Commission File Number: 30-246
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
FORM U5S
ANNUAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2002
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, 2002
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........................................................... 9
5. Investments in Securities of Nonsystem
Companies............................................................ 11
6. Officers and Directors............................................... 13
7. Contributions and Public Relations................................... 47
8. Service, Sales and Construction Contracts............................ 47
9. Wholesale Generators and Foreign Utility
Companies............................................................ 48
10. Financial Statements and Exhibits.................................... 51
Independent Auditors' Consent........................................ F-1
Signature............................................................ F-5
1
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2002
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) (h) 6,035,205 100%
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%
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) - -
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) - -
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) - -
2 Norconn Properties, Inc. (Norconn) 200 100%
Unsecured Debt (Note B) - -
2 Yankee Energy Services Company (YESCO) 200 100%
2 Yankee Energy Financial Services Company (YEFSCO) 200 100%
Unsecured Debt (Note B) - -
2 Housatonic Corporation* 100 100%
2 R.M. Services, Inc. (RMS) (d) 1,000 10%
1 Northeast Utilities Service Company (NUSCO) - 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) - -
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) - -
2 Select Energy Portland Pipeline, Inc. (g) - -
2 Mode 1 Communications, Inc. 100 100%
2 Woods Network Services, Inc. 100 100%
Unsecured Debt (Note B) - -
2 Select Energy, Inc. (Select Energy) 100 100%
Unsecured Debt (Note B) - -
3 Select Energy New York, Inc. (SENY) 10,000 100%
Unsecured Debt (Note B) - -
2 Select Energy Services, Inc. (SESI) 100 100%
Unsecured Debt (Note B) - -
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) - -
1 The Rocky River Realty Company (RRR) 100 100%
Unsecured Debt (Note B) - -
1 Northeast Nuclear Energy Company (NNECO)* 1,500 100%
*Inactive.
2
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2002
Issuer Owner's
Book Value Book Value
(000's) (000's) Type of Business
------- ------- ----------------
Registered Holding Company
$695,842 $695,842 Electric Utility
258,423 258,423 Special Purpose Entity (SPE)
7,193 7,193 SPE
321,830 321,830 Electric Utility
6,009 6,009 Real Estate (c)
3,126 3,126 SPE
251 251 SPE
157,960 157,960 Electric Utility
85,900 85,900
776 776 SPE
21,338 21,338 Electric Utility
14 14 Service Company
6,224 6,224 Electric Utility
9,600 9,600
117 117 Electric Utility
527,066 527,066 Intermediate Holding Company
502,963 502,963 Gas Utility
66,000 66,000
390 390 Real Estate (c)
300 300
4,959 4,959 Rule 58 Energy-Related Company
1,477 1,477 Financial Services
3,200 3,200
(192) (192) *
12,486 12,486 Receivables Services (d)
1 1 Service Company
546,215 546,215 Intermediate Holding Company
438,681 438,681 Exempt Wholesale Generator
15,545 15,545 Rule 58 Energy-Related Company
18,500 18,500
13,660 13,660 Rule 58 Energy-Related Company
8 8 Rule 58 Energy-Related Company
4,892 4,892 Rule 58 Energy-Related Company (e)
4,450 4,450
- - (g)
12,003 12,003 Exempt Telecommunications Company
2,873 2,873 Exempt Telecommunications Company (f)
4,150 4,150
35,929 35,929 Rule 58 Energy-Related Company
168,200 168,200
34,199 34,199 Rule 58 Energy-Related Company
20,699 20,699
31,031 31,031 Energy Services Company
6,450 6,450
16,780 16,780 Rule 58 Energy-Related Company
(42) (42) Rule 58 Energy-Related Company
707 707 SPE, Rule 58 Energy-Related Company
1 1 SPE, Rule 58 Energy-Related Company
(2,598) (2,598) Real Estate (c)
4,000 4,000
878 878 Real Estate (c)
32,650 32,650
16,216 16,216 Service Company
3
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2002
(CONTINUED)
Number of % of
Tier Name of Company (Company Abbreviation) Shares Owned Voting Power
---- -------------------------------------- ------------ ------------
1 Charter Oak Energy, Inc. (COE)* 100 100%
2 Charter Oak Argentina II Corporation (g) - -
2 Charter Oak Ave Fenix Corporation (g) - -
2 Charter Oak Development Corporation (g) - -
*Inactive.
4
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2002
(CONTINUED)
Issuer Owner's
Book Value Book Value
(000's) (000's) Type of Business
------- ------- ----------------
269 269 *
- - (g)
- - (g)
- - (g)
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) On June 30, 2001, RMS was sold to a management group and YES exchanged
its 100 percent common stock ownership for preferred securities having
a 10 percent common stock equivalent voting interest.
(e) On July 31, 2002, NGS completed the acquisition of the assets of Woods
Electrical Co., Inc. (Woods Electrical), a company engaged in
electrical contracting services, located in Farmington, Connecticut.
The assets of Woods Electrical were acquired through a new Connecticut
corporation called NGS Acquisition, Inc. Following the release of the
rights to the name of the company, on August 9, 2002, an amendment to
the Certificate of Incorporation for NGS Acquisition, Inc. was filed
with the Connecticut Secretary of State to change the name of this
company to Woods Electrical Co., Inc. Woods Electrical is a
wholly-owned subsidiary of NGS. 100 shares of common stock, no par
value, were issued to NGS for $100 per share on July 30, 2002. This
company will also be registered to do business in Maine, Massachusetts
and New Hampshire.
(f) On July 31, 2002, NUEI completed the acquisition of the assets of Woods
Network Services, Inc. (Woods Network Services), a company engaged in
the design, integration and implementation of voice, data, video, audio
and other low-voltage control systems, located in Farmington,
Connecticut.
The assets of Woods Network Services were acquired through a new
Connecticut corporation called NGS Telecommunications, Inc. Following
the release of the rights to the name of the company, on August 9,
2002, an amendment to the Certificate of Incorporation for NGS
Telecommunications, Inc., was filed with the Connecticut Secretary of
State to change the name of this company to Woods Network Services,
Inc. Woods Network Services is a wholly-owned subsidiary of NUEI. One
hundred shares of common stock, no par value, were issued to NUEI for
$100 per share on July 30, 2002. This company will also be registered
to do business in Maine, Massachusetts and New Hampshire.
(g) Dissolved on October 28, 2002.
(h) CL&P has three inactive subsidiaries not listed in this table, The
Connecticut Steam Company, The Nutmeg Power Company and Electric Power
Incorporated.
6
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2002
(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)(b) 120,750 34.5% $20,121
Maine Yankee Atomic Power Co. (a)(b) 44,196 12.0 6,917
Vermont Yankee Nuclear Power Corp. (a)(c)(d) 37,242 10.1 5,171
Yankee Atomic Electric Co. (a)(b) 1,879 24.5 -
Public Service Company of New Hampshire:
Connecticut Yankee Atomic Power Co. (a)(b) 17,500 5.0 3,118
Maine Yankee Atomic Power Co. (a)(b) 18,415 5.0 2,823
Vermont Yankee Nuclear Power Corp. (a)(c)(d) 15,681 4.3 2,104
Yankee Atomic Electric Co. (a)(b) 537 7.0 -
Western Massachusetts Electric Company:
Connecticut Yankee Atomic Power Co. (a)(b) 33,250 9.5 5,531
Maine Yankee Atomic Power Co. (a)(b) 11,049 3.0 1,737
Vermont Yankee Nuclear Power Corp. (a)(c)(d) 9,800 2.6 1,367
Yankee Atomic Electric Co. (a)(b) 537 7.0 -
Total System Investment:
Connecticut Yankee Atomic Power Co. (a)(b) 171,500 49.0 28,770
Maine Yankee Atomic Power Co. (a)(b) 73,660 20.0 11,477
Vermont Yankee Nuclear Power Corp. (a)(c)(d) 62,723 17.0 8,642
Yankee Atomic Electric Co. (a)(b) 2,953 38.5 -
Northeast Utilities:
New England Hydro-Transmission
Electric Company, Inc. (a) 594,776 22.66 8,196
New England Hydro-Transmission Corp. (a) 2,397 22.66 3,805
(a) These investments are variable interest entities under FASB
Interpretation No. 46.
(b) Yankee Atomic Electric Co.'s, Connecticut Yankee Atomic Power Co.'s and
Maine Yankee Atomic Power Co.'s nuclear power plants were shut down
permanently on February 26, 1992, December 4, 1996, and August 6, 1997,
respectively.
7
(c) On July 31, 2002, Vermont Yankee Nuclear Power Corporation (VYNPC)
consummated the sale of its nuclear generating plant to a subsidiary of
Entergy Corporation (Entergy) for approximately $180 million. As part
of the sale, Entergy assumed responsibility for decommissioning VYNPC's
nuclear generating unit. Under the terms of the sale, CL&P, PSNH and
WMECO will continue to buy approximately 16 percent of the plant's
output through March 2012 at a range of fixed prices.
(d) The ownership interests of CL&P, PSNH and WMECO in VYNPC increased
slightly in early 2002 when VYNPC redeemed the stock owned by certain
Vermont municipal electric systems which had previously owned about
five percent of VYNPC's stock.
Note B: This table represents all system money pool borrowings and NU Parent
advances at December 31, 2002.
System Money Pool Principal Issuer Owner's
Name of Company and NU Parent Advances Amount Owed Book Value Book Value
--------------- ---------------------- ----------- ---------- ----------
(Thousands of Dollars)
WMECO 1.2% System Money Pool $ 85,900 $ 85,900 $ 85,900
HWP Variable Rate, Payable Upon Demand (a) 9,600 9,600 9,600
Yankee Gas 1.2% System Money Pool 66,000 66,000 66,000
Norconn 1.2% System Money Pool 300 300 300
YEFSCO 1.2% System Money Pool 3,200 3,200 3,200
NGS 1.2% System Money Pool 13,500 13,500 13,500
7.25% Payable Upon Demand 5,000 5,000 5,000
---------- ---------- ----------
18,500 18,500 18,500
---------- ---------- ----------
Woods Electrical Company 7.25% Payable Upon Demand 4,450 4,450 4,450
Woods Network Services 7.25% Payable Upon Demand 4,150 4,150 4,150
Select Energy 1.2% System Money Pool 168,200 168,200 168,200
SENY Variable Rate, Payable Upon Demand (a) 20,699 20,699 20,699
SESI 1.2% System Money Pool 6,450 6,450 6,450
The Quinnehtuk Company 1.2% System Money Pool 4,000 4,000 4,000
RRR 1.2% System Money Pool 27,650 27,650 27,650
7.25% Payable Upon Demand 5,000 5,000 5,000
---------- ---------- ----------
32,650 32,650 32,650
---------- ---------- ----------
(a) Interest rate is based on the 3-month Eurodollar plus applicable
margin. The interest rate at December 31, 2002 was 2.23 percent.
ITEM 2. ACQUISITIONS OR SALES OF UTILITY ASSETS
On November 1, 2002, CL&P and NAEC consummated the sale of their 40.04 percent
combined ownership interest in Seabrook Station (Seabrook) to a subsidiary of
FPL Group, Inc. NU received approximately $367 million of total cash proceeds
from the sale of Seabrook. The sale was exempt from SEC approval under Section
3(C)(B) of the Public Utility Holding Company Act of 1935.
In November 2002, Yankee Gas sold its Bethel Service Building for total
consideration of $3.4 million.
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, 2002, NU had $9.9 million of such
guarantees outstanding, which was the highest amount outstanding during 2002.
In addition, information relating to the following issuances has been filed on
Form U-6B-2 in accordance with Rule 52:
1. On September 9, 2002, The Connecticut Light and Power Company, the Bank
of New York and certain participating banks therein named amended the
Standby Bond Purchase Agreement dated October 24, 2000, to extend its
expiration date to October 21, 2003. Form U-6B-2 for this transaction
was filed on September 11, 2002.
ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES (1)
Amounts Acquired
----------------------------------------
No. of
Shares or
Name of Issuer and Title of Issue Principal Amount Consideration
--------------------------------- ---------------- -------------
Select Energy Services, Inc.
Other Notes/Agreements -
8.23% ABB Energy Capital $ 6,752,769 $ 6,752,769
9.24% ABB Energy Capital 876,204 876,204
6.25% BFL Series 2002A 12,631,000 12,631,000
7.69% Hannie Mae, LLC 24,297,192 24,297,192
7.37% Hannie Mae, LLC 3,090,846 3,090,846
------------- -------------
$ 47,648,011 $ 47,648,011
============== ==============
NU Parent
Other Notes/Agreements -
7.25% Amortizing Note $263,000,000 $263,000,000
============== ==============
9
ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES (1)
(CONTINUED)
Amounts Retired/Debt Repayment
------------------------------
No. of
Shares or
Name of Issuer and Title of Issue Principal Amount Consideration
--------------------------------- ---------------- -------------
Northeast Generation Company
Other Notes/Agreements -
4.998% Series A $ 24,000,000 $ 24,000,000
============== ==============
NU Parent
Other Notes/Agreements -
8.58% Series A Note $ 17,000,000 $ 17,000,000
8.38% Series B Note 6,000,000 6,000,000
Variable Rate Note 263,000,000 263,000,000
-------------- --------------
$286,000,000 $286,000,000
============== ==============
The Rocky River Realty Company
Other Notes/Agreements -
7.875% Installment Note (2) $ 1,468,000 $ 1,468,000
6.620% Mortgage Note 90,249 90,249
8.810% Series A Note (3) 1,177,246 1,177,246
-------------- --------------
$ 2,735,495 $ 2,735,495
============== ==============
HEC/Tobyhanna Energy Project, Inc.
Other Notes/Agreements -
7.625% First Union Bank/John Hancock $ 988,000 $ 988,000
============== ==============
Yankee Energy System, Inc.
First Mortgage Bonds -
10.07% Series A-E $ 950,000 $ 950,000
============== ==============
Other Notes/Agreements
6.24% NorConn Properties,
Inc. - Series A-B $ 100,000 $ 100,000
============== ==============
(1) For acquisitions, redemptions or retirements of system securities, other
than preferred stock, all transactions exempt pursuant to Rule 42(b)(2)
or (4).
(2) Unsecured.
(3) Secured.
10
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
Mode 1 Communications, NEON Communications, Inc. Stock
Inc. (Telecommunications)
NU Enterprises, Inc. Acumentrics Corporation Stock
(Energy Related)
Yankee Energy BMC Energy LLC Note
System, Inc. (Energy Related)
11
ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES
(CONTINUED)
% 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 - - $ 14
(Parent) =========
11 Subsidiaries (2) - - $11,986
=========
Mode 1 Communications, 1,551,000 shares 7% $ 5,000
Inc. =========
NU Enterprises, Inc. 500,000 shares 5% $ 7,500
=======
Yankee Energy $4.7 million - $ 4,700
Systems, Inc. note =======
(1) Recorded at cost on owners' books. Partnership interests are accounted for
under the equity method of accounting.
(2) CL&P, WMECO, HWP, The Quinnehtuk Company, NUSCO, NU Parent, PSNH, Yankee
Energy System, NUEI, SESI and RRR.
12
ITEM 6. OFFICERS AND DIRECTORS
Part I. As of December 31, 2002
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 Womens 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
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).
13
NAMES OF SYSTEM COMPANIES WITH WHICH CONNECTED AS OF DECEMBER 31, 2002
NU NUSCO CL&P
Michael G. Morris CHB, P, CEO, T CH, P, CEO, D
Bruce D. Kenyon (1) PG PG
John H. Forsgren VC, EVP, CFO, T EVP, CFO, D
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 VP, S, GC VP, S, GC
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 (3)
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
Patricia A. Wood (2)
John C. Collins (1)(5)
Gerald Letendre (1)(6)
Jane E. Newman (1)(7)
James E. Byrne (1)(8)
Paul J. McDonald (1)(9)
Melinda M. Phelps (1)(10)
E. Edward Booker (11)
Eileen S. Kraus (1)(12)
John J. Rando (1)(13)
Patricia M. Worthy (1)(14)
Christopher T. Burt (15)
Michelle Moezzi (15)
Murry K. Staples (16)
Gregory C. Picklesimer (16)
14
HP&E HWP PSNH
Michael G. Morris P, D P, D C, D
Bruce D. Kenyon
John H. Forsgren 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
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
Patricia A. Wood
John C. Collins D
Gerald Letendre D
Jane E. Newman D
James E. Byrne
Paul J. McDonald
Melinda M. Phelps
E. Edward Booker
Eileen S. Kraus
John J. Rando
Patricia M. Worthy
Christopher T. Burt
Michelle Moezzi
Murry K. Staples
Gregory C. Picklesimer
15
WMECO Mode 1 PI
Michael G. Morris C, D P, CEO, D
Bruce D. Kenyon
John H. Forsgren 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
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
Patricia A. Wood CL
John C. Collins
Gerald Letendre
Jane E. Newman
James E. Byrne D
Paul J. McDonald D
Melinda M. Phelps D
E. Edward Booker
Eileen S. Kraus
John J. Rando
Patricia M. Worthy
Christopher T. Burt
Michelle Moezzi
Murry K. Staples
Gregory C. Picklesimer
16
Quinn. RRR CRC
Michael G. Morris
Bruce D. Kenyon
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
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 D
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
Patricia A. Wood CL
John C. Collins
Gerald Letendre
Jane E. Newman
James E. Byrne
Paul J. McDonald
Melinda M. Phelps
H. Edward Booker D
Eileen S. Kraus
John J. Rando
Patricia M. Worthy
Christopher T. Burt
Michelle Moezzi
Murry K. Staples
Gregory C. Picklesimer
17
Conn Steam Nutmeg Power EPI
Michael G. Morris
Bruce D. Kenyon
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
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
Patricia A. Wood
John C. Collins
Gerald Letendre
Jane E. Newman
James E. Byrne
Paul J. McDonald
Melinda M. Phelps
Eileen S. Kraus
John J. Rando
Patricia M. Worthy
H. Edward Booker
Christopher T. Burt
Michelle Moezzi
Murry K. Staples
Gregory C. Picklesimer
18
CL&P Cap. (17) YES YEFSCO
Michael G. Morris C, D C, D
Bruce D. Kenyon
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 VP, S, GC VP, S, GC
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
Patricia A. Wood
John C. Collins
Gerald Letendre
Jane E. Newman
James E. Byrne
Paul J. McDonald
Melinda M. Phelps
E. Edward Booker
Eileen S. Kraus D
John J. Rando D
Patricia M. Worthy D
Christopher T. Burt
Michelle Moezzi
Murry K. Staples
Gregory C. Picklesimer
19
YGSCO YESCO NORCONN
Michael G. Morris C, D C, D C, D
Bruce D. Kenyon
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 VP, S, GC VP, S, GC VP, S, GC
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
Patricia A. Wood
John C. Collins
Gerald Letendre
Jane E. Newman
James E. Byrne
Paul J. McDonald
Melinda M. Phelps
E. Edward Booker
Eileen S. Kraus
John J. Rando
Patricia M. Worthy
Christopher T. Burt
Michelle Moezzi
Murry K. Staples
Gregory C. Picklesimer
20
HOUSATONIC RMS FUNDING (18)
Michael G. Morris C, D
Bruce D. Kenyon
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 VP, S, GC
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
Patricia A. Wood
John C. Collins
Gerald Letendre
Jane E. Newman
James E. Byrne
Paul J. McDonald
Melinda M. Phelps
E. Edward Booker
Eileen S. Kraus
John J. Rando
Patricia M. Worthy
Christopher T. Burt D, MC
Michelle Moezzi D, MC
Murry K. Staples P, CEO, D
Gregory C. Picklesimer S, TRS
21
PSNH FUNDING (19) PSNH FUNDING 2(19) WMECO FUNDING (20)
Michael G. Morris
Bruce D. Kenyon
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
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
John P. Stack VP, TRS VP, TRS VP, TRS
Patricia A. Wood
John C. Collins
Gerald Letendre
Jane E. Newman
James E. Byrne
Paul J. McDonald
Melinda M. Phelps
E. Edward Booker
Eileen S. Kraus
John J. Rando
Patricia M. Worthy
Christopher T. Burt D, MC D, MC D, MC
Michelle Moezzi D, MC D, MC D, MC
Murry K. Staples
Gregory C. Picklesimer
22
NAEC NAESCO
Michael G. Morris D D
Bruce D. Kenyon P, CEO, D P, CEO, D
John H. Forsgren D
Cheryl W. Grise
Charles W. Shivery
Kerry J. Kuhlman
Gary A. Long
Leon J. Olivier
Dennis E. Welch
Christopher L. Beschler
David H. Boguslawski
Gregory B. Butler
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
Lisa J. Thibdaue
Roger C. Zaklukiewicz
Robert A. Bersak
O. Kay Comendul S S
Randy A. Shoop
Patricia A. Wood
John C. Collins
Gerald Letendre
Jane E. Newman
James E. Byrne
Paul J. McDonald
Melinda M. Phelps
E. Edward Booker
Eileen S. Kraus
John J. Rando
Patricia M. Worthy
Christopher T. Burt
Michelle Moezzi
Murry K. Staples
Gregory C. Picklesimer
23
COE SESI HEC/CJTS
Charles W. Shivery D
Bruce D. Kenyon
Dennis G. Morrissette (21)
William W. Schivley CHB, D P, D
James B. Redden (22) P, D
Armando J. Barone (23)
Joseph F. Bellefeuille (21)
Paul J. Bohonowicz (23)
Richard J. Cohen
Annette M. Durnack
Stephen J. Fabiani
Linda A. Jensen (22) VP, TRS, CL TRS, S, D
William J. Nadeau D
John J. Roman
Frank P. Sabatino VP, D
Jeffrey M. Warren (21)
Carol L. Carver (22)
Christopher Fogarty (21)
Frederic Lee Klein S
Dennis R. Brown (4)
Thomas M. Driscoll (24)
Michael A. Paolella (4)
Christopher T. Burt D
Alan J. Giantomaso (25) D
Michelle Moezzi D
Neil Petchers (26)
Barbara Casey (22)
Britta MacIntosh (22)
Scott Silver (26)
Richard M. Kacich
24
ERI/HEC (27) HTEP RFS
Charles W. Shivery CH, CEO, D CH, CEO, D
Bruce D. Kenyon
Dennis G. Morrissette P, D
William W. Schivley
James B. Redden P, D D
Armando J. Barone
Joseph F. Bellefeuille SVP
Paul J. Bohonowicz
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
Dennis R. Brown
Thomas M. Driscoll
Michael A. Paolella
Christopher T. Burt
Alan J. Giantomaso MC
Michelle Moezzi
Neil Petchers VC, MC
Barbara Casey S
Britta MacIntosh C, MC
Scott Silver MC
Richard M. Kacich
25
NEI NGC NGS
Charles W. Shivery P, CEO, D CH, D CH, D
Bruce D. Kenyon
Dennis G. Morrissette
William W. Schivley VP, D D
James B. Redden
Armando J. Barone
Joseph F. Bellefeuille
Paul J. Bohonowicz
Richard J. Cohen
Annette M. Durnack
Stephen J. Fabiani
Linda A. Jensen
William J. Nadeau VP VP, COO, D
John J. Roman
Frank P. Sabatino VP VP
Jeffrey M. Warren
Carol L. Carver
Christopher Fogarty
Frederic Lee Klein S S S
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
Richard M. Kacich
26
WEC WNS NNECO
Charles W. Shivery CH, D CH, D
Bruce D. Kenyon P, CEO, D
Dennis G. Morrissette
William W. Schivley
James B. Redden
Armando J. Barone
Joseph F. Bellefeuille
Paul J. Bohonowicz
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 S
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
Richard M. Kacich D
27
Select SENY SECI
Charles W. Shivery CH, D CH, D CHB, CEO, D
Bruce D. Kenyon
Dennis G. Morrissette PNH, D
William W. Schivley P, D P, D
James B. Redden P, D
Armando J. Barone VP
Joseph F. Bellefeuille SVP
Paul J. Bohonowicz VP
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 VP TR
Frank P. Sabatino SVP, D D
Jeffrey M. Warren VP
Carol L. Carver CL
Christopher Fogarty C
Frederic Lee Klein S S
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
Richard M. Kacich
28
ESB NGSM
Charles W. Shivery CH, D CH, D
Bruce D. Kenyon
Dennis G. Morrissette
William W. Schivley
James B. Redden
Armando J. Barone
Joseph F. Bellefeuille
Paul J. Bohonowicz
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
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
Richard M. Kacich
29
The principal business address of the individuals listed above is 107 Selden
Street, Berlin, Connecticut 06037, except as otherwise noted.
(1) Resigned as of the close of business on December 31, 2002.
(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) Mr. Collins' principal business address is: The Hitchcock Clinic, One
Medical Center Drive, Lebanon, New Hampshire 03756.
(6) Mr. Letendre's principal business address is: Diamond Casting & Machine
Co., Inc., P.O. Box 420, Route 130, Hollis, New Hampshire 03049.
(7) Ms. Newman's principal business address is: John F. Kennedy School of
Government, Harvard University, 79 JFK Street, Cambridge, Massachusetts
02138.
(8) Mr. Byrne's principal business address is: Finneran, Byrne &
Dreschler, L.L.P, Eastern Harbor Office Park, 50 Redfield Street,
Boston, Massachusetts 02122.
(9) Mr. McDonald's principal business address is: 2205 Boston Road, N-128,
Wilbraham, Massachusetts 01095.
(10) Ms. Phelps' principal business address is: Bulkley, Richardson and
Gelinas, LLP, 1500 Main Street, Suite 2700, P. O. Box 15507,
Springfield, Massachusetts 01115.
(11) Mr. Booker's principal business address is: AMACAR Group, 6525 Morrison
Boulevard, Suite 318, Charlotte, North Carolina 28211
(12) Ms. Kraus' principal business address is: 209 Tunxis Road, West
Hartford, Connecticut 06107.
(13) Mr. Rando's principal business address is: 165 Little Harbor Road,
P. O. Box 2011, New Castle, New Hampshire 03854.
(14) Ms. Worthy's principal business address is: Howard University School of
Law, 2900 Van Ness Street, N. W., Washington, D. C. 20008.
(15) Mr. Burt and Ms. Moezzi's principal business address is: Global
Securitization Services, LLC, 114 West 47th Street, Suite 1715, New
York, New York 10036.
(16) Principal business address is: R. M. Services, Inc., 222 Pitkin Street,
East Hartford, Connecticut 06108.
(17) CL&P Capital is a partnership in which CL&P serves as general partner.
(18) CLP Funding LLC is a Delaware limited liability company formed to issue
rate reduction bonds. CL&P is the sole member.
(19) 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.
(20) WMECO Funding LLC is a Delaware limited liability company formed to
issue rate reduction bonds. WMECO is the sole member.
(21) Principal business address is: Select Energy Contracting, Inc., 605
Front Street, Manchester, New Hampshire 03102.
(22) Principal business address is: Select Energy Services, Inc., 24 Prime
Parkway, Natick, Massachusetts 01760.
30
(23) Principal business address is: Select Energy Contracting, Inc., 148
Norton Street, P. O. Box 526, Milldale, CT 06467.
(24) Principal business address is: E. S. Boulos Company, Five Star
Industrial Park, Westbrook, ME 04092.
(25) Principal business address is: Select Energy Services, Inc., 811
Jericho Turnpike, Suite 101 W, Smithtown, NY 11787.
(26) Principal business address is: ERI Services, Inc., 350 Fairfield
Avenue, Bridgeport, Connecticut 06604.
(27) ERI/HEC EFA-Med, LLC is a Delaware limited liability company formed to
perform energy services work for the United States Navy. Select Energy
Services, Inc. owns 50% membership interest and ERI Services, Inc.,
owns 50% membership ownership interest.
KEY:
AT - Associate Trustee
AVP - Assistant Vice President
C - Controller
CAO - Chief Administrative Officer
CEO - Chief Executive Officer
CFO - Chief Financial Officer
CIO - Chief Information Officer
CH - Chairman
CHB - Chairman of the Board
CH(E) - Chairman of the Executive Committee
CL - Clerk
COMP - Comptroller
CNO - Chief Nuclear Officer
D - Director
DS - Director of Services
EVP - Executive Vice President
ED - Executive Director
GC - General Counsel
MC - Member of Management Committee
P - President
P - 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
EPI - Electric Power, Incorporated
ERI/HEC - ERI/HEC EFA-Med, LLC
HEC/CJTS - HEC/CJTS Energy Center LLC
HOUSATONIC - Housatonic Corporation
HWP - Holyoke Water Power Company
Mode 1 - Mode 1 Communications, Inc.
NAEC - North Atlantic Energy Corporation
NAESCO - North Atlantic Energy Service Corporation
31
NGC - Northeast Generation Company
NGS - Northeast Generation Services Company
NGSM - NGS Mechanical, Inc.
NNECO - Northeast Nuclear Energy Company
NORCONN - NorConn Properties, Inc.
NUEI - NU Enterprises, Inc.
NUSCO - Northeast Utilities Service Company
Nutmeg Power - The Nutmeg Power Company
PI - Properties, Inc.
PSNH - Public Service Company of New Hampshire
PSNH Funding - PSNH Funding LLC
PSNH Funding 2 - PSNH Funding LLC 2
Quinn. - The Quinnehtuk Company
RFS - Reeds Ferry Supply Co., Inc.
RMS - R. M. Services, Inc.
RRR - The Rocky River Realty Company
SECI - Select Energy Contracting, Inc.
Select - Select Energy, Inc.
SENY - Select Energy New York, Inc.
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
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 A
Texas
Michael G. Morris Webster Financial Director A, E, F
Corporation
Waterbury, CT
"A" designates Rule 70(b)(1), (2), (3) and (4);
"B" designates Rule 70(c)(1) and (2);
"C" designates Rule 70(d)(1), (2), (3) and (4);
"D" designates Rule 70(e)(1) and (2); and
"E" designates Rule 70(f)(1) and (2); and (2).
32
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 NU Trustee who was not an employee of NU or its subsidiaries was
compensated in 2002 and will be compensated in 2003 at an annual rate of
$20,000, and receives $1,000 for each meeting attended of the Board or its
Committees. A non-employee Trustee who participates in a meeting of the Board or
any of its Committees by conference telephone receives $1,000 ($675 in 2002) per
meeting. Also, a non-employee Trustee who is asked by either the Board of
Trustees or the Chairman of the Board to perform extra Board-related services in
the interest of the Northeast Utilities system may receive additional
compensation of $1,000 per day plus necessary expenses. The Chairs of the Audit,
Compensation, Corporate Affairs, Corporate Governance, and Finance Committees of
the NU Board of Trustees were compensated at an additional annual rate of $3,500
in 2002; this rate was raised to $10,000 and $5,000, respectively, for the
Chairs of the Audit Committee and Compensation Committee, effective in 2003,
while the rate for other Committee Chairs remains the same. In addition to the
above compensation, Dr. Kennan is paid at the annual rate of $30,000 for the
extra services performed as Lead Trustee. Prior to the dissolution of the
Nuclear Committee in December 2002, its Chair received an additional retainer at
the rate of $25,000 per year.
Trustees also received 1,000 common shares of Northeast Utilities in
2002, and 2,000 shares in 2003, subject to any deferral election in effect.
Under the terms of the Northeast Utilities Incentive Plan, each non-employee
Trustee is also eligible for stock-based grants. During 2002 each such Trustee
was granted non-qualified options under the Incentive Plan to purchase 2,500
common shares of Northeast Utilities. Receipt of shares acquired on exercise of
these options may be deferred pursuant to the terms of the Northeast Utilities
Deferred Compensation Plan for Executives. In March 2003, subject to any
deferral election in effect, each non-employee Trustee was granted 1,000
restricted common shares which vest in March 2004.
Prior to the beginning of each calendar year, each non-employee Trustee
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.
ii. Compensation of Subsidiary Directors
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
33
meeting. Also, committee chairs were compensated at an additional annual rate of
$1,500.
iii. Compensation of Executive Officers
SUMMARY COMPENSATION TABLE
The following tables present the cash and non-cash compensation
received by the Chief Executive Officer and the next four highest paid executive
officers of NU, CL&P, PSNH, and WMECO in accordance with rules of the SEC:
Annual Compensation Long-Term Compensation
---------------------------------------- -----------------------------------------------------
Awards Payouts
--------------------------- ------------------------
Restricted Securities Long-Term All
Stock Underlying Incentive Other
Other Annual Awards(s) Options/Stock Program Compen-
Name and Salary Compensation ($) Appreciation Payouts sation ($)
Principal Position Year ($) Bonus ($) ($) Note 1) (Note 2) Rights (#) ($) (Note 3)
------------------ ---- --- --------- ----------- -------- ---------- --- --------
Michael G. Morris 2002 915,385 558,000 209,883 - 630,600 - 27,462
Chairman of the
Board, President 2001 900,000 869,805 238,924 - 220,000 - 27,000
and Chief Executive
Officer of NU and 2000 830,770 1,200,000 200,869 - 140,000 - 27,326
Chairman of
PSNH and WMECO
John H. Forsgren 2002 556,154 165,000 - - 54,400 - 179,674
Executive Vice
President and 2001 524,423 200,000 - - 98,000 - 5,100
Chief Financial
Officer and Vice 2000 444,615 450,000 - - 36,000 - 5,100
Chairman of NU
Bruce D. Kenyon 2002 515,000 - - - 23,800 - 15,450
Former President -
Generation Group 2001 515,000 200,000 - - 34,000 - 15,450
of NU
(NU table only) 2000 504,616 450,000 - - 20,000 - 16,274
Cheryl W. Grise 2002 409,231 280,000 - - 39,600 - 180,523
President -
Utility Group of NU 2001 338,654 180,000 - - 76,000 - 10,119
and Chief Executive
Officer of CL&P, 2000 279,616 290,000 - - 23,000 - 8,795
PSNH and WMECO
Charles W. Shivery 2002 306,731 200,000 244,594 - 29,204 - 7,615
President -
Competitive 2001 - - - - - - -
Group of NU
(NU Table only) 2000 - - - - - - -
34
Gregory B. Butler 2002 206,154 70,000 - - 13,200 - 6,000
Vice President,
Secretary and 2001 189,269 70,000 - - 7,600 - 5,100
General Counsel of
NU and NUSCO 2000 174,462 105,000 - - 9,000 72,995 5,100
Leon J. Olivier 2002 303,908 138,000 - - 9,900 9,117
President and Chief
Operating Officer 2001 194,232 123,000 - 100,009 22,500 -
of CL&P
(CL&P Table Only) 2000 274,462 165,000 - - 13,000 9,261
Gary A. Long 2002 178,154 70,000 - - 8,100 5,345
President and Chief
Operating Officer 2001 171,846 55,000 - - 6,750 5,100
of PSNH
(PSNH Table Only) 2000 152,137 91,000 - - 6,500 4,564
Kerry J. Kuhlman 2002 173,093 62,000 - - 7,900 5,193
President and Chief
Operating Officer 2001 166,846 45,000 - - 6,200 5,005
of WMECO
(WMECO Table Only) 2000 161,539 90,000 - - 7,500 4,846
35
OPTION/SAR GRANTS IN LAST FISCAL YEAR
Individual Grants Grant Date Value
Number of % of Total
Securities Options/SARs
Underlying Granted to Exercise or Grant Date
Options/SARs Employees Base Price Expiration Present
Name Granted (#) in Fiscal Year ($/sh) Date Value ($)
Michael G. Morris 130,600 9.77 18.58 2/25/2012 797,966 (Note 4)
500,000 37.39 16.55 8/20/2012 1,985,000 (Note 5)
John H. Forsgren 54,400 4.07 18.58 2/25/2012 332,384 (Note 4)
Bruce D. Kenyon 23,800 1.78 18.58 2/25/2012 145,418 (Note 4)
Cheryl W. Grise 39,600 2.96 18.58 2/25/2012 241,956 (Note 4)
Charles W. Shivery 29,204 2.17 18.90 6/11/2012 168,339 (Note 6)
Gregory B. Butler 13,200 0.99 18.58 2/25/2012 80,652 (Note 4)
Leon J. Olivier 9,900 0.74 18.58 2/25/2012 60,489 (Note 4)
Gary A. Long 8,100 0.61 18.58 2/25/2012 49,491 (Note 4)
Kerry J. Kuhlman 7,900 0.59 18.58 2/25/2012 48,269 (Note 4)
AGGREGATED OPTIONS/SAR EXERCISES IN LAST
FISCAL YEAR AND FY-END OPTION/SAR VALUES
Shares With
Respect to Number of Securities Value of Unexercised
Which Underlying Unexercised In-the-Money
Options Were Value Options/SARs Options/SARs
Exercised Realized at Fiscal Year End (#) at Fiscal Year End ($)
Name (#) ($) Exercisable Unexercisable Exercisable Unexercisable
Michael G. Morris - - 849,591 823,935 2,794,204 -
John H. Forsgren 60,116 258,198 102,584 131,735 - -
Bruce D. Kenyon - - 66,705 53,135 4,837 -
Cheryl W. Grise - - 73,292 97,936 4,583 -
Charles W. Shivery - - - 29,024 - -
Gregory B. Butler - - 24,249 21,267 1,986 -
Leon J. Olivier - - 3,334 19,900 - -
Gary A. Long - - 13,282 14,768 891 -
Kerry J. Kuhlman - - 14,329 14,535 955 -
Notes to Summary Compensation and Option/SAR Tables:
1. Other annual compensation for Mr. Morris includes personal use of the
Company's airplane, having a cost to the Company of $180,886 in 2002,
$219,088 in 2001, and $173,357 in 2000. Other annual compensation for
Mr. Shivery includes $144,000 of relocation expenses, per his
employment agreement.
36
2. At December 31, 2002, the aggregate restricted stock holdings by the
individuals named in the table were 36,978 shares with a value of
$560,956. No restricted shares were awarded as incentive compensation
to these individuals in 2002; payment of 50 percent of the 2001 annual
bonus of each of Mr. Morris, Mr. Forsgren, and Mrs. Grise was made on
February 25, 2002 in the form of restricted shares vesting one-third on
February 25, 2003, February 25, 2004, and February 25, 2005. Dividends
on restricted stock are paid out.
3. "All Other Compensation" for 2002 consists of employer matching
contributions under the Northeast Utilities Service Company 401k Plan,
generally available to all eligible employees (each of Messrs. Morris,
Forsgren, Kenyon, and Butler and Mrs. Grise - $6,000, Mr. Long - $5,345
and Ms. Kuhlman - $5,193) and matching contributions under the Deferred
Compensation Plan for Executives (Mr. Morris - $21,462, Mr. Kenyon -
$9,450, Mrs. Grise - $6,277, Mr. Shivery - 7,615, and Mr. Olivier -
$9,117). For Mr. Forsgren and Mrs. Grise, it also includes vested
deferred compensation paid out on June 28, 2002 of $173,674 and
$168,246 respectively (See Employment Contracts and Termination of
Employment and Change in Control Arrangements, Below).
4. These options were granted on February 25, 2002 under the Northeast
Utilities Incentive Plan (Incentive Plan). All options granted vest
one-third on February 25, 2003, one-third on February 25, 2004 and
one-third on February 25, 2005. Valued using the Black-Scholes option
pricing model, discounted by 5.88% to reflect the risk of forfeiture,
with the following assumptions: Volatility: 24.33 percent (36 months of
monthly data); Risk-free rate: 5.18 percent; Dividend yield: 1.82
percent; Exercise date: February 25, 2012.
5. These options were granted on November 1, 2002 under the Incentive
Plan. All options granted vest on August 20, 2007. Valued using the
Black-Scholes option pricing model, discounted by 14.13% to reflect the
risk of forfeiture, with the following assumptions: Volatility: 23.09
percent (36 months of monthly data); Risk-free rate: 4.47 percent;
Dividend yield: 2.44 percent; Exercise date: August 20, 2012.
6. These options were granted on June 11, 2002 under the Incentive Plan.
All options granted vest one-third on June 11, 2003, one-third on June
11, 2004 and one-third on June 11, 2005. Valued using the Black-Scholes
option pricing model, discounted by 5.88% to reflect the risk of
forfeiture, with the following assumptions: Volatility: 22.53 percent
(36 months of monthly data); Risk-free rate: 5.30 percent; Dividend
yield: 2.02 percent; Exercise date: June 11, 2012.
37
LONG-TERM INCENTIVE PLANS - AWARDS IN LAST FISCAL YEAR
Grants of performance units were made during 2002 under the 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 average annual rate of growth in net earnings over the
performance period. Grants to the executive officers named in the Summary
Compensation Table were as follows:
Estimated Future Payouts
Under Non-Stock Price-Based Plans
---------------------------------
(a) (b) (c) (d) (e) (f)
Number of Performance
Shares, or Other
Units or Period Until
Other Maturation
Rights Or Payout Threshold Target Maximum
Name (#) ($) ($) ($)
---- ----------- ------------ ------------ ------------ ------------
Michael G. Morris 9,900 1/1/2002-12/31/2004 396,000 990,000 1,386,000
John H. Forsgren 4,125 1/1/2002-12/31/2004 165,000 412,500 577,500
Bruce D. Kenyon 1,803 1/1/2002-12/31/2004 72,120 180,300 252,420
Cheryl W. Grise 3,000 1/1/2002-12/31/2004 120,000 300,000 420,000
Charles W. Shivery 2,200 1/1/2002-12/31/2004 88,000 220,000 308,000
Gregory B. Butler 1,000 1/1/2002-12/31/2004 40,000 100,000 140,000
Leon J. Olivier 750 1/1/2002-12/31/2004 30,000 75,000 105,000
Gary A. Long 616 1/1/2002-12/31/2004 24,640 61,600 86,240
Kerry J. Kuhlman 599 1/1/2002-12/31/2004 23,960 59,900 83,860
b. Their interest in the securities of system companies including
options or other rights to acquire securities:
The following table provides information as of March 14, 2003 (except
for Mr. Kenyon, whose ownership is shown as of December 31, 2002, the date his
employment with the Company ended), as to the beneficial ownership of the equity
securities of NU by each Trustee, each of the five highest paid executive
officers of NU, CL&P, PSNH, and WMECO, Directors of CL&P, PSNH, and WMECO, all
Trustees and executive officers of NU as a group, and all Directors and
executive officers of each of CL&P, PSNH and WMECO as a group. Unless otherwise
noted, each Trustee, Director and executive officer has sole voting and
investment power with respect to the listed shares. No equity securities of
other system companies are owned by Trustees, Directors or executive officers.
Amount and
Nature of
Title of Beneficial Percent of
Class Name Ownership Class (1)
NU Common David H. Boguslawski 34,373 (1) (2)
NU Common Richard H. Booth 6,000 (3) (2)
NU Common Gregory B. Butler 49,018 (4) (2)
NU Common Cotton Mather Cleveland 20,232 (5) (2)
NU Common Sanford Cloud, Jr. 20,886 (6) (2)
NU Common James F. Cordes 11,500 (3) (2)
NU Common E. Gail de Planque 20,452 (5) (2)
NU Common John H. Forsgren 187,567 (7) (2)
NU Common John G. Graham 0 (2)
NU Common Cheryl W. Grise 128,135 (8) (2)
NU Common Elizabeth T. Kennan 19,755 (9) (2)
38
NU Common Bruce D. Kenyon 155,773 (10) (2)
NU Common Kerry J. Kuhlman 32,555 (11) (2)
NU Common Gary A. Long 30,871 (12) (2)
NU Common Michael G. Morris 1,067,100 (13) (2)
NU Common Robert E. Patricelli 27,522 (5) (2)
NU Common Leon J. Olivier 16,683 (14) (2)
NU Common Charles W. Shivery 17,148 (15) (2)
NU Common John W. Swope 22,361 (9) (2)
Amount beneficially owned by Trustees or Directors and Executive Officers as a
group:
Amount and Nature of Percent of
Company Number of Persons Beneficial Ownership Outstanding
NU 15 1,753,449 (16) 1.34%
CL&P 6 1,482,876 (2)
PSNH 6 1,497,064 (2)
WMECO 6 1,498,748 (2)
(1) Includes 23,704 shares that could be acquired by Mr. Boguslawski
pursuant to currently exercisable options and 5,304 restricted shares,
as to which Mr. Boguslawski has sole voting and no dispositive power.
(2) As of March 14, 2003, there were 130,383,840 common shares of NU
outstanding. The percentage of such shares beneficially owned by any
Trustee of NU, Director of CL&P, PSNH, or WMECO or Executive Officer of
NU, CL&P, PSNH, or WMECO and by all of the Directors and Executive
Officers of each of CL&P, PSNH and WMECO does not exceed one percent.
(3) Includes 5,000 shares that could be acquired by the beneficial owner
pursuant to currently exercisable options.
(4) Includes 34,182 shares that could be acquired by Mr. Butler pursuant to
currently exercisable options and 7,779 restricted 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 restricted 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 restricted shares as to which
Mr. Cloud has sole voting and no dispositive power.
(7) Includes 143,718 shares that could be acquired by Mr. Forsgren pursuant
to currently exercisable options and 39,631 restricted shares as to
which Mr. Forsgren has sole voting and no dispositive power.
39
(8) Includes 73,292 shares that could be acquired by Mrs. Grise pursuant to
currently exercisable options, 36,072 restricted as to which Mrs. Grise
has sole voting and no dispositive power, and 265 shares held by Mrs.
Grise's husband as custodian for her children, with whom she shares
voting and dispositive power.
(9) Includes 12,500 shares that could be acquired by the beneficial owner
pursuant to currently exercisable options.
(10) Includes 88,656 shares that could be acquired by Mr. Kenyon pursuant to
currently exercisable options.
(11) Includes 21,529 shares that could be acquired by Ms. Kuhlman pursuant
to currently exercisable options and 4,420 restricted shares, as to
which Ms. Kuhlman has sole voting and no dispositive power.
(12) Includes 20,399 shares that could be acquired by Mr. Long pursuant to
currently exercisable options and 4,597 restricted shares, as to which
Mr. Long has sole voting and no dispositive power.
(13) Includes 979,792 shares that could be acquired by Mr. Morris pursuant
to currently exercisable options and 31,732 restricted shares as to
which Mr. Morris has sole voting and no dispositive power.
(14) Includes 6,634 shares that could be acquired by Mr. Olivier pursuant to
currently exercisable options and 5,552 restricted shares, as to which
Mr. Olivier has sole voting and no dispositive power.
(15) Includes 89 shares held in an ESOP, as to which Mr. Shivery has sole
voting but no dispositive power and 15,559 restricted shares as to
which Mr. Shivery has sole voting and no dispositive power.
(16) Includes 34,182 shares that could be acquired by an executive officer
other than those named in the table above pursuant to currently
exercisable options and 7,779 restricted shares as to which such
officer has sole voting and no dispositive power.
40
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 equity
exercise of outstanding compensation plans
outstanding options, options, warrants (excluding securities
Plan Category warrants and rights and rights reflected in column (a))
----------------------------------------------------------------------------------------------------------------------
(a) (b) (c)
----------------------------------------------------------------------------------------------------------------------
Equity compensation plans
approved by security holders 3,956,137 $16.73 See Note 1
----------------------------------------------------------------------------------------------------------------------
Equity compensation plans
not approved by security
holders 500,000 $9.625 None
----------------------------------------------------------------------------------------------------------------------
Total 4,456,137 $15.93 See Note 1
----------------------------------------------------------------------------------------------------------------------
Notes to table:
1. Under the Incentive Plan, 3,873,851 shares were available for issuance as of
December 31, 2002. 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, 7,438,295 additional shares are available for
issuance. Each such plan expires in 2008.
Section 16(a) Beneficial Ownership Reporting Compliance
Section 16(a) of the Securities Exchange Act of 1934 requires Trustees
and certain officers of NU and persons who beneficially own more than 10 percent
of the outstanding common shares of NU to file reports of ownership and changes
in ownership with the SEC and the New York Stock Exchange. Based on review of
copies of such forms furnished to NU, or written representations that no Form 5
was required, NU believes that for the year ended December 31, 2002, all such
reporting requirements were complied with in a timely manner.
c. Their contracts and transactions with system companies:
EMPLOYMENT CONTRACTS AND TERMINATION OF EMPLOYMENT ARRANGEMENTS
Northeast Utilities has entered into an employment agreement with Mr.
Morris and NUSCO has entered into employment agreements with Messrs. Forsgren,
Kenyon and Shivery and Mrs. Grise; each of the other named executive officers
participates in the Special Severance Program for Officers of Northeast
Utilities Companies. The agreements (except for Mr. Shivery's) and the Special
Severance Program are also binding on Northeast Utilities and on each
majority-owned subsidiary of Northeast Utilities.
41
Each agreement obligates the officer to perform such duties as may be
directed by the NUSCO Board of Directors or the Northeast Utilities Board of
Trustees, protect the Company's confidential information, and refrain, while
employed by the Company and for a period of time thereafter, from competing with
the Company in a specified geographic area. Each agreement provides that the
officer's base salary will not be reduced below certain levels without the
consent of the officer, and that the officer will participate in specified
benefits under the Supplemental Executive Retirement Plan or other supplemental
retirement programs (see Pension Benefits, below) and/or in certain executive
incentive programs at specified incentive opportunity levels.
Each agreement provides for a specified employment term and for automatic
one-year extensions of the employment term unless at least six months' notice of
non-renewal is given by either party. The employment term may also be ended by
the Company for "cause", as defined, at any time (in which case certain
supplemental retirement benefits may be forfeited), or by the officer on thirty
days' prior written notice for any reason. Absent "cause", the Company may
remove the officer from his or her position on sixty days' prior written notice,
but in the event the officer is so removed and signs a release of all claims
against the Company, the officer will receive one or two years' base salary and
annual incentive payments, specified employee welfare and pension benefits, and
vesting of stock appreciation rights, options and restricted stock.
Under the terms of the agreements and the Special Severance Program, upon
any termination of employment following a change of control, as defined, between
(a) the earlier of the date shareholders approve a change of control transaction
or a change of control transaction occurs and (b) the earlier of the date, if
any, on which the Board of Trustees abandons the transaction or the date two
years following the change of control, if the officer signs a release of all
claims against the Company, the officer will be entitled to certain payments
including a multiple (not to exceed three) of annual base salary, annual
incentive payments, specified employee welfare and pension benefits, and vesting
of specified long-term incentive compensation. 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,
Forsgren, Kenyon and Shivery provide for a specified salary, cash, restricted
stock and/or stock options upon employment, special incentive programs and/or
special retirement benefits. See Pension Benefits, below, for further
description of these provisions. 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. Butler,
Boguslawski, and Olivier provide for specified salary, cash, restricted stock,
stock options or other benefits upon employment.
42
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 2002.
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 pages show the estimated annual retirement
benefits payable to an executive officer of Northeast Utilities upon retirement,
assuming that retirement occurs at age 65 and that the officer is at that time
not only eligible for a pension benefit under the Northeast Utilities Service
Company Retirement Plan (the Retirement Plan) but also eligible for either the
make-whole benefit or the make-whole benefit plus the target benefit under the
Supplemental Executive Retirement Plan for Officers of Northeast Utilities
System Companies (the Supplemental Plan). The Supplemental Plan is a
non-qualified pension plan providing supplemental retirement income to system
officers. The make-whole benefit under the Supplemental Plan, available to all
officers, makes up for benefits lost through application of certain tax code
limitations on the benefits that may be provided under the Retirement Plan, and
includes as "compensation" awards under the executive incentive plans and
deferred compensation (as earned). The target benefit further supplements these
benefits and is available to officers at the Senior Vice President level and
higher who are selected by the Board of Trustees to participate in the target
benefit and who remain in the employ of Northeast Utilities companies until at
least age 60 (unless the Board of Trustees sets an earlier age).
Mr. Morris's Employment Agreement provides that upon retirement (or
upon disability or termination or following a change of control, as defined) he
will be entitled to receive a special retirement benefit calculated by applying
the benefit formula of the CMS Energy/Consumers Energy Company (CMS)
Supplemental Executive Retirement Plan to all compensation earned from the
Company and to all service rendered to the Company and CMS. If Mr. Morris
retires after age 60, his special retirement benefit will be no less than that
which he would have received had he been eligible for a make-whole benefit plus
a target benefit under the Supplemental Plan.
Mr. Forsgren, Mrs. Grise and Mr. Shivery are currently eligible for a
make-whole plus a target benefit. Messrs. Butler, 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 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)
43
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. Kenyon's Employment Agreement provided for specially calculated
retirement benefits, based on his previous arrangement with South Carolina
Electric and Gas, which supplement his make-whole benefit under the Supplemental
Plan. In addition, because Mr. Kenyon retired at the end of 2002 with at least
three years of service with the Company, he received two extra years of service
for purpose of his special retirement benefit. Because he voluntarily terminated
employment after achieving three years of service, following a "substantial
change in responsibilities resulting from a material change in the business of
Northeast Utilities", the termination of the Company's responsibility to operate
Seabrook Station, he received an additional year of service for the purpose of
his special retirement benefit. Because he retired with at least three years of
service with the Company, he received a lump sum payment of $500,000.
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.
44
ANNUAL BENEFIT FOR OFFICERS ELIGIBLE FOR MAKE-WHOLE BENEFIT
Final Years of Credited Service
Average
Compensation
15 20 25 30 35
$ 200,000 $ 43,521 $ 58,028 $ 72,535 $ 87,042 $101,549
$ 250,000 $ 54,771 $ 73,028 $ 91,285 $109,542 $127,799
$ 300,000 $ 66,021 $ 88,028 $110,035 $132,042 $154,049
$ 350,000 $ 77,271 $103,028 $128,785 $154,542 $180,299
$ 400,000 $ 88,521 $118,028 $147,535 $177,042 $206,549
$ 450,000 $ 99,771 $133,028 $166,285 $199,542 $232,799
$ 500,000 $111,021 $148,028 $185,035 $222,042 $259,049
$ 600,000 $133,521 $178,028 $222,535 $267,042 $311,549
$ 700,000 $156,021 $208,028 $260,035 $312,042 $364,049
$ 800,000 $178,521 $238,028 $297,535 $357,042 $416,549
$ 900,000 $201,021 $268,028 $335,035 $402,042 $469,049
$1,000,000 $223,521 $298,028 $372,535 $447,042 $521,549
$1,100,000 $246,021 $328,028 $410,035 $492,042 $574,049
$1,200,000 $268,521 $358,028 $447,535 $537,042 $626,549
ANNUAL BENEFIT FOR OFFICERS ELIGIBLE FOR
MAKE-WHOLE PLUS TARGET BENEFIT
Final Average Years of Credited Service
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
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
45
annual salary and bonus shown in the Summary Compensation Table and, for
officers hired before November 1, 2001, an amount that represents the annual
value of long term incentive compensation. 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 2002. The compensation covered by the Supplemental Plan in 2002 for Mr.
Forsgren, Mr. Kenyon, Mrs. Grise, Mr. Shivery, Mr. Butler, Mr. Olivier, Mr.
Long, and Mrs. Kuhlman was $933,084, $622,782, $826,155, $506,731, $307,699,
$484,360, $270,840, and $258,191, respectively.
As of December 31, 2002, the executive officers named in the Summary
Compensation Table had approximately the following years of credited service for
purposes of the Supplemental Plan: Mr. Kenyon - 8, Mr. Forsgren - 6, Mrs. Grise
- 22, Mr. Shivery - 0, Mr. Butler - 6, Mr. Olivier - 4, Mr. Long - 27, and Mrs.
Kuhlman - 22. Mr. Morris had 24 years of service for purpose of his special
retirement benefit. In addition, Mr. Forsgren had 12 years of service for
purposes of his supplemental pension benefit and would have 25 years of service
for such purpose if he were to retire at age 65.
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.
46
ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS
1. There were no expenditures, disbursements or payments made during 2002
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 2002
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)
Engineering and
Construction Services NGS NGC $25.9 2000
Engineering and
Construction Services NGS HWP $11.4 2000
Engineering and
Construction Services NGS SESI $ 1.8 2002
These contracts were all in place at December 31, 2002.
PART II:
See Item 6, Part III(c).
PART III:
None to be reported.
47
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 1,291.0 MW of generating assets in
New England which was acquired in March 2000, as a result of the
auctions by NGC's affiliates, CL&P and WMECO in their electric
restructuring activities. The table below lists these generating assets:
Capacity
Asset Location Type (MW)
----- -------- ---- --------
Northfield Mountain Erving, MA Pumped Storage 1,080.0
Cabot Montague, MA Conventional Hydro 55.8
Turners Falls Montague, MA Conventional Hydro 6.4
Falls Village Falls Village, CT Conventional Hydro 11.1
Bulls Bridge New Milford, CT Conventional Hydro 8.4
Rocky River New Milford, CT Conventional Hydro/
Pumped Storage 29.0
Shepaug Southbury, CT Conventional Hydro 42.6
Stevenson Monroe, CT Conventional Hydro 28.9
Robertsville Colebrook, CT Conventional Hydro 0.6
Bantam Litchfield, CT Conventional Hydro 0.4
Scotland Windham, CT Conventional Hydro 2.2
Tunnel Preston, CT Conventional Hydro 2.1
Taftville Norwich, CT Conventional Hydro 2.0
Tunnel ICU Preston, CT Internal Combustion
Unit 21.5
---------
Total 1,291.0
=========
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
48
(b) Capital Investment in Company by NU, Direct or Indirect
1. Type: Capital contribution
2. Amount: $469.5 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 12/31/02:
Ratio of debt to common equity as of 12/31/02: 0.948
Ratio of debt to earnings as of 12/31/02: 13.682
(d) Service, Sales or Construction Contracts:
NGC has a Power Sales and Purchase Agreement, dated December 27, 1999,
with Select Energy, Inc. (Select), an affiliate of NGC. The term of this
agreement is six years (through December 31, 2005) with an option for
renewal. The agreement sets forth the terms and conditions by which Select
purchases the capacity, associated energy, and ancillary services from the
NGC assets. During 2002, Select paid NGC $130.1 million under this contract
(excluding business interruption insurance proceeds of $1.4 million).
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 2002, NGC paid NGS $25.9 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 2002, NGC paid NUSCO $1.1 million under this contract.
49
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 12/31/02:
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 12/31/02: 0.59
50
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, 2002
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
51
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
Charter Oak Energy Incorporated and Subsidiaries:
Consolidating Balance Sheet F-83--F-84
Consolidating Statement of Income F-85
Consolidating Statement of Retained Earnings F-86
Consolidating Statement of Capital Surplus, Paid In F-86
Consolidating Statement of Cash Flows F-87
Notes to Financial Statements F-88
Exhibits E-1--E-27
52
THIS PAGE INTENTIONALLY LEFT BLANK
53
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, 2002, of our report dated January 28, 2003 (February 27, 2003
as to Note 8A) relating to the consolidated financial statements of the Company
as of and for the years ended December 31, 2002 and 2001 incorporated by
reference in the Annual Report on Form 10-K of Northeast Utilities for the year
ended December 31, 2002 (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 Financial Instruments and Hedging Activities," as amended, effective
January 1, 2001, and its adoption in 2002 of Emerging Issues Task Force Issue
02-3 "Accounting for Contracts Involved in Energy Trading and Risk Management
Activities" and SFAS No. 142, "Goodwill and Other Intangible Assets" and which
report also includes an explanatory paragraph relating to the application of
procedures relating to certain disclosures of financial statement amounts
related to the 2000 financial statements that were audited by other auditors who
have ceased operations and for which we have expressed no opinion or other form
of assurance other than with respect to such disclosures).
April 25, 2003
Hartford, CT
/S/ DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
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,
2002, of our report dated January 28, 2003 (February 27, 2003 as to Note 6A)
relating to the consolidated financial statements of The Connecticut Light and
Power Company as of and for the years ended December 31, 2002 and 2001
incorporated by reference in the Annual Report on Form 10-K of The Connecticut
Light and Power Company for the year ended December 31, 2002.
April 25, 2003
Hartford, CT
/S/ DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
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,
2002, of our report dated January 28, 2003 relating to the consolidated
financial statements of Public Service Company of New Hampshire as of and for
the year ended December 31, 2002 incorporated by reference in the Annual Report
on Form 10-K of Public Service Company of New Hampshire for the year ended
December 31, 2002.
April 25, 2003
Hartford, CT
/S/ DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
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,
2002, of our report dated January 28, 2003 relating to the consolidated
financial statements of Western Massachusetts Electric Company as of and for the
year ended December 31, 2002 incorporated by reference in the Annual Report on
Form 10-K of Western Massachusetts Electric Company for the year ended December
31, 2002.
April 25, 2003
Hartford, CT
/S/ DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
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 25, 2003
F-5
THIS PAGE INTENTIONALLY LEFT BLANK
F-6
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2002
(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)
------------- ------------- ------------- ------------- ------------- ------------
ASSETS
------
Current Assets:
Cash and cash equivalents $ 625 $ 159 $ 5,319 $ 123 $ - $ 80
Investments in securitizable assets - 178,908 - - - -
Receivables, net 551 88,001 68,204 42,203 36 66
Accounts receivable from affiliated
companies 2,620 51,060 9,667 6,369 - 3,465
Taxes receivable from affiliated companies - - - - - 879
Unbilled revenues - 5,801 32,004 8,944 - -
Notes receivable from affiliated companies 289,100 1,900 23,000 - 42,400 2,100
Fuel, materials and supplies,
at average cost - 32,379 49,182 1,821 - 7,361
Special deposits - - - - - -
Derivative assets - - - - - -
Prepayments and other 73 19,407 10,032 1,470 - 170
------------- ------------ ------------- ------------- ------------- -------------
292,969 377,615 197,408 60,930 42,436 14,121
------------- ------------ ------------- ------------- ------------- -------------
Property, Plant and Equipment:
Electric utility - 3,139,128 1,431,710 590,153 - -
Gas utility - - - - - -
Competitive energy - - - - - 36,728
Other - - 6,195 - - -
------------- ------------ ------------- ------------- ------------- -------------
- 3,139,128 1,437,905 590,153 - 36,728
Less: Accumulated depreciation - 1,113,991 715,736 195,804 - 33,507
------------- ------------ ------------- ------------- ------------- -------------
- 2,025,137 722,169 394,349 - 3,221
Construction work in progress - 153,556 50,547 11,860 - 2,042
------------- ------------ ------------- ------------- ------------- -------------
- 2,178,693 772,716 406,209 - 5,263
------------- ------------ ------------- ------------- ------------- -------------
Deferred Debits and Other Assets:
Regulatory assets - 1,702,677 859,871 283,702 - 717
Deferred accumulated income taxes - - - - - -
Goodwill and other purchased intangible
assets, net - - - - - -
Prepaid pension - 276,173 - 67,516 - 2,515
Investments in subsidiary companies,
at equity 2,322,902 - - - - -
Other 18,159 96,925 92,280 18,304 11,471 2,060
------------- ------------ ------------- ------------- ------------- -------------
2,341,061 2,075,775 952,151 369,522 11,471 5,292
------------- ------------ ------------- ------------- ------------- -------------
Total Assets $ 2,634,030 $4,632,083 $ 1,922,275 $ 836,661 $ 53,907 $ 24,676
============= ============ ============= ============= ============= =============
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, 2002
(Thousands of Dollars)
Northeast Northeast
Utilities Nuclear North Atlantic The The Rocky
Service Energy Energy Service Quinnehtuk River Realty
Company Company Corporation Company Company
-------------- -------------- -------------- --------------- --------------
ASSETS
------
Current Assets:
Cash and cash equivalents $ 450 $ 54 $ 12,630 $ 83 $ -
Investments in securitizable assets - - - - -
Receivables, net 38,355 727 14,865 - 36
Accounts receivable from affiliated
companies 16,470 - - - 435
Taxes receivable from affiliated companies 9,845 - - - -
Unbilled revenues - - - - -
Notes receivable from affiliated companies 375,200 52,300 - - -
Fuel, materials and supplies,
at average cost 151 - 74 - -
Special deposits - - - - -
Derivative assets - - - - -
Prepayments and other 2,885 - 1,630 - 656
-------------- -------------- -------------- --------------- --------------
443,356 53,081 29,199 83 1,127
-------------- -------------- -------------- --------------- --------------
Property, Plant and Equipment:
Electric utility - - - - -
Gas utility - - - - -
Competitive energy - - - - -
Other 102,340 - - 1,639 94,940
-------------- -------------- -------------- --------------- --------------
102,340 - - 1,639 94,940
Less: Accumulated depreciation 77,139 - - 1,266 39,659
-------------- -------------- -------------- --------------- --------------
25,201 - - 373 55,281
Construction work in progress 11,978 - - - 6,678
-------------- -------------- -------------- --------------- --------------
37,179 - - 373 61,959
-------------- -------------- -------------- --------------- --------------
Deferred Debits and Other Assets:
Regulatory assets - - - - -
Deferred accumulated income taxes 4,925 28,354 5,256 - -
Goodwill and other purchased intangible
assets, net - - - - -
Prepaid pension 34,195 - - - -
Investments in subsidiary companies,
at equity - - - - -
Other 44,173 66 6,421 1,146 1,950
-------------- -------------- -------------- --------------- --------------
83,293 28,420 11,677 1,146 1,950
-------------- -------------- -------------- --------------- --------------
Total Assets $ 563,828 $ 81,501 $ 40,876 $ 1,602 $ 65,036
============== ============== ============== =============== ==============
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2002
(Thousands of Dollars)
NU
Yankee Energy Charter Oak Enterprises,
Systems, Inc. Energy, Inc. Inc.
(consolidated) (consolidated) (consolidated)
(b) (b) (b) Eliminations Consolidated
-------------- -------------- -------------- --------------- --------------
Current Assets:
Cash and cash equivalents $ 642 $ 273 $ 64,956 $ - $ 85,393
Investments in securitizable assets - - - - 178,908
Receivables, net 51,119 - 462,926 - 767,089
Accounts receivable from affiliated
companies 5,639 - 115,422 211,146 -
Taxes receivable from affiliated companies - - - 10,723 -
Unbilled revenues 43,001 - 36,487 - 126,236
Notes receivable from affiliated companies - - 12,300 798,300 -
Fuel, materials and supplies,
at average cost 16,702 - 2,870 (9,312) 119,853
Special deposits - - 2,455 - 2,455
Derivative assets 2,252 - 128,676 - 130,929
Prepayments and other 4,480 - 80,681 11,222 110,261
-------------- -------------- -------------- --------------- --------------
123,835 273 906,773 1,022,079 1,521,124
-------------- -------------- -------------- --------------- --------------
Property, Plant and Equipment:
Electric utility - 40 - 19,145 5,141,887
Gas utility 679,055 - - - 679,055
Competitive energy - - 829,779 213 866,294
Other - - - - 205,115
-------------- -------------- -------------- --------------- --------------
679,055 40 829,779 19,358 6,892,351
Less: Accumulated depreciation 281,771 40 36,608 10,974 2,484,549
-------------- -------------- -------------- --------------- --------------
397,284 - 793,171 8,384 4,407,802
Construction work in progress 58,011 - 25,677 (217) 320,567
-------------- -------------- -------------- --------------- --------------
455,295 - 818,848 8,167 4,728,369
-------------- -------------- -------------- --------------- --------------
Deferred Debits and Other Assets:
Regulatory assets 54,722 - - (8,340) 2,910,029
Deferred accumulated income taxes - 80 - 38,615 -
Goodwill and other purchased intangible
assets, net 287,591 - 58,276 - 345,867
Prepaid pension 43,330 - 2,810 97,648 328,890
Investments in subsidiary companies, - - - 2,322,902 -
at equity 19,698 - 174,949 54,267 433,338
-------------- -------------- -------------- --------------- --------------
Other 405,341 80 236,035 2,505,092 4,018,124
-------------- -------------- -------------- --------------- --------------
Total Assets $ 984,471 $ 353 $ 1,961,656 $ 3,535,338 $ 10,267,617
============== ============== ============== =============== ==============
F-8
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2002
(Thousands of Dollars)
Public
The Service Western
Connecticut Company Massachusetts Holyoke
Light and of New Electric North Water Power
Northeast Power Company 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 $ 49,000 $ - $ - $ 7,000 $ - $ -
Notes payable to affiliated companies - - - 85,900 - -
Long-term debt - current portion 23,000 - - - - -
Accounts payable 2,285 174,890 54,588 17,730 10,966 1,846
Accounts payable to affiliated companies 290 117,904 4,008 6,233 10,579 1,512
Accrued taxes 2,460 34,350 65,317 4,334 10,850 162
Accrued interest 5,883 10,077 11,333 2,059 - -
Derivative liabilities - - - - - -
Other 363 48,495 38,229 8,005 6 34
------------- ------------- ------------- ------------- ------------- -------------
83,281 385,716 173,475 131,261 32,401 3,554
------------- ------------- ------------- ------------- ------------- -------------
Rate Reduction Bonds - 1,245,728 510,841 142,742 - -
------------- ------------- ------------- ------------- ------------- -------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes 6,087 756,461 359,910 222,065 - 1,685
Accumulated deferred investment
tax credits - 93,408 2,680 3,662 - -
Deferred contractual obligations - 234,537 56,165 63,767 - -
Accrued pension - - 37,933 - - -
Other 141 276,325 52,156 13,213 168 3,613
------------- ------------- ------------- ------------- ------------- -------------
6,228 1,360,731 508,844 302,707 168 5,298
------------- ------------- ------------- ------------- ------------- -------------
Capitalization:
Long-Term Debt 334,000 827,866 407,285 101,991 - -
------------- ------------- ------------- ------------- ------------- -------------
Preferred Stock - Nonredeemable - 116,200 - - - -
------------- ------------- ------------- ------------- ------------- -------------
Advances from Northeast Utilities - - - - - 9,600
------------- ------------- ------------- ------------- ------------- -------------
Common Stockholders' Equity:
Common shares 746,879 60,352 - 10,866 - 2,400
Capital surplus, paid in 1,108,338 327,299 126,937 69,712 1,000 5,969
Deferred contribution plan -
employee stock ownership plan (87,746) - - - - -
Retained earnings/accumulated deficit 765,611 308,554 194,998 77,476 20,338 (2,145)
Accumulated other comprehensive
income/(loss) 14,927 (363) (105) (94) - -
Treasury stock (337,488) - - - - -
------------- ------------- ------------- ------------- ------------- -------------
Common Stockholders' Equity 2,210,521 695,842 321,830 157,960 21,338 6,224
------------- ------------- ------------- ------------- ------------- -------------
Total Capitalization 2,544,521 1,639,908 729,115 259,951 21,338 15,824
------------- ------------- ------------- ------------- ------------- -------------
Total Liabilities and Capitalization $ 2,634,030 $ 4,632,083 $ 1,922,275 $ 836,661 $ 53,907 $ 24,676
============= ============= ============= ============= ============= =============
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, 2002
(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 375,200 - - 4,000 27,650
Long-term debt - current portion - - - - 2,294
Accounts payable 34,388 110 5,287 - 493
Accounts payable to affiliated companies 47,241 4,125 2,011 21 2,129
Accrued taxes - 799 5,123 133 211
Accrued interest - - - - 74
Derivative liabilities - - - - -
Other 14,293 5 8,629 - 1,310
-------------- -------------- -------------- --------------- --------------
471,122 5,039 21,050 4,154 34,161
-------------- -------------- -------------- --------------- --------------
Rate Reduction Bonds - - - - -
-------------- -------------- -------------- --------------- --------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes - - - 16 1,608
Accumulated deferred investment
tax credits - - - - -
Deferred contractual obligations - - - - -
Accrued pension - 49,440 10,275 - -
Other 92,705 10,806 9,537 30 18,140
-------------- -------------- -------------- --------------- --------------
92,705 60,246 19,812 46 19,748
-------------- -------------- -------------- --------------- --------------
Capitalization:
Long-Term Debt - - - - 5,249
-------------- -------------- -------------- --------------- --------------
Preferred Stock - Nonredeemable - - - - -
-------------- -------------- -------------- --------------- --------------
Advances from Northeast Utilities - - - - 5,000
-------------- -------------- -------------- --------------- --------------
Common Stockholders' Equity:
Common shares - 15 1 350 10
Capital surplus, paid in 1 15,350 9 155 -
Deferred contribution plan -
employee stock ownership plan - - - - -
Retained earnings/accumulated deficit - 851 4 (3,103) 868
Accumulated other comprehensive
income/(loss) - - - - -
Treasury stock - - - - -
-------------- -------------- -------------- --------------- --------------
Common Stockholders' Equity 1 16,216 14 (2,598) 878
-------------- -------------- -------------- --------------- --------------
Total Capitalization 1 16,216 14 (2,598) 11,127
-------------- -------------- -------------- --------------- --------------
Total Liabilities and Capitalization $ 563,828 $ 81,501 $ 40,876 $ 1,602 $ 65,036
============== ============== ============== =============== ==============
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2002
(Thousands of Dollars)
NU
Yankee Energy Charter Oak Enterprises,
Systems, Inc. Energy, Inc. Inc.
(consolidated) (consolidated) (consolidated)
(b) (b) (b) Eliminations Consolidated
-------------- -------------- -------------- --------------- --------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to banks $ - $ - $ - $ - $ 56,000
Notes payable to affiliated companies 68,400 - 237,150 798,300 -
Long-term debt - current portion 2,350 - 29,262 - 56,906
Accounts payable 36,734 - 426,811 - 766,128
Accounts payable to affiliated companies 4,313 - 10,778 211,146 -
Accrued taxes 8,756 84 19,813 10,724 141,667
Accrued interest 3,355 - 7,816 - 40,597
Derivative liabilities - - 63,900 - 63,900
Other 23,741 - 37,355 1,308 179,154
-------------- -------------- -------------- --------------- --------------
147,649 84 832,885 1,021,478 1,304,352
-------------- -------------- -------------- --------------- --------------
Rate Reduction Bonds - - - - 1,899,312
-------------- -------------- -------------- --------------- --------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes 86,016 - 36,047 33,387 1,436,507
Accumulated deferred investment
tax credits 6,722 - - - 106,471
Deferred contractual obligations - - - - 354,469
Accrued pension - - - 97,648 -
Other 65,642 - 52,833 42,669 552,641
-------------- -------------- -------------- --------------- --------------
158,380 - 88,880 173,704 2,450,088
-------------- -------------- -------------- --------------- --------------
Capitalization:
Long-Term Debt 151,376 - 459,377 - 2,287,144
-------------- -------------- -------------- --------------- --------------
Preferred Stock - Nonredeemable - - - - 116,200
-------------- -------------- -------------- --------------- --------------
Advances from Northeast Utilities - - 34,299 48,899 -
-------------- -------------- -------------- --------------- --------------
Common Stockholders' Equity:
Common shares - - - 73,995 746,879
Capital surplus, paid in 484,769 64,344 662,976 1,758,522 1,108,338
Deferred contribution plan -
employee stock ownership plan - - - - (87,746)
Retained earnings/accumulated deficit 40,943 (64,075) (127,445) 447,264 765,611
Accumulated other comprehensive
income/(loss) 1,354 - 10,684 11,476 14,927
Treasury stock - - - - (337,488)
-------------- -------------- -------------- --------------- --------------
Common Stockholders' Equity 527,066 269 546,215 2,291,257 2,210,521
-------------- -------------- -------------- --------------- --------------
Total Capitalization 678,442 269 1,039,891 2,340,156 4,613,865
-------------- -------------- -------------- --------------- --------------
Total Liabilities and Capitalization $ 984,471 $ 353 $ 1,961,656 $ 3,535,338 $ 10,267,617
============== ============== ============== =============== ==============
Note: Individual columns may not add to Consolidated due to rounding. The
accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
(b) See supporting statements.
F-10
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2002
(Thousands of Dollars)
The Public Western
Connecticut 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 $ - $ 2,507,036 $ 1,046,738 $ 369,487 $ (76,916) $ 38,246
------------- ------------- ------------- ------------- ------------- ------------
Operating Expenses:
Operation-
Fuel, purchased and net
interchange power - 1,477,347 387,987 181,485 13,047 25,473
Other 12,740 300,439 126,506 49,039 31,768 5,977
Maintenance - 80,132 64,146 14,499 19,849 3,903
Depreciation - 98,360 40,941 14,381 8,349 652
Amortization - 178,274 238,960 39,712 (25) (2)
Taxes other than income taxes 47 137,299 34,226 10,688 6,690 1,546
Gain on sale of utility plant - (16,143) - - (170,970) -
------------- ------------- ------------- ------------- ------------- ------------
Total operating expenses 12,787 2,255,708 892,766 309,804 (91,292) 37,549
------------- ------------- ------------- ------------- ------------- ------------
Operating (Loss)/Income (12,787) 251,328 153,972 59,683 14,376 697
------------- ------------- ------------- ------------- ------------- ------------
Interest Expense
Interest on long-term debt 28,043 41,332 16,752 2,942 (423) (23)
Interest on rate reduction bonds - 75,705 30,499 9,587 - -
Other interest 2,587 3,925 1,874 1,857 3,123 273
------------- ------------- ------------- ------------- ------------- ------------
Interest expense, net 30,630 120,962 49,125 14,386 2,700 250
------------- ------------- ------------- ------------- ------------- ------------
Other Income/(Loss), Net
Equity in earnings of subsidiaries 158,191 - - - - -
Other, net 27,257 22,112 (1,671) (850) 22,498 (1,433)
------------- ------------- ------------- ------------- ------------- ------------
Other income/(loss), net 185,448 22,112 (1,671) (850) 22,498 (1,433)
------------- ------------- ------------- ------------- ------------- ------------
Income/(Loss) Before Income Tax
(Benefit)/Expense 142,031 152,478 103,176 44,447 34,174 (986)
Income Tax (Benefit)/Expense (10,078) 66,866 40,279 6,765 7,829 (46)
------------- ------------- ------------- ------------- ------------- ------------
Net Income/(Loss) $ 152,109 $ 85,612 $ 62,897 $ 37,682 $ 26,345 $ (940)
============= ============= ============= ============= ============= =============
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, 2002
(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 $224,172 $ - $ 169,364 $ 203 $ 6,371 $ 293,879
---------- --------- -------------- ---------- ------------ --------------
Operating Expenses:
Operation-
Fuel, purchased and net - - 7,209 - - 150,240
interchange power
Other 196,662 - 100,958 266 695 51,032
Maintenance 6,298 - 55,525 - - 7,785
Depreciation 7,297 - - 54 2,590 23,090
Amortization - - - - - 1,462
Taxes other than income taxes 11,158 - 5,037 91 1,416 20,410
Gain on sale of utility plant - - - - - -
---------- --------- -------------- ---------- ------------ --------------
Total operating expenses 221,415 - 168,729 411 4,701 254,019
---------- --------- -------------- ---------- ------------ --------------
Operating (Loss)/Income 2,757 - 635 (208) 1,670 39,860
---------- --------- -------------- ---------- ------------ --------------
Interest Expense
Interest on long-term debt - - - - 760 11,885
Interest on rate reduction bonds - - - - - -
Other interest 151 - 21 65 624 2,712
---------- --------- -------------- ---------- ------------ --------------
Interest expense, net 151 - 21 65 1,384 14,597
---------- --------- -------------- ---------- ------------ --------------
Other Income/(Loss), Net
Equity in earnings of subsidiaries - - - - - -
Other, net (3,823) - (968) 54 32 (1,515)
---------- --------- -------------- ---------- ------------ --------------
Other income/(loss), net (3,823) - (968) 54 32 (1,515)
---------- --------- -------------- ---------- ------------ --------------
Income/(Loss) Before Income Tax
(Benefit)/Expense (1,217) - (354) (219) 318 23,748
Income Tax (Benefit)/Expense (1,217) - (354) (208) 124 7,853
---------- --------- -------------- ---------- ------------ --------------
Net Income/(Loss) $ - $ - $ - $ (11) $ 194 $ 15,895
========== ========= ============== ========== ============ ==============
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2002
(Thousands of Dollars)
NU
Charter Oak Enterprises,
Energy, Inc. Inc.
(consolidated) (consolidated)
(b) (b) Eliminations Consolidated
-------------- -------------- ------------ ------------
Operating Revenues $ - $ 1,680,337 $1,042,595 $5,216,321
------------- -------------- ------------ ------------
Operating Expenses:
Operation-
Fuel, purchased and net - 1,406,202 622,889 3,026,102
interchange power
Other (311) 201,460 324,749 752,482
Maintenance - 77,012 65,662 263,487
Depreciation - 17,805 7,871 205,646
Amortization - 3,163 - 461,544
Taxes other than income taxes - 15,105 16,194 227,518
Gain on sale of utility plant - - - (187,113)
------------- -------------- ------------ ------------
Total operating expenses (311) 1,720,747 1,037,365 4,749,666
------------- -------------- ------------ ------------
Operating (Loss)/Income 311 (40,410) 5,230 466,655
------------- -------------- ------------ ------------
Interest Expense
Interest on long-term debt - 33,203 - 134,471
Interest on rate reduction bonds - - - 115,791
Other interest - 10,403 7,368 20,249
------------- -------------- ------------ ------------
Interest expense, net - 43,606 7,368 270,511
------------- -------------- ------------ ------------
Other Income/(Loss), Net
Equity in earnings of subsidiaries - - 158,191 -
Other, net 26 (15,104) 2,787 43,828
------------- -------------- ------------ ------------
Other income/(loss), net 26 (15,104) 160,978 43,828
------------- -------------- ------------ ------------
Income/(Loss) Before Income Tax
(Benefit)/Expense 337 (99,120) 158,840 239,972
Income Tax (Benefit)/Expense 265 (36,600) (827) 82,304
------------- -------------- ------------ ------------
Net Income/(Loss) $ 72 $ (62,520) $ 159,667 $ 157,668
============= ============== ============ ============
F-12
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2002
(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 $ 678,460 $ 286,901 $ 176,419 $ 55,422 $ (1,007)
Additions:
Net income/(loss) 152,109 85,612 62,897 37,682 26,345
Allocation of benefits - ESOP 2,835 1,745 682 381 -
----------- --------------- --------------- -------------- --------------
833,404 374,258 239,998 93,485 25,338
----------- --------------- --------------- -------------- --------------
Deductions:
Dividends declared:
Preferred stock (at required annual rates):
The Connecticut Light and Power Company - 5,559 - - -
Common shares:
$8.38 per share - 60,145 - - -
$115,979.38 per share - - 45,000 - -
$34.12 per share - - - 16,009 -
$.525 per share 67,793 - - - -
$22,321.42 per share - - - - 5,000
----------- --------------- --------------- -------------- --------------
67,793 65,704 45,000 16,009 5,000
----------- --------------- --------------- -------------- --------------
Balance at end of period $ 765,611 $ 308,554 $ 194,998 $ 77,476 $ 20,338
=========== =============== =============== ============== ==============
Holyoke
Water Power Northeast
Company Utilities
(consolidated) Service
(b) Company
--------------- ----------
Balance at beginning of period $ (1,233) $ 851
Additions:
Net income/(loss) (940) -
Allocation of benefits - ESOP 28 -
------------- -------------
(2,145) 851
------------- -------------
Deductions:
Dividends declared:
Preferred stock (at required annual rates):
The Connecticut Light and Power Company - -
Common shares:
$8.38 per share - -
$115,979.38 per share - -
$34.12 per share - -
$.525 per share - -
$22,321.42 per share - -
------------- -------------
- -
------------- -------------
Balance at end of period $ (2,145) $ 851
============= ==============
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2002
(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 $1,107,609 $ 414,018 $ 165,000 $ 82,224 $ 36,000
Repurchase of common shares - (84,493) (37,000) (12,123) (35,000)
Capital contribution from Northeast Utilities - - - - -
Dividends declared on common shares
at $116,000.00 per share - - - - -
Premium on capital stock - issuance 5,032 - - - -
Capital stock expenses, net 376 232 - 131 -
Investment in Acumentrics Corporation - - - - -
Return of capital from NU Enterprises, Inc
to Northeast Utilities - - - - -
Allocation of benefits - ESOP and restricted stock (4,679) (2,458) (1,063) (520) -
------------ --------------- --------------- -------------- --------------
Balance at end of period $1,108,338 $ 327,299 $ 126,937 $ 69,712 $ 1,000
============ =============== =============== ============== ==============
Holyoke
Water Power Northeast
Company Utilities
(consolidated) Service
(b) Company
--------------- ----------
Balance at beginning of period $ 6,000 $ 1
Repurchase of common shares - -
Capital contribution from Northeast Utilities - -
Dividends declared on common shares
at $116,000.00 per share - -
Premium on capital stock - issuance - -
Capital stock expenses, net - -
Investment in Acumentrics Corporation - -
Return of capital from NU Enterprises, Inc
to Northeast Utilities - -
Allocation of benefits - ESOP and restricted stock (31) -
------------ ------------
Balance at end of period $ 5,969 $ 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, 2002
(Thousands of Dollars)
Yankee Energy Charter Oak
North Atlantic The The Rocky System, Inc. Energy, Inc.
Energy Service Quinnehtuk River Realty (consolidated) (consolidated)
Corporation Company Company (b) (b)
-------------- ---------- ------------ -------------- --------------
Balance at beginning of period $ 4 $ (3,092) $ 674 $ 25,048 $ (64,147)
Additions:
Net income/(loss) - (11) 194 15,895 72
Allocation of benefits - ESOP - - - - -
-------------- ---------- ------------ -------------- --------------
4 (3,103) 868 40,943 (64,075)
-------------- ---------- ------------ -------------- --------------
Deductions:
Dividends declared:
Preferred stock (at required annual rates):
The Connecticut Light and Power Company - - - - -
Common shares:
$8.38 per share - - - - -
$115,979.38 per share - - - - -
$34.12 per share - - - - -
$.525 per share - - - - -
$22,321.42 per share - - - - -
-------------- ---------- ------------ -------------- --------------
- - - - -
-------------- ---------- ------------ -------------- --------------
Balance at end of period $ 4 $ (3,103) $ 868 $ 40,943 $ (64,075)
============== ========== ============ ============== ==============
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2002
(Thousands of Dollars)
NU
Enterprises,
Inc.
(consolidated)
(b) Eliminations Consolidated
-------------- ------------ ------------
Balance at beginning of period $ (64,925) $ 410,916 $ 678,460
Additions:
Net income/(loss) (62,520) 159,667 157,668
Allocation of benefits - ESOP - 2,835 2,835
-------------- ------------ ------------
(127,445) 573,418 838,963
-------------- ------------ ------------
Deductions:
Dividends declared:
Preferred stock (at required annual rates):
The Connecticut Light and Power Company - - 5,559
Common shares:
$8.38 per share - 60,145 -
$115,979.38 per share - 45,000 -
$34.12 per share - 16,009 -
$.525 per share - - 67,793
$22,321.42 per share - 5,000 -
-------------- ------------ ------------
- 126,154 73,352
-------------- ------------ ------------
Balance at end of period $ (127,445) $ 447,264 $ 765,611
============== ============ ============
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Northeast Yankee Energy
Nuclear North Atlantic The System, Inc.
Energy Energy Service Quinnehtuk (consolidated)
Company Corporation Company (b)
------------ --------------- ------------ ---------------
Balance at beginning of period $ 15,350 $ 9 $ 155 $ 484,888
Repurchase of common shares - - - -
Capital contribution from Northeast Utilities - - - -
Dividends declared on common shares
at $116,000.00 per share - - - -
Premium on capital stock - issuance - - - -
Capital stock expenses, net - - - -
Investment in Acumentrics Corporation - - - -
Return of capital from NU Enterprises, Inc
to Northeast Utilities - - - -
Allocation of benefits - ESOP and restricted stock - - - (119)
-------------- --------------- ------------- -------------
Balance at end of period $ 15,350 $ 9 $ 155 $ 484,769
============== =============== ============= ==============
NU
Charter Oak Enterprises,
Energy, Inc. Inc.
(consolidated) (consolidated)
(b) (b) Eliminations Consolidated
-------------- -------------- ------------ ------------
Balance at beginning of period $ 75,944 $ 617,795 $ 1,897,382 $ 1,107,609
Repurchase of common shares - - (168,616) -
Capital contribution from Northeast Utilities - 58,150 58,150 -
Dividends declared on common shares
at $116,000.00 per share (11,600) - (11,600) -
Premium on capital stock - issuance - - - 5,032
Capital stock expenses, net - - 363 376
Investment in Acumentrics Corporation - 250 250 -
Return of capital from NU Enterprises, Inc
to Northeast Utilities - (13,000) (13,000) -
Allocation of benefits - ESOP and restricted stock - (219) (4,407) (4,679)
-------------- --------------- ------------- -------------
Balance at end of period $ 64,344 $ 662,976 $ 1,758,522 $ 1,108,338
============== =============== ============= =============
F-14
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2002
(Thousands of Dollars)
The Western
Connecticut Public Service Massachusetts
Light and Company of Electric
Northeast Power Company New Hampshire Company
Utilities (consolidated) (consolidated) (consolidated)
(parent) (b) (b) (b)
----------- -------------- -------------- --------------
Operating Activities:
Net income/(loss) $ 152,109 $ 85,612 $ 62,897 $ 37,682
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation - 98,360 40,941 14,381
Deferred income taxes and investment tax credits, net (565) (71,880) (79,866) (26,952)
Amortization - 178,274 238,960 39,712
Net amortization/(deferral) of recoverable energy costs - 30,787 9,859 (529)
Gain on sale of utility plant - (16,143) - -
Prepaid pension - (42,481) - (13,290)
Net other sources/(uses) of cash 13,338 62,868 (27,703) (8,221)
Changes in working capital:
Receivables and unbilled revenues, net 19,097 (37,435) 2,989 1,199
Fuel, materials and supplies - (1,017) (7,135) (365)
Accounts payable (24,049) 74,831 7,583 (13,989)
Accrued taxes 2,211 (643) 63,036 643
Investments in securitizable assets - 27,459 - -
Other working capital (excludes cash) 52,004 (1,184) 14,432 (2,351)
----------- -------------- -------------- --------------
Net cash flows provided by/(used in) operating activities 214,145 387,408 325,993 27,920
----------- -------------- -------------- --------------
Investing Activities:
Investments in plant:
Electric, gas and other utility plant - (242,301) (109,770) (23,428)
Competitive energy assets - - - -
Nuclear fuel - (57) - -
----------- -------------- -------------- --------------
Cash flows used for investments in plant - (242,358) (109,770) (23,428)
NU system Money Pool (lending)/borrowing (164,300) 75,300 (46,000) 76,700
Investments in nuclear decommissioning trusts - (1,086) - -
Net proceeds from the sale of utility plant - 35,887 - -
Buyout/buydown of IPP contracts - - (5,152) -
Payment for the purchase of Woods - - - -
Other investment activities, net 69,732 23,395 (8,269) 937
----------- -------------- -------------- --------------
Net cash flows (used in)/provided by investing activities (94,568) (108,862) (169,191) 54,209
----------- -------------- -------------- --------------
Financing Activities:
Issuance of common shares 7,458 - - -
Repurchase of common shares (57,800) (99,990) (37,000) (13,999)
Issuance of long-term debt 263,000 - - -
Issuance of rate reduction bonds - - 50,000 -
Retirement of rate reduction bonds - (112,924) (46,540) (9,575)
Net increase/(decrease) in short-term debt 9,000 - (60,500) (43,000)
Reacquisitions and retirements of long-term debt (286,000) - - -
Advance from parent - - - -
Capital contributions from Northeast Utilities - - - -
Cash dividends on preferred stock - (5,559) - -
Cash dividends on common shares (67,793) (60,145) (45,000) (16,009)
Other financing activities, net - (542) (13,922) (22)
----------- -------------- -------------- --------------
Net cash flows (used in)/provided by financing activities (132,135) (279,160) (152,962) (82,605)
----------- -------------- -------------- --------------
Net (decrease)/increase in cash for the year (12,558) (614) 3,840 (476)
Cash and cash equivalents - beginning of year 13,183 773 1,479 599
----------- -------------- -------------- --------------
Cash and cash equivalents - end of year $ 625 $ 159 $ 5,319 $ 123
=========== ============== ============== ==============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 25,213 $ 117,718 $ 47,506 $ 14,934
=========== ============== ============== ==============
Income taxes $ (10,677) $ 141,724 $ 56,458 $ 32,522
=========== ============== ============== ==============
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2002
(Thousands of Dollars)
North Holyoke
Atlantic Water Power
Energy Company
Corporation (consolidated)
(b)
------------ --------------
Operating Activities:
Net income/(loss) $ 26,345 $ (940)
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 8,349 652
Deferred income taxes and investment tax credits, net (5,982) 713
Amortization (25) (2)
Net amortization/(deferral) of recoverable energy costs 1,347 -
Gain on sale of utility plant (170,970) -
Prepaid pension - (1)
Net other sources/(uses) of cash (51,644) (427)
Changes in working capital:
Receivables and unbilled revenues, net 9,469 718
Fuel, materials and supplies (247) (1,204)
Accounts payable 1,766 (3,182)
Accrued taxes 10,850 162
Investments in securitizable assets - -
Other working capital (excludes cash) 5,200 177
------------ --------------
Net cash flows provided by/(used in) operating activities (165,542) (3,334)
------------ --------------
Investing Activities:
Investments in plant:
Electric, gas and other utility plant (4,591) -
Competitive energy assets - (954)
Nuclear fuel (408) -
------------ --------------
Cash flows used for investments in plant (4,999) (954)
NU system Money Pool (lending)/borrowing (10,200) 1,200
Investments in nuclear decommissioning trusts (8,790) -
Net proceeds from the sale of utility plant 330,899 -
Buyout/buydown of IPP contracts - -
Payment for the purchase of Woods - -
Other investment activities, net (11,452) 38
------------ --------------
Net cash flows (used in)/provided by investing activities 295,458 284
------------ --------------
Financing Activities:
Issuance of common shares - -
Repurchase of common shares (35,000) -
Issuance of long-term debt - -
Issuance of rate reduction bonds - -
Retirement of rate reduction bonds - -
Net increase/(decrease) in short-term debt (90,000) -
Reacquisitions and retirements of long-term debt - -
Advance from parent - -
Capital contributions from Northeast Utilities - -
Cash dividends on preferred stock - -
Cash dividends on common shares (5,000) -
Other financing activities, net - -
------------ --------------
Net cash flows (used in)/provided by financing activities (130,000) -
------------ --------------
Net (decrease)/increase in cash for the year (84) (3,050)
Cash and cash equivalents - beginning of year 84 3,130
------------ --------------
Cash and cash equivalents - end of year $ - $ 80
============ ==============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 3,191 $ 325
============ ==============
Income taxes $ (4,694) $ (406)
============ ==============
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, 2002
(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) $ - $ - $ - $ (11) $ 194
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 7,297 - - 54 2,590
Deferred income taxes and investment tax credits, net 1,077 - (130) 49 (748)
Amortization - - - - -
Net amortization/(deferral) of recoverable energy costs - - - - -
Gain on sale of utility plant - - - - -
Prepaid pension (15,829) - - - -
Net other sources/(uses) of cash 8,702 (3,954) 7,676 (279) (1,557)
Changes in working capital:
Receivables and unbilled revenues, net 3,032 3,550 12,184 - (177)
Fuel, materials and supplies 135 - (61) - -
Accounts payable 16,007 (6,577) (14,523) 12 604
Accrued taxes - 799 5,123 (67) 211
Investments in securitizable assets - - - - -
Other working capital (excludes cash) (251) 1,600 156 1 766
----------- --------- ----------- ---------- ---------
Net cash flows provided by/(used in) operating activities 20,170 (4,582) 10,425 (241) 1,883
----------- --------- ----------- ---------- ---------
Investing Activities:
Investments in plant:
Electric, gas and other utility plant (12,280) - - - (6,603)
Competitive energy assets - - - - -
Nuclear fuel - - - - -
----------- --------- ----------- ---------- ---------
Cash flows used for investments in plant (12,280) - - - (6,603)
NU system Money Pool (lending)/borrowing (55,300) 4,600 - 300 2,350
Investments in nuclear decommissioning trusts - - - - -
Net proceeds from the sale of utility plant - - - - -
Buyout/buydown of IPP contracts - - - - -
Payment for the purchase of Woods - - - - -
Other investment activities, net (10,427) - - - -
----------- --------- ----------- ---------- ---------
Net cash flows (used in)/provided by investing activities (78,007) 4,600 - 300 (4,253)
----------- --------- ----------- ---------- ---------
Financing Activities:
Issuance of common shares - - - - -
Repurchase of common shares - - - - -
Issuance of long-term debt - - - - -
Issuance of rate reduction bonds - - - - -
Retirement of rate reduction bonds - - - - -
Net increase/(decrease) in short-term debt - - - - -
Reacquisitions and retirements of long-term debt - - - - (2,735)
Advance from parent - - - - 5,000
Capital contributions from Northeast Utilities - - - - -
Cash dividends on preferred stock - - - - -
Cash dividends on common shares - - - - -
Other financing activities, net (6) - - - -
----------- --------- ----------- ---------- ---------
Net cash flows (used in)/provided by financing activities (6) - - - 2,265
----------- --------- ----------- ---------- ---------
Net (decrease)/increase in cash for the year (57,843) 18 10,425 59 (105)
Cash and cash equivalents - beginning of year 58,293 36 2,205 24 105
----------- --------- ----------- ---------- ---------
Cash and cash equivalents - end of year $ 450 $ 54 $ 12,630 $ 83 $ -
=========== ========= =========== ========== =========
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 37 $ - $ - $ 66 $ 1,450
=========== ========= =========== ========== =========
Income taxes $ (3,888) $(4,927) $ (293) $ (170) $ (307)
=========== ========= =========== ========== =========
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2002
(Thousands of Dollars)
NU
Yankee Energy Charter Oak Enterprises,
System, Inc. Energy, Inc. Inc.
(consolidated) (consolidated) (consolidated)
(b) (b) (b)
-------------- -------------- --------------
Operating Activities:
Net income/(loss) $ 15,895 $ 72 $ (62,520)
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 23,090 - 17,805
Deferred income taxes and investment tax credits, net 4,637 - 30,936
Amortization 1,462 - 3,163
Net amortization/(deferral) of recoverable energy costs (13,841) - -
Gain on sale of utility plant - - -
Prepaid pension (573) - (94)
Net other sources/(uses) of cash 2,776 - (40,520)
Changes in working capital:
Receivables and unbilled revenues, net (8,074) 23,825 (136,265)
Fuel, materials and supplies (12,822) - (117)
Accounts payable 16,783 (12,006) 128,005
Accrued taxes 931 (297) 19,019
Investments in securitizable assets - - -
Other working capital (excludes cash) 30,384 - (16,131)
-------------- -------------- --------------
Net cash flows provided by/(used in) operating activities 60,648 11,594 (56,719)
-------------- -------------- --------------
Investing Activities:
Investments in plant:
Electric, gas and other utility plant (70,647) - (25)
Competitive energy assets - - (22,197)
Nuclear fuel - - -
-------------- -------------- --------------
Cash flows used for investments in plant (70,647) - (22,222)
NU system Money Pool (lending)/borrowing 63,200 - 52,150
Investments in nuclear decommissioning trusts - - -
Net proceeds from the sale of utility plant - - -
Buyout/buydown of IPP contracts - - -
Payment for the purchase of Woods - - (16,351)
Other investment activities, net (1,902) - 23,164
-------------- -------------- --------------
Net cash flows (used in)/provided by investing activities (9,349) - 36,741
-------------- -------------- --------------
Financing Activities:
Issuance of common shares - - -
Repurchase of common shares - - -
Issuance of long-term debt - - 47,648
Issuance of rate reduction bonds - - -
Retirement of rate reduction bonds - - -
Net increase/(decrease) in short-term debt (50,000) - -
Reacquisitions and retirements of long-term debt (1,050) - (24,988)
Advance from parent - - 797
Capital contributions from Northeast Utilities - - 45,400
Cash dividends on preferred stock - - -
Cash dividends on common shares - (11,600) -
Other financing activities, net - - -
-------------- -------------- --------------
Net cash flows (used in)/provided by financing activities (51,050) (11,600) 68,857
-------------- -------------- --------------
Net (decrease)/increase in cash for the year 249 (6) 48,879
Cash and cash equivalents - beginning of year 393 279 16,077
-------------- -------------- --------------
Cash and cash equivalents - end of year $ 642 $ 273 $ 64,956
============== ============== ==============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 14,070 $ - $ 42,572
============== ============== ==============
Income taxes $ 3,665 $ 320 $ (94,963)
============== ============== ==============
NORTHEAST UTILITIES AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Eliminations Consolidated
------------ ------------
Operating Activities:
Net income/(loss) $ 159,667 $ 157,668
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 7,871 205,646
Deferred income taxes and investment tax credits, net 615 (149,325)
Amortization - 461,544
Net amortization/(deferral) of recoverable energy costs - 27,623
Gain on sale of utility plant - (187,113)
Prepaid pension 24,226 (96,492)
Net other sources/(uses) of cash (49,655) 10,707
Changes in working capital:
Receivables and unbilled revenues, net (3,709) (102,181)
Fuel, materials and supplies 4,758 (27,590)
Accounts payable 17,818 153,450
Accrued taxes (12,319) 114,296
Investments in securitizable assets - 27,459
Other working capital (excludes cash) 67,852 16,953
------------ ------------
Net cash flows provided by/(used in) operating activities 217,124 612,645
------------ ------------
Investing Activities:
Investments in plant:
Electric, gas and other utility plant (804) (468,842)
Competitive energy assets - (23,150)
Nuclear fuel - (465)
------------ ------------
Cash flows used for investments in plant (804) (492,457)
NU system Money Pool (lending)/borrowing - -
Investments in nuclear decommissioning trusts - (9,876)
Net proceeds from the sale of utility plant - 366,786
Buyout/buydown of IPP contracts - (5,152)
Payment for the purchase of Woods - (16,351)
Other investment activities, net 69,982 15,234
------------ ------------
Net cash flows (used in)/provided by investing activities 69,178 (141,816)
------------ ------------
Financing Activities:
Issuance of common shares - 7,458
Repurchase of common shares (185,989) (57,800)
Issuance of long-term debt - 310,648
Issuance of rate reduction bonds - 50,000
Retirement of rate reduction bonds - (169,039)
Net increase/(decrease) in short-term debt - (234,500)
Reacquisitions and retirements of long-term debt - (314,773)
Advance from parent 5,797 -
Capital contributions from Northeast Utilities 45,400 -
Cash dividends on preferred stock - (5,559)
Cash dividends on common shares (137,754) (67,793)
Other financing activities, net (13,756) (736)
------------ ------------
Net cash flows (used in)/provided by financing activities (286,302) (482,094)
------------ ------------
Net (decrease)/increase in cash for the year - (11,265)
Cash and cash equivalents - beginning of year - 96,658
------------ ------------
Cash and cash equivalents - end of year $ - $ 85,393
============ ============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 7,196 $ 259,886
============ ============
Income taxes $ - $ 114,364
============ ============
F-16
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Balance Sheet (b)
Assets
December 31, 2002
(Thousands of Dollars)
The
Connecticut CL&P
Light and Receivables CL&P
Power Company Corporation Funding LLC Eliminations Consolidated
------------- ----------- ----------- ------------ --------------
ASSETS
------
Current Assets:
Cash and cash equivalents $ - $ 158 $ 1 $ - $ 159
Investments in securitizable assets 49,180 218,908 - 89,180 178,908
Receivables, net 88,001 - - - 88,001
Accounts receivable from affiliated companies 122,100 111,107 - 182,149 51,060
Unbilled revenues 5,801 - - - 5,801
Notes receivable from affiliated companies 1,900 - 1,245,728 1,245,728 1,900
Fuel, materials, and supplies, at average cost 32,379 - - - 32,379
Prepayments and other 19,407 - - - 19,407
-------------- ------------ ------------ ------------- ---------------
318,768 330,173 1,245,729 1,517,057 377,615
-------------- ------------ ------------ ------------- ---------------
Property, Plant and Equipment:
Electric utility 3,139,128 - - - 3,139,128
Less: Accumulated depreciation 1,113,991 - - - 1,113,991
-------------- ------------ ------------ ------------- ---------------
2,025,137 - - - 2,025,137
Construction work in progress 153,556 - - - 153,556
-------------- ------------ ------------ ------------- ---------------
2,178,693 - - - 2,178,693
-------------- ------------ ------------ ------------- ---------------
Deferred Debits and Other Assets:
Regulatory assets 1,702,677 - - - 1,702,677
Prepaid pension 276,173 - - - 276,173
Investments in subsidiary companies, at equity 64,847 - - 64,847 -
Other 82,370 - 14,557 - 96,925
-------------- ------------ ------------ ------------- ---------------
2,126,067 - 14,557 64,847 2,075,775
-------------- ------------ ------------ ------------- ---------------
Total Assets $ 4,623,528 $ 330,173 $1,260,286 $1,581,904 $ 4,632,083
============== ============ ============ ============= ===============
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, 2002
(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 affiliated companies $ 1,245,728 $ - $ - $ 1,245,728 $ -
Notes payable to banks - 40,000 - 40,000 -
Accounts payable 174,890 - - - 174,890
Accounts payable to affiliated companies 117,904 - 9 9 117,904
Accrued taxes 33,150 1,200 - - 34,350
Accrued interest 10,077 30,550 - 30,551 10,077
Other 41,140 - 7,356 - 48,495
------------- ----------- ------------ ------------ ------------
1,622,889 71,750 7,365 1,316,288 385,716
------------- ----------- ------------ ------------ ------------
Rate Reduction Bonds - - 1,245,728 - 1,245,728
------------- ----------- ------------ ------------ ------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes 756,461 - - - 756,461
Accumulated deferred investment tax credits 93,408 - - - 93,408
Deferred contractual obligations 234,537 - - - 234,537
Other 276,325 - - - 276,325
------------- ----------- ------------ ------------ ------------
1,360,731 - - - 1,360,731
------------- ----------- ------------ ------------ ------------
Capitalization:
Long-Term Debt 827,866 - - - 827,866
------------- ----------- ------------ ------------ ------------
Preferred Stock - Nonredeemable 116,200 - - - 116,200
------------- ----------- ------------ ------------ ------------
Common Stockholder's Equity:
Common stock 60,352 - - - 60,352
Capital surplus, paid in 327,299 200,829 7,193 208,022 327,299
Retained earnings 308,554 57,594 - 57,594 308,554
Accumulated other comprehensive loss (363) - - - (363)
------------- ----------- ------------ ------------ ------------
Common Stockholder's Equity 695,842 258,423 7,193 265,616 695,842
------------- ----------- ------------ ------------ ------------
Total Capitalization 1,639,908 258,423 7,193 265,616 1,639,908
------------- ----------- ------------ ------------ ------------
Total Liabilities and Capitalization $ 4,623,528 $ 330,173 $1,260,286 $1,581,904 $4,632,083
============= =========== ============ ============ ============
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, 2002
(Thousands of Dollars)
The Connecticut CL&P
Light and Power Receivables CL&P
Company Corporation Funding LLC Eliminations Consolidated
--------------- ----------- ----------- ------------ ------------
Operating Revenues $ 2,507,036 $ - $ 77,110 $ 77,110 $2,507,036
--------------- ----------- ----------- ------------ ------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power 1,477,347 - - - 1,477,347
Other 299,909 530 77,110 77,110 300,439
Maintenance 80,132 - - - 80,132
Depreciation 98,360 - - - 98,360
Amortization of regulatory assets, net 178,274 - - - 178,274
Taxes other than income taxes 137,299 - - - 137,299
Gain on sale of utility plant (16,143) - - - (16,143)
--------------- ----------- ----------- ------------ ------------
Total operating expenses 2,255,178 530 77,110 77,110 2,255,708
--------------- ----------- ----------- ------------ ------------
Operating Income/(Loss) 251,858 (530) - - 251,328
--------------- ----------- ----------- ------------ ------------
Interest Expense:
Interest on long-term debt 41,332 - - - 41,332
Interest on rate reduction bonds 75,705 - - - 75,705
Other interest 3,925 178 - 178 3,925
--------------- ----------- ----------- ------------ ------------
Interest expense, net 120,962 178 - 178 120,962
--------------- ----------- ----------- ------------ ------------
Other Income, Net
Equity in earnings of subsidiaries 16,536 - - 16,536 -
Other, net (5,921) 28,210 - 178 22,112
--------------- ----------- ----------- ------------ ------------
Other income, net 10,615 28,210 - 16,714 22,112
--------------- ----------- ----------- ------------ ------------
Income Before Income Tax Expense 141,511 27,502 - 16,536 152,478
Income Tax Expense 55,899 10,966 - - 66,866
--------------- ----------- ----------- ------------ ------------
Net Income $ 85,612 $ 16,536 $ - $ 16,536 $ 85,612
=============== =========== =========== ============ ============
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, 2002
(Thousands of Dollars)
The Connecticut CL&P
Light and Power Receivables CL&P
Company Corporation Funding LLC Eliminations Consolidated
--------------- ----------- ----------- ------------ ------------
Balance at beginning of period $ 286,901 $ 41,058 $ - $ 41,058 $ 286,901
Additions:
Net income 85,612 16,536 - 16,536 85,612
Allocation of benefits - ESOP 1,745 - - - 1,745
--------------- ----------- ----------- ------------ ------------
374,258 57,594 - 57,594 374,258
--------------- ----------- ----------- ------------ ------------
Deductions:
Dividends declared:
Preferred stock (at required annual rates) 5,559 - - - 5,559
Common stock $8.38 per share 60,145 - - - 60,145
--------------- ----------- ----------- ------------ ------------
65,704 - - - 65,704
--------------- ----------- ----------- ------------ ------------
Balance at end of period $ 308,554 $ 57,594 $ - $ 57,594 $ 308,554
=============== =========== =========== ============ ============
THE CONNECTICUT LIGHT AND POWER COMPANY
AND SUBSIDIARIES (a)
Consolidating Statement of Capital Surplus, Paid In (b)
Year Ended December 31, 2002
(Thousands of Dollars)
The Connecticut CL&P
Light and Power Receivables CL&P
Company Corporation Funding LLC Eliminations Consolidated
--------------- ----------- ----------- ------------ ------------
Balance at beginning of period $ 414,018 $ 240,829 $ 7,193 $ 248,022 $ 414,018
Repurchase of common stock (84,493) - - - (84,493)
Allocation of benefits - ESOP (2,458) - - - (2,458)
Borrowing from The Connecticut
Light and Power Company - (40,000) - (40,000) -
Capital stock expenses, net 232 - - - 232
--------------- ----------- ----------- ------------ ------------
Balance at end of period $ 327,299 $ 200,829 $ 7,193 $ 208,022 $ 327,299
=============== =========== =========== ============ ============
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 SUBSIDIAIRIES
Consolidating Statement of Cash Flows (a) (b)
Year Ended December 31, 2002
(Thousands of Dollars)
The
Connecticut CL&P
Light and Receivables CL&P
Power Company Corporation Funding LLC Eliminations Consolidated
------------- ----------- ----------- ------------ ------------
Operating Activities:
Net Income $ 85,612 $ 16,536 $ - $ 16,536 $ 85,612
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 98,360 - - - 98,360
Deferred income taxes and investment tax credits, net (71,880) - - - (71,880)
Amortization 178,274 - - - 178,274
Net amortization of recoverable energy costs, net 30,787 - - - 30,787
Gain on sale of utility plant (16,143) - - - (16,143)
Prepaid pension (42,481) - - - (42,481)
Net other sources/(uses) of cash 62,868 (40,000) - (40,000) 62,868
Changes in working capital:
Receivables and unbilled revenues, net (52,041) (1,251) - (15,858) (37,435)
Fuel, materials and supplies (1,017) - - - (1,017)
Accounts payable 74,831 - 9 9 74,831
Accrued taxes 2,284 (2,927) - - (643)
Investment in securitizable assets 55,670 (12,541) - 15,670 27,459
Other working capital (excludes cash) (1,663) 178 478 179 (1,184)
------------- ----------- ----------- ------------ ------------
Net cash flows provided by/(used in) operating activities 403,461 (40,005) 487 (23,464) 387,408
------------- ----------- ----------- ------------ ------------
Investing Activities:
Investments in plant:
Electric utility plant (242,301) - - - (242,301)
Nuclear fuel (57) - - - (57)
------------- ----------- ----------- ------------ ------------
Cash flows used for investments in plant (242,358) - - - (242,358)
NU system money pool (lending)/borrowing (37,625) - 112,925 - 75,300
Investments in nuclear decommissioning trusts (1,086) - - - (1,086)
Net proceeds from the sale of utility plant 35,887 - - - 35,887
Other investment activities, net 7,347 - (488) (16,536) 23,395
------------- ----------- ----------- ------------ ------------
Net cash flows (used in)/provided by investing activities (237,835) - 112,437 (16,536) (108,862)
------------- ----------- ----------- ------------ ------------
Financing Activities:
Repurchase of common stock (99,990) - - - (99,990)
Retirement of rate reduction bonds - - (112,924) - (112,924)
Net increase in short-term debt - 40,000 - 40,000 -
Cash dividends on preferred stock (5,559) - - - (5,559)
Cash dividends on common stock (60,145) - - - (60,145)
Other financing activities, net (542) - - - (542)
------------- ----------- ----------- ------------ ------------
Net cash flows (used in)/provided by financing activities (166,236) 40,000 (112,924) 40,000 (279,160)
------------- ----------- ----------- ------------ ------------
Net decrease in cash for the year (610) (5) - - (614)
Cash and cash equivalents - beginning of year 610 163 1 - 773
------------- ----------- ----------- ------------ ------------
Cash and cash equivalents - end of year $ - $ 158 $ 1 $ - $ 159
============= =========== =========== ============ ============
Supplemental Cash Flow Information:
Cash paid during the year for:
Interest, net of amounts capitalized $ 117,718 $ - $ - $ - $ 117,718
============= =========== =========== ============ ============
Income taxes $ 127,390 $ 14,334 $ - $ - $ 141,724
============= =========== =========== ============ ============
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, 2002
(Thousands of Dollars)
Public Service
Company of PSNH PSNH
New Hampshire Funding LLC Funding LLC 2 Properties, Inc. Eliminations
-------------- ----------- ------------- ---------------- ------------
ASSETS
------
Current Assets:
Cash $ 4,351 $ 1 $ 1 $ 966 $ -
Receivables, net 68,201 - - 3 -
Accounts receivable from affiliated companies 9,668 - - 71 72
Taxes receivable - - - 145 145
Unbilled revenues 32,004 - - - -
Notes receivable from affiliated companies 23,000 459,773 45,608 - 505,380
Fuel, materials, and supplies, at average cost 49,182 - - - -
Prepayments and other 9,981 - - 51 -
-------------- ----------- ------------- -------------- ------------
196,387 459,774 45,609 1,236 505,597
-------------- ----------- ------------- -------------- ------------
Property, Plant and Equipment:
Electric utility 1,431,509 - - 201 -
Other - - - 6,195 -
-------------- ----------- ------------- -------------- ------------
1,431,509 - - 6,396 -
Less: Accumulated depreciation 713,955 - - 1,782 -
-------------- ----------- ------------- -------------- ------------
717,554 - - 4,614 -
Construction work in progress 50,547 - - - -
-------------- ----------- ------------- -------------- ------------
768,101 - - 4,614 -
-------------- ----------- ------------- -------------- ------------
Deferred Debits and Other Assets:
Regulatory assets 859,871 - - - -
Investments in subsidiary companies, at equity 9,386 - - - 9,386
Other 48,721 32,094 11,401 169 105
-------------- ----------- ------------- -------------- ------------
917,978 32,094 11,401 169 9,491
-------------- ----------- ------------- -------------- ------------
Total Assets $ 1,882,466 $ 491,868 $ 57,010 $ 6,019 $ 515,088
============== =========== ============= ============== ============
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2002
(Thousands of Dollars)
Consolidated
------------
ASSETS
------
Current Assets:
Cash $ 5,319
Receivables, net 68,204
Accounts receivable from affiliated companies 9,667
Taxes receivable -
Unbilled revenues 32,004
Notes receivable from affiliated companies 23,000
Fuel, materials, and supplies, at average cost 49,182
Prepayments and other 10,032
------------
197,408
------------
Property, Plant and Equipment:
Electric utility 1,431,710
Other 6,195
------------
1,437,905
Less: Accumulated depreciation 715,736
------------
722,169
Construction work in progress 50,547
------------
772,716
------------
Deferred Debits and Other Assets:
Regulatory assets 859,871
Investments in subsidiary companies, at equity -
Other 92,280
------------
952,151
------------
Total Assets $1,922,275
============
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, 2002
(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 affiliated companies $ 505,380 $ - $ - $ - $ 505,380
Accounts payable 54,579 - - 9 -
Accounts payable to affiliated companies 3,845 213 21 - 72
Accrued taxes 65,461 - - 1 145
Accrued interest 2,470 8,259 604 - -
Other 12,667 16,089 9,473 - -
-------------- ----------- ------------- ---------------- ------------
644,402 24,561 10,098 10 505,597
-------------- ----------- ------------- ---------------- ------------
Rate Reduction Bonds - 464,181 46,661 - -
-------------- ----------- ------------- ---------------- ------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes 360,015 - - - 105
Accumulated deferred investment tax credits 2,680 - - - -
Deferred contractual obligations 56,165 - - - -
Accrued pension 37,933 - - - -
Other 52,156 - - - -
-------------- ----------- ------------- ---------------- ------------
508,949 - - - 105
-------------- ----------- ------------- ---------------- ------------
Capitalization:
Long-Term Debt 407,285 - - - -
-------------- ----------- ------------- ---------------- ------------
Common Stockholder's Equity:
Common stock - - - 1 1
Capital surplus, paid in 126,937 3,126 251 - 3,377
Retained earnings 194,998 - - 6,008 6,008
Accumulated other comprehensive income (105) - - - -
-------------- ----------- ------------- ---------------- ------------
Common Stockholder's Equity 321,830 3,126 251 6,009 9,386
-------------- ----------- ------------- ---------------- ------------
Total Capitalization 729,115 3,126 251 6,009 9,386
-------------- ----------- ------------- ---------------- ------------
Total Liabilities and Capitalization $ 1,882,466 $ 491,868 $ 57,010 $ 6,019 $ 515,088
============== =========== ============= ================ ============
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2002
(Thousands of Dollars)
Consolidated
-------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to affiliated companies $ -
Accounts payable 54,588
Accounts payable to affiliated companies 4,008
Accrued taxes 65,317
Accrued interest 11,333
Other 38,229
-------------
173,475
-------------
Rate Reduction Bonds 510,841
-------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes 359,910
Accumulated deferred investment tax credits 2,680
Deferred contractual obligations 56,165
Accrued pension 37,933
Other 52,156
-------------
508,844
-------------
Capitalization:
Long-Term Debt 407,285
-------------
Common Stockholder's Equity:
Common stock -
Capital surplus, paid in 126,937
Retained earnings 194,998
Accumulated other comprehensive income (105)
-------------
Common Stockholder's Equity 321,830
-------------
Total Capitalization 729,115
-------------
Total Liabilities and Capitalization $ 1,922,275
=============
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, 2002
(Thousands of Dollars)
Public Service
Company of PSNH PSNH
New Hampshire Funding LLC Funding LLC 2 Properties, Inc. Eliminations
-------------- ------------ ------------- ---------------- ------------
Operating Revenues $ 1,046,675 $ 30,229 $ 2,198 $ 723 $ 33,088
-------------- ------------ ------------- ---------------- ------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power 387,987 - - - -
Other 127,163 30,229 2,198 3 33,088
Maintenance 64,146 - - - -
Depreciation 40,941 - - - -
Amortization of regulatory assets, net 238,960 - - - -
Taxes other than income taxes 34,071 - - 155 -
-------------- ------------ ------------- ---------------- ------------
Total operating expenses 893,268 30,229 2,198 158 33,088
-------------- ------------ ------------- ---------------- ------------
Operating Income 153,407 - - 565 -
-------------- ------------ ------------- ---------------- ------------
Interest Expense:
Interest on long-term debt 16,752 - - - -
Interest on rate reduction bonds 30,499 - - - -
Other interest 1,874 - - - -
-------------- ------------ ------------- ---------------- ------------
Interest expense, net 49,125 - - - -
-------------- ------------ ------------- ---------------- ------------
Other (Loss)/Income, Net
Equity in earnings of subsidiaries 789 - - - 789
Other, net (2,341) - - 670 -
-------------- ------------ ------------- ---------------- ------------
Other (loss)/income, net (1,552) - - 670 789
-------------- ------------ ------------- ---------------- ------------
Income Before Income Tax Expense 102,730 - - 1,235 789
Income Tax Expense 39,833 - - 446 -
-------------- ------------ ------------- ---------------- ------------
Net Income $ 62,897 $ - $ - $ 789 $ 789
============== ============ ============= ================ ============
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Consolidated
------------
Operating Revenues $1,046,738
------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power 387,987
Other 126,506
Maintenance 64,146
Depreciation 40,941
Amortization of regulatory assets, net 238,960
Taxes other than income taxes 34,226
------------
Total operating expenses 892,766
------------
Operating Income 153,972
------------
Interest Expense:
Interest on long-term debt 16,752
Interest on rate reduction bonds 30,499
Other interest 1,874
------------
Interest expense, net 49,125
------------
Other (Loss)/Income, Net
Equity in earnings of subsidiaries -
Other, net (1,671)
------------
Other (loss)/income, net (1,671)
------------
Income Before Income Tax Expense 103,176
Income Tax Expense 40,279
------------
Net Income $ 62,897
============
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.
F-25
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2002
(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 $ 176,419 $ - $ - $ 5,219 $ 5,219 $ 176,419
Additions:
Net income 62,897 - - 789 789 62,897
Allocation of benefits - ESOP 682 - - - - 682
-------------- ----------- ------------- ----------- ------------ ------------
239,998 - - 6,008 6,008 239,998
-------------- ----------- ------------- ----------- ------------ ------------
Deductions:
Dividends declared:
Common stock $115,979.38 per share 45,000 - - - - 45,000
-------------- ----------- ------------- ----------- ------------ ------------
45,000 - - - - 45,000
-------------- ----------- ------------- ----------- ------------ ------------
Balance at end of period $ 194,998 $ - $ - $ 6,008 $ 6,008 $ 194,998
============== =========== ============= =========== ============ ============
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2002
(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 $ 165,000 $ 3,126 $ 1 $ - $ 3,127 $ 165,000
Repurchase of common stock (37,000) - - - - (37,000)
Capital contribution from Public Service
Company of New Hampshire - - 250 - 250 -
Allocation of benefits - ESOP (1,063) - - - - (1,063)
-------------- ----------- ------------- ----------- ------------ ------------
Balance at end of period $ 126,937 $ 3,126 $ 251 $ - $ 3,377 $ 126,937
============== =========== ============= =========== ============ ============
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, 2002
(Thousands of Dollars)
Public Service
Company of PSNH PSNH Properties,
New Hampshire Funding LLC Funding LLC 2 Inc. Eliminations
-------------- ----------- ------------- ----------- ------------
Operating Activities:
Net income $ 62,897 $ - $ - $ 789 $ 789
Adjustments to reconcile to net cash
provided by operating activities:
Depreciation 40,941 - - - -
Deferred income taxes and investment tax credits, net (79,843) - - (23) -
Amortization 238,960 - - - -
Net amortization of recoverable energy costs, net 9,859 - - - -
Net other (uses)/sources of cash (27,507) (3) 250 (192) 251
Changes in working capital:
Receivables and unbilled revenues, net 3,297 - - 18 326
Fuel, materials and supplies (7,135) - - - -
Accounts payable 7,581 (22) 21 (323) (326)
Accrued taxes 62,984 - - (7) (59)
Other working capital (excludes cash) 1,079 3,281 10,077 53 58
-------------- ----------- ------------- ----------- ------------
Net cash flows provided by operating activities 313,113 3,256 10,348 315 1,039
-------------- ----------- ------------- ----------- ------------
Investing Activities:
Investments in plant:
Electric utility plant (109,770) - - - -
-------------- ----------- ------------- ----------- ------------
Cash flows used for investments in regulated plant (109,770) - - - -
NU system Money Pool (lending)/borrowing (38,804) 38,411 (45,608) - -
Buyout of IPP contract (5,152) - - - -
Other investment activities, net 443 1,534 (11,401) 118 (1,039)
-------------- ----------- ------------- ----------- ------------
Net cash flows (used in)/provided by investing activities (153,283) 39,945 (57,009) 118 (1,039)
-------------- ----------- ------------- ----------- ------------
Financing Activities:
Repurchase of common stock (37,000) - - - -
Issuance of rate reduction bonds - - 50,000 - -
Retirement of rate reduction bonds - (43,201) (3,339) - -
Net decrease in short-term debt (60,500) - - - -
Cash dividends on common stock (45,000) - - - -
Other financing activities, net (13,922) - - - -
-------------- ----------- ------------- ----------- ------------
Net cash flows (used in)/provided by financing activities (156,422) (43,201) 46,661 - -
-------------- ----------- ------------- ----------- ------------
Net increase in cash for the year 3,408 - - 433 -
Cash and cash equivalents - beginning of year 943 1 1 533 -
-------------- ----------- ------------- ----------- ------------
Cash and cash equivalents - end of year $ 4,351 $ 1 $ 1 $ 966 $ -
============== =========== ============= =========== ============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 47,780 $ 329 $ (603) $ - $ -
============== =========== ============= =========== ============
Income taxes $ 56,048 $ - $ - $ 410 $ -
============== =========== ============= =========== ============
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Consolidated
------------
Operating Activities:
Net income $ 62,897
Adjustments to reconcile to net cash
provided by operating activities:
Depreciation 40,941
Deferred income taxes and investment tax credits, net (79,866)
Amortization 238,960
Net amortization of recoverable energy costs, net 9,859
Net other (uses)/sources of cash (27,703)
Changes in working capital:
Receivables and unbilled revenues, net 2,989
Fuel, materials and supplies (7,135)
Accounts payable 7,583
Accrued taxes 63,036
Other working capital (excludes cash) 14,432
------------
Net cash flows provided by operating activities 325,993
------------
Investing Activities:
Investments in plant:
Electric utility plant (109,770)
------------
Cash flows used for investments in regulated plant (109,770)
NU system Money Pool (lending)/borrowing (46,000)
Buyout of IPP contract (5,152)
Other investment activities, net (8,269)
------------
Net cash flows (used in)/provided by investing activities (169,191)
------------
Financing Activities:
Repurchase of common stock (37,000)
Issuance of rate reduction bonds 50,000
Retirement of rate reduction bonds (46,540)
Net decrease in short-term debt (60,500)
Cash dividends on common stock (45,000)
Other financing activities, net (13,922)
------------
Net cash flows (used in)/provided by financing activities (152,962)
------------
Net increase in cash for the year 3,840
Cash and cash equivalents - beginning of year 1,479
------------
Cash and cash equivalents - end of year $ 5,319
============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 47,506
============
Income taxes $ 56,458
============
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, 2002
(Thousands of Dollars)
Western WMECO
Massachusetts Funding
Electric Company LLC Eliminations Consolidated
---------------- ----------- ------------ ------------
ASSETS
------
Current Assets:
Cash $ 122 $ 1 $ - $ 123
Receivables, net 42,203 - - 42,203
Accounts receivable from affiliated companies 6,369 - - 6,369
Unbilled revenues 8,944 - - 8,944
Notes receivable from affiliated companies - 141,901 141,901 -
Fuel, materials and supplies, at average cost 1,821 - - 1,821
Prepayments and other 1,470 - - 1,470
------------- ----------- ------------ ------------
60,929 141,902 141,901 60,930
------------- ----------- ------------ ------------
Property, Plant and Equipment:
Electric utility 590,153 - - 590,153
Less: Accumulated depreciation 195,804 - - 195,804
------------- ----------- ------------ ------------
394,349 - - 394,349
Construction work in progress 11,860 - - 11,860
------------- ----------- ------------ ------------
406,209 - - 406,209
------------- ----------- ------------ ------------
Deferred Debits and Other Assets:
Regulatory assets 283,702 - - 283,702
Prepaid pension 67,516 - - 67,516
Investments in subsidiary company, at equity 776 - 776 -
Other 15,212 3,092 - 18,304
------------- ----------- ------------ ------------
367,206 3,092 776 369,522
------------- ----------- ------------ ------------
Total Assets $ 834,344 $ 144,994 $ 142,677 $ 836,661
============= =========== ============ ============
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, 2002
(Thousands of Dollars)
Western WMECO
Massachusetts Funding
Electric Company LLC Eliminations Consolidated
---------------- ----------- ------------ ------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to banks $ 7,000 $ - $ - $ 7,000
Notes payable to affiliated companies 227,801 - 141,901 85,900
Accounts payable 17,730 - - 17,730
Accounts payable to affiliated companies 6,218 14 - 6,233
Accrued taxes 4,334 - - 4,334
Accrued interest 1,283 777 - 2,059
Other 7,320 685 - 8,005
------------- ----------- ------------- -------------
271,686 1,476 141,901 131,261
------------- ----------- ------------- -------------
Rate Reduction Bonds - 142,742 - 142,742
------------- ----------- ------------- -------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes 222,065 - - 222,065
Accumulated deferred investment tax credits 3,662 - - 3,662
Deferred contractual obligations 63,767 - - 63,767
Other 13,213 - - 13,213
------------- ----------- ------------- -------------
302,707 - - 302,707
------------- ----------- ------------- -------------
Capitalization:
Long-Term Debt 101,991 - - 101,991
------------- ----------- ------------- -------------
Common Stockholder's Equity:
Common stock 10,866 - - 10,866
Capital surplus, paid in 69,712 776 776 69,712
Retained earnings 77,476 - - 77,476
Accumulated other comprehensive loss (94) - - (94)
------------- ----------- ------------- -------------
Common Stockholder's Equity 157,960 776 776 157,960
------------- ----------- ------------- -------------
Total Capitalization 259,951 776 776 259,951
------------- ----------- ------------- -------------
Total Liabilities and Capitalization $ 834,344 $ 144,994 $ 142,677 $ 836,661
============= =========== ============= =============
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, 2002
(Thousands of Dollars)
Western WMECO
Massachusetts Funding
Electric Company LLC Eliminations Consolidated
---------------- ----------- ------------ ------------
Operating Revenues $ 369,487 $ 9,843 $ 9,843 $ 369,487
---------------- ------------ ------------ ------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power 181,485 - - 181,485
Other 49,039 9,843 9,843 49,039
Maintenance 14,499 - - 14,499
Depreciation 14,381 - - 14,381
Amortization of regulatory assets, net 39,712 - - 39,712
Taxes other than income taxes 10,688 - - 10,688
---------------- ------------ ------------ ------------
Total operating expenses 309,804 9,843 9,843 309,804
---------------- ------------ ------------ ------------
Operating Income 59,683 - - 59,683
---------------- ------------ ------------ ------------
Interest Expense:
Interest on long-term debt 2,942 - - 2,942
Interest on rate reduction bonds 9,587 - - 9,587
Other interest 1,857 - - 1,857
---------------- ------------ ------------ ------------
Interest expense, net 14,386 - - 14,386
---------------- ------------ ------------ ------------
Other Loss, net (850) - - (850)
---------------- ------------ ------------ ------------
Income Before Income Tax Expense 44,447 - - 44,447
Income Tax Expense 6,765 - - 6,765
---------------- ------------ ------------ ------------
Net Income $ 37,682 $ - $ - $ 37,682
================ ============ ============ ============
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, 2002
(Thousands of Dollars)
Western WMECO
Massachusetts Funding
Electric Company LLC Eliminations Consolidated
---------------- ----------- ------------ ------------
Balance at beginning of period $ 55,422 $ - $ - $ 55,422
Additions:
Net income 37,682 - - 37,682
Allocation of benefits - ESOP 381 - - 381
---------------- ----------- ------------ ------------
93,485 - - 93,485
---------------- ----------- ------------ ------------
Deductions:
Dividends declared:
Common stock $34.12 per share 16,009 - - 16,009
---------------- ----------- ------------ ------------
16,009 - - 16,009
---------------- ----------- ------------ ------------
Balance at end of period $ 77,476 $ - $ - $ 77,476
================ =========== ============ ============
WESTERN MASSACHUSETTS ELECTRIC COMPANY
AND SUBSIDIARY
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Western WMECO
Massachusetts Funding
Electric Company LLC Eliminations Consolidated
---------------- ----------- ------------ ------------
Balance at beginning of period $ 82,224 $ 776 $ 776 $ 82,224
Repurchase of common stock (12,123) - - (12,123)
Allocation of benefits - ESOP (520) - - (520)
Capital stock expenses, net 131 - - 131
---------------- ----------- ------------ ------------
Balance at end of period $ 69,712 $ 776 $ 776 $ 69,712
================ =========== ============ ============
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, 2002
(Thousands of Dollars)
Western
Massachusetts WMECO
Electric Funding
Company LLC Eliminations Consolidated
------------- --------- ------------ ------------
Operating Activities:
Net income $ 37,682 $ - $ - $ 37,682
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 14,381 - - 14,381
Deferred income taxes and investment tax credits, net (26,952) - - (26,952)
Amortization 39,712 - - 39,712
Deferral of recoverable energy costs, net (529) - - (529)
Prepaid pension (13,290) - - (13,290)
Net other uses of cash (8,219) (2) - (8,221)
Changes in working capital:
Receivables and unbilled revenues, net 1,217 - 18 1,199
Fuel, materials and supplies (365) - - (365)
Accounts payable (14,004) (4) (18) (13,989)
Accrued taxes 643 - - 643
Other working capital (excludes cash) (2,332) (18) - (2,351)
------------- --------- ------------ ------------
Net cash flows provided by/(used in) operating activities 27,944 (24) - 27,920
------------- --------- ------------ ------------
Investing Activities:
Investments in plant:
Electric utility plant (23,428) - - (23,428)
Nuclear fuel - - - -
------------- --------- ------------ ------------
Cash flows used for investments in plant (23,428) - - (23,428)
NU system money pool borrowing 67,200 9,500 - 76,700
Other investment activities, net 838 99 - 937
------------- --------- ------------ ------------
Net cash flows provided by investing activities 44,610 9,599 - 54,209
------------- --------- ------------ ------------
Financing Activities:
Repurchase of common stock (13,999) - - (13,999)
Retirement of rate reduction bonds - (9,575) - (9,575)
Net decrease in short-term debt (43,000) - - (43,000)
Cash dividends on common stock (16,009) - - (16,009)
Other financing activities, net (22) - - (22)
------------- --------- ------------ ------------
Net cash flows used in financing activities (73,030) (9,575) - (82,605)
------------- --------- ------------ ------------
Net decrease in cash for the year (476) - - (476)
Cash and cash equivalents - beginning of year 598 1 - 599
------------- --------- ------------ ------------
Cash and cash equivalents - end of year $ 122 $ 1 $ - $ 123
============= ========= ============ ============
Supplemental Cash Flow Information:
Cash paid during the year for:
Interest, net of amounts capitalized $ 14,882 $ 52 $ - $ 14,934
============= ========= ============ ============
Income taxes $ 32,522 $ - $ - $ 32,522
============= ========= ============ ============
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, 2002
(Thousands of Dollars)
Holyoke Holyoke
Water Power and
Power Electric
Company Company Eliminations Consolidated
----------- --------- ------------ ------------
ASSETS
------
Current Assets:
Cash $ 80 $ - $ - $ 80
Receivables, net 66 - - 66
Accounts receivable from affiliated companies 3,108 3,487 3,130 3,465
Taxes receivable 895 - 17 879
Notes receivable from affiliated companies 2,100 - - 2,100
Fuel, materials, and supplies, at average cost 7,361 - - 7,361
Prepayments and other 157 13 - 170
----------- --------- ------------ ------------
13,767 3,500 3,147 14,121
----------- --------- ------------ ------------
Property, Plant and Equipment:
Competitive energy 35,310 1,418 - 36,728
Less: Accumulated depreciation 32,431 1,076 - 33,507
----------- --------- ------------ ------------
2,879 342 - 3,221
Construction work in progress 2,042 - - 2,042
----------- --------- ------------ ------------
4,921 342 - 5,263
----------- --------- ------------ ------------
Deferred Debits and Other Assets:
Deferred financing costs 717 - - 717
Prepaid pension 2,515 - - 2,515
Investments in subsidiary company, at equity 707 - 707 -
Other 2,060 38 38 2,060
----------- --------- ------------ ------------
5,999 38 745 5,292
----------- --------- ------------ ------------
Total Assets $ 24,687 $ 3,880 $ 3,892 $ 24,676
=========== ========= ============ ============
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, 2002
(Thousands of Dollars)
Holyoke Holyoke
Water Power and
Power Electric
Company Company Eliminations Consolidated
----------- --------- ------------ ------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Accounts payable $ 1,779 $ 67 $ - $ 1,846
Accounts payable to affiliated companies 1,564 3,077 3,130 1,512
Accrued taxes 162 16 16 162
Other 22 12 - 34
----------- --------- ------------ ------------
3,527 3,172 3,146 3,554
----------- --------- ------------ ------------
Deferred Credits and Other Liabilities:
Accumulated deferred investment tax credits 1,723 - 38 1,685
Other 3,613 167 167 3,613
----------- --------- ------------ ------------
5,336 167 205 5,298
----------- --------- ------------ ------------
Capitalization:
Advances from parent companies 9,600 424 424 9,600
----------- --------- ------------ ------------
Common Stockholder's Equity:
Common stock 2,400 485 485 2,400
Capital surplus, paid in 5,969 - - 5,969
Accumulated deficit (2,145) (368) (368) (2,145)
----------- --------- ------------ ------------
Common Stockholder's Equity 6,224 117 117 6,224
----------- --------- ------------ ------------
Total Capitalization 15,824 541 541 15,824
----------- --------- ------------ ------------
Total Liabilities and Capitalization $ 24,687 $ 3,880 $ 3,892 $ 24,676
=========== ========= ============ ============
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, 2002
(Thousands of Dollars)
Holyoke Holyoke
Water Power and
Power Electric
Company Company Eliminations Consolidated
----------- ---------- ------------ ------------
Operating Revenues $ 37,974 $37,764 $ 37,492 $ 38,246
----------- --------- ------------ ------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power 25,374 37,591 37,492 25,473
Other 5,799 178 - 5,977
Maintenance 3,903 - - 3,903
Depreciation 628 24 - 652
Amortization (2) - - (2)
Taxes other than income taxes 1,504 42 - 1,546
----------- --------- ------------ ------------
Total operating expenses 37,206 37,835 37,492 37,549
----------- --------- ------------ ------------
Operating Income/(Loss) 768 (71) - 697
----------- --------- ------------ ------------
Interest Expense:
Interest on long-term debt (23) - - (23)
Other interest 273 21 21 273
----------- --------- ------------ ------------
Interest expense, net 250 21 21 250
----------- --------- ------------ ------------
Other Loss, Net
Equity in earnings of subsidiary (64) - (64) -
Other, net (1,412) - 21 (1,433)
----------- --------- ------------ ------------
Other loss, net (1,476) - (43) (1,433)
----------- --------- ------------ ------------
Loss Before Income Tax Benefit (958) (92) (64) (986)
Income Tax Benefit (18) (28) - (46)
----------- --------- ------------ ------------
Net Loss $ (940) $ (64) $ (64) $ (940)
=========== ========= ============ ============
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, 2002
(Thousands of Dollars)
Holyoke Holyoke
Water Power and
Power Electric
Company Company Eliminations Consolidated
----------- ---------- ------------ ------------
Balance at beginning of period $ (1,233) $ (304) $ (304) $ (1,233)
Additions:
Net loss (940) (64) (64) (940)
Allocation of benefits - ESOP 28 - - 28
----------- --------- ----------- -------------
Balance at end of period $ (2,145) $ (368) $ (368) $ (2,145)
=========== ========= =========== =============
HOLYOKE WATER POWER COMPANY
AND SUBSIDIARY
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Holyoke Holyoke
Water Power and
Power Electric
Company Company Eliminations Consolidated
----------- ---------- ------------ ------------
Balance at beginning of period $ 6,000 $ - $ - $ 6,000
Allocation of benefits - ESOP (31) - - (31)
----------- --------- ----------- ------------
Balance at end of period $ 5,969 $ - $ - $ 5,969
=========== ========= =========== ============
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, 2002
(Thousands of Dollars)
Holyoke
Holyoke Power and
Water Power Electric
Company Company Eliminations Consolidated
----------- --------- ------------ ------------
Operating Activities:
Net loss $ (940) $ (64) $ (64) $ (940)
Adjustments to reconcile to net cash
used in operating activities:
Depreciation 628 24 - 652
Deferred income taxes and investment tax credits, net 715 (2) - 713
Amortization (2) - - (2)
Prepaid pension (1) - - (1)
Net other (uses)/sources of cash (423) 19 22 (427)
Changes in working capital:
Receivables and unbilled revenues, net 717 545 545 718
Fuel, materials and supplies (1,204) - - (1,204)
Accounts payable (54) (3,674) (545) (3,182)
Accrued taxes 162 (49) (49) 162
Other working capital (excludes cash) 155 71 48 177
----------- --------- ------------ ------------
Net cash flows used in operating activities (247) (3,130) (43) (3,334)
----------- --------- ------------ ------------
Investing Activities:
Competitive energy assets (954) - - (954)
NU system Money Pool borrowing 1,200 - - 1,200
Other investment activities, net 81 - 43 38
----------- --------- ------------ ------------
Net cash flows provided by investing activities 327 - 43 284
----------- --------- ------------ ------------
Net increase/(decrease) in cash for the year 80 (3,130) - (3,050)
Cash - beginning of year - 3,130 - 3,130
----------- --------- ------------ ------------
Cash - end of year $ 80 $ - $ - $ 80
=========== ========= ============ ============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 325 $ 21 $ 21 $ 325
=========== ========= ============ ============
Income taxes $ (417) $ 11 $ - $ (406)
=========== ========= ============ ============
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, 2002
(Thousands of Dollars)
Yankee
Energy Yankee Gas NorConn
System, Services Properties Housatonic
Inc. Company Inc. Corporation
----------- ----------- ---------- ------------
ASSETS
------
Current Assets:
Cash $ 512 $ - $ - $ 86
Receivables, net - 46,518 - -
Accounts receivable from affiliated companies 38 6,100 24 -
Taxes receivable - - - -
Unbilled revenues - 43,001 - -
Notes receivable from affiliated companies 1,288 - 281 -
Fuel, materials, and supplies, at average cost - 16,702 - -
Derivative assets - 2,252 - -
Prepayments and other - 4,471 - -
----------- ----------- ---------- ------------
1,838 119,044 305 86
----------- ----------- ---------- ------------
Property, Plant and Equipment:
Gas utility - 679,055 - -
Less: Accumulated depreciation - 281,771 - -
----------- ----------- ---------- ------------
- 397,284 - -
Construction work in progress - 58,011 - -
----------- ----------- ---------- ------------
- 455,295 - -
----------- ----------- ---------- ------------
Deferred Debits and Other Assets:
Regulatory assets - 54,722 - -
Goodwill and other purchased intangible assets - 287,591 - -
Prepaid pension - 43,330 - -
Investments in subsidiary companies, at equity 522,081 - - -
Other 3,531 719 1,916 -
----------- ----------- ---------- ------------
525,612 386,362 1,916 -
----------- ----------- ---------- ------------
Total Assets $ 527,450 $ 960,701 $ 2,221 $ 86
=========== =========== ========== ============
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, 2002
(Thousands of Dollars)
Yankee Yankee
Energy Energy R.M.
Financial Services Services
Services Company Company Eliminations Consolidated
--------- --------- ---------- ------------ ------------
ASSETS
------
Current Assets:
Cash $ 44 $ - $ - $ - $ 642
Receivables, net 4,600 - - - 51,119
Accounts receivable from affiliated companies 2 454 173 1,152 5,639
Taxes receivable - 188 - 188 -
Unbilled revenues - - - - 43,001
Notes receivable from affiliated companies - - - 1,569 -
Fuel, materials, and supplies, at average cost - - - - 16,702
Derivative assets - - - - 2,252
Prepayments and other 10 - - - 4,480
--------- --------- ---------- ------------ ------------
4,656 642 173 2,909 123,835
--------- --------- ---------- ------------ ------------
Property, Plant and Equipment:
Gas utility - - - - 679,055
Less: Accumulated depreciation - - - - 281,771
--------- --------- ---------- ------------ ------------
- - - - 397,284
Construction work in progress - - - - 58,011
--------- --------- ---------- ------------ ------------
- - - - 455,295
--------- --------- ---------- ------------ ------------
Deferred Debits and Other Assets:
Regulatory assets - - - - 54,722
Goodwill and other purchased intangible assets - - - - 287,591
Prepaid pension - - - - 43,330
Investments in subsidiary companies, at equity - - - 522,081 -
Other 129 5,586 12,313 4,495 19,698
--------- --------- ---------- ------------ ------------
129 5,586 12,313 526,576 405,341
--------- --------- ---------- ------------ ------------
Total Assets $ 4,785 $ 6,228 $ 12,486 $ 529,485 $ 984,471
========= ========= ========== ============ ============
F-42
YANKEE ENERGY SYSTEM, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2002
(Thousands of Dollars)
Yankee
Energy Yankee Gas NorConn
System, Services Properties Housatonic
Inc. Company Inc. Corporation
----------- ----------- ---------- ------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to affiliated companies $ - $ 66,000 $ - $ -
Long-term debt - current portion - 950 1,400 -
Accounts payable 279 36,343 33 -
Accounts payable to affiliated companies 28 4,936 2 -
Accrued taxes 77 8,496 75 278
Accrued interest - 3,348 7 -
Other - 23,734 - -
----------- ----------- --------- ------------
384 143,807 1,517 278
----------- ----------- --------- ------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes - 90,168 314 -
Accumulated deferred investment tax credits - 6,722 - -
Other - 65,665 - -
----------- ----------- --------- ------------
- 162,555 314 -
----------- ----------- --------- ------------
Capitalization:
Long-Term Debt - 151,376 - -
----------- ----------- --------- ------------
Common Stockholder's Equity:
Common stock - 5 1 10
Capital surplus, paid in 484,769 465,876 9 2
Retained earnings/accumulated deficit 40,943 35,728 380 (204)
Accumulated other comprehensive income 1,354 1,354 - -
----------- ----------- --------- ------------
Common Stockholder's Equity 527,066 502,963 390 (192)
----------- ----------- --------- ------------
Total Capitalization 527,066 654,339 390 (192)
----------- ----------- --------- ------------
Total Liabilities and Capitalization $ 527,450 $ 960,701 $ 2,221 $ 86
=========== =========== ========= ============
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, 2002
(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 affiliated companies $ 3,200 $ 769 $ - $ 1,569 $ 68,400
Long-term debt - current portion - - - - 2,350
Accounts payable 77 2 - - 36,734
Accounts payable to affiliated companies 13 486 - 1,152 4,313
Accrued taxes 18 - - 188 8,756
Accrued interest - - - - 3,355
Other - 7 - - 23,741
--------- --------- ---------- ------------- -------------
3,308 1,264 - 2,909 147,649
--------- --------- ---------- ------------- -------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes - - - 4,467 86,016
Accumulated deferred investment tax credits - - - - 6,722
Other - 5 - 28 65,642
--------- --------- ---------- ------------- -------------
- 5 - 4,495 158,380
--------- --------- ---------- ------------- -------------
Capitalization:
Long-Term Debt - - - - 151,376
--------- --------- ---------- ------------- -------------
Common Stockholder's Equity:
Common stock 1 1 1 19 -
Capital surplus, paid in 1,241 7,881 13,798 488,805 484,769
Retained earnings/accumulated deficit 235 (2,923) (1,313) 31,903 40,943
Accumulated other comprehensive income - - - 1,354 1,354
--------- --------- ---------- ------------- -------------
Common Stockholder's Equity 1,477 4,959 12,486 522,081 527,066
--------- --------- ---------- ------------- -------------
Total Capitalization 1,477 4,959 12,486 522,081 678,442
--------- --------- ---------- ------------- -------------
Total Liabilities and Capitalization $ 4,785 $ 6,228 $ 12,486 $ 529,485 $ 984,471
========= ========= ========== ============= =============
F-44
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Yankee
Energy Yankee Gas NorConn
System, Services Properties Housatonic
Inc. Company Inc. Corporation
----------- ----------- ---------- ------------
Operating Revenues $ - $ 293,256 $ 285 $ -
----------- ------------ ---------- ------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power - 150,240 - -
Other 145 50,940 15 (718)
Maintenance - 7,785 - -
Depreciation - 22,955 89 -
Amortization of regulatory assets, net - 1,057 - -
Taxes other than income taxes 2 20,408 - -
----------- ------------ ---------- ------------
Total operating expenses 147 253,385 104 (718)
----------- ------------ ---------- ------------
Operating (Loss)/Income (147) 39,871 181 718
----------- ------------ ---------- ------------
Interest Expense:
Interest on long-term debt - 11,795 90 -
Other interest 310 2,366 6 -
----------- ------------ ---------- ------------
Interest expense, net 310 14,161 96 -
----------- ------------ ---------- ------------
Other Income/(Loss), Net
Equity in earnings of subsidiaries 15,996 - - -
Other, net 304 (809) 36 -
----------- ------------ ---------- ------------
Other income/(loss), net 16,300 (809) 36 -
----------- ------------ ---------- ------------
Income/(Loss) Before Income Tax (Benefit)/Expense 15,843 24,901 121 718
Income Tax (Benefit)/Expense (52) 7,329 58 284
----------- ------------ ---------- ------------
Net Income/(Loss) $ 15,895 $ 17,572 $ 63 $ 434
=========== ============ ========== ============
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, 2002
(Thousands of Dollars)
Yankee Yankee
Energy Energy R.M.
Financial Services Services
Services Company Company Eliminations Consolidated
--------- --------- ---------- ------------ ------------
Operating Revenues $ 56 $ 567 $ - $ 285 $ 293,879
--------- --------- --------- ------------ ------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power - - - - 150,240
Other 149 786 - 285 51,032
Maintenance - - - - 7,785
Depreciation 46 - - - 23,090
Amortization of regulatory assets, net - 405 - - 1,462
Taxes other than income taxes - - - - 20,410
--------- --------- --------- ------------ ------------
Total operating expenses 195 1,191 - 285 254,019
--------- --------- --------- ------------ ------------
Operating (Loss)/Income (139) (624) - - 39,860
--------- --------- --------- ------------ ------------
Interest Expense:
Interest on long-term debt - - - - 11,885
Other interest 55 65 - 90 2,712
--------- --------- --------- ------------ ------------
Interest expense, net 55 65 - 90 14,597
--------- --------- --------- ------------ ------------
Other Income/(Loss), Net
Equity in earnings of subsidiaries - - - 15,996 -
Other, net 348 - (1,303) 90 (1,515)
--------- --------- --------- ------------ ------------
Other income/(loss), net 348 - (1,303) 16,086 (1,515)
--------- --------- --------- ------------ ------------
Income/(Loss) Before Income Tax (Benefit)/Expense 154 (689) (1,303) 15,996 23,748
Income Tax (Benefit)/Expense 108 583 (456) - 7,853
--------- --------- --------- ------------ ------------
Net Income/(Loss) $ 46 $(1,272) $ (847) $ 15,996 $ 15,895
========= ========= ========= ============ ============
F-46
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Yankee
Energy Yankee Gas NorConn
System, Services Properties Housatonic
Inc. Company Inc. Corporation
----------- ----------- ---------- ------------
Balance at beginning of period $ 25,048 $ 27,103 $ 317 $ (638)
Additions:
Net income/(loss) 15,895 17,572 63 434
Allocation of benefits - ESOP - 53 - -
----------- ----------- ---------- -------------
40,943 44,728 380 (204)
----------- ----------- ---------- -------------
Deductions:
Dividend declared:
Common stock $9,000 per share - 9,000 - -
----------- ----------- ---------- -------------
- 9,000 - -
----------- ----------- ---------- -------------
Balance at end of period $ 40,943 $ 35,728 $ 380 $ (204)
=========== =========== ========== =============
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Yankee
Energy Yankee Gas NorConn
System, Services Properties Housatonic
Inc. Company Inc. Corporation
----------- ----------- ---------- ------------
Balance at beginning of period $ 484,888 $ 466,048 $ 9 $ 2
Allocation of benefits - ESOP (119) (172) - -
----------- ----------- ---------- ------------
Balance at end of period $ 484,769 $ 465,876 $ 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, 2002
(Thousands of Dollars)
Yankee Yankee
Energy Energy R.M.
Financial Services Services
Services Company Company Eliminations Consolidated
------------ --------- ---------- ------------ ------------
Balance at beginning of period $ 189 $(1,651) $ (466) $ 24,854 $ 25,048
Additions:
Net income/(loss) 46 (1,272) (847) 15,996 15,895
Allocation of benefits - ESOP - - - 53 -
--------- --------- ---------- ------------ ------------
235 (2,923) (1,313) 40,903 40,943
--------- --------- ---------- ------------ ------------
Deductions:
Dividend declared:
Common stock $9,000 per share - - - 9,000 -
--------- --------- ---------- ------------ ------------
- - - 9,000 -
--------- --------- ---------- ------------ ------------
Balance at end of period $ 235 $(2,923) $ (1,313) $ 31,903 $ 40,943
========= ========= ========== ============ ============
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Yankee Yankee
Energy Energy R.M.
Financial Services Services
Services Company Company Eliminations Consolidated
--------- --------- ---------- ------------ ------------
Balance at beginning of period $ 1,241 $ 7,881 $ 13,798 $ 488,977 $ 484,888
Allocation of benefits - ESOP - - - (172) (119)
--------- --------- ---------- ------------ -------------
Balance at end of period $ 1,241 $ 7,881 $ 13,798 $ 488,805 $ 484,769
========= ========= ========== ============ =============
F-48
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Yankee
Energy Yankee Gas NorConn
System, Services Properties,
Inc. Company Inc.
---------- ---------- -----------
Operating Activities:
Net income/(loss) $ 15,895 $ 17,572 $ 63
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation - 22,955 89
Deferred income taxes and investment tax credits, net (21) 4,175 (26)
Amortization - 1,057 -
Deferral of recoverable energy costs - (13,841) -
Prepaid pension - (573) -
Net other sources/(uses) of cash 248 2,520 (87)
Changes in working capital:
Receivables and unbilled revenues, net (38) (4,101) 1
Fuel, materials and supplies - (12,822) -
Accounts payable (11,031) 17,832 (117)
Accrued taxes (238) 458 75
Other working capital (excludes cash) 2,906 30,225 51
---------- ---------- -----------
Net cash flows provided by/(used in) operating activities 7,721 65,457 49
---------- ---------- -----------
Investing Activities:
Investments in plant - (70,647) -
NU system Money Pool borrowing/(lending) 2,382 63,500 65
Other investment activities, net (9,594) 1,510 (39)
---------- ---------- -----------
Net cash flows (used in)/provided by investing activities (7,212) (5,637) 26
---------- ---------- -----------
Financing Activities:
Net decrease in short-term debt - (50,000) -
Reacquistions and retirements of long-term debt - (950) (100)
Cash dividends on common stock - (9,000) -
---------- ---------- -----------
Net cash flows used in financing activities - (59,950) (100)
---------- ---------- -----------
Net increase/(decrease) in cash for the year 509 (130) (25)
Cash - beginning of year 3 130 25
---------- ---------- -----------
Cash - end of year $ 512 $ - $ -
========== ========== ===========
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 34 $ 13,911 $ 96
========== ========== ===========
Income taxes $ 34 $ 3,799 $ (43)
========== ========== ===========
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, 2002
(Thousands of Dollars)
Yankee
Energy Yankee
Financial Energy R.M.
Housatonic Services Services Services
Corporation Company Company Inc. Eliminations
----------- --------- ---------- ---------- ------------
Operating Activities:
Net income/(loss) $ 434 $ 46 $ (1,272) $ (847) $ 15,996
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation - 46 - - -
Deferred income taxes and investment tax credits, net - 2 963 (456) -
Amortization - - 405 - -
Deferral of recoverable energy costs - - - - -
Prepaid pension - - - - -
Net other sources/(uses) of cash - (22) (1) (1) (119)
Changes in working capital:
Receivables and unbilled revenues, net - (139) 6,526 - 10,323
Fuel, materials and supplies - - - - -
Accounts payable (721) 8 488 - (10,322)
Accrued taxes 278 (2) - - (360)
Other working capital (excludes cash) 95 - 187 - 3,078
----------- --------- ---------- ---------- ------------
Net cash flows provided by/(used in) operating activities 86 (61) 7,296 (1,304) 18,596
----------- --------- ---------- ---------- ------------
Investing Activities:
Investments in plant - - - - -
NU system Money Pool borrowing/(lending) - - (2,746) - -
Other investment activities, net - 22 (4,701) 1,304 (9,596)
----------- --------- ---------- ---------- ------------
Net cash flows (used in)/provided by investing activities - 22 (7,447) 1,304 (9,596)
----------- --------- ---------- ---------- ------------
Financing Activities:
Net decrease in short-term debt - - - - -
Reacquistions and retirements of long-term debt - - - - -
Cash dividends on common stock - - - - (9,000)
----------- --------- ---------- ---------- ------------
Net cash flows used in financing activities - - - - (9,000)
----------- --------- ---------- ---------- ------------
Net increase/(decrease) in cash for the year 86 (39) (151) - -
Cash - beginning of year - 83 151 - -
----------- --------- ---------- ---------- ------------
Cash - end of year $ 86 $ 44 $ - $ - $ -
=========== ========= ========== ========== ============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ - $ 55 $ 64 $ - $ 90
=========== ========= ========== ========== ============
Income taxes $ 83 $ 109 $ (317) $ - $ -
=========== ========= ========== ========== ============
YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Consolidated
------------
Operating Activities:
Net income/(loss) $ 15,895
Adjustments to reconcile to net cash
provided by/(used in) operating activities:
Depreciation 23,090
Deferred income taxes and investment tax credits, net 4,637
Amortization 1,462
Deferral of recoverable energy costs (13,841)
Prepaid pension (573)
Net other sources/(uses) of cash 2,776
Changes in working capital:
Receivables and unbilled revenues, net (8,074)
Fuel, materials and supplies (12,822)
Accounts payable 16,783
Accrued taxes 931
Other working capital (excludes cash) 30,384
------------
Net cash flows provided by/(used in) operating activities 60,648
------------
Investing Activities:
Investments in plant (70,647)
NU system Money Pool borrowing/(lending) 63,200
Other investment activities, net (1,902)
------------
Net cash flows (used in)/provided by investing activities (9,349)
------------
Financing Activities:
Net decrease in short-term debt (50,000)
Reacquistions and retirements of long-term debt (1,050)
Cash dividends on common stock -
------------
Net cash flows used in financing activities (51,050)
------------
Net increase/(decrease) in cash for the year 249
Cash - beginning of year 393
------------
Cash - end of year $ 642
============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 14,070
============
Income taxes $ 3,665
============
F-50
NU ENTERPRISES, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2002
(Thousands of Dollars)
Northeast
Generation Select
Services Energy Select
NU Northeast Company Portland Energy, Inc.
Enterprises, Generation (consolidated) Pipeline, Inc. (consolidated)
Inc. Company (b) (c) (b)
------------- ---------- -------------- -------------- --------------
ASSETS
------
Current Assets:
Cash $ 64 $ 18,248 $ 2,257 $ - $ 14,532
Receivables, net - 1,441 17,600 - 454,204
Accounts receivable from affiliated companies - 12,124 4,098 - 113,028
Taxes receivable 70 1,587 690 - -
Unbilled revenues - - 4,297 - -
Notes receivable from affiliated companies 1,300 10,000 - - -
Fuel, materials, and supplies, at average cost - 2,164 322 - -
Special deposits - - - - 2,455
Derivative assets - - - - 128,676
Prepayments and other 3 780 1,998 - 76,203
------------- ---------- -------------- ------------- --------------
1,437 46,344 31,262 - 789,098
------------- ---------- -------------- ------------- --------------
Property, Plant and Equipment:
Competitive energy - 799,585 3,982 - 13,068
Less: Accumulated depreciation - 19,379 1,046 - 7,624
------------- ---------- -------------- ------------- --------------
- 780,206 2,936 - 5,444
Construction work in progress - 21,085 508 - 3,965
------------- ---------- -------------- ------------- --------------
- 801,291 3,444 - 9,409
------------- ---------- -------------- ------------- --------------
Deferred Debits and Other Assets:
Goodwill and other purchased intangible assets, net - - 14,633 - 21,232
Prepaid pension - - 926 - 1,884
Investments in subsidiary companies, at equity 1,239,307 - - - -
Other 8,505 39,776 1,309 - 57,005
------------- ---------- -------------- ------------- --------------
1,247,812 39,776 16,868 - 80,121
------------- ---------- -------------- ------------- --------------
Total Assets $ 1,249,249 $887,411 $ 51,574 $ - $ 878,628
============= ========== ============== ============= ==============
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.
(c) Select Energy Portland Pipeline, Inc. was dissolved on October 28, 2002.
F-51
NU ENTERPRISES, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2002
(Thousands of Dollars)
Select
Energy
Mode 1 Services, Inc.
Communications, (consolidated) Woods Network
Inc. (b) Services, Inc. Eliminations Consolidated
--------------- -------------- -------------- ------------ ------------
ASSETS
------
Current Assets:
Cash $ - $ 28,925 $ 930 $ - $ 64,956
Receivables, net 11 19,715 2,145 32,189 462,926
Accounts receivable from affiliated companies - - 438 14,266 115,422
Taxes receivable 1,442 - - 3,789 -
Unbilled revenues - - - (32,189) 36,487
Notes receivable from affiliated companies 1,000 - - - 12,300
Fuel, materials, and supplies, at average cost - 331 52 - 2,870
Special deposits - - - - 2,455
Derivative assets - - - - 128,676
Prepayments and other 1 1,692 4 - 80,681
--------------- -------------- -------------- ------------ ------------
2,454 50,663 3,569 18,055 906,773
--------------- -------------- -------------- ------------ ------------
Property, Plant and Equipment:
Competitive energy 906 12,046 192 - 829,779
Less: Accumulated depreciation 97 8,463 - - 36,608
--------------- -------------- -------------- ------------ ------------
809 3,583 192 - 793,171
Construction work in progress 118 - - - 25,677
--------------- -------------- -------------- ------------ ------------
927 3,583 192 - 818,848
--------------- -------------- -------------- ------------ ------------
Deferred Debits and Other Assets:
Goodwill and other purchased intangible assets, net - 17,973 4,438 - 58,276
Prepaid pension - - - - 2,810
Investments in subsidiary companies, at equity - - - 1,239,307 -
Other 11,179 53,682 - (3,494) 174,949
--------------- -------------- -------------- ------------ ------------
11,179 71,655 4,438 1,235,813 236,035
--------------- -------------- -------------- ------------ ------------
Total Assets $ 14,560 $ 125,901 $ 8,199 $1,253,868 $1,961,656
=============== ============== ============== ============ ============
F-52
NU ENTERPRISES, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2002
(Thousands of Dollars)
Northeast
Generation Select
Services Energy Select
NU Northeast Company Portland Energy, Inc.
Enterprises, Generation (consolidated) Pipeline, Inc. (consolidated)
Inc. Company (b) (c) (b)
------------ ---------- -------------- -------------- ---------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to affiliated companies $ - $ - $ 13,500 $ - $ 217,200
Long-term debt - current portion - 27,000 - - -
Accounts payable - 1,559 6,642 - 411,081
Accounts payable to affiliated companies 39 1,719 2,614 - 8,948
Accrued taxes - 893 - - 22,245
Accrued interest - 7,070 - - 27
Derivative liabilities - - - - 63,900
Other - 482 1,864 - 27,926
------------ ---------- -------------- ------------- --------------
39 38,723 24,620 - 751,327
------------ ---------- -------------- ------------- --------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes - 21,005 - - 21,542
Other - 2 1,959 - 49,131
------------ ---------- -------------- ------------- --------------
- 21,007 1,959 - 70,673
------------ ---------- -------------- ------------- --------------
Capitalization:
Long-Term Debt - 389,000 - - -
------------ ---------- -------------- ------------- --------------
Advances from parent companies - - 9,450 - 20,699
------------ ---------- -------------- ------------- --------------
Common Stockholder's Equity:
Common stock - - - - -
Capital surplus, paid in 1,365,959 408,098 15,549 - 249,337
(Accumulated deficit)/Retained earnings (127,445) 32,259 9 - (225,781)
Accumulated other comprehensive income/(loss) 10,696 (1,676) (13) - 12,373
------------ ---------- -------------- ------------- --------------
Common Stockholder's Equity 1,249,210 438,681 15,545 - 35,929
------------ ---------- -------------- ------------- --------------
Total Capitalization 1,249,210 827,681 24,995 - 56,628
------------ ---------- -------------- ------------- --------------
Total Liabilities and Capitalization $1,249,249 $887,411 $ 51,574 $ - $ 878,628
============ ========== ============== ============= ==============
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.
(c) Select Energy Portland Pipeline, Inc. was dissolved on October 28, 2002.
F-53
NU ENTERPRISES, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2002
(Thousands of Dollars)
Select
Energy
Mode 1 Services, Inc.
Communications, (consolidated) Woods Network
Inc. (b) Services, Inc. Eliminations Consolidated
--------------- -------------- -------------- ------------ ------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to affiliated companies $ - $ 6,450 $ - $ - $ 237,150
Long-term debt - current portion - 2,262 - - 29,262
Accounts payable 704 6,156 668 - 426,811
Accounts payable to affiliated companies 122 519 94 3,276 10,778
Accrued taxes - 350 114 3,789 19,813
Accrued interest - 719 - - 7,816
Derivative liabilities - - - - 63,900
Other 1 7,044 39 - 37,355
--------------- -------------- -------------- ------------ ------------
827 23,500 915 7,065 832,885
--------------- -------------- -------------- ------------ ------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes - 994 - 7,495 36,047
Other 1,730 - 11 - 52,833
--------------- -------------- -------------- ------------ ------------
1,730 994 11 7,495 88,880
--------------- -------------- -------------- ------------ ------------
Capitalization:
Long-Term Debt - 70,376 - - 459,377
--------------- -------------- -------------- ------------ ------------
Advances from parent companies - - 4,400 250 34,299
--------------- -------------- -------------- ------------ ------------
Common Stockholder's Equity:
Common stock - - - 1 -
Capital surplus, paid in 29,357 25,097 2,650 1,433,071 662,976
(Accumulated deficit)/Retained earnings (17,354) 5,934 223 (204,710) (127,445)
Accumulated other comprehensive income/(loss) - - - 10,696 10,684
--------------- -------------- -------------- ------------ ------------
Common Stockholder's Equity 12,003 31,031 2,873 1,239,058 546,215
--------------- -------------- -------------- ------------ ------------
Total Capitalization 12,003 101,407 7,273 1,239,308 1,039,891
--------------- -------------- -------------- ------------ ------------
Total Liabilities and Capitalization $ 14,560 $ 125,901 $ 8,199 $1,253,868 $1,961,656
=============== ============== ============== ============ ============
F-54
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Northeast
Generation Select
Services Energy Select
NU Northeast Company Portland Energy, Inc.
Enterprises, Generation (consolidated) Pipeline, Inc. (consolidated)
Inc. Company (b) (c) (b)
--------------- --------------- ------------ ------------- --------------
Operating Revenues $ - $ 131,897 $ 115,166 $ - $ 1,485,583
--------------- --------------- ------------ ------------- --------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power - - 2,165 - 1,534,186
Other 1,042 12,234 44,218 - 64,866
Maintenance - 12,892 71,464 - 39
Depreciation - 14,091 210 - 5,756
Amortization - - 44 - 3,119
Taxes other than income taxes 11 9,825 1,884 - 2,505
--------------- --------------- ------------ ------------- --------------
Total operating expenses 1,053 49,042 119,985 - 1,610,471
--------------- --------------- ------------ ------------- --------------
Operating (Loss)/Income (1,053) 82,855 (4,819) - (124,888)
--------------- --------------- ------------ ------------- --------------
Interest Expense:
Interest on long-term debt - 33,203 - - -
Other interest 4 13 617 - 5,948
--------------- --------------- ------------ ------------- --------------
Interest expense, net 4 33,216 617 - 5,948
--------------- --------------- ------------ ------------- --------------
Other (Loss)/Income, Net
Equity in loss of subsidiaries (60,206) - - - -
Other, net (2,620) 774 (45) - 279
--------------- --------------- ------------ ------------- --------------
Other (loss)/income, net (62,826) 774 (45) - 279
--------------- --------------- ------------ ------------- --------------
(Loss)/Income Before Income Tax (Benefit)/Expense (63,883) 50,413 (5,481) - (130,557)
Income Tax (Benefit)/Expense (1,363) 20,007 (2,256) - (48,679)
--------------- --------------- ------------ ------------- --------------
Net (Loss)/Income $ (62,520) $ 30,406 $ (3,225) $ - $ (81,878)
=============== =============== ============ ============= ==============
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.
(c) Select Energy Portland Pipeline, Inc. was dissolved
on October 28, 2002.
F-55
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Select Energy
Mode 1 Services, Inc.
Communications, (consolidated) Woods Network
Inc. (b) Services, Inc. Eliminations Consolidated
--------------- ------------ ---------------- ------------- -------------
Operating Revenues $ 194 $ 99,408 $ 6,064 $ 157,975 $ 1,680,337
--------------- ------------ ---------------- ------------- -------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power - - - 130,149 1,406,202
Other 554 92,927 652 15,032 201,460
Maintenance - 492 4,918 12,794 77,012
Depreciation 36 1,339 11 3,637 17,805
Amortization - - - - 3,163
Taxes other than income taxes 53 796 30 - 15,105
--------------- ------------ ---------------- ------------- -------------
Total operating expenses 643 95,554 5,611 161,612 1,720,747
--------------- ------------ ---------------- ------------- -------------
Operating (Loss)/Income (449) 3,854 453 (3,637) (40,410)
--------------- ------------ ---------------- ------------- -------------
Interest Expense:
Interest on long-term debt - - - - 33,203
Other interest 2 3,699 120 - 10,403
--------------- ------------ ---------------- ------------- -------------
Interest expense, net 2 3,699 120 - 43,606
--------------- ------------ ---------------- ------------- -------------
Other (Loss)/Income, Net
Equity in loss of subsidiaries - - - (60,206) -
Other, net (14,528) 4,686 5 3,656 (15,104)
--------------- ------------ ---------------- ------------- -------------
Other (loss)/income, net (14,528) 4,686 5 (56,550) (15,104)
--------------- ------------ ---------------- ------------- -------------
(Loss)/Income Before Income Tax (Benefit)/Expense (14,979) 4,841 338 (60,187) (99,120)
Income Tax (Benefit)/Expense (6,244) 1,838 115 19 (36,600)
--------------- ------------ ---------------- ------------- -------------
Net (Loss)/Income $ (8,735) $ 3,003 $ 223 $ (60,206) $ (62,520)
=============== ============ ================ ============= =============
F-56
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Northeast
Generation Select Energy
Services Portland Select
NU Northeast Company Pipeline, Energy, Inc.
Enterprises, Generation (consolidated) Inc. (consolidated)
Inc. Company (b) (c) (b)
--------------- ------------- ------------- --------------- --------------
Balance at beginning of period $ (64,925) $ 11,853 $ 3,170 $ (3,912) $ (144,025)
Additions:
Net (loss)/income (62,520) 30,406 (3,225) - (81,878)
Allocation of benefits - ESOP - - 64 - 122
--------------- ------------- ------------- --------------- --------------
(127,445) 42,259 9 (3,912) (225,781)
--------------- ------------- ------------- --------------- --------------
Deductions:
Dividends declared:
Common stock $1,666,666.67 per share - 10,000 - - -
Close out of retained earnings due to
dissolving of subsidiary - - - (3,912) -
--------------- ------------- ------------- --------------- --------------
- 10,000 - (3,912) -
--------------- ------------- ------------- --------------- --------------
Balance at end of period $ (127,445) $ 32,259 $ 9 $ - $ (225,781)
=============== ============= ============= =============== ==============
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Northeast
Generation Select Energy
Services Portland Select
NU Northeast Company Pipeline, Energy, Inc.
Enterprises, Generation (consolidated) Inc. (consolidated)
Inc. Company (b) (c) (b)
--------------- ------------- ------------- --------------- --------------
Balance at beginning of period $ 657,870 $ 3,039 $ 10,435 $ 4,359 $ 199,551
Plant acquisition adjustment 662,908 405,060 - - -
Investment in Acumentric Corporation 250 - - - -
Capital contributions from:
NU Enterprises, Inc. - - 5,250 - 50,000
Northeast Utilities 58,150 - - - -
Close out of capital surplus, paid in due to
dissolving of subsidiary - - - (4,359) -
Return of capital from NU Enterprises, Inc.
to Northeast Utilities (13,000) - - - -
Allocation of benefits - ESOP (219) (1) (136) - (214)
--------------- ------------- ------------- --------------- --------------
Balance at end of period $ 1,365,959 $ 408,098 $ 15,549 $ - $ 249,337
=============== ============= ============= =============== ==============
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.
(c) Select Energy Portland Pipeline, Inc. was dissolved on October 28, 2002.
F-57
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Select Energy
Mode 1 Services, Inc.
Communications, (consolidated) Woods Network
Inc. (b) Services, Inc. Eliminations Consolidated
------------------- ---------------- --------------- -------------- --------------
Balance at beginning of period $ (8,619) $ 2,931 $ - $ (138,602) $ (64,925)
Additions:
Net (loss)/income (8,735) 3,003 223 (60,206) (62,520)
Allocation of benefits - ESOP - - - 186 -
------------------- ---------------- --------------- -------------- --------------
(17,354) 5,934 223 (198,622) (127,445)
------------------- ---------------- --------------- -------------- --------------
Deductions:
Dividends declared:
Common stock $1,666,666.67 per share - - - 10,000 -
Close out of retained earnings due to
dissolving of subsidiary - - - (3,912) -
------------------- ---------------- --------------- -------------- --------------
- - - 6,088 -
------------------- ---------------- --------------- -------------- --------------
Balance at end of period $ (17,354) $ 5,934 $ 223 $ (204,710) $ (127,445)
=================== ================ =============== ============== ==============
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2002
(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 $ 24,900 $ - $ 716,775 $ 212,735
Plant acquisition adjustment - - - 662,908 405,060
Investment in Acumentric Corporation - 250 - 250 250
Capital contributions from:
NU Enterprises, Inc. - - 2,650 57,900 -
Northeast Utilities - - - - 58,150
Close out of capital surplus, paid in
due to dissolving of subsidiary - - - (4,359) -
Return of capital from NU Enterprises,
Inc. to Northeast Utilities - - - - (13,000)
Allocation of benefits - ESOP - (53) - (403) (219)
------------------- ---------------- --------------- -------------- --------------
Balance at end of period $ 29,357 $ 25,097 $ 2,650 $ 1,433,071 $ 662,976
=================== ================ =============== ============== ==============
F-58
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Northeast Select
Generation Energy
Services Portland
NU Northeast Company Pipeline,
Enterprises, Generation (consolidated) Inc.
Inc. Company (b) (c)
------------- ----------- --------------- -----------
Operating Activities:
Net (loss)/income $ (62,520) $ 30,406 $ (3,225) $ -
Adjustments to reconcile to net cash
(used in)/provided by operating activities:
Depreciation - 14,091 210 -
Deferred income taxes and investment tax
credits, net (997) 19,031 (116) -
Amortization - - 44 -
Prepaid pension - - (926) -
Net other (uses)/sources of cash (160) 663 (566) (294)
Changes in working capital:
Receivables and unbilled revenues, net - (2,923) 286 -
Fuel, materials and supplies - (371) 258 -
Accounts payable 3 222 1,782 -
Accrued taxes - 99 (2,638) (83)
Other working capital (excludes cash) 42,104 1,892 1,545 -
------------- ----------- --------------- -----------
Net cash flows (used in)/provided by operating
activities (21,570) 63,110 (3,346) (377)
------------- ----------- --------------- -----------
Investing Activities:
Investments in plant:
Electric, gas and other utility plant - - - -
Competitive energy assets - (16,351) - -
------------- ----------- --------------- -----------
Cash flows used for investments in plant - (16,351) - -
NU system Money Pool borrowing/(lending) 3,300 (100) 1,000 -
Payment for the purchase of Woods - - (10,574) -
Other investment activities, net (27,142) (506) (3) -
------------- ----------- --------------- -----------
Net cash flows (used in)/provided by investing
activities (23,842) (16,957) (9,577) -
------------- ----------- --------------- -----------
Financing Activities:
Issuance of long-term debt - - - -
Reacquisitions and retirements of long-term debt - (24,000) - -
Advances/(repayments) from parent, net - - 9,450 -
Cash dividends on common shares - (10,000) - -
Capital contributions 45,400 - 5,250 -
------------- ----------- --------------- -----------
Net cash flows provided by/(used in) financing
activities 45,400 (34,000) 14,700 -
------------- ----------- --------------- -----------
Net (decrease)/increase in cash for the year (12) 12,153 1,777 (377)
Cash - beginning of year 76 6,095 480 377
------------- ----------- --------------- -----------
Cash - end of year $ 64 $ 18,248 $ 2,257 $ -
============= =========== =============== ===========
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ - $ 36,145 $ 563 $ -
============= =========== =============== ===========
Income taxes $ (344) $ (1,435) $ 261 $ 81
============= =========== =============== ===========
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.
(c) Select Energy Portland Pipeline, Inc. was dissolved on October 28, 2002.
F-59
NU ENTERPRISES, INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Select
Select Energy Woods
Energy, Inc. Mode 1 Services, Inc. Network
(consolidated) Communications, (consolidated) Services,
(b) Inc. (b) Inc. Eliminations
---------------- ---------------- -------------- ---------- ------------
Operating Activities:
Net (loss)/income $ (81,878) $ (8,735) $ 3,003 $ 223 $ (60,206)
Adjustments to reconcile to net cash activities:
(used in)/provided by operating activities:
Depreciation 5,756 36 1,339 11 3,637
Deferred income taxes and investment
tax credits, net 17,894 (5,577) 701 - -
Amortization 3,119 - - - -
Prepaid pension 832 - - - -
Net other (uses)/sources of cash (22,662) (2,832) (7,947) (36) 6,689
Changes in working capital:
Receivables and unbilled revenues, net (137,662) 73 2,558 (1,136) (2,538)
Fuel, materials and supplies - - (64) 61 -
Accounts payable 118,107 696 (1,666) 408 (8,452)
Accrued taxes 22,245 (188) 52 114 582
Other working capital (excludes cash) (5,239) (5,434) (9,477) 12 41,530
----------------- ---------------- -------------- ---------- ------------
Net cash flows (used in)/provided by operating
activities (79,488) (21,961) (11,501) (343) (18,758)
----------------- ---------------- -------------- ---------- ------------
Investing Activities:
Investments in plant:
Electric, gas and other utility plant - (25) - - -
Competitive energy assets (4,253) - (1,593) - -
----------------- ---------------- -------------- ---------- ------------
Cash flows used for investments in plant (4,253) (25) (1,593) - -
NU system Money Pool borrowing/(lending) 55,200 800 (8,050) - -
Payment for the purchase of Woods - - - (5,777) -
Other investment activities, net - 21,176 (3) - (29,642)
----------------- ---------------- -------------- ---------- ------------
Net cash flows (used in)/provided by investing
activities 50,947 21,951 (9,646) (5,777) (29,642)
----------------- ---------------- -------------- ---------- ------------
Financing Activities:
Issuance of long-term debt - - 47,648 - -
Reacquisitions and retirements of long-term debt - - (988) - -
Advances/(repayments) from parent, net (12,803) - - 4,400 250
Cash dividends on common shares - - - - (10,000)
Capital contributions 50,000 - 250 2,650 58,150
----------------- ---------------- -------------- ---------- ------------
Net cash flows provided by/(used in)
financing activities 37,197 - 46,910 7,050 48,400
----------------- ---------------- -------------- ---------- ------------
Net (decrease)/increase in cash for the year 8,656 (10) 25,763 930 -
Cash - beginning of year 5,876 10 3,162 - -
----------------- ---------------- -------------- ---------- ------------
Cash - end of year $ 14,532 $ - $ 28,925 $ 930 $ -
================= ================= =============== ========== ============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 5,429 $ - $ 316 $ 119 $ -
================= ================= =============== ========== ============
Income taxes $ (95,899) $ 965 $ 1,304 $ 104 $ -
================= ================= =============== ========== ============
Consolidated
------------
Operating Activities:
Net (loss)/income $ (62,520)
Adjustments to reconcile to net cash activities:
(used in)/provided by operating activities:
Depreciation 17,805
Deferred income taxes and investment
tax credits, net 30,936
Amortization 3,163
Prepaid pension (94)
Net other (uses)/sources of cash (40,520)
Changes in working capital:
Receivables and unbilled revenues, net (136,265)
Fuel, materials and supplies (117)
Accounts payable 128,005
Accrued taxes 19,019
Other working capital (excludes cash) (16,131)
-----------
Net cash flows (used in)/provided by operating
activities (56,719)
-----------
Investing Activities:
Investments in plant:
Electric, gas and other utility plant (25)
Competitive energy assets (22,197)
-----------
Cash flows used for investments in plant (22,222)
NU system Money Pool borrowing/(lending) 52,150
Payment for the purchase of Woods (16,351)
Other investment activities, net 23,164
-----------
Net cash flows (used in)/provided by investing
activities 36,741
-----------
Financing Activities:
Issuance of long-term debt 47,648
Reacquisitions and retirements of long-term debt (24,988)
Advances/(repayments) from parent, net 797
Cash dividends on common shares -
Capital contributions 45,400
-----------
Net cash flows provided by/(used in)
financing activities 68,857
-----------
Net (decrease)/increase in cash for the year 48,879
Cash - beginning of year 16,077
-----------
Cash - end of year $ 64,956
===========
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 42,572
===========
Income taxes $ (94,963)
===========
F-60
NORTHEAST GENERATION SERVICES COMPANY
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2002
(Thousands of Dollars)
Northeast Woods
Generation NGS E. S. Boulos Electrical
Services Company Mechanical, Inc. Company Co., Inc. Eliminations Consolidated
---------------- --------------- ------------ ------------ ------------ --------------
ASSETS
------
Current Assets:
Cash $ 1 $ 10 $ 1,356 $ 890 $ - $ 2,257
Receivables, net 5,731 - 10,617 1,252 - 17,600
Accounts receivable from affiliated
companies 4,098 - 326 - 326 4,098
Taxes receivable 686 - - 63 60 690
Unbilled revenues 1,301 - 2,800 197 - 4,297
Fuel, materials, and supplies, at
average cost 5 - 223 94 - 322
Prepayments and other 1,964 - - 85 51 1,998
---------------- --------------- ------------ ------------ ------------ --------------
13,786 10 15,322 2,581 437 31,262
---------------- --------------- ------------ ------------ ------------ --------------
Property, Plant and Equipment:
Competitive energy 2,980 - 712 290 - 3,982
Less: Accumulated depreciation 826 - 205 15 - 1,046
---------------- --------------- ------------ ------------ ------------ --------------
2,154 - 507 275 - 2,936
Construction work in progress 508 - - - - 508
---------------- --------------- ------------ ------------ ------------ --------------
2,662 - 507 275 - 3,444
---------------- --------------- ------------ ------------ ------------ --------------
Deferred Debits and Other Assets:
Goodwill and other purchased intangible
assets, net - - 6,963 7,670 - 14,633
Prepaid pension 926 - - - - 926
Investments in subsidiary companies,
at equity 21,757 - - - 21,757 -
Other 1,274 - 35 - - 1,309
---------------- --------------- ------------ ------------ ------------ --------------
23,957 - 6,998 7,670 21,757 16,868
---------------- --------------- ------------ ------------ ------------ --------------
Total Assets $ 40,405 $ 10 $ 22,827 $ 10,526 $ 22,194 $ 51,574
================ =============== ============ ============ ============ ==============
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, 2002
(Thousands of Dollars)
Northeast NGS E. S. Woods
Generation Mechanical, Boulos Electrical
Services Company Inc. Company Co., Inc. Eliminations Consolidated
----------------- ---------- ------------ ------------ ------------ --------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to affiliated companies $ 13,500 $ - $ - $ - $ - $ 13,500
Advance from parent, non-interest bearing - - 2,948 250 3,198 -
Accounts payable 3,014 - 3,324 304 - 6,642
Accounts payable to affiliated companies 1,421 2 967 550 326 2,614
Accrued taxes - - 60 - 59 -
Other 1,226 - 688 - 51 1,864
----------------- ---------- ------------ ------------ ------------ --------------
19,161 2 7,987 1,104 3,634 24,620
----------------- ---------- ------------ ------------ ------------ --------------
Deferred Credits and Other Liabilities:
Other 699 - 1,180 80 - 1,959
----------------- ---------- ------------ ------------ ------------ --------------
699 - 1,180 80 - 1,959
----------------- ---------- ------------ ------------ ------------ --------------
Capitalization:
Advances from Northeast Utilities 5,000 - - 4,450 - 9,450
----------------- ---------- ------------ ------------ ------------ --------------
Common Stockholder's Equity:
Common stock - - - - - -
Capital surplus, paid in 15,549 10 7,539 5,000 12,549 15,549
Retained earnings/(accumulated deficit) 9 (2) 6,121 (108) 6,011 9
Accumulated other comprehensive loss (13) - - - - (13)
----------------- ---------- ------------ ------------ ------------ --------------
Common Stockholder's Equity 15,545 8 13,660 4,892 18,560 15,545
----------------- ---------- ------------ ------------ ------------ --------------
Total Capitalization 20,545 8 13,660 9,342 18,560 24,995
----------------- ---------- ------------ ------------ ------------ --------------
Total Liabilities and Capitalization $ 40,405 $ 10 $ 22,827 $ 10,526 $ 22,194 $ 51,574
================= ========== ============ ============ ============ ==============
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, 2002
(Thousands of Dollars)
Northeast
Generation NGS E. S. Woods
Services Mechanical, Boulos Electrical
Company Inc. Company Co., Inc. Eliminations Consolidated
----------- ------------ --------- ----------- ------------- ------------
Operating Revenues $ 52,733 $ - $ 62,056 $ 3,213 $ 2,837 $ 115,166
----------- ------------ --------- ----------- ------------- -------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power 2,165 - - - - 2,165
Other 44,734 1 1,496 824 2,837 44,218
Maintenance 12,486 - 56,497 2,482 - 71,464
Depreciation 60 - 134 14 - 210
Amortization 44 - - - - 44
Taxes other than income taxes 1,841 - 29 14 - 1,884
----------- ------------ --------- ----------- ------------- -------------
Total operating expenses 61,330 1 58,156 3,334 2,837 119,985
----------- ------------ --------- ----------- ------------- -------------
Operating (Loss)/Income (8,597) (1) 3,900 (121) - (4,819)
----------- ------------ --------- ----------- ------------- -------------
Interest Expense, net 477 - - 140 - 617
----------- ------------ --------- ----------- ------------- -------------
Other Income/(Loss), Net
Equity in earnings of subsidiaries 2,606 - - - 2,606 -
Other, net (263) - 210 9 - (45)
----------- ------------ --------- ----------- ------------- -------------
Other income/(loss), net 2,343 - 210 9 2,606 (45)
----------- ------------ --------- ----------- ------------- -------------
(Loss)/Income Before Income Tax (Benefit)/Expense (6,731) (1) 4,110 (252) 2,606 (5,481)
Income Tax (Benefit)/Expense (3,506) - 1,395 (144) - (2,256)
----------- ------------ --------- ----------- ------------- -------------
Net (Loss)/Income $ (3,225) $ (1) $ 2,715 $ (108) $ 2,606 $ (3,225)
=========== ============ ========= =========== ============= =============
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, 2002
(Thousands of Dollars)
Northeast
Generation NGS Woods
Services Mechanical E. S. Boulos Electrical
Company Inc. Company Co., Inc Eliminations Consolidated
----------- ----------- --------------- -------------- -------------- --------------
Balance at beginning of period $ 3,170 $ (1) $ 3,406 $ - $ 3,405 $ 3,170
Additions:
Net (loss)/income (3,225) (1) 2,715 (108) 2,606 (3,225)
Allocation of benefits - ESOP 64 - - - - 64
----------- ----------- --------------- -------------- -------------- --------------
Balance at end of period $ 9 $ (2) $ 6,121 $ (108) $ 6,011 $ 9
=========== =========== =============== ============== ============== ==============
NORTHEAST GENERATION SERVICES COMPANY
AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Northeast
Generation NGS Woods
Services Mechanical E. S. Boulos Electrical
Company Inc. Company Co., Inc Eliminations Consolidated
----------- ----------- --------------- -------------- -------------- --------------
Balance at beginning of period $ 10,435 $ 10 $ 7,539 $ - $ 7,549 $ 10,435
Capital contribution from:
NU Enterprises, Inc. 5,250 - - - - 5,250
Northeast Generation Services Company - - - 5,000 5,000 -
Allocation of benefits - ESOP (136) - - - - (136)
----------- ----------- --------------- -------------- -------------- --------------
Balance at end of period $ 15,549 $ 10 $ 7,539 $ 5,000 $ 12,549 $ 15,549
=========== =========== =============== ============== ============== ==============
Note: Individual columns may not add to Consolidated due to rounding.
The accompanying notes are an integral part of these financial statements.
(a) Not covered by auditors' report.
F-64
NORTHEAST GENERATION SERVICES COMPANY
AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Northeast
Generation NGS E.S. Woods
Services Mechanical, Boulos Electrical,
Company Inc. Company Inc. Eliminations Consolidated
------------ ------------ --------- ----------- ------------ ------------
Operating Activities:
Net (loss)/income $ (3,225) $ (1) $ 2,715 $ (108) $ 2,606 $ (3,225)
Adjustments to reconcile to net cash (used in)/
provided by operating activities:
Depreciation 60 - 134 14 - 210
Deferred income taxes and investment tax
credits, net (110) - (6) - - (116)
Amortization 44 - - - - 44
Prepaid pension (926) - - - - (926)
Net other uses of cash (291) - (133) (141) - (566)
Changes in working capital:
Receivables and unbilled revenues, net 1,910 - (3,158) 2,093 559 286
Fuel, materials and supplies 450 - (120) (72) - 258
Accounts payable 104 1 798 320 (559) 1,782
Accrued taxes (1,590) - (988) - 59 (2,638)
Other working capital (excludes cash) (4) - 1,831 (342) (60) 1,545
------------ ------------ --------- ----------- ------------ ------------
Net cash flows (used in)/provided by operating
activities (3,578) - 1,073 1,764 2,605 (3,346)
------------ ------------ --------- ----------- ------------ ------------
Investing Activities:
NU system Money Pool borrowing 1,000 - - - - 1,000
Payment for the purchase of Woods Electrical Co. - - - (10,574) - (10,574)
Other investment activities, net (7,855) - (3) - (7,855) (3)
------------ ------------ --------- ----------- ------------ ------------
Net cash flows used in investing activities (6,855) - (3) (10,574) (7,855) (9,577)
------------ ------------ --------- ----------- ------------ ------------
Financing Activities:
Advance from parent 5,000 - - 4,700 250 9,450
Capital contributions 5,250 - - 5,000 5,000 5,250
------------ ------------ --------- ----------- ------------ ------------
Net cash flows provided by financing activities 10,250 - - 9,700 5,250 14,700
------------ ------------ --------- ----------- ------------ ------------
Net (decrease)/increase in cash for the year (183) - 1,070 890 - 1,777
Cash - beginning of year 184 10 286 - - 480
------------ ------------ --------- ----------- ------------ ------------
Cash - end of year $ 1 $ 10 $ 1,356 $ 890 $ - $ 2,257
============ ============ ========= =========== ============ ============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 423 $ - $ - $ 140 $ - $ 563
============ ============ ========= =========== ============ ============
Income taxes $ (1,172) $ - $ 1,450 $ (17) $ - $ 261
============ ============ ========= =========== ============ ============
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, 2002
(Thousands of Dollars)
Select Select Energy
Energy, Inc. New York, Inc. Eliminations Consolidated
----------------- --------------- ------------ ------------
ASSETS
------
Current Assets:
Cash $ 2,454 $ 12,077 $ - $ 14,532
Receivables, net 415,918 38,286 - 454,204
Accounts receivable from affiliated companies 118,780 1,491 7,243 113,028
Special deposits 72 2,384 - 2,455
Derivative assets 101,957 28,816 2,097 128,676
Prepayments and other 57,963 18,240 - 76,203
----------------- --------------- ----------- ------------
697,144 101,294 9,340 789,098
----------------- --------------- ----------- ------------
Property, Plant and Equipment:
Competitive energy 12,629 440 - 13,068
Less: Accumulated depreciation 7,373 251 - 7,624
----------------- --------------- ----------- ------------
5,256 189 - 5,444
Construction work in progress 3,965 - - 3,965
----------------- --------------- ----------- ------------
9,221 189 - 9,409
----------------- --------------- ----------- ------------
Deferred Debits and Other Assets:
Intangibles, net 18,032 3,200 - 21,232
Prepaid pension 2,257 - 374 1,884
Investments in subsidiary company, at equity 34,199 - 34,199 -
Other 55,443 1,563 - 57,005
----------------- --------------- ----------- ------------
109,931 4,763 34,573 80,121
----------------- --------------- ----------- ------------
Total Assets $ 816,296 $ 106,246 $ 43,913 $ 878,628
================= =============== =========== ============
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, 2002
(Thousands of Dollars)
Select Select Energy
Energy, Inc. New York, Inc. Eliminations Consolidated
----------------- --------------- ------------- ------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to affiliated companies $ 217,200 $ - $ - $ 217,200
Accounts payable 387,458 23,623 - 411,081
Accounts payable to affiliated companies 10,244 5,947 7,243 8,948
Accrued taxes 19,838 2,407 - 22,245
Accrued interest 27 - - 27
Derivative liabilities 61,204 4,794 2,097 63,900
Other 22,042 5,884 - 27,926
----------------- --------------- ------------ ------------
718,013 42,655 9,340 751,327
----------------- --------------- ------------ ------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes 13,240 8,302 - 21,542
Deferred pension costs - 374 374 -
Other 49,114 17 - 49,131
----------------- --------------- ------------ ------------
62,354 8,693 374 70,673
----------------- --------------- ------------ ------------
Capitalization:
Advances from Northeast Utilities - 20,699 - 20,699
----------------- --------------- ------------ ------------
Common Stockholder's Equity:
Common stock - 10 10 -
Capital surplus, paid in 249,337 9,976 9,976 249,337
(Accumulated deficit)/Retained earnings (225,781) 19,903 19,903 (225,781)
Accumulated other comprehensive income 12,373 4,310 4,310 12,373
----------------- --------------- ------------ ------------
Common Stockholder's Equity 35,929 34,199 34,199 35,929
----------------- --------------- ------------ ------------
Total Capitalization 35,929 54,898 34,199 56,628
----------------- --------------- ------------ ------------
Total Liabilities and Capitalization $ 816,296 $ 106,246 $ 43,913 $ 878,628
================= =============== ============ ============
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, 2002
(Thousands of Dollars)
Select Select Energy
Energy, Inc. New York, Inc. Eliminations Consolidated
---------------- --------------- ------------ ----------------
Operating Revenues $ 1,250,212 $ 272,205 $ 36,834 $ 1,485,583
---------------- --------------- ------------ ----------------
Operating Expenses:
Operation-
Fuel, purchased and net interchange power 1,335,869 235,150 36,834 1,534,186
Other 55,894 8,972 - 64,866
Maintenance 39 - - 39
Depreciation 5,756 - - 5,756
Amortization 3,119 - - 3,119
Taxes other than income taxes 4,509 (2,003) - 2,505
---------------- --------------- ------------ ----------------
Total operating expenses 1,405,186 242,119 36,834 1,610,471
---------------- --------------- ------------ ----------------
Operating (Loss)/Income (154,974) 30,086 - (124,888)
---------------- --------------- ------------ ----------------
Interest Expense, Net 5,179 770 - 5,948
---------------- --------------- ------------ ----------------
Other Income, Net
Equity in earnings of subsidiary 17,208 - 17,208 -
Other, net 2 277 - 279
---------------- --------------- ------------ ----------------
Other income, net 17,210 277 17,208 279
---------------- --------------- ------------ ----------------
(Loss)/Income Before Income Tax (Benefit)/Expense (142,943) 29,593 17,208 (130,557)
Income Tax (Benefit)/Expense (61,065) 12,385 - (48,679)
---------------- --------------- ------------ ----------------
Net (Loss)/Income $ (81,878) $ 17,208 $ 17,208 $ (81,878)
================ =============== ============ ================
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, 2002
(Thousands of Dollars)
Select Select Energy
Energy, Inc. New York, Inc. Eliminations Consolidated
---------------- --------------- ------------ --------------
Balance at beginning of period $ (144,025) $ 2,695 $ 2,695 $ (144,025)
Additions:
Net (loss)/income (81,878) 17,208 17,208 (81,878)
Allocation of benefits - ESOP 122 - - 122
---------------- ----------------------------- --------------
Balance at end of period $ (225,781) $ 19,903 $ 19,903 $ (225,781)
================ =============== ============ ==============
SELECT ENERGY, INC.
AND SUBSIDIARY
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Select Select Energy
Energy, Inc. New York, Inc. Eliminations Consolidated
---------------- --------------- ------------ --------------
Balance at beginning of period $ 199,551 $ 3,187 $ 3,187 $ 199,551
Capital contributions from:
NU Enterprises, Inc. 50,000 - - 50,000
Select Energy, Inc. - 6,803 6,803 -
Allocation of benefits - ESOP (214) (14) (14) (214)
---------------- --------------- ------------ --------------
Balance at end of period $ 249,337 $ 9,976 $ 9,976 $ 249,337
================ =============== ============ ==============
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, 2002
(Thousands of Dollars)
Select Select Energy
Energy, Inc. New York, Inc. Eliminations Consolidated
---------------- -------------- -------------- --------------
Operating Activities:
Net (loss)/income $ (81,878) $ 17,208 $ 17,208 $ (81,878)
Adjustments to reconcile to net cash (used in)/
provided by operating activities:
Depreciation 5,756 - - 5,756
Deferred income taxes and investment tax credits, net 18,083 (189) - 17,894
Amortization 3,119 - - 3,119
Prepaid pension 459 - (374) 832
Net other (uses)/sources of cash (26,488) 4,250 425 (22,662)
Changes in working capital:
Receivables and unbilled revenues, net (149,999) 5,096 (7,241) (137,662)
Accounts payable 120,727 4,620 7,241 118,107
Accrued taxes 19,838 1,051 (1,356) 22,245
Other working capital (excludes cash) 20,197 (19,835) 5,601 (5,239)
---------------- -------------- --------------- ---------------
Net cash flows (used in)/provided by operating activities (70,186) 12,201 21,504 (79,488)
---------------- -------------- --------------- ---------------
Investing Activities:
Competitive energy assets (4,253) - - (4,253)
NU system Money Pool borrowing 55,200 - - 55,200
Other investment activities, net (28,307) - (28,307) -
---------------- -------------- --------------- ---------------
Net cash flows provided by/(used in) investing activities 22,640 - (28,307) 50,947
---------------- -------------- --------------- ---------------
Financing Activities:
Repayment to NU parent - (12,803) - (12,803)
Capital contributions 50,000 6,803 6,803 50,000
---------------- -------------- --------------- ---------------
Net cash flows provided by/(used in) financing activities 50,000 (6,000) 6,803 37,197
---------------- -------------- --------------- ---------------
Net increase in cash for the year 2,454 6,201 - 8,656
Cash - beginning of year - 5,876 - 5,876
---------------- -------------- --------------- ---------------
Cash - end of year $ 2,454 $ 12,077 $ - $ 14,532
================ ============== =============== ===============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 4,659 $ 770 $ - $ 5,429
================ ============== =============== ===============
Income taxes $ (102,255) $ 6,356 $ - $ (95,899)
================ ============== =============== ===============
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, 2002
(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 $ 24,900 $ 463 $ 5 $ 3,557
Receivables, net 4,986 13,832 78 897
Accounts receivable from affiliated companies 13,107 - - -
Taxes receivable 344 - - -
Other material and supplies, at average cost - 331 - -
Prepayments and other 1,128 564 - -
------------- --------------- --------------- ------------------
44,465 15,190 83 4,454
------------- --------------- --------------- ------------------
Property, Plant and Equipment:
Competitive energy 5,736 6,310 - 608
Less: Accumulated depreciation 4,467 3,996 - -
------------- --------------- --------------- ------------------
1,269 2,314 - 608
------------- --------------- --------------- ------------------
Deferred Debits and Other Assets:
Goodwill 505 17,220 247 -
Investments in subsidiary companies, at equity 21,237 - - -
Other 27,835 - - 28,223
------------- --------------- --------------- ------------------
49,577 17,220 247 28,223
------------- --------------- --------------- ------------------
Total Assets $ 95,311 $ 34,724 $ 330 $ 33,285
============= =============== =============== ==================
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, 2002
(Thousands of Dollars)
HEC/CJTS
Energy
Center LLC Eliminations Consolidated
----------- ------------ ------------
ASSETS
------
Current Assets:
Cash $ 1 $ - $ 28,925
Receivables, net - 77 19,715
Accounts receivable from affiliated companies - 13,107 -
Taxes receivable - 344 -
Other material and supplies, at average cost - - 331
Prepayments and other - - 1,692
----------- ------------ ------------
1 13,528 50,663
----------- ------------ ------------
Property, Plant and Equipment:
Competitive energy - 608 12,046
Less: Accumulated depreciation - - 8,463
----------- ------------ ------------
- 608 3,583
----------- ------------ ------------
Deferred Debits and Other Assets:
Goodwill - - 17,973
Investments in subsidiary companies, at equity - 21,237 -
Other - 2,376 53,682
----------- ------------ ------------
- 23,613 71,655
----------- ------------ ------------
Total Assets $ 1 $ 37,749 $ 125,901
=========== ============ ============
F-74
SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2002
(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 $ 6,450 $ 3,790 $ - $ -
Long-term debt - current portion 1,220 - - 1,042
Accounts payable 2,333 3,823 77 -
Accounts payable to affiliated companies 2,548 4,439 295 6,345
Accrued taxes - 553 - 141
Accrued interest - - - 719
Other 5,254 1,408 - 382
------------- ----------------- ----------------- --------------------
17,805 14,013 372 8,629
------------- ----------------- ----------------- --------------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes 47 947 - -
Other - 2,984 - -
------------- ----------------- ----------------- --------------------
47 3,931 - -
------------- ----------------- ----------------- --------------------
Capitalization:
Long-Term Debt 46,428 - - 23,949
------------- ----------------- ----------------- --------------------
Common Stockholder's Equity:
Common stock - - 4 -
Capital surplus, paid in 25,097 15,124 3 -
Retained earnings/(accumulated deficit) 5,934 1,656 (49) 707
------------- ----------------- ----------------- --------------------
Common Stockholder's Equity 31,031 16,780 (42) 707
------------- ----------------- ----------------- --------------------
Total Capitalization 77,459 16,780 (42) 24,656
------------- ----------------- ----------------- --------------------
Total Liabilities and Capitalization $ 95,311 $ 34,724 $ 330 $ 33,285
============= ================= ================= ====================
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, 2002
(Thousands of Dollars)
HEC/CJTS
Energy
Center LLC Eliminations Consolidated
----------- ------------ ------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Notes payable to affiliated companies $ - $ 3,791 $ 6,450
Long-term debt - current portion - - 2,262
Accounts payable - 77 6,156
Accounts payable to affiliated companies - 13,107 519
Accrued taxes - 344 350
Accrued interest - - 719
Other - - 7,044
----------- ------------ ------------
- 17,319 23,500
----------- ------------ ------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes - - 994
Other - 2,984 -
----------- ------------ ------------
- 2,984 994
----------- ------------ ------------
Capitalization:
Long-Term Debt - - 70,376
----------- ------------ ------------
Common Stockholder's Equity:
Common stock - 4 -
Capital surplus, paid in 12 15,139 25,097
Retained earnings/(accumulated deficit) (11) 2,303 5,934
----------- ------------ ------------
Common Stockholder's Equity 1 17,446 31,031
----------- ------------ ------------
Total Capitalization 1 17,446 101,407
----------- ------------ ------------
Total Liabilities and Capitalization $ 1 $ 37,749 $ 125,901
=========== ============ ============
F-76
SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2002
(Thousands of Dollars)
HEC/
Select Select Reeds Tobyhanna
Energy Energy Ferry Energy
Services, Contracting, Supply Project,
Inc. Inc. Co., Inc. Inc.
--------------- --------------- ------------ ------------
Operating Revenues $ 45,761 $ 57,681 $ 836 $ -
--------------- --------------- ------------ ------------
Operating Expenses:
Operation 42,719 54,238 836 -
Maintenance 32 460 - -
Depreciation 218 1,121 - -
Taxes other than income taxes 459 338 - -
--------------- --------------- ------------ ------------
Total operating expenses 43,428 56,157 836 -
--------------- --------------- ------------ ------------
Operating Income/(Loss) 2,333 1,524 - -
--------------- --------------- ------------ ------------
Interest Expense, Net 1,459 270 - 1,970
--------------- --------------- ------------ ------------
Other Income/(Loss), Net
Equity in earnings of subsidiaries 1,381 - - -
Other, net 2,068 (34) - 2,652
--------------- --------------- ------------ ------------
Other income/(loss), net 3,449 (34) - 2,652
--------------- --------------- ------------ ------------
Income/(Loss) Before Income Tax Expense 4,323 1,220 - 682
Income Tax Expense 1,320 318 - 201
--------------- --------------- ------------ ------------
Net Income/(Loss) $ 3,003 $ 902 $ - $ 481
=============== =============== ============ ============
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, 2002
(Thousands of Dollars)
HEC/
CJTS
Energy
Center
LLC Eliminations Consolidated
------------- ------------- --------------
Operating Revenues $ - $ 4,870 $ 99,408
------------- ------------- --------------
Operating Expenses:
Operation 2 4,870 92,927
Maintenance - - 492
Depreciation - - 1,339
Taxes other than income taxes - - 796
------------- ------------- --------------
Total operating expenses 2 4,870 95,554
------------- ------------- --------------
Operating Income/(Loss) (2) - 3,854
------------- ------------- --------------
Interest Expense, Net - - 3,699
------------- ------------- --------------
Other Income/(Loss), Net
Equity in earnings of subsidiaries - 1,381 -
Other, net - - 4,686
------------- ------------- --------------
Other income/(loss), net - 1,381 4,686
------------- ------------- --------------
Income/(Loss) Before Income Tax Expense (2) 1,381 4,841
Income Tax Expense - - 1,838
------------- ------------- --------------
Net Income/(Loss) $ (2) $ 1,381 $ 3,003
============= ============= ==============
F-78
SELECT ENERGY SERVICES INC. AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Select Select Reeds
Energy Energy Ferry
Services, Contracting, Supply
Inc. Inc. Co., Inc.
----------------- ------------- --------------
Balance at beginning of period $ 2,931 $ 754 $ (49)
Additions:
Net income/(loss) 3,003 902 -
----------------- ------------- --------------
Balance at end of period $ 5,934 $ 1,656 $ (49)
================= ============= ==============
SELECT ENERGY SERVICES INC. AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Select Select Reeds
Energy Energy Ferry
Services, Contracting, Supply
Inc. Inc. Co., Inc.
----------------- ------------- --------------
Balance at beginning of period $ 24,900 $ 14,910 $ 3
Capital contribution from:
Select Energy Services, Inc. - - -
Investment in Acumentric Corporation 250 250 -
Allocation of benefits - ESOP (53) (36) -
----------------- ------------- --------------
Balance at end of period $ 25,097 $ 15,124 $ 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, 2002
(Thousands of Dollars)
HEC/ HEC/
Tobyhanna CJTS
Energy Energy
Project, Center,
Inc. LLC Eliminations Consolidated
-------------- ---------------- -------------- ---------------
Balance at beginning of period $ 226 $ (9) $ 922 $ 2,931
Additions:
Net income/(loss) 481 (2) 1,381 3,003
-------------- ---------------- -------------- ---------------
Balance at end of period $ 707 $ (11) $ 2,303 $ 5,934
============== ================ ============== ===============
SELECT ENERGY SERVICES INC. AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2002
(Thousands of Dollars)
HEC/ HEC/
Tobyhanna CJTS
Energy Energy
Project, Center,
Inc. LLC Eliminations Consolidated
-------------- --------------- -------------- ---------------
Balance at beginning of period $ - $ 10 $ 14,923 $ 24,900
Capital contribution from:
Select Energy Services, Inc. - 2 2 -
Investment in Acumentric Corporation - - 250 250
Allocation of benefits - ESOP - - (36) (53)
-------------- --------------- -------------- ---------------
Balance at end of period $ - $ 12 $ 15,139 $ 25,097
============== =============== ============== ===============
F-80
SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Select Select Reeds
Energy Energy Ferry
Services, Contracting, Supply
Inc. Inc. Co. Inc.
-------------------- ---------------- ------------------
Operating Activities:
Net income/(loss) $ 3,003 $ 902 $ -
Adjustments to reconcile to net cash (used in)/
provided by operating activities:
Depreciation 218 1,121 -
Deferred income taxes and investment tax credits, net 28 673 -
Net other uses of cash (5,770) (283) -
Changes in working capital:
Receivables and unbilled revenues, net (1,248) 2,305 49
Fuel, materials and supplies - (64) -
Accounts payable 286 (3,768) (49)
Accrued taxes - (373) -
Other working capital (excludes cash) (8,686) (515) -
-------------------- ---------------- ------------------
Net cash flows (used in)/provided by operating activities (12,169) (2) -
-------------------- ---------------- ------------------
Investing Activities:
Competitive energy assets (1,593) - -
NU system Money Pool lending (8,050) - -
Other investment activities, net (1,601) - -
-------------------- ---------------- ------------------
Net cash flows used in investing activities (11,244) - -
-------------------- ---------------- ------------------
Financing Activities:
Issuance of long-term debt 47,648 - -
Reacquisitions and retirements of long-term debt - - -
Capital contributions 250 250 -
-------------------- ---------------- ------------------
Net cash flows provided by/(used in) financing activities 47,898 250 -
-------------------- ---------------- ------------------
Net increase in cash for the year 24,485 248 -
Cash - beginning of year 415 215 5
-------------------- ---------------- ------------------
Cash - end of year $ 24,900 $ 463 $ 5
==================== ================ ==================
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ 316 $ - $ -
==================== ================ ==================
Income taxes $ 1,064 $ 103 $ (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-81
SELECT ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2002
(Thousands of Dollars)
HEC/
Tobyhanna HEC/CJTS
Energy Energy
Project, Center
Inc. LLC Eliminations Consolidated
----------- ----------- ------------- -------------
Operating Activities:
Net income/(loss) $ 481 $ (2) $ 1,381 $ 3,003
Adjustments to reconcile to net cash (used in)/
provided by operating activities:
Depreciation - - - 1,339
Deferred income taxes and investment tax credits, net - - - 701
Net other uses of cash (1,925) - (35) (7,947)
Changes in working capital:
Receivables and unbilled revenues, net 375 - (1,076) 2,558
Fuel, materials and supplies - - - (64)
Accounts payable 2,942 - 1,075 (1,666)
Accrued taxes 141 - (284) 52
Other working capital (excludes cash) 6 - 284 (9,477)
----------- ----------- ------------- -------------
Net cash flows (used in)/provided by operating activities 2,020 (2) 1,345 (11,501)
----------- ----------- ------------- -------------
Investing Activities:
Competitive energy assets - - - (1,593)
NU system Money Pool lending - - 1 (8,050)
Other investment activities, net - - (1,598) (3)
----------- ----------- ------------- -------------
Net cash flows used in investing activities - - (1,597) (9,646)
----------- ----------- ------------- -------------
Financing Activities:
Issuance of long-term debt - - - 47,648
Reacquisitions and retirements of long-term debt (988) - - (988)
Capital contributions - 2 252 250
----------- ----------- ------------- -------------
Net cash flows provided by/(used in) financing activities (988) 2 252 46,910
----------- ----------- ------------- -------------
Net increase in cash for the year 1,032 - - 25,763
Cash - beginning of year 2,525 1 - 3,162
----------- ----------- ------------- -------------
Cash - end of year $ 3,557 $ 1 $ - $ 28,925
=========== =========== ============= =============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ - $ - $ - $ 316
=========== =========== ============= =============
Income taxes $ 139 $ - $ - $ 1,304
=========== =========== ============= =============
F-82
CHARTER OAK ENERGY, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Assets
December 31, 2002
(Thousands of Dollars)
COE COE COE
Charter Development Argentina II Ave Fenix
Oak Corporation Corp. Corporation
Energy, Inc. (b) (b) (b) Eliminations Consolidated
------------ ------------ ------------ ----------- ------------ -------------
ASSETS
------
Current Assets:
Cash $ 273 $ - $ - $ - $ - $ 273
------------ ------------ ------------ ----------- ------------ -------------
Property, Plant and Equipment:
Electric utility 40 - - - - 40
Less: Accumulated depreciation 40 - - - - 40
------------ ------------ ------------ ----------- ------------ -------------
- - - - - -
------------ ------------ ------------ ----------- ------------ -------------
Deferred Debits and Other Assets:
Accumulated deferred income taxes 80 - - - - 80
------------ ------------ ------------ ----------- ------------ -------------
Total Assets $ 353 $ - $ - $ - $ - $ 353
============ ============ ============ =========== ============ =============
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) These corporations were dissolved on October 28, 2002.
F-83
CHARTER OAK ENERGY, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet (a)
Capitalization and Liabilities
December 31, 2002
(Thousands of Dollars)
COE COE COE
Charter Development Argentina II Ave Fenix
Oak Corporation Corp. Corporation
Energy, Inc. (b) (b) (b) Eliminations Consolidated
------------ ------------ ------------ ----------- ------------ ------------
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Accrued taxes $ 84 $ - $ - $ - $ - $ 84
------------ ------------ ------------ ----------- ------------ ------------
Capitalization:
Common Stockholder's Equity:
Common stock - - - - - -
Capital surplus, paid in 64,344 - - - - 64,344
Accumulated deficit (64,075) - - - - (64,075)
------------ ------------ ------------ ----------- ------------ ------------
Common Stockholder's Equity 269 - - - - 269
------------ ------------ ------------ ----------- ------------ ------------
Total Capitalization 269 - - - - 269
------------ ------------ ------------ ----------- ------------ ------------
Total Liabilities and Capitalization $ 353 $ - $ - $ - $ - $ 353
============ ============ ============ =========== ============ ============
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) These corporations were dissolved on October 28, 2002.
F-84
CHARTER OAK ENERGY, INC.
AND SUBSIDIARIES
Consolidating Statement of Income (a)
Year Ended December 31, 2002
(Thousands of Dollars)
COE COE COE
Development Argentina II Ave Fenix
Charter Oak Corporation Corp. Corporation
Energy, Inc. (b) (b) (b) Eliminations Consolidated
--------------- -------------- ------------ -------------- ------------ ------------
Operating Revenues $ - $ - $ - $ - $ - $ -
--------------- -------------- ------------ -------------- ------------ ------------
Operating Expenses:
Other (311) - - - - (311)
--------------- -------------- ------------ -------------- ------------ ------------
Operating Income 311 - - - - 311
Other Income, Net 26 - - - - 26
--------------- -------------- ------------ -------------- ------------ ------------
Income Before Income Tax Expense 337 - - - - 337
Income Tax Expense 265 - - - - 265
--------------- -------------- ------------ -------------- ------------ ------------
Net Income $ 72 $ - $ - $ - $ - $ 72
=============== ============== ============ ============== ============ ============
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) These corporations were dissolved
on October 28, 2002.
F-85
CHARTER OAK ENERGY, INC.
AND SUBSIDIARIES
Consolidating Statement of Retained Earnings (a)
Year Ended December 31, 2002
(Thousands of Dollars)
COE COE COE
Development Argentina II Ave Fenix
Charter Oak Corporation Corp. Corporation
Energy, Inc. (b) (b) (b) Eliminations Consolidated
------------ ------------- -------------- ------------- ------------ ------------
Balance at beginning of period $ (64,147) $ (14,786) $ (1,542) $ (39,881) $ (56,209) $ (64,147)
Additions:
Net Income 72 - - - - 72
------------ ------------- -------------- ------------- ------------ ------------
(64,075) (14,786) (1,542) (39,881) (56,209) (64,075)
------------ ------------- -------------- ------------- ------------ ------------
Deductions:
Close out of retained earnings due to
dissolving of subsidiaries - (14,786) (1,542) (39,881) (56,209) -
------------ ------------- -------------- ------------- ------------ ------------
- (14,786) (1,542) (39,881) (56,209) -
------------ ------------- -------------- ------------- ------------ ------------
Balance at end of period $ (64,075) $ - $ - $ - $ - $ (64,075)
============ ============= ============== ============= ============ ============
CHARTER OAK ENERGY, INC.
AND SUBSIDIARIES
Consolidating Statement of Capital Surplus, Paid In (a)
Year Ended December 31, 2002
(Thousands of Dollars)
COE COE COE
Development Argentina II Ave Fenix
Charter Oak Corporation Corp. Corporation
Energy, Inc. (b) (b) (b) Eliminations Consolidated
------------ ------------- -------------- ------------- ------------ ------------
Balance at beginning of period $ 75,944 $ 15,873 $ 1,571 $ 51,884 $ 69,327 $ 75,944
Dividends declared on common shares:
$116,000.00 per share (11,600) - - - - (11,600)
$119,500.00 per share - - - (11,950) (11,950) -
Close out of capital surplus, paid in due to
dissolving of subsidiaries - (15,873) (1,571) (39,934) (57,377) -
------------ ------------- -------------- ------------- ------------ ------------
Balance at end of period $ 64,344 $ - $ - $ - $ - $ 64,344
============ ============= ============== ============= ============ ============
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) These corporations were dissolved on October 28, 2002.
F-86
CHARTER OAK ENERGY, INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Charter Oak COE COE Ave
Development Argentina II Fenix
Charter Oak Corporation Corp. Corp.
Energy, Inc. (b) (b) (b)
------------- ------------- -------------- ---------
Operating Activities:
Net income $ 72 $ - $ - $ -
Adjustments to reconcile to net cash (used in)/
provided by operating activities:
Net other uses of cash - (1,087) (29) (12,003)
Changes in working capital:
Receivables and unbilled revenues, net - 1,383 - 23,825
Fuel, materials and supplies - - - -
Accounts payable (1,476) - - (11,912)
Accrued taxes (2) (333) - -
Other working capital (excludes cash) - - - 38
------------- ------------- -------------- ---------
Net cash flows (used in)/provided by operating activities (1,406) (37) (29) (52)
------------- ------------- -------------- ---------
Investing Activities:
Other investment activities, net 13,118 - - -
------------- ------------- -------------- ---------
Net cash flows provided by investing activities 13,118 - - -
------------- ------------- -------------- ---------
Financing Activities:
Cash dividends on common shares (11,600) - - -
------------- ------------- -------------- ---------
Net cash flows used in financing activities (11,600) - - -
------------- ------------- -------------- ---------
Net increase/(decrease) in cash for the year 112 (37) (29) (52)
Cash - beginning of year 161 37 29 52
------------- ------------- -------------- ---------
Cash - end of year $ 273 $ - $ - $ -
============= ============= ============== =========
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ - $ - $ - $ -
============= ============= ============== =========
Income taxes $ 267 $ 60 $ - $ (7)
============= ============= ============== =========
CHARTER OAK ENERGY, INC. AND SUBSIDIARIES
Consolidating Statement of Cash Flows (a)
Year Ended December 31, 2002
(Thousands of Dollars)
Eliminations Consolidated
------------ ------------
Operating Activities:
Net income $ - $ 72
Adjustments to reconcile to net cash (used in)/
provided by operating activities:
Net other uses of cash (13,118) -
Changes in working capital:
Receivables and unbilled revenues, net 1,383 23,825
Fuel, materials and supplies - -
Accounts payable (1,383) (12,006)
Accrued taxes (38) (297)
Other working capital (excludes cash) 38 -
------------ ------------
Net cash flows (used in)/provided by operating activities (13,118) 11,594
------------ ------------
Investing Activities:
Other investment activities, net 13,118 -
------------ ------------
Net cash flows provided by investing activities 13,118 -
------------ ------------
Financing Activities:
Cash dividends on common shares - (11,600)
------------ ------------
Net cash flows used in financing activities - (11,600)
------------ ------------
Net increase/(decrease) in cash for the year - (6)
Cash - beginning of year - 279
------------ ------------
Cash - end of year $ - $ 273
============ ============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized $ - $ -
============ ============
Income taxes $ - $ 320
============ ============
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) These corporations were dissolved on October 28, 2002.
F-87
NOTES TO FINANCIAL STATEMENTS
NU Reference is made to "Notes to Consolidated Financial Statements"
contained on pages 41 through 61 in NU's 2002 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 15 through 24 in CL&P's 2002 Annual Report, which
information is incorporated herein by reference.
PSNH Reference is made to "Notes to Consolidated Financial Statements"
contained on pages 15 through 23 in PSNH's 2002 Annual Report, which
information is incorporated herein by reference.
WMECO Reference is made to "Notes to Consolidated Financial Statements"
contained on pages 13 through 21 in WMECO's 2002 Annual Report, which
information is incorporated herein by reference.
F-88
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 2002 Annual Report on Form 10-K for NU. (File No. 1-5324)
A.2 2002 Annual Report on Form 10-K for CL&P. (File No. 0-11419)
A.3 2002 Annual Report on Form 10-K for PSNH. (File No. 1-6392)
A.4 2002 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 24, 1988.
(Exhibit 3.1.1, 1988 NU Form 10-K,
File No. 1-5324)
B.2 The Connecticut Light and Power Company
B.2.1 Certificate of Incorporation of
CL&P, restated to March 22, 1994.
(Exhibit 3.2.1, 1993 NU Form 10-K,
File No. 1-5324)
B.2.2 Certificate of Amendment to
Certificate of Incorporation of
CL&P, dated December 26, 1996.
(Exhibit 3.2.2, 1996 NU Form 10-K,
File No. 1-5324)
B.2.3 Certificate of Amendment to
Certificate of Incorporation of
CL&P, dated April 27, 1998. (Exhibit
3.2.3, 1998 NU Form 10-K, File No.
1-5324)
B.2.4 By-Laws of CL&P, as amended to
January 1, 1997. (Exhibit 3.2.3,
1996 NU Form 10-K, File No. 1-5324)
B.3 Public Service Company of New Hampshire
B.3.1 Articles of Incorporation, as
amended to May 16, 1991. (Exhibit
B.3.1, 1997 NU Form U53, File No.
30-246)
E-1
B.3.2 By-Laws of PSNH, as amended to
November 1, 1993. (Exhibit 3.3.2,
1993 NU Form 10-K, File No. 1-5324)
B.4 Western Massachusetts Electric Company
B.4.1 Articles of Organization of WMECO,
restated to February 23, 1995.
(Exhibit 3.4.1, 1994 NU Form 10-K,
File No. 1-5324)
B.4.2 By-Laws of WMECO, as amended to
April 1, 1999. (Exhibit 3.1, 1999 NU
Form 10-Q, File No. 1-5324)
B.4.3 By-Laws of WMECO, as further amended
to May 1, 2000. (Exhibit 3.1, 2000
NU Form 10-Q for the Quarter Ended
June 30, 2000, File No. 1-5324)
B.5 North Atlantic Energy Corporation
B.5.1 Articles of Incorporation of NAEC
dated September 20, 1991. (Exhibit
3.5.1, 1993 NU Form 10-K, File No.
1-5324)
B.5.2 Articles of Amendment dated October
16, 1991, and June 2, 1992, to
Articles of Incorporation of NAEC.
(Exhibit 3.5.2, 1993 NU Form 10-K,
File No. 1-5324)
B.5.3 By-Laws of NAEC, as amended to
November 8, 1993. (Exhibit 3.5.3,
1993 NU Form 10-K, File No. 1-5324)
B.5.4 By-Laws of NAEC, as amended to June
1, 2000. (Exhibit 3.1, 2000 NU Form
10-Q for the Quarter Ended September
30, 2000, File No. 1-5324)
B.6 The Quinnehtuk Company
B.6.1 Articles of Organization of The
Quinnehtuk Company dated December
14, 1928, and Articles of Amendment
dated December 18, 1930. (Exhibit
B.6.1, 1997 NU Form U5S, File No.
30-246)
B.6.2 Amendment to Certificate of
Incorporation of The Quinnehtuk
Company dated June 10, 1975.
(Exhibit B.6.2, 1993 NU Form U5S,
File No. 30-246)
B.6.3 By-Laws of The Quinnehtuk Company as
amended to February 11, 1998.
(Exhibit B.6.3, 1997 NU Form U5S,
File No. 30-246)
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 Form U5S, File No. 30-246)
B.7.3 Certificate of Amendment to
Certificate of Incorporation of the
Rocky River Realty Company, dated
April 27, 1998. (Exhibit B.7.3, 1997
NU Form U5S, File No. 30-246)
B.7.4 By-Laws of The Rocky River Realty
Company, as amended to February 11,
1998. (Exhibit B.7.4, 1997 NU Form
U5S, File No. 30-246)
B.8 Electric Power, Incorporated
B.8.1 Charter of Electric Power,
Incorporated dated January 1, 1955.
(Exhibit B.9, 1983 NU Form U5S, File
No. 30-246)
B.8.2 Amendment to Charter of Electric
Power, Incorporated (Special Act No.
133, Volume XXXI, page 103, approved
June 11, 1963). (Exhibit B.9.1, 1983
NU Form U5S, File No. 30-246)
B.8.3 Certificate of Amendment to
Certificate of Incorporation of
Electric Power, Incorporated, dated
December 26, 1996. (Exhibit B.10.3,
1996 NU Form U5S, File No. 30-246)
B.8.4 By-Laws of Electric Power,
Incorporated as amended to February
15, 1952. (Exhibit B.9.2, 1983 NU
Form U5S, File No. 30-246)
B.9 The Nutmeg Power Company
B.9.1 Certificate of Organization of The
Nutmeg Power Company dated July 19,
1954. (Exhibit B.11, 1983 NU Form
U5S, File No. 30-246)
B.9.2 Certificate of Amendment to the
Certificate of Incorporation of The
Nutmeg Power Company, dated
December 26, 1996. (Exhibit B.11.2,
1996 NU Form U5S, File No. 30-246)
B.9.3 By-Laws of The Nutmeg Power Company
as amended to January 1, 1997.
(Exhibit B.11.3, 1996 NU Form U5S,
File No. 30-246)
B.10 The Connecticut Steam Company
B.10.1 Certificate of Incorporation of The
Connecticut Steam Company dated May
13, 1965, including Special
E-3
Act No. 325, an Act Incorporating
The Connecticut Steam Company
(Special Acts 1963, Senate Bill No.
704, approved June 24, 1963).
(Exhibit B.12, 1983 NU Form U5S,
File No. 30-246)
B.10.2 Certificate of Amendment to
Certificate of Incorporation of The
Connecticut Steam Company, dated
December 26, 1996. (Exhibit B.12.2,
1996 NU Form U5S, File No. 30-246)
B.10.3 By-Laws of The Connecticut Steam
Company, as amended to January 1,
1997. (Exhibit B.12.3, 1996 NU Form
U5S, File No. 30-246)
* B.10.4 By-Laws of the Connecticut Steam
Company, as amended to June 26,
1998.
B.11 Holyoke Water Power Company
B.11.1 Charter of Holyoke Water Power
Company, as amended. (Exhibit 1.8,
1977 NU Form U5S, File No. 30-246)
B.11.2 By-Laws of Holyoke Water Power
Company, as amended to February 11,
1998. (Exhibit B.14.2, NU Form U5S,
File No. 30-246)
B.12 Holyoke Power and Electric Company
B.12.1 Charter of Holyoke Power and
Electric Company dated December 5,
1925. (Exhibit B.15, 1983 NU Form
U5S, File No. 30-246)
B.12.2 Chapter 147 of the Massachusetts
Acts of 1926 amending the Charter of
Holyoke Power and Electric Company,
as recorded with the Office of the
Secretary of the Commonwealth on
March 29, 1926. (Exhibit B.15.1,
1983 NU Form U5S, File No.
30-246)
B.12.3 By-Laws of Holyoke Power and
Electric Company, as amended to
February 11, 1998. (Exhibit B.15.3,
1997 NU U5S, File No. 30-246)
B.13 Northeast Utilities Service Company
B.13.1 Charter of Northeast Utilities
Service Company, as amended to
February 20, 1974. (Exhibit B.16,
1983 NU Form U5S, File No. 30-246)
B.13.2 Certificate of Amendment to
Certificate of Incorporation of
Northeast Utilities Service Company,
dated December 26, 1996. (Exhibit
B.16.2, 1996 NU Form U5S, File No.
30-246)
E-4
B.13.3 Certificate of Amendment to
Certificate of Incorporation of
Northeast Utilities Service Company,
dated April 27, 1998. (Exhibit
B.16.3, 1997 NU Form U5S, File No.
30-246)
B.13.4 By-Laws of Northeast Utilities
Service Company as amended to
January 1, 1997. (Exhibit B.16.3,
1996 NU Form U5S, File No. 30-246)
B.14 Northeast Nuclear Energy Company
B.14.1 Charter of Northeast Nuclear Energy
Company as amended to April 24,
1974. (Exhibit B.17, 1983 NU Form
U5S, File No. 30-246)
B.14.2 Certificate of Amendment to
Certificate of Incorporation of
Northeast Nuclear Energy Company,
dated December 26, 1996. (Exhibit
B.17.2, 1996 NU Form U5S, File No.
30-246)
B.14.3 Certificate of Amendment to
Certificate of Incorporation of
Northeast Nuclear Energy Company,
dated April 27, 1998. (Exhibit
B.17.3, 1997 NU Form U5S, File No.
30-246)
B.14.4 By-Laws of Northeast Nuclear Energy
Company, as amended to February 11,
1998. (Exhibit B.17.4, 1997 NU Form
U5S, File No. 30-246)
B.14.5 By-Laws of Northeast Nuclear Energy
Company, as amended to June 1, 2000.
(Exhibit B.14.5, 2000 NU Form U5S,
File No. 30-246)
B.15 NU Enterprises, Inc.
B.15.1 Certificate of Incorporation of NU
Enterprises, Inc. dated December 28,
1998. (Exhibit B.15.1, 1999 NU Form
U5S, File No. 30-246)
B.15.2 By-Laws of NU Enterprises, Inc.
dated January 4, 1999. (Exhibit
B.15.2, 1999 NU Form U5S, File No.
30-246)
B.15.3 By-Laws of NU Enterprises, Inc., as
amended to June 1, 2000. (Exhibit
B.16.3, 2000 NU Form U5S, File No.
30-246)
B.16 Select Energy Services, Inc.
B.16.1 Articles of Organization of HEC Inc.
dated June 19, 1990. (Exhibit B.19,
1990 NU Form U5S, File No. 30-246)
E-5
B.16.2 By-Laws of HEC Inc., as amended,
June 30, 1999. (Exhibit B.16.2, 1999
NU Form U5S, File No. 30-246)
B.17 Select Energy Contracting, Inc. F/K/A HEC
International Corporation
B.17.1 Articles of Organization of Select
Energy Contracting, Inc. F/K/A HEC
International Corporation dated
October 12, 1994. (Exhibit B.19.1,
1994 NU Form U5S, File No. 30-246)
B.17.2 Amendment to Articles of
Organization of Select Energy
Contracting, Inc. F/K/A HEC
International Corporation, dated
July 8, 1999 (Exhibit B.17.2, 1999
NU Form U5S, File No. 30-246)
B.17.3 By-Laws of Select Energy
Contracting, Inc. F/K/A HEC
International Corporation dated July
9, 1999. (Exhibit B.17.3, 1999 NU
Form U5S, File No. 30-246)
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.
30-246)
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. 30-246)
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. 30-246)
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. 30-246)
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
November 8, 1993. (Exhibit B.19.2,
1993 NU Form U5S, File No. 30-246)
B.20.3 By-Laws of North Atlantic Energy
Service Corporation, as amended to
June 1, 2000. (Exhibit B.21.3, 2000
NU Form U5S, File No. 30-246)
E-6
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. 30-246)
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. 30-246)
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. 30-246)
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. 30-246)
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. 30-246)
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. 30-246)
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. 30-246)
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. 30-246)
B.23.4 By-Laws of Charter Oak Energy, Inc.,
as amended to January 1, 1997.
(Exhibit B.25.3, 1996 NU Form U5S,
File No. 30-246)
E-7
B.23.5 By-Laws of Charter Oak Energy, Inc.,
as amended to June 1, 2000. (Exhibit
B.24.5, 2000 NU Form U5S, File No.
30-246)
B.24 New England Hydro-Transmission Corporation
B.24.1 Articles of Incorporation, (Exhibit
B.8a, 1986 NEES U5S, File No.
30-33); Articles of Amendment of New
England Hydro-Transmission
Corporation dated January 18, 1989,
(Exhibit B.10a, 1988 NEES U5S, File
No. 30-33).
B.24.2 By-Laws of New England
Hydro-Transmission Corporation dated
March 17, 1998. (Exhibit B. 16.b,
1998 NEES U5S, File No. 30-33)
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 NEES 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 NEES U5S File No.
30-33)
B.26 Amended and Restated Limited Partnership Agreement
(CL&P Capital, L.P.) among CL&P, NUSCO, and the
persons who became limited partners of CL&P Capital,
L.P. in accordance with the provisions thereof dated
as of January 23, 1995 (MIPS). (Exhibit A.1, File No.
70-8451)
B.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. 30-246)
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. 30-246)
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. 30-246)
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. 30-246)
E-8
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. 30-246)
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. 30-246)
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. 30-246)
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. 30-246)
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. 30-246)
B.29.4 By-Laws of Select Energy, Inc., as
amended to May 12, 1997. (Exhibit
B.40.4, 1997 NU Form U5S, File No.
30-246)
B.29.5 By-Laws of Select Energy, Inc., as
amended to June 1, 2000. (Exhibit
B.33.5, 2000 NU Form U5S, File No.
30-246)
B.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. 30-246)
B.30.2 By-Laws of Northeast Generation
Company, dated January 4, 1999.
(Exhibit B.34.2, 1999 NU Form U5S,
File No. 30-246)
B.30.3 By-Laws of Northeast Generation
Company, as amended to June 1, 2000.
(Exhibit B.34.3, 2000 NU Form U5S,
File No. 30-246)
B.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. 30-246)
E-9
B.31.2 By-Laws of Northeast Generation
Service Company, dated January 4,
1999. (Exhibit B.35.2, 1999 NU Form
U5S, File No. 30-246)
B.31.3 By-Laws of Northeast Generation
Services Company, as amended to June
1, 2000. (Exhibit B.35.3, 2000 NU
Form U5S, File No. 30-246)
B.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. 30-246)
B.32.2 Bylaws of CL&P Receivables
Corporation, dated September 12,
1997. (Exhibit B.41.2, 1997 NU Form
U5S, File No. 30-246)
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. 30-246)
B.33.2 Certificate of Merger of Yankee
Energy System, Inc. with and Into NU
Acquisition Corp., dated March 1,
2000. (Exhibit B.38.2, 2000 NU Form
U5S, File No. 30-246)
B.33.2.1 Agreement and Plan of
Merger between Yankee
Energy System, Inc. and
Northeast Utilities,
dated as of June 14,
1999. (Exhibit 1, NU
Form 8-K dated June 14,
1999, File No. 1-5324)
B.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. 30-246)
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. 30-246)
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. 30-246)
E-10
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. 30-246)
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.
30-246)
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. 30-246)
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. 30-246)
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.
30-246)
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.
30-246)
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. 30-246)
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. 30-246)
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. 30-246)
E-11
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. 30-246)
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. 30-246)
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. 30-246)
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. 30-246)
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. 30-246)
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)
E-12
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)
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 3.1, 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)
E-13
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.
* B.47.2 Certificate of Amendment of
Incorporation of Woods Electrical
Co., Inc., dated August 1, 2002.
* B.47.3 By-Laws of Woods Electrical Co.,
Inc., as amended to August 9, 2002.
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.
* B.48.2 Certificate of Amendment of
Incorporation of Woods Network
Services, Inc., dated August 1,
2002.
* B.48.3 By-Laws of Woods Network Services,
Inc., as amended to August 9, 2002.
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)
E-14
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 Revolving Credit Agreement among NU
and the Banks named therein, dated
November 12, 2002 (Exhibit B-3 to
35-CERT filed November 21, 2002,
File No. 70-9755)
C.1.5 Indenture between NU and The Bank of
New York, as Trustee, dated as of
April 1, 2002 (Exhibit A-3 to 35
CERT filed April 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 Revolving Credit Agreement among NU
and the Banks named therein, dated
November 12, 2002. (Exhibit B-3 to
NU 35-CERT filed November 21, 2002,
File No. 70-9755)
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
E-15
December 1, 1986. (Exhibit C.1.47,
1986 NU Form U5S, File No. 30-246)
C.2.5 Financing Agreement between
Industrial Development Authority of
the State of New Hampshire and CL&P
(Pollution Control Bonds, 1988
Series) dated as of October 1, 1988.
(Exhibit C.1.55, 1988 NU Form U5S,
File No. 30-246)
C.2.6 Loan and Trust Agreement among
Business Finance Authority of the
State of New Hampshire and CL&P
(Pollution Control Bonds, 1992
Series A) dated as of December 1,
1992. (Exhibit C.2.33, 1992 NU Form
U5S, File No. 30-246)
C.2.7 Loan Agreement between Connecticut
Development Authority and CL&P
(Pollution Control Bonds - Series A,
Tax Exempt Refunding) dated as of
September 1, 1993. (Exhibit 4.2.21,
1993 NU Form 10-K, File No. 1-5324)
C.2.8 Loan Agreement between Connecticut
Development Authority and CL&P
(Pollution Control Bonds - Series B,
Tax Exempt Refunding) dated as of
September 1, 1993. (Exhibit 4.2.22,
1993 NU Form 10-K, File No. 1-5324)
C.2.9 Amended and Restated Loan Agreement
between Connecticut Development
Authority and CL&P (Pollution
Control Revenue Bond - 1996A Series)
dated as of May 1, 1996 and Amended
and Restated as of January 1, 1997.
(Exhibit 4.2.24, 1996 NU Form 10-K,
File No. 1-5324)
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)
E-16
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)
C.2.10 Revolving Credit Agreement among
WMECO, CL&P, PSNH and Yankee and the
Banks named therein, dated November
12, 2002 (Exhibit B-4 to 35 CERT
filed November 21, 2002, File No.
70-9755)
C.2.11 Amended and Restated Receivables
Purchase and Sale Agreement dated as
of March 30, 2001 (CL&P and CL&P
Receivables Corporation (CRC))
(Exhibit 10.1, 2001 NU 10-Q for the
Quarter Ended September 30, 2001
(File No. 1-5324))
C.2.11.1 Amendment No. 2 to the
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.2.12 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.2.12.1 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.3 Public Service Company of New Hampshire
C.3.1 First Mortgage Indenture dated as of
August 15, 1978, between PSNH and
First Fidelity Bank, National
Association, New Jersey, Trustee.
(Composite including all amendments
to May 16, 1991)(Exhibit 4.4.1, 1992
NU Form 10-K, File No. 1-5324)
C.3.1.1 Tenth Supplemental
Indenture dated as of
May 1, 1991 between
PSNH and First Fidelity
Bank, National
Association. (Exhibit
4.1, PSNH Current
Report on Form 8-K
dated February 10,
1992, File No. 1-6392)
E-17
C.3.1.2 Twelfth Supplemental
Indenture dated as of
December 1, 2001
between PSNH and First
Union National Bank
(Exhibit 4.3.1.2, 2001
NU Form 10-K, File No.
1-5324)
C.3.2 Series D (Taxable New Issue) Amended
and Restated PCRB Loan and Trust
Agreement dated as of April 1, 1999.
(Exhibit 4.3.6, 1999 NU Form 10-K,
File No. 1-5324)
C.3.3 Series E (Taxable New Issue) Amended
and Restated PCRB Loan and Trust
Agreement dated as of April 1, 1999.
(Exhibit 4.3.7, 1999 NU Form 10-K,
File No. 1-5324)
C.3.4 Series A Loan and Trust Agreement
among Business Finance Authority of
the State of New Hampshire and PSNH
and State Street Bank and Trust
Company, as Trustee (Tax Exempt
Pollution Control Bonds) dated as of
October 1, 2001. (Exhibit 4.3.4,
2001 NU Form 10-K, File No. 1-5324)
C.3.5 Series B Loan and Trust Agreement
among Business Finance Authority of
the State of New Hampshire and PSNH
and State Street Bank and Trust
Company, as Trustee (Tax Exempt
Pollution Control Bonds) dated as of
October 1, 2001. (Exhibit 4.3.5,
2001 NU Form 10-K, File No. 1-5324)
C.3.6 Series C Loan and Trust Agreement
among Business Finance Authority of
the State of New Hampshire and PSNH
and State Street Bank and Trust
Company, as Trustee (Tax Exempt
Pollution Control Bonds) dated as of
October 1, 2001. (Exhibit 4.3.6,
2001 NU Form 10-K, File No. 1-5324)
C.3.7 Revolving Credit Agreement among
WMECO, CL&P, PSNH and Yankee and the
Banks named therein, dated November
12, 2002 (Exhibit B-4 to 35 CERT
filed November 21, 2002, File No.
70-9755)
C.4 Western Massachusetts Electric Company
C.4.1 Loan Agreement between Connecticut
Development Authority and WMECO
(Pollution Control Bonds - Series A,
Tax Exempt Refunding) dated as of
September 1, 1993. (Exhibit 4.4.13,
1993 NU Form 10-K, File No. 1-5324)
C.4.2 Revolving Credit Agreement among
WMECO, CL&P, PSNH and Yankee and the
Banks named therein, dated November
12, 2002 (Exhibit B-4 to 35 CERT
filed November 21, 2002, File No.
70-9755)
E-18
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)
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.
E-19
(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
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.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)
E-20
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)
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)
E-21
C.9.12 Revolving Credit Agreement among
WMECO, CL&P, PSNH and Yankee and the
Banks named therein, dated November
12, 2002 (Exhibit B-4 to 35 CERT
filed November 21, 2002, 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
* C.1 Purchase and Sale Agreement by and between PSNH and
Central Vermont Public Service Corporation
(CVPS)/Connecticut Valley Electric Company (CVEC),
dated as of January 31, 2003.
D. Tax Allocation Agreements
D.1 Amended and Restated Tax Allocation Agreement, dated
as of January 1, 1990. (Exhibit D, 1994 NU Form U5S,
File No. 30-246)
D.2 First Amendment, dated as of October 26, 1998, to the
Amended and Restated Tax Allocation Agreement, dated
as of January 1, 1990. (Exhibit D, Amendment No. 2 to
1997 NU Form U5S, File No. 30-246)
D.3 Second Amendment, dated as of March 1, 2000, to the
Amended and Restated Tax Allocation Agreement, dated
as of January 1, 1990 (Exhibit D.3, 2000 NU Form U5S,
File No. 30-246)
G. Organizational Chart - EWG
Northeast Utilities (Parent Company)
- NU Enterprises, Inc. (100% owned by NU)
- Northeast Generation Company (EWG, 100% owned by NU
Enterprises, Inc.)
H. EWG Financial Statements
E-22
ITEM 10. EXHIBIT H
NORTHEAST GENERATION COMPANY
BALANCE SHEETS
-------------------------------------------------------------------------------------------------------------------------
At December 31, 2002 2001
-------------------------------------------------------------------------------------------------------------------------
(Thousands of Dollars)
ASSETS
------
Current Assets:
Cash and cash equivalents....................................................... $ 18,248 $ 6,096
Accounts receivable............................................................. 1,441 -
Accounts receivable from affiliated companies................................... 12,124 10,642
Taxes receivable................................................................ 1,587 4,217
Notes receivable from affiliated companies...................................... 10,000 9,900
Materials and supplies, at average cost......................................... 2,164 1,793
Prepayments and other........................................................... 780 392
-------------- --------------
46,344 33,040
-------------- --------------
Property, Plant and Equipment:
Competitive energy.............................................................. 799,585 783,377
Less: Accumulated depreciation............................................... 19,379 5,454
-------------- --------------
780,206 777,923
Construction work in progress................................................... 21,085 21,055
-------------- --------------
801,291 798,978
-------------- --------------
Deferred Debits and Other Assets:
Special deposits................................................................ 29,627 29,121
Other........................................................................... 10,149 8,889
-------------- --------------
39,776 38,010
-------------- --------------
Total Assets...................................................................... $ 887,411 $ 870,028
============== ==============
The accompanying notes are an integral part of these financial statements.
E-23
ITEM 10. EXHIBIT H
NORTHEAST GENERATION COMPANY
BALANCE SHEETS
-------------------------------------------------------------------------------------------------------------------------
At December 31, 2002 2001
-------------------------------------------------------------------------------------------------------------------------
(Thousands of Dollars)
LIABILITIES AND CAPITALIZATION
------------------------------
Current Liabilities:
Long-term debt - current portion............................................... $ 27,000 $ 24,000
Accounts payable .............................................................. 1,559 1,759
Accounts payable to affiliated companies....................................... 1,719 1,297
Accrued taxes.................................................................. 893 794
Accrued interest............................................................... 7,070 7,029
Other.......................................................................... 484 1,138
-------------- --------------
38,725 36,017
-------------- --------------
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes.............................................. 21,005 -
-------------- --------------
Capitalization:
Long-Term Debt................................................................. 389,000 416,000
-------------- --------------
Common Stockholder's Equity:
Common stock, $1 par value - authorized
20,000 shares; 6 shares outstanding
in 2002 and 2001........................................................... - -
Capital surplus, paid in..................................................... 408,098 408,099
Retained earnings............................................................ 32,259 11,853
Accumulated other comprehensive loss......................................... (1,676) (1,941)
-------------- --------------
Common Stockholder's Equity.................................................... 438,681 418,011
-------------- --------------
Total Capitalization............................................................. 827,681 834,011
-------------- --------------
Commitments and Contingencies (Note 4)
Total Liabilities and Capitalization............................................. $ 887,411 $ 870,028
============== ==============
The accompanying notes are an integral part of these financial statements.
E-24
ITEM 10. EXHIBIT H
NORTHEAST GENERATION COMPANY
STATEMENTS OF INCOME
-------------------------------------------------------------------------------------------------------------------------
For the Years Ended December 31, 2002 2001
-------------------------------------------------------------------------------------------------------------------------
(Thousands of Dollars)
Operating Revenues............................................................... $ 131,897 $ 129,681
-------------- --------------
Operating Expenses:
Operation -
Operation and maintenance.................................................... 25,126 22,328
Depreciation and amortization.................................................. 14,091 3,040
Taxes other than income taxes.................................................. 9,825 7,375
-------------- --------------
Total operating expenses.................................................... 49,042 32,743
-------------- --------------
Operating Income................................................................. 82,855 96,938
Interest Expense:
Interest on long-term debt..................................................... 33,203 6,712
Other interest................................................................. 13 20,650
-------------- --------------
Interest expense, net....................................................... 33,216 27,362
-------------- --------------
Other Income, Net................................................................ 774 1,113
-------------- --------------
Income Before Income Tax Expense................................................. 50,413 70,689
Income Tax Expense............................................................... 20,007 28,432
-------------- --------------
Net Income....................................................................... $ 30,406 $ 42,257
============== ==============
STATEMENTS OF COMPREHENSIVE INCOME
Net Income....................................................................... $ 30,406 $ 42,257
-------------- --------------
Other comprehensive income/(loss), net of tax:
Qualified cash flow hedging instruments........................................ 265 (1,941)
-------------- --------------
Comprehensive Income............................................................. $ 30,671 $ 40,316
============== ==============
The accompanying notes are an integral part of these financial statements.
E-25
ITEM 10. EXHIBIT H
NORTHEAST GENERATION COMPANY
STATEMENTS OF STOCKHOLDER'S EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
Accumulated
Capital Other
Common Surplus, Retained Comprehensive
Stock Paid In Earnings (Loss)/Income Total
-----------------------------------------------------------------------------------------------------------------------------------
(Thousands of Dollars)
Balance at January 1, 2001.................. $ - $ 24,375 $ 23,260 $ - $ 47,635
Plant acquisition adjustment (Note 1D) 405,060 405,060
Net income for 2001...................... 42,257 42,257
Cash dividends on common stock........... (53,664) (53,664)
Repurchase of common stock............... (21,336) (21,336)
Other comprehensive loss................. (1,941) (1,941)
-------------- --------------- -------------- -------------- --------------
Balance at December 31, 2001................ - 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................ $ - $ 408,098 $ 32,259 $ (1,676) $ 438,681
============== =============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements.
E-26
ITEM 10. EXHIBIT H.
NORTHEAST GENERATION COMPANY
STATEMENTS OF CASH FLOWS
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For the Years Ended December 31, 2002 2001
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(Thousands of Dollars)
Operating Activities:
Net income....................................................................... $ 30,406 $ 42,257
Adjustments to reconcile to net cash flows
provided by operating activities:
Depreciation and amortization................................................ 14,091 3,040
Deferred income taxes........................................................ 19,031 23,565
Net other sources/(uses) of cash............................................. 660 (9,035)
Changes in working capital:
Accounts receivable............................................................ (2,923) 777
Material and supplies.......................................................... (371) 142
Accounts payable............................................................... 222 553
Accrued taxes.................................................................. 99 (5,046)
Other working capital (excludes cash).......................................... 1,894 2,478
-------------- --------------
Net cash flows provided by operating activities.................................. 63,109 58,731
-------------- --------------
Investing Activities:
Investments in competitive energy plant........................................ (16,351) (13,414)
NU system Money Pool lending................................................... (100) (9,900)
Investment in special deposits................................................. (506) (1,619)
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Net cash flows used in investing activities...................................... (16,957) (24,933)
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Financing Activities:
Repurchase of common stock..................................................... - (21,336)
Issuance of long-term debt..................................................... - 440,000
Retirement of long-term debt................................................... (24,000) -
Decrease in short-term debt.................................................... - (402,377)
Cash dividends on common stock................................................. (10,000) (53,664)
-------------- --------------
Net cash flows used in financing activities...................................... (34,000) (37,377)
-------------- --------------
Net increase/(decrease) in cash and cash equivalents............................. 12,152 (3,579)
Cash and cash equivalents - beginning of year.................................... 6,096 9,675
-------------- --------------
Cash and cash equivalents - end of year.......................................... $ 18,248 $ 6,096
============== ==============
Supplemental Cash Flow Information:
Cash paid/(refunded) during the year for:
Interest, net of amounts capitalized............................ $ 36,145 $ 22,726
============== ==============
Income taxes.................................................. $ (1,435) $ 12,901
============== ==============
The accompanying notes are an integral part of these financial statements.
E-27