-----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, OYZPpUFFdRfw0LQQmjiF6OX7Cj6ZkIxZzlyP2ag6AR1dulijYBqohHBUkvXBouj9 APTpIT6g3i4gphDKGMARYQ== 0000906602-96-000156.txt : 19961206 0000906602-96-000156.hdr.sgml : 19961206 ACCESSION NUMBER: 0000906602-96-000156 CONFORMED SUBMISSION TYPE: U-1/A PUBLIC DOCUMENT COUNT: 9 FILED AS OF DATE: 19961205 SROS: NONE 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: 1935 Act SEC FILE NUMBER: 070-08959 FILM NUMBER: 96676474 BUSINESS ADDRESS: STREET 1: 174 BRUSH HILL AVE CITY: WEST SPRINGFIELD STATE: MA ZIP: 01090-0010 BUSINESS PHONE: 2036655000 MAIL ADDRESS: STREET 1: 107 SELDON ST CITY: BERLIN STATE: CT ZIP: 06037-1616 U-1/A 1 M File No. 70-8959 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT NO. 1 to Form U-1 APPLICATION/DECLARATION WITH RESPECT TO THE ORGANIZATION OF A WHOLLY OWNED SUBSIDIARY RELATED TO AN ACCOUNTS RECEIVABLE PURCHASE AND SALE PROGRAM AND RELATED TRANSACTIONS under THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 WESTERN MASSACHUSETTS ELECTRIC COMPANY 174 Brush Hill Avenue West Springfield, Massachusetts 01089 (Name of companies filing this statement and address of principal executive office) NORTHEAST UTILITIES (Name of top registered holding company parent of declarant) Robert P. Wax, Esq. Vice President, Secretary and General Counsel Northeast Utilities Service Company P.O. Box 270 Hartford, CT 06141-0270 (Name and address of agent for service) The Commission is requested to mail signed copies of all orders, notices, and communications to David R. McHale, Esq. Jeffrey C. Miller, Esq. Assistant Treasurer - Finance Assistant General Counsel Northeast Utilities Service Northeast Utilities Service Company Company P.O. Box 270 P.O. Box 270 Hartford, CT 06141-0270 Hartford, CT 06141-0270 Thomas R. Wildman, Esq. Day, Berry & Howard CityPlace Hartford, CT 06103-3499 The Application/Declaration in this proceeding is hereby amended by the filing of the exhibits and financial statements listed in the "Index to Exhibits and Financial Statements Filed with Amendment No. 1 to Form U-1" which appears on the following page. SIGNATURES Pursuant to the requirements of the Public Utility Holding Company Act of 1935, as amended, the undersigned has duly caused this statement to be signed on its behalf by the undersigned thereunto duly authorized. Dated: December 5, 1996 WESTERN MASSACHUSETTS ELECTRIC COMPANY By_________________________/s/Thomas R. Wildman Thomas R. Wildman A Partner Day, Berry & Howard City Place I Hartford CT 06103-3499 Its Attorney INDEX TO EXHIBITS AND FINANCIAL STATEMENTS FILED WITH AMENDMENT NO. 1 to Form U-1 of WESTERN MASSACHUSETTS ELECTRIC COMPANY (a) Exhibits G.1 WMECO Financial Data Schedule. G.2 NU Financial Data Schedule. H.1 Estimated Expenses -- WMECO. H.2 Estimated Expenses -- NewCo. (b) Financial Statements 1. Western Massachusetts Electric Company 1.1 Balance Sheet, per books and pro forma, as of September 30, 1996. 1.2 Income Statement, per books and pro forma, twelve months ended September 30, 1996. 1.3 Statement of Retained Earnings, per books and pro forma, twelve months ended September 30, 1996 and Statement of Capital Structure, per books and pro forma, as of September 30, 1996. 1.4 Explanation of Pro Forma Adjustments. 2. Northeast Utilities and Subsidiaries 2.1 Consolidated Balance Sheet, per books and pro forma, as of September 30, 1996. 2.2 Consolidated Income Statement, per books and pro forma, twelve months ended September 30, 1996. 2.3 Consolidated Statement of Retained Earnings, per books and pro forma, twelve months ended September 30, 1996, and Consolidated Statement of Capital Structure, per books and pro forma, as of September 30, 1996. 2.4 Explanation of Pro Forma Adjustments. ^ EX-99 2
Exhibit G.1 WESTERN MASSACHUSETTS ELECTRIC COMPANY FINANCIAL DATA SCHEDULE AS OF SEPTEMBER 30, 1996 (THOUSANDS OF DOLLARS) PRO FORMA GIVING EFFECT ITEM TO PROPOSED # DESCRIPTION PER BOOK TRANSACTION 1 Total Net Utility Plant 807,855 807,903 2 Other Property and Investments 94,522 94,522 3 Total Current Assets 74,038 71,778 4 Total Deferred Charges 138,176 138,176 5 Balancing amount for Total Assets 0 0 6 Total Assets 1,114,591 1,112,379 7 Common Stock 26,812 26,812 8 Capital Surplus, Paid In 150,395 150,395 9 Retained Earnings 110,329 108,985 10 Total Common Stockholders Equity 287,536 286,192 11 Preferred Stock Subject to Mandatory Redemption 21,000 21,000 12 Preferred Stock Not Subject to Mandatory Redemption 53,500 53,500 13 Long Term Debt, Net 334,238 334,238 14 Short Term Notes 0 0 15 Notes Payable 8,000 8,000 16 Commercial Paper 0 0 17 Long Term Debt-Current Portion 14,700 14,700 18 Preferred Stock-Current Portion 1,500 1,500 19 Obligations Under Capital Leases 29,108 29,108 20 Obligations Under Capital Leases-Current Portion 2,971 2,971 21 Balancing amount of Capitalization and Liabilities 362,038 361,170 22 Total Capitalization and Liabilities 1,114,591 1,112,379 23 Gross Operating Revenue 422,461 422,461 24 Federal and State Income Taxes Expense 12,897 12,029 25 Other Operating Expenses 365,965 365,987 26 Total Operating Expenses 378,862 378,016 27 Operating Income (Loss) 43,599 44,445 28 Other Income (Loss), Net 2,448 2,363 29 Income Before Interest Charges 46,047 46,808 30 Total Interest Charges 24,692 26,797 31 Net Income 21,355 20,011 32 Preferred Stock Dividends 5,212 5,212 33 Earnings Available For Common Stock 16,143 14,799 34 Common Stock Dividends 20,226 20,226 35 Total Annual Interest Charges on All Bonds 24,154 24,154 36 Cash Flow From Operations 0 0 37 Earnings Per Share-Primary 0.00 0.00 38 Earnings Per Share-Fully Diluted 0.00 0.00
EX-99 3
Exhibit G.2 NORTHEAST UTILITIES AND SUBSIDIARIES FINANCIAL DATA SCHEDULE AS OF SEPTEMBER 30, 1996 (THOUSANDS OF DOLLARS) PRO FORMA GIVING EFFECT ITEM TO PROPOSED # DESCRIPTION PER BOOK TRANSACTION 1 Total Net Utility Plant 6,788,878 6,788,926 2 Other Property and Investments 557,288 557,288 3 Total Current Assets 1,019,885 1,017,625 4 Total Deferred Charges 2,028,428 2,028,428 5 Balancing amount for Total Assets 0 0 6 Total Assets 10,394,479 10,392,267 7 Common Stock 680,260 680,260 8 Capital Surplus, Paid In 941,205 941,205 9 Retained Earnings 941,341 940,014 10 Total Common Stockholders Equity 2,381,084 2,379,757 11 Preferred Stock Subject to Mandatory Redemption 276,000 276,000 12 Preferred Stock Not Subject to Mandatory Redemption 169,700 169,700 13 Long Term Debt, Net 3,688,530 3,688,530 14 Short Term Notes 0 0 15 Notes Payable 15,000 15,000 16 Commercial Paper 0 0 17 Long Term Debt-Current Portion 279,513 279,513 18 Preferred Stock-Current Portion 1,500 1,500 19 Obligations Under Capital Leases 187,095 187,095 20 Obligations Under Capital Leases-Current Portion 19,189 19,189 21 Balancing amount of Capitalization and Liabilities 3,376,868 3,375,983 22 Total Capitalization and Liabilities 10,394,479 10,392,267 23 Gross Operating Revenue 3,836,054 3,836,054 24 Federal and State Income Taxes Expense 156,853 155,968 25 Other Operating Expenses 3,252,035 3,252,057 26 Total Operating Expenses 3,408,888 3,408,025 27 Operating Income (Loss) 427,166 428,029 28 Other Income (Loss), Net 30,549 30,464 29 Income Before Interest Charges 457,715 458,493 30 Total Interest Charges 281,604 283,709 31 Net Income 176,111 174,784 32 Preferred Stock Dividends 33,683 33,683 33 Earnings Available For Common Stock 142,428 141,101 34 Common Stock Dividends 200,027 200,027 35 Total Annual Interest Charges on All Bonds 290,820 290,820 36 Cash Flow From Operations 0 0 37 Earnings Per Share-Primary 1.12 1.11 38 Earnings Per Share-Fully Diluted 1.12 1.11
EX-99 4
Exhibit H.1 SCHEDULE OF FEES, COMMISSIONS AND EXPENSES WMECO Securities and Exchange Commission Filing Fee $2,000 Restructuring Fee 50,000 Legal Fees Counsel to the Purchaser and Agent 65,000 Counsel to the Applicants 50,000 Rating Agency Fees 15,000 Northeast Utilities Service Company 53,000 (Financial, Accounting, Legal and Other Fees and Services) Total Estimate of Fees, Commissions and Expenses $235,000
EX-99 5
Exhibit H.2 SCHEDULE OF FEES, COMMISSIONS AND EXPENSES NEWCO Independent Director Fees $10,000 Total Estimate of Fees, Commissions and Expenses $10,000
EX-99 6
WESTERN MASSACHUSETTS ELECTRIC COMPANY Exhibit 1.1 BALANCE SHEET Page 1 of 2 AS OF SEPTEMBER 30, 1996 (THOUSANDS OF DOLLARS) PRO FORMA GIVING EFFECT PRO FORMA TO PROPOSED PER BOOK ADJUSTMENTS* TRANSACTION ASSETS UTILITY PLANT, AT ORIGINAL COST: ELECTRIC $1,250,137 $60 (a) $1,250,197 LESS: ACCUMULATED PROVISION FOR DEPRECIATION 489,134 12 (b) 489,146 -------- -------- --------- 761,003 48 761,051 CONSTRUCTION WORK IN PROGRESS 16,721 16,721 NUCLEAR FUEL, NET 30,131 30,131 -------- -------- --------- TOTAL NET UTILITY PLANT 807,855 48 807,903 -------- -------- --------- OTHER PROPERTY AND INVESTMENTS: NUCLEAR DECOMMISSIONING TRUST, AT MARKET 74,962 74,962 INVESTMENTS IN REGIONAL NUCLEAR GENERATING COMPANIES, AT EQUITY 15,315 15,315 OTHER, AT COST 4,245 4,245 -------- -------- --------- 94,522 0 94,522 -------- -------- --------- CURRENT ASSETS: CASH AND SPECIAL DEPOSITS 38 33,894 (a) 34,012 (10)(c) 90 (d) RECEIVABLES, NET 39,553 (36,234)(a) 3,319 RECEIVABLES FROM AFFILIATED COMPANIES 786 786 ACCRUED UTILITY REVENUES 10,023 10,023 FUEL, MATERIAL AND SUPPLIES, AT AVERAGE COST 4,880 4,880 RECOVERABLE ENERGY COSTS, NET -- CURRENT 8,274 PREPAYMENTS AND OTHER 10,484 10,484 -------- -------- --------- TOTAL CURRENT ASSETS 74,038 (2,260) 71,778 -------- -------- --------- DEFERRED CHARGES: UNAMORTIZED DEBT EXPENSE 1,379 1,379 INCOME TAXES, NET 79,608 79,608 RECOVERABLE ENERGY COSTS 5,437 5,437 UNRECOVERED CONTRACT OBLIGATION-YAEC 13,151 13,151 OTHER 38,601 38,601 -------- -------- --------- TOTAL DEFERRED CHARGES 138,176 0 138,176 -------- -------- --------- TOTAL ASSETS $1,114,591 ($2,212) $1,112,379 * EXPLANATION ON EXHIBIT 1.4 PAGE 1 OF 1
WESTERN MASSACHUSETTS ELECTRIC COMPANY Exhibit 1.1 BALANCE SHEET Page 2 of 2 AS OF SEPTEMBER 30, 1996 (THOUSANDS OF DOLLARS) PRO FORMA GIVING EFFECT PRO FORMA TO PROPOSED PER BOOK ADJUSTMENTS* TRANSACTION CAPITALIZATION AND LIABILITIES CAPITALIZATION: COMMON SHARES $26,812 $26,812 CAPITAL SURPLUS, PAID IN 150,395 150,395 RETAINED EARNINGS 110,329 (1,344) 108,985 -------- -------- --------- TOTAL COMMON STOCKHOLDER'S EQUITY 287,536 (1,344) 286,192 PREFERRED STOCK NOT SUBJECT TO MANDATORY REDEMPTION 53,500 53,500 PREFERRED STOCK SUBJECT TO MANDATORY REDEMPTION 21,000 21,000 LONG-TERM DEBT, NET 334,238 334,238 -------- -------- --------- TOTAL CAPITALIZATION 696,274 (1,344) 694,930 OBLIGATIONS UNDER CAPITAL LEASES 29,108 29,108 NOTES PAYABLE TO AFFILIATED COMPANIES 8,000 8,000 LONG-TERM DEBT AND PREFERRED STOCK - CURRENT PORTION 16,200 16,200 OBLIGATIONS UNDER CAPITAL LEASES - CURRENT PORTION 2,971 2,971 ACCOUNTS PAYABLE 14,762 14,762 ACCOUNTS PAYABLE TO AFFILIATED COMPANIES 9,294 9,294 ACCRUED TAXES 10,119 (868)(e) 9,251 ACCRUED INTEREST 4,268 4,268 OTHER 16,363 16,363 -------- -------- --------- TOTAL CURRENT LIABILITIES 81,977 (868) 81,109 DEFERRED CREDITS: ACCUMULATED DEFERRED INCOME TAXES 248,202 248,202 ACCUMULATED DEFERRED INVESTMENT TAX CREDITS 25,200 25,200 DEFERRED CONTRACT OBLIGATION-YAEC 13,151 13,151 OTHER 20,679 20,679 -------- -------- --------- TOTAL DEFERRED CREDITS 307,232 0 307,232 -------- -------- --------- TOTAL CAPITALIZATION AND LIABILITIES $1,114,591 ($2,212) $1,112,379 * EXPLANATION ON EXHIBIT 1.4 PAGE 1 OF 1
WESTERN MASSACHUSETTS ELECTRIC COMPANY Exhibit 1.2 INCOME STATEMENT Page 1 of 1 FOR 12 MONTHS ENDED SEPTEMBER 30, 1996 (THOUSANDS OF DOLLARS) PRO FORMA GIVING EFFECT PRO FORMA TO PROPOSED PER BOOK ADJUSTMENTS* TRANSACTION OPERATING REVENUE $422,461 $0 $422,461 -------- -------- --------- OPERATING EXPENSES: OPERATION - FUEL PURCHASED AND INTERCHANGE POWER 101,202 101,202 OTHER 146,847 10 (c) 146,857 MAINTENANCE 48,406 48,406 DEPRECIATION 39,219 12 (b) 39,231 AMORTIZATION/DEFERRALS OF REGULATORY ASSETS, NET 10,633 10,633 FEDERAL AND STATE INCOME TAXES 12,897 (868)(e) 12,029 TAXES OTHER THAN INCOME TAXES 19,658 19,658 -------- -------- --------- TOTAL OPERATING EXPENSES 378,862 (846) 378,016 -------- -------- --------- OPERATING INCOME: 43,599 846 44,445 -------- -------- --------- OTHER INCOME: EQUITY IN EARNINGS OF REGIONAL NUCLEAR GENERATING COMPANIES 1,953 1,953 OTHER, NET 131 (175)(a) 46 90 (d) INCOME TAXES - CREDIT 364 364 -------- -------- --------- OTHER INCOME, NET 2,448 (85) 2,363 -------- -------- --------- INCOME BEFORE INTEREST CHARGES 46,047 761 46,808 -------- -------- --------- INTEREST CHARGES: INTEREST ON LONG-TERM DEBT 24,154 24,154 OTHER INTEREST 538 2,105 (a) 2,643 -------- -------- --------- TOTAL INTEREST CHARGES 24,692 2,105 26,797 -------- -------- --------- NET INCOME $21,355 ($1,344) $20,011 * EXPLANATION ON EXHIBIT 1.4 PAGE 1 OF 1
WESTERN MASSACHUSETTS ELECTRIC COMPANY Exhibit 1.3 STATEMENT OF RETAINED EARNINGS Page 1 of 1 FOR 12 MONTHS ENDED SEPTEMBER 30, 1996 (THOUSANDS OF DOLLARS) PER BOOK ADJUSTED TO PRO FORMA REFLECT PER BOOK ADJUSTMENTS* PRO FORMA BALANCE AT BEGINNING OF PERIOD $114,412 $114,412 NET INCOME 21,355 (1,344) 20,011 CASH DIVIDENDS ON PREFERRED STOCK (5,212) (5,212) CASH DIVIDEND ON COMMON STOCK (20,226) (20,226) -------- ------- --------- BALANCE AT END OF PERIOD $110,329 ($1,344) $108,985
WESTERN MASSACHUSETTS ELECTRIC COMPANY STATEMENT OF CAPITAL STRUCTURE AS OF SEPTEMBER 30, 1996 (THOUSANDS OF DOLLARS) PER BOOK ADJUSTED TO PRO FORMA REFLECT % PER BOOK ADJUSTMENTS* PRO FORMA % DEBT: LONG-TERM DEBT, NET 49.0% $348,938 0 $348,938 49.1% PREFERRED STOCK: NOT SUBJECT TO REDEMPTION 53,500 53,500 SUBJECT TO REDEMPTION 22,500 22,500 -------- ------- -------- TOTAL PREFERRED STOCK 10.7% 76,000 0 76,000 10.7% COMMON EQUITY: COMMON SHARES 26,812 26,812 CAPITAL SURPLUS, PAID IN 150,395 150,395 RETAINED EARNINGS 110,329 (1,344) 108,985 -------- ------- -------- TOTAL COMMON STOCKHOLDER'S EQUITY 40.3% 287,536 (1,344) 286,192 40.2% -------- ------- -------- TOTAL CAPITAL 100.0% $712,474 (1,344) $711,130 100.0% * EXPLANATION ON EXHIBIT 1.4 PAGE 1 OF 1
WESTERN MASSACHUSETTS ELECTRIC COMPANY Exhibit 1.4 EXPLANATION OF ADJUSTMENTS Page 1 of 1 (THOUSANDS OF DOLLARS) DEBIT CREDIT (a) CASH $33,894 UTILITY PLANT 60 OTHER INCOME, NET 175 INTEREST EXPENSE, OTHER 2,105 ACCOUNTS RECEIVABLE $36,234
To record an intial sale of 9/30/96 accounts receivable and related upfront expenditures. The organization costs associated with the creation of NewCo will be capitalized and roll up into Utility Plant. Of the fees listed on Exhibit H.1 it is estimated that approximately a third of the legal and NUSCO fees are related to the creation of NewCo. The remainder of the upfront costs will be expensed. The cost associated with the initial transaction is based on the LIBOR as of 11/14/96 [5.38%] + an estimated spread of .43%.
(b) DEPRECIATION 12 ACCUMULATED PROVISION 12 To record one year's amortization of upfront costs. (c) OPERATION EXPENSE, OTHER 10 CASH 10 To record independent directors expense. (d) CASH 90 SERVICING FEE INCOME 90 To record fees related to servicing the accounts receivable. (e) ACCRUED TAXES 868 FEDERAL AND STATE INCOME TAX EXPENSE 868
To record the reduction in Federal and State income taxes due to the higher interest and fee expenses: $2,212 x 39.23% = 868 NOTE: The above represents the consolidated impact of the sale of undivided ownership interests in WMECO's accounts receivables. Some of the remaining receivables are allocated to the purchaser on an interim basis, to protect against bad debt and other potential losses. As collections reduce previously sold undivided interests, new receivables will will be sold. The following elements of the Parent/Sub transactions are eliminated on consolidation of WMECO and NewCo's accounts. - - The loss booked by WMECO on the sale of accounts recievable to NewCo is offset by Unrecognized revenue earned by NewCo as collections are realized - - Due to/from Parent/Sub Accounts - - Investment in/equity of NewCo - - Any remaining interest in NewCo can be dividended back up to Parent EX-99 7
NORTHEAST UTILITIES AND SUBSIDIARIES Exhibit 2.1 CONSOLIDATED BALANCE SHEET Page 1 of 2 AS OF SEPTEMBER 30, 1996 (THOUSANDS OF DOLLARS) PRO FORMA GIVING EFFECT PRO FORMA TO PROPOSED PER BOOK ADJUSTMENTS* TRANSACTION ASSETS UTILITY PLANT, AT ORIGINAL COST: ELECTRIC & OTHER $9,767,433 $60 (a) $9,767,493 LESS: ACCUMULATED PROVISION FOR DEPRECIATION 3,874,639 12 (b) 3,874,651 --------- --- ---------------- 5,892,794 48 5,892,842 UNAMORTIZED ACQUISITION COSTS - PSNH 514,065 514,065 CONSTRUCTION WORK IN PROGRESS 196,059 196,059 NUCLEAR FUEL, NET 185,960 185,960 --------- --- ---------------- TOTAL NET UTILITY PLANT 6,788,878 48 6,788,926 --------- --- ---------------- OTHER PROPERTY AND INVESTMENTS: NUCLEAR DECOMMISSIONING TRUST, AT MARKET 358,980 358,980 INVESTMENTS IN REGIONAL NUCLEAR GENERATING COMPANIES, AT EQUITY 84,620 84,620 INVESTMENTS IN TRANSMISSION COMPANIES, AT EQUITY 22,702 22,702 INVESTMENTS IN CHARTER OAK ENERGY 44,703 44,703 OTHER, AT COST 46,283 46,283 --------- --- ---------------- 557,288 0 557,288 --------- --- ---------------- CURRENT ASSETS: CASH AND SPECIAL DEPOSITS 238,943 33,894 (a) 272,917 (10)(c) 90 (d) RECEIVABLES, NET 419,501 (36,234)(a) 383,267 ACCRUED UTILITY REVENUES 103,456 103,456 FUEL, MATERIAL AND SUPPLIES, AT AVERAGE COST 203,041 203,041 PREPAYMENTS AND OTHER 54,944 54,944 --------- --- ---------------- TOTAL CURRENT ASSETS 1,019,885 (2,260) 1,017,625 --------- --- ---------------- DEFERRED CHARGES: REGULATORY ASSET-INCOME TAXES, NET 1,066,579 1,066,579 UNAMORTIZED DEBT EXPENSE 37,197 37,197 RECOVERABLE ENERGY COSTS, NET 324,608 324,608 DEFERRED CONSERVATION AND LOAD- MANAGEMENT COSTS 83,225 83,225 COGENERATION COSTS - CLP 76,679 76,679 DEFERRED COSTS - NUCLEAR PLANTS 180,374 180,374 AMORTIZABLE PROPERTY INVESTMENT - 0 0 UNRECOVERED CONTRACT OBLIGATION-YAEC 69,832 69,832 OTHER 189,934 189,934 --------- --- ---------------- TOTAL DEFERRED CHARGES 2,028,428 0 2,028,428 --------- --- ---------------- TOTAL ASSETS $10,394,479 ($2,212) $10,392,267 * EXPLANATION ON EXHIBIT 2.4 PAGE 1 OF 1
NORTHEAST UTILITIES AND SUBSIDIARIES Exhibit 2.1 CONSOLIDATED BALANCE SHEET Page 2 of 2 AS OF SEPTEMBER 30, 1996 (THOUSANDS OF DOLLARS) PRO FORMA GIVING EFFECT PRO FORMA TO PROPOSED PER BOOK ADJUSTMENTS* TRANSACTION CAPITALIZATION AND LIABILITIES CAPITALIZATION: COMMON SHARES $680,260 $680,260 CAPITAL SURPLUS, PAID IN 941,205 941,205 DEFERRED BENEFIT PLAN-EMPLOYEE STOCK OWNERSHIP PLAN (181,722) (181,722) RETAINED EARNINGS 941,341 (1,327) 940,014 ---------- --------- ------------- TOTAL COMMON STOCKHOLDER'S EQUITY 2,381,084 (1,327) 2,379,757 PREFERRED STOCK NOT SUBJECT TO MANDATORY REDEMPTION 169,700 169,700 PREFERRED STOCK SUBJECT TO MANDATORY REDEMPTION 276,000 276,000 LONG-TERM DEBT, NET 3,688,530 3,688,530 ---------- --------- ------------- TOTAL CAPITALIZATION 6,515,314 (1,327) 6,513,987 OBLIGATIONS UNDER CAPITAL LEASES 187,095 187,095 MINORITY INTEREST IN CONSOLIDATED SUBS 99,895 99,895 CURRENT LIABILITIES: NOTES PAYABLE 15,000 15,000 LONG-TERM DEBT AND PREFERRED STOCK - CURRENT PORTION 281,013 281,013 OBLIGATIONS UNDER CAPITAL LEASES - CURRENT PORTION 19,189 19,189 ACCOUNTS PAYABLE 289,656 289,656 ACCRUED TAXES 66,750 (885)(e) 65,865 ACCRUED INTEREST 71,853 71,853 ACCRUED PENSION BENEFITS 91,603 91,603 OTHER 128,037 128,037 ---------- --------- ------------- TOTAL CURRENT LIABILITIES 963,101 (885) 962,216 DEFERRED CREDITS: ACCUMULATED DEFERRED INCOME TAXES 2,083,974 2,083,974 ACCUMULATED DEFERRED INVESTMENT TAX CREDITS 170,847 170,847 DEFERRED CONTRACT OBLIGATION-YAEC 72,332 72,332 OTHER 301,921 301,921 ---------- --------- ------------- TOTAL DEFERRED CREDITS 2,629,074 0 2,629,074 ---------- --------- ------------- TOTAL CAPITALIZATION AND LIABILITIES $10,394,479 ($2,212) $10,392,267 * EXPLANATION ON EXHIBIT 2.4 PAGE 1 OF 1
NORTHEAST UTILITIES AND SUBSIDIARIES Exhibit 2.2 CONSOLIDATED INCOME STATEMENT Page 1 of 1 FOR 12 MONTHS ENDED SEPTEMBER 30, 1996 (THOUSANDS OF DOLLARS) PRO FORMA GIVING EFFECT PRO FORMA TO PROPOSED PER BOOK ADJUSTMENTS* TRANSACTION OPERATING REVENUE $3,836,054 $0 $3,836,054 ---------- --------- ------------- OPERATING EXPENSES: OPERATION - FUEL PURCHASED AND INTERCHANGE POWER 1,047,954 1,047,954 OTHER 1,098,352 10 (c) 1,098,362 MAINTENANCE 374,018 374,018 DEPRECIATION 359,982 12 (b) 359,994 AMORTIZATION/DEFERRALS OF REGULATORY ASSETS, NET 112,985 112,985 FEDERAL AND STATE INCOME TAXES 156,853 (885)(e) 155,968 TAXES OTHER THAN INCOME TAXES 258,744 258,744 ---------- --------- ------------------ TOTAL OPERATING EXPENSES 3,408,888 (863) 3,408,025 ---------- --------- ------------------ OPERATING INCOME: 427,166 863 428,029 ---------- --------- ------------------ OTHER INCOME: DEFERRED NUCLEAR PLANTS RETURN-OTHER FUNDS 10,801 10,801 EQUITY IN EARNINGS OF REGIONAL NUCLEAR GENERATING COMPANIES 13,992 13,992 OTHER, NET 16,505 (175)(a) 16,420 90 (d) INCOME TAXES - CREDIT (10,749) (10,749) ---------- --------- ------------------ OTHER INCOME, NET 30,549 (85) 30,464 ---------- --------- ------------------ INCOME BEFORE INTEREST CHARGES 457,715 778 458,493 ---------- --------- ------------------ INTEREST CHARGES: INTEREST ON LONG-TERM DEBT 290,820 290,820 OTHER INTEREST 8,594 2,105 (a) 10,699 DEFERRED NUCLEAR PLANTS RETURN - BORROWED FUNDS, NET OF INCOME TAX (17,810) (17,810) ---------- --------- ------------------ TOTAL INTEREST CHARGES 281,604 2,105 283,709 ---------- --------- ------------------ INCOME BEFORE PREFERRED DIVIDENDS 176,111 (1,327) 174,784 PREFERRED DIVIDENDS OF SUBSIDIARIES 33,683 33,683 ---------- --------- ------------------ NET INCOME 142,428 (1,327) 141,101 EARNINGS FOR COMMON SHARE 142,428 (1,327) 141,101 EARNINGS PER COMMON SHARE 1.12 1.11 COMMON SHARES OUTSTANDING (AVERAGE) 127,631,061 127,631,061 * EXPLANATION ON EXHIBIT 2.4 PAGE 1 OF 1
NORTHEAST UTILITIES AND SUBSIDIARIES Exhibit 2.3 STATEMENT OF RETAINED EARNINGS Page 1 of 1 FOR 12 MONTHS ENDED SEPTEMBER 30, 1996 (THOUSANDS OF DOLLARS) PER BOOK ADJUSTED TO PRO FORMA REFLECT PER BOOK ADJUSTMENTS* PRO FORMA BALANCE AT BEGINNING OF PERIOD $999,065 $999,065 NET INCOME 176,111 (1,327) 174,784 CASH DIVIDENDS ON PREFERRED STOCK (33,683) (33,683) CASH DIVIDEND ON COMMON STOCK (200,027) (200,027) LOSS ON RETIREMENT OF PREFERRED STOCK (125) (125) ---------- --------- --------------- BALANCE AT END OF PERIOD $941,341 ($1,327) $940,014
NORTHEAST UTILITIES AND SUBSIDIARIES CAPITAL STRUCTURE AS OF SEPTEMBER 30, 1996 (THOUSANDS OF DOLLARS) FINANCIAL STATEMENT 7.2 PAGE 2 OF 3 PER BOOK ADJUSTED TO PRO FORMA REFLECT % PER BOOK ADJUSTMENTS* PRO FORMA % DEBT: LONG-TERM DEBT, NET 58.4% $3,968,043 $0 $3,968,043 58.4% PREFERRED STOCK: NOT SUBJECT TO REDEMPTION 169,700 169,700 SUBJECT TO REDEMPTION 277,500 277,500 ---------- ------- ----------- TOTAL PREFERRED STOCK 6.6% 447,200 0 447,200 6.6% COMMON EQUITY: COMMON SHARES 680,260 680,260 CAPITAL SURPLUS, PAID IN 941,205 941,205 DEFERRED BENEFIT PLAN-EMPLOYEE STOCK OWNERSHIP PLAN (181,722) (181,722) RETAINED EARNINGS 941,341 (1,327) 940,014 ---------- ------- ----------- TOTAL COMMON STOCKHOLDER'S EQUITY 35.0% 2,381,084 (1,327) 2,379,757 35.0% ---------- ------- ----------- TOTAL CAPITAL 100.0% $6,796,327 ($1,327) $6,795,000 100.0% * EXPLANATION ON EXHIBIT 2.4 PAGE 1 OF 1
NORTHEAST UTILITIES AND SUBSIDIARIES Exhibit 2.4 EXPLANATION OF ADJUSTMENTS Page 1 of 1 (THOUSANDS OF DOLLARS) DEBIT CREDIT (a) CASH $33,894 UTILITY PLANT 60 OTHER INCOME, NET 175 INTEREST EXPENSE, OTHER 2,105 ACCOUNTS RECEIVABLE $36,234
To record an intial sale of WMECO 9/30/96 accounts receivable and related upfront expenditures. The organization costs associated with the creation of NewCo (a WMECO subsidiary) will be capitalized and roll up into Utility Plant. Of the fees listed on Exhibit H.1 it is estimated that approximately a third of the legal and NUSCO fees are related to the creation of NewCo. The remainder of the upfront costs will be expensed. The cost associated with the initial transaction is based on the LIBOR as of 11/14/96 [5.38%] + an estimated spread of .43%.
(b) DEPRECIATION 12 ACCUMULATED PROVISION 12 To record one year's amortization of upfront costs. (c) OPERATION EXPENSE, OTHER 10 CASH 10 To record independent directors expense. (d) CASH 90 SERVICING FEE INCOME 90 To record fees related to servicing the accounts receivable. (c) ACCRUED TAXES 885 FEDERAL AND STATE INCOME TAX EXPENSE 885
To record the reduction in Federal and State income taxes due to the higher interest and fee expenses: $2,212 x 40.00% = 885 EX-27 8 WESTERN MASSACHUSETTS ELECTRIC COMPANY FDS
OPUR1 WESTERN MASSACHUSETTS ELECTRIC COMPANY 2 1,000 12-MOS 12-MOS SEP-30-1996 SEP-30-1996 SEP-30-1996 SEP-30-1996 PER-BOOK PRO-FORMA 807,855 807,903 94,522 94,522 74,038 71,778 138,176 138,176 0 0 1,114,591 1,112,379 26,812 26,812 150,395 150,395 110,329 108,985 287,536 286,192 21,000 21,000 53,500 53,500 334,238 334,238 0 0 8,000 8,000 0 0 14,700 14,700 1,500 1,500 29,108 29,108 2,971 2,971 362,038 361,170 1,114,591 1,112,379 422,461 422,461 12,897 12,029 365,965 365,987 378,862 378,016 43,599 44,445 2,448 2,363 46,047 46,808 24,692 26,797 21,355 20,011 5,212 5,212 16,143 14,799 20,226 20,226 24,154 24,154 0 0 0.00 0.00 0.00 0.00
EX-27 9 NORTHEAST UTILITIES AND SUBSIDIARIES FDS
OPUR1 10 NORTHEAST UTILITIES AND SUBSIDIARIES 1,000 12-MOS 12-MOS SEP-30-1996 SEP-30-1996 SEP-30-1996 SEP-30-1996 PER-BOOK PRO-FORMA 6,788,878 6,788,926 557,288 557,288 1,019,885 1,017,625 2,028,428 2,028,428 0 0 10,394,479 10,392,267 680,260 680,260 941,205 941,205 941,341 940,014 2,381,084 2,379,757 276,000 276,000 169,700 169,700 3,688,530 3,688,530 0 0 15,000 15,000 0 0 279,513 279,513 1,500 1,500 187,095 187,095 19,189 19,189 3,376,868 3,375,983 10,394,479 10,392,267 3,836,054 3,836,054 156,853 155,968 3,252,035 3,252,057 3,408,888 3,408,025 427,166 428,029 30,549 30,464 457,715 458,493 281,604 283,709 176,111 174,784 33,683 33,683 142,428 141,101 200,027 200,027 290,820 290,820 0 0 1.12 1.11 1.12 1.11
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