR ITS SUBSIDIARIES HAVE AN INTEREST: During the first 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) 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. 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 MARCH 31, 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 March 31, 1998 is approximately $12.5 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 May 22, 1998 EXHIBIT A CHARTER OAK ENERGY, INC. AND SUBSIDIARIES ----------------------------------------- CONSOLIDATED BALANCE SHEETS (UNAUDITED) --------------------------------------- March 31, --------------------------- 1998 1997 ------------ ------------ (Thousands of Dollars) ASSETS - ------ Utility Plant, at original cost: Electric $ 52 $ 52 Less: Accumulated provision for depreciation 52 50 ------------ ------------ Total net utility plant - 2 ------------ ------------ Current Assets: Cash 1,989 1,738 Accounts receivable - 84 Accounts receivable from affiliated companies - 9 Taxes receivable 4,603 1,843 Investments held for sale 38,382 87,286 ------------ ------------ 44,974 90,960 ------------ ------------ Deferred Charges: Accumulated deferred income taxes 1,084 130 Deferred development costs 4,053 6,611 Other 319 496 ------------ ------------ 5,456 7,237 ------------ ------------ Total Assets $ 50,430 $ 98,199 ============ ============ CAPITALIZATION AND LIABILITIES - ------------------------------ Capitalization: Common stock $ - $ - Capital surplus, paid in 109,344 115,142 Retained earnings (59,786) (19,071) ------------ ------------ Total capitalization 49,558 96,071 ------------ ------------ Minority interest in common equity of subsidiaries - (56) ------------ ------------ Current Liabilities: Accounts payable 140 474 Accounts payable to affiliated companies 693 750 Taxes accrued 25 663 Other 14 297 ------------ ------------ 872 2,184 ------------ ------------ Total Capitalization and Liabilities $ 50,430 $ 98,199 ============ ============ EXHIBIT B CHARTER OAK ENERGY, INC. AND SUBSIDIARIES ----------------------------------------- CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) --------------------------------------------- Twelve Months Ended March 31, --------------------------- 1998 1997 ------------ ------------ (Thousands of Dollars) Operating Revenues $ - $ - ------------ ------------ Operating Expenses: Operation and maintenance 7,453 5,011 Depreciation 725 443 Federal and state income taxes (3,460) (1,568) Taxes other than income taxes 248 26 ------------ ------------ Total operating expenses 4,966 3,912 ------------ ------------ Operating Loss (4,966) (3,912) ------------ ------------ Other (Loss)/Income: Investment (loss)/income (5,811) 2,002 Other, net (1,573) (75) Loss on sale of investments (3,344) - 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 (35,728) 1,927 ------------ ------------ Loss before interest charges (40,694) (1,985) ------------ ------------ Interest Charges 21 15 ------------ ------------ Net Loss $ (40,715) $ (2,000) ============ ============ EXHIBIT C Charter Oak Energy and Subsidiaries Detail of Intercompany Services Twelve Months Ended March 31, 1998 Charter Oak Energy ------------------ NON- Service Provided By- Type of Services Provided- PAYROLL PAYROLL TOTAL - ----------------------------------------------------------------------------- NUSCO Charter Oak staff 3,705,419 331,847 4,037,266 Accounting and financial services 31,612 6,310 37,922 Legal services 6,625 39,254 45,879 Miscellaneous 25,331 4,845 30,176 ------------------------------ Total NUSCO Services 3,768,987 382,256 4,151,243 ------------------------------ NU PARENT Retainer Fee 0 200,000 200,000 ------------------------------ Total NU PARENT Services 0 200,000 200,000 CL&P Miscellaneous 0 (705) (705) Reallocate Refund of CCBT Audit 0 (75,518) (75,518) State of Connecticut Tax 0 1,071 1,071 ------------------------------ Total CL&P Services 0 (75,152) (75,152) ------------------------------ COE TEJONA Outside Services 0 428 428 ------------------------------ Total COE Tejona Services 0 428 428 ------------------------------ CHARTER OAK DEVELOPMENT CORP Legal services 0 697,634 697,634 CT Use Tax Recoupment 0 (107,816) (107,816) Outside Services 0 4,749 4,749 Miscellaneous 0 11,945 11,945 ------------------------------ Total COD Services 0 606,512 606,512 ------------------------------ Total Services Provided 3,768,987 1,114,044 4,883,031 ============================== Charter Oak Paris, Inc. ----------------------- NON- Service Provided By- Type of Services Provided- PAYROLL PAYROLL TOTAL - ---------------------------------------------------------------------------- CL&P Miscellaneous 0 (7,628) (7,628) ------------------------------ Total CL&P Services 0 (7,628) (7,628) ------------------------------ Total Services Provided 0 (7,628) (7,628) ============================== COE Development Corp. --------------------- NON- Service Provided By- Type of Services Provided- PAYROLL PAYROLL TOTAL - ----------------------------------------------------------------------------- NUSCO Charter Oak staff 289,453 188,947 478,400 Legal services 0 20,758 20,758 Miscellaneous 385 0 385 ------------------------------ Total NUSCO Services 289,838 209,705 499,543 ------------------------------ CL&P Employee Expenses 1,502 288 1,790 Reallocate CCB Tax Paid 1994,5,6 0 589,758 589,758 Outside Services 0 18 18 ------------------------------ Total CL&P Services 1,502 590,064 591,566 ------------------------------ CHARTER OAK ENERGY Miscellaneous 0 149 149 CT Use Tax Adjustment 0 (5,310) (5,310) Outside Services 0 11 11 ------------------------------ Total COE Services 0 (5,150) (5,150) ------------------------------ Total Services Provided 291,340 794,619 1,085,959 ============================== COE (UK) Corp. -------------- NON- Service Provided By- Type of Services Provided- PAYROLL PAYROLL TOTAL - --------------------------------------------------------------------------- NUSCO Charter Oak staff 905 1,280 2,185 Accounting and Financial Services 103 0 103 ------------------------------ Total NUSCO services 1,008 1,280 2,288 ------------------------------ Total Services Provided 1,008 1,280 2,288 ============================== COE Argentina I Corp. ---------------------- NON- Service Provided By- Type of Services Provided- PAYROLL PAYROLL TOTAL - -------------------------------------------------------------------------- NUSCO Accounting Staff 71 0 71 ----------------------------- Total NUSCO services 71 0 71 CL&P Reallocate CCB Tax Paid 1996 0 242 242 ------------------------------ Total CL&P Services 0 242 242 Total Services Provided 71 242 313 ============================== COE (GENCOE) Corp. ---------------------- NON- Service Provided By- Type of Services Provided- PAYROLL PAYROLL TOTAL - ---------------------------------------------------------------------------- NUSCO Miscellaneous 141 0 141 ----------------------------- Total Services Provided 141 0 141 ============================== COE Argentina II Corp. ---------------------- NON- Service Provided By- Type of Services Provided- PAYROLL PAYROLL TOTAL - -------------------------------------------------------------------------- NUSCO Miscellaneous 0 11,083 11,083 Charter Oak Staff 20,182 10,928 9,254 ----------------------------- Total NUSCO Services 20,182 155 20 337 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 35,305 35,305 Total COE Development Services 0 35,305 35,305 ------------------------------ Total Services Provided 20,182 29,212 49,394 ============================== COE Tejona Corp. ---------------- NON- Service Provided By- Type of Services Provided- PAYROLL PAYROLL TOTAL - --------------------------------------------------------------------------- NUSCO Miscellaneous 483 0 483 Internal Audit 1,085 0 1,085 Accounting Services 106 0 106 Wholesale Marketing 8,276 1,269 9,545 Charter Oak Staff 142,439 29,262 171,701 Legal Services 0 836 836 ------------------------------ Total NUSCO Services 152,389 31,367 183,756 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 33,677 33,677 Outside Services 0 294 294 CT Use Tax Recoupment 0 (88,256) (88,256) Legal Services 0 3,107 3,107 ------------------------------ Total COE Development Services 0 (51,178) (51,178) CHARTER OAK ENERGY Charter Oak Staff 0 1,014 1,014 Legal Services 0 115 115 Outside Services 0 543 543 ------------------------------ Total COE Services 0 1,672 1,672 ------------------------------ Total Services Provided 156,711 (15,974) 140,737 ============================== COE AVE FENIX Corp. ---------------- NON- Service Provided By- Type of Services Provided- PAYROLL PAYROLL TOTAL - --------------------------------------------------------------------------- NUSCO Wholesale Marketing 0 19 19 Charter Oak Staff 26,544 6,077 32,621 Outside Services 0 63 63 ------------------------------ Total NUSCO Services 26,544 6,159 32,703 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 8,282 8,282 CT Use Tax Recoupment 0 (51,832) (51,832) Miscellaneous 0 120 120 ------------------------------ Total COE Development Services 0 (34,201) (34,201) Total Services Provided 26,544 (27,800) (1,256) ============================== -----END PRIVACY-ENHANCED MESSAGE-----