Commission File Number: 30-246
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
FORM U5S
ANNUAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2003
Filed pursuant to the Public Utility Holding Company Act of 1935 by
NORTHEAST UTILITIES
174 Brush Hill Avenue, West Springfield, Massachusetts 01090-0010
(Corporate Address)
Selden Street, Berlin, Connecticut 06037-1616
(Principal Headquarters)
NORTHEAST UTILITIES
FORM U5S ANNUAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2003
TABLE OF CONTENTS
-----------------
ITEM PAGE
---- ----
1. System Companies and Investments Therein.............................. 2
2. Acquisitions or Sales of Utility Assets............................... 8
3. Issue, Sale, Pledge, Guarantee, or Assumption of
System Securities..................................................... 9
4. Acquisition, Redemption or Retirement of System
Securities............................................................ 10
5. Investments in Securities of Nonsystem
Companies............................................................. 10
6. Officers and Directors................................................ 12
7. Contributions and Public Relations.................................... 44
8. Service, Sales and Construction Contracts............................. 44
9. Wholesale Generators and Foreign Utility
Companies............................................................. 45
10. Financial Statements and Exhibits..................................... 48
Independent Auditors' Consent......................................... F-1
Signature............................................................. F-5
1
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2003
Number of % of
Tier Name of Company (Company Abbreviation) Shares Owned Voting Power
---- -------------------------------------- ------------ ------------
Northeast Utilities (NU) (a)
1 The Connecticut Light and Power Company (CL&P) (b) (d) 6,035,205 100%
Unsecured Debt (Note B) N/A N/A
2 CL&P Receivables Corporation (CRC) 100 100%
2 CL&P Funding LLC - 100%
1 Public Service Company of New Hampshire (PSNH) (b) 301 100%
Unsecured Debt (Note B) N/A N/A
2 Properties, Inc. 200 100%
2 PSNH Funding LLC - 100%
2 PSNH Funding LLC 2 - 100%
1 Western Massachusetts Electric Company (WMECO) (b) 434,653 100%
Unsecured Debt (Note B) N/A N/A
2 WMECO Funding LLC - 100%
1 North Atlantic Energy Corporation (NAEC) 6 100%
1 North Atlantic Energy Service Corporation (NAESCO)* 1,000 100%
1 Holyoke Water Power Company (HWP) 480,000 100%
Unsecured Debt (Note B) N/A N/A
2 Holyoke Power and Electric Company (HP&E) 4,850 100%
1 Yankee Energy System, Inc. (YES) 1,000 100%
2 Yankee Gas Services Company (Yankee Gas) 1,000 100%
Unsecured Debt (Note B) N/A N/A
2 Norconn Properties, Inc. (Norconn) 100 100%
Unsecured Debt (Note B) N/A N/A
2 Yankee Energy Services Company (YESCO) 200 100%
2 Yankee Energy Financial Services Company (YEFSCO) 200 100%
Unsecured Debt (Note B) N/A N/A
2 Housatonic Corporation* 100 100%
2 R.M. Services, Inc. (RMS) 10,000 (f) 10%
1 Northeast Utilities Service Company (NUSCO) 1 100%
1 NU Enterprises, Inc. (NUEI) 89 100%
2 Northeast Generation Company (NGC) 6 100%
2 Northeast Generation Services Company (NGS) 100 100%
Unsecured Debt (Note B) N/A N/A
3 Greenport Power LLC (Greenport) (e) N/A 50%
3 E.S. Boulos Company (Boulos) 100 100%
3 NGS Mechanical, Inc. 100 100%
3 Woods Electrical Co., Inc. 100 100%
Unsecured Debt (Note B) N/A N/A
2 Mode 1 Communications, Inc. 100 100%
2 Woods Network Services, Inc. 100 100%
Unsecured Debt (Note B) N/A N/A
2 Select Energy, Inc. (Select Energy) 100 100%
Unsecured Debt (Note B) N/A N/A
3 Select Energy New York, Inc. (SENY) 10,000 100%
Unsecured Debt (Note B) N/A N/A
2 Select Energy Services, Inc. (SESI) 100 100%
Unsecured Debt (Note B) N/A N/A
3 Select Energy Contracting, Inc. 100 100%
3 Reeds Ferry Supply Co., Inc. 100 100%
3 HEC/Tobyhanna Energy Project, Inc. 100 100%
3 HEC/CJTS Energy Center LLC - 100%
1 The Quinnehtuk Company 3,500 100%
Unsecured Debt (Note B) N/A N/A
1 The Rocky River Realty Company (RRR) 100 100%
Unsecured Debt (Note B) N/A N/A
* Inactive.
2
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2003
Issuer Owner's
Book Value Book Value
(000's) (000's) Type of Business
------- ------- ----------------
Registered Holding Company
$698,427 $698,427 Electric Utility
91,125 91,125
235,063 235,063 Special Purpose Entity (SPE)
7,193 7,193 SPE
380,260 380,260 Electric Utility
48,900 48,900
6,412 6,412 Real Estate (c)
3,126 3,126 SPE
251 251 SPE
152,003 152,003 Electric Utility
31,400 31,400
776 776 SPE
5,179 5,179 Electric Utility
1,635 1,635 Service Company*
4,755 4,755 Electric Utility
11,000 11,000
199 199 Electric Utility
525,134 525,134 Intermediate Holding Company
508,757 508,757 Gas Utility
72,500 72,500
439 439 Real Estate (c)
1,100 1,100
4,691 4,691 Rule 58 Energy-Related Company
1,551 1,551 Financial Services
3,600 3,600
(191) (191) *
4,942 4,942 Receivables Services
1,778 1,778 Service Company
573,616 573,616 Intermediate Holding Company
438,449 438,449 Exempt Wholesale Generator
13,299 13,299 Rule 58 Energy-Related Company
15,500 15,500
N/A N/A Rule 58 Energy-Related Company
13,022 13,022 Rule 58 Energy-Related Company
8 8 Rule 58 Energy-Related Company
4,483 4,483 Rule 58 Energy-Related Company
5,250 5,250
14,651 14,651 Exempt Telecommunications Company
3,060 3,060 Exempt Telecommunications Company
4,150 4,150
42,202 42,202 Rule 58 Energy-Related Company
150,000 150,000
37,999 37,999 Rule 58 Energy-Related Company
14,699 14,699
35,535 35,535 Energy Services Company
1,250 1,250
17,582 17,582 Rule 58 Energy-Related Company
(42) (42) Rule 58 Energy-Related Company
902 902 SPE, Rule 58 Energy-Related Company
1 1 SPE, Rule 58 Energy-Related Company
(2,632) (2,632) Real Estate (c)
4,000 4,000
22,322 22,322 Real Estate (c)
21,500 21,500
3
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2003
(CONTINUED)
Number of % of
Tier Name of Company (Company Abbreviation) Shares Owned Voting Power
---- -------------------------------------- ------------ ------------
1 Northeast Nuclear Energy Company (NNECO)* 30 100%
1 Charter Oak Energy, Inc. (COE)* 100 100%
*Inactive.
4
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2003
(CONTINUED)
Issuer Owner's
Book Value Book Value
(000's) (000's) Type of Business
------- ------- ----------------
1,173 1,173 Service Company*
155 155 *
5
(a) For information regarding NU's investment in the hydro-transmission
companies see Note A to Item 1.
(b) For information regarding CL&P's, PSNH's and WMECO's investments in
regional nuclear generating companies see Note A to Item 1.
(c) Constructs, acquires or leases some of the property and facilities
used by one or more of NU's subsidiaries.
(d) CL&P has four inactive subsidiaries not listed in this table: The
Connecticut Steam Company, The Nutmeg Power Company, Electric Power
Incorporated and CL&P Capital L.P.
(e) Greenport is a limited liability company that was established to
enter into an engineering, procurement and construction agreement
with Global Common LLC for the performance of design, engineering,
procurement, construction and other services in connection with an
electrical generation facility construction project.
(f) Preferred stock.
6
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2003
(CONTINUED)
Note A: The following are CL&P's, PSNH's and WMECO's total investments in
regional nuclear generating companies and NU's investments in New
England Hydro-Transmission Electric Company, Inc. and New England
Hydro-Transmission Corporation:
No. of % Carrying
Common of Value
Shares Voting to
Name of Owner Name of Issuer Owned Power Owners
------------- -------------- ----- ----- ------
(000's)
The Connecticut Light and Power Company:
Connecticut Yankee Atomic Power Co. (a) 120,750 34.5% $16,460
Maine Yankee Atomic Power Co. (a) 34,716 12.0 5,303
Yankee Atomic Electric Co. (a) 1,879 24.5 -
Public Service Company of New Hampshire:
Connecticut Yankee Atomic Power Co. (a) 17,500 5.0 2,385
Maine Yankee Atomic Power Co. (a) 14,465 5.0 2,210
Yankee Atomic Electric Co. (a) 537 7.0 -
Western Massachusetts Electric Company:
Connecticut Yankee Atomic Power Co. (a) 33,250 9.5 4,533
Maine Yankee Atomic Power Co. (a) 8,679 3.0 1,326
Yankee Atomic Electric Co. (a) 537 7.0 -
Total System Investment:
Connecticut Yankee Atomic Power Co. (a) 171,500 49.0 23,378
Maine Yankee Atomic Power Co. (a) 57,860 20.0 8,839
Yankee Atomic Electric Co. (a) 2,953 38.5 -
Northeast Utilities:
New England Hydro-Transmission
Electric Company, Inc. 465,624 22.66 6,296
New England Hydro-Transmission Corp. 2,153 22.66 3,768
(a) Yankee Atomic Electric Co.'s, Connecticut Yankee Atomic Power Co.'s
and Maine Yankee Atomic Power Co.'s nuclear power plants were shut
down permanently on February 26, 1992, December 4, 1996, and August
6, 1997, respectively.
7
Note B: This table represents all system money pool borrowings and NU Parent
advances at December 31, 2003.
System Money Pool Principal Issuer Owner's
Name of Company and NU Parent Advances Amount Owed Book Value Book Value
--------------- ---------------------- ----------- ---------- ----------
(Thousands of Dollars)
CL&P 1% System Money Pool $ 91,125 $ 91,125 $ 91,125
PSNH 1% System Money Pool 48,900 48,900 48,900
WMECO 1% System Money Pool 31,400 31,400 31,400
HWP 1% System Money Pool 1,400 1,400 1,400
Variable Rate, Payable Upon Demand (a) 9,600 9,600 9,600
-------- -------- --------
11,000 11,000 11,000
-------- -------- --------
Yankee Gas 1% System Money Pool 67,500 67,500 67,500
Non-interest bearing, Payable Upon Demand 5,000 5,000 5,000
-------- -------- --------
72,500 72,500 72,500
-------- -------- --------
Norconn 1% System Money Pool 1,100 1,100 1,100
YESCO 1% System Money Pool 3,600 3,600 3,600
NGS 1% System Money Pool 10,500 10,500 10,500
7.25% Payable Upon Demand 5,000 5,000 5,000
-------- -------- --------
15,500 15,500 15,500
-------- -------- --------
Woods Electrical Company 1% System Money Pool 800 800 800
7.25% Payable Upon Demand 4,450 4,450 4,450
-------- -------- --------
5,250 5,250 5,250
-------- -------- --------
Woods Network Services 7.25% Payable Upon Demand 4,150 4,150 4,150
Select Energy 4.10% Payable Upon Demand 150,000 150,000 150,000
SENY Variable Rate, Payable Upon Demand (a) 14,699 14,699 14,699
SESI 1% System Money Pool 1,250 1,250 1,250
The Quinnehtuk Company 1% System Money Pool 4,000 4,000 4,000
RRR 1% System Money Pool 16,500 16,500 16,500
7.25% Payable Upon Demand 5,000 5,000 5,000
-------- -------- --------
21,500 21,500 21,500
-------- -------- --------
(a) Interest rate is based on the 3-month Eurodollar plus applicable
margin. The interest rate at December 31, 2003 was 2.01 percent.
ITEM 2. ACQUISITIONS OR SALES OF UTILITY ASSETS
In 2003, WMECO sold the Chicopee Substation land and other assets to Chicopee
Municipal Lighting Plant for total consideration of $3,375,000.
In December 2003, PSNH sold a building and associated land to W&E Realty, LLC
for total consideration of $1,100,000.
8
ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE, OR ASSUMPTION OF SYSTEM SECURITIES
Descriptions of transactions involving the issue, sale, pledge, guarantee, or
assumption of system securities, including short-term borrowings, have been
filed pursuant to Rule 24, with the exception of certain NU guarantees incident
to the procurement of surety bonds and the issue of certain securities, as
described below.
In the ordinary course of their businesses, the NU subsidiary companies are
required to provide surety or performance bonds. From time to time, NU
guarantees the payment of such a bond by its subsidiary through the
indemnification of the surety company or agency which has agreed to provide the
bond. NU's guarantee of these surety bonds is exempt from the provisions of
Section 12(b) of the Public Utility Holding Company Act of 1935, pursuant to
Rule 45(b)(6) thereunder. As of December 31, 2003, NU had $41 million of such
guarantees outstanding, which was the highest amount outstanding during 2003.
At various times from January 1, 2003 through December 31, 2003, Select Energy
has issued debt to NU in reliance on Rule 52. The highest balance outstanding
through the year was $84 million on November 25, 2003 and the balance at the end
of 2003 was $65 million. The interest rate matched the interest rate charged to
NU under its revolving credit facility at the time of the issuance. At December
31, 2003, the weighted average interest rate was 2.19% (excluding utilization
fees). Also, Select Energy issued a note in the amount of $150 million to NU on
June 3, 2003 at a rate of 3.3% in reliance on the exemption in Rule 52.
In addition, information relating to the following issuances has been filed on
Form U-6B-2 in accordance with Rule 52:
1. On September 1, 2003, Western Massachusetts Electric Company, The Bank
of New York, as Trustee, and certain participating banks therein named,
entered into an indenture agreement to issue a series of 5.00% Senior
Notes, Series A, due 2013, in the aggregate principal amount of
$55,000,000. Form U-6B-2 for this transaction was filed on October 2,
2003.
2. On September 23, 2003, The Connecticut Light and Power Company, the
Connecticut Development Authority, the U.S. Bank National Association,
as trustee, and certain participating banks therein named, entered into
a Compensation and Multiannual Mode Agreement to convert the 1996
Series A Pollution Control Revenue Bonds to a multiannual interest
rate. The 1996 Series A Pollution Control Revenue Bonds were converted
from bearing interest at a weekly rate to bearing interest at a
multiannual rate of 3.35% for a 5 year period and that upon conversion,
the bonds would cease to be supported by the 2000 Standby Bond Purchase
Agreement. Form U-6B-2 for this transaction was filed on October 2,
2003.
9
ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES (1)
Name of Company
Acquiring,
Redeeming or Shares or
Name of Issuer and Title of Issue Retiring Principal Amount Consideration
--------------------------------- -------- ---------------- -------------
NU, Common Shares (2) NU 1,495,608 shares $20,537,000
NNECO, Common Stock (3) NNECO 1,497 shares $15,043,000
NGC, 4.998% Series A (2) NGC $27,000,000 $27,000,000
=========== ===========
NU Parent, 8.58% (2) NU Parent $18,000,000 $18,000,000
NU Parent, 8.38% Series B Note (2) NU Parent 5,000,000 5,000,000
----------- -----------
$23,000,000 $23,000,000
=========== ===========
RRR, 7.875% Installment Note (4)(5) RRR $ 913,000 $ 913,000
RRR, 6.620% Mortgage Note (2) RRR 95,846 95,846
RRR, 8.810% Series A Note (2)(6) RRR 1,285,253 1,285,253
----------- -----------
$ 2,294,099 $ 2,294,099
=========== ===========
YGS, First Mortgage Bonds - YGS $ 950,000 $ 950,000
10.07% Series A-E (2) =========== ===========
NorConn, 6.24% NorConn Properties, Inc. NorConn $ 1,400,000 $ 1,400,000
- Series A-B, (4) =========== ===========
(1) For acquisitions, redemptions or retirements of system securities, other
than preferred stock, all transactions exempt pursuant to Rule 42, except
as noted.
(2) Held for further disposition.
(3) Transaction pursuant to Commission Order, 35-27748, November 8, 2003.
(4) Extinguished.
(5) Unsecured.
(6) Secured.
ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES
Name of Owner (1) Name of Issuer Security Owned
----------------- -------------- ---------------
Western Massachusetts Massachusetts Mutual Note
Electric Company Life Insurance
(Insurance)
Public Service Company Amoskeag Industries, Inc. Stock
of New Hampshire (Manufacturer)
Northeast Utilities Connecticut Seed Limited
(Parent) Ventures, Ltc. Partnership
(Venture Capital) Interest
11 Subsidiaries (2) Various Stock,
Debentures
and Notes
10
ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES (CONTINUED)
Name of Owner (1) Name of Issuer Security Owned
----------------- -------------- ---------------
Mode 1 Communications, NEON Communications, Inc. Stock
Inc. (Telecommunications)
NU Enterprises, Inc. Acumentrics Corporation Stock
(Energy Related)
YESCO BMC Energy LLC Note
(Energy Related)
% of Carrying
Number of Voting Value to
Name of Owner Shares/Book Value Power Owners
------------- ----------------- ----- --------
(000's)
Western Massachusetts - - $ 190
Electric Company =======
Public Service Company 1,000 shares - $ 100
of New Hampshire =======
Northeast Utilities - - $ 13
(Parent) =======
11 Subsidiaries - - $ 154
=======
Mode 1 Communications, 1,786,622 shares 7% $ 9,861
Inc. =======
NU Enterprises, Inc. 500,000 shares 5% $ 7,500
=======
YESCO $4.7 million note - $ 4,036
=======
(1) Recorded at cost on owners' books. Partnership interests are accounted for
under the equity method of accounting.
(2) Comprised of CL&P, WMECO, HWP, The Quinnehtuk Company, NUSCO, NU Parent,
PSNH, Yankee, NUEI, SESI and RRR.
11
ITEM 6. OFFICERS AND DIRECTORS
Part I. As of December 31, 2003
1. The following is a list of the names and principal business addresses of
the individuals who are Trustees of Northeast Utilities (NU), but who are
not officers or directors of any other NU system company. The names of the
officers and directors of system companies appear in Section 2 below.
Mr. Richard H. Booth Elizabeth T. Kennan
Hartford Steam Boiler Inspection c/o Northeast Utilities
& Insurance Company P.O. Box 270
One State Street Hartford, CT 06141-0270
Hartford, CT 06102
Cotton Mather Cleveland Robert E. Patricelli
Mather Associates Women's Health USA, Inc.
75 Newport Road, Suite 208 and Evolution Benefits, Inc.
New London, NH 03257 22 Waterville Road
Avon, CT 06001
Sanford Cloud, Jr. John F. Swope
The National Conference for c/o Northeast Utilities
Community and Justice P.O. Box 270
475 Park Avenue South, 19th Floor Hartford, CT 06141-0270
New York, NY 10016
Mr. James F. Cordes
c/o Northeast Utilities
P.O. Box 270
Hartford, CT 06141-0270
E. Gail de Planque, Ph.D
c/o Northeast Utilities
P.O. Box 270
Hartford, CT 06141-0271
John G. Graham
c/o Northeast Utilities
P.O. Box 270
Hartford, CT 06141-0271
2. Following are the names of and positions held by the officers and
directors of all system companies (excluding the Trustees of Northeast
Utilities who are listed in Section 1 above).
12
NAMES OF SYSTEM COMPANIES WITH WHICH CONNECTED AS OF DECEMBER 31, 2003
NU NUSCO CL&P
Michael G. Morris (1) CHB, P, CEO, T CH, P, CEO, D
John H. Forsgren VC, EVP, CFO, T EVP, CFO, D EVP, CFO
Cheryl W. Grise PU PU, D CEO, D
Charles W. Shivery PC PC, D
Kerry J. Kuhlman (2)
Gary A. Long (3)
Leon J. Olivier P, COO, D
Dennis E. Welch
Christopher L. Beschler
David H. Boguslawski VP VP, D
Gregory B. Butler SVP, S, GC SVP, S, GC
Mark W. Fagan VP
Mary Jo Keating VP
Jeffrey R. Kotkin VP
Jean M. LaVecchia VP
Dana L. Louth VP
John M. MacDonald (3)
David R. McHale VP, TRS VP, TRS
Margaret L. Morton VP
James A. Muntz VP
William J. Nadeau (4)
Raymond P. Necci VP
Rodney O. Powell VP
Paul E. Ramsey (3)
John P. Stack VP, C VP, C VP, C
Lisa J. Thibdaue VP
Roger C. Zaklukiewicz VP
Robert A. Bersak (3)
O. Kay Comendul S
Randy A. Shoop TRS
Daniel P. Venora
Patricia A. Wood (2)
Cynthia A. Reames (5)
Christopher T. Burt (6)
Michelle Moezzi (6)
Murry K. Staples (7)
Gregory C. Picklesimer (7)
13
HP&E HWP PSNH
Michael G. Morris P, D P, D C, D
John H. Forsgren EVP, CFO, D
Cheryl W. Grise D D CEO, D
Charles W. Shivery
Kerry J. Kuhlman D D
Gary A. Long P, COO, D
Leon J. Olivier
Dennis E. Welch
Christopher L. Beschler
David H. Boguslawski VP, D
Gregory B. Butler
Mark W. Fagan
Mary Jo Keating
Jeffrey R. Kotkin
Jean M. LaVecchia
Dana L. Louth
John M. MacDonald VP
David R. McHale VP, TRS VP, TRS VP, TRS
Margaret L. Morton
James A. Muntz
William J. Nadeau VP VP
Raymond P. Necci
Rodney O. Powell
Paul E. Ramsey VP
John P. Stack VP, C VP, C VP, C
Lisa J. Thibdaue
Roger C. Zaklukiewicz VP VP VP
Robert A. Bersak
O. Kay Comendul S, CL S, CL S
Randy A. Shoop
Daniel P. Venora
Patricia A. Wood
Cynthia A. Reames
Christopher T. Burt
Michelle Moezzi
Murry K. Staples
Gregory C. Picklesimer
14
WMECO Mode 1 PI
Michael G. Morris C, D P, CEO, D
John H. Forsgren EVP, CFO, D D
Cheryl W. Grise CEO, D
Charles W. Shivery D
Kerry J. Kuhlman P, COO, D
Gary A. Long P, D
Leon J. Olivier
Dennis E. Welch
Christopher L. Beschler
David H. Boguslawski VP, D
Gregory B. Butler
Mark W. Fagan
Mary Jo Keating
Jeffrey R. Kotkin
Jean M. LaVecchia
Dana L. Louth
John M. MacDonald
David R. McHale VP, TRS VP, TRS VP, TRS
Margaret L. Morton
James A. Muntz
William J. Nadeau
Raymond P. Necci
Rodney O. Powell
Paul E. Ramsey VP, D
John P. Stack VP, C VP, C VP, C
Lisa J. Thibdaue
Roger C. Zaklukiewicz VP
Robert A. Bersak S, D
O. Kay Comendul S
Randy A. Shoop
Daniel P. Venora
Patricia A. Wood CL
Cynthia A. Reames
Christopher T. Burt
Michelle Moezzi
Murry K. Staples
Gregory C. Picklesimer
15
Quinn. RRR CRC
Michael G. Morris
John H. Forsgren
Cheryl W. Grise D D D
Charles W. Shivery
Kerry J. Kuhlman P, D
Gary A. Long
Leon J. Olivier P, D P, D
Dennis E. Welch
Christopher L. Beschler
David H. Boguslawski D D D
Gregory B. Butler
Mark W. Fagan
Mary Jo Keating
Jeffrey R. Kotkin
Jean M. LaVecchia
Dana L. Louth
John M. MacDonald
David R. McHale VP, TRS VP, TRS
Margaret L. Morton
James A. Muntz
William J. Nadeau
Raymond P. Necci
Rodney O. Powell
Paul E. Ramsey
John P. Stack VP, C VP, C VP, C
Lisa J. Thibdaue
Roger C. Zaklukiewicz VP VP
Robert A. Bersak
O. Kay Comendul S S
Randy A. Shoop TRS
Daniel P. Venora
Patricia A. Wood CL
Cynthia A. Reames D
Christopher T. Burt
Michelle Moezzi
Murry K. Staples
Gregory C. Picklesimer
16
Conn Steam Nutmeg Power EPI
Michael G. Morris
John H. Forsgren
Cheryl W. Grise D D D
Charles W. Shivery
Kerry J. Kuhlman
Gary A. Long
Leon J. Olivier
Dennis E. Welch
Christopher L. Beschler
David H. Boguslawski P P P
Gregory B. Butler
Mark W. Fagan
Mary Jo Keating
Jeffrey R. Kotkin
Jean M. LaVecchia
Dana L. Louth
John M. MacDonald
David R. McHale
Margaret L. Morton
James A. Muntz
William J. Nadeau
Raymond P. Necci
Rodney O. Powell
Paul E. Ramsey
John P. Stack VP, C VP, C VP, C
Lisa J. Thibdaue
Roger C. Zaklukiewicz
Robert A. Bersak
O. Kay Comendul S, D S, D S, D
Randy A. Shoop TRS TRS TRS
Daniel P. Venora D D D
Patricia A. Wood
Cynthia A. Reames
Christopher T. Burt
Michelle Moezzi
Murry K. Staples
Gregory C. Picklesimer
17
CL&P Cap. (8) YES YEFSCO
Michael G. Morris C, D C, D
John H. Forsgren EVP, CFO, D EVP, CFO, D
Cheryl W. Grise CEO, D CEO, D
Charles W. Shivery
Kerry J. Kuhlman
Gary A. Long
Leon J. Olivier
Dennis E. Welch P, COO, D P, COO, D
Christopher L. Beschler
David H. Boguslawski
Gregory B. Butler SVP, S, GC SVP, S, GC
Mark W. Fagan
Mary Jo Keating
Jeffery R. Kotkin
Jean M. LaVecchia
Dana L. Louth
John M. MacDonald
David R. McHale VP, TRS VP, TRS
Margaret L. Morton
James A. Muntz
William J. Nadeau
Raymond P. Necci
Rodney O. Powell
Paul E. Ramsey
John P. Stack VP, C VP, C
Lisa J. Thibdaue
Roger C. Zaklukiewicz
Robert A. Bersak
O. Kay Comendul
Randy A. Shoop
Daniel P. Venora
Patricia A. Wood
Cynthia A. Reames
Christopher T. Burt
Michelle Moezzi
Murry K. Staples
Gregory C. Picklesimer
18
YGSCO YESCO NORCONN
Michael G. Morris C, D C, D C, D
John H. Forsgren EVP, CFO, D EVP, CFO, D EVP, CFO, D
Cheryl W. Grise CEO, D CEO, D CEO, D
Charles W. Shivery
Kerry J. Kuhlman
Gary A. Long
Leon J. Olivier
Dennis E. Welch P, COO, D P, COO, D P, COO, D
Christopher L. Beschler VP
David H. Boguslawski
Gregory B. Butler SVP, S, GC SVP, S, GC SVP, S, GC
Mark W. Fagan
Mary Jo Keating
Jeffrey R. Kotkin
Jean M. LaVecchia
Dana L. Louth
John M. MacDonald
David R. McHale VP, TRS VP, TRS VP, TRS
Margaret L. Morton
James A. Muntz
William J. Nadeau
Raymond P. Necci
Rodney O. Powell
Paul E. Ramsey
John P. Stack VP, C VP, C VP, C
Lisa J. Thibdaue
Roger C. Zaklukiewicz
Robert A. Bersak
O. Kay Comendul
Randy A. Shoop
Daniel P. Venora
Patricia A. Wood
Cynthia A. Reames
Christopher T. Burt
Michelle Moezzi
Murry K. Staples
Gregory C. Picklesimer
19
HOUSATONIC RMS CLP FUNDING (9)
Michael G. Morris C, D
John H. Forsgren EVP, CFO, D
Cheryl W. Grise CEO, D
Charles W. Shivery
Kerry J. Kuhlman
Gary A. Long
Leon J. Olivier
Dennis E. Welch P, COO, D
Christopher L. Beschler
David H. Boguslawski D, MC
Gregory B. Butler SVP, S, GC
Mark W. Fagan
Mary Jo Keating
Jeffrey R. Kotkin
Jean M. LaVecchia
Dana L. Louth
John M. MacDonald
David R. McHale VP, TRS
Margaret L. Morton
James A. Muntz
William J. Nadeau
Raymond P. Necci
Rodney O. Powell D, MC
Paul E. Ramsey
John P. Stack VP, C VP, TRS
Lisa J. Thibdaue
Roger C. Zaklukiewicz
Robert A. Bersak
O. Kay Comendul S
Randy A. Shoop P, D, MC
Daniel P. Venora
Patricia A. Wood
E. Edward Booker
Christopher T. Burt D, MC
Michelle Moezzi D, MC
Murry K. Staples P, CEO, D
Gregory C. Picklesimer S, TRS
20
PSNH FUNDING (10) PSNH FUNDING 2(10) WMECO FUNDING (11)
Michael G. Morris
John H. Forsgren
Cheryl W. Grise
Charles W. Shivery
Kerry J. Kuhlman D, MC
Gary A. Long D, MC D, MC
Leon J. Olivier
Dennis E. Welch
Christopher L. Beschler
David H. Boguslawski D, MC
Gregory B. Butler
Mark W. Fagan
Mary Jo Keating
Jeffrey R. Kotkin
Jean M. LaVecchia
Dana L. Louth
John M. MacDonald
David R. McHale
Margaret L. Morton
James A. Muntz
William J. Nadeau
Raymond P. Necci
Rodney O. Powell
Paul E. Ramsey D, MC D, MC
John P. Stack VP, TRS VP, TRS VP, TRS
Lisa J. Thibdaue
Roger C. Zaklukiewicz
Robert A. Bersak
O. Kay Comendul S S S
Randy A. Shoop P, D, MC P, D, MC P, D, MC
Daniel P. Venora
Patricia A. Wood
Cynthia A. Reames
Christopher T. Burt D, MC D, MC D, MC
Michelle Moezzi D, MC D, MC D, MC
Murry K. Staples
Gregory C. Picklesimer
21
NAEC NAESCO NNECO
Michael G. Morris P, CEO, D P, CEO, D P, CEO, D
John H. Forsgren D D D
Cheryl W. Grise D D D
Charles W. Shivery
Kerry J. Kuhlman
Gary A. Long
Leon J. Olivier
Dennis E. Welch
Christopher L. Beschler
David H. Boguslawski
Gregory B. Butler
Mark W. Fagan
Mary Jo Keating
Jeffrey R. Kotkin
Jean M. LaVecchia
Dana L. Louth
John M. MacDonald
David R. McHale VP, TRS VP, TRS VP, TRS
Margaret L. Morton
James A. Muntz
William J. Nadeau
Raymond P. Necci
Rodney O. Powell
Paul E. Ramsey
John P. Stack
Lisa J. Thibdaue
Roger C. Zaklukiewicz
Robert A. Bersak
O. Kay Comendul S S S
Randy A. Shoop
Daniel P. Venora
Patricia A. Wood
Cynthia A. Reames
Christopher T. Burt
Michelle Moezzi
Murry K. Staples
Gregory C. Picklesimer
22
COE SESI HEC/CJTS
William W. Schivley CHB, D
James B. Redden (12) P, D P, D
Armando J. Barone (13)
Joseph F. Bellefeuille (14)
Richard J. Cohen (15)
Annette M. Durnack (15)
Stephen J. Fabiani
Linda A. Jensen (12) VP, TRS, CL TRS, S, D
William J. Nadeau D
John J. Roman
Frank P. Sabatino VP, D
Jeffrey M. Warren (14)
Carol L. Carver (12)
Christopher Fogarty (14)
Frederic Lee Klein S
John M. Boardman
Dennis R. Brown (4)
Thomas M. Driscoll (16)
Michael A. Paolella (4)
Christopher T. Burt D
Alan J. Giantomaso (17) D
Michelle Moezzi D
Neil Petchers (18)
Barbara Casey (12)
Britta MacIntosh (12)
Scott Silver (18)
Brian J. Grosjean (4)
Richard C. Neugebaur (19)
Michael J. Giarratano (19)
Stephen C. Persutti (4)
23
ERI/HEC (20) HTEP RFS
William W. Schivley
James B. Redden MC P, D D
Armando J. Barone
Joseph F. Bellefeuille SVP
Richard J. Cohen
John J. Roman
Annette M. Durnack
Stephen J. Fabiani D
Linda A. Jensen TRS VP, TRS, CL, D TRS
William J. Nadeau
Frank P. Sabatino
Jeffrey M. Warren VP
Carol L. Carver S
Christopher Fogarty
Frederic Lee Klein
John M. Boardman
Dennis R. Brown
Thomas M. Driscoll
Michael A. Paolella
Christopher T. Burt
Alan J. Giantomaso
Michelle Moezzi
Neil Petchers VC, MC
Barbara Casey S
Britta MacIntosh C, MC
Scott Silver MC
Brian J. Grosjean
Richard C. Neugebaur
Michael J. Giarratano
Stephen C. Persutti
24
NEI NGC NGS
William W. Schivley VP, D D
James B. Redden
Armando J. Barone
Joseph F. Bellefeuille
Richard J. Cohen
Annette M. Durnack
Stephen J. Fabiani
Linda A. Jensen
William J. Nadeau VP VP, COO, D
John J. Roman VP, C
Frank P. Sabatino VP VP
Jeffrey M. Warren
Carol L. Carver
Christopher Fogarty
Frederic Lee Klein S S S
John M. Boardman
Dennis R. Brown D
Thomas M. Driscoll
Michael A. Paolella
Christopher T. Burt
Alan J. Giantomaso
Michelle Moezzi
Neil Petchers
Barbara Casey
Britta MacIntosh
Scott Silver
Brian J. Grosjean
Richard C. Neugebaur
Michael J. Giarratano
Stephen C. Persutti
25
WEC WNS GREENPORT (21)
William W. Schivley
James B. Redden
Armando J. Barone
Joseph F. Bellefeuille
Richard J. Cohen
Annette M. Durnack
Stephen J. Fabiani
Linda A. Jensen
William J. Nadeau VP, COO, D VP, COO, D
John J. Roman
Frank P. Sabatino
Jeffrey M. Warren
Carol L. Carver
Christopher Fogarty
Frederic Lee Klein S S
John M. Boardman
Dennis R. Brown
Thomas M. Driscoll D D
Michael A. Paolella
Christopher T. Burt
Alan J. Giantomaso
Michelle Moezzi
Neil Petchers
Barbara Casey
Britta MacIntosh
Scott Silver
Brian J. Grosjean D
Richard C. Neugebaur D
Michael J. Giarratano P
Stephen C. Persutti VP, S, TRS
26
Select SENY SECI
William W. Schivley P, D P, D
James B. Redden P, D
Armando J. Barone VP
Joseph F. Bellefeuille SVP
Richard J. Cohen VP
Annette M. Durnack VP
Stephen J. Fabiani VP, D D D
Linda A. Jensen TRS
William J. Nadeau
John J. Roman
Frank P. Sabatino SVP, D D
Jeffrey M. Warren VP
Carol L. Carver CL
Christopher Fogarty C
Frederic Lee Klein S S
John M. Boardman C TRS
Dennis R. Brown
Thomas M. Driscoll
Michael A. Paolella
Christopher T. Burt
Alan J. Giantomaso
Michelle Moezzi
Neil Petchers
Barbara Casey
Britta MacIntosh
Scott Silver
Brian J. Grosjean
Richard C. Neugebaur
Michael J. Giarratano
Stephen C. Persutti
27
ESB NGSM
William W. Schivley
James B. Redden
Armando J. Barone
Joseph F. Bellefeuille
Richard J. Cohen
Annette M. Durnack
Stephen J. Fabiani
Linda A. Jensen
William J. Nadeau VP, COO, D VP, COO, D
John J. Roman
Frank P. Sabatino
Jeffrey M. Warren
Carol L. Carver
Christopher Fogarty
Frederic Lee Klein S S
John M. Boardman
Dennis R. Brown
Thomas M. Driscoll D
Michael A. Paolella D
Christopher T. Burt
Alan J. Giantomaso
Michelle Moezzi
Neil Petchers
Barbara Casey
Britta MacIntosh
Scott Silver
Brian J. Grosjean
Richard C. Neugebaur
Michael J. Giarratano
Stephen C. Persutti
28
CYAPCO YAEC MYAPCO
Bruce D. Kenyon (22) CEO, D, CHB CEO, D, CHB D
Richard M. Kacich (23) P D
Wayne Norton (22) P, D
Thomas W. Bennet, Jr. (23) VP, CFO VP, CFO
Kenneth J. Heider (22) VP
Gregory A. Maret (23) VP
Gerald Garfield (24) GC
Merrill J. Atkins (23) AGC, S AGC, CL
Kethleen Jewell-Kelleher (23) TRS, C TRS, C
Michael J. Hager (25) D D D
William S. Hass (25) D D D
Neven Rabadjija (26) D D
Robert H. Martin (27) D D D
Raymond P. Necci D D
Frederic E. Greenman (28) D D D
Stephen W. Page (29) D D D
Randy A. Shoop D D
William J. Quinlan D
James A. Muntz D
Frank Rothen (30) D
James F. Crowe (22) D
Gerald C. Poulin (31) D D CHB, D
Ted C. Feigenbaum (32) P, CEO
Michael J. Meisner (32) VP, CNO
Michael E. Thomas (32) VP, CFO
Carrie D. Guerrette (32) TRS
William M. Finn (33) S
Joseph D. Fay (32) CL
Brent M. Boyles (34) D
Sara J. Burns (33) D
Curtis I. Call (35) D
James L. Connors (36) D
Robert J. DeAngelo D
R. Scott Mahoney (33) D
Peter J. Moynihan (37) D
Thomas E. Murley (38) D
Kirk L. Ramsauer (39) D
29
The principal business address of the individuals listed above is 107 Selden
Street, Berlin, Connecticut 06037, except as otherwise noted.
(1) Retired effective January 1, 2004.
(2) Principal business address is: Western Massachusetts Electric Company,
174 Brush Hill Avenue, West Springfield, Massachusetts 01089.
(3) Principal business address is: Public Service Company of New Hampshire,
780 N. Commercial Street, Manchester, New Hampshire 03101.
(4) Principal business address is: Northeast Generation Services Company,
301 Hammer Mill Road, Rocky Hill, Connecticut 06043.
(5) Principal business address is: AMACAR Group, 6526 Morrison Boulevard,
Suite 318, Charlotte, North Carolina 28211.
(6) Principal business address is: Global Securitization Services, LLC, 114
West 47th Street, Suite 1715, New York, New York 10036.
(7) Principal business address is: R. M. Services, Inc., 222 Pitkin Street,
East Hartford, Connecticut 06108.
(8) CL&P Capital is a partnership in which CL&P serves as general partner.
(9) CLP Funding LLC is a Delaware limited liability company formed to issue
rate reduction bonds. CL&P is the sole member.
(10) PSNH Funding LLC and PSNH Funding LLC2 are Delaware limited liability
companies formed to issue rate reduction bonds. PSNH is the sole member
of each.
(11) WMECO Funding LLC is a Delaware limited liability company formed to
issue rate reduction bonds. WMECO is the sole member.
(12) Principal business address is: Select Energy Services, Inc., 24 Prime
Parkway, Natick, Massachusetts 01760.
(13) Principal business address is: Select Energy Contracting, Inc., 383
Middle Street, Suite 101, Bristol, Connecticut 06010.
(14) Principal business address is: Select Energy Contracting, Inc., 605
Front Street, Manchester, New Hampshire 03102.
(15) Principal business address is: Select Energy New York, Inc., 507 Plum
Street, Syracuse, New York 13204.
(16) Principal business address is: E. S. Boulos Company, Five Star
Industrial Park, Westbrook, Maine 04092.
(17) Principal business address is: Select Energy Services, Inc., 811
Jericho Turnpike, Suite 101 W, Smithtown, New York 11787.
(18) Principal business address is: ERI Services, Inc., 350 Fairfield
Avenue, Bridgeport, Connecticut 06604.
(19) Principal business address is: Hawkeye Electric, LLC, 2 Access Road,
Patchogue, New York 11772.
(20) ERI/HEC EFA-Med, LLC is a Delaware limited liability company formed to
perform energy services work for the United States Navy. Select Energy
Services, Inc. owns 50% membership interest and ERI Services, Inc.,
owns 50% membership ownership interest.
(21) Greenport Power, LLC is a New York limited liability company formed to
construct a peaking power plant for Global Common LLC in Greenport,
Long Island, New York. Northeast Generation Services Company owns 50%
membership interest and Hawkeye Electric, LLC owns 50% membership
ownership interest.
30
(22) Principal business address is: Connecticut Yankee Atomic Power Company,
362 Injun Hollow Road, East Hampton, Connecticut 06424.
(23) Principal business address is: Yankee Atomic Electric Company, 19
Midstate Drive, Auburn, Massachusetts 01501.
(24) Principal business address is: Day, Berry & Howard LLP, CityPlace I,
Hartford, Connecticut 06103.
(25) Principal business address is: 55 Bearfoot Road, Northboro,
Massachusetts 01532.
(26) Principal business address is: NSTAR Electric & Gas Corporation, 800
Boylston Street, 17th Floor, Boston, Massachusetts 02199.
(27) Principal business address is: NSTAR Electric & Gas Corporation, One
NSTAR Way, NE220, Westwood, Massachusetts 02090.
(28) Principal business address is: National Grid USA Service Company, Inc.,
42 Fuller Brook Road, Wellesley, Massachusetts 02181.
(29) Principal business address is: Central Vermont Public Service Corp., 77
Grove Street, Rutland, Vermont 05701
(30) Principal business address is: 188 Great Neck Road, Waterford,
Connecticut 06385.
(31) Principal business address is: 64 Tallwood Drive, Readfield, Maine
04355.
(32) Principal business address is: Maine Yankee Atomic Power Company, 321
Old Fery Road, Wiscasset, Maine 04578.
(33) Principal business address is: Central Maine Power Company, Edison
Drive, Augusta, Maine 04336.
(34) Principal business address is: Maine Public Service Company, 209 State
Street, P. O. Box 1209, Presque Isle, Maine 04769.
(35) Principal business address is: Energy East Management Corporation, 52
Farm View Drive, New Gloucester, Maine 04260.
(36) Principal business address is: EMERA Energy, Inc., 1894 Barrington
Street, Barrington Tower, Halifax, Nova Scotia, Canada B3J2A8.
(37) Principal business address is: 103 Brookside Road, Portland, Maine
04103.
(38) Principal business address is: 9106 McDonald Drive, Bethesda, Maryland
20817.
(39) Principal business address is: National Grid USA Service Company, Inc.,
25 Research Drive, Westborough, Massachusetts 01582.
31
KEY:
AGC - Assistant General Counsel
AT - Associate Trustee
AVP - Assistant Vice President
C - Controller
CAO - Chief Administrative Officer
CEO - Chief Executive Officer
CFO - Chief Financial Officer
CIO - Chief Information Officer
CH - Chairman
CHB - Chairman of the Board
CH(E) - Chairman of the Executive Committee
CL - Clerk
COMP - Comptroller
CNO - Chief Nuclear Officer
D - Director
DS - Director of Services
EVP - Executive Vice President
ED - Executive Director
GC - General Counsel
MC - Member of Management Committee
P - President
PC - President - Competitive Group
PG - President - Generation Group
PN - President - Nuclear Group
PU - President - Utility Group
PCT - President - Connecticut Division
PNH - President - New Hampshire Division
S - Secretary
SVP - Senior Vice President
T - Trustee
TRS - Treasurer
VC - Vice Chairman
VP - Vice President
NU - Northeast Utilities
ESB - E. S. Boulos Company
CL&P - The Connecticut Light and Power Company
CL&P Cap. - CL&P Capital, L.L.C.
CL&P Funding - CL&P Funding LLC
COE - Charter Oak Energy, Inc.
Conn Steam - The Connecticut Steam Company
CRC - CL&P Receivables Corporation
CYAPCO - Connecticut Yankee Atomic Power Company
EPI - Electric Power, Incorporated
ERI/HEC - ERI/HEC EFA-Med, LLC
GREENPORT - Greenport Power, LLC
HEC/CJTS - HEC/CJTS Energy Center LLC
HOUSATONIC - Housatonic Corporation
HWP - Holyoke Water Power Company
Mode 1 - Mode 1 Communications, Inc.
MYAPCO - Maine Yankee Atomic Power Company
NAEC - North Atlantic Energy Corporation
NAESCO - North Atlantic Energy Service Corporation
NGC - Northeast Generation Company
NGS - Northeast Generation Services Company
NGSM - NGS Mechanical, Inc.
NNECO - Northeast Nuclear Energy Company
NORCONN - NorConn Properties, Inc.
NUEI - NU Enterprises, Inc.
NUSCO - Northeast Utilities Service Company
Nutmeg Power - The Nutmeg Power Company
PI - Properties, Inc.
PSNH - Public Service Company of New Hampshire
32
PSNH Funding - PSNH Funding LLC
PSNH Funding 2 - PSNH Funding LLC 2
Quinn. - The Quinnehtuk Company
RFS - Reeds Ferry Supply Co., Inc.
RMS - R. M. Services, Inc.
RRR - The Rocky River Realty Company
SECI - Select Energy Contracting, Inc.
Select - Select Energy, Inc.
SENY - Select Energy New York, Inc.
SESI - Select Energy Services, Inc.
WES - Woods Electrical Co., Inc.
WMECO - Western Massachusetts Electric Company
WMECO Funding - WMECO Funding LLC
WNS - Woods Network Services, Inc.
YES - Yankee Energy System, Inc.
YEFSCO - Yankee Energy Financial Services Company
YESCO - Yankee Energy Services Company
YGSCO - Yankee Gas Services Company
YAEC - Yankee Atomic Electric Company
Part II. The following is a list of the officers, Directors and Trustees who
have financial connections within the provisions of Section 17(c) of the Act.
Name and Position
Name of Location of Held in Applicable
Officer or Financial Financial Exemption
Director Institution Institution Rule*
(1) (2) (3) (4)
Cotton M. Cleveland Ledyard National Bank Director A
Ledyard, New Hampshire
James F. Cordes Comerica Bank Director B
Texas
Michael G. Morris Webster Financial Director A, C, E, F
Corporation
Waterbury, CT
"A" designates Rule 70(a)
"B" designates Rule 70(b)
"C" designates Rule 70(c)
"D" designates Rule 70(d)
"E" designates Rule 70(e)
"F" designated Rule 70(f)
33
ITEM 6. OFFICERS AND DIRECTORS (Continued)
Part III. The information provided herein is applicable to all system
companies, except as indicated otherwise.
a. The compensation of Trustees, Directors, and Executive Officers of
system companies:
i. Compensation of NU Trustees
Each Trustee who is not an employee of Northeast Utilities or its subsidiaries
receives an annual retainer of $20,000 payable quarterly. The Chair of the Audit
Committee is paid an additional annual retainer of $10,000, the Chair of the
Compensation Committee is paid an additional annual retainer of $5,000, and the
Chairs of the Corporate Affairs, Corporate Governance, and Finance Committees
are paid an additional annual retainer of $4,000 ($3,750 in 2003), each payable
quarterly. In addition to the above compensation, The Lead Trustee is paid an
additional annual retainer of $50,000 ($40,000 in 2003) payable quarterly for
the extra services performed as Lead Trustee.
A non-employee Trustee receives $1,500 ($1,000 prior to July 1, 2003) and $1,000
for each meeting attended of the Board or its Committees, respectively, or, for
participation in a meeting by conference telephone, $1,000 for a Board meeting
and $675 for a Committee meeting. However, members of the Audit Committee will
receive $1,000 for certain meetings held by conference telephone during 2004.
A non-employee Trustee who is asked by either the Board of Trustees or the
Chairman of the Board to perform extra Board-related services in the interest of
the Northeast Utilities system may receive additional compensation of $750 per
half-day ($1,000 per day prior to July 1, 2003) plus necessary expenses.
In December 2003 the Board elected Dr. Kennan as interim Chairman of the Board
and formed a Search Committee following Mr. Morris's announced retirement. In
January 2004, the Compensation Committee approved compensation for the interim
Chairman of the Board and for members of the Search Committee. During her tenure
as interim Chairman of the Board, which ended upon the election of Mr. Shivery
as a Trustee and as Chairman of the Board, President and Chief Executive Officer
on March 29, 2004, Dr. Kennan was paid $40,000 per month in lieu of all
retainers and meeting fees, and Dr. Kennan received $20,000 additional
compensation for extra services performed during December 2003. Members of the
Search Committee (except for Dr. Kennan) received a one-time payment of $10,000,
and the Chair of the Search Committee (Mr. Cordes) received a one-time payment
of $20,000, in lieu of normal meeting fees for all meetings of the Search
Committee held during the search for a new chief executive officer for the
Company.
Under the terms of the Northeast Utilities Incentive Plan, each non-employee
Trustee is also eligible for stock-based grants. During 2003, each non-employee
Trustee received 2,000 common shares of Northeast Utilities, and was granted
1,000 restricted common shares under the Incentive Plan, which vested in March
2004, subject in each case to any deferral election in effect. In January 2004,
Dr. Kennan was granted 5,000 restricted share units and each other non-employee
Trustee was granted 3,000 restricted share units under the Incentive Plan. A
portion of these units is subject to forfeiture if the Trustee leaves the Board
prior to January 10, 2005. Absent forfeiture, and subject to any deferral
election in effect, half of these units will be paid as newly-issued shares in
January 2005 and half will be paid as newly-issued shares in January 2009.
Prior to the beginning of each calendar year, non-employee Trustees may
irrevocably elect to have all or any portion of their retainers and fees paid in
the form of common shares of Northeast Utilities. Pursuant to the Northeast
Utilities Deferred Compensation Plan for Trustees, each Trustee may also
irrevocably elect to defer receipt of some or all cash and/or share
compensation.
34
ii. Compensation of Subsidiary Directors
Employees serving as Directors of CL&P, PSNH and WMECO receive no
special compensation on account of such service. CL&P, PSNH and WMECO had no
non-employee Directors during 2003. During 2002 each non-employee Director of
PSNH and WMECO was compensated at an annual rate of $10,000 cash, and received
$500 for each meeting attended of the Board of Directors or, in the case of
PSNH, its committees. A non-employee Director who participated in a meeting of
the Board of Directors or any of its committees by conference telephone received
$300 per meeting. Also, committee chairs were compensated at an additional
annual rate of $1,500.
iii. Compensation of Executive Officers
SUMMARY COMPENSATION TABLE
The following tables present the cash and non-cash compensation received by
the Chief Executive Officer and the next four highest paid executive officers of
NU, CL&P, PSNH, and WMECO during 2003, in accordance with rules of the SEC:
------------------------------------------------------------------------------------------------------
Annual Compensation Long-Term Compensation
------------------- -----------------------------------
Awards Payouts
------------------------ ---------
Restricted Securities Long-Term All
Stock Underlying Incentive Other
Other Annual Award(s) Options/Stock Program Compensa-
Name and Salary Bonus Compensation ($) Appreciation Payouts tion ($)
Principal Position Year ($) ($) (Note 2) (Note 3) Rights (#) ($) (Note 3)
Michael G. Morris 2003 957,692 2,600,000 227,914 1,060,500 - - 28,731
Chairman of the
Board, President 2002 915,385 558,000 209,883 - 630,600 - 27,462
and Chief Executive
Officer of NU and 2001 900,000 869,805 238,924 - 220,000 - 27,000
Chairman of
PSNH and WMECO
(Note 4)
John H. Forsgren 2003 574,615 1,086,175 17,384 427,495 - - 187,574
Executive Vice
President and 2002 556,154 165,000 - - 54,400 - 179,674
Chief Financial
Officer and Vice 2001 524,423 200,000 - - 98,000 - 5,100
Chairman of NU
Charles W. Shivery 2003 554,616 674,000 8,946 220,004 - - 16,639
President -
Competitive Group 2002 306,731 200,000 244,594 - 29,204 - 7,615
of NU (NU Table
only (See Note 5) 2001 - - - - - - -
Cheryl W. Grise 2003 451,538 581,513 13,216 324,994 - - 184,587
President -
Utility Group of NU 2002 409,231 280,000 - - 39,600 - 180,523
and Chief Executive
Officer of CL&P, 2001 338,654 180,000 - - 76,000 - 10,119
PSNH and WMECO
Gregory B. Butler 2003 244,615 232,200 4,473 109,995 - - 6,000
Senior Vice Presi-
dent, Secretary 2002 206,154 70,000 - - 13,200 - 6,000
and General Counsel
of NU and NUSCO 2001 189,269 70,000 - - 7,600 - 5,100
Leon J. Olivier 2003 317,100 275,000 3,192 78,505 - - 18,343
President and Chief
Operating Officer 2002 303,908 138,000 - - 9,900 - 9,117
of CL&P
(CL&P Table Only) 2001 194,232 123,000 - 100,009 22,500 - -
35
Gary A. Long 2003 185,154 140,000 2,643 65,002 - - 5,555
President and Chief
Operating Officer 2002 178,154 70,000 - - 8,100 - 5,345
of PSNH
(PSNH Table Only) 2001 171,846 55,000 - - 6,750 - 5,100
Kerry J. Kuhlman 2003 180,015 125,000 2,542 62,499 - - 5,400
President and Chief
Operating Officer 2002 173,093 62,000 - - 7,900 - 5,193
of WMECO
(WMECO Table Only) 2001 166,846 45,000 - - 6,200 - 5,005
Notes:
1. Other annual compensation for Mr. Morris includes personal use of the
Company's airplane, having a cost to the Company of $170,984 in 2003, $180,886
in 2002, and $219,088 in 2001. Other annual compensation for Mr. Shivery in 2002
includes $144,000 of relocation expenses, per his employment agreement.
2. At December 31, 2003, the aggregate restricted stock holdings by the
individuals named in the table for NU, CL&P, PSNH and WMECO were 130,773,
122,439, 119,634 and 119,811 common shares of NU, respectively, with a value of
$2,637,691, $2,469,595, $2,413,018, and 2,416,588, respectively. Restricted
stock was awarded as long term incentive compensation to each of these
individuals in 2003, except that Mr. Morris's award was in restricted share
units that were forfeited upon his retirement; payment of 50 percent of the 2002
and 2001 annual bonuses of each of Mr. Morris, Mr. Forsgren, and Mrs. Grise was
made in the form of restricted shares vesting over three years; payment of 50
percent of the 2003 annual bonuses of each of Mr. Forsgren, Mr. Shivery and Mrs.
Grise was made in the form of restricted share units vesting over three years.
Dividends on restricted stock are paid out.
3. "All Other Compensation" for 2003 consists of employer matching
contributions under the Northeast Utilities Service Company 401k Plan, generally
available to all eligible employees (each of Messrs. Morris, Forsgren, Shivery,
Butler and Olivier and Mrs. Grise - $6,000, Mr. Long - $5,555 and Mrs. Kuhlman -
$5,400) and matching contributions under the Deferred Compensation Plan for
Executives (Mr. Morris - $22,731, Mr. Shivery - $10,639, Mrs. Grise - $7,546 and
Mr. Olivier - $3,513). For Mr. Forsgren and Mrs. Grise, it also includes vested
deferred compensation paid out in 2003 of $181,574 and $171,041, respectively
(See Employment Contracts and Termination of Employment and Change in Control
Arrangements, Below), and for Mr. Olivier it includes $8,830 in non-qualified
pension payments in accordance with his employment agreement.
4. Retired January 1, 2004.
5. Served as interim President of NU effective January 1, 2004 and elected
Chairman of the Board, President and Chief Executive Officer of NU on March 29,
2004.
AGGREGATED OPTIONS/SAR EXERCISES IN LAST
FISCAL YEAR AND FY-END OPTION/SAR VALUES
Shares With
Respect to Number of Securities Value of Unexercised
Which Underlying Unexercised In-the-Money
Options Were Value Options/SARs
Options/SARs
Exercised Realized at Fiscal Year End (#) at Fiscal Year End ($)
Name (#) ($) Exercisable Unexercisable Exercisable Unexercisable
------------------------------------------------------------------------------------------------------
Michael G. Morris 150,000 994,650 863,124 660,402 4,812,597 1,952,103
John H. Forsgren 81,919 153,940 83,464 68,936 33,598 60,048
Charles W. Shivery - - 9,674 19,350 12,286 24,574
Cheryl W. Grise - - 119,492 51,736 217,469 43,809
Gregory B. Butler 15,716 55,726 18,466 11,334 22,589 13,992
Leon J. Olivier - - 9,967 9,933 6,847 11,294
Gary A. Long - - 20,399 7,651 46,669 8,586
Kerry J. Kuhlman - - 21,529 7,335 50,850 8,375
------------------------------------------------------------------------------------------------------
36
LONG-TERM INCENTIVE PLANS - AWARDS IN LAST FISCAL YEAR
Grants of performance units were made during 2003 under the Northeast Utilities
Incentive Plan to the Company's officers. Payments will be made in cash
following the close of the performance period. Threshold, target, and maximum
payouts will be determined based on net income over the performance period.
Grants to the executive officers named in the Summary Compensation Table were as
follows:
(a) (b) (c) (d) (e) (f)
Number of Performance Estimated Future Payouts
Shares, or Other Under Non-Stock Price-Based Plans
Units or Period Until
Other Maturation
Rights Or Payout Threshold Target Maximum
Name (#) ($) ($) ($)
----- -------- ------------------- --------- ------ -------
Michael G. Morris 10,450 1/1/2003-12/31/2005 418,000 1,045,000 1,463,000
John H. Forsgren 4,275 1/1/2003-12/31/2005 171,000 427,500 598,500
Charles W. Shivery 2,200 1/1/2003-12/31/2005 88,000 220,000 308,000
Cheryl W. Grise 3,250 1/1/2003-12/31/2005 130,000 325,000 455,000
Gregory B. Butler 1,100 1/1/2003-12/31/2005 44,000 110,000 154,000
Leon J. Olivier 785 1/1/2003-12/31/2005 31,400 78,500 109,900
Gary A. Long 650 1/1/2003-12/31/2005 26,000 65,000 91,000
Kerry J. Kuhlman 625 1/1/2003-12/31/2005 25,000 62,500 87,500
b. Their interest in the securities of system companies including
options or other rights to acquire securities:
NU owns 100 percent of the outstanding common stock of registrants CL&P,
PSNH, and WMECO. As of March 1, 2004, (except that Mr. Morris's beneficial
ownership is given as of December 31, 2003, his last day as an Executive Officer
of these companies) the Directors and Executive Officers of NU, CL&P, PSNH, and
WMECO beneficially owned the number of shares of each class of equity securities
of NU listed below. No equity securities of CL&P, PSNH, or WMECO are owned by
the Directors and Executive Officers of CL&P, PSNH, and WMECO. Unless otherwise
noted, each Director and Executive Officer of CL&P, PSNH, and WMECO has sole
voting and investment power with respect to the listed shares.
Title of Amount and Nature of Percent of
Class Name Beneficial Ownership Class
NU Common David H. Boguslawski (1) 39,807 (2)
NU Common Richard H. Booth (3) 6,000 (2)
NU Common Gregory B. Butler (4) 39,832 (2)
NU Common Cotton Mather Cleveland (5) 20,232 (2)
NU Common Sanford Cloud, Jr. (6) 21,818 (2)
NU Common James F. Cordes (3) 11,500 (2)
NU Common E. Gail de Planque (5) 20,640 (2)
NU Common John H. Forsgren (7) 150,120 (2)
NU Common John G. Graham 1,000 (2)
NU Common Cheryl W. Grise (8) 182,553 (2)
NU Common Elizabeth T. Kennan (9) 18,755 (2)
NU Common Kerry J. Kuhlman (10) 37,222 (2)
NU Common Gary A. Long (11) 35,715 (2)
NU Common Michael G. Morris (12) 974,832 (2)
NU Common Leon J. Olivier (13) 22,498 (2)
NU Common Robert E. Patricelli (5) 27,522 (2)
NU Common Charles W. Shivery (14) 26,406 (2)
NU Common John F. Swope (9) 22,361 (2)
Amount beneficially owned by Directors and Executive Officers as a group:
Amount and Nature of Percent of
Company Number of Persons Beneficial Ownership Outstanding
NU 15 1,595,658 (15) 1.2%
CL&P 7 1,436,049 (16) 1.12%
PSNH 7 1,449,265 (16) 1.13%
WMECO 7 1,450,773 (16) 1.13%
37
(1) Includes 29,154 shares that could be acquired by Mr. Boguslawski pursuant
to currently exercisable options and 3,978 shares as to which Mr. Boguslawski
has sole voting and no dispositive power.
(2) As of March 1, 2004, each Trustee and Executive Officer of NU and Director
and Executive Officer of CL&P, PSNH, or WMECO owned less than one percent of the
shares outstanding.
(3) Includes 5,000 shares that could be acquired by the beneficial owner
pursuant to currently exercisable options.
(4) Includes 25,400 shares that could be acquired by Mr. Butler pursuant to
currently exercisable options and 5,835 shares as to which Mr. Butler has sole
voting and no dispositive power.
(5) Includes 12,500 shares that could be acquired by the beneficial owner
pursuant to currently exercisable options and 1,000 shares as to which the
beneficial owner has sole voting and no dispositive power.
(6) Includes 7,500 shares that could be acquired by Mr. Cloud pursuant to
currently exercisable options and 1,000 shares as to which Mr. Cloud has sole
voting and no dispositive power.
(7) Includes 112,598 shares that could be acquired by Mr. Forsgren pursuant to
currently exercisable options and 28,343 shares as to which Mr. Forsgren has
sole voting and no dispositive power.
(8) Includes 141,359 shares that could be acquired by Mrs. Grise pursuant to
currently exercisable options, 25,426 shares as to which Mrs. Grise has sole
voting and no dispositive power, and 265 shares held by Mrs. Grise's husband as
custodian for her children, with whom she shares voting and dispositive power.
(9) Includes 12,500 shares that could be acquired by the beneficial owner
pursuant to currently exercisable options.
(10) Includes 26,230 shares that could be acquired by Mrs. Kuhlman pursuant to
currently exercisable options and 3,315 shares as to which Ms. Kuhlman has sole
voting and no dispositive power.
(11) Includes 25,349 shares that could be acquired by Mr. Long pursuant to
currently exercisable options and 3,448 shares as to which Mr. Long has sole
voting and no dispositive power.
(12) Includes 863,124 shares that could have been acquired by Mr. Morris as of
December 31, 2003 pursuant to then exercisable options and 31,732 shares as to
which Mr. Morris had sole voting and no dispositive power until his retirement
in 2004.
(13) Includes 13,266 shares that could be acquired by Mr. Olivier pursuant to
currently exercisable options and 5,837 shares as to which Mr. Olivier has sole
voting and no dispositive power.
(14) Includes 9,674 shares that could be acquired by Mr. Shivery pursuant to
currently exercisable options and 12,566 shares as to which Mr. Shivery has sole
voting and no dispositive power.
(15) Includes 52,416 shares that could be acquired by an executive officer other
than those named in the table above pursuant to currently exercisable options,
and 19,669 shares beneficially owned by such officer, as to 7,009 of which such
officer has sole voting and no dispositive power.
(16) Includes 9,674 shares that could be acquired by an executive officer other
than those named in the table pursuant to currently exercisable options, 401
shares held in an ESOP by such officer, as to which he has sole voting power and
no dispositive power, and 11,670 shares as to which such officer has sole voting
and no dispositive power.
38
In addition, NU's proxy statement reflects that NU's trustees and named
executive officers owned the following numbers of "restricted share units" and
"deferred shares or units" as of March 1, 2004 (except for Mr. Morris, whose
ownership is given as of December 31, 2003). "Restricted share units" includes
restricted share units issued under the Northeast Utilities Incentive Plan
receipt of which has not been deferred. "Deferred shares or units" includes
common shares and restricted share units receipt of which has been deferred, and
which are recorded in the executive officer's or Trustee's account under the
Northeast Utilities Deferred Compensation Plan for Trustees or the Northeast
Utilities Deferred Compensation Plan for Executives. In each case the named
individual has neither voting nor dispositive power with respect to these
deferred shares or deferred restricted share units nor the ability to obtain
beneficial ownership of the shares represented thereby within 60 days.
Name Number of Number of
---- Restricted Share Units Deferred Shares and Units
---------------------- -------------------------
Richard H. Booth 0 7,689
Gregory B. Butler 13,021 0
Cotton Mather Cleveland 0 5,935
Sanford Cloud, Jr. 3,000 889
James F. Cordes 3,000 3,083
E. Gail de Planque 0 3,000
John H. Forsgren 51,442 0
John G. Graham 0 7,600
Cheryl W. Grise 35,326 1,539
Elizabeth T. Kennan 0 8,083
Michael G. Morris 75,000 6,052
Robert E. Patricelli 3,000 0
Charles W. Shivery 30,000 1,119
John F. Swope 0 5,048
SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS
The following table sets forth the number of Common Shares of Northeast
Utilities issuable under the equity compensation plans of the Northeast
Utilities System, as well as their weighted exercise price, in accordance with
the rules of the SEC:
Number of securities
Number of securities Weighted-average remaining available for
to be issued upon exercise price of future issuance under
exercise of outstanding equity compensation plans
outstanding options, options, warrants (excluding securities
Plan Category warrants and rights and rights reflected in column (a))
----------------------------------------------------------------------------------------
(a) (b) (c)
----------------------------------------------------------------------------------------
Equity 3,225,593 $17.033 See Note 1
compensation
plans approved by
security holders
Equity 350,000 $ 9.625 None
compensation
plans not
approved by
security holders
Total 3,575,593 $16.308 See Note 1
Notes to table:
1. Under the Northeast Utilities Incentive Plan, 5,385,371 shares were available
for issuance as of December 31, 2003. In addition, an amount equal to one
percent of the outstanding shares as of the end of each year becomes available
for issuance under the Incentive Plan the following year. Under the Northeast
Utilities Employee Share Purchase Plan II, 6,921,265 additional shares are
available for issuance. Each such plan expires in 2008.
39
SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the Securities Exchange Act of 1934 requires Trustees and
certain officers of Northeast Utilities and persons who beneficially own more
than ten percent of the outstanding common shares of Northeast Utilities to file
reports of ownership and changes in ownership with the Securities and Exchange
Commission (SEC) and the New York Stock Exchange. Based on such reports, or
written representations that no Form 5 was required, Northeast Utilities
believes that for the year ended December 31, 2003, all such reporting
requirements were complied with in a timely manner.
c. Their contracts and transactions with system companies:
Northeast Utilities has entered into an employment agreement with Mr.
Morris and NUSCO has entered into employment agreements or arrangements with
Messrs. Butler, Forsgren, Olivier and Shivery and Mrs. Grise; Mr. Olivier and
each of the other named executive officers participate in the Special Severance
Program for Officers of Northeast Utilities Companies. The agreements and the
Special Severance Program are also binding on Northeast Utilities and on certain
majority-owned subsidiaries of Northeast Utilities.
The agreements with Messrs. Morris, Shivery, Butler and Forsgren and Mrs.
Grise obligate the officer to perform such duties as may be directed by the
NUSCO Board of Directors or the Northeast Utilities Board of Trustees, protect
the Company's confidential information, refrain, while employed by the Company
and for a period of time thereafter, from competing with the Company in a
specified geographic area, and provide that the officer's base salary will not
be reduced below certain levels without the consent of the officer. These
agreements also provide that the officer will participate in specified benefits
under the Supplemental Executive Retirement Plan or other supplemental
retirement programs and/or in certain executive incentive programs at specified
incentive opportunity levels, for a specified employment term and for automatic
one-year extensions of the employment term unless at least six months' notice of
non-renewal is given by either party. The employment term may also be ended by
the Company for "cause", as defined, at any time (in which case no supplemental
retirement benefit, if any, shall be due), or by the officer on thirty days'
prior written notice for any reason. Absent "cause", the Company may remove the
officer from his or her position on sixty days' prior written notice, but in the
event the officer is so removed and signs a release of all claims against the
Company, the officer will receive one or two years' base salary and annual
incentive payments, specified employee welfare and pension benefits, and vesting
of specified long-term incentive compensation.
Under the terms of these agreements and the Special Severance Program, upon
any termination of employment following a change of control, as defined, between
(a) the earlier of the date shareholders approve a change of control transaction
or a change of control transaction occurs and (b) the earlier of the date, if
any, on which the Board of Trustees abandons the transaction or the date two
years following the change of control, if the officer signs a release of all
claims against the Company, the officer will be entitled to certain payments
including a multiple (not to exceed three) of "base compensation", as defined,
annual incentive payments, specified employee welfare and pension benefits, and
vesting of stock appreciation rights, options and restricted stock. Certain of
the change of control provisions may be modified by the Board of Trustees prior
to a change of control, on at least two years' notice to the affected
officer(s).
Besides the terms described above, the agreements of Messrs. Morris,
Shivery and Forsgren provide for a specified salary, cash, restricted stock
and/or stock options upon employment, special incentive programs and/or special
retirement benefits. The agreements of Mr. Forsgren and Mrs. Grise were
supplemented during 2001 to provide for special deferred compensation of
$520,000 and $500,000, respectively, vesting in even installments (adjusted to
reflect investment performance) on June 28, 2002, 2003 and 2004, so long as such
officer remains in the employ of Northeast Utilities Service Company, and
vesting sooner in the event of a change of control of the Company or involuntary
termination without cause.
Letter agreements reflecting the terms of employment of Messrs. Boguslawski
and Olivier provide for specified salary, cash, restricted stock, stock options
or other benefits upon employment.
40
The descriptions of the various agreements set forth above are for purpose
of disclosure in accordance with the proxy and other disclosure rules of the SEC
and shall not be controlling on any party; the actual terms of the agreements
themselves determine the rights and obligations of the parties.
d. Their indebtedness to system companies:
No Trustee, Director or executive officer was indebted to a system
company during 2003.
e. Their participation in bonus and profit-sharing arrangements and
other benefits:
Besides the discussion of compensation in Part III, Section (a) above,
see the following:
PENSION BENEFITS
The tables on the following page show the estimated annual retirement benefits
payable to an executive officer of Northeast Utilities upon retirement, assuming
that retirement occurs at age 65 and that the officer is at that time not only
eligible for a pension benefit under the Northeast Utilities Service Company
Retirement Plan (the Retirement Plan) but also eligible for either the
make-whole benefit or the make-whole benefit plus the target benefit under the
Supplemental Executive Retirement Plan for Officers of Northeast Utilities
System Companies (the Supplemental Plan). The Supplemental Plan is a
non-qualified pension plan providing supplemental retirement income to system
officers. The make-whole benefit under the Supplemental Plan, available to all
officers, makes up for benefits lost through application of certain tax code
limitations on the benefits that may be provided under the Retirement Plan, and
includes as "compensation" awards under the executive incentive plans and
deferred compensation (as earned). The target benefit further supplements these
benefits and is available to officers at the Senior Vice President level and
higher who are selected by the Board of Trustees to participate in the target
benefit and who remain in the employ of Northeast Utilities companies until at
least age 60 (unless the Board of Trustees sets an earlier age).
Mr. Morris's Employment Agreement provides that upon retirement he will be
entitled to receive a special retirement benefit calculated by applying the
benefit formula of the CMS Energy/Consumers Energy Company (CMS) Supplemental
Executive Retirement Plan to all compensation earned from the Northeast
Utilities system (the Company) and to all service rendered to the Company and
CMS. Mr. Morris's Employment Agreement also provides that if he retired after
age 60, his special retirement benefit would be no less than that which he would
have received had he been eligible for a make-whole benefit plus a target
benefit under the Supplemental Plan.
Messrs. Butler, Forsgren, and Shivery and Mrs. Grise are currently eligible for
a make-whole plus a target benefit. Messrs. Olivier and Long and Mrs. Kuhlman
are eligible for the make-whole benefit but not the target benefit.
Mr. Forsgren's Employment Agreement provides for supplemental pension benefits
based on crediting up to ten years of additional service and providing payments
equal to 25 percent of final average compensation (not to exceed 170 percent of
highest average base compensation received in any 36 month period) for up to 15
years following retirement, reduced by four percentage points for each year that
his age is less than 65 years at retirement. In addition, if Mr. Forsgren
retires after age 58, he will be eligible for a make-whole plus a target benefit
under the Supplemental Plan based on crediting three extra years of service,
unreduced for early commencement.
Mr. Shivery's Employment Agreement provides for a special retirement benefit,
following completion of five years of service with the Company, consisting of
the excess over benefits otherwise payable from the Retirement Plan and the
Supplemental Plan needed to give him the equivalent of fully-vested benefits
under the Retirement Plan and the Supplemental Plan calculated by adding three
additional years to his actual service and utilizing an early commencement
reduction factor of 2 percent per year for each year younger than age 65 at
commencement, if better than the factors then in use under the Retirement Plan.
The terms of Mr. Olivier's employment provide for certain supplemental
pension benefits in lieu of a make-whole benefit if certain requirements are
met, in order to provide a benefit similar to that provided by his previous
employer. If Mr. Olivier remains in continuous employment with the Company until
September 10, 2011 (or earlier with the Company's permission), he will be
eligible for a special benefit, subject to reduction for
41
termination prior to age 65, of three percent of Final Average Compensation for
each of his first 15 years of service since September 10, 2001 plus one percent
of Final Average Compensation for each of the second 15 years of service.
Alternatively, if he does not voluntarily terminate his employment with the
Company prior to his 60th birthday, or upon earlier termination upon a Change of
Control, as defined in the Special Severance Program, he may receive upon
retirement a lump sum payment of $2,050,000 in lieu of the make-whole benefit
and the benefit described in the preceding sentence.
ANNUAL BENEFIT FOR OFFICERS ELIGIBLE FOR MAKE-WHOLE BENEFIT
Final Years of Credited Service
Average
Compensation 15 20 25 30 35
$200,000 $43,264 $57,686 $72,107 $86,760 $101,413
$250,000 $54,514 $72,686 $90,857 $109,260 $127,663
$300,000 $65,764 $87,686 $109,607 $131,760 $153,913
$350,000 $77,014 $102,686 $128,357 $154,260 $180,163
$400,000 $88,264 $117,686 $147,107 $176,760 $206,413
$450,000 $99,514 $132,686 $165,857 $199,260 $232,663
$500,000 $110,764 $147,686 $184,607 $221,760 $258,913
$600,000 $133,264 $177,686 $222,107 $266,760 $311,413
$700,000 $155,764 $207,686 $259,607 $311,760 $363,913
$800,000 $178,264 $237,686 $297,107 $356,760 $416,413
$900,000 $200,764 $267,686 $334,607 $401,760 $468,913
$1,000,000 $223,264 $297,686 $372,107 $446,760 $521,413
$1,100,000 $245,764 $327,686 $409,607 $491,760 $573,913
$1,200,000 $268,264 $357,686 $447,107 $536,760 $626,413
$1,300,000 $290,764 $387,686 $484,607 $581,760 $678,913
$1,400,000 $313,264 $417,686 $522,107 $626,760 $731,413
$1,500,000 $335,764 $447,686 $559,607 $671,760 $783,913
42
ANNUAL BENEFIT FOR OFFICERS ELIGIBLE FOR
MAKE-WHOLE PLUS TARGET BENEFIT
Final Years of Credited Service
Average
Compensation 15 20 25 30 35
$ 200,000 $ 72,000 $ 96,000 $120,000 $120,000 $120,000
250,000 90,000 120,000 150,000 150,000 150,000
300,000 108,000 144,000 180,000 180,000 180,000
350,000 126,000 168,000 210,000 210,000 210,000
400,000 144,000 192,000 240,000 240,000 240,000
450,000 162,000 216,000 270,000 270,000 270,000
500,000 180,000 240,000 300,000 300,000 300,000
600,000 216,000 288,000 360,000 360,000 360,000
700,000 252,000 336,000 420,000 420,000 420,000
800,000 288,000 384,000 480,000 480,000 480,000
900,000 324,000 432,000 540,000 540,000 540,000
1,000,000 360,000 480,000 600,000 600,000 600,000
1,100,000 396,000 528,000 660,000 660,000 660,000
1,200,000 432,000 576,000 720,000 720,000 720,000
1,300,000 468,000 624,000 780,000 780,000 780,000
1,400,000 504,000 672,000 840,000 840,000 840,000
1,500,000 540,000 720,000 900,000 900,000 900,000
The benefits presented in the tables above are based on a straight life annuity
beginning at age 65 and do not take into account any reduction for joint and
survivorship annuity payments. Final average compensation for purposes of
calculating the target benefit is the highest average annual compensation of the
participant during any 36 consecutive months compensation was earned. Final
average compensation for purposes of calculating the make-whole benefit is the
highest average annual compensation of the participant during any 60 consecutive
months compensation was earned. Compensation for these benefits includes the
annual salary and bonus shown in the Summary Compensation Table and, for the
make-whole benefit for officers hired before November 2001, and for the target
benefit for officers who were hired before November 2001 and eligible for the
target benefit prior to October 2003, an amount that represents the annual value
of long term incentive compensation for 2002 and 2003. Compensation for purposes
of these benefits does not include employer matching contributions under the
401k Plan. In the event that an officer's employment terminates because of
disability, the retirement benefits shown above would be offset by the amount of
any disability benefits payable to the recipient that are attributable to
contributions made by Northeast Utilities and its subsidiaries under long term
disability plans and policies.
Mr. Morris is not eligible to participate in the Supplemental Plan, but he does
participate in the Retirement Plan. The amount of his annual compensation
covered by the Retirement Plan was limited by the IRS to $200,000 for 2003. The
compensation covered by the Supplemental Plan in 2003 for Mr. Forsgren, Mr.
Shivery, Mrs. Grise, Mr. Butler, Mr. Olivier, Mr. Long, and Mrs Kuhlman was
$1,871,931, $906,616, $1,169,601, $508,140, $634,627, $348,005, and $328,233,
respectively.
As of December 31, 2003, the executive officers named in the Summary
Compensation Table had approximately the following years of credited service for
purposes of the Supplemental Plan: Mr. Forsgren - 7, Mr. Shivery - 1, Mrs. Grise
- 23, Mr. Butler - 7, Mr. Olivier - 5, Mr. Long - 28, and Mrs. Kuhlman - 23. Mr.
Morris had 25 years of service for purpose of his special retirement benefit. In
addition, Mr. Forsgren had 15 years of service for purposes of his supplemental
pension benefit and would have 28 years of service for such purpose if he were
to retire at age 65.
f. Their rights to indemnity:
No disclosures were made in any system company's most recent proxy
statement or annual report on Form 10-K with respect to the rights to indemnity
of Trustees, Directors or executive officers.
43
ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS
1. There were no expenditures, disbursements or payments made during 2003
in money, goods or services, directly or indirectly to or for the
account of any political party, candidate for public office or holder
of such office, or any committee or agent therefore; and
2. There were no expenditures, disbursements or payments made during 2003
to citizens groups or public relations counsel.
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS
PART I: Intercompany Service Contracts
Serving Receiving Contract
Transaction Company Company Compensation Date
----------- ------- ------- ------------ ----
(Millions of Dollars)
Plant operations and
maintenance services NGS NGC $22.8 2000
Plant operations and
maintenance services NGS HWP $12.0 2000
Plant operations and
maintenance services NGS SESI $ 5.0 2002
Engineering and
construction services NGS Greenport $ 2.6 2003
Electrical maintenance and
construction services Boulos PSNH $ 3.3 2003
Electrical maintenance and
construction services Boulos CL&P $ 1.4 2003
These contracts were all in place at December 31, 2003.
PART II:
See Item 6, Part III(c).
PART III:
None to be reported.
44
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES
PART I:
(a) Identification of Company
1. Northeast Generation Company (NGC)
2. Location:
107 Selden Street
Berlin, CT 06037
3. Business Address:
Same
4. Description:
NGC owns and operates a portfolio of 1,293.1 MW of generating
assets in New England. The table below lists these generating
assets:
Capacity
Asset Location Type (MW)
----- -------- ---- --------
Northfield Mountain Erving, MA Pumped Storage 1,080.0
Cabot Montague, MA Conventional Hydro 58.8
Turners Falls Montague, MA Conventional Hydro 6.4
Falls Village Falls Village, CT Conventional Hydro 11.0
Bulls Bridge New Milford, CT Conventional Hydro 8.4
Rocky River New Milford, CT Conventional Hydro/
Pumped Storage 29.0
Shepaug Southbury, CT Conventional Hydro 42.6
Stevenson Monroe, CT Conventional Hydro 28.9
Robertsville Colebrook, CT Conventional Hydro 0.6
Bantam Litchfield, CT Conventional Hydro 0.3
Scotland Windham, CT Conventional Hydro 2.2
Tunnel Preston, CT Conventional Hydro 2.1
Taftville Norwich, CT Conventional Hydro 2.0
Tunnel ICU Preston, CT Internal Combustion
Unit 20.8
-------
Total 1,293.1
=======
5. System Company that Holds Interest:
Northeast Generation Company, a Connecticut corporation, is a
wholly-owned subsidiary of NU Enterprises, Inc., the holding
company for Northeast Utilities competitive businesses.
6. EWG or FUCO:
EWG
45
(b) Capital Investment in Company by NU, Direct or Indirect
1. Type: Capital contribution
2. Amount: $448.2 million
3. Debt: None
4. Other financial obligations with recourse to NU or another system
company: None
5. Guarantees by NU: None
Transfer of assets to an affiliated EWG or FUCO:
Market value: None
Book value: None
Sale price: None
(c) State the ratio of debt to common equity and earnings as of 12/31/03:
Ratio of debt to common equity as of 12/31/03: 0.887
Ratio of debt to earnings as of 12/31/03: 10.102
(d) Service, Sales or Construction Contracts:
NGC has a Management and Operation Agreement, dated February 1, 2000,
as amended March 1, 2000, with Northeast Generation Services Company
(NGS), an affiliate of NGC, to manage and operate the NGC generating
assets. This agreement is in effect until March 15, 2006. The scope of
services that NGS renders to NGC under this agreement includes
management, operations, maintenance, administration, labor,
consumables, water, supervision, and other goods and services necessary
for the safe, efficient and reliable management, operation and
maintenance of the NGC assets on a daily basis. During 2003, NGC paid
NGS $22.8 million under this contract.
NGC has a Service Contract with Northeast Utilities Service Company
(NUSCO), an affiliate of NGC, dated January 4, 1999. This agreement has
been extended through the year 2003 in a series of one-year extensions.
Under this contract, NUSCO agrees to provide NGC with services such as
corporate and secretarial, financial planning, accounting, taxes,
insurance, budgets, data processing, purchasing, and other
administrative services. During 2003, NGC paid NUSCO $1.5 million under
this contract.
46
PART II.
An organizational chart showing the relationship of the exempt wholesale
generator to other NU system companies is provided as Exhibit G. Required
financial data is provided as Exhibit H.
PART III.
(a) NU's aggregate investment in EWGs and FUCOs, respectively, as of
12/31/03:
EWGs: $448.2 million
FUCOS: $0.0 million
(b) Ratio of aggregate investment to aggregate retained earnings of NU's
public-utility subsidiary companies as of 12/31/03: 0.55
47
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS
Page
----
Financial Statements filed pursuant to the
Public Utility Holding Company Act of 1935
Independent Auditors' Consent F-1
Signature F-5
Financial Statements as of and for the year ended
December 31, 2003
Northeast Utilities and Subsidiaries:
Consolidating Balance Sheet F-7 --F-10
Consolidating Statement of Income F-11--F-12
Consolidating Statement of Retained Earnings F-13--F-14
Consolidating Statement of Capital Surplus, Paid In F-13--F-14
Consolidating Statement of Cash Flows F-15--F-16
The Connecticut Light and Power Company and Subsidiaries:
Consolidating Balance Sheet F-17--F-18
Consolidating Statement of Income F-19
Consolidating Statement of Retained Earnings F-20
Consolidating Statement of Capital Surplus, Paid In F-20
Consolidating Statement of Cash Flows F-21
Public Service Company of New Hampshire and Subsidiaries:
Consolidating Balance Sheet F-23--F-24
Consolidating Statement of Income F-25
Consolidating Statement of Retained Earnings F-26
Consolidating Statement of Capital Surplus, Paid In F-26
Consolidating Statement of Cash Flows F-27
Western Massachusetts Electric Company and Subsidiary:
Consolidating Balance Sheet F-29--F-30
Consolidating Statement of Income F-31
Consolidating Statement of Retained Earnings F-32
Consolidating Statement of Capital Surplus, Paid In F-32
Consolidating Statement of Cash Flows F-33
Holyoke Water Power Company and Subsidiary:
Consolidating Balance Sheet F-35--F-36
Consolidating Statement of Income F-37
Consolidating Statement of Retained Earnings F-38
Consolidating Statement of Capital Surplus, Paid In F-38
Consolidating Statement of Cash Flows F-39
48
Page
----
Yankee Energy System, Inc. and Subsidiaries:
Consolidating Balance Sheet F-41--F-44
Consolidating Statement of Income F-45--F-46
Consolidating Statement of Retained Earnings F-47--F-48
Consolidating Statement of Capital Surplus, Paid In F-47--F-48
Consolidating Statement of Cash Flows F-49--F-50
NU Enterprises, Inc. and Subsidiaries:
Consolidating Balance Sheet F-51--F-54
Consolidating Statement of Income F-55--F-56
Consolidating Statement of Retained Earnings F-57--F-58
Consolidating Statement of Capital Surplus, Paid In F-57--F-58
Consolidating Statement of Cash Flows F-59--F-60
Northeast Generation Services Company and Subsidiaries:
Consolidating Balance Sheet F-61--F-62
Consolidating Statement of Income F-63
Consolidating Statement of Retained Earnings F-64
Consolidating Statement of Capital Surplus, Paid In F-64
Consolidating Statement of Cash Flows F-65
Select Energy, Inc. and Subsidiary:
Consolidating Balance Sheet F-67--F-68
Consolidating Statement of Income F-69
Consolidating Statement of Retained Earnings F-70
Consolidating Statement of Capital Surplus, Paid In F-70
Consolidating Statement of Cash Flows F-71
Select Energy Services, Inc.:
Consolidating Balance Sheet F-73--F-76
Consolidating Statement of Income F-77--F-78
Consolidating Statement of Retained Earnings F-79--F-80
Consolidating Statement of Capital Surplus, Paid In F-79--F-80
Consolidating Statement of Cash Flows F-81--F-82
Notes to Financial Statements F-83
Exhibits E-1--E-30
49
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in this Northeast Utilities (the
"Company") Form U5S Annual Report to the Securities and Exchange Commission,
filed pursuant to the Public Utility Holding Company Act of 1935, for the year
ended December 31, 2003, of our report dated February 23, 2004 relating to the
consolidated financial statements of the Company as of December 31, 2003 and
2002 and for each of the three years in the period ended December 31, 2003
incorporated by reference in the Annual Report on Form 10-K of Northeast
Utilities for the year ended December 31, 2003 (which report expresses an
unqualified opinion and includes an explanatory paragraph relating to the
Company's adoption of Statement of Financial Accounting Standards (SFAS) No.
133, Accounting for Derivative Instruments and Hedging Activities, as amended,
effective January 1, 2001, and its adoption in 2003 of Emerging Issues Task
Force Issue 03-11, Reporting Realized Gains and Losses on Derivative Instruments
that are Subject to Financial Accounting Standards Board (FASB) Statement No.
133 and not "Held for Trading Purposes" as Defined in Issue No. 02-3; and its
adoption of FASB Interpretation No. 46, Consolidation of Variable Interest
Entities, effective July 1, 2003, and SFAS No. 142, Goodwill and Other
Intangible Assets, as of January 1, 2002, respectively).
/s/ DELOITTE & TOUCHE LLP
DELOITTE & T0UCHE LLP
April 29, 2004
Hartford, CT
F-1
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in this Northeast Utilities Form
U5S Annual Report to the Securities and Exchange Commission, filed pursuant to
the Public Utility Holding Company Act of 1935, for the year ended December 31,
2003, of our report dated February 23, 2004 relating to the consolidated
financial statements of The Connecticut Light and Power Company as of December
31, 2003 and 2002 and each of the three years in the period ended December 31,
2003 incorporated by reference in the Annual Report on Form 10-K of The
Connecticut Light and Power Company for the year ended December 31, 2003.
/s/ DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
April 29, 2004
Hartford, CT
F-2
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in this Northeast Utilities Form
U5S Annual Report to the Securities and Exchange Commission, filed pursuant to
the Public Utility Holding Company Act of 1935, for the year ended December 31,
2003, of our report dated February 23, 2004 relating to the consolidated
financial statements of Public Service Company of New Hampshire as of December
31, 2003 and 2002 and for each of the three years in the period ended December
31, 2003 incorporated by reference in the Annual Report on Form 10-K of Public
Service Company of New Hampshire for the year ended December 31, 2003 (which
report expresses an unqualified opinion and includes an explanatory paragraph
relating to the Company's adoption in 2003 of Emerging Issues Task Force Issue
03-11, Reporting Realized Gains and Losses on Derivative Instruments that are
Subject to Financial Accounting Standards Board Statement No. 133 and not "Held
for Trading Purposes" as defined in issue No. 02-3).
/s/ DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
April 29, 2004
Hartford, CT
F-3
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in this Northeast Utilities Form
U5S Annual Report to the Securities and Exchange Commission, filed pursuant to
the Public Utility Holding Company Act of 1935, for the year ended December 31,
2003, of our report dated February 23, 2004 relating to the consolidated
financial statements of Western Massachusetts Electric Company as of and for the
years ended December 31, 2003 and 2002 incorporated by reference in the Annual
Report on Form 10-K of Western Massachusetts Electric Company for the year ended
December 31, 2003.
/s/ DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
April 29, 2004
Hartford, CT
F-4
SIGNATURE
Northeast Utilities, a registered holding company, has duly caused this report
to be signed on its behalf by the undersigned thereunto duly authorized,
pursuant to the requirements of the Public Utility Holding Company Act of 1935.
NORTHEAST UTILITIES
By: /s/ John P. Stack
-----------------------------------------------------
John P. Stack
Vice President - Accounting and
Controller
April 29, 2004
F-5
THIS PAGE INTENTIONALLY LEFT BLANK
F-6
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2003
(Thousands of Dollars)
The Western
Connecticut Public Service Massachusetts
Light and Company of Electric North
Northeast Power Company New Hampshire Company Atlantic
Utilities (consolidated) (consolidated) (consolidated) Energy
(parent) (b) (b) (b) Corporation
------------- ------------- ------------- ------------- -------------
ASSETS
Current Assets:
Cash and cash equivalents $ - $ 5,814 $ 2,737 $ 1 $ -
Unrestricted cash from counterparties - - - - -
Restricted cash - LMP costs - 93,630 - - -
Special deposits - - 30,104 - -
Investments in securitizable assets - 166,465 - - -
Receivables, net 3,116 60,759 67,121 40,103 -
Accounts receivable from affiliated
companies 1,973 73,986 11,291 20 -
Unbilled revenues - 6,961 39,220 10,299 -
Taxes receivable 2,314 - - - -
Notes receivable from affiliated companies 259,600 - - - 5,400
Fuel, materials and supplies,
at average cost - 31,583 54,533 1,584 -
Derivative assets - 115,370 1,510 - -
Prepayments and other 313 12,521 9,945 1,139 121
------------- ------------- ------------- ------------- -------------
267,316 567,089 216,461 53,146 5,521
------------- ------------- ------------- ------------- -------------
Property, Plant and Equipment:
Electric utility - 3,355,794 1,517,513 612,450 -
Gas utility - - - - -
Competitive energy - - - - -
Other - - 5,707 - -
------------- ------------- ------------- ------------- -------------
- 3,355,794 1,523,220 612,450 -
Less: Accumulated depreciation - 1,018,173 635,029 177,803 -
------------- ------------- ------------- ------------- -------------
- 2,337,621 888,191 434,647 -
Construction work in progress - 224,277 37,401 13,124 -
------------- ------------- ------------- ------------- -------------
- 2,561,898 925,592 447,771 -
------------- ------------- ------------- ------------- -------------
Deferred Debits and Other Assets:
Regulatory assets - 1,673,010 969,434 268,180 -
Accumulated deferred income taxes - - - - -
Goodwill - - - - -
Purchased intangible assets, net - - - - -
Prepaid pension - 305,320 - 75,386 -
Investments in subsidiary companies,
at equity 2,544,819 - - - -
Other 14,565 99,577 60,324 19,081 1,462
------------- ------------- ------------- ------------- -------------
2,559,384 2,077,907 1,029,758 362,647 1,462
------------- ------------- ------------- ------------- -------------
Total Assets $ 2,826,700 $ 5,206,894 $ 2,171,811 $ 863,564 $ 6,983
============= ============= ============= ============= =============
Holyoke
Water Power Northeast
Company Utilities
(consolidated) Service
(b) Company
-------------- -------------
ASSETS
Current Assets:
Cash and cash equivalents $ 81 $ 475
Unrestricted cash from counterparties - -
Restricted cash - LMP costs - -
Special deposits - -
Investments in securitizable assets - -
Receivables, net 17 37,679
Accounts receivable from affiliated
companies 4,049 50,401
Unbilled revenues - -
Taxes receivable 263 -
Notes receivable from affiliated companies - 278,075
Fuel, materials and supplies,
at average cost 7,788 -
Derivative assets - -
Prepayments and other 221 5,129
------------- -------------
12,419 371,759
------------- -------------
Property, Plant and Equipment:
Electric utility - -
Gas utility - -
Competitive energy 36,751 -
Other - 111,466
------------- -----------
36,751 111,466
Less: Accumulated depreciation 34,122 76,195
------------- -------------
2,629 35,271
Construction work in progress 3,889 11,184
------------- -------------
6,518 46,455
------------- -------------
Deferred Debits and Other Assets:
Regulatory assets 672 -
Accumulated deferred income taxes - 6,074
Goodwill - -
Purchased intangible assets, net - -
Prepaid pension 2,515 35,819
Investments in subsidiary companies,
at equity - -
Other 1,590 61,276
------------- -------------
4,777 103,169
------------- -------------
Total Assets $ 23,714 $ 521,383
============= =============
Note: Individual columns may not add to Consolidated due to
rounding. The accompanying notes are an integral part
of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
F-7
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2003
(Thousands of Dollars)
Northeast Yankee Energy
Nuclear North Atlantic The The Rocky Systems, Inc.
Energy Energy Service Quinnehtuk River Realty (consolidated)
Company Corporation Company Company (b)
------------- ------------- ------------- ------------- -------------
ASSETS
Current Assets:
Cash and cash equivalents $ 103 $ 9,342 $ 54 $ 130 $ 1,378
Unrestricted cash from counterparties - - - - -
Restricted cash - LMP costs - - - - -
Special deposits - - - - -
Investments in securitizable assets - - - - -
Receivables, net 300 1,460 - - 56,799
Accounts receivable from affiliated
companies 27 - - 759 8,135
Unbilled revenues - - - - 16,051
Taxes receivable 7 835 - - -
Notes receivable from affiliated
companies 32,900 - - - -
Fuel, materials and supplies,
at average cost - - - - 33,541
Derivative assets - - - - 2,962
Prepayments and other - 1,200 4 621 7,373
------------- ------------- ------------- ------------- -------------
33,337 12,837 58 1,510 126,239
------------- ------------- ------------- ------------- -------------
Property, Plant and Equipment:
Electric utility - - - - -
Gas utility - - - - 743,991
Competitive energy - - - - -
Other - - 1,639 103,174 -
------------- ------------- ------------- ------------- -------------
- - 1,639 103,174 743,991
Less: Accumulated depreciation - - 1,373 41,792 223,496
------------- ------------- ------------- ------------- -------------
- - 266 61,382 520,495
Construction work in progress - - - 6,395 41,670
------------- ------------- ------------- ------------- -------------
- - 266 67,777 562,165
------------- ------------- ------------- ------------- -------------
Deferred Debits and Other Assets:
Regulatory assets - - - - 54,765
Accumulated deferred income taxes 26,942 4,516 - - -
Goodwill - - - - 287,591
Purchased intangible assets, net - - - - -
Prepaid pension - - - - 41,204
Investments in subsidiary companies,
at equity - - - - -
Other 51 - 1,141 1,942 10,447
------------- ------------- ------------- ------------- -------------
26,993 4,516 1,141 1,942 394,007
------------- ------------- ------------- ------------- -------------
Total Assets $ 60,330 $ 17,353 $ 1,465 $ 71,229 $ 1,082,411
============= ============= ============= ============= =============
NU
Enterprises,
Inc.
Charter Oak (consolidated)
Energy, Inc. (b) Eliminations Consolidated
------------- ------------- ------------- -------------
ASSETS
Current Assets:
Cash and cash equivalents $ 161 $ 16,921 $ - $ 37,196
Unrestricted cash from counterparties - 46,496 - 46,496
Restricted cash - LMP costs - - - 93,630
Special deposits - 49,016 - 79,120
Investments in securitizable assets - - - 166,465
Receivables, net - 437,541 1 704,893
Accounts receivable from affiliated
companies - 162,942 313,583 -
Unbilled revenues - 53,349 - 125,881
Taxes receivable - 26,945 30,364 -
Notes receivable from affiliated
companies - - 575,975 -
Fuel, materials and supplies,
at average cost - 3,087 (21,960) 154,076
Derivative assets - 181,352 - 301,194
Prepayments and other - 49,243 24,048 63,780
------------- ------------- ------------- -------------
161 1,026,892 922,011 1,772,731
------------- ------------- ------------- -------------
Property, Plant and Equipment:
Electric utility 40 - 19,944 5,465,854
Gas utility - - - 743,990
Competitive energy - 849,202 - 885,953
Other - - - 221,986
------------- ------------- ------------- -------------
40 849,202 19,944 7,317,783
Less: Accumulated depreciation 40 47,810 11,572 2,244,263
------------- ------------- ------------- -------------
- 801,392 8,372 5,073,520
Construction work in progress - 18,453 (1) 356,396
------------- ------------- ------------- -------------
- 819,845 8,371 5,429,916
------------- ------------- ------------- -------------
Deferred Debits and Other Assets:
Regulatory assets - - (7,960) 2,974,022
Accumulated deferred income taxes - - 37,532 -
Goodwill - 32,395 - 319,986
Purchased intangible assets, net - 22,956 - 22,956
Prepaid pension - 1,370 100,908 360,706
Investments in subsidiary companies,
at equity - - 2,544,819 -
Other - 208,845 51,734 428,567
------------- ------------- ------------- -------------
- 265,566 2,727,033 4,106,237
------------- ------------- ------------- -------------
Total Assets $ 161 $ 2,112,303 $ 3,657,415 $11,308,884
============= ============= ============= =============
F-8
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2003
(Thousands of Dollars)
The Western
Connecticut Public Service Massachusetts Holyoke
Light and Company of Electric North Water Power
Northeast Power Company New Hampshire Company Atlantic Company
Utilities (consolidated) (consolidated) (consolidated) Energy (consolidated)
(parent) (b) (b) (b) Corporation (b)
------------- -------------- -------------- -------------- ------------ --------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to banks $ 65,000 $ - $ 10,000 $ 10,000 $ - $ -
Notes payable to affiliated companies - 91,125 48,900 31,400 - 1,400
Long-term debt - current portion 24,000 - - - - -
Accounts payable 1,834 138,155 48,408 10,173 1,263 905
Accounts payable to affiliated companies 25 176,948 13,911 13,789 4 1,591
Accrued taxes - 65,587 2,543 765 537 186
Accrued interest 6,048 10,361 10,894 2,544 - -
Derivative liabilities 3,576 54,566 1,414 - - -
Other 346 49,674 27,740 9,785 - -
------------- -------------- -------------- -------------- ------------ --------------
100,829 586,416 163,810 78,456 1,804 4,082
------------- -------------- -------------- -------------- ------------ --------------
Rate Reduction Bonds - 1,124,779 472,222 132,960 - -
------------- -------------- -------------- -------------- ------------ --------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes 4,261 609,068 338,930 216,547 - 1,496
Accumulated deferred investment
tax credits - 90,885 2,096 3,326 - -
Deferred contractual obligations - 318,043 64,237 86,937 - -
Regulatory liabilities - 752,992 272,081 27,776 - 170
Accrued pension - - 44,766 - - -
Other 1,375 79,935 26,124 8,357 - 3,611
------------- -------------- -------------- -------------- ------------ --------------
5,636 1,850,923 748,234 342,943 - 5,277
------------- -------------- -------------- -------------- ------------ --------------
Capitalization:
Long-Term Debt 456,115 830,149 407,285 157,202 - -
------------- -------------- -------------- -------------- ------------ --------------
Preferred Stock - Non-redeemable - 116,200 - - - -
------------- -------------- -------------- -------------- ------------ --------------
Long-Term Debt from NU Parent - - - - - 9,600
------------- -------------- -------------- -------------- ------------ --------------
Common Stockholders' Equity:
Common shares 751,992 60,352 - 10,866 - 2,400
Capital surplus, paid in 1,108,924 326,629 156,555 69,544 1,000 5,966
Deferred contribution plan -
employee stock ownership plan (73,694) - - - - -
Retained earnings/accumulated deficit 808,932 311,793 223,822 71,677 4,179 (3,611)
Accumulated other comprehensive
income/(loss) 25,991 (347) (117) (84) - -
Treasury stock (358,025) - - - - -
------------- -------------- -------------- -------------- ------------ --------------
Common Stockholders' Equity 2,264,120 698,427 380,260 152,003 5,179 4,755
------------- -------------- -------------- -------------- ------------ --------------
Total Capitalization 2,720,235 1,644,776 787,545 309,205 5,179 14,355
------------- -------------- -------------- -------------- ------------ --------------
Total Liabilities and Capitalization $ 2,826,700 $ 5,206,894 $ 2,171,811 $ 863,564 $ 6,983 $ 23,714
============= ============== ============== ============== ============ ==============
Note: Individual columns may not add to Consolidated due to
rounding. The accompanying notes are an integral part
of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
F-9
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2003
(Thousands of Dollars)
Northeast Northeast
Utilities Nuclear North Atlantic The The Rocky
Service Energy Energy Service Quinnehtuk River Realty
Company Company Corporation Company Company
------------- ------------- ------------------ -------------- ----------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to banks $ - $ - $ - $ - $ -
Notes payable to affiliated companies 278,100 - - 4,000 16,500
Long-term debt - current portion - - - - 1,453
Accounts payable 39,993 134 1 - 170
Accounts payable to affiliated companies 78,995 - 1,439 6 2,067
Accrued taxes 306 - - 49 304
Accrued interest - - - - 40
Derivative liabilities - - - - -
Other 25,950 2 - - 1,308
------------- ------------- ------------------ -------------- ----------------
423,344 136 1,440 4,055 21,842
------------- ------------- ------------------ -------------- ----------------
Rate Reduction Bonds - - - - -
------------- ------------- ------------------ -------------- ----------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes - - - 35 1,563
Accumulated deferred investment
tax credits - - - - -
Deferred contractual obligations - - - - -
Regulatory liabilities - - - - -
Accrued pension - 48,423 7,719 - -
Other 96,261 10,598 6,559 7 16,707
------------- ------------- ------------------ -------------- ----------------
96,261 59,021 14,278 42 18,270
------------- ------------- ------------------ -------------- ----------------
Capitalization:
Long-Term Debt - - - - 3,795
------------- ------------- ------------------ -------------- ----------------
Preferred Stock - Non-redeemable - - - - -
------------- ------------- ------------------ -------------- ----------------
Long-Term Debt from NU Parent - - - - 5,000
------------- ------------- ------------------ -------------- ----------------
Common Stockholders' Equity:
Common shares - - 1 350 10
Capital surplus, paid in 1 322 9 155 20,000
Deferred contribution plan -
employee stock ownership plan - - - - -
Retained earnings/accumulated deficit - 851 1,625 (3,137) 2,312
Accumulated other comprehensive
income/(loss) 1,777 - - - -
Treasury stock - - - - -
------------- ------------- ------------------ -------------- ----------------
Common Stockholders' Equity 1,778 1,173 1,635 (2,632) 22,322
------------- ------------- ------------------ -------------- ----------------
Total Capitalization 1,778 1,173 1,635 (2,632) 31,117
------------- ------------- ------------------ -------------- ----------------
Total Liabilities and Capitalization $ 521,383 $ 60,330 $ 17,353 $ 1,465 $ 71,229
============= ============= ================== ============== ================
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2003
(Thousands of Dollars)
NU
Yankee Energy Enterprises,
Systems, Inc. Inc.
(consolidated) Charter Oak (consolidated)
(b) Energy, Inc. (b) Eliminations Consolidated
-------------- ------------ -------------- ---------------- ----------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to banks $ 20,000 $ - $ - $ - $ 105,000
Notes payable to affiliated companies 70,400 - 34,150 575,975 -
Long-term debt - current portion 950 - 38,533 - 64,936
Accounts payable 30,863 - 496,886 1 768,783
Accounts payable to affiliated companies 5,249 - 19,558 313,583 -
Accrued taxes 11,255 6 427 30,366 51,598
Accrued interest 3,361 - 8,405 - 41,653
Derivative liabilities 172 - 104,961 - 164,689
Other 26,066 - 110,219 1,514 249,576
-------------- ------------ -------------- ---------------- ----------------
168,316 6 813,139 921,439 1,446,235
-------------- ------------ -------------- ---------------- ----------------
Rate Reduction Bonds - - - - 1,729,960
-------------- ------------ -------------- ---------------- ----------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes 89,301 - 59,411 33,258 1,287,354
Accumulated deferred investment
tax credits 6,344 - - - 102,652
Deferred contractual obligations - - - - 469,218
Regulatory liabilities 111,268 - - - 1,164,288
Accrued pension - - - 100,908 -
Other 25,782 - 12,320 40,107 247,526
-------------- ------------ -------------- ---------------- ----------------
232,695 - 71,731 174,273 3,271,038
-------------- ------------ -------------- ---------------- ----------------
Capitalization:
Long-Term Debt 151,266 - 475,518 - 2,481,331
-------------- ------------ -------------- ---------------- ----------------
Preferred Stock - Non-redeemable - - - - 116,200
-------------- ------------ -------------- ---------------- ----------------
Long-Term Debt from NU Parent 5,000 - 178,299 197,899 -
-------------- ------------ -------------- ---------------- ----------------
Common Stockholders' Equity:
Common shares - - - 73,980 751,992
Capital surplus, paid in 484,616 64,344 679,897 1,809,037 1,108,924
Deferred contribution plan -
employee stock ownership plan - - - - (73,694)
Retained earnings/accumulated deficit 40,518 (64,189) (130,220) 455,620 808,932
Accumulated other comprehensive
income/(loss) - - 23,939 25,167 25,991
Treasury stock - - - - (358,025)
-------------- ------------ -------------- ---------------- ----------------
Common Stockholders' Equity 525,134 155 573,616 2,363,804 2,264,120
-------------- ------------ -------------- ---------------- ----------------
Total Capitalization 681,400 155 1,227,433 2,561,703 4,861,651
-------------- ------------ -------------- ---------------- ----------------
Total Liabilities and Capitalization $ 1,082,411 $ 161 $ 2,112,303 $ 3,657,415 $ 11,308,884
============== ============ ============== ================ ================
F-10
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2003
(Thousands of Dollars)
The Western
Connecticut Public Service Massachusetts Holyoke
Light and Company of Electric North Water Power
Northeast Power Company New Hampshire Company Atlantic Company
Utilities (consolidated) (consolidated) (consolidated) Energy (consolidated)
(parent) (b) (b) (b) Corporation (b)
-------- --- --- --- ----------- ---
Operating Revenues $ - $ 2,704,524 $ 888,186 $ 391,178 $ (1,134) $ 41,679
------------- -------------- -------------- -------------- ------------- --------------
Operating Expenses:
Operation-
Fuel, purchased and net
interchange power - 1,602,240 400,518 198,985 - 29,836
Other 7,696 380,039 142,550 59,020 (394) 7,771
Maintenance - 73,066 64,872 15,289 - 4,486
Depreciation - 104,513 43,322 14,104 1,584 613
Amortization - 98,670 37,861 41,695 - (1)
Amortization of rate reduction
bonds - 103,285 40,040 9,847 - -
Taxes other than income taxes 24 142,339 33,407 11,844 (545) 1,049
------------- -------------- -------------- -------------- ------------- --------------
Total operating expenses 7,720 2,504,152 762,570 350,784 645 43,754
------------- -------------- -------------- -------------- ------------- --------------
Operating (Loss)/Income (7,720) 200,372 125,616 40,394 (1,779) (2,075)
------------- -------------- -------------- -------------- ------------- --------------
Interest Expense
Interest on long-term debt 21,180 39,815 15,408 3,860 - (7)
Interest on rate reduction bonds - 70,284 29,081 8,994 - -
Other interest 1,006 508 727 965 6 206
------------- -------------- -------------- -------------- ------------- --------------
Interest expense, net 22,186 110,607 45,216 13,819 6 199
------------- -------------- -------------- -------------- ------------- --------------
Other Income/(Loss), Net
Equity in earnings of subsidiaries 123,647 - - - - -
Other, net 11,041 4,564 (5,003) 3,167 (628) 57
------------- -------------- -------------- -------------- ------------- --------------
Other income/(loss), net 134,688 4,564 (5,003) 3,167 (628) 57
------------- -------------- -------------- -------------- ------------- --------------
Income/(Loss) Before Income Tax
(Benefit)/Expense 104,782 94,329 75,397 29,742 (2,413) (2,217)
Income Tax (Benefit)/Expense (11,629) 25,421 29,773 13,530 (2,254) (751)
------------- -------------- -------------- -------------- ------------- --------------
Income/(Loss) before cumulative
effect of accounting change, net
of tax benefit $ 116,411 $ 68,908 $ 45,624 $ 16,212 $ (159) $ (1,466)
Cumulative effect of accounting
change, net of tax benefit - - - - - -
------------- -------------- -------------- -------------- ------------- --------------
Net Income/(Loss) $ 116,411 $ 68,908 $ 45,624 $ 16,212 $ (159) $ (1,466)
============= ============== ============== ============== ============= ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
F-11
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Northeast Northeast Yankee Energy
Utilities Nuclear North Atlantic The The Rocky System, Inc.
Service Energy Energy Service Quinnehtuk River Realty (consolidated)
Company Company Corporation Company Company (b)
-------- -------- ----------- -------- -------- ---
Operating Revenues $ 249,749 $ - $ - $ 204 $ 8,684 $ 361,486
----------- ----------- -------------- ---------- ------------ --------------
Operating Expenses:
Operation-
Fuel, purchased and net
interchange power - - - - - 216,335
Other 214,693 - (3,003) 26 1,062 61,483
Maintenance 5,213 - - - - 9,256
Depreciation 9,712 - - 55 2,695 22,779
Amortization - - - - - 702
Amortization of rate reduction
bonds - - - - - -
Taxes other than income taxes 9,682 - 511 107 1,416 25,072
----------- ----------- -------------- ---------- ------------ --------------
Total operating expenses 239,300 - (2,492) 188 5,173 335,627
----------- ----------- -------------- ---------- ------------ --------------
Operating (Loss)/Income 10,449 - 2,492 16 3,511 25,859
----------- ----------- -------------- ---------- ------------ --------------
Interest Expense
Interest on long-term debt - - - - 548 12,267
Interest on rate reduction bonds - - - - - -
Other interest 50 - - 44 602 885
----------- ----------- -------------- ---------- ------------ --------------
Interest expense, net 50 - - 44 1,150 13,152
----------- ----------- -------------- ---------- ------------ --------------
Other Income/(Loss), Net
Equity in earnings of subsidiaries - - - - - -
Other, net (11,471) - 82 (26) 81 (6,348)
----------- ----------- -------------- ---------- ------------ --------------
Other income/(loss), net (11,471) - 82 (26) 81 (6,348)
----------- ----------- -------------- ---------- ------------ --------------
Income/(Loss) Before Income Tax
(Benefit)/Expense (1,072) - 2,574 (54) 2,442 6,359
Income Tax (Benefit)/Expense (1,072) - 953 (20) 998 2,043
----------- ----------- -------------- ---------- ------------ --------------
Income/(Loss) before cumulative
effect of accounting change, net
of tax benefit $ - $ - $ 1,621 $ (34) $ 1,444 $ 4,316
Cumulative effect of accounting
change, net of tax benefit - - - - - (4,741)
----------- ----------- -------------- ---------- ------------ --------------
Net Income/(Loss) $ - $ - $ 1,621 $ (34) $ 1,444 $ (425)
=========== =========== ============== ========== ============ ==============
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2003
(Thousands of Dollars)
NU
Enterprises,
Inc.
Charter Oak consolidated)
Energy, Inc. (b) Eliminations Consolidated
------------ --- ------------ ------------
Operating Revenues $ - $ 2,586,355 $ 1,161,756 $ 6,069,156
-------------- -------------- ------------ ------------
Operating Expenses:
Operation-
Fuel, purchased and net
interchange power - 2,166,788 884,287 3,730,416
Other (6) 266,568 237,070 900,437
Maintenance - 69,606 9,757 232,030
Depreciation - 15,320 10,309 204,388
Amortization - 3,749 - 182,675
Amortization of rate reduction
bonds - - - 153,172
Taxes other than income taxes - 17,448 9,682 232,672
-------------- -------------- ------------ ------------
Total operating expenses (6) 2,539,479 1,151,105 5,635,790
-------------- -------------- ------------ ------------
Operating (Loss)/Income 6 46,876 10,651 433,366
-------------- -------------- ------------ ------------
Interest Expense
Interest on long-term debt - 33,187 - 126,259
Interest on rate reduction bonds - - - 108,359
Other interest - 16,180 9,438 11,740
-------------- -------------- ------------ ------------
Interest expense, net - 49,367 9,438 246,358
-------------- -------------- ------------ ------------
Other Income/(Loss), Net
Equity in earnings of subsidiaries - - 123,647 -
Other, net - 2,347 (1,700) (435)
-------------- -------------- ------------ ------------
Other income/(loss), net - 2,347 121,947 (435)
-------------- -------------- ------------ ------------
Income/(Loss) Before Income Tax
(Benefit)/Expense 6 (144) 123,160 186,573
Income Tax (Benefit)/Expense 120 2,631 (118) 59,862
-------------- -------------- ------------ ------------
Income/(Loss) before cumulative
effect of accounting change, net
of tax benefit $ (114) $ (2,775) $ 123,278 $ 126,711
Cumulative effect of accounting
change, net of tax benefit - - - (4,741)
-------------- -------------- ------------ ------------
Net Income/(Loss) $ (114) $ (2,775) $ 123,278 $ 121,970
============== ============== ============ ============
F-12
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2003
(Thousands of Dollars)
The Western
Connecticut Public Service Massachusetts
Light and Company of Electric
Northeast Power Company New Hampshire Company North Atlantic
Utilities (consolidated) (consolidated) (consolidated) Energy
(parent) (b) (b) (b) Corporation
------------ -------------- -------------- -------------- ---------------
Balance at beginning of period $ 765,611 $ 308,554 $ 194,998 $ 77,476 $ 20,338
Additions:
Net income/(loss) 116,411 68,908 45,624 16,212 (159)
------------ -------------- -------------- -------------- ---------------
882,022 377,462 240,622 93,688 20,179
------------ -------------- -------------- -------------- ---------------
Deductions:
Dividends declared:
Preferred stock (at required annual rates):
The Connecticut Light and Power Company - 5,559 - - -
Common shares:
$9.96 per share - 60,110 - - -
$55,813.98 per share - - 16,800 - -
$50.64 per share - - - 22,011 -
$.575 per share 73,090 - - - -
$2,666,666.67 per share - - - - 16,000
------------ -------------- -------------- -------------- ---------------
73,090 65,669 16,800 22,011 16,000
------------ -------------- -------------- -------------- ---------------
Balance at end of period $ 808,932 $ 311,793 $ 223,822 $ 71,677 $ 4,179
============ ============== ============== ============== ===============
Holyoke
Water Power Northeast
Company Nuclear
(consolidated) Energy
(b) Company
-------------- -----------
Balance at beginning of period $ (2,145) $ 851
Additions:
Net income/(loss) (1,466) -
-------------- -----------
(3,611) 851
-------------- -----------
Deductions:
Dividends declared:
Preferred stock (at required annual rates):
The Connecticut Light and Power Company - -
Common shares:
$9.96 per share - -
$55,813.98 per share - -
$50.64 per share - -
$.575 per share - -
$2,666,666.67 per share - -
-------------- -----------
- -
-------------- -----------
Balance at end of period $ (3,611) $ 851
============== ===========
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2003
(Thousands of Dollars)
The Western
Connecticut Public Service Massachusetts
Light and Company of Electric
Northeast Power Company New Hampshire Company North Atlantic
Utilities (consolidated) (consolidated) (consolidated) Energy
(parent) (b) (b) (b) Corporation
------------ -------------- -------------- -------------- ---------------
Balance at beginning of period $1,108,338 $ 327,299 $ 126,937 $ 69,712 $ 1,000
Repurchase of common shares - - - - -
Capital contribution from Northeast Utilities - - 30,000 - -
Issuance of common shares 8,541 - - - -
Capital stock expenses, net 185 186 - - -
Issuance of restricted shares, net (4,110) - - - -
Allocation of benefits - ESOP (4,030) (856) (382) (168) -
------------ -------------- -------------- -------------- ---------------
Balance at end of period $1,108,924 $ 326,629 $ 156,555 $ 69,544 $ 1,000
============ ============== ============== ============== ===============
Holyoke
Water Power Northeast
Company Utilities
(consolidated) Service
(b) Company
-------------- -----------
Balance at beginning of period $ 5,969 $ 1
Repurchase of common shares - -
Capital contribution from Northeast Utilities - -
Issuance of common shares - -
Capital stock expenses, net - -
Issuance of restricted shares, net - -
Allocation of benefits - ESOP (3) -
-------------- -----------
Balance at end of period $ 5,966 $ 1
============== ===========
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
F-13
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Yankee Energy
North Atlantic The The Rocky System, Inc.
Energy Service Quinnehtuk River Realty (consolidated) Charter Oak
Corporation Company Company (b) Energy, Inc.
-------------- ------------ ------------- -------------- ------------
Balance at beginning of period $ 4 $ (3,103) $ 868 $ 40,943 $ (64,075)
Additions:
Net income/(loss) 1,621 (34) 1,444 (425) (114)
-------------- ------------ ------------- -------------- ------------
1,625 (3,137) 2,312 40,518 (64,189)
-------------- ------------ ------------- -------------- ------------
Deductions:
Dividends declared:
Preferred stock (at required annual rates):
The Connecticut Light and Power Company - - - - -
Common shares:
$9.96 per share - - - - -
$55,813.98 per share - - - - -
$50.64 per share - - - - -
$.575 per share - - - - -
$2,666,666.67 per share - - - - -
-------------- ------------ ------------- -------------- ------------
- - - - -
-------------- ------------ ------------- -------------- ------------
Balance at end of period $ 1,625 $ (3,137) $ 2,312 $ 40,518 $ (64,189)
============== ============ ============= ============== ============
NU
Enterprises,
Inc.
(consolidated)
(b) Eliminations Consolidated
-------------- ------------ ------------
Balance at beginning of period $ (127,445) $ 447,263 $ 765,611
Additions:
Net income/(loss) (2,775) 123,278 121,970
-------------- ------------ ------------
(130,220) 570,541 887,581
-------------- ------------ ------------
Deductions:
Dividends declared:
Preferred stock (at required annual rates):
The Connecticut Light and Power Company - - 5,559
Common shares:
$9.96 per share - 60,110 -
$55,813.98 per share - 16,800 -
$50.64 per share - 22,011 -
$.575 per share - - 73,090
$2,666,666.67 per share - 16,000 -
-------------- ------------ ------------
- 114,921 78,649
-------------- ------------ ------------
Balance at end of period $ (130,220) $ 455,620 $ 808,932
============== ============ ============
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Northeast Yankee Energy
Nuclear North Atlantic The The Rocky System, Inc.
Energy Energy Service Quinnehtuk River Realty (consolidated)
Company Corporation Company Company (b)
----------- -------------- ---------- ------------ --------------
Balance at beginning of period $ 15,350 $ 9 $ 155 $ - $ 484,769
Repurchase of common shares (15,028) - - - -
Capital contribution from Northeast Utilities - - - 20,000 -
Issuance of common shares - - - - -
Capital stock expenses, net - - - - -
Issuance of restricted shares, net - - - - -
Allocation of benefits - ESOP - - - - (153)
----------- ------------- --------- ------------ --------------
Balance at end of period $ 322 $ 9 $ 155 $ 20,000 $ 484,616
=========== ============= ========= ============ ==============
NU
Enterprises,
Inc.
Charter Oak (consolidated)
Energy, Inc. (b) Eliminations Consolidated
------------ -------------- ------------ ------------
Balance at beginning of period $ 64,344 $ 662,976 $1,758,522 $1,108,338
Repurchase of common shares - - (15,028) -
Capital contribution from Northeast Utilities - 17,200 67,200 -
Issuance of common shares - - - 8,541
Capital stock expenses, net - - 186 185
Issuance of restricted shares, net - - - (4,110)
Allocation of benefits - ESOP - (279) (1,843) (4,030)
------------ -------------- ------------ ------------
Balance at end of period $ 64,344 $ 679,897 $1,809,037 $1,108,924
============ ============== ============ ============
F-14
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2003
(Thousands of Dollars)
The Western
Connecticut Public Service Massachusetts
Northeast Light and Company of Electric
Utilities Power Company New Hampshire Company
(parent) (consolidated) (consolidated) (consolidated)
(b) (b) (b)
------------- -------------- -------------- --------------
Operating Activities:
Net income/(loss) $ 116,411 $ 68,908 $ 45,624 $ 16,212
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation - 104,513 43,322 14,104
Deferred income taxes and investment tax credits, net (411) (118,425) (6,670) (14,315)
Amortization of regulatory assets - 98,670 37,861 41,695
Amortization of rate reduction bonds - 103,285 40,040 9,847
Amortization of recoverable energy costs - 19,191 23,388 598
Prepaid pension - (29,147) - (7,870)
Cumulative effect of accounting change - - - -
Regulatory overrecoveries/(refunds) - 275,015 10,778 6,265
Net other sources/(uses) of cash 6,794 (97,544) (29,046) (15,683)
Changes in current assets and liabilities:
Restricted cash - LMP costs - (93,630) - -
Unrestricted cash from counterparties - - - -
Receivables and unbilled revenues, net (1,918) 3,156 (7,757) 7,079
Fuel, materials and supplies - 796 (5,351) 237
Investments in securitizable assets - 12,443 - -
Other current assets (excludes cash) (6,130) 6,886 87 330
Accounts payable (716) 22,309 3,723 14
Accrued taxes (2,460) 31,237 (62,774) (3,569)
Other current liabilities 17,340 1,385 (10,981) 2,266
------------- -------------- -------------- --------------
Net cash flows provided by/(used in) operating activities 128,910 409,048 82,244 57,210
------------- -------------- -------------- --------------
Investing Activities:
Investments in plant:
Electric, gas and other utility plant - (314,628) (105,626) (30,386)
Competitive energy assets - - - -
------------- -------------- -------------- --------------
Cash flows used for investments in plant - (314,628) (105,626) (30,386)
NU system Money Pool borrowing/(lending) 29,500 93,025 71,900 (54,500)
Buyout/buydown of IPP contracts - - (20,437) -
CVEC acquisition special deposit - - (30,104) -
Other investment activities (218,135) 5,448 15,066 1,377
------------- -------------- -------------- --------------
Net cash flows (used in)/provided by investing activities (188,635) (216,155) (69,201) (83,509)
------------- -------------- -------------- --------------
Financing Activities:
Issuance of common shares 13,654 - - -
Repurchase of common shares (20,537) - - -
Issuance of long-term debt 150,000 - - 55,000
Retirement of rate reduction bonds - (120,949) (38,619) (9,782)
Increase in short-term debt 16,000 - 10,000 3,000
Reacquisitions and retirements of long-term debt (23,000) - - -
Advance from parent - - - -
Capital contribution from Northeast Utilities - - 30,000 -
Cash dividends on preferred stock - (5,559) - -
Cash dividends on common shares (73,090) (60,110) (16,800) (22,011)
Other financing activities (3,927) (620) (206) (30)
------------- -------------- -------------- --------------
Net cash flows provided by/(used in) financing activities 59,100 (187,238) (15,625) 26,177
------------- -------------- -------------- --------------
Net (decrease)/increase in cash for the year (625) 5,655 (2,582) (122)
Cash and cash equivalents - beginning of year 625 159 5,319 123
------------- -------------- -------------- --------------
Cash and cash equivalents - end of year $ - $ 5,814 $ 2,737 $ 1
============= ============== ============== ==============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 21,496 $ 112,258 $ 45,639 $ 13,560
============= ============== ============== ==============
Income taxes $ (16,818) $ 105,167 $ 97,165 $ 31,807
============= ============== ============== ==============
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2003
(Thousands of Dollars)
North Holyoke
Atlantic Water Power
Energy Company
Corporation (consolidated)
(b)
------------- --------------
Operating Activities:
Net income/(loss) $ (159) $ (1,466)
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 1,584 614
Deferred income taxes and investment tax credits, net - (189)
Amortization of regulatory assets - (1)
Amortization of rate reduction bonds - -
Amortization of recoverable energy costs - -
Prepaid pension - -
Cumulative effect of accounting change - -
Regulatory overrecoveries/(refunds) (167) (869)
Net other sources/(uses) of cash (1,566) 1,053
Changes in current assets and liabilities:
Restricted cash - LMP costs - -
Unrestricted cash from counterparties - -
Receivables and unbilled revenues, net 36 (535)
Fuel, materials and supplies - (427)
Investments in securitizable assets - -
Other current assets (excludes cash) (121) 565
Accounts payable (20,278) (862)
Accrued taxes (10,313) 24
Other current liabilities (6) (34)
------------- --------------
Net cash flows provided by/(used in) operating activities (30,990) (2,127)
------------- --------------
Investing Activities:
Investments in plant:
Electric, gas and other utility plant - -
Competitive energy assets - (1,819)
------------- --------------
Cash flows used for investments in plant - (1,819)
NU system Money Pool borrowing/(lending) 37,000 3,500
Buyout/buydown of IPP contracts - -
CVEC acquisition special deposit - -
Other investment activities 9,990 447
------------- --------------
Net cash flows (used in)/provided by investing activities 46,990 2,128
------------- --------------
Financing Activities:
Issuance of common shares - -
Repurchase of common shares - -
Issuance of long-term debt - -
Retirement of rate reduction bonds - -
Increase in short-term debt - -
Reacquisitions and retirements of long-term debt - -
Advance from parent - -
Capital contribution from Northeast Utilities - -
Cash dividends on preferred stock - -
Cash dividends on common shares (16,000) -
Other financing activities - -
------------- --------------
Net cash flows provided by/(used in) financing activities (16,000) -
------------- --------------
Net (decrease)/increase in cash for the year - 1
Cash and cash equivalents - beginning of year - 80
------------- --------------
Cash and cash equivalents - end of year $ - $ 81
============= ==============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ - $ 255
============= ==============
Income taxes $ 8,423 $ (948)
============= ==============
Note: Individual columns may not add to Consolidated
due to rounding. The accompanying notes are
an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
F-15
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2003
(Thousands of Dollars)
North
Northeast Northeast Atlantic The Rocky
Utilities Nuclear Energy The River
Service Energy Service Quinnehtuk Realty
Company Company Corporation Company Company
---------- ----------- ----------- ------------ -----------
Operating Activities:
Net income/(loss) $ - $ - $ 1,621 $ (34) $ 1,444
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 9,712 - - 55 2,695
Deferred income taxes and investment tax credits, net (2,383) - 740 24 (45)
Amortization of regulatory assets - - - - -
Amortization of rate reduction bonds - - - - -
Amortization of recoverable energy costs - - - -
Prepaid pension (1,624) - - - -
Cumulative effect of accounting change - - - - -
Regulatory overrecoveries/(refunds) - - - - -
Net other sources/(uses) of cash 3,321 187 887 29 (1,414)
Changes in current assets and liabilities:
Restricted cash - LMP costs - - - - -
Unrestricted cash from counterparties - - - - -
Receivables and unbilled revenues, net (33,255) 400 13,405 - (288)
Fuel, materials and supplies 151 - 74 - -
Investments in securitizable assets - - - - -
Other current assets (excludes cash) 7,601 (7) (405) (4) 35
Accounts payable 37,359 (4,101) (5,858) (15) (385)
Accrued taxes 306 (799) (5,123) (84) 93
Other current liabilities 13,432 (3) (8,629) - (36)
---------- ----------- ----------- ------------ -----------
Net cash flows provided by/(used in) operating activities 34,620 (4,323) (3,288) (29) 2,099
---------- ----------- ----------- ------------ -----------
Investing Activities:
Investments in plant:
Electric, gas and other utility plant (18,657) - - - (8,525)
Competitive energy assets - - - - -
---------- ----------- ----------- ------------ -----------
Cash flows used for investments in plant (18,657) - - - (8,525)
NU system Money Pool borrowing/(lending) 25 19,400 - - (11,150)
Buyout/buydown of IPP contracts - - - - -
CVEC acquisition special deposit - - - - -
Other investment activities (15,954) - - - -
---------- ----------- ----------- ------------ -----------
Net cash flows (used in)/provided by investing activities (34,586) 19,400 - - (19,675)
---------- ----------- ----------- ------------ -----------
Financing Activities:
Issuance of common shares - - - - -
Repurchase of common shares - (15,028) - - -
Issuance of long-term debt - - - - -
Retirement of rate reduction bonds - - - - -
Increase in short-term debt - - - - -
Reacquisitions and retirements of long-term debt - - - - (2,294)
Advance from parent - - - - -
Capital contribution from Northeast Utilities - - - - 20,000
Cash dividends on preferred stock - - - - -
Cash dividends on common shares - - - - -
Other financing activities (9) - - - -
---------- ----------- ----------- ------------ -----------
Net cash flows provided by/(used in) financing activities (9) (15,028) - - 17,706
---------- ----------- ----------- ------------ -----------
Net (decrease)/increase in cash for the year 25 49 (3,288) (29) 130
Cash and cash equivalents - beginning of year 450 54 12,630 83 -
---------- ----------- ----------- ------------ -----------
Cash and cash equivalents - end of year $ 475 $ 103 $ 9,342 $ 54 $ 130
========== =========== =========== ============ ===========
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ - $ - $ - $ 43 $ 1,169
========== =========== =========== ============ ===========
Income taxes $ (8,379) $ (622) $ 6,399 $ 12 $ 956
========== =========== =========== ============ ===========
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2003
(Thousands of Dollars)
NU
Yankee Energy Enterprises,
System, Inc. Charter Oak Inc.
(consolidated) Energy, Inc. (consolidated)
(b) (b)
-------------- -------------- --------------
Operating Activities:
Net income/(loss) $ 4,316 $ (114) $ (2,775)
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 22,779 - 15,320
Deferred income taxes and investment tax credits, net 10,433 80 11,510
Amortization of regulatory assets 702 - 3,749
Amortization of rate reduction bonds - - -
Amortization of recoverable energy costs 697 - -
Prepaid pension 2,126 - 1,440
Cumulative effect of accounting change (4,741) - -
Regulatory overrecoveries/(refunds) (13,940) - -
Net other sources/(uses) of cash 357 - (46,355)
Changes in current assets and liabilities:
Restricted cash - LMP costs - - -
Unrestricted cash from counterparties - - (29,606)
Receivables and unbilled revenues, net 18,774 - (38,997)
Fuel, materials and supplies (16,839) - (217)
Investments in securitizable assets - - -
Other current assets (excludes cash) (3,437) - (44,671)
Accounts payable (4,935) - 68,764
Accrued taxes 2,499 (78) (19,386)
Other current liabilities 959 - 98,243
-------------- -------------- --------------
Net cash flows provided by/(used in) operating activities 19,750 (112) 17,019
-------------- -------------- --------------
Investing Activities:
Investments in plant:
Electric, gas and other utility plant (55,226) - (1)
Competitive energy assets - - (15,888)
-------------- -------------- --------------
Cash flows used for investments in plant (55,226) - (15,889)
NU system Money Pool borrowing/(lending) 2,000 - (190,700)
Buyout/buydown of IPP contracts - - -
CVEC acquisition special deposit - - -
Other investment activities 11,562 - (10,017)
-------------- -------------- --------------
Net cash flows (used in)/provided by investing activities (41,664) - (216,606)
-------------- -------------- --------------
Financing Activities:
Issuance of common shares - - -
Repurchase of common shares - - -
Issuance of long-term debt - - 63,368
Retirement of rate reduction bonds - - -
Increase in short-term debt 20,000 - -
Reacquisitions and retirements of long-term debt (2,350) - (37,956)
Advance from parent 5,000 - 144,000
Capital contribution from Northeast Utilities - - 17,200
Cash dividends on preferred stock - - -
Cash dividends on common shares - - -
Other financing activities - - -
-------------- -------------- --------------
Net cash flows provided by/(used in) financing activities 22,650 - 186,612
-------------- -------------- --------------
Net (decrease)/increase in cash for the year 736 (112) (12,975)
Cash and cash equivalents - beginning of year 642 273 29,896
-------------- -------------- --------------
Cash and cash equivalents - end of year $ 1,378 $ 161 $ 16,921
============== ============== ==============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 13,104 $ - $ 43,179
============== ============== ==============
Income taxes $ (9,984) $ 118 $ 35,048
============== ============== ==============
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Eliminations Consolidated
------------ ------------
Operating Activities:
Net income/(loss) $ 123,278 $ 126,711
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 10,309 204,388
Deferred income taxes and investment tax credits, net 954 (120,603)
Amortization of regulatory assets - 182,675
Amortization of rate reduction bonds - 153,172
Amortization of recoverable energy costs - 43,874
Prepaid pension (3,260) (31,816)
Cumulative effect of accounting change - (4,741)
Regulatory overrecoveries/(refunds) 3,367 273,715
Net other sources/(uses) of cash (29,966) (149,009)
Changes in current assets and liabilities:
Restricted cash - LMP costs - (93,630)
Unrestricted cash from counterparties - (29,606)
Receivables and unbilled revenues, net (102,453) 62,551
Fuel, materials and supplies 12,648 (34,223)
Investments in securitizable assets - 12,443
Other current assets (excludes cash) (14,404) (24,863)
Accounts payable 102,453 (7,436)
Accrued taxes 19,642 (90,069)
Other current liabilities 13,897 100,039
------------ ------------
Net cash flows provided by/(used in) operating activities 136,465 573,572
------------ ------------
Investing Activities:
Investments in plant:
Electric, gas and other utility plant (799) (532,251)
Competitive energy assets - (17,707)
------------ ------------
Cash flows used for investments in plant (799) (549,958)
NU system Money Pool borrowing/(lending) - -
Buyout/buydown of IPP contracts - (20,437)
CVEC acquisition special deposit - (30,104)
Other investment activities (221,917) 21,698
------------ ------------
Net cash flows (used in)/provided by investing activities (222,716) (578,801)
------------ ------------
Financing Activities:
Issuance of common shares - 13,654
Repurchase of common shares (15,028) (20,537)
Issuance of long-term debt - 268,368
Retirement of rate reduction bonds - (169,352)
Increase in short-term debt - 49,000
Reacquisitions and retirements of long-term debt - (65,600)
Advance from parent 149,000 -
Capital contribution from Northeast Utilities 67,200 -
Cash dividends on preferred stock - (5,559)
Cash dividends on common shares (114,921) (73,090)
Other financing activities - (4,792)
------------ ------------
Net cash flows provided by/(used in) financing activities 86,251 (7,908)
------------ ------------
Net (decrease)/increase in cash for the year - (13,137)
Cash and cash equivalents - beginning of year - 50,333
------------ ------------
Cash and cash equivalents - end of year $ - $ 37,196
============ ============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 9,388 $ 241,315
============ ============
Income taxes $ - $ 248,344
============ ============
F-16
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Balance Sheet (b)
Assets
December 31, 2003
(Thousands of Dollars)
The
Connecticut CL&P
Light and Receivables CL&P
Power Company Corporation Funding LLC Eliminations Consolidated
-------------- ------------- --------------- --------------- ----------------
ASSETS
------
Current Assets:
Cash $ 5,813 $ - $ 1 $ - $ 5,814
Restricted cash - LMP costs 93,630 - - - 93,630
Investments in securitizable assets 7,382 246,465 - 87,382 166,465
Receivables, net 60,759 - - - 60,759
Accounts receivable from affiliated companies 155,670 143,602 - 225,286 73,986
Unbilled revenues 6,961 - - - 6,961
Taxes receivable - 225 - 225 -
Notes receivable from affiliated companies - - 1,124,779 1,124,779 -
Materials and supplies, at average cost 31,583 - - - 31,583
Derivative assets 115,370 - - - 115,370
Prepayments and other 12,521 - - - 12,521
-------------- ------------- --------------- --------------- ----------------
489,689 390,292 1,124,780 1,437,672 567,089
-------------- ------------- --------------- --------------- ----------------
Property, Plant and Equipment:
Electric utility 3,355,794 - - - 3,355,794
Less: Accumulated depreciation 1,018,173 - - - 1,018,173
-------------- ------------- --------------- --------------- ----------------
2,337,621 - - - 2,337,621
Construction work in progress 224,277 - - - 224,277
-------------- ------------- --------------- --------------- ----------------
2,561,898 - - - 2,561,898
-------------- ------------- --------------- --------------- ----------------
Deferred Debits and Other Assets:
Regulatory assets 1,673,010 - - - 1,673,010
Prepaid pension 305,320 - - - 305,320
Investments in subsidiary companies, at equity 81,487 - - 81,487 -
Other 80,864 - 18,713 - 99,577
-------------- ------------- --------------- --------------- ----------------
2,140,681 - 18,713 81,487 2,077,907
-------------- ------------- --------------- --------------- ----------------
Total Assets $ 5,192,268 $ 390,292 $ 1,143,493 $ 1,519,159 $ 5,206,894
============== ============= =============== =============== ================
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not included are the following inactive subsidiaries: Electric Power,
Incorporated, The Nutmeg Power Company, The Connecticut Steam Company and
CL&P Capital L.P.
(b) Not covered by auditors' report.
F-17
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Balance Sheet (b)
Capitalization and Liabilities
December 31, 2003
(Thousands of Dollars)
The
Connecticut CL&P
Light and Receivables CL&P
Power Company Corporation Funding LLC Eliminations Consolidated
-------------- ------------- -------------- --------------- ----------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to banks $ - $ 80,000 $ - $ 80,000 $ -
Notes payable to affiliated companies 1,215,904 - - 1,124,779 91,125
Accounts payable 134,821 3,334 - - 138,155
Accounts payable to affiliated companies 176,948 40,735 4 40,739 176,948
Accrued taxes 65,812 - - 225 65,587
Accrued interest 10,361 31,160 - 31,160 10,361
Derivative liabilities 54,566 - - - 54,566
Other 38,157 - 11,517 - 49,674
--------------- ------------- --------------- --------------- ----------------
1,696,569 155,229 11,521 1,276,903 586,416
--------------- ------------- --------------- --------------- ----------------
Rate Reduction Bonds - - 1,124,779 - 1,124,779
--------------- ------------- --------------- --------------- ----------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes 609,068 - - - 609,068
Accumulated deferred investment tax credits 90,885 - - - 90,885
Deferred contractual obligations 318,043 - - - 318,043
Regulatory liabilities 752,992 - - - 752,992
Other 79,935 - - - 79,935
--------------- ------------- --------------- --------------- ----------------
1,850,923 - - - 1,850,923
--------------- ------------- --------------- --------------- ----------------
Capitalization:
Long-Term Debt 830,149 - - - 830,149
--------------- ------------- --------------- --------------- ----------------
Preferred Stock - Non-redeemable 116,200 - - - 116,200
--------------- ------------- --------------- --------------- ----------------
Common Stockholder's Equity:
Common stock 60,352 - - - 60,352
Capital surplus, paid in 326,629 160,829 7,193 168,022 326,629
Retained earnings 311,793 74,234 - 74,234 311,793
Accumulated other comprehensive loss (347) - - - (347)
--------------- ------------- --------------- --------------- ----------------
Common Stockholder's Equity 698,427 235,063 7,193 242,256 698,427
--------------- ------------- --------------- --------------- ----------------
Total Capitalization 1,644,776 235,063 7,193 242,256 1,644,776
--------------- ------------- --------------- --------------- ----------------
Total Liabilities and Capitalization $ 5,192,268 $ 390,292 $ 1,143,493 $ 1,519,159 $ 5,206,894
=============== ============= =============== =============== ================
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not included are the following inactive subsidiaries: Electric Power,
Incorporated, The Nutmeg Power Company, The Connecticut Steam Company and
CL&P Capital L.P.
(b) Not covered by auditors' report.
F-18
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Statement of Income (b)
Year Ended December 31, 2003
(Thousands of Dollars)
The Connecticut CL&P
Light and Power Receivables CL&P
Company Corporation Funding LLC Eliminations Consolidated
---------------- ------------- ------------- ------------- --------------
Operating Revenues $ 2,704,524 $ - $ 192,327 $ 192,327 $ 2,704,524
---------------- ------------- ------------- ------------- --------------
Operating Expenses:
Operation- 1,602,240
Fuel, purchased and net interchange power 1,602,240 - - -
Other 379,426 613 192,327 192,327 380,039
Maintenance 73,066 - - - 73,066
Depreciation 104,513 - - - 104,513
Amortization of regulatory assets, net 98,670 - - - 98,670
Amortization of rate reduction bonds 103,285 - - - 103,285
Taxes other than income taxes 142,339 - - - 142,339
---------------- ------------- ------------- ------------- --------------
Total operating expenses 2,503,539 613 192,327 192,327 2,504,152
---------------- ------------- ------------- ------------- --------------
Operating Income/(Loss) 200,985 (613) - - 200,372
---------------- ------------- ------------- ------------- --------------
Interest Expense:
Interest on long-term debt 39,815 - - - 39,815
Interest on rate reduction bonds 70,284 - - - 70,284
Other interest 508 610 - 610 508
---------------- ------------- ------------- ------------- --------------
Interest expense, net 110,607 610 - 610 110,607
---------------- ------------- ------------- ------------- --------------
Other (Loss)/Income, Net
Equity in earnings of subsidiaries 16,640 - - 16,640 -
Other, net (24,181) 29,355 - 610 4,564
---------------- ------------- ------------- ------------- --------------
Other (loss)/income, net (7,541) 29,355 - 17,250 4,564
---------------- ------------- ------------- ------------- --------------
Income Before Income Tax Expense 82,837 28,132 - 16,640 94,329
Income Tax Expense 13,929 11,492 - - 25,421
---------------- ------------- ------------- ------------- --------------
Net Income $ 68,908 $ 16,640 $ - $ 16,640 $ 68,908
================ ============= ============= ============= ==============
Note: Individual columns may not add to Consolidated due to
rounding. The accompanying notes are an integral part of these
financial statements.
(a) Not included are the following inactive subsidiaries: Electric Power,
Incorporated, The Nutmeg Power Company, The Connecticut Steam Company and
CL&P Capital L.P.
(b) Not covered by auditors' report.
F-19
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Statement of Retained Earnings (b)
Year Ended December 31, 2003
(Thousands of Dollars)
The Connecticut CL&P
Light and Power Receivables CL&P
Company Corporation Funding LLC Eliminations Consolidated
---------------- ------------- ------------- ------------ --------------
Balance at beginning of period $ 308,554 $ 57,594 $ - $ 57,594 $ 308,554
Additions:
Net income 68,908 16,640 - 16,640 68,908
---------------- ------------- ------------- ------------ --------------
377,462 74,234 - 74,234 377,462
---------------- ------------- ------------- ------------ --------------
Deductions:
Dividends declared:
Preferred stock (at required annual rates) 5,559 - - - 5,559
Common stock $9.96 per share 60,110 - - - 60,110
---------------- ------------- ------------- ------------ --------------
65,669 - - - 65,669
---------------- ------------- ------------- ------------ --------------
Balance at end of period $ 311,793 $ 74,234 $ - $ 74,234 $ 311,793
================ ============= ============= ============ ==============
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Statement of Capital Surplus, Paid In (b)
Year Ended December 31, 2003
(Thousands of Dollars)
The Connecticut CL&P
Light and Power Receivables CL&P
Company Corporation Funding LLC Eliminations Consolidated
---------------- ------------- ------------- ------------ --------------
Balance at beginning of period $ 327,299 $ 200,829 $ 7,193 $ 208,022 $ 327,299
Allocation of benefits - ESOP (856) - - - (856)
Borrowing from The Connecticut
Light and Power Company - (40,000) - (40,000) -
Capital stock expenses, net 186 - - - 186
---------------- ------------- ------------- ------------ --------------
Balance at end of period $ 326,629 $ 160,829 $ 7,193 $ 168,022 $ 326,629
================ ============= ============= ============ ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not included are the following inactive subsidiaries: Electric Power,
Incorporated, The Nutmeg Power Company, The Connecticut Steam Company and
CL&P Capital, L.P.
(b) Not covered by auditors' report.
F-20
THE CONNECTICUT LIGHT AND POWER COMPANY AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a) (b)
Year Ended December 31, 2003
(Thousands of Dollars)
The
Connecticut
Light and CL&P
Power Receivables CL&P
Company Corporation Funding LLC Eliminations Consolidated
------------ -------------- -------------- ------------- ------------
Operating Activities:
Net income $ 68,908 $ 16,640 $ - $ 16,640 $ 68,908
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 104,513 - - - 104,513
Deferred income taxes and investment tax credits, net (118,425) - - - (118,425)
Amortization of regulatory assets 98,670 - - - 98,670
Amortization of rate reduction bonds 103,285 - - - 103,285
Amortization of recoverable energy costs 19,191 - - - 19,191
Prepaid pension (29,147) - - - (29,147)
Regulatory overrecoveries 275,015 - - - 275,015
Net other uses of cash (97,543) - - - (97,544)
Changes in current assets and liabilities:
Restricted cash - LMP costs (93,630) - - - (93,630)
Receivables and unbilled revenues, net (7,488) (32,495) - (43,137) 3,156
Materials and supplies 796 - - - 796
Investments in securitizable assets 41,798 (27,557) - 1,798 12,443
Other current assets (excludes cash) 6,886 (225) - (225) 6,886
Accounts payable 18,975 44,069 (5) 40,730 22,309
Accrued taxes 32,662 (1,200) - 225 31,237
Other current liabilities (2,776) 610 4,161 609 1,385
------------ -------------- -------------- ------------- ------------
Net cash flows provided by/(used in) operating activities 421,690 (158) 4,156 16,640 409,048
------------ -------------- -------------- ------------- ------------
Investing Activities:
Investments in plant (314,628) - - - (314,628)
NU system money pool (lending)/borrowing (27,924) - 120,949 - 93,025
Other investment activities (7,036) - (4,156) (16,640) 5,448
------------ -------------- -------------- ------------- ------------
Net cash flows (used in)/provided by investing activities (349,588) - 116,793 (16,640) (216,155)
------------ -------------- -------------- ------------- ------------
Financing Activities:
Retirement of rate reduction bonds - - (120,949) - (120,949)
Increase in short-term debt - 40,000 - 40,000 -
Borrowing from The Connecticut Light and Power Company - (40,000) - (40,000) -
Cash dividends on preferred stock (5,559) - - - (5,559)
Cash dividends on common stock (60,110) - - - (60,110)
Other financing activities (620) - - - (620)
------------ -------------- -------------- ------------- ------------
Net cash flows used in financing activities (66,289) - (120,949) - (187,238)
------------ -------------- -------------- ------------- ------------
Net increase/(decrease) in cash for the year 5,813 (158) - - 5,655
Cash - beginning of year - 158 1 - 159
------------ -------------- -------------- ------------- ------------
Cash - end of year $ 5,813 $ - $ 1 $ - $ 5,814
============ ============== ============== ============= ============
Supplemental Cash Flow Information:
Cash paid during the year for:
Interest, net of amounts capitalized $ 112,258 $ - $ - $ - $ 112,258
============ ============== ============== ============= ============
Income taxes $ 92,250 $ 12,917 $ - $ - $ 105,167
============ ============== ============== ============= ============
Note: Individual columns may not add to Consolidated
due to rounding. The accompanying notes are
an integral part of these financial statements.
(a) Not included are the following inactive subsidiaries: Electric Power,
Incorporated, The Nutmeg Power Company, The Connecticut Steam Company and CL&P
Capital L.P.
(b) Not covered by auditors' report.
F-21
THIS PAGE INTENTIONALLY LEFT BLANK
F-22
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2003
(Thousands of Dollars)
Public Service
Company of PSNH PSNH
New Hampshire Funding LLC Funding LLC 2 Properties, Inc. Eliminations
-------------- ------------- -------------- ---------------- --------------
ASSETS
------
Current Assets:
Cash $ - $ 1 $ 1 $ 2,735 $ -
Special deposits 30,104 - - - -
Receivables, net 67,118 - - 2 -
Accounts receivable from affiliated companies 11,525 - - 102 337
Unbilled revenues 39,220 - - - -
Notes receivable from affiliated companies - 427,495 37,896 - 465,390
Fuel, materials, and supplies, at average cost 54,533 - - - -
Derivative assets 1,510 - - - -
Prepayments and other 9,925 - - 21 -
--------------- ------------- -------------- ---------------- --------------
213,935 427,496 37,897 2,860 465,727
--------------- ------------- -------------- ---------------- --------------
Property, Plant and Equipment:
Electric utility 1,517,313 - - 201 -
Other - - - 5,706 -
--------------- ------------- -------------- ---------------- --------------
1,517,313 - - 5,907 -
Less: Accumulated depreciation 632,684 - - 2,345 -
--------------- ------------- -------------- ---------------- --------------
884,629 - - 3,562 -
Construction work in progress 37,401 - - - -
--------------- ------------- -------------- ---------------- --------------
922,030 - - 3,562 -
--------------- ------------- -------------- ---------------- --------------
Deferred Debits and Other Assets:
Regulatory assets 969,434 - - - -
Investments in subsidiary companies, at equity 9,789 - - - 9,789
Other 30,248 26,707 3,305 172 108
--------------- ------------- -------------- ---------------- --------------
1,009,471 26,707 3,305 172 9,897
--------------- ------------- -------------- ---------------- --------------
Total Assets $ 2,145,436 $ 454,203 $ 41,202 $ 6,594 $ 475,624
=============== ============= ============== ================ ==============
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2003
(Thousands of Dollars)
Consolidated
---------------
ASSETS
------
Current Assets:
Cash $ 2,737
Special deposits 30,104
Receivables, net 67,121
Accounts receivable from affiliated companies 11,291
Unbilled revenues 39,220
Notes receivable from affiliated companies -
Fuel, materials, and supplies, at average cost 54,533
Derivative assets 1,510
Prepayments and other 9,945
---------------
216,461
---------------
Property, Plant and Equipment:
Electric utility 1,517,513
Other 5,707
---------------
1,523,220
Less: Accumulated depreciation 635,029
---------------
888,191
Construction work in progress 37,401
---------------
925,592
---------------
Deferred Debits and Other Assets:
Regulatory assets 969,434
Investments in subsidiary companies, at equity -
Other 60,324
---------------
1,029,758
---------------
Total Assets $ 2,171,811
===============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-23
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2003
(Thousands of Dollars)
Public Service
Company of PSNH PSNH
New Hampshire Funding LLC Funding LLC 2 Properties, Inc. Eliminations
--------------- ------------- -------------- ----------------- --------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to banks $ 10,000 $ - $ - $ - $ -
Notes payable to affiliated companies 514,290 - - - 465,390
Accounts payable 48,382 - - 26 -
Accounts payable to affiliated companies 14,002 194 17 34 337
Accrued taxes 2,421 - - 122 -
Accrued interest 2,358 7,989 547 - -
Unremitted rate reduction bond collections - 9,881 1,170 - 11,051
Derivative liabilities 1,414 - - - -
Other 16,682 4 4 - (11,051)
--------------- ------------- -------------- ---------------- --------------
609,549 18,068 1,738 182 465,727
--------------- ------------- -------------- ---------------- --------------
Rate Reduction Bonds - 433,009 39,213 - -
--------------- ------------- -------------- ---------------- --------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes 339,038 - - - 108
Accumulated deferred investment tax credits 2,096 - - - -
Deferred contractual obligations 64,237 - - - -
Regulatory liabilities 272,081 - - - -
Accrued pension 44,766 - - - -
Other 26,124 - - - -
--------------- ------------- -------------- ---------------- --------------
748,342 - - - 108
--------------- ------------- -------------- ---------------- --------------
Capitalization:
Long-Term Debt 407,285 - - - -
--------------- ------------- -------------- ---------------- --------------
Common Stockholder's Equity:
Common stock - - - 1 1
Capital surplus, paid in 156,555 3,126 251 - 3,377
Retained earnings 223,822 - - 6,411 6,411
Accumulated other comprehensive loss (117) - - - -
--------------- ------------- -------------- ---------------- --------------
Common Stockholder's Equity 380,260 3,126 251 6,412 9,789
--------------- ------------- -------------- ---------------- --------------
Total Capitalization 787,545 3,126 251 6,412 9,789
--------------- ------------- -------------- ---------------- --------------
Total Liabilities and Capitalization $ 2,145,436 $ 454,203 $ 41,202 $ 6,594 $ 475,624
=============== ============= ============== ================ ==============
Consolidated
---------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to banks $ 10,000
Notes payable to affiliated companies 48,900
Accounts payable 48,408
Accounts payable to affiliated companies 13,911
Accrued taxes 2,543
Accrued interest 10,894
Unremitted rate reduction bond collections -
Derivative liabilities 1,414
Other 27,740
---------------
163,810
---------------
Rate Reduction Bonds 472,222
---------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes 338,930
Accumulated deferred investment tax credits 2,096
Deferred contractual obligations 64,237
Regulatory liabilities 272,081
Accrued pension 44,766
Other 26,124
---------------
748,234
---------------
Capitalization:
Long-Term Debt 407,285
---------------
Common Stockholder's Equity:
Common stock -
Capital surplus, paid in 156,555
Retained earnings 223,822
Accumulated other comprehensive loss (117)
---------------
Common Stockholder's Equity 380,260
---------------
Total Capitalization 787,545
---------------
Total Liabilities and Capitalization $ 2,171,811
===============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-24
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Public Service
Company of PSNH PSNH
New Hampshire Funding LLC Funding LLC 2 Properties, Inc. Eliminations
--------------- ------------- -------------- ---------------- --------------
Operating Revenues $ 888,121 $ 60,882 $ 9,808 $ 723 $ 71,349
--------------- ------------- -------------- ---------------- --------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power 400,518 - - - -
Other 143,198 60,882 9,808 10 71,349
Maintenance 64,872 - - - -
Depreciation 43,322 - - - -
Amortization of regulatory assets, net 37,861 - - - -
Amortization of rate reduction bonds 40,040 - - - -
Taxes other than income taxes 33,363 - - 44 -
--------------- ------------- -------------- ---------------- --------------
Total operating expenses 763,174 60,882 9,808 54 71,349
--------------- ------------- -------------- ---------------- --------------
Operating Income 124,947 - - 669 -
--------------- ------------- -------------- ---------------- --------------
Interest Expense:
Interest on long-term debt 15,408 - - - -
Interest on rate reduction bonds 29,081 - - - -
Other interest 727 - - - -
--------------- ------------- -------------- ---------------- --------------
Interest expense, net 45,216 - - - -
--------------- ------------- -------------- ---------------- --------------
Other (Loss)/Income, Net
Equity in earnings of subsidiaries 403 - - - 403
Other, net (5,000) - - (3) -
--------------- ------------- -------------- ---------------- --------------
Other (loss)/income, net (4,597) - - (3) 403
--------------- ------------- -------------- ---------------- --------------
Income Before Income Tax Expense 75,134 - - 666 403
Income Tax Expense 29,510 - - 263 -
--------------- ------------- -------------- ---------------- --------------
Net Income $ 45,624 $ - $ - $ 403 $ 403
=============== ============= ============== ================ ==============
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Consolidated
---------------
Operating Revenues $ 888,186
---------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power 400,518
Other 142,550
Maintenance 64,872
Depreciation 43,322
Amortization of regulatory assets, net 37,861
Amortization of rate reduction bonds 40,040
Taxes other than income taxes 33,407
---------------
Total operating expenses 762,570
---------------
Operating Income 125,616
---------------
Interest Expense:
Interest on long-term debt 15,408
Interest on rate reduction bonds 29,081
Other interest 727
---------------
Interest expense, net 45,216
---------------
Other (Loss)/Income, Net
Equity in earnings of subsidiaries -
Other, net (5,003)
---------------
Other (loss)/income, net (5,003)
---------------
Income Before Income Tax Expense 75,397
Income Tax Expense 29,773
---------------
Net Income $ 45,624
===============
Note: Individual columns may not add to Consolidated due to
rounding. The accompanying notes are an integral part of these
financial statements.
(a) Not covered by auditors' report.
F-25
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Public Service
Company of PSNH PSNH Properties,
New Hampshire Funding LLC Funding LLC 2 Inc. Eliminations Consolidated
--------------- ------------ -------------- ------------- ------------- --------------
Balance at beginning of period $ 194,998 $ - $ - $ 6,008 $ 6,008 $ 194,998
Additions:
Net income 45,624 - - 403 403 45,624
--------------- ------------ -------------- ------------- ------------- --------------
240,622 - - 6,411 6,411 240,622
--------------- ------------ -------------- ------------- ------------- --------------
Deductions:
Dividends declared:
Common stock $55,813.98 per share 16,800 - - - - 16,800
--------------- ------------ -------------- ------------- ------------- --------------
16,800 - - - - 16,800
--------------- ------------ -------------- ------------- ------------- --------------
Balance at end of period $ 223,822 $ - $ - $ 6,411 $ 6,411 $ 223,822
=============== ============ ============== ============= ============= ==============
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Public Service
Company of PSNH PSNH Properties,
New Hampshire Funding LLC Funding LLC 2 Inc. Eliminations Consolidated
--------------- ------------- -------------- ------------- ------------- --------------
Balance at beginning of period $ 126,937 $ 3,126 $ 251 $ - $ 3,377 $ 126,937
Capital contribution from NU Parent 30,000 - - - - 30,000
Allocation of benefits - ESOP (382) - - - - (382)
--------------- ------------- -------------- ------------- ------------- --------------
Balance at end of period $ 156,555 $ 3,126 $ 251 $ - $ 3,377 $ 156,555
=============== ============= ============== ============= ============= ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-26
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Public Service
Company of PSNH PSNH Properties,
New Hampshire Funding LLC Funding LLC 2 Inc. Eliminations
--------------- ------------- -------------- ---------------- --------------
Operating Activities:
Net income $ 45,624 $ - $ - $ 403 $ 403
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 43,322 - - - -
Deferred income taxes and investment tax
credits, net (6,667) - - (3) -
Amortization of regulatory assets 37,861 - - - -
Amortization of rate reduction bonds 40,040 - - - -
Amortization of recoverable energy costs 23,388 - - - -
Regulatory recoveries 10,778 - - - -
Net other (uses)/sources of cash (30,098) - - 1,052 -
Changes in current assets and liabilities:
Receivables and unbilled revenues, net (7,991) - - (30) (265)
Fuel, materials and supplies (5,351) - - - -
Other current assets (excludes cash) 57 - - 175 145
Accounts payable 3,960 (19) (4) 51 265
Accrued taxes (63,040) - - 121 (145)
Other current liabilities 3,850 (6,474) (8,356) - -
--------------- ------------- -------------- ---------------- --------------
Net cash flows provided by/(used in) operating
activities 95,733 (6,493) (8,360) 1,769 403
--------------- ------------- -------------- ---------------- --------------
Investing Activities:
Investments in plant (105,626) - - - -
NU system Money Pool borrowing 31,910 32,278 7,712 - -
Buyout of IPP contracts (20,437) - - - -
CVEC acquisition special deposit (30,104) - - - -
Other investment activities 1,179 5,387 8,096 - (403)
--------------- ------------- -------------- ---------------- --------------
Net cash flows (used in)/provided by investing
activities (123,078) 37,665 15,808 - (403)
--------------- ------------- -------------- ---------------- --------------
Financing Activities:
Retirement of rate reduction bonds - (31,172) (7,448) - -
Increase in short-term debt 10,000 - - - -
Capital contribution from Northeast Utilities 30,000 - - - -
Cash dividends on common stock (16,800) - - - -
Other financing activities (206) - - - -
--------------- ------------- -------------- ---------------- --------------
Net cash flows provided by/(used in) financing
activities 22,994 (31,172) (7,448) - -
--------------- ------------- -------------- ---------------- --------------
Net (decrease)/increase in cash for the year (4,351) - - 1,769 -
Cash - beginning of year 4,351 1 1 966 -
--------------- ------------- -------------- ---------------- --------------
Cash - end of year $ - $ 1 $ 1 $ 2,735 $ -
=============== ============= ============== ================ ==============
Supplemental Cash Flow Information:
Cash paid during the year for:
Interest, net of amounts capitalized $ 45,312 $ 270 $ 57 $ - $ -
=============== ============= ============== ================ ==============
Income taxes $ 97,137 $ - $ - $ 28 $ -
=============== ============= ============== ================ ==============
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Consolidated
---------------
Operating Activities:
Net income $ 45,624
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 43,322
Deferred income taxes and investment tax
credits, net (6,670)
Amortization of regulatory assets 37,861
Amortization of rate reduction bonds 40,040
Amortization of recoverable energy costs 23,388
Regulatory recoveries 10,778
Net other (uses)/sources of cash (29,046)
Changes in current assets and liabilities:
Receivables and unbilled revenues, net (7,757)
Fuel, materials and supplies (5,351)
Other current assets (excludes cash) 87
Accounts payable 3,723
Accrued taxes (62,774)
Other current liabilities (10,981)
---------------
Net cash flows provided by/(used in) operating
activities 82,244
---------------
Investing Activities:
Investments in plant (105,626)
NU system Money Pool borrowing 71,900
Buyout of IPP contracts (20,437)
CVEC acquisition special deposit (30,104)
Other investment activities 15,066
---------------
Net cash flows (used in)/provided by investing
activities (69,201)
---------------
Financing Activities:
Retirement of rate reduction bonds (38,619)
Increase in short-term debt 10,000
Capital contribution from Northeast Utilities 30,000
Cash dividends on common stock (16,800)
Other financing activities (206)
---------------
Net cash flows provided by/(used in) financing
activities (15,625)
---------------
Net (decrease)/increase in cash for the year (2,582)
Cash - beginning of year 5,319
---------------
Cash - end of year $ 2,737
===============
Supplemental Cash Flow Information:
Cash paid during the year for:
Interest, net of amounts capitalized $ 45,639
===============
Income taxes $ 97,165
===============
Note: Individual columns may not add to Consolidated
due to rounding. The accompanying notes are
an integral part of these financial statements.
(a) Not covered by auditors' report.
F-27
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F-28
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AND SUBSIDIARY
Consolidating Balance Sheet (a)
Assets
December 31, 2003
(Thousands of Dollars)
Western
Massachusetts WMECO
Electric Funding
Company LLC Eliminations Consolidated
------- --- ------------ ------------
ASSETS
------
Current Assets:
Cash $ - $ 1 $ - $ 1
Receivables, net 40,103 - - 40,103
Accounts receivable from affiliated companies 34 - 13 20
Unbilled revenues 10,299 - - 10,299
Notes receivable from affiliated companies - 132,056 132,056 -
Materials and supplies, at average cost 1,584 - - 1,584
Prepayments and other 1,139 - - 1,139
------------- ------------- ------------- -------------
53,159 132,057 132,069 53,146
------------- ------------- ------------- -------------
Property, Plant and Equipment:
Electric utility 612,450 - - 612,450
Less: Accumulated depreciation 177,803 - - 177,803
------------- ------------- ------------- -------------
434,647 - - 434,647
Construction work in progress 13,124 - - 13,124
------------- ------------- ------------- -------------
447,771 - - 447,771
------------- ------------- ------------- -------------
Deferred Debits and Other Assets:
Regulatory assets 268,180 - - 268,180
Prepaid pension 75,386 - - 75,386
Investments in subsidiary company, at equity 776 - 776 -
Other 14,895 4,186 - 19,081
------------- ------------- ------------- -------------
359,237 4,186 776 362,647
------------- ------------- ------------- -------------
Total Assets $ 860,167 $ 136,243 $ 132,845 $ 863,564
============= ============= ============= =============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-29
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AND SUBSIDIARY
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2003
(Thousands of Dollars)
Western
Massachusetts WMECO
Electric Funding
Company LLC Eliminations Consolidated
------- --- ------------ ------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to banks $ 10,000 $ - $ - $ 10,000
Notes payable to affiliated companies 163,456 - 132,056 31,400
Accounts payable 10,173 - - 10,173
Accounts payable to affiliated companies 13,790 14 13 13,789
Accrued taxes 765 - - 765
Accrued interest 1,820 723 - 2,544
Other 8,015 1,770 - 9,785
------------- ------------- ------------- -------------
208,019 2,507 132,069 78,456
------------- ------------- ------------- -------------
Rate Reduction Bonds - 132,960 - 132,960
------------- ------------- ------------- -------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes 216,547 - - 216,547
Accumulated deferred investment tax credits 3,326 - - 3,326
Deferred contractual obligations 86,937 - - 86,937
Regulatory liabilities 27,776 - - 27,776
Other 8,357 - - 8,357
------------- ------------- ------------- -------------
342,943 - - 342,943
------------- ------------- ------------- -------------
Capitalization:
Long-Term Debt 157,202 - - 157,202
------------- ------------- ------------- -------------
Common Stockholder's Equity:
Common stock 10,866 - - 10,866
Capital surplus, paid in 69,544 776 776 69,544
Retained earnings 71,677 - - 71,677
Accumulated other comprehensive loss (84) - - (84)
------------- ------------- ------------- -------------
Common Stockholder's Equity 152,003 776 776 152,003
------------- ------------- ------------- -------------
Total Capitalization 309,205 776 776 309,205
------------- ------------- ------------- -------------
Total Liabilities and Capitalization $ 860,167 $ 136,243 $ 132,845 $ 863,564
============= ============= ============= =============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-30
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AND SUBSIDIARY
Consolidating Statement of Income (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Western
Massachusetts WMECO
Electric Funding
Company LLC Eliminations Consolidated
----------------- ------------- ------------ --------------
Operating Revenues $ 391,178 $ 19,046 $ 19,046 $ 391,178
----------------- ------------- ------------ --------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power 198,985 - - 198,985
Other 59,020 19,046 19,046 59,020
Maintenance 15,289 - - 15,289
Depreciation 14,104 - - 14,104
Amortization of regulatory assets, net 41,695 - - 41,695
Amortization of rate reduction bonds 9,847 - - 9,847
Taxes other than income taxes 11,844 - - 11,844
----------------- ------------- ------------ --------------
Total operating expenses 350,784 19,046 19,046 350,784
----------------- ------------- ------------ --------------
Operating Income 40,394 - - 40,394
----------------- ------------- ------------ --------------
Interest Expense:
Interest on long-term debt 3,860 - - 3,860
Interest on rate reduction bonds 8,994 - - 8,994
Other interest 965 - - 965
----------------- ------------- ------------ --------------
Interest expense, net 13,819 - - 13,819
----------------- ------------- ------------ --------------
Other Income, net 3,167 - - 3,167
----------------- ------------- ------------ --------------
Income Before Income Tax Expense 29,742 - - 29,742
Income Tax Expense 13,530 - - 13,530
----------------- ------------- ------------ --------------
Net Income $ 16,212 $ - $ - $ 16,212
================= ============= ============ ==============
Note: Individual columns may not add to Consolidated due to
rounding. The accompanying notes are an integral part of these
financial statements.
(a) Not covered by auditors' report.
F-31
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AND SUBSIDIARY
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Western
Massachusetts
Electric WMECO
Company Funding LLC Eliminations Consolidated
---------------- ------------- -------------- ---------------
Balance at beginning of period $ 77,476 $ - $ - $ 77,476
Additions:
Net income 16,212 - - 16,212
---------------- ------------- -------------- ---------------
93,688 - - 93,688
---------------- ------------- -------------- ---------------
Deductions:
Dividends declared:
Common stock $50.64 per share 22,011 - - 22,011
---------------- ------------- -------------- ---------------
22,011 - - 22,011
---------------- ------------- -------------- ---------------
Balance at end of period $ 71,677 $ - $ - $ 71,677
================ ============= ============== ===============
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AND SUBSIDIARY
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Western
Massachusetts
Electric WMECO
Company Funding LLC Eliminations Consolidated
---------------- ------------- -------------- ---------------
Balance at beginning of period $ 69,712 $ 776 $ 776 $ 69,712
Allocation of benefits - ESOP (168) - - (168)
---------------- ------------- -------------- ---------------
Balance at end of period $ 69,544 $ 776 $ 776 $ 69,544
================ ============= ============== ===============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-32
WESTERN MASSACHUSETTS ELECTRIC COMPANY AND SUBSIDIARY
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Western
Massachusetts WMECO
Electric Funding
Company LLC Eliminations Consolidated
--------------- -------------- --------------- ---------------
Operating Activities:
Net income $ 16,212 $ - $ - $ 16,212
Adjustments to reconcile to net cash
provided by operating activities:
Depreciation 14,104 - - 14,104
Deferred income taxes and investment tax credits, net (14,315) - - (14,315)
Amortization of regulatory assets 41,695 - - 41,695
Amortization of rate reduction bonds 9,847 - - 9,847
Amortization of recoverable energy costs 598 - - 598
Prepaid pension (7,870) - - (7,870)
Regulatory overrecoveries 6,265 - - 6,265
Net other uses of cash (15,683) - - (15,683)
Changes in current assets and liabilities:
Receivables and unbilled revenues, net 7,080 - - 7,079
Materials and supplies 237 - - 237
Other current assets (excludes cash) 331 - - 330
Accounts payable 15 - - 14
Accrued taxes (3,569) - - (3,569)
Other current liabilities 1,232 1,031 - 2,266
--------------- -------------- --------------- ---------------
Net cash flows provided by operating activities 56,179 1,031 - 57,210
--------------- -------------- --------------- ---------------
Investing Activities:
Investments in plant (30,386) - - (30,386)
NU system money pool (lending)/borrowing (64,345) 9,845 - (54,500)
Other investment activities 2,471 (1,094) - 1,377
--------------- -------------- --------------- ---------------
Net cash flows (used in)/provided by investing activities (92,260) 8,751 - (83,509)
--------------- -------------- --------------- ---------------
Financing Activities:
Issuance of long-term debt 55,000 - - 55,000
Retirement of rate reduction bonds - (9,782) - (9,782)
Increase in short-term debt 3,000 - - 3,000
Cash dividends on common stock (22,011) - - (22,011)
Other financing activities (30) - - (30)
--------------- -------------- --------------- ---------------
Net cash flows provided by/(used in) financing activities 35,959 (9,782) - 26,177
--------------- -------------- --------------- ---------------
Net decrease in cash for the year (122) - - (122)
Cash - beginning of year 122 1 - 123
--------------- -------------- --------------- ---------------
Cash - end of year $ - $ 1 $ - $ 1
=============== ============== =============== ===============
Supplemental Cash Flow Information:
Cash paid during the year for:
Interest, net of amounts capitalized $ 13,507 $ 53 $ - $ 13,560
=============== ============== =============== ===============
Income taxes $ 31,807 $ - $ - $ 31,807
=============== ============== =============== ===============
Note: Individual columns may not add to Consolidated
due to rounding. The accompanying notes are
an integral part of these financial statements.
(a) Not covered by auditors' report.
F-33
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F-34
HOLYOKE WATER POWER COMPANY
AND SUBSIDIARY
Consolidating Balance Sheet (a)
Assets
December 31, 2003
(Thousands of Dollars)
Holyoke Holyoke
Water Power and
Power Electric
Company Company Eliminations Consolidated
------- ------- ------------ ------------
ASSETS
------
Current Assets:
Cash $ 63 $ 18 $ - $ 81
Receivables, net 5 12 - 17
Accounts receivable from affiliated companies 4,049 3,986 3,986 4,049
Taxes receivable 315 - 52 263
Fuel, materials, and supplies, at average cost 7,788 - - 7,788
Prepayments and other 176 45 - 221
---------------- ------------- ----------- --------------
12,396 4,061 4,038 12,419
---------------- ------------- ----------- --------------
Property, Plant and Equipment:
Competitive energy 35,333 1,418 - 36,751
Less: Accumulated depreciation 33,026 1,096 - 34,122
---------------- ------------- ----------- --------------
2,307 322 - 2,629
Construction work in progress 3,852 37 - 3,889
---------------- ------------- ----------- --------------
6,159 359 - 6,518
---------------- ------------- ----------- --------------
Deferred Debits and Other Assets:
Deferred financing costs 672 - - 672
Prepaid pension 2,515 - - 2,515
Investments in subsidiary company, at equity 383 - 383 -
Other 1,590 39 39 1,590
---------------- ------------- ----------- --------------
5,160 39 422 4,777
---------------- ------------- ----------- --------------
Total Assets $ 23,715 $ 4,459 $ 4,460 $ 23,714
================ ============= =========== ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-35
HOLYOKE WATER POWER COMPANY
AND SUBSIDIARY
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2003
(Thousands of Dollars)
Holyoke Holyoke
Water Power and
Power Electric
Company Company Eliminations Consolidated
------- ------- ------------ ------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to affiliated companies $ 1,400 $ - $ - $ 1,400
Accounts payable 905 - - 905
Accounts payable to affiliated companies 1,553 4,024 3,986 1,591
Accrued taxes 186 52 52 186
---------------- ------------- ----------- --------------
4,044 4,076 4,038 4,082
---------------- ------------- ----------- --------------
Deferred Credits and Other Liabilities:
Accumulated deferred investment tax credits 1,535 - 39 1,496
Regulatory liabilities 170 - - 170
Other 3,611 3 3 3,611
---------------- ------------- ----------- --------------
5,316 3 42 5,277
---------------- ------------- ----------- --------------
Capitalization:
Long-Term Debt from parent companies 9,600 181 181 9,600
---------------- ------------- ----------- --------------
Common Stockholder's Equity:
Common stock 2,400 485 485 2,400
Capital surplus, paid in 5,966 - - 5,966
Accumulated deficit (3,611) (286) (286) (3,611)
---------------- ------------- ----------- --------------
Common Stockholder's Equity 4,755 199 199 4,755
---------------- ------------- ----------- --------------
Total Capitalization 14,355 380 380 14,355
---------------- ------------- ----------- --------------
Total Liabilities and Capitalization $ 23,715 $ 4,459 $ 4,460 $ 23,714
================ ============= =========== ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-36
HOLYOKE WATER POWER COMPANY
AND SUBSIDIARY
Consolidating Statement of Income (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Holyoke Holyoke
Water Power and
Power Electric
Company Company Eliminations Consolidated
---------------- ------------- ------------ --------------
Operating Revenues $ 41,398 $ 41,115 $ 40,835 $ 41,679
---------------- ------------- ------------ --------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power 29,759 40,911 40,835 29,836
Other 7,798 (27) - 7,771
Maintenance 4,486 - - 4,486
Depreciation 590 24 - 613
Amortization (1) - - (1)
Taxes other than income taxes 1,006 43 - 1,049
---------------- ------------- ------------ --------------
Total operating expenses 43,638 40,951 40,835 43,754
---------------- ------------- ------------ --------------
Operating(Loss)/ Income (2,240) 164 - (2,075)
---------------- ------------- ------------ --------------
Interest Expense:
Interest on long-term debt (7) - - (7)
Other interest 206 19 19 206
---------------- ------------- ------------ --------------
Interest expense, net 199 19 19 199
---------------- ------------- ------------ --------------
Other Income, Net
Equity in earnings of subsidiary 82 - 82 -
Other, net 77 - 19 57
---------------- ------------- ------------ --------------
Other income, net 159 - 101 57
---------------- ------------- ------------ --------------
(Loss)/Income Before Income Tax (Benefit)/Expense (2,280) 145 82 (2,217)
Income Tax (Benefit)/Expense (814) 63 - (751)
---------------- ------------- ------------ --------------
Net (Loss)/Income $ (1,466) $ 82 $ 82 $ (1,466)
================ ============= ============ ==============
Note: Individual columns may not add to Consolidated due to
rounding. The accompanying notes are an integral part of these
financial statements.
(a) Not covered by auditors' report.
F-37
HOLYOKE WATER POWER COMPANY
AND SUBSIDIARY
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Holyoke Holyoke
Water Power and
Power Electric
Company Company Eliminations Consolidated
----------------- ---------------- -------------- ----------------
Balance at beginning of period $ (2,145) $ (368) $ (368) $ (2,145)
Additions:
Net (loss)/income (1,466) 82 82 (1,466)
----------------- ---------------- -------------- ----------------
Balance at end of period $ (3,611) $ (286) $ (286) $ (3,611)
================= ================ ============== ================
HOLYOKE WATER POWER COMPANY
AND SUBSIDIARY
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Holyoke Holyoke
Water Power and
Power Electric
Company Company Eliminations Consolidated
----------------- ---------------- -------------- ----------------
Balance at beginning of period $ 5,969 $ - $ - $ 5,969
Allocation of benefits - ESOP (3) - - (3)
----------------- ---------------- -------------- ----------------
Balance at end of period $ 5,966 $ - $ - $ 5,966
================= ================ ============== ================
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-38
HOLYOKE WATER POWER COMPANY AND SUBSIDIARY
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Holyoke
Holyoke Power and
Water Power Electric
Company Company Eliminations Consolidated
---------------- --------------- ---------------- -------------
Operating Activities:
Net (loss)/income $ (1,466) $ 82 $ 82 $ (1,466)
Adjustments to reconcile to net cash
(used in)/provided by operating activities:
Depreciation 590 24 - 614
Deferred income taxes and investment tax credits, net (188) (1) - (189)
Amortization (1) - - (1)
Regulatory refunds (869) - - (869)
Net other sources/(uses) of cash 1,057 (411) (407) 1,053
Changes in current assets and liabilities:
Receivables and unbilled revenues, net (880) (511) (856) (535)
Fuel, materials and supplies (427) - - (427)
Other current assets (excludes cash) 561 (32) (35) 565
Accounts payable (885) 880 856 (862)
Accrued taxes 24 36 36 24
Other current liabilities (22) (12) - (34)
---------------- --------------- ---------------- -------------
Net cash flows (used in)/provided by operating activities (2,506) 55 (324) (2,127)
---------------- --------------- ---------------- -------------
Investing Activities:
Competitive energy assets (1,782) (37) - (1,819)
NU system Money Pool borrowing 3,500 - - 3,500
Other investment activities 771 - 324 447
---------------- --------------- ---------------- -------------
Net cash flows provided by/(used in) investing activities 2,489 (37) 324 2,128
---------------- --------------- ---------------- -------------
Net (decrease)/increase in cash for the year (17) 18 - 1
Cash - beginning of year 80 - - 80
---------------- --------------- ---------------- -------------
Cash - end of year $ 63 $ 18 $ - $ 81
================ =============== ================ =============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 255 $ 19 $ 19 $ 255
================ =============== ================ =============
Income taxes $ (973) $ 25 $ - $ (948)
================ =============== ================ =============
Note: Individual columns may not add to Consolidated
due to rounding. The accompanying notes are
an integral part of these financial statements.
(a) Not covered by auditors' report.
F-39
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F-40
YANKEE ENERGY SYSTEM, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2003
(Thousands of Dollars)
Yankee
Energy Yankee Gas NorConn
System, Services Properties Housatonic
Inc. Company Inc. Corporation
---------------- ------------------- ------------- -----------------
ASSETS
------
Current Assets:
Cash $ - $ 889 $ 45 $ -
Receivables, net - 51,613 - -
Accounts receivable from affiliated companies 2 8,593 16 100
Unbilled revenues - 16,051 - -
Taxes receivable - - - 24
Notes receivable from affiliated companies 1,700 - - -
Fuel, materials, and supplies, at average cost - 33,541 - -
Derivative assets - 2,962 - -
Prepayments and other - 6,864 - -
---------------- ------------------- ------------- -----------------
1,702 120,513 61 124
---------------- ------------------- ------------- -----------------
Property, Plant and Equipment:
Gas utility - 743,991 - -
Less: Accumulated depreciation - 223,496 - -
---------------- ------------------- ------------- -----------------
- 520,495 - -
Construction work in progress - 41,670 - -
---------------- ------------------- ------------- -----------------
- 562,165 - -
---------------- ------------------- ------------- -----------------
Deferred Debits and Other Assets:
Regulatory assets - 54,765 - -
Goodwill - 287,591 - -
Prepaid pension - 41,204 - -
Investments in subsidiary companies, at equity 520,186 - - -
Other 3,687 2,336 1,827 -
---------------- ------------------- ------------- -----------------
523,873 385,896 1,827 -
---------------- ------------------- ------------- -----------------
Total Assets $ 525,575 $ 1,068,574 $ 1,888 $ 124
================ =================== ============= =================
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-41
YANKEE ENERGY SYSTEM, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2003
(Thousands of Dollars)
Yankee Yankee
Energy Energy R.M.
Financial Services Services
Services Company Company Eliminations Consolidated
----------- ------------ ------------- --------------- ---------------
ASSETS
------
Current Assets:
Cash $ - $ 444 $ - $ - $ 1,378
Receivables, net 5,186 - - - 56,799
Accounts receivable from affiliated companies 2 - 173 751 8,135
Unbilled revenues - - - - 16,051
Taxes receivable - 301 - 325 -
Notes receivable from affiliated companies - 100 - 1,800 -
Fuel, materials, and supplies, at average cost - - - - 33,541
Derivative assets - - - - 2,962
Prepayments and other 11 - 498 - 7,373
----------- ------------ ------------- --------------- ---------------
5,199 845 671 2,876 126,239
----------- ------------ ------------- --------------- ---------------
Property, Plant and Equipment:
Gas utility - - - - 743,991
Less: Accumulated depreciation - - - - 223,496
----------- ------------ ------------- --------------- ---------------
- - - - 520,495
Construction work in progress - - - - 41,670
----------- ------------ ------------- --------------- ---------------
- - - - 562,165
----------- ------------ ------------- --------------- ---------------
Deferred Debits and Other Assets:
Regulatory assets - - - - 54,765
Goodwill - - - - 287,591
Prepaid pension - - - - 41,204
Investments in subsidiary companies, at equity - - - 520,186 -
Other 75 4,308 6,744 8,529 10,447
----------- ------------ ------------- --------------- ---------------
75 4,308 6,744 528,715 394,007
----------- ------------ ------------- --------------- ---------------
Total Assets $ 5,274 $ 5,153 $ 7,415 $ 531,591 $ 1,082,411
=========== ============ ============= =============== ===============
F-42
YANKEE ENERGY SYSTEM, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2003
(Thousands of Dollars)
Yankee
Energy Yankee Gas NorConn
System, Services Properties Housatonic
Inc. Company Inc. Corporation
---------------- ------------------- ------------- -----------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to banks $ - $ 20,000 $ - $ -
Notes payable to affiliated companies - 67,500 1,100 -
Long-term debt - current portion - 950 - -
Accounts payable 140 30,364 - 315
Accounts payable to affiliated companies 108 5,428 2 -
Accrued taxes 135 11,327 46 -
Accrued interest - 3,361 - -
Derivative liabilities - 172 - -
Other - 23,589 - -
---------------- ------------------- ------------- -----------------
383 162,691 1,148 315
---------------- ------------------- ------------- -----------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes - 97,529 301 -
Accumulated deferred investment tax credits - 6,344 - -
Regulatory liabilities - 111,268 - -
Other 58 25,719 - -
---------------- ------------------- ------------- -----------------
58 240,860 301 -
---------------- ------------------- ------------- -----------------
Capitalization:
Long-Term Debt - 151,266 - -
---------------- ------------------- ------------- -----------------
Long-Term Debt from NU Parent - 5,000 - -
---------------- ------------------- ------------- -----------------
Common Stockholder's Equity:
Common stock - 5 1 10
Capital surplus, paid in 484,616 465,723 9 2
Retained earnings/accumulated deficit 40,518 43,029 429 (203)
---------------- ------------------- ------------- -----------------
Common Stockholder's Equity 525,134 508,757 439 (191)
---------------- ------------------- ------------- -----------------
Total Capitalization 525,134 665,023 439 (191)
---------------- ------------------- ------------- -----------------
Total Liabilities and Capitalization $ 525,575 $ 1,068,574 $ 1,888 $ 124
================ =================== ============= =================
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-43
YANKEE ENERGY SYSTEM, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2003
(Thousands of Dollars)
Yankee Yankee
Energy Energy R.M.
Financial Services Services
Services Company Company Eliminations Consolidated
----------- ------------ ------------- --------------- ---------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to banks $ - $ - $ - $ - $ 20,000
Notes payable to affiliated companies 3,600 - - 1,800 70,400
Long-term debt - current portion - - - - 950
Accounts payable 43 - - - 30,863
Accounts payable to affiliated companies 9 454 - 751 5,249
Accrued taxes 71 - - 325 11,255
Accrued interest - - - - 3,361
Derivative liabilities - - - - 172
Other - 3 2,473 - 26,066
----------- ------------- ------------- --------------- ---------------
3,723 457 2,473 2,876 168,316
----------- ------------- ------------- --------------- ---------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes - - - 8,529 89,301
Accumulated deferred investment tax credits - - - - 6,344
Regulatory liabilities - - - - 111,268
Other - 5 - - 25,782
----------- ------------- ------------- --------------- ---------------
- 5 - 8,529 232,695
----------- ------------- ------------- --------------- ---------------
Capitalization:
Long-Term Debt - - - - 151,266
----------- ------------- ------------- --------------- ---------------
Long-Term Debt from NU Parent - - - - 5,000
----------- ------------- ------------- --------------- ---------------
Common Stockholder's Equity:
Common stock 1 1 1 19 -
Capital surplus, paid in 1,241 7,881 13,798 488,652 484,616
Retained earnings/accumulated deficit 309 (3,191) (8,857) 31,515 40,518
----------- ------------- ------------- --------------- ---------------
Common Stockholder's Equity 1,551 4,691 4,942 520,186 525,134
----------- ------------- ------------- --------------- ---------------
Total Capitalization 1,551 4,691 4,942 520,186 681,400
----------- ------------- ------------- --------------- ---------------
Total Liabilities and Capitalization $ 5,274 $ 5,153 $ 7,415 $ 531,591 $ 1,082,411
=========== ============= ============= =============== ===============
F-44
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Yankee
Energy Yankee Gas NorConn
System, Services Properties, Housatonic
Inc. Company Inc. Corporation
--------------- --------------- ------------ ---------------
Operating Revenues $ - $ 361,449 $ 196 $ -
--------------- --------------- ------------ ---------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power - 216,335 - -
Other 82 61,031 6 -
Maintenance - 9,256 - -
Depreciation - 22,651 88 -
Amortization of regulatory assets, net - 702 - -
Taxes other than income taxes - 25,072 - -
--------------- --------------- ------------ ---------------
Total operating expenses 82 335,047 94 -
--------------- --------------- ------------ ---------------
Operating (Loss)/Income (82) 26,402 102 -
--------------- --------------- ------------ ---------------
Interest Expense:
Interest on long-term debt - 12,259 8 -
Other interest 3 833 14 -
--------------- --------------- ------------ ---------------
Interest expense, net 3 13,092 22 -
--------------- --------------- ------------ ---------------
Other (Loss)/Income, Net
Equity in loss of subsidiaries (388) - - -
Other, net 13 (2,374) 2 -
--------------- --------------- ------------ ---------------
Other (loss)/income, net (375) (2,374) 2 -
--------------- --------------- ------------ ---------------
(Loss)/Income Before Income Tax (Benefit)/Expense (460) 10,936 82 -
Income Tax (Benefit)/Expense (35) 3,635 33 -
--------------- --------------- ------------ ---------------
(Loss)/Income before cumulative effect of
accounting change, net of tax benefit $ (425) $ 7,301 $ 49 $ -
Cumulative effect of accounting change,
net of tax benefit - - - -
--------------- --------------- ------------ ---------------
Net (Loss)/Income $ (425) $ 7,301 $ 49 $ -
=============== =============== ============ ===============
Note: Individual columns may not add to Consolidated due to rounding. The
accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-45
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Yankee Yankee
Energy Energy R.M.
Financial Services Services
Services Company Inc. Eliminations Consolidated
-------------- ------------ ------------ ------------- --------------
Operating Revenues $ 28 $ 9 $ - $ 196 $ 361,486
-------------- ------------ ------------ ------------- --------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power - - - - 216,335
Other 104 455 - 196 61,483
Maintenance - - - - 9,256
Depreciation 40 - - - 22,779
Amortization of regulatory assets, net - - - - 702
Taxes other than income taxes - - - - 25,072
-------------- ------------ ------------ ------------- --------------
Total operating expenses 144 455 - 196 335,627
-------------- ------------ ------------ ------------- --------------
Operating (Loss)/Income (116) (446) - - 25,859
-------------- ------------ ------------ ------------- --------------
Interest Expense:
Interest on long-term debt - - - - 12,267
Other interest 37 4 - 6 885
-------------- ------------ ------------ ------------- --------------
Interest expense, net 37 4 - 6 13,152
-------------- ------------ ------------ ------------- --------------
Other (Loss)/Income, Net
Equity in loss of subsidiaries - - - (388) -
Other, net 326 3 (4,312) 6 (6,348)
-------------- ------------ ------------ ------------- --------------
Other (loss)/income, net 326 3 (4,312) (382) (6,348)
-------------- ------------ ------------ ------------- --------------
(Loss)/Income Before Income Tax (Benefit)/Expense 173 (447) (4,312) (388) 6,359
Income Tax (Benefit)/Expense 99 (179) (1,509) - 2,043
-------------- ------------ ------------ ------------- --------------
(Loss)/Income before cumulative effect of
accounting change, net of tax benefit $ 74 $ (268) $ (2,803) $ (388) $ 4,316
Cumulative effect of accounting change,
net of tax benefit - - (4,741) - (4,741)
-------------- ------------ ------------ ------------- --------------
Net (Loss)/Income $ 74 $ (268) $ (7,544) $ (388) $ (425)
============== ============ ============ ============= ==============
F-46
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Yankee
Energy Yankee Gas NorConn
System, Services Properties, Housatonic
Inc. Company Inc. Corporation
------------- ------------- ------------- --------------
Balance at beginning of period $ 40,943 $ 35,728 $ 380 $ (203)
Additions:
Net (loss)/income (425) 7,301 49 -
------------- ------------- ------------- --------------
Balance at end of period $ 40,518 $ 43,029 $ 429 $ (203)
============= ============= ============= ==============
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Yankee
Energy Yankee Gas NorConn
System, Services Properties, Housatonic
Inc. Company Inc. Corporation
------------- ------------- ------------- --------------
Balance at beginning of period $ 484,769 $ 465,876 $ 9 $ 2
Allocation of benefits - ESOP (153) (153) - -
------------- ------------- ------------- --------------
Balance at end of period $ 484,616 $ 465,723 $ 9 $ 2
============= ============= ============= ==============
Note: Individual columns may not add to Consolidated due to rounding. The
accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-47
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Yankee Yankee
Energy Energy R.M.
Financial Services Services
Services Company Inc. Eliminations Consolidated
-------------- ----------- ------------ -------------- --------------
Balance at beginning of period $ 235 $ (2,923) $ (1,313) $ 31,903 $ 40,943
Additions:
Net (loss)/income 74 (268) (7,544) (388) (425)
-------------- ----------- ------------ -------------- --------------
Balance at end of period $ 309 $ (3,191) $ (8,857) $ 31,515 $ 40,518
============== =========== ============ ============== ==============
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Yankee Yankee
Energy Energy R.M.
Financial Services Services
Services Company Inc. Eliminations Consolidated
-------------- ----------- ------------ -------------- --------------
Balance at beginning of period $ 1,241 $ 7,881 $ 13,798 $ 488,805 $ 484,769
Allocation of benefits - ESOP - - - (153) (153)
-------------- ----------- ------------ -------------- --------------
Balance at end of period $ 1,241 $ 7,881 $ 13,798 $ 488,652 $ 484,616
============== =========== ============ ============== ==============
F-48
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Yankee
Energy Yankee Gas NorConn
System, Services Properties, Housatonic
Inc. Company Inc. Corporation
-------------- ------------- --------------- -----------------
Operating Activities:
Net (loss)/income $ (425) $ 7,301 $ 49 $ -
Adjustments to reconcile to net cash
(used in)/provided by operating activities:
Depreciation - 22,651 88 -
Deferred income taxes and investment tax credits, net 32 11,740 (13) -
Amortization - 702 - -
Amortization of recoverable energy costs - 697 - -
Prepaid pension - 2,126 - -
Cumulative effect of accounting change - - - -
Regulatory refunds - (13,940) - -
Net other (uses)/sources of cash (283) 3,862 (88) 1
Changes in current assets and liabilities:
Receivables and unbilled revenues, net 36 19,362 8 (100)
Fuel, materials and supplies - (16,839) - -
Other current assets (excludes cash) - (2,937) - (24)
Accounts payable (59) (5,487) (33) 315
Accrued taxes 58 2,831 (29) (278)
Other current liabilities (1,354) (1,504) (7) -
-------------- ------------- --------------- -----------------
Net cash flows (used in)/provided by operating activities (1,995) 30,565 (25) (86)
-------------- ------------- --------------- -----------------
Investing Activities:
Investments in plant - (55,226) - -
NU system Money Pool (lending)/borrowing (412) 1,500 1,381 -
Other investment activities 1,895 - 89 -
-------------- ------------- --------------- -----------------
Net cash flows provided by/(used in) investing activities 1,483 (53,726) 1,470 -
-------------- ------------- --------------- -----------------
Financing Activities:
Increase in short-term debt - 20,000 - -
Reacquisitions and retirements of long-term debt - (950) (1,400) -
Advance from NU parent - 5,000 - -
Cash dividends on common stock - - - -
-------------- ------------- --------------- -----------------
Net cash flows provided by/(used in) financing activities - 24,050 (1,400) -
-------------- ------------- --------------- -----------------
Net (decrease)/increase in cash for the year (512) 889 45 (86)
Cash - beginning of year 512 - - 86
-------------- ------------- --------------- -----------------
Cash - end of year $ - $ 889 $ 45 $ -
============== ============= =============== =================
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 3 $ 13,037 $ 29 $ -
============== ============= =============== =================
Income taxes $ 16 $ (9,848) $ 74 $ 283
============== ============= =============== =================
Note: Individual columns may not add to Consolidated due to rounding. The
accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-49
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Yankee Yankee
Energy Energy R.M.
Financial Services Services
Services Company Inc. Eliminations Consolidated
------------- ------------ ------------- ------------- -------------
Operating Activities:
Net (loss)/income $ 74 $ (268) $ (2,803) $ (388) $ 4,316
Adjustments to reconcile to net cash
(used in)/provided by operating activities:
Depreciation 40 - - - 22,779
Deferred income taxes and investment tax credits, net 13 170 (1,509) - 10,433
Amortization - - - - 702
Amortization of recoverable energy costs - - - - 697
Prepaid pension - - - - 2,126
Cumulative effect of accounting change - - (4,741) - (4,741)
Regulatory refunds - - - - (13,940)
Net other (uses)/sources of cash (20) - (3,267) (153) 357
Changes in current assets and liabilities:
Receivables and unbilled revenues, net (586) 454 - 401 18,774
Fuel, materials and supplies - - - - (16,839)
Other current assets (excludes cash) (1) (113) (498) (137) (3,437)
Accounts payable (38) (34) - (401) (4,935)
Accrued taxes 53 - - 137 2,499
Other current liabilities - (4) 2,473 (1,354) 959
------------- ------------ ------------- ------------- -------------
Net cash flows (used in)/provided by operating activities (465) 205 (10,345) (1,895) 19,750
------------- ------------ ------------- ------------- -------------
Investing Activities:
Investments in plant - - - - (55,226)
NU system Money Pool (lending)/borrowing 400 (869) - - 2,000
Other investment activities 21 1,108 10,345 1,895 11,562
------------- ------------ ------------- ------------- -------------
Net cash flows provided by/(used in) investing activities 421 239 10,345 1,895 (41,664)
------------- ------------ ------------- ------------- -------------
Financing Activities:
Increase in short-term debt - - - - 20,000
Reacquisitions and retirements of long-term debt - - - - (2,350)
Advance from NU parent - - - - 5,000
Cash dividends on common stock - - - - -
------------- ------------ ------------- ------------- -------------
Net cash flows provided by/(used in) financing activities - - - - 22,650
------------- ------------ ------------- ------------- -------------
Net (decrease)/increase in cash for the year (44) 444 - - 736
Cash - beginning of year 44 - - - 642
------------- ------------ ------------- ------------- -------------
Cash - end of year $ - $ 444 $ - $ - $ 1,378
============= ============ ============= ============= =============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 37 $ 4 $ - $ 6 $ 13,104
============= ============ ============= ============= =============
Income taxes $ 32 $ (541) $ - $ - $ (9,984)
============= ============ ============= ============= =============
F-50
NU ENTERPRISES, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2003
(Thousands of Dollars)
Northeast
Generation
Services Select
NU Northeast Company Energy, Inc. Mode 1
Enterprises, Generation (consolidated) (consolidated) Communications,
Inc. Company (b) (b) Inc.
--------------- ------------ --------------- ---------------- -----------------
ASSETS
Current Assets:
Cash $ - $ 12,863 $ 1,227 $ 906 $ -
Unrestricted cash from counterparties - - - 46,496 -
Special deposits - - - 17,005 -
Receivables, net 1,200 - 18,206 388,860 -
Accounts receivable from affiliated companies - 12,988 3,851 161,803 -
Unbilled revenues - - 4,647 48,703 -
Taxes receivable 88 - - 25,975 1,554
Notes receivable from affiliated companies 16,500 10,000 - - 3,600
Fuel, materials, and supplies, at average cost - 2,311 269 - -
Derivative assets - - - 181,352 -
Prepaid option premiums - - - 16,742 -
Prepayments and other 10 749 965 27,234 -
--------------- ------------ --------------- ---------------- -----------------
17,798 38,911 29,165 915,076 5,154
--------------- ------------ --------------- ---------------- -----------------
Property, Plant and Equipment:
Competitive energy - 821,230 4,382 14,846 1,025
Less: Accumulated depreciation - 29,290 1,493 12,148 135
--------------- ------------ --------------- ---------------- -----------------
- 791,940 2,889 2,698 890
Construction work in progress - 11,620 667 6,167 -
--------------- ------------ --------------- ---------------- -----------------
- 803,560 3,556 8,865 890
--------------- ------------ --------------- ---------------- -----------------
Deferred Debits and Other Assets:
Accumulated deferred income taxes 996 - - - 559
Goodwill - - 10,182 3,200 -
Purchased intangible assets, net - - 4,480 14,426 -
Prepaid pension - - 975 395 -
Investments in subsidiary companies, at equity 1,250,443 - - - -
Long-term accounts receivable - - - 6,194 -
Long-term contracts asset - - - 39,339 -
Other 7,500 38,939 1,649 - 9,861
--------------- ------------ --------------- ---------------- -----------------
1,258,939 38,939 17,286 63,554 10,420
--------------- ------------ --------------- ---------------- -----------------
Total Assets $ 1,276,737 $ 881,410 $ 50,007 $ 987,495 $ 16,464
=============== ============ =============== ================ =================
Note: Individual columns may not add to Consolidated due to
rounding. The accompanying notes are an integral part of these
financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
F-51
NU ENTERPRISES, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2003
(Thousands of Dollars)
Select
Energy
Services, Inc.
(consolidated) Woods Network
(b) Services, Inc. Eliminations Consolidated
-------------- -------------- -------------- -------------
ASSETS
Current Assets:
Cash $ 1,524 $ 401 $ - $ 16,921
Unrestricted cash from counterparties - - - 46,496
Special deposits 32,011 - - 49,016
Receivables, net 27,391 1,884 - 437,541
Accounts receivable from affiliated companies - - 15,700 162,942
Unbilled revenues - - - 53,349
Taxes receivable - - 671 26,945
Notes receivable from affiliated companies - 500 30,600 -
Fuel, materials, and supplies, at average cost 330 177 - 3,087
Derivative assets - - - 181,352
Prepaid option premiums - - 16,742 -
Prepayments and other 3,542 - (16,742) 49,243
-------------- -------------- -------------- -------------
64,798 2,962 46,971 1,026,892
-------------- -------------- -------------- -------------
Property, Plant and Equipment:
Competitive energy 7,572 146 - 849,202
Less: Accumulated depreciation 4,707 39 - 47,810
-------------- -------------- -------------- -------------
2,865 107 - 801,392
Construction work in progress - - - 18,453
-------------- -------------- -------------- -------------
2,865 107 - 819,845
-------------- -------------- -------------- -------------
Deferred Debits and Other Assets:
Accumulated deferred income taxes - - 1,556 -
Goodwill 17,973 1,041 - 32,395
Purchased intangible assets, net - 4,050 - 22,956
Prepaid pension - - - 1,370
Investments in subsidiary companies, at equity - - 1,250,443 -
Long-term accounts receivable - - 6,194 -
Long-term contracts asset - - 39,339 -
Other 98,410 - (52,486) 208,845
-------------- -------------- -------------- -------------
116,383 5,091 1,245,046 265,566
-------------- -------------- -------------- -------------
Total Assets $ 184,046 $ 8,160 $ 1,292,017 $ 2,112,303
============== ============== ============== =============
F-52
NU ENTERPRISES, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2003
(Thousands of Dollars)
Northeast
Generation
Services Select
NU Northeast Company Energy, Inc. Mode 1
Enterprises, Generation (consolidated) (consolidated) Communications,
Inc. Company (b) (b) Inc.
--------------- ------------ --------------- ---------------- -----------------
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes payable to affiliated companies $ - $ - $ 11,300 $ 52,200 $ -
Long-term debt - current portion - 31,500 - - -
Accounts payable 53 2,266 8,078 479,041 264
Accounts payable to affiliated companies 72 1,274 3,301 20,925 13
Accrued taxes - 446 22 - -
Accrued interest - 6,783 - 27 -
Derivative liabilities - - - 104,961 -
Unearned option premiums - - - 12,244 -
Other - 310 1,781 85,716 -
--------------- ------------ --------------- ---------------- -----------------
125 42,579 24,482 755,114 277
--------------- ------------ --------------- ---------------- -----------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes - 42,863 415 16,769 -
Other - 19 2,361 8,711 1,536
--------------- ------------ --------------- ---------------- -----------------
- 42,882 2,776 25,480 1,536
--------------- ------------ --------------- ---------------- -----------------
Capitalization:
Long-Term Debt - 357,500 - - -
--------------- ------------ --------------- ---------------- -----------------
Long-Term Debt from parent companies - - 9,450 164,699 -
--------------- ------------ --------------- ---------------- -----------------
Common Stockholder's Equity:
Common stock - - - - -
Capital surplus, paid in 1,382,880 408,095 15,455 286,224 31,857
(Accumulated deficit)/Retained earnings (130,220) 31,766 (2,143) (269,386) (17,206)
Accumulated other comprehensive income/(loss) 23,952 (1,412) (13) 25,364 -
--------------- ------------ --------------- ---------------- -----------------
Common Stockholder's Equity 1,276,612 438,449 13,299 42,202 14,651
--------------- ------------ --------------- ---------------- -----------------
Total Capitalization 1,276,612 795,949 22,749 206,901 14,651
--------------- ------------ --------------- ---------------- -----------------
Total Liabilities and Capitalization $ 1,276,737 $ 881,410 $ 50,007 $ 987,495 $ 16,464
=============== ============ =============== ================ =================
Note: Individual columns may not add to Consolidated due to
rounding. The accompanying notes are an integral part of these
financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
F-53
NU ENTERPRISES, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2003
(Thousands of Dollars)
Select
Energy
Services, Inc.
(consolidated) Woods Network
(b) Services, Inc. Eliminations Consolidated
-------------- -------------- -------------- -------------
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Notes payable to affiliated companies $ 1,250 $ - $ 30,600 $ 34,150
Long-term debt - current portion 7,033 - - 38,533
Accounts payable 6,725 459 - 496,886
Accounts payable to affiliated companies 2,368 25 8,420 19,558
Accrued taxes 618 12 671 427
Accrued interest 1,595 - - 8,405
Derivative liabilities - - - 104,961
Unearned option premiums - - 12,245 -
Other 10,144 24 (12,245) 110,219
-------------- -------------- -------------- -------------
29,733 520 39,691 813,139
-------------- -------------- -------------- -------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes 759 161 1,556 59,411
Other - 19 327 12,320
-------------- -------------- -------------- -------------
759 180 1,883 71,731
-------------- -------------- -------------- -------------
Capitalization:
Long-Term Debt 118,019 - - 475,518
-------------- -------------- -------------- -------------
Long-Term Debt from parent companies - 4,400 250 178,299
-------------- -------------- -------------- -------------
Common Stockholder's Equity:
Common stock - - 1 -
Capital surplus, paid in 25,029 2,650 1,472,293 679,897
(Accumulated deficit)/Retained earnings 10,506 410 (246,053) (130,220)
Accumulated other comprehensive income/(loss) - - 23,952 23,939
-------------- -------------- -------------- -------------
Common Stockholder's Equity 35,535 3,060 1,250,193 573,616
-------------- -------------- -------------- -------------
Total Capitalization 153,554 7,460 1,250,443 1,227,433
-------------- -------------- -------------- -------------
Total Liabilities and Capitalization $ 184,046 $ 8,160 $ 1,292,017 $ 2,112,303
============== ============== ============== =============
F-54
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Northeast
Generation
Services Select
NU Northeast Company Energy, Inc.
Enterprises, Generation (consolidated) (consolidated)
Inc. Company (b) (b)
---------------- --------------- ------------- --------------
Operating Revenues $ - $ 143,814 $ 102,354 $ 2,344,593
---------------- --------------- ------------- --------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power - - 2,089 2,308,173
Other 760 13,621 46,356 81,140
Maintenance - 12,374 54,588 6
Depreciation - 9,784 551 8,012
Amortization - - 39 3,710
Taxes other than income taxes 7 9,391 1,816 3,444
---------------- --------------- ------------- --------------
Total operating expenses 767 45,170 105,439 2,404,485
---------------- --------------- ------------- --------------
Operating (Loss)/Income (767) 98,644 (3,085) (59,892)
---------------- --------------- ------------- --------------
Interest Expense:
Interest on long-term debt - 33,187 - -
Other interest 3 108 917 8,911
---------------- --------------- ------------- --------------
Interest expense, net 3 33,295 917 8,911
---------------- --------------- ------------- --------------
Other (Loss)/Income, Net
Equity in loss of subsidiaries (2,343) - - -
Other, net 34 478 821 (1,174)
---------------- --------------- ------------- --------------
Other (loss)/income, net (2,309) 478 821 (1,174)
---------------- --------------- ------------- --------------
(Loss)/Income Before Income Tax (Benefit)/Expense (3,079) 65,827 (3,181) (69,977)
Income Tax (Benefit)/Expense (304) 27,320 (1,029) (26,372)
---------------- --------------- ------------- --------------
Net (Loss)/Income $ (2,775) $ 38,507 $ (2,152) $ (43,605)
================ =============== ============= ==============
Note: Individual columns may not add to Consolidated
due to rounding. The accompanying notes are an integral
part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
F-55
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Select Energy
Mode 1 Services, Inc.
Communications, (consolidated) Woods Network
Inc. (b) Services, Inc. Eliminations Consolidated
--------------- -------------- -------------- ------------ ------------
Operating Revenues $ 194 $ 150,217 $ 16,474 $ 171,291 $ 2,586,355
---------------- -------------- -------------- ------------ ------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power - - - 143,474 2,166,788
Other 129 138,674 1,339 15,452 266,568
Maintenance - 621 14,382 12,365 69,606
Depreciation 38 1,294 47 4,406 15,320
Amortization - - - - 3,749
Taxes other than income taxes 27 2,681 82 - 17,448
---------------- -------------- -------------- ------------ ------------
Total operating expenses 194 143,270 15,850 175,697 2,539,479
---------------- -------------- -------------- ------------ ------------
Operating (Loss)/Income - 6,947 624 (4,406) 46,876
---------------- -------------- -------------- ------------ ------------
Interest Expense:
Interest on long-term debt - - - - 33,187
Other interest 1 5,941 300 - 16,180
---------------- -------------- -------------- ------------ ------------
Interest expense, net 1 5,941 300 - 49,367
---------------- -------------- -------------- ------------ ------------
Other (Loss)/Income, Net
Equity in loss of subsidiaries - - - (2,343) -
Other, net 10 6,585 (1) 4,406 2,347
---------------- -------------- -------------- ------------ ------------
Other (loss)/income, net 10 6,585 (1) 2,063 2,347
---------------- -------------- -------------- ------------ ------------
(Loss)/Income Before Income Tax (Benefit)/Expense 9 7,591 323 (2,343) (144)
Income Tax (Benefit)/Expense (139) 3,019 136 - 2,631
---------------- -------------- -------------- ------------ ------------
Net (Loss)/Income $ 148 $ 4,572 $ 187 $ (2,343) $ (2,775)
================ ============== ============== ============ ============
F-56
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Northeast
Generation
Services Select
NU Northeast Company Energy, Inc.
Enterprises, Generation (consolidated) (consolidated)
Inc. Company (b) (b)
--------------- ------------- ------------- -----------------
Balance at beginning of period $ (127,445) $ 32,259 $ 9 $ (225,781)
Additions:
Net (loss)/income (2,775) 38,507 (2,152) (43,605)
--------------- ------------- ------------- -----------------
(130,220) 70,766 (2,143) (269,386)
--------------- ------------- ------------- -----------------
Deductions:
Dividends declared:
Common stock $6,500,000 per share - 39,000 - -
--------------- ------------- ------------- -----------------
- 39,000 - -
--------------- ------------- ------------- -----------------
Balance at end of period $ (130,220) $ 31,766 $ (2,143) $ (269,386)
=============== ============= ============= =================
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Northeast
Generation
Services Select
NU Northeast Company Energy, Inc.
Enterprises, Generation (consolidated) (consolidated)
Inc. Company (b) (b)
--------------- ------------- ------------- -----------------
Balance at beginning of period $ 1,365,959 $ 408,098 $ 15,549 $ 249,337
Capital contributions from:
NU Enterprises, Inc. - - - 37,000
Northeast Utilities 17,200 - - -
Allocation of benefits - ESOP (279) (3) (94) (113)
--------------- ------------- ------------- -----------------
Balance at end of period $ 1,382,880 $ 408,095 $ 15,455 $ 286,224
=============== ============= ============= =================
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
F-57
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Select Energy
Mode 1 Services, Inc.
Communications, (consolidated) Woods Network
Inc. (b) Services, Inc. Eliminations Consolidated
--------------- -------------- -------------- ------------ ------------
Balance at beginning of period $ (17,354) $ 5,934 $ 223 $ (204,710) $ (127,445)
Additions:
Net (loss)/income 148 4,572 187 (2,343) (2,775)
--------------- -------------- -------------- ------------ ------------
(17,206) 10,506 410 (207,053) (130,220)
--------------- -------------- -------------- ------------ ------------
Deductions:
Dividends declared:
Common stock $6,500,000 per share - - - 39,000 -
--------------- -------------- -------------- ------------ ------------
- - - 39,000 -
--------------- -------------- -------------- ------------ ------------
Balance at end of period $ (17,206) $ 10,506 $ 410 $ (246,053) $ (130,220)
=============== ============== ============== ============ ============
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Select Energy
Mode 1 Services, Inc.
Communications, (consolidated) Woods Network
Inc. (b) Services, Inc. Eliminations Consolidated
--------------- -------------- -------------- ------------ ------------
Balance at beginning of period $ 29,357 $ 25,096 $ 2,650 $ 1,433,070 $ 662,976
Capital contributions from:
NU Enterprises, Inc. 2,500 - - 39,500 -
Northeast Utilities - - - - 17,200
Allocation of benefits - ESOP - (67) - (277) (279)
--------------- -------------- -------------- ------------ ------------
Balance at end of period $ 31,857 $ 25,029 $ 2,650 $ 1,472,293 $ 679,897
=============== ============== ============== ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
F-58
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Northeast
Generation
Services
NU Northeast Company
Enterprises, Generation (consolidated)
Inc. Company (b)
-------------------- -------------------- -------------------
Operating Activities:
Net (loss)/income $ (2,775) $ 38,507 $ (2,152)
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation - 9,784 551
Deferred income taxes and investment
tax credits, net - 21,681 735
Amortization - - 39
Prepaid pension - - (49)
Net other (uses)/sources of cash (270) 685 (254)
Changes in current assets and liabilities:
Unrestricted cash from counterparties - - -
Receivables and unbilled revenues, net (1,200) 577 (709)
Fuel, materials and supplies - (147) 53
Other current assets (excludes cash) (25) 1,618 1,723
Accounts payable 86 262 2,123
Accrued taxes - (447) 22
Other current liabilities 13,256 (195) (83)
-------------------- -------------------- -------------------
Net cash flows provided by/(used in) operating
activities 9,072 72,325 1,999
-------------------- -------------------- -------------------
Investing Activities:
Investments in plant:
Electric, gas and other utility plant - - -
Competitive energy assets - (11,133) -
-------------------- -------------------- -------------------
Cash flows used for investments in plant - (11,133) -
NU system Money Pool lending (15,200) - (2,200)
Other investment activities (11,136) (577) (829)
-------------------- -------------------- -------------------
Net cash flows used in investing activities (26,336) (11,710) (3,029)
-------------------- -------------------- -------------------
Financing Activities:
Issuance of long-term debt - - -
Reacquisitions and retirements of
long-term debt - (27,000) -
Advances from parent - - -
Cash dividends on common shares - (39,000) -
Capital contributions 17,200 - -
-------------------- -------------------- -------------------
Net cash flows provided by/(used in)
financing activities 17,200 (66,000) -
-------------------- -------------------- -------------------
Net (decrease)/increase in cash for the year (64) (5,385) (1,030)
Cash - beginning of year 64 18,248 2,257
-------------------- -------------------- -------------------
Cash - end of year $ - $ 12,863 $ 1,227
==================== ==================== ===================
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ - $ 34,261 $ 895
==================== ==================== ===================
Income taxes $ (282) $ 5,608 $ (3,705)
==================== ==================== ===================
Note: Individual columns may not add to Consolidated
due to rounding. The accompanying notes are
an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
F-59
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Select
Select Energy Woods
Energy, Inc. Mode 1 Services, Inc. Network
(consolidated) Communications, (consolidated) Services,
(b) Inc. (b) Inc. Eliminations Consolidated
-------------- --------------- -------------- --------- ------------ ------------
Operating Activities:
Net (loss)/income $ (43,605) $ 148 $ 4,572 $ 187 $ (2,343) $ (2,775)
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 8,012 38 1,294 47 4,406 15,320
Deferred income taxes and investment
tax credits, net (16,752) 5,619 65 161 - 11,510
Amortization 3,710 - - - - 3,749
Prepaid pension 1,489 - - - - 1,440
Net other (uses)/sources of cash (9,425) (193) (44,681) (607) (8,393) (46,355)
Changes in current assets and liabilities:
Unrestricted cash from counterparties (29,606) - - - - (29,606)
Receivables and unbilled revenues, net (32,134) 11 (7,676) 699 (1,434) (38,997)
Fuel, materials and supplies - - 1 (125) - (217)
Other current assets (excludes cash) (42,912) (111) (1,850) 4 3,118 (44,671)
Accounts payable 69,846 (549) 2,418 (278) 5,144 68,764
Accrued taxes (22,245) - 268 (102) (3,118) (19,386)
Other current liabilities 94,560 (1) 3,976 (15) 13,256 98,243
-------------- --------------- -------------- --------- ------------ ------------
Net cash flows provided by/(used in) operating
activities (19,062) 4,962 (41,613) (29) 10,636 17,019
-------------- --------------- -------------- --------- ------------ ------------
Investing Activities:
Investments in plant:
Electric, gas and other utility plant - (1) - - - (1)
Competitive energy assets (3,765) - (990) - - (15,888)
-------------- --------------- -------------- --------- ------------ ------------
Cash flows used for investments in plant (3,765) (1) (990) - - (15,889)
NU system Money Pool lending (165,000) (2,600) (5,200) (500) - (190,700)
Other investment activities - (4,861) (3,750) - (11,136) (10,017)
-------------- --------------- -------------- --------- ------------ ------------
Net cash flows used in investing activities (168,765) (7,462) (9,940) (500) (11,136) (216,606)
-------------- --------------- -------------- --------- ------------ ------------
Financing Activities:
Issuance of long-term debt - - 63,368 - - 63,368
Reacquisitions and retirements of
long-term debt - - (10,955) - - (37,956)
Advances from parent 144,000 - - - - 144,000
Cash dividends on common shares - - - - (39,000) -
Capital contributions 37,000 2,500 - - 39,500 17,200
-------------- --------------- -------------- --------- ------------ ------------
Net cash flows provided by/(used in)
financing activities 181,000 2,500 52,413 - 500 186,612
-------------- --------------- -------------- --------- ------------ ------------
Net (decrease)/increase in cash for the year (6,827) - 860 (529) - (12,975)
Cash - beginning of year 7,733 - 664 930 - 29,896
-------------- --------------- -------------- --------- ------------ ------------
Cash - end of year $ 906 $ - $ 1,524 $ 401 $ - $ 16,921
============== =============== ============== ========= ============ ============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 8,511 $ - $ (788) $ 300 $ - $ 43,179
============== =============== ============== ========= ============ ============
Income taxes $ 36,307 $ (5,646) $ 2,793 $ (25) $ - $ 35,048
============== =============== ============== ========= ============ ============
F-60
NORTHEAST GENERATION SERVICES COMPANY
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2003
(Thousands of Dollars)
Northeast Woods
Generation NGS E. S. Boulos Electrical
Services Company Mechanical, Inc. Company Co., Inc.
---------------- --------------- ----------- -----------
ASSETS
------
Current Assets:
Cash $ 527 $ 10 $ 691 $ -
Receivables, net 5,833 - 8,599 3,774
Accounts receivable from affiliated companies 3,869 - 294 -
Unbilled revenues 1,353 - 3,014 280
Taxes receivable 557 - - -
Fuel, materials, and supplies, at average cost 3 - 203 62
Prepayments and other 961 - - 5
---------------- --------------- ------------ -----------
13,103 10 12,801 4,121
---------------- --------------- ------------ -----------
Property, Plant and Equipment:
Competitive energy 2,997 - 1,131 254
Less: Accumulated depreciation 1,055 - 382 56
---------------- --------------- ------------ -----------
1,942 - 749 198
Construction work in progress 668 - - -
---------------- --------------- ------------ -----------
2,610 - 749 198
---------------- --------------- ------------ -----------
Deferred Debits and Other Assets:
Accumulated deferred income taxes 156 - - -
Goodwill - - 6,963 3,218
Purchased intangible assets, net - - 30 4,450
Prepaid pension 975 - - -
Investments in subsidiary companies, at equity 20,710 - - -
Other 1,604 - 45 -
---------------- --------------- ------------ -----------
23,445 - 7,038 7,668
---------------- --------------- ------------ -----------
Total Assets $ 39,158 $ 10 $ 20,588 $ 11,987
================ =============== ============ ===========
Eliminations Consolidated
------------- --------------
ASSETS
------
Current Assets:
Cash $ - $ 1,227
Receivables, net - 18,206
Accounts receivable from affiliated companies 312 3,851
Unbilled revenues - 4,647
Taxes receivable 557 -
Fuel, materials, and supplies, at average cost - 269
Prepayments and other - 965
----------- --------------
869 29,165
----------- --------------
Property, Plant and Equipment:
Competitive energy - 4,382
Less: Accumulated depreciation - 1,493
----------- --------------
- 2,889
Construction work in progress - 667
----------- --------------
- 3,556
----------- --------------
Deferred Debits and Other Assets:
Accumulated deferred income taxes 156 -
Goodwill - 10,182
Purchased intangible assets, net - 4,480
Prepaid pension - 975
Investments in subsidiary companies, at equity 20,710 -
Other - 1,649
----------- ---------------
20,866 17,286
----------- ---------------
Total Assets $ 21,735 $ 50,007
=========== ===============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-61
NORTHEAST GENERATION SERVICES COMPANY
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2003
(Thousands of Dollars)
Northeast Woods
Generation NGS E. S. Boulos Electrical
Services Company Mechanical, Inc. Company Co., Inc. Eliminations Consolidated
---------------- ---------------- ---------- ----------- ------------ ------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to affiliated companies $ 10,500 $ - $ - $ 800 $ - $ 11,300
Advance from parent, non-interest bearing - - 2,948 250 3,198 -
Accounts payable 4,934 - 1,943 1,200 - 8,078
Accounts payable to affiliated companies 2,701 2 855 55 312 3,301
Accrued taxes - - 424 156 557 22
Other 1,532 - 198 51 - 1,781
----------------- --------------- ------------ ----------- ------------ ------------
19,667 2 6,368 2,512 4,067 24,482
----------------- --------------- ------------ ----------- ------------ ------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes - - 348 223 156 415
Other 1,192 - 850 319 - 2,361
----------------- --------------- ------------ ----------- ------------ ------------
1,192 - 1,198 542 156 2,776
----------------- --------------- ------------ ----------- ------------ ------------
Capitalization:
Long-Term Debt from NU Parent 5,000 - - 4,450 - 9,450
----------------- --------------- ------------ ----------- ------------ ------------
Common Stockholder's Equity:
Common stock - - - - - -
Capital surplus, paid in 15,455 10 7,539 5,000 12,549 15,455
(Accumulated deficit)/Retained earnings (2,143) (2) 5,483 (517) 4,963 (2,143)
Accumulated other comprehensive loss (13) - - - - (13)
----------------- --------------- ------------ ----------- ------------ ------------
Common Stockholder's Equity 13,299 8 13,022 4,483 17,512 13,299
----------------- --------------- ------------ ----------- ------------ ------------
Total Capitalization 18,299 8 13,022 8,933 17,512 22,749
----------------- --------------- ------------ ----------- ------------ ------------
Total Liabilities and Capitalization $ 39,158 $ 10 $ 20,588 $ 11,987 $ 21,735 $ 50,007
================= =============== ============ =========== ============ ============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-62
NORTHEAST GENERATION SERVICES COMPANY
AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Northeast Woods
Generation NGS E. S. Boulos Electrical
Services Company Mechanical, Inc. Company Co., Inc.
------------------- ------------------ --------------- --------------
Operating Revenues $ 58,538 $ - $ 34,773 $ 9,459
------------------- ------------------ --------------- ---------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power 2,089 - - -
Other 44,027 - 1,255 1,490
Maintenance 12,188 - 34,215 8,185
Depreciation 229 - 178 144
Amortization 39 - - -
Taxes other than income taxes 1,761 - 55 -
------------------- ------------------ --------------- ---------------
Total operating expenses 60,333 - 35,703 9,819
------------------- ------------------ --------------- ---------------
Operating Loss (1,795) - (930) (360)
------------------- ------------------ --------------- ---------------
Interest Expense, net 591 - - 326
------------------- ------------------ --------------- ---------------
Other (Loss)/Income, Net
Equity in loss of subsidiaries (1,047) - - -
Other, net 749 - 68 3
------------------- ------------------ --------------- ---------------
Other (loss)/income, net (298) - 68 3
------------------- ------------------ --------------- ---------------
Loss Before Income Tax Benefit (2,684) - (862) (683)
Income Tax Benefit (532) - (224) (274)
------------------- ------------------ --------------- ---------------
Net Loss $ (2,152) $ - $ (638) $ (409)
=================== ================== =============== ===============
Eliminations Consolidated
------------- ---------------
Operating Revenues $ 416 $ 102,354
------------- ---------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power - 2,089
Other 416 46,356
Maintenance - 54,588
Depreciation - 551
Amortization - 39
Taxes other than income taxes - 1,816
------------- ---------------
Total operating expenses 416 105,439
------------- ---------------
Operating Loss - (3,085)
------------- ---------------
Interest Expense, net - 917
------------- ---------------
Other (Loss)/Income, Net
Equity in loss of subsidiaries (1,047) -
Other, net - 821
------------- ---------------
Other (loss)/income, net (1,047) 821
------------- ---------------
Loss Before Income Tax Benefit (1,047) (3,181)
Income Tax Benefit - (1,029)
------------- ---------------
Net Loss $ (1,047) $ (2,152)
============= ===============
Note: Individual columns may not add to Consolidated
due to rounding. The accompanying notes are an
integral part of these financial statements.
(a) Not covered by auditors' report.
F-63
NORTHEAST GENERATION SERVICES COMPANY
AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Northeast Woods
Generation NGS E. S. Boulos Electrical
Services Company Mechanical Inc. Company Co., Inc Eliminations Consolidated
------------------- ---------------- --------------- -------------- ------------- -------------
Balance at beginning of period $ 9 $ (2) $ 6,121 $ (108) $ 6,010 $ 9
Additions:
Net loss (2,152) - (638) (409) (1,047) (2,152)
------------------ --------------- --------------- -------------- ------------- -------------
Balance at end of period $ (2,143) $ (2) $ 5,483 $ (517) $ 4,963 $ (2,143)
=================== =============== =============== ============== ============= =============
NORTHEAST GENERATION SERVICES COMPANY
AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Northeast Woods
Generation NGS E. S. Boulos Electrical
Services Company Mechanical Inc. Company Co., Inc Eliminations Consolidated
------------------- ---------------- --------------- -------------- ------------- --------------
Balance at beginning of period $ 15,549 $ 10 $ 7,539 $ 5,000 $ 12,549 $ 15,549
Allocation of benefits - ESOP (94) - - - - (94)
------------------ ---------------- --------------- -------------- ------------- --------------
Balance at end of period $ 15,455 $ 10 $ 7,539 $ 5,000 $ 12,549 $ 15,455
================== ================ =============== ============== ============= ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-64
NORTHEAST GENERATION SERVICES COMPANY
AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Northeast NGS Woods
Generation Mechanical, E.S. Boulos Electrical,
Services Company Inc. Company Inc.
---------------- ------------- ----------- ------------
Operating Activities:
Net loss $ (2,152) $ - $ (638) $ (409)
Adjustments to reconcile to net cash provided by/
(used in) operating activities:
Depreciation 229 - 178 144
Deferred income taxes and investment tax credits, net 159 - 354 223
Amortization 39 - - -
Prepaid pension (49) - - -
Net other sources/(uses) of cash 351 - (780) 175
Changes in current assets and liabilities:
Receivables and unbilled revenues, net 75 - 1,836 (2,605)
Fuel, materials and supplies 2 - 20 32
Other current assets (excludes cash) 1,132 - - 143
Accounts payable 3,200 - (1,493) 401
Accrued taxes - - 364 156
Other current liabilities 306 - (490) 51
---------------- -------------- ------------ -------------
Net cash flows provided by/(used in) operating activities 3,292 - (649) (1,689)
---------------- -------------- ------------ -------------
Investing Activities:
NU system Money Pool (lending)/borrowing (3,000) - - 800
Other investment activities 234 - (16)
---------------- -------------- ------------ -------------
Net cash flows (used in)/provided by investing activities (2,766) - (16) 800
---------------- -------------- ------------ -------------
Net increase/(decrease) in cash for the year 526 - (665) (889)
Cash - beginning of year 1 10 1,356 890
---------------- -------------- ------------ -------------
Cash - end of year $ 527 $ 10 $ 691 $ 1
================ ============== ============ =============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 569 $ - $ - $ 326
================ ============== ============ =============
Income taxes $ (2,443) $ 1 $ (520) $ (743)
================ ============== ============ =============
Eliminations Consolidated
---------------- --------------
Operating Activities:
Net loss $ (1,047) $ (2,152)
Adjustments to reconcile to net cash provided by/
(used in) operating activities:
Depreciation - 551
Deferred income taxes and investment tax credits, net - 735
Amortization - 39
Prepaid pension - (49)
Net other sources/(uses) of cash (1) (254)
Changes in current assets and liabilities:
Receivables and unbilled revenues, net 14 (709)
Fuel, materials and supplies - 53
Other current assets (excludes cash) (446) 1,723
Accounts payable (14) 2,123
Accrued taxes 498 22
Other current liabilities (51) (83)
---------------- --------------
Net cash flows provided by/(used in) operating activities (1,047) 1,999
---------------- --------------
Investing Activities:
NU system Money Pool (lending)/borrowing - (2,200)
Other investment activities 1,047 (829)
---------------- --------------
Net cash flows (used in)/provided by investing activities 1,047 (3,029)
---------------- --------------
Net increase/(decrease) in cash for the year - (1,030)
Cash - beginning of year - 2,257
---------------- --------------
Cash - end of year $ - $ 1,227
================= ==============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ - $ 895
================= ==============
Income taxes $ - $ (3,705)
================= ==============
Note: Individual columns may not add to Consolidated
due to rounding. The accompanying notes are
an integral part of these financial statements.
(a) Not covered by auditors' report.
F-65
THIS PAGE INTENTIONALLY LEFT BLANK
F-66
SELECT ENERGY, INC. AND SUBSIDIARY
Consolidating Balance Sheet (a)
Assets
December 31, 2003
(Thousands of Dollars)
Select Select Energy
Energy, Inc. New York, Inc. Eliminations Consolidated
----------------- --------------- ------------ -------------
ASSETS
------
Current Assets:
Cash $ - $ 906 $ - $ 906
Unrestricted cash from counterparties 39,455 7,041 - 46,496
Special deposits 12,994 4,011 - 17,005
Receivables, net 330,758 58,102 - 388,860
Accounts receivable from affiliated companies 173,878 4,024 16,099 161,803
Unbilled revenues 48,703 - - 48,703
Taxes receivable 30,944 - 4,969 25,975
Notes receivable from affiliated companies - 11,000 11,000 -
Derivative assets 168,987 12,365 - 181,352
Prepaid option premiums 12,469 4,273 - 16,742
Prepayments and other 13,820 13,414 - 27,234
----------------- --------------- ------------ -------------
832,008 115,136 32,068 915,076
----------------- --------------- ------------ -------------
Property, Plant and Equipment:
Competitive energy 14,192 654 - 14,846
Less: Accumulated depreciation 11,779 369 - 12,148
----------------- --------------- ------------ -------------
2,413 285 - 2,698
Construction work in progress 6,167 - - 6,167
----------------- --------------- ------------ -------------
8,580 285 - 8,865
----------------- --------------- ------------ -------------
Deferred Debits and Other Assets:
Goodwill - 3,200 - 3,200
Purchased intangible assets, net 14,426 - - 14,426
Prepaid pension 1,421 - 1,026 395
Long-term accounts receivable 6,194 - - 6,194
Long-term contracts asset 39,339 - - 39,339
Investments in subsidiary company, at equity 37,999 - 37,999 -
Other 100 - 100 -
----------------- --------------- ------------ -------------
99,479 3,200 39,125 63,554
----------------- --------------- ------------ -------------
Total Assets $ 940,067 $ 118,621 $ 71,193 $ 987,495
================= =============== ============ =============
Note: Individual columns may not add to Consolidated due to rounding. The
accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-67
SELECT ENERGY, INC. AND SUBSIDIARY
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2003
(Thousands of Dollars)
Select Select Energy
Energy, Inc. New York, Inc. Eliminations Consolidated
----------------- --------------- ------------ -------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to affiliated companies $ 63,200 $ - $ 11,000 $ 52,200
Accounts payable 449,494 29,547 - 479,041
Accounts payable to affiliated companies 24,538 12,487 16,100 20,925
Accrued taxes - 4,969 4,969 -
Accrued interest 27 - - 27
Derivative liabilities 103,161 1,800 - 104,961
Unearned option premiums 12,244 - - 12,244
Other 76,189 9,527 - 85,716
----------------- --------------- ------------ -------------
728,853 58,330 32,069 755,114
----------------- --------------- ------------ -------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes 10,653 6,116 - 16,769
Deferred pension costs - 1,026 1,026 -
Other 8,359 451 99 8,711
----------------- --------------- ------------ -------------
19,012 7,593 1,125 25,480
----------------- --------------- ------------ -------------
Capitalization:
Long-Term Debt from NU Parent 150,000 14,699 - 164,699
----------------- --------------- ------------ -------------
Common Stockholder's Equity:
Common stock - 10 10 -
Capital surplus, paid in 286,224 9,957 9,957 286,224
(Accumulated deficit)/Retained earnings (269,386) 22,753 22,753 (269,386)
Accumulated other comprehensive income 25,364 5,279 5,279 25,364
----------------- --------------- ------------ -------------
Common Stockholder's Equity 42,202 37,999 37,999 42,202
----------------- --------------- ------------ -------------
Total Capitalization 192,202 52,698 37,999 206,901
----------------- --------------- ------------ -------------
Total Liabilities and Capitalization $ 940,067 $ 118,621 $ 71,193 $ 987,495
================= =============== ============ =============
Note: Individual columns may not add to Consolidated due to rounding. The
accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-68
SELECT ENERGY, INC.
AND SUBSIDIARY
Consolidating Statement of Income (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Select Select Energy
Energy, Inc. New York, Inc. Eliminations Consolidated
---------------- --------------- ------------ ----------------
Operating Revenues $ 2,149,828 $ 380,628 $ 185,863 $ 2,344,593
---------------- --------------- ------------ ----------------
Operating Expenses:
Operation-
Purchased power, net interchange power
and capacity 2,124,909 369,126 185,863 2,308,173
Other 71,800 9,341 - 81,140
Maintenance 6 - - 6
Depreciation 8,012 - - 8,012
Amortization 3,710 - - 3,710
Taxes other than income taxes 5,089 (1,645) - 3,444
---------------- --------------- ------------ ----------------
Total operating expenses 2,213,526 376,822 185,863 2,404,485
---------------- --------------- ------------ ----------------
Operating (Loss)/Income (63,698) 3,806 - (59,892)
---------------- --------------- ------------ ----------------
Interest Expense, Net 8,417 494 - 8,911
---------------- --------------- ------------ ----------------
Other Income/(Loss), Net
Equity in earnings of subsidiary 2,850 - 2,850 -
Other, net (1,422) 248 - (1,174)
---------------- --------------- ------------ ----------------
Other income/(loss), net 1,428 248 2,850 (1,174)
---------------- --------------- ------------ ----------------
(Loss)/Income Before Income Tax (Benefit)/Expense (70,687) 3,560 2,850 (69,977)
Income Tax (Benefit)/Expense (27,082) 710 - (26,372)
---------------- --------------- ------------ ----------------
Net (Loss)/Income $ (43,605) $ 2,850 $ 2,850 $ (43,605)
================ =============== ============ ================
Note: Individual columns may not add to Consolidated due to rounding. The
accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-69
SELECT ENERGY, INC.
AND SUBSIDIARY
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Select Select Energy
Energy, Inc. New York, Inc. Eliminations Consolidated
---------------- --------------- ------------ --------------
Balance at beginning of period $ (225,781) $ 19,903 $ 19,903 $ (225,781)
Additions:
Net (loss)/income (43,605) 2,850 2,850 (43,605)
---------------- --------------- ------------ --------------
Balance at end of period $ (269,386) $ 22,753 $ 22,753 $ (269,386)
================ =============== ============ ==============
SELECT ENERGY, INC.
AND SUBSIDIARY
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Select Select Energy
Energy, Inc. New York, Inc. Eliminations Consolidated
---------------- --------------- ------------ --------------
Balance at beginning of period $ 249,337 $ 9,976 $ 9,976 $ 249,337
Capital contributions from:
NU Enterprises, Inc. 37,000 - - 37,000
Allocation of benefits - ESOP (113) (19) (19) (113)
---------------- --------------- ------------ --------------
Balance at end of period $ 286,224 $ 9,957 $ 9,957 $ 286,224
================ =============== ============ ==============
Note: Individual columns may not add to Consolidated due to rounding. The
accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-70
SELECT ENERGY INC. AND SUBSIDIARY
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Select Energy
Select New York,
Energy, Inc. Inc. Eliminations Consolidated
------------- ---------------- -------------- --------------
Operating Activities:
Net (loss)/income $ (43,605) $ 2,850 $ 2,850 $ (43,605)
Adjustments to reconcile to net cash (used in)/
provided by operating activities:
Depreciation 8,012 - - 8,012
Deferred income taxes and investment tax credits, net (10,603) (6,149) - (16,752)
Amortization 3,710 - - 3,710
Prepaid pension 836 - (652) 1,489
Net other (uses)/sources of cash (15,289) 6,497 632 (9,425)
Changes in current assets and liabilities:
Unrestricted cash from counterparties (26,910) (2,696) - (29,606)
Receivables and unbilled revenues, net (18,641) (22,349) (8,856) (32,134)
Other current assets (excludes cash) (61,159) 15,377 (2,872) (42,912)
Accounts payable 66,239 12,464 8,857 69,846
Accrued taxes (19,838) 2,562 4,969 (22,245)
Other current liabilities 91,813 1,618 (1,128) 94,560
------------- ---------------- -------------- --------------
Net cash flows (used in)/provided by operating activities (25,435) 10,174 3,800 (19,062)
------------- ---------------- -------------- --------------
Investing Activities:
Competitive energy assets (3,765) - - (3,765)
NU system Money Pool lending (154,000) (11,000) - (165,000)
Other investment activities (3,800) - (3,800) -
------------- ---------------- -------------- --------------
Net cash flows used in investing activities (161,565) (11,000) (3,800) (168,765)
------------- ---------------- -------------- --------------
Financing Activities:
Advance from (repayment to) NU parent 150,000 (6,000) - 144,000
Capital contributions 37,000 - - 37,000
------------- ---------------- -------------- --------------
Net cash flows provided by/(used in) financing activities 187,000 (6,000) - 181,000
------------- ---------------- -------------- --------------
Net decrease in cash for the year - (6,826) - (6,827)
Cash - beginning of year - 7,732 - 7,733
------------- ---------------- -------------- --------------
Cash - end of year $ - $ 906 $ - $ 906
============= ================ ============== ==============
Supplemental Cash Flow Information:
Cash paid during the year for:
Interest, net of amounts capitalized $ 8,017 $ 494 $ - $ 8,511
============= ================ ============== ==============
Income taxes $ 34,911 $ 1,396 $ - $ 36,307
============= ================ ============== ==============
Note: Individual columns may not add to Consolidated
due to rounding. The accompanying notes are
an integral part of these financial statements.
(a) Not covered by auditors' report.
F-71
THIS PAGE INTENTIONALLY LEFT BLANK
F-72
SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2003
(Thousands of Dollars)
Select Energy Select Energy Reeds Ferry HEC/Tobyhanna
Services, Inc. Contracting, Inc. Supply Co., Inc. Energy Project, Inc.
-------------- ----------------- ---------------- --------------------
ASSETS
------
Current Assets:
Cash $ 1,043 $ 475 $ 5 $ -
Special deposits 27,697 - - 4,314
Receivables, net 9,121 17,502 1 766
Accounts receivable from affiliated companies 19,013 - 109 -
Other material and supplies, at average cost - 330 - -
Prepayments and other 2,303 1,240 - -
-------------- ----------------- ---------------- ---------------------
59,177 19,547 115 5,080
-------------- ----------------- ---------------- ---------------------
Property, Plant and Equipment:
Competitive energy 2,899 4,674 - -
Less: Accumulated depreciation 2,038 2,669 - -
-------------- ----------------- ---------------- ---------------------
861 2,005 - -
-------------- ----------------- ---------------- ---------------------
Deferred Debits and Other Assets:
Goodwill 505 17,220 247 -
Investments in subsidiary companies, at equity 22,233 - - -
Other 72,715 - - 27,916
-------------- ----------------- ---------------- ---------------------
95,453 17,220 247 27,916
-------------- ----------------- ---------------- ---------------------
Total Assets $ 155,491 $ 38,772 $ 362 $ 32,996
============== ================= ================ =====================
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-73
SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2003
(Thousands of Dollars)
HEC/CJTS
Energy
Center LLC Eliminations Consolidated
-------------- ----------------- ----------------
ASSETS
------
Current Assets:
Cash $ 1 $ - $ 1,524
Special deposits - - 32,011
Receivables, net - - 27,391
Accounts receivable from affiliated companies - 19,122 -
Other material and supplies, at average cost - - 330
Prepayments and other - - 3,542
-------------- ----------------- ----------------
1 19,122 64,798
-------------- ----------------- ----------------
Property, Plant and Equipment:
Competitive energy - - 7,572
Less: Accumulated depreciation - - 4,707
-------------- ----------------- ----------------
- - 2,865
-------------- ----------------- ----------------
Deferred Debits and Other Assets:
Goodwill - - 17,973
Investments in subsidiary companies, at equity - 22,233 -
Other - 2,220 98,410
-------------- ----------------- ----------------
- 24,453 116,383
-------------- ----------------- ----------------
Total Assets $ 1 $ 43,575 $ 184,046
============== ================= ================
F-74
SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2003
(Thousands of Dollars)
Select Energy Select Energy Reeds Ferry HEC/Tobyhanna
Services, Inc. Contracting, Inc. Supply Co., Inc. Energy Project, Inc.
-------------- ----------------- ---------------- ---------------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to affiliated companies $ 1,250 $ 3,790 $ - $ -
Long-term debt - current portion 6,456 - - 577
Accounts payable 2,696 4,029 - -
Accounts payable to affiliated companies 4,804 9,172 404 7,109
Accrued taxes 355 238 - 25
Accrued interest 903 - - 693
Other 8,845 981 - 318
-------------- ----------------- ---------------- ---------------------
25,309 18,210 404 8,722
-------------- ----------------- ---------------- ---------------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes - 1,276 - -
Other - 1,704 - -
-------------- ----------------- ---------------- ---------------------
- 2,980 - -
-------------- ----------------- ---------------- ---------------------
Capitalization:
Long-Term Debt 94,647 - - 23,372
-------------- ----------------- ---------------- ---------------------
Common Stockholder's Equity:
Common stock - - 4 -
Capital surplus, paid in 25,029 15,080 3 -
Retained earnings/(accumulated deficit) 10,506 2,502 (49) 902
-------------- ----------------- ---------------- ---------------------
Common Stockholder's Equity 35,535 17,582 (42) 902
-------------- ----------------- ---------------- ---------------------
Total Capitalization 130,182 17,582 (42) 24,274
-------------- ----------------- ---------------- ---------------------
Total Liabilities and Capitalization $ 155,491 $ 38,772 $ 362 $ 32,996
============== ================= ================ =====================
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-75
SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2003
(Thousands of Dollars)
HEC/CJTS
Energy
Center LLC Eliminations Consolidated
-------------- ----------------- ----------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to affiliated companies $ - $ 3,790 $ 1,250
Long-term debt - current portion - - 7,033
Accounts payable - - 6,725
Accounts payable to affiliated companies - 19,122 2,368
Accrued taxes - - 618
Accrued interest - - 1,595
Other - - 10,144
-------------- ----------------- ----------------
- 22,912 29,733
-------------- ----------------- ----------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes - 517 759
Other - 1,704 -
-------------- ----------------- ----------------
- 2,221 759
-------------- ----------------- ----------------
Capitalization:
Long-Term Debt - - 118,019
-------------- ----------------- ----------------
Common Stockholder's Equity:
Common stock - 4 -
Capital surplus, paid in 12 15,095 25,029
Retained earnings/(accumulated deficit) (11) 3,343 10,506
-------------- ----------------- ----------------
Common Stockholder's Equity 1 18,442 35,535
-------------- ----------------- ----------------
Total Capitalization 1 18,442 153,554
-------------- ----------------- ----------------
Total Liabilities and Capitalization $ 1 $ 43,575 $ 184,046
============== ================= ================
F-76
SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Select Energy Select Energy Reeds Ferry HEC/Tobyhanna
Services, Inc. Contracting, Inc. Supply Co., Inc. Energy Project, Inc.
-------------- ----------------- ---------------- ---------------------
Operating Revenues $ 79,647 $ 71,293 $ 1,177 $ -
-------------- ----------------- ---------------- ---------------------
Operating Expenses:
Operation 73,522 65,874 1,177 -
Maintenance 15 606 - -
Depreciation 255 1,039 - -
Taxes other than income taxes 529 2,152 - -
-------------- ----------------- ---------------- ---------------------
Total operating expenses 74,321 69,671 1,177 -
-------------- ----------------- ---------------- ---------------------
Operating Income 5,326 1,622 - -
-------------- ----------------- ---------------- ---------------------
Interest Expense, Net 3,870 179 - 1,892
-------------- ----------------- ---------------- ---------------------
Other Income/(Loss), Net
Equity in earnings of subsidiaries 1,040 - - -
Other, net 4,344 (39) - 2,280
-------------- ----------------- ---------------- ---------------------
Other income/(loss), net 5,384 (39) - 2,280
-------------- ----------------- ---------------- ---------------------
Income Before Income Tax Expense 6,840 1,404 - 388
Income Tax Expense 2,268 558 - 193
-------------- ----------------- ---------------- ---------------------
Net Income $ 4,572 $ 846 $ - $ 195
============== ================= ================ =====================
Note: Individual columns may not add to Consolidated due to
rounding. The accompanying notes are an integral part of
these financial statements.
(a) Not covered by auditors' report.
F-77
SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2003
(Thousands of Dollars)
HEC/CJTS
Energy
Center LLC Eliminations Consolidated
-------------- ----------------- ----------------
Operating Revenues $ - $ 1,900 $ 150,217
-------------- ----------------- ----------------
Operating Expenses:
Operation - 1,900 138,674
Maintenance - - 621
Depreciation - - 1,294
Taxes other than income taxes - - 2,681
-------------- ----------------- ----------------
Total operating expenses - 1,900 143,270
-------------- ----------------- ----------------
Operating Income - - 6,947
-------------- ----------------- ----------------
Interest Expense, Net - - 5,941
-------------- ----------------- ----------------
Other Income/(Loss), Net
Equity in earnings of subsidiaries - 1,040 -
Other, net - - 6,585
-------------- ----------------- ----------------
Other income/(loss), net - 1,040 6,585
-------------- ----------------- ----------------
Income Before Income Tax Expense - 1,040 7,591
Income Tax Expense - - 3,019
-------------- ----------------- ----------------
Net Income $ - $ 1,040 $ 4,572
============== ================= ================
F-78
SELECT ENERGY SERVICES INC. AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Select Energy Select Energy Reeds Ferry HEC/Tobyhanna
Services, Inc. Contracting, Inc. Supply Co., Inc. Energy Project, Inc.
-------------- ----------------- ---------------- ---------------------
Balance at beginning of period $ 5,934 $ 1,656 $ (49) $ 707
Additions:
Net income 4,572 846 - 195
-------------- ----------------- ---------------- ---------------------
Balance at end of period $ 10,506 $ 2,502 $ (49) $ 902
============== ================= ================ =====================
SELECT ENERGY SERVICES INC. AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Select Energy Select Energy Reeds Ferry HEC/Tobyhanna
Services, Inc. Contracting, Inc. Supply Co., Inc. Energy Project, Inc.
-------------- ----------------- ---------------- ---------------------
Balance at beginning of period $ 25,096 $ 15,124 $ 3 $ -
Allocation of benefits - ESOP (67) (44) - -
-------------- ----------------- ---------------- ---------------------
Balance at end of period $ 25,029 $ 15,080 $ 3 $ -
============== ================= ================ =====================
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-79
SELECT ENERGY SERVICES INC. AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2003
(Thousands of Dollars)
HEC/CJTS
Energy
Center LLC Eliminations Consolidated
-------------- ----------------- ----------------
Balance at beginning of period $ (11) $ 2,303 $ 5,934
Additions:
Net income - 1,040 4,572
-------------- ----------------- ----------------
Balance at end of period $ (11) $ 3,343 $ 10,506
============== ================= ================
SELECT ENERGY SERVICES INC. AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2003
(Thousands of Dollars)
HEC/CJTS
Energy
Center LLC Eliminations Consolidated
-------------- ----------------- ----------------
Balance at beginning of period $ 12 $ 15,139 $ 25,096
Allocation of benefits - ESOP - (44) (67)
-------------- ----------------- ----------------
Balance at end of period $ 12 $ 15,095 $ 25,029
============== ================= ================
F-80
SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2003
(Thousands of Dollars)
Select Energy Select Energy Reeds Ferry HEC/Tobyhanna
Services, Inc. Contracting, Inc. Supply Co., Inc. Energy Project, Inc.
-------------- ----------------- ---------------- ---------------------
Operating Activities:
Net income $ 4,572 $ 846 $ - $ 195
Adjustments to reconcile to net cash (used in)/
provided by operating activities:
Depreciation 255 1,039 - -
Deferred income taxes and investment tax credits,
net (147) 212 - -
Net other (uses)/sources of cash (43,705) (1,937) - 915
Changes in current assets and liabilities:
Receivables and unbilled revenues, net (10,041) (3,670) (32) 131
Other materials and supplies - 1 - -
Other current assets (excludes cash) (831) (676) - -
Accounts payable 2,619 4,939 32 764
Accrued taxes 355 (315) - (116)
Other current liabilities 4,494 (427) - (90)
-------------- ----------------- ---------------- ---------------------
Net cash flows (used in)/provided by operating
activities (42,429) 12 - 1,799
-------------- ----------------- ---------------- ---------------------
Investing Activities:
Competitive energy assets (990) - - -
NU system Money Pool lending (5,200) - - -
Other investment activities (3,989) - - (757)
-------------- ----------------- ---------------- ---------------------
Net cash flows used in investing activities (10,179) - - (757)
-------------- ----------------- ---------------- ---------------------
Financing Activities:
Issuance of long-term debt 63,368 - - -
Reacquisitions and retirements of long-term debt (9,913) - - (1,042)
-------------- ----------------- ---------------- ---------------------
Net cash flows provided by/(used in) financing
activities 53,455 - - (1,042)
-------------- ----------------- ---------------- ---------------------
Net increase in cash for the year 847 12 - -
Cash - beginning of year 196 463 5 -
-------------- ----------------- ---------------- ---------------------
Cash - end of year $ 1,043 $ 475 $ 5 $ -
============== ================= ================ =====================
Supplemental Cash Flow Information:
Cash (refunded)/paid during the year for:
Interest, net of amounts capitalized $ (788) $ - $ - $ -
============== ================= ================ =====================
Income taxes $ 1,723 $ 736 $ 2 $ 332
============== ================= ================ =====================
Note: Individual columns may not add to Consolidated
due to rounding. The accompanying notes are
an integral part of these financial statements.
(a) Not covered by auditors' report.
F-81
SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2003
(Thousands of Dollars)
HEC/CJTS
Energy
Center LLC Eliminations Consolidated
-------------- ----------------- ----------------
Operating Activities:
Net income $ - $ 1,040 $ 4,572
Adjustments to reconcile to net cash (used in)/
provided by operating activities:
Depreciation - - 1,294
Deferred income taxes and investment tax credits,
net - - 65
Net other (uses)/sources of cash - (43) (44,681)
Changes in current assets and liabilities:
Receivables and unbilled revenues, net - (5,938) (7,676)
Other materials and supplies - - 1
Other current assets (excludes cash) - 344 (1,850)
Accounts payable - 5,938 2,418
Accrued taxes - (344) 268
Other current liabilities - - 3,976
-------------- ----------------- ----------------
Net cash flows (used in)/provided by operating
activities - 997 (41,613)
-------------- ----------------- ----------------
Investing Activities:
Competitive energy assets - - (990)
NU system Money Pool lending - (1) (5,200)
Other investment activities - (996) (3,750)
-------------- ----------------- ----------------
Net cash flows used in investing activities - (997) (9,940)
-------------- ----------------- ----------------
Financing Activities:
Issuance of long-term debt - - 63,368
Reacquisitions and retirements of long-term debt - - (10,955)
-------------- ----------------- ----------------
Net cash flows provided by/(used in) financing
activities - - 52,413
-------------- ----------------- ----------------
Net increase in cash for the year - - 860
Cash - beginning of year 1 - 664
-------------- ----------------- ----------------
Cash - end of year $ 1 $ - $ 1,524
============== ================= ================
Supplemental Cash Flow Information:
Cash (refunded)/paid during the year for:
Interest, net of amounts capitalized $ - $ - $ (788)
============== ================= ================
Income taxes $ - $ - $ 2,793
============== ================= ================
F-82
NOTES TO FINANCIAL STATEMENTS
NU Reference is made to "Notes to Consolidated Financial
Statements" contained on pages 52 through 77 in NU's 2003
Annual Report to shareholders, which information is
incorporated herein by reference.
CL&P Reference is made to "Notes to Consolidated Financial
Statements" contained on pages 21 through 35 in CL&P's 2003
Annual Report, which information is incorporated herein by
reference.
PSNH Reference is made to "Notes to Consolidated Financial
Statements" contained on pages 19 through 31 in PSNH's 2003
Annual Report, which information is incorporated herein by
reference.
WMECO Reference is made to "Notes to Consolidated Financial
Statements" contained on pages 19 through 31 in WMECO's 2003
Annual Report, which information is incorporated herein by
reference.
F-83
EXHIBITS
The following exhibits are incorporated by reference to the indicated SEC file
number, unless a single asterisk appears next to the exhibit reference. A single
asterisk indicates exhibits which are filed herewith. A # further indicates that
the exhibit is filed under cover of Form SE.
EXHIBIT
NUMBER DESCRIPTION
A. ANNUAL REPORTS
Annual Reports filed under the Securities Exchange Act of 1934
A.1 2003 Annual Report on Form 10-K for NU. (File No. 1-5324)
A.2 2003 Annual Report on Form 10-K for CL&P. (File No. 0-11419)
A.3 2003 Annual Report on Form 10-K for PSNH. (File No. 1-6392)
A.4 2003 Annual Report on Form 10-K for WMECO. (File No. 0-7624)
B. CHARTERS, ARTICLES OF INCORPORATION, TRUST AGREEMENTS, BY-LAWS, AND
OTHER FUNDAMENTAL DOCUMENTS OF ORGANIZATION
B.1 Northeast Utilities
B.1.1 Declaration of Trust of NU, as
amended through May 13, 2003.
(Exhibit 4.1 to NU Form S-8 filed
June 11, 2003, File No. 333-106008).
B.2 The Connecticut Light and Power Company
B.2.1 Certificate of Incorporation of
CL&P, restated to March 22, 1994.
(Exhibit 3.2.1, 1993 NU Form 10-K,
File No. 1-5324)
B.2.2 Certificate of Amendment to
Certificate of Incorporation of
CL&P, dated December 26, 1996.
(Exhibit 3.2.2, 1996 NU Form 10-K,
File No. 1-5324)
B.2.3 Certificate of Amendment to
Certificate of Incorporation of
CL&P, dated April 27, 1998. (Exhibit
3.2.3, 1998 NU Form 10-K, File No.
1-5324)
B.2.4 By-Laws of CL&P, as amended to
January 1, 1997. (Exhibit 3.2.3,
1996 NU Form 10-K, File No. 1-5324)
E-1
B.3 Public Service Company of New Hampshire
B.3.1 Articles of Incorporation, as amended
to May 16, 1991. (Exhibit 3.3.1, 1993
NU Form 10-K, File No. 1-5324)
B.3.2 By-Laws of PSNH, as amended to
November 1, 1993. (Exhibit 3.3.2,
1993 NU Form 10-K, File No. 1-5324)
B.4 Western Massachusetts Electric Company
B.4.1 Articles of Organization of WMECO,
restated to February 23, 1995.
(Exhibit 3.4.1, 1994 NU Form 10-K,
File No. 1-5324)
B.4.2 By-Laws of WMECO, as amended to May
1, 2000. (Exhibit 3.1, 2000 NU Form
10-Q for the Quarter Ended June 30,
2000, File No. 1-5324)
B.5 North Atlantic Energy Corporation
B.5.1 Articles of Incorporation of NAEC
dated September 20, 1991. (Exhibit
3.5.1, 1993 NU Form 10-K, File No.
1-5324)
B.5.2 Articles of Amendment dated October
16, 1991, and June 2, 1992, to
Articles of Incorporation of NAEC.
(Exhibit 3.5.2, 1993 NU Form 10-K,
File No. 1-5324)
B.5.3 By-Laws of NAEC, as amended to June
1, 2000. (Exhibit 3.1, 2000 NU Form
10-Q for the Quarter Ended September
30, 2000, File No. 1-5324)
B.6 The Quinnehtuk Company
B.6.1 Articles of Organization of The
Quinnehtuk Company dated December
14, 1928, and Articles of Amendment
dated December 18, 1930. (Exhibit
B.6.1, 1997 NU Form U5S, File No.
1-5324)
B.6.2 Amendment to Certificate of
Incorporation of The Quinnehtuk
Company dated June 10, 1975.
(Exhibit B.6.2, 1993 NU Form U5S,
File No. 1-5324)
B.6.3 By-Laws of The Quinnehtuk Company as
amended to February 11, 1998.
(Exhibit B.6.3, 1997 NU Form U5S,
File No. 1-5324)
B.7 The Rocky River Realty Company
B.7.1 Certificate of Incorporation, as
amended, of The Rocky River Realty
Company. (Exhibit 1.9, 1977 NU Form
U5S, File No. 30-246)
E-2
B.7.2 Certificate of Amendment to Certificate
of Incorporation of The Rocky River
Realty Company, dated December 26, 1996.
(Exhibit B.7.2, 1996 NU U5S, File No. 1-5324)
B.7.3 Certificate of Amendment to Certificate
of Incorporation of the Rocky River
Realty Company, dated April 27, 1998.
(Exhibit B.7.3, 1997 NU Form U5S, File
No. 1-5324)
B.7.4 By-Laws of The Rocky River Realty Company,
as to February 11, 1998. (Exhibit B.7.4,
1997 NU Form U5S, File No. 1-5324)
B.8 Electric Power, Incorporated
B.8.1 Charter of Electric Power,
Incorporated dated January 1, 1955.
(Exhibit B.9, 1983 NU Form U5S, File
No. 30-246)
B.8.2 Amendment to Charter of Electric
Power, Incorporated (Special Act No.
133, Volume XXXI, page 103, approved
June 11, 1963). (Exhibit B.9.1, 1983
NU Form U5S, File No. 30-246)
B.8.3 Certificate of Amendment to
Certificate of Incorporation of
Electric Power, Incorporated, dated
December 26, 1996. (Exhibit B.10.3,
1996 NU Form U5S, File No. 1-5324)
B.8.4 By-Laws of Electric Power,
Incorporated as amended to February
15, 1952. (Exhibit B.9.2, 1983 NU
Form U5S, File No. 30-246)
B.9 The Nutmeg Power Company
B.9.1 Certificate of Organization of The
Nutmeg Power Company dated July 19,
1954. (Exhibit B.11, 1983 NU Form
U5S, File No. 30-246)
B.9.2 Certificate of Amendment to the
Certificate of Incorporation of
The Nutmeg Power Company, dated
December 26, 1996. B.11.2, 1996
NU Form U5S, File No. 1-5324)
B.9.3 By-Laws of The Nutmeg Power Company
as amended to January 1, 1997.
(Exhibit B.11.3, 1996 NU Form U5S,
File No. 1-5324)
E-3
B.10 The Connecticut Steam Company
B.10.1 Certificate of Incorporation of
The Connecticut Steam Company dated
May 13, 1965, including Special Act
No. 325, an Act Incorporating The
Connecticut Steam Company (Special
Acts 1963, Senate Bill No. 704,
approved June 24, 1963). (Exhibit
B.12, 1983 NU Form U5S, File No.
30-246)
B.10.2 Certificate of Amendment to
Certificate of Incorporation of The
Connecticut Steam Company,
dated December 26, 1996. (Exhibit
B.12.2, 1996 NU Form U5S, File No.
1-5324)
B.10.3 By-Laws of the Connecticut Steam
Company, as amended to June 26,
1998. (Exhibit B.10.4, 2002 NU Form
U5S, File No. 30-246)
B.11 Holyoke Water Power Company
B.11.1 Articles of Organization of Holyoke
Water Power Company, as amended.
(Exhibit 1.8, 1977 NU Form U5S, File
No. 30-246)
B.11.2 By-Laws of Holyoke Water Power
Company, as amended to February 11,
1998. (Exhibit B.14.2,1997 NU Form
U5S, File No. 1-5324)
B.12 Holyoke Power and Electric Company
B.12.1 Articles of Organization of Holyoke
Power and Electric Company dated
December 5, 1925. (Exhibit B.15,
1983 NU Form U5S, File No. 30-246)
B.12.2 Chapter 147 of the Massachusetts
Acts of 1926 amending the Charter of
Holyoke Power and Electric Company,
as recorded with the Office of the
Secretary of the Commonwealth on
March 29, 1926. (Exhibit B.15.1,
1983 NU Form U5S, File No. 30-246)
B.12.3 By-Laws of Holyoke Power and Electric
Company, as amended to February 11, 1998.
(Exhibit B.15.3, 1997 NU U5S, File No.
1-5324)
B.13 Northeast Utilities Service Company
B.13.1 Certificate of Incorporation of
Northeast Utilities Service Company,
as amended to February 20, 1974.
(Exhibit B.16, 1983 NU Form U5S,
File No. 30-246)
E-4
B.13.2 Certificate of Amendment to Certificate
of Incorporation of Northeast Utilities
Service Company, dated December 26, 1996.
(Exhibit B.16.2, 1996 NU Form U5S, File
No. 1-5324)
B.13.3 Certificate of Amendment to Certificate
of Incorporation of Northeast Utilities
Service Company, dated April 27, 1998.
(Exhibit B.16.3, 1997 NU Form U5S, File
No. 1-5324)
B.13.4 By-Laws of Northeast Utilities Service
Company as amended to January 1, 1997.
(Exhibit B.16.3, 1996 NU Form U5S, File
No. 1-5324)
B.14 Northeast Nuclear Energy Company
B.14.1 Certificate of Incorporation of
Northeast Nuclear Energy Company as
amended to April 24, 1974. (Exhibit
B.17, 1983 NU Form U5S, File No.
30-246)
B.14.2 Certificate of Amendment to Certificate
of Incorporation of Northeast Nuclear
Energy Company, dated December 26, 1996.
(Exhibit B.17.2, 1996 NU Form U5S, File
No. 1-5324)
B.14.3 Certificate of Amendment to Certificate of
Incorporation of Northeast Nuclear Energy
Company, dated April 27, 1998. (Exhibit
B.17.3, 1997 NU Form U5S, File No. 1-5324)
B.14.4 By-Laws of Northeast Nuclear Energy
Company, as amended to June 1, 2000.
(Exhibit B.14.5, 2000 NU Form U5S,
File No. 1-5324)
B.15 NU Enterprises, Inc.
B.15.1 Certificate of Incorporation of NU
Enterprises, Inc. dated December 28,
1998. (Exhibit B.15.1, 1999 NU Form
U5S, File No. 1-5324)
B.15.2 By-Laws of NU Enterprises, Inc., as
amended to June 1, 2000. (Exhibit
B.16.3, 2000 NU Form U5S, File No.
1-5324)
B.16 Select Energy Services, Inc.
B.16.1 Articles of Organization of HEC Inc.
dated June 19, 1990. (Exhibit B.19,
1990 NU Form U5S, File No. 30-246)
* B.16.2 Amendment to Articles of Organization
of HEC, Inc. dated May 25, 2001.
E-5
B. 16.3 By-Laws of HEC Inc., as amended,
June 30, 1999. (Exhibit B.16.2, 1999
NU Form U5S, File No. 1-5324)
B.17 Select Energy Contracting, Inc. F/K/A HEC
International Corporation
* B.17.1 Restated Articles of Organization
of Select Energy Contracting, Inc.
F/K/A HEC International Corporation
dated April 20, 2000.
B.17.2 By-Laws of Select Energy
Contracting, Inc. F/K/A HEC
International Corporation dated July
9, 1999. Exhibit B.17.3, 1999 NU
Form U5S, File No. 1-5324)
B.18 HEC/Tobyhanna Energy Project, Inc.
B.18.1 Articles of Organization of HEC/Tobyhanna
Energy Project, Inc. dated September 28,
1999. (Exhibit B.19.1, 1999 NU Form U5S,
File No. 1-5324)
B.18.2 By-Laws of HEC/Tobyhanna Energy
Project, Inc., dated September 28,
1999. (Exhibit B.19.2, 1999 NU Form
U5S, File No. 1-5324)
B.19 Reeds Ferry Supply Co., Inc.
B.19.1 Articles of Agreement of Reeds
Ferry Supply Co., Inc., dated June
25, 1964. (Exhibit B.20.1, 1999 NU
Form U5S, File No. 1-5324)
B.19.2 By-Laws of Reeds Ferry Supply Co.,
Inc., as Amended and Restated
August 4, 1999. (Exhibit B.20.2, 1999
NU Form U5S, File No. 1-5324)
B.20 North Atlantic Energy Service Corporation
B.20.1 Articles of Incorporation; and
Certificate of Amendment of North
Atlantic Energy Service Corporation
dated June 1, 1992. (Exhibit B.21,
1992 NU Form U5S, File No. 30-246)
B.20.2 By-Laws of North Atlantic Energy
Service Corporation, as amended to
June 1, 2000. (Exhibit B.21.3, 2000
NU Form U5S, File No. 1-5324)
B.21 Connecticut Yankee Atomic Power Company
B.21.1 Certificate of Incorporation of
Connecticut Yankee Atomic Power
Company and amendments dated to
November 20, 1964. (Exhibit B.20.1,
1993 NU Form U5S, File No. 1-5324)
E-6
B.21.2 Certificate of Amendment to Certificate
of Incorporation of Connecticut Yankee
Atomic Power Company, dated December 26,
1996. (Exhibit B.22.2, 1996 NU Form U5S,
File No. 1-5324)
B.21.3 Certificate of Amendment to
Certificate of Incorporation of
Connecticut Yankee Atomic Power
Company, dated October 15, 1998.
(Exhibit B.22.3, 1998 NU U5S, File
No. 1-5324)
B.21.4 By-Laws of Connecticut Yankee Atomic
Power Company, as amended to March
31, 1999. (Exhibit B.22.4, 1998 NU
U5S, File No. 1-5324)
B.22 Properties, Inc.
B.22.1 Articles of Agreement of Properties,
Inc. as amended to June 1, 1983.
(Exhibit B.21.1, 1993 NU Form U5S,
File No. 1-5324)
B.22.2 By-Laws of Properties, Inc., amended
and restated as of February 7, 1996.
(Exhibit B.23.2, 1995 NU Form U5S,
File No. 1-5324)
B.23 Charter Oak Energy, Inc.
B.23.1 Certificate of Incorporation of
Charter Oak Energy, Inc., dated
September 28, 1988. (Exhibit B.16,
1989 NU Form U5S, File No. 30-246)
B.23.2 Certificate of Amendment to
Certificate of Incorporation of
Charter Oak Energy, Inc., dated
December 26, 1996. (Exhibit B.25.2,
1996 NU Form U5S, File No. 1-5324)
B.23.3 Certificate of Amendment to
Certificate of Incorporation of
Charter Oak Energy Inc., dated
April 27, 1998. (Exhibit B.25.3,
1997 NU Form U5S, File No. 1-5324)
B.23.4 By-Laws of Charter Oak Energy,
Inc., as amended to June 1, 2000.
(Exhibit B.24.5, 2000 NU Form U5S,
File No. 1-5324)
B.24 New England Hydro-Transmission Corporation
B.24.1 Articles of Incorporation, (Exhibit
B.8a, 1986 New England Electric
System U5S, File No. 30-33)
B.24.2 Articles of Amendment of New England
Hydro-Transmission Corporation dated
January 18, 1989, (Exhibit B.10a,
1988 New England Electric System U5S,
File No. 1-3346).
E-7
B.24.3 By-Laws of New England Hydro-Transmission
Corporation dated March 17, 1998. (Exhibit
B. 16.b, 1998 New England Electric System
U5S, File No. 1-3346)
B.25 New England Hydro-Transmission Electric Company
B.25.1 Restated Articles of Organization of
New England Hydro-Transmission
Electric Company dated January 13,
1989. (Exhibit B.11a, 1988 New
England Electric System U5S, File
No. 30-33)
B.25.2 By-Laws of New England
Hydro-Transmission Electric Company
dated March 17, 1998. (Exhibit
B.17.b, 1998 New England Electric
System U5S File No.
1-3346)
B.26 CL&P Capital, L.P.
B.26.1 Amended and Restated Limited
Partnership Agreement of CL&P
Issuing Partnership dated as of
January 23, 1995. (Exhibit A.1, to
CL&P 35-CERT, File No. 70-8451,
filed January 31, 1995)
B.27 ERI/HEC EFA-Med, LLC
B.27.1 Certificate of Formation of ERI/HEC
EFA-Med, LLC, dated September 15,
2000. (Exhibit B.31.1, 2000 NU Form
U5S, File No. 1-5324)
B.27.2 Operating Agreement of ERI/HEC
EFA-Med, LLC, dated September 22,
2000. (Exhibit B.31.2, 2000 NU Form
U5S, File No. 1-5324)
B.28 Mode 1 Communications, Inc.
B.28.1 Certificate of Incorporation of
Mode 1 Communications, Inc. dated
March 26, 1996. (Exhibit B.34.1,
1996 NU Form U5S, File No. 1-5324)
B.28.2 Certificates of Amendment to
Certificate of Incorporation of Mode
1 Communications, Inc., dated
December 26, 1996 and February 4,
1997. (Exhibit B.34.2, 1996 NU Form
U5S, File No. 1-5324)
B.28.3 Certificate of Amendment to Certificate
of Incorporation of Mode l Communications,
Inc., dated April 27, 1998. (Exhibit B.34.3,
1997 NU Form U5S, File No. 1-5324)
B.28.4 By-Laws of Mode 1 Communications, Inc.,
as amended to January 1, 1997. (Exhibit
B.34.4, 1996 NU Form U5S, File No. 1-5324)
E-8
B.29 Select Energy, Inc.
B.29.1 Certificate of Incorporation of Select
Energy, Inc. dated September 26, 1996.
(Exhibit B.40.1, 1996 NU Form U5S,
File No. 1-5324)
B.29.2 Certificates of Amendment to Certificate
of Incorporation of Select Energy, Inc.,
dated December 26, 1996 and April 25, 1997.
(Exhibit B.40.2, 1996 NU Form U5S, File
No. 1-5324)
B.29.3 Certificate of Amendment to Certificate
of Incorporation of Select Energy, Inc.,
dated April 27, 1998. (Exhibit B.40.3,
1997 NU Form U5S, File No. 1-5324)
B.29.4 By-Laws of Select Energy, Inc., as
amended to June 1, 2000. (Exhibit B.33.5,
2000 NU Form U5S, File No. 1-5324)
B.30 Northeast Generation Company
B.30.1 Certificate of Incorporation of
Northeast Generation Company, dated
December 28, 1998. (Exhibit B.34.1,
1999 NU Form U5S, File No. 1-5324)
B.30.2 By-Laws of Northeast Generation
Company, as amended to June 1, 2000.
(Exhibit B.34.3, 2000 NU Form U5S,
File No. 1-5324)
B.31 Northeast Generation Services Company
B.31.1 Certificate of Incorporation of
Northeast Generation Services
Company, dated December 28, 1998.
(Exhibit B.35.1, 1999 NU Form U5S,
File No. 1-5324)
B.31.2 By-Laws of Northeast Generation
Services Company, as amended to June
1, 2000. (Exhibit B.35.3, 2000 NU
Form U5S, File No. 1-5324)
B.32 CL&P Receivables Corporation
B.32.1 Certificate of Incorporation of CL&P
Receivables Corporation, dated
September 5, 1997. (Exhibit B.41.1,
1997 NU Form U5S, File No. 1-5324)
B.32.2 Bylaws of CL&P Receivables Corporation,
dated September 12, 1997. (Exhibit
B.41.2, 1997 NU Form U5S, File
No. 1-5324)
E-9
B.33 Yankee Energy System, Inc.
B.33.1 Certificate of Incorporation of
Yankee Energy System, Inc., F/K/A
NU Acquisition Corp., dated
February 15, 2000. (Exhibit B.38.1,
2000 NU Form U5S, File No. 1-5324)
B.33.2 Certificate of Merger of Yankee
Energy System, Inc. with and into
NU Acquisition Corp., dated as of
March 1, 2000 (Exhibit B.38.2,
2000 NU Form U5S, File No. 1-5324)
B.33.3 By-Laws of Yankee Energy System,
Inc., as amended to March 1,2000.
(Exhibit B.38.3, 2000 NU Form U5S,
File No. 1-5324)
B.34 NorConn Properties, Inc.
B.34.1 Certificate of Incorporation of
NorConn Properties, Inc., dated
May 10, 1988. (Exhibit B.39.1,
2000 NU Form U5S, File No. 1-5324)
B.34.2 By-Laws of NorConn Properties, Inc.,
as in effect on March, 1, 2000.
(Exhibit B.39.2, 2000 NU Form U5S,
File No. 1-5324)
B.35 R. M. Services, Inc.
B.35.1 Certificate of Incorporation of
R. M. Services, Inc. dated November
17, 1994. (Exhibit B.40.1, 2000 NU
Form U5S, File No. 1-5324)
B.35.2 Certificate of Amendment of
Certificate of Incorporation of R. M.
Services, Inc., dated June 28, 2001.
(Exhibit B.40.2, 2001 NU Form U5S,
File No. 30-246).
B.35.3 By-Laws of R. M. Services, Inc., as
in effect on March 1, 2000. (Exhibit
B.40.2, 2000 NU Form U5S, File No.
1-5324)
B.36 Yankee Energy Financial Services Company
B.36.1 Certificate of Incorporation of Yankee
Energy Financial Services Company,
dated September 1, 1992. (Exhibit
B.41.1, 2000 NU Form U5S, File No.
1-5324)
B.36.2 By-Laws of Yankee Energy Financial
Services Company, as in effect on
March 1, 2000. (Exhibit B.41.2,
2000 NU Form U5S, File No. 1-5324)
E-10
B.37 Yankee Energy Services Company
B.37.1 Certificate of Incorporation of
Yankee Energy Services Company,
dated June 30, 1993. (Exhibit
B.42.1, 2000 NU Form U5S, File No.
1-5324)
B.37.2 Certificate of Amendment to
Certificate of Incorporation of
Yankee Energy Services Company,
dated January 20, 1995. (Exhibit
B.42.2, 2000 NU Form U5S, File
No. 1-5324)
B.37.3 By-Laws of Yankee Energy Services
Company, as in effect on March 1,
2000. (Exhibit B.42.3, 2000 NU Form
U5S, File No. 1-5324)
B.38 Yankee Gas Services Company
B.38.1 Certificate of Incorporation of
Yankee Gas Services Company, F/K/A
Mohawk Gas Company, (Special Act No.
218, January 1955 session, approved
May 26, 1955). (Exhibit B.43.1, 2000
NU Form U5S, File No. 1-5324)
B.38.2 Certificate of Amendment to the
Certificate of Incorporation of
Yankee Gas Services Company, dated
May 26, 1989. (Exhibit B.43.2, 2000
NU Form U5S, File No. 1-5324)
B.38.3 Certificate of Amendment to the
Certificate of Incorporation of
Yankee Gas Services Company, dated
June 27, 1989. (Exhibit B.43.3, 2000
NU Form U5S, File No. 1-5324)
B.38.4 By-Laws of Yankee Gas Services
Company, as in effect on March 1,
2000. (Exhibit B.43.4, 2000 NU Form
U5S, File No. 1-5324)
B.39 Housatonic Corporation
B.39.1 Certificate of Incorporation of
Housatonic Corporation, dated
October 16, 1987. (Exhibit B.44.1,
2000 NU Form U5S, File No. 1-5324)
B.39.2 Certificate of Amendment to the
Certificate of Incorporation of
Housatonic Corporation, dated
January 10, 1989. (Exhibit B.44.2,
2000 NU Form U5S, File No. 1-5324)
B.39.3 By-Laws of Housatonic Corporation,
as in effect on March 1, 2000.
(Exhibit B.44.3, 2000 NU Form U5S,
File No. 1-5324)
E-11
B.40 E. S. Boulos Company
B.40.1 Certificate of Incorporation of
E. S. Boulos Company, F/K/A NGS
Acquisition Sub, Inc., dated January
10, 2001. (Exhibit B.46.1, 2001 NU
Form U5S, File No. 30-246)
B.40.2 Certificate of Amendment of
Incorporation of E. S. Boulos
Company dated January 22, 2001.
(Exhibit B.46.2, 2001 NU Form U5S,
File No. 30-246)
B.40.3 By-Laws of E. S. Boulos Company,
as amended to January 22, 2001.
(Exhibit B.46.3, 2001 NU Form U5S,
File No. 30-246)
B.41 NGS Mechanical, Inc.
B.41.1 Certificate of Incorporation of
NGS Mechanical, Inc., dated January
24, 2001. (Exhibit B.47.1, 2001 NU
Form U5S, File No. 30-246)
B.41.2 By-Laws of NGS Mechanical, Inc.
dated as of January 25, 2001.
(Exhibit B.47.2, 2001 NU Form U5S,
File No. 30-246)
B.42 Select Energy New York, Inc.
B.42.1 Certificate of Incorporation of
Select Energy New York, Inc., F/K/A
Plum Street Energy Marketing, Inc.
and Niagara Mohawk Energy Marketing,
Inc., dated February 13, 1996.
(Exhibit B.48.1, 2001 NU Form U5S,
File No. 30-246)
B.42.2 Certificate of Amendment of
Incorporation of Select Energy New
York, Inc., dated August 21, 1998.
(Exhibit B.48.2, 2001 NU Form U5S,
File No. 30-246)
B.42.3 Certificate of Amendment of
Incorporation of Select Energy New
York, Inc., dated November 21, 2001.
(Exhibit B.48.3, 2001 NU Form U5S,
File No. 30-246)
B.42.4 By-Laws of Select Energy New York,
Inc., as in effect on November 30,
2001. (Exhibit B.48.4, 2001 NU Form
U5S, File No. 30-246)
B.43 CL&P Funding LLC
B.43.1 Certificate of Formation of CL&P
Funding LLC dated January 3, 2001.
(Exhibit 3.1, CL&P Funding LLC Form
S-3, dated January 18, 2001, File
No. 333-53866)
E-12
B.43.2 Limited Liability Company Agreement
of CL&P Funding LLC made and
effective as of January 3, 2001 and
amended and restated as of March 30,
2001. (Exhibit 3.2, CL&P Funding LLC
Form S-3, Amendment No. 2, dated
March 26, 2001, File No. 333-53866)
B.44 PSNH Funding LLC
B.44.1 Certificate of Formation of PSNH
Funding LLC dated January 24, 2001.
(Exhibit 3.1, PSNH Funding LLC Form
S-3 (Amendment No. 2), dated April
18, 2001, File No. 333-55830)
B.44.2 Limited Liability Company Agreement
of PSNH Funding LLC made and
effective as of January 24, 2001 and
as amended and restated as of April
25, 2001. (Exhibit 3.2, PSNH Funding
LLC Form 8-K, dated April 25, 2001,
File No. 333-55830)
B.45 PSNH Funding LLC 2
B.45.1 Certificate of Formation of PSNH
Funding LLC 2 dated December 10,
2001. (Exhibit 3.1, PSNH Funding LLC
2 Form S-3, dated December 28, 2001,
File No. 333-76040)
B.45.2 Limited Liability Company Agreement
of PSNH Funding LLC 2 dated as of
December 10, 2001. (Exhibit 3.2,
PSNH Funding LLC 2 Form S-3
(Amendment No. 2), dated January 14,
2002, File No. 333-76040)
B.46 WMECO Funding LLC
B.46.1 Certificate of Formation of WMECO
Funding LLC dated March 28, 2001.
(Exhibit 3.1, WMECO Funding LLC Form
S-3, dated April 18, 2001, File No.
333-59118)
B.46.2 Limited Liability Company Agreement
of WMECO Funding LLC made and
effective as of March 28, 2001 and
as amended and restated as of May
17, 2001. (Exhibit 3.2, WMECO
Funding LLC Form S-3, Amendment No.
2, dated May 7, 2001, File No.
333-59118)
B.47 Woods Electrical Co., Inc.
B.47.1 Certificate of Incorporation of
Woods Electrical Co., Inc., F/K/A
NGS Acquisition, Inc., dated July
18, 2002. (Exhibit B.47.1, 2002 NU
Form U5S, File No. 30-246)
B.47.2 Certificate of Amendment of
Incorporation of Woods Electrical
Co., Inc., dated August 1, 2002.
(Exhibit B.47.2, 2002 NU Form U5S,
File No. 30-246)
E-13
B.47.3 By-Laws of Woods Electrical Co.,
Inc., as amended to August 9, 2002.
(Exhibit B.47.3, 2002 NU Form U5S,
File No. 30-246)
B.48 Woods Network Services, Inc.
B.48.1 Certificate of Incorporation of
Woods Network Services, Inc., F/K/A
NGS Telecommunications, Inc. dated
July 18, 2002. (Exhibit B.48.1, 2002
NU Form U5S, File No. 30-246)
B.48.2 Certificate of Amendment of
Incorporation of Woods Network
Services, Inc., dated August 1,
2002. (Exhibit B.48.2, 2002 NU Form
U5S, File No. 30-246)
B.48.3 By-Laws of Woods Network Services,
Inc., as amended to August 9, 2002.
(Exhibit B.48.3, 2002 NU Form U5S,
File No. 30-246)
B.49 Greenport Power, LLC
* B.49.1 Articles of Organization of
Greenport Power, LLC, dated December
17, 2002.
* B.49.2 Operating Agreement of Greenport
Power, LLC dated February 10, 2003.
B.50 HEC/CJTS Energy Center LLC
* B.50.1 Certificate of Formation of HEC/CJTS
Energy Center LLC dated March 2,
2001.
* B.50.2 Limited Liability Company Agreement
of HEC/CJTS Energy Center LLC,
effective as of 3/2/2001.
B.51 Maine Yankee Atomic Power Company
B.51.1 Certificate of Organization of Maine
Yankee Atomic Power Company, as
amended through September 18, 1992.
(Exhibit 15a to National Grid
Transco PLC U5S filed July 29, 2003,
File No. 030-00354)
B.51.2 By-Laws of Maine Yankee Atomic Power
Company, as amended through November
25, 1996. (Exhibit 15b to National
Grid Transco PLC U5S filed July 29,
2003, File No. 030-00354)
E-14
B.52 Yankee Atomic Electric Company
B.52.1 Articles of Organization of Yankee
Atomic Electric Company, as amended
through May 30, 2001. (Exhibit 17a
to National Grid Transco PLC U5S
filed July 29, 2003, File No.
030-00354)
B.52.2 By-Laws of Yankee Atomic Electric
Company as, amended through December
9, 1988. (Exhibit 17b to National
Grid Transco PLC U5S filed July 29,
2003, File No. 030-00354)
C.(a) INSTRUMENTS DEFINING THE RIGHTS OF SECURITY HOLDERS, INCLUDING
INDENTURES
C.1 Northeast Utilities
C.1.1 Indenture dated as of December 1,
1991, between Northeast Utilities
and IBJ Schroder Bank & Trust
Company, with respect to the
issuance of Debt Securities.
(Exhibit 4.1.1, 1991 NU Form 10-K,
File No. 1-5324)
C.1.2 First Supplemental Indenture, dated
as of December 1, 1991, between
Northeast Utilities and IBJ Schroder
Bank & Trust Company, with respect
to the issuance of Series A Notes.
(Exhibit 4.1.2, 1991 NU Form 10-K,
File No. 1-5324)
C.1.3 Second Supplemental Indenture, dated
as of March 1, 1992, between
Northeast Utilities and IBJ Schroder
Bank & Trust Company, with respect
to the issuance of 8.38% Amortizing
Notes. (Exhibit 4.1.3, 1992 NU Form
10-K, File No. 1-5324)
C.1.4 Indenture between NU and The Bank of
New York, as Trustee, dated as of
April 1, 2002 (Exhibit A-3 to 35
CERT filed April 9, 2002, File No.
70-9755)
C.1.6 First Supplemental Indenture between
NU and The Bank of New York, as
Trustee, dated as of April 1, 2002
relating to the $263M of Senior
Notes, Series A, due 2012. (Exhibit
A-4 to 35 CERT filed April 9, 2002,
File No. 70-9535)
C.1.7 Second Supplemental Indenture dated
as of June 1, 2003, between NU and
the Bank of New York as Trustee,
relating to $150M of Senior Notes,
Series B, due 2008. (Exhibit A-1.3
to NU 35-CERT filed June 6, 2003,
File No. 70-10051)
C.1.8 Credit Agreement among Northeast
Utilities, the Banks Named Therein,
Union Bank of California, N.A.
E-15
as Administrative Agent and Bank One,
N.A., as Fronting Bank, dated as of
November 10, 2003. (Exhibit B-5 to NU
35-CERT filed November 17, 2003, File
No. 70-9755)
C.1.9 Rights Agreement dated as of February
23, 1999, between Northeast
Utilities and Northeast Utilities
Service Company, as Rights Agent.
(Exhibit 1 to NU's Registration
Statement on Form 8-A, filed on
April 12, 1999, File No. 001-05324).
C.1.9.1 Amendment to Rights Agreement.
(Exhibit 3 to NU Form 8-K dated
October 13, 1999, File No. 1-5324).
C.1.9.2 Second Amendment to Rights Agreement.
(Exhibit B-3 to NU 35-CERT, dated
February 1, 2002, File No.
070-09463).
C.2 The Connecticut Light and Power Company
C.2.1 Indenture of Mortgage and Deed of
Trust between CL&P and Bankers Trust
Company, Trustee, dated as of May 1,
1921. (Composite including all
twenty-four amendments to May 1,
1967.) (Exhibit 4.1.1, 1989 NU Form
10-K, File No. 1-5324)
C.2.2 Supplemental Indenture to the
Composite May 1, 1921 Indenture of
Mortgage and Deed of Trust between
CL&P and Bankers Trust Company,
dated as of June 1, 1994. (Exhibit
4.2.15, 1994 NU Form 10-K, File No.
1-5324)
C.2.3 Supplemental Indenture to the
Composite May 1, 1921 Indenture of
Mortgage and Deed of Trust between
CL&P and Bankers Trust Company,
dated as of October 1, 1994.
(Exhibit 4.2.16, 1994 NU Form
10-K, File No. 1-5324)
C.2.4 Financing Agreement between
Industrial Development Authority of
the State of New Hampshire and CL&P
(Pollution Control Bonds, 1986
Series) dated as of December 1,
1986. (Exhibit C.1.47, 1986 NU Form
U5S, File No. 30-246)
C.2.5 Financing Agreement between
Industrial Development Authority of
the State of New Hampshire and CL&P
(Pollution Control Bonds, 1988
Series) dated as of October 1, 1988.
(Exhibit C.1.55, 1988 NU Form U5S,
File No. 30-246)
E-16
C.2.6 Loan and Trust Agreement among
Business Finance Authority of the
State of New Hampshire and CL&P
(Pollution Control Bonds, 1992
Series A) dated as of December 1,
1992. (Exhibit C.2.33, 1992 NU Form
U5S, File No. 30-246)
C.2.7 Loan Agreement between Connecticut
Development Authority and CL&P
(Pollution Control Bonds - Series A,
Tax Exempt Refunding) dated as of
September 1, 1993. (Exhibit 4.2.21,
1993 NU Form 10-K, File No. 1-5324)
C.2.8 Loan Agreement between Connecticut
Development Authority and CL&P
(Pollution Control Bonds - Series B,
Tax Exempt Refunding) dated as of
September 1, 1993. (Exhibit 4.2.22,
1993 NU Form 10-K, File No. 1-5324)
C.2.9 Amended and Restated Loan Agreement
between Connecticut Development
Authority and CL&P (Pollution
Control Revenue Bond - 1996A Series)
dated as of May 1, 1996 and Amended
and Restated as of January 1, 1997.
(Exhibit 4.2.24, 1996 NU Form 10-K,
File No. 1-5324)
C.2.9.1 Amended and Restated Indenture of
Trust between Connecticut
Development Authority and the
Trustee (CL&P Pollution Control
Revenue Bond-1996A Series), dated as
of May 1, 1996, and Amended and
Restated as of January 1, 1997.
(Exhibit 4.2.24.1, 1996 NU Form
10-K, File No. 1-5324)
C.2.9.2 Standby Bond Purchase Agreement
among CL&P, Bank of New York as
Purchasing Agent and the Banks named
therein, dated October 24, 2000.
(Exhibit 4.2.24.2, 2000 NU Form
10-K, File No. 1-5324)
C.2.9.3 AMBAC Municipal Bond Insurance
Policy issued by the Connecticut
Development Authority (CL&P
Pollution Control Revenue Bond-1996A
Series), effective January 23, 1997.
(Exhibit 4.2.24.3, 1996 NU Form
10-K, File No. 1-5324)
C.2.9.4 Amendment No. 2 to the Standby Bond
Purchase Agreement dated as of
September 9, 2002, among CL&P, The
Bank of New York, and the
Participating Banks referred to
therein. (Exhibit 4.2.7.4, 2002 NU
Form 10-Q for the Quarter Ended
September 30, 2002, File No. 1-5324)
E-17
C.2.9.5 Compensation and Multiannual Mode
Agreement among the Connecticut
Development Authority and BNY
Capital Markets, Inc. dated
September 23, 2003 (Exhibit 4.2.7.5,
2003 NU Form 10-Q for the Quarter
Ended September 30, 2003, File No.
1-5324)
C.2.10 Amended and Restated Receivables
Purchase and Sale Agreement dated as
of March 30, 2001 (CL&P and CL&P
Receivables Corporation (CRC))
(Exhibit 10.1, 2001 NU 10-Q for the
Quarter Ended September 30, 2001
(File No. 1-5324))
C.2.10.1 Amendment No. 2 to the Amended and
Restated Receivables Purchase and
Sale Agreement, dated as of July 10,
2002 (CL&P and CL&P Receivables
Corporation (CRC)). (Exhibit
4.2.8.1, 2002 NU Form 10-K, File No.
1-5324)
C.2.10.2 Amendment No. 3 to the Amended and
Restated Receivables Purchase and
Sale Agreement, dated as of July 9,
2003 (Exhibit 4.2.8.2, 2003 NU Form
10-Q for the Quarter Ended September
30, 2003, File No. 1-5324)
C.2.11 Purchase and Contribution Agreement
(CL&P and CRC), dated as of
September 30, 1997 (Exhibit 10.49.1,
1997 NU Form 10-K, File No. 1-5324)
C.2.11.1 Amendment No. 2 to the Purchase and
Contribution Agreement between CL&P
and CRC dated as of March 30, 2001.
(Exhibit 4.2.9.1, 2002 NU Form 10-K,
File No. 1-5324)
C.2.12 Credit Agreement among WMECO, CL&P,
PSNH, Yankee Gas, the Banks Named
Therein and Citibank, N.A. as
Administrative Agent, dated as of
November 10, 2003. (Exhibit B-6 to
NU 35-CERT filed November 17, 2003,
File No. 70-9755).
C.3 Public Service Company of New Hampshire
C.3.1 First Mortgage Indenture dated as of
August 15, 1978, between PSNH and
First Fidelity Bank, National
Association, New Jersey, Trustee.
(Composite including all amendments
to May 16, 1991)(Exhibit 4.4.1, 1992
NU Form 10-K, File No. 1-5324)
E-18
C.3.1.1 Tenth Supplemental Indenture dated as
of May 1, 1991 between PSNH and
First Fidelity Bank, National
Association. (Exhibit 4.1, PSNH
Current Report on Form 8-K dated
February 10, 1992, File No. 1-6392)
C.3.1.2 Twelfth Supplemental Indenture
dated as of December 1, 2001 between
PSNH and First Union National Bank
(Exhibit 4.3.1.2, 2001 NU Form 10-K,
File No. 1- 5324)
C.3.2 Series D (Taxable New Issue) Amended
and Restated PCRB Loan and Trust
Agreement dated as of April 1, 1999.
(Exhibit 4.3.6, 1999 NU Form 10-K,
File No. 1-5324)
C.3.3 Series E (Taxable New Issue) Amended
and Restated PCRB Loan and Trust
Agreement dated as of April 1, 1999.
(Exhibit 4.3.7, 1999 NU Form 10-K,
File No. 1-5324)
C.3.4 Series A Loan and Trust Agreement
among Business Finance Authority of
the State of New Hampshire and PSNH
and State Street Bank and Trust
Company, as Trustee (Tax Exempt
Pollution Control Bonds) dated as of
October 1, 2001. (Exhibit 4.3.4,
2001 NU Form 10-K, File No. 1-5324)
C.3.5 Series B Loan and Trust Agreement
among Business Finance Authority of
the State of New Hampshire and PSNH
and State Street Bank and Trust
Company, as Trustee (Tax Exempt
Pollution Control Bonds) dated as of
October 1, 2001. (Exhibit 4.3.5,
2001 NU Form 10-K, File No. 1-5324)
C.3.6 Series C Loan and Trust Agreement
among Business Finance Authority of
the State of New Hampshire and PSNH
and State Street Bank and Trust
Company, as Trustee (Tax Exempt
Pollution Control Bonds) dated as of
October 1, 2001. (Exhibit 4.3.6,
2001 NU Form 10-K, File No. 1-5324)
C.3.7 Credit Agreement among WMECO, CL&P,
PSNH, Yankee Gas, the Banks Named
Therein and Citibank, N.A. as
Administrative Agent, dated as of
November 10, 2003. (Exhibit B-6 to
NU 35-CERT filed November 17, 2003,
File No. 70-9755)
E-19
C.4 Western Massachusetts Electric Company
C.4.1 Loan Agreement between Connecticut
development Authority and WMECO
Pollution Control Bonds - Series A,
Tax Exempt Refunding) dated as of
September 1, 1993. (Exhibit 4.4.13,
1993 NU Form 10-K, File No. 1-5324)
C.4.2 Indenture Agreement between WMECO
and the Bank of New York, as
Trustee, dated as of September 1,
2003 (Exhibit 99.2, WMECO Form 8-K
filed October 8, 2003, File No.
0-7624)
C.4.2.1 First Supplemental Indenture
Agreement between WMECO and the Bank
of New York, as Trustee, dated as
of September 1, 2003 (Exhibit 99.3,
WMECO Form 8-K filed October 8, 2003,
File No. 0-7624)
C.4.3 Credit Agreement among WMECO, CL&P,
PSNH, Yankee Gas, the Banks Named
Therein and Citibank, N.A. as
Administrative Agent, dated as of
November 10, 2003. (Exhibit B-6 to
NU 35-CERT filed November 17, 2003,
File No. 0-9755)
C.5 Northeast Generation Company
C.5.1 Indenture Mortgage, dated as of
October 18, 2001 between NGC and The
Bank of New York, as trustee
(Exhibit 4.1 to NGC Registration
Statement on Form S-4 dated December
6, 2001, File No. 333-74636)
C.5.1.1 First Supplemental Indenture
Mortgage, dated as of October 18,
2001 between NGC and The Bank of
New York, as trustee (Exhibit
4.2 to NGC Registration Statement
S-4 dated December 6, 2001, File
No. 333-74636)
C.6 The Rocky River Realty Company
C.6.1 Note Agreement dated April 14, 1992,
by and between The Rocky River
Realty Company (RRR) and Purchasers
named therein (Connecticut General
Life Insurance Company, Life
Insurance Company of North America,
INA Life Insurance Company of New
York, Life Insurance Company of
Georgia), with respect to RRR's sale
of $15 million of guaranteed senior
secured notes due 2007 and $28
million of guaranteed senior secured
notes due 2017. (Exhibit 10.52, 1992
NU Form 10-K, File No. 1-5324)
E-20
C.6.2 Amendment to Note Agreement, dated
September 26, 1997. (Exhibit 10.3.1,
1997 NU Form 10-K, File No. 1-5324)
C.6.3 Note Guaranty dated April 14, 1992
by Northeast Utilities pursuant to
Note Agreement dated April 14, 1992,
between RRR and Note Purchasers, for
the benefit of The Connecticut
National Bank as Trustee, the
Purchasers and the owners of the
notes. (Exhibit 10.52.1, 1992 NU
Form 10-K, File No. 1-5324)
C.6.4 Extension of Note Guaranty, dated
September 26, 1997. (Exhibit
10.31.2.1, 1997 NU Form 10-K, File
No. 1-5324)
C.6.5 Assignment of Leases, Rents and
Profits, Security Agreement and
Negative Pledge, dated as of April
14, 1992, among RRR, NUSCO and The
Connecticut National Bank as
Trustee, securing notes sold by RRR
pursuant to April 14, 1992, Note
Agreement. (Exhibit 10.52.2, 1992 NU
Form 10-K, File No. 1-5324)
C.6.6 Modification of and Confirmation of
Assignment of Leases, Rents and
Profits, Security Agreement and
Negative Pledge, dated as of
September 26, 1997. (Exhibit
10.31.3.1, 1997 NU Form 10-K, File
No. 1-5324)
C.6.7 Purchase and Sale Agreement, dated
July 28, 1997, by and between RRR
and the Sellers and Purchasers named
therein. (Exhibit 10.31.4, 1997 NU
Form 10-K, File No. 1-5324)
C.6.8 Purchase and Sale Agreement, dated
September 26, 1997, by and between
RRR and the Purchaser named therein.
(Exhibit 10.31.5, 1997 NU Form 10-K,
File No. 1-5324)
C.7 CL&P Receivables Corporation
C.7.1 Amended and Restated Receivables
Purchase and Sale Agreement dated as
of March 30, 2001 (CL&P and CL&P
Receivables Corporation (CRC))
(Exhibit 10.1, 2001 NU 10-Q for the
Quarter Ended September 30, 2001
(File No.
1-5324)
C.7.1.1 Amendment No. 2 to the Amended and
Restated Receivables Purchase and Sale
Agreement, dated as of July 10,
2002 (CL&P and CL&P Receivables
Corporation (CRC)). (Exhibit
4.2.8.1, 2002 NU Form 10-K, File
No. 1-5324)
E-21
C.7.1.2 Amendment No. 3 to the Amended and
Restated Receivables Purchase and Sale
Agreement, dated as of July 9, 2003
(Exhibit 4.2.8.2, 2003 NU Form 10-Q
for the Quarter Ended September
30, 2003, File No. 1-5324)
C.7.2 Purchase and Contribution Agreement
(CL&P and CL&P Receivables
Corporation), dated as of September
30, 1997 (Exhibit 10.49.1, 1997 NU
Form 10-K, File No. 1-5324)
C.7.2.1 Amendment No. 2 to the Purchase and
Contribution Agreement between
CL&P and CRC dated as of March 30,
2001. (Exhibit 4.2.9.1, 2002 NU
Form 10-K, File No. 1-5324)
C.8 HEC/Tobyhanna Energy Project, Inc.
C.8.1 Trust Indenture & Security Agreement
Relating to an Energy Savings
Performance Contract Project dated
as of September 30, 1999 (Exhibit
C.11.1, 2000 NU Form U5S, File No.
1-5324)
C.9 Yankee Gas Services Company
C.9.1 Indenture of Mortgage and Deed of
Trust dated as of July 1, 1989
between Yankee Gas Services Company
(Yankee Gas) and The Connecticut
National Bank (Mortgage) (Exhibit
No. 4.2, Yankee Gas Form 10 dated
April 14, 1989, File No. 0-17605)
C.9.2 First Supplemental Indenture, dated
as of April 1, 1992, to Mortgage
(Exhibit No. 4.11, Yankee Energy
Form S-3 filed October 2, 1992, Reg.
No. 33-52750)
C.9.3 Second Supplemental Indenture, dated
as of December 1, 1992, to Mortgage
(Exhibit No. 10.2, 1992 Yankee
Energy System, Inc. (Yankee Energy)
Form 10-K, File No. 0-17605)
C.9.4 Third Supplemental Indenture, dated
as of June 1, 1995, to Mortgage
(Exhibit No. 4.14, 1995 Yankee
Energy Form 10-K, File No. 0-10721)
C.9.5 Fourth Supplemental Indenture, dated
as of April 1, 1997, to Mortgage
(Exhibit No. 15, 1997 Yankee Energy
Form 10-K, File No. 0-10721)
C.9.6 Fifth Supplemental Indenture, dated
as of January 1, 1999, to Mortgage
(Exhibit C.13.6, 2000 NU Form U5S,
File No. 1-5324)
E-22
C.9.7 Bond Purchase Agreement dated as of July
1, 1989, relating to $119 million
aggregate principal amount of First
Mortgage Bonds, Series A (Exhibit 4.3,
Yankee Gas Form 10 dated April 14, 1989,
File No. 0-17605)
C.9.7.1 First Amendment, dated as of April 10,
1990, to Bond Purchase Agreement
(Exhibit C.13.7.1, 2000 NU Form U5S,
File No. 1-5324)
C.9.8 Bond Purchase Agreement, dated as of
April 1, 1992, relating to $20
million aggregate principal amount
of First Mortgage Bonds, Series B
(Exhibit No. 4.12, Yankee Energy
Form S-3 filed October 2, 1992, Reg.
No. 33-52750)
C.9.9 Bond Purchase Agreement, dated as of
December 1, 1992, relating to $20
million aggregate principal amount
of First Mortgage Bonds, Series C
(Exhibit No. 10.4, 1992 Yankee
Energy Form 10-K, File No. 0-17605)
C.9.10 Bond Purchase Agreement, dated as of
April 1, 1997, relating to $30
million aggregate principal amount
of First Mortgage Bonds, Series E
(Exhibit No. 4.16, 1997 Yankee
Energy Form 10-K, File No. 0-10721)
C.9.11 Bond Purchase Agreement, dated as of
January 1, 1999, relating to $50
million aggregate principal amount
of First Mortgage Bonds (Exhibit No.
C.13.11, NU Form U5S, File No.
1-5324)
C.9.12 Credit Agreement among WMECO, CL&P,
PSNH, Yankee Gas, the Banks Named
Therein and Citibank, N.A. as
Administrative Agent, dated as of
November 10, 2003. (Exhibit B-6 to
NU 35-CERT filed November 17, 2003,
File No. 70-9755).
C.10 NorConn Properties, Inc.
C.10.1 Term Loan Agreement between NorConn
Properties, Inc. and Fleet National
Bank of Connecticut dated as of
February 1, 1996. (Exhibit C.13.1,
2001 NU Form U5S, File No. 30-246)
C.(b) AGREEMENTS RELATING TO ACQUISITION OF SECURITIES AND UTILITY ASSETS
E-23
D. Tax Allocation Agreement
D.1 Amended and Restated Tax Allocation Agreement, dated as of
January 1, 1990. (Exhibit D, 1994 NU Form U5S, File No.
30-246)
D.2 First Amendment, dated as of October 26, 1998, to the Amended
and Restated Tax Allocation Agreement dated as of January 1,
1990. (Exhibit D, Amendment No. 2 to 1997 NU Form U5S, File
No. 30-246)
D.3 Second Amendment, dated as of March 1, 2000, to the Amended
and Restated Tax Allocation Agreement dated as of January 1,
1990 (Exhibit D.3, 2000 NU Form U5S, File No. 30-246)
G. Organizational Chart - EWG
Northeast Utilities (Parent Company)
- NU Enterprises, Inc. (100% owned by NU)
- Northeast Generation Company (EWG, 100% owned by NU
Enterprises, Inc.)
H. EWG Financial Statements
E-24
THIS PAGE INTENTIONALLY LEFT BLANK
E-25
ITEM 10. EXHIBIT H
NORTHEAST GENERATION COMPANY
BALANCE SHEETS
--------------------------------------------------------------------------------------------------------------------
At December 31, 2003 2002
--------------------------------------------------------------------------------------------------------------------
(Thousands of Dollars)
ASSETS
------
Current Assets:
Cash and cash equivalents $ 12,863 $ 18,248
Accounts receivable - 1,441
Accounts receivable from affiliated companies 12,988 12,124
Taxes receivable - 1,587
Notes receivable from affiliated companies 10,000 10,000
Materials and supplies, at average cost 2,311 2,164
Prepayments and other 749 780
-------------- --------------
38,911 46,344
-------------- --------------
Property, Plant and Equipment:
Competitive energy 821,230 799,585
Less: Accumulated depreciation 29,290 19,379
-------------- --------------
791,940 780,206
Construction work in progress 11,620 21,085
-------------- --------------
803,560 801,291
-------------- --------------
Deferred Debits and Other Assets:
Special deposits 30,204 29,627
Other 8,735 10,149
-------------- --------------
38,939 39,776
-------------- --------------
Total Assets $ 881,410 $ 887,411
============== ==============
The accompanying notes are an integral part of these financial statements.
E-26
ITEM 10. EXHIBIT H
NORTHEAST GENERATION COMPANY
BALANCE SHEETS
-------------------------------------------------------------------------------------------------------------------
At December 31, 2003 2002
-------------------------------------------------------------------------------------------------------------------
(Thousands of Dollars)
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Long-term debt - current portion $ 31,500 $ 27,000
Accounts payable 2,266 1,559
Accounts payable to affiliated companies 1,274 1,719
Accrued taxes 446 893
Accrued interest 6,783 7,070
Other 329 484
----------------- --------------
42,598 38,725
----------------- --------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes 42,863 21,005
----------------- --------------
Capitalization:
Long-Term Debt 357,500 389,000
----------------- --------------
Common Stockholder's Equity:
Common stock, $1 par value - authorized
20,000 shares; 6 shares outstanding
in 2003 and 2002 - -
Capital surplus, paid in 408,095 408,098
Retained earnings 31,766 32,259
Accumulated other comprehensive loss (1,412) (1,676)
----------------- --------------
Common Stockholder's Equity 438,449 438,681
----------------- --------------
Total Capitalization 795,949 827,681
----------------- --------------
Commitments and Contingencies (Note 3)
Total Liabilities and Capitalization $ 881,410 $ 887,411
================= ==============
The accompanying notes are an integral part of these financial statements.
E-27
ITEM 10. EXHIBIT H
NORTHEAST GENERATION COMPANY
STATEMENTS OF INCOME
-------------------------------------------------------------------------------------------------------------------
For the Years Ended December 31, 2003 2002
-------------------------------------------------------------------------------------------------------------------
(Thousands of Dollars)
Operating Revenues $ 143,814 $ 131,897
----------------- --------------
Operating Expenses:
Operation -
Operation and maintenance 25,995 25,126
Depreciation and amortization 9,784 14,091
Taxes other than income taxes 9,391 9,825
----------------- --------------
Total operating expenses 45,170 49,042
----------------- --------------
Operating Income 98,644 82,855
Interest Expense:
Interest on long-term debt 33,187 33,203
Other interest 108 13
----------------- --------------
Interest expense, net 33,295 33,216
----------------- --------------
Other Income, Net 478 774
----------------- --------------
Income Before Income Tax Expense 65,827 50,413
Income Tax Expense 27,320 20,007
----------------- --------------
Net Income $ 38,507 $ 30,406
================= ==============
STATEMENTS OF COMPREHENSIVE INCOME
Net Income $ 38,507 $ 30,406
----------------- --------------
Other comprehensive income, net of tax:
Qualified cash flow hedging instruments 264 265
----------------- --------------
Comprehensive Income $ 38,771 $ 30,671
================= ==============
The accompanying notes are an integral part of these financial statements.
E-28
ITEM 10. EXHIBIT H
NORTHEAST GENERATION COMPANY
STATEMENTS OF STOCKHOLDER'S EQUITY
------------------------------------------------------------------------------------------------------------------------------------
Accumulated
Common Stock Capital Other
----------------------- Surplus, Retained Comprehensive
Shares Amount Paid In Earnings (Loss)/Income Total
------------------------------------------------------------------------------------------------------------------------------------
(Thousands of Dollars, except share information)
Balance at January 1, 2002 6 $ - $ 408,099 $ 11,853 $ (1,941) $ 418,011
Net income for 2002 30,406 30,406
Cash dividends on common stock (10,000) (10,000)
Allocation of benefits - ESOP (1) (1)
Other comprehensive income 265 265
---------- ----------- ----------- ------------ ------------- --------------
Balance at December 31, 2002 6 - 408,098 32,259 (1,676) 438,681
Net income for 2003 38,507 38,507
Cash dividends on common stock (39,000) (39,000)
Allocation of benefits - ESOP (3) (3)
Other comprehensive income 264 264
---------- ----------- ----------- ------------ ------------- --------------
Balance at December 31, 2003 6 $ - $ 408,095 $ 31,766 $ (1,412) $ 438,449
========== =========== =========== ============ ============= ==============
The accompanying notes are an integral part of these financial statements.
E-29
ITEM 10. EXHIBIT H.
NORTHEAST GENERATION COMPANY
STATEMENTS OF CASH FLOWS
---------------------------------------------------------------------------------------------------------------------------
For the Years Ended December 31, 2003 2002
---------------------------------------------------------------------------------------------------------------------------
(Thousands of Dollars)
Operating Activities:
Net income $ 38,507 $ 30,406
Adjustments to reconcile to net cash flows
provided by operating activities:
Depreciation and amortization 9,784 14,091
Deferred income taxes 21,681 19,031
Other sources of cash 1,591 1,974
Other uses of cash (923) (3,399)
Changes in current assets and liabilities:
Accounts receivable 577 (2,923)
Materials and supplies (147) (371)
Other current assets (excludes cash) 1,618 2,242
Accounts payable 262 222
Accrued taxes (447) 99
Other current liabilities (178) (348)
------------------ ----------------
Net cash flows provided by operating activities 72,325 61,024
------------------ ----------------
Investing Activities:
Investments in competitive energy plant (11,133) (14,266)
NU system Money Pool lending - (100)
Investment in special deposits (577) (506)
------------------ ----------------
Net cash flows used in investing activities (11,710) (14,872)
------------------ ----------------
Financing Activities:
Retirement of long-term debt (27,000) (24,000)
Cash dividends on common stock (39,000) (10,000)
------------------ ----------------
Net cash flows used in financing activities (66,000) (34,000)
------------------ ----------------
Net (decrease)/increase in cash and cash equivalents (5,385) 12,152
Cash and cash equivalents - beginning of year 18,248 6,096
------------------ ----------------
Cash and cash equivalents - end of year $ 12,863 $ 18,248
================== ================
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized of $1,058 in 2003 and $2,085 in 2002 $ 34,261 $ 36,145
================== ================
Income taxes $ 5,608 $ (1,435)
================== ================
The accompanying notes are an integral part of these financial statements.
E-30