Edgar Filing: UNITIL CORP

FORM U-13-60

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM U-13-60

ANNUAL REPORT

For the Year Ended December 31, 2004

UNITIL SERVICE CORP.

6 Liberty Lane West, Hampton, New Hampshire 03842-1720


Date of Incorporation:		October 9, 1984
State of Incorporation:		New Hampshire

Name, Title and address of officer to whom correspondence concerning this report should be addressed:

Laurence M. Brock, Vice President & Controller

6 Liberty Lane West

Hampton, New Hampshire 03842-1720

Name of Principal Holding Company:

UNITIL Corporation

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS


Description of Schedules and Accounts	Schedule or Account Number	Page Number
*COMPARATIVE BALANCE SHEET*	Schedule I	4-5
SERVICE COMPANY PROPERTY	Schedule II	6-7
ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION OF SERVICE COMPANY PROPERTY	Schedule III	8
INVESTMENTS	Schedule IV	9
ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES	Schedule V	10
FUEL STOCK EXPENSES UNDISTRIBUTED	Schedule VI	12
STORES EXPENSE UNDISTRIBUTED	Schedule VII	13
MISCELLANEOUS CURRENT AND ACCRUED ASSETS	Schedule VIII	14
MISCELLANEOUS DEFERRED DEBITS	Schedule IX	15
RESEARCH, DEVELOPMENT, OR DEMONSTRATION EXPENDITURES	Schedule X	16
PROPRIETARY CAPITAL	Schedule XI	17
LONG-TERM DEBT	Schedule XII	18
CURRENT AND ACCRUED LIABILITIES	Schedule XIII	19
NOTES TO FINANCIAL STATEMENTS	Schedule XIV	20

*COMPARATIVE INCOME STATEMENT*	Schedule XV	21
ANALYSIS OF BILLING - ASSOCIATE COMPANIES	Account 457	22
ANALYSIS OF BILLING - NONASSOCIATE COMPANIES	Account 458	23
ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE AND NONASSOCIATE COMPANIES	Schedule XVI	24
SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE FUNCTION	Schedule XVII	25
DEPARTMENTAL ANALYSIS OF SALARIES	Account 920	26
OUTSIDE SERVICES EMPLOYED	Account 923	27
EMPLOYEE PENSIONS AND BENEFITS	Account 926	28
GENERAL ADVERTISING EXPENSES	Account 930.1	29
MISCELLANEOUS GENERAL EXPENSES	Account 930.2	30
RENTS	Account 931	31
TAXES OTHER THAN INCOME TAXES	Account 408	32
DONATIONS	Account 426.1	33
OTHER DEDUCTIONS	Account 426.5	34
NOTES TO STATEMENT OF INCOME	Schedule XVIII	35

Page 2

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

LISTING OF INSTRUCTIONAL FILING REQUIREMENTS


Description of Reports or Statements		Page Number
*ORGANIZATION CHART*		36
*METHODS OF ALLOCATION*		37
*ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED*		38

Page 3

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

SCHEDULE I - COMPARATIVE BALANCE SHEET

Give balance sheet of the Company as of December 31 of the current and prior year.


		AS OF DECEMBER 31
ACCOUNT	ASSETS AND OTHER DEBITS	CURRENT			PRIOR
	SERVICE COMPANY PROPERTY
101	Service company property (Schedule II)	$	10,829,085		$	10,403,598
107	Construction work in progress (Schedule II)		—			—

	Total Property		10,829,085			10,403,598

108	Less accumulated provision for depreciation and amortization of service company property (Schedule III)		7,998,839			6,663,986

	Net Service Company Property		2,830,246			3,739,612

	INVESTMENTS
123	Investments in associate companies (Schedule IV)		—			—
124	Other investments (Schedule IV)		—			—

	Total investments		—			—

	CURRENT AND ACCRUED ASSETS
131	Cash		9,026			25,015
134	Special deposits		—			—
135	Working funds		5,995			6,000
136	Temporary cash investments (Schedule IV)		—			—
141	Notes receivable		—			—
143	Accounts receivable		85,058			67,846
144	Accumulated provision for uncollectable accounts		—			—
146	Accounts receivable from associate companies (Schedule V)		2,203,698			2,040,574
152	Fuel stock expense undistributed (Schedule VI)		—			—
154	Materials and supplies		—			—
163	Stores expense undistributed (Schedule VII)		—			—
165	Prepayments		204,753			178,683
174	Miscellaneous current and accrued assets (Schedule VIII)		—			—

	Total Current and Accrued Assets		2,508,530			2,318,118

	DEFERRED DEBITS
181	Unamortized debt expense		—			—
182	Regulatory Assets		—			(608,890	)
184	Clearing accounts		137,053			148,462
186	Miscellaneous deferred debits (Schedule IX)		(570,521	)		333,810
188	Research, development, or demonstration expenditures (Schedule X)		—			—
190	Accumulated deferred income tax		—			—

	Total Deferred Debits		(433,468	)		(126,618	)

	TOTAL ASSETS AND OTHER DEBITS		$4,905,308			$5,931,112

Page 4

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

SCHEDULE I - COMPARATIVE BALANCE SHEET


		AS OF DECEMBER 31
ACCOUNT	LIABILITIES AND PROPRIETARY CAPITAL	CURRENT			PRIOR
	PROPRIETARY CAPITAL
201	Common stock issued (Schedule XI)	$	1,000		$	1,000
211	Miscellaneous paid-in-capital (Schedule XI)		—			—
215	Appropriated retained earnings (Schedule XI)		—			—
216	Unappropriated retained earnings (Schedule XI)		1,688			1,688

	Total Proprietary Capital		2,688			2,688

	LONG-TERM DEBT
223	Advances from associate companies (Schedule XII)		—			—
224	Other long-term debt (Schedule XII)		—			—
225	Unamortized premium on long - term debt		—			—
226	Unamortized discount on long-term debt-debit		—			—

	Total Long-Term Debt		—			—

227	Obligations under capital leases - non-current		183,038			403,455
	CURRENT AND ACCRUED LIABILITIES
231	Notes payable		—			—
232	Accounts payable		293,048			65,742
233	Notes payable to associate companies (Schedule XIII)		4,491,075			3,807,632
234	Accounts payable to associate companies (Schedule XIII)		(2,141,781	)		(669,716	)
236	Taxes accrued		293,470			(149,318	)
237	Interest accrued		—			—
238	Dividends declared		—			—
241	Tax collections payable		—			—
242	Miscellaneous current and accrued liabilities (Schedule XIII)		4,385,782			4,036,796
243	Obligations under capital leases - current		412,619			566,714

	Total Current and Accrued Liabilities		7,734,213			7,657,850

	DEFERRED CREDITS
253	Other deferred credits		(983,290	)		(608,890	)
255	Accumulated deferred investment tax credits		—			—

	Total Deferred Credits		(983,290	)		(608,890	)

282	ACCUMULATED DEFERRED INCOME TAXES		(2,031,341	)		(1,523,991	)

	TOTAL LIABILITIES AND PROPRIETARY CAPITAL	$	4,905,308		$	5,931,112

Page 5

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

SCHEDULE II - SERVICE COMPANY PROPERTY


	DESCRIPTION	BALANCE AT BEGINNING OF YEAR		ADDITIONS		RETIREMENTS OR SALES			OTHER CHANGES^/1			BALANCE AT CLOSE OF YEAR
	Company Property
301	ORGANIZATION
303	MISC INTANGIBLE PLANT	$	4,578,556	$	306,202	$	—		$	—		$	4,884,758
304	LAND AND LAND RIGHTS
305	STRUCTURES AND IMPROVEMENTS
306	LEASEHOLD IMPROVEMENTS
307	EQUIPMENT ^2/		4,626,260		201,987		—			—			4,828,247
308	OFFICE FURNITURE AND EQUIPMENT		1,072,345		18,001		—			—			1,090,346
309	AUTOMOBILES, OTHER VEHICLES AND RELATED GARAGE EQUIPMENT		22,394		25,734		(22,394	)		—			25,734
310	AIRCRAFT AND AIRPORT EQUIPMENT
311	OTHER SERVICE COMPANY PROPERTY ^3/

	SUB-TOTAL		10,299,555		551,924		(22,394	)		—			10,829,085

107	CONSTRUCTION WORK IN PROGRESS		104,043		—		—			(104,043	)		—

	TOTAL	$	10,403,598	$	551,924	$	(22,394	)	$	(104,043	)	$	10,829,085

^1/	PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:

Page 6

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

SCHEDULE II - CONTINUED

^2/	SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF THE EQUIPMENT ADDITION DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR:


SUBACCOUNT DESCRIPTION	ADDITIONS		BALANCE AT CLOSE OF YEAR
Computer Systems	$	201,987	$	4,044,364
Phone System		—		755,249
Other Equipment		—		28,634

TOTAL	$	201,987	$	4,828,247

^3/	DESCRIBE OTHER SERVICE COMPANY PROPERTY:

NONE

^4/	DESCRIBE CONSTRUCTION WORK IN PROGRESS:

NONE

Page 7

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

SCHEDULE III

ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION OF SERVICE COMPANY PROPERTY


	DESCRIPTION	BALANCE AT BEGINNING OF YEAR		ADDITIONS CHARGED TO ACCOUNT 403		RETIREMENTS			OTHER CHANGES ADD (DEDUCT)^1/		BALANCE AT CLOSE OF YEAR
301	ORGANIZATION
303	MISCELLANEOUS INTANGIBLE PLANT	$	1,906,086	$	747,748	$	—		$	—	$	2,653,834
304	LAND AND LAND RIGHTS
305	STRUCTURES AND IMPROVEMENTS
306	LEASEHOLD IMPROVEMENTS
307	EQUIPMENT		3,773,960		506,509		—			—	$	4,280,469
308	OFFICE FURNITURE AND EQUIPMENT		961,985		75,235		—			—	$	1,037,220
309	AUTOMOBILES, OTHER VEHICLES AND RELATED GARAGE EQUIPMENT		21,955		27,755		(22,394	)		—	$	27,316
310	AIRCRAFT AND AIRPORT EQUIPMENT
311	OTHER SERVICE COMPANY PROPERTY

	TOTAL	$	6,663,986	$	1,357,247	$	(22,394	)	$	—	$	7,998,839

^1/	PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:

Page 8

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

SCHEDULE IV - INVESTMENTS


INSTRUCTIONS:		Complete the following schedule concerning investments. Under Account 124 “Other Investments” state each investment separately, with description, including the name of issuing company, number of shares or principal amount.

		Under Account 136, “Temporay Cash Investments” list each investment separately.


ACCOUNT	DESCRIPTION	BALANCE AT BEGINNING OF YEAR		BALANCE AT CLOSE OF YEAR
123	INVESTMENT IN ASSOCIATE COMPANIES	$	—	$	—
124	OTHER INVESTMENTS		—		—
136	TEMPORARY CASH INVESTMENTS		—		—

	TOTAL	$	—	$	—

Page 9

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES


INSTRUCTIONS:		Complete the following schedule listing accounts receivable from each associate company. Where the service company has provided accomodation or convenience payments for associate companies, a separate listing of total payments for each associate company by subaccount should be provided.


DESCRIPTION	BALANCE AT BEGINNING OF YEAR		BALANCE AT CLOSE OF YEAR
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
Unitil Energy Systems	$	992,005	$	1,074,047
Fitchburg Gas and Electric Light Company		861,912		978,901
UNITIL Power Corp.		—		—
UNITIL Realty Corp.		962		12,452
UNITIL Corporation		62,601		617
UNITIL Resources, Inc.		123,094		137,681

TOTAL	$	2,040,574	$	2,203,698


ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
Unitil Energy Systems			$	5,858,634
Fitchburg Gas and Electric Light Company				4,316,652
UNITIL Power Corp.				295,246
UNITIL Realty Corp.				50,489
UNITIL Resources, Inc.				11,158
Usource Inc.				39,939
UNITIL Corp.				26,160
For detail of convenience payments by type and company, paid by UNITIL Service Corp. see page 10A.

TOTAL PAYMENTS			$	10,598,278

Page 10

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

CONVENIENCE PAYMENTS BY TYPE AND COMPANY


	UES		FGE		UPC		URC		URI		Usource		UC		Total
Insurance	$	3,412,883	$	2,854,170			$	39,630	$	2,402					$	6,309,085
Legal		234,069		281,753		279,955				6,460				13,565		815,802
Telephone Service		47,286		39,876								18,955				106,117
Audit Fees		103,080		90,318				5,070		2,296		2,333		9,480		212,577
Other		2,061,316		1,050,535		15,291		5,789				18,651		3,115		3,154,697

	$	5,858,634	$	4,316,652	$	295,246	$	50,489	$	11,158	$	39,939	$	26,160	$	10,598,278

Page 10A

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

SCHEDULE VI - FUEL STOCK EXPENSES UNDISTRIBUTED


INSTRUCTIONS:		Report the amount of labor and expenses incurred with respect to fuel stock expense during the year and indicate amount attributable to each associate company. Under the section headed “Summary” listed below give an overall report of the fuel functions performed by the service company.


ACCOUNT		LABOR		EXPENSE		TOTAL
152	FUEL STOCK EXPENSE UNDISTRIBUTED	$	—	$	—	$	—

	TOTAL	$	—	$	—	$	—

SUMMARY:

Page 11

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED


INSTRUCTIONS:		Report the amount of labor and expenses incurred with respect to stores expense during the year and indicate amount attributable to each associate company.


ACCOUNT	DESCRIPTION	LABOR		EXPENSE		TOTAL
163	STORES EXPENSE UNDISTRIBUTED	$	—	$	—	$	—

	TOTAL	$	—	$	—	$	—

Page 12

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

SCHEDULE VIII - MISCELLANEOUS CURRENT & ACCRUED ASSETS


INSTRUCTIONS:		Provide detail of items in this account. Items less than $10,000 may be grouped, showing the number of items in each group.


ACCOUNT	DESCRIPTION	BALANCE AT BEGINNING OF YEAR		BALANCE AT CLOSE OF YEAR
174	MISCELLANEOUS CURRENT & ACCRUED ASSETS	$	—	$	—

	TOTAL	$	—	$	—

Page 13

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS


INSTRUCTIONS:		Provide detail of items in this account. Items less than $10,000 may be grouped by class showing the number of items in each class.


ACCOUNT	DESCRIPTION	BALANCE AT BEGINNING OF YEAR			BALANCE AT CLOSE OF YEAR
186	MISCELLANEOUS DEFERRED DEBITS
	Deferred Asset- APBO	$	—		$	(983,290	)
	Under/(over) collected administrative expenses		(1,820	)		(101,500	)
	Software		93,429			229,697
	Postage		37,201			50,540
	Deferred Charges		205,000			234,032

	TOTAL	$	333,810		$	(570,521	)

Page 14

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

SCHEDULE X - RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES


INSTRUCTIONS:		Provide a description of each material research, development, or demonstration project which incurred costs by the service corporation during the year.


	DESCRIPTION	BALANCE AT CLOSE OF YEAR
188	RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES	$	—

	TOTAL	$	—

Page 15

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

SCHEDULE XI - PROPRIETARY CAPITAL


INSTRUCTIONS:		Classify amounts in each account with brief explanations, disclosing the general nature of transactions which gave rise to the reported amounts.


ACCOUNT	CLASS OF STOCK	NUMBER OF SHARES AUTHORIZED	PAR OR STATED VALUE PER SHARE		OUTSTANDING CLOSE OF PERIOD
ACCOUNT	CLASS OF STOCK	NUMBER OF SHARES AUTHORIZED	PAR OR STATED VALUE PER SHARE		NO. OF SHARES	TOTAL AMOUNT
201	COMMON STOCK ISSUED	300	$	10.00	100	$	1,000.00

ACCOUNT	DESCRIPTION					AMOUNT
211	MISCELLANEOUS PAID-IN CAPITAL					$	—
215	APPROPRIATED RETAINED EARNINGS						—

	TOTAL					$	—


INSTRUCTIONS:		Give particulars concerning net income or (loss) during the year, distinguishing between compensation for the use of capital owned or net loss remaining from servicing nonassociates per the General Instructions of the Uniform System of Accounts. For dividends paid during the year in cash or otherwise, provide rate percentage, amount of dividend, rate declared and date paid.


	DESCRIPTION	BALANCE AT BEGINNING OF YEAR		NET INCOME OR (LOSS)		DIVIDENDS PAID		BALANCE AT CLOSE OF YEAR
216	UNAPPROPRIATED RETAINED EARNINGS	$	1,688	$	—	$	—	$	1,688

	TOTAL	$	1,688	$	—	$	—	$	1,688

Page 16

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

SCHEDULE XII - LONG-TERM DEBT


INSTRUCTIONS:		Advances from associate companies should be reported separately for advances on notes, and advances on open account. Names of associate companies from which advances are received shall be shown under the class and series obligation column. For account 224 - Other Long-Term Debt provide the name of creditor company or organization, terms of the obligation, date of maturity, interest rate, and the amount authorized and outstanding.


ACCOUNT	DESCRIPTION	NAME OF CREDITOR	TERMS OF OBLIG CLASS & SERIES OF OBLIGATION	DATE OF MATURITY	INTEREST RATE	AMOUNT AUTHORIZED	BALANCE AT BEGINNING OF YEAR		ADDITIONS		DEDUCTIONS		^1/ BALANCE AT CLOSE OF YEAR
223	ADVANCES FROM ASSOCIATE COMPANIES:						$	—	$	—	$	—	$	—
224	OTHER LONG-TERM DEBT:							—		—		—		—

	TOTAL						$	—	$	—	$	—	$	—

^1/	GIVE AN EXPLANATION OF DEDUCTIONS:

Page 17

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES


INSTRUCTIONS:		Provide balance of notes and accounts payable to each associate company. Give description and amount of miscellaneous current and accrued liabilities. Items less than $10,000 may be grouped, showing the number of items in each group.


ACCOUNT	DESCRIPTION	BALANCE AT BEGINNING OF YEAR			BALANCE AT CLOSE OF YEAR
233	NOTES PAYABLE TO ASSOCIATE COMPANIES
	Cash Pool	$	3,807,632		$	4,491,075

	TOTAL	$	3,807,632		$	4,491,075

234	ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
	Unitil Energy Systems	$	(872,238	)	$	(1,294,797	)
	Fitchburg Gas and Electric Company		(273,749	)		(723,479	)
	UNITIL Corporation		550,870			11,518
	UNITIL Power Corporation		(67,455	)		(164,742	)
	UNITIL Realty Corporation		(1,078	)		6,682
	UNITIL Resources Inc.		(458	)
	Usource LLC		(5,608	)		23,037

	TOTAL	$	(669,716	)	$	(2,141,781	)

242	MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES
	Accrued Pension Costs	$	1,358,195		$	1,351,123
	Accrued SERP		904,151			1,025,384
	Accrued PBOP Costs		481,878			1,120,541
	Accrued Vacation		240,000			234,031
	Accrued Compensation		929,100			564,413
	Accrued Other		123,472			90,290

	TOTAL	$	4,036,796		$	4,385,782

Page 18

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

SCHEDULE XIV - NOTES TO FINANCIAL STATEMENTS


INSTRUCTIONS:		The space below is provided for important notes regarding the financial statements or any account thereof. Furnish particulars as to any significant contingent asset or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in the report may be indicated here by reference.

Selected Notes to the Financial Statements:

UNITIL Service Corp. (USC), a wholly-owned subsidiary of UNITIL Corporation, a public utility holding company, provides centralized support services to the parent company and its subsidiaries. USC is subject to the jurisdiction of the Securities and Exchange Commission (SEC) under the Public Utility Holding Company Act of 1935. Accordingly, USC maintains its books of account as prescribed by the “Uniform System of Accounts for Mutual Service Companies and Subsidiary Service Companies” as Amended February 2, 1979 to be effective January 1, 1980. USC prepares its financial statements in conformity with generally accepted accounting principles.

Please refer to the 2004 UNITIL Corporation Form 10-K for additional disclosures.

Page 19

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

SCHEDULE XV - STATEMENT OF INCOME


ACCOUNT	DESCRIPTION	CURRENT YEAR			PRIOR YEAR
	*INCOME*
457	Services rendered to associate companies	$	21,841,189		$	19,367,031
458	Services rendered to nonassociate companies		—			30,000
419	Interest Income
421	Miscellaneous income or (loss)		—			8,297

	Total Income		21,841,189			19,405,328


	*EXPENSE*
920	Salaries and wages		10,736,961			9,896,462
921	Office supplies and expenses		903,121			868,672
922	Other		505,679			42,861
923	Outside services employed		646,238			475,512
924	Property insurance		7,821			7,955
925	Injuries and damages		105,495			82,861
926	Employee pensions and benefits		4,095,582			2,607,570
930.1	Advertising expense		14,706			3,553
930.2	Miscellaneous general expense		481,050			559,669
931	Rents		1,535,159			1,467,487
932	Maintenance		581,389			592,902
403	Depreciation and amortization expense		1,361,776			1,672,692
408	Taxes other than income taxes		849,668			825,889
409	Income taxes		229,749			(31,061	)
410	Provision for deferred income taxes		(338,154	)		124,985
426.1	Donations		28,398			50,324
426.5	Penalties		—			1,983
430	Interest on debt to associate companies		16,855			6,684
431	Other interest expense		79,696			148,328

	Total Expense		21,841,189			19,405,328

	Net Income or (Loss)	$	—		$	—

Page 20

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

ANALYSIS OF BILLING - ASSOCIATE COMPANIES ACCOUNT 457


NAME OF ASSOCIATE COMPANY	DIRECT COSTS CHARGED 457-1		INDIRECT COSTS CHARGED 457-2		COMPENSATION FOR USE OF CAPITAL 457-3		TOTAL AMOUNT BILLED
Unitil Energy Systems, Inc.	$	5,540,578	$	5,146,304	$	—	$	10,686,882
Fitchburg Gas and Electric Light Company		5,004,504		4,674,070		—		9,678,574
UNITIL Realty Corp.		45,730		48,759		—		94,489
UNITIL Resources, Inc.		692,527		683,207		—		1,375,734
UNITIL Corp.		2,655		2,855		—		5,510

TOTAL	$	11,285,994	$	10,555,195	$	—	$	21,841,189

Page 21

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

ANALYSIS OF BILLING - NON-ASSOCIATE COMPANIES ACCOUNT 458

NAME OF NONASSOCIATE COMPANY

DIRECT
COSTS
CHARGED
457-1

INDIRECT
COSTS
CHARGED
457-2

COMPENSATION
FOR USE

OF CAPITAL

457-3

TOTAL
COST

EXCESS

DEFICIENCY

458-4

TOTAL
AMOUNT
BILLED

None

—

TOTAL

—

INSTRUCTION: Provide a brief description of the services rendered to each nonassociate company.

Page 22

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

SCHEDULE XVI - ANALYSIS OF CHARGES FOR SERVICE ASSOCIATE AND NON-ASSOCIATE COMPANIES


INSTRUCTION:		Total cost of service will equal for associate and non associate companies the total amount billed under their separate analysis of billing schedules.


ACCOUNT	DESCRIPTION OF ITEMS	ASSOCIATE COMPANY CHARGES								NONASSOCIATE COMPANY CHARGES						TOTAL CHARGES FOR SERVICE
ACCOUNT	DESCRIPTION OF ITEMS	DIRECT COST		INDIRECT COST			TOTAL			DIRECT COST		INDIRECT COST		TOTAL		DIRECT COST		INDIRECT COST			TOTAL
920	SALARIES AND WAGES	$	9,746,418	$	990,543		$	10,736,961				$	—	$	—	$	9,746,418	$	990,543		$	10,736,961
921	OFFICE SUPPLES AND EXPENSES		245		902,876			903,121							—		245		902,876			903,121
922	ADMIN EXPENSE TRANS-CREDIT				505,679			505,679							—		—		505,679			505,679
923	OUTSIDE SERVICES EMPLOYED		90,691		555,547			646,238							—		90,691		555,547			646,238
924	PROPERTY INSURANCE				7,821			7,821							—		—		7,821			7,821
925	INJURIES AND DAMAGES				105,495			105,495							—		—		105,495			105,495
926	EMPLOYEE PENSIONS AND BENEFITS				4,095,582			4,095,582							—		—		4,095,582			4,095,582
928	REGULATORY COMMISSION EXPENSE				—			—							—		—		—			—
930.1	GENERAL ADVERTISING EXPENSE				14,706			14,706							—		—		14,706			14,706
930.2	MISC. GENERAL EXPENSE				481,050			481,050							—		—		481,050			481,050
931	RENTS				1,535,159			1,535,159							—		—		1,535,159			1,535,159
932	MAINT. OF STRUCT. & EQUIP.		1,448,640		(867,251	)		581,389							—		1,448,640		(867,251	)		581,389
403	DEPR. AND AMORT. EXPENSE				1,361,776			1,361,776							—		—		1,361,776			1,361,776
408	TAXES OTHER THAN INCOME				849,668			849,668							—		—		849,668			849,668
409	INCOME TAXES				229,749			229,749							—		—		229,749			229,749
410	PROV FOR DEF INC TAXES				(338,154	)		(338,154	)						—		—		(338,154	)		(338,154	)
411	PROV FOR DEF INC TAX CREDIT							—							—		—		—			—
411.5	INVESTMENT TAX CREDIT							—							—		—		—			—
419	INTEREST INCOME							—							—		—		—			—
426.1	DONATIONS				28,398			28,398							—		—		28,398			28,398
426.5	PENALTIES				—			—							—		—		—			—
427	INTEREST ON LONG-TERM DEBT							—							—		—		—			—
431	OTHER INTEREST EXPENSE				79,696			79,696							—		—		79,696			79,696

	SUBTOTAL EXPENSES		11,285,994		10,538,340			21,824,334			—		—		—		11,285,994		10,538,340			21,824,334

	COMPENSATION FOR USE OF EQUITY CAPITAL							—							—							—

430	INTEREST ON DEBT TO ASSOCIATE COMPANIES		—		16,855			16,855			—		—		—		—		16,855			16,855

	TOTAL EXPENSES		11,285,994		10,555,195			21,841,189			—		—		—		11,285,994		10,555,195			21,841,189

421	MISCELLANEOUS INCOME		—					—			—		—		—		—		—			—

	TOTAL COST OF SERVICE	$	11,285,994	$	10,555,195		$	21,841,189		$	—	$	—	$	—	$	11,285,994	$	10,555,195		$	21,841,189

Page 23

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

SCHEDULE XVII - SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION


INSTRUCTION:		Indicate each department or service function. (See instruction 01-3 General Structure of Accounting System Uniform System Account)


ACCOUNT	DESCRIPTION OF ITEMS	TOTAL AMOUNT			DEPARTMENT OR SERVICE FUNCTION											DEPARTMENT OR SERVICE FUNCTION
ACCOUNT	DESCRIPTION OF ITEMS	TOTAL AMOUNT			REGULATORY & COMMUN.		ADMIN.		ACCOUNTING			ENERGY MARKETS		DISTRIBUTION		FINANCE		CUSTOMER SERVICES		ENGINEERING		TECHNOLOGY
920	SALARIES AND WAGES	$	10,736,961		$	1,091,828	$	2,509,340	$	1,065,685		$	1,070,011	$	620,807	$	699,427	$	1,735,080	$	1,085,272	$	859,511
921	OFFICE SUPPLES AND EXPENSES		903,121			96,402		414,011		17,722			14,159		15,693		41,005		96,065		64,452		143,612
922	ADMIN. EXPENSE TRANS-CREDIT		505,679							505,679
923	OUTSIDE SERVICES EMPLOYED		646,238			10,712		385,789		72,139			5,120				9,112		77,015		231		86,120
924	PROPERTY INSURANCE		7,821														7,821
925	INJURIES AND DAMAGES		105,495														105,495
926	EMPLOYEE PENSIONS AND BENEFITS		4,095,582			13,619		3,973,502		3,778			15,000		7,467		189		29,103		48,436		4,488
928	REGULATORY COMMISSION EXPENSE		—
930.1	GENERAL ADVERTISING EXPENSE		14,706					14,706
930.2	MISC. GENERAL EXPENSE		481,050			7,559		7,009		14,807							451,675
931	RENTS		1,535,159					84,151		(659,007	)		12,950				1,583,697		52,962		14,278		446,128
932	MAINT. OF STRUCT. & EQUIP.		581,389					343,780		41,042									94,862				101,705
403	DEPR. AND AMORT. EXPENSE		1,361,776							1,361,776
408	TAXES OTHER THAN INCOME		849,668							849,668
409	INCOME TAXES		229,749							229,749
410	PROV. FOR DEF. INC. TAXES		(338,154	)						(338,154	)
411	PROV. FOR DEF. INC. TAX CREDIT		—
411.5	INVESTMENT TAX CREDIT		—
426.1	DONATIONS		28,398					28,398
426.5	PENALTIES		—
427	INTEREST ON LONG-TERM DEBT		—
430	INTEREST ON DEBT TO ASSOCIATE COMPANIES		16,855														16,855
431	OTHER INTEREST EXPENSE		79,696														79,696

	TOTAL EXPENSES -	$	21,841,189		$	1,220,120	$	7,760,686	$	3,164,884		$	1,117,240	$	643,967	$	2,994,972	$	2,085,087	$	1,212,669	$	1,641,564

Page 2425

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

DEPARTMENTAL ANALYSIS OF SALARIES - ACCOUNT 920


NAME OF DEPARTMENT Indicate each department or service function	TOTAL AMOUNT		DEPARTMENTAL SALARY EXPENSE INCLUDED IN AMOUNTS BILLED TO						NUMBER PERSONNEL END OF YEAR
	TOTAL AMOUNT		PARENT COMPANY		OTHER ASSOCIATES		NON ASSOCIATES		NUMBER PERSONNEL END OF YEAR
Regulatory and Communications	$	1,091,828	$	—	$	1,091,828	$	—	16
Technology Services		859,511		—		859,511		—	13
Accounting		1,065,685		—		1,065,685		—	18
Finance		699,427		—		699,427		—	9
Administrative		2,509,340		—		2,509,340		—	20
Energy Markets		1,070,011		—		1,070,011		—	13
Engineering		1,085,272		—		1,085,272		—	18
Distribution		620,807		—		620,807		—	6
Customer Services		1,735,080		—		1,735,080		—	43

TOTAL	$	10,736,961	$	—	$	10,736,961	$	—	156

Page 26

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

OUTSIDE SERVICES EMPLOYED - ACCOUNT 923


INSTRUCTIONS:		Provide a breakdown by subaccount of outside services employed. If the aggregate amounts paid to any one payee and included within one subaccount is less than $25,000 only the aggregate number and amount of all such payments included within the subaccount need to be shown. Provide a subtotal for each type of service.


FROM WHOM PURCHASED	ADDRESS	RELATIONSHIP “A”= ASSOCIATE “NA”=NON ASSOCIATE	AMOUNT
*Outside Services - Legal*
Various		NA	$	1,043
Brickly Sears		NA		2,252
Leboeuf Lamb & Greene		NA		102,319
Skapars & Associates		NA		19,870
Sulloway & Hollis		NA		17,544
*Outside Services - Accounting*
Grant Thornton		NA		9,148
*Outside Services - Other*
Various		NA		4,068
Account Temps		NA		8,644
Allegiant Management		NA		18,360
Carousel Industries		NA		4,500
Ceridian		NA		154,707
Diversified Actuarials		NA		20,585
Douglas Andrews		NA		19,005
Energy Council		NA		4,590
Energy Strategies		NA		4,235
Equilar Inc.		NA		7,495
Equifax Credit Information		NA		8,472
Factors Funding Co.		NA		28,537
Galley Hatch		NA		2,035
Group Dynamic		NA		6,082
IBM		NA		1,096
MessagePro		NA		1,705
Peter Wilkins		NA		7,950
Pomerantz Staffing		NA		6,288
Putnam Fiduciary Trust		NA		13,516
R R Donnelley		NA		4,968
Salomon Smith Barney		NA		16,616
San Diego Commercial		NA		9,439
The Hay Group		NA		39,177
The Tetrion Group		NA		32,020
Towers Perrin		NA		5,200
Venture Profiles		NA		23,130
Woodland Group		NA		25,810
*Outside Services - Corp Sponsorships*
Various		NA		5,120
*Outside Services - Visibility*
Various		NA		10,712

TOTAL			$	646,238

Page 27

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

EMPLOYEE PENSIONS AND BENEFITS - ACCOUNT 926


INSTRUCTIONS:		Provide a listing of each pension plan and benefit program provided by the service company. Such listing should be limited to $25,000.


DESCRIPTION	AMOUNT
Health Insurance	$	1,379,065
401 K		236,644
Pension Cost		742,274
SERP		193,644
Life Insurance		49,571
Education		141,744
Postretirement Benefit Cost		1,138,663
Other		213,977

TOTAL	$	4,095,582

Page 28

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

GENERAL ADVERTISING EXPENSES - ACCOUNT 930.1


INSTRUCTIONS:		Provide a listing of the amounts included in Account 930.1 “General Advertising Expenses” classifying the items according to the nature of the advertising and as defined in the account definition. If a particular class includes an amount in excess of $3,000 applicable to a single payee, show separately the name of the payee and the aggregate amount applicable thereto.


DESCRIPTION	NAME OF PAYEE	AMOUNT
*Advertising:*
	Advance Notice, Inc.	$	10,277
	Other		2,649
	Monster.Com		1,780

	TOTAL	$	14,706

Page 29

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

MISCELLANEOUS GENERAL EXPENSES - ACCOUNT 930.2


INSTRUCTIONS:		Provide a listing of the amount included in Account 930.2 ”Miscellaneous General Expense” classifying such expenses according to their nature. Payments and expenses permitted by Section 321(b)(2) of the Federal Election Campaign Act, as amended by Public Law 94-283 in 1976 (2 U.S.C 441 (b) (2) shall be separately classified.


DESCRIPTION		AMOUNT
Printing and Distribution of Quarterly and Annual Reports		122,870
Director’s Fees and Expenses		328,735
Systems Development Costs		19,445
Professional Fees		10,000

TOTAL		481,050

Page 30

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

RENTS - ACCOUNT 931


INSTRUCTIONS:		Provide a listing of the amount included in Account 931, “Rents” classifying such expenses by major groupings of property, as defined in the account definition of the Uniform System of Accounts.


TYPE OF PROPERTY	AMOUNT
Office, Equipment & Other	$	1,535,159
		—
		—

TOTAL	$	1,535,159

Page 31

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

TAXES OTHER THAN INCOME TAXES - ACCOUNT 408


INSTRUCTIONS:		Provide an analysis of Account 408, “Taxes Other Than Income Taxes.” Separate the analysis into two groups: (1) other than U.S. Government and (2) U.S. Government taxes. Specify each of the various kinds of taxes and show the amounts there of. Provide a subtotal for each class of tax.


KIND OF TAX	AMOUNT
*Other than U.S. Government Tax:*
State Unemployment Tax - NH	$	28,771
Business Enterprise Tax		72,000

		100,771

*U.S. Government Tax:*
Federal Insurance Contribution Act		739,190
Federal Unemployment Tax		9,707

		748,897

TOTAL	$	849,668

Page 32

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

DONATIONS - ACCOUNT 426.1


INSTRUCTIONS:		Provide a listing of the amount included in Account 426.2, “Donations” classifying such expenses by its purpose. The aggregate number and amount of all items of less than $3,000 may be shown in liew of details


NAME OF RECIPIENT	PURPOSE OF DONATION	AMOUNT
UNH Foundation		$	5,000
United Way			4,000
Scleroderma Foundation			1,220
American Cancer Society			1,219
Various			16,959

TOTAL		$	28,398

Page 33

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

OTHER DEDUCTIONS - ACCOUNT 426.5


INSTRUCTIONS:		Provide a listing of the amount included in Account 426.5, “Other Deductions,” classifying such expenses according to their nature.


DESCRIPTION	NAME OF PAYEE	AMOUNT
		$	—

TOTAL		$	—

Page 34

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

SCHEDULE XVIII -NOTES TO STATEMENT OF INCOME


INSTRUCTIONS:		The space below is provided for important notes regarding the statement of income or any account thereof. Furnish particulars as to any significant increases in services rendered or expenses incurred during the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference.

See page 19.

Page 35

ANNUAL REPORT OF UNITIL SERVICE CORP

For the Year Ended December 31, 2004

ORGANIZATION CHART

Organization Chart as of December 31, 2004


President & Treasurer		Mark H. Collin
Senior Vice President		George R. Gantz
Senior Vice President		Thomas P. Meissner, Jr.
Vice President		Todd R. Black
Vice President & Controller		Laurence M. Brock
Vice President		David K. Foote
Vice President		George E. Long
Vice President		Raymond J. Morrissey
Asst. Treasurer		Charles J. Kershaw, Jr.
Secretary		Sandra L. Whitney

Page 36

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

ANNUAL REPORT OF UNITIL SERVICE CORPORATION

METHODS OF ALLOCATION

The cost of services rendered by UNITIL Service are allocated and billed based on direct time charges and to a lesser extent, direct cost assigned to individual projects or jobs performed on behalf of associated companies in accordance with the general guidelines set forth below.

A. Direct Labor Cost – Gross Wages. Direct Labor Cost – Gross Wages are based on the actual gross wage rates of assigned employees multiplied by the actual number of hours worked and directly charged to specific projects or jobs.

B. Direct Labor Cost – Other. Direct Labor Cost – Other includes the costs of paid absences, such as vacations, sick pay and holidays, and are allocated by employee based on the direct time charged to associated companies. In the event there are not direct time charges available for this allocation, the direct time charges for all UNITIL Service employees are used to make this allocation.

C. General Overhead Costs, including Indirect Labor – General Overhead Costs represent UNITIL Service Indirect Labor Costs and Administrative and General Expenses, and are allocated based on a monthly overhead rate applied against direct time charges. Indirect Labor Costs include pension costs, insurance, payroll taxes, employee savings plan, and similar payroll and benefit items. Administrative and General Expenses are those administrative and operating expenses incurred by UNITIL Service in providing services to associated companies which cannot be identified with or directly charged to a specific project or job.

D. Direct Charges – Direct Charges are costs that are directly assignable based on the individual projects or jobs performed on behalf of associated companies, and are excluded from General Overheads. Direct Charges are billed at actual cost and include: Employee Travel, Meals, Lodging, and Other Related Expenses, Data Management Hardware Leases and Maintenance Costs, Telephone Lease, and other miscellaneous expenses.

Page 37

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

ANNUAL REPORT OF UNITIL SERVICE CORPORATION

ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED

Non applicable

Page 38

ANNUAL REPORT OF UNITIL SERVICE CORP.

For the Year Ended December 31, 2004

SIGNATURE CLAUSE

Pursuant to the requirements of the Public Utility Holding Company Act of 1935 and the rules and regulations of the Securities and Exchange Commission issued thereunder, the undersigned company has duly caused this report to be signed on its behalf of the undersigned officer thereunto duly authorized,


UNITIL Service Corp.
(Name of Reporting Company)

By:		/s/ LAURENCE M. BROCK
		Laurence M. Brock
		Vice President & Controller

Date: April 26, 2005

Page 39

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