Commission File Number: 30-246
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
FORM U5S
ANNUAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2001
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, 2001
TABLE OF CONTENTS
ITEM PAGE
---- ----
1. System Companies and Investments Therein............................... 2
2. Acquisitions or Sales of Utility Assets................................ 13
3. Issue, Sale, Pledge, Guarantee, or Assumption of
System Securities...................................................... 13
4. Acquisition, Redemption or Retirement of System
Securities............................................................. 14
5. Investments in Securities of Nonsystem
Companies.............................................................. 17
6. Officers and Directors................................................. 19
7. Contributions and Public Relations..................................... 54
8. Service, Sales and Construction Contracts.............................. 54
9. Wholesale Generators and Foreign Utility
Companies.............................................................. 56
10. Financial Statements and Exhibits...................................... 59
Report of Independent Public Accountants............................... F-1
Signature.............................................................. F-2
1
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2001
Name of Company
--------------- No. of Common % of
Name of Owner Shares Owned Voting Power
------------- ------------ ------------
Northeast Utilities (NU) (1)
Name of Issuer
--------------
The Connecticut Light and
Power Company (CL&P) (2)(3)* 7,584,884 100%
Public Service Company of
New Hampshire (PSNH) (2)(3)* 388 100
Western Massachusetts
Electric Company (WMECO) (2)(3)* 509,696 100
North Atlantic Energy
Corporation (NAEC) (3) 224 100
Holyoke Water Power
Company (HWP) (3)* 480,000 100
Northeast Utilities Service
Company (NUSCO) (4) 1 100
Northeast Nuclear Energy
Company (NNECO) (5) 1,500 100
North Atlantic Energy Service
Corporation (NAESCO) (6) 1,000 100
The Quinnehtuk Company (7) 3,500 100
The Rocky River Realty
Company (RRR) (7) 100 100
Yankee Energy System, Inc. (YES) 1,000 100
Charter Oak Energy, Inc. (COE) (9)* 100 100
NU Enterprises, Inc. (NUEI) 89 100
2
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2001
(CONTINUED)
Name of Company
--------------- Issuer Owner's
Name of Owner Book Value Book Value
--------------- ---------- ----------
(000's) (000's)
Northeast Utilities (NU) (1)
Name of Issuer
--------------
The Connecticut Light and
Power Company (CL&P) (2)(3)* $ 776,835 $ 776,835
Public Service Company of
New Hampshire (PSNH) (2)(3)* 341,825 341,825
Western Massachusetts
Electric Company (WMECO) (2)(3)* 150,447 150,447
North Atlantic Energy
Corporation (NAEC) (3) 34,993 34,993
Holyoke Water Power
Company (HWP) (3)* 7,162 7,162
Northeast Utilities Service
Company (NUSCO) (4) 1 1
Northeast Nuclear Energy
Company (NNECO) (5) 16,095 16,095
North Atlantic Energy Service
Corporation (NAESCO) (6) 14 14
The Quinnehtuk Company (7) (2,587) (2,587)
The Rocky River Realty
Company (RRR) (7) 684 684
Yankee Energy System, Inc. (YES) 508,573 508,573
Charter Oak Energy, Inc. (COE) (9)* 11,797 11,797
NU Enterprises, Inc. (NUEI) 116,394 116,394
3
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2001
(CONTINUED)
Name of Company
--------------- No. of Common % of
Name of Owner Shares Owned Voting Power
------------- ------------- ------------
The Connecticut Light and
Power Company (2)(3)***
Name of Issuer
--------------
CL&P Receivables Corporation (CRC) 100 100
CL&P Capital, L.P. -- 100
CL&P Funding LLC (10) -- 100
Name of Owner
-------------
Public Service Company of New Hampshire (2)(3)
Name of Issuer
--------------
Properties, Inc. (7) 200 100
PSNH Funding LLC (11) -- 100
PSNH Funding LLC 2 (12) -- 100
Name of Owner
-------------
Western Massachusetts Electric Company (2)(3)
Name of Issuer
--------------
WMECO Funding LLC (13) -- 100
4
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2001
(CONTINUED)
Name of Company
--------------- Issuer Owner's
Name of Owner Book Value Book Value
------------- ---------- ----------
(000's) (000's)
The Connecticut Light and
Power Company (2)(3)***
Name of Issuer
--------------
CL&P Receivables Corporation (CRC) $ 111,887 $ 111,887
CL&P Capital, L.P. -- --
CL&P Funding LLC (10) 7,193 7,193
Name of Owner
-------------
Public Service Company of New Hampshire (2)(3)
Name of Issuer
--------------
Properties, Inc. (7) 5,220 5,220
PSNH Funding LLC (11) 3,126 3,126
PSNH Funding LLC 2 (12) 1 1
Name of Owner
-------------
Western Massachusetts Electric Company (2)(3)
Name of Issuer
--------------
WMECO Funding LLC (13) 776 776
5
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2001
(CONTINUED)
Name of Company
--------------- No. of Common % of
Name of Owner Shares Owned Voting Power
------------- ------------- ------------
Holyoke Water Power Company (3)
Name of Issuer
--------------
Holyoke Power and Electric Company (HP&E) 4,850 100
Name of Owner
-------------
Charter Oak Energy, Inc. (9)
Name of Issuer
--------------
COE Development Corporation 100 100
COE Argentina II Corporation 100 100
COE Ave Fenix Corporation 100 100
Name of Owner
-------------
Select Energy Services, Inc.
Name of Issuer
--------------
Select Energy Contracting, Inc. 100 100
HEC Energy Consulting Canada, Inc. (17) 100 100
Reeds Ferry Supply Co., Inc. 100 100
HEC/Tobyhanna Energy Project, Inc. 100 100
Name of Owner
-------------
Northeast Generation Services Company
Name of Issuer
--------------
NGS Mechanical, Inc. (15) 100 100
E. S. Boulos Company (14) 100 100
6
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2001
(CONTINUED)
Name of Company
--------------- Issuer Owner's
Name of Owner Book Value Book Value
--------------- ---------- ----------
(000's) (000's)
Holyoke Water Power Company (3)
Name of Issuer
--------------
Holyoke Power and Electric Company (HP&E) $ 181 $ 181
Name of Owner
-------------
Charter Oak Energy, Inc. (9)
Name of Issuer
--------------
COE Development Corporation 1,087 1,087
COE Argentina II Corporation 29 29
COE Ave Fenix Corporation 12,003 12,003
Name of Owner
-------------
Select Energy Services, Inc.
Name of Issuer
--------------
Select Energy Contracting, Inc. 15,664 15,664
HEC Energy Consulting Canada, Inc. (17) -- --
Reeds Ferry Supply Co., Inc. (42) (42)
HEC/Tobyhanna Energy Project, Inc. 226 226
Name of Owner
-------------
Northeast Generation Services Company
Name of Issuer
--------------
NGS Mechanical, Inc. (15) 9 9
E.S. Boulos Company (14) 10,945 10,945
7
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2001
(CONTINUED)
Name of Company
--------------- No. of Common % of
Name of Owner Shares Owned Voting Power
------------- ------------- ------------
NU Enterprises, Inc.
Name of Issuer
--------------
Northeast Generation Company (NGC) 6 100
Northeast Generation Services
Company (NGS) 100 100
Select Energy Portland Pipeline,
Inc. (SEPPI) 100 100
Select Energy, Inc. (Select Energy) 100 100
Mode 1 Communications, Inc. (Mode 1) 100 100
Select Energy Services, Inc. (SES)* 1,700 100
Name of Company
---------------
Name of Owner
-------------
Yankee Energy System, Inc.
Name of Issuer
--------------
Yankee Gas Services Company
(Yankee Gas) 1,000 100
NorConn Properties, Inc. (NorConn) (7) (8) 100 100
Housatonic Corporation (Housatonic) 100 100
Yankee Energy Financial
Services (YESCO) 200 100
Yankee Energy Services Company (YESCO) 200 100
R.M. Services, Inc. (RMS) (8) 0 0
Name of Company
Name of Owner
-------------
Select Energy, Inc.
Name of Issuer
--------------
Select Energy New York, Inc. (SENY) 10,000 100
8
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2001
(CONTINUED)
Name of Company
--------------- Issuer Owner's
Name of Owner Book Value Book Value
--------------- ---------- ----------
(000's) (000's)
NU Enterprises, Inc.
Name of Issuer
--------------
Northeast Generation Company (NGC) $ 12,951 $ 12,951
Northeast Generation Services
Company (NGS) 13,605 13,605
Select Energy Portland Pipeline,
(SEPPI) Inc. 447 447
Select Energy, Inc. (Select Energy) 22,067 22,067
Mode 1 Communications, Inc. (Mode 1) 24,720 24,720
Select Energy Services, Inc. (SES)* 27,831 27,831
Name of Company
---------------
Name of Owner
-------------
Yankee Energy System, Inc.
Name of Issuer
--------------
Yankee Gas Services Company
(Yankee Gas) 491,793 491,793
NorConn Properties, Inc. (NorConn) (7) 327 327
Housatonic Corporation (Housatonic) (626) (626)
Yankee Energy Financial
Services (YEFSCO) 1,431 1,431
Yankee Energy Services Company (YESCO) 6,231 6,231
R.M. Services, Inc. (RMS) (8) 13,333 13,333
Name of Company
Name of Owner
-------------
Select Energy, Inc. (Select Energy)
Name of Issuer
--------------
Select Energy New York, Inc. (SENY) 5,892 5,892
* Consolidated.
** Inactive.
*** Exempt holding company - see Commission Release Nos. 13048 and 14947.
9
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2001
(CONTINUED)
(1) For information regarding NU's investment in the hydro-transmission
companies, see Note A to Item 1.
(2) For information regarding CL&P's, PSNH's and WMECO's investment in
regional nuclear generating companies, see Note A to Item 1.
(3) Electric utility operating subsidiary.
(4) Service company which provides support services for the NU system
companies.
(5) Prior to the sale of the Millstone nuclear plant to a subsidiary of
Dominion Resources, Inc. on March 31, 2001, agent for the NU system
companies and other New England utilities in operating Millstone. Now
inactive.
(6) Agent for the joint owners in operating the Seabrook nuclear facility.
(7) Subsidiary which constructs, acquires or leases some of the property and
facilities used by one or more of the system companies.
(8) On June 30, 2001, R. M. Services was sold to a management group, and YES
exchanged its 100 percent common stock ownership for preferred securities
having a 10 percent common stock equivalent voting interest.
(9) Directly and through its subsidiaries, COE formerly developed and invested
in cogeneration, small power production and other forms of nonutility
generation and in exempt wholesale generators and foreign utility
companies, as permitted under the Energy Policy Act of 1992. Now inactive.
(10) CL&P Funding LLC (CL&P Funding) is a special purpose limited liability
company whose sole member is CL&P. CL&P Funding was formed on January 3,
2001, under the laws of the State of Delaware, to effect the issuance of
rate reduction bonds (RRBs or notes) intended to finance certain of CL&P's
stranded costs.
(11) PSNH Funding LLC (PSNH Funding) is a special purpose limited liability
company whose sole member is PSNH. PSNH Funding is a wholly owned
subsidiary of PSNH, which is a wholly owned subsidiary of Northeast
Utilities. PSNH Funding was formed on January 24, 2001, under the laws of
the State of Delaware, to effect the issuance of rate reduction bonds
(RRBs) intended to finance certain of PSNH's stranded costs.
(12) PSNH Funding LLC 2 (PSNH Funding 2) is a special purpose limited liability
company whose sole member is PSNH. PSNH Funding was formed on December 10,
2001, under the laws of the State of Delaware, to effect
10
the issuance of additional RRBs intended to finance certain of PSNH's
stranded costs.
(13) WMECO Funding LLC (WMECO Funding) is a special purpose limited liability
company whose sole member is WMECO. WMECO Funding is a wholly owned
subsidiary of WMECO, which is a wholly owned subsidiary of Northeast
Utilities. WMECO Funding was formed on March 28, 2001, under the laws of
the State of Delaware, to effect the issuance of rate reduction bonds
(RRBs or notes) intended to finance certain of WMECO's transition costs.
(14) On January 19, 2001, NGS completed the acquisition of Boulos, an
electrical construction company which specializes in high voltage
electrical construction and maintenance in Maine, Massachusetts, New
Hampshire, and Vermont. Boulos is wholly owned by NGS.
(15) In January 2001, NGS formed a new subsidiary, NGS Mechanical, Inc., to
provide mechanical services initially in certain New England states and
New York. NGS Mechanical is wholly owned by NGS.
(16) On November 30, 2001, Select Energy acquired NMEM for $31.7 million. This
business was subsequently renamed SENY. SENY is a wholly owned subsidiary
of Select Energy and engages in the brokering, marketing, transportation,
storage, and sale of energy commodities in the state of New York.
(17) Dissolved December 31, 2001.
11
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2001
(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. (b) 120,750 34.5% $ 22,194
Maine Yankee Atomic Power Co. (b) 50,976 12.0 7,582
Vermont Yankee Nuclear Power Corp. (c)(d) 37,242 10.1 5,134
Yankee Atomic Electric Co. (b) 1,879 24.5 (214)
Public Service Company of New Hampshire:
Connecticut Yankee Atomic Power Co. (b) 17,500 5.0 3,419
Maine Yankee Atomic Power Co. (b) 21,240 5.0 3,102
Vermont Yankee Nuclear Power Corp. (c)(d) 15,681 4.3 2,088
Yankee Atomic Electric Co. (b) 537 7.0 (100)
Western Massachusetts Electric Company:
Connecticut Yankee Atomic Power Co. (b) 33,250 9.5 6,101
Maine Yankee Atomic Power Co. (b) 12,744 3.0 1,903
Vermont Yankee Nuclear Power Corp. (c)(d) 9,800 2.6 1,357
Yankee Atomic Electric Co. (b) 537 7.0 (61)
Total System Investment:
Connecticut Yankee Atomic Power Co. (b) 171,500 49.0 31,714
Maine Yankee Atomic Power Co. (b) 84,960 20.0 12,587
Vermont Yankee Nuclear Power Corp. (c)(d) 62,723 17.0 8,579
Yankee Atomic Electric Co. (b) 2,953 38.5 (375)
Northeast Utilities:
New England Hydro-Transmission
Electric Company, Inc. 906,324 22.66 9,156
New England Hydro-Transmission Corp. 4,871 22.66 4,439
(b) 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.
(c) In August 2001, Vermont Yankee Nuclear Power Corporation announced it
would sell the unit to an unaffiliated company for $180 million,
12
including $145 million for the plant and materials and supplies and $35
million for the nuclear fuel. The sale requires several regulatory
approvals and is scheduled to close during the first half of 2002.
(d) The ownership interests of CL&P, PSNH and WMECO in VYNPC increased
slightly in early 2002 when VYNPC redeemed the stock owned by certain
Vermont municipal electric systems which had previously owned about five
percent of VYNPC's stock.
ITEM 2. ACQUISITIONS OR SALES OF UTILITY ASSETS
On March 31, 2001, CL&P and WMECO consummated the sale of Millstone 1 and 2 to a
subsidiary of Dominion Resources, Inc., Dominion Nuclear Connecticut, Inc.
(DNCI). CL&P, PSNH and WMECO sold their ownership interests in Millstone 3 to
DNCI. This sale included all of the respective joint ownership interests of
CL&P, PSNH and WMECO in Millstone 3. The NU system received approximately $1.2
billion of cash proceeds from the sale.
In April 2001, CL&P sold its South Meadow Generating Station for total
consideration of $10.4 million.
In April 2001, Properties Inc. sold its March Avenue building for total
consideration of $5.8 million.
In December 2001, Holyoke Water Power Company sold its hydro generating units
and distribution facilities for total consideration of $17.5 million.
In December 2001, CL&P sold its Simsbury Service Center building for total
consideration of $7.2 million.
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, 2001, NU had $9.3 million of such
guarantees outstanding, which was the highest amount outstanding during 2001.
In addition, information relating to the following issuances has been filed on
Form U-6B-2 in accordance with Rule 52:
13
1. On February 6, 2001, HWP, the Massachusetts Industrial Finance Agency and Bay
Bank as trustee, amended the 1992 Letter of Agreement between the parties,
extending the expiration date to December 31, 2001. Form U-6B-2 for this
transaction was filed on February 16, 2001.
2. On October 10, 2001, CL&P, The Bank of New York and certain participating
banks therein amended the Standby Bond Purchase Agreement dated October 24, 2000
to extend its expiration date to October 22, 2002. Form U-6B-2 for this
transaction was filed on October 22, 2001.
3. PSNH, The Business Finance Authority of the State of New Hampshire, and State
Street Bank and Trust Company, as Trustee entered into a Series A Loan and Trust
Agreement, a Series B Loan and Trust Agreement and a Series C Loan and Trust
Agreement, each dated as of October 1, 2001. The proceeds of the 2001 Series A
Bonds will be used to refund the outstanding balance of the Authority's
$66,000,000 7.65% Pollution Control Revenue Bonds (Public Service Company of New
Hampshire Project - 1991 Tax Exempt Series A) and a portion of the outstanding
balance of the Authority's $112,500,000 7.65% Pollution Control Revenue Bonds
(Public Service Company of New Hampshire Project - 1991 Tax Exempt Series C)
(the "1991 Series C Bonds"). The proceeds of the 2001 Series B Bonds will be
used to refund the remaining balance of the 1991 Series C Bonds. The proceeds of
the 2001 Series C Bonds will be used to refund the outstanding balance of the
Authority's $108,985,000 7 1/2% Pollution Control Revenue Bonds (Public Service
Company of New Hampshire Project - 1991 Tax Exempt Series B). Form U-6B-2 for
this transaction was filed on December 27, 2001.
ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES (1)
Amounts Acquired
--------------------------------------------
No. of
Shares or
Name of Issuer and Title of Issue Principal Amount Consideration
--------------------------------- ---------------- -------------
Public Service Company of New Hampshire
Pollution Control Bonds -
1.55% Series A $ 89,250,000 $ 89,250,000
1.55% Series B 89,250,000 89,250,000
5.45% Series C 108,985,000 108,985,000
------------ ------------
$287,485,000 $287,485,000
============ ============
NU Enterprises, Inc. (Consolidated)
First Mortgage Bonds -
4.998% Series A $120,000,000 $120,000,000
8.812% Series B 320,000,000 320,000,000
------------ ------------
$440,000,000 $440,000,000
============ ============
NU Parent
Other Notes/Agreements -
Variable rate note $263,000,000 $263,000,000
============ ============
14
ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES (1)
(CONTINUED)
Amounts Retired/Debt Repayment
--------------------------------------------
No. of
Shares or
Name of Issuer and Title of Issue Principal Amount Consideration
--------------------------------- ---------------- -------------
The Connecticut Light and Power Company
First Mortgage Bonds -
7.8750% Series A $160,000,000 $160,000,000
8.5000% Series C 56,000,000 56,000,000
7.8750% Series D 155,000 155,000
7.7500% Series C 200,000,000 200,000,000
------------ ------------
$416,155,000 $416,155,000
============ ============
Western Massachusetts Electric Company
First Mortgage Bonds -
7.3750% Series B $ 60,000,000 $ 60,000,000
7.7500% Series V 40,000,000 40,000,000
------------ ------------
$100,000,000 $100,000,000
============ ============
Public Service Company of New Hampshire
Other Notes/Agreements -
7.65% Series A $ 66,000,000 $ 66,000,000
7.50% Series B 108,985,000 108,985,000
7.65% Series C 112,500,000 112,500,000
------------ ------------
$287,485,000 $287,485,000
============ ============
NU Enterprises, Inc. (Consolidated)
Other Notes/Agreements -
7.6300% First Union Bank/John Hancock $ 498,000 $ 498,000
============ ============
15
ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES (1)
(CONTINUED)
Amounts Retired/Debt Repayment
--------------------------------------------
No. of
Shares or
Name of Issuer and Title of Issue Principal Amount Consideration
--------------------------------- ---------------- -------------
NU Parent
8.58% Series A Note $ 15,000,000 $ 15,000,000
8.38% Series B Note 6,000,000 6,000,000
------------ ------------
$ 21,000,000 $ 21,000,000
============ ============
The Rocky River Realty Company
Other Notes/Agreements -
7.875% Installment Note (2) $ 1,060,000 $ 1,060,000
6.620% Mortgage Note 84,977 84,977
8.810% Series A Note (3) 1,078,315 1,078,315
------------ ------------
$ 2,223,292 $ 2,223,292
============ =============
North Atlantic Energy Corporation
First Mortgage Bonds -
9.05% Series A $135,000,000 $135,000,000
============ ============
Yankee Energy Systems, Inc.
First Mortgage Bonds -
10.0700% Series AE $ 950,000 $ 950,000
============ ============
Other Notes/Agreements
6.2400% NorConn Properties,
Inc. - Series A-B $ 100,000 $ 100,000
============ ============
Holyoke Water Power Company
Pollution Control Bonds -
Variable rate $ 8,000,000 $ 8,000,000
Variable rate 15,300,000 15,300,000
Variable rate 15,000,000 15,000,000
------------ ------------
$ 38,300,000 $ 38,300,000
============ ============
(1) For acquisitions, redemptions or retirements of system securities, other
than preferred stock, all transactions exempt pursuant to Rule 42(b)(2) or
(4).
(2) Unsecured.
(3) Secured.
16
ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES
Name of Owner Name of Issuer Security Owned (1)
------------- -------------- ------------------
Western Massachusetts Massachusetts Mutual Note
Electric Company Life Insurance
Public Service Company Amoskeag Industries, Inc. Stock
of New Hampshire
Northeast Utilities Connecticut Seed Limited
(Parent) Ventures, Ltc. Partnership
Interest
11 Subsidiaries (2) Various Stock,
Debentures
and Notes
Mode 1 Communications, NEON Communications, Inc. Stock and Notes
Inc. (3)
NU Enterprises, Inc. Acumentrics Corporation Stock
17
ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES (CONTINUED)
% of
Number Voting Carrying
Name of Owner of Shares Power Value to Owners
------------- --------- ---------------
(000's)
Western Massachusetts -- -- $ 190
Electric Company ==========
Public Service Company 1,000 -- $ 100
of New Hampshire ==========
Northeast Utilities -- -- $ 14
(Parent) ==========
11 Subsidiaries (2) -- -- $ 28,291
==========
Mode 1 Communications, 4,124,038 19.3% $ 11,176
Inc. (3) and $15 ==========
million note $ 15,000
==========
NU Enterprises, Inc. 500,000 5% $ 10,000
==========
(1) Recorded at cost on owners' books. Partnership interests are accounted for
under the equity method of accounting.
(2) CL&P, WMECO, HWP, The Quinnehtuk Company, NUSCO, NU Parent, PSNH, Yankee
Energy System, NUEI, HEC and RRR.
(3) NEON's 18 percent subordinated convertible notes are convertible into
2,500,000 additional shares of NEON. On a fully diluted basis, Mode 1's
common share interest and convertible interest in NEON represent 14.1
percent and 8.6 percent of NEON's common stock, respectively.
18
ITEM 6. OFFICERS AND DIRECTORS
Part I. As of December 31, 2001
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
Hartford Steam Boiler Inspection
& Insurance Company
One State Street
Hartford, CT 06102
Cotton Mather Cleveland
Mather Associates
123 Main Street
P.O. Box 935
New London, NH 03257
Sanford Cloud, Jr.
The National Conference for
Community and Justice
475 Park Avenue South, 19th Floor
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
Raymond L. Golden
c/o Northeast Utilities
P.O. Box 270
Hartford, CT 06141-0270
Elizabeth T. Kennan
c/o Northeast Utilities
P. O. Box 270
Hartford, CT 06141-0270
Robert E. Patricelli
Women's Health USA, Inc.
22 Waterville Road
Avon, CT 06001
John F. Swope
c/o Northeast Utilities
P. O. Box 270
Hartford, CT 06141-0270
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).
19
NAMES OF SYSTEM COMPANIES WITH WHICH CONNECTED AS OF DECEMBER 31, 2001
NU NUSCO CL&P
Michael G. Morris CHB, P, CEO, T CH, P, CEO, D
Bruce D. Kenyon PG PG
John H. Forsgren VC, EVP, CFO, T EVP, CFO, D
Cheryl W. Grise PU PU, D D
Gary D. Simon SVP
Kerry J. Kuhlman (1)
Gary A. Long (2)
Leon J. Olivier P, COO, D
Dennis E. Welch
Christopher L. Beschler
David H. Boguslawski VP VP, D
Gregory B. Butler VP, S, GC VP, S, GC
John B. Keane VP
Mary Jo Keating VP
Robert J. Kost VP
Jeffrey R. Kotkin VP
Stephen P. Laden VP
Jean M. LaVecchia VP
John M MacDonald (2)
Keith R. Marvin VP, CIO
David R. McHale VP, TRS VP, TRS
Margaret L. Morton VP
William J. Nadeau (3)
John W. Noyes
Rodney O. Powell VP
Paul E. Ramsey (2)
John J. Roman VP, C VP, C
Lisa J. Thibdaue VP
Richard L. Tower VP
Roger C. Zaklukiewicz VP
Robert A. Bersak (2)
O. Kay Comendul S
Thomas V. Foley (4)
Randy A. Shoop TRS
John P. Stack C
Patricia A. Wood (1)
John C. Collins (5)
Gerald Letendre (6)
Jane E. Newman (7)
James E. Byrne (8)
Paul J. McDonald (9)
Melinda M. Phelps (10)
E. Edward Booker (11)
Eileen S. Kraus (12)
John J. Rando (13)
Patricia M. Worthy (14)
William J. Quinlan
Christopher T. Burt (15)
David O. Taylor (15)
Murry K. Staples (16)
Gregory C. Picklesimer (16)
20
HP&E HWP PSNH
Michael G. Morris P, D P, D C, CEO, D
Bruce D. Kenyon
John H. Forsgren D
Cheryl W. Grise D D D
Gary D. Simon
Kerry J. Kuhlman D D
Gary A. Long P, COO, D
Leon J. Olivier
Dennis E. Welch
Christopher L. Beschler
David H. Boguslawski D D VP, D
Gregory B. Butler
John B. Keane
Mary Jo Keating
Robert J. Kost
Jeffrey R. Kotkin
Steven P. Laden
Jean M. LaVecchia
Keith R. Marvin
John M. MacDonald VP
David R. McHale VP, TRS VP, TRS VP, TRS
Margaret L. Morton
William J. Nadeau VP VP
John W. Noyes
Rodney O. Powell
Paul E. Ramsey VP
John J. Roman VP, C VP, C VP, C
Lisa J. Thibdaue
Richard L. Tower
Roger C. Zaklukiewicz VP VP VP
Robert A. Bersak
O. Kay Comendul S S S
Thomas V. Foley CL CL
Randy A. Shoop
John P. Stack
Patricia A. Wood
John C. Collins D
Gerald Letendre D
Jane E. Newman D
James E. Byrne
Paul J. McDonald
Melinda M. Phelps
E. Edward Booker
Eileen S. Kraus
John J. Rando
Patricia M. Worthy
William J. Quinlan
Christopher T. Burt
David O. Taylor
Murry K. Staples
Gregory C. Picklesimer
21
WMECO Mode 1 PI
Michael G. Morris C, CEO, D P, CEO, D
Bruce D. Kenyon
John H. Forsgren D D
Cheryl W. Grise D
Gary D. Simon 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
John B. Keane
Mary Jo Keating
Robert J. Kost
Jeffrey R. Kotkin
Steven P. Laden
Jean M. LaVecchia
Keith R. Marvin
John M. MacDonald
David R. McHale VP, TRS VP, TRS VP, TRS
Margaret L. Morton
William J. Nadeau
John W. Noyes VP
Rodney O. Powell
Paul E. Ramsey VP, D
John J. Roman VP, C VP, C VP, C
Lisa J. Thibdaue
Richard L. Tower
Roger C. Zaklukiewicz VP
Robert A. Bersak S, D
O. Kay Comendul S
Thomas V. Foley
Randy A. Shoop
John P. Stack
Patricia A. Wood CL
John C. Collins
Gerald Letendre
Jane E. Newman
James E. Byrne D
Paul J. McDonald D
Melinda M. Phelps D
E. Edward Booker
Eileen S. Kraus
John J. Rando
Patricia M. Worthy
William J. Quinlan
Christopher T. Burt
David O. Taylor
Murry K. Staples
Gregory C. Picklesimer
22
Quinn. RRR CRC
Michael G. Morris
Bruce D. Kenyon
John H. Forsgren
Cheryl W. Grise D D D
Gary D. Simon
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
John B. Keane
Mary Jo Keating
Robert J. Kost
Jeffrey R. Kotkin
Steven P. Laden
Jean M. LaVecchia
Keith R. Marvin
John M. MacDonald
David R. McHale VP, TRS VP, TRS
Margaret L. Morton
William J. Nadeau
John W. Noyes
Rodney O. Powell D D
Paul E. Ramsey
John J. Roman VP, C VP, C
Lisa J. Thibdaue
Richard L. Tower
Roger C. Zaklukiewicz VP VP
Robert A. Bersak
O. Kay Comendul S S
Thomas V. Foley
Randy A. Shoop TRS
John P. Stack C
Patricia A. Wood CL
John C. Collins
Gerald Letendre
Jane E. Newman
James E. Byrne
Paul J. McDonald
Melinda M. Phelps
H. Edward Booker D
Eileen S. Kraus
John J. Rando
Patricia M. Worthy
William J. Quinlan
Christopher T. Burt
David O. Taylor
Murry K. Staples
Gregory C. Picklesimer
23
Conn Steam Nutmeg Power EPI
Michael G. Morris
Bruce D. Kenyon
John H. Forsgren
Cheryl W. Grise D D D
Gary D. Simon
Kerry J. Kuhlman
Gary A. Long
Leon J. Olivier
Dennis E. Welch
Christopher L. Beschler
David H. Boguslawski P P P
Gregory B. Butler
John B. Keane
Mary Jo Keating
Robert J. Kost
Jeffrey R. Kotkin
Steven P. Laden
Jean M. LaVecchia
Keith R. Marvin
John M. MacDonald
David R. McHale
Margaret L. Morton
William J. Nadeau
John W. Noyes
Rodney O. Powell
Paul E. Ramsey
John J. Roman
Lisa J. Thibdaue
Richard L. Tower
Roger C. Zaklukiewicz
Robert A. Bersak
O. Kay Comendul S, D S, D S, D
Thomas V. Foley
Randy A. Shoop TRS TRS TRS
John P. Stack C C C
Patricia A. Wood
John C. Collins
Gerald Letendre
Jane E. Newman
James E. Byrne
Paul J. McDonald
Melinda M. Phelps
Eileen S. Kraus
John J. Rando
Patricia M. Worthy
H. Edward Booker
William J. Quinlan D D D
Christopher T. Burt
David O. Taylor
Murry K. Staples
Gregory C. Picklesimer
24
CL&P Cap. (22) YES YEFSCO
Michael G. Morris C, CEO, D C, CEO, D
Bruce D. Kenyon
John H. Forsgren EVP, CFO, D EVP, CFO, D
Cheryl W. Grise D
Gary D. Simon
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 VP, S, GC VP, S, GC
John B. Keane
Mary Jo Keating
Robert J. Kost
Jeffery R. Kotkin
Steven P. Laden
Jean M. LaVecchia
Keith R. Marvin
John M. MacDonald
David R. McHale VP, TRS VP, TRS
Margaret L. Morton
William J. Nadeau
John W. Noyes
Rodney O. Powell
Paul E. Ramsey
John J. Roman VP, C VP, C
Lisa J. Thibdaue
Richard L. Tower
Roger C. Zaklukiewicz
Robert A. Bersak
O. Kay Comendul
Thomas V. Foley
Randy A. Shoop
John P. Stack
Patricia A. Wood
John C. Collins
Gerald Letendre
Jane E. Newman
James E. Byrne
Paul J. McDonald
Melinda M. Phelps
E. Edward Booker
Eileen S. Kraus D
John J. Rando D
Patricia M. Worthy D
William J. Quinlan
Christopher T. Burt
David O. Taylor
Murry K. Staples
Gregory C. Picklesimer
25
YGSCO YESCO NORCONN
Michael G. Morris C, CEO, D C, CEO, D C, CEO, D
Bruce D. Kenyon
John H. Forsgren EVP, CFO, D EVP, CFO, D EVP, CFO, D
Cheryl W. Grise
Gary D. Simon
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 VP, S, GC VP, S, GC VP, S, GC
John B. Keane
Mary Jo Keating
Robert J. Kost
Jeffrey R. Kotkin
Steven P. Laden
Jean M. LaVecchia
Keith R. Marvin
John M. MacDonald
David R. McHale VP, TRS VP, TRS VP, TRS
Margaret L. Morton
William J. Nadeau
John W. Noyes
Rodney O. Powell
Paul E. Ramsey
John J. Roman VP, C VP, C VP, C
Lisa J. Thibdaue
Richard L. Tower
Roger C. Zaklukiewicz
Robert A. Bersak
O. Kay Comendul
Thomas V. Foley
Randy A. Shoop
John P. Stack
Patricia A. Wood
John C. Collins
Gerald Letendre
Jane E. Newman
James E. Byrne
Paul J. McDonald
Melinda M. Phelps
E. Edward Booker
Eileen S. Kraus
John J. Rando
Patricia M. Worthy
William J. Quinlan
Christopher T. Burt
David O. Taylor
Murry K. Staples
Gregory C. Picklesimer
26
YEMCO RMS CLP FUNDING (23)
Michael G. Morris C, CEO, D
Bruce D. Kenyon
John H. Forsgren EVP, CFO, D
Cheryl W. Grise
Gary D. Simon
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 VP, S, GC
John B. Keane
Mary Jo Keating
Robert J. Kost
Jeffrey R. Kotkin
Steven P. Laden
Jean M. LaVecchia
Keith R. Marvin
John M. MacDonald
David R. McHale VP, TRS
Margaret L. Morton
William J. Nadeau
John W. Noyes
Rodney O. Powell D, MC
Paul E. Ramsey
John J. Roman VP, C
Lisa J. Thibdaue
Richard L. Tower
Roger C. Zaklukiewicz
Robert A. Bersak
O. Kay Comendul S
Thomas V. Foley
Randy A. Shoop P, D, MC
John P. Stack VP, TRS
Patricia A. Wood
John C. Collins
Gerald Letendre
Jane E. Newman
James E. Byrne
Paul J. McDonald
Melinda M. Phelps
E. Edward Booker
Eileen S. Kraus
John J. Rando
Patricia M. Worthy
William J. Quinlan
Christopher T. Burt D, MC
David O. Taylor D, MC
Murry K. Staples P, CEO, D
Gregory C. Picklesimer S, TRS
27
PSNH FUNDING (24) PSNH FUNDING 2 (24) WMECO FUNDING (25)
Michael G. Morris
Bruce D. Kenyon
John H. Forsgren
Cheryl W. Grise
Gary D. Simon
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
John B. Keane
Mary Jo Keating
Robert J. Kost
Jeffrey R. Kotkin
Steven P. Laden
Jean M. LaVecchia
Keith R. Marvin
John M. MacDonald
David R. McHale
Margaret L. Morton
William J. Nadeau
John W. Noyes
Rodney O. Powell
Paul E. Ramsey D, MC D, MC
John J. Roman
Lisa J. Thibdaue
Richard L. Tower
Roger C. Zaklukiewicz
Robert A. Bersak
O. Kay Comendul S S S
Thomas V. Foley
Randy A. Shoop P, D, MC P, D, MC P, D, MC
John P. Stack VP, TRS VP, TRS VP, TRS
Patricia A. Wood
John C. Collins
Gerald Letendre
Jane E. Newman
James E. Byrne
Paul J. McDonald
Melinda M. Phelps
E. Edward Booker
Eileen S. Kraus
John J. Rando
Patricia M. Worthy
William J. Quinlan
Christopher T. Burt D, MC D, MC
David O. Taylor D, MC D, MC
Murry K. Staples
Gregory C. Picklesimer
28
COE COE Argen II COE Ave Fenix
Bruce D. Kenyon P, D P, D P, D
Dennis G. Morrissette (17)
William W. Schivley
Ted C. Feigenbaum (18)
James B. Redden (19)
Armando J. Barone (17)
Joseph F. Bellefeuille (17)
Paul J. Bohonowicz (17)
H. Donald Burbank (19)
James J. Cifaratta
Richard J. Cohen
David S. Dayton (19)
Annette M. Durnack
Stephen J. Fabiani
Linda A. Jensen (19)
John B. Keane
Stephen E. Mehennitt
William J. Nadeau (3) D D D
Marcus A. Overdyk
John W. Noyes
Frank P. Sabatino VP, D VP, D VP, D
Jeffrey M. Warren (17)
Carol L. Carver (19)
Christopher Fogarty (17)
Michelle D. Gouin S S S
Frederic Lee Klein
Dennis R. Brown (3)
Thomas M. Driscoll
Gene F. St. Pierre
Richard H. Kacich
Michael A. Paolella
A. John Stremlaw (20)
Neil Petchers (21)
Eileen Martinsky (21)
Britta MacIntosh (19)
Scott Silver (21)
29
COE Develop SESI HEC Canada
Bruce D. Kenyon P, D
Dennis G. Morrissette
William W. Schivley CHB, D
Ted C. Feigenbaum
James B. Redden P, D P
Armondo J. Barone
Joseph F. Bellefeuille
Paul J. Bohonowicz
H. Donald Burbank VP VP
James J. Cifaratta
Richard J. Cohen
David S. Dayton VP, D VP
Annette M. Durnack
Stephen J. Fabiani
Linda A. Jensen VP, TRS, CL VP, TRS, S
John B. Keane
Stephen E. Mehennitt
William J. Nadeau D
John W. Noyes
Marcus A. Overdyk
Frank P. Sabatino VP, D
Jeffrey M. Warren
Carol L. Carver
Christopher Fogarty
Michelle D. Gouin S
Frederic Lee Klein
Dennis R. Brown
Thomas M. Driscoll
Gene F. St. Pierre
Richard H. Kacich
Michael A. Paolella
A. John Stremlaw D
Neil Petchers
Eileen Martinsky
Britta MacIntosh
Scott Silver
30
ERI/HEC (26) HTEP RFS
Bruce D. Kenyon
Dennis G. Morrissette P, D
William W. Schivley
Ted C. Feigenbaum
James B. Redden VC, MC P, D D
Armando J. Barone
Joseph F. Bellefeuille SVP
Paul J. Bohonowicz
H. Donald Burbank
James J. Cifaratta
Richard J. Cohen
David S. Dayton D
Annette M. Durnack
Stephen J. Fabiani D
Linda A. Jensen TRS VP, TRS, CL TRS
John B. Keane
Steven E. Mehennitt
William J. Nadeau
John W. Noyes
Marcus A. Overdyk
Frank P. Sabatino
Jeffrey M. Warren VP
Carol L. Carver S
Christopher Fogarty
Michelle D. Gouin
Frederic Lee Klein
Dennis R. Brown
Thomas M. Driscoll
A. John Stremlaw
Gene F. St. Pierre
Michael A. Paolella
Richard H. Kacich
Neil Petchers CH, MC
Eileen Martinsky S
Britta MacIntosh MC
Scott Silver MC
31
NEI NGC NGS
Bruce D. Kenyon P, D P, D P, CEO, D
Dennis G. Morrissette
William W. Schivley VP, D D
Ted C. Feigenbaum
James B. Redden
Armando J. Barone
Joseph F. Bellefeuille
Paul J. Bohonowicz
H. Donald Burbank
James J. Cifaratta
Richard J. Cohen
David S. Dayton
Annette M. Durnack
Stephen J. Fabiani
Linda A. Jensen
John B. Keane
Stephen E. Mehennitt
William J. Nadeau VP, D VP, COO, D
John W. Noyes
Marcus A. Overdyk
Frank P. Sabatino VP, D VP, D
Jeffrey M. Warren
Carol L. Carver
Christopher Fogarty
Michelle D. Gouin S S S
Frederic Lee Klein
Dennis R. Brown D
Thomas M. Driscoll
Gene F. St. Pierre
Richard H. Kacich
Michael A. Paolella
A. John Stremlaw
Neil Petchers
Eileen Martinsky
Britta MacIntosh
Scott Silver
32
NAEC NAESCO NNECO
Bruce D. Kenyon P, CEO, D P, CEO, D P, CEO, D
Dennis G. Morrissette
William W. Schivley
Ted C. Feigenbaum EVP, CNO, D EVP, CNO, D
James B. Redden
Armando J. Barone
Joseph F. Bellefeuille
Paul J. Bohonowicz
H. Donald Burbank
James J. Cifaratta
Richard J. Cohen
David S. Dayton
Annette M. Durnack
Stephen J. Fabiani
Linda A. Jensen
John B. Keane VP, D
Stephen E. Mehennitt
William J. Nadeau
John W. Noyes
Marcus A. Overdyk
Frank P. Sabatino
Jeffrey M. Warren
Carol L. Carver
Christopher Fogarty
Michelle D. Gouin S S S
Frederic Lee Klein
Dennis R. Brown
Thomas M. Driscoll
Gene F. St. Pierre D D
Richard M. Kacich D
Michael A. Paolella
A. John Stremlaw
Neil Petchers
Eileen Martinsky
Britta MacIntosh
Scott Silver
33
Select SEPPI SECI
Bruce D. Kenyon P, D
Dennis G. Morrissette PNH, D
William W. Schivley P, D D
Ted C. Feigenbaum
James B. Redden CHB, D
Armando J. Barone VP
Joseph F. Bellefeuille SVP
Paul J. Bohonowicz VP
H. Donald Burbank PCT
James J. Cifaratta
Richard J. Cohen
David S. Dayton
Annette M. Durnack
Stephen J. Fabiani VP, D VP, D D
Linda A. Jensen TRS
John B. Keane
Stephen E. Mehennitt VP
William J. Nadeau VP, D
John W. Noyes
Marcus A. Overdyk
Frank P. Sabatino SVP, D
Jeffrey M. Warren VP
Carol L. Carver CL
Christopher Fogarty C
Michelle D. Gouin S S
Frederic Lee Klein
Dennis R. Brown
Thomas M. Driscoll
Gene F. St. Pierre
Richard M. Kacich
Michael A. Paolella
A. John Stremlaw
Neil Petchers
Eileen Martinsky
Britta MacIntosh
Scott Silver
34
ESB NGSM SENY
Bruce D. Kenyon P, CEO, D P, CEO, D
Dennis G. Morrissette
William W. Schivley P, D
Ted C. Feigenbaum
James B. Redden
Armando J. Barone
Joseph F. Bellefeuille
Paul J. Bohonowicz
H. Donald Burbank
James J. Cifaratta VP
Richard J. Cohen VP
David S. Dayton
Annette M. Durnack VP
Stephen J. Fabiani D
Linda A. Jensen
John B. Keane
Stephen E. Mehennitt
William J. Nadeau VP, COO, D VP, COO, D
John W. Noyes TRS
Marcus A. Overdyk VP
Frank P. Sabatino D
Jeffrey M. Warren
Carol L. Carver
Christopher Fogarty
Michelle D. Gouin S S
Frederic Lee Klein S
Dennis R. Brown
Thomas M. Driscoll D
Gene F. St. Pierre
Richard M. Kacich
Michael A. Paolella D
A. John Stremlaw
Neil Petchers
Eileen Martinsky
Britta MacIntosh
Scott Silver
35
The principal business address of the individuals listed above is 107 Selden
Street, Berlin, Connecticut 06037, except as otherwise noted.
(1) Principal business address is: Western Massachusetts Electric Company, 174
Brush Hill Avenue, West Springfield, Massachusetts 01089.
(2) Principal business address is: Public Service Company of New Hampshire,
780 N. Commercial Street, Manchester, New Hampshire 03101.
(3) Principal business address is: Northeast Generation Services Company, 273
Dividend Road, Rocky Hill, Connecticut 06067.
(4) Principal business address is: Holyoke Water Power Company, 174 Brush Hill
Avenue, West Springfield, Massachusetts 01089.
(5) Mr. Collins' principal business address is: The Hitchcock Clinic, One
Medical Center Drive, Lebanon, New Hampshire 03756.
(6) Mr. Letendre's principal business address is: Diamond Casting & Machine
Co., Inc., P.O. Box 420, Route 130, Hollis, New Hampshire 03049.
(7) Ms. Newman's principal business address is: John F. Kennedy School of
Government, Harvard University, 79 JFK Street, Cambridge, Massachusetts
02138.
(8) Mr. Byrne's principal business address is: Finneran, Byrne & Dreschler,
L.L.P, Eastern Harbor Office Park, 50 Redfield Street, Boston,
Massachusetts 02122.
(9) Mr. McDonald's principal business address is: 2205 Boston Road, N-128,
Wilbraham, Massachusetts 01095.
(10) Ms. Phelps' principal business address is: Bulkley, Richardson and
Gelinas, LLP, 1500 Main Street, Suite 2700, P. O. Box 15507, Springfield,
Massachusetts 01115.
(11) Mr. Booker's principal business address is: AMACAR Group, 6525 Morrison
Boulevard, Suite 318, Charlotte, North Carolina 28211
(12) Ms. Kraus' principal business address is: 209 Tunxis Road, West Hartford,
Connecticut 06107.
(13) Mr. Rando's principal business address is: 165 Little Harbor Road, P. O.
Box 2011, New Castle, New Hampshire 03854.
(14) Ms. Worthy's principal business address is: Howard University School of
Law, 2900 Van Ness Street, N. W., Washington, D. C. 20008.
(15) Messrs. Burt and Taylor's principal business address is: Global
Securitization Services, LLC, 114 West 47th Street, Suite 1715, New York,
New York 10036.
(16) Principal business address is: R. M. Services, Inc., 222 Pitkin Street,
East Hartford, Connecticut 06108.
36
(17) Principal business address is: Select Energy Contracting, Inc., 605 Front
Street, Manchester, New Hampshire 03102.
(18) Principal business address is: North Atlantic Energy Service Corporation,
1 Lafayette Road, Route 1, Seabrook, New Hampshire 03874.
(19) Principal business address is: Select Energy Services, Inc., 24 Prime
Parkway, Natick, Massachusetts 01760.
(20) Mr. Stremlaw's principal business address is: 242 Simcoe Street,
Niagra-on-the-Lake, Ontario Canada, L0S 1J0.
(21) Principal business address is: ERI Services, Inc., 350 Fairfield Avenue,
Bridgeport, Connecticut 06604.
(22) CL&P Capital is a partnership in which CL&P serves as general partner.
(23) CLP Funding LLC is a Delaware limited liability company formed to issue
rate reduction bonds. CL&P is the sole member.
(24) 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.
(25) WMECO Funding LLC is a Delaware limited liability company formed to issue
rate reduction bonds. WMECO is the sole member.
(26) 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.
KEY:
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
PG - President - Generation Group
37
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.
COE Argen II - COE Argentina II Corp.
COE Ave Fenix - COE Ave Fenix Corporation
COE Develop - COE Development Corporation
Conn Steam - The Connecticut Steam Company
CRC - CL&P Receivables Corporation
EPI - Electric Power, Incorporated
ERI/HEC - ERI/HEC EFA-Med, LLC
HEC Canada - HEC Energy Consulting Canada Inc.
HWP - Holyoke Water Power Company
Mode 1 - Mode 1 Communications, Inc.
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
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.
SEPPI - Select Energy Portland Pipeline, Inc.
SESI - Select Energy Services, Inc.
WMECO - Western Massachusetts Electric Company
WMECO Funding - WMECO Funding LLC
YES - Yankee Energy System, Inc.
YEFSCO - Yankee Energy Financial Services Company
YESCO - Yankee Energy Services Company
YGSCO - Yankee Gas Services Company
38
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)
Michael G. Morris Webster Financial Director A, E, F
Corporation
Waterbury, CT
John H. Forsgren Circle Trust Company Director A, E, F
Connecticut
Cotton Mather Ledyard National Bank Director A
Cleveland Ledyard, New Hampshire
James Cordes Comerica Bank, Texas Director A
Thomas V. Foley Hampden Savings Bank Trustee F
Springfield, MA
"A" designates Rule 70(b)(1), (2), (3) and (4);
"B" designates Rule 70(c)(1) and (2);
"C" designates Rule 70(d)(1), (2), (3) and (4);
"D" designates Rule 70(e)(1) and (2); and
"E" designates Rule 70(f)(1) and (2); and (2).
39
ITEM 6. OFFICERS AND DIRECTORS (Continued)
Part III. The information provided herein is applicable to all system companies,
except as indicated otherwise.
a. Compensation of Trustees, Directors, and Executive Officers
During 2001, each Trustee who was not an employee of NU or its
subsidiaries was compensated at an annual rate of $20,000 cash plus 500 common
shares of NU, and received $1,000 for each meeting attended of the Board or its
Committees. Effective January 1, 2002, the annual payment of 500 shares was
increased to 1,000 shares. A non-employee Trustee who participates in a meeting
of the Board or any of its Committees by conference telephone receives $675 per
meeting. Also, a non-employee Trustee who is asked by either the Board of
Trustees or the Chairman of the Board to perform extra services in the interest
of the NU system may receive additional compensation of $1,000 per day plus
necessary expenses. The Chairs of the Audit, the Compensation, the Corporate
Affairs, the Corporate Governance, the Finance and the Nuclear Committees were
compensated at an additional annual rate of $3,500. In addition to the above
compensation, Dr. Kennan is paid at the annual rate of $30,000 for the extra
services performed as Lead Trustee. The Chair of the Nuclear Committee receives
an additional retainer at the rate of $25,000 per year.
Under the terms of the Incentive Plan adopted by shareholders at the 1998
Annual Meeting, each non-employee Trustee is eligible for stock-based grants.
During 2001 each such Trustee was granted nonqualified options to purchase 2,500
common shares of NU. Receipt of shares acquired on exercise of these options may
be deferred pursuant to the terms of the Northeast Utilities Deferred
Compensation Plan for Executives. In February 2002 each non-employee Trustee was
granted non-qualified options to purchase 2,500 common shares.
Prior to the beginning of each calendar year, each non-employee Trustee
may irrevocably elect to have all or any portion of the annual retainer fee paid
in the form of common shares of NU. 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.
During 2001 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 participates in a meeting of the Board of Directors or
any of its committees by conference telephone receives $300 per meeting. Also,
committee chairs were compensated at an additional annual rate of $1,500.
Section 16(a) Beneficial Ownership Reporting Compliance
Section 16(a) of the Securities Exchange Act of 1934 requires Trustees and
certain officers of NU and persons who beneficially own more than 10 percent of
the outstanding common shares of NU to file reports of ownership and changes in
ownership with the SEC and the New York Stock Exchange. Based on review of
copies of such forms furnished to NU, or written representations that no Form 5
was required, NU believes that for the year ended December 31,
40
2001, all such reporting requirements were complied with in a timely manner
except that Mrs. Grise and Mr. Kenyon each reported the exercise of stock
appreciation rights in September, 2001 on their Form 5 for 2001 rather than on a
Form 4 for September 2001.
41
SUMMARY COMPENSATION TABLE
CL&P, PSNH, WMECO, NGC
The following tables present the cash and non-cash compensation received
by the Chief Executive Officer and the next four highest paid executive officers
of CL&P, PSNH, WMECO and NGC accordance with rules of the Securities and
Exchange Commission (SEC):
Annual Compensation Long Term Compensation
Awards Payouts
Securities Long
Other Restrict- Underlying Term All
Annual ed Stock Options/ Incentive Other
Compensa- Award(s) Stock Program Compen-
Name and Salary tion($) ($) Appreciation Payouts sation($)
Principal Position Year ($) Bonus($) (Note 1) (Note 2) Rights (#) ($) (Note 3)
Michael G. Morris 2001 900,000 869,805 -- -- 220,000 -- 27,000
Chairman of the
Board, President 2000 830,770 1,200,000 -- -- 140,000 -- 27,236
and Chief Executive
Officer of NU and 1999 783,173 1,253,300 92,243 348,611 118,352 -- 23,210
Chairman and Chief
Executive Officer of
PSNH and WMECO
John H. Forsgren 2001 524,423 200,000 -- -- 98,000 -- 5,100
Vice Chairman,
Executive Vice
President and 2000 444,615 450,000 -- -- 36,000 -- 5,100
Chief Financial
Officer of NU 1999 429,904 400,000 -- 122,682 32,852 87,003 12,888
Bruce D. Kenyon 2001 515,000 150,000 -- -- 34,000 -- 15,450
President -
Generation Group 2000 504,616 475,000 -- -- 20,000 -- 16,274
of NU and President
of NGC (in NGC table 1999 500,000 -- -- 77,690 20,804 462,500 15,000
only)
42
Cheryl W. Grise 2001 338,654 180,000 -- -- 76,000 -- 10,119
President -
Utility Group of NU 2000 279,616 290,000 -- -- 23,000 -- 8,795
(in CL&P, PSNH and
WMECO tables only) 1999 244,712 250,000 -- 73,612 19,712 -- 82,247
Gary D. Simon 2001 236,539 70,000 -- -- 14,000 -- 7,096
Senior Vice
President - 2000 231,539 200,000 -- -- 18,000 -- 6,946
Enterprise
Development and 1999 226,635 200,000 -- 61,333 16,424 -- 4,982
Analysis of NUSCO
(in NGC table only)
Gregory B. Butler 2001 189,269 70,000 -- -- 7,600 -- 5,100
Vice President,
Secretary and 2000 174,462 105,000 -- -- 9,000 72,995 5,100
General Counsel of
NU and NUSCO 1999 168,635 94,000 -- 31,892 8,540 -- 4,800
Lisa J. Thibdaue 2001 193,539 60,000 -- -- 8,500 -- 5,100
Vice President -
Rates, Regulatory 2000 187,154 115,000 -- -- 9,500 -- 5,100
Affairs and
Compliance of NUSCO 1999 181,635 112,000 -- 30,667 8,212 -- 4,800
(in CL&P, PSNH and
WMECO tables only)
43
OPTION/SAR GRANTS IN LAST FISCAL YEAR
Individual Grants Grant Date Value
Number of % of Total
Securities Options/SARs
Underlying Granted to Exercise or Grant Date
Options/SARs Employees Base Price Expiration Present
Name Granted (#) in Fiscal Year ($/sh) Date Value ($)
Michael G. Morris 120,000 14.47 21.03 2/27/2011 1,006,800 (Note 4)
100,000 12.06 20.06 6/28/2011 803,000 (Note 5)
John H. Forsgren 33,000 3.98 21.03 2/27/2011 276,870 (Note 4)
65,000 7.84 20.06 6/28/2011 521,950 (Note 5)
Bruce D. Kenyon 34,000 4.10 21.03 2/27/2011 228,745 (Note 4)
Cheryl W. Grise 26,000 3.14 21.03 2/27/2011 218,140 (Note 4)
50,000 6.03 20.06 6/28/2011 401,500 (Note 5)
Gary D. Simon 14,000 1.69 21.03 2/27/2011 117,460 (Note 4)
Gregory B. Butler 7,600 0.92 21.03 2/27/2011 63,764 (Note 4)
Lisa J. Thibdaue 8,500 1.03 21.03 2/27/2011 71,315 (Note 4)
44
AGGREGATED OPTIONS/SAR EXERCISES IN LAST
FISCAL YEAR AND FY-END OPTION/SAR VALUES
Shares With
Respect to Number of Securities Value of Unexercised
Which Underlying Unexercised In-the-Money
SARs Were Value Options/SARs Options/SARs
Exercised Realized at Fiscal Year End (#) at Fiscal Year End ($)
Name (#) ($) Exercisable Unexercisable Exercisable Unexercisable
Michael G. Morris -- -- 698,475 344,451 4,256,831 83,783
John H. Forsgren 50,471 326,800 107,085 132,950 155,390 29,483
Bruce D. Kenyon 38,253 260,312 41,772 54,268 65,323 18,670
Cheryl W. Grise 24,490 166,654 33,724 97,904 52,402 17,690
Gary D. Simon -- -- 73,198 50,226 170,384 61,713
Gregory B. Butler -- -- 15,868 16,448 24,783 7,666
Lisa J. Thibdaue -- -- 16,172 17,572 24,665 7,369
Notes to Summary Compensation and Option/SAR Grants Tables:
1. Other annual compensation for Mr. Morris consists of 1999 relocation
expense reimbursements.
2. At December 31, 2001, the aggregate restricted stock holdings by the
five individuals named in the table for CL&P, WMECO and PSNH were
13,556 shares with a value of $238,992 and for NGC were 14,332
shares with a value of $252,673. Awards shown for 1999 vested
one-third on February 23, 2000, one-third on February 23, 2001, and
one-third on February 23, 2002. No restricted stock was awarded in
2001. Dividends paid on restricted stock are either paid out or
reinvested into additional shares.
45
3. "All Other Compensation" for 2001 consists of employer matching
contributions under the Northeast Utilities Service Company 401k
Plan, generally available to all eligible employees ($5,100 for each
named officer), and matching contributions under the Deferred
Compensation Plan for Executives (Mr. Morris - $21,900, Mrs. Grise -
$5,019, Mr. Kenyon - $10,350, Mr. Simon - $1,996).
4. These options were granted on February 27, 2001 under the Incentive
Plan. All options granted vest one-third on February 27, 2002,
one-third on February 27, 2003 and one-third on February 27, 2004.
Valued using the Black-Scholes option pricing model, discounted by
5.71% to reflect the risk of forfeiture, with the following
assumptions: Volatility: 25.96 percent (36 months of monthly data);
Risk-free rate: 5.23 percent; Dividend yield: 0.94 percent; Exercise
date: February 27, 2011.
5. These options were granted on June 28, 2001 under the Incentive
Plan. All options granted vest one-third on June 28, 2002, one-third
on June 28, 2003 and one-third on June 28, 2004. Valued using the
Black-Scholes option pricing model, discounted by 5.71% to reflect
the risk of forfeiture, with the following assumptions: Volatility:
26.38 percent (36 months of monthly data); Risk-free rate: 5.63
percent; Dividend yield: 1.12 percent; Exercise date: June 28, 2011.
46
PENSION BENEFITS
The tables on the following pages 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. Forsgren and Mrs. Grise are currently eligible for a make-whole plus a
target benefit. Messrs. Kenyon, Simon, and Butler and Ms. Thibdaue are eligible
for the make-whole benefit but not the target benefit.
Mr. Kenyon's Employment Agreement provides specially calculated retirement
benefits, based on his previous arrangement with South Carolina Electric and
Gas, which supplement his make-whole benefit under the Supplemental Plan. If Mr.
Kenyon retires with at least three years of service with the Company, he will be
deemed to have two extra years of service for purpose of his special retirement
benefit. If after achieving three years of service he voluntarily terminates
employment following a "substantial change in responsibilities resulting from a
material change in the business of Northeast Utilities," he will be deemed to
have an additional year of service for purpose of his special retirement
benefit, and if he retires with at least three years of service with the
Company, he will receive a lump sum payment of $500,000. Mr. Kenyon has met
these service-related milestones.
Mr. Morris's Employment Agreement provides that upon retirement after
reaching the fifth anniversary of his employment date (or upon disability or
termination without cause or following a change of control, as defined) 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. If Mr. Morris retires after age 60, his special retirement benefit will 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.
Mr. Forsgren's Employment Agreement provides for supplemental pension
benefits based on crediting up to ten years additional service and providing
payments equal to 25 percent of salary for up to 15 years following
47
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.
ANNUAL BENEFIT FOR OFFICERS ELIGIBLE FOR MAKE-WHOLE BENEFIT
Final
Average
Compensation Years of Credited Service
15 20 25 30 35
$ 200,000 $ 43,605 $ 58,139 $ 72,674 $ 87,209 $101,744
250,000 54,855 73,139 91,424 109,709 127,994
300,000 66,105 88,139 110,174 132,209 154,244
350,000 77,355 103,139 128,924 154,709 180,494
400,000 88,605 118,139 147,674 177,209 206,744
450,000 99,855 133,139 166,424 199,709 232,994
500,000 111,105 148,139 185,174 222,209 259,244
600,000 133,605 178,139 222,674 267,209 311,744
700,000 156,105 208,139 260,174 312,209 364,244
800,000 178,605 238,139 297,674 357,209 416,744
900,000 201,105 268,139 335,174 402,209 469,244
1,000,000 223,605 298,139 372,674 447,209 521,744
1,100,000 246,105 328,139 410,174 492,209 574,244
1,200,000 268,605 358,139 447,674 537,209 626,744
48
ANNUAL BENEFIT FOR OFFICERS ELIGIBLE FOR
MAKE-WHOLE PLUS TARGET BENEFIT
Final
Average
Compensation Years of Credited Service
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
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 takes into
account the annual compensation shown in the Summary Compensation Table and long
term incentive compensation but 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.
As of December 31, 2001, the executive officers named in the Summary
Compensation Table had the following years of credited service for purposes of
the Supplemental Plan: Mr. Kenyon - 7, Mr. Forsgren - 5, Mrs. Grise - 21, Mr.
Simon - 3, Mr. Butler - 5, and Ms. Thibdaue - 4. Mr. Morris had 23 years of
service for purposes of his special retirement benefit. In addition, Mr.
Forsgren had 10 years of service for purposes of his supplemental pension
benefit and would have 25 years of service for such purpose if he were to retire
at age 65.
49
EMPLOYMENT CONTRACTS AND TERMINATION OF EMPLOYMENT ARRANGEMENTS
Northeast Utilities has entered into an employment agreement with Mr.
Morris and Northeast Utilities Service Company (NUSCO) has entered into
employment agreements with each of the other named executive officers except
Messrs. Simon and Butler and Ms. Thibdaue, who 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
each majority-owned subsidiary of Northeast Utilities.
Each agreement obligates 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, and refrain, while
employed by the Company and for a period of time thereafter, from competing with
the Company in a specified geographic area. Each agreement provides that the
officer's base salary will not be reduced below certain levels without the
consent of the officer, and that the officer will participate in specified
benefits under the Supplemental Executive Retirement Plan or other supplemental
retirement programs (see Pension Benefits, above) and/or in certain executive
incentive programs at specified incentive opportunity levels.
Each agreement provides 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 stock appreciation rights, options and restricted stock.
Under the terms of the 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 annual base salary, 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,
Kenyon and Forsgren provide for a specified salary, cash, restricted stock
and/or stock options upon employment, special incentive programs and/or special
retirement benefits. See Pension Benefits, above, for further description of
these provisions. The agreements of Mr. Forsgren and Mrs. Grise were
supplemented during 2001 to provide for special deferred
50
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. Simon and
Butler and Ms. Thibdaue provide for specified salary, cash, restricted stock or
stock options upon employment.
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.
b. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table provides information as of February 27, 2002, as to
the beneficial ownership of the equity securities of NU by each Trustee, each of
the five highest paid executive officers of NU and its subsidiaries, and
Directors and executive officers of system companies. Unless otherwise noted,
each Trustee, Director and executive officer has sole voting and investment
power with respect to the listed shares. No equity securities of other system
companies are owned by Trustees, Directors or executive officers.
Amount and
Nature of
Title of Beneficial Percent of
Class Name Ownership Class (1)
NU Common David H. Boguslawski 30,349 (2)
NU Common Richard H. Booth 4,750 (3)
NU Common Gregory B. Butler 33,969 (4)
NU Common James E. Byrne 0
NU Common Cotton Mather Cleveland 15,982 (5)
NU Common Sanford Cloud, Jr. 15,487 (6)
NU Common John C. Collins 0
NU Common James F. Cordes 10,250 (3)
NU Common E. Gail de Planque 15,971 (5)
NU Common John H. Forsgren 149,132 (7)
NU Common Raymond L. Golden 16,710 (8)
NU Common Cheryl W. Grise 78,813 (9)
NU Common Elizabeth T. Kennan 17,100 (5)
NU Common Bruce D. Kenyon 133,710 (10)
NU Common Kerry J. Kuhlman 20,565 (11)
NU Common Gerald Letendre 0
NU Common Gary A. Long 18,784 (12)
NU Common Paul J. McDonald 500
NU Common Michael G. Morris 890,925 (13)
NU Common William J. Nadeau 17,709 (14)
NU Common Jane E. Newman 0
NU Common Leon J. Olivier 0
NU Common Robert E. Patricelli 22,451 (5)
NU Common Melinda M. Phelps 0
NU Common Frank P. Sabatino 56,734 (15)
NU Common William W. Schivley 44,357 (16)
NU Common Gary D. Simon 114,081 (17)
NU Common Lisa J. Thibdaue 30,713 (18)
NU Common John F. Swope 20,101 (5)
51
(1) As of February 27, 2002, there were 133,748,279 common shares of NU
outstanding. The percentage of such shares beneficially owned by any
Director or Executive Officer, and by all Directors and Executive Officers
of CL&P, PSNH, WMECO and NGC as a group, equals 1.31 percent.
(2) Includes 24,016 shares that could be acquired by Mr. Boguslawski pursuant
to currently exercisable options and 462 shares held under the Northeast
Utilities Employee Share Purchase Plan II as to which Mr. Boguslawski has
sole voting but no dispositive power.
(3) Includes 3,750 shares that could be acquired by the beneficial owner
pursuant to currently exercisable options.
(4) Includes 24,249 shares that could be acquired by Mr. Butler pursuant to
currently exercisable options and 796 shares held in an ESOP as to which
Mr. Butler has sole voting power but no dispositive power.
(5) Includes 11,250 shares that could be acquired by the beneficial owner
pursuant to currently exercisable options.
(6) Includes 6,250 shares that could be acquired by Mr. Cloud pursuant to
currently exercisable options.
(7) Includes 141,035 shares that could be acquired by Mr. Forsgren pursuant to
currently exercisable options and 5,382 restricted shares as to which Mr.
Forsgren has sole voting and no dispositive power.
(8) Includes 8,750 shares that could be acquired by Mr. Golden pursuant to
currently exercisable options.
(9) Includes 56,626 shares that could be acquired by Mrs. Grise pursuant to
currently exercisable options, 4,844 restricted 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.
(10) Includes 66,705 shares that could be acquired by Mr. Kenyon pursuant to
currently exercisable options, 501 shares held under the Northeast
Utilities Employee Share Purchase Plan II as to which Mr. Kenyon has sole
voting but no dispositive power, and 1,212 shares held in an ESOP as to
which Mr. Kenyon has sole voting power but no dispositive power.
(11) Includes 14,331 shares that could be acquired by Ms. Kuhlman pursuant to
currently exercisable options.
(12) Includes 13,183 shares that could be acquired by Mr. Long pursuant to
currently exercisable options.
52
(13) Includes 816,258 shares that could be acquired by Mr. Morris pursuant to
currently exercisable options, 1,262 shares held under the Northeast
Utilities Employee Share Purchase Plan II as to which Mr. Morris has sole
voting but no dispositive power, 23,407 restricted shares as to which Mr.
Morris has sole voting and no dispositive power, and 922 shares held in an
ESOP as to which Mr. Morris has sole voting power but no dispositive
power.
(14) Includes 13,183 shares that could be acquired by Mr. Nadeau pursuant to
currently exercisable options.
(15) Includes 34,280 shares that could be acquired by Mr. Sabatino pursuant to
currently exercisable options and 670 shares held under the Northeast
Utilities Employee Share Purchase Plan II as to which Mr. Sabatino has
sole voting but no dispositive power.
(16) Includes 30,916 shares that could be acquired by Mr. Schivley pursuant to
currently exercisable options, 383 shares held in an ESOP as to which Mr.
Schivley has sole voting power but no dispositive power.
(17) Includes 108,090 shares that could be acquired by Mr. Simon pursuant to
currently exercisable options, and 564 shares held in an ESOP as to which
Mr. Simon has sole voting power but no dispositive power.
(18) Includes 24,909 shares that could be acquired by Ms. Thibdaue pursuant to
currently exercisable options and 575 shares held in an ESOP as to which
Mr. Thibdaue has sole voting power but no dispositive power.
c. CONTRACTS AND TRANSACTIONS OF TRUSTEES, DIRECTORS AND EXECUTIVE
OFFICERS WITH SYSTEM COMPANIES
This disclosure was included in the discussion of employment contracts in
Part III, Section (a) above.
d. INDEBTEDNESS OF TRUSTEES, DIRECTORS AND EXECUTIVE OFFICERS OF SYSTEM
COMPANIES
No Trustee, Director or executive officer was indebted to a system company
during 2001.
e. PARTICIPATION OF TRUSTEES, DIRECTORS AND EXECUTIVE OFFICERS IN BONUS
AND PROFIT-SHARING ARRANGEMENTS
This disclosure was included in the discussion of compensation in Part
III, Section (a) above.
f. RIGHTS TO INDEMNITY OF TRUSTEES, DIRECTORS AND EXECUTIVE OFFICERS
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.
53
ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS
1. There were no expenditures, disbursements or payments made during 2001 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 2001 to
citizens groups or public relations counsel.
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS
PART I:
The following energy management and/or demand-side management and other services
to one or more system companies follows:
Serving Receiving
Transaction Company Company Compensation
----------- ------- ------- ------------
(Thousands of Dollars)
Worker Compensation Costs PSNH NAESCO $229
Electrical Maintenance
Services PSNH NAESCO $ 51
Vehicle Lease Charges PSNH NAESCO $ 15
Human Resources Service PSNH NAESCO $ 6
Miscellaneous Services PSNH NAESCO $ 1
Newington Station building
and outside storage PSNH NAESCO $137**
Real estate (plant auction)
services PSNH NAESCO $ 11
** Includes operation and maintenance charges and property taxes associated
with leased property.
Serving Receiving
Transaction Company Company Compensation
----------- ------- ------- ------------
(Thousands of Dollars)
Engineering and Construction
Services NGS NGC $18,600
Engineering and Construction
Services NGS HWP $14,900
Engineering and Construction
Services NGS SESI $ 8,300
54
Serving Receiving
Transaction Company Company Compensation
----------- ------- ------- ------------
(Thousands of Dollars)
Various Demand-Side
Management SES Select Energy $150
Various Energy
Management Services SES CL&P $ 18
Various Energy
Management Services SES WMECO $ 20
PART II:
See Item 6, Part III(c).
PART III:
None to be reported.
55
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 1,287.9 MW of generating assets
in New England which was acquired in March 2000, as a result of the
auctions by NGC's affiliates, The Connecticut Light and Power
Company (CL&P) and Western Massachusetts Electric Company (WMECO) in
their electric restructuring activities. 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 52.8
Turners Falls Montague, MA Conventional Hydro 6.4
Falls Village Falls Village, CT Conventional Hydro 11.1
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 43.0
Stevenson Monroe, CT Conventional Hydro 28.8
Robertsville Colebrook, CT Conventional Hydro 0.6
Bantam Litchfield, CT Conventional Hydro 0.5
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 21.0
-------
Total 1,287.9
=======
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 unregulated businesses.
6. EWG or FUCO:
EWG
56
(c) State the ratio of debt to common equity and earnings as of 12/31/01:
Ratio of debt to common equity as of 12/31/01: 33.974
Ratio of debt to earnings/(loss) as of 12/31/01: 10.412
(d) Service, Sales or Construction Contracts:
NGC has a Power Sales and Purchase Agreement, dated December 27, 1999,
with Select Energy, Inc. (Select), an affiliate of NGC. The term of this
agreement is six years (through December 31, 2005) with an option for
renewal. The agreement sets forth the terms and conditions by which Select
purchases the capacity, associated energy, and ancillary services from the
NGC assets. During 2001, Select paid NGC $124.9 million under this
contract.
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 2001, NGC paid NGS $18.6 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 was
extended through the year 2000 for a one-year period by a renewal
agreement dated December 31, 1999. 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 2001, NGC paid NUSCO
$1.3 million under this contract.
57
PART II.
An organizational chart showing the relationship of the foreign utility company
to other NU system companies is provided as Exhibit H. Required financial data
is provided as Exhibit I.
PART III.
(a) NU's aggregate investment in EWGs and FUCOs, respectively, as of 12/31/01:
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 12/31/01: .71
58
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS
Page
Financial Statements filed pursuant to the
Public Utility Holding Company Act of 1935
Report of Independent Public Accountants F-1
Signature F-2
Financial Statements as of and for the year ended
December 31, 2001
Northeast Utilities and Subsidiaries:
Consolidating Balance Sheet F-3--F-6
Consolidating Statement of Income F-7--F-8
Consolidating Statement of Retained Earnings F-9--F-10
Consolidating Statement of Capital Surplus, Paid In F-9--F-10
Consolidating Statement of Cash Flows F-11--F-12
The Connecticut Light and Power Company and Subsidiaries:
Consolidating Balance Sheet F-13--F-14
Consolidating Statement of Income F-15
Consolidating Statement of Retained Earnings F-16
Consolidating Statement of Capital Surplus, Paid In F-16
Consolidating Statement of Cash Flows F-17
Public Service Company of New Hampshire and Subsidiary:
Consolidating Balance Sheet F-19--F-20
Consolidating Statement of Income F-21
Consolidating Statement of Retained Earnings F-22
Consolidating Statement of Capital Surplus, Paid In F-22
Consolidating Statement of Cash Flows F-23
Western Massachusetts Electric Company and Subsidiary:
Consolidating Balance Sheet F-25--F-26
Consolidating Statement of Income F-27
Consolidating Statement of Retained Earnings F-28
Consolidating Statement of Capital Surplus, Paid In F-28
Consolidating Statement of Cash Flows F-29
Holyoke Water Power Company and Subsidiary:
Consolidating Balance Sheet F-31--F-32
Consolidating Statement of Income F-33
Consolidating Statement of Retained Earnings F-34
Consolidating Statement of Capital Surplus, Paid In F-34
Consolidating Statement of Cash Flows F-35
59
Yankee Energy System, Inc. and Subsidiaries:
Consolidating Balance Sheet F-37--F-40
Consolidating Statement of Income F-41--F-42
Consolidating Statement of Retained Earnings F-43--F-44
Consolidating Statement of Capital Surplus, Paid In F-43--F-44
Consolidating Statement of Cash Flows F-45--F-46
Charter Oak Energy Incorporated and Subsidiaries:
Consolidating Balance Sheet F-47--F-48
Consolidating Statement of Income F-49
Consolidating Statement of Retained Earnings F-50
Consolidating Statement of Capital Surplus, Paid In F-50
Consolidating Statement of Cash Flows F-51
Select Energy Services, Inc.:
Consolidating Balance Sheet F-53--F-56
Consolidating Statement of Income F-57--F-58
Consolidating Statement of Retained Earnings F-59--F-60
Consolidating Statement of Capital Surplus, Paid In F-59--F-60
Consolidating Statement of Cash Flows F-61--F-62
NU Enterprises, Inc. and Subsidiaries:
Consolidating Balance Sheet F-63--F-66
Consolidating Statement of Income F-67--F-68
Consolidating Statement of Retained Earnings F-69--F-70
Consolidating Statement of Capital Surplus, Paid In F-69--F-70
Consolidating Statement of Cash Flows F-71--F-72
Select Energy, Inc. and Subsidiary:
Consolidating Balance Sheet F-73--F-74
Consolidating Statement of Income F-75
Consolidating Statement of Retained Earnings F-76
Consolidating Statement of Capital Surplus, Paid In F-76
Consolidating Statement of Cash Flows F-77
Northeast Generation Services Company and Subsidiaries:
Consolidating Balance Sheet F-79--F-80
Consolidating Statement of Income F-81
Consolidating Statement of Retained Earnings F-82
Consolidating Statement of Capital Surplus, Paid In F-82
Consolidating Statement of Cash Flows F-83
Notes to Financial Statements F-84
Exhibits E-1--E-28
60
This Page Intentionally Left Blank
61
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Northeast Utilities and Subsidiaries:
We have audited the consolidated balance sheets and consolidated statements of
capitalization of Northeast Utilities (a Massachusetts trust) and subsidiaries
as of December 31, 2001 and 2000, and the related consolidated statements of
income, comprehensive income, shareholders' equity, cash flows, and income taxes
for each of the three years in the period ended December 31, 2001, included in
the 2001 annual report to shareholders, incorporated by reference in the Form
10-K and incorporated by reference in this Form U5S, and have issued our report
thereon dated January 22, 2002. These financial statements are the
responsibility of the company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Northeast Utilities and
subsidiaries as of December 31, 2001 and 2000, and the results of their
operations and their cash flows for each of the three years in the period ended
December 31, 2001, in conformity with accounting principles generally accepted
in the United States.
/s/ Arthur Andersen LLP
Arthur Andersen LLP
Hartford, Connecticut
January 22, 2002
F-1
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 26, 2002
F-2
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2001
(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
---------- -------------- -------------- -------------- --------------
Utility Plant, at cost:
Electric $ -- $3,127,548 $1,447,955 $ 564,857 $ 730,422
Gas -- -- -- -- --
Other -- -- 6,221 -- --
---------- ---------- ---------- --------- ---------
-- 3,127,548 1,454,176 564,857 730,422
Less: Accumulated provision for
depreciation -- 1,236,638 689,397 186,784 731,279
---------- ---------- ---------- --------- ---------
-- 1,890,910 764,779 378,073 (857)
Construction work in progress -- 134,964 44,961 18,326 9,897
Nuclear fuel, net -- 3,299 -- -- 29,265
---------- ---------- ---------- --------- ---------
Total net utility plant -- 2,029,173 809,740 396,399 38,305
---------- ---------- ---------- --------- ---------
Other Property and Investments:
Nuclear decommissioning trusts, at market -- 6,231 -- -- 55,482
Investments in regional nuclear generating
companies, at equity -- 34,696 8,510 9,300 --
Investments in subsidiary companies,
at equity 2,392,884 -- -- -- --
Investment in transmission company,
at equity 13,596 -- -- -- --
Other, at cost 14 50,572 35,837 7,248 --
---------- ---------- ---------- --------- ---------
2,406,494 91,499 44,347 16,548 55,482
---------- ---------- ---------- --------- ---------
Current Assets:
Cash and cash equivalents 13,183 773 1,479 599 84
Special Deposits -- -- -- -- --
Investments in securitizable assets -- 36,367 -- -- --
Notes receivable from affiliated companies 124,800 77,200 -- -- 32,200
Receivables, net 555 247,801 70,540 43,761 --
Accounts receivable from affiliated
companies 21,713 22,134 13,055 2,208 9,505
Taxes receivable from affiliated companies -- -- -- -- 3,570
Unbilled revenues -- 7,492 29,268 12,746 --
Fuel, materials and supplies, at average cost -- 33,085 42,047 1,457 14,419
Unrealized gains on mark-to-market -- -- -- -- --
Prepayments and other 1,093 17,703 10,211 1,544 1,893
---------- ---------- ---------- --------- ---------
161,344 442,555 166,600 62,315 61,671
---------- ---------- ---------- --------- ---------
Deferred Charges:
Regulatory assets -- 1,877,191 1,046,760 320,222 11,062
Accumulated deferred income taxes -- -- -- -- --
Unamortized debt expense 662 6,203 7,939 678 --
Goodwill and other purchased intangible
assets,net -- -- -- -- --
Prepaid pension -- 233,692 -- 54,226 --
Other 3,584 47,244 19,128 2,274 783
---------- ---------- ---------- --------- ---------
4,246 2,164,330 1,073,827 377,400 11,845
---------- ---------- ---------- --------- ---------
Total Assets $2,572,084 $4,727,557 $2,094,514 $ 852,662 $ 167,303
========== ========== ========== ========= =========
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.
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2001
(Thousands of Dollars)
Holyoke
Water Power Northeast
Company Utilities
(consolidated) Service
(b) Company
-------------- ----------
Utility Plant, at cost:
Electric $ 36,699 $ --
Gas -- --
Other -- 98,371
--------- ---------
36,699 98,371
Less: Accumulated provision for
depreciation 32,860 81,174
--------- ---------
3,839 17,197
Construction work in progress 1,118 14,955
Nuclear fuel, net -- --
--------- ---------
Total net utility plant 4,957 32,152
--------- ---------
Other Property and Investments:
Nuclear decommissioning trusts, at market -- --
Investments in regional nuclear generating
companies, at equity -- --
Investments in subsidiary companies,
at equity -- --
Investment in transmission company,
at equity -- --
Other, at cost 1,859 6,713
--------- ---------
1,859 6,713
--------- ---------
Current Assets:
Cash and cash equivalents 3,130 58,293
Special Deposits -- --
Investments in securitizable assets -- --
Notes receivable from affiliated companies 3,300 218,800
Receivables, net 125 56,817
Accounts receivable from affiliated
companies 4,124 1,040
Taxes receivable from affiliated companies 239 12,341
Unbilled revenues -- --
Fuel, materials and supplies, at average cost 6,157 286
Unrealized gains on mark-to-market -- --
Prepayments and other 998 2,287
--------- ---------
18,073 349,864
--------- ---------
Deferred Charges:
Regulatory assets 762 --
Accumulated deferred income taxes -- 6,037
Unamortized debt expense -- --
Goodwill and other purchased intangible
assets,net -- --
Prepaid pension 2,514 18,366
Other 281 35,740
--------- ---------
3,557 60,143
--------- ---------
Total Assets $ 28,446 $ 448,872
========= =========
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-3
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2001
(Thousands of Dollars)
Northeast
Nuclear North Atlantic The The Rocky
Energy Energy Service Quinnehtuk River Realty
Company Corporation Company Company
--------- -------------- ---------- ------------
Utility Plant, at cost:
Electric $ -- $ -- $ -- $ --
Gas -- -- -- --
Other -- -- 1,639 89,509
--------- --------- --------- ---------
-- -- 1,639 89,509
Less: Accumulated provision for
depreciation -- -- 1,265 37,209
--------- --------- --------- ---------
-- -- 374 52,300
Construction work in progress -- -- 1 5,387
Nuclear fuel, net -- -- -- --
--------- --------- --------- ---------
Total net utility plant -- -- 375 57,687
--------- --------- --------- ---------
Other Property and Investments:
Nuclear decommissioning trusts, at market -- -- -- --
Investments in regional nuclear generating
companies, at equity -- -- -- --
Investments in subsidiary companies,
at equity -- -- -- --
Investment in transmission company,
at equity -- -- -- --
Other, at cost -- -- 1,140 1,925
--------- --------- --------- ---------
-- -- 1,140 1,925
--------- --------- --------- ---------
Current Assets:
Cash and cash equivalents 36 2,205 24 105
Special Deposits -- -- -- --
Investments in securitizable assets -- -- -- --
Notes receivable from affiliated companies 56,900 -- -- --
Receivables, net 3,119 27,006 -- 28
Accounts receivable from affiliated
companies 1,158 43 -- 266
Taxes receivable from affiliated companies 2,547 239 -- 917
Unbilled revenues -- -- -- --
Fuel, materials and supplies, at average cost -- 13 -- --
Unrealized gains on mark-to-market -- -- -- --
Prepayments and other -- 1,081 1 587
--------- --------- --------- ---------
63,760 30,587 25 1,903
--------- --------- --------- ---------
Deferred Charges:
Regulatory assets -- 1 4 --
Accumulated deferred income taxes 29,578 353 34 --
Unamortized debt expense -- -- -- 34
Goodwill and other purchased intangible
assets,net -- -- -- --
Prepaid pension -- -- -- --
Other 1,062 38,369 -- --
--------- --------- --------- ---------
30,640 38,723 38 34
--------- --------- --------- ---------
Total Assets $ 94,400 $ 69,310 $ 1,578 $ 61,549
========= ========= ========= =========
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.
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2001
(Thousands of Dollars)
NU
Yankee Energy Charter Oak Enterprises,
Systems, Inc. Energy, Inc. Inc.
(consolidated) (consolidated) (consolidated) Eliminations Consolidated
(b) (b) (b)
-------------- -------------- -------------- ------------ ------------
Utility Plant, at cost:
Electric $ -- $ 52 $ 266,215 $ 127,258 $ 6,046,489
Gas 634,884 -- -- -- 634,884
Other -- -- 41,149 -- 236,890
------------ ------------ ------------ ------------ ------------
634,884 52 307,364 127,258 6,918,263
Less: Accumulated provision for
depreciation 266,655 52 165,665 10,400 3,418,577
------------ ------------ ------------ ------------ ------------
368,229 -- 141,699 116,858 3,499,686
Construction work in progress 37,726 -- 22,554 -- 289,889
Nuclear fuel, net -- -- -- -- 32,564
------------ ------------ ------------ ------------ ------------
Total net utility plant 405,955 -- 164,253 116,858 3,822,139
------------ ------------ ------------ ------------ ------------
Other Property and Investments:
Nuclear decommissioning trusts, at market -- -- -- -- 61,713
Investments in regional nuclear generating
companies, at equity -- -- -- -- 52,505
Investments in subsidiary companies,
at equity -- -- -- 2,392,884 --
Investment in transmission company,
at equity -- -- -- -- 13,596
Other, at cost 17,334 -- 36,207 -- 158,849
------------ ------------ ------------ ------------ ------------
17,334 -- 36,207 2,392,884 286,663
------------ ------------ ------------ ------------ ------------
Current Assets:
Cash and cash equivalents 393 279 16,077 -- 96,658
Special Deposits -- -- 13,036 (47,225) 60,261
Investments in securitizable assets -- -- -- -- 36,367
Notes receivable from affiliated companies -- -- 16,300 529,501 --
Receivables, net 48,657 -- 332,813 -- 831,221
Accounts receivable from affiliated
companies 534 23,825 107,833 207,437 --
Taxes receivable from affiliated companies -- -- 2,001 21,853 --
Unbilled revenues 42,494 -- 34,397 -- 126,398
Fuel, materials and supplies, at average cost 3,880 -- 2,618 (4,554) 108,516
Unrealized gains on mark-to-market -- -- 72,865 72,865 --
Prepayments and other 20,241 -- 21,172 (47,421) 126,233
------------ ------------ ------------ ------------ ------------
116,199 24,104 619,112 732,456 1,385,654
------------ ------------ ------------ ------------ ------------
Deferred Charges:
Regulatory assets 40,834 -- -- (653,608) 3,950,445
Accumulated deferred income taxes -- 80 286,768 322,850 --
Unamortized debt expense 1,135 -- 10,662 -- 27,313
Goodwill and other purchased intangible
assets,net 287,996 -- 34,604 -- 322,600
Prepaid pension 42,757 -- 2,716 121,874 232,398
Other 717 -- 91,395 26,379 214,197
------------ ------------ ------------ ------------ ------------
373,439 80 426,145 (182,505) 4,746,953
------------ ------------ ------------ ------------ ------------
Total Assets $ 912,927 $ 24,184 $ 1,245,717 $ 3,059,693 $ 10,241,409
============ ============ ============ ============ ============
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-4
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2001
(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
----------- -------------- -------------- -------------- --------------
Capitalization:
Common shareholders' equity:
Common shares $ 744,453 $ 75,849 $ -- $ 12,742 $ --
Capital surplus, paid in 1,107,609 414,018 165,000 82,224 36,000
Deferred contribution plan - employee stock
ownership plan (101,809) -- -- -- --
Retained earnings 678,460 286,901 176,419 55,422 (1,007)
Accumulated other comprehensive (loss)/ income (32,470) 67 406 59 --
Treasury stock (278,603) -- -- -- --
----------- ---------- ---------- -------- ---------
Total common shareholders' equity 2,117,640 776,835 341,825 150,447 34,993
Preferred stock not subject to mandatory
redemption -- 116,200 -- -- --
Advances from Northeast Utilities -- -- -- -- --
Long-term debt 357,000 824,349 407,285 101,170 --
----------- ---------- ---------- -------- ---------
Total capitalization 2,474,640 1,717,384 749,110 251,617 34,993
----------- ---------- ---------- -------- ---------
Rate Reduction Bonds -- 1,358,653 507,381 152,317 --
----------- ---------- ---------- -------- ---------
Obligations Under Capital Leases -- 15,499 86,111 87 --
----------- ---------- ---------- -------- ---------
Current Liabilities:
Notes payable to banks 40,000 -- 60,500 50,000 90,000
Notes payable to affiliated company -- -- 23,000 9,200 --
Long-term debt - current portion 23,000 -- -- -- --
Obligations under capital leases - current
portion -- 541 24,164 23 --
Accounts payable 146 132,593 32,285 34,970 15,246
Accounts payable to affiliated companies 26,626 85,057 18,727 2,982 1,761
Accrued taxes 249 34,823 2,281 3,691 --
Accrued interest 2,492 10,369 9,428 2,201 --
Other 19 46,801 25,164 10,104 269
----------- ---------- ---------- -------- ---------
92,532 310,184 195,549 113,171 107,276
----------- ---------- ---------- -------- ---------
Deferred Credits and Other Long-term Liabilities:
Accumulated deferred income taxes 4,742 820,444 423,050 229,893 1,639
Accumulated deferred investment tax credits -- 95,996 12,015 3,998 --
Deferred contractual obligations -- 141,497 37,712 37,357 --
Deferred pension costs -- -- 37,326 -- --
Other 170 267,900 46,260 64,222 23,395
----------- ---------- ---------- -------- ---------
4,912 1,325,837 556,363 335,470 25,034
----------- ---------- ---------- -------- ---------
Total Capitalization and Liabilities $ 2,572,084 $4,727,557 $2,094,514 $852,662 $ 167,303
=========== ========== ========== ======== =========
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.
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2001
(Thousands of Dollars)
Holyoke
Water Power Northeast
Company Utilities
(consolidated) Service
(b) Company
------------- ---------
Capitalization:
Common shareholders' equity:
Common shares $ 2,400 $ --
Capital surplus, paid in 6,000 1
Deferred contribution plan - employee stock
ownership plan -- --
Retained earnings (1,233) --
Accumulated other comprehensive (loss)/ income (5) --
Treasury stock -- --
--------- ---------
Total common shareholders' equity 7,162 1
Preferred stock not subject to mandatory
redemption -- --
Advances from Northeast Utilities 9,600 --
Long-term debt -- --
--------- ---------
Total capitalization 16,762 1
--------- ---------
Rate Reduction Bonds -- --
--------- ---------
Obligations Under Capital Leases -- 25
--------- ---------
Current Liabilities:
Notes payable to banks -- --
Notes payable to affiliated company -- 274,100
Long-term debt - current portion -- --
Obligations under capital leases - current
portion -- 6
Accounts payable 4,755 44,564
Accounts payable to affiliated companies 1,785 21,058
Accrued taxes -- --
Accrued interest 12 38
Other 38 16,395
--------- ---------
6,590 356,161
--------- ---------
Deferred Credits and Other Long-term Liabilities:
Accumulated deferred income taxes 969 --
Accumulated deferred investment tax credits -- --
Deferred contractual obligations -- --
Deferred pension costs -- --
Other 4,125 92,685
--------- ---------
5,094 92,685
--------- ---------
Total Capitalization and Liabilities $ 28,446 $ 448,872
========= =========
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-5
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2001
(Thousands of Dollars)
Northeast
Nuclear North Atlantic The The Rocky
Energy Energy Service Quinnehtuk River Realty
Company Corporation Company Company
--------- -------------- ---------- ------------
Capitalization:
Common shareholders' equity:
Common shares $ 15 $ 1 $ 350 $ 10
Capital surplus, paid in 15,350 9 155 --
Deferred contribution plan - employee stock
ownership plan -- -- -- --
Retained earnings 851 4 (3,092) 674
Accumulated other comprehensive (loss)/ income (121) -- -- --
Treasury stock -- -- -- --
--------- --------- --------- ---------
Total common shareholders' equity 16,095 14 (2,587) 684
Preferred stock not subject to mandatory
redemption -- -- -- --
Advances from Northeast Utilities -- -- -- --
Long-term debt -- -- -- 7,866
--------- --------- --------- ---------
Total capitalization 16,095 14 (2,587) 8,550
--------- --------- --------- ---------
Rate Reduction Bonds -- -- -- --
--------- --------- --------- ---------
Obligations Under Capital Leases -- -- -- --
--------- --------- --------- ---------
Current Liabilities:
Notes payable to banks -- -- -- --
Notes payable to affiliated company -- -- 3,700 25,300
Long-term debt - current portion -- -- -- 2,412
Obligations under capital leases - current
portion -- -- -- --
Accounts payable 5,237 15,718 -- --
Accounts payable to affiliated companies 5,575 6,103 9 2,018
Accrued taxes -- -- 200 --
Accrued interest -- -- -- 156
Other 1,073 8,163 -- 1,310
--------- --------- --------- ---------
11,885 29,984 3,909 31,196
--------- --------- --------- ---------
Deferred Credits and Other Long-term Liabilities:
Accumulated deferred income taxes -- -- -- 2,350
Accumulated deferred investment tax credits 963 -- -- --
Deferred contractual obligations -- -- -- --
Deferred pension costs 49,440 35,108 -- --
Other 16,017 4,204 256 19,453
--------- --------- --------- ---------
66,420 39,312 256 21,803
--------- --------- --------- ---------
Total Capitalization and Liabilities $ 94,400 $ 69,310 $ 1,578 $ 61,549
========= ========= ========= =========
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.
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2001
(Thousands of Dollars)
NU
Yankee Energy Charter Oak Enterprises,
Systems, Inc. Energy, Inc. Inc.
(consolidated) (consolidated) (consolidated)
(b) (b) (b) Eliminations Consolidated
-------------- -------------- -------------- ------------ ------------
Capitalization:
Common shareholders' equity:
Common shares $ -- $ -- $ -- $ 91,368 $ 744,453
Capital surplus, paid in 484,888 75,944 212,735 1,492,322 1,107,609
Deferred contribution plan - employee stock
ownership plan -- -- -- -- (101,809)
Retained earnings 25,048 (64,147) (64,925) 410,916 678,460
Accumulated other comprehensive (loss)/ income (1,363) -- (31,416) (32,374) (32,470)
Treasury stock -- -- -- -- (278,603)
----------- ----------- ----------- ----------- ------------
Total common shareholders' equity 508,573 11,797 116,394 1,962,232 2,117,640
Preferred stock not subject to mandatory
redemption -- -- -- -- 116,200
Advances from Northeast Utilities -- -- 33,502 43,102 --
Long-term debt 152,908 -- 441,979 -- 2,292,556
----------- ----------- ----------- ----------- ------------
Total capitalization 661,481 11,797 591,875 2,005,334 4,526,396
----------- ----------- ----------- ----------- ------------
Rate Reduction Bonds -- -- -- -- 2,018,351
----------- ----------- ----------- ----------- ------------
Obligations Under Capital Leases -- -- -- 84,928 16,794
----------- ----------- ----------- ----------- ------------
Current Liabilities:
Notes payable to banks 50,000 -- -- -- 290,500
Notes payable to affiliated company 5,200 -- 189,000 529,501 --
Long-term debt - current portion 1,050 -- 24,000 -- 50,462
Obligations under capital leases - current
portion -- -- -- 23,989 745
Accounts payable 25,004 93 311,710 (47,225) 669,545
Accounts payable to affiliated companies 1,518 11,913 8,195 193,328 --
Accrued taxes 7,825 381 794 24,041 26,203
Accrued interest 3,514 -- 7,801 352 35,659
Other 7,166 -- 45,338 1,308 160,532
----------- ----------- ----------- ----------- ------------
101,277 12,387 586,838 725,294 1,233,646
----------- ----------- ----------- ----------- ------------
Deferred Credits and Other Long-term Liabilities:
Accumulated deferred income taxes 67,336 -- -- 59,029 1,491,394
Accumulated deferred investment tax credits 7,099 -- -- -- 120,071
Deferred contractual obligations -- -- -- -- 216,566
Deferred pension costs -- -- -- 121,875 --
Other 75,734 -- 67,003 63,233 618,191
----------- ----------- ----------- ----------- ------------
150,169 -- 67,003 244,137 2,446,222
----------- ----------- ----------- ----------- ------------
Total Capitalization and Liabilities $ 912,927 $ 24,184 $ 1,245,716 $ 3,059,693 $ 10,241,409
=========== =========== =========== =========== ============
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-6
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2001
(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
--------- -------------- -------------- -------------- --------------
Operating Revenues $ -- $ 2,646,123 $ 1,171,686 $ 478,869 $ 656,147
--------- ----------- ----------- --------- ---------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power -- 1,514,418 713,668 315,903 14,402
Other 11,847 310,477 124,123 66,458 40,838
Maintenance 21 106,228 56,276 19,635 12,045
Depreciation -- 96,212 39,741 13,818 511,172
Amortization of regulatory assets, net -- 746,693 65,445 131,876 28,367
Federal and state income taxes (10,997) 88,218 32,054 9,796 18,804
Taxes other than income taxes 49 130,656 38,375 13,065 7,333
Gain on sale of utility plant -- (521,590) (590) (119,775) --
--------- ----------- ----------- --------- ---------
Total operating expenses 920 2,471,312 1,069,092 450,776 632,961
--------- ----------- ----------- --------- ---------
Operating (Loss)/Income (920) 174,811 102,594 28,093 23,186
--------- ----------- ----------- --------- ---------
Other Income/(Loss):
Equity in earnings of subsidiaries 188,783 -- -- -- --
Equity in earnings of regional nuclear
generating and transmission companies 2,079 1,128 473 290 --
Gain related to Millstone sale 147,935 29,461 25,924 22 --
Loss on share repurchase contracts (35,394) -- -- -- --
Other, net 8,784 25,315 10,246 (1,362) (1,905)
Minority interest in loss of subsidiary -- (3,100) -- -- --
Deferred nuclear plant return-other funds -- -- -- -- 263
Income taxes (35,061) 3,317 (6,517) 3,236 (5,491)
--------- ----------- ----------- --------- ---------
Other income/(loss), net 277,126 56,121 30,126 2,186 (7,133)
--------- ----------- ----------- --------- ---------
Income before interest charges 276,206 230,932 132,720 30,279 16,053
--------- ----------- ----------- --------- ---------
Interest Charges:
Interest on long-term debt 24,191 59,724 30,201 5,325 4,693
Interest on rate reduction bonds -- 60,644 20,721 6,251 --
Other interest 8,505 761 22 3,735 7,432
Deferred interest-nuclear plants -- -- -- -- (247)
--------- ----------- ----------- --------- ---------
Interest charges, net 32,696 121,129 50,944 15,311 11,878
--------- ----------- ----------- --------- ---------
Income/(loss) before cumulative effect of
accounting change, net of tax benefit 243,510 109,803 81,776 14,968 4,175
Cumulative effect of accounting change,
net of tax benefit -- -- -- -- --
--------- ----------- ----------- --------- ---------
Net Income/(Loss) $ 243,510 $ 109,803 $ 81,776 $ 14,968 $ 4,175
========= =========== =========== ========= =========
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.
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Holyoke
Water Power
Company
(consolidated)
(b)
-------------
Operating Revenues $55,197
-------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power 27,988
Other 8,938
Maintenance 7,030
Depreciation 2,106
Amortization of regulatory assets, net --
Federal and state income taxes 3,145
Taxes other than income taxes 546
Gain on sale of utility plant --
-------
Total operating expenses 49,753
-------
Operating (Loss)/Income 5,444
-------
Other Income/(Loss):
Equity in earnings of subsidiaries --
Equity in earnings of regional nuclear
generating and transmission companies --
Gain related to Millstone sale --
Loss on share repurchase contracts --
Other, net 383
Minority interest in loss of subsidiary --
Deferred nuclear plant return-other funds --
Income taxes 545
-------
Other income/(loss), net 928
-------
Income before interest charges 6,372
-------
Interest Charges:
Interest on long-term debt 1,709
Interest on rate reduction bonds --
Other interest 287
Deferred interest-nuclear plants --
-------
Interest charges, net 1,996
-------
Income/(loss) before cumulative effect of
accounting change, net of tax benefit 4,376
Cumulative effect of accounting change,
net of tax benefit --
-------
Net Income/(Loss) $ 4,376
=======
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 Statement of Income (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Northeast Northeast
Utilities Nuclear North Atlantic The The Rocky
Service Energy Energy Service Quinnehtuk River Realty
Company Company Corporation Company Company
--------- ---------- --------------- ---------- ------------
Operating Revenues $ 304,802 $ 126,749 $ 155,436 $ 204 $ 6,389
--------- --------- --------- ----- -------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power -- -- 8,243 -- --
Other 263,152 70,306 103,885 17 754
Maintenance 12,403 51,054 38,078 -- --
Depreciation 10,831 206 -- 54 2,445
Amortization of regulatory assets, net -- -- -- -- --
Federal and state income taxes (1,210) (1,654) (308) (50) (5)
Taxes other than income taxes 11,342 5,588 4,821 125 1,381
Gain on sale of utility plant -- -- -- -- --
--------- --------- --------- ----- -------
Total operating expenses 296,518 125,500 154,719 146 4,575
--------- --------- --------- ----- -------
Operating (Loss)/Income 8,284 1,249 717 58 1,814
--------- --------- --------- ----- -------
Other Income/(Loss):
Equity in earnings of subsidiaries -- -- -- -- --
Equity in earnings of regional nuclear
generating and transmission companies -- -- -- -- --
Gain related to Millstone sale -- -- -- -- --
Loss on share repurchase contracts -- -- -- -- --
Other, net (7,736) (383) (600) (4) 40
Minority interest in loss of subsidiary -- -- -- -- --
Deferred nuclear plant return-other funds -- -- -- -- --
Income taxes -- -- -- -- --
--------- --------- --------- ----- -------
Other income/(loss), net (7,736) (383) (600) (4) 40
--------- --------- --------- ----- -------
Income before interest charges 548 866 117 54 1,854
--------- --------- --------- ----- -------
Interest Charges:
Interest on long-term debt -- 98 -- -- 954
Interest on rate reduction bonds -- -- -- -- --
Other interest 548 355 116 147 900
Deferred interest-nuclear plants -- -- -- -- --
--------- --------- --------- ----- -------
Interest charges, net 548 453 116 147 1,854
--------- --------- --------- ----- -------
Income/(loss) before cumulative effect of
accounting change, net of tax benefit -- 413 1 (93) --
Cumulative effect of accounting change,
net of tax benefit -- -- -- -- --
--------- --------- --------- ----- -------
Net Income/(Loss) $ -- $ 413 $ 1 $ (93) $ --
========= ========= ========= ===== =======
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.
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2001
(Thousands of Dollars)
NU
Yankee Energy Charter Oak Enterprises,
System, Inc. Energy, Inc. Inc.
(consolidated) (consolidated) (consolidated)
(b) (b) (b) Eliminations Consolidated
------------- -------------- -------------- ------------- ------------
Operating Revenues $ 380,223 $ -- $ 2,975,996 $ 2,083,996 $ 6,873,826
--------- ----- ----------- ----------- -----------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power 218,585 -- 2,673,379 945,244 4,541,342
Other 57,277 (158) 187,394 472,250 773,058
Maintenance 7,969 -- 55,783 107,562 258,961
Depreciation 26,578 -- 6,917 509,069 201,013
Amortization of regulatory assets, net 7,761 -- 1,267 (1,628) 983,037
Federal and state income taxes 11,191 (309) (2,629) 12,782 133,264
Taxes other than income taxes 14,787 -- 12,855 21,726 219,197
Gain on sale of utility plant -- -- -- -- (641,956)
--------- ----- ----------- ----------- -----------
Total operating expenses 344,148 (467) 2,934,966 2,067,005 6,467,916
--------- ----- ----------- ----------- -----------
Operating (Loss)/Income 36,075 467 41,030 16,991 405,910
--------- ----- ----------- ----------- -----------
Other Income/(Loss):
Equity in earnings of subsidiaries -- -- -- 188,783 --
Equity in earnings of regional nuclear
generating and transmission companies -- -- -- -- 3,970
Gain related to Millstone sale -- -- -- 14,000 189,343
Loss on share repurchase contracts -- -- -- -- (35,394)
Other, net 4,193 535 (2,877) 2,083 32,546
Minority interest in loss of subsidiary -- -- -- -- (3,100)
Deferred nuclear plant return-other funds -- -- -- -- 262
Income taxes (378) (71) (269) -- (40,688)
--------- ----- ----------- ----------- -----------
Other income/(loss), net 3,815 464 (3,146) 204,866 146,939
--------- ----- ----------- ----------- -----------
Income before interest charges 39,890 931 37,884 221,857 552,849
--------- ----- ----------- ----------- -----------
Interest Charges:
Interest on long-term debt 12,855 -- 7,396 98 147,049
Interest on rate reduction bonds -- -- -- -- 87,616
Other interest 760 -- 33,111 11,686 44,993
Deferred interest-nuclear plants -- -- -- (247) --
--------- ----- ----------- ----------- -----------
Interest charges, net 13,615 -- 40,507 11,537 279,658
--------- ----- ----------- ----------- -----------
Income/(loss) before cumulative effect of
accounting change, net of tax benefit 26,275 931 (2,623) 210,320 273,191
Cumulative effect of accounting change,
net of tax benefit (447) -- (21,985) -- (22,432)
--------- ----- ----------- ----------- -----------
Net Income/(Loss) $ 25,828 $ 931 $ (24,608) $ 210,320 $ 250,759
========= ===== =========== =========== ===========
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-8
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2001
(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 $ 495,873 $ 243,197 $ 123,177 $ 62,952 $ (41)
Additions:
Net income/(loss) 243,510 109,803 81,776 14,968 4,175
Tax benefit for 1993-1999 from
reduction of NU losses -- -- -- -- 5,859
--------- --------- --------- --------- ---------
739,383 353,000 204,953 77,920 9,993
--------- --------- --------- --------- ---------
Deductions:
Dividends declared:
Preferred stock (at required annual rates):
The Connecticut Light and Power Company -- 5,559 -- -- --
Western Massachusetts Electric Company -- -- -- 404 --
Public Service Company of New Hampshire -- -- 1,286 -- --
Common shares:
$7.92 per share -- 60,072 -- -- --
$69,587.622 per share -- -- 27,000 -- --
$42.3616 per share -- -- -- 22,000 --
$.45 per share 60,923 -- -- -- --
$11,000.00 per share -- -- -- -- 11,000
Allocation of benefits-ESOP -- 468 248 94 --
--------- --------- --------- --------- ---------
Total deductions 60,923 66,099 28,534 22,498 11,000
--------- --------- --------- --------- ---------
Balance at end of period $ 678,460 $ 286,901 $ 176,419 $ 55,422 $ (1,007)
========= ========= ========= ========= =========
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Holyoke
Water Power Northeast
Company Nuclear
(consolidated) Energy
(b) Company
-------------- ---------
Balance at beginning of period $ (5,607) $ 438
Additions:
Net income/(loss) 4,376 413
Tax benefit for 1993-1999 from
reduction of NU losses -- --
--------- ---------
(1,231) 851
--------- ---------
Deductions:
Dividends declared:
Preferred stock (at required annual rates):
The Connecticut Light and Power Company -- --
Western Massachusetts Electric Company -- --
Public Service Company of New Hampshire -- --
Common shares:
$7.92 per share -- --
$69,587.622 per share -- --
$42.3616 per share -- --
$.45 per share -- --
$11,000.00 per share -- --
Allocation of benefits-ESOP 2 --
--------- ---------
Total deductions 2 --
--------- ---------
Balance at end of period $ (1,233) $ 851
========= =========
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2001
(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 $ 942,144 $ 413,192 $ 424,909 $ 94,010 $ 160,999
Repurchase of common stock -- -- (259,999) (12,990) (124,999)
Capital contribution from Northeast Utilities -- -- -- -- --
Dividends declared on common shares
at $25,000.00 per share -- -- -- -- --
at $55,000.00 per share -- -- -- -- --
Premium on Capital Stock - Issuance 1,207 -- -- -- --
Additional paid in capital - ESOP shares (2,296) -- -- -- --
Common share issuance & retirements
expenses, net of amortization 2,118 826 90 1,204 --
Repurchase of common shares from share
purchase arrangements 164,436 -- -- -- --
----------- --------- --------- --------- ---------
Balance at end of period $ 1,107,609 $ 414,018 $ 165,000 $ 82,224 $ 36,000
=========== ========= ========= ========= =========
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.
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Holyoke
Water Power Northeast
Company Utilities
(consolidated) Energy
(b) Company
-------------- ---------
Balance at beginning of period $ 6,000 $ 1
Repurchase of common stock -- --
Capital contribution from Northeast Utilities -- --
Dividends declared on common shares
at $25,000.00 per share -- --
at $55,000.00 per share -- --
Premium on Capital Stock - Issuance -- --
Additional paid in capital - ESOP shares -- --
Common share issuance & retirements
expenses, net of amortization -- --
Repurchase of common shares from share
purchase arrangements -- --
--------- ---------
Balance at end of period $ 6,000 $ 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-9
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2001
(Thousands of Dollars)
North Atlantic The The Rocky
Energy Service Quinnehtuk River Realty
Corporation Company Company
-------------- ---------- ------------
Balance at beginning of period $ 3 $ (2,999) $ 674
Additions:
Net income/(loss) 1 (93) --
Tax benefit for 1993-1999 from
reduction of NU losses -- -- --
--------- --------- ---------
4 (3,092) 674
--------- --------- ---------
Deductions:
Dividends declared:
Preferred stock (at required annual rates):
The Connecticut Light and Power Company -- -- --
Western Massachusetts Electric Company -- -- --
Public Service Company of New Hampshire -- -- --
Common shares:
$7.92 per share -- -- --
$69,587.622 per share -- -- --
$42.3616 per share -- -- --
$.45 per share -- -- --
$11,000.00 per share -- -- --
Allocation of benefits-ESOP -- -- --
--------- --------- ---------
Total deductions -- -- --
--------- --------- ---------
Balance at end of period $ 4 $ (3,092) $ 674
========= ========= =========
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2001
(Thousands of Dollars)
NU
Yankee Energy Charter Oak Enterprises,
System, Inc. Energy, Inc. Inc.
(consolidated) (consolidated) (consolidated)
(b) (b) (b) Eliminations Consolidated
------------- -------------- -------------- ------------- ------------
Balance at beginning of period $ (733) $ (65,078) $ (40,183) $ 315,801 $ 495,873
Additions:
Net income/(loss) 25,828 931 (24,608) 210,320 250,759
Tax benefit for 1993-1999 from
reduction of NU losses -- -- -- 5,859 --
--------- --------- --------- --------- ---------
25,095 (64,147) (64,791) 531,980 746,632
--------- --------- --------- --------- ---------
Deductions:
Dividends declared:
Preferred stock (at required annual rates):
The Connecticut Light and Power Company -- -- -- -- 5,559
Western Massachusetts Electric Company -- -- -- -- 404
Public Service Company of New Hampshire -- -- -- -- 1,286
Common shares:
$7.92 per share -- -- -- 60,072 --
$69,587.622 per share -- -- -- 27,000 --
$42.3616 per share -- -- -- 22,000 --
$.45 per share -- -- -- -- 60,923
$11,000.00 per share -- -- -- 11,000 --
Allocation of benefits-ESOP 47 -- 134 992 --
--------- --------- --------- --------- ---------
Total deductions 47 -- 134 121,064 68,172
--------- --------- --------- --------- ---------
Balance at end of period $ 25,048 $ (64,147) $ (64,925) $ 410,916 $ 678,460
========= ========= ========= ========= =========
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Northeast
Nuclear North Atlantic The
Energy Energy Service Quinnehtuk
Company Corporation Company
----------- ------------- ------------
Balance at beginning of period $ 15,350 $ 9 $ 155
Repurchase of common stock -- -- --
Capital contribution from Northeast Utilities -- -- --
Dividends declared on common shares
at $25,000.00 per share -- -- --
at $55,000.00 per share -- -- --
Premium on Capital Stock - Issuance -- -- --
Additional paid in captial - ESOP shares -- -- --
Common share issuance & retirements
expenses, net of amortization -- -- --
Repurchase of common shares from share
purchase arrangements -- -- --
--------- --------- ---------
Balance at end of period $ 15,350 $ 9 $ 155
========= ========= =========
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.
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2001
(Thousands of Dollars)
NU
Yankee Energy Charter Oak Enterprises,
System, Inc. Energy, Inc. Inc.
(consolidated) (consolidated) (consolidated)
(b) (b) (b) Eliminations Consolidated
-------------- -------------- -------------- ------------- ------------
Balance at beginning of period $ 484,888 $ 83,944 $ 155,510 $ 1,838,968 $ 942,144
Repurchase of common stock -- -- (75,000) (472,989) --
Capital contribution from Northeast Utilities -- -- 103,425 103,425 --
Dividends declared on common shares
at $25,000.00 per share -- (2,500) -- (2,500) --
at $55,000.00 per share -- (5,500) -- (5,500) --
Premium on Capital Stock - Issuance -- -- -- -- 1,207
Additional paid in captial - ESOP shares -- -- -- -- (2,296)
Common share issuance & retirements
expenses, net of amortization -- -- -- 2,118 2,118
Repurchase of common shares from share
purchase arrangements -- -- -- -- 164,436
--------- --------- --------- ----------- -----------
Balance at end of period $ 484,888 $ 75,944 $ 183,935 $ 1,463,522 $ 1,107,609
========= ========= ========= =========== ===========
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-10
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Western
Connecticut Public Service Massachusetts
Light and Company of Electric
Northeast Power Company New Hampshire Company
Utilities (consolidated) (consolidated) (consolidated)
(parent) (b) (b) (b)
----------- -------------- -------------- --------------
Operating Activities:
Income/(Loss) before extraordinary loss $ 243,510 $ 109,803 $ 81,776 $ 14,968
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation -- 96,212 39,741 13,818
Deferred income taxes and investment tax credits, net (233) (144,559) 195,422 5,281
Amortization of recoverable energy costs -- 5,162 (21,234) 3,179
Amortization of regulatory assets, net -- 746,693 65,445 131,876
(Gain)/loss on sale of utility plant -- (521,590) (590) (119,775)
Cumulative effect of accounting change -- -- -- --
Allocation of ESOP benefits -- (468) (248) (94)
Equity in earnings of subsidiary companies (188,783) -- -- --
Cash dividends received from subsidiary companies 120,072 -- -- --
Accumulated comprehensive income - hedging derivatives -- -- -- --
Net other sources/(uses) of cash 3,169 (137,616) (82,908) (1,958)
Changes in working capital:
Receivables and accrued utility revenues, net (17,492) (144,419) 3,212 15,017
Fuel, materials and supplies -- 3,247 (13,287) 149
Accounts payable 25,788 (58,400) (48,888) 4,043
Accrued taxes (886) 1,922 1,624 (4,780)
Investments in securitizable assets -- 61,779 -- --
Unrealized gains on mark-to-market transactions -- -- -- --
Other working capital (excludes cash) (2,705) 26,440 31,095 3,204
----------- ----------- ----------- -----------
Net cash flows provided by/(used in) operating activities 182,440 44,206 251,160 64,928
----------- ----------- ----------- -----------
Investing Activities:
Investment in regulated plant:
Electric and other utility plant -- (237,423) (92,626) (30,921)
Nuclear fuel -- (1,992) (37) (140)
----------- ----------- ----------- -----------
Net cash flows used for investments in regulated plant -- (239,415) (92,663) (31,061)
Investment in NU system Money Pool (30,400) (39,200) -- --
Investment in subsidiaries 363,631 -- -- --
Investment in nuclear decommissioning trusts -- (74,866) (137) (23,037)
Investments in competitive energy assets -- -- -- --
Net proceeds from the sale of utility plant -- 827,692 24,888 175,154
Other investment activities, net 1,415 (10,164) (30,906) 817
Payment for the purchase of SENY, net of cash acquired -- -- -- --
Buyout/buydown of IPP contracts -- (1,029,008) (48,164) (80,000)
----------- ----------- ----------- -----------
Net cash flows provided by/(used in) by investing activities 334,646 (564,961) (146,982) 41,873
----------- ----------- ----------- -----------
Financing Activities:
Issuance of rate reduction bonds -- 1,438,400 525,000 155,000
Retirement of rate reduction bonds -- (79,747) (17,619) (2,683)
Repurchase of common shares (291,789) -- (260,000) (15,000)
Issuance of common shares 1,751 -- -- --
Issuance of long-term debt 263,000 -- 287,485 --
Net (decrease)/increase in short-term debt (396,000) (115,000) 83,500 (51,400)
Reacquisitions and retirements of long-term debt (21,000) (416,155) (287,485) (100,000)
Reacquisitions and retirements of preferred stock -- -- (24,268) (36,500)
Retirement of monthly income preferred securities -- (100,000) -- --
Retirement of capital lease obligation -- (145,800) -- (34,200)
Advance from parent -- -- -- --
Cash dividends on preferred stock -- (5,559) (1,286) (404)
Cash dividends on common shares (60,923) (60,072) (27,000) (22,000)
Buydown of capital lease obligation -- -- (497,508) --
Capital contributions from Northeast Utilities -- -- -- --
----------- ----------- ----------- -----------
Net cash flows (used in)/provided financing activities (504,961) 516,067 (219,181) (107,187)
----------- ----------- ----------- -----------
Net increase/(decrease) in cash for the period 12,125 (4,688) (115,003) (386)
Cash and cash equivalents - beginning of period 1,058 5,461 116,482 985
----------- ----------- ----------- -----------
Cash and cash equivalents - end of period $ 13,183 $ 773 $ 1,479 $ 599
=========== =========== =========== ===========
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 35,453 $ 120,645 $ 47,369 $ 17,939
=========== =========== =========== ===========
Income taxes $ 32,126 $ 230,144 $ (168,021) $ 6,314
=========== =========== =========== ===========
Increase in obligations:
Niantic Bay Fuel Trust and other capital leases $ -- $ 1,754 $ -- $ 411
=========== =========== =========== ===========
Seabrook Power Contracts $ -- $ -- $ (517,998) $ --
=========== =========== =========== ===========
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.
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2001
(Thousands of Dollars)
North Holyoke Northeast
Atlantic Water Power Utilities
Energy Company Service
Corporation (consolidated) Company
(b)
----------- -------------- ---------
Operating Activities:
Income/(Loss) before extraordinary loss $ 4,175 $ 4,376 $ --
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 511,172 2,106 10,831
Deferred income taxes and investment tax credits, net (185,549) 644 (7,637)
Amortization of recoverable energy costs -- -- --
Amortization of regulatory assets, net 28,366 -- --
(Gain)/loss on sale of utility plant -- -- --
Cumulative effect of accounting change -- -- --
Allocation of ESOP benefits -- (2) --
Equity in earnings of subsidiary companies -- -- --
Cash dividends received from subsidiary companies -- -- --
Accumulated comprehensive income - hedging derivatives -- -- --
Net other sources/(uses) of cash 17,291 (8,000) 27,660
Changes in working capital:
Receivables and accrued utility revenues, net 41,291 1,678 82,637
Fuel, materials and supplies (416) (1,394) (139)
Accounts payable (925) 294 (85,680)
Accrued taxes -- (785) (2,134)
Investments in securitizable assets -- -- --
Unrealized gains on mark-to-market transactions -- -- --
Other working capital (excludes cash) (5,541) (469) (16,566)
--------- --------- ---------
Net cash flows provided by/(used in) operating activities 409,864 (1,552) 8,972
--------- --------- ---------
Investing Activities:
Investment in regulated plant:
Electric and other utility plant (5,356) -- (10,699)
Nuclear fuel (12,106) -- --
--------- --------- ---------
Net cash flows used for investments in regulated plant (17,462) -- (10,699)
Investment in NU system Money Pool (4,400) 12,900 (139,400)
Investment in subsidiaries -- -- --
Investment in nuclear decommissioning trusts (7,036) -- --
Investments in competitive energy assets -- (550) --
Net proceeds from the sale of utility plant -- 17,550 --
Other investment activities, net -- 1,617 445
Payment for the purchase of SENY, net of cash acquired -- -- --
Buyout/buydown of IPP contracts -- -- --
--------- --------- ---------
Net cash flows provided by/(used in) investing activities (28,898) 31,517 (149,654)
--------- --------- ---------
Financing Activities:
Issuance of rate reduction bonds -- -- --
Retirement of rate reduction bonds -- -- --
Repurchase of common shares (125,000) -- --
Issuance of common shares -- -- --
Issuance of long-term debt -- -- --
Net (decrease)/increase in short-term debt (110,000) -- 153,600
Reacquisitions and retirements of long-term debt (135,000) (38,300) --
Reacquisitions and retirements of preferred stock -- -- --
Retirement of monthly income preferred securities -- -- --
Retirement of capital lease obligation -- -- --
Advance from parent -- 9,600 --
Cash dividends on preferred stock -- -- --
Cash dividends on common shares (11,000) -- --
Buydown of capital lease obligation -- -- --
Capital contributions from Northeast Utilities -- -- --
--------- --------- ---------
Net cash flows (used in)/provided by financing activities (381,000) (28,700) 153,600
--------- --------- ---------
Net increase/(decrease) in cash for the period (34) 1,265 12,918
Cash and cash equivalents - beginning of period 118 1,865 45,375
--------- --------- ---------
Cash and cash equivalents - end of period $ 84 $ 3,130 $ 58,293
========= ========= =========
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 15,409 $ 2,546 $ (38)
========= ========= =========
Income taxes $ 212,100 $ 2,776 $ 16,598
========= ========= =========
Increase in obligations:
Niantic Bay Fuel Trust and other capital leases $ 15,409 $ -- $ --
========= ========= =========
Seabrook Power Contracts $ 212,100 $ -- $ --
========= ========= =========
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 Cash Flows (a)
Year Ended December 31, 2001
(Thousands of Dollars)
North
Northeast Atlantic
Nuclear Energy
Energy Service
Company Corporation
--------- -----------
Operating Activities:
Income/(Loss) before extraordinary loss $ 413 $ 1
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 206 --
Deferred income taxes and investment tax credits, net 3,451 (588)
Amortization of recoverable energy costs -- --
Amortization of regulatory assets, net -- --
(Gain)/loss on sale of utility plant -- --
Cumulative effect of accounting change -- --
Allocation of ESOP benefits -- --
Equity in earnings of subsidiary companies -- --
Cash dividends received from subsidiary companies -- --
Accumulated comprehensive income - hedging derivatives -- --
Net other sources/(uses) of cash 27,569 (93)
Changes in working capital:
Receivables and accrued utility revenues, net 40,134 (1,316)
Fuel, materials and supplies 71,358 22
Accounts payable (41,772) 397
Accrued taxes -- (481)
Investments in securitizable assets -- --
Unrealized gains on mark-to-market transactions -- --
Other working capital (excludes cash) (53,723) 1,168
--------- ---------
Net cash flows provided by/(used in) operating activities 47,636 (890)
--------- ---------
Investing Activities:
Investment in regulated plant:
Electric and other utility plant -- --
Nuclear fuel -- --
--------- ---------
Net cash flows used for investments in regulated plant -- --
Investment in NU system Money Pool (47,600) --
Investment in subsidiaries -- --
Investment in nuclear decommissioning trusts -- --
Investments in competitive energy assets -- --
Net proceeds from the sale of utility plant -- --
Other investment activities, net -- --
Payment for the purchase of SENY, net of cash acquired -- --
Buyout/buydown of IPP contracts -- --
--------- ---------
Net cash flows provided by/(used in) investing activities (47,600) --
--------- ---------
Financing Activities:
Issuance of rate reduction bonds -- --
Retirement of rate reduction bonds -- --
Repurchase of common shares -- --
Issuance of common shares -- --
Issuance of long-term debt -- --
Net (decrease)/increase in short-term debt -- --
Reacquisitions and retirements of long-term debt -- --
Reacquisitions and retirements of preferred stock -- --
Retirement of monthly income preferred securities -- --
Retirement of capital lease obligation -- --
Advance from parent -- --
Cash dividends on preferred stock -- --
Cash dividends on common shares -- --
Buydown of capital lease obligation -- --
Capital contributions from Northeast Utilities -- --
--------- ---------
Net cash flows (used in)/provided by financing activities -- --
--------- ---------
Net increase/(decrease) in cash for the period 36 (890)
Cash and cash equivalents - beginning of period -- 3,095
--------- ---------
Cash and cash equivalents - end of period $ 36 $ 2,205
========= =========
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 212 $ --
========= =========
Income taxes $ (3,511) $ 1,493
========= =========
Increase in obligations:
Niantic Bay Fuel Trust and other capital leases $ -- $ --
========= =========
Seabrook Power Contracts $ -- $ --
========= =========
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.
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2001
(Thousands of Dollars)
The Rocky
The River Yankee Energy Charter Oak
Quinnehtuk Realty System, Inc. Energy, Inc.
Company Company (consolidated) (consolidated)
(b) (b)
----------- ----------- -------------- --------------
Operating Activities:
Income/(Loss) before extraordinary loss $ (93) $ -- $ 26,275 $ 931
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 54 2,445 26,578 --
Deferred income taxes and investment tax credits, net (2) 918 (3,943) 2,206
Amortization of recoverable energy costs -- -- -- --
Amortization of regulatory assets, net -- -- 7,761 --
(Gain)/loss on sale of utility plant -- -- -- --
Cumulative effect of accounting change -- -- (447) --
Allocation of ESOP benefits -- -- (47) --
Equity in earnings of subsidiary companies -- -- -- --
Cash dividends received from subsidiary companies -- -- -- --
Accumulated comprehensive income - hedging derivatives -- -- -- --
Net other sources/(uses) of cash (12) (1,263) 22,102 11,711
Changes in working capital:
Receivables and accrued utility revenues, net -- 20 5,146 (23,825)
Fuel, materials and supplies -- -- (476) --
Accounts payable (34) (6) (20,153) 11,907
Accrued taxes (32) (32) (10,562) 365
Investments in securitizable assets -- -- -- --
Unrealized gains on mark-to-market transactions -- -- -- --
Other working capital (excludes cash) (1) (913) 5,844 1,963
----------- ----------- ----------- -----------
Net cash flows provided by/(used in) operating activities (120) 1,169 58,078 5,258
----------- ----------- ----------- -----------
Investing Activities:
Investment in regulated plant:
Electric and other utility plant -- (4,045) (47,771) --
Nuclear fuel -- -- -- --
----------- ----------- ----------- -----------
Net cash flows used for investments in regulated plant -- (4,045) (47,771) --
Investment in NU system Money Pool -- -- (12,800) --
Investment in subsidiaries -- -- -- --
Investment in nuclear decommissioning trusts -- -- -- --
Investments in competitive energy assets -- -- -- --
Net proceeds from the sale of utility plant -- -- -- --
Other investment activities, net -- 4 (5,923) --
Payment for the purchase of SENY, net of cash acquired -- -- -- --
Buyout/buydown of IPP contracts -- -- -- --
----------- ----------- ----------- -----------
Net cash flows provided by/(used in) investing activities -- (4,041) (66,494) --
----------- ----------- ----------- -----------
Financing Activities:
Issuance of rate reduction bonds -- -- -- --
Retirement of rate reduction bonds -- -- -- --
Repurchase of common shares -- -- -- --
Issuance of common shares -- -- -- --
Issuance of long-term debt -- -- -- --
Net (decrease)/increase in short-term debt 100 5,200 3,400 --
Reacquisitions and retirements of long-term debt -- (2,223) (1,050) --
Reacquisitions and retirements of preferred stock -- -- -- --
Retirement of monthly income preferred securities -- -- -- --
Retirement of capital lease obligation -- -- -- --
Advance from parent -- -- -- --
Cash dividends on preferred stock -- -- -- --
Cash dividends on common shares -- -- -- (8,000)
Buydown of capital lease obligation -- -- -- --
Capital contributions from Northeast Utilities -- -- -- --
----------- ----------- ----------- -----------
Net cash flows (used in)/provided by financing activities 100 2,977 2,350 (8,000)
----------- ----------- ----------- -----------
Net increase/(decrease) in cash for the period (20) 105 (6,066) (2,742)
Cash and cash equivalents - beginning of period 44 -- 6,459 3,021
----------- ----------- ----------- -----------
Cash and cash equivalents - end of period $ 24 $ 105 $ 393 $ 279
=========== =========== =========== ===========
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 147 $ 1,818 $ 14,671 $ --
=========== =========== =========== ===========
Income taxes $ (50) $ 25 $ 25,895 $ (3,888)
=========== =========== =========== ===========
Increase in obligations:
Niantic Bay Fuel Trust and other capital leases $ -- $ -- $ -- $ --
=========== =========== =========== ===========
Seabrook Power Contracts $ -- $ -- $ -- $ --
=========== =========== =========== ===========
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.
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2001
(Thousands of Dollars)
NU
Enterprises,
Inc.
(consolidated)
(b) Eliminations Consolidated
-------------- ------------ ------------
Operating Activities:
Income/(Loss) before extraordinary loss $ (2,623) $ 210,320 $ 273,191
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 6,917 509,067 201,013
Deferred income taxes and investment tax credits, net 31,599 13,714 (116,704)
Amortization of recoverable energy costs -- (10,862) (2,031)
Amortization of regulatory assets, net 1,267 (1,629) 983,037
(Gain)/loss on sale of utility plant -- -- (641,956)
Cumulative effect of accounting change (21,985) -- (22,432)
Allocation of ESOP benefits (134) (994) --
Equity in earnings of subsidiary companies -- (188,783) --
Cash dividends received from subsidiary companies -- 120,072 --
Accumulated comprehensive income - hedging derivatives (31,416) (31,416) --
Net other sources/(uses) of cash (48,308) (92,328) (78,331)
Changes in working capital:
Receivables and accrued utility revenues, net (153,098) 205,848 (356,863)
Fuel, materials and supplies 685 4,554 55,195
Accounts payable 110,812 (233,179) 130,562
Accrued taxes (2,894) 9,210 (27,885)
Investments in securitizable assets -- -- 61,779
Unrealized gains on mark-to-market transactions (45,989) (45,989) --
Other working capital (excludes cash) 8,908 80,542 (81,837)
----------- ----------- -----------
Net cash flows provided by/(used in) operating activities (146,259) 548,147 376,738
----------- ----------- -----------
Investing Activities:
Investment in regulated plant:
Electric and other utility plant (40) (568) (428,312)
Nuclear fuel -- -- (14,275)
----------- ----------- -----------
Net cash flows used for investments in regulated plant (40) (568) (442,587)
Investment in NU system Money Pool (15,500) (276,401) --
Investment in subsidiaries -- 363,631 --
Investment in nuclear decommissioning trusts -- -- (105,076)
Investments in competitive energy assets (14,818) -- (15,368)
Net proceeds from the sale of utility plant -- (3,352) 1,048,636
Other investment activities, net (9,990) (1,008) (51,677)
Payment for the purchase of SENY, net of cash acquired (25,823) -- (25,823)
Buyout/buydown of IPP contracts -- 19,700 (1,176,872)
----------- ----------- -----------
Net cash flows provided by/(used in) investing activities (66,171) 102,002 (768,767)
----------- ----------- -----------
Financing Activities:
Issuance of rate reduction bonds -- -- 2,118,400
Retirement of rate reduction bonds -- -- (100,049)
Repurchase of common shares (75,000) (475,000) (291,789)
Issuance of common shares -- -- 1,751
Issuance of long-term debt 440,000 287,485 703,000
Net (decrease)/increase in short-term debt (316,477) 276,401 (1,019,477)
Reacquisitions and retirements of long-term debt (498) (287,484) (714,226)
Reacquisitions and retirements of preferred stock -- -- (60,768)
Retirement of monthly income preferred securities -- -- (100,000)
Retirement of capital lease obligation -- -- (180,000)
Advance from parent 4,702 14,302 --
Cash dividends on preferred stock -- -- (7,249)
Cash dividends on common shares -- (128,072) (60,923)
Buydown of capital lease obligation -- (497,508) --
Capital contributions from Northeast Utilities 132,225 132,225 --
----------- ----------- -----------
Net cash flows (used in)/provided by financing activities 184,952 (677,651) 288,670
----------- ----------- -----------
Net increase/(decrease) in cash for the period (27,478) (27,502) (103,359)
Cash and cash equivalents - beginning of period 43,555 27,502 200,017
----------- ----------- -----------
Cash and cash equivalents - end of period $ 16,077 $ 0 $ 96,658
=========== =========== ===========
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 29,735 $ 10,632 $ 275,274
=========== =========== ===========
Income taxes $ (30,960) $ 0 $ 321,041
=========== =========== ===========
Increase in obligations:
Niantic Bay Fuel Trust and other capital leases $ -- $ 15,408 $ 2,166
=========== =========== ===========
Seabrook Power Contracts $ -- $ (305,898) $ --
=========== =========== ===========
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-12
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES(a)
Consolidating Balance Sheet (b)
Assets
December 31, 2001
(Thousands of Dollars)
The
Connecticut CL&P
Light and Receivables CL&P CL&P
Power Company Corporation Capital,L.P. Funding LLC Eliminations Consolidated
------------- ----------- ------------ ----------- ------------ ------------
Utility Plant, at cost:
Electric $ 3,127,548 $ -- $ -- $ -- $ -- $ 3,127,548
Less: Accumulated provision for depreciation 1,236,638 -- -- -- -- 1,236,638
------------ ----------- ------------ ----------- ------------ -----------
1,890,910 -- -- -- -- 1,890,910
Construction work in progress 134,964 -- -- -- -- 134,964
Nuclear fuel, net 3,299 -- -- -- -- 3,299
------------ ----------- ------------ ----------- ------------ -----------
Total net utility plant 2,029,173 -- -- -- -- 2,029,173
------------ ----------- ------------ ----------- ------------ -----------
Other Property and Investments:
Nuclear decommissioning trusts, at market 6,231 -- -- -- -- 6,231
Investments in regional nuclear generating
companies, at equity 34,696 -- -- -- -- 34,696
Investments in subsidiary companies, at equity 48,311 -- -- -- 48,311 --
Other, at cost 36,502 -- -- 14,069 -- 50,572
------------ ----------- ------------ ----------- ------------ -----------
125,740 -- -- 14,069 48,311 91,499
------------ ----------- ------------ ----------- ------------ -----------
Current Assets:
Cash 610 163 -- 1 -- 773
Investments in securitizable assets (65,150) 36,367 -- -- (65,150) 36,367
Notes receivable from affiliated companies 77,200 -- -- 1,358,653 1,358,653 77,200
Receivables, net 247,801 -- -- -- -- 247,801
Accounts receivable from affiliated companies 78,568 109,856 -- -- 166,291 22,134
Unbilled revenues 7,492 -- -- -- -- 7,492
Fuel, materials, and supplies, at average cost 33,085 -- -- -- -- 33,085
Prepayments and other 17,703 -- -- -- -- 17,703
------------ ----------- ------------ ----------- ------------ -----------
397,309 146,386 -- 1,358,654 1,459,794 442,555
------------ ----------- ------------ ----------- ------------ -----------
Deferred Charges:
Regulatory assets 1,877,191 -- -- -- -- 1,877,191
Unamortized debt expense 6,203 -- -- -- -- 6,203
Prepaid pension 233,692 -- -- -- -- 233,692
Other 47,244 -- -- -- -- 47,244
------------ ----------- ------------ ----------- ------------ -----------
2,164,330 -- -- -- -- 2,164,330
------------ ----------- ------------ ----------- ------------ -----------
Total Assets $ 4,716,552 $ 146,386 $ -- $ 1,372,723 $ 1,508,105 $ 4,727,557
============ =========== ============ =========== ============ ===========
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 and the Connecticut Steam Company.
(b) Not covered by auditors' report.
F-13
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES(a)
Consolidating Balance Sheet (b)
Capitalization and Liabilities
December 31, 2001
(Thousands of Dollars)
The
Connecticut CL&P
Light and Receivables CL&P CL&P
Power Company Corporation Capital,L.P. Funding LLC Eliminations Consolidated
------------- ----------- ------------ ----------- ------------ ------------
Capitalization:
Common stockholder's equity:
Common stock $ 75,849 $ -- $ -- $ -- $ -- $ 75,849
Capital surplus, paid in 414,018 70,829 -- 7,193 78,022 414,018
Retained earnings 286,901 41,058 -- -- 41,058 286,901
Accumulated other comprehensive income 67 -- -- -- -- 67
------------ ----------- ------------ ----------- ------------ -----------
Total common stockholder's equity 776,835 111,887 -- 7,193 119,080 776,835
Preferred stock not subject to mandatory
redemption 116,200 -- -- -- -- 116,200
Long-term debt 824,349 -- -- -- -- 824,349
------------ ----------- ------------ ----------- ------------ -----------
Total capitalization 1,717,384 111,887 -- 7,193 119,080 1,717,384
------------ ----------- ------------ ----------- ------------ -----------
Rate Reduction Bonds -- -- -- 1,358,653 -- 1,358,653
------------ ----------- ------------ ----------- ------------ -----------
Obligations under Capital Leases 15,499 -- -- -- -- 15,499
------------ ----------- ------------ ----------- ------------ -----------
Current Liabilities:
Notes payable to affiliated companies 1,358,653 -- -- -- 1,358,653 --
Obligations under capital leases-current
portion 541 -- -- -- -- 541
Accounts payable 132,593 -- -- -- -- 132,593
Accounts payable to affiliated companies 85,057 -- -- -- -- 85,057
Accrued taxes 30,696 4,127 -- -- -- 34,823
Accrued interest 10,369 30,372 -- -- 30,372 10,369
Other 39,923 -- -- 6,877 -- 46,801
------------ ----------- ------------ ----------- ------------ -----------
1,657,832 34,499 -- 6,877 1,389,025 310,184
------------ ----------- ------------ ----------- ------------ -----------
Deferred Credits and Other Long-term
Liabilities:
Accumulated deferred income taxes 820,444 -- -- -- -- 820,444
Accumulated deferred investment tax credit 95,996 -- -- -- -- 95,996
Deferred contractual obligations 141,497 -- -- -- -- 141,497
Other 267,900 -- -- -- -- 267,900
------------ ----------- ------------ ----------- ------------ -----------
1,325,837 -- -- -- -- 1,325,837
------------ ----------- ------------ ----------- ------------ -----------
Total Capitalization and Liabilities $ 4,716,552 $ 146,386 $ -- $ 1,372,723 $ 1,508,105 $ 4,727,557
============ =========== ============ =========== ============ ===========
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 and the Connecticut Steam Company.
(b) Not covered by auditors' report.
F-14
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Statement of Income (b)
Year Ended December 31, 2001
(Thousands of Dollars)
The Connecticut CL&P
Light and Power Receivables CL&P CL&P
Company Corporation Capital, L.P. Funding LLC
--------------- ----------- ------------- -----------
Operating Revenues $ 2,646,123 $ -- $ -- $ 61,239
----------- ----------- ----------- -----------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power 1,514,418 -- -- --
Other 309,998 479 -- 595
Maintenance 106,228 -- -- --
Depreciation 96,212 -- -- --
Amortization of regulatory assets 746,693 -- -- --
Federal and state income taxes 88,218 -- -- --
Taxes other than income taxes 130,656 -- -- --
Gain on sale of utility plant (521,590) -- -- --
----------- ----------- ----------- -----------
Total operating expenses 2,470,833 479 -- 595
----------- ----------- ----------- -----------
Operating Income/(Loss) 175,290 (479) -- 60,644
----------- ----------- ----------- -----------
Other Income/(loss):
Equity in earnings of subsidiaries 13,187 -- -- --
Equity in earnings of regional nuclear
generating companies 1,128 -- -- --
Gain related to Millstone sale 29,461 -- -- --
Other, net 6,163 25,108 3,196 554
Minority interest in loss of subsidiary (3,100) -- -- --
Income taxes 11,999 (8,682) -- --
----------- ----------- ----------- -----------
Other income/(loss), net 58,838 16,426 3,196 554
----------- ----------- ----------- -----------
Income before interest charges 234,128 15,947 3,196 61,198
----------- ----------- ----------- -----------
Interest Charges:
Interest on long-term debt 59,724 -- -- --
Interest on rate reduction bonds 60,644 -- -- 61,198
Other interest 3,957 2,857 -- --
----------- ----------- ----------- -----------
Interest charges, net 124,325 2,857 -- 61,198
----------- ----------- ----------- -----------
Net Income $ 109,803 $ 13,090 $ 3,196 $ --
=========== =========== =========== ===========
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 and The Connecticut Steam Company.
(b) Not covered by auditors' report.
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Statement of Income (b)
Year Ended December 31, 2001
(Thousands of Dollars)
Eliminations Consolidated
------------ ------------
Operating Revenues $ 61,239 $ 2,646,123
----------- -----------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power -- 1,514,418
Other 595 310,477
Maintenance -- 106,228
Depreciation -- 96,212
Amortization of regulatory assets -- 746,693
Federal and state income taxes -- 88,218
Taxes other than income taxes -- 130,656
Gain on sale of utility plant -- (521,590)
----------- -----------
Total operating expenses 595 2,471,312
----------- -----------
Operating Income/(Loss) 60,644 174,811
----------- -----------
Other Income/(loss):
Equity in earnings of subsidiaries 13,187 --
Equity in earnings of regional nuclear
generating companies -- 1,128
Gain related to Millstone sale -- 29,461
Other, net 9,706 25,315
Minority interest in loss of subsidiary -- (3,100)
Income taxes -- 3,317
----------- -----------
Other income/(loss), net 22,893 56,121
----------- -----------
Income before interest charges 83,537 230,932
----------- -----------
Interest Charges:
Interest on long-term debt -- 59,724
Interest on rate reduction bonds 61,198 60,644
Other interest 6,053 761
----------- -----------
Interest charges, net 67,251 121,129
----------- -----------
Net Income $ 16,286 $ 109,803
=========== ===========
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 and The Connecticut Steam Company.
(b) Not covered by auditors' report.
F-15
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Statement of Retained Earnings (b)
Year Ended December 31, 2001
(Thousands of Dollars)
Research
The Connecticut CL&P Park,
Light and Power Receivables CL&P CL&P Incorporated
Company Corporation Capital, L.P. Funding LLC (Inactive)
--------------- ----------- ------------- ----------- ------------
Balance at beginning of period $ 243,197 $ 27,968 $ -- $ -- $ 51
Additions:
Net income 109,803 13,090 3,196 -- --
--------------- ----------- ------------- ----------- ------------
353,000 41,058 3,196 -- 51
--------------- ----------- ------------- ----------- ------------
Deductions:
Dividends declared:
Preferred stock (at required annual
rates) 5,559 -- -- -- --
Common stock $7.92 per share 60,072 -- -- -- --
MIPS Partnership distribution -- -- 3,100 -- --
Cash distribution to The Connecticut
Light and Power Company -- -- 96 -- --
Close out of retained earnings due
to dissolving of subsidiary -- -- -- -- 51
Allocation of benefits-ESOP 468 -- -- -- --
--------------- ----------- ------------- ----------- ------------
Total deductions 66,099 -- 3,196 -- 51
--------------- ----------- ------------- ----------- ------------
Balance at end of period $ 286,901 $ 41,058 $ -- $ -- $ --
=============== =========== ============= =========== ============
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Statement of Retained Earnings (b)
Year Ended December 31, 2001
(Thousands of Dollars)
Eliminations Consolidated
------------ ------------
Balance at beginning of period $ 28,019 $ 243,197
Additions:
Net income 16,286 109,803
------------ ------------
44,305 353,000
------------ ------------
Deductions:
Dividends declared:
Preferred stock (at required annual
rates) -- 5,559
Common stock $7.92 per share -- 60,072
MIPS Partnership distribution 3,100 --
Cash distribution to The Connecticut
Light and Power Company 96 --
Close out of retained earnings due
to dissolving of subsidiary 51 --
Allocation of benefits-ESOP -- 468
------------ ------------
Total deductions 3,247 66,099
------------ ------------
Balance at end of period $ 41,058 $ 286,901
============ ============
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Statement of Capital Surplus, Paid In (b)
Year Ended December 31, 2001
(Thousands of Dollars)
Research
The Connecticut CL&P Park,
Light and Power Receivables CL&P CL&P Incorporated
Company Corporation Capital, L.P. Funding LLC (Inactive)
--------------- ------------- ------------- ------------- -------------
Balance at beginning of period $ 413,192 $ 70,829 $ 3,100 $ -- $ --
Close out of Capital Surplus, Paid In
due to dissolving of subsidiary -- -- (3,100) -- --
Capital contribution from The Connecticut
Light and Power Company -- -- -- 7,193 --
Capital stock expenses, net 826 -- -- -- --
------------- ------------- ------------- ------------- -------------
Balance at end of period $ 414,018 $ 70,829 $ -- $ 7,193 $ --
============= ============= ============= ============= =============
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 Connecticut Steam Company and The Nutmeg Power Company.
(b) Not covered by auditors' report.
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Statement of Capital Surplus, Paid In (b)
Year Ended December 31, 2001
(Thousands of Dollars)
Eliminations Consolidated
------------- -------------
Balance at beginning of period $ 73,929 $ 413,192
Close out of Capital Surplus, Paid In
due to dissolving of subsidiary (3,100) --
Capital contribution from The Connecticut
Light and Power Company 7,193 --
Capital stock expenses, net -- 826
------------- -------------
Balance at end of period $ 78,022 $ 414,018
============= =============
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 Connecticut Steam Company and The Nutmeg Power Company.
(b) Not covered by auditors' report.
F-16
THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)(b)
Year Ended December 31, 2001
(Thousands of Dollars)
The
Connecticut CL&P Research
Light and Receivables CL&P Park,
Power Company Corporation Capital, LP Incorporated
------------- ------------- ------------- -------------
Operating Activities:
Income after interest charges $ 109,803 $ 13,090 $ 3,196 $ --
Adjustments to reconcile to net cash
provided by operating activities:
Depreciation 96,212 -- -- --
Deferred income taxes and investment tax credits, net (144,559) -- -- --
Amortization of regulatory assets, net 746,693 -- -- --
Gain on sale of utility plant (521,590) -- -- --
Allocation of ESOP benefits (468) -- -- --
Net other uses of cash (132,443) -- -- --
Changes in working capital:
Receivables (154,720) (79,136) -- --
Fuel, materials and supplies 3,247 -- -- --
Accounts payable (58,400) -- (288) --
Accrued taxes 517 1,405 -- --
Investment in securitizable assets 86,869 231,779 -- --
Other working capital (excludes cash) 19,561 2,857 -- --
------------- ------------- ------------- -------------
Net cash flows provided by operating activities 50,722 169,995 2,908 --
------------- ------------- ------------- -------------
Investing Activities:
Investments in regulated plant:
Electric utility plant (237,423) -- -- --
Nuclear fuel (1,992) -- -- --
------------- ------------- ------------- -------------
Net cash flows used for investments in regulated plant (239,415) -- -- --
Investment in NU system Money Pool (39,200) -- -- --
Investments in nuclear decommissioning trusts (74,866) -- -- --
Other investment activities, net (13,219) -- -- --
Net proceeds from the sale of assets 827,681 -- -- --
Buyout/buydown of IPP contracts (1,029,008) -- -- --
------------- ------------- ------------- -------------
Net cash flows used in investing activities (568,027) -- -- --
------------- ------------- ------------- -------------
Financing Activities:
Dissolution of Research Park -- -- -- (56)
Issuance of rate reduction bonds -- -- -- --
Retirement of rate reduction bonds -- -- -- --
Net decrease in short-term debt (115,000) (170,000) -- --
Intercompany Notes Receivable/Notes Payable 1,358,653 -- -- --
Reacquisitions and retirements of long-term debt (419,255) -- -- --
Retirement of monthly income preferred securities (100,000) -- (100,000) --
MIPS partnership distribution -- -- (3,100) --
Cash distribution to affiliated company -- -- (96) --
Retirement of capital lease obligation (145,800) -- -- --
Repayment of long-term loan receivable -- -- 103,100
Capital contributions -- -- (3,100) --
Cash dividends on preferred stock (5,559) -- -- --
Cash dividends on common shares (60,072) -- -- --
------------- ------------- ------------- -------------
Net cash flows provided by/(used in) financing activities 512,967 (170,000) (3,196) (56)
------------- ------------- ------------- -------------
Net (decrease)/increase in cash for the period (4,338) (5) (288) (56)
Cash - beginning of period 4,948 168 288 56
------------- ------------- ------------- -------------
Cash - end of period $ 610 $ 163 $ -- $ --
============= ============= ============= =============
Supplemental Cash Flow Information:
Cash paid during the year for:
Interest, net of amounts capitalized $ 123,841 $ -- $ -- $ --
============= ============= ============= =============
Income taxes $ 222,867 $ 7,277 $ -- $ --
============= ============= ============= =============
Increase in obligations:
Niantic Bay Fuel Trust and other capital leases $ 1,754 $ -- $ -- $ --
============= ============= ============= =============
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 City and Suburban Electric and Gas
Company, The Connecticut Transmission Corporation, The Connecticut Steam
Company and The Nutmeg Power Company.
(b) Not covered by auditors' report.
THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)(b)
Year Ended December 31, 2001
(Thousands of Dollars)
CL&P
Funding LLC Eliminations Consolidated
----------- ------------- -------------
Operating Activities:
Income after interest charges $ -- $ 16,286 $ 109,803
Adjustments to reconcile to net cash
provided by operating activities:
Depreciation -- -- 96,212
Deferred income taxes and investment tax credits, net -- -- (144,559)
Amortization of regulatory assets, net -- -- 746,693
Gain on sale of utility plant -- -- (521,590)
Allocation of ESOP benefits -- -- (468)
Net other uses of cash -- -- (132,443)
Changes in working capital:
Receivables -- (89,439) (144,419)
Fuel, materials and supplies -- -- 3,247
Accounts payable -- (288) (58,400)
Accrued taxes -- -- 1,922
Investment in securitizable assets -- 256,869 61,779
Other working capital (excludes cash) 6,877 2,857 26,440
------------- ------------- -------------
Net cash flows provided by operating activities 6,877 186,285 44,217
------------- ------------- -------------
Investing Activities:
Investments in regulated plant:
Electric utility plant -- -- (237,423)
Nuclear fuel -- -- (1,992)
------------- ------------- -------------
Net cash flows used for investments in regulated plant -- -- (239,415)
Investment in NU system Money Pool -- -- (39,200)
Investments in nuclear decommissioning trusts -- -- (74,866)
Other investment activities, net (14,069) (17,124) (10,164)
Net proceeds from the sale of assets -- -- 827,681
Buyout/buydown of IPP contracts -- -- (1,029,008)
------------- ------------- -------------
Net cash flows used in investing activities (14,069) (17,124) (564,972)
------------- ------------- -------------
Financing Activities:
Dissolution of Research Park -- (56) --
Issuance of rate reduction bonds 1,438,400 -- 1,438,400
Retirement of rate reduction bonds (79,747) -- (79,747)
Net decrease in short-term debt -- (170,000) (115,000)
Intercompany Notes Receivable/Notes Payable (1,358,653) -- --
Reacquisitions and retirements of long-term debt -- (3,100) (416,155)
Retirement of monthly income preferred securities -- (100,000) (100,000)
MIPS partnership distribution -- (3,100) --
Cash distribution to affiliated company -- (96) --
Retirement of capital lease obligation -- -- (145,800)
Repayment of long-term loan receivable -- 103,100 --
Capital contributions 7,193 4,093 --
Cash dividends on preferred stock -- -- (5,559)
Cash dividends on common shares -- -- (60,072)
------------- ------------- -------------
Net cash flows provided by/(used in) financing activities 7,193 (169,159) 516,067
------------- ------------- -------------
Net (decrease)/increase in cash for the period 1 -- (4,688)
Cash - beginning of period -- -- 5,461
------------- ------------- -------------
Cash - end of period $ 1 $ -- $ 773
============= ============= =============
Supplemental Cash Flow Information:
Cash paid during the year for:
Interest, net of amounts capitalized $ -- $ 3,196 $ 120,645
============= ============= =============
Income taxes $ -- $ -- $ 230,144
============= ============= =============
Increase in obligations:
Niantic Bay Fuel Trust and other capital leases $ -- $ -- $ 1,754
============= ============= =============
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 City and Suburban Electric and Gas
Company, The Connecticut Transmission Corporation, The Connecticut Steam
Company and The Nutmeg Power Company.
(b) Not covered by auditors' report.
F-17
This Page Intentionally Left Blank
F-18
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2001
(Thousands of Dollars)
Public Service
Company of PSNH PSNH
New Hampshire Funding LLC Funding LLC 2 Properties, Inc.
-------------- ------------ ------------- ----------------
Utility Plant, at cost:
Electric $ 1,447,754 $ -- $ -- $ 200
Other -- -- -- 6,221
------------ ------------ ------------ ------------
1,447,754 -- -- 6,421
Less: Accumulated provision for depreciation 687,396 -- -- 2,000
------------ ------------ ------------ ------------
760,358 -- -- 4,421
Construction work in progress 44,961 -- -- --
------------ ------------ ------------ ------------
Total net utility plant 805,319 -- -- 4,421
------------ ------------ ------------ ------------
Other Property and Investments:
Investments in regional nuclear generating
companies, at equity 8,510 -- -- --
Investments in subsidiary companies, at equity 8,347 -- -- --
Other, at cost 2,028 33,628 -- 181
------------ ------------ ------------ ------------
18,885 33,628 -- 181
------------ ------------ ------------ ------------
Current Assets:
Cash 943 1 1 533
Notes receivable from affiliated companies -- 498,184 -- --
Receivables, net 70,540 -- -- --
Accounts receivable from affiliated companies 13,361 -- -- 92
Taxes receivable -- -- -- 204
Unbilled revenues 29,268 -- -- --
Fuel, materials, and supplies, at average cost 42,047 -- -- --
Prepayments and other 10,166 -- -- 46
------------ ------------ ------------ ------------
166,325 498,185 1 875
------------ ------------ ------------ ------------
Deferred Charges:
Regulatory assets 1,046,760 -- -- --
Accumulated deferred income taxes -- -- -- 83
Unamortized debt expense 7,939 -- -- --
Other 19,128 -- -- --
------------ ------------ ------------ ------------
1,073,827 -- -- 83
------------ ------------ ------------ ------------
Total Assets $ 2,064,356 $ 531,813 $ 1 $ 5,560
============ ============ ============ ============
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.
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2001
(Thousands of Dollars)
Eliminations Consolidated
------------ ------------
Utility Plant, at cost:
Electric $ -- $ 1,447,955
Other -- 6,221
------------ ------------
-- 1,454,176
Less: Accumulated provision for depreciation -- 689,397
------------ ------------
-- 764,779
Construction work in progress -- 44,961
------------ ------------
Total net utility plant -- 809,740
------------ ------------
Other Property and Investments:
Investments in regional nuclear generating
companies, at equity -- 8,510
Investments in subsidiary companies, at equity 8,347 --
Other, at cost -- 35,837
------------ ------------
8,347 44,347
------------ ------------
Current Assets:
Cash -- 1,479
Notes receivable from affiliated companies 498,184 --
Receivables, net -- 70,540
Accounts receivable from affiliated companies 398 13,055
Taxes receivable 204 --
Unbilled revenues -- 29,268
Fuel, materials, and supplies, at average cost -- 42,047
Prepayments and other -- 10,211
------------ ------------
498,786 166,600
------------ ------------
Deferred Charges:
Regulatory assets -- 1,046,760
Accumulated deferred income taxes 83 --
Unamortized debt expense -- 7,939
Other -- 19,128
------------ ------------
83 1,073,827
------------ ------------
Total Assets $ 507,216 $ 2,094,514
============ ============
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-19
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2001
(Thousands of Dollars)
Public Service
Company of PSNH PSNH
New Hampshire Funding LLC Funding LLC 2 Properties, Inc.
-------------- ------------ ------------- ----------------
Capitalization:
Common stockholder's equity:
Common stock $ -- $ -- $ -- $ 1
Capital surplus, paid in 165,000 3,126 1 --
Retained earnings 176,419 -- -- 5,219
Accumulated other comprehensive income 406 -- -- --
------------ ------------ ------------ ------------
Total common stockholder's equity 341,825 3,126 1 5,220
Long-term debt 407,285 -- -- --
------------ ------------ ------------ ------------
Total capitalization 749,110 3,126 1 5,220
------------ ------------ ------------ ------------
Rate Reduction Bonds -- 507,381 -- --
------------ ------------ ------------ ------------
Obligations under Seabrook Power Contracts
and Other Capital Leases 86,111 -- -- --
------------ ------------ ------------ ------------
Current Liabilities:
Notes payable to banks 60,500 -- -- --
Notes payable to affiliated companies 521,184 -- -- --
Obligations under Seabrook Power Contracts
and other capital leases-current portion 24,164 -- -- --
Accounts payable 32,285 235 -- --
Accounts payable to affiliated companies 18,558 -- -- 332
Accrued taxes 2,477 -- -- 8
Accrued interest 840 8,588 -- --
Other 12,685 12,479 -- --
------------ ------------ ------------ ------------
672,693 21,302 -- 340
------------ ------------ ------------ ------------
Deferred Credits and Other Long-term Liabilities:
Accumulated deferred income taxes 423,133 -- -- --
Accumulated deferred investment tax credits 12,015 -- -- --
Deferred contractual obligations 37,712 -- -- --
Deferred pension 37,326 -- -- --
Other 46,256 4 -- --
------------ ------------ ------------ ------------
556,442 4 -- --
------------ ------------ ------------ ------------
Total Capitalization and Liabilities $ 2,064,356 $ 531,813 $ 1 $ 5,560
============ ============ ============ ============
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.
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2001
(Thousands of Dollars)
Eliminations Consolidated
------------ ------------
Capitalization:
Common stockholder's equity:
Common stock $ 1 $ --
Capital surplus, paid in 3,127 165,000
Retained earnings 5,219 176,419
Accumulated other comprehensive income -- 406
------------ ------------
Total common stockholder's equity 8,347 341,825
Long-term debt -- 407,285
------------ ------------
Total capitalization 8,347 749,110
------------ ------------
Rate Reduction Bonds -- 507,381
------------ ------------
Obligations under Seabrook Power Contracts
and Other Capital Leases -- 86,111
------------ ------------
Current Liabilities:
Notes payable to banks -- 60,500
Notes payable to affiliated companies 498,184 23,000
Obligations under Seabrook Power Contracts
and other capital leases-current portion -- 24,164
Accounts payable 235 32,285
Accounts payable to affiliated companies 163 18,727
Accrued taxes 204 2,281
Accrued interest -- 9,428
Other -- 25,164
------------ ------------
498,786 195,549
------------ ------------
Deferred Credits and Other Long-term Liabilities:
Accumulated deferred income taxes 83 423,050
Accumulated deferred investment tax credits -- 12,015
Deferred contractual obligations -- 37,712
Deferred pension -- 37,326
Other -- 46,260
------------ ------------
83 556,363
------------ ------------
Total Capitalization and Liabilities $ 507,216 $ 2,094,514
============ ============
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-20
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Public Service
Company of PSNH PSNH
New Hampshire Funding LLC Funding LLC 2 Properties, Inc.
-------------- ------------ ------------- ----------------
Operating Revenues $ 1,171,620 $ 21,974 $ -- $ 876
------------ ------------ ------------ ------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power 713,668 -- -- --
Other 124,919 1,253 -- 14
Maintenance 56,276 -- -- --
Depreciation 39,741 -- -- --
Amortization of regulatory assets 65,445 -- -- --
Federal and state income taxes 30,105 -- -- 1,949
Taxes other than income taxes 38,224 -- -- 151
Gain on sale of utility plant (590) -- -- --
------------ ------------ ------------ ------------
Total operating expenses 1,067,788 1,253 -- 2,114
------------ ------------ ------------ ------------
Operating Income/(Loss) 103,832 20,721 -- (1,238)
------------ ------------ ------------ ------------
Other Income/(loss):
Equity in earnings of subsidiaries 2,537 -- -- --
Equity in earnings of regional nuclear
generating companies 473 -- -- --
Gain related to Millstone sale 25,924 -- -- --
Other, net 6,471 310 -- 3,881
Income taxes (6,517) -- -- --
------------ ------------ ------------ ------------
Other income, net 28,888 310 -- 3,881
------------ ------------ ------------ ------------
Income before interest charges 132,720 21,031 -- 2,643
------------ ------------ ------------ ------------
Interest Charges:
Interest on long-term debt 30,201 -- -- --
Interest on rate reduction bonds 20,721 21,031 -- --
Other interest 22 -- -- 106
------------ ------------ ------------ ------------
Interest charges, net 50,944 21,031 -- 106
------------ ------------ ------------ ------------
Net Income $ 81,776 $ -- $ -- $ 2,537
============ ============ ============ ============
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.
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Eliminations Consolidated
------------ ------------
Operating Revenues $ 22,783 $ 1,171,686
------------ ------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power -- 713,668
Other 2,062 124,123
Maintenance -- 56,276
Depreciation -- 39,741
Amortization of regulatory assets -- 65,445
Federal and state income taxes -- 32,054
Taxes other than income taxes -- 38,375
Gain on sale of utility plant -- (590)
------------ ------------
Total operating expenses 2,062 1,069,092
------------ ------------
Operating Income/(Loss) 20,721 102,594
------------ ------------
Other Income/(loss):
Equity in earnings of subsidiaries 2,537 --
Equity in earnings of regional nuclear
generating companies -- 473
Gain related to Millstone sale -- 25,924
Other, net 416 10,246
Income taxes -- (6,517)
------------ ------------
Other income, net 2,953 30,126
------------ ------------
Income before interest charges 23,674 132,720
------------ ------------
Interest Charges:
Interest on long-term debt -- 30,201
Interest on rate reduction bonds 21,031 20,721
Other interest 106 22
------------ ------------
Interest charges, net 21,137 50,944
------------ ------------
Net Income $ 2,537 $ 81,776
============ ============
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-21
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Public Service
Company of PSNH PSNH
New Hampshire Funding LLC Funding LLC 2 Properties, Inc.
--------------- ------------ ------------- ----------------
Balance at beginning of period $ 123,177 $ -- $ -- $ 3,532
Additions:
Net income 81,776 -- -- 2,537
------------ ------------ ------------ ------------
204,953 -- -- 6,069
------------ ------------ ------------ ------------
Deductions:
Dividends declared:
Common stock $69,587.622 per share 27,000 -- -- --
Common stock $4,250.00 per share -- -- -- 850
Preferred stock (at required annual rate) 1,286 -- -- --
Allocation of benefits-ESOP 248 -- -- --
------------ ------------ ------------ ------------
Total deductions 28,534 -- -- 850
------------ ------------ ------------ ------------
Balance at end of period $ 176,419 $ -- $ -- $ 5,219
============ ============ ============ ============
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Eliminations Consolidated
------------ ------------
Balance at beginning of period $ 3,532 $ 123,177
Additions:
Net income 2,537 81,776
------------ ------------
6,069 204,953
------------ ------------
Deductions:
Dividends declared:
Common stock $69,587.622 per share -- 27,000
Common stock $4,250.00 per share 850 --
Preferred stock (at required annual rate) -- 1,286
Allocation of benefits-ESOP -- 248
------------ ------------
Total deductions 850 28,534
------------ ------------
Balance at end of period $ 5,219 $ 176,419
============ ============
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Public Service
Company of PSNH PSNH
New Hampshire Funding LLC Funding LLC 2 Properties, Inc.
--------------- ------------ ------------- ----------------
Balance at beginning of period $ 424,909 $ -- $ -- $ --
Repurchase of common stock (259,999) -- -- --
Capital contribution from Public Service
Company of New Hampshire -- 3,126 1 --
Capital stock expenses, net 90 -- -- --
------------ ------------ ------------ ------------
Balance at end of period $ 165,000 $ 3,126 $ 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.
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Eliminations Consolidated
------------ ------------
Balance at beginning of period $ -- $ 424,909
Repurchase of common stock -- (259,999)
Capital contribution from Public Service
Company of New Hampshire 3,127 --
Capital stock expenses, net -- 90
------------ ------------
Balance at end of period $ 3,127 $ 165,000
============ ============
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-22
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a) (b)
Year Ended December 31, 2001
(Thousands of Dollars)
Public Service
Company of PSNH PSNH Properties,
New Hampshire Funding LLC Funding LLC 2 Inc.
-------------- ----------- -------------- -----------
Operating Activities:
Income before extraordinary loss $ 81,776 $ -- $ -- $ 2,537
Adjustments to reconcile to net cash
provided by operating activities:
Depreciation 39,741 -- -- --
Deferred income taxes and investment tax credits, net 195,710 -- -- (288)
Deferral of recoverable energy costs, net (21,234) -- -- --
Amortization of regulatory assets, net 65,445 -- -- --
Allocation of ESOP benefits (248) -- -- --
Net other sources of cash (84,417) 4 -- 916
Changes in working capital:
Receivables and unbilled revenues 3,465 -- -- 61
Fuel, materials and supplies (13,287) -- -- --
Accounts payable (49,161) 235 -- (276)
Accrued taxes 1,821 -- -- 7
Other working capital (excludes cash) 10,018 21,067 -- (195)
---------- ---------- -------------- ----------
Net cash flows provided by operating activities 229,629 21,306 -- 2,762
---------- ---------- -------------- ----------
Investing Activities:
Investment in regulated plant:
Electric utility plant (92,626) -- -- --
Nuclear fuel (37) -- -- --
---------- ---------- -------------- ----------
Net cash flows used for investments in regulated plant (92,663) -- -- --
Investment in nuclear decommissioning trusts (137) -- -- --
Other investment activities, net 633 (33,628) -- 69
Net proceeds from the sale of utility plant 24,888 -- -- --
Buyout of IPP contract (48,164) -- -- --
---------- ---------- -------------- ----------
Net cash flows (used in)/provided by investing activities (115,443) (33,628) -- 69
---------- ---------- -------------- ----------
Financing Activities:
Repurchase of common stock (260,000) -- -- --
Issuance of long-term debt 287,485 -- -- --
Issuance of rate reduction bonds -- 525,000 -- --
Retirement of rate reduction bonds -- (17,619) -- --
Net increase in short-term debt 83,500 -- -- --
Intercompany Notes Receivable/Notes Payable 498,184 (498,184) -- --
Reacquisitions and retirements of long-term debt (287,485) -- -- (2,795)
Reacquisitions and retirements of preferred stock (24,268) -- -- --
Buydown of capital lease obligation (497,508) -- -- --
Capital contributions from parent -- 3,126 1 --
Cash dividends on preferred stock (1,286) -- -- --
Cash dividends on common stock (27,000) -- -- (850)
---------- ---------- -------------- ----------
Net cash flows (used in)/provided by financing activities (228,378) 12,323 1 (3,645)
---------- ---------- -------------- ----------
Net (decrease)/increase in cash for the period (114,192) 1 1 (814)
Cash and cash equivalents - beginning of period 115,135 -- -- 1,347
---------- ---------- -------------- ----------
Cash and cash equivalents - end of period $ 943 $ 1 $ 1 $ 533
========== ========== ============== ==========
Supplemental Cash Flow Information:
Cash paid during the year for:
Interest, net of amounts capitalized $ 55,957 $ (8,588) $ -- $ 106
========== ========== ============== ==========
Income taxes $ (170,442) $ -- $ -- $ 2,421
========== ========== ============== ==========
Increase in obligations:
Seabrook Power Contracts and other capital leases $ (517,998) $ -- $ -- $ --
========== ========== ============== ==========
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 is New Hampshire Electric Company which is an inactive
subsidiary.
(b) Not covered by auditors' report.
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a) (b)
Year Ended December 31, 2001
(Thousands of Dollars)
Eliminations Consolidated
------------ ------------
Operating Activities:
Income before extraordinary loss $ 2,537 $ 81,776
Adjustments to reconcile to net cash
provided by operating activities:
Depreciation -- 39,741
Deferred income taxes and investment tax credits, net -- 195,422
Deferral of recoverable energy costs, net -- (21,234)
Amortization of regulatory assets, net -- 65,445
Allocation of ESOP benefits -- (248)
Net other sources of cash 2 (83,498)
Changes in working capital:
Receivables and unbilled revenues 314 3,212
Fuel, materials and supplies -- (13,287)
Accounts payable (314) (48,888)
Accrued taxes 204 1,624
Other working capital (excludes cash) (205) 31,095
---------- ----------
Net cash flows provided by operating activities 2,538 251,160
---------- ----------
Investing Activities:
Investment in regulated plant:
Electric utility plant -- (92,626)
Nuclear fuel -- (37)
---------- ----------
Net cash flows used for investments in regulated plant -- (92,663)
Investment in nuclear decommissioning trusts -- (137)
Other investment activities, net (2,020) (30,906)
Net proceeds from the sale of utility plant -- 24,888
Buyout of IPP contract -- (48,164)
---------- ----------
Net cash flows (used in)/provided by investing activities (2,020) (146,982)
---------- ----------
Financing Activities:
Repurchase of common stock -- (260,000)
Issuance of long-term debt -- 287,485
Issuance of rate reduction bonds -- 525,000
Retirement of rate reduction bonds -- (17,619)
Net increase in short-term debt -- 83,500
Intercompany Notes Receivable/Notes Payable -- --
Reacquisitions and retirements of long-term debt (2,795) (287,485)
Reacquisitions and retirements of preferred stock -- (24,268)
Buydown of capital lease obligation -- (497,508)
Capital contributions from parent 3,127 --
Cash dividends on preferred stock -- (1,286)
Cash dividends on common stock (850) (27,000)
---------- ----------
Net cash flows (used in)/provided by financing activities (518) (219,181)
---------- ----------
Net (decrease)/increase in cash for the period -- (115,003)
Cash and cash equivalents - beginning of period -- 116,482
---------- ----------
Cash and cash equivalents - end of period $ -- $ 1,479
========== ==========
Supplemental Cash Flow Information:
Cash paid during the year for:
Interest, net of amounts capitalized $ 106 $ 47,369
========== ==========
Income taxes $ -- $ (168,021)
========== ==========
Increase in obligations:
Seabrook Power Contracts and other capital leases $ -- $ (517,998)
========== ==========
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 is New Hampshire Electric Company which is an inactive
subsidiary.
(b) Not covered by auditors' report.
F-23
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F-24
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2001
(Thousands of Dollars)
Western WMECO WMECO
Massachusetts Funding Receivables
Electric Company LLC Corporation Eliminations Consolidated
---------------- -------- ------------ ------------ ------------
Utility Plant, at cost:
Electric $564,857 $ -- $ -- $ -- $564,857
Less: Accumulated provision for depreciation 186,784 -- -- -- 186,784
-------- -------- ------------ -------- --------
378,073 -- -- -- 378,073
Construction work in progress 18,326 -- -- -- 18,326
-------- -------- ------------ -------- --------
Total net utility plant 396,399 -- -- -- 396,399
-------- -------- ------------ -------- --------
Other Property and Investments:
Investments in regional nuclear generating
companies, at equity 9,300 -- -- -- 9,300
Investments in subsidiary companies, at equity 776 -- -- 776 --
Other, at cost 4,057 3,191 -- -- 7,248
-------- -------- ------------ -------- --------
14,133 3,191 -- 776 16,548
-------- -------- ------------ -------- --------
Current Assets:
Cash 598 1 -- -- 599
Notes receivable from affiliated companies -- 151,401 -- 151,401 --
Receivables, net 43,761 -- -- -- 43,761
Accounts receivable from affiliated companies 2,226 -- -- 18 2,208
Unbilled revenues 12,746 -- -- -- 12,746
Materials and supplies, at average cost 1,457 -- -- -- 1,457
Prepayments and other 1,544 -- -- -- 1,544
-------- -------- ------------ -------- --------
62,332 151,402 -- 151,419 62,315
-------- -------- ------------ -------- --------
Deferred Charges:
Regulatory assets 320,222 -- -- -- 320,222
Unamortized debt expense 678 -- -- -- 678
Prepaid pension 54,226 -- -- -- 54,226
Other 2,274 -- -- -- 2,274
-------- -------- ------------ -------- --------
377,400 -- -- -- 377,400
-------- -------- ------------ -------- --------
Total Assets $850,264 $154,593 $ -- $152,195 $852,662
======== ======== ============ ======== ========
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
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2001
(Thousands of Dollars)
Western WMECO WMECO
Massachusetts Funding Receivables
Electric Company LLC Corporation Eliminations Consolidated
---------------- --------- ----------- ------------ ------------
Capitalization:
Common stockholder's equity:
Common stock $ 12,742 $ -- $ -- $ -- $ 12,742
Capital surplus, paid in 82,224 776 -- 776 82,224
Retained earnings 55,422 -- -- -- 55,422
Accumulated other comprehensive income 59 -- -- -- 59
------------ --------- ------------ ------------ ------------
Total common stockholder's equity 150,447 776 -- 776 150,447
Long-term debt 101,170 -- -- -- 101,170
------------ --------- ------------ ------------ ------------
Total capitalization 251,617 776 -- 776 251,617
------------ --------- ------------ ------------ ------------
Rate Reduction Bonds -- 152,317 -- -- 152,317
------------ --------- ------------ ------------ ------------
Obligations Under Capital Leases 87 -- -- -- 87
------------ --------- ------------ ------------ ------------
Current Liabilities:
Notes payable to banks 50,000 -- -- -- 50,000
Notes payable to affiliated companies 160,601 -- -- 151,401 9,200
Obligations under capital leases-current portion 23 -- -- -- 23
Accounts payable 34,970 -- -- -- 34,970
Accounts payable to affiliated companies 2,982 18 -- 18 2,982
Accrued taxes 3,691 -- -- -- 3,691
Accrued interest 1,372 829 -- -- 2,201
Other 9,454 651 -- -- 10,104
------------ --------- ------------ ------------ ------------
263,093 1,498 -- 151,419 113,171
------------ --------- ------------ ------------ ------------
Deferred Credits and Other Long-term Liabilities:
Accumulated deferred income taxes 229,893 -- -- -- 229,893
Accumulated deferred investment tax credits 3,998 -- -- -- 3,998
Deferred contractual obligations 37,357 -- -- -- 37,357
Other 64,219 2 -- -- 64,222
------------ --------- ------------ ------------ ------------
335,467 2 -- -- 335,470
------------ --------- ------------ ------------ ------------
Total Capitalization and Liabilities $ 850,264 $ 154,593 $ -- $ 152,195 $ 852,662
============ ========= ============ ============ ============
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
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Western WMECO WMECO
Massachusetts Funding Receivables
Electric Company LLC Corporation Eliminations Consolidated
---------------- ------- ----------- ------------ ------------
Operating Revenues $ 478,869 $ 6,359 $ -- $ 6,359 $ 478,869
------------ ------- -------- -------- ---------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power 315,903 -- -- -- 315,903
Other 66,458 109 -- 109 66,458
Maintenance 19,635 -- -- -- 19,635
Depreciation 13,818 -- -- -- 13,818
Amortization of regulatory assets 131,876 -- -- -- 131,876
Federal and state income taxes 9,796 -- -- -- 9,796
Taxes other than income taxes 13,065 -- -- -- 13,065
Gain on sale of utility plant (119,775) -- -- -- (119,775)
------------ ------- -------- -------- ---------
Total operating expenses 450,776 109 -- 109 450,776
------------ ------- -------- -------- ---------
Operating Income 28,093 6,250 -- 6,250 28,093
------------ ------- -------- -------- ---------
Other Income:
Equity in earnings of regional nuclear
generating companies 290 -- -- -- 290
Gain related to Millstone sale 22 -- -- -- 22
Other, net (1,362) 33 -- 33 (1,362)
Income taxes 3,236 -- -- -- 3,236
------------ ------- -------- -------- ---------
Other income, net 2,186 33 -- 33 2,186
------------ ------- -------- -------- ---------
Income before interest charges 30,279 6,283 -- 6,283 30,279
------------ ------- -------- -------- ---------
Interest Charges:
Interest on long-term debt 5,325 -- -- -- 5,325
Interest on rate reduction bonds 6,251 6,283 -- 6,283 6,251
Other interest 3,735 -- -- -- 3,735
------------ ------- -------- -------- ---------
Interest charges, net 15,311 6,283 -- 6,283 15,311
------------ ------- -------- -------- ---------
Net Income $ 14,968 $ -- $ -- $ -- $ 14,968
============ ======= ======== ======== =========
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
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Western
Massachusetts WMECO
Electric WMECO Receivables
Company Funding LLC Corporation Eliminations Consolidated
------------- ----------- ----------- ------------ ------------
Balance at beginning of period $ 62,952 $ -- $ (71) $ (71) $ 62,952
Additions:
Net income 14,968 -- -- -- 14,968
---------- ---------- ---------- ---------- ----------
77,920 -- (71) (71) 77,920
---------- ---------- ---------- ---------- ----------
Deductions:
Dividends declared:
Common stock $42.3616 per share 22,000 -- -- -- 22,000
Preferred stock (at required annual rates) 404 -- -- -- 404
Close out of retained earnings due to
dissolving of subsidiary -- -- (71) (71) --
Allocation of benefits-ESOP 94 -- -- -- 94
---------- ---------- ---------- ---------- ----------
Total deductions 22,498 -- (71) (71) 22,498
---------- ---------- ---------- ---------- ----------
Balance at end of period $ 55,422 $ -- $ -- $ -- $ 55,422
========== ========== ========== ========== ==========
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Western
Massachusetts WMECO
Electric WMECO Receivables
Company Funding LLC Corporation Eliminations Consolidated
------------- ----------- ----------- ------------ ------------
Balance at beginning of period $ 94,010 $ -- $ 60 $ 60 $ 94,010
Repurchase of common stock (12,990) -- -- -- (12,990)
Capital contribution from Western
Massachusetts Electric Company -- 776 -- 776 --
Close out of capital surplus, paid in due
to dissolving of subsidiary -- -- (60) (60) --
Capital stock expenses, net 1,204 -- -- -- 1,204
---------- ---------- ---------- ---------- ----------
Balance at end of period $ 82,224 $ 776 $ -- $ 776 $ 82,224
========== ========== ========== ========== ==========
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-28
WESTERN MASSACHUSETTS ELECTRIC COMPANY AND SUBSIDIARY
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Western
Massachusetts WMECO WMECO
Electric FUNDING Receivables
Company LLC Corporation Eliminations Consolidated
------------- --------- ----------- ------------ ------------
Operating Activities:
Income after interest charges $ 14,968 $ -- $ -- $ -- $ 14,968
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 13,818 -- -- -- 13,818
Deferred income taxes and investment tax credits, net 5,281 -- -- -- 5,281
Amortization of recoverable energy costs, net 3,179 -- -- -- 3,179
Amortization of regulatory assets, net 131,876 -- -- -- 131,876
Gain on sale of utility plant (119,775) -- -- -- (119,775)
Allocation of ESOP benefits (94) -- -- -- (94)
Net other uses of cash (1,961) 2 -- -- (1,958)
Changes in working capital:
Receivables and accrued utility revenues 15,105 -- -- 88 15,017
Fuel, materials and supplies 149 -- -- -- 149
Accounts payable 4,043 18 (106) (88) 4,043
Accrued taxes (4,777) -- (3) -- (4,780)
Other working capital (excludes cash) 1,725 1,480 -- -- 3,204
--------- --------- -------- -------- ---------
Net cash flows provided by/(used in) operating activities 63,537 1,500 (109) -- 64,928
--------- --------- -------- -------- ---------
Investing Activities:
Investments in regulated plant:
Electric utility plant (30,921) -- -- -- (30,921)
Nuclear fuel (140) -- -- -- (140)
--------- --------- -------- -------- ---------
Net cash flows used for investments in regulated plant (31,061) -- -- -- (31,061)
Investments in nuclear decommissioning trusts (23,037) -- -- -- (23,037)
Other investment activities, net 3,221 (3,191) -- (787) 817
Net proceeds from the sale of utility plant 175,154 -- -- -- 175,154
Buyout of IPP contracts (80,000) -- -- -- (80,000)
--------- --------- -------- -------- ---------
Net cash flows provided by/(used in) investing activities 44,277 (3,191) -- (787) 41,873
--------- --------- -------- -------- ---------
Financing Activities:
Dissolution of WMECO Receivables Corporation -- -- 11 11 --
Repurchase of common stock (15,000) -- -- -- (15,000)
Issuance of rate reduction bonds -- 155,000 -- -- 155,000
Retirement of rate reduction bonds -- (2,683) -- -- (2,683)
Net decrease in short-term debt (51,400) -- -- -- (51,400)
Intercompany Notes Receivable/Notes Payable 151,401 (151,401) -- -- --
Reacquisitions and retirements of long-term debt (100,000) -- -- -- (100,000)
Reacquisitions and retirements of preferred stock (36,500) -- -- -- (36,500)
Retirement of capital lease obligation (34,200) -- -- -- (34,200)
Capital contribution from parent -- 776 -- 776 --
Cash dividends on preferred stock (404) -- -- -- (404)
Cash dividends on common shares (22,000) -- -- -- (22,000)
--------- --------- -------- -------- ---------
Net cash flows (used in)/provided by financing activities (108,103) 1,692 11 787 (107,187)
--------- --------- -------- -------- ---------
Net (decrease)/increase in cash for the period (289) 1 (98) -- (386)
Cash - beginning of period 887 -- 98 -- 985
--------- --------- -------- -------- ---------
Cash - end of period $ 598 $ 1 $ -- $ -- $ 599
========= ========= ======== ======== =========
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 18,768 $ (829) $ -- $ -- $ 17,939
========= ========= ======== ======== =========
Income taxes $ 6,314 $ -- $ -- $ -- $ 6,314
========= ========= ======== ======== =========
Increase in obligations:
Niantic Bay Fuel Trust and other capital leases $ 411 $ -- $ -- $ -- $ 411
========= ========= ======== ======== =========
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
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F-30
HOLYOKE WATER POWER COMPANY
AND SUBSIDIARY
Consolidating Balance Sheet (a)
Assets
December 31, 2001
(Thousands of Dollars)
Holyoke Holyoke
Water Power and
Power Electric
Company Company Eliminations Consolidated
-------- --------- ------------ ------------
Utility Plant, at cost:
Electric $ 35,281 $ 1,418 $ -- $ 36,699
Less: Accumulated provision for depreciation 31,804 1,055 -- 32,860
-------- -------- -------- --------
3,477 363 -- 3,839
Construction work in progress 1,118 -- -- 1,118
-------- -------- -------- --------
Total net utility plant 4,595 363 -- 4,957
-------- -------- -------- --------
Other Property and Investments:
Investments in subsidiary companies, at equity 750 -- 750 --
Other, at cost 1,859 -- -- 1,859
-------- -------- -------- --------
2,609 -- 750 1,859
-------- -------- -------- --------
Current Assets:
Cash -- 3,130 -- 3,130
Notes Receivable from affiliated companies 3,300 -- -- 3,300
Receivables, net 125 -- -- 125
Accounts receivable from affiliated companies 3,766 4,032 3,675 4,124
Taxes receivable 292 -- 53 239
Fuel, materials, and supplies, at average cost 6,157 -- -- 6,157
Prepayments and other 925 85 12 998
-------- -------- -------- --------
14,565 7,247 3,740 18,073
-------- -------- -------- --------
Deferred Charges:
Regulatory assets 762 -- -- 762
Accumulated deferred income taxes -- 36 36 --
Prepaid pension 2,514 -- -- 2,514
Other 281 -- -- 281
-------- -------- -------- --------
3,557 36 36 3,557
-------- -------- -------- --------
Total Assets $ 25,326 $ 7,646 $ 4,526 $ 28,446
======== ======== ======== ========
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
HOLYOKE WATER POWER COMPANY
AND SUBSIDIARY
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2001
(Thousands of Dollars)
Holyoke Holyoke
Water Power and
Power Electric
Company Company Eliminations Consolidated
-------- --------- ------------ ------------
Capitalization:
Common stockholder's equity:
Common stock $ 2,400 $ 485 $ 485 $ 2,400
Capital surplus, paid in 6,000 -- -- 6,000
Retained earnings (1,233) (304) (304) (1,233)
Accumulated other comprehensive income (5) -- -- (5)
-------- -------- -------- --------
Total common stockholder's equity 7,162 181 181 7,162
Long-term debt:
Advances from parent companies 9,600 424 424 9,600
-------- -------- -------- --------
Total capitalization 16,762 605 605 16,762
-------- -------- -------- --------
Current Liabilities:
Accounts payable 1,620 3,135 -- 4,755
Accounts payable to affiliated companies 1,777 3,683 3,675 1,785
Accrued taxes -- 65 65 --
Accrued interest 12 -- -- 12
Other 25 13 -- 38
-------- -------- -------- --------
3,434 6,896 3,740 6,590
-------- -------- -------- --------
Deferred Credits and Other Long-term Liabilities:
Accumulated deferred investment tax credits 1,005 -- 36 969
Other 4,125 145 145 4,125
-------- -------- -------- --------
5,130 145 181 5,094
-------- -------- -------- --------
Total Capitalization and Liabilities $ 25,326 $ 7,646 $ 4,526 $ 28,446
======== ======== ======== ========
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
HOLYOKE WATER POWER COMPANY
AND SUBSIDIARY
Consolidating Statement of Income (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Holyoke Holyoke
Water Power and
Power Electric
Company Company Eliminations Consolidated
-------- --------- ------------ ------------
Operating Revenues $ 55,137 $ 49,158 $ 49,097 $ 55,197
-------- -------- -------- --------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power 27,894 49,188 49,094 27,988
Other 8,789 152 3 8,938
Maintenance 7,030 -- -- 7,030
Depreciation 2,083 24 -- 2,106
Federal and state income taxes 3,232 (87) -- 3,145
Taxes other than income taxes 504 42 -- 546
-------- -------- -------- --------
Total operating expenses 49,532 49,319 49,097 49,753
-------- -------- -------- --------
Operating Income/(Loss) 5,605 (161) -- 5,444
-------- -------- -------- --------
Other Income/(loss):
Equity in losses of subsidiary (209) -- (209) --
Other, net 405 -- 21 383
Income taxes 571 (27) -- 545
-------- -------- -------- --------
Other income/(loss), net 767 (27) (188) 928
-------- -------- -------- --------
Income/(loss) before interest charges 6,372 (188) (188) 6,372
-------- -------- -------- --------
Interest Charges:
Interest on long-term debt 1,709 -- -- 1,709
Other interest 287 21 21 287
-------- -------- -------- --------
Interest charges, net 1,996 21 21 1,996
-------- -------- -------- --------
Net Income/(Loss) $ 4,376 $ (209) $ (209) $ 4,376
======== ======== ======== ========
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
HOLYOKE WATER POWER COMPANY
AND SUBSIDIARY
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Holyoke Holyoke
Water Power and
Power Electric
Company Company Eliminations Consolidated
-------- --------- ------------ ------------
Balance at beginning of period $ (5,607) $ (95) $ (95) $ (5,607)
Additions:
Net Income/(Loss) 4,376 (209) (209) 4,376
Deductions:
Allocation of benefits-ESOP 2 -- -- 2
-------- -------- -------- --------
Balance at end of period $ (1,233) $ (304) $ (304) $ (1,233)
======== ======== ======== ========
HOLYOKE WATER POWER COMPANY
AND SUBSIDIARY
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Holyoke Holyoke
Water Power and
Power Electric
Company Company Eliminations Consolidated
-------- --------- ------------ ------------
Balance at beginning of period $ 6,000 $ -- $ -- $ 6,000
-------- -------- -------- --------
Balance at end of period $ 6,000 $ -- $ -- $ 6,000
======== ======== ======== ========
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-34
HOLYOKE WATER POWER COMPANY AND SUBSIDIARY
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Holyoke Holyoke
Water Power and
Power Electric
Company Company Eliminations Consolidated
-------- --------- ------------ ------------
Operating Activities:
Income/(loss) before extraordinary loss $ 4,376 $ (209) $ (209) $ 4,376
Adjustments to reconcile to net cash
(used in)/provided by operating activities:
Depreciation 2,083 24 -- 2,106
Deferred income taxes, net 644 (1) -- 644
Amortization of regulatory assets, net -- -- -- --
Loss on sale of assets 135 -- -- 135
Allocation of ESOP benefits (2) -- -- (2)
Net other (uses)/sources of cash (8,135) 19 20 (8,135)
Changes in working capital:
Receivables, net 1,679 133 132 1,678
Fuel, materials and supplies (1,394) -- -- (1,394)
Accounts payable (1,190) 1,351 (132) 294
Accrued taxes (756) 36 65 (785)
Other working capital (excludes cash) (446) (88) (65) (469)
-------- -------- -------- --------
Net cash flows (used in)/provided by operating activities (3,006) 1,265 (189) (1,552)
-------- -------- -------- --------
Investing Activities:
Investments in competitive energy assets (550) -- -- (550)
Investment in NU system Money Pool 12,900 -- -- 12,900
Other investment activities, net 1,806 -- 189 1,617
Net proceeds from the sale of utility plant 17,550 -- -- 17,550
-------- -------- -------- --------
Net cash flows provided by investing activities 31,706 -- 189 31,517
-------- -------- -------- --------
Financing Activities:
Reacquisitions and retirements of long-term debt (38,300) -- -- (38,300)
Advances from/(repayment to) parent 9,600 -- -- 9,600
-------- -------- -------- --------
Net cash flows used in financing activities (28,700) -- -- (28,700)
-------- -------- -------- --------
Net increase in cash for the period -- 1,265 -- 1,265
Cash - beginning of period -- 1,865 -- 1,865
-------- -------- -------- --------
Cash - end of period $ -- $ 3,130 $ -- $ 3,130
======== ======== ======== ========
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 2,546 $ 21 $ 21 $ 2,546
======== ======== ======== ========
Income taxes $ 2,863 $ (87) $ -- $ 2,776
======== ======== ======== ========
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
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F-36
YANKEE ENERGY SYSTEM, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2001
(Thousands of Dollars)
Yankee
Energy Yankee Gas NorConn
System, Services Properties Housatonic
Inc. Company Inc. Corporation
---------- ---------- ---------- -----------
Utility Plant, at cost:
Gas $ -- $ 634,884 $ -- $ --
Less: Accumulated provision for depreciation -- 266,655 -- --
---------- ---------- ---------- ----------
-- 368,229 -- --
Construction work in progress -- 37,726 -- --
---------- ---------- ---------- ----------
Total net utility plant -- 405,955 -- --
---------- ---------- ---------- ----------
Other Property and Investments:
Investments in subsidiary companies, at equity 512,487 -- -- --
Other, at cost -- 1,794 1,877 --
---------- ---------- ---------- ----------
512,487 1,794 1,877 --
---------- ---------- ---------- ----------
Current Assets:
Cash 3 130 25 --
Notes receivable from affiliated companies 3,670 -- 346 --
Receivables, net -- 39,495 -- --
Accounts receivable from affiliated companies -- 9,529 25 --
Taxes receivable -- -- 52 95
Unbilled revenues -- 42,494 -- --
Fuel, materials, and supplies, at average cost -- 3,880 -- --
Prepayments and other 189 20,046 -- --
---------- ---------- ---------- ----------
3,862 115,574 448 95
---------- ---------- ---------- ----------
Deferred Charges:
Regulatory assets -- 40,834 -- --
Accumulated deferred income taxes 3,482 -- -- --
Unamortized debt expense -- 1,134 1 --
Goodwill and other purchased intangible assets -- 287,591 -- --
Prepaid pension -- 42,757 -- --
Other 395 371 1 --
---------- ---------- ---------- ----------
3,877 372,687 2 --
---------- ---------- ---------- ----------
Total Assets $ 520,226 $ 896,010 $ 2,327 $ 95
========== ========== ========== ==========
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
YANKEE ENERGY SYSTEM, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2001
(Thousands of Dollars)
Yankee Yankee
Energy Energy R.M.
Financial Services Services
Services Company Company Eliminations Consolidated
---------- ---------- ---------- ------------ ------------
Utility Plant, at cost:
Gas $ -- $ -- $ -- $ -- $ 634,884
Less: Accumulated provision for depreciation -- -- -- -- 266,655
---------- ---------- ---------- ---------- ----------
-- -- -- -- 368,229
Construction work in progress -- -- -- -- 37,726
---------- ---------- ---------- ---------- ----------
Total net utility plant -- -- -- -- 405,955
---------- ---------- ---------- ---------- ----------
Other Property and Investments:
Investments in subsidiary companies, at equity -- -- -- 512,487 --
Other, at cost 59 443 13,160 -- 17,334
---------- ---------- ---------- ---------- ----------
59 443 13,160 512,487 17,334
---------- ---------- ---------- ---------- ----------
Current Assets:
Cash 83 151 -- -- 393
Notes receivable from affiliated companies -- -- -- 4,015 --
Receivables, net 4,462 4,700 -- -- 48,657
Accounts receivable from affiliated companies 1 2,280 173 11,474 534
Taxes receivable -- 402 -- 549 --
Unbilled revenues -- -- -- -- 42,494
Fuel, materials, and supplies, at average cost -- -- -- -- 3,880
Prepayments and other 10 -- -- 2 20,241
---------- ---------- ---------- ---------- ----------
4,556 7,533 173 16,040 116,199
---------- ---------- ---------- ---------- ----------
Deferred Charges:
Regulatory assets -- -- -- -- 40,834
Accumulated deferred income taxes 74 1,399 -- 4,954 --
Unamortized debt expense -- -- -- -- 1,135
Goodwill and other purchased intangible assets -- 405 -- -- 287,996
Prepaid pension -- -- -- -- 42,757
Other 44 -- -- 94 717
---------- ---------- ---------- ---------- ----------
118 1,804 -- 5,048 373,439
---------- ---------- ---------- ---------- ----------
Total Assets $ 4,733 $ 9,780 $ 13,333 $ 533,575 $ 912,927
========== ========== ========== ========== ==========
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
YANKEE ENERGY SYSTEM, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2001
(Thousands of Dollars)
Yankee
Energy Yankee Gas NorConn
System, Services Properties Housatonic
Inc. Company Inc. Corporation
---------- ---------- ---------- -----------
Capitalization:
Common stockholder's equity:
Common stock $ -- $ 5 $ 1 $ 10
Capital surplus, paid in 484,888 466,048 9 2
Retained earnings 25,048 27,103 317 (638)
Accumulated other comprehensive loss (1,363) (1,363) -- --
---------- ---------- ---------- ----------
Total common stockholder's equity 508,573 491,793 327 (626)
Long-term debt -- 151,508 1,400 --
---------- ---------- ---------- ----------
Total capitalization 508,573 643,301 1,727 (626)
---------- ---------- ---------- ----------
Current Liabilities:
Notes payable to banks -- 50,000 -- --
Notes payable to affiliated companies -- 2,500 -- --
Long-term debt - current portion -- 950 100 --
Accounts payable -- 24,958 -- --
Accounts payable to affiliated companies 11,338 747 152 721
Accrued taxes 315 8,038 -- --
Accrued interest -- 3,507 8 --
Other -- 7,132 -- --
---------- ---------- ---------- ----------
11,653 97,832 260 721
---------- ---------- ---------- ----------
Deferred Credits and Other Long-term Liabilities:
Accumulated deferred income taxes -- 71,950 340 --
Accumulated deferred investment tax credits -- 7,099 -- --
Other -- 75,828 -- --
---------- ---------- ---------- ----------
-- 154,877 340 --
---------- ---------- ---------- ----------
Total Capitalization and Liabilities $ 520,226 $ 896,010 $ 2,327 $ 95
========== ========== ========== ==========
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
YANKEE ENERGY SYSTEM, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2001
(Thousands of Dollars)
Yankee Yankee
Energy Energy R.M.
Financial Services Services
Services Company Company Eliminations Consolidated
---------- ---------- ---------- ------------ ------------
Capitalization:
Common stockholder's equity:
Common stock $ 1 $ 1 $ 1 $ 19 $ --
Capital surplus, paid in 1,241 7,881 13,798 488,977 484,888
Retained earnings 189 (1,651) (466) 24,854 25,048
Accumulated other comprehensive loss -- -- -- (1,363) (1,363)
---------- ---------- ---------- ---------- ----------
Total common stockholder's equity 1,431 6,231 13,333 512,487 508,573
Long-term debt -- -- -- -- 152,908
---------- ---------- ---------- ---------- ----------
Total capitalization 1,431 6,231 13,333 512,487 661,481
---------- ---------- ---------- ---------- ----------
Current Liabilities:
Notes payable to banks -- -- -- -- 50,000
Notes payable to affiliated companies 3,200 3,515 -- 4,015 5,200
Long-term debt - current portion -- -- -- -- 1,050
Accounts payable 46 -- -- -- 25,004
Accounts payable to affiliated companies 36 -- -- 11,474 1,518
Accrued taxes 20 -- -- 549 7,825
Accrued interest -- -- -- 2 3,514
Other -- 34 -- -- 7,166
---------- ---------- ---------- ---------- ----------
3,302 3,549 -- 16,040 101,277
---------- ---------- ---------- ---------- ----------
Deferred Credits and Other Long-term Liabilities:
Accumulated deferred income taxes -- -- -- 4,954 67,336
Accumulated deferred investment tax credits -- -- -- -- 7,099
Other -- -- -- 94 75,734
---------- ---------- ---------- ---------- ----------
-- -- -- 5,048 150,169
---------- ---------- ---------- ---------- ----------
Total Capitalization and Liabilities $ 4,733 $ 9,780 $ 13,333 $ 533,575 $ 912,927
========== ========== ========== ========== ==========
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-40
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Yankee
Energy Yankee Gas NorConn
System, Services Properties Housatonic
Inc. Company Inc. Corporation
---------- ---------- ---------- -----------
Operating Revenues $ 2 $ 378,033 $ 297 $ --
---------- ---------- ---------- ----------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power -- 218,585 -- --
Other 169 53,271 88 1,054
Maintenance -- 7,969 -- --
Depreciation -- 25,752 89 --
Amortization of regulatory assets -- 7,541 -- --
Federal and state income taxes -- 11,900 161 (421)
Taxes other than income taxes 5 14,748 -- --
---------- ---------- ---------- ----------
Total operating expenses 174 339,766 338 633
---------- ---------- ---------- ----------
Operating (Loss)/Income (172) 38,267 (41) (633)
---------- ---------- ---------- ----------
Other Income/(Loss):
Equity in earnings of subsidiaries 24,600 -- -- --
Other, net 35 4,143 24 6
Income taxes 917 (2,411) 247 (8)
---------- ---------- ---------- ----------
Other income/(loss), net 25,552 1,732 271 (2)
---------- ---------- ---------- ----------
Income/(loss) before interest charges 25,380 39,999 230 (635)
---------- ---------- ---------- ----------
Interest Charges:
Interest on long-term debt -- 12,759 97 --
Other interest (895) 1,239 23 18
---------- ---------- ---------- ----------
Interest charges, net (895) 13,998 120 18
---------- ---------- ---------- ----------
Income/(loss) before cumulative effect of
accounting change, net of tax benefit 26,275 26,001 110 (653)
Cumulative effect of accounting change,
net of tax benefit (447) -- -- --
---------- ---------- ---------- ----------
Net Income/(Loss) $ 25,828 $ 26,001 $ 110 $ (653)
========== ========== ========== ==========
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 Statement of Income (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Yankee Yankee
Energy, Inc. Energy R.M.
Financial Services Services
Services Company Inc. Eliminations Consolidated
------------ ---------- ---------- ------------ ------------
Operating Revenues $ 99 $ (90) $ 3,279 $ 1,398 $ 380,223
---------- ---------- ---------- ---------- ----------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power -- -- -- -- 218,585
Other 128 989 2,976 1,398 57,277
Maintenance -- -- -- -- 7,969
Depreciation 96 151 490 -- 26,578
Amortization of regulatory assets -- 22 198 -- 7,761
Federal and state income taxes -- (448) -- -- 11,191
Taxes other than income taxes -- -- 32 -- 14,787
---------- ---------- ---------- ---------- ----------
Total operating expenses 224 714 3,696 1,398 344,148
---------- ---------- ---------- ---------- ----------
Operating (Loss)/Income (125) (804) (417) -- 36,075
---------- ---------- ---------- ---------- ----------
Other Income/(Loss):
Equity in earnings of subsidiaries -- -- -- 24,600 --
Other, net 336 (1) (141) 208 4,193
Income taxes 13 740 123 -- (378)
---------- ---------- ---------- ---------- ----------
Other income/(loss), net 349 739 (18) 24,808 3,815
---------- ---------- ---------- ---------- ----------
Income/(loss) before interest charges 224 (65) (435) 24,808 39,890
---------- ---------- ---------- ---------- ----------
Interest Charges:
Interest on long-term debt -- -- -- -- 12,855
Other interest 93 399 90 208 760
---------- ---------- ---------- ---------- ----------
Interest charges, net 93 399 90 208 13,615
---------- ---------- ---------- ---------- ----------
Income/(loss) before cumulative effect of
accounting change, net of tax benefit 131 (464) (525) 24,600 26,275
Cumulative effect of accounting change,
net of tax benefit -- -- -- -- (447)
---------- ---------- ---------- ---------- ----------
Net Income/(Loss) $ 131 $ (464) $ (525) $ 24,600 $ 25,828
========== ========== ========== ========== ==========
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-42
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Yankee
Energy Yankee Gas NorConn
System, Services Properties Housatonic
Inc. Company Inc. Corporation
---------- ---------- ---------- -----------
Balance at beginning of period $ (733) $ 1,149 $ 207 $ 15
Additions:
Net Income/(Loss) 25,828 26,001 110 (653)
---------- ---------- ---------- ----------
25,095 27,150 317 (638)
---------- ---------- ---------- ----------
Deductions:
Allocation of benefits-ESOP 47 47 -- --
---------- ---------- ---------- ----------
Total deductions 47 47 -- --
---------- ---------- ---------- ----------
Balance at end of period $ 25,048 $ 27,103 $ 317 $ (638)
========== ========== ========== ==========
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Yankee
Energy Yankee Gas NorConn
System, Services Properties Housatonic
Inc. Company Inc. Corporation
---------- ---------- ---------- -----------
Balance at beginning of period $ 484,888 $ 466,048 $ 9 $ 2
Capital contribution from Yankee Energy
System, Inc. -- -- -- --
---------- ---------- ---------- ----------
Balance at end of period $ 484,888 $ 466,048 $ 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-43
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Yankee Yankee
Energy, Inc. Energy R.M.
Financial Services Services
Services Company Inc. Eliminations Consolidated
------------ ---------- ---------- ------------ ------------
Balance at beginning of period $ 58 $ (1,187) $ 59 $ 301 $ (733)
Additions:
Net Income/(Loss) 131 (464) (525) 24,600 25,828
---------- ---------- ---------- ---------- ----------
189 (1,651) (466) 24,901 25,095
---------- ---------- ---------- ---------- ----------
Deductions:
Allocation of benefits-ESOP -- -- -- 47 47
---------- ---------- ---------- ---------- ----------
Total deductions -- -- -- 47 47
---------- ---------- ---------- ---------- ----------
Balance at end of period $ 189 $ (1,651) $ (466) $ 24,854 $ 25,048
========== ========== ========== ========== ==========
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Yankee Yankee
Energy, Inc. Energy R.M.
Financial Services Services
Services Company Inc. Eliminations Consolidated
------------ ---------- ---------- ------------ ------------
Balance at beginning of period $ 1,241 $ 7,881 $ 9,298 $ 484,477 $ 484,888
Capital contribution from Yankee Energy
System, Inc. -- -- 4,500 4,500 --
---------- ---------- ---------- ---------- ----------
Balance at end of period $ 1,241 $ 7,881 $ 13,798 $ 488,977 $ 484,888
========== ========== ========== ========== ==========
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-44
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Yankee
Energy Yankee Gas NorConn
System, Services Properties Housatonic
Inc. Company Inc. Corporation
---------- ---------- ---------- -----------
Operating Activities:
Income/(loss) after interest charges $ 26,275 $ 26,001 $ 110 $ (653)
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation -- 25,752 89 --
Deferred income taxes and investment tax credits, net (3,185) (1,196) 483 --
Amortization of regulatory assets -- 7,541 -- --
Accumulative effect of accounting change (447) -- -- --
Allocation of ESOP benefits (47) (47) -- --
Net other (uses)/sources of cash (1,291) 1,225 (88) 257
Changes in working capital:
Accounts receivable 1,110 10,171 156 130
Fuel, materials and supplies -- (686) -- --
Accounts payable 2,312 (20,784) 110 711
Accrued taxes 315 (11,584) (369) --
Other working capital (excludes cash) 508 6,234 (52) (96)
---------- ---------- ---------- ----------
Net cash flows provided by/(used in) operating activities 25,550 42,627 439 349
---------- ---------- ---------- ----------
Investing Activities:
Investments in regulated plant -- (47,771) -- --
Investment in NU system Money Pool 1,610 (500) (403) (349)
Other investments (27,692) (1,500) 89 --
---------- ---------- ---------- ----------
Net cash flows (used in)/provided by investing activities (26,082) (49,771) (314) (349)
---------- ---------- ---------- ----------
Financing Activities:
Net increase in short-term debt -- 3,400 -- --
Capital contribution from parent -- -- -- --
Reacquisitions and retirements of long-term debt -- (950) (100) --
---------- ---------- ---------- ----------
Net cash flows provided by/(used in) financing activities -- 2,450 (100) --
---------- ---------- ---------- ----------
Net (decrease)/increase in cash for the period (532) (4,694) 25 --
Cash - beginning of period 535 4,824 -- --
---------- ---------- ---------- ----------
Cash - end of period $ 3 $ 130 $ 25 $ --
========== ========== ========== ==========
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 37 $ 14,121 $ 119 $ 19
========== ========== ========== ==========
Income taxes $ 2,621 $ 24,937 $ (300) $ (400)
========== ========== ========== ==========
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 Cash Flows (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Yankee
Energy Yankee
Financial Energy R.M.
Services Services Services
Company Company Inc. Eliminations Consolidated
---------- ---------- ---------- ------------ ------------
Operating Activities:
Income/(loss) after interest charges $ 131 $ (464) $ (525) $ 24,600 $ 26,275
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 96 151 490 -- 26,578
Deferred income taxes and investment tax credits, net (44) -- -- -- (3,943)
Amortization of regulatory assets -- 22 198 -- 7,761
Accumulative effect of accounting change -- -- -- (447)
Allocation of ESOP benefits -- -- -- (47) (47)
Net other (uses)/sources of cash (140) 13,831 6,943 (1,363) 22,102
Changes in working capital:
Accounts receivable (1,415) (6,554) 772 (778) 5,146
Fuel, materials and supplies -- 210 -- -- (476)
Accounts payable (4) (480) (1,238) 778 (20,153)
Accrued taxes (37) -- (708) (1,821) (10,562)
Other working capital (excludes cash) (3) 1,148 (78) 1,821 5,844
---------- ---------- ---------- ---------- ----------
Net cash flows provided by/(used in) operating activities (1,416) 7,864 5,854 23,190 58,078
---------- ---------- ---------- ---------- ----------
Investing Activities:
Investments in regulated plant -- -- -- -- (47,771)
Investment in NU system Money Pool 1,418 (12,119) (2,458) 1 (12,800)
Other investments 73 4,406 (8,987) (27,691) (5,923)
---------- ---------- ---------- ---------- ----------
Net cash flows (used in)/provided by investing activities 1,491 (7,713) (11,445) (27,690) (66,494)
---------- ---------- ---------- ---------- ----------
Financing Activities:
Net increase in short-term debt -- -- -- -- 3,400
Capital contribution from parent -- -- 4,500 4,500 --
Reacquisitions and retirements of long-term debt -- -- -- -- (1,050)
---------- ---------- ---------- ---------- ----------
Net cash flows provided by/(used in) financing activities -- -- 4,500 4,500 2,350
---------- ---------- ---------- ---------- ----------
Net (decrease)/increase in cash for the period 75 151 (1,091) -- (6,066)
Cash - beginning of period 8 -- 1,091 -- 6,459
---------- ---------- ---------- ---------- ----------
Cash - end of period $ 83 $ 151 $ -- $ -- $ 393
========== ========== ========== ========== ==========
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 93 $ 399 $ 91 $ (208) $ 14,671
========== ========== ========== ========== ==========
Income taxes $ 50 $ (1,173) $ 160 $ -- $ 25,895
========== ========== ========== ========== ==========
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-46
CHARTER OAK ENERGY INCORPORATED
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2001
(Thousands of Dollars)
Charter COE COE COE
Oak Development Argentina II Ave Fenix
Energy, Inc. Corporation Corp Corporation Eliminations Consolidated
------------ ----------- ------------ ----------- ------------ ------------
Utility Plant, at cost:
Electric $ 40 $ 11 $ -- $ -- $ -- $ 52
Less: Accumulated provision for depreciation 40 11 -- -- -- 52
-------- -------- -------- -------- -------- --------
Total net utility plant -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Other Property and Investments:
Investments in subsidiary companies, at equity 13,118 -- -- -- 13,118 --
-------- -------- -------- -------- -------- --------
Current Assets:
Cash 161 37 29 52 -- 279
Receivables, net -- 215 -- -- 215 --
Accounts receivable from affiliated companies -- 1,168 -- 23,825 1,168 23,825
Taxes receivable -- -- -- 38 38 --
-------- -------- -------- -------- -------- --------
161 1,420 29 23,915 1,421 24,104
-------- -------- -------- -------- -------- --------
Deferred Charges:
Accumulated deferred income taxes 80 -- -- -- -- 80
-------- -------- -------- -------- -------- --------
Total Assets $ 13,359 $ 1,420 $ 29 $ 23,915 $ 14,539 $ 24,184
======== ======== ======== ======== ======== ========
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
CHARTER OAK ENERGY INCORPORATED
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2001
(Thousands of Dollars)
Charter COE COE COE
Oak Development Argentina II Ave Fenix
Energy, Inc. Corporation Corp Corporation Eliminations Consolidated
------------ ----------- ------------ ----------- ------------ ------------
Capitalization:
Common stockholder's equity:
Common stock $ -- $ -- $ -- $ -- $ -- $ --
Capital surplus, paid in 75,944 15,873 1,571 51,884 69,327 75,944
Retained earnings (64,147) (14,786) (1,542) (39,881) (56,209) (64,147)
-------- -------- -------- -------- -------- --------
Total common stockholder's equity 11,797 1,087 29 12,003 13,118 11,797
-------- -------- -------- -------- -------- --------
Total capitalization 11,797 1,087 29 12,003 13,118 11,797
-------- -------- -------- -------- -------- --------
Current Liabilities:
Accounts payable 308 -- -- -- 215 93
Accounts payable to affiliated companies 1,168 -- -- 11,912 1,168 11,913
Accrued taxes 86 333 -- -- 38 381
-------- -------- -------- -------- -------- --------
1,562 333 -- 11,912 1,421 12,387
-------- -------- -------- -------- -------- --------
Total Capitalization and Liabilities $ 13,359 $ 1,420 $ 29 $ 23,915 $ 14,539 $ 24,184
======== ======== ======== ======== ======== ========
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-48
CHARTER OAK ENERGY, INC.
AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2001
(Thousands of Dollars)
COE COE COE
Charter Oak Development Argentina II Ave Fenix
Energy, Inc. Corporation Corp. Corporation Eliminations Consolidated
------------ ----------- ------------ ----------- ------------ ------------
Operating Revenues $ -- $ -- $ -- $ -- $ -- $ --
-------- -------- -------- -------- -------- --------
Operating Expenses:
Operation 20 (179) -- -- -- (158)
Federal and state income taxes 1 (309) -- -- -- (309)
-------- -------- -------- -------- -------- --------
Total operating expenses 21 (488) -- -- -- (467)
-------- -------- -------- -------- -------- --------
Operating (Loss)/Income (21) 488 -- -- -- 467
-------- -------- -------- -------- -------- --------
Other Income:
Equity in earnings of subsidiaries 946 -- -- -- 946 --
Other, net 6 485 -- 44 -- 535
Income taxes -- -- -- (71) -- (71)
-------- -------- -------- -------- -------- --------
Other income/(loss), net 952 485 -- (27) 946 464
-------- -------- -------- -------- -------- --------
Net Income/(Loss) $ 931 $ 973 $ -- $ (27) $ 946 $ 931
======== ======== ======== ======== ======== ========
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
CHARTER OAK ENERGY, INC.
AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2001
(Thousands of Dollars)
COE COE COE
Charter Oak Development Argentina II Ave Fenix
Energy, Inc. Corporation Corp Corporation Eliminations Consolidated
------------ ----------- ------------ ----------- ------------ ------------
Balance at beginning of period $(65,078) $(15,759) $ (1,542) $(39,854) $(57,155) $(65,078)
Additions:
Net Income/(Loss) 931 973 (0) (27) 946 931
-------- -------- -------- -------- -------- --------
Balance at end of period $(64,147) $(14,786) $ (1,542) $(39,881) $(56,209) $(64,147)
======== ======== ======== ======== ======== ========
CHARTER OAK ENERGY, INC.
AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2001
(Thousands of Dollars)
COE COE COE
Charter Oak Development Argentina II Ave Fenix
Energy, Inc. Corporation Corp Corporation Eliminations Consolidated
------------ ----------- ------------ ----------- ------------ ------------
Balance at beginning of period $ 83,944 $ 17,373 $ 1,571 $ 55,884 $ 74,827 $ 83,944
Dividends declared on common shares:
$15,000.00 per share -- (1,500) -- -- (1,500) --
$25,000.00 per share (2,500) -- -- -- -- (2,500)
$40,000.00 per share -- -- -- (4,000) (4,000) --
$55,000.00 per share (5,500) -- -- -- -- (5,500)
-------- -------- -------- -------- -------- --------
Balance at end of period $ 75,944 $ 15,873 $ 1,571 $ 51,884 $ 69,327 $ 75,944
======== ======== ======== ======== ======== ========
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-50
CHARTER OAK ENERGY AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Charter Oak COE COE Ave
Charter Oak Development Argentina II Fenix
Energy, Inc. Corporation Corp. Corp. Eliminations Consolidated
------------ ----------- ------------ ----------- ------------ ------------
Operating Activities:
Income/(loss) after interest charges $ 931 $ 973 $ -- $ (27) $ 946 $ 931
Adjustments to reconcile to net cash
provided by operating activities:
Deferred income taxes -- -- -- 2,206 -- 2,206
Net other (uses)/sources of cash (200) -- -- 11,912 -- 11,711
Changes in working capital:
Accounts receivable 2,500 -- -- (23,825) 2,500 (23,825)
Accounts payable (6) -- -- 9,411 (2,500) 11,907
Accrued taxes 86 317 -- -- 38 365
Other working capital (excludes cash) 34 -- -- 1,891 (38) 1,963
-------- -------- -------- -------- -------- --------
Net cash flows provided by operating activities 3,345 1,290 -- 1,568 946 5,258
-------- -------- -------- -------- -------- --------
Investing Activities:
Other investments 4,554 -- -- -- 4,554 --
-------- -------- -------- -------- -------- --------
Net cash flows provided by investing activities 4,554 -- -- -- 4,554 --
-------- -------- -------- -------- -------- --------
Financing Activities:
Cash dividends on common shares (8,000) (1,500) -- (4,000) (5,500) (8,000)
-------- -------- -------- -------- -------- --------
Net cash flows used in financing activities (8,000) (1,500) -- (4,000) (5,500) (8,000)
-------- -------- -------- -------- -------- --------
Net decrease in cash for the period (101) (210) -- (2,432) -- (2,742)
Cash - beginning of period 262 247 29 2,484 -- 3,021
-------- -------- -------- -------- -------- --------
Cash - end of period $ 161 $ 37 $ 29 $ 52 $ -- $ 279
======== ======== ======== ======== ======== ========
Supplemental Cash Flow Information:
Cash refunded during the year for:
Interest, net of amounts capitalized $ -- $ -- $ -- $ -- $ -- $ --
======== ======== ======== ======== ======== ========
Income taxes $ (120) $ 257 $ -- $ (4,025) $ -- $ (3,888)
======== ======== ======== ======== ======== ========
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-51
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F-52
SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2001
(Thousands of Dollars)
HEC Energy
Select Energy Select Energy Consulting Reeds Ferry
Services, Contracting, Canada, Inc. Supply Co.,
Inc. Inc. (b) Inc.
------------- ------------- ------------ -----------
Utility Plant, at cost:
Other $ 5,974 $ 18,575 $ -- $ 295
Less: Accumulated provision for
depreciation 4,209 4,570 -- 48
-------- -------- -------- --------
Total net utility plant 1,765 14,005 -- 247
-------- -------- -------- --------
Other Property and Investments:
Investments in subsidiary companies,
at equity 19,639 -- -- --
Other, at cost 6 -- -- --
-------- -------- -------- --------
19,645 -- -- --
-------- -------- -------- --------
Current Assets:
Cash 415 215 -- 5
Receivables, net 5,617 15,307 -- 127
Accounts receivable from
affiliated companies 11,228 830 -- --
Taxes receivable 628 -- -- --
Other material and supplies,
at average cost -- 267 -- --
Prepayments and other 309 421 -- --
-------- -------- -------- --------
18,197 17,040 -- 132
-------- -------- -------- --------
Deferred Charges:
Goodwill -- 5,943 -- --
Other 20,743 -- -- --
-------- -------- -------- --------
20,743 5,943 -- --
-------- -------- -------- --------
Total Assets $ 60,350 $ 36,988 $ -- $ 379
======== ======== ======== ========
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) HEC Energy Consulting Canada, Inc. was dissolved on December 31, 2001. The
business was transferred to Select Energy Services, Inc.
F-53
SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2001
(Thousands of Dollars)
HEC/Tobyhanna HEC/CJTS
Energy Energy
Project, Inc. Center LLC Eliminations Consolidated
------------- ---------- ------------ ------------
Utility Plant, at cost:
Other $ 714 $ -- $ 714 $ 24,844
Less: Accumulated provision for
depreciation 73 -- 73 8,827
-------- -------- -------- --------
Total net utility plant 641 -- 641 16,017
-------- -------- -------- --------
Other Property and Investments:
Investments in subsidiary companies,
at equity -- -- 19,639 --
Other, at cost -- -- -- 6
-------- -------- -------- --------
-- -- 19,639 6
-------- -------- -------- --------
Current Assets:
Cash 2,525 1 -- 3,162
Receivables, net 1,272 -- 144 22,179
Accounts receivable from
affiliated companies -- -- 11,964 94
Taxes receivable -- -- 628 --
Other material and supplies,
at average cost -- -- -- 267
Prepayments and other -- -- -- 731
-------- -------- -------- --------
3,797 1 12,736 26,433
-------- -------- -------- --------
Deferred Charges:
Goodwill -- -- -- 5,943
Other 26,265 -- 1,898 45,109
-------- -------- -------- --------
26,265 -- 1,898 51,052
-------- -------- -------- --------
Total Assets $ 30,703 $ 1 $ 34,914 $ 93,508
======== ======== ======== ========
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) HEC Energy Consulting Canada, Inc. was dissolved on December 31, 2001. The
business was transferred to Select Energy Services, Inc.
F-54
SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2001
(Thousands of Dollars)
HEC Energy
Select Energy Select Energy Consulting Reeds Ferry
Services, Contracting, Canada, Inc. Supply Co.,
Inc. Inc. (b) Inc.
------------- ------------- ------------ -----------
Capitalization:
Common stockholder's equity:
Common stock $ -- $ -- $ -- $ 4
Capital surplus, paid in 24,900 14,910 -- 3
Retained earnings 2,931 754 -- (49)
-------- -------- -------- --------
Total common stockholder's equity 27,831 15,664 -- (42)
Long-term debt -- -- -- --
-------- -------- -------- --------
Total capitalization 27,831 15,664 -- (42)
-------- -------- -------- --------
Current Liabilities:
Notes payable to affiliated company 14,500 3,790 -- --
Accounts payable 3,560 4,576 -- 126
Accounts payable to affiliated
companies 1,035 7,454 -- 295
Accrued taxes -- 926 -- --
Accrued interest -- -- -- --
Other 13,405 1,780 -- --
-------- -------- -------- --------
32,500 18,526 -- 421
-------- -------- -------- --------
Deferred Credits and Other
Long-term Liabilities:
Accumulated deferred income taxes 19 260 -- --
Other -- 2,538 -- --
-------- -------- -------- --------
19 2,798 -- --
-------- -------- -------- --------
Total Capitalization and Liabilities $ 60,350 $ 36,988 $ -- $ 379
======== ======== ======== ========
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) HEC Energy Consulting Canada, Inc. was dissolved on December 31, 2001. The
business was transferred to Select Energy Services, Inc.
F-55
SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2001
(Thousands of Dollars)
HEC/Tobyhanna HEC/CJTS
Energy Energy
Project, Inc. Center LLC Eliminations Consolidated
------------- ---------- ------------ ------------
Capitalization:
Common stockholder's equity:
Common stock $ -- $ -- $ 4 $ --
Capital surplus, paid in -- 10 14,923 24,900
Retained earnings 226 (9) 922 2,931
-------- -------- -------- --------
Total common stockholder's equity 226 1 15,849 27,831
Long-term debt 25,979 -- -- 25,979
-------- -------- -------- --------
Total capitalization 26,205 1 15,849 53,810
-------- -------- -------- --------
Current Liabilities:
Notes payable to affiliated company -- -- 3,790 14,500
Accounts payable -- -- 127 8,136
Accounts payable to affiliated
companies 3,403 -- 11,982 205
Accrued taxes -- -- 628 298
Accrued interest 744 -- -- 744
Other 351 -- -- 15,535
-------- -------- -------- --------
4,498 -- 16,527 39,418
-------- -------- -------- --------
Deferred Credits and Other
Long-term Liabilities:
Accumulated deferred income taxes -- -- -- 280
Other -- -- 2,538 --
-------- -------- -------- --------
-- -- 2,538 280
-------- -------- -------- --------
Total Capitalization and Liabilities $ 30,703 $ 1 $ 34,914 $ 93,508
======== ======== ======== ========
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) HEC Energy Consulting Canada, Inc. was dissolved on December 31, 2001. The
business was transferred to Select Energy Services, Inc.
F-56
SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2001
(Thousands of Dollars)
HEC Energy
Select Select Consulting Reeds
Energy Energy Canada, Ferry
Services, Contracting, Inc. Supply
Inc. Inc. (b) Co., Inc.
-------- ------------ ---------- ---------
Operating Revenues $ 49,563 $ 56,511 $ -- $ 961
-------- -------- -------- --------
Operating Expenses:
Operation 47,390 51,568 3 962
Maintenance 38 437 -- --
Depreciation 234 1,571 -- 20
Amortization of regulatory assets -- 76 -- --
Federal and state income taxes 718 833 -- --
Taxes other than income taxes 504 450 -- --
-------- -------- -------- --------
Total operating expenses 48,884 54,935 3 982
-------- -------- -------- --------
Operating Income/(Loss) 679 1,576 (3) (21)
-------- -------- -------- --------
Other Income
Equity in earnings of subsidiaries 928 -- -- --
Other, net 2,001 22 -- --
-------- -------- -------- --------
Other income, net 2,929 22 -- --
-------- -------- -------- --------
Income/(loss)
before interest charges 3,608 1,598 (3) (21)
-------- -------- -------- --------
Interest Charges 1,219 680 -- --
-------- -------- -------- --------
Net Income/(Loss) $ 2,389 $ 918 $ (3) $ (21)
======== ======== ======== ========
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) HEC Energy Consulting Canada, Inc. was dissolved on December 31, 2001. The
business was transferred to Select Energy Services, Inc.
F-57
SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2001
(Thousands of Dollars)
HEC/ HEC/
Tobyhanna CJTS
Energy Energy
Project, Center
Inc. LLC Eliminations Consolidated
--------- -------- ------------ ------------
Operating Revenues $ -- $ -- $ 5,050 $101,984
-------- -------- -------- --------
Operating Expenses:
Operation -- 9 5,050 94,881
Maintenance -- -- -- 475
Depreciation -- -- -- 1,825
Amortization of regulatory assets -- -- -- 76
Federal and state income taxes 178 -- -- 1,729
Taxes other than income taxes -- -- -- 954
-------- -------- -------- --------
Total operating expenses 178 9 5,050 99,940
-------- -------- -------- --------
Operating Income/(Loss) (178) (9) -- 2,044
-------- -------- -------- --------
Other Income
Equity in earnings of subsidiaries -- -- 928 --
Other, net 2,259 -- -- 4,281
-------- -------- -------- --------
Other income, net 2,259 -- 928 4,281
-------- -------- -------- --------
Income/(loss)
before interest charges 2,081 (9) 928 6,325
-------- -------- -------- --------
Interest Charges 2,038 -- -- 3,936
-------- -------- -------- --------
Net Income/(Loss) $ 43 $ (9) $ 928 $ 2,389
======== ======== ======== ========
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) HEC Energy Consulting Canada Inc., was dissolved on December 31, 2001. The
business was transferred to Select Energy Services, Inc.
F-58
SELECT ENERGY SERVICES INC. AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2001
(Thousands of Dollars)
HEC Energy
Select Select Consulting Reeds
Energy Energy Canada, Ferry
Services, Contracting, Inc. Supply
Inc. Inc. (b) Co., Inc.
-------- ------------ ---------- --------
Balance at beginning of period $ 574 $ (144) $ (6) $ (28)
Additions:
Net income/(loss) 2,389 918 (3) (21)
-------- -------- -------- --------
2,963 774 (9) (49)
-------- -------- -------- --------
Deductions:
Close out of retained earnings due to
transferring subsidiary to Select Energy
Services, Inc. -- -- (9) --
Allocation of benefits-ESOP 32 20 -- --
-------- -------- -------- --------
Total deductions 32 20 (9) --
-------- -------- -------- --------
Balance at end of period $ 2,931 $ 754 $ -- $ (49)
======== ======== ======== ========
SELECT ENERGY SERVICES INC. AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2001
(Thousands of Dollars)
HEC Energy
Select Select Consulting Reeds
Energy Energy Canada, Ferry
Services, Contracting, Inc. Supply
Inc. Inc. (b) Co., Inc.
-------- ------------ ---------- --------
Balance at beginning of period $ 24,900 $ 14,910 $ 7 $ 3
Close out of capital surplus, paid in due to
transferring subsidiary to Select Energy
Services, Inc. -- -- (7) --
Capital contribution from Select Energy
Services, Inc. -- -- -- --
-------- -------- -------- --------
Balance at end of period $ 24,900 $ 14,910 $ -- $ 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.
(b) HEC Energy Consulting Canada, Inc. was dissolved on December 31, 2001. The
business was transferred to Select Energy Services, Inc.
F-59
SELECT ENERGY SERVICES INC. AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2001
(Thousands of Dollars)
HEC/ HEC/
Tobyhanna CJTS
Energy Energy
Project, Center
Inc. LLC Eliminations Consolidated
--------- -------- ------------ ------------
Balance at beginning of period $ 183 $ -- $ 5 $ 574
Additions:
Net income/(loss) 43 (9) 928 2,389
-------- -------- -------- --------
226 (9) 933 2,963
-------- -------- -------- --------
Deductions:
Close out of retained earnings due to
transferring subsidiary to Select Energy
Services, Inc. -- -- (9) --
Allocation of benefits-ESOP -- -- 20 32
-------- -------- -------- --------
Total deductions -- -- 11 32
-------- -------- -------- --------
Balance at end of period $ 226 $ (9) $ 922 $ 2,931
======== ======== ======== ========
SELECT ENERGY SERVICES INC. AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2001
(Thousands of Dollars)
HEC/ HEC/
Tobyhanna CJTS
Energy Energy
Project, Center
Inc. LLC Eliminations Consolidated
--------- -------- ------------ ------------
Balance at beginning of period $ -- $ -- $ 14,920 $ 24,900
Close out of capital surplus, paid in due to
transferring subsidiary to Select Energy
Services, Inc. -- -- (7) --
Capital contribution from Select Energy
Services, Inc. -- 10 10 --
-------- -------- -------- --------
Balance at end of period $ -- $ 10 $ 14,923 $ 24,900
======== ======== ======== ========
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) HEC Energy Consulting Canada, Inc. was dissolved on December 31, 2001. The
business was transferred to Select Energy Services, Inc.
F-60
SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Select Select HEC Energy
Energy Energy Consulting
Services, Contracting, Canada,
Inc. Inc. Inc.
-------- ------------ ----------
Operating Activities:
Income/(loss) after interest charges $ 2,389 $ 918 $ (3)
Adjustments to reconcile to net cash
used in by operating activities:
Depreciation 234 1,571 --
Deferred income taxes and investment tax credits, net (143) (205) --
Allocation of ESOP benefits (32) (20) --
Other sources/(uses) of cash 214 1,539 --
Changes in working capital:
Receivables and accrued utility revenues (4,087) (4,391) --
Fuel, materials and supplies -- 228 --
Accounts payable 956 8 (14)
Accrued taxes -- 619 --
Other working capital (excludes cash) 1,879 (900) (8)
-------- -------- --------
Net cash flows provided by/(used in) operating activities 1,410 (633) (25)
-------- -------- --------
Investing Activities:
Investment in plant:
Electric utility plant (289) (836) --
-------- -------- --------
Net cash flows used for investments in plant (289) (836) --
Other investments (924) -- --
-------- -------- --------
Net cash flows used in investing activities (1,213) (836) --
-------- -------- --------
Financing Activities:
Dissolution of HEC Energy Consulting Canada, Inc. -- -- 2
Retirmement of long-term debt -- -- --
Net decrease in short-term debt (800) -- --
Capital contributions -- -- --
-------- -------- --------
Net cash flows (used in)/provided by financing activities (800) -- 2
-------- -------- --------
Net (decrease)/increase in cash for the period (603) (1,469) (23)
Cash - beginning of period 1,018 1,684 23
-------- -------- --------
Cash - end of period $ 415 $ 215 $ --
======== ======== ========
Supplemental Cash Flow Information:
Cash (refunded)/paid during the year for:
Interest, net of amounts capitalized $ -- $ -- $ --
======== ======== ========
Income taxes $ 1,165 $ 45 $ --
======== ======== ========
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
SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2001
(Thousands of Dollars)
HEC/
Reeds Tobyhanna HEC/CJTS
Ferry Energy Energy
Supply Project, Center
Co., Inc. Inc. LLC Eliminations Consolidated
-------- --------- -------- ------------ ------------
Operating Activities:
Income/(loss) after interest charges $ (21) $ 43 $ (9) $ 928 $ 2,389
Adjustments to reconcile to net cash
used in by operating activities:
Depreciation 20 -- -- -- 1,825
Deferred income taxes and investment tax credits, net -- -- -- -- (348)
Allocation of ESOP benefits -- -- -- (20) (32)
Other sources/(uses) of cash -- (3,198) -- (2) (1,443)
Changes in working capital:
Receivables and accrued utility revenues (50) (664) -- (2,628) (6,563)
Fuel, materials and supplies -- -- -- -- 228
Accounts payable 49 3,403 -- 2,932 1,470
Accrued taxes -- -- -- 321 298
Other working capital (excludes cash) -- 337 -- (625) 1,933
-------- -------- -------- -------- --------
Net cash flows provided by/(used in) operating activities (2) (79) (9) 906 (243)
-------- -------- -------- -------- --------
Investing Activities:
Investment in plant:
Electric utility plant -- -- -- -- (1,125)
-------- -------- -------- -------- --------
Net cash flows used for investments in plant -- -- -- -- (1,125)
Other investments -- -- -- (918) (6)
-------- -------- -------- -------- --------
Net cash flows used in investing activities -- -- -- (918) (1,131)
-------- -------- -------- -------- --------
Financing Activities:
Dissolution of HEC Energy Consulting Canada, Inc. -- -- -- 2 --
Retirement of long-term debt -- (498) -- -- (498)
Net decrease in short-term debt -- -- -- -- (800)
Capital contributions -- -- 10 10 --
-------- -------- -------- -------- --------
Net cash flows (used in)/provided by financing activities -- (498) 10 12 (1,298)
-------- -------- -------- -------- --------
Net (decrease)/increase in cash for the period (2) (577) 1 -- (2,672)
Cash - beginning of period 7 3,102 -- -- 5,834
-------- -------- -------- -------- --------
Cash - end of period $ 5 $ 2,525 $ 1 $ -- $ 3,162
======== ======== ======== ======== ========
Supplemental Cash Flow Information:
Cash (refunded)/paid during the year for:
Interest, net of amounts capitalized $ -- $ -- $ -- $ -- $ 473
======== ======== ======== ======== ========
Income taxes $ -- $ 27 $ -- $ -- $ 1,237
======== ======== ======== ======== ========
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
NU ENTERPRISES, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2001
(Thousands of Dollars)
Northeast
Generation
Services Select Select
NU Northeast Company Energy Energy, Inc.
Enterprises, Generation (consolidated) Portland (consolidated)
Inc. Company (b) Pipeline, Inc. (b)
------------ ---------- -------------- -------------- --------------
Utility Plant, at cost:
Electric $ -- $ 265,309 $ -- $ -- $ --
Other -- -- 2,062 -- 14,243
---------- ---------- ---------- ---------- ----------
-- 265,309 2,062 -- 14,243
Less: Accumulated provision for depreciation -- 150,294 792 -- 5,691
---------- ---------- ---------- ---------- ----------
-- 115,015 1,270 -- 8,552
Construction work in progress -- 21,055 1,116 -- 289
---------- ---------- ---------- ---------- ----------
Total net utility plant -- 136,070 2,386 -- 8,841
---------- ---------- ---------- ---------- ----------
Other Property and Investments:
Investments in subsidiary companies, at equity 546,757 -- -- -- --
Other, at cost 10,000 -- 26 -- --
---------- ---------- ---------- ---------- ----------
556,757 -- 26 -- --
---------- ---------- ---------- ---------- ----------
Current Assets:
Cash 76 6,095 480 377 5,876
Special deposits -- -- -- -- 13,036
Notes receivable from affiliated companies 4,600 9,900 -- -- --
Receivables, net -- -- 21,479 -- 287,608
Accounts receivable from affiliated companies -- 10,642 1,260 -- 107,565
Taxes receivable 65 4,217 -- -- 926
Unbilled revenues -- -- -- -- 34,397
Fuel, materials, and supplies, at average cost -- 1,793 558 -- --
Unrealized gains on mark-to-market -- -- -- -- 72,865
Prepayments and other -- 392 3,255 -- 16,795
---------- ---------- ---------- ---------- ----------
4,741 33,039 27,032 377 539,068
---------- ---------- ---------- ---------- ----------
Deferred Charges:
Accumulated deferred income taxes -- 256,049 200 153 32,682
Unamortized debt expense -- 10,662 -- -- --
Goodwill and other purchased intangible assets, net -- -- 6,963 -- 20,151
Prepaid pension -- -- -- -- 2,716
Other 67 29,148 931 -- 17,740
---------- ---------- ---------- ---------- ----------
67 295,859 8,094 153 73,289
---------- ---------- ---------- ---------- ----------
Total Assets $ 561,565 $ 464,968 $ 37,538 $ 530 $ 621,198
========== ========== ========== ========== ==========
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-63
NU ENTERPRISES, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2001
(Thousands of Dollars)
Select
Energy
Mode 1 Services, Inc.
Communications, (consolidated)
Inc. (b) Eliminations Consolidated
-------------- -------------- ------------ ------------
Utility Plant, at cost:
Electric $ 906 $ -- $ -- $ 266,215
Other -- 24,844 -- 41,149
---------- ---------- ---------- ----------
906 24,844 -- 307,364
Less: Accumulated provision for depreciation 61 8,827 -- 165,665
---------- ---------- ---------- ----------
845 16,017 -- 141,699
Construction work in progress 93 -- -- 22,554
---------- ---------- ---------- ----------
Total net utility plant 938 16,017 -- 164,253
---------- ---------- ---------- ----------
Other Property and Investments:
Investments in subsidiary companies, at equity -- -- 546,757 --
Other, at cost 26,176 6 -- 36,207
---------- ---------- ---------- ----------
26,176 6 546,757 36,207
---------- ---------- ---------- ----------
Current Assets:
Cash 10 3,162 -- 16,077
Special deposits -- -- -- 13,036
Notes receivable from affiliated companies 1,800 -- -- 16,300
Receivables, net 1,546 22,179 -- 332,813
Accounts receivable from affiliated companies -- 94 11,728 107,833
Taxes receivable -- -- 3,207 2,001
Unbilled revenues -- -- -- 34,397
Fuel, materials, and supplies, at average cost -- 267 -- 2,618
Unrealized gains on mark-to-market -- -- -- 72,865
Prepayments and other -- 731 -- 21,172
---------- ---------- ---------- ----------
3,356 26,433 14,935 619,112
---------- ---------- ---------- ----------
Deferred Charges:
Accumulated deferred income taxes -- -- 2,315 286,768
Unamortized debt expense -- -- -- 10,662
Goodwill and other purchased intangible assets, net -- 5,943 (1,547) 34,604
Prepaid pension -- -- -- 2,716
Other -- 45,109 1,601 91,394
---------- ---------- ---------- ----------
-- 51,052 2,369 426,144
---------- ---------- ---------- ----------
Total Assets $ 30,470 $ 93,508 $ 564,061 $1,245,716
========== ========== ========== ==========
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-64
NU ENTERPRISES, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2001
(Thousands of Dollars)
Northeast
Generation
Services Select Select
NU Northeast Company Energy Energy, Inc.
Enterprises, Generation (consolidated) Portland (consolidated)
Inc. Company (b) Pipeline, Inc. (b)
------------ ----------- -------------- -------------- --------------
Capitalization:
Common stockholder's equity:
Common stock $ -- $ -- $ -- $ -- $ --
Capital surplus, paid in 657,870 3,039 10,435 4,359 199,551
Retained earnings (64,925) 11,853 3,170 (3,912) (144,025)
Accumulated other comprehensive income (31,416) (1,941) -- -- (33,459)
----------- ----------- ----------- ----------- -----------
Total common stockholder's equity 561,529 12,951 13,605 447 22,067
Advances from Northeast Utilities -- -- -- -- 33,502
Long-term debt -- 416,000 -- -- --
----------- ----------- ----------- ----------- -----------
Total capitalization 561,529 428,951 13,605 447 55,569
----------- ----------- ----------- ----------- -----------
Current Liabilities:
Notes payable to banks -- -- -- -- --
Notes payable to affiliated companies -- -- 12,500 -- 162,000
Long-term debt - current portion -- 24,000 -- -- --
Accounts payable 1 1,759 3,735 -- 298,079
Accounts payable to affiliated companies 35 1,297 3,205 -- 15,052
Accrued taxes -- 794 2,638 83 --
Accrued interest -- 7,029 -- -- 28
Other -- 1,138 679 -- 27,976
----------- ----------- ----------- ----------- -----------
36 36,017 22,757 83 503,135
----------- ----------- ----------- ----------- -----------
Deferred Credits and Other Long-term Liabilities:
Accumulated deferred income taxes -- -- -- -- --
Other -- -- 1,176 -- 62,494
----------- ----------- ----------- ----------- -----------
-- -- 1,176 -- 62,494
----------- ----------- ----------- ----------- -----------
Total Capitalization and Liabilities $ 561,565 $ 464,968 $ 37,538 $ 530 $ 621,198
=========== =========== =========== =========== ===========
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-65
NU ENTERPRISES, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2001
(Thousands of Dollars)
Select
Energy
Mode 1 Services, Inc.
Communications, (consolidated)
Inc. (b) Eliminations Consolidated
-------------- -------------- ------------ ------------
Capitalization:
Common stockholder's equity:
Common stock $ -- $ -- $ -- $ --
Capital surplus, paid in 29,357 24,900 716,775 212,735
Retained earnings (8,619) 2,931 (138,602) (64,925)
Accumulated other comprehensive income 3,982 -- (31,416) (31,416)
----------- ----------- ----------- -----------
Total common stockholder's equity 24,720 27,831 546,757 116,394
Advances from Northeast Utilities -- -- -- 33,502
Long-term debt -- 25,979 -- 441,979
----------- ----------- ----------- -----------
Total capitalization 24,720 53,810 546,757 591,875
----------- ----------- ----------- -----------
Current Liabilities:
Notes payable to banks -- -- -- --
Notes payable to affiliated companies -- 14,500 -- 189,000
Long-term debt - current portion -- -- -- 24,000
Accounts payable 1 8,136 -- 311,710
Accounts payable to affiliated companies 129 205 11,728 8,195
Accrued taxes 188 298 3,207 794
Accrued interest -- 744 -- 7,801
Other 10 15,535 -- 45,338
----------- ----------- ----------- -----------
328 39,418 14,935 586,838
----------- ----------- ----------- -----------
Deferred Credits and Other Long-term Liabilities:
Accumulated deferred income taxes 2,036 280 2,315 --
Other 3,386 -- 54 67,003
----------- ----------- ----------- -----------
5,422 280 2,369 67,003
----------- ----------- ----------- -----------
Total Capitalization and Liabilities $ 30,470 $ 93,508 $ 564,061 $ 1,245,716
=========== =========== =========== ===========
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-66
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Northeast
Generation
Service Select Energy Select
NU Northeast Company Portland Energy, Inc.
Enterprises, Generation (consolidated) Pipeline, (consolidated)
Inc. Company (b) Inc. (b)
----------- ----------- -------------- ------------- --------------
Operating Revenues $ -- $ 129,681 $ 112,012 $ -- $ 2,780,280
----------- ----------- ----------- ----------- -----------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power -- -- 2,449 -- 2,800,317
Other 300 15,426 47,646 8 40,622
Maintenance -- 6,902 55,245 -- 51
Depreciation -- 3,040 393 -- 3,596
Amortization of regulatory assets -- -- -- -- 1,191
Federal and state income taxes (110) 28,432 2,344 31 (30,844)
Taxes other than income taxes 11 7,375 256 -- 4,258
----------- ----------- ----------- ----------- -----------
Total operating expenses 201 61,175 108,333 39 2,819,191
----------- ----------- ----------- ----------- -----------
Operating (Loss)/Income (201) 68,506 3,679 (39) (38,911)
----------- ----------- ----------- ----------- -----------
Other (Loss)/Income:
Equity in loss of subsidiaries (24,451) -- -- -- --
Other, net 49 1,113 1,644 -- 327
Income Taxes -- -- (133) -- (136)
----------- ----------- ----------- ----------- -----------
Other (loss)/Income, net (24,402) 1,113 1,511 -- 191
----------- ----------- ----------- ----------- -----------
(Loss)/Income before interest charges (24,603) 69,619 5,190 (39) (38,720)
----------- ----------- ----------- ----------- -----------
Interest Charges:
Interest on long-term debt -- 7,396 -- -- --
Other interest 5 19,966 611 2 8,589
----------- ----------- ----------- ----------- -----------
Interest charges, net 5 27,362 611 2 8,589
----------- ----------- ----------- ----------- -----------
(Loss)/Income before cumulative effect of
accounting change, net of tax benefit (24,608) 42,257 4,579 (41) (47,309)
Cumulative effect of accounting change,
net of tax benefit -- -- -- -- (21,985)
----------- ----------- ----------- ----------- -----------
Net (Loss)/Income $ (24,608) $ 42,257 $ 4,579 $ (41) $ (69,294)
=========== =========== =========== =========== ===========
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-67
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Select Energy
MODE 1 Services Inc.
Communications, (consolidated)
Inc. (b) Eliminations Consolidated
--------------- -------------- ------------ ------------
Operating Revenues $ 194 $ 101,984 $ 148,154 $ 2,975,996
----------- ----------- ----------- -----------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power -- -- 129,386 2,673,379
Other 390 94,881 11,879 187,394
Maintenance -- 475 6,889 55,783
Depreciation 36 1,825 1,973 6,917
Amortization of regulatory assets -- 76 -- 1,267
Federal and state income taxes (4,211) 1,729 -- (2,629)
Taxes other than income taxes -- 954 -- 12,855
----------- ----------- ----------- -----------
Total operating expenses (3,785) 99,940 150,127 2,934,966
----------- ----------- ----------- -----------
Operating (Loss)/Income 3,979 2,044 (1,973) 41,030
----------- ----------- ----------- -----------
Other (Loss)/Income:
Equity in loss of subsidiaries -- -- (24,451) --
Other, net (8,317) 4,281 1,973 (2,877)
Income Taxes -- -- -- (269)
----------- ----------- ----------- -----------
Other (loss)/Income, net (8,317) 4,281 (22,478) (3,146)
----------- ----------- ----------- -----------
(Loss)/Income before interest charges (4,338) 6,325 (24,451) 37,884
----------- ----------- ----------- -----------
Interest Charges:
Interest on long-term debt -- -- -- 7,396
Other interest 3 3,936 -- 33,111
----------- ----------- ----------- -----------
Interest charges, net 3 3,936 -- 40,507
----------- ----------- ----------- -----------
(Loss)/Income before cumulative effect of
accounting change, net of tax benefit (4,341) 2,389 (24,451) (2,623)
Cumulative effect of accounting change,
net of tax benefit -- -- -- (21,985)
----------- ----------- ----------- -----------
Net (Loss)/Income $ (4,341) $ 2,389 $ (24,451) $ (24,608)
=========== =========== =========== ===========
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-68
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Northeast
Generation
Service Select Energy Select
NU Northeast Company Portland Energy, Inc.
Enterprises, Generation (consolidated) Pipeline, (consolidated)
Inc. Company (b) Inc. (b)
----------- ----------- -------------- ------------- --------------
Balance at beginning of period $ (40,183) $ 23,260 $ (1,360) $ (3,871) $ (74,678)
Additions:
Net (Loss)/Income (24,608) 42,257 4,579 (41) (69,294)
--------- --------- --------- --------- ---------
(64,791) 65,517 3,219 (3,912) (143,972)
--------- --------- --------- --------- ---------
Deductions:
Dividends declared:
Common stock $570,893.25 per share -- 53,664 -- -- --
Allocation of benefits-ESOP 134 -- 49 -- 53
--------- --------- --------- --------- ---------
Total deductions 134 53,664 49 -- 53
--------- --------- --------- --------- ---------
Balance at end of period $ (64,925) $ 11,853 $ 3,170 $ (3,912) $(144,025)
========= ========= ========= ========= =========
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Northeast
Generation
Service Select Energy Select
NU Northeast Company Portland Energy, Inc.
Enterprises, Generation (consolidated) Pipeline, (consolidated)
Inc. Company (b) Inc. (b)
----------- ----------- -------------- ------------- --------------
Balance at beginning of period $ 600,645 $ 24,375 $ 2,010 $ 9,257 $ 90,151
Repurchase of common stock (75,000) (21,336) -- -- --
Capital contributions from:
NU Enterprises, Inc. -- -- 8,425 -- 80,000
Northeast Utilities 103,425 -- -- -- --
Convert advance from NU Enterprises, Inc
to capital contribution -- -- -- -- 29,400
Convert advance from Northeast Utilities
to capital contribution 28,800 -- -- -- --
Dividends paid on common shares:
$32,680.00 per share -- -- -- (3,268) --
$16,300.00 per share -- -- -- (1,630) --
--------- --------- --------- --------- ---------
Balance at end of period $ 657,870 $ 3,039 $ 10,435 $ 4,359 $ 199,551
========= ========= ========= ========= =========
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-69
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Select Energy
MODE 1 Services Inc.
Communications, (consolidated)
Inc. (b) Eliminations Consolidated
--------------- -------------- ------------ ------------
Balance at beginning of period $ (4,278) $ 574 $ (60,353) $ (40,183)
Additions:
Net (Loss)/Income (4,341) 2,389 (24,451) (24,608)
--------- --------- --------- ---------
(8,619) 2,963 (84,804) (64,791)
--------- --------- --------- ---------
Deductions:
Dividends declared:
Common stock $570,893.25 per share -- -- 53,664 --
Allocation of benefits-ESOP -- 32 134 134
--------- --------- --------- ---------
Total deductions -- 32 53,798 134
--------- --------- --------- ---------
Balance at end of period $ (8,619) $ 2,931 $(138,602) $ (64,925)
========= ========= ========= =========
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Select Energy
MODE 1 Services Inc.
Communications, (consolidated)
Inc. (b) Eliminations Consolidated
--------------- -------------- ------------ ------------
Balance at beginning of period $ 14,357 $ 24,900 $ 610,184 $ 155,510
Repurchase of common stock -- -- (21,336) (75,000)
Capital contributions from:
NU Enterprises, Inc. 15,000 -- 103,425 --
Northeast Utilities -- -- -- 103,425
Convert advance from NU Enterprises, Inc
to capital contribution -- -- 29,400 --
Convert advance from Northeast Utilities
to capital contribution -- -- -- 28,800
Dividends paid on common shares:
$32,680.00 per share -- -- (3,268) --
$16,300.00 per share -- -- (1,630) --
--------- --------- --------- ---------
Balance at end of period $ 29,357 $ 24,900 $ 716,775 $ 212,735
========= ========= ========= =========
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-70
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Northeast
Generation Select
Service Energy
NU Northeast Company Portland
Enterprises, Generation (consolidated) Pipeline,
Inc. Company (b) Inc.
----------- ----------- -------------- -------------
Operating Activities:
(Loss)/income before cumulative effect
of accounting change $ (24,608) $ 42,257 $ 4,579 $ (41)
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation -- 3,040 393 --
Deferred income taxes and investment tax credits, net 66 23,565 (199) 1,460
Amortization of regulatory assets -- -- -- --
Cumulative effect of accounting change -- -- -- --
Allocation of ESOP benefits (134) -- (49) --
Accumulated comprehensive (loss)/income (31,416) (1,941) -- --
Net other (uses)/sources of cash (67) (36,216) (8,625) --
Changes in working capital:
Accounts receivable -- 777 (11,277) --
Fuel, materials and supplies -- 142 (343) --
Accounts payable (41) 553 (799) (1)
Accrued taxes -- (5,046) 843 83
Unrealized gains on mark-to-market transactions -- -- -- --
Other working capital (excludes cash) (24) 2,478 (1,970) 151
--------- --------- --------- ---------
Net cash flows (used in)/provided by operating activities (56,224) 29,609 (17,447) 1,652
--------- --------- --------- ---------
Investing Activities:
Investments in regulated plant -- -- -- --
Investments in competitive energy assets -- (13,414) -- --
Investment in NU system Money Pool (4,600) (9,900) -- --
Other investments 32,475 -- (26) 3,268
Payment for the purchase of SENY, net of cash acquired -- -- -- --
--------- --------- --------- ---------
Net cash flows provided by/(used in) investing activities 27,875 (23,314) (26) 3,268
--------- --------- --------- ---------
Financing Activities:
Repurchase common stock (75,000) (21,336) -- --
Net (decrease)/increase in short-term debt -- (402,377) 9,400 --
Issuance of long-term debt -- 440,000 -- --
Reacquisitions and retirements of long-term debt -- -- -- --
Advances from parent, net (28,800) -- -- --
Cash dividends on preferred stock -- -- -- --
Cash dividends on common shares -- (53,664) -- (4,898)
Capital contributions 132,225 -- 8,425 --
--------- --------- --------- ---------
Net cash flows provided by/(used in) financing activities 28,425 (37,377) 17,825 (4,898)
--------- --------- --------- ---------
Net increase/(decrease) in cash for the period 76 (31,082) 352 22
Cash - beginning of period -- 37,177 128 355
--------- --------- --------- ---------
Cash - end of period $ 76 $ 6,095 $ 480 $ 377
========= ========= ========= =========
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 2 $ 22,726 $ 348 $ 2
========= ========= ========= =========
Income taxes $ (150) $ 12,901 $ 2,431 $ (1,663)
========= ========= ========= =========
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-71
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Select
Energy, Inc. MODE 1 SES Inc.
(consolidated) Communications, (consolidated)
(b) Inc. (b) Eliminations
-------------- --------------- -------------- ------------
Operating Activities:
(Loss)/income before cumulative effect
of accounting change $ (47,309) $ (4,341) $ 2,389 $ (24,451)
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 3,596 36 1,825 1,973
Deferred income taxes and investment tax credits, net 10,573 (3,517) (348) --
Amortization of regulatory assets 1,191 -- 76 --
Cumulative effect of accounting change (21,985) -- -- --
Allocation of ESOP benefits (53) -- (32) (134)
Accumulated comprehensive (loss)/income (33,459) 3,982 -- (31,416)
Net other (uses)/sources of cash (10,705) 3,787 (1,519) (5,037)
Changes in working capital:
Accounts receivable (130,467) (939) (6,563) 4,629
Fuel, materials and supplies -- -- 228 (658)
Accounts payable 105,043 28 1,470 (4,560)
Accrued taxes (1,706) 171 298 (2,463)
Unrealized gains on mark-to-market transactions (45,989) -- -- --
Other working capital (excludes cash) 19,500 9 1,933 13,171
--------- --------- --------- ---------
Net cash flows (used in)/provided by operating activities (151,770) (784) (243) (48,946)
--------- --------- --------- ---------
Investing Activities:
Investments in regulated plant -- (40) -- --
Investments in competitive energy assets (1,457) -- (1,125) (1,178)
Investment in NU system Money Pool -- (1,000) -- --
Other investments -- (13,227) (6) 32,475
Payment for the purchase of SENY, net of cash acquired (31,699) -- -- (5,876)
--------- --------- --------- ---------
Net cash flows provided by/(used in) investing activities (33,156) (14,267) (1,131) 25,421
--------- --------- --------- ---------
Financing Activities:
Repurchase common stock -- -- -- (21,336)
Net (decrease)/increase in short-term debt 77,300 -- (800) --
Issuance of long-term debt -- -- -- --
Reacquisitions and retirements of long-term debt -- -- (498) --
Advances from parent, net 4,102 -- -- (29,400)
Cash dividends on preferred stock -- -- -- --
Cash dividends on common shares -- -- -- (58,562)
Capital contributions 109,400 15,000 -- 132,825
--------- --------- --------- ---------
Net cash flows provided by/(used in) financing activities 190,802 15,000 (1,298) 23,527
--------- --------- --------- ---------
Net increase/(decrease) in cash for the period 5,876 (51) (2,672) --
Cash - beginning of period -- 61 5,834 --
--------- --------- --------- ---------
Cash - end of period $ 5,876 $ 10 $ 3,162 $ --
========= ========= ========= =========
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 6,184 $ -- $ 473 $ --
========= ========= ========= =========
Income taxes $ (44,850) $ (866) $ 1,237 $ --
========= ========= ========= =========
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.
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Consolidated
------------
Operating Activities:
(Loss)/income before cumulative effect
of accounting change $ (2,623)
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 6,917
Deferred income taxes and investment tax credits, net 31,599
Amortization of regulatory assets 1,267
Cumulative effect of accounting change (21,985)
Allocation of ESOP benefits (134)
Accumulated comprehensive (loss)/income (31,416)
Net other (uses)/sources of cash (48,308)
Changes in working capital:
Accounts receivable (153,098)
Fuel, materials and supplies 685
Accounts payable 110,812
Accrued taxes (2,894)
Unrealized gains on mark-to-market transactions (45,989)
Other working capital (excludes cash) 8,908
---------
Net cash flows (used in)/provided by operating activities (146,259)
---------
Investing Activities:
Investments in regulated plant (40)
Investments in competitive energy assets (14,818)
Investment in NU system Money Pool (15,500)
Other investments (9,990)
Payment for the purchase of SENY, net of cash acquired (25,823)
---------
Net cash flows provided by/(used in) investing activities (66,171)
---------
Financing Activities:
Repurchase common stock (75,000)
Net (decrease)/increase in short-term debt (316,477)
Issuance of long-term debt 440,000
Reacquisitions and retirements of long-term debt (498)
Advances from parent, net 4,702
Cash dividends on preferred stock --
Cash dividends on common shares --
Capital contributions 132,825
---------
Net cash flows provided by/(used in) financing activities 184,952
---------
Net increase/(decrease) in cash for the period (27,478)
Cash - beginning of period 43,555
---------
Cash - end of period $ 16,077
=========
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 29,735
=========
Income taxes $ (30,960)
=========
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-72
SELECT ENERGY, INC
AND SUBSIDIARY
Consolidating Balance Sheet (a)
Assets
December 31, 2001
(Thousands of Dollars)
Select Select Energy
Energy, Inc. New York, Inc. Eliminations Consolidated
------------ -------------- ------------ ------------
Utility Plant, at cost:
Other $ 12,051 $ 2,193 $ -- $ 14,243
Less: Accumulated provision for depreciation 3,736 1,955 -- 5,691
---------- ---------- ---------- ----------
8,315 238 -- 8,552
Construction work in progress 289 -- -- 289
---------- ---------- ---------- ----------
Total net utility plant 8,604 238 -- 8,841
---------- ---------- ---------- ----------
Other Property and Investments:
Investments in subsidiary companies, at equity 5,892 -- 5,892 --
---------- ---------- ---------- ----------
5,892 -- 5,892 --
---------- ---------- ---------- ----------
Current Assets:
Cash -- 5,876 -- 5,876
Special deposits 13,036 -- -- 13,036
Receivables, net 242,735 44,873 -- 287,608
Accounts receivable from affiliated companies 107,567 -- 2 107,565
Taxes receivable 2,282 -- 1,356 926
Unbilled revenues 34,397 -- -- 34,397
Unrealized gains on mark-to-market transactions 60,836 12,030 -- 72,865
Prepayments and other 11,133 5,662 -- 16,795
---------- ---------- ---------- ----------
471,986 68,441 1,358 539,068
---------- ---------- ---------- ----------
Deferred Charges:
Accumulated deferred income taxes 32,585 96 -- 32,682
Goodwill and other purchased intangible assets,net 20,151 -- -- 20,151
Prepaid pension 2,716 -- -- 2,716
Other 17,805 -- 65 17,740
---------- ---------- ---------- ----------
73,257 96 65 73,289
---------- ---------- ---------- ----------
Total Assets $ 559,739 $ 68,775 $ 7,315 $ 621,198
========== ========== ========== ==========
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, INC
AND SUBSIDIARY
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2001
(Thousands of Dollars)
Select Select Energy
Energy, Inc. New York, Inc. Eliminations Consolidated
------------ -------------- ------------ ------------
Capitalization:
Common stockholder's equity:
Common stock $ -- $ 10 $ 10 $ --
Capital surplus, paid in 199,551 3,187 3,187 199,551
Retained earnings (144,025) 2,695 2,695 (144,025)
Accumulated other comprehensive loss (33,459) -- -- (33,459)
---------- ---------- ---------- ----------
Total common stockholder's equity 22,067 5,892 5,892 22,067
---------- ---------- ---------- ----------
Long-term debt:
Advances from Northeast Utilities -- 33,502 -- 33,502
---------- ---------- ---------- ----------
Total capitalization 22,067 39,394 5,892 55,569
---------- ---------- ---------- ----------
Current Liabilities:
Notes payable to affiliated companies 162,000 -- -- 162,000
Accounts payable 273,166 24,913 -- 298,079
Accounts payable to affiliated companies 15,018 37 2 15,052
Accrued taxes -- 1,356 1,356 --
Accrued interest 28 -- -- 28
Other 24,966 3,075 65 27,976
---------- ---------- ---------- ----------
475,178 29,381 1,423 503,135
---------- ---------- ---------- ----------
Deferred Credits and Other Long-term Liabilities:
Other 62,494 -- -- 62,494
---------- ---------- ---------- ----------
62,494 -- -- 62,494
---------- ---------- ---------- ----------
Total Capitalization and Liabilities $ 559,739 $ 68,775 $ 7,315 $ 621,198
========== ========== ========== ==========
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-74
SELECT ENERGY, INC
AND SUBSIDIARY
Consolidating Statement of Income (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Select Select Energy
Energy, Inc. New York, Inc. Eliminations Consolidated
------------ -------------- ------------ ------------
Operating Revenues $ 2,749,628 $ 30,651 $ -- $ 2,780,280
----------- ----------- ----------- -----------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power 2,774,370 25,947 -- 2,800,317
Other 39,977 645 -- 40,622
Maintenance 50 1 -- 51
Depreciation 3,596 -- -- 3,596
Amortization of regulatory assets 1,191 -- -- 1,191
Federal and state income taxes (32,296) 1,451 -- (30,844)
Taxes other than income taxes 4,346 (88) -- 4,258
----------- ----------- ----------- -----------
Total operating expenses 2,791,234 27,956 -- 2,819,191
----------- ----------- ----------- -----------
Operating (Loss)/Income (41,606) 2,695 -- (38,911)
----------- ----------- ----------- -----------
Other Income/(Loss):
Equity in earnings of subsidiary 2,695 -- 2,695 --
Other, net 316 11 -- 327
Income taxes (136) -- -- (136)
----------- ----------- ----------- -----------
Other income/(loss), net 2,875 11 2,695 191
----------- ----------- ----------- -----------
(Loss)/Income before interest charges (38,731) 2,706 2,695 (38,720)
----------- ----------- ----------- -----------
Interest Charges 8,578 11 -- 8,589
----------- ----------- ----------- -----------
(Loss)/Income before cumulative effect of
accounting change, net of tax benefit (47,309) 2,695 2,695 (47,309)
Cumulative effect of accounting change,
net of tax benefit (21,985) -- -- (21,985)
----------- ----------- ----------- -----------
Net (Loss)/Income $ (69,294) $ 2,695 $ 2,695 $ (69,294)
=========== =========== =========== ===========
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, INC
AND SUBSIDIARY
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Select Select Energy
Energy, Inc. New York, Inc. Eliminations Consolidated
------------ -------------- ------------ ------------
Balance at beginning of period $ (74,678) $ -- $ -- $ (74,678)
Additions:
Net (Loss)/Income (69,294) 2,695 2,695 (69,294)
Deductions:
Allocation of benefits-ESOP 53 -- -- 53
---------- ---------- ---------- ----------
Balance at end of period $ (144,025) $ 2,695 $ 2,695 $ (144,025)
========== ========== ========== ==========
SELECT ENERGY, INC
AND SUBSIDIARY
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Select Select Energy
Energy, Inc. New York, Inc. Eliminations Consolidated
------------ -------------- ------------ ------------
Balance at beginning of period $ 90,151 $ -- $ -- $ 90,151
Additions:
Capital contributions from:
NU Enterprises, Inc. 80,000 -- -- 80,000
Select Energy, Inc. -- 5,000 5,000 --
Convert advance from NU Enterprises, Inc
to capital contribution 29,400 -- -- 29,400
Acquisition of Select Energy New York, Inc. -- 31,689 31,689 --
Deductions:
Repurchase of common equity -- (33,502) (33,502) --
---------- ---------- ---------- ----------
Balance at end of period $ 199,551 $ 3,187 $ 3,187 $ 199,551
========== ========== ========== ==========
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-76
SELECT ENERGY INC. AND SUBSIDIARY
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Select Energy
Select of New York
Energy, Inc. Inc. Eliminations Consolidated
----------- ------------- ------------ ------------
Operating Activities:
(Loss)/income before
cumulative effect of accounting change $ (47,309) $ 2,695 $ 2,695 $ (47,309)
Adjustments to reconcile to net cash
(used in)/provided by operating activities:
Depreciation 3,596 -- -- 3,596
Deferred income taxes and investment tax credits, net 10,223 350 -- 10,573
Amortization of regulatory assets 1,191 -- -- 1,191
Cumulative effect of accounting change (21,985) -- -- (21,985)
Allocation of ESOP benefits (53) -- -- (53)
Accumulated comprehensive loss (33,459) -- -- (33,459)
Net other (uses)/sources of cash (10,804) 34 (65) (10,705)
Changes in working capital:
Receivables, including unbilled revenues (141,391) 10,922 (2) (130,467)
Accounts payable 110,381 (5,335) 2 105,043
Accrued taxes (1,706) 1,356 1,356 (1,706)
Unrealized gains on mark-to-market transactions (33,960) (12,030) -- (45,989)
Other working capital (excludes cash) 15,325 2,884 (1,291) 19,500
---------- ---------- ---------- ----------
Net cash flows (used in)/provided by operating activities (149,951) 876 2,695 (151,770)
---------- ---------- ---------- ----------
Investing Activities:
Investments in competitive energy assets (1,457) -- -- (1,457)
Investment in subsidiary company 25,807 -- 25,807 --
Payment for the purchase of SENY, net of cash acquired (31,699) -- -- (31,699)
---------- ---------- ---------- ----------
Net cash flows (used in)/provided by investing activities (7,349) -- 25,807 (33,156)
---------- ---------- ---------- ----------
Financing Activities:
Net increase in short-term debt 77,300 -- -- 77,300
Capital contributions 109,400 5,000 5,000 109,400
Advances from parent, net (29,400) 33,502 -- 4,102
Repurchase of common equity -- (33,502) (33,502) --
---------- ---------- ---------- ----------
Net cash flows provided by/(used in) financing activities 157,300 5,000 (28,502) 190,802
---------- ---------- ---------- ----------
Net increase in cash for the period -- 5,876 -- 5,876
Cash - beginning of period -- -- -- --
---------- ---------- ---------- ----------
Cash - end of period $ -- $ 5,876 $ -- $ 5,876
========== ========== ========== ==========
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 6,173 $ 11 $ -- $ 6,184
========== ========== ========== ==========
Income taxes $ (44,850) $ -- $ -- $ (44,850)
========== ========== ========== ==========
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
This Page Intentionally Left Blank
F-78
NORTHEAST GENERATION SERVICES COMPANY
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2001
(Thousands of Dollars)
Northeast
Generation NGS E. S. Boulos
Services Company Mechanical Inc. Company Eliminations Consolidated
---------------- --------------- ------------ ------------ ------------
Utility Plant, at cost:
Other $ 1,514 $ -- $ 547 $ -- $ 2,062
Less: Accumulated provision for depreciation 711 -- 81 -- 792
--------- --------- --------- --------- ---------
803 -- 466 -- 1,270
Construction work in progress 1,116 -- -- -- 1,116
--------- --------- --------- --------- ---------
Total net utility plant 1,919 -- 466 -- 2,386
--------- --------- --------- --------- ---------
Other Property and Investments:
Investments in subsidiary companies, at equity 13,902 -- -- 13,902 --
Other, at cost -- -- 26 -- 26
--------- --------- --------- --------- ---------
13,902 -- 26 13,902 26
--------- --------- --------- --------- ---------
Current Assets:
Cash 184 10 286 -- 480
Receivables, net 11,766 -- 9,713 -- 21,479
Accounts receivable from affiliated companies 1,274 -- 872 885 1,260
Fuel, materials, and supplies, at average cost 455 -- 103 -- 558
Prepayments and other 1,572 -- 1,683 -- 3,255
--------- --------- --------- --------- ---------
15,251 10 12,657 885 27,032
--------- --------- --------- --------- ---------
Deferred Charges:
Accumulated deferred income taxes 200 -- -- -- 200
Goodwill and other purchased intangible assets,net -- -- 6,963 -- 6,963
Other 930 -- 1 -- 931
--------- --------- --------- --------- ---------
1,130 -- 6,964 -- 8,094
--------- --------- --------- --------- ---------
Total Assets $ 32,202 $ 10 $ 20,113 $ 14,787 $ 37,538
========= ========= ========= ========= =========
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
NORTHEAST GENERATION SERVICES COMPANY
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2001
(Thousands of Dollars)
Northeast
Generation NGS E. S. Boulos
Services Company Mechanical Inc. Company Eliminations Consolidated
---------------- --------------- ------------ ------------ ------------
Capitalization:
Common stockholder's equity:
Common stock $ -- $ -- $ -- $ -- $ --
Capital surplus, paid in 10,435 10 7,539 7,549 10,435
Retained earnings 3,170 (1) 3,406 3,405 3,170
--------- --------- --------- --------- ---------
Total common stockholder's equity 13,605 9 10,945 10,954 13,605
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Total capitalization 13,605 9 10,945 10,954 13,605
--------- --------- --------- --------- ---------
Current Liabilities:
Notes payable to affiliated companies 12,500 -- -- -- 12,500
Advance from parent, non-interest bearing -- -- 2,948 2,948 --
Accounts payable 498 -- 3,237 -- 3,735
Accounts payable to affiliated companies 3,833 1 256 885 3,205
Accrued taxes 1,590 -- 1,048 -- 2,638
Other 139 -- 540 -- 679
--------- --------- --------- --------- ---------
18,560 1 8,029 3,833 22,757
--------- --------- --------- --------- ---------
Deferred Credits and Other Long-term Liabilities:
Other 37 -- 1,139 -- 1,176
--------- --------- --------- --------- ---------
37 -- 1,139 -- 1,176
--------- --------- --------- --------- ---------
Total Capitalization and Liabilities $ 32,202 $ 10 $ 20,113 $ 14,787 $ 37,538
========= ========= ========= ========= =========
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-80
NORTHEAST GENERATION SERVICES COMPANY
AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Northeast
Generation NGS E. S. Boulos
Services Company Mechanical Inc. Company Eliminations Consolidated
---------------- --------------- ------------ ------------ ------------
Operating Revenues $ 67,588 $ -- $ 45,946 $ 1,522 $ 112,012
--------- --------- --------- --------- ---------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power 2,449 -- -- -- 2,449
Other 47,949 1 1,218 1,522 47,646
Maintenance 14,761 -- 40,485 -- 55,245
Depreciation 36 -- 356 -- 393
Federal and state income taxes 95 -- 2,249 -- 2,344
Taxes other than income taxes 256 -- -- -- 256
--------- --------- --------- --------- ---------
Total operating expenses 65,546 1 44,308 1,522 108,333
--------- --------- --------- --------- ---------
Operating Income/(Loss) 2,042 (1) 1,638 -- 3,679
--------- --------- --------- --------- ---------
Other Income:
Equity in earnings of subsidiaries 3,405 -- -- 3,405 --
Other, net (124) -- 1,768 -- 1,644
Income taxes (133) -- -- -- (133)
--------- --------- --------- --------- ---------
Other income, net 3,148 -- 1,768 3,405 1,511
--------- --------- --------- --------- ---------
Income/(loss) before interest charges 5,190 (1) 3,406 3,405 5,190
--------- --------- --------- --------- ---------
Interest Charges:
Other interest 611 -- -- -- 611
--------- --------- --------- --------- ---------
Interest charges, net 611 -- -- -- 611
--------- --------- --------- --------- ---------
Net Income/(Loss) $ 4,579 $ (1) $ 3,406 $ 3,405 $ 4,579
========= ========= ========= ========= =========
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
NORTHEAST GENERATION SERVICES COMPANY
AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Northeast
Generation NGS E. S. Boulos
Services Company Mechanical Inc. Company Eliminations Consolidated
---------------- --------------- ------------ ------------ ------------
Balance at beginning of period $ (1,360) $ -- $ -- $ -- $ (1,360)
Additions:
Net Income/(Loss) 4,579 (1) 3,406 3,405 4,579
Deductions:
Allocation of benefits-ESOP 49 -- -- -- 49
--------- --------- --------- --------- ---------
Balance at end of period $ 3,170 $ (1) $ 3,406 $ 3,405 $ 3,170
========= ========= ========= ========= =========
NORTHEAST GENERATION SERVICES COMPANY
AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Northeast
Generation NGS E. S. Boulos
Services Company Mechanical Inc. Company Eliminations Consolidated
---------------- --------------- ------------ ------------ ------------
Balance at beginning of period $ 2,010 $ -- $ -- $ -- $ 2,010
Premium on common stock -- 10 10 20 --
Capital contribution from NU Enterprises, Inc. 8,425 -- -- -- 8,425
Capital contribution from Northeast
Generation Services Company -- -- 7,529 7,529 --
--------- --------- --------- --------- ---------
Balance at end of period $ 10,435 $ 10 $ 7,539 $ 7,549 $ 10,435
========= ========= ========= ========= =========
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-82
NORTHEAST GENERATION SERVICES COMPANY
AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2001
(Thousands of Dollars)
Northeast
Northeast NGS Generation
Generation Mechanical E.S. Boulous Services Company
Services Company Inc. Company Eliminations Consolidated
---------------- ---------- ------------ ------------ ----------------
Operating Activities:
Income/(loss) after interest charges $ 4,579 $ (1) $ 3,406 $ 3,405 $ 4,579
Adjustments to reconcile to net cash --
(used in)/provided by operating activities:
Depreciation 36 -- 356 -- 393
Deferred income taxes and investment tax credits, net (199) -- -- -- (199)
Allocation of ESOP benefits (49) -- -- -- (49)
Net other uses of cash (1,976) -- (6,647) -- (8,625)
Changes in working capital: --
Receivables (1,578) -- (10,585) (885) (11,277)
Fuel, materials and supplies (240) -- (103) -- (343)
Accounts payable (3,408) 1 3,493 885 (799)
Accrued taxes (205) -- 1,048 -- 843
Other working capital (excludes cash) (827) -- (1,143) -- (1,970)
-------- -------- -------- -------- --------
Net cash flows (used in)/provided by operating activities (3,867) -- (10,175) 3,405 (17,447)
-------- -------- -------- -------- --------
Investing Activities:
Other investments (13,902) -- (26) (13,902) (26)
-------- -------- -------- -------- --------
Net cash flows used in investing activities (13,902) -- (26) (13,902) (26)
-------- -------- -------- -------- --------
Financing Activities:
Net increase in short-term debt 9,400 -- -- -- 9,400
Advance from parent -- -- 2,948 2,948 --
Premium on capital stock -- 10 10 20 --
Capital contributions 8,425 -- 7,529 7,529 8,425
-------- -------- -------- -------- --------
Net cash flows provided by financing activities 17,825 10 10,487 10,497 17,825
-------- -------- -------- -------- --------
Net increase in cash for the period 56 10 286 -- 352
Cash - beginning of period 128 -- -- -- 128
-------- -------- -------- -------- --------
Cash - end of period $ 184 $ 10 $ 286 $ -- $ 480
======== ======== ======== ======== ========
Supplemental Cash Flow Information:
Cash paid during the year for:
Interest, net of amounts capitalized $ 348 $ -- $ -- $ -- $ 348
======== ======== ======== ======== ========
Income taxes $ 624 $ -- $ 1,807 $ -- $ 2,431
======== ======== ======== ======== ========
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-83
NOTES TO FINANCIAL STATEMENTS
NU Reference is made to "Notes to Consolidated Financial Statements"
contained on pages 35 through 49 in NU's 2001 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 20 through 42 in CL&P's 2001 Annual Report, which
information is incorporated herein by reference.
PSNH Reference is made to "Notes to Financial Statements" contained on
pages 18 through 37 in PSNH's 2001 Annual Report, which information is
incorporated herein by reference.
WMECO Reference is made to "Notes to Consolidated Financial Statements"
contained on pages 18 through 37 in WMECO's 2001 Annual Report, which
information is incorporated herein by reference.
NGC Reference is made to "Notes to Financial Statements" contained on
pages 12 through 22 in NGC's 2001 Annual Report, which information is
incorporated herein by reference.
F-84
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 2001 Annual Report on Form 10-K for NU. (File No. 1-5324)
A.2 2001 Annual Report on Form 10-K for CL&P. (File No. 0-11419)
A.3 2001 Annual Report on Form 10-K for PSNH. (File No. 1-6392)
A.4 2001 Annual Report on Form 10-K for WMECO. (File No. 0-7624)
A.5 2001 Annual Report on Form 10-K for NGC. (File No. 333-74636)
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
24, 1988. (Exhibit 3.1.1, 1988 NU Form 10-K, File
No. 1-5324)
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 B.3.1, 1997 NU Form U53, File No.
30-246)
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 April 1, 1999.
(Exhibit 3.1, 1999 NU Form 10-Q, File No. 1-5324)
B.4.3 By-Laws of WMECO, as further 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 November 8, 1993.
(Exhibit 3.5.3, 1993 NU Form 10-K, File No.
1-5324)
B.5.4 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. 30-246)
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. 30-246)
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. 30-246)
E-2
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)
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
Form U5S, File No. 30-246)
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. 30-246)
B.7.4 By-Laws of The Rocky River Realty Company, as
amended to February 11, 1998. (Exhibit B.7.4, 1997
NU Form U5S, File No. 30-246)
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. 30-246)
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. (Exhibit B.11.2, 1996 NU Form
U5S, File No. 30-246)
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. 30-246)
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. 30-246)
B.10.3 By-Laws of The Connecticut Steam Company, as
amended to January 1, 1997. (Exhibit B.12.3, 1996
NU Form U5S, File No. 30-246)
B.11 Holyoke Water Power Company
B.11.1 Charter 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, NU Form
U5S, File No. 30-246)
B.12 Holyoke Power and Electric Company
B.12.1 Charter 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. 30-246)
B.13 Northeast Utilities Service Company
B.13.1 Charter of Northeast Utilities Service Company, as
amended to February 20, 1974. (Exhibit B.16, 1983
NU Form U5S, File No. 30-246)
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. 30-246)
E-4
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. 30-246)
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. 30-246)
B.14 Northeast Nuclear Energy Company
B.14.1 Charter 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. 30-246)
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. 30-246)
B.14.4 By-Laws of Northeast Nuclear Energy Company, as
amended to February 11, 1998. (Exhibit B.17.4,
1997 NU Form U5S, File No. 30-246)
B.14.5 By-Laws of Northeast Nuclear Energy Company, as
amended to June 1, 2000. (Exhibit B.14.5, 2000 NU
Form U5S, File No. 30-246)
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. 30-246)
B.15.2 By-Laws of NU Enterprises, Inc. dated January 4,
1999. (Exhibit B.15.2, 1999 NU Form U5S, File No.
30-246)
B.16.3 By-Laws of NU Enterprises, Inc., as amended to
June 1, 2000. (Exhibit B.16.3, 2000 NU Form U5S,
File No. 30-246)
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)
E-5
B.16.2 By-Laws of HEC Inc., as amended, June 30, 1999.
(Exhibit B.16.2, 1999 NU Form U5S, File No.
30-246)
B.17 Select Energy Contracting, Inc. F/K/A HEC International
Corporation
B.17.1 Articles of Organization of Select Energy
Contracting, Inc. F/K/A HEC International
Corporation dated October 12, 1994. (Exhibit
B.19.1, 1994 NU Form U5S, File No. 30-246)
B.17.2 Amendment to Articles of Organization of Select
Energy Contracting, Inc. F/K/A HEC International
Corporation, dated July 8, 1999 (Exhibit B.17.2,
1999 NU Form U5S, File No. 30-246)
B.17.3 By-Laws of Select Energy Contracting, Inc. F/K/A
HEC International Corporation dated June 30, 1999.
(Exhibit B.17.3, 1999 NU Form U5S, File No.
30-246)
B.18 HEC Energy Consulting Canada Inc.
B.18.1 Articles of Incorporation of HEC Energy Consulting
Canada Inc. dated October 24, 1994. (Exhibit
B.20.1, 1994 NU Form U5S, File No. 30-246)
B.18.2 By-Laws of HEC Energy Consulting Canada Inc. dated
October 24, 1994. (Exhibit B.20.2, 1994 NU Form
U5S, File No. 30-246)
B.19 HEC/Tobyhanna Energy Project, Inc.
B.19.1 Articles of Organization of HEC/Tobyhanna Energy
Project, Inc. dated September 28, 1999. (Exhibit
B.19.1, 1999 NU Form U5S, File No. 30-246)
B.19.2 By-Laws of HEC/Tobyhanna Energy Project, Inc.,
dated September 28, 1999. (Exhibit B.19.2, 1999 NU
Form U5S, File No. 30-246)
B.20 Reeds Ferry Supply Co., Inc.
B.20.1 Articles of Agreement of Reeds Ferry Supply Co.,
Inc., dated June 25, 1964. (Exhibit B.20.1, 1999
NU Form U5S, File No. 30-246)
B.20.2 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. 30-246)
E-6
B.21 North Atlantic Energy Service Corporation
B.21.1 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.21.2 By-Laws of North Atlantic Energy Service
Corporation, as amended to November 8, 1993.
(Exhibit B.19.2, 1993 NU Form U5S, File No.
30-246)
B.21.3 By-Laws of North Atlantic Energy Service
Corporation, as amended to June 1, 2000. (Exhibit
B.21.3, 2000 NU Form U5S, File No. 30-246)
B.22 Connecticut Yankee Atomic Power Company
B.22.1 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. 30-246)
B.22.2 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. 30-246)
B.22.3 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. 30-246)
B.22.4 By-Laws of Connecticut Yankee Atomic Power
Company, as amended to March 31, 1999. (Exhibit
B.22.4, 1998 NU U5S, File No. 30-246)
B.23 Properties, Inc.
B.23.1 Articles of Agreement of Properties, Inc. as
amended to June 1, 1983. (Exhibit B.21.1, 1993 NU
Form U5S, File No. 30-246)
B.23.2 By-Laws of Properties, Inc., amended and restated
as of February 7, 1996. (Exhibit B.23.2, 1995 NU
Form U5S, File No. 30-246)
B.24 Charter Oak Energy, Inc.
B.24.1 Certificate of Incorporation of Charter Oak
Energy, Inc., dated September 28, 1988. (Exhibit
B.16, 1989 NU Form U5S, File No. 30-246)
E-7
B.24.2 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. 30-246)
B.24.3 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. 30-246)
B.24.4 By-Laws of Charter Oak Energy, Inc., as amended to
January 1, 1997. (Exhibit B.25.3, 1996 NU Form
U5S, File No. 30-246)
B.24.5 By-Laws of Charter Oak Energy, Inc., as amended to
June 1, 2000. (Exhibit B.24.5, 2000 NU Form U5S,
File No. 30-246)
B.25 COE Development Corporation
B.25.1 Certificate of Incorporation of COE Development
Corporation dated November 6, 1992. (Exhibit
B.26.1, 1993 NU Form U5S, File No. 30-246)
B.25.2 Certificate of Amendment to Certificate of
Incorporation of COE Development Corporation,
dated December 26, 1996. (Exhibit B.26.2, 1996 NU
Form U5S, File No. 30-246)
B.25.3 Certificate of Amendment to Certificate of
Incorporation of COE Development Corporation,
dated April 27, 1998. (Exhibit B.27.3, 1997 NU
Form U5S File No. 30-246)
B.25.4 By-Laws of COE Development Corporation, as amended
to January 1, 1997. (Exhibit B.26.4, 1996 NU Form
U5S, File No. 30-246)
B.25.5 By-Laws of COE Development Corporation, as amended
to June 1, 2000. (Exhibit B.25.5, 2000 NU Form
U5S, File No. 30-246)
B.26 COE Argentina II Corp.
B.26.1 Certificate of Incorporation of COE Argentina II
Corp. dated March 14, 1994. (Exhibit B.27.1, 1994
NU Form U5S, File No. 30-246)
B.26.2 Certificate of Amendment to Certificate of
Incorporation of COE Argentina II Corp., dated
December 26, 1996. (Exhibit B.27.2, 1996 NU Form
U5S, File No. 30-246)
E-8
B.26.3 Certificate of Amendment to Certificate of
Incorporation of COE Argentina II Corp., dated
April 27, 1998. (Exhibit B.27.3, 1997 NU Form U5S,
File No. 30-246)
B.26.4 By-Laws of COE Argentina II Corp., as amended to
January 1, 1997. (Exhibit B.27.4, 1996 NU Form
U5S, File No. 30-246)
B.26.5 By-Laws of COE Argentina II Corp., as amended to
June 1, 2000. (Exhibit B.26.5, 2000 NU Form U5S,
File No. 30-246)
B.27 COE Ave Fenix Corporation
B.27.1 Certificate of Incorporation of COE Ave Fenix
Corporation dated May 19, 1995. (Exhibit B.28.1,
1995 NU Form U5S, File No. 30-246)
B.27.2 Certificate of Amendment to Certificate of
Incorporation of COE Ave Fenix Corporation, dated
December 26, 1996. (Exhibit B.28.2, 1996 NU Form
U5S, File No. 30-246)
B.27.3 Certificate of Amendment to Certificate of
Incorporation of COE Ave Fenix Corporation, dated
April 27, 1998. (Exhibit B.28.3, 1997 NU Form U5S,
File No. 30-246)
B.27.4 By-Laws of COE Ave Fenix Corporation, as amended
to January 1, 1997. (Exhibit B.28.4, 1996 NU Form
U5S, File No. 30-246)
B.27.5 By-Laws of COE Ave Fenix Corporation, as amended
to June 1, 2000. (Exhibit B.27.5, 2000 NU Form
U5S, File No. 30-246)
B.28 New England Hydro-Transmission Corporation
B.28.1 Articles of Incorporation, (Exhibit B.8a, 1986
NEES U5S, File No. 30-33); Articles of Amendment
of New England Hydro-Transmission Corporation
dated January 18, 1989, (Exhibit B.10a, 1988 NEES
U5S, File No. 30-33).
B.28.2 By-Laws of New England Hydro-Transmission
Corporation dated March 17, 1998. (Exhibit B.
16.b, 1998 NEES U5S, File No. 30-33)
E-9
B.29 New England Hydro-Transmission Electric Company
B.29.1 Restated Articles of Organization of New England
Hydro-Transmission Electric Company dated January
13, 1989. (Exhibit B.11a, 1988 NEES U5S, File No.
30-33)
B.29.2 By-Laws of New England Hydro-Transmission Electric
Company dated March 17, 1998. (Exhibit B.17.b,
1998 NEES U5S File No. 30-33)
B.30 Amended and Restated Limited Partnership Agreement (CL&P
Capital, L.P.) among CL&P, NUSCO, and the persons who became
limited partners of CL&P Capital, L.P. in accordance with the
provisions thereof dated as of January 23, 1995 (MIPS).
(Exhibit A.1, File No. 70-8451)
B.31 ERI/HEC EFA-Med, LLC
B.31.1 Certificate of Formation of ERI/HEC EFA-Med, LLC,
dated September 15, 2000. (Exhibit B.31.1, 2000 NU
Form U5S, File No. 30-246)
B.31.2 Operating Agreement of ERI/HEC EFA-Med, LLC, dated
September 22, 2000. (Exhibit B.31.2, 2000 NU Form
U5S, File No. 30-246)
B.32 Mode 1 Communications, Inc.
B.32.1 Certificate of Incorporation of Mode 1
Communications, Inc. dated March 26, 1996.
(Exhibit B.34.1, 1996 NU Form U5S, File No. 30-
246)
B.32.2 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.
30-246)
B.32.3 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. 30-246)
B.32.4 By-Laws of Mode 1 Communications, Inc., as amended
to January 1, 1997. (Exhibit B.34.4, 1996 NU Form
U5S, File No. 30-246)
B.33 Select Energy, Inc.
B.33.1 Certificate of Incorporation of Select Energy,
Inc. dated September 26, 1996. (Exhibit B.40.1,
1996 NU Form U5S, File No. 30-246)
E-10
B.33.2 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. 30-246)
B.33.3 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. 30-246)
B.33.4 By-Laws of Select Energy, Inc., as amended to May
12, 1997. (Exhibit B.40.4, 1997 NU Form U5S, File
No. 30-246)
B.33.5 By-Laws of Select Energy, Inc., as amended to June
1, 2000. (Exhibit B.33.5, 2000 NU Form U5S, File
No. 30-246)
B.34 Northeast Generation Company
B.34.1 Certificate of Incorporation of Northeast
Generation Company, dated December 28, 1998.
(Exhibit B.34.1, 1999 NU Form U5S, File No.
30-246)
B.34.2 By-Laws of Northeast Generation Company, dated
January 4, 1999. (Exhibit B.34.2, 1999 NU Form
U5S, File No. 30-246)
B.34.3 By-Laws of Northeast Generation Company, as
amended to June 1, 2000. (Exhibit B.34.3, 2000 NU
Form U5S, File No. 30-246)
B.35 Northeast Generation Services Company
B.35.1 Certificate of Incorporation of Northeast
Generation Services Company, dated December 28,
1998. (Exhibit B.35.1, 1999 NU Form U5S, File No.
30-246)
B.35.2 By-Laws of Northeast Generation Service Company,
dated January 4, 1999. (Exhibit B.35.2, 1999 NU
Form U5S, File No. 30-246)
B.35.3 By-Laws of Northeast Generation Services Company,
as amended to June 1, 2000. (Exhibit B.35.3, 2000
NU Form U5S, File No. 30-246)
B.36 Select Energy Portland Pipeline, Inc.
B.36.1 Certificate of Incorporation of Select Energy
Portland Pipeline, Inc., dated March 15, 1999.
(Exhibit B.36.1, 1999 NU Form U5S, File No.
30-246)
E-11
B.36.2 By-Laws of Select Energy Portland Pipeline, Inc.,
dated March 17, 1999. (Exhibit B.36.1, 1999 NU
Form U5S, File No. 30-246)
B.36.3 By-Laws of Select Energy Portland Pipeline, Inc.,
as amended to June 1, 2000. (Exhibit B.36.3, 2000
NU Form U5S, File No. 30-246)
B.37 CL&P Receivables Corporation
B.37.1 Certificate of Incorporation of CL&P Receivables
Corporation, dated September 5, 1997. (Exhibit
B.41.1, 1997 NU Form U5S, File No. 30-246)
B.37.2 Bylaws of CL&P Receivables Corporation, dated
September 12, 1997. (Exhibit B.41.2, 1997 NU Form
U5S, File No. 30-246)
B.38 Yankee Energy System, Inc.
B.38.1 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. 30-246)
B.38.2 Certificate of Merger of Yankee Energy System,
Inc. with and Into NU Acquisition Corp., dated
March 1, 2000. (Exhibit B.38.2, 2000 NU Form U5S,
File No. 30-246)
B.38.2.1 Agreement and Plan of Merger between
Yankee Energy System, Inc. and
Northeast Utilities, dated as of June
14, 1999. (Exhibit 1, NU Form 8-K
dated June 14, 1999, File No. 1-5324)
B.38.3 By-Laws of Yankee Energy System, Inc., as amended
to March 1,2000. (Exhibit B.38.3, 2000 NU Form
U5S, File No. 30-246)
B.39 NorConn Properties, Inc.
B.39.1 Certificate of Incorporation of NorConn
Properties, Inc., dated May 10, 1988. (Exhibit
B.39.1, 2000 NU Form U5S, File No. 30-246)
B.39.2 By-Laws of NorConn Properties, Inc., as in effect
on March, 1, 2000. (Exhibit B.39.2, 2000 NU Form
U5S, File No. 30-246)
E-12
B.40 R. M. Services, Inc.
B.40.1 Certificate of Incorporation of R. M. Services,
Inc. dated November 17, 1994. (Exhibit B.40.1,
2000 NU Form U5S, File No. 30-246)
* B.40.2 Certificate of Amendment of Certificate of
Incorporation of R. M. Services, Inc., dated June
28, 2001.
B.40.3 By-Laws of R. M. Services, Inc., as in effect on
March 1, 2000. (Exhibit B.40.2, 2000 NU Form U5S,
File No. 30-246)
B.41 Yankee Energy Financial Services Company
B.41.1 Certificate of Incorporation of Yankee Energy
Financial Services Company, dated September 1,
1992. (Exhibit B.41.1, 2000 NU Form U5S, File No.
30-246)
B.41.2 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. 30-246)
B.42 Yankee Energy Services Company
B.42.1 Certificate of Incorporation of Yankee Energy
Services Company, dated June 30, 1993. (Exhibit
B.42.1, 2000 NU Form U5S, File No. 30-246)
B.42.2 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. 30-246)
B.42.3 By-Laws of Yankee Energy Services Company, as in
effect on March 1, 2000. (Exhibit B.42.3, 2000 NU
Form U5S, File No. 30-246)
B.43 Yankee Gas Services Company
B.43.1 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. 30-246)
B.43.2 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. 30-246)
E-13
B.43.3 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. 30-246)
B.43.4 By-Laws of Yankee Gas Services Company, as in
effect on March 1, 2000. (Exhibit B.43.4, 2000 NU
Form U5S, File No. 30-246)
B.44 Housatonic Corporation
B.44.1 Certificate of Incorporation of Housatonic
Corporation, dated October 16, 1987. (Exhibit
B.44.1, 2000 NU Form U5S, File No. 30-246)
B.44.2 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. 30-246)
B.44.3 By-Laws of Housatonic Corporation, as in effect on
March 1, 2000. (Exhibit B.44.3, 2000 NU Form U5S,
File No. 30-246)
B.45 Yankee Energy Marketing Company
B.45.1 Certificate of Incorporation of Yankee Energy
Marketing Company, dated October 10, 1995.
(Exhibit B.45.1, 2000 NU Form U5S, File No.
30-246)
B.45.2 By-Laws of Yankee Energy Marketing Company, as in
effect on March 1, 2000. (Exhibit B.45.2, 2000 NU
Form U5S, File No. 30-246)
B.46 E. S. Boulos Company
* B.46.1 Certificate of Incorporation of E. S. Boulos
Company, F/K/A NGS Acquisition Sub, Inc., dated
January 10, 2001.
* B.46.2 Certificate of Amendment of Incorporation of E. S.
Boulos Company dated January 22, 2001.
* B.46.3 By-Laws of E. S. Boulos Company, as amended to
January 22, 2001.
B.47 NGS Mechanical, Inc.
* B.47.1 Certificate of Incorporation of NGS Mechanical,
Inc., dated January 24, 2001.
* B.47.2 By-Laws of NGS Mechanical, Inc. dated as of
January 25, 2001.
E-14
B.48 Select Energy New York, Inc.
* B.48.1 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.
* B.48.2 Certificate of Amendment of Incorporation of
Select Energy New York, Inc., dated August 21,
1998.
* B.48.3 Certificate of Amendment of Incorporation of
Select Energy New York, Inc., dated November 21,
2001.
* B.48.4 By-Laws of Select Energy New York, Inc., as in
effect on November 30, 2001.
B.49 CL&P Funding LLC
B.49.1 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)
B.49.2 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 3.1, CL&P Funding LLC Form S-3,
Amendment No. 2, dated March 26, 2001, File No.
333-53866)
B.50 PSNH Funding LLC
B.50.1 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.50.2 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.51 PSNH Funding LLC 2
B.51.1 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)
E-15
B.51.2 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.52 WMECO Funding LLC
B.52.1 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.52.2 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)
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 Series B Notes. (Exhibit C.1.3, 1991
NU Form U5S, File No. 30-246)
C.1.4 Revolving Credit Agreement among NU and the Banks
named therein, dated November 16, 2001 (Exhibit to
35-CERT filed November 28, 2001, File No. 70-9755)
C.1.5 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 10, 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 (Exhibit A-4 to 35 CERT filed April 10, 2002,
File No. 70-9755)
E-16
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)
Supplemental Indentures to the Composite May 1, 1921 Indenture
of Mortgage and Deed of Trust between CL&P and Bankers Trust
Company, dated as of:
C.2.2 June 1, 1994. (Exhibit 4.2.15, 1994 NU Form 10-K,
File No. 1-5324)
C.2.3 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)
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)
E-17
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.2.10 Revolving Credit Agreement among WMECO, CL&P, PSNH
and Yankee and the Banks named therein, dated
November 16, 2001 (Exhibit (ii), 35 CERT filed
November 28, 2001, File No. 70-9755)
C.2.11 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.2.12 Amendment No. 1 to the Purchase and Contribution
Agreement between CL&P and CRC dated as of March
30, 2001 (Exhibit 10.1.1 2001 NU 10-Q for the
Quarter Ended September 30, 2001 (File No. 1-5324)
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)
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)
E-18
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 Revolving Credit Agreement among WMECO, CL&P, PSNH
and Yankee and the Banks named therein, dated
November 16, 2001 (Exhibit (ii), 35 CERT filed
November 28, 2001, File No. 70-9755)
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 Revolving Credit Agreement among WMECO, CL&P, PSNH
and Yankee and the Banks named therein, dated
November 16, 2001 (Exhibit (ii), 35 CERT filed
November 28, 2001, File No. l 70-9755)
E-19
C.5 North Atlantic Energy Corporation
C.5.1 Term Credit Agreement dated as of November 8,
2001. (Exhibit to 35 CERT filed November 21, 2001,
File No. 70-9755)
C.6 Northeast Generation Company
C.6.1 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.6.1.1 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.7 The Rocky River Realty Company
C.7.1 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)
C.7.2 Amendment to Note Agreement, dated September 26,
1997. (Exhibit 10.3.1, 1997 NU Form 10-K, File No.
1-5324)
C.7.3 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.7.4 Extension of Note Guaranty, dated September 26,
1997. (Exhibit 10.31.2.1, 1997 NU Form 10-K, File
No. 1-5324)
C.7.5 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
E-20
to April 14, 1992, Note Agreement. (Exhibit
10.52.2, 1992 NU Form 10-K, File No. 1-5324)
C.7.6 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.7.7 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.7.8 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.8 CL&P Receivables Corporation
C.8.1 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.8.1.1 Amendment No. 1 to the Purchase and
Contribution Agreement between CL&P
and CRC dated as of March 30, 2001
(Exhibit 10.1.1 2001 NU 10-Q for the
Quarter Ended September 30, 2001 (File
No. 1-5324)
C.9 HEC/Tobyhanna Energy Project, Inc.
C.9.1 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.10 Select Energy Services, Inc.
C.10.1 Assignment and Security Agreement with ABB Energy
Capital, LLC dated as of November 30, 1999
(Exhibit C.12.1, 2000 NU Form U5S, File No.
1-5324)
C.11 Yankee Gas Services Company
C.11.1 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)
E-21
C.11.2 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.11.3 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.11.4 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.11.5 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.11.6 Fifth Supplemental Indenture, dated as of January
1, 1999, to Mortgage (Exhibit C.13.6, 2000 NU Form
U5S, File No. 1-5324)
C.11.7 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.11.7.1 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.11.8 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.11.9 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.11.10 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)
E-22
C.11.11 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.11.12 Revolving Credit Agreement among WMECO, CL&P, PSNH
and Yankee and the Banks named therein, dated
November 16, 2001 (Exhibit (ii), 35 CERT filed
November 28, 2001, File No. 70-9755)
C.13 NorConn Properties, Inc.
* C.13.1 Term Loan Agreement between NorConn Properties,
Inc. and Fleet National Bank of Connectifut dated
as of February 1, 1996
D. Tax Allocation Agreements
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.)
E-23
ITEM 10. EXHIBIT H
NORTHEAST GENERATION COMPANY
BALANCE SHEETS
At December 31, 2001 2000
-------- --------
(Thousands of Dollars)
ASSETS
Current Assets:
Cash and cash equivalents ........................... $ 35,217 $ 37,177
Notes receivable from affiliated companies .......... 9,900 --
Accounts receivable from affiliated companies ....... 10,642 11,419
Taxes receivable .................................... 4,217 --
Materials and supplies, at average cost ............. 1,793 1,935
Prepayments and other ............................... 392 1,626
-------- --------
62,161 52,157
-------- --------
Property, Plant and Equipment:
Competitive energy .................................. 265,309 264,855
Less: Accumulated provision for depreciation ..... 150,294 147,216
-------- --------
115,015 117,639
Construction work in progress ....................... 21,055 8,094
-------- --------
136,070 125,733
-------- --------
Deferred Debits and Other Assets:
Accumulated deferred income taxes ................... 256,049 278,320
Other ............................................... 10,688 4,851
-------- --------
266,737 283,171
-------- --------
Total Assets .......................................... $464,968 $461,061
======== ========
The accompanying notes are an integral part of these financial statements.
E-24
ITEM 10. EXHIBIT H
NORTHEAST GENERATION COMPANY
BALANCE SHEETS
At December 31, 2001 2000
--------- ---------
(Thousands of Dollars)
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes payable to banks .............................. $ -- $402,377
Long-term debt - current portion .................... 24,000 --
Accounts payable .................................... 1,759 1,771
Accounts payable to affiliated companies ............ 1,297 732
Accrued taxes ....................................... 794 5,840
Accrued interest .................................... 7,029 1,893
Other ............................................... 1,138 813
--------- --------
36,017 413,426
--------- --------
Capitalization:
Long-Term Debt ...................................... 416,000 --
--------- --------
Common Stockholder's Equity:
Common stock, $1 par value - authorized
20,000 shares; 6 shares outstanding
in 2001 and 100 shares outstanding in 2000 ....... -- --
Capital surplus, paid in .......................... 3,039 24,375
Retained earnings ................................. 11,853 23,260
Accumulated other comprehensive loss .............. (1,941) --
--------- --------
Common Stockholder's Equity ......................... 12,951 47,635
--------- --------
Total Capitalization .................................. 428,951 47,635
--------- --------
Commitments and Contingencies (Note 6)
Total Liabilities and Capitalization .................. $ 464,968 $461,061
========= ========
The accompanying notes are an integral part of these financial statements.
E-25
ITEM 10. EXHIBIT H
NORTHEAST GENERATION COMPANY
STATEMENTS OF INCOME
For the Years Ended December 31, 2001 2000 1999
---- ---- ----
(Thousands of Dollars)
Operating Revenues ................................................ $ 129,681 $ 108,473 $ --
--------- --------- ---------
Operating Expenses:
Operation -
Other ........................................................ 15,426 11,855 5,229
Maintenance ..................................................... 6,902 9,092 3
Depreciation .................................................... 3,040 2,417 --
Taxes other than income taxes ................................... 7,375 5,690 74
--------- --------- ---------
Total operating expenses ...................................... 32,743 29,054 5,306
--------- --------- ---------
Operating Income/(Loss) ........................................... 96,938 79,419 (5,306)
Other Income, Net ................................................. 1,113 1,061 --
--------- --------- ---------
Income/(Loss) Before Interest and Income Tax Expense/(Benefit) .... 98,051 80,480 (5,306)
--------- --------- ---------
Interest Expense:
Interest on long-term debt ...................................... 7,396 -- --
Other interest .................................................. 19,966 36,542 1
--------- --------- ---------
Interest expense, net ......................................... 27,362 36,542 1
--------- --------- ---------
Income/(Loss) Before Income Tax Expense/(Benefit) ................. 70,689 43,938 (5,307)
Income Tax Expense/(Benefit) ...................................... 28,432 17,522 (2,151)
--------- --------- ---------
Net Income/(Loss) ................................................. $ 42,257 $ 26,416 $ (3,156)
========= ========= =========
STATEMENTS OF COMPREHENSIVE INCOME
Net Income/(Loss) ................................................. $ 42,257 $ 26,416 $ (3,156)
--------- --------- ---------
Other comprehensive loss, net of tax:
Qualified cash flow hedging investments ......................... (1,941) -- --
--------- --------- ---------
Comprehensive Income/(Loss) ....................................... $ 40,316 $ 26,416 $ (3,156)
========= ========= =========
The accompanying notes are an integral part of these financial statements.
E-26
ITEM 10. EXHIBIT H
NORTHEAST GENERATION COMPANY
STATEMENTS OF COMMON STOCKHOLDER'S EQUITY
Accumulated
Capital Other
Common Surplus, Retained Comprehensive
Stock Paid In Earnings Loss Total
---------- ---------- ---------- ---------- ----------
(Thousands of Dollars)
Balance at January 1, 1999 ............. $ -- $ -- $ -- $ -- $ --
Net loss for 1999 .................. (3,156) (3,156)
Capital contribution
from Northeast Utilities ........... 6,500 6,500
Other ............................... 10 10
---------- ---------- ---------- ---------- ----------
Balance at December 31, 1999 ........... -- 6,510 (3,156) -- 3,354
Net income for 2000 ................ 26,416 26,416
Capital contribution
from Northeast Utilities ........... 463,000 463,000
Excess paid over carrying value
of assets transferred (Note 5) ..... (445,135) (445,135)
---------- ---------- ---------- ---------- ----------
Balance at December 31, 2000 ........... -- 24,375 23,260 -- 47,635
Net income for 2001 ................ 42,257 42,257
Cash dividends on common stock ...... (53,664) (53,664)
Repurchase of common stock .......... -- (21,336) (21,336)
Other comprehensive loss ............ (1,941) (1,941)
---------- ---------- ---------- ---------- ----------
Balance at December 31, 2001 ........... $ -- $ 3,039 $ 11,853 $ (1,941) $ 12,951
========== ========== ========== ========== ==========
The accompanying notes are an integral part of these financial statements.
E-27
ITEM 10. EXHIBIT H
NORTHEAST GENERATION COMPANY
STATEMENTS OF CASH FLOWS
(Thousands of Dollars)
2001 2000
For the Years Ended December 31, --------- ---------
Operating Activities:
Net income.................................................. $ 42,257 $ 26,416
Adjustments to reconcile to net cash flows
provided by/(used in) operating activities:
Depreciation ............................................. 3,040 2,417
Deferred income taxes .................................... 23,565 19,245
Net other (uses)/sources of cash ......................... (9,035) 1,533
Changes in working capital:
Accounts receivable from affiliated companies ............ 777 (11,419)
Materials and supplies ................................... 142 (62)
Accounts payable ......................................... 553 (780)
Accrued taxes ............................................ (5,046) 5,840
Other working capital (excludes cash) .................... 2,478 (202)
--------- ---------
Net cash flows provided by operating activities .............. 58,731 42,988
--------- ---------
Investing Activities:
Investments in competitive energy assets ................... (13,414) (1,394)
Investment in NU system Money Pool ......................... (9,900) --
Net cash payment for the transfer of assets ................ -- (869,794)
--------- ---------
Net cash flows used in investing activities .................. (23,314) (871,188)
--------- ---------
Financing Activities:
Repurchase of common stock ................................. (21,336) --
Issuance of long-term debt ................................. 440,000 --
Net (decrease)/increase in short-term debt ................. (402,377) 402,377
Cash dividends on common shares ............................ (53,664) --
Capital contributions from Northeast Utilities ............. -- 463,000
--------- ---------
Net cash flows (used in)/provided by financing activities .... (37,377) 865,377
--------- ---------
Net (decrease)/increase in cash and cash equivalents ......... (1,960) 37,177
Cash and cash equivalents - beginning of year ................ 37,177 --
--------- ---------
Cash and cash equivalents - end of year ...................... $ 35,217 $ 37,177
========= =========
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized ....................... $ 22,726 $ 29,286
========= =========
Income taxes ............................................... $ 12,901 $ (7,725)
========= =========
The accompanying notes are an integral part of these financial statements.
E-28