File No. 70-9839
UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Application of Northeast Utilities ) CERTIFICATE PURSUANT TO RULE 24
The Connecticut Light and Power Company, ) UNDER THE PUBLIC UTILITY HOLDING
Western Massachusetts Electric Company, ) COMPANY ACT OF 1935
on Form U-1 )
Pursuant to the requirements of Rules 42, 43, 44, 46(a)and 54 under the
Public Utility Holding Company Act of 1935, Northeast Utilities ("NU"), a
registered holding company, Western Massachusetts Electric Company ("WMECO"),
an electric utility subsidiary of NU and Connecticut Light and Power Company
("CL&P"), an electric utility subsidiary of NU hereby file this quarterly
report as required by the Securities and Exchange Commission's order
authorizing the repurchase of common stock out of capital or unearned surplus
from parent. (HCAR No. 35-27529, May 16, 2002, File No. 70-9839) ("Order").
For the quarter ended June 30, 2002, the following information is
reported pursuant to the Order.
1) A total capitalization calculation to include a breakdown of the common
stock equity account and by percentage for each equity and debt category
for the period ending for each Applicant that indicates the amount of
dividends paid to NU and/or the amount of stock repurchased from NU
during the quarter; total capitalization is to include all short-term
debt and current maturities.
The Connecticut Light and Power Company (CL&P)
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As of June 30, 2002
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(Thousands of
Dollars) %
------------- ----
Common shareholders' equity
Common stock $ 68,120 2.2%
Capital surplus, paid in 370,070 12.2
Retained earnings 288,922 9.6
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Total common shareholder's equity 727,112 24.0
Preferred stock 116,200 3.8
Long-term and short-term debt 854,437 28.3
Rate reduction bonds 1,325,850 43.9
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$3,023,599 100.0%
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A common dividend of $15,018,070.32 was declared on June 19, 2002, and
was paid to NU on June 27, 2002. 772,890 shares of common stock were
repurchased for $49,995,454.29 on June 28, 2002.
Western Massachusetts Electric Company (WMECO)
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As of June 30, 2002
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(Thousands of
Dollars) %
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Common shareholders' equity
Common shares $ 10,866 2.3%
Capital surplus, paid in 69,865 14.5
Retained earnings 70,012 14.5
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Total common shareholders' equity 150,743 31.3
Long-term and short-term debt 182,999 38.1
Rate reduction bonds 147,185 30.6
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$480,927 100.0%
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A common dividend of $4,001,113.60 was declared on June 20, 2002 and was
paid to NU on June 25, 2002. 75,043 shares of common stock were
repurchased for $13,999,271.65 on June 27, 2002.
2) The current senior debt ratings of CL&P and WMECO, including a
representation that such ratings are at or above investment grade.
As of June 30, 2002, the senior debt ratings issued by Standard and
Poor's Corporation and Moody's of CL&P and WMECO are each BBB+ and A3,
respectively, which are investment grade ratings.
3) The Utilities' cash-on-hand both during the quarter and as of the end of
each quarter and a representation as to whether internal cash funds
available during the quarter were sufficient to fund each company's
normal business operations or had to be supplemented with borrowings
from working capital facilities.
CL&P and WMECO represent that during the quarter ended June 30, 2002,
internal cash funds available during the quarter, confirmed with
financing activities set forth below, were sufficient to fund each
company's normal business operations.
Internal cash funds available during the quarter were supplemented with
external borrowings for WMECO.
Cash Net cash flows Net cash flows Net cash flows
beginning provided by provided by (used in) Cash end
of period operating investing financing of period
4/1/2002 activities activities activities 6/30/2002
--------- -------------- -------------- -------------- ---------
(Thousands of Dollars)
CL&P $2,246 $79,871 $19,698 $(99,338) $2,477
WMECO 755 6,319 3,316 (10,389) 1
SIGNATURE
Pursuant to the requirements of the Public Utility Holding Company Act of
1935, the undersigned company has duly caused this Certificate to be signed on
its behalf by the undersigned thereunto duly authorized.
/s/ John P. Stack
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John P. Stack
Vice President - Accounting and Controller
Northeast Utilities
P.O. Box 270
Hartford, CT 06141-0270
August 27, 2002