U5S 1 nu_66673-u5s.txt FORM U5S ANNUAL REPORT Commission File Number: 30-246 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549-1004 FORM U5S ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2003 Filed pursuant to the Public Utility Holding Company Act of 1935 by NORTHEAST UTILITIES 174 Brush Hill Avenue, West Springfield, Massachusetts 01090-0010 (Corporate Address) Selden Street, Berlin, Connecticut 06037-1616 (Principal Headquarters) NORTHEAST UTILITIES FORM U5S ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2003 TABLE OF CONTENTS ----------------- ITEM PAGE ---- ---- 1. System Companies and Investments Therein.............................. 2 2. Acquisitions or Sales of Utility Assets............................... 8 3. Issue, Sale, Pledge, Guarantee, or Assumption of System Securities..................................................... 9 4. Acquisition, Redemption or Retirement of System Securities............................................................ 10 5. Investments in Securities of Nonsystem Companies............................................................. 10 6. Officers and Directors................................................ 12 7. Contributions and Public Relations.................................... 44 8. Service, Sales and Construction Contracts............................. 44 9. Wholesale Generators and Foreign Utility Companies............................................................. 45 10. Financial Statements and Exhibits..................................... 48 Independent Auditors' Consent......................................... F-1 Signature............................................................. F-5 1 ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2003
Number of % of Tier Name of Company (Company Abbreviation) Shares Owned Voting Power ---- -------------------------------------- ------------ ------------ Northeast Utilities (NU) (a) 1 The Connecticut Light and Power Company (CL&P) (b) (d) 6,035,205 100% Unsecured Debt (Note B) N/A N/A 2 CL&P Receivables Corporation (CRC) 100 100% 2 CL&P Funding LLC - 100% 1 Public Service Company of New Hampshire (PSNH) (b) 301 100% Unsecured Debt (Note B) N/A N/A 2 Properties, Inc. 200 100% 2 PSNH Funding LLC - 100% 2 PSNH Funding LLC 2 - 100% 1 Western Massachusetts Electric Company (WMECO) (b) 434,653 100% Unsecured Debt (Note B) N/A N/A 2 WMECO Funding LLC - 100% 1 North Atlantic Energy Corporation (NAEC) 6 100% 1 North Atlantic Energy Service Corporation (NAESCO)* 1,000 100% 1 Holyoke Water Power Company (HWP) 480,000 100% Unsecured Debt (Note B) N/A N/A 2 Holyoke Power and Electric Company (HP&E) 4,850 100% 1 Yankee Energy System, Inc. (YES) 1,000 100% 2 Yankee Gas Services Company (Yankee Gas) 1,000 100% Unsecured Debt (Note B) N/A N/A 2 Norconn Properties, Inc. (Norconn) 100 100% Unsecured Debt (Note B) N/A N/A 2 Yankee Energy Services Company (YESCO) 200 100% 2 Yankee Energy Financial Services Company (YEFSCO) 200 100% Unsecured Debt (Note B) N/A N/A 2 Housatonic Corporation* 100 100% 2 R.M. Services, Inc. (RMS) 10,000 (f) 10% 1 Northeast Utilities Service Company (NUSCO) 1 100% 1 NU Enterprises, Inc. (NUEI) 89 100% 2 Northeast Generation Company (NGC) 6 100% 2 Northeast Generation Services Company (NGS) 100 100% Unsecured Debt (Note B) N/A N/A 3 Greenport Power LLC (Greenport) (e) N/A 50% 3 E.S. Boulos Company (Boulos) 100 100% 3 NGS Mechanical, Inc. 100 100% 3 Woods Electrical Co., Inc. 100 100% Unsecured Debt (Note B) N/A N/A 2 Mode 1 Communications, Inc. 100 100% 2 Woods Network Services, Inc. 100 100% Unsecured Debt (Note B) N/A N/A 2 Select Energy, Inc. (Select Energy) 100 100% Unsecured Debt (Note B) N/A N/A 3 Select Energy New York, Inc. (SENY) 10,000 100% Unsecured Debt (Note B) N/A N/A 2 Select Energy Services, Inc. (SESI) 100 100% Unsecured Debt (Note B) N/A N/A 3 Select Energy Contracting, Inc. 100 100% 3 Reeds Ferry Supply Co., Inc. 100 100% 3 HEC/Tobyhanna Energy Project, Inc. 100 100% 3 HEC/CJTS Energy Center LLC - 100% 1 The Quinnehtuk Company 3,500 100% Unsecured Debt (Note B) N/A N/A 1 The Rocky River Realty Company (RRR) 100 100% Unsecured Debt (Note B) N/A N/A * Inactive.
2 ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2003 Issuer Owner's Book Value Book Value (000's) (000's) Type of Business ------- ------- ---------------- Registered Holding Company $698,427 $698,427 Electric Utility 91,125 91,125 235,063 235,063 Special Purpose Entity (SPE) 7,193 7,193 SPE 380,260 380,260 Electric Utility 48,900 48,900 6,412 6,412 Real Estate (c) 3,126 3,126 SPE 251 251 SPE 152,003 152,003 Electric Utility 31,400 31,400 776 776 SPE 5,179 5,179 Electric Utility 1,635 1,635 Service Company* 4,755 4,755 Electric Utility 11,000 11,000 199 199 Electric Utility 525,134 525,134 Intermediate Holding Company 508,757 508,757 Gas Utility 72,500 72,500 439 439 Real Estate (c) 1,100 1,100 4,691 4,691 Rule 58 Energy-Related Company 1,551 1,551 Financial Services 3,600 3,600 (191) (191) * 4,942 4,942 Receivables Services 1,778 1,778 Service Company 573,616 573,616 Intermediate Holding Company 438,449 438,449 Exempt Wholesale Generator 13,299 13,299 Rule 58 Energy-Related Company 15,500 15,500 N/A N/A Rule 58 Energy-Related Company 13,022 13,022 Rule 58 Energy-Related Company 8 8 Rule 58 Energy-Related Company 4,483 4,483 Rule 58 Energy-Related Company 5,250 5,250 14,651 14,651 Exempt Telecommunications Company 3,060 3,060 Exempt Telecommunications Company 4,150 4,150 42,202 42,202 Rule 58 Energy-Related Company 150,000 150,000 37,999 37,999 Rule 58 Energy-Related Company 14,699 14,699 35,535 35,535 Energy Services Company 1,250 1,250 17,582 17,582 Rule 58 Energy-Related Company (42) (42) Rule 58 Energy-Related Company 902 902 SPE, Rule 58 Energy-Related Company 1 1 SPE, Rule 58 Energy-Related Company (2,632) (2,632) Real Estate (c) 4,000 4,000 22,322 22,322 Real Estate (c) 21,500 21,500 3 ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2003 (CONTINUED)
Number of % of Tier Name of Company (Company Abbreviation) Shares Owned Voting Power ---- -------------------------------------- ------------ ------------ 1 Northeast Nuclear Energy Company (NNECO)* 30 100% 1 Charter Oak Energy, Inc. (COE)* 100 100%
*Inactive. 4 ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2003 (CONTINUED) Issuer Owner's Book Value Book Value (000's) (000's) Type of Business ------- ------- ---------------- 1,173 1,173 Service Company* 155 155 * 5 (a) For information regarding NU's investment in the hydro-transmission companies see Note A to Item 1. (b) For information regarding CL&P's, PSNH's and WMECO's investments in regional nuclear generating companies see Note A to Item 1. (c) Constructs, acquires or leases some of the property and facilities used by one or more of NU's subsidiaries. (d) CL&P has four inactive subsidiaries not listed in this table: The Connecticut Steam Company, The Nutmeg Power Company, Electric Power Incorporated and CL&P Capital L.P. (e) Greenport is a limited liability company that was established to enter into an engineering, procurement and construction agreement with Global Common LLC for the performance of design, engineering, procurement, construction and other services in connection with an electrical generation facility construction project. (f) Preferred stock. 6 ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2003 (CONTINUED) Note A: The following are CL&P's, PSNH's and WMECO's total investments in regional nuclear generating companies and NU's investments in New England Hydro-Transmission Electric Company, Inc. and New England Hydro-Transmission Corporation:
No. of % Carrying Common of Value Shares Voting to Name of Owner Name of Issuer Owned Power Owners ------------- -------------- ----- ----- ------ (000's) The Connecticut Light and Power Company: Connecticut Yankee Atomic Power Co. (a) 120,750 34.5% $16,460 Maine Yankee Atomic Power Co. (a) 34,716 12.0 5,303 Yankee Atomic Electric Co. (a) 1,879 24.5 - Public Service Company of New Hampshire: Connecticut Yankee Atomic Power Co. (a) 17,500 5.0 2,385 Maine Yankee Atomic Power Co. (a) 14,465 5.0 2,210 Yankee Atomic Electric Co. (a) 537 7.0 - Western Massachusetts Electric Company: Connecticut Yankee Atomic Power Co. (a) 33,250 9.5 4,533 Maine Yankee Atomic Power Co. (a) 8,679 3.0 1,326 Yankee Atomic Electric Co. (a) 537 7.0 - Total System Investment: Connecticut Yankee Atomic Power Co. (a) 171,500 49.0 23,378 Maine Yankee Atomic Power Co. (a) 57,860 20.0 8,839 Yankee Atomic Electric Co. (a) 2,953 38.5 - Northeast Utilities: New England Hydro-Transmission Electric Company, Inc. 465,624 22.66 6,296 New England Hydro-Transmission Corp. 2,153 22.66 3,768
(a) Yankee Atomic Electric Co.'s, Connecticut Yankee Atomic Power Co.'s and Maine Yankee Atomic Power Co.'s nuclear power plants were shut down permanently on February 26, 1992, December 4, 1996, and August 6, 1997, respectively. 7 Note B: This table represents all system money pool borrowings and NU Parent advances at December 31, 2003.
System Money Pool Principal Issuer Owner's Name of Company and NU Parent Advances Amount Owed Book Value Book Value --------------- ---------------------- ----------- ---------- ---------- (Thousands of Dollars) CL&P 1% System Money Pool $ 91,125 $ 91,125 $ 91,125 PSNH 1% System Money Pool 48,900 48,900 48,900 WMECO 1% System Money Pool 31,400 31,400 31,400 HWP 1% System Money Pool 1,400 1,400 1,400 Variable Rate, Payable Upon Demand (a) 9,600 9,600 9,600 -------- -------- -------- 11,000 11,000 11,000 -------- -------- -------- Yankee Gas 1% System Money Pool 67,500 67,500 67,500 Non-interest bearing, Payable Upon Demand 5,000 5,000 5,000 -------- -------- -------- 72,500 72,500 72,500 -------- -------- -------- Norconn 1% System Money Pool 1,100 1,100 1,100 YESCO 1% System Money Pool 3,600 3,600 3,600 NGS 1% System Money Pool 10,500 10,500 10,500 7.25% Payable Upon Demand 5,000 5,000 5,000 -------- -------- -------- 15,500 15,500 15,500 -------- -------- -------- Woods Electrical Company 1% System Money Pool 800 800 800 7.25% Payable Upon Demand 4,450 4,450 4,450 -------- -------- -------- 5,250 5,250 5,250 -------- -------- -------- Woods Network Services 7.25% Payable Upon Demand 4,150 4,150 4,150 Select Energy 4.10% Payable Upon Demand 150,000 150,000 150,000 SENY Variable Rate, Payable Upon Demand (a) 14,699 14,699 14,699 SESI 1% System Money Pool 1,250 1,250 1,250 The Quinnehtuk Company 1% System Money Pool 4,000 4,000 4,000 RRR 1% System Money Pool 16,500 16,500 16,500 7.25% Payable Upon Demand 5,000 5,000 5,000 -------- -------- -------- 21,500 21,500 21,500 -------- -------- --------
(a) Interest rate is based on the 3-month Eurodollar plus applicable margin. The interest rate at December 31, 2003 was 2.01 percent. ITEM 2. ACQUISITIONS OR SALES OF UTILITY ASSETS In 2003, WMECO sold the Chicopee Substation land and other assets to Chicopee Municipal Lighting Plant for total consideration of $3,375,000. In December 2003, PSNH sold a building and associated land to W&E Realty, LLC for total consideration of $1,100,000. 8 ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE, OR ASSUMPTION OF SYSTEM SECURITIES Descriptions of transactions involving the issue, sale, pledge, guarantee, or assumption of system securities, including short-term borrowings, have been filed pursuant to Rule 24, with the exception of certain NU guarantees incident to the procurement of surety bonds and the issue of certain securities, as described below. In the ordinary course of their businesses, the NU subsidiary companies are required to provide surety or performance bonds. From time to time, NU guarantees the payment of such a bond by its subsidiary through the indemnification of the surety company or agency which has agreed to provide the bond. NU's guarantee of these surety bonds is exempt from the provisions of Section 12(b) of the Public Utility Holding Company Act of 1935, pursuant to Rule 45(b)(6) thereunder. As of December 31, 2003, NU had $41 million of such guarantees outstanding, which was the highest amount outstanding during 2003. At various times from January 1, 2003 through December 31, 2003, Select Energy has issued debt to NU in reliance on Rule 52. The highest balance outstanding through the year was $84 million on November 25, 2003 and the balance at the end of 2003 was $65 million. The interest rate matched the interest rate charged to NU under its revolving credit facility at the time of the issuance. At December 31, 2003, the weighted average interest rate was 2.19% (excluding utilization fees). Also, Select Energy issued a note in the amount of $150 million to NU on June 3, 2003 at a rate of 3.3% in reliance on the exemption in Rule 52. In addition, information relating to the following issuances has been filed on Form U-6B-2 in accordance with Rule 52: 1. On September 1, 2003, Western Massachusetts Electric Company, The Bank of New York, as Trustee, and certain participating banks therein named, entered into an indenture agreement to issue a series of 5.00% Senior Notes, Series A, due 2013, in the aggregate principal amount of $55,000,000. Form U-6B-2 for this transaction was filed on October 2, 2003. 2. On September 23, 2003, The Connecticut Light and Power Company, the Connecticut Development Authority, the U.S. Bank National Association, as trustee, and certain participating banks therein named, entered into a Compensation and Multiannual Mode Agreement to convert the 1996 Series A Pollution Control Revenue Bonds to a multiannual interest rate. The 1996 Series A Pollution Control Revenue Bonds were converted from bearing interest at a weekly rate to bearing interest at a multiannual rate of 3.35% for a 5 year period and that upon conversion, the bonds would cease to be supported by the 2000 Standby Bond Purchase Agreement. Form U-6B-2 for this transaction was filed on October 2, 2003. 9 ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES (1)
Name of Company Acquiring, Redeeming or Shares or Name of Issuer and Title of Issue Retiring Principal Amount Consideration --------------------------------- -------- ---------------- ------------- NU, Common Shares (2) NU 1,495,608 shares $20,537,000 NNECO, Common Stock (3) NNECO 1,497 shares $15,043,000 NGC, 4.998% Series A (2) NGC $27,000,000 $27,000,000 =========== =========== NU Parent, 8.58% (2) NU Parent $18,000,000 $18,000,000 NU Parent, 8.38% Series B Note (2) NU Parent 5,000,000 5,000,000 ----------- ----------- $23,000,000 $23,000,000 =========== =========== RRR, 7.875% Installment Note (4)(5) RRR $ 913,000 $ 913,000 RRR, 6.620% Mortgage Note (2) RRR 95,846 95,846 RRR, 8.810% Series A Note (2)(6) RRR 1,285,253 1,285,253 ----------- ----------- $ 2,294,099 $ 2,294,099 =========== =========== YGS, First Mortgage Bonds - YGS $ 950,000 $ 950,000 10.07% Series A-E (2) =========== =========== NorConn, 6.24% NorConn Properties, Inc. NorConn $ 1,400,000 $ 1,400,000 - Series A-B, (4) =========== ===========
(1) For acquisitions, redemptions or retirements of system securities, other than preferred stock, all transactions exempt pursuant to Rule 42, except as noted. (2) Held for further disposition. (3) Transaction pursuant to Commission Order, 35-27748, November 8, 2003. (4) Extinguished. (5) Unsecured. (6) Secured. ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES
Name of Owner (1) Name of Issuer Security Owned ----------------- -------------- --------------- Western Massachusetts Massachusetts Mutual Note Electric Company Life Insurance (Insurance) Public Service Company Amoskeag Industries, Inc. Stock of New Hampshire (Manufacturer) Northeast Utilities Connecticut Seed Limited (Parent) Ventures, Ltc. Partnership (Venture Capital) Interest 11 Subsidiaries (2) Various Stock, Debentures and Notes
10 ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES (CONTINUED)
Name of Owner (1) Name of Issuer Security Owned ----------------- -------------- --------------- Mode 1 Communications, NEON Communications, Inc. Stock Inc. (Telecommunications) NU Enterprises, Inc. Acumentrics Corporation Stock (Energy Related) YESCO BMC Energy LLC Note (Energy Related) % of Carrying Number of Voting Value to Name of Owner Shares/Book Value Power Owners ------------- ----------------- ----- -------- (000's) Western Massachusetts - - $ 190 Electric Company ======= Public Service Company 1,000 shares - $ 100 of New Hampshire ======= Northeast Utilities - - $ 13 (Parent) ======= 11 Subsidiaries - - $ 154 ======= Mode 1 Communications, 1,786,622 shares 7% $ 9,861 Inc. ======= NU Enterprises, Inc. 500,000 shares 5% $ 7,500 ======= YESCO $4.7 million note - $ 4,036 =======
(1) Recorded at cost on owners' books. Partnership interests are accounted for under the equity method of accounting. (2) Comprised of CL&P, WMECO, HWP, The Quinnehtuk Company, NUSCO, NU Parent, PSNH, Yankee, NUEI, SESI and RRR. 11 ITEM 6. OFFICERS AND DIRECTORS Part I. As of December 31, 2003 1. The following is a list of the names and principal business addresses of the individuals who are Trustees of Northeast Utilities (NU), but who are not officers or directors of any other NU system company. The names of the officers and directors of system companies appear in Section 2 below. Mr. Richard H. Booth Elizabeth T. Kennan Hartford Steam Boiler Inspection c/o Northeast Utilities & Insurance Company P.O. Box 270 One State Street Hartford, CT 06141-0270 Hartford, CT 06102 Cotton Mather Cleveland Robert E. Patricelli Mather Associates Women's Health USA, Inc. 75 Newport Road, Suite 208 and Evolution Benefits, Inc. New London, NH 03257 22 Waterville Road Avon, CT 06001 Sanford Cloud, Jr. John F. Swope The National Conference for c/o Northeast Utilities Community and Justice P.O. Box 270 475 Park Avenue South, 19th Floor Hartford, CT 06141-0270 New York, NY 10016 Mr. James F. Cordes c/o Northeast Utilities P.O. Box 270 Hartford, CT 06141-0270 E. Gail de Planque, Ph.D c/o Northeast Utilities P.O. Box 270 Hartford, CT 06141-0271 John G. Graham c/o Northeast Utilities P.O. Box 270 Hartford, CT 06141-0271 2. Following are the names of and positions held by the officers and directors of all system companies (excluding the Trustees of Northeast Utilities who are listed in Section 1 above). 12 NAMES OF SYSTEM COMPANIES WITH WHICH CONNECTED AS OF DECEMBER 31, 2003
NU NUSCO CL&P Michael G. Morris (1) CHB, P, CEO, T CH, P, CEO, D John H. Forsgren VC, EVP, CFO, T EVP, CFO, D EVP, CFO Cheryl W. Grise PU PU, D CEO, D Charles W. Shivery PC PC, D Kerry J. Kuhlman (2) Gary A. Long (3) Leon J. Olivier P, COO, D Dennis E. Welch Christopher L. Beschler David H. Boguslawski VP VP, D Gregory B. Butler SVP, S, GC SVP, S, GC Mark W. Fagan VP Mary Jo Keating VP Jeffrey R. Kotkin VP Jean M. LaVecchia VP Dana L. Louth VP John M. MacDonald (3) David R. McHale VP, TRS VP, TRS Margaret L. Morton VP James A. Muntz VP William J. Nadeau (4) Raymond P. Necci VP Rodney O. Powell VP Paul E. Ramsey (3) John P. Stack VP, C VP, C VP, C Lisa J. Thibdaue VP Roger C. Zaklukiewicz VP Robert A. Bersak (3) O. Kay Comendul S Randy A. Shoop TRS Daniel P. Venora Patricia A. Wood (2) Cynthia A. Reames (5) Christopher T. Burt (6) Michelle Moezzi (6) Murry K. Staples (7) Gregory C. Picklesimer (7)
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HP&E HWP PSNH Michael G. Morris P, D P, D C, D John H. Forsgren EVP, CFO, D Cheryl W. Grise D D CEO, D Charles W. Shivery Kerry J. Kuhlman D D Gary A. Long P, COO, D Leon J. Olivier Dennis E. Welch Christopher L. Beschler David H. Boguslawski VP, D Gregory B. Butler Mark W. Fagan Mary Jo Keating Jeffrey R. Kotkin Jean M. LaVecchia Dana L. Louth John M. MacDonald VP David R. McHale VP, TRS VP, TRS VP, TRS Margaret L. Morton James A. Muntz William J. Nadeau VP VP Raymond P. Necci Rodney O. Powell Paul E. Ramsey VP John P. Stack VP, C VP, C VP, C Lisa J. Thibdaue Roger C. Zaklukiewicz VP VP VP Robert A. Bersak O. Kay Comendul S, CL S, CL S Randy A. Shoop Daniel P. Venora Patricia A. Wood Cynthia A. Reames Christopher T. Burt Michelle Moezzi Murry K. Staples Gregory C. Picklesimer
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WMECO Mode 1 PI Michael G. Morris C, D P, CEO, D John H. Forsgren EVP, CFO, D D Cheryl W. Grise CEO, D Charles W. Shivery D Kerry J. Kuhlman P, COO, D Gary A. Long P, D Leon J. Olivier Dennis E. Welch Christopher L. Beschler David H. Boguslawski VP, D Gregory B. Butler Mark W. Fagan Mary Jo Keating Jeffrey R. Kotkin Jean M. LaVecchia Dana L. Louth John M. MacDonald David R. McHale VP, TRS VP, TRS VP, TRS Margaret L. Morton James A. Muntz William J. Nadeau Raymond P. Necci Rodney O. Powell Paul E. Ramsey VP, D John P. Stack VP, C VP, C VP, C Lisa J. Thibdaue Roger C. Zaklukiewicz VP Robert A. Bersak S, D O. Kay Comendul S Randy A. Shoop Daniel P. Venora Patricia A. Wood CL Cynthia A. Reames Christopher T. Burt Michelle Moezzi Murry K. Staples Gregory C. Picklesimer
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Quinn. RRR CRC Michael G. Morris John H. Forsgren Cheryl W. Grise D D D Charles W. Shivery Kerry J. Kuhlman P, D Gary A. Long Leon J. Olivier P, D P, D Dennis E. Welch Christopher L. Beschler David H. Boguslawski D D D Gregory B. Butler Mark W. Fagan Mary Jo Keating Jeffrey R. Kotkin Jean M. LaVecchia Dana L. Louth John M. MacDonald David R. McHale VP, TRS VP, TRS Margaret L. Morton James A. Muntz William J. Nadeau Raymond P. Necci Rodney O. Powell Paul E. Ramsey John P. Stack VP, C VP, C VP, C Lisa J. Thibdaue Roger C. Zaklukiewicz VP VP Robert A. Bersak O. Kay Comendul S S Randy A. Shoop TRS Daniel P. Venora Patricia A. Wood CL Cynthia A. Reames D Christopher T. Burt Michelle Moezzi Murry K. Staples Gregory C. Picklesimer
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Conn Steam Nutmeg Power EPI Michael G. Morris John H. Forsgren Cheryl W. Grise D D D Charles W. Shivery Kerry J. Kuhlman Gary A. Long Leon J. Olivier Dennis E. Welch Christopher L. Beschler David H. Boguslawski P P P Gregory B. Butler Mark W. Fagan Mary Jo Keating Jeffrey R. Kotkin Jean M. LaVecchia Dana L. Louth John M. MacDonald David R. McHale Margaret L. Morton James A. Muntz William J. Nadeau Raymond P. Necci Rodney O. Powell Paul E. Ramsey John P. Stack VP, C VP, C VP, C Lisa J. Thibdaue Roger C. Zaklukiewicz Robert A. Bersak O. Kay Comendul S, D S, D S, D Randy A. Shoop TRS TRS TRS Daniel P. Venora D D D Patricia A. Wood Cynthia A. Reames Christopher T. Burt Michelle Moezzi Murry K. Staples Gregory C. Picklesimer
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CL&P Cap. (8) YES YEFSCO Michael G. Morris C, D C, D John H. Forsgren EVP, CFO, D EVP, CFO, D Cheryl W. Grise CEO, D CEO, D Charles W. Shivery Kerry J. Kuhlman Gary A. Long Leon J. Olivier Dennis E. Welch P, COO, D P, COO, D Christopher L. Beschler David H. Boguslawski Gregory B. Butler SVP, S, GC SVP, S, GC Mark W. Fagan Mary Jo Keating Jeffery R. Kotkin Jean M. LaVecchia Dana L. Louth John M. MacDonald David R. McHale VP, TRS VP, TRS Margaret L. Morton James A. Muntz William J. Nadeau Raymond P. Necci Rodney O. Powell Paul E. Ramsey John P. Stack VP, C VP, C Lisa J. Thibdaue Roger C. Zaklukiewicz Robert A. Bersak O. Kay Comendul Randy A. Shoop Daniel P. Venora Patricia A. Wood Cynthia A. Reames Christopher T. Burt Michelle Moezzi Murry K. Staples Gregory C. Picklesimer
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YGSCO YESCO NORCONN Michael G. Morris C, D C, D C, D John H. Forsgren EVP, CFO, D EVP, CFO, D EVP, CFO, D Cheryl W. Grise CEO, D CEO, D CEO, D Charles W. Shivery Kerry J. Kuhlman Gary A. Long Leon J. Olivier Dennis E. Welch P, COO, D P, COO, D P, COO, D Christopher L. Beschler VP David H. Boguslawski Gregory B. Butler SVP, S, GC SVP, S, GC SVP, S, GC Mark W. Fagan Mary Jo Keating Jeffrey R. Kotkin Jean M. LaVecchia Dana L. Louth John M. MacDonald David R. McHale VP, TRS VP, TRS VP, TRS Margaret L. Morton James A. Muntz William J. Nadeau Raymond P. Necci Rodney O. Powell Paul E. Ramsey John P. Stack VP, C VP, C VP, C Lisa J. Thibdaue Roger C. Zaklukiewicz Robert A. Bersak O. Kay Comendul Randy A. Shoop Daniel P. Venora Patricia A. Wood Cynthia A. Reames Christopher T. Burt Michelle Moezzi Murry K. Staples Gregory C. Picklesimer
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HOUSATONIC RMS CLP FUNDING (9) Michael G. Morris C, D John H. Forsgren EVP, CFO, D Cheryl W. Grise CEO, D Charles W. Shivery Kerry J. Kuhlman Gary A. Long Leon J. Olivier Dennis E. Welch P, COO, D Christopher L. Beschler David H. Boguslawski D, MC Gregory B. Butler SVP, S, GC Mark W. Fagan Mary Jo Keating Jeffrey R. Kotkin Jean M. LaVecchia Dana L. Louth John M. MacDonald David R. McHale VP, TRS Margaret L. Morton James A. Muntz William J. Nadeau Raymond P. Necci Rodney O. Powell D, MC Paul E. Ramsey John P. Stack VP, C VP, TRS Lisa J. Thibdaue Roger C. Zaklukiewicz Robert A. Bersak O. Kay Comendul S Randy A. Shoop P, D, MC Daniel P. Venora Patricia A. Wood E. Edward Booker Christopher T. Burt D, MC Michelle Moezzi D, MC Murry K. Staples P, CEO, D Gregory C. Picklesimer S, TRS
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PSNH FUNDING (10) PSNH FUNDING 2(10) WMECO FUNDING (11) Michael G. Morris John H. Forsgren Cheryl W. Grise Charles W. Shivery Kerry J. Kuhlman D, MC Gary A. Long D, MC D, MC Leon J. Olivier Dennis E. Welch Christopher L. Beschler David H. Boguslawski D, MC Gregory B. Butler Mark W. Fagan Mary Jo Keating Jeffrey R. Kotkin Jean M. LaVecchia Dana L. Louth John M. MacDonald David R. McHale Margaret L. Morton James A. Muntz William J. Nadeau Raymond P. Necci Rodney O. Powell Paul E. Ramsey D, MC D, MC John P. Stack VP, TRS VP, TRS VP, TRS Lisa J. Thibdaue Roger C. Zaklukiewicz Robert A. Bersak O. Kay Comendul S S S Randy A. Shoop P, D, MC P, D, MC P, D, MC Daniel P. Venora Patricia A. Wood Cynthia A. Reames Christopher T. Burt D, MC D, MC D, MC Michelle Moezzi D, MC D, MC D, MC Murry K. Staples Gregory C. Picklesimer
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NAEC NAESCO NNECO Michael G. Morris P, CEO, D P, CEO, D P, CEO, D John H. Forsgren D D D Cheryl W. Grise D D D Charles W. Shivery Kerry J. Kuhlman Gary A. Long Leon J. Olivier Dennis E. Welch Christopher L. Beschler David H. Boguslawski Gregory B. Butler Mark W. Fagan Mary Jo Keating Jeffrey R. Kotkin Jean M. LaVecchia Dana L. Louth John M. MacDonald David R. McHale VP, TRS VP, TRS VP, TRS Margaret L. Morton James A. Muntz William J. Nadeau Raymond P. Necci Rodney O. Powell Paul E. Ramsey John P. Stack Lisa J. Thibdaue Roger C. Zaklukiewicz Robert A. Bersak O. Kay Comendul S S S Randy A. Shoop Daniel P. Venora Patricia A. Wood Cynthia A. Reames Christopher T. Burt Michelle Moezzi Murry K. Staples Gregory C. Picklesimer
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COE SESI HEC/CJTS William W. Schivley CHB, D James B. Redden (12) P, D P, D Armando J. Barone (13) Joseph F. Bellefeuille (14) Richard J. Cohen (15) Annette M. Durnack (15) Stephen J. Fabiani Linda A. Jensen (12) VP, TRS, CL TRS, S, D William J. Nadeau D John J. Roman Frank P. Sabatino VP, D Jeffrey M. Warren (14) Carol L. Carver (12) Christopher Fogarty (14) Frederic Lee Klein S John M. Boardman Dennis R. Brown (4) Thomas M. Driscoll (16) Michael A. Paolella (4) Christopher T. Burt D Alan J. Giantomaso (17) D Michelle Moezzi D Neil Petchers (18) Barbara Casey (12) Britta MacIntosh (12) Scott Silver (18) Brian J. Grosjean (4) Richard C. Neugebaur (19) Michael J. Giarratano (19) Stephen C. Persutti (4)
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ERI/HEC (20) HTEP RFS William W. Schivley James B. Redden MC P, D D Armando J. Barone Joseph F. Bellefeuille SVP Richard J. Cohen John J. Roman Annette M. Durnack Stephen J. Fabiani D Linda A. Jensen TRS VP, TRS, CL, D TRS William J. Nadeau Frank P. Sabatino Jeffrey M. Warren VP Carol L. Carver S Christopher Fogarty Frederic Lee Klein John M. Boardman Dennis R. Brown Thomas M. Driscoll Michael A. Paolella Christopher T. Burt Alan J. Giantomaso Michelle Moezzi Neil Petchers VC, MC Barbara Casey S Britta MacIntosh C, MC Scott Silver MC Brian J. Grosjean Richard C. Neugebaur Michael J. Giarratano Stephen C. Persutti
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NEI NGC NGS William W. Schivley VP, D D James B. Redden Armando J. Barone Joseph F. Bellefeuille Richard J. Cohen Annette M. Durnack Stephen J. Fabiani Linda A. Jensen William J. Nadeau VP VP, COO, D John J. Roman VP, C Frank P. Sabatino VP VP Jeffrey M. Warren Carol L. Carver Christopher Fogarty Frederic Lee Klein S S S John M. Boardman Dennis R. Brown D Thomas M. Driscoll Michael A. Paolella Christopher T. Burt Alan J. Giantomaso Michelle Moezzi Neil Petchers Barbara Casey Britta MacIntosh Scott Silver Brian J. Grosjean Richard C. Neugebaur Michael J. Giarratano Stephen C. Persutti
25
WEC WNS GREENPORT (21) William W. Schivley James B. Redden Armando J. Barone Joseph F. Bellefeuille Richard J. Cohen Annette M. Durnack Stephen J. Fabiani Linda A. Jensen William J. Nadeau VP, COO, D VP, COO, D John J. Roman Frank P. Sabatino Jeffrey M. Warren Carol L. Carver Christopher Fogarty Frederic Lee Klein S S John M. Boardman Dennis R. Brown Thomas M. Driscoll D D Michael A. Paolella Christopher T. Burt Alan J. Giantomaso Michelle Moezzi Neil Petchers Barbara Casey Britta MacIntosh Scott Silver Brian J. Grosjean D Richard C. Neugebaur D Michael J. Giarratano P Stephen C. Persutti VP, S, TRS
26
Select SENY SECI William W. Schivley P, D P, D James B. Redden P, D Armando J. Barone VP Joseph F. Bellefeuille SVP Richard J. Cohen VP Annette M. Durnack VP Stephen J. Fabiani VP, D D D Linda A. Jensen TRS William J. Nadeau John J. Roman Frank P. Sabatino SVP, D D Jeffrey M. Warren VP Carol L. Carver CL Christopher Fogarty C Frederic Lee Klein S S John M. Boardman C TRS Dennis R. Brown Thomas M. Driscoll Michael A. Paolella Christopher T. Burt Alan J. Giantomaso Michelle Moezzi Neil Petchers Barbara Casey Britta MacIntosh Scott Silver Brian J. Grosjean Richard C. Neugebaur Michael J. Giarratano Stephen C. Persutti
27
ESB NGSM William W. Schivley James B. Redden Armando J. Barone Joseph F. Bellefeuille Richard J. Cohen Annette M. Durnack Stephen J. Fabiani Linda A. Jensen William J. Nadeau VP, COO, D VP, COO, D John J. Roman Frank P. Sabatino Jeffrey M. Warren Carol L. Carver Christopher Fogarty Frederic Lee Klein S S John M. Boardman Dennis R. Brown Thomas M. Driscoll D Michael A. Paolella D Christopher T. Burt Alan J. Giantomaso Michelle Moezzi Neil Petchers Barbara Casey Britta MacIntosh Scott Silver Brian J. Grosjean Richard C. Neugebaur Michael J. Giarratano Stephen C. Persutti
28
CYAPCO YAEC MYAPCO Bruce D. Kenyon (22) CEO, D, CHB CEO, D, CHB D Richard M. Kacich (23) P D Wayne Norton (22) P, D Thomas W. Bennet, Jr. (23) VP, CFO VP, CFO Kenneth J. Heider (22) VP Gregory A. Maret (23) VP Gerald Garfield (24) GC Merrill J. Atkins (23) AGC, S AGC, CL Kethleen Jewell-Kelleher (23) TRS, C TRS, C Michael J. Hager (25) D D D William S. Hass (25) D D D Neven Rabadjija (26) D D Robert H. Martin (27) D D D Raymond P. Necci D D Frederic E. Greenman (28) D D D Stephen W. Page (29) D D D Randy A. Shoop D D William J. Quinlan D James A. Muntz D Frank Rothen (30) D James F. Crowe (22) D Gerald C. Poulin (31) D D CHB, D Ted C. Feigenbaum (32) P, CEO Michael J. Meisner (32) VP, CNO Michael E. Thomas (32) VP, CFO Carrie D. Guerrette (32) TRS William M. Finn (33) S Joseph D. Fay (32) CL Brent M. Boyles (34) D Sara J. Burns (33) D Curtis I. Call (35) D James L. Connors (36) D Robert J. DeAngelo D R. Scott Mahoney (33) D Peter J. Moynihan (37) D Thomas E. Murley (38) D Kirk L. Ramsauer (39) D
29 The principal business address of the individuals listed above is 107 Selden Street, Berlin, Connecticut 06037, except as otherwise noted. (1) Retired effective January 1, 2004. (2) Principal business address is: Western Massachusetts Electric Company, 174 Brush Hill Avenue, West Springfield, Massachusetts 01089. (3) Principal business address is: Public Service Company of New Hampshire, 780 N. Commercial Street, Manchester, New Hampshire 03101. (4) Principal business address is: Northeast Generation Services Company, 301 Hammer Mill Road, Rocky Hill, Connecticut 06043. (5) Principal business address is: AMACAR Group, 6526 Morrison Boulevard, Suite 318, Charlotte, North Carolina 28211. (6) Principal business address is: Global Securitization Services, LLC, 114 West 47th Street, Suite 1715, New York, New York 10036. (7) Principal business address is: R. M. Services, Inc., 222 Pitkin Street, East Hartford, Connecticut 06108. (8) CL&P Capital is a partnership in which CL&P serves as general partner. (9) CLP Funding LLC is a Delaware limited liability company formed to issue rate reduction bonds. CL&P is the sole member. (10) PSNH Funding LLC and PSNH Funding LLC2 are Delaware limited liability companies formed to issue rate reduction bonds. PSNH is the sole member of each. (11) WMECO Funding LLC is a Delaware limited liability company formed to issue rate reduction bonds. WMECO is the sole member. (12) Principal business address is: Select Energy Services, Inc., 24 Prime Parkway, Natick, Massachusetts 01760. (13) Principal business address is: Select Energy Contracting, Inc., 383 Middle Street, Suite 101, Bristol, Connecticut 06010. (14) Principal business address is: Select Energy Contracting, Inc., 605 Front Street, Manchester, New Hampshire 03102. (15) Principal business address is: Select Energy New York, Inc., 507 Plum Street, Syracuse, New York 13204. (16) Principal business address is: E. S. Boulos Company, Five Star Industrial Park, Westbrook, Maine 04092. (17) Principal business address is: Select Energy Services, Inc., 811 Jericho Turnpike, Suite 101 W, Smithtown, New York 11787. (18) Principal business address is: ERI Services, Inc., 350 Fairfield Avenue, Bridgeport, Connecticut 06604. (19) Principal business address is: Hawkeye Electric, LLC, 2 Access Road, Patchogue, New York 11772. (20) ERI/HEC EFA-Med, LLC is a Delaware limited liability company formed to perform energy services work for the United States Navy. Select Energy Services, Inc. owns 50% membership interest and ERI Services, Inc., owns 50% membership ownership interest. (21) Greenport Power, LLC is a New York limited liability company formed to construct a peaking power plant for Global Common LLC in Greenport, Long Island, New York. Northeast Generation Services Company owns 50% membership interest and Hawkeye Electric, LLC owns 50% membership ownership interest. 30 (22) Principal business address is: Connecticut Yankee Atomic Power Company, 362 Injun Hollow Road, East Hampton, Connecticut 06424. (23) Principal business address is: Yankee Atomic Electric Company, 19 Midstate Drive, Auburn, Massachusetts 01501. (24) Principal business address is: Day, Berry & Howard LLP, CityPlace I, Hartford, Connecticut 06103. (25) Principal business address is: 55 Bearfoot Road, Northboro, Massachusetts 01532. (26) Principal business address is: NSTAR Electric & Gas Corporation, 800 Boylston Street, 17th Floor, Boston, Massachusetts 02199. (27) Principal business address is: NSTAR Electric & Gas Corporation, One NSTAR Way, NE220, Westwood, Massachusetts 02090. (28) Principal business address is: National Grid USA Service Company, Inc., 42 Fuller Brook Road, Wellesley, Massachusetts 02181. (29) Principal business address is: Central Vermont Public Service Corp., 77 Grove Street, Rutland, Vermont 05701 (30) Principal business address is: 188 Great Neck Road, Waterford, Connecticut 06385. (31) Principal business address is: 64 Tallwood Drive, Readfield, Maine 04355. (32) Principal business address is: Maine Yankee Atomic Power Company, 321 Old Fery Road, Wiscasset, Maine 04578. (33) Principal business address is: Central Maine Power Company, Edison Drive, Augusta, Maine 04336. (34) Principal business address is: Maine Public Service Company, 209 State Street, P. O. Box 1209, Presque Isle, Maine 04769. (35) Principal business address is: Energy East Management Corporation, 52 Farm View Drive, New Gloucester, Maine 04260. (36) Principal business address is: EMERA Energy, Inc., 1894 Barrington Street, Barrington Tower, Halifax, Nova Scotia, Canada B3J2A8. (37) Principal business address is: 103 Brookside Road, Portland, Maine 04103. (38) Principal business address is: 9106 McDonald Drive, Bethesda, Maryland 20817. (39) Principal business address is: National Grid USA Service Company, Inc., 25 Research Drive, Westborough, Massachusetts 01582. 31 KEY: AGC - Assistant General Counsel AT - Associate Trustee AVP - Assistant Vice President C - Controller CAO - Chief Administrative Officer CEO - Chief Executive Officer CFO - Chief Financial Officer CIO - Chief Information Officer CH - Chairman CHB - Chairman of the Board CH(E) - Chairman of the Executive Committee CL - Clerk COMP - Comptroller CNO - Chief Nuclear Officer D - Director DS - Director of Services EVP - Executive Vice President ED - Executive Director GC - General Counsel MC - Member of Management Committee P - President PC - President - Competitive Group PG - President - Generation Group PN - President - Nuclear Group PU - President - Utility Group PCT - President - Connecticut Division PNH - President - New Hampshire Division S - Secretary SVP - Senior Vice President T - Trustee TRS - Treasurer VC - Vice Chairman VP - Vice President NU - Northeast Utilities ESB - E. S. Boulos Company CL&P - The Connecticut Light and Power Company CL&P Cap. - CL&P Capital, L.L.C. CL&P Funding - CL&P Funding LLC COE - Charter Oak Energy, Inc. Conn Steam - The Connecticut Steam Company CRC - CL&P Receivables Corporation CYAPCO - Connecticut Yankee Atomic Power Company EPI - Electric Power, Incorporated ERI/HEC - ERI/HEC EFA-Med, LLC GREENPORT - Greenport Power, LLC HEC/CJTS - HEC/CJTS Energy Center LLC HOUSATONIC - Housatonic Corporation HWP - Holyoke Water Power Company Mode 1 - Mode 1 Communications, Inc. MYAPCO - Maine Yankee Atomic Power Company NAEC - North Atlantic Energy Corporation NAESCO - North Atlantic Energy Service Corporation NGC - Northeast Generation Company NGS - Northeast Generation Services Company NGSM - NGS Mechanical, Inc. NNECO - Northeast Nuclear Energy Company NORCONN - NorConn Properties, Inc. NUEI - NU Enterprises, Inc. NUSCO - Northeast Utilities Service Company Nutmeg Power - The Nutmeg Power Company PI - Properties, Inc. PSNH - Public Service Company of New Hampshire 32 PSNH Funding - PSNH Funding LLC PSNH Funding 2 - PSNH Funding LLC 2 Quinn. - The Quinnehtuk Company RFS - Reeds Ferry Supply Co., Inc. RMS - R. M. Services, Inc. RRR - The Rocky River Realty Company SECI - Select Energy Contracting, Inc. Select - Select Energy, Inc. SENY - Select Energy New York, Inc. SESI - Select Energy Services, Inc. WES - Woods Electrical Co., Inc. WMECO - Western Massachusetts Electric Company WMECO Funding - WMECO Funding LLC WNS - Woods Network Services, Inc. YES - Yankee Energy System, Inc. YEFSCO - Yankee Energy Financial Services Company YESCO - Yankee Energy Services Company YGSCO - Yankee Gas Services Company YAEC - Yankee Atomic Electric Company Part II. The following is a list of the officers, Directors and Trustees who have financial connections within the provisions of Section 17(c) of the Act. Name and Position Name of Location of Held in Applicable Officer or Financial Financial Exemption Director Institution Institution Rule* (1) (2) (3) (4) Cotton M. Cleveland Ledyard National Bank Director A Ledyard, New Hampshire James F. Cordes Comerica Bank Director B Texas Michael G. Morris Webster Financial Director A, C, E, F Corporation Waterbury, CT "A" designates Rule 70(a) "B" designates Rule 70(b) "C" designates Rule 70(c) "D" designates Rule 70(d) "E" designates Rule 70(e) "F" designated Rule 70(f) 33 ITEM 6. OFFICERS AND DIRECTORS (Continued) Part III. The information provided herein is applicable to all system companies, except as indicated otherwise. a. The compensation of Trustees, Directors, and Executive Officers of system companies: i. Compensation of NU Trustees Each Trustee who is not an employee of Northeast Utilities or its subsidiaries receives an annual retainer of $20,000 payable quarterly. The Chair of the Audit Committee is paid an additional annual retainer of $10,000, the Chair of the Compensation Committee is paid an additional annual retainer of $5,000, and the Chairs of the Corporate Affairs, Corporate Governance, and Finance Committees are paid an additional annual retainer of $4,000 ($3,750 in 2003), each payable quarterly. In addition to the above compensation, The Lead Trustee is paid an additional annual retainer of $50,000 ($40,000 in 2003) payable quarterly for the extra services performed as Lead Trustee. A non-employee Trustee receives $1,500 ($1,000 prior to July 1, 2003) and $1,000 for each meeting attended of the Board or its Committees, respectively, or, for participation in a meeting by conference telephone, $1,000 for a Board meeting and $675 for a Committee meeting. However, members of the Audit Committee will receive $1,000 for certain meetings held by conference telephone during 2004. A non-employee Trustee who is asked by either the Board of Trustees or the Chairman of the Board to perform extra Board-related services in the interest of the Northeast Utilities system may receive additional compensation of $750 per half-day ($1,000 per day prior to July 1, 2003) plus necessary expenses. In December 2003 the Board elected Dr. Kennan as interim Chairman of the Board and formed a Search Committee following Mr. Morris's announced retirement. In January 2004, the Compensation Committee approved compensation for the interim Chairman of the Board and for members of the Search Committee. During her tenure as interim Chairman of the Board, which ended upon the election of Mr. Shivery as a Trustee and as Chairman of the Board, President and Chief Executive Officer on March 29, 2004, Dr. Kennan was paid $40,000 per month in lieu of all retainers and meeting fees, and Dr. Kennan received $20,000 additional compensation for extra services performed during December 2003. Members of the Search Committee (except for Dr. Kennan) received a one-time payment of $10,000, and the Chair of the Search Committee (Mr. Cordes) received a one-time payment of $20,000, in lieu of normal meeting fees for all meetings of the Search Committee held during the search for a new chief executive officer for the Company. Under the terms of the Northeast Utilities Incentive Plan, each non-employee Trustee is also eligible for stock-based grants. During 2003, each non-employee Trustee received 2,000 common shares of Northeast Utilities, and was granted 1,000 restricted common shares under the Incentive Plan, which vested in March 2004, subject in each case to any deferral election in effect. In January 2004, Dr. Kennan was granted 5,000 restricted share units and each other non-employee Trustee was granted 3,000 restricted share units under the Incentive Plan. A portion of these units is subject to forfeiture if the Trustee leaves the Board prior to January 10, 2005. Absent forfeiture, and subject to any deferral election in effect, half of these units will be paid as newly-issued shares in January 2005 and half will be paid as newly-issued shares in January 2009. Prior to the beginning of each calendar year, non-employee Trustees may irrevocably elect to have all or any portion of their retainers and fees paid in the form of common shares of Northeast Utilities. Pursuant to the Northeast Utilities Deferred Compensation Plan for Trustees, each Trustee may also irrevocably elect to defer receipt of some or all cash and/or share compensation. 34 ii. Compensation of Subsidiary Directors Employees serving as Directors of CL&P, PSNH and WMECO receive no special compensation on account of such service. CL&P, PSNH and WMECO had no non-employee Directors during 2003. During 2002 each non-employee Director of PSNH and WMECO was compensated at an annual rate of $10,000 cash, and received $500 for each meeting attended of the Board of Directors or, in the case of PSNH, its committees. A non-employee Director who participated in a meeting of the Board of Directors or any of its committees by conference telephone received $300 per meeting. Also, committee chairs were compensated at an additional annual rate of $1,500. iii. Compensation of Executive Officers SUMMARY COMPENSATION TABLE The following tables present the cash and non-cash compensation received by the Chief Executive Officer and the next four highest paid executive officers of NU, CL&P, PSNH, and WMECO during 2003, in accordance with rules of the SEC:
------------------------------------------------------------------------------------------------------ Annual Compensation Long-Term Compensation ------------------- ----------------------------------- Awards Payouts ------------------------ --------- Restricted Securities Long-Term All Stock Underlying Incentive Other Other Annual Award(s) Options/Stock Program Compensa- Name and Salary Bonus Compensation ($) Appreciation Payouts tion ($) Principal Position Year ($) ($) (Note 2) (Note 3) Rights (#) ($) (Note 3) Michael G. Morris 2003 957,692 2,600,000 227,914 1,060,500 - - 28,731 Chairman of the Board, President 2002 915,385 558,000 209,883 - 630,600 - 27,462 and Chief Executive Officer of NU and 2001 900,000 869,805 238,924 - 220,000 - 27,000 Chairman of PSNH and WMECO (Note 4) John H. Forsgren 2003 574,615 1,086,175 17,384 427,495 - - 187,574 Executive Vice President and 2002 556,154 165,000 - - 54,400 - 179,674 Chief Financial Officer and Vice 2001 524,423 200,000 - - 98,000 - 5,100 Chairman of NU Charles W. Shivery 2003 554,616 674,000 8,946 220,004 - - 16,639 President - Competitive Group 2002 306,731 200,000 244,594 - 29,204 - 7,615 of NU (NU Table only (See Note 5) 2001 - - - - - - - Cheryl W. Grise 2003 451,538 581,513 13,216 324,994 - - 184,587 President - Utility Group of NU 2002 409,231 280,000 - - 39,600 - 180,523 and Chief Executive Officer of CL&P, 2001 338,654 180,000 - - 76,000 - 10,119 PSNH and WMECO Gregory B. Butler 2003 244,615 232,200 4,473 109,995 - - 6,000 Senior Vice Presi- dent, Secretary 2002 206,154 70,000 - - 13,200 - 6,000 and General Counsel of NU and NUSCO 2001 189,269 70,000 - - 7,600 - 5,100 Leon J. Olivier 2003 317,100 275,000 3,192 78,505 - - 18,343 President and Chief Operating Officer 2002 303,908 138,000 - - 9,900 - 9,117 of CL&P (CL&P Table Only) 2001 194,232 123,000 - 100,009 22,500 - -
35 Gary A. Long 2003 185,154 140,000 2,643 65,002 - - 5,555 President and Chief Operating Officer 2002 178,154 70,000 - - 8,100 - 5,345 of PSNH (PSNH Table Only) 2001 171,846 55,000 - - 6,750 - 5,100 Kerry J. Kuhlman 2003 180,015 125,000 2,542 62,499 - - 5,400 President and Chief Operating Officer 2002 173,093 62,000 - - 7,900 - 5,193 of WMECO (WMECO Table Only) 2001 166,846 45,000 - - 6,200 - 5,005
Notes: 1. Other annual compensation for Mr. Morris includes personal use of the Company's airplane, having a cost to the Company of $170,984 in 2003, $180,886 in 2002, and $219,088 in 2001. Other annual compensation for Mr. Shivery in 2002 includes $144,000 of relocation expenses, per his employment agreement. 2. At December 31, 2003, the aggregate restricted stock holdings by the individuals named in the table for NU, CL&P, PSNH and WMECO were 130,773, 122,439, 119,634 and 119,811 common shares of NU, respectively, with a value of $2,637,691, $2,469,595, $2,413,018, and 2,416,588, respectively. Restricted stock was awarded as long term incentive compensation to each of these individuals in 2003, except that Mr. Morris's award was in restricted share units that were forfeited upon his retirement; payment of 50 percent of the 2002 and 2001 annual bonuses of each of Mr. Morris, Mr. Forsgren, and Mrs. Grise was made in the form of restricted shares vesting over three years; payment of 50 percent of the 2003 annual bonuses of each of Mr. Forsgren, Mr. Shivery and Mrs. Grise was made in the form of restricted share units vesting over three years. Dividends on restricted stock are paid out. 3. "All Other Compensation" for 2003 consists of employer matching contributions under the Northeast Utilities Service Company 401k Plan, generally available to all eligible employees (each of Messrs. Morris, Forsgren, Shivery, Butler and Olivier and Mrs. Grise - $6,000, Mr. Long - $5,555 and Mrs. Kuhlman - $5,400) and matching contributions under the Deferred Compensation Plan for Executives (Mr. Morris - $22,731, Mr. Shivery - $10,639, Mrs. Grise - $7,546 and Mr. Olivier - $3,513). For Mr. Forsgren and Mrs. Grise, it also includes vested deferred compensation paid out in 2003 of $181,574 and $171,041, respectively (See Employment Contracts and Termination of Employment and Change in Control Arrangements, Below), and for Mr. Olivier it includes $8,830 in non-qualified pension payments in accordance with his employment agreement. 4. Retired January 1, 2004. 5. Served as interim President of NU effective January 1, 2004 and elected Chairman of the Board, President and Chief Executive Officer of NU on March 29, 2004.
AGGREGATED OPTIONS/SAR EXERCISES IN LAST FISCAL YEAR AND FY-END OPTION/SAR VALUES Shares With Respect to Number of Securities Value of Unexercised Which Underlying Unexercised In-the-Money Options Were Value Options/SARs Options/SARs Exercised Realized at Fiscal Year End (#) at Fiscal Year End ($) Name (#) ($) Exercisable Unexercisable Exercisable Unexercisable ------------------------------------------------------------------------------------------------------ Michael G. Morris 150,000 994,650 863,124 660,402 4,812,597 1,952,103 John H. Forsgren 81,919 153,940 83,464 68,936 33,598 60,048 Charles W. Shivery - - 9,674 19,350 12,286 24,574 Cheryl W. Grise - - 119,492 51,736 217,469 43,809 Gregory B. Butler 15,716 55,726 18,466 11,334 22,589 13,992 Leon J. Olivier - - 9,967 9,933 6,847 11,294 Gary A. Long - - 20,399 7,651 46,669 8,586 Kerry J. Kuhlman - - 21,529 7,335 50,850 8,375 ------------------------------------------------------------------------------------------------------
36 LONG-TERM INCENTIVE PLANS - AWARDS IN LAST FISCAL YEAR Grants of performance units were made during 2003 under the Northeast Utilities Incentive Plan to the Company's officers. Payments will be made in cash following the close of the performance period. Threshold, target, and maximum payouts will be determined based on net income over the performance period. Grants to the executive officers named in the Summary Compensation Table were as follows:
(a) (b) (c) (d) (e) (f) Number of Performance Estimated Future Payouts Shares, or Other Under Non-Stock Price-Based Plans Units or Period Until Other Maturation Rights Or Payout Threshold Target Maximum Name (#) ($) ($) ($) ----- -------- ------------------- --------- ------ ------- Michael G. Morris 10,450 1/1/2003-12/31/2005 418,000 1,045,000 1,463,000 John H. Forsgren 4,275 1/1/2003-12/31/2005 171,000 427,500 598,500 Charles W. Shivery 2,200 1/1/2003-12/31/2005 88,000 220,000 308,000 Cheryl W. Grise 3,250 1/1/2003-12/31/2005 130,000 325,000 455,000 Gregory B. Butler 1,100 1/1/2003-12/31/2005 44,000 110,000 154,000 Leon J. Olivier 785 1/1/2003-12/31/2005 31,400 78,500 109,900 Gary A. Long 650 1/1/2003-12/31/2005 26,000 65,000 91,000 Kerry J. Kuhlman 625 1/1/2003-12/31/2005 25,000 62,500 87,500
b. Their interest in the securities of system companies including options or other rights to acquire securities: NU owns 100 percent of the outstanding common stock of registrants CL&P, PSNH, and WMECO. As of March 1, 2004, (except that Mr. Morris's beneficial ownership is given as of December 31, 2003, his last day as an Executive Officer of these companies) the Directors and Executive Officers of NU, CL&P, PSNH, and WMECO beneficially owned the number of shares of each class of equity securities of NU listed below. No equity securities of CL&P, PSNH, or WMECO are owned by the Directors and Executive Officers of CL&P, PSNH, and WMECO. Unless otherwise noted, each Director and Executive Officer of CL&P, PSNH, and WMECO has sole voting and investment power with respect to the listed shares. Title of Amount and Nature of Percent of Class Name Beneficial Ownership Class NU Common David H. Boguslawski (1) 39,807 (2) NU Common Richard H. Booth (3) 6,000 (2) NU Common Gregory B. Butler (4) 39,832 (2) NU Common Cotton Mather Cleveland (5) 20,232 (2) NU Common Sanford Cloud, Jr. (6) 21,818 (2) NU Common James F. Cordes (3) 11,500 (2) NU Common E. Gail de Planque (5) 20,640 (2) NU Common John H. Forsgren (7) 150,120 (2) NU Common John G. Graham 1,000 (2) NU Common Cheryl W. Grise (8) 182,553 (2) NU Common Elizabeth T. Kennan (9) 18,755 (2) NU Common Kerry J. Kuhlman (10) 37,222 (2) NU Common Gary A. Long (11) 35,715 (2) NU Common Michael G. Morris (12) 974,832 (2) NU Common Leon J. Olivier (13) 22,498 (2) NU Common Robert E. Patricelli (5) 27,522 (2) NU Common Charles W. Shivery (14) 26,406 (2) NU Common John F. Swope (9) 22,361 (2) Amount beneficially owned by Directors and Executive Officers as a group: Amount and Nature of Percent of Company Number of Persons Beneficial Ownership Outstanding NU 15 1,595,658 (15) 1.2% CL&P 7 1,436,049 (16) 1.12% PSNH 7 1,449,265 (16) 1.13% WMECO 7 1,450,773 (16) 1.13% 37 (1) Includes 29,154 shares that could be acquired by Mr. Boguslawski pursuant to currently exercisable options and 3,978 shares as to which Mr. Boguslawski has sole voting and no dispositive power. (2) As of March 1, 2004, each Trustee and Executive Officer of NU and Director and Executive Officer of CL&P, PSNH, or WMECO owned less than one percent of the shares outstanding. (3) Includes 5,000 shares that could be acquired by the beneficial owner pursuant to currently exercisable options. (4) Includes 25,400 shares that could be acquired by Mr. Butler pursuant to currently exercisable options and 5,835 shares as to which Mr. Butler has sole voting and no dispositive power. (5) Includes 12,500 shares that could be acquired by the beneficial owner pursuant to currently exercisable options and 1,000 shares as to which the beneficial owner has sole voting and no dispositive power. (6) Includes 7,500 shares that could be acquired by Mr. Cloud pursuant to currently exercisable options and 1,000 shares as to which Mr. Cloud has sole voting and no dispositive power. (7) Includes 112,598 shares that could be acquired by Mr. Forsgren pursuant to currently exercisable options and 28,343 shares as to which Mr. Forsgren has sole voting and no dispositive power. (8) Includes 141,359 shares that could be acquired by Mrs. Grise pursuant to currently exercisable options, 25,426 shares as to which Mrs. Grise has sole voting and no dispositive power, and 265 shares held by Mrs. Grise's husband as custodian for her children, with whom she shares voting and dispositive power. (9) Includes 12,500 shares that could be acquired by the beneficial owner pursuant to currently exercisable options. (10) Includes 26,230 shares that could be acquired by Mrs. Kuhlman pursuant to currently exercisable options and 3,315 shares as to which Ms. Kuhlman has sole voting and no dispositive power. (11) Includes 25,349 shares that could be acquired by Mr. Long pursuant to currently exercisable options and 3,448 shares as to which Mr. Long has sole voting and no dispositive power. (12) Includes 863,124 shares that could have been acquired by Mr. Morris as of December 31, 2003 pursuant to then exercisable options and 31,732 shares as to which Mr. Morris had sole voting and no dispositive power until his retirement in 2004. (13) Includes 13,266 shares that could be acquired by Mr. Olivier pursuant to currently exercisable options and 5,837 shares as to which Mr. Olivier has sole voting and no dispositive power. (14) Includes 9,674 shares that could be acquired by Mr. Shivery pursuant to currently exercisable options and 12,566 shares as to which Mr. Shivery has sole voting and no dispositive power. (15) Includes 52,416 shares that could be acquired by an executive officer other than those named in the table above pursuant to currently exercisable options, and 19,669 shares beneficially owned by such officer, as to 7,009 of which such officer has sole voting and no dispositive power. (16) Includes 9,674 shares that could be acquired by an executive officer other than those named in the table pursuant to currently exercisable options, 401 shares held in an ESOP by such officer, as to which he has sole voting power and no dispositive power, and 11,670 shares as to which such officer has sole voting and no dispositive power. 38 In addition, NU's proxy statement reflects that NU's trustees and named executive officers owned the following numbers of "restricted share units" and "deferred shares or units" as of March 1, 2004 (except for Mr. Morris, whose ownership is given as of December 31, 2003). "Restricted share units" includes restricted share units issued under the Northeast Utilities Incentive Plan receipt of which has not been deferred. "Deferred shares or units" includes common shares and restricted share units receipt of which has been deferred, and which are recorded in the executive officer's or Trustee's account under the Northeast Utilities Deferred Compensation Plan for Trustees or the Northeast Utilities Deferred Compensation Plan for Executives. In each case the named individual has neither voting nor dispositive power with respect to these deferred shares or deferred restricted share units nor the ability to obtain beneficial ownership of the shares represented thereby within 60 days. Name Number of Number of ---- Restricted Share Units Deferred Shares and Units ---------------------- ------------------------- Richard H. Booth 0 7,689 Gregory B. Butler 13,021 0 Cotton Mather Cleveland 0 5,935 Sanford Cloud, Jr. 3,000 889 James F. Cordes 3,000 3,083 E. Gail de Planque 0 3,000 John H. Forsgren 51,442 0 John G. Graham 0 7,600 Cheryl W. Grise 35,326 1,539 Elizabeth T. Kennan 0 8,083 Michael G. Morris 75,000 6,052 Robert E. Patricelli 3,000 0 Charles W. Shivery 30,000 1,119 John F. Swope 0 5,048 SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS The following table sets forth the number of Common Shares of Northeast Utilities issuable under the equity compensation plans of the Northeast Utilities System, as well as their weighted exercise price, in accordance with the rules of the SEC:
Number of securities Number of securities Weighted-average remaining available for to be issued upon exercise price of future issuance under exercise of outstanding equity compensation plans outstanding options, options, warrants (excluding securities Plan Category warrants and rights and rights reflected in column (a)) ---------------------------------------------------------------------------------------- (a) (b) (c) ---------------------------------------------------------------------------------------- Equity 3,225,593 $17.033 See Note 1 compensation plans approved by security holders Equity 350,000 $ 9.625 None compensation plans not approved by security holders Total 3,575,593 $16.308 See Note 1
Notes to table: 1. Under the Northeast Utilities Incentive Plan, 5,385,371 shares were available for issuance as of December 31, 2003. In addition, an amount equal to one percent of the outstanding shares as of the end of each year becomes available for issuance under the Incentive Plan the following year. Under the Northeast Utilities Employee Share Purchase Plan II, 6,921,265 additional shares are available for issuance. Each such plan expires in 2008. 39 SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE Section 16(a) of the Securities Exchange Act of 1934 requires Trustees and certain officers of Northeast Utilities and persons who beneficially own more than ten percent of the outstanding common shares of Northeast Utilities to file reports of ownership and changes in ownership with the Securities and Exchange Commission (SEC) and the New York Stock Exchange. Based on such reports, or written representations that no Form 5 was required, Northeast Utilities believes that for the year ended December 31, 2003, all such reporting requirements were complied with in a timely manner. c. Their contracts and transactions with system companies: Northeast Utilities has entered into an employment agreement with Mr. Morris and NUSCO has entered into employment agreements or arrangements with Messrs. Butler, Forsgren, Olivier and Shivery and Mrs. Grise; Mr. Olivier and each of the other named executive officers participate in the Special Severance Program for Officers of Northeast Utilities Companies. The agreements and the Special Severance Program are also binding on Northeast Utilities and on certain majority-owned subsidiaries of Northeast Utilities. The agreements with Messrs. Morris, Shivery, Butler and Forsgren and Mrs. Grise obligate the officer to perform such duties as may be directed by the NUSCO Board of Directors or the Northeast Utilities Board of Trustees, protect the Company's confidential information, refrain, while employed by the Company and for a period of time thereafter, from competing with the Company in a specified geographic area, and provide that the officer's base salary will not be reduced below certain levels without the consent of the officer. These agreements also provide that the officer will participate in specified benefits under the Supplemental Executive Retirement Plan or other supplemental retirement programs and/or in certain executive incentive programs at specified incentive opportunity levels, for a specified employment term and for automatic one-year extensions of the employment term unless at least six months' notice of non-renewal is given by either party. The employment term may also be ended by the Company for "cause", as defined, at any time (in which case no supplemental retirement benefit, if any, shall be due), or by the officer on thirty days' prior written notice for any reason. Absent "cause", the Company may remove the officer from his or her position on sixty days' prior written notice, but in the event the officer is so removed and signs a release of all claims against the Company, the officer will receive one or two years' base salary and annual incentive payments, specified employee welfare and pension benefits, and vesting of specified long-term incentive compensation. Under the terms of these agreements and the Special Severance Program, upon any termination of employment following a change of control, as defined, between (a) the earlier of the date shareholders approve a change of control transaction or a change of control transaction occurs and (b) the earlier of the date, if any, on which the Board of Trustees abandons the transaction or the date two years following the change of control, if the officer signs a release of all claims against the Company, the officer will be entitled to certain payments including a multiple (not to exceed three) of "base compensation", as defined, annual incentive payments, specified employee welfare and pension benefits, and vesting of stock appreciation rights, options and restricted stock. Certain of the change of control provisions may be modified by the Board of Trustees prior to a change of control, on at least two years' notice to the affected officer(s). Besides the terms described above, the agreements of Messrs. Morris, Shivery and Forsgren provide for a specified salary, cash, restricted stock and/or stock options upon employment, special incentive programs and/or special retirement benefits. The agreements of Mr. Forsgren and Mrs. Grise were supplemented during 2001 to provide for special deferred compensation of $520,000 and $500,000, respectively, vesting in even installments (adjusted to reflect investment performance) on June 28, 2002, 2003 and 2004, so long as such officer remains in the employ of Northeast Utilities Service Company, and vesting sooner in the event of a change of control of the Company or involuntary termination without cause. Letter agreements reflecting the terms of employment of Messrs. Boguslawski and Olivier provide for specified salary, cash, restricted stock, stock options or other benefits upon employment. 40 The descriptions of the various agreements set forth above are for purpose of disclosure in accordance with the proxy and other disclosure rules of the SEC and shall not be controlling on any party; the actual terms of the agreements themselves determine the rights and obligations of the parties. d. Their indebtedness to system companies: No Trustee, Director or executive officer was indebted to a system company during 2003. e. Their participation in bonus and profit-sharing arrangements and other benefits: Besides the discussion of compensation in Part III, Section (a) above, see the following: PENSION BENEFITS The tables on the following page show the estimated annual retirement benefits payable to an executive officer of Northeast Utilities upon retirement, assuming that retirement occurs at age 65 and that the officer is at that time not only eligible for a pension benefit under the Northeast Utilities Service Company Retirement Plan (the Retirement Plan) but also eligible for either the make-whole benefit or the make-whole benefit plus the target benefit under the Supplemental Executive Retirement Plan for Officers of Northeast Utilities System Companies (the Supplemental Plan). The Supplemental Plan is a non-qualified pension plan providing supplemental retirement income to system officers. The make-whole benefit under the Supplemental Plan, available to all officers, makes up for benefits lost through application of certain tax code limitations on the benefits that may be provided under the Retirement Plan, and includes as "compensation" awards under the executive incentive plans and deferred compensation (as earned). The target benefit further supplements these benefits and is available to officers at the Senior Vice President level and higher who are selected by the Board of Trustees to participate in the target benefit and who remain in the employ of Northeast Utilities companies until at least age 60 (unless the Board of Trustees sets an earlier age). Mr. Morris's Employment Agreement provides that upon retirement he will be entitled to receive a special retirement benefit calculated by applying the benefit formula of the CMS Energy/Consumers Energy Company (CMS) Supplemental Executive Retirement Plan to all compensation earned from the Northeast Utilities system (the Company) and to all service rendered to the Company and CMS. Mr. Morris's Employment Agreement also provides that if he retired after age 60, his special retirement benefit would be no less than that which he would have received had he been eligible for a make-whole benefit plus a target benefit under the Supplemental Plan. Messrs. Butler, Forsgren, and Shivery and Mrs. Grise are currently eligible for a make-whole plus a target benefit. Messrs. Olivier and Long and Mrs. Kuhlman are eligible for the make-whole benefit but not the target benefit. Mr. Forsgren's Employment Agreement provides for supplemental pension benefits based on crediting up to ten years of additional service and providing payments equal to 25 percent of final average compensation (not to exceed 170 percent of highest average base compensation received in any 36 month period) for up to 15 years following retirement, reduced by four percentage points for each year that his age is less than 65 years at retirement. In addition, if Mr. Forsgren retires after age 58, he will be eligible for a make-whole plus a target benefit under the Supplemental Plan based on crediting three extra years of service, unreduced for early commencement. Mr. Shivery's Employment Agreement provides for a special retirement benefit, following completion of five years of service with the Company, consisting of the excess over benefits otherwise payable from the Retirement Plan and the Supplemental Plan needed to give him the equivalent of fully-vested benefits under the Retirement Plan and the Supplemental Plan calculated by adding three additional years to his actual service and utilizing an early commencement reduction factor of 2 percent per year for each year younger than age 65 at commencement, if better than the factors then in use under the Retirement Plan. The terms of Mr. Olivier's employment provide for certain supplemental pension benefits in lieu of a make-whole benefit if certain requirements are met, in order to provide a benefit similar to that provided by his previous employer. If Mr. Olivier remains in continuous employment with the Company until September 10, 2011 (or earlier with the Company's permission), he will be eligible for a special benefit, subject to reduction for 41 termination prior to age 65, of three percent of Final Average Compensation for each of his first 15 years of service since September 10, 2001 plus one percent of Final Average Compensation for each of the second 15 years of service. Alternatively, if he does not voluntarily terminate his employment with the Company prior to his 60th birthday, or upon earlier termination upon a Change of Control, as defined in the Special Severance Program, he may receive upon retirement a lump sum payment of $2,050,000 in lieu of the make-whole benefit and the benefit described in the preceding sentence. ANNUAL BENEFIT FOR OFFICERS ELIGIBLE FOR MAKE-WHOLE BENEFIT Final Years of Credited Service Average Compensation 15 20 25 30 35 $200,000 $43,264 $57,686 $72,107 $86,760 $101,413 $250,000 $54,514 $72,686 $90,857 $109,260 $127,663 $300,000 $65,764 $87,686 $109,607 $131,760 $153,913 $350,000 $77,014 $102,686 $128,357 $154,260 $180,163 $400,000 $88,264 $117,686 $147,107 $176,760 $206,413 $450,000 $99,514 $132,686 $165,857 $199,260 $232,663 $500,000 $110,764 $147,686 $184,607 $221,760 $258,913 $600,000 $133,264 $177,686 $222,107 $266,760 $311,413 $700,000 $155,764 $207,686 $259,607 $311,760 $363,913 $800,000 $178,264 $237,686 $297,107 $356,760 $416,413 $900,000 $200,764 $267,686 $334,607 $401,760 $468,913 $1,000,000 $223,264 $297,686 $372,107 $446,760 $521,413 $1,100,000 $245,764 $327,686 $409,607 $491,760 $573,913 $1,200,000 $268,264 $357,686 $447,107 $536,760 $626,413 $1,300,000 $290,764 $387,686 $484,607 $581,760 $678,913 $1,400,000 $313,264 $417,686 $522,107 $626,760 $731,413 $1,500,000 $335,764 $447,686 $559,607 $671,760 $783,913 42 ANNUAL BENEFIT FOR OFFICERS ELIGIBLE FOR MAKE-WHOLE PLUS TARGET BENEFIT Final Years of Credited Service Average Compensation 15 20 25 30 35 $ 200,000 $ 72,000 $ 96,000 $120,000 $120,000 $120,000 250,000 90,000 120,000 150,000 150,000 150,000 300,000 108,000 144,000 180,000 180,000 180,000 350,000 126,000 168,000 210,000 210,000 210,000 400,000 144,000 192,000 240,000 240,000 240,000 450,000 162,000 216,000 270,000 270,000 270,000 500,000 180,000 240,000 300,000 300,000 300,000 600,000 216,000 288,000 360,000 360,000 360,000 700,000 252,000 336,000 420,000 420,000 420,000 800,000 288,000 384,000 480,000 480,000 480,000 900,000 324,000 432,000 540,000 540,000 540,000 1,000,000 360,000 480,000 600,000 600,000 600,000 1,100,000 396,000 528,000 660,000 660,000 660,000 1,200,000 432,000 576,000 720,000 720,000 720,000 1,300,000 468,000 624,000 780,000 780,000 780,000 1,400,000 504,000 672,000 840,000 840,000 840,000 1,500,000 540,000 720,000 900,000 900,000 900,000 The benefits presented in the tables above are based on a straight life annuity beginning at age 65 and do not take into account any reduction for joint and survivorship annuity payments. Final average compensation for purposes of calculating the target benefit is the highest average annual compensation of the participant during any 36 consecutive months compensation was earned. Final average compensation for purposes of calculating the make-whole benefit is the highest average annual compensation of the participant during any 60 consecutive months compensation was earned. Compensation for these benefits includes the annual salary and bonus shown in the Summary Compensation Table and, for the make-whole benefit for officers hired before November 2001, and for the target benefit for officers who were hired before November 2001 and eligible for the target benefit prior to October 2003, an amount that represents the annual value of long term incentive compensation for 2002 and 2003. Compensation for purposes of these benefits does not include employer matching contributions under the 401k Plan. In the event that an officer's employment terminates because of disability, the retirement benefits shown above would be offset by the amount of any disability benefits payable to the recipient that are attributable to contributions made by Northeast Utilities and its subsidiaries under long term disability plans and policies. Mr. Morris is not eligible to participate in the Supplemental Plan, but he does participate in the Retirement Plan. The amount of his annual compensation covered by the Retirement Plan was limited by the IRS to $200,000 for 2003. The compensation covered by the Supplemental Plan in 2003 for Mr. Forsgren, Mr. Shivery, Mrs. Grise, Mr. Butler, Mr. Olivier, Mr. Long, and Mrs Kuhlman was $1,871,931, $906,616, $1,169,601, $508,140, $634,627, $348,005, and $328,233, respectively. As of December 31, 2003, the executive officers named in the Summary Compensation Table had approximately the following years of credited service for purposes of the Supplemental Plan: Mr. Forsgren - 7, Mr. Shivery - 1, Mrs. Grise - 23, Mr. Butler - 7, Mr. Olivier - 5, Mr. Long - 28, and Mrs. Kuhlman - 23. Mr. Morris had 25 years of service for purpose of his special retirement benefit. In addition, Mr. Forsgren had 15 years of service for purposes of his supplemental pension benefit and would have 28 years of service for such purpose if he were to retire at age 65. f. Their rights to indemnity: No disclosures were made in any system company's most recent proxy statement or annual report on Form 10-K with respect to the rights to indemnity of Trustees, Directors or executive officers. 43 ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS 1. There were no expenditures, disbursements or payments made during 2003 in money, goods or services, directly or indirectly to or for the account of any political party, candidate for public office or holder of such office, or any committee or agent therefore; and 2. There were no expenditures, disbursements or payments made during 2003 to citizens groups or public relations counsel. ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS PART I: Intercompany Service Contracts
Serving Receiving Contract Transaction Company Company Compensation Date ----------- ------- ------- ------------ ---- (Millions of Dollars) Plant operations and maintenance services NGS NGC $22.8 2000 Plant operations and maintenance services NGS HWP $12.0 2000 Plant operations and maintenance services NGS SESI $ 5.0 2002 Engineering and construction services NGS Greenport $ 2.6 2003 Electrical maintenance and construction services Boulos PSNH $ 3.3 2003 Electrical maintenance and construction services Boulos CL&P $ 1.4 2003
These contracts were all in place at December 31, 2003. PART II: See Item 6, Part III(c). PART III: None to be reported. 44 ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES PART I: (a) Identification of Company 1. Northeast Generation Company (NGC) 2. Location: 107 Selden Street Berlin, CT 06037 3. Business Address: Same 4. Description: NGC owns and operates a portfolio of 1,293.1 MW of generating assets in New England. The table below lists these generating assets:
Capacity Asset Location Type (MW) ----- -------- ---- -------- Northfield Mountain Erving, MA Pumped Storage 1,080.0 Cabot Montague, MA Conventional Hydro 58.8 Turners Falls Montague, MA Conventional Hydro 6.4 Falls Village Falls Village, CT Conventional Hydro 11.0 Bulls Bridge New Milford, CT Conventional Hydro 8.4 Rocky River New Milford, CT Conventional Hydro/ Pumped Storage 29.0 Shepaug Southbury, CT Conventional Hydro 42.6 Stevenson Monroe, CT Conventional Hydro 28.9 Robertsville Colebrook, CT Conventional Hydro 0.6 Bantam Litchfield, CT Conventional Hydro 0.3 Scotland Windham, CT Conventional Hydro 2.2 Tunnel Preston, CT Conventional Hydro 2.1 Taftville Norwich, CT Conventional Hydro 2.0 Tunnel ICU Preston, CT Internal Combustion Unit 20.8 ------- Total 1,293.1 =======
5. System Company that Holds Interest: Northeast Generation Company, a Connecticut corporation, is a wholly-owned subsidiary of NU Enterprises, Inc., the holding company for Northeast Utilities competitive businesses. 6. EWG or FUCO: EWG 45 (b) Capital Investment in Company by NU, Direct or Indirect 1. Type: Capital contribution 2. Amount: $448.2 million 3. Debt: None 4. Other financial obligations with recourse to NU or another system company: None 5. Guarantees by NU: None Transfer of assets to an affiliated EWG or FUCO: Market value: None Book value: None Sale price: None (c) State the ratio of debt to common equity and earnings as of 12/31/03: Ratio of debt to common equity as of 12/31/03: 0.887 Ratio of debt to earnings as of 12/31/03: 10.102 (d) Service, Sales or Construction Contracts: NGC has a Management and Operation Agreement, dated February 1, 2000, as amended March 1, 2000, with Northeast Generation Services Company (NGS), an affiliate of NGC, to manage and operate the NGC generating assets. This agreement is in effect until March 15, 2006. The scope of services that NGS renders to NGC under this agreement includes management, operations, maintenance, administration, labor, consumables, water, supervision, and other goods and services necessary for the safe, efficient and reliable management, operation and maintenance of the NGC assets on a daily basis. During 2003, NGC paid NGS $22.8 million under this contract. NGC has a Service Contract with Northeast Utilities Service Company (NUSCO), an affiliate of NGC, dated January 4, 1999. This agreement has been extended through the year 2003 in a series of one-year extensions. Under this contract, NUSCO agrees to provide NGC with services such as corporate and secretarial, financial planning, accounting, taxes, insurance, budgets, data processing, purchasing, and other administrative services. During 2003, NGC paid NUSCO $1.5 million under this contract. 46 PART II. An organizational chart showing the relationship of the exempt wholesale generator to other NU system companies is provided as Exhibit G. Required financial data is provided as Exhibit H. PART III. (a) NU's aggregate investment in EWGs and FUCOs, respectively, as of 12/31/03: EWGs: $448.2 million FUCOS: $0.0 million (b) Ratio of aggregate investment to aggregate retained earnings of NU's public-utility subsidiary companies as of 12/31/03: 0.55 47 ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS
Page ---- Financial Statements filed pursuant to the Public Utility Holding Company Act of 1935 Independent Auditors' Consent F-1 Signature F-5 Financial Statements as of and for the year ended December 31, 2003 Northeast Utilities and Subsidiaries: Consolidating Balance Sheet F-7 --F-10 Consolidating Statement of Income F-11--F-12 Consolidating Statement of Retained Earnings F-13--F-14 Consolidating Statement of Capital Surplus, Paid In F-13--F-14 Consolidating Statement of Cash Flows F-15--F-16 The Connecticut Light and Power Company and Subsidiaries: Consolidating Balance Sheet F-17--F-18 Consolidating Statement of Income F-19 Consolidating Statement of Retained Earnings F-20 Consolidating Statement of Capital Surplus, Paid In F-20 Consolidating Statement of Cash Flows F-21 Public Service Company of New Hampshire and Subsidiaries: Consolidating Balance Sheet F-23--F-24 Consolidating Statement of Income F-25 Consolidating Statement of Retained Earnings F-26 Consolidating Statement of Capital Surplus, Paid In F-26 Consolidating Statement of Cash Flows F-27 Western Massachusetts Electric Company and Subsidiary: Consolidating Balance Sheet F-29--F-30 Consolidating Statement of Income F-31 Consolidating Statement of Retained Earnings F-32 Consolidating Statement of Capital Surplus, Paid In F-32 Consolidating Statement of Cash Flows F-33 Holyoke Water Power Company and Subsidiary: Consolidating Balance Sheet F-35--F-36 Consolidating Statement of Income F-37 Consolidating Statement of Retained Earnings F-38 Consolidating Statement of Capital Surplus, Paid In F-38 Consolidating Statement of Cash Flows F-39
48
Page ---- Yankee Energy System, Inc. and Subsidiaries: Consolidating Balance Sheet F-41--F-44 Consolidating Statement of Income F-45--F-46 Consolidating Statement of Retained Earnings F-47--F-48 Consolidating Statement of Capital Surplus, Paid In F-47--F-48 Consolidating Statement of Cash Flows F-49--F-50 NU Enterprises, Inc. and Subsidiaries: Consolidating Balance Sheet F-51--F-54 Consolidating Statement of Income F-55--F-56 Consolidating Statement of Retained Earnings F-57--F-58 Consolidating Statement of Capital Surplus, Paid In F-57--F-58 Consolidating Statement of Cash Flows F-59--F-60 Northeast Generation Services Company and Subsidiaries: Consolidating Balance Sheet F-61--F-62 Consolidating Statement of Income F-63 Consolidating Statement of Retained Earnings F-64 Consolidating Statement of Capital Surplus, Paid In F-64 Consolidating Statement of Cash Flows F-65 Select Energy, Inc. and Subsidiary: Consolidating Balance Sheet F-67--F-68 Consolidating Statement of Income F-69 Consolidating Statement of Retained Earnings F-70 Consolidating Statement of Capital Surplus, Paid In F-70 Consolidating Statement of Cash Flows F-71 Select Energy Services, Inc.: Consolidating Balance Sheet F-73--F-76 Consolidating Statement of Income F-77--F-78 Consolidating Statement of Retained Earnings F-79--F-80 Consolidating Statement of Capital Surplus, Paid In F-79--F-80 Consolidating Statement of Cash Flows F-81--F-82 Notes to Financial Statements F-83 Exhibits E-1--E-30
49 INDEPENDENT AUDITORS' CONSENT We consent to the incorporation by reference in this Northeast Utilities (the "Company") Form U5S Annual Report to the Securities and Exchange Commission, filed pursuant to the Public Utility Holding Company Act of 1935, for the year ended December 31, 2003, of our report dated February 23, 2004 relating to the consolidated financial statements of the Company as of December 31, 2003 and 2002 and for each of the three years in the period ended December 31, 2003 incorporated by reference in the Annual Report on Form 10-K of Northeast Utilities for the year ended December 31, 2003 (which report expresses an unqualified opinion and includes an explanatory paragraph relating to the Company's adoption of Statement of Financial Accounting Standards (SFAS) No. 133, Accounting for Derivative Instruments and Hedging Activities, as amended, effective January 1, 2001, and its adoption in 2003 of Emerging Issues Task Force Issue 03-11, Reporting Realized Gains and Losses on Derivative Instruments that are Subject to Financial Accounting Standards Board (FASB) Statement No. 133 and not "Held for Trading Purposes" as Defined in Issue No. 02-3; and its adoption of FASB Interpretation No. 46, Consolidation of Variable Interest Entities, effective July 1, 2003, and SFAS No. 142, Goodwill and Other Intangible Assets, as of January 1, 2002, respectively). /s/ DELOITTE & TOUCHE LLP DELOITTE & T0UCHE LLP April 29, 2004 Hartford, CT F-1 INDEPENDENT AUDITORS' CONSENT We consent to the incorporation by reference in this Northeast Utilities Form U5S Annual Report to the Securities and Exchange Commission, filed pursuant to the Public Utility Holding Company Act of 1935, for the year ended December 31, 2003, of our report dated February 23, 2004 relating to the consolidated financial statements of The Connecticut Light and Power Company as of December 31, 2003 and 2002 and each of the three years in the period ended December 31, 2003 incorporated by reference in the Annual Report on Form 10-K of The Connecticut Light and Power Company for the year ended December 31, 2003. /s/ DELOITTE & TOUCHE LLP DELOITTE & TOUCHE LLP April 29, 2004 Hartford, CT F-2 INDEPENDENT AUDITORS' CONSENT We consent to the incorporation by reference in this Northeast Utilities Form U5S Annual Report to the Securities and Exchange Commission, filed pursuant to the Public Utility Holding Company Act of 1935, for the year ended December 31, 2003, of our report dated February 23, 2004 relating to the consolidated financial statements of Public Service Company of New Hampshire as of December 31, 2003 and 2002 and for each of the three years in the period ended December 31, 2003 incorporated by reference in the Annual Report on Form 10-K of Public Service Company of New Hampshire for the year ended December 31, 2003 (which report expresses an unqualified opinion and includes an explanatory paragraph relating to the Company's adoption in 2003 of Emerging Issues Task Force Issue 03-11, Reporting Realized Gains and Losses on Derivative Instruments that are Subject to Financial Accounting Standards Board Statement No. 133 and not "Held for Trading Purposes" as defined in issue No. 02-3). /s/ DELOITTE & TOUCHE LLP DELOITTE & TOUCHE LLP April 29, 2004 Hartford, CT F-3 INDEPENDENT AUDITORS' CONSENT We consent to the incorporation by reference in this Northeast Utilities Form U5S Annual Report to the Securities and Exchange Commission, filed pursuant to the Public Utility Holding Company Act of 1935, for the year ended December 31, 2003, of our report dated February 23, 2004 relating to the consolidated financial statements of Western Massachusetts Electric Company as of and for the years ended December 31, 2003 and 2002 incorporated by reference in the Annual Report on Form 10-K of Western Massachusetts Electric Company for the year ended December 31, 2003. /s/ DELOITTE & TOUCHE LLP DELOITTE & TOUCHE LLP April 29, 2004 Hartford, CT F-4 SIGNATURE Northeast Utilities, a registered holding company, has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized, pursuant to the requirements of the Public Utility Holding Company Act of 1935. NORTHEAST UTILITIES By: /s/ John P. Stack ----------------------------------------------------- John P. Stack Vice President - Accounting and Controller April 29, 2004 F-5 THIS PAGE INTENTIONALLY LEFT BLANK F-6 NORTHEAST UTILITIES AND SUBSIDIARIES Consolidating Balance Sheet (a) Assets December 31, 2003 (Thousands of Dollars)
The Western Connecticut Public Service Massachusetts Light and Company of Electric North Northeast Power Company New Hampshire Company Atlantic Utilities (consolidated) (consolidated) (consolidated) Energy (parent) (b) (b) (b) Corporation ------------- ------------- ------------- ------------- ------------- ASSETS Current Assets: Cash and cash equivalents $ - $ 5,814 $ 2,737 $ 1 $ - Unrestricted cash from counterparties - - - - - Restricted cash - LMP costs - 93,630 - - - Special deposits - - 30,104 - - Investments in securitizable assets - 166,465 - - - Receivables, net 3,116 60,759 67,121 40,103 - Accounts receivable from affiliated companies 1,973 73,986 11,291 20 - Unbilled revenues - 6,961 39,220 10,299 - Taxes receivable 2,314 - - - - Notes receivable from affiliated companies 259,600 - - - 5,400 Fuel, materials and supplies, at average cost - 31,583 54,533 1,584 - Derivative assets - 115,370 1,510 - - Prepayments and other 313 12,521 9,945 1,139 121 ------------- ------------- ------------- ------------- ------------- 267,316 567,089 216,461 53,146 5,521 ------------- ------------- ------------- ------------- ------------- Property, Plant and Equipment: Electric utility - 3,355,794 1,517,513 612,450 - Gas utility - - - - - Competitive energy - - - - - Other - - 5,707 - - ------------- ------------- ------------- ------------- ------------- - 3,355,794 1,523,220 612,450 - Less: Accumulated depreciation - 1,018,173 635,029 177,803 - ------------- ------------- ------------- ------------- ------------- - 2,337,621 888,191 434,647 - Construction work in progress - 224,277 37,401 13,124 - ------------- ------------- ------------- ------------- ------------- - 2,561,898 925,592 447,771 - ------------- ------------- ------------- ------------- ------------- Deferred Debits and Other Assets: Regulatory assets - 1,673,010 969,434 268,180 - Accumulated deferred income taxes - - - - - Goodwill - - - - - Purchased intangible assets, net - - - - - Prepaid pension - 305,320 - 75,386 - Investments in subsidiary companies, at equity 2,544,819 - - - - Other 14,565 99,577 60,324 19,081 1,462 ------------- ------------- ------------- ------------- ------------- 2,559,384 2,077,907 1,029,758 362,647 1,462 ------------- ------------- ------------- ------------- ------------- Total Assets $ 2,826,700 $ 5,206,894 $ 2,171,811 $ 863,564 $ 6,983 ============= ============= ============= ============= ============= Holyoke Water Power Northeast Company Utilities (consolidated) Service (b) Company -------------- ------------- ASSETS Current Assets: Cash and cash equivalents $ 81 $ 475 Unrestricted cash from counterparties - - Restricted cash - LMP costs - - Special deposits - - Investments in securitizable assets - - Receivables, net 17 37,679 Accounts receivable from affiliated companies 4,049 50,401 Unbilled revenues - - Taxes receivable 263 - Notes receivable from affiliated companies - 278,075 Fuel, materials and supplies, at average cost 7,788 - Derivative assets - - Prepayments and other 221 5,129 ------------- ------------- 12,419 371,759 ------------- ------------- Property, Plant and Equipment: Electric utility - - Gas utility - - Competitive energy 36,751 - Other - 111,466 ------------- ----------- 36,751 111,466 Less: Accumulated depreciation 34,122 76,195 ------------- ------------- 2,629 35,271 Construction work in progress 3,889 11,184 ------------- ------------- 6,518 46,455 ------------- ------------- Deferred Debits and Other Assets: Regulatory assets 672 - Accumulated deferred income taxes - 6,074 Goodwill - - Purchased intangible assets, net - - Prepaid pension 2,515 35,819 Investments in subsidiary companies, at equity - - Other 1,590 61,276 ------------- ------------- 4,777 103,169 ------------- ------------- Total Assets $ 23,714 $ 521,383 ============= =============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. (b) See supporting statements. F-7 NORTHEAST UTILITIES AND SUBSIDIARIES Consolidating Balance Sheet (a) Assets December 31, 2003 (Thousands of Dollars)
Northeast Yankee Energy Nuclear North Atlantic The The Rocky Systems, Inc. Energy Energy Service Quinnehtuk River Realty (consolidated) Company Corporation Company Company (b) ------------- ------------- ------------- ------------- ------------- ASSETS Current Assets: Cash and cash equivalents $ 103 $ 9,342 $ 54 $ 130 $ 1,378 Unrestricted cash from counterparties - - - - - Restricted cash - LMP costs - - - - - Special deposits - - - - - Investments in securitizable assets - - - - - Receivables, net 300 1,460 - - 56,799 Accounts receivable from affiliated companies 27 - - 759 8,135 Unbilled revenues - - - - 16,051 Taxes receivable 7 835 - - - Notes receivable from affiliated companies 32,900 - - - - Fuel, materials and supplies, at average cost - - - - 33,541 Derivative assets - - - - 2,962 Prepayments and other - 1,200 4 621 7,373 ------------- ------------- ------------- ------------- ------------- 33,337 12,837 58 1,510 126,239 ------------- ------------- ------------- ------------- ------------- Property, Plant and Equipment: Electric utility - - - - - Gas utility - - - - 743,991 Competitive energy - - - - - Other - - 1,639 103,174 - ------------- ------------- ------------- ------------- ------------- - - 1,639 103,174 743,991 Less: Accumulated depreciation - - 1,373 41,792 223,496 ------------- ------------- ------------- ------------- ------------- - - 266 61,382 520,495 Construction work in progress - - - 6,395 41,670 ------------- ------------- ------------- ------------- ------------- - - 266 67,777 562,165 ------------- ------------- ------------- ------------- ------------- Deferred Debits and Other Assets: Regulatory assets - - - - 54,765 Accumulated deferred income taxes 26,942 4,516 - - - Goodwill - - - - 287,591 Purchased intangible assets, net - - - - - Prepaid pension - - - - 41,204 Investments in subsidiary companies, at equity - - - - - Other 51 - 1,141 1,942 10,447 ------------- ------------- ------------- ------------- ------------- 26,993 4,516 1,141 1,942 394,007 ------------- ------------- ------------- ------------- ------------- Total Assets $ 60,330 $ 17,353 $ 1,465 $ 71,229 $ 1,082,411 ============= ============= ============= ============= ============= NU Enterprises, Inc. Charter Oak (consolidated) Energy, Inc. (b) Eliminations Consolidated ------------- ------------- ------------- ------------- ASSETS Current Assets: Cash and cash equivalents $ 161 $ 16,921 $ - $ 37,196 Unrestricted cash from counterparties - 46,496 - 46,496 Restricted cash - LMP costs - - - 93,630 Special deposits - 49,016 - 79,120 Investments in securitizable assets - - - 166,465 Receivables, net - 437,541 1 704,893 Accounts receivable from affiliated companies - 162,942 313,583 - Unbilled revenues - 53,349 - 125,881 Taxes receivable - 26,945 30,364 - Notes receivable from affiliated companies - - 575,975 - Fuel, materials and supplies, at average cost - 3,087 (21,960) 154,076 Derivative assets - 181,352 - 301,194 Prepayments and other - 49,243 24,048 63,780 ------------- ------------- ------------- ------------- 161 1,026,892 922,011 1,772,731 ------------- ------------- ------------- ------------- Property, Plant and Equipment: Electric utility 40 - 19,944 5,465,854 Gas utility - - - 743,990 Competitive energy - 849,202 - 885,953 Other - - - 221,986 ------------- ------------- ------------- ------------- 40 849,202 19,944 7,317,783 Less: Accumulated depreciation 40 47,810 11,572 2,244,263 ------------- ------------- ------------- ------------- - 801,392 8,372 5,073,520 Construction work in progress - 18,453 (1) 356,396 ------------- ------------- ------------- ------------- - 819,845 8,371 5,429,916 ------------- ------------- ------------- ------------- Deferred Debits and Other Assets: Regulatory assets - - (7,960) 2,974,022 Accumulated deferred income taxes - - 37,532 - Goodwill - 32,395 - 319,986 Purchased intangible assets, net - 22,956 - 22,956 Prepaid pension - 1,370 100,908 360,706 Investments in subsidiary companies, at equity - - 2,544,819 - Other - 208,845 51,734 428,567 ------------- ------------- ------------- ------------- - 265,566 2,727,033 4,106,237 ------------- ------------- ------------- ------------- Total Assets $ 161 $ 2,112,303 $ 3,657,415 $11,308,884 ============= ============= ============= =============
F-8 NORTHEAST UTILITIES AND SUBSIDIARIES Consolidating Balance Sheet (a) Capitalization and Liabilities December 31, 2003 (Thousands of Dollars)
The Western Connecticut Public Service Massachusetts Holyoke Light and Company of Electric North Water Power Northeast Power Company New Hampshire Company Atlantic Company Utilities (consolidated) (consolidated) (consolidated) Energy (consolidated) (parent) (b) (b) (b) Corporation (b) ------------- -------------- -------------- -------------- ------------ -------------- LIABILITIES AND CAPITALIZATION ------------------------------ Current Liabilities: Notes payable to banks $ 65,000 $ - $ 10,000 $ 10,000 $ - $ - Notes payable to affiliated companies - 91,125 48,900 31,400 - 1,400 Long-term debt - current portion 24,000 - - - - - Accounts payable 1,834 138,155 48,408 10,173 1,263 905 Accounts payable to affiliated companies 25 176,948 13,911 13,789 4 1,591 Accrued taxes - 65,587 2,543 765 537 186 Accrued interest 6,048 10,361 10,894 2,544 - - Derivative liabilities 3,576 54,566 1,414 - - - Other 346 49,674 27,740 9,785 - - ------------- -------------- -------------- -------------- ------------ -------------- 100,829 586,416 163,810 78,456 1,804 4,082 ------------- -------------- -------------- -------------- ------------ -------------- Rate Reduction Bonds - 1,124,779 472,222 132,960 - - ------------- -------------- -------------- -------------- ------------ -------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 4,261 609,068 338,930 216,547 - 1,496 Accumulated deferred investment tax credits - 90,885 2,096 3,326 - - Deferred contractual obligations - 318,043 64,237 86,937 - - Regulatory liabilities - 752,992 272,081 27,776 - 170 Accrued pension - - 44,766 - - - Other 1,375 79,935 26,124 8,357 - 3,611 ------------- -------------- -------------- -------------- ------------ -------------- 5,636 1,850,923 748,234 342,943 - 5,277 ------------- -------------- -------------- -------------- ------------ -------------- Capitalization: Long-Term Debt 456,115 830,149 407,285 157,202 - - ------------- -------------- -------------- -------------- ------------ -------------- Preferred Stock - Non-redeemable - 116,200 - - - - ------------- -------------- -------------- -------------- ------------ -------------- Long-Term Debt from NU Parent - - - - - 9,600 ------------- -------------- -------------- -------------- ------------ -------------- Common Stockholders' Equity: Common shares 751,992 60,352 - 10,866 - 2,400 Capital surplus, paid in 1,108,924 326,629 156,555 69,544 1,000 5,966 Deferred contribution plan - employee stock ownership plan (73,694) - - - - - Retained earnings/accumulated deficit 808,932 311,793 223,822 71,677 4,179 (3,611) Accumulated other comprehensive income/(loss) 25,991 (347) (117) (84) - - Treasury stock (358,025) - - - - - ------------- -------------- -------------- -------------- ------------ -------------- Common Stockholders' Equity 2,264,120 698,427 380,260 152,003 5,179 4,755 ------------- -------------- -------------- -------------- ------------ -------------- Total Capitalization 2,720,235 1,644,776 787,545 309,205 5,179 14,355 ------------- -------------- -------------- -------------- ------------ -------------- Total Liabilities and Capitalization $ 2,826,700 $ 5,206,894 $ 2,171,811 $ 863,564 $ 6,983 $ 23,714 ============= ============== ============== ============== ============ ==============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. (b) See supporting statements. F-9 NORTHEAST UTILITIES AND SUBSIDIARIES Consolidating Balance Sheet (a) Capitalization and Liabilities December 31, 2003 (Thousands of Dollars)
Northeast Northeast Utilities Nuclear North Atlantic The The Rocky Service Energy Energy Service Quinnehtuk River Realty Company Company Corporation Company Company ------------- ------------- ------------------ -------------- ---------------- LIABILITIES AND CAPITALIZATION ------------------------------ Current Liabilities: Notes payable to banks $ - $ - $ - $ - $ - Notes payable to affiliated companies 278,100 - - 4,000 16,500 Long-term debt - current portion - - - - 1,453 Accounts payable 39,993 134 1 - 170 Accounts payable to affiliated companies 78,995 - 1,439 6 2,067 Accrued taxes 306 - - 49 304 Accrued interest - - - - 40 Derivative liabilities - - - - - Other 25,950 2 - - 1,308 ------------- ------------- ------------------ -------------- ---------------- 423,344 136 1,440 4,055 21,842 ------------- ------------- ------------------ -------------- ---------------- Rate Reduction Bonds - - - - - ------------- ------------- ------------------ -------------- ---------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes - - - 35 1,563 Accumulated deferred investment tax credits - - - - - Deferred contractual obligations - - - - - Regulatory liabilities - - - - - Accrued pension - 48,423 7,719 - - Other 96,261 10,598 6,559 7 16,707 ------------- ------------- ------------------ -------------- ---------------- 96,261 59,021 14,278 42 18,270 ------------- ------------- ------------------ -------------- ---------------- Capitalization: Long-Term Debt - - - - 3,795 ------------- ------------- ------------------ -------------- ---------------- Preferred Stock - Non-redeemable - - - - - ------------- ------------- ------------------ -------------- ---------------- Long-Term Debt from NU Parent - - - - 5,000 ------------- ------------- ------------------ -------------- ---------------- Common Stockholders' Equity: Common shares - - 1 350 10 Capital surplus, paid in 1 322 9 155 20,000 Deferred contribution plan - employee stock ownership plan - - - - - Retained earnings/accumulated deficit - 851 1,625 (3,137) 2,312 Accumulated other comprehensive income/(loss) 1,777 - - - - Treasury stock - - - - - ------------- ------------- ------------------ -------------- ---------------- Common Stockholders' Equity 1,778 1,173 1,635 (2,632) 22,322 ------------- ------------- ------------------ -------------- ---------------- Total Capitalization 1,778 1,173 1,635 (2,632) 31,117 ------------- ------------- ------------------ -------------- ---------------- Total Liabilities and Capitalization $ 521,383 $ 60,330 $ 17,353 $ 1,465 $ 71,229 ============= ============= ================== ============== ================
NORTHEAST UTILITIES AND SUBSIDIARIES Consolidating Balance Sheet (a) Capitalization and Liabilities December 31, 2003 (Thousands of Dollars)
NU Yankee Energy Enterprises, Systems, Inc. Inc. (consolidated) Charter Oak (consolidated) (b) Energy, Inc. (b) Eliminations Consolidated -------------- ------------ -------------- ---------------- ---------------- LIABILITIES AND CAPITALIZATION ------------------------------ Current Liabilities: Notes payable to banks $ 20,000 $ - $ - $ - $ 105,000 Notes payable to affiliated companies 70,400 - 34,150 575,975 - Long-term debt - current portion 950 - 38,533 - 64,936 Accounts payable 30,863 - 496,886 1 768,783 Accounts payable to affiliated companies 5,249 - 19,558 313,583 - Accrued taxes 11,255 6 427 30,366 51,598 Accrued interest 3,361 - 8,405 - 41,653 Derivative liabilities 172 - 104,961 - 164,689 Other 26,066 - 110,219 1,514 249,576 -------------- ------------ -------------- ---------------- ---------------- 168,316 6 813,139 921,439 1,446,235 -------------- ------------ -------------- ---------------- ---------------- Rate Reduction Bonds - - - - 1,729,960 -------------- ------------ -------------- ---------------- ---------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 89,301 - 59,411 33,258 1,287,354 Accumulated deferred investment tax credits 6,344 - - - 102,652 Deferred contractual obligations - - - - 469,218 Regulatory liabilities 111,268 - - - 1,164,288 Accrued pension - - - 100,908 - Other 25,782 - 12,320 40,107 247,526 -------------- ------------ -------------- ---------------- ---------------- 232,695 - 71,731 174,273 3,271,038 -------------- ------------ -------------- ---------------- ---------------- Capitalization: Long-Term Debt 151,266 - 475,518 - 2,481,331 -------------- ------------ -------------- ---------------- ---------------- Preferred Stock - Non-redeemable - - - - 116,200 -------------- ------------ -------------- ---------------- ---------------- Long-Term Debt from NU Parent 5,000 - 178,299 197,899 - -------------- ------------ -------------- ---------------- ---------------- Common Stockholders' Equity: Common shares - - - 73,980 751,992 Capital surplus, paid in 484,616 64,344 679,897 1,809,037 1,108,924 Deferred contribution plan - employee stock ownership plan - - - - (73,694) Retained earnings/accumulated deficit 40,518 (64,189) (130,220) 455,620 808,932 Accumulated other comprehensive income/(loss) - - 23,939 25,167 25,991 Treasury stock - - - - (358,025) -------------- ------------ -------------- ---------------- ---------------- Common Stockholders' Equity 525,134 155 573,616 2,363,804 2,264,120 -------------- ------------ -------------- ---------------- ---------------- Total Capitalization 681,400 155 1,227,433 2,561,703 4,861,651 -------------- ------------ -------------- ---------------- ---------------- Total Liabilities and Capitalization $ 1,082,411 $ 161 $ 2,112,303 $ 3,657,415 $ 11,308,884 ============== ============ ============== ================ ================
F-10 NORTHEAST UTILITIES AND SUBSIDIARIES Consolidating Statement of Income (a) Year Ended December 31, 2003 (Thousands of Dollars)
The Western Connecticut Public Service Massachusetts Holyoke Light and Company of Electric North Water Power Northeast Power Company New Hampshire Company Atlantic Company Utilities (consolidated) (consolidated) (consolidated) Energy (consolidated) (parent) (b) (b) (b) Corporation (b) -------- --- --- --- ----------- --- Operating Revenues $ - $ 2,704,524 $ 888,186 $ 391,178 $ (1,134) $ 41,679 ------------- -------------- -------------- -------------- ------------- -------------- Operating Expenses: Operation- Fuel, purchased and net interchange power - 1,602,240 400,518 198,985 - 29,836 Other 7,696 380,039 142,550 59,020 (394) 7,771 Maintenance - 73,066 64,872 15,289 - 4,486 Depreciation - 104,513 43,322 14,104 1,584 613 Amortization - 98,670 37,861 41,695 - (1) Amortization of rate reduction bonds - 103,285 40,040 9,847 - - Taxes other than income taxes 24 142,339 33,407 11,844 (545) 1,049 ------------- -------------- -------------- -------------- ------------- -------------- Total operating expenses 7,720 2,504,152 762,570 350,784 645 43,754 ------------- -------------- -------------- -------------- ------------- -------------- Operating (Loss)/Income (7,720) 200,372 125,616 40,394 (1,779) (2,075) ------------- -------------- -------------- -------------- ------------- -------------- Interest Expense Interest on long-term debt 21,180 39,815 15,408 3,860 - (7) Interest on rate reduction bonds - 70,284 29,081 8,994 - - Other interest 1,006 508 727 965 6 206 ------------- -------------- -------------- -------------- ------------- -------------- Interest expense, net 22,186 110,607 45,216 13,819 6 199 ------------- -------------- -------------- -------------- ------------- -------------- Other Income/(Loss), Net Equity in earnings of subsidiaries 123,647 - - - - - Other, net 11,041 4,564 (5,003) 3,167 (628) 57 ------------- -------------- -------------- -------------- ------------- -------------- Other income/(loss), net 134,688 4,564 (5,003) 3,167 (628) 57 ------------- -------------- -------------- -------------- ------------- -------------- Income/(Loss) Before Income Tax (Benefit)/Expense 104,782 94,329 75,397 29,742 (2,413) (2,217) Income Tax (Benefit)/Expense (11,629) 25,421 29,773 13,530 (2,254) (751) ------------- -------------- -------------- -------------- ------------- -------------- Income/(Loss) before cumulative effect of accounting change, net of tax benefit $ 116,411 $ 68,908 $ 45,624 $ 16,212 $ (159) $ (1,466) Cumulative effect of accounting change, net of tax benefit - - - - - - ------------- -------------- -------------- -------------- ------------- -------------- Net Income/(Loss) $ 116,411 $ 68,908 $ 45,624 $ 16,212 $ (159) $ (1,466) ============= ============== ============== ============== ============= ==============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. (b) See supporting statements. F-11 NORTHEAST UTILITIES AND SUBSIDIARIES Consolidating Statement of Income (a) Year Ended December 31, 2003 (Thousands of Dollars)
Northeast Northeast Yankee Energy Utilities Nuclear North Atlantic The The Rocky System, Inc. Service Energy Energy Service Quinnehtuk River Realty (consolidated) Company Company Corporation Company Company (b) -------- -------- ----------- -------- -------- --- Operating Revenues $ 249,749 $ - $ - $ 204 $ 8,684 $ 361,486 ----------- ----------- -------------- ---------- ------------ -------------- Operating Expenses: Operation- Fuel, purchased and net interchange power - - - - - 216,335 Other 214,693 - (3,003) 26 1,062 61,483 Maintenance 5,213 - - - - 9,256 Depreciation 9,712 - - 55 2,695 22,779 Amortization - - - - - 702 Amortization of rate reduction bonds - - - - - - Taxes other than income taxes 9,682 - 511 107 1,416 25,072 ----------- ----------- -------------- ---------- ------------ -------------- Total operating expenses 239,300 - (2,492) 188 5,173 335,627 ----------- ----------- -------------- ---------- ------------ -------------- Operating (Loss)/Income 10,449 - 2,492 16 3,511 25,859 ----------- ----------- -------------- ---------- ------------ -------------- Interest Expense Interest on long-term debt - - - - 548 12,267 Interest on rate reduction bonds - - - - - - Other interest 50 - - 44 602 885 ----------- ----------- -------------- ---------- ------------ -------------- Interest expense, net 50 - - 44 1,150 13,152 ----------- ----------- -------------- ---------- ------------ -------------- Other Income/(Loss), Net Equity in earnings of subsidiaries - - - - - - Other, net (11,471) - 82 (26) 81 (6,348) ----------- ----------- -------------- ---------- ------------ -------------- Other income/(loss), net (11,471) - 82 (26) 81 (6,348) ----------- ----------- -------------- ---------- ------------ -------------- Income/(Loss) Before Income Tax (Benefit)/Expense (1,072) - 2,574 (54) 2,442 6,359 Income Tax (Benefit)/Expense (1,072) - 953 (20) 998 2,043 ----------- ----------- -------------- ---------- ------------ -------------- Income/(Loss) before cumulative effect of accounting change, net of tax benefit $ - $ - $ 1,621 $ (34) $ 1,444 $ 4,316 Cumulative effect of accounting change, net of tax benefit - - - - - (4,741) ----------- ----------- -------------- ---------- ------------ -------------- Net Income/(Loss) $ - $ - $ 1,621 $ (34) $ 1,444 $ (425) =========== =========== ============== ========== ============ ==============
NORTHEAST UTILITIES AND SUBSIDIARIES Consolidating Statement of Income (a) Year Ended December 31, 2003 (Thousands of Dollars)
NU Enterprises, Inc. Charter Oak consolidated) Energy, Inc. (b) Eliminations Consolidated ------------ --- ------------ ------------ Operating Revenues $ - $ 2,586,355 $ 1,161,756 $ 6,069,156 -------------- -------------- ------------ ------------ Operating Expenses: Operation- Fuel, purchased and net interchange power - 2,166,788 884,287 3,730,416 Other (6) 266,568 237,070 900,437 Maintenance - 69,606 9,757 232,030 Depreciation - 15,320 10,309 204,388 Amortization - 3,749 - 182,675 Amortization of rate reduction bonds - - - 153,172 Taxes other than income taxes - 17,448 9,682 232,672 -------------- -------------- ------------ ------------ Total operating expenses (6) 2,539,479 1,151,105 5,635,790 -------------- -------------- ------------ ------------ Operating (Loss)/Income 6 46,876 10,651 433,366 -------------- -------------- ------------ ------------ Interest Expense Interest on long-term debt - 33,187 - 126,259 Interest on rate reduction bonds - - - 108,359 Other interest - 16,180 9,438 11,740 -------------- -------------- ------------ ------------ Interest expense, net - 49,367 9,438 246,358 -------------- -------------- ------------ ------------ Other Income/(Loss), Net Equity in earnings of subsidiaries - - 123,647 - Other, net - 2,347 (1,700) (435) -------------- -------------- ------------ ------------ Other income/(loss), net - 2,347 121,947 (435) -------------- -------------- ------------ ------------ Income/(Loss) Before Income Tax (Benefit)/Expense 6 (144) 123,160 186,573 Income Tax (Benefit)/Expense 120 2,631 (118) 59,862 -------------- -------------- ------------ ------------ Income/(Loss) before cumulative effect of accounting change, net of tax benefit $ (114) $ (2,775) $ 123,278 $ 126,711 Cumulative effect of accounting change, net of tax benefit - - - (4,741) -------------- -------------- ------------ ------------ Net Income/(Loss) $ (114) $ (2,775) $ 123,278 $ 121,970 ============== ============== ============ ============
F-12 NORTHEAST UTILITIES AND SUBSIDIARIES Consolidating Statement of Retained Earnings (a) Year Ended December 31, 2003 (Thousands of Dollars)
The Western Connecticut Public Service Massachusetts Light and Company of Electric Northeast Power Company New Hampshire Company North Atlantic Utilities (consolidated) (consolidated) (consolidated) Energy (parent) (b) (b) (b) Corporation ------------ -------------- -------------- -------------- --------------- Balance at beginning of period $ 765,611 $ 308,554 $ 194,998 $ 77,476 $ 20,338 Additions: Net income/(loss) 116,411 68,908 45,624 16,212 (159) ------------ -------------- -------------- -------------- --------------- 882,022 377,462 240,622 93,688 20,179 ------------ -------------- -------------- -------------- --------------- Deductions: Dividends declared: Preferred stock (at required annual rates): The Connecticut Light and Power Company - 5,559 - - - Common shares: $9.96 per share - 60,110 - - - $55,813.98 per share - - 16,800 - - $50.64 per share - - - 22,011 - $.575 per share 73,090 - - - - $2,666,666.67 per share - - - - 16,000 ------------ -------------- -------------- -------------- --------------- 73,090 65,669 16,800 22,011 16,000 ------------ -------------- -------------- -------------- --------------- Balance at end of period $ 808,932 $ 311,793 $ 223,822 $ 71,677 $ 4,179 ============ ============== ============== ============== =============== Holyoke Water Power Northeast Company Nuclear (consolidated) Energy (b) Company -------------- ----------- Balance at beginning of period $ (2,145) $ 851 Additions: Net income/(loss) (1,466) - -------------- ----------- (3,611) 851 -------------- ----------- Deductions: Dividends declared: Preferred stock (at required annual rates): The Connecticut Light and Power Company - - Common shares: $9.96 per share - - $55,813.98 per share - - $50.64 per share - - $.575 per share - - $2,666,666.67 per share - - -------------- ----------- - - -------------- ----------- Balance at end of period $ (3,611) $ 851 ============== ===========
NORTHEAST UTILITIES AND SUBSIDIARIES Consolidating Statement of Capital Surplus, Paid In (a) Year Ended December 31, 2003 (Thousands of Dollars)
The Western Connecticut Public Service Massachusetts Light and Company of Electric Northeast Power Company New Hampshire Company North Atlantic Utilities (consolidated) (consolidated) (consolidated) Energy (parent) (b) (b) (b) Corporation ------------ -------------- -------------- -------------- --------------- Balance at beginning of period $1,108,338 $ 327,299 $ 126,937 $ 69,712 $ 1,000 Repurchase of common shares - - - - - Capital contribution from Northeast Utilities - - 30,000 - - Issuance of common shares 8,541 - - - - Capital stock expenses, net 185 186 - - - Issuance of restricted shares, net (4,110) - - - - Allocation of benefits - ESOP (4,030) (856) (382) (168) - ------------ -------------- -------------- -------------- --------------- Balance at end of period $1,108,924 $ 326,629 $ 156,555 $ 69,544 $ 1,000 ============ ============== ============== ============== =============== Holyoke Water Power Northeast Company Utilities (consolidated) Service (b) Company -------------- ----------- Balance at beginning of period $ 5,969 $ 1 Repurchase of common shares - - Capital contribution from Northeast Utilities - - Issuance of common shares - - Capital stock expenses, net - - Issuance of restricted shares, net - - Allocation of benefits - ESOP (3) - -------------- ----------- Balance at end of period $ 5,966 $ 1 ============== ===========
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. (b) See supporting statements. F-13 NORTHEAST UTILITIES AND SUBSIDIARIES Consolidating Statement of Retained Earnings (a) Year Ended December 31, 2003 (Thousands of Dollars)
Yankee Energy North Atlantic The The Rocky System, Inc. Energy Service Quinnehtuk River Realty (consolidated) Charter Oak Corporation Company Company (b) Energy, Inc. -------------- ------------ ------------- -------------- ------------ Balance at beginning of period $ 4 $ (3,103) $ 868 $ 40,943 $ (64,075) Additions: Net income/(loss) 1,621 (34) 1,444 (425) (114) -------------- ------------ ------------- -------------- ------------ 1,625 (3,137) 2,312 40,518 (64,189) -------------- ------------ ------------- -------------- ------------ Deductions: Dividends declared: Preferred stock (at required annual rates): The Connecticut Light and Power Company - - - - - Common shares: $9.96 per share - - - - - $55,813.98 per share - - - - - $50.64 per share - - - - - $.575 per share - - - - - $2,666,666.67 per share - - - - - -------------- ------------ ------------- -------------- ------------ - - - - - -------------- ------------ ------------- -------------- ------------ Balance at end of period $ 1,625 $ (3,137) $ 2,312 $ 40,518 $ (64,189) ============== ============ ============= ============== ============ NU Enterprises, Inc. (consolidated) (b) Eliminations Consolidated -------------- ------------ ------------ Balance at beginning of period $ (127,445) $ 447,263 $ 765,611 Additions: Net income/(loss) (2,775) 123,278 121,970 -------------- ------------ ------------ (130,220) 570,541 887,581 -------------- ------------ ------------ Deductions: Dividends declared: Preferred stock (at required annual rates): The Connecticut Light and Power Company - - 5,559 Common shares: $9.96 per share - 60,110 - $55,813.98 per share - 16,800 - $50.64 per share - 22,011 - $.575 per share - - 73,090 $2,666,666.67 per share - 16,000 - -------------- ------------ ------------ - 114,921 78,649 -------------- ------------ ------------ Balance at end of period $ (130,220) $ 455,620 $ 808,932 ============== ============ ============
NORTHEAST UTILITIES AND SUBSIDIARIES Consolidating Statement of Capital Surplus, Paid In (a) Year Ended December 31, 2003 (Thousands of Dollars)
Northeast Yankee Energy Nuclear North Atlantic The The Rocky System, Inc. Energy Energy Service Quinnehtuk River Realty (consolidated) Company Corporation Company Company (b) ----------- -------------- ---------- ------------ -------------- Balance at beginning of period $ 15,350 $ 9 $ 155 $ - $ 484,769 Repurchase of common shares (15,028) - - - - Capital contribution from Northeast Utilities - - - 20,000 - Issuance of common shares - - - - - Capital stock expenses, net - - - - - Issuance of restricted shares, net - - - - - Allocation of benefits - ESOP - - - - (153) ----------- ------------- --------- ------------ -------------- Balance at end of period $ 322 $ 9 $ 155 $ 20,000 $ 484,616 =========== ============= ========= ============ ============== NU Enterprises, Inc. Charter Oak (consolidated) Energy, Inc. (b) Eliminations Consolidated ------------ -------------- ------------ ------------ Balance at beginning of period $ 64,344 $ 662,976 $1,758,522 $1,108,338 Repurchase of common shares - - (15,028) - Capital contribution from Northeast Utilities - 17,200 67,200 - Issuance of common shares - - - 8,541 Capital stock expenses, net - - 186 185 Issuance of restricted shares, net - - - (4,110) Allocation of benefits - ESOP - (279) (1,843) (4,030) ------------ -------------- ------------ ------------ Balance at end of period $ 64,344 $ 679,897 $1,809,037 $1,108,924 ============ ============== ============ ============
F-14 NORTHEAST UTILITIES AND SUBSIDIARIES Consolidating Statement of Cash Flows (a) Year Ended December 31, 2003 (Thousands of Dollars)
The Western Connecticut Public Service Massachusetts Northeast Light and Company of Electric Utilities Power Company New Hampshire Company (parent) (consolidated) (consolidated) (consolidated) (b) (b) (b) ------------- -------------- -------------- -------------- Operating Activities: Net income/(loss) $ 116,411 $ 68,908 $ 45,624 $ 16,212 Adjustments to reconcile to net cash provided by/(used in) operating activities: Depreciation - 104,513 43,322 14,104 Deferred income taxes and investment tax credits, net (411) (118,425) (6,670) (14,315) Amortization of regulatory assets - 98,670 37,861 41,695 Amortization of rate reduction bonds - 103,285 40,040 9,847 Amortization of recoverable energy costs - 19,191 23,388 598 Prepaid pension - (29,147) - (7,870) Cumulative effect of accounting change - - - - Regulatory overrecoveries/(refunds) - 275,015 10,778 6,265 Net other sources/(uses) of cash 6,794 (97,544) (29,046) (15,683) Changes in current assets and liabilities: Restricted cash - LMP costs - (93,630) - - Unrestricted cash from counterparties - - - - Receivables and unbilled revenues, net (1,918) 3,156 (7,757) 7,079 Fuel, materials and supplies - 796 (5,351) 237 Investments in securitizable assets - 12,443 - - Other current assets (excludes cash) (6,130) 6,886 87 330 Accounts payable (716) 22,309 3,723 14 Accrued taxes (2,460) 31,237 (62,774) (3,569) Other current liabilities 17,340 1,385 (10,981) 2,266 ------------- -------------- -------------- -------------- Net cash flows provided by/(used in) operating activities 128,910 409,048 82,244 57,210 ------------- -------------- -------------- -------------- Investing Activities: Investments in plant: Electric, gas and other utility plant - (314,628) (105,626) (30,386) Competitive energy assets - - - - ------------- -------------- -------------- -------------- Cash flows used for investments in plant - (314,628) (105,626) (30,386) NU system Money Pool borrowing/(lending) 29,500 93,025 71,900 (54,500) Buyout/buydown of IPP contracts - - (20,437) - CVEC acquisition special deposit - - (30,104) - Other investment activities (218,135) 5,448 15,066 1,377 ------------- -------------- -------------- -------------- Net cash flows (used in)/provided by investing activities (188,635) (216,155) (69,201) (83,509) ------------- -------------- -------------- -------------- Financing Activities: Issuance of common shares 13,654 - - - Repurchase of common shares (20,537) - - - Issuance of long-term debt 150,000 - - 55,000 Retirement of rate reduction bonds - (120,949) (38,619) (9,782) Increase in short-term debt 16,000 - 10,000 3,000 Reacquisitions and retirements of long-term debt (23,000) - - - Advance from parent - - - - Capital contribution from Northeast Utilities - - 30,000 - Cash dividends on preferred stock - (5,559) - - Cash dividends on common shares (73,090) (60,110) (16,800) (22,011) Other financing activities (3,927) (620) (206) (30) ------------- -------------- -------------- -------------- Net cash flows provided by/(used in) financing activities 59,100 (187,238) (15,625) 26,177 ------------- -------------- -------------- -------------- Net (decrease)/increase in cash for the year (625) 5,655 (2,582) (122) Cash and cash equivalents - beginning of year 625 159 5,319 123 ------------- -------------- -------------- -------------- Cash and cash equivalents - end of year $ - $ 5,814 $ 2,737 $ 1 ============= ============== ============== ============== Supplemental Cash Flow Information: Cash paid/(refunded) during the year for: Interest, net of amounts capitalized $ 21,496 $ 112,258 $ 45,639 $ 13,560 ============= ============== ============== ============== Income taxes $ (16,818) $ 105,167 $ 97,165 $ 31,807 ============= ============== ============== ==============
NORTHEAST UTILITIES AND SUBSIDIARIES Consolidating Statement of Cash Flows (a) Year Ended December 31, 2003 (Thousands of Dollars)
North Holyoke Atlantic Water Power Energy Company Corporation (consolidated) (b) ------------- -------------- Operating Activities: Net income/(loss) $ (159) $ (1,466) Adjustments to reconcile to net cash provided by/(used in) operating activities: Depreciation 1,584 614 Deferred income taxes and investment tax credits, net - (189) Amortization of regulatory assets - (1) Amortization of rate reduction bonds - - Amortization of recoverable energy costs - - Prepaid pension - - Cumulative effect of accounting change - - Regulatory overrecoveries/(refunds) (167) (869) Net other sources/(uses) of cash (1,566) 1,053 Changes in current assets and liabilities: Restricted cash - LMP costs - - Unrestricted cash from counterparties - - Receivables and unbilled revenues, net 36 (535) Fuel, materials and supplies - (427) Investments in securitizable assets - - Other current assets (excludes cash) (121) 565 Accounts payable (20,278) (862) Accrued taxes (10,313) 24 Other current liabilities (6) (34) ------------- -------------- Net cash flows provided by/(used in) operating activities (30,990) (2,127) ------------- -------------- Investing Activities: Investments in plant: Electric, gas and other utility plant - - Competitive energy assets - (1,819) ------------- -------------- Cash flows used for investments in plant - (1,819) NU system Money Pool borrowing/(lending) 37,000 3,500 Buyout/buydown of IPP contracts - - CVEC acquisition special deposit - - Other investment activities 9,990 447 ------------- -------------- Net cash flows (used in)/provided by investing activities 46,990 2,128 ------------- -------------- Financing Activities: Issuance of common shares - - Repurchase of common shares - - Issuance of long-term debt - - Retirement of rate reduction bonds - - Increase in short-term debt - - Reacquisitions and retirements of long-term debt - - Advance from parent - - Capital contribution from Northeast Utilities - - Cash dividends on preferred stock - - Cash dividends on common shares (16,000) - Other financing activities - - ------------- -------------- Net cash flows provided by/(used in) financing activities (16,000) - ------------- -------------- Net (decrease)/increase in cash for the year - 1 Cash and cash equivalents - beginning of year - 80 ------------- -------------- Cash and cash equivalents - end of year $ - $ 81 ============= ============== Supplemental Cash Flow Information: Cash paid/(refunded) during the year for: Interest, net of amounts capitalized $ - $ 255 ============= ============== Income taxes $ 8,423 $ (948) ============= ==============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. (b) See supporting statements. F-15 NORTHEAST UTILITIES AND SUBSIDIARIES Consolidating Statement of Cash Flows (a) Year Ended December 31, 2003 (Thousands of Dollars)
North Northeast Northeast Atlantic The Rocky Utilities Nuclear Energy The River Service Energy Service Quinnehtuk Realty Company Company Corporation Company Company ---------- ----------- ----------- ------------ ----------- Operating Activities: Net income/(loss) $ - $ - $ 1,621 $ (34) $ 1,444 Adjustments to reconcile to net cash provided by/(used in) operating activities: Depreciation 9,712 - - 55 2,695 Deferred income taxes and investment tax credits, net (2,383) - 740 24 (45) Amortization of regulatory assets - - - - - Amortization of rate reduction bonds - - - - - Amortization of recoverable energy costs - - - - Prepaid pension (1,624) - - - - Cumulative effect of accounting change - - - - - Regulatory overrecoveries/(refunds) - - - - - Net other sources/(uses) of cash 3,321 187 887 29 (1,414) Changes in current assets and liabilities: Restricted cash - LMP costs - - - - - Unrestricted cash from counterparties - - - - - Receivables and unbilled revenues, net (33,255) 400 13,405 - (288) Fuel, materials and supplies 151 - 74 - - Investments in securitizable assets - - - - - Other current assets (excludes cash) 7,601 (7) (405) (4) 35 Accounts payable 37,359 (4,101) (5,858) (15) (385) Accrued taxes 306 (799) (5,123) (84) 93 Other current liabilities 13,432 (3) (8,629) - (36) ---------- ----------- ----------- ------------ ----------- Net cash flows provided by/(used in) operating activities 34,620 (4,323) (3,288) (29) 2,099 ---------- ----------- ----------- ------------ ----------- Investing Activities: Investments in plant: Electric, gas and other utility plant (18,657) - - - (8,525) Competitive energy assets - - - - - ---------- ----------- ----------- ------------ ----------- Cash flows used for investments in plant (18,657) - - - (8,525) NU system Money Pool borrowing/(lending) 25 19,400 - - (11,150) Buyout/buydown of IPP contracts - - - - - CVEC acquisition special deposit - - - - - Other investment activities (15,954) - - - - ---------- ----------- ----------- ------------ ----------- Net cash flows (used in)/provided by investing activities (34,586) 19,400 - - (19,675) ---------- ----------- ----------- ------------ ----------- Financing Activities: Issuance of common shares - - - - - Repurchase of common shares - (15,028) - - - Issuance of long-term debt - - - - - Retirement of rate reduction bonds - - - - - Increase in short-term debt - - - - - Reacquisitions and retirements of long-term debt - - - - (2,294) Advance from parent - - - - - Capital contribution from Northeast Utilities - - - - 20,000 Cash dividends on preferred stock - - - - - Cash dividends on common shares - - - - - Other financing activities (9) - - - - ---------- ----------- ----------- ------------ ----------- Net cash flows provided by/(used in) financing activities (9) (15,028) - - 17,706 ---------- ----------- ----------- ------------ ----------- Net (decrease)/increase in cash for the year 25 49 (3,288) (29) 130 Cash and cash equivalents - beginning of year 450 54 12,630 83 - ---------- ----------- ----------- ------------ ----------- Cash and cash equivalents - end of year $ 475 $ 103 $ 9,342 $ 54 $ 130 ========== =========== =========== ============ =========== Supplemental Cash Flow Information: Cash paid/(refunded) during the year for: Interest, net of amounts capitalized $ - $ - $ - $ 43 $ 1,169 ========== =========== =========== ============ =========== Income taxes $ (8,379) $ (622) $ 6,399 $ 12 $ 956 ========== =========== =========== ============ ===========
NORTHEAST UTILITIES AND SUBSIDIARIES Consolidating Statement of Cash Flows (a) Year Ended December 31, 2003 (Thousands of Dollars)
NU Yankee Energy Enterprises, System, Inc. Charter Oak Inc. (consolidated) Energy, Inc. (consolidated) (b) (b) -------------- -------------- -------------- Operating Activities: Net income/(loss) $ 4,316 $ (114) $ (2,775) Adjustments to reconcile to net cash provided by/(used in) operating activities: Depreciation 22,779 - 15,320 Deferred income taxes and investment tax credits, net 10,433 80 11,510 Amortization of regulatory assets 702 - 3,749 Amortization of rate reduction bonds - - - Amortization of recoverable energy costs 697 - - Prepaid pension 2,126 - 1,440 Cumulative effect of accounting change (4,741) - - Regulatory overrecoveries/(refunds) (13,940) - - Net other sources/(uses) of cash 357 - (46,355) Changes in current assets and liabilities: Restricted cash - LMP costs - - - Unrestricted cash from counterparties - - (29,606) Receivables and unbilled revenues, net 18,774 - (38,997) Fuel, materials and supplies (16,839) - (217) Investments in securitizable assets - - - Other current assets (excludes cash) (3,437) - (44,671) Accounts payable (4,935) - 68,764 Accrued taxes 2,499 (78) (19,386) Other current liabilities 959 - 98,243 -------------- -------------- -------------- Net cash flows provided by/(used in) operating activities 19,750 (112) 17,019 -------------- -------------- -------------- Investing Activities: Investments in plant: Electric, gas and other utility plant (55,226) - (1) Competitive energy assets - - (15,888) -------------- -------------- -------------- Cash flows used for investments in plant (55,226) - (15,889) NU system Money Pool borrowing/(lending) 2,000 - (190,700) Buyout/buydown of IPP contracts - - - CVEC acquisition special deposit - - - Other investment activities 11,562 - (10,017) -------------- -------------- -------------- Net cash flows (used in)/provided by investing activities (41,664) - (216,606) -------------- -------------- -------------- Financing Activities: Issuance of common shares - - - Repurchase of common shares - - - Issuance of long-term debt - - 63,368 Retirement of rate reduction bonds - - - Increase in short-term debt 20,000 - - Reacquisitions and retirements of long-term debt (2,350) - (37,956) Advance from parent 5,000 - 144,000 Capital contribution from Northeast Utilities - - 17,200 Cash dividends on preferred stock - - - Cash dividends on common shares - - - Other financing activities - - - -------------- -------------- -------------- Net cash flows provided by/(used in) financing activities 22,650 - 186,612 -------------- -------------- -------------- Net (decrease)/increase in cash for the year 736 (112) (12,975) Cash and cash equivalents - beginning of year 642 273 29,896 -------------- -------------- -------------- Cash and cash equivalents - end of year $ 1,378 $ 161 $ 16,921 ============== ============== ============== Supplemental Cash Flow Information: Cash paid/(refunded) during the year for: Interest, net of amounts capitalized $ 13,104 $ - $ 43,179 ============== ============== ============== Income taxes $ (9,984) $ 118 $ 35,048 ============== ============== ==============
NORTHEAST UTILITIES AND SUBSIDIARIES Consolidating Statement of Cash Flows (a) Year Ended December 31, 2003 (Thousands of Dollars)
Eliminations Consolidated ------------ ------------ Operating Activities: Net income/(loss) $ 123,278 $ 126,711 Adjustments to reconcile to net cash provided by/(used in) operating activities: Depreciation 10,309 204,388 Deferred income taxes and investment tax credits, net 954 (120,603) Amortization of regulatory assets - 182,675 Amortization of rate reduction bonds - 153,172 Amortization of recoverable energy costs - 43,874 Prepaid pension (3,260) (31,816) Cumulative effect of accounting change - (4,741) Regulatory overrecoveries/(refunds) 3,367 273,715 Net other sources/(uses) of cash (29,966) (149,009) Changes in current assets and liabilities: Restricted cash - LMP costs - (93,630) Unrestricted cash from counterparties - (29,606) Receivables and unbilled revenues, net (102,453) 62,551 Fuel, materials and supplies 12,648 (34,223) Investments in securitizable assets - 12,443 Other current assets (excludes cash) (14,404) (24,863) Accounts payable 102,453 (7,436) Accrued taxes 19,642 (90,069) Other current liabilities 13,897 100,039 ------------ ------------ Net cash flows provided by/(used in) operating activities 136,465 573,572 ------------ ------------ Investing Activities: Investments in plant: Electric, gas and other utility plant (799) (532,251) Competitive energy assets - (17,707) ------------ ------------ Cash flows used for investments in plant (799) (549,958) NU system Money Pool borrowing/(lending) - - Buyout/buydown of IPP contracts - (20,437) CVEC acquisition special deposit - (30,104) Other investment activities (221,917) 21,698 ------------ ------------ Net cash flows (used in)/provided by investing activities (222,716) (578,801) ------------ ------------ Financing Activities: Issuance of common shares - 13,654 Repurchase of common shares (15,028) (20,537) Issuance of long-term debt - 268,368 Retirement of rate reduction bonds - (169,352) Increase in short-term debt - 49,000 Reacquisitions and retirements of long-term debt - (65,600) Advance from parent 149,000 - Capital contribution from Northeast Utilities 67,200 - Cash dividends on preferred stock - (5,559) Cash dividends on common shares (114,921) (73,090) Other financing activities - (4,792) ------------ ------------ Net cash flows provided by/(used in) financing activities 86,251 (7,908) ------------ ------------ Net (decrease)/increase in cash for the year - (13,137) Cash and cash equivalents - beginning of year - 50,333 ------------ ------------ Cash and cash equivalents - end of year $ - $ 37,196 ============ ============ Supplemental Cash Flow Information: Cash paid/(refunded) during the year for: Interest, net of amounts capitalized $ 9,388 $ 241,315 ============ ============ Income taxes $ - $ 248,344 ============ ============
F-16 THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES (a) Consolidating Balance Sheet (b) Assets December 31, 2003 (Thousands of Dollars)
The Connecticut CL&P Light and Receivables CL&P Power Company Corporation Funding LLC Eliminations Consolidated -------------- ------------- --------------- --------------- ---------------- ASSETS ------ Current Assets: Cash $ 5,813 $ - $ 1 $ - $ 5,814 Restricted cash - LMP costs 93,630 - - - 93,630 Investments in securitizable assets 7,382 246,465 - 87,382 166,465 Receivables, net 60,759 - - - 60,759 Accounts receivable from affiliated companies 155,670 143,602 - 225,286 73,986 Unbilled revenues 6,961 - - - 6,961 Taxes receivable - 225 - 225 - Notes receivable from affiliated companies - - 1,124,779 1,124,779 - Materials and supplies, at average cost 31,583 - - - 31,583 Derivative assets 115,370 - - - 115,370 Prepayments and other 12,521 - - - 12,521 -------------- ------------- --------------- --------------- ---------------- 489,689 390,292 1,124,780 1,437,672 567,089 -------------- ------------- --------------- --------------- ---------------- Property, Plant and Equipment: Electric utility 3,355,794 - - - 3,355,794 Less: Accumulated depreciation 1,018,173 - - - 1,018,173 -------------- ------------- --------------- --------------- ---------------- 2,337,621 - - - 2,337,621 Construction work in progress 224,277 - - - 224,277 -------------- ------------- --------------- --------------- ---------------- 2,561,898 - - - 2,561,898 -------------- ------------- --------------- --------------- ---------------- Deferred Debits and Other Assets: Regulatory assets 1,673,010 - - - 1,673,010 Prepaid pension 305,320 - - - 305,320 Investments in subsidiary companies, at equity 81,487 - - 81,487 - Other 80,864 - 18,713 - 99,577 -------------- ------------- --------------- --------------- ---------------- 2,140,681 - 18,713 81,487 2,077,907 -------------- ------------- --------------- --------------- ---------------- Total Assets $ 5,192,268 $ 390,292 $ 1,143,493 $ 1,519,159 $ 5,206,894 ============== ============= =============== =============== ================
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not included are the following inactive subsidiaries: Electric Power, Incorporated, The Nutmeg Power Company, The Connecticut Steam Company and CL&P Capital L.P. (b) Not covered by auditors' report. F-17 THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES (a) Consolidating Balance Sheet (b) Capitalization and Liabilities December 31, 2003 (Thousands of Dollars)
The Connecticut CL&P Light and Receivables CL&P Power Company Corporation Funding LLC Eliminations Consolidated -------------- ------------- -------------- --------------- ---------------- LIABILITIES AND CAPITALIZATION ------------------------------ Current Liabilities: Notes payable to banks $ - $ 80,000 $ - $ 80,000 $ - Notes payable to affiliated companies 1,215,904 - - 1,124,779 91,125 Accounts payable 134,821 3,334 - - 138,155 Accounts payable to affiliated companies 176,948 40,735 4 40,739 176,948 Accrued taxes 65,812 - - 225 65,587 Accrued interest 10,361 31,160 - 31,160 10,361 Derivative liabilities 54,566 - - - 54,566 Other 38,157 - 11,517 - 49,674 --------------- ------------- --------------- --------------- ---------------- 1,696,569 155,229 11,521 1,276,903 586,416 --------------- ------------- --------------- --------------- ---------------- Rate Reduction Bonds - - 1,124,779 - 1,124,779 --------------- ------------- --------------- --------------- ---------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 609,068 - - - 609,068 Accumulated deferred investment tax credits 90,885 - - - 90,885 Deferred contractual obligations 318,043 - - - 318,043 Regulatory liabilities 752,992 - - - 752,992 Other 79,935 - - - 79,935 --------------- ------------- --------------- --------------- ---------------- 1,850,923 - - - 1,850,923 --------------- ------------- --------------- --------------- ---------------- Capitalization: Long-Term Debt 830,149 - - - 830,149 --------------- ------------- --------------- --------------- ---------------- Preferred Stock - Non-redeemable 116,200 - - - 116,200 --------------- ------------- --------------- --------------- ---------------- Common Stockholder's Equity: Common stock 60,352 - - - 60,352 Capital surplus, paid in 326,629 160,829 7,193 168,022 326,629 Retained earnings 311,793 74,234 - 74,234 311,793 Accumulated other comprehensive loss (347) - - - (347) --------------- ------------- --------------- --------------- ---------------- Common Stockholder's Equity 698,427 235,063 7,193 242,256 698,427 --------------- ------------- --------------- --------------- ---------------- Total Capitalization 1,644,776 235,063 7,193 242,256 1,644,776 --------------- ------------- --------------- --------------- ---------------- Total Liabilities and Capitalization $ 5,192,268 $ 390,292 $ 1,143,493 $ 1,519,159 $ 5,206,894 =============== ============= =============== =============== ================
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not included are the following inactive subsidiaries: Electric Power, Incorporated, The Nutmeg Power Company, The Connecticut Steam Company and CL&P Capital L.P. (b) Not covered by auditors' report. F-18 THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES (a) Consolidating Statement of Income (b) Year Ended December 31, 2003 (Thousands of Dollars)
The Connecticut CL&P Light and Power Receivables CL&P Company Corporation Funding LLC Eliminations Consolidated ---------------- ------------- ------------- ------------- -------------- Operating Revenues $ 2,704,524 $ - $ 192,327 $ 192,327 $ 2,704,524 ---------------- ------------- ------------- ------------- -------------- Operating Expenses: Operation- 1,602,240 Fuel, purchased and net interchange power 1,602,240 - - - Other 379,426 613 192,327 192,327 380,039 Maintenance 73,066 - - - 73,066 Depreciation 104,513 - - - 104,513 Amortization of regulatory assets, net 98,670 - - - 98,670 Amortization of rate reduction bonds 103,285 - - - 103,285 Taxes other than income taxes 142,339 - - - 142,339 ---------------- ------------- ------------- ------------- -------------- Total operating expenses 2,503,539 613 192,327 192,327 2,504,152 ---------------- ------------- ------------- ------------- -------------- Operating Income/(Loss) 200,985 (613) - - 200,372 ---------------- ------------- ------------- ------------- -------------- Interest Expense: Interest on long-term debt 39,815 - - - 39,815 Interest on rate reduction bonds 70,284 - - - 70,284 Other interest 508 610 - 610 508 ---------------- ------------- ------------- ------------- -------------- Interest expense, net 110,607 610 - 610 110,607 ---------------- ------------- ------------- ------------- -------------- Other (Loss)/Income, Net Equity in earnings of subsidiaries 16,640 - - 16,640 - Other, net (24,181) 29,355 - 610 4,564 ---------------- ------------- ------------- ------------- -------------- Other (loss)/income, net (7,541) 29,355 - 17,250 4,564 ---------------- ------------- ------------- ------------- -------------- Income Before Income Tax Expense 82,837 28,132 - 16,640 94,329 Income Tax Expense 13,929 11,492 - - 25,421 ---------------- ------------- ------------- ------------- -------------- Net Income $ 68,908 $ 16,640 $ - $ 16,640 $ 68,908 ================ ============= ============= ============= ==============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not included are the following inactive subsidiaries: Electric Power, Incorporated, The Nutmeg Power Company, The Connecticut Steam Company and CL&P Capital L.P. (b) Not covered by auditors' report. F-19 THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES (a) Consolidating Statement of Retained Earnings (b) Year Ended December 31, 2003 (Thousands of Dollars)
The Connecticut CL&P Light and Power Receivables CL&P Company Corporation Funding LLC Eliminations Consolidated ---------------- ------------- ------------- ------------ -------------- Balance at beginning of period $ 308,554 $ 57,594 $ - $ 57,594 $ 308,554 Additions: Net income 68,908 16,640 - 16,640 68,908 ---------------- ------------- ------------- ------------ -------------- 377,462 74,234 - 74,234 377,462 ---------------- ------------- ------------- ------------ -------------- Deductions: Dividends declared: Preferred stock (at required annual rates) 5,559 - - - 5,559 Common stock $9.96 per share 60,110 - - - 60,110 ---------------- ------------- ------------- ------------ -------------- 65,669 - - - 65,669 ---------------- ------------- ------------- ------------ -------------- Balance at end of period $ 311,793 $ 74,234 $ - $ 74,234 $ 311,793 ================ ============= ============= ============ ==============
THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES (a) Consolidating Statement of Capital Surplus, Paid In (b) Year Ended December 31, 2003 (Thousands of Dollars)
The Connecticut CL&P Light and Power Receivables CL&P Company Corporation Funding LLC Eliminations Consolidated ---------------- ------------- ------------- ------------ -------------- Balance at beginning of period $ 327,299 $ 200,829 $ 7,193 $ 208,022 $ 327,299 Allocation of benefits - ESOP (856) - - - (856) Borrowing from The Connecticut Light and Power Company - (40,000) - (40,000) - Capital stock expenses, net 186 - - - 186 ---------------- ------------- ------------- ------------ -------------- Balance at end of period $ 326,629 $ 160,829 $ 7,193 $ 168,022 $ 326,629 ================ ============= ============= ============ ==============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not included are the following inactive subsidiaries: Electric Power, Incorporated, The Nutmeg Power Company, The Connecticut Steam Company and CL&P Capital, L.P. (b) Not covered by auditors' report. F-20 THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES Consolidating Statement of Cash Flows (a) (b) Year Ended December 31, 2003 (Thousands of Dollars)
The Connecticut Light and CL&P Power Receivables CL&P Company Corporation Funding LLC Eliminations Consolidated ------------ -------------- -------------- ------------- ------------ Operating Activities: Net income $ 68,908 $ 16,640 $ - $ 16,640 $ 68,908 Adjustments to reconcile to net cash provided by/(used in) operating activities: Depreciation 104,513 - - - 104,513 Deferred income taxes and investment tax credits, net (118,425) - - - (118,425) Amortization of regulatory assets 98,670 - - - 98,670 Amortization of rate reduction bonds 103,285 - - - 103,285 Amortization of recoverable energy costs 19,191 - - - 19,191 Prepaid pension (29,147) - - - (29,147) Regulatory overrecoveries 275,015 - - - 275,015 Net other uses of cash (97,543) - - - (97,544) Changes in current assets and liabilities: Restricted cash - LMP costs (93,630) - - - (93,630) Receivables and unbilled revenues, net (7,488) (32,495) - (43,137) 3,156 Materials and supplies 796 - - - 796 Investments in securitizable assets 41,798 (27,557) - 1,798 12,443 Other current assets (excludes cash) 6,886 (225) - (225) 6,886 Accounts payable 18,975 44,069 (5) 40,730 22,309 Accrued taxes 32,662 (1,200) - 225 31,237 Other current liabilities (2,776) 610 4,161 609 1,385 ------------ -------------- -------------- ------------- ------------ Net cash flows provided by/(used in) operating activities 421,690 (158) 4,156 16,640 409,048 ------------ -------------- -------------- ------------- ------------ Investing Activities: Investments in plant (314,628) - - - (314,628) NU system money pool (lending)/borrowing (27,924) - 120,949 - 93,025 Other investment activities (7,036) - (4,156) (16,640) 5,448 ------------ -------------- -------------- ------------- ------------ Net cash flows (used in)/provided by investing activities (349,588) - 116,793 (16,640) (216,155) ------------ -------------- -------------- ------------- ------------ Financing Activities: Retirement of rate reduction bonds - - (120,949) - (120,949) Increase in short-term debt - 40,000 - 40,000 - Borrowing from The Connecticut Light and Power Company - (40,000) - (40,000) - Cash dividends on preferred stock (5,559) - - - (5,559) Cash dividends on common stock (60,110) - - - (60,110) Other financing activities (620) - - - (620) ------------ -------------- -------------- ------------- ------------ Net cash flows used in financing activities (66,289) - (120,949) - (187,238) ------------ -------------- -------------- ------------- ------------ Net increase/(decrease) in cash for the year 5,813 (158) - - 5,655 Cash - beginning of year - 158 1 - 159 ------------ -------------- -------------- ------------- ------------ Cash - end of year $ 5,813 $ - $ 1 $ - $ 5,814 ============ ============== ============== ============= ============ Supplemental Cash Flow Information: Cash paid during the year for: Interest, net of amounts capitalized $ 112,258 $ - $ - $ - $ 112,258 ============ ============== ============== ============= ============ Income taxes $ 92,250 $ 12,917 $ - $ - $ 105,167 ============ ============== ============== ============= ============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not included are the following inactive subsidiaries: Electric Power, Incorporated, The Nutmeg Power Company, The Connecticut Steam Company and CL&P Capital L.P. (b) Not covered by auditors' report. F-21 THIS PAGE INTENTIONALLY LEFT BLANK F-22 PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES Consolidating Balance Sheet (a) Assets December 31, 2003 (Thousands of Dollars)
Public Service Company of PSNH PSNH New Hampshire Funding LLC Funding LLC 2 Properties, Inc. Eliminations -------------- ------------- -------------- ---------------- -------------- ASSETS ------ Current Assets: Cash $ - $ 1 $ 1 $ 2,735 $ - Special deposits 30,104 - - - - Receivables, net 67,118 - - 2 - Accounts receivable from affiliated companies 11,525 - - 102 337 Unbilled revenues 39,220 - - - - Notes receivable from affiliated companies - 427,495 37,896 - 465,390 Fuel, materials, and supplies, at average cost 54,533 - - - - Derivative assets 1,510 - - - - Prepayments and other 9,925 - - 21 - --------------- ------------- -------------- ---------------- -------------- 213,935 427,496 37,897 2,860 465,727 --------------- ------------- -------------- ---------------- -------------- Property, Plant and Equipment: Electric utility 1,517,313 - - 201 - Other - - - 5,706 - --------------- ------------- -------------- ---------------- -------------- 1,517,313 - - 5,907 - Less: Accumulated depreciation 632,684 - - 2,345 - --------------- ------------- -------------- ---------------- -------------- 884,629 - - 3,562 - Construction work in progress 37,401 - - - - --------------- ------------- -------------- ---------------- -------------- 922,030 - - 3,562 - --------------- ------------- -------------- ---------------- -------------- Deferred Debits and Other Assets: Regulatory assets 969,434 - - - - Investments in subsidiary companies, at equity 9,789 - - - 9,789 Other 30,248 26,707 3,305 172 108 --------------- ------------- -------------- ---------------- -------------- 1,009,471 26,707 3,305 172 9,897 --------------- ------------- -------------- ---------------- -------------- Total Assets $ 2,145,436 $ 454,203 $ 41,202 $ 6,594 $ 475,624 =============== ============= ============== ================ ==============
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES Consolidating Balance Sheet (a) Assets December 31, 2003 (Thousands of Dollars) Consolidated --------------- ASSETS ------ Current Assets: Cash $ 2,737 Special deposits 30,104 Receivables, net 67,121 Accounts receivable from affiliated companies 11,291 Unbilled revenues 39,220 Notes receivable from affiliated companies - Fuel, materials, and supplies, at average cost 54,533 Derivative assets 1,510 Prepayments and other 9,945 --------------- 216,461 --------------- Property, Plant and Equipment: Electric utility 1,517,513 Other 5,707 --------------- 1,523,220 Less: Accumulated depreciation 635,029 --------------- 888,191 Construction work in progress 37,401 --------------- 925,592 --------------- Deferred Debits and Other Assets: Regulatory assets 969,434 Investments in subsidiary companies, at equity - Other 60,324 --------------- 1,029,758 --------------- Total Assets $ 2,171,811 =============== Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-23 PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES Consolidating Balance Sheet (a) Capitalization and Liabilities December 31, 2003 (Thousands of Dollars)
Public Service Company of PSNH PSNH New Hampshire Funding LLC Funding LLC 2 Properties, Inc. Eliminations --------------- ------------- -------------- ----------------- -------------- LIABILITIES AND CAPITALIZATION ------------------------------ Current Liabilities: Notes payable to banks $ 10,000 $ - $ - $ - $ - Notes payable to affiliated companies 514,290 - - - 465,390 Accounts payable 48,382 - - 26 - Accounts payable to affiliated companies 14,002 194 17 34 337 Accrued taxes 2,421 - - 122 - Accrued interest 2,358 7,989 547 - - Unremitted rate reduction bond collections - 9,881 1,170 - 11,051 Derivative liabilities 1,414 - - - - Other 16,682 4 4 - (11,051) --------------- ------------- -------------- ---------------- -------------- 609,549 18,068 1,738 182 465,727 --------------- ------------- -------------- ---------------- -------------- Rate Reduction Bonds - 433,009 39,213 - - --------------- ------------- -------------- ---------------- -------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 339,038 - - - 108 Accumulated deferred investment tax credits 2,096 - - - - Deferred contractual obligations 64,237 - - - - Regulatory liabilities 272,081 - - - - Accrued pension 44,766 - - - - Other 26,124 - - - - --------------- ------------- -------------- ---------------- -------------- 748,342 - - - 108 --------------- ------------- -------------- ---------------- -------------- Capitalization: Long-Term Debt 407,285 - - - - --------------- ------------- -------------- ---------------- -------------- Common Stockholder's Equity: Common stock - - - 1 1 Capital surplus, paid in 156,555 3,126 251 - 3,377 Retained earnings 223,822 - - 6,411 6,411 Accumulated other comprehensive loss (117) - - - - --------------- ------------- -------------- ---------------- -------------- Common Stockholder's Equity 380,260 3,126 251 6,412 9,789 --------------- ------------- -------------- ---------------- -------------- Total Capitalization 787,545 3,126 251 6,412 9,789 --------------- ------------- -------------- ---------------- -------------- Total Liabilities and Capitalization $ 2,145,436 $ 454,203 $ 41,202 $ 6,594 $ 475,624 =============== ============= ============== ================ ==============
Consolidated --------------- LIABILITIES AND CAPITALIZATION ------------------------------ Current Liabilities: Notes payable to banks $ 10,000 Notes payable to affiliated companies 48,900 Accounts payable 48,408 Accounts payable to affiliated companies 13,911 Accrued taxes 2,543 Accrued interest 10,894 Unremitted rate reduction bond collections - Derivative liabilities 1,414 Other 27,740 --------------- 163,810 --------------- Rate Reduction Bonds 472,222 --------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 338,930 Accumulated deferred investment tax credits 2,096 Deferred contractual obligations 64,237 Regulatory liabilities 272,081 Accrued pension 44,766 Other 26,124 --------------- 748,234 --------------- Capitalization: Long-Term Debt 407,285 --------------- Common Stockholder's Equity: Common stock - Capital surplus, paid in 156,555 Retained earnings 223,822 Accumulated other comprehensive loss (117) --------------- Common Stockholder's Equity 380,260 --------------- Total Capitalization 787,545 --------------- Total Liabilities and Capitalization $ 2,171,811 =============== Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-24 PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES Consolidating Statement of Income (a) Year Ended December 31, 2003 (Thousands of Dollars)
Public Service Company of PSNH PSNH New Hampshire Funding LLC Funding LLC 2 Properties, Inc. Eliminations --------------- ------------- -------------- ---------------- -------------- Operating Revenues $ 888,121 $ 60,882 $ 9,808 $ 723 $ 71,349 --------------- ------------- -------------- ---------------- -------------- Operating Expenses: Operation- Fuel, purchased and net interchange power 400,518 - - - - Other 143,198 60,882 9,808 10 71,349 Maintenance 64,872 - - - - Depreciation 43,322 - - - - Amortization of regulatory assets, net 37,861 - - - - Amortization of rate reduction bonds 40,040 - - - - Taxes other than income taxes 33,363 - - 44 - --------------- ------------- -------------- ---------------- -------------- Total operating expenses 763,174 60,882 9,808 54 71,349 --------------- ------------- -------------- ---------------- -------------- Operating Income 124,947 - - 669 - --------------- ------------- -------------- ---------------- -------------- Interest Expense: Interest on long-term debt 15,408 - - - - Interest on rate reduction bonds 29,081 - - - - Other interest 727 - - - - --------------- ------------- -------------- ---------------- -------------- Interest expense, net 45,216 - - - - --------------- ------------- -------------- ---------------- -------------- Other (Loss)/Income, Net Equity in earnings of subsidiaries 403 - - - 403 Other, net (5,000) - - (3) - --------------- ------------- -------------- ---------------- -------------- Other (loss)/income, net (4,597) - - (3) 403 --------------- ------------- -------------- ---------------- -------------- Income Before Income Tax Expense 75,134 - - 666 403 Income Tax Expense 29,510 - - 263 - --------------- ------------- -------------- ---------------- -------------- Net Income $ 45,624 $ - $ - $ 403 $ 403 =============== ============= ============== ================ ==============
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES Consolidating Statement of Income (a) Year Ended December 31, 2003 (Thousands of Dollars) Consolidated --------------- Operating Revenues $ 888,186 --------------- Operating Expenses: Operation- Fuel, purchased and net interchange power 400,518 Other 142,550 Maintenance 64,872 Depreciation 43,322 Amortization of regulatory assets, net 37,861 Amortization of rate reduction bonds 40,040 Taxes other than income taxes 33,407 --------------- Total operating expenses 762,570 --------------- Operating Income 125,616 --------------- Interest Expense: Interest on long-term debt 15,408 Interest on rate reduction bonds 29,081 Other interest 727 --------------- Interest expense, net 45,216 --------------- Other (Loss)/Income, Net Equity in earnings of subsidiaries - Other, net (5,003) --------------- Other (loss)/income, net (5,003) --------------- Income Before Income Tax Expense 75,397 Income Tax Expense 29,773 --------------- Net Income $ 45,624 =============== Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-25 PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES Consolidating Statement of Retained Earnings (a) Year Ended December 31, 2003 (Thousands of Dollars)
Public Service Company of PSNH PSNH Properties, New Hampshire Funding LLC Funding LLC 2 Inc. Eliminations Consolidated --------------- ------------ -------------- ------------- ------------- -------------- Balance at beginning of period $ 194,998 $ - $ - $ 6,008 $ 6,008 $ 194,998 Additions: Net income 45,624 - - 403 403 45,624 --------------- ------------ -------------- ------------- ------------- -------------- 240,622 - - 6,411 6,411 240,622 --------------- ------------ -------------- ------------- ------------- -------------- Deductions: Dividends declared: Common stock $55,813.98 per share 16,800 - - - - 16,800 --------------- ------------ -------------- ------------- ------------- -------------- 16,800 - - - - 16,800 --------------- ------------ -------------- ------------- ------------- -------------- Balance at end of period $ 223,822 $ - $ - $ 6,411 $ 6,411 $ 223,822 =============== ============ ============== ============= ============= ==============
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES Consolidating Statement of Capital Surplus, Paid In (a) Year Ended December 31, 2003 (Thousands of Dollars)
Public Service Company of PSNH PSNH Properties, New Hampshire Funding LLC Funding LLC 2 Inc. Eliminations Consolidated --------------- ------------- -------------- ------------- ------------- -------------- Balance at beginning of period $ 126,937 $ 3,126 $ 251 $ - $ 3,377 $ 126,937 Capital contribution from NU Parent 30,000 - - - - 30,000 Allocation of benefits - ESOP (382) - - - - (382) --------------- ------------- -------------- ------------- ------------- -------------- Balance at end of period $ 156,555 $ 3,126 $ 251 $ - $ 3,377 $ 156,555 =============== ============= ============== ============= ============= ==============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-26 PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES Consolidating Statement of Cash Flows (a) Year Ended December 31, 2003 (Thousands of Dollars)
Public Service Company of PSNH PSNH Properties, New Hampshire Funding LLC Funding LLC 2 Inc. Eliminations --------------- ------------- -------------- ---------------- -------------- Operating Activities: Net income $ 45,624 $ - $ - $ 403 $ 403 Adjustments to reconcile to net cash provided by/(used in) operating activities: Depreciation 43,322 - - - - Deferred income taxes and investment tax credits, net (6,667) - - (3) - Amortization of regulatory assets 37,861 - - - - Amortization of rate reduction bonds 40,040 - - - - Amortization of recoverable energy costs 23,388 - - - - Regulatory recoveries 10,778 - - - - Net other (uses)/sources of cash (30,098) - - 1,052 - Changes in current assets and liabilities: Receivables and unbilled revenues, net (7,991) - - (30) (265) Fuel, materials and supplies (5,351) - - - - Other current assets (excludes cash) 57 - - 175 145 Accounts payable 3,960 (19) (4) 51 265 Accrued taxes (63,040) - - 121 (145) Other current liabilities 3,850 (6,474) (8,356) - - --------------- ------------- -------------- ---------------- -------------- Net cash flows provided by/(used in) operating activities 95,733 (6,493) (8,360) 1,769 403 --------------- ------------- -------------- ---------------- -------------- Investing Activities: Investments in plant (105,626) - - - - NU system Money Pool borrowing 31,910 32,278 7,712 - - Buyout of IPP contracts (20,437) - - - - CVEC acquisition special deposit (30,104) - - - - Other investment activities 1,179 5,387 8,096 - (403) --------------- ------------- -------------- ---------------- -------------- Net cash flows (used in)/provided by investing activities (123,078) 37,665 15,808 - (403) --------------- ------------- -------------- ---------------- -------------- Financing Activities: Retirement of rate reduction bonds - (31,172) (7,448) - - Increase in short-term debt 10,000 - - - - Capital contribution from Northeast Utilities 30,000 - - - - Cash dividends on common stock (16,800) - - - - Other financing activities (206) - - - - --------------- ------------- -------------- ---------------- -------------- Net cash flows provided by/(used in) financing activities 22,994 (31,172) (7,448) - - --------------- ------------- -------------- ---------------- -------------- Net (decrease)/increase in cash for the year (4,351) - - 1,769 - Cash - beginning of year 4,351 1 1 966 - --------------- ------------- -------------- ---------------- -------------- Cash - end of year $ - $ 1 $ 1 $ 2,735 $ - =============== ============= ============== ================ ============== Supplemental Cash Flow Information: Cash paid during the year for: Interest, net of amounts capitalized $ 45,312 $ 270 $ 57 $ - $ - =============== ============= ============== ================ ============== Income taxes $ 97,137 $ - $ - $ 28 $ - =============== ============= ============== ================ ==============
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES Consolidating Statement of Cash Flows (a) Year Ended December 31, 2003 (Thousands of Dollars) Consolidated --------------- Operating Activities: Net income $ 45,624 Adjustments to reconcile to net cash provided by/(used in) operating activities: Depreciation 43,322 Deferred income taxes and investment tax credits, net (6,670) Amortization of regulatory assets 37,861 Amortization of rate reduction bonds 40,040 Amortization of recoverable energy costs 23,388 Regulatory recoveries 10,778 Net other (uses)/sources of cash (29,046) Changes in current assets and liabilities: Receivables and unbilled revenues, net (7,757) Fuel, materials and supplies (5,351) Other current assets (excludes cash) 87 Accounts payable 3,723 Accrued taxes (62,774) Other current liabilities (10,981) --------------- Net cash flows provided by/(used in) operating activities 82,244 --------------- Investing Activities: Investments in plant (105,626) NU system Money Pool borrowing 71,900 Buyout of IPP contracts (20,437) CVEC acquisition special deposit (30,104) Other investment activities 15,066 --------------- Net cash flows (used in)/provided by investing activities (69,201) --------------- Financing Activities: Retirement of rate reduction bonds (38,619) Increase in short-term debt 10,000 Capital contribution from Northeast Utilities 30,000 Cash dividends on common stock (16,800) Other financing activities (206) --------------- Net cash flows provided by/(used in) financing activities (15,625) --------------- Net (decrease)/increase in cash for the year (2,582) Cash - beginning of year 5,319 --------------- Cash - end of year $ 2,737 =============== Supplemental Cash Flow Information: Cash paid during the year for: Interest, net of amounts capitalized $ 45,639 =============== Income taxes $ 97,165 =============== Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-27 THIS PAGE INTENTIONALLY LEFT BLANK F-28 WESTERN MASSACHUSETTS ELECTRIC COMPANY AND SUBSIDIARY Consolidating Balance Sheet (a) Assets December 31, 2003 (Thousands of Dollars)
Western Massachusetts WMECO Electric Funding Company LLC Eliminations Consolidated ------- --- ------------ ------------ ASSETS ------ Current Assets: Cash $ - $ 1 $ - $ 1 Receivables, net 40,103 - - 40,103 Accounts receivable from affiliated companies 34 - 13 20 Unbilled revenues 10,299 - - 10,299 Notes receivable from affiliated companies - 132,056 132,056 - Materials and supplies, at average cost 1,584 - - 1,584 Prepayments and other 1,139 - - 1,139 ------------- ------------- ------------- ------------- 53,159 132,057 132,069 53,146 ------------- ------------- ------------- ------------- Property, Plant and Equipment: Electric utility 612,450 - - 612,450 Less: Accumulated depreciation 177,803 - - 177,803 ------------- ------------- ------------- ------------- 434,647 - - 434,647 Construction work in progress 13,124 - - 13,124 ------------- ------------- ------------- ------------- 447,771 - - 447,771 ------------- ------------- ------------- ------------- Deferred Debits and Other Assets: Regulatory assets 268,180 - - 268,180 Prepaid pension 75,386 - - 75,386 Investments in subsidiary company, at equity 776 - 776 - Other 14,895 4,186 - 19,081 ------------- ------------- ------------- ------------- 359,237 4,186 776 362,647 ------------- ------------- ------------- ------------- Total Assets $ 860,167 $ 136,243 $ 132,845 $ 863,564 ============= ============= ============= =============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-29 WESTERN MASSACHUSETTS ELECTRIC COMPANY AND SUBSIDIARY Consolidating Balance Sheet (a) Capitalization and Liabilities December 31, 2003 (Thousands of Dollars)
Western Massachusetts WMECO Electric Funding Company LLC Eliminations Consolidated ------- --- ------------ ------------ LIABILITIES AND CAPITALIZATION ------------------------------ Current Liabilities: Notes payable to banks $ 10,000 $ - $ - $ 10,000 Notes payable to affiliated companies 163,456 - 132,056 31,400 Accounts payable 10,173 - - 10,173 Accounts payable to affiliated companies 13,790 14 13 13,789 Accrued taxes 765 - - 765 Accrued interest 1,820 723 - 2,544 Other 8,015 1,770 - 9,785 ------------- ------------- ------------- ------------- 208,019 2,507 132,069 78,456 ------------- ------------- ------------- ------------- Rate Reduction Bonds - 132,960 - 132,960 ------------- ------------- ------------- ------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 216,547 - - 216,547 Accumulated deferred investment tax credits 3,326 - - 3,326 Deferred contractual obligations 86,937 - - 86,937 Regulatory liabilities 27,776 - - 27,776 Other 8,357 - - 8,357 ------------- ------------- ------------- ------------- 342,943 - - 342,943 ------------- ------------- ------------- ------------- Capitalization: Long-Term Debt 157,202 - - 157,202 ------------- ------------- ------------- ------------- Common Stockholder's Equity: Common stock 10,866 - - 10,866 Capital surplus, paid in 69,544 776 776 69,544 Retained earnings 71,677 - - 71,677 Accumulated other comprehensive loss (84) - - (84) ------------- ------------- ------------- ------------- Common Stockholder's Equity 152,003 776 776 152,003 ------------- ------------- ------------- ------------- Total Capitalization 309,205 776 776 309,205 ------------- ------------- ------------- ------------- Total Liabilities and Capitalization $ 860,167 $ 136,243 $ 132,845 $ 863,564 ============= ============= ============= =============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-30 WESTERN MASSACHUSETTS ELECTRIC COMPANY AND SUBSIDIARY Consolidating Statement of Income (a) Year Ended December 31, 2003 (Thousands of Dollars)
Western Massachusetts WMECO Electric Funding Company LLC Eliminations Consolidated ----------------- ------------- ------------ -------------- Operating Revenues $ 391,178 $ 19,046 $ 19,046 $ 391,178 ----------------- ------------- ------------ -------------- Operating Expenses: Operation- Fuel, purchased and net interchange power 198,985 - - 198,985 Other 59,020 19,046 19,046 59,020 Maintenance 15,289 - - 15,289 Depreciation 14,104 - - 14,104 Amortization of regulatory assets, net 41,695 - - 41,695 Amortization of rate reduction bonds 9,847 - - 9,847 Taxes other than income taxes 11,844 - - 11,844 ----------------- ------------- ------------ -------------- Total operating expenses 350,784 19,046 19,046 350,784 ----------------- ------------- ------------ -------------- Operating Income 40,394 - - 40,394 ----------------- ------------- ------------ -------------- Interest Expense: Interest on long-term debt 3,860 - - 3,860 Interest on rate reduction bonds 8,994 - - 8,994 Other interest 965 - - 965 ----------------- ------------- ------------ -------------- Interest expense, net 13,819 - - 13,819 ----------------- ------------- ------------ -------------- Other Income, net 3,167 - - 3,167 ----------------- ------------- ------------ -------------- Income Before Income Tax Expense 29,742 - - 29,742 Income Tax Expense 13,530 - - 13,530 ----------------- ------------- ------------ -------------- Net Income $ 16,212 $ - $ - $ 16,212 ================= ============= ============ ==============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-31 WESTERN MASSACHUSETTS ELECTRIC COMPANY AND SUBSIDIARY Consolidating Statement of Retained Earnings (a) Year Ended December 31, 2003 (Thousands of Dollars)
Western Massachusetts Electric WMECO Company Funding LLC Eliminations Consolidated ---------------- ------------- -------------- --------------- Balance at beginning of period $ 77,476 $ - $ - $ 77,476 Additions: Net income 16,212 - - 16,212 ---------------- ------------- -------------- --------------- 93,688 - - 93,688 ---------------- ------------- -------------- --------------- Deductions: Dividends declared: Common stock $50.64 per share 22,011 - - 22,011 ---------------- ------------- -------------- --------------- 22,011 - - 22,011 ---------------- ------------- -------------- --------------- Balance at end of period $ 71,677 $ - $ - $ 71,677 ================ ============= ============== =============== WESTERN MASSACHUSETTS ELECTRIC COMPANY AND SUBSIDIARY Consolidating Statement of Capital Surplus, Paid In (a) Year Ended December 31, 2003 (Thousands of Dollars) Western Massachusetts Electric WMECO Company Funding LLC Eliminations Consolidated ---------------- ------------- -------------- --------------- Balance at beginning of period $ 69,712 $ 776 $ 776 $ 69,712 Allocation of benefits - ESOP (168) - - (168) ---------------- ------------- -------------- --------------- Balance at end of period $ 69,544 $ 776 $ 776 $ 69,544 ================ ============= ============== ===============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-32 WESTERN MASSACHUSETTS ELECTRIC COMPANY AND SUBSIDIARY Consolidating Statement of Cash Flows (a) Year Ended December 31, 2003 (Thousands of Dollars)
Western Massachusetts WMECO Electric Funding Company LLC Eliminations Consolidated --------------- -------------- --------------- --------------- Operating Activities: Net income $ 16,212 $ - $ - $ 16,212 Adjustments to reconcile to net cash provided by operating activities: Depreciation 14,104 - - 14,104 Deferred income taxes and investment tax credits, net (14,315) - - (14,315) Amortization of regulatory assets 41,695 - - 41,695 Amortization of rate reduction bonds 9,847 - - 9,847 Amortization of recoverable energy costs 598 - - 598 Prepaid pension (7,870) - - (7,870) Regulatory overrecoveries 6,265 - - 6,265 Net other uses of cash (15,683) - - (15,683) Changes in current assets and liabilities: Receivables and unbilled revenues, net 7,080 - - 7,079 Materials and supplies 237 - - 237 Other current assets (excludes cash) 331 - - 330 Accounts payable 15 - - 14 Accrued taxes (3,569) - - (3,569) Other current liabilities 1,232 1,031 - 2,266 --------------- -------------- --------------- --------------- Net cash flows provided by operating activities 56,179 1,031 - 57,210 --------------- -------------- --------------- --------------- Investing Activities: Investments in plant (30,386) - - (30,386) NU system money pool (lending)/borrowing (64,345) 9,845 - (54,500) Other investment activities 2,471 (1,094) - 1,377 --------------- -------------- --------------- --------------- Net cash flows (used in)/provided by investing activities (92,260) 8,751 - (83,509) --------------- -------------- --------------- --------------- Financing Activities: Issuance of long-term debt 55,000 - - 55,000 Retirement of rate reduction bonds - (9,782) - (9,782) Increase in short-term debt 3,000 - - 3,000 Cash dividends on common stock (22,011) - - (22,011) Other financing activities (30) - - (30) --------------- -------------- --------------- --------------- Net cash flows provided by/(used in) financing activities 35,959 (9,782) - 26,177 --------------- -------------- --------------- --------------- Net decrease in cash for the year (122) - - (122) Cash - beginning of year 122 1 - 123 --------------- -------------- --------------- --------------- Cash - end of year $ - $ 1 $ - $ 1 =============== ============== =============== =============== Supplemental Cash Flow Information: Cash paid during the year for: Interest, net of amounts capitalized $ 13,507 $ 53 $ - $ 13,560 =============== ============== =============== =============== Income taxes $ 31,807 $ - $ - $ 31,807 =============== ============== =============== ===============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-33 THIS PAGE INTENTIONALLY LEFT BLANK F-34 HOLYOKE WATER POWER COMPANY AND SUBSIDIARY Consolidating Balance Sheet (a) Assets December 31, 2003 (Thousands of Dollars)
Holyoke Holyoke Water Power and Power Electric Company Company Eliminations Consolidated ------- ------- ------------ ------------ ASSETS ------ Current Assets: Cash $ 63 $ 18 $ - $ 81 Receivables, net 5 12 - 17 Accounts receivable from affiliated companies 4,049 3,986 3,986 4,049 Taxes receivable 315 - 52 263 Fuel, materials, and supplies, at average cost 7,788 - - 7,788 Prepayments and other 176 45 - 221 ---------------- ------------- ----------- -------------- 12,396 4,061 4,038 12,419 ---------------- ------------- ----------- -------------- Property, Plant and Equipment: Competitive energy 35,333 1,418 - 36,751 Less: Accumulated depreciation 33,026 1,096 - 34,122 ---------------- ------------- ----------- -------------- 2,307 322 - 2,629 Construction work in progress 3,852 37 - 3,889 ---------------- ------------- ----------- -------------- 6,159 359 - 6,518 ---------------- ------------- ----------- -------------- Deferred Debits and Other Assets: Deferred financing costs 672 - - 672 Prepaid pension 2,515 - - 2,515 Investments in subsidiary company, at equity 383 - 383 - Other 1,590 39 39 1,590 ---------------- ------------- ----------- -------------- 5,160 39 422 4,777 ---------------- ------------- ----------- -------------- Total Assets $ 23,715 $ 4,459 $ 4,460 $ 23,714 ================ ============= =========== ==============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-35 HOLYOKE WATER POWER COMPANY AND SUBSIDIARY Consolidating Balance Sheet (a) Capitalization and Liabilities December 31, 2003 (Thousands of Dollars)
Holyoke Holyoke Water Power and Power Electric Company Company Eliminations Consolidated ------- ------- ------------ ------------ LIABILITIES AND CAPITALIZATION ------------------------------ Current Liabilities: Notes payable to affiliated companies $ 1,400 $ - $ - $ 1,400 Accounts payable 905 - - 905 Accounts payable to affiliated companies 1,553 4,024 3,986 1,591 Accrued taxes 186 52 52 186 ---------------- ------------- ----------- -------------- 4,044 4,076 4,038 4,082 ---------------- ------------- ----------- -------------- Deferred Credits and Other Liabilities: Accumulated deferred investment tax credits 1,535 - 39 1,496 Regulatory liabilities 170 - - 170 Other 3,611 3 3 3,611 ---------------- ------------- ----------- -------------- 5,316 3 42 5,277 ---------------- ------------- ----------- -------------- Capitalization: Long-Term Debt from parent companies 9,600 181 181 9,600 ---------------- ------------- ----------- -------------- Common Stockholder's Equity: Common stock 2,400 485 485 2,400 Capital surplus, paid in 5,966 - - 5,966 Accumulated deficit (3,611) (286) (286) (3,611) ---------------- ------------- ----------- -------------- Common Stockholder's Equity 4,755 199 199 4,755 ---------------- ------------- ----------- -------------- Total Capitalization 14,355 380 380 14,355 ---------------- ------------- ----------- -------------- Total Liabilities and Capitalization $ 23,715 $ 4,459 $ 4,460 $ 23,714 ================ ============= =========== ==============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-36 HOLYOKE WATER POWER COMPANY AND SUBSIDIARY Consolidating Statement of Income (a) Year Ended December 31, 2003 (Thousands of Dollars)
Holyoke Holyoke Water Power and Power Electric Company Company Eliminations Consolidated ---------------- ------------- ------------ -------------- Operating Revenues $ 41,398 $ 41,115 $ 40,835 $ 41,679 ---------------- ------------- ------------ -------------- Operating Expenses: Operation- Fuel, purchased and net interchange power 29,759 40,911 40,835 29,836 Other 7,798 (27) - 7,771 Maintenance 4,486 - - 4,486 Depreciation 590 24 - 613 Amortization (1) - - (1) Taxes other than income taxes 1,006 43 - 1,049 ---------------- ------------- ------------ -------------- Total operating expenses 43,638 40,951 40,835 43,754 ---------------- ------------- ------------ -------------- Operating(Loss)/ Income (2,240) 164 - (2,075) ---------------- ------------- ------------ -------------- Interest Expense: Interest on long-term debt (7) - - (7) Other interest 206 19 19 206 ---------------- ------------- ------------ -------------- Interest expense, net 199 19 19 199 ---------------- ------------- ------------ -------------- Other Income, Net Equity in earnings of subsidiary 82 - 82 - Other, net 77 - 19 57 ---------------- ------------- ------------ -------------- Other income, net 159 - 101 57 ---------------- ------------- ------------ -------------- (Loss)/Income Before Income Tax (Benefit)/Expense (2,280) 145 82 (2,217) Income Tax (Benefit)/Expense (814) 63 - (751) ---------------- ------------- ------------ -------------- Net (Loss)/Income $ (1,466) $ 82 $ 82 $ (1,466) ================ ============= ============ ==============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-37 HOLYOKE WATER POWER COMPANY AND SUBSIDIARY Consolidating Statement of Retained Earnings (a) Year Ended December 31, 2003 (Thousands of Dollars)
Holyoke Holyoke Water Power and Power Electric Company Company Eliminations Consolidated ----------------- ---------------- -------------- ---------------- Balance at beginning of period $ (2,145) $ (368) $ (368) $ (2,145) Additions: Net (loss)/income (1,466) 82 82 (1,466) ----------------- ---------------- -------------- ---------------- Balance at end of period $ (3,611) $ (286) $ (286) $ (3,611) ================= ================ ============== ================ HOLYOKE WATER POWER COMPANY AND SUBSIDIARY Consolidating Statement of Capital Surplus, Paid In (a) Year Ended December 31, 2003 (Thousands of Dollars) Holyoke Holyoke Water Power and Power Electric Company Company Eliminations Consolidated ----------------- ---------------- -------------- ---------------- Balance at beginning of period $ 5,969 $ - $ - $ 5,969 Allocation of benefits - ESOP (3) - - (3) ----------------- ---------------- -------------- ---------------- Balance at end of period $ 5,966 $ - $ - $ 5,966 ================= ================ ============== ================
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-38 HOLYOKE WATER POWER COMPANY AND SUBSIDIARY Consolidating Statement of Cash Flows (a) Year Ended December 31, 2003 (Thousands of Dollars)
Holyoke Holyoke Power and Water Power Electric Company Company Eliminations Consolidated ---------------- --------------- ---------------- ------------- Operating Activities: Net (loss)/income $ (1,466) $ 82 $ 82 $ (1,466) Adjustments to reconcile to net cash (used in)/provided by operating activities: Depreciation 590 24 - 614 Deferred income taxes and investment tax credits, net (188) (1) - (189) Amortization (1) - - (1) Regulatory refunds (869) - - (869) Net other sources/(uses) of cash 1,057 (411) (407) 1,053 Changes in current assets and liabilities: Receivables and unbilled revenues, net (880) (511) (856) (535) Fuel, materials and supplies (427) - - (427) Other current assets (excludes cash) 561 (32) (35) 565 Accounts payable (885) 880 856 (862) Accrued taxes 24 36 36 24 Other current liabilities (22) (12) - (34) ---------------- --------------- ---------------- ------------- Net cash flows (used in)/provided by operating activities (2,506) 55 (324) (2,127) ---------------- --------------- ---------------- ------------- Investing Activities: Competitive energy assets (1,782) (37) - (1,819) NU system Money Pool borrowing 3,500 - - 3,500 Other investment activities 771 - 324 447 ---------------- --------------- ---------------- ------------- Net cash flows provided by/(used in) investing activities 2,489 (37) 324 2,128 ---------------- --------------- ---------------- ------------- Net (decrease)/increase in cash for the year (17) 18 - 1 Cash - beginning of year 80 - - 80 ---------------- --------------- ---------------- ------------- Cash - end of year $ 63 $ 18 $ - $ 81 ================ =============== ================ ============= Supplemental Cash Flow Information: Cash paid/(refunded) during the year for: Interest, net of amounts capitalized $ 255 $ 19 $ 19 $ 255 ================ =============== ================ ============= Income taxes $ (973) $ 25 $ - $ (948) ================ =============== ================ =============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-39 THIS PAGE INTENTIONALLY LEFT BLANK F-40 YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES Consolidating Balance Sheet (a) Assets December 31, 2003 (Thousands of Dollars)
Yankee Energy Yankee Gas NorConn System, Services Properties Housatonic Inc. Company Inc. Corporation ---------------- ------------------- ------------- ----------------- ASSETS ------ Current Assets: Cash $ - $ 889 $ 45 $ - Receivables, net - 51,613 - - Accounts receivable from affiliated companies 2 8,593 16 100 Unbilled revenues - 16,051 - - Taxes receivable - - - 24 Notes receivable from affiliated companies 1,700 - - - Fuel, materials, and supplies, at average cost - 33,541 - - Derivative assets - 2,962 - - Prepayments and other - 6,864 - - ---------------- ------------------- ------------- ----------------- 1,702 120,513 61 124 ---------------- ------------------- ------------- ----------------- Property, Plant and Equipment: Gas utility - 743,991 - - Less: Accumulated depreciation - 223,496 - - ---------------- ------------------- ------------- ----------------- - 520,495 - - Construction work in progress - 41,670 - - ---------------- ------------------- ------------- ----------------- - 562,165 - - ---------------- ------------------- ------------- ----------------- Deferred Debits and Other Assets: Regulatory assets - 54,765 - - Goodwill - 287,591 - - Prepaid pension - 41,204 - - Investments in subsidiary companies, at equity 520,186 - - - Other 3,687 2,336 1,827 - ---------------- ------------------- ------------- ----------------- 523,873 385,896 1,827 - ---------------- ------------------- ------------- ----------------- Total Assets $ 525,575 $ 1,068,574 $ 1,888 $ 124 ================ =================== ============= =================
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-41 YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES Consolidating Balance Sheet (a) Assets December 31, 2003 (Thousands of Dollars)
Yankee Yankee Energy Energy R.M. Financial Services Services Services Company Company Eliminations Consolidated ----------- ------------ ------------- --------------- --------------- ASSETS ------ Current Assets: Cash $ - $ 444 $ - $ - $ 1,378 Receivables, net 5,186 - - - 56,799 Accounts receivable from affiliated companies 2 - 173 751 8,135 Unbilled revenues - - - - 16,051 Taxes receivable - 301 - 325 - Notes receivable from affiliated companies - 100 - 1,800 - Fuel, materials, and supplies, at average cost - - - - 33,541 Derivative assets - - - - 2,962 Prepayments and other 11 - 498 - 7,373 ----------- ------------ ------------- --------------- --------------- 5,199 845 671 2,876 126,239 ----------- ------------ ------------- --------------- --------------- Property, Plant and Equipment: Gas utility - - - - 743,991 Less: Accumulated depreciation - - - - 223,496 ----------- ------------ ------------- --------------- --------------- - - - - 520,495 Construction work in progress - - - - 41,670 ----------- ------------ ------------- --------------- --------------- - - - - 562,165 ----------- ------------ ------------- --------------- --------------- Deferred Debits and Other Assets: Regulatory assets - - - - 54,765 Goodwill - - - - 287,591 Prepaid pension - - - - 41,204 Investments in subsidiary companies, at equity - - - 520,186 - Other 75 4,308 6,744 8,529 10,447 ----------- ------------ ------------- --------------- --------------- 75 4,308 6,744 528,715 394,007 ----------- ------------ ------------- --------------- --------------- Total Assets $ 5,274 $ 5,153 $ 7,415 $ 531,591 $ 1,082,411 =========== ============ ============= =============== ===============
F-42 YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES Consolidating Balance Sheet (a) Capitalization and Liabilities December 31, 2003 (Thousands of Dollars)
Yankee Energy Yankee Gas NorConn System, Services Properties Housatonic Inc. Company Inc. Corporation ---------------- ------------------- ------------- ----------------- LIABILITIES AND CAPITALIZATION ------------------------------ Current Liabilities: Notes payable to banks $ - $ 20,000 $ - $ - Notes payable to affiliated companies - 67,500 1,100 - Long-term debt - current portion - 950 - - Accounts payable 140 30,364 - 315 Accounts payable to affiliated companies 108 5,428 2 - Accrued taxes 135 11,327 46 - Accrued interest - 3,361 - - Derivative liabilities - 172 - - Other - 23,589 - - ---------------- ------------------- ------------- ----------------- 383 162,691 1,148 315 ---------------- ------------------- ------------- ----------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes - 97,529 301 - Accumulated deferred investment tax credits - 6,344 - - Regulatory liabilities - 111,268 - - Other 58 25,719 - - ---------------- ------------------- ------------- ----------------- 58 240,860 301 - ---------------- ------------------- ------------- ----------------- Capitalization: Long-Term Debt - 151,266 - - ---------------- ------------------- ------------- ----------------- Long-Term Debt from NU Parent - 5,000 - - ---------------- ------------------- ------------- ----------------- Common Stockholder's Equity: Common stock - 5 1 10 Capital surplus, paid in 484,616 465,723 9 2 Retained earnings/accumulated deficit 40,518 43,029 429 (203) ---------------- ------------------- ------------- ----------------- Common Stockholder's Equity 525,134 508,757 439 (191) ---------------- ------------------- ------------- ----------------- Total Capitalization 525,134 665,023 439 (191) ---------------- ------------------- ------------- ----------------- Total Liabilities and Capitalization $ 525,575 $ 1,068,574 $ 1,888 $ 124 ================ =================== ============= =================
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-43 YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES Consolidating Balance Sheet (a) Capitalization and Liabilities December 31, 2003 (Thousands of Dollars)
Yankee Yankee Energy Energy R.M. Financial Services Services Services Company Company Eliminations Consolidated ----------- ------------ ------------- --------------- --------------- LIABILITIES AND CAPITALIZATION ------------------------------ Current Liabilities: Notes payable to banks $ - $ - $ - $ - $ 20,000 Notes payable to affiliated companies 3,600 - - 1,800 70,400 Long-term debt - current portion - - - - 950 Accounts payable 43 - - - 30,863 Accounts payable to affiliated companies 9 454 - 751 5,249 Accrued taxes 71 - - 325 11,255 Accrued interest - - - - 3,361 Derivative liabilities - - - - 172 Other - 3 2,473 - 26,066 ----------- ------------- ------------- --------------- --------------- 3,723 457 2,473 2,876 168,316 ----------- ------------- ------------- --------------- --------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes - - - 8,529 89,301 Accumulated deferred investment tax credits - - - - 6,344 Regulatory liabilities - - - - 111,268 Other - 5 - - 25,782 ----------- ------------- ------------- --------------- --------------- - 5 - 8,529 232,695 ----------- ------------- ------------- --------------- --------------- Capitalization: Long-Term Debt - - - - 151,266 ----------- ------------- ------------- --------------- --------------- Long-Term Debt from NU Parent - - - - 5,000 ----------- ------------- ------------- --------------- --------------- Common Stockholder's Equity: Common stock 1 1 1 19 - Capital surplus, paid in 1,241 7,881 13,798 488,652 484,616 Retained earnings/accumulated deficit 309 (3,191) (8,857) 31,515 40,518 ----------- ------------- ------------- --------------- --------------- Common Stockholder's Equity 1,551 4,691 4,942 520,186 525,134 ----------- ------------- ------------- --------------- --------------- Total Capitalization 1,551 4,691 4,942 520,186 681,400 ----------- ------------- ------------- --------------- --------------- Total Liabilities and Capitalization $ 5,274 $ 5,153 $ 7,415 $ 531,591 $ 1,082,411 =========== ============= ============= =============== ===============
F-44 YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES Consolidating Statement of Income (a) Year Ended December 31, 2003 (Thousands of Dollars)
Yankee Energy Yankee Gas NorConn System, Services Properties, Housatonic Inc. Company Inc. Corporation --------------- --------------- ------------ --------------- Operating Revenues $ - $ 361,449 $ 196 $ - --------------- --------------- ------------ --------------- Operating Expenses: Operation- Fuel, purchased and net interchange power - 216,335 - - Other 82 61,031 6 - Maintenance - 9,256 - - Depreciation - 22,651 88 - Amortization of regulatory assets, net - 702 - - Taxes other than income taxes - 25,072 - - --------------- --------------- ------------ --------------- Total operating expenses 82 335,047 94 - --------------- --------------- ------------ --------------- Operating (Loss)/Income (82) 26,402 102 - --------------- --------------- ------------ --------------- Interest Expense: Interest on long-term debt - 12,259 8 - Other interest 3 833 14 - --------------- --------------- ------------ --------------- Interest expense, net 3 13,092 22 - --------------- --------------- ------------ --------------- Other (Loss)/Income, Net Equity in loss of subsidiaries (388) - - - Other, net 13 (2,374) 2 - --------------- --------------- ------------ --------------- Other (loss)/income, net (375) (2,374) 2 - --------------- --------------- ------------ --------------- (Loss)/Income Before Income Tax (Benefit)/Expense (460) 10,936 82 - Income Tax (Benefit)/Expense (35) 3,635 33 - --------------- --------------- ------------ --------------- (Loss)/Income before cumulative effect of accounting change, net of tax benefit $ (425) $ 7,301 $ 49 $ - Cumulative effect of accounting change, net of tax benefit - - - - --------------- --------------- ------------ --------------- Net (Loss)/Income $ (425) $ 7,301 $ 49 $ - =============== =============== ============ ===============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-45 YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES Consolidating Statement of Income (a) Year Ended December 31, 2003 (Thousands of Dollars)
Yankee Yankee Energy Energy R.M. Financial Services Services Services Company Inc. Eliminations Consolidated -------------- ------------ ------------ ------------- -------------- Operating Revenues $ 28 $ 9 $ - $ 196 $ 361,486 -------------- ------------ ------------ ------------- -------------- Operating Expenses: Operation- Fuel, purchased and net interchange power - - - - 216,335 Other 104 455 - 196 61,483 Maintenance - - - - 9,256 Depreciation 40 - - - 22,779 Amortization of regulatory assets, net - - - - 702 Taxes other than income taxes - - - - 25,072 -------------- ------------ ------------ ------------- -------------- Total operating expenses 144 455 - 196 335,627 -------------- ------------ ------------ ------------- -------------- Operating (Loss)/Income (116) (446) - - 25,859 -------------- ------------ ------------ ------------- -------------- Interest Expense: Interest on long-term debt - - - - 12,267 Other interest 37 4 - 6 885 -------------- ------------ ------------ ------------- -------------- Interest expense, net 37 4 - 6 13,152 -------------- ------------ ------------ ------------- -------------- Other (Loss)/Income, Net Equity in loss of subsidiaries - - - (388) - Other, net 326 3 (4,312) 6 (6,348) -------------- ------------ ------------ ------------- -------------- Other (loss)/income, net 326 3 (4,312) (382) (6,348) -------------- ------------ ------------ ------------- -------------- (Loss)/Income Before Income Tax (Benefit)/Expense 173 (447) (4,312) (388) 6,359 Income Tax (Benefit)/Expense 99 (179) (1,509) - 2,043 -------------- ------------ ------------ ------------- -------------- (Loss)/Income before cumulative effect of accounting change, net of tax benefit $ 74 $ (268) $ (2,803) $ (388) $ 4,316 Cumulative effect of accounting change, net of tax benefit - - (4,741) - (4,741) -------------- ------------ ------------ ------------- -------------- Net (Loss)/Income $ 74 $ (268) $ (7,544) $ (388) $ (425) ============== ============ ============ ============= ==============
F-46 YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES Consolidating Statement of Retained Earnings (a) Year Ended December 31, 2003 (Thousands of Dollars)
Yankee Energy Yankee Gas NorConn System, Services Properties, Housatonic Inc. Company Inc. Corporation ------------- ------------- ------------- -------------- Balance at beginning of period $ 40,943 $ 35,728 $ 380 $ (203) Additions: Net (loss)/income (425) 7,301 49 - ------------- ------------- ------------- -------------- Balance at end of period $ 40,518 $ 43,029 $ 429 $ (203) ============= ============= ============= ==============
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES Consolidating Statement of Capital Surplus, Paid In (a) Year Ended December 31, 2003 (Thousands of Dollars)
Yankee Energy Yankee Gas NorConn System, Services Properties, Housatonic Inc. Company Inc. Corporation ------------- ------------- ------------- -------------- Balance at beginning of period $ 484,769 $ 465,876 $ 9 $ 2 Allocation of benefits - ESOP (153) (153) - - ------------- ------------- ------------- -------------- Balance at end of period $ 484,616 $ 465,723 $ 9 $ 2 ============= ============= ============= ==============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-47 YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES Consolidating Statement of Retained Earnings (a) Year Ended December 31, 2003 (Thousands of Dollars)
Yankee Yankee Energy Energy R.M. Financial Services Services Services Company Inc. Eliminations Consolidated -------------- ----------- ------------ -------------- -------------- Balance at beginning of period $ 235 $ (2,923) $ (1,313) $ 31,903 $ 40,943 Additions: Net (loss)/income 74 (268) (7,544) (388) (425) -------------- ----------- ------------ -------------- -------------- Balance at end of period $ 309 $ (3,191) $ (8,857) $ 31,515 $ 40,518 ============== =========== ============ ============== ==============
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES Consolidating Statement of Capital Surplus, Paid In (a) Year Ended December 31, 2003 (Thousands of Dollars)
Yankee Yankee Energy Energy R.M. Financial Services Services Services Company Inc. Eliminations Consolidated -------------- ----------- ------------ -------------- -------------- Balance at beginning of period $ 1,241 $ 7,881 $ 13,798 $ 488,805 $ 484,769 Allocation of benefits - ESOP - - - (153) (153) -------------- ----------- ------------ -------------- -------------- Balance at end of period $ 1,241 $ 7,881 $ 13,798 $ 488,652 $ 484,616 ============== =========== ============ ============== ==============
F-48 YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES Consolidating Statement of Cash Flows (a) Year Ended December 31, 2003 (Thousands of Dollars)
Yankee Energy Yankee Gas NorConn System, Services Properties, Housatonic Inc. Company Inc. Corporation -------------- ------------- --------------- ----------------- Operating Activities: Net (loss)/income $ (425) $ 7,301 $ 49 $ - Adjustments to reconcile to net cash (used in)/provided by operating activities: Depreciation - 22,651 88 - Deferred income taxes and investment tax credits, net 32 11,740 (13) - Amortization - 702 - - Amortization of recoverable energy costs - 697 - - Prepaid pension - 2,126 - - Cumulative effect of accounting change - - - - Regulatory refunds - (13,940) - - Net other (uses)/sources of cash (283) 3,862 (88) 1 Changes in current assets and liabilities: Receivables and unbilled revenues, net 36 19,362 8 (100) Fuel, materials and supplies - (16,839) - - Other current assets (excludes cash) - (2,937) - (24) Accounts payable (59) (5,487) (33) 315 Accrued taxes 58 2,831 (29) (278) Other current liabilities (1,354) (1,504) (7) - -------------- ------------- --------------- ----------------- Net cash flows (used in)/provided by operating activities (1,995) 30,565 (25) (86) -------------- ------------- --------------- ----------------- Investing Activities: Investments in plant - (55,226) - - NU system Money Pool (lending)/borrowing (412) 1,500 1,381 - Other investment activities 1,895 - 89 - -------------- ------------- --------------- ----------------- Net cash flows provided by/(used in) investing activities 1,483 (53,726) 1,470 - -------------- ------------- --------------- ----------------- Financing Activities: Increase in short-term debt - 20,000 - - Reacquisitions and retirements of long-term debt - (950) (1,400) - Advance from NU parent - 5,000 - - Cash dividends on common stock - - - - -------------- ------------- --------------- ----------------- Net cash flows provided by/(used in) financing activities - 24,050 (1,400) - -------------- ------------- --------------- ----------------- Net (decrease)/increase in cash for the year (512) 889 45 (86) Cash - beginning of year 512 - - 86 -------------- ------------- --------------- ----------------- Cash - end of year $ - $ 889 $ 45 $ - ============== ============= =============== ================= Supplemental Cash Flow Information: Cash paid/(refunded) during the year for: Interest, net of amounts capitalized $ 3 $ 13,037 $ 29 $ - ============== ============= =============== ================= Income taxes $ 16 $ (9,848) $ 74 $ 283 ============== ============= =============== =================
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-49 YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES Consolidating Statement of Cash Flows (a) Year Ended December 31, 2003 (Thousands of Dollars)
Yankee Yankee Energy Energy R.M. Financial Services Services Services Company Inc. Eliminations Consolidated ------------- ------------ ------------- ------------- ------------- Operating Activities: Net (loss)/income $ 74 $ (268) $ (2,803) $ (388) $ 4,316 Adjustments to reconcile to net cash (used in)/provided by operating activities: Depreciation 40 - - - 22,779 Deferred income taxes and investment tax credits, net 13 170 (1,509) - 10,433 Amortization - - - - 702 Amortization of recoverable energy costs - - - - 697 Prepaid pension - - - - 2,126 Cumulative effect of accounting change - - (4,741) - (4,741) Regulatory refunds - - - - (13,940) Net other (uses)/sources of cash (20) - (3,267) (153) 357 Changes in current assets and liabilities: Receivables and unbilled revenues, net (586) 454 - 401 18,774 Fuel, materials and supplies - - - - (16,839) Other current assets (excludes cash) (1) (113) (498) (137) (3,437) Accounts payable (38) (34) - (401) (4,935) Accrued taxes 53 - - 137 2,499 Other current liabilities - (4) 2,473 (1,354) 959 ------------- ------------ ------------- ------------- ------------- Net cash flows (used in)/provided by operating activities (465) 205 (10,345) (1,895) 19,750 ------------- ------------ ------------- ------------- ------------- Investing Activities: Investments in plant - - - - (55,226) NU system Money Pool (lending)/borrowing 400 (869) - - 2,000 Other investment activities 21 1,108 10,345 1,895 11,562 ------------- ------------ ------------- ------------- ------------- Net cash flows provided by/(used in) investing activities 421 239 10,345 1,895 (41,664) ------------- ------------ ------------- ------------- ------------- Financing Activities: Increase in short-term debt - - - - 20,000 Reacquisitions and retirements of long-term debt - - - - (2,350) Advance from NU parent - - - - 5,000 Cash dividends on common stock - - - - - ------------- ------------ ------------- ------------- ------------- Net cash flows provided by/(used in) financing activities - - - - 22,650 ------------- ------------ ------------- ------------- ------------- Net (decrease)/increase in cash for the year (44) 444 - - 736 Cash - beginning of year 44 - - - 642 ------------- ------------ ------------- ------------- ------------- Cash - end of year $ - $ 444 $ - $ - $ 1,378 ============= ============ ============= ============= ============= Supplemental Cash Flow Information: Cash paid/(refunded) during the year for: Interest, net of amounts capitalized $ 37 $ 4 $ - $ 6 $ 13,104 ============= ============ ============= ============= ============= Income taxes $ 32 $ (541) $ - $ - $ (9,984) ============= ============ ============= ============= =============
F-50 NU ENTERPRISES, INC. AND SUBSIDIARIES Consolidating Balance Sheet (a) Assets December 31, 2003 (Thousands of Dollars)
Northeast Generation Services Select NU Northeast Company Energy, Inc. Mode 1 Enterprises, Generation (consolidated) (consolidated) Communications, Inc. Company (b) (b) Inc. --------------- ------------ --------------- ---------------- ----------------- ASSETS Current Assets: Cash $ - $ 12,863 $ 1,227 $ 906 $ - Unrestricted cash from counterparties - - - 46,496 - Special deposits - - - 17,005 - Receivables, net 1,200 - 18,206 388,860 - Accounts receivable from affiliated companies - 12,988 3,851 161,803 - Unbilled revenues - - 4,647 48,703 - Taxes receivable 88 - - 25,975 1,554 Notes receivable from affiliated companies 16,500 10,000 - - 3,600 Fuel, materials, and supplies, at average cost - 2,311 269 - - Derivative assets - - - 181,352 - Prepaid option premiums - - - 16,742 - Prepayments and other 10 749 965 27,234 - --------------- ------------ --------------- ---------------- ----------------- 17,798 38,911 29,165 915,076 5,154 --------------- ------------ --------------- ---------------- ----------------- Property, Plant and Equipment: Competitive energy - 821,230 4,382 14,846 1,025 Less: Accumulated depreciation - 29,290 1,493 12,148 135 --------------- ------------ --------------- ---------------- ----------------- - 791,940 2,889 2,698 890 Construction work in progress - 11,620 667 6,167 - --------------- ------------ --------------- ---------------- ----------------- - 803,560 3,556 8,865 890 --------------- ------------ --------------- ---------------- ----------------- Deferred Debits and Other Assets: Accumulated deferred income taxes 996 - - - 559 Goodwill - - 10,182 3,200 - Purchased intangible assets, net - - 4,480 14,426 - Prepaid pension - - 975 395 - Investments in subsidiary companies, at equity 1,250,443 - - - - Long-term accounts receivable - - - 6,194 - Long-term contracts asset - - - 39,339 - Other 7,500 38,939 1,649 - 9,861 --------------- ------------ --------------- ---------------- ----------------- 1,258,939 38,939 17,286 63,554 10,420 --------------- ------------ --------------- ---------------- ----------------- Total Assets $ 1,276,737 $ 881,410 $ 50,007 $ 987,495 $ 16,464 =============== ============ =============== ================ =================
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. (b) See supporting statements. F-51 NU ENTERPRISES, INC. AND SUBSIDIARIES Consolidating Balance Sheet (a) Assets December 31, 2003 (Thousands of Dollars)
Select Energy Services, Inc. (consolidated) Woods Network (b) Services, Inc. Eliminations Consolidated -------------- -------------- -------------- ------------- ASSETS Current Assets: Cash $ 1,524 $ 401 $ - $ 16,921 Unrestricted cash from counterparties - - - 46,496 Special deposits 32,011 - - 49,016 Receivables, net 27,391 1,884 - 437,541 Accounts receivable from affiliated companies - - 15,700 162,942 Unbilled revenues - - - 53,349 Taxes receivable - - 671 26,945 Notes receivable from affiliated companies - 500 30,600 - Fuel, materials, and supplies, at average cost 330 177 - 3,087 Derivative assets - - - 181,352 Prepaid option premiums - - 16,742 - Prepayments and other 3,542 - (16,742) 49,243 -------------- -------------- -------------- ------------- 64,798 2,962 46,971 1,026,892 -------------- -------------- -------------- ------------- Property, Plant and Equipment: Competitive energy 7,572 146 - 849,202 Less: Accumulated depreciation 4,707 39 - 47,810 -------------- -------------- -------------- ------------- 2,865 107 - 801,392 Construction work in progress - - - 18,453 -------------- -------------- -------------- ------------- 2,865 107 - 819,845 -------------- -------------- -------------- ------------- Deferred Debits and Other Assets: Accumulated deferred income taxes - - 1,556 - Goodwill 17,973 1,041 - 32,395 Purchased intangible assets, net - 4,050 - 22,956 Prepaid pension - - - 1,370 Investments in subsidiary companies, at equity - - 1,250,443 - Long-term accounts receivable - - 6,194 - Long-term contracts asset - - 39,339 - Other 98,410 - (52,486) 208,845 -------------- -------------- -------------- ------------- 116,383 5,091 1,245,046 265,566 -------------- -------------- -------------- ------------- Total Assets $ 184,046 $ 8,160 $ 1,292,017 $ 2,112,303 ============== ============== ============== =============
F-52 NU ENTERPRISES, INC. AND SUBSIDIARIES Consolidating Balance Sheet (a) Capitalization and Liabilities December 31, 2003 (Thousands of Dollars)
Northeast Generation Services Select NU Northeast Company Energy, Inc. Mode 1 Enterprises, Generation (consolidated) (consolidated) Communications, Inc. Company (b) (b) Inc. --------------- ------------ --------------- ---------------- ----------------- LIABILITIES AND CAPITALIZATION Current Liabilities: Notes payable to affiliated companies $ - $ - $ 11,300 $ 52,200 $ - Long-term debt - current portion - 31,500 - - - Accounts payable 53 2,266 8,078 479,041 264 Accounts payable to affiliated companies 72 1,274 3,301 20,925 13 Accrued taxes - 446 22 - - Accrued interest - 6,783 - 27 - Derivative liabilities - - - 104,961 - Unearned option premiums - - - 12,244 - Other - 310 1,781 85,716 - --------------- ------------ --------------- ---------------- ----------------- 125 42,579 24,482 755,114 277 --------------- ------------ --------------- ---------------- ----------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes - 42,863 415 16,769 - Other - 19 2,361 8,711 1,536 --------------- ------------ --------------- ---------------- ----------------- - 42,882 2,776 25,480 1,536 --------------- ------------ --------------- ---------------- ----------------- Capitalization: Long-Term Debt - 357,500 - - - --------------- ------------ --------------- ---------------- ----------------- Long-Term Debt from parent companies - - 9,450 164,699 - --------------- ------------ --------------- ---------------- ----------------- Common Stockholder's Equity: Common stock - - - - - Capital surplus, paid in 1,382,880 408,095 15,455 286,224 31,857 (Accumulated deficit)/Retained earnings (130,220) 31,766 (2,143) (269,386) (17,206) Accumulated other comprehensive income/(loss) 23,952 (1,412) (13) 25,364 - --------------- ------------ --------------- ---------------- ----------------- Common Stockholder's Equity 1,276,612 438,449 13,299 42,202 14,651 --------------- ------------ --------------- ---------------- ----------------- Total Capitalization 1,276,612 795,949 22,749 206,901 14,651 --------------- ------------ --------------- ---------------- ----------------- Total Liabilities and Capitalization $ 1,276,737 $ 881,410 $ 50,007 $ 987,495 $ 16,464 =============== ============ =============== ================ =================
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. (b) See supporting statements. F-53 NU ENTERPRISES, INC. AND SUBSIDIARIES Consolidating Balance Sheet (a) Capitalization and Liabilities December 31, 2003 (Thousands of Dollars)
Select Energy Services, Inc. (consolidated) Woods Network (b) Services, Inc. Eliminations Consolidated -------------- -------------- -------------- ------------- LIABILITIES AND CAPITALIZATION Current Liabilities: Notes payable to affiliated companies $ 1,250 $ - $ 30,600 $ 34,150 Long-term debt - current portion 7,033 - - 38,533 Accounts payable 6,725 459 - 496,886 Accounts payable to affiliated companies 2,368 25 8,420 19,558 Accrued taxes 618 12 671 427 Accrued interest 1,595 - - 8,405 Derivative liabilities - - - 104,961 Unearned option premiums - - 12,245 - Other 10,144 24 (12,245) 110,219 -------------- -------------- -------------- ------------- 29,733 520 39,691 813,139 -------------- -------------- -------------- ------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 759 161 1,556 59,411 Other - 19 327 12,320 -------------- -------------- -------------- ------------- 759 180 1,883 71,731 -------------- -------------- -------------- ------------- Capitalization: Long-Term Debt 118,019 - - 475,518 -------------- -------------- -------------- ------------- Long-Term Debt from parent companies - 4,400 250 178,299 -------------- -------------- -------------- ------------- Common Stockholder's Equity: Common stock - - 1 - Capital surplus, paid in 25,029 2,650 1,472,293 679,897 (Accumulated deficit)/Retained earnings 10,506 410 (246,053) (130,220) Accumulated other comprehensive income/(loss) - - 23,952 23,939 -------------- -------------- -------------- ------------- Common Stockholder's Equity 35,535 3,060 1,250,193 573,616 -------------- -------------- -------------- ------------- Total Capitalization 153,554 7,460 1,250,443 1,227,433 -------------- -------------- -------------- ------------- Total Liabilities and Capitalization $ 184,046 $ 8,160 $ 1,292,017 $ 2,112,303 ============== ============== ============== =============
F-54 NU ENTERPRISES, INC. AND SUBSIDIARIES Consolidating Statement of Income (a) Year Ended December 31, 2003 (Thousands of Dollars)
Northeast Generation Services Select NU Northeast Company Energy, Inc. Enterprises, Generation (consolidated) (consolidated) Inc. Company (b) (b) ---------------- --------------- ------------- -------------- Operating Revenues $ - $ 143,814 $ 102,354 $ 2,344,593 ---------------- --------------- ------------- -------------- Operating Expenses: Operation- Fuel, purchased and net interchange power - - 2,089 2,308,173 Other 760 13,621 46,356 81,140 Maintenance - 12,374 54,588 6 Depreciation - 9,784 551 8,012 Amortization - - 39 3,710 Taxes other than income taxes 7 9,391 1,816 3,444 ---------------- --------------- ------------- -------------- Total operating expenses 767 45,170 105,439 2,404,485 ---------------- --------------- ------------- -------------- Operating (Loss)/Income (767) 98,644 (3,085) (59,892) ---------------- --------------- ------------- -------------- Interest Expense: Interest on long-term debt - 33,187 - - Other interest 3 108 917 8,911 ---------------- --------------- ------------- -------------- Interest expense, net 3 33,295 917 8,911 ---------------- --------------- ------------- -------------- Other (Loss)/Income, Net Equity in loss of subsidiaries (2,343) - - - Other, net 34 478 821 (1,174) ---------------- --------------- ------------- -------------- Other (loss)/income, net (2,309) 478 821 (1,174) ---------------- --------------- ------------- -------------- (Loss)/Income Before Income Tax (Benefit)/Expense (3,079) 65,827 (3,181) (69,977) Income Tax (Benefit)/Expense (304) 27,320 (1,029) (26,372) ---------------- --------------- ------------- -------------- Net (Loss)/Income $ (2,775) $ 38,507 $ (2,152) $ (43,605) ================ =============== ============= ==============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. (b) See supporting statements. F-55 NU ENTERPRISES, INC. AND SUBSIDIARIES Consolidating Statement of Income (a) Year Ended December 31, 2003 (Thousands of Dollars)
Select Energy Mode 1 Services, Inc. Communications, (consolidated) Woods Network Inc. (b) Services, Inc. Eliminations Consolidated --------------- -------------- -------------- ------------ ------------ Operating Revenues $ 194 $ 150,217 $ 16,474 $ 171,291 $ 2,586,355 ---------------- -------------- -------------- ------------ ------------ Operating Expenses: Operation- Fuel, purchased and net interchange power - - - 143,474 2,166,788 Other 129 138,674 1,339 15,452 266,568 Maintenance - 621 14,382 12,365 69,606 Depreciation 38 1,294 47 4,406 15,320 Amortization - - - - 3,749 Taxes other than income taxes 27 2,681 82 - 17,448 ---------------- -------------- -------------- ------------ ------------ Total operating expenses 194 143,270 15,850 175,697 2,539,479 ---------------- -------------- -------------- ------------ ------------ Operating (Loss)/Income - 6,947 624 (4,406) 46,876 ---------------- -------------- -------------- ------------ ------------ Interest Expense: Interest on long-term debt - - - - 33,187 Other interest 1 5,941 300 - 16,180 ---------------- -------------- -------------- ------------ ------------ Interest expense, net 1 5,941 300 - 49,367 ---------------- -------------- -------------- ------------ ------------ Other (Loss)/Income, Net Equity in loss of subsidiaries - - - (2,343) - Other, net 10 6,585 (1) 4,406 2,347 ---------------- -------------- -------------- ------------ ------------ Other (loss)/income, net 10 6,585 (1) 2,063 2,347 ---------------- -------------- -------------- ------------ ------------ (Loss)/Income Before Income Tax (Benefit)/Expense 9 7,591 323 (2,343) (144) Income Tax (Benefit)/Expense (139) 3,019 136 - 2,631 ---------------- -------------- -------------- ------------ ------------ Net (Loss)/Income $ 148 $ 4,572 $ 187 $ (2,343) $ (2,775) ================ ============== ============== ============ ============
F-56 NU ENTERPRISES, INC. AND SUBSIDIARIES Consolidating Statement of Retained Earnings (a) Year Ended December 31, 2003 (Thousands of Dollars)
Northeast Generation Services Select NU Northeast Company Energy, Inc. Enterprises, Generation (consolidated) (consolidated) Inc. Company (b) (b) --------------- ------------- ------------- ----------------- Balance at beginning of period $ (127,445) $ 32,259 $ 9 $ (225,781) Additions: Net (loss)/income (2,775) 38,507 (2,152) (43,605) --------------- ------------- ------------- ----------------- (130,220) 70,766 (2,143) (269,386) --------------- ------------- ------------- ----------------- Deductions: Dividends declared: Common stock $6,500,000 per share - 39,000 - - --------------- ------------- ------------- ----------------- - 39,000 - - --------------- ------------- ------------- ----------------- Balance at end of period $ (130,220) $ 31,766 $ (2,143) $ (269,386) =============== ============= ============= =================
NU ENTERPRISES, INC. AND SUBSIDIARIES Consolidating Statement of Capital Surplus, Paid In (a) Year Ended December 31, 2003 (Thousands of Dollars)
Northeast Generation Services Select NU Northeast Company Energy, Inc. Enterprises, Generation (consolidated) (consolidated) Inc. Company (b) (b) --------------- ------------- ------------- ----------------- Balance at beginning of period $ 1,365,959 $ 408,098 $ 15,549 $ 249,337 Capital contributions from: NU Enterprises, Inc. - - - 37,000 Northeast Utilities 17,200 - - - Allocation of benefits - ESOP (279) (3) (94) (113) --------------- ------------- ------------- ----------------- Balance at end of period $ 1,382,880 $ 408,095 $ 15,455 $ 286,224 =============== ============= ============= =================
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. (b) See supporting statements. F-57 NU ENTERPRISES, INC. AND SUBSIDIARIES Consolidating Statement of Retained Earnings (a) Year Ended December 31, 2003 (Thousands of Dollars)
Select Energy Mode 1 Services, Inc. Communications, (consolidated) Woods Network Inc. (b) Services, Inc. Eliminations Consolidated --------------- -------------- -------------- ------------ ------------ Balance at beginning of period $ (17,354) $ 5,934 $ 223 $ (204,710) $ (127,445) Additions: Net (loss)/income 148 4,572 187 (2,343) (2,775) --------------- -------------- -------------- ------------ ------------ (17,206) 10,506 410 (207,053) (130,220) --------------- -------------- -------------- ------------ ------------ Deductions: Dividends declared: Common stock $6,500,000 per share - - - 39,000 - --------------- -------------- -------------- ------------ ------------ - - - 39,000 - --------------- -------------- -------------- ------------ ------------ Balance at end of period $ (17,206) $ 10,506 $ 410 $ (246,053) $ (130,220) =============== ============== ============== ============ ============
NU ENTERPRISES, INC. AND SUBSIDIARIES Consolidating Statement of Capital Surplus, Paid In (a) Year Ended December 31, 2003 (Thousands of Dollars)
Select Energy Mode 1 Services, Inc. Communications, (consolidated) Woods Network Inc. (b) Services, Inc. Eliminations Consolidated --------------- -------------- -------------- ------------ ------------ Balance at beginning of period $ 29,357 $ 25,096 $ 2,650 $ 1,433,070 $ 662,976 Capital contributions from: NU Enterprises, Inc. 2,500 - - 39,500 - Northeast Utilities - - - - 17,200 Allocation of benefits - ESOP - (67) - (277) (279) --------------- -------------- -------------- ------------ ------------ Balance at end of period $ 31,857 $ 25,029 $ 2,650 $ 1,472,293 $ 679,897 =============== ============== ============== ============ ============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. (b) See supporting statements. F-58 NU ENTERPRISES, INC. AND SUBSIDIARIES Consolidating Statement of Cash Flows (a) Year Ended December 31, 2003 (Thousands of Dollars)
Northeast Generation Services NU Northeast Company Enterprises, Generation (consolidated) Inc. Company (b) -------------------- -------------------- ------------------- Operating Activities: Net (loss)/income $ (2,775) $ 38,507 $ (2,152) Adjustments to reconcile to net cash provided by/(used in) operating activities: Depreciation - 9,784 551 Deferred income taxes and investment tax credits, net - 21,681 735 Amortization - - 39 Prepaid pension - - (49) Net other (uses)/sources of cash (270) 685 (254) Changes in current assets and liabilities: Unrestricted cash from counterparties - - - Receivables and unbilled revenues, net (1,200) 577 (709) Fuel, materials and supplies - (147) 53 Other current assets (excludes cash) (25) 1,618 1,723 Accounts payable 86 262 2,123 Accrued taxes - (447) 22 Other current liabilities 13,256 (195) (83) -------------------- -------------------- ------------------- Net cash flows provided by/(used in) operating activities 9,072 72,325 1,999 -------------------- -------------------- ------------------- Investing Activities: Investments in plant: Electric, gas and other utility plant - - - Competitive energy assets - (11,133) - -------------------- -------------------- ------------------- Cash flows used for investments in plant - (11,133) - NU system Money Pool lending (15,200) - (2,200) Other investment activities (11,136) (577) (829) -------------------- -------------------- ------------------- Net cash flows used in investing activities (26,336) (11,710) (3,029) -------------------- -------------------- ------------------- Financing Activities: Issuance of long-term debt - - - Reacquisitions and retirements of long-term debt - (27,000) - Advances from parent - - - Cash dividends on common shares - (39,000) - Capital contributions 17,200 - - -------------------- -------------------- ------------------- Net cash flows provided by/(used in) financing activities 17,200 (66,000) - -------------------- -------------------- ------------------- Net (decrease)/increase in cash for the year (64) (5,385) (1,030) Cash - beginning of year 64 18,248 2,257 -------------------- -------------------- ------------------- Cash - end of year $ - $ 12,863 $ 1,227 ==================== ==================== =================== Supplemental Cash Flow Information: Cash paid/(refunded) during the year for: Interest, net of amounts capitalized $ - $ 34,261 $ 895 ==================== ==================== =================== Income taxes $ (282) $ 5,608 $ (3,705) ==================== ==================== ===================
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. (b) See supporting statements. F-59 NU ENTERPRISES, INC. AND SUBSIDIARIES Consolidating Statement of Cash Flows (a) Year Ended December 31, 2003 (Thousands of Dollars)
Select Select Energy Woods Energy, Inc. Mode 1 Services, Inc. Network (consolidated) Communications, (consolidated) Services, (b) Inc. (b) Inc. Eliminations Consolidated -------------- --------------- -------------- --------- ------------ ------------ Operating Activities: Net (loss)/income $ (43,605) $ 148 $ 4,572 $ 187 $ (2,343) $ (2,775) Adjustments to reconcile to net cash provided by/(used in) operating activities: Depreciation 8,012 38 1,294 47 4,406 15,320 Deferred income taxes and investment tax credits, net (16,752) 5,619 65 161 - 11,510 Amortization 3,710 - - - - 3,749 Prepaid pension 1,489 - - - - 1,440 Net other (uses)/sources of cash (9,425) (193) (44,681) (607) (8,393) (46,355) Changes in current assets and liabilities: Unrestricted cash from counterparties (29,606) - - - - (29,606) Receivables and unbilled revenues, net (32,134) 11 (7,676) 699 (1,434) (38,997) Fuel, materials and supplies - - 1 (125) - (217) Other current assets (excludes cash) (42,912) (111) (1,850) 4 3,118 (44,671) Accounts payable 69,846 (549) 2,418 (278) 5,144 68,764 Accrued taxes (22,245) - 268 (102) (3,118) (19,386) Other current liabilities 94,560 (1) 3,976 (15) 13,256 98,243 -------------- --------------- -------------- --------- ------------ ------------ Net cash flows provided by/(used in) operating activities (19,062) 4,962 (41,613) (29) 10,636 17,019 -------------- --------------- -------------- --------- ------------ ------------ Investing Activities: Investments in plant: Electric, gas and other utility plant - (1) - - - (1) Competitive energy assets (3,765) - (990) - - (15,888) -------------- --------------- -------------- --------- ------------ ------------ Cash flows used for investments in plant (3,765) (1) (990) - - (15,889) NU system Money Pool lending (165,000) (2,600) (5,200) (500) - (190,700) Other investment activities - (4,861) (3,750) - (11,136) (10,017) -------------- --------------- -------------- --------- ------------ ------------ Net cash flows used in investing activities (168,765) (7,462) (9,940) (500) (11,136) (216,606) -------------- --------------- -------------- --------- ------------ ------------ Financing Activities: Issuance of long-term debt - - 63,368 - - 63,368 Reacquisitions and retirements of long-term debt - - (10,955) - - (37,956) Advances from parent 144,000 - - - - 144,000 Cash dividends on common shares - - - - (39,000) - Capital contributions 37,000 2,500 - - 39,500 17,200 -------------- --------------- -------------- --------- ------------ ------------ Net cash flows provided by/(used in) financing activities 181,000 2,500 52,413 - 500 186,612 -------------- --------------- -------------- --------- ------------ ------------ Net (decrease)/increase in cash for the year (6,827) - 860 (529) - (12,975) Cash - beginning of year 7,733 - 664 930 - 29,896 -------------- --------------- -------------- --------- ------------ ------------ Cash - end of year $ 906 $ - $ 1,524 $ 401 $ - $ 16,921 ============== =============== ============== ========= ============ ============ Supplemental Cash Flow Information: Cash paid/(refunded) during the year for: Interest, net of amounts capitalized $ 8,511 $ - $ (788) $ 300 $ - $ 43,179 ============== =============== ============== ========= ============ ============ Income taxes $ 36,307 $ (5,646) $ 2,793 $ (25) $ - $ 35,048 ============== =============== ============== ========= ============ ============
F-60 NORTHEAST GENERATION SERVICES COMPANY AND SUBSIDIARIES Consolidating Balance Sheet (a) Assets December 31, 2003 (Thousands of Dollars)
Northeast Woods Generation NGS E. S. Boulos Electrical Services Company Mechanical, Inc. Company Co., Inc. ---------------- --------------- ----------- ----------- ASSETS ------ Current Assets: Cash $ 527 $ 10 $ 691 $ - Receivables, net 5,833 - 8,599 3,774 Accounts receivable from affiliated companies 3,869 - 294 - Unbilled revenues 1,353 - 3,014 280 Taxes receivable 557 - - - Fuel, materials, and supplies, at average cost 3 - 203 62 Prepayments and other 961 - - 5 ---------------- --------------- ------------ ----------- 13,103 10 12,801 4,121 ---------------- --------------- ------------ ----------- Property, Plant and Equipment: Competitive energy 2,997 - 1,131 254 Less: Accumulated depreciation 1,055 - 382 56 ---------------- --------------- ------------ ----------- 1,942 - 749 198 Construction work in progress 668 - - - ---------------- --------------- ------------ ----------- 2,610 - 749 198 ---------------- --------------- ------------ ----------- Deferred Debits and Other Assets: Accumulated deferred income taxes 156 - - - Goodwill - - 6,963 3,218 Purchased intangible assets, net - - 30 4,450 Prepaid pension 975 - - - Investments in subsidiary companies, at equity 20,710 - - - Other 1,604 - 45 - ---------------- --------------- ------------ ----------- 23,445 - 7,038 7,668 ---------------- --------------- ------------ ----------- Total Assets $ 39,158 $ 10 $ 20,588 $ 11,987 ================ =============== ============ =========== Eliminations Consolidated ------------- -------------- ASSETS ------ Current Assets: Cash $ - $ 1,227 Receivables, net - 18,206 Accounts receivable from affiliated companies 312 3,851 Unbilled revenues - 4,647 Taxes receivable 557 - Fuel, materials, and supplies, at average cost - 269 Prepayments and other - 965 ----------- -------------- 869 29,165 ----------- -------------- Property, Plant and Equipment: Competitive energy - 4,382 Less: Accumulated depreciation - 1,493 ----------- -------------- - 2,889 Construction work in progress - 667 ----------- -------------- - 3,556 ----------- -------------- Deferred Debits and Other Assets: Accumulated deferred income taxes 156 - Goodwill - 10,182 Purchased intangible assets, net - 4,480 Prepaid pension - 975 Investments in subsidiary companies, at equity 20,710 - Other - 1,649 ----------- --------------- 20,866 17,286 ----------- --------------- Total Assets $ 21,735 $ 50,007 =========== ===============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-61 NORTHEAST GENERATION SERVICES COMPANY AND SUBSIDIARIES Consolidating Balance Sheet (a) Capitalization and Liabilities December 31, 2003 (Thousands of Dollars)
Northeast Woods Generation NGS E. S. Boulos Electrical Services Company Mechanical, Inc. Company Co., Inc. Eliminations Consolidated ---------------- ---------------- ---------- ----------- ------------ ------------ LIABILITIES AND CAPITALIZATION ------------------------------ Current Liabilities: Notes payable to affiliated companies $ 10,500 $ - $ - $ 800 $ - $ 11,300 Advance from parent, non-interest bearing - - 2,948 250 3,198 - Accounts payable 4,934 - 1,943 1,200 - 8,078 Accounts payable to affiliated companies 2,701 2 855 55 312 3,301 Accrued taxes - - 424 156 557 22 Other 1,532 - 198 51 - 1,781 ----------------- --------------- ------------ ----------- ------------ ------------ 19,667 2 6,368 2,512 4,067 24,482 ----------------- --------------- ------------ ----------- ------------ ------------ Deferred Credits and Other Liabilities: Accumulated deferred income taxes - - 348 223 156 415 Other 1,192 - 850 319 - 2,361 ----------------- --------------- ------------ ----------- ------------ ------------ 1,192 - 1,198 542 156 2,776 ----------------- --------------- ------------ ----------- ------------ ------------ Capitalization: Long-Term Debt from NU Parent 5,000 - - 4,450 - 9,450 ----------------- --------------- ------------ ----------- ------------ ------------ Common Stockholder's Equity: Common stock - - - - - - Capital surplus, paid in 15,455 10 7,539 5,000 12,549 15,455 (Accumulated deficit)/Retained earnings (2,143) (2) 5,483 (517) 4,963 (2,143) Accumulated other comprehensive loss (13) - - - - (13) ----------------- --------------- ------------ ----------- ------------ ------------ Common Stockholder's Equity 13,299 8 13,022 4,483 17,512 13,299 ----------------- --------------- ------------ ----------- ------------ ------------ Total Capitalization 18,299 8 13,022 8,933 17,512 22,749 ----------------- --------------- ------------ ----------- ------------ ------------ Total Liabilities and Capitalization $ 39,158 $ 10 $ 20,588 $ 11,987 $ 21,735 $ 50,007 ================= =============== ============ =========== ============ ============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-62 NORTHEAST GENERATION SERVICES COMPANY AND SUBSIDIARIES Consolidating Statement of Income (a) Year Ended December 31, 2003 (Thousands of Dollars)
Northeast Woods Generation NGS E. S. Boulos Electrical Services Company Mechanical, Inc. Company Co., Inc. ------------------- ------------------ --------------- -------------- Operating Revenues $ 58,538 $ - $ 34,773 $ 9,459 ------------------- ------------------ --------------- --------------- Operating Expenses: Operation- Fuel, purchased and net interchange power 2,089 - - - Other 44,027 - 1,255 1,490 Maintenance 12,188 - 34,215 8,185 Depreciation 229 - 178 144 Amortization 39 - - - Taxes other than income taxes 1,761 - 55 - ------------------- ------------------ --------------- --------------- Total operating expenses 60,333 - 35,703 9,819 ------------------- ------------------ --------------- --------------- Operating Loss (1,795) - (930) (360) ------------------- ------------------ --------------- --------------- Interest Expense, net 591 - - 326 ------------------- ------------------ --------------- --------------- Other (Loss)/Income, Net Equity in loss of subsidiaries (1,047) - - - Other, net 749 - 68 3 ------------------- ------------------ --------------- --------------- Other (loss)/income, net (298) - 68 3 ------------------- ------------------ --------------- --------------- Loss Before Income Tax Benefit (2,684) - (862) (683) Income Tax Benefit (532) - (224) (274) ------------------- ------------------ --------------- --------------- Net Loss $ (2,152) $ - $ (638) $ (409) =================== ================== =============== =============== Eliminations Consolidated ------------- --------------- Operating Revenues $ 416 $ 102,354 ------------- --------------- Operating Expenses: Operation- Fuel, purchased and net interchange power - 2,089 Other 416 46,356 Maintenance - 54,588 Depreciation - 551 Amortization - 39 Taxes other than income taxes - 1,816 ------------- --------------- Total operating expenses 416 105,439 ------------- --------------- Operating Loss - (3,085) ------------- --------------- Interest Expense, net - 917 ------------- --------------- Other (Loss)/Income, Net Equity in loss of subsidiaries (1,047) - Other, net - 821 ------------- --------------- Other (loss)/income, net (1,047) 821 ------------- --------------- Loss Before Income Tax Benefit (1,047) (3,181) Income Tax Benefit - (1,029) ------------- --------------- Net Loss $ (1,047) $ (2,152) ============= ===============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-63 NORTHEAST GENERATION SERVICES COMPANY AND SUBSIDIARIES Consolidating Statement of Retained Earnings (a) Year Ended December 31, 2003 (Thousands of Dollars)
Northeast Woods Generation NGS E. S. Boulos Electrical Services Company Mechanical Inc. Company Co., Inc Eliminations Consolidated ------------------- ---------------- --------------- -------------- ------------- ------------- Balance at beginning of period $ 9 $ (2) $ 6,121 $ (108) $ 6,010 $ 9 Additions: Net loss (2,152) - (638) (409) (1,047) (2,152) ------------------ --------------- --------------- -------------- ------------- ------------- Balance at end of period $ (2,143) $ (2) $ 5,483 $ (517) $ 4,963 $ (2,143) =================== =============== =============== ============== ============= =============
NORTHEAST GENERATION SERVICES COMPANY AND SUBSIDIARIES Consolidating Statement of Capital Surplus, Paid In (a) Year Ended December 31, 2003 (Thousands of Dollars)
Northeast Woods Generation NGS E. S. Boulos Electrical Services Company Mechanical Inc. Company Co., Inc Eliminations Consolidated ------------------- ---------------- --------------- -------------- ------------- -------------- Balance at beginning of period $ 15,549 $ 10 $ 7,539 $ 5,000 $ 12,549 $ 15,549 Allocation of benefits - ESOP (94) - - - - (94) ------------------ ---------------- --------------- -------------- ------------- -------------- Balance at end of period $ 15,455 $ 10 $ 7,539 $ 5,000 $ 12,549 $ 15,455 ================== ================ =============== ============== ============= ==============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-64 NORTHEAST GENERATION SERVICES COMPANY AND SUBSIDIARIES Consolidating Statement of Cash Flows (a) Year Ended December 31, 2003 (Thousands of Dollars)
Northeast NGS Woods Generation Mechanical, E.S. Boulos Electrical, Services Company Inc. Company Inc. ---------------- ------------- ----------- ------------ Operating Activities: Net loss $ (2,152) $ - $ (638) $ (409) Adjustments to reconcile to net cash provided by/ (used in) operating activities: Depreciation 229 - 178 144 Deferred income taxes and investment tax credits, net 159 - 354 223 Amortization 39 - - - Prepaid pension (49) - - - Net other sources/(uses) of cash 351 - (780) 175 Changes in current assets and liabilities: Receivables and unbilled revenues, net 75 - 1,836 (2,605) Fuel, materials and supplies 2 - 20 32 Other current assets (excludes cash) 1,132 - - 143 Accounts payable 3,200 - (1,493) 401 Accrued taxes - - 364 156 Other current liabilities 306 - (490) 51 ---------------- -------------- ------------ ------------- Net cash flows provided by/(used in) operating activities 3,292 - (649) (1,689) ---------------- -------------- ------------ ------------- Investing Activities: NU system Money Pool (lending)/borrowing (3,000) - - 800 Other investment activities 234 - (16) ---------------- -------------- ------------ ------------- Net cash flows (used in)/provided by investing activities (2,766) - (16) 800 ---------------- -------------- ------------ ------------- Net increase/(decrease) in cash for the year 526 - (665) (889) Cash - beginning of year 1 10 1,356 890 ---------------- -------------- ------------ ------------- Cash - end of year $ 527 $ 10 $ 691 $ 1 ================ ============== ============ ============= Supplemental Cash Flow Information: Cash paid/(refunded) during the year for: Interest, net of amounts capitalized $ 569 $ - $ - $ 326 ================ ============== ============ ============= Income taxes $ (2,443) $ 1 $ (520) $ (743) ================ ============== ============ ============= Eliminations Consolidated ---------------- -------------- Operating Activities: Net loss $ (1,047) $ (2,152) Adjustments to reconcile to net cash provided by/ (used in) operating activities: Depreciation - 551 Deferred income taxes and investment tax credits, net - 735 Amortization - 39 Prepaid pension - (49) Net other sources/(uses) of cash (1) (254) Changes in current assets and liabilities: Receivables and unbilled revenues, net 14 (709) Fuel, materials and supplies - 53 Other current assets (excludes cash) (446) 1,723 Accounts payable (14) 2,123 Accrued taxes 498 22 Other current liabilities (51) (83) ---------------- -------------- Net cash flows provided by/(used in) operating activities (1,047) 1,999 ---------------- -------------- Investing Activities: NU system Money Pool (lending)/borrowing - (2,200) Other investment activities 1,047 (829) ---------------- -------------- Net cash flows (used in)/provided by investing activities 1,047 (3,029) ---------------- -------------- Net increase/(decrease) in cash for the year - (1,030) Cash - beginning of year - 2,257 ---------------- -------------- Cash - end of year $ - $ 1,227 ================= ============== Supplemental Cash Flow Information: Cash paid/(refunded) during the year for: Interest, net of amounts capitalized $ - $ 895 ================= ============== Income taxes $ - $ (3,705) ================= ==============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-65 THIS PAGE INTENTIONALLY LEFT BLANK F-66 SELECT ENERGY, INC. AND SUBSIDIARY Consolidating Balance Sheet (a) Assets December 31, 2003 (Thousands of Dollars)
Select Select Energy Energy, Inc. New York, Inc. Eliminations Consolidated ----------------- --------------- ------------ ------------- ASSETS ------ Current Assets: Cash $ - $ 906 $ - $ 906 Unrestricted cash from counterparties 39,455 7,041 - 46,496 Special deposits 12,994 4,011 - 17,005 Receivables, net 330,758 58,102 - 388,860 Accounts receivable from affiliated companies 173,878 4,024 16,099 161,803 Unbilled revenues 48,703 - - 48,703 Taxes receivable 30,944 - 4,969 25,975 Notes receivable from affiliated companies - 11,000 11,000 - Derivative assets 168,987 12,365 - 181,352 Prepaid option premiums 12,469 4,273 - 16,742 Prepayments and other 13,820 13,414 - 27,234 ----------------- --------------- ------------ ------------- 832,008 115,136 32,068 915,076 ----------------- --------------- ------------ ------------- Property, Plant and Equipment: Competitive energy 14,192 654 - 14,846 Less: Accumulated depreciation 11,779 369 - 12,148 ----------------- --------------- ------------ ------------- 2,413 285 - 2,698 Construction work in progress 6,167 - - 6,167 ----------------- --------------- ------------ ------------- 8,580 285 - 8,865 ----------------- --------------- ------------ ------------- Deferred Debits and Other Assets: Goodwill - 3,200 - 3,200 Purchased intangible assets, net 14,426 - - 14,426 Prepaid pension 1,421 - 1,026 395 Long-term accounts receivable 6,194 - - 6,194 Long-term contracts asset 39,339 - - 39,339 Investments in subsidiary company, at equity 37,999 - 37,999 - Other 100 - 100 - ----------------- --------------- ------------ ------------- 99,479 3,200 39,125 63,554 ----------------- --------------- ------------ ------------- Total Assets $ 940,067 $ 118,621 $ 71,193 $ 987,495 ================= =============== ============ =============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-67 SELECT ENERGY, INC. AND SUBSIDIARY Consolidating Balance Sheet (a) Capitalization and Liabilities December 31, 2003 (Thousands of Dollars)
Select Select Energy Energy, Inc. New York, Inc. Eliminations Consolidated ----------------- --------------- ------------ ------------- LIABILITIES AND CAPITALIZATION ------------------------------ Current Liabilities: Notes payable to affiliated companies $ 63,200 $ - $ 11,000 $ 52,200 Accounts payable 449,494 29,547 - 479,041 Accounts payable to affiliated companies 24,538 12,487 16,100 20,925 Accrued taxes - 4,969 4,969 - Accrued interest 27 - - 27 Derivative liabilities 103,161 1,800 - 104,961 Unearned option premiums 12,244 - - 12,244 Other 76,189 9,527 - 85,716 ----------------- --------------- ------------ ------------- 728,853 58,330 32,069 755,114 ----------------- --------------- ------------ ------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 10,653 6,116 - 16,769 Deferred pension costs - 1,026 1,026 - Other 8,359 451 99 8,711 ----------------- --------------- ------------ ------------- 19,012 7,593 1,125 25,480 ----------------- --------------- ------------ ------------- Capitalization: Long-Term Debt from NU Parent 150,000 14,699 - 164,699 ----------------- --------------- ------------ ------------- Common Stockholder's Equity: Common stock - 10 10 - Capital surplus, paid in 286,224 9,957 9,957 286,224 (Accumulated deficit)/Retained earnings (269,386) 22,753 22,753 (269,386) Accumulated other comprehensive income 25,364 5,279 5,279 25,364 ----------------- --------------- ------------ ------------- Common Stockholder's Equity 42,202 37,999 37,999 42,202 ----------------- --------------- ------------ ------------- Total Capitalization 192,202 52,698 37,999 206,901 ----------------- --------------- ------------ ------------- Total Liabilities and Capitalization $ 940,067 $ 118,621 $ 71,193 $ 987,495 ================= =============== ============ =============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-68 SELECT ENERGY, INC. AND SUBSIDIARY Consolidating Statement of Income (a) Year Ended December 31, 2003 (Thousands of Dollars)
Select Select Energy Energy, Inc. New York, Inc. Eliminations Consolidated ---------------- --------------- ------------ ---------------- Operating Revenues $ 2,149,828 $ 380,628 $ 185,863 $ 2,344,593 ---------------- --------------- ------------ ---------------- Operating Expenses: Operation- Purchased power, net interchange power and capacity 2,124,909 369,126 185,863 2,308,173 Other 71,800 9,341 - 81,140 Maintenance 6 - - 6 Depreciation 8,012 - - 8,012 Amortization 3,710 - - 3,710 Taxes other than income taxes 5,089 (1,645) - 3,444 ---------------- --------------- ------------ ---------------- Total operating expenses 2,213,526 376,822 185,863 2,404,485 ---------------- --------------- ------------ ---------------- Operating (Loss)/Income (63,698) 3,806 - (59,892) ---------------- --------------- ------------ ---------------- Interest Expense, Net 8,417 494 - 8,911 ---------------- --------------- ------------ ---------------- Other Income/(Loss), Net Equity in earnings of subsidiary 2,850 - 2,850 - Other, net (1,422) 248 - (1,174) ---------------- --------------- ------------ ---------------- Other income/(loss), net 1,428 248 2,850 (1,174) ---------------- --------------- ------------ ---------------- (Loss)/Income Before Income Tax (Benefit)/Expense (70,687) 3,560 2,850 (69,977) Income Tax (Benefit)/Expense (27,082) 710 - (26,372) ---------------- --------------- ------------ ---------------- Net (Loss)/Income $ (43,605) $ 2,850 $ 2,850 $ (43,605) ================ =============== ============ ================
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-69 SELECT ENERGY, INC. AND SUBSIDIARY Consolidating Statement of Retained Earnings (a) Year Ended December 31, 2003 (Thousands of Dollars)
Select Select Energy Energy, Inc. New York, Inc. Eliminations Consolidated ---------------- --------------- ------------ -------------- Balance at beginning of period $ (225,781) $ 19,903 $ 19,903 $ (225,781) Additions: Net (loss)/income (43,605) 2,850 2,850 (43,605) ---------------- --------------- ------------ -------------- Balance at end of period $ (269,386) $ 22,753 $ 22,753 $ (269,386) ================ =============== ============ ==============
SELECT ENERGY, INC. AND SUBSIDIARY Consolidating Statement of Capital Surplus, Paid In (a) Year Ended December 31, 2003 (Thousands of Dollars)
Select Select Energy Energy, Inc. New York, Inc. Eliminations Consolidated ---------------- --------------- ------------ -------------- Balance at beginning of period $ 249,337 $ 9,976 $ 9,976 $ 249,337 Capital contributions from: NU Enterprises, Inc. 37,000 - - 37,000 Allocation of benefits - ESOP (113) (19) (19) (113) ---------------- --------------- ------------ -------------- Balance at end of period $ 286,224 $ 9,957 $ 9,957 $ 286,224 ================ =============== ============ ==============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-70 SELECT ENERGY INC. AND SUBSIDIARY Consolidating Statement of Cash Flows (a) Year Ended December 31, 2003 (Thousands of Dollars)
Select Energy Select New York, Energy, Inc. Inc. Eliminations Consolidated ------------- ---------------- -------------- -------------- Operating Activities: Net (loss)/income $ (43,605) $ 2,850 $ 2,850 $ (43,605) Adjustments to reconcile to net cash (used in)/ provided by operating activities: Depreciation 8,012 - - 8,012 Deferred income taxes and investment tax credits, net (10,603) (6,149) - (16,752) Amortization 3,710 - - 3,710 Prepaid pension 836 - (652) 1,489 Net other (uses)/sources of cash (15,289) 6,497 632 (9,425) Changes in current assets and liabilities: Unrestricted cash from counterparties (26,910) (2,696) - (29,606) Receivables and unbilled revenues, net (18,641) (22,349) (8,856) (32,134) Other current assets (excludes cash) (61,159) 15,377 (2,872) (42,912) Accounts payable 66,239 12,464 8,857 69,846 Accrued taxes (19,838) 2,562 4,969 (22,245) Other current liabilities 91,813 1,618 (1,128) 94,560 ------------- ---------------- -------------- -------------- Net cash flows (used in)/provided by operating activities (25,435) 10,174 3,800 (19,062) ------------- ---------------- -------------- -------------- Investing Activities: Competitive energy assets (3,765) - - (3,765) NU system Money Pool lending (154,000) (11,000) - (165,000) Other investment activities (3,800) - (3,800) - ------------- ---------------- -------------- -------------- Net cash flows used in investing activities (161,565) (11,000) (3,800) (168,765) ------------- ---------------- -------------- -------------- Financing Activities: Advance from (repayment to) NU parent 150,000 (6,000) - 144,000 Capital contributions 37,000 - - 37,000 ------------- ---------------- -------------- -------------- Net cash flows provided by/(used in) financing activities 187,000 (6,000) - 181,000 ------------- ---------------- -------------- -------------- Net decrease in cash for the year - (6,826) - (6,827) Cash - beginning of year - 7,732 - 7,733 ------------- ---------------- -------------- -------------- Cash - end of year $ - $ 906 $ - $ 906 ============= ================ ============== ============== Supplemental Cash Flow Information: Cash paid during the year for: Interest, net of amounts capitalized $ 8,017 $ 494 $ - $ 8,511 ============= ================ ============== ============== Income taxes $ 34,911 $ 1,396 $ - $ 36,307 ============= ================ ============== ==============
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-71 THIS PAGE INTENTIONALLY LEFT BLANK F-72 SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES Consolidating Balance Sheet (a) Assets December 31, 2003 (Thousands of Dollars)
Select Energy Select Energy Reeds Ferry HEC/Tobyhanna Services, Inc. Contracting, Inc. Supply Co., Inc. Energy Project, Inc. -------------- ----------------- ---------------- -------------------- ASSETS ------ Current Assets: Cash $ 1,043 $ 475 $ 5 $ - Special deposits 27,697 - - 4,314 Receivables, net 9,121 17,502 1 766 Accounts receivable from affiliated companies 19,013 - 109 - Other material and supplies, at average cost - 330 - - Prepayments and other 2,303 1,240 - - -------------- ----------------- ---------------- --------------------- 59,177 19,547 115 5,080 -------------- ----------------- ---------------- --------------------- Property, Plant and Equipment: Competitive energy 2,899 4,674 - - Less: Accumulated depreciation 2,038 2,669 - - -------------- ----------------- ---------------- --------------------- 861 2,005 - - -------------- ----------------- ---------------- --------------------- Deferred Debits and Other Assets: Goodwill 505 17,220 247 - Investments in subsidiary companies, at equity 22,233 - - - Other 72,715 - - 27,916 -------------- ----------------- ---------------- --------------------- 95,453 17,220 247 27,916 -------------- ----------------- ---------------- --------------------- Total Assets $ 155,491 $ 38,772 $ 362 $ 32,996 ============== ================= ================ =====================
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-73 SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES Consolidating Balance Sheet (a) Assets December 31, 2003 (Thousands of Dollars)
HEC/CJTS Energy Center LLC Eliminations Consolidated -------------- ----------------- ---------------- ASSETS ------ Current Assets: Cash $ 1 $ - $ 1,524 Special deposits - - 32,011 Receivables, net - - 27,391 Accounts receivable from affiliated companies - 19,122 - Other material and supplies, at average cost - - 330 Prepayments and other - - 3,542 -------------- ----------------- ---------------- 1 19,122 64,798 -------------- ----------------- ---------------- Property, Plant and Equipment: Competitive energy - - 7,572 Less: Accumulated depreciation - - 4,707 -------------- ----------------- ---------------- - - 2,865 -------------- ----------------- ---------------- Deferred Debits and Other Assets: Goodwill - - 17,973 Investments in subsidiary companies, at equity - 22,233 - Other - 2,220 98,410 -------------- ----------------- ---------------- - 24,453 116,383 -------------- ----------------- ---------------- Total Assets $ 1 $ 43,575 $ 184,046 ============== ================= ================
F-74 SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES Consolidating Balance Sheet (a) Capitalization and Liabilities December 31, 2003 (Thousands of Dollars)
Select Energy Select Energy Reeds Ferry HEC/Tobyhanna Services, Inc. Contracting, Inc. Supply Co., Inc. Energy Project, Inc. -------------- ----------------- ---------------- --------------------- LIABILITIES AND CAPITALIZATION ------------------------------ Current Liabilities: Notes payable to affiliated companies $ 1,250 $ 3,790 $ - $ - Long-term debt - current portion 6,456 - - 577 Accounts payable 2,696 4,029 - - Accounts payable to affiliated companies 4,804 9,172 404 7,109 Accrued taxes 355 238 - 25 Accrued interest 903 - - 693 Other 8,845 981 - 318 -------------- ----------------- ---------------- --------------------- 25,309 18,210 404 8,722 -------------- ----------------- ---------------- --------------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes - 1,276 - - Other - 1,704 - - -------------- ----------------- ---------------- --------------------- - 2,980 - - -------------- ----------------- ---------------- --------------------- Capitalization: Long-Term Debt 94,647 - - 23,372 -------------- ----------------- ---------------- --------------------- Common Stockholder's Equity: Common stock - - 4 - Capital surplus, paid in 25,029 15,080 3 - Retained earnings/(accumulated deficit) 10,506 2,502 (49) 902 -------------- ----------------- ---------------- --------------------- Common Stockholder's Equity 35,535 17,582 (42) 902 -------------- ----------------- ---------------- --------------------- Total Capitalization 130,182 17,582 (42) 24,274 -------------- ----------------- ---------------- --------------------- Total Liabilities and Capitalization $ 155,491 $ 38,772 $ 362 $ 32,996 ============== ================= ================ =====================
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-75 SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES Consolidating Balance Sheet (a) Capitalization and Liabilities December 31, 2003 (Thousands of Dollars)
HEC/CJTS Energy Center LLC Eliminations Consolidated -------------- ----------------- ---------------- LIABILITIES AND CAPITALIZATION ------------------------------ Current Liabilities: Notes payable to affiliated companies $ - $ 3,790 $ 1,250 Long-term debt - current portion - - 7,033 Accounts payable - - 6,725 Accounts payable to affiliated companies - 19,122 2,368 Accrued taxes - - 618 Accrued interest - - 1,595 Other - - 10,144 -------------- ----------------- ---------------- - 22,912 29,733 -------------- ----------------- ---------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes - 517 759 Other - 1,704 - -------------- ----------------- ---------------- - 2,221 759 -------------- ----------------- ---------------- Capitalization: Long-Term Debt - - 118,019 -------------- ----------------- ---------------- Common Stockholder's Equity: Common stock - 4 - Capital surplus, paid in 12 15,095 25,029 Retained earnings/(accumulated deficit) (11) 3,343 10,506 -------------- ----------------- ---------------- Common Stockholder's Equity 1 18,442 35,535 -------------- ----------------- ---------------- Total Capitalization 1 18,442 153,554 -------------- ----------------- ---------------- Total Liabilities and Capitalization $ 1 $ 43,575 $ 184,046 ============== ================= ================
F-76 SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES Consolidating Statement of Income (a) Year Ended December 31, 2003 (Thousands of Dollars)
Select Energy Select Energy Reeds Ferry HEC/Tobyhanna Services, Inc. Contracting, Inc. Supply Co., Inc. Energy Project, Inc. -------------- ----------------- ---------------- --------------------- Operating Revenues $ 79,647 $ 71,293 $ 1,177 $ - -------------- ----------------- ---------------- --------------------- Operating Expenses: Operation 73,522 65,874 1,177 - Maintenance 15 606 - - Depreciation 255 1,039 - - Taxes other than income taxes 529 2,152 - - -------------- ----------------- ---------------- --------------------- Total operating expenses 74,321 69,671 1,177 - -------------- ----------------- ---------------- --------------------- Operating Income 5,326 1,622 - - -------------- ----------------- ---------------- --------------------- Interest Expense, Net 3,870 179 - 1,892 -------------- ----------------- ---------------- --------------------- Other Income/(Loss), Net Equity in earnings of subsidiaries 1,040 - - - Other, net 4,344 (39) - 2,280 -------------- ----------------- ---------------- --------------------- Other income/(loss), net 5,384 (39) - 2,280 -------------- ----------------- ---------------- --------------------- Income Before Income Tax Expense 6,840 1,404 - 388 Income Tax Expense 2,268 558 - 193 -------------- ----------------- ---------------- --------------------- Net Income $ 4,572 $ 846 $ - $ 195 ============== ================= ================ =====================
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-77 SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES Consolidating Statement of Income (a) Year Ended December 31, 2003 (Thousands of Dollars)
HEC/CJTS Energy Center LLC Eliminations Consolidated -------------- ----------------- ---------------- Operating Revenues $ - $ 1,900 $ 150,217 -------------- ----------------- ---------------- Operating Expenses: Operation - 1,900 138,674 Maintenance - - 621 Depreciation - - 1,294 Taxes other than income taxes - - 2,681 -------------- ----------------- ---------------- Total operating expenses - 1,900 143,270 -------------- ----------------- ---------------- Operating Income - - 6,947 -------------- ----------------- ---------------- Interest Expense, Net - - 5,941 -------------- ----------------- ---------------- Other Income/(Loss), Net Equity in earnings of subsidiaries - 1,040 - Other, net - - 6,585 -------------- ----------------- ---------------- Other income/(loss), net - 1,040 6,585 -------------- ----------------- ---------------- Income Before Income Tax Expense - 1,040 7,591 Income Tax Expense - - 3,019 -------------- ----------------- ---------------- Net Income $ - $ 1,040 $ 4,572 ============== ================= ================
F-78 SELECT ENERGY SERVICES INC. AND SUBSIDIARIES Consolidating Statement of Retained Earnings (a) Year Ended December 31, 2003 (Thousands of Dollars)
Select Energy Select Energy Reeds Ferry HEC/Tobyhanna Services, Inc. Contracting, Inc. Supply Co., Inc. Energy Project, Inc. -------------- ----------------- ---------------- --------------------- Balance at beginning of period $ 5,934 $ 1,656 $ (49) $ 707 Additions: Net income 4,572 846 - 195 -------------- ----------------- ---------------- --------------------- Balance at end of period $ 10,506 $ 2,502 $ (49) $ 902 ============== ================= ================ =====================
SELECT ENERGY SERVICES INC. AND SUBSIDIARIES Consolidating Statement of Capital Surplus, Paid In (a) Year Ended December 31, 2003 (Thousands of Dollars)
Select Energy Select Energy Reeds Ferry HEC/Tobyhanna Services, Inc. Contracting, Inc. Supply Co., Inc. Energy Project, Inc. -------------- ----------------- ---------------- --------------------- Balance at beginning of period $ 25,096 $ 15,124 $ 3 $ - Allocation of benefits - ESOP (67) (44) - - -------------- ----------------- ---------------- --------------------- Balance at end of period $ 25,029 $ 15,080 $ 3 $ - ============== ================= ================ =====================
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-79 SELECT ENERGY SERVICES INC. AND SUBSIDIARIES Consolidating Statement of Retained Earnings (a) Year Ended December 31, 2003 (Thousands of Dollars)
HEC/CJTS Energy Center LLC Eliminations Consolidated -------------- ----------------- ---------------- Balance at beginning of period $ (11) $ 2,303 $ 5,934 Additions: Net income - 1,040 4,572 -------------- ----------------- ---------------- Balance at end of period $ (11) $ 3,343 $ 10,506 ============== ================= ================
SELECT ENERGY SERVICES INC. AND SUBSIDIARIES Consolidating Statement of Capital Surplus, Paid In (a) Year Ended December 31, 2003 (Thousands of Dollars)
HEC/CJTS Energy Center LLC Eliminations Consolidated -------------- ----------------- ---------------- Balance at beginning of period $ 12 $ 15,139 $ 25,096 Allocation of benefits - ESOP - (44) (67) -------------- ----------------- ---------------- Balance at end of period $ 12 $ 15,095 $ 25,029 ============== ================= ================
F-80 SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES Consolidating Statement of Cash Flows (a) Year Ended December 31, 2003 (Thousands of Dollars)
Select Energy Select Energy Reeds Ferry HEC/Tobyhanna Services, Inc. Contracting, Inc. Supply Co., Inc. Energy Project, Inc. -------------- ----------------- ---------------- --------------------- Operating Activities: Net income $ 4,572 $ 846 $ - $ 195 Adjustments to reconcile to net cash (used in)/ provided by operating activities: Depreciation 255 1,039 - - Deferred income taxes and investment tax credits, net (147) 212 - - Net other (uses)/sources of cash (43,705) (1,937) - 915 Changes in current assets and liabilities: Receivables and unbilled revenues, net (10,041) (3,670) (32) 131 Other materials and supplies - 1 - - Other current assets (excludes cash) (831) (676) - - Accounts payable 2,619 4,939 32 764 Accrued taxes 355 (315) - (116) Other current liabilities 4,494 (427) - (90) -------------- ----------------- ---------------- --------------------- Net cash flows (used in)/provided by operating activities (42,429) 12 - 1,799 -------------- ----------------- ---------------- --------------------- Investing Activities: Competitive energy assets (990) - - - NU system Money Pool lending (5,200) - - - Other investment activities (3,989) - - (757) -------------- ----------------- ---------------- --------------------- Net cash flows used in investing activities (10,179) - - (757) -------------- ----------------- ---------------- --------------------- Financing Activities: Issuance of long-term debt 63,368 - - - Reacquisitions and retirements of long-term debt (9,913) - - (1,042) -------------- ----------------- ---------------- --------------------- Net cash flows provided by/(used in) financing activities 53,455 - - (1,042) -------------- ----------------- ---------------- --------------------- Net increase in cash for the year 847 12 - - Cash - beginning of year 196 463 5 - -------------- ----------------- ---------------- --------------------- Cash - end of year $ 1,043 $ 475 $ 5 $ - ============== ================= ================ ===================== Supplemental Cash Flow Information: Cash (refunded)/paid during the year for: Interest, net of amounts capitalized $ (788) $ - $ - $ - ============== ================= ================ ===================== Income taxes $ 1,723 $ 736 $ 2 $ 332 ============== ================= ================ =====================
Note: Individual columns may not add to Consolidated due to rounding. The accompanying notes are an integral part of these financial statements. (a) Not covered by auditors' report. F-81 SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES Consolidating Statement of Cash Flows (a) Year Ended December 31, 2003 (Thousands of Dollars)
HEC/CJTS Energy Center LLC Eliminations Consolidated -------------- ----------------- ---------------- Operating Activities: Net income $ - $ 1,040 $ 4,572 Adjustments to reconcile to net cash (used in)/ provided by operating activities: Depreciation - - 1,294 Deferred income taxes and investment tax credits, net - - 65 Net other (uses)/sources of cash - (43) (44,681) Changes in current assets and liabilities: Receivables and unbilled revenues, net - (5,938) (7,676) Other materials and supplies - - 1 Other current assets (excludes cash) - 344 (1,850) Accounts payable - 5,938 2,418 Accrued taxes - (344) 268 Other current liabilities - - 3,976 -------------- ----------------- ---------------- Net cash flows (used in)/provided by operating activities - 997 (41,613) -------------- ----------------- ---------------- Investing Activities: Competitive energy assets - - (990) NU system Money Pool lending - (1) (5,200) Other investment activities - (996) (3,750) -------------- ----------------- ---------------- Net cash flows used in investing activities - (997) (9,940) -------------- ----------------- ---------------- Financing Activities: Issuance of long-term debt - - 63,368 Reacquisitions and retirements of long-term debt - - (10,955) -------------- ----------------- ---------------- Net cash flows provided by/(used in) financing activities - - 52,413 -------------- ----------------- ---------------- Net increase in cash for the year - - 860 Cash - beginning of year 1 - 664 -------------- ----------------- ---------------- Cash - end of year $ 1 $ - $ 1,524 ============== ================= ================ Supplemental Cash Flow Information: Cash (refunded)/paid during the year for: Interest, net of amounts capitalized $ - $ - $ (788) ============== ================= ================ Income taxes $ - $ - $ 2,793 ============== ================= ================
F-82 NOTES TO FINANCIAL STATEMENTS NU Reference is made to "Notes to Consolidated Financial Statements" contained on pages 52 through 77 in NU's 2003 Annual Report to shareholders, which information is incorporated herein by reference. CL&P Reference is made to "Notes to Consolidated Financial Statements" contained on pages 21 through 35 in CL&P's 2003 Annual Report, which information is incorporated herein by reference. PSNH Reference is made to "Notes to Consolidated Financial Statements" contained on pages 19 through 31 in PSNH's 2003 Annual Report, which information is incorporated herein by reference. WMECO Reference is made to "Notes to Consolidated Financial Statements" contained on pages 19 through 31 in WMECO's 2003 Annual Report, which information is incorporated herein by reference. F-83 EXHIBITS The following exhibits are incorporated by reference to the indicated SEC file number, unless a single asterisk appears next to the exhibit reference. A single asterisk indicates exhibits which are filed herewith. A # further indicates that the exhibit is filed under cover of Form SE. EXHIBIT NUMBER DESCRIPTION A. ANNUAL REPORTS Annual Reports filed under the Securities Exchange Act of 1934 A.1 2003 Annual Report on Form 10-K for NU. (File No. 1-5324) A.2 2003 Annual Report on Form 10-K for CL&P. (File No. 0-11419) A.3 2003 Annual Report on Form 10-K for PSNH. (File No. 1-6392) A.4 2003 Annual Report on Form 10-K for WMECO. (File No. 0-7624) B. CHARTERS, ARTICLES OF INCORPORATION, TRUST AGREEMENTS, BY-LAWS, AND OTHER FUNDAMENTAL DOCUMENTS OF ORGANIZATION B.1 Northeast Utilities B.1.1 Declaration of Trust of NU, as amended through May 13, 2003. (Exhibit 4.1 to NU Form S-8 filed June 11, 2003, File No. 333-106008). B.2 The Connecticut Light and Power Company B.2.1 Certificate of Incorporation of CL&P, restated to March 22, 1994. (Exhibit 3.2.1, 1993 NU Form 10-K, File No. 1-5324) B.2.2 Certificate of Amendment to Certificate of Incorporation of CL&P, dated December 26, 1996. (Exhibit 3.2.2, 1996 NU Form 10-K, File No. 1-5324) B.2.3 Certificate of Amendment to Certificate of Incorporation of CL&P, dated April 27, 1998. (Exhibit 3.2.3, 1998 NU Form 10-K, File No. 1-5324) B.2.4 By-Laws of CL&P, as amended to January 1, 1997. (Exhibit 3.2.3, 1996 NU Form 10-K, File No. 1-5324) E-1 B.3 Public Service Company of New Hampshire B.3.1 Articles of Incorporation, as amended to May 16, 1991. (Exhibit 3.3.1, 1993 NU Form 10-K, File No. 1-5324) B.3.2 By-Laws of PSNH, as amended to November 1, 1993. (Exhibit 3.3.2, 1993 NU Form 10-K, File No. 1-5324) B.4 Western Massachusetts Electric Company B.4.1 Articles of Organization of WMECO, restated to February 23, 1995. (Exhibit 3.4.1, 1994 NU Form 10-K, File No. 1-5324) B.4.2 By-Laws of WMECO, as amended to May 1, 2000. (Exhibit 3.1, 2000 NU Form 10-Q for the Quarter Ended June 30, 2000, File No. 1-5324) B.5 North Atlantic Energy Corporation B.5.1 Articles of Incorporation of NAEC dated September 20, 1991. (Exhibit 3.5.1, 1993 NU Form 10-K, File No. 1-5324) B.5.2 Articles of Amendment dated October 16, 1991, and June 2, 1992, to Articles of Incorporation of NAEC. (Exhibit 3.5.2, 1993 NU Form 10-K, File No. 1-5324) B.5.3 By-Laws of NAEC, as amended to June 1, 2000. (Exhibit 3.1, 2000 NU Form 10-Q for the Quarter Ended September 30, 2000, File No. 1-5324) B.6 The Quinnehtuk Company B.6.1 Articles of Organization of The Quinnehtuk Company dated December 14, 1928, and Articles of Amendment dated December 18, 1930. (Exhibit B.6.1, 1997 NU Form U5S, File No. 1-5324) B.6.2 Amendment to Certificate of Incorporation of The Quinnehtuk Company dated June 10, 1975. (Exhibit B.6.2, 1993 NU Form U5S, File No. 1-5324) B.6.3 By-Laws of The Quinnehtuk Company as amended to February 11, 1998. (Exhibit B.6.3, 1997 NU Form U5S, File No. 1-5324) B.7 The Rocky River Realty Company B.7.1 Certificate of Incorporation, as amended, of The Rocky River Realty Company. (Exhibit 1.9, 1977 NU Form U5S, File No. 30-246) E-2 B.7.2 Certificate of Amendment to Certificate of Incorporation of The Rocky River Realty Company, dated December 26, 1996. (Exhibit B.7.2, 1996 NU U5S, File No. 1-5324) B.7.3 Certificate of Amendment to Certificate of Incorporation of the Rocky River Realty Company, dated April 27, 1998. (Exhibit B.7.3, 1997 NU Form U5S, File No. 1-5324) B.7.4 By-Laws of The Rocky River Realty Company, as to February 11, 1998. (Exhibit B.7.4, 1997 NU Form U5S, File No. 1-5324) B.8 Electric Power, Incorporated B.8.1 Charter of Electric Power, Incorporated dated January 1, 1955. (Exhibit B.9, 1983 NU Form U5S, File No. 30-246) B.8.2 Amendment to Charter of Electric Power, Incorporated (Special Act No. 133, Volume XXXI, page 103, approved June 11, 1963). (Exhibit B.9.1, 1983 NU Form U5S, File No. 30-246) B.8.3 Certificate of Amendment to Certificate of Incorporation of Electric Power, Incorporated, dated December 26, 1996. (Exhibit B.10.3, 1996 NU Form U5S, File No. 1-5324) B.8.4 By-Laws of Electric Power, Incorporated as amended to February 15, 1952. (Exhibit B.9.2, 1983 NU Form U5S, File No. 30-246) B.9 The Nutmeg Power Company B.9.1 Certificate of Organization of The Nutmeg Power Company dated July 19, 1954. (Exhibit B.11, 1983 NU Form U5S, File No. 30-246) B.9.2 Certificate of Amendment to the Certificate of Incorporation of The Nutmeg Power Company, dated December 26, 1996. B.11.2, 1996 NU Form U5S, File No. 1-5324) B.9.3 By-Laws of The Nutmeg Power Company as amended to January 1, 1997. (Exhibit B.11.3, 1996 NU Form U5S, File No. 1-5324) E-3 B.10 The Connecticut Steam Company B.10.1 Certificate of Incorporation of The Connecticut Steam Company dated May 13, 1965, including Special Act No. 325, an Act Incorporating The Connecticut Steam Company (Special Acts 1963, Senate Bill No. 704, approved June 24, 1963). (Exhibit B.12, 1983 NU Form U5S, File No. 30-246) B.10.2 Certificate of Amendment to Certificate of Incorporation of The Connecticut Steam Company, dated December 26, 1996. (Exhibit B.12.2, 1996 NU Form U5S, File No. 1-5324) B.10.3 By-Laws of the Connecticut Steam Company, as amended to June 26, 1998. (Exhibit B.10.4, 2002 NU Form U5S, File No. 30-246) B.11 Holyoke Water Power Company B.11.1 Articles of Organization of Holyoke Water Power Company, as amended. (Exhibit 1.8, 1977 NU Form U5S, File No. 30-246) B.11.2 By-Laws of Holyoke Water Power Company, as amended to February 11, 1998. (Exhibit B.14.2,1997 NU Form U5S, File No. 1-5324) B.12 Holyoke Power and Electric Company B.12.1 Articles of Organization of Holyoke Power and Electric Company dated December 5, 1925. (Exhibit B.15, 1983 NU Form U5S, File No. 30-246) B.12.2 Chapter 147 of the Massachusetts Acts of 1926 amending the Charter of Holyoke Power and Electric Company, as recorded with the Office of the Secretary of the Commonwealth on March 29, 1926. (Exhibit B.15.1, 1983 NU Form U5S, File No. 30-246) B.12.3 By-Laws of Holyoke Power and Electric Company, as amended to February 11, 1998. (Exhibit B.15.3, 1997 NU U5S, File No. 1-5324) B.13 Northeast Utilities Service Company B.13.1 Certificate of Incorporation of Northeast Utilities Service Company, as amended to February 20, 1974. (Exhibit B.16, 1983 NU Form U5S, File No. 30-246) E-4 B.13.2 Certificate of Amendment to Certificate of Incorporation of Northeast Utilities Service Company, dated December 26, 1996. (Exhibit B.16.2, 1996 NU Form U5S, File No. 1-5324) B.13.3 Certificate of Amendment to Certificate of Incorporation of Northeast Utilities Service Company, dated April 27, 1998. (Exhibit B.16.3, 1997 NU Form U5S, File No. 1-5324) B.13.4 By-Laws of Northeast Utilities Service Company as amended to January 1, 1997. (Exhibit B.16.3, 1996 NU Form U5S, File No. 1-5324) B.14 Northeast Nuclear Energy Company B.14.1 Certificate of Incorporation of Northeast Nuclear Energy Company as amended to April 24, 1974. (Exhibit B.17, 1983 NU Form U5S, File No. 30-246) B.14.2 Certificate of Amendment to Certificate of Incorporation of Northeast Nuclear Energy Company, dated December 26, 1996. (Exhibit B.17.2, 1996 NU Form U5S, File No. 1-5324) B.14.3 Certificate of Amendment to Certificate of Incorporation of Northeast Nuclear Energy Company, dated April 27, 1998. (Exhibit B.17.3, 1997 NU Form U5S, File No. 1-5324) B.14.4 By-Laws of Northeast Nuclear Energy Company, as amended to June 1, 2000. (Exhibit B.14.5, 2000 NU Form U5S, File No. 1-5324) B.15 NU Enterprises, Inc. B.15.1 Certificate of Incorporation of NU Enterprises, Inc. dated December 28, 1998. (Exhibit B.15.1, 1999 NU Form U5S, File No. 1-5324) B.15.2 By-Laws of NU Enterprises, Inc., as amended to June 1, 2000. (Exhibit B.16.3, 2000 NU Form U5S, File No. 1-5324) B.16 Select Energy Services, Inc. B.16.1 Articles of Organization of HEC Inc. dated June 19, 1990. (Exhibit B.19, 1990 NU Form U5S, File No. 30-246) * B.16.2 Amendment to Articles of Organization of HEC, Inc. dated May 25, 2001. E-5 B. 16.3 By-Laws of HEC Inc., as amended, June 30, 1999. (Exhibit B.16.2, 1999 NU Form U5S, File No. 1-5324) B.17 Select Energy Contracting, Inc. F/K/A HEC International Corporation * B.17.1 Restated Articles of Organization of Select Energy Contracting, Inc. F/K/A HEC International Corporation dated April 20, 2000. B.17.2 By-Laws of Select Energy Contracting, Inc. F/K/A HEC International Corporation dated July 9, 1999. Exhibit B.17.3, 1999 NU Form U5S, File No. 1-5324) B.18 HEC/Tobyhanna Energy Project, Inc. B.18.1 Articles of Organization of HEC/Tobyhanna Energy Project, Inc. dated September 28, 1999. (Exhibit B.19.1, 1999 NU Form U5S, File No. 1-5324) B.18.2 By-Laws of HEC/Tobyhanna Energy Project, Inc., dated September 28, 1999. (Exhibit B.19.2, 1999 NU Form U5S, File No. 1-5324) B.19 Reeds Ferry Supply Co., Inc. B.19.1 Articles of Agreement of Reeds Ferry Supply Co., Inc., dated June 25, 1964. (Exhibit B.20.1, 1999 NU Form U5S, File No. 1-5324) B.19.2 By-Laws of Reeds Ferry Supply Co., Inc., as Amended and Restated August 4, 1999. (Exhibit B.20.2, 1999 NU Form U5S, File No. 1-5324) B.20 North Atlantic Energy Service Corporation B.20.1 Articles of Incorporation; and Certificate of Amendment of North Atlantic Energy Service Corporation dated June 1, 1992. (Exhibit B.21, 1992 NU Form U5S, File No. 30-246) B.20.2 By-Laws of North Atlantic Energy Service Corporation, as amended to June 1, 2000. (Exhibit B.21.3, 2000 NU Form U5S, File No. 1-5324) B.21 Connecticut Yankee Atomic Power Company B.21.1 Certificate of Incorporation of Connecticut Yankee Atomic Power Company and amendments dated to November 20, 1964. (Exhibit B.20.1, 1993 NU Form U5S, File No. 1-5324) E-6 B.21.2 Certificate of Amendment to Certificate of Incorporation of Connecticut Yankee Atomic Power Company, dated December 26, 1996. (Exhibit B.22.2, 1996 NU Form U5S, File No. 1-5324) B.21.3 Certificate of Amendment to Certificate of Incorporation of Connecticut Yankee Atomic Power Company, dated October 15, 1998. (Exhibit B.22.3, 1998 NU U5S, File No. 1-5324) B.21.4 By-Laws of Connecticut Yankee Atomic Power Company, as amended to March 31, 1999. (Exhibit B.22.4, 1998 NU U5S, File No. 1-5324) B.22 Properties, Inc. B.22.1 Articles of Agreement of Properties, Inc. as amended to June 1, 1983. (Exhibit B.21.1, 1993 NU Form U5S, File No. 1-5324) B.22.2 By-Laws of Properties, Inc., amended and restated as of February 7, 1996. (Exhibit B.23.2, 1995 NU Form U5S, File No. 1-5324) B.23 Charter Oak Energy, Inc. B.23.1 Certificate of Incorporation of Charter Oak Energy, Inc., dated September 28, 1988. (Exhibit B.16, 1989 NU Form U5S, File No. 30-246) B.23.2 Certificate of Amendment to Certificate of Incorporation of Charter Oak Energy, Inc., dated December 26, 1996. (Exhibit B.25.2, 1996 NU Form U5S, File No. 1-5324) B.23.3 Certificate of Amendment to Certificate of Incorporation of Charter Oak Energy Inc., dated April 27, 1998. (Exhibit B.25.3, 1997 NU Form U5S, File No. 1-5324) B.23.4 By-Laws of Charter Oak Energy, Inc., as amended to June 1, 2000. (Exhibit B.24.5, 2000 NU Form U5S, File No. 1-5324) B.24 New England Hydro-Transmission Corporation B.24.1 Articles of Incorporation, (Exhibit B.8a, 1986 New England Electric System U5S, File No. 30-33) B.24.2 Articles of Amendment of New England Hydro-Transmission Corporation dated January 18, 1989, (Exhibit B.10a, 1988 New England Electric System U5S, File No. 1-3346). E-7 B.24.3 By-Laws of New England Hydro-Transmission Corporation dated March 17, 1998. (Exhibit B. 16.b, 1998 New England Electric System U5S, File No. 1-3346) B.25 New England Hydro-Transmission Electric Company B.25.1 Restated Articles of Organization of New England Hydro-Transmission Electric Company dated January 13, 1989. (Exhibit B.11a, 1988 New England Electric System U5S, File No. 30-33) B.25.2 By-Laws of New England Hydro-Transmission Electric Company dated March 17, 1998. (Exhibit B.17.b, 1998 New England Electric System U5S File No. 1-3346) B.26 CL&P Capital, L.P. B.26.1 Amended and Restated Limited Partnership Agreement of CL&P Issuing Partnership dated as of January 23, 1995. (Exhibit A.1, to CL&P 35-CERT, File No. 70-8451, filed January 31, 1995) B.27 ERI/HEC EFA-Med, LLC B.27.1 Certificate of Formation of ERI/HEC EFA-Med, LLC, dated September 15, 2000. (Exhibit B.31.1, 2000 NU Form U5S, File No. 1-5324) B.27.2 Operating Agreement of ERI/HEC EFA-Med, LLC, dated September 22, 2000. (Exhibit B.31.2, 2000 NU Form U5S, File No. 1-5324) B.28 Mode 1 Communications, Inc. B.28.1 Certificate of Incorporation of Mode 1 Communications, Inc. dated March 26, 1996. (Exhibit B.34.1, 1996 NU Form U5S, File No. 1-5324) B.28.2 Certificates of Amendment to Certificate of Incorporation of Mode 1 Communications, Inc., dated December 26, 1996 and February 4, 1997. (Exhibit B.34.2, 1996 NU Form U5S, File No. 1-5324) B.28.3 Certificate of Amendment to Certificate of Incorporation of Mode l Communications, Inc., dated April 27, 1998. (Exhibit B.34.3, 1997 NU Form U5S, File No. 1-5324) B.28.4 By-Laws of Mode 1 Communications, Inc., as amended to January 1, 1997. (Exhibit B.34.4, 1996 NU Form U5S, File No. 1-5324) E-8 B.29 Select Energy, Inc. B.29.1 Certificate of Incorporation of Select Energy, Inc. dated September 26, 1996. (Exhibit B.40.1, 1996 NU Form U5S, File No. 1-5324) B.29.2 Certificates of Amendment to Certificate of Incorporation of Select Energy, Inc., dated December 26, 1996 and April 25, 1997. (Exhibit B.40.2, 1996 NU Form U5S, File No. 1-5324) B.29.3 Certificate of Amendment to Certificate of Incorporation of Select Energy, Inc., dated April 27, 1998. (Exhibit B.40.3, 1997 NU Form U5S, File No. 1-5324) B.29.4 By-Laws of Select Energy, Inc., as amended to June 1, 2000. (Exhibit B.33.5, 2000 NU Form U5S, File No. 1-5324) B.30 Northeast Generation Company B.30.1 Certificate of Incorporation of Northeast Generation Company, dated December 28, 1998. (Exhibit B.34.1, 1999 NU Form U5S, File No. 1-5324) B.30.2 By-Laws of Northeast Generation Company, as amended to June 1, 2000. (Exhibit B.34.3, 2000 NU Form U5S, File No. 1-5324) B.31 Northeast Generation Services Company B.31.1 Certificate of Incorporation of Northeast Generation Services Company, dated December 28, 1998. (Exhibit B.35.1, 1999 NU Form U5S, File No. 1-5324) B.31.2 By-Laws of Northeast Generation Services Company, as amended to June 1, 2000. (Exhibit B.35.3, 2000 NU Form U5S, File No. 1-5324) B.32 CL&P Receivables Corporation B.32.1 Certificate of Incorporation of CL&P Receivables Corporation, dated September 5, 1997. (Exhibit B.41.1, 1997 NU Form U5S, File No. 1-5324) B.32.2 Bylaws of CL&P Receivables Corporation, dated September 12, 1997. (Exhibit B.41.2, 1997 NU Form U5S, File No. 1-5324) E-9 B.33 Yankee Energy System, Inc. B.33.1 Certificate of Incorporation of Yankee Energy System, Inc., F/K/A NU Acquisition Corp., dated February 15, 2000. (Exhibit B.38.1, 2000 NU Form U5S, File No. 1-5324) B.33.2 Certificate of Merger of Yankee Energy System, Inc. with and into NU Acquisition Corp., dated as of March 1, 2000 (Exhibit B.38.2, 2000 NU Form U5S, File No. 1-5324) B.33.3 By-Laws of Yankee Energy System, Inc., as amended to March 1,2000. (Exhibit B.38.3, 2000 NU Form U5S, File No. 1-5324) B.34 NorConn Properties, Inc. B.34.1 Certificate of Incorporation of NorConn Properties, Inc., dated May 10, 1988. (Exhibit B.39.1, 2000 NU Form U5S, File No. 1-5324) B.34.2 By-Laws of NorConn Properties, Inc., as in effect on March, 1, 2000. (Exhibit B.39.2, 2000 NU Form U5S, File No. 1-5324) B.35 R. M. Services, Inc. B.35.1 Certificate of Incorporation of R. M. Services, Inc. dated November 17, 1994. (Exhibit B.40.1, 2000 NU Form U5S, File No. 1-5324) B.35.2 Certificate of Amendment of Certificate of Incorporation of R. M. Services, Inc., dated June 28, 2001. (Exhibit B.40.2, 2001 NU Form U5S, File No. 30-246). B.35.3 By-Laws of R. M. Services, Inc., as in effect on March 1, 2000. (Exhibit B.40.2, 2000 NU Form U5S, File No. 1-5324) B.36 Yankee Energy Financial Services Company B.36.1 Certificate of Incorporation of Yankee Energy Financial Services Company, dated September 1, 1992. (Exhibit B.41.1, 2000 NU Form U5S, File No. 1-5324) B.36.2 By-Laws of Yankee Energy Financial Services Company, as in effect on March 1, 2000. (Exhibit B.41.2, 2000 NU Form U5S, File No. 1-5324) E-10 B.37 Yankee Energy Services Company B.37.1 Certificate of Incorporation of Yankee Energy Services Company, dated June 30, 1993. (Exhibit B.42.1, 2000 NU Form U5S, File No. 1-5324) B.37.2 Certificate of Amendment to Certificate of Incorporation of Yankee Energy Services Company, dated January 20, 1995. (Exhibit B.42.2, 2000 NU Form U5S, File No. 1-5324) B.37.3 By-Laws of Yankee Energy Services Company, as in effect on March 1, 2000. (Exhibit B.42.3, 2000 NU Form U5S, File No. 1-5324) B.38 Yankee Gas Services Company B.38.1 Certificate of Incorporation of Yankee Gas Services Company, F/K/A Mohawk Gas Company, (Special Act No. 218, January 1955 session, approved May 26, 1955). (Exhibit B.43.1, 2000 NU Form U5S, File No. 1-5324) B.38.2 Certificate of Amendment to the Certificate of Incorporation of Yankee Gas Services Company, dated May 26, 1989. (Exhibit B.43.2, 2000 NU Form U5S, File No. 1-5324) B.38.3 Certificate of Amendment to the Certificate of Incorporation of Yankee Gas Services Company, dated June 27, 1989. (Exhibit B.43.3, 2000 NU Form U5S, File No. 1-5324) B.38.4 By-Laws of Yankee Gas Services Company, as in effect on March 1, 2000. (Exhibit B.43.4, 2000 NU Form U5S, File No. 1-5324) B.39 Housatonic Corporation B.39.1 Certificate of Incorporation of Housatonic Corporation, dated October 16, 1987. (Exhibit B.44.1, 2000 NU Form U5S, File No. 1-5324) B.39.2 Certificate of Amendment to the Certificate of Incorporation of Housatonic Corporation, dated January 10, 1989. (Exhibit B.44.2, 2000 NU Form U5S, File No. 1-5324) B.39.3 By-Laws of Housatonic Corporation, as in effect on March 1, 2000. (Exhibit B.44.3, 2000 NU Form U5S, File No. 1-5324) E-11 B.40 E. S. Boulos Company B.40.1 Certificate of Incorporation of E. S. Boulos Company, F/K/A NGS Acquisition Sub, Inc., dated January 10, 2001. (Exhibit B.46.1, 2001 NU Form U5S, File No. 30-246) B.40.2 Certificate of Amendment of Incorporation of E. S. Boulos Company dated January 22, 2001. (Exhibit B.46.2, 2001 NU Form U5S, File No. 30-246) B.40.3 By-Laws of E. S. Boulos Company, as amended to January 22, 2001. (Exhibit B.46.3, 2001 NU Form U5S, File No. 30-246) B.41 NGS Mechanical, Inc. B.41.1 Certificate of Incorporation of NGS Mechanical, Inc., dated January 24, 2001. (Exhibit B.47.1, 2001 NU Form U5S, File No. 30-246) B.41.2 By-Laws of NGS Mechanical, Inc. dated as of January 25, 2001. (Exhibit B.47.2, 2001 NU Form U5S, File No. 30-246) B.42 Select Energy New York, Inc. B.42.1 Certificate of Incorporation of Select Energy New York, Inc., F/K/A Plum Street Energy Marketing, Inc. and Niagara Mohawk Energy Marketing, Inc., dated February 13, 1996. (Exhibit B.48.1, 2001 NU Form U5S, File No. 30-246) B.42.2 Certificate of Amendment of Incorporation of Select Energy New York, Inc., dated August 21, 1998. (Exhibit B.48.2, 2001 NU Form U5S, File No. 30-246) B.42.3 Certificate of Amendment of Incorporation of Select Energy New York, Inc., dated November 21, 2001. (Exhibit B.48.3, 2001 NU Form U5S, File No. 30-246) B.42.4 By-Laws of Select Energy New York, Inc., as in effect on November 30, 2001. (Exhibit B.48.4, 2001 NU Form U5S, File No. 30-246) B.43 CL&P Funding LLC B.43.1 Certificate of Formation of CL&P Funding LLC dated January 3, 2001. (Exhibit 3.1, CL&P Funding LLC Form S-3, dated January 18, 2001, File No. 333-53866) E-12 B.43.2 Limited Liability Company Agreement of CL&P Funding LLC made and effective as of January 3, 2001 and amended and restated as of March 30, 2001. (Exhibit 3.2, CL&P Funding LLC Form S-3, Amendment No. 2, dated March 26, 2001, File No. 333-53866) B.44 PSNH Funding LLC B.44.1 Certificate of Formation of PSNH Funding LLC dated January 24, 2001. (Exhibit 3.1, PSNH Funding LLC Form S-3 (Amendment No. 2), dated April 18, 2001, File No. 333-55830) B.44.2 Limited Liability Company Agreement of PSNH Funding LLC made and effective as of January 24, 2001 and as amended and restated as of April 25, 2001. (Exhibit 3.2, PSNH Funding LLC Form 8-K, dated April 25, 2001, File No. 333-55830) B.45 PSNH Funding LLC 2 B.45.1 Certificate of Formation of PSNH Funding LLC 2 dated December 10, 2001. (Exhibit 3.1, PSNH Funding LLC 2 Form S-3, dated December 28, 2001, File No. 333-76040) B.45.2 Limited Liability Company Agreement of PSNH Funding LLC 2 dated as of December 10, 2001. (Exhibit 3.2, PSNH Funding LLC 2 Form S-3 (Amendment No. 2), dated January 14, 2002, File No. 333-76040) B.46 WMECO Funding LLC B.46.1 Certificate of Formation of WMECO Funding LLC dated March 28, 2001. (Exhibit 3.1, WMECO Funding LLC Form S-3, dated April 18, 2001, File No. 333-59118) B.46.2 Limited Liability Company Agreement of WMECO Funding LLC made and effective as of March 28, 2001 and as amended and restated as of May 17, 2001. (Exhibit 3.2, WMECO Funding LLC Form S-3, Amendment No. 2, dated May 7, 2001, File No. 333-59118) B.47 Woods Electrical Co., Inc. B.47.1 Certificate of Incorporation of Woods Electrical Co., Inc., F/K/A NGS Acquisition, Inc., dated July 18, 2002. (Exhibit B.47.1, 2002 NU Form U5S, File No. 30-246) B.47.2 Certificate of Amendment of Incorporation of Woods Electrical Co., Inc., dated August 1, 2002. (Exhibit B.47.2, 2002 NU Form U5S, File No. 30-246) E-13 B.47.3 By-Laws of Woods Electrical Co., Inc., as amended to August 9, 2002. (Exhibit B.47.3, 2002 NU Form U5S, File No. 30-246) B.48 Woods Network Services, Inc. B.48.1 Certificate of Incorporation of Woods Network Services, Inc., F/K/A NGS Telecommunications, Inc. dated July 18, 2002. (Exhibit B.48.1, 2002 NU Form U5S, File No. 30-246) B.48.2 Certificate of Amendment of Incorporation of Woods Network Services, Inc., dated August 1, 2002. (Exhibit B.48.2, 2002 NU Form U5S, File No. 30-246) B.48.3 By-Laws of Woods Network Services, Inc., as amended to August 9, 2002. (Exhibit B.48.3, 2002 NU Form U5S, File No. 30-246) B.49 Greenport Power, LLC * B.49.1 Articles of Organization of Greenport Power, LLC, dated December 17, 2002. * B.49.2 Operating Agreement of Greenport Power, LLC dated February 10, 2003. B.50 HEC/CJTS Energy Center LLC * B.50.1 Certificate of Formation of HEC/CJTS Energy Center LLC dated March 2, 2001. * B.50.2 Limited Liability Company Agreement of HEC/CJTS Energy Center LLC, effective as of 3/2/2001. B.51 Maine Yankee Atomic Power Company B.51.1 Certificate of Organization of Maine Yankee Atomic Power Company, as amended through September 18, 1992. (Exhibit 15a to National Grid Transco PLC U5S filed July 29, 2003, File No. 030-00354) B.51.2 By-Laws of Maine Yankee Atomic Power Company, as amended through November 25, 1996. (Exhibit 15b to National Grid Transco PLC U5S filed July 29, 2003, File No. 030-00354) E-14 B.52 Yankee Atomic Electric Company B.52.1 Articles of Organization of Yankee Atomic Electric Company, as amended through May 30, 2001. (Exhibit 17a to National Grid Transco PLC U5S filed July 29, 2003, File No. 030-00354) B.52.2 By-Laws of Yankee Atomic Electric Company as, amended through December 9, 1988. (Exhibit 17b to National Grid Transco PLC U5S filed July 29, 2003, File No. 030-00354) C.(a) INSTRUMENTS DEFINING THE RIGHTS OF SECURITY HOLDERS, INCLUDING INDENTURES C.1 Northeast Utilities C.1.1 Indenture dated as of December 1, 1991, between Northeast Utilities and IBJ Schroder Bank & Trust Company, with respect to the issuance of Debt Securities. (Exhibit 4.1.1, 1991 NU Form 10-K, File No. 1-5324) C.1.2 First Supplemental Indenture, dated as of December 1, 1991, between Northeast Utilities and IBJ Schroder Bank & Trust Company, with respect to the issuance of Series A Notes. (Exhibit 4.1.2, 1991 NU Form 10-K, File No. 1-5324) C.1.3 Second Supplemental Indenture, dated as of March 1, 1992, between Northeast Utilities and IBJ Schroder Bank & Trust Company, with respect to the issuance of 8.38% Amortizing Notes. (Exhibit 4.1.3, 1992 NU Form 10-K, File No. 1-5324) C.1.4 Indenture between NU and The Bank of New York, as Trustee, dated as of April 1, 2002 (Exhibit A-3 to 35 CERT filed April 9, 2002, File No. 70-9755) C.1.6 First Supplemental Indenture between NU and The Bank of New York, as Trustee, dated as of April 1, 2002 relating to the $263M of Senior Notes, Series A, due 2012. (Exhibit A-4 to 35 CERT filed April 9, 2002, File No. 70-9535) C.1.7 Second Supplemental Indenture dated as of June 1, 2003, between NU and the Bank of New York as Trustee, relating to $150M of Senior Notes, Series B, due 2008. (Exhibit A-1.3 to NU 35-CERT filed June 6, 2003, File No. 70-10051) C.1.8 Credit Agreement among Northeast Utilities, the Banks Named Therein, Union Bank of California, N.A. E-15 as Administrative Agent and Bank One, N.A., as Fronting Bank, dated as of November 10, 2003. (Exhibit B-5 to NU 35-CERT filed November 17, 2003, File No. 70-9755) C.1.9 Rights Agreement dated as of February 23, 1999, between Northeast Utilities and Northeast Utilities Service Company, as Rights Agent. (Exhibit 1 to NU's Registration Statement on Form 8-A, filed on April 12, 1999, File No. 001-05324). C.1.9.1 Amendment to Rights Agreement. (Exhibit 3 to NU Form 8-K dated October 13, 1999, File No. 1-5324). C.1.9.2 Second Amendment to Rights Agreement. (Exhibit B-3 to NU 35-CERT, dated February 1, 2002, File No. 070-09463). C.2 The Connecticut Light and Power Company C.2.1 Indenture of Mortgage and Deed of Trust between CL&P and Bankers Trust Company, Trustee, dated as of May 1, 1921. (Composite including all twenty-four amendments to May 1, 1967.) (Exhibit 4.1.1, 1989 NU Form 10-K, File No. 1-5324) C.2.2 Supplemental Indenture to the Composite May 1, 1921 Indenture of Mortgage and Deed of Trust between CL&P and Bankers Trust Company, dated as of June 1, 1994. (Exhibit 4.2.15, 1994 NU Form 10-K, File No. 1-5324) C.2.3 Supplemental Indenture to the Composite May 1, 1921 Indenture of Mortgage and Deed of Trust between CL&P and Bankers Trust Company, dated as of October 1, 1994. (Exhibit 4.2.16, 1994 NU Form 10-K, File No. 1-5324) C.2.4 Financing Agreement between Industrial Development Authority of the State of New Hampshire and CL&P (Pollution Control Bonds, 1986 Series) dated as of December 1, 1986. (Exhibit C.1.47, 1986 NU Form U5S, File No. 30-246) C.2.5 Financing Agreement between Industrial Development Authority of the State of New Hampshire and CL&P (Pollution Control Bonds, 1988 Series) dated as of October 1, 1988. (Exhibit C.1.55, 1988 NU Form U5S, File No. 30-246) E-16 C.2.6 Loan and Trust Agreement among Business Finance Authority of the State of New Hampshire and CL&P (Pollution Control Bonds, 1992 Series A) dated as of December 1, 1992. (Exhibit C.2.33, 1992 NU Form U5S, File No. 30-246) C.2.7 Loan Agreement between Connecticut Development Authority and CL&P (Pollution Control Bonds - Series A, Tax Exempt Refunding) dated as of September 1, 1993. (Exhibit 4.2.21, 1993 NU Form 10-K, File No. 1-5324) C.2.8 Loan Agreement between Connecticut Development Authority and CL&P (Pollution Control Bonds - Series B, Tax Exempt Refunding) dated as of September 1, 1993. (Exhibit 4.2.22, 1993 NU Form 10-K, File No. 1-5324) C.2.9 Amended and Restated Loan Agreement between Connecticut Development Authority and CL&P (Pollution Control Revenue Bond - 1996A Series) dated as of May 1, 1996 and Amended and Restated as of January 1, 1997. (Exhibit 4.2.24, 1996 NU Form 10-K, File No. 1-5324) C.2.9.1 Amended and Restated Indenture of Trust between Connecticut Development Authority and the Trustee (CL&P Pollution Control Revenue Bond-1996A Series), dated as of May 1, 1996, and Amended and Restated as of January 1, 1997. (Exhibit 4.2.24.1, 1996 NU Form 10-K, File No. 1-5324) C.2.9.2 Standby Bond Purchase Agreement among CL&P, Bank of New York as Purchasing Agent and the Banks named therein, dated October 24, 2000. (Exhibit 4.2.24.2, 2000 NU Form 10-K, File No. 1-5324) C.2.9.3 AMBAC Municipal Bond Insurance Policy issued by the Connecticut Development Authority (CL&P Pollution Control Revenue Bond-1996A Series), effective January 23, 1997. (Exhibit 4.2.24.3, 1996 NU Form 10-K, File No. 1-5324) C.2.9.4 Amendment No. 2 to the Standby Bond Purchase Agreement dated as of September 9, 2002, among CL&P, The Bank of New York, and the Participating Banks referred to therein. (Exhibit 4.2.7.4, 2002 NU Form 10-Q for the Quarter Ended September 30, 2002, File No. 1-5324) E-17 C.2.9.5 Compensation and Multiannual Mode Agreement among the Connecticut Development Authority and BNY Capital Markets, Inc. dated September 23, 2003 (Exhibit 4.2.7.5, 2003 NU Form 10-Q for the Quarter Ended September 30, 2003, File No. 1-5324) C.2.10 Amended and Restated Receivables Purchase and Sale Agreement dated as of March 30, 2001 (CL&P and CL&P Receivables Corporation (CRC)) (Exhibit 10.1, 2001 NU 10-Q for the Quarter Ended September 30, 2001 (File No. 1-5324)) C.2.10.1 Amendment No. 2 to the Amended and Restated Receivables Purchase and Sale Agreement, dated as of July 10, 2002 (CL&P and CL&P Receivables Corporation (CRC)). (Exhibit 4.2.8.1, 2002 NU Form 10-K, File No. 1-5324) C.2.10.2 Amendment No. 3 to the Amended and Restated Receivables Purchase and Sale Agreement, dated as of July 9, 2003 (Exhibit 4.2.8.2, 2003 NU Form 10-Q for the Quarter Ended September 30, 2003, File No. 1-5324) C.2.11 Purchase and Contribution Agreement (CL&P and CRC), dated as of September 30, 1997 (Exhibit 10.49.1, 1997 NU Form 10-K, File No. 1-5324) C.2.11.1 Amendment No. 2 to the Purchase and Contribution Agreement between CL&P and CRC dated as of March 30, 2001. (Exhibit 4.2.9.1, 2002 NU Form 10-K, File No. 1-5324) C.2.12 Credit Agreement among WMECO, CL&P, PSNH, Yankee Gas, the Banks Named Therein and Citibank, N.A. as Administrative Agent, dated as of November 10, 2003. (Exhibit B-6 to NU 35-CERT filed November 17, 2003, File No. 70-9755). C.3 Public Service Company of New Hampshire C.3.1 First Mortgage Indenture dated as of August 15, 1978, between PSNH and First Fidelity Bank, National Association, New Jersey, Trustee. (Composite including all amendments to May 16, 1991)(Exhibit 4.4.1, 1992 NU Form 10-K, File No. 1-5324) E-18 C.3.1.1 Tenth Supplemental Indenture dated as of May 1, 1991 between PSNH and First Fidelity Bank, National Association. (Exhibit 4.1, PSNH Current Report on Form 8-K dated February 10, 1992, File No. 1-6392) C.3.1.2 Twelfth Supplemental Indenture dated as of December 1, 2001 between PSNH and First Union National Bank (Exhibit 4.3.1.2, 2001 NU Form 10-K, File No. 1- 5324) C.3.2 Series D (Taxable New Issue) Amended and Restated PCRB Loan and Trust Agreement dated as of April 1, 1999. (Exhibit 4.3.6, 1999 NU Form 10-K, File No. 1-5324) C.3.3 Series E (Taxable New Issue) Amended and Restated PCRB Loan and Trust Agreement dated as of April 1, 1999. (Exhibit 4.3.7, 1999 NU Form 10-K, File No. 1-5324) C.3.4 Series A Loan and Trust Agreement among Business Finance Authority of the State of New Hampshire and PSNH and State Street Bank and Trust Company, as Trustee (Tax Exempt Pollution Control Bonds) dated as of October 1, 2001. (Exhibit 4.3.4, 2001 NU Form 10-K, File No. 1-5324) C.3.5 Series B Loan and Trust Agreement among Business Finance Authority of the State of New Hampshire and PSNH and State Street Bank and Trust Company, as Trustee (Tax Exempt Pollution Control Bonds) dated as of October 1, 2001. (Exhibit 4.3.5, 2001 NU Form 10-K, File No. 1-5324) C.3.6 Series C Loan and Trust Agreement among Business Finance Authority of the State of New Hampshire and PSNH and State Street Bank and Trust Company, as Trustee (Tax Exempt Pollution Control Bonds) dated as of October 1, 2001. (Exhibit 4.3.6, 2001 NU Form 10-K, File No. 1-5324) C.3.7 Credit Agreement among WMECO, CL&P, PSNH, Yankee Gas, the Banks Named Therein and Citibank, N.A. as Administrative Agent, dated as of November 10, 2003. (Exhibit B-6 to NU 35-CERT filed November 17, 2003, File No. 70-9755) E-19 C.4 Western Massachusetts Electric Company C.4.1 Loan Agreement between Connecticut development Authority and WMECO Pollution Control Bonds - Series A, Tax Exempt Refunding) dated as of September 1, 1993. (Exhibit 4.4.13, 1993 NU Form 10-K, File No. 1-5324) C.4.2 Indenture Agreement between WMECO and the Bank of New York, as Trustee, dated as of September 1, 2003 (Exhibit 99.2, WMECO Form 8-K filed October 8, 2003, File No. 0-7624) C.4.2.1 First Supplemental Indenture Agreement between WMECO and the Bank of New York, as Trustee, dated as of September 1, 2003 (Exhibit 99.3, WMECO Form 8-K filed October 8, 2003, File No. 0-7624) C.4.3 Credit Agreement among WMECO, CL&P, PSNH, Yankee Gas, the Banks Named Therein and Citibank, N.A. as Administrative Agent, dated as of November 10, 2003. (Exhibit B-6 to NU 35-CERT filed November 17, 2003, File No. 0-9755) C.5 Northeast Generation Company C.5.1 Indenture Mortgage, dated as of October 18, 2001 between NGC and The Bank of New York, as trustee (Exhibit 4.1 to NGC Registration Statement on Form S-4 dated December 6, 2001, File No. 333-74636) C.5.1.1 First Supplemental Indenture Mortgage, dated as of October 18, 2001 between NGC and The Bank of New York, as trustee (Exhibit 4.2 to NGC Registration Statement S-4 dated December 6, 2001, File No. 333-74636) C.6 The Rocky River Realty Company C.6.1 Note Agreement dated April 14, 1992, by and between The Rocky River Realty Company (RRR) and Purchasers named therein (Connecticut General Life Insurance Company, Life Insurance Company of North America, INA Life Insurance Company of New York, Life Insurance Company of Georgia), with respect to RRR's sale of $15 million of guaranteed senior secured notes due 2007 and $28 million of guaranteed senior secured notes due 2017. (Exhibit 10.52, 1992 NU Form 10-K, File No. 1-5324) E-20 C.6.2 Amendment to Note Agreement, dated September 26, 1997. (Exhibit 10.3.1, 1997 NU Form 10-K, File No. 1-5324) C.6.3 Note Guaranty dated April 14, 1992 by Northeast Utilities pursuant to Note Agreement dated April 14, 1992, between RRR and Note Purchasers, for the benefit of The Connecticut National Bank as Trustee, the Purchasers and the owners of the notes. (Exhibit 10.52.1, 1992 NU Form 10-K, File No. 1-5324) C.6.4 Extension of Note Guaranty, dated September 26, 1997. (Exhibit 10.31.2.1, 1997 NU Form 10-K, File No. 1-5324) C.6.5 Assignment of Leases, Rents and Profits, Security Agreement and Negative Pledge, dated as of April 14, 1992, among RRR, NUSCO and The Connecticut National Bank as Trustee, securing notes sold by RRR pursuant to April 14, 1992, Note Agreement. (Exhibit 10.52.2, 1992 NU Form 10-K, File No. 1-5324) C.6.6 Modification of and Confirmation of Assignment of Leases, Rents and Profits, Security Agreement and Negative Pledge, dated as of September 26, 1997. (Exhibit 10.31.3.1, 1997 NU Form 10-K, File No. 1-5324) C.6.7 Purchase and Sale Agreement, dated July 28, 1997, by and between RRR and the Sellers and Purchasers named therein. (Exhibit 10.31.4, 1997 NU Form 10-K, File No. 1-5324) C.6.8 Purchase and Sale Agreement, dated September 26, 1997, by and between RRR and the Purchaser named therein. (Exhibit 10.31.5, 1997 NU Form 10-K, File No. 1-5324) C.7 CL&P Receivables Corporation C.7.1 Amended and Restated Receivables Purchase and Sale Agreement dated as of March 30, 2001 (CL&P and CL&P Receivables Corporation (CRC)) (Exhibit 10.1, 2001 NU 10-Q for the Quarter Ended September 30, 2001 (File No. 1-5324) C.7.1.1 Amendment No. 2 to the Amended and Restated Receivables Purchase and Sale Agreement, dated as of July 10, 2002 (CL&P and CL&P Receivables Corporation (CRC)). (Exhibit 4.2.8.1, 2002 NU Form 10-K, File No. 1-5324) E-21 C.7.1.2 Amendment No. 3 to the Amended and Restated Receivables Purchase and Sale Agreement, dated as of July 9, 2003 (Exhibit 4.2.8.2, 2003 NU Form 10-Q for the Quarter Ended September 30, 2003, File No. 1-5324) C.7.2 Purchase and Contribution Agreement (CL&P and CL&P Receivables Corporation), dated as of September 30, 1997 (Exhibit 10.49.1, 1997 NU Form 10-K, File No. 1-5324) C.7.2.1 Amendment No. 2 to the Purchase and Contribution Agreement between CL&P and CRC dated as of March 30, 2001. (Exhibit 4.2.9.1, 2002 NU Form 10-K, File No. 1-5324) C.8 HEC/Tobyhanna Energy Project, Inc. C.8.1 Trust Indenture & Security Agreement Relating to an Energy Savings Performance Contract Project dated as of September 30, 1999 (Exhibit C.11.1, 2000 NU Form U5S, File No. 1-5324) C.9 Yankee Gas Services Company C.9.1 Indenture of Mortgage and Deed of Trust dated as of July 1, 1989 between Yankee Gas Services Company (Yankee Gas) and The Connecticut National Bank (Mortgage) (Exhibit No. 4.2, Yankee Gas Form 10 dated April 14, 1989, File No. 0-17605) C.9.2 First Supplemental Indenture, dated as of April 1, 1992, to Mortgage (Exhibit No. 4.11, Yankee Energy Form S-3 filed October 2, 1992, Reg. No. 33-52750) C.9.3 Second Supplemental Indenture, dated as of December 1, 1992, to Mortgage (Exhibit No. 10.2, 1992 Yankee Energy System, Inc. (Yankee Energy) Form 10-K, File No. 0-17605) C.9.4 Third Supplemental Indenture, dated as of June 1, 1995, to Mortgage (Exhibit No. 4.14, 1995 Yankee Energy Form 10-K, File No. 0-10721) C.9.5 Fourth Supplemental Indenture, dated as of April 1, 1997, to Mortgage (Exhibit No. 15, 1997 Yankee Energy Form 10-K, File No. 0-10721) C.9.6 Fifth Supplemental Indenture, dated as of January 1, 1999, to Mortgage (Exhibit C.13.6, 2000 NU Form U5S, File No. 1-5324) E-22 C.9.7 Bond Purchase Agreement dated as of July 1, 1989, relating to $119 million aggregate principal amount of First Mortgage Bonds, Series A (Exhibit 4.3, Yankee Gas Form 10 dated April 14, 1989, File No. 0-17605) C.9.7.1 First Amendment, dated as of April 10, 1990, to Bond Purchase Agreement (Exhibit C.13.7.1, 2000 NU Form U5S, File No. 1-5324) C.9.8 Bond Purchase Agreement, dated as of April 1, 1992, relating to $20 million aggregate principal amount of First Mortgage Bonds, Series B (Exhibit No. 4.12, Yankee Energy Form S-3 filed October 2, 1992, Reg. No. 33-52750) C.9.9 Bond Purchase Agreement, dated as of December 1, 1992, relating to $20 million aggregate principal amount of First Mortgage Bonds, Series C (Exhibit No. 10.4, 1992 Yankee Energy Form 10-K, File No. 0-17605) C.9.10 Bond Purchase Agreement, dated as of April 1, 1997, relating to $30 million aggregate principal amount of First Mortgage Bonds, Series E (Exhibit No. 4.16, 1997 Yankee Energy Form 10-K, File No. 0-10721) C.9.11 Bond Purchase Agreement, dated as of January 1, 1999, relating to $50 million aggregate principal amount of First Mortgage Bonds (Exhibit No. C.13.11, NU Form U5S, File No. 1-5324) C.9.12 Credit Agreement among WMECO, CL&P, PSNH, Yankee Gas, the Banks Named Therein and Citibank, N.A. as Administrative Agent, dated as of November 10, 2003. (Exhibit B-6 to NU 35-CERT filed November 17, 2003, File No. 70-9755). C.10 NorConn Properties, Inc. C.10.1 Term Loan Agreement between NorConn Properties, Inc. and Fleet National Bank of Connecticut dated as of February 1, 1996. (Exhibit C.13.1, 2001 NU Form U5S, File No. 30-246) C.(b) AGREEMENTS RELATING TO ACQUISITION OF SECURITIES AND UTILITY ASSETS E-23 D. Tax Allocation Agreement D.1 Amended and Restated Tax Allocation Agreement, dated as of January 1, 1990. (Exhibit D, 1994 NU Form U5S, File No. 30-246) D.2 First Amendment, dated as of October 26, 1998, to the Amended and Restated Tax Allocation Agreement dated as of January 1, 1990. (Exhibit D, Amendment No. 2 to 1997 NU Form U5S, File No. 30-246) D.3 Second Amendment, dated as of March 1, 2000, to the Amended and Restated Tax Allocation Agreement dated as of January 1, 1990 (Exhibit D.3, 2000 NU Form U5S, File No. 30-246) G. Organizational Chart - EWG Northeast Utilities (Parent Company) - NU Enterprises, Inc. (100% owned by NU) - Northeast Generation Company (EWG, 100% owned by NU Enterprises, Inc.) H. EWG Financial Statements E-24 THIS PAGE INTENTIONALLY LEFT BLANK E-25 ITEM 10. EXHIBIT H NORTHEAST GENERATION COMPANY BALANCE SHEETS
-------------------------------------------------------------------------------------------------------------------- At December 31, 2003 2002 -------------------------------------------------------------------------------------------------------------------- (Thousands of Dollars) ASSETS ------ Current Assets: Cash and cash equivalents $ 12,863 $ 18,248 Accounts receivable - 1,441 Accounts receivable from affiliated companies 12,988 12,124 Taxes receivable - 1,587 Notes receivable from affiliated companies 10,000 10,000 Materials and supplies, at average cost 2,311 2,164 Prepayments and other 749 780 -------------- -------------- 38,911 46,344 -------------- -------------- Property, Plant and Equipment: Competitive energy 821,230 799,585 Less: Accumulated depreciation 29,290 19,379 -------------- -------------- 791,940 780,206 Construction work in progress 11,620 21,085 -------------- -------------- 803,560 801,291 -------------- -------------- Deferred Debits and Other Assets: Special deposits 30,204 29,627 Other 8,735 10,149 -------------- -------------- 38,939 39,776 -------------- -------------- Total Assets $ 881,410 $ 887,411 ============== ==============
The accompanying notes are an integral part of these financial statements. E-26 ITEM 10. EXHIBIT H NORTHEAST GENERATION COMPANY BALANCE SHEETS
------------------------------------------------------------------------------------------------------------------- At December 31, 2003 2002 ------------------------------------------------------------------------------------------------------------------- (Thousands of Dollars) LIABILITIES AND CAPITALIZATION ------------------------------ Current Liabilities: Long-term debt - current portion $ 31,500 $ 27,000 Accounts payable 2,266 1,559 Accounts payable to affiliated companies 1,274 1,719 Accrued taxes 446 893 Accrued interest 6,783 7,070 Other 329 484 ----------------- -------------- 42,598 38,725 ----------------- -------------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 42,863 21,005 ----------------- -------------- Capitalization: Long-Term Debt 357,500 389,000 ----------------- -------------- Common Stockholder's Equity: Common stock, $1 par value - authorized 20,000 shares; 6 shares outstanding in 2003 and 2002 - - Capital surplus, paid in 408,095 408,098 Retained earnings 31,766 32,259 Accumulated other comprehensive loss (1,412) (1,676) ----------------- -------------- Common Stockholder's Equity 438,449 438,681 ----------------- -------------- Total Capitalization 795,949 827,681 ----------------- -------------- Commitments and Contingencies (Note 3) Total Liabilities and Capitalization $ 881,410 $ 887,411 ================= ==============
The accompanying notes are an integral part of these financial statements. E-27 ITEM 10. EXHIBIT H NORTHEAST GENERATION COMPANY STATEMENTS OF INCOME
------------------------------------------------------------------------------------------------------------------- For the Years Ended December 31, 2003 2002 ------------------------------------------------------------------------------------------------------------------- (Thousands of Dollars) Operating Revenues $ 143,814 $ 131,897 ----------------- -------------- Operating Expenses: Operation - Operation and maintenance 25,995 25,126 Depreciation and amortization 9,784 14,091 Taxes other than income taxes 9,391 9,825 ----------------- -------------- Total operating expenses 45,170 49,042 ----------------- -------------- Operating Income 98,644 82,855 Interest Expense: Interest on long-term debt 33,187 33,203 Other interest 108 13 ----------------- -------------- Interest expense, net 33,295 33,216 ----------------- -------------- Other Income, Net 478 774 ----------------- -------------- Income Before Income Tax Expense 65,827 50,413 Income Tax Expense 27,320 20,007 ----------------- -------------- Net Income $ 38,507 $ 30,406 ================= ============== STATEMENTS OF COMPREHENSIVE INCOME Net Income $ 38,507 $ 30,406 ----------------- -------------- Other comprehensive income, net of tax: Qualified cash flow hedging instruments 264 265 ----------------- -------------- Comprehensive Income $ 38,771 $ 30,671 ================= ==============
The accompanying notes are an integral part of these financial statements. E-28 ITEM 10. EXHIBIT H NORTHEAST GENERATION COMPANY STATEMENTS OF STOCKHOLDER'S EQUITY
------------------------------------------------------------------------------------------------------------------------------------ Accumulated Common Stock Capital Other ----------------------- Surplus, Retained Comprehensive Shares Amount Paid In Earnings (Loss)/Income Total ------------------------------------------------------------------------------------------------------------------------------------ (Thousands of Dollars, except share information) Balance at January 1, 2002 6 $ - $ 408,099 $ 11,853 $ (1,941) $ 418,011 Net income for 2002 30,406 30,406 Cash dividends on common stock (10,000) (10,000) Allocation of benefits - ESOP (1) (1) Other comprehensive income 265 265 ---------- ----------- ----------- ------------ ------------- -------------- Balance at December 31, 2002 6 - 408,098 32,259 (1,676) 438,681 Net income for 2003 38,507 38,507 Cash dividends on common stock (39,000) (39,000) Allocation of benefits - ESOP (3) (3) Other comprehensive income 264 264 ---------- ----------- ----------- ------------ ------------- -------------- Balance at December 31, 2003 6 $ - $ 408,095 $ 31,766 $ (1,412) $ 438,449 ========== =========== =========== ============ ============= ==============
The accompanying notes are an integral part of these financial statements. E-29 ITEM 10. EXHIBIT H. NORTHEAST GENERATION COMPANY STATEMENTS OF CASH FLOWS
--------------------------------------------------------------------------------------------------------------------------- For the Years Ended December 31, 2003 2002 --------------------------------------------------------------------------------------------------------------------------- (Thousands of Dollars) Operating Activities: Net income $ 38,507 $ 30,406 Adjustments to reconcile to net cash flows provided by operating activities: Depreciation and amortization 9,784 14,091 Deferred income taxes 21,681 19,031 Other sources of cash 1,591 1,974 Other uses of cash (923) (3,399) Changes in current assets and liabilities: Accounts receivable 577 (2,923) Materials and supplies (147) (371) Other current assets (excludes cash) 1,618 2,242 Accounts payable 262 222 Accrued taxes (447) 99 Other current liabilities (178) (348) ------------------ ---------------- Net cash flows provided by operating activities 72,325 61,024 ------------------ ---------------- Investing Activities: Investments in competitive energy plant (11,133) (14,266) NU system Money Pool lending - (100) Investment in special deposits (577) (506) ------------------ ---------------- Net cash flows used in investing activities (11,710) (14,872) ------------------ ---------------- Financing Activities: Retirement of long-term debt (27,000) (24,000) Cash dividends on common stock (39,000) (10,000) ------------------ ---------------- Net cash flows used in financing activities (66,000) (34,000) ------------------ ---------------- Net (decrease)/increase in cash and cash equivalents (5,385) 12,152 Cash and cash equivalents - beginning of year 18,248 6,096 ------------------ ---------------- Cash and cash equivalents - end of year $ 12,863 $ 18,248 ================== ================ Supplemental Cash Flow Information: Cash paid/(refunded) during the year for: Interest, net of amounts capitalized of $1,058 in 2003 and $2,085 in 2002 $ 34,261 $ 36,145 ================== ================ Income taxes $ 5,608 $ (1,435) ================== ================
The accompanying notes are an integral part of these financial statements. E-30